OB-Ch 1-9 PDF
OB-Ch 1-9 PDF
Department: Commerce
Course Title: Organizational Behavior(OB)
Cr.hr/ECTs: 3/5
Course Instructor: Waktole Feyisa(PhD. Candidate)
❖ Course Contents:
Chapter-one: An over view of Organizational Behavior
Chapter-Two: Foundation of Individual Behavior and Learning Organization
Chapter-Three: Foundation of Group Behavior
Chapter-Four: Concepts of Motivation and their Applications
Chapter-Five: Management of Organizational Conflict
Chapter-Six: Stress Management
Chapter-Seven: Culture And Diversity
Chapter-Eight: Power and Politics in an Organization
Chapter-Nine: Organizational Design and Structure
❖Course Description:
❖The course organizational behavior is a field of study that investigates the impact
and organization structure have on behavior within organizations; and the application
improve productivity and job satisfaction in an organization.
❖The term organization as two or more individuals who are interacting with each other within a
deliberately structured set up and working in an interdependent way to achieve some common
objective/s.
❖Organizations are not buildings or other physical structures. Rather organizations are people who
work together to achieve a set of goals.
❖So now, let’s see organizational behavior and what it exactly means.
❖ What is Organizational Behavior (OB)?
❖Organizational behavior is a field of study that investigates the impact that individuals, groups, and
structure behavior within organizations for the purpose of applying such knowledge toward improving an
organization’s effectiveness.
❖Organizational behavior is a field of study. This means that it is a distinct area of expertise with a common
body of knowledge. By saying that OB is a field of study, we mean that scholars have been accumulating a
distinct knowledge about behavior within organizations.
❖OB studies three determinants of behavior in organizations: individuals, groups, and structure.
❖In addition, 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 the above definition, OB is concerned with the study of What people do in an organization and
how that behavior affects the performance of the organization.
❖Why study OB?
➢The main reason for studying organizational behavior is that most of us work in
organizations, so we need to understand, predict and influence the behavior of others in
organizational settings.
➢Management is the process of working with and through others people to achieve
organizational objectives.
❑ Studying OB enables us to:
❖ Understand and Explain organisational events. To know what, and why something
happened in order to determine if it was something to be prevented.
❖ Example: why did our valued employees resign?
❖ Influence or Control of organisational events (come up with ideas and
recommendations for organisational action).
❖ Example: What can I do to make my subordinate to put out more effort on his job?
❖Predict organisational events. It seeks to determine what outcomes will
result from a given action.
❖ Example: How would my subordinates behave to the installation of a new
computer?
The goals of organizational behavior are to:
2. Scope of Organizational Behavior
❖Although there is still considerable debate as to the relative importance of each, there appears to be general
agreement that OB includes the core topics of structure and processes, learning, attitude development and
perception, change processes, conflict, work design, and work stress.
❖The study of Organizational Behavior facilitates the process of explaining, understanding, predicting,
maintaining, and changing employee behavior in an organizational setting.
❖ The value of organizational behavior is that, it isolates important aspects of the manager’s job and offers specific
perspective on the human side of management:
❑ People as organizations,
❑ People as resources, and
❑ People as people.
❖In other words, it involves the understanding, prediction and control of human behavior and factors affecting their
performance and interaction among the organizational members.
❖It concerns about Jobs, Work, Absenteeism, Employment turnover, Productivity, Human
performance and Management
Historical Development
❖One hundred years later, German Sociologist, Max Weber wrote about rational
organizations and initiated discussions of charismatic leadership. Soon after, Frederick
Winslow Taylor introduced the systematic use of goal setting and rewards to motivate
employees.
❖So you can see that OB ideas have been around for a long time; they just were not
organized into a unified discipline until after World War II.
Exercise 1.1
Dear student! Now take time and define the terms organizations, Behavior and
organizational behavior? What is the study scope of OB? When and how OB
began as a field of study?
3. Disciplines contributing to the field of OB (Interdisciplinary)
❖Organization behavior is an applied behavioral science that is built upon
contributions from a number of behavioral disciplines.
❖ The predominant areas are psychology, sociology, social psychology,
anthropology, and political science.
❖As we shall learn, psychology’s contributions have been mainly at the
individual or micro level of analysis, while the other four disciplines have
contributed to our understanding of macro concepts such as group processes
and organization.
Contributing disciplines to the field of OB
Behavioral Contribution Unit of
Output
Science Analysis
Learning
Motivation
Personality
Emotions
Perception
Training
Leadership effectives
Psychology Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress Individual
Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behavior
Sociology
Formal organization Study of
Group organization
Organizational technology
Organization change behavior
Organizational culture
Behavioral change
Attitude change
Social psychology Communication
Group processes
Group decision making
Comparative values
Comparative attitudes Organization
Cross-cultural analysis system
Anthropology
Organizational culture
Organizational environment
❖The units or elements of a system can be cogs, wires, people, computers, and so on. Systems are generally
classified as open systems and closed systems and they can take the form of mechanical, biological, or social
systems.
❖Open systems refer to systems that interact with other systems or the outside environment, whereas
Closed systems refer to systems having relatively little interaction with other systems or the outside
environment.
❖For example, living organisms are considered open systems because they take in substances from their
environment such as food and air and return other substances to their environment.
❖Humans, for example, inhale oxygen out of the environment and exhale carbon dioxide into the environment.
5. The Formal and Informal Organization
6. Challenges of OB
7. Challenges and Opportunity for OB
❖Responding to Globalization
❖Managing Workforce Diversity
❖Improving Quality and Productivity
❖Responding to the Labor Shortage
❖Improving Customer Service
❖Improving People Skills
❖Empowering People
❖Coping with “Temporariness”
❖Stimulation Innovation and Change
❖Helping Employees Balance Work/Life Conflicts
❖Improving Ethical Behavior
END OF
CHAPTER ONE
THANK YOU!
CHAPTER-TWO
Foundation of Individual Behavior and Learning in an Organization
Contents of the chapter:
2.1 Introduction to individual Behavior
2.2 Perception
2.3 Attitude
2.4 Personality
2.5 Learning in an organization
Learning Objectives
After completion of this chapter, students will be able to:
❖Define personality, identify determinants and key dimensions of personality, obtain
knowledge about personality characteristics, and basic methods of measuring personality.
❖Define learning, distinguish between classical and operant conditioning, and explain the
strategies of reinforcement and punishment using positive and negative consequences of
behavior.
❖Define perception and identify the nature and the processes of perception, get acquainted
with the concepts of social perception and understand its common barriers, and know the
relationship between perception and attribution.
❖Know the functions and the formation of attitudes; identify the importance of work-related
attitudes and know how attitudes can be changed through persuasion.
❖Identify types of values and concepts of work-related values.
❖Know the causes and effects of stress and the ways of managing stress.
2.1. Introduction to individual Behavior
❖Behavior refers to the response made by the
individual. The response may be the result of influence
of external factors.
❖The external factor is termed as stimulus and the
action taken by the individual is known as response.
❖Both heredity and environment determine the behavior
of an individual.
Strategies for Change of Behavior
❖Identify the behavior to be learn
❖Baseline performance
❖Functional analysis
❖Intervention strategy
❖Evaluation of performance
Factors Influencing Individual Difference
❖Demographic Factors, Perception, Ability and Skills, Attitude and Personality
❖ Individual differs in the way he/she sees, interprets and understands a particular event.
❖ Individuals may also differ in their opinion though the event or situation may be the same.
❖ An employee may perceive it as “right” to get a subsidized lunch, the other may feel that it is
being given out of surplus of profits achieved by the organization while the third individual
may state that it is mandatory for the management to provide lunch free of cost and that the
management is not doing any favor to them by providing the lunch.
Definition of Perception
❖ Perception is defined as “a process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment (Robbins)”.
❖ Perception is the process by which individuals select, organize and interpret their sensory
impressions to give meaning to their environment. It is influenced by individual
experiences, expectations, and biases.
❖ Perceptual Process:
➢ In effect attitude is used in a generic sense, as to what people perceive, feel and express their views
about a situation, object or other people. Attitude cannot be seen, but the behavior can be seen as an
expression of attitude.
2.2.1. Characteristics of Attitudes:
❖ Attitude is learned: It develops from personal experiences or influences from society and
culture.
❖ Attitudes influence behavior: They affect how individuals respond in different situations.
❖ Attitudes are consistent: They tend to remain stable over time unless influenced by
significant changes.
❖This group development, sometimes called initial integration, is the point at which the group
really begins to come together as a coordinated unit.
❖The turmoil of the storming stage gives way to a precarious balancing of forces.
❖ The group members will begin to develop a feeling of group cohesion and identity.
❖ With the pleasures of a new sense of harmony and group members will strive to maintain
positive balance.
4. Performing (also called Maturity or Productivity)
❖The group operates efficiently and is focused on task completion and high
performance.
❖Performing, occurs when the group has matured and attains a feeling of cohesiveness.
❖ Sometimes called total integration, marks the emergence of a mature, organized,
and well-functioning group.
❖The group is now able to deal with complex tasks and handle internal disagreements
in creative ways.
❖The structure is stable, and members are motivated by group goals.
❖The primary challenges are continued efforts to improve relationships and
performance.
❖Individuals accept one another and conflict is resolved through group discussion.
❖Members of the group make decisions through a rational process that is focused
on relevant goals rather than emotional issues.
5. Adjourning (also called Termination or Mourning)
❖A well-integrated group disbands after completing its tasks.
Group members may experience a sense of closure or sadness.
The adjourning stage of group development is especially important for the many
temporary like task forces, committees, project teams and the like.
Members of these groups must be able to convene quickly, do their jobs on a tight
schedule, and then adjourn (suspend) .
The members’ willingness to disband when the job is done and to work well
together in future responsibilities
END OF
CHAPTER THREE
THANK YOU!
CHAPTER 4 – CONCEPTS OF MOTIVATION AND THEIR APPLICATIONS
4.1. Overview of Motivation
❖Motivation is the process that account for an individual’s intensity, direction and persistence
of effort toward attaining a goal.
❖Motivation can be defined as the internal process that drives individuals to take
action, accomplish goals, and satisfy their needs.
❖Motivation is the psychological force that influences how much effort individuals
put into performing tasks, both personally and professionally.
❖Motivation is crucial for initiating and sustaining behavior over time, helping
individuals to focus on achieving specific outcomes.
Definition and Key elements of Motivation?
❖The processes that account for an individual’s intensity, direction,
and persistence of effort toward attaining a goal.
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries
4.2. Features of Motivation
❖Motivation is not a one-size-fits-all phenomenon; it has several unique features that influence how
people behave and perform.
❖Understanding these features can help individuals and organizations harness the power of motivation
more effectively. The three key elements in our definition are:
✓Direction: Motivation determines the direction of an individual’s behavior. For example, someone may be
motivated to choose a career in healthcare because he/she want to help others, while another person may choose a
career in finance to gain financial rewards.
✓Intensity: The intensity of motivation refers to how energetically a person pursues a goal. A highly motivated person
will put in greater effort, push through challenges, and persist in the face of obstacles. For example, an athlete
training for the Olympics might train for hours daily due to their intense motivation.
✓ Persistence: Motivation also influences persistence—the ability to stay committed to a goal over time. For instance,
someone highly motivated to complete their education may overcome personal and financial challenges, whereas
someone less motivated might drop out at the first sign of difficulty.
4.3. Importance of Motivation
❖Motivation plays a vital role in all aspects of personal and organizational life.
❖It not only affects individual performance but also contributes to overall organizational success.
✓Increased Productivity: Motivated individuals are more productive because they work with enthusiasm,
focus, and dedication. They are willing to go the extra mile, complete tasks on time, and put in the effort
needed to produce high-quality results.
✓Personal Growth: Motivation drives individuals to seek out new learning opportunities, expand their skills,
and push the boundaries of their capabilities. For example, an employee motivated by career advancement
might pursue further training or professional development.
✓Teamwork and Collaboration: Motivation fosters a collaborative spirit in teams. A motivated team is
more likely to communicate openly, share ideas, and support each other to achieve common goals. This
collective motivation leads to higher team cohesion and better overall results.
✓Organizational Success: Organizations with motivated employees experience higher levels of employee engagement, innovation,
and performance. Motivated employees are more likely to contribute positively to the organization’s culture, making the workplace
more dynamic and productive.
✓Employee Retention: When employees feel motivated, they are more likely to stay with their employer for the long term. High
motivation levels reduce turnover rates by improving job satisfaction, organizational commitment, and emotional attachment.
✓Improved Decision-Making: Motivated individuals tend to be more confident and engaged in decision-making processes. Their
focus on achieving goals makes them more invested in finding solutions to challenges, leading to more effective decisions.
✓Health and Well-being: Motivation can also contribute to better physical and mental health. Motivated individuals tend to
have higher levels of energy, better coping skills, and are more likely to take proactive steps toward managing stress and maintaining
a healthy lifestyle.
4.4. Early Theories of Motivation
Early motivation theories laid the foundation for understanding human
behavior and have influenced how we approach motivation today.
✓The 1950s were a fruitful period in the development of motivation
concepts.
✓Three specific theories were formulated during this period: These are
the hierarchy of needs theory, Theories X and Y, and the two-factor
theory.
✓The most well-known theory of motivation is Abraham Maslow's
hierarchy of needs!
✓Intrinsic Motivation: This refers to being driven by internal rewards, such as
personal satisfaction, a sense of achievement.
✓Extrinsic Motivation: In contrast, extrinsic motivation is driven by external
rewards or pressures, such as money, praise, promotions, or recognition.
1. Maslow’s Hierarchy of Needs:
Maslow proposed that humans have five hierarchical levels of needs:
✓Physiological needs (Air, food, water, sleep, shelter, clothing and reproduction)
✓Safety needs (personal security, employment, resources, healthy, property)
✓Social needs (intimate relationships, family, friendship and sense of connection),
✓Esteem needs (Dignity, respect, recognition, status, freedom, and self-confidence)
✓Self-actualization needs (personal growth, desire to become the most that one can
be).
❖According to Maslow, individuals are motivated to satisfy the lower-level needs before moving on
to higher-level needs.
❖This theory helps explain why employees prioritize salary (physiological needs) over job satisfaction
(self-actualization).
2. Herzberg’s Two-Factor Theory
❖Herzberg identified two categories of factors affecting motivation:
✓Hygiene factors: These are basic needs that, if unmet, lead to
dissatisfaction (e.g., salary, work conditions, company policies).
✓Motivators: These are factors that lead to satisfaction and
motivation (e.g., achievement, recognition, the work itself).
Herzberg’s theory emphasizes that simply addressing hygiene
factors isn’t enough to motivate employees; motivators must be
integrated into the workplace.
3. McGregor’s Theory X and Theory Y:
❖McGregor introduced two contrasting views of employee motivation:
✓Theory X: Assumes employees are inherently lazy and need
constant supervision and control to be productive.
✓Theory Y: Assumes employees are self-motivated, enjoy work, and
seek responsibility.
✓Theory Y supports a more participative management style, where
employees are empowered to take ownership of their tasks, leading
to higher motivation and engagement.
Theory X and Theory Y
❖Douglas McGregor proposed two distinct views of human beings: one basically negative, labeled
Theory X, and the other basically positive, labeled Theory Y.
2. Since employee's dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals.
3. Employees will avoid responsibilities and seek formal direction whenever possible.
4. Most workers place security above all other factors associated with work and will display little ambition.
3. Interactions Approach:
❖ Encourages conflict to prevent stagnation and foster innovation.
❖ Maintains a minimal level of conflict to keep groups dynamic and self-critical.
❖ Distinguishes between functional (constructive) and dysfunctional (destructive) conflict.
2.3. Types of Conflict in Organizational Life:
* Conflict within the Individual:
✓ Occurs when there is uncertainty or conflicting demands.
✓ Can influence how an individual responds to other types of conflict.
* Conflict Among Individuals:
✓ Often caused by personality differences or role-related pressures.
* Conflict Between Individuals and Groups:
✓ Related to pressures for conformity or productivity norms.
* Conflict Among Groups:
✓ Examples: Line staff vs. management, labor vs. management.
3. Conflict-Resolution Methods:
1.Direct actions to address conflicts.
2.Common methods include:
▪ Dominance/Suppression: Forcing solutions or smoothing disagreements.
▪ Compromise: Parties sacrifice some objectives to reach a solution.
▪ Integrative Problem-Solving: Collaborative approach to find mutually beneficial
solutions.
Conflict-Resolution Methods
1.Dominance and Suppression:
1. Forcing: Autocratic approach, may lead to destructive indirect conflict.
4. Compromise: Both parties sacrifice some goals, but may not achieve the best solution.
2. Integrative Problem-Solving:
1. Consensus: Collaborative approach for the best solution.
3. Appeal to Higher-Level Goals: Focusing on mutual goals to distract from individual differences.
Functional vs. Dysfunctional Conflict
1. Functional Conflict: Conflict that supports group goals and improves
performance.
❖Positive Effects/Benefits:
❖Surfaces important problems for resolution.
❖Encourages careful consideration and reconsideration of decisions.
❖Increases information available for decision-making.
❖Provides opportunities for creativity.
2. Dysfunctional Conflict: Conflict that hinders group performance and works
against the group.
❖Negative Effects:
❖Diverts energies.
❖Harms group cohesion/unity.
❖Promotes interpersonal fighting.
❖Creates a negative environment for workers.
Conflict Handling Styles:
1. Competing (Win-Lose)
❖Desire to satisfy one’s interests, regardless of the impact on others.
2. Collaborating (Win-Win)
❖Both parties work to fully satisfy each other's concerns.
3. Avoiding (Lose-Lose)
❖Withdrawal from or suppression of conflict.
4. Accommodating (Lose-Win)
❖One party places the opponent's interests above their own.
5. Compromising
❖Each party gives up something in the conflict (Lose-Lose).
Functional Outcomes from Conflict:
❖Increased group performance.
❖Problem-solving opportunities.
❖Retarded communication.
❖ Organizational Consequences:
❖Increased Absenteeism: Due to stress-related health problems
❖Higher Turnover: Employees leave due to stress
❖Lower Commitment: Reduced organizational loyalty
❖Decreased Morale and Motivation: Loss of enthusiasm for work
6.3. Effects of Stress
❖Individual Effects:
❖Emotional/Psychological: Anxiety, burnout, mood swings
❖Cognitive: Impaired decision-making, memory issues, reduced focus
❖Behavioral: Procrastination, absenteeism, substance abuse
❖Organizational Effects:
❖Decreased Productivity: Stress reduces efficiency and performance
❖Poor Relationships: Conflict between employees, reduced collaboration
❖Safety Risks: Increased chances of accidents in high-stress environments
❖Lower Customer Satisfaction: Stress negatively impacts customer service
6.4. Stress Management Strategies
❑ Individual Strategies:
❖Time Management: Prioritize tasks, set realistic deadlines
❖Relaxation Techniques: Meditation, deep breathing, yoga
❖Exercise: Regular physical activity to reduce stress
❖Healthy Lifestyle Choices: Balanced diet, sleep, reduce caffeine/alcohol
❖Mindfulness/Cognitive Techniques: Gain control over negative thoughts
❑ Organizational Strategies:
❖Employee Assistance Programs (EAPs): Provide counseling and support
❖Flexible Work Arrangements: Remote work, flexible hours
❖Job Redesign: Clear roles, manageable workload, autonomy
❖Supportive Work Culture: Open communication, teamwork
❖Stress-Relief Programs: Wellness programs, mindfulness workshops
6.5. Implications for Performance and Satisfaction
❑ Impact on Performance:
❖Positive Stress (Eustress): Increases motivation, focus, creativity
❖In an organizational context, culture influences how employees interact, make decisions,
and align with the organization’s mission and goals.
❖Cultural Diversity in organizations refers to the presence of employees from diverse cultural
backgrounds, including different nationalities, languages, religions, and ethnicities.
❖This diversity can-lead to a variety of perspectives and ideas, enhancing creativity and
problem-solving but also presenting challenges in communication, teamwork, and conflict
resolution.
❖ Benefits of Cultural Diversity:
▪ Improved innovation and creativity: Diverse teams bring multiple perspectives to problem-
solving, leading to innovative solutions.
▪ Enhanced decision-making: Different viewpoints can lead to better-informed decisions and
strategic planning.
▪ Global competitiveness: Cultural diversity allows organizations to operate more effectively
in global markets.
❖ Challenges of Cultural Diversity:
▪ Communication barriers: Different communication styles, languages, and
misunderstandings may arise.
▪ Integration and inclusion: Employees from diverse backgrounds may face difficulties in
adapting to a homogeneous organizational culture.
▪ Conflict: Cultural differences can lead to interpersonal conflicts, which require sensitive
management and conflict resolution strategies.
❖ Managing Cultural Diversity: Organizations can foster inclusivity through diversity
training, creating policies that promote equality, and cultivating a work environment that
values diverse contributions.
7.2 Globalization and People at Work
❖ Globalization refers to the interconnectedness of economies, cultures, and societies
due to advances in technology, communication, and trade. For organizations,
globalization means managing a workforce that is diverse in terms of nationality,
culture, and work practices.
❖ Impact of Globalization on the Workforce:
➢Increased cross-cultural interaction: Employees and managers often work with teams spread
across different regions, requiring effective cross-cultural communication and collaboration.
➢Talent acquisition: Globalization allows companies to tap into a broader talent pool, with the
ability to hire skilled workers from around the world.
➢Remote work: With globalization, employees are increasingly working from different geographic
locations, making remote work a significant aspect of organizational operations.
❖Challenges in Global Workplaces:
▪ Cultural differences in work styles: Different countries have different work
ethics, approaches to hierarchy, and communication styles, which can cause
friction if not managed properly.
▪ Managing time zones and coordination: Multinational teams often face
logistical challenges in coordinating work across different time zones.
▪ Legal and ethical considerations: Organizations must navigate different
labor laws, ethical standards, and practices in various countries.
❖ Strategies for Managing Global Workforces:
▪ Cultural awareness training: Providing training programs that enhance
understanding of different cultures and work practices.
▪ Inclusive leadership: Managers should be equipped with the skills to lead
diverse teams, including those from different cultural backgrounds.
▪ Leveraging technology: Using technology to bridge communication gaps
and enhance collaboration across global teams.
▪ Adapting HR policies: Organizations may need to adjust their HR policies
to accommodate diverse cultural expectations and labor laws.
END OF
CHAPTER SEVEN
THANK YOU!
Reading Assignment chapters:
Chapter Eight
• POWER AND POLITICS IN AN ORGANIZATION
8.1. Definition of power
8.2. Contrasting leadership and power
8.3. Base and sources of power
8.4. Power in group coalitions
Chapter nine
• ORGANIZATIONAL DESIGN AND STRUCTURE
9.1. The essence of organizational design and structure
9.2. Key organization design process
9.3. Types of organization structure
9.4. Technology and job design