INTRODUCTION TO

ORGANIZATIONAL
BEHAVIOUR
1
What Managers Do

Managers
Individuals who achieve goals through other
people.

Managerial
ManagerialActivities
Activities
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesof
ofothers
othersto
to
attain
attaingoals
goals
 Where Managers Work

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.

© 2005 Prentice Hall Inc. All rights reserved.

 Management Functions

Planning Organizing

Management
Functions

Controlling Leading

.
Management Functions (cont’d)

Planning
A process that includes defining
goals, establishing strategy, and
developing plans to coordinate
activities.
Management Functions (cont’d)

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.
Management Functions (cont’d)

Leading
A function that includes motivating
employees, directing others,
selecting the most effective
communication channels, and
resolving conflicts.
 Management Functions (cont’d)

Controlling
Monitoring activities to ensure they are
being accomplished as planned and
correcting any significant deviations.

.
Case 1
 . Abhay Bedi joined Eslia Electronics Ltd., as an
engineer. When he had completed five years in
the firm, his manager resigned to join another
firm in a higher position. After evaluating the
performance records of 10 engineers in the Firm,
the top management decided to promote Abhay
to the position. When Abhay was handed the
promotion letter, he was happy but also tense
about his new role. What are the different roles
that Abhay will have to perform as a manager.
Mintzberg’s Managerial Roles
 Mintzberg’s Managerial Roles (cont’d)

.
 Mintzberg’s Managerial Roles (cont’d)

.
 Ramanath , one of the software engineer working with
INO solutions, had excellent knowledge in his field,
and had received an award for the best software
engineer in the third year of his joining the company.
However ramnath lacked interpersonal skills and
always worked in isolation without interacting with
any of his colleagues. The only time he interacted with
people were-first when he had to listen to the
requirements of the customers and note the
specification of the product desired by them and
second when he had to explain to the customers the
usage of the product desired by them . Even during
these interactions , Ramanath was ill tempered and
got easily irrated . Due to his poor interpersonal skill ,
he was not considered for managerial position in the
organization. Suggest how Ramnath can improve his
chances of being considered for promotion in next
appraisal.
 Common mistakes committed by managers
 Lack Of clarity
 Lack Of empathy
 Act as Demotivator
 Poor Listening Skills
 Failure to give effective feedback
 Too busy to manage

© 2005 Prentice Hall Inc. All rights reserved. 1–14

Management Skills

Technical skills
The ability to apply specialized
knowledge or expertise.

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

Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
Enter Organizational Behavior

Organizational behavior
(OB)
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.
 What is the net present value at a discounted rate
of 12% per year of an portfolio of stocks , with an
intial dividend next year of INR 4 crores and an
expected rate of dividend dividend next year of rs
4 lakh and an expected rate of dividend growth
thereafter of 4% per year.
 What is the most effective way to motivate people
at work?
 Intuition and Systematic Study

The two are complementary means of predicting behavior.

Replacing Intuition with Systematic Study

Intuition
A feeling not necessarily supported by research.

Systematic study
Looking at relationships, attempting to
attribute causes and effects, and drawing
conclusions based on scientific evidence.
Provides a means to predict behaviors.
Contributing Disciplines

Many behavioral sciences

have contributed to the
development of
Organizational
Behavior

See E X H I B I T 1–3 for details

Contributing Disciplines to the OB Field

Psychology
The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals.
Contributing Disciplines to the OB Field (cont’d)

Sociology
The study of people in relation to their fellow human beings.
 Contributing Disciplines to the OB Field (cont’d)

Social Psychology
An area within psychology that blends concepts from
psychology and sociology and that focuses on the
influence of people on one another.

©
Contributing Disciplines to the OB Field (cont’d)

Anthropology
The study of societies to learn about human beings
and their activities.
Contributing Disciplines to the OB Field (cont’d)

Political Science
The study of the behavior of individuals and
groups within a political environment.
Toward an OB Discipline
There Are Few Absolutes in OB

Contingency variables
Situational factors: variables that
moderate the relationship between two
or more other variables and improve the
correlation.

x Contingency
Variables y
Basic OB Model, Stage I

Model
An abstraction of reality.
A simplified
representation of some
real-world phenomenon.
Types of Study Variables
Independent (X)
– The presumed cause of the
change in the dependent
variable (Y).
– This is the variable that OB
researchers manipulate to
observe the changes in Y.
Dependent (Y)
– This is the response to X (the
independent variable).
– It is what the OB researchers
want to predict or explain.
– The interesting variable!
The Dependent Variables (cont’d)

Productivity
A performance measure that
includes effectiveness and
efficiency.

Effectiveness
Achievement of
goals.
Efficiency
The ratio of effective
output to the input
required to achieve it.
The Dependent Variables (cont’d)

Absenteeism
The failure to report to
work.

Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization.
The Dependent Variables (cont’d)

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.
 The Dependent Variables (cont’d)

Job satisfaction
A general attitude toward one’s job, the
difference between the amount of reward
workers receive and the amount they believe
they should receive.
The Independent Variables

Independent variable
The presumed cause of some change in the
dependent variable.

Independent
Variables

Individual-Level Group-Level Organization

Variables Variables System-Level
Variables
OB Model

Dependent
Variables (Y)

Independent
Variables (X)

E X H I B I T 1–6
Challenges and Opportunities for OB
 Responding to Globalization
 Managing Workforce Diversity
 Improving Quality and Productivity
 Improving Customer Service
 Improving People Skills
 Stimulating Innovation and Change
 Coping with “Temporariness”
 Working in Networked Organizations
 Helping Employees Balance Work-Life Conflicts
 Creating a Positive Work Environment
 Improving Ethical Behavior
OBJECTIVES
After studying this chapter,
you should be able to:

1. Define organizational behavior (OB).

2. Describe what managers do.
LEARNING

3. Explain the value of the systematic study of

OB.
4. List the major challenges and opportunities for
managers to use OB concepts.
5. Identify the contributions made by major
behavioral science disciplines to OB.

38
O B J E C T I V E S (cont’d)
After studying this chapter,
you should be able to:

6. Describe why managers require a knowledge

of OB.
7. Explain the need for a contingency approach
to the study of OB.
8. Identify the three levels of analysis in this
LEARNING

book’s OB model.