Organizational Behavior and

leadership
MBA 631
Instructor: Fisseha Zelalem(PhD)
2021
CHAPTER ONE:

AN OVER VIEW OF
ORGANIZATIONAL BEHAVIOR
LEARNING OBJECTIVES
At the end of this chapter, you should be able to:
Examine the meaning of organization and organizational
behavior
Describe the three basic units of analysis in OB
 Describe the characteristics of OB
 Analyze the needs for Study of OB
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.

 A collection of people working together to

achieve a common purpose, with that
purpose being to produce goods and /or
services that satisfy the needs of the
customers.
 FEATURES OF ORGANIZATION

Organizations are characterized as being:

Purposive - common objectives to

accomplish task

Peopled - cooperative efforts

Structured . hierarchal, rules &

regulations, communication
CONCEPTS OF ORGANIZATIONAL
BEHAVIOR

Organizational Behavior is defined as:

 The systematic study of the nature of organizations:
how they begin, grow, and develop, and their effect
on individual members, constituent groups, other
organizations and large institutions (Joe Kelly).

A field of study that investigates the impact that

individuals, groups, and structure have on behavior
within organizations for the purpose of applying
such knowledge towards improving an
organization’s effectiveness (Robbins).
ORGANIZATIONAL BEHAVIOR
 OB is a relatively new, interdisciplinary field of
study.
 Although it draws most heavily from the
psychological and sociological sciences, it also looks
to other scientific fields of study for insights.
 One of the main reasons for this interdisciplinary
approach is because the field of organizational
behavior involves multiple levels of analysis, which
are necessary to understand behavior within
organizations because people do not act in isolation
LEVELS OF ORGANIZATIONAL BEHAVIOR
ANALYSIS
LEVELS OF ORGANIZATIONAL BEHAVIOR
ANALYSIS
The individual level of analysis
The individual level includes each individual person within an
organization.
 Each individual acts differently which affects group dynamics
and the organization as a whole.
 If there are a lot of happy and efficient individuals, the work
environment will be an efficient and productive one.
However, if there are a lot of negative and disgruntled
individuals, it can create a toxic environment.
At the individual level of analysis, organizational behavior
involves the study of learning, perception, creativity, motivation,
personality, turnover, task performance, cooperative behavior,
deviant behavior, ethics, and cognition.
LEVELS OF ORGANIZATIONAL BEHAVIOR
ANALYSIS
The Group level analysis
The group level includes any groups within an organization.

Individuals can affect a group and a group can affect an

organization.
And at the same time, a group can affect individuals and an
organization can affect a group.
At the group level of analysis, organizational behavior involves
the study of the following:
 Group dynamics,
 Intra- and intergroup conflict and cohesion,
 Leadership, power, norms,
 Interpersonal communication, networks, and roles
 LEVELS OF ORGANIZATIONAL BEHAVIOR
ANALYSIS

The organization level analysis

The organization level analysis incorporates the organization as
a whole.
The organization impacts the individual and group behavior
and that individual and group behavior impacts an organization.
At the organization level of analysis, organizational behavior
involves the study of topics such as
 Organizational culture,

 Organizational structure,
 Cultural diversity,
 inter-organizational cooperation and conflict, and
 external environmental forces.
FEATURES OF ORGANIZATIONAL
BEHAVIOR
1. Behavioral Approach to Management:
Organizational behavior is that part of whole management
which represents the behavioral approach to management.
Organizational behavior has emerged as a distinct field of study
because of the importance of human behavior in organizations.
2. Cause and Effect Relationship:
Human behavior is generally taken in terms of cause and
effect relationship and not in philosophical terms. It helps in
predicting the behavior of individuals. It provides
generalizations that managers can use to anticipate the effect of
certain activities on human behaviour.
FEATURES OF ORGANIZATIONAL
BEHAVIOR
3. Organisational Behaviour is a Branch of Social Sciences:
Organisational behaviour is heavily influenced by several other social
sciences viz. psychology, sociology and anthropology. It draws a rich
array of research from these disciplines
4. A Science as well as an Art:
Organisational behaviour is a science as well as an art. The systematic
knowledge about human behaviour is a science and the application of
behavioural knowledge and skills is an art. Organisational behaviour is
not an exact science because it cannot exactly predict the behaviour of
people in organisations. At best a manager can generalize to a limited
extent and in many cases, he has to act on the basis of partial
information.
FEATURES OF ORGANIZATIONAL
BEHAVIOR
5. Beneficial to both organization and Individuals:
Organizational behavior creates an atmosphere whereby both
organization and individuals are benefitted by each other. A
reasonable climate is created so that employees may get much
needed satisfaction and the organization may attain its
objectives.
 NEEDS FOR STUDY OF OB
 Ithelps an individual understand oneself. It is a study of the
actions & attitudes that people exhibit within organization.
 It
helps managers in getting the work done through effective
ways.
 Itemphasizes the interaction and relations between the
organization and individual behavior.
 It helps to develop work-related behavior & job satisfaction.
 It helps in building motivating climate.
 It helps in building cordial industrial relations.
 It implies effective management of human resource
 CHAPTER TWO
FOUNDATION OF INDIVIDUAL BEHAVIOR AND
LEARNING IN AN ORGANIZATION
 Perception

 Attitude

 Personality

 Learning
 GROUP DISCUSSION
1. What is perception?
2. What causes people to have different
perceptions of the same situation?
3. Does perception really affect outcomes?
CONCEPT OF PERCEPTION
 Perception: is the process of receiving information about
and making sense of the world around us. It involves
deciding which information to notice, how to categorize this
information and how to interpret it within the framework of
existing knowledge
 It is a process by which individuals organize and interpret
their sensory impressions in order to give meaning to their
environment
CONCEPT OF PERCEPTION
 Perception may be defined as the way a person
sees the universe and feels about it
 Perception
 Deals with the ways in which people interpret things and how they
act on the basis of these perceptions.
 Has important effects on job satisfaction
and motivation which, in turn, lead to better
job performance.
THE PERCEPTUAL PROCESS
1. Sensation 3.
 An individual’s ability to
detect stimuli in the
immediate environment.
2. Selection
 The process a person uses to 4.
eliminate some of the stimuli
that have been sensed and to
retain others for further
processing.
Organization
 The process of placing
selected perceptual stimuli
into a framework for
“storage.”
Translation
 The stage of the perceptual
process at which stimuli are
interpreted and given
meaning.
WHY WE STUDY PERCEPTIONS

 OB deals with human behavior at work place and perception

is an important determinant of behavior.
 Dealing about perception helps to better understand a
situation
 We don’t see reality. We interpret
FACTORS INFLUENCING PERCEPTION

 A number of factors operate to shape and sometimes distort

perception.

 These factors can reside in the perceiver, in the object or

target being perceived or in the context of the situation in

which the perception is made.

 Factors influencing Perception
Factors in the perceiver
• Attitudes
• Motives
• Interests
• Experience
• Expectations

Factors in the situation

• Time Perception
• Work Setting
• Social Setting
Factors in the Target
• Novelty
• Motion
• Sounds
• Size
• Background
• Proximity
• Similarity
IMAGE
 BARRIERS TO ACCURATE PERCEPTION
 Selective Perception : people selectively interpret
what they see on the basis of their interests,
background, experience and attitudes.
 Halo Effect :Drawing a general impressions about an
individual on the basis of a single characteristics.
 Stereotyping : Judging someone on the basis of one’s

perception of the group to which that persons

belongs.
 Projection—projecting personal faults onto others and

not making an objective appraisal of the situation.

 Denial—refusing to admit that the information even
exists.
MANAGERIAL USES OF
PERCEPTION
 Advertising
 Maintaining Safety
 Managing Impression
 Building Corporate Image
 Managing Performance
 Evaluating Performance
 Judging Employees’ Loyalty
 Self-Assessment and Development
 Building Relationship
DEVELOPING PERCEPTUAL SKILLS

 Getting feedback & receiving feedback

 Having empathy
 Having positive attitudes
 Enhancing self-concept
 Avoiding common biases
 Communication

 Correct use of attribution

The Concept of ATTITUDE
WHAT IS AN ATTITUDE?
Attitude is a state of mind/ mind-set
It is the way we look at things
mentally
They indicate one’s feelings either
favorably or unfavorably to persons
objects and or events
Is the way we react or respond to
people, objects and institutions
HOW ATTITUDE WORKS
Itis a cognitive and affective
evaluation that predisposes a person
to act in a certain way

Cognitiv
e
Affective
BEHAVIOU
R
THREE MAIN
COMPONENTS OF ATTITUDES
Cognition – an opinion or belief
“I just found out I am paid 20% less than my
coworkers.”
Affect – the emotional or feeling segment associated with
that belief
“I feel angry that I am not being treated fairly.”
Behavior – the intention to behave in a certain way
“I am going to quit this job soon as I can, and I am
taking the red stapler with me!”
EXAMPLES OF EMOTIONS

Anxiety
Anger

Happiness
Pride

Sorrow Guilt
 EMOTION
 When a person experiences stimuli, he/she is likely to develop an
inner feeling.
 Emotion is an expression of a feeling of fear, anger, joy, love, hate
grief, frustration, satisfaction or any other similar feelings.
 Emotions help to understand employees’ behavior in organizations.
FACTORS THAT DETERMINE OUR
ATTITUDE
 FACTORS THAT DETERMINE OUR
ATTITUDE CONTD
1 ENVIRONMENT
 Home: Parental/Siblings Influences
 School: Peer Pressure
 Work: Supportive Or Critical
Bosses/Colleagues
 Media: Television, Newspapers,
Magazines, Movies
 Cultural Background: Traditions & Beliefs
 Social Environment: Norms & Values
 Religious Background
FACTORS THAT DETERMINE
OUR ATTITUDE CONTD

2. EXPERIENCES
 Our behavior changes according to our
experiences with various people
Bird
in the
the and
FACTORS THAT DETERMINE
OUR ATTITUDE CONTD

3. EDUCATION

 Education broadens our horizon and

influences our thinking, actions,
behaviors and attitude.
TYPES OF ATTITUDE
Attitude of an individual can be

1.Positive and

2.Negative
ATTITUDE
Attributes of Positive Attributes of Negative
Person Person
• Confident • Unhappy
• Caring • Pessimistic
• Assertive • Unpleasant
• Patient • Defensive
• Humble • Argumentative
• Confrontational
• Disruptive
ROOT CAUSES OF NEGATIVE
ATTITUDES IN THE WORKPLACE

 Role ambiguity
 Perceptions of un fair treatment
 Work that is not satisfying
 Low self-esteem
 Unresolved conflict
 Fear or uncertainly
• Stress፣ etc.
 HOW EMPLOYEES CAN EXPRESS
DISSATISFACTION
Exit Voice
Behavior directed Active and constructive
toward leaving the attempts to improve
organization. conditions.

Loyalty Neglect
Passively waiting for Allowing conditions
conditions to improve. to worsen.
EFFECTS OF NEGATIVE ATTITUDE ON
INDIVIDUALS AND ORGANIZATION
Effects on the individual Effects on the
organization
• Self doubt • Low productivity
• Poor self esteem • low morale
• Increases stress • coworker conflicts
• Bitterness/Resentment • Poor quality work
• Poor Health • Scares of customers
BENEFITS OF POSITIVE MENTAL ATTITUDE

To the individual To the organization

• Increases Confidence • Fosters teamwork

• Reduces stress
• Contribute to career success
• High productivity
• Improves interpersonal
relations
• Is energizing
• Solves problems
• Makes for congenial
atmosphere
• Increases productivity
• Breeds loyalty
• reduces stress
CHANGING EMPLOYEE ATTITUDE
 Providing new information
 Reward system closely associated with individual
performance
 Role clarity and role specification

 Refrain from attacking the attitudes

 Provide frequent feedback

 Employee participation and involvement programs

 Show appreciation for appropriate effort and

behaviours
 PERSONALITY CONCEPTS
 Personality is the study of the characteristics traits of an
individual, relationships between these traits, and the way in
which a person adjust to other people & situations.
 Personality is the sum total of ways in which an individual
reacts & interacts with others (Robbins).
 Personality is the pattern of relatively enduring ways that a
person feels, thinks, & behaves(George & Jones).
 Personality has been shown to influence career choice, job
satisfaction, stress, leadership, & some aspects of job performance
 PERSONALITY CONCEPTS…
Based on the above definitions personality characteristics are:
 Personality refers both physical & psychological qualities.
 It is unique in the sense that no two individuals are same in terms of their
personality.
 Personality is the manner of adjustment of individual to the organization,
environment and the group.
 It is a qualitative aspect. Certain techniques exist to quantify it indirectly.
 Personality is dynamic. It changes with the time & situation.
 Personality influences goal achievement & performance of an individual.
 DETERMINANTS OF PERSONALITY
Nature Nurture
Biological Heritage Personality Life Experiences

Biological Factors
 Heredity- physical stature, facial attractiveness, gender, color of skin, hair &
eye balls, temperament, skills, abilities, etc.
 Brain
 Physical Feature – height, color, facial attraction, muscle strength influences
ones self-concept.

Family Factors
 Socialization
 Birth Order

Environmental Factors (Social & Cultural Factors)

Situational Factors
 THE INTERACTION OF PERSONALITY &
SITUATIONAL FACTORS

Both personality & situational factors affect organizational behavior. It is

the interaction of personality & situational factors that determines how
people think, feel, & behave in general &, specifically, how they do so
within an organization.

Feelings
Thoughts Situational Factors
Personality (Job requirements,
Attitudes rules, etc.)

Behavior
 MAJOR ORGANIZATIONALLY RELEVANT
PERSONALITY TRAITS (TRAITS INFLUENCING OB)
 Locus of Control – is the degree to which people
believe they are masters of their own situation.
 Internallocus of control describes people who believe that
their ability & effort determines what happens to them.
 External locus of control describes people who believe
that what happens to them is controlled by external forces
such as fate, luck, or chance.
 Self-Monitoring – is the extent to which people try to
control the way they present themselves to others
(ability to adjust).
MAJOR ORGANIZATIONALLY RELEVANT
PERSONALITY TRAITS (TRAITS INFLUENCING OB)…
 Self-Esteem – is individuals’ degree of liking or disliking
themselves. High self-esteemed individuals take more risks
in job selection and choose unconventional jobs.
 Risk Taking Attitude decision making, achievement,
motivation
 Authoritarianism negative belief (command) about work
& workers
 PERSONALITY TYPES
Myers-Briggs Type Indicator (100 question personality test)
 Extroverted vs Introverted. Extroverted individual are outgoing,
sociable, & assertive. Introverts are quiet & shy.
 Sensing vs Intuitive. Sensing types are practical & prefer routine &
order. They focus on details. Intuitive rely on unconscious processes
& look at the big picture.
 Thinking vs Feeling. Thinking types use reason & logic to handle
problems. Feeling types rely on their personal values & emotions.
 Judging vs Perceiving. Judging types want control, & prefer their
world to be ordered & structured. Perceiving types are flexible &
spontaneous.
 PERSONALITY TYPES…

Extrovert-Introvert Personality Types (Carl Jung)

Type A & Type B Personality

 Type A: A person with desire to change, extremely

competitive, strong sense of urgency, impatient &
can be hostile.
 Type B: A person who tends to be easygoing &
relaxed.
 CHAPTER THREE

FOUNDATION OF GROUP
BEHAVIOR
TEAM
A group of people with
complementary skills
committed to a common
purpose and set of specific
performance goals
 GROUP
A collection of individuals who have relations to one
another that make them interdependent to some
significant degree (Cartwrigh, 1960)
TEAM VS GROUP
STAGES OF GROUP DEVELOPMENT
 Team development is a dynamic process. Most teams are
in a continual state of change.
 But just because teams/groups probably never reach
complete stability doesn't mean that there isn't some
general pattern that describes how most groups evolve.
 There is strong evidence that teams pass through a
standard sequence of five stages. [Tuckman (1965)].
1. Forming
2. Storming
3. Norming
4. Performing
5. Adjourning
STAGE ONE: FORMING
Immature Group
 Confusion
 Uncertainty
 Assessing situation
 Testing ground rules
 Defining goals
 Getting acquainted
 Establishing norms
STAGE TWO: STORMING

Fractionated Group
 Disagreements over
priorities
 Struggle for Leadership

 Tension

 Hostility

 Clique Formation
STAGES OF TEAM DEVELOPMENT

Norming / consolidating
 The team begins to have
confidence, open approach
 Characterized by close
relationship and
cohesiveness
 Team members agree on
their shared goals, and
norms
STAGES OF TEAM DEVELOPMENT
Performing/ maturity
 The team is fully functional
 Trust ,openness, honesty,
cooperation and continual
review of results have become
part of life
 Development becomes an
increasing priority
 The group channels its energies
into performing its tasks
STAGE FIVE:
ADJOURNING

Disbanding Group
 Disengagement
 Anxiety about separation and
ending
 Positive felling towards Leader

 Sadness

 Self Evaluation
  Forming Storming Norming Performing
Team More directive Leader needs Leader acts Leader takes
Leade approach, to be as a team overview, but
r's outlining how supportive, member, as within the day to
role the process will actively leadership is day running, the
develop and listening to starting to be group is sharing
laying down a team members, shared. leadership
clear structure. and  managing Leader helps between
the conflict, to develop members.
generating consensus.
ideas, and
explaining
decisions.
WORK TEAMS

 Complimentary skills
 Trust one another

 Committed to a common
purpose
 Set of performance goals

 Mutually accountable

 Dedicated to achieve
high performance
 Barriers to Team Performance
 Lack of skills on task or as team members
 Missing basic talents: abstract thinking,
social intelligence, emotional resilience,
work attitude
 Lack of energy due to low meaningfulness,
respect, or trust

66
Barriers to Team Performance
 Lack of clear focus: mission, vision,
values, strategy, tactical goals
 Unclear, inconsistent, conflicting, or
overloaded roles
 Uncertain measures of performance for
team & individual
 Lack of timely feedback with accountability
& coaching

67
ROLE OF LEADERSHIP FOR
EFFECTIVE TEAMWORK
The leader role in team building
 Setting team’s goal together with team members
 Directing and leading team members
 Commitment to team’s goal and excellence
 Set priorities
 Use best skills of its members
 Resolve conflicts systematically
 Communicate new ideas
TEAM PLAYER STYLES

Members of a team can play different roles: The following are

the different styles played by team players

1.Challenger/asking question and doubts

2.Contributor

3.Communicator/process

4.Collaborator/goal oriented
TEAM MEMBERS STYLES IN DETAIL
1. Challenger
Challengers are who questions
 Goals
 Methods
 Ethics
 Disagree whenever appropriate
2. Contributor: they are:
 Task oriented
 Gives technical information/data
 Does his/her job
 Push the team to set high standard
 People see him/her as dependable
TEAM PLAYER STYLE
3.Communicator
 Process oriented
 Sociable
 Ice breaker
 Conflict resolution
 Consensus builder
 Feedback giver
 People see him/her as “people person”

4. Collaborator
 Goal oriented
 Open to new ideas
 Willing to assist others
 People see him/her as generalist and lacks detail
TYPES OF TEAMS

 Teams can do a variety of things. They can make

products, provide services, negotiate deals,
coordinate projects, offer advice, and make decisions.
 The four most common types of teams you're likely
to find in an organization are:
1. Problem-solving teams,
2. Self-managed work teams,
3. Cross-functional teams, and
4. Virtual teams.
TYPES OF TEAMS CONT’D …
1. Problem-solving teams: - Groups of 5 to 12 employees from
the same department who meet for a few hours each week to
discuss ways of improving quality, efficiency, and the work
environment.
2. Self-managed work teams: - Groups of 10 to 15 people who
taken on responsibilities of their supervisors.
3. Cross-functional teams: - Employees from about the same
hierarchical level, but from different work areas, who come
together to accomplish a task.
4. Virtual teams: - Teams that use computer technology to tie
together physically dispersed members in order to achieve a
common goal.
BENEFITS OF EFFECTIVE TEAM
WORKING
1. For the organization
 Accomplish more tasks
 Bring multiple skills and talents
 multiple and conflicting views to be aired and considered
 Organizational control of individual’s behavior
 Shared beliefs and values to the new members
 Force for productivity, quality, cost reduction, speed, change
and innovation
For the individuals
 Learning about the organizational environment

 Gaining new skills

 Obtain valued rewards

 Satisfy important personal needs, especially social needs

 BENEFITS OF TEAM
WORK
 More resources for problem solving
 Improved creativity and innovation

 Improved quality of decision making

 Greater commitments to tasks

 Higher motivation through collective action

 Better control and work discipline

 More individual need satisfaction

 CHARACTERISTICS OF EFFECTIVE
TEAMS
1. High level of interdependence among team members

2. Team leaders have good people’s skills and is committed

to team approach

3. Each team member is willing to contribute

4. Team develops a relaxed climate for communication

5. Team members develop a mutual trust

6. Team and individuals are prepared to take risks
 CHARACTERISTICS OF EFFECTIVE TEAMS
7. Team is clear about goals and established targets
8. Team members roles are defined

9. Team members know how to examine team and individual

errors with out personal attacks

10.Team has capacity to create new ideas.

11. Each team member knows he can influence the team agenda

12.Leadership role is shared and rotates among team members

depending on the situation at hand