Lesson 1: The nature of organizational behavior
Organizational behavior definition: the nature of the people-organization relationship
Organizational behavior studies the influence of individuals, groups and structure on behavior in
organizations.
> Chief goal = to apply that knowledge to improve organizations effectiveness
Organizational survival and success depends upon satisfying the needs and expectations of
people at work in order to achieve or exceed the goals of the organization. This demands
creating an organizational climate in which people work both willingly and effectively.
Organizational behavior is a multidisciplinary approach.
Micro: the individual
Macro: groups & organizations
Three main disciplines:
1. Psychology: The study of human personality and behavior including perception,
attitudes and motives. The main emphasis on the individuals of which the organization is
compromised.
2. Sociology: the study of social behavior, relationships and order, including social
structure, social relation and leader- follower relationships. Broadened emphasis on
human behavior in society.
3. Anthropology: The study of mankind including cultural systems, ideas, beliefs,
customs, and values and comparisons between such systems. The study of human
behavior as a whole.
Influences on organizational behavior:
- The individual
- The group
- The organization
- The environment
The individual
- Individuals are central to the study of organizational behavior. Organizations are made
up of individual members.
- Conflicts arise if the needs and demands of the individual and organization are
incompatible.
2
, - The task of management is integrating individuals and organizations as a means of
attaining organizational goals.
The group
- Groups are essentials to organization work and performance.
- Can be formal or informal
- Often develop their own hierarchies, leaders
- Can influence individual behavior
- Managerial understanding of group process can help the task of integration
The Organization
- Formal organizational structure is created by management
- It established internal relationships
- It provides order
- It helps to direct the organization towards the achievement of organizational goals
- Organizational design can have an impact on the behavior of people within the
organizations
- Behavior is influenced by patterns of structure, technology, styles of leadership and
systems of management
The Environment
External environment affects organizations as the result of:
- Technological development
- Economic activity
- Social and cultural influences
- The impact of government actions
- Corporate responsibility and ethical behavior
Management needs to assess and manage the opportunities and risks presented by the
external environment to the achievement of goals
Human Capital: The people, their performance and their potential in the organization. The
human factor in the organization; the combined intelligence, skills and expertise that gives the
organization its distinctive character. Three elements of Human Capital:
1. Intellectual Capital: is at the heart of individual development and creation of knowledge
and personal value
2. Emotional Capital: enables continual growth and fulfillment of ambition. It is maintained
through self-awareness and insight.
3. Social Capital: arises from forging of relationships. Traditional hierarchical roles and
responsibilities are being replaced by integrated structures and relationships of trust and
reciprocity.
Organizational analysis (Macro Level) - conceptualizing an organization integration individual
and organizational goals to be aligned.
3
Organizational behavior definition: the nature of the people-organization relationship
Organizational behavior studies the influence of individuals, groups and structure on behavior in
organizations.
> Chief goal = to apply that knowledge to improve organizations effectiveness
Organizational survival and success depends upon satisfying the needs and expectations of
people at work in order to achieve or exceed the goals of the organization. This demands
creating an organizational climate in which people work both willingly and effectively.
Organizational behavior is a multidisciplinary approach.
Micro: the individual
Macro: groups & organizations
Three main disciplines:
1. Psychology: The study of human personality and behavior including perception,
attitudes and motives. The main emphasis on the individuals of which the organization is
compromised.
2. Sociology: the study of social behavior, relationships and order, including social
structure, social relation and leader- follower relationships. Broadened emphasis on
human behavior in society.
3. Anthropology: The study of mankind including cultural systems, ideas, beliefs,
customs, and values and comparisons between such systems. The study of human
behavior as a whole.
Influences on organizational behavior:
- The individual
- The group
- The organization
- The environment
The individual
- Individuals are central to the study of organizational behavior. Organizations are made
up of individual members.
- Conflicts arise if the needs and demands of the individual and organization are
incompatible.
2
, - The task of management is integrating individuals and organizations as a means of
attaining organizational goals.
The group
- Groups are essentials to organization work and performance.
- Can be formal or informal
- Often develop their own hierarchies, leaders
- Can influence individual behavior
- Managerial understanding of group process can help the task of integration
The Organization
- Formal organizational structure is created by management
- It established internal relationships
- It provides order
- It helps to direct the organization towards the achievement of organizational goals
- Organizational design can have an impact on the behavior of people within the
organizations
- Behavior is influenced by patterns of structure, technology, styles of leadership and
systems of management
The Environment
External environment affects organizations as the result of:
- Technological development
- Economic activity
- Social and cultural influences
- The impact of government actions
- Corporate responsibility and ethical behavior
Management needs to assess and manage the opportunities and risks presented by the
external environment to the achievement of goals
Human Capital: The people, their performance and their potential in the organization. The
human factor in the organization; the combined intelligence, skills and expertise that gives the
organization its distinctive character. Three elements of Human Capital:
1. Intellectual Capital: is at the heart of individual development and creation of knowledge
and personal value
2. Emotional Capital: enables continual growth and fulfillment of ambition. It is maintained
through self-awareness and insight.
3. Social Capital: arises from forging of relationships. Traditional hierarchical roles and
responsibilities are being replaced by integrated structures and relationships of trust and
reciprocity.
Organizational analysis (Macro Level) - conceptualizing an organization integration individual
and organizational goals to be aligned.
3
