What is Organizational Behavior?

Lecturer: Do Tien Long 09 04 51 54 46 dotienlong_mc@yahoo.com.vn

Organisational Behavior, Do Tien Long

OBJECTIVES

After studying this chapter, you should be able to:

1. Describe what managers do. 2. Define organizational behavior (OB). 3. Explain the value of the systematic study of OB. 4. Identify the contributions made by major behavioral science disciplines to OB. 5. List the major challenges and opportunities for managers to use OB concepts.
Organisational Behavior, Do Tien Long

LEARNING

What Managers Do What Managers Do

Managers (or administrators)
Individuals who achieve goals through other people.

Managerial Activities Managerial Activities Make decisions Make decisions Allocate resources Allocate resources Direct activities of others Direct activities of others to attain goals to attain goals
Organisational Behavior, Do Tien Long

Where Managers Work 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.

Organisational Behavior, Do Tien Long

Management Functions Management Functions

Planning Planning Organizing Organizing

Management Management Functions Functions

Controlling Controlling Leading Leading

Organisational Behavior, Do Tien Long

Management Functions (contd) Management Functions (contd)

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

Organisational Behavior, Do Tien Long

Management Functions (contd) 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.

Organisational Behavior, Do Tien Long

Management Functions (contd) Management Functions (contd)

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

Organisational Behavior, Do Tien Long

Management Functions (contd) Management Functions (contd)

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

Organisational Behavior, Do Tien Long

Mintzbergs Managerial Roles 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 E X H I B I T 11

Organisational Behavior, Do Tien Long

Mintzbergs Managerial Roles (contd) 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) E X H I B I T 11 (contd)

Organisational Behavior, Do Tien Long

Mintzbergs Managerial Roles (contd) 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) E X H I B I T 11 (contd)

Organisational Behavior, Do Tien Long

Management Skills 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.
Organisational Behavior, Do Tien Long

Skills Needed at Different Levels of Management

Top management Middle management First-line management
Human Technical Human Human Technical Conceptual ConCe ptual Conceptual

Technical

Organisational Behavior, Do Tien Long

Effective Versus Successful Managerial Effective Versus Successful Managerial Activities (Luthans) Activities (Luthans)
1. Traditional management 1. Traditional management
Decision making, planning, and controlling Decision making, planning, and controlling

2. Communication 2. Communication
Exchanging routine information and processing Exchanging routine information and processing paperwork paperwork

3. Human resource management 3. Human resource management

Motivating, disciplining, managing conflict, staffing, Motivating, disciplining, managing conflict, staffing, and training and training

4. Networking 4. Networking
Socializing, politicking, and interacting with others Socializing, politicking, and interacting with others
Organisational Behavior, Do Tien Long

Allocation of Activities by Time Allocation of Activities by Time

Organisational Behavior, Do Tien Long

Willsons managerial skills on 11 observable categories

Skills Exhibited by an Effective Manager
1. Clarifies goals and objectives for everyone involved 2. Encourage participation, upward communication, and suggestion 3. Plans and organizes for an orderly work flow 4. Has technical and administrative expertise to answer organization-related questions 5. Facilitates work though team building, training, coaching, and support 6. Provides feedback honestly and constructively 7. Keeps things moving by relying on schedules, deadlines, and helpful reminders 8. Controls details without being overbearing 9. Applies reasonable pressure for goals accomplishment 10. Empowers and delegates key duties to others while maintaining goal clarity & commitment 11. Recognizes good performance with rewards and positive reinforcement
Organisational Behavior, Do Tien Long

Evolution of the 21st Century Manager - Robert Kreitner & Angelo Kinicki
Past Managers Primary role Learning & Knowledge Compensation criteria Cultural orientation Primary source of influence View of people Primary com.cation pattern Decision-making style Ethical considerations Nature of interpersonal relationships Handling of power and key information Approach to change Order giver, privileged elite, controller Periodic learning, narrow specialist Time, effort, rank Monocultural, monolingual Formal authority Potential problem Vertical Limited input for individual decisions Afterthought Competitive (win lose) Hoard and restrict access Resist Future Managers Facilitator, team member, teacher, sponsor Long-life learning, generalist with multiple specialties Skills and results Multicultural, multilingual Knowledge (technical and interpersonal Primary resource Multidirectional Broad-based input for joint decisions Forethought Cooperative (win win) Share and broaden access

Facilitate Organisational Behavior, Do Tien Long

Enter Organizational Behavior 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.

Organisational Behavior, Do Tien Long

Intuition

Complementing Intuition with Complementing Intuition with Systematic Study Systematic Study

Gut feelings about why I do what I do and what makes others tick.

Systematic study
Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. Provides a means to predict behaviors.
Organisational Behavior, Do Tien Long

Influences on OB.
Individuals Groups The organisation itself The environment
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Individuals
Are a central feature of OB Are a necessary part of any behavioural set Bring to the organisation their personality, skills and attributes, values, needs and expectations Can create conflict if their needs and the demands of the organisation are incompatible

Organisational Behavior, Do Tien Long

Management and the individual

Managements task is to integrate the individual & the organisation, providing a working environment that permits the satisfaction of individual needs & attainment of organisation goals

Organisational Behavior, Do Tien Long

Groups
Exist in all organisations Are essential to organisational working and performance Comprise a range of different individuals Can develop their own hierarchies and leaders
Organisational Behavior, Do Tien Long

Groups
Can have a major influence on behaviour and performance of individual members Have their own structures and functions, role relationships and influences and pressure An understanding of group structure and behaviour complements a knowledge of individual behaviour
Organisational Behavior, Do Tien Long

The organisation
Individuals & groups interact within the structure of the formal organisation Organisational structure is created by management to: - establish a relationship between individuals & groups - provide order and systems to direct efforts of the organisationOrganisational Behavior, Do Tien Long activities into goal seeking

The organisation
The formal structure allows people/groups to carry out organisational activities to achieve aims & objectives Behaviour is affected by patterns of organisational structure
Organisational Behavior, Do Tien Long

Environment
The environment affects the organisation through: technological & scientific development economic activity social & cultural influences government activities

Organisational Behavior, Do Tien Long

Environment
The effects of the operation of the organisation within its environment are reflected in the: management of opportunities & risks successful achievement of organisational aims & objectives
Organisational Behavior, Do Tien Long

Organisational Behavior, Do Tien Long

Psychology

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

Organisational Behavior, Do Tien Long

Contributing Disciplines to the OB Field (contd)

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

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

Organisational Behavior, Do Tien Long

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

Organisational Behavior, Do Tien Long

Contributing Disciplines to the OB Field (contd)

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

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

Organisational Behavior, Do Tien Long

Behavioural science a multidisciplinary approach

Personality system (psychology) Social system (Sociology)

Cultural system (Anthropology)

Economics

Political science

Organisational Behavior, Do Tien Long

Why Do We Study OB?

To learn about yourself and how to deal with others You are part of an organization now, and will continue to be a part of various organizations Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time Some of you may want to be managers or entrepreneurs
Organisational Behavior, Do Tien Long

The importance of the study of organizational behaviour

In its concern for the way people behave in an organizational context, organizational behaviour can be regarded as the key to the whole area of management The more technical a managers training, the more important organisational behaviour becomes

Organisational Behavior, Do Tien Long

The organisational iceberg

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, SouthWestern Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

Organisational Behavior, Do Tien Long

The organisational iceberg Formal (overt) aspects

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

Organisational Behavior, Do Tien Long

The organisational iceberg Behavioural (covert) aspects

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

Organisational Behavior, Do Tien Long

The organisational iceberg Formal (overt) aspects

Customers Technology Formal goals Organisational design Financial resources Physical facilities Rules & regulations Surface competencies & skills
Organisational Behavior, Do Tien Long

The organisational iceberg Behavioural (covert) aspects

Attitudes Communication patterns Informal team processes Personality Conflict Political behaviour Underlying competencies & skills
Organisational Behavior, Do Tien Long

Morgans 8 ways of viewing organizations

1. Machines 2. Organisms 3. Brains 4. Cultures 5. Political systems 6. 7. Psychic prisons Flux & transformation

8. Instruments of domination The metaphors are not fixed categories and are not mutually exclusive
Organisational Behavior, Do Tien Long

1. Machines
Organizations can be designed as machines with orderly relations between clearly defined parts This view can provide the basis for efficient operation in a routine, reliable and predictable way bureacratic structure However it may limit the development of human capacities
Organisational Behavior, Do Tien Long

2. Organisms
The organization is seen as a living system; in the same way that biological mechanisms adapt to changes in their environment Organizations operating within a turbulent and dynamic environment require a adaptable type of structure

Organisational Behavior, Do Tien Long

3. Brains
Involves thinking about the organization as inventive and rational, and in a manner that provides for flexibility and creative action The challenge is to create new forms of organization capable of intelligent change and that can disperse brain like capacities

Organisational Behavior, Do Tien Long

4. Cultures
Sees organizations as complex system made up of their own characteristic sets of ideology, values, rituals, and systems of belief and practice Attention to specific aspects of social development helps to account for variations among organizations

Organisational Behavior, Do Tien Long

5. Political systems
Create order and direct people, organizations are intrinsically political They are about authority, power, superiorsubordinate relationships and conflicting of interests This view helps in a understanding of day-to-day organizational life, the wheeling and dealing, and pursuit of special interests
Organisational Behavior, Do Tien Long

6. Psychic prisons
View organizations as psychic phenomena created and sustained by conscious and unconscious processes Organizations and their members are constrained by their shadows or psychic prisons and become trapped by constructions of reality This view provides an understanding of the reality and illusions of organizational behaviour
Organisational Behavior, Do Tien Long

7. Flux and transformation

Everything is in a constant state of flux, embodying characteristics of both permanence and change Organizations can be seen as in a state of flux and transformation To understand the nature and social life of organizations, it is necessary to understand the sources and logic of transformations and change
Organisational Behavior, Do Tien Long

8. Instruments of domination
Organizations are associated with processes of domination, and individuals and groups impose their will on others A feature of organizations is a symmetrical power relation that result in the pursuit of the goals of the few through the efforts of the many

Organisational Behavior, Do Tien Long

Management as an integrating activity

Organisational Behavior, Do Tien Long

The psychological contract

The series of mutual expectations & satisfaction of needs arising from the people / organisational relationship Process of giving & receiving by the individual & the organisation Covers a range of expectations of rights and privileges, duties and obligations that do not form part of the formal agreements but still has important influence of peoples behaviour The significant of the contract depends on the extent it is perceived to be fair
Organisational Behavior, Do Tien Long

Group practice
The class is divided into two groups:
Group 1 represents the organization: do you expect from the employees? Group 2 represents the employees: What do you expect from the organization? What

Organisational Behavior, Do Tien Long

Individuals expectations
Provide safe and hygienic working conditions Make every reasonable effort to provide job security Attempt to provide challenging and satisfying jobs and reduce alienating aspects of work Adopt equitable personnel policies and procedures Allow staff genuine participation in decisions which affect them Implement best practice in equal opportunity policies and procedures Provide reasonable opportunities for personal development and career progression Treat members of staff with respect Demonstrate an understanding and considerate attitude towards personal Organisational Behavior, Do Tien Long problems of staff

The organizations expectation

To accept the ideology of the organization To work diligently in pursuit of organizational objectives Not to abuse goodwill shown by management To uphold the image of the organization To show loyalty Not to be betray positions of trust To observe reasonable and acceptable standards of dress and appearance Behavior, Do Tien Long Organisational

Process of balancing
It is unlikely that all expectations of the individual or of the organisation will be met fully There is a continual process of balancing, and explicit and implicit bargaining

Organisational Behavior, Do Tien Long

Formula for balancing unwritten needs of employees with the needs of the organisation
Caring demonstrating genuine concern for individuals Communicating really talking about what the company hopes to achieve Listening hearing not only the words but also what lies behind the words Knowing - those who work for you, their families, personal wishes, desires & ambitions Rewarding money is not always necessary Stalker

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There Are Few Absolutes in OB

Contingency variables: "It Depends!!!"

Organisational Behavior, Do Tien Long

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 people during the war on terror.

Managing Workforce Diversity

Embracing diversity Changing U.S. demographics Implications for managers
Recognizing and responding to differences
Organisational Behavior, Do Tien Long

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
Organisational Behavior, Do Tien Long

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 E X H I B I T 16

Organisational Behavior, Do Tien Long

Challenges and Opportunity for OB (contd)

Improving People Skills Empowering People Stimulating Innovation and Change Working in Networked Organizations Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior

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A Downside to Empowerment?

Organisational Behavior, Do Tien Long

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 1-6 E X H I B I T 1-6

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The Dependent Variables

Dependent variable
A response that is affected by an independent variable (what organizational behavior researchers try to understand).

x
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The Dependent Variables (contd)

Productivity A performance measure that includes effectiveness and efficiency. Effectiveness Achievement of goals. Efficiency Meeting goals at a low cost.

Organisational Behavior, Do Tien Long

The Dependent Variables (contd)

Absenteeism
The failure to report to work.

Turnover
The voluntary and involuntary permanent withdrawal from an organization.
Organisational Behavior, Do Tien Long

The Dependent Variables (contd)

Deviant Workplace Behavior
Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.

Organisational Behavior, Do Tien Long

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.

Organisational Behavior, Do Tien Long

The Dependent Variables (contd)

Job satisfaction
A general attitude (not a behavior) toward ones job; a positive feeling of one's job resulting from an evaluation of its characteristics.

Organisational Behavior, Do Tien Long

The Independent Variables

Independent variable
The presumed cause of some change in the dependent variable; major determinants of a dependent variable. Independent Independent Variables Can Be Variables Can Be

Individual-Level Individual-Level Variables Variables

Group-Level Group-Level Variables Variables

Organisational Behavior, Do Tien Long

Organization Organization System-Level System-Level Variables Variables

Challenges Facing the Workplace

Organizational Level
Productivity Developing Effective Employees Global Competition Managing in the Global Village

Group Level
Working With Others Workforce Diversity

Workplace

Individual Level
Job Satisfaction Empowerment Behaving Ethically

Organisational Behavior, Do Tien Long