(Source: shorturl.
at/iTX12)
Learning Objectives:
a. Identify the different environmental
forces that redesigned recently by
most organizations and
b. Create an analysis of the importance
of Organizational Behavior.
(Source: shorturl.at/ahPQX)
“Followers think and talk
about their problems....
Leaders think and talk about
the solutions.” - Brian Tracy
Learning Guide:
a. Environmental Forces
Redesigning Management
Practices
b. Foundations and Basic
Assumptions of OB
c. Importance of OB
d. Challenges of OB
 ORGANIZATIONAL BEHAVIOR

Organizational behavior (OB) is the academic study of the ways

people act within groups. Its principles are applied primarily in attempts to
make businesses operate more effectively.
The study of organizational behavior includes areas of research
dedicated to improving job performance, increasing job satisfaction,
promoting innovation, and encouraging leadership. Each has its own
recommended actions, such as reorganizing groups, modifying
compensation structures, or changing methods of performance
evaluation.

Environmental Forces Redesigning Management Practices

Change is constant and we need to embrace it. Leaders in the
organization should know how to instruct people on what to do and hot to
accomplish it. Intelligence, passion, strong work ethics, teamwork and heat
to people are qualities of ideal working atmosphere.
8 Major forces have challenged an increasing number of firms to channel
their management talents attain goals and objectives through knowledge
creativity:
1. Power of Human Resources – capability to get things completed in
the manner one wants them to be done.
2. Globalization – interconnections among nations in transportation,
distribution, communication and economic networks.
3. Multiculturalism (Cultural Diversity) – huge assortment of differences
produced by cultural trends like history, characteristics, economic,
conditions, personality characteristics, language, norms and more
practices.
4. Rapidity of Change – the rate at which change occurs in
technology, demographics, globalization, and new products and
services.
5. Psychological Contract – the unwritten set of expectations of the
employment relationship which details what each party looks
forward to give and receive.
6. Technology -process that transforms raw materials or intellectual
capital into products and services.
7. Service Economy – a field of service like transportation,
communication, wholesale and retail, finance, insurance, real
estate and government is growing.
 8. Teamwork – in order to meet their goals, organizations focuses on
teamwork since it provides better approach to quality goods and
services.
The environmental forces provide the challenges to leaders. Failure to
perform and deal these forces shall give room to dissatisfied, poor
performance, poor morale, conflict, stress, poor judgment and unhealthy
environment.
Foundations and Basic Assumptions of Organizational Behavior
An organization is a collection of individuals forming a synchronized
system of specialized activities for the rationale of realizing certain goals
over some extended period of time.
Several concepts that revolve around the individual in organizational
behavior are:
1. Uniqueness of an Individual – no two persons react to the same
stimulus. Individuality of a person in terms of trait, intelligence,
physique, body and verbal language.
2. A Total Person – the organization should accept the totality of the
person being hired in terms of attitude, aptitude, skill, knowledge and
emotions.
3. Attribution – involves knowing the reason for his abnormal looks and
overt reactions to normal.
4. Ethics and Dignity – Employees deserve humane treatment.
Managers should treat people with differently since they are the
higher order in the universe and be treated with respect and dignity.
5. Organizations as Social Systems - Organizations are social systems in
that each organization is made up of people, and has a defined
purpose that is subscribed by the individuals that comprise the
organization. Each organization depends on norms and rules as
enforcement mechanisms to restrain the individual behavior of the
people (actors).
6. Mutuality of Interest – individual tries to do his best in the workplace.
The organization should give him opportunities. Employees should
have a supporting mechanism in professional and personal growth,
while organization should be helped in reaching organizational
goals. To avoid mutual interests eroded, conflict must not exist.
7. Holistic benefit – the mentioned concepts when practiced within
groups create synergy that brings holistic advantage.
Importance of Organizational Behavior
Whatever career path an individual has chosen in the workplace,
OB plays significant role in his performance and effectively work.
If correctly learned, OB can be beneficial in the following:
 1. Effective confronting – proactive thinkers approach troubles and
bottlenecks efficiently and working without pressures in dealing
difficult situations.
2. OB is a Science – probabilistic in nature as it validates facts. The
person can make decision based on probability of success.
3. OB Enhances Conviction – provide confidence in accomplishing
things. A person with OB knowledge even under pressure encourage
others in a better way.
4. Improves Perceptual Skills – self-perception and perception of others
in terms of personality, attitude, transactional analysis, conflict
resolution and negotiation, can become a person successful.
5. Motivate People – knowledge in motivation theory and its
application to delegate authority and inspire others.
6. Better Employee-Employer Relations – conflict resolution and
negotiation can help achieve better organizational relation.
7. Consumer Behavior – extended to understanding consumers better.
Improved relation to suppliers and customers.
8. Expert in People Skills – expected that leaders must be skillful in
dealing with people.
Challenges of Organizational Behavior
Main challenges and opportunities of organizational behavior are;
a. Improving Peoples’ Skills.
b. Improving Quality and Productivity.
c. Total Quality Management (TQM).
d. Managing Workforce Diversity.
e. Responding to Globalization.
f. Empowering People.
g. Coping with Temporariness.
h. Stimulating Innovation and Change.
i. Emergence of E-Organization & E-Commerce.
j. Improving Ethical Behavior.
k. Improving Customer Service.
l. Helping Employees Balance Work-Life Conflicts.
m. Flattening World.
Challenges of OB
Organizational behavior is the culture of the organization. It involves
employees interacting with one another and how they feel in the
workplace. Most of the companies faces overcoming of cultural and
ethnic differences, improving productivity, hiring, and helping employees
to find proper level of a work life balance.
Anchors of OB
1. Multidisciplinary Anchor – developed from diversity of knowledge of
other fields not just from its own isolated research foundation.
2. Systematic Research Anchor – Ob is based on systematic research
which consists of forming research questions, data collection and
hypothesis testing. The result is used in decision making.
3. Contingency Anchor – recognizes that there is no single solution is
best for all situations. It is important that when confronted with
problems, understanding and diagnosing the situation and choosing
the appropriate strategy must be done.
4. Mutli-Levels of Analysis Anchors – concerns the individual, team and
organization. Team level includes team dynamics, decision-making,
power, politics, conflict and leadership. The OB level, focus are on
working relationship, organizational interaction and working
environment.