Organizational Organizational BehaviorBehavior

• KHALID HUSSAIN CHOHAN, KHALID HUSSAIN CHOHAN, Tamgha-i-Tamgha-i-Imtiaz (M)Imtiaz (M)

– MBA (“HR” and “Finance & Investment”)MBA (“HR” and “Finance & Investment”)NUST Institute of Management SciencesNUST Institute of Management Sciences

– M.A (Economics)M.A (Economics)Peshawar UniversityPeshawar University

– B.Sc. (Hons)- War StudiesB.Sc. (Hons)- War StudiesBalochistan UniversityBalochistan University

Contact:0321-5178693Contact:0321-5178693E-mail: chohankh@gmail.comE-mail: chohankh@gmail.com

Facilitator

Introduction of StudentsIntroduction of Students

OrganizationOrganization• Organizations are social entities,Organizations are social entities,• That are goal directed, That are goal directed, • Are designed as deliberately structured and Are designed as deliberately structured and

coordinated activity systems, coordinated activity systems, • And are linked to external environment. And are linked to external environment.

Importance of OrganizationsImportance of Organizations• Bring together resources to achieve desired goals and Bring together resources to achieve desired goals and

outcomes.outcomes.• Produce goods and services efficiently.Produce goods and services efficiently.• Facilitate innovation. Facilitate innovation. • Use modern manufacturing and computer technology. Use modern manufacturing and computer technology. • Adapt to and influence changing environment.Adapt to and influence changing environment.• Create value for owners, customers and employees.Create value for owners, customers and employees.• Accommodate ongoing challenges of diversity, ethics, Accommodate ongoing challenges of diversity, ethics,

career patterns, and the motivation and coordination of career patterns, and the motivation and coordination of employees.employees.

Organizational BehaviorOrganizational Behavior

Organizational Behavior (OB) is the Organizational Behavior (OB) is the study and application of knowledge about study and application of knowledge about how people, individuals, and groups act how people, individuals, and groups act in organizations. It does this by taking a in organizations. It does this by taking a system approachsystem approach . That is, it interprets . That is, it interprets people-organization relationships in people-organization relationships in terms of the whole person, whole group, terms of the whole person, whole group, whole organization, and whole social whole organization, and whole social system. Its purpose is to build better system. Its purpose is to build better relationships by achieving human relationships by achieving human objectives, organizational objectives, and objectives, organizational objectives, and social objectives.social objectives.

Organizational BehaviorOrganizational Behavior• Studies management activities that promote employee Studies management activities that promote employee

effectiveness effectiveness – investigates the complex nature of individual, group, and investigates the complex nature of individual, group, and

organizational processesorganizational processes– Theory XTheory X

• managers assume that workers are lazy, managers assume that workers are lazy, irresponsible, and require constant supervisionirresponsible, and require constant supervision

– Theory YTheory Y • managers assume employees want to work and managers assume employees want to work and

control themselvescontrol themselves• PersonalitiesPersonalities

– Douglas McGregorDouglas McGregor

Organizational Behavior (cont.)Organizational Behavior (cont.)

Promotes employee effectiveness through understanding of Promotes employee effectiveness through understanding of individual, group, and organizational processesindividual, group, and organizational processes

Stresses relationships among employees, managers, and work Stresses relationships among employees, managers, and work performedperformed

Assumes employees want to work and can control themselvesAssumes employees want to work and can control themselves

Increased participation, greater autonomy, individual challenge Increased participation, greater autonomy, individual challenge and initiative, and enriched jobs may increase participationand initiative, and enriched jobs may increase participation

Recognized the importance of developing human resourcesRecognized the importance of developing human resources

Key concepts

Contributions

Elements of Organizational Elements of Organizational BehaviorBehavior

• The organization's base rests on management's The organization's base rests on management's philosophy, values, vision and goals. philosophy, values, vision and goals.

• This in turn drives the organizational culture which is This in turn drives the organizational culture which is composed of the formal organization, informal organization, composed of the formal organization, informal organization, and the social environment. and the social environment.

• The culture determines the type of leadership, The culture determines the type of leadership, communication, and group dynamics within the communication, and group dynamics within the organization. organization.

• The workers perceive this as the quality of work life which The workers perceive this as the quality of work life which directs their degree of motivation. directs their degree of motivation.

• The final outcome are performance, individual satisfaction, The final outcome are performance, individual satisfaction, and personal growth and development. and personal growth and development.

• All these elements combine to build the model or All these elements combine to build the model or framework that the organization operates from. framework that the organization operates from.

What is Theory?What is Theory?

• Theory is: “a plan or scheme existing in Theory is: “a plan or scheme existing in the mind only, but based on principles the mind only, but based on principles verifiable by experiment or observation”verifiable by experiment or observation”

Definition of Organization Definition of Organization TheoryTheory• Organization theory: is the set of schemes Organization theory: is the set of schemes

(body of knowledge) stemming from a (body of knowledge) stemming from a definable field of study which can be definable field of study which can be termed termed organizations scienceorganizations science (Kast&Rosenzweig1970)(Kast&Rosenzweig1970)..

• The study of organizations: is an applied The study of organizations: is an applied science because the resulting knowledge science because the resulting knowledge is relevant to problem solving or decision is relevant to problem solving or decision making in ongoing enterprises or making in ongoing enterprises or institutions institutions (Kast&Rosenzweig1970)(Kast&Rosenzweig1970)..

Definition of Organization Definition of Organization Theory Cont..Theory Cont..• ““It is the application of scientific knowledge It is the application of scientific knowledge

in engineering and other forms of in engineering and other forms of technology that has brought such technology that has brought such spectacular changes in the material spectacular changes in the material context of our lives over the past century” context of our lives over the past century” (Kast&Rosenzweig1970)(Kast&Rosenzweig1970)..

OT OB

HROD

MACRO MICRO

APPLIED

THEORETICAL

Enter Organizational BehaviorEnter 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.

Complementing Intuition with Systematic Study

Complementing Intuition with Systematic Study

Systematic study

Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence.

Provides a means to predict behaviors.

Intuition

“Gut” feelings about “why I do what I do” and “what makes others tick”.

Contributing Disciplines to the OB Field

E X H I B I T 1–3 (cont’d)E X H I B I T 1–3 (cont’d)

PsychologyThe science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

Contributing Disciplines to the OB Field (cont’d)

E X H I B I T 1–3 (cont’d)E X H I B I T 1–3 (cont’d)

SociologyThe study of people in relation to their fellow human beings.

Contributing Disciplines to the OB Field (cont’d)

E X H I B I T 1–3 (cont’d)E X H I B I T 1–3 (cont’d)

Social PsychologyAn area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

Contributing Disciplines to the OB Field (cont’d)

E X H I B I T 1–3 (cont’d)E X H I B I T 1–3 (cont’d)

AnthropologyThe study of societies to learn about human beings and their activities.

There Are Few Absolutes in OB

x y

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.

Country 1

x yCountry 2

May be related to

May NOT be related to

In

In

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 people during the war on terror.

• Managing Workforce Diversity– Embracing diversity– Changing U.S. demographics– Implications for managers

• Recognizing and responding to differences

DomesticDomesticPartnersPartners

DomesticDomesticPartnersPartners

Major Workforce Diversity Categories

RaceRaceRaceRaceNon-ChristianNon-ChristianNon-ChristianNon-Christian

NationalNationalOriginOrigin

NationalNationalOriginOrigin

AgeAgeAgeAge

DisabilityDisabilityDisabilityDisability

E X H I B I T 1–4E X H I B I T 1–4

GenderGenderGenderGender

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

What Is Quality Management?

1. Intense focus on the customer.

2.Concern for continuous improvement.

3. Improvement in the quality of everything the organization does.

4.Accurate measurement.

5.Empowerment of employees. E X H I B I T 1–6

E X H I B I T 1–6

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 Balance Work/Life

Conflicts• Improving Ethical Behavior• Managing People during the War on

Terrorism

A Downside to Empowerment?

Basic OB Model, Stage I

E X H I B I T 1-6E X H I B I T 1-6

Model

An abstraction of reality.A simplified representation of some real-world phenomenon.

The Dependent Variables

x

y

Dependent variable

A response that is affected by an independent variable (what organizational behavior researchers try to understand).

The Dependent Variables (cont’d)

ProductivityA performance measure that includes effectiveness and efficiency.

EffectivenessAchievement of goals.

EfficiencyMeeting goals at a low cost.

The Dependent Variables (cont’d)

Absenteeism

The failure to report to work.

Turnover

The voluntary and involuntary permanent withdrawal from an organization.

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.

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.

The Dependent Variables (cont’d)Job satisfaction

A general attitude (not a behavior) toward one’s job; a positive feeling of one's job resulting from an evaluation of its characteristics.

The Independent Variables

IndependentIndependentVariables Can BeVariables Can Be

IndependentIndependentVariables Can BeVariables Can Be

Individual-Level Individual-Level VariablesVariables

Individual-Level Individual-Level VariablesVariables

OrganizationOrganizationSystem-LevelSystem-Level

VariablesVariables

OrganizationOrganizationSystem-LevelSystem-Level

VariablesVariables

Group-LevelGroup-LevelVariablesVariables

Group-LevelGroup-LevelVariablesVariables

Independent variable

The presumed cause of some change in the dependent variable; major determinants of a dependent variable.

Basic OB Model, Stage II

E X H I B I T 1-7E X H I B I T 1-7

Theory X/YTheory X/Y

• Douglas MacGregor, 1960Douglas MacGregor, 1960• Interaction between supervisors and Interaction between supervisors and

subordinatessubordinates• Organization’s management approach is Organization’s management approach is

determined by supervisors’ attitudes and determined by supervisors’ attitudes and beliefs about subordinatesbeliefs about subordinates

• Beginning of human relations movementBeginning of human relations movement

Theory XTheory X

• Role of ManagementRole of Management– Management responsible Management responsible

for organizing elements of for organizing elements of productive enterpriseproductive enterprise

– People need to be People need to be controlled and directedcontrolled and directed

– People would be passive People would be passive otherwiseotherwise

• Human NatureHuman Nature– man works as little as man works as little as

possiblepossible– lacks ambition, dislikes lacks ambition, dislikes

responsibility, prefers to be responsibility, prefers to be ledled

– inherently self-centeredinherently self-centered– naturally resistant to naturally resistant to

changechange– gullible, not very brightgullible, not very bright

Theory YTheory Y

• Role of ManagementRole of Management– Management responsible Management responsible

for organizing elements of for organizing elements of productive enterpriseproductive enterprise

– Task of management is to Task of management is to arrange organizational arrange organizational conditions so that people conditions so that people can achieve their own can achieve their own goals best by directing their goals best by directing their own efforts toward own efforts toward organizational objectivesorganizational objectives

• Human NatureHuman Nature– People are not naturally People are not naturally

passive, they have become passive, they have become so as a result of so as a result of experience in organizationsexperience in organizations

– Motivation and capacity for Motivation and capacity for assuming responsibility is assuming responsibility is inherent in peopleinherent in people

Theory X and Theory YTheory X and Theory Y

• Theory XTheory X– childlikechildlike– passivepassive– lazylazy– resists workresists work– want to be ledwant to be led– bear minimumbear minimum

• Theory YTheory Y– adultsadults– desire to achievedesire to achieve– committed to workcommitted to work– responsibleresponsible– lead, control their lead, control their

workwork– want to do a good want to do a good

jobjob

Models of Organizational Models of Organizational BehaviorBehavior

• Autocratic Autocratic • Custodial Custodial • Supportive Supportive • Collegial Collegial

Autocratic ModelAutocratic Model• The basis of this model The basis of this model

is power with a is power with a managerial orientation managerial orientation of authority.of authority.

• The employees in turn The employees in turn are oriented towards are oriented towards obedience and obedience and dependence on the dependence on the boss.boss.

• The employee need The employee need that is met is that is met is sustenance. sustenance.

• The performance result The performance result is minimal.is minimal.

Custodial ModelCustodial Model

• The basis of this model The basis of this model is economic resources is economic resources with a managerial with a managerial orientation of money. orientation of money.

• The employees in turn The employees in turn are oriented towards are oriented towards security and benefits security and benefits and dependence on the and dependence on the organization. organization.

• The employee need The employee need that is met is security. that is met is security.

• The performance result The performance result is passive cooperation. is passive cooperation.

Supportive ModelSupportive Model

• The basis of this model is The basis of this model is leadership with a leadership with a managerial orientation of managerial orientation of support. support.

• The employees in turn are The employees in turn are oriented towards job oriented towards job performance and performance and participation. participation.

• The employee need that The employee need that is met is status and is met is status and recognition. recognition.

• The performance result is The performance result is awakened drives. awakened drives.

Collegial ModelCollegial Model

• The basis of this model is The basis of this model is partnership with a partnership with a managerial orientation of managerial orientation of teamwork. teamwork.

• The employees in turn are The employees in turn are oriented towards oriented towards responsible behavior and responsible behavior and self-discipline. self-discipline.

• The employee need that is The employee need that is met is self-actualization. met is self-actualization.

• The performance result is The performance result is moderate enthusiasm. moderate enthusiasm.