Chapter # 01 Introduction

 Organizational Behavior (OB) is a core subject, it is the combination of multiple disciplines.

Such as, Psychology, Sociology, Social Psychology, Anthropology and Political Science and
Principles of Management.

 But mostly 4 subjects/disciplines.

 Psychology
 Sociology
 Social Psychology
 Anthropology

 Organizational Behavior (OB) is an applied subject, application about behaviors of individuals

in an organization.

 Organization: A consciously coordinated social unit, composed of two or more people, that
functions on a relatively continuous basis to achieve a common goal or set of goals.
 A group of people who work together with a particular purpose to achieve the same goal.

 Minimum 2 people are required to be considered as group.

 Can a class considered as an organization?

 A class cannot/never be an organization. Here’s the reasons, why?
1. Basic difference there is no leader, no supporting role. CR is a class representative having same
position as other students, no rank…
2. No hierarchy in class, for an organization hierarchy must be defined, reporting relationship, who
will report to whom…
3. In organization, everyone has same goal but different tasks. Such as, Finance Department,
Marketing Department, Production Department, Manager, Brand Manager, Sub-Manager,
different work but same goal.
4. No salary in class, in fact you are paying for the services.

 Types of Organization (Structure) according to Sociology

Why we join them and serve these organizations?

There are 3 types of organizations

1.Normative organizations, also called Voluntary organizations, are based on shared interests.
As the name suggests, joining them is voluntary and typically done because people find
membership rewarding in an intangible way.
 Joining them without any monetary benefit.
 Joining them willingly and with free consent.
Example: NGOs, Societies, Clubs and Political parties etc….

2. Coercive organizations are groups that people are forced to join.

 Joining them forcefully without consent.
Example: Prison (Jail, Lockup), Rehabilitation center, Correction center and Hospital etc…

3. Utilitarian organizations, as the name suggests, are joined because of the need for a specific
material reward.
 Joining them for the purpose of profit, financial gain, monetary benefit etc…
 Most of the organizations fall in this category.
Example: High school and the workplace fall into this category—one joined in pursuit of a
diploma, the other in order to make money.

 Behavior: The way in which a person act or response to a particular situation or stimulus.
 Action in response to stimulus.
 Reaction is what, the behavior.

 Managers (or Administrators): Individuals who achieve goals through other people.
 Individuals who manage the organization.
 A person who get the work done from others.

 Managerial Activities
 Make Decision
 Allocate Resources
 Direct activities of others to attain goals.

 Common Noun: Manager

 Proper Noun: CEO (Chief Executive Officer), MD (Managing Director), Head of State
(President), Head of Government (Prime Minister), DC (District Commissioner) etc…

 4 Basic Functions of Management

1. Planning: A process that includes defining goals, establishing strategy, and developing plans to
coordinate activities.
 Defining Mission, Vision, Paperwork, Resources…

2. Organizing: Determining what tasks are to be done, who is to do them, how the tasks are to be
grouped, who reports to whom, and where decisions are to be made.
 Arrangement of resources, utilization of resources…

3. Leading: A function that includes motivating employees, directing others, selecting the most
effective communication channels, and resolving conflicts.
 Check and balance, resolving issues…

4. Controlling: Monitoring activities to ensure they are being accomplished as planned and
correcting any significant deviations.
 Take the plan, carry the plan, according to plan…

 Mintzberg’s Managerial Roles (Management Roles)

1. Interpersonal Roles: The manager maintains an interpersonal role due to his formal,power,
position and state. These roles include the following:

 Figurehead: Symbolic head; required to perform a number of routine duties of a legal or social
nature.
 The Figurehead represents the organization, as well as motivates the team to achieve goals. For
people, this managerial role is a source of power and authority.
 One example could be a regional manager for a clothing retailer attending a ribbon cutting
ceremony everytime a new store opens.

 Leader: Responsible for the motivation and direction of employees.

 Leads a team, a department, or an entire organization.
 Example: A manager sets a goal for the team and communicates his expectations, making sure
that people understand them. He monitors their progress and provides feedback and resources if
needed.

 Liaison: Maintains a network of outside contacts who provide favors and information.
 Develops and maintain internal and external relationships.
 Example: A manager coordinates with people inside the company, as well as coordinating work
between the company’s units.
 Example: A manager coordinates with people outside the organization, such as buyers, suppliers,
and strategic partners.

2. Informational Roles: All managers maintain and develop information network (including
Internet) by creating a network of interpersonal relations with others. Under it managers play the
following roles:

 Monitor: Receives a wide variety of information; serves as nerve center of internal and external
information of the organization.
 Identify problems and opportunities for growth.
 Example: Seeking customer feedback to see how exactly you can improve your products or
services.

 Disseminator: Transmits information received from outsiders or from other employees to

members of the organization.
 Share data and communicates it effectively.
 Example: A one-on-one conversation between a manager and an employee where a certain issue
is discussed.

 Spokesperson (Focal person): Transmits information to outsiders on organization’s plans,

policies, actions, and results; serves as expert on organization’s industry.
 Speaks for their organization, defending the company's interests.
 Example: A manager attends the annual shareholders’ meeting, informing the attendees about
the results her team has achieved this year and presenting statistics.
 Example: Division leaders talk to other division leaders, informing them about strategies and
resource requirements.

3. Decisional Roles: It is the role of manager to create strategy formulation and decision making.
These roles include the following:

 Entrepreneur: Searches organization and its environment for opportunities and initiates
projects to bring about change.
 Organizes and runs business processes.
 Example: A manager decides to use social media to increase sales.
 Example: A manager reorganizes a weak department, or uses mergers or acquisitions.
 Disturbance handler: Responsible for corrective action when organization faces important,
unexpected disturbances.
 Fixing the problem, maintaining productivity.
 Example: When two members of a team have a conflict, it’s the manager’s responsibility to
help them resolve it.

 Resource allocator: Makes or approves significant organizational decisions.

 Determines how and where to apply organizational resources.
 Example: A manager divides funding between the departments of his organization, based on
their current and future needs.

 Negotiator: Responsible for representing the organization at major negotiations.

 Participates in negotiations, trying to reach their goals.
Example: A manager negotiates pricing, delivery, and design with customers.

 Management Skills
Managerial roles’ require management skills.

 Technical skills: The ability to apply specialized knowledge or expertise.

 Core skills, Professional skills.
 Example: Civil Engineers, Oral Surgeons, Graphic Designers and Accountant etc…

 Human skills: The ability to work with, understand, and motivate other people, both
individually and in groups.
 Communication Skills, People Management Skills.
 Example: Good Listeners, Managing Conflicts, Understanding needs of others etc…

 Conceptual skills: The mental ability to analyze and diagnose complex situations.
 The ability to integrate new ideas,find new opportunities, decision making.
 Example: Managers require to identify problems, develop alternative situations to correct those
problems.

 Effective versus Successful Managerial Activities

Luthans and his associates studied more than 450 managers. All engaged in four managerial
activities:

1. Traditional management: Decision making, planning, and controlling.

2. Communication: Exchanging routine information and processing paperwork.
3. Human resource management: Motivating, disciplining, managing conflict, staffing, and
training.
4. Networking: Socializing, politicking, and interacting with outsiders.
 Organizational Behavior works on 3 levels (In Organizational Behavior we work on 3 levels)
1. Individual
2. Group (Team, Work in team, Group dynamics)
3. Structure (Organization structure and Culture)

 Organizational Behavior (OB): A field of study that investigates the impact that individuals,
groups, and structure have on behavior within organizations, for the purpose of applying such
knowledge toward improving an organization’s effectiveness.

 Systematic Study: Looking at relationships, attempting to attribute causes and effects, and
drawing conclusions based on scientific evidence (Provide means to predict behaviors).

 Evidence-Based Management (EBM): The basing of managerial decisions on the best

available scientific evidence.

 Intuition: A gut feeling not necessarily supported by research.

 Disciplines that contribute to OB

Organizational behavior is an applied behavioral science built on contributions from a number of
behavioral disciplines, mainly psychology and social psychology, sociology, and anthropology
and Political Science.
 Psychology: The science that seeks to measure, explain, and sometimes change the behavior of
humans and other animals.
 Social Psychology: An area within psychology that blends concepts from psychology and
sociology and that focuses on the influence of people on one another.
 Sociology: The study of people in relation to their fellow human beings, social environment or
culture.
 Anthropology: The study of societies to learn about human beings and their activities.
contingency variables Situational factors: variables that moderate the relationship between two
or more variables.
 Political Science: The study of the behavior of individuals and groups within a political
environment.

 Challenges and Opportunities for OB

Today’s challenges bring opportunities for managers to use OB concepts. It is the work of the
managers to deal with challenges and turn them into new opportunities.

 Responding to Economic Pressures: It is not easy to manage employees in all situations.

Managing employees well when times are tough is just as hard as when times are good. OB
suggests that in good times, understanding how to reward, satisfy, and retain employees is at a
premium. In bad times, issues like stress, decision making, and coping come to the fore.

 Globalization to Respond: Organizations are no longer constrained by national borders, world

become global village.

 Increased foreign assignment: Transferred to your employer’s operating division in another

country, Once there, you’ll have to manage workforce, aspiration from employees, and attitudes
from those you are used to back home
 Working with different people: Working with bosses, peers and other employees who were
born and raised in different culture, to work effectively with them you’ve to understand how
their culture, geographic and religion have shaped them.
 Coping with Anti-capitalism backlash: “Soak the rich” means fine should be charged with
respect of income you earn. Managers at global companies have come to realize that economic
values are not universally transferable, need to modify by managers to reflect economic values
in those countries they’re working.
 Overseeing Movement of jobs to countries with low cost labor: In a global economy, jobs
tend to flow to places where lower cost provide business firms with a comparative advantages.
 Managing people During the war on terror: An understanding of OB topics such as emotions,
motivation, communication and leadership can help managers to deal more effectively with their
employees’ fear about terrorism.

 Managing workforce diversity: The people in organization are becoming heterogeneous

demographically, Workforce diversity= whereas globalization focuses on differences between
people from different countries, mix of people in terms of gender, age, race, and sexual
orientation.
 Workforce diversity: The concept that organizations are becoming more heterogeneous in
terms of gender, age, race, ethnicity, sexual orientation, and inclusion of other diverse groups.

 Improving Customer service: OB can contribute to improving an organization’ performance

by showing that how employees’ attitude and behavior are associated with customer satisfaction.
 Improving people skills: Designing motivating jobs, how creating effective teams, techniques
for improving interpersonal skills.

 Stimulating innovation and change: Victory will go the organization the maintain their
flexibility, continually improve their quality and beat their competition in market place. An
organization’s employees can be major block in change, the challenge to the manager to
stimulate their creativity and tolerance for change.

 Coping with Temporariness: Survival for the organization, is need to move fast and flexible
and innovative in their products, jobs are redesigned, task are done by flexibility, trained old
employees with new technology, better understanding of change, overcome resistance to change,
create organizational culture.

 Working in network organization: Global working through one link i.e. INTERNET,
technology changes the people to work together and communicate at thousand miles, people can
work from their home and non office locations.

 Helping employees Balance work-life conflicts: Flexible Working hours, reporting time,
creating opportunities for employees, job security, design workplace and jobs.

 Creating positive Work Environment: Human strength, vitality, right person appointed at
right place, effort on what good for organization.

 Improving Ethical Behavior: Manager shouldn't place an order on which subordinate don’t
agree, Define clearly the right and wrong conduct,
 Fair policy and appropriate system,
 Increase confidence and trust over organization,
 Have some logic against order you place to employees,
 Maintain the ethical behavior with colleagues.

 OB Model

 Model: An abstraction of reality. A simplified representation of some real-world phenomenon.

 An idea we present in an abstract way.

 The foundation of the OB is Human Psychology, the Human psychology model as follows:

Input Process Output

Stimulus Brain, emotion, Behavior (Action,

Senses feeling, memory words, silence)

 Inputs are the variables like personality, group structure, and organizational culture that lead to
processes.

 Processes Actions that individuals, groups, and organizations engage in as a result of inputs and
that lead to certain outcomes.

 Outcomes are the key variables that you want to explain or predict, and that are affected by
some other variables.
 There are 3 levels in OB Model, Individual level, Group level and Organizational level.

 Outcome components of each level:

 Individual Level:
 Attitudes and Stress: Employee attitudes are the evaluations employees make, ranging
from positive to negative, about objects, people, or events.
 Task performance: The combination of effectiveness and efficiency at doing your core job
tasks.
 Citizenship behavior: Discretionary behavior that contributes to the psychological and
social environment of the workplace.
 Withdrawal behavior: The set of actions employee take to separate themselves from the
organization.

 Group Level:
 Group cohesion: The extent to which members of a group support and validate one another
while at work.
 Group functioning: The quantity and quality of a work group’s output.

 Organizational Level:
 Productivity: The combination of the effectiveness and efficiency of an organization.
 Effectiveness: The degree to which an organization meets the needs of its clientele or
customers.
 Efficiency: The degree to which an organization can achieve its ends at a low cost.
 Organizational survival: The degree to which an organization is able to exist and grow
over the long term.
 Importance of Interpersonal Skills

 1980’s business school curricula, emphasized the technical aspects of management, economics,
accounting, finance, and quantitative techniques. Less attention to human behavior and people
skills.

 From last past three decades, realize the role of understanding human behavior-added
to many curricula.

 Your observation probably that all people in organization are not rational, generally their
behaviors are unpredictable-you probably have not had the tools to make these observations
systematically. This is where organizational behavior come into play.

 There are Few Absolutes in OB

 Laws in the physical sciences-generalizeable.

 Laws in the behavioral sciences-limited generalizibiity, “God gave all the easy problems to the
physicists.”
 Human beings are complex, and are not alike-limited simplicity, accuracy, and generalizabilty.
 But reasonably accurate explanation of human behavior can be made.
 In OB, few, if any, simple explanation.
 OB concepts reflects situational or contingency conditions.

Chapter # 02 Diversity in Organizations

 Diversity: Everyone is different from one another.
 The concept of diversity encompasses both acceptance and respect. It means understanding that
each individual is unique and recognize our individual differences.
 These can be along the dimensions of: Race, Ethnicity, Age, Gender, Physical Abilities,
Religious Beliefs , Sexual orientation or other ideologies.

 Workforce diversity is the collective mixture of employees' differences and

similarities (including individual characteristics, values, beliefs, experiences, backgrounds,
preferences and behaviors) working in an organization.
 Diversity in Workplace: Managers sometimes forget they need c to recognize and capitalize
on individual differences to get the most from their employees.

 Levels of Diversity
1. Surface-Level Diversity: Differences in easily perceived characteristics, such as gender, race,
ethnicity, age or disability, that do not necessarily reflect the ways people think or feel but that
may activate certain stereotypes.
 Diversity on the basis of demographic characteristics. These characteristics are easily
observed.

2. Deep-Level Diversity: Differences in values, personality, and work preferences that become
progressively more important for determining similarity as people get to know one another better.
 These characteristics are known through interaction. (Emotional level connectivity)
 Recognizing Stereotypes and Understanding How They Function in Organizational
Settings

 Discrimination: Noting of a difference between things; often we refer to unfair discrimination,

which means making judgments about individuals based on stereotypes regarding their
demographic group.
 Usually when we talk about discrimination, though, we mean allowing our behavior to be
influenced by stereotypes about groups of people. Rather than looking at individual
characteristics, unfair discrimination assumes that everyone in a group is the same.

 Forms of Discrimination

Types of Discrimination Definition

1. Discriminatory “..deny equal opportunity to perform or unequal rewards
policies or practices for performance.”
“Unwanted sexual advances...that create a hostile or
2. Sexual Harassment
offensive work environment.”
3. Intimidation “Overt threats or bulling...”
4. Mockery and Insults “Jokes or negative stereotypes...”
“Exclusion of certain people from job opportunities...;
5. Exclusion
can occur unintentionally.”
6. Incivility “Disrespectful treatment...”

 Diversity is a broad term, and the phrase workplace diversity can refer to any characteristic that
makes people different from one another.

 Identifying key biographical characteristics and describing their relevance to O.B.

 Biographical Characteristics: Personal characteristics such as age. gender, race, and length of
tenure that are objective and easily obtained from personnel records. These characteristics are
representative of surface-level diversity.

1. Age is an increasingly relevant characteristic as the workforce is aging. Older workers bring
with them a wealth of knowledge and experience, but the perception is that productivity often
declines with age.

2. Sex (gender) in the workplace, it has been found that there are very few differences between
men and women that impact job performance. However, women, especially those with pre-
school age children, do prefer flexible work schedules and will seek an employer who offers
options in their schedules.

3. Race and Ethnicity offers little explanation for differentials in workplace outcomes. It has been
shown, however, that people in the workplace do identify more with people like themselves so in
some cases there may be opportunities given to people based on the fact that they are like their
supervisor.

4. Disability: A person with a disability is one who has a physical or mental impairment that limits
one or more major life activities. The Americans with Disabilities Act of 1990 requires
employers to make “reasonable accommodation” for disabilities.
5. Tenure (work experience) refers to the length of time people have been on the job and is tied to
seniority.

6. Religion may also impact work outcomes due to religious restrictions, such as dress and
grooming.
7. Sexual Orientation and Gender Identity often referred to as transgender (LGBT) employees,
this topic encompasses those individuals who change genders. They are not protected by federal
law and as a result they are handled differently by most employers.

 Employees or people should be discriminate on the basis of their ability rather than their
biological characteristics.
 Fair discrimination is based upon peoples’ abilities, when peoples are discriminate on the basis
of the ability it is considered as fair discrimination.

 Ability is an individual's current capacity to perform the various tasks in a job. Overall abilities
are essentially made up of two sets of factors: intellectual and physical.
 Factors of Abilities:
1. Intellectual Abilities: The capacity to do mental activities such as thinking. reasoning, and
problem solving. Most societies place a high value on intelligence since people with a
higher level of intellectual abilities are more likely to emerge as leaders of groups.

 General Mental Ability: An overall factor of intelligence, as suggested by the positive

correlations among specific intellectual ability dimensions. (Ex: IQ)
 2. Physical Abilities: The capacity to do tasks that demand stamina, dexterity, strength, and
similar characteristics. There are three main categories of physical ability – strength,
flexibility and other characteristics.

 The Role of Disabilities

The importance of ability at work obviously creates problems when we attempt to formulate
workplace policies that recognize diversity in terms of disability status. As we have noted,
recognizing that individuals have different abilities that can be taken into account when making
hiring decisions is not problematic. However, it is discriminatory to make blanket assumptions about
people on the basis of a disability. It is also possible to make accommodations for disabilities.

 Implementing Diversity Management Strategies

 Diversity Management: The process and programs by which managers make everyone aware
of and sensitive to the needs and differences of others.
 Diversity Management is the strategy or policy to maintain the diversity in the organization, it
include quota system in order to counter the discrimination. Such as, quota for disables,
minorities and females.
 Organizations offer these programs to promote their image with the inclusion of diversification
policies.

 Why we need diversification?

 If there is many differences and discrimination happening in the organization then why we need
diversification why not employ all people from same demographic group?
 Why organizations take this risk ?
 The answer is due to deep level diversity all other demographic characteristics or factors become
secondary.
 Primary factors for diversification are deep level diversity and the secondary factors for
diversification are surface level diversity.
 Diversity is very necessary for an organization to achieve it's goal.
 These above reasons prove that why diversity is needed in the organizations.
 Organizations find people who has same deep level diversity in order to work smoothly and
achieve their goals.

 Here are the some basis on which hiring take place in an organization.
 Quota for under representative demographic groups.
 Fair selection process for the employment on the basis of the ability.
 An effective selection process will improve the fit between employees and job requirements.

 Here is an example, if a employee has the same personality as his supervisor then there is
possibility that he will be the next supervisor or take a carrier advancement.

 Here is another example, if 99% men are working in an organization and 1% women then there
is the possibility that 1% women will leave the organization due to higher percentage
of male employees.

 Attracting, Selecting, Developing, and Retaining Diverse Employees

Point is to enhance representation of specific underrepresented groups in the workforce. Managers
who hire need to value fairness and objectivity and maintain a bias-free hiring so that their
employees will appreciate their jobs more, causing a lesser turnover.

 Diversity in Groups: When people work in groups, they need to establish a common way of
looking at and accomplishing the major tasks, and they need to communicate with
one another often.

 Effective Diversity Programs

Effective, comprehensive workforce programs encouraging diversity have three distinct components:

1. First, they teach managers about the legal framework for equal employment opportunity and
encourage fair treatment of all people regardless of their demographic characteristics.

2. Second, they teach managers how a diverse workforce will be better able to serve a diverse market
of customers and clients.

3. Third, they foster personal development practices that bring out the skills and abilities of all
workers, acknowledging how differences in perspective can be a valuable way to improve
performance for everyone.

 Managerial Implications and Summary

This chapter examines the issue of diversity in organizations by focusing on three areas of
concern…biographical characteristics, ability and diversity programs themselves. These three areas
provide a foundation for building an understanding of the effects that diversity has or organizations
and the people that comprise them. By acquiring an understanding of these issues, a manager can be
a more effective leader achieving greater outcomes because of the unifying effects of diversity
applications.
 Diversity programs includes emphasis on the areas of recruitment, selection, and retention of
employees. Strong diversity programs will ensure that employees fit the organization and its job
requirements to provide a basis for more effective job satisfaction and productivity.

 In order to accomplish this, the diversity management in the organization must by a commitment
of all levels of management and across all functions of the organization. Lead by example to get
the best from your organizational situation.