FUNDAMENTALS OF
ORGANIZATIONAL BEHAVIOR
GIOVANNI T. MACAHIG, DM-HRM
The Dynamics of people and organizations
A primary goal of management education is to
develop students into managers who can think
ahead, exercise good judgment, make ethical
decisions, and take into consideration the
implications of their proposed actions
Jane Schmidt-Wilk
Premises
Organizations are complex systems.
Need to understand how the system operates esp. in a sociotechnical system humanity
and technology.
Human behavior in organizations is sometimes unpredictable
Behaviors may come from deep-seated needs, lifetime experiences and personal value
systems
Human behavior in a organization can be partially understood
Applying the frameworks of behavioral science, management and other disciplines.
There are no perfect solutions to organizational problems
Increase the understanding and skills work relationships can substantially upgraded
We do not have the luxury of not working with or relate to other
people.
Learn human behavior.
Explore how to improve he interpersonal skills
Begin to mange ones relationships with others at work.
Understanding human behavior
Definition
OB
systematic study and careful application of knowledge about
how people as individuals and as groups act within
organizations.
Strive to identify ways in which people can act more efficiently
A large number of research studies and conceptual
developments constantly adds up to its knowledge base.
An applied science
Provides useful set of tools at many levels of analysis from
individual, interpersonal relations, intergroup,and whole
system
Goals of OB
Describe
how people behave under a variety of conditions.
Understand
Why people behave behave as they do.
Probe for underlying explanations
Predict
Predict future employee behavior (tardiness, productive &
unproductive etc.)
Provide preventive actions
Control
At least partially and develop some human activity at work.
Managers need to remember that organizational
behavior is a tool for human benefit
Key forces complex set of forces affects the nature of organizations
Key Forces
People
Make up the internal social system of an organization
Melting pot of diversity talents, background and perspectives to their jobs
Managers need to be tuned in to these diverse patterns and trends.
Changes in the labor force
Decline in work ethic and rise in emphasis on leisure, self expression, fulfillment and
personal growth
Decreased automatic acceptance of authority and increase in the desire for
participation, autonomy and control.
Skills become obsolete due to rapid technological advances retrain or be displaced
Security needs are prime concern and loyalty diminishes because of downsizing and
outsourcing
Absence of meaningful salary growth has placed renewed emphasis on money as a
motivator
Companies address diversity by becoming compassionate and caring, building
pride without de-valuing others, empowering some without exploiting,
demonstrating openness, confidence, authentic compassion and vulnerability.
Structure
Defines the formal relationship and use of people in organizations.
Effective coordination of work
Create complex problems of cooperation, negotiation and decision making
Technology
Provides he resources with which people work and affects the tasks they perform
Benefit of technology does more and better work however it restricts people in
various ways
OBs challenge is to maintain the delicate balance between technical and social systems.
Environment
Internal or external
Organizations are part of a larger system and factors influence them like:
Citizens expect organizations to be socially responsible
New products and competition for customers come from around the globe
(globalization)
The direct impact of unions diminishes
Dramatic pace of change in society.
The external environment influences the attitudes of people, affects working conditions,
and provides competitions for resources and power.
Positive Characteristics of OB
Interdisciplinary in nature integrates behavioral sciences,
social sciences and other disciplines
Emerging knowledge, theories, models and conceptual
frameworks.
Increasing acceptance of theory and research by practicing
managers.
Willingness of managers to explore new ideas
More receptive to new models
Support related research
Hungrily experiment with new ideas
Contributing Disciplines to the OB Field
Psychology
Sociology
Social Psychology
Anthropology
Political Science
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field (contd)
Contributing Disciplines to the OB Field (contd)
Contributing Disciplines to the OB Field (contd)
Contributing Disciplines to the OB Field (contd)
Fundamental Concepts of OB
Nature of people
Individual differences
Nature [Link]
Perception
The unique way in which each person sees, organizes and interprets things.
Selective perception cause misinterpretation
A whole person
We employ the whole person not just their brains or skills
Ergonomics is the science of fitting workplace conditions and job demands to the
capabilities of the working population
Motivated behavior
A path towards increased need fulfillment is a better approach
Desire for involvement
Hunger for a change to chare what they know and to learn from the experience.
Organizations need to provide opportunities for meaningful involvement employee
empowerment
Value of the person
Worth before the word
meal before the message
they want to be treated differently from other factors of production
Nature of organization
Social systems
or social structure in general refer to entities or groups in definite relation to each
other, to relatively enduring patterns of behavior and relationship within social
systems, or to social institutions and norms becoming embedded into social
systems in such a way that they shape the behavior of actors within those social
systems. Social systems can be said to be the patterns of behavior of a group of
people possessing similar characteristics due to their existence in same society.
Formal and informal social systems
The idea of a social system provides a framework for analyzing organizational
behavior issues. It helps make OB problems understandable and manageable
Mutual interest
Symbiotic relationship between organizations and people
Provides a superordinate goal one that can attained only through the integral
effort of individuals and their employers.
Ethics
Treatment of employees in an ethical fashion
Establish code of ethics, publicized statements of wthical values, provide ethics
trainings, reward employees for notable ethical behaviors, set up internal
procedure to handle misconduct.
Models of Organizational Behavior
Model of OB
Social Systems and Organizational Culture
A social system is a complex set of human
relationships interacting in many ways. Within an
organization, the social system includes all the people
in it and their relationships to each other and to the
outside world. The behavior of one member can have
an impact, either directly or indirectly, on the
behavior of others. Also, the social system does not
have boundaries...it exchanges goods, ideas, culture,
etc. with the environment around it.
Culture is the conventional behavior of an
organization that encompasses beliefs, customs,
knowledge, and practices. It influences human
behavior, even though it seldom enters into their
conscious thought. People depend on culture as it
gives them stability, security, understanding, and
the ability to respond to a given situation. This is
why people fear change. They fear the system will
become unstable, their security will be lost, they
will not understand the new process, and they will
not know how to respond to the new situations.
HOW AN ORGANIZATION's CULTURE CAN BE
KNOWN ?
Organization culture can be a set of key values , assumptions,
understandings and norms that is shared by members of an
organization.
Organization values are fundamental beliefs that an organization
considers to be important , that are relatively stable over time,
and they have an impact on employees behaviors and attitudes.
Organization Norms are shared standards that define what
behaviors are acceptable and desirable within organization.
Shared assumptions are about how things are done
in an organization.
Understandings are coping with internal / external problems
uniformly.
LEVELS OF ORGANIZATION CULTURE
LEVEL 1---VISIBLE, that can be seen at the surface
level
-dress codes
-office layout [ open office]
-symbols
-slogans
-ceremonies[ monthly / annual awards/long
service/birthdays etc.
etc
LEVEL 2- INVISIBLE , that can be cannot be seen but only felt.
-stories about people performance
-symbols [ flag, trademark, logos, etc]
-corporate mission statements
-recruitment/selection [ methods used]
-fairness in treatment
-social equality
-risk taking in business deals
-formality in approach
-discipline
-autonomy for departments
-responsiveness to communication
-empowerment of staff.
[Link]
Approaches to OB
Human Resources (Supportive) Employee growth
and development are encouraged and supported.
Contingency Different managerial behaviors are
required by different environments for effectiveness.
Results-oriented outcomes of organizational
behavior programs are assessed in terms of their
efficiency.
Systems all parts of an organization interact in a
complex relationship.
Limitations of OB
People who lack system understanding and become
superficially infatuated with OB may develop Behavioral
bias narrow viewpoint that emphasized satisfying
employee experiences while overlooking the broader system
of the organization in relation to all its publics.
The law of diminishing return
he tendency for a continuing application of effort or skill toward a
particular project or goal to decline in effectiveness after a certain level
of result has been achieved.
Overemphasis on as valid organizational behavior practice may produce
negative results
At some point increase of a desirable practice produce declining
returns, eventually negative returns
Unethical manipulation of people
Knowledge and techniques can be used to manipulate people
unethically
People who lack ethical values could use people in unethical
ways.
The philosophy of OB is supportive and oriented toward
human resources. Seeks to improve human environment and
help people grow toward their potential.
Ethical leadership principles such as: social responsibility,
open communication, cost-benefit analysis.
Continuing Challenges
Seeking Quick Fixes
Are we tempted when pressured to seed rapid solutions?
Varying Environments
Can the ideas that have been developed and tested endure with
equal success under new conditions?
Definition Confusion
Considered as relatively new discipline, can OB in clearly
define its field of student and application?
The organization is above all social. It is
people.
Peter Drucker