Chapter 1 - Introduction to Human 3.

Discipline
Behavior in Organization 4. Unity of Command
5. Unity of Direction
Evolution of HBO 6. Subordination of Individual Interest
1. Classical 7. Remuneration
2. Behavioral 8. The Degree of Centralization
3. OB Today 9. Scalar Chain
10. Order
Early Contributors to OB 11. Equity
1. Adam Smith 12. Stability of Tenure of Personnel
Economist 13. Initiative
The Wealth of Nations 14. Espirit de Corps
Division of Labor
Specialization of Tasks particularly in pin Bureaucratic Theory – Maximillian Karl
manufacturing. Weber (1920)
“Bureaucracy” as an ideal model of form
2. Charles Baggage of the organization.
British Mathematics Professor – On the 6 Characteristics of Bureaucracy
Economy of Machinery and Manufacturers 1. Specialization or division of Labor
reduce time, waste material, allows 2. Hierarchy of offices
attainment of high skill levels and more 3. Competent, qualified, and salaried
careful matching of people’s skills. officials
4. offices are bounded by written rules and
3. Robert Owen regulations
Welsh Entrepreneur 5. Impersonal authority, and
Owner of a Factory – recognized how 6. Organized files for record keeping
growing factory system was demeaning to
workers.

The Behavioral Era (Internal Reward)

‘Social Man” Theory
Early Contributors of the Classical Era
The Classical Era (External Reward) Mary Parker Follet
Scientific Management “Taylorism”, - Proponent of participatory management
“One Best Way Approach” (1912) and law of situation works.
- Earliest writers to recognize that
Principles of Scientific Management: organizations could be viewed from the
- Replacing rule of Thumb (traditional, perspective of individual and group
experience-based). behavior.
- Select, train, show and improve the - Managers and workers should view
workman through scientific method. themselves as partners – as part of
- Equally divided the work responsibly. common group.
- Collaboration (remove conflict among
workers). Chester Barnard
- Powerful theorist about the nature of
Administrative Theory – Henry Fayol corporate organizations
1. Division of work
2. Authority and Responsibility
- He viewed that organizations are made individuals, groups and structure
up of people who have interacting social have on behavior within the
relationships. organizations for the purpose of
2 types of decision making: applying such knowledge toward
1. Organizational improving an organization’s
2. Personal effectiveness. – Stephens P. Robbins
 Organizational behavior is a subset of
management activities concerned with
George Elton Mayo understanding, predicting and
Human Relations Movement influencing individual behavior in
- Hawthorne studies began in 1924 as an organizational setting. – Callahan,
attempt to improve worker productivity Fleenor and Kudson.
at the Western Electric Company’s  Organizational behavior is a branch of
Hawthorne Works in Cicero, Illinois. Social Sciences that week to build
theories that can be applied to
Hawthorne Experiment predicting, understanding and
- Where he discovered that job controlling behavior in work
satisfaction increased through employee
organizations. – Raman J. Aldag
participation in decisions rather that in
short term rewards and incentives.  Organizational behavior is the study
and application of knowledge about how
Hawthorne Effect people act within an organization. It
- Behavioral studies change their is a human tool for human benefit. It
performance in response to being applies broadly to the behavior of people
observed. in all types of organization. –
Newstrom and Davis

Organizational Behavior Today

- Organizational behavior encompasses
ideas introduced by dozens, and Chapter 2 - Organizational Behavior
sometimes hundred years ago. Trends in OB
- Contingency Approach is logical
because organizations obviously differ Continuing Globalization
in size, objectives, and environment - Organizations are no longer constrained
uncertainty. by national borders. The world became
- Organizational behavior must be a global village.
applied and studies in a contingency 1. Increased Foreign Assignment
framework. - Transferred to your employer’s
operating division in another country.
Different views/meaning of 2. Working with People in Different
Organizational Behavior Today Cultures
 Organizational behavior is directly - You will find yourself working with
concerned with the understanding, bosses, peers, and other employees born
production and control of human and raised in different cultures.
01J9GDSKQSB25K51A1DYA6CJ1P
behavior in organizations. – Fred
Workforce Demographics and Diversity
Luthans.
- Diversity refers to differences between
 Organizational behavior is field of study people in an organization and it
that investigates the impact that
 compasses many things such as race, Job Sharing – Under this arrangement,
gender, marital statues, ethnic group, age, two part-time employees perform a job that
personality, tenure, education, government, one full time employee might hold.
political beliefs and many more aspects Work From Home – Work being done
that make people difference from each remotely, instead of at an office full time
other. employee might hold.
(Republic Act No. 10911, otherwise Skeleton Work Force – Refers to a work
known as “The Anti-Age Discrimination management where a minimum number of
in Employment Act.” (Act), was signed employees is required to man the office to
into law to promote equal opportunities in render service when full staffing is not
employment for everyone. The Act possible.
encourages employers to hire individuals
on the basis of their abilities,
knowledge, skills and qualifications,
rather than their age. It likewise prohibits
arbitrary age limitations in employment Chapter 3 - Attitudes and Job
and advances the right of all employees and Satisfaction
workers, regardless of age, to be treated
equally in terms of compensation, benefits, Attitudes
promotion, training, and other employment. - Evaluative statements – either favorable
or unfavorable - concerning objects,
Employee Relationship people, and events.
- The employment relationship is legal
link between employers and employees. Three Components of Attitude
It exists when a person performs work 1. Cognitive
or services under certain conditions in - The thought, perception or ideas of the
return for remuneration. person toward the object of the attitude.

2. Affective
- About emotional reaction or feeling of
Networked Organizations the person toward the object of the
- It allows people to communicate and attitude as like or dislike.
work together even though they may be - Emotional or feeling of segment of an
thousands of miles apart. As the attitude.
employees do their jobs by linking to
others through networks, managers 3. Behavioral
must develop new skills. OB can provide - Attitudes that develop as a direct result
valuable insights to hope skills. of certain behaviors.
- Intension to behave in certain way
Employee Well-Being at Work toward someone or something.
- HR leaders are prioritizing employee
well-being and mental health. This Factors that impact employees’ attitudes
focus on nurturing employee well-being at work
is critical to developing workplace 1. Job Satisfaction
resilience (Meister, 2021). - Refers to the feelings people have
Compressed Work Week – Employees toward their job.
work usual number of hours (40 hours) but - “A person with high level of job
the work is fewer than five days per week. satisfaction holds positive attitudes
 about the job, while a person who is - Employee satisfaction raises employee
dissatisfied with his or her job holds productivity, and higher productivity means
negative attitudes about the job.” greater service and value to your customer.

2. Job Involvement
- Measures the degree to which a person
identifies psychologically with his or her
job and considers his or her perceived Chapter 4 – Personality and Emotions
performance level important to self-
worth. What is Personality?
- It encompasses the relatively stable
3. Organizational Commitment feelings, thoughts, and behavioral
- State in which the employees identifies patterns a person has.
with a particular organization and its - It is a concept describing the growth
goals, and wishes to maintain and development of a person’s whole
membership in the organization. psychological system.
- “High job involvement means
identifying with one’s specific job, while Determinants of Personality
high organizational commitment means 1. Heredity
identifying with one’s employing 2. Environment
organization. 3. Situation

Job Satisfaction – The general attitude

toward his or her job. It is the level of 1. Heredity (Nature)
contentment employees feel with their job. - Refers to those factors that were
This goes beyond their daily duties to cover determined at conception. It includes
satisfaction with team members/managers, physical stature, facial attractiveness,
satisfaction with organizational policies, gender, temperature, muscle
and the impact of their job on employees’ composition and reflexes, energy level,
personal lives. and biological rhythms which are
generally considered to be either
completely or substantially influences
The Effect of Job Satisfaction on by who your parents are.
Employee Performance
1. Satisfaction and Absenteeism 2. Environment (Nurture)
When satisfaction is high, absenteeism - Among the factors that exert pressures
tends to be low and when satisfaction is on our personality formation are the
low, absenteeism tends to be high. culture in which we are raised; our early
conditioning; the norms among our
2. Satisfaction and Turnover family, friends, and social groups; and
Job satisfaction is inversely related to other influences that we experience.
turnover intention and low turnover has These environment factors play
been shown to increase organizational substantial role in shaping our
productivity and performance. personality.

3. Situation
Job Satisfaction and Customer - A third factor, the situation, influences
Satisfaction the effects of heredity and environment
 on personality. An individual’s
personality, although generally stable Neuroticism – being anxious, irritable,
and consistent, does chance in different temperamental, and moody.
situations. The different demands of
different situations call forth different
aspects of one’s personality. So we
shouldn’t look at personality patterns in What are emotions? – Emotions are
isolation. strong feelings deriving from one’s
circumstances, mood, or relationships with
Personality Traits – Enduring others. Emotions are responses to
characteristics that describe on individual’s significant internal and external events.
behavior.
- Big Five Personality Traits Three terms are closely intertwined:
- Myers-Briggs Type Indicator (MBTI) 1. Affect
2. Emotions
The Myers-Briggs Type indicator 3. Moods
- It is a 100-question personality test that
asks people how they usually feel or act 1. Affect
in particular situations. - Is generic term that covers a broad
- On the basis if the answers individuals range of feelings that people experience.
give to the test, they are classified as It’s and umbrella concept that
extroverted or introverted (E or I), encompasses both emotions and moods.
sensing or intuitive (S or N), thinking or
feeling (T or F), and perceiving or 2. Emotions
judging (P or I). These classifications - Are intense feelings that are directed at
are then combined into 16 personality someone or something.
types.
3. Moods
Big Five Personality Traits - Are feelings that tend to be less intense
- In recent years, an impressive body of than emotions which lack a contextual
research supports that five basic stimulus.
dimensions underline all others and
encompass most of the significant
variation in human personality. Emotional Labor
- A situation in which an employee
OCEAN expresses organizational desired
Openness – being curious, original, emotions during interpersonal
intellectual, creative, and open to new ideas. transactions.

Conscientiousness – being organized,

systematic, punctual, achievement oriented, Felt vs. Displayed emotions
and dependable. The key point here is that felt and displayed
emotions are often different. In fact, many
Extraversion – being outgoing, talkative, people have problems working with others
sociable, and enjoying social situations. simply because they naively assume that the
emotions they see others display is what
Agreeableness – being affable, tolerant, those others actually feel.
sensitive, trusting, king, and warm.
Felt Emotions  Self-management the ability to
- An individual actual emotion. manage one’s own emotions and
Displayed Emotions impulses.
- Organizationally required and  Self-motivation the ability to
considered appropriate in a given job. persist in the face of setbacks and
failures.
Variety  Empathy the ability to sense how
- There are dozens of emotions. They others are feeling.
include anger, contempt, enthusiasm,
 Social Skills the ability to handle
envy, feat, frustration, happiness, hate,
the emotion of others.
hope, jealousy, joy, love, pride, surprise,
and sadness. One way to classify them is
Research shows that, for better or worse,
by whether they are positive or
emotions influence employees’ commitment,
negative.
creativity, decision making, work quality,
- Positive emotions like happiness and
likelihood of sticking around-and you can
hope express a favorable evaluation or
see the effects on the bottom line. So it’s
feeling.
important to monitor and manage people’s
- Negative emotions like anger or hate
feelings as deliberately as you do their
express the opposite.
mindset.
Intensity
- People give different responses to
Chapter 5 - Decision Making
identical emotion-provoking stimuli. In
some cases this can be attributed to the
Link between Perception and Decision-
individual’s personality and sometimes,
Making
result of the job requirements.
Perception
Alexithymia (Lack of Emotion) - Process with which individuals detect
and interpret the environment. Our
- People who suffer from alexithymia
rarely cry and are often seen by others perception of the environment is not
as bland and cold. Their own feelings entirely rational.
make them uncomfortable, and they’re
not able to discriminate among their Decision-Making
different emotions. In addition, they’re - It refers to making choices among
often at a complete loss to understand alternative courses of action – which
what others around them feel. may also include inaction. (Conger,
Kanungo, 2017).
Emotional Intelligence
- Refers to an assortment of noncognitive Two Main factors in Decision-Making
skills, capabilities, and competencies Who is going to make the decision?
that influence a person’s ability to What is the quality of the decision?
succeed in coping with environmental
demands and pressures. It’s composed of Two Types of Decisions
five dimensions. Programmed
- Straightforward decisions that occur
 Self-awareness being aware of what
frequently enough that an automated
you’re feeling.
response is developed.
 2. Bounded Rationality
Non-programmed A process of making decisions by
- Unique and require conscious thinking, constructing simplified models that extract
informational gathering, and careful the essential features from problems
consideration of alternatives. without capturing all their complexity.
Steps:
1. Limited search for criteria and
Assessing Ethical Concerns in Decision alternatives – familiar criteria and
Making easily found alternatives.
Assesing Ethical Concerns 2. Limited review of alternatives –
- Is decision fair? focus on alternatives, similar to
- Will I feel better or worse about myself those already in effect.
after I make this decision? 3. Satisficing - selecting the first
- Does this decision violate ant alternative that is “good enough.”
organizational rules?
- Does this decision break any laws? 3. Intuitive Decision-Making
- How would I feel if this decision was It occurs outside conscious thought; it relies
broadcast on the news? on holistic associations, or links between
disparate pieces of information; and its
effectively charged, meaning I usually
Three Categories of Decision engages the emotions.
1. Strategic Decisions Uses:
- Set the course of an organization 1. Increases with experience
2. Can be powerful complement to
2. Tactical Decisions rational analysis in decision making.
- Are decisions about how things will get
done. 4. Linear Model of Decision Making
Linear decision making involves listing
3. Operational Decisions positive and negative factors of each
- Refers to decisions that employees make decision alternative (Lumen, 2012).
each day to make the organization run. If you’ve ever made a list of pros and cons
around a certain decision, then you’ve
Decision Making Models embarked on linear decision making.
1. Rational Decision-Making
The rational decision-making model relies 5. Garbage Can Model
on a number of assumptions, including that The garbage can model is one where
the decision maker has complete managers use information about problems,
information, is able to identify all the participants, solutions and opportunities
relevant options in an unbiased manner, and haphazardly to generate ideas and potential
chooses the option with the highest utility. decisions (Lumen, 2012).
Steps:
1. Define the problem
2. Identify the decision criteria Common Biases and Errors in Decision-
3. Allocate weights to the criteria Making
4. Develop the alternatives 1. Overconfidence Bias
5. Evaluate the alternatives As managers and employees become more
6. Select the best alternative knowledgeable about an issue, the less
likely they are to display overconfidence.
 Better decisions are those that incorporate
2. Anchoring Bias novel and useful ideas or creativity. An
A tendency to fixate on initial information organization will tend to make better
and fail to adequately adjust for subsequent decisions when creative people are involved
information. in the process.

3. Confirmation Bias Creativity

Seeking out information that reaffirms our The ability to produce novel and useful
past choices and discounting information ideas. It helps people to:
that contradicts past judgements.  See problems others can’t see
 Better understanding the problem
4. Availability Bias  Identify all viable alternatives
Basing judgements on information that is
 Identify alternatives that aren’t readily
readily available.
apparent.
5. Escalation of Commitment
Staying with a decision even when there us
Three-Stage Model of Creativity
clear evidence that it is wrong.
1. Problem Formulation – Identify a
problem or opportunity that requires a
6. Risk Aversion
solution as yet unknown.
Preferring a sure thing over a risky
outcome. 2. Information Gathering - of possible
solutions incubate in an individual’s
mind.
7. Hindsight Bias
3. Idea Generation – Develop possible
Believing falsely that we could have
solutions from relevant information and
predicted the outcome of an event after that
outcome is already known. knowledge.
4. Idea Evaluation – Evaluate potential
solutions and identify the best one cause
of creative behavior:
Handling a Problem
When determining a course of action, there  Creative Potential – Expertise is
are five different courses of action for the single most important predictor
handling a problem: of creative potential.
1. Corrective Action – finding a solution  Creative Environment –
for the problem once it has occurred. Motivation and Rewards and
2. Interim Action – allowing the decision recognition.
makes to postpone the decision
3. Preventive Action – aim to never
letting the cause of the problem happen.
4. Contingency Action – provides a
backup plan in the event there is a
problem.
5. Adaptive Action – the decision is made
to adapt to the situation rather than
spend the time or money to fix it or
eliminate it.

Creativity in Organizations
Chapter 6 – Theories of Motivation

Motivation
- The process that account for an
individual’s intensity, direction, and
persistence of effort toward attaining a
goal.

Extrinsic Motivation
- Motivated to perform an activity to earn
a reward or avoid punishment.

Intrinsic Motivation
- Motivated to perform an activity for its
own sake and personal rewards.

Work Motivation
- Set of internal and external forces that
cause an employee to choose a course of
action and engage in certain behaviors.
- It is a complex combination of Theories of Motivation
psychological forces within each person, 1. The Economic Man
and employers are vitally interested in According to Frederick Taylor man work
the following elements: to fulfil his economic needs. Long hard
work comes to high pay to take care of his
Three Elements material and physiological need.
1. Direction and focus of the behavior - High Productivity = More Profits
2. Level of the effort provided (Application of Scientific Methods)
3. Persistence of behavior
2. The Social Man
The experiment of Elton Mayo at the
Hawthorne plant of Western Electric
Company in the 1930s showed that man is
largely gratified in a social milieu.
- Group Work = High Individual
Performance

3. The Complex Man

Abraham Maslow averred that man’s needs
fall into a hierarchy of relative prepotency.
Needs ranges from most basic to most
intricate.
- As each needs becomes substantially
satisfied, the next becomes
dominant.
 5. The Three-Tiered Satisfied Man
Clayton Alderfer proposed a 3-tiered model
of needs progressing from existence to
relatedness to growth (ERG).
- Employees are initially interested in
satisfying their Existence needs.
- Employees needs to be understood and
accepted by the people above, below,
and around the employee at work
Relatedness needs.
- Employees involve the desire of self-
esteem and self-actualization Growth
needs.
4. The Motivated Man
Frederick Herzberg found out from his
Pittsburgh studies that individual workers
have two different categories of need that
are essentially independent of each other
but affect behavior in different ways.
Two Factor Theory of Motivation
- Hygiene Factors – Produce no real
growth in the worker’s motivation and
output. But the absence of this makes
him dissatisfied.
- Satisfying Factors – Act primarily as
motivators, however, their absence only
rarely leads to dissatisfaction.
6. The Achiever
David McClelland postulated with his
achievement motivation theory that people
with high needs to achieve do achieve more
that those with low need and with no need
at all.
McClelland’s theory of needs states that
achievement, power, and affiliation are three
important needs that help explain the
motivation.
 8. the Managed Man
Douglas McGregor argues that ”…a
manager’s effectiveness is a function of such
assumption about human nature, and that his
leadership behavior will be crucially affected by
them..”
Theory X and Theory Y
- Theory X gives importance to
supervision (closed, autocratic
management style), while Theory Y
stresses on rewards and recognition
(open and participative).

7. The Expectant Man

Victor Vroom developed the Expectancy
Model in 1964. It argues that the strength
of a tendency to act in a certain way
depends on the strength on an expectation
that the act will be followed by a given
outcome and on the attractiveness of that
outcome to the individual.
Three Factors:
- Valence how much one wants a reward. 9. The Learning Reinforced Man
- Expectancy one’s estimate of a Man learns from its environment and
probability that the effort will result in a greater control of this environment
successful performance. improves his development. B.F. Skinner and
- Instrumentality one’s estimate of that other scholars argues that reinforcement
performance will result in receiving the theory indicates that behavior is a function
reward. of its consequences and that individual
Valence x Expectancy x Instrumentality behaviors can be changed through
= Motivation reinforcement, punishment and extinction.
- Positive Reinforcement provides
favorable consequence that encourages
repetition of a behavior.
- Negative Reinforcement encourages
specific behaviors by removing or
avoiding negative consequences or
stimuli.
- Punishment it implies removing
positive consequences so as to lower the
 probability of repeating undesirable
behavior in the future.
- Extinction implies absence of
reinforcements.