Introduction to

Organisational Behaviour

What is the field of Organizational Behavior all about

It deals with human behavior in organizations; it is used as the basis for enhancing organizational
Effectiveness and individual well-being; its about systematically studying individual, group and
Organizational processes.
The fundamental assumptions of OB are:
that organizations can be made more productive while also improving the quality
of peoples work life
that there is no one best approach to studying OB
that organizations are dynamic and ever-changing

Peoples changing expectations about the desire to be engaged in their

work and the need for flexibility in work have influenced the
field of OB.
Both employers and employees benefit when they are highly engaged with
one another when they are highly committed to satisfying one
anothers interests
Helps avoid the extremely high costs of having actively disengaged workers
Employees also want a high degree of flexibility in their work arrangements
Offering flexible hours, relying on contingent workers, using compressed work
weeks, job sharing and voluntary reduced work time programs

Improving Quality & Productivity:

Todays managers understand that the success of any effort of improving quality and
productivity must include their employees. These employees will not only be a major
force in carrying out changes but increasingly will actively participate in planning
those changes.

OB is concerned with the study of what people do in an organization and how their
behaviour affects the organizations performance
OB includes the core topics of motivation, leader behaviour and power, interpersonal
communication, group structure and processes, learning, attitude development and
perception, change processes, conflict, work design and work stress
(Robin & Judge, 2009:45)

Positive Organizational Behavior concerns

itself with how organizations develop
human strength, foster vitality and
resilience and unlock potential.
It concerns itself with exploiting
employees strengths rather than
dwell on their limitations.

Ability (Slide 13)

Individual
Behavior

Learning ( Slide 10)

High Performance Employees (Slide 24)
Organizational Commitment (Slide 29)

Individual Behavior
Scientists refer to the ways in which people differ from one
another as individual differences, and such unique qualities
can have major influence on our thinking and behavior

Individual Behaviour
How does age affect productivity?
Older workers bring to their jobs their experience,
judgment and strong work ethics and commitment
to quality
BUT
They also lack flexibility and are often resistant to
change and to new technology

Individual Behaviour

Does productivity decline with age?

Speed, agility, strength and coordination decline
over time, job boredom and lack of intellectual
stimulation contribute to reduced productivity.
Do you agree?

Individual Behaviour
Social Learning
Individuals can learn by observing what happens to other
people and just by being told about something as well as
through direct experience. The ability to learn through both
observation and direct experience is called social learning
theory. Four processes are necessary:
Attention: recognize and pay attention
Retention: remember
Motor reproduction: watching must be converted to doing
Reinforcement: positive incentives or rewards are provided

Individual Behaviour
Learning any observable change in behaviour.
Positive reinforcement is a powerful tool for modifying
behaviour. By identifying and rewarding performanceenhancing behaviours, management increases the
likelihood that those behaviours will be repeated.
Although punishment eliminates undesired behaviour more
quickly, it tends to be temporary rather than permanent.
Punishment also produces unpleasant side effects, such as
lower morale and higher absenteeism or turnover. They tend
to be more resentful of the punisher.

Implication for Managers

Individual Behaviour
Ability: directly influences an employees level of
performance. Ways to achieve:
An effective selection process will improve the fit; a job
analysis will provide information about jobs currently being
done and the abilities that individuals need to perform the
jobs adequately.
Promotion and transfer decisions affecting individuals
should reflect the abilities of the employees
Fine-tuning the job to better match an employees abilities

Question

What are the two types of ability?

c/f

Answer
Ability refers to an individuals capacity to
perform the various tasks in a job.
Intellectual abilities: the capacity to do mental
activities thinking, reasoning, and problem
solving.
Physical abilities: the capacity to do tasks that
demand stamina, dexterity, and strength

Answer
Dimensions of intellectual abilities:
Number aptitude - arithmetic
Verbal comprehension - understanding
Perceptual speed identify visual similarities &
differences
Inductive reasoning logical sequence
Deductive reasoning use logic to assess
Spatial visualization space & dimension
Memory retain & recall

Answer
Dimensions of physical abilities:
Strength force
Flexibility adapt & adjust
Body coordination
Balance
Stamina

Answer

Intelligent people perform better and tend to

have more interesting jobs, they are also more
critical in evaluating their job conditions. Thus
smart people have it better, but they also
expect more.
Physical abilities are essential for certain types
of jobs, as such its essential to ensure that the
employee has those abilities.

Organizational Performance

The rise of the knowledge economy where firms rely

almost completely on their human and intellectual
capital for their competitive advantage elevated the
importance of people management still further
(Redman & Wilkinson, 2006:26).
Human Capital: human intellect, individual tacit
knowledge, skills to perform their functions, innovation
and creativity, problem solving (p29)

Organizational Performance
Human Capital: the sum of the skills, knowledge, and
general attributes of the people in an organization. It
represents capacity for todays work and potential for
tomorrows work. It encompasses not only easily
observed skills, such as those associated with
operating machinery or selling products, but also the
skills, knowledge, and capabilities of managers and
employees/associates for learning, communicating,
motivating, building trust and effectively working on
teams. It also includes basic values, beliefs, and
attitudes.
Source: Organizational Behavior: A Strategic Approach, Michael A Hitt, C. Chet Miller &
Adrienne Colella (2006:11) John Wiley, Danvers MA.

Human Capital Advantage

Influences on the attitude of different employee
groups:
Professional employees want excellent
communication about the business with good
rewards and recognition for good work.
They want to know how well they are doing, enjoy
working hard but need to get on with their boss
and want a good work-life balance (p37)

Human Capital Advantage

Front line managers want good communication
and an opportunity to be involved in decisionmaking. They show commitment if they have good
rewards, find the firm helps them achieve a worklife balance and they believe they are not stuck for
ever in their current job (p 37)
Workers value communication, want praise and
reward, the ability to discuss grievances and
personal problems and a good work-life balance
(p 37)

Bath People and Performance Model

Ability/skill, motivation/incentive and an opportunity

to participate leads to organizational commitment,
motivation and job satisfaction
(Purcell et al. 2003)
Source: Redman, T, & Wilkinson, A. (2006) Contemporary
Human Resource Management: Test and Cases, Harlow,
Prentice Hall.

What can management do to ensure high performing employees?

Everyone has strengths and weaknesses in terms of ability that make
him or her relatively superior or inferior to others in performing certain
tasks or activities.
The issues is not whether people differ, they certainly do; the issue is
knowing how people differ in abilities and using that knowledge to
increase the likelihood that an employee will perform his or her job well.

What can management do to ensure high performing employees? contd

An individuals overall abilities are essentially made up of two sets
of factors: intellectual and physical.

Implication for managers:

Ability: directly influences an employees level of performance, therefore,
management should consider:

What can management do to ensure high performing employees? contd

Ability effective selection process will improve the fit (job analysis will
highlight the abilities needed to perform adequately)
Promotion & Transfer jobs that match with individuals ability(s)
Fine-tuning fine-tune the job to better match an individuals abilities
Training provides opportunities for employees to enhance their skills

All human behavior is learned.

Discuss

Refer handout: All Human Behavior is Learned

High Involvement Management

An approach that involves carefully selecting and training
associates and giving them significant decision making
power, information, and incentive compensation. Collectively
these five aspects of high-involvement management yield
empowered workers.
(Hitt et al. 2006:16)

Organizational Commitment

Organizational commitment is a concept that has to do with the degree of commitment and
loyalty that employees exhibit toward employers/organization.
The underlying idea is that if an employee is truly committed to the goals and aims of the
organization, he or she will manifest that commitment in terms of individual work ethic,
the support of company goals and generally be dedicated to the ongoing success of the
employers business.

Sometimes referred to as affective commitment, this component of organizational commitment

seeks to measure the positive feelings that the employee feels for the business and its operations
in general. This type of commitment can come in handy when the business undergoes a stressful
period, since employees with strong emotional attachments are likely to remain with the company
and seek to develop and implement solutions that move the company back into a more desirable
position.

Continuance commitment is also an important component of organizational commitment.

Here the focus is on how strongly employees see value in continuing to remain with the
company. This often involves identifying the benefits that are enjoyed as the result of employment.
The incentives to remain may have to do with wages or salary, benefits such as an attractive
pension plan, or even intangibles like friendships that are developed within the company culture.

A third component in the concept of organizational commitment is known as normative

commitment. In this scenario, factors such as the loyalty employees feel are based on a
sense of obligation or gratefulness for the role of the company in the lives of employees.
For example, an employee may feel a commitment because the business helped to supply
funds for obtaining a degree, or feel a strong attachment or gratitude because the employer
provided a job during a period in which the individual was in dire need of a means of
earning a living.

Big Five Dimensions of Personality

The Big Five Dimensions of Personality contributes to work performance

Extraversion: tendency to seek stimulation and to enjoy the company of others; energetic,
enthusiastic, sociable
Agreeableness: tendency to be compassionate toward others; good natured, cooperative
trusting and helpful
Conscientiousness: tendency to show self-discipline, to strive for competence and
achievement; well organized, careful and self-disciplined, responsible & precise
Neuroticism: tendency to experience unpleasant emotions easily; poised, calm, composed
Openness to experience: tendency to enjoy new experiences and new ideas; imaginative, witty,
having broad interests