1. AFTER STUDYING THIS CHAPTER AND LISTENING TO MY LECTUER,I HOPE THTAT YOU WILL BE ABLE TO:
Define organizational behavior (OB).
Describe what managers do.
Explain the value of the systematic study of OB.
List the major challenges and opportunities for managers to use OB concepts.
Identify the contributions made by major behavioral science disciplines to OB.

2. Describe why managers require a knowledge of OB.
Explain the need for a contingency approach to the study of OB.

3. What is the field of Organizational Behavior all about?
OB helps in understanding human behavior and helps in enhancing organizational effectiveness and individual well being
OB highlights four central characteristics of the field
First OB is firmly grounded in the scientific method
Second OB studies individuals groups and organizations
Third OB is interdisciplinary in nature
Fourth OB is used as he basis for enhancing effectiveness and
individual well-being

4. What is the field of Organizational Behavior all about?
OB is the study of what people think feel and do in and around
organizations
OB emerged as a distinct field around the 1940s-origin can be
traced much further
The Greek philosopher Plato wrote about the essence of
leadership
The writings of Chinese philosopher Confucius in 500 BC are
beginning to influence contemporary thinking about ethics and
In 1776 Adam advocated a new form of organizational structure
based on the division of labor

5. One hundred years later German sociologist Max Weber wrote
about rational organizations and initiated discussion on
charismatic leadership
Frederick Winslow Taylor introduced the systematic use of goal
setting and rewards to motivate employees
In the 1920s Elton Mayo and his colleagues discovered the
importance of formal and informal group dynamics
OB was organized into a unified discipline until World War II

6. Enter Organizational Behavior
Organizational behavior (OB)
Deals with human behavior in organizations. It is a multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes and organizational dynamics

7. What is Organizational behavior?
The Meaning of Organisational Behaviour (OB)
OB is the study of human attitudes, behaviour and performance. It is the study of what people do in an organisation and how that behaviour affects the performance of the organisation. As rightly indicated by J.W. Newstrom, OB is the systematic study and careful application of knowledge about how people – as individuals and as groups – act within organisations. It is an action-oriented and goal-directed discipline. Its goals are to make managers more effective at describing, understanding, predicting, and controlling human behaviour.
Describe behaviour
Understand behaviour
Predict behaviour
Control behaviour

8. What is organizational behavior and why is it important?
Scientific thinking is important to OB because:
Process of data collection is controlled and systematic
Proposed explanations are carefully tested
Only explanations that can be scientifically verified are accepted
Copyright © 2008 John Wiley & Sons, Inc.

9. Scientific methods models
simplified views of reality that attempt to identify major factors and forces underlying real-world phenomenon
Link independent variables with dependent variables
Copyright © 2008 John Wiley & Sons, Inc.

10. OB uses scientific methods to develop test generalization about behavior in organization
Copyright © 2008 John Wiley & Sons, Inc.

11. What is Organizational behavior?
OB applies the Scientific Method to Practical Managerial problems
Managers rely heavily on knowledge derived from OB research
For example researchers have shed light on such practical questions
How can goals be set to enhance people’s job performance?
How many jobs be designed so as to enhance employees feelings of satisfaction?
Under what conditions do individuals make better decisions than groups?
What can be done to improve the quality of organizational communication?
What steps can be taken to alleviate work related stress?
What do leaders do to enhance the effectiveness of their teams?
How can organizations be designed to make people highly productive?

12. What is Organizational behavior?
OB applies the Scientific Method to Practical Managerial problems
OB through the scientific research and theory will answer to the questions
It is safe to say that the scientific and applied facets of OB not only coexist but complements each other
Just as knowledge about the properties of physics may be put to use by engineers and engineering data can be used to test theories of basic physics
Knowledge and practical applications are closely interwined in the field of OB

13. What is the secret source that makes company the best place to work
the secret source that makes a company the best place to work for?
High and differentiated compensation
Innovative titles
Faster career progression plans
Meaningful growth avenues
More satisfying jobs
Overseas exposure
Opportunity to work on cutting-edge technologies and problems
Referral schemes etc. (many a time, employees may want a bit of all these and much more!)

14. What Managers Do Managers (or administrators)
Individuals who achieve goals through other people.
Managerial Activities
Make decisions
Allocate resources
Direct activities of others to attain goals

15. Where Managers Work Organization
A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

16. Management Functions Management Functions Planning Organizing Leading
Controlling
Management Functions

17. Management Functions (cont’d)
Planning
A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

18. Management Functions (cont’d)
Organizing
Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

19. Management Functions (cont’d)
Leading
A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

20. Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

21. Roles Managerial Roles
Henry Mintzberg offered a view of the managing job that throws considerable light on how managers perform their work. Managers, according to Mintzberg, must fill many roles as they carry out the management functions. These roles can be grouped into three categories: interpersonal, informational and decisional.

22. Mintzberg’s Managerial Roles
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

23. Roles Interpersonal relationships essential to all managerial work
Managers team leaders should be able to develop maintain and work well with wide variety of people-outside and inside the organization
Work with task networks-(of specific job related contacts
Career networks(of career guidance and opportunity resources)
Social networks(trustworthy friends and peers)

24. Mintzberg’s Managerial Roles (cont’d)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

25. Mintzberg’s Managerial Roles (cont’d)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

26. Mindset
Recently Henry Mintzberg and his colleague Jonathan Gosling asked question
What does it mean to think like a manager
Complexity of managerial work
To help managers develop attitudes and ways of thinking
that can improve their effectiveness
Defined managerial mind set as an attitude a frame of mind
that opens up new vistas

27. Mindset The five mind sets important to success in managerial work
The reflective mindset deals with being able to manage oneself
The analytic mindset deals with managing organizational operations and
decisions
The worldly mindset deals with managing in the global context
The collaborative mindset deals with managing relationships
The action mindset deals with managing change
All five mind sets must work together for managerial decisions

28. Skills
A skill is an ability to translate knowledge into action that results in a desired performance

29. Skills Managerial skills
Performing management functions and roles and achieving competitive advantage are the principal characteristics of a manager’s job. Merely understanding this fact, however, does not guarantee success. Managers need a variety of skills to do these things well. Skills here refer to specific abilities that result from knowledge, information, practice and aptitude. Robert L. Katz has identified three basic types of skills – technical, human and conceptual – that he says are needed by all managers.

30. Management Skills
Technical skills The ability to apply specialized knowledge or expertise.
Human skills The ability to work with, understand, and motivate other people, both individually and in groups.
Conceptual Skills The mental ability to analyze and diagnose complex situations.

31. Management Skills Emotional intelligence
ability to understand and deal with emotions
Self-awareness-ability to understand your own moods and emotions
Self-regulation-ability to think before acting and control disruptive impulses
Motivation-ability to work hard and persevere
Empathy-ability to understand the emotions of others
Social skill-ability to gain rapport with others and build good relationships
2008 John Wiley & Sons, Inc.

32. Effective Versus Successful Managerial Activities (Luthans)
Traditional management
Decision making, planning, and controlling
Communication
Exchanging routine information and processing paperwork
Human resource management
Motivating, disciplining, managing conflict, staffing, and training
Networking
Socializing, politicking, and interacting with others

33. Allocation of Activities by Time
Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).

34. Multidisciplinary Nature of OB
OB is multidisciplinary in nature. It is, in fact, an applied behavioural science that is built on contributions from a wide variety of social science disciplines, such as psychology, sociology, social psychology, anthropology, political science, economics etc.
The Multidisciplinary Roots of OB
Discipline Relevant OB topics
Psychology - Perception and learning, personality, emotion and stress, attitudes, motivation, decision-making and creativity.
Sociology - Group dynamics, socialisation, communication, intergroup behaviour, power, conflict.
Social
Psychology - Intergroup collaboration, group decision-making, integration of individual needs with group activities, effect of change on individuals.
Anthropology- Organisational culture, leadership, organisational empowerment
Economics Decision-making, organisational power
Political Science Conflict, intra-organisational politics, manipulating power for
individual self-interest.

35. Toward an OB Discipline

36. Contributing Disciplines to the OB Field
Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

37. Contributing Disciplines to the OB Field (cont’d)
Sociology The study of people in relation to their fellow human beings.

38. 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.

39. Contributing Disciplines to the OB Field (cont’d)
Anthropology The study of societies to learn about human beings and their activities.

40. Contributing Disciplines to the OB Field (cont’d)
Political Science The study of the behavior of individuals and groups within a political environment.

41. Emerging fields from which organizational behavior knowledge is acquired
Discipline (traditional )
Relevant OB topics
Economics
Decision making, negotiation , organizational power
Industrial engineering
Job design, productivity, work measurement
Emerging disciplines
Communications
Knowledge management, electronic mail, corporate culture , employee socialization
Information systems
Team dynamics, decision making, knowledge management
Marketing
Knowledge management, creativity, decision making
Women’s studies
Organizational power,perception

42. Five anchors of Organizational Behavior
Multidisciplinary anchor
OB should import knowledge from many disciplines
Systematic research anchor
OB should study organizations using systematic research methods
Contingency anchor
OB theory should recognize that the effects of actions often vary with the situation
Multiple levels of analysis anchor
OB knowledge should include three levels of analysis:individual,team,and organization
Open system anchor
OB should view organizations as open systems that interact with their environment

43. Open System view External Environment Inputs RM HR Information
Financial resource equipment
Subsytems
Transforming inputs to outcomes
Outputs
Product/services
Employee behaviors
Profits/losses
Waste/pollution

44. -Subsystems such as process(communication and reward systems) -Task activities(Production, marketing) -Social dynamics(informal groups, power dynamics) -Aid of technology(equipment ,work method and information) These subsystems transform inputs into outputs

45. External Environment and stakeholders
Successful organizations monitor their environments and are able to maintain a close fit with changing conditions
Configure their outputs(new products and services, reducing waste)
Transforming their processes
Organizations need to adapt to changing environment
Stakeholders represent a central part of the internal and external environment
Stakeholders influence the firms access to inputs and ability to discharge outputs
If leaders pay attention to only shareholders organization will be trouble
Cannot ignore corporate social responsibility

46. There Are Few Absolutes in OB
There are few if any simple and universal principles that explain OB
Laws in the physical sciences-chemistry astronomy physics-that are consistent apply in a wide range of situations
Scientists generalize –pull of gravity-confident about sending astronauts into space to repair satellites
Human beings complex-not alike-our ability to make simple accurate and sweeping
generalization is limited
Behavior changes in different situations
Does not mean that reasonably accurate explanations of human behavior or make valid predictions
OB concepts must reflect situational or contingency conditions

47. There Are Few Absolutes in OB
Contingency variables
Situational factors: variables that moderate the relationship between two or more other variables and improve the correlation.
Contingency Variables x y

48. Challenges and Opportunities for OB
Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Coping with anti-capitalism backlash
Overseeing movement of jobs to countries with low-cost labor
Managing Workforce Diversity
Embracing diversity
Changing demographics
Implications for managers
Recognizing and responding to differences

49. Major Workforce Diversity Categories
Gender
National Origin
Disability
Age
Race
Domestic Partners

50. 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

51. 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.

52. Challenges and Opportunity for OB (cont’d)
Improving People Skills
Empowering People
Stimulating Innovation and Change
Coping with “Temporariness”
Working in Networked Organizations
Helping Employees Balance Work/Life Conflicts
Improving Ethical Behavior

53. Models of OB Models of OB
A model is a simplified presentation of some real-world phenomenon. The OB model focuses attention on three distinct levels of analysis—individuals, groups and organisations. It tries to look into the impact the individuals, groups and organisations have on the behaviour of members working in an organisation. It tries to utilise this knowledge with a view to improve organisational performance. The model of OB is generally built around two sets of variables, namely dependent variables (productivity, absenteeism, turnover, job satisfaction) and independent variables (individual level variables, group level variables and organisation system level variables). The basic objective of any model of OB is to make managers more effective at describing, understanding, predicting and controlling human behaviour.

54. Basic OB Model
Model
An abstraction of reality. A simplified representation of some real-world phenomenon.

55. The Dependent Variables
A response that is affected by an independent variable. x y

56. The Dependent Variables (cont’d)
Productivity A performance measure that includes effectiveness and efficiency.
Effectiveness Achievement of goals.
Efficiency The ratio of effective output to the input required to achieve it.

57. The Dependent Variables (cont’d)
Absenteeism
The failure to report to work.
Turnover
The voluntary and involuntary permanent withdrawal from an organization.

58. The Dependent Variables (cont’d)
Organizational citizenship behavior (OCB)
Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.

59. The Dependent Variables (cont’d)
Job satisfaction
A general attitude toward one’s job, the difference between the amount of reward workers receive and the amount they believe they should receive.

60. The Independent Variables
The presumed cause of some change in the dependent variable.
Independent Variables
Individual-Level Variables
Organization System-Level Variables
Group-Level Variables

61. Organisation Structure Organisational Culture,
Creativity and Innovation
Human Resource Policies and
Practices
Organisation Level
Organisational Change and
Development
International Organisational
Behaviour
Productivity
Group Behaviour
Teams and Teamwork
Communication
Group
Leve l
Outcomes
Leadership
Absenteeism
Power and Politics
Conflict and Negotiation
Turnover
Job
Satisfaction
Cont….

62. Basic OB Model Personality Perception and Attribution
Ethics and Social
Responsibilities
Values, Attitudes and Job
Satisfaction
Individual Level
Learning and Behaviour
Modification
Basic Concepts in Motivation
Job Design, Empowerment
and Work Scheduling
Basic OB Model
Resources

63. Basic OB Model
The model examines the variables influencing individual behavior
The knowledge obtained at the individual level will help us analyse the behaviour at group level and organisational level.