ORGANIZATIONAL BEHAVIOUR

Definition need and importance of organizational behaviour nature and scope frame work
organizational behaviour models.

1. What is Organizational Behaviour?

OB is concerned with the study of human behaviour at work. In other Words. OB is the study and application of
knowledge about how people as individuals and as groups behave or act in organizations.
According to Stephen Robbins OB is a filed of study that investigates the impact that individuals, groups and
structure have on behaviour within organizations for the purpose of applying such knowledge towards improving an
organizations effectiveness.

2. Definitions of Organizational Behaviour?

Different behaviour scientists have defined OB differently. A few important definition on OB are
According to Luthans, OB is directly concerned with the understanding ,prediction and control of human
behaviour in organizations.
Davis and Newstorm have defined OB as the study and application of knowledge , how people act or behave
within organization. It is a human tool for human benefit. It applied broadly to
the behaviour of people in all types of organization such as business, govt and service organization.
OB has been defined by Keith Davis as An academic discipline concerned with understanding human
behaviour , describing human behaviour.
Aldag and Brief have defined OB as OB is a branch of the social sciences that seeks to build theories that can be
applied to predicting , understanding and controlling behaviour in work organization.
Callahan ..et al have defined OB is a subset of management activities concerned with understanding and
predicting and influencing individual behaviour in organization settings.
To sum up, OB is concerned with the study of how and what people act in organizations and also how their acts
affect the performance of the organization. It also applies the knowledge gained about individuals, groups and effect of
structure on human behaviour in order to make organizations work more effectively.

3. Key elements or fundamental concepts of Organizational Behaviour

Like all other disciplines / subjects, OB is also based on certain key elements also called fundamental concepts
or assumptions. There are four key elements in the study of OB. These are

People : Organizations are run by people. People consists of individual and groups though people have much in
common, they differ from each other. One can find glaring differences in peoplestrait, intelligence, personality or
any such trait. It is , in fact individual differences , that the managercannot adopt one formula or standard across
the board for dealing with employees. Instead, managers has to treat employees with individual differences
differently. It is because of individual differences, the subject matter of Ob begins with individual. Behaviour is
directed towards some goals. There is always a cause behind every human behaviour or act.
Eg. When a worker is absent from work , there is a cause behind . The managers must know the cause to solve
the problem. The manager therefore, needs to treat them with human dignity, not just like a economic tool.

Structure : Organizations are social systems There are two types of social systems that exist side by side in an
organization. One is the formal and other is the informal social system. The formal Relationship of people in
organizations is called structure. Different jobs are required to accomplish the organizational goals and bjectives.
Eg. Manager, employer, accountants All these people performing different jobs at different levels have to be
related in some structural way. So that their work can be effectively coordinated.
That people need organizations and organizations also need people4, both comes under the purview of OB. It
means that OB is based on mutuality of interest. It is mutual interest that units people and organization to go side by
side for accomplishing individual and organizational goals.

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 Technology : Technology provides the resources with which people work and also affects the tasks that they
perform. The great benefit of technology is that it allows people to do more and better work .But it also restricts
people from doing things in various ways. In fact , it has both advantages and disadvantages.
Environment : All organization operate within a given internal and external environment. An organization is a
part of a large system that contains other factors such government and other organizations. All of them mutually
influence one another in a complex way. Thus organizations are influence by this external environment. Thus, it
affects people by influencing their attitudes, working conditions etc.

4. Need and importance of organizational Behaviour

As we also know that OB is the study of people at work in organizations. We study organization because we spend
our lives interacting with them. Regardless of the part we play as a student , employee, manager or customer, we play our
roles/parts on an organizational stage. By acting our parts, we influence organizations and organizations influence us.
The same underlines the need for study of OB.

5. Benefits of organizational Behaviour

1. The study of OB helps us understand ourselves and others in a better way. This helps greatly in improving
interpersonal relations in the organizations. Friendly and cordial relations between employees and management.

2. The knowledge of OB helps the managers, to know individual employees better and motivate employees to work
for better results. It also helps managers to apply appropriate motivational techniques in accordance to the
nature of individual employees.

3. One of the basic characteristics of OB is that it is human in nature. It means that OB tackles human problems
humanly. OB will be very useful in this context. It helps understand the cause for the problem, predicts its cause
of action and control its consequences. Thus treating employees as human beings enables the managers to
maintain cordial industrial relations which, in turn, creates peace and harmony in the organizations.

4. The subject of Ob is useful in the field of marketing. In the dynamic mechanisms of the flow of goods and services
from producer to consumer, the awareness of the nature of individual and social processes has an immediate or
long range contribution to the success or failure of the enterprise.

5. The most popular reasons for the study of OB is to learn how to predict human behaviour and then apply it in
some useful way to make the organization more effective. Thus, knowledge of OB becomes a pre-requirement for
a person like the student of MBA who is going to assume a managerial job and succeed as a manager.

6. Finally, all organizations are run by man. It is man working in the organization makes all the difference. Then it
implies that effective utilization of people working in the organization guarantees success of the organization.
This is where OB comes into the picture. OB helps managers how to manage efficiently human resources in the
organization. It enables managers to inspire and motivate employees towards higher productivity and better
results.

6. Nature of organizational Behaviour

a) A separate field of study and not a discipline only

A discipline is an accepted science that is based on a theoretical foundation. But , OB has a multi-inter
disciplinary orientation, and is thus not based on a specific theoretical back ground. Therefore, it is better reasonable to
call OB a separate field of study rather than a discipline only.

b)An interdisciplinary approach

OB is essentially an interdisciplinary approach to study human behaviour at work. It was to integrate the relevant
knowledge drawn from related disciplines like psychology, sociology and anthropology to make them applicable for study
and analysis of OB.

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c) An Applied Science
The very nature of OB is applied. What OB basically does is the application of various research to solve the
organization problems related to human behaviour. Unlike the pure science , which concentrates on fundamental
researches and on applied researches. As OB involves both fundamental and applied researches and its applications in
organizational analysis, hence Ob can be called both science as well as an art.

d) A Normative science
OB is a normative science. A normative science, unlike the positive science which suggests only cause-effect
relationships, prescribes how the various findings of the researches can be applied to get organizational results which are
acceptable to the society. Thus what is acceptable by the society or individual engaged in an organization is a matter of
values to the people concerned. . This aspect can not be explained by positive science , which is possible in OB. Hence it is
called as a normative science.

e) A Humanistic and optimistic Approach

By nature OB is humanistic and optimistic and it focuses attention on the human aspect of the employers such as
their welfares, promotion further it is optimistic because it believed that human beings are positively oriented towards
work.
OB based on the belief that people have an innate desire to be independent , creative and productive and capable
of contributing positively to the objectives of the organization if they are given proper conditions & environment . As
stated earlier environment affects performance of workers working in an organization..

f) A Total system approach

The system approach is one that integrates all the variables, affecting organizational functioning. The systems
approach has been developed by the behavioural scientists to analayse human behaviour in view to his/her socio-
psychological frame work. (psychological framework, interpersonal orientation, group influence and social and cultural
factors.) Thus mans nature is quite complex and OB by applying systems approach tries to find solution to this
complexity.

7. Scope of organizational Behaviour

We all know that OB is the study of human behaviour at work in organizations. Accordingly, the scope of OB
includes the study of individuals, groups and organization/structure.
a) The study of Individual (personality, attitudes, perception, learning, opinion , motivation , job satisfaction ,
values etc)
b) b) The Groups of individuals and (group dynamics, inter- group conflict, leadership, communication,
transactional analysis, power and politics.
c) Organization / Structure ( organizational structure, org. culture, org .change , org. development)

8. Organizational Behaviour and other fileds of studies

The emerging field of study of human behaviour is organization is referred by different names -organization
behaviour, behavioural science, human relations or organization theory.
Though each of them tries to study human behaviour in organization and they are used interchangeably in many
cases, but they differ in their approach.

a) Behaviour Science and OB

Behavioural science study the human behaviour in general where as OB tells us what should be the type of
behaviour in an organization. Generalization based on the empirical evidence.
BS not restricted to an organization where as OB restricted to an organization. BS study human behaviour in a scientific
way where as OB uses scientific and normative way to study human behaviour.

b) Human Relations and OB

Human Relations applies to the interaction and cooperation of people in groups where as OB applies co-
ordination , motivation direction of people in a work situation to make things work together effectively. HR can happen
to any aspect of human activity in organizations or non-organizations where as OB tries to understand the complex
causes that affect human behaviour in a place of work . HR can be applied in a wider context either organizational
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setting or non organizational context where as OB can be applied only in organizational settings. HR not restricted to
any organization where as OB restricted to an organization.

c) Organization Theory and OB

Organization Theory deals with macro aspects of an organization where as OB deals with micro aspects of an
organization. OT prescribes and describes how affair should be conducted in any organization where as OB applies the
theory for influencing , directing and motivating the employees of an organization.

9.Approaches to the study of organizational Behaviour

Four approaches of the study of organization have been discussed in the literature on the subject . The four
approaches are
a) Human Resources Approach
b) Contingency Approach
c) Productivity Approach
d) System approach
It may be stated that all these approaches are interwoven through out the subject study.
a) Human Resources Approach
The approach recognizes the fact that people are the central resource in any organization and that they should be
developed towards higher levels of competency, creativity and fulfillment. People thus developed will contribute to the
success of the organization.
The human resources approach is also called the supportive approach in the sense that the managers role
changes from control of employees to active support of their growth and performance.
The supportive approach contrasts with the traditional management approach. In the traditional approach,
managers decide what employees should do and closely monitor their performance to ensure task accomplishment. In
the human resource approach, role of managers changes, as was stated above from structure and controlling to
supporting.
b) Contingency Approach
The contingency approach ( some times called the situational approach ) is based on the premise that methods or
behaviour which work effectively in one situation fail in another. OD programmes. For example , may work brilliantly in
one situation but fails miserably in another situation. Results differ because situations differ, the managers task,
therefore, is to identify which method will, in a particular situation under particular circumstances nd at a particular
time, best contributed to the attainment of organizations goals.
The strength of the contingency approach lies in the fact it encourages analysis of each situation prior to action
while at the same time discourages habitual practice of universal assumptions about methods and people. The
contingency approach is also more interdisciplinary , more system-oriented and more research oriented than in any
other approach.
c) Productivity Approach
Productivity which is the ratio of output to input, is a measure of an organizations effectiveness. It also reveals
managers efficiency in optimizing resources utilization. The higher the numerical value of this ratio, the greater the
efficiency.
Productivity is generally measured in terms of economic inputs and outputs, but human and social inputs and
outputs also are important.
For eg. If better organizational behaviour can improve job satisfaction , a human output or benefit occurs.
Organizational behaviour decisions typically involve human, social and /or economic issues and so, productivity,
usually a significant part of these decisions is recognized and discussed extensively in the literature on OB.
d) System approach
System approach to OB views the organization as a united, purposeful system composed of interrelated parts.
This approach gives managers a way of looking at the organization as a whole, whole person, whole group and the whole
social system. In so doing, systems approach tells us that the activity of any segment of an organization affects , in
varying degrees, the activity of every other segment.
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 A system view should be the concern of every person in an organization. The clerk at a service counter, the
machinist, the manager all work with the people and there by influence the behaviour, equality of life in an organization
and its outputs. Managers, however tend to have larger responsibility, because they are the ones who make majority of
the decisions affecting human issues and most of their daily activities are people oriented.
The role of managers , then is to use organizational behaviour to help achieve individual , organizational and
social goals. Managers help to build an organizational culture in which , talents are utilized and further developed, people
are motivated, teams become productive, organizations achieve their goals and society reaps the record.

10. Contributing disciplines to organizational Behaviour

OB is an applied behavioural science. It has drawn heavily from a number of other applied and interdisciplinary
behavioural disciplines such psychology, sociology and anthropology.
Let us see one by one

a) Psychology Science of behaviour includes both animals and human behaviour. The discipline that has the
greatest influence on the filed of OB is psychology. It is a science that focuses directly on understanding and
predicting individual behaviour. It has greatly contributed to the inter personal dynamics of human behaviour.
Topics such as personality, perception, attitude, opinion, learning , motivation, leadership , job satisfaction ,
stress etc. describes intra-personal aspects of OB.
Psychologist plays an important role now-a-days . some are academicians with specialists in
experimental, social or clinical psychology and some are found in business, industries and governmental
organizations acting as counselors.
Eg. Educational psychologists act as counselors
Industrial Psychologist- involved in screening and training employees.
Their contribution includes training , leadership effectiveness, performance appraisal, job design and work stress.

b) Sociology - is the study of people in relation to their fellow human beings where as psychology focus on the
individuals. Sociologists study groups of individuals. The field of sociology has made valuable contributions to
our understanding of group dynamics and behaviour, team communication, power, organization culture and
change, formation of groups , formal and informal organizations and the like.

c) Socio-psychology borrows concepts from both psychology and sociology. It focuses on the influence of
people on one another. One of the areas receiving considerable attention from social psychology is change how
to reduce its resistance and implement it successfully. Additionally, social psychology is useful in the areas of
measuring, understanding and changing attitudes, communication patterns, the ways in which group activities
can satisfy individual needs, and group decision-making process.

d) d)Anthropology is the study of societies to learn about human being and their activities. Anthropology helps
us to understand differences in fundamental values, attitudes and behaviour between people in different regions
and organizations. In particular, anthropologists study culture.
e) Culture has significant influence on human behaviour. It dictates what people learn and how they behave.

OB and other disciplines

e) Political Science is mainly concerned with the structuring of conflicts (organizational conflicts) and usage of
power by people for self interest in organizations.

f) Economics involves the use and distribution of worlds resources in the most optimum manner for the pursuit of
the organizations goals and objectives. Utilization of both physical and human resources are its main study.

g) Ethics This refers to the establishment of absolute standards with regards to interpersonal relationships and
interaction especially in terms of honesty, integrity, values esteem and respect.

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h) Mathematics and statistics This involves the necessity of using absolutes and facts based on with reference to
particular situation so as to allow logical and demonstrable conclusions from bodies of knowledge and research.

i) History has also greatly contributed to our understanding of OB by describing lives of great leaders and the
successes and failures of organizations they managed.

11.Developing an Organizational model

A model is an abstraction of reality, a simplified representation of some real world phenomenon.

Robbins OB Model : is the most popular model in the study of OB. In this model there are three levels of analysis and
that each level is constructed upon the earlier level. These three levels re individual level , group level and organization
systems level. The foundation is laid in the individual level . Group concepts grow out of foundation laid in the individual
level and OB is the out come of the structural constraints on the individual and group level.

Three Level in OB Model

Organization systems
level

Group level

Individual level

Dependent and independent variables in OB.

As per this model there are certain primary dependent and independent variables in OB.

Dependent variables are those key factors which one wants to explain or predict and get affected by some other
factors.
Researchers have broadly emphasized certain primary dependant variable in OB namely productivity,
absenteeism, turnover , job satisfaction and organization citizenship.

Productivity An organization is said to be productive if its output performance is effective as well as efficient.
Absenteeism It refers to failure in reporting at the place of work. Absenteeism will always have an adverse
effect on a firms productivity. Absenteeism disrupts workflow , affecting the day-to-day operations and at times
even having a negative impact and delay in implementing important decisions. So it will be apt to state that
organizations will benefit only if employees absenteeism is on the lower side.
Turnover refers to the voluntary and involuntary permanent withdrawal of employees from an organization.
Staff leaving the organization results in difficult in replacement of employees. It also
Reflection of the employees perception of job satisfaction . Turnover adversely affect the organizations
effectiveness.
Job satisfaction refers to individuals attitude toward his/her job. An individual having a high level of job
satisfaction will have a positive attitude towards his job . Dissatisfaction results in negative attitude towards the
job. The concept of job loyalty related to job satisfaction.
Organization citizenship It refers to discretionary behaviour and it is not part of an formal job requirement.
It involves employees willingness to help other team members, working with confidence in the work group ,
avoiding unnecessary conflicts, caring for the organization property as ones own. Abiding the rules and regulations
and organization culture and so on.
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Independent variables
OB can be best understanding if it is viewed as intelinking of the three levels of employee behaviour individual
, group and organization systems level variables.

Individual level each employee who joins an organization has certain characteristics which will influence
his/her behaviour at work. Character , age, gender , martial status , personality ,value, attitude, ability,
perception, learning, motivation ,decision-making etc unique to each individual and definitely affects employees
behaviour at work and management can do little to alter it.

Group level - Behviour of people in group is different from when they behaving alone. This fact is
acknowledged in the OB Model. This calls for an understanding of the study of group behaviour
communication patterns of behaviour , leadership style, power and politics , levels of conflicts in group and how
to work out effective work teams.

Organization systems level OB reaches its highest level of sophistication when we add formal structure to
our previous knowledge of individual and group behaviour . Independent variables have an impact on the
dependent variables.
Models of OB
Models are framework or possible explanation why do people behave as they do at work. There are various
models are as many are organization. All the models of OB are broadly classified in four types Autocratic , Custodian,
Supportive and Collegial.

a) Autocratic Model In this model managerial orientation is dictatorial. The managers exercise their command over
employees. The managers give orders and the employees have to obey the orders. In this model employees behave
obediently, performance will be minimum and wages paid will be minimum.
The autocratic model do produces results but at high human cost. The changes in social values and needs of the
employees suggested managers to adopt alternative and better ways to manage people at work. This gave genesis to the
second type of models of OB.

b) The Custodian Model While studying the employees, the managers realized and recognized that although the
employees managed under autocratic style do not talk back to their boss but they certainly think back about the system.
This results in frustration and aggressive behaviouron their co-workers, families and neighbours . This made managers
think how to develop better employee satisfaction and security. It was realized that this can be done by dispelling
employees insecurities, frustration and aggression.
This called for introduction of welfare programmes to satisfy security needs of employees. So welfare
programmes introduced in the organization. Welfare programmmes lead to employee dependence on the organization.

Eg. IGNOU welfare programmes like house base facilities, subsidized transport facilities , day time child care center
in the campus etc.
Although the custodian model brings security and satisfaction , it also suffers from certain drawbacks. Employees
are not motivated to increase their capacities of which they are capable. Though the employees are satisfied, still they do
not feel motivated or fulfilled in their work they do. This resulted in another type of model of OB.

c) The Supportive Model The supportive model is formed on leadership, not on money or authority. In fact it is the
managerial leadership style that provides an atmosphere to help employees grow and accomplish their tasks
successfully. Under supportive approaches the managements orientation is to support the employees job performance
for meeting both organizational and individual goals.
However, this model is found more useful and effective in developed nations and less effective in developing
countries.

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d) The Collegial Model This model is an extension of the supportive model. The word college means a group of
persons having the common purpose, this model relate to a team work or concept. Under this model, employees feel
needed and useful. They consider managers as contributors to organizations success rather than as boss.
Its greatest benefit is that the employee becomes self discipline and more responsible. This model produced
improved results in situations when it is appropriated.

12. Challenges and Opportunities for OB

The coming millennium poses new challenges and offer immense opportunities for managers. The relevance of
understanding OB has tremendous significance in todays work, especially with constant changes and uncertainty
prevalent in the environment in which the organizations exit. This makes it all the more necessary for an organization to
understand the changing employees profiles and behaviour pattern.

Some changes affecting individuals and firms could be

The average sage of any working Indian employee is growing younger and younger i.e between 23-25 years of
age.
Frequent job hopping by employees. Employees do not want to stick to the some organization throughout their
lifetime.
The average employees always seek courses and programmes which will lead to self development opportunities.
Organizations have realized the need for downsizing and are offering voluntary retirement scheme to employees
in order to become more proactive entities especially to match technological advances . Eg. HMT
In the post liberalization age, the advent of the MNCs have made Indian companies to wake up to adopt cutting
edge strategies to meet and beat their foreign counterparts.Mergers and acquisition are the order of the day. Eg.
Bank of Madura merged with ICICI bank.

The above instances indicates the many changes that are occurring in the business environment. So one of the
biggest challenges before organizations is how to attract, manage and nurture talented employees.

There are a lot of challenges and opportunities today for managers to use OB concepts. Let us review some of the
more critical issues confronting managers for which OB offers solutions or at least some meaningful insights towards
solutions.

i) Responding to Globalization
Growing internationalization of business has its impact on people management. The management is required to
cope with problems of unfamiliar laws, language, practices, competitors, attitudes, management styles, work ethics and
more. Personnel functions such as hiring , training, compensating , maintaining and the like must acquire global
perspectives.
Eg. Most of the American companies receives its revenue from outside America. An American cell phone company
receives 75% of its revenue from outside United States.
Globalization affects a managers skills in atleast two ways.
a) If you are manager, you are increasingly likely to find yourself in a foreign assignment you may be transferred to
your employers operating division or subsidiary in another country. There you will have to manage a work force
that is likely to be very different in needs, aspirations and attitudes, from those you were used to back home.

b) Even in your own country, you re going to find yourself working with bosses, peers and other employer who were
born and raised in different cultures. What motivates you may not motivate them or your style of communication
may be straight forward and open , but they may find this approach uncomfortable and threatening. To work
effectively with these people, you will need to understand their culture, how it has shaped them, and how to
adopt your management style to their differences.

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ii) Managing Workforce Diversity
One of the most important and broad-based challenges currently facing organizations is adapting to people who
are different while globalization focuses on differences between people from different countries, workforce diversity
addresses differences among people within given countries.
Workforce diversity means that organizations are becoming more heterogeneous in terms of gender, race and
ethnicity.
Workforce diversity has important implications for management practice. Managers have to shift their
philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that
ensure employee retention and great productivity while, at the same time not discriminating.
Diversity if positively managed , can increase creativity and innovation in organizations as well as improve
decision making by providing different perspectives of problems. When diversity is not managed properly, there is a
potential for higher turnover, (more-difficult ) strained communication and more interpersonal conflicts.

iii) Improving Quality and Productivity

More and more managers are confronting the challenges of very competitive business. They have to improve
their organizations productivity and the quality of the products and services they offer. Toward improving quality and
productivity, they are implementing programs such as quality management and process reengineering programs that
require extensive employee involvement.
TQM (Total Quality Management) is driven by the constant attainment of customer satisfaction of all through the
continuous improvement of all organizational processes.
Process RE-engineering means radically re-building and redesigning those processes by which we create value
for customers.

iv) Responding to the Labour Shortage

Economic ups and downs are difficult to predict . The world economy in the late 1990s for instance, was generally
quit robust and labour markets were tight . Most employees found it difficult to find skilled workers to fill vacancies.
In times of labour shortage, good wages and benefits arent going to be enough to get and keep skilled employees.
Managers will need sophisticated recruitment and retention strategies. And OB can help managers create these.

v) Improving Customers Service

Except for OB researchers interest in customer satisfaction through improvement in quality, the field of OB has
generally ignored the customer. Focusing on the customer was thought to be the concern of people who study and
practice marketing. But OB can contribute to improving an organizations performance by showing managers how
employee attitudes and behaviour are associated with customer satisfaction. May an organization has failed because its
employees failed to please the customers.
So management needs to create a customer responsive culture. And OB can provide considerable guidance in
helping managers create such cultures. Cultures in which employees are friendly and courteous, accessible,
knowledgeable , prompt in responding to customer needs, and willing to do whats necessary to please the customer.

vi) Changing in Employees expectations

With the changes in workforce, employees expectation and attitudes have also shifted. Todays average workers
demand better treatment, challenging jobs and career advancement. Unions are demanding not so much pay-rise, as in
intensive training programme to upgrade their skills to meet changing technologies. Job security, monetary benefits,
uniform, housing canteen , buses and other facilities alone may not , therefore motivate the employees. The manager of
people must redraw the profile of the worker and discover new methods of hiring, training ,remunerating and motivating
employees.

vii) Improving People Skills

The managers should realize how important people skills are to managerial effectiveness. OB help both managers
and potential managers develop those people skills. The managers should also gain insights into specific people skills so
that he can use on the job. The managers will learn ways to design motivating jobs, techniques for improving his listening
skills and how to create more effective teams.

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viii) Empowering people
In the 1980s managers were encouraged to get their employees to participate in work related decisions. Now,
managers are going considerably further by allowing employees full control of their work. Managers are empowering
employees. They are putting employees in-charge of what they do. And in so doing, managers are having to earn how to
give up control, and employees are having to learn how to take responsibility for their work and make appropriate
decisions.
ix) Coping with Temporariness
In the past, employees were assigned to specific work group, and that assignment was relatively permanent.
There was a considerable amount of security in working with the same people day in and day out. That predictability has
been replaced by temporary work groups, teams that include members from different departments and whose members
change all the time, and the increased use of employee rotation to fill constantly changing work assignment.
To days managers and employees must bear to cope with temporariness. They have to learn to live with
flexibility, spontaneity and unpredictability. The study of Ob can provide important insights into helping you better
understand a work world of continual change, how to over come resistant to change, and how best to create an
organizational culture that thrives on change.

x) Stimulating Innovation and Change

Todays successful organizations must foster innovation and master the art of change or they will become
candidates for extinction. Victory will go to the organizations that maintain flexibility, continually improve their quality
and beat their competition to the market place with a constant stream of innovative products and services. Employees are
key to innovation and change. The challenge for managers is to stimulate their employees creativity and tolerance for
change. The field of OB provides a wealth of ideas and techniques to aid in realizing these goals.

xi) Helping employees Balance work/Life Conflicts

In the 1960 or 1970 working hours are clearly specified that 8 or 9 hrs per day. Now this trend as changed , many
employees on global firms are on call 24 hours a day. The communication technology allows employees to do their work
at home, in their cars etc. Many people in technical and professional jobs do their work anytime and from any place. This
makes it increasingly difficult for employees, to find the time to fulfill their commitments to family.
Employees are increasingly recognizing that work is squeezing out personal lives and they are not supply about it.
Studies suggest that employees want jobs that give them flexibility in their work schedules so that they can better manage
work/life conflicts.
Organizations that dont help their people achieve work/life balance will find it increasingly hard to attract and
retain the most capable and motivated employees.
The field of OB offers a number of suggestions to guide managers in designing work places and jobs that can
help employees deal with work /life conflicts.

xii) Improving Ethical Behaviour

In an organizational world characterized by cutback, expectations of increasing worker productivity and tough
competition in the market place, it is not altogether surprising that many employees feel pressured to cut corners, break
rules and engage in other forms of questionable practice.
Members of organizations are increasingly finding themselves facing ethical dilemmas, situations in which they
are required to define right or wrong conduct.
Managers and their organizations are responding to this problems from a number of directions. They are writing
and distributing codes of ethics to guide employees through ethical dilemmas. They are offering seminars, workshops and
similar training programs to tey to improve ethical behaviours. They are providing in-house advisors who can contacted
in many cases anonymously for assistance in dealing with ethical issues. And they are creating protection mechanisms for
employees who reveal internal unethical practices.
Todays mangers needs to create an ethically healthy climate for his or her employees, where they can do their
work productively and confront a minimal degree of ambiguity regarding what constitutes right or wrong behaviours.

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