CHAPTER 1 THE BENEFITS
ORGANIZATIONAL BEHAVIOR (OB)
AN OVERVIEW OF HUMAN BEHAVIOR IN
ORGANIZATIONS
What is Human Behavior?
● Human behavior refers to the
physical actions of a person
reflective of his behaviors.
● These actions maybe similar or
different when he is in or out of
organizations.
● Human behavior in organizations is
referred to as organizational behavior
(OB).
WHAT IS ORGANIZATIONAL BEHAVIOR?
● Organizational behavior is defined
as the study of human behavior in
organization, of the interaction
between individuals and the
organization, and of the organization
itself.
The Goals of OB
1. To explain behavior
2. To predict behavior
3. To control behavior
The Elements of OB
People
● consisting of individual persons and
groups either formal or informal group
Structure
● defines the formal relationship of
people in the organization
● describes how job tasks are formally
divided
Technology
● refers to the combination of resources,
knowledge, and techniques which
affects the task that they perform
Environment
● refers to forces outside the
organization that potentially affect the
organization's performance
OF STUDYING
Development of people skills
➢ The skill in doing his work; and
➢ The skill in relating with people.
Personal growth
➢ Knowledge of the behavior of others
will help the person understand his
own behavior.
Enhancement of organizational and
individual effectiveness
➢ Knowledge of OB is very useful in
making the right decisions, where
effectiveness follows.
Sharpening and refinement of common
sense
➢ Improvements in this type of ability
can be made and great benefits can
be derived.
A BRIEF HISTORY OF ORGANIZATIONAL
BEHAVIOR
The origins of OB can be traced to the
following:
1. the human relations approach
a. the scientific management
approach
b. the human relations approach
2. the personality theories
a. Freud's model
b. the behaviorist approach
c. the humanist approach
Frederick W. Taylor
➢ a well-known disciple of the scientific
management movement
➢ The primary purpose of scientific
management was the application of
scientific methods to increase the
individual worker's productivity.
Elton Mayo
➢ conducted the Hawthorne studies
which determined the effect of hours
of work, periods of rests and lighting
have on worker fatigue and
productivity
➢ discovered that the social environment
have an equal if not greater effect on
productivity than the physical
environment
Sigmund Freud ETHICS AND ORGANIZATIONAL
➢ brought the idea that people are BEHAVIOR
motivated by far more than conscious
logical reasoning ➢ Ethics refers to the set of moral
➢ believed that irrational motives in the choices a person makes based on
subconscious mind determines the what he or she ought to do.
majority of people's behavior ➢ Organizational ethics are moral
principles that define right or wrong
Behaviorist Approach behavior in organizations.
➢ Ethical behavior is a behavior that is
❖ J.B. Watson formulated the theory accepted as morally "good" and "right"
about learned behavior. as opposed to "bad" and "wrong."
❖ It indicates that a person can be
trained to behave according to the What constitutes right and wrong behavior
wish of the trainer. in organization is determined by:
❖ B.F. Skinner has his theory on
behavior modification. 1. the public
❖ It concludes that when people receive 2. interest groups
a positive stimulus for what they have 3. Organizations
done, they will repeat their behavior 4. the individual's personal morals and
and when they receive no response to values
the action, they will not repeat it.
Ethical Issues
Humanist Approach 1. Conflict of interest
- Conflict exists when a person
❖ Carl Rogers focused on the person is in the position of having to
as an individual instead of a rigid decide whether to advance
methodology. the interests of the
❖ He believes that people should organization or to operate in
acquire their own values and attitudes his or her own personal
rather than be committed to a fixed set interests.
of prescribed goals. 2. Fairness and honesty
❖ Fritz Perls' contribution is the Gestalt - Ethical behavior demands that
psychology. beyond obeying the law, they
❖ The object is to integrate conflicting should not knowingly harm
needs into an organized whole, in customers, clients, and
which all parts of a person work competitors.
together towards growth and 3. Communication
development. - Organizations that provide
❖ Abraham Maslow's model espouses false and misleading
the idea of developing the personality information about their
toward the ultimate achievement of products and services
human potential. 4. Relationships within the
❖ This process is referred to as self- organization
actualization. - People can become victims of
❖ To achieve this objective, the person organizations that provide
must work his way up the succeeding false and misleading
steps of a hierarchy of needs. information about their
products and services.
CHAPTER 2
INDIVIDUAL DIFFERENCES, MENTAL
ABILITY, AND PERSONALITY
INDIVIDUAL DIFFERENCES
➢ Individual differences refer to the
variation in how people respond to the
same situation based on personal
characteristics.
Consequences Arising Out of Individual
Differences
1. Differences in productivity
2. Differences in the quality of their work
3. Difference in how people react to
empowerment
4. Difference in how people react to any
style of leadership
5. Difference in terms of need for contact
with other people
6. Difference in terms of commitment to
the organization
7. Difference in terms of level of self-
esteem
Demographic Diversity
Gender Differences
● The differences in the perception of
male and female roles are referred to
as gender differences.
● Men and women are not different
along the following concerns:
1. problem solving abilities;
2. analytical skills;
3. competitive drive;
4. Motivation;
5. learning ability; and
6. sociability.
Generational and Age-Based Differences
➢ A worker that belongs to a certain
generation may behave differently
from a worker who belongs to another.
➢ Differences in the ages of workers
also bring about expectations of
differences in the behavior of workers.
➢ This is seen most often in age
difference since age is associated with
experience.
Culture
➢ It refers to the learned and shared
ways of thinking and acting among a
group of people or society.
Generational and Age-Based Differences
➢ A worker that belongs to a certain
generation may behave differently
from a worker who belongs to another.
➢ Differences in the ages of workers
also bring about expectations of
differences in the behavior of workers.
➢ This is seen most often in age
difference since age is associated with
experience.
Culture
➢ It refers to the learned and shared
ways of thinking and acting among a
group of people or society.
Two Dimensions of Culture
Social culture
➢ refers to the social environment of
human-created beliefs, customs,
knowledge, and practices that define
conventional behavior in a society
Organizational culture
➢ refers to the set of values, beliefs, and
norms that is shared among members
of an organization
Aptitude and Ability
➢ Aptitude is defined as the capacity of
a person to learn or acquire skills.
➢ Ability refers to an individual's
capacity to perform the various tasks
in a job..
Factors of a Person's Overall Abilities
Physical abilities
- refer to the capacity of the individual to
do tasks demanding stamina,
dexterity, strength, and similar
characteristics.
Mental abilities
- refer to the capacity to do mental
activities, such as thinking, reasoning,
and problem solving
Dimensions of Physical Ability
1. Dynamic strength
- the ability to exert muscular
force repeatedly
continuously over time
2. Trunk strength
- the ability to exert muscular
strength using the trunk
(particularly the abdominal
muscles) muscles
3. Trunk strength
- the ability to exert force
against external objects
4. Explosive strength
- the ability to expend a
maximum of energy in one or
a series of explosive acts
5. Extent flexibility
- the ability to move the trunk
and back muscles as far as
possible
6. Dynamic Flexibility
- the ability to make rapid,
repeated flexing movements
7. Body coordination
- the ability to coordinate the
simultaneous actions
different parts of the body
8. Balance
- the ability to maintain
equilibrium despite forces
pulling off balance
9. Stamina
- the ability to continue
maximum effort requiring
prolonged effort over time
Dimensions of Intellectual Ability
Cognitive Intelligence
refers to the capacity of a person to
acquire and applyknowledge including
solving problems
Emotional intelligence
➢ refers to a person's qualities such as
understanding one's own feelings,
empathy for others, and the regulation
of emotion to enhance living
Cultural environment
➢ refers to an outsider's ability to
interpret someone's unfamiliar and
ambiguous behavior the same way
that person's compatriot
or
Social Intelligence
➢ refers to a person's ability to relate
effectively with others
The Triarchic Theory of Intelligence by
Robert Sternberg
Componential intelligence (analytical
intelligence)
➢ involves components (or mental
processes) used in thinking
➢ traditional type of intelligence needed
for solving difficult problems with
abstract reasoning
Experimental Intelligence (creative
intelligence)
➢ type of intelligence that is required for
Imagination and combining things in
novel ways
of Contextual Intelligence (practical
intelligence)
➢ requires adapting to, selecting, and
shaping our real-world environment
➢ Incorporates the ideas of common
sense, wisdom, and street smarts
Multiple Intelligence by Howard Gardner
Linguistic
- sensitive to language, meanings, and
the relations among words.
- able to communicate through
language including reading, writing,
and speaking
Bodily-kinesthetic
- enables people to use their body and
perceptual and motor systems in
skilled ways
Logical Mathematical
- covers abstract thought, precision,
counting, organization, and logical
structure, enabling the individual to
see relationship between objects
Intrapersonal
 - highly accurate understanding of
himself or herself
Musical
- create and understand meanings
made out of sounds and to enjoy
different types of music
Interpersonal
- makes it possible for persons to
recognize and make distinctions
among the feelings, motives, and
intentions of others
Spatial
- enables people to perceive and
manipulate images in their brain and
to re-create them from memory
Naturalist
- possesses the ability to seek patterns
in the external physical environment
Personality
➢ Personality refers to the sum total of
ways in which an individual reacts and
interacts with others.
➢ The "ways" are the patterns of
behavior that are consistent and
enduring.
Determinants of Personality
Hereditary factors
- are those factors that are determined
at conception.
Environmental factors
- are those that exert pressures on the
formation of an individual's
personality.
Kinds of Environmental Factors
1. Cultural factors
- refer to the established norms,
attitudes, and values that are
passed along from one
generation to the next and
creates consistency over time
2. Social factors
- refer to those that reflect
family life, religion and the
many kinds of formal and
informal groups in which the
individual participates
throughout his life
3. Situational factors
- indicate that the individual will
behave differently in different
situations
Kinds of Personality Factors and Traits
1. Emotional stability
- Characterizes one as calm,
self-confident, and secure.
- A person who possesses a
high degree of emotional
stability can be expected to
withstand stress.
-
2. Extraversion
- Someone who is sociable,
gregarious, and assertive.
3. Openness to experience
- A person who is imaginative,
cultured, curious, original,
broad-minded, intelligent, and
artistically sensitive.
4. Agreeableness
- It refers to the person's
interpersonal orientation.
- An agreeable person is
cooperative, warm, and
trusting.
5. Conscientiousness
- It refers to a person's
reliability.
6. Self-monitoring behavior
- It reflects a person's ability to
adjust his or her behavior to
external, situational, or
environmental factors.
7. Risk taking and thrill seeking
- It refers to the person's
willingness to take risk and
pursue thrills that sometimes
are required in the
workplaces.
8. Optimism
- It refers to the tendency to
experience positive emotional
states and to typically believe
 that positive outcomes will be
forthcoming from most
activities.
EMOTIONAL INTELLIGENCE
● The concept of emotional intelligence
or emotional quotient (EQ) was
introduced by Daniel Goleman.
● EQ refers to the ability of the person to
accurately perceive, evaluate, express
and regulate emotions and feelings.
Five components of EQ
Self-regulation
➢ refers to the ability to calm down
anxiety, control impulsiveness, and
react appropriately to anger
Motivation
➢ refers to the passion to work for
reasons that go beyond money or
status
Empathy
➢ refers to the ability to respond to the
unspoken feelings of others
Self-awareness
➢ refers to the awareness of one's own
personality or individuality
Social Skills
➢ refers to the proficiency to manage
relationships and building networks
MORE ON PHYSICAL ABILITY
1. Sense of sight
- People differ in what they
actually see (e.g. color
blindness).
2. Sense of hearing
- People differ in their ability to
hear (e.g. sharpness in
listening to tones).
3. Sense of taste
- A person's tongue may be
sensitive to various tastes and
this makes him or her different
from another person who is
less sensitive to taste.
4. Sense of smell
- People have different degrees
of sensitivity to smell.
5. Sense of touch
- A person's sense of touch
may differ in degree with
another person's.
CHAPTER 3
LEARNING, PERCEPTION, AND
ATTRIBUTION
LEARNING
➢ It is defined as a relatively permanent
change in behavior or knowledge due
to experience.
Theories of Learning
➢ Classical conditioning is defined as a
type of learning in which a stimulus
acquires the capacity to evoke a
response that was originally evoked
by another stimulus.
STAGE 1: UCS unconditioned stimulus and
UCR unconditioned response (in basic terms,
this mean that a stimulus in the environment
has produced a behaviour / response which is
unlearned/unconditioned and therefore is a
natural response which has not been taught.
Example a perfume (UCS) could create a
response of happiness or desire (UCR)
STAGE 2: CS Conditioned stimulus. In this
stage a stimulus which produces no response
(neutral) is associated with the unconditioned
stimulus.
Example is perfume makes someone happy
or desire because its associated with a
specific person.
STAGE 3: A person who has been associated
with nice perfume is now found attractive.
Operant Conditioning
➢ Operant conditioning is a type of
learning where people learn to repeat
behaviors that bring them pleasurable
outcomes and to avoid behaviors that
lead to uncomfortable outcomes.
➢ Also called Instrumental Conditioning
is a learning process through which
the strength of a behaviour is modified
by reinforcement or punishment.
➢ It is a procedure used to bring about
such learning.
 ➢ Operant conditioning involves
voluntary behaviour
Example:
A child may see a box full of candy, salivates,
then learn to open a box of candy.
Or avoid touching a hot stove based on
previous experience.
A guy can be SADDAM all his life coz he gets
away with it.
Neutral Operants
Reinforcements
Punishers
Neutral Operants
➢ Responses from the environment that
may increase nor decrease the
probability of a behaviour being
repeated
Reinforcements
➢ Responses from the environment that
increases the probability of a
behaviour being repeated Both
negative or positive (Positive
reinforcements strengthens the
behaviour for repetition, negative is
removal of an unpleasant reinforce)
Punishers
➢ Responses from the environment that
decreases the likelihood of a
behaviour being repeated. It weakens
the behaviour.
Social Learning
➢ Social learning is the process of
observing the behavior of others,
recognizing its consequences, and
altering behavior as a result.
How Social Learning is Achieved:
➔ by observing what happens to other
people;
➔ by being told about something; and
➔ through direct experience.
Social Learning
Learning behaviour can be acquired by
observing or imitating others.
- Peers Teaching
- Peers and Peers coaching
- Imitation through Real Plays (perform
and practice)
-
PERCEPTION
➢ It is the process by which people
select, organize, interpret, retrieve,
and respond to information from their
environment.
Factors Influencing Perception
The Perceiver
- The person who perceives the target
is the perceiver.
- Factors influencing the perceiver: his
past experiences; his needs or
motives; his personality; and his
values and attitudes
The Target
- The person, object, or event that is
perceived by another person.
The Situation
- The situational factors that affect
perception are: time, work setting, and
social setting.
ATTRIBUTION
➢ Attribution Theory is the process by
which people ascribe causes to the
behavior they perceive.
Example
Someone is angry because they are bad-
tempered or something bad happened.
Example
Employee have challenging relationship with
boss/ management can be analysed as
negative causality that the boss "Is not Liked",
"plays favouritism", etc.
Fundamental Attribution Error in Daily Life:
[1] when you walk into a store and someone
bumps you and thought or label them as
careless
[2] when your friend and you were given
exams and she always has low grades, you
may think he/she is lazy, dumb, involved in
other activities thatn studying, not interested in
studies.
[3] commitment phobia. Children who have
seen parents divorce are likely to suffer fears
of commitment. A girl who've been fooled by
ex bfsss are now finding it hard to trust a - The consideration given to how
sincere guy consistent a person's behavior is
across different situations.
Common Attribution Errors Consensus
- This refers to the likelihood that all
The fundamental attribution errors those facing the same situation will
- the tendency to underestimate the have similar responses.
influence of external factors and Consistency
overestimate the influence of internal - This refers to the measure of whether
or personal factors in the behavior of an individual responds the same way
others across time.
The self-serving bias
- type of attribution error whereby SHORTCUTS USED IN FORMING
people tend to attribute their IMPRESSIONS OF OTHERS
achievements to their good inner  selective perception
qualities, whereas they attribute their  halo effect
failures to adverse factors within the  contrast effects
environment.  projection
Internal attribution  stereotyping
➢ Process of assigning cause of
behaviour to some internal Selective Perception
characteristics, rather than outside  Selective perception happens when a
force. person selectively interprets what he
➢ We look not just for physical sees on the basis of his interests,
appearance but for personality traits. background, experience, and
attitudes.
Example: we attribute the behaviour of a Halo Effect
person to their personality, motives or beliefs  Halo effect occurs when one attribute
of a person or situation is used to
External attribution develop an overall impression of the
person or situation
 The process of assigning the cause of Contrast Effects
behaviour to some situation or event  It is defined as evaluations of a
outside a persons control person's characteristics that are
 rather than internal characteristics. affected by comparisons with other
people recently encountered who rank
Example: We try to explain in our own higher or lower on the same
behaviour we tend to make external characteristics.
attributions, such as situational or environment Projection
features  Projection is attributing one's own
thoughts, feelings, or motives to
Self-Serving Bias another.
 Tendency to attribute our success to  It is likely to occur in the interpretation
personal characteristics, and attribute stage of perception.
our failure to factors beyond control.
 Simply it's our tendency to take credits Stereotyping
for positive events and blame external
factors when it comes to negative  Stereotyping refers to judging
events. someone on the basis of one's
perception of the group to which that
Factors That Influence Attribution person belongs.
Distinctiveness
  Leadership
 Integrity & Ethics
 Communication

Core Concepts
Plan > Do > Check > Act

This can be used to drive the process of

continuous improvement and to develop a
framework for quality improvements over many
years.

• Customer satisfaction - develop idea of

“energy meter”
• Internal Customer satisfaction –
successful internal rel.
• All work is process- improvement of
business processes.
• Measurement (performance) - defects,
reworks
• Synergy in teamwork – bringing people
together
• People make quality – quality of their own
work
• Continuous improvement cycle – both
internally and externally
• Prevention – “right at the first time, every
time” or zero defects.
TOTAL QUALITY MANAGEMENT BENEFITS OF TQM
• Creates a good corporate culture
• Is an all-inclusive and well thought-out • Better reviews from customers
means to organizational management that • Better performance from employees
searches to advance the quality of
processes, products, services and culture QUALITY CONTROL
through continuing minor changes in
reply to constant feedback. QUALITY is …
• Combine basic management techniques,  More than nonexistence of defects
current improvement efforts and technical  Re-establish pride and Loyalty
tools.  Nonstop improvement within
• TQM begins with a focus on the customer
organization
and with dedication to continuous
 Quality in different manner
improvement.
• TQM is a process of controlled change
that comprises the entire employees in the Approaches to Quality Definition
improvement of the quality of products
and services to boost the productivity of • TRANSCENDENT ( exceeding usual
the organization design)
• TQM engage every member of the • PRODUCT-BASED – Durability and
organization; reliability (Quantifiable or measurable)
• “Responsibility for quality” • USER-BASED – highest quality,
• “Quality teams” consumer preferences (perceived quality)
• TQM is based on quality management • MANUFACTURING-BASED – engineering
from the customer’s point of view. and manufacturing practices
(conformance)
Primary elements of TQM • VALUE-BASED-quality and value
 Recognition (Best-buy” product/service)
 Training
 Teamwork QualityTypes

In general, quality is meeting and exceeding
customer expectations at a price that he is willing to
pay to possess the product or service.
Quality of Design
- Market research and sales call analysis
- Simple and less expensive
- Must satisfy the requirements of the
customer
Quality of Conformance
- Defects control
- Quality control of raw materials to finished
products
- Level of uniformity and reliability
- Meeting set-standards
Quality of Performance
- Meeting customer expectations
- Ex. Customer survey (service)
- Test-drive (quality of product)
QUALITY LEVELS
• The organizational level quality
requirements revolve around its
customers’ quality requirements.
Process level
- Focused on the functions of
the departments.
PERFORMER/ JOB/ TASK/ DESIGN LEVEL
- It is vital to generate an individual
quality in the context of organization.
- Developing standards to measure each
individual key output is a necessity to
define quality.
- Areas to be measured to qualify individual
standard would include accuracy,
completeness, innovations, reliability, ease
of use, timeliness, volume, rate, cost and
flexibility.
- Productivity and cost are the requirements
for a customer-driven quality.
COST OF QUALITY
is a method that permits an organization to
decide on the level to which its resources are used
for activities that avoid poor quality, that assess the
quality of the organization’s products or services,
and the result from internal and external failures.
2 main components of cost of quality
- Cost Conformance – is the cost of
making available products or services
based on required standards.
- Cost of Non-Conformance - failure costs
linked with a process not functioning based
on required standards.
CHAPTER 2
Strategic Dimensions of QUALITY
DIMENSIONS of Product Quality
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived Quality
Performance
• Will the product do the intended job?
• Performance consists of the primary
operating characteristics of a product.
• Based on functional requirements not taste
• Ex. Car (acceleration, speed, comfort)
Features
• What does the product do?
• Features are added characteristics that
boost the attraction of the product or
service to the user.
• Qualities of a product like size, shape,
materials, functionalities, capabilities.
Reliability
• How often does the product fail?
• Product will not fail inside a particular time
period.
• Reliability may be directly connected to
performance
• More relevant to durable goods than to
product or services that are consumed
instantly.
• Mean Time Between Failures (MTBF)-
average time
Failure rate – frequency ex. Automobile failure
Conformance
• Is the product made exactly as the
designer intended?
• Extent a product’s design and operating
characteristics meet established
standards.
• Specifications are set and a target is set
Durability
• How long does the product last?
• Measure of how much use a person gets
from a product before it breaks down to
such point that replacement makes more
sense than continual repair.
• Measures the length of a product’s life.
• Durability and reliability are closely linked
 • Durability figures should be interpreted Meet the special requirements of
with care customers
Serviceability Service quality gap
• How easy is it to repair the product?
• Involves the consumer’s ease of obtaining
repair service like access to service
centers and/ or ease of self-service.
• The responsiveness of service personneL
ex. CRM
• Competence and ease of repair
• Company’s complaint handing procedures
Aesthetics
• What does the product look like?
• How a product looks, feels, sounds, tastes,
or smells.
• Personal judgement and indication of
individual preferences.
Perceived Quality
• What is the reputation of the company or
its product?
• Individuals’ subjective appraisal of
product’s or service’s attributes
• Images, advertising, and brand names are
vital
• Reputation is the primary stuff of perceived
quality. (Comparison of products)

Dimensions of Service Quality

• Tangibles -Associated to the environment

in which service is rendered to the
customers.

• Reliability -Ability to perform the promised

service dependably and accurately

• Responsiveness -Willingness to help

customers and provide prompt service.
Also captures the impression of flexibility
and ability to tailor service to customer
need.

• Assurance –Employees’ knowledge of

courtesy and the ability of the firm and its
employees to inspire trust and confidence.
Employees must be competent to gain
trust
To gain competitive advantage and
customers’ loyalty.

• Empathy -Refers to caring attitude that

organization provides toward customer.
Empathy is an additional plus that the trust
and confidence of the customers and at
the same time increase the loyalty.