1. ORGANIZATIONAL BEHAVIOR
S T E P H E N P. R O B B I N S
W W W . P R E N H A L L . C O M / R O B B I N S
T E N T H E D I T I O N

2. AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO:
Define organizational behavior (OB).
Describe what managers do.
List the major challenges and opportunities for managers to use OB concepts.
Identify the contributions made by major behavioral science disciplines to OB.
L E A R N I N G O B J E C T I V E S

3. AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO:
Describe why managers require a knowledge of OB.
Explain the need for a contingency approach to the study of OB.
L E A R N I N G O B J E C T I V E S (cont’d)

4. What Managers Do Managerial Activities Make decisions
Allocate resources
Direct activities of others to attain goals

5. Where Managers Work

6. The Management Process
Resources
Human
Financial
Physical
Informational
Goal
Achievements
Management Functions
Planning
Organizing
Directing
Controlling
Source: Adapted from G. Terry, Principles of Management. Homewood, IL: Irwin, 4.

7. Management Functions Management Functions Planning Organizing Leading
Controlling
Management Functions

8. Management Functions (cont’d)

9. Management Functions (cont’d)

10. Management Functions (cont’d)

11. Management Functions (cont’d)

12. New Managerial Functions
Total Quality
Management
Continuous
Improvement
According to the current view of managerial functions, the central role for managers is to provide leadership and direction. Managers and employees now share the responsibility for the other traditional managerial functions.
In some businesses, teams handle the controlling and monitoring functions. For example, many organizations use Total Quality Management--a concept popularized by W. Edwards Deming to promote customer satisfaction through continuous improvement of business processes. Continuous improvement requires all employees to improve the quality of products or services on an on-going basis. Managing quality becomes everyone’s job. 11

13. Mintzberg’s Managerial Roles
Interpersonal
Informational
Decisional

14. Mintzberg’s Managerial Roles

15. Mintzberg’s Managerial Roles (cont’d)

16. Mintzberg’s Managerial Roles (cont’d)

17. Management Skills

18. New Managerial Skills Managing Change Managing One’s Career Managing
Managers must manage change by recognizing and adapting to new trends. Therefore, managers must analyze business, social, cultural, and political trends; understand the implications of these trends; and adapt to them.
The traditional vertical career ladder is becoming increasingly rare. Moreover, few organizations promise long, stable employment. As a result, managers must manage their own careers through creative planning and by actively seeking training, education, and new learning opportunities.
Establishing and managing strong relationships with people within and without the organization will be important to future managers. Therefore, they must master the skill of managing diverse relationships--that is, the ability to guide and control personal and work relationships effectively.
Managers must be able to delegate tasks and empower employees and team members. While delegation refers to assigning various tasks to employees, empowerment goes one step further. Managers give employees the authority and responsibility to complete tasks; thus, employees are empowered to be in charge of jobs.
Managing
Diversity
Delegation and
Empowerment 14

19. Effective Versus Successful Managerial Activities (Luthans)
Traditional management
Decision making, planning, and controlling
Communications
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

21. Organizational Behavior
How
People
Behave in
Organizations
How
Organizations
Use Human
Resources to
Achieve Goals
Organizations are groups of two or more people who cooperate and coordinate their activities in a systematic manner to reach their goals.
Organizational behavior (OB) is the study of how people behave in organizations as individuals or as teams and how organizations structure human resources to achieve their goals.
The purpose of OB is to understand people in organizations, to provide managers and practitioners with effective management tools, and to help organizations achieve their goals. 4

22. What is Organizational Behavior?
Organizational Behavior (OB) is the study:
of human behavior in organizational settings;
of the interface between human behavior and the organization;
of the organization itself.
All these three areas are necessary for a comprehensive understanding
or organizational behavior.
We can study individual behavior without explicitly considering the
organization. But the organization influences and is influenced
by the individual, we cannot fully understand the individual’s behavior
without learning something about the organization.

23. What is Organizational Behavior? Contd.,

24. Organizational Behavior
The Three Levels of
Organizational Behavior
Organizational
Processes
The
Individual
Group
The first level of Organizational Behavior (micro OB) studies the individual. It is the smallest level of organizational analysis and includes topics such as perception, personality, motivation, and learning.
The second level of organizational behavior is the small group that is made up of individual employees (two people or more) within an organization. It includes issues of group size and composition, cohesion, trust, conflict management, team building, small-group decision making, and leadership.
The third level of OB analysis (macro OB) involves larger groups, such as departments, and organizational processes. Topics include the design and structure of organizations, organizational culture and strategy, organizational power and politics, change, and organizational effectiveness.
Most managers must understand their organizations at all three levels of analysis to meet the daily challenges they face. 5

25. Contributing Disciplines to the OB Field

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

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

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

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

30. FUNDAMENTAL CONCEPTS
Key
forces
affecting
organizational
behavior

31. Challenges and Opportunity for OB
Responding to Globalization
Managing Workforce Diversity
Improving Quality and Productivity
Responding to the Labor Shortage
Improving Customer Service

32. Challenges and Opportunity for OB (cont’d)
Improving People Skills
Empowering People
Coping with “Temporariness”
Stimulation Innovation and Change
Helping Employees Balance Work/Life Conflicts
Improving Ethical Behavior

33. The Setting For Organizational Behavior
Management practices and organization design are major contributors to employee attitudes, motivation, and behaviors.
Management
Organization
Employee Attitudes,
Motivation & Behavior

34. The Origin of Organizations
Societal Needs
give rise to .
Organizations

35. The Origin of Different Types of Organizations
Societal Needs
give rise to .
Organizational
Differentiation

36. Organizational Chart
A schematic drawing that depicts hierarchical relationships (chain of command) among all positions in the organization.
Nonmanager
Nonmanagers
Managers
Key
Manager
Director
Vice President
President

37. Organization Defined “Machine” Approach Social System Approach
A technical or mechanical system that transforms inputs into the goods and services required to serve a societal need.
Social System Approach
A system characterized by relatively enduring interaction patterns that link people and people as they pursue organizational goals.

38. The Machine View of Organization
Imported Resources
The Work Organization
Exported Goods and Services
Input System
Throughput System
Output System

39. Strategic Choices Organizational Goals Management (“reason for being”)
External
Environment
Strategic Choices
Management
Practices
Organization
Design
Employee Attitudes,
Motivation & Behavior
Philosophy
Organizational Goals
(“reason for being”)

40. Today’s Organizations
Challenges for
Today’s Organizations
Globalization
and Culture
High Quality
and Low Cost
Though the world is becoming more interconnected, culture, politics, and religion can impede day-to-day business interactions. To manage the process of globalization more effectively, countries are signing agreements to reduce tariffs, subsidies, quotas, and other obstacles to business cooperation.
Managers face two cultural issues in the workplace. As companies step outside their national borders, managers must change their managerial practices to fit other cultures. In addition, they must also deal with cultural diversity--differences due to ethnicity, religion, age, or sexual orientation.
Globalization and technology are changing the marketplace. Managing the rapid pace of change is another challenge that managers and organizations face. If well managed, change can promote growth; if poorly managed, change can devastate any organization.
Businesses must respond to the needs of customers in order to succeed. The challenge of delivering high quality and low cost has forced organizations to seek ways to become more efficient.
Businesses must remain responsive to external and internal stakeholders--the individuals or groups that have some interest or stake in the organization. But what may benefit one group of stakeholders may hurt another group. To balance the needs of multiple stakeholders, managers must analyze business decisions in light of legal concerns, ethical considerations, and social responsibilities.
Multiple
Stakeholders
Rapid Pace
of Change 17

41. The Response of Organizations
Globalization and
Cultural Issues
Rapid Pace
of Change
Demand for Quality
and Low Cost
Multiple
Stakeholders
Going Global and
Promoting Diversity
Restructuring
Entrepreneurship and
Intrapreneurship
High-Technology
Organizations are going global by expanding markets and operations all over the world. In addition, firms are promoting diversity and training managers to handle cultural diversity.
To face the global, quality, and efficiency challenges, many organizations are restructuring--that is, changing the way human resources are organized. The goals of restructuring are increased flexibility, quicker response to external changes, and more fluid structures.
Entrepreneurs provide considerable competition for large businesses. Free of bureaucratic red tape and more connected to their customers, they can “turn on a dime” when a new opportunity or challenge arises. The flexibility, creativity, and responsiveness of entrepreneurs are benefits that many large businesses try to harness by encouraging intrapreneurs--employees in large organizations that have the drive, creativity, and flexibility of entrepreneurs.
Through the use of high technology, business organizations can become more flexible and efficient. Computer networks, state-of-the-art hardware and software, information technology, telecommunication tools, automation, and robotics allow organizations to do more in less time. 18

42. The Response of Managers
Globalization and
Cultural Issues
Rapid Pace
of Change
Demand for Quality
and Low Cost
Multiple
Stakeholders
Work With Others
and Manage Diversity
Identify and Harness
Opportunities
Be Flexible, Learn Fast,
and Think Creatively
Adopt a Broad,
Big-Picture View
To respond to globalization and cultural issues, managers must learn to work with people from other countries effectively and manage diverse cultures inside and outside the organization.
To keep up with the rapid pace of change, managers must recognize, adapt to, and reap the inherent benefits of change.
To respond to customer demands for low-cost, high-quality products and services, managers must adjust to new situations quickly, respond to organizational and customer demands efficiently, and think broadly and creatively.
Managers must work with a diverse workforce, be socially responsible and aware of ethical issues, and consider the effects of business activities on multiple stakeholders. 19

43. Basic OB Model, Stage I

44. The Dependent Variablesy x

45. The Dependent Variables (cont’d)

46. The Dependent Variables (cont’d)

47. The Dependent Variables (cont’d)

48. The Dependent Variables (cont’d)

49. The Independent Variables
Individual-Level Variables
Organization System-Level Variables
Group-Level Variables