ORGANIZATIONAL

BEHAVIOR.
INTRODUCTION
EVGENIY VICTOROVICH GENKIN
Evgeniy Victorovich Genkin

Expert and lecturer of PJSC "Gazprom".

Working experience - more than 20 years.
Author of several educational programs for
leaders and senior managers.
Author of MBA programs.

Certified lecturer, International

Management Teachers Academy.
Project manager, IPMA.

Contacts:
[email protected]
www.facebook.com/evgeny.genkin
MAIN RULES
ALLOWED NOT ALLOWED
- feel comfortable - response the phone calls,
- response the phone calls out of the SMS etc. inside the class
class - sleep during the lectures
- work and discuss in the class and workshops :)
- ask questions
- enter and to exit any time without
warning for any reason
- be late
- respect each other (one speaks etc.)
GETTING AN ASSESSMENT
 Report (project team work) 1…10 points
Missing your line with report without 5 days notice -10 points!
 Giving the Case solution in the class 1…5 points
 Business game up to 5 points
 Scientific paper (once per course) 1…15 points.

 The goal is 100 points.

Good report
 Interesting
 Using presentation
 10-15 minutes
 Using examples
INTRODUCTION
THE COURSE OF ORGANIZATIONAL
BEHAVIOR
STRUCTURE OF LECTURE 1
1. STRUCTURE OF THE COURSE
2. DEFINITIONS
3. CHALLENGES THOSE ARE FACED BY
ORGANIZATIONS TODAY THAT HAVE MADE IT
NECESSARY FOR MANAGERS TO STUDY OB
4. ORGANIZATIONAL BEHAVIOR IN THE WORLD
OF OTHER DISCIPLINES
1. Motivation

2. Individual and personality

3. Group and group decisions

4. Leadership and power

5. Conflicts and negotiations

6. Organizational culture
BOOKS
3 DEFINITIONS OF ORGANIZATIONAL
BEHAVIOR (1)
 Organizational behavior is
defined as actions and
attitudes of individuals and
groups toward one another
and toward the organization,
and their effect on the
organization's functioning
and performance.
3 DEFINITIONS OF ORGANIZATIONAL
BEHAVIOR (2)
 Organizational behavior
is the study of human
behavior, attitudes and
performance in
organizations.
3 DEFINITIONS OF ORGANIZATIONAL
BEHAVIOR (3)
Organizations are social inventions
for accomplishing common goals
through group effort. Organizational
behavior is concerned with the
attitudes and behaviors of
individuals and groups in
organizations and can be understood
in terms of three levels of analysis:
the individual, the group, and the
organization.
ORGANIZATIONAL BEHAVIOR IN SHORT
VIDEO
ORGANIZATIONAL BEHAVIOR
 ORGANIZATION
+
BEHAVIOR
IS THIS THE WORLD WE CREATED? ©
THE WORLD OF
ORGANIZATIONS
THE ORGANIZATION IS
 A GROUP OF PEOPLE REGULARY WORK
TOGETHER TO ACHIEVE COMMON GOALS
WHY ORGANIZATIONS ARE CREATED?
 Organisations exist because groups of people working together can
achieve more than the sum of the achievements which the individuals in
the organisation could produce when working separately. For example,
one person might struggle all day to carry a piano upstairs, whereas a
team of four people, each taking one corner, may need to put in much less
than a quarter of the effort of one person to complete the task (Coates et
al., 1996, p. 19). Although such cooperation is beneficial, if individuals
pull in different directions, the result is counter-productive. Thus
coordination is necessary and this is a fundamental role of management,
as will be discussed in a later section of this session.
CHALLENGES THOSE ARE
FACED BY ORGANIZATIONS
TODAY THAT HAVE MADE IT
NECESSARY FOR MANAGERS
TO STUDY OB
Challenges facing organizations
1. Improving quality and productivity
More and more managers are confronted with the challenge of having to
improve their organizations productivity and the quality of their products and
services.
In improving quality and productivity, they are implementing programs like
TQM and Business Process Reengineering (BPR)
2. Improving people skills/interpersonal skills
OB gives the manager the opportunity to completely understand the behavior,
how to change the behavior and generally improve interpersonal skills
OB helps both practicing managers as well as potential managers to develop
skills that can be used in their job
Challenges facing organizations (cont…)
3. Managing workforce diversity
 Workforce diversity has important implication for management –
managers will need to shift their philosophy form treating everyone
alike to recognizing differences and responding to them in ways that
will ensure employee retention and greater productivity.
4. Responding to Globalization
 The world today is continuous becoming “global village”.
Organizations no longer constraint themselves to national boarders.
 OB provides us with fundamental concepts to enable us focus on how
cultural differences might require managers to modify their managerial
practices
Challenges facing organizations (cont…)
5. Empowering people
 Managers are empowering employees.

 They have to learn how to give up control and employees have

to learn how to take up responsibility for their work.
6. Stimulating innovativeness and changes
 This implies that today successful organizations must stimulate
innovation and get the art of change, or they become died.
 Victory will go to organization that maintain flexibility,
continually improve quality and beating competition in the
market place
Challenges facing organizations (cont…)
7. Dealing with employees’ loyalty
Today, organizations seek to be lean by moving
to low cost regions, closing the less profitable
branches, and replacing permanent employees
with temporary ones.

These kinds of changes result in a decline of

employee loyally. Employees perceive that their
employers are less committed to them and as a
result, they result to being committed to their
employer

The manager therefore needs to find the ways to

motivate workers who feel less committed to
their employers, but at the same time maintain
organizational global competitiveness.
Challenges facing organizations (cont…)
8. Machine (artificial)
intelligence
AI defeated human not only
in chess but also in go, and
poker
https://www.youtube.com/wat
ch?v=jLXPGwJNLHk
Organizational behavior
 Focuses on understanding and explaining individual
and group behaviors in organizations
 Concerned with what people do in an organization and
how that behavior affects performance
 Understanding, prediction and management of human
behavior in organizations
 More micro than macro
WHY BOTHER WITH STUDYING
ORGANIZATIONAL BEHAVIOR

1. Practical application

2. Personal growth

3. Increased knowledge
1. Practical application of OB (1)
There are important practical benefits from understanding the
principles of organizational behavior:

 Development of personal styles of leadership can be guided by

knowledge of the results of studies of OB that have attempted to
relate leadership styles to situational requirements

 The choice of problem solving strategy or choice of employees’

appraisal format can be guided by an understanding of the results of
studies in the associated topic areas
1. Practical application (cont..)
 In the area of performance increasing, benefits can be gained by
applying knowledge gathered in the field of OB

 Because the environment in which the organization operates is

increasing in complexity, one must understand how to design effective
organizational structures and how to relate to individuals from different
parts of the world

 In order to deal effectively with others in organizational system

understanding of OB is required
1. Practical application (cont..)
 Attracting and developing talented individuals are 2 issues, that
are critically important to the survival and prosperity of an
organization

 Emphasis of human element instead of on technical financial and

other tangible resources often separate competing organizations
when it comes to organizational performance. This occurs
because all serious competitors in a given industry are likely to
have attained nearly the same level of technical sophistication
2.PERSONAL GROWTH

 The second reason for studying OB is the understanding

our employees, family, friends, bosses etc.
 Understanding others may also lead to greater self-
knowledge and self insight
 Such personal growth is an aspect of education that is
often cited as the greatest benefit of studying the human
arts and sciences
2. Personal growth (cont…)
 Advancement in business
 It is also important for advancement in business world – it can make a
difference when it comes to advancing beyond an entry level position.
 Entry level hiring are based largely on technical competency, such as
certification in a specialized area e.g. Bachelor’s degree, MBA etc.
 Promotions however are often based not on the level of technical competency.
 They are based on demonstrated abilities to understand and work effectively
with superiors, subordinated, clients etc.
 In short, an understanding of organizational behavior may be invaluable to
you once you have that first job and seek to distinguish yourself.
OB – when and where may be used?
 Organization
 Team
 Family
 Group
 …
“PEOPLE PROBLEMS”
 A sales manager: ‘My sales staff is constantly making errors in
quoting prices and delivering service. How can I get them to be more
customer focused?’
 A union official: ‘We no longer have members who are committed to
union values.’
 A marketing manager: ‘My employees refuse to work with the fellows
from production. They believe production managers are only
interested in output quotas and inventory control. Their poor customer
orientation is causing us severe problems in our product garanties.’
 Scope of OB (3 levels model)
Part I: The Individual Part-II The Group
• Ability & Learning • Foundation of Group Behavior
• Values, Attitudes and Job • Group and Team Work
Satisfaction • Functions of Communication
• Personality & Emotions • Basic Approaches to Leadership
• Perception & Individual Decision • Contemporary Issues in
Making Leadership
• Basic Motivation Concepts • Power and Politics
• Motivation and its Applications • Conflict and Negotiation

Part-III The Organization System

• Organizational Structure
• Work design and Technology
• HR Policies and Practices
• Organizational Culture
• Organizational Change
• Stress Management
INTRODUCTION
ORGANIZATIONAL BEHAVIOR IN THE
WORLD OF OTHER DISCIPLINES
OT vs. OB vs. HRM
 Organizational Theory
 Focuses on the organization as the unit of analysis.
Organizational attributes such as goals, technology
and culture are the subject of study.
 Organizational theory often uses an across-
organizational approach or macro perspective in
gathering new knowledge.
Human resources management
 Attempts to apply the principles of the behavioral sciences in
the workplace
 While OB is somewhat more concept oriented, HRM is more
concerned with applied techniques and behavioral
technology.
 HRM tries to provide a link between the individual and the
organization by designing and implementing systems to
attract, develop and motivate individuals within the
organization
OB approach
 OB looks at consistencies
 What is common about behavior, and helps predictability?
 OB is more than common sense
 Systematic study, based on scientific evidence
 OB has a low number of absolutes
 Considers behavior in context
Contribution Disciplines to OB
Contribution Disciplines to OB
Contribution Disciplines to OB
TEAM WORK (THEMES 1)
 NEW CHALLENGES AND MANAGEMENT EDUCATION
 ACTUAL PROBLEMS OF MANAGEMENT
 HISTORICAL FOUNDATIONS OF MODERN ORGANIZATIONAL
BEHAVIOR: HAWTHORNE RESEARCHES
 PHILOSOPHY OF INDUSTRIAL MANAGEMENT
 PHILOSOPHY OF POST-INDUSTRIAL MANAGEMENT
 POSITIVE SOCIO-PSYCHOLOGICAL CLIMATE IN THE
ORGANIZATION
INTRODUCTION
OB – HISTORICAL
PERSPECTIVE
SCIENTIFIC MANAGEMENT (1900 – 1945)
 First developed by Fredrick W. Taylor (1856 – 1915)
 Taylor aimed at making management a science
abased on a well recognized, clearly defined and
fixed principles
 He replaced the rule of the thumb method with
scientific management
Taylors core values
 The rule of:
 Reason
 Improved quality
 Lower costs
 Higher wages and higher output
 Labor-management cooperation, experimentation
 Clear tasks and goals
 Feedback, training, mutual help and support, stress reduction,
 Careful selection and development of people.
Taylors core values
 He was the first to present a systematic study of
interactions among job requirements, tools,
methods, and human skill, to fit people to jobs both
psychologically and physically, and to let data and
facts do the talking rather than prejudice or
opinions
Taylor’s ideas
 He advocates the use of
 Observation
 Measurement
 Experimentation
 Analysis
 Rationality
 Reasoning
 As the main instruments for developing managerial systems
Taylor principles
 Father of scientific management
 Principles
 Develop a science for each element of work
 Select the best worker for each task
 Train the worker in the prescribed method
 Develop a spirit of cooperation between management and labor
 Divide the work between management and labor into equal shares,
each doing what they do best
The basic components of scientific management as
propounded by Taylor
 Determination of the standard of performance
 Functional mstership
 Responsibilities of managers
 Differential piecework system of wage payment
 Mental revolution
The basic components of scientific management as
propounded by Taylor
 Determining the standards of performance
 Taylor introduced the “time and motion study” to
identify exactly how long it takes to do a task and
identify and eliminate wasteful motions
 Functional mastership
 Here Taylor called for separation of planning from doing
where the functional foreman (specialist) did the
planning of various aspects of work
The basic components of scientific management as
propounded by Taylor
 Responsibility and management
 Managers should accept responsibility for planning, directing
and organizing
 Managers should perform these functions in a scientific way –
i.e. analyse all operations and develop scientific methods of
doing them
 Workers should be scientifically selected and trained
 Managers should heartily cooperate with workers to ensure
that work is done according to scientifically selected managers
The basic components of scientific management as
propounded by Taylor
 Differential piece work system of payment – to ensure that workers turn
out optimal production – so that workers who work hard get more

 Mental revolution
 Taylor held that the technique of determining work standards, delimiting
wasteful operations and differential piece rate system of wage payment
should benefit the worker in form of higher wage payment and the
employer in form of higher production and this would result to a “mental
revolution” between ,management and workers
 They would develop a cooperative rather than antagonistic attitude
towards each other
Criticism of Tailors Study
 Saw man as an economic being - man is only
motivated by money
 Saw that man can be programmed as a machine –
in the development of standards of performance
The Hawthorne Studies (1924 – 1945)
 The Hawthorne Experiments
 The experiments were carried out between 1927 and 1933 at
the Chicago Hawthorne plant of the Western Electric Company.
Four studies were carried out namely:
 The illumination studies
 The Relay Assembly Test Room Studies
 The interviewing Program
 The Bank Wiring Room studies

The illumination studies
 These studies were expected to determine the
relationship between the level of illumination and
worker’s productivity.
 It was expected that worker’s productivity would
increase with increasing levels of illumination.
 The studies failed to prove any relationship between
worker’s productivity and level of illumination
Relay assembly test room studies
 These studies were carried out to determine the relationship between worker’s
productivity and improved benefits and working conditions.
 Manipulated factors of production to measure effect on output:
 Pay Incentives
 Length of Work Day & Work Week
 Use of Rest Periods
 Company Sponsored Meals

 The studies found out that there was no cause – and – effect relationship
between working conditions and output.
 Rather, there were other factors that affected worker’s output such as
his/her attitudes and supervisor behavior
Conclusions on Hawthorne experiments
 An industrial organization is a socio technical system. The socio part
is the human aspects that need to be taken care of in order to increase
workers’ productivity and the technical system is the physical aspects
that also need to be improved.
 Employee attitudes and morale are also important as determinants of
productivity.
 Other factors include worker’s personality and supervisor’s behavior,
leadership style also affect worker’s altitude and morale.
 A worker’s social group has a prevailing effect on his or her altitude
and productivity
Contribution

 The Hawthorne Studies have however made the following

contribution OB.
 Their finding on the importance of informal groups is also a
key to organization theory.
 Contribution on effect of job satisfaction
 Contribution in the role of leadership and style of leadership
 Their emphasis on employee altitude towards work as an
additional to other factors was a breakthrough in OB.
SITUATIONAL (CONTINGENCY) APPROACH
(1945 – PRESENT)
 Following World War II, a new approach on organizational
behavior began to develop
 Called the situational approach, it acknowledged the difficulty
of offering simple general principles to explain or predict
behavior in organizational setting
 The approach sought to specify the conditions under which we
can expect to find certain relationships.
 As such it represented a search for the factors that would help
in predicting and explaining behavior
 Organizational behavior researchers who subscribe to the situational approach
believe that employee behavior is too complex to be explained by only a few
simple and straight forward principles. Instead, they seek to identify the
factors that are jointly necessary for a given principle to hold

 Contingency researchers recognize the interdependency of personal and

situational factors in determination of employee behavior

 therefore if you ask what is the best way for a manager to behavior –
autocratically or democratically, the contingent researcher will consider issues
like subordinates expectations and preferences and the situations at hand,
cultural differences, etc
CULTURE –QUALITY MOVEMENT (1980 –
PRESENT)
 TQM is a corporate culture characterized by increased customer satisfaction
through continuous improvements, in which all employees actively participate

 Two terms that gained quick interest among managers and organizational
researcher’s wee organizational culture and quality improvement.

 The authors of several books in the early 1980s – Peter Waterman ( In Search
of Excellence), Deal and Kennedy ( Corporate Culture) and others focus on
how to build a strong set of shared positive values and norms within a
corporation (that is a strong corporate culture) while emphasizing quality
service, high performance and flexibility.
Organizational excellence, core values and core competencies

 First step in building organizational excellence is building

quality into people.
 Organizational excellence is a result of building quality into
the following 4Ps:
 people;
 partnership;
 processes of work; and
 products/service products.
Building quality into people
 The first priority of any quality strategy must be to build
quality into people, which is the essential foundation and
necessary catalyst for improving partnerships, processes and
products.
 The quality strategy relating to building quality into people
should be designed to strengthen two essential parts:
 Core Values (CV) and
 core competencies (CC).
Core Values (CV)
 The CV are the non-changeable spiritual values such as honesty, loyalty, integrity,
goodness, trust, justice, respect, humbleness, dignity, etc. which are independent of
culture, time, place, race and age.

 If CV are ignored in the quality strategy the company will not be able to utilize the CC,
which they try to build into the people.
 Various managerial efforts seem to have small effect if these values are lacking
between employees and between management and employees.
 Research shows that trust is a prerequisite for communication and dialogue, building
people relationships, building competencies and capabilities and for building a co-
operative culture.
 Research also shows that procedural fairness and procedural
justice in the decision making process are associated with
increased motivation and commitment toward the decisions
made among employees.
 Research show furthermore that even though the employees

have the opportunity to participate in the decision-making

process, they will get negative motivational effects in form of
frustration if their voices have not been respected in the process.
 Recent research results carried out indicate strongly
that one of the most critical factors for attaining
employees' motivation and commitment is related
to personal CV.
 In short, it seems that CV are very critical
motivating factors of human beings.
Core competencies (CC)
 The CC, which comprise the capabilities needed to satisfy
human's mental needs, can at the lowest level be subdivided
into two main areas:
 emotional competencies (EC); and
 intellectual competencies (IC).
 Some research has shown that that the strongest determinant
for human success is emotional competence or intelligence
competencies
Core competence - EC
 And according to recent research the IC can
explain less than 10 percent of a company's
success, while the EC can explain 90 percent of a
company's success.
 EC are human capabilities to feel, to see, to listen,
to aware, to sense, to taste, etc
Emotional competencies/emotional
intelligence
 Do you know anybody who is extremely bright and yet
cannot put life together?
 That very bright student but failed in university?
 That very bright employee but performance is wanting?
 Scientist over years have discovered another type of

intelligence which is not IQ but EQ

 EQ is essential for survival
What EC involves
 EQ/EC involves a combination of competencies which
allow a person to:
 Be aware of own emotions
 Understand own emotions
 Be in control of own emotions
 Recognize and understand emotions of others and
 Use that knowledge for their own success and success of others
Core competence - EC
 Include various types of interpersonal skills such as
techniques for emphatic listening, dialogue, discussion, etc.
 People who do not posses the EC will get serious problems
in understanding other people.
 Thus, EC are especially critical issues, which have
tremendous impacts in building interpersonal relationships.
 Categories of EC
Category Description competence
Self awareness to know one's inner feeling, Emotional self awareness
preference, intuition as well as
one's strengths and weaknesses Accurate self assessment

Having realistic understanding of Self confidence

our own abilities and strong sense
of self confidence
Component description Competencies
Self regulatory/ •To be able to control one's own feeling, •Self control
management . impulse, stress and changing environment
•Conscientiousness
•Handling our own emotions so that they do
not interfere but facilitate • Trustworthy

•Having ability to defer gratification in •Adaptability

pursuit of goals
•Achievement
•Recovering well from emotional stress
•Orientation

•Initiative
component Description Competencies
Social awareness •Sensing what others are feeling Empathy

•Being able to understand situation Organizational awareness

from other peoples perspective
Service orientation
•Cultivating relationship with
diverse range of people
category description Competencies
Social skills Handling emotions in respect to Influence
other people
Leadership
Able to read intricacies of social
interactions Developing people
Able to interact in social
situations well Communication

Able to use this skill set to Change catalyst

influence, negotiate, persuade
and lead Building bonds

Team work and collaboration

Those with High level of EQ feel…. Those with Low levels of EQ feel…..

Motivation, Focus Loneliness, Fear

Friendship, Fulfillment Frustrations, guilt
Freedom, Balance Emptiness, Bitterness
Connection, Desire Instability Lethargy
Peqce of mind, Awareness Depression, Disappointment
Balance, Self control Resentment, Anger
Autonomy, Contentment Dependence, victimization
Appreciation failure
Core competence - IC
 IC are related to human capabilities, which involve
reasoning in contrast to the EC, which involve sensing
and feeling.
 These include:
 Planning and organizing, decision making, leadership , team
building skills, professionalism, relationship management,
client/ stakeholder focus, verbal/written communication,
processing work, taking initiative, adaptablity etc.
 Relating 4Ps to CV and CC
 A pre-condition for achieving organizational excellence defined as
“the 4P” (people, partnership, processes and products) is to satisfy
peoples' needs in a balanced way.
 The CC are those capabilities, which, together with the CV, are
important for satisfying peoples' spiritual and mental needs so that
business excellence can be achieved.
 CV and the EC especially are related to the first 2P, i.e. people and
partnership.

 Without focusing on the CV and the EC it will be very
difficult to achieve Excellency in the last 2P, i.e. processes
and products.
 To build quality into the last 2P IC are needed.
 The critical or core IC are those competencies, which are
needed to satisfy people's intellectual needs and at the same
time necessary to build Excellency into the organization's
processes and products.
 As an effective response to growing global competition high quality was
seen to be the result of high employee commitment and loyalty, - focusing
on people, CC and CV and do this

 High levels of employee commitment and loyalty is believed to result,

partially, from greater employee involvement,

 In some organizations, a deliberate focus can be identified that seeks to

have employees openly discuss aspects of corporate culture, and suggest
techniques for achieving a culture that emphasizes greater teamwork and
cooperation
 Advocates of culture – quality movement claim
that productivity and financial return can be
significantly enhanced by developing culture that
emphasize key values
 Presently, the evidence suggest that, properly
introduced, there are some economic advantages to
following culture-quality movement
THEORITICAL FRAMEWORK
OF OB
OB – Theoretical Framework
 Although OB is extremely complex and includes
many inputs and dimensions, three frameworks:
 The cognitive,
 Behavioristic,
 social cognitive frameworks
 Can be used to develop an overall model for OB
Cognitive Framework
 The cognitive approach to human behavior has many sources
of inputs ( the five senses)
 Cognition, which is the basic unit of the cognitive
framework, can be defined as the act of knowing an item
from information
 Under this framework, cognition precedes behavior and
constitutes input into the persons thinking, perception,
problem solving, and information processing
Edward Tolman Cognitive framework
 Although Tolman believed behavior to be appropriate
unit of analysis, he felt that behavior is purposeful, that
it is directed towards a goal
 He felt that cognitive learning consists of a relationship
between cognitive environmental cues and
expectations
 Through experimentation, he found out that a rat could
learn to run through an intricate maze, with purpose
and direction, towards goal (food)
 Tolman observed that at each point in the maze,
expectations were established – in other words, the rat
learned to expect a certain cogitative cue associated
with the choice point might eventually lead to the food
 If the rat actually received the food, the association
between the cue and the expectancy was strengthen,
and leaning occurred
 Tolman’s approach could be depicted that learning is
an association between the cue and the expectancy)
 In his laboratory experiment, he found that animals learned
to expect a certain event would follow another – for
example, animal learned to behavior as if they expect food
when a certain cue appeared.
 Thus, Tolman believed that learning consist of expectancy
that a particular event will lead to a particular consequence
 This cognitive concept of expectancy implies that the
organizms is thinking about or is conscious or aware of, the
goal.
 Thus Tolman and others espousing the cognitive
approach felt hat behavior is best explained by these
cognitions
 Applied to OB, cognitive approach has dominated
unit of analysis such as perception, personality and
attitudes, motivation, decision making and goal
setting
BEHAVIORISTIC FRAMEWORK

 The roots of behavioristic theory of human behavior can

be trace back to the work of Ivan Pavlov and John Watson
 These pioneering behaviorists stressed the importance of
dealing with observable behavior instead of the elusive
mind that had preoccupied earlier psychologist
 They used the classical conditioning experiment to
formulate the stimulus-response (S - R) explanation of
human behavior
 Both Pavlov and Watson felt that behavior could be best
understood in terms of S-R
 A stimulus elicit response
 They concentrated mainly on the impact of the stimulus and
felt that learning occurred when the S -R connection was made
 Ivan Pavlov who attributed leaning to the association or
connection between stimulus and response (S-R
 Based on Pavlov classical conditioning experiment using
dogs as subjects
 When presented with meat powder ( unconditioned stimulus)
- the dog secreted saliva (unconditioned response)
 When he merely rang a bell (neutral stimulus) the dog did
not salivate
 When meat was accompanied with the ringing of the bell
several times, then Pavlov rang the bell without presenting
the meat, the dog salivated to the bell alone
 Conclusion - that the dog has become classically
conditioned to salivate (conditioned response) to the
sound of the bell ( conditioned stimulus
 Thus classical conditioned can be defined as a process
in which a formerly neutral stimulus, when paired with
an unconditioned stimulus, becomes a conditioned
stimulus that elicit a conditioned response; in other
words, the S-R connection is learned
Example of Pavlov S - R
 Stimulus (S)  Response ®
 Is stuck by a pin  Flinches
 Is shocked by an electric
current
 Jumps/screams
 Is surprised by a loud sound
 Jumps/screams
 Is tapped below the  Flexes lower leg
kneecap
B.F Skinner
 Another psychologist whose work explains this framework is B. F.
Skinner.

 He felt that the early behaviorists helped explain respondent’s

behaviors (those behaviors elicited by stimulus) but not the more
complex operant behaviors

 In other words, the S -R approach helped explain the physical reflexes,

for examples, when stuck by a pin (S), the person will flinch ( R) or
when tapped below the kneecap (S) the Epson will extend the lower
leg ( R)
 Skinner felt that classical conditioning explains only respondent
(reflexive) behaviors. – i.e. involuntary responses that are elicited by
a stimulus
 He felt that more complex, but common human behavior cannot be
explained by classical conditioning alone.
 He noted that the greater part of the behavior of an organizm was
under control of stimuli which were effective only because they were
correlated with reinforcing consequences
 Through his research thus , skinner posited that behavior was a
function of consequences, not the classical conditioning eliciting
stimuli
 He felt that most human behavior affects, or operates on, the
environment to receive a desirable consequences.
 This type of behavior is learned through operant conditioning
 Operant conditioning is concerned primarily with learning that
occurs as a consequence of behavior, or R-S.
 It is not concerned with the eliciting causes of behavior, as
classical , or respondent, conditioning is
 The organizm has to operate on an environment (thus the term
operant conditioning) in order to receive the desirable
consequences.
 The preceding stimulus does not cause the behavior in
operant conditioning; it serves as a cue to emit the
behavior. For skinner and other behaviorists, behavior is
a function of its contingent environmental consequences
 So behavourisitic approach is environmentally based. It
posits that cognitive processes such as thinking,
expectancies, and perception may exist but are not
needed to predict and control or manage behavior
 On the other hand, Skinner found out through his
operant conditioning experiment, that the
consequences of a response could better explain
most behavior than elicit stimuli could
 He emphasized the importance of the response-
stimulus (R -S) relationship
Example of Skinners operant conditioning
 Response ®  Stimulus (S)
 Works  Paid
 Talks to others  Meets more people
 Enters a restaurant  Obtain food
 Enters a library  Finds a book
 Increases productivity  Receives merit pay
 Completes a difficult  Receives praise or a
assignment promotion
 Today operant conditioning has much greater impact on
human learning than classical conditioning
 It explain much of organizational behavior
 E.g. people go to work to feed, cloth and house themselves
and their families - working (conditioned response) is
instrumental in obtaining food, shelter and clothing
 Managers can analyse the consequences of organizational
behavior, to change the environment, and help accomplish
goals
Social cognitive Framework
 The cognitive approach has been accused of being mentalistic, and
the behavioristic approach has been accused of being deterministic.
 Social Cognitive theorists argue that the S-R model and to a lesser
degree the R –S model, are too mechanistic explanation of human
 The social cognitive approach tires to integrate the contribution so
both of these approaches
 Social cognitive theory recognizes the importance of behaviorism’s
contingent environmental consequences, but also includes
cognitive processes of self regulation
 Based on the work of Albert Bandura social learning theory
and David and Luthans, this framework proposes a social
learning approach to organizational behavior
 Social learning takes the position that behavior can best be
explained in terms of a continuous reciprocal interaction
among cognitive, behavioral and environmental determinants.
 The persons and the environmental situations do not function
as independent units but, in conjunction with the behavior
itself, reciprocally interact to determine behavior
 Bandura explains that “it is largely through their actions that
people produce the environmental conditions that affect their
behavior in a reciprocal fashion
 The expediencies generated by behavior also partly determine
what a person becomes and can do which in turn, affects
subsequent behavior
Social cognitive theory framework
 DECISIONS AT DIFFERENT LEVELS OF
ORGANIZATIONS
7

TOP MANAGEMENT MANAGEMENT

identifying areas of strategic development and policy implementation of these functions
of the Company
Buying of assets Current operating activities of the Company

Other significant issues

 A RESPONSIBILITY
8

SHAREHOLDERS

TOP MANAGEMENT

MANAGEMENT
 THE OBJECT-SUBJECT MODEL OF DECISIONS
9

Information

Intelligenc
Decision
e
10 INFORMATION - BASIC RESOURCE OF MANAGER
Information - it is not matter or
energy, information – is information.
Norbert Wiener

How you get, organize and use the information

that determines you win or lose.
Bill Gates
 Features of using of the information by a manager in a corporation

eleven

Lack of Information

Information overload

Garbled information

Information asymmetry
 LACK OF INFORMATION
12

...
What else can be built in 10 years?
 Information overload
18

Information fatigue syndrome - a

concept that reflects the specific
psychological condition of the
person, which leads to incorrect
estimates of reality, false
conclusions and to adopt false
solutions. The term introduced into
There are 2 billion. TVs, 3 billion. Radio
circulation by the American on the planet, there are 150 thousand.
neuroscientist David Lewis in Journals annually, 5 billion. scientific
books and articles, 250 thousand.
1996. theses and reports.
 MINI GAME “BRIDGE"
19

The card is the span (the part of the bridge).

The bridge must consists of the spans (cards
face-up) . You must follow your instructions
with absolutely silence. You cannot speak,
write, draw etc. Just follow your instruction.
 INFORMATION ABOUT THE STRUCTURE OF BRIDGE
20

 The bridge must consist of 8 spans

 The bridge must consist no more than 10 spans
 The bridge must consist of more than 5 spans
 Bridge can not include the spans made of Clubs
 Bridge should only include spans made of Hearts
 You must to build the bridge yourself. If other team members will install the spans, stop them.
 The bridge should include the spans made of cards: 7, 8, 9, 10, Jack, Queen, King, Ace
consecutively
 The spans at the both ends of the bridge must stay perpendicularly to the others
21
Garbled information
The Law of
misrepresentation - is one of the
laws of management psychology -
the meaning of management
information (directives, orders, and
so on) may change in the course of
its transmission and movement
from top to bottom. The degree of
distortion sense directly
proportional to the number of
channels and transmission links
information is going through.
 Information asymmetry
22
 FEEDBACK (for managers)
23

To ignore the desired behavior - it means to weaken it, to ignore

the unwanted behavior - it means that you encourage it.

Feedback - it is a process, not an event

 INTELLIGENCE
24

Intelligence - the ability to solve various tasks and

effectively adapt to society.
(Psychological Dictionary)
I ≠ΣK.
Where I- intelligence, K-knowledge
 PRESENTATION OF
INTELLIGENCE
25

 Counting capacity
 verbal flexibility
 verbal perception
 dimensional orientation
 Creative thinking
 Creativity
 cognitive control
 Ear for music
 Two-factor theory of intelligence
26

Intellect

Flexible Stable
 TYPES OF INTELLIGENCE
27
 “…many employers would like to see employees plowed
28

as computers. This is nonsense! Man is fundamentally

different. Man ‘live cycles’ are these: ascent - descent -
recovery. If you think that is good that an employee who
works 8 hours without getting up, then think about its
effectiveness! How much more he could have done, if
you give him a chance to rest, to escape for another kind
of activity, just to close his eyes for 5-10 minutes. "
Tony Schwartz "The Power of Full Engagement"
 "Right" and "wrong" decisions
29

IN THEORY IN PRACTICE

Reasonable Satisfaction with the decision

In-time Willingness to convince others of the correctness

of its decision

Rationality Reproducibility of the decision

…
 Decision Making (Modern model)
thirty

Clarification Producing
Identifying of the purpose
the
the and Choosing Testing
formulation of Alternative
problem s
the problem
 MATRIX OF PRIORITIES
31
 «The PLACES WHERE DECISIONS LIVE»
32

 Best practics
 analysis of the context
 Continuous choosing of the variations
 Workaround
 Insight
 combinatorial thinking
 Inversion
GROUPS
Effect of the presence of others
 Norman Triplet (in 1897) studied the effect of competition on the
change in speed of a cyclist and compared the results with the results
obtained in a single race. Triplet found that cyclists show the best
time when competing with each other, and not with a stopwatch, and
concluded that the presence of others encourages people to more
energetic actions.
 The effect of the presence of others can both enhance and
reduce a person’s motivation.
 For example, the presence of others reduces the effectiveness of
human activity when memorizing meaningless syllables, when going
through a labyrinth, and when solving complex examples of
multiplication. In this case, the person’s attention can switch from
solving problems to the reactions of other people, to comparing
themselves with them.
Effect of “group membership”
 English psychologists G. Tezhfel and J. Turner (1970s) studied how a
person is aware of their belonging to a group. They found that if a
person identifies himself with a group, he seeks to evaluate it
positively. Thus, he raises the status of the group and his own self-
esteem.
 The cognitive component is that a person realizes his or her belonging
to a group and achieves this by comparing his group with other groups.
 A person emotionally experiences his belonging to a group in the form
of various feelings - love or hate, pride or shame. The emotional
component is linked with the cognitive component.
 The behavioral component shows itself when a person begins to
respond to other people from the standpoint of their group membership,
and not from the standpoint of an individual. Differences between his
group and other groups become noticeable and significant for him.
Witness phenomenon
 B. Latayne (1979) described the
phenomenon of a non-interfering
witness.
 After conducting a series of
experiments, he proved that the
number of witnesses of the tragic
accident itself prevents the possibility
of assistance from any of them. The
victim of an accident is less likely to
wait for help if a large number of
people are watching her suffering.
Synergy effect
 A group with a
successful interaction in
the work may exceed
the amount of success
of individuals.
“Groupthinking”
 The effect of "groupthinking" occurs when the
criterion of truth is a solid opinion of the group,
which is opposed to the opinion of the individual.
 When members of a group face the threat of
disagreements, disputes and conflicts, they try to
reduce them and thereby eliminate the negative
feelings that have arisen.
 They try to find a solution that suits everyone, even
if it is not objective and reasonable from the point of
view of each individual member of the group.
“Halo effect”
 Lack of time. A person does not have time to thoroughly meet another person and
carefully consider his personal qualities or the situation.
 Reloaded information. A person is so overloaded with information about various
people that he does not have the opportunity and time to think in detail about each
individual.
 Insignificance of another person. Accordingly, there is a vague, indefinite idea of ​a
friend, his “halo”.
 Stereotype perception. It arises on the basis of a generalized view of a large group
of people to which a given person belongs in one way or another.
 Originality of personality. One kind of personality trait strikes those around and
pushes all its other qualities into the background. Physical attractiveness is often
just such a feature.
 When is Collective decision-making advisable?
34

1. When the problem affects interests of many people, and each

of them has its own approach to the problem. In this case, it is
desirable to take into account all points of view before
coming to any decision.
2. If problem may have several correct decisions and the right
approach to the problem should take the views of different
people.
3. When a harmony among the participants more important for
the business than the decision itself.
 BENEFITS OF COLLECTIVE DECISIONS
35

 the group looks at a broader view of

the problem and carefully analyzes it
 During the group work participants
show greater knowledge, find more
reasons and more options
 Participation in decision-making
contributes to employee satisfaction,
and encourages the high activity and
involving in working process
 DISADVANTAGES OF COLLECTIVE
36
DECISIONS

 It takes a lot of discussion time

 Compromise solutions can satisfy noone
 At the process of joint activities the
group members can become so loyal to
it that group norms are beginning to
discourage saying differences of opinion
 When the decision is taken in the group,
it is not always clear exactly who is
responsible for the decision
37
Experiments of Moscovici C. (1969)
- 36 blue slides were presented to the different groups of 6 people. The task
was to name the color of slides. The 1st and 4th participants were the
decoy-ducks.
1) the decoy-ducks called all the
samples "green"; 2) the decoy-ducks
called 24 samples "green" and 12 -
blue, 3) all 6 participants were
"naive".
Conclusion: Minority, successively to
defend its position, may significantly
affect the public judgment of the
majority
CORPORATE CULTURE