ORGANIZATIONAL BEHAVIOR T E N T H E D I T I O N
OBJECTIVES AFTER STUDYING THIS CHAPTER AND LISTENING TO MY LECTURE,I HOPE THTAT YOU WILL BE ABLE TO: 1. Define organizational behavior (OB). 2. Describe the manager’s functions, roles andLEARNING skills. 3. Identify the contributions made by major behavioral science disciplines to OB. 4. List the major challenges and opportunities for managers to use OB concepts. 5. Compare the three levels of analysis in the OB model.
What is Organizational Behavior?It is a field of study that investigates the impactthat individuals, groups and structure have onbehavior within organizations, for the purpose ofapplying such knowledge towards improving anorganization’s effectiveness.
Example - What is Organizational Behavior? Example: Microsoft understands how organizational behavior affects an organization’s performance. So the company maintains good employee relationships by providing a great work environment, generous, benefits and challenging jobs. Other benefits such as laundry services, free grocery delivery and take home meals, helps employees focus on their work. According to Microsoft, the employee loyalty and productivity are high, contributing to the company’s growth to $44billion in revenue since its founding in 1975.
What Managers Do?Managers- Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. Managerial Activities • Make decisions • Allocate resources • Direct activities of others to attain goals
Organizational levels Top Managers Middle Managers First-line ManagersNon-managerial Employees OR Operatives
Identifying ManagersNon-Managerial / Operatives- People who are directly on a job ortask and have no responsibility for overseeing the work of others.First-line managers - manage the work of non-managerialindividuals or also known as operative employees, who aredirectly involved with the production or creation of theorganization’s productsMiddle managers - all managers between the first-line level andthe top level of the organization and manages the first-linemanagersTop managers - responsible for making decisions about thedirection of the organization and establishing the plans and goalsthat affect the entire organization
What is Management?Management-The process of coordinating work activities so that they arecompleted efficiently and effectively with and through otherpeople.Definitions Process - represents ongoing functions or primary activitiesengaged in by managers Coordinating - distinguishes a managerial position from a non-managerial one Efficiency - getting the most output from the least amount ofinputs. Meaning “doing things right”. Effectiveness - completing activities so that organizational goalsare attained. Meaning “doing the right things”.
What is Management?Efficiency (Means) Effectiveness (Ends) Resource Goal Usage Attainment Low Waste High Attainment Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness)
Management Functions- It is a set of ongoing decisions and work activities in which managers engage as they plan, organize, lead and control.- This functions are usually done in continuous manner. Planning Organizing Management Functions Controlling Leading
Management Functions (cont’d)Planning- Defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.- There are evidence that indicates that this function is the one that increases the most as managers move from lower-level to midlevel management.
Management Functions (cont’d)Organizing- Managers are responsible for designing an organization’s structure.- Includes 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 made.
Management Functions (cont’d)Leading- Every organization contains people and its manager’s job to direct and coordinate people.- A function that includes motivating employees, directing the activities of the others, select the most effective communication channels or resolve conflicts among with employee.
Management Functions (cont’d)Controlling- Managers should ensure things are going as they should and must monitor organization’s performance. Actual performance are compared with the previously set goals. So if there is any deviations, it is manager’s job to get the organization back on track.- The process of monitoring performance, comparing it with goals and correcting any significant deviations.
Mintzberg’s Managerial Roles The Mintzberg concluded that managers perform 10 different, highly interrelated roles or sets of behaviors which is attributable to their jobs. These 10 roles can be grouped into 3 primary categories:(i) Interpersonal (iii) Decisional- Figurehead - Entrepreneur- Leader - Disturbance handler- Liaison - Resource Allocator - Negotiator(ii) Informational- Monitor- Disseminator EXHIBIT 1-1a- Spokesperson
Mintzberg’s Managerial Roles Interpersonal - involve people and duties that are ceremonial and symbolic in nature Figurehead - Symbolic head obliged to perform number of routine duties of legal or social nature Leader - Responsible for motivation of subordinates, responsible for staffing, training, and associated duties. This role includes hiring, training, motivating and disciplining employees. EXHIBIT 1-1a
Mintzberg’s Managerial Roles Liaison - Maintains self developed network of outside contacts and informers who provide favors and information - This can be described as contacting outsiders to provide the manager with information. This may be individuals or group inside or outside the organization. EXHIBIT 1-1a
Mintzberg’s Managerial Roles Informational - receiving, collecting, and disseminating information Monitor - seeks and receives wide variety of internal and external information to develop thorough understanding of organization and environment Disseminator - Transmits information received from outsiders and insiders to members of the organization Spokesperson - Transmits information to outsiders on organization plans, EXHIBIT 1-1a policies, actions, results
Mintzberg’s Managerial Roles Decisional - revolve around making choices Entrepreneur - searches organization and environment for opportunities and initiates” improvement projects” to bring about the changes. Disturbance handler - Responsible for corrective action when organization faces unexpected disturbances Resource Allocator - Responsible for allocation of organizational human, physical and monetary resources of all kinds EXHIBIT 1-1a
EXAMPLE : Mintzberg’s Managerial Roles EXHIBIT 1-1a
Management SkillsThere are 3 essential management skills : Technical Skills Human Skills Conceptual Skill
Management Skills Technical Skills - Encompass the ability to apply specialized knowledge or expertise. - E.g. Skill of professionals such as oral surgeons or civil engineers, typically focus on their technical skills. Human Skills - Ability to work with, understand and motivate other people, both individually and in groups. All Managers should have this skills to communicate, motivate and delegate since they get things done through people. Conceptual Skill - Mental ability to analyze and diagnose complex situations. For instances, decision making requires managers to identify problems, develop solutions, evaluate and select
Effective Versus Successful Managerial Activities (Luthans)There are 4 managerial activities:3. Traditional management • Decision making, planning, and controlling4. Communications • Exchanging routine information and processing paperwork5. Human resource management • Motivating, disciplining, managing conflict, staffing, and training6. Networking • Socializing, politicking, and interacting with others
Contributing Disciplines to the OB FieldThere are 4 major contributions to the study of OB: Psychology Social Psychology Sociology Anthropology EXHIBIT 1-3a
Contributing Disciplines to the OB Field Psychology - The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. - Psychologist concern themselves with studying and attempting to understand individual behavior. - Organizational psychologist are concerned themselves with the problems of fatigue, boredom, and other factors relevant to working conditions that could impede efficient work performance. Contribution to OB - Learning, motivation, personality, emotions, perception, training, leadership effectiveness, job satisfaction Individual decision making, performance appraisal E X H I B I T 1-3a attitude measurement, employee selection, work design, and work stress
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. - Social psychologists have made important contributions to study of group behaviors. - We can see psychologists making significant contributions in the areas of measuring, understanding and changing attitudes, communication patterns and building trust, with the changes done in one of the major area by the Social psychologists Contribution to OB - Behavioral change, Attitude change, Communication, Group processes, Group decision making. EXHIBIT 1-3b
Contributing Disciplines to the OB Field (cont’d) Sociology - The study of people in relation to their fellow human beings. It studies the people in relation to their social environment or culture. - Sociologists have contributed to OB through their study of group behavior and organizational system. Contribution to OB - Group dynamics, Work teams, Communication, Power Conflict, Intergroup behavior, Formal organization theory Organizational technology, Organizational change Organizational culture. EXHIBIT 1-3c
Contributing Disciplines to the OB Field (cont’d) Anthropology - The study of societies to learn about human beings and their activities. - Anthropologists have contributed to OB through their study of organizational system. - Anthropologists work on cultures and environments which has helped to understand differences in fundamental values, attitudes and behavior between people in different countries and within different organizations. Contribution to OB - Organizational culture, organizational environment, comparative values, comp EXHIBIT 1-3d
Challenges and Opportunity for OB Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Improving Customer Service Improving People Skills Coping with “Temporariness” Working in Networked organizations Helping Employees Balance Work/Life Conflicts Creating a positive work environment Improving Ethical Behavior
Challenges and Opportunity for OB Responding to Globalization - organizations are no longer constrained by national borders. - e.g. Burger king is owned by a British firm and ExxonMobil is an American company but almost 75% of their revenue is from sales outside the United States. - Due to this, the manager’s job has changed due to the below: (i) Increased foreign assignments (ii) Working with people from different cultures (iii) Overseeing movements of jobs to countries with low-cost labor.
Challenges and Opportunity for OB Managing Workforce Diversity - One of the most important and broad-based challenges currently faced by the organization is adapting to people who are different. - The terms that we use for describing this challenge is workforce diversity. - The globalization focuses on differences between people from different countries, workforce diversity addresses differences among people within given countries. - Workforce diversity means that organizations are becoming a more heterogeneous mix of people in terms of gender, age, race and ethnicity. A diverse workforce, for instance, includes women, people of color, the physically disabled, senior citizens and domestic partners.
Developing an OB Model - A model is an abstraction of reality: a simplified representation ofsome real-world phenomenon.- There are 3 level of analysis in OB model and all the three basiclevels are analogous to building blocks, where each level isconstructed on the previous level. EXHIBIT 1-6
Types of Study Variables- There are 2 types: Dependent Variables (Y)-It is the key factor that need to be explained or predicted andaffected by an independent variable.- It is the what the OB researched want to predict or explain on theindependent variable. Independent Variables (X)-It is the presumed cause of some change in a dependent variable.- It is the variable that OB researches manipulate to observe thechanges in dependent variables.
The Dependent Variables (cont’d)Productivity-It is a performance measure thatincludes effectiveness andefficiency.-It also transforms inputs tooutputs at lowest cost.Effectiveness- Achievement of goalsEfficiency- Meeting goals at a low cost.
The Dependent Variables (cont’d)Absenteeism Turnover- Defined as failure to report to - It is the voluntary andwork. involuntary permanent withdrawal from an- It is a huge cost and organization.disruption to employers. - A high turnover rate results in- With this, it is difficult for an increased recruiting, selectionorganization to operate and training costs.smoothly and to attain itsobjectives if employees fail to - In addition, a high rate ofreport to their jobs. turnover can disrupt the efficient running of an organization when knowledgeable and experienced personnel leave and replacements needed.
The Dependent Variables (cont’d)Deviant workplace behavior Organizational Citizenship Behavior (OCB)- This is also called asantisocial behavior or - It is the discretionary behaviorworkplace incivility. that is not part of an employee’s formal job requirements but that- It is the voluntary behavior promotes the effectivethat violates significant functioning of the organization.organizational norms and indoing so, threatens the well - Successful organizations needbeing of the organization or its employee’s who will do moremembers. than their usual job duties, those who will provide- This is an important concept performance that is beyondbecause it is a response to expectations.dissatisfaction and employeesexpress this dissatisfaction inmany ways.
The Dependent Variables (cont’d)Job satisfaction-It is a positive feelings about one’s job resulting from anevaluation of its characteristics.- It is a general attitude towards one’s job, the difference betweenthe amount of reward workers receive and the amount theybelieve they should receive.
The Independent VariablesIndependent Variable-It is the presumed cause of some change in a dependentvariable. Independent VariablesIndividual-Level Group-Level Organization Variables Variables System-Level Variables