An Over View Of

Organizational Behavior

Chapter 1
 In this Chapter
• What is organizational behavior?
• The three basic units of analysis in OB
• Replacing intuition with systematic study
• The characteristics of OB
• The development of OB
• Contributing disciplines to OB
• Management and OB in the 21st century
• Organization as a system
 What is Organization?
• A group of two or more people working
together to achieve some common
objectives.
• a collection of people working together
under a defined structure for the purpose of
achieving predetermined outcomes through
the use of financial, human, and material
resources.
 What is Behavior ?
• Behavior is the way in which an animal or
person responds to a situation;
• Behavior refers to
– what people do in the organization,
– what their attitudes are,
– how they perform.
What is organizational behavior?
• is the study of behavior in organizations
• a field of study that investigates the impact
that individuals, groups and organizational
structure have on behavior within the
organization, for the purpose of applying
such knowledge towards improving an
organizational effectiveness”.
What is organizational behavior?
• Key Points
– first organizational behavior is an investigative
study of individuals and groups,
– second, the impact of organizational structure
on human behavior and
– third, the application of knowledge to achieve
organizational effectiveness.
What is organizational behavior?
• The study of organizational behavior
embraces an understanding of:
– The behavior of people;
– The process of management;
– The organizational context in which the process
of management takes place;
– Organizational processes and the execution of
work; and
– Interactions with the external environment of
which the organization is part.
What is organizational behavior?
• Generally, OB provides a set of tools that
allow:
– people to understand, analyze, and describe
behavior in organizations; and
– managers to improve, enhance, or change work
behaviors so that individuals, groups, and the
whole organization can achieve their goals.
The 3 basic units of analysis in OB
• the individual
• group behavior and
• organization structure and job design.
The 3 basic units of analysis in OB

I. The Individual
– in order to understand organizations, it is
necessary to understand people, particularly
from the perspective of individual
organizational member.
– Much of what we know about individuals is
drawn from the discipline of psychology,
The 3 basic units of analysis in OB
II. Group Behavior
– A second level of analysis focus upon the interactions of
people as they work in committees, teams, groups, units,
or departments.
• How do people work together in groups?
• What factors determine whether a group will be
cohesive and productive, as opposed to fragmented
and unproductive?
• How does leadership influence group members and
their ability to work together co-operatively and
productively?
– This level of analysis draws in particular on theories
from social psychology.
The 3 basic units of analysis in OB
III. Organizational Structure and Job
Design
• The 3rd level of analysis has to do with the
way
– organizations are formally structured and
– in which jobs are designed.
The 3 basic units of analysis in OB
III. Organizational Structure and Job Design
• Concern at this level of analysis is with the
relationship between two organization & its
environment,
• and emphasis is placed upon understanding how
organization structure & job design influence
effectiveness
• an understanding of organizational design must
characterize and influence organizational
behavior
 Characteristics of OB
1. Organizations are composed of
individuals and groups
2. Organizations are oriented toward the
achievement of goals
3. Organizations need employees’
specialization and coordination in order
to accomplish their goals
 The development of OB
• organizational behavior emerged as a
distinct field around 1940s.
• four significant Eras; have paved the way
for the field of organizational behavior.
– pre-scientific,
– classical,
– behavioral and
– modern
 The development of OB
1 The pre-scientific Era (pre1000-1880)
• The practice of management can be traced
to ancient civilizations
• even though, managers during the pre-
scientific era did not have formal education
and training in proven management
methods, they accomplished amazing
things.
 The development of OB
2) The classical Era(1980-1930)
• The classical management theory developed
during the Industrial Revolution when new
problems related to the factory system began to
appear.
• During this time, the first theory of management
began to evolve.
• Two major thrusts were
– administrative theory and
– scientific management.
 The development of OB
• the classical scientific school, which focused on the
manufacturing environment and getting work
done on the factory floor.
• the classical administrative school, which
emphasized the flow of information and how
organizations should operate.
 The development of OB
• scientific management is the kind of management
which conducts a business or affairs by standards
established by factors or truths gained through
systematic observation, experiment or reasoning.
• Productivity
• Fredrick Taylor created it … “father of scientific
management
• time and task study,
– standardization of tools and procedures,
– development of piece rate incentive schemes and
– systematic selection and training.
 The development of OB
• Administrative theory: Also called the universal
process school of management.
• Henry Fayol the French industrialist.
• Fayol divided the manager’s job in to five
functions; planning, organizing, command,
coordination and control.
• He then recommended 14 universal principles of
management.
• Fayol viewed as potentially disruptive factor to be
closely controlled by management.
 Fayol’s 14 Principles
1. Specialization of labor • Centralization
2. Authority • Scalar chain (line of
3. Discipline authority)
4. Unity of command • Order
5. Unity of direction • Equity
6. Subordination of • Personnel tenure
individual interests • Initiative
7. Remuneration • Esprit de corps
 The development of OB
3) The behavioral or Neo-classical Era (1930-1960)
• A significant landmark in the evolution of
managing and understanding the behavior of
people in the behavioral Era was the outcomes of
the human relation movement during the 1930s.
• The term human-relation refers to the manner in
which managers interact with subordinates.
 The development of OB
• A unique combination of factors fostered the
human relation movement during the 1930s.
– collective bargaining
– attention for the ‘human’ factors
 The development of OB
4) The Modern Era (1960 onwards)
• Douglas McGregor,
• the total quality management movement, and
• the contingency approach to management
 Contributing disciplines to OB
• OB is an applied behavioral science that is built
upon contributions from a number of behavioral
disciplines.
–  Psychology
–  Sociology
–  Political science
–  Social psychology
–  Anthropology
 Contributing disciplines to OB
Psychology:
• is an applied science, which attempts to explain
human behavior in a particular situation and
predicts actions of individuals.
• Psychologists have been able to modify individual
behavior largely with the help of various studies.
 Contributing disciplines to OB
Psychology:
• It has contributed towards various theories on
– learning,
– motivation,
– personality,
– training and development,
– theories on individual decision making,
– leadership,
– job satisfaction,
– performance appraisal,
– attitude, ego state, job design, work stress and conflict
management.
• Studies of these theories can improve personal skills, bring
change in attitude and develop positive approach to
organizational systems.
 Contributing disciplines to OB
Sociology:
• Science of Sociology studies the impact of culture
on group behavior and
• has contributed to a large extent to the field of
– group-dynamics,
– roles that individual plays in the organization,
communication,
– norms, status, power, conflict management,
– formal organization theory, group processes and
– group decision-making.
 Contributing disciplines to OB
Political science:
• the branch of knowledge concerned with political
activity and behavior.
• Stability of government at national level is one
major factor for promotion of international
business, financial investments, expansion and
employment.
• Various government rules and regulations play a
very decisive role in growth of the organization.
• All organizations have to abide by the rules of the
government of the day.
 Contributing disciplines to OB
Social psychology:
• Working organizations are formal assembly of
people who are assigned specific jobs and play a
vital role in formulating human behavior.
• It is a subject where concept of psychology and
sociology are blend to achieve better human
behavior in organization.
• The field has contributed to manage change,
group decision-making, communication and
ability of people in the organization, to maintain
social norms.
 Contributing disciplines to OB
Social psychology:
• the branch of psychology concerned with social
interactions.
• is an area within psychology, blending concepts from both
psychology and sociology.
• It focuses on the influence of people on one another.
• Working organizations are formal assembly of people who
are assigned specific jobs and play a vital role in
formulating human behavior.
• It is a subject where concept of psychology and sociology
are blend to achieve better human behavior in
organization.
• The field has contributed to manage change, group
decision-making, communication and ability of people in
 Contributing disciplines to OB
Anthropology:
• It is a field of study relating to human activities in various
cultural and environmental frameworks.
• It understands difference in behavior based on value
system of different cultures of various countries.
• The study is more relevant to organizational behavior
today due to globalization, mergers and acquisitions of
various industries.
• The advent of the 21st century has created a situation
wherein cross-cultural people will have to work in one
particular industry.
 Contributing disciplines to OB
Anthropology:
• Managers will have to deal with individuals and groups
belonging to different ethnic cultures and exercise
adequate control or even channelize behavior in the
desired direction by appropriately manipulating various
cultural factors.
 Management and OB in the 21st century
• Today’s workplace is indeed undergoing immense and
permanent changes.
• The 21st century environment requires new-taking & new
ways of managing.
• The nature of work is changing so rapidly that rigid job
structures impede the work to be done now, and that may
drastically change the following year, month, or even week.
 Management and OB in the 21st century
There is a revolution going on in the workplace such as
• Knowledge is replacing infrastructure.
• Values and Self-leadership are replacing direct supervision
i.e. command and control supervisions.
• Networks are replacing hierarchies.
• Virtual teams are replacing committees.
• Companies are looking for employees with emotional
intelligence, not just technical smarts.
• Globalization has become the mantra of corporate
survival.
 Management and OB in the 21st century
There is a revolution going on in the workplace such as
• Co-workers are not down the hall; they are at the other
end of internet connections. Chances are they live
somewhere else on the planet.
• Organizations have been “re-engineered” for greater
speed, efficiency & flexibility.
• Teams are pushing aside the individual as the primary
building block of organizations.
• Command and control management is giving ways to
participative management & empowerment.
 Management and OB in the 21st century
There is a revolution going on in the workplace such as
• Ego centered leaders are being replaced by customer
centered leaders.
• Employees increasingly are being viewed as internal
customers.
• managerial shifting
 Management and OB in the 21st century
The following areas are the area in which the managers’ of modern
organizations are being encountered challenges
• Improving Quality and Productivity
• Improving people skills
• Managing work force diversity
• Responding to globalization
• Empowering people
• Stimulating innovation and change
• Coping with “Temporariness” – today, change is an ongoing activity
for most managers. So, workers need to continually update their
knowledge and skills to perform new job requirements.
• Declining employee loyalty
• Improving ethical behavior
 Management and OB in the 21st century
The following areas are the area in which the managers’ of modern
organizations are being encountered challenges
• Improving Quality and Productivity
• Improving people skills
• Managing work force diversity
• Responding to globalization
• Empowering people
• Stimulating innovation and change
• Coping with “Temporariness” – today, change is an ongoing activity
for most managers. So, workers need to continually update their
knowledge and skills to perform new job requirements.
• Declining employee loyalty
• Improving ethical behavior
 Components of Organizational Behavior

Individuals in Organizations
• Individual Differences: Personality and Ability
• Work Values, Attitudes, Moods, and Emotions
• Perception, Attribution, and the Management of Diversity
• Learning and Creativity
• The Nature of Work Motivation
• Creating a Motivating Work Setting
• Pay, Careers, and Changing Employment Relationships
• Managing Stress and Work–Life Balance
 Components of Organizational Behavior

Groups and Team Processes

Organizational Processes
• Organizational Design and Structure
• Organizational Culture and Ethical Behavior
• Organizational Change and Development
Thank You!