Organization Behavior

•Definition
•Features
•Significance
•Various Disciplines.
•Challenges & opportunities

1
 Organization Behavior

• . . . 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.

2
 Organizational
Behavior -
systematic study of
the actions
and attitudes
that people
exhibit within
organizations

3
 Features of OB

•Behavioral approach to management

•Body of theory, research & application
•Human tool for human benefit
•Influenced by other disciplines
•3 levels of analysis
•Is action oriented & goal directed
•Science & art
•Fulfils org. needs & objectives
4 •Systematic study & not based on intuitions
 Organizational Iceberg

5
 Significance of OB

1. Understanding of self & others

2. Motivation
3. Effective communication
4. Effective organizational climate
5. Good HR relation

6
 Effective Versus Successful Managerial
Activities (Luthans)

1.
1.Traditional
Traditionalmanagement
management
• •Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
2.
2.Communication
Communication
• •Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
3.
3.Human
Humanresource
resourcemanagement
management
• •Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,
and
andtraining
training
4.
4.Networking
Networking
• •Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others
7
 Allocation of Activities by Time

Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, E X H I B I T 1–2

Real Managers (Cambridge, MA: Ballinger, 1988). E X H I B I T 1–2
8
 Replacing Intuition with Systematic
Study
Intuition
A feeling not necessarily supported by research.

Systematic study
Looking at relationships, attempting to attribute
causes and effects, and drawing conclusions based
on scientific evidence.
Provides a means to predict behaviors.
9
 Replacing Intuition with Systematic
Study

Preconceived The
Notions ≠ Facts

10
 Toward an OB
Discipline

E X H I B I T 1–3
E X H I B I T 1–3
11
 Contributing Disciplines to the OB Field
Psychology
The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals.

E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
12
 Contributing Disciplines to the OB Field
(cont’d)
Sociology
The study of people in relation to their fellow human beings.

Group

Organization
system
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
13
 Contributing Disciplines to the OB Field
(cont’d)
Social Psychology
An area within psychology that blends concepts from psychology
and sociology and that focuses on the influence of people on one
another.

E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
14
 Contributing Disciplines to the OB Field
(cont’d)
Anthropology
The study of societies to learn about human beings and their
activities.

E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
15
 Contributing Disciplines to the OB Field
(cont’d)
Political Science
The study of the behavior of individuals and groups
within a political environment.

E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
16
 Challenges and Opportunities for OB
Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Managing Workforce Diversity
Embracing diversity
Implications for managers
 Recognizing and responding to differences

17
 Managing Diversity

Workforce diversity
-organizations are
becoming a more
heterogeneous mix of
people in terms of
gender, age, race,
ethnicity, and sexual
orientation

18
 Challenges and Opportunities for OB
(cont’d)
Improving Quality and Productivity
Quality management (QM)
Process reengineering
Responding to the Labor Shortage
Changing work force demographics
Fewer skilled laborers
Early retirements and older workers
Improving Customer Service
Increased expectation of service quality
Customer-responsive cultures

19
 What Is Quality Management?

1. Intense focus on the customer.

2. Concern for continuous improvement.

3. Improvement in the quality of everything the

organization does.
4. Accurate measurement.

5. Empowerment of employees.

E X H I B I T 1–6
E X H I B I T 1–6
20
 Improving Quality and Productivity
Quality management (QM)
The constant attainment of customer satisfaction through
the continuous improvement of all organizational
processes.
Requires employees to rethink what they do and become
more involved in workplace decisions.
Process reengineering
Asks managers to reconsider how work would be done
and their organization structured if they were starting over.
Instead of making incremental changes in processes,
reengineering involves evaluating every process in terms
of its contribution.

21
 Challenges and Opportunity for OB
(cont’d)
Improving People Skills
Empowering People
Stimulating Innovation and Change
Coping with “Temporariness”
Helping Employees Balance Work/Life
Conflicts
Improving Ethical Behavior

22
 A Downside to Empowerment?

23
 E X H I B I T 1–8
E X H I B I T 1–8
24