Chapter 1: Organizational Behavior PDF

1 THE NATURE AND SCOPE OF ORGANIZATIONAL BEHAVIOR INTENDED LEARNING OUTCOMES By the end of the learning experience, students must be able to: 1. Explain what is organizational behavior. 2. Summarize the research...

1 THE NATURE AND SCOPE OF ORGANIZATIONAL BEHAVIOR INTENDED LEARNING OUTCOMES By the end of the learning experience, students must be able to: 1. Explain what is organizational behavior. 2. Summarize the research methods of organizational behavior. 3. Identify the benefits of studying organizational behavior knowledge. 4. Explain key events in the history of organizational behavior. 5. Understand how a person develops organizational behavior skills. A. THE MEANING AND RESEARCH METHODS OF ORGANIZATIONAL BEHAVIOR The Meaning of Organizational Behavior Organizational behavior (OB) is the study of human behavior in the workplace, the interaction between people and the organization, and the organization itself. It is the study of how people behave in organizational settings. Its principles are applied with the goal of making organizations and the people in them work more effectively together. Organizational behavior research can focus on individual behavior within the organization, how groups work together, how the organization itself behaves, and how all of these are interconnected and impact each other. The goals of OB are to explain, predict, and control behavior. Importance of Organizational Behavior The principles of effective organizational behavior can be applied to many aspects of the workplace. It can be used to improve productivity and performance, boost employees’ satisfaction, increase motivation, foster better leadership, understand decision-making, and facilitate better cross-team collaboration. As an academic discipline, organizational behavior is studied in many business administration programs. Organizational behavior is also researched and applied by a number of business roles, such as consultants or organizational management experts. Types of Organizational Behavior Models Organizational behavior has been studied for decades, leading to a number of theories and models on effective organizational management. The following five management models make up a popular framework for thinking about organizational behavior: Autocratic: This model can be used to best describe historical workplaces, particularly those during the industrial revolution. An autocratic model is based on power and authority, demands employee obedience, and is built on dependency on the boss for directions. Jobs within the autocratic model may provide no more than a paycheck for their employees. Custodial: A custodial model is built on providing a sense of security and care from the organization to employees, such as through providing a strong benefits package. The aim with the custodial model is to provide incentives and economic resources that will build loyalty toward the organization. Supportive: A supportive model is built on leadership motivating and inspiring workers. Unlike the autocratic model, it assumes that employees are self-motivated. So a manager’s job is to help foster that motivation by supporting the employee’s talents, interests, and goals. This is built Page |1 with the understanding that with the right support, employees will take initiative and increase performance on their own. Collegial Unlike the first two models, the collegial model acknowledges that social factors are a key factor in employee satisfaction. This model is built on the idea of colleagues working together as a team and fostering a sense of partnership. Power within the organization is shared to a certain degree and it could feature a flattened hierarchy without direct top-down direction. System: This is the newest organizational behavior model, built on fostering passion and a commitment to the organization’s goals. The idea is that by giving employees a high level of meaning at work, workers will achieve greater satisfaction and performance. This system expects managers to show compassion and care toward their direct reports and work to establish a positive workplace culture. Influences of Organizational Behavior There are hundreds of factors that can influence organizational behavior. For example, one of the earliest OB studies was designed to investigate how lighting impacts productivity (in the process, the researchers discovered workers responded more to social factors than environmental ones). Influential factors can generally be boiled down to a few main groups: Social: Leadership styles, coworker personalities, group dynamics, relationships, etc. Environment: Lighting, aesthetics, office/desk set-up, etc. Structure: Employee hierarchy, organizational structure of departments in business units, etc. Tools: Access to information, tools, and technology Processes: Workflow management, reporting structures, project management styles, etc. B. RESEARCH METHODS OF ORGANIZATIONAL BEHAVIOR 1. Methods of Data Collection. Three frequently used methods of collecting data in organizational behavior are surveys, interviews, and direct observation of behavior. The type of survey questionnaire used by an organizational behavior specialist is prepared rigorously. Survey Questionnaire – design to measure relevant issues about the topic being employed. Interview - used to obtain ideas for survey questions. It is helpful in uncovering explanations about phenomena and furnishing leads for further inquiry. Systematic observations – are made about the phenomena under study. One concern about this method is that the people under observation may perform typically when they know they are being observed. Participant observation – the observer becomes a member of the group about which he or she collects information. 2. Research Methods. Four widely used research methods of organizational behavior are case studies, laboratory experiments, field experiments (or studies), and meta-analysis. Case study - is usually collected by an observer recording impressions in his or her mind or on a notepad. It provide a wealth of information that can be used to explain what is happening in a given situation. Experiment – is the most rigorous research method. The essence of conducting an experiment is making sure that the variable being modified(the independent variable) influences the results. The independent variable is thought to influence the dependent variable. The dependent variable is also known as the criterion (or measure). Laboratory experiments – Is that conditions are supposedly under the experimenter’s control. A group of people might be brought into a room to study the effects of stress on problem-solving ability P a g e |2  Field Experiments – attempt to apply the experimental method to real life situations. Variables can be controlled more readily in the laboratory than in the field, but information obtained in the field is often more relevant. Meta-analysis- is a quantitative or statistical review of the literature on a particular subject, and is also an examination of a range of studies for reaching a combined results or best estimate. Meta-analysis is also a study of studies combining quantitative information from them all. An important use of meta-analysis in organizational behavior is to understand how moderator variables influence the results of studies. An example would be how stress from personal life can influence susceptibility to job stress. C. BENEFITS FROM STUDYING ORGANIZATIONAL BEHAVIOR Organizational behavior relates to the process—rather than the content—of conducting managerial work. 1. Skill Development An essential requirement for entering into, surviving, and succeeding in the modern workplace is to have appropriate skills. Organizational behavior skills have gained in importance in the modern workplace. A survey of 1,420 CIOs found that 53 percent of these managers offered information technology employees training In areas outside of technology. Soft skills generally refer to interpersonal skills such as motivating others, communicating, and adapting to people of different cultures. Hard skills generally refer to technical skills. 2. Personal Growth through Insight Into Human Behavior Understanding others leads to personal fulfillment, and can also lead to enhanced self- knowledge and self-insight. Insight is useful for such purposes as selecting people for jobs and assignments, communicating, and motivating. 3. Enhancing Organizational and Individual Effectiveness An important goal of organizational behavior is to improve organizational effectiveness, the extent to which an organization is productive and satisfies the demands of its interested parties. Substantial evidence has accumulated that emphasizing the human factor increases productivity and gives a firm a competitive advantage. One reason is that people-oriented management practices enable workers to use their wisdom and to receive appropriate training. If a person develops knowledge about subject such as improved interpersonal communication, conflict resolution, and teamwork, he or she will become more effective. 4. Sharpening and Refining Common Sense Organizational behavior sharpens and enlarges the domain for common sense. Organizational behavior knowledge also refines common sense by challenging you to reexamine generally accepted ideas that may be only partially true—such as inactivity reduces stress for everybody. D. A BRIEF HISTORY OF ORGANIZATIONAL BEHAVIOR The history of organizational behavior is rooted in the behavioral approach to management, the belief that specific attention to workers’ needs creates greater satisfaction and productivity. Page |3  A common theme of the behavioral approach is a need to focus on people. Five key developments in the history of organizational behavior are the classical approach to management, the Hawthorne studies, the human relations movement, the contingency approach to management and leadership, and positive organizational behavior. 1. The classical approach to management encompasses scientific management and administrative management, and contributed some insights into understanding workplace behavior. The focus of scientific management was the application of scientific methods to increase individual worker’s productivity. According to the principles of scientific management, there is a division of work between managers and workers. Administrative management was concerned primarily with how organizations should be managed and structured. The core of management knowledge lies within the classical school, including the framework of planning, organizing, and controlling. 2. The Hawthorne Studies. Without the insights gained from the Hawthorne studies, organizational behavior might not have emerged as a discipline. The first Hawthorne study examined the effects of lighting on productivity. A second study conducted in a relay assembly room examined the relationships among rest, fatigue, and productivity. A major conclusion from these studies was the workers reacted positively because management cared about them (the Hawthorne effect). The Hawthorne effect is the tendency of people to behave differently when they receive attention because they respond to the demands of the situation. The Hawthorne studies also led to many other conclusions, such as the fact that effective communication with workers is critical to managerial success. Keep in mind that the Hawthorne studies have frequently been criticized for lacking in scientific rigor. 3. The Human Relations Movement. The human relations movement was based on the belief that an important link exists among managerial practices, morale, and productivity. Key points of the movement are that satisfied workers are more productive and that, given the proper working environment, virtually all workers would be highly productive. A cornerstone of the human relations movement is Theory X and Theory Y of Douglas McGregor. Theory X is the somewhat stern and pessimistic traditional assumptions about worker capabilities. Theory Y is an alternative, and optimistic, set of assumptions. 4. The Contingency Approach. The contingency approach to management emphasizes there is no one best way to manage people or work. The contingency approach is derived from the study of leadership styles. The strength of the contingency approach is that it encourages managers and professionals to examine individual and situational differences before deciding on a course of action. 5. Positive Organizational Behavior. An emerging movement in organizational behavior is a focus on what is right with people. Luthans defines positive organizational behavior as the study and application of human resource strengths and psychological capacities that can be measured, developed, and managed for performance improvement. The criteria of being measurable and developmental are significant because they separate positive organizational behavior from simply giving pep talks and inspirational speeches to employees. In general, positive organizational behavior focuses on developing human strengths, making people more resilient, and cultivating extraordinary individuals, work units, and organizations. E. SKILL DEVELOPMENT IN ORGANIZATIONAL BEHAVIOR Developing skills in organizational behavior refers to learning to work effectively with individuals, groups, and organizational forces. Skill development in organizational behavior follows a general learning model, using the following components: P a g e |4  1. Conceptual information and behavioral guidelines. Each chapter in this book presents research-based information about organizational behavior including a section titled “Implications for Management Practice.” 2. Conceptual information and examples. These include brief descriptions of organizational behavior in action, generally featuring managers and leaders. 3. Experiential exercises such as self-assessment exercises. The book provides an opportunity for practice and personalization through cases and self-assessment exercises. Self-quizzes are included because they are an effective method of helping you personalize the information, assisting you in linking conceptual information to your own situation. For example, you will read about creative problem solving and also complete a quiz about creativity. 4. Feedback on skill utilization or performance, from others. Feedback exercise appears at several places in the book. Implementing organization behavior skills outside the classroom will provide additional opportunities for feedback 5. Frequent practice. Reader who look for opportunities to practice organizational behavior skills outside the classroom will acquire skills more quickly. An important example is the development of creative thinking skills. The person who looks for imaginative solutions to problems regularly is much more likely to become a more creative thinker, and be ready to think creatively at a given moment. Contrast this with the individual who participates in a creative-thinking exercise once, and then attempts the skills a year later when the need is urgent. As in any field, frequent practicing s skill the right way leads to skill improvement. Developing organizational behavior skills is also important because it contributes to lifelong learning. F. A FRAMEWORK FOR STUDYING ORGANIZATIONAL BEHAVIOR The three levels of study in organizational behavior are (a) individual level, (b) groups and interpersonal relations level, and (c) organizational system and the global environmental level. Figure 1.1 Individuals Group and Interpersonal Relations Individual differences, mental, ability, Interpersonal communication and personality Group dynamics Learning, perception, and attribution Teams and teamwork Attitude, values, and ethics Leadership in organizations Individual decision making and creativity Power, politics, and influence Foundation concepts of motivation Conflict, stress, and well being Motivational methods and programs The Organizational System and the Global Environment Organizational structure and design Organizational culture Organizational change and knowledge management Cultural diversity and international organizational behavior Page |5  Visualize a famous athletic team with a winning history. Many fans contend that the spirit and tradition of the team, rather than individuals’ capabilities, carry it through to victories against tough opponents. Yet if the team has a couple of poor recruiting years or lose a key coach, it may lose frequently. Key factors in understanding how individuals’ functions include individual differences, mental ability and personality, learning, perception, attitudes, values attribution, and ethics. It is also important to understand individual decision making creativity, foundation concepts of motivation, and motivational programs. As suggested by the arrows in Exhibit 1.1, the various levels of study are interconnected. Understanding how individuals behave contributes to an understanding of groups and interpersonal relations, the second level of the framework. VI. IMPLICATIONS FOR MANAGERIAL PRACTICE Managers should raise their level of awareness about the availability of organizational behavior information. Before making decisions about dealing with people, pause to search for systematic information about people and organizations. Search for strengths and talents in others and yourself, and then capitalize on these strengths as a way of improving organizational and individual effectiveness. 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