OB NOTES

1. ORGANIZATIONAL BEHAVIOR
T E N T H E D I T I O N

2. OBJECTIVES AFTER STUDYING THIS CHAPTER AND
LISTENING TO MY LECTURE,I HOPE THTAT
YOU WILL BE ABLE TO:
1. Define organizational behavior (OB).
2. Describe the manager’s functions, roles and
LEARNING
skills.
3. Identify the contributions made by major
behavioral science disciplines to OB.
4. List the major challenges and opportunities
for managers to use OB concepts.
5. Compare the three levels of analysis in the OB
model.

3. What is Organizational Behavior?
It is 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 towards improving an
organization’s effectiveness.

4. Example - What is Organizational Behavior?
Example:
Microsoft understands how organizational behavior affects
an organization’s performance. So the company maintains
good employee relationships by providing a great work
environment, generous, benefits and challenging jobs.
Other benefits such as laundry services, free grocery
delivery and take home meals, helps employees focus on
their work. According to Microsoft, the employee loyalty and
productivity are high, contributing to the company’s growth
to $44billion in revenue since its founding in 1975.

5. What Managers Do?
Managers
- Someone who works with and through other people by
coordinating their work activities in order to accomplish
organizational goals.
Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to
attain goals

6. Where Managers Work?

7. Organizational levels
Top
Managers
Middle
Managers
First-line
Managers
Non-managerial Employees
OR Operatives

8. Identifying Managers
Non-Managerial / Operatives- People who are directly on a job or
task and have no responsibility for overseeing the work of others.
First-line managers - manage the work of non-managerial
individuals or also known as operative employees, who are
directly involved with the production or creation of the
organization’s products
Middle managers - all managers between the first-line level and
the top level of the organization and manages the first-line
managers
Top managers - responsible for making decisions about the
direction of the organization and establishing the plans and goals
that affect the entire organization

9. What is Management?
Management
-The process of coordinating work activities so that they are
completed efficiently and effectively with and through other
people.
Definitions
 Process - represents ongoing functions or primary activities
engaged in by managers
 Coordinating - distinguishes a managerial position from a non-
managerial one
 Efficiency - getting the most output from the least amount of
inputs. Meaning “doing things right”.
 Effectiveness - completing activities so that organizational goals
are attained. Meaning “doing the right things”.

10. What is Management?
Efficiency (Means) Effectiveness (Ends)
Resource Goal
Usage Attainment
Low Waste High Attainment
Management Strives For:
Low resource waste (high efficiency)
High goal attainment (high effectiveness)

11. Management Functions
- It is a set of ongoing decisions and work activities in which
managers engage as they plan, organize, lead and control.
- This functions are usually done in continuous manner.
Planning Organizing
Management
Functions
Controlling Leading

12. Management Functions (cont’d)
Planning
- Defining goals, establishing
strategies for achieving
those goals, and developing
plans to integrate and
coordinate activities.
- There are evidence that
indicates that this function is
the one that increases the
most as managers move
from lower-level to midlevel
management.

13. Management Functions (cont’d)
Organizing
- Managers are responsible
for designing an
organization’s structure.
- Includes 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 made.

14. Management Functions (cont’d)
Leading
- Every organization contains
people and its manager’s job
to direct and coordinate
people.
- A function that includes
motivating employees,
directing the activities of the
others, select the most
effective communication
channels or resolve conflicts
among with employee.

15. Management Functions (cont’d)
Controlling
- Managers should ensure
things are going as they should
and must monitor
organization’s performance.
Actual performance are
compared with the previously
set goals. So if there is any
deviations, it is manager’s job
to get the organization back on
track.
- The process of monitoring
performance, comparing it with
goals and correcting any
significant deviations.

16. Mintzberg’s Managerial Roles
The Mintzberg concluded that managers perform 10 different,
highly interrelated roles or sets of behaviors which is
attributable to their jobs.
These 10 roles can be grouped into 3 primary categories:
(i) Interpersonal (iii) Decisional
- Figurehead - Entrepreneur
- Leader - Disturbance handler
- Liaison - Resource Allocator
- Negotiator
(ii) Informational
- Monitor
- Disseminator EXHIBIT 1-1a
- Spokesperson

17. Mintzberg’s Managerial Roles
 Interpersonal
- involve people and duties that are ceremonial and symbolic
in nature
 Figurehead
- Symbolic head obliged to perform number of routine duties
of legal or social nature
 Leader
- Responsible for motivation of subordinates, responsible for
staffing, training, and associated duties. This role includes
hiring, training, motivating and disciplining employees.
EXHIBIT 1-1a

18. Mintzberg’s Managerial Roles
 Liaison
- Maintains self developed network of outside contacts and
informers who provide favors and information
- This can be described as contacting outsiders to provide
the manager with information. This may be individuals or
group inside or outside the organization.
EXHIBIT 1-1a

19. Mintzberg’s Managerial Roles
 Informational
- receiving, collecting, and disseminating information
 Monitor
- seeks and receives wide variety of internal and external
information to develop thorough understanding of
organization and environment
 Disseminator
- Transmits information received from outsiders and insiders
to members of the organization
 Spokesperson
- Transmits information to outsiders on organization plans,
EXHIBIT 1-1a
policies, actions, results

20. Mintzberg’s Managerial Roles
 Decisional
- revolve around making choices
 Entrepreneur
- searches organization and environment for opportunities
and initiates” improvement projects” to bring about the
changes.
 Disturbance handler
- Responsible for corrective action when organization faces
unexpected disturbances
 Resource Allocator
- Responsible for allocation of organizational human,
physical and monetary resources of all kinds EXHIBIT 1-1a

21. EXAMPLE : Mintzberg’s Managerial Roles
EXHIBIT 1-1a

22. Management Skills
There are 3 essential management skills :
 Technical Skills
 Human Skills
 Conceptual Skill

23. Management Skills
 Technical Skills
- Encompass the ability to apply specialized knowledge or
expertise.
- E.g. Skill of professionals such as oral surgeons or civil
engineers, typically focus on their technical skills.
 Human Skills
- Ability to work with, understand and motivate other people,
both individually and in groups. All Managers should have
this skills to communicate, motivate and delegate since they
get things done through people.
 Conceptual Skill
- Mental ability to analyze and diagnose complex situations.
For instances, decision making requires managers to
identify problems, develop solutions, evaluate and select

24. Effective Versus Successful Managerial
Activities (Luthans)
There are 4 managerial activities:
3. Traditional management
• Decision making, planning, and controlling
4. Communications
• Exchanging routine information and processing paperwork
5. Human resource management
• Motivating, disciplining, managing conflict, staffing, and
training
6. Networking
• Socializing, politicking, and interacting with others

25. Allocation of Activities by Time
EXHIBIT 1-2

26. Contributing Disciplines to the OB Field
There are 4 major contributions to the study of OB:
 Psychology
 Social Psychology
 Sociology
 Anthropology
EXHIBIT 1-3a

27. Contributing Disciplines to the OB Field
 Psychology
- The science that seeks to measure, explain, and
sometimes change the behavior of humans and other
animals.
- Psychologist concern themselves with studying and
attempting to understand individual behavior.
- Organizational psychologist are concerned themselves
with the problems of fatigue, boredom, and other factors
relevant to working conditions that could impede efficient
work performance.
 Contribution to OB
- Learning, motivation, personality, emotions, perception,
training, leadership effectiveness, job satisfaction
Individual decision making, performance appraisal E X H I B I T 1-3a
attitude measurement, employee selection, work design,
and work stress

28. 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.
- Social psychologists have made important contributions to
study of group behaviors.
- We can see psychologists making significant contributions
in the areas of measuring, understanding and changing
attitudes, communication patterns and building trust, with the
changes done in one of the major area by the Social
psychologists
 Contribution to OB
- Behavioral change, Attitude change, Communication,
Group processes, Group decision making. EXHIBIT 1-3b

29. Contributing Disciplines to the OB Field (cont’d)
 Sociology
- The study of people in relation to their fellow human
beings. It studies the people in relation to their social
environment or culture.
- Sociologists have contributed to OB through their study of
group behavior and organizational system.
 Contribution to OB
- Group dynamics, Work teams, Communication, Power
Conflict, Intergroup behavior, Formal organization theory
Organizational technology, Organizational change
Organizational culture.
EXHIBIT 1-3c

30. Contributing Disciplines to the OB Field (cont’d)
 Anthropology
- The study of societies to learn about human beings and
their activities.
- Anthropologists have contributed to OB through their study
of organizational system.
- Anthropologists work on cultures and environments which
has helped to understand differences in fundamental values,
attitudes and behavior between people in different countries
and within different organizations.
 Contribution to OB
- Organizational culture, organizational environment,
comparative values, comp
EXHIBIT 1-3d

31. Challenges and Opportunity for OB
 Responding to Globalization
 Managing Workforce Diversity
 Improving Quality and Productivity
 Improving Customer Service
 Improving People Skills
 Coping with “Temporariness”
 Working in Networked organizations
 Helping Employees Balance Work/Life Conflicts
 Creating a positive work environment
 Improving Ethical Behavior

32. Challenges and Opportunity for OB
 Responding to Globalization
- organizations are no longer constrained by national borders.
- e.g. Burger king is owned by a British firm and ExxonMobil is
an American company but almost 75% of their revenue is from
sales outside the United States.
- Due to this, the manager’s job has changed due to the below:
(i) Increased foreign assignments
(ii) Working with people from different cultures
(iii) Overseeing movements of jobs to countries with low-cost
labor.

33. Challenges and Opportunity for OB
 Managing Workforce Diversity
- One of the most important and broad-based challenges
currently faced by the organization is adapting to people who
are different.
- The terms that we use for describing this challenge is
workforce diversity.
- The globalization focuses on differences between people from
different countries, workforce diversity addresses differences
among people within given countries.
- Workforce diversity means that organizations are becoming a
more heterogeneous mix of people in terms of gender, age,
race and ethnicity. A diverse workforce, for instance, includes
women, people of color, the physically disabled, senior citizens
and domestic partners.

34. Developing an OB Model
- A model is an abstraction of reality: a simplified representation of
some real-world phenomenon.
- There are 3 level of analysis in OB model and all the three basic
levels are analogous to building blocks, where each level is
constructed on the previous level.
EXHIBIT 1-6

35. Types of Study Variables
- There are 2 types:
 Dependent Variables (Y)
-It is the key factor that need to be explained or predicted and
affected by an independent variable.
- It is the what the OB researched want to predict or explain on the
independent variable.
 Independent Variables (X)
-It is the presumed cause of some change in a dependent variable.
- It is the variable that OB researches manipulate to observe the
changes in dependent variables.

36. The Dependent Variables (cont’d)
Productivity
-It is a performance measure that
includes effectiveness and
efficiency.
-It also transforms inputs to
outputs at lowest cost.
Effectiveness
- Achievement of goals
Efficiency
- Meeting goals at a low cost.

37. The Dependent Variables (cont’d)
Absenteeism Turnover
- Defined as failure to report to - It is the voluntary and
work. involuntary permanent
withdrawal from an
- It is a huge cost and organization.
disruption to employers.
- A high turnover rate results in
- With this, it is difficult for an increased recruiting, selection
organization to operate and training costs.
smoothly and to attain its
objectives if employees fail to - In addition, a high rate of
report to their jobs. turnover can disrupt the efficient
running of an organization when
knowledgeable and
experienced personnel leave
and replacements needed.

38. The Dependent Variables (cont’d)
Deviant workplace behavior Organizational Citizenship
Behavior (OCB)
- This is also called as
antisocial behavior or - It is the discretionary behavior
workplace incivility. that is not part of an employee’s
formal job requirements but that
- It is the voluntary behavior promotes the effective
that violates significant functioning of the organization.
organizational norms and in
doing so, threatens the well - Successful organizations need
being of the organization or its employee’s who will do more
members. than their usual job duties,
those who will provide
- This is an important concept performance that is beyond
because it is a response to expectations.
dissatisfaction and employees
express this dissatisfaction in
many ways.

39. The Dependent Variables (cont’d)
Job satisfaction
-It is a positive feelings about one’s job resulting from an
evaluation of its characteristics.
- It is a general attitude towards one’s job, the difference between
the amount of reward workers receive and the amount they
believe they should receive.

40. The Independent Variables
Independent Variable
-It is the presumed cause of some change in a dependent
variable.
Independent
Variables
Individual-Level Group-Level Organization
Variables Variables System-Level
Variables