1. Principles of Management & Organisational Behaviour
College of Information Technology
CISB233
Principles of Management & Organisational Behaviour
Chapter 1 What is Organizational Behavior?

2. Chapter1: What is management & Organizational Behavior?
Learning objectives:
DESCRIBE what managers do
DEFINE organizational behavior (OB)
EXPLAIN the value of the systematic study of OB
IDENTIFY the contributions made by major behavioral science disciplines to OB
LIST the major challenges and opportunities for managers to use OB concepts
CHARACTERIZE the nature of the field of OB today
Topic One

3. Definition of Management
According to Lawrence A Appley - "Management is the development of people and notthe direction of things".
According to Joseph Massie - "Management is defined as the process by which a co-operative group directs action toward
However, the definition given by James A.F. Stoner covers all the important facets of management.
According to him: “Management is the process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals”.

4. The definition suggests:
Management is a continuous process;
Several interrelated activities have to be performed by managers irrespective of their levels to achieve the desired goals;
Managers use the resources of the organization, both physical as well as human, to achieve the goals;
Management aims at achieving the organisation’s goals by ensuring effective use of resources in the best interests of the society
the emphasis is on achieving the objectives by using material, machinery, money and the services of men.

5. Management Key Concepts
Organizations: People working together and coordinating their actions to achieve specific goals.
Goal: A desired future condition that the organization seeks to achieve.
Management: The process of using organizational resources to achieve the organization’s goals by...
Planning, Organizing, Leading, and Controlling

6. Additional Key Concepts
Resources are organizational assets and include:
People,
Machinery,
Raw materials,
Information, skills,
Financial capital.
Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.

7. Achieving High Performance
Organizations must provide a good or service desired by its customers.
David Johnson of Campbell Soup manages his firm to provide quality food products.
Physicians, nurses and health care administrators seek to provide healing from sickness.
McDonald’s restaurants provide burgers, fries and shakes that people want to buy.

8. Organizational Performance
Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals.
Efficiency: A measure of how well resources are used to achieve a goal.
Usually, managers must try to minimize the input of resources to attain the same goal.
Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.
Organizations are more effective when managers choose the correct goals and then achieve them.

9. What Managers Do MANAGERS
Individuals who achieve goals through other people.
Key activities:
make decisions
allocate resources
direct activities of others
Working in:
ORGANISATIONS A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

10. Four Functions of Management
Planning
Decide on organizational goals
and allocate and use
resources to
achieve those goals
Organizing
Establish the rules and
reporting relationships that
allow people to
achieve organizational goals
Controlling
Evaluate how well the
organization is achieving goals
and take action to
maintain, improve, and correct
performance
Leading
Encourage and coordinate
individuals and groups
so that they work
toward organizational goals
OB and Planning: The study of OB reveals how decisions are made in organizations and how politics and conflict affect the planning process. It shows how group decision making and biases can affect planning.
OB and Organizing: OB offers guidelines on how to organize employees to make the best use of their skills and capabilities.
OB and Leading: The study of different leadership methods and of how to match leadership style to the characteristics of the organization and all its components is a major concern of OB.
OB and Controlling: The theories and concepts of organizational behavior allow managers to understand and accurately diagnose work situations in order to pinpoint where corrective action may be needed. 7

11. Levels of Management TOP MANAGEMENT
Consists of owners/shareholders, Board of Directors, its Chairman, Managing Director, GM.
MIDDLE MANAGEMENT
Consists of heads of functional departments, purchase manager, production manager, marketing manager
LOWER LEVEL or operative management
Superintendents, Foremen, Supervisors

12. Top mangaement
a)To establish the objectives or goals of the enterprise.
b) To make policies and frame plans to attain the objectives laid.
(c) To set up an organizational frame work to conduct the operations as per plans.
(d) To assemble the resources of money, men, materials, machines and methods to put the plans into action.
(e) To exercise effective control of the operations.
(f) To provide overall leadership to the enterprise.

13. Middle Management
To interpret the policies chalked out by top management.
To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies.
To recruit and select suitable operative and supervisory staff.
To assign activities, duties and responsibilities for timely implementation of the plans.
To compile all the instructions and issue them to supervisor under their control.
To motivate personnel to attain higher productivity and to reward them properly.
To cooperate with the other departments for ensuring a smooth functioning of the entire organization.
To collect reports and information on performance in their departments.
To report to top management (j) To make suitable recommendations to the top management for the better execution of plans and policies.

14. Lower Management
It consists of foreman, supervisors, sales officers, accounts officers and so on.
They are in direct touch with the rank and file or workers. Their authority and responsibility is limited.
They pass on the instructions of the middle management to workers.
They interpret and divide the plans of the management into short-range operating plans.
They are also involved in the process of decisions-making.
They have to get the work done through the workers.
They allot various jobs to the workers, evaluate their performance and report to the middle level management.
They are more concerned with direction and control functions of management.
They devote more time in the supervision of the workers.

15. Mintzberg’s Managerial Roles

16. Mintzberg’s Managerial Roles (cont)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

17. Management Skills
Technical skills The ability to apply specialized knowledge or expertise.
Human relations skills The ability to work with, understand, and motivate other people, both individually and in groups.
Conceptual Skills The mental ability to analyze and diagnose complex situations.

18. Skill-mix of different management levels
Top Management
Conceptual Skills
Middle Management
Human Relations Skills
Low Management
Technical Skills

19. Effective Versus Successful Managerial Activities (Luthans)
Traditional management
Decision making, planning, and controlling
Communication
Exchanging routine information and processing paperwork
Human resource management
Motivating, disciplining, managing conflict, staffing, and training
Networking
Socializing, politicking, and interacting with others

20. Allocation of Activities by Time
Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).

21. Enter Organizational Behavior
Organizational behavior (OB)
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 toward improving an organization’s effectiveness.

22. Replacing Intuition with Systematic Study
A feeling not necessarily supported by research.
Systematic study
Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence.
Provides a means to predict behaviors.

23. Importance of OB research
Understand
organisational
events
Organisational
behaviour
research
Influence
organisational
events
Predict
organisational
events

24. Toward an OB Discipline

25. Contributing Disciplines to the OB Field
Psychology (Chapters 1 – 8)
The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

26. Contributing Disciplines to the OB Field (cont’d)
Sociology (Chapters 9 – 11)
The study of people in relation to their fellow human beings.

27. Contributing Disciplines to the OB Field (cont’d)
Social Psychology (Chapters 9 – 11)
An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

28. Contributing Disciplines to the OB Field (cont’d)
Anthropology (Chapters12, 13 & 17) : The study of societies to learn about human beings and their activities.
E X H I B I T 1–3 (cont’d)

29. Contributing Disciplines to the OB Field (cont’d)
Political Science (Chapters 14 & 15)
The study of the behavior of individuals and groups within a political environment.
E X H I B I T 1–3 (cont’d)

30. BUT There Are Few Absolutes in OB
Contingency variables: “It Depends!”
Situational factors that make the main relationship between two variables change—e.g., the relationship may hold for one condition but not another x y
May be related to In
Country 1 x y In
Country 2
May NOT be related to

31. Challenges and Opportunities for OB
Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Coping with anti-capitalism backlash
Overseeing movement of jobs to countries with low-cost labor
Managing Workforce Diversity
Embracing diversity
Changing world demographics
Implications for managers
Recognizing and responding to differences

32. Major Workforce Diversity Categories
Figure 1.6 illustrates the characteristics used to define the bases of diversity.

33. Challenges and Opportunities for OB (cont’d)
Improving Quality and Productivity
Quality management (QM)
Process reengineering
Responding to the Labor Shortage
Changing work force demographics
Fewer skilled laborers
Early retirements and older workers
Improving Customer Service
Increased expectation of service quality
Customer-responsive cultures

34. Challenges and Opportunity for OB (cont’d)
Improving People Skills
Empowering People
Stimulating Innovation and Change
Coping with “Temporariness”
Working in Networked Organizations
Helping Employees Achieve Work/Life Balance
Improving Ethical Behavior

35. Basic OB Model
Model
An abstraction of reality. A simplified representation of some real-world phenomenon.
Often looks at the how a response (dependent variable) is affected by an independent variable
Three Levels of Analysis:

36. The Dependent Variables
Productivity
A performance measure that includes effectiveness and efficiency.
Effectiveness Achievement of goals.
Efficiency The ratio of effective output to the input required to achieve it.
Absenteeism
The failure to report to work.
Turnover
The voluntary and involuntary permanent withdrawal from an organization.

37. The Dependent Variables (cont’d)
Organizational citizenship behavior (OCB)
Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.
Job satisfaction
A general attitude toward one’s job, the difference between the amount of reward workers receive and the amount they believe they should receive.

38. The Dependent Variables (cont’d)
Deviant Workplace Behavior
Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members

39. The Independent Variables
The presumed cause of some change in the dependent variable.
Independent Variables
Individual-Level Variables
Organization System-Level Variables
Group-Level Variables

40. Basic OB Model, Stage II
E X H I B I T 1–8

41. THANK YOU