Organization behavior

Most important assets of the organization- People

The study of human behavior in organizations.
Jerald Greenberg
 Talent management

• Human assets need to be carefully managed like money, inventory or any other assets.
• Taleo company in California had 900 employees, helped organizations to select world
class talent; expands its services, gain an international presence. When companies are
not hiring, the need to manage the hiring process online is limited- a period of
uncertainty for Taleo.
• CEO- Michael Gregoire credited for single- handedly getting the company run during
the uncertainty felt by the employees, retain the emplyoees and clients at a difficult
time
 Gregoire do this- emphasis on transparency
and emphasizing customer solutions
• Keen understanding of the dynamics of the people in the organization
• Discouraged employees from personal uncertainties; encourage to focus on what the
company does- meet the customers` need.
• Sales force answered the clients inquiry, open about what was going and reassured
clients` to help them in future
• The clients buy the products based on the relationships with its clients.
• Realization of the customer that their problems can be solved by the solutions of Taleo
• Keep the most talented employees and to get as much as possible from the employees
 People- centered orientation- Organizational
Behavior
• Identify the skills of the employees had and allocating the positions
accordingly
• Proper utilization of the resources
• Belief in good future to be impressive, share optimism
• Ability to read people, importance of building relationships with customers
and employees
• People are a critical element in the effective functioning of an organizations
• Using knowledge derived from research in the behavioral sciences-
psychology and sociology to solve wide range of organizational problems.
• Example – how people can be more productive and more satisfied on the
job? Organization of the Team- when? Job design to suit the people`s
adaptation? What people do in the workplace? Productive and pleasant
work environment?
 OB? History and fundamental characterstics?

• Definition of an organization- a structured social system consisting of

groups and individuals working together to meet some agreed objectives.
• People who alone and together in the work groups strive to attain common
goals.
• Organization whether large or small in size, public or private to ownership,
they exist to earn a profit or to enhance the public good- the structured
social units working together
 The field of organizational behavior

• Deals with human behavior in organizations

• The multidisciplinary field that seeks knowledge of behavior in organizational setting by systematically studying
individual, group, and organizational processes
• Helps to enhance organizational effectiveness and individual well- being by understanding the scientific
knowledge to be used for practical purposes.
• Four main characteristics of OB-
1. Grounded in scientific method
2. Studies individuals, groups, and organizations
3. Interdisciplinary in nature
4. Used to enhance organizational effectiveness and individual well- being
 OB applies to scientific method to practical
managerial problems
• OB seeks to develop a base of knowledge by using an empirical, research based approach-
have systematic observation and measurement of the behavior or phenomenon of interest
• Managers rely on knowledge derived from OB research to-
Enhance people`s job performance
the way job design helps to enhance feelings of job satisfaction
the conditions which supports individuals to make better decisions
The ways to improve the quality of organizational communication
To alleviate work- related stress
How leaders enhance the effectiveness of their team
How organizations designed to make people highly productive
 Three levels-OB focuses on individual, groups
and organizations
• People- alone and in groups, both influence and influenced by their work
environments. All three levels of analysis helps to comprehend the complex
dynamics of behavior in organizations
• The relationships between the three central themes given attention
• Example- individual perceptions, attitudes, and motives?
How people communicate with each other and coordinate their activities
among themselves in work groups
 OB is multidisciplinary in nature

• OB draws on a wide variety of social science disciplines using a wide variety

of approaches, from highly individual- oriented approach of psychology ,
through more group- oriented approach of sociology, to issues in
organizational quality studied by the management scientists
 OB seeks to improve organizational effectiveness
and the quality of life at work-
Theory X and Theory Y
• Assumption- of Theory `X` orientation
This philosophy of management assumes that people are basically lazy,
dislike work, need direction and, will work hard only when they are pushed.
• People are capable of working hard under the right conditions. If employees
are recognized for their efforts- fairly paid and given an opportunity to
succeed- being well trained- they must put effort without being pushed, here
management`s job is to create the conditions that make people want to
perform as they should
 Theory Y orientation

• Assumption – people are willing to work hard when the right conditions
prevail. This philosophy assumes that people have a psychological need to
work and seek achievement and responsibility. They are responsive to their
work environment, and the way they are treated will influence the way they
will act.
• This approach is strongly associated with improving the quality of people`s
work lives
• OB scientists are interested in learning what conditions will lead people to
behave most positively, making productive work and enjoyable for the
people working in them.
 Importance of OB

• Job 1- people do not get along, nobody knows what to do, everyone is
goofing off, the boss is unpleasant.
• Job 2- everyone is friendly, knowledgeable, hard working and very pleasant-
the more to your liking
You will do your best, likely to go for work and taking pride in what you do?
 OB explain how people feel about their work,
how well they perform?

• In a survey, three factors were found to be related to job performance

1. Management and organization
2. Information technology
3. Work design
The study of OB provides important insight into work performance
 Specific ways, OB matters to people and the
organizations in which they work
• Managers accurately appraise the work of their subordinates enjoy lower
costs and higher productivity than those who appraise less accurately
• People who are satisfied with the way they are treated on their jobs are more
pleasant to their coworkers and bosses and less likely to quit job than those
who are dissatisfied
• Trained people work together in teams tend to be happier and more
productive than those who simply thrown together without any
organizational support
• The belief of an employees- they have been treated unfairly on the job are more likely to steal from
their employers and to reject the policies of their organization than those who believe they have
been treated fairly
• People who are mistreated by their supervisors on the job suffers more mental and physical illness
than those who are treat with kindness, dignity and respect
• Organizations that treat employees well w.r.t. pay/ benefits, opportunities, job security, friendliness,
fairness, and pride in company are on average, twice profitable as the standard and poor`s 500
companies
• Good employee benefits and friendly working conditions are more profitable than those that are
less people- oriented.
 Managers must know

• How to motivate employees?

• How to keep people satisfied with their jobs?
• How to communicate clearly?
• Hopw to make teams function smoothly ?
• How to design jobs most effectively?
dealing with people at work is everybody`s responsibility on the job
• Thank you