Organization Behavior

Lets define Organization first..

Now lets define OB ….

• Definition: The study of human behavior, attitudes, and performance in organizations.

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• Value of OB: Helps people attain the competencies needed to become effective employees, team leaders/members, or managers

History of Org Behavior

• Sumerians- Record Keeping
• Egyptians- Need for Planning and Control
• Moses- Shared Leadership, Delegation
• Hamurabi- First ______?
• Alexander the Great- Use of Staff
• Niccolo Machivelli- The ends _____ the ______.

Goals of Organisation Behavior

• Explanation objective. It is probably the least important of the three goals because it occurs after the fact. If we are to understand something, however, we must begin by trying to explain it.

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• The goal of prediction focuses on future events to determine what outcomes will follow from a given action. A manager can use this information when making decisions.

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• The most controversial goal is using OB knowledge to control behavior. The idea that one person should attempt to get others to behave in a certain way, while the subjects may not know that their behavior is being manipulated, has been viewed in some circles as unethical and repugnant. While OB offers ways to control the behavior of people, whether those methods should be used is a question of ethics.

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prediction

explanation

control

Chapter 1

Chapter 1

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The Study of

Organizational

Behavior

Psychology

Sociology

Social Psychology

Anthropology

Political Science

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• Psychology is the science that seeks to measure, explain, and modify human and animal behavior. Psychologists study individual behavior. Those who have contributed to OB are learning theorists, counseling psychologists, and industrial and organizational psychologists.

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• Sociology studies people in relation to their fellow human beings. Sociology’s greatest contribution to OB has been in the areas of group behavior, work teams, organizational culture, communication, power, status, and conflict.

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• Social psychology blends the disciplines of sociology and psychology. This discipline has contributed to OB in several ways: measuring, understanding, and changing attitudes, communication patterns, and decision-making processes.

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• Anthropology is the study of societies to learn about human behavior. Much of our current understanding of organizational culture and differences between national cultures is the result of the work of anthropologists.

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• Political science is the study of behavior of groups and individuals within a political environment. This discipline has contributed to the understanding of how conflict is structured, power is allocated, and how self-interest is promoted.

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Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Challenges Facing today’s Workplace

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

• Absenteeism
• Failure to report to work
• Turnover
• Voluntary and involuntary permanent withdrawal from the organization
• Organizational citizenship behaviour
• Discretionary behaviour that is not part of an employee’s formal job requirements, but is helpful to the organization

Main trends in OB

• Globalization :
• New organizational structures
• Different forms of communication
• More competition, change, mergers, downsizing, stress
• Need more sensitivity to cultural differences
• Changing Workforce:
• Primary and secondary diversity
• More women in workforce and professions
• Different needs of Gen-X, Gen-Y

Diversity has advantages, but firms need to adjust through:

• cultural awareness
• family-friendly
• empowerment

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• Changing workforce
• Dynamic relationships
• Contingent work :no explicit or implicit contract for long-term employment
• Telecommuting
• Virtual team
• Empowerment
• Information technology
• Values & Ethics

Main trends in OB cont…

Organization Behavior is a …..

Systematic study of actions and attitudes that people exhibit….

Three behavioral determinants of the performance of employees are productivity, absenteeism, and turnover.

• Some of the dependent variables in OB

Job Satisfaction;

Productivity;

Absenteeism and Turnover

Organizational Identity

Organizational Involvement

Organizational Commitment

Organizational Citizenship Behavior

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Evolution of the 21st-Century Manager

Chapter 7

Prentice Hall, 2000

Chapter 7

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Prentice Hall, 2000

Knowledge

Primary role

Compensation Criteria

Culture orientation

Primary source of info

View of people

Communication pattern

Decision making style

ethical

relations

Basic OB Model

• What is a model????

An abstraction of reality.

Or

A simplified representation of real world phenomena

OB Framework

• The environment
• Individual process
• Interpersonal and group process
• Organizational process
• Change process

OB Framework

environment

Individual process

Interpersonal & team process

Organisational process

Change process

environment

OB Framework

Organizational Environment

All elements existing outside the boundary of the organization that have the potential to affect the organization

Organizational Environments

Management

Employees

Culture

Internal Environment

Suppliers

Competitors

Customers

Labor Market

Legal/Political

Economic

Technological

Socio-Cultural

International

General Environment

Task Environment

Technological

Suppliers

�External Environment

• General environment – affects indirectly

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• Task environment
• Affects directly
• Influences operations and performances

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• Internal environment – elements within the organization’s boundaries

General Environment

• International dimension
• Provides New
• Customers
• Competitors
• Suppliers

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• Shapes:
• Social trends
• Technological trends
• Economic trends

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• Technological Dimension
• Scientific and technological advances
• Specific industries
• Society at large
• Impact
• Competition
• Relationship with Customers
• Medical advances
• Nanotechnology advances

General Environment cont…

• Socio-Cultural Dimension
• Dimension of the general environment
• Demographic characteristics
• Norms
• Customs
• Values
• Economic Dimension
• General economic health
• Consumer purchasing power
• Unemployment rate
• Interest rates
• Recent Trends
• Frequency of mergers and acquisitions
• Small business sector vitality

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General Environment cont…

Task Environment

Sectors that have a direct working relationship with the organization

• Customers
• Competitors
• Suppliers
• Labor Market

Labor Market Forces

Labor Market Forces Affecting Organizations today

• Growing need for computer literate information technology workers
• Necessity for ongoing investment in human resources – recruitment, education, training
• Effects of international trading blocks, automation, outsourcing, shifting facility locations upon labor dislocations

Adopting to the Environment

• Boundary-spanning
• Inter-organizational partnerships
• Mergers or joint ventures

Interorganizational Partnerships

Shift in paradigm

• Trust, value added to both sides
• Equity, fair dealing, everyone profits
• E-business links to share information and conduct digital transactions
• Close coordination; virtual teams and people on site
• Involvement in partner’s product design and production
• Long-term contracts
• Business assistance goes beyond the contract

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Internal Environment

• Culture
• Employee
• Management

Levels of Corporate Culture

Visible

1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies

2. Expressed values, such as “The Penney Idea,” “The HP Way”

3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted”

Invisible

Culture that can be seen at the surface level

Deeper values and shared understandings held by organization members