Chapter 1

Organizational Behavior-
An Overview
OBJECTIVES
After studying this chapter, you should
be able to:
1. Describe what managers do
2. Define organizational behavior (OB)
3. Explain the value of the systematic study of OB
LEARNING

4. Identify the contributions made by major

behavioral science disciplines to OB
5. List the major challenges and opportunities for
managers to use OB concepts
Effective
Effective Versus
Versus Successful
Successful Managerial
Managerial
Activities
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
Allocation
Allocation of
of Activities
Activities by
by Time
Time
 Enter
Enter Organizational
Organizational Behavior
Behavior

A field of study that investigates A Systematic study and

the impact that individuals, careful knowledge about
groups, and structure have on
people- as individual or
behavior within organizations, for
the purpose of applying such
as group- act within
knowledge toward improving an organization.
organization’s effectiveness
What is OB:
Nature
Nature of
of People
People (Fundamentals
(Fundamentals of
of OB)
OB)

 Individual Differences
Perception
Whole Person
Motivated Behavior
Desire to involve
Value of person
(Extracted from Organizational Behavior- Behavior at workplace by John Newstrom)
 Goals of Organizational Behavior

Describe
Understand
Predict
Control
(Extracted from Organizational Behavior- Behavior at workplace by John Newstrom)
 Forces Affecting OB

(Extracted from Organizational Behavior- Behavior at workplace by John

Newstrom)
Challenges
Challenges and
and Opportunities
Opportunities for
for OB
OB

 Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Overseeing movement of jobs to countries
with low-cost labor
 Managing Workforce Diversity
Embracing diversity
Changing demographic pattern
– Implications for managers
• Recognizing and responding to differences
Major
Major Workforce
Workforce Diversity
Diversity Categories
Categories

Gender
Gender
National
National
Disability
Disability Origin
Origin

Age
Age
Religion
Religion
Race
Race

E X H I B I T 1–4
E X H I B I T 1–4
Challenges
Challenges and
and Opportunities
Opportunities for
for OB
OB (cont’d)
(cont’d)

 Improving Quality and Productivity

 Quality management (QM)
 Process reengineering
 Responding to the Labor Shortage
 Changing work force demographics
 Fewer skilled laborers
 Early retirements and older workers
 Improving Customer Service
 Increased expectation of service quality
 Customer-responsive cultures
What
What Is
Is Quality
Quality Management?
Management?

 Intense focus on the customer satisfaction

 Concern for continuous improvement
 Improvement in the quality of everything the
organization does
 Accurate measurement
 Empowerment of employees

E X H I B I T 1–6
E X H I B I T 1–6
Challenges
Challenges and
and Opportunity
Opportunity for
for OB
OB (cont’d)
(cont’d)

 Improving people skills

 Empowering people
 Stimulating innovation and change
 Coping with “temporariness”
 Working in networked organizations
 Helping employees balance work/life conflicts
 Improving ethical behavior
 Managing people during the war on terrorism
Basic
Basic OB
OB Model,
Model, Stage
Stage II
Model
An abstraction of reality
A simplified representation of
some real-world phenomenon

E X H I B I T 1-6
E X H I B I T 1-6
The
The Dependent
Dependent Variables
Variables
Dependent Variable
A response that is affected by an independent variable (what
organizational behavior researchers try to understand)

x
The
The Dependent
Dependent Variables
Variables (cont’d)
(cont’d)

Productivity
A performance measure that includes
effectiveness and efficiency

Effectiveness
Achievement of goals

Efficiency
Meeting goals at a low cost
The
The Dependent
Dependent Variables
Variables (cont’d)
(cont’d)

Absenteeism
The failure to report to work

Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization
The
The Dependent
Dependent Variables
Variables (cont’d)
(cont’d)

Deviant Workplace Behavior

Voluntary behavior that violates
significant organizational norms and
thereby threatens the well-being of the
organization and/or any of its members
The
The Dependent
Dependent Variables
Variables (cont’d)
(cont’d)

Organizational Citizenship Behavior

(OCB)
Discretionary behavior that is not
part of an employee’s formal job
requirements, but that nevertheless
promotes the effective functioning of
the organization
 The
The Dependent
Dependent Variables
Variables (cont’d)
(cont’d)

Job Satisfaction
A general attitude (not a behavior) toward one’s job; a
positive feeling of one's job resulting from an evaluation of
its characteristics
The
The Independent
Independent Variables
Variables
Independent Variable
The presumed cause of some change in the dependent
variable; major determinants of a dependent variable

Independent
Independent
Variables
VariablesCan
CanBe
Be

Individual-Level Group-Level Organization

Organization
Individual-Level Group-Level System-Level
Variables
Variables Variables
Variables System-Level
Variables
Variables
 Basic OB
Model, Stage
II

E X H I B I T 1-7
E X H I B I T 1-7