Organizational
Behavior
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
O + B = OB
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People Are an
Organization’s Most
Important Assets
3
What is an Organization?
 Organizations are simply groups with
two or more people that share a certain
set of goals and meet at regular times.
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Behavior

This behavior occurs in organizations.
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What is an Organization?
An organization is a
collection of people
who work together
to achieve individual
and organizational
goals.
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What is Organizational Behavior?
Organizational behavior
(OB) is the study of
factors that affect how
individuals and groups act
in organizations and how
organizations manage their
environments.
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What is Organizational Behavior?
 Definition: The study of human
behavior, attitudes, and performance
in organizations.


Value of OB: Helps people attain the competencies needed to become effective
employees, team leaders/members, or managers
Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge
needed by an individual to be effective in most professional and managerial
positions
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What is Organizational Behavior?

Organizational Behavior is the study of
human behavior in the workplace, the
interaction between people and the
organization with the intent to
understand and predict human behavior.
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What is OB?



The study of human behavior in the workplace
The investigation of the impact that individuals, groups and
structure have on behaviour within organizations, for the
purpose of applying such knowledge toward improving an
organization’s effectiveness
OB theories have widespread applications – among other
things, knowing these theories can help you to:

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Promote the well-being of employees
Evaluate solutions proposed by consultants and managers
Predict what will happen in your organization
Influence the direction of your organization
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Organizational Behaviour

. . . a field of study that investigates the
impact that individuals, groups and
structure have on behaviour within
organizations, for the purpose of applying
such knowledge toward improving an
organization’s effectiveness.
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Why Do We Study OB?

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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, at least some of the time
Some of you may want to be managers or
entrepreneurs
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WHY OB
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4
Insert Figure 1.1 here
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Characteristics

Goal-Oriented

Levels of analysis

Human tool

Satisfaction of employees need

A total systems approach
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Challenges and Opportunities
for OB

Responding to Globalization

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Increased foreign assignments
Working with people from different cultures
Coping with anti-capitalism backlash
Overseeing movement of jobs to countries with
cost labor
Managing people during the war on terror
low-
Managing Workforce Diversity


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Embracing diversity
Changing U.S. demographics
Implications for managers

Recognizing and responding to differences
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Major Workforce Diversity
Categories
Gender
National
Origin
Disability
Age
Non-Christian
Race
Domestic
Partners
E X H I B I T 1–4
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Challenges and Opportunities for OB (cont’d)

Improving Quality and Productivity

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Responding to the Labor Shortage

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Quality management (QM)
Process reengineering
Changing work force demographics
Fewer skilled laborers
Early retirements and older workers
Improving Customer Service

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Increased expectation of service quality
Customer-responsive cultures
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Today’s Challenges in the
Canadian Workplace

Challenges at the Individual Level
Job Satisfaction
 Empowerment
 Behaving Ethically


Challenges at the Group Level
Working With Others
 Workforce Diversity

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Today’s Challenges in the
Canadian Workplace

Challenges at the Organizational Level
Productivity
 Developing Effective Employees

Absenteeism
 Turnover
 Organizational Citizenship

Competition From the Global Environment
 Managing and Working in a Global Village

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Productivity

Productivity

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Effectiveness


A performance measure including effectiveness and
efficiency
Achievement of goals
Efficiency

The ratio of effective work output to the input
required to produce the work
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Effective Employees

Absenteeism

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Turnover

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Failure to report to work
Voluntary and involuntary permanent withdrawal from the
organization
Organizational citizenship behaviour

Discretionary behaviour that is not part of an employee’s
formal job requirements, but is helpful to the organization
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Exhibit 1-2
Toward an OB Discipline
Behavioural
science
Psychology
Sociology
Contribution
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Output
Individual
Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Formal organization theory
Organizational technology
Organizational change
Organizational culture
Social psychology
Unit of
analysis
Group
Study of
Organizational
Behaviour
Behavioural change
Attitude change
Communication
Group processes
Group decision making
Comparative values
Comparative attitudes
Cross-cultural analysis
Organization
system
Anthropology
Organizational culture
Organizational environment
Political science
Conflict
Intraorganizational politics
Power
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The Rigour of OB

OB looks at consistencies
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OB is more than common sense

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What is common about behaviour, and helps
predictability?
Systematic study, based on scientific evidence
OB has few absolutes
OB takes a contingency approach

Considers behaviour in context
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Beyond Common Sense

Systematic Study

Looking at relationships, attempting to attribute
causes and effects and drawing conclusions based on
scientific evidence
Behaviour is generally predictable
 There are differences between individuals
 There are fundamental consistencies
 There are rules (written & unwritten) in almost every
setting

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Exhibit 1-1 Challenges Facing the
Workplace
Organizational Level
•
•
•
•
Productivity
Developing Effective Employees
Global Competition
Managing in the Global Village
Group Level
• Working With Others
• Workforce Diversity
Workplace
Individual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically
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Exhibit 1-3
Basic OB Model, Stage I
Organization systems level
Group level
Individual level
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Exhibit 1-4
Basic OB Model, Stage II
Human resource
policies and
practices
Organizational
culture
Organization
structure
and design
Work design
and
technology
Organization
Systems Level
Change and
stress
Group
decision making
Communication
Leadership
Group
structure
Work
teams
Productivity
Absence
Other
groups
Conflict
Turnover
Power and
politics
Group Level
Human
output
Satisfaction
Organizational
commitment
Biographical
characteristics
Personality
Values and
attitudes
Human
input
Ability
Workplace
interaction
Perception
Motivation
Individual
decision making
Individual
Differences
Individual Level
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Exhibit 1-5
Competing Values Framework
External Focus
Internal Focus
Flexibility
Control
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Competing Values Framework

Internal-External Dimension


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Inwardly toward employee needs and concerns and/or production processes and
internal systems
or
Outwardly, toward such factors as the marketplace, government regulations, and
the changing social, environmental, and technological conditions of the future
Flexibility-Control Dimension


Flexible and dynamic, allowing more teamwork and participation; seeking new
opportunities for products and services
or
Controlling or stable, maintaining the status quo and exhibiting less change
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Basic OB Model
Organization systems level
Group level
Individual level
Independent Variables
Individual-Level Variables (Leadership, Power, Attitudes)
Group-Level Variables (Diversity, Groups, Teams, Conflict)
Organizational Systems-Level Variables (Culture, Structure, Design,
Change)
Dependent Variables
Productivity
Absenteeism Turnover
Job Satisfaction
Motivation Well-being
Safety
Effectiveness
Efficiency Ethics
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Summary & Implications

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OB is a field of study that investigates the impact of
individuals, groups, and structure on behaviour within an
organization.
OB focuses on improving productivity, by understanding
employees and why they behave in the ways they do.
Behavior of organizations, groups, & individuals can be
predicted, but you have to understand the circumstances.
To study OB, one needs to move from an intuition and
common sense approach to a systematic study.
OB uses systematic study to improve predictions of
behaviour.
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Why Study
Organizational Behavior?
Success isn’t a destination – it’s a process. And the margin
between successes is often small. Learn the principles of
defining and achieving success in your own life and begin the
journey today.
This journey begins with understanding the behaviors between
the leader, the followers, and the organization.
This is also a leadership course of study. To be successful leader,
one needs to understand the behaviors of people, organizations,
and the situation.
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Levels of Analysis



Organization level
Group level
Individual level
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Basic OB Model


Dependent Variables
Independent Variables
Organizational Level
Group Level
PRODUCTIVITY
ABSENTEESIM
TURNOVER
Individual Level
JOB SATISFACTION
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Elements of ob
People
.Individuals
.Group
Environment
.Government
.Competition
.Social
Structure
.Jobs
.Relationship
OB
Technology
.Machinery
.Copm. hard & soft.
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5
Insert Figure 1.2 here
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Contribution to various
disciplines of ob
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Contributing Disciplines to the
OB Field

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Psychology
Sociology
Social Psychology
Anthropology
Political Science
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Psychology
Sociology
Social
Psychology
Anthropology
Political science
Perception
Personality
Motivation
Training
PA
Job Satisfact.
Individual
Group ,Team
Communi.
Conflict
Org.change,
structure
Attit.& beh.
Change
Group process &
decision making
Group
Study of OB
Indi.Org.culture &
Env.
Org. Power
Politics
Organizations
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ORIGINS OF ORGANIZATIONAL
BEHAVIOR
 Psychology. Psychological theories have helped
us explain and predict individual behavior.
Many of the theories dealing with personality,
attitude, learning, motivation, and stress
have been applied in Organizational Behavior to
understand work-related phenomena such as job
satisfaction, commitment, absenteeism,
turnover, and worker well-being.
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Sociology


Sociologists, studying the structure and function of small
groups within a society have contributed greatly to a more
complete understanding of behavior within organizations.
Taking their cue from Sociologists, scholars in the field of
Organizational Behavior have studied the effects of the
structure and function of work organization on the behavior
of groups, as well as the individuals within those groups.
Many of the concepts and theories about groups and the
processes of communication, decision making, conflict,
and politics used in Organizational Behavior, are rooted in
the field of Social 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
E X H I B I T 1–3 (cont’d)
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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
E X H I B I T 1–3 (cont’d)
44

Political Science
The field of Political Science has helped us
understand how differences in preferences and
interests lead to conflict and power struggles
between groups within organizations.
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
Anthropology
Organizational Behavior draws on the field of
Anthropology for lessons about how cultures (
corporate culture) and belief systems develop.
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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
E X H I B I T 1–3 (cont’d)
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8
Managerial Roles
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Manager: Any person who supervises one or more
subordinates.
Role: A set of behaviors or tasks a person is
expected to perform because of the position he or
she holds in a group or organization.
Managerial roles identified by Mintzberg (see
Table 1.1):
Figurehead
Liaison
Disseminator
Entrepreneur
Resource allocator
Leader
Monitor
Spokesperson
Disturbance handler
Negotiator
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9
Managerial Skills



Conceptual Skills: The
ability to analyze and diagnose
a situation and distinguish
between cause and effect.
Human Skills: The ability to
understand, work with, lead,
and control the behavior of
other people and groups.
Technical Skills: Job-specific
knowledge and techniques.
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10
Challenges for Organizational Behavior
and Management
❶
❷
❸
❹
❺
Using new information technology to enhance
creativity and organizational learning.
Managing human resources to increase
competitive advantage.
Developing organizational ethics and well-being.
Managing a diverse work force.
Managing the global environment.
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personality
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Nature of Personality
 Personality traits
 Reflects individuals differences
 Personality can change
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determinants
Individual
personality
Biological
Family &
Social
Cultural
Situational
Others
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biological
 Heredity
 Brain
 Physical features
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Cultural factors
Situational factors
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Family & Social Factors
Home & Family environment
Social group
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Others
Interest
Motives
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Big Five Traits of Personality
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 Agreeableness
 Extroversion
 Emotional stability
 Conscientiousness
 Openness
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agreeableness

Agreeableness
High
Low
Agreeableness- Cooperative, warm, caring,
good-natured, trusting
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Extroversion

Extroversion
Extroversion
Introversion
Extroversion- Social, outgoing, talkative,
assertive, forgiving, understanding
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Emotional stability

Emotional
High
Low
Emotional stability- happy, unworried,
secure, calm
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Conscientiousness

Conscientiousness
High
Low
Conscientiousness- Dependable, hardworking,
organized, self-disciplined,
responsible
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Openness

Openness
More
Less
Openness- Creative, Cultured, Flexible,
imaginative
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perception
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 Human being are constantly attacked by
numerous sensory including noise, sight,
smell, taste etc.
 The critical question is the study of
perception is “why the same universe is
viewed differently by different persons?”

The answer is the perception. Different
people perceive the universe differently.
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 Perception is the process through which
the information from outside environment
is selected, received, organize and
interpreted to make it meaningful to us.
 Acc. To the Joseph Reitz:
perception includes all those
processes by which an individual receive
information about his environment –
seeing, hearing, feeling, tasting and
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process
Perceptual Inputs
Perceptual Mechanisms
Receiving
Perceptual
Outputs
Selecting
Individual
Actions
Organizing
Interpreting
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 Figure and Group-Figure is perceived to
dominate and more attention is paid to it,
while ground is given less attention and is
kept in the background.
 Simplification- Whenever people is
overloaded with the information, they try
to simplify it to make it more meaningful
and understandable. Perceiver subtract less
salient information and concentrate on
more important one.
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action
 The last phase of
perceptual process is
that acting in relation to what has been
perceived. This action may be covert or
overt.
 Covert- Change in attitude, opinions,
feeling, values and impression formation
resulting from the perceptual input.
 Overt- The overt action may be in the
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Factors that influence the
perception
Factors in situation
Social setting,
Organizational setting
Factors in perceiver
Needs and Motives,
Experience, Current
psychological state
Perception
Factors in target
Status, Size,
Contrast,
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Internal factors
 Needs and Motives- People’s perception is
determined by their inner needs. A feeling of
tension and discomfort when one thinks he is
missing something or requires something.
Similarly people with different needs selects
different items to respond.
 Experience- It have a constant bearing on
perception. Successful experience boost the
perception ability whereas failure erodes self-
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 Current psychological state- The
emotional and psychological states of an
individual are likely to influence how
things are perceived. If a person is
depressed, he is likely to perceive the same
situation differently than if he is elated.
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External factors
 Status- Perception is also influenced by
the status of the perceiver. High status
people can exert influence on perception
of employees than low status people. For
example if we introduce the CEO or the
peon of the organization then w
remember only the name of the CEO.
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 Contrast- Stimuli contrast with the
surrounding environment. A contrasting
effects can be caused by color or any other
factor that is unusual.
 Size- The bigger size of
the perceived
stimulus, the higher is the probability that
it is perceived. Size attracts the attention
of an individual.
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