Lecture No 2 Organizational Behavior Discipline: Social Theory and HR Policy Almaty 2017
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Content of the Lecture . 1. Nature of Organizational Behavior. 2. Key Elements of Organizational Behavior. 3
Key Words Behavior (A response of an individual or group to an action, environment, person, or stimulus) External environment Internal environment Forecast Trait (particular characteristic that can produce a particular type of behavior) Stimulus (single) (something that causes a response (growth or activity) Stimuli (plural) Structure (Some sort of orderly arrangement of parts or components) Pattern (consistent and recurring characteristic or trait that helps in the identification of a phenomenon or problem, and serves as an indicator or model for predicting its future behavior) Predict 4
1. Nature of Organizational Behavior. 5
The organizational behavior is quite young, multi-discipline and dynamic field of knowledge which emerged in the USA in the 50 -s of the XX century. For the first time as the term "organizational behavior" was applied by the American psychologist F. Roethlisberger, in the process of studying the organizations and behavior of its members. The first textbook on an organizational behavior under F. Lyutens's edition appeared in the USA in 1973. The theoretical base of OB as a multi-disciplinary field, organizational behavior has been influenced by developments in a number of allied disciplines including sociology, industrial/organizational psychology, and economics. The organizational behavior is also viewed as the section of management – behavioral management, therefore all fundamental tendencies, patterns and methods of the modern concepts of management are applicable in studying OB. 6
Organizational Behavior as science is a field of study aimed at systematic analysis of behavior of individuals and groups in the organization with the purpose to understand, forecast and improve performance of organization. The subject of organizational behavior are key patterns and factors, which determine behavior of individuals and groups within organizations in the course of their joint labor and interpersonal communication. OB is an applied field. The purpose of study is application of such knowledge towards improvement of organization's effectiveness. 7
All three layers are interdependent. All aspects of OB will be learnt from the point of view of all the layers together and individually. Study of OB mandatory takes into account External Environment. 8
Organizational behavior (OB) is the study of human behavior in the organization, the individual-organization, group interaction and the organization itself. And these factors are influenced by the external environment in which the individuals and the organization exist. • The first stage of organizational behavior is to study the unique perspective that each individual brings to the work setting. Whenever an individual joins an organization he brings with him unique set of personal characteristics, experiences from other organizations and a personal background. • The second stage of organizational behavior is to study the dynamics of how the incoming individuals interact with the broader organization. No individual can work in isolation. He comes into contact with other individuals and the organization in a variety of ways. The individual who joins a new organization has to come into contact with the co-workers, managers, formal policies and procedures of the organization • The organizational behavior must be studied from the perspective of the organization itself because an organization exists before a particular individual joins in and continues to exist after he or she has left the organization. • Moreover, both the individuals and the organization are influenced by the external environment. 9
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Stimulus something that causes growth or activity: motivating stimulus demotivating stimulus Pattern consistent and recurring characteristic or trait Behavior A response of an individual or group to an action, environment, person, or stimulus. Organizational behavior is a combination of responses to external and internal stimuli by a person as an individual or as a part of a group. 12
Organizational behavior provides a rational thinking about people and their behavior. THE MAJOR OBJECTIVE OF ORGANIZATIONAL BEHAVIOR IS TO EXPLAIN AND PREDICT HUMAN BEHAVIOR IN ORGANIZATIONS, SO THAT RESULT YIELDING SITUATIONS CAN BE CREATED. 13
Organizational behavior starts with a set of fundamental concepts around the nature of people and organization. These concepts are the principles that form a strong foundation of organizational behavior. The nature of organizational behavior is made of two components: 1. The nature of the man (people). 2. The nature of the organization. 14
Nature of organization defines the character of the company by acting as a mirror reflection of the company. A) Social system B) Mutual interest − every organization needs people and people need organizations to survive and prosper. C) Ethics − They are the moral principles of an individual, group, and organization. In order to attract and keep valuable employees, ethical treatment is necessary and some moral standards need to be set. 15
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The basic qualities of a person, or the character that personifies an individual, they can be similar or unique. A) Individual Difference. B) Perception C) A whole person. D) Motivated behavior. E) Desire for involvement. F) Value of person. 20
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2. Key Elements of Organizational Behavior. 27
Key Words Organizational chart Proactive (acting in (defines who does what and hierarchical lines of authority) anticipation of future problems, needs, or changes) Technology (the application Reactive (reacting to events of scientific knowledge for practical purposes) or situations rather than acting first to change or prevent something) 28
Nature of man (people) Nature of organization Organizational behavior 29
Social System Mutual Interest Ethics 30
Individual Difference Value of a Person Perception BASIC CONCEPTS Desire for Involvement A Whole Person Motivated Behavior 31
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External Environment Organization Group Individual 33
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Internal People Structure Technolog y 35
OB Key Elements People Structure Technology External Environment 36
Organization as a social system is the patterned series of interrelationships existing between individuals, groups of individuals, material resources and processes, and institutions and forming a whole. 37
People make the internal social system of the organization. They consist of individuals and groups, and large groups as well as small ones. People are the living, thinking, feeling beings who created the organizations. It exists to achieve their objectives. Organizations exist to serve people. The workforce is one of the critical resources that need to be managed. In managing human resources, managers have to deal with: i) Individual employee who are expected to perform the tasks allocated to them. ii) Two-way relationships such as superior-subordinate interactions. iii) Groups who work as teams and have the responsibility for getting the job done. iv) People outside the organization system such as customers and governments officials. 38
Structure defines the official relationships in organizations. Different jobs are required to accomplish all of an organization’s activities. There are managers and employees, accountants and assemblers. These people have to be related in some structural way so that their work can be effective. Structures are usually described in the form of an organization chart. This places individuals in boxes that denote their job and their position in the hierarchy and traces the direct lines of authority (command control) through the management hierarchies. GM HR Generalist Finance Compensation Accountant 39
Organizations have technology for transforming inputs and outputs. These technologies consist of physical objects, activities and process, knowledge, all of which are brought to bear on raw materials, labor and capital inputs during a transformation process. 40
All organizations operate within an external environment. There are two distinct sets of environment: i) Specific environment: this includes the suppliers, customers, competitors, governments’ agencies, employees, unions, political parties etc. ii) General environment: it includes the economic, political, cultural, technological and social factors in which organization operates. 41
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PEST analysis is a concept in marketing principles. This concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project/product/service etc. 43
P E S T • Government type and stability; Regulation trends ; Social and employment regulation; Tax policy; Environment regulation • Economic growth, inflation and interest rate; Unemployment and labor supply; Labor costs; Impact of globalization • Population growth rate and age profile; Population health, education; Mobility; Press attitude; Public opinion. • Impact of emerging technologies; Impact of Internet; Research and development activity. 44
• What is the political situation of the country and how can it affect the industry? • What are the prevalent economic factors? • How much importance does culture has in the market and what are its determinants? • What technological innovations are likely to pop up and affect the market structure? • Are there any current legislations that regulate the industry or can there be any change in the legislations for the industry? • What are the environmental concerns for the industry? 45
Organizations are embedded in an environment within which they operate. Some of the external factors may be completely beyond the control of the organization to change, such as cultural, social or economic, or governmental aspects: - government policies and the impact created when they are changed; - demographic, social and educational changes; - effect of legal regulation or deregulation; - technological changes; - availability and cost of finance; - influence of market structures and dynamics of labor market. 46
However, many of other factors are all within the control of the organization, such as: - being in tune with the technological changes, - being a step ahead of competition, - stocking up and buffering suppliers when certain materials are likely to be in short supply Effectively managing these situations requires adaptability to changes, and being able to manage problematic situations through good decision making. Those organizations which are proactive (that is watchful and take action before crisis situation occur) and can manage their external environment are more effective that those that are reactive (that is caught off guard and wake up after facing the crises situation) and are unable to cope effectively. 47
3. Contributing Disciplines to Organizational Behavior 48
The organizational behavior is quite young, multi-discipline and dynamic field of knowledge which emerged in the USA in the 50 -s of the XX century. For the first time as the term "organizational behavior" was applied by the American psychologist F. Roethlisberger, in the process of studying the organizations and behavior of its members. The first textbook on an organizational behavior under F. Lyutens's edition appeared in the USA in 1973. The theoretical base of OB as a multi-disciplinary field, organizational behavior has been influenced by developments in a number of allied disciplines including sociology, industrial/organizational psychology, and economics. The organizational behavior is also viewed as the section of management – behavioral management, therefore all fundamental tendencies, patterns and methods of the modern concepts of management are applicable in studying OB. 49
Human behavior in the organization is rather unpredictable. It is unpredictable because it arises from people’s deep-seated needs and value systems. HOWEVER IT CAN BE PARTIALLY UNDERSTOOD IN TERMS OF THE FRAMEWORK OF BEHAVIORAL SCIENCE, MANAGEMENT AND OTHER DISCIPLINES. 50
Psychology (study of behavior and mind) Personality Psychology (study of personality and its variation among individuals) Counseling Psychology (counseling process and outcome; supervision and training; career development and counseling) Educational Psychology (scientific study of human learning) Social psychology (study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others) Sociology (study of social behavior) Human Resources Management (management of human resources) Anthropology (study of various aspects of humans within past and present societies) Political science (deals with systems of government, and the analysis of political activities, political thoughts and political behavior) Economics (study of factors that determine the production, distribution, and consumption of goods and services) Mathematics and Statistics (mathematical reasoning can provide insight or predictions about nature) 51
• Psychology has perhaps the most influence on the field of organizational behavior because it is a science of behavior. • Psychological principles and its models help significantly in gaining the knowledge of determinants of individual behavior such as learning process, motivation techniques, perceptual process and its implications, training process, leadership effectiveness, job satisfaction, individual decision making, performance appraisal, attitude measurement, employee selection, job design and work stress. 52
• The major focus of sociologists is on studying the social systems in which individuals fill their roles. The focus of attention is centered on group dynamics. • Sociological concepts, theories, models and techniques help significantly to understand better the group dynamics, organizational culture, organization structure, bureaucracy. 53
• Economics contributes organizational behavior to great extent in designing the organizational structure. • Economics examines the extent to which the organization structure and size of an organization varies in response to attempts to avoid market failures through minimizing production and transaction costs within the constraints of human and environmental factors. 54
It is a function in the organizations designed to maximize employee performance in service of an employer's strategic objectives. 55
• • • Hypotheses Social theory Human resources Animate nature Inanimate nature • • • System Behavior Stimulus Pattern Organizational behavior 56
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