Introduction to Organization Behavior

1. ORGANIZATIONAL BEHAVIOR

2. O B J E C T I V E S
AFTER STUDYING THIS CHAPTER AND
LISTENING TO MY LECTUER,I HOPE THTAT
YOU WILL BE ABLE TO:
1. Define organizational behavior (OB).
2. Discuss the historical perspective of OB.
L E A R N I N G
3. OB as a multi Disciplinary Field
4. Describe why managers require a knowledge of OB.
5. The major challenges and opportunities for managers to
use OB concepts.
6. Knowledge Management

3. What Managers Do
Managers
Individuals who achieve goals through other people.
Managerial Activities
Managerial Activities
•Make decisions
•Make decisions
•Allocate resources
•Allocate resources
•Direct activities of others
•Direct activities of others
to attain goals
to attain goals
1–3

4. Where Managers Work

5. Enter Organizational Behavior
Organizational Behavior (OB) is the study and
application of knowledge about how people, individuals,
and groups act in organizations. It does this by taking a
system approach

6. system approach
Systematic study of behavior is a meaning to
make accurate predictions. By systematic study
we mean,
 Examining relationship.
 Cause and effects relation.
 Base our conclusion on scientific method.
Systematic study augments intuitions.

7. Historical Perspective

8.  Scientific Management.
An approach to management which emphases the
formulation of precise processes which are regarded as
the best methods to achieve work goals.

9. The Hawthorne Studies
Conducted from 1927-1932 at the Western
Electric Hawthorne Works in Chicago
Conducted by Harvard Business School Professor
Elton Mayo who examined productivity and work conditions
The studies grew out of preliminary experiments at the plant
On the effect of light on productivity
Those experiments showed no clear connection between
Productivity and the amount of illumination

10. The Studies?
Variables Affecting Productivity
1. Rest Breaks
Mayo took 6 women from the assembly line,
2. Work Hours segregated from rest of the factory and put them
3. Temperature under the eye of a supervisor who was more friendly
4. Humidity observer than a disciplinarian
 Feedback Mechanism
Throughout the series of experiments, an observer sat with the girls in the
workshop noting all that went on, keeping the girls informed about the
experiment, asking for advice and listening to their complaints.
Each experiment began by introducing various changes, each of which
was continued for a test period of four to twelve weeks.

11. Conditions and Results
Under normal conditions with a 48 hour week, including
Saturdays, and no rest pauses. The girls produced 2,400
relays a week each.
 They were then put on a piece-work for eight hours----Output went UP
 Two five minute rest pauses, morning and afternoon, were introduces for a period of
five weeks-----Output went UP once more
 The rest pauses were lengthened to ten minutes each----Output went up sharply
 Six five minute pauses were introduced, and the girls complained that their work
rhythm was broken by the frequent pauses----output fell slightly
 Return to the two rest pauses, the first with a hot meal supplied by the company free
of charge----Output went up
 The girls were dismissed at 4:30 p.m. instead of 5:00 p.m.----output went ip
 They were dismissed at 4:00 p.m.----output remain the same

12. The Results
Finally all the improvements were taken away and
the girls went back to 48 hours working with no
piece-work, rest–breaks and no free meals. This
state of affairs lasted for a period of 12 weeks.
 Output was the highest ever recorded averaging
3000 relays a week
Confused?

13. What Happened during the Experiments?
 Six individuals became a team and the team gave itself wholeheartedly
and spontaneously to co-operation in the experiment.
 They were themselves satisfied that they were working under less
pressure than ever before.
 The group had considerable amount of freedom of movement. They
were not pushed around or bossed by anyone.
 Under these conditions they established an increased sense of
responsibility and instead of discipline from higher authority being
imposed, it came from within the group.

14. Organization behavior: Past,
present and future.
 Organizational behavior is a multi-disciplined science.
 Human relation approach
 Psychology.
 Social psychology.
 Anthropology.
 Political Science.

15. Human relation approach:
The study of interaction among people with
The study of interaction among people with
the aim of developing mutually
the aim of developing mutually
beneficial outcomes
beneficial outcomes
.
 Psychology:
The systematic study of human behavior & cognitive
events.
 Social Psychology:
Is concerned with understanding behavior in a group
context.

16.  Anthropology:
Is to study the society & their culture.
 Political science:
Focuses on the behavior of individuals and groups in a political
environment.

17. Why study OB
Understanding
Organizational
Event
ORGANIZATIONAL
BEHAVIOR
RESEARCH
Influencing Predict
Organizational Organizational
Event Event

18. Challenges and
Opportunities of OB
Challenges?
Opportunities?

19. Challenges and Opportunity for OB
 Responding to Globalization
 Managing Workforce Diversity
 Improving Quality and Productivity
 Responding to the Labor Shortage
 Improving Customer Service
 Improving People Skills
 Empowering People
 Coping with “Temporariness”
 Stimulation Innovation and Change
 Helping Employees Balance Work/Life Conflicts
 Improving Ethical Behavior

20. Knowledge management
Any Structural activity that improves an organization's
capacity to acquire, share and use knowledge in ways
that improve its survival and success.
Intellectual Capital:
The sum of an organization's human capital, structural
capital and relationship capital

21.  Human Capital:
 This is the knowledge that employees possess and
generate including their skills, experience and
creativity.
 Structural Capital:
 This is the knowledge captured and retained in an
organization's system and structures. It is the
knowledge that remains after all the human capital
has gone home.
 Relationship Capital:
 This is the value derived from an organization's
relationships with customer, suppliers and other
external stakeholders.

22. Knowledge management process
 Knowledge acquisition.
 Knowledge sharing.
 Knowledge use.

23. Some Important terms
Productivity
A performance measure that includes
effectiveness and efficiency.
Effectiveness
Achievement of goals.
Efficiency
The ratio of effective
output to the input
required to achieve it.

24. Absenteeism
The failure to report to work.
Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization.

25. Job satisfaction
A general attitude toward one’s job, the difference
between the amount of reward workers receive and the
amount they believe they should receive.

26. Basic OB Model