Ch 1 Introduction to OB

7/17/2019 Ch 1 Introduction to OB

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All Rights ReservedUnderstanding Organizational Behaviour Oxford University Press Malaysia, 2009 Ch. 1: 1


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All Rights ReservedOrganizational Behaviour Oxford University Press Malaysia, 2009 Ch. 1: 2

Introduction toOrganizational

Behaviour

CHAPTER

1


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All Rights ReservedOrganizational Behaviour Oxford University Press Malaysia, 2009 Ch. 1: 3

Learning Objectives

In this chapter, you will:

Explain what organizational behaviour (OB) is.

Understand why we study OB.

Describe three levels of analysis.

earn about the history of OB.

!dentify disciplines that contribute to OB. Explain current OB challenges in global organizations.


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1.1 What is an Organization?

"n organizationrefers to a group of two or#ore individuals wor$ing together to achieve a

co##on goal."n organization #ay refer to different types of

organizations besides businesses includinggovern#ent agencies% statutory bodies% non&

govern#ental organizations ('O)%associations% clubs and #any types offor#alized groups.


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ission

Figure 1.1 !nterrelationship between #ission% goals% strategy and plan.

oals *trategy +lans

1.1.0 Mission, Goals, Strategy

an !lan


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"n organization exists due to its #ission or

purpose that as$s the ,uestion -hy are we

here/0 1o answer that ,uestion% organizations #ay

develop several goals or ob2ectives to translate

the #ission into so#e specific #easurable

perfor#ance #easures.

1.1.1 Mission


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"ision

-e want to beco#e a successful alaysianauto#obile #anufacturer globally by being custo#er

oriented and producing co#petitively priced andinnovative ,uality products.0(http344www.proton.co#4about5proton4corp5id4vision.php)

Mission +roton is -guided in 6its7 daily efforts by a #ission that

,ualifies what 6it does7 in the #ar$etplace.0(http344www.proton.co#4about5proton4corp5id4personality.php)

1.1.# "ision an Mission o$

!roton


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*trategy3 " broad action plan to interact with theenviron#ent in order to achieve the long&ter#goals of the organization.

*trategic #anage#ent3 " planning process thatinvolves the for#ulation and i#ple#entation ofstrategies to achieve the organization0s long&ter# goals by analysing its internal and externalenviron#ents.

1he for#ulation of strategy would lead to plansor how to achieve the goals.

1.1.% Strategy


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+lans can be developed at various levels8strategic% tactical or operational8within thecontext of strategic #anage#ent.

*trategic plans8plans that are developed bythe top level of #anage#ent.

1actical plans8strategic plans are translatedinto tactical plans at the division or business unitlevel.

Operational plans8further refined atdepart#ental level.

1.1.& !lans


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Organizational 'eha(iouris a field of studythat investigates how individuals% groups and

structures i#pact behaviour within organizationsand how such $nowledge can be used toi#prove the effectiveness of the organizations.

OB involves the syste#atic study of behaviour%

processes and structure found in anorganization.

1.# What is Organizational

)eha(iour?


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*+plain: 1o identify and explain pheno#enon

that occurs within an organization.

lari$y: 1o clarify and forecast behaviours that

are ta$ing place in organizations.

ontrol: 1o control the behaviours that happen

in organizations.

1.% -hree Goals o$ Stuying

Organizational )eha(iour


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OB focuses on three areas% na#ely% individuals%

their interactions with other individuals% and the

organization as the context within which we areobserving these interactions. !n #a$ing these

observations% we #ay have to #a$e certain

assu#ptions.

Contingency Level of analysis

1.& )asic ssu/ptions o$ O)


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9ontingency3 OB is dependent on certain

factors that #ay influence the behaviour that is

being observed.9ontingency perspective whereby

organizational behaviour is dependent upon

certain factors that influence the interaction orbehaviour.

1.&.1 )asic ssu/ptions:

ontingency


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Table 1

Cha!ter "ndividual Cha!ter #rou! Cha!ter Organization

2

2

3

4

4

5

Per!e"tion

#earning

Personality

$%otion

&tress

Attit'des and(ehavio'r

Motivation

)

*

9

+0

+0

+0

++

ro'"s - .ea%s

/o%%'ni!ation

e!ision Ma1ing

Poer

nfl'en!e

Politi!s

#eadershi"

+2

+2

+3

+4

+4

/'lt're

/reativitynnovation

&tr'!t're

Organiationalevelo"%ent

Managing /hange

!ndividual level

1.&.# )asic ssu/ptions:

-hree e(els o$ nalysis

ro'" level Organiation level


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!n studying organizational behaviour in an

organization% #any individual factors can be

ta$en into consideration."#ong the factors that can influence the

behaviour of individuals are their perceptions%

the way they learn% their personalities and

abilities% the way they control their e#otions and

wor$ stress% their attitudes at wor$ and

#otivation.

1.&.#.1 Ini(iual e(el nalysis


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e need to understand behaviour that happendue to the individual0s interaction with otherindividuals at the group level.

Behaviour at the group level involves how onebeco#es a #e#ber of a group% tea#wor$% theway one co##unicates% #a$es decisions andhandles interpersonal conflicts in a group setting.

e also have to have s$ills and a goodunderstanding of power% influence% politics andleadership in order to be effective wor$ing ingroups.

1.&.#.# Group e(el nalysis


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1he third level of analysis in OB can be carried

out by loo$ing at the whole organization.

e can analyse the culture% structure anddesign of the organization.

e also need to understand how the

organization encourages creativity and to#aintain the sustainability via organizational

develop#ent.

1.&.#.% Organization e(el

nalysis


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1hroughout the history of hu#an civilization%

#anage#ent and organizational behaviour have

been around3

Egyptbuilding of the pyramids

South AmericaInca, Machu icchu

!ree" empireAle#ander the !reat

$oman empire%ulius Caesar

China empire!reat &all of China

1. 2istory o$ O)


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Islam empire' Caliphs

(ttoman empire

Coloni)ation by the *ritish, !erman,%apanese, Italian and +rench

!n alaysia% docu#ents such as Sejarah Melayu

(1he alay "nnals) and Hikayat Hang Tuahare

replete with exa#ples related to organizational

behaviour3

1. 2istory o$ O) 3cont.4


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he rise and do-nfall of the Malaccanempire and sultanate.

he development of the Malay "ingdoms as-ell as the strategic alliances -ith "ingdomsof Siam, China and Ma/apahit.

he confrontations and coloni)ations of the

ortuguese, 0utch, Siamese, *ritish and%apanese.

1. 2istory o$ O) 3cont.4


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:ieroglyphics in the to#bs and pyra#ids in

Egypt (;== B9)

?irst !ndustrial @evolution (A=) in

England and Europe

*econd !ndustrial @evolution (A=CAF=) in the

United *tates% Gapan% @ussia% 9hina and !ndia

1..1 2istorical *(iences o$

Manage/ent an O)


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nthropology "nthropology is a discipline thatstudies the relationships betweenindividuals and their environ#ent8organizational culture.

*cono/y !n OB% the econo#ic perspective isborrowed in order to understand howindividuals #a$e decision.

!sychology +sychology is one of the disciplinesthat have a #a2or influence on

organizational behaviour8 organizationalpsychology.

1.5 ontri'uting 6isciplines

to O)


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!olitical Science 1opics such as power% authority andpolitics are contributions fro# the

discipline of political science.Sociology *ociology refers to the study of social

syste# and hu#an interactions insocial situations.

2u/anities e learn better about hu#aninteractions in social situations.


to O) 3cont.4


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*ucation 1he educational fields provided aplethora of theories on learning styles asapplied in training and develop#ent even

though so#e #ay have originated fro#psychology.


to O) 3cont.4


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lobalization

Huality

1echnology Ethics

Diversity

'ation building

1.7 urrent O) hallenges

in Glo'al Organizations


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"s businesses and industries grow and

beco#e global% alaysian organizations

are doing business in international

settings that re,uires a better

understanding of organizational behaviour

across national boundaries.

1.7.1 Glo'alization


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!n order for alaysian co#panies to export

their products to European Union or the United

*tates% they #ust subscribe and be accreditedto ,uality standards such as !*O F===% !*O

A===% HF===% :""9+% +% *+ and #any

other regulatory re,uire#ents.

1.7.# 8uality


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ocal co#panies #ust further developtechnological capabilities in order to be #ore

co#petitive globally 1hese develop#ents include leaner production%

lower costs% zero defects supply and flexible#anufacturing. ?or exa#ple3

+roton should #ove to #odular production

techni,ues whereby $ey functions can be

delegated to the first&tier suppliers.

1.7.% -echnology


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+roton #ust have e&business infrastructure inplace to enable it to #axi#ize #argins.

+roton0s vendors should engage in costreduction exercises% upgrading of its @IDcapabilities and #aintaining ,uality as per theH* F=== standards.

1.7.% -echnology 3cont.4


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1he present focus on corporate social

responsibility and transparency in both the

private and public sectors necessitates thesensitivity of #anagers to be heightened on

issues relating to ethical behaviour in the

wor$place.

1.7.& *thics


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"s a #ulticultural and #ulti&ethnic country%

alaysians have been exposed to wor$ing

in environ#ents where people co#e fro#different cultural bac$grounds.

1.7. 6i(ersity


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'ine strategic challenges to beco#e a fully industrializedcountry3

hallenge 1: 1o for# a nation that stands as one.

hallenge #: 1o produce a alaysian co##unity that hasfreedo#% strength and full of self&confidence.

hallenge %: 1o develop a #ature de#ocratic co##unity.

hallenge &: 1o for# a co##unity that has high #orale% ethicsand religious strength.

hallenge : 1o cultivate a co##unity that is #atured andtolerant.

1.7.5 9ation )uiling


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hallenge 5: 1o for# a progressive science co##unity.

hallenge 7: 1o cultivate a co##unity rich in values andloving culture.

hallenge : 1o ensure the for#ation of a co##unity with afair econo#y.

hallenge ;: 1o cultivate a prosperous co##unity.

1hese challenges are very relevant to researchers in the fieldof OB as they invo$e various levels of analyses (individual%group and organizational) as well as the i#pact of society atlarge.

1.7.5 9ation )uiling 3cont.4


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All Rights ReservedUnderstanding Organizational Behaviour Oxford University Press Malaysia 2009 Ch 1 34

A. hat is organizational behaviour/

;. hat are the goals of studying organizationalbehaviour/

J. hat are the three levels of analysis inorganizational behaviour/

>. ive exa#ples of the contributions of other

disciplines to organizational behaviour.. hat organizational behaviour challenges do

global organizations face/

1.

Ch 1 Introduction to OB

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