Unit 1 Introduction to OB nhgfdghdhgfjffkfjh.pptx

Concept of OB
• Organizational behavior (OB) is concerned with
analyzing, understanding, predicting, and
managing human behavior in the organization for
improving organizational effectiveness.
• It is the study of what people do in the
organization and how their behavior affects in
organizational performance.
• It is the systematic study of the behavior of
individuals and groups in the organization for
their better performance.
• It is human psychological aspect and directly
concerned with studying human behavior at work.

Concept of OB…
• Human beings have creativity, thinking, and vary in
attitude. In practice it is found that two individuals
do not behave in the same manner in a particular
situation.
• When more number of individuals work together in
an organization they may have different in
knowledge, attitude, perception and experience.
• In some cases they can create conflict which will
provide negative impact in organizational
performance.
• An important function of manager is to understand,
predict and manage human behavior at work for
organizational benefits. For this purpose, managers
must have knowledge of organizational behavior.

Characteristics of OB
Homework

OB System
• OB is the systematic study of the behavior of
employees at individual, groups, and
organizational system levels.
• As a system, organizational behavior involves
four dimensions consisting of inputs,
processing, outputs, and feedback.
• These all activities are affected by changing
environment of the society. Brief descriptions
of OB system are as follows:

OB System…
1. Inputs
• Organizational behavior system begins when
individuals receive information from environment
through five senses consisting of feeling, hearing,
seeing, smelling, and testing.
• In course of regular functioning of the
organization, people receive much information
from different sources. However, some
information is noticed, but most of information is
screened out. People notice things on the basis of
their size, intensity, motion, novelty and
repetition.

OB System…
1. Inputs…
• There are three categories of input variable to the OB
system consisting of individual level variables, group
level variables and organizational level variables.
• Individual level variables involve personal
characteristics, personality, value, ability, emotion,
and attitude of individuals.
• Group level variables involve size of group, group
composition, role status, norms, value, and group
cohesiveness.
• Similarly, organizational level variables involve
organizational structure and culture. They are
independent variables and provide impact on OB
system processing.

OB System…
• 2. Processing
• Processing involves understanding and
interpretation part of OB system
• Processing is the interpretation part of OB system.
The inputs received by the individuals, groups and
organization as a whole are processed together to
bring the outputs.
• The individual process is based on degree of
perception, learning, motivation and decision
making ability of individuals.

OB System…
2. Processing
• Group process is influenced by communication
system leadership and trust, level of conflict,
power and politics, and team work.
• Organizational level process is determined by
human resource policies and practice, work
design, and technology adopted. The
systematic processing of information facilitates
to provide proper response in term of outputs.

OB System…
3. Outputs
• The output components of organizational behaviour involve
productivity, job satisfaction, organization citizenship,
employee turnover, and absenteeism.
• a. Productivity: An organization is said to be productive if
it able to utilize resources in effectively. The proper use of
resources at the time of transferring into output helps to
minimize cost. As such productivity emphasizes both
effectiveness and efficiency.
• b. Absenteeism: Absenteeism is the failure to report the
progress of work to the management in time. It is difficult
for an organization to operate smoothly and to attain its
objectives if employees fail to report of their job. The work
flow is disrupted and sometimes important decision may be
delayed.

OB System…
3. Outputs
c. Turnover: Turnover is the voluntary and involuntary
permanent withdrawal of employees from an organization. High
labour turnover rate increases selection and training costs. All
organizations have some level of turnover which will create
place for new creative employees. However, excess turnover of
employees can disrupt for organizational effectiveness.
d. Job Satisfaction: Job satisfaction is a general attitude of
an employee toward his job. When employees receive expected
rewards and incentives from job it helps to satisfy them. It is
believed that satisfied employees are more productive than
dissatisfied employees.
e. Organizational Citizenship: It is the development of
feeling of belongingness and membership among the employees
in the organization. It is discretionary behaviour that is not a
part of an employee’s formal job requirement.

OB System…
4. Feedback
• Feedback is concerned with evaluation of output of OB
system.
• Organizational behavior is a continuous process up to the
functioning and existence of the organization. Therefore, it
is necessary to evaluate the outcomes of organizational
behavior process. If expected output is gained it would
provide guidance to the manager for future performance.
• 5. Environments
• The implementation of OB system is affected by changing
both internal and external environment of the society.
Internal environment involves owners, board of directors,
employees, organizational resources, and organizational
structure etc. Similarly, external environment involves
political and legal, socio-cultural, economic, and
technological environment.

Levels of OB Analysis…
• The field of organizational behavior involves
multiple levels of analysis. Such different levels of
analysis are necessary for understanding individual
behavior within organizations.
• People always act within the context of their
environment, which includes both objects and
people. The different levels of analysis used in the
field of organizational behavior are:
1. the individual level,
2. the group level, and
3. the organizational level

1. Individual Level Analysis: This level is also
known as micro level analysis. Individuals involve in an
organization to do activities to meet common
objectives.
• All the individuals working in the organization differ
in their traits and characteristics. At the individual
level of analysis, OB involves the study of learning,
perception, creativity, motivation, personality,
turnover, task performance, cooperative behavior,
deviant behavior, ethics, and value, etc.
• In this level, managers need to analyze how
individuals react with changing organizational rules,
regulations, and working procedures and practices.

2. Group Level Analysis: Employees work in an
organization as work group or team. They interact,
cooperate and coordinate each other for achieving
common goals.
• At the group level of analysis, organizational behavior
involves the study of group dynamics, group
performance, intra-group and intergroup conflict and
cohesion, leadership, power and politics, norms,
interpersonal communication, networks, and roles.
• At this level of analysis, organizational behavior draws
upon the sociological and socio-psychological
sciences. In this level, managers need to analyze how
group members interact and react with changing
organizational rules, regulation, and working
procedures and practices.

3. Organizational Level Analysis: This level analysis is
also known as macro-level analysis. At organizational
level analysis, the relationship between organization
and its surrounding environment is studied.
At this level, OB involves the study of organizational
culture, organizational structure, diversity, inter-
organizational cooperation and conflict, change
technology, and external environmental forces.
At this level of analysis, OB draws upon sociology,
anthropology and political science. The behavioral
outcomes show the result in terms of productivity,
absenteeism, turnover, organizational citizenship and
job satisfaction.

Basic Assumptions of OB…
• Organizational behavior is an important element
of social science. Similarly, organizational behavior
is based on a set of fundamental assumptions
revolving around the nature of people and
organization.
• Therefore, for predicting and managing
organizational behavior it is essential to
understand the basic assumption about nature of
individuals and the nature of organizations. The
basic assumption of OB is studied from the
following two perspectives:

1. The Assumption about Nature of People
2. The Assumption about Nature of Organization

1. The Assumption about Nature of People
• All the individuals have separate traits and
quality. They are guided by their special
features. For understanding organizational
behavior, it is necessary to understand basic
assumptions about the nature of people.
The following are the basic assumptions
about nature of individuals:

1. The Assumption about Nature of People…
a. Individual Differences: All the individuals are
different from each other. Every individual has
unique traits and characteristics. Every individual
differs in many ways such as perception, attitude,
intelligence, physique, personality, learning
capability, communicative ability, etc. All the
employees cannot be motivated through a specified
standard behavior. A professional manager needs to
consider individual difference while dealing with
employees.

b. A Whole Person: An individual should be
considered as a whole person. Every individual
involves special skills, likes and dislikes, pride and
prejudices. An individual's way of living in a family
cannot be separated from work life. Similarly,
employee expects all around career development in
the organization. This is why the managers need to
provide their employees with a proper work
environment where they can work hard to progress
and develop their abilities.

c. Motivated Behavior: Motivation is a human
psychological aspect. It is the process of
encouraging employee for better
performance. Every employee expects
motivated behavior from manager. It is the
reason that managers need to understand
about how employees can be motivated for
better performance.

• d. Value of the Person: Employees should
not be treated only as economic tools. All
the employees have feelings, dignity and
respect. They are expecting value and
recognition of their skills and performance
in the organization. Every job needs to be
done with respect and recognition. It
develops the feeling of organizational
citizenship among the employees.

e. Selective Perception: Perception is an individual’s
own view of the world. It is the process of getting
information from environment and attempting to
organize and interpret it for making it meaningful.
Every individual has a unique ways of sensing,
collecting, organizing, and interpreting information
received from environment. The understanding the
concept of selective perception is necessary in order
to know individuals differences at work and to
predict their influences on work behavior.

f. Desire for Involvement: Individuals have desire
for involvement in work. They want to show their
creativity, skills and efficiency while doing assigned
job. They want to face challenges and take credit
on the successful completion of work. Managers
need to understand skills and ability of each
employee. And based on their capability it is
essential to provide opportunity to participate in
planning and decision making.

• For understanding organizational behavior, it is
also essential to understand the nature of the
organization. The following are the assumption
about the nature of the organization:
a. Social System: All the organizations are the part
of social system. Their activities are governed by
social and psychological laws. Individuals behavior is
influenced by their group as well as by their
individual drives. Managers need to understand that
organization is a part of social system and it is
affected by the changing environment.

b. Mutuality of Interest: Mutuality of interest indicates
that both the organization and people need each other.
Organizations are formed and maintained on the basis
of some mutuality of interest among the participants.
• People require organizations to achieve their goals;
similarly, organization needs people to meet its
objectives. Lack of mutual interest causes lack of trust
between people and organization. Therefore,
managers need to consider both organizational goal
and individual goals of employees. Such mutuality of
goals encourages developing good working
environment in the organization.

c. Ethical Treatment: Ethics is the set of moral
principles and rules guiding individual behavior. It is the
basis of determining right or wrong in a given situation.
Ethical behavior of an individual depends upon the
moral standard or codes of conduct determined by the
society. Organization should establish rules, code of
conduct, working procedures and system. It is also
necessary to provide proper training and counseling
both for managers and employees to consider the
ethical behavior.

Contributing Disciplines to the Field
of OB

Emotion and Cognitive Dissonance

What is Emotion?
• Emotion is feeling deriving from one's
circumstances, experience, or relationships
with others. It is an affective state of
consciousness in which joy, sorrow, fear,
hate, etc. is experienced by an individual.
• Strong feeling is directed toward a specific
object, event or people. It is typically
accompanied by physiological and
behavioral changes in human behavior.

What is Emotion?…
• Emotion is a conscious mental reaction that is
directed toward a specific object. It is
accompanied by physiological changes in the
body.
• It is a feeling that is expressed through
physiological functions such as facial expressions,
faster heartbeat, and behaviors such as
aggression, crying, or covering the face with
hands.
• It determines individual personality and behavior.

Cognitive Dissonance
• Cognitive dissonance is the feeling of
uncomfortable tension which comes from
holding two conflicting thoughts in the mind at
the same time. So cognitive dissonance refers
to a situation involving conflicting attitudes,
beliefs or behaviors.
• This produces a feeling of discomfort. When
there is a discrepancy between beliefs and
behaviors, something must change in order to
eliminate or reduce the dissonance.

• In the late 1950s, Leon Festinger proposed the
theory of cognitive dissonance. This theory
sought to explain the linkage between
attitudes and behavior. Festinger argued that
any form of inconsistency is uncomfortable and
that individuals will attempt to reduce the
dissonance.
• Cognitive dissonance is a very powerful
motivator which will often lead us to change
one or other of the conflicting belief or action.

• The discomfort often feels like a tension
between the two opposing thoughts. To
relieve from the tension, we can take one of
three actions:
1. Change our behavior.
2. Justify our behavior by changing the
conflicting cognition.
3. Justify our behavior by adding new
cognitions.

Strategies to Reduce Cognitive
Dissonance

Dissonance…
• People try to seek consistency in their
thoughts, beliefs, and opinions. When there
are conflicts between cognitions, people will
take steps to reduce the dissonance and
feelings of discomfort.
• Broadly, there are three key strategies to
reduce cognitive dissonance. They are focus
on supportive beliefs, reduce conflicting
beliefs, and change the conflicting beliefs.

Dissonance…
1. Focus on Supportive Beliefs:
• One of strategies of reducing cognitive dissonance is
to focus on more supportive beliefs that balance the
dissonant behavior. For example, individuals who
learn that greenhouse release result in global
warming might experience feelings of dissonance if
they drive a polluted vehicle.
• In order to reduce this dissonance, they might seek
out new information that disputes the connection
between greenhouse gases and global warming. This
new information might serve to reduce the
discomfort.

Dissonance…
2. Reduce Conflicting Beliefs:
• Another important strategy is to reduce the
conflicting belief. For example, a man who cares
about his health might be disturbed to learn that
sitting for long periods of time during the day has
linked to a shortened lifespan.
• Since he has to work all day in an office and spends
a great deal of time sitting, it is difficult to change
his behavior in order to reduce his feelings of
dissonance. In order to deal with the feelings of
discomfort, he might take other necessary
measures to maintain health and lifespan.

Dissonance…
3. Change the Conflicting Beliefs:
• An important strategy of reducing cognitive
dissonance is to change conflicting beliefs so that
it is consistent with other beliefs or behaviors.
• Changing the conflicting cognition is one of the
most effective ways of dealing with dissonance.
However, it is also one of the most difficult tasks.
It is more difficult to change deeply held values
and beliefs of an individual.

New Challenges for Managers in the
Field of OB

New Challenges for Managers in the Field of
OB…
• At present managers of business
organizations are facing a number of
behavioral issues. These issues provide both
challenges and opportunities to the
managers. The following are the major
challenges for managers in the organization:

New Challenges for Managers…
1. Responding to Globalization:
• Globalization provides both challenges and scopes
in doing business. It also creates challenges to
business entities to work with people having
difference in culture, language, religion, believes,
tradition, value, etc.
• Globalization affects a managerial skill in two
ways: firstly managers have to manage workforce
having different needs, aspirations and attitudes;
and secondly, managers need to understand the
culture value of local people of different
countries.

2. Managing Workforce Diversity:
• The workforce diversity is one of the emerging issues of
organizational behavior. Workforce diversity refers to the
involvement of heterogeneous types of employees in the
organization having different backgrounds.
• The major challenge of workforce diversity for
organizations is to become more accommodating to
diverse groups of people by addressing their different life
styles, family needs and work styles. If diversity is not
managed properly, there is a possibility of higher
employee turnover.
• It becomes more difficult to manage interpersonal
conflicts. Manager must respect diversity and changing
workforce in the institution.

3.Improving Quality and Productivity:
• Quality is consumers' perception of excellence and the
extent to which they believe the product or service
fulfills their needs and expectations. More and more
managers are confronting to meet the challenges to
fulfill the specific requirements of customers.
• Today’s managers understand that any efforts to
improve quality and productivity must influence their
employees. The employees are not only a major force
in carrying out changes, but also participate actively in
planning and implementing those changes.
• Managers should put maximum effort for meeting the
customer’s requirements by involving everyone from
all the levels and across all the functions.

4. Improving People Skills:
• The increasing level of competition and quality
awareness among customers has demanded high
level of skills and efficiency of employees.
• If employees and executives are not trained to adapt
such changes, the target goals cannot be achieved in
predetermined time.
• Designing an effective performance appraisal system
with the provision of training facilities helps to
upgrade the skills of the employees to cope up the
demands of the external environment. For this
purpose, managers need to train and re-educate low
skilled employees to develop working efficiency.

5. Improving Customer Service:
• Today, majority of organizations are involved in service
sector business. The common characteristic of service
sectors organizations is to make substantial interaction
with customers.
• It is important for all the employees of such organizations
to improve customer service.
• Management needs to create a customer-responsive
culture. OB can help managers for improving
organizational performance. OB provides knowledge to
the managers about how employee attitude and
behavior are associated with customer satisfaction.
• It can provide considerable guidance for managers to
develop friendly environment in the organization.

6. Empowering Employees:
• Empowerment is concerned with providing decision
making authority to the level where actual work is
done.
• The encouragement of employees to participate in
work related decision will enhance their commitment
at work. At present many organizations are using self-
managed teams, where workers operate largely
without superior.
• Managers only play the role of supervisor, advisors,
and facilitators and help their subordinates to do
their task with simple guidance. For this purpose,
managers need to redesign jobs, structure, and
system to manage behavioral aspects of changing
relationship with employees.

7.Managing Change:
• Change is inevitable in dynamic social environment. An
organization can survive and expand business through
flexibility in operation, continuous improvement of
quality and beat its competitor in market place.
• An organization’s employees can be major resource for
change. The major challenge to the manager is to
stimulate their creativity and tolerance for change.
• Management needs to introduce many programs to
cope with change such as downsizing, disposal for poor
performance units, outsourcing employees, etc.
• Managers and employees must prepare themselves
flexible enough to cope with the change. The manager
must encourage innovation and change.

8. Improving Ethical Behavior:
• Ethical behavior is the individual’s personal beliefs
regarding what is right and wrong or good and bad.
Managers need to create an ethically healthy
environment for employees. They should develop
rules, regulations, procedures and system in the
organization. They should value all the employees
and reward for good behavior. They should provide
training to improve ethical behavior.
• Besides, appointing consultants and professionals to
assist the organization for dealing with ethical issues
will ensure positive ethical behavior. Managers need
to create an ethically healthy climate for his
employees where they can do their work effectively.

• Managers and employees must learn to live with
flexibility, spontaneity, and unpredictability. The
knowledge of Organizational Behavior will help to
understand better the current state of a work,
continual change in work process.
• It helps to introduce methods of overcoming
resistance to change process and the ways of
creating a better organizational culture that
facilitates change process.

Unit 1 Introduction to OB nhgfdghdhgfjffkfjh.pptx

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