Organizational Behavior:

Design and Development

Instructor:
Lemi Tesfa Wakshum(Ph.D.)
Assistant Professor

October,2021
Addis Ababa, Ethiopia

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 Course Description:

 This course gives the students a clear picture of individual,

group and organizational behaviors. The course is divided
into three basic sections.
 The first section discusses foundations of individual
behavior - biographical characteristics, ability, and learning.
It also discusses perception, attitudes and values and
motivation.
 The second section deals with foundations of group
behavior with emphasis on informal and formal teams. Here
students will also learn about Conflict and dynamics of
Organizational Change.
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 Course Description:
 Finally, students will acquire knowledge about
organizational development covering topics such as
Goals of organizational development: Principles
underlying organizational development, Ethical
aspects of organizational development, and the
process of organizational development: Action
research and organizational development,
Organizational development Interventions:
Organization-wide interventions, smaller group and
inter-group interventions, Individual interventions
and various
10/21/2021 OD Techniques.
Lemi Tesfa (Ph.D.) 3
 Course Objectives:

 The course is designed to enhance the student’s

working knowledge, skills, and work values in
leading people effectively in organizations.
 Learning focus is progressively sequenced:
understanding and influencing positively the
individuals in the organization; the formation and
dynamics of various work teams; organization
development concepts and uses.

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 Chapter I:
What Is Organizational Behavior?

 What is organizational behavior?

 What challenges do managers and
employees face in the workplace of the
21st century?
 How will knowledge of organizational
behavior make a difference for you?
 What is an Organization?
 A consciously coordinated social unit,
composed of a group of people, which
functions on a relatively continuous basis
to achieve a common goal or set of goals.
 What is Behavior?
 Organizational Behavior

 . . . 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 organization’s
effectiveness.
 Why Do We Study OB?
 To learn about yourself and how to deal with
others
 You are part of an organization now, and will
continue to be a part of various organizations
 Organizations are increasingly expecting
individuals to be able to work in teams, at least
some of the time
 Some of you may want to be managers or
entrepreneurs
 Challenges Facing the Workplace
Organizational Level

• Productivity
• Developing Effective Employees(Absenteeism, turnover,OCB)
• Global Competition
• Managing in the Global Village

Group Level
• Working With Others
• Workforce Diversity
Workplace

Individual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically
 Productivity
 Productivity
 A performance measure including
effectiveness and efficiency
 Effectiveness
 Achievement of goals
 Efficiency
 The ratio of effective work output to the input
required to produce the work
 Effective Employees
 Organizational Citizenship Behavior
 Discretionary behavior that is not
part of an employee’s formal job
requirements but is helpful to the
organization.
 Discussion
 What is your OCB?

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 Contributing Disciplines to
the OB Field
 Psychology
 Sociology
 Social Psychology
 Anthropology
 Political Science
 Toward an OB Discipline
Behavioural Contribution Unit of Output
science analysis
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Psychology Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Individual

Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Sociology
Formal organization theory Study of
Organizational technology Group Organizational
Organizational change Behaviour
Organizational culture

Behavioural change
Attitude change
Social psychology Communication
Group processes
Group decision making
Organization
Comparative values system
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational culture
Organizational environment

Conflict
Political science Intraorganizational politics
Power
 Paradigms (Models) of OB
 There are two basic (fundamental) models
or paradigms in OB

 Model I: Provides a conceptual frame of

analysis for OB. It has three major levels of
analysis: Individual level, group level, and
organizational level
 Model II: Is a more elaborate model that
illustrate the effect of individual, group and
organizational levels on human output
Exhibit 1-3
Basic OB Model (Paradigm), Stage I

Organization systems level

Group level

Individual level
Exhibit 1-4
Basic OB Model, Stage II
Human resource
policies and
practices

Organization Work design

Organizational
structure and
culture
and design technology

Organization
Systems Level

Change and Group

Leadership
stress decision making

Group Work
Communication Productivity
structure teams

Absence

Turnover
Other Power and
Conflict Human
groups politics
Group Level output
Satisfaction

Organizational
commitment

Biographical
characteristics
Workplace
interaction

Personality Perception

Motivation Individual
Values and
attitudes decision making

Human Individual
Ability Differences
input
Individual Level
Exhibit 1-5
Competing Values Framework
Flexibility

External Focus
Internal Focus

Control
 Competing Values Framework
 Internal-External Dimension
 Inwardly toward employee needs and concerns and/or
production processes and internal systems
or
 Outwardly, toward such factors as the marketplace,
government regulations, and the changing social,
environmental, and technological conditions of the
future
 Flexibility-Control Dimension
 Flexible and dynamic, allowing more teamwork and
participation; seeking new opportunities for products
and services
or
 Controlling or stable, maintaining the status quo and
exhibiting less change
 Management and organizational behavior in the
21st century
 To understand how the study of OB has evolved, it is important
to look at the historical development of modern management
theories.
 It is necessary to view the interrelationships between the
development of theory, behaviour in organisations and
management practice.
 An understanding of the development of management
thinking helps in understanding principles underlying the
process of management
 Knowledge of the history helps in understanding the nature of
management and organisation behaviour.
 Many earlier ideas are still important and are often
incorporated into more current management thinking.

1
 Management Theories: Antecedents of OB
 The development of modern management in 20th
century essentially based on the plethora of theories of
management.
 It shows us how sole concern for organization unfolded
to incorporate “concern for people”. These include:
 The Classical Approach
 Administrative Management

 Scientific management
 Management Theories: Antecedents of OB

 Human-Relations Approach
 Hawthorne Experiment
 Neo-Human Relations Approach
 Herzberg Theory Job Satisfaction
 Maslow/s Theory of Hierarchy of Needs – Basic

needs to Self-Actualization
 McGregor’s Theory X and Theory Y

 Systems Approach
 Contingency Approach

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 Classical Approach
 Emphasis on purpose, formal structure, hierarchy of
management, technical requirements and common
principles of organisation.
 This perspective was concerned with structuring
organisations effectively.
 Two major sub-groupings of this approach are:
 Bureaucracy

 Scientific Management (sometimes categorised as

an approach in its own right)

 Classical Approach
Major Contributors:  Weber proposed a
bureaucratic form of
Henri Fayol structure that he
believed would work
Linda Urwick for all organisations.
Max Weber – most
prominent of the three.  Embraced logic,
rationality, efficiency.
 Classical Approach
Weber’s Ideal Criticisms of Bureaucracy
Bureaucracy
 Lack of attention to the
 Job Specialisation informal organisation.
 Authority Hierarchy  Restriction of psychological
 Formal Selection growth
 Formal Rules and  Bureaucratic dysfunction
Regulations
 Impersonality
 Career Orientation
 Classical Approach
Scientific Management
 Emphasis on obtaining increased productivity from
individual workers through the technical structuring
of the work organisation and the provision of
monetary incentives as the motivator for higher
levels of output.
Major Contributor - FW Taylor (1856 - 1917) – held
the view that there was a best working method by
which people should undertake their jobs.
 Classical Approach...Cont’d

Taylor’s Principles
 The development of a true science for each

person’s work
 The scientific selection, training and development

of the workers
 Co-operation with the workers to ensure work is
carried out in the prescribed way
 The division of work and responsibility between

management and the workers.

 Classical Approach...Cont’d

Reactions Against Scientific Management

 Opposition because its specific goal was to get

more output from the workers

 Argument that his incentive system would
dehumanise the workplace
 Inadequate views of employee motivation

 Allegations that he falsified some of his research

findings and paid someone to do his writing for

him.
 Human Relations Approach
(Elton Mayo: 1880-1949)

 During the 1920s, attention began to focus on

social factors at work, groups, leadership, the
informal organisation and behaviour of people.
 ‘Behavioural’ and ‘informal’ are alternative
headings sometimes given to this approach.
 Turning point came with the famous Hawthorne
experiments at the Western Electric Company in
America (1924-32)
 One of the researchers (leader) was Elton
Mayo(1880-1949)
 Human Relations Approach....Cont’d

Four Main Phases to the Hawthorne Experiments

 The Illumination Experiments - level of production was
influenced by factors other than changes in physical
conditions of work.
 The Relay Assembly Test Room - attention and interest
by management reason for higher productivity.
 The Interviewing Programme -20,000 interviews.
Gave impetus to present-day personnel management and
use of counselling interviews. Highlighted the need for
management to listen to workers.
 The Bank Wiring Observation Room - Piecework
Incentive Scheme. Group pressures stronger than financial
incentives offered by management.
 Neo-Human Relations Approach

 Writers in the 1950s and 1960s who adopted a

more psychological orientation.
 Major focus was the personal adjustment of the
individual within the work organisation and the
effects of group relationships and leadership styles.
 Main contributors: Maslow, Herzberg AND
McGregor.
 Systems Approach
 Integration of the classical and human relations
approaches.
 Importance of the socio-technical system.
 Attention is focused on the total work organisation
and the interrelationships of structure and
behaviour, and the range of variables within the
organisation.
 The Systems Approach encourages managers to
view the organisation both as a whole and as part
of a larger environment.
 Contingency Approach
 Best viewed as an extension of the systems
approach.
 Highlights possible means of differentiating
between alternative forms of organisation
structure and systems of management.
 There is no one best design of organisation.
 Most appropriate structure and system of
management is dependent upon the contingencies
of the situation for the particular organisation.
 Summary and Implications
 OB is a field of study that investigates the impact
that individuals, groups, and structure have on
behavior within an organization.
 OB focuses on improving productivity, reducing
absenteeism and turnover, and increasing
employee job satisfaction and organizational
commitment.
 OB uses systematic study to improve predictions
of behavior.
Thank You!

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