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What Is Organizational Behavior?

           What is Organization Behavior Define Organizational Behavior, Disciplines That Contribute to the OB Field, Challenges and Opportunities for OB, Developing an OB Model. Define Management? What Managers Do (Management Functions, Process, Management Roles, Management Skills), -


What is organization ?
 It is a group of people who work independently towards some purpose. Organization is not physical structure; rather; they are people who work together to achieve a set of goals. People who work in an organization have structure pattern of interaction, meaning that they expect each other to complete certain task in an organized way.  Basically, an organization is a group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from two people to tens of thousands.  Organizations have major subsystems, such as departments, programs, divisions, teams, etc. Each of these subsystems has a way of doing things to, along with other subsystems, achieve the overall goals of the organization. Often, these systems and processes are define by plans, policies and procedures.  A consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal 1-1 or set of goals.

Organizational Behavior
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 toward improving an organizations effectiveness.


OB is an academic discipline concerned with understanding and describing human behavior in an organizational environment. It seeks to shed light on the whole complex human factor in organization by identifying cause and effect of that behavior. OB involves 3 levels Individual level  Group level  Organization level Element of OB  People  Structure(hierarchy, authority, responsibility, design level)  Technology  External and internal environment


Contributing Disciplines

Many behavioral sciences have contributed to the development of Organizational Behavior


Social Psychology



The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. Unit of Analysis:

Contributions to OB:
Learning, motivation, personality, emotions, perception Training, leadership effectiveness, job satisfaction Individual decision making, performance appraisal attitude measurement Employee selection, work design, and work stress

Social Psychology
An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. Unit of Analysis:

Contributions to OB:
Behavioral change Attitude change Communication Group processes Group decision making

The study of people in relation to their fellow human beings. Unit of Analysis:
-- Organizational System -- Group

 Contributions to OB:
Group dynamics Work teams Communication Power Conflict Intergroup behavior Formal organization theory Organizational technology Organizational change Organizational culture

2009 Prentice-Hall Inc. All rights reserved.


The study of societies to learn about human beings and their activities. Unit of Analysis:
-- Organizational System -- Group

 Contributions to OB:
Organizational culture Organizational environment Comparative values Comparative attitudes Cross-cultural analysis

2009 Prentice-Hall Inc. All rights reserved.


Major disciplines and their contributions to ob

Nature and Scope OB

Nature can only be known through organizational relationship, pattern of behavior OB exists at multiple level- individual, group, organizational.  It is both science and art. Behavioral knowledge is science and applying that knowledge is an art.  OB is rational thinking. Its goals are to understand, explain, predict and control human behavior in organization. It is action oriented and goal oriented.  It seeks balance between human and technical values at work to achieve productivity by building and maintaining employee dignity, growth and satisfaction, rather than at the expense of these values.  OB is a field which integrate various behavioral sciences (Physiology, sociology, anthropology, psychology etc.

Few Absolutes in OB
Situational factors that make the main relationship between two variables changee.g., the relationship may hold for one condition but not another.
Contingency Variable (Z) In American Culture In Iranian or Australian Cultures

Independent Variable (X)

Dependent Variable (Y)

Boss Gives Thumbs Up Sign

Understood as Complimenting

Boss Gives Thumbs Up Sign

Understood as Insulting - Up Yours!


Challenges and Opportunities for OB

 Responding to Globalization  Managing Workforce Diversity  Improving Quality and Productivity (needs higher involvement)  Improving Customer Service (need to create customer responsive culture)  Improving People Skills(learning, motivating technique etc)  Stimulating Innovation and Change  Coping with Temporariness  Working in Networked Organizations  Helping Employees Balance Work-Life Conflicts  Creating a Positive Work Environment  Improving Ethical Behavior

Responding to Globalization
 Increased foreign assignments  Working with people from different cultures  Coping with anti-capitalism backlash (Capitalism focus on growth efficiency and profit) Finland, France many middle east countries are not capitalist  Overseeing movement of jobs to countries with low-cost labor and it is often criticized by politician, leaders, local community etc.  Managing people during the war on terror

Managing Workforce Diversity

 The people in organizations are becoming more heterogeneous demographically
Embracing diversity Changing U.S. demographics Changing management philosophy Recognizing and responding to differences
Disability Domestic Partners Race NonChristian Gender Age National Origin


Developing an OB Model
 A model is an abstraction of reality: a simplified representation of some real-world phenomenon.  Basic OB model, Stage 1  Our OB model has three levels of analysis
Each level is constructed on the prior level


Types of Study Variables

Independent (X)
The presumed cause of the change in the dependent variable (Y). This is the variable that OB researchers manipulate to observe the changes in Y. Example  Individual  Group  Organizational system

Dependent (Y)
This is the response to X (the independent variable). It is what the OB researchers want to predict or explain. The interesting variable!
      Example Productivity, Turn over, Absenteeism Deviant Workplace Behavior Organizational Citizenship Behavior (OCB), Job Satisfaction

Predictive Ability

Interesting OB Dependent Variables

Transforming inputs to outputs at lowest cost. Includes the concepts of effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).

Failure to report to work a huge cost to employers.

Voluntary and involuntary permanent withdrawal from an organization.

 Deviant Workplace Behavior

Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.

More Interesting OB Dependent Variables

 Organizational Citizenship Behavior (OCB)
Discretionary behavior that is not part of an employees formal job requirements, but that nevertheless promotes the effective functioning of the organization.

 Job Satisfaction
A general attitude (not a behavior) toward ones job; a positive feeling of one's job resulting from an evaluation of its characteristics.


The Independent Variables

The independent variable (X) can be at any of these three levels in this model: Individual
Biographical characteristics, values and attitudes, perception, individual learning and personality and emotions, ability, motivation, individual decision making. group decision making, group structure, power and politics, and

Communication, leadership and trust, conflict, work teams.

Organization System
Organizational culture, human resource policies and practices, and organizational structure and design.

OB Model
Dependent Variables (Y)

Three Levels

Independent Variables (X)


It is the art of getting things done through and with the help of people in a formally organized group. It designs and maintain an environment in which individuals work together to accomplish selected goals. Management is the attainment of organization goals in an effective and efficient manner through planning, organizing, commanding, co-ordinating and controlling of all technical financial and human activities.

What Managers Do
 They get things done through other people.  Management Activities:
Make decisions Allocate resources Direct activities of others to attain goals

 Work in 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 or set of goals.

Management process
 It is a systematic method of handling activities. All managers regardless of their particular skills or aptitude perform certain functions to get things done by others. These functions are interrelated and involve relationship and time.  Management process is the set of on going process and work activities in which managers engage as they plan, organize, lead, and control. Manager manage their work activities are usually done in continuous manner that is, in a process.

Management process
Foyal classification  Planning  Organizing  Commanding  Co-ordinating  Controlling Gullick and Urwick (POSDCORB)  Planning  Organizing  Staffing  Directing  Co-ordinating  Reporting  budgeting Koontz and Donnels  Planning  Organizing  Staffing  Leading  controlling

Functions of Management

Management Functions





Management Functions: Plan

A process that includes defining goals, establishing strategy, and developing course of actions (plans) to coordinate activities.



The management function that assesses the management environment to set future objectives and map out activities necessary to achieve those objectives.


Management Functions: Organize


It is an important dynamic aspect determining



1. what tasks are to be done, 2. who is to do them,


3. how the tasks are to be grouped, 4. who reports to whom, and 5. where decisions are to be made.


 The process of identifying and grouping the work to be performed, who has to perform them, on what basis the task are to be grouped, who reports to whom and who should have the authority to take decision.  1. 2. 3. 4. Organizing is a function involvingAssigning tasks and duties Grouping task Delegating authority and responsibility Allocation of resources

Management Functions: Lead

It is the process of influencing people so that they will contribute to organization and group goals. It is this area of management that behavioral science have major contribution.




A function that includes1. 2. 3. 4. 5. Understanding nature and behavior of people motivating employees, directing others, selecting the most effective communication channels, and Understanding stress and resolving conflicts.

It is about PEOPLE!


Management Functions: Control

Monitoring performance, comparing actual performance with previously set goals(planned performance), and correcting any deviation.

Lead Lead

Therefore there is considerable overlap between controlling and other functions like planning, organizing and leading. Importance of controlling 1. Coping with uncertainty 2. Detecting irregularity 3. Identifying opportunity 4. Handling complex situation 5. Minimizing cost 6. Decentralizing authority


Desired performance Actual performance Measurement of actual performance Comparison of actual performance against std. Identification of deviation Analysis of causes of deviation Program of corrective action Implementation of correction

Manager s Role Henry Mintzber Natalie Anderson (Liaison, Monitor, Negotiator Henri Foyal (Planning, organizing, leading, controlling, co-ordinating )


Henry Mintzberg s Managerial Roles

 Discovered ten managerial roles  Separated into three groups: Interpersonal-(Figure Head, leader,
liaison) Informational (monitor, disseminator,

Liaison) Decisional- (Entrepreneur, resource

allocation, disturbance handler, negotiator)

The Importance of Interpersonal Skills

 Understanding OB helps determine manager effectiveness

Technical and quantitative skills are important But leadership and communication skills are CRITICAL

 Organizational benefits of skilled managers

Lower turnover of quality employees (retention ofemployee) Higher quality applications for recruitment Better financial performance


Mintzberg s Managerial Roles: Interpersonal

This role involves people and other duties


Mintzberg s Managerial Roles: Informational

Manager receives collect and disseminate information. They seek external and internal information by reading reports, periodicals, through personal contact etc, then they disseminate to insider and outsider through board meeting, media etc


Mintzberg s Managerial Roles: Decisional

Role that revolve around searching for opportunities, improving situation by making better and efficient choices


Katz s Essential Management Skills

 Technical Skills
The ability to use process, apply specialized knowledge or expertise

 Human Skills
The ability to work with, understand, and motivate other people, both individually and in groups

 Conceptual Skills
The mental ability to analyze and diagnose complex situations, coordinate and integrate all of an organizational interest and activities, understanding when and where change and development needed

Luthans Study of Managerial Activities

 Is there a difference in frequency of managerial activity between effective and successful managers?  Four types of managerial activity:
Traditional Management
Decision-making, planning, and controlling.

Exchanging routine information and processing paperwork

Human Resource Management

Motivating, disciplining, managing conflict, staffing and training.

Socializing, politicking, and interacting with others.

Successful vs. Effective Allocation by Time

Managers who promoted faster (were successful) did different things than did effective managers (those who did their jobs well)


Intuition and Systematic Study

Gut feelings Individual observation Commonsense


Systematic Study

Looks at relationships Scientific evidence Predicts behaviors

The two are complementary means of predicting behavior.


An Outgrowth of Systematic Study

Evidence-Based Management (EBM)
Basing managerial decisions on the best available scientific evidence Must think like scientists:

Pose a managerial question

Search for best available evidence

Apply relevant information to case


Managers Should Use All Three Approaches

The trick is to know when to go with your gut. Jack Welsh  Intuition is often based on inaccurate information  Faddism is prevalent in management  Systematic study can be time-consuming Use evidence as much as possible to inform your intuition and experience. That is the promise of OB.


Summary and Managerial Implications

 Managers need to develop their interpersonal skills to be effective.  OB focuses on how to improve factors that make organizations more effective.  The best predictions of behavior are made from a combination of systematic study and intuition.  Situational variables moderate cause-and-effect relationships which is why OB theories are contingent.  There are many OB challenges and opportunities for managers today.  The textbook is based on the contingent OB model.