This video explores organizational behavior (OB), its impact on business success, and its connection to management functions (planning, organizing, leading, controlling). It highlights the importance of understanding OB for effective management, emphasizing the role of human resource management (HRM) in attracting, developing, and motivating employees. The video also discusses various management theories (scientific management, human relations movement, quality management), strategic approaches (cost leadership, differentiation, specialization), and the situational perspective in OB. Finally, it emphasizes the importance of systematic research and the scientific method in studying OB. these tivities. perception, for instance, plays a major role in environmental scanning and creativity and innovation influence how managers set goals, strategies and tactics for their organization. The second managerial function is organizing the process of designing jobs, grouping jobs into manageable units, and establishing patterns of authority among jobs and various job groups. This process produces the basic structure or framework of the organization, leading. the third major management function is the process of motivating members of the organization to work towards the organization's goals. Major components of leading include motivating employees, managing group dynamics, the actual process of leadership itself, and so on. There are all closely related to the major areas of organizational behavior. The fourth managerial function controlling is the process of monitoring and correcting the actions of the organization and its people to keep them headed towards their goals, performance evaluation and reward systems. For example, both apply to control. control is of vital importance to a business, but it can be especially critical to smaller organizations. Managers apply these four basic functions across resources to advance the organization towards its goals. In general, most successful managers have a strong combination of technical, interpersonal conceptual and diagnostic skills. Technical skills are necessary to accomplish specific tasks within an organization. Managers use interpersonal skills to communicate with, understand and motivate individuals in groups, Managers spend a large portion of their time interacting with others. So it's clearly important that they get along well with other people. Conceptual skills are the managers ability to think in the abstract, a manager with strong conceptual skills is able to see the big picture. That is, she or he can see the opportunity where others see roadblocks and problems. Most successful managers also bring diagnostic skills to the organization agnostic skills, allow managers to better understand cause-and-effect relationships, and to recognize the optimal solutions to problems. Management skills impact organizational behavior and success in profound ways. Human resource management, known as HRM, is the set of organizational activities directed at attracting, developing and maintaining an effective workforce. More precisely, HR Managers select new employees, develop rewards and incentives to motivate and retain those employees and create programs for training in developing staff. But how do they know which applicants to hire? And how do they know which rewards will be more motivating than others? The answers to these and related questions are generally drawn from the field of organizational behavior. Competitive advantage exists. Anytime an organization has an edge over rivals in attracting customers in defending itself against competition. How does an organization gain competitive advantage sources of competitive advantage, including having a best maid or cheapest product, providing the best possible customer service, being more convenient to buy from having shorter product development times, and having a well--known brand name. According to Michael Porter. to have a competitive advantage, a company must ultimately be able to give customers superior value for their money. Either a better product, that's worth a premium price, or a good product at a lower price can be a source of competitive advantage. A company may create value based on price, technological leadership, customer service, or some combination of these and other factors. Business strategy involves the issue of how to compete, but it also encompasses the strategies of different functional areas of the firm, how changing industry conditions, such as deregulation, product, market maturity, and changing consumer demographics will be addressed, and how the firm as a whole will address the range of strategic issues and choices that it faces. Business strategies are partially planned and partially reactive to changing circumstances. A large number of possible strategies exist for any organization, and an organization may pursue different strategies in different business units. Companies may also pursue more than one strategy at a particular time. These three primary business strategies are cost leadership, differentiation, and specialization. let's take a look. Firms pursuing a cost leadership strategy, strive to be the lowest cost producer in an industry for a particular level of product quality. These businesses are typically good at designing products that can be more efficiently manufactured, and engineering efficient manufacturing processes to keep production costs and consumer prices low. A differentiation strategy calls for the development of a product or service with unique characteristics valued by customers. The value added by the products uniqueness may enable the business to charge a premium price for it. The dimensions along which a firm can differentiate include image like Coca-Cola product durability, like Wagner, clothing quality like Lexus, safety like Volvo and usability like Apple computer businesses pursuing a specialization strategy, focus on a narrow market segment, or niche, a single product or a particular end use or buyers with special needs, and pursue either a differentiation or cost leadership strategy within that market segment. Successful businesses following a specialist strategy, know their market segments very well, they will often enjoy a high degree of customer loyalty. This strategy can be successful if it results in either lower costs and competitors serving the same niche, or the ability to offer customers something. Other competitors do not like manufacturing non-standard parts. There are a number of significant linkages that connect business strategy and organizational behavior. For instance, a firm that relies on cost leadership strategy will usually need to keep all of its expenses as low as possible. Therefore, this strategy might indicate relying on The four basic functions of management are: Planning: This is the first managerial function, involving the setting of goals and objectives. Controlling: This function involves monitoring and correcting the actions of the organization and its people. Organizing and Leading : These functions are closely related to major areas of organizational behavior. Successful managers utilize these functions by: Conceptualizing their activities as reflecting one or more of these functions. Applying these functions to various resources, including human, financial, physical, and information resources. Using control mechanisms, like performance evaluation and reward systems, to keep the organization on track. Applying these four functions are vital for business. of instructions based on time-in motion studies. The four principles of Taylor's scientific management are the following. Replace rule--of--thumb work methods, with methods based on scientifically studying the tasks using time and motion studies, scientifically select train and develop all workers, rather than leaving them to passively train themselves. Managers provide detailed instructions in supervision to workers to ensure that they are following the scientifically developed methods. They divide work nearly equally between workers and managers. Managers should apply scientific management principles to planning. the work and workers should be actually able to perform the tasks, although scientific management improved. productivity had also increased monotony at work. Scientific management left no room for individual preferences or initiative and was not always accepted by workers. The scientific method spawned the discovery of the Hawthorne effect in the 1920s and 1930s. The Hawthorne effect occurs when people improve some aspect of their behavior or performance, simply because they know they're being assessed. The Hawthorne effect was first identified when a series of experiments that came to be known as the Hawthorne studies were conducted on Western electric plant workers in Hawthorne, just outside of Chicago, to see the effects of a variety of factors, including individual versus group-pay, incentive pay breaks, and snacks on productivity. One of the working conditions tested at the Hawthorne plant was lighting. When they tested, brighter production increased. When they tested dimmer lights production also increased. Researchers observed that productivity almost always improved after a lighting change, any change, but eventually returned to normal levels. Workers appeared to try to work harder when the lights were dimmed, just because they knew they were being evaluated. George Alton Mayo, founder of the human relations movement initiated by the Hawthorne studies, explained this finding by saying that workers tried harder because of the sympathy and interest of the observers. Mayo stated that the reason workers are more strongly motivated by informal things is that individuals have a deep psychological need to believe that their organization cares about them. Essentially, workers were more motivated when they believe their organization is open-concerned and willing to listen. The Hawthorne studies prompted further investigation into the effects of social relations, motivation, communication, and employee satisfaction on factory productivity, rather than viewing workers as interchangeable parts in mechanical organizations. As the scientific management movement had done the human relations movement, viewed organizations as cooperative systems and treated workers orientations, values and feelings as important parts of organizational dynamics and performance. The human relations movement stressed the importance of human dimensions of work, including group relations that can be superseded by organizational norms, And even an individual self--interest. Harvard social work professor and management consultant, Mary Parker Follett was known as the profit of management, because her ideas were ahead of her time. Fallot discovered a variety of phenomenon, including creativity, exercises such as brainstorming and the groupthink effective meetings. W. Edwards Deming is known as the guru of quality management. Deming, taught Japanese industrialists statistical process control and quality concepts. His classic 1986 book describes how to do high-quality, productive and satisfying work. Deming believed that removing fear from the workplace gives employees pride in their workmanship and increases productivity. Deming also felt that when things go wrong, there's a 94% chance that the system elements under management control, including machinery and rules, rather than the worker, is the cause. He believed that making changes in response to normal variations was unwise, and the proper understanding of variation includes the mathematical certainty that variation will normally occur within a certain range. The total quality management movement initiated by Deming again highlights the importance of people, teamwork and communication in organizations success. This brief history helps to set the stage for an understanding of organizational behavior. A system is an interrelated set of elements that function as a whole. This figure shows a general framework for viewing organizations as systems according to this perspective, an organization system receives four kinds of inputs from its environment, material, human, financial and informational. The organization's managers then combine and transform those inputs and return them to the environment in the form of products, or services, employee behaviors, profits and losses, and additional information as outputs, These products are sold to the consuming public profits from operations are fed back into the environment through taxes, investments, and dividends, losses. when they occur hit the environment by reducing stockholders incomes, then the system receives feedback from the environment regarding those outputs. Finally, information about the company and its operations is also released into the environment. the environment, in turn, responds to those outputs, and influences future inputs. The systems perspective is valuable to managers for a variety of reasons. The systems perspective helps managers conceptualize the flow and interaction of various elements of the organization itself, as they work together to transform inputs into outputs. The situational perspective suggests that in most organizations, situations and outcomes are influenced by other variables. The field of organizational behavior has gradually shifted from a universal approach in the 1950s and early 1960s, to a situational perspective. In the earlier days of management studies, managers searched for universal answers to organizational questions. They've sought prescriptions the one best way that can be used in any organization under any conditions, Eventually, however, researchers realize that the complexities of human behavior and organizational settings make universal conclusions virtually impossible. They discovered that, in organizations, most situations and outcomes are contingent, That is, the precise relationship between any two variables is likely to be situational, as an example, dependent on other variables. The situational perspective has been widely documented in the areas of motivation, job design, leadership and organizational design. and it's becoming increasingly important throughout the entire field of organizational behavior first presented in the terms of interactional psychology. This view assumes that individual behavior results from a continuous and multi--directional interaction between characteristics of the person and characteristics of the situation. More specifically interaction ILysm attempts to explain how people select, interpret, and change various situations. Note that the individual and the situation are presumed to interact continuously. This interaction is what determines the individuals behavior. The inter-actual view implies that simple cause and effects descriptions of organizational phenomena are not enough. Other studies may propose that attitudes influence how people perceive their jobs in the first place. Both positions probably are incomplete. employee attitudes may influence job perceptions, but these perceptions may in turn influence future attitudes. The inter-actual view appears to offer many promising ideas for future development. They can do this by enhancing behaviors and attitudes, promoting citizenship. minimizing dysfunctional behaviors, and driving strategic execution. First, several individual behaviors result from a person's participation in an organization. One important behavior is productivity. A person's productivity is a relatively narrow indicator of his or her efficiency, and is measured in terms of products or services created per unit of input performance. Another important individual-level outcome variable is a somewhat broader concept, and is made up of all work--related behaviors, even if all the people in a group or team have the same or similar attitudes towards their jobs, the attitudes themselves are individual level phenomenon. Individuals, not groups have attitudes. Managers need to assess both common and unique outcomes when considering individual and group levels in organizational behavior. levels of job satisfaction, or dissatisfaction, organizational commitment, and employee engagement play an important role in organizational behavior. Extensive research conducted on job satisfaction has indicated that the personal factors such as an individual's needs, and aspirations determine this attitude, along with group and organizational factors, such as relationships with coworkers and supervisors, as well as working conditions, work policies, and compensation, A