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Organizational Behavior
(Class Lectures before Midterm Exams)
Collected and Written By:

Abbas Asad
B.Com Hons. ( 6th Sem.)

Hailey College of Commerce University of the Punjab Lahore

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Management:
To create and maintain an environment where individuals can work together trying to achieve their objectives. Approaches of Management: 1. Functions Approach. 2. Roles Approach. 3. Skills Approach. 1. Functions Approach. I. Planning II. Organizing III. Leading IV. Controlling Roles Approach: Set of Activities performed by individuals. A. Interpersonal: (while dealing humans) i. Leader: (to guide others) ii. Liaison: (the role of lining b/w org) iii. Figurehead: (for exp. C.R.) B. Informational: i. Monitor: (collects information) ii. Disseminator: ( Spread information) iii. Spokes person: (to spread information outside the organization) Decisional: i. Entrepreneur: () ii. Negotiator: ( dealing outside the organization) iii. Disturbance Handler: ( conflict resolves) iv. Resource Allocator: (resources from where will be come and where to be used.

2.

C.

3.

Skills Approach: Observable demonstratable and measureable characteristics are called skills. A. Conceptual Skills (analyzing the situation.) B. Human Skills Ability to understand and work with individual. C. Technical Skills Subject to specific knowledge or area specific knowledge.

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Organization
A consciously co-ordinate unit with a definable boundary composed of two or more individual working on relatively continuous bases to achieve a set of objectives. 1. Social Unit 2. Definable boundary 3. Composed of 2 or more individuals 4. Continuous Working 5. Purpose Resources of Organizations: 1. Physical Resources 2. Financial Resources 3. Human Resources. (Human capital is called knowledge, skills and ability of people.)

Behavior
Actions or reactions of an individual towards an external environment are called behavior. (There are 3 things in external environment, People, things, events.)

Organizational Behavior:
A systematic study or a systematic investigation in to the action or reaction of individuals working with in a specific organization and to find out the impact of various individual level, group level, organizational level variable on their action and reaction. OR Study of behavior of individuals within organization to predict it and to modify it according to the requirements of organization is called organizational behavior.

Types of Behavior:
1. 2. 3. 4. 5. 6. Absenteeism Employees Turnover. Productivity Job Satisfaction Organization Citizenship Behavior Deviant Workplace

1. Absenteeism () Failure to report to the work place OR Inability of individual to report to the job when required is called absenteeism. Absenteeism should be decreased. 2. Employees Turnover. () Employees who leave the organization permanently is called employees turnover. Example, A person enters in an organization and he has no experience. He learns in company and when he becomes a professional and there comes a time to work for the benefit of organization he leaves to that organization, which is not right and not good for the company.) There are two types of Employees Turnover, Violently (employee leaves himself) and Involuntary (employees leaves because of any problem.).

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3. Productivity. () The ratio b/w input and output of an individual. The contributions made by employee towards in its organization. An employee does how much work and how much work is his duty. 4. Job Satisfaction. () A positive feeling about the job as a result of evaluation of these characteristics, i. Work itself/Contents of the job. (Which type of work we are doing?) ii. Physical working conditions iii.Co-Workers. iv. Pay and benefits v. Promotion opportunity Job satisfaction is not a behavior but if this characteristic will be fulfilled then 2 and 3 will be more positive. 5. Organization Citizenship Behavior. () As a Pakistani it is our responsibility that we should do all those works which are for the benefit of Pakistan and we should avoid from all those works which are cause of loss for Pakistan, same as it is a responsibility of an employee that he should act or not act which is better or not better for organization. 6. Deviant Workplace. /Work Place Incivility. () Voilentry and invoilentry behavior on part of the employee that disturb significant and that are against the well being of organization and its members For example, an employee is working much better but with its working he is singing in low voice or beating its pen on table which is disturbing to others. Organizational Behavior Model

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Intuition: Acting or performing any action by saying or thinking this that my heart is saying this or I think this is right. Systematic Study: Acting or performing any action on the basis of research and evidences. This is also called EBM (Evidence Based Management).

Challenges and Opportunities for Managers/O.B./People 1. Globalization 2. Workforce diversity 3. Improving quality and productivity 4. Customer Services 5. Improving people skills 6. Creativity and Innovation 7. Dealing with temporariness 8. Working with networked organization 9. Positive work environment 10. Ethical Environment 11. Work-Life balance 1. Globalization (We are performing better from our competitors in any field i.e. cost, advertisement, etc.) Expansion of business for goods and services across the boundary of nations is called globalization that may create various challenges like cultural differences, differences among the values and thoughts of individuals and hiring a more appropriate workforce that may deal with different kind of people. (We are expanding our business across the boundary. When we will expand it then we will have to manage the differences of culture etc.) 2. Workforce diversity When people will work in any organization or office belonging from various countries, Values and cultures then there will be problems among them. These problems are called problems of workforce diversity. The differnative characteristics of labor force in terms of their biographical characteristics may be called as workforce diversity. (For example Age, gender, religion, social class, etc.) It may create various challenges because of differences among the needs and expressions of individuals having different characteristics that may force the manager to introduce flex policy for the employees. Where there is workforce diversity there may be these 3 problems. We will have to be attentive to stop to these problems. (i)No Discrimination: He is non Muslim so he cannot work here.

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(ii) Fair Treatment: A manager should keep in mind the needs of employees. For example if a worker performs well and manager gives him a bike in reward while employee need money for medicines of his children, or he need a home. (iii) Equal Opportunity: A manager should provide equal chances to everyone so that they could show and better use their abilities. Affirmative Action: When these problems will become then a manager should use this action. All the roles and policies introduced implemented by the organization to ensure equal and fair treatment without discrimination. 3. Improving quality and productivity A manager should focus on increasing the quantity while considering the quality as the basic concern. 4. Customer Services Majority of the business lines with the services section including hospitals, banking etc. where customers have direct interaction with the service provider so the manager need the prepare their workforce to fulfill customers needs accordingly. 5. Improving people skills Preparing the workforce/ labor force by improving their skill regarding understanding with other human being and working with them in the most appropriate and suitable manners. 6. Creativity and Innovation Preparing the people/ work force to identify various opportunities and avail that opportunities for the best interest of business. 7. Dealing with temporariness (When nothing is permanent, it is called temporariness.) In the todays ever changing environment various procedure or operational changes many happen that can create frustration and disturbance for their employees. This problem should be avoided by implementing rules and to facilitate the employees accordingly. 8. Working with networked organization Where there is no direct interaction of people and they are linked through networks and computers there this problem will become because then cannot know the feeling and emotions of one another. The organizations where people are in directive with each other through computer network and various technologies may create various issues as no direct interaction takes place b/w various employees. 9. Positive work environment Creating a supportive environment for the employees where they can perform at their best using the skills. For example the professor was delivering lecture and the class was feeling bore then professor said a joke and the whole class become fresh.

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10. Ethical Environment Equal and fair treatment for all the employees by applying the most appropriate managerial practices. Ethical Dilemma: The situation where manager can decide that what is right and what is wrong. 11. Work-Life balance Life= personal obligations, Work= Job The appropriate and suitable managing the job timing so that an employee could give time to job and also to his family.

Levels of Organization
(1) Individual Level (2) Group Level (3) Organizational Level (1) Individual Level Biographical Characteristics Ability Learning

Biographical Characteristics
Permanent characteristics of an individual personality that explains or identifies and distinguishes it from the other members of that organization. Age, Tenure, Gender, Race, Social Class.

(1) Age:
The number of years of individual spent after its birth. Age = Experience, Judgment, Commitment with job, Work ethics (More rational) If Age = Flexibility (Adoptability to changes) Comparison: (i) Absenteeism:

(ii) Employee Turnover: Age = Ratio of Employee Turnover Company gave me job when I was need for it, now company has need mine so why I leave it. (iii) Productivity: Age= Productivity +ve / Un-Related

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(iv)

Job Satisfaction:

In the start a person makes struggle with high level of job satisfaction but after some time he comes to know that company has limited resources and a little platform then his job satisfaction comes down but with the passage of time when he becomes an expert in his work his job satisfaction comes again to high level. (v) Organizational Citizenship Behavior: Age = Organizational Citizenship Behavior ( Un-Related) Its means that any person cannot tell that this person his this age limit that is why he has organizational citizenship behavior or not. (vi) Deviant Workplace Behavior: Age= Deviant Workplace Behavior (-ve) A person avoids from deviant workplace behavior with an increase of age. (2) Tenure: The number of years a person have been working and performing obligation.

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(3) Gender: The orientation of an individual in terms of male and female.

(4) Race: The biographical region of an individual that distinguish a specific group of people from another individual. For example African, Asian, Spanish, White People, Red Indians.

(5) Social Class: A specific group with in a society from which a person belongs based on various characteristics including style of living, income etc.

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Reasons for Race and Social Class: (i) To avoid discriminations among various individuals from different race and social classes (ii) To avoid favoritism for different individuals from different regions (iii) To avoid negative attitude for different individuals from various regions.

Ability
Capacity of a person to perform work/various tasks. Types of Ability (i) Intellectual Ability (ii) Physical Ability

(i)

Intellectual Ability/Cognitive Ability

Capacity of a person to perform various mental tasks that involves thinking, reasoning and problem solving. (Ability to use your mind.) Types of Intellectual Ability (a) Arithmetic Ability (b) Verbal Comprehension (c) Perpetual Speed (d) Reasoning (e) Spatial Visualization (f) Memory

(a) Arithmetic Ability Individual ability to perform various mathematical tasks accurately involving +,-, /, and *. (b) Verbal Comprehension An individual capacity to understand and to effectively explain the words which are heard and read by the individual. For example sales man, lawyer, and professor (c) Perceptual Speed Ability to analyze the physical dimensions of situations and to identify various similarity and differences among the situations. For example policeman.
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(To see different things and to analyze those things.) (d) Reasoning Using logic to make arguments or to identify similarities or differences among various situations. (e) Spatial Visualization Ability of an individual to imagine various changes in physical environment to foresee that how does the environment look after the change. For example event managers, designers. ( if the direction of the class room will be like this and like this then how it will be attractive and beautiful.) (f) Memory Ability of an individual to retain and recall information. For example student.

(ii)

Physical Ability

Ability of an individual to perform various tasks that involve strength, stemna and coordination of various parts of body is called physical ability. Strength: How strong the person is to perform a work. Stamina: For how long a person can perform various tasks. Coordination: Whether various parts of body help each other by performing physical activities. Ability Job-Fit To study the ability of someone, analyze it and then assign him a task which is best suitable according to his abilities. Identifying the specific dimension of ability processed by individual and assigning that person specific job activities accordingly or A match b/w ability of individual and its nature of job. (Note: We are studying these abilities so that we could assign reasonable and suitable tasks and job work to employees and people.)

Learning
Acquiring new knowledge, skills and information and abilities is called learning Systematic definition A relatively permanent change in behavior as a result of experience Permanent Change in behavior Experience (Direct experience: When any person will be involved in any task. (Indirect Experience: When any person will get knowledge from the experience of someone others. Theories of Learning: (i) Classical Conditioning theory (ii) Operant conditioning theory (iii) Social learning theory

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(i)

Classical Conditioning theory (Early 1900s) Russian psych. Ivan Pavlov. Every behavior is a result of specific condition.

For example if there is no guard on the gate then no any person will come with card. The theory of learning that explains that specific behavior can be promoted with in individuals by applying various conditions or set of conditions that are helpful in creating desired behavior with in individuals. (a) Passive Theory Passive theory is a classical theory. First the conditions will apply then the behavior will change. (b) A General conception. This is a general theory. If we will use conditions then the behavior will be changed. (ii) Operant Conditioning (1940s B.F. Skinner) There are two types of operators which change our behavior. (a) Punishment: We come with card so that we could be safe from fine. (b) Reward: We come in presentation well dressed so that we could affect to professor and then he will give us more marks.

The theory of learning that identifies that behavior is result of its consequences including rewards and punishments. (a) Active theory: first the action is performed then we will receive the reward or punishment. (b) More logical in defining the relationship b/w behavior and its consequences. (iii) Social Learning Theory: Trainers use this theory more time from any other person. We learn from around us where we are living. The theory of learning that focuses on other members of society and explains that individuals acquire various behaviors by observing other individuals.

Process of Social Learning (i) Intentional Process (ii) Retention Process (iii) Motor reproduction process (iv) Re-enforcement Process. Explanation: (i) We go to a manager with a new client or customer and we see that with how much better method he deals to the client. (ii) We like and remember the dealing method of manager. (iii)Next time manager assigns same tasks to us and we use the same dealing method of manager which we remembered. (iv)If we will be successful in deal then manager gives us reward and if we fail he says us bad or something other.
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Attention: The process of identifying a specific member of society as model whose action and reaction/ behavior are considered characteristics to perform various job activities. (ii) Retention Process: The process of remembering all he slandered characteristic so they can be duplicated when the model is not readily available. (iii) Motor Reproduction: The process of performing various work activities as observed within the model and retained the individual. (iv) Re-enforcement: the process of providing the individual with feedback whether it has performed the activities accordingly or otherwise. OR All the tools and techniques designed by the managers to shape or modify the behavior of employees according to the requirements. Shaping/ Behavior Modeling/ Behavior Modification: Modifying the behavior of employee according to the requirements of an organization by applying various reinforcements is called behavior modeling. Kinds of Reinforcements (i) Positive reinforcement (behavior ) (ii) Negative reinforcement (behavior ) (iii) Punishment (behavior) (iv) Extinction (behavior) (i) (i) Positive reinforcement Offering something worthwhile or positive to the employees in case they perform the desired activities. For example an employee makes an outstanding effort then the manager gives him some reward or commission. In the result of such case the employee will make also best efforts in his duty. Negative Reinforcement: Removing something unpleasant from the employee in case they perform work activities. For example manager assigns a task to an employee and the employee give better result before the expected time then the manager gives him relaxation and leave him before the leave time. Punishment: Imposing an unpleasant condition or a burden on the employee in case they perform various activities that are not required by the organization. For example a manager says to an employee that you cannot go to home until you complete your work. Extinction: Removing all kinds of reinforcements to ignore the behavior that are not required so these behavior can automatically be removed. For example Professor was teaching in class and a boy raises his hand to ask something but professor does not give attention to him, after some time boys acts again same but professor does not give attention, boys will do this action may be three or four time but if professor will not give attention then the boy will be automatically stopped.

(ii)

(iii)

(iv)

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(Note): when there no will be any kind of first three kinds of reinforcements then the suggested example will be the 4th type automatically.)

Schedule of Reinforcement The specific timings or ratio of output on the basis of which an employee can be reinforced according to the policy of company. Types according to Schedule: 1. Continuous Reinforcement 2. Intermittent Reinforcement 1. Continuous Reinforcement: Reinforcing various behaviors each and every time an employee performs various activities. For example a person sells a marker company gives him commission, he sells another company gives him commission again, he sell another, company gives him commission again and so on. OR A student comes without card and the gatekeeper stops him, student comes again and again without card and gate keeper stops him each and every time. 2. Intermittent: Reinforcing the behavior on variable intervals rather than (instead of) applying certain reinforcement each time when the behavior is performed. For example a student comes without card then gate keeper gives him warning and allowed him to come in, but when student comes next time without card, gate keeper stops him and does not allowed him to come inside the college.

1. Fixed Ratio Reinforcement: The schedule in which a specific quantity of the output is fixed by the managers to reinforce the employees. For example Commission on each 100 units of sale. 2. Variable Ratio: The schedule of reinforcement where managers have decided to reinforce the employees on the basis of variable quantity of output. For example commission on variable quantity sold.

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1. Fixed Interval Reinforcement: The schedule where the specific time period has been fixed by the manager to reinforce various activities. For example commission on sale at the end of each month. 2. Variable Interval Reinforcement: The schedule where employees are reinforced after variable time intervals based on their behavior. For example commission after variable time interval.

Attitudes: Evaluation statements or judgments regarding people, things and events Components of an attitude: 1. Cognitive Component 2. Affective Component 3. Behavioral Component

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1. Cognitive Component: The thinking or perception part of an attitude Example: Cigrate is a bad habit. 2. Affective Component: The emotions and feelings parts of an attitude Example: It is waste of money and health. 3. Behavioral Components: Intention to behave in a specific way regarding people, things and events Example: If any person offers me cigrate, I cannot accept it. Some times Perception Attitude (Attitude comes from perception) Attitude Behavior (Behavior comes from attitude) Behavior Attitude (Attitude comes from behavior) Attitude Behavior (Both goes to be end.)

Attitude and Behavior: The variables/factors that determine cognitive dissonance. For example I dont like cigrate but when any friend will offers me I accept it. Here attitude is different from behavior. This is called cognitive Dissonance. People try to decrease it by matching in attitude and behavior.

The Factors that determine

1. Importance: Our relegious thinking is very important for us. We do not change our behavior about those our relegious tasks.Here there is a match between attitude and behavior. The more impottant certain attitude there are less chances of cognative dissonance. Expample: value system, relegious believes. 2. Occurance: When any tasks becomes repeated then we match our behavior according to the attitude. The more something happens again and again, individuals tends to match their attitudes and behaviors. Example: A friend offers me a cigrate again and again on daily basis, at least one day I will accept it. 3. Control: Childern were noising in the street then a person goes and ask them to remain silent other wise I will slap you. Here his attitude is that there sholud be no noise. In this situation there is a match between attitude and behavior. But he cant say all this to his wife in his home that is why there in no match between behavior and attitude because his attitude is no noise but his behavior is being silent mean he is accepting the noise. The contro over situations and events there are less chances of cognative dissonance.
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4. Social Pressure: The social pressur e in terms of various nouns tradaions may help the individual to minimize to cognative dissonance by providing various limitations.

Job Related Attitudes

1. 2. 3. 4. 5. Job Satisfaction Job Involvement Job Engagement Organizational Commitment Perceived Organizational Support

1. Job Satisfaction:
Positive feeling about the job as a result of evaluation of its characteristics Some important factors of job satisfaction 1. Job Contents/Nature of job Which types of task has been assigned to me. 2. Physical working Conditions What is the physical condition of my office? Attractive or bad 3. Co-Workers Are co-workers are co-operative or not? 4. Pay and benefits Is there a good salary package? Is he satisfied from his salary package? 5. Opportunity for advancement/Growth Will he get promotion ever? After how much time he gets promotion How to measure Job Satisfaction 1. Single Global Rating 2. Summation Score 1. Single Global Rating: The method of measuring job satisfaction where a single question is asked from the employee regardless of considering various characteristics of that job In this type we do not ask questions in detail from employees. We ask just generally.

As well as score will is increase the satisfaction also will be increased.

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2. Summation Score In this method we know different characteristics of workers and also we know generally/overall that is he satisfied or not from his job?

Effects of Job Satisfaction on employees Absenteeism Turnover Productivity Customer Satisfaction Citizenship Behavior Workplace Deviance Effects of Job Dissatisfaction on employees behavior When any employee becomes dissatisfied from job, then he can perform one of these options, like he can leave the job or continue his working with this feeling that what problem for me I am receiving my salary whether company earns profits or not.

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I. II. III. IV.

Exit Voice Loyalty Neglect

I. Exit: The response of job dissatisfaction where employees tend to quit their job with the firm. This response is considered to be an active response from the employees that is destructive for the organization or that is not beneficial for organization II. Voice: The job dissatisfaction response which is active and beneficial for the organization where employees tend to inform the management about the various aspects of job from which they are dissatisfied. III. Loyalty: A passive response from the employees which is constructive for the organization where employees contribute their efforts for the organization with a positive perception that the condition may improve IV. Neglect: A destructive response of job dissatisfaction where employees do not contribute their efforts and let the conditions be worst. Absenteeism Turnover Productivity Customer Satisfaction Citizenship behavior Workplace Deviance

2. Job Involvement:
The degree to which an employee identifies the job intends to perform that job and considers performance important for self work. *identification *Intention to perform *Important Effects of job involvement on employees behavior: Absenteeism Turnover Productivity Citizenship Behavior Deviance Workplace behavior Profits/Returns

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3. Job Engagement:
The degree to which an employee is satisfied with the job involved in to that job and enthusiastic/passionate about performing that job *Positive feelings *Identification *Intention to perform *Important Effects of Job engagement on employee behavior: Profits Absenteeism Turnover Productivity Job Satisfaction Citizenship behavior Deviance Workplace behavior Errors/Mistakes

4. Organization Commitment:
The degree to an employee identifies with an organization and intends to work for that org for a longer period of time. *Identification with the organization *Intentions to work for the organization *For a longer period of time. Companies give rewards on the base of seniority and performance. If one person hopes that company will give him reward on the base of performance but company gives reward on the base of seniority, then this person becomes unsatisfied from the organization and if organization gives reward according to his hope on the base of performance its mean that he identifies the organization and becomes satisfied and works with full satisfaction. Profits Absenteeism Turnover Productivity Job Satisfaction Citizenship behavior Deviance Workplace behavior Errors/Mistakes

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Types of Organization Commitment: 1. Affective Commitment (Feelings/Emotions) 2. Normative Commitment 3. Continuance Commitment 1. Affective Commitment: The attachment of an individual with a specific task based on its emotions and feelings that are matched with goals and objectives of organization For examples relative of a person dies with cancer and such person has emotional attachment with that person. Now he tends to stop the disease of cancer and builds a cancer hospital. Now this person will never leave this work. 2. Normative Commitment: Attachment of an individual with a specific organization based on ethical values or norms and traditions exists within that society. I live in Shorkot (Jhang) now a welfare society builds up there and I join this but my friends do not join this. But after some time because of me they join it. 3. Continuance Commitment: Attachment of individual with an organization based on perceived monitory value or returns associated with that organization Example: Not to leave that organization to avail various benefits and monitory returns.

Perceived Organizational Support:

Organizational Support: All the facilities and assistance/help provided to an employee for its personal and professional development. For examples a person knows that how to maintain general journal, ledger, trial balance, but he does not know how to maintain to adjusting entries. Then org asks to a senior to teach and train him. On this situation employee thinks positive about the organization that organization is supporting me . Perceived Organizational Support: A positive perception of employee regarding organization support. Profits Absenteeism Turnover Productivity Job Satisfaction Citizenship behavior Deviance Workplace behavior Errors/Mistakes

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