ORGANIZATION BEHAVIOR (OB)

An Introduction

Makerere University
School of Psychology

Sept. 2023 1
 Introduction
• “Investing in People is the most important aspect
of any modern business.”

• “Sometimes in business it seems as if people are

your greatest liability and that all your problems
are people problems. It’s at times like this that it’s
worth reminding yourself that people are the
cornerstone of everything we do.”

• “Management is the process by which managers

create, direct , maintain and operate purposive
organizations through systematic, coordinated
and cooperative human effort”. (……bring human
capital together) 2
 Introduction (cont..)
What is an Organization?
• The concept stems from the fact that the individual
alone is unable to fulfil all his needs and wishes,
hence the need to highlight the following
considerations:-
Co-ordination
• Co-ordination and efforts in the service of mutual
help.
• Goals to be achieved and some agreements
concerning these goals.
Common Goals
• The idea of achieving some common goals or
purpose through co-ordination of activities is very
important for a specific group of people with
common interests. 3
 Introduction (cont..)
 Division of Labor
• Goals can best be achieved: (1) if different people do
different things in a coordinated fashion. (2) by distributing
very widely the sub goals and the labor needed to achieve
them.
 Hierarchy of Authority
• Coordination not possible without some means of
controlling, guiding, limiting and managing the various units.
• Each position has to to ensure that its part of the job will be
done according to the plan as conceived by some Authority.
 DEFINITION
• An organisation is therefore the rational co-ordination of
the activities of a number of people for the achievement of
some common explicit purpose or goal through division of
Labour and function through a hierarchy of authority and
responsibility. 4
 Definition (cont..)
• “Organization behavior is the study and
application of knowledge of how people act or
behave within an organization”.
• “Organization behavior is a field of study that
investigates the impact that individuals, groups,
and structure have on behavior within
organizations for the purpose of applying such
knowledge towards improving an organization’s
effectiveness”.
• “People tend to be very effective at managing
relationships when they can understand and
control their own emotions and can empathize
with the feelings of others”.
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 Definition (cont..)
• Organizational Behavior (OB) is the study and
application of knowledge about how people,
individuals, and groups act in organizations.
• It does this by taking a system approach. That is, it
interprets people-organization relationships in terms
of the whole person, whole group, whole
organization, and whole social system.
• Its purpose is to build better relationships by
achieving human objectives, organizational
objectives, and social objectives.
• “Organization Behavior is concerned with the study
of what people do in an organization and how that
behavior affects the performance of the
organization.” 6
 Definition (cont..)
Organizational Behavior (OB) is
• The study of human behavior in the workplace,
• The interaction between people and the
organization,
• And the organization itself.

Organizational Behavior—What is it?

• Explaining,
• Understanding,
• Predicting, maintaining, and
• Changing employee behavior in an organizational
setting.
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 Multidisciplinary origins of OB
• Psychology: study of the individual
• Sociology: study of small group behavior
• Anthropology: study of cultures (corporate
culture)
• Economics: rational decision-making
• Political science: power and conflict; coalitions
and alliances
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 Reasons for studying OB
• Chart the evolution of management thought on
the nature of the organization
• Understanding of the organizational factors that
influence work
• Understanding of how the work environment
shapes organizational performance
And by answering these questions:
• What causes behavior?
• Why particular antecedents cause behavior?
• Which antecedents of behavior can be controlled
directly and which are beyond control? 9
 Major benefits of studying OB

• Develop skills to function effectively in the

workplace.
• Grow personally through insight into human
behavior.
• Enhance overall organizational effectiveness.
• Sharpen and refine common sense.
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 Practices of Successful Organizations
• Employment security to employees who are
working in an organization.
• High standards in selecting personnel in an
organization.
• Extensive use of self-managed teams and
decentralized decision-making in an organization.
• Comparatively high compensation based on
performance and it is useful to human resource
in organization.

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 Practices of Successful Organizations
• It provides extensive employee training in an
organization.
• Reduction of status differences between
higher management and other employees in
an organization.
• It involves to information sharing among
managers and other workers.
• It helps to employees promotion within an
organization.

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 Models of OB ..sound like Leadership styles)

1. Autocratic: The basis of this model is power with a

managerial orientation of authority. The employees
in turn are oriented towards obedience and
dependence on the boss. The employee need of
subsistence is met. The performance result is
minimal.

2. Custodial: The basis of this model is economic

resources with a managerial orientation of money.
The employees in turn are oriented towards security
benefits and dependence on the organization. The
employee need of security is met. The performance
result is passive cooperation.
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 Models of OB (cont…..)
3. Supportive: The basis of this model is leadership
with a managerial orientation of support. The
employees in turn are oriented towards job
performance and participation. The employee
need of status and recognition is met. The
performance result is awakened drives.

4. Collegial: The basis of this model is partnership

with a managerial orientation of teamwork. The
employees in turn are oriented towards
responsible behavior and self-discipline. The
employee need of self-actualization is met. The
performance result is moderate enthusiasm.
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 Models of OB (cont….)
• Although there are four separate models, almost
no organization operates exclusively in one. There
will usually be a predominate one, with one or
more areas over-lapping in the other models.
• The first model, autocratic, has its roots in the
industrial revolution. The managers of this type of
organization operate out of McGregor’s Theory X.
• The next three models begin to build on
McGregor’s Theory Y. They have each evolved
over a period of time and there is no one “best”
model. The collegial model should not be thought
as the last or best model, it all depends upon the
situation.
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 Basic Approaches in OB
Human Resources Approach
• This is concerned with the growth and development of
people towards higher levels of competency, creativity
and fulfillment, because people are the central
resource in any organization.
• This approach help employees become better in terms
of work and responsibility and then it tries to create a
climate in which they can contribute to the best of
their improved abilities.
• This approach is also known as 'supportive approach'
because the manager's primary role changes from
control of employees to providing an active support
for their growth and performance. 16
 Basic Approaches in OB
A Contingency Approach
• This implies that different situations require
different behavioral practices for effectiveness
instead of following a traditional approach for all
situations.
• Each situation must be analyzed carefully to
determine the significant variables that exist in order
to establish the more effective practices.
• The strength of this approach is that it encourages
analysis of each situation prior to action.
• Thus, it helps to use all the current knowledge about
people in the organization in the most appropriate
manner.
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 Basic Approaches in OB
Productivity/Results Oriented Approach
• It is an important approach for studying about results.
• Productivity is a ratio that compares units of output
with units of input. It is often measured in terms of
economic inputs and outputs.
• Productivity is considered to be improved, if more
outputs can be produced from the same amount of
inputs. But besides economic inputs and outputs,
human and social inputs and outputs also are
important.
• It is result oriented approach which is always considered
to be set task and goals which can be getting result in a
right time.
• It focuses for total quality management to get 100%
result in projects.
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 Basic Approaches in OB
Systems Approach (…elements/forces of
OB)
• A system is an interrelated part of an
organization or a society that interacts with
everyone related to that organization or
society and functions as a whole.
• Within the organization 'people' employ
'technology' in performing the 'task' that
they are responsible for, while the 'structure'
of the organization serves as a basis for
coordinating all their different activities. 19
 Basic Approaches in OB
• The social systems view emphasizes the
interdependence of each of these elements
within the organization, if the organization as a
whole is to function effectively.

• The other key aspect of the systems view of

organization is its emphasis on the interaction
between the organization and its broader
environment, which consists of social,
economic, cultural and political environment
within which they operate. 20
 Emerging Trends/Challenges/
Opportunities for OB
1: The Changing Social and Cultural Environment
– Developing Organizational/Business Ethics
and Well-Being
– An Increasingly Diverse Work Force

2: The Evolving Global Environment

– Understanding Global/cross cultural
Differences
– Global Learning

3: Advancing Information Technology

– IT and Organizational Effectiveness
– IT, Creativity, and Organizational Learning 21
 Emerging Trends/Challenges/
Opportunities for OB
4: Emerging Employment Relationships
– Psychological contract
– Downsizing
– Strategic alliances, Mergers and acquisitions
– Empowerment
– Teams and more teams
– Contingent/temporary workers,
Outsourcing, freelancers

5. Designing the organization structure

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Comments/observations/questions

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