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Welcome to the World of Organisational Behaviour (OB)

As we know human nature is predictably unpredictable, and it is also so in the organisational context

Well, through these lecture sessions on OB, our job is to minimise, if not eliminate, these unpredictable aspects of human behaviour

Chapter 1. What Is Organisational Behavior


The stellar universe is not so difficult of comprehension as the real actions of other people. Marcel Proust (French novelist, critic and essayist)

Manesar violence: 30 trade unions seek CBI probe

Violence at Manesar wasn't pre-planned: Maruti workers

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10 Maruti union leaders sent to police remand

Maruti mob was just 100-strong

Insight: Deadly India car factory riot sounds alarm bells for industry


Why is knowing people and their behaviour in its organisational-situatedness important in the context of business? re=related



After this discussion session, you should be able to:

1. Define organizational behavior (OB). 2. Describe what managers do. 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.


O B J E C T I V E S (contd) LEARNING

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 books OB model.


What Managers Do Managers (or administrators)

Individuals who achieve goals through other people.

Managerial Activities Make decisions

Allocate resources
Direct activities of others to attain 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.


Management Functions



Management Functions
Controlling Leading


Management Functions (contd) Planning

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


Management Functions (contd) 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 (contd) Leading

A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.


Management Functions (contd) Controlling

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


Mintzbergs Managerial Roles

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

E X H I B I T 11 114

Mintzbergs Managerial Roles (contd)

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

E X H I B I T 11 (contd) 115

Mintzbergs Managerial Roles (contd)

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

E X H I B I T 11 (contd) 116

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.


Effective Versus Successful Managerial Activities (Luthans)

1. Traditional management
Decision making, planning, and controlling

2. Communication
Exchanging routine information and processing paperwork

3. Human resource management

Motivating, disciplining, managing conflict, staffing, and training

4. Networking
Socializing, politicking, and interacting with others

Allocation of Activities by Time

Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).

E X H I B I T 12 119

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 organizations effectiveness.








Similarly, what we see in the case of people is only a (small) part of what they are.

Iceberg model of human consciousness (Freud, 1914) 124

The purpose of OB is to

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replacing Intuition with a systematic study programme. 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.
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Intuition vs. Systematic Study

Gut feelings Individual observation Common sense


Systematic Study

Looks at relationships Scientific evidence Predicts behaviors

The two are complementary means of predicting behavior.

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 1-27

Replacing Intuition with Systematic Study

Preconceived Notions

The Facts


An Outgrowth of Systematic Study

Evidence-Based Management (EBM)
Basing managerial decisions on the best available scientific evidence Must think like scientists:

Pose a managerial question

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Search for best available evidence

Apply relevant information to case


Contributing Disciplines

Many branches of social sciences have contributed to the development of Organizational Behavior


Social Psychology



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Contributing Disciplines to the OB Field

The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

E X H I B I T 13 (contd) 131

Contributing Disciplines to the OB Field (contd)

The study of people in relation to their fellow human beings.

E X H I B I T 13 (contd) 132

Contributing Disciplines to the OB Field (contd)

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

E X H I B I T 13 (contd) 133

Contributing Disciplines to the OB Field (contd)

The study of societies to learn about human beings and their activities.

E X H I B I T 13 (contd) 134

Contributing Disciplines to the OB Field (contd)

Political Science The study of the behavior of individuals and groups within a political environment.

E X H I B I T 13 (contd) 135

Toward an OB Discipline

E X H I B I T 13 136

Few Absolutes in OB
Situational factors that make the main relationship between two variables changee.g., the relationship may hold for one condition but not another.
Contingency Variable (Z) In American Culture In Iranian or Australian Cultures
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Independent Variable (X)

Dependent Variable (Y)

Boss Gives Thumbs Up Sign

Understood as Complimenting

Boss Gives Thumbs Up Sign

Understood as Insulting - Up Yours!


There Are Only a Few Absolutes in OB

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

Contingency Variables


Challenges and Opportunities for OB

Responding to Globalization
Increased foreign assignments Working with people from different cultures Coping with anti-capitalism backlash Overseeing movement of jobs to countries with lowcost labor

Managing Workforce Diversity

Embracing diversity Changing demographics Implications for managers
Recognizing and responding to differences


Major Workforce Diversity Categories

Gender Disability Age Religion Regional Origin

Race Sexual Orientation

E X H I B I T 15 140

Challenges and Opportunities for OB (contd)

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 Is Quality 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 16 142

Improving Quality and 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 and Opportunity for OB (contd)

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 OB Model, Stage I

An abstraction of reality. A simplified representation of some real-world phenomenon.

E X H I B I T 17 145

The Dependent Variables Dependent variable

A response that is affected by an independent variable.


The Dependent Variables (contd)

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 (contd)

The failure to report to work.

The voluntary and involuntary permanent withdrawal from an organization.

The Dependent Variables (contd)

Organizational citizenship behavior (OCB)
Discretionary behavior that is not part of an employees formal job requirements, but that nevertheless promotes the effective functioning of the organization.


The Dependent Variables (contd) Job satisfaction

A general attitude toward ones 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 Variables

Group-Level Variables

Organization System-Level Variables


Basic OB Model, Stage II

E X H I B I T 18 152