2. The Dynamics of people and organizations
A primary goal of management education is to
develop students into managers who can think
ahead, exercise good judgment, make ethical
decisions, and take into consideration the
implications of their proposed actions
– Jane Schmidt-Wilk
Organizations are complex systems.
Need to understand how the system operates esp. in a sociotechnical system – humanity
Human behavior in organizations is sometimes unpredictable
Behaviors may come from deep-seated needs, lifetime experiences and personal value
Human behavior in a organization can be partially understood
Applying the frameworks of behavioral science, management and other disciplines.
There are no perfect solutions to organizational problems
Increase the understanding and skills – work relationships can substantially upgraded
We do not have the luxury of not working with or relate to
Learn human behavior.
Explore how to improve he interpersonal skills
Begin to mange ones relationships with others at work.
4. Understanding human behavior
systematic study and careful application of knowledge about
how people – as individuals and as groups – act within
Strive to identify ways in which people can act more efficiently
A large number of research studies and conceptual
developments constantly adds up to its knowledge base.
An applied science
Provides useful set of tools at many levels of analysis from
individual, interpersonal relations, intergroup,and whole
how people behave under a variety of conditions.
Why people behave behave as they do.
Probe for underlying explanations
Predict future employee behavior (tardiness, productive &
Provide preventive actions
At least partially and develop some human activity at work.
Managers need to remember that organizational
behavior is a tool for human benefit
Goals of OB
6. Key forces – complex set of forces affects the nature of organizations
7. Key Forces
Make up the internal social system of an organization
Melting pot of diversity – talents, background and perspectives to their jobs
Managers need to be tuned in to these diverse patterns and trends.
Changes in the labor force
• Decline in work ethic and rise in emphasis on leisure, self expression,
fulfillment and personal growth
• Decreased automatic acceptance of authority and increase in the desire for
participation, autonomy and control.
• Skills become obsolete due to rapid technological advances – retrain or be
• Security needs are prime concern and loyalty diminishes because of downsizing
• Absence of meaningful salary growth has placed renewed emphasis on money
as a motivator
Companies address diversity by becoming compassionate and caring,
building pride without de-valuing others, empowering some without
exploiting, demonstrating openness, confidence, authentic compassion and
8. • Structure
Defines the formal relationship and use of people in organizations.
Effective coordination of work
Create complex problems of cooperation, negotiation and decision making
Provides he resources with which people work and affects the tasks they
Benefit of technology – does more and better work however it restricts people in
OB’s challenge is to maintain the delicate balance between technical and social
Internal or external
Organizations are part of a larger system and factors influence them like:
Citizens expect organizations to be socially responsible
New products and competition for customers come from around the globe
The direct impact of unions diminishes
Dramatic pace of change in society.
The external environment influences the attitudes of people, affects working
conditions, and provides competitions for resources and power.
9. Positive Characteristics of OB
• Interdisciplinary in nature – integrates behavioral sciences,
social sciences and other disciplines
• Emerging knowledge, theories, models and conceptual
• Increasing acceptance of theory and research by practicing
Willingness of managers to explore new ideas
More receptive to new models
Support related research
Hungrily experiment with new ideas
16. Fundamental Concepts of OB
Nature of people
The unique way in which each person sees, organizes and interprets things.
Selective perception cause misinterpretation
A whole person
We employ the whole person not just their brains or skills
Ergonomics is the science of fitting workplace conditions and job demands
to the capabilities of the working population
A path towards increased need fulfillment is a better approach
Desire for involvement
Hunger for a change to chare what they know and to learn from the
Organizations need to provide opportunities for meaningful involvement –
Value of the person
Worth before the word
meal before the message
they want to be treated differently from other factors of production
17. Nature of organization
or social structure in general refer to entities or groups in definite
relation to each other, to relatively enduring patterns of behavior and
relationship within social systems, or to social institutions and norms
becoming embedded into social systems in such a way that they shape
the behavior of actors within those social systems. Social systems can be
said to be the patterns of behavior of a group of people possessing
similar characteristics due to their existence in same society.
Formal and informal social systems
The idea of a social system provides a framework for analyzing
organizational behavior issues. It helps make OB problems
understandable and manageable
Symbiotic relationship between organizations and people
Provides a superordinate goal – one that can attained only through the
integral effort of individuals and their employers.
Treatment of employees in an ethical fashion
Establish code of ethics, publicized statements of wthical values, provide
ethics trainings, reward employees for notable ethical behaviors, set up
internal procedure to handle misconduct.
21. Social Systems and Organizational
A social system is a complex set of human
relationships interacting in many ways. Within an
organization, the social system includes all the
people in it and their relationships to each other and
to the outside world. The behavior of one member
can have an impact, either directly or indirectly, on
the behavior of others. Also, the social system does
not have boundaries...it exchanges goods, ideas,
culture, etc. with the environment around it.
23. Culture is the conventional behavior of an
organization that encompasses beliefs, customs,
knowledge, and practices. It influences human
behavior, even though it seldom enters into their
conscious thought. People depend on culture as it
gives them stability, security, understanding, and
the ability to respond to a given situation. This is
why people fear change. They fear the system will
become unstable, their security will be lost, they
will not understand the new process, and they will
not know how to respond to the new situations.
25. HOW AN ORGANIZATION's CULTURE CAN BE
Organization culture can be a set of key values , assumptions,
understandings and norms that is shared by members of an
Organization values are fundamental beliefs that an organization
considers to be important , that are relatively stable over time,
and they have an impact on employees behaviors and attitudes.
Organization Norms are shared standards that define what
behaviors are acceptable and desirable within organization.
Shared assumptions are about how things are done
in an organization.
Understandings are coping with internal / external problems
26. LEVELS OF ORGANIZATION CULTURE
LEVEL 1---VISIBLE, that can be seen at the surface
-office layout [ open office]
-ceremonies[ monthly / annual awards/long
27. LEVEL 2- INVISIBLE , that can be cannot be seen but
-stories about people performance
-symbols [ flag, trademark, logos, etc]
-corporate mission statements
-recruitment/selection [ methods used]
-fairness in treatment
-risk taking in business deals
-formality in approach
-autonomy for departments
-responsiveness to communication
-empowerment of staff.
28. Approaches to OB
Human Resources (Supportive) – Employee growth
and development are encouraged and supported.
Contingency – Different managerial behaviors are
required by different environments for effectiveness.
Results-oriented – outcomes of organizational
behavior programs are assessed in terms of their
Systems – all parts of an organization interact in a
29. Limitations of OB
People who lack system understanding and become
superficially infatuated with OB may develop Behavioral
bias – narrow viewpoint that emphasized satisfying
employee experiences while overlooking the broader
system of the organization in relation to all its publics.
The law of diminishing return –
he tendency for a continuing application of effort or skill toward a
particular project or goal to decline in effectiveness after a certain
level of result has been achieved.
Overemphasis on as valid organizational behavior practice may
produce negative results
At some point increase of a desirable practice produce declining
returns, eventually negative returns
30. Unethical manipulation of people
Knowledge and techniques can be used to manipulate people
People who lack ethical values could use people in unethical
The philosophy of OB is supportive and oriented toward
human resources. Seeks to improve human environment and
help people grow toward their potential.
Ethical leadership principles such as: social responsibility,
open communication, cost-benefit analysis.
31. Continuing Challenges
Seeking Quick Fixes
Are we tempted when pressured to seed rapid solutions?
Can the ideas that have been developed and tested endure with
equal success under new conditions?
Considered as relatively new discipline, can OB in clearly
define its field of student and application?