Organizational

Behavior

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 After studying this chapter, you should
be able to:
1. Describe what managers do
2. Define organizational behavior (OB)
3. Explain the value of the systematic study of OB
4. Identify the contributions made by major
behavioral science disciplines to OB
5. List the major challenges and opportunities for
managers to use OB concepts

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 What
What Managers
Managers Do
Do
Managers
Individuals who achieve goals through other people

Managerial
ManagerialActivities
Activities
Make
Makedecisions
decisions
Allocate
Allocateresources
resources
Direct
Directactivities
activitiesofofothers
othersto
to
attain
attaingoals
goals

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 Where
Where Managers
Managers Work
Work
Organization

A consciously coordinated social unit, composed of

two or more people, that functions on a relatively
continuous basis to achieve a common goal or set of
goals

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Functions of Management

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 Management
Management Functions
Functions (contd)
(contd)
Planning
A process that includes defining
goals, establishing strategy, and
developing plans to coordinate
activities

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 Management
Management Functions
Functions (contd)
(contd)
Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to
be grouped, who reports to whom, and
where decisions are to be made

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 Management
Management Functions
Functions (contd)
(contd)
Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts

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 Management
Management Functions
Functions (contd)
(contd)
Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations

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 Mintzbergs
Mintzbergs Managerial
Managerial Roles
Roles

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 E X H I B I T 11
by H. Mintzberg. Reprinted by permission of Pearson Education.
E X H I B I T 11

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 Mintzbergs
Mintzbergs Managerial
Managerial Roles
Roles (contd)
(contd)

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 E X H I B I T 11 (contd)
by H. Mintzberg. Reprinted by permission of Pearson Education.
E X H I B I T 11 (contd)

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 Mintzbergs
Mintzbergs Managerial
Managerial Roles
Roles (contd)
(contd)

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.
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 Management
Management Skills
Skills
Technical Skills
The ability to apply specialized
knowledge or expertise
Human Skills
The ability to work with,
understand, and motivate other
people, both individually and
in groups

Conceptual Skills
The mental ability to analyze and
diagnose complex situations

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 Effective
Effective Versus
Versus Successful
Successful Managerial
Managerial
Activities
Activities (Luthans)
(Luthans)

1.1. Traditional
TraditionalManagement
Management
Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
2.2. Communication
Communication
Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
3.3. Human
HumanResource
ResourceManagement
Management
Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,
and
andtraining
training
4.4. Networking
Networking
Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others
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 Allocation
Allocation of
of Activities
Activities by
by Time
Time

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 Enter
Enter Organizational
Organizational Behavior
Behavior

Organizational Behavior (OB)

A field of study that investigates the impact that
individuals, groups, and structure have on
behavior within organizations, for the purpose of
applying such knowledge toward improving an
organizations effectiveness

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2/9/17
 Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
Psychology
The science that seeks to measure, explain, and
sometimes change the behavior of humans and other
animals

E X H I B I T 13 (contd)
E X H I B I T 13 (contd)

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 Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
(contd)
(contd)
Sociology
The study of people in relation to their fellow human
beings

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 Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
(contd)
(contd)
Social Psychology
An area within psychology that blends concepts from
psychology and sociology and that focuses on the influence
of people on one another

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 Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
(contd)
(contd)
Anthropology
The study of societies to learn about human beings and
their activities

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 Challenges
Challenges and
and Opportunities
Opportunities for
for OB
OB

Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Overseeing movement of jobs to countries with
low-cost labor
Managing people during the war on terror
Managing Workforce Diversity :
Wide range of workforce

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 Major
Major Workforce
Workforce Diversity
Diversity Categories
Categories

Gender
Gender
National
National
Disability
Disability Origin
Origin

Age
Age
Religion
Religion

Domestic
Domestic
Partners
Partners

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 Challenges
Challenges and
and Opportunities
Opportunities for
for OB
OB (contd)
(contd)

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

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 Challenges
Challenges and
and Opportunity
Opportunity for
for OB
OB (contd)
(contd)

Improving people skills

Empowering people
Stimulating innovation and change
Coping with temporariness
Working in networked organizations
Helping employees balance work/life conflicts
Improving ethical behavior
Managing people during the war on terrorism

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 AA Downside
Downside to
to Empowerment?
Empowerment?

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 Basic
Basic OB
OB Model,
Model, Stage
Stage II
Model
An abstraction of reality
A simplified representation of
some real-world phenomenon

E X H I B I T 1-6
E X H I B I T 1-6

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 The
The Dependent
Dependent Variables
Variables
Dependent Variable
A response that is affected by an independent variable (what
organizational behavior researchers try to understand)

x
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 The
The Dependent
Dependent Variables
Variables (contd)
(contd)

Productivity
A performance measure that
includes effectiveness and efficiency

Effectiveness
Achievement of goals

Efficiency
Meeting goals at a low cost

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 The
The Dependent
Dependent Variables
Variables (contd)
(contd)

Absenteeism
The failure to report to work

Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization

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 The
The Dependent
Dependent Variables
Variables (contd)
(contd)

Deviant Workplace Behavior

Voluntary behavior that violates
significant organizational norms and
thereby threatens the well-being of the
organization and/or any of its members

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 The
The Dependent
Dependent Variables
Variables (contd)
(contd)

Organizational Citizenship Behavior

(OCB)
Discretionary behavior that is not
part of an employees formal job
requirements, but that nevertheless
promotes the effective functioning of
the organization

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 The
The Dependent
Dependent Variables
Variables (contd)
(contd)

Job Satisfaction
A general attitude (not a behavior) toward ones job; a
positive feeling of one's job resulting from an evaluation of
its characteristics

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 The
The Independent
Independent Variables
Variables
Independent Variable
The presumed cause of some change in the dependent
variable; major determinants of a dependent variable

Independent
Independent
Variables
VariablesCan
Can Be
Be

Individual-Level Group-Level Organization

Organization
Individual-Level Group-Level System-Level
Variables
Variables Variables
Variables System-Level
Variables
Variables

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 Basic OB
Model, Stage
II

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Models of Organizational Behavior

3.07.2015 36
 An organizational Behavior
System

Organizations achieve their goals by

creating, communicating, and
operating an organizational behavior
system.
The primary purposes of
organizational behavior systems are
to identify and then help modify the
major human and organizational
variables that affect the results
37
 Elements of the System

a) The philosophy and values: It means

an integrated set of assumptions and
beliefs about the way things are of the
organization, the purposes of these
activities and the way they should be. The
philosophies may be autocratic,
custodial, supportive etc. The philosophy
of organizational behavior originated from
two sources- Fact premises and Value
premises.

1. Fact premises represent our

descriptive view of how the world
behaves. They are drawn from both
behavioral science research and
38 our
2. Value premises represent our view of
the desirability of certain goals and
objectives . These are a variable beliefs
we hold and therefore under our control.
b) Vision: It means a challenging portrait
of what the organization and its members
can be a possible and desirable future. It
basically focused on achieving long-term
goals and objectives.
c) Mission: It identifies the business it is in
the market niches it tries to serve the
types of customers it is likely to have, and
the reasons for its existence. In contrast
to vision, mission statements are more
descriptive and less future oriented.

39
d) Goal: Goals are relatively concrete
formulations of achievements the
organization is aiming for within set
periods of time, i.e.. one to five years.
Goals may exist at the individual , group
and larger organizational level. Goals are
more specific.

40
 An Organizational Behavior System
Managements
Philosophy, Values, Vision, Mission, Goals

Organizational Culture
Formal Organization Social Environmen

Leadership,
formal Organization Communication
Group dynamics

Quality of work life

Motivation
Outcomes:
1.Performance
2.Employee satisfaction 41
Philosophy , values, vision, mission, goals
all help to create a recognizable
organizational culture. This culture also a
reflection of the formal organization with
its formal policies, structures and
procedures and the existing social and
cultural environment. The formal and
informal organizations provide the glue
that binds the varied elements of the
institution into an effective working team.

Managers are then expected to use a

leadership style, communications skills
and their knowledge of interpersonal and
group dynamics to create an appropriate
quality of work life for the employees.
42
Theory X, Theory Y:
In his 1960 book, The Human Side of
Enterprise, Douglas McGregor proposed two
theories by which to view employee
motivation. He avoided descriptive labels
and simply called the theories Theory X and
Theory Y. Both of these theories begin with
the premise that management's role is to
assemble the factors of production,
including people, for the economic benefit of
the firm. Beyond this point, the two theories
of management diverge.

43
Theory X assumes that the average person:
1. Dislikes work and attempts to avoid it.
2. Has no ambition, wants no responsibility, and would rather follow than lead.
3. Is self-centered and therefore does not care about organizational goals.
4. Resists change.
5. Is gullible and not particularly intelligent.

44
Theory Y makes the following general
assumptions:
1. Work can be as natural as play and rest.
2. People will be self-directed to meet their work
objectives if they are committed to them.
3. People will be committed to their objectives if
rewards are in place that address higher needs
such as self-fulfillment.
4.Under these conditions, people will seek
responsibility.
5. Most people can handle responsibility because
creativity and ingenuity are common in the
population.
45
 Models of OB
1. Autocratic Model
2. Custodial Model
3. Supportive Model
4. Collegial Model
5. System Model

46
1. Autocratic Model:
Autocratic model depends on power. The
people who are in command must have
the power to demand you do this or
else, meaning that an employee who
does not follow order will be penalizes.

In the autocratic environment the

managerial orientation is formal, official,
authority. This authority is delegated by
right of command over the people to
whom it applies.

47
Management believes that it knows what is
best and that the employees obligation is
to follow orders. It assumes that
employees have to directed, and pushed
into performance and such prompting is
managements task.

Under autocratic conditions the employee

orientation is obedience to boss not
respect for a manager. The psychological
result for employees is dependence on
their boss, whose power to hire , fire etc.
48
2. Custodial Model:
In autocratic model employees did not talk
back to their boss, but they certainly
thought back.

A successful custodial approach depends on

economic resources. The resulting
managerial orientation is toward money to
pay wages and benefits. Since employees
physical needs are already reasonably
met, the employer looks to security needs
as a motivating force. If an organization
does not have the wealth to provide
pensions and pay other benefits, it cannot
follow a custodial approach. 49
The custodial approach leads to employee
dependence on the organization. Rather
than being dependent on their boss for
their weekly bread, employees now
depend on organizations for their security
and welfare.

The custodial model is describe in its

extreme in order to show its emphasis on
material rewards, security, and
organizational dependence.
50
3. Supportive Model:
The supportive model of organizational
behavior had its origins in the
principle of supportive relationships.
It depends on leadership instead of
power or money .

Through leadership, management

provides a climate to hope employees
grow and accomplish in the interests
of the organization the things of which
theft are capable.
51
The leader assumes that workers are
not by nature passive and resisted to
organizational needs, but that they
are made so by an inadequately
supportive climate at work. They will
take responsibility , develop a drive
to contribute, and improve
themselves if management will give
them a chance.
Here managements concentration is to
support the employees job performance
rather than to simply support employee
benefit payments as in the custodial
approach. Employee says we instead of
they when referring to their 52
organization.
4. Collegial Model:
A useful extension of the supportive model
is the collegial model. The term collegial
relates to a body of people working
together cooperatively. The collegial model
embodies a team concept.

The collegial model depends on

managements building a feeling of
partnership with employees. The result is
that employees feel needed and useful.
They feel that managers are contributing
also , so it is easy to accept and respect
their roles in the organization. Managers
are seen as joint contributors rather than
53
as bosses.
 The managerial orientation is
toward teamwork and management
is the coach that builds a better
team. The employee response to
this situation is responsibility.
5. System Model: Under the system
model managers try to convey to
each worker, you are an important
part of our whole system. We
sincerely care about each of you.
We want to join together to achieve
a better product or service, local
community and society at large. We
will make every effort to make
products that are environmentally
friendly. 54
The role of a manager becomes one of
facilitating employee accomplishments
through a variety of actions. These
actions are
1. Support employee commitment to short-
and long-term goals.
2. Coach individuals and groups in
appropriate skills and behaviors.
3.Model and foster self-esteem.
4. Show genuine concern and empathy for
people.
5. Offer timely and acceptable feedback.
6. Help individuals identify and confront
issues in ethical ways.

55