DEFINITIONS OF ORGANIZATIONAL BEHAVIOR

According to Keith Davis “organizational behavior is the study and application of knowledge about how
people act within organizations. It is human tool for the human benefit. It applies broadly to behavior of people in all
type of organization such as business, government, schools, etc. it helps people, structure, technology, and the
external environment blend together in to an effective operative system”.

Stephen Robins defines organizational behavior as a “field of study that investigates the impact that
individuals, groups, and structure have an organization for the purpose of applying such knowledge improving an
organization’s effectiveness“.

There are many definitions about organizational behavior; every definition must include three important
features, (1) organizational behavior is the study of human behavior, (2) study about behavior in organisations and (3)
knowledge about human behavior would be useful in improving an organisation’s effectiveness.

Organizational behavior is the study of what an individual thinks feels or does in and around an organisation,
both individual and in group. It investigates people’s emotions and behavior, behavior and performances in a team,
systems and structures of organisations. It helps to explore and provide an understanding of all the factors that are
necessary to create an effective organisation.

FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOR

 Individual differences idea comes from psychology. Every person is different from the day of birth, every person
is unique and personal experiences make a person more different than the other. Every individual differs in many
ways like intelligence, physique, personality, learning capability, communicative ability etc. 


 A whole person indicates that when an individual is appointed in an organisation, he/she is not hired only on the
basis of skills, but also on likes and dislikes, pride and prejudices
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 Caused behavior indicates that when an individual behaves in an unmannerly fashion then there is a cause
behind it. 
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 Human dignity indicates that every individual needs to be treated differently. 

 Organisations are social systems indicates that from sociology we know that organisations are social systems;
therefore, the activities within the organisationsare governed by social and psychological laws. 
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 Mutuality of interest indicates that both the organization and people need each other. 
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 Holistic concept indicates that when all the above six concepts of organisational behavior are placed together a
holistic concept arises. 

What is Human Capital?

- Employees are the lifeline of an organization.
- Human capital plays a crucial role in increasing the productivity and output of an organization.

Ways for Organizations to Increase Human Capital

Constant Trainings
-Recruit the right person for the right role.
-Management can also sponsor the education of their employees for them to sharpen their skills and increase human
capital. Realistic training programs increase efficiency of an employee, who further increases the productivity of
organization.

Monitoring Performance
-Managers must take regular feedbacks from their subordinates. Introduce the concept of online weekly report
system, where each employee would have his/her own login ID and password.

Direct Communication
-Subordinates must be able to walk up to their manager’s cabin in case of queries.
 Defined Job Responsibilities
-Job responsibilities of employees must be clearly defined to expect the best out ofthem. Key responsibility areas must be
designed in line with an individual’s past work experience, educational qualification and area of interest. KRAs ought to reflect
essentialfunctions of one’s job.

Motivation
-Employees must be motivated from time to time for them to work harder even nexttime and for others to draw inspiration from
them. The talents of good employees must be recognized either by offering them lucrative incentives or giving them a decent
salaryhike.

Ways for an Individual to Boost his/her Human Capital

• Every employee should strive hard to increase his/her value in the organization.
 Remember there is no age limit for education. 
 Don’t just restrict yourself to a nine to five job. 
 Paul was a fifty years old employee working with Organization 
 It is absolutely okay if you are not aware of something. 
 Try to get involved as much as you can. 
 Information sharing also increases the efficiency of employees and eventually human capital..
 Volunteer for various training and skill development activities. 
 Don’t attend office just to earn your salary. 
 Start your day with a smile. 

WHAT IS GLOBALIZATION?

Globalization refers to the spread of the flow of financial products, goods, technology, information, and jobs
across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe
fostered through freetrade.

Understanding Globalization
Corporations gain a competitive advantage on multiple fronts through globalization.

Globalization is a social, cultural, political, and legal phenomenon.

 Socially, it leads to greater interaction among various populations.

 Culturally, globalization represents the exchange of ideas, values, and artisticexpression among cultures.
 Globalization also represents a trend toward the development of a single worldculture.
 Politically, globalization has shifted attention to intergovernmental organizationslike the United Nations (UN) and
the World Trade Organization (WTO).
 Legally, globalization has altered how international law is created and enforced.

The History of Globalization

Globalization is not a new concept. Traders traveled vast distances in ancient times to buy commodities that
were rare and expensive for sale in their homelands. TheIndustrial Revolution brought advances in transportation and
communication in the 19th century that eased trade across borders.

This evolution of economic systems has increased industrialization and financial opportunities in many
 nations. Governments now focus on removing barriers to trade and promoting international commerce.

Pros and Cons of Globalization

Pros
- Proponents of globalization believe it allows developing countries to catch up to industrialized nations through
increased manufacturing, diversification, economic expansion, and improvements in standards of living.

- Outsourcing by companies brings jobs and technology to developing countries, which helps them to grow their
economies. Trade initiatives increase cross-border tradingby removing supply-side and trade-related constraints.

-Globalization has advanced social justice on an international scale as well, and advocates report that it has
focused attention on human rights worldwide that might have otherwise been ignored on a large scale.

Cons
- Globalization has become a polarizing issue in the U.S. with the disappearance of entire industries to new
locations abroad. It's seen as a major factor in the economic squeeze on the middle class.

What Is Globalization and Why Is it Important?

- In essence, globalization is about the world becoming increasingly interconnected.
- Globalization is also important because it is one of the most powerful forces affecting the modern world, so much
so that it can be difficult to make sense of the worldwithout understanding globalization.

Is Globalization Good or Bad?

- It depends. Proponents of globalization will point to the dramatic decline in povertythat has taken place throughout
the world over the past several decades, which many economists attribute in part to increased trade and
investment between nations..

How Does Globalization Impact Society?

- Globalization has had a large impact on societies around the world, leading to massive migrations from rural to
industrial or urban areas, leading to the rapid growth of cities and trade hubs. While this has led to an overall
increase in incomes and a higher standard of living in general, it has also led to problems of urbanization
including crime, domestic violence, homelessness, and poverty.

Foreign Job Assignments

- An international assignment is an overseas task set by a company to an employee.

REASONS FOR INTERNATIONAL ASSIGNMENTS

There are three key organisational reasons for sendingemployees on international assignments. Position filling reasons
concerns the transfer oftechnical and managerial knowledge. Expatriates can be sent on international assignments to
transfer their own managerial knowledge and technical skills to workers in the host country. These assignments are
undertaken if there is a lack of available skills in the host country.[3] A 2016 report indicates 30% of international
assignments are for filling managerial gaps and 24% technical.[4] Expatriates are also sent on international
assignments for management development reasons to gain the international experienceand career growth. This form
of international assignment is increasingly known to be a fundamental building block to leadership competency.[2]
International assignments have a strong influence on building global and managerial competencies and have been
labelled as "the single most influential force for the development of managers".[5] The third reason for international
assignments is organisational development. MNCs may send expatriates on international assignments to exploit
global market opportunities and embed a culture of cross-border mobility.[3] Expatriates undertaking an international
assignment for organisation development reasons may gain a broader perspective and become familiar with more
operations.

Types of international assignments

-International assignments are often determined by duration and vary according tothe purpose and objectives of the task.

The three broad categories of international assignments consist of short term,extended and traditional long term
assignments.
Short term assignments are up to 6 months’ duration. The purpose of these assignments is often for management
development or problem solving and can include roles such as project supervision until a more long-term arrangement
can be found in the host country. In most short-term assignments, expatriates are unaccompanied by family and
receive less company benefits to support the relocation.
Extended assignments are extended short term assignments that last up to one year. MNCs have traditionally sent
employees on traditional long-term assignments.

Traditional long term assignments range from 12 –36 months and require the most rigorous expatriate selection
and training. Expatriates on traditional assignments receive support including relocation benefits, housing allowances
and annual home leave.

DIMENSIONS OF NATIONAL CULTURES

Psychologist Dr Geert Hofstede published his cultural dimension’s model at the end of the 1970s, based on
a decade of research. Since then, it's become an internationally recognized standard for understanding cultural
differences. Hofstede studied people who worked for IBM in more than 50 countries. Initially, he identified four
dimensions that could distinguish one culture from another. Later, he added fifth and sixth dimensions, in cooperation
with Drs Michael H. Bond and Michael Minkov.These are:

1. Power Distance Index (PDI)

-This refers to the degree of inequality that exists – and is accepted – between people withand without power.

2. Individualism Versus Collectivism (IDV)

-This refers to the strength of the ties that people have to others within their community.

3. Masculinity Versus Femininity (MAS)

-This refers to the distribution of roles between men and women.

4. Uncertainty Avoidance Index (UAI)

- This dimension describes how well people can cope with anxiety.

5. Long- Versus Short-Term Orientation

This dimension was originally described as "Pragmatic Versus Normative (PRA)." It refers to the time horizon people in a
society display. Countries with a long-term orientation tend to be pragmatic, modest, and more thrifty. In short-term
oriented countries, people tend to place more emphasis on principles, consistency and truth, and are typically
religious and nationalistic.
6. Indulgence Versus Restraint (IVR) - (Indulgence – democracy)

WHAT IS DIVERSITY?

Diversity is a strategic initiative followed by a firm that is voluntarily improving the diversity in its workforce.
Diversity is a widely inclusive approach that accepts everyone, including minorities such as women, the differently
abled, and war veterans, as well as any other groups of individuals regardless of their beliefs, religions, perspectives,
values, political views, sexual orientation, etc. Organizations that adopt diversity initiatives do not simply look to prevent
workplace discrimination but also aim to achieve a wider range of outcomes. Those include enhancing a company’s
profitability, cultivating more diverse perspectives and ideas, reaching new consumers and potential markets,
increasing creativity and obtaining a range of diverse solutions and perspectives on issues and problems.

What is diversity in the workplace?

Diversity in the workplace means that a company employs a wide range of diverse individuals with
different characteristics.

Workplace diversity - inclusion fad or a competitive advantage?

Even though this topic has been sparking the interest of many HR professionals for years now, its importance has never been
as prominent as today. Actually, workplacediversity was one of the key workplace trends in 2020. With the pandemic caused
by Covid-19, companies have turned to the global workforce and started hiring more and more diverse teams while working
remotely.

WHAT ARE THE BENEFITS OF DIVERSITY?

#1: Variety of different perspectives

- Since it means that employees will have different characteristics and backgrounds, they are also more likely to have a
variety of different skills and experiences.
#2: Increased creativity
-In addition to having a variety of different perspectives from people with different backgrounds, the exposure to a such
variety leads to increased creativity

#3: Higher innovation

- Creative idea. In a diverse workplace, employees are exposed to multiple perspectives and worldviews. When
these various perspectives combine, they often come togetherin novel ways, opening doors to innovation.

#4: Faster problem-solving

- Employees from diverse backgrounds have different experiences and views, whichis why they are able to will bring
diverse solutions to the table. Thus, the best solution canbe chosen sooner, which leads to faster problem-solving.
-
#5: Better decision making
- When employees with different backgrounds and perspectives come together, they come up with more solutions,
which leads to the more informed and improved decision-making processes and results.

#6: Increased profits

- Companies with a diverse workforce make better decisions faster, which gives them a serious advantage over
their competitors. As a result, companies with diversity inthe workplace achieve better business results and reap
more profit.
-
#7: Higher employee engagement
- The link between workplace diversity and employee engagement is pretty straightforward - when
employees feel included, they are more engaged.
-
#8: Reduced employee turnover
- By creating commitment to diversity and employees create a sense of belonging to the company and are less
likely to leave.
-
#9: Better company reputation
- Companies that are dedicated to building and promoting diversity in the workplaceare seen as good, more human
and socially responsible organizations which ultimately creates a better reputation for the brand.
-
#10: Improved hiring results
-Diversity in the workplace boosts a company’s employer brand and presents a company as a more desirable
place to work. Workplace diversity is an especially beneficial asset for attracting top talent from diverse
talent pools.

DIVERSITY VS AFFIRMATIVE ACTION

- Affirmative action and diversity are both measures that are taken with the aim of encouraging corporations to
hire and promote workers from diverse backgrounds.

What is Affirmative Action?

- An order to provide equal employment opportunities to individuals regardless of their color, race, creed or
nationality. Therefore, affirmative action is a set of policies that have powered equal opportunities legislation
mandating equal employment opportunitiesto all.

Affirmative Action vs Diversity

- Diversity and affirmative action are both initiatives that go hand in hand. However, diversity takes a step further
than affirmative action and builds on the initial ideas and concepts of equal opportunity employment. Without
affirmative action a firm would not beable to recruit and promote a diverse workforce, without which the window to
diversity initiatives would not be accessible where people are valued for the differences and unique ideas, beliefs,
values, etc.

There are, however, a number of differences between the two.

- Affirmative action is focused on improving the number of diverse employees hired. Diversity, on the other hand,
aims at changing the organization’s culture to be more accepting of varying views, values and differences. While
affirmative action is mandatory, diversity is voluntary and focuses on a wider approach to include not only those
previously disadvantaged, but also to include other groups of individuals regardless of their beliefs, religions,
perspectives, values, political views, sexual orientation, etc.
What is the difference between Diversity and Affirmative Action?
- Affirmative action and diversity are both measures that are taken with the aim of encouraging corporations
to hire and promote workers from diverse backgrounds.
- Affirmative action was first used by American President John F. Kennedy when issuing legislation to provide equal
employment opportunities to individuals, regardless of their color, race, creed or nationality.
- Diversity is a strategic initiative followed by a firm that is voluntarily improving the diversity in its workforce.

What Is the Role of Ethics in Organizational Behavior?

- The functionality and success of an organization may be attributed to many factors, including productivity,
business acumen, and a healthy organizational culture. The role of ethics in organizational behavior underlies
many of the keys to success and sustainability by creating a set of rules and guidelines that promote safety,
trust, and responsibility in the workplace. When considering the role of ethics in organizational behavior, it is
important to consider both individual and communal ethical issues.

- Ethics is generally defined as behaving in a morally correct fashion, although the exact definition of “moral
correctness” may vary between organizations. In general, an organizational code of ethics exists to promote a
culture in which all actions promote the good of the individual, the organization, and the community serving or
surrounding the organization. By creating and enforcing workplace culture with a strong ethical code, an
organization can reap the benefits in several different ways.

For individuals, the role of ethics in organizational behavior helps ensure that eachperson is treated fairly and
maintains personal responsibility. Ensuring that each personearns a fair market wage based on his effort, experience,
and performance is one example of an ethical guideline that greatly affects individuals. Similarly, by clearly outlining
personal responsibility, such as not padding expenses or abusing sick leave, ethical codes can help ensure that a
high level of trust exists between co-workers. In general, if an employee feels that he is treated fairly and can trust his
co-workers and superiors, loyalty, and thus productivity may rise.

The role of ethics in organizational behavior can also greatly impact how the entity acts as a whole. Even if
individuals follow a strong code of ethics, if the larger organization acts unethically, the positive effect may be negated.
For instance, even if all mid-level workers in an office act fairly and morally toward one another, if managers are
allowed to get away with sexual harassment or insider trading, the entire system can become a hostile, dangerous
environment that can erode loyalty and beget more problems. One of the keys to promoting a healthy organizational
culture is ensuring that the rules are the same throughout all levels of the organization.

In addition to maintaining internal behavioral standards, part of the role of ethics in organizational behavior is to ensure
that the entity is behaving positively in the community at large. If a company engages in behavior that damages the
community, the ramifications will often filter down into the organization itself. One example of this might be a significant
decrease in employee loyalty after a newspaper article discloses that the business uses sweatshop labor to
manufacture products. Assisting the community in a positive way canhelp improve employee loyalty, attract better
employees, and bring new business opportunities by maintaining an ethical reputation.