Organizational Behavior Notes

5/7/13 Organizational Behavior notes
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OrganizationalBehavior-MGT502 VU
ORGANIZATIONALBEHAVIOR
Lesson1
OVERVIEWOFCOURSE
This subject/course is designed to teach the basic language of organizational behavior to diverse
audience/students, including those who are studying this as a supporting subject for their bachelor
degree program. This course is designed to provide you the foundations of organizational behavior
whetheryouintendtoworkinanyfieldofinterest.
Organizationalbehavioroffersbothchallengesandopportunitiesformanagers.Itrecognizesdifferences
andhelpsmanagerstoseethevalueofworkforcediversityandpracticesthatmayneedtobechanged
when managing in different countries. It can help improve quality and employee productivity by
showing managers how to empower their people as well as how to design and implement change
programs.Itoffersspecificinsightstoimproveamanagerspeopleskills.Intimesofrapidandongoing

MGT-502
CopyrightVirtualUniversityofPakistan
1
programs.Itoffersspecificinsightstoimproveamanagerspeopleskills.Intimesofrapidandongoing
change,facedbymostmanagerstoday,OBcanhelpmanagerscopeinaworldoftemporarinessand
learn ways to stimulate innovation. Finally, OB can offer managers guidance in creating an ethically
healthyworkclimate.
Managersneedtodeveloptheirinterpersonalorpeopleskillsiftheyaregoingtobeeffectiveintheir
jobs. Organizational behavior (OB) is a field of study that investigates the impact that individuals,
groups,andstructurehaveonbehaviorwithinanorganization,andthenappliesthatknowledgetomake
organizationsworkmoreeffectively.Specifically,OBfocusesonhowtoimproveproductivity,reduce
absenteeismandturnover,andincreaseemployeecitizenshipandjobsatisfaction.
OB studies three determinants of behavior in organizations: individuals, groups, and structure. OB
appliestheknowledgegainedaboutindividuals,groups,andtheeffectofstructureonbehaviorinorder
tomakeorganizationsworkmoreeffectively.OBisconcernedwiththestudyofwhatpeopledoinan
organization and how that behavior affects the performance of the organization. There is increasing
agreement as to the components of OB, but there is still considerable debate as to the relative
importance of each: motivation, leader behavior and power, interpersonal communication, group
structureandprocesses,learning,attitudedevelopmentandperception,changeprocesses,conflict,work
design, and work stress. Organizational behavior is a developing field of study, presenting new
challengestoamanagersunderstandingofworkbehaviorandtheabilitytomanageiteffectively.This
courseaddressesthefollowingpoints:
Organizationalbehaviorstudiesthefactorsthatimpactindividualandgroupbehaviorinor-
ganizations and how organizations manage their environments. Organizational behavior
provides a set of toolstheories and conceptsto understand, analyze, describe, and
manageattitudesandbehaviorinorganizations.
Thestudyoforganizationalcanimproveandchangeindividual,group,andorganizational
behaviortoattainindividual,group,andorganizationalgoals.
Organizationalbehaviorcanbeanalyzedatthreelevels:theindividual,thegroup,andthe
organization as a whole. A full understanding must include an examination of behavioral
factorsateachlevel.
Amanagersjobistousethetoolsoforganizationalbehaviortoincreaseeffectiveness,an
organizations ability to achieve its goal. Management is the process of planning,
organizing,leading,andcontrollinganorganizationshuman,financial,material,andother
resourcestoincreaseitseffectiveness.
Managers of organizational behavior face five challenges: using information technology to enhance

creativity and organizational learning, using human resources to gain a competitive advantage,
developing an ethical organization, managing a diverse workforce, and managing organizational
behaviorinternationally.
WhatIsOrganizationalBehavior?
OrganizationalBehaviorisafieldofstudythatinvestigatestheimpactthatindividuals,
groupsandstructurehaveonbehaviorwithinorganizations,forthepurposeofapplying
suchknowledgetowardimprovinganorganizationseffectiveness.
Anorganizationisacollectionofpeoplewhoworktogethertoachieveawidevarietyofgoals,bothgoalsof
the various individuals in the organization and goals of the organization as a whole. Organizations exist to
providegoodsandservicesthatpeoplewant.Thesegoodsandservicesaretheproductsofthebehaviorsof
workers.
Organizationalbehavioristhestudyofthemanyfactorsthathaveanimpactonhowindividualsandgroups
respondtoandactinorganizationsandhoworganizationsmanagetheirenvironments.
Although many people assume that understanding human behavior in organizations is intuitive, many
commonlyheldbeliefsaboutbehaviorinorganizations,suchastheideathatahappyworkerisaproductive
worker, are either entirely false or true only in specific situations. The study of organizational behavior
providesasetoftoolsconceptsandtheoriesthathelppeopleunderstand,analyze,anddescribewhatgoes
on in organizations and why. How do the characteristics of individuals, groups, work situations, and the
organizationitselfaffecthowmembersfeelabouttheirorganization?
Theabilitytousethetoolsoforganizationalbehaviortounderstandbehaviorinorganizationsisonereasonfor
studying this subject. A second reason is to learn how to apply these concepts, theories, and techniques to
improve behavior in organizations so that individuals, groups, and organizations can achieve their goals.
Managersarechallengedtofindnewwaystomotivateandcoordinateemployeestoensurethattheirgoalsare
alignedwithorganizationalgoals.
ForcesReshapingtheProcessofManagement
An understanding of organizational behavior is important to managers, who have the responsibility of
improving organizational effectiveness, the ability of an organization to achieve goals. A goal is a desired
futureoutcomethatanorganizationseekstoachieve.
In the last 10 years, the challenges facing managers in effectively utilizing human resources and managing
2
In the last 10 years, the challenges facing managers in effectively utilizing human resources and managing
organizational behavior have increased. These challenges stem from changing forces in the technological,
global,andsocialorculturalenvironments.
Organizations can obtain a competitive advantage, a way of outperforming other organizations providing
similargoodsandservices.Theycanpursueanyorallofthefollowinggoals:increaseefficiency,increase
quality;increaseinnovationandcreativity;andincreaseresponsivenesstocustomers.
Organizationalefficiencyisincreasedbyreducingtheamountofresources,suchaspeopleorrawmaterials,
neededtoproduceaquantityofgoodsorservices.Organizationstrytofindbetterwaystoutilizeandincrease
theskillsandabilitiesoftheirworkforce.Crosstrainingworkerstoperformdifferenttasksandfindingnew
ways of organizing workers to use their skills more efficiently improve efficiency. The global competitive
challengefacingorganizationsistoinvestintheskillsoftheworkersbecausebetter-trainedworkersmake
betteruseoftechnology.Increasedcompetitionhasalsoputpressureoncompaniestoincreasethequalityof
thegoodsandservicestheyprovide.OneapproachtoincreasingqualityiscalledTotalQualityManagement
(TQM),atechniqueborrowedfromtheJapanese.TQMinvolvesawholenewphilosophyofmanagingbehav-
iorinorganizationsandincludeselementslikegivingworkerstheresponsibilityforfindingwaystodotheir
jobsmoreefficientlyandwaystoimprovequality.
KotterInternational
www.KotterInternational.com/Books
WeFocusOnKeyWaysInManagement
ChangeToHelpYouGainSuccess!

Anorganizationsethicsarerules,beliefs,andvaluesthatoutlinewaysinwhichmanagersandworkersshould
behavewhenconfrontedwithasituationthatmayhelporharmotherpeopleinsideoroutsideanorganization.
Ethical behavior enhances the well-being (the happiness, health, and prosperity) of individuals, groups,
organizations,andtheorganizationalenvironment.Ethicsestablishthegoalsandbehaviorsappropriatetothe
organization.Manyorganizationshavethegoalofmakingaprofit,tobeabletopayworkers,suppliers,and
shareholders.Ethicsspecifieswhatactionsanorganizationshouldtaketomakeaprofitandwhatlimitsshould
beputonorganizationsandtheirmanagerstopreventharm.
The challenge of managing a diverse workforce increases as organizations expand their operations
internationally.Thereareseveralissuesthatariseintheinternationalarena.First,managersmustunderstand
culturaldifferencestointeractwithworkersandassociatesinforeigncountries.Understandingthedifferences
betweennationalculturesisimportantinanyattempttomanagebehavioringlobalorganizationstoincrease
performance.
Second,themanagementfunctionsofplanning,organizing,leading,andcontrollingbecomemorecomplexin
a global environment. Planning requires coordination between managers in the home country and those
abroad.Organizing,theallocationofdecision-makingauthorityandresponsibilitybetweenheadquartersand
the foreign country is a significant function of global managers. Leading requires managers to tailor their
leadership styles to suit differences in the attitudes and values of foreign workers. Controlling involves
establishingtheevaluation,reward,andpromotionpoliciesoftheorganizationandtraininganddevelopinga
globallydiverseworkforce.
WhyDoWeStudyOB?
Followingarethereasonstostudyorganizationalbehavior:
Tolearnaboutyourselfandhowtodealwithothers
Youarepartofanorganizationnow,andwillcontinuetobeapartofvariousorganizations
Organizationsareincreasinglyexpectingindividualstobeabletoworkinteams,atleastsome
ofthetime
Someofyoumaywanttobemanagersorentrepreneurs
Theimportanceofstudyingorganizationalbehavior(OB)
OBappliestheknowledgegainedaboutindividuals,groups,andtheeffectofstructureonbehaviorin
3
ordertomakeorganizationsworkmoreeffectively.It isconcernedwiththestudyofwhatpeopledoin
anorganizationandhowthatbehavioraffectstheperformanceoftheorganization.Thereisincreasing
agreement as to the components of OB, but there is still considerable debate as to the relative
importance of each: motivation, leader behavior and power, interpersonal communication, group
structureandprocesses,learning,attitudedevelopmentandperception,changeprocesses,conflict,work
design,andworkstress.Itisalsoimportantbecauseitfocusonthefollowingareas.
OBisawayofthinking.
OBismultidisciplinary.
ThereisadistinctlyhumanisticorientationwithOB.
ThefieldofOBisperformanceoriented.
TheexternalenvironmentisseenashavingsignificantimpactonOB.
ContributingDisciplinestotheOBField
Organizationalbehaviorisanappliedbehavioralsciencethatisbuiltuponcontributionsfromanumber
of behavioral disciplines. The predominant areas are psychology, sociology, social psychology,
anthropology,andpoliticalscience.
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