ORGANIZATIONAL BEHAVIOUR

The Dynamics of people and organizations

A primary goal of management education is to

develop students into managers who can think
ahead, exercise good judgment, make ethical
decisions, and take into consideration the
implications of their proposed actions
– Jane Schmidt-Wilk
Premises
 
• Organizations are complex systems.
– Need to understand how the system operates esp. in a sociotechnical system – humanity
and technology.
• Human behavior in organizations is sometimes unpredictable
– Behaviors may come from deep-seated needs, lifetime experiences and personal value
systems
• Human behavior in a organization can be partially understood
– Applying the frameworks of behavioral science, management and other disciplines.
• There are no perfect solutions to organizational problems
– Increase the understanding and skills – work relationships can substantially upgraded
• We do not have the luxury of not working with or relate to other people.
– Learn human behavior.
– Explore how to improve he interpersonal skills
– Begin to mange ones relationships with others at work.
ORGANISATIONAL BEHAVIOR
• Organizational Behavior is a discipline that deals with the study and
application of knowledge about how people as individual and as group act
within organizations.
 ORGANISATIONAL BEHAVIOUR - DEFINITON

• “Organizational behaviour is a field of study that investigates the impact

that individuals, groups and organizational structure have on behaviour
within the organization, for the purpose of applying such knowledge
towards improving an organizational effectiveness”.

--Stephen P Robins
• “Organisational behavior is to understand, predicting and controlling
human behavior at work”
-- Fred Luthans
 Understanding human behavior
• Definition
• OB
– systematic study and careful application of knowledge about how
people – as individuals and as groups – act within organizations.
– Strive to identify ways in which people can act more efficiently
– A large number of research studies and conceptual
developments constantly adds up to its knowledge base.
– An applied science
– Provides useful set of tools at many levels of analysis from
individual, interpersonal relations, intergroup,and whole system
 GOALS OF OB

• Describe People Behavior

• Understand People Behavior

• Predict Employee Behavior

• Control Human Activity

 Goals of OB
– Describe
• how people behave under a variety of conditions.
– Understand
• Why people behave behave as they do.
• Probe for underlying explanations
– Predict
• Predict future employee behavior (tardiness, productive &
unproductive etc.)
• Provide preventive actions
– Control
• At least partially and develop some human activity at work.
Managers need to remember that organizational behavior is
a tool for human benefit
 Contributing Disciplines to the OB Field

• Psychology
• Sociology
• Social Psychology
• Anthropology
• Political Science
Contribution towards an OB
Discipline
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
 Fundamental Concepts of OB
Nature of people
•Individual differences
–Nature vs.nurture
•Perception
–The unique way in which each person sees, organizes and interprets things.
–Selective perception cause misinterpretation
•A whole person
–We employ the whole person not just their brains or skills
–Ergonomics is the science of fitting workplace conditions and job demands to the
capabilities of the working population
•Motivated behavior
–A path towards increased need fulfillment is a better approach
•Desire for involvement
–Hunger for a change to chare what they know and to learn from the experience.
–Organizations need to provide opportunities for meaningful involvement – employee
empowerment
•Value of the person
–Worth before the word
–meal before the message
–they want to be treated differently from other factors of production
 Nature of organization
• Social systems
– or social structure in general refer to entities or groups in definite relation
to each other, to relatively enduring patterns of behavior and relationship
within social systems, or to social institutions and norms becoming
embedded into social systems in such a way that they shape the behavior of
actors within those social systems. Social systems can be said to be the
patterns of behavior of a group of people possessing similar characteristics
due to their existence in same society.
– Formal and informal social systems
– The idea of a social system provides a framework for analyzing
organizational behavior issues. It helps make OB problems understandable
and manageable
• Mutual interest
– Symbiotic relationship between organizations and people
– Provides a superordinate goal – one that can attained only through the
integral effort of individuals and their employers.
• Ethics
– Treatment of employees in an ethical fashion
– Establish code of ethics, publicized statements of wthical values, provide
ethics trainings, reward employees for notable ethical behaviors, set up
internal procedure to handle misconduct.
 Importance of OB
• Understanding of self and others

-- Individual Behavior
-- Inter-Personal Behavior
-- Group Behavior
• Motivation of Human Resources
• Effective Communication (behavioral science helps to improve communication)

• Effective Organizational Climate

• Good Human Relations
• Introduction of change in the organization (benefits of change should be
highlighted)
 Why - Organizational Behavior (OB)
20
• The attitudes and behaviors of individuals and groups in organizations

Why study OB?

 To learn about yourself and others
 Help you to retain the people who came up with the good ideas

 Solve new problems and adapt to new situations

 OB focuses on improving productivity, reducing absenteeism and
turnover, and increasing employee job satisfaction and organizational
commitment
 OB studies how people behave, the reasons for that behaviour and how
the behaviour affects the performance of the organisation
 Contd..
• Predicts the future course of action

• Control the activity

• It motivates employees towards higher productivity
Why Study Organizational Behavior
Understand
organizational
events

Why study
Influence organizational Predict
organizational behavior organizational
events events
Key forces/Elements – complex set of forces affects the
nature of organizations
 Elements of OB
• People
• Structure (formal and informal system)
• Technology (cost as well as benefits)
• Environment (no organisation exists alone)
 Key Forces/ Elements of OB
• People
• Make up the internal social system of an organization
• Melting pot of diversity – talents, background and perspectives to their jobs
• Managers need to be tuned in to these diverse patterns and trends.
– Changes in the labor force
» Decline in work ethic and rise in emphasis on leisure, self
expression, fulfillment and personal growth
» Decreased automatic acceptance of authority and increase in the
desire for participation, autonomy and control.
» Skills become obsolete due to rapid technological advances –
retrain or be displaced
» Security needs are prime concern and loyalty diminishes because
of downsizing and outsourcing
» Absence of meaningful salary growth has placed renewed
emphasis on money as a motivator
• Companies address diversity by becoming compassionate and caring,
building pride without de-valuing others, empowering some without
exploiting, demonstrating openness, confidence, authentic compassion and
vulnerability.
• Structure
• Defines the formal relationship and use of people in organizations.
• Effective coordination of work
• Create complex problems of cooperation, negotiation and decision making
• Technology
• Provides the resources with which people work and affects the tasks they
perform
• Benefit of technology – does more and better work however it restricts people in
various ways
• OB’s challenge is to maintain the delicate balance between technical and social
systems.
• Environment
• Internal or external
• Organizations are part of a larger system and factors influence them like:
– Citizens expect organizations to be socially responsible
– New products and competition for customers come from around the globe
(globalization)
– The direct impact of unions diminishes
– Dramatic pace of change in society.
• The external environment influences the attitudes of people, affects working
conditions, and provides competitions for resources and power.
 Nature of OB

• An Integral Part of Management

• A Field of Study
• Inter-Disciplinary Approach
• Levels of Analysis (behavior)
• Goal-Oriented
• Human Tool
• Science and Art
• Satisfaction of Employees’ Needs
• Humanistic and optimistic
• Oriented towards Organizational Objective
 Framework for OB
• OB follows the Principles of Human Behavior

• OB is situational
• OB is based on System Approach

• OB represents a constant interaction between structure and process

variable
 Scope of OB
• Individuals (differ from personality, perception, values and attitude)
• Group of Individuals (group conflicts, communication, structure, power
and politics)
• Organisation Structure
 Scope of OB

The scope of organizational behaviour:

Elements of the Organizational Behaviour
People, structure, technology and the external environment are the key elements of
the organizational behaviour. First three elements are micro-level and last one is
macro level. These elements can be undertaken as a part of the OB scope.
Understanding people is not sufficient and hence OB extends its scope to structure,
technology and the environment also.
Impact of personality on performance
It’s also essential to understand the impact of personality of an employee or other
members of the team on performance.
The motivation of employees of organization:
The study helps to understand employee behaviour. This helps to understand what
kind of Monetary & Non-Monetory benefits will help to motivate employees and to
create a positive attitude.
 Scope of OB
Other important points under the scope of OB are:
•  Leadership
•  Structure of teams and groups
•  Perception
• Development of the Soft Skills
•  Organizational structures: Their Study and Development
•  Improvement/Enhancement of Individual & Organizational development
•  Individual behaviour, Group behaviour, power and politics, attitude and
learning
•  Organization Design
•  Job design
•  Culture and Environment factors
•  Management of change, conflict and stress
•  Organizational development
•  Study of emotions
•  Transactional analysis
This is the scope of Organizational behaviour. In the current scenario,
Organizational Behaviour i.e. behaviour of employees in an organization is
becoming the main thing for organization management.
Models of Organizational Behavior
• Autocratic Model
• Custodial Model
• Supportive Model
• Collegial Model
 Autocratic Model
• Managerial orientation is towards power

• Manager see authority means get the things done

• Employees expected to follow

• High dependence on boss

• Under autocratic model, employees usually give minimum performance
and in turn get minimum wages
• This model is largely based on Theory X Assumption
 Custodial Model
• Employees managed under autocratic model feel insecurity and stress
• The manager felt some way to develop employee relationships
• The managerial orientation is towards the use of money to pay benefits
• Employees hope to obtain security and benefits
• Organisational dependence
• Since employees are getting adequate rewards and security, they are happy
• Family-managed business organisation
• Not suitable for matured employees
 Supportive Model
• The model depends on Leadership

• Supports Employee Job Performance

• The focus in primarily on participation and involvement of employees in
decision making
• Creates Sense of Participation
• Manager’s role is to help employees to achieve their work rather than supervision

• Manager is a coach builds a better team

• Assumption of Theory Y
• Organisation with sophisticated technology and professional people can apply
this model
 Collegial Model
• Collegial model is an extension of supportive model
• It is based on team concept
• Employee develops high degree of understanding
• Shares common goals
• Employees need little direction and control from management
• Creates Favorable Working Climate
• Fulfillment of Employees