INTRODUCTION

WHAT IS ORGANIZATIONAL
BEHAVIOR?
Chapter 01
The Importance of Interpersonal Skills
 Until the late 1980’s business schools focus more on
technical aspects of management i.e. Economics,
Accounting, Finance and Quantitative techniques
 But now over the past three decades faculty has realized
the importance of interpersonal skills.
If you CAN’T COMMUNICATE EFFECTIVELY you CAN’T SELL
YOUR IDEA or THOUGHT or chances of promotion is low.
Interpersonal Relationships

 Developing mangers’ interpersonal skills help

organizations to attract and keep high performing
employees.
 Good interpersonal skills help organization to make
workplace more pleasant, which in turn makes it easier to
hire and keep qualified people.
 Companies with good reputations focus equally on people
skills as they focus on technical skills.
Good Interpersonal Relationships
Hard Skills v.s Soft Skills
 A certification  Interpersonal Skills
 Typing speed  Leadership Skills
 Computer skills  Team working
 MS Office, Adobe, MatLab,  Problem solving
EViews etc
 Motivation
 Coding Ability (Programming)
 Software Development
What Managers Do

 They (Manager) get things done through other

people.
 They make decisions, allocate resources, and direct
activities of others to attain goals.
 Manager works in organization:
 Organization is a consciously coordinated social unit, composed
of two or more people, that functions on relatively continuous
basis to achieve common goal or set of goals.
 They simply perform Four Management Functions:
 Planning, Organizing, Leading and Controlling.
Management Functions
 In early of part of twentieth century, French Industrialist
Henri Fayol wrote that all managers perform FIVE
management functions: Planning, Organizing,
Commanding, Coordinating and Controlling.
 But now we have FOUR Functions in condensed form:
ACTVITY

 In last five production lines ‘Jinko Solar Company’ has

produced 10 batches of solar panel. Out of each 100 batch
15 solar panels were damaged.
Apply Four Management Functions
Planning Organizing Leading Controlling
Set Goals: Distribute resources Connect with people on Establish
 Minimize the defects to according to plan. interpersonal level Performance
0.5%  Request HR Dept: to arrange Standards
trainings for Assembly Line Communicate and
How to achieve: Workers. motivate them for zero Compare with actual
 Motivate or Give defects. results
trainings to employees Training Type: Six Sigma
 Adopt Zero Defect Policy Ensure smooth conduct Take corrective
Procure high quality of trainings measure if damages
material are still more than set
Ensure Quality Material goals
Production Manager will
facilitate the training Assure readiness for the
training
 Manager Finance will set
budget for the training with
Production Manager
Management Roles [Henry Mintzberg in late 1960s]

INTERPERSONAL INFORMATIONAL DECISIONAL

Monitor Entrepreneur
Figurehead

Disseminator Disturbance Handler

Leader

Spokesperson Resource Allocator

Liaison
Negotiator
Interpersonal Roles
 As a manager, they have social, ceremonial and legal responsibilities.
Figurehead  Manager is expected to be a source of inspiration.
 People look at them.

 Managers are expected to provide direction and leadership.

 Build relationships with subordinates & communicate, motivate and
Leader coach them.
 Hiring, Firing, motivating, and disciplining employees.
 Maintain networks with outside organization who helps managers and
Liaison
provide information.
 Build external contacts
 Network effectively on behalf of your organization
Informational Role

 Manager regularly seek out information related to organization &

industry,
Monitor  Looking for relevant changes in the environment.
 Monitor team, in terms of both their productivity & their well-
being.

 Transmit information to colleagues and team that manager has

Disseminator collected from internal or external sources.

Transmit information about organization to outsiders.

Spokesperson  Media, Public Relations etc
Decisional Role

 Act as initiator, designer and encourage change & innovation.

Entrepreneur  Solving problems, generating new ideas, and implement them.

 When an organization hits an unexpected roadblock or difficulties,

Disturbance
manager must take charge.
Handler  Help and mediate disputes within organization.

Resource Allocate resources of all types including time, funding, equipment and
Allocator human resource.

 Represent organization in major negations: with union, staff,

Negotiator contractors, bidders, regulatory authorities etc
Management Skills

Technical Skills
• Ability to apply specialized knowledge or expertise i.e. engineering,
programming, computer skills and other expertise ( Hard Skills)

Human Skills
• An Ability to understand, communicate with, motivate, and support other
people. (Interpersonal Skills)

Conceptual Skills
• Mental Ability to analyze and diagnose complex situations. Decision
makers. Plan and execute bigger plans.
Organizational Levels
Level of Management & Management Skills
Effective Vs. Successful Managers

Manager generally involves in four managerial

activities:
1. Traditional Management(DM, Planning and Controlling)
2. Communication (Exchange routine information and
processing paper work)
3. Human Resource Management (Motivating,
disciplining, managing conflict, staffing, and training)
4. Networking (Socializing, Politicking, and interacting with
outsiders)
Successful Managers: In terms of speed of promotion within their organization
* Research among more than 450 Managers
What is Organizational Behavior ?

 Organizational Behavior is the study of the way people

interact within an organization.
→ Collective behavior of employees towards people, structure,
technology and other environmental factors.
 Study of what people do in an organization and how their
behavior affects the organization’s performance.”
Enter Organizational Behavior

 Organizational Behavior investigates the impact that individuals, groups

and structure have on behavior within organizations.
 OB studies three determinants of behavior in organizations:

Purpose of this study is: It helps in applying such knowledge toward improving
an organization’s effectiveness.
OB also includes:
Workplace Conditions
BEST WORKPLACE ENVIRONMENT GOOGLE
 Complementing Intuition with Systematic Study

For Example: If your boss is behaving like this with one of your colleague.
Why he is behaving in such a way?

Systematic study suggests: The behavior is not random, it carries certain

fundamental patterns.
And we can predict the behavior of person by using systematic study.
How to predict BEHAVIOR through SYSTEMATIC STUDY

 Patterns of behavior can be identified by the observation

over a time period, examining the behavior, looking for
cause and effect and searching for specific evidence.

Evidence Based Management

 Intuition is a feeling or thought you have about something
without knowing why you feel that way.
 It is the ability to know or predict something directly without
analytic reasoning.
 Simply we say “gut feeling/ instinct” or “hunch”.
Disciplines That Contribute to the OB Field
 OB is an applied behavioral science built on contributions
from a number of behavioral disciplines.
Psychology

• Contribution mainly at the individual level. How one individual behaves.

Social Psychology

• How group of people behave: Social Cognition, Affective and Behavior

Sociology

• The study of society, including patterns of social relationships, social interaction, and
culture.

Anthropology

• The study of human societies and cultures and their development.

There Are Few Absolutes in OB

 OB is unlike fundamental science not as physics chemistry.

 Human beings are complex: Two people often act very
differently in the same situation, and the same person behave
same in a situations.
 Not every one is motivated by money, and people may
behave differently at religious service or any other activity.
 OB reflect situational or contingency, condition.

X Contingency/
Situation Y
Contd..

 Some people prefer challenging/complex job over simple job

and vice versa.
 One person may love team lead position but other may not.
 For one Medical Benefits are attractive for other Pension.
Challenges and Opportunities for OB

 Nowadays organizations are dynamically changing and has brought dramatic

changes in organizations:
 In terms of:
 Older Employees
 More Women in workforce
* Source: Engage Women Report
 People from different color, religion, caste, geography etc..
 Heavy use of temporary workers, wage gap

 Global competition require employees to be more flexible and cope up with rapid
change.
 Working and managing during uncertain times. [Recession/ Financial Crisis]
 Challenges and Opportunities for OB

Responding to Economic Pressures

Responding to Globalization

Managing Workforce Diversity

Improving Customer Service

Improving People Skills

Stimulating Innovation and Change

Coping with “Temporariness”

Working in Networked Organizations

Helping Employees Balance Work-Life Conflicts

Creating Positive Work Environment

Improving Ethical Behavior

Responding to Economic Pressures

 Recession in 2008 results in Layoffs and Job Losses were widespread, and those
who survived are often asked to accept pay cuts.

 Everyone can run a company when business is booming. In crisis situation

managers are in frontline: they have to fire employees, pay cuts and even they are
worried about their own future.
 In bad times decision making is more tough & challenging.
 Recently HBL served early retirement to 144 employees, over 55 years of age.
[Employees has given 25 years of life to HBL]
 In the past 60,000 jobs lost in a single day.
 i.e. Nokia shift production plant from Germany to Romania, where labor costs are lower.
 Result in loss of 2,300 jobs.
Responding to Globalization

 Organizations are no longer constrained by national boarders.

 i.e. Shan Foods TVC 2017

 Working with people from different cultures

 Increased Foreign Assignments (Cultural Sensitivity Trainings, Language etc.)
 Movement of jobs to countries with Low-Cost Labor [Developed to developing countries]
Managing Workforce Diversity
Adopting people who are different.
Workforce Diversity
 Gender Diversity
 Racial Diversity
 Ethnic Groups
 Individuals with variety of physical or psychological abilities, and people who differ in
age and sexual orientation.
 India will likely to provide the largest increase in the global labor force over next few
decades.
 Immigrants and refugees in different countries.
Improving Customer Service

 One of the customer of Citibank named “Nita Shah”. She has forgotten her
Citibank card in one of the store in morning time. Store has been closed by 10:00
and She realized late in the night that her bank card is missing.
 Her flight was early in the morning 6:00am. Store & Banks is also closed.
 She was panicking and called customer care of Citibank and cancelled her previous
card and told them about her urgent need of the card at Airport.
Stimulating Innovation and Change

 In this dynamic world without change you can not survive. Organizations need to take bold
measures to survive.
 Photography— a popular culture was pioneered by the Kodak.
 Kodak Companies wiped out in ‘Digital Revolution’
 The top managers’ head were in the sand. [Ostrich Strategy]

 Focus on continuous learning and improving the quality, be flexible and beat the
competition.
 Be creative and have tolerance for change.
Coping with “Temporariness”

 Technology advancement has triggered organization to hire flexible and fast

employees. [In result it will reduce the cost]
 Nowadays jobs are continually being redesigned.
 Based on flexible timings, telecommuting, stressed workweeks

 Jobs are being subcontracted out to other firms.

 Seasonal products: Agricultural, Farming, Event Management, Eid, Christmas. Black Friday, Graphic
Designing.
 Today companies hire computer specialists, creative people, legal experts on temporary basis.

 Job Description is continuously changing

 Challenge is worker need to continually update their knowledge, skills to perform new
job requirements.
Working in Networked Organization

 Employees are connected through different networks, even though they miles apart.
 Via computer to workplace around globe.
 Software programmers, graphic designers, system analysts, technical writers, photo researchers, book
and media editors, and medical transcribers etc..

 In these type of organization Manager’s job is challenging. Managers requires different

techniques to motivate and lead people at virtual locations.
Helping Employees Balance Work-Life Conflicts

 In 1960s or 1970s employees used to work 08 to 09 hours—throughout Monday to

Friday.
 But today’s workforce is not willing to do work in that way.
 Employees are now complaining if their work time is blurred.

 If we talk about global organizations—means the world never sleeps.

 At any time of the day General Electric employees are working somewhere.
 Global firms are on call 24 hours a day.
Work Life Balance
 Dual career couples (Take care of home, spouse, children, parents and friends)
 Flexible working hours (Flexibility in work schedule)
 Telecommuting
 Child care centers
 Leave your work at work
 Learn to say no
 Employee & Family Assistance Programs
 On site health and counselling services
 Paternity Leave and Maternity Leave
Maternity Leave & Paternity Leave

 Maternity leave.– (1) Maternity leave may be granted on full pay, outside the
leave account, to a female civil servant to the extent of ninety days in all from
the date of its commencement or forty-five days from the date of her
confinement, whichever be earlier.
 6 weeks pre-natal & 6 weeks post-natal

 Such leave may not be granted for more than three times in the entire service of
a female civil servant except in the case of a female civil servant.
 Beyond the third one, the female civil servant would have to take leave from
her normal leave account.
 In case of death of husband:
 A female employee shall, on the death of her husband, be granted special leave when applied for on
full pay, for a period not exceeding 180 days
Paternity Leave

 A male Government employee may be granted Paternity Leave up to a

maximum of 15 days.
 Up to FIFTEEN days.
 Either 07 days before or 07 after.

 Adoption leave is also option up to three months.

Creating a Positive Workplace Culture
 Fostering positive workplace culture.
 Motivate talent & provide them platform [Unlock potential]
 Open Door Policy
 Arrange Healthy Competitions
 Celebrate the happiness (Eves etc)

 Motivate employees to be volunteer in different activities.

Improving Ethical Behavior

 The competitions are generally characterized by “ends justify means”—but

organizations are required to promote healthy competition, so employee may not be
involved in questionable practices. [Ethical Dilemmas & Ethical Choices]

 Don’t use shortcuts to advance yourself i.e. promotions and don’t let others to use you.

 Common unethical behaviors:

 Using office resources for personal use.
 Employee Theft
 Misuse of company time
 Violating company policies
A Basic OB Model
Citizenship Behavior

 “Going above and beyond work requirement”

 We can look company like a little city and we begin to look employees as citizens.

 Citizenship behavior is discretionary that is not a part of an employee’s formal job

requirements, but it’s employee’s willingness to go extra mile.
For Example:

 Helping coworker with a project

 Switching vacation dates with another person
 Attending voluntary meetings and workshops
 Keep staff up to dated about new updates
 Helping organization in building networks.
Withdrawal Behavior

 Behavior that is somehow below the task requirement.

 It is set of actions that employees take to separate themselves from the organization.
For Example:
Physical Withdrawal
 Showing up late and leaving early
 Failing to attend meetings
 Longer breaks (lunch, prayers etc.)
 Absenteeism
 Employee Turnover
Psychological Withdrawal
 Engage in non-work related conversations
 Neglecting job tasks
 Passive compliance of tasks
Group Cohesion

Group Cohesion:
 Group cohesion is extent to which members of the group support and validate one
another at work.
 Employee trust one another
 Loyal to each other
 Seek common goals

Group Functioning: (Group cohesion lead to positive group functioning)

 Group functioning refers to quantity and quality of a group’s work output.
 Group is functioning effectively when the group stay focused on a core task and achieve its ends as
specified.
Productivity

Productivity requires both effectiveness and efficiency.

 Effectiveness:
 Accomplish the expected results.

 Efficient:
 Performing a functioning in the best possible manner with the least waste of time and
efforts.
 Minimum input of resources and maximum output.
Organizational Survival

 Successful organizations are those, which are capable of achieving their goals and
objectives over time.
 Organization’s existence and growth [Sustainability]
 How well fits the organization and responding it in a better way.
Chapter 01 Completed 