School of Business,

University for Development Studies

HRM 201: ORGANIZATIONAL BEHAVIOR

BSc. Human Resource Management

200 Level

Department of Human Resource & Organizational Development

John Graham Antwi

 Course Policies

1) Grades will be assigned on the basis of the total points accumulated from
Attendance, assignments, seminars, mid-trimester exam and final
examination (See mode of assessment below).
2) It is the responsibility of the student to notify the Lecturer when an exam
or other course requirement will be missed. Make-ups are given in case of
documented proofs of illness or other emergency issues only.
3) Do your own work; plagiarism and cheating are unacceptable and will not
be tolerated.
4) Lateness to lectures and practical sessions will NOT be tolerated
5) Late submission of class assignments will be penalised.
6) All mobile phones are to be SWITCHED OFF or SWITCHED TO SILENT
MODE during lectures and practical sessions.
7) Additional information regarding policies as documented in the University
regulations to students also apply.

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 Course Description & Objective

 The field of Organizational Behavior (OB) is concerned with the study of what
people do in an organization, why they do it, and how that behavior affects the
performance of the organization. In this course, we will familiarize with general
concepts of organization and management from the behavioral sciences
perspective. We will explore factors that shape individuals, groups,
organizations and cultural dynamics, and how these factors relate to
administration and management in organizations.

 This course will provide a systematic understanding of organizational life,

spanning individual and group dynamics as created and lived by human beings
in the firm. Students will be taken through topics such as group dynamics,
individual differences, negotiation and conflict management, values,
perceptions, organizational change and culture as well as interpersonal
interactions.


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 Mode of Delivery

Presentation of course content will be through lectures; illustrations;

classroom discussions; and presentation.

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INTRODUCTORY SESSION

What Is
Organizational
Behavior

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 Learning Objectives

 Demonstrate the importance of interpersonal skills in

the workplace.
 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 managers’ challenges and opportunities in
applying OB concepts.
 Compare the three levels of analysis in this text’s OB
model.

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Importance of Interpersonal Skills in the Workplace

Interpersonal skills are important because…

 Good places to work’ have better financial performance.
 Better interpersonal skills result in lower turnover of quality employees
and higher quality applications for recruitment.
 There is a strong association between the quality of workplace
relationships and job satisfaction, stress, and turnover.
 It fosters social responsibility awareness.

Managers need a cadre of skills to create a productive workplace, including

technical and quantitative skills. However, leadership and communication
skills are critical to organizational success. When managers have solid
interpersonal skills, there are positive work outcomes for the organization.
These outcomes include lower turnover of strong employees, improved
recruitment pools for filling employment positions, and a better bottom line.

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 Manager’s Functions, Roles, And Skills
 Manager: Someone who gets things done through other people in organizations.
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.
 Planning, organizing, leading, and controlling.
 Mintzberg concluded that managers perform ten different, highly interrelated roles
or sets of behaviors attributable to their jobs.

A manager is someone in the organization who gets things done through the efforts of
other people. It is important to keep in mind that an organization is defined as a social
entity comprised of two or more people and can be found at any level within the
organization.

The work of managers revolves around four functions: planning, organizing, leading,
and controlling. When thinking about these functions, one realization comes forward:
that they all involve the interpersonal skills of communication for their effective
implementation.

Henry Mintzberg looked at management differently when he defined the 10 roles of

managers. As shown on the next slide, you will see that they again involve
implementation through the interpersonal skills of communication.

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Minztberg’s Managerial Roles

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 Manager’s Functions, Roles, and Skills
Management Skills

 What skills do managers need to effectively achieve their goals?

 Researchers have identified several skills that set successful managers apart
from their less effective counterparts. These include technical skills, human
skills, and conceptual skills.

 Technical Skills – the ability to apply specialized knowledge or expertise. All

jobs require some specialized expertise, and many people develop their
technical skills on the job (e.g., Technical Writing, Data Analysis, Cooking, etc.)

 Human Skills – the ability to work with, understand, and motivate other people,
both individually and in groups. (e.g., Communication, Empathy, Self-awareness,
…..)

 Conceptual Skills – the mental ability to analyze and diagnose complex

situations (e.g., Delegation, Team Building, Resource Management, etc.)

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 Effective Versus Successful Managerial Activities
Luthans and his associates found that all managers engage in four managerial
activities:
1. Traditional management
2. Communication
3. Human resource management
4. Networking

 Traditional management is decision making, planning, and controlling. The average

manager spent 32 percent of his or her time performing this activity.

 Communication involves exchanging routine information and processing paperwork.

The average manager spent 29 percent of his or her time performing this activity.

 Human resource management includes motivating, disciplining, managing conflict,

staffing, and training. The average manager spent 20 percent of his or her time
performing this activity.

 Networking is socializing, politicking, and interacting with outsiders. The average

manager spent 19 percent of his or her time performing this activity.

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 Effective Versus Successful Managerial Activities
Managers who were high performing in these activities were found to be fast-tracked
through organizational promotion.

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 Defining Organizational Behavior

Organizational behavior (OB) is 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.

More specifically, OB explores motivation; leader behavior and power;

interpersonal communication; group structure and processes; attitude
development and perception; change processes; conflict and negotiation; and
work design.

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 Complementing Intuition with Systemic Study
Many people say that the ideas and concepts of OB are common sense. However, the
systematic study of OB has come closer to finding ways to predict the behavior of
individuals and groups through an understanding of the situation and composition of the
people. Evidence-based management (EBM) complements systematic study by basing
managerial decisions on the best available scientific evidence.

Systematic Study of Behavior

Behavior generally is predictable if we know how the person perceived the situation
and what is important to him or her.

Evidence-Based Management (EBM)

Complements systematic study and Argues for managers to make decisions based
on evidence.

Intuition
Systematic study and EBM add to intuition, or those “gut feelings” about “why I do
what I do” and “what makes others tick.”

If we make all decisions with intuition or gut instinct, we’re likely working with
incomplete information.

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 Big Data
Background

 Big Data is extremely large data sets that may be analysed computationally to reveal
patterns, trends, and associations, especially relating to human behavior and
interactions.

 The use of Big Data for managerial practices is a relatively new area, but one that
holds convincing promise.

 Current Usage: The reasons for data analytics include predicting any event, detecting
how much risk is incurred at any time, and preventing catastrophes.

 New Trends: The use of Big Data for understanding, helping, and managing people is
relatively new but holds promise.

 Limitations: Use evidence as much as possible to inform your intuition and

experience.

The recent availability of “big data” shows promise for the field of OB, potentially
providing evidence that can be used to support intuition and experience.

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 Major Behavioral Science Disciplines That Contribute to OB

OB is a behavioral social science that merges concepts from several different social
sciences to apply specifically to the organizational setting at both the individual (or
micro) and group (or macro) levels.

The most significant social sciences are:

 Psychology,
 Social psychology,
 Sociology, and
 Anthropology

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 Major Behavioral Science Disciplines That Contribute to OB

This exhibit shows the contributions made by other disciplines to the development of organizational
behavior. Notice the predominant areas of psychology, social psychology, sociology, and anthropology.
Each of the disciplines has contributed specific concepts and theories to the study of OB and its
increasing applications.

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 Major Behavioral Science Disciplines That Contribute to OB

Psychology
Psychology focuses on the individual level by seeking to measure, explain, and sometimes
change behaviors in individuals. This area of study offers insights into such areas as
learning, training, decision making, and employee selection.

Social psychology
Social psychology moves beyond individual analysis to look at group behavior and how
individuals can influence one another. It blends together sociology and psychology and
looks primarily at change, communication, and group interactions.

Sociology
Sociology looks at the relationship between people and their environment. Sociologists’
main contribution to OB has been a better understanding of group behavior, particularly
in formal and complex organizations. Another key area that sociologists contribute to in
OB is organizational culture, a key factor in OB studies.

Anthropology
Anthropologists study societies to learn about human beings and their activities. They
help us understand the differences between different groups in terms of their values,
attitudes, and behaviors.

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 A Few Absolutes That Apply to OB
There are few, if any, simple and universal principles that explain organizational behavior.

Contingency variables
situational factors are variables that moderate the relationship between the
independent and dependent variables.

When making decisions, you must always consider the situational factors
that can change the relationship between two variables.

Every situation has the potential to have unseen factors or even known
factors that can change rapidly.

Opening your minds to detecting these changes and unseen factors, and to
being ready with optional responses, is essential to effective management.

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Challenges and Opportunities of OB Concepts

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 Challenges and Opportunities of OB Concepts

Responding to economic pressure

 During economic difficulties, the need for effective management is heightened.

Anyone can manage during good times; it is much tougher to manage effectively
through economic struggles. Thus, effective management is an asset in tough
economic times

 In bad economic times, resource constraints may force managers to make tough
decisions, such as whether to lay off employees. It can also be difficult to motivate
employees when resources are limited.

 In good times, understanding how to reward, satisfy, and retain employees is at a

premium

 Moreover, managers must be able to deal with employees who are stressed about
their futures. This requires good decision making, and systems for employees to cope.

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 Challenges and Opportunities of OB Concepts
Responding to globalization

 Globalization means that organizations now exist in an environment with no national

borders. As a result, the manager’s job has changed. Managers today 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 which may bring different needs,
aspirations, and attitudes to the workplace.

 You will also have individuals who come from different cultures coming to work in
your own country. You will need to find ways to accommodate their needs and help
them assimilate to your workplace culture.

 As more jobs move to countries with low-cost labor, managers will need to balance
the needs of their organizations with the needs of the countries in which they operate.

 In the new global village, managers need to understand the implications of differing
cultural and legal practices on their operations. Violating local regulations and
practices could have serious consequences for the organization.

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 Challenges and Opportunities of OB Concepts
As students of OB, we can investigate what factors lead employees to make various choices and how
their experiences affect their perceptions of their workplaces. In turn, this can help us predict
organizational outcomes. As shown in the OB Poll for example, the days when women stayed home
because it was expected are just a memory in some cultures, while in others, women still face
significant barriers to entry into the workplace.

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 Challenges and Opportunities of OB Concepts
Managing workforce diversity
Workforce diversity – organizations are becoming more heterogeneous in terms
of gender, age, race, ethnicity, sexual orientation, and inclusion of other
diverse groups.

 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
workplace cultures.

Improving customer service

 Many jobs today involve substantial interaction with customers. Managers can
increase the chance that these interactions will be successful by focusing on employee
attitudes and behavior.

 Companies need to develop customer-responsive cultures wherein employees are

friendly and courteous, accessible, knowledgeable, prompt with their responses, and
willing to do what is necessary to ensure that customers are satisfied.

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 Challenges and Opportunities of OB Concepts
Improving people skills

 Because organizations are comprised of people, organizations cannot achieve

desired outcomes without them.

 Therefore, the skills to manage people successfully are essential to the effectiveness
of anyone in a managerial or leadership role.

 OB provides the concepts and theories that help predict behavior to create a more
effective organization, accomplishing desired goals.

Working in networked organizations

 Networked organizations are proliferating. These are organizations that are spread
over geographic, time, or other boundaries and that are connected by technology.

 Managing and leading people who never see each other but who work together
requires a different set of management and leadership skills.

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 Challenges and Opportunities of OB Concepts
Using social media at work

 Social media is a difficult issue for today’s manager, presenting both a challenge and
an opportunity for OB.

 Policies on accessing social media at work.

When, where, and for what purpose.
Impact of social media on employee well-being.

Enhancing employee well-being at work

 Because of the expansion of networked business to global competition, time is no
longer a definable boundary of organizational activity and personnel responsibility.

 Managers and leaders of organizations are challenged to help employees find ways to
balance work and life roles to ensure they remain effective and viable members of the
team.

 Employees who feel as though they don’t get a break and who believe they must work
twenty-four hours a day can be less effective, suffering from burnout and
dissatisfaction.

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 Challenges and Opportunities of OB Concepts
Creating a positive work environment

Positive organizational scholarship is concerned with how organizations develop

human strength, foster vitality and resilience, and unlock potential.

 Creating a positive work environment has been found to be a basis for employee
satisfaction, increased productivity, and longevity of skilled personnel.

 Responsibility for positive work environments is not a part of traditional

management practice, but as the work environment has changed in terms of
characteristics and behaviors of younger generations, the focus on making work
a good place to be has become more important for success.

 Positive organizational scholarship studies what is “good” about organizations.

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 Challenges and Opportunities of OB Concepts
Improving ethical behavior

Ethical dilemmas and ethical choices are situations in which an individual is

required to define right and wrong conduct.

 Ethical dilemmas require managers to make decisions involving right and wrong
conduct. Managers and leaders must clearly define what constitutes appropriate,
ethical behavior by the organization and its people, and they must lead by
example.

 Good ethical behavior is not so easily defined. Increased scrutiny by society and
governmental entities has increased business concerns with ethical behavior.
Lapses in ethical behavior have resulted in everything ranging from public
sanctions against businesses to legal penalties against a firm and its managers.

 Organizations distribute codes of ethics to guide employees through ethical

dilemmas.

 Managers need to create an ethically healthy climate.

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 Three Levels of Analysis for OB Model
This unit proposes three types of variables—inputs, processes, and outcomes—at three levels of
analysis: individual, group, and organizational.

The basic OB model here proceeds from left to right, with inputs leading to processes and processes
leading to outcomes. Notice that the model also shows that outcomes can influence inputs in the
future.

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 Three Levels of Analysis for OB Model

 Inputs
 Variables like personality, group structure, and
organizational culture that lead to processes.

 Group structure, roles, and team responsibilities

are typically assigned immediately before or
after a group is formed.

 Organizational structure and culture change

over time. They are usually the result of years of
development and change as the organization
adapts to its environment and builds up customs
and norms.

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 Three Levels of Analysis for OB Model

 Processes
 Processes are actions that individuals, groups, and
organizations engage in as a result of inputs, and
that lead to certain outcomes.

 At the individual level, processes include

emotions and moods, motivation, perception, and
decision making.

 At the group level, they include communication,

leadership, power and politics, and conflict and
negotiation.

 Finally, at the organizational level, processes

include human resource management and change
practices.

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 Three Levels of Analysis for OB Model

 Outcomes
Scholars have emphasized individual-
level outcomes like attitudes and
satisfaction, task performance,
citizenship behavior, and withdrawal
behavior.

At the group level, cohesion and

functioning are the dependent variables.

Finally, at the organizational level, we

look at overall profitability and survival.

Because these outcomes will be covered

in all of the chapters, we’ll briefly
discuss each of them on the following
slides, so you can understand what the
“goal” of OB will be.

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 Outcome Variables

• Attitudes and stress

• Employee attitudes are the evaluations
employees make, ranging from positive to
negative, about objects, people, or events.

• Stress is an unpleasant psychological process that

occurs in response to environmental pressures.

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 Outcome Variables

• Task performance
• The combination of effectiveness and efficiency at
doing your core job tasks is a reflection of your
level of task performance.

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 Outcome Variables

• Organizational citizenship behavior

• The discretionary behavior that is not part of an
employee’s formal job requirements, and that
contributes to the psychological and social
environment of the workplace, is called
organizational citizenship behavior.

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 Outcome Variables

• Withdrawal behavior
• Withdrawal behavior is the set of actions that employees take to
separate themselves from the organization.

• Employee withdrawal can have a very negative effect on an

organization. The cost of employee turnover alone has been
estimated to run into the thousands of dollars, even for entry-
level positions.

• Absenteeism also costs organizations significant amounts of

money and time every year. For instance, a recent survey found
the average direct cost to U.S. employers of unscheduled absences
is 8.7 percent of payroll.

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 Outcome Variables

• Group cohesion
• Group cohesion is the extent to which members of a group support and
validate one another at work.

• Group functioning
• Group functioning refers to the quantity and quality of a group’s work output.

• When employees trust one another, seek common goals, and work together to
achieve these common goals, the group is cohesive.

• Conversely, when employees are divided among themselves in terms of what

they want to achieve and have little loyalty to one another, the group is not
cohesive.

• And the greater the group’s cohesion, the greater the affect of group
functioning that leads to effective outcomes and satisfying impacts on group
members.

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 Outcome Variables

• Productivity
• An organization is productive if it achieves its
goals by transforming inputs into outputs at the
lowest cost. This requires both effectiveness and
efficiency.

• Survival
• The final outcome is organizational survival,
which is simply evidence that the organization is
able to exist and grow over the long term.

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OB Levels

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 Implications for Managers

• Resist the inclination to rely on generalizations; some

provide valid insights into human behavior, but many
are erroneous.

• Use metrics and situational variables rather than

“hunches” to explain cause-and-effect relationships.

• Work on your interpersonal skills to increase your

leadership potential.

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 Implications for Managers

• Improve your technical skills and conceptual skills

through training and staying current with OB trends
like “big data”.

• OB can improve your employees’ work quality and

productivity by showing you how to empower your
employees, design and implement change programs,
improve customer service, and help your employees
balance work-life conflicts.

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