Organizational Behavior

1. 1
Managing People and Organization
A good manager is he/she who can organize
all the members under him/her to meet
organizational goal, and members are
satisfied, loyal, and committed
So, two things to notice
Performance as an individual and as
a group
Job satisfaction

2. 2
Managing People and Organization
• Robert Katz (1974) identified three basic and also
essential skill for a good manager. These are:
• Technical skill: ability to apply expertise and
specialized knowledge
• Human skill: ability to work with, understand, and
motivate other people, both individually and in
groups.
• Conceptual skill: The mental ability to analyze and
diagnose complex situations and decision making

3. 3
Managerial Functions
• Skill Type Needed by
Manager Level
Top
Managers
Middle
Managers
Line
Managers
Conceptual Human Technical

4. 4
Managing People and Organization
In the early part of 20th century, a French
industrialist, Henri Fayol observed 5 important
functions of a manager. These are:
• Plan
• Organize
• Command
• Coordinate
• Control

5. 5
Managing People and Organization
Now, present organizational manager
condensed these into four categories.
Resources
Human
Financial
Physical
Informational
Goal
Achievements
Management Functions
Planning Organizing Directing Controlling

6. 6
Managing People and Organization
Planning
• A process that
includes defining
goals, establishing
strategy, and
developing plans to
coordinate activities.

7. 7
Managing People and Organization
Organizing
• 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 to be
made.

8. 8
Managing People and Organization
Directing
• A function that includes
motivating employees,
directing others,
selecting the most
effective communication
channels, and resolving
conflicts.

9. 9
Managing People and Organization
Controlling
• Monitoring activities
to ensure they are
being accomplished
as planned and
correcting any
significant deviations.

10. 10
Managing People and Organization
For managing people, process, and organization, a
manager should consider
• Individual behavior in organizations, including
diversity and demographic characteristics, decision
making and the effects of personal networks.
• Organizational process, interpersonal behavior,
including teamwork, norms, and managing through
others.
• Organizational factors that affect behavior, such as
reward systems, culture, and organizational design.

11. 11
Managing People and Organization
• There is no unique way or best way to manage.
• A manager has to take into account the
environmental conditions that apply to a specific
situation or a specific time when formulating
strategy.
• The contingency approach to management
expects that a manager must consider each
facet of environment and the interrelationships
between these facets while decision making,
problem solving, job designing.

12. 12
Managing People and Organization
Challenges of Managers
• Increasing number of global organizations.
• Building competitive advantage through superior
efficiency, quality, innovation, and responsiveness.
• Increasing performance while remaining ethical
managers.
• Managing an increasingly diverse work force.
• Using new technologies.

13. 13
Managing People and Organization
Managerial Activities
• Traditional management
– Decision making, planning, and controlling
• Communication
– Exchanging routine information and processing
paperwork
• Human resource management
– Motivating, disciplining, managing conflict, staffing,
and training
• Networking
– Socializing, politicking, and interacting with others

14. 14
Managing People and Organization
• Allocation of Activities
by Time

15. 15
Background of Organizational Theory
Taylor’s Principles: Scientific Management
1. Study the way workers perform tasks and
experiment with ways of improving them
• Gather detailed, time and motion information.
• Try different methods to see which is best.
2. Determine rules that govern task performance
• Teach to all workers.
3. Select (according to the rules) the worker for the
task according to the rules set in Step 2.
4. Establish a performance standard, and develop a
pay system that rewards above-standard
performance
• Workers should benefit from higher output.

16. 16
Background of Organizational Theory
• Henri Fayol, developed a set of 14 principles:
1. Division of Labor: allows for job specialization.
 This is the specialization that economists consider necessary for
efficiency in the use of labor.
 Fayol applies the principle to all kinds of work, managerial as well as
technical.
 Fayol noted firms can have too much specialization leading to poor
quality and worker involvement.
2. Authority and Responsibility: Fayol included both formal and
informal authority resulting from special expertise.
 Here Fayol finds authority and responsibility to be related, with the
latter arising from the former. He sees authority as a combination of
official factors, deriving from the manager’ position and personal
factors.
3. Unity of Command: Employees should have only one boss.
 This means that employees should receive orders from one superior
only.

17. 17
Background of Organizational Theory
Henri Fayol, developed a set of 14 principles:
4. Line of Authority: a clear chain from top to bottom of the firm.
• Fayol thinks of this as a chain of superiors from the highest to the
lowest ranks, which, while not to be departed from needlessly, should
be short circuited when to follow it scrupulously would be detrimental.
5. Centralization: the degree to which authority rests at the very top.
• Without using the term “Centralization of authority.” Fayol refers to the
extent to which authority is concentrated or dispersed. Individual
circumstances will determine the degree that will give the best overall
yield.
6. Unity of Direction: One plan of action to guide the organization.
• According to this principle, each group of actives with the same
objective must have one head and one plan.

18. 18
Background of Organizational Theory
Henri Fayol, developed a set of 14 principles:
7. Equity: Treat all employees fairly in justice and
respect.
• Loyalty and devotion should be elicited from personnel by a
combination of kindliness and justice on the part of
managers when dealing with subordinators.
8. Order: Each employee is put where they have the
most value.
• Breaking this into material and social order, Fayol follows
the simple adage of a place for everything and everything
in its place.
9. Initiative: Encourage innovation.
 Initiative is conceived of as the thinking out and execution of a plan.
Since it is one of the keenest satisfactions for an intelligent man to
experience.

19. 19
Background of Organizational Theory
Henri Fayol, developed a set of 14 principles:
10. Discipline: obedient, applied, respectful employees needed.
• Seeing discipline as “respect for agreements which are directed at
achieving obedience, application, energy, and the outward marks of
respect. Fayol declares that discipline requires good superiors at all
levels.
11. Remuneration of Personnel: The payment system contributes to
success.
 Methods of payment should be fair and afford the maximum possible
satisfaction to employees and employer.
12. Stability of Tenure: Long-term employment is important.
• Finding unnecessary turnover to be both the cause and the effect of
bad management, Fayol points out its dangers and costs.

20. 20
Background of Organizational Theory
Henri Fayol, developed a set of 14 principles:
13. General interest over individual interest: The
organization takes precedence over the individual.
• This is self explanatory when the two are found to differ,
management must reconcile them.
14. Team Spirit (Esprit de corps): Share enthusiasm or
devotion to the organization.
• This is principle that “in union there is strength” as well as
an extension of the principle of unity of command,
emphasizing the need for teamwork and the importance of
communication in obtaining it.

21. 21
Attitudes and Behavior
Cognitive Dissonance Theory
•In the late 1950s, Leon Festinger proposed the theory
of Cognitive Dissonance
•The theory sought to explain the linkage between
attitudes and behavior
•Dissonance means an inconsistency
•Cognitive dissonance refers to any incompatibility
or conflict that an individual might perceive
between two or more of his/her attitudes, or between
his/her behavior and attitudes

22. 22
Attitudes and Behavior
Cognitive Dissonance Theory … continued
•You know attending in the class is important for your
learning. This is your attitude. So you should present,
but you do not do that. This is your behavior
(incompatibility between attitude and behavior)
•You would like to take bribes. This is your one
attitude. On the other hand you do not like to take
bribes because you are afraid of legal problems and
social dishonor. This is your another attitude. There
is an incompatibility between two attitudes.

23. 23
Attitudes and Behavior
Cognitive Dissonance Theory … continued
• Festinger argued that any form of inconsistency is uncomfortable
• Individuals will attempt to reduce the dissonance and, hence, the
discomfort
• Therefore, individuals will seek a stable state, in which there is a
minimum of dissonance
• No individuals, of course, can completely avoid dissonance
• You know attending in the class is important for your learning. So
you should present, but you do not do that.

24. 24
Attitudes and Behavior
Cognitive Dissonance Theory … continued
•Festinger proposed that the desire to reduce
dissonance would be determined by the importance
of the elements creating the dissonance
•and the degree of influence the individual believes
he/she has over the elements
•and the rewards that may be involved in dissonance
• If the elements creating the dissonance are relatively
unimportant, the pressure to correct this imbalance
will be low.

25. 25
Attitudes and Behavior
Cognitive Dissonance Theory … continued
• Suppose, you are working as a junior executive in a company.
You always dislike and are strongly against to work after regular
office hour.
• But your manager always ask all of you to work up to 8:00 PM to
finish pending works.
• This is very important for the company’s export shipment.
• Now after couple of years, you are the Manager. What will you
do?
• In principle you are against this. At the same time to meet
company’s goal (which is your responsibility as a Manager and
also you are bound to do that to retain your job), you have to do
that.
•The elements involved are very important, so difficult to
reduce dissonance.

26. 26
Attitudes and Behavior
Cognitive Dissonance Theory … continued
• There may be couple of alternatives.
• You can maintain your principle and let the employees to go
home after regular office hour.
• You can ask the employees to work during interval time to finish
the works
• You can now suggest your employees that working longer time is
good for their knowledge and skill
• You can simply decide that since you are now the Manager, you
have to perform your duty. To perform own duty is a more
important principle that retaining own perceived principle.
• Or, you can simply ignore your principle by confirming that you
used to believe on that principle in the past, not now. This is a
competitive era. We have to work longer time since we are
getting good salary.

27. 27
Attitudes and Behavior
Cognitive Dissonance Theory
Cognitive dissonance theory suggests that we have an
Intrinsic motivation or desire to keep our attitudes and
beliefs in harmony (in the same line)
Implications for Organizational life:
 Change inconsistency between attitude and
behavior
 Change one or more of the attitudes
 Provide new information for cultural change to be
compatible with organizational norms
 Reduce importance of inconsistent beliefs