This document discusses organizational behavior and its key concepts. It defines organizational behavior as the systematic study and application of knowledge about how individuals and groups act within organizations. It identifies four main goals of organizational behavior as describing, understanding, predicting, and controlling human behavior at work. Key forces that affect organizational behavior are identified as people, structure, technology, and the external environment. The nature of people and organizations are also discussed.

1. ORGANIZATION BEHAVIOR
Mamun Muztaba
MC (Asst Professor)@ Bangladesh Institute of Management

2. ORGANIZATIONAL BEHAVIOR IS THE
SYSTEMATIC STUDY AND CAREFUL
APPLICATION OF KNOWLEDGE ABOUT
HOW PEOPLE - AS INDIVIDUALS AND
AS GROUPS- ACT WITHIN
ORGANIZATIONS.

3. The systematic study and application
of knowledge about how individuals
and groups act within the
organizations where they work.

5. HISTORICAL PHASE OF OB
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Machine
Intelligence
IR 4.0
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Analytics
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IR 4.0

6. GOALS OF OB
• Describe
• Understand
• Predict
• Control

7. Describe: (How people behave under a variety of conditions)
• Study of organizational behavior is based on scientific methods,
which have been applied on human beings.
• It is a science, that analyses as to how people behave in different
situations in the organization.
• A manager should be able to describe the behavior of each of
the individuals under his command, identify attitude, and be able to
pinpoint his behavior so that the situation in the organization is under
control.

8. Understand: (Why people behave as they do)
• Leaders must understand human behavior as to why people behave in particular
manner and try to identify reasons so that corrective actions can be taken.
Predict: (Managers should have the capacity to predict employees‟ actions on a certain day and take
preventive actions)
• By frequent closer interaction, a leader is in a position to identify the nature of
workers.
• Some are more productive while the others are tardy and disruptive.
• In such situation, a leader should be able to handle each individual differently so that
his or her actions can be channelized to higher productivity.

9. Control: (To develop some human activity at work)
• Managers in the organizations should train their subordinates continuously; aim
being development of skills, promotion of productivity and improvement of individual
behavior.
• It is a continuous process on the part of manager. He must lay down control
measures so that the energy of workers is diverted towards organizational
objectives.
• Communication should be used to ensure that the behavior of individual is
controlled.
• Environment has a great impact on human behavior. Appropriate internal
environment would help organizations to built favorable work environment that will
help individuals and groups within organizations to work effectively towards higher
productivity.

10. KEY FORCES AFFECT
ORGANIZATIONAL BEHAVIOR

11. How the key forces affect organization
behavior during interaction with other forces?
People,
Structure,
Technology, and
Environment.

12. KEY FORCES
People
• People make up the internal social system of the organization.
• That system consists of individuals and groups and groups may be
large and small, formal and informal. Groups are dynamic. Group form,
change and disband. Since organization is combination of group of
people.
• Managers must handle the people in the right direction. This is very
challenging to guide people or employees who have different
educational backgrounds, talent and perspectives.
• So managers must understand predict and control the people. They
build up relationship among the employees and motivate themselves.

13. KEY FORCES
Structure
• Structure defines the formal relationship and use of people in
organization.
• There are managers and employees, accounts assemblers in order
to accomplish different kind activities.
• They are related in structural way so that their work can be
effectively coordinated. Because there is no organization can be
successful without proper coordination.

14. KEY FORCES
Technology
• Technology provides the resources with which people work. They
cannot accomplish work with their bare hands.
• The great benefit of technology is that it allows people to do more and
better work. But it also restricts people in various ways. It has cost as
well as benefits.
• If any person has lack of technological knowledge he/she cannot work.
Moreover technology decrease per unit cost and improve quality of the
products and services.

15. KEY FORCES
Environment
• All organizations operate within an internal and an external environment.
A single organization does not exit alone.
• An organization is a part of a lager system that contains many other
elements, such as government, the family and other organizations.
• Any kinds of change in the environment effect the organization. Citizens
expect organizations should be socially responsible. There is a direct
impact of several tread unions of organizations.
• So all the elements of environments influence the attitude and provide
competition. It must be considered in the study of human behavior in
organization.

16. LIMITATIONS OF ORGANIZATIONAL
BEHAVIOR
Behavioral bias:
• It is a mistake to make an assumption that the objective of organizational
behavior is as simple as to create a satisfied employee-base, as that goal will
not automatically turn into new products and stellar customer service.
• It is also a fact that the person who drives production outputs without regard for
employee needs is also not applying organizational behavior in the right
fashion.
• The most effective OB dwells, acknowledges and appreciates a social system
that consists of many types of human needs that are served in many ways.
• It further causes dependence, contentment, indiscipline, and irresponsibility.

17. LIMITATIONS OF ORGANIZATIONAL
BEHAVIOR
Law of diminishing returns:
• Overemphasis on an organizational behavior practice may produce negative results, as
indicated by the law of diminishing returns.
• It says that beyond a certain point, there is a decline in output even after each
additional good or positive factor.
• The concept means that for any situation there is an optimum level of a desirable
practice, such as recognition or participation. when that point is exceeded, there is a
decline in returns realized. To put it differently, the fact that a practice is desirable does
not necessarily imply that more of the same practice is more desirable.
Unethical practices and manipulation of people:
• Knowledge of motivation and communication acquired can be used to exploit
subordinates in an Organization by the manipulative managers.

18. Fundamental Concepts
of
Organizational Behavior
• The Nature of People
• The Nature of Organizations

19. THE NATURE OF PEOPLE
Individual differences
Each person is substantially different from all others in terms of their
personalities, needs, demographic factors and past experiences and/ or
because they are placed in different physical settings, time periods or social
surroundings.
Perception
• Perception is the unique way in which each person sees, organizes and
interprets things based on their background of individual differences.
• Each person reacts not to an objective world, but to a world judged in terms of
his/her own beliefs, values and expectations.
• Managers need to recognize the perceptual differences among the employees
and manage them accordingly.

20. A whole person
• People function as total human beings. People are physical, mental,
social and spiritual beings and the organization actually employs the
whole person rather than certain characteristics.
• There are spillover effects between the work life and life outside
work and management’s focus should be in developing not only a
better employee but also a better person in terms of growth and
fulfillment.
• If the whole person can be developed, then benefits will extend
beyond the firm into the larger society in which each employee lives.

21. THE NATURE OF PEOPLE
Motivated Behavior
• Individual’s behavior is guided by their needs and the
consequences that results from their acts.
• In case of needs, people are motivated not by what others think
they ought to have but by what they themselves want.
• Motivation of employees is essential to the operation of
organizations and the biggest challenge faced by managers.

22. THE NATURE OF PEOPLE
Desire for Involvement
• Many employees actively seek opportunities at work to become
involved in relevant decisions, thereby contributing their talents
and ideas to the organization’s success.
• Consequently, organizations need to provide opportunities to the
employees for meaningful involvement.

23. THE NATURE OF PEOPLE
Value of the Person
• People wants to be treated with care, dignity and respect and
increasingly they are demanding such treatment from their
employers.
• They want to be valued for their skills and abilities and to be
provided with opportunities to develop themselves.

24. THE NATURE OF ORGANIZATIONS
Social systems
• Sociology tells that organizations are social systems. Just have
people have psychological needs they also have social roles
and status.
• Their behavior is influenced by their group as well as their by their
individual drives.
• Two types of social systems exist side by side in the organization-
the formal (official ) social system and the informal social system -
each influencing and getting influenced by the other.

25. THE NATURE OF ORGANIZATIONS
Mutual Interest
• There is a mutuality of interest between the organization and
its employees.
• Organization needs employees to reach its objectives and
people need organizations to help them reach individual objectives.
• Mutual interest provides a super ordinate goal – one that can be
attained only through the integrated efforts of individuals and their
employees.

26. THE NATURE OF ORGANIZATIONS
Ethics
• Ethics is the use of moral principles and values to affect the
behavior of individuals and organizations with regard to choices
between what is right and wrong.
• In order to ensure a higher standard of ethical performance by
managers and employees companies have established codes of
ethics, publicized statements of ethical values and set up internal
procedures to handle misconduct.
• When organization’s goals and actions are ethical, individual,
organizational and social objectives are more likely to be met.

27. MANAGEMENT SKILLS
Robert Katz has identified three essential management skills:
technical, human and conceptual.

28. Do managers who climb the promotions ladder most quickly in
an organization do the same activities and with the same
emphasis as managers who do the best job?
Fred Luthans and his associates studied more than 450
managers and found that these managers all engaged in four
managerial activities:
1. Traditional management: decision making, planning and controlling.
2. Communication: exchanging routine information and processing paperwork.
3. Human resource management: motivating, disciplining, managing conflict,
staffing and training.
4. Networking: socializing, politicking and interacting with outsiders.