Organizational Behaviour

Organization as a system
• A car is a system - It is a collection of components which put together
in a particular way, will transport you
• In the same way organization is also a system
• system - made up of components which work together to achieve an overall
goal.

• Components (individuals, departments)

• Linking processes (communication, decision making)
• Goals ( mutual achievement of goals/ shared objectives)
• Organizations exist to provide goods and services that people want. These
goods and services are aimed to produce efficiently and effectively.
• Organization’s behaviour is the products of the behaviours of workers.
• Organisational behaviour actually refers to the behaviour of the people in
the organisations
• Three determinants of behaviour within organisations – individuals , group
and structure
• So, Organisational behaviour is a field of study that investigates the impact
that individuals, group and structure have on behaviour within
organisations.
• It describing, understanding, predicting and controlling human behaviour
in an organisational environment
• The importance & scope of Organisational Behaviour & their study is
growing rapidly due to changing cultural, ethical and business
environment of Organization
• the purpose of applying knowledge on OB toward improving an
organization's effectiveness.
Definition of Organization Behaviour
• Organisations have been described as groups of people who interact
to accomplish shared objectives.
• Organizational behaviour is the study of how people behave both
individually and within informal and formal groups
• Therefore, Organizational Behaviour can be defined as “the study of
human behaviour in the workplace, the interaction between people
and the organization, and the organization itself.”
SCOPE OF ORGANIZATIONAL BEHAVIOUR
1. People
• The people constitute the internal social system of the organization.
They consist of individuals and groups
• They are dynamic. They form, change and disband
• People are living, thinking and feeling being who created the
organization and try to achieve the objectives and goals
• Organizations are the associations of individuals. Individuals differ in
many respects such as personality, perception, attitudes, values, job
satisfaction, learning and motivation.
2. Structure
Structure defines the sole relationship of people in an organization
Different people in an organization are given different roles and they have
certain relationship with others
Structure relates to power and duties

3. Technology
Technology imparts the physical and economic conditions within which
people work.
The nature of technology depends very much on the nature of the
organization and influences the work or working conditions
(assistance of buildings, machines, tools, processes and resources)
4. Social System

Social system provides external environment which the organization

operates
Organization is a part of whole social system
One organization cannot give everything and therefore, there are many
other organizations. All these organizations influence each other
Importance of Understanding Organizational
Behaviour
• Can improve and change individual, group and organizational
behaviour to attain individual, group and organizational goals.
• Increase effectiveness, an organization's ability to achieve its goal
• Organizational Behaviour helps to understand different activities and
actions of people in organization.
• It also helps to motivate employees.
• It helps to predict human behaviours and control them.
• It helps to effective utilization of Human resources.
Functions of a Manager
• Functions of a manager are the various roles played by the manager in an
organization.
• A manager is accountable for all the happenings in the firm and is
answerable to the management. The seven major roles played by the
manager are:
• Planning
• Organizing
• Staffing
• Directing/leading
• Coordinating
• Reporting
• Budgeting
• Controlling
Importance of OB to a Manager
• Working with people from different cultures – OB helps to learn how
to adapt managerial style to their cultural, geographic and religious
disparities.
• Workforce diversity- Organization may consist heterogeneous mix of
people in terms of gender, race, age, ethnicity and sexual orientation
• Customer Service - OB can provide considerable guidance in helping
managers to create customer-responsive culture
• Ethics - to create an ethically healthy climate for his employees,
where they can work productively
Challenges for ORGANISATIONAL BEHAVIOUR
1.Managerial challenges
• Workforce diversity
• Changing demographics of workforce
• Growing number of youngsters
• Gender factor

2.Work place issues and challenges

• Employee rights
• Unionism
• Changed Employee expectations
3.Organizational challenges
• Improving quality and productivity
• Managing technology and innovations

4.Global challenges
• Managing global environment
• Managing cultural diversity

5.Environmental challenges
• Environment policies