1 WHAT IS OB
Content
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…
1–0
Chapter 1. What Is Organisational Behavior
1–1
“The stellar universe is not so difficult of comprehension as the real actions of other people.” – Marcel Proust (French novelist, critic and essayist)
1–2
Manesar violence: 30 trade unions seek CBI probe
Violence at Manesar wasn't pre-planned: Maruti workers
Manesar mayhem: Icra places 14 Maruti suppliers under watch
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
1–3
Why is knowing people and their behaviour in its organisational-situatedness important in the context of business?
http://www.youtube.com/watch?v=D1uob7Rh0EE&featu re=related
1–4
OBJECTIVES LEARNING
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.
1–5
O B J E C T I V E S (cont’d) 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 book’s OB model.
1–6
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
1–7
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.
1–8
Management Functions
Planning
Organizing
Management Functions
Controlling Leading
1–9
Management Functions (cont’d) Planning
A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
1–10
Management Functions (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.
1–11
Management Functions (cont’d) Leading
A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
1–12
Management Functions (cont’d) Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
1–13
Mintzberg’s 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 1–1 1–14
Mintzberg’s Managerial Roles (cont’d)
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 1–1 (cont’d) 1–15
Mintzberg’s Managerial Roles (cont’d)
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 1–1 (cont’d) 1–16
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.
1–17
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
1–18
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 1–2 1–19
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 organization’s effectiveness.
1–20
Hmm!
1–21
Young?
1–22
Old?
1–23
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) 1–24
The purpose of OB is to …
© 2005 Prentice Hall Inc. All rights reserved.
1–25
… 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.
© 2005 Prentice Hall Inc. All rights reserved. 1–26
Intuition vs. Systematic Study
• Gut feelings • Individual observation • Common sense
Intuition
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
1–28
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
1-29
Contributing Disciplines
Many branches of social sciences have contributed to the development of Organizational Behavior
Psychology
Social Psychology
Sociology
Anthropology
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
1-30
Contributing Disciplines to the OB Field
Psychology
The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.
E X H I B I T 1–3 (cont’d) 1–31
Contributing Disciplines to the OB Field (cont’d)
Sociology
The study of people in relation to their fellow human beings.
E X H I B I T 1–3 (cont’d) 1–32
Contributing Disciplines to the OB Field (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.
E X H I B I T 1–3 (cont’d) 1–33
Contributing Disciplines to the OB Field (cont’d)
Anthropology
The study of societies to learn about human beings and their activities.
E X H I B I T 1–3 (cont’d) 1–34
Contributing Disciplines to the OB Field (cont’d)
Political Science The study of the behavior of individuals and groups within a political environment.
E X H I B I T 1–3 (cont’d) 1–35
Toward an OB Discipline
E X H I B I T 1–3 1–36
Few Absolutes in OB
Situational factors that make the main relationship between two variables change—e.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!”
1-37
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.
x
Contingency Variables
y
1–38
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
1–39
Major Workforce Diversity Categories
Gender Disability Age Religion Regional Origin
Race Sexual Orientation
E X H I B I T 1–5 1–40
Challenges and Opportunities for OB (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
1–41
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 1–6 1–42
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.
1–43
Challenges and Opportunity for OB (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
1–44
Basic OB Model, Stage I
Model
An abstraction of reality. A simplified representation of some real-world phenomenon.
E X H I B I T 1–7 1–45
The Dependent Variables Dependent variable
A response that is affected by an independent variable.
y
x
1–46
The Dependent Variables (cont’d)
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.
1–47
The Dependent Variables (cont’d)
Absenteeism
The failure to report to work.
Turnover
The voluntary and involuntary permanent withdrawal from an organization.
1–48
The Dependent Variables (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.
1–49
The Dependent Variables (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.
1–50
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
1–51
Basic OB Model, Stage II
E X H I B I T 1–8 1–52
… 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…
1–0
Chapter 1. What Is Organisational Behavior
1–1
“The stellar universe is not so difficult of comprehension as the real actions of other people.” – Marcel Proust (French novelist, critic and essayist)
1–2
Manesar violence: 30 trade unions seek CBI probe
Violence at Manesar wasn't pre-planned: Maruti workers
Manesar mayhem: Icra places 14 Maruti suppliers under watch
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
1–3
Why is knowing people and their behaviour in its organisational-situatedness important in the context of business?
http://www.youtube.com/watch?v=D1uob7Rh0EE&featu re=related
1–4
OBJECTIVES LEARNING
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.
1–5
O B J E C T I V E S (cont’d) 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 book’s OB model.
1–6
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
1–7
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.
1–8
Management Functions
Planning
Organizing
Management Functions
Controlling Leading
1–9
Management Functions (cont’d) Planning
A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
1–10
Management Functions (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.
1–11
Management Functions (cont’d) Leading
A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
1–12
Management Functions (cont’d) Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
1–13
Mintzberg’s 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 1–1 1–14
Mintzberg’s Managerial Roles (cont’d)
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 1–1 (cont’d) 1–15
Mintzberg’s Managerial Roles (cont’d)
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 1–1 (cont’d) 1–16
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.
1–17
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
1–18
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 1–2 1–19
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 organization’s effectiveness.
1–20
Hmm!
1–21
Young?
1–22
Old?
1–23
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) 1–24
The purpose of OB is to …
© 2005 Prentice Hall Inc. All rights reserved.
1–25
… 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.
© 2005 Prentice Hall Inc. All rights reserved. 1–26
Intuition vs. Systematic Study
• Gut feelings • Individual observation • Common sense
Intuition
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
1–28
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
1-29
Contributing Disciplines
Many branches of social sciences have contributed to the development of Organizational Behavior
Psychology
Social Psychology
Sociology
Anthropology
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
1-30
Contributing Disciplines to the OB Field
Psychology
The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.
E X H I B I T 1–3 (cont’d) 1–31
Contributing Disciplines to the OB Field (cont’d)
Sociology
The study of people in relation to their fellow human beings.
E X H I B I T 1–3 (cont’d) 1–32
Contributing Disciplines to the OB Field (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.
E X H I B I T 1–3 (cont’d) 1–33
Contributing Disciplines to the OB Field (cont’d)
Anthropology
The study of societies to learn about human beings and their activities.
E X H I B I T 1–3 (cont’d) 1–34
Contributing Disciplines to the OB Field (cont’d)
Political Science The study of the behavior of individuals and groups within a political environment.
E X H I B I T 1–3 (cont’d) 1–35
Toward an OB Discipline
E X H I B I T 1–3 1–36
Few Absolutes in OB
Situational factors that make the main relationship between two variables change—e.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!”
1-37
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.
x
Contingency Variables
y
1–38
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
1–39
Major Workforce Diversity Categories
Gender Disability Age Religion Regional Origin
Race Sexual Orientation
E X H I B I T 1–5 1–40
Challenges and Opportunities for OB (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
1–41
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 1–6 1–42
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.
1–43
Challenges and Opportunity for OB (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
1–44
Basic OB Model, Stage I
Model
An abstraction of reality. A simplified representation of some real-world phenomenon.
E X H I B I T 1–7 1–45
The Dependent Variables Dependent variable
A response that is affected by an independent variable.
y
x
1–46
The Dependent Variables (cont’d)
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.
1–47
The Dependent Variables (cont’d)
Absenteeism
The failure to report to work.
Turnover
The voluntary and involuntary permanent withdrawal from an organization.
1–48
The Dependent Variables (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.
1–49
The Dependent Variables (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.
1–50
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
1–51
Basic OB Model, Stage II
E X H I B I T 1–8 1–52
