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Fundamentals of Organizational Behavior

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Page 1: Fundamentals of Organizational Behavior
Page 2: Fundamentals of Organizational Behavior
Page 3: Fundamentals of Organizational Behavior

a. Understanding Human Behavior in an Organization

- is the systematic study and careful

application of knowledge about how

people as individual and as groups – act

within organizations. It strives to identify

ways in which people can act more

effectively. Organizational behaviour is a

scientific discipline in which large number

of research studies and conceptual

developments are constantly adding to

its knowledge base.

Page 4: Fundamentals of Organizational Behavior

b. Fundamental Concepts

The Nature of People

1. Individual Differences

– people have much in common, but each

person in the world is also individually unique.

The idea of individual differences comes

originally from psychology. From the day of

birth, each person is unique, and the individual

experiences after birth tend to make people

even more different.

Page 5: Fundamentals of Organizational Behavior

3. A Whole Person

– although some organizations may wish they

could employ only a person’s skill or brain, they

actually employ a whole person rather than

certain characteristics. Different human traits

may be studied separately, but in the final

analysis they are all part on one system

making up a whole person.

Page 6: Fundamentals of Organizational Behavior

2. Perception

– people look at the world and see things

differently. Even when presented with the same

object, two people may view it in two different

ways. Their view of their objective environment

is filtered by perception, which is unique way

in which each person sees, organizes, and

interprets things.

Page 7: Fundamentals of Organizational Behavior

4. Motivated Behavior

– these may relate to a person’s needs or the

consequences that results from acts. In the

case of needs, people are motivated not by

what we think they ought to have but by

what they want for themselves.

Page 8: Fundamentals of Organizational Behavior

5. Desire for Involvement

– they hunger for the chance to share what they

know and to learn from the experience.

Consequently, organizations need to provide

opportunities for meaningful involvement. This

can be achieved through employee

empowerment – a practice that will result

in mutual benefit for both parties.

Page 9: Fundamentals of Organizational Behavior

6. Value of the Person

– people deserved to be treated differently from

other factors of production because they are

of a higher order in the universe. Because of

this distinction, they want to be treated with

caring, respect and dignity – and they

increasingly demand such treatment from

their employers.

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The Nature of Organizations

1. Social Systems

– it implies that the organizational environment

is one of dynamic change rather than a static

set of relations as pictured on an organization

chart. All parts of the system are

interdependent, and each part is subject to

influence by any other part.

Page 11: Fundamentals of Organizational Behavior

2. Mutual Interest

– organizations have human purpose. They are

formed and maintained on the basis of some

mutuality interest among their participants.

Managers need employees to help them

reach organizational objectives, people need

organizations to help them reach individual

objectives.

Page 12: Fundamentals of Organizational Behavior

3. Ethics

– when the organization’s goals and actions

are ethical, it is more likely that individual,

organizational, and social objectives will be

met. People find more satisfaction in work

when there is cooperation and teamwork.

Page 13: Fundamentals of Organizational Behavior

c. Basic Approaches of Human Behavior

1. Human Resource Approach (Supportive)

– it is developmental. It is concerned with the

growth and development of people toward

higher levels of competency, creativity and

fulfilment because people are the central

resource in any organization and any

society.

Page 14: Fundamentals of Organizational Behavior

2. Contingency Approach

– means different situations require different

behavioral practices for greatest effectiveness.

The strength of contingency approach is that

it encourages analysis of each situation prior

to action while at the same time discouraging

habitual practices based on universal

assumptions about people.

Page 15: Fundamentals of Organizational Behavior

3. Result Oriented Approach

– all organizations need to achieve some

relevant outcomes or results. A dominant

goal for many is to be productive so this

results orientation is a common thread

woven through organizational behavior.

Page 16: Fundamentals of Organizational Behavior

4. System Approach

– all parts of an organization interact in a

complex relationship. The system approach

compels managers to take a holistic and

synthesizing view of the subject. As a result,

managers need to interpret people

organization relationships in terms of the

whole person, whole group, whole

organization, and whole social system.

Page 17: Fundamentals of Organizational Behavior

d. Limitations of Organizational Behavior

1. Behavioral Bias

– people who are lack in system understanding

and become superficially infatuated with OB

may develop a behavioural bias, which give

them a narrow viewpoint that emphasizes

satisfying employee experiences while

overlooking the broader system of the

organization in relation to all its publics.

Page 18: Fundamentals of Organizational Behavior

2. The Law of Diminishing Returns

– it returns in organizational behaviour works in

a similar way. It states that at some point,

increase of a desirable practice produce

declining returns, eventually zero returns and

then negative returns as more increases are

added.

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3. Unethical Manipulation of People

– people who are lack respect for the basic

dignity of the human being could learn

organizational behaviour ideas and use them

for selfish ends. They could use what they

know about motivation or communication in

the manipulation of people without regard

for human welfare. People who lack ethical

values use people in unethical ways.

Page 20: Fundamentals of Organizational Behavior
Page 21: Fundamentals of Organizational Behavior

B. Strategic Human Resource Management

Human resources planning are a process that

identifies current and future human resources

needs for an organization to achieve its goals.

Human resources planning should serve as a

link between human resources management

and the overall strategic plan of an organization.

Aging worker populations in most western

countries and growing demands for qualified

workers in developing economies have

underscored the importance of effective

Human Resources Planning.

Page 22: Fundamentals of Organizational Behavior
Page 23: Fundamentals of Organizational Behavior

MODELS OF ORGANIZATIONAL

BEHAVIOR

Page 24: Fundamentals of Organizational Behavior

- Autocratic Model CTCIAATOUR ELDMO

- Custodial ModelLOUSCSDTI DELMO

- Supportive ModelIREOUPTVPS ODLEM

- Collegial ModelOIEALCGLL LEOMD

- System Model YETSMS LODEM

JUMBLED LETTERS

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Page 26: Fundamentals of Organizational Behavior

COMMUNICATION FUNDAMENTALS

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Downward Communication

Higher designation to lower designation.

Ex. The boss ordered his worker.

Here are the effect of this type of

communication:

• Implementation of goals, strategies,

and objectives

• Job instructions and rationale

• Procedures and practices

• Performance feedback

• Indoctrination

Page 28: Fundamentals of Organizational Behavior

Upward Communication

Lower designation to higher designation.

Ex. Worker request to his boss.

Here are the effect of this type of

communication:

• Problems and exceptions

• Suggestions for improvement

• Performance report

• Grievances and disputes

• Financial and accounting information

Page 29: Fundamentals of Organizational Behavior

D. Social Systems and Organization

Diversity

• Different culture/multicultural

• Built by differences in people.

Ex. Religion, age, gender, race, language,

socioeconomic status, ethnicity,

family structure etc.

Page 30: Fundamentals of Organizational Behavior

Social DiversityIt is the mixture of different types of people in a

community. It is used to describe the uniqueness and

individuality of the society. Social diversity is the diverse

factors surrounding our society such as race, culture,

religion, age and disabilities.

Social diversity hinges on three universal human realities:

a. each individual is unique

b. individuals and societies are inter-related and

inter-dependent

c. societies and cultures are dynamic, changes

maybe rapid or gradual, but will always affect

different members of society in ways that reflect

differences in power and status.

Page 31: Fundamentals of Organizational Behavior

CultureThe customary beliefs, social forms, and

material traits of a racial, religious or social group.

Ex. Religion, behaviour, language, values,

customs, clothing, different foods etc.

Cultural Values

A culture’s values are its ideas about

what is good, right, fair and just.

Page 32: Fundamentals of Organizational Behavior

3 types of Cultural Diversity

1. Concrete – most visible and tangible,

different

festivals and celebrations, clothing, food

etc.

2. Behavioral – how we define our social roles

(family, language, socioeconomics etc.)

3. Symbolic – includes our values and beliefs

(religion, customs, upbringing)

Page 33: Fundamentals of Organizational Behavior

Understanding a Social System

A social system is a complex set of human

relationships interacting in many ways. Possible

interactions are as limitless as the stars in the

universe. Within a single organization, the social

system includes all the people in it and their

relationships to one another and to the outside

world.

Page 34: Fundamentals of Organizational Behavior

a. Social Equilibrium

A system is said to be in social equilibrium when

there is a dynamic working balance among its

interdependent parts. Equilibrium is a dynamic

concept not a static one. Despite constant

change and movement in every organization,

the system’s working balance can still be

retained. The system is like a sea: There is a

continuous motion and even substantial

disruption from storms, but over time the sea’s

basic character changes very little.

Page 35: Fundamentals of Organizational Behavior

b. Functional and Dysfunctional Effects

A change such as the introduction of

cross-functional design teams has a functional

effect when it is favorable for the system. When

an action or a change creates unfavorable

effects, such as a decline in productivity, for the

system it has a dysfunctional effect. A major

management task is to appraise both actual

and proposed changes in the social system to

determine their possible functional or

dysfunctional effects so that appropriate

responses can be anticipated and made.

Page 36: Fundamentals of Organizational Behavior

c. Psychological and Economic Contracts

When employees join an organization, they

make unwritten psychological contract with it,

although often they are not conscious of doing

so. The psychological contact defines the

conditions of each employee’s psychological

involvement –both contributions and

expectations- with the social system. Employees

agree to give a certain amount of loyality ,

creativity and extra effort but in return they

expect more than economic rewards from the

system.

Page 37: Fundamentals of Organizational Behavior

Social Culture

Social cultures are often portrayed as consistent

within a nation, thereby producing a so-called

national culture. At the simplest level, national

cultures can be compared on the bases of how

their members relate to each other, accomplish

work, and respond to change. Knowledge of

social cultures is especially because managers

need to understand and appreciate the

backgrounds and beliefs of all members of their

work unit.

Page 38: Fundamentals of Organizational Behavior

a.Cultural Diversity

Employees in almost any organization are

divided into subgroups of various kinds.

Formation of groups is determined by two

broad sets of conditions. First, job-related

(organizationally created)differences and

similarities, such as type of work, rank in

organization and physical proximity to one

another , sometimes causes people to align

themselves into groups.

Page 39: Fundamentals of Organizational Behavior

b. Social Culture Values

The result of this cultural emphasis is a work ethic

for many people meaning that they view work

as very important and as a desirable goal in life.

They tend to like work and derive satisfaction

from it. They usually have a stronger commitment

to the organization and to its goals than do other

employees. These characteristics of the work

ethnic make it highly appealing to employers.

Page 40: Fundamentals of Organizational Behavior

Role

A role is the pattern actions expected of a

person in activities involving others. Role reflects

a person’s position in the social system with its

accompanying rights and obligations, power

and responsibility. In order to be able to interact

with one another people need some way of

anticipating others’ behavior. Role performs this

function in the social system.

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Status

a.Status Relationships

In a work organization, status provides a system

by which people can relate to one another as

they work. Without it, they would tend to be

confused and spend much of their time trying

to learn how to work together. Though status

can be abused, normally it is beneficial because

it helps people cooperate with one another.

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b. Status Symbols

These are the visible, external things that attach

to a person or workplace and serve as evidence

of social rank. They exist in the office, shop,

warehouse, and refinery or wherever work

groups congregate.

Page 43: Fundamentals of Organizational Behavior

c. Sources of Status

The sources of status are numerous, but in a

typical work situation several sources are easily

identified. A person’s abilities, job skills and type

of work also are major sources of status.

Major sources of status on the job:

a. education f. pay

b. job level g. seniority

c. abilities h. age

d. job skill i. method of pay

e. occupation j. working conditions

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d. Significance of Status

It influences the kinds of transfers that

employees will take because they don’t want

a low-status location or job assignment. It helps

determine who will be an informal leader of a

group, and it definitely serves to motivate those

seeking to advance in the organization. Some

people are status seekers wanting a job of high

status regardless of other working conditions.

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Page 46: Fundamentals of Organizational Behavior

E. Organizational Culture

Organizational Culture is the set of assumptions,

beliefs, values and norms that are shared by an

organization’s members. This culture may be have

been consciously created by its key members or

it may have simply evolved across time. It

represents a key element of the work environment

in which employees perform their jobs.

Page 47: Fundamentals of Organizational Behavior

a. Characteristics of Culture

Organizations like fingerprints and snowflakes

are unique. Each has its own history patterns

of communication systems and procedures

mission statements and visions stories and

myths which in their totality constitute its

distinctive culture. Cultures are relatively

stable in nature, usually changing only slowly

over time.

Page 48: Fundamentals of Organizational Behavior

b. Measuring Organizational Culture

Systematic measurement and comparison of

cultures is difficult at best. Most early attempts

by researchers relied on examination of stories,

symbols, rituals and ceremonies to obtain clues

and construct a composite portrait.

Page 49: Fundamentals of Organizational Behavior

c. Communication and Changing Culture

If organizations are consciously create and

manage their cultures, they must be able to

communicate them to employees, especially

the newly hired ones. People are generally

more willing to adapt when they want to please

others, gain approval and learn about their

new work environment.

Page 50: Fundamentals of Organizational Behavior
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Prepared by: (MAED –

Educational Management)

Yonese Giselle Gonzales

Agnes Selosa

Baby Glen Anastacio

Maria Vina Jane Diño

Joseph Banela

Eusie Maligo

Gina Cabrera