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Introduction to the Field of
Organizational Behavior
HAROLD B. PANGILINAN
Ed.D. - IEM
What are Organizations?
 Groups of people who work
interdependently toward
some purpose
 Structured patterns of
interaction
 Coordinated tasks
 Work toward some purpose
Organizational
Behavior
Research
Understand
organizational
events
Predict
organizational
events
Influence
organizational
events
Why Study Organizational Behavior
Trends: Globalization
 Economic, social, and cultural connectivity with
people in other parts of the world
 Effects of globalization on organizations:
 Greater efficiencies and knowledge sources
 Ethical issues about economies of developing countries
 New organizational structures and communication
 Greater workforce diversity
 More competitive pressure, demands on employees
Trends: Information Technology
 Blurs temporal and spatial boundaries between
employees and organizations
 Re-designs jobs and power relationships
 Increases value of knowledge management
 Supports telecommuting
 Supports virtual teams
Telecommuting
 An alternative work arrangement where employees
work at home or remote site, usually with a
computer connection to the office
 Tends to increase productivity and empowerment,
reduce stress and costs
 Problems with lack of recognition, lack of social
interaction
Trends: Changing Workforce
 Primary and secondary diversity -- but concerns
about distinguishing people by ethnicity
 More women in workforce and professions
 Different needs of Gen-X/Gen-Y and baby-boomers
 Diversity has advantages, but firms need to adjust
Trends: Employment Relationship
 Employability
 “New deal” employment relationship
 Continuously learn new skills
 Contingent work
 No contract for long-term employment
 Free agents, temporary-temporaries
 Minimum hours of work vary
Employability vs Job Security
Job Security
• Lifetime job security
• Jobs are permanent
• Company manages career
• Low emphasis on skill
development
Employability
• Limited job security
• Jobs are temporary
• Career self-management
• High emphasis on skill
development
Trends: Workplace Values & Ethics
 Values are long-lasting beliefs about what is
important in a variety of situations
 Define right versus wrong --guide our decisions
 Values relate to individuals, companies, professions,
societies, etc.
 Importance values due to:
 Need to guide employee decisions and actions
 Globalization increases awareness of different values
 Increasing emphasis on applying ethical values
 Ethics -- study of moral principles or values
Corporate Social Responsibility
 Corporate Social Responsibility
 Organization’s moral obligation toward its
stakeholders
 Stakeholders
 Shareholders, customers, suppliers, governments
etc.
 Triple bottom line philosophy
 Economic, Social & Environmental
Organizational
Behavior
Anchors
Multidisciplinary
Anchor
Systematic
Research
Anchor
Contingency
Anchor
Open Systems
Anchor
Multiple Levels
of Analysis
Anchor
Organizational Behavior Anchors
OutputsInputs
SubsystemSubsystem
Subsystem Subsystem
Organization
Open Systems Anchor of OB
FeedbackFeedback
Knowledge Management Defined
Any structured activity that
improves an organization’s
capacity to acquire, share,
and use knowledge for its
survival and success
Structural Capital
Relationship
Capital
Knowledge captured in systems
and structures
Values derived from satisfied
customers, reliable suppliers, etc.
Human Capital
Knowledge that people possess
and generate
Intellectual Capital
• Awareness
• Empowerment
• Communication
• Communities of
practice
• Grafting
• Individual learning
• Experimentation
Knowledge
acquisition
Knowledge
sharing
Knowledge
use
Knowledge Management Processes
Organizational Behaviour
 . . . a field of study that investigates the impact
that individuals, groups and structure have on
behaviour within organizations, for the purpose of
applying such knowledge toward improving an
organization’s effectiveness.
 The Importance of Organizational Behavior
 People as organizations
 People as resources
 People as people
The Nature of Organizational Behavior
Challenges at Workplace
Workplace
Organizational Level
• Productivity
• Developing Effective Employees
• Global Competition
• Managing in the Global Village
Group Level
•
Working With Others•
Workforce Diversity
Individual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically
The Rigour of OB
 OB looks at consistencies
 What is common about behaviour, and helps predictability?
 OB is more than common sense
 Systematic study, based on scientific evidence
 OB has few absolutes
 OB takes a contingency approach
 Considers behaviour in context
Beyond Common Sense
 Systematic Study
 Looking at relationships, attempting to attribute causes and
effects and drawing conclusions based on scientific evidence
 Behaviour is generally predictable
 There are differences between individuals
 There are fundamental consistencies
 There are rules (written & unwritten) in almost every setting
Contributing Disciplines to the OB Field
 Psychology
 Sociology
 Social Psychology
 Anthropology
 Political Science
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
(cont’d)
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Summary and Implications
 OB is a field of study that investigates the impact that
individuals, groups, and structure have on behaviour within
an organization.
 OB focuses on improving productivity, reducing
absenteeism and turnover, and increasing employee job
satisfaction and organizational commitment.
 OB uses systematic study to improve predictions of
behaviour.
The Historical Roots of Organizational Behavior
 Scientific Management Era (early 1900s)
 Frederick W. Taylor
 Studied the efficiency and productivity of individual workers.
 Systematically studied jobs to eliminate soldiering.
 Promoted standardized job performance methods.
 Implemented piece-rate based incentive pay systems.
 Taylor’s innovations boosted productivity markedly.
 Other Pioneers
 Frank and Lillian Gilbreth
 Henry Gantt
 Harrington Emerson
Scientific Management
 Positive Attributes
 Facilitated job specialization and mass production.
 Demonstrated to managers their role in enhancing
performance and productivity.
 Negative Attributes
 Labor opposed scientific management because its explicit goal
was to get more output from workers.
 Critics argued that Taylor’s methods and ideas would
dehumanize the workplace and reduce workers to little more
than drones.
 Theorists later argued that Taylor’s views of employee
motivation were inadequate and narrow.
The Historical Roots of Organizational
Behavior
 Classical Organization Theory
 This perspective was concerned with structuring organizations
effectively.
 Whereas scientific management studied how individual
workers could be made more efficient, organization theory
focused on how a large number of workers and managers
could be organized most effectively into an overall structure.
Major Contributors to Classical
Organization Theory
 Henri Fayol
 French executive and engineer.
 Lyndall Urwick
 British executive.
 Max Weber
 German Sociologist.
 Proposed a “bureaucratic” form of structure based on logic,
rationality, and efficiency that was assumed to be the most
efficient (universal) approach to structuring for all
organizations.
The Emergence of Organizational Behavior
 Legacy of Scientific Management and Classical
Organizational Theory
 Rationality, efficiency, and standardization were the central
themes of both scientific management and classic organization
theory.
 The roles of individuals and groups in organizations were
either ignored or given only minimal attention.
 The Hawthorne Studies (1927–1932)
 Focused attention on the role of human behavior in the
workplace.
 Led directly to the emergence of organizational behavior as a
field of study.
The Hawthorne Studies (1927–1932)
 Involved two studies conducted by Elton Mayo at Western
Electric’s plant near Chicago:
 The effects of lighting on productivity.
 The effectiveness of a piecework incentive system.
 The studies yielded surprising results:
 In the lighting study, productivity went up because the
workers were singled out for special treatment.
 In the incentive system experiment, social pressures caused
the workers to vary their work rates.
 As a result of the Hawthorne studies, researchers concluded
that the human element in the workplace was more important
than previously thought.
The Emergence of Organizational Behavior
 The Human Relations Movement
 People respond primarily to their social environment.
 Motivation depends on social, not economic needs.
 Satisfied employees work harder than dissatisfied employees.
 Douglas McGregor – Theory X and Theory Y
 Abraham Maslow – Hierarchy of needs
 Toward Organizational Behavior: The Value of People
 Organizational behavior reached maturity as a field of study in
the late 1950s .
Contextual Perspectives on Organizational
Behavior
 The Systems Perspective
 A system is an interrelated set of elements that function
as a whole.
 The Systems Approach
 Provides a framework for understanding how the
elements of an organization interact among themselves
and with their environment.
Contextual Perspectives on Organizational
Behavior
 The Universal Perspective
 Suggests that whenever a manager encounters a
problem, a universal approach exists that will lead to the
desired outcome.
 The Contingency Perspective
 Suggests that whenever a manager encounters a
problem, the approach to use is contingent on other
variables.
The Systems Approach to Organizations
Contextual Perspectives on Organizational
Behavior
 Interactionalism: People and Situations
 First presented in terms of interactional psychology, this view
assumes that individual behavior results from a continuous
and multidirectional interaction between the characteristics of
the person and the characteristics of the situation.
 Interactionalism attempts to explain how people select,
interpret, and change various situations
There Are Few Absolutes in OB
Contingency
Variablesx y
The Independent Variables
Independent
Variables
Individual-Level
Variables
Organization
System-Level
Variables
Group-Level
Variables
The Dependent Variables
x
y
The Dependent Variables (cont’d)
The Dependent Variables (cont’d)
The Dependent Variables (cont’d)
The Dependent Variables (cont’d)

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Working with people

  • 1. Introduction to the Field of Organizational Behavior HAROLD B. PANGILINAN Ed.D. - IEM
  • 2. What are Organizations?  Groups of people who work interdependently toward some purpose  Structured patterns of interaction  Coordinated tasks  Work toward some purpose
  • 4. Trends: Globalization  Economic, social, and cultural connectivity with people in other parts of the world  Effects of globalization on organizations:  Greater efficiencies and knowledge sources  Ethical issues about economies of developing countries  New organizational structures and communication  Greater workforce diversity  More competitive pressure, demands on employees
  • 5. Trends: Information Technology  Blurs temporal and spatial boundaries between employees and organizations  Re-designs jobs and power relationships  Increases value of knowledge management  Supports telecommuting  Supports virtual teams
  • 6. Telecommuting  An alternative work arrangement where employees work at home or remote site, usually with a computer connection to the office  Tends to increase productivity and empowerment, reduce stress and costs  Problems with lack of recognition, lack of social interaction
  • 7. Trends: Changing Workforce  Primary and secondary diversity -- but concerns about distinguishing people by ethnicity  More women in workforce and professions  Different needs of Gen-X/Gen-Y and baby-boomers  Diversity has advantages, but firms need to adjust
  • 8. Trends: Employment Relationship  Employability  “New deal” employment relationship  Continuously learn new skills  Contingent work  No contract for long-term employment  Free agents, temporary-temporaries  Minimum hours of work vary
  • 9. Employability vs Job Security Job Security • Lifetime job security • Jobs are permanent • Company manages career • Low emphasis on skill development Employability • Limited job security • Jobs are temporary • Career self-management • High emphasis on skill development
  • 10. Trends: Workplace Values & Ethics  Values are long-lasting beliefs about what is important in a variety of situations  Define right versus wrong --guide our decisions  Values relate to individuals, companies, professions, societies, etc.  Importance values due to:  Need to guide employee decisions and actions  Globalization increases awareness of different values  Increasing emphasis on applying ethical values  Ethics -- study of moral principles or values
  • 11. Corporate Social Responsibility  Corporate Social Responsibility  Organization’s moral obligation toward its stakeholders  Stakeholders  Shareholders, customers, suppliers, governments etc.  Triple bottom line philosophy  Economic, Social & Environmental
  • 14. Knowledge Management Defined Any structured activity that improves an organization’s capacity to acquire, share, and use knowledge for its survival and success
  • 15. Structural Capital Relationship Capital Knowledge captured in systems and structures Values derived from satisfied customers, reliable suppliers, etc. Human Capital Knowledge that people possess and generate Intellectual Capital
  • 16. • Awareness • Empowerment • Communication • Communities of practice • Grafting • Individual learning • Experimentation Knowledge acquisition Knowledge sharing Knowledge use Knowledge Management Processes
  • 17. Organizational Behaviour  . . . a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.  The Importance of Organizational Behavior  People as organizations  People as resources  People as people
  • 18. The Nature of Organizational Behavior
  • 19. Challenges at Workplace Workplace Organizational Level • Productivity • Developing Effective Employees • Global Competition • Managing in the Global Village Group Level • Working With Others• Workforce Diversity Individual Level • Job Satisfaction • Empowerment • Behaving Ethically
  • 20. The Rigour of OB  OB looks at consistencies  What is common about behaviour, and helps predictability?  OB is more than common sense  Systematic study, based on scientific evidence  OB has few absolutes  OB takes a contingency approach  Considers behaviour in context
  • 21. Beyond Common Sense  Systematic Study  Looking at relationships, attempting to attribute causes and effects and drawing conclusions based on scientific evidence  Behaviour is generally predictable  There are differences between individuals  There are fundamental consistencies  There are rules (written & unwritten) in almost every setting
  • 22. Contributing Disciplines to the OB Field  Psychology  Sociology  Social Psychology  Anthropology  Political Science
  • 24. Contributing Disciplines to the OB Field (cont’d)
  • 25. Contributing Disciplines to the OB Field (cont’d)
  • 26. Contributing Disciplines to the OB Field (cont’d)
  • 27. Contributing Disciplines to the OB Field (cont’d)
  • 28. Summary and Implications  OB is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within an organization.  OB focuses on improving productivity, reducing absenteeism and turnover, and increasing employee job satisfaction and organizational commitment.  OB uses systematic study to improve predictions of behaviour.
  • 29. The Historical Roots of Organizational Behavior  Scientific Management Era (early 1900s)  Frederick W. Taylor  Studied the efficiency and productivity of individual workers.  Systematically studied jobs to eliminate soldiering.  Promoted standardized job performance methods.  Implemented piece-rate based incentive pay systems.  Taylor’s innovations boosted productivity markedly.  Other Pioneers  Frank and Lillian Gilbreth  Henry Gantt  Harrington Emerson
  • 30. Scientific Management  Positive Attributes  Facilitated job specialization and mass production.  Demonstrated to managers their role in enhancing performance and productivity.  Negative Attributes  Labor opposed scientific management because its explicit goal was to get more output from workers.  Critics argued that Taylor’s methods and ideas would dehumanize the workplace and reduce workers to little more than drones.  Theorists later argued that Taylor’s views of employee motivation were inadequate and narrow.
  • 31. The Historical Roots of Organizational Behavior  Classical Organization Theory  This perspective was concerned with structuring organizations effectively.  Whereas scientific management studied how individual workers could be made more efficient, organization theory focused on how a large number of workers and managers could be organized most effectively into an overall structure.
  • 32. Major Contributors to Classical Organization Theory  Henri Fayol  French executive and engineer.  Lyndall Urwick  British executive.  Max Weber  German Sociologist.  Proposed a “bureaucratic” form of structure based on logic, rationality, and efficiency that was assumed to be the most efficient (universal) approach to structuring for all organizations.
  • 33. The Emergence of Organizational Behavior  Legacy of Scientific Management and Classical Organizational Theory  Rationality, efficiency, and standardization were the central themes of both scientific management and classic organization theory.  The roles of individuals and groups in organizations were either ignored or given only minimal attention.  The Hawthorne Studies (1927–1932)  Focused attention on the role of human behavior in the workplace.  Led directly to the emergence of organizational behavior as a field of study.
  • 34. The Hawthorne Studies (1927–1932)  Involved two studies conducted by Elton Mayo at Western Electric’s plant near Chicago:  The effects of lighting on productivity.  The effectiveness of a piecework incentive system.  The studies yielded surprising results:  In the lighting study, productivity went up because the workers were singled out for special treatment.  In the incentive system experiment, social pressures caused the workers to vary their work rates.  As a result of the Hawthorne studies, researchers concluded that the human element in the workplace was more important than previously thought.
  • 35. The Emergence of Organizational Behavior  The Human Relations Movement  People respond primarily to their social environment.  Motivation depends on social, not economic needs.  Satisfied employees work harder than dissatisfied employees.  Douglas McGregor – Theory X and Theory Y  Abraham Maslow – Hierarchy of needs  Toward Organizational Behavior: The Value of People  Organizational behavior reached maturity as a field of study in the late 1950s .
  • 36. Contextual Perspectives on Organizational Behavior  The Systems Perspective  A system is an interrelated set of elements that function as a whole.  The Systems Approach  Provides a framework for understanding how the elements of an organization interact among themselves and with their environment.
  • 37. Contextual Perspectives on Organizational Behavior  The Universal Perspective  Suggests that whenever a manager encounters a problem, a universal approach exists that will lead to the desired outcome.  The Contingency Perspective  Suggests that whenever a manager encounters a problem, the approach to use is contingent on other variables.
  • 38. The Systems Approach to Organizations
  • 39. Contextual Perspectives on Organizational Behavior  Interactionalism: People and Situations  First presented in terms of interactional psychology, this view assumes that individual behavior results from a continuous and multidirectional interaction between the characteristics of the person and the characteristics of the situation.  Interactionalism attempts to explain how people select, interpret, and change various situations
  • 40. There Are Few Absolutes in OB Contingency Variablesx y