Organizational Behavior – Class Notes (Based on Luthans & Jackson Book)
Course code: OB903
Class timings: Monday 9:00
Introduction to Organizational Behavior (OB)
Organizational Behavior is study of how people behave in organization. It focus on individuals,
groups and structure. Main idea is to understand behavior so managers can improve effectiveness
of organization.
OB is important because organizations are made of people, and people behave differently in
different situations. So managers must understand human behavior to manage properly.
Levels of OB:
Individual level (personality, perception, learning)
Group level (teamwork, communication)
Organizational level (culture, structure)
Importance of OB
OB helps in:
improving employee performance
better communication
reducing conflicts
increasing job satisfaction
understanding motivation
It also help managers to predict behavior but not always 100% correct because humans are
complex.
Individual Behavior
Each person is different. Behavior depends on many factors like personality, values, attitudes and
perception.
Personality:
Personality means unique characteristics of individual. Some people are introvert, some
extrovert. Personality affect how person work and interact.
Big Five personality traits:
Openness
Conscientiousness
Extraversion
Agreeableness
Neuroticism
Perception:
Perception is how people see and understand things. Two people can see same situation but
understand differently. This can cause misunderstanding sometimes.
Attitudes:
Attitudes are feelings about something. For example job satisfaction means how much person
like their job.
Job satisfaction is important because satisfied employees perform better and less absent.
Learning
Learning means change in behavior due to experience.
Types of learning:
Classical conditioning
Operant conditioning
Social learning
Reinforcement is important. Positive reinforcement increase behavior while punishment decrease
behavior.
Motivation
Motivation is very important topic in OB. It means willingness to work hard.
Theories of motivation:
Maslow hierarchy:
Basic needs
Safety
Social
Esteem
Self-actualization
Herzberg theory:
Hygiene factors (salary, policy)
Motivators (achievement, recognition)
Expectancy theory:
Employees work hard if they believe effort will lead to performance and rewards.
Equity theory:
Employees compare their input and output with others. If they feel unfair, they become
demotivated.
Goal setting theory:
Clear and challenging goals increase performance.
Group Behavior
People in organization work in groups. Group behavior is important part of OB.
Types of groups:
Formal groups (created by organization)
Informal groups (based on friendship)
Stages of group development:
Forming
Storming
Norming
Performing
Adjourning
Teamwork is important. Good team can achieve more than individuals.
Communication
Communication is process of sharing information.
Types:
Verbal
Non-verbal
Written
Barriers in communication:
Language problems
Noise
Misunderstanding
Emotional issues
Good communication improve performance and reduce conflicts.
Leadership
Leadership is ability to influence others.
Types of leadership styles:
Autocratic (leader take decisions alone)
Democratic (employees participate)
Laissez-faire (freedom to employees)
Good leader motivate and guide employees.
Theories of leadership:
Trait theory
Behavioral theory
Contingency theory
Leadership is not only about power but also responsibility.
Power and Politics
Power is ability to influence others. It can come from position, knowledge or personality.
Types of power:
Legitimate power
Reward power
Coercive power
Expert power
Referent power
Politics exist in organizations. It can be positive or negative. Too much politics create problems.
Conflict and Negotiation
Conflict happen when people disagree.
Types:
Task conflict
Relationship conflict
Conflict is not always bad. Sometimes it can improve ideas.
Conflict management styles:
Avoiding
Competing
Compromising
Accommodating
Collaborating
Negotiation is process of solving conflict through discussion.
Organizational Culture
Culture is shared values and beliefs in organization.
Strong culture guide employee behavior.
Types of culture:
Innovative
Supportive
Bureaucratic
Culture affect performance and satisfaction.
Organizational Structure
Structure define how tasks are divided and coordinated.
Types:
Functional structure
Divisional structure
Matrix structure
Centralization vs decentralization also important.
Change Management
Organizations face change all time.
Types of change:
Technological
Structural
People change
Resistance to change is common because people fear unknown.
Managers should manage change properly by communication and support.
Stress Management
Stress is common in workplace.
Causes:
Work overload
Role conflict
Poor environment
Effects:
Low performance
Health issues
Ways to manage stress:
Time management
Relaxation
Support from management
Decision Making
Decision making is important managerial activity.
Steps:
1. Identify problem
2. Analyze options
3. Choose best solution
4. Implement decision
Types of decisions:
Programmed (routine)
Non-programmed (new problems)
Sometimes managers make wrong decisions because of bias.
Emotions and Mood
Emotions affect behavior.
Positive emotions improve performance while negative emotions reduce it.
Emotional intelligence (EI) is ability to understand and manage emotions.
High EI is important for leaders.
Job Design
Job design means organizing tasks.
Methods:
Job rotation
Job enlargement
Job enrichment
Good job design increase satisfaction.
Organizational Justice
Justice means fairness in organization.
Types:
Distributive justice (fair outcomes)
Procedural justice (fair process)
Interactional justice (fair treatment)
Employees feel motivated when they are treated fairly.
Diversity in Workplace
Diversity means differences among employees.
It include gender, age, culture etc.
Benefits:
Creativity
Better decisions
Challenges:
Conflicts
Misunderstanding
Managers should handle diversity carefully.
Organizational Citizenship Behavior (OCB)
OCB means extra behavior not part of job but helpful for organization.
Example:
Helping coworkers
Being positive
OCB improve organization performance.
Conclusion
Organizational Behavior is very important subject. It help to understand how people behave in
organization. It includes topics like personality, motivation, leadership, groups and culture.
Managers who understand OB can manage employees better and improve performance.
Organizations become more effective when employees are satisfied and motivated.
But OB is not exact science because human behavior is unpredictable sometimes. Still it give
useful knowledge for management.