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CHAPTER ONE
AN OVER VIEW OF
ORGANIZATIONAL
BEHAVIOR
MGT SECOND & THIRD YEAR FIRST
SEMESTER
Chapter Contents
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1. What is organizational behavior?
2. The three basic units of analysis in OB
3. Replacing intuition with systematic study
4. A review of a manager’s job and it relation to the
study of OB
5. The Characteristics of OB
6. Contributing disciplines to OB
7. Organizational Behavior in the 21 st Century
8. Organization as a system
1.1 What is Organizational Behavior?
Organizational Behavior studies the influence that
individuals, groups and structure have on behavior
within organizations.
Organizational Behavior (often abbreviated as OB) 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.
This study is done so that we can use the knowledge to
improve organizational outcomes and thereby its
effectiveness.
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Main Points from the definition
Organizational behavior is a field of study, meaning
that it is a distinct area of expertise with a common
body of knowledge.
It studies three determinants in organizations:
individuals, groups and structure.
OB applies the knowledge gained about individuals,
groups and the effect of structure on behavior in
order to make organizations work more effectively.
To sum up our definition, OB is concerned with the
study of what people do in an organization and how
their behavior affects the organization’s
performance. 1-4
Focal Points of OB
Some key areas we will look at in this course are aspects of
jobs and work and how they impact organizational effectiveness.
We will also look at work aspects such as:
Jobs
Work
Absenteeism
Employment turnover
Productivity
Human performance
Management
In addition, we will look at the intersection of human performance and
management and how various practices can improve performance.
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Few Absolutes in OB
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Impossible to make
simple and
accurate
generalizations
Human beings are
complex and
diverse
OB concepts must
reflect situational
conditions:
contingency
variables
The Importance of Studying OB
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Understanding the behavior of people in organizations has
become increasingly important as management concerns- such as
Employee Productivity,
The quality of work life,
Job stress, and
Career progression
To learn about yourself and how to deal with others.
You are part of an organization now, and will continue to be a
part of various organizations.
Organizations are increasingly expecting individuals to be able
to work in teams.
Some of you may want to be managers or entrepreneurs.
1.2 OB Model: Three Levels of OB Analysis
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1.3 Complementing Intuition with
Systematic Study
You watch what others do and try to explain to yourself
why they have engaged in their behavior.
Intuition: your “gut feeling” explanation of behavior.
Our intuition relies on gut feelings, individual
observation and commonsense.
It does not give us the complete picture
Systematic study improves ability to accurately predict
behavior. Because;
Assumes behavior is not random
Fundamental consistencies underlie behavior
These can be identified and modified to reflect individual
differences
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Systematic Study
Examines relationships
Attempts to determine causes and effects
Bases conclusions on scientific
evidence;
on data gathered under controlled
conditions
data is measured and interpreted in a
reasonably rigorous manner
by doing so we can better determine
cause and effect and then by applying
scientific evidence to our conclusions
we are better able to predict behavior. 1-10
1.4 Characteristics of OB
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It is Interdisciplinary
Integrates behavioral sciences in understanding behavior and
performance.
It draws heavily on knowledge about behavior generated in
the social sciences of psychology, sociology, and
anthropology.
It has Behavioral Science Foundation
The behavioral have provided the basic philosophy,
characteristics of science, and principles that are so freely
borrowed by the field of organizational behavior.
The social sciences of economics, political science, and
history have had a secondary impact on the field.
Cont…
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It has Scientific Method Foundation
Emphasize the use of logic and theory in
formulating research questions and the systematic
use of objective data in answering such questions
OB follows three Levels of Analysis
The OB is unique in its approach to behavior because;
It encompasses three levels of analysis, individual,
group, and formal organization
All three levels are treated with equal importance
and needs to be scientifically studied
Cont…
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Contingency Orientation
It reflects the need to consider the situation and
individuals involved before drawing conclusions about
behavior
Has no universally applicable set of prescriptions for
managers
Concern for Application
Understanding real events in actual organizations
Communicating results in a meaningful fashion to
practicing managers
1.5 Contributing Disciplines to OB
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Psychology Individual
Sociology
Study of
Social Psychology Group Organizational
Behavior
Anthropology
Organization
Political Science
Contributions of Psychology
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Learning Job satisfaction
Perception Decision-making
Personality processes
Leadership Performance appraisals
effectiveness
Motivational forces
Attitude measurement
Contributions of Sociology
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Some of the areas within OB that have received
valuable input from sociologists are;
Group dynamics
Design of work groups
Formal organization theory and structure
Communications in an organization
Power, and conflict in an organization
Contributions of Social
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Psychology
Measuring, understanding, and changing attitudes;
Communication patterns;
The ways in which group activities can satisfy
individual needs; and
Group decision-making processes.
Contributions of Anthropology
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Anthropologists' work on cultures and
environments,
environments for instance, has helped us understand
differences in
Organizational culture
Organizational environments
Differences among national cultures
Contributions of Political Science
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Specific topics of concern here include:
Structuring of conflict
Allocation of a power
How people manipulate power for individual self-
interest.
1.6 Challenges and Opportunities for OB
Understanding OB has never been more important
for managers as organizations are changing at a
much more rapid pace than historically seen.
In the workplace today there are many challenges
and opportunities in the area of Organizational
Behavior.
1. Responding to Globalization
2. Empowerment of People
3. Managing Workplace Diversity
4. Stimulating Innovation and Change
5. Coping with “Temporariness”
6. Improving Ethical Behavior 1-20
1. Empowering Employees
In many organizations, employees are now
called associates
There is a blurring between the roles of
managers and workers
Decision making is being pushed down to the
operating level
Workers are being given the freedom to make
choices about schedules and procedures and to
solve work-related problems.
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Implications of Empowering Employees
Managers should go considerably
further by allowing employees full
control of their work
Managers have to learn how to give up
control
Managers expected to mentor employees
how to take responsibility for their work
and make appropriate decisions.
2. Responding to Globalization
Increased foreign assignments
Differing needs, attitudes & aspirations
in workforce
Required working with people from
different cultures
Domestic motivational techniques and
managerial styles may not work
Overseeing movement of jobs to
countries with low-cost labor
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3. Managing Workforce Diversity
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Workforce Diversity:
Organizations are becoming
a more heterogeneous mix of
people in terms of gender,
age, race, ethnicity, and
sexual orientation
Implications: Workforce Diversity
Managers have to shift
their philosophy from
treating everyone alike to
recognizing differences.
Managers should
responding to those
differences to ensure
employee retention and
greater productivity.
Managers, at the same time,
not discriminating.
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4. Improving Ethical Behavior
Employees of organizations are increasingly
finding themselves facing ethical dilemmas:
Situations in which they are required to define right and
wrong conduct.
Conditions like;
giving an inflated performance evaluation to an
employee whom they like, knowing that such an
evaluation could save that employee's job.
allowing employees to "play politics" in the
organization if it will help their career advancement.
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Implications: Ethical Behavior
Today's manager needs to create an ethically
healthy climate for his or her employees
through:
Writing and distributing codes of ethics to guide
employees through ethical dilemmas
Creating protection mechanisms for employees
who reveal internal unethical practices;
Offering
seminars, workshops, and similar training
programs to try to improve ethical behaviors.
5. Stimulating Innovation and Change
Organizations must be
innovative and able to change
in order to succeed in the
marketplace today.
Innovation and change
requires:
Flexibility
Quality Improvement
Staying Competitive
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6. Coping-up with “Temporariness”
Jobs are constantly changing
Skills need to be updated for
workers to stay on target
Workers need to be able to deal
with change
Employees need to be able to
cope with flexibility, spontaneity
and unpredictability
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1.7 Organizations as
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Task environment:
Competitors
Unions
Regulatory agencies
Clients
Structure
Inputs:
Material Outputs:
Capital Task Technology Products
Human Services
People
(Actors)
Organizational Boundary
Implications of OB for Managers
OB helps with:
1. Insights to improve people skills
2. Valuing of workforce diversity
3. Empowering people and creating a
positive work environment
4. Dealing with change in the workplace
5. Coping in a world of temporariness
6. Creating an ethically healthy work
environment
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END OF CHAPTER
ONE
THANK YOU!