ORGANIZATIONAL
BEHAVIOR
(MGT-503)
By
Mohammed Aliye
(LLM, MA in PPM and LLB)
CHAPTER-ONE
Introduction to
Organizational
Behavior
2
CONTENTS
1.1. Organization and Management : Review
1.1.1. Organization defined
1.1.2. Management
 Manager’s functions, roles and skills
1.2. Organizational Behavior
1.2.1. Definition
1.2.2. Contributing disciplines
1.2.3. Challenges and opportunities of OB
1.2.4. Importance of OB
1.2.5. Models of OB
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1.1. ORGANIZATION AND MANAGEMENT :
REVIEW
1.1.1. What is Organization?



Comes from Greek Organon: meaning a tool
or instrument.
Therefore , organizations are tools or
instruments to meet goals, objectives, to
carry out tasks.
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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CONT’D
 Elements
of Organization are people,
objective, interactions, structure, and
influence
 Organizations
are structured processes in
which people interact and influence each
other in order to achieve goals or objectives.
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1.1.2. MANAGEMENT



What is Management ?
Harold Koontz says, "Management is the art of
getting things done through and within formally
organized group.“
Management is the creation and maintenance of
an internal environment in an enterprise where
individuals, working in groups, can perform
efficiently and effectively toward the attainment
of group goals.
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I.
FUNCTIONS OF MANAGEMENT
Planning
Controlling
Select goals
& ways to
attain them
Organizing
Monitor
activities &
make
corrections
Assign
responsibility for
tasks
Leading
Use influence to
motivate
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MANAGEMENT
Used to focus on direction and control
 But now it more involved with support and facilitation
and manager considered as a “coach”.
 Thus manager focuses on efficiently and effectively
utilizing intellectual capital of an organization.
 Intellectual capital includes ; knowledge ,expertise and
dedication of an organization’s work force.
 The management of intellectual capital is necessary in
order to get the most out of an organization’s material
resources and achieve organizational goals
 In practice manager achieves organizational goals
through organizing ,planning ,directing and controlling.
 To perform these function manager takes on several
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roles for which he/she needs a skills

MANAGERIAL SKILLS



Conceptual skill: It involves viewing the
organization from broad perspective and
coordinating or integrating organizational
activities. Strategic issues, policy, lobbying
and community reaction are very important at
top level than the lower level.
Human skill: It is the ability to resolve
conflict, lead, and communicate with others.
This skill is nearly equally important at all
levels.
Technical skill: It deals with specialized
knowledge applied to specific task and it is
important at lower levels than top levels.
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MANAGEMENT ROLES (ACCORDING TO
MINTZBERG)
Interpersonal
Roles
Informational Decisional
Roles
Roles
• Figure head
• Monitor (gathering • Entrepreneur
(Ceremonial/signing)
information)
(innovator)
• Leader
• Liaison
• Disseminator
(internal)
• Disturbance
handler
• Spokes person
(external)
• Resource
allocate
• Negotiator
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1.2.1. What is OB?

Organizational behavior is the systematic study of
actions and attitudes that people exhibit within
Organizations.
•
Systematic: It is not based on intuition or gut feeling,
it uses scientific evidence, measurable and
interpreted in a rational manner.
•
Actions: It studies actions such as productivity,
absenteeism, and turnover.
•
Attitudes: It studies attitudes of people such as job
satisfaction.
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 OB
is . . . a field of study that investigates how
individuals, groups and structure affect and
are affected by behavior within organizations, for
the purpose of applying such knowledge toward
improving an organization’s effectiveness.
 OB
focuses on improving productivity, employee
job satisfaction and organizational commitment,
and on reducing absenteeism and turnover.
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Psychology
Individual
Sociology
Social
Psychology
Group
The Study of
Organizational
Behavior
Anthropology
Organization
Political
Science
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OB is a field of study with three different levels and
perspectives: individuals, groups, organisation.
Individual
• Value
• Attitude
• Personality
Individual Level
• Perception
• Emotion
• Learning
• Ethics
• Satisfaction
• Motivation
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OB is a field of study with three different levels and
perspectives: individuals, groups, organisation.
Groups
Group Level
• Group dynamics
• Communication
• Leadership
• Conflict
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OB is a field of study with three different levels and
perspectives: individuals, groups, organisation. is.
Organization
Organizational Level
• Power & Politics
• Organizational Design
& structure
• Organizational Culture
• Organizational Change
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The goals of organizational behavior are to:
Understand
organizational
events
Organizational
Behavior
Influence
organizational
events
Predict
organizational
events
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Why study OB?
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 so our valued
employees? resign?
• Influence or Control of organisational events up with ideas and
recommendations for organisational action. Example: What
can I do to make my subordinate to put out more?
• Predict organisational events. It seek what outcomes will result
from a given action. Example: How would my subordinates
behave to the installation of a new computer?
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19
Psychology
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Sociology
21
Social Psychology
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Anthropology
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Political Science
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1.2.5. Challenges and opportunities of OB
Understanding organizational behavior has never been
more important for managers. Take a quick look at the
dramatic changes in organizations.
Changes in :
 employee
 Task environment due to technology
 Economic environment
 Globalization
 Generally today’s challenges bring opportunities for
managers to use OB concepts.
 Most critical issues confronting managers for which OB
offers solutions are:

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Responding to economic pressure
2. Responding to globalization
3. Working with people from different
culture
4. Managing work force diversity
5. Improving customer service
6. Improving peoples skills
7. Stimulating innovation and change
8. Coping with temporariness
9. Working in networked organization
10. Improving ethical behavior
1.
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1.2.6. Models of OB
 Organizations
differ in the quality of
organizational behaviour they develop
 These differences are substantially caused by
different models of organizational behaviour
that dominant management's thought in each
organization.
 The model that a manager holds usually
begins with certain assumptions about people
and thereby leads to certain interpretations of
organizational events.
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OB MODELS CONT…
Four models of organizational behaviour are:
A. Autocratic model
B. Custodial model
C. Supportive model
D. Collegial model

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A. AUTOCRATIC MODEL
the manager has the power to command his
subordinates to do a specific job.
 Management believes that it knows what is best
for an organization and therefore, employees are
required to follow their orders
 The psychological result of this model on
employees is their increasing dependence on their
boss.
 Its weakness is its high human cost

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B. CUSTODIAL MODEL
focuses on better employee satisfaction and
security
 Organizations satisfy the security and welfare
needs of employees
 This model leads to employee dependence on an
organization rather than on boss

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C. SUPPORTIVE MODEL
The supportive model depends on 'leadership'
instead of power or money
 Through leadership, management provides a
climate to help employees grow and accomplish
in the interest of an organization.
 This model assumes that employees will take
responsibility, develop a drive to contribute and
improve them if management will give them a
chance
 Since management supports employees in their
work, the psychological result is a feeling of
participation and task involvement in an,
organization

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D. COLLEGIAL MODEL
The term 'collegial' relates to a body of persons
having a common purpose.
 Management is the coach that builds a better team
 The management is seen as joint contributor rather
than as a boss
 The employee response to this situation is
responsibility.
 The psychological result of the collegial approach for
the employee is 'self-discipline'.
 In this kind of environment employees normally feel
some degree of fulfillment and worthwhile
contribution towards their work.

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1.2.7. OB STUDY MODEL


It proposes three types of variables (inputs, processes,
and outcomes) at three levels of analysis (individual,
group, and organizational).
The model proceeds from left to right, with inputs
leading to processes and processes leading to
outcomes. Notice that the model also shows that
outcomes can influence inputs in the future.
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OB STUDY MODEL
Inputs
Individual level
Diversity
Personality
Value
Inputs
Group level
Group
structure
Group role
Group
responsibility
Inputs
Organizational
level
Culture
Structure
Process
Individual level
Emotion and mood
Motivation
Perception
Decision making
Process
Group level
Communication and
leadership
Power and politics
Conflict and
negotiation
Process
Org. level
Human resource
Change process
Outcome
Individual level
Attitude and stress
Task performance
Citizenship behavior
Withdrawal behavior
Outcome
Group level
Group cohesion
Group functioning
Outcome
Organ. level
Productivity
Survival
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INPUTS
are the variables like personality, group structure, and
organizational culture that lead to processes. These
variables set the stage for what will occur in an
organization later
 Many are determined in advance of the employment
relationship.

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PROCESSES
are actions that individuals, groups, and
organizations engage in as a result of inputs and
that lead to certain outcomes
 At the individual level, processes include
emotions and moods, motivation, perception, and
decision making.
 At the group level, they include communication,
leadership, power and politics, and conflict and
negotiation.
 Finally, at the organizational level, processes
include human resource management and change
practices.

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OUTCOMES
are the key variables that you want to explain or
predict, and that are affected by some other variables.
 individual-level outcomes are attitudes and
satisfaction, task performance, citizenship behavior,
and withdrawal behavior.
 At the group level, cohesion and functioning are the
dependent variables.
 Finally, at the organizational level outcome are overall
profitability and survival

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