Organizational Behavior: Organization: An organization is a group of people working together in an organized way to achieve a common objective (goal). The main objective is profit maximization. Behavior: It is how a person behaves. It is an observable and measurable activity of human being. Organizational Behavior tries to understand human behavior in the organization. OB is the part of total management. But plays a very important role in every area of management and has been accepted by all the people concerned. The managers now understand that to make their organization more effective, they have to understand and predict the human behavior in the organization Definition of Organizational Behavior: 1. According to Stephen, Organizational behavior is a study that investigates the impact that individuals, groups and structures have on behavior within the organization, for the purpose of applying such knowledge towards improving organizational effectiveness. 2. According to Davis, Organizational behavior is the study and application of knowledge about how people act within the organization. 3. According to Luthans, Organizational behavior is directly concerned with the understanding, production and control of human behavior in organization. Micro-level organizational behavior is the study of individual that is psychology, behavior with others, work process etc. Macro-level organizational is the study of organization as a unit of analysis. Its related to promotion or demotion or growth of organization. Need and Importance of Organizational Behavior: The need and importance of organizational behavior are as under: 1. Skill Improvement: Study of organizational behavior helps to improve skills. This includes the ability of employees and use of knowledge to become more efficient. It also improves managers, as well as other employees, work skill. 2. Understanding consumer buying behavior: It is also an important part to improve the marketing process by understanding consumer (buying) behavior. 1[Page3. Employee motivation: 08 helps to understand the basis of Motivation and provide different ways to motivate employees properly. 4, Nature of Employees: Understanding of personnel and employee nature is important to manage them properly. With the help of OB, we can understand whether employees or people are Introvert (person who enjoys spending time alone), Extrovert (person who enjoys being around other people), Motivated, Dominating etc. 5. Anticipating organizational events: The scientific study of behaviour helps to understand and predict organizational events. For example Annual Business Planning, Demand Management, Product line management, Production Planning, Resources Scheduling, Logistics etc. 6. Efficiency and Effectiveness: Study of Organizational Behavior helps to increase efficiency and effectiveness of the organization. 7. Better Environment of Organization: Organizational Behavior helps to create a healthy, ethical and smooth environment in an organization. 8. Optimum or better utilization of resources: Study of OB helps to understand employees, their work style and their skills in a better way. By understanding this, management can train and motivate employees for optimum utilization of resources. 9. Importance of OB in the Goodwill of organization: Organizational Behaviour helps to improve Goodwill of organization. This helps to increase efficiency and productivity. Thus, may lead to an increase in the profit of the organization. Nature of People: There are two fundamental concepts of Organizational Behavior, such as: 1. The nature of people. 2. The nature of organization i. The nature of people: In simple words, nature of people is the basic qualities of a person, or the character that personifies an individual they can be similar or unique. Talking at the organizational level, some major factors affecting the nature of people have been highlighted. They are: Individual differences. 2Perception. 2[Page3.A whole person. 4.Motivated behavior 5.Desire of involvement 6. Value of the person. 1. Individual differences: Organizational behavior assumes that all the individuals are different from each other. A person is different in millions of ways. For example, each person's DNA profile is different from one another. As each person is unique so management can motivate employees by different ways. Management should consider carefully the law of individual differences. 2. Perception: Perception is an individual's own view. Each person has a unique way to see, organize and interpret about event, people and things. People may differ in personalities, needs, demographic factors (age, gender, income), past experience and so on. Management learns to guide their employees who have perceptual difference. 3. A whole person: Organizational behavior assumes that an individual should be considered as a whole person. We cannot separate individual's psychology, beliefs, values, attitude from physical work settings. Management needs to care about whole person. If the whole person can be improved, the organization will be benefited. 4, Motivated behavoiur: Motivation is the willingness to do something to achieve organizational goals and, at the same time, to satisfy individual needs. An organization with sophisticated technology and equipment cannot work, if the human resources are not motivated and guided properly. So, the management should inspire or motivate the human resources by providing different kinds of facilities. 5. Desire of involvement: individuals have desire for involvement in work. They want to show their creativity, skills, and efficiency while doing the work. So organization need to provide opportunities for their meaningful involvement. 6. Value of the person: Organizational behavior assumes that people are more valuable and different than non-living things. Employees should be treated with respect, dignity and equity by the organizations. Employees should not be treated only as economic tools. ii, The nature of Organization: Nature of organization states the motive of the firm. It is the opportunities it provides in the global market. It also defines the employees’ standard; in short, it defines the character of the company by acting as a mirror reflection of the company. We can 3|Pageunderstand the nature of any firm with its social system, the mutual interest it shares and the work ethics. There are three key concepts about the nature of organization: 1.Social system 2.Mutual system 3.Ethics system 1. Social system: Organizations are social systems governed by social laws and psychological laws. People’s behaviour in an organization are influenced by the group as well as by individuals. Two types of social system exist in an organization, one is formal and other is informal. The idea of social system provides a framework for analyzing organizational behaviour issues. It helps to make organizational behavior problems understandable and manageable. Formal social system: Groups formed by people working together in a firm or people that belong to the same club is considered as formal social system. Example — Assuccess patty after getting a project. Informal social system: A group of friends, people socializing with others freely, enjoying, partying or chilling. Example ~ Birthday party.1” 2. Mutual system: Every organization needs people and people need organizations to survive and prosper. Basically, it is a mutual understanding between the organization and the employees that helps both reach their respective objectives. Example - We deposit our money in the bank, in return the bank gives us loan, interest, etc. 3. Ethics system: Inorder to attract and retain valuable or experienced employees, ethical treatment is necessary. Companies have established code of ethics, provided ethics training, rewarded employees for notable ethical behavior. Features of Organizational Behavior: Following are some of the features of OB: 1. Behavioural study of knowledge: Organizational behaviour is the study of knowledge that shows the behaviour of the people in the organization includes its performance, discipline etc. 2. Interdisciplinary approach: Organizational behaviour is the study of interdisciplinary approach that is essential to study the behaviour of human beings at work. It helps to integrate the efforts of every individual working in the organization. 4|Page3. Science as well as art: Organizational behaviour is the science because it applies the principles and concepts objectively. It is also an art because its application changes as and when required. 4, Multi-disciplinary approach: 08 uses various principles, practices and theories of various disciplines such as Law, History, Political science etc. Hence treated as multi- disciplinary approach. 5. Rational approach: O8 is the rational approach and rational thinking. It is not an emotional feeling about the humans. As a main goal, it always tries to predict and judge human behaviour. 6. Total system approach: Total system approach is the one that integrates all variables, affecting functions of the organization. An organizational behaviour is the total system approach that also influences the human behaviour in the organization and thus functions of the management also affected. Models of OB: There are 5 different types of models in organizational behavior: i. Autocratic model ii. Custodial model Supportive model iv. Collegial model v. System model 1. Autocratic model: Autocracy means power is held by one individual or few. In this model, power lies with the management, they instruct, dictate subordinates to do the task exactly what they want. Commands or instructions comes from top to bottom. There is no participation of employees in decision making, managers do this task by our own. Also, no feedback or suggestions are taken from the employees. Managers have full authority of selection and dismissal of employees from the job. Employees performance are lower because they are less skilled, no training or development program exists. Performance of some employees are exceptional as they want to come close to the boss/manager. The major drawbacks of this model are people are easily frustrated, insecurity, dependency on the managers, minimum performance because of minimum wage. S|Page2. Custodial model: Autocratic model results in separation between management and employees which develops frustration, insecurity and aggressive behaviour among employees. In the custodial model, management starts thinking about employees economic security and social security. Management understands employee's needs and develop ways to get them motivated and satisfied. Economic security includes: incentives and rewards, health care facilities, free transportation, free kids education etc. The custodial approach leads employee to depend on the organization. Rather than being dependent on their boss for their weekly bread, employees now depend on organizations for their security and welfare. Custodial model is based on rewards. The major drawbacks of this model is that it ignores the psychology of employees and also all employees may not be satisfied with material benefits, some may want praise, recognition and name. 3. Supportive model: Unlike the previous two models, the supportive model focuses on a motivated and inspiring leader. There is no space for authoritative power or control in this model or on reward schemes. This model works to develop better working relationship between manager and employees. A positive workplace environment develops self-motivation among employees. It gives a climate that help employees to grow and accomplish the job in the interest of the organization. Management assist and support employees to. grow their skills and complete their task in a better way. This model develops sense of participation among employees. The major drawbacks of this model is that managers have to give more time and effort to support employees. 4. Collegial modi The collegial model is an extension of the supportive model. It is based on team concept. The model of organizational behavior focuses on promoting teamwork in the organization. Under this model, all organization's employees are team members, no one is superior to anyone, no one is a subordinate, all are equal. Here, the manager works as a team member and also as a coach or mentor who guides team members how to complete the task in a best possible way. Manager develops positive workplace environment. Manager is concerned with team’s performance and individual employee is concerned with his performance. This model assumes teamwork is better than individual work and it has the potential to get better results. The major drawbacks of this model is that all team members may not contribute their full efforts. 6|Page5. System model: ‘System model is applicable in most of the firms now a days. Now employees are more concerned about their value or meaning in the organization, other than their salary, job security etc. Managers create hope, trust, self-determination, mutual understanding in employees and through this they develop positive work culture where employees can put their maximum efforts to achieve organizational goals. Managers make sure skills, talent, and goals of in organizational goals. uals are inline with 7|PageMotivation Concept: Motivation is the willingness of a person to make intense (hard) and persistent (continuous) efforts to achieve desired goals. The word Motivation is derived from the Latin word "Movere” which means “To move" or “To drive forward”. Motivation is a psychological term which means it cannot be forced on employees. It comes automatically from inside the employees as it is the willingness to do the work. The purpose of motivation is to create conditions in which people are willing to work with zeal and interest with a sense of responsibility, loyalty and discipline so that the goals ‘of an organization are achieved effectively. There are three components of motivati 1. Direction: what a person is trying to do. 2. Effort: How hard a person is trying. 3. Persistence: How long a person keeps on trying. According to Dubin, Motivation is the complex set of forces that starting and keeping a person at work in an organization. Types of Motivation: 1. Positive motivation 2. Negative motivation 1.Positive motivation: Positive motivation or incentive motivation is based on rewards. The workers are offered incentives (rewards) for achieving the desired goals. The incentives may be in the shape of more pay, promotion, recognition of work, etc. The employees are offered the incentives and try to improve their performance willingly. 2. Negative motivation Negative or fear motivation is based on force or fear. Fear causes employees to act in a certain way. In case, they do not act accordingly then they may be punished with demotions or less salary. Negative motivation means the act of forcing employees to work by means of threat and punishment. The fear acts as a push mechanism. Importance of Motivation: The importance of motivation is discussed below: 1. Cooperation and Goals: 7| PageMotivated employees cooperate willingly with the management and thus contribute maximum towards the goals of the company. 2. Increase Productivity: Motivated employees attempt to enhance their knowledge and skills. This enables increase in the productivity. 3. High Efficiency: It has been observed that when motivated employees work sincerely towards their given tasks, it helps in conserving the organizational resources. This results in improvement in efficiency. 4. Increase Job Satisfaction: Higher motivation paves the way for a higher job satisfaction of the employees. A motivated employee wants opportunities for satisfying needs, becomes loyal and committed towards his work and eventually towards the organization. 5. Better Relations: The number of complaints and grievances reduce when the employees are highly motivated. 6. Good Image: If the employees of the organizational are motivated and satisfied with the work environment, the image of the company boosts in the industry. Theories of Motivation 1. Maslow’s Need Hierarchy Theory: AH Maslow thought that the person’s motivational needs could be arranged in a hierarchical manner, basic needs to higher needs, starting in an ascending order from the lowest to the highest needs. According to him, once a lower-level needs of an individual is met, he moves towards the next-level needs. Maslow identified five levels in his need hierarchy theory in an ascending order of importance. He says that when the basic needs of a person are fulfilled, it moves to the next need till its higher needs get fulfilled. The five categories of needs may be described as follows: 1. Physiological Needs: These needs include the basic needs of an individual which include food, air, water and shelter. They are lower-order needs and they need to be met first in order to move an individual for higher level needs. If these needs are not satisfied the human body cannot function properly. Maslow considered physiological needs the most B[Pageimportant as all the other needs become secondary until these needs are met. These needs are fulfilled by paying adequate remuneration (salary) for the work done. Self-fulfillment Is 2. Safety needs: ‘once an individual's physiological needs are satisfied, the needs for security and safety becomes important. Safety or security needs are concerned with freedom from physical or psychological (mental) harm, danger, deprivation, or threat, such as loss of job, property, food, clothing or shelter. Safety needs are fulfilled by job security, pension, insurance etc. 3. Belongingness and love needs: After physiological and safety needs have been fulfilled, the needs for belongingness and love becomes necessary. These needs include the needs for love, affection and interaction with people. These needs are also called affiliation or social needs. Social needs are essential to humans so that they do not feel isolated and depressed. Social needs are met through friendships, family, intimacy and relationship. These needs are satisfied by creating harmonious groups, cooperative teamwork etc. 4, Esteem needs: 9|PageThese needs include two aspects: self-esteem or self-respect through personal achievement and social-esteem through respect and appreciation from others. These needs represent needs for self-respect, respect of others, a general feeling of being worthwhile, competence, achievement, knowledge, independence, reputation, status and recognition. These needs are satisfied by recognition, promotion, awards etc. 5. Self-actualization Needs: These needs refers to realizing or reaching to the aim of your life. Once the employee becomes what he wants to become, it means satisfaction of his actualization needs These needs are fulfilled by providing challenging work and opportunity. 2. Herzberg’s Motivation-Hygiene Theory: *Motivation-Hygiene Theory” or “Two Factor Theory” or “Dual-Structure Theory” is given by US scientist Fedrick Herzberg. This theory is based on empirical research on job attitudes of 200 engineers and accountants of a company. They were asked to share their previous job experiences in which they felt “exceptionally good” or “exceptionally bad.” Through this study, Herzberg concluded that there are two job conditions independent of each other that affect the behavior differently. The first set of job conditions has been referred to as maintenance or hygiene factor, wherein the same job conditions provide the same level of dissatisfaction, in case the conditions are absent, however, their presence does not motivate in a strong way. The second set of job conditions is referred to as motivational factors, which primarily operate to build strong motivation and high job satisfaction, but their absence does not result in strong dissatisfaction. 1. Hygiene factors or maintenance factors: According to Herzberg, hygiene factors are those factors which are necessary to maintain a reasonable level of satisfaction among employees. These factors do not provide satisfaction to the employees but their absence will dissatisfy them. Therefore, these factors are called dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These are not intrinsic parts of a job but they are related to conditions under which a job is performed. In other words, hygiene factors are not capable of motivating employees. They simply prevent dissatisfaction in employees and help in maintaining the status. Hygiene factors include: 10|Pagei. Company policies: These should be fair and clear to every employee. They must also be equivalent to those of competitors. Relationships: There should be no tolerance for oppression. A healthy and appropriate relationship should exist between employees, superiors, and subordinates. Work conditions: Equipment and the working environment should be safe, fit for purpose, and hygienic. iv. Salary: The pay structure should be fair and reasonable. It should also be competitive with other organizations in the same industry. v. Status: The organization should maintain the status of all employees within the organization. Performing meaningful work can provide a sense of status. vi. Security: It is important that employees feel that their job is secure and they are not under the constant threat of being job-less. 2. Motivational Factors: Motivational factors are also called as satisfiers. Motivational factors are those factors which are capable of stimulating employees for higher performance. These factors are internal to the jobs that provide satisfaction. The presence of these factors encourages employees to give their best often leading to higher productivity, higher morale and higher job satisfaction. Motivating factors are intrinsic part of the job. Any increase in these factors will satisfy the employees and help to improve performance. But a decrease in these factors will not cause dissatisfaction. Motivational factors include: i. Achievement: A job must give an employee a sense of achievement. This will provide a proud feeling of having done something difficult but valuable. Recognition: A job must provide an employee with praise and recognition for his success. This recognition should come from both their superiors and their managers. Responsibility: Employees should “own” their work. They should hold themselves responsible for this completion and not feel as they are being controlled. iv. Advancement: Promotion opportunities should exist for the employee. v. Growth: The job should give employees the opportunity to learn new skills. 11|Page