MBA 711-Chapter 1

DEBRE BERIHAN UNIVERSITY
COLLEGE OF BUSINESS AND

ECONOMICS
DEPARTMENT OF
MANAGEMENT
MASTERS OF BUSINESS
ADMINISTRATION
(MBA)PROGRAM
Advanced Organizational Behavior
(MBA 711)
1
Advanced Organizational Behavior (MBA 711)
Course Description
 The course organizational behavior is a field of study that
investigates the impact those individuals, groups and
organization structure has on behavior within organizations;
and the application of this knowledge to improve productivity
and job satisfaction in an organization.
 Organizational behavior uses systematic study to improve
behavior so as to increase productivity and employee
satisfaction.
 This course deals with theories of organizations, environment
and organizational goal setting, organizational Behavior,
individual attitude and perceptions, individual and group
attributes in organizational behaviors, group dynamics, group
and team formation, power and politics, conflict, and conflict
management.
Course Objective
 The objective of this course is to Acquaint students
with basic skill that help them to better explain,
predict, influence and manage human behavior in
the organization. After completing this course
students are expected to:
 Use a set of conceptual schemes, constructs and facts in
explaining managerial issues related to organizational
functioning.
 Attain an orientation of change as a desirable outcome for
organizations and persons within organizations and identify
conditions for stimulating change and models for evaluating
change.
CHAPTER ONE: AN OVER VIEW OF ORGANIZATIONAL BEHAVIOR
1.1. What is organizational behavior?
1.2. The three basic units of analysis in OB
1.3. A review of a managers job and it relation to the study of OB
1.4. The characteristics of OB
1.5. Contributing disciplines to OB
1.6. Management and organizational behavior in the 21 st century
CHAPTER TWO: FOUNDATION OF INDIVIDUAL BEHAVIOR AND LEARNING IN AN
ORGANIZATION
2.1. Perception
2.2. Attitude
2.2.1. Component of attitude
2.2.2. How attitudes are formed
2.2.3. Source of attitude
2.2.4. Types of attitude
2.2.5. Attitudes and consistenc y
2.3. Personality
2.3.1. Personality determinants
2.3.2. Major personality attributes influencing OB
2.3.3. Matching personality and job
2.4. Learning
2.4.1. Types of learning
2.4.2. Strategies of reinforcement, punishment and extinction
CHAPTER THREE - FOUNDATION OF GROUP BEHAVIOR

3.1. Defining and classifying team and/or group
3.2. Why do people form and join team/groups?
3.3. Stages in team/group development
3.4. Obstacle to team/group productivity
3.5. Increasing team/group productivity
3.6. Group behavior /group dynamics
3.7. Implication for performance and satisfaction
CHAPTER FOUR - MOTIVATION CONCEPTS AND THEIR APPLICATIONS
4.1. What is motivation?
4.2. Early Theories of Motivation
4.3. Contemporary theories of motivation
4.4. Implication of motivation for performance and satisfaction
CHAPTER FIVE - MANAGEMENT OF ORGANIZATIONAL CONFLICT
5.1. Definition of conflict
5.2. Functional Vs dysfunctional conflict
5.3 Nature of conflict in an organization
5.4. Cause of conflict in organizations
5.5. Conflict management strategies
CHAPTER SIX - STRESS MANAGEMENT
6.1. What is stress?
6.2. Understanding sources of stress and its consequences
6.3. Stress management strategies
6.4. Implications for performance and satisfaction
CHAPTER SEVEN - CULTURE AND DIVERSITY
7.1 Culture and cultural diversity
7.2. Globalization and people at work
CHAPTER EIGHT - POWER AND POLITICS IN AN ORGANIZATION
8.1. A definition of power
8.2. Contrasting leadership and power
8.3. Base and sources of power
8.4. Power in group coalitions
CHAPTER NINE - ORGANIZATIONAL DESIGN AND STRUCTURE
9.1. The essence of organizational design and structure
9.2. Key organization design process
9.3. Types of organization structure
9.4 Technology and job design
References:
 Schermerhorn R, John. Jr. " management and
organizational behaviors"
 Corbert J Marin Critical Cases in Organization and
Management
 AgrawallR.D,Organization and management
 Robins: organizational Behavior
 Nelson and Campbell Quck : organizational behavior
 Davis and Newstrom: Human behavior at work:
organization behavior
 Mcshane and van glinow : Organization Behavior
 Any other Books in organizational behavior can be help full.
Individual Assignment One: Article Review

Max Mark: 20%
 Maximum 1500 words
GUIDILINE FOR ARTICLE REVIEW
 Select any reputable research articles from any journal sites
related to the concept to OB, culture or individual and group
behavior from any journal in the field of management.
 The articles must be published in recent years (2015 up to
2023)
 Read the articles carefully then make an abridged version in
a maximum of 1500 words.
 Your write-ups should be based on the following topics and it
will be marked accordingly.
Part I: Article summary

Write a brief review of the article’s aim and purpose by addressing the following
questions.
• What is the research topic, and why it is (scientifically and/or socially)
important?
• What is the research gap or knowledge gap as identified by the article’s
literature review?
• How does the paper aim to fill in that research gap?
• What are the major findings?
Part II: Assessment of data quality
• What is the source of data for the article? Describe the unit of analysis, time
period covered by the data, the number of observations, the key variables,
procedure of data collection etc.
• How appropriate is the data for the research topic?
• What are the potential limitations of the data (including issues in data
collection and sample design, measurement of variables, missing values
etc.)?
Part III: Assessment of research design and method
• How suitable is the research design for the research goal of the article?
• Is the research method suited for the data?
• What are the statistical (or data) assumptions of the research method (or the specific
model)?
• Are you satisfied with the goodness-of-fit of the estimated models? Explain using
specific results.
• What kinds of model diagnostics were implemented, and what kinds of (additional or
substitute) diagnostics would you recommend?
• How many of the hypothesized relationships (if any) are supported by the analysis?
Are there sufficient explanations for negative results (i.e. for hypothesis that were not
supported by the analysis?)
Part IV: Critical evaluation of the article
• In terms of overall quality, and especially with respect to research design and
method, what are the major strengths of the article?
• In terms of overall quality, and especially with respect to research design and
method, what are the major limitations of the article?
• If you were to write a follow up paper on this topic, what potential improvements or
extensions would you do in your article (in terms of data, research design, research
method, or presentation)?
Group Assignment : literature Review and Company Analysis

 Max Mark: 30% (20% for question 1 and 10 % for question
2)
Guideline for company analysis and literature review
1.Search for different electronic or hard copy book on
Organizational Behavior and review on the following chapters and
write a theoretical foundation (at least a total of 20 pages).
 Stress Management: Group 1
 Culture and Diversity: Group 2
 Power and Politics in an Organization: Group 3
 Organizational Design and Structure: Group 4
2. Analyze the Organizational Behavior of a Business Company of your choice by

focusing on the above four topics (Show practical applications of the above topic in
organizations)
Tips for analysis
 How the organization does philosophize the concept of conflict, stress, diversity and
politics in the organization?
 How the management of the organization does manage organizational conflict,
stress, diversity, and power and politics? (Strategies adopted by the management).
 What are the most common causes of Conflict, Stress and Organizational politics
manifested in the organization?
 What are various steps that a manager should take to manage conflict,
stress, diversity and organizational politics among employees? (Strategies must
adopted by the management).
 What are various steps that employees should take to manage conflict,
stress, diversity and organizational politics among employees? (Strategies must
adopted by the employee).
 Write Summary, conclusion and recommendation
 The analysis shall be compiled in three to five pages.
Outline
CHAPTER ONE: AN OVER VIEW OF
ORGANIZATIONAL BEHAVIOR
 What is organizational behavior?
 The three basic units of analysis in OB
 A review of a manager’s job and it relation
to the study of OB
 The characteristics of OB
 Contributing disciplines to OB
 Management and organizational behavior
in the 21st century
13
Learning Objectives
When you complete this chapter you
should be able to:
1. Define organizational behavior (OB).
2. Differentiate between the three levels at
which organizational behavior is
examined
3. Identify the major disciplines that
contribute to OB.
4. List the major challenges and
opportunities for organizations today
14
What is an Organization?
 We can define the term Organization as two or more individuals
who are interacting with each other within a deliberately
structured set up and working in an interdependent way to
achieve some common objective/s.
 Organizations are not buildings or other physical structures.
 Rather organizations are people who work together to achieve a
set of goals.
 An organization is a collection of people who work together to
achieve individual and organizational goals
 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.
15
What is Organizational Behavior?
 Organizational behavior (OB): the study of factors
that have an impact on how people and groups act,
think, feel, and respond to work and organizations,
and how organizations respond to their environments
16
A field of study that investigates the
impact that individuals, groups, and
structure have on behavior within
organizations, for the purpose of applying
such knowledge toward improving an
organization’s effectiveness.
OB has three main elements;
It is an investigative study of individuals
and groups,
The impact of organizational structure on
human behavior and,
The application of knowledge to achieve
organizational effectiveness
17
Intuition and Systematic Study
• feelings
Intuition • Individual observation
• Common sense
• Looks at relationships
Systematic • Scientific evidence
Study • Predicts behaviors
The two are complementary means of predicting behavior.

18
Why Do We Study OB?
To learn about yourself and how

to deal with others
You are part of an organization
now, and will continue to be a part
of various organizations
Organizations are increasingly
expecting individuals to be able to
work in teams, at least some of the
time
Some of you may want to be
managers or entrepreneurs
19
Basic OB Model/ Three Levels of Analysis
 A model is an abstraction of reality – a
simplified representation of some real-world
phenomenon.
 Our OB model has three levels of analysis
 Each level is constructed on the prior level
MACRO OB
MICRO OB
 It proposes three levels of analysis in
20
OB.
The first level of analysis, called micro OB, studies
the individual.
M
It is the smallest possible level of analysis in A
organizations and includes topics such as perception,
personality, motivation, and learning.
The second and middle level of analysis in OB is
the small group that is made up of individual M
employees within an organization. I
 The study of small groups in OB includes issues of

group size and composition, trust, conflict
management, team building, group decision making,
and leadership.
21
The third level of analysis in OB, called M
A
macro OB, is concerned with larger groups,
such as departments, and organizational
processes.
 Macro OB topics include issues such as

the design and structure of organizations,
organizational culture and strategy,
organizational power and politics, change,
and organizational effectiveness.
M
Managers must understand their I
organization at all three levels of analysis to

meet the daily challenges they face.
22
Types of Study Variables
 OB researchers draw conclusions about causal relationships of
two (dependent and independent) variables.
Independent (X) Dependent (Y)
 The presumed cause
of the change in the
 This is the y
response to X (the
independent
dependent variable
variable).
(Y).
It is what the OB
x

 This is the variable
researchers want
that OB researchers
to predict or
manipulate to observe
explain.
the changes in Y.
23
The Dependent Variables
Productivity
 Transforming inputs to outputs at lowest cost.
Includes the concepts of effectiveness
(achievement of goals) and efficiency (meeting
goals at a low cost).
Absenteeism
 Failure to report to work – a huge cost to
employers.
Turnover
 Voluntary and involuntary permanent
withdrawal from an organization.
Deviant Workplace Behavior
 Voluntary behavior that violates significant
organizational norms and thereby threatens
the well-being of the organization and/or any 24
of its members.
The Dependent Variables
Organizational Citizenship Behavior
(OCB)
 Discretionary behavior that is not part
of an employee’s formal job
requirements, but that nevertheless
promotes the effective functioning of
the organization.
Job Satisfaction
 A general attitude (not a behavior)
toward one’s job; a positive feeling of
one's job resulting from an evaluation
of its characteristics.
25
The Independent Variables
 The independent variable (X) can be at any of these
three levels in this model:
Independent
Independent
Variables
VariablesCan
CanBe
Be
Individual-Level Group-Level Organization

Organization
Individual-Level Group-Level System-Level
Variables
Variables Variables
Variables System-Level
Variables
Variables
26
The Independent Variables
 Individual
Biographical characteristics, personality and emotions,
values and attitudes, ability, perception, motivation,
individual learning, and individual decision making
 Group
Communication, group decision making, leadership and
trust, group structure, conflict, power and politics, and work
teams
 Organization System
Organizational culture, human resource policies and
practices, and organizational structure and design
27
Dependent
Variables (Y)
Three Levels
Independent
Variables (X)
28
Contributing Disciplines
What do you think some of the field of studies that
contribute for OB?
 Organizational behavior is an applied behavioral
science that is built upon contributions from a number
of behavioral disciplines.
Many behavioral sciences Psychology
have contributed to the

development of Social
Psychology
Organizational
Behavior Sociology Anthropology
29
1. Psychology
Psychology is an applied science, that seeks to measure, explain,
and sometimes change the behavior of humans and other animals.
 Unit of Analysis: Individual
 Contributions to OB: Learning, motivation, personality, emotions,
perception, Training, leadership effectiveness, job satisfaction,
Individual decision making, performance appraisal, attitude
measurement, Employee selection, work design, and work stress
Studies of these theories can improve personal skills, bring
change in attitude and develop positive approach to organizational
systems.
Various psychological tests are conducted in the organizations
for selection of employees, measuring personality attributes and
aptitude.
30
2. Social psychology
An area within psychology that
blends concepts from psychology and
sociology and that focuses on the
influence of people on one another.
Unit of Analysis:
Group
Contributions to OB:
Behavioral change
Attitude change
Communication
Group processes
Group decision making
31
3. Sociology
The study of people in relation to their fellow human beings.
Science of Sociology studies the impact of culture on group behavior.
 Unit of Analysis:
 Group
 Organizational System
 Group dynamics  Formal organization
 Work teams theory
 Communication
 Organizational technology
 Organizational change
 Power  Organizational culture
 Conflict
 Intergroup behavior
32
4. Anthropology
 It is a field of study relating to human activities in various cultural and
environmental frameworks.
The study of societies to learn about human beings and their activities
 Unit of Analysis:
 Organizational System
 Group
 Organizational culture
 Organizational environment
 Comparative values
 Comparative attitudes
 Cross-cultural analysis
33
5. Political science
 Political science studies the behavior of individuals and
groups within a political environment.
 Specific topics of concern here include structuring of
conflict, allocation of power, and how people manipulate
power for individual self- interest.
 Stability of government at national level is one major

factor for promotion of international business, financial
investments, expansion and employment.
 Various government rules and regulations play a very
decisive role in growth of the organization. All
organizations have to be abide by the rules of the
government of the day.
34
Characteristics of Organizational Behavior
 It is a way of thinking about individuals,
groups and organizations
 It is multidisciplinary: it uses principles,
theories, models and methods from other
disciplines.
 There is a distinctly humanistic-orientation;
people and their attitudes, perceptions,
learning capacities, feelings and goals are of
major importance.
35
Characteristics of Organizational Behavior
 It is a performance oriented: it deals with the factors which
affecting performance and how it can be improved.
 It is application-oriented/problem solving: OB is concerned
with providing useful answers to questions, problems,
challenges, threats which arise when managing
organizations.
 It is a systematic study: it uses scientific methods. It is
important in studying relationships, attempting to examine
causes and effects and drawing conclusions based on
scientific evidences. 36
Organizational Behavior and Management
 Management is the process of planning, organizing,
leading, and controlling an organization’s human,
financial, material, and other resources to increase
its effectiveness
 Managers are in a good position to improve their
managerial abilities by understanding
organizational behavior.
 Managers are Individuals who achieve goals through other
people.
Management Activities:
Make decisions
Allocate resources
Direct activities of others to attain goals
37
 An effective manager is one whose organizational unit,
group, or team consistently achieves its goals while
members remain capable, committed, and enthusiastic.
 This definition focuses attention on two key results.
The first is task performance—the quality and
quantity of the work produced or the services provided
by the work unit as a whole.
 The second is job satisfaction—how people feel about
their work and the work setting. Just as a valuable
machine should not be allowed to break down for lack
of proper maintenance, the valuable contributions of
the human resource should never be lost for lack of
proper care.
38
 Accordingly, OB directs a manager’s attention to
such matters as job satisfaction, job involvement,
and organizational commitment, as well as
measures of actual task performance.
 The job of any manager or team leader is largely
one of adding value to the work setting by doing
things that help others to accomplish their tasks.
 A traditional and still relevant way of describing
this job is as a set of tasks or functions that must
be performed constantly and often
simultaneously.
39
Management Functions
 Planning: A process that includes
defining goals, establishing strategy, and
developing plans to coordinate activities.
 Organizing: Determining what tasks are
to be done, who is to do them, how the
tasks are to be grouped, who reports to
whom, and where decisions are to be made.
 Leading: A function that includes
motivating employees, directing others,
selecting the most effective communication
channels, and resolving conflicts.
 Controlling: Monitoring activities to
ensure they are being accomplished as
planned and correcting any significant
40
deviations.
Management and organizational behavior in the
21st century
Organizational Level
 OB considers that organizations are Productivity
•
made up of levels, moving up from

Developing
• effective employees
Global
• competition
Managing
• in the global village
the individual, to the group, to the
entire organizational structure.
Group Level
 Each level contributes to the variety Working
• with others
of activities that occur in today’s Workforce
• diversity Workplace
workplace.
 When we look at the different levels
Individual Level
in the organization, we recognize that
Job
• satisfaction
each has challenges that can affect Empowerment
•
Behaving
• ethically
how the levels above and/or below
might operate. We consider the
challenges at the individual, group,
and organizational levels. 41
21st century
Challenges at the Individual Level
At the individual level, managers and
employees need to learn how to work with
people who may be different from themselves in
a variety of dimensions, including personality,
perception, values, and attitudes.
Challenges at the Group Level
 The behavior of people in groups is more than
the sum total of all the individuals acting in
their own way. People’s behavior when they
are in a group differs from their behavior
when they are alone. Therefore, the next step
in developing an understanding of OB is the 42
study of group behavior.
21st century
Challenges at the Group Level
 Some of the challenges that
occur at the group level are:
 Working With Others-Much of
the success in any job involves
developing good interpersonal,
or “people” skills.
 Workforce Diversity- gender,
race, ethnicity, sexual
orientation, and age
43
21st century
Challenges at the Organizational Level
 OB becomes more complex when we move to the

organizational level of analysis.
 Just as groups are not the sum total of individuals,
so organizations are not the sum total of
individuals and groups.
 There are many more interacting factors that place
constraints on individual and group behavior.
44
21st century
Changing Social/ Cultural

Environment
Evolving Global
Environment
Advancing Information
Technology
Shifting Work/
Employment Relationships
45
21st century
1: Changing Social/ Cultural Environment
 National culture • Fairness and
 Organizational ethics and well-being Justice
 Diverse work force • Decision-Making
2: Evolving Global Environment and Performance
 Understanding Global Differences • Flexibility
 Improve Organization’s Behaviors and Procedures in
Response to Those Differences
3: Advancing Information Technology
 Information, Knowledge
 Information Technology
 Organizational Learning
 Intranets, Creativity, Innovation
4: Shifting Work/ Employment Relationships
 Downsizing
 Empowerment and Self-Managed Teams 46
 Contingent Workers, Outsourcing
Advanced Organizational Behavior
Thank you for

your kind
attention!!!
47

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DEBRE BERIHAN UNIVERSITY

COLLEGE OF BUSINESS AND

CHAPTER THREE - FOUNDATION OF GROUP BEHAVIOR

Individual Assignment One: Article Review

Part I: Article summary

Group Assignment : literature Review and Company Analysis

2. Analyze the Organizational Behavior of a Business Company of your choice by

The two are complementary means of predicting behavior.

To learn about yourself and how

 The study of small groups in OB includes issues of

 Macro OB topics include issues such as

organization at all three levels of analysis to

Individual-Level Group-Level Organization

have contributed to the

 Stability of government at national level is one major

made up of levels, moving up from

 OB becomes more complex when we move to the

Changing Social/ Cultural

Thank you for

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