Explaining Organizati onal Behavior (Chapter 1)
What is Organizati onal Behavior?
Organizational behavior (OB): “The study of the structure and management of organizations, their environments, and the actions
and interactions of their individual members and groups.” It refers to the activities and interactions of people in organizations.
An organization is a structured social arrangement where people interact and coordinate their activities to achieve collective goals
through a system of monitored and managed performance.
In OB, to solve a performance issue (like a bad lecture), you must analyze the entire system (context, organization, group, and
leadership) rather than simply attributing failure to the individual’s personality or effort.
How can behavior in organizati ons be explained?
The field explains behavior through several layers:
Internal Drivers behavior is shaped by Individual factors (personal traits), Group factors (team dynamics),
Management/Organization factors (formal structures), and Leadership processes (direction and influence).
External Context (PESTLE) the entire organization operates within a broader Political, Economic, Social, Technological,
Legal, and Ecological environment.
Time Perspective actions are influenced by the organization's past, present, and future.
How important is OB?
The primary barrier to achieving human aspirations is not a lack of intellect or equipment, but our ability to work together.
Most major man-made disasters and scandals are fundamentally caused by organizational and management factors.
Example Deepwater Horizon oil spill (2010) – The disaster was caused by eight overlapping systematic failures, including leadership
issues like managerial conflict, communication breakdowns where vital information was withheld, and risk management flaws where
cost-cutting took priority over safety assessments.
What does OB do?
Organizational Behavior is a social science that studies the attitudes and behaviors of individuals and groups within an
organizational context. Unlike natural sciences, which follow fixed laws (e.g., water boiling at 100°C), OB is less predictable because
human interactions do not yield guaranteed, linear results.
Goals of science:
Description – observing and documenting how people interpret their work environment.
Explanation – identifying the “why” by linking variables, such as how satisfaction drives performance.
Prediction – forecasting future group behaviors and trends, despite the lack of absolute certainty.
Control/change – applying findings to influence behavior and improve organizational outcomes.
Positi vism vs. Constructi vism
Positivism (quantitative) Constructivism (qualitative)
Description Focus on observable and quantified data. Focus on local meanings and interpretations.
Explanation Seeks universal laws through variables. Develops narrative based on context and time.
Prediction Deterministic; based on stable relationships. Probabilistic; based on shared understandings.
Control Manipulates variables to shape behavior. Stimulates self-awareness to trigger change.
Evidence-based management (EBMgt)
EBMgt: an approach that improves decision-making quality by using the latest and best available research evidence, alongside
organizational data and professional expertise, to manage people and organizations effectively.
,Personality (Chapter 6)
What is personality?
Personality: “The psychological qualities that influence an individual‘s characteristic behavior patterns, in a stable and distinctive
manner.”
Stable: consistent across time and different situations.
Distinctive: unique to each individual.
Nature vs. nurture: personality is influenced by both genetics and environment.
Why study personality?
To understand ourselves and how personality influences important life and work outcomes.
Helps explain behavior in different areas of life.
In organizations used to predict job performance.
Helps in selecting the right candidates.
How to assess personality?
Nomothetic approach: Idiographic approach:
Personality is largely inherited (nature). Focus on individual uniqueness.
Can be measured and compared across people. Uses open-ended methods.
Basis of psychometric tests (e.g., questionnaires). Traits are not comparable across people.
More time consuming and harder to interpret.
Personality types and traits
Types classify people, traits describe individuals.
Hippocrates: determined by bodily ‚humours‘
Sanguine, Phlegmatic, Melancholic, Choleric
Somatotypes: body size and shape
Mesomorph, Ectomorph, Endomorph
MTBI (Myers-Briggs Type Indicator): based on Jung’s theory
Sensing Intuiting
Thinking Feeling
Introvert Extravert
Judging Perceiving
Type A: ambitious, impatient, competitive / time-pressured, more hostile
Type B: relaxed, less focused on achievement, patient, enjoys leisure
The Big Five personality traits
Five broad dimensions that describe personality (not types, but trait clusters).
1. Openness: rigidity of beliefs and range of interests.
Inconsistent relationship with performance; may limit management potential.
2. Conscientiousness: desire to impose order and precision.
Strong positive effect on performance, salary, promotions, job satisfaction.
3. Extraversion: lever of comfort with relationship.
Mixed results (depends on job type), sometimes linked to performance and higher job level.
4. Agreeableness: the ability to get along with others.
Inconsistent relationship with performance; may limit management potential.
5. Neuroticism: tendency to maintain a balanced emotional state.
Negative effect on performance, salary, and status.
6. Honesty-Humility: sincerity, fairness, modesty, and lack of greed.
,Employee selecti on
Methods used to predict candidate performance and fit.
Psychometric tests
Not always strong predictors of performance
Cognitive ability tests good predictors
Personality tests (e.g., MBTI, Big Five) help assess collaboration and conflict tendencies
StrengthsFinder identifies individual strengths
Interviews
Conventional interviews poor predictors of future performance
Structured competency-based interviews more reliable (focus on key skills and behaviors)
Cybervetting
Using online information (e.g., social media) to evaluate candidates
LECTURE 2 – CULTURE & LEARNING
Organizati onal culture
Why study organizati onal culture?
Organizational culture is important because it helps us understand the hidden forces that shape employees’ behavior and
interactions within organizations. Studying culture allows us to:
Understand how culture develops and where it comes from.
Recognize how culture influences organizational behavior.
Improve adaptability and manage cultural change by maintaining, shaping, or replacing existing cultures.
What is organizati onal culture?
Culture: Organizational Culture:
Shared systems of knowledge and beliefs “The way we do things around here” (Deal & Kennedy)
A group’s way of life “How people behave when no one is watching” (Hofstede)
Learned behaviors shared within a group The “collective programming of the mind” shared by
organizational members
It influences how employees think, behave and interact.
Characteristi cs of organizati onal culture
Shared: culture is collectively experienced and reflected in shared values, norms and behaviors.
Pervasive: culture exists throughout the entire organization and influences many aspects of work.
Enduring: culture remains stable over time because members continuously reinforce it.
Implicit: many cultural influences are informal and unconscious rather than formally written down.
Anatomy of organizati onal culture
According to Schein, organizational culture consists of three levels:
1. Surface Manifestations: visible elements such as symbols, ceremonies, office
layout, heroes, and rituals. These are easy to observe but do not fully explain the
culture.
2. Values: share beliefs about what is important or acceptable. Values influence
standards of behavior, quality expectations, and codes of conduct.
3. Basic Assumptions: deeply rooted, unconscious beliefs about reality, human
behavior, and the organization’s relationship with its environment.
, Values and basic assumpti on: how culture develops
Organizational culture is created and spread throughout leadership and socialization. According to Robbins and Judge:
Culture often begins with the founder’s philosophy and values.
Top management reinforces these values through decisions and leadership behavior.
Employees learn organizational norms through socialization.
The socialization process includes three stages (Feldman):
1. Anticipatory stage expectations before joining the organization.
2. Accommodation stage adjusting and learning expected behaviors.
3. Role modelling observing others to understand acceptable behavior.
Types and traits of organizati onal culture
The Competing Values Framework (CVF) classifies organizational cultures using two dimensions:
Flexibility Stability
Internal focus External focus (Maintenance Positioning)
This creates four culture types:
1. Clan culture: teamwork, collaboration, employee involvement
Friendly and supportive environment.
2. Adhocracy culture: innovation, creativity, flexibility
Encourages risk-taking and adaptability.
3. Market culture: competition, productivity, results
Strong focus on performance and external success.
4. Hierarchy culture: structures, rules, efficiency, control
Clear authority and formal procedures.
Nati onal culture
Nati onal and organizati onal culture
National culture and organizational culture influence each other. National culture shapes organizational values, assumptions, and
structures through social norms and regulations. Organizations are also influenced by multinational workforces that introduce
different cultural practices.
At the same time, organizations can spread their own national values, regulations, products, and technologies to other countries,
influencing broader social norms.
Hofstede’s dimensions of nati onal culture
Hofstede developed several dimensions to compare cultures across countries.
Focus on individual goals vs group goals
Acceptance of unequal power distribution
Tolerance or avoidance of uncertainty and ambiguity
Aggressive/competitive vs passive/cooperative behavior
Long-term vs short-term focus
Stronger vs weaker gender role division