Organizational Behavior
the study of individual processes, interpersonal processes, and organizational processes
individual processes
human behavior in organizational settings
interpersonal processes
the interface between human behavior and the organization
organizational processes
the organization itself
Organizations influence our lives powerfully. Most people…

are born/educated in organizationsacquire most of their material possessions from organizationsdie as members of organizationsspend most of their lives in
Studying OB helps managers understand:
why others in the organization behave as they do:personal needs, motives, behaviors, feelings and career dynamicsattitudinal processes, individual differences, group dynamics, inter group dynamics, organization culture, power, and political behaviorinteractions with people outside of the organization
The Importance of OB
The study of organizational behavior offers perspectives on the human side of managementPeople as organizationsPeople as resourcesPeople as people
Interpersonal Managerial Roles
Informational Managerial Roles
Monitor: scan business week for information about competitionDisseminator: send out memos outlining new policiesSpokesperson: Hold press conference to announce new plant
Decision-Making Managerial Roles
Entrepreneur: develop idea for new product and convince others of its meritsDisturbance Handler: resolve disputeResource Allocator: allocate budget requestsNegotiator: settle new labor contract
Primary dimensions factors:
age, race, ethnicity, gender, sexual orientation, physical/mental abilities.These factors are either inborn or exert extraordinary influence on early socialization
Secondary dimensions factors:
educational background, geographical location, income, marital status, military experiences, parental status, religious beliefs, work experiences.These factors matter to us as individuals and thatto some extent define us to others
Assimilation:
Process through which members of a minority group are forced to learn the ways of the majority group.Perpetuates false stereotypes and prejudicesDominant groups make decisions based on their own values/believesMinority groups have little say in decision-making
Benefits of Valuing Diversity
Richness of ideas/perspectives can lead to new product/market development and improvement in customer servicesWorkers feel valued and are therefore more creative and motivatedHigher productivity, better teamwork, deeper commitment to the organization and its goals
Technology
Methods used to create products both tangible and intangible
Manufacturing Organization
Transforms resources into tangible outcomes that are then sold
Service Organization
Transforms resources into an intangible output creating time/place utility for customers
Advances in Information Technology
Positive: leaner organizations, more flexible operations, increased collaboration among employees, more flexible work sites, improved management processes/systemsNegative: less personal communication, less “down time”, decreasing cycle times, increased sense of communication and decision-making urgency
Knowledge workers are:
Employees who add value simply because of what they know(computer scientists, physical scientists, engineers, product designers, video game developers)Working requirements/performance motivation needs are uniqueSpecifically tailored compensation packages
Outsourcing:
Is the practice of hiring other firms to do work previously performed by the organization itselfHelps firms to focus on core activitiesLowers labor costs through exportation of workOften soon to be out of job workers train the newly hired foreign replacements
A psychological contract
is a person’s overall set of expectationsregarding what he/she will contribute to the organization and what the organizationwill provide in return.

Unlike a business contract, a psychological contract is not written on paper, nor are all of its terms explicitly negotiated.

Person-Job Fit
The extent to which the contributions made by the individual match the inducements offered by the organization.Not static
Individual Differences
Personal attributes that vary from one person to another.Individual differences include personality, attitudes, perception, and creativity.
Motivation and Its Importance
Motivation is the set of forces that lead people to behave in particular ways. Motivation is important in organizations because, in conjunction with ability and environment, it determines performance.

P = M + A + E
P … Performance
M … Motivation (must want to do the job)
A … Ability (must be able to do the job)
E … Environment (must have the resources to do the job)
Equity Theory
Based on the relatively simple premise that people in organizations want to be treated fairly.
Equity
The belief that we are being treated fairly in relation to others.
Inequity
The belief that we are being treated unfairly in relation to others.
Positive Reinforcement
A reward or other desirable consequence that follows behavior.

Avoidance (Negative Reinforcement)
Rather than receiving a reward following a desirable behavior, the person is given the opportunity to avoid an unpleasant consequence.
The Basic Expectancy Model
People are motivated by how much they want something and the likelihood they perceive of getting it.
Participation
Occurs when employees have a voice in decisions about their own work.
Empowerment
Is the process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility.
Variable Work Schedules
Compressed work week: Employees work a full forty-hour week in fewer than the traditional five days
Flex time:
Employees gain more personal control over the hours they work each day
Goal setting
Is a useful method of enhancing employee performance. From a motivational perspective, a goal is a desirable objective.

Goals are useful for two purposes:
Goals provide a useful framework for managing motivation. Managers and employees can set goals for themselves and then work toward them.Goals are an effective control device; control is monitoring by management of how well the organization is performing.
Purposes of Rewards
Attract, retain, and motivate qualified employees.Provide equitable, fair, and competitive compensation for an employee’s contribution to the organization.Encourage desired performance behaviors by employees.
Meanings of Rewards
The surface value of a reward is its objective meaning or worth to an employee.

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The symbolic value of a reward is its subjective and personal meaning or worth to an employee.

The compensation package
The total array of money (wages, salary, commission), incentives, benefits, perquisites, and awards provided by the organization
Piecework programs:
# of units produced
Gain-sharing programs
cost reduction ideas
Bonus systems
lump sum
Long-term compensation
stock performance, earnings per share
Merit pay
performance
Profit-sharing
predetermined portion of company profits
Employee stock option plans
reduced rate
Benefits
Payment for time not worked both on (lunch, breaks) and off (vacation, holidays) the job.Social Security contributionsUnemployment compensationDisability and workers’ compensationLife and health insurance programsPension (the fund) or retirement plans
Job Sharing
Two or more PT employees share one FT job
Telecommuting
Employees spend part of their time working off-siteBenefits to organizationsReduced absenteeism/turnoverReduction in indirect expensesDownside considerationsEmployees miss the workplace social interactionEmployees lack self-control/disciplineDifficulties arise when coordinating in-face meetingsWorkplace safety requirements
Participation
Occurs when employees have a voice in decisions about their own work.

Empowerment
Is the process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility.
Common titles:
Chief financial officerVice president for human resourcesMarketing managerDirector of public relations
Uncertainty avoidance (preference for stability):
people feel threatened by unknown situations and prefer to be in clear and unambiguous situations
Masculinity (assertiveness or materialism):
Emphasis on aggressiveness and the acquisition of money and other possessions as opposed to concern for people and overall quality of life
Managerial Skills
Technical: Skills necessary to accomplish specific tasks within the organizationInterpersonal: Skills used to communicate with, understand, and motivate individuals and groupsConceptual: Skills used in abstract thinkingDiagnostic: Skills to understand cause-effect relationships and to recognize optimal solutions to problems
Performance Management Basics
The Appraiser typically employee’s supervisorIncomplete or inaccurate information about an employee’s performanceAppraiser’s lack of first hand knowledge about the employeeMultiple rater systems360 degree feedback
Group
A group is two or more people who interact with one another such that each person influences and is influenced by each other person.Group members must be interactive and influence each other.Group members do not necessarily share a goal or motivation.There are limits on group size. A collection of people so large that its members cannot interact with and influence one another is not a group.

Formal Groups
Are established by the organization to do its work and are usually included in the organization chart.
Formal Groups Include:
The command group, which is a relatively permanent formal group with functional reporting responsibility.(a company’s HR department)The task group, which is a relatively temporary formal group established to do a specific task.The affinity group, which consists of permanent collections of employees from the same level in the organization who meet on a regular basis to share information, capture emerging opportunities, and solve problems.
Size
The number of members of the group; size affects the number of resources available to perform the task.

Beyond a certain point, greater complexities of interactions and communication may make it difficult for large groups to function.

Social loafing
the tendency of some members of groups to put forth less effort in a group than they would if working alone.
Norms
A norm is a standard against which the appropriateness of a behavior is judged.Group norms usually are established during the second stage of group development.
Norms serve four purposes:
Norms help the group survive.

Norms simplify and make more predictable the behavior expected of group members. Norms help the group avoid embarrassing situations.

Conflict
disagreement among parties. It has both positive and negative characteristics.In organizations, conflict is often generated by political behavior or battles over limited resources.
A total absence of conflict can lead to apathy while a moderate degree of conflict can:
stimulate new ideas.promote healthy competition.energize behavior.
Differentiating Teams from Groups
TeamAll members are committed to a common goalGroupMembers need not have a common goal
Leadership
As a process, leadership is the use of noncoercive influence to direct and coordinate activities of group members to meet a goal.As a property, leadership is the set of characteristics attributed to those who are perceived to use such influence successfully.
The Importance of Leadership
From an organizational viewpoint, leadership is vital because it has such a powerful influence on individual and group behavior.
Leadership Versus Management
Leadership and management are related, but they are not the same.Organizations need both management and leadership if they are to be effective.An individual may be a manager, a leader, both, or neither.
Trait Approaches to Leadership
Early researchers believed that leaders had unique qualities or traits that distinguished them from their peers.Trait research has focused on identifying leadership traits, developing trait measurement methods, and using the methods to select leaders.The trait approach has been largely unsuccessful in identifying universal leadership characteristics.Current:Current trait research focuses on drive, motivation, honesty and integrity, self-confidence, cognitive ability, knowledge of the business, and charisma.
Influence
the ability to affect the perceptions, attitudes, and behaviors of others.