INTRODUCTION

Organizational behavior 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 StrategyOrganizations 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 systemOpen systems transform human and material

resource inputs into finished goods and servicesStakeholders 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 RelationInteractions between employers and employees and their attitudes toward one another.

Psychological ContractSet 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 SatisfactionDegree of enjoyment that people derive from performing their jobs.

MoraleOverall attitude that employees have toward their workplace.

Motivation- The set of forces that cause people to behave in

certain waysClassical theory Theory holding that workers are motivated solely

by moneyBehavior Theory: The Hawthorn Studies Tendency for productivity to increase when

workers believe they are receiving special attention from management

Theory XTheory of motivation holding that people are naturally irresponsible and cooperative.

Theory YTheory of motivation holding that people are naturally responsible, growth oriented, self-motivated, and interested in being productive

Theory X Theory 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 modelTheory 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 TheoryTheory of motivation holding that job satisfaction depends on two types of factors, hygiene and motivation

Expectancy theoryTheory 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 TheoryTheory 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 EmpowermentMethod 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 jobb) 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 Centuryi.Changing Patterns of Motivationii.Changing Patterns of Leadership

Phase One

Type of Group Group Formation

Phase Two

Group Development stagesMutual AcceptanceCommunication and Decision MakingMotivation and ProductivityControl and Organization

Performance FactorsCompositionSizeNormsCohesiveness

Phase Three: Mature groupGroup CharacteristicsProductiveAdaptiveSelf-Correcting

Member CharacteristicsInterdependentCoordinatedCooperativeCompetentMotivatedCommunicative

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 Permanent Relatively 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 GroupAre formed by the organization to do its work and usually are included in the organization chart

- Command/Functional GroupIs a relatively permanent, formal group with functional reporting relationships.

- Task GroupIs 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, 2nd 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 measuredi. Norms help the group surviveii. Norms simplify and make more predictable the

behaviors expected of group membersiii. Norms help the group avoid embarrassing

situationsiv. Norms express the central values of the group

and identify the group to others

Group CohesivenessFactors 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