Introduction to

Human Behavior in
Organization
Organization and Management

Organization and management is

twin terms that exist side by side with
each other, each one needs and
supports the other. Organizations will
be inert and useless if there is no
management that will steer it;
management will be hollow and
meaningless if there’s no organization
to manage.
Management, according to Kast,
has the following elements: Functions of Management

toward objectives, Planning

through people, Controlling

via techniques and,

Directing

in an organization.
Organizing

In a short, management is
getting the tasks done through Staffing
people and techniques toward the
attainment of objective within the
organizational setting.
Organization and Human Behavior

Why do people behave the way Under what circumstances will

they do when they are in people’s behavior in
organizations? organizations change?

What impacts do organizations

have on the behavior of
individuals, formal groups (such
Why do different groups in the
as departments), and informal
same organization develop
groups (such as people from
behavior norms?
several departments who meet
regularly in the agency’s lunch
room)?
The Field of Organizational Behavior

Study of what people think, feel, and do in and

around organizations.
Its focus is on employee behavior, decisions,
perceptions, and emotional responses. It looks
at how individuals and teams in organizations
relate to each other and do their counterparts in
other organizations. It also encompasses the
study of how organizations interact with their
external environments, particularly in the
context of employee behavior and decisions.
FOUNDATIONS OF ORGANIZATIONAL
BEHAVIOR
Plato
Essence of Leadership

Aristotle
Persuasive Communication

Confucius
Virtues ethics and leadership

Niccolo Machiavelli
Foundation of Contemporary Work on Organizational Power and
Politics

Adam Smith
Organizational structure based on the Division of Labour

Max Weber
Rational Organizations, work ethic, and charismatic leadership

Frederick Winslow Taylor

Goal setting and rewards to motivate employees

Elton Mayo
How formal and informal group dynamics operate in the workplace
Mary Parker Follet(1868)and
Chester Barnard (1886)
Pioneers of contemporary organization behavior thinking a decade or
two before Organizational Behavior became a distinct field of
inquiry. Follet was a Boston social worker and political science
scholar who suggested that conflict can be “constructive” when the
parties gain a better understanding of each other. She was also a
strong advocate of employee involvement and organizational
democracy. Chester Barnard was a career executive (including
president of New Jersey Bell Telephone Company and, later, head of
two foundations), who wrote several influential books on
management and organizations. He emphasized that organizations
depend on effective communication and that a manager’s formal
authority depends on the employee’s willing ness to accept that
power. He also discussed norms of informal groups as well as rational
perspective of employee motivation. Both Barnard and Follet
described organizations as holistic cooperative organisms. This was a
refreshing contrast to the machinelike metaphor of organizations that
dominated management theory and practice in those days.
 WHY WE STUDY ORGANIZATIONAL
BEHAVIOR
Study of learning how to predict human behavior and, then. Apply it in some useful way to make the
organization more effective. It helps in the effective utilization of people working in the organization
guarantees the success of the organization.
Helps the managers to understand the basis of motivation and what he should do to motivate his
subordinates.

Helps maintain cordial relations which help to increase the overall productivity of the industry.

Helps greatly in improving our inter – personal relations in the organization.

Helps managers apply appropriate motivational techniques in accordance with the nature of individual
employees who exhibit a learning difference in many respects.
WHAT IS THE GOAL OF ORGANIZATIONAL
BEHAVIOR?

To describe To understand To predict To control

 WHAT IS ORGANIZATIONAL BEHAVIOR?

“Organization behavior is directly concerned Study of both group and individual

with the understanding, prediction, and control performance and activity within an
of human behavior in organizations”. organization.
– Fred Luthans
ORGANIZATION
Definition of Organization:

 A social unit of people that is structured and

managed to meet a need or to pursue collective
goals.

 Is an entity – such as a company, an institution, or

an association – comprising one or more people and
having a particular purpose.
IMPORTANCE OF
ORGANIZATION
 Optimizes Utilization of resources
 Ensures coordination
 Facilitates effective management
 Motivates Personnel
 Facilitates Delegation of Authority
BEHAVIOR
Definition of Behavior

 Is the actions and mannerisms made by individuals,

organisms, systems or artificial entities in conjunction with
themselves or their environment, which includes the other
systems or organisms around as well as the physical
environment.

 Simply, the way in which an animal or person acts in

response to a particular situation or stimulus.
Here are some examples of words to describe task-
oriented behavior with positive and negative connotation
includes:
Positive
Negative
 Active
 Anxious
 Ambitious  Careless
 Cautious  Impatient
 Conscientious  Lazy
 Creative  Rigid
 Logical  Scatterbrained
 Organized  Slapdash
 Perfectionist  Undisciplined
 Precise  Volatile
COMMUNICATION
INTRODUCING ORGANIZATIONAL COMMUNICATION

 Effective communication is a building block of successful organizations, In

other words, communication acts as organizational blood
 All managers and employees need to be aware of how people behave in order to
provide the best working environment. Organizational behavior is about how
people may be motivated to work together in more effective ways. The interaction
required to direct a group toward a set of common goals is called organizational
communication.
 In each of these interactions, we are occasionally satisfied but sometimes
frustrated by incompetence, insensitivity, lack of coordination, and red tape, all of
which result from ineffective organizational communication. A deeper
understanding of communication permits us to better comprehend the factors that
contribute to a successful organization.
The importance of communication in an
organization can be summarized as follows:

1. Communication promotes motivation by informing and clarifying the employees about the task to
be done, the manner they are performing the task, and how to improve their performance if it is
not up to the mark.
2. Communication is a source of information to the organizational members for decision-making
process as it helps identifying and assessing alternative course of actions.
3. Communication also plays a crucial role in altering individual’s attitudes, i.e., a well informed
individual will have better attitude than a less-informed individual. Organizational magazines,
journals, meetings and various other forms of oral and written communication help in molding
employee’s attitudes.
4. Communication also helps in socializing. One cannot survive without communication.
5. Communication also assists in controlling process. It helps controlling organizational member’s
behavior in various ways. There are various levels of hierarchy and certain principles and
guidelines that employees must follow in an organization. They must comply with organizational
policies, perform their job role efficiently and communicate any work problem and grievance to
their superiors. Thus, communication helps in controlling function of management.
 Directions of Communication

Leading
Identifies the five primary functions of business communication as leading,
rationalizing, problem-solving, conflict management and compliance gaining. The
function of leading is important to enable management to issue instructions in a clear,
specific manner so that workers are able to follow them without difficulty. This is
generally downward communication.
Rationalizing
This function enables management to explain the reasons for instructions in a
way that workers can understand. In this context, it is downward communication;
however, rationalizing is also important for enabling workers to bring issues to the
attention of management, using upward communication to do so. If a worker identifies
a motivation problem, for example, he may communicate this upward formally to
management and use rationalization to highlight the potential impact of the problem on
profitability.
Problem-Solving
Most companies hold regular meetings to discuss issues such as production
cycles, delivery times, price margins and other areas where unusual situations could
arise that may affect the performance of a business. In these meetings, organizational
communication plays an important role in tabling problems, brainstorming potential
responses and finalizing solutions. In this way, a company obtains maximum benefit
from the abilities of those involved in the communication, which flows horizontally and
often informally.
Conflict Management
Conflict in the workplace can lead to the loss of talented employees, the lodging
of grievances and possibly lawsuits. Managing conflict by bringing all parties together
to discuss their differences in a safe, moderated environment is an important function
of organizational communications. This type of communication usually involves all
three directions of communication, and, although discussions may be informal, the
final decisions are usually communicated formally.
Gaining Compliance
Gaining the compliance of employees is necessary for them to adhere fully to
instructions. To do this, management needs to listen to feedback from the staff and to
take account of their ideas and comments. Feedback or two-way communication can
be both upward and downward or horizontal and may be formal or informal, but it is
important for a company to enable open communication channels to motivate and
achieve the best performance from employees.
MOTIVATION
 Motivation in Organizational Behavior
 What is Motivation?

Motivation results when an individual interacts with a situation. It’s a state of mind
where the individual determines the level of desire, interest and energy that will
translate into action.
Motivation = Intensity + direction + persistence of effort

 Intensity refers to how hard a person tries to achieve his or her goal.

 Direction refers to the area to which an individual focuses his efforts, and the
quality of those focused efforts.
 Persistence, or the amount of time an individual can maintain the effort to achieve
a goal.
 The Expectancy Framework
 The expectancy framework assumes that motivation is a cognitive process and
considers how workers feel about their efforts and how they’re related to
performance and outcome. Yes, you read that right. It’s about how
workers feel about these things, not necessarily how they really are, because it’s
an employee’s perception of events that’s important here. Managers should
understand how their employees feel about a situation if they’re going to motivate
them.
 The framework is basic in that employees feel their efforts lead to good
performance, and good performance leads to outcomes
First, there is expectancy. Expectancy asks, “Will more hard work achieve this goal?”
This is the individual’s perception as to how difficult the target goal is to accomplish, or
how much effort will need to go into accomplishing it. Next, instrumentality comes
into play. Instrumentality asks, “Will the outcome/reward actually be delivered as
promised?” Finally, there’s valence. Valence asks, “Is this reward worth the work?”
 Individual Components of Motivation

Intrinsic and Extrinsic Motivators

 Intrinsic motivation comes from within, and it’s usually driven by individuals’ needs
to do something for themselves. Each person has unique desires: they may want
to learn a language or skill, or reach a goal of finishing a 5K in a certain amount of
time. Intrinsic motivation is the reason why people climb mountains. (It’s not
because they’re there!)

 Extrinsic motivation comes from an external source. People may work a second

(or third) job because they need additional money to pay the bills. Children may
apologize to another child for not sharing their toys to avoid punishment from their
parents.
 Work Components of Motivation

 Job Design
• Skill variety refers to the number of skills used to do a job. A traditional assembly line job would have a low skill
variety, whereas a nurse would have higher skill variety.
• Task identity refers to the level at which employees feel like they “owns” the outcome when completing the
task. Going back to our first example, workers on an assembly line would have low task identity. Which parts
from their lines ended up in which machines? They’re not likely to know, so they would have a low task identity.
• Task significance indicates the importance of that task to the organization. The job of receptionist, for example,
has lower task significance. A temporary employee can be brought in to answer phones and sort mail.
• Autonomy is the degree to which an employee can make independent decisions and not have to check in with
a supervisor. Again, clerical work would have low autonomy because the job is repetitious and workers make
few decisions on their own.
• Feedback is information about an employee’s performance. Most employees who perform a task want to know
if they are doing it right, doing it well, and so on.
 Goal Setting
Employees are motivated when they’re set on the path toward a particular goal.
Goal setting is essential in the effort-performance link on the expectancy
framework. Management by objective (MBO) focuses on setting goals, monitoring
progress, and giving feedback and correction. MBO assumes that employees must
have clear, challenging, measurable and specific goals to be motivated to perform
well.
LEADERSHIP
 Definition

 a process by which an executive can direct, guide and influence the

behavior and work of others towards accomplishment of specific goals in a
given situation.

 the potential to influence behavior of others. It is also defined as the

capacity to influence a group towards the realization of a goal.

 the ability of a manager to induce the subordinates to work with

confidence and zeal.

 According to Keith Davis, “Leadership is the ability to persuade others to

seek defined objectives enthusiastically. It is the human factor which binds
a group together and motivates it towards goals.”
Significance of Leadership

Builds Work
Initiates Action
Environment

Creating
Building Morale Motivation
Confidence

Providing
Coordination
Guidance
 Qualities of a Leader
Physical
Intelligence
Appearance
Knowledge of
Vision and Work
Foresight
Objective

Communicative Self
Skills Confidence
and will-power
Sense of
Responsibility

Empathy
Humanist
 Leader VS Manager

Basis Manager Leader

A person becomes a manager by A person becomes a leader on basis
Origin
virtue of his position. of his personal qualities.
Manager has got formal rights in an
Formal Rights Rights are not available to a leader.
organization because of his status.
The subordinates are the followers of The group of employees whom the
Followers
managers. leaders leads are his followers.
A manager performs all five Leader influences people to work
Functions
functions of management. willingly for group objectives.
A leader is required to create cordial
A manager is very essential to a
Necessity relation between person working in
concern.
and for organization.
 Basis Manager Leader
Stability It is more stable. Leadership is temporary.
Mutual Relationship All managers are leaders. All leaders are not managers.
Manager is accountable for self and
Leaders have no well defined
Accountability subordinates behaviour and
accountability.
performance.
A manager’s concern is organizational A leader’s concern is group goals and
Concern
goals. member’s satisfaction.
People follow manager by virtue of job
Followers People follow them on voluntary basis.
description.
A manager can continue in office till he
A leader can maintain his position only
Role continuation performs his duties satisfactorily in
through day to day wishes of followers.
congruence with organizational goals.
A leader has command over different
Manager has command over allocation sanctions and related task records.
Sanctions
and distribution of sanctions. These sanctions are essentially of
informal nature.
GROUPS
What is a
Group?
 a number of people or things that are located close together or are considered or
classed together.

 a number of individuals assembled together or having some unifying relationship

 two or more individuals who are connected to one another by and within social
relationships. (Donelson R. Forsyth)
 Why people join groups?

Organizationa
Status Goal
l culture Power Achieveme
Security
nt
What is Group Behavior in
Organization?
 Follows organizational norms and rules wherein the employees are expected to be
disciplined, follow orders and work to the requirements of the organization.

 Policies are formed to ensure that the employees work together as a team to realize
and actualize the organizational vision and mission
 Advantages of Group Behavior
 Organizations gain from the members of cohesive group because they communicate better;
they share ideologies and respect opinions of fellow employees. This all create an
environment of cooperation resulting into benefits to the organizations in the form of
increased productivity, low employee turnover etc.

 It develops the spirit of cooperation and teamwork as members can learn how to work
together to achieve a goal. It helps in the achievement of set goals which will be
impossible if it is to be pursued by individual members. It develops good leadership and
followership qualities in members.
 Example of Success Stories of Groups
In Organization

Microsoft
Microsoft is one of those companies that is continuously evolving – both internally and
externally. One of their most notable recent changes came from a product innovation
involving their Microsoft Office offerings. In 2016, Microsoft decided to reorganize its
Office unit to combine everything into one application as opposed to selling individual
products. The company combined PowerPoint, Word and Sway into one app, and Excel
and Access in another.

The idea behind the move, according to Julie Larson-Green, Chief Experience Officer for
Microsoft’s Applications and Services group, was to “think more broadly and more deeply
about the future of those technology areas and the future of that kind of content creation
rather than focusing so much on the individual applications themselves.”
For Microsoft employees, this innovation meant that instead of being divided into product
groups (i.e.: one group for Excel, one group for PowerPoint, etc.), they would be divided
up according to consumers’ tasks. For example, one group would be focusing on
presentations and content creation, and another on analytics and reporting tools, etc.
 
The Starbucks Expansion
 
It might be a joke now (how there’s a Starbucks on every block and soon occupying every
storefront), but it wasn’t always like that. In fact, the dominance of Starbucks was never as
sure a thing as it looks in retrospect or over its company timeline. Back in the early 1990s,
Starbucks chairman and CEO Howard Schultz had opened a few hundred new stores
across the United States, but the business was not successful.
 
The ambitious expansion was hitting problems concerning customer service and a lack of
communication between various levels of the company. The company might have brewed a
winning cup of joe but their customer service and employee engagement were staler than a
pot of yesterday’s coffee.
 
In 1995, Howard Behar became the president of Starbucks and with him came
advancements in company culture. He cultivated a work environment that met the
employee’s needs, which in turn inspired them to better serve their customers. It was
through his belief that it was not the coffee they were selling but the customer experience,
which gave Behar the mission statement to rally his teams to work together more
effectively.
 
What are we to make of the group behavior in organization?

> The answer to this question is that unless there are groups and they
conform to the norms and rules of conduct, it is impossible for the organizational
ship to move forward as otherwise each member would be pulling and steering
it in different directions.
THANK YOU!!!!!