Organizational behavior (OB) is the study of how individuals and groups act within organizations and how organizations manage their environments. OB focuses on improving productivity by understanding employee behavior and predicting human behavior in organizations. Behavior is generally predictable but depends on circumstances. To study OB effectively requires a systematic, evidence-based approach rather than just common sense. OB draws from various disciplines like psychology, sociology, and political science to analyze behavior at the individual, group, and organizational levels.

1. Organizational Behavior

2. O + B = OB

3. People Are an Organization’s Most Important Assets

4. What is an Organization? Organizations are simply groups with two or more people that share a certain set of goals and meet at regular times. 4

5. Behavior This behavior occurs in organizations.

6. What is an Organization? An organization is a collection of people who work together to achieve individual and organizational goals. 5

7. What is Organizational Behavior? Organizational behavior (OB) is the study of factors that affect how individuals and groups act in organizations and how organizations manage their environments. 6

8. What is Organizational Behavior? Definition: The study of human behavior, attitudes, and performance in organizations. Value of OB: Helps people attain the competencies needed to become effective employees, team leaders/members, or managers Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge needed by an individual to be effective in most professional and managerial positions

9. What is Organizational Behavior? Organizational Behavior is the study of human behavior in the workplace, the interaction between people and the organization with the intent to understand and predict human behavior .

10. What is OB? The study of human behavior in the workplace The i nvestigation of the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness OB theories have widespread applications – among other things, knowing these theories can help you to: Promote the well-being of employees Evaluate solutions proposed by consultants and managers Predict what will happen in your organization Influence the direction of your organization

11. Organizational Behaviour . . . a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

12. Why Do We Study OB? To learn about yourself and how to deal with others You are part of an organization now, and will continue to be a part of various organizations Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time Some of you may want to be managers or entrepreneurs

13. WHY OB

14. 4 Insert Figure 1.1 here

15. Characteristics Goal-Oriented Levels of analysis Human tool Satisfaction of employees need A total systems approach

16. 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

17. Major Workforce Diversity Categories Domestic Partners Race Non-Christian National Origin Age Disability E X H I B I T 1–4 Gender

18. 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

19. Today’s Challenges in the Canadian Workplace Challenges at the Individual Level Job Satisfaction Empowerment Behaving Ethically Challenges at the Group Level Working With Others Workforce Diversity

20. Today’s Challenges in the Canadian Workplace Challenges at the Organizational Level Productivity Developing Effective Employees Absenteeism Turnover Organizational Citizenship Competition From the Global Environment Managing and Working in a Global Village

21. Productivity Productivity A performance measure including effectiveness and efficiency Effectiveness Achievement of goals Efficiency The ratio of effective work output to the input required to produce the work

22. Effective Employees Absenteeism Failure to report to work Turnover Voluntary and involuntary permanent withdrawal from the organization Organizational citizenship behaviour Discretionary behaviour that is not part of an employee’s formal job requirements, but is helpful to the organization

23. Exhibit 1-2 Toward an OB Discipline Social psychology Psychology Behavioural science Contribution Unit of analysis Output Anthropology Sociology Political science Study of Organizational Behaviour Organization system Learning Motivation Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Group dynamics Work teams Communication Power Conflict Intergroup behaviour Formal organization theory Organizational technology Organizational change Organizational culture Conflict Intraorganizational politics Power Organizational culture Organizational environment Behavioural change Attitude change Communication Group processes Group decision making Group Comparative values Comparative attitudes Cross-cultural analysis Individual

24. The Rigour of OB OB looks at consistencies What is common about behaviour, and helps predictability? OB is more than common sense Systematic study, based on scientific evidence OB has few absolutes OB takes a contingency approach Considers behaviour in context

25. Beyond Common Sense Systematic Study Looking at relationships, attempting to attribute causes and effects and drawing conclusions based on scientific evidence Behaviour is generally predictable There are differences between individuals There are fundamental consistencies There are rules (written & unwritten) in almost every setting

26. Exhibit 1-1 Challenges Facing the Workplace Workplace Organizational Level • Productivity • Developing Effective Employees • Global Competition • Managing in the Global Village Group Level • Working With Others • Workforce Diversity Individual Level • Job Satisfaction • Empowerment • Behaving Ethically

27. Exhibit 1-3 Basic OB Model, Stage I Organization systems level Group level Individual level

28. Exhibit 1-4 Basic OB Model, Stage II Ability Human input Values and attitudes Motivation Individual decision making Personality Perception Biographical characteristics Leadership Work design and technology Organizational culture Change and stress Group decision making Other groups Conflict Power and politics Work teams Individual Level Group Level Organization Systems Level Communication Group structure Human resource policies and practices Organization structure and design Individual Differences Satisfaction Organizational commitment Turnover Absence Productivity Workplace interaction Human output

29. Exhibit 1-5 Competing Values Framework Flexibility Control Internal Focus External Focus

30. Competing Values Framework Internal-External Dimension Inwardly toward employee needs and concerns and/or production processes and internal systems or Outwardly, toward such factors as the marketplace, government regulations, and the changing social, environmental, and technological conditions of the future Flexibility-Control Dimension Flexible and dynamic, allowing more teamwork and participation; seeking new opportunities for products and services or Controlling or stable, maintaining the status quo and exhibiting less change

31. Basic OB Model Independent Variables Individual-Level Variables (Leadership, Power, Attitudes) Group-Level Variables (Diversity, Groups, Teams, Conflict) Organizational Systems-Level Variables (Culture, Structure, Design, Change) Dependent Variables Productivity Absenteeism Turnover Job Satisfaction Motivation Well-being Safety Effectiveness Efficiency Ethics Organization systems level Group level Individual level

32. Summary & Implications OB is a field of study that investigates the impact of individuals, groups, and structure on behaviour within an organization. OB focuses on improving productivity, by understanding employees and why they behave in the ways they do. Behavior of organizations, groups, & individuals can be predicted, but you have to understand the circumstances. To study OB, one needs to move from an intuition and common sense approach to a systematic study. OB uses systematic study to improve predictions of behaviour.

33. Why Study Organizational Behavior? Success isn’t a destination – it’s a process. And the margin between successes is often small. Learn the principles of defining and achieving success in your own life and begin the journey today . This journey begins with understanding the behaviors between the leader, the followers, and the organization. This is also a leadership course of study. To be successful leader, one needs to understand the behaviors of people, organizations, and the situation.

34. Levels of Analysis Organization level Group level Individual level

35. Basic OB Model Independent Variables Dependent Variables PRODUCTIVITY ABSENTEESIM TURNOVER JOB SATISFACTION Organizational Level Group Level Individual Level

36. Elements of ob People .Individuals .Group Environment .Government .Competition .Social Technology .Machinery .Copm. hard & soft. Structure .Jobs .Relationship OB

37. 5 Insert Figure 1.2 here

38. Contribution to various disciplines of ob

39. Contributing Disciplines to the OB Field Psychology Sociology Social Psychology Anthropology Political Science

40. Study of OB Individual Group Organizations Perception Personality Motivation Training P A Job Satisfact. Psychology Group ,Team Communi. Conflict Org.change, structure Attit.& beh. Change Group process & decision making Indi.Org.culture & Env. Org. Power Politics Sociology Social Psychology Anthropology Political science

41. ORIGINS OF ORGANIZATIONAL BEHAVIOR Psychology . Psychological theories have helped us explain and predict individual behavior . Many of the theories dealing with personality, attitude, learning, motivation, and stress have been applied in Organizational Behavior to understand work-related phenomena such as job satisfaction, commitment, absenteeism, turnover, and worker well-being .

42. Sociology Sociologists , studying the structure and function of small groups within a society have contributed greatly to a more complete understanding of behavior within organizations. Taking their cue from Sociologists, scholars in the field of Organizational Behavior have studied the effects of the structure and function of work organization on the behavior of groups, as well as the individuals within those groups. Many of the concepts and theories about groups and the processes of communication, decision making, conflict, and politics used in Organizational Behavior, are rooted in the field of Social Psychology .

43. Contributing Disciplines to the OB Field (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

44. Contributing Disciplines to the OB Field (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

45. Political Science The field of Political Science has helped us understand how differences in preferences and interests lead to conflict and power struggles between groups within organizations.

46. Anthropology Organizational Behavior draws on the field of Anthropology for lessons about how cultures ( corporate culture) and belief systems develop.

47. Contributing Disciplines to the OB Field (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

48. Managerial Roles Manager : Any person who supervises one or more subordinates. Role : A set of behaviors or tasks a person is expected to perform because of the position he or she holds in a group or organization. Managerial roles identified by Mintzberg (see Table 1.1): Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance handler Resource allocator Negotiator 8

49. Managerial Skills Conceptual Skills : The ability to analyze and diagnose a situation and distinguish between cause and effect. Human Skills : The ability to understand, work with, lead, and control the behavior of other people and groups. Technical Skills : Job-specific knowledge and techniques. 9

50. Challenges for Organizational Behavior and Management Using new information technology to enhance creativity and organizational learning. Managing human resources to increase competitive advantage. Developing organizational ethics and well-being. Managing a diverse work force. Managing the global environment. 10

51. personality

52. Nature of Personality Personality traits Reflects individuals differences Personality can change

53. determinants Individual personality Biological Others Cultural Situational Family & Social

54. biological Heredity Brain Physical features

55. Cultural factors Situational factors

56. Family & Social Factors Home & Family environment Social group

57. Others Interest Motives

58. Big Five Traits of Personality

59. Agreeableness Extroversion Emotional stability Conscientiousness Openness

60. agreeableness Agreeableness High Low Agreeableness - Cooperative, warm, caring, good-natured, trusting

61. Extroversion Extroversion Extroversion Introversion Extroversion - Social, outgoing, talkative, assertive, forgiving, understanding

62. Emotional stability Emotional High Low Emotional stability- happy, unworried, secure, calm

63. Conscientiousness Conscientiousness High Low Conscientiousness - Dependable, hardworking, organized, self-disciplined, responsible

64. Openness Openness More Less Openness - Creative, Cultured, Flexible, imaginative

65. perception

66. Human being are constantly attacked by numerous sensory including noise, sight, smell, taste etc. The critical question is the study of perception is “why the same universe is viewed differently by different persons?” The answer is the perception. Different people perceive the universe differently .

67. Perception is the process through which the information from outside environment is selected, received, organize and interpreted to make it meaningful to us. Acc. To the Joseph Reitz: perception includes all those processes by which an individual receive information about his environment – seeing, hearing, feeling, tasting and smelling.

68. process Perceptual Inputs Perceptual Mechanisms Perceptual Outputs Individual Receiving Selecting Organizing Interpreting Actions

69. Figure and Group-Figure is perceived to dominate and more attention is paid to it, while ground is given less attention and is kept in the background. Simplification- Whenever people is overloaded with the information, they try to simplify it to make it more meaningful and understandable. Perceiver subtract less salient information and concentrate on more important one. Grouping- In grouping, the information which have been grouped together, are likely to be perceived as having same characteristics.

70. action The last phase of perceptual process is that acting in relation to what has been perceived. This action may be covert or overt. Covert- Change in attitude, opinions, feeling, values and impression formation resulting from the perceptual input. Overt- The overt action may be in the form of behavior easily visible.

71. Factors that influence the perception Perception Factors in situation Social setting, Organizational setting Factors in perceiver Needs and Motives, Experience, Current psychological state Factors in target Status, Size, Contrast,

72. Internal factors Needs and Motives- People’s perception is determined by their inner needs. A feeling of tension and discomfort when one thinks he is missing something or requires something. Similarly people with different needs selects different items to respond. Experience - It have a constant bearing on perception. Successful experience boost the perception ability whereas failure erodes self- confidence.

73. Current psychological state- The emotional and psychological states of an individual are likely to influence how things are perceived. If a person is depressed, he is likely to perceive the same situation differently than if he is elated.

74. External factors Status - Perception is also influenced by the status of the perceiver. High status people can exert influence on perception of employees than low status people. For example if we introduce the CEO or the peon of the organization then w remember only the name of the CEO.

75. Contrast - Stimuli contrast with the surrounding environment. A contrasting effects can be caused by color or any other factor that is unusual. Size - The bigger size of the perceived stimulus, the higher is the probability that it is perceived. Size attracts the attention of an individual.