Module 1

Introduction to Organizational
Behaviour
 What Is Organizational Behaviour?

1. What is organizational behaviour?

2. Isnt organizational behaviour common sense? Or
just like psychology?
3. How does knowing about organizational behaviour
make work and life more understandable?
4. What challenges do managers and employees face
in the workplace of the twenty-first century?
 Organizational Behaviour

A field of study that investigates the impact of

individuals, groups, and structure on behaviour
within organizations; the aim is to apply such
knowledge toward improving organizational
effectiveness.
 The difference between Organizational
Behaviour and Management
Management Defined
The process of getting things done, effectively and
efficiently, through and with other people
Efficiency
Means doing the thing correctly; refers to the
relationship between inputs and outputs; seeks to
minimize resource costs
Effectiveness
Means doing the right things; goal attainment
 What Is Management?
Managerial Concerns
Efficiency
Doing things right
Getting the most
output for the least
inputs
Effectiveness
Doing the right
things
Attaining
organizational goals
Effectiveness and Efficiency in
Management
What
What Managers
Managers Do
Do
Managers(orAdministrators)
Individualswhoachievegoalsthroughotherpeople

Managerial
ManagerialActivities
Activities
Make
Makedecisions
decisions
Allocate
Allocateresources
resources
Direct
Directactivities
activitiesofofothers
othersto
to
attain
attaingoals
goals
Where
Where Managers
Managers Work
Work
Organization
Aconsciouslycoordinatedsocialunit,composedoftwoor
morepeople,thatfunctionsonarelativelycontinuousbasisto
achieveacommongoalorsetofgoals
Organization
Asystematicarrangementofpeoplebroughttogether
toaccomplishsomespecificpurpose;appliestoall
organizationsforprofitaswellasnotforprofit
organizations.
Wheremanagerswork(manage)
Commoncharacteristics
Goals
Structure
People
Management
Management Functions
Functions

Planning
Planning Organizing
Organizing

Management
Management
Functions
Functions

Controlling
Controlling Leading
Leading
Management
Management Functions
Functions (contd)
(contd)
Planning
A process that includes defining
goals, establishing strategy, and
developing plans to coordinate
activities
Management
Management Functions
Functions (contd)
(contd)
Organizing
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
Management
Management Functions
Functions (contd)
(contd)
Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts
Management
Management Functions
Functions (contd)
(contd)
Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations
 Mintzbergs
Mintzbergs Managerial
Managerial Roles
Roles

Source:AdaptedfromTheNatureofManagerialWorkbyH.Mintzberg.Copyright1973byH. EXHIBIT11
EXHIBIT11
Mintzberg.ReprintedbypermissionofPearsonEducation.
 Mintzbergs
Mintzbergs Managerial
Managerial Roles
Roles (contd)
(contd)

Source:AdaptedfromTheNatureofManagerialWorkbyH.Mintzberg.Copyright1973byH. EXHIBIT11(contd)
Mintzberg.ReprintedbypermissionofPearsonEducation.
EXHIBIT11(contd)
 Mintzbergs
Mintzbergs Managerial
Managerial Roles
Roles (contd)
(contd)

Source:AdaptedfromTheNatureofManagerialWorkbyH.Mintzberg.Copyright1973byH. EXHIBIT11(contd)
Mintzberg.ReprintedbypermissionofPearsonEducation.
EXHIBIT11(contd)
Management
Management Skills
Skills
TechnicalSkills
Theabilitytoapplyspecialized
knowledgeorexpertise
HumanSkills
Theabilitytoworkwith,understand,
andmotivateotherpeople,both
individuallyandingroups

ConceptualSkills
Thementalabilitytoanalyzeand
diagnosecomplexsituations
Managerial Levels
 Identifying Managers
Firstlinemanagers
Supervisorsresponsiblefordirectingthedaytoday
activitiesofoperativeemployees
Middlemanagers
Individualsatlevelsofmanagementbetweenthe
firstlinemanagerandtopmanagement
Topmanagers
Individualswhoareresponsibleformaking
decisionsaboutthedirectionoftheorganizationand
establishingpoliciesthataffectallorganizational
members
Effective
Effective Versus
Versus Successful
Successful Managerial
ManagerialActivities
Activities
(Luthans)
(Luthans)

1.
1. Traditional
TraditionalManagement
Management
Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
2.
2. Communication
Communication
Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
3.
3. Human
HumanResource
ResourceManagement
Management
Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,
and
andtraining
training
4.
4. Networking
Networking
Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others
 Entering Organizational Behaviour
Why Do We Study OB?
To learn about yourself and others
To understand how the many organizations
you encounter work.
To become familiar with team work
To help you think about the people issues
faced by managers and entrepreneurs
 Focal Points of OB

Jobs
Work
Absenteeism
Employment turnover
Productivity
Human performance
Management
 What Is an Organization?

A consciously coordinated social unit:

composed of a group of people
functioning on a relatively continuous basis
to achieve a common goal or set of goals.
 The Building Blocks of OB

Psychology
Sociology
Social Psychology
Anthropology
Political Science
 The Rigour of OB

OB Looks at Consistencies
What is common about behaviour, and helps
predictability?
OB Looks Beyond Common Sense
Systematic study, based on scientific evidence
OB Has Few Absolutes
OB Takes a Contingency Approach
Considers behaviour in context
 Exhibit 1-2
Research Methods in OB

Source:J.R.Schermerhorn,J.G.Hunt,andR.N.Osborn,OrganizationalBehaviour,9thEdition,2005,p.4.Copyright2005JohnWiley&Sons,Inc.
ReprintedwiththepermissionofJohnWiley&Sons,Inc.
 OB Offers Insights Into:
Improving quality and
productivity
Customer service and building
a customer-responsive culture
Developing people skills

1-27
 OB Aids in Dealing With:

Stimulating Innovation and

Change
Increasing temporariness in the
workplace
Helping employees balance work-
life conflicts
Improving ethical behavior
1-28
 How Will Knowing OB Make a
Difference?
For Managers
Knowing organizational behaviour can help you
manage well and makes for better corporations.
Managing people well leads to greater
organizational commitment.
Finally, managing well may improve
organizational citizenship.
 Implications for Managers
OB helps with:
Insights to improve people skills
Valuing of workforce diversity
Empowering people and creating a positive
work environment
Dealing with labor shortages
Coping in a world of temporariness
Creating an ethically healthy work
environment

1-30
 How Will Knowing OB Make a
Difference?
For Individuals
What if Im not going to work in a large organization?
The theories generally apply to organizations of any
size.
What if I dont want to be a manager?
To some extent, the roles of managers and employees
are becoming blurred in many organizations.
While self-employed individuals often do not act as
managers, they certainly interact with other
individuals and organizations as part of their work.
 Bottom Line: OB Is For Everyone

Organizational behaviour is not just for managers.

The roles of managers and employees are becoming
blurred in many organizations.
Managers are increasingly asking employees to share in
their decision-making processes rather than simply follow
orders.
OB applies equally well to all situations in which you
interact with others: on the basketball court, at the
grocery store, in school, or in church.
 Contributing Disciplines to the OB
1-33
Field
Micro:
The
Individual

Macro:
Groups &
Organizations
Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB
Field
Field
Psychology
Thesciencethatseekstomeasure,explain,andsometimes
changethebehaviorofhumansandotheranimals

EXHIBIT13(contd)
EXHIBIT13(contd)
Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field (contd)
(contd)

Sociology
Thestudyofpeopleinrelationtotheirfellowhumanbeings

EXHIBIT13(contd)
EXHIBIT13(contd)
Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field (contd)
(contd)

SocialPsychology
Anareawithinpsychologythatblendsconceptsfrompsychology
andsociologyandthatfocusesontheinfluenceofpeopleonone
another

EXHIBIT13(contd)
EXHIBIT13(contd)
Contributing
Contributing Disciplines
Disciplines to
to the
the OB
OB Field
Field (contd)
(contd)

Anthropology
Thestudyofsocietiestolearnabouthumanbeingsandtheir
activities

EXHIBIT13(contd)
EXHIBIT13(contd)
 Complementing Intuition with
Systematic Study
Intuition: the gut feeling explanation of
behavior.
Systematic study improves ability to
accurately predict behavior.
Assumes behavior is not random.
Fundamental consistencies underlie behavior.
These can be identified and modified to reflect
individual differences.
1-39
 Systematic Study
Examines relationships.
Attempts to attribute causes and effects.
Bases conclusions on scientific
evidence:
On data gathered under controlled
conditions.
Data is measured and interpreted in a
reasonably rigorous manner.
 Evidence-Based Management

Complementssystematicstudy.
Basesdecisionsonthebestavailable
scientificevidence.
Forcesmanagerstobecomemore
scientificintheirthinking.
There
There Are
Are Few
Few Absolutes
Absolutes in
in OB
OB

Contingencyvariables:ItDepends!
Situationalfactorsthatmakethemainrelationship
betweentwovariableschangee.g.,therelationship
mayholdforoneconditionbutnotanother

In Country1 x Mayberelatedto y
In Country2 x MayNOTberelatedto y
 Few Absolutes in OB

Impossible to
make simple
and accurate
generalizations
Human beings
are complex
and diverse
OB concepts
must reflect
situational
conditions:
contingency
variables
 Few Absolutes in OB

1-44
 Challenges and Opportunities for OB
The workplace is contains a wide mix of cultures,
races, ethnic groups, genders and ages
Employees have to learn to cope with rapid change
due to global competition
Corporate loyalty has decreased due to corporate
downsizing and use of temp workers
Managers can benefit from OB theory and concepts

1-45
 Challenges and Opportunities for OB
1-46

Responding to Economic Pressures

Responding to Globalization
Managing Workplace Diversity
Improving Customer Service
Improving People Skills
Stimulating Innovation and Change
Coping with Temporariness
Working in Networked Organizations
Helping Employees with Work-Life Conflicts
Improving Ethical Behavior
 Responding to Economic Pressures
1-47

Effective management is especially important

during tough economic times.
Employees look to their managers to provide
security during the instability of a recession.
 Responding to Globalization
Increased foreign assignments
Differing needs and aspirations in
workforce
Working with people from
different cultures
Domestic motivational techniques
and managerial styles may not work
Overseeing movement of jobs to
countries with low-cost labor

1-48
 Managing Workforce Diversity
Workforce diversity:
organizations are
becoming a more
heterogeneous mix of
people in terms of gender,
age, race, ethnicity, and
sexual orientation

1-49
 Diversity Implications
Managers have to shift their
philosophy from treating
everyone alike to recognizing
differences and responding to
those differences in ways that
ensure employee retention
and greater productivity
while, at the same time, not
discriminating.

1-50
 Improving Customer Service & People Skills
1-51

The majority of
employees in
developed nations
work in service
jobs and they must
know how to please
their customers.
People skills are
essential to succeed
in todays
organizations.
 Stimulating Innovation and Change
1-52

Flexibility
Quality Improvement
Staying Competitive
 Temporariness
1-53

Jobs are constantly changing

Skills need to be updated for
workers to stay on target
Workers need to be able to
deal with change
Employees need to be able
to cope with flexibility,
spontaneity and
unpredictability
 Working in Networked Organizations
1-54

Managers must
adapt their skills
and
communication
styles to succeed
in an online
environment
 Helping Employees handle work-life conflict
1-55

The line between work and

non work has blurred and
managers are increasingly
dealing with conflicts that
arise between work and life
away from work.
 Thinking Positive
1-56

Creating a positive work environment can be a

competitive advantage
Positive Organizational Scholarship (Positive
OB):
Examines how organizations develop human
strengths, foster vitality and resilience, and unlock
potential.
Focus is on employee strengths, not their weaknesses.
 Helping Employees handle work-life conflict
1-57

The line between work and

non work has blurred and
managers are increasingly
dealing with conflicts that
arise between work and life
away from work.
 Exhibit 1-4
Basic OB Model

Organization systems level

Group level

Individual level
 Three Levels of OB Analysis

Chapters 14 - 16

Chapters 8 - 13

Chapters 2 - 7

Plan
Plan of
of the
the Book
Book

1-59
Basic
Basic OB
OB Model,
Model, Stage
Stage II
Model
Anabstractionofreality
Asimplifiedrepresentationof
somerealworldphenomenon

EXHIBIT16
EXHIBIT16
The
The Dependent
Dependent Variables
Variables
DependentVariable
Aresponsethatisaffectedbyanindependentvariable(what
organizationalbehaviorresearcherstrytounderstand)

x
The
The Dependent
Dependent Variables
Variables (contd)
(contd)

Productivity
A performance measure that
includes effectiveness and efficiency

Effectiveness
Achievementofgoals

Efficiency
Meetinggoalsatalowcost
The
The Dependent
Dependent Variables
Variables (contd)
(contd)

Absenteeism
Thefailuretoreporttowork

Turnover
Thevoluntaryandinvoluntary
permanentwithdrawalfroman
organization
The
The Dependent
Dependent Variables
Variables (contd)
(contd)

DeviantWorkplaceBehavior
Voluntarybehaviorthatviolatessignificant
organizationalnormsandtherebythreatens
thewellbeingoftheorganizationand/or
anyofitsmembers
The
The Dependent
Dependent Variables
Variables (contd)
(contd)

OrganizationalCitizenshipBehavior
(OCB)
Discretionarybehaviorthatisnotpartof
anemployeesformaljobrequirements,but
thatneverthelesspromotestheeffective
functioningoftheorganization
 The
The Dependent
Dependent Variables
Variables (contd)
(contd)

JobSatisfaction
Ageneralattitude(notabehavior)towardonesjob;apositive
feelingofone'sjobresultingfromanevaluationofits
characteristics
 The Independent Variables

Independent
Independent
Variables
Variables

IndividualLevel GroupLevel
GroupLevel Organization
Organization
IndividualLevel Variables:
Variables:ability, Variables: SystemLevel
SystemLevel
Variables:ability, Teamwork,
IQ,personality,etc Teamwork, Variables:org
Variables:org
IQ,personality,etc leadership,etc
leadership,etc culture,HR
culture,HR
 Basic OB
Model,
Stage II

EXHIBIT17
EXHIBIT17
 Todays Challenges
in the Workplace
Challenges at the Individual Level
Individual Differences
Job Satisfaction
Motivation
Empowerment
Behaving Ethically
 Todays Challenges
in the Workplace
Challenges at the Group Level
Working With Others
Workforce Diversity
 Todays Challenges
in the Workplace
Challenges at the Organizational Level
Productivity
Developing Effective Employees
Putting People First
Global Competition
Managing and Working in a Multicultural World
 Todays Challenges
in the Workplace
Challenges at the Organizational Level
Productivity
A performance measure including effectiveness and
efficiency.
Effectiveness
The achievement of goals.
Efficiency
The ratio of effective work output to the input
required to produce the work.
 Developing Effective Employees

Organizational Citizenship Behaviour (OCB)

Discretionary behaviour that is not part of an
employees formal job requirements, but that
nevertheless promotes the effective functioning
of the organization.
 Putting People First

Putting people first generates a committed

workforce and positively affects the bottom
line.
People will work harder when they feel they
have more control and say in their work.
 How to Put People First

Provide employment security.

Hire well.
Create self-managed teams.
Pay well.
Provide extensive training.
Reduce status differences.
Share information about organizational
performance.
 Managing and Working in a
Multicultural World
Managers and employees must become
capable of working with people from different
cultures:
Multinational corporations are developing
operations worldwide.
Companies are developing joint ventures with
foreign partners.
Workers are pursuing job opportunities across
national borders.
 Summary and Implications

1. What is organizational behaviour?

OB is a field of study that investigates the impact
that individuals, groups, and structure have on
behaviour within an organization.
2. Isnt organizational behaviour common sense? Or
just like psychology?
OB is built on contributions from a number of
behavioural disciplines, including psychology,
sociology, social psychology, anthropology, and
political science. It goes beyond common sense.
 Summary and Implications

3. How does knowing about organizational behaviour

make work and life more understandable?
OB helps people manage well, and managing well
can lead to greater organizational commitment by
employees.
4. What challenges do managers and employees face in
todays workplace?
Each level of analysisthe individual, the group,
and the organizationpresents challenges.
 Keep in Mind
OBs goal is to understand and predict human
behavior in organizations.
Fundamental consistencies underlie behavior.
It is more important than ever to learn OB
concepts.
Both managers and employees must learn to cope
with temporariness.

1-79
 OB at Work

Chapter 1, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 1-
80
Copyright 2007 Pearson Education Canada
 For Review
1. Define organizational behaviour.
2. What is an organization? Is the family unit an organization? Explain.
3. Behaviour is generally predictable, so there is no need to formally
study OB. Do you agree or disagree with this statement? Why?
4. What does it mean to say that OB takes a contingency approach in its
analysis of behaviour?
5. What are the three levels of analysis in our OB model? Are they
related? If so, how?
6. What are some of the challenges and opportunities that managers face
in todays workplace?
7. Why is job satisfaction an important consideration for OB?
8. What are effectiveness and efficiency, and how are they related to
OB?
 For Critical Thinking

1. OB is for everyone. Build an argument to support this

statement.
2. Why do you think the subject of OB might be criticized as
being only common sense, when we would rarely hear such
a criticism of a course in physics or statistics? Do you think
this criticism of OB is fair?
3. On a scale of 1 to 10 measuring the sophistication of a
scientific discipline in predicting phenomena, mathematical
physics would probably be a 10. Where do you think OB
would fall on the scale? Why?
4. Can empowerment lead to greater job satisfaction?
 Learning About Yourself Exercise
1. Taking initiative
2. Goal setting
3. Delegating effectively
4. Personal productivity and
motivation
5. Motivating others
6. Time and stress management
7. Planning
8. Organizing
9. Controlling
10. Receiving and organizing
information
11. Evaluating routine information
12. Responding to routine information
13. Understanding yourself and others
14. Interpersonal communication
15. Developing subordinates
16. Team building
17. Participative decision making
18. Conflict management
19. Living with change
20. Creative thinking
21. Managing change
22. Building and maintaining a power
base
23. Negotiating agreement and
commitment
24. Negotiating and selling ideas
 Learning About Yourself
Scoring Key

Director: 1, 2, 3 Mentor: 13, 14, 15

Producer: 4, 5, 6 Facilitator: 16, 17, 18
Coordinator: 7, 8, 9 Innovator: 19, 20, 21
Monitor: 10, 11, 12 Broker: 22, 23, 24

Source:CreatedbasedonmaterialfromR.E.Quinn,S.R.Faerman,M.P.Thompson,andM.R.McGrath,BecomingAMasterManager:ACompetency
Framework(NewYork:JohnWiley&Sons,Inc.1990),Chapter1.
 Breakout Group Exercises
Form small groups to discuss the following topics:
1. Consider a group situation in which you have worked. To what extent
did the group rely on the technical skills of the group members vs. their
interpersonal skills? Which skills seemed most important in helping the
group function well?

2. Identify some examples of worst jobs. What conditions of these jobs

made them unpleasant? To what extent were these conditions related to
behaviours of individuals?

3. Develop a list of organizational puzzles, that is, behaviour youve

observed in organizations that seemed to make little sense. As the term
progresses, see if you can begin to explain these puzzles, using your
knowledge of OB.