This document provides an overview of organizational behavior and related concepts. It defines organizational behavior as the study and application of knowledge about how individuals and groups act in organizations. It discusses key theories like McGregor's Theory X and Theory Y. It also outlines common independent variables that can impact dependent variables in organizational behavior like productivity, absenteeism, and job satisfaction. Models of organizational behavior are presented, like autocratic, custodial, supportive, and collegial models.

1. OrganizationalOrganizational
BehaviorBehavior

2. • KHALID HUSSAIN CHOHAN,KHALID HUSSAIN CHOHAN, Tamgha-i-Tamgha-i-
Imtiaz (M)Imtiaz (M)
– MBA (“HR” and “Finance & Investment”)MBA (“HR” and “Finance & Investment”)
NUST Institute of Management SciencesNUST Institute of Management Sciences
– M.A (Economics)M.A (Economics)
Peshawar UniversityPeshawar University
– B.Sc. (Hons)- War StudiesB.Sc. (Hons)- War Studies
Balochistan UniversityBalochistan University
Contact:0321-5178693Contact:0321-5178693
E-mail: chohankh@gmail.comE-mail: chohankh@gmail.com
Facilitator

3. Introduction of StudentsIntroduction of Students

4. OrganizationOrganization
• Organizations are social entities,Organizations are social entities,
• That are goal directed,That are goal directed,
• Are designed as deliberately structured andAre designed as deliberately structured and
coordinated activity systems,coordinated activity systems,
• And are linked to external environment.And are linked to external environment.

5. Importance of OrganizationsImportance of Organizations
• Bring together resources to achieve desired goals andBring together resources to achieve desired goals and
outcomes.outcomes.
• Produce goods and services efficiently.Produce goods and services efficiently.
• Facilitate innovation.Facilitate innovation.
• Use modern manufacturing and computer technology.Use modern manufacturing and computer technology.
• Adapt to and influence changing environment.Adapt to and influence changing environment.
• Create value for owners, customers and employees.Create value for owners, customers and employees.
• Accommodate ongoing challenges of diversity, ethics,Accommodate ongoing challenges of diversity, ethics,
career patterns, and the motivation and coordination ofcareer patterns, and the motivation and coordination of
employees.employees.

6. Organizational BehaviorOrganizational Behavior
Organizational Behavior (OB) is theOrganizational Behavior (OB) is the
study and application of knowledge aboutstudy and application of knowledge about
how people, individuals, and groups acthow people, individuals, and groups act
in organizations. It does this by taking ain organizations. It does this by taking a
system approachsystem approach. That is, it interprets. That is, it interprets
people-organization relationships inpeople-organization relationships in
terms of the whole person, whole group,terms of the whole person, whole group,
whole organization, and whole socialwhole organization, and whole social
system. Its purpose is to build bettersystem. Its purpose is to build better
relationships by achieving humanrelationships by achieving human
objectives, organizational objectives, andobjectives, organizational objectives, and
social objectives.social objectives.

7. Organizational BehaviorOrganizational Behavior
• Studies management activities that promote employeeStudies management activities that promote employee
effectivenesseffectiveness
– investigates the complex nature of individual, group, andinvestigates the complex nature of individual, group, and
organizational processesorganizational processes
– Theory XTheory X
• managers assume that workers are lazy,managers assume that workers are lazy,
irresponsible, and require constant supervisionirresponsible, and require constant supervision
– Theory YTheory Y
• managers assume employees want to work andmanagers assume employees want to work and
control themselvescontrol themselves
• PersonalitiesPersonalities
– Douglas McGregorDouglas McGregor

8. Organizational Behavior (cont.)Organizational Behavior (cont.)
Promotes employee effectiveness through understanding ofPromotes employee effectiveness through understanding of
individual, group, and organizational processesindividual, group, and organizational processes
Stresses relationships among employees, managers, and workStresses relationships among employees, managers, and work
performedperformed
Assumes employees want to work and can control themselvesAssumes employees want to work and can control themselves
Increased participation, greater autonomy, individual challengeIncreased participation, greater autonomy, individual challenge
and initiative, and enriched jobs may increase participationand initiative, and enriched jobs may increase participation
Recognized the importance of developing human resourcesRecognized the importance of developing human resources
Key concepts
Contributions

9. Elements of OrganizationalElements of Organizational
BehaviorBehavior
• The organization's base rests on management'sThe organization's base rests on management's
philosophy, values, vision and goals.philosophy, values, vision and goals.
• This in turn drives the organizational culture which isThis in turn drives the organizational culture which is
composed of the formal organization, informal organization,composed of the formal organization, informal organization,
and the social environment.and the social environment.
• The culture determines the type of leadership,The culture determines the type of leadership,
communication, and group dynamics within thecommunication, and group dynamics within the
organization.organization.
• The workers perceive this as the quality of work life whichThe workers perceive this as the quality of work life which
directs their degree of motivation.directs their degree of motivation.
• The final outcome are performance, individual satisfaction,The final outcome are performance, individual satisfaction,
and personal growth and development.and personal growth and development.
• All these elements combine to build the model orAll these elements combine to build the model or
framework that the organization operates from.framework that the organization operates from.

10. What is Theory?What is Theory?
• Theory is: “a plan or scheme existing inTheory is: “a plan or scheme existing in
the mind only, but based on principlesthe mind only, but based on principles
verifiable by experiment or observation”verifiable by experiment or observation”

11. Definition of OrganizationDefinition of Organization
TheoryTheory
• Organization theory: is the set of schemesOrganization theory: is the set of schemes
(body of knowledge) stemming from a(body of knowledge) stemming from a
definable field of study which can bedefinable field of study which can be
termedtermed organizations scienceorganizations science
(Kast&Rosenzweig1970)(Kast&Rosenzweig1970)..
• The study of organizations: is an appliedThe study of organizations: is an applied
science because the resulting knowledgescience because the resulting knowledge
is relevant to problem solving or decisionis relevant to problem solving or decision
making in ongoing enterprises ormaking in ongoing enterprises or
institutions (Kast&Rosenzweig1970)(Kast&Rosenzweig1970).

12. Definition of OrganizationDefinition of Organization
Theory Cont..Theory Cont..
• ““It is the application of scientific knowledgeIt is the application of scientific knowledge
in engineering and other forms ofin engineering and other forms of
technology that has brought suchtechnology that has brought such
spectacular changes in the materialspectacular changes in the material
context of our lives over the past century”context of our lives over the past century”
(Kast&Rosenzweig1970)(Kast&Rosenzweig1970)..

13. OT OB
HROD
MACRO MICRO
APPLIED
THEORETICAL

14. Enter Organizational BehaviorEnter Organizational Behavior
Organizational behavior (OB)
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.

15. Complementing Intuition with
Systematic Study
Complementing Intuition with
Systematic Study
Systematic study
Looking at relationships, attempting to attribute
causes and effects, and drawing conclusions based
on scientific evidence.
Provides a means to predict behaviors.
Intuition
“Gut” feelings about “why I do what I do” and “what
makes others tick”.

17. Contributing Disciplines to the
OB Field
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
Psychology
The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals.

18. Contributing Disciplines to the
OB Field (cont’d)
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
Sociology
The study of people in relation to their fellow human beings.

19. Contributing Disciplines to the OB
Field (cont’d)
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (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.

20. Contributing Disciplines to the OB
Field (cont’d)
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
Anthropology
The study of societies to learn about human beings and their
activities.

21. There Are Few Absolutes in OB
x y
Contingency variables: "It
Depends!!!"
Situational factors that make the main
relationship between two variables change---
e.g., the relationship may hold for one
condition but not another.
Country 1
x yCountry 2
May be related to
May NOT be related to
In
In

22. Challenges and Opportunities for
OB
• Responding to Globalization
– Increased foreign assignments
– Working with people from different cultures
– Coping with anti-capitalism backlash
– Overseeing movement of jobs to countries with
low-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

23. DomesticDomestic
PartnersPartners
DomesticDomestic
PartnersPartners
Major Workforce Diversity
Categories
RaceRaceRaceRace
Non-ChristianNon-ChristianNon-ChristianNon-Christian
NationalNational
OriginOrigin
NationalNational
OriginOrigin
AgeAgeAgeAge
DisabilityDisabilityDisabilityDisability
E X H I B I T 1–4
E X H I B I T 1–4
GenderGenderGenderGender

24. 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

25. What Is Quality Management?
1.Intense focus on the customer.
2.Concern for continuous improvement.
3.Improvement in the quality of everything
the organization does.
4.Accurate measurement.
5.Empowerment of employees.
E X H I B I T 1–6
E X H I B I T 1–6

26. Challenges and Opportunity
for OB (cont’d)
• Improving People Skills
• Empowering People
• Stimulating Innovation and Change
• Coping with “Temporariness”
• Working in Networked Organizations
• Helping Employees Balance Work/Life
Conflicts
• Improving Ethical Behavior
• Managing People during the War on
Terrorism

27. A Downside to Empowerment?

28. Basic OB Model, Stage I
E X H I B I T 1-6
E X H I B I T 1-6
Model
An abstraction of reality.
A simplified representation
of some real-world
phenomenon.

29. The Dependent Variables
x
y
Dependent variable
A response that is affected by an independent variable (what
organizational behavior researchers try to understand).

30. The Dependent Variables (cont’d)
Productivity
A performance measure that includes
effectiveness and efficiency.
Effectiveness
Achievement of goals.
Efficiency
Meeting goals at a low
cost.

31. The Dependent Variables (cont’d)
Absenteeism
The failure to report to work.
Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization.

32. The Dependent Variables (cont’d)
Deviant Workplace Behavior
Voluntary behavior that violates
significant organizational norms and
thereby threatens the well-being of
the organization and/or any of its
members.

33. The Dependent Variables (cont’d)
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.

34. The Dependent Variables (cont’d)
Job satisfaction
A general attitude (not a behavior) toward one’s job; a
positive feeling of one's job resulting from an
evaluation of its characteristics.

35. The Independent Variables
IndependentIndependent
Variables Can BeVariables Can Be
IndependentIndependent
Variables Can BeVariables Can Be
Individual-LevelIndividual-Level
VariablesVariables
Individual-LevelIndividual-Level
VariablesVariables
OrganizationOrganization
System-LevelSystem-Level
VariablesVariables
OrganizationOrganization
System-LevelSystem-Level
VariablesVariables
Group-LevelGroup-Level
VariablesVariables
Group-LevelGroup-Level
VariablesVariables
Independent variable
The presumed cause of some change in the dependent
variable; major determinants of a dependent variable.

36. Basic OB
Model,
Stage II
E X H I B I T 1-7
E X H I B I T 1-7

37. Theory X/YTheory X/Y
• Douglas MacGregor, 1960Douglas MacGregor, 1960
• Interaction between supervisors andInteraction between supervisors and
subordinatessubordinates
• Organization’s management approach isOrganization’s management approach is
determined by supervisors’ attitudes anddetermined by supervisors’ attitudes and
beliefs about subordinatesbeliefs about subordinates
• Beginning of human relations movementBeginning of human relations movement

38. Theory XTheory X
• Role of ManagementRole of Management
– Management responsibleManagement responsible
for organizing elements offor organizing elements of
productive enterpriseproductive enterprise
– People need to bePeople need to be
controlled and directedcontrolled and directed
– People would be passivePeople would be passive
otherwiseotherwise
• Human NatureHuman Nature
– man works as little asman works as little as
possiblepossible
– lacks ambition, dislikeslacks ambition, dislikes
responsibility, prefers to beresponsibility, prefers to be
ledled
– inherently self-centeredinherently self-centered
– naturally resistant tonaturally resistant to
changechange
– gullible, not very brightgullible, not very bright

39. Theory YTheory Y
• Role of ManagementRole of Management
– Management responsibleManagement responsible
for organizing elements offor organizing elements of
productive enterpriseproductive enterprise
– Task of management is toTask of management is to
arrange organizationalarrange organizational
conditions so that peopleconditions so that people
can achieve their owncan achieve their own
goals best by directing theirgoals best by directing their
own efforts towardown efforts toward
organizational objectivesorganizational objectives
• Human NatureHuman Nature
– People are not naturallyPeople are not naturally
passive, they have becomepassive, they have become
so as a result ofso as a result of
experience in organizationsexperience in organizations
– Motivation and capacity forMotivation and capacity for
assuming responsibility isassuming responsibility is
inherent in peopleinherent in people

40. Theory X and Theory YTheory X and Theory Y
• Theory XTheory X
– childlikechildlike
– passivepassive
– lazylazy
– resists workresists work
– want to be ledwant to be led
– bear minimumbear minimum
• Theory YTheory Y
– adultsadults
– desire to achievedesire to achieve
– committed to workcommitted to work
– responsibleresponsible
– lead, control theirlead, control their
workwork
– want to do a goodwant to do a good
jobjob

41. Models of OrganizationalModels of Organizational
BehaviorBehavior
• AutocraticAutocratic
• CustodialCustodial
• SupportiveSupportive
• CollegialCollegial

42. Autocratic ModelAutocratic Model
• The basis of this modelThe basis of this model
is power with ais power with a
managerial orientationmanagerial orientation
of authority.of authority.
• The employees in turnThe employees in turn
are oriented towardsare oriented towards
obedience andobedience and
dependence on thedependence on the
boss.boss.
• The employee needThe employee need
that is met isthat is met is
sustenance.sustenance.
• The performance resultThe performance result

43. Custodial ModelCustodial Model
• The basis of this modelThe basis of this model
is economic resourcesis economic resources
with a managerialwith a managerial
orientation of money.orientation of money.
• The employees in turnThe employees in turn
are oriented towardsare oriented towards
security and benefitssecurity and benefits
and dependence on theand dependence on the
organization.organization.
• The employee needThe employee need
that is met is security.that is met is security.
• The performance resultThe performance result
is passive cooperation.is passive cooperation.

44. Supportive ModelSupportive Model
• The basis of this model isThe basis of this model is
leadership with aleadership with a
managerial orientation ofmanagerial orientation of
support.support.
• The employees in turn areThe employees in turn are
oriented towards joboriented towards job
performance andperformance and
participation.participation.
• The employee need thatThe employee need that
is met is status andis met is status and
recognition.recognition.
• The performance result isThe performance result is
awakened drives.awakened drives.

45. Collegial ModelCollegial Model
• The basis of this model isThe basis of this model is
partnership with apartnership with a
managerial orientation ofmanagerial orientation of
teamwork.teamwork.
• The employees in turn areThe employees in turn are
oriented towardsoriented towards
responsible behavior andresponsible behavior and
self-discipline.self-discipline.
• The employee need that isThe employee need that is
met is self-actualization.met is self-actualization.
• The performance result isThe performance result is
moderate enthusiasm.moderate enthusiasm.