Chapter 01 - Introduction To OB

Introduction to Organization
Behaviour
Chapter -1.
The Role Of Organizational Behaviour:
• OB helps firms to achieve effectiveness in their activities.
• Organizations, as stated earlier, comprise people and OB helps in utilizing
these resources for achieving organizational effectiveness.
• The people working in organizations are generally possessing some physical
strength, skill of some kind, and organizing abilities.
• OB is actually helping to blend all the activities and using these for achieving
the organizational effectiveness.
Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 2

Definition and Meaning of OB:
• “OB refers to the behaviour of individuals an groups within organizations
and the interactions between organizational members and their external
environments”
• “ OB is a field of study that investigates the impact that individuals,
groups and structure have on behaviour within organizations for the
purpose of applying such knowledge towards improving an
organization’s effectiveness.
• The definition on OB are many. However, three features need to be
emphasized in any definition:
i. OB is the study of Human Behaviour
ii. The study is about behaviour in organizations
iii. Knowledge about human behaviour would be useful in improving an organization’s
effectiveness.
Foundations Of OB:
• Individual Differences
• Whole Person
• Caused Behaviour
• Human Dignity
• Orgn. As Social Systems
• Mutuality of Interests
• Holistic Approach
• Need for Management.

Individual Differences : A Whole Person:
• People have much in common, but • When he/she gets appointed, and
each person is individually when they entered into the
different. organization, every single and
• That could be intelligence, minor activities related to them will
physique, personality, etc., enters into the organization as well.
• The organization can use these • We cannot separate the person
unique characteristic to motivate from his/her personal life from
the employees differently to get the professional life.
desired work done by the • Here, in organization they strive to
employee. be not only a good employee but
• A group is powerless, if individual overall a good human being
are not there to act or to make it through various training and
alive. development sessions.
Caused Behviour: Human Dignity:
• Always remember that the • This concept is more ethical
behaviour of the employee is always rather than just a scientific
a caused one, and not at random. method.
• This can may be because of what • As per this concept the
employees are believing completely employees are not merely a
right and wrong.
factor of production, but it is
• So whenever, such problem arise by more and far important than rest
employee, the managers should first factors of production.
deeply move to the roots of the
problem, analyze the behaviour of
• In short, while working in
the employee and then to he could organization, every employee
give the decision. should be treated as per the their
dignity in the organization.
Organization as Social System: Mutuality of Interest:
• Organizations are system implying • “Organization needs people, and
that their activities are governed people also need organizations.”
by social and psychological laws. • Organization have some human
• The existing of social system in purpose, they are therefore
organization also proves that its being formed accordingly, on the
environment is dynamically basis of some mutual interest.
changes, rather than a static set of • On the other hand, employee are
relations are revealed in any also treating the organization as
the mean to fulfill their own goal.
organization chart.
• Mutual interest provides a
subordinate goal that unties the
variety of need of that people
bring to organization.
Holistic Concept: Need for management:
• The combination of above all six • During may survey or researches it was
proved that the more reflection on the
concept, give birth to the concept concept OB will lead to organizational
of Holistic Concept. effectiveness.
• This is the concept which means • The question is: “who should use the
that people organization knowledge about OB for organizational
relationships are expressed in effectiveness?”
• The answer comes that the people who
terms of whole person, whole
plan, organize, lead and do control whole
group, whole organization, and the organization : MANAGEMENT.
whole social system. • Management deals with 4 major aspects:
• Issues of all are analyzed into – Planning
details not just as an run time – Organizing
– Leading
problem and find out the solutions
– Controlling.
on temporary basis.
Contemporary OB:
The Major Disciplines are:
1. PSYCHOLOGY
2. SOCIOLOGY
3. SOCIAL PSYCHOLOGY
4. ANTHROPOLOGY
5. POLITICAL SCIENCE.

The various study contributions are:
Psychology:
 Psychology is the science that seeks to measure, explain, and
sometimes change the behaviour of humans and other animals.
 To use psychological and organizational theory and research to
improve organizational effectiveness and the work life of all
individuals.
 Psychologists concern themselves with studying and attempting to
understand individual behaviour.
 Learning, perception, personality, emotions, training, leadership
effectiveness, needs and motivational forces, job satisfaction, decision-
making process, performance appraisals, attitude measurement,
employee selection techniques, work design and job stress
SOCIOLOGY :
 Sociologists study the social system in which individuals fill their
roles
 Sociology studies people in relation to their fellow human
beings to improve organizational performance.
 Study of group behaviour in organisations, group dynamics,
design of work teams, organisational culture, formal
organisational theory and structure, organisational technology,
communications, power and conflict

Social Psychology :
 An area within psychology that blends concepts from
psychology and sociology and that focuses on the influence
of people on one another.
 Major area: change – how to implement it and how to
reduce barriers to its acceptance
 Study areas: measuring, understanding and changing
attitudes, communication patters, building trust, the ways
in which group activities can satisfy individual needs, group
decision-making processes
Anthropology:
(Meaning : Anthropology is the study of various aspects
of humans within past and present societies.)
 The study of societies to learn about human beings and
their activities.
 Study on culture and environment has helped us
understand differences in fundamental values, attitudes,
and behaviour between people in different countries and
within different organisations

Political science:
 The study of the behaviour of individuals and groups within
a political environment
 Study areas: structuring of conflicts, allocations of power,
how people manipulate power for individual self-interest

Characteristic of OB:
• Integral Part of Management
•
O •
Field of Study
Inter - disciplinary Approach
B • Analysis of Behaviour
• Goal Oriented
• Human Tool
O •
•
Science & Art
Fulfillment of employees' Needs
B
• Humanistic and Optimistic
O • Oriented towards Organizational Objectives.

• Total System Approaches
B
Models of OB:
Supportive Autocratic
Model Model
Custodial Collegial
model model

Autocratic Model
• “Might is Right” is the motto of this theory. It depends upon
power. Those who are in command must have power to
demand.
• Greek Word : Autocratic – Auto ( self) and Cratic ( rule)
• Main features are:
i. Only management decides right or wrong
ii. Obedient orientation of employees
iii. Useful approach.
Custodial Model
• Workers being managed under the autocratic model often feel
insecurity and frustration. They may even show aggression
towards their boss and their families and neighbors.
i. Employee dependence on organization
ii. Emphasizes rewards
iii. Promotes employee satisfaction.

Supportive Model
• The basic idea behind this theory is that leadership motivates
the people to work and not the power of money as in Custodial
Model.
i. Supports employee job performance
ii. Management’s lifestyle reflects supports
iii. Creates sense of Participation
iv. Limited Application.

Collegial Model
• A useful extension of the supportive model is the Collegial
Model. The Collegial relates to a person or body of person having
a common purpose. The collegial model, which embodies a team
concept, is based on principle of mutual contribution by
employer and employees.
i. Creates Favourable Working Climate.
ii. Foster Teamwork
iii. Fulfillment of Employees.
Model of OB  Autocratic Model Custodial Model Supportive Model Collegial Model
Points of Differences
1. Basic of Model Power Economic Resources Leadership Partnership
2. Managerial
Authority Money Support Team work
orientations
3. Employee
Obedience Security Job Performance Responsibility
Orientations
4. Employee Dependence on
Dependence on Boss Participation Self- discipline
Psychological result Organization
5. Employee Needs Status and

Subsistence Maintenance Self – Actualization
Met recognition
6. Performance Moderate
Minimum Passive cooperation Awakened drivers
Result Enthusiasm

Approaches of OB:
Human
Resources Contingency
(Supportive) Approach
Approach
Result –
Systems
Oriented
Approach
Approach

Human Resources (Supportive) Approach:
• It is concerned with the developmental approach of Humans
engaged in organization.
• As we know that humans are the main assets of the
organization as well as they are the centre of society.
• This approach is concerned with growth and development
towards higher levels of competency, creativity, and fulfillment
of their goals.

Contingency Approach:
• This approach is more likely as inter – disciplinary approach,
more system oriented and more research oriented than the
traditional one.
• This approaches allows the managers to use their best current
knowledge about the people in organization.
• Traditionally approach was like searching for principle to provide
on best way of working.
• While this approach deals with: to organize, to delegate and to
divide work.
Result – Oriented Approach:
• All organizations need to achieve some relevant outcomes, or
results. A dominant goal for many is to be productive, so this
results orientation is a common thread woven through OB.
• Productivity is simple a ration between units of output with
units of input, against a predetermined standards.
• If more outputs can be produced in same input, productivity
increase, and vice – versa.

System Approach:
• Treating an organization as a system is critically important to its
access. The fundamentals elements of the systems approach
include:
1. there are many variables in system
2. many sub-systems in large system
3. system can produce positive and negative outcomes
4. the consequences of system may be long – term or may be
short – term.
(Contd…)
• An organizational system receives four kinds of inputs from its
environments:
• Material Inputs
Processing • Products/services
• Human Inputs • Employee behaviours
• Transformation
• Financial Inputs • Profits/losses
• Informational Inputs • Additional
information.
Inputs Outputs

Thank you.

Chapter 01 - Introduction To OB

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Introduction to Organization

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 2

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 4

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 9

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 11

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 13

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 14

O • Oriented towards Organizational Objectives.

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 16

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 18

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 19

1. Basic of Model Power Economic Resources Leadership Partnership

5. Employee Needs Status and

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 21

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 22

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 23

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 25

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 27

Prepared by: Asst. Prof. Hiral Vora/MBA/ NGI 28

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