MB20101-ORGANISATIONAL

BEHAVIOR AND DESIGN

Dr.S.Catherine,
Asst.Professor
Department of Management Studies
 UNIT I – Focus and Purpose
• Definition, need and importance of organizational
behaviour – Nature and scope – Frame work –
Organizational behaviour models- Disciplines that
contribute to OB field - Challenges and opportunities
for OB.
Organizational Behavior - Definitions
• According to L. M. Prasad, “Organizational behavior can be defined as
the study and application of knowledge about human behavior related
to other elements of an organization such as structure, technology and
social systems.”
 
• In words of K Aswathappa, “OB is the study of human behaviour in
organisational setting, of the interface between human behaviour and
organisation and of the organisation itself.”
 
• In words of Stephen P. Robbins, “OB is a field of study that investigates
the impact that individuals, groups and structures have on behaviour
within organisations for the purpose of applying such knowledge
towards improving an organisation’s effectiveness.”
 
 ORGNISATIONAL BEHAVIOUR – CONCEPTS
• Organizational Behavior is field of study that investigates the impact that individuals,
groups and structure have on behavior within organization.
• It is the study and application of knowledge about how people act within organizations.
• It is a human tool for human benefit. It applies broadly to the behavior of people in all
types of organizations, such as business, government, schools and services organizations.
• It covers three determinants of behavior in organizations: individuals, groups, and
structure.
• OB is an applied field. It applies the knowledge gained about individuals, and the effect
of structure on behavior, in order to make organizations work more effectively.
• OB covers the core topics of motivation, leadership behavior and power, interpersonal
communication, group structure and process, learning, attitude development and
perception, change process, conflict, job design and work stress.
 Organization & Management
• Organization: Organization as a purposeful system with several
subsystems where individuals and activities are organized to achieve
certain predetermined goals through division of labor and coordination of
activities. Division of labor refers to how the work is divided among the
employees and coordination refers to how all the various activities
performed by the individuals are integrated or brought together to
accomplish the goals of the organization.
• Management: It refers to the functional process of accomplishing the goals
of the organization through the help of others. A manager is an individual
who is given the responsibility for achieving the goals assigned to him or
her as part of the overall goals of the organization and who is expected to
get the job done.
 Organizational Behavior – Evolution
• Robert Owen, a factory owner in Wales was the first person, who realised
the needs of workers in his factory. He is sometimes referred to as the
forerunner of Personnel Management.
• The actual development of OB started from 1900 AD.
• The period witnessed scientific management of F.W. Taylor. Taylor
advocated that improved working conditions can increase productivity.
• It was during the First World War that ‘Human relation movement’ really
got a significant support from the American Management Association,
which took keen interest in the human factor in industry. This paved the
way for the organisation for well-known conference in New York in 1918.
• In the year 1920, the book of Williams had awakened thinking among the
entrepreneurs and the intellectuals all over the world about importance of
human relations in industry.
• Elton Mayo and Roethlisberger of Harvard University stressed the
importance of “Human behaviour at work places.” Their famous experiment
of Hawthorne Electric Company helped in understanding the basic idea of
social System within the working environment and the human problems to
be solved by understanding in human factor at work.
• The contemporary organizational behavior, by and large, became a full-
fledged subject (Social Discipline) by the end of 1950 in the management
field.
• OB has contributed to management through its principles like
setting of the goal in organisations, measures for assessing
performance like MBO in performance appraisal, etc.
• In these fields, the contributions of Peter Drucker and Mc Gregor
are worth mentioning.
• The ethical or human conduct in organization improved
remarkably after the Hawthorne experiment.
• Milgrams Obedience to Authority Study and the Management
Trust (MBT) by R.S. Dwivedi are of immense value to Human
Behaviour Studies.
 Organizational Behavior – Roles

• Understanding Human Behavior

• Controlling and Directing Behavior

• Organizational Adaptation
 Understanding Human Behaviour:
(a) Individual Level:
1. Psychological
2. Social
3. Cultural
(b) Interpersonal Level:
i. Reciprocal relationship
ii. Role analysis and
iii. Transactional Analysis
(c) Group Level:
i. Norms
ii. Cohesion
iii. Goals
iv. Procedures
v. Communication pattern
vi. Leadership and
vii. Membership
 Understanding Human Behaviour…
(d) Intergroup Level
i. Interaction
ii. Rotation of members among groups
iii. Avoidance of win-lose situation
iv. Focus on total group objectives
2. Controlling and Directing Behaviour:
(a) Use of Power and Sanction
(b) Leadership
(c) Communication
(d) Organisational Climate
 Understanding Human Behaviour…
• 3. Organisational Adaptation:
i. Organisations, as dynamic entities, are characterised by
pervasive change.
ii. Organisations have to adapt themselves to the envi­ronmental
changes by making suitable internal arrange­ment.
iii. Managers have to face dual problems- Identifying need for
change and then implementing the changes without adversely
affecting the need for satisfaction of organisational people.
 Organizational Behavior-Main Principles:
• Organisational behaviour is based mainly on two main principles:
1. Nature of the people
2. Nature of the organisation.
• 1. Nature of the People:
(i) Individual differences,
(ii) Whole person,
(iii) Caused behaviour, and
(iv) Human dignity.
• 2. Nature of Organisation:
(i) Social system.
(ii) Mutual interests.
 Key Elements of Organizational
Behavior
• People
• Structure
• Technology
• Environment
When people join together in a organization to accomplish
an objective, some kind of infrastructure is required. People
also use technology to help get the job done, so there is an
interaction of people, structure and technology. In addition,
these elements are influenced by the external environment,
and they influence it.
 Key Elements of Organizational Behavior
• People
– Individual employee who are expected to perform the tasks
allotted to them
– Dyadic relationships such as superior-subordinate
interactions
– Groups who work as teams and have the responsibility for
getting the job done,
– People outside the organization system such as customers
and government officials
 Key Elements of Organizational Behavior
• Structure
Structure defines the official relationships of people in
organizations
• key concepts of organization structure are listed as below:
 Hierarchy of Authority
 Division of Labor
 Span of Control
 Specialization
 Standardization
 Formalization
 Centralization
 Complexity
 Key Elements of Organizational Behavior…
Structure of the organizations can range on a continuum of high rigidity to
high flexibility. There are two broad categories of organization:
• i)Mechanistic form of organization
•ii)Organic form of Organization
Jobs and Tasks
Core Job Characteristics
Task Variety
Task Identity
Task significance
Autonomy
Feedback from the Job itself
Job Design
 Key Elements of Organizational Behavior…
 Technology
Classification of Technology
Long linked Technology
Mediating Technology
Intensive Technology
 Environment
Two Distinct Sets of Environment:
Specific Environment
General Environment
 Basic Approaches of Organizational Behavior
 
• An Interdisciplinary Approach

• Scientific Management Approach

• A Human Resources (Supportive) Approach

• A Contingency Approach

• A Systems Approach
 Objectives of organisational behaviour:
• (i) To analyse different perspective and potentialities to create and develop
the ethical values in an organisation,
• (ii) To analyse the potentialities towards the ways and means to conduct
and organise the systems, methods and approaches for organisation
development in an organisation,
• (iii) To analyse the potentialities to develop process, methods and
approaches of formal and informal patterns of organisation and society,
• (iv) To analyse how to make perspective methods and process of effective
communication to formulate ethical norms in an organisation,
• (v) To analyse various aspects and factors affecting the group cohesiveness.
 Objectives of organisational behaviour:
• (vi) To analyse the ways and means to develop different ethical aspects
for group dynamism,
• (vii) To analyse the mutual interest of individual and group. Mutual
interest is represented by the statement ‘Organisation needs people, and
people also need organisation’,
• (viii) To analyse and evaluate the role of different key elements like
people, structure, technology interactive behaviour and environment etc.
• (ix) To analyse and evaluate the behavioural approaches in organisation.
In context of that all of them are based on ‘Art’ and ‘Science’,
• (x) To analyze different aspects of work environment which duly affects
the behavioral patterns and attitudes of persons?
Scope of Organizational Behaviour
 Nature of organizational behaviour
• 1. A Separate Field of Study and Not a
Discipline Only
• 2. An Interdisciplinary Approach
• 3. An Applied Science
• 4. A Normative Science
• 5. A Humanistic and Optimistic Approach
• 6 A Total System Approach
 Characteristics of Organisational
Behaviour:
• 1. Behavioural Approach to Management
• 2. Cause and Effect Relationship
• 3. Organisational Behaviour is a Branch of Social Sciences
• 4. Three Levels of Analysis
• 5. A Science as well as an Art
• 6. A Body of Theory, Research and Application
• 7. Beneficial to both Organisation and Individuals
• 8. Rational Thinking
CHALLENGES OF ORGANIZATIONAL BEHAVIOR

• 1. Globalization
• 2. Management of Workforce Diversity
• 3. Improvement in Quality and Productivity
• 4. Improvement in People Skills
• 5. Incorporation of Innovation
• 6. Incorporation of Work-Life Balance
 Challenges and Opportunities for Organizational Behavior
• Environmental Challenges
• Improving People's Skills
• Improving Quality and Productivity
The key dimensions of quality are:
1. Performance 
2. Features
3. Conformance
4. Reliability
5. Durability
6. Services
7. Response
8. Aesthetics
9. Reputation
 Challenges and Opportunities for Organizational
Behavior

• Responding to Globalization
Diversified workforce
Understanding culture of local people 
• Empowering People
• Coping with Temporariness
• Stimulating Innovation and Change
 DEFINITION OF ORGANIZATIONAL BEHAVIOUR

1.  "Organizational behaviour is a field of study that investigates the

impact that individuals, groups and structure have on behaviour
within organization for the purpose of applying such knowledge
toward improving an organization's effectiveness."
- Stephen P. Robbins.
2. “Organizational behaviour is the study and application of knowledge
about how people - as individuals and as groups behave or act in
organizations. It strives to identify ways in which people can act
more effectively”
3.“The study of human behaviour in organizational settings, the interface
between human behaviour and the organizational context, and the
organization itself”

4.“Organizational behaviour is directly concerned with the

understanding, prediction,(behaving or occurring in the way
expected) and control of human behaviour in organizations”
 NEED TO STUDY ORGANIZATIONAL BEHAVIOUR

• To secure better labour- management

relationships
• To identify individual differences
• To overcome resistance
• To understand group behaviour
• To achieve goal
• To manage conflicts
• To introduce change
 NATURE OF ORGANIZATIONAL BEHAVIOUR

1. It focuses on the behaviour of individuals

(studies why people in the workplace behave in a particular
way)

2. It is inter- disciplinary (It studies relevant things from

science subjects psychology, sociology and anthropology)
• Psychology- The study of the human mind
• Sociology- The study of the human society
• Anthropology-The study of the human cultures

3. It is an applied science (makes use of research

findings to solve organisational problems relating to human
behavioural aspects)
4.It is an art as well (not only science, even skills are also
important to understand human behaviour)

5.It adopts a humanistic approach ( fulfilling the

needs of the individuals i.e. support and involvement)

6.Its ultimate aim is to attain the organisational

objective (by having positive human behaviour the objectives
are achieved)

7. A total systems approach (systems approach tries to

find solutions for the variables affecting organisational functions)
 CHARACTERISTICS OF OB
• Accepted as science , not a full fledged discipline.

• OB is a value centered normative science and not a

positive science, which explains cause effect
relationship.

• OB focus on humanitarian aspects and believes that

people’s needs are to be attended to and that
motivating people can result in peak performance of
the organization.
• OB is objective oriented.
• It draws ideas and knowledge from different
disciplines like psychology, sociology and
anthropology, economics, political science,
law and history.
• Replaces intuition with systematic study.
• Various findings of the research are applied to
solve the organizational problems with respect
to human behaviour.
FRAME WORK OF ORGANIZATIONAL BEHAVIOUR (OR)
PROCESS

• Organisational behaviour can be the behaviour of the members

of the oganisation towards each other, towards the
organisation, towards the customers or clients, & towards the
society at large.
• It contains 3 levels of managers.
a. Top level managers ( TM )
b. Middle level managers ( MM )
c. Lower level managers (LM )
d. People ( P )
• The hierarchy ( things one above the other according to status)
of managers is indicated by the triangle within the overall
organizational framework.
 MODELS OF ORGANIZATIONAL BEHAVIOUR

• Autocratic
• Custodial
Au
• Supportive
• Collegial Co MODELS Cu

Su
1. Autocratic model
• Under autocratic model, the managers uses authority and
directs the subordinates to do work as per his specification.
• The subordinates are not given freedom to act. They have to
carry out the task faithfully as per their boss's instruction.
• The employees are made to work like machines.
• The use of such an approach may not always give the
manager the desired results. Employees physical & mental
health gets affected.
• Organisations may also begin to face behavioural problems
as a high rate of absenteeism, low morale ( feelings of
confident & satisfaction), high rate of labour turnover and
so on.
2. Custodial Model
• Employees has to depend on the organisation.
• The organisation takes care of all the need of the employees like
rent free accommodation, free education for his children, food
and so on.
• Under this approach the employee is happy as the organisation
satisfies his needs. But there will be no guarantee that his
performance level will be high.

3. Supportive Model
• The managers supports his subordinates in the performance of
their tasks.
• The focus here is managerial leadership.
• The manager does not make decision but involves his
subordinates in the decision making process.
• This model is suitable in those workplaces where the employees
are self motivated.
4. Collegial Model
• The managers and subordinates work as a team.
• The manager participates in the process of task performed
by subordinates.
• There is better interaction among team members.
• Every subordinate is able to be self disciplined.
 COMPARISON OF 4 MODELS OF ORGANISATIONAL
BEHAVIOUR

Autocratic Custodial Supportive Collegial

Basis of model Power Economic Leadership Partnership
resources
Managerial Authority Money Support Team work
orientation
Employee Obedience Security and Job Responsible
orientation benefits performance behaviour

Employee Dependence Dependence Participation Self-discipline

psychological on boss on
result organization
Employee Subsistence Security Status and Self-
needs met (Basic level) recognition actualisation
Performance Minimum Passive cooperation Awakened drives Moderate
(Accepting what (Perform well)
result happens )
enthusiasm
DISCIPLINES CONTRIBUTING TO ORGANISATIONAL BEHAVIOUR

Important disciplines contributing to OB are

a)Psychology-
The study of the human mind(mental characteristics)
b)Sociology-
The study of the human society(people)
c)Anthropology-
The study of the human cultures and practices in different
societies.
a) Psychology-
• Perception
• Learning
• Memory
• Attitude
• Opinion
• Capacity to judge
• Ability to make decisions

Knowledge of psychology provides the manager to influence

the employees positively towards the goals
b)Sociology-
• Sociology deals with the social behaviour of an
individual.
• An employee, for example may strike work not on his own
but due to union pressure.
• Knowledge of sociology helps the manager to tackle
group
behaviour effectively.
c)Anthropology-
It is a study of fundamental values and beliefs(trust), useful
in
understanding human behaviour.
 IMPORTANT CONCEPTS OF ORGANISATIONAL BEHAVIOUR

1. Individual differences
(people differ in their knowledge, attitude, intelligence,
capacity, skill, memory and so on)
2. Perception
3. The concept of whole person
(we mean that it is not the skill or the intelligence of the
individual alone is important for the growth of organisation,
mainly the personal life of individual helps to get the best out
of him)
4. Motivation
5. Involvement/ Empowerment
6. Dignity of labour (treated with respect)
7. Social system ( should work for a common goal)
8. Mutuality of interest ( it is the organisation that
satisfies the needs of the people, then there is mutuality
of interest)
 KEY ELEMENTS OF ORGANISATIONAL BEHAVIOUR

1. People
2. Structure
3. Technology
4. Environment

1. People
(people differ in their knowledge, attitude, intelligence, capacity,
skill, memory and so on) Managers should identify the individual
differences before assigning work.
2. Structure
Without structure it is difficult to secure effective co-
ordination of the departmental activities.

3. Technology
Uses of better technology enables the employees to work with
greater efficiency. This improves their satisfaction and
feelings.

4. Environment
Both internal and external environment also influences
working relationships.
 Industrial
Revolution

Scientific
Management

Human Relations
Movement
1.Great Depression
2.Labour Movement
3.Hawthorne Studies

Organizational Behaviour
APPROACHES IN ORGANISATIONAL BEHAVIOUR

1. Human resource or supportive approach

2. Situational or contingency approach
3. Productivity approach
4. System approach
1. Human resource or supportive approach
• It is concerned with growth & development of people
towards higher levels.
• It is supportive approach because managers primary role
change from control of the employees to achieve support of
their growth & performance.
• It helps an employee to become better, more responsible &
create a climate in which they can contribute to their
improved abilities.
2. Situational or contingency approach
• Ideas are suppose to apply in any type of situation.
• Situational approach are much complex may require different
behavioural pattern & practices for more effectiveness.
• It helps to use the most appropriate manner, all the current
knowledge about people in organisation.

3. Productivity approach
• Productivity is the ratio that compares the units of output with
units of input, better productivity is a valuable measure of how
well resources are used in society.
• Productivity often is measured in terms of economic inputs &
outputs but human inputs & outputs are also important. For
example better organisational behaviour can increase job
satisfaction( i.e. human output).
4. System approach
• A system implies that there are many variables in organisation.
Each of them affect all the other in a complex relationship( a
set of repressed feelings affecting behaviour) which appears to
affect one individual or department in the organisation.
• All people in organisation should be concerned with improving
organisational behaviour.
• Division of Labor: Adam Smith (1776)
• Scientific Management: Frederick W. Taylor (1911)
• Taylor based his scientific management on the following four principles:
■ Carefully study jobs to develop standard work practices. Standardize the
tools used by workers.
■ Select each worker scientifically.
■ Management and workers cooperate to ensure that work is done
according to standard procedures.
■ Management plans and makes task assignments; workers carry out
assigned tasks.
 Theory of Administration: Henri Fayol (1919)
•division of labor
• authority and responsibility
•Centralization
•Delegation of authority
•unity of command & unity of direction
• Bureaucracy: Max Weber (1922)
• Weber believed the following features account for the efficiency of
bureaucracies:
■ Clearly defined and specialized functions
■ Use of legal authority
■ Hierarchical form
■ Written rules and procedures
■ Technically trained bureaucrats
■ Appointment to positions based on technical expertise
■ Promotions based on technical competence
■ Clearly defined career path
• The Hawthorne Studies (1939) The Hawthorne Studies
were preceded and stimulated by the illumination experiments done in the
Hawthorne Plant in the early 1920s. These studies tried to determine whether
various lighting levels affected human productivity. The experimental design used
a control group that had no variation in lighting. An experimental group
experienced changes in light levels.
• Theory X and Theory Y: Douglas McGregor (1960):
• Douglas McGregor, an MIT psychologist, proposed two sets
of assumptions about human motivation that a manager can
hold.
• McGregor called the assumptions Theory X and Theory Y. A
manager’s behavior toward his workers and his management
style will differ based on the assumptions guiding his
behavior.
• The following are Theory X assumptions:
■ The average person dislikes working and will avoid it if possible.
■ Because people dislike working, they must be directed, tightly controlled,
and pressured to work toward organizational goals.
■ The average person wants security, avoids responsibility, and has little
ambition.
• The following are Theory Y assumptions:
■ The average person likes work; it is as natural as play.
■ A person who is committed to a set of goals will work toward
them without external control.
■ Goal commitment follows from the satisfaction of a person’s
desire to achieve.
■ The average person can learn to accept responsibility. Lack of
ambition is not a basic human characteristic.
■ Creativity, ingenuity, and imagination are human
characteristics that are widely dispersed in the population.
■ Modern organizations only partially use the worker
potentialities.
• McGregor believed that many managers held Theory X
assumptions about workers.
• Such managers give their workers little latitude,
supervise them closely, and punish poor performance.
They use few rewards and typically give only negative
feedback.
• Managers who hold Theory Y assumptions have a
positive view of people, believe they have much hidden
potential, and believe that people will work toward
organizational goals.
• These managers will give workers more job
responsibility and rely on self-motivation rather than
coercion.
• Management Guru: Peter F. Drucker (1995)
• Drucker urges managers to understand existing demographics,
spending patterns, societal structure, economic forces, and technological
changes to see what is shaping the future.
• His approach to planning focuses not on probabilistic future scenarios,
but on existing conditions that will unrelentingly shape that future.
Among his most lasting observations was his proposed philosophy of
management by objectives and self-control.
• General Electric was the first company to adopt management by
objectives (MBO) and put it into practice with Drucker’s help as a
consultant