Organizational Behavior: Individuals & Groups

Organizational Behavior (OB)

• It is the study and application of knowledge and theories about how people act as individuals and as a group within an organization.
• It investigates the impact of individuals, groups, and organizations in relation to the community and society at large.

Organization

• A structured social system consisting of groups and individuals working together to meet agreed-upon objectives.
• Organizations are monitored based on organizational structure, operations, and performance.

Three Levels of OB

• Individuals (Individual Performance)
• Work Groups (Group Behavior)
• Entire Organization (Organizational structure)

Individuals Performance

• It serves as the overall gauge for organizational performance.
• Individual Characteristics such as attitudes, personality, perceptions, and values influence it.
• Rewards and punishments like promotions or disciplinary actions also influence it.
• Lastly, it is influences by Individual motivation that includes various styles which enhance performance

Group Behavior

• It influences organizational performance.
• It encompasses the dynamics of formal groups created by top management and informal groups formed through common interests and friendships.
• It can be enhanced by cooperation or conflict.

Competitions Inside Organizations

• Challenging tasks can strengthen organizational goals.
• Conflicts can arise from stiff competition, erratic promotion, and administrative procedures.
• Power and politics are also part of competition inside organizations.

Organizational Structure

• Formally structured departments and divisions are part of organizational structure.
• It includes formal activities and interrelationships that enable the organization to function and operate cohesively.

Four Organizational Processes

• Leadership
• Communication
• Decision Making
• Organizational Change and Development

Leadership

• It is important for achieving organizational performance because it sets the direction for the company.

Leaders

• Chosen individuals with good behaviors and traits can manage the organization.

Communication

• It links the organization to its employees and its operating environment.

Decision Making

• It provides techniques for making sound decisions, especially during crucial times for the organization.

Organizational Change and Development

• It implements the concept of change, how it is handled, and how it improves organizational performance.

Eight Major Contributors to OB's Discipline

• Psychology
• Sociology
• Social Psychology
• Anthropology
• Political Science
• Engineering
• Management
• Medicine

Psychology

• The science that measures and explains human behavior.
• Includes: Learning, Motivation, Personality, Emotions, Perception, Training, Decision Making, Attitude Measurement, Performance Appraisal, and Work Stress.

Sociology

• The study of people in relation to their fellow human beings.
• Includes: Group dynamics, Work Teams, Conflict, Intergroup Behavior, Organizational change, and Organizational Culture.

Social Psychology

• An area in psychology that blends concepts from psychology and sociology.
• Focuses on the influence of people on one another.
• Includes: Behavioral Change, Communication, Group Processes, Group Decision Making.

Anthropology

• The study of societies to learn about human beings and their activities.
• Includes: Comparative Values, Comparative Attitudes, Cross-Cultural Analysis, and Organizational Environment.

Political Science

• The study of the behavior of individuals and groups within a political environment, Organizational Power and Politics, and Conflict.

Engineering

• The applied science of energy and matter.
• Includes: Organizational Design and Structure.

Management

• The study of the design and implementation of various administrative and organizational systems.
• Includes: Communication systems, Leadership, Motivation and Rewards, Change Management.

Medicine

• The applied science in treatment of disease to enhance an individual's health and well-being.
• Includes: Stress Management.

Aspects of OB

• Applications Oriented: Provides answers to management problems at individual, group, and organizational levels.
• Humanistic in Nature: Emphasizes feelings, attitudes, perceptions, visions, and goals.
• Provides explanations on the impact of the external environment.
• Substantiates the role of scientific methods in OB research.
• Multidisciplinary: Draws principles from several disciplines.

Organizational Effectiveness

• Quality
• Productivity
• Efficiency
• Satisfaction
• Organizational Development
• Adaptiveness
• Systems Theory Approach

Quality

• The most important criteria for organizational effectiveness.
• Involves meeting customer needs and satisfaction.

Productivity

• Reflects the relationship between inputs and outputs.
• Includes market share, number of customers served, sales, and profit.

Efficiency

• It focuses on the process of generating maximum outputs over minimum inputs.
• Being efficient means doing things quickly, with less waste of time and effort, and counting on how many were produced or accomplished.
• Being effective means getting things done by focusing more on the goals that will produce better results.

Satisfaction

• The extent to which the organization can meet the needs of its employees.

Organizational Development

• The ability to increase organizational capacity by dealing effectively with environmental demands such as increase in training programs.
• Organizations can develop by investing in development programs, which may increase survival.

Adaptiveness

• The ability of the organization to respond to internal and external changes.

Systems Theory Approach

• Emphasizes that managers must deal with the internal and external aspects of the organization.

Organization's Mission/Vision Statement

• An organization must exist for a purpose.
• It is reflected in its Mission statement which identifies the reason for the company's existence

Vision

• A statement that indicates the company's “DREAM”, or what it wants to become in a specific period of time.

Goals

• The organization must have specific actions for a particular period of time.
• Example: Increase market share from 30% to 35% for the period 20__.

Corporate Philosophy and Values

• Knowing the philosophy or values that it believes or sets in order to sustain and know its identity.

Organizational Environment

• Customers
• Political and Legal
• Social
• Technological

Customers/Clients

• The main source of profit.
• An organization should always aim for quality products and services and customer satisfaction.

Political and Legal

• The organization should abide by the proper rules and procedures on their firm's operation.

Social

• The community where the organization or firm operates.
• The firm should strictly follow environmental control standars.

Technology

• The firm should be updated in modern technology.
• Achieved through good relationships with suppliers who provide modern tools and equipment.

Levi Strauss

• Founder of the first company to manufacture blue jeans.
• A German-born American businessman.
• His firm of Levi Strauss & Co. (Levi's) began in 1853 in San Francisco, California.
• Strauss opened his wholesale business as Levi Strauss & Co. and imported fine dry goods from his brothers in New York, including clothing, bedding, combs, purses, and handkerchiefs.
• Made tents and later jeans.
• Believed business can drive profits through principles, and that company and individual values give a competitive advantage.

Levi's Exemplary Values

• Empathy
• Originality
• Integrity
• Courage

Empathy

• Walking in other people's shoes.
• Begins with paying close attention to the world.
• Listening and responding to the needs of customers, employees, and other stakeholders.

Originality

• Being authentic and innovative.
• The pioneering spirit started in 1873 with the first pair of blue jeans, still permeates all aspects of its business.
• Through innovative products and practices, they break the mold.

Integrity

• Doing the right thing.
• This means doing right by employees, brands, company, and society as a whole.
• Ethical conduct and social responsibility characterize their way of doing business.

Courage

• Standing up for what is believed in.
• It takes courage to be great.
• Willingness to tell the truth and challenge hierarchy, accepted practice, and conventional wisdom.
• Standing by convictions and acting on beliefs.

Ramon Ang

• A Filipino businessman.
• He has a Bachelor of Science degree in mechanical engineering from Far Eastern University.
• The president and chief executive officer (CEO) of Top Frontier Investment Holdings, Inc., the largest shareholder of San Miguel Corporation (SMC).
• He is also the president and CEO of SMC and the chairman of Cyber Bay Corporation and Eagle Cement Corporation.

San Miguel's Core Values

• Passion for Success
• Teamwork
• Respect for Our People
• Customer Focus
• Innovativeness
• Integrity
• Social Responsibility

Passion for Success

• Continuously striving for excellence.
• Giving the best to create value in everything.
• Being proactive, entrepreneurial, and competitive, with total dedication to results.

Teamwork

• Trust and respect unite individuals.
• They work towards shared aspirations across functional and organizational lines.

Respect for Our People

• Recognizing employees as individuals and nurturing their capabilities.
• Uplifting the dignity of labor to encourage employees to be the best.
• Believing that individual and organizational growth are interconnected.

Customer Focus

• Aiming to be the customers' preferred choice.
• Providing products and services that exceed customer expectations.

Innovativeness

• Encouraging creativity and ingenuity in processes, systems, products, and services.
• Outdoing the company and anticipating consumer needs to deliver something better.

Social Responsibility

• Committing to improving lives in communities.
• Intregating social responsibility and corporate citizenship into the business/

Integrity

• Commitment to good governance and the highest moral standards
• Guided by what is ethical, fair and right