Mba

Organizational Behaviour(565)
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MBA(3rd Semester)
ORGANIZATIONAL BEHAVIOR(565)
Presented to: Miss.Nazia Rafique

Presented By: Akasha Butt
Roll #: AD 511919
Allam Iqba Open University Islamabad

(Department of Business Administration)
Miss Nazia Rafique Page 1

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Q#1
Define the importance of Organizational

Behaviour.How can we relate total quality
management with organizational behavior?

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The Importance of Organizational

Behavior
What Is Organizational Behavior?

“Organizational behaviour is a field of study that investigates the impact that Individuals, groups and
organizational structure have on behavior within the Organization, for the purpose of applying such
knowledge towards improving an Organizational effectiveness”.
Organizational behavior is an academic discipline concerned with describing, understanding,

predicting, and controlling human behavior in an organizational environment. The field is
particularly concerned with group dynamics, how individuals relate to and participate in groups, how
leadership is exercised, how organizations function, and how change is effected in organizational
settings. When organizational behavior theory is directed specifically at ways in which management
can control an organization, it is sometimes known as organizational behavior management, or
OBM.
Organizational behavior is a fairly new discipline, dating back to the early 20th century, although
some experts suggest that it came into existence right after the U.S. Civil War. Organizational
behavior has evolved from early classical management theories into a complex school of thought,
and it continues to change in response to the dynamic workforce in which today's businesses operate.
The System Approach To Organizational Behavior
Modem theorists apply a five-part system approach to organizational behavior:
• the individual
• the formal organization
• the informal organization
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• the fusion process, in which the first three modify and shape one another
• the physical environment
Each part is essential. None can exist alone in the system. This system approach is the basis for
modem organizational theory, which is founded on behavioral science studies.
Importance of Organizational Behaviour:
In any organization one can assume that the main goal of that business is to succeed; what exactly
does being a winning organization mean and what does it take to get there? In the past companies
placed a great amount of emphasis on the numbers and how to achieve those numbers. The people
who actually helped achieve those numbers were graded on their technical skills, productivity, and
budgets. Employees were moneymaking machines and how they achieved those numbers was not a
concern of their managers as long as the numbers were being met. Organizational behavior studies
have become more important today than in previous years because corporations must learn to adapt
to the rapidly changing business cultures that have stemmed from a competitive and fast-paced
market. Organizational behavior was a topic that was not discussed until an employee's behavior
changed, productivity changed, or sales decreased. In today's business world, managers are paying

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more attention to how employees react to situations rather than if they respond. They are beginning
to view organizational behavior as an intricate piece of training and development of the workforce.
Soft skills were never a part of management training and it was rare that managers were commended
for having those skills. In the business world today, I feel organizational behavior is an essential tool
for managing effective teams. If you can zone in on an employees' personality, creativity, and
adaptability, motivating that employee the way they need to be motivated is never a gray area and a
guaranteed success.
 Develop skills to function effectively in the workplace.
 Grow personally through insight into human behavior.
 Enhance overall organizational effectiveness
 Sharpen and refine common sense.
 Organizational behavior relates to the process—rather than the content—of
conducting managerial work.
 An essential requirement for entering into, surviving, and succeeding in the modern
workplace is to have appropriate skills.
 Organizational behavior skills have gained in importance in the modern workplace.
 Soft skills generally refer to interpersonal skills such as motivating others,
communicating, and adapting to people of different cultures. Hard skills generally
refer to technical skills.
 Personal Growth through Insight Into Human Behavior:
Understanding others leads to personal fulfillment, and can also lead to enhanced
self-knowledge and self-insight. Insight is useful for such purposes as selecting
people for jobs and assignments, communicating, and motivating.
 Enhancing Organizational and Individual Effectiveness:
 An important goal of organizational behavior is to improve organizational

effectiveness, the extent to which an organization is productive and satisfies the
demands of its interested parties.

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 People-oriented management practices enable workers to use their wisdom and to

receive appropriate training.
 If a person develops knowledge about subject such as improved interpersonal

communication, conflict resolution, and teamwork, he or she will become more
effective.
 Sharpening and Refining Common Sense:

Organizational behavior sharpens and enlarges the domain for common sense.
Organizational behavior knowledge also refines common sense by challenging you to
reexamine generally accepted ideas that may be only partially true—such as inactivity
reduces stress for everybody
 OB involves integration of studies undertaken relating to behavioural sciences like
Psychology, sociology, anthropology, economics, social psychology and political
science. Therefore, organizational behavior is a comprehensive field of study in
which individual, group and organizational structure is studied in relation to
organizational growth and organizational culture, in an environment where impact of
modern technology is great. The aim of the study is to ensure that the human
behaviour contributes towards growth of the organization and greater efficiency is
achieved.
Relationship of Total Quality

Management and Organizational
Behavior
TQM and Organizational Behaviour:

Implementing TQM entails a major change in organizational behaviour and if we do not consider it,
it will lead to failure. Leaders, organizational culture, empowerment and their development play an
especially important role to achieve the objectives we set.

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Today, there is only one certain thing in the life of organizations and corporations, being challenged
by continuous change. It is much better to participate in these changes with awareness than just
suffer them passively. One of the possible answers to the changes is TQM that is rather a
management than a quality philosophy.
The hundred-year-old practice of management (organizing and leadership) has justified that
there are no present general organization-transformational principles and this view has gained
greater attention in the literature since the 50s. ‘Basic truth’ is usually trivial or they express general
principles that do not really help in solving real problems. It does not necessarily mean that this
theory is useless in sciences but it does not fit the applications of management. There are no general
‘recipes’ for applying change processes, they have to be established and carried out ‘then and there’
by leadership and management.
TQM and Modern Management Trends

Critiques of TQM often make the new methods compete with each other and they publish those
results that BPR or Benchmarking are more successful and more effective methodology than the
two-decade old TQM. New ideologies appear year by year and consultants enthusiastically say that
the aged or 10 year old models are
 A lot of authors use a ‘softer’ definition when identifying TQM, e.g. ‘management climate.It
is shown that this is not a well-structured system or method. In the article simply the
expression ‘TQM’ will be used.
 It would be worth surveying widely what percentage of the projects fails or succeeds. The
data in the studies published are so diverse and different that we consider them as only
guessing so we would not refer to these numbers and data. (Also the reason for this is that
there is no common terminology for certain theories and methods that would be standard
considering methodology, intensity and areas affected by change. All over. These are usually
similar programs with similar goals and tools highlighting one part of management
procedures or corporate functions and resources.
 This complementary relationship is not only justified by experience but by the

Theoretical research studies of change management. Thinking of the paradigm of

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Periodical balance: the continuous incremental development can be applied during balanced periods
whereas radical change which is a characteristic of BPR counts as merely one but not the only
method of managing revolutionary periods. It is also relevant that most trends contain several useful
elements that should be built into the TQM system (continuous development, learning). According
to the authors of this article there is no comprehensive new management trend that replaces TQM
principles and methodology.
.
TQM Monitor all aspects of OB:
Total quality management (TQM) is the term used to describe comprehensive efforts to monitor and
improve all aspects of quality within Organizational behaviour. Teamwork plays a major role in
quality improvement. Total quality management efforts could include employee training,
identification and measurement of indicators of quality, increased attention to work processes, and
an emphasis on preventing errors in production and service. What is the connection between TQM
and OD? Both require a high degree of employee commitment, involvement, and teamwork. Many
decisions must be made at the level where the work is accomplished, and managers must be willing
to give employees this power. Managers empower employees to make decisions and take
responsibility for their outcomes.
Job enrichment is often thought of as a technique of OD. It involves changing a job by adding
additional tasks and by adding more responsibility. The widespread use of self-managed teams
results in significant job enrichment. By the mere definition of self-managed teams, employees are
now being asked to perform new tasks and exercise responsibilities within the team that they haven't
had to perform before.
Behavior Principles Are Well Established in TQM
The principles that explain and influence employee behavior are well established and need to be
integrated into management systems and performance initiatives.
For example, there is a large volume of data detailing the successful results of applying behavioral
tools to safety and health programs. Companies can apply these same behavior-based tools to other
facets of their business and better realize the potential of performance initiatives.
For instance, it’s long been established that company-wide phone messages or e-mails from top

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management, in and of themselves, have little or no influence on employees’ daily effort level or
commitment. Instead, intangibles like job satisfaction, discretionary employee effort, and
organizational commitment are influenced by factors such as:
• Supervisory Behavior – daily patterns of attention to and communication with employees

• Organizational Recognition – the response of the organization to employee improvement,
accomplishment, and value added behavior
• Reward Systems – incentives, bonuses, and promotions for employee performance
Behavioral Technology: The Best TQM Tool e.g. (six sigma)
Understanding general human behavior allows managers to understand why employees

occasionally act counterproductively or neglect to follow correct work procedures.
There is a group of tools based on research into behavior principles known as behavioral
technology. Behavioral technology is a positive reinforcement approach to maximizing employee
performance. While Six Sigma and similar initiatives may include occasional celebrations of
achievement, frequent feedback related to behavior is not central to these programs.
Behavioral technology, on the other hand, relies on supervisors and managers to accelerate, and
sustain change through well-timed comments, questions, and actions that reinforce employees for
mastering new tasks and behaviors. Behavioral technology can enhance any performance
improvement initiative by assisting a company to:
• Recognize and understand that people behave in a manner consistent with the consequences
they have experienced as a result of their behavior
• Track behaviors in the organization
• Compare these behaviors with “best practice” behaviors
• Pinpoint which behaviors in the organization need to be changed and which are necessary to
achieve the goals of the organization
• Develop ways to reward those employees attempting the new “good” behaviors
• Measure the effectiveness of the new behaviors

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• Evaluate the benefits of the new behaviors and pinpoint which new behaviors are not being
accepted or not creating the anticipated benefits
Embarking on a large-scale performance improvement program is a major step in the life of a

company. It is wise to do so only when the employee behavioral aspects of such a radical change
are understood. Organizations that launch an enterprise-wide program in tandem with a
commitment to fostering the right kinds of employee behavior can help employees to avoid errors,
anticipate problems, volunteer discretionary effort, and assist team members.
TQM take productive initiative in OB:

In the late 1980s and 1990s, the corporate quest to match Japanese innovations in quality
management and performance improvement brought on the formalization of the performance
improvement process. Instead of introducing self-contained performance goals, companies launched
customer-focused, enterprise-wide process improvement programs such as Six Sigma, Bald ridge,
Total Quality Management (TQM), and Kaizen (itself a Japanese quality management process).
Large global companies have embraced aspects of process improvement programs. Many
organizations have successfully used the measuring and monitoring tools to better quantify quality
improvements in Organizational Behavior. But the results of employee-focused or motivational
initiatives, on the other hand, have been mixed. Broad-based programs, with highly structured
systems that require massive changes in the way employees work, have proved challenging to
implement – often because of employee resistance. Organizations that have managed to extract
enormous value out of quality improvement initiatives have two things in common: a general
understanding of human behavior and specific knowledge of the employee behaviors already
prevalent in their respective companies.

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Q#2
Outline the importance of an individual’s contribution
to the organization and the forces affecting his
behavior?

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Individual’s contribution to the

Organization
Organizational Behavior (OB) is the study and application of knowledge about how people,
individuals, and groups act in organizations. It does this by taking a system approach. That is, it
interprets people-organization relationships in terms of the whole person, whole group, whole
organization, and whole social system. Its purpose is to build better relationships by achieving
human objectives, organizational objectives, and social objectives.
As you can see from the definition above, organizational behavior encompasses a wide range of
topics, such as human behavior, change, leadership, teams, etc. Since many of these topics are
covered elsewhere in the leadership guide, this paper will focus on a few parts of OB: elements,
models, social systems, OD, work life, action learning, and change.
Individualization as an Elements of Organizational Behavior

The organization's base rests on management's philosophy, values, vision and goals. This in turn
drives the organizational culture which is composed of the formal organization, informal
organization, and the social environment. The culture determines the type of leadership,
communication, and group dynamics within the organization. The workers perceive this as the
quality of work life which directs their degree of motivation. The final outcome is performance,
individual satisfaction, and personal growth and development. All these elements combine to build
the model or framework that the organization operates from.
Social Systems, Culture, and Individualization

A social system is a complex set of human relationships interacting in many ways. Within an
organization, the social system includes all the people in it and their relationships to each other and
to the outside world. The behavior of one member can have an impact, either directly or indirectly,
on the behavior of others. Also, the social system does not have boundaries... it exchanges goods,
ideas, culture, etc. with the environment around it.
Culture is the conventional behavior of a society that encompasses beliefs, customs, knowledge, and
practices. It influences human behavior, even though it seldom enters into their conscious thought.
People depend on culture as it gives them stability, security, understanding, and the ability to
respond to a given situation. This is why people fear change. They fear the system will become
unstable, their security will be lost, they will not understand the new process, and they will not know
how to respond to the new situations.
Individualization is when employees successfully exert influence on the social system by

challenging the culture.

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The quadrant shown below shows how individualization affects different organizations (Schein,
1968):
• Quadrant A — Too little socialization and too little individualization creates isolation.
• Quadrant B — Too little socialization and too high individualization creates rebellion.
• Quadrant C — Too high socialization and too little individualization creates conformity.
• Quadrant D — While the match that organizations want to create is high socialization and
high individualization for a creative environment. This is what it takes to survive in a very
competitive environment... having people grow with the organization, but doing the right
thing when others want to follow the easy path.
This can become quite a balancing act. Individualism favors individual rights, loosely knit social
networks, self-respect, and personal rewards and careers — it may become look out for Number
One! Socialization or collectivism favors the group, harmony, and asks “What is best for the
organization?” Organizations need people to challenge, question, and experiment while still
maintaining the culture that binds them into a social system.

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Organization Development &

Individual contribution:
Organization Development (OD) is the systematic application of behavioral science knowledge at
various levels, such as group, inter-group, organization, etc., to bring about planned change. Its
objectives are a higher quality of work-life, productivity, adaptability, and effectiveness. It
accomplishes this by changing attitudes, behaviors, values, strategies, procedures, and structures so
that the organization can adapt to competitive actions, technological advances, and the fast pace of
change within the environment.
There are seven characteristics of OD related to individual contribution Humanistic Values:
1. Systems Orientation: All parts of the organization, to include structure, technology, and
people, must work together.
2. Experiential Learning: The learners' experiences in the training environment should be the
kind of human problems they encounter at work. The training should NOT be all theory and
lecture.
3. Problem Solving: Problems are identified, data is gathered, corrective action is taken,
progress is assessed, and adjustments in the problem solving process are made as needed.
This process is known as Action Research.
4. Contingency Orientation: Actions are selected and adapted to fit the need.
5. Change Agent: Stimulate, facilitate, and coordinate change.
6. Levels of Interventions: Problems can occur at one or more level in the organization so the
strategy will require one or more interventions.
Quality of Work Life & Individual Contribution
Quality of Work Life (QWL) is the favorableness or favorableness of the job environment. Its
purpose is to develop jobs and working conditions that are excellent for both the employees and the
organization. One of the ways of accomplishing QWL is through job design. Some of the options
available for improving job design are:
• Leave the job as is but employ only people who like the rigid environment or routine work.
Some people do enjoy the security and task support of these kinds of jobs.
• Leave the job as is, but pay the employees more.
• Mechanize and automate the routine jobs.
• And the area that OD loves — redesigns the job.
When redesigning jobs there are two spectrums to follow — job enlargement and job enrichment.
Job enlargement adds a more variety of tasks and duties to the job so that it is not as monotonous.
This takes in the breadth of the job. That is, the number of different tasks that an employee performs.
This can also be accomplished by job rotation.
Job enrichment, on the other hand, adds additional motivators. It adds depth to the job — more
control, responsibility, and discretion to how the job is performed. This gives higher order needs to
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the employee, as opposed to job enlargement which simply gives more variety. The chart below
illustrates the differences
The benefits of enriching individual jobs include:
• Growth of the individual

• Individuals have better job satisfaction
• Self-actualization of the individual
• Better employee performance for the organization
• Organization gets intrinsically motivated employees
• Less absenteeism, turnover, and grievances for the organization
• Full use of human resources for society
• Society gains more effective organizations
• Skill Variety: Perform different tasks that require different skill. This differs from job
enlargement which might require the employee to perform more tasks, but require the same
set of skills.
• Task Identity: Create or perform a complete piece of work. This gives a sense of completion
and responsibility for the product.
• Task Significant: This is the amount of impact that the work has on other people as the
employee perceives.

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• Autonomy: This gives employees discretion and control over job related decisions.
• Feedback: Information that tells workers how well they are performing. It can come directly
from the job (task feedback) or verbally form someone else.
Factors affecting an individual’s behavior in organization

I. MARS MODLE OF INDIVIDUAL PERFORMANCE
The MARS model represents four factors that directly influence an employee’s voluntary behavior
and resulting performance motivation, ability, role perceptions, and situational factors.
• Employee Motivation
o Motivation: represents the forces within a person that affect his or her direction,
intensity, and persistence of voluntary behavior.
 Direction: refers to the fact that the motivation is goal-oriented, not random.
 Intensity: is the amount of effort allocated to a goal.
 Persistence: refers to continuing the effort for a certain amount of time.
• Ability
o Includes both the natural aptitudes and learned capabilities required to successfully
complete a task.
 Aptitudes: natural talents that help employees learn specific tasks more
quickly and perform them better.
 Learned capabilities: the skills and knowledge that you have actually
acquired.
• Employee competencies

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o Refer to the characteristics of people that lead to superior performance.

o Include not only the natural and learned abilities, but also the persons values and
personality traits.
• Person-job matching
o Three basic strategies to match individual competencies with job requirements:
 Select applicants whose existing competencies best fit the required tasks.
 Provide training so employees develop required skills and knowledge.
 Redesign the job so employees are given tasks within their capabilities.
• Role perceptions
o Enable employees to understand specific tasks assigned to them, the relative
importance of those tasks, and the preferred behaviors to accomplish those tasks.
o Clarify the preferred direction of effort.
• Situational Factors
o Affected by the situation in which the employee works.
o Include factors such as time, people, budget, and physical work facilities as well as
external factors such as the state of the economy or demographics of the area.
II. TYPES OF WORK-RELATED TO INDIVIDUAL BEHAVIOR
• Joining the organization

o Organizations hire people to:
 achieve goals and objectives.
 avoid labor shortages.
 build a visionary team.
• Remaining with the organization
o Intellectual capital provides a vast realm of important resources.
 Long-service employees have valuable information about work processes,
corporate values, and customer needs.
 Some firms assess intellectual capital as 95% of its assets.
o Organizations experience difficulty in retaining employees.
 U.S Bureau of Labor Statistics reports that the typical American employee
holds 9 different jobs by the time they are 32 years old.
 Retaining talented employees has been recognized as a top issue in
companies.
 Main cause of employee turnover is job satisfaction a person’s evaluation of
his or her job and work content.
• Maintaining Work Attendance
o Companies have various ways to reduce absenteeism:
 Free flu shots and health screenings.
 Telecommuting working from home.
 Motivational rewards for good attendance.
• Performing Required Tasks
o Task Performance refers to goal-directed activities that are under the individual’s
control.
o Performance standards minimum acceptable levels of behaviors within the
organization.
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• Exhibiting Organizational Citizenship

o Organizational Citizenship refers to behaviors that extend beyond the employee’s
normal job duties.
 Avoiding unnecessary conflicts
 Helping others without selfish intent
 Gracefully tolerating occasional impositions
 Being involved with organizational activities
 Performing tasks that are beyond normal role requirements.
o Two conditions essential for organizational citizenship:
 Perceived fairness of the company’s treatment of employees.
 Degree to which employees hold strong ethical values, particularly with a
sense of social responsibility a persons or organizations moral obligation
toward others who are affected by his or her actions.
o Organizational citizenship is improved through employee involvement getting
employees involved in the decisions that affect them.

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Q#3
Discuss the role of information technology with
reference to the organizational behavior?

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Role of Information Technology with

reference to organizational behavior
in organizations.
IT links the employees:
As compared to face-to-face communication, the use of electronic communication has been shown in
the literature to increase the overall amount of communication in the organization This implies what
is perhaps the most fundamental benefit resulting from IT use in organizations; the ability to link and
enable employees both within and between functions and divisions--whether through database
repositories, teleconferencing, or electronic mail--and achieve INE and INS. For example, one of the
most direct ways in which IT impacts organizational functioning is through its effects on horizontal
coordination. The application of IT has been shown to aid cross-functional workflow concurrent
engineering and stockless production. Increasing online interdependencies makes critical
information more accessible and transparent to employees and increases the incidence of problem-
solving IT can also play an important role in allowing organizations to explore new modes of
structuring their workforce. Several authors have also shown how IT successfully links employees in
many emerging organizational forms, such as the virtual organization For example; show that
telecommuting increases employees' positive perceptions of both procedural and interactional
justice. However, having to rely largely on IT for communication purposes in lieu of face-to-face
communication can lead to increased alienation among employees.
IT enables the employees:
Although empirical research on these issues is just beginning, one example of the utility of
information exchanged through electronic ties is provided by Constant, They analyzed computer
communications between information seekers and potential information providers at Tandem
Computer Corporation. Their findings suggest information providers gave useful advice and solved
the problems of information seekers, despite their lack of any personal connection with the seekers.
This is supported by who argue that the only issue the literature shows consistent findings on is that
divergent thinking tasks are completed more effectively electronically rather than face-to-face.
Another example, from closer to home, is the Research Methods Network, a cyber-meeting place
created by the Research Methods Division of the Academy of Management. Through the service
provided by the network, hundreds of scholars seeking assistance and resources relating to often
complex research methodology questions are routinely assisted by the voluntary efforts of other
scholars on the network.

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Example:
The benefit of linking employees and creating information efficiencies has not been lost on industry.
For example, at General Motors, senior executives became concerned about their process for using
market information. They found that information about the kinds of vehicles that appeal to
customers had not been used speedily or effectively within the company, especially during new
product development and product launches. They determined that pertinent information was often
available, yet was not acquired by the right employees in a timely fashion. In response to this
problem the firm has implemented a new IT-based product development process which relies on a
computerized "Inquiry Center" as a centralized source of market information, now ensuring that key
employees are linked together throughout the process
IT put Impact on Communication process:
It should be noted that simply serving as a link does not guarantee that IT will positively impact
communication processes. It is also possible that even given the wide availability of weak tie
linkages due to IT, the motivation of some organizational members to provide information through
these links may be low. Nonetheless, there are several reasons to expect that sufficient motivation
may be present. First, sharing expertise can increase a person's self-esteem, identification with the
organization, respect from others, and feelings of commitment. Second, a person may be motivated
through feelings of organizational citizenship. In addition, a third explanation may be that the
organization's culture has shaped norms which encourage the use of IT media, a topic we will
address shortly.
The downside to linking employees must be noted as well. It is possible that not only the amount of
good advice information seekers receive will increase, but bad advice may increase as well. Help
seekers have no way of assessing the information providers expertise, motives, and so on (Constant
et al., 1996). However, many firms work to ensure the reliability of information received via
electronic weak ties by forming distinct on-line communities where collections of experienced
employees within a given area can be located (e.g., a software developers forum, a sales force
intranet, a manufacturing discussion group). By creating logical content communities, those who
respond to information requests are in a sense prescreened as to the quality of advice they might
offer .
IT used to communicate in a given instance is appropriate for the specific context or task. In
addition, where one does wish to convey tacit information via IT, we would add that due to advances
in technology the use of IT no longer precludes the capture of soft or tacit knowledge as several
authors have warned. For example, IT applications allowing for the simultaneous use of audio and
video media in group settings to convey messages is becoming widespread, overcoming earlier
concerns that were based on single-media IT applications (e.g., electronic mail).

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IT codifies the knowledge base:
Memory is clearly fallible and subject to erosion and error; the human capacity for memory as a
component of organizational memory is less than perfect (Huber, 1990). Inside an organization,
memory has also been quite fallible because, as a collective of individuals, the firm is only able to
maintain a minuscule portion of the information that is currently available to it. Advances in IT have
greatly facilitated organizational memory and the ability to capture and integrate explicit knowledge
by making it easy to codify, communicate, assimilate, store, and retrieve
The significance of IT can be seen from the fact that it has penetrated almost every aspect of our
daily lives from business to leisure and even society. Today personal PCs, cell phones, fax machines,
pagers, email and internet have all not only become an integral part of our very culture but also play
an essential role in our day to day activities. With such a wide scope for the purpose of this article
we shall focus on the impact of the internet in information technology.
Globalization constructs Organizational behavior:

IT has not only brought the world closer together, but it has allowed the world's economy to become
a single interdependent system. This means that we can not only share information quickly and
efficiently, but we can also bring down barriers of linguistic and geographic boundaries. The world
has developed into a global village due to the help of information technology allowing countries like
Chile and Japan who are not only separated by distance but also by language to shares ideas and
information with each other.
Communication helps creating good organizational

behaviour:
With the help of information technology, communication has also become cheaper, quicker, and
more efficient. We can now communicate with anyone around the globe by simply text messaging
them or sending them an email for an almost instantaneous response. The internet has also opened
up face to face direct communication from different parts of the world thanks to the helps of video
conferencing.
Cost effectiveness ultimately effects on Organizational

behaviour:
Information technology has helped to computerize the business process thus streamlining businesses
to make them extremely cost effective money making machines. This in turn increases productivity
which ultimately gives rise to profits that means better pay and less strenuous working conditions.

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Bridging the cultural gap creates good organizational

behavior :
Information technology has helped to bridge the cultural gap by helping people from different
cultures to communicate with one another, and allow for the exchange of views and ideas, thus
increasing awareness and reducing prejudice.
More time means more production:

IT has made it possible for businesses to be open 24 x7 all over the globe. This means that a
business can be open anytime anywhere, making purchases from different countries easier and more
convenient. It also means that you can have your goods delivered right to your doorstep with having
to move a single muscle.
Creation of new jobs

Probably the best advantage of information technology is the creation of new and interesting jobs.
Computer programmers, Systems analyzers, Hardware and Software developers and Web designers
are just some of the many new employment opportunities created with the help of IT.

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Q#4
“Happy workers are productive worker” The idea that
happy workers are productive worker developed in the
1930s and 1940s.Based on this managers worked to
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make their employees…………………………………

happier…………………………………………………
…………………………………………………………
……….if you do well on your job,yo0u feel good
about it.
Q-Discuss the above comparison and present your
comments.
Yes, I agree that happy/satisfied

worker is more productive:
Happy employees exhibit higher levels of job-related performance behaviors than do unhappy
employees. However, despite decades of study, support for this hypothesis remains equivocal. We
propose that these inconsistent findings may be a consequence of the disparate manner in which
happiness has been operationalized. While psychological well-being predicted job performance, the
results failed to establish relations between job satisfaction and dispositional affect as predictors of
job performance.
According to Hawthorne studies, the happy/productive worker has intrigued both organizational
scholars and managers. According to this hypothesis, "happy" workers demonstrate higher levels of
job-related performance behaviors than do "unhappy" employees. Yet, despite the longevity of this
debate, the veracity of the happy/productive worker thesis remains in doubt. Part of this confusion
may result from the disparate manner in which happiness has been understood and measured

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Job Satisfaction and Performance
By far the most common means of testing the happy/productive worker has been by examining the
relation between job satisfaction and job performance. More specifically, proponents of the human
relations school of management emphasized the supposed need or desire for employees to get along
with co-workers and be satisfied with their jobs. Job satisfaction thus came to be considered as a
reflection of how desirable or attractive an employee considered their job to be. As a consequence, a
number of theories evolved concerned with examining the proposed impact of job satisfaction on
such worker-related behaviors as turnover, absenteeism, and tardiness. In addition, even though none
of these theories provided a clearly defined theoretical justification for a job satisfaction-
performance relation, over time, this supposed happy-productive worker thesis came to be
considered as fact by many. However, in actual fact, the net result of a number of scientific reviews
is less clear-cut regarding the supposed utility of the job satisfaction-performance relation. Although
some have been skeptical, others have been more optimistic.
Job Satisfaction is an important predictor for Job

Performance
Across a variety of studies, research shows that job satisfaction is an important predictor of job
performance. A happy worker is a productive worker. On average, the correlation between
satisfaction and productivity is about r = .30. The magnitude of this correlation is similar to the
ability of standardized tests to predict college grades, mammograms to predict breast cancer, alcohol
to increase aggression, and Viagra to increase sexual performance – in other words, job satisfaction
is vitally important to worker productivity. To the extent that the university takes steps to increase
employee satisfaction, graduate employees will be more efficient in completing tasks, more
thoughtful and less stressed in teaching, and more productive in conducting and publishing research.
CASE STUDY: (RESEARCH)

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In a similar meta-analysis, analyzing data from over 50,000 workers,

again job satisfaction was estimated to modestly correlate with job
performance, r = .30.
As the above diagram shows, the relationship between job satisfaction

and job performance is complex, and likely cyclical. Studies have shown
that increased job satisfaction leads to increased motivation (behavioral
intentions), less apathy (low performance as withdrawal), and better
worker mood, all of which increase efficiency and overall quality of job
performance.
This is a meta-analysis documenting the relationship between various

measures of job satisfaction and various measures of job performance. In
general, correlations are about r = .30, which indicate modest effects.

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In a study of over 5,000 employees, employees self-reported their level of

psychological well-being. This was then compared to supervisor ratings of
job performance. The correlation between satisfaction and performance
was r = .36, indicating a modest effect.
Schleicher, D., Watt, J., & Greguras, G. (2004). Reexamining the job
satisfaction–performance relationship: The complexity of attitudes. Journal
of Applied Psychology, 89, 167-177.
Across two separate studies, using several different measures of job

satisfaction, they found that worker satisfaction modestly predicted job
performance, with correlations ranging from r = .23 to r = .38.
Jacobs, P., Tytherleigh, M., Webb, C., & Cooper, C. (2007). Predictors of
work performance among higher education employees: An examination
using the asset model of stress. International Journal of Stress
Management, 14, 199-210.
A variety of variables related to job satisfaction have been show to predict

performance. For example job performance was predicted by work-life
balance (r = .32), job security (r = .29), resources (r = .34), employer
commitment (r = .36), and pay and benefits (r = .26).

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Effects of manipulation of job satisfaction

Another possible way of studying the effects of job satisfaction is by seeing if enhancing
Satisfaction results in greater productivity, etc. However, most of these studies have not been
Analyzed to distinguish between three possible causal sequences:
(1) Changed conditions job satisfaction productivity
Job satisfaction
(2) Changed conditions
Productivity
(3) Changed conditions productivity job satisfaction
However, if satisfaction is enhanced and productivity is not, this would at least show that satisfaction
does not influence productivity.
Happy people fix problems instead of complaining about

them:
When you don’t like your job every molehill looks like a mountain. It becomes difficult to fix any
problem without agonizing over it or complaining about it first. When you are happy at work and
you run into a snafu-you just fix it.
Happy people have more energy:
Happy people have more energy and are therefore more efficient at everything they do.
Happy people learn faster:
When you are happy and relaxed you are much more open to learning new things at work and
thereby increasing their productivity.

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Happy people make better Decisions:
Unhappy people work in and make decision in full crisis model. They focus narrow they lose sight
for the big picture, their survival instincts kick in and they are more likely to make more short term
here-and-0now choice.
Happy worker become more efficient:

If a worker is free of worries and is satisfied doing job he can become more efficient in
a way that he can pay more attention to its work rather than wandering his thoughts
from here to there.
Happy worker are more loyal to their work:

Loyalty become where you are considered an important part of organization and your
worries are been taken away from your shoulders to the organizatione.g education
allowance, marriage fund, home renovation loan etc.
Happy worker put more concentration on their work:

Concentration occurs when there are no other things to worry for, so if domestic and
financial worries are eliminated then the worker will be more concentrated with the
result of more productivity activities.
Happy worker consider them part of organization:

Happy workers are paid well and are appreciated for their work, so they consider
themselves part of the organization which ultimately results in the form of more and
better production.
In my National Post column titled Put On a Happy Face, Pile on the Profits , I cited research that
shows a 1% positive increase in a worker's relationship with the boss is equal to a 30% increase in
salary. Psychologists and researchers from around the world, including studies by Ed Denener,
Martin Seligman, Daniel Goleman, Stephen Post, Ruut Veenhoven and John Helliwell have all
concluded the following:
Happy worker result greater production and positive work

behavior:
Creating conditions under which workers feel happy about their work results in greater
productivity and other positive work behaviors.

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Happy worker tends higher pay:
Happier people tend to get better performance evaluations and higher pay.
Happy individuals carry positive relationship
Happy individuals are more likely than their less happy peers to have fulfilling, positive
relationships, superior work performance and robust health.
In my two decades of working with senior managers -- including chief executives -- focusing on
developing productive workplaces, employee motivation and peak performance, it is clear the vast
majority of happy people get more enjoyment from their jobs, are less likely to be bored and enjoy
better relationships with their superiors and peers.
They tend also to have more mastery over themselves and their surroundings in order to achieve
their goals. They are more serious, intentional and organized about accomplishments and are
persistent, autonomous and responsible.
Happy worker a satisfying worker:
So the question becomes are workers happy as a result of satisfying work, or are they happy to begin
with and therefore become more productive employees? In a similar vein, are people happy because
they have attained a certain level of wealth, success and status, or have they attained those things
because they are happier and more satisfied with themselves? In other words is it correlation or
cause and effect that create happiness.
In my experience, and it's being borne out by recent research, happy people become more successful
and productive. People's success in life, rather than being the cause for happiness, as we commonly
think in our society, just may be the outcome of happiness. And that success includes being a more
productive worker.
In a competitive global economy in which companies are struggling to survive and succeed,
recruitment, retention and engagement of the top talent have become critical management
challenges. If happy workers are more productive workers, it is incumbent upon employers and their
managers to make happy frame of mind criteria for hiring, and also create working conditions that
encourage happiness. Consider it one of the most significant strategies for improving bottom-line
performance.
According to sociological research:

According to sociological research (Collins 2004: 269-270), the workplace social structure is much
more contentious than the above images of the happy worker imply. The top managers and
employers envision a bureaucratic model where those at the top give orders while those at the
bottom take orders. Their view is one of complementarity where the top has a right to command
while the bottom has a duty to obey. Any degree of reciprocity is one arrived at through negotiation

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and potential conflict depending on the exit power or alternative sources of income, of workers or
voice power given to them by collective organization. The status and identity aspects emphasized by
Phelps vary according to many factors. Ethnographic studies of working class workers on the job
usually show a style of alienation from the demands of work, combined with attempts to control the
work place and a high preference for private lives over work lives. Retirement, with an adequate
income, is one of the highest goals and a topic of constant conversation. Often, the pressures in
trying to move up the ladder in terms of seniority or privileges do create a tendency to view those
below in a negative light. As we will see in the next section, this has been a problem in getting
workers with a job to support welfare. Such support only comes if the workers see that they too
could become unemployed and in need of assistance.
Q#5
As sales managers Charles Occasionally relies on
punishment to try to improve his employee’s
performance.Forinstance,one………………………….
time……………………………………………………
…………………………………………………………
…………………………………………………………
……….For some people public embarrassment works.
Questions:

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1. What conditions, if any, do you think justify the

use of punishment?
2. Do you think most managers use punishment? If
so, why?
3.What is the downside of using punishment? And
of using positive reinforcement?
4.What would your behavior response be if you had
to work for a boss who uses punishment?
Q#1
What conditions, if any, do you think justify the use of
punishment?
There is no condition that can justify the use of punishment in the workplace. There are guide lines
for everyone to follow, and that guide line is there to protect you for a reason. Even if the condition
was so extreme and needed to be addressed as soon as possible there are ways of correcting an
individual without rendering a punishment.
I'd like to start answering this question stating that conditions in which justifies punishment is how a
person is raised as a child, what kind of family they were born into, and what kind of lifestyle
conditioning they have received as a person.
See for me, I was born in 1980 adopted at two years old with my mom and dad being somewhat
uneducated. They in turn both rose within families with parents who yelled and beat them as
punishment to try to change their behaviors. Only to have that same type of lifestyle infiltrated into
the lives of my sister and me.

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In addition, to our lifestyle upbringing, after getting into a few fights in Elementary School I wound
up studying and practicing Karate and Training. During these training periods, I received a lot of
disciple from teacher's who taught us with yelling and hitting, which I learned later that these models
I supposed to look up to, were all their old fashion ways of punishing to change a condition of
behavior.
Presently I am a father, husband, student with children of my own in which I made a vow to myself
not to ever treat my kids with the harsh punishment like I have received. What reinforces this
attitude is how society has changed and it is now almost against the law to beat your children and to
show them disrespect or treat them unfairly.
In the EBook "Organizational Behavior" Foundations of Individual Behavior provides
my answer here in relations to working in an organization of what condition justifies punishment,
and my answer is none.
The reason as I see it is like Pavlov's dog. The unconditioned stimulus the "meat", in which in this
case represents the "manager" and the unconditioned response the "salivation" or "what a manager
expects of the employee" would normally cause an employee to produce what is expected.
The conditioned stimulus the "bell" now represents the "punishment" paired with the "manager"
would temporarily bring a "conditioned response" to the employee who would try their best to
produce better production or performance. However, like the salivating just to the bell alone,
Pavlov's dog ends up without the meat and it produces disappointment
In the end, what proves that managers should avoid punishment as much as possible is a quote which
states:
"Although punishment eliminates undesired behavior more quickly than negative
reinforcement does, punished behavior tends to be only temporarily suppressed rather
than permanently changed. In addition, punishment may produce unpleasant side
effects such as lower morale and higher absenteeism or turnover. In addition, the
recipients of punishment tend to become resentful of the punisher"
Q#2
Do you think most managers use punishment? If so, why?

In my personal experience in the workforce, in which I started before I was out of High School back
in the 80's, I guess many companies had managers who were from the Baby Boom era who may

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have used punishment because it was how they were as a person or from what they got taught as part
of their training.
In case incident 1 it states,
"Many managers still rely on threats to motivate employees, Do it or you're fired"
Since I never had the chance yet to work for a large company I am not aware of the type of training
manager's receive to motivate their employees. However, I have to say in this present age
punishment has subsided to almost being non-existent with new manager's as well as previous one's
receiving the latest training and techniques to properly motivate and inspire their employee's to be
the most productive they can be.
Q#3
What’s the downside of using punishment? Of using positive
reinforcement?
"Organizational Behavior" defines punishment as causing an unpleasant condition in an attempt to
eliminate an undesirable behavior. However, the downside is that as explained in question one, while
punishment may illuminate undesired behavior more quickly, it tends to suppress the change and
produce unpleasant side effects like a lower moral, higher absenteeism or turnovers, and being
resentful to the punisher
Positive reinforcement strengthens a response and increases the probability of repetition but the
timing of the continued scheduled intervals when you proceed to execute positive reinforcement to
employees will determine if they will remain with their continuous good behavior. Otherwise, the
downside would be that if the interval schedules are not timed close enough then behaviors would
not continue.
Q#4
Have you ever worked for a boss who used punishment?
What was your behavioral response?
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To be honest when I was working in my twenties and thirties I took punishment from my bosses as a
way for me to develop, grow and build my character, and accept it as part of my training. I had a
great attitude and ambition to succeed.
However, I am more of an entrepreneur by nature and working for others is like helping them with
their business in my eyes. Nevertheless, at time's I do resort to working for others. My last job I
ended up working for a place in which I thought I have recovered from my mental illness after being
out of the workforce for many years only to find myself being punished by doing dirty work, getting
paid below minimum wage, and having to be yelled at many times. The bosses who were old school
did not want to train me in the areas I had problems with and was not the kind of business that
supported disabled people. That is what I was told when I left on mutual terms.
Because of my health condition and no longer possessed the ambition and attitude I once lived with
inside me, I was always angry inside and became resentful of this company. I am glad I left and
proud of myself for not acting out actions that could have been horrible and I am recovering great
each day.

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Refferences:
• www.ehow.com
• www.totalqualitmanagement.com
• www.piqc.com
• www.google.com

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• www.wikipedia.com
• www.officemanagement.com
• Works Cited
• Judge, S. P. (2007). Organizational Behavior, Twelfth Edition. Prentice Hall.
• Berkman, PL. (1971). Measurement of mental health in a general population survey.
American Journal of Epidemiology, 94,105-111.
• Brief, A.P. (1998). Attitudes in and around organizations. Thousand Oaks, CA: Sage.
• Diener, E. (1984). Subjective well-being. Psychological Bulletin, 95,542-575.
• Forgas, J.P, Bower, G.H., & Moylan, S.J. (1990). Praise or blame? Affective influences on
attributions for achievement. Journal of Personality and Social Psychology, 59, 809-819.
• George, J.M. (1996). Trait and state affect. In K.R. Murphy (Ed.), Individual differences and
behavior in organizations. San Francisco, CA: Jossey-Bass.
• Perrow, C. (1986). Complex organizations: A critical essay (3rd ed.). New York: Random
House.
• Seligman, M.E.P. (1991). Learned optimism. New York: Knopf.
• Staw, B.M., Sutton, R.I., & Pelled, L.H. (1994). Employee positive emotion and favorable
outcomes at the workplace. Organization Science, 5, 51-71.
• Watson, D., Clark, L.A., & Tellegen, A. (1988).
• Development and validation of brief measures of positive and negative affect: The PANAS
scales. Journal of Personality and Social Psychology, 54, 1063-1070.
• Wright, T.A., & Cropanzano, R. (2000). Psychological well-being and job satisfaction as
predictors of job performance. Journal of Occupational Health Psychology, 5, 84-94.
• Wright, T.A., & Staw, B.M. (1999). Affect and favorable work outcomes: Two longitudinal
tests of the happy-- productive worker thesis. Journal of Organizational Behavior, 20, 1-23.
• Received December 10, 2000 Revised May 7, 2001 Revised September 10, 2001 Accepted
April 5, 2002
• THOMAS A. WRIGHT, University of Nevada, Reno
• RUSSELL CROPANZANO, Colorado State University
• PHILIP J. DENNEY, Late of the City/County of San Francisco
• GARY L. MOLINE, Rohnert Park, C
•

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Dedication
By the grace of Almighty ALLAH, I have completed this
assignment as my parents’ prayers and well-wishes have
been with me all the way through. I would like to thank my
instructor, who guided me whenever I needed his help and
guidance.

Mba

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Organizational Behaviour(565)

Presented to: Miss.Nazia Rafique

Allam Iqba Open University Islamabad

Miss Nazia Rafique Page 1

Define the importance of Organizational

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The Importance of Organizational

What Is Organizational Behavior?

Organizational behavior is an academic discipline concerned with describing, understanding,

The System Approach To Organizational Behavior

Modem theorists apply a five-part system approach to organizational behavior:

Importance of Organizational Behaviour:

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 Enhancing Organizational and Individual Effectiveness:

 An important goal of organizational behavior is to improve organizational

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 People-oriented management practices enable workers to use their wisdom and to

 If a person develops knowledge about subject such as improved interpersonal

 Sharpening and Refining Common Sense:

Relationship of Total Quality

TQM and Organizational Behaviour:

Miss Nazia Rafique Page 1

TQM and Modern Management Trends

 This complementary relationship is not only justified by experience but by the

Miss Nazia Rafique Page 1

Behavior Principles Are Well Established in TQM

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• Supervisory Behavior – daily patterns of attention to and communication with employees

Behavioral Technology: The Best TQM Tool e.g. (six sigma)

Understanding general human behavior allows managers to understand why employees

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Embarking on a large-scale performance improvement program is a major step in the life of a

TQM take productive initiative in OB:

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Miss Nazia Rafique Page 1

Miss Nazia Rafique Page 1

Individual’s contribution to the

Individualization as an Elements of Organizational Behavior

Social Systems, Culture, and Individualization

Individualization is when employees successfully exert influence on the social system by

Miss Nazia Rafique Page 1

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Organization Development &

There are seven characteristics of OD related to individual contribution Humanistic Values:

Quality of Work Life & Individual Contribution

The benefits of enriching individual jobs include:

• Growth of the individual

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Factors affecting an individual’s behavior in organization

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o Refer to the characteristics of people that lead to superior performance.

II. TYPES OF WORK-RELATED TO INDIVIDUAL BEHAVIOR

• Joining the organization

• Exhibiting Organizational Citizenship

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Miss Nazia Rafique Page 1

Role of Information Technology with

IT enables the employees:

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IT put Impact on Communication process:

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IT codifies the knowledge base: