Business Administration

An organization is a collection of people who

work together to achieve individual and
organizational goals.
Organization is the integration of people to achieve
the specific objective and meet at regular time.
Organisation may be studied from 2
perspectives-
Micro Perspective Macro Perspective
Focuses on Human being as
Focuses on Organization as a
a individual
unit
Individual psychological
Study of human behaviour as
makeup, his interaction with
a collectively of people &
other individuals & groups,
deals with how org. is
variables determining his
structured, how technology
behaviour in org. & the
affects people in the org., &
strategy that may be adopted
how org. interacts with its
to govern this behaviour
environment.
 According to Mooney and Reiley
“Organization is the form of every human
association for the attainment of a common
purpose.”
 In other words, Organization is simply people
working together for a common goal.
What can be included What can be excluded
in the Organisation ? in the Organisation ?
• Companies • Tribes

• Armies • Families

• Hospitals • Friendship Groups

• The way in which one acts or conducts
oneself, especially towards others.
• What they do ?
• How they do ?
 Elements of
Attitude Behaviour Values

Actions Morales

Reactions Decisions

Knowledge
 What people do in the organization ?
 How their behavior affect the organizational
performance ?
It studies human behavior at –
 Individual Level
 Group Level
 Organizational level
 Definition: According to Aldag & Brief “ OB is a
Branch of social sciences that seeks to build
theories that can be applied to predicting,
understanding and controlling behavior in work
organization.”
O + B = OB
Organization + Behavior = Organizational Behavior

Integration of What they do? Study of human

Various individuals, How they do? Behavior in the
groups & structure organization
1. “the study of human behavior, attitudes and performance within an
organizational setting;
2. drawing on theory, methods and principles from such disciplines--
-
3. as psychology, sociology, and cultural anthropology to learn about
individual perception, values, learning capabilities, and actions
4. while working with groups and within the total organization;
5. analyzing the external environment’s effect on the organization
6. and its human resources, missions, objectives and strategies.”

 Organizational behavior is defines as “The understanding,

prediction and management of human behavior in organizations.”
Fred Luthans
A Field of Study, not a Discipline

Interdisciplinary Approach

An applied Science

Normative & Value centered

Humanistic & Optimistic

Oriented towards Organizational Objectives

A total systems approach

 A discipline is an accepted science with a
theoretical foundation that serves as the
basis for research & analysis.
 It is a eclectic field of study that integrates
behavioral sciences like psychology,
sociology, anthropology etc.
 An interdisciplinary approach integrates the
relevant knowledge drawn from different
disciplines for some specific purpose.
 It draws from psychology, sociology,
anthropology, economics, law and etc.
 Organizational behavior is both science as
well as arts.
 It focused on solve various organizational
problems related to human behavior.
 A normative science unlike the positive
science which only suggests cause–effect
relationship, prescribes how the various
findings of the researches can be applied to
get organizational results which are
acceptable to the society.
 Focus the attention on people from
humanistic point of view.
 Based on the belief that needs and motivation
of people are of high concern.
 There is optimism about the innate potential
of man to be independent, creative,
productive & capable of contributing
positively to the objectives of the
organizations.
 OB emphasis on achievement of Individual
objectives and organizational objectives both.
 It tries to integrate both types of objectives
so that these are achieved simultaneously.
 It is a total system approach wherein the
living system of an organization is viewed as
an enlargement of man.
 It is an integrative approach which takes into
account all the variables affecting
organizational functioning.
 Man’s nature is quite complex, and OB by
applying systems approach tries to find
solution of the complexity.
 OB is not a discipline in itself but it uses
knowledge developed in the relevant
Disciplines.
 It is basically a concepts and principles from
behavioral sciences like: psychology,
sociology, social psychology, anthropology,
political science, management, economics
etc.
 Psychology comes from the Greek word
‘psyche’ meaning soul or spirit which
defined as the science of behavior.
 The science that seeks to measure,
explain, and sometimes change the
behavior of humans and other animals.
 It is concern with studying & attempting
to understand individual behavior.
 Unit of Analysis: Individual
 The psychological concepts relevant to organizational behavior
include:-
 Perception
 Personality
 Motivation
 Learning
 Values
 Attitudes
 Job satisfaction
 Leadership
 Psychology studies behavior in various conditions- normal,
abnormal, social, industrial, legal; childhood, adolescence,
old age etc.
 It also studies processes of human behavior, such as learning,
thinking, memory, sensation, perception, emotion, feeling
and personality.
 Knowledge about man’s social behavior.
 It study the way in which people act towards one
another.
 It studies social groups, social behavior, social class,
status, social mobility and prestige.
 While psychologists focus their attention on the
individual, sociologist study the social system in
which individuals fill their roles.
 Unit of Analysis: Group, Organization
system
 o Group dynamics
◦ Team Work
◦ Communication
◦ Power & Policies
◦ Conflict
◦ Intergroup behavior
◦ Organization theory
◦ Organization change
 Sociologist made their great contribution to
Organization Behavior through the study of
group behavior in organization.
 An area within psychology that blends
concepts from psychology and sociology
and that focuses on the influence of
people on one another.
◦ Unit of Analysis:
Group
◦ Contributions to OB:
 Behavioral change
 Attitude change
 Communication
 Group processes
 Group decision making
 It combines the Greek words ‘Anthropo’ meaning man and
the noun ending ‘logy’ meaning science. So it is defined as
the science of man.
 The study of societies to learn about human beings and their
activities.
 It studies civilization, forms of cultures and their impact on
individuals and groups, biological features of man and
evolutionary pattern, speech and relationship among
languages.
 It works on cultures & environment has helped to
understand differences in fundamental values, attitudes,
and behavior between people in different countries and
within different organizations.
 Unit of Analysis:
◦ Organizational System
◦ Group
 ◦ Organizational culture
◦ Organizational environment
• Comparative values
• Comparative attitudes
• Cross-cultural analysis
• Comparative values
 Anthropologist work on cultures and environment has
helped us understand differences in fundamental
values, attitudes, behavior between people in different
countries and within different organisations.
 Political Science studies the behavior of
individuals & groups within a political
environment.
 Some topics are- Structuring of conflict,
allocation of power etc.
 It is application of knowledge.
 Technology influences the human behavior
directly and significantly by influencing job
designs, relationship between employees,
machinery, organizational, structure, working
styles of employees etc.
 Perception
 Communication
 Work environment
 Team work
 Team Dynamics
 Decision- making
 Knowledge management
 Management is getting things done by the
people.
 In other words, people are directed and
motivated to get the things done.
 Thus management contributes to OB in
building decision- making models,
communication patterns, leadership styles
etc.
 Decision-making
 Leadership
 Motivation
 Manage the behavior towards the strategic
requirements
 Communication
 Organizational structure
 Economics is the science which studies human
behavior as a relationship between ends and
scarce means which have alternatives uses.
 The contribution of Economics to OB include:-
Motivation
 Learning
 Decision- making

 In this way OB is multi-disciplinary in nature and

being studied by managers, engineers,
sociologists, politicians and psychologist for
research in various fields.
 OB offers several ideas to management as to how
human factor should be properly emphasized to
achieve organizational objectives.
 OB helps to human being in changing money
motivated behavior to multimotivated behavior.
 It helps the manager to understand the behavioral
pattern of the people and shape this pattern to
achieve organizational objectives.
 Understanding human behaviour

 Individual Level
 Interpersonal Level
 Group Level
 Intergroup level
 Controlling and Directing human Behaviour
Use of Power and Sanction
 Leadership
 Communication
 Organizational Climate
 Organizational Adaption