ACEL 2
HUMAN BEHAVIOR IN ORGANIZATIONS
ORGANIZATIONAL
SYSTEM AND HUMAN
BEHAVIOR
CHAPTER 1
ORGANIZATIONAL
BEHAVIOR (OB)
• The systematic study of how individuals and groups
behave and act within an organizational
environment.
• It delves into understanding the dynamics of human
interaction and performance in a work context.
PRIMARY FOCUS OF
ORGANIZATIONAL BEHAVIOR
To examine how these
To analyze and
behaviors influence
comprehend individual
and are influenced by
and group behaviors.
the organization.
AIM OF ORGANIZATIONAL
BEHAVIOR (OB)
I 2 3
To accurately To predict Ultimately, to apply
explain why future this understanding to
people behave behaviors improve
the way they and their organizational
do in potential effectiveness and
organizations. impact. foster positive
experiences for
employees
ORGANIZATION
• A structured collection of individuals who collaborate
within a coordinated system.
• The collective effort is directed towards the attainment of
a common, shared goal.
FEATURES:
• Coordinated Activities • Network of Individuals
• Division of Labor • System
• Goal Orientation
• Continuity Over Time, Regardless of Membership Change
FEATURES OF ORGANIZATIONS
• Network of Individuals: Organizations are built
upon relationships and interactions among people
striving to accomplish tasks and solve problems.
• System: They operate with coherent, well-defined
structures, processes, and established protocols.
• Coordinated Activities: Various tasks and functions
are integrated efficiently to optimize resource
utilization and facilitate effective performance by
individuals and groups.
FEATURES OF ORGANIZATIONS
• Division of Labor: Work activities are logically
grouped into specialized departments, often led by
experts, to enhance efficiency and focus.
• Goal Orientation: Every organization exists to
achieve a specific common purpose or set of goals
(e.g., profit generation, service provision, innovation).
FEATURES OF ORGANIZATIONS
• Continuity Over Time, Regardless of
Membership Change: Thanks to established
systems and robust foundational structures,
organizations can persist and continue pursuing their
objectives even as individual members change.
Organizational
Level
Group
Level
Individual
Level
ORGANIZATIONAL
BEHAVIOR MODEL
INDIVIDUAL LEVEL
• Focus: Understanding individual needs, values,
attitudes, perceptions, personality, motivation, and
learning.
• Importance: When individual expectations and
values align with organizational expectations, it
reduces frustration and conflict, fostering a more
satisfactory work environment and aiding in goal
attainment.
GROUP LEVEL
• Focus: Examining how two or more individuals interact,
influence each other, and collaborate towards shared
objectives. This includes formal work groups and
informal social groups, often evolving into cohesive
teams.
• Importance: Recognizing group dynamics helps
management understand collective pressures that
impact individual and collective performance. Effective
group management facilitates smoother business
operations (e.g., planning, organizing, coordinating).
ORGANIZATIONAL
LEVEL
• Focus: Analyzing the impact of the organization's
formal structure, management systems, culture, and
leadership styles on employee behavior and overall
communication flow.
• Importance: A clear understanding of the
organizational structure and its implications helps
identify potential bottlenecks or areas where systemic
issues affect employee performance and well-being.
FACTORS AND OUTCOMES OF
A STRATEGIC APPROACH TO
ORGANIZATIONAL BEHAVIOR
(HITT, MILLER AND COLELLA, 2012)
FACTORS INFLUENCING ORGANIZATIONAL
BEHAVIOR AND OUTCOMES
Individual Factors:
• Personal values, capabilities, motivation levels, job satisfaction,
learning ability, locus of control, personality traits, skills, and
attributes.
Interpersonal Factors:
• The quality of leadership, effectiveness of communication, clarity of
role relationships, and decision-making processes within groups and
teams.
Organizational Factors:
• Formal structures, established policies, and the prevailing
OUTCOMES OF A STRATEGIC ORGANIZATION
BUSINESS APPROACH:
Productivity:
• The tangible output generated by individuals and groups within the
organization.
Satisfaction:
• The positive feelings and contentment individuals and groups
experience regarding their work and the overall work environment.
Organizational Success:
• Achieved through competitive advantage and strong financial
performance.
PSYCHOLOGICAL
CONTRACT
• An unwritten and implied agreement between
individuals and the organization's management.
• It represents the unstated "give-and-take"
relationship, acknowledging mutual needs and
expectations of both parties. Its fairness is crucial for
employee relations and retention.
IMPORTANCE OF STUDYING
ORGANIZATIONAL BEHAVIOR
• Advantage through Human Capital: provides insights
that enable organizations to leverage their human
resources effectively, creating a unique and difficult-to-
replicate advantage in the marketplace.
HUMAN
CAPITAL:
• The collective sum of an individual's KSAOs:
KSAOs:
• Knowledge: What an employee knows.
• Skills: What an employee can do.
• Attributes: Personal characteristics (e.g.,
conscientiousness, teamwork).
• Other general characteristics (e.g., experience,
creativity).
Unlike physical assets, human resources do not depreciate; they develop
and grow through continuous experience and training, becoming more
valuable over time.
IMPORTANCE OF STUDYING
ORGANIZATIONAL BEHAVIOR
• VRIO Framework for Assessing Human Capital as a
Competitive Advantage: This framework helps
determine if a company's human capital is a source of
sustained competitive advantage:
VRIO: • Value
• Rareness
• Imitability
• Organization
VRIO:
• Value: Do employees' KSAOs support the organization's
strategy and competitiveness? (e.g., trained teachers
delivering quality education)
• Rareness: Are these employee KSAOs unique or
difficult to find within the industry? (e.g., specialized
technical talent or unique leadership skills).
• Imitability: Is it challenging for competitors to replicate
or imitate this human capital? (e.g., a highly
collaborative and innovative team culture built over
years)
VRIO:
• Organization: Is the organization effectively structured
and managed to support and leverage this valuable,
rare, and inimitable human capital?
When all four criteria are met, the organization achieves a sustained
competitive advantage and demonstrates above-normal performance.