ORGANIZATIONAL BEHAVIOR

(BY ROBBINS AND JUDGE)

CHAPTER-1
IMPORTANCE OF INTERPERSONAL SKILLS IN
THE WORKPLACE
Interpersonal Skills Result In…
• Understanding OB helps determine manager effectiveness
• Leadership and communication skills that are critical as a person progresses in a career
• Lower turnover of quality employees
• Applications for higher quality recruitment
• Better financial performance
MANAGER’S FUNCTIONS, ROLES AND SKILLS

Manager: Someone who gets things done through other people in

organizations.
• # Planning, organizing, leading, and controlling are the most often studied. (Fayol Management
Functions)

Managers work in Organizations

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 set of goals.
• Definitions of Management:
• One of the most important human activities is managing. Ever since people began forming groups to accomplish
aims they could not achieve as individuals, managing has been essential to ensure the coordination of individual
efforts. As society has come to rely increasingly on group efforts, and as many organized groups have become
large, the task of managers has been rising in importance.
• There are probably a huge number of definitions of management. Almost a century ago, F.W. Taylor (1856-1915)
defined management as “knowing exactly what people want to do, and then seeing that they do it in the best and
the cheapest way”. So, we can define management as follows:

• Henri Fayol (1841-1925): To manage is to forecast and plan, to organize, to command, to coordinate and control.
• P.F.Drucker (1909-): Management means whatever a manager does.
• M.P.Follet (1868-1933): Management is the act of getting things done through others.
• Stoner and Freeman: Management is the process of planning, organizing, leading, and controlling the work of
organization members and of using all available organizational resources to reach stated organizational goals.
(1995).
• Robbins and Coulter: Management is the process of coordinating work activities so that they are completed efficiently and
effectively with and through other people. (2002).
• Management is a process, which includes a set of activities (planning, decision making, organizing, staffing, leading,
controlling) directed at an organizational resources (human, financial, physical, information) with the aim of achieving
organizational goals in an efficient and effective manner.
•
• So, we can say that management is the process of designing and maintaining an environment in which individuals, working
together in groups, efficiently accomplish selected aims. By explaining the definitions we get some features of management:
• As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling.

• Management applies to any kind of organization.

• It applies to managers at all organizational levels.

• The aim of all managers is to create a surplus (profit)

• Management is concerned with productivity, effectiveness and efficiency.

• HIERARCHY/PYRAMID/LEVELS OF MANAGEMENT
• Top Management
• Top or senior management usually includes the chairperson of the board, the chief executive officer (CEO), Chief operating
officer (COO) and the senior vice presidents.
• This level of management:
• Establishes the objectives
• Formulate the actions to achieve the objectives
• Allocate the resources of business to achieve the objectives.
• Middle Management
• Middle management usually includes production Manager, Sales Manager Marketing Manager, Auditing Manager etc.
• This level of management:
• Responsible for implementing and achieving organizational objectives.
• Develop departmental objectives and actions for achieving those objectives.
• Supervising and coordinating the activities of lower level managers

• Supervisory Management
• Supervisory management includes Foremen, crew leader or supervisors etc.
• This level of management: Physically produce organization’s goods and services.
• MANAGERIAL ROLES

• The term Management Roles refers to specific categories of management behavior. Prominent
management pioneer Henry Mintzberg offers a number of interesting insights in to the nature of
managerial roles. This role falls in to the three basic categories.

• Inter-personal
• Informational
• Decisional
• Managerial role:
• FUNCTIONS OF MANAGERS
• Planning: Planning involves selecting missions and objectives and actions to achieve them; it requires
decision making that is choosing future courses of actions from among alternatives. Simply it refers to
setting an organization’s goal and deciding how best to achieve them.

• Planning includes-
• Determining the present status of the organization.
• Survey the environment.
• Set objectives.
• Forecast the future situations.
• State actions and resource needs.
• Evaluate proposed actions.
• Revise and adjust the plan.
• Communicate throughout the planning process.
• Organizing: Organizing involves grouping activities, assigning activities and giving the
authority necessary to carry out the activities. It is a that part of managing that involves
establishing an intentional structure of roles for people to fill in an organization.

• Organizing includes-

• Identify and defined work to be performed.

• Define position requirements.
• Assign work to be performed, accountability and extent of authority.
• Revise and adjust the organizational structure.
• Communicate throughout the organizing process.
• Staffing: Staffing is a process of determining human resource need and recruiting, selecting, training
and developing human resources. It is a process of filling, and keeping filled the positions in the
organization structure.

• Staffing includes-
• Determining human resource needs.
• Recruit potential employees.
• Select from the recruits.
• Train and develop the resources.
• Revise and adjust the quantity and quality of human resources.
• Communicate throughout the staffing process.
• Leading: Leading is the management function that involves motivation subordinates, influencing individuals and
groups so that they will contribute to achieve organizational objectives. Simply it refers to directing and guiding
human behavior toward the accomplishment of objectives.

• Leading includes-

• Communicate and explain the objective to subordinates.

• Assign performance standards.
• Coach and guide subordinates to meet performance standards.
• Reward subordinates based on performance.
• Provide a motivating environment.
• Revise and adjust the method of leadership.
• Communicate throughout the leadership process.
• Controlling: Controlling is a management function that involves monitoring actual
performance, comparing actual to standard and taking actions if necessary.

• Controlling includes-

• Establish standards.
• Monitor result and compare to standards.
• Correct deviations.
• Revise and adjust control methods.
• Communicate throughout the controlling process.
• MANAGEMENT SKILLS:
• Managers need certain skill to perform duties and activities associated with being a manager.

• Technical Skill: Technical skills include knowledge of and proficiency in a certain specialized field like engineering,
computers, accounting, or manufacturing. Thus it involves working with tools and specific techniques. This skill is more
important at lower levels of management. Since this managers are dealing directly with employees doing the
organization’s work.

• Human Skill: Human skill is the ability to work with the people; it is cooperative effort; it is teamwork; it is the creation
of environment in which people feel secured and free to express their opinions.

• Conceptual Skill: The ability to recognize significant element in a situation and understand the relationships among the
elements. Using this skill, manager must be able to see the organization as a whole, understand the relationship among
various sub-units and visualize how the organization feeds into broader environment.
• Design Skill: Design skill is the ability to solve problem in ways that will benefit the enterprise.
• Skills Needed at Different Management Levels:

• Top Managers Conceptual & Design Skills

• Middle Managers Human Skills

• Lower Level Managers Technical Skills

•
EFFECTIVE VERSUS SUCCESSFUL
MANAGERIAL ACTIVITIES
#Luthans and associates found that all managers engage in four managerial activities.
• Traditional management: DM, Planning, Controlling
• Communication: Exchange routine information and processing paperwork
• Human resource management: Motivating, Disciplining, Managing conflict, Staffing and
training
• Networking: Socializing, Politicking, and interacting with others
EFFECTIVE
VERSUS
SUCCESSFUL
MANAGERIAL
ACTIVITIES
 • OB is a field of study that investigates the impact
DEFINE that individuals, groups, and structure have on
“ORGANIZATIONAL behavior within organizations for the purpose of
BEHAVIOR” (OB) applying such knowledge toward improving an
organization’s effectiveness.
• Goals of Organizational Behavior
• The four goals of organizational behavior are to describe, understand, predict and control.
• To describe: The first objective is to describe how people behave under various conditions. For example, as a
manager, I have information about a particular junior officer that he comes office in late and leaves the office early.

• To understand: The second goal of organizational behavior is to understand why people behave as they do.
Managers have to understand the reasons behind a particular action. For example, as a manager, I must find out the
reason why the junior officer is coming late and going earlier.

• To predict: Predicting future behavior of employee is another goal of organizational behavior. Usually, managers
would have the capacity to predict why the employees are committed to the organization or not. For instance, I
have to realize why he wants to leave my organization, how I can hold the officer in my organization, what should
be done by me in this situation or what my role is etc
.
• To control: The final goal of organizational behavior is to control and develop a friendly
atmosphere for the organization. Since managers are responsible for the overall
performance of an organization, they must develop workers’ teamwork, skill and
commitment. Managers should take necessary action for themselves. In the above case, I
can increase the financial benefits of the officer if it is not satisfactory for him or I can
help him to solve his personal problem, or I can negotiate him to solve any organizational
problem.
• So, organizational behavior is a human tool for human benefit. It is mainly used to
analyses the human behavior in all types of organizations, such as business, government,
school and services organizations. So, in order to manage the human resources properly,
we need describe, understand, predict, and control human behaviour.
• Importance of Organizational Behavior:
• It builds better relationship by achieving people, organizational, and social objectives.
• It covers a wide array of human resource like behavior, training and development, change
management, leadership, teams etc.
• It brings coordination which is the essence of management.
• It improves goodwill of the organization.
• It helps to achieve objectives quickly.
• It makes optimum utilization of resources.
• It facilitates motivation.
• It leads to higher efficiency.
• It improves relations in the organization.
• It is multidisciplinary,
• Organizational Behavior – Objectives
• There are several objectives of organizational behavior and some of them are briefly stated here:

(i) To analyze different perspective and potentialities to create and develop the ethical values in an organization,
(ii) To analyze the potentialities towards the ways and means to conduct and organize the systems, methods and
approaches for organization development in an organization,
(iii) To analyze the potentialities to develop process, methods and approaches of formal and informal patterns
of organization and society,
(iv) To analyze how to make perspective methods and process of effective communication to formulate ethical
norms in an organization,
(v) To analyze various aspects and factors affecting the group cohesiveness,
(vi) To analyses the ways and means to develop different ethical aspects for group dynamism,
(vii) To analyze the mutual interest of individual and group. Mutual interest is represented by the statement
‘Organization needs people, and people also need organization’,
• viii) To analyze and evaluate the role of different key elements like people, structure,
technology interactive behavior and environment etc.
• (ix) To analyze and evaluate the behavioral approaches in organization. In context of that
all of them are based on ‘Art’ and ‘Science’,
• (x) To analyze different aspects of work environment which duly affects the behavioral
patterns and attitudes of persons.
 THE VALUE OF SYSTEMATIC STUDY

• Systematic Study of Behavior

1) Behavior generally is predictable if we know how the person perceived the situation and what is important
to him or her.
• Evidence-Based Management (EBM)
1) Complements systematic study.
2) Argues for managers to make decisions on evidence.
• Intuition
1) Systematic study and EBM add to intuition, or those “gut feelings” about “why I do what I do” and “what
makes others tick.”
If we make all decisions with intuition or gut instinct, we’re likely working with incomplete information.
MAJOR
BEHAVIORAL
SCIENCE
DISCIPLINES THAT
CONTRIBUTE TO OB
MAJOR BEHAVIORAL SCIENCE DISCIPLINES
THAT CONTRIBUTE TO OB
• Psychology: Psychology is the science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals.
• Social Psychology: Social psychology blends the concepts of psychology and sociology.
• Sociology: Sociologists study the social system in which individuals fill their roles; that
is, sociology studies people in relation to their fellow human beings.
• Anthropology: Anthropology is the study of societies to learn about human beings and
their activities.
THREE
LEVELS OF
ANALYSIS IN
OB MODEL
DEPENDENT VARIABLES

• Attitudes and stress: The evaluations employees make, ranging from positive to
negative, about objects, people, or events.
• Stress: An unpleasant psychological process that occurs in response to environmental
pressures.
• Task performance: The combination of effectiveness and efficiency at doing your core
job tasks is a reflection of your level of task performance.
OB VARIABLES

• Citizenship behavior: The discretionary behavior that is not part of an employee’s

formal job requirements, and that contributes to the psychological and social environment
of the workplace.
• Withdrawal behavior : The set of actions that employees take to separate themselves
from the organization.
• Group cohesion: The extent to which members of a group support and validate one
another at work.
OB VARIABLES OF INTEREST

• Group cohesion: The extent to which members of a group support and validate one
another at work.
• Group functioning: The quantity and quality of a group’s work output.
• Productivity: An organization is productive if it achieves its goals by transforming inputs
into outputs at the lowest cost. This requires both effectiveness and efficiency.
• Survival: Evidence that the organization is able to exist and grow over the long term.
VARIABLES
OF INTEREST
MANAGERIAL SUMMARY

• Organizational behavior uses systematic study to improve predictions of behavior over

intuition alone.
• Because people are different, we need to look at OB in a contingency framework, using
situational variables to explain cause-and-effect relationships.
• Organizational behavior offers specific insights to improve a manager’s people skills.
• OB helps managers to see the value of workforce diversity and practices that may need to
be changed in different countries.
• 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.