Organizational Behavior (OB) is the study of how individuals and groups act within organizations to improve effectiveness. It involves understanding factors such as motivation, perception, diversity, and leadership, emphasizing the impact of organizational structures and cultures. The field draws on various disciplines like psychology and sociology to analyze behaviors and challenges in the workplace, aiming to enhance productivity and employee well-being.

1. Organizational
Behavior
1

2. 
2
O + B = OB

3. People Are an
Organization’s Most
Important Assets
3

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

5. Behavior
5
 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
8
 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.
9

10. What is OB?
10


The study of human behavior in theworkplace
The investigation 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 yourorganization

11. Organizational Behaviour
11
 . . . 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?
12
 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
13

14. 4
Insert Figure 1.1 here
14

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

16. Challenges and Opportunities
for OB
16
 Responding to Globalization



Increased foreign assignments
Working with people from different cultures
Coping with anti-capitalism backlash
 low-
Overseeing movement of jobs to countries with
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
National
Origin
Age
Non-Christian
Race
Domestic
Partners
Disability
E X H I B I T 1–4
Gender
17

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
18

19. Today’s Challenges in the
Indian Workplace
19
 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
Indian Workplace
20
 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
21
 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
22
 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
Workdesign
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
23

24. The Rigour of OB
24
 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
25
 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
26

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

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

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

30. Competing Values Framework
30
 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
Organization systems level
Group level
Individual level
Independent Variables
Individual-Level Variables (Leadership, Power, Attitudes)
Group-Level Variables (Diversity, Groups, Teams, Conflict)
Organizational Systems-Level Variables (Culture, Structure, Design,
Change)
31
Dependent Variables
Productivity Absenteeism Turnover Job Satisfaction
Motivation Well-being Safety Effectiveness
Efficiency Ethics

32. Summary & Implications
32


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?
33
 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
34
 Organization level
 Group level
 Individual level

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

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

37. 5
Insert Figure 1.2 here
37

38. Contribution of various
disciplines to the OB
38

39. Contributing Disciplines to the
OB Field
39
 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
40

41. ORIGINS OF
ORGANIZATIONAL BEHAVIOR
41
 Psychology. Psychological theories have
helped us explain and predict individual
behavior. Many ofthe 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
42
 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 SocialPsychology.


43. Contributing Disciplines to the OB Field (cont’d)
E X H I B I T 1–3(cont’d)
43
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)
44
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
45
 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
46
 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)
47
Anthropology
The study of societies to learn about human beings and
their activities

48. 8
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):
48
Leader
Monitor
Spokesperson
Disturbance handler
Figurehead
Liaison
Disseminator
Entrepreneur
Resource allocator Negotiator

49. 9
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.
49

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

51. personality
51

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

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

54. biological
Heredity
Brain
Physical features
54

55. Cultural factors
55
Situational factors

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

57. Others
Interest
57
Motives

58. Big Five Traits of Personality
58

59. Agreeableness
Extroversion
Emotional stability
Conscientiousness
Openness
59

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

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

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

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

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

65. perception
65

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.
66

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 67

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

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.
69

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 70

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,
71

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- 72

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.
73

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.
74

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.
75