PPT 1 IN CANVAS: Organizational Behavior
Notes: What comes to your mind when you hear organizational behavior? Organization?
Behavior?
SLIDE 1 Notes: Field of study – a distinct area of expertise with a common body of knowledge: Levels of
Analyses, Individuals, Group, Organizational or structure
Organizational Behavior
● OB helps the employees navigate a business’ culture and helps managers
understand how that culture helps or hinders employee productivity and
retention.
● Study of what people do in an organization and how their behavior affects the
organization’s performance.
Formal Definition
● A multidisciplinary field that seeks to understand, predict and manage behavior in
organization at the individual, group and organizational level of analyses.
Time & Motion Study = Frederick Taylor
Organizational Behavior History
● Formal study of OB began in the 1890’s. During that time Frank and Lillian Gilbreth and
Frederick Winslow Taylor identified positive effects of precise instructions, goal setting,
and rewards on motivation. In 1911 Taylor published his work “Principles of Scientific
Management”. Henry Ford applied Taylor’s theories in Ford Motor Company in producing
the Ford Model T automobile reducing assembly time and price of the car.
● Scientific management increased the monotony of work.
● After WW1 attention shifted to understanding the role of human factors and psychology
in the organization. This interest was spawned by the Hawthorne Experiment. The
Hawthorne experiment was conducted by Elton Mayo at Western Electric’s Hawthorne
plant.
● The original purpose of the study was to examine how different aspects of the work
environment such as lighting, timing of breaks, and the length of workday had on worker
productivity.
● Mayo stated that the reason workers are more strongly motivated by informal things is
that individuals have a deep psychological need to believe that their organization cares
about them.
Frank Gilbreth
● An American engineer, consultant and author know as scientific management, father &
central figure of “Cheaper by the Dozen”
Lilian Evelyn Moller Gilbreth
● Wife of Frank Gilbreth, an American psychologist, consultant, industrial engineer and
educator who was an early pioneer in applying psychology in time and motion studies.
● Lilian Gilbreth wrote a thesis on the psychology of management and her first notable
publication, “Psychology in the Workplace” was serialized in the journal of the Society of
Industrial Engineers.
Frederick Taylor- Founder- Scientific Management Theory
Henry Gantt - Created the Gantt Chart
George Elton Mayo - Hawthorne Experiment
Taylor’s Theory:
1. Physical work could be scientifically studied to determine the optimal method of
performing a job.
2. Workers could there after be made more efficient by being given prescriptions for how
they were to do their jobs.
3. Workers would be willing to adhere to these prescriptions if paid on "differential piece
work" basis.
Taylor's four principles of scientific management are summarized here:
● Scientifically study each part of a task and develop the best method for performing the
task.
● Carefully select workers and train them to perform the task by using the scientifically
developed method.
● Cooperate fully with workers to ensure that they use the proper method.
● Divide work and responsibility so that management is responsible for planning work
methods using scientific principles and workers are responsible for executing the work
accordingly.
Taylor's ideas on time study, standardization of work practices, goal setting, money as a
motivator, scientific selection of workers and rest pauses have all proved to be successful
techniques of management today.
In the late 1980’s business school curricula emphasized the technical aspects of
management, including:
● Economics
● Accounting
● Finance
● Quantitative Techniques
Incorporating OB principles into the workplace, many important organizational outcomes
has come out, such as:
● Being known as good places to work
● Attract and keep high-performing employees
● Strong associations are made between quality of workplace relationships and employee
job satisfaction, stress, and turnover. Positive social relationships were also associated
with lower stress at work and lower intentions to quit.
● Increasing the OB element in organizations fosters social responsibility awareness.
Organizational culture
● Corporate group behavior – by Elliot Jacques (1951 book The Changing Culture of a
Factory)
● Corporate personality – Flamhotz and Randle (2011)
● Organizational culture influences the way people interact, the context within which
knowledge is created, the resistance they will have towards certain changes, ultimately
the way the share or not share knowledge.
● Organizational culture represents the collective values, beliefs and principles of the
organizational members. It may also be influence by such factors as history, type of
product, market, technology, strategy, type of employees, management style, and
national culture. It includes the organization’s vision, values, norms, systems, symbols,
language, assumptions, environment, location, beliefs and habits.
What do managers do?
● They plan, organize, lead and control.
● They are individuals who achieve goals through other people.
● They have substance, delegation skills, planning skills, productivity and focus, and
performance management skills.
● They are empathetic, results-focused, people-oriented, self-motivated, and passionate
for success.
Basic Management Functions
● Planning – defining the organization’s goals, and means of achieving them, developing
a comprehensive set of plans to integrate and coordinate activities.
● Organizing – designing the organization’s structure, determining the tasks to be done,
who is to do them, how tasks are to be grouped, who reports to whom and where
decisions are made.
● Leading – direct and coordinate those people in the organization, motivate employees,
select the most effective communication channels, resolve conflicts.
● Controlling – monitor organization’s performance vs set goals, if there are significant
deviations, it is management’s job to get the organization back on track.
“A bad job with a good boss is better than a good job with a bad boss.”
Management roles
1. Interpersonal Roles – ceremonial and basic in nature
● Figurehead – symbolic head, required to perform a number of routing duties of a
legal nature
● Leader - motivation and direction of employees
● Liaison – maintains a network of outside contacts who provide favors and
information
2. Informational
● Monitor – receives wide variety of info.; serves as nerve center of internal and
external info.
● Disseminator –transmits information received to members of the organization
● Spokesperson – transmits information to outsiders on organization’s plans,
policies, actions and results
3. Decisional
● Entrepreneur – searches organizations and its environment for opportunities and
initiative projects to bring about change
● Disturbance handler –responsible for corrective action when organization faces
important unexpected disturbances
● Resource allocator – make or approve significant organizational decisions
● Negotiator – representing the organization at major negotiations
Management skills
● Technical skills – ability to apply technical knowledge or expertise
● Human skills –ability to work with, understand and motivate other people both
individually and its groups. Many people are technically proficient but not interpersonally
competent. (poor listeners, inability to handle conflict, etc.)
● Conceptual skills – have the mental ability to analyze and diagnose complex situations
like decision making, etc.
Effective vs. Successful Managerial Activities
● Traditional management – decision making, planning and controlling
● Communication –Exchanging routing information and processing paper work
● Human resource management – Motivating, disciplining, managing conflict, staffing
and training.
● Networking – Socializing, politicking, and interacting with outsiders.
SLIDE 14 NOTES: Review the manager’s job - Regardless of what its called, “leading, interpersonal roles,
human skills, it is clear that managers need to develop their people skills if they are going to be effective
and successful.
Managerial and strategic context of OB
● Managerial And Strategic Context of Organizational Behaviour (coggle.it)
Diversity
● Defined as the differences between people. These differences can include race, gender,
sexual orientation, religion, background, socioeconomic status, and much more.
● Diversity, when talking about it from the human resource management (HRM)
perspective, tends to focus more on a set of policies to meet compliance standards.
● Diversity focuses on the “otherness” or differences between individuals and has a goal of
making sure, through policies, that everyone is treated the same. While this is the legal
and the right thing to do,
Multiculturalism
● goes deeper than diversity by focusing on inclusiveness, understanding, and respect,
and also by looking at unequal power in society.
● Multiculturalism looks at a system of advantages based on race, gender, and sexual
orientation called power and privilege. In this system, the advantages are based on a
system in which one race, gender, and sexual orientation is predominant in setting
societal rules and norms.
Examples are:
a) Race privilege
b) Social class privilege
c) Gender privilege
d) Sexual orientation privilege
SLIDE 17 NOTES: So what does this all mean in relation to HRM? It means we can combine the
understanding of certain systems that allow for power and privilege, and by understanding we may be
able to eliminate or at least minimize these issues. Besides this, one of the best things we can do for our
organizations is to have a diverse workforce, with people from a variety of perspectives. This diversity
leads to profitability and the ability to better serve customers.
PART 1: Introduction to Organizational Behavior (PPT 2 GDRIVE)
CHAPTER 1: An Overview of Organizational Behavior
Chapter Learning Objectives
1. Define organizational behavior and describe how it impacts both personal and
organizational success.
2. Identify the basic management functions and essential skills that comprise the
management process and relate them to organizational behavior.
3. Describe the strategic context of organizational behavior and discuss the relationships
between strategy and organizational behavior.
4. Identify and describe contextual perspectives on organizational behavior.
5. Describe the role of organizational behavior in managing for effectiveness and discuss
the role of research in organizational behavior.
6. Summarize the framework around which this book is organized.
What Is Organizational Behavior?
● Organizational behavior (OB) is the study of:
○ Human behavior in organizational settings
○ The interface between human behavior and the organization
○ The organization itself
The Nature of Organizational Behavior
Why Study OB?
● Studying OB can help you:
○ Become a better employee
○ Become a better manager
○ Understand how people behave and why they do what they do
○ Help you focus on developing a global mindset
● Organizations that successfully implement OB principles have:
○ Motivated, engaged employees whose goals align with business strategy
○ Strong leadership and direction
○ Better bottom lines
Organizational Behavior and the Management Process
● Management functions
○ Planning
○ Organizing
○ Leading
○ Controlling
● Resources used by managers
○ Human
○ Financial
○ Physical
○ Information
Functions of Management
1. Planning - Determining an organization’s desired future position and the best means of
getting there
2. Organizing - Designing jobs, grouping jobs into units, and establishing patterns of
authority between jobs and units
3. Leading - Getting the organization’s members to work together toward the
organization’s goals
4. Controlling - Monitoring and correcting the actions of the organization and its members
to keep them directed toward their goals
Critical Managerial Skills
● Same ragud content sa functions of management idk if sayop
Basic Managerial Functions
Human Resource Management
● Human Resource Management (HRM)
○ The set of organizational activities directed at attracting, developing, and
maintaining an effective workforce
● Questions OB helps HR managers answer
○ Which applicants should be hired?
○ Which rewards will be more motivating than others?
The Strategic Context of OB
● Competitive advantage - An organization’s edge over rivals in attracting customers and
defending itself against competition
● Sources of competitive advantage
○ Innovation
○ Distribution
○ Speed
○ Convenience
○ First to market
○ Cost
○ Service
○ Quality
○ Branding
Types of Business Strategies
1. Cost Leadership - Striving to be the lowest-cost producer for a particular level of
product quality. Emphasizes operational excellence: maximizing the efficiency of the
manufacturing or product development process to minimize costs.
2. Differentiation - Developing a product or service that has unique characteristics valued
by customers. Emphasizes product innovation: developing new products or services.
3. Specialization - Focusing on a narrow market segment or niche and pursuing either a
differentiation or cost leadership strategy within that market segment. Emphasizes
customer loyalty: delivering unique and customizable products or services to meet
customers’ needs and increase customer loyalty.
4. Growth strategy
● Company expansion organically or through mergers and acquisitions
● Response to investor preference for rising earnings
● Success depends on company’s ability to find the right number and types of
employees to sustain growth
5. Integrating business strategies and OB
● Implementation and change require large-scale organizational changes
○ New organizational culture
○ New employee behaviors
Contextual Perspectives of Organizational Behavior—A History
Scientific management
● First formal study of OB (1890s), abandoned after WWI
● Maximized productivity but led to monotonous, dehumanizing conditions
● Guiding principles
○ Replace rule-of-thumb work methods with methods based on scientifically
studying the tasks using time-and-motion studies.
○ Scientifically select, train, and develop all workers rather than leaving them to
passively train themselves.
○ Managers provide detailed instructions and supervision to workers to ensure that
they are following the scientifically developed methods.
○ Divide work nearly equally between workers and managers. Managers should
apply scientific management principles to planning the work, and workers should
actually perform the tasks.
History of Organizational Behavior
Human relations movement
○ Inspired by the Hawthorne effect:
■ Response to investor preference for rising earnings
● Viewed organizations as cooperative systems
● Treated workers’ orientations, values, and feelings as important parts of organizational
dynamics and performance
● Created a new era of more humane, employee-centered management and highlighted
the importance of people to organizational success
● But was hampered by unsound research methods
Contemporary Organizational Behavior
● Contextual Perspectives on Organizational Behavior
○ Systems Perspective
○ Situational Perspective
○ Contingency
○ Interactional
The Systems Perspective
● System
○ An interrelated set of elements that function as a whole—inputs are
combined/transformed by managers into outputs from the system
● Value of the systems perspective
○ Underscores the importance of an organization’s environment
○ Conceptualizes the flow and interaction of various elements of the organization
The Systems Approach to Organizations
The Situational Perspective
● The situational perspective
○ Recognizes that most organizational situations and outcomes are influenced by
other variables
● The universal model
○ Presumes a direct cause-and-effect linkage between variables
○ Complexities of human behavior and organizational settings make universal
conclusions virtually impossible
Universal versus Situational Approach
Interactionalism: People and Situations
Interactionalist perspective
● Focuses on how individuals and situations interact continuously to determine individuals’
behavior
● Attempts to explain how people select, interpret, and change various situations
Managing for Effectiveness
1. Managers’ goals
● Enhance behaviors and attitudes
● Promote citizenship
● Minimize dysfunctional behaviors
● Drive strategic execution
2. Individual behaviors
● Productivity
○ Narrow measure of efficiency: number of products or services created per unit of
input
● Performance
○ Broader concept made up of all work-related behaviors
● Commitment
○ The degree to which an employee considers himself or herself a true member of
the organization, overlooks minor sources of dissatisfaction, and intends to stay
with the organization
3. Organizational citizenship
● Behaviors that make a positive overall contribution to the organization
● Encompasses all factors outside the strict requirements of the job
● Examples
○ Willingness to train new hires
○ Works late/overtime
○ Good attendance
○ Represents the organization well
○ Personal values consistent with the organization
4. Dysfunctional behaviors
● Behaviors that detract from, rather than contribute to, organizational performance
● Examples
○ Absenteeism
○ Turnover
○ Theft, sabotage
○ Harassment, bullying, violence
○ Politicized behavior (spreading rumors, etc.)
○ Incivility, rudeness
○ Workplace violence
5. Strategic execution
● The degree to which managers and their employees understand and carry out the
actions needed to achieve strategic goals
● Assessed at the individual/group level, the organizational level, and in terms of financial
performance
● Often requires balancing seemingly contradictory outcomes
○ For example, paying high salaries can enhance satisfaction and reduce turnover,
but detracts from bottom-line performance.
6. Quality of information: How do we know what we know?
● “Common” sense and intuition and are often wrong—examples where one thing doesn’t
necessarily lead to the other
○ Goals and confidence
○ Satisfaction and productivity
○ Rewards and motivation
● OB relies on the scientific method
The Scientific Method
7. The scientific method
● A theory is a collection of verbal and symbolic assertions that specify how and why
variables are related, and the conditions under which they should and should not relate.
● A hypothesis is a written prediction specifying expected relationships between certain
variables.
● The independent variable is the variable the researchers set.
● The dependent variable is the variable the researchers measure.
○ Example: In an experiment to determine the effect of employee wages on
employee satisfaction, wages are the independent variable and satisfaction is the
dependent variable.
8. Correlation—the strength of the relationship between the two variables
○ Ranges between −1 and +1
○ A correlation of +1 is a perfect positive relationship: as one variable
increases, the other always increases
○ A correlation of −1 is a perfect negative relationship: as one variable
increases, the other always decreases
○ A correlation of 0 means that there is no relationship between the two
variables
● Meta-analysis is used to combine the results of many different research studies
done for a variety or organizations and jobs
● There may not be global replication of behaviors
Interpreting Correlations
The Framework of the Text
How our textbook is organized
● Part 1 (chapters 1–2): environmental factors
● Part 2 (chapters 3–6): individual factors
● Part 3 (chapters 7–10): group factors
● Part 4 (chapters 11–13): leadership
● Part 5 (chapters 14–16): organizational factors
Organizational Behavior Framework
Figure 1.7
An array of environmental, individual, group and team, leadership, and organizational
characteristics impact organizational behavior. If managers understand these concepts and
characteristics they can better promote organizational effectiveness.
Organizational Behavior in Action
Based on your reading of this chapter:
● Some people have suggested that understanding human behavior at work is the single
most important requirement for managerial success. Do you agree or disagree with this
statement? Why?
● Why will learning about OB help you to get a better job and a better career, and be a
better manager?
● What intuitively seems like it should improve employee productivity, but may not prove to
be true if tested systematically? How could you apply the scientific method to test this
theory?
