ORGANIZATIONAL

BEHAVIOR.

CHAPTER 2 : MANAGING PEOPLE AND ORGANIZATION.

LEARNING OUTCOMES
1• EXPLAIN MANAGERIAL PERSPECTIVES ON ORGANIZATIONAL
BEHAVIOR?

2• DESCRIBE THE MANAGER’S JOB IN TERMS OF MANAGERIAL

FUNCTIONS, ROLES, AND SKILLS?

3• DESCRIBE THE FOUR MAIN FORCES IN THE ENVIRONMENT

THAT POST THE MOST OPPORTUNITIES AND PROBLEMS FOR
ORGANIZATIONS TODAY ?

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 4. Discuss how to manage for effectiveness
from the perspective of organizational
behavior.

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MANAGERIAL PERSPECTIVES ON ORGANIZATIONAL
BEHAVIOR
. All organizations have managers with titles like marketing manager,
director of public relations, vice president for human resources, and plant
manager. But probably no organization has a position called organizational
behavior manager.
. By understanding organizational behavior concepts, managers can better
understand and appreciate the behavior of those around them.
For example, most managers in an organization are directly responsible for
the work-related behaviors of a set of other people—their
immediate subordinates.

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THUS, MANAGEMENT AND ORGANIZATIONAL BEHAVIOR ARE
INTERRELATED IN MANY WAYS. UNDERSTANDING AND PRACTICING
MANAGEMENT WITHOUT CONSIDERING THE FIELD OF ORGANIZATIONAL
BEHAVIOR IS ESSENTIALLY IMPOSSIBLE. AND ORGANIZATIONAL BEHAVIOR
ITSELF CAN PROVIDE A USEFUL SET OF TOOLS AND PERSPECTIVES FOR
MANAGING ORGANIZATIONS MORE EFFECTIVELY.

THE MOST WIDELY ACCEPTED APPROACHES, HOWEVER, ARE FROM THE

PERSPECTIVES OF BASIC MANAGERIAL FUNCTIONS, COMMON
MANAGERIAL ROLES, AND FUNDAMENTAL MANAGERIAL SKILLS. ARE AS
FOLLOW:

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 MANAGERIAL FUNCTIONS

The four basic managerial functions in organizations.

➢ Planning.
➢ Organizing.
➢ Leading.
➢ Controlling.
PLANNING:
THE MANAGERIAL FUNCTION OF PLANNING IS THE PROCESS OF
DETERMINING THE ORGANIZATION’S DESIRED FUTURE POSITION AND
DECIDING HOW BEST TO GET THERE.

IT PLAYS A MAJOR ROLE IN ENVIRONMENTAL SCANNING, AND

CREATIVITY AND MOTIVATION INFLUENCE HOW MANAGERS SET
GOALS, STRATEGIES, AND TACTICS FOR THEIR ORGANIZATION.

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ORGANIZING:

▪ The managerial function of organizing is the process of designing

jobs, grouping jobs into manageable units, and establishing
patterns of authority among jobs and groups of jobs.
▪ This process designs the basic structure, or framework, of the
organization.
▪ , the processes and characteristics of the organization itself are a
major theme of organizational behavior.

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 LEADING:

Leading is the process of motivating members of the

organization to work together toward the organization’s
goals.
Major components of leading include motivating
employees, managing group dynamics, and leadership.
A manager must hire and train employees.

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 CONTROLLING:
▪ The process of monitoring and correcting the actions of
the organization and its people to keep them headed
toward their goals.
▪ A manager has to control costs, inventory,
▪ The behavioral processes and characteristics play an
important role in carrying out this function.

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 MANAGERIAL ROLES
Mintzberg identified ten basic managerial roles
clustered into three general categories.
Interpersonal roles Informational role Decisional roles
Entrepreneur

figurehead Monitor
Disturbance
handler

leader Desseminator Resource allocator

liaison Spokesperson Negotiator

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 INTERPERSONAL ROLE

the relationships that a manager has to have with

others. The three roles within this category
are figurehead, leader and liaison.

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INFORMATIONAL ROLE
Informational roles are managerial roles that involve collecting, sharing, and transmitting
information. These roles help managers achieve organizational goals

Monitor: who actively seek for information

Dessiminator: who transmits the information:
Spokesperson: who speaks for the organization.
 DECISION MAKING ROLES
Decisional roles are managerial roles that involve making decisions that impact an organization
▪ Entrepreneur: who volantarily initiates program.
▪ Disturbance handler: who helps settle disputes between various parties,
▪ Resource allocator: who decides who will get what—how resources in the
organization will be distributed among various individuals and groups.
▪ Negotiator: represents the organization in reaching agreements with other
organizations,

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 MANAGERIAL SKILLS

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 TECHNICAL SKILLS:

▪ Technical skills are those skills necessary to accomplish

specific tasks within the organization. Assembling a
computer, developing a new formula for a frozen food
additive, and writing a press release each require technical
skills.

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INTERPERSONEL SKILLS

▪ Interpersonal skills comprise the manager’s ability to

communicate with, understand, and motivate individuals and
groups.

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CONCEPTUAL SKILLS

▪ Conceptual skills refer to the manager’s ability to think in the

abstract. A manger with strong conceptual skills is able to see the
“big picture.”
▪ Managers with strong conceptual skills can see opportunities that
others miss

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DIAGNOSTIC SKILLS

▪ Diagnostic skills allow the manager to better understand

cause-and-effect relationships and to recognize the optimal
solution to problems.

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MANAGERIAL CHALLENGES
CHALLENGE NO 1 :THE CHANGING SOCIAL
AND CULTURAL ENVIRONMENT.
▪ Developing Organizational 1. An increasingly diverse workforce
Ethics and Well-Being Diversity refers to differences in age,
▪ Organizational ethics are the gender, race, ethnicity, religion,
beliefs, moral rules, and values, sexual orientation, socioeconomic
which guide managers and staff to
behave so as to enhance the well-
background, and
being of the individuals and groups capabilities/disabilities.
within the organization, the
organization itself, and the
community.

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CHALLENGE 2: THE EVOLVING GLOBAL
ENVIRONMENT

▪ Managers must understand how cultural differences influence organizational

behavior in different countries. Management functions become more complex as
the organization’s activities expand globally, and coordination of decision-
making and organizational issues becomes a necessity. Managers must
understand the requirements of foreign markets and how cultural differences
impact organizational issues such as compensation packages, evaluation, and
promotion policies. Two important challenges facing global organizations are to
appreciate the differences between countries and then to benefit from this
knowledge to improve an organization’s behaviors and procedures.

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CHALLENGE 2: THE EVOLVING GLOBAL
ENVIRONMENT

▪ Understanding Global Differences:

Companies must learn about many different kinds of factors when they operate globally.
1. There are problems related to understanding organizational behavior in different global settings.
Organizational behavior becomes especially complex at a global level because the attitudes,
aspirations, and values of the work force differ from country to country.
2. Problems of coordinating the activities of an organization to match its environment become much
more complex as an organization’s activities expand across the globe.
3. In many cases, global organizations locate in a particular country abroad because this allows them to
operate more effectively, but in doing so, also has major effects on their home operations.

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 GLOBAL LEARNING
▪ Global learning is the process of acquiring and learning the skills, knowledge, and organizational
behaviors and procedures that have helped companies abroad become major global competitors.
To respond to the global challenge, more and more companies are rotating their employees to
their overseas operations so they can learn firsthand the problems and opportunities that lie
abroad. Expatriate employees are those who live and work for companies located abroad. These
employees assist their organizations by:
▪ 1. Learning about the sources of low-cost inputs and the best places to assemble their
products throughout the world.
▪ 2. Expatriate managers in functions such as research and development, manufacturing, and
sales can take advantage of their presence in a foreign country to learn the skills and techniques
those companies have to offer.

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 CHALLENGE 3: ADVANCING
INFORMATION TECHNOLOGY
▪ One kind of technology that is posing a major challenge for organizations today is information
technology. Information technology (IT) consists of the many different kinds of computer and
communications hardware and software, and the skills designers, programmers, managers, and
technicians bring to them. IT is used to acquire, define, input, arrange, organize, manipulate,
store, and transmit facts, data, and information to create knowledge and promote organizational
learning. Organizational learning occurs when members can manage information and knowledge
to achieve a better fit between the organization and its environment.
▪ Two important effects include (a) those behaviors that increase effectiveness by helping an
organization improve the quality of its products and lower its costs; (b) those behaviors that
increase effectiveness by promoting creativity and organizational learning and innovation.

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 CHALLENGE 3: ADVANCING
INFORMATION TECHNOLOGY

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 CHALLENGE 4:SHIFTING WORK
AND EMPLOYMENT RELATIONSHIPS
▪ In recent years, changes on organizational behavior have taken many forms with
respect to work and employee relationships. Forms of change include a
shortening employment relationship because of downsizing, the growth of a
number of contingent or temporary employees, outsourcing, and people no
longer spending their entire careers with one organization. One reason for this
is layoffs. Downsizing is the process by which organizations layoff managers
and workers to reduce costs. Employees that remain after a downsizing often
work under increased stress. The increasing tendency to downsize and layoff
workers affect the employment relationship between employees and
organizations. To keep their jobs, employees must keep their job skills and
knowledge sharp and be on the lookout for new job prospects.

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 CHALLENGE 4:SHIFTING WORK
AND EMPLOYMENT RELATIONSHIPS
▪ 1). Other trends include the increasing use of empowered self-managed teams and contingent or temporary
workers, and outsourcing.
▪ a. Empowerment is the process of giving employees throughout an organization the authority to make important decisions
and to be responsible for their outcomes.
▪ b. Self-managed teams are work groups who have been empowered, and given responsibility for leading themselves and
ensuring that they accomplish their goals.
2). As organizations have downsized, they have also increased the number of contingent workers they work with to keep costs
down.
a. Contingent workers are people who are employed for temporary periods by an organization and who receive no benefits
such as health insurance or pensions.
b. Contingent workers may work by the day, week, or month performing some functional task, or they may contract with
the organization for a fee to perform a specific service to the organization.
c. It is estimated that 20 percent of the U.S. work force today consists of part-time employees.
d. Part-time employees pose a special challenge to managers because they cannot be motivated by the prospect of
rewards such as job security, promotion, or a career within an organization.

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 CHALLENGE 4:SHIFTING WORK
AND EMPLOYMENT RELATIONSHIPS
▪ 3). Organizations are increasing the amount of outsourcing being done
▪ . a. Outsourcing is the process of employing people and groups outside the organization,
or other organizations, to perform specific jobs or types of work activities that used to
be performed by the organization itself.
▪ b. Jobs like bookkeeping, computer support, or web design are often performed by
freelancers—independent individuals who contract with an organization to perform
specific tasks.
▪ 4). Many of the changes that have occurred within organizations with respect to
creative employment practices have occurred to meet the challenges presented by
domestic and global competitors.

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MANAGING FOR EFFECTIVENESS
▪ A final set of issues we address in this chapter relates to
the consequences of management. More specifically, what
are the outcomes of different types of and approaches to
management? Three basic levels of outcomes determine
organizational effectiveness: individual-, group-, and
organization-level outcomes. Developing management skills
provides some additional perspectives on the importance of
these outcomes.
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▪ But groups or teams also have unique outcomes that individuals do
not share.
▪ For example, groups develop norms that govern the behavior of
individual group members. Groups also develop different levels of
cohesiveness.
▪ Thus, mangers need to assess both common and unique outcomes
when considering individual- and group-level outcomes.

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ORGANIZATION-LEVEL
OUTCOMES
▪ Finally, a set of outcome variables exists at the organization level. As before, some of these
outcomes parallel those at the individual and group levels, but others are unique. For example,
we can measure and compare organizational productivity. We can also develop organizationlevel
indicators of absenteeism and turnover. But financial performance is generally assessed only at
the organization level.
▪ In terms of financial performance, organizations are commonly assessed on stock price, return
on investment, growth rates, and the like. They are also evaluated in terms of their ability to
survive and the extent to which they satisfy important constituents such as investors,
government regulators, employees, and unions.
▪ Clearly, then, the manager must balance different outcomes across all three levels of analysis. In
many cases, these outcomes appear to contradict one another. For example, as illustrated
earlier in developing management skills, paying workers high salaries can enhance satisfaction
and reduce turnover, but it also may detract from bottom-line performance. Thus, the manager
must look at the full array of outcomes and attempt to balance them in an optimal fashion. The
manager’s ability to do this will be a major determinant of the organization’s success.

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