INTRODUCTION  Organizational is the study of human relation in organization.  To understand individual and group behavior, interpersonal process, organizational dynamics  With the goal of improving the performance of the organizations and the people in them

 So learning about Organizational Behavior can help to: ◦ Develop a better work related understanding about yourself and others ◦ Have a knowledge platform that can expand your potential career success in dynamic and complex workplaces.

A: Organizational Strategy ◦ Organizations are collections of people working together to achieve a common purpose (Implication for your organization?) Let’s Discuss

 A strategy guides organizations to operate in ways that out perform competitors.  Sustainable high performance is achieved only when strategies are well implemented and  It is in respect to implementation that understanding Organizational Behavior becomes especially important  People in the organization make things happens  People make the difference

So leaders and managers need to mobilize and activate human capital and talents to implement strategies. B. Organizational environment Organizations are dynamic open system Open systems transform human and material resource inputs into finished goods and services Stakeholders are people and groups with and interest in the performance of the organization.

Figure 1: Organization as open systems

C. Organizational Culture It is a shared set of beliefs and values within an organization. Figure 2: Insights on organizational cultures

D. Diversity and Multicultural ◦ Workforce diversity-individual differences ◦ Multiculturalism- refers to pluralism and respect for diversity in the workplace

Managers - are responsible for supporting the work efforts of other people Effective managers – is one who helps others achieve high levels of both performance and satisfaction. Task Performance – is the quantity and quality of work produces Job Satisfaction – is a positive feeling about one’s work and work setting.

Figure 3:The Management Process of Planning, Leading and Controlling

Technical skills is an ability to perform specialized task Human skills is the ability to work well with other people – Emotional intelligence (EI) is the ability to manage ourselves and one’s relationship effectively – EI is ability to understand and deals with emotions. – EI is now considered as an important leadership competency.

 Is the ability to analyze and solve complex problems.

 Human Relation Interactions between employers and employees and their attitudes toward one another.  Psychological Contract Set of expectations held by an employee concerning what he or she will contribute to an organization (referred to as contributions) and what the organization will in return provide the employee (referred to as inducements)

 Job Satisfaction Degree of enjoyment that people derive from performing their jobs.  Morale Overall attitude that employees have toward their workplace.

Motivation - The set of forces that cause people to behave in certain ways  Classical theory  Theory holding that workers are motivated solely by money  Behavior Theory: The Hawthorn Studies  Tendency for productivity to increase when workers believe they are receiving special attention from management

 Theory X Theory of motivation holding that people are naturally irresponsible and cooperative.  Theory Y Theory of motivation holding that people are naturally responsible, growth oriented, self-motivated, and interested in being productive

Theory XTheory Y 1. People are lazy 1.People are energetic 2. People lack ambition and dislike responsibility 2. People are ambitious and seek responsibility 3. People are self-centered 3. People can be selfless 4. People resist change 4. People want to contribute to business growth and change 5. People are gullible and not very bright 5. People are intelligent

 Hierarchy of human needs model Theory of motivation describing five levels of human needs and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs.  Two Factor Theory Theory of motivation holding that job satisfaction depends on two types of factors, hygiene and motivation

 Expectancy theory Theory of motivation holding that people are motivated to work toward rewards that they want and that they believe they have a reasonable chance of obtaining.  Equity Theory Theory of motivation holding that people evaluate their treatment by employers relative to the treatment of others.

1. Reinforcement  Theory that behavior can be encouraged or discouraged by means of rewards or punishments 2. Management by Objectives  Set of procedures involving both managers and subordinates in setting goals and evaluations progress

3.Participative Management and Empowerment Method of increasing job satisfaction by giving employees a voice in the management of their jobs and the company 4.Job Enrichment and job Redesign ◦ Job Enrichment  Method of increasing job satisfaction by adding one or more motivating factors to job activities ◦ Job Redesign  Method of Increasing job satisfaction by designing a more satisfactory fit between workers and their jobs  Usually implemented in one of three ways;  Combining tasks  Forming natural work groups  Establishing client relationships

5. Modified Work Schedule a)Work-Share Programs  Method of increasing job satisfaction by allowing two or more people to share a single full-time job b)Flextime Programs  Method of increasing job satisfaction by allowing workers to adjust work schedules on a daily or weekly basis c)Telecommuting  Form of flextime that allows people to perform some or all of a job away from standard office setting

 Leadership ◦ Process of motivating others to work to meet specific objectives  Managerial Style ◦ Pattern of behavior that a manager exhibits in dealing with subordinates  Autocratic Style ◦ Managerial style in which managers generally issue orders and expect them to be obeyed without question

 Democratic Styles ◦ Managerial style in which managers generally ask for input from subordinates but retain final decision-making power  Free-rein style ◦ Managerial style in which managers typically serve as advisers to subordinates who are allowed to make decisions.

 The Contingency Approach to Managerial Style ◦ Approach to managerial style holding that the appropriate behavior in any situation in dependent (contingent) on the unique elements of that situation.  Motivation and Leadership in the Twenty- First Century i.Changing Patterns of Motivation ii.Changing Patterns of Leadership

Phase One Type of GroupGroup Formation Phase Two Group Development stages  Mutual Acceptance  Communication and Decision Making  Motivation and Productivity  Control and Organization Performance Factors  Composition  Size  Norms  Cohesiveness Phase Three: Mature group Group Characteristics  Productive  Adaptive  Self-Correcting Member Characteristics  Interdependent  Coordinated  Cooperative  Competent  Motivated  Communicative Group Decision Making and Interactions with Others Groups

A group is two or more persons who interact with one another that each person influenced by each other person

Relatively PermanentRelatively Temporary Formal  Command groups  Quality assurance department  Cost accounting group  Task groups  Pope’s Special Council on Finances  Task force on new product quality Informal  Friendship groups  Friends who do many activities together (attend the theater, play games, travel)  Interest groups  Bowling group  Women’s network

 Formal Group Are formed by the organization to do its work and usually are included in the organization chart -Command/Functional Group Is a relatively permanent, formal group with functional reporting relationships. -Task Group Is a relatively temporary, formal group established to do a specific task

 Informal groups - Established by their members ◦ Friendship group  Relatively permanent and informal and draws its benefits from the social relationships among its members ◦ Interest group  Relatively temporary and informal and is organized around a common activity or interest of its members

 Mutual acceptance ◦ stage of group development is characterized by members sharing information about themselves and getting to know each other.  Communication and Decision Making ◦ Members discuss their feelings more openly and agree on group goals and individual roles in the group

 Motivation and Productivity ◦ Members cooperate, help each other and work toward task accomplishment  Control and organization ◦ Members work together and are flexible, adaptive, and self-correcting

 Group performance factors including; ◦ Composition ◦ Size ◦ Norms ◦ Cohesiveness  They affect the success of the group in fulfilling its goal

 Group Composition ◦ Degree of similarity or differences in the characteristics of the members on factors important to the group’s work.  SOURCE: Based on discussion in Bernard M. Bass and Edward C. Ryterband, Organizational Psychology, 2 nd ed. A homogeneous group is more useful for : A heterogeneous group is more useful for: Simple tasks Sequential tasks Cooperation required Speed required Complex tasks Collective tasks Creativity required Speed not important

 Group size ◦ Number of members of the group and affects the number of resources available to perform the task  Group norm ◦ Standard against which the appropriateness of a behavior is measured i.Norms help the group survive ii.Norms simplify and make more predictable the behaviors expected of group members iii.Norms help the group avoid embarrassing situations iv.Norms express the central values of the group and identify the group to others

 Group Cohesiveness Factors that affect group cohesiveness and consequences of group cohesiveness Factors that affect group cohesiveness Consequences of high cohesiveness Homogeneous composition Mature development relatively small size Frequent interactions Clear goals (competition or external threat) Success goal accomplishment personal satisfaction of members increased quantity and quality of interactions groupthink

Factors that decrease cohesiveness Consequences of low cohesiveness Heterogeneous composition Recent formation Large size Physical Dispersion Ambiguous Goals Failure Difficulty in achieving goals increased likelihood of disbanding Fewer interactions Individual orientation

 Group Polarization ◦ Tendency for a group’s average post-discussion attitudes to be more extreme than its average pre- discussion attitudes.  Groupthink ◦ Mode of thinking that occurs when members of a group are deeply involved in a cohesive in group and desire for unanimity offsets their motivation to appraise alternative courses of action

 Participation in Decision Making  Important part of managing motivation, leadership, organization structure, and decision-making processes  Group Problem Solving  Brainstorming  Technique used in the alternative generative phase of decision making that assists in development of numerous alternative courses of action  Nominal Group Technique (NGT) Group members follow a generate discussion vote cycle until they reach an appropriate decision.  The Delphi technique Method of systematically gathering judgments of experts for use in developing forecasts

 Interaction among groups are based on the characteristics of the interacting groups, the organizational context within which the groups operate, and the task and situational bases of the interactions  Five factors that determine the nature of group interactions are; ◦ Location ◦ Resources ◦ Time and goal interdependence ◦ Task uncertainty ◦ Task interdependence