Contents

1. Organizational Behavior: ............................................................................................................................. 2

2. Major behavioral science disciplines that contribute to OB. .................................................................. 3
2.1 Psychology: ............................................................................................................................................ 4
2.2 Social Psychology: ................................................................................................................................. 4
2.3 Sociology:................................................................................................................................................ 4
2.4 Anthropology:........................................................................................................................................ 5
Challenges and Opportunities for OB: ............................................................................................................. 5
1. Responding to Economic Pressures ....................................................................................................... 5
2. Responding to Globalization ................................................................................................................... 6
3. Managing Workforce Diversity .............................................................................................................. 6
4. Improving Customer Service .................................................................................................................. 6
5. Improving People Skills ........................................................................................................................... 6
6. Stimulating Innovation and Change ...................................................................................................... 7
7. Coping with Temporariness .................................................................................................................... 7
8. Working in Networked Organizations .................................................................................................. 7
9. Helping Employees Balance Work–Life Conflicts ............................................................................... 7
10. Creating a Positive Work Environment ............................................................................................. 8
Developing an OB Model: .................................................................................................................................. 8
1. Inputs: ......................................................................................................................................................... 9
2. Processes ..................................................................................................................................................... 9
3. Outcomes.................................................................................................................................................... 9
 1. Organizational Behavior:

Organizational behavior (often abbreviated OB) is 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.

 Organizational behavior is a field of study, meaning that it is a distinct area of expertise with a
common body of knowledge.

What does it study?

It studies three determinants of behavior in organizations:

 Individuals,
 Groups, and
 Structure.

In addition, OB applies the knowledge gained about individuals, groups, and the effect of
structure on behavior in order to make organizations work more effectively.

 OB includes the core topics of

 Motivation,
 Leader behavior and power,
 Interpersonal communication,
 Group structure and processes,
 Learning,
 Attitude development and perception,
 Change processes,
 Conflict,
 Work design, and
 Work stress.
 2. Major behavioral science 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.
Psychology’s contributions have been principally at the individual or micro level of analysis, while
the other disciplines have contributed to our understanding of macro concepts such as group
processes and organization. Neuroscience has contributed to our understanding at the individual
and group level of analysis.
2.1 Psychology:

 Psychology seeks to measure, explain, and sometimes change the behavior of humans and
other animals.

 Those who have contributed and continue to add to the knowledge of OB are_
 Learning theorists,
 Personality theorists,
 Counseling psychologists, and, most important,
 Industrial and organizational psychologists.

 Early industrial/organizational psychologists studied the problems of fatigue, boredom, and

other working conditions that could impede efficient work performance.

2.2 Social Psychology:

 Social psychology, generally considered a branch of psychology, blends concepts from both
psychology and sociology to focus on peoples’ influence on one another.

 One major study area is change —how to implement it and how to reduce barriers to its
acceptance.

 Social psychologists also contribute to measuring, understanding, and changing attitudes;

identifying communication patterns; and building trust. Finally, they have made important
contributions to our study of group behavior, power, and conflict.

2.3 Sociology:

 While psychology focuses on the individual, sociology studies people in relation to their social
environment or culture.
 Sociologists have contributed to OB through their study of group behavior in organizations,
particularly formal and complex organizations.
 Perhaps most important, sociologists have studied organizational culture, formal organization
theory and structure, organizational technology, communications, power, and conflict.
 2.4 Anthropology:

 Anthropology is the study of societies to learn about human beings and their activities.

 Anthropologists’ work on cultures and environments has helped us understand differences

in fundamental values, attitudes, and behavior between people in different countries and
within different organizations.

 Much of our current understanding of organizational culture, organizational environments,

and differences among national cultures is a result of the work of anthropologists or those
using their methods.

Challenges and Opportunities for OB:

Understanding organizational behavior (OB) has become increasingly critical for managers as they
navigate a rapidly changing business environment. The landscape of organizations is evolving due to
several factors, including demographic shifts, globalization, economic pressures, and technological
advancements. These changes present both challenges and opportunities for managers to effectively
utilize OB concepts. Below are some of the critical issues where OB can provide valuable insights or
solutions:

1. Responding to Economic Pressures

 The global economic landscape can fluctuate dramatically, as seen during the 2008 recession.
 During tough economic times, effective management is crucial. Managers must navigate
layoffs, pay cuts, and employee morale, making the difference between an organization’s
survival and failure.
 For example, companies like Enterprise Rent-A-Car and Gentex Corp, which previously prided
themselves on never laying off employees, had to make tough decisions during the 2008-2009
recession.
 In such times, OB approaches shift focus from rewarding and retaining employees to managing
stress, decision-making, and coping mechanisms.
2. Responding to Globalization

 Globalization has removed many of the barriers between countries, creating a global village
where organizations operate across borders.
 Managers face increased foreign assignments and must manage diverse workforces with
different cultural needs and aspirations.
 Companies like McDonald’s, Disney, and Coca-Cola have learned that economic values are not
universally transferable, and management practices need to reflect the cultural values of the
countries in which they operate.
 Managers must adapt their styles to manage effectively across different cultures, which is where
OB provides essential guidance.

3. Managing Workforce Diversity

 Workforce diversity is a significant challenge as organizations must adapt to an increasingly

varied employee base.
 This diversity spans gender, race, ethnicity, age, sexual orientation, and physical abilities.
 For example, the U.S. labor force has seen a significant increase in female workers and is
expected to see more racial and ethnic diversity by 2050.
 Managers must learn how to leverage these differences for competitive advantage, recognize
individual and cultural differences, and foster cultural awareness without falling into political
correctness.

4. Improving Customer Service

 In today’s service-oriented economies, customer service is paramount. A company’s success

often hinges on the quality of its customer interactions.
 For instance, American Express turned a potentially negative customer experience into a
positive one by delivering a new card to a customer within hours.
 Organizations like Patagonia emphasize the importance of customer service as a core
responsibility.
 OB helps managers understand the link between employee behavior and customer satisfaction,
enabling them to create customer-responsive cultures.

5. Improving People Skills

 OB provides managers with the tools to enhance their people skills, which are crucial for
motivating employees, improving team dynamics, and creating effective communication.
  As organizations become more complex, the ability to understand and predict human behavior
in the workplace becomes invaluable.

6. Stimulating Innovation and Change

 Organizations must foster innovation and change to remain competitive.

 Historical examples of companies that failed to adapt, such as Montgomery Ward and
Woolworth, underscore the importance of staying flexible and responsive to market demands.
 Managers must encourage creativity and tolerance for change among their employees, and OB
offers strategies and techniques to support these efforts.

7. Coping with Temporariness

 The modern work environment is characterized by change and temporariness.

 Employees must continually update their skills, and organizations must remain agile to survive.
 OB can help managers and employees cope with the unpredictability and create cultures that
embrace change rather than resist it.

8. Working in Networked Organizations

 Advancements in technology have led to the rise of networked organizations, where employees
collaborate across vast distances.
 Managers in these environments must develop new skills for motivating and leading virtual
teams, making decisions collaboratively online, and maintaining organizational cohesion.
 OB provides insights into managing these unique challenges.

9. Helping Employees Balance Work–Life Conflicts

 The blurring of lines between work and personal life has led to increased stress and conflict for
employees.
 Global organizations and advances in communication technology mean employees are often
“on call” 24/7.
 Additionally, longer work hours and the rise of dual-career couples make it difficult for
employees to balance work and personal responsibilities.
 OB offers strategies for creating work environments that support work–life balance, which is
crucial for attracting and retaining top talent.
10.Creating a Positive Work Environment

 Despite competitive pressures, some organizations are focusing on creating positive work
environments as a competitive advantage.
 Leaders like Jeff Immelt and Jim McNerney emphasize the importance of passion and positivity
in leadership, even during challenging times.
 OB research increasingly explores how positive work environments contribute to employee
well-being and organizational performance.

In summary, OB provides managers with essential tools and insights to navigate the complex
challenges of today’s business world. By understanding and applying OB concepts, managers can turn
these challenges into opportunities for growth, innovation, and sustained success.

Developing an OB Model:

 A model is an abstraction of reality, a simplified representation of some real world phenomenon.

 OB model proposes three types of variables (inputs, processes, and outcomes) at three levels of
analysis (individual, group, and organizational).
 The model proceeds from left to right, with inputs leading to processes and processes leading
to outcomes.
 Notice that the model also shows that outcomes can influence inputs in the future.
1. Inputs:

 Inputs are the variables like personality, group structure, and organizational culture that lead
to processes.
 These variables set the stage for what will occur in an organization later.
 Many are determined in advance of the employment relationship. For example, individual
diversity characteristics, personality, and values are shaped by a combination of an
individual’s genetic inheritance and childhood environment.
 Group structure, roles, and team responsibilities are typically assigned immediately before or
after a group is formed.
 Finally, organizational structure and culture are usually the result of years of development and
change as the organization adapts to its environment and builds up customs and norms.

2. Processes

 If inputs are like the nouns in organizational behavior, processes are like verbs.
 Processes are actions that individuals, groups, and organizations engage in as a result of inputs
and that lead to certain outcomes.
 At the individual level, processes include emotions and moods, motivation, perception, and
decision making.
 At the group level, they include communication, leadership, power and politics, and conflict
and negotiation.
 Finally, at the organizational level, processes include human resource management and change
practices.

3. Outcomes

 Outcomes are the key variables that you want to explain or predict, and that are affected by
some other variables.
 What are the primary outcomes in OB? Scholars have emphasized individual-level outcomes
like attitudes and satisfaction, task performance, citizenship behavior, and withdrawal
behavior.
 At the group level, cohesion and functioning are the dependent variables.
 Finally, at the organizational level we look at overall profitability and survival.