OVERVIEW OF

ORGANIZATIONAL BEHAVIOR
Learning Objectives
Discussthe Concept of Organizational
Behavior
Understand the definition of Human
Behavior in the Organization
Key Concepts:

 Human Behavior
 Organization
What is Human Behavior
 Refersto the potential and expressed capacity for physical,
mental, and social activity during the phases of human life.
 Refers to the activities that human beings posseses which is
influenced by factors such as thoughts, feelings, emotions,
culture attitude, Values, ethic, and authority.
 Refers to the physical action of person that can be seen or heard.
(Ex: smiling, crying, Talking, Thingking, etc)
 refers to the way humans act and interact.
 What is Organization?
 An organization is a collection or group of people who
work together to achieve individual and organizational
goal like a neighborhood association, a charity, a union, or
a corporation. You can use the word organization to refer
to group or business, or to the act of forming or
establishing something.,
 A consciously coordinated social unit, composed of two or
more people, that functions on a relatively continuous
basis to achieve a common goal or set of goals.
What is Organizational Behavior?
Organizational behaviour (OB) is defined as the
systematic study and application of knowledge about
how individuals and groups act within the organizations
where they work. 
Refers to the Actions and attitudes of individuals and
groups toward one another and toward the organization
as a whole and its effect on the organizations
functioning and performance
What Are the Goals of Organizational
Behavior (OB)
 Describe how people behave under various
conditions
 Understand why people behave as they do and
probe for underlying explanations
 Predictfuture employee behaviour ( Tardiness,
productive and unproductive etc.)
 Controlat least partially and develop some
human activity at work.
Levels of Analysis

Organization

Group

Individual
COMPONENTS OF ORGANIZATIONAL
BEHAVIOR
Understanding
organizational behaviour
requires studying

Individuals in
organization

Group and Team Processes

Organizational Process
Significance of Studying Organizational
Behavior
 Develop Skill to Function effectively in a work
place.
 Growpersonally through insight into human
behaviour.
 Enhance overall organizational effectiveness
 Sharpen and refine common sense
Fundamental Concepts of  Organizational Behavior

Nature of People
 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.
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.  
 Caused  behavior  indicates that when an individual
behaves in an unmannerly fashion then there is a cause
behind it. Anything could be the reason of this cause such
as personal problems at home within the family, or
problems with coming early to the office etc.
 Human dignity indicates that every individual needs to be
treated differently. 
 Organisationsare social systems indicates that from
sociology we know that organisations are social systems;
therefore the activities within the organisations are
governed by social and psychological laws. 
 Mutuality of interest indicates that both the
organisation and people need each other.
Organisations are formed and maintained on the
basis of some mutuality of interest among the
participants.
 Holisticconcept indicates that when all the
above six concepts of organisational behavior are
placed together a holistic concept arises. 
Forces that affects the Organizational
Behavior
 People
People make up the internal social system of the organization.
That system consists of individuals and groups and groups may
be large and small, formal and informal. Groups are dynamic.
Group form, change and disband. Since the organization is a
combination of a group of people. Managers must handle the
people in the right direction. This is very challenging to guide
people or employees who have different educational
backgrounds, talent, and perspectives. So managers must
understand predict and control the people. They build up a
relationship with the employees and motivate themselves.
 Structure
The structure defines the formal relationship and use
of people in the organization. There are managers and
employees, accounts assemblers in order to accomplish
different kind activities. They are related in a
structural way so that their work can be effectively
coordinated. Because there is no organization can be
successful without proper coordination.
 Technology
Technology provides the resources with which people
work. They cannot accomplish work with their bare
hands. The great benefit of technology is that it
allows people to do more and better work. But it also
restricts people in various ways. It has cost as well as
benefits. If any person has lack of technological
knowledge he/she cannot work. Moreover, technology
decrease per unit cost and improve quality of the
products and services.
 Environment
All organizations operate within an internal and an
external environment. A single organization does not
exist alone. An organization is a part of a larger
system that contains many other elements, such as
government, family, and other organizations. Any
kinds of change in the environment affect the
organization. Citizens expect organizations should be
socially responsible. There is a direct impact of
several tread unions of organizations.
Key Developments in OB History
The Human Relations Movement
Based on that managerial practices, morale, and
productivity are strongly linked and that the proper
working environment enhances worker capabilities.

Douglas McGregor
-Theory X
-Managers assume people dislike work, avoid
responsibility, lack ambition, and need close
supervision.
 Theory Y
 Managers assume people enjoy, work, accept
responsibility, are innovative, and are self-controlling.

The Hawthorne Studies at Western Electric

 Originally intended as a study of the effects of
environmental changes on productivity.
 The Hawthorne Effect- the tendency of people to behave
differently (perform better) when they receive attention
Contingency Approach

 Emphasizes that there is no