1. Chapter one : managing people and organization
University of Bahrain
College of Business Administration
MGT 233: Organizational Behavior Managing People and Organization
Chapter one : managing people and organization
RICKY W.GRIFFN
GREGORY MOORHEAD
Dr.Mahnmood Asad
MGT 233

2. Chapter Learning Objectives After studying this chapter you should be able to:
Define organizational behavior.
Identify the functions that comprise the management process and relate them to organizational behavior.
Relate organizational behavior to basic managerial roles and skills.
Describe contemporary organizational behavior characteristics.
Discuss contextual perspectives on organizational behavior.
Describe the role of organizational behavior in managing for effectiveness
Dr.Mahnmood Asad
MGT 233

3. What is Organizational Behavior?
Organizational behavior (OB) is the study of:
Human behavior in organizational settings
The interface between human behavior and the organization
The organization itself
MGT 233
Dr.Mahnmood Asad

4. The Nature of Organizational Behavior
FIGURE 1.1
Dr.Mahnmood Asad
MGT 233

5. The Importance of Organizational Behavior
Organizations can have a powerful influence on our lives:
Most people are born and educated in organizations
Most people acquire most of their material possessions from organizations
Most people die as members of organizations
Many of our activities are regulated by governmental organizations
Most people spend most of their lives in organizations
MGT 233
Dr.Mahnmood Asad

6. Organizational Behavior and Management: Why Study OB?
Studying organizational behavior can clarify factors that affect how managers manage by:
Describing the complex human context of organizations
Defining the associated opportunities, problems, challenges, and issues
Isolating important aspects of the manager’s job
Offering specific perspectives on the human side of management
MGT 233
Dr.Mahnmood Asad

7. Why Study OB? (cont’d) Studying OB helps managers understand:
The behaviors of others in the organization
Personal needs, motives, behaviors, feelings and career dynamics
Attitudinal processes, individual differences, group dynamics, inter group dynamics, organization culture, power, and political behavior
Interactions with people outside of the organization and other organizations
The environment, technology, and global issues
Dr.Mahnmood Asad
MGT 233

8. Organizational Behavior and the Management Process
Management Functions
Planning
Organizing
Leading
Controlling
Resources Used by Managers
Human
Financial
Physical
Information
MGT 233
Dr.Mahnmood Asad

9. Functions of Management
Planning
Determining an organization’s desired future position and the best means of getting there
Organizing
Designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units
Leading
Getting organizational members to work together toward the organization’s goals
Controlling
Monitoring and correcting the actions of the organization and its members to keep them directed toward their goals
MGT 233
Dr.Mahnmood Asad

10. Basic Managerial Functions
FIGURE 1.2
Dr.Mahnmood Asad
MGT 233

11. Organizational Behavior and Manager’s Job
Managers must play a variety of roles using a set of critical skills in order to carry out the basic management functions successfully
MGT 233
Dr.Mahnmood Asad

12. Organizational Behavior and the Manager’s Job
Interpersonal
Informational
Decision-Making
Basic Managerial Roles
MGT 233
Dr.Mahnmood Asad

13. Important Managerial Roles Category Role Example
Table 1.1
Important Managerial Roles
Category
Role
Example
Interpersonal
Figurehead
Attend employee retirement ceremony
Leader
Encourage workers to increase productivity
Liaison
Coordinate activities of two committees
Informational
Monitor
Scan Business Week for information about competition
Disseminator
Send out memos outlining new policies
Spokesperson
Hold press conference to announce new plant
Decision-Making
Entrepreneur
Develop idea for new product and convince others of its merit
Disturbance handler
Resolve dispute
Resource allocator
Allocate budget requests
Negotiator
Settle new labor contract
Dr.Mahnmood Asad
MGT 233

14. Critical Managerial Skills
Technical
Skills necessary to accomplish specific tasks within the organization
Interpersonal
Skills used to communicate with, understand, and motivate individuals and groups
Conceptual
Skills used in abstract thinking
Diagnostic
Skills to understand cause-effect relationships and to recognize optimal solutions to problems
MGT 233
Dr.Mahnmood Asad

15. Managerial Skills at Different Organizational Levels
FIGURE 1.3
Managerial Skills at Different Organizational Levels
Dr.Mahnmood Asad
MGT 233

16. Contemporary Organizational Behavior
Organizational behavior is characterized by an interdisciplinary focus and a descriptive nature.
Dr.Mahnmood Asad
MGT 233

17. Contemporary Organizational Behavior
Characteristics of the Field
Interdisciplinary in focus
Descriptive in nature
Basic Concepts of the Field
Individual processes
Interpersonal processes
Organizational processes/characteristics
MGT 233
Dr.Mahnmood Asad

18. Characteristics of the Field
An Interdisciplinary Focus: Organizational behavior synthesizes several other fields, including psychology, sociology, anthropology, political science, economics, engineering, and medicine
2. A Descriptive Nature : Currently the primary goal of organizational behavior is to describe, rather than prescribe, relationships between two or more behavioral variables. Reasons for organizational behavior’s descriptive nature include the immaturity of the field, the complexities of studying human behavior, and the lack of valid, reliable, and accepted definitions and measures.
MGT 233
Dr.Mahnmood Asad

19. Basic Concepts of the Field
The concepts of primary concern for organizational behavior can be grouped into three categories: individual processes, interpersonal processes, and organizational processes and characteristics
MGT 233
Dr.Mahnmood Asad

20. Basic Concepts of the Field
Individual processes : include individual differences (attitudes, personalities, etc.), perception, attribution, employee motivation, learning, reinforcement, and work stress
Interpersonal processes : deal with communication in organizations, groups, teams, leadership, decision making, and negotiations .
Organizational processes and characteristics : include organization structure, organization design, organization culture, and organization change and development
MGT 233
Dr.Mahnmood Asad

21. The Framework for Understanding Organizational Behavior
FIGURE 1.4
The Framework for Understanding Organizational Behavior
Dr.Mahnmood Asad
MGT 233

22. Contemporary Organizational Behavior
Contextual Perspectives on Organizational Behavior :
Systems Perspective
Situational Perspective
Contingency
Interactional
MGT 233
Dr.Mahnmood Asad

23. Contextual Perspectives on Organizational Behavior.
Several contemporary perspectives have evolved from the field of organizational behavior.
1. A.Systems and Situational Perspectives :
The systems and situational perspectives are concerned with interrelationships among organizational elements and between organizational and environmental elements.
Done by Dr.MAHMOOD ALI
Dr.Mahnmood Asad
MGT 233

24. The Systems Perspective
An interrelated set of elements that function as a whole—inputs are combined/transformed by managers into outputs from the system
Value of the Systems Perspective
Underscores the importance of an organization’s environment
Conceptualizes the flow and interaction of various elements of the organization.
Dr.Mahnmood Asad
MGT 233

25. The Situational Perspective
Recognizes that most organizational situations and outcomes are influenced by other variables
The Universal Model
Presumes a direct cause-and-effect linkage between variables
Complexities of human behavior and organizational settings make universal conclusions virtually impossible
Dr.Mahnmood Asad
MGT 233

26. The Systems Approach to Organizations
FIGURE 1.5
The Systems Approach to Organizations
Dr.Mahnmood Asad
MGT 233

27. Universal Versus Situational Approach
FIGURE 1.6
Universal Versus Situational Approach
Dr.Mahnmood Asad
MGT 233

28. Interactionalism: People and Situations
Interactionalist Perspective
Focuses on how individuals and situations interact continuously to determine individuals’ behavior
Attempts to explain how people select, interpret, and change various situations.
Dr.Mahnmood Asad
MGT 233

29. The Interactionalist Perspective on Behavior in Organizations
FIGURE 1.7
The Interactionalist Perspective on Behavior in Organizations
Dr.Mahnmood Asad
MGT 233

30. Managing for Effectiveness
Managers work toward accomplishing the various goals (outcomes) that exist at specific levels in an organization :
1. Individual-level outcomes result from individual behaviors, including productivity, performance, absenteeism, and turnover. Attitudes and stress are other individual-level outcomes influenced by managers.
2.Group and team-level outcomes include productivity, performance, and attitudes just as individuals do. But groups may also develop norms of behavior and levels of cohesiveness.
3.Organization-level outcomes, in addition to those for individuals and groups, may include measures of financial performance such as profitability, stock price, return on investment, growth rate, and so on
MGT 233
Dr.Mahnmood Asad

31. Managing for Effectiveness
FIGURE 1.8
Managing for Effectiveness
MGT 233
Dr.Mahnmood Asad

32. Organizational Behavior in Action
Based on your reading of the chapter opening case:
What is employee turnover so low at Wegmans?
Which basic managerial roles and skills is Danny Wegman using to show his employees that the organization really cares about them?
Why haven’t competitors adopted the Wegmans’ employee-focused strategy?
Dr.Mahnmood Asad
MGT 233