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Chapter 1

Introduction to the field of

Organizational Behavior (OB)

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What is Organizational Behavior (OB)?

The study of how human

think, feel and behave

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What is ob?

What is an organization?

Groups of people who workinterdependently towards

some purpose

Employees?

Key features of organizations: Collective entities Collective sense of

purpose

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Why study ob?

What kind of employeesdo

organizations wish for?

What kind of colleaguesdo you

wish for?

What kind of leadersdo you

wish for?

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Why study ob?

Helps to fulfill the need to understand & predict the

world we live in

Helps to get things done in organization Provides the knowledge and tool to work with and

through people

Helps managers changing role Helps organizational bottom lines

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Objective of ob

Making an organization more

EFFECTIVE

Organizational Effectiveness:

Ultimate Dependent Variable

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Organizational effectiveness

What is organizational effectiveness?

Achievement of organizational goals?

Distortion of organizational goals: Easy goals

Abstract goals

Short term vs long term goals

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Organizational effectiveness

OrganizationalLearningPerspective

StakeholderPerspective

HPWPPerspective

OpenSystemPerspective

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1. Open system perspective

Views organizations living within an externalenvironment, thus, Open.

Organizations depend on external environment forresources and market

External environment depends on organization forproducts/services and jobs

Effectiveness: Maintaining the right fit with the changingconditions!

Also concentrate on Internal Subsystem Effectiveness Organizational efficiency

Eg.: Mass production to mass customization

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2. Organizational Learning

Perspective

Transformation from physical resources to knowledgeresources

Transformation from industrial economy to knowledge

economy

Knowledge = competitive advantage

Organization effectiveness = ability to:

acquire,

share,

use and

store valuable knowledge

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2. ORGANIZATIONAL LEARNING

PERSPECTIVE

Intellectual Capital: The Stock of the Organizational Knowledge

Human Capital:The knowledge, skills, and abilities that

employees carry around in their heads

Structural Capital:The remains of the organizationwhen human capital leaves Systems

Documentation Production line

Finished product

Relationship Capital:Value derived from anorganizations relationships with others

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2. ORGANIZATIONAL LEARNING

PERSPECTIVE

Organizational Memory: The preservation and storage of intellectual

capital (IC)

How do organizations retain IC?

Keeping good employees

Adapting employment practices to emerging workforce

expectations

Transfer knowledge to the other employee

Transfer knowledge to structural capital

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2. ORGANIZATIONAL

LEARNING PERSPECTIVE

Organizational Unlearning: Removes knowledge that no longer appropriate

Hows?Removing and replacing dysfunctional

policies,

procedures, and

routines,

attitudes,

beliefs, and

assumptions.

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Where are we know?

What are we discussing now?

PERSPECTIVE OF

ORGANIZATIONAL EFFECTIVENESS

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3. High-performance work practices

(HPWP) PERSPECTIVE

Human capital:

The knowledge, skills, and abilities that employee possess is

an important source of competitive advantage

Helps organizations realize opportunities or minimize threats

Not easily attainable or duplicated

HPWP Practices:

Employee involvement

Autonomy

Self-directed teams

Employee competence: relevant knowledge, skills and

values

Training and development investment

Link performance & skill development to rewardsPBS - OB Chapter 1 16

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4. sTakeholder perspective

Stakeholders:

Individuals, organizations and other entities that affect

and/or are affected by organizations decisions,

actions, and operations.

Internal or external

Essence: Companies must take into account how

their actions affect others

Companies must understand, manage, and satisfy

the interest of stakeholders

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4. sTakeholder perspective

Incorporates Values, Ethics and Corporate SocialResponsibility into organizational effectiveness

Values:Relatively stable, evaluative beliefs that

guide our preferences for outcomes or courses ofaction in a variety of situation

Ethics:The study of moral principles or valuesdetermine whether actions are right or wrong and

outcomes are good or bad

CSR:Organizational activities intended to benefitsociety and the environment beyond the firmsimmediate financial interests or legal obligation

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TYPES OF

INDIVIDUAL BEHAVIOR

Types of Individual

Behavior =Individual-level

DependentVariable

Organizational

Effectiveness =Ultimate

DependentVariable

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TYPES OF

INDIVIDUAL BEHAVIOR

TASK PERFORMANCE

ORGANIZATIONALCITIZENSHIP

COUNTERPRODUCTIVE WORKBEHAVIORS

JOINING AND STAYINGWITH THE

ORGANIZATION

MAINTAININGATTENDANCE

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TYPES OF

INDIVIDUAL BEHAVIOR

1. Task Performance:

Goals directed behavior that supports organizational

objectives

Transform raw materials into goods or services orsupport and maintain the technical activities

2. Organizational Citizenship:

OCB-Various forms of cooperation and helpfulness to

others that support organizations social andpsychological context

Beyond task performance

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TYPES OF

INDIVIDUAL BEHAVIOR

3. Counterproductive Work Behavior

On-the-darkside workplace behavior

Voluntary behavior that have the potential to directly or

indirectly harm the organization: Abuse of others

Threats

Work avoidance

Work sabotage Overt acts

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TYPES OF

INDIVIDUAL BEHAVIOR

4. Joining and Staying with the Organization

Not only attracting but retaining talented people

A third or half of company employees say they would

change companies if offered a comparable job

5. Maintaining Work attendance

Taking time off is a way to temporarily withdraw from

stressful or dissatisfying conditions

Employees admit taking sick leave when they are not

genuinely ill

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Comtemporary issues for

organizations

IncreasingWorkforceDiversity

EmergingEmployeeRelationships

Globalization

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1. Globalization

Economic, social and cultural connectivity with

people in other parts of the world

When an organization actively participate in other

countries and cultures

Reasons for going global:

Larger markets,

lower costs, greater access to knowledge and innovation

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Increase workforce diversity

Surface-level

Diversity

Cultural

Age Gender

Abilities

Religion

Deep-levelDiversity

Personalities

Beliefs Values

Attitudes

Point to ponder: Is diversity a good thing?

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Emerging employment

relationships

Working hours

Work-life balance

Virtual work: telecommuting/teleworking

Point to Ponder: What is your opinion?

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Anchors of ob knowledge

The principles on which OB knowledge is developed andrefined.In other words, how do we understand OB?

1. The Multidisciplinary Anchor

OB should develop from knowledge in other discipline

E.g.: Psychology, communication & language, sociology, etc.

2. The Systematic Research Anchor

Involved systematic research involving:

Forming research question

Data collection & analysis

Hypothesis testing

Result: evident-based management (making decisionsbased on research & evidence)

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Anchors of ob knowledge

3. The Contingency Anchor

Different situations and different solutions

There is no one best way

4. The Multiple Level of Analysis Anchor

Individual: Personality, attitudes, values, etc.

Teams: Communication, dynamics, conflict, etc.

Organization: Environment

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Next week

1. Rubrics

2. Case Studies

3. Class Representatives

4. Human Governance

5. Individual Behavior and

ProcessesPBS - OB Chapter 1 30