Mr. B.

Naresh
Dept. of Mechanical Engineering
GITAM
Levels of OB

Organizational
level
MODULE – IV, V

Group Level
MODULE - III

Individual
level
MODULE – I, II
 Components of OB

Understanding
and managing OB
requires studying

Individuals in Groups and Organizational

organization Teams Processes
OBJECTIVES AFTER STUDYING THIS CHAPTER AND
LISTENING TO MY LECTUER,I HOPE THAT
YOU WILL BE ABLE TO:

1. Define organizational behavior (OB).

2. Describe what managers do.
LEARNING

3. Describe the managers functions, roles and

skills.
4. Show the value to OB of systematic study
5. Contrast the three components of an attitude.
6. Summarize the relationship between attitude
and behavior.
7. Compare and contrast the major job attitudes.
ORGANIZATIONAL BEHAVIOR
M O D U L E - I

What is

E
L
Organizational I

U
D
O
Behavior?
M
 What is organizational behavior (OB)?

 OB is the study of what people think, feel, and do in

and around organizations.

 OB is the study of what people do in an organization

and how their behavior affects the organizations
performance.

 Its focus is on employee behavior, decisions,

perceptions and emotional responses.
 Introduction – What is Organization ?

 A group of people united by a common purpose

 An entity, an ongoing business unit engaged in

utilizing resources to create a result.

 A structure of relationships between various

positions in an enterprise.

 A process by which employees, facilities and tasks

are related to each other, with a view to achieve
specific goals.
Introduction
 Organizations have a variety of goals.
 They usually direct their energies and resources to achieve these goals.
 A profit-oriented business firm – ex: might have a return-on-
investment goal
 A hospital – goals centered around patient care
 Educational institute – establish goals for teaching, research and
service.

organization

Non-human resource
Human resource
Ex: plant, equipment, land, money etc

 Management is the force that unifies human as well as non-human

resources in the service of organizational goals.
 Iceberg
Why OB is Formal aspects (overt)
Important? Technology
customers
Formal goals Organization design
Financial resources Rules and regulations

Surface competencies and skills

Behavioural aspects (covert)

Attitudes
Communication patterns
Informal team processes
Personality
Conflict
Political behaviour
Underlying competencies and skills
 Nature of Organizational Behavior (OB)

OB is concerned with the study of what people do in an organization and how

their behavior affects the organization’s performance
human motivation, personality
characteristics.

Psychology
OB Political
Science
(study of human
behavior) (understand
arrangement in
organizations)

Sociology
(social behavior)
Economics

Social Anthropology
psychology (science of
mankind & study of
(human behavior) human behavior )
Psychology Psychology is the study of human behavior which
tries to identify the characteristics of individuals and provides an
understanding why an individual behaves in a particular way.

This thus provides us with useful insight into areas such as

human motivation, perceptual processes or personality
characteristics.

Sociology Sociology is the study of social behavior,

relationships among social groups and societies, and the
maintenance of social order. The main focus of attention is on
the social system.

This helps us to appreciate the functioning of individuals

within the organization which is essentially a socio-technical
entity.
Social psychology
Social psychology is the study of human behavior in the context
of social situations. This essentially addresses the problem of
understanding the typical behavioral patterns to be expected
from an individual when he takes part in a group.

Anthropology
Anthropology is the science of mankind and the study of
human behavior as a whole.
The main focus of attention is on the cultural system, beliefs,
customs, ideas and values within a group or society and the
comparison of behavior among different cultures.
In the context of today’s organizational scenario. It is very
important to appreciate the differences that exist among people
coming from different cultural backgrounds as people are often
found to work with others from the other side of the globe.
Economics
Any organization to survive and sustain must be aware of the
economic viability of their effort.
This applies even to the non-profit and voluntary organizations
as well.

Political Science

Although frequently overlooked, the contributions of political

scientists are significant to the understand arrangement in
organizations.
It studies individuals and groups within specific conditions
concerning the power dynamics.
Important topics under here include structuring of Conflict,
allocation of power and how people manipulate power for
individual self-interest etc.
What Managers Do

Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others
to attain goals
 Where Managers Work

Manufacturing and service firms are organizations, and so are

 Schools, Hospitals, Churches,
 Military units, retail stores,
 Police departments and
 Local, state and central government agencies.
Management Functions

Planning Organizing

Management
Functions

Controlling Leading
Management Functions (cont’d)
Management Functions (cont’d)
Management Functions (cont’d)
Management Functions (cont’d)
Mintzberg’s Managerial Roles

EXHIBIT 1-1a
Mintzberg’s Managerial Roles (cont’d)

EXHIBIT 1-1b
Mintzberg’s Managerial Roles (cont’d)

EXHIBIT 1-1c
Management skills

 Technical skills
 Human skills
 Conceptual skills
 Management skills

 Technical skills
– The ability to apply specialized knowledge or
expertise.

– Job specific knowledge and techniques

Eg: Manufacturing,
accounting,
programming,
marketing etc.,
 Management skills

 Human skills
– The ability to work with, understand and
motivate other people, both individually and in
groups.

– Control the behavior of individual and groups.

Management skills

 Conceptual skills
– The mental ability to analyze and diagnose
complex situations.

– Ability to distinguish between cause and effect.

 Planning and organizing require a high level

of conceptual skill.
Cause and effect diagram (conceptual skill)
Cause and effect diagram (conceptual skill)
 Systematic study

Systematic study means looking at relationships,

attempting to attribute causes and effects, and
drawing conclusions based on scientific evidence.

It provides a means to predict behaviors.

 Foundations of Individual Behavior

Here we look at how individual differences in the form

of

 Ability (which includes intelligence) and

 Biographical characteristics (such as gender, age,
race and tenure) affect employee performance and
satisfaction.
 Ability

Ability refers to an individual’s capacity to perform the

various tasks in a job.

It is a current assessment of what one can do.

Individual overall abilities are made up of two sets of

factors:

intellectual and physical.

 Intellectual Abilities:

Intellectual abilities are those needed to perform mental

activities.
 IQ tests are designed to ascertain one’s general intellectual
abilities. Ex: popular college admission tests such as the SAT,
GMAT, and LSAT.
 Jobs differ in the demands they place on incumbents to use their
intellectual abilities.
Ex: More general intelligence and verbal abilities will be
necessary to perform the job successfully.
 New research in this area focuses on “multiple intelligences,”
which breaks down intelligence into its four sub-parts:
cognitive, social, emotional, and cultural.
 Dimensions of Intellectual Ability

 Number aptitude - an individual's capacity to quickly perform mathematical

operations

Ex: Accountant: Computing the sales tax on a set of items

 Dimensions of Intellectual Ability

 Verbal comprehension - ability to understand spoken language

Ex: Plant manager: Following corporate policies on hiring

 Perceptual speed - ability to quickly and accurately compare letters,

numbers, objects, pictures, or patterns

Ex: Fire investigator: Identifying clues to support a charge of arson

Dimensions of Intellectual Ability

 Inductive reasoning - a method of reasoning in which the premises are

viewed as supplying some evidence for the truth of the conclusion

Market researcher: Forecasting demand for a product in the next time period
Dimensions of Intellectual Ability

 Deductive reasoning - a logical process in which a conclusion is based

on the concordance of multiple premises (statements) that are generally
assumed to be true.

Supervisor: Choosing between two different suggestions offered by employees

Dimensions of Intellectual Ability

 Deductive reasoning - a logical process in which a conclusion is based

on the concordance of multiple premises (statements) that are generally
assumed to be true.
Examples:

1. All students eat pizza.

SURYA is a student at GITAM.
Therefore, Surya eats pizza.

2. All athletes work out in the gym.

Barry Bonds is an athlete.
Therefore, Barry Bonds works out in the gym.

3. All math teachers are over 7 feet tall.

Mr. P is a math teacher.
Therefore, Mr. P is over 7 feet tall.

 The argument is valid, but is certainly not true.

Deductive vs. Inductive Reasoning

The difference:

inductive reasoning uses patterns to arrive at a

conclusion (conjecture)

deductive reasoning uses facts, rules, definitions

or properties to arrive at a conclusion.
Dimensions of Intellectual Ability

 Spatial visualization - ability to mentally manipulate 2-dimensional and 3-

dimensional figures

Interior decorator: Redecorating an office

Dimensions of Intellectual Ability

 Memory - something remembered from the past

Salesperson: Remembering the names of customers

Dimensions of Intellectual Ability

 Memory - something remembered from the past

Salesperson: Remembering the names of customers

Physical Abilities

The capacity to do task demanding stamina, dexterity, strength, and

similar characteristics.
Nine Physical Abilities
 Strength Factors
 Dynamic strength
 Trunk strength
 Static strength
 Explosive strength
 Flexibility Factors
 Extent flexibility
 Dynamic flexibility
 Other Factors
 Body coordination
 Balance
 Stamina
Physical Abilities
 Strength Factors

Ability to exert muscular force

repeatedly or continuously over time

Ability to exert force against

external objects
Physical Abilities
 Strength Factors

Ability to exert muscular strength

using the trunk
(particularly abdominal) muscles

Ability to expend a maximum of

energy in one or a series of
explosive acts
Physical Abilities
 Flexibility Factors

Ability to move the trunk and

back muscles as far as possible

Ability to make rapid, repeated

flexing movements
 Physical Abilities
 Other Factors

Ability to coordinate Ability to maintain Ability to continue

the simultaneous equilibrium despite maximum effort
actions of different forces pulling off requiring prolonged
parts of the body balance effort over time
Biographical characteristics

 Finding and analyzing the variables that have an impact

on employee productivity, absence, turnover, and job
satisfaction.

 Biographical characteristics such as:

– Age

– Gender

– Disability

– Length of tenure.
Biographical characteristics
Age –
•The relationship between age and job performance is increasing in
importance. Also, the older you get, the less likely you are to quit your job.
• The age-absence relationship is partially a function of whether the absence
is avoidable or unavoidable.
• In general, older employees have lower rates of avoidable absence.
•Reviews of the research find that age and job performance are unrelated.
Most studies indicate a positive association between age and satisfaction, at
least up to age 60.
Other studies, however, have found a U-shaped relationship. When
the two types, professional and nonprofessional employees, are separated,
satisfaction tends to continually increase among professionals as they age,
whereas it falls among nonprofessionals during middle age and then rises
again in the later years.
Biographical characteristics

Gender
The evidence suggests that there are few, if any, important
differences between men and women that will affect their job
performance.

There are no consistent male-female differences in problem-solving

ability, analytical skills, competitive drive, motivation, sociability, or
learning ability.

There is a difference in terms of preference for work schedules.

Some studies have found that women have higher turnover rates;
others have found no difference.

The research on absence consistently indicates that women have

higher rates of absenteeism than men do.
Biographical characteristics

Marital Status –
There are not enough studies to draw any conclusions
about the effect of marital status on productivity.

Research consistently indicates that married employees

have fewer absences, undergo fewer turnovers, and are
more satisfied with their jobs than are their unmarried
coworkers.
Biographical characteristics

Tenure –
Studies consistently demonstrate seniority to be
negatively related to absenteeism.

Tenure is also a potent variable in explaining turnover.

“Tenure has consistently been found to be negatively

related to turnover and has been suggested as one of the
single best predictors of turnover.”

The evidence indicates that tenure and satisfaction are

positively related.
Disability
Challenges and Opportunity for OB

 Responding to Globalization
 Managing Workforce Diversity
 Improving Quality and Productivity
 Responding to the Labor Shortage
 Improving Customer Service
Challenges and Opportunity for OB (cont’d)

 Improving People Skills

 Empowering People

 Coping with “Temporariness”

 Stimulation Innovation and Change

 Helping Employees Balance Work/Life Conflicts

 Improving Ethical Behavior

The Dependent Variables

x
The Dependent Variables (cont’d)
 Productivity, Effectiveness and Efficiency
Organizational citizenship
behavior (OCB)
The voluntary and
Discretionary behavior that is not
involuntary permanent
part of an employee’s formal job
withdrawal from an
requirements, but that
organization
nevertheless promotes the
effective functioning of the
Turnover organization.

Absenteeism
Job satisfaction

Productivity
Effectiveness
Efficiency
The failure to report to work

A general attitude toward one’s job; the

difference between the amount of reward
workers receive and the amount they believe
they should receive.
Attitude
 Attitude

 Attitudes are evaluative statements or judgments that are

either favorable or unfavorable about objects, people.

 They reflect how we feel about something.

 It shows our feelings about something.

 Iceberg
Attitudes

Knowledge
Known &
to others 10% Skills
Sea level

Unknown
to others 90%

Attitudes
Attitudes Attitude & Behavior

Known
to others 10% BEHAVIOR
Sea level

Unknown
to others 90%
VALUES – STANDARDS - JUDGMENTS

Attitudes
MOTIVES – ETHICS - BELIEFS
One day I met Money…
I said U r just a piece of
Paper……..!!

Money smiled & said Off course

I’m a piece of paper, but
I haven’t seen a dustbin
In my life…..!

that’s Attitude……
 Nature of Attitude
Attitudes are learned
It is the feeling, beliefs of individual and groups
These feelings and beliefs are defined ones
predispositions towards given aspects of the world.
Attitudes endure, unless something happens.
Attitudes can fall anywhere along a continuum for very
favorable to very unfavorable.
Attitudes are organized and are core to an individual.
All people irrespective of their status or intelligence, hold
attitudes.
Definitions of Attitudes

“An attitude is mental state of readiness,

learned and organized through
experience, exerting a specific influence
on person’s response to people, object
and situations with which is related”
 Suppose that your are new to the organization
and not familiar to your colleague. You get a
chance to interact with them in this party.

What will you do in this situation?

a) You will take the initiative to talk

b) Feel strange and nervous so will not talk with
others
c) You will wait for someone else to talk to you
d) You will stand and smile to others.
 If you go in a shopping mall, and you like on
t-shirt, what would be your action?

a) You will immediately buy it

b) You will take a trial before purchasing

c) You will match the price with your budget and if it

matches than only you will purchase it.

d) You will look out for the discount scheme

 Cognitive
(belief in the way things are)
process of acquiring
Cognitive knowledge and understanding
“discrimination is wrong” through thought, experience,
and the senses
“My pay is low”

Cognitive
Affect

“I don’t like Jon because he

Attitude
discriminates again minorities.”
Affect
“I am angry over Behavior (emotional or feeling
how little I’m paid.” an intention to behave in segment of attitude)
a certain way toward
have an effect on;
someone or something
make a difference to
Behavior

“I chose to avoid Jon because

he discriminates.”

“I’m going to look

for another job that pays better.”
Cognition, affect, and behavior are closely related

Cognitive = Evaluation
My supervisor gave a promotion
to a coworker who deserved it
less than me. My supervisor is unfair.

Negative
Affective = feeling attitude
I dislike my supervisor! towards
supervisor

Behavioral = action
I’m looking for other work; I’ve
complained about my supervisor
to anyone who would listen.
Types of Attitudes
Job satisfaction
A positive feeling about one’s job
resulting from an evaluation of its
characteristics.

01
Job Job Involvement
Employee Engagement satisfaction The degree to which a person
An individual’s involvement identifies with a job, actively
with satisfaction, and participates in it, and
enthusiasm for the considers performance
organization important to self worth
Types of
Attitudes

organizational
Perceived Organizational commitment
Support The degree to which an
Degree to which employees employee identifies with a
feel the organization cares particular organization and
about their well-being its goals and wishes to
maintain membership in the
organization
End