Let us recollect….

• What managers do
- Management functions
- Mintzberg’s management roles:
What
What Managers
Managers Do??
Do??
Managers (or administrators)
Individuals who achieve goals through other people.

Managerial
ManagerialActivities
Activities
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesof
ofothers
othersto
toattain
attain
goals
goals
2
Where
Where Managers
Managers Work?
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.

3
Management
Management Functions
Functions

Planning
Planning Organizing
Organizing

Management
Management
Functions
Functions

Controlling
Controlling Leading
Leading

4
 Management
Management Functions
Functions (cont’d)
(cont’d)

Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.

5
Management
ManagementFunctions
Management Functions (cont’d)
Functions (cont’d)
(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.

6
Management
ManagementFunctions
Management Functions (cont’d)
Functions (cont’d)
(cont’d)
Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts.

7
Management
ManagementFunctions
Management Functions (cont’d)
Functions (cont’d)
(cont’d)
Controlling
Monitoring activities to ensure they are
being accomplished as planned and
correcting any significant deviations.

8
 Mintzberg’s
Mintzberg’s Managerial
Managerial Roles
Roles

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1
by H. Mintzberg. Reprinted by permission of Pearson Education.
E X H I B I T 1–1
9
 Mintzberg’s
Mintzberg’s Managerial
Managerial Roles
Roles (contd)
(contd)

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1 (cont’d)
by H. Mintzberg. Reprinted by permission of Pearson Education.
E X H I B I T 1–1 (cont’d)
10
 Mintzberg’s
Mintzberg’s Managerial
Managerial Roles
Roles (contd)
(contd)

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1 (cont’d)
by H. Mintzberg. Reprinted by permission of Pearson Education.
E X H I B I T 1–1 (cont’d)
11
 Management
Management Skills
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.
Effective
Effective Versus
Versus Successful
Successful Managerial
Managerial
Activities
Activities
1.
1.Traditional
Traditionalmanagement
management
• •Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
2.
2.Communication
Communication
• •Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
3.
3.Human
Humanresource
resourcemanagement
management
• •Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,
and
andtraining
training
4.
4.Networking
Networking
• •Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others
Allocation
Allocation of
of Activities
Activities by
by Time
Time
Organization
Organization Behavior
Behavior

•Definition
•Features
•Significance
•Various Disciplines.
•Challenges & opportunities

15
 Organization
Organization Behavior
Behavior

•OB is a convenient shorthand that refers to

the numerous interrelated influences on, and
patterns of behaviour of people within
organisations

Organizational Behavior is the study of human

•

behavior in the workplace, the interaction between

people and the organization with the intent to
understand and predict human behavior.
 Organization
Organization Behavior
Behavior

systematic study of the actions

and attitudes
that people
exhibit within
organizations
Organization
Organization Behavior
Behavior

• . . . a field of study that investigates

the impact that individuals, groups and
structure have on behaviour within
organizations, for the purpose of
applying such knowledge toward
improving an organization’s
effectiveness.
Features
Features of
of Organization
Organization Behavior
Behavior

•Behavioral approach to management

•Body of theory, research & application
•Human tool for human benefit
•Influenced by other disciplines
•3 levels of analysis
•Is action oriented & goal directed
•Science & art
•Fulfils org. needs & objectives
•Systematic study & not based on intuitions 19
Why
Why Do
Do We
We Study
Study OB?
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. To
help you think about the people issues faced by managers
and entrepreneurs

• To understand how the many organizations you encounter

work.
Is organizational behavior really just common
sense?

•When employees are happy they are more

productive . (T/F)

•Friendly, trusting, and approachable bosses can

motivate their workers. (T/F)

•Leaders who exhibit a stable behavior,

regardless of the situations faced, make the best
leaders. (T/F)
•Experiences have shown us that interviews
where the interviewer leads with “tell me
about yourself” are very effective selection
methods. (T/F)

•A challenging job appeals to everyone.

(T/F)
•When people feel a little intimidated, they
will work harder and do their best. T/F

•Nonspecific goals allowing individuals to

work at their own pace will motivate
individuals to work harder. T/F
•Money is a motivator for all employees. T/F

•Most people are much more concerned about

their own salaries than they are about the
salaries of others. T/F

•Conflict has a negative effect on work group

effectiveness. T/F
Does organizational behavior
(OB) require a systematic study ?
Many people think OB is just common
sense.
Some would add OB is just intuition.
 Intuition versus Common Sense

Common Sense Defined

The unreflective opinion of ordinary men
and women, unsophisticated judgment.

Intuition Defined
A feeling not necessarily supported by
research.
 Organizational Behavior

Does organizational behavior (OB) require a

systematic study?

The answer is YES!!!

 Consistency vs. Individual Differences
Systematic Study
•Looking at relationships, attempting to
attribute causes and effects and drawing
conclusions based on scientific evidence.
•Behavior is generally predictable.
•There are differences between
individuals.
•There are fundamental consistencies.
•There are rules (written & unwritten) in
almost every setting.
Replacing
Replacing Intuition
Intuition with
with Systematic
Systematic Study
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.

28
Replacing
Replacing Intuition
Intuition with
with Systematic
Systematic Study
Study

Preconceived The
Notions ≠ Facts

29
Goals
Goals of
of Organizational
Organizational Behavior
Behavior

• Explain, predict,
and control
human behavior
 Significance
Goals
Goals of of Behavior
of Organizational
Organizational OB
Behavior

1. Understanding of self & others

2. Motivation
3. Effective communication
4. Effective organizational climate
5. Good HR relation

31
 Scope
Scope of
of OB
OB

• Individuals

• Groups

• The organisation itself

• The environment
Individuals
Individuals

• Are a central feature of OB

• Are a necessary part of any behavioural set
• Bring to the organisation their personality, skills
and attributes, values, needs and expectations
• Can create conflict if their needs and the
demands of the organisation are incompatible
 Management
Management and
and the
the individual
individual

Management’s task is to integrate the individual &

the organisation, providing a working
environment that permits the satisfaction of
individual needs & attainment of organisation
goals
 Groups
Groups

• Exist in all organisations

• Are essential to organisational working and

performance

• Comprise a range of different individuals

• Can develop their own hierarchies and leaders

 Groups
Groups

• Can have a major influence on behaviour and

performance of individual members

• Have their own structures and functions, role

relationships and influences and pressure

An understanding of group structure and behaviour

complements a knowledge of individual
behaviour
 The
The organisation
organisation

• Individuals & groups interact within the

structure of the formal organisation
• Organisational structure is created by
management to:
- establish a relationship between individuals &
groups
- provide order and systems to direct efforts of
the organisation into goal seeking activities
 Looking
Looking at
at the
the Big
Big Picture
Picture

The number one reason for failure among

executives of Fortune 500 companies is poor
interpersonal skills. In short, they don’t have a
command of the needed people skills and, as a
result, they come across as not really caring about
their people.
Organizations
Organizations and
and OB
OB

What is changing that requires a more

systematic study?
Organizations
Diversity
Global competition
Technology’s influence on behavior
Society – social changes
 The
The organisational
organisational iceberg
iceberg

One way to recognise why people behave as

they do at work is to view an organisation as
an iceberg

What sinks a ship isn’t always what sailors can

see, but what they can’t see

Hellriegal, Slocum, & Woodman

 Figure 2.3
The
The organisational
organisational iceberg
iceberg

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-
Western Publishing © (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning:
www.thomsonrights.com. Fax 800 730 2215.
 The
The organisational
organisational iceberg
iceberg
Formal
Formal (overt)
(overt) aspects
aspects

• Customers
• Technology
• Formal goals
• Organisational design
• Financial resources
• Physical facilities
• Rules & regulations
• Surface competencies & skills
 The
The organisational
organisational iceberg
iceberg
Behavioural
Behavioural (covert)
(covert) aspects
aspects

• Attitudes
• Communication patterns
• Informal team processes
• Personality
• Conflict
• Political behaviour
• Underlying competencies & skills
 Environment
Environment

The environment affects the organisation through:

• technological & scientific development

• economic activity
• social & cultural influences
• government activities
 Environment
Environment

The effects of the operation of the organisation

within its environment are reflected in the:

• management of opportunities & risks

• successful achievement of organisational aims

& objectives
Toward
Toward an
an OB
OB
Discipline
Discipline
Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
Psychology
The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals.
Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
(cont’d)
(cont’d)
Sociology
The study of people in relation to their fellow human beings.

Group

Organisation
system
Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
(cont’d)
(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
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
(cont’d)
(cont’d)
Anthropology
The study of societies to learn about human beings and their
activities.
Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field
(cont’d)
(cont’d)
Political Science
The study of the behavior of individuals and groups
within a political environment.
 There
There Are
Are Few
Few Absolutes
Absolutes in
in OB
OB
Contingency variables
Situational factors: variables that moderate
the relationship between two or more other
variables and improve the correlation.

x Contingency
Variables y
Challenges
Challenges and
and Opportunities
Opportunities for
for OB
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
– Implications for managers
• Recognizing and responding to differences
Challenges
Challenges and
and Opportunities
Opportunities for
for OB
OB (cont’d)
(cont’d)
• 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
 What
What Is
Is Quality
Quality Management?
Management?
1. Intense focus on the customer.
2. Concern for continuous
improvement.
3. Improvement in the quality of
everything the organization does.
4. Accurate measurement.
5. Empowerment of employees. E X H I B I T 1–6
E X H I B I T 1–6
 Improving
Improving Quality
Quality and
and Productivity
Productivity
• Quality management (QM)
– The constant attainment of customer satisfaction through
the continuous improvement of all organizational
processes.
– Requires employees to rethink what they do and
become more involved in workplace decisions.
• Process reengineering
– Asks managers to reconsider how work would be done
and their organization structured if they were starting
over.
– Instead of making incremental changes in processes,
reengineering involves evaluating every process in terms
of its contribution.
 Challenges
Challenges and
and Opportunity
Opportunity for
for OB
OB
(cont’d)
(cont’d)
• Improving People Skills
• Empowering People
• Stimulating Innovation and Change
• Coping with “Temporariness”
• Working in Networked Organizations
• Helping Employees Balance Work/Life Conflicts
• Improving Ethical Behavior
 Basic
Basic OB
OB Model,
Model, Stage
Stage II
Model
An abstraction of reality.
A simplified representation
of some real-world
phenomenon.
 The
The Dependent
Dependent Variables
Variables
Dependent variable
A response that is affected by an independent variable.

x
 The
The Dependent
Dependent Variables
Variables
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
The Dependent
Dependent Variables
Variables (cont’d)
(cont’d)

Absenteeism
The failure to report to work.

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

• Helping others on one's work team

• Volunteering for extra job activities
• Avoiding unnecessary conflicts
• Making constructive statements about
one's work group and the overall
organization
 The
The Dependent
Dependent Variables
Variables (cont’d)
(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
The Independent
Independent Variables
Variables
Independent variable
The presumed cause of some change in the dependent
variable.

Independent
Independent
Variables
Variables

Individual-Level Group-Level Organization

Organization
Individual-Level Group-Level System-Level
Variables
Variables Variables
Variables System-Level
Variables
Variables
Individual level variables:
biographical characteristics, personality, values and
attitudes, and ability
Perception, individual decision making, learning and
motivation.

Group level variables

Group dynamics, design of work teams, communication
patterns, leadership styles, power and politics, intergroup
relations, and levels of conflict,
Organisation system-level variables:
Design of the formal organisation, technology and work
processes, and jobs; the organisation’s HR policies,
internal culture, and levels of work stress.
E X H I B I T 1–8
E X H I B I T 1–8
68
 Bottom
Bottom Line:
Line: OB
OB Is
Is For
For Everyone
Everyone

•Organizational behaviour is not just for

managers.

•OB applies equally well to all situations in

which you interact with others: on the
basketball court, at the grocery store, in
school, or in church.
 Summary
Summary and
and Implications
Implications

• OB is a field of study that investigates the

impact that individuals, groups, and structure
have on behaviour within an organization.
• OB focuses on improving productivity,
reducing absenteeism and turnover, and
increasing employee job satisfaction and
organizational commitment.
• OB uses systematic study to improve
predictions of behaviour.