Organizational

Behavior :
Basic Concepts, Decision-
Making, Values and Ethics
at the Workplace
“ An organization, no matter how
well designed, is only as good
as the people who live and
work in it.”

-Dee Hock
founder and former CEO of the Visa credit card association.

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Organizational
Behavior (OB)
╸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
toward improving an organization’s effectiveness.

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1 BASIC CONCEPTS
Organizational Behavior
Basic Concepts of
Organizational Behavior

The Nature of People The Nature of the Organization

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Basic Concepts of
Organizational Behavior

Nature of
Nature Of People
Organization

Mutual Interest
Individual Difference Perception Social System
System

A Whole Person Motivated behaviour Ethics

Desire for
Value of the person
Involvement

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THE
NATURE OF
PEOPLE

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Individual Differences

Definition: Use in the Organization:

• Each person is different • Individual differences mean
f r o m one another, just as that management can
each person’s DNA profile is motivate employees best by
different. treating them differently.

• the impact of nature • Individual differences

require that a manager’s
• the influence of nurture approach t o employees be
individual n o t statistical.

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Perception

Definition: Use in the Organization:

• which is the unique way on which a • Managers must learn to
person sees, organizes and interprets
things expect perceptual differences
• People use an organized framework th at among their employees.
they have b u i l t o u t o f a lifetime o f
experiences and accumulated values
• People are also capable o f selective
• Accept people as emotional
perception, in which they tend t o pay beings, manage them in
attention t o those features o f their wo rk individual ways.
environment tha t are consistent w ith or
reinforce their own expectations.

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Whole Person

Definition: Use in the Organization:

• We employ the whole person n o t just • develop a better employee bu t
their brains or skills Ergonomics is the also a better person in terms of
science o f f i t t i n g workplace conditions growth and fulfillment.
and jo b demands t o the capabilities o f
the workin g population
• jobs shape people somewhat as
• Skill does n o t exist apart f r o m
they perform them
background o r knowledge. People
functio n as total human beings. • must care about the job’s effect
on the whole person.

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Motivated
Behavior

Definition: Use in the Organization:

• From psychology we learn tha t normal
• Management then has two ways t o
behavior has certain causes.
motivate people:
• These may relate t o a person’s needs or • show them how certain actions
the consequences that result f r o m these will increase their need fulfillment
acts.
• threaten decreased need
fulfillment if they follow an
• These needs are expounded in Maslow’s
undesirable course of action.
Hierarchy o f Needs.

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Desire for
Involvement

Definition: Use in the Organization:

• Many employees today are actively ╸Management should not treat
seeking opportunities at w o rk t o people as “pair of hands” or an
become involved in relevant decisions,
economic tool.
thereby co ntrib uting their talents and
ideas t o the organization’s success.

• They hunger f o r a chance t o share what

they know and to learn from the
experience.

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Value of the
Person

Definition: Use in the Organization:

• People deserve t o be treated differently
• Management should not treat
f r o m other factors o f prod uction (land,
capital, technology) because they are o f people as “pair of hands” or an
higher order in the universe. economic tool.

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THE
NATURE
OF
ORGANIZATION
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Social System

Definition: Use in the Organization:

• Organizations are social systems • provides a framework f or
governed by social laws and analyzing organizational
psychological laws.
behavior issues.

• People’s behaviors in an organization are

• It helps make organizational
influenced by the g ro u p as well as
individual drives. behavior problems
understandable and manageable.
• Two types o f social system exist side by
side in organizations, the formal and
in fo rmal system.

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Mutual Interest

Definition: Use in the Organization:

• Symbiotic relationship between • Management needs employees to
organizations and people. help them reach organizational
objectives;
• Super ordinate goal - are goals that get
people f r o m opposing sides t o come
together and wo rk toward a co mmo n • people need organizations t o
end result. help them reach individual
- breaks down barriers objectives
- encourages people t o see each
other as just people
- Can help overcome differences
between the groups.

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Mutual
Interest
Gives a superordinate
goal for employees, the
organization and the
society.

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ETHICS

Definition: Use in the Organization:

• Organizations must treat employees in • When the organization’s goals
an ethical fashion. and actions are ethical, it is more
likely that individual,
• Organizations establish code o f ethics, organizational, and social
publicized statements o f ethical values, objectives will be met.
provide ethics training, reward
employees f o r notable ethical behavior,
publicized positive role models, and set
u p internal procedures t o handle
misconduct.

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Before we start with the next part of our Presentation – Here
is a brief case study
A group of children were playing near two railway tracks, one still in use while the
other disused.

Only one child played on the disused track, the rest on the operational track.

The train is coming, and you are just beside the track interchange. You can make the
train change its course to the disused track and save most of the kids.

However, that would also mean the lone child playing by the disused track would be
sacrificed. Or would you rather let the train go its way?

Let's take a pause to think what kind of decision we could make

 Most people might choose to divert the course of the train, and sacrifice only one child. You
might think the same way, I guess.
 We should not try to change the course of the train because the kids playing on the operational
track should have known very well that track was still in use, and that they should have run away
if they heard the train's sirens.
 Explanation:
If the train was diverted, that lone child would definitely die because he never thought the
train could come over to that track! Moreover, that track was not in use probably because it was
not safe.
Also, If the train was diverted to the track, we could put the lives of all passengers on
board at stake!
While we are all aware that life is full of tough decisions that need to be made, we may
not realize that hasty decisions may not always be the right ones.

'Remember that what's right isn't always popular...

and what's popular isn't always right.'
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2 DECISION MAKING
Organizational Behavior
DECISION MAKING
Definition

- It is the process of examining your possibilities,

options, comparing them and choosing a course of
action.
- Choices from two or more alternatives
- Decisions can be either programmed or non-
programmed.
 Programmed: Decisions that are simple and routine and have a pre-established
decision making plan.
 Non programmed: Decisions that are new and complicated and require thought and
creativity

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DECISION MAKING
Factors that can affect
Decisions

• Perception – “know before you make.”

• Priority – without knowing what you want there can’t be any decision made
about.
• Acceptability – accept whether its hard or easy if you think your decision is
correct.
• Risk
• Demands – make sure that no one gets hurt by your decision.
• Style – don’t be outdated.
• Resources – make your way with what is available. don’t ask for more in the
region of scarcity.
• Judgment – go on with the correct decision

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DECISION MAKING
The six (6) C’s

• Construct a clear picture of precisely what must be decided.

• Compile a list of requirements that must be met.
• Collect information on alternatives that meet the requirements
• Compare alternatives that meet your requirements.
• Consider the WHAT MIGHT GO WRONG factor with each alternative.
• Commit to a decision and follow through with it.

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Decision Making
Process
Predict the Immediate
and Long-term Act /
Gather Information consequences Take Action

2 4 6

1 3 5 7

Identify the Problem Identify Alternatives Make the Best Choice Evaluate
Decision Making
Helpful Hints DON’Ts
– Make assumptions
DO’s :
– Procrastinate
• Clearly identify the decision to be made
• Involve people qualified to help in the – Jump to conclusions
decision making – Make uninformed decisions
• Identify the context of the decision (the – Favour one decision prior to gathering the facts and
bigger picture) evaluating the alternatives
• Identify all alternatives
– Allow only technical people to make the decisions
• Assess each alternative
– Attempt to make a decision in isolation of the context
• Assess the risks
– Let emotion override objectivity
• Consider your “gut feel”
• Make the decision and stick to it

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3 VALUES
Organizational Behavior
CONCEPT OF
VALUES

 Values are t h e basic convictions t h a t give us a sense of right a n d

wrong, good a n d bad.
 Thus values form t h e basis of ethical behavior.
 A val ue s y s t e m is a set of consistent ethic values a n d measures
used for t h e purpose of ethical or ideological integrity.
 A hierarchy based o n a ranking of a n individual’s values in
t erms of their intensity forms h i s / h e r value system.
 They are the basic beliefs and guiding principles that mould a
persons behavior all his life
 Every individual has a set of values through which he looks at
all things and also at the world.

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ETHICS VS.
VALUES

 Values are be l iefs t h a t affect an individual’s

judgemental ideas about what is good or bad.
 Ethics is the way the values are acted out.
 Ethical behaviour is acting i n ways c o n s i s t e n t with one’s
personal values and the commonly held values of t h e
organization and society.
 Ethics is a set of moral principles or values which is
concerned with the righteousness or wrongness of
h u m a n behavior a nd which guides your conduct in
relation to others.

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 Ethics

Virtues and Rights

Standards and Policies

Morals and Values

Culture, Religion, Tradition

ATTITUDES VS.
VALUES

• Both are learned or acquired from the same

sources, experience.
• Both affect behavior of people.
• Both are difficult to change.
Values Attitudes
It represent judgement of what is right. It represent predispositions to respond
They represent single belief that guides An attitude represents several beliefs
actions and judgement across objects and relating to a specific object or situation.
situations.
Values are derived from social and Attitudes are derived from personal
cultural mores. experiences.

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TYPES OF
VALUES

• Terminal Values
 The desirable end-states of existence; the goals an
individual would like to achieve during his/her life
time.
• Instrumental Values
 The way to achieving goals.
 The preferable modes of behavior or means of
achieving one’s terminal values.

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 Terminal Values Instrumental Values
1. World Peace 1. Honest
2. Happiness 2. Helpfulness
3. Equality 3. Self-Control
4. Beauty in nature 4. Obedience
5. Friendship 5. Open Mindedness
6. Freedom 6. Politeness
7. Pleasure 7. Affection & Love
8. Wisdom 8. Courage
9.Social Respect 9.Responsibility
10.Family Security 10.Intelligence
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OF VALUES

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DETERMINANTS

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TO
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DETERMINANTS
OF VALUES
 Family Factors
 Practices adapted by parents to shape the personality of their
child.
 Social Factors
 School play the most important role in developing the value
system of an individual.
 Cultural factors
 It includes everything t hat is learned & passed on from
generation to generation.
 Personal factors
 Personal attributes (characteristics quality)
“40% of one’s values is genetically determined.”

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IMPORTANCE
OF VALUES (IN OB)

• Values lay the foundation of understanding

- Attitudes (what ought & what ought not to be)
- Perceptions (Right & Wrong)
- Motives
which shape the behaviour of individuals.
• A system of shared values of the organizational members help
in developing the organizational culture.
• Organizational values which are ethical and in the interest of
the society enhance the image of the organization.

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4 ETHICS IN THE
WORKPLACE
Organizational Behavior
WHAT IS
WORK ETHICS?

╸Ethics can be defined as a set of rules formulated by a country or a

company or some institutions.

╸Ethics is guidelines or rules that are set for a society or an

organization rather than for an individual .

╸Work ethics is an invisible employee behavior, noticeable by its

absence.

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ESSENTIALS OF  Fairness
WORK ETHICS - Listen
- Make decisions
based on careful
and appropriate
consideration
 Caring
 Trustworthiness  Respect  Responsibility - Compassion and
- Courtesy concern for others
- Integrity - Don’t m a k e
- Politeness
excuses - Kindness and
- Honesty - Dignity
- Value the - Accept consideration
- Promise-keeping
differences they responsibility for - Mercy and
- Loyalty bring into our decisions forgiveness
workplace - Fulfill all - Empathy
- Tolerance (This
obligations
can be hard) - Gratitude and
- DO NOT over- Expressed
promise Thanks

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UNETHICAL
EXCUSES

╸ Attempt by the wrongdoer to justifying why they acted a

certain way.
 Everybody does it
 Its not part of my job description
 Nobody is going to notice
 I don’t get pa i d enough
 Unrealistic expectations of what the job entails

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ETHICAL
CHOICES

• What you find is that the more tough ethical choices are
between two goods
╶Truth versus Loyalty
╶Individual versus Community
╶Justice versus Mercy

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ENCOURAGING
GOOD ETHICS

 Fair consequences
 Fair treatment
 Recognition
 Communication (be clear and consistent)
 Constructive feedback
 Have plans of action

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ETHICAL
DO’s & DON’Ts

DO’s DON’Ts
 Staying productive  Poor customer services
 Be accountable for your  Lying
actions  Gossiping
 Take Initiative  Bribes
 Think Critically to be able  Ignoring problems
to solve problem
 Abusing confidentiality
 Blowing the whistle agreements

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ETHICAL
DO’s & DON’Ts

DO’s DON’Ts
 Be punctual  Unpunctual/poor
attendance
 Take pride in your work
 Ignoring procedures and
 An immediate attempt to policies
correct an issue  Make decisions for personal
 Set the Example interest
 Blackmail
 Lack of Communication

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FINAL
LEARNING

 Know yourself
 Know your values
 Self Control
 Be committed
 Be consistent
 Be faithful

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6 ETHICS
OF LIFE

 Before you pray - BELIEVE

 Before you speak - LISTEN
 Before you spend - EARN
 Before you write - THINK
 Before you quit – TRY
 Before you die - LIVE

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Thanks!

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