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Introduction toOrganizational
Behaviour
CHAPTER
1
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Learning Objectives
In this chapter, you will:
Explain what organizational behaviour (OB) is.
Understand why we study OB.
Describe three levels of analysis.
earn about the history of OB.
!dentify disciplines that contribute to OB. Explain current OB challenges in global organizations.
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1.1 What is an Organization?
"n organizationrefers to a group of two or#ore individuals wor$ing together to achieve a
co##on goal."n organization #ay refer to different types of
organizations besides businesses includinggovern#ent agencies% statutory bodies% non&
govern#ental organizations ('O)%associations% clubs and #any types offor#alized groups.
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ission
Figure 1.1 !nterrelationship between #ission% goals% strategy and plan.
oals *trategy +lans
1.1.0 Mission, Goals, Strategy
an !lan
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"n organization exists due to its #ission or
purpose that as$s the ,uestion -hy are we
here/0 1o answer that ,uestion% organizations #ay
develop several goals or ob2ectives to translate
the #ission into so#e specific #easurable
perfor#ance #easures.
1.1.1 Mission
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"ision
-e want to beco#e a successful alaysianauto#obile #anufacturer globally by being custo#er
oriented and producing co#petitively priced andinnovative ,uality products.0(http344www.proton.co#4about5proton4corp5id4vision.php)
Mission +roton is -guided in 6its7 daily efforts by a #ission that
,ualifies what 6it does7 in the #ar$etplace.0(http344www.proton.co#4about5proton4corp5id4personality.php)
1.1.# "ision an Mission o$
!roton
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*trategy3 " broad action plan to interact with theenviron#ent in order to achieve the long&ter#goals of the organization.
*trategic #anage#ent3 " planning process thatinvolves the for#ulation and i#ple#entation ofstrategies to achieve the organization0s long&ter# goals by analysing its internal and externalenviron#ents.
1he for#ulation of strategy would lead to plansor how to achieve the goals.
1.1.% Strategy
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+lans can be developed at various levels8strategic% tactical or operational8within thecontext of strategic #anage#ent.
*trategic plans8plans that are developed bythe top level of #anage#ent.
1actical plans8strategic plans are translatedinto tactical plans at the division or business unitlevel.
Operational plans8further refined atdepart#ental level.
1.1.& !lans
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Organizational 'eha(iouris a field of studythat investigates how individuals% groups and
structures i#pact behaviour within organizationsand how such $nowledge can be used toi#prove the effectiveness of the organizations.
OB involves the syste#atic study of behaviour%
processes and structure found in anorganization.
1.# What is Organizational
)eha(iour?
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*+plain: 1o identify and explain pheno#enon
that occurs within an organization.
lari$y: 1o clarify and forecast behaviours that
are ta$ing place in organizations.
ontrol: 1o control the behaviours that happen
in organizations.
1.% -hree Goals o$ Stuying
Organizational )eha(iour
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OB focuses on three areas% na#ely% individuals%
their interactions with other individuals% and the
organization as the context within which we areobserving these interactions. !n #a$ing these
observations% we #ay have to #a$e certain
assu#ptions.
Contingency Level of analysis
1.& )asic ssu/ptions o$ O)
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9ontingency3 OB is dependent on certain
factors that #ay influence the behaviour that is
being observed.9ontingency perspective whereby
organizational behaviour is dependent upon
certain factors that influence the interaction orbehaviour.
1.&.1 )asic ssu/ptions:
ontingency
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Table 1
Cha!ter "ndividual Cha!ter #rou! Cha!ter Organization
2
2
3
4
4
5
Per!e"tion
#earning
Personality
$%otion
&tress
Attit'des and(ehavio'r
Motivation
)
*
9
+0
+0
+0
++
ro'"s - .ea%s
/o%%'ni!ation
e!ision Ma1ing
Poer
nfl'en!e
Politi!s
#eadershi"
+2
+2
+3
+4
+4
/'lt're
/reativitynnovation
&tr'!t're
Organiationalevelo"%ent
Managing /hange
!ndividual level
1.&.# )asic ssu/ptions:
-hree e(els o$ nalysis
ro'" level Organiation level
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!n studying organizational behaviour in an
organization% #any individual factors can be
ta$en into consideration."#ong the factors that can influence the
behaviour of individuals are their perceptions%
the way they learn% their personalities and
abilities% the way they control their e#otions and
wor$ stress% their attitudes at wor$ and
#otivation.
1.&.#.1 Ini(iual e(el nalysis
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e need to understand behaviour that happendue to the individual0s interaction with otherindividuals at the group level.
Behaviour at the group level involves how onebeco#es a #e#ber of a group% tea#wor$% theway one co##unicates% #a$es decisions andhandles interpersonal conflicts in a group setting.
e also have to have s$ills and a goodunderstanding of power% influence% politics andleadership in order to be effective wor$ing ingroups.
1.&.#.# Group e(el nalysis
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1he third level of analysis in OB can be carried
out by loo$ing at the whole organization.
e can analyse the culture% structure anddesign of the organization.
e also need to understand how the
organization encourages creativity and to#aintain the sustainability via organizational
develop#ent.
1.&.#.% Organization e(el
nalysis
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1hroughout the history of hu#an civilization%
#anage#ent and organizational behaviour have
been around3
Egyptbuilding of the pyramids
South AmericaInca, Machu icchu
!ree" empireAle#ander the !reat
$oman empire%ulius Caesar
China empire!reat &all of China
1. 2istory o$ O)
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Islam empire' Caliphs
(ttoman empire
Coloni)ation by the *ritish, !erman,%apanese, Italian and +rench
!n alaysia% docu#ents such as Sejarah Melayu
(1he alay "nnals) and Hikayat Hang Tuahare
replete with exa#ples related to organizational
behaviour3
1. 2istory o$ O) 3cont.4
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he rise and do-nfall of the Malaccanempire and sultanate.
he development of the Malay "ingdoms as-ell as the strategic alliances -ith "ingdomsof Siam, China and Ma/apahit.
he confrontations and coloni)ations of the
ortuguese, 0utch, Siamese, *ritish and%apanese.
1. 2istory o$ O) 3cont.4
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:ieroglyphics in the to#bs and pyra#ids in
Egypt (;== B9)
?irst !ndustrial @evolution (A=) in
England and Europe
*econd !ndustrial @evolution (A=CAF=) in the
United *tates% Gapan% @ussia% 9hina and !ndia
1..1 2istorical *(iences o$
Manage/ent an O)
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nthropology "nthropology is a discipline thatstudies the relationships betweenindividuals and their environ#ent8organizational culture.
*cono/y !n OB% the econo#ic perspective isborrowed in order to understand howindividuals #a$e decision.
!sychology +sychology is one of the disciplinesthat have a #a2or influence on
organizational behaviour8 organizationalpsychology.
1.5 ontri'uting 6isciplines
to O)
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!olitical Science 1opics such as power% authority andpolitics are contributions fro# the
discipline of political science.Sociology *ociology refers to the study of social
syste# and hu#an interactions insocial situations.
2u/anities e learn better about hu#aninteractions in social situations.
1.5 ontri'uting 6isciplines
to O) 3cont.4
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*ucation 1he educational fields provided aplethora of theories on learning styles asapplied in training and develop#ent even
though so#e #ay have originated fro#psychology.
1.5 ontri'uting 6isciplines
to O) 3cont.4
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lobalization
Huality
1echnology Ethics
Diversity
'ation building
1.7 urrent O) hallenges
in Glo'al Organizations
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"s businesses and industries grow and
beco#e global% alaysian organizations
are doing business in international
settings that re,uires a better
understanding of organizational behaviour
across national boundaries.
1.7.1 Glo'alization
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!n order for alaysian co#panies to export
their products to European Union or the United
*tates% they #ust subscribe and be accreditedto ,uality standards such as !*O F===% !*O
A===% HF===% :""9+% +% *+ and #any
other regulatory re,uire#ents.
1.7.# 8uality
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ocal co#panies #ust further developtechnological capabilities in order to be #ore
co#petitive globally 1hese develop#ents include leaner production%
lower costs% zero defects supply and flexible#anufacturing. ?or exa#ple3
+roton should #ove to #odular production
techni,ues whereby $ey functions can be
delegated to the first&tier suppliers.
1.7.% -echnology
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+roton #ust have e&business infrastructure inplace to enable it to #axi#ize #argins.
+roton0s vendors should engage in costreduction exercises% upgrading of its @IDcapabilities and #aintaining ,uality as per theH* F=== standards.
1.7.% -echnology 3cont.4
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1he present focus on corporate social
responsibility and transparency in both the
private and public sectors necessitates thesensitivity of #anagers to be heightened on
issues relating to ethical behaviour in the
wor$place.
1.7.& *thics
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"s a #ulticultural and #ultiðnic country%
alaysians have been exposed to wor$ing
in environ#ents where people co#e fro#different cultural bac$grounds.
1.7. 6i(ersity
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'ine strategic challenges to beco#e a fully industrializedcountry3
hallenge 1: 1o for# a nation that stands as one.
hallenge #: 1o produce a alaysian co##unity that hasfreedo#% strength and full of self&confidence.
hallenge %: 1o develop a #ature de#ocratic co##unity.
hallenge &: 1o for# a co##unity that has high #orale% ethicsand religious strength.
hallenge : 1o cultivate a co##unity that is #atured andtolerant.
1.7.5 9ation )uiling
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hallenge 5: 1o for# a progressive science co##unity.
hallenge 7: 1o cultivate a co##unity rich in values andloving culture.
hallenge : 1o ensure the for#ation of a co##unity with afair econo#y.
hallenge ;: 1o cultivate a prosperous co##unity.
1hese challenges are very relevant to researchers in the fieldof OB as they invo$e various levels of analyses (individual%group and organizational) as well as the i#pact of society atlarge.
1.7.5 9ation )uiling 3cont.4
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A. hat is organizational behaviour/
;. hat are the goals of studying organizationalbehaviour/
J. hat are the three levels of analysis inorganizational behaviour/
>. ive exa#ples of the contributions of other
disciplines to organizational behaviour.. hat organizational behaviour challenges do
global organizations face/
1.