PES1UG20EC031.

A SECTION

ENGINEERING MANAGEMENT - UE20EC400H

ANKUSH GUPTA

ORGANISATIONAL
BEHAVIOUR
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WHAT IS ORGANISATIONAL BEHAVIOUR????

Organisational behaviour is the study of human nature within the organisational setting. It dives into
the interplay between individuals, groups, and the organisation. While business operations are driven
by pro t, productivity, and strategic planning, organisational behaviour recognises the impact of
human values and well-being on an organisation.

Organisations have embraced the notion that a workplace environment depends on positive employee
experiences. Recognising that it entirely depends on the shoulders of its workforce.This shift in
perspective highlights the paramount importance of organisational behaviour in unlocking the full
potential of human resources.

Organisational behaviour seeks to create a work environment that nurtures employee engagement,
encourages innovation, and promotes growth.

WHY ORGANISATIONAL BEHAVIOUR????

It tells us how the peers would interact with each other in an organisation and then
these will dictate how the organisation spans over time weather it leads to more
innovation in a organisation or to a very toxic environment in the organisation pulling
hand breaks to innovation and sustenance.

• Increased innovation
• Increased productivity and performance
• Increased trust between employees and the company/management
• Bringing out leadership qualities of employees
• Employees are more likely to behave ethically
• Reduction in worker attrition and turnover

MAJOR LIMITATIONS !!!!!

1. Behavioral Bias:

Are errors in thinking that can in uence how we perceive, interpret, and react to information.These
biases can have a signi cant impact on decision-making and behavior.

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Unfair or inaccurate decisions: Managers who are biased may make unfair decisions about
hiring ,promotion, and discipline.

• Groupthink: When members of a group are all biased in the same way, they may become
more likely to agree with each other, even if their thinking is awed. This can lead to
groupthink, which can prevent the group from making sound decisions.
• Miscommunication: Behavioral biases can also lead to miscommunication between
individuals and groups. For example, if a manager is biased against a particular employee,
they may be more likely to misinterpret the employee's words or actions.

2. The Law of Diminishing Returns:

The law of diminishing returns is a principle that states that as more of a variable is added to a
system, the bene t of that variable will decrease.

• Motivation: As more rewards are offered to employees, the bene t of each additional reward
will decrease.
• Training: As employees receive more training, the bene t of each additional training session
will decrease.
• Communication: As more communication channels are opened up, the bene t of each
additional channel will decrease.

3. Unethical Manipulation of People:

OB principles can be used to manipulate people in unethical ways.

• Exploit employees: Example, an employer might know the need of an employee's money to
pressure them to work long hours or accept lower wages.
• Damage employee morale: An employer might use OB principles to create a workplace
environment that is hostile or oppressive.
• Discriminate against employees: An employer might use OB principles to identify and
discriminate against employees who are different from the majority.

MAJOR FACTORS !!!!!

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1. People: Understanding the individual quirks ,personalities and motivations is important for a
productive and engaging work environment.

2. Structure: The organizational structure de nes the framework within which employees
operate. It encompasses the hierarchy of authority, reporting relationships, and the division of
responsibilities.

3. Technology: From communication tools to automation systems, technology plays a

signi cant role in shaping employee behavior and in uencing organizational processes.

4. Environment: Organizations operate within both internal and external environments. The
internal environment includes factors such as the company culture, leadership style, and
workplace dynamics. The external environment encompasses economic conditions, industry
trends, and societal expectations.

MODELS OF ORGANISATIONAL BEHAVIOUR

Autocratic Model

• Key Characteristics:

• Centralized decision-making power

• Strict adherence to rules and procedures
• Limited employee input
• Strengths:

• Clear lines of authority

• Quick decision-making
• Suitable for situations requiring tight control
• Weaknesses:

• Can sti e creativity and innovation

• May lead to low employee morale
• Not suitable for all types of organizations
Custodial Model

• Key Characteristics:

• Managers focus on employee well-being and security

• Emphasis on providing bene ts and job security
• Managers act as paternal gures

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• Strengths:

• High levels of employee loyalty

• Improved employee morale
• Weaknesses:

• Can lead to complacency and dependency

• Managers may not be able to deal with complex problems
Supportive Model

• Key Characteristics:

• Managers focus on understanding and motivating employees

• Emphasis on creating a supportive and positive work environment
• Employees are encouraged to participate in decision-making
• Strengths:

• Improved communication and collaboration

• Higher levels of innovation and creativity
• Weaknesses:

• Can be time-consuming to implement

• May not be effective in all workplaces
System Model

• Key Characteristics:

• Emphasis on interdependencies and relationships

• Managers act as catalysts for change
• Employees are empowered to make decisions
• Strengths:

• Increased organizational adaptability

• Improved problem-solving.
• Higher employee satisfaction

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• Weaknesses:

Requires a high level of trust and cooperation

May not be effective in all types of organizations

Collegial Model

• Key Characteristics:

• Managers and employees work as a team

• Emphasis on shared responsibility and decision-making
• Employees are empowered to take ownership of their work
• Strengths:

• Increased employee engagement and motivation

• Improved communication and collaboration
• Higher levels of innovation and creativity
• Weaknesses:

• Can be dif cult to implement in organizations with a strong hierarchical structure

• Requires a high level of trust and cooperation

ALL IN ALL!!!

In essence, organizational behavior is not con ned to the human resources department alone; it is in
the fabric of the entire organization. A profound understanding of how individuals and groups behave
in the workplace equips leaders and employees a like with the tools necessary to cultivate a positive,
productive, and adaptive organizational culture. By embracing the principles of organizational
behavior, companies can navigate challenges, promote innovation, and foster a work environment
that nurtures both individual and collective success.

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THANK YOU!!!