ORGANIZATIONAL BEHAVIOUR

LECTURE 2
Lecturer: Shahzad Minhaj Khan
 What is an
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.
 What are organizations?
• Social entities
• Goal oriented
• Deliberately structured
• Linked to the external environment
 Organization
A systematic arrangement of people to accomplish some
specific purpose.

KASBIT Govt. Agencies Hyper Store

Steel Mills Hospitals United Nations

 How does an
Organization Create
Value?
• Organization’s Inputs
– Raw material
– Capital
– HR
– Information & Knowledge
 Organization’s Environment
– Customers
– Shareholders
– Suppliers
– Distributors
– Competitors
– Government
 Organization’s
Conversion Process
– Machinery
– Computers
– Human Skills & Abilities
 Organization’s Outputs
– Finished Goods
– Services
– Dividends
– Values for Stakeholders
 Organizational Stakeholders

• Inside  Outside
– Shareholders – Customers
– Workforce – Suppliers
– Government
– General Public
 Factors Affecting
Organizations
• Organizational Environment

• Technological Environment

• Organizational Process
 Managerial Perspectives on
Organizational Behavior

Organizational behavior is not a

designated function or area. Rather, it is a
perspective or set of tools that all
managers can use to carry out their jobs
more effectively.
 A Knowledge of Organizational
Behavior Helps Managers:

Better Understand the Better Interact with

Behavior of Those Colleagues, Peers, and
Around Them Co-Workers

Better Understand the Better Interact with

Basic Issues of Suppliers, Customers,
Leadership and Competitors
Understanding Work Behavior

Manager’s Role Includes:

Observing and recognizing the differences
Studying relationships between variables
that influence individual behavior
Discovering and predicting relationships
13
 Part-I The Individual
• Ability & Learning
• Values, Attitudes and Job Satisfaction
• Personality & Emotions
• Perception & Individual Decision Making
• Basic Motivation Concepts
• Motivation and its Applications
Understanding the
Basics of Human
Behavior
Heredity Individual Environment
Differences
Framework

Abilities Work-Related
Values Attitudes
and Skills

Work-Related
Behaviors
 Demographic Factors
Demographic factors include a number of individual
differences that influence behavioral choices

Nationality
Race Age

Socioeconomic Educational
Background Attainment
Gender
 Biographical
Characteristics

Age Gender

Marital
Tenure
Status
Variables Influencing
Individual Behavior
 The Person
• Skills & abilities The Environment
• Personality • Organization
• Perceptions • Work group
• Attitudes • Job
•Values • Personal life
• Ethics

Behavior
B = f(P,E)
 Individual Differences
To Understand Individual Differences
a Manager Must

Study relationships
Observe and between variables
Discover
recognize the that influence
relationships
differences individual
behavior
Why focus on
individuals?
A lot of athletes say they want to
be part of a cohesive team—but
they also want their name printed
on the back of their jerseys in 6-
inch-high block letters.
-S.P.Robbins
 Model of Organizational Behavior

• Independent variables
– Individual
– Group
– Organizational

• Dependent variables
– Attitudinal
– Performance-related

Prentice Hall, 2001 Chapter 1 24

 Productivity

Absenteeism
The
Turnover Dependent
Variables
Organizational
Citizenship

Job Satisfaction

Prentice Hall, 2001 Chapter 1 25

Performance
 Why Do We Care?
Ability

PERFORMANCE

Motivation Opportunity
Performance =
f (Ability, Motivation, Opportunity)
 Ability
•Mental and physical
capabilities to perform
various tasks.
 Intellectual Abilities

•The capacity to do
mental activities
 Intellectual Abilities
• Number aptitude
• Verbal comprehension
• Perceptual speed
• Inductive reasoning
• Deductive reasoning
• Spatial visualization
• Memory ability

Prentice Hall, 2001 Chapter 2 30

 Physical Ability
• The capacity to do tasks
demanding stamina,
strength and similar
characteristics.
 Basic Physical Abilities

Strength Other Flexibility

Factors Factors Factors

Prentice Hall, 2001 Chapter 2 32

 Emotional Intelligence
Emotional Intelligence Involves:
•The ability to understand individuals to act
wisely in human relations
•EI abilities in five areas:
•Self-awareness
•Managing emotions
•Motivating oneself
•Empathy
•Handling relationships 33
 The Ability-Job Fit

• Abilities of the employee

• Requirements of the job

Prentice Hall, 2001 Chapter 2 34