Masters program

Organizational behavior & Development

Lecture 1
AN OVER VIEW OF ORGANIZATIONAL
BEHAVIOR

by Dawit H. (Asst. prof.)

 Lecture 1 Objectives

After this lecture you should:

 Define organizational behavior (OB).
 Differentiate between the three levels at which
organizational behavior is examined
 Identify the major disciplines that contribute to
Organizational Behavior.
 Understand why you Need for Study of OB
 List the major challenges for Organizational
Behavior
Some Stimulant Quotes

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What is organizational behavior?
 What is meant by organization?
 What is meant by behavior?
 What exactly is meant by the term “organizational
behavior”?
 What are the importance’s of organizational behavior?
 An organization is made up of a group of people, who
work together for common goals.
 Eg. Schools, hospitals, churches, military units, retail
stores, police departments, volunteer org Etc.

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What is an organization?
 An organization is made up of a group of people, who
work together for common goals.
 An organization is a collection of people who work
together to achieve individual and organizational goals.

 The organization is a complex social system and is the

sum of many interrelated variables.

 Eg. business units, universities, Schools, hospitals,

churches, military units, retail stores, police departments,
volunteer org Etc.

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 …..What is an organization?

 A consciously coordinated social unit composed

of two or more people that functions on a
relatively continuous basis to achieve a common
goal.

Or

 It is a collection of people working together to

achieve a common purpose, with that purpose
being to produce goods and /or services that
satisfy the needs of the customers.

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 The context of organization
 Organizations exist in order to achieve objectives
and to provide satisfaction for their members.

 Organizations enable objectives to be achieved

that could not be achieved by the efforts of
individuals on their own.

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Features of organization
Organizations are characterized as being:

i. Goals: common objectives to accomplish task

ii. Peopled : cooperative efforts

iii. Structured: hierarchal, rules & regulations,

communication

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Organization is the amalgamation of goals, structure
and people

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 ….components Cont’d
a. People

• People are the main component of any organization that has to

be managed.

• Every individual has a personal goal to be achieved.

• Organizations must identify the need spectrum/range of

individuals and take suitable steps for its fulfillment to enable
them to perform effectively so that they complete their allotted
task in time.

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 ….components Cont’d

b. Work teams and Groups play a vital role in the

organization
o Relationship between the workers, with subordinates and

superiors should be established based on full understanding

and complete faith based on mutual trust so that it is easy to
communicate and understand each other’s views.

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 ….components Cont’d
C. Internal and External environment

Structure
Technology
Jobs Internal environments
Processes
Strategy

Economic Condition
Political Condition
Social Condition External environments
Cultural Pattern
Competitive Level

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 Definitions of Management
 Management has been viewed by scholars as:
 A Process,
 A Discipline,
 A Human Activity and
 A Career
 Management has also been viewed as a system of

 Inputs (resources and factors of production),

 Processes (managerial tasks and activities), and

 Outputs (products and/or services)

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 ……Defining Mgmt

 Management F.W. Taylor, known as the father of scientific

management, has opined that
“Management is an art of knowing what is to be done and
seeing that it is done in the best possible manner”.

 Henri Fayol, father of 14 principles, has put forth an

appropriate definition.

“Management is to forecast, to plan, to organize, to

command, to coordinate and control activities of others.”

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Behavior
 Behavior is The actions or reactions of persons or things
in response to external or internal stimuli.

 Therefore, OB is

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 ………. What is Organizational Behavior

 Organizational behavior is a field of study that investigates

the impact that individuals, groups and organizational structure
have on behavior within the organization, for the purpose of
applying such knowledge towards improving an organizational
effectiveness.
 The above definition has three main elements;

 First, OB is an investigative study of individuals and groups,

 Second, the impact of organizational structure on human
behavior
 Third, the application of knowledge to achieve organ.
effectiveness.

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 ………. What is OB?

 Organizational Behavior (OB) is so important matter for

an organization to operate their business.
 Every organization’s ultimate target is to maximize profit
by satisfying customers need, want and demand
successfully.
 If any organization wants to do business for long time they
must have to organize their business organization to
compete in a high competitive global market.
 That's why the management of any organization is very
sincere to operate their employees in a dynamic way

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 ………. What is OB?

Insert Figure 1.1 here

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Levels of OB Analysis
Organizational Level

Group Level

Individual
Level

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Major Characteristics of OB
Interdisciplinary. Organizational behavior is an interdisciplinary
orientation that integrates behavioral sciences in understanding
behavior and performance. It draws heavily on knowledge about
behavior generated in the social sciences of psychology,
sociology, and anthropology.
Behavioral Science Foundation. The behavioral sciences—
psychology, sociology and anthropology have provided the basic
philosophy, characteristics of science, and principles that are so
freely borrowed by the field of organizational behavior. The
social sciences of economics, political science, and history have
had a secondary impact on the field.

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Major Characteristics of OB
Contingency Orientation. The term contingency orientation
reflects the need to consider the situation and individuals
involved before drawing conclusions about behavior. The OB
field has no universally applicable set of prescriptions for
managers.
Three Levels of Analysis. The OB is unique in its approach to
behavior because it encompasses three levels of analysis,
individual, group, and formal organization. In addition, all
three levels are treated with equal importance and needs to be
scientifically studied.

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 ….Characteristics of OB Cont’d
Scientific Method Foundation. OB had inherited the tradition
of scientific method in its investigations from its parent
disciplines. The scientific methods emphasize the use of logic
and theory in formulating research questions and the systematic
use of objective data in answering such questions.
Concern for Application. The OB researcher must always be
concerned with understanding real events in actual
organizations and with communicating results in a meaningful
fashion to practicing managers.

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Contributing Disciplines to the OB Field
Psychology
Unit of analysis = Individual
The science that seeks to measure, explain, and sometimes change the
behavior of humans and other animals.

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 ………..Contributing Field (cont’d)
Sociology
The study of people in relation to their fellow human beings.

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 ………..Contributing Field (cont’d)
Social Psychology
An area within psychology that blends concepts from psychology
and sociology and that focuses on the influence of people on one
another.

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 ………..Contributing Field (cont’d)
Anthropology
The study of societies to learn about human beings and their
activities.

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 ………..Contributing Field (cont’d)
Political Science
The study of the behavior of individuals and groups within a
political environment.

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Needs for Study of OB

 It helps an individual understand oneself. It is a study of the

actions & attitudes that people exhibit within organization.
 It helps managers in getting the work done through effective
ways.
 It emphasizes the interaction and relations between the
organization and individual behavior.
 It helps to develop work-related behavior & job satisfaction.
 It helps in building motivating climate.
 It helps in building cordial industrial relations.
 It implies effective management of human resource

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Challenges for Organizational Behavior
 Economic Pressures
 Continuing Globalization
 Workforce Demographics
 Workforce Diversity
 Customer Service
 People Skills
 Networked Organizations
 Social Media
 Employee Well-Being at Work
 Positive Work Environment
 Ethical Behavior

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End of Lecture 1

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