Module 1

The Basics of organizational Behavior & its Relation to Management

- OB: is the study of the behavior and attitudes of people in organizations. Applied discipline
- It focuses on human behavior and attitudes which contribute to the effectiveness and productivity of any
organization. + Competitive advantages for companies+ managerial skills+ proposed solutions to
behavioral problems in organizations.
- Concerned about organizational productivity and employee needs.
- OB is divided to 3 fields: individual (micro approach) ex. Performance, stress etc.., group and organization
(macro approach) ex organization design etc….
- Management: the process of planning, organizing, leading, and controlling the human, material and
financial resources of an organization in order to achieve the organization s goals.
- involves the technical and human components of organizational functioning for the productivity goals.
- It is professional discipline that is based on OB (applied discipline)
- There are 3 basic components on a manager s job and depending on his level in the hierarchy moving from
first level to high managers s level .: technical ( supervising and training ) , conceptual (representation ,
facilitation and decision making) and human ( collaboration and scanning) ( for higher level ).
- A manager without human component in his skills = ‘Poor people skills’.
- Manager s job consist on the concept: getting things done through people.
- the definition of manager s job is changing because: workforce is changing( values , skills , training and
employee empowerment), customer is changing(TQM is sever system, customer is asking for the best) and
organization is changing ( downsizing, capital flows , free trading).
- These reasons requires a manager who is creative, coaching integrating facilitative and empowering his
co-workers rather than ordering and supervising (old definition of manager s job).
-The SOBC Sequence, S = Situation (stimulates) ex environment around the employee light, job demands,
supervision etc.. , O = (organism) refers to the characteristics of the person including personality, needs,
attitudes, values and intentions, B person's (behavioral) responses or actions in the situation and C
(consequences)= outcomes associated with the behavioral responses.
- Values are enduring beliefs that a specific mode of conduct or end is personally or socially preferable to an
opposite. This is shaped during adolescence. It is called self-concept. It forms the basis for business behavior.
- Values can be instrumental or terminal: Instrumental values are the means to achieve goals by using acceptable
behaviors (courage, self control), Terminal values are the goals to be achieved (achievement, social status).
- Organizations are providing culture based values training to smooth the transitions for their managers who
receive global assignments.
- Employee needs are job satisfaction, adequate pay and fringe benefits and safe working conditions.
- Organizational productivity refers to the production or output of goods and services with the least resources. OB
focuses on the connection and satisfying between both needs.
- Personality is defined as a relatively permanent set of psychological characteristics that influence the
individual’s behavior.
- Locus of control refers to one’s beliefs about what cause outcomes in life, or the belief that personal action will
result in certain outcomes. Internals (More Motivated. Better Performers) see themselves as the cause of outcomes.
External are the opposite.
- The value of skill based compensation is very important for developing employees with an internal locus.
- Extroversion and introversion refer to the strength of one’s need for external sensory stimulation. Ext = The
need to obtain social stimulation from the environment Int= the need to avoid it.
- Managers should consider these effects as they match individuals with job characteristics.
- Machiavellism is the need to influence others to achieve one’s personal ends. ‘The end justifies the means’.
Machiavellian manipulations increase at the top of organizations.
- Socially acquired needs are the needs learned through personal contact with the social environment.
- The most important needs from the organizational perspective are: Achivement (Taking moderate risks by pursuing
challenging goals, Task activities and accomplishments are rewarding, regardless of the financial issue), Affiliation
(The desire to have & maintain a strong social support system, and to give and receive affection) and Power (It defines
behaviors oriented towards influencing others and searching for opportunities to gain influence and control).
- Power has two sides: Negative Side: The personalized need for power (trying to dominate others).Positive Side: The
socialized need for power which is an important managerial quality & associates with effectiveness.
- Job Satisfaction is a function of employee perceptions of the facets of the work setting, rewards, supervision, and job
demands. (work pay , work , colleagues, supervision)
- An attitude is a behavior acquired through experience, to respond to people, objects or organization in a
positive or negative way.
- 2 individual determinants of job satisfaction are: Years in Career and job expectations (The level of experienced
job satisfaction is determined by job challenge, job clarity, supervision and incentives).
- 4 organizational determinants of job satisfaction: Supervision: Considerate supervision supports employees’ self esteem
and self worth and Participative supervision has the effect of clarifying employees’ expectations. Job Challenge Creativity,
application of personal skills and risk taking ( it is good for ppl with high need of achievement).Job Clarity The extent to
which employees understand what they are to do. Incentives are very powerful tools for maintaining motivation and
performance.
- Extrinsic rewards are based on employee performance and effort ex, pay rises, promotions.
- Intrinsic rewards are those that the employee experiences internally ex. Feeling appreciated.
- The equity theory: Employees make comparisons about their rewards relative to their effort and performance levels
relative to other employees.
- There is an indirect relationship between performance and job satisfaction .Employee characteristics also interact with the
work situation to influence job satisfaction levels.
- Job Satisfaction Measures: interviews, JDI (Job description index), questionnaire.
- Organizational commitment is defined as the strength of an employee’s identification with the organization. It goes
beyond company loyalty.
- Waves of downsizings and mergers cause employees to doubt the value of their expressions of organizational
commitment.
- Job Involvement: It is defined as the degree to which employees identify with their job, participate in it and consider
being a key determinant of their self worth and activates beliefs that the job is a central component of one’s life
- Employees can have job involvement without being committed to the organization
- Ways to Raise Commitment & Involvement: Caring about employees’ welfare, more involvement in decision making,
Regular rewards (intrinsic) & support.