1. What is Organizational Behavior (OB)?
1.1 The Importance of Interpersonal Skills
In the 1980s, business schools emphasized technical management
aspects, such as economics and finance. Over time, the role of
interpersonal skills in managerial effectiveness became evident. A lack of
interpersonal skills often hinders employee advancement. Integrating OB
principles into workplaces can lead to positive outcomes:
1. Organizations that are good places to work achieve superior
financial results.
2. Managers with strong interpersonal skills attract and retain high-
performing employees, which are costly to replace.
3. Positive workplace relationships enhance job satisfaction, reduce
stress, and decrease turnover.
Supportive dialogue between employees and managers fosters workplace
satisfaction and idea endorsement. OB also encourages social
entrepreneurship and corporate social responsibility (CSR), addressing
social issues through organizational practices.
1.2 Management and Organizational Behavior
A manager achieves goals through others by making decisions, allocating
resources, and directing activities. In not-for-profit organizations,
managers are called administrators. Research shows 58% of managers
lack formal training, 25% feel unprepared for their roles, and 82% of
organizations often choose the wrong person for management roles.
An organization is a coordinated unit comprising two or more individuals
functioning continuously to achieve common goals. Managers perform
four key activities:
1. Planning: Defining goals, creating strategies, and developing
coordinated action plans.
2. Organizing: Assigning tasks, grouping activities, defining authority,
and decision-making locations.
3. Leading: Motivating, directing, resolving conflicts, and choosing
communication channels.
4. Controlling: Monitoring performance to ensure tasks are
accomplished as planned and correcting deviations.
, 1.2.1 Management Roles
Managers’ roles fall into three categories:
Interpersonal: Building relationships.
Informational: Sharing and analyzing information.
Decisional: Making critical organizational choices.
1.2.2 Management Skills
Managers need three types of skills:
1. Technical skills: Applying specialized knowledge or expertise.
2. Human skills: Understanding, motivating, and working with
individuals and groups.
3. Conceptual skills: Analyzing and diagnosing complex situations.
1.2.3 Effective vs. Successful Managerial Activities
Effective managers focus on performance quality, employee satisfaction,
and commitment. They prioritize communication, which contributes the
most, and networking the least. Successful managers advance faster,
relying heavily on networking and less on human resource management.
1.3 Complementing Intuition with Systematic Study
Human behavior follows identifiable patterns, making it predictable.
Systematic study—observing relationships, attributing causes, and
drawing conclusions based on evidence—supports effective decision-
making. Evidence-based management (EBM) leverages scientific evidence
over intuition, which may overestimate accuracy.
1.3.1 Big Data
Big Data became prominent with the rise of online shopping.
Organizations analyze it to predict events, manage risks, and understand
behaviors. However, its use raises privacy concerns and highlights the
unpredictable nature of human behavior.
1.4 Disciplines Contributing to OB
OB combines insights from various fields:
Psychology: Focuses on individual behavior.
Social Psychology: Examines group dynamics and attitudes.
Sociology: Explores organizational culture, communication, and
power.
Anthropology: Studies cultural and environmental differences.
1.1 The Importance of Interpersonal Skills
In the 1980s, business schools emphasized technical management
aspects, such as economics and finance. Over time, the role of
interpersonal skills in managerial effectiveness became evident. A lack of
interpersonal skills often hinders employee advancement. Integrating OB
principles into workplaces can lead to positive outcomes:
1. Organizations that are good places to work achieve superior
financial results.
2. Managers with strong interpersonal skills attract and retain high-
performing employees, which are costly to replace.
3. Positive workplace relationships enhance job satisfaction, reduce
stress, and decrease turnover.
Supportive dialogue between employees and managers fosters workplace
satisfaction and idea endorsement. OB also encourages social
entrepreneurship and corporate social responsibility (CSR), addressing
social issues through organizational practices.
1.2 Management and Organizational Behavior
A manager achieves goals through others by making decisions, allocating
resources, and directing activities. In not-for-profit organizations,
managers are called administrators. Research shows 58% of managers
lack formal training, 25% feel unprepared for their roles, and 82% of
organizations often choose the wrong person for management roles.
An organization is a coordinated unit comprising two or more individuals
functioning continuously to achieve common goals. Managers perform
four key activities:
1. Planning: Defining goals, creating strategies, and developing
coordinated action plans.
2. Organizing: Assigning tasks, grouping activities, defining authority,
and decision-making locations.
3. Leading: Motivating, directing, resolving conflicts, and choosing
communication channels.
4. Controlling: Monitoring performance to ensure tasks are
accomplished as planned and correcting deviations.
, 1.2.1 Management Roles
Managers’ roles fall into three categories:
Interpersonal: Building relationships.
Informational: Sharing and analyzing information.
Decisional: Making critical organizational choices.
1.2.2 Management Skills
Managers need three types of skills:
1. Technical skills: Applying specialized knowledge or expertise.
2. Human skills: Understanding, motivating, and working with
individuals and groups.
3. Conceptual skills: Analyzing and diagnosing complex situations.
1.2.3 Effective vs. Successful Managerial Activities
Effective managers focus on performance quality, employee satisfaction,
and commitment. They prioritize communication, which contributes the
most, and networking the least. Successful managers advance faster,
relying heavily on networking and less on human resource management.
1.3 Complementing Intuition with Systematic Study
Human behavior follows identifiable patterns, making it predictable.
Systematic study—observing relationships, attributing causes, and
drawing conclusions based on evidence—supports effective decision-
making. Evidence-based management (EBM) leverages scientific evidence
over intuition, which may overestimate accuracy.
1.3.1 Big Data
Big Data became prominent with the rise of online shopping.
Organizations analyze it to predict events, manage risks, and understand
behaviors. However, its use raises privacy concerns and highlights the
unpredictable nature of human behavior.
1.4 Disciplines Contributing to OB
OB combines insights from various fields:
Psychology: Focuses on individual behavior.
Social Psychology: Examines group dynamics and attitudes.
Sociology: Explores organizational culture, communication, and
power.
Anthropology: Studies cultural and environmental differences.
