Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 15th Edition Copyright © 2014 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 15e What Is Organizational Behavior? 1-0

Chapter Learning Objectives  After studying this chapter you should be able to: –Demonstrate the importance of interpersonal skills in the workplace. –Describe the manager’s functions, roles, and skills. –Define organizational behavior (OB). –Show the value to OB of systematic study. –Identify the major behavioral science disciplines that contribute to OB. –Demonstrate why few absolutes apply to OB. –Identify the challenges and opportunities managers have in applying OB concepts. –Compare the three levels of analysis in this book’s OB model. 1-1

Goals of Organization Behavior Four goals of Organization Behavior are to 1.Describe : How people behave under a variety of conditions 2.Understand: why people behave as they do 3.Predict: Who will be dedicated, productive and who might be absent so that managers can take preventive actions 4.Control human behavior: Skill development, team effort, and productivity

Organizational Behavior  Organizational Behavior is the systematic study and careful application of knowledge about how people and individuals as groups act within an organization  Organizational Behavior provides a useful set of tools at many levels of analysis  It helps the managers to understand the complexities involved in interpersonal relations when two people interact

The Importance of Interpersonal Skills  Understanding OB helps determine manager effectiveness –Technical and quantitative skills are important –But leadership and communication skills are CRITICAL  Organizational benefits of skilled managers –Lower turnover of quality employees –Higher quality applications for recruitment –Better financial performance 1-4

What Managers Do They get things done through other people.  Management Activities: –Make decisions –Allocate resources –Direct activities of others to attain goals  Work in an 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. 1-5

Management Functions 1-6 PlanOrganize LeadControl Managers

Nature of people –Individual differences: From the day of birth each person is unique and individual experience after birth makes people even more different. So management can motivate employees best by treating them differently. This belief that each person is different from all others is called the law of individual differences. –Perception: People look at the world and see things differently. Even when presented with a same object, two people can see things in two different way. their view of their objective environment is filtered by perception. Managers must learn to except perceptual differences among their employees accept people as emotional being and manage them individual ways.

Nature of people –A whole person: Some organizations wish they could employ only a person’s skills or brains, they actually employ a whole person rather than certain characteristics. Skill does not exist apart from background or knowledge. Home life is not totally separable from work life. Emotional conditions are not separate from physical conditions. People function as total human being. –Motivated behavior: Motivation is essential to the operation of organization. –Desire for involvement: Organizations need to provide opportunities for meaningful involvement. This can be achieved through employee empowerment. A practice that will result mutual benefit for both parties. –Value of the person: People deserve to be treated differently from other factors of production (land, Capital & Technology). They want to be treated with care, respect and dignity. They refuse to accept the old idea that they are simply economic tools. They want to be valued for their skills and ability.

Fundamental Concepts continued..  Nature of Organizations –Social Systems : Organizations are social systems. Activities are governed by social laws and psychological laws. –Mutual interest: People and organization need each other. Managers need employees to reach organizations objectives. If mutuality is lacking, developing cooperation makes no sense. –Ethics: To attract valuable employees, organization must treat employees in an ethical fashion. Like code of ethics, ethical training, reward system

 Discovered ten managerial roles  Separated into three groups: –Interpersonal –Informational –Decisional Mintzberg’s Managerial Roles 1-10

Mintzberg’s Managerial Roles: Interpersonal 1-11 Figurehead LiaisonLeader Interpersonal Roles See E X H I B I T 1–1 for details

Mintzberg’s Managerial Roles: Informational 1-12 Monitor DisseminatorSpokesperson Informational Roles See E X H I B I T 1–1 for details

Mintzberg’s Managerial Roles: Decisional Decisional Roles 1-13 Entrepreneur Disturbance handler Resource allocator Negotiator See E X H I B I T 1–1 for details

Essential 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 1-14

Luthans’ Study of Managerial Activities  Four types of managerial activity: –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 1-15

Contributing Disciplines PsychologySociology Social Psychology Anthropology See E X H I B I T 1–3 for details Many behavioral sciences have contributed to the development of Organizational Behavior 1-16

Challenges and Opportunities for OB The major challenges and opportunities are:  Responding to Economic Pressures  Responding to Globalization  Managing Workforce Diversity Some other challenges and opportunities include:  Improving Customer Service  Improving People Skills  Stimulating Innovation and Change  Coping with “Temporariness”  Working in Networked Organizations  Helping Employees Balance Work-Life Conflicts  Creating a Positive Work Environment  Improving Ethical Behavior 1-17

Responding to Economic Pressures  What do you do during difficult economic times? –Effective management is critical during hard economic times. –Managers need to handle difficult activities such as firing employees, motivating employees to do more with less, and working through the stress employees feel when they are worrying about their future. –OB focuses on issues such as stress, decision making, and coping during difficult times. 1-18

Responding to Globalization  Increased foreign assignments  Working with people from different cultures  Overseeing movement of jobs to countries with low- cost labor 1-19

Managing Workforce Diversity  The people in organizations are becoming more heterogeneous demographically –Embracing diversity –Changing demographics –Changing management philosophy –Recognizing and responding to differences Disability Gender Age National Origin Religion Race Domestic Partners 1-20

Interesting OB Dependent Variables  Productivity –Transforming inputs to outputs at lowest cost. Includes the concepts of effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).  Absenteeism –Failure to report to work – a huge cost to employers.  Turnover –Voluntary and involuntary permanent withdrawal from an organization.  Deviant Workplace Behavior –Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members. 1-21

More Interesting OB Dependent Variables  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.  Job Satisfaction –A general attitude (not a behavior) toward one’s job; a positive feeling of one's job resulting from an evaluation of its characteristics. 1-22

The Independent Variables The independent variable (X) can be at any of these three levels in this model:  Individual –Biographical characteristics, personality and emotions, values and attitudes, ability, perception, motivation, individual learning, and individual decision making  Group –Communication, group decision making, leadership and trust, group structure, conflict, power and politics, and work teams  Organization System –Organizational culture, human resource policies and practices, and organizational structure and design 1-23

Summary and Managerial Implications  Managers need to develop their interpersonal skills to be effective.  OB focuses on how to improve factors that make organizations more effective.  The best predictions of behavior are made from a combination of systematic study and intuition.  Situational variables moderate cause-and-effect relationships, which is why OB theories are contingent.  There are many OB challenges and opportunities for managers today.  The textbook is based on the contingent OB model. 1-24

To Do before next class  Buy the Text Book  Exchange team member contact information  Read Chapter 1  Make 2 MCQ each  Submit to Team leader  Team leader these to instructor on Saturday 