Organizational Behavior

Facilitator
KHALID HUSSAIN CHOHAN,
(M) Tamgha-i-Imtiaz

MBA (HR and Finance & Investment)

NUST Institute of Management Sciences

M.A (Economics)

Peshawar University
B.Sc. (Hons)- War Studies

Balochistan University Contact:0321-5178693

Introduction of Students

Organization

Organizations are social entities, That are goal directed, Are designed as deliberately structured and coordinated activity systems, And are linked to external environment.

Importance of Organizations
Bring together resources to achieve desired goals and
outcomes. Produce goods and services efficiently. Facilitate innovation. Use modern manufacturing and computer technology. Adapt to and influence changing environment. Create value for owners, customers and employees. Accommodate ongoing challenges of diversity, ethics, career patterns, and the motivation and coordination of employees.

Organizational Behavior
Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking a system approach . That is, it interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives.

Organizational Behavior
Studies management activities that promote employee
effectiveness investigates the complex nature of individual, group, and organizational processes Theory X managers assume that workers are lazy, irresponsible, and require constant supervision Theory Y managers assume employees want to work and control themselves Personalities Douglas McGregor

Organizational Behavior (cont.)

Key concepts
Promotes employee effectiveness through understanding of individual, group, and organizational processes Stresses relationships among employees, managers, and work performed Assumes employees want to work and can control themselves Increased participation, greater autonomy, individual challenge and initiative, and enriched jobs may increase participation Recognized the importance of developing human resources

Contributions

 The organization's base rests on management's philosophy,

Elements of Organizational Behavior

values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcome are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from.

What is Theory?
Theory is: a plan or scheme existing in

the mind only, but based on principles verifiable by experiment or observation

Definition of Organization Theory

Organization theory: is the set of
propositions (body of knowledge) stemming from a definable field of study which can be termed organizations science (Kast&Rosenzweig1970). The study of organizations: is an applied science because the resulting knowledge is relevent to problem solving or decision making in ongoing enterprises or institutions (Kast&Rosenzweig1970).

Definition of Organization Theory Cont..

It is the application of scientific
knowledge in engineering and other forms of technology that has brought such spectacular changes in the material context of our lives over the past century (Kast&Rosenzweig1970).

MACRO
THEORETICAL

MICRO

OT

OB

APPLIED

OD

HR

Enter Organizational Behavior

Organizational behavior (OB)
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 organizations effectiveness.

Complementing Intuition with Systematic Study

Intuition
Gut feelings about why I do what I do and what makes others tick.

Systematic study
Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. Provides a means to predict behaviors.

Contributing Disciplines to the OB Field

Psychology
The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

E X H I B I T 13 (contd)

Contributing Disciplines to the OB Field (contd)

Sociology
The study of people in relation to their fellow human beings.

E X H I B I T 13 (contd)

Contributing Disciplines to the OB Field (contd)

Social Psychology
An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

E X H I B I T 13 (contd)

Contributing Disciplines to the OB Field (contd)

Anthropology
The study of societies to learn about human beings and their activities.

E X H I B I T 13 (contd)

There Are Few Absolutes in OB

Contingency variables: "It Depends!!!"
Situational factors that make the main relationship between two variables change--e.g., the relationship may hold for one condition but not another. In Country 1

x x

May be related to

y y

In Country 2

May NOT be related to

Challenges and Opportunities for OB

Responding to Globalization
Increased foreign assignments Working with people from different cultures Coping with anti-capitalism backlash Overseeing movement of jobs to countries with low-cost labor Managing people during the war on terror. Embracing diversity Changing U.S. demographics Implications for managers Recognizing and responding to differences

Managing Workforce Diversity

Major Workforce Diversity Categories

Gender Disability Age Non-Christian Race Domestic Partners
E X H I B I T 14

National Origin

Challenges and Opportunities for OB (contd)

Improving Quality and Productivity Responding to the Labor Shortage
Changing work force demographics Fewer skilled laborers Early retirements and older workers Quality management (QM) Process reengineering

Improving Customer Service

Increased expectation of service quality Customer-responsive cultures

What Is Quality Management?

1. Intense focus on the customer. 2. Concern for continuous improvement. 3. Improvement in the quality of everything
the organization does.

4. Accurate measurement. 5. Empowerment of employees.

E X H I B I T 16

Challenges and Opportunity for OB (contd)

Improving People Skills Empowering People Stimulating Innovation and Change Coping with Temporariness Working in Networked Organizations Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior Managing People during the War on Terrorism

A Downside to Empowerment?

Basic OB Model, Stage I

Model
An abstraction of reality. A simplified representation of some real-world phenomenon.

E X H I B I T 1-6

The Dependent Variables

Dependent variable
A response that is affected by an independent variable (what organizational behavior researchers try to understand).

The Dependent Variables (contd)

Productivity A performance measure that includes effectiveness and efficiency.

Effectiveness Achievement of goals. Efficiency Meeting goals at a low cost.

The Dependent Variables (contd)

Absenteeism
The failure to report to work.

Turnover
The voluntary and involuntary permanent withdrawal from an organization.

The Dependent Variables (contd)

Deviant Workplace Behavior
Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.

The Dependent Variables (contd)

Organizational citizenship behavior (OCB)
Discretionary behavior that is not part of an employees formal job requirements, but that nevertheless promotes the effective functioning of the organization.

The Dependent Variables (contd)

Job satisfaction
A general attitude (not a behavior) toward ones job; a positive feeling of one's job resulting from an evaluation of its characteristics.

The Independent Variables

Independent variable
The presumed cause of some change in the dependent variable; major determinants of a dependent variable. Independent Variables Can Be

Individual-Level Variables

Group-Level Variables

Organization System-Level Variables

Basic OB Model, Stage II

E X H I B I T 1-7

Theory X/Y
Douglas MacGregor, 1960 Interaction between supervisors and

subordinates Organizations management approach is determined by supervisors attitudes and belifes about subordinates Beginning of human relations movement

Theory X
Role of Management
Management responsible for organizing elements of productive enterprise People need to be controlled and directed People would be passive otherwise

Human Nature
man works as little as possible lacks ambition, dislikes responsibility, prefers to be led inherently self-centered naturally resistant to change gullible, not very bright

Theory Y
Role of Management
Management responsible for organizing elements of productive enterprise Task of management is to arrange organizational conditions so that people can achieve their own goals best by directing their own efforts toward organizational objectives

Human Nature
People are not naturally passive, they have become so as a result of experience in organizations Motivation and capacity for assuming responsibility is inherent in people

Theory X and Theory Y

Theory X
childlike passive lazy resists work want to be led bare minimum

Theory Y

adults desire to achieve committed to work responsible lead, control their work want to do a good job

Models of Organizational Behavior

Autocratic Custodial Supportive Collegial

Autocratic Model
The basis of this model
is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal.

Custodial Model
The basis of this model
is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation.

Supportive Model
The basis of this model is
leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives.

Collegial Model
The basis of this model is
partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm.