Unit 1

INTRODUCTION
Unit 1Learning outcomes
After completion of unit 1, students should be able to:
1.Discuss and recall the meaning of organizational
behavior (OB)
2.Discuss the challenges and opportunities of
Organization behavior (OB)
3.Describe the contributions of behavioral sciences to
the understanding of OB
1.1 Concepts and challenges of OB
Organization
An organization is a consciously coordinated social
unit, made up of a group of people, who work
together on common goals on a relatively
continuous basis e.g. Manufacturing and service
firms are organizations, and so are schools,
hospitals, military units, retail stores, police
departments, volunteer organizations, start-ups,
and local, and federal government agencies.
 An organization will be composed of different
individuals belonging to diverse cultural and
personal background which dictates how they
behave and perform in an organization.
 Knowledge of these aspects/diversity is important
as it will help in understanding how one can
motivate employees, increase their performance,
and help organizations establish a strong and
trusting relationship with their employees
Manager/leaders
 Individuals who achieve goals through other
people.
 They make decisions, allocate resources, and
direct the activities of others to attain goals.
 The people who oversee the activities of others
Role of Manager/leaders
1.Planning: A process that includes defining goals,
establishing strategy, and developing plans to coordinate
activities.
2.Organizing Determining what tasks are to be done, who
is to do them, how the tasks are to be grouped, who
reports to whom, and where decisions are to be made.
3.Leading A function that includes motivating employees,
directing others, selecting the most effective
communication channels, and resolving conflicts.
4.Controlling : Monitoring activities to ensure they are
being accomplished as planned and correcting any
significant deviations.
Skills Managers/leaders should possess
1.Technical skills: The ability to apply specialized
knowledge or expertise.
2.Conceptual Skills: The mental ability to analyze and
diagnose complex situations.
3.Human skills: The ability to work with, understand,
and motivate other people, both individually and in
groups. ( The discipline which helps manager
enhance this skill is organizational behavior)
Organization Behavior (OB)
Organizational behavior is a field of study that
investigates how individuals, groups, and structure
affect and are affected by behavior within
organizations. Behavior refers to what people do in
the organization, how they perform, and what their
attitudes are.
 When managers/leaders have strong foundation
in organizational behavior, an organization is able
to make optimally efficient use of its human
resources.
Challenges and opportunities of OB
1. Improving People Skills
 Technological changes, structural changes,
environmental changes are accelerated at a faster rate
in business field. Unless employees and executives are
equipped to possess the required skills to adapt those
changes, the achievement of the targeted goals cannot
be achieved in time.
There are two different categories of skills – managerial
skills and technical skills. Some of the managerial skills
include listening skills, motivating skills, planning and
organizing skills, leading skills, problem solving skill,
decision making skills etc.
These skills can be enhanced by organizing a series of
training and development program, career development
program, induction and socialization etc.
2. Improving Quality and Productivity:
Quality is the extent to which the customers or users
believe the product or service surpasses their needs and
expectations. For example, a customer who purchases
an automobile has certain expectation, one of which is
that the automobile engine will start when it is turned
on. If the engine fails to start, the customer’s
expectations will not have been met and the customer
will perceive the quality of the car as poor.
More and more managers are confronting to meet the
challenges to fulfill the specific requirements of
customers. In order to improve quality and productivity,
they are implementing programs like total quality
management and reengineering programs that require
extensive employee involvement.
3. Managing Workforce Diversity:
This refers to employing different categories of
employees who are heterogeneous in terms of
gender, race, ethnicity, relation, community,
physically disadvantaged, LGBT, elderly people etc.
The primary reason to employ heterogeneous
category of employees is to tap the talents and
potentialities, harnessing the innovativeness,
obtaining synergetic effect among the divorce
workforce.
In general, employees wanted to retain their
individual and cultural identity, values and life
styles even though they are working in the same
organization with common rules and regulations.
4. Responding to Globalization:
Today’s business is mostly market driven; wherever
the demands exist irrespective of distance, locations,
climatic conditions, the business operations are
expanded to gain their market share and to remain
in the top rank etc. Business operations are no
longer restricted to a particular locality or region.
 Company’s products or services are spreading
across the nations using mass communication,
internet, faster transportation etc.
Example: SAMSUNG hand phones are being sold
outside of their home country Finland. Japanese cars
are being sold in different parts of globe.
5. Empowering People:
The main issue is delegating more power and
responsibility to the lower level cadre of employees
and assigning more freedom to make choices about
their schedules, operations, procedures and the
method of solving their work-related problems.
Encouraging the employees to participate in work
related decision will sizably enhance their
commitment at work.
Empowerment is defined as putting employees in
charge of what they do by bringing out some sort of
ownership in them but what if they misuse the
power is going to be challenging
6. Coping with “Temporariness”:
Managers and employees must learn to cope with
temporariness. They have to learn to live with
flexibility, spontaneity, and unpredictability.
The knowledge of Organizational Behavior will
help understand better the current state of a work
world of continual change, the methods of
overcoming resistance to change process, the ways
of creating a better organizational culture that
facilitates change process etc.
7. Stimulating Innovation and Change:
Today’s successful organizations must foster
innovation and be proficient in the art of change;
otherwise they will become candidates for
extinction in due course of time and vanished from
their field of business.
 For example, Compaq succeeded by creating more
powerful personal computers for the same or less
money than IBM or Apple, and by putting their
products to market quicker than the bigger
competitors.
8. Emergence of E-Organization:
E- Commerce: It refers to the business operations
involving electronic mode of transactions. It
encompasses presenting products on websites and
filling order. The vast majority of articles and media
attention given to using the Internet in business are
directed at on-line shopping.
 E-business: It refers to the full breadth of activities
included in a successful Internet based enterprise.
As such, e-commerce is a subset of e-business. E-
business includes developing strategies for running
Internet-based companies, creating integrated
supply chains, collaborating with partners to
electronically coordinate design and production,
identifying a different kind of leader to run a
‘virtual’ business, finding skilled people to build and
operate intranets and websites.
9. Improving Ethical behavior:
The complexity in business operations is forcing
the workforce to face ethical dilemmas, where they
are required to define right and wrong conduct in
order to complete their assigned activities.
Managers must evolve code of ethics to guide
employees through ethical dilemmas. Organizing
seminars, workshops, training programs will help
improve ethical behavior of employees.
Managers need to create an ethically healthy
climate for his employees where they can do their
work productively and confront a minimal degree
of ambiguity regarding what constitutes right and
wrong behavior.
Other challenges and opportunities
1.Working in Networked Organizations
2.Helping Employees Balance Work/Life Conflicts
3.Creating a positive work environment
1.3 Contribution of major behavioral sciences
discipline to OB (Building blocks of OB)
Organizational behavior is an applied behavioral
science built on contributions from a number of
behavioral disciplines, mainly psychology and social
psychology, sociology, and anthropology.
Psychology’s contributions have been mainly at the
individual or micro level of analysis, while the other
disciplines have contributed to our understanding of
macro concepts such as group processes and
organization
1. Psychology
 The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals.
2. Sociology
 The study of people in relation to their fellow human
beings.
3. Social Psychology
 An area within psychology that blends concepts from
psychology and sociology and that focuses on the influence
of people on one another.
4. Anthropology
 The study of societies to learn about human beings and
their activities.
5. Political Science
 The study of the behavior of individuals and groups within
a political environment.