6. What is an Organization?
An organization is
a collection of
people who work
together to
achieve individual
and organizational
goals.
5
7. 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.
6
8. 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
8
Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge
needed by an individual to be effective in most professional and managerial
positions
9. 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.
9
10. What is OB?
10
The study of human behavior in theworkplace
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:
Promote the well-being of
employees
Evaluate solutions proposed by consultants and managers
Predict what will happen in your organization
Influence the direction of yourorganization
11. Organizational Behaviour
11
. . . 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.
12. Why Do We Study OB?
12
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
16. Challenges and Opportunities
for OB
16
Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Coping with anti-capitalism backlash
low-
Overseeing movement of jobs to countries with
cost labor
Managing people during the war on terror
Managing Workforce Diversity
Embracing diversity
Changing U.S. demographics
Implications for managers
Recognizing and responding to differences
18. 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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19. Today’s Challenges in the
Indian Workplace
19
Challenges at the Individual Level
Job Satisfaction
Empowerment
Behaving Ethically
Challenges at the Group Level
Working With Others
Workforce Diversity
20. Today’s Challenges in the
Indian Workplace
20
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
21. Productivity
21
Productivity
A performance measure including effectiveness and
efficiency
Effectiveness
Achievement of goals
Efficiency
The ratio of effective work output to the input
required to produce the work
22. Effective Employees
22
Absenteeism
Failure to report to work
Turnover
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
23. Exhibit 1-2
Toward an OB Discipline
Social psychology
Psychology
Behavioural
science
Contribution Unit of
analysis
Output
Anthropology
Sociology
Political science
Study of
Organizational
Behaviour
Organization
system
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Workdesign
Work stress
Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Formal organization theory
Organizational technology
Organizational change
Organizational culture
Conflict
Intraorganizational politics
Power
Organizational culture
Organizational environment
Behavioural change
Attitude change
Communication
Group processes
Group decision making
Group
Comparative values
Comparative attitudes
Cross-cultural analysis
Individual
23
24. The Rigour of OB
24
OB looks at consistencies
What is common about behaviour, and helps
predictability?
OB is more than common sense
Systematic study, based on scientific evidence
OB has few absolutes
OB takes a contingency approach
Considers behaviour in context
25. Beyond Common Sense
25
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
26. Exhibit 1-1 Challenges Facing the
Workplace
Workplace
Organizational Level
• Productivity
• Developing Effective Employees
• Global Competition
• Managing in the Global Village
Group Level
• Working With Others
• Workforce Diversity
Individual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically
26
27. Exhibit 1-3
Basic OB Model, Stage I
Organization systems level
Group level
Individual level
27
28. Exhibit 1-4
Basic OB Model, Stage II
Ability
Human
input
Valuesand
attitudes
Motivation Individual
decisionmaking
Personality Perception
Biographical
characteristics
Leadership
Workdesign
and
technology
Organizational
culture
Changeand
stress
Group
decisionmaking
Other
groups Conflict
Powerand
politics
Work
teams
Individual Level
Group Level
Organization
Systems Level
Satisfaction
Organizational
commitment
Turnover
Absence
Productivity
Workplace
interaction
Human
output
Communication
Group
structure
Humanresource
policies and
practices
Organization
structure
and design
Individual
Differences
28
30. Competing Values Framework
30
Internal-External Dimension
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
32. Summary & Implications
32
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.
33. Why Study
Organizational Behavior?
33
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.
41. ORIGINS OF
ORGANIZATIONAL BEHAVIOR
41
Psychology. Psychological theories have
helped us explain and predict individual
behavior. Many ofthe 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.
42. Sociology
42
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 SocialPsychology.
43. Contributing Disciplines to the OB Field (cont’d)
E X H I B I T 1–3(cont’d)
43
Sociology
The study of people in relation to their fellow human beings
44. Contributing Disciplines to the OB Field (cont’d)
E X H I B I T 1–3(cont’d)
44
Social Psychology
An area within psychology that blends concepts from
psychology and sociology and that focuses on the influence
of people on one another
45. Political Science
45
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.
47. Contributing Disciplines to the OB Field (cont’d)
E X H I B I T 1–3(cont’d)
47
Anthropology
The study of societies to learn about human beings and
their activities
48. 8
Managerial Roles
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):
48
Leader
Monitor
Spokesperson
Disturbance handler
Figurehead
Liaison
Disseminator
Entrepreneur
Resource allocator Negotiator
49. 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.
49
50. 10
Challenges for Organizational Behavior
and Management
❶ Using new information technology to enhance
creativity and organizational learning.
❷ Managing human resources to increase
competitive advantage.
❸
❹
Developing organizational ethics and well-being.
Managing a diverse work force.
❺ Managing the global environment.
50
66. 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.
66
67. 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 67
69. 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.
69
70. 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 70
71. Factors that influence the
perception
Perception
Factors in situation
Social setting,
Organizational setting
Factors in perceiver
Needs and Motives,
Experience, Current
psychological state
Factors in target
Status, Size,
Contrast,
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72. 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- 72
73. 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.
73
74. 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.
74
75. 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.
75