UNIVERSITY OF LJUBLJANA

FACULTY OF PUBLIC ADMINISTRATION

ORGANIZATIONAL BEHAVIOR

(collected and edited by prof. dr. tefan Ivanko) Ljubljana, September 2013

I

Foreword

The present work has been partially revised and updated textbook Organizational Behavior course,

which is taught at the Faculty of Administration of Ljubljana, and is intended primarily to foreign

students coming to study at the Faculty of Administration of the Erasmus and when they choose this

course.

Substance represented by this work, is treated in six main chapters, which each own more or less is a

complete whole of certain aspects of organizational behavior, it is possible to study each chapter

separately from the others. The chapters are interlinked and set in the order so that they are in the early

chapters the concepts of organizational behavior that are the basis for understanding the material in the

chapters below. Introductory interest are the first two chapters. The central chapters are chapters on

micro, meso and macro organizational behavior. The final chapter is a section on international

organizational behavior, as in the age of globalization the international aspects are becoming

increasingly important.

Gist of the individual chapters is as follows:

The first chapter difines the notion of organizational behavior, present some important definition of

organizational behavior, organizational behavior variables, nesesary skills, models of organizational

behavior, contribution disciplines to organizational behavior and levels of organizational behavior.

The second chapter present thhe concept of formal and informal organization. Main parts of this

chapter are: difining management phylosophy, the formal organization, formal organizational

relationships, formal organizational structure, interelationship between formal and informal

organization., the informal organizational advantages, the informal organizational disadvantages

and the relationship of management to informal organization.

The third chapter is an outline of the micro- organizational behavior. It includes the foundation of

micro- organizational behavior, individual diversity, decision making and creatitity, work motivation

and performance and contributing discipines to micro- organizational behavior. Subchapters of this

chapter are. personal selection, personality and individual defferences in organizational behavior,

motivation and performance, stress, theory of learning and workplace attitude and performace

assesment.

The fourth chapter introduces some more important fields of meso organizational behavior, such as

the foundation of meso organizational behavior, groups within organization, teams within

organization, group dynamics and team effectiveness, communication, decision making and

negotiation, leadership of group and organizations, intelligence of leader and menegers, emotional

intelligence.

The fifth chapter is a comprehensive outline of macro organizational behavior. The subchapter withis

this chapter are: the definition of macro organizational behavioe, power, politics, conflict,

organizational structure, organizational design, change and organization, organizational development,

organizational culture, organizational climate, theory of symbolism and theory of power, theory of

competition.

II

The sixth chapter is a comprehensive outline of international organizational behavior. It deals with

definition of international organizational behavior and cluster systems or organization, Hofstedes

model and the critique of his model.

I am aware that this study material concerning organizational behavior is not completed. It means a

first attempt written in English. I wish and I expect that further educational process will warn me on

deficiencies of that study material. All suggestions for its improvement will be appreciate very muh.

Ljubljana, august 2013

Prof. dr. tefan Ivanko

III

1 DEFINING ORGANIZATIONAL BEHAVIOR ........................................................................... 1 1.1 SOME ORGANIZATIONAL BEHAVIOR DEFINITIONS .................................................. 1 1.2 ORGANIZATIONAL BEHAVIOE VARIABLES ................................................................ 3 1.3 FOUNDATIONS OF INDIVIDUAL BEHAVIOR ................................................................ 4 1.4 NESESARY SKILLS .............................................................................................................. 4 1.5 VALUES, ATTITUDES AND JOB SATISFACTION .......................................................... 5 1.6 MODELS OF ORGANIZATIONAL BEHAVIOUR ............................................................. 6 1.7 CONTRIBUTING DISCIPLINES TO ORGANIZATIONAL BEHAVIOR.......................... 7 1.8 LEVELS OF ORGANIZATIONAL BEHAVIOR .................................................................. 8

2 FORMAL AND INFORMAL ORGANIZATION ....................................................................... 13 2.1 CONCEPT OF FORMAL AND INFORMAL ORGANIZATION ...................................... 13 2.2 DEFINING MANAGEMENT PHILOSOPHY .................................................................... 13 2.3 DEFINING ORGANIZATIONAL BEHAVIOR .................................................................. 14 2.4 THE FORMAL ORGANIZATION ...................................................................................... 14 2.4 FORMAL ORGANIZATIONAL RELATIONSHIPS ......................................................... 15 2.5 FORMAL ORGANIZATIONAL STRUCTURES ............................................................... 16 2.6 INTERRELATIONSHIP BETWEEN FORMAL AND INFORMAL ORGANIZATION .. 19 2.7 THE INFORMAL ORGANIZATION: ADVANTAGES ..................................................... 19 2.8 THE INFORMAL ORGANIZATION: DISADVANTAGES .............................................. 21 2.9 THE RELATIONSHIP OF MANAGEMENT TO INFORMAL ORGANIZATION .......... 22 2.10 SUMMARY .......................................................................................................................... 22

3 MICRO ORGANIZATIONAL BEHAVIOR ............................................................................... 24 3.1 THE FOUNDATIONS OF MICRO ORGANIZATIONAL BEHVIOR .............................. 24

3.1.1 INDIVIDUALS DIVERSITY ................................................................................... 25 3.1.2 DECISION MAKING AND CREATIVITY .............................................................. 26 3.1.3 WORK MOTIVATION AND PERFORMANCE ...................................................... 27 3.1.4 CONTRIBUTING DISCIPLINES TO MICRO ORGANIZATIONAL BEHAVIOR 27

3.2 PERSONNEL SELECTION ................................................................................................. 28 3.2.1 INTRODUCTION ....................................................................................................... 28 3.2.2 WHAT IS PERSONNEL SELECTION? .................................................................... 28 3.2.3 PERSONNEL SELECTION CRITERIA .................................................................... 29 3.2.4 HOW TO FIND AN EMPLOYEE? ............................................................................ 29 3.2.5 METHODS OF SELECTION ..................................................................................... 31 3.2.6 CURRICULUM VITAE ............................................................................................. 32 3.2.7 REFERENCES ............................................................................................................ 32 3.2.8 INTERVIEWS ............................................................................................................ 32 3.2.9 EXERCISE: SHOULD TENNECO USE THE WONDERLIC TEST? ..................... 36 3.2.10 SUMMARY ................................................................................................................ 36

3.3 PERSONALITY AND INDIVIDUAL DIFFERENCES INRGANIZATIONAL BEHAVIOR ............................................................................................................................. 38

3.3.1 DEFINNING PERSONALITY ................................................................................... 38 3.3.2 TYPE OF THE PEOPLE AND ORGANIZATIONS ................................................. 38 3.3.3 FREUD AND PSYCOANALYSIS ............................................................................ 39 3.3.4 C.G. JUNG'S THEORY OF PERSONALITY ................................................................... 40 3.3.5 CONCLUSION .................................................................................................................. 58

3.4 MOTIVATION AND PERFORMANCE ............................................................................. 60 3.4.1 INTRODUCTION ....................................................................................................... 60 3.4.2 DEFINING MOTIVATION ............................................................................................... 60 3.4.3 THE MOTIVATION EQUATION ............................................................................. 62 3.4.4 MODEL OF THE MOTIVATION PROCESS ........................................................... 63 3.4.5 THEORIES ABOUT MOTIVATION ........................................................................ 64 3.4.6 ADDITONAL PERSPECTIVES ON MOTIVATION ............................................... 72 3.4.7