What Is Organizational

Behavior?
You’re going to college and you see a man lying on the
street.
What do you do?

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Our behavior is a result of our environment

Human behavior is influenced by

culture, attitudes, emotions,
values, ethics, authority, rapport,
hypnosis, persuasion, coercion
and genetics.

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 Factors affecting human behavior

 Attitude – It is the degree to which the person

has a favorable or unfavorable evaluation of the
behaviors/ person/ thing in question.
Eg. Working on a Sunday
 Social Norms – This is the influence of social
pressure that is perceived by the individual to
perform or not perform a certain behavior.
Eg. Dress sense
 Perceived Behavioral Control – This is the
individual’s belief concerning how easy or difficult
performing the behavior will be.
Eg. Speaking in Chinese 7
What kind of behavior are YOU expected
to display after completing your MBA?

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PROFESSIONAL BEHAVIOR OF REAL MANAGERS

Managers (or
administrators)
Individuals who achieve
goals through other people/
team work.

Managerial
ManagerialActivities
Activities
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesof
ofothers
others
to
toattain
attaingoals
goals
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Where Managers Work

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.

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Figure 1.1
What is Organizational Behavior?

Insert Figure 1.1 here

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Figure 1.2 Levels of Analysis

Organizational Level

Group Level

Individual
Level

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Figure 1.3 Components of Organizational Behavior

Understanding
organizational behavior
requires studying

Individuals in Organizations

Group and Team Processes

Organizational Processes

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Management Functions

Planning
Planning Organizing
Organizing

Management
Management
Functions
Functions

Controlling
Controlling Leading
Leading

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Management Functions (cont’d)

Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.

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Management Functions (cont’d)

Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to
be grouped, who reports to whom, and
where decisions are to be made.

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 Management Functions (cont’d)

Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts.

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Management Functions (cont’d)

Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations.

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Mintzberg’s Managerial Roles

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Mintzberg’s Managerial Roles (cont’d)

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Mintzberg’s Managerial Roles (cont’d)

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What are the skills applicable in
“MANAGEMENT SKILLS”?

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Management Skills

Technical skills
The ability to 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.

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What’s the difference between Average, Successful &
Effective Managers?

1.
1.Traditional
Traditionalmanagement
management
• •Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
2.
2.Communication
Communication
• •Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
3.
3.Human
Humanresource
resourcemanagement
management
• •Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,
and
andtraining
training
4.
4.Networking
Networking
• •Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others
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Allocation of Activities by Time

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 EVOLUTION OF ORGANIZATION
•LARGE
•COMPLEX
•MULTIPLE OBJECTIVES

SMALL FAMILIES VILLAGES COMMUNITY FEUDAL NATIONS

•SMALL
•SIMPLE
•SINGLE OBJECTIVE OTHER SOCIAL
ORGANIZATIONS BUSINESS ORGANIZATIONS

LEADERS & MANAGERS &

FOLLOWERS ADMINISTRATORS

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 ORGANIZATION CHART

TOP CEO

MIDDLE
MANAGER MANAGER MANAGER MANAGER

BOTTOM

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 Organizational studies, organizational
behavior, and organizational theory is the
systematic study and careful
application of knowledge about how
people - as individuals and as groups -
act within organizations.

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 Organizational Behavior

Organizational behavior
(OB)
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 organization’s effectiveness.

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 What’s the difference between
EFFICIENCY & EFFECTIVENESS?

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Maximizing the input-output ratio

Ability to execute

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Why Study Organizational Behavior?

Understand
organizational
events

Organizational
Behaviour
Research

Influence Predict
organizational organizational
events events
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OB helps replace Intuition with Systematic Study
Intuition
A feeling not necessarily supported by research.
Eg. All Japanese are intelligent & hard working

Systematic study
Looking at relationships, attempting to attribute
causes and effects, and drawing conclusions based
on scientific evidence.
Provides a means to predict behaviors.
Eg. Japanese efforts are collective in nature. 33
Replacing Intuition with Systematic Study

Preconceived The
Notions ≠ Facts

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OB Discipline

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 Contributing Disciplines to the OB Field
Psychology
The science that seeks to measure, explain, and sometimes change the
behavior of humans and other animals.
Learning & personality theorists, counseling, Ind/Org Psychology

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 Contributing Disciplines to the OB Field (cont’d)
Sociology
The study of people in relation to their fellow human beings.
Group behavior in organizations


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 Contributing Disciplines to the OB Field (cont’d)

Social Psychology
An area within psychology that blends concepts from psychology
and sociology and that focuses on the influence of people on one
another.
Attitudes, communication patterns, group behavior

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 Contributing Disciplines to the OB Field (cont’d)
Anthropology
The study of societies to learn about human beings and their
activities.
Differences in values, attitudes & behavior btwn people in
diff. countries & within diff. org.

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Contributing Disciplines to the OB Field (cont’d)

Political Science
The study of the behavior of individuals and groups
within a political environment.
•Conflict & Power

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Challenges and Opportunities for OB

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 Challenges for
Organizational Behavior

 1: Changing Social/ Cultural Environment

 2: Evolving Global Environment

 3: Advancing Information Technology

 4: Shifting Work/ Employment Relationships

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 Challenges and Opportunities for OB
 Responding to Globalization
– Increased foreign assignments
– Working with people from different cultures
– Coping with anti-capitalism backlash
– Overseeing movement of jobs to countries with low-
cost labor. Advantage India!
 Managing Workforce Diversity
– Embracing diversity
– Implications for managers
• Recognizing and responding to differences

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 Challenges for Organizational Behavior

 Changing Social/ Cultural Environment

– National culture
– Organizational ethics and well-being
• Social responsibility
– Diverse work force

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Major Workforce Diversity Categories

Gender
Gender
National
National
Disability
Disability Origin
Origin

Age
Age
Religion
Religion
Race
Race
Domestic
Domestic
Partners
Partners

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 Challenges for Organizational Behavior

 Evolving Global Environment

– Understanding Global Differences

– Global learning

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 Challenges and Opportunities for OB (cont’d)

 Improving Quality and Productivity

– Quality management (QM)
– Process reengineering
 Responding to the Labor Shortage
– Changing work force
demographics
– Fewer skilled laborers
– Early retirements and older
workers
 Improving Customer Service
– Increased expectation of service
quality
– Customer-responsive cultures

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Challenges and Opportunity for OB (cont’d)

 Improving People Skills

 Empowering People
 Stimulating Innovation and Change
 Coping with “Temporariness”
 Working in Networked Organizations
 Helping Employees Balance Work/Life Conflicts
 Improving Ethical Behavior

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 Basic OB Model

Model
An abstraction of reality.
A simplified representation
of some real-world
phenomenon.

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The Dependent Variables

Productivity
A performance measure that includes
effectiveness and efficiency.

Effectiveness
Achievement of goals.

Efficiency
The ratio of effective
output to the input
required to achieve it.

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The Dependent Variables (cont’d)

Absenteeism
The failure to report to work.

Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization.
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The Dependent Variables (cont’d)

Organizational citizenship
behavior (OCB)
Discretionary behavior that is not
part of an employee’s formal job
requirements, but that nevertheless
promotes the effective functioning
of the organization.

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The Dependent Variables (cont’d)

Job satisfaction
A general attitude toward one’s job, the difference
between the amount of reward workers receive and
the amount they believe they should receive.

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Basic OB
Model,
Stage II
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