Organizatio

n al
Behavior
The Human
S ide of Busin
ess
“Organizations do not ‘perform’; individuals in organizations
perform in ways that allow the organizations to achieve
desirable performance outcomes”.
Kozlowski and Klein, (2000)
 Some basics
Management
Organization
P-O-L-C Framework
Management Roles
Managerial Skills
 P-O-L-C Framework of
Management
0 Planning- Defining organizational goals, establishing overall
strategy, developing a comprehensive set of plans to
integrate and coordinate activities.

0 Organizing- organization design, job design

0 Leading- to direct and coordinate those people, to motivate,

communication, resolving conflicts

0 Controlling- monitoring the performance, to ensure things

are being accomplished as planned & correcting any
significant deviations.
0
Managerial
Interpersonal Roles
Roles
0 - Figurehead
0 - Leader
0 - Liaison

0 Informational Roles
0 - Monitor
0 -Disseminator
0 -Spokesperson

0 Decisional Roles
0 - Entrepreneur
0 Disturbance Handler
0 -Resource Allocator
0 - Negotiator
 Interpersonal Category
0 The managerial roles in this category involve providing information
and ideas.

0 Figurehead – As a manager, you have social, ceremonial and legal

responsibilities. You're expected to be a source of inspiration. People
look up to you as a person with authority, and as a figurehead.

0 Leader – This is where you provide leadership for your team, your
department or perhaps your entire organization; and it's where you
manage the performance and responsibilities of everyone in the group.

0 Liaison – Managers must communicate with internal and external

contacts. You need to be able to network effectively on behalf of your
organization.
 Informational Category
0 The managerial roles in this category
involve processing information.

0 Monitor – In this role, you regularly seek out information

related to your organization and industry, looking for
relevant changes in the environment. You also monitor your
team, in terms of both their productivity, and their well-
being.
0 Disseminator – This is where you communicate potentially
useful information to your colleagues and your team.
0 Spokesperson – Managers represent and speak for their
organization. In this role you're responsible for
transmitting information about your organization and its
goals to the people outside it.
 Decisional Category

0 The managerial roles in this category involve using information.

0 Entrepreneur – As a manager, you create and control change within the organization.
This means solving problems, generating new ideas, and implementing them.

0 Disturbance Handler – When an organization or team hits an unexpected roadblock,

it's the manager who must take charge. You also need to help mediate disputes within
it.

0 Resource Allocator – You'll also need to determine where organizational resources

are best applied. This involves allocating funding, as well as assigning staff and other
organizational resources.

0 Negotiator – You may be needed to take part in, and direct, important negotiations
within your team, department, or organization.
 Managerial Skills
0 Technical Skills- The ability to apply specialized knowledge
or expertise. Eg. Civil Engineers, system Analysts

0 Human Skills- the ability to work with, understand &

motivate other people both individually and in groups. To
communicate, motivate, and to delegate.

0 Conceptual Skills- mental ability to analyze & diagnose

complex situations. Mangers' inability to rationally process
& interpret information is costly to an organization.
 Managerial Activities
Traditional Management- Decision making, planning,
controlling

Communication- exchanging and processing

Human Resource Management- motivating,

disciplining, managing conflicts

Networking- socializing, interacting with outsiders.

 Functions, Roles, Skills, Activities,
Approaches to Management
- Each Recognizes the paramount importance of managing
people.

- - leading function
- - interpersonal roles
- - human skills
- - communication
- - human resource management
 Organizational Behavior

Mastery of OB is the
new currency of leading
today’s business
0 -how individuals interact within groups.

0 study of human behavior in the organization.

0 application of psychology in the workplace or any

organization.

0 how people and groups in organizations behave.

0 the role of organizational systems, structures & processes in

shaping behavior in order to understand how organizations
really work.
 The Goal
is to explain, predict, and
control behavior within an
organization
by examining behavior in three different levels of
influence
The Organization

Change
Organizational culture
Decision making
The Group Leadership

Power and politics

Negotiation
Conflict
Communication
The Individual Groups and teams

Motivating self and others

Emotions
Values and attitudes Layers of OB
Perception
Personality
 How can implementing OB transform a company??

0 - insights needed to run smoothly and effectively

0 - essential to being effective at all levels

0 - employee behavior influence an organization’s performance

and enables strategy execution

0 - when employees are led effectively & are motivated to do their

best, the entire organization thrives.

0 Documented Benefits- improved health, productivity, job

satisfaction, organizational commitment, low employee turnover
- to learn how organizations work from individual
motivation to team dynamics to organizational
structure.

- to gain a foundation for the effective management of

people in organizations.
 The Field of Organizational
Behavior
Organizational Behavior studies the influence that
individuals, groups and structure have on behavior within
organizations.

Its chief goal is to apply that knowledge toward improving

an organization’s effectiveness.
 Key Developments in OB
History
The Hawthorne Studies at Western Electric
0 Originally intended as a study of the effects of environmental
changes on productivity.
0 The Hawthorne Effect— the tendency of people to behave
differently (perform better) when they receive attention.
0 Key Findings
1. Economic incentives are less potent than generally believed.
2. Dealing with human problems is complicated and challenging.
3. Leadership practices and work-group pressures strongly influence
productivity, satisfaction, and performance.
4. Personal problems influence worker productivity.
5. Effective communication is critical to success.
6. Factors embedded in the social system influence behavior.
The Hawthorne Effect- Human Relations Movement, 1924-1933
 Key Developments in OB
History
0 The Human Relations Movement
0 Based on belief that managerial practices, morale, and
productivity are strongly linked and that the proper working
environment enhances worker capabilities.
0 Douglas McGregor
0 Theory X
0 Managers assume people dislike work,
avoid responsibility, lack ambition,
and need close supervision.
0 Theory Y
0 Managers assume people enjoy
work, accept responsibility,
are innovative, and are
self-controlling.
0 Elton Mayo and Fritz Roethlisberger in the 1920s with
the workers at the Hawthorne plant of the Western
Electric Company, were part of an emphasis on socio-
psychological aspects of human behavior in
organizations.
 Key Developments in OB
History
0 The Contingency Approach
0 Emphasizes that there is no one best way to manage
people. Different situations require managers to make
decisions about which managerial methods and
approaches to use in a specific instance.
0 Knowledge of organizational behavior and management
is essential to the examination of individual
and situational differences before
deciding a course of action.
 Few Absolutes in OB
0 Impossible to make simple and accurate
generalizations
0 Human beings are complex and diverse
0 OB concepts must reflect situational conditions:
contingency variables

Condition Behavior
Input “A”
“C” “B”
 A Framework for Studying Organizational Behavior

Individual Level Groups and Interpersonal

Relations
Individual differences, mental
ability, and personality Interpersonal communication
Learning, perception, attitudes, Group dynamics and teamwork
values, and ethics Leadership
Individual decision making Power, politics, and influence
and creativity
Foundation concepts of motivation
Conflict, stress, and well-being

The Organizational System

and the Global Environment
Organizational structure and design
Organizational culture and change
The learning organization and
knowledge management
Cultural diversity and international
organizational behavior
 Contributing Disciplines
to the OB Field
Micro:
The
Individual Psychology

Social
Psychology

Sociology

Anthropology
 Behavioural Contribution Unit of Output
science analysis
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Psychology Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Individual

Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Sociology

Formal organization theory Study of

Organizational technology Group Organizational
Organizational change Behaviour
Organizational culture

Behavioural change
Attitude change
Social psychology Communication
Group processes
Group decision making
Organization
system
Comparative values
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational culture
Organizational environment

Conflict
Political science Intraorganizational politics
Power
 Today’s Challenges
in the Indian Workplace

0 Productivity
0 Effectiveness
0 Efficiency
 Developing Effective
Employees
Organizational Citizenship Behaviour (OCB)

0 Discretionary behavior that is not part of an employee’s

formal job requirements, but that nevertheless
promotes the effective functioning of the organization.
 Putting People First
0 committed workforce and positively affects the
bottom line.
0 Work engagement
0 How do you Put people first?
 OB Challenges and
Opportunities
0 Global Competition
0 Productivity
0 Absenteeism
0 Turnover
0 Workforce Diversity
0 Ethical Workplaces
0 Deviant workplace Behavior
0 Withdrawal Behavior
0 Empowerment
0 Job Satisfaction
 Case Study

“Lessons for ‘Undercover’ Bosses”