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Organizational Behavior & its

role in Organizational Activities

Organizational Behavior is the study of what people think, feel & do in and around of
an Organization. Organizational Behavior investigates systematically study individual
team & structural characteristics that influence behavior within the Organizations
through their study. Expertise of Organizational Behavior can try to recognize &
forecast how these behaviors help an Organization to meet its achievement.

Organization Behavior emerged as a distinct field around 1940’s. However its origin can
be traced much further back in time Plato, a Greek philosopher wrote first time about
equity in working environment.

The writings of the 16th century, Italian philosopher Niccolo Machiavelli laid the base for
contemporary work on Organizational Power & Politics. In 1776 Adam Smith, the father
of the Modern Management promoted a new form of Organizational Structure based on
the Labor Division. After about hundred years a renowned German sociologist Max
Waber wrote about Rational Organizations & took initiative discussion of fascinating

Reasons for studying Organizational Behavior

Actually Organizational Behavior is very useful to any of the Organization / Company,
even in a sole trader-ship company. There are much more expediency in Organizational
Behavior. Some of the very vital reasons are mentioning below :

i) To understand Organizational events

ii) Organizational Behavior research
iii) Influence Organizational events
iv) Predict Organizational events
v) Globalization
vi) Implication for Organizational Behavior
vii) The changing workforces
viii) Emerging Employment relationship
ix) Contingent workforces
x) Information Technology & Organizational Behavior
xi) Teams and more teams.

What are Organization

Organizations are as old as the human race. They are groups of people who work enter
dependability towards some purpose. Organizations are not building or other physical
structures. Rather, Organizations are people who work together to achieve a set of

An organizations mission statement may be different from its true goals. Also they
question the assumption that all Organizational members believe in the same goals.
These points are supposing apparently true, but imagine an Organization without
goals; it would consist of a mass of people wandering any around aimlessly without any
logic of direction.

Reasons for studying Organizational behavior

The key elements in organizational behavior are people, structure, technology, and
environment in which the organization operates. When people join together in an
organization to accomplish an objective. Some kind of structure of is required. People
also use technology to help get the job …. So there is an interaction of people structure
and technology in addition. These elements are influenced by the external
environment. Each of the four elements of organizational behavior will be consideration
People People make up the internal social system of the organization. The
consistent of individuals and group. And large groups as well as small
ones. The human organization today not the same as it was yesterday.
Or the before. People are the living, thinking, and feeding being who
work in the organization to achieve their objectives.
Structure Structure defines the former relations of the people in organizations.
Different jobs are required to accomplish all of an organizations activity.
There are Managers and employees, accountants and assemblers.
These people have to be related in some structural way so that their
work can be effectively coordinated
Technology Technology provides the resources with which people work and affects
the tasks that they perform. They cannot accomplish much with their
bare hands, so they build buildings, design machines, create work
processes and assemble resources. The technology used has significant
influences on working relationship.
Technology All organization operates with an external environment. A Single
organization does not exit along. It is part of a larger system that
contains many other elements, such as government, the family, and
other organizations. All of these mutually influence each others in a
complex system.

01) To understand organizational even

02) Organizational behavior research
03) Influence organizational events
04) Predict organizational events
05) Globalization
06) Implication for organizational behavior
07) The changing workforce
08) Emerging Employment relationship
09) Contingent work force
10) Information technology and Organizational behavior
11) Team and more teams

Levels of analysis
There are generally 3 (three) levels of analysis in Organizational Behavior. Such as :

1) Individual Process
2) Team Process
3) Organizational Process

As managers, we are interested in productivity. Therefore, we are interested in
knowing how to improve the productivity of our employees. This productivity is a
human behavior and, as such, is influenced by a number of factors.

First, productivity is a function of each of the employees' unique personalities. Second,

employees' behaviors are influenced by the environments in which they find
themselves. For example, an employee's behavior (and productivity) will be influenced
by a dirty, hot, noisy, or dangerous worksite. Finally, an employee's behavior will be a
function of that employee's innate drives or felt needs and the opportunities he or she
has to satisfy those drives or needs in the workplace.

Employees' performance is, of course, partially determined by the opportunities given

them to demonstrate their abilities. If employees are never given opportunities to
utilize all of their skills, then the employer may never have the benefit of their total
performance. Work performance is also contingent upon employee abilities. If
employees lack the learned skills or innate talents to do a particular job, then
performance will be less than optimal. A third dimension of performance is motivation.

A generalized model of motivation posits a set of innate drives and felt needs for each
employee. The employee brings these drives and needs to the workplace and they
influence the employee's workplace behavior and productivity. These drive and needs
create a tension within the employee if left unsatisfied. This tension may be both
physical (manifested through the symptoms of stress) and psychological. The employee
thus engages in whatever behaviors are necessary to reduce this tension. If the
behavior undertaken is appropriate, it may be assumed that the tension is reduced and
that tension-reducing behaviors are ceased.

As seen in the discussion above, motivation is a dynamic process; people may be

motivated by different things (needs and drives) during different periods of their lives.

Managing Employee Motivation and Performance

Process perspectives on motivation deal with how motivation occurs. Expectancy theory
suggests that people are motivated to perform if they believe that their effort will result
in high performance, that this performance will lead to rewards, and that the positive
aspects of the outcomes outweigh the negative aspects. Equity theory is based on the
premise that people are motivated to achieve and maintain social equity. Attribution
theory is a new process theory. The reinforcement perspective focuses on how
motivation is maintained. Its basic assumption is that behavior that results in rewarding
consequences is likely to be repeated, whereas behavior resulting in negative
consequences is less likely to be repeated. Reinforcement contingencies can be
arranged in the form of positive reinforcement, avoidance, punishment, and extinction,
and they can be provided on fixed-interval, variable-interval, fixed-ratio, or variable-
ratio schedules.

Two newly emerging approaches to employee motivation are goal-setting theory and
the Japanese approach. Managers often adopt behavior modification, modified
workweeks, work redesign, and participation programs to enhance motivation.
Organizational reward systems are the primary mechanisms managers have for
managing motivation. Properly designed systems can improve attitudes, motivation,
and behaviors.

Effective reward systems must provide sufficient rewards on an equitable basis at the
individual level. Contemporary reward systems include merit systems and various kinds
of incentive systems.

There are generally 3 (three) gears determine individual performance


1) Motivation : the desire to do the job.

2) Ability : the capability to do the job
3) The work environment : the tools, materials, and information needed
to do the job.

Managing Leadership and Influence Processes

As a process, leadership is the use of no coercive influence to shape the groups or

organization's goals, motivate behavior toward the achievement of those goals, and
help define group or organization culture. As a property, leadership is the set of
characteristics attributed to those who are perceived to be leaders. Leadership and
management are often related but are also different. Managers and leaders use
legitimate, reward, coercive, referent, and expert power.

The trait approach to leadership assumed that some basic trait or set of traits
differentiated leaders from nonreaders. The leadership-behavior approach to leadership
assumed that the behavior of effective leaders was somehow different from the
behavior of nonreaders. Research at the University of Michigan and Ohio State
identified two basic forms of leadership behavior-one concentrating on work and
performance and the other concentrating on employee welfare and support. The
Managerial Grid attempts to train managers to exhibit high levels of both forms of

Situational approaches to leadership recognize that appropriate forms of leadership

behavior are not universally applicable and attempt to specify situations in which
various behaviors are appropriate. The LPC theory suggests that a leader's behaviors
should be either task-oriented or relationship-oriented depending on the favorableness
of the situation. The path-goal theory suggests that directive, supportive, participative,
or achievement-oriented leader behaviors may be appropriate, depending on the
personal characteristics of subordinates and the environment. Vroom's decision tree
approach maintains that leaders should vary the extent to which they allow
subordinates to participate in making decisions as a function of problem attributes. The
leader-member exchange model focuses on individual relationships between leaders
and followers and in-group versus out-group considerations.

Related leadership perspectives are the concept of substitutes for leadership,

charismatic leadership, and the role of transformational leadership in organizations.

Political behavior is another influence process frequently used in organizations.

Impression management, one especially important form of political behavior, is a direct
and intentional effort by someone to enhance his or her image in the eyes of others.
Managers can take steps to limit the effects of political behavior.

Leadership As a process, the use of no coercive influence to shape the group's or

organization's goals, motivate behavior toward the achievement of those goals, and
help define group or organization culture; as a property, the set of characteristics
attributed to individuals who are perceived to be leaders.

Organizational Behavior as Job Design

Autocratic Custodial Supportive Collegial System
Basic of model Power Economic Leadership Partnership Trust
Resources Community
Managerial Authority Money Support Teamwork Caring
Orientation Compassion
Employee Obedience Security & Job Responsible Psychological
Orientation Benefit performance behavior ownership
Employee Dependence on Dependence on Participation Self discipline Self-motivation
Psychological boss org.
Employee Needs Subsistence Security Status & Self- Wide range
met Recognition actualization
Performance Minimum passive Awakened Moderate Passion &
Result cooperation drives enthusiasm Commitment

Models of Organizational Behavior

There are four major models or frameworks that organizations operate out of:

 Autocratic - The basis of this model is power with a managerial

orientation of authority. The employees in turn are oriented towards
obedience and dependence on the boss. The employee need that is met is
subsistence. The performance result is minimal.
 Custodial - The basis of this model is economic resources with a
managerial orientation of money. The employees in turn are oriented
towards security and benefits and dependence on the organization. The
employee need that is met is security. The performance result is passive
 Supportive - The basis of this model is leadership with a managerial
orientation of support. The employees in turn are oriented towards job
performance and participation. The employee need that is met is status
and recognition. The performance result is awakened drives.
 Collegial - The basis of this model is partnership with a managerial
orientation of teamwork. The employees in turn are oriented towards
responsible behavior and self-discipline. The employee need that is met is
self-actualization. The performance result is moderate enthusiasm.

Although there are four separate models, almost no organization operates exclusively in
one. There will usually be a predominate one, with one or more areas over-lapping in
the other models.

The first model, autocratic, had its roots in the industrial revolution. The managers of
this type of organization operate out of McGregor's Theory X. The next three models
begin to build on McGregor's Theory Y. They have each evolved over a period of time
and there is no one "best" model. The collegial model should not be thought as the last
or best model, but the beginning of a new model or paradigm.

Individualization in Organization
A social system is a complex set of human relationships interacting in many ways.
Within an organization, the social system includes all the people in it and their
relationships to each other and to the outside world. The behavior of one member can
have an impact, either directly or indirectly, on the behavior of others. Also, the social
system does not have exchanges goods, ideas, culture, etc. with the
environment around it.

Culture is the conventional behavior of a society that encompasses beliefs, customs,

knowledge, and practices. It influences human behavior, even though it seldom enters
into their conscious thought. People depend on culture as it gives them stability,
security, understanding, and the ability to respond to a given situation. This is why
people fear change. They fear the system will become unstable, their security will be
lost, they will not understand the new process, and they will not know how to respond
to the new situations.

Individualization is when employees successfully exert influence on the social system

by challenging the culture.

The above chart shows how individualization affects different organizations :


 Too little socialization and too little individualization create isolation.

 Too high socialization and too little individualization create conformity.

 Too little socialization and too high individualization creates rebellion
 While the match those organizations want to create is high socialization
and high individualization for a creative environment. This is what it takes
to survive in a very competitive environment...having people grow with
the organization, but doing the right thing when others want to follow the
easy path.

This can become quite a balancing act. Individualism favors individual rights, loosely
knit social networks, self respect, and personal rewards and careers. It becomes look
out for number 1! Socialization or collectivism favors the group, harmony, and asks
"What is best for the organization?" Organizations need people to challenge, question,
and experiment while still maintaining the culture that binds them into a social system

Successful Organizational Models for Main Street Programs

While a Main Street program can be housed in a number of agencies or organizations,
one of the most common and successful ways is to establish an independent, private
nonprofit organization whose express purpose is to revitalize the commercial district. As
a separate organization, the Main Street program can :

 Bring together public and private interests in an objective environment

unhampered by the constraints of local politics.
 Establish an agenda exclusively for the revitalization of the commercial
 Maintain a clear focus on issues that affect the district.
 Serve as a visible symbol of new activity and a new future for the
commercial district


This paper reviews previous research on organizations and IT, value chain analysis and
business process and points out that the existing studies do not provide adequate
understanding and guidance towards virtual organization and its design. As a result, a
new organizational model that consists of five variables: people, business processes,
technology, connectivity and boundary were presented. The model depicts process
relationships within the organization and provides a framework for overall
organizational design that may include relationships among different design variables
and external relationships with organizational environment.

The paper made an attempt to define virtual organizations a type of organizations that
are formed through business processes, people and technology with high degree of
connectivity and levels of boundary.

In addition, the new organizational model provides guidance for identifying information
technology applications that are intricately linked with business processes such as inter-
organizational systems, and suggests a guideline for designing virtual organizations and
transforming existing organizations in the context of knowledge-based business

No matter whether we are building virtual organizations or not, we can not afford not
to see the closely intertwined organizational design with information technology and

the virtual aspect of doing business within market space. Forward looking
organizational designers should consider the possibilities and challenges brought upon
by ever changing information technology in the design or re-design of their

This assignment was made possible with the generous support of the
following(s) WebPages.