HRM for EXECUTIVES

Introduction to
Organizational
Behaviour

Jun 10, 2024 OB: AN OVERVIEW 1

 ORGANIZATIONAL BEHAVIOUR
HRM for EXECUTIVES

Organizational behavior is the

systematic study and careful
application of knowledge about
how people - as individuals
and as groups- act within
organizations.

Jun 10, 2024 OB: AN OVERVIEW 2

 HRM for EXECUTIVES

GOALS OF OB

• Describe
• Understand
• Predict
• Control

Jun 10, 2024 OB: AN OVERVIEW 3

 HRM for EXECUTIVES

Describe:
•Study of organizational behaviour is based on
scientific methods, which have been applied on
human beings.
•It is a science, that analyses as to how people
behave in different situations in the organization.
•A manager should be able to describe the behaviour
of each of the individuals under his command, identify
attitude, and be able to pinpoint his behaviour so that
the situation in the organization is under control.

Jun 10, 2024 OB: AN OVERVIEW 4

 HRM for EXECUTIVES

Understand:
•Leaders must understand human behaviour as to
why people behave in particular manner and try to
identify reasons so that corrective actions can be
taken.

Predict:
•By frequent closer interaction, a leader is in a position
to identify the nature of workers.
•Some are more productive while the others are tardy
and disruptive.
•In such situation, a leader should be able to handle
each individual differently so that his or her actions
can be channalized to higher productivity.
Jun 10, 2024 OB: AN OVERVIEW 5
 HRM for EXECUTIVES
Control:
•Managers in the organizations should train their subordinates
continuously; aim being development of skills, promotion of
productivity and improvement of individual behaviour.
•It is a continuous process on the part of manager. He must lay
down control measures so that the energy of workers is diverted
towards organizational objectives.
•Communication should be used to ensure that the behaviour of
individual is controlled.
•Environment has a great impact on human behaviour.
Appropriate internal environment would help organizations to
built favourable work environment that will help individuals and
groups within organizations to work effectively towards higher
productivity.
Jun 10, 2024 OB: AN OVERVIEW 6
 HRM for EXECUTIVES

Key forces affect Organizational Behaviour

• There are a complex set of key forces that

affect organizational behaviour today.
• These key forces are classified into four
areas- People, Structure, Technology, and
Environment.
• There is an interaction of people, structure,
and technology and these elements are
influenced by the environment.
Jun 10, 2024 OB: AN OVERVIEW 7
 PEOPLE
HRM for EXECUTIVES
• 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 organization is combination of 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 relationship among the
employees and motivate themselves.
\

Jun 10, 2024 OB: AN OVERVIEW 8

 STRUCTURE
HRM for EXECUTIVES

• Structure defines the formal relationship and use of

people in organization.
• There are managers and employees, accounts
assemblers in order to accomplish different kind
activities.
• They are related in structural way so that their work
can be effectively coordinated. Because there is no
organization can be successful without proper
coordination.

Jun 10, 2024 OB: AN OVERVIEW 9

 TECHNOLOGY
HRM for EXECUTIVES

• 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.

Jun 10, 2024 OB: AN OVERVIEW 10

 ENVIRONMENT
HRM for EXECUTIVES
• All organizations operate within an internal and an
external environment. A single organization does
not exit alone.
• An organization is a part of a lager system that
contains many other elements, such as government,
the family and other organizations.
• Any kinds of change in the environment effect the
organization. Citizens expect organizations should
be socially responsible. There is a direct impact of
several tread unions of organizations.
• So all the elements of environments influence the
attitude and provide competition. It must be
considered in the study of human behaviour in
organization.
Jun 10, 2024 OB: AN OVERVIEW 11
 LIMITATIONS OF ORGANIZATIONAL BEHAVIOR
HRM for EXECUTIVES

Behavioral bias:
•It is a mistake to make an assumption that the objective of
organizational behavior is as simple as to create a satisfied
employee-base, as that goal will not automatically turn into
new products and stellar customer service.
•It is also a fact that the person who pushes production
outputs without regard for employee needs is also not
applying organizational behavior in the right fashion.
•The most effective OB dwells, acknowledges and appreciates
a social system that consists of many types of human needs
that are served in many ways.
•It further causes dependence, contentment, indiscipline, and
irresponsibility.
Jun 10, 2024 OB: AN OVERVIEW 12
 LIMITATIONS OF ORGANIZATIONAL BEHAVIOR
HRM for EXECUTIVES

Law of diminishing returns:

•It says that beyond a certain point, there is a decline in output
even after each additional good or positive factor.
•The concept means that for any situation there is an optimum
level of a desirable practice, such as recognition or
participation. when that point is exceeded, there is a decline in
returns realized. To put it differently, the fact that a practice is
desirable does not necessarily imply that more of the same
practice is more desirable.
Unethical practices and manipulation of people:
•Knowledge of motivation and communication acquired can be
used to exploit subordinates in an Organization by the
manipulative managers.
Jun 10, 2024 OB: AN OVERVIEW 13
 HRM for EXECUTIVES

Fundamental Concepts
of
Organizational Behaviour

• The Nature of People

• The Nature of Organizations

Jun 10, 2024 OB: AN OVERVIEW 14

 THE NATURE OF PEOPLE
HRM for EXECUTIVES

Individual differences
Each person is substantially different
from all others in terms of their
personalities, needs, demographic
factors and past experiences and/or
because they are placed in different
physical settings, time periods or social
surroundings.

Jun 10, 2024 OB: AN OVERVIEW 15

 THE NATURE OF PEOPLE
HRM for EXECUTIVES

Perception

•Perception is the unique way in which each person

sees, organizes and interprets things based on their
background of individual differences.

•Each person reacts not to an objective world, but to a world

judged in terms of his/her own beliefs, values and
expectations.

•Managers need to recognize the perceptual differences

among the employees and manage them accordingly.

Jun 10, 2024 OB: AN OVERVIEW 16

 THE NATURE OF PEOPLE
HRM for EXECUTIVES
A whole person
•People function as total human beings. People are physical,
mental, social and spiritual beings and the organization
actually employs the whole person rather than certain
characteristics.
•There are spillover effects between the work life and life
outside work and management’s focus should be in
developing not only a better employee but also a better
person in terms of growth and fulfillment.
•If the whole person can be developed, then benefits will
extend beyond the firm into the larger society in which
each employee lives.

Jun 10, 2024 OB: AN OVERVIEW 17

 THE NATURE OF PEOPLE
HRM for EXECUTIVES

Motivated Behaviour

•Individual’s behavior is guided by their needs

and the consequences that results from their acts.

•In case of needs, people are motivated not by what

others think they ought to have but by what they
themselves want.

•Motivation of employees is essential to the

operation of organizations and the biggest challenge
faced by managers.

Jun 10, 2024 OB: AN OVERVIEW 18

 THE NATURE OF PEOPLE
HRM for EXECUTIVES

Desire for Involvement

•Many employees actively seek opportunities at work

to become involved in relevant decisions, thereby
contributing their talents and ideas to the
organization’s success.

•Consequently, organizations need to provide

opportunities to the employees for meaningful
involvement.

Jun 10, 2024 OB: AN OVERVIEW 19

 THE NATURE OF PEOPLE
HRM for EXECUTIVES

Value of the Person

•People wants to be treated with care, dignity
and respect and increasingly they are demanding
such treatment from their employers.
•They want to be valued for their skills and
abilities and to be provided with opportunities to
develop themselves.

Jun 10, 2024 OB: AN OVERVIEW 20

 THE NATURE OF ORGANIZATIONS
HRM for EXECUTIVES

Social systems
•Sociology tells that organizations are social systems. Just
have people have psychological needs they also have
social roles and status.
•Their behavior is influenced by their group as well as
their by their individual drives.
•Two types of social systems exist side by side in the
organization- the formal (official ) social system and the
informal social system - each influencing and getting
influenced by the other.

Jun 10, 2024 OB: AN OVERVIEW 21

 THE NATURE OF ORGANIZATIONS
HRM for EXECUTIVES

Mutual Interest
•There is a mutuality of interest between the
organization and its employees.
•Organization needs employees to reach its
objectives and people need organizations to help
them reach individual objectives.
•Mutual interest provides a super ordinate goal –
one that can be attained only through the integrated
efforts of individuals and their employees.

Jun 10, 2024 OB: AN OVERVIEW 22

 THE NATURE OF ORGANIZATIONS
HRM for EXECUTIVES

Ethics
•Ethics is the use of moral principles and values to
affect the behavior of individuals and organizations with
regard to choices between what is right and wrong.
•In order to ensure a higher standard of ethical performance
by managers and employees companies have established
codes of ethics, publicized statements of ethical values and
set up internal procedures to handle misconduct.
•When organization’s goals and actions are ethical,
individual, organizational and social objectives are more
likely to be met.

Jun 10, 2024 OB: AN OVERVIEW 23

 IMPORTANCE OF OB FOR THE MANAGERS
HRM for EXECUTIVES
• Organizational behavior provides a useful set of tools at
many levels of analysis.
• It helps managers to look at the behavior of individuals within
an organization.
• It aids their understanding of the complexities involved
in interpersonal relations, when two people (two coworkers
or a superior-subordinate pair) interact.
• Organizational Behaviour is valuable for examining the
dynamics of relationships within small groups, both formal
teams and informal groups.
• When two or more groups need to coordinate their efforts,
managers become interested in the intergroup relations that
emerge.
• Organizations can also be viewed and managed as
whole systems that have inter organizational relationships.
Jun 10, 2024 OB: AN OVERVIEW 24