What Is Organizational Behavior

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a. What is organizational behavior?

Why is it important for managers and aspiring managers to


study OB using?

Organizational behavior is the study of how people interact in a organization and how that can affect
productivity.

It’s very important for managers or aspiring managers to study OB as this will provide a better working
environment to the employees and help with communication and understanding interpersonal skills

b. “Behavior is generally predictable, so there is no need to study organizational behavior


formally.” What is your view of this statement?

This is statement is wrong, because the approach of predicting others behavior can lead to erroneous
predictions. In addition human behavior may appear to be predictable, but it is highly complex and
individualized.

Studying Organization Behavior is beneficial in learning how an organization structure and culture affect
employee’s productivity and behavior.

c. What makes an organization an organization? What are the defining characteristics?

An organization is a group of people who work together

Division of Work:

Organisation helps in dividing the work into related activities so that they are assigned to different

individuals.

2. Co-Ordination:

Co-ordination of various activities is as essential as their division. It helps in integrating and harmonising

various activities. Co-ordination also avoids duplications and delays. In fact, various functions in an

organisation depend upon one another and the performance of one influences the other. Unless all of

them are properly coordinated, the performance of all segments is adversely affected.

3. Common Objectives:

The organization has a goal to achieve and that means that all the employees irregardless of the work

they do at the end of the day they have common objective to achieve. This will help in their

4. Co-operative Relationship:

Constitutes of various members of the group such as managers and employeeste8we3t2


An organizationAn organisation creates co-operative relationship among various members of the group.

An organisation cannot be constituted by one person. It requires at least two or more persons.

Organisation is a system which helps in creating meaningful relationship among persons. The relationship

should be both vertical and horizontal among members of various departments. The structure should be

designed that it motivates people to perform their part of work together.

5. Well-Defined Authority-Responsibility Relationships:

An organisation consists of various positions arranged in a hierarchy with well defined authority and

responsibility. There is always a central authority from which a chain of authority relationship stretches

throughout the organisation. The hierarchy of positions defines the lines of communication and pattern of

relationships.

What is human capital? Be specific.

human capital is the economic value that a person, or group of people, brings to an
organization based on their training, skills, loyalty, motivation, and well-being. These
intangible qualities help companies produce and sell their goods or services.
b. How does human capital provide the basis for competitive advantage?

The basis for competitive advantage can be found within the company's staff. These are the
people they perform daily tasks and functions that keep the business running. Employees
are considered to be a competitive advantage because of their experiences and knowledge
about the company cannot be easily duplicated by the competition
Competitive advantage based on talented human capital allows organizations to be able to seize new
opportunities and achieve permanence and future continuity 

c. What are the five characteristics of high-involvement management? What evidence exists to
support the effectiveness of this approach?
1. hire the right employees
2. focus on training and development
3. place importance on communication
4. empowering employees decision-making
5. rewards that are linked to performance outcomes
Researchers have found that high-involvement work methods can be generalized to
the service industry area, and impressive results have been documented. High-
involvement management applications were associated with worker morale, worker
retention, and substantial financial achievement.
High involvement management is associated with higher productivity and better economic
performance of firms. High involvement management gives more discretion to employees, and
high job control weakens the negative link between job demands and employee well-being.

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