Unit-1

Introduction

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 Unit-1: Introduction
• Concept of organizational behavior;
• Foundations of OB;
• Contextual perspective of OB: HR Approach,
Productivity Approach, Interactionalism Approach,
Contingency Approach, System Approach;
• Environmental context of OB - Globalization,
diversity and ethics;
• Theoretical Frameworks - Cognitive Framework,
Behavioristic Framework, Social cognitive framework

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By Brajesh Jha 3
By Brajesh Jha 4
By Brajesh Jha 5
 Theme:

“People are like

fingerprints,
unique in their
own ways.”

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The Organization

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By Brajesh Jha 8
By Brajesh Jha 9
 The Organization
• Mission
• Vision
• Goals
• Objectives

 What do you plan to achieve in the

next five years?

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Individual Goals
• You have to work hard to be good.
• When goal is easy, stretch.
• Be yourself, you are the best
contributor to who can make a
difference.
• Best way to change a habit is to be
determined.
• Learn from past mistakes and not
repeat them.
• You can make a difference, the
choice is entirely yours.
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 Traditional & Learning Organizations:
Functions Traditional Org. Learning Org.
Determination of The top mgmt. Shared vision
Overall provides vision. though teamwork.
Directions:
Idea Formulation Top mgmt. Takes place at all
& Implementation: decides what is to levels.
be done.
Nature of Org. Each person is Both individual
Thinking: responsible for and others job
one's individual with utmost care
job, duties, & for work inter-
needs. linkages.
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 Types of Organization:
Functions Traditional Org. Learning Org.
Conflict Use of power & Use of
Resolution: influence. collaborative
learning &
problem solving.
Leadership & Leader Leader builds a
Motivation: establishes org. shared vision,
vision, provides empowers the
rewards & personnel,
punishment, & inspires
maintains overall commitment &
control. encourages
teamwork.
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What Managers Do (Cont’d):

Managerial
ManagerialActivities
Activities
• •Make decisions
Make decisions
• •Allocate resources
Allocate resources
• •Direct activities of others to attain
Direct activities of others to attain
goals
goals
• •What else?
What else?

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Management Functions:

Planning
Planning Organizing
Organizing

Management
Management
Functions
Functions

Controlling
Controlling Leading
Leading

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Management Functions (cont’d)

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Management Functions (cont’d)

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Management Functions (cont’d)

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Mintzberg’s Managerial Roles

EXHIBIT 1-1a
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Mintzberg’s Managerial Roles (cont’d)

EXHIBIT 1-1b
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Mintzberg’s Managerial Roles (cont’d)

EXHIBIT 1-1c
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Management Skills:

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Effective Versus Successful Managerial Activities
(Luthans):

1.1. Traditional
TraditionalManagement.
Management.
• •Decision making, planning, and controlling.
Decision making, planning, and controlling.
2.2. Communications.
Communications.
• •Exchanging routine information and processing paperwork.
Exchanging routine information and processing paperwork.
3.3. Human
HumanResource
ResourceManagement.
Management.
• •Motivating, disciplining, managing conflict, staffing, and
Motivating, disciplining, managing conflict, staffing, and
training.
training.
4.4. Networking.
Networking.
• •Socializing, politicking, and interacting with others.
Socializing, politicking, and interacting with others.

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Allocation of Activities by Time:

EXHIBIT 1-2
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By Brajesh Jha 25
By Brajesh Jha 26
By Brajesh Jha 27
By Brajesh Jha 28
Concept of organizational behavior:

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Organization Behavior is concerned with the
study of what people do in an organization and
how that behavior affects the performance of
the organization.
—Stephen P. Robbins

"The study of human behavior in

organizational settings, the interface between
human behavior and the organizational
context, and the organization itself.".
– Fred Luthans
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 Some definitions of OB:
• “Organizational Behavior is a field of study that
investigates the impact that individuals, groups and
structure have on behavior within organizations,
for the purpose of applying such knowledge toward
improving and organization's effectiveness,” -
Stephen P. Robbins.

• “Organizational Behaviour is the study and

application of knowledge about how people – as
individuals and as groups – act within
organizations,” - Keith Davis & John Newstorm.

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 Characteristics of OB:
• Multidisciplinary
• Goal Oriented
• Multiple levels
• Systematic study
• Situational ( Environmental influence)

• People Oriented
• A normative science
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 Multidisciplinary
Ob is a multidisciplinary approach.
It is developed through various behavior
science.
e.g. psychology, sociology, anthropology and
political science.
The concepts of learning, perception, attitude,
motivation etc. are borrowed from these
behavior science.

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 Goal oriented
• Ob is oriented toward achieving organizational
goal.
• Objectives involves earning profit, brand
image, team work etc.
• It emphasis on managing human resources
for organizational effectiveness.

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 Multiple level
• Ob is studied in three level individual, group
and organizational level.
• It investigates the influence of each level
behavior in overall organizational
effectiveness.

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 A total System approach
• Ob follows a total system approach.
• It follows input-processing-output system.
• Eg individual behavior can be analyzed by
keeping in his psychological framework,
interpersonal-orientation, group influence,
social and cultural factors.
• Individual behavior is complex. So ob apply
system approach to understand this complexity.

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 (Situational) environmental influence
• Ob is influenced by changing social
environment.
• Environment is dynamic in nature.
• On the basis of changing environment of
society, the perception, learning, motivation,
attitude and value of people would also be
changed. It creates conflict, power and politics.
• Ob help to handle the situation.

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 People oriented
• Ob is people oriented.
• People make the internal social system of
organization.
• People interact with each other in doing work.
• They influence each other while taking
important decision.
• Ob helps on predicting and controlling human
behavior for organizational effectiveness.
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 A normative science
• A normative science prescribes how the
various findings of research can be applied to
get organizational results, which are
acceptable to the society.
• It is a matter of values of the society and
people concerned.

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 Levels of OB Analysis
(Scope of OB)
• Organizational
processes
•• Organization
Organization systems
systems level
level

• Group/team
•• Group
Group level
level processes

•• Individual • Individual
Individual level
level
processes

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OB applies the knowledge gained about individuals,
groups, and the effect of structure on behavior in
order to make organizations work more effectively.

Individual Level Analyzes how an individual interacts

with organizational goals, policies, and practices.

Group Level Studies about group dynamics, group

cohesiveness, leadership.

Organizational Level Adaptation and interaction with

organizational environment.
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 Foundations/Basic assumptions of OB:
• Every discipline has a philosophical foundations of some basic assumptions or
fundamental concepts that guide it’s development.
• Those concepts and assumptions support the discipline to flourish and develop.
• The basic assumptions of OB are as follows:
1. The nature of people:
– Individual differences
– A whole person
– Caused/motivated behavior
– Value of the person (Human dignity) – fair treatment
– Selective perception
– Desire for involvement
2. The nature of organization:
– Social systems
– Mutuality of interests
– Ethical treatment

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 Selective perception
• Perception is an individual’s own view of the
world.
• People are unique and different from each
other.
• They perceive the same thing differently.

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 Desire for involvement
• Individual have desire for involvement in
work.
• They expect independency in doing job.
• Managers need to understand skills and ability
of each employee and provide opportunity to
participate in planning and decision making.

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 The assumption about nature of
organization
• For understanding organizational behaviour it
is essential to understand the nature of the
organization.

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 Social system
• Ob assumes organization as open social
systems.
• These systems affect behavior of individual.
• There are two types of social systems in
organization, formal and informal.
• Social system is dynamic and changes on the
basis of change in environment.

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 Mutuality of interest
• Ob assumes mutuality of interest of
employees in the organization.
• Employees need organization and organization
needs employees.
• Ob suggests managers to fulfill individual goals
in order to attain the organizational goals.

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 Ethical treatment
• Ob assumes ethical behavior in organization
with moral issues and choices.
• Organizational culture should establish with
mutual trust, respect, cooperation,
coordination, open communication and
customer caring behavior.
• Managers need to train employees for ethical
behavior.

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Contextual perspective of OB:

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• Ob is related not only the study of human
behavior but also studies of relationship
between employer and employees in an
organization.
• Ob can be studied from different ways with
the varieties of approaches.
• Ob is increasingly influenced by several
contextual perspectives.

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 Human resource approach
• It emphasis human resources as the central
point in studying organizational behavior.
• This approach believes that the success of
organization is possible only through the
efficiency of human resources in terms of their
competency, creativity, and fulfillment.
• It is also called the supportive approach.

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• Human resource approach stresses to change
the directive and controlling role of managers
to the supportive role for ensuring
organizational growth and success.

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 Productivity approach
• Ob can be studied from the perspective of
productivity of the organization.
• It is the measure of organizational
effectiveness.
• It is the ratio of output to input.
• It equally focuses to human and social input
and output to measure the productivity.

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 Internationalism approach
• It assumes that individual behavior results
from a continuous and multidirectional
interaction between characteristics of the
person and of the situation.
• It is believed that the individual and the
situation are presumed to interact
continuously.

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 Contingency approach
• It is also called as situational approach
assumes that there is no one methods or
behaviors is effectively work in different
situations.
• It refuses the universal approach i.e. one best
way universally applicable.
• It suggests that in most organization’s
situations and outcomes are contingent on, or
influenced by, other variables.
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 Systems approach
• It assumes the organization as a unified,
purposeful system composed of interrelated
parts.
• it suggests to take the organization as a whole
person, whole group, and the whole social
system.
• System approach creates the synergy effect on
the behavior into a whole system.

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 Environmental context of OB
• Globalization brings opportunities to the
employees for personal and professional
growth within and across the nation.
• This has changed the workforce composition
and ethics of the people.
• OB environment is composed with
globalization, workforce diversity and ethics.
• OB environment is being a key source of
behavioral change in employees.
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 Environmental context of OB:
(Globalization, diversity and ethics)

• Globalization:
From the OB point of view, the biggest
concern for globalization is the impact and
influence of multinational and transnational
companies.
Political, Economic ,socio-cultural, technological
globalization.

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 Forces of Globalization
Globalization – The trend toward a unified global
economy involving free trade and a free flow of
capital between countries
• Products, services, people, technologies, and financial capital move
relatively freely across national borders
• Tariffs, currency laws, travel restrictions, immigration restrictions, and
other barriers to these international flows become less difficult to
manage
• Unified world market in which to sell products and services, and acquire
resources

By Brajesh Jha 68
 Workforce diversity
• Gender, age, cultural, skill diversity

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 Diversity:
• From the OB point of view, the biggest concern
diversity is organizational strengthened through
feedback, teamwork, team-building activities,
and interpersonal communication.
• It refers heterogeneous types of employees
having difference in education level, intelligent,
age, gender, race and ethnicity.
• Employees want to retain their individual and
cultural identity, values and lifestyles.
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 Ethics
• Ethical behavior
• Ethical leadership
• Organizational ethics

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 Ethics:
• Ethics and ethical reflection need to be integrated
through all OB.
• Ethics are moral principal which consider about good-bad,
right-wrong, acceptable- regectable etc.
• Moral values such as respect, honesty, fairness and
responsibility are important construct of ethics.
• Include fundamental ground rules.
• Support for taking right decision.
• Effect on the moral and royalty of workers.
• Ethical leadership enhance reputation of the organization.

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 Ethics in the International Context
Principles of proper conduct focused on issues
such as:

Exploitation Environmental
Corruption
of Labor Impact

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Theoretical Frameworks for OB:
OB is extremely a complex discipline in
management that involves numerous inputs
and dimensions. An overall model of OB can
be developed by making use of cognitive,
behaviouristic and environmental
consequences.

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 1. Cognitive Framework:
• Cognitive approach emphasizes the positive and freewill aspects of human
behavior and uses concepts such as expectancy, demand, and intention.
• Cognition can be simply defined as the act of knowing an item of information.
• In cognitive framework, cognitions precede behavior and constitute input into
the person’s thinking, perception, problem solving, and information processing.
• The work of Edward Tolman can be used to represent the cognitive theoretical
approach. According to Tolman, learning consists of the expectancy that a
particular event will lead to a particular consequence.
• This cognitive concept of expectancy implies that organism is thinking about, or is
conscious or aware of the goal and result of a behavior exhibited by it.
• It means that a person desires a goal and also knows the behavior that will lead
to achievement of the goals.In the subject of organizational behavior, cognitive
approach dominates the units of analysis such as perception, personality and
attitudes, motivation, behavioral decision making and goal setting.

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 2. Behaviouristic Framework:
• Pioneer behaviourists Ivan Pavlov and Jon B. Watson stressed the importance of studying
observable behaviours instead of the elusive mind.
• They advocated that behaviour could be best understood in terms of stimulus and response
(S-R).
• They examined the impact of stimulus and felt that learning occurred when the S-R
connection was made. Modern behaviourism, that marks its beginning with B.F. Skinner,
advocates that behaviour in response to a stimulus is contingent on environmental
consequences.
• Thus, it is important to note that behaviouristic approach is based on observable behaviour
and environmental variables (which are also observable).
• Skinner believes that behaviour function of its consequences. For Eg; an organization passes
a circular to the employees asking them to stay longer in order to increase the production to
meet the increasing demand.
• Here, the circular is the stimulus. The employees may increase the production. This is the
response. If the increase in productivity is rewarded , it is the consequences. Skinner
explained that certain behaviour can be expected from an individual by creating a positive
consequences desired by him.

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 3. Social Cognitive Framework:
• Social learning theory takes the position that behaviour can best be
explained in terms of a continuous reciprocal interaction among
cognitive, behavioural, and environmental determinants.
• The person and the environmental situation do not function as
independent units but, in conjunction with behaviour itself,
reciprocally interact to determine behaviour.
• It means that cognitive variables and environmental variables are
relevant, but the experiences generated by previous behaviour also
partly determine what a person becomes and can do, which, in turn,
affects subsequently behaviour.
• A persons cognition or understanding changes according to the
experience of consequences of past behavior.

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