Organizational
Behaviour
Module No. 001
What is Organizational
Behavior?
By
Muhammad Shahid Iqbal
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Attitude, key to success
● Have you ever wondered why some individuals,
organizations, or countries are more successful than others?
● It is not a secret. I believe that the success of an individual,
organization or country, depends on the quality of their
people.
● "If you had a magic wand and there was one thing you would
want changed, The answer will be better attitudes
● William James of Harvard University said, "The greatest
discovery of my generation is that human beings can alter
their lives by altering their attitudes of mind."
Key to Success
● Your attitude contributes to success: A study attributed to
Harvard University found that when a person gets a job,
85% of the time it is because of their attitude, and only 15%
of the time because of how smart they are and how many
facts and figures they know. Surprisingly, almost 100% of
dollars go to teach facts & figures which account for only
15% of success in work!
● Attitude is the most important word in the English
language. It applies to every sphere of life, including one's
personal and professional life. Can an executive be a good
executive without a good attitude? Can a student be a
good student without a good attitude? Can a parent,
teacher, salesman, employer, employee be good in their
roles without a good attitude?
● “ A bad attitude is like a Flat tire, you can’t go anywhere
Goal and Objectives of course
Goal: To enable students that they will learn how to manage
their own performance and career by learning how to work
with and through other people-even when they do not want to.
● Instructional Objectives: On successful completion of this
course, the students should be able to:
● Explain the organizational behavioral & challenges work
environment.
● Illustrate the impact of perception, personality and emotions.
● Articulate the impact of values, attitudes and the influence of
diversity.
● Describe the major motivational theories that affect
workplace.
● Discuss the difference between work groups and work
teams and the models of team development.
What is Organizational Behavior?
Describe the Manager’s Functions,
Roles, and Skills
● Manger: Managers get things done through other people.
They make decisions, allocate resources, and direct the
activities of others to attain goals. The people who oversee
the activities of others and who are responsible for attaining
goals in these organizations are managers.
● 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. Examples
● Management Functions (Henri Foyal):
● Planning (defining goals, establishing and developing an
overall strategy & set of plans to integrate & coordinate
activities
● Organizing (designing organizational Structure)
● Leading (motivating, directing activities, selecting most
effective communication channels, or resolving conflicts)
Describe the Manager’s Functions,
Roles, and Skills
Mintzberg concluded that managers perform ten different,
highly interrelated roles or sets of behaviors attributable to
their jobs.
Role Description
Interpersonal relationships that a manager has to have with others.k
Figurehead Symbolic head; required to perform a number of routine duties
of a legal or social nature
Leader Responsible for the motivation and direction of employees
Liaison Maintains a network of outside contacts who provide favors
and information
Informational linvolve collecting, receiving, disseminating information
Monitor Receives a wide variety of information; serves as nerve center of
internal and external information of the organization
Disseminator Transmits information received from outsiders or from other
employees to members of the organization
Describe the Manager’s Functions,
Roles, and Skills
Role Description
Spokesperson Transmits information to outsiders on organization’s plans,
policies, actions, and results; serves as expert on
organization’s industry
Decisional Searches organization and its environment for opportunities
and initiates projects to bring about change
Entrepreneur Manager initiate and oversee new projects that will improve
their organization's performance
Resource allocator managers are responsible for allocating human, physical,
and monetary resources.
Negotiator Responsible for representing the organization at major
negotiations
Disturbance Handler managers take corrective action in response to
unforeseen problems.
Describe the Manager’s Functions,
Roles, and Skills
● Management Skills: Managers need certain skills to
perform the varied duties and activities associated with
being a manager
● Technical Skills – the ability to apply specialized knowledge
or expertise. All jobs require some specialized expertise. i.e.
skills of professionals such as civil engineers or oral
surgeons,
● Human Skills – The ability to understand, communicate
with, motivate, and support other people, both individually
and in groups.
● Conceptual Skills – the mental ability to analyze and
diagnose complex situations. Managers are required to
identify problems, develop alternative solutions to correct
those problems, evaluate those alternative solutions, and
select the best one.
Define Organizational Behavior
● Organizational Behavior: Compound of two words
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.
● Behavior: the way in which one acts or conducts oneself,
especially towards others
● Definition: 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.
It is a distinct area of Expertise with a common body of
knowledge.
It studies three determinants of behavior in organizations:
individuals, groups, and structure.
Focal Points of OB
● To sum up our definition, OB is the study of what people do
in an organization and how their behavior affects the
organization’s performance. And because
● OB is concerned specifically with
employment- related situations,
it emphasizes behavior
as related to concerns such as jobs, work,
absenteeism, employment turnover,
productivity, human performance,
and management.
● OB includes the core topics of motivation, leader behavior
and power, interpersonal communication, group structure
and processes, learning, attitude development and
perception, change processes, conflict, work design, and
work stress.
Complementing Intuition with
Systematic Study
● Each of us is a student of behavior. Whether you’ve explicitly
thought about it before, you’ve been “reading” people almost
all your life, watching their actions and trying to interpret
what you see or predict what people might do under
different conditions.
● Unfortunately, the casual or common sense approach to
reading others can often lead to erroneous predictions.
However, you can improve your predictive ability by
supplementing intuition with a more systematic approach.
● Systematic Study of Behavior: Underlying this systematic
approach is the belief that behavior is not random. Rather, we
can identify fundamental consistencies underlying the
behavior of all individuals and modify them to reflect
individual differences.
● systematic study is looking at relationships, attempting to
attribute causes and effects, basing our conclusions on
Complementing Intuition with
Systematic Study
● that is, on data gathered under controlled conditions and
measured and interpreted in a reasonably rigorous manner.
● Evidence-Based Management: Evidence-based management
(EBM) complements systematic study by basing managerial
decisions on the best available scientific evidence.
● For example, we want doctors to make decisions about
patient care based on the latest available evidence, and EBM
argues that managers should do the same, becoming more
scientific in how they think about management problems.
● Intuition: Systematic study and EBM add to intuition, or those
“gut feelings” about “why I do what I do” and “what makes
others and ourselves “tick.”
● If we make all decisions with intuition or gut instinct,
we’re likely working with incomplete information.
Contributing Disciplines
to the OB Field
Micro:
The
Individual
Macro:
Groups &
Organizations
1-16
Organizational
behavior is an
applied
behavioral
science that is
built upon
contributions
from a
number of
behavioral
disciplines:
Contributing Disciplines
to the OB Field
● Psychology seeks to measure, explain, and sometimes change the
behavior of humans. learning theorists, personality theorists,
counseling psychologists, industrial and organizational
psychologists contributed and continue to add to the knowledge of
OB
● Social psychologists also contribute to measuring, understanding,
and changing attitudes; identifying communication patterns; and
building trust, study of group behavior, power, and conflict.
● Sociology studies people in relation to their social environment or
culture. Sociologists contributed to OB through their study of group
behavior particularly formal and complex organizations.
● Anthropology is the study of societies to learn about human
beings and their activities. Anthropologists’ work on cultures and
environments has helped us understand differences in
fundamental values, attitudes, and behavior between people in
different countries and within different organizations.
Challenges & Opportunities for OB
● Today’s challenges bring opportunities for managers to use
OB concepts. There are some of the most critical issues
confronting managers for which OB offers solutions.
● Responding to Economic Pressures : Managing
employees well when times are tough is just as hard as
when times are good. In tough economic times,
effective management is an asset. In good times,
understanding how to reward, satisfy, and retain
employees is at a premium.
● When times are bad, though, managers are on the front
lines with employees who must be fired, who are asked
to make do with less, and who worry about their
futures..
● The difference between good and bad management can
be the difference between profit and loss or, ultimately,
Challenges & Opportunities for OB
● Responding to Globalization: Organizations are no longer
constrained by national borders. Burger King is owned by a
British firm, and McDonald’s sells hamburgers in Moscow all
major automobile makers now manufacture cars outside
their borders; Honda builds cars in Ohio, Ford in Brazil,
Volkswagen in Mexico, and both Mercedes and BMW in
South Africa
● The world has become a global village. In the process, the
manager’s job has changed.
● Increased Foreign Assignments: If you’re a manager, you
are increasingly likely to find yourself in a foreign
assignment, transferred to your employer’s operating
division or subsidiary in another country. Once there,
you’ll have to manage a workforce very different in
needs, aspirations, and attitudes from those you are
Challenges & Opportunities for OB
● Working with People from Different Cultures: Even in your
own country, you’ll find yourself working with bosses, peers,
and other employees born and raised in different cultures.
What motivates you may not motivate them. Or your
communication style may be straightforward and open,
which others may find uncomfortable and threatening. To
work effectively with people from different cultures, you
need to understand how their culture, geography, and
religion have shaped them and how to adapt your
management style to their differences.
● Overseeing Movement of Jobs to Countries with Low-Cost
Labor: In a global economy, jobs tend to flow where lower
costs give businesses a comparative advantage. Managers
face the difficult task of balancing the interests of their
organization with their responsibilities to the communities in
Challenges & Opportunities for OB
● Managing Workforce Diversity: Organizations are becoming
more heterogeneous in terms of gender, age, race, ethnicity,
sexual orientation, and inclusion of other diverse groups.
● Improving Customer Service: Today, the majority of employees in
developed countries work in service jobs ., The common
characteristic of these jobs is substantial interaction with an
organization’s customers. And because an organization can’t exist
without customers. Many organizations has failed because its
employees failed to please customers.
● Management needs to create a customer-responsive culture. OB
can provide considerable guidance in helping managers create such
cultures—in which employees are friendly and courteous,
accessible, knowledgeable, prompt in responding to customer
needs, and willing to do what’s necessary to please the customer
Challenges & Opportunities for OB
● Improving People Skills: People skills are essential to
managerial effectiveness.
● OB provides the concepts and theories that allow managers to
predict employee behavior in given situations.
● Manager learn ways to design motivating jobs, techniques for
improving listening skills, and how to create more effective
teams.
● Stimulating Innovation and Change: Successful organizations
must foster innovation and master the art of change. Victory
will go to the organizations that maintain their flexibility,
continually improve quality, and beat their competition to the
marketplace with a constant stream of innovative products
and services.
● An organization’s employees can be the impetus for
innovation and change, The challenge for managers is to
stimulate their employees’ creativity and tolerance for change.
Challenges & Opportunities for OB
● Coping with “Temporariness: Globalization, expanded
capacity, and advances in technology have required
organizations to be fast and flexible if they are to survive. The
result is that most managers and employees today work in a
climate best characterized as “temporary.” Workers must
continually update their knowledge and skills to perform new
job requirements.
● Today’s managers and employees must learn to cope with
temporariness, flexibility, spontaneity, and unpredictability.
The study of OB can help you better understand a work world
of continual change, overcome resistance to change, and
create an organizational culture that thrives on change.
Challenges & Opportunities for OB
● Working in Networked Organizations: Networked
organizations allow people to communicate and work
together even though they may be thousands of miles apart.
The manager’s job in a networked organization requires
different techniques from those used when workers are
physically present in a single location.
● Helping Employees Balance Work–Life Conflicts: Employees
increasingly recognize that work infringes on their personal
lives, and they’re not happy about it. Organizations that don’t
help their people achieve work–life balance will find it
increasingly difficult to attract and retain the most capable
and motivated employees. OB offers a number of
suggestions to guide managers in designing workplaces
and jobs that can help employees deal with work–life
conflicts.
Challenges & Opportunities for OB
● Creating a Positive Work Environment: organizations are
trying to realize a competitive advantage by fostering a
positive work environment which means practicing
engagement, hope, optimism, and resilience in the face of
strain
● Improving Ethical Behavior: Ethical dilemmas and ethical
choices are situations in which an individual is required to
define right and wrong conduct. Organization solves
problem of unethical behavior in a number of ways, by
writing and distributing codes of ethics, offering seminars,
workshops, and training programs to try to improve ethical
behaviors. They’re providing in-house advisors who can be
contacted for assistance in dealing with ethical issues, and
they’re creating protection mechanisms for employees who
reveal internal unethical practices.
Developing an OB Model
● OB Model proposes three types of variables (inputs, processes,
and outcomes) at three levels of analysis (individual, group, and
organizational). The model proceeds from left to right, with inputs
leading to processes and processes leading to outcomes.
Developing an OB Model
● Inputs
● Variables like personality, group
structure, and organizational culture
that lead to processes.
● Group structure, roles, and team
responsibilities are typically assigned
immediately before or after a group is
formed.
● Organizational structure and culture are
usually the result of years of
development and change as the
organization adapts to its environment
and builds up customs and norms.
Developing an OB Model
Processes Outcomes
● Processes are defined as ● Outcomes are the key variables
actions that individuals, groups, that you want to explain or predict,
and organizations engage in as a and that are affected by some
result of inputs, and that lead to other variables. What are the
certain outcomes. primary outcomes?
● At individual level, emotions and ● individual-level outcomes are
moods, motivation, perception, attitudes and satisfaction, task
and decision making. performance, citizenship behavior,
and withdrawal behavior.
● At group level, communication,
● group level, cohesion and
leadership, power and politics, and
functioning
conflict and negotiation.
● organizational level we look at
● At organizational level, HRM overall profitability and survival.
and change practices.
Learning Outcomes
● What is the importance of interpersonal skills?
● What do managers do in terms of functions, roles, and
skills?
● What is organizational behavior (OB)?
● Why is it important to complement intuition with
systematic study?
● What are the challenges and opportunities for managers in
using OB concepts?