1. FUNDAMENTALS OF ORGANIZATIONAL BEHAVIOR
GIOVANNI T. MACAHIG, DM-HRM

2. The Dynamics of people and organizations
A primary goal of management education is to develop students into managers who can think ahead, exercise good judgment, make ethical decisions, and take into consideration the implications of their proposed actions – Jane Schmidt-Wilk

3. Premises Organizations are complex systems.
Organizations are complex systems.
Need to understand how the system operates esp. in a sociotechnical system – humanity and technology.
Human behavior in organizations is sometimes unpredictable
Behaviors may come from deep-seated needs, lifetime experiences and personal value systems
Human behavior in a organization can be partially understood
Applying the frameworks of behavioral science, management and other disciplines.
There are no perfect solutions to organizational problems
Increase the understanding and skills – work relationships can substantially upgraded
We do not have the luxury of not working with or relate to other people.
Learn human behavior.
Explore how to improve he interpersonal skills
Begin to mange ones relationships with others at work.

4. Understanding human behavior
Definition OB
systematic study and careful application of knowledge about how people – as individuals and as groups – act within organizations.
Strive to identify ways in which people can act more efficiently
A large number of research studies and conceptual developments constantly adds up to its knowledge base.
An applied science
Provides useful set of tools at many levels of analysis from individual, interpersonal relations, intergroup,and whole system

5. Goals of OB
Describe
how people behave under a variety of conditions.
Understand
Why people behave behave as they do.
Probe for underlying explanations
Predict
Predict future employee behavior (tardiness, productive & unproductive etc.)
Provide preventive actions
Control
At least partially and develop some human activity at work.
Managers need to remember that organizational behavior is a tool for human benefit

6. Key forces – complex set of forces affects the nature of organizations

7. Key Forces
People
Make up the internal social system of an organization
Melting pot of diversity – talents, background and perspectives to their jobs
Managers need to be tuned in to these diverse patterns and trends.
Changes in the labor force
Decline in work ethic and rise in emphasis on leisure, self expression, fulfillment and personal growth
Decreased automatic acceptance of authority and increase in the desire for participation, autonomy and control.
Skills become obsolete due to rapid technological advances – retrain or be displaced
Security needs are prime concern and loyalty diminishes because of downsizing and outsourcing
Absence of meaningful salary growth has placed renewed emphasis on money as a motivator
Companies address diversity by becoming compassionate and caring, building pride without de-valuing others, empowering some without exploiting, demonstrating openness, confidence, authentic compassion and vulnerability.

8. Structure Technology Environment
Defines the formal relationship and use of people in organizations.
Effective coordination of work
Create complex problems of cooperation, negotiation and decision making
Technology
Provides he resources with which people work and affects the tasks they perform
Benefit of technology – does more and better work however it restricts people in various ways
OB’s challenge is to maintain the delicate balance between technical and social systems.
Environment
Internal or external
Organizations are part of a larger system and factors influence them like:
Citizens expect organizations to be socially responsible
New products and competition for customers come from around the globe (globalization)
The direct impact of unions diminishes
Dramatic pace of change in society.
The external environment influences the attitudes of people, affects working conditions, and provides competitions for resources and power.

9. Positive Characteristics of OB
Interdisciplinary in nature – integrates behavioral sciences, social sciences and other disciplines
Emerging knowledge, theories, models and conceptual frameworks.
Increasing acceptance of theory and research by practicing managers.
Willingness of managers to explore new ideas
More receptive to new models
Support related research
Hungrily experiment with new ideas

10. Contributing Disciplines to the OB Field
Psychology
Sociology
Social Psychology
Anthropology
Political Science
Psychology is the science that seeks to measure, explain, and sometimes change the behaviour of humans and other animals.
Sociology: Whereas psychologists focus on the individual, sociologists study the social system in which individuals fill their roles; that is, sociology studies people in relation to other human beings.
Social psychology is an area within psychology, but it blends concepts from psychology and sociology. It focuses on the influence of people on one another. One of the major areas receiving considerable investigation from social psychologists has been change--how to implement it and how to reduce barriers to its acceptance. processes.
Anthropology is the study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments, for instance, has helped us understand differences in fundamental values, attitudes, and behaviour between people in different countries and within different organizations.
Political science studies the behaviour of individuals and groups within a political environment. Specific topics of concern include structuring of conflict, allocation of power, and the manipulation of power for individual self-interest.

11. Contributing Disciplines to the OB Field

12. Contributing Disciplines to the OB Field (cont’d)

13. Contributing Disciplines to the OB Field (cont’d)

14. Contributing Disciplines to the OB Field (cont’d)

15. Contributing Disciplines to the OB Field (cont’d)

16. Fundamental Concepts of OB
Nature of people
Individual differences
Nature vs.nurture
Perception
The unique way in which each person sees, organizes and interprets things.
Selective perception cause misinterpretation
A whole person
We employ the whole person not just their brains or skills
Ergonomics is the science of fitting workplace conditions and job demands to the capabilities of the working population
Motivated behavior
A path towards increased need fulfillment is a better approach
Desire for involvement
Hunger for a change to chare what they know and to learn from the experience.
Organizations need to provide opportunities for meaningful involvement – employee empowerment
Value of the person
Worth before the word
meal before the message
they want to be treated differently from other factors of production

17. Nature of organization
Social systems
or social structure in general refer to entities or groups in definite relation to each other, to relatively enduring patterns of behavior and relationship within social systems, or to social institutions and norms becoming embedded into social systems in such a way that they shape the behavior of actors within those social systems. Social systems can be said to be the patterns of behavior of a group of people possessing similar characteristics due to their existence in same society.
Formal and informal social systems
The idea of a social system provides a framework for analyzing organizational behavior issues. It helps make OB problems understandable and manageable
Mutual interest
Symbiotic relationship between organizations and people
Provides a superordinate goal – one that can attained only through the integral effort of individuals and their employers.
Ethics
Treatment of employees in an ethical fashion
Establish code of ethics, publicized statements of wthical values, provide ethics trainings, reward employees for notable ethical behaviors, set up internal procedure to handle misconduct.

19. Models of Organizational Behavior

20. Model of OB

21. Social Systems and Organizational Culture
A social system is a complex set of human relationships interacting in many ways. Within an organization, the social system includes all the people in it and their relationships to each other and to the outside world. The behavior of one member can have an impact, either directly or indirectly, on the behavior of others. Also, the social system does not have boundaries...it exchanges goods, ideas, culture, etc. with the environment around it.

23. Culture is the conventional behavior of an organization that encompasses beliefs, customs, knowledge, and practices. It influences human behavior, even though it seldom enters into their conscious thought. People depend on culture as it gives them stability, security, understanding, and the ability to respond to a given situation. This is why people fear change. They fear the system will become unstable, their security will be lost, they will not understand the new process, and they will not know how to respond to the new situations.

25. HOW AN ORGANIZATION's CULTURE CAN BE KNOWN ?
Organization culture can be a set of key values , assumptions, understandings and norms that is shared by members of an organization. Organization values are fundamental beliefs that an organization considers to be important , that are relatively stable over time, and they have an impact on employees behaviors and attitudes. Organization Norms are shared standards that define what behaviors are acceptable and desirable within organization. Shared assumptions are about how things are done in an organization. Understandings are coping with internal / external problems uniformly.

26. LEVELS OF ORGANIZATION CULTURE LEVEL 1---VISIBLE, that can be seen at the surface level -dress codes -office layout [ open office] -symbols -slogans -ceremonies[ monthly / annual awards/long service/birthdays etc. etc

27. LEVEL 2- INVISIBLE , that can be cannot be seen but only felt
LEVEL 2- INVISIBLE , that can be cannot be seen but only felt. -stories about people performance -symbols [ flag, trademark, logos, etc] -corporate mission statements -recruitment/selection [ methods used] -fairness in treatment -social equality -risk taking in business deals -formality in approach -discipline -autonomy for departments -responsiveness to communication -empowerment of staff.

28. Approaches to OB
Human Resources (Supportive) – Employee growth and development are encouraged and supported.
Contingency – Different managerial behaviors are required by different environments for effectiveness.
Results-oriented – outcomes of organizational behavior programs are assessed in terms of their efficiency.
Systems – all parts of an organization interact in a complex relationship.

29. Limitations of OB
People who lack system understanding and become superficially infatuated with OB may develop Behavioral bias – narrow viewpoint that emphasized satisfying employee experiences while overlooking the broader system of the organization in relation to all its publics.
The law of diminishing return –
he tendency for a continuing application of effort or skill toward a particular project or goal to decline in effectiveness after a certain level of result has been achieved.
Overemphasis on as valid organizational behavior practice may produce negative results
At some point increase of a desirable practice produce declining returns, eventually negative returns

30. Unethical manipulation of people
Knowledge and techniques can be used to manipulate people unethically
People who lack ethical values could use people in unethical ways.
The philosophy of OB is supportive and oriented toward human resources. Seeks to improve human environment and help people grow toward their potential.
Ethical leadership principles such as: social responsibility, open communication, cost-benefit analysis.

31. Continuing Challenges
Seeking Quick Fixes
Are we tempted when pressured to seed rapid solutions?
Varying Environments
Can the ideas that have been developed and tested endure with equal success under new conditions?
Definition Confusion
Considered as relatively new discipline, can OB in clearly define its field of student and application?

32. The organization is above all social. It is people.” Peter Drucker