Session 1

Organizational
Behavior :
The Introduction

Sumber : MAGISTER MANAGEMENT PROGRAM

Hitt et al (2018)
Robbins & Judges (2017)
PPM School of Management
? KNOWLEDGE OBJECTIVES

• Define organizational behavior and explain the strategic

approach to OB.
• Provide a formal definition of organization.
• Describe the nature of human capital.
• Discuss the conditions under which human capital is a source
of competitive advantage for an organization.
• Describe positive organizational behavior and explain how it
can contribute to associates’ productivity.
• Explain the five characteristics of high-involvement
management and the importance of this approach to
management.
WHAT IS AN ORGANIZATION?

• “Organizations are social entities that are goal-

oriented; are designed as deliberately structured
and coordinated activity systems, and are linked
to the external environment” (Daft, 2004).

• A tool people use to coordinate their actions to

obtain something they desire or values (Jones,
2013)

• Collection of individuals forming a coordinated

system of specialized activities for the purpose of
achieving certain goals over some extended period
of time (Hitt, et al, 2018)
COMMON FEATURES
OF ORGANIZATIONS

• Network of individuals
• System
• Coordinated activities
• Division of labor
• Goal orientation
• Continuity over time, regardless of
individual membership change
 MANAGEMENT
Management is a process by which organizational goals
(outputs) are achieved through the use of corporate resources
(inputs). These organizational decisions (processes) are
typically made by managers.

Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to attain
goals
 Successful and Effective
Manager
*) Successful defined in terms of the
speed of promotion within the
organization.

Effective defined in terms of the

quantity and quality of their
performance and satisfaction and
commitment of their employees
Exhibit 1-1: Factors and Outcomes of a Strategic Approach to Organizational Behavior
MANAGERS & ORGANIZATION

PEOPLE

METHODS/TECHNOLOGY

MANAGEMENT
PRINCIPLES
PHYSICAL RESOURCES
MANAGERS (POAC) (MATERIAL, MACHINES,
TOOLS)

FINANCIAL RESOURCES

INFORMATION

ORGANIZATIONAL RESOURCES OBJECTIVES

 HUMAN CAPITAL

SUM OF SKILLS, KNOWLEDGE, AND

GENERAL ATTRIBUTES OF PEOPLE IN
THE ORGANIZATION.
 HUMAN CAPITAL AS A SOURCE
OF COMPETITIVE ADVANTAGE

Competitive ✓ Value
Advantage: • Individuals capable of supporting
Able to perform strategy for competing.
some aspect of ✓ Rareness
work better than
• Unique skills and talents of
competition individuals.
offering
✓ Imitability
customers added
value. • Extent that individual skills and
talents can be copied.
C OMPETITIVE A DVANTAGE
P OTENTIAL
Are human resources in the firm . . .
Supported by
Difficult effective Competitive
Valuable Rare to imitate management implications Performance
Competitive Below
No --- ---
Disadvantage Normal

Competitive
Yes No --- Normal
Parity

Temporary
Above
Yes Yes No Competitive
Normal
Advantage

Sustained
Above
Yes Yes Yes Competitive
Normal
Advantage

Adapted from Exhibit 1-2: Human Capital and Competitive Advantage

 Manager Challenges
• Improving Operational Excellence
• Managing Workforce Diversity
• Improving Quality and Productivity
• Improving Customer Service and Responsiveness

• Improving and Empowering People Skills

• Stimulating Innovation and Change

• Working in Networked Organizations

• Helping Employees Balance Work/Life Conflicts

• Improving Ethical Behavior

• Creating a Positive Work Environment

• Responding to Globalization
• Responding to Economic Pressure
• Coping with “Temporariness”
DEMANDS ON
HIGH-INVOLVEMENT
MANAGERS

• Empower
• Trust
• Use human capital to
create
competitive advantage
 PERFORMANCE CONTINUUM

PROBLEM EMPLOYEE STAR

DEADWOOD WORK HORSE

BEHAVIOUR

The action or
reaction of
something under
specified
circumstances
The way how
people act as
individual and as
groups

15
INTUITION AND SYSTEMATIC STUDY

• Gut feelings
Intuition • Individual observation

Managing People
• Common sense

• Looks at relationships
Systematic • Scientific evidence
Study • Predicts behaviors

The two are complementary means of predicting behavior.

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
 MANAGERS SHOULD USE ALL APPROACHES

The trick is to know when to go with your gut.

– Jack Welsh

❑ Intuition is often based on inaccurate information

❑ Faddism is prevalent in management
❑ Systematic study can be time consuming

Use evidence as much as possible to inform your intuition and experience. That is
the promise of OB.
 Organizational Behavior
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
organization’s effectiveness.

The study of what people think, feel, and

do in and around organizations
Actions of individuals and groups in an
organizational context.
 Organizational behavior is an applied
behavioral science that is built upon
contributions from a number of behavioral
disciplines.
 • Organizational behavior uses
systematic study to improve
predictions of behavior over
intuition alone.
ORGANIZATIONAL • Because people are different, we
need to look at OB in a contingency
BEHAVIOR framework, using situational
variables to explain cause-and-
effect relationships.
• Organizational behavior offers
specific insights to improve a
manager’s people skills.
ORGANIZATIONAL BEHAVIOR

• It helps managers to see the value of workforce diversity and

practices that may need to be changed in different countries.
• Organizational behavior offers specific insights to improve a
manager’s people skills.
• It can improve quality and employee productivity by showing
managers how to empower their people, and help employees
balance work–life conflicts.
• It can help managers cope in a world of temporariness and
learn how to stimulate innovation.
• Finally, OB can guide managers in creating an ethically healthy
work climate.
IMPORTANCE OF UNDERSTANDING
ORGANIZATIONAL BEHAVIOR

• Enhance our ability to leverage people’s potential

within the organization.
• Gain confidence in empowering associates to work
toward solving problems.
• Integrate behavioral science knowledge to
organizational applications.
 STRATEGIC OB
APPROACH

• Organizing and managing

people’s knowledge and skills
to:
• implement strategy
• gain competitive advantage

• Nurtures individual’s strengths

for personal and professional
advantage
Exhibit 1-4: Managing Organizational Behavior for Competitive Advantage
MANAGERIAL IMPLICATIONS

• OB focuses on how to improve factors that make organizations more effective.

• The best predictions of behavior are made from a combination of systematic
study and intuition.
• Situational variables moderate cause-and-effect relationships, which is why OB
theories are contingent.