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Introduction to
Organizational Behavior
What Is Organizational Behavior?
BY: Muhammad Waqas Ashraf
waqasashraf348@gmail.com
03038874422
© 2009 Prentice-Hall Inc. All rights reserved. 1-0

Chapter Learning Objectives
• After studying this chapter you should be able
to:
– Demonstrate the importance of interpersonal
skills in the workplace.
– Describe the manager’s functions, roles, and skills.
– Define organizational behavior (OB).
– Identify the challenges and opportunities
managers have in applying OB concepts.
– Compare the three levels of analysis in this book’s
OB model.

The Importance of Interpersonal Skills
• Understanding OB helps determine manager
effectiveness
– Technical and quantitative skills are important
– But leadership and communication skills are
CRITICAL
• Organizational benefits of skilled managers
– Lower turnover of quality employees
– Better financial performance

What Managers Do
• They get things done through other people.
• Management Activities:
– Make decisions
– Allocate resources
– Direct activities of others to attain goals
• Work in an organization
– 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.

Five Management Functions
• PLAN
– A process that includes defining goals,
establishing strategy, and developing plans to
coordinate activities.
• ORGANIZE
– Determining what tasks are to be done, who is to
do them, how the tasks are to be grouped, who
reports to whom, and where decisions are to be
made.

Five Management Functions
• LEAD
– A function that includes motivating employees,
directing others, selecting the most effective
communication channels, and resolving conflicts.
• CONTROL
– Monitoring performance, comparing actual
performance with previously set goals, and
correcting any deviation.
– STAFFING:
To coordinate with Human Resource of the
organization.

Organizational Behavior
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.

Intuition and Systematic Study
• Intuition
• A gut feeling not necessarily supported by research.
Intuition is the ability to acquire knowledge without
inference(reading) and/or the use of reason.
• Systematic Study
Looking at relationships, attempting to attribute causes
and effects, and drawing conclusions based on
scientific evidence.
• The two are complementary means of predicting
behavior.

An Outgrowth of Systematic Study…
Evidence-Based Management (EBM)
– Basing managerial decisions on the best
available scientific evidence.
– Must think like scientists:
• Pose a managerial question
• Search for best available evidence

Managers Should Use All Three
Approaches
The trick is to know when to go with your gut.
– Jack Welsh
• Intuition is often based on inaccurate information
• Systematic study can be time-consuming
Use evidence as much as possible to inform your
intuition and experience. That is the promise of
OB.

Four Contributing Disciplines
• Psychology
The science that seeks to measure, explain, and
sometimes change the behavior of humans and
other animals.
– Unit of Analysis:
• Individual
– Contributions to OB:
• Learning, motivation, personality, emotions, perception
• Training, leadership effectiveness, job satisfaction
• Individual decision making, performance appraisal, attitude
measurement
• Employee selection, work design, and work stress

• Social Psychology
An area within psychology that blends concepts
from psychology and sociology and that focuses
on the influence of people on one another.
• Group
• Behavioral change
• Attitude change
• Communication
• Group decision making

– Organizational System
– Work teams
– Communication
– Power
– Conflict
– Intergroup behavior
– Group
– Formal organization theory
– Organizational technology
– Organizational change
– Organizational culture
• Sociology
The study of people in relation to their fellow
human beings.

-- Organizational System
– Organizational culture
– Organizational environment
-- Group
– Cross-cultural analysis
• Anthropology
The study of societies to learn about human
beings and their activities.

Challenges and Opportunities for OB
• Responding to Globalization
• Managing Workforce Diversity
• Improving Quality and Productivity
• Improving Customer Service
• Improving People Skills
• Stimulating Innovation and Change
• Working in Networked Organizations
• Helping Employees Balance Work-Life Conflicts
• Creating a Positive Work Environment
• Improving Ethical Behavior

Challenges and Opportunities for OB
• Responding to Globalization
– Increased foreign assignments
– Working with people from different cultures
– Overseeing movement of jobs to countries with low-
cost labor
– Managing people during the war on terror
• Managing Workforce Diversity
– The people in organizations are becoming more
heterogeneous demographically ( gender, age,
national origin, race, and domestic partners)

Developing an OB Model
• A model is an abstraction of reality: a
simplified representation of some real-world
phenomenon.
• Our OB model has three levels of analysis:
– Each level is constructed on the prior level
• Individual
• Group
• Organizational Systems (Exhibit 1-5)

Types of Study Variables
Independent (X)
– The presumed cause of the
change in the dependent
variable (Y).
– This is the variable that OB
researchers manipulate to
observe the changes in Y.
Dependent (Y)
– This is the response to X (the
independent variable).
– It is what the OB researchers
want to predict or explain.
– The interesting variable!
X → Y → Predictive Ability

Interesting OB Dependent Variables
• Productivity
– Transforming inputs to outputs at lowest cost. Includes the
concepts of effectiveness (achievement of goals) and efficiency
(meeting goals at a low cost).
• Absenteeism
– Failure to report to work – a huge cost to employers.
• Turnover
– Voluntary and involuntary permanent withdrawal from an
organization.
• 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.

More Interesting OB Dependent
Variables
• 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 (not a behavior) toward one’s
job; a positive feeling about one's job resulting
from an evaluation of its characteristics.

The Independent Variables
The independent variable (X) can be at any of these three
levels in this model:
•Individual
– Biographical characteristics, personality and emotions, values
and attitudes, ability, perception, motivation, individual learning
and individual decision making.
•Group
– Communication, group decision making, leadership and trust,
group structure, conflict, power and politics, and work teams.
•Organization System
– Organizational culture, human resource policies and practices,
and organizational structure and design.

Summary and Managerial Implications
• Managers need to develop their interpersonal
skills to be effective.
• OB focuses on how to improve factors that
make organizations more effective.
• The best predictions of behavior are made
from a combination of systematic study and
intuition.
• There are many OB challenges and
opportunities for managers today.

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