Chapter 1

Introduction to
Organizational
Behavior
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OB studies what
people do in an
organization and
how that
behavior affects
the performance
of the
organization

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 The Field of Organizational
Behavior
Organizational Behavior studies the
influence that individuals, groups
and structure have on behavior
within organizations.

Its chief goal is to apply that

knowledge toward improving an
organization’s effectiveness.

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 Focal Points of OB

•Jobs
•Work
•Absenteeism
•Employment turnover
•Productivity
•Human performance
•Management

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 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.
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 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
Copyright ©rigorous manner.
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 Evidence-Based
Management
• Complements
systematic study.
• Bases decisions on
the best available
scientific evidence.
• Forces managers to
become more
scientific in their
thinking.
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 Contributing Disciplines
to the OB Field

Micro:
Psychology
The
Individual
Social Psychology

Sociology
Macro:
Groups &
Organizations Anthropology

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 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
Condition Behavior
Input “A”
“C” “B”

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 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
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 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-
costas Prentice
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 Managing Workforce
Diversity

Workforce
diversity:
organizations are
becoming a more
heterogeneous mix of
people in terms of
gender, age,
race,culture and
ethnicity.

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 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.”
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 OB Offers Insights Into:

• Improving quality and

productivity
• Customer service and
building a customer-
responsive culture
• Developing people
skills

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 OB helps in Dealing With:
• Stimulating Innovation
and Change
• Increasing
“temporariness” in the
workplace
• Helping employees
balance work-life
conflicts
• Improving ethical
behavior
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 Thinking Positive

• 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.
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 Three Levels of OB
Analysis

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 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

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 Keep in Mind…

• OB’s 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.
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 Organizational
Culture

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• Culture: is the characteristics of a
particular group of people, defined by
everything from language, religion,
cuisine, social habits, music and arts.
• Organizational Culture: is the set of
values, norms, guiding beliefs and
understandings that is shared by
members of org’n.
• OC is totaly of customs and traditions
shared by the members of the org’n.

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• Subculture: Reflect the common
problems, goals, and experiences of a
team or department. Different
departments may have their own
norms.

• Culture strength is the degree of

agreement among members of an
organization about specific values

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 Emergence of Org’l
Culture
• Organizational Culture generally
begins with a founder or early leader
who articulates and implements
particular ideas and values as a
vision, philosophy or business
strategy.
• When these ideas and values lead to
success, then they become
institutionalized.
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 What Does Culture Do for
Org’n
• Internal integration for members
• Adapt to external environment
• Employee decision-making
• It draws general picture of Org’n

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 Ethical Values and Social
Responsibility

• Ethics; is the code of moral principles

and values that governs the behaviour
of a person or group with respect to
what is right or wrong.

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 Managerial Ethics and
Social
Responsibility
Managerial Ethics : are
principles that guide the
decisions and behaviour of
managers with regard to whether
they are right or wrong.

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 How Leaders Shape
Culture and Ethics
• Value-Based Leadership Formal
Structure and Systems Structure
• Disclosure Mechanisms
• Code of Ethics
• Training Programs
• Managers play key role in providing
leadership and examples of ethical
behavior
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 The Organizational Reward
System

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• Organizational Reward System
concerned with the selection of the
types of rewards to be to used by the
organization.

• Organizational Rewards :Rewards that

result from employment with the
organization; includes all types of
rewards, both intrinsic and extrinsic.

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 Types of Rewards
• Intrinsic Rewards : Rewards internal
to the individual and normally derived
from involvement in certain activities
or task.

• Extrinsic Rewards: Rewards that are

controlled and distributed directly by
the organization and are of a tangible
nature.
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• These rewards are almost always
determined by organizational
membership and seniority; they
include
 Paid vacations
 Insurance plans

 Paid holidays
 Other rewards, such as promotion,
can and should be related to
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 Opportunities for promotion may
occur only rarely When available,
higher positions may be filled
 On basis of seniority
 By someone outside the organization

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 Job satisfaction and
Rewards

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 Compensation Policies
Compensation must deal with following
issues:
• Minimum and maximum level of pay
• General relationships among levels of
pay
• Division of total compensation dollar

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 ORGANIZATION must also make
decisions concerning
• How much money will go into pay
increases for the next years
• Who will recommend them
• How raises will generally be
determined

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 Consequences of Pay
Dissatisfaction

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 The Role of HR Manager in
the Reward System
• Role of human resource manager in
overall organizational reward system
is to assist in its design and to
administer the system

• Administering the system – Carries

responsibility of ensuring that system
is fair to all employees and that it is
clearly communicated to all
employees
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 Organizational Design

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 LINE & STAFF Organisation

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 Divisional Organisation

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 Project Organisation

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 Matrix Organisation

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 Perception and attribution

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 Definition
• A unique interpretation of a situation
• Perception leads people to react
differently to the same situation
• The perception in the world of
manager could be different form that
of subordinates

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 Perception.
 The process by which people select,
organize, interpret, retrieve, and respond
to information.
 Perceptual information is gathered from:
• seeing.
• Hearing.
• Touch.
• Taste.
• Smell.

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• Applied to OB an employees
perception can be thought of as a
“filter” and every employee has a
unique filter and the same situation
may cause different reactions and
behaviour
• The filter determines:
 which stimulus to notice and ignore
 Which stimulus to love or to hate

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 Perceptual selectivity
principles
Numerous stimuli are constantly confronting
us: - Noise of papers, people talking, moving
cars, phone etc

The principles can be divided into external and

internal principles
Internal – a those that are based on the individual
psychological make up
External – those arising form outside environmental
influences

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 Importance of Perception
• (i) Perception is very important in
understanding the human behaviour,
because every person perceives the world
and approaches the life problems
differently.
• (ii) If people behave on the basis of their
perception, we can predict their behaviour in
the changed circumstances by understanding
their present perception of the environment.

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• (iii) With the help of perception, the needs of
various people can be determined, because
people’s perception is influenced by their
needs.
• (iv) Perception is very important for the
manager who wants to avoid making errors
when dealing with people and events in the
work setting.

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 Attribution

• Attribution – the process through

which people explain the causes of
their own or someone else's
behaviour
• Concerned with the ways in which
people explain the behavior of others
or themselves with something else.

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• It is the process by which people draw
conclusion about the factors that
influence or make sense of another
behaviour
• It is an aspect of social perception

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 Attribution theory
• Is concerned with the relationship
between social perception and
interpersonal behaviour .
• Assumptions of attribution:
 we seek to make sense of our world
 we often attribute people’s actions either
to internal and external cause
 we do so in a fairly logical ways

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 Attribution theory cont..
• It is concerned with the “why”
question of organizational behaviour.
• Because most “causes”, “attributes”
and “whys’ are not directly
observable, the theory says that
people must depend on perception.
• The attribution theorists assume that
humans are rational and motivated to
identify and understand the causal
structure of their relevant
environment
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 Two types of attributions

• Dispositional attribution -Attributes a

persons behaviour to internal factors such as
personality traits , motivation, ability, fatigue,
effort
• Situational attribution -Attributes a persons
behavior to external factors such as equipment,
rules, social influence etc

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 Attributions errors
The fundamental attributions
error
 research has found that people tend to
ignore the powerful situational forces
when explain the behaviour of others
 People tend to attribute other behaviour
to personal factors (e.g. intelligence,
attitudes, personality) even when it is
very clear that the situation or
circumstances cause the person to
behave that way

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 Self serving bias
 People tend to present themselves
favourably – a self serving bias
 People tend to accept credit when they
are told they have succeeded
( attributing success to their ability ) yet
often attribute failure to external and
situational forces such as bad lack or
impossible staff

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 IMPRESSION
MANAGEMENT

IMPRESSION MANAGEMENT
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 Towards a definition…….

IMPRESSION
MANAGEMENT
It is a goal-directed conscious or unconscious attempt
to influence the perceptions of other people about a
person, object or event by regulating and controlling
information in social interaction.

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 First impression…….

IMPRESSION
MANAGEMENT
within three seconds of seeing a person for the first
time we decide their:
social status
politics
education
religion
sexuality
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friendliness / approachability
 first impressions: the
93% rule
55%
appearance & 38% tone,
body language pitch & pace
of your voice

7% what
you say

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 At work….
• doing a good job accounts for 10% of the
impression you give

IMPRESSION
MANAGEMENT
• 90% of the impression you give of being
capable is based on perception
– presentation of work
– presentation of self
– being seen to be ‘doing a good job’
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 IMPACT

IMPRESSION
MANAGEMENT Integrity
Manners
Personality
Appearance
Communication
Thrill
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4

Insert Figure 4.1 here

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 Two Types of Impression Management

IMPRESSION
MANAGEMENT
Constructive -- helps in the formation of self
identity
Strategic -- helps in the attainment of some
interpersonal goal

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 confidence - how?
preparation, preparation, preparation

IMPRESSION
MANAGEMENT
know your stuff – and know you know
your stuff!!
find opportunities to practice
‘presenting’ your stuff – get involved
ALWAYS be positive
NEVER be a one-track pony
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 personal brand – how?

IMPRESSION
MANAGEMENT
who you are?????
what you are?????
what are your personal / professional
ethics????
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 a winning image – how?

IMPRESSION
MANAGEMENT
appropriate
balanced
professional – not powerful
modern
clean
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 Transferable skills – how?

IMPRESSION
MANAGEMENT
Interact
get involved
ask questions
volunteer
don’t wait to be asked
don’t
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