Organizational Behavior

Module 1: Introduction to Organizational Behavior

By
Natnael T
 COURSE INFORMATION
Course description
This course provide a comprehensive of individual and group behavior
in organization .its purpose is to provide an understanding of how
organization can be managed more effectively and at the same time
enhance the quality of employees work life .Topic include motivation ,
rewarding behavior ,stress ,individual and group behavior .
Conflict ,power and politicizes , leadership ,job design ,organizational
structure ,decision making ,communication and organizational change
and development .
 Course objective

• This course aims to improve students understanding of human behaviour in organization and
• the ability to lead people to achieve more effectively toward increased organizational
• performance. After completing this course, students should be able to:
• • Understand individual behaviour in organizations, including diversity, attitudes, job
• satisfaction, emotions, moods, personality, values, perception, decision making, and
• motivational theories.
• • Understand group behavior in organizations, including communication, leadership,
• power and politics, conflict, and negotiations.
• • Understand the organizational system, including organizational structures, culture,
• human resources, and change.
Management Theory and Organizational Behavior
Learning Outcomes:

1.1: Describe the general history of management theory and practice and frame how
organizational behavior has developed from these into a discreet field
1.1.1: Describe the history of management theory
1.1.2: Differentiate among Scientific, Administrative, and Bureaucratic Management Theories
1.1.3: Differentiate among Human Relations, General, and X&Y Management Theories
1.1.4: Describe the relationship between management theory and organizational behavior
Management Theories

• Started in the Industrial Revolution

• Needed to organize work for many
• Leverage better technology

• Management theories help organizations

• Focus
• Communicate
• Evolve
 Early Management Theories (early 1900s)
• Scientific Management Theory (Taylor)
• Championed the efficient and effective completion of tasks

 The systematic study of relationships between people and tasks for the purpose of

redesigning the work process to increase efficiency.

 The process of approaching various aspects of organizations in a scientific manner

using scientific tools such as research, management, and analysis.

• Basic Assumption: People Are Rational
People will rationally consider the opportunities available to them and do whatever is
necessary to maximize their economic gain.
Taylor’s Contribution To Management
 Frederick Winslow Taylor (20 March 1856-21 March 1915), widely known as
F. W. Taylor, was an American mechanical engineer who sought to improve
industrial efficiency.
 He is regarded as the father of scientific management, and was one of the
first management consultants.
 Develop a science for every job, including rules of motion, standardized
work implements, and proper working conditions.
 Carefully select workers with the right abilities for the job.
 Carefully train these workers and provide proper incentives.
 Provide these workers with the necessary support.

 Analyzing the work – One best way to do it.

 Later Management Theories (1920–1960)
• Human Relations Management Theory/The Hawthorne Effect (Elton Mayo)
• Human interaction and management influences productivity
• The Hawthorne Studies entail a research program conducted by Elton Mayo and his colleagues at the
Western Electric Plant in Cicero, Illinois from 1927 to 1932.
o Mayo’s conclusion:
• That satisfaction must depend to a large extent on informal social
relationships
• In the group
• Between workers and their managers
• Satisfaction at work influences production
• Group pressures on individual workers were stronger than financial
incentives offered by management
• The group thought that if they increased production, the management
would raise the standard level of piece rate
• General Systems Theory (von Bertalanffy)
• The sum of an organization’s productivity is dependent on the health of all its parts
• The systems approach stresses that managers should view an organization as a set of interdependent parts, such as
people, structure, tasks, and technology, that try to attain diverse objectives in a changing environment.

• X&Y Management Theory (McGregor)

• X management approach – employees are inherently lazy, hate work
• Y management approach – employees are internally motivated.
• Administrative Management Theory (Fayol)
• Fourteen pillars for organizational strength and health

• Bureaucratic Management Theory (Weber)

• Encouraged detailed company objectives and division of labor
Organizational Behavior (1970s)
Bureaucratic
Human Relations
Management Theory Theory
Administrative
Systems Theory
Management Theory

Scientific X&Y Management

Management Theory Theory

Organizational
Behavior
Organizational Behavior as Its Own Field
Learning Outcomes: Organizational Behavior as Its Own
Field
1.2: Describe organizational behavior and differentiate between the three levels of
influence
1.2.1: Describe how organizational behavior evolved into its own unique field
1.2.2: Differentiate between the three levels of influence
Three levels of influence

• The individual
• The group
• The organization
• A distinction is made in OB regarding which level of the organization is being studied at
any given time.
• There are three key levels of analysis2 in OB. They are examining the individual, the
group, and the organization.
• For example, if I want to understand my boss’s personality, I would be examining the
individual level of analysis. If we want to know about how my manager’s personality
affects my team, I am examining things at the team level. But, if I want to understand
how my organization’s culture affects my boss’s behavior, I would be interested in the
organizational level of analysis.
 Organizational behavior Definition

Organizational behavior (OB)

is defined as the systematic study and application
of knowledge about how individuals and groups act within the
organizations where they work.
• OB draws from other disciplines to create a unique field. As you read this
book, you will most likely recognize OB’s roots in other disciplines. For
example, when we review topics such as personality and motivation, we
will again review studies from the field of psychology. The topic of team
processes relies heavily on the field of sociology. In the chapter relating to
decision making, you will come across the influence of economics. When
we study power and influence in organizations, we borrow heavily from
political sciences. Even medical science contributes to the field of
organizational behavior, particularly to the study of stress and its effects on
individuals.
 Why Organizational Behavior Matters
• OB matters at three critical levels. It matters because it is all about
things you care about.
• OB can help you become a more engaged organizational member.
Getting along with others, getting a great job, lowering your stress
level, making more effective decisions, and working effectively within
a team…these are all great things, and OB addresses them!
The following were the top five personal qualities/skills :
1. Communication skills (verbal and written)
2. Honesty/integrity
3. Interpersonal skills (relates well to others)
4. Motivation/initiative
5. Strong work ethic
THANK YOU