Organizational behavior (OB) is defined as a field of study that investigates how individuals, groups and structure influence behavior within organizations in order to improve organizational effectiveness. OB draws from multiple disciplines including psychology, sociology, social psychology, and anthropology. Studying OB helps understand oneself and how to interact with others in organizational settings. It is important because it provides insight into both visible and covert aspects of how organizations function.

1. What is Organizational
Behavior?
Lecturer: Do Tien Long
09 04 51 54 46
dotienlong_mc@yahoo.com.vn
Organisational Behavior, Do Tien Long

2. 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
LEARNING
of OB.
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.Organisational Behavior, Do Tien Long

3. What Managers Do
What Managers Do
Managers (or administrators)
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
Organisational Behavior, Do Tien Long

4. Where Managers Work
Where Managers Work
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.
Organisational Behavior, Do Tien Long

5. Management Functions
Management Functions
Planning
Planning Organizing
Organizing
Management
Management
Functions
Functions
Controlling
Controlling Leading
Leading
Organisational Behavior, Do Tien Long

6. Management Functions (cont’d)
Management Functions (cont’d)
Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.
Organisational Behavior, Do Tien Long

7. Management Functions (cont’d)
Management Functions (cont’d)
Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to
be grouped, who reports to whom, and
where decisions are to be made.
Organisational Behavior, Do Tien Long

8. Management Functions (cont’d)
Management Functions (cont’d)
Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts.
Organisational Behavior, Do Tien Long

9. Management Functions (cont’d)
Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations.
Organisational Behavior, Do Tien Long

10. Mintzberg’s Managerial Roles
Mintzberg’s Managerial Roles
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1
E X H I B I T 1–1
by H. Mintzberg. Reprinted by permission of Pearson Education.
Organisational Behavior, Do Tien Long

11. Mintzberg’s Managerial Roles (cont’d)
Mintzberg’s Managerial Roles (cont’d)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1 (cont’d)
E X H I B I T 1–1 (cont’d)
by H. Mintzberg. Reprinted by permission of Pearson Education.
Organisational Behavior, Do Tien Long

12. Mintzberg’s Managerial Roles (cont’d)
Mintzberg’s Managerial Roles (cont’d)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1 (cont’d)
E X H I B I T 1–1 (cont’d)
by H. Mintzberg. Reprinted by permission of Pearson Education.
Organisational Behavior, Do Tien Long

13. Management Skills
Management Skills
Technical skills
The ability to apply specialized
knowledge or expertise.
Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.
Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
Organisational Behavior, Do Tien Long

14. Skills Needed at Different Levels
of Management
Top
management Human Conceptual
Technical
Middle
Human Conceptual
management Technical
Human ConCe
First-line ptual
Technical
management
Organisational Behavior, Do Tien Long

15. Effective Versus Successful Managerial
Effective Versus Successful Managerial
Activities (Luthans)
Activities (Luthans)
1. Traditional management
1. Traditional management
• •Decision making, planning, and controlling
Decision making, planning, and controlling
2. Communication
2. Communication
• •Exchanging routine information and processing
Exchanging routine information and processing
paperwork
paperwork
3. Human resource management
3. Human resource management
• •Motivating, disciplining, managing conflict, staffing,
Motivating, disciplining, managing conflict, staffing,
and training
and training
4. Networking
4. Networking
• •Socializing, politicking, and interacting with others
Socializing, politicking, and interacting with others
Organisational Behavior, Do Tien Long

16. Allocation of Activities by Time
Allocation of Activities by Time
Organisational Behavior, Do Tien Long

17. Willson’s managerial skills on 11
observable categories
Skills Exhibited by an Effective Manager
1. Clarifies goals and objectives for everyone involved
2. Encourage participation, upward communication, and suggestion
3. Plans and organizes for an orderly work flow
4. Has technical and administrative expertise to answer organization-related questions
5. Facilitates work though team building, training, coaching, and support
6. Provides feedback honestly and constructively
7. Keeps things moving by relying on schedules, deadlines, and helpful reminders
8. Controls details without being overbearing
9. Applies reasonable pressure for goals accomplishment
10. Empowers and delegates key duties to others while maintaining goal clarity & commitment
11. Recognizes good performance with rewards and positive reinforcement
Organisational Behavior, Do Tien Long

18. Evolution of the 21st Century Manager
- Robert Kreitner & Angelo Kinicki
Past Managers Future Managers
Primary role Order giver, privileged elite, controller Facilitator, team member, teacher, sponsor
Learning & Knowledge Periodic learning, narrow specialist Long-life learning, generalist with multiple
specialties
Compensation criteria Time, effort, rank Skills and results
Cultural orientation Monocultural, monolingual Multicultural, multilingual
Primary source of influence Formal authority Knowledge (technical and interpersonal
View of people Potential problem Primary resource
Primary com.cation pattern Vertical Multidirectional
Decision-making style Limited input for individual decisions Broad-based input for joint decisions
Ethical considerations Afterthought Forethought
Nature of interpersonal Competitive (win – lose) Cooperative (win – win)
relationships
Handling of power and key Hoard and restrict access Share and broaden access
information
Approach to change Resist Facilitate
Organisational Behavior, Do Tien Long

19. Enter Organizational Behavior
Enter Organizational Behavior
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.
Organisational Behavior, Do Tien Long

20. Complementing Intuition with
Complementing Intuition with
Systematic Study
Systematic Study
Intuition
“Gut” feelings about “why I do what I do” and “what
makes others tick”.
Systematic study
Looking at relationships, attempting to attribute
causes and effects, and drawing conclusions based
on scientific evidence.
Provides a means to predict behaviors.
Organisational Behavior, Do Tien Long

21. Influences on OB.
• Individuals
• Groups
• The organisation itself
• The environment
Organisational Behavior, Do Tien Long

22. Individuals
• Are a central feature of OB
• Are a necessary part of any behavioural set
• Bring to the organisation their personality, skills and
attributes, values, needs and expectations
• Can create conflict if their needs and the demands of
the organisation are incompatible
Organisational Behavior, Do Tien Long

23. Management and the individual
Management’s task is to integrate the individual &
the organisation, providing a working environment
that permits the satisfaction of individual needs &
attainment of organisation goals
Organisational Behavior, Do Tien Long

24. Groups
• Exist in all organisations
• Are essential to organisational working and
performance
• Comprise a range of different individuals
• Can develop their own hierarchies and leaders
Organisational Behavior, Do Tien Long

25. Groups
• Can have a major influence on behaviour and
performance of individual members
• Have their own structures and functions, role
relationships and influences and pressure
An understanding of group structure and behaviour
complements a knowledge of individual behaviour
Organisational Behavior, Do Tien Long

26. The organisation
• Individuals & groups interact within the structure
of the formal organisation
• Organisational structure is created by
management to:
- establish a relationship between individuals &
groups
- provide order and systems to direct efforts of
the organisationOrganisational Behavior, Do Tien Long activities
into goal seeking

27. The organisation
• The formal structure allows people/groups to carry
out organisational activities to achieve aims &
objectives
• Behaviour is affected by patterns of organisational
structure
Organisational Behavior, Do Tien Long

28. Environment
The environment affects the organisation through:
• technological & scientific development
• economic activity
• social & cultural influences
• government activities
Organisational Behavior, Do Tien Long

29. Environment
The effects of the operation of the organisation within
its environment are reflected in the:
• management of opportunities & risks
• successful achievement of organisational aims &
objectives
Organisational Behavior, Do Tien Long

30. Organisational Behavior, Do Tien Long

31. Contributing Disciplines to the
OB Field
Psychology
The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals.
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
Organisational Behavior, Do Tien Long

32. Contributing Disciplines to the
OB Field (cont’d)
Sociology
The study of people in relation to their fellow human beings.
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
Organisational Behavior, Do Tien Long

33. Contributing Disciplines to the OB
Field (cont’d)
Social Psychology
An area within psychology that blends concepts from psychology
and sociology and that focuses on the influence of people on one
another.
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
Organisational Behavior, Do Tien Long

34. Contributing Disciplines to the OB
Field (cont’d)
Anthropology
The study of societies to learn about human beings and their
activities.
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
Organisational Behavior, Do Tien Long

35. Behavioural science – a
multidisciplinary approach
Personality system Social system
(psychology) (Sociology)
Cultural system
(Anthropology) Political
Economics
science
Organisational Behavior, Do Tien Long

36. Why Do We Study OB?
• To learn about yourself and how to deal with
others
• You are part of an organization now, and will
continue to be a part of various organizations
• Organizations are increasingly expecting
individuals to be able to work in teams, at least
some of the time
• Some of you may want to be managers or
entrepreneurs
Organisational Behavior, Do Tien Long

37. The importance of the study of
organizational behaviour
• In its concern for the way people behave in an
organizational context, organizational behaviour
can be regarded as the key to the whole area of
management
• The more technical a manager’s training, the
more important organisational behaviour becomes
Organisational Behavior, Do Tien Long

38. The organisational iceberg
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-
Western Publishing © (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning:
www.thomsonrights.com. Fax 800 730 2215.
Organisational Behavior, Do Tien Long

39. The organisational iceberg
Formal (overt) aspects
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western
Publishing © (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning:
www.thomsonrights.com. Fax 800 730 2215.
Organisational Behavior, Do Tien Long

40. The organisational iceberg
Behavioural (covert) aspects
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western
Publishing © (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning:
www.thomsonrights.com. Fax 800 730 2215.
Organisational Behavior, Do Tien Long

41. The organisational iceberg
Formal (overt) aspects
• Customers
• Technology
• Formal goals
• Organisational design
• Financial resources
• Physical facilities
• Rules & regulations
• Surface competencies & skills
Organisational Behavior, Do Tien Long

42. The organisational iceberg
Behavioural (covert) aspects
• Attitudes
• Communication patterns
• Informal team processes
• Personality
• Conflict
• Political behaviour
• Underlying competencies & skills
Organisational Behavior, Do Tien Long

43. Morgan’s 8 ways of viewing
organizations
1. Machines 5. Political systems
2. Organisms 6. Psychic prisons
3. Brains
7. Flux & transformation
4. Cultures
8. Instruments of
domination
The metaphors are not fixed categories and are not
mutually exclusive
Organisational Behavior, Do Tien Long

44. 1. Machines
• Organizations can be designed as machines with
orderly relations between clearly defined parts
• This view can provide the basis for efficient
operation in a routine, reliable and predictable way
– bureacratic structure
However it may limit the development of human
capacities
Organisational Behavior, Do Tien Long

45. 2. Organisms
• The organization is seen as a living system; in the
same way that biological mechanisms adapt to
changes in their environment
• Organizations operating within a turbulent and
dynamic environment require a adaptable type of
structure
Organisational Behavior, Do Tien Long

46. 3. Brains
• Involves thinking about the organization as
inventive and rational, and in a manner that
provides for flexibility and creative action
The challenge is to create new forms of organization
capable of intelligent change and that can disperse
brain like capacities
Organisational Behavior, Do Tien Long

47. 4. Cultures
• Sees organizations as complex system made up of
their own characteristic sets of ideology, values,
rituals, and systems of belief and practice
Attention to specific aspects of social development
helps to account for variations among
organizations
Organisational Behavior, Do Tien Long

48. 5. Political systems
• Create order and direct people, organizations are
intrinsically political
• They are about authority, power, superior-
subordinate relationships and conflicting of
interests
This view helps in a understanding of day-to-day
organizational life, the wheeling and dealing, and
pursuit of special interests
Organisational Behavior, Do Tien Long

49. 6. Psychic prisons
• View organizations as psychic phenomena created
and sustained by conscious and unconscious
processes
• Organizations and their members are constrained
by their shadows or “psychic prisons” and become
trapped by constructions of reality
This view provides an understanding of the reality
and illusions of organizational behaviour
Organisational Behavior, Do Tien Long

50. 7. Flux and transformation
• Everything is in a constant state of flux,
embodying characteristics of both permanence and
change
• Organizations can be seen as in a state of flux and
transformation
• To understand the nature and social life of
organizations, it is necessary to understand the
sources and logic of transformations and change
Organisational Behavior, Do Tien Long

51. 8. Instruments of domination
• Organizations are associated with processes of
domination, and individuals and groups impose
their will on others
• A feature of organizations is a symmetrical power
relation that result in the pursuit of the goals of the
few through the efforts of the many
Organisational Behavior, Do Tien Long

52. Management as an integrating
activity
Organisational Behavior, Do Tien Long

53. The psychological contract
• The series of mutual expectations & satisfaction of needs
arising from the people / organisational relationship
• Process of giving & receiving by the individual & the
organisation
• Covers a range of expectations of rights and privileges,
duties and obligations that do not form part of the formal
agreements but still has important influence of people’s
behaviour
• The significant of the contract depends on the extent it is
perceived to be fair
Organisational Behavior, Do Tien Long

54. Group practice
• The class is divided into two groups:
– Group 1 represents the organization: What
do you expect from the employees?
– Group 2 represents the employees:
What do you expect from the organization?
Organisational Behavior, Do Tien Long

55. Individuals’ expectations
Provide safe and hygienic working conditions
Make every reasonable effort to provide job security
Attempt to provide challenging and satisfying jobs and reduce alienating
aspects of work
Adopt equitable personnel policies and procedures
Allow staff genuine participation in decisions which affect them
Implement best practice in equal opportunity policies and procedures
Provide reasonable opportunities for personal development and career
progression
Treat members of staff with respect
Demonstrate an understanding and considerate attitude towards personal
Organisational Behavior, Do Tien Long
problems of staff

56. The organization’s expectation
• To accept the ideology of the organization
• To work diligently in pursuit of organizational
objectives
• Not to abuse goodwill shown by management
• To uphold the image of the organization
• To show loyalty
• Not to be betray positions of trust
• To observe reasonable and acceptable standards of
dress and appearance Behavior, Do Tien Long
Organisational

57. Process of balancing
It is unlikely that all expectations of the individual or
of the organisation will be met fully
There is a continual process of balancing, and
explicit and implicit bargaining
Organisational Behavior, Do Tien Long

58. Formula for balancing unwritten needs
of employees with the needs of the
organisation
• Caring – demonstrating genuine concern for individuals
• Communicating – really talking about what the company
hopes to achieve
• Listening – hearing not only the words but also what lies
behind the words
• Knowing - those who work for you, their families, personal
wishes, desires & ambitions
• Rewarding – money is not always necessary
Stalker Organisational Behavior, Do Tien Long

59. There Are Few Absolutes in OB
Contingency variables: quot;It Depends!!!quot;
Organisational Behavior, Do Tien Long

60. Challenges and Opportunities for
OB
• Responding to Globalization
– Increased foreign assignments
– Working with people from different cultures
– Coping with anti-capitalism backlash
– Overseeing movement of jobs to countries with low-
cost labor
– Managing people during the war on terror.
• Managing Workforce Diversity
– Embracing diversity
– Changing U.S. demographics
– Implications for managers
• Recognizing and responding to differences
Organisational Behavior, Do Tien Long

61. Challenges and Opportunities for
OB (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
Organisational Behavior, Do Tien Long

62. What Is Quality Management?
1. Intense focus on the customer.
2. Concern for continuous improvement.
3. Improvement in the quality of everything
the organization does.
4. Accurate measurement.
5. Empowerment of employees.
E X H I B I T 1–6
E X H I B I T 1–6
Organisational Behavior, Do Tien Long

63. Challenges and Opportunity for
OB (cont’d)
• Improving People Skills
• Empowering People
• Stimulating Innovation and Change
• Working in Networked Organizations
• Helping Employees Balance Work/Life
Conflicts
• Improving Ethical Behavior
Organisational Behavior, Do Tien Long

64. A Downside to Empowerment?
Organisational Behavior, Do Tien Long

65. Basic OB Model, Stage I
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
Organisational Behavior, Do Tien Long

66. The Dependent Variables
Dependent variable
A response that is affected by an independent variable (what
organizational behavior researchers try to understand).
y
Organisational Behavior, Do Tien Long
x

67. The Dependent Variables (cont’d)
Productivity
A performance measure that includes
effectiveness and efficiency.
Effectiveness
Achievement of goals.
Efficiency
Meeting goals at a low
cost.
Organisational Behavior, Do Tien Long

68. The Dependent Variables (cont’d)
Absenteeism
The failure to report to work.
Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization.
Organisational Behavior, Do Tien Long

69. The Dependent Variables (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.
Organisational Behavior, Do Tien Long

70. The Dependent Variables (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.
Organisational Behavior, Do Tien Long

71. The Dependent Variables (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.
Organisational Behavior, Do Tien Long

72. The Independent Variables
Independent variable
The presumed cause of some change in the dependent
variable; major determinants of a dependent variable.
Independent
Independent
Variables Can Be
Variables Can Be
Individual-Level Group-Level Organization
Organization
Individual-Level Group-Level System-Level
Variables
Variables Variables
Variables System-Level
Variables
Variables
Organisational Behavior, Do Tien Long

73. Challenges Facing the
Workplace
Organizational Level
• Productivity
• Developing Effective Employees
• Global Competition
• Managing in the Global Village
Group Level
• Working With Others
• Workforce Diversity Workplace
Individual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically
Organisational Behavior, Do Tien Long