MGT 321ORGANIZATIONAL

BEHAVIOR

PN. INTAN LIANA SUHAIME

INTRODUCTION

Definition of ORGANIZATIONAL BEHAVIOR (OB):A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. (Robbins, 2005)

REPLACING INTUITION WITH SYSTEMATIC STUDY

Since earliest years you have watched the others of actions & have attempted to interpret what you see.

You are “READING” people

You watch the action and try to explain to yourself why?

Unfortunately, your casual or commonsense approach lead you to erroneous prediction.

Looking at relationships, attempting to attribute causes and effects, and

drawing conclusions based on scientific evidence.

That why you study OB to replace your intuitive opinions to more systematic approach.

What is ORGANIZATION?

A consciously coordinated social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.

Challenges and Opportunities in OB

1. Responding to globalization2. Managing workforce diversity3. Improving quality and productivity4. Improving customer service5. Empowering people

(Robbins, p: 15-25)

Cont..

Responding to globalization Increased foreign assignment Working with people from different culture Overseeing movement of jobs to countries with low-

cost labor Managing workforce diversity

Gender, race, national origin, disability, age, religion etc (communication problem, customs, holiday

Embracing diversity – cultural values, lifestyle preference, work style

Cont..

Improving Quality and Productivity Quality Management (QM): the constant attainment

of customer satisfaction through the continuous improvement of all organizational processes.

Improving Customer Service Majority workforce in developed countries working

in service jobs. FedEx, American Express, KFC, MCD etc – e.g.

answer phone courteously, keep smiling. High interaction with customers: should know how

to please the customers.

Cont..

Empowering people Marriot, W.L. Gore, national Westminster Bank –

employees are called associates. Current Practice: Decision making is pushing down

to the operating level. Worker operate largely without bosses. Putting

employees in charge of what they do, manager learn how to give control, & employees learn how to take responsibilities.

Empowerment in changing leadership style, power relationship

Goals of Studying OB

Describe: systematically- how people behave under a variety conditions.

Understand: why do people behave as they do

Predict : which employee might be productive or might be disruptive

Control : some human activity at work

Key Elements of OB

PEOPLE

ENVIRONMENT

TECHNOLOGY STRUCTURE

Key Elements of OB (cont..)

People • Individual • Groups

Environment• Government• Competition• Society

Structure • Jobs • Relationships

Technology• Internet• Machinery• Computer software & hardware

Fundamental Concept of OB

NATURE OF ORGANIZATION

Fundamental Concept of OB

Nature of the People

1. INDIVIDUAL DIFFERENCES

Each person is different from others Called “Law of individual differences” Manager must treat them differently

as a different person to get the highest level of motivation among the workers.

Nature of the People (cont..)

2. PERCEPTIONPeople have a unique way to see,

organize and interpret thingsPeople look at the world differently for

variety reasons:-Different personalities-Different needs-Past experience-Social surrounding

3. WHOLE PERSON:Person cannot separate from his/ her

skills, knowledge….etc. – inseparable from their life at home.

Emotional conditions are not separated from physical conditions

People function as total human beings

Nature of the People (cont..)

4. MOTIVATED BEHAVIOR:Behavior in a person is caused by

certain reasons / causes.The action taken by individual- to fulfill

his/her current needs and wants.Motivation is an essential element to

the successful operation of an organization.

Nature of the People (cont..)

5. DESIRE OF INVOLVEMENT: People wish to feel good about themselves Believe in someone capabilities to perform task.

6. VALUE OF THE PERSON: Human want to treated with respect and dignity Every job- people who do it with their unique

aspirations and abilities,- should earn the respect and recognition by others

5. DESIRE OF INVOLVEMENT: People wish to feel good about themselves Believe in someone capabilities to perform task.

6. VALUE OF THE PERSON: Human want to treated with respect and dignity Every job- people who do it with their unique

aspirations and abilities,- should earn the respect and recognition by others

Nature of the People (cont..)

Fundamental Concept of OB

Nature of Organization

1. SOCIAL SYSYTEM: Activities in organization, control by social

laws and psychological laws There are formal and informal social

system Dynamic, not static.

2. MUTUAL INTEREST: Organization need people, people need

organization Mutual interaction between people and

organization will lead to both being able to achieve what we aim for our own.

1. SOCIAL SYSYTEM: Activities in organization, control by social

laws and psychological laws There are formal and informal social

system Dynamic, not static.

2. MUTUAL INTEREST: Organization need people, people need

organization Mutual interaction between people and

organization will lead to both being able to achieve what we aim for our own.

Evolution of OB1. The Human Relations Movement (1930s)- Workers union activities (CB) led the managers

looking for new ways to handle employees: improve working conditions

- Behavioral scientists

2. The Total Quality Management Movement (TQM)• Organization dedicated to training, continuous improvement, customer satisfaction • TQM: products & services quality cant continuously improved without participation of every employees

3. The Internet Revolution - Modern technology has changed the way managers operate - recognition relationship and social interaction between managers and their employees

QUICK REVIEW

1. What is organizational Behaviour?

2. Explain in details the core elements of OB.

3. What is organization? Is the family/ class unit as organization?

4. What are effectiveness and efficiency? How are they related to OB?