1. The Nature and Scope of Organizational Behavior
Chapter 1
The Nature and Scope of Organizational Behavior

2. The Meaning of Organizational Behavior
Organizational behavior (OB) is
the study of human behavior in the workplace,
the interaction between people and the organization,
and the organization itself.
Organizational behavior’s major goals are to explain, predict, and control behavior.

3. Data Collection and Research Methods
Data collection methods
Survey questionnaires
Interviews
Direct observation
Systematic observation
Participant observation
Researcher methods
Case studies
Laboratory experiments
Field experiments (or studies)
Meta-analysis

4. Benefits of Studying OB
Develop skills to function effectively in the workplace.
Grow personally through insight into human behavior.
Improve overall organizational effectiveness.
Sharpen and refine common sense.

5. Why should managers study OB?

6. OB helps in understanding Organization and Employees in a better way:
Studying OB helps to understand organization and people in a better way. When we can understand organization and employees, it helps to develop friendly relationship between organization and employees creating a proper working environment in an organization.
Studying OB helps to find out the factor causing the behavior, and helps to apply different strategies to control the critical behavior which harms the organization.

7. OB helps in motivating employees
Studying OB helps managers to motivate the employees bringing a good organizational performance. As every individual differs from each other, therefore OB helps managers to apply appropriate motivational tools and techniques in accordance with the nature of individual employees. This helps achieving organizational goal properly.

8. OB helps in improving industrial/labor relations
Studying OB helps to improve industrial/labour relations. OB helps in understanding the root- cause of the problem, predict its future course of action and control its negative consequences. As, managers are aware about the positive and negative consequences of the behavior, it enables managers to maintain friendly relations with their employees which creates peace and harmony in the organization.

9. OB helps in predicting and controlling human behavior
Studying OB helps to predict and control human behavior. It is the one of the most important reason for studying OB. If OB is studied properly then it helps to bring organizational effectiveness.

10. OB helps in effective utilization of human resources
Studying OB helps in effective utilization of Human Resources. Knowledge of OB helps managers to manage people effectively in the organization. It enables managers to inspire and motivate employees toward higher productivity and better results as the manager is able to analyze and understand nature and behavior of his employees.

11. Key Developments in OB History
The Classical Approach to management
Scientific management:
The application of scientific methods to increase an individual worker’s productivity.
Frederick W. Taylor
Administrative management
The use of management principles (planning, organizing, commanding, coordinating, and controlling) to efficiently structure and manage organizations.
Henri Fayol
Max Weber

12. Key Developments in OB History (cont’d)
The Hawthorne Studies at Western Electric
Originally intended as a study of the effects of environmental changes on productivity.
The Hawthorne Effect—the tendency of people to behave differently (perform better) when they receive attention.

13. Key Developments in OB History (cont’d)
The Hawthorne Studies’ Key Findings
Economic incentives are less potent than generally believed in influencing individual output.
Dealing with human problems is complicated and challenging.
Leadership practices and work-group pressures strongly influence productivity, satisfaction and performance.
Personal problems influence worker productivity.
Effective communication is critical to success.
Factors embedded in the social system influence behavior.

14. Key Developments in OB History (cont’d)
The Human Relations Movement
Based on belief that managerial practices, morale, and productivity are strongly linked and that the proper working environment enhances worker capabilities.

15. Key Developments in OB History (cont’d)
Douglas McGregor
Theory X
Managers assume people dislike work, avoid responsibility, lack ambition, and need close supervision.
Theory Y
Managers assume people enjoy work, accept responsibility, are innovative and are self-controlling.

16. Key Developments in OB History (cont’d)
The Contingency Approach
Emphasizes that there is no one best way to manage people.
Different situations require managers to make decisions about managerial methods and approaches.
Knowledge of organizational behavior and management is essential before deciding a course of action.

17. Skill Development in Organizational Behavior
General Learning Model
Conceptual information and behavioral guidelines
Conceptual information demonstrated by example and brief descriptions
Experiential exercises in the form of practice cases and self-assessment exercises
Feedback on skill utilization or performance from others
Frequent practice

18. A Model for Developing Organizational Behavior Skills
EXHIBIT 1-1

19. A Framework for Studying Organizational Behavior
The Organizational System
and the Global Environment
Organizational structure and design
Organizational culture and change
The learning organization and
knowledge management
Cultural diversity and international
organizational behavior
Individual Level
Individual differences, mental
ability, and personality
Learning, perception, attitudes,
values, and ethics
Individual decision making
and creativity
Foundation concepts of motivation
Conflict, stress, and well-being
Groups and Interpersonal
Relations
Interpersonal communication
Group dynamics and teamwork
Leadership
Power, politics, and influence
EXHIBIT 1-2