Organization Behavior

Where Managers Work

What Managers Do

Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to attain
goals
Organization?

Behaviour?
 Organization

A collection of two or more people who work

together and coordinate their actions to
achieve individual and organizational goals.
 Behaviour
Behaviour is a way of action. It is
the behaviour of the people
working in an organization to
achieve common goals or
objectives.
Organizational Behavior
Thus Organizational Behavior……..

Insert Figure 1.1 here

Goals of Organizational Behavior

Understand
organizational
events

Organizational
Behavior
Influence Predict
organizational organizational
events events
 Contributing toward an OB Discipline

Psychology
Social Psychology
Sociology
Anthropology
Political Science
Contributing toward an OB Discipline
Contributing toward an OB Discipline
Sociology studies people in relation to –

• their social environment and

• culture
Contributing toward an OB Discipline
Contributing toward an OB Discipline
Contributing toward an OB Discipline
Challenges and Opportunities for OB
• RESPONDING TO GLOBALIZATION
– Increased foreign assignments
– Working with people from different cultures
– Overseeing movement of jobs to countries with low-cost
labor
• MANAGING WORKFORCE DIVERSITY
– Embracing diversity
– Changing demographics
– For management practices, employee retention and greater
productivity, Recognizing and responding to differences
Challenges and Opportunities for OB
Major Workforce Diversity Categories
Gender
National
Disability Origin

Age
Religion
Race

Domestic
Partners
Sexual
orientation
Challenges and Opportunity for OB
• Improving Quality and Productivity
– Quality management (QM)
– Process reengineering
• Responding to the Labor Shortage
– Changing work force demographics
– Fewer skilled laborers
– Early retirements and older workers
• Improving Customer Service
– Increased expectation of service quality
– Customer-responsive cultures
 Challenges and Opportunity for OB

• Improving People Skills

• Empowering People
• Coping with “Temporariness”
• Stimulate Innovation and tolerance
• Helping Employees Balance Work/Life Conflicts
• Creating positive environment
• Improving Ethical Behavior
 Basic assumptions of OB
• Individuals are different
• Individual- a whole person outlook
• Behavior is caused
• Value people
• Organization is a social system
• Mutuality of interests
 Emerging Trends in OB
From
Closed system
Materialistic orientation
Centralized power
Extrinsic motivation
Negative attitude about
people
Focus on organizational needs
Imposed discipline
Authoritative managerial role
To
Open system
Human orientation
Distributed power
Intrinsic motivation
Positive attitude about people
Balance focus on employee
and organizational needs
Self and team support
discipline
Managerial role of leadership
 OB Model- the Variables

• Independent Variable
• Dependent Variable
IV Effect
Causes IV
IV
IV DV
IV
IV
The Dependent Variables
 The Independent Variables

Independent
Variables

Individual-Level Group-Level Organization

Variables Variables System-Level
Variables
 The independent variables of OB MODEL

• Independent Variables :
– Individual level variables: Biographical
characteristics, ability, value, attitudes, personality,
learning, perception and emotions. Etc.
– Group level Variables: Group communication,
leadership, conflict, work teams, power conflict,
group structures, group decision-making
– Organizational level variables: HR Practices, policies,
organizational structure and design, organization
culture
 The dependent variables of OB MODEL

• Dependent Variables :
– Productivity
– Absenteeism
– Turnover
– Deviant workplace behavior
– Organizational Citizenship Behavior
– Job satisfaction
OB Model
 Determinants of OB

• Beliefs
• Attitudes
• Values
• Emotions
 Beliefs

• Ideas about someone or something and the

conclusion people draw about them.
 Attitudes

• Collection of beliefs, feelings, and behavioral

components.
• Evaluative statements or judgments
concerning objects, people or events
 Components of an Attitude
1. Cognitive Component of an Attitude
– The opinion on belief segment of an attitude
2. Affective Component of an Attitude
– Affect is the emotional or feeling segment of an
attitude
– It sets the stage for the more critical part of an
attitude
3. Behavioral Component of an Attitude
– It refers to an intention to behave in a certain
way toward someone or something
 Types of Attitudes in OB

• Job Satisfaction
• Job Involvement
• Organizational Commitment
 Job Satisfaction

• Job satisfaction is the level of contentment a person feels

regarding his or her job. This feeling is mainly based on an
individual’s perception of satisfaction.

• A person with a high level of job satisfaction holds positive

attitudes about the job, while a person who is dissatisfied
with his or her job holds a negative attitude about the job.

• A person having a negative attitude shows a personality

disposition which is inclined to experience nervousness,
tension, upset, distress etc. whereas those with a positive
attitude will feel happy themselves, others and their work.
• Generally, it is deemed a high level of job
satisfaction means positive attitudes towards
the job and vice versa.
• When people speak of employee attitudes,
more often than not they mean job
satisfaction.
• In fact, the two are frequently used
interchangeably.
 Job Involvement

• Job involvement refers to the degree with which an

individual identifies psychologically with his or her job and
perceives his or her perceived performance level important
to self-worth.

• High levels of job involvement have been found to be

related to fewer absences and lower resignation rates.

• However, it seems to more consistently predict turnover

than absenteeism, according to for as much as 16 percent
of the variance in the former.
 Organizational Commitment

• The last job-attitude refers to organizational commitment. It is

understood as one’s identification with his or her organization
and feels proud of being its employee.

• It is defined as a state in which an employee identifies with a

particular organization and, its goals, and wishes to maintain
membership in the organization.

• Different studies demonstrate that an individual’s level of

organizational commitment is a better indicator of turnover
than the far more frequently used job satisfaction predictor,
explaining as much as 34 percent of the variance.

• Basically, turnover and absenteeism are low when employees

have an organizational commitment.
 Values

• Value is the basic convictions that a specific

mode of conduct or end-state of existence is
personally or socially preferable to an opposite
or converse mode of conduct or end-state of
existence
 Types of Values
1. Terminal Values
2. Instrumental Values

• People in the same occupations or categories

tend to hold similar values
Terminal Values

• These are values that we think are most important or most desirable.
• These refer to desirable end states of existence, the goals a person
would like to achieve during his or her lifetime.
• They include happiness, self-respect, recognition, inner harmony,
leading a prosperous life, and professional excellence.

Instrumental Values

• Instrumental values deal with views on acceptable modes of conduct

or means of achieving the terminal values.
• These include being honest, sincere, ethical, and being ambitious.
These values are more focused on personality traits and character.
 Values Across Cultures

Values differ across cultures

1. Power distance- Mexico, Argentina, France

2. High context vs low context cultures
3. Uncertainty avoidance
4. Individualism- Collectivism
5. Masculinity-Feminity- Japan, Italy vs Sweden,
Netherlands
 Value for
• Time
• Friendship
• Relationship