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0 What Is Organizational Behavior
Chapter One What Is Organizational Behavior

1 After studying this chapter, you should be able to:
Difference between OB and three other closely-related disciplines (OT, OD, & HRM) Define organizational behavior (OB). List the major challenges and opportunities for managers to use OB concepts. Henry Mintzberg’s Managerial Roles (recap) Identify the contributions made by major behavioral science disciplines to OB. Describe why managers require a knowledge of OB. L E A R N I N G O B J E C T I V E S © 2005 Prentice Hall Inc. All rights reserved.

2 After studying this chapter, you should be able to:
Explain the need for a contingency approach to the study of OB. Organization Citizenship Behavior (OCB) Identify the three levels of analysis in OB model. Employee Engagement & Organizational Commitment Literature review of the types of organizational commitment APA referencing format (additional knowledge) L E A R N I N G O B J E C T I V E S (cont’d) © 2005 Prentice Hall Inc. All rights reserved.

3 OB & 3 other closely-related disciplines
OT Organization Theory OB Organizational Behavior Theoretical OD Organization Development HRM Human Resource Management Applied Macro Micro 3/25/2017 3 © 2005 Prentice Hall Inc. All rights reserved.

4 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. E X H I B I T 1–1

5 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. E X H I B I T 1–1 (cont’d) © 2005 Prentice Hall Inc. All rights reserved.

6 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. E X H I B I T 1–1 (cont’d) © 2005 Prentice Hall Inc. All rights reserved.

7 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. © 2005 Prentice Hall Inc. All rights reserved.

8 Effective Versus Successful Managerial Activities (acc
Effective Versus Successful Managerial Activities (acc. to Dr Fred Luthans) © 2005 Prentice Hall Inc. All rights reserved.

9 Effective Versus Successful Managerial Activities (Dr Fred 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 © 2005 Prentice Hall Inc. All rights reserved.

10 Allocation of Activities by Time
Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988). E X H I B I T 1–2

11 Enter Organizational Behavior
Organizational behavior (OB) 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. © 2005 Prentice Hall Inc. All rights reserved.

12 Replacing Intuition with Systematic Study
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. © 2005 Prentice Hall Inc. All rights reserved.

13 Replacing Intuition with Systematic Study
Preconceived Notions* The Facts *Notion: a general understanding; vague or imperfect conception or idea of something. Examples: a notion of how something should be done; his notion of democracy; She had a notion to swim in the winter. © 2005 Prentice Hall Inc. All rights reserved.

14 Toward an OB Discipline
E X H I B I T 1–3 © 2005 Prentice Hall Inc. All rights reserved.

15 © 2005 Prentice Hall Inc. All rights reserved.
Source: Drawing by Handelsman in The New Yorker, Copyright © 1986 by the New Yorker Magazine. Reprinted by permission. E X H I B I T 1–4 © 2005 Prentice Hall Inc. All rights reserved.

16 Contingency Theory Contingency means that one thing depends on other things, and for organizations to be effective, there must be a “Goodness of Fit” between their structure and the conditions in their external environment. What works in one setting may not work in another setting. There is not one best way. Contingency Theory means “it depends”. Today, almost all organizations operate in highly uncertain environments. Thus, we are involved in a significant period of transition, in which the dominant paradigm of organization theory and design (OTD) is changing as dramatically as it was changed with the dawning (mean: emergence) of the Industrial Revolution. Goodness of Fit: Degree of assurance or confidence to which the results of a sample survey or test can be relied upon for making dependable projections. Described as the degree of linear correlation of variables, it is computed with the statistical methods such as ‘chi square test’ or ‘coefficient of determination’.

17 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 © 2005 Prentice Hall Inc. All rights reserved.

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 © 2005 Prentice Hall Inc. All rights reserved.

19 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 © 2005 Prentice Hall Inc. All rights reserved.

20 Basic OB Model, Stage I Model
An abstraction of reality. A simplified representation of some real-world phenomenon. E X H I B I T 1–7 © 2005 Prentice Hall Inc. All rights reserved.

21 The Dependent Variables
A response that is affected by an independent variable. x y © 2005 Prentice Hall Inc. All rights reserved.

22 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. © 2005 Prentice Hall Inc. All rights reserved.

23 The Dependent Variables (cont’d)
Absenteeism The failure to report to work. Employees Turnover The voluntary and involuntary permanent withdrawal from an organization. © 2005 Prentice Hall Inc. All rights reserved.

24 The Dependent Variables (cont’d)
Organizational Citizenship Behaviours (OCB) Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization. © 2005 Prentice Hall Inc. All rights reserved.

25 OCB (continued…) OCBs refer to individual behaviors that are beneficial to the organization and are discretionary, not directly or explicitly recognized by the formal reward system. These behaviors are rather a matter of personal choice, such that their omission are not generally understood as punishable. OCBs are thought to have an important impact on the effectiveness and efficiency of work teams and organizations, therefore contributing to the overall productivity of the organization. OCBs are often considered a subset of contextual performance.

26 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. © 2005 Prentice Hall Inc. All rights reserved.

27 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 © 2005 Prentice Hall Inc. All rights reserved.

28 Basic OB Model, Stage II E X H I B I T 1–8
© 2005 Prentice Hall Inc. All rights reserved.

29 Organizational Commitment
Organizational Commitment (The strength of an individual’s identification with an organization) Three types based on the fact that Affective Commitment (individual intends to remain in the organization) Normative Commitment (individual’s perceived obligation to remain with an organization) Continuance Commitment (individual cannot afford to leave the organization) Affective commitment For several authors, the term commitment is used to describe an affective orientation toward the organization. Kanter (1968), for example, Defined what she called "cohesion commitment“ as the attachment of an individual's fund of affectivity and emotion to the group. Likewise, Buchanan (1974) described commitment as a partisan, affective attachment to the goals and values, and to the organization for its own sake, apart from its purely instrumental worth. Porter and his associates (Mowday, Steers and Porter, 1979; Porter, Crampon and Smith, 1976; Porter, Steers, Mowday and Boulian, 1974) described commitment as the relative strength of an individual's identification with and involvement in a particular organization. It is a "partisan affective attachment to the goals and values of an organization apart from its instrumental worth" (Popper and Lipshitz, 1992). Employees who are affectively committed to an organization remain with it because they want to do so (Meyer, Allen and Gellatly, 1990). Continuance Commitment For Stebbins (1970), continuance commitment was the awareness of the impossibility of choosing a different social identity because of the immense penalties involved in making the switch. Still others have used the term "calculative" to describe commitment based on a consideration of the costs and benefits associated with organizational membership that is unrelated to affect (Etzioni, 1975; Hrebiniak and Alutto, 1972; Stevens, Beyer and Trice, 1978). Finally, Farrell and Rusbult (1981) suggested that commitment is related to the probability that an employee will leave his job and involves feelings of psychological attachment which is independent of affect. Meyer and Allen (1991) suggested that recognition of the costs associated with leaving the organization is a conscious psychological state that is shaped by environmental conditions (e.g. the existence of side bets) and has implications for behaviour (e.g. continued employment with the organization). Employees wise primary link to the organization is based on continuance commitment remain because they need to do so (Meyer and Allen,1991). Normative Commitment Finally, a less common, but equally viable, approach has been to view commitment as an obligation to remain with the organization. Marsh and Mannari (1977), for example, described the employee with "lifetime commitment" as one who considers it morally right to stay in the company, regardless of how much status enhancement or satisfaction the firm gives over the years. In a similar vein, Wiener (1982) defined commitment as the totality of internalized normative pressures to act in a way which meets organizational goals and interests and suggested that individuals exhibit these behaviours solely because they believe it is the right and moral thing to do. Normative commitment is characterized by feelings of loyalty to a particular organization resulting from the internalization of normative pressures on the individual (Popper and Lipshitz,1992). Employees with a high level of normative commitment feel they ought to remain with the organization (Meyer and Allen, 1991). © 2005 Prentice Hall Inc. All rights reserved.

30 Employee Engagement & Organizational Commitment
Excited about the job and puts best efforts into doing it but not particularly interested in the organization except as the provider of the opportunity to carry out the work. Excited about the job and puts best efforts into doing it. Fully identified with the organization and proud to go working there. Engagement Not inclined to put a lot of effort into the work and has no interest in the organization o desire to stay there Fully identified with the organization and proud to go on working there but not prepared to go the extra mile in the job. Organizational Commitment

31 Affective commitment – a literature review
For several authors, the term commitment is used to describe an affective orientation toward the organization. Kanter (1968), for example, defined what she called "cohesion commitment“ as the attachment of an individual's fund of affectivity and emotion to the group. Likewise, Buchanan (1974) described commitment as a partisan, affective attachment to the goals and values, and to the organization for its own sake, apart from its purely instrumental worth. Porter and his associates (Mowday, Steers and Porter, 1979; Porter, Crampon and Smith, 1976; Porter, Steers, Mowday and Boulian, 1974) described commitment as the relative strength of an individual's identification with and involvement in a particular organization. It is a "partisan affective attachment to the goals and values of an organization apart from its instrumental worth" (Popper and Lipshitz, 1992). Employees who are affectively committed to an organization remain with it because they want to do so (Meyer, Allen and Gellatly, 1990).

32 Continuance Commitment – a literature review
For Stebbins (1970), continuance commitment was the awareness of the impossibility of choosing a different social identity because of the immense penalties involved in making the switch. Still others have used the term "calculative" to describe commitment based on a consideration of the costs and benefits associated with organizational membership that is unrelated to affect (Etzioni, 1975; Hrebiniak and Alutto, 1972; Stevens, Beyer and Trice, 1978). Finally, Farrell and Rusbult (1981) suggested that commitment is related to the probability that an employee will leave his job and involves feelings of psychological attachment which is independent of affect. Meyer and Allen (1991) suggested that recognition of the costs associated with leaving the organization is a conscious psychological state that is shaped by environmental conditions (e.g. the existence of side bets) and has implications for behaviour (e.g. continued employment with the organization). Employees wise primary link to the organization is based on continuance commitment remain because they need to do so (ibid).

33 Normative Commitment – a literature review
Finally, a less common, but equally viable, approach has been to view commitment as an obligation to remain with the organization. Marsh and Mannari (1977), for example, described the employee with "lifetime commitment" as one who considers it morally right to stay in the company, regardless of how much status enhancement or satisfaction the firm gives over the years. In a similar vein, Wiener (1982) defined commitment as the totality of internalized normative pressures to act in a way which meets organizational goals and interests and suggested that individuals exhibit these behaviours solely because they believe it is the right and moral thing to do. Normative commitment is characterized by feelings of loyalty to a particular organization resulting from the internalization of normative pressures on the individual (Popper and Lipshitz,1992). Employees with a high level of normative commitment feel they ought to remain with the organization (Meyer and Allen, 1991).

34 References Buchanan, B (1974). "Building organizational commitment: The socialization of managers in work organizations", Administrative Science Quarterly, 19, pp Etzioni, A (1975). A comparative analysis of complex organizations, New York: Free Press. Farrel, D and Rusbult, C E (1981). "Exchange variables as predictors of job satisfaction, job commitment and turnover: The impact of rewards, costs, alternatives and investments", Organizational Behavior and Human Performance, 27, pp Hrebiniak, L G and Alutto, J A (1972). "Personal and role-related factors in the development of organizational commitment". Administrative Science Quarterly, 17, pp Kanter, R M (1968). "Commitment and social organizations: A study of commitment mechanisms in utopian communities", American Sosciological Review, 33, pp Marsh, R M and Mannari, H (1977). "Organizational commitment and turnover: A predictive study", Administrative Science Quarterly, 22, pp Meyer, J P and Allen, N J (1991). "A three-component conceptualization of organizational commitment: Some methodological considerations", Human Resource Management Review, 1, pp © 2005 Prentice Hall Inc. All rights reserved.

35 References (continued…)
Meyer, J P, Allen, N J, and Gellatly, l R (1990). "Affective and continuance commitment to the organization: Evaluation of measures and analysis of concurrent and time-lagged relations", Journal of Applied Psychology, 75, pp Mowday, R T, Steers, R M and Porter, L W (1979). "The measurement of organizational commitment", Journal of Vocational Behavior, 14, pp Popper, M and Lipshitz, R (1992). "Ask not what your country can do for you: The normative basis of organizational commitment", Journal of Vocational Behavior, 41, pp.1-12. Porter, L W, Crampton, W J and Smith, F J (1976). "Organizational commitment, managerial turnover". Organizational Behavior and human Performance, 15, pp Porter, L W, Steers, R M, Mowday, R T and Boulian, P V (1974). "Organizational commitment, job satisfaction and turnover among psychiatric technicians", Journal of Applied Psychology, 59, pp Stebbins, R A (1970). "On misunderstanding the concept of commitment: A theoretical clarification", Social Forces, 48, pp Stevens, J M, Beyer, J M, and Trice, H M (1978). "Assessing personal, role and organizational predictors of managerial commitment", Academy of Management Journal, 21, pp Wiener, Y (1982). "Commitment in organizations: A normative view", Academy of Management Review, 7, pp


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