O B J E C T I V E S AFTER STUDYING THIS CHAPTER AND LISTENING TO MY LECTUER,I HOPE THTAT YOU WILL BE ABLE TO: 1. Define organizational behavior (OB). 2. Discuss the historical perspective of OB.L E A R N I N G 3. OB as a multi Disciplinary Field 4. Describe why managers require a knowledge of OB. 5. The major challenges and opportunities for managers to use OB concepts. 6. Knowledge Management
What Managers Do Managers Individuals who achieve goals through other people. Managerial Activities Managerial Activities •Make decisions •Make decisions •Allocate resources •Allocate resources •Direct activities of others •Direct activities of others to attain goals to attain goals 1–3
Enter Organizational Behavior Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking a system approach
system approach Systematic study of behavior is a meaning to make accurate predictions. By systematic study we mean, Examining relationship. Cause and effects relation. Base our conclusion on scientific method.Systematic study augments intuitions.
Scientific Management.An approach to management which emphases theformulation of precise processes which are regarded asthe best methods to achieve work goals.
The Hawthorne Studies Conducted from 1927-1932 at the Western Electric Hawthorne Works in Chicago Conducted by Harvard Business School Professor Elton Mayo who examined productivity and work conditions The studies grew out of preliminary experiments at the plant On the effect of light on productivity Those experiments showed no clear connection between Productivity and the amount of illumination
The Studies?Variables Affecting Productivity1. Rest Breaks Mayo took 6 women from the assembly line,2. Work Hours segregated from rest of the factory and put them3. Temperature under the eye of a supervisor who was more friendly4. Humidity observer than a disciplinarian Feedback Mechanism Throughout the series of experiments, an observer sat with the girls in the workshop noting all that went on, keeping the girls informed about the experiment, asking for advice and listening to their complaints. Each experiment began by introducing various changes, each of which was continued for a test period of four to twelve weeks.
Conditions and Results Under normal conditions with a 48 hour week, including Saturdays, and no rest pauses. The girls produced 2,400 relays a week each. They were then put on a piece-work for eight hours----Output went UP Two five minute rest pauses, morning and afternoon, were introduces for a period of five weeks-----Output went UP once more The rest pauses were lengthened to ten minutes each----Output went up sharply Six five minute pauses were introduced, and the girls complained that their work rhythm was broken by the frequent pauses----output fell slightly Return to the two rest pauses, the first with a hot meal supplied by the company free of charge----Output went up The girls were dismissed at 4:30 p.m. instead of 5:00 p.m.----output went ip They were dismissed at 4:00 p.m.----output remain the same
The Results Finally all the improvements were taken away and the girls went back to 48 hours working with no piece-work, rest–breaks and no free meals. This state of affairs lasted for a period of 12 weeks. Output was the highest ever recorded averaging 3000 relays a week Confused?
What Happened during the Experiments? Six individuals became a team and the team gave itself wholeheartedly and spontaneously to co-operation in the experiment. They were themselves satisfied that they were working under less pressure than ever before. The group had considerable amount of freedom of movement. They were not pushed around or bossed by anyone. Under these conditions they established an increased sense of responsibility and instead of discipline from higher authority being imposed, it came from within the group.
Organization behavior: Past, present and future. Organizational behavior is a multi-disciplined science. Human relation approach Psychology. Social psychology. Anthropology. Political Science.
Human relation approach: The study of interaction among people with The study of interaction among people with the aim of developing mutually the aim of developing mutually beneficial outcomes beneficial outcomes . Psychology: The systematic study of human behavior & cognitive events. Social Psychology: Is concerned with understanding behavior in a group context.
Anthropology:Is to study the society & their culture. Political science: Focuses on the behavior of individuals and groups in a political environment.
Why study OB Understanding Organizational Event ORGANIZATIONAL BEHAVIOR RESEARCH Influencing Predict Organizational Organizational Event Event
Challenges and Opportunities of OBChallenges?Opportunities?
Challenges and Opportunity for OB Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Responding to the Labor Shortage Improving Customer Service Improving People Skills Empowering People Coping with “Temporariness” Stimulation Innovation and Change Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior
Knowledge management Any Structural activity that improves an organizations capacity to acquire, share and use knowledge in ways that improve its survival and success.Intellectual Capital: The sum of an organizations human capital, structural capital and relationship capital
Human Capital: This is the knowledge that employees possess and generate including their skills, experience and creativity. Structural Capital: This is the knowledge captured and retained in an organizations system and structures. It is the knowledge that remains after all the human capital has gone home. Relationship Capital: This is the value derived from an organizations relationships with customer, suppliers and other external stakeholders.
Some Important termsProductivityA performance measure that includeseffectiveness and efficiency. Effectiveness Achievement of goals. Efficiency The ratio of effective output to the input required to achieve it.
AbsenteeismThe failure to report to work. Turnover The voluntary and involuntary permanent withdrawal from an organization.
Job satisfactionA general attitude toward one’s job, the differencebetween the amount of reward workers receive and theamount they believe they should receive.