1. Chapter # 1
Organizational Behavior
Importance of interpersonal skills:
Pre-1980:
The business schools emphasized technical
education like: Economics, Accounting, Finance,
And Quantitative techniques

2. Post 1980
• The business faculty was convinced that
without realizing human behavior it is not
possible to develop effective management
practices and retaining of employees with the
organization.
• Not doubt technical skill are necessary but
they are not enough to succeed in
management.

3. What managers do?
• Manager defined- the person gets things done
through other people.
• Organization defined- Consciously coordinated
social unit composed of two or more people to
achieve some specific goal or set of goals.
1. What functions a manager performs in the
organization?
2. What roles he plays in the organization?
3. What Skills he needs to do the above two?
4. What activities he execute?

4. Functions of the Management
Planning:
1. defining goals
2. establish strategy to achieve goals
3. integrate and coordinate activities
Organizing:
1. What tasks to be done
2. Who will to do them
3. How they are to be grouped
4. Who report to whom and
5. Where decisions are to be made

5. Functions of management continue
Leading:
1. Motivate employees
2. Direct activities of others
3. Resolving conflicts among members
Controlling:
1. Monitoring the organization’s performance
2. Comparing the actual performance and set goals
3. Identifying the deviations
4. Making corrections

6. Roles of the Management
• Interpersonal Roles:
1. Figurehead- routine duties of social and legal
nature.
2. Leader- responsible for motivation and
direction of employees.
3. Liaison- Maintaining network of outside
contacts who provide favors and information.

7. Management roles continue
Informational Roles:
1. Monitor-nerve center of int-ext. info.
2. Disseminator-transmits info, to members of org.
3. Spokesman-to outsiders for plans, policies, actions and
results
Decisional Roles:
1. Entrepreneur-searches opportunities & initiate change
2. Disturbance Handler-corrective actions to handle crisis
3. Resource Allocator-approves org- significant decisions
4. Negotiator-responsible to represent in major negotiations

8. Managerial Activities
1. Traditional:
-decision making, planning and controlling.
2. Communication:
-exchanging routine information and processing
paperwork.
3. HRM:
-motivating, disciplining, managing conflicts,
staffing, and training.
4. Networking:
-socializing, politicking and interacting with
outsiders

9. Management skills
There are three skills needed for a manager to
be an effective manager:
1. Technical skills- ability to apply specialized
knowledge or expertise
2. Human skills-ability to work with,
understand, motivate both individuals and
groups
3. Conceptual skills-mental ability to analyze
and diagnose complex situations.

10. Definition of Organizational Behavior
• A field of study that investigates the impact
that individuals, groups and structure have on
behavior within organizations, for the purpose
of applying such knowledge toward improving
an organization’s effectiveness.

11. A Systematic Study
Looking at relationships, attempting to attribute
causes and effects, and drawing conclusions based
on scientific evidence.
EBM – Evidence-based management.
Basing managerial decisions on the best available.
Intuition- a gut feeling not necessarily supported by
research i.e. “why I do what I do”
The trick, of course, is to know when to go with
your gut (Jack Welch).

12. Disciplines that Contribute to OB
1. Psychology: the science that seeks t
measure, explain, and sometimes change the
behavior of humans and other animals.
2. Social Psychology: an area of psychology that
blends concepts from psychology and
sociology, and that focuses on the influence
of people on one another

13. Disciplines that Contribute to OB
continued
3. Sociology: the study of people in relation to
their social environment or culture.
4. Anthropology: the study of societies to learn
about human beings and their activities.

14. Challenges & Opportunities of OB
• Responding to Globalization:
the organizations are working across
boundaries of different nations, Japanese are in
US, Americans are working in China, Indians are
working Japan and Chinese are working in a
large number of countries.
The different challenges were emerged with the
advent of multinationalization like:

15. Challenges & Opportunities of OB
1. Increased Foreign Investment- international
appointments and back home syndrome.
2. Working with People from Different Cultures
Change in life style, values, geography and
religion shape them.
3. Coping with Anti-capitalism.
4. Low cost of labor in less developed countries.
5. Managing People during time of terror

16. Managing Diversity
1. Gender
2. Race
3. National Origin
4. Age
5. Disability
6. Domestic Partner
7. Religion
8. Changing U.S. Demographics
9. Implications- Human beings are not alike you
have to treat who they are

17. Challenges & Opportunities of OB
1. Improving Quality and Productivity
2. Improving Customer Service
3. Improving People Skills
4. Stimulating Innovation and Change
5. Coping with “Temporariness”
6. Working in Networking
7. Working in Networked Organizations
8. Helping Employees Balance their work-life
Conflicts
9. Creating a Positive Work Environment.

18. Dependent Variables in OB
The dependent variable is an outcome as
the effect some (independent varialbes) other
factors. The scholars historically tended to
emphasize some dependent variables.
In OB primary variables are:
productivity, absenteeism, turnover, and job
satisfaction.
Two more variables are added to OB
recently: deviant workplace behavior and
organizational citizenship behavior

19. Dependent Variables in OB (continued)
1. Productivity: A performance measure that
includes effectiveness and efficiency.
2. Absenteeism: A failure to report to the work.
3. Turnover: Voluntary and involuntary permanent
withdrawal from organization.
4. Deviant Workplace Behavior: Voluntary behavior
that violates significant organizational norms
and , in so doing, threatens the well-being of the
organization or its members.

20. Dependent Variables in OB (continued)
5. Organizational Citizenship Behavior (OCB):
Discretionary behavior that is not part of
an employee’s formal job requirements
but that nevertheless promotes the
effective functioning of the organization.
6. Job Satisfaction: A positive feeling about one’s
job resulting from an evaluation of its
characteristics.

21. Independent Variables
The presumed cause of some change in a
dependent variable. Independent variables are of
three types:
1. Individual-Level Variables: individual entering in
the organizations are like used cars—low mileage,
or well worn due to driven on rough roads- having
different biographical features: like age, gender,
marital status; Personality traits: like inherent
emotional framework, values and attitudes; and
basic ability levels.

22. Group-Level Variables
It is more than sum of the individual behaviors.
The behavior of the group is different from the
behavior when they are alone.
For example:
a). Acceptable standards of behavior.
b). The degree to which group members are
attracted to each other.

23. Organization System-Level Variables
System-level variables more than the sum of
the behavior of members of the organization.
1. Design of the Formal Organization
2. Internal culture of the organization
3. HRM policies and practices, that is, staffing,
training and development programs,
performance evaluation methods.
All have impact on the dependent variables or
outcomes of employees, teams and the structure.