 WEEK 1 & 2 - INTRODUCTION TO ORGANIZATIONAL / BEHAVIOUR .

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LEARNING OUTCOMES: After studying this chapter, the students should be able to: ' Define
organizational behaviour. ‘Explain the goals and forces or elements of organizational behaviour.
‘Understand the evolution and fundamental concepts of organizational behaviour. ‘Understand the major
approaches of organizational behaviour Discuss how organizational behaviour responds to globalization,
diversification and technological advancement.

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1.0 INTRODUCTION ' An organization is an organized body of people with a particular purpose and the
people themselves are regarded as the most important organizational asset. ‘Organizational behaviour (0B)
studies how interaction occurs between people in a work setting, ' This will then enable the managers to
improve job satisfaction and stimulate innovation and creativity, thus creating a dynamic working climate.

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1.1 DEFINITION OF ORGANIZATION ' Organization can be define from three significant aspects: 2, 3,
Social inventions — it is basically referring to the gathering of people that make up the organization.
Accomplishing goals — primary goal of organizations is to money, and yet the goal is inter-related with
other goals such as personal goals of an individual associated with the organization. Group effort this is to
overcome the limitations of individual in terms of physical and intellectual.

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1.1 DEFINITION OF ORGANIZATION ' Organizational behaviour is concerned with people's thoughts,
feelings, emotions and actions in setting up a work task. The management of organizational behaviour is
central to the management task — a task that involves the capacity to 'understand' the behaviour patterns of
individuals, groups, and organizations, to predict' what behavioural responses will be elicited by various
managerial actions and finally to use this understanding and these predictions to achieve control. Thus,
organizational behaviour applies the knowledge gained about individuals, groups and the effect of
structure on organizational members' behaviour to make organizations more effective.

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1.1 DEFINITION OF ORGANIZATION Goals of organizational behaviour are as follows: Goals Describe
Understand Predict Control Discretion of Goals Describe systematically how people behave under a
variety of conditions. Understand the reasons behind the employees' actions in regards to certain problems
or issues. 0B studies are to predict which employees might be dedicated and productive, and which
employees might cause problems. Managers are to make an impact on employee behaviour, skill
development, team effort and productivity. This is to ensure the organization can pursue the goals and
objectives.

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1.1 DEFINITION OF ORGANIZATION ' Importance of organizational behaviour are as follows: 2,

Developing interpersonal skills — Organizational behaviour exposes managers to highly needed
interpersonal skills, such as leading, motivating, analytical ability, decision-making skills and many others.
Personal development and understanding others — being able to understand others lead to personal
development for the individual, and can also lead to enhanced self-knowledge and self- insight.
Understanding others will also assist managers in making better decisions and achieving outcomes.

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1.1 DEFINITION OF ORGANIZATION 3, 4, achieving organizational and individual effectiveness from

relationships — Help managers in becoming more people-oriented, enabling them to use their wisdom and
understanding to improve interpersonal communication between organization members, to resolve
conflicts and to build effective teams in the workplace. Sharpening and refining our decisions and actions
—0B challenge us to revisit generally accepted ideas that may actually be only partially true.

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1.1 DEFINITION OF ORGANIZATION ' Forces of organizational behaviour refers to the elements in
which the organization relies on as it affecting the organizational day-to- day management. Those elements
are: 2, — human organization changes every day and people are the living, thinking and feeling beings
who form the organization, who try to achieve the organization's objectives and goals. Structure —
different people are given different roles and they have certain relationship with others. They all need to be
related in a structured way so that their work can be effectively coordinated.

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1.1 DEFINITION OF ORGANIZATION 3, 4, people are given assistance by way of buildings,

Technology machines, tools, processes and resources. While technology allows people to do more and
perform their work better, it also restricts people in various ways. Social system organization is a part of a
larger system that contains many other elements such as government, family and other organizations. All
of these mutually influence each other in a complex system that creates a context for a group of people.

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1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR Approach Scientific Management Approach

Bureaucratic Approach Hawthorne Studies Details Developed by Frederic Winslow Taylor in the
beginning of the 20th century. This approach assumed that employees are motivated largely by money and
the importance of giving monetary incentives to efficient workers. Max Weber proposed a 'bureaucratic'
form of structure, which would work for all organizations. This approach emphasized on the organizational
structure, division of labours, laws and orders, etc. The studies brought out a number of findings relevant
to understanding human behaviour at work. This approach emphasized on the influenced of social factors
and group on the individual behaviour. This approach also helps to usher in a more humanity-centric
approach to work.

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1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR ' Basic organizational behaviour models are as
follows: Autocratic System Custodial Organizational Behaviour Models Collegial Supportive

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1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR l, The Autocratic Model ' This model depends
on and an employee who does not power follow orders will be penalized. What is paramount for the
employee is obedience to a boss, not respect for a manager. The boss pays minimum wages because
minimum performance is given by employees as a result. ‘Some employees give higher performance
because of internal achievement drivers (personally like their boss, the boss is a natural-born leader, or
other factors).

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1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR 2, The Custodial Model economic resources

and focused toward ' This approach depends on money to pay wages and benefits. ‘Since employees'
physical needs are already reasonably met, the employer looks to security needs as a motivating force. ‘If
an organization does not have the wealth to provide pensions and pay other benefits, it cannot follow a
custodial approach

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1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR 3, The Supportive Model instead of power or '
The supportive model depends on leadership money. Through leadership, management provides a climate
to help employees grow and accomplish, in the interests of the organization, the things which they are
capable. ‘Employees will take responsibility, develop a drive to contribute, and improve themselves if
management gives them a chance. ‘Management orientation is therefore, to support the employee's job
performance rather than to simply support employee benefit payments.

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1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR 4, The Collegial Model ' The collegial model
depends on the management building a feeling of (people working together partnership with employees
cooperatively). ‘Managers are seen as joint contributors rather than bosses, and the coach that builds a
better team. As a result, the employee's response to this situation is responsibility. ‘The psychological
result of the collegial approach for the employee is self-discipline. ‘Employees usually feel a degree of
fulfilment, worthwhile contribution and self-actualization.

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1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR 5, The System Model ' Since employees are
being asked to spend many hours of their day at work, they want a work context that is ethical, infused
with integrity and trust, and able to provide an opportunity to experience a growing sense of community
among co-workers. To accomplish this, managers must increasingly demonstrate a sense of care and
compassion, being sensitive to the needs of a diverse workforce with rapidly changing needs, and complex
personal and family needs. Therefore, employees go beyond the self-discipline of the collegial approach
until they reach a state of self-motivation, in which they take responsibility for their own goals and actions.

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1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR I. 2. 3. 4. 5. Characteristics Basis of model

Managerial- orientation Employee psychological result Employee needs met Performance result Autocratic
Power Authority Dependence on boss Subsistence Minimum Custodial Economic resources Money
Dependence on organization Security Passive cooperation Supportive Leadership Support participation
Status and Recognition Awakened drives Collegial Partnership Teamwork Self-discipline Self-
actualization Moderate enthusiasm System Partnership Teamwork Self-motivation Highest order needs
Full enthusiasm

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1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR the fundamental concepts of

organizational behaviour can be divided into two, namely the nature of people and the nature of the
organization. Nature of People Individual Differences A Whole 5) Person Motivated Behaviour Human 4
Dignity

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1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR l, Individual differences —

People are different not only physically such as sex, age, height, weight, complexion and so on, but also
different in their psychological traits e.g. intelligence, attitude, motivation, personality, needs and
perception. —The management has to treat each individual differently to get the best out of them. —The
diversity of people needs to be recognized and viewed as a valuable assets to organizations.

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1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR 2, A whole person —
Organizations need to recognize that an individual not only comes with skills and intelligence but also a
personal life, needs and desires. —A person's personal life cannot be separated from his work life since
people function as human beings. —If the whole person can be developed, then benefits will extend
beyond the firm into the larger society in which each employee lives.

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1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR 3, motivated behaviour —

Motivation is essential for the proper functioning of organizations and an organization can show its
employees how certain actions will increase their need for fulfilment. —A path toward increased need
fulfilment is the better way of enriching the quality of work. — People are motivated not by what others
think they ought to have but what they themselves want. — Motivating employees is essential to the
operation of organizations and is the biggest challenge faced by managers.

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1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR 4, Human dignity/ Value of

the person — People want to be treated with care, dignity, and respect and are increasingly demanding
such treatment from their employers. They want to be valued for their skills and abilities and to be
provided with opportunities to develop themselves. —An employee wants to be treated separately from
other factors of production and they refuse to accept the old idea that they are simply treated as economic
tools. — Humans are the best creation of God and they want to be treated with respect, dignity and other
things from their employers and society.

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1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR I. Social system 2. Mutual

interest Nature of Organizations

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1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR Social system —the

individuals of a society are considered as a system organized by a characteristic pattern of relationships
with a distinctive culture and values. —In organizations, people have social roles and status, and their
behaviour is influenced by their group's individual drives. —An organizational environment in a social
system is dynamic and all parts of the system are interdependent.

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1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR 2, Mutual interest —

Mutual interest provides a superordinate goal — one that can be attained only through the integrated
efforts of individuals and their employees. — Organizational relationships are most likely to be strong if
different groups can negotiate strategies in which the interests are common to both parties and are related
to the accomplishment of their respective goals. — Individuals who have shared mutual interests are likely
to make their organization the strongest, because even though their views may be different, they still have
a shared concern for similar objectives.

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1.4 APPROACHES TO ORGANIZATIONAL BEHAVIOUR Human resources Interdisciplinary Systems

Contingency Productivity

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1.4 APPROACHES TO ORGANIZATIONAL BEHAVIOUR l, Human Resources Approach —this

approach concerned with the growth and development of people towards higher levels of competency,
creativity and fulfilment because people are the central resource in any organization. —This approach
helps employees become better in terms of work and responsibility and subsequently tries to create a
climate in which they can contribute to the best of their improved abilities

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1.4 APPROACHES TO ORGANIZATIONAL BEHAVIOUR 2, 3, Contingency Approach — Different

situations require different behavioural practices for effectiveness instead of following a traditional
approach for all situations. — Each situation must be analysed carefully to determine the significant
variable that exist in order to establish more effective practices. Productivity Approach — Productivity is
considered to be improved is more output can be produced from the same unit of output. However, besides
economic input and output, human and social input and output are also important.

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1.4 APPROACHES TO ORGANIZATIONAL BEHAVIOUR 4, Systems Approach —this approach

emphasizes the interdependence of each of these elements (people and technology) within the organization
if the organization as a whole is to function effectively. —This approach is also emphasizes on the
interaction between the organization and its broader environment which consists of social, economic,
cultural and political environment within which they operate. — Two ways of dependent: ' Dependent on
the environment to provide input ' Dependent on the environment to accept the output

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1.4 APPROACHES TO ORGANIZATIONAL BEHAVIOUR 4, Interdisciplinary Approach —This

approach advocates that efficiency can be attained by finding the right methods to get the job done through
specialization on the job by planning and scheduling, by using standard operating mechanisms,
establishing standard time to do the job, by proper selection and training of personnel and through wage
incentives.

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1.5 ORGANIZATIONAL BEHAVIOUR, GLOBALIZATION AND DIVERSIFICATION ' The

multinational operations of businesses add new dimensions to organizational behaviour, as it is a step into
different social, political and economic environments, the social, political, cultural and world.

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1.5 ORGANIZATIONAL BEHAVIOUR, GLOBALIZATION AND DIVERSIFICATION Social

Conditions — There is a shortage of managerial personnel, scientists and technicians in many countries,
due to poorly developed resources. — Hence, the required skills must be imported from other countries
temporarily and training programmes need to be developed to train the local workers. — The intertwined
between local culture and technology. —The rise of ethical issues in the organization such as employee
theft, conflict of interest, sexual harassment, organizational justice and whistleblowing.

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1.5 ORGANIZATIONAL BEHAVIOUR, GLOBALIZATION AND DIVERSIFICATION 2, 3, Political

Conditions —These include instability of government, restricting industries to a particular area and
nationalistic drives such as self-sufficiency in latest technologies. Economic Conditions — less developed
nations are low per capita income and rapid inflation, and these influence the introduction of advanced
technology and sophisticated organizational systems.

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1.5 ORGANIZATIONAL BEHAVIOUR, GLOBALIZATION AND DIVERSIFICATION 4, Cultural

Differences in an Organization — the cultures are determining the work-related attitudes and these
includes the following: Individualism vs Collectivism Power distance Uncertainty avoidance Masculinity
vs femininity Time dimension

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1.5 ORGANIZATIONAL BEHAVIOUR, GLOBALIZATION AND DIVERSIFICATION 5, Workforce

Diversification —The managerial personnel entering another nation need to adjust their leadership styles,
communication patterns and other practices to fit their host country. — Diversity encompasses all forms of
differences among individuals including culture, gender, age, ability, religious affiliation, personality,
economic class, social status, military attachment and sexual orientation. — However, it also cause
resistance to change, cohesiveness, communication problems, conflicts, and decision-making issues.

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1.6 ORGANIZATIONAL BEHAVIOUR AND TECHNOLOGICAL ADVANCEMENT ' Each

technological advancement adds pressure on organizational behaviour to maintain a delicate balance
between technical and social systems. Technology has started affecting the very nature of management,
such as developing their technical competency and that of their workers, motivating employees for
reinvention, dealing with employees' stress, depression and anxiety, and helping employees to adjust to
technological changes.

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IS NOT ABOUT WAITING FOR THE STORM TO PASS BUT LEARNING TO DANCE IN THE RAIN