FUNDAMENTALS OF

ORGANIZATIONAL BEHAVIOR
 INTRODUCTION

 The study of organizations and of the collection

of people within them together comprises the
field of organizational behavior.

 Organizational behavior (OB) is the study of

human behavior in organizational settings, the
interface between human behavior and the
organization, and the organization itself.
 What is Organizational Behavior?

OB is the study and application of

knowledge about how people act within
the organization.

It is a human tool for human benefit .

Premises

 Organizations are complex systems.

 Need to understand how the system operates esp. in a sociotechnical system –
humanity and technology.

 Human behavior in organizations is sometimes unpredictable

 Behaviors may come from deep-seated needs, lifetime experiences and personal
value systems

 Human behavior in an organization can be partially

understood
 Applying the frameworks of behavioral science, management and other disciplines

 There are no perfect solutions to organizational problems

 Increase the understanding and skills – work relationships can substantially upgraded

 We do not have the luxury of not working with or relate to

other people.
 Learn human behavior.
 Explore how to improve the interpersonal skills
 Begin to manage ones relationships with others at work.
 Understanding human behavior

 Definition
 OB
 systematic study and careful application of knowledge
about how people – as individuals and as groups – act
within organizations.
 Strive to identify ways in which people can act more
efficiently
 A large number of research studies and conceptual
developments constantly adds up to its knowledge base.
 An applied science
 Provides useful set of tools at many levels of analysis
from individual, interpersonal relations, intergroup, and
whole system
 Goals of OB

 Describe
 how people behave under a variety of conditions.
 Understand
 Why people behave as they do.
 Probe for underlying explanations
 Predict
 Predict future employee behavior (tardiness, productive &
unproductive etc.)
 Provide preventive actions
 Control
 At least partially and develop some human activity at work.
Key forces – complex set of forces affects the nature of organizations
 Managers need to remember that organizational
behavior is a tool for human benefit
A complex set of forces affects the
nature of organizations today.
It can be classified into four areas:
 People
 Structure
 Technology
 Environment
 Key Forces

• People
Make up the internal social system of an organization
Melting pot of diversity – talents, background and perspectives to their jobs
Managers need to be tuned in to these diverse patterns and trends.
 Changes in the labor force
• Decline in work ethic and rise in emphasis on leisure, self
expression, fulfillment and personal growth
• Decreased automatic acceptance of authority and increase in the desire
for participation, autonomy and control.
• Skills become obsolete due to rapid technological advances – retrain or
be displaced
• Security needs are prime concern and loyalty diminishes because of
downsizing and outsourcing
• Absence of meaningful salary growth has placed renewed emphasis on
money as a motivator
Companies address diversity by becoming compassionate and caring,
building pride without de-valuing others, empowering some without
exploiting, demonstrating openness, confidence, authentic compassion and
vulnerability.
• Structure
 Defines the formal relationship and use of people in organizations.
 Effective coordination of work
 Create complex problems of cooperation, negotiation and decision making
• Technology
 Provides the resources with which people work and affects the tasks
they perform
 Benefit of technology – does more and better work however it restricts people in
various ways
 OB’s challenge is to maintain the delicate balance between technical and social
systems.
• Environment
 Internal or external
 Organizations are part of a larger system and factors influence them like:
 Citizens expect organizations to be socially responsible
 New products and competition for customers come from around the
globe (globalization)
 The direct impact of unions diminishes
 Dramatic pace of change in society.
 The external environment influences the attitudes of people, affects working
conditions, and provides competitions for resources and power.
 Positive Characteristics of OB

• Interdisciplinary in nature – integrates behavioral

sciences, social sciences and other disciplines
• Emerging knowledge, theories, models and
conceptual frameworks.
• Increasing acceptance of theory and research by practicing
managers.
 Willingness of managers to explore new ideas
 More receptive to new models
 Support related research
 Hungrily experiment with new ideas
 Contributing Disciplines to the OB Field

 Psychology
 Sociology
 Social Psychology
 Anthropology
 Political Science
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
(cont’d)
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
 Fundamental Concepts of OB
 Nature of people
 Individual differences
 Nature vs.nurture
 Perception
 The unique way in which each person sees, organizes and interprets things.
 Selective perception cause misinterpretation
 A whole person
 We employ the whole person not just their brains or skills
 Ergonomics is the science of fitting workplace conditions and job demands
to the capabilities of the working population
 Motivated behavior
 A path towards increased need fulfillment is a better approach
 Desire for involvement
 Hunger for a change to chare what they know and to learn from the
experience.
 Organizations need to provide opportunities for meaningful involvement –
employee empowerment
 Value of the person
 Worth before the word
 meal before the message
 they want to be treated differently from other factors of production
 Nature of organization
Social systems
Social systems or social structure in general refer to entities or groups
in definite relation to each other, to relatively enduring patterns of
behavior and relationship within social systems, or to social institutions
and norms becoming embedded into social systems in such a way that
they shape the behavior of actors within those social systems. Social
systems can be said to be the patterns of behavior of a group of people
possessing similar characteristics due to their existence in same society.
Formal and informal social systems
The idea of a social system provides a framework for analyzing
organizational behavior issues. It helps make OB problems
understandable and manageable
Mutual interest
Symbiotic relationship between organizations and people
Provides a superordinate goal – one that can attained only through
the integral effort of individuals and their employers.
Ethics
Treatment of employees in an ethical fashion
Establish code of ethics, publicized statements of wthical values, provide
ethics trainings, reward employees for notable ethical behaviors, set up
internal procedure to handle misconduct.
Models of Organizational Behavior
Model of OB
 Social Systems and Organizational
Culture

 A social system is a complex set of human

relationships interacting in many ways. Within an
organization, the social system includes all the
people in it and their relationships to each other and
to the outside world. The behavior of one member
can have an impact, either directly or indirectly, on
the behavior of others. Also, the social system does
not have boundaries...it exchanges goods, ideas,
culture, etc. with the environment around it.
 Culture is the conventional behavior of an
organization that encompasses beliefs, customs,
knowledge, and practices. It influences human
behavior, even though it seldom enters into their
conscious thought. People depend on culture as it
gives them stability, security, understanding, and
the ability to respond to a given situation. This is
why people fear change. They fear the system will
become unstable, their security will be lost, they
will not understand the new process, and they will
not know how to respond to the new situations.
HOW AN ORGANIZATION's CULTURE CAN BE
KNOWN ?

Organization culture can be a set of key values , assumptions,

understandings and norms that is shared by members of an
organization.
Organization values are fundamental beliefs that an organization
considers to be important , that are relatively stable over time,
and they have an impact on employees behaviors and attitudes.
Organization Norms are shared standards that define what
behaviors are acceptable and desirable within organization.
Shared assumptions are about how things are done
in an organization.
Understandings are coping with internal / external
problems uniformly.
 LEVELS OF ORGANIZATION CULTURE

LEVEL 1---VISIBLE, that can be seen at the

surface level
-dress codes
-office layout
-symbols
-slogans
-ceremonies[ monthly / annual
awards/long service/birthdays etc.
etc
 LEVEL 2- INVISIBLE , that can be cannot be seen
but only felt.
-stories about people performance
-symbols [ flag, trademark, logos, etc]
-corporate mission statements
-recruitment/selection [ methods used]
-fairness in treatment
-social equality
-risk taking in business
deals -formality in approach
-discipline
-autonomy for departments
-responsiveness to communication
-empowerment of staff.
 Approaches to OB

 Human Resources (Supportive) – Employee

growth and development are encouraged and
supported.
 Contingency – Different managerial behaviors are
required by different environments for effectiveness.
 Results-oriented – outcomes of organizational
behavior programs are assessed in terms of
their efficiency.
 Systems – all parts of an organization interact in
a complex relationship.
 Limitations of OB

 People who lack system understanding and become

superficially infatuated with OB may develop Behavioral
bias – narrow viewpoint that emphasized satisfying
employee experiences while overlooking the broader
system of the organization in relation to all its publics.
 The law of diminishing return –
the tendency for a continuing application of effort or skill toward
a particular project or goal to decline in effectiveness after a
certain level of result has been achieved.
Overemphasis on as valid organizational behavior practice may
produce negative results
At some point increase of a desirable practice produce declining
returns, eventually negative returns
 Unethical manipulation of people
 Knowledge and techniques can be used to manipulate
people unethically
 People who lack ethical values could use people in
unethical ways.
 The philosophy of OB is supportive and oriented toward
human resources. Seeks to improve human environment
and help people grow toward their potential.
 Ethical leadership principles such as: social
responsibility, open communication, cost-benefit analysis.
CHALLENGES FOR OB
 Globalization to Respond

 Managing Diversity

 Improving Quality and Productivity

 Improving Customer Service

 Improving People Skills

 Stimulating Innovation and Chang e

 Coping with Temporariness

 Working in network organization

 Helping employees balance work-life conflicts

 Creating Positive work environment

 Improving ethical behaviour

 Continuing Challenges

 Seeking Quick Fixes

 Are we tempted when pressured to seed rapid solutions?
 Varying Environments
 Can the ideas that have been developed and tested endure
with equal success under new conditions?
 Definition Confusion
 Considered as relatively new discipline, can OB in
clearly define its field of student and application?
The organization is above all social. It is
people.”
Peter Drucker