Chapter 1

What Is
Organizational Behavior?

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 Definition
• Organizational behaviour, is “… a study and
application of knowledge about human behaviour
– as individuals and in groups – in orgns – strives
to identify ways in which people can act more
effectively.”
• “The understanding, prediction and management
of human behaviour in organisations.”
• Is an applied science- best practices in one orgn can
be communicated to others

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What is Organizational Behavior?

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 Organizational Behavior
• Organizational behavior studies the influence
that individuals, groups, and structure have on
behavior within organizations
• Organizational behavior looks at how individuals,
groups, and structure can influence the behavior
within an organization. This study is done so that
we can use the knowledge to improve
organizational outcomes and thereby its
effectiveness.
• Its chief goal is to apply that knowledge toward
improving an organization’s effectiveness
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 Importance of O.B
1. To understand organization and employees in a better way
1. What causes behaviour ?
2. Why particular antecedents cause behaviour ?
3. Which antecedents of behaviour can be controlled directly and which
are beyond control ?
2. To motivate employees : understanding employees help managers to use
motivational tools to motivate them.
3. Improve industrial / labour relation: OB is human tool for human and it
considers human problem humanly. It uderstands the root cause of the
problem and accordingly tries to solve the problem. this practice
improves industrial relation.
4. Prediction and control human behaviour : Understanding the
antecedents of behaviour (what makes them the way they are behaving)
helps managers to predict and control the employee’s behaviour
5. Effective utilization of human resources. : OB identifies root cause of the
problem, individuals. Thus, applying knowledge of can help managers to
motivate employees.

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 Elements of OB
1. People
2. Organization Structure
3. Technology
4. External Environmental forces PESTEL

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 Focal Points of OB

• Jobs
• Work
• Absenteeism
• Employment turnover
• Productivity
• Human performance
• Management
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 Contributing Disciplines
to the OB Field
Micro:
The
Individual

Macro:
Groups &
Organizations

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Inc.
Levels of OB Analysis

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Inc.
 Individual Level Analysis
1. Individuals working in organization are the buliding blocks for
grup formation.
2. Their individual differences make their behaviour complex.
Their individual differences arises from ;
1. Motivation
2. Perception
3. Personality
4. Attitude
5. Values
6. Feelings
7. Learning
8. Memory
3. OB endeavors to understand people on individual basis

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Individual differences may arise from

Secondary
Primary Dimensions Secondary
Dimensions
Marital Education Dimensions
Inborn
Religious Acquired or
difference - Status
Primary Beliefs changed
Have an
Dimensions throughout
impact
one’s lifetime
throughout Age
Gender Ethnicity Have less
one’s life Military
Parental Person Sexual impact – still
Status Physical Experience impact self
Ability Orientation definition
Race

Work Geographic
Background Location
Income

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 Group level / Team Level Analysis
1. In organization people work either in group or in teams.
Group is simply the collection of two or more individuals,
interacting and interdependent who have come together to
achieve particular objectives. Groups can be formal or
informal.
2. This level of analysis consists of understanding group
dynamics, decisions, power, organization politics, conflict,
leadership, and communication.

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 Organizational level analysis
An organization is a consciously coordinated (management) social
unit (people working together), composed of tow or more people
that function on a relatively continuous basis to achieve a
common goal or set of goals.
•Overall organizational culture, culture, power politics, change
and development etc. are considered in this level of analysis.

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