Mgt 233 : Organizational Behavior

Managing People and Organization

Chapter one : managing people and

organization

RICKY W.GRIFFN
GREGORY MOORHEAD

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Chapter Learning Objectives
After studying this chapter you should be able to:

1. Define organizational behavior.

2. Identify the functions that comprise the management
process and relate them to organizational behavior.
3. Relate organizational behavior to basic managerial roles
and skills.
4. Describe contemporary organizational behavior
characteristics.
5. Discuss contextual perspectives on organizational
behavior.
6. Describe the role of organizational behavior in managing
for effectiveness
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 Organizational behavior (OB) is the study of:
◦ Human behavior in organizational settings
◦ The interface between human behavior and the
organization
◦ The organization itself

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The Nature of Organizational Behavior

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 Organizations can have a powerful influence
on our lives:
◦ Most people are born and educated in
organizations
◦ Most people acquire most of their material
possessions from organizations
◦ Most people die as members of organizations
◦ Many of our activities are regulated by
governmental organizations
◦ Most people spend most of their lives in
organizations

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 Studying organizational behavior can clarify
factors that affect how managers manage by:
◦ Describing the complex human context of
organizations
◦ Defining the associated opportunities, problems,
challenges, and issues
◦ Isolating important aspects of the manager’s job
◦ Offering specific perspectives on the human side
of management

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 Studying OB helps managers understand:
◦ The behaviors of others in the organization
 Personal needs, motives, behaviors, feelings and
career dynamics
 Attitudinal processes, individual differences, group
dynamics, inter group dynamics, organization culture,
power, and political behavior
◦ Interactions with people outside of the organization
and other organizations
◦ The environment, technology, and global issues

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 Management  Resources Used
Functions by Managers
◦ Planning ◦ Human
◦ Organizing ◦ Financial
◦ Leading ◦ Physical
◦ Controlling ◦ Information

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Planning Determining an organization’s desired
future position and the best means of
getting there
Organizing Designing jobs, grouping jobs into units,
and establishing patterns of authority
between jobs and units
Leading Getting organizational members to work
together toward the organization’s goals
Controlling Monitoring and correcting the actions of
the organization and its members to keep
them directed toward their goals

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FIGURE 1.2 Basic Managerial Functions

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Managers must play a variety of roles using a set of
critical skills in order to carry out the basic management
functions successfully

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 Basic Managerial Roles

Decision-Making
Interpersonal Informational

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Table 1.1 Important Managerial Roles

Category Role Example

Interpersonal Figurehead Attend employee retirement ceremony
Leader Encourage workers to increase productivity
Liaison Coordinate activities of two committees

Informational Monitor Scan Business Week for information about

competition
Disseminator Send out memos outlining new policies
Spokesperson Hold press conference to announce new plant

Decision-Making Entrepreneur Develop idea for new product and convince

others of its merit
Disturbance handler Resolve dispute
Resource allocator Allocate budget requests
Negotiator Settle new labor contract

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Technical Skills necessary to accomplish
specific tasks within the organization
Interpersonal Skills used to communicate with,
understand, and motivate individuals
and groups
Conceptual Skills used in abstract thinking
Diagnostic Skills to understand cause-effect
relationships and to recognize optimal
solutions to problems

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FIGURE 1.3 Managerial Skills at Different Organizational Levels

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Organizational behavior is characterized by an
interdisciplinary focus and a descriptive nature.

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 Characteristics of the Field
◦ Interdisciplinary in focus
◦ Descriptive in nature

 Basic Concepts of the Field

1. Individual processes
2. Interpersonal processes
3. Organizational processes/characteristics

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1. An Interdisciplinary Focus: Organizational behavior
synthesizes several other fields, including psychology,
sociology, anthropology, political science, economics,
engineering, and medicine

2. A Descriptive Nature : Currently the primary goal of

organizational behavior is to describe, rather than
prescribe, relationships between two or more
behavioral variables. Reasons for organizational
behavior’s descriptive nature include the immaturity of
the field, the complexities of studying human behavior,
and the lack of valid, reliable, and accepted definitions
and measures.

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The concepts of primary concern for organizational
behavior can be grouped into three categories: individual
processes, interpersonal processes, and organizational
processes and characteristics

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1. Individual processes : include individual differences (attitudes,
personalities, etc.), perception, attribution, employee motivation,
learning, reinforcement, and work stress

2. Interpersonal processes : deal with communication in

organizations, groups, teams, leadership, decision making, and
negotiations .

3. Organizational processes and characteristics : include

organization structure, organization design, organization culture,
and organization change and development

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FIGURE 1.4
The Framework
for Understanding
Organizational
Behavior

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 Systems Perspective

Contextual Situational Perspective

Perspectives on
Organizational
Behavior : Contingency

Interactional

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 Several contemporary perspectives have
evolved from the field of organizational
behavior.

 1. A.Systems and Situational Perspectives :

 The systems and situational perspectives are
concerned with interrelationships among
organizational elements and between
organizational and environmental elements.

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 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.

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 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

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FIGURE 1.5 The Systems Approach to Organizations

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FIGURE 1.6 Universal Versus Situational Approach

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 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.

1–
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FIGURE 1.7 The Interactionalist Perspective on Behavior in Organizations

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 Managers work toward accomplishing the various goals
(outcomes) that exist at specific levels in an
organization :

 1. Individual-level outcomes result from individual behaviors,

including productivity, performance, absenteeism, and
turnover. Attitudes and stress are other individual-level
outcomes influenced by managers.

 2.Group and team-level outcomes include productivity,

performance, and attitudes just as individuals do. But groups
may also develop norms of behavior and levels of cohesiveness.

 3.Organization-level outcomes, in addition to those for

individuals and groups, may include measures of financial
performance such as profitability, stock price, return on
investment, growth rate, and so on
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FIGURE 1.8 Managing for Effectiveness

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 Organizational Behavior in Action
• Based on your reading of the chapter opening case:
–What is employee turnover so low at Wegmans?
–Which basic managerial roles and skills is Danny
Wegman using to show his employees that the
organization really cares about them?
–Why haven’t competitors adopted the Wegmans’
employee-focused strategy?

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