2. After this session, you should be able to:
1-2
1. Define organizational behavior (OB).
2. Concept of OB
3. The factors influencing behaviour in organizations
4. Identify the major behavioral science disciplines that
contribute to OB.
5. Identify the three levels of analysis in OB.
6. Roles of OB.
7. Characteristics of OB.
8. Identify the challenges and opportunities managers have in
applying OB concepts.
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3. INTRODUCTION
WHAT IS OB?
⢠Is a field of study that deals with
actions/behaviour of people at work i.e.
relates organization with work and actions
and behavior.
It is all about peoplesâ behavior, attitudes and
emotions they exhibit within an organization.
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4. ContâŚ
ďOrganization Behavior commonly abbreviated
as OB has gone through a long history of
development as a concept and as a body of
knowledge(field of study).
ďOB has emerged as an important ingredient in
managing organizations.
ďOB comes from two words, Organization(s)
and Behavior(s).
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5. The concept of OB
⢠Therefore, OB is the study of;-
a) what people do in the
organization.
b) How behaviour effects the
performance of the organization.
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6. The Concept of OB
ď Mullins, L(2010) defines OB as concerned with the
study of the behavior of people within an
organizational setting.
ď It involves the understanding, prediction and control
of human behavior.
⢠It is the study of behavior of people and their
usefulness in improving organizational performance.
⢠Behavior is an important indicator and ingredient of
individual and organizational performance.
⢠Employeesâ behavior must be managed well to ensure
organizational effectiveness.
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7. Organization
Meaning:
ď˝Can simply be defined as a group of people
working together to achieve a common goal.
ď˝Gupta, CB (2010) viewed âorganisationâ in to
two
a) As a structure
ď Refers to network of relationships among
jobs and positions in an organisation.
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8. ContâŚ
b) As a Process( organizing)
ď˝ Refers to one of the important
management functions dealing with
determining, arranging, grouping and
assigning the activities to be performed
so as to achieve the organisational
objectives.
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11. b) Behavior
ďThe way in which one acts or conducts
oneself, especially towards others.
ďThe manner in which one acts or behaves.
ďThe actions or reactions of a person or animal
in response to external or internal stimuli.
ďA response of an individual or group to an
action, environment, person, or stimulus.
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13. Focal Points of OB
1-13
⢠Jobs
⢠Work
⢠Absenteeism
⢠Employment turnover
⢠Productivity
⢠Human performance
⢠Management
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14. Reasons for studying OB
i. Helps to understand self and others
better.
ii. Effective management of people
iii. Tackle human problems humanly
iv. Predict the human behaviour
v. Effective utilisation of human resources
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15. Implications for Managers
1-15
⢠OB helps with:
â Insights to improve people skills
â Valuing of workforce diversity
â Empowering people and creating a
positive work environment
â Dealing with change in the workplace
â Coping in a world of temporariness
â Creating an ethically healthy work
environment
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16. LEVELS OF OB (levels of
Analysis)
1. INDIVIDUALS (MICRO LEVEL)
âCentral part of OB
âBring their personality, skills and
attribute, values, needs and
expectations to the organization
âJob satisfaction
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18. 2. WORK GROUPS (MESO LEVEL)
⢠Essential to organisation work and
performance (team work).
⢠Formal or informal groups
⢠Often develop their own hierarchies and
leaders.
⢠Can influence individual behaviour and
performance.
⢠Diversity
Managerial understanding of group processes
can help the task of integration
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19. 3. HOW ORGANIZATIONS
(MACRO â LEVEL)
⢠Formal organisational structure is created by
management.
⢠It establishes internal relationships.
⢠It provides order and systems.
⢠It helps to direct the organisation towards the
achievement of organisational goals
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20. ContâŚ
âCustomer care
âInnovations
âQuality & productivity
âGlobalization
âWork environment
Organisational design can have an
impact on the behaviour of
people within organisations
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22. FIELDS OF OB
⢠PSCHOLOGY â change of human behavior
⢠SOCIOLOGY â study of people, social
environment and culture (in and from)
⢠POLITICAL SCIENCE
⢠SOCIAL PSYCHOLOGY â how people
influence one another
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23. ContâŚ
⢠ANTHROPOLOGY â Human &
activities they do.
⢠ECONOMICS â allocation of scarce
resource
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24. Contributing Disciplines to the OB Field
1-24
Psychology
Social Psychology
Sociology
Anthropology
Political science
Economics
Micro:
The Individual
Macro:
Groups &
Organizations
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25. CHARACTERISTIC OF OB
⢠Has a large size
⢠Organization â an aggregation of
human being/employees
⢠Involve human resource
⢠Complexity
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26. ContâŚ
⢠Conscious Rationality â It is
deliberately created with
purpose.
⢠Involve patterns of behavior
⢠It involve industrial psychology.
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27. ROLES OF OB
⢠Helps in making organization
structure
⢠Helps in defining authority, power
and status of employee.
⢠Help in making groups
⢠Helps in motivation
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28. ContâŚ
⢠Helps in leadership
⢠Helps in organization developing
⢠Helps in change
⢠Helps in control
⢠Helps in project selection
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29. NATURE OF OB
⢠A field of study and not a
disciplines.
Is a new field and combination of
various disciplines.
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30. ContâŚ
⢠Interdisciplinary Approach
⢠Applied science
⢠Normative and value centered â what ought
to be done.
⢠Humanistic and optimistic â people oriented
with positive in nature.
⢠Oriented towards organizational objectives.
⢠A total system approach.
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31. Models of OB
ďKeith Davis & JW Newton (1977) in their book
called Human Behaviour: Human behavior at
work, identified the following models of OB:-
1) Autocratic
2) Custodial
3)Supportive
4) Collegial
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32. 1. Autocratic
a) The basis of this model is power with a
managerial orientation of authority. The
employees in turn are oriented towards
obedience and dependence on the boss.
ď The employee need that is met is
subsistence.
ď The performance result is minimal
ď persons in power can demand work from
workers â pushing, directing and persuading
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33. ContâŚ
ď Tight control
ď Unfair practices including low payment and
exploitation
ď Employees put in minimum work and efforts
in the job to serve the basic needs of the
family
ď This model can work well in conditions like
e.g., organisational crisis/emergencies.
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34. 2. Custodial
The basis of this model is economic resources with a
managerial orientation of money.
ď The employees in turn are oriented towards security
and benefits and dependence on the organization.
ď The employeesâ need is security i.e. Job security and
economic satisfaction.
ď Workers depend more on the organisation and less on
the managers
ď Economic rewards are assured even if the employee
does not perform but performance may decline
because of job security.
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35. 3. Supportive
ď The basis of this model is leadership with a managerial
orientation of support.
ď The employees in turn are oriented towards job
performance and participation.
ď The employee need is status and recognition
ď The managers will create conducive and supportive
environment.
ď Managers tends to be more supportive rather than
being passive.
ď Normally, the organsiation will be characterised by
peace and harmony.
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36. 4. Collegial
The basis of this model is partnership with a
managerial orientation of teamwork.
ďThe employees in turn are oriented towards
responsible behavior and self-discipline.
ď Managers are considered to be colleagues
and facilitators rather than being considered
as bosses.
ďBoth employees and managers work together
to achieve organisational goals.
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37. Challenges and Opportunities for OB
1-37
ď¨Responding to Economic Pressures
ď¨Responding to Globalization
ď¨Managing Workplace Diversity
ď¨Improving Customer Service
ď¨Improving People Skills
ď¨Stimulating Innovation and Change
ď¨Coping with âTemporarinessâ
ď¨Working in Networked Organizations
ď¨Helping Employees with Work-Life Conflicts
ď¨Improving Ethical Behavior
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38. Responding to Economic
Pressures
1-38
⢠Effective management is especially important
during tough economic times.
⢠Employees look to their managers to provide
security during the instability of a recession.
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39. Responding to Globalization
1-39
⢠Increased foreign assignments
â Differing needs and aspirations in
workforce
⢠Working with people from
different cultures
â Domestic motivational techniques
and managerial styles may not work
⢠Overseeing movement of jobs to
countries with low-cost labor
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40. Managing Workforce Diversity
1-40
Workforce diversity:
organizations are
becoming a more
heterogeneous mix of
people in terms of gender,
age, race, ethnicity, and
sexual orientation
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41. Diversity Implications
1-41
âManagers have to shift their
philosophy from treating
everyone alike to recognizing
differences and responding to
those differences in ways that
ensure employee retention and
greater productivity while, at
the same time, not
discriminating.â
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42. Improving Customer Service & People
Skills
1-42
ď¨The majority of
employees in
developed and
developing nations
work in service jobs
and they must know
how to please their
customers.
ď¨People skills are
essential to succeed
in todayâs
organizations.
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43. Stimulating Innovation and Change
1-43
ď¨Flexibility
ď¨Quality
Improvement
ď¨Staying Competitive
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44. Temporariness
1-44
ď¨Jobs are constantly
changing
ď¨Skills need to be updated
for workers to stay on
target
ď¨Workers need to be able
to deal with change
ď¨Employees need to be
able to cope with
flexibility, spontaneity and
unpredictability
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45. Working in Networked Organizations
1-45
ď¨Managers must
adapt their skills
and
communication
styles to succeed
in an online
environment
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46. Helping Employees handle work-life conflict
1-46
The line between work
and non work has
blurred and managers
are increasingly dealing
with conflicts that arise
between work and life
away from work.
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47. Improving Ethical Behavior
1-47
⢠Ethical dilemmas and ethical choices
⢠Unethical practices â take bribesâŚ
⢠Code of ethics
⢠Seminars, workshops and training programs
⢠Fair treatment of employees
⢠Ethically healthy climate
⢠Promote a strong ethical mission
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48. Individual Assignment
⢠Trace the development OB in the World
⢠Discuss the contributions of the following in
the development of OB
a) Scientific Management
b) Administrative Theory
c) Bureaucratic Theory
d) Behavioral Theory
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Some key areas we will look at in this course are aspects of jobs and work and how they impact organizational effectiveness. We will also look at work aspects such as absenteeism, employee turnover and productivity to see how various theories or practices influence these behaviors. In addition, we will look at the intersection of human performance and management and how various practices can improve performance.
The OB Model is critical to your understanding of how organizations behave. In the remainder of this book we will be utilizing that model to look at behavior on an individual, group and organizational level.
Organizational Behavior (OB) is interdisciplinary in nature as it is an applied behavioral science. The theory in OB relies on contributions from multiple behavioral disciplines. These disciplines include Psychology, Social Psychology, Sociology and Anthropology.
In the workplace today there are many challenges and opportunities in the area of Organizational Behavior. Understanding OB has never been more important for managers as organizations are changing at a much more rapid pace than historically seen.
During economic difficulties the need for effective managers is heightened. Anyone can manage during good times, it is much tougher to manager through economic struggles. Often when there are economic pressures managers are forced to make decisions based on resource constraints. These situations may include laying off employees, motivating employees when there are limited resources and encouraging employees when they are stressed about their futures.
Organizations now exist in an environment with no national borders. As a result the managerâs job has changed. They need to have a broader perspective when making decisions.
As foreign assignments increase you will need to be able to manage a workforce that is different than what you may be used to and may bring different needs, aspirations and attitudes to the workplace.
You will also have individuals coming to work in your own country that come from different cultures, and you will need to find ways to accommodate their needs and help them assimilate to your workplace culture.
You may also need to do the difficult task of moving jobs outside of your country to a country with lower labor costs. This is a difficult process logistically but also emotionally for the workers who will be losing their jobs.
As the borders are disappearing we are seeing more and more heterogeneity in the workplace. Managers today need to embrace diversity and find ways to manage it effectively. The changing demographics have shifted management philosophy in a way that recognizes and utilizes differences to create productivity, profitability and welcoming cultures.
Managers must recognize differences and find ways to utilize those differences to improve organizational performance.
Most workers in developed nations will work in service-oriented jobs. It is critical to organizational success that workers improve their customer service and people skills.
Organizations must be innovative and able to change in order to succeed in the marketplace today. This includes a commitment to flexibility and quality improvement in order to stay competitive.
In a constantly changing environment workers have to be able to handle change, keep their skills updated and be able to be flexible.
As technology continues to become an integral part of organizational effectiveness workers will find that their communication styles and needs will change as well. Managers must stay on top of what is needed to motivate workers in this environment.
Work and life away from work continue to become intertwined as with the rise of technological communication we are available 24/7. Managers must face the reality that people bring their life at home with them to the office, and they must find ways to help workers deal with the conflict that arises.