MGT 321

INTRODUCTION TO
ORGANIZATIONAL BEHAVIOR
LEARNING OBJECTIVES

At the end of the chapter, the students should be

able to:

1. Define Organizational Behavior (OB).

2. Understand the importance of OB.
3. Describe the fundamental concepts of OB.
4. Explain the elements of OB.
 INTRODUCTION

WHAT IS AN ORGANIZATION
A consciously coordinated social unit, composed
of two or more people, that functions on a relatively
continuous basis to achieve a common goal or set
of goals.
 ORGANIZATIONAL BEHAVIOR

DEFINITION:
1. The study of human behaviours in
organizational settings, the interface
between human behaviours and the
organizational context, and the
organization itself.

2. A field of study that investigates the impact of

individuals, groups, and structure on behavior.
 KEY ELEMENTS Of OB

KEY ELEMENTS
1. PEOPLE

2. STRUCTURE

3. TECHNOLOGY

4. ENVIRONMENT
 THE IMPORTANCE OF OB

 Develops interpersonal skills – leading, motivating,

decision-making skills.
 Personal development – better understand
employees behaviour.
 Achieving organizational and individual effectiveness.
 Sharpening and refining decisions.

 Assist managers to understand individual behavior.

 Increases manager’s understanding of interpersonal relations
when 2 or more people interact.
 It examines relationship within small groups.
 FUNDAMENTAL CONCEPTS OF OB

Nature of People Nature of Organization

 Individual Differences  Social Systems
 A Whole Person
 Mutual Interest
 Motivated Behavior
 Human Dignity

HOLISTIC OB
 NATURE OF PEOPLE
 INDIVIDUAL DIFFERENCES
o Individual differs from one to another.
o They are different in physical and mental traits.
o Thus, management must treat each employee differently.

 A WHOLE PERSON
o A person not only comes with skills and intelligence, but
also personal life, needs and desires.
o Organization has to take/hire employees in a complete
set (brain, emotion + physical being = whole person)
o Managers should treat employees as a whole.
 NATURE OF PEOPLE
 MOTIVATED BEHAVIOR
o The urge of the individual to satisfy a particular need
that motivate him/her to do something.
o There are reasons for certain action or behavior
o Thus, the management has to know the reasons of
employees’ actions in order to decide the best way to
motivate them.

 HUMAN DIGNITY
o Every human being must be treated with respect, dignity
& need to be recognized.
o Employees always want to be valued either for their
skills, abilities and knowledge.
 NATURE OF ORGANIZATION
 SOCIAL SYSTEM
o Is the interactions and relationships formed within
an organization.
o employees have social roles and status.

 MUTUAL INTEREST
o Organization needs people and people need
organization
o Both parties have goals to achieve.
Organization needs people to achieve goals (produce
outputs).
People need organization to reach their individual
objective (pay for their living, etc.)
 HOLISTIC OB

 The blending of Nature of People and Nature

of Organization.
 Considering 6 concepts in OB (4 Nature of
People + 2 Nature of Organization)
 DISCUSSION QUESTIONS
1. Briefly explain the components of Nature of People
& Nature of Organization.
2. Briefly explain four (4) elements that govern
Organizational Behavior.
3. Describe the importance of Organizational Behavior.