Arbaminch University

Sawla Campus
College of Cmmerce and Business Admnistration
Department of Logistics and Supply Chain mgt
Course: ORGANIZATION BEHAVIOR

Teaching Material/PPT set by:

Mr. Habib S.
MBA (in International Business)
 CHAPTER ONE
1. AN OVER VIEW OF ORGANIZATION
BEHAVIOR
 1.1 What is Organizational Behavior?
• Organization: is a consciously coordinated social
unit, made up of a group of people, who work
together on common goals on a relatively continuous
basis.

• Behavior: Behavior refers to what people do in the

organization, how they perform, and what their
attitudes are.
• Organizational behavior (often abbreviated as OB)
is a field of study that investigates how:
 individuals,
 groups, and
 structure
• affect and is affected by behavior within
organizations.
• 1.2. The three basic units of analysis in OB
• three levels of analysis in OB. These are:
Individuals,
Groups,
Structure.
• The individual level includes the characteristics and behaviors of
employees as well as the thought processes attributed to them, such
as:
 motivation,
 perception,
 personalities,
 attitudes, and
 values.

• The group level analysis looks at the way people interact. It

includes:
 team dynamics,
 decisions,
 power,
 organizational politics,
 conflicts, and
 leaderships.

• At the organization level, we focus on how people structure their

working relations and how organizations work together with their
environment.
• 1.4. A review of a manager’s job and its
relation to the study of OB
• Managers: are individuals who achieve goals
through other people.
• For this study purpose the manager’s job will
be identified by:
 functions,
roles
skills.
 Management Functions
Organizing
Organizing
Planning
Planning

Management
Management
Functions
Functions Staffing
Staffing

Controlling
Controlling
Leading
Leading
• Managerial Roles
• Role is an organized set of behaviors that is
associated with a particular office or position.
• Managerial roles represent specific tasks that
managers undertake to ultimately accomplish
the five managerial functions.
• Mintzberg’s Managerial Roles
Interpersonal
Informational
Decisional
Role Description
Interpersonal
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
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
Spokesperson Transmits information to outsiders on organization’s plans, policies, actions, and
results; serves as expert on organization’s industry
Decisional
Entrepreneur Searches organization and its environment for opportunities and initiates projects to
bring about change
Disturbance handler Responsible for corrective action when organization faces important, unexpected
disturbances
Resource allocator Makes or approves significant organizational decisions
Negotiator Responsible for representing the organization at major negotiations
Management Skills
• The study of organizational behavior can
provide managers with the following practical
advantages:

• Organizational behavior provides managers :

with a way of systematically thinking about the behavior of people at

work.

techniques for dealing with the problems and opportunities that

commonly occur in a work setting.
• 1.5 Characteristics of OB
• major characteristics of Organization behavior:
1. Interdisciplinary. Organizational behavior has interdisciplinary orientation that
integrates behavioral sciences in understanding behavior and performance.
2. Behavioral Science Foundation. The behavioral sciences—psychology,
sociology and anthropology have provided the basic philosophy,
characteristics of science, and principles that are so freely borrowed by the
field of organizational behavior.
3. Scientific Method Foundation. OB had inherited the tradition of scientific
method in its investigations from its parent disciplines.
4. Three Levels of Analysis. The OB is unique in its approach to behavior because
it encompasses three levels of analysis, individual, group, and formal
organization.
5. Contingency Orientation. The term contingency orientation reflects the need
to consider the situation and individuals involved before drawing conclusions
about behavior.
6. Concern for Application. The OB researcher must always be concerned with
understanding real events in actual organizations and with communicating
results in a meaningful fashion to practicing managers.
• 1.6 Development of organizational behavior
• The major contributors to the theory of
organizational behavior are :
classical schools of management theory,
behavioral theory,
contingency theory.
1. Classical Schools of Management
• This school of thought is made up of two
branches:
classical scientific
classical administrative,
• A. Classical scientific school
• This branch arose because of the need to increase:
 productivity and
 efficiency.
major contributors including :
Frederick Taylor,
Henry Gantt, and
Frank and Lillian Gilbreth.
• B. Classical administrative school
• The emphasis is on the development of
managerial principles rather than work
methods.
• Contributors
Max Weber and = theory of Bureaucracy
Henri Fayol= management principles

• These theorists studied the flow of

information within an organization and
emphasized the importance of understanding
how an organization operated.
• 2. BEHAVIORAL MANAGEMENT THEORY:
• emphasizes improving management through the
psychological makeup of people.
• The behavioral approach is sometimes referred to as the
human resources approach because of the focus on making
optimum use of workers in a positive way, such as making
jobs motivational
• The proponents
George Elton Mayo,
Abraham Maslow,
Douglas McGregor.
• Hawthorne studies conducted by G.E. Mayo can be thought
of as the first, founding step in organizational behavior, and it
gave rise to a new school of management thought, the,
Human Relations Movement.
• 3. CONTINGENCY MANAGEMENT
THEORY
• there is no one best way of managing or
managerial technique universally applicable
in all situations; rather, it depends upon a
given set of circumstances.

• The idea is that what works in one situation

may not work in another situation.
• 1.8 Organizational Behavior in the 21st
century
• The Realities of the New Workplace
• Here are some of the realities of the new
workplace.
Managing Workforce Diversity:
Responding to Globalization
Changing workforce (workforce is changing):
Consumer expectations are changing:
Changing organizations (organizations are changing
Managers must change
• 1.9 Organizations as a system
• A system is a „series of functions or activities within an
organization that work together for the aim of the
organization.
• Subsystems are those parts making up the whole
system.
• There are two types of system; those are open and close
system.
Open system
Closed system
• Synergy: refers to instances when the sum of
individual contributions exceeds the simple summation
of them.
• 1.10 Ethics and Organizational Behavior
• Ethics is the study of moral values or principles that
guide our behavior and inform us whether actions are
right or wrong.
• Ethical behavior is that accepted as morally “good” and
“right,” as opposed to “bad” or “wrong,” in a particular
setting.
• Ways of thinking about ethical behavior
• At least four ways of thinking about ethical behavior in
and by organizations can be identified.
Utilitarian view:
Individualism view
Moral-rights view
Justice view:
• Utilitarian view: considers ethical behavior to be,
that which delivers the greatest good to the greatest
number of people.
• Individualism view: considers ethical behavior to be,
that which is best for an individual’s long-term self-
interests.
• Moral-rights view: considers ethical behavior to be,
that which respects fundamental rights shared by all
human beings. This view is tied very closely to the
principle of basic human rights, such as those of life,
liberty, and fair treatment by law.
• Justice view: considers ethical behavior to be, that which is
fair and impartial in its treatment of people. It is based on the
concept of equitable treatment for all concerned. In OB, two
issues address this view of ethical behavior.
Procedural Justice is the degree to which the rules and
procedures specified by policies are properly followed
in all cases under which they are applied.
Distributive justice is the degree to which all people
are treated the same under a policy, regardless of race,
ethnicity, gender, age, or any other demographic
characteristic.
• 1.10 ORGANIZATIONAL SOCIAL
RESPONSIBILITY
• is the obligation of organizations to behave in ethical
and moral ways as institutions of the broader society.
• This concept suggests that members must ensure that
their ethical frameworks extend to the organization as
a whole.
THANK YOU