Organizational Behavior Organizational Behavior 1

Nature of organization behaviour Do we depend on organizations?

Work in an organization What is organization? Work in an organization A consciously coordinated social (collective) unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.

Why Behavior study??

Different roles What will you do once you join an organization? At the same time what your team lead will do? What will be the role of your organization? Who will be responsible for your performance? Who will be responsible for your team lead’s performance?

INTERDEPENDENCY

Organization= clock work

What Managers Do They get things done through other people. Management Activities: Make decisions Allocate resources Direct activities of others to attain goals 1-9

IMPACT ON EMPLOYEES

suppliers Shareholders Organizations role?? Employees Customers

Challenge

ORGANIZATIONAL BEHAVIOUR

Organization and behaviour Organization meaning Behaviour – manifestation of activity. Covert and overt behaviour. Organization- Job, leadership, communication, structures B=f(P1,E)

Organizational Behavior Organizational Behavior- the study of individual behavior and group dynamics in organizations Photos courtesy of Clips Online, © 2008 Microsoft Corporation 16

Organizational Behaviour Individual Group Organization Organizational Behaviour

Understanding Human Behavior External Perspective: Examining surrounding external events & environmental forces Thoughts Feelings Experiences External Events Behavioral Consequences Internal Perspective: Examining individuals’ history & personal values Environmental Forces Photos courtesy of Clips Online, © 2008 Microsoft Corporation 18

What is Organizational Behavior? Insert Figure 1.1 here 4

Foundation OB

P E O L OB Foundation of OB O R G N I Z A T Individual differerences Social Systems Whole Person Mutuality of interest OB Caused Behaviour Holistic concept Human dignity Foundation of OB

Importance Of OB

OB provides a Road Map to our Lives in organization- Need to know about the world in which we live. Prepare for reactions.

OB uses scientific research to help us understand and predict organizational life.

OB helps an individual understand himself/ herself and others better.

Effective management of all sectors. Marketing, Production, finance, sales, human resource etc.

Interpersonal Skills

Understanding OB helps determine manager effectiveness Technical and quantitative skills are important But leadership and communication skills are CRITICAL Organizational benefits of skilled managers Lower turnover of quality employees Higher quality applications for recruitment Better financial performance 1-28

The organizational context Learnt about human behavior- Internal Understood organizational role. OB requires both an understanding of human behavior + organizational context under specific stettings.

An open Systems View of Organization Task environment: Competitors Unions Regulatory agencies Clients Structure Outputs: Products Services Inputs: Material Capital Human Technology Task People (Actors) Organizational Boundary

Components of an Organization Task - an organization’s mission, purpose, or goal for existing People - the human resources of the organization Structure - the manner in which an organization’s work is designed at the micro level; how departments, divisions, & the overall organization are designed at the macro level Technology - the tools, knowledge, and/or techniques used to transform inputs into outputs

Formal & Informal Elements of Organizations Formal organization (overt/ Explicit) Goals & objectives Policies & procedures Job descriptions Financial resources Authority structure Communication channels Products and services Formal & Informal Elements of Organizations Social Surface Informal organization (covert/hidden) Beliefs & assumptions Perceptions & attitudes Values Feelings, such as fear, joy anger, trust, & hope Group norms Informal leaders Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

Disciplines that contribute to the OB field Page 12 – Hand out

Changing Social and Cultural Environment National Social and culture enviournment- Life style and values, attitude and bliefs Organizational ethics and well-being Diverse work force The first challenge is the changing social and cultural environment. Forces in the social and cultural environment are those that are due to changes in the way people live and work – changes in values, attitudes, and beliefs brought about by changes in a nation’s culture and the characteristics of its people. National culture is the set of values or beliefs that a society considers important and the norms of behavior that are approved or sanctioned in that society. Over time, national cultures change and this affects the values and beliefs of each nation’s members. Ethics scandals have hit many companies recently including Tyco, Adelphia, Enron, and Arthur Andersen. An organization’s ethics are the values, beliefs, and moral rules its managers and employees should use to analyze or interpret a situation and then decide what is the most appropriate way to behave. Ethical organizational behavior affects the well-being (happiness, health, and prosperity) of a nation, an organization, citizens, and employees. Metabolife International’s use of ephedra in its supplements is used as an example in the text. Ethics also define an organization’s social responsibility – its obligations toward people or groups outside the organization that are directly affected by its actions.

Diversity Figure 1.6 illustrates the characteristics used to define the bases of diversity.

Diversity Challenges Fairness and Justice Decision-Making and Performance Flexibility Diversity is differences resulting from age, gender, race, ethnicity, religion, sexual orientation, and socioeconomic background, and capabilities/ disabilities. The increasing diversity of the work force presents three challenges for organizations and their managers: a fairness and justice challenge, a decision-making and performance challenge, and a flexibility challenge. A goal to increase diversity can strain an organization’s ability to satisfy the aspirations of at least part of its work force. Actively recruiting and promoting minorities can lead to difficult equity issues. How can organizations benefit from the attitudes and perspectives of people with diverse backgrounds? The third diversity challenge is to be sensitive to the needs of different kinds of employees and to try to develop flexible employment approaches that increase their well-being. Examples include new benefits packages customized to needs of different groups of employees (e.g., domestic partner benefits), flextime, job sharing, and mentoring.

Challenges to Managing Organizational Behavior Challenges to Managing Organizational Behavior Increasing globalization of organizations’ operating territory Increasing diversity of organizational workforces Continuing demand for higher levels of moral & ethical behavior at work Continuing technological innovation with its companion need for skill enhancement

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