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Organizational Behavior MBA-542 Instructor: Erlan Bakiev, Ph.D.

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1 Organizational Behavior MBA-542 Instructor: Erlan Bakiev, Ph.D.

2 Chapter 1 Introduction to Organizational Behavior
Essentials of Organizational Behavior, 11/e Stephen P. Robbins & Timothy A. Judge Chapter 1 Introduction to Organizational Behavior

3 After reading this chapter, you should be able to:
Define organizational behavior (OB). Explain 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. Identify the three levels of analysis in OB.

4 The Field of Organizational Behavior
Organizational Behavior studies the influence that individuals, groups and structure have on behavior within organizations. Its chief goal is to apply that knowledge toward improving an organization’s effectiveness. Organizational behavior looks at how individuals, groups and structure can influence the behavior within an organization. This study is done so that we can use the knowledge to improve organizational outcomes and thereby its effectiveness.

5 Focal Points of OB Jobs Work Absenteeism Employment turnover
Productivity Human performance Management Some key areas we will look at in this course are aspects of jobs and work and how they impact organizational effectiveness. We will also look at work aspects such as absenteeism, employee turnover and productivity to see how various theories or practices influence these behaviors. In addition, we will look at the intersection of human performance and management and how various practices can improve performance.

6 Complementing Intuition with Systematic Study
Intuition: your “gut feeling” explanation of behavior. Systematic study improves ability to accurately predict behavior. Assumes behavior is not random. Fundamental consistencies underlie behavior. These can be identified and modified to reflect individual differences. Often our intuition leads us in the decision making process. Our intuition relies on gut feelings, individual observation and commonsense. Although our intuition is extremely useful in the decision making process it does not give us the complete picture. By engaging in a systematic study of behavior we can enhance our effectiveness. It is not an either or relationship, rather intuition and systematic study can work effectively together to predict behavior.

7 Systematic Study Examines relationships.
Attempts to attribute causes and effects. Bases conclusions on scientific evidence: On data gathered under controlled conditions. Data is measured and interpreted in a reasonably rigorous manner. When we talk about engaging in a systematic study we are talking about looking at relationships. By doing so we can better determine cause and effect and then by applying scientific evidence to our conclusions we are better able to predict behavior.

8 Evidence-Based Management
Complements systematic study. Bases decisions on the best available scientific evidence. Forces managers to become more scientific in their thinking. Evidence-based management (EBM) complements systematic study by applying scientific evidence to managerial decisions.

9 Contributing Disciplines to the OB Field
Psychology Social Psychology Sociology Anthropology Micro: The Individual Macro: Groups & Organizations Organizational Behavior (OB) is interdisciplinary in nature as it is an applied behavioral science. The theory in OB relies on contributions from multiple behavioral disciplines. These disciplines include Psychology, Social Psychology, Sociology and Anthropology.

10 Few Absolutes in OB Impossible to make simple and accurate generalizations Human beings are complex and diverse OB concepts must reflect situational conditions: contingency variables Contingency Variable (Z) Independent Variable (X) Dependent Variable (Y) In American Culture Boss Gives “Thumbs Up” Sign Understood as Complimenting In Iranian or Australian Cultures Understood as Insulting - “Up Yours!” There are few absolutes in organizational behavior. When making decisions you must always take into account situational factors that can change the relationship between two variables. For example, as seen in this chart one message from a boss in an American culture can mean a completely different thing in an another culture. It is always important to take context into account.

11 Challenges and Opportunities for OB
Responding to Economic Pressures Responding to Globalization Managing Workplace Diversity Improving Customer Service Improving People Skills Stimulating Innovation and Change Coping with “Temporariness” Working in Networked Organizations Helping Employees with Work-Life Conflicts Improving Ethical Behavior In the workplace today there are many challenges and opportunities in the area of Organizational Behavior. Understanding OB has never been more important for managers as organizations are changing at a much more rapid pace than historically seen.

12 Responding to Economic Pressures
Effective management is especially important during tough economic times. Employees look to their managers to provide security during the instability of a recession. During economic difficulties the need for effective managers is heightened. Anyone can manage during good times, it is much tougher to manager through economic struggles. Often when there are economic pressures managers are forced to make decisions based on resource constraints. These situations may include laying off employees, motivating employees when there are limited resources and encouraging employees when they are stressed about their futures.

13 Responding to Globalization
Increased foreign assignments Differing needs and aspirations in workforce Working with people from different cultures Domestic motivational techniques and managerial styles may not work Overseeing movement of jobs to countries with low-cost labor Organizations now exist in an environment with no national borders. As a result the manager’s job has changed. They need to have a broader perspective when making decisions. As foreign assignments increase you will need to be able to manage a workforce that is different than what you may be used to and may bring different needs, aspirations and attitudes to the workplace. You will also have individuals coming to work in your own country that come from different cultures, and you will need to find ways to accommodate their needs and help them assimilate to your workplace culture. You may also need to do the difficult task of moving jobs outside of your country to a country with lower labor costs. This is a difficult process logistically but also emotionally for the workers who will be losing their jobs.

14 Managing Workforce Diversity
organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, ethnicity, and sexual orientation As the borders are disappearing we are seeing more and more heterogeneity in the workplace. Managers today need to embrace diversity and find ways to manage it effectively. The changing demographics have shifted management philosophy in a way that recognizes and utilizes differences to create productivity, profitability and welcoming cultures.

15 Diversity Implications
“Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that ensure employee retention and greater productivity while, at the same time, not discriminating.” Managers must recognize differences and find ways to utilize those differences to improve organizational performance.

16 Improving Customer Service & People Skills
The majority of employees in developed nations work in service jobs and they must know how to please their customers. People skills are essential to succeed in today’s organizations. Most workers in developed nations will work in service-oriented jobs. It is critical to organizational success that workers improve their customer service and people skills.

17 Stimulating Innovation and Change
Flexibility Quality Improvement Staying Competitive Organizations must be innovative and able to change in order to succeed in the marketplace today. This includes a commitment to flexibility and quality improvement in order to stay competitive.

18 Temporariness Jobs are constantly changing
Skills need to be updated for workers to stay on target Workers need to be able to deal with change Employees need to be able to cope with flexibility, spontaneity and unpredictability In a constantly changing environment workers have to be able to handle change, keep their skills updated and be able to be flexible.

19 Working in Networked Organizations
Managers must adapt their skills and communication styles to succeed in an online environment As technology continues to become an integral part of organizational effectiveness workers will find that their communication styles and needs will change as well. Managers must stay on top of what is needed to motivate workers in this environment.

20 Helping Employees handle work-life conflict
The line between work and non work has blurred and managers are increasingly dealing with conflicts that arise between work and life away from work. Work and life away from work continue to become intertwined as with the rise of technological communication we are available 24/7. Managers must face the reality that people bring their life at home with them to the office, and they must find ways to help workers deal with the conflict that arises.

21 Thinking Positive Creating a positive work environment can be a competitive advantage Positive Organizational Scholarship (Positive OB): Examines how organizations develop human strengths, foster vitality and resilience, and unlock potential. Focus is on employee strengths, not their weaknesses. By creating a positive work environment many of the job factors listed earlier can improve (such as absenteeism and turnover). Positive Organizational Scholarship examines how organizations can focus on employee strengths to unlock potential.

22 Three Levels of OB Analysis
Chapters Chapters In Organizational Behavior (OB) we utilize the representation of the world as broken down into three levels. The first level of analysis we will look at is the Individual level. At this level we look at individuals’ behavior. Next, recognizing that individuals make up groups, we analyze how group behavior occurs. Finally, organizations are made up of groups of individuals, so we analyze the organization at a systems level. Chapters 2 - 7 Plan of the Book

23 Implications for Managers
OB helps with: Insights to improve people skills Valuing of workforce diversity Empowering people and creating a positive work environment Dealing with change in the workplace Coping in a world of temporariness Creating an ethically healthy work environment The OB Model is critical to your understanding of how organizations behave. In the remainder of this book we will be utilizing that model to look at behavior on an individual, group and organizational level.

24 Keep in Mind… OB’s goal is to understand and predict human behavior in organizations. Fundamental consistencies underlie behavior. It is more important than ever to learn OB concepts. Both managers and employees must learn to cope with temporariness. Keep in mind that the goal of OB is to understand and then to predict behavior so that we can improve organizational effectiveness. This assumes there is consistency in behavior and that we can systematically study it to develop patterns that will increase the accuracy of our predictions. It is more important now, then ever before, to learn OB concepts because we are in a rapidly changing environment.

25 Summary Defined Organizational Behavior (OB).
Show the value to OB of systematic study. Identified the major behavioral science disciplines that contribute to OB. Demonstrated how few absolutes apply in OB. Identified the major challenges and opportunities managers have in applying OB concepts. Identified the three levels of analysis in OB.

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