Organisational Behaviour.

Unit 1 - Importance & scope of organisational behaviour fundamental concepts. Personality, determinants- theories- types theory, trait theory, psycho analytical theory.

Chapter

1.

ORGANISATIONAL BEHAVIOUR.

As different phases of our lives, each of us is associated with some kind of organisation- a college, club, hospital or a business. Some like a giant corporation like TATA Tea or the Indian Army may be organised very formally. Others like a local football club may be less formally organised. But irrespective of their differences, all the organisations of which, each of us is a member have some common features. Management is basically concerned with ideas, things and people. Harold Koontz defines management in a very simple form. He states that management is the art of getting things done through and with the people in formally organised groups. Management is a process of organised activities. Without organised activities, two groups of people wont be involved in the performance of activities. Management process suggests that all the managers in the organisation perform certain functions to get things done by others. These functions include planning, organising, staffing, directing and controlling. Organizing is the process of arranging and allocating work, authority, and resources among organizations members so they can achieve the organizations goals. The managers must match an organizations structure to its goals and resources, a process called organizational design. Organisation is the place where managers practice the art of management. An organization is a structured social system consisting of groups and individuals working together to meet some agreed upon objectives. In other words an organization consist of people who, alone and together in work group, strive to attain common goals. Organization signifies an institution or sub unit of an institution. Thus, business, units, universities, and departments within these institutions are organization. Behaviour is a way of action. It is basically goal oriented. Webster defines it as the mode of

conducting oneself; the way in which a person acts in response to a stimulus. Thus human behaviour is his actions, expressed or implied, in response to various stimuli internal and mental or external and physical. A manager must understand, predict and control the activities of a person at a given moment. To predict behaviour, manager must know which motives or needs of people evoke a certain action at a particular time. ORGANISATIONAL BEHAVIOUR. The field of Organizational Behaviour deals with human behaviour in organizations. It is the study and application of knowledge about how people act within organizations. OB is directly concerned with the understanding, prediction, and control of human behaviour in organizations. Stephen .P. Robbins defines Organisational Behaviour as a filed 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 organizations effectiveness. According to Fred Luthans, organizational behavior is directly concerned with understanding, prediction and control of human behavior in an organization. Thus OB is essentially concerned with what people do in organizations. It applies the knowledge gained about individuals, groups and the effect of structure on behaviour in order to make organizations work more effectively. FUNDAMENTAL CONCEPTS. (Philosophical concepts) The subject Organisational Behaviour is based on a few fundamental concepts which revolve around the nature of people and organizations. Such fundamental concepts are not peculiar to the field of OB. Every discipline, be it a social science or a physical science, will flourish on definite assumptions. The subject OB is developed on the following concepts. 1. Individual Difference. People have much in common, but each person in the world is also individually different. Each individual is different from others in several ways.

Whether it is intelligence, physique, personality or any such trait, one can find striking differences. This concept says that each person in this world is unique and individual experiences after birth make people even more different. Individual difference mean that management can get the greatest motivation among employees by treating them differently. 2. A whole person. When an individual is appointed, his skill alone is not hired, but his social background, likes and dislikes, pride and prejudices etc is also hired. A persons family life cant be separated from his professional life. It is for this reason that managers should try to make the office, home away from home. 3. Caused Behaviour. Behaviour of an employee is caused and not random. Thus when a worker comes late or makes a problem with the supervisor, there is a cause behind. The manager must realize this basic principle and to solve the problems, he must discover the cause behind the behaviour. 4. Human Dignity. This concept confirms that people are to be treated differently from other factors of production, because they are of a higher order in the universe. It recognizes human dignity because people are of a higher order, they want to be treated with respect and dignity and should be treated this way. The concept of human dignity rejects the old idea of using employees as economic tools. 5. Organizations are Social Systems.

human behavior in organizations. 2. Cause and effect relationship. Human behavior is generally taken in terms of cause and effect relationship. It helps in predicting the behavior of individuals. It provides generalizations that managers can use to anticipate the effect of certain activities on human behavior. 3.Organisational behavior is a branch of social sciences:- Organisational behavior heavily influenced by several other social sciences viz. pshycholgy, sociology, and anthropology. 4. Three Levels of Analysis :- OB include the study three levels of analysis namely individual behavior, inter-individual behavior and the behavior of organizations themselves. 5. A science as well as art :- OB is a science ass well as art. The systematic knowledge about human behavior is a science and the application of behavioral knowledge and skill is an art. OB is not exact science because it can not exactly predict the behavior of people in an organization. 6. Body of theory knowledge and application:- OB consists of a body of theory, research and application which helps in understanding the human behavior in organization. All these techniques help the managers to solve human problems in organization. 7. Beneficial to both organization and individuals :- OB creates an atmosphere where by both organization and individuals are benefited by each other. A reasonable climate is created so that employees CONTRIBUTING DISCIPLINE.

From sociology we learn that organizations are social systems; and the activities there in are governed by the social laws as well as psychological laws. Just as people have psychological needs, they also have social roles and status. Their behaviour is influenced by their group as well as by their individual drives. Infact two type of social system exist side by side in organizations. One is the formal system and the other is the informal social system. Characteristics of organizational behavior. Ob has got the following charecterestics or features. 1. Behavioural approach to management:organizational behavior is that part of whole management which represents the behavioural approach to management. Ob has emerged as a distinct filed of stdy because of the importance of

Organizational Behaviour is an applied behavioural science. It has drawn heavily from a number of disciplines such as psychology, sociology, and anthropology. A brief description of each is in order. 1. Psychology. Psychology is understood as the science of mind. It has greatly contributed to the development of OB. Intra personal aspect of OB, like motivation, personality, perception, attitude, opinion and learning owe their study to psychology. 2. Sociology. Sociology is the study of group behaviour. It studies the behaviour of people in relation to their

fellow human beings. Sociologists have contributed to the study of inter personal dynamics like leadership, group dynamics, communication, formation of groups, formal and informal organsiations and the like. 3. Anthropology. Anthropology is understood as the study of man and his works. In particular anthropologists study the culture. Culture has significant influence on human behaviour. It dictates what people learn and how they behave. An employees behaviour, discretion about things good or bad, and his style of functioning are influenced by the culture of his organization. 4. Political Science. Political science studies the behaviour of individuals and groups within a political environment. Specific topics of concern to political scientists include conflict resolution, group coalition, allocation of power, and how people manipulate power for individual selfinterest. 5. Economics. Economics helps understand the decision processes, allocation of scarce resources, and the impact of economic policies on organisation. In particular it helps explain human motivation and the way people and their organizations make decisions. INDIVIDUAL DIFFERENCE. Individuals differ widely in their physical characteristics, temperamental qualities, mental abilities and the ways in which they behave. These differences form the very basis of organisational psychology. The significance and implications of these differences are so great that the study of individual differences and their proper evaluation assumes greater importance in organisational psychology. Organisations are composed of individuals. Each individual is an island in himself; each subject to particular motives, aspirations, perceptions and abilities. The behaviour of each individual is influenced by several factors. No two individuals are alike in their physical characteristics like height, weight, appearance etc. This also equally true of the psychological characteristics of individuals such as their intelligence, interests and aptitudes, personal qualities like aggressiveness, honesty and so on. These individual difference, both in physical and psychological characteristics of the individuals for the very basis of organisational psychology. The reasons for these is that only by understanding the various physical and

psychological assets as well as liabilities of an individual, that we are in a better position to assign the right type of work. For example no company will ever try to select a driver or machine operator who has poor eyesight, or a salesman who is unattractive in physical features. The study and measurement of individual difference, thus, forms the very basis of some important functions of psychologists in organisational functions such as personal selection, placement, promotions and so on. in modern times technology and industry have advanced so much that every position in a Co demands certain physical or psychological characteristics in an individual. It is for this reason that a major part of industrial psychologists efforts are directed towards investigating and understanding the differences among individuals and applying such knowledge in various areas in an organisation. Factors Affecting Individual Difference. The behaviour of each individual in an organisation is different; and his behaviour is influenced by several factors. The basic aspects in which individuals may vary are broadly outlined below.

PSYCHOLOGICAL FACTORS. Psychological factors are an individuals mental characteristics and attributes that can affect an individuals behaviour. There are several psychological factors and more prominent among them are given below.

A. Difference in Intelligence. People differ greatly in their intelligence and this affect their capacity to work. Persons intelligence is often a very good index of his ability to cope with varied problems of life. It hardly needs saying that various jobs and positions in industry require varying degrees of intelligence, if they are to be carried out effectively. B. Difference in Interest. We know that people differ greatly in their interests. Some prefer to work quietly in indoors, others like to move about, some others have great interest in music, acting, law, politics, some like repetitive type of work, others are bored by it. Organisational psychologists have found that an individual who works in the area of his interest is much more satisfied than one who has to do some work that has no relation with his interest. It is for this reason that many of organisational psychologists are concentrated in devising methods of reliable measures of an individuals interests, and making use of such measures in selecting people for various jobs. C. Difference in Personality Characteristics. People also differ very widely in their personality. The term personality as it is used in psychology, usually applies to emotional qualities of a person as well as certain uncharacteristic ways of his behaving. Most of these are learned by an individual through his own experiences in life or by imitating significant people in his surroundings. But often they are hereditary. An individuals personality make people different, and often taking in to account such differences becomes necessary in many practical work situations. D. Learning. Human beings greatest asset is their capacity to learn through their experience with the things encountered in life. People vary greatly in their capacity to learn. What a man or his behaviour is, is largely determined by the way he has learned in life. Learning acquires great importance in many situations in industry, but more directly so, when we are concerned with the problems of training.

Learning has been defined in psychology as a relatively permanent change in behaviour, which occurs as a result of experience or practice. It is a key concept in psychology because humans are constantly learning :some time without knowing and some times deliberately. It affects all aspects of human behaviour. For example a workers skill, or managers attitudes are all learned. E. Difference in Perception. People also differ in the ways they perceive the world surrounding them. In its simple sense, perception is understood as the act of seeing what is there to be seen. Perception refers to the unique reading of a situation. In other words what is perceived may be different from what is real. Stephen.P.Robbins defines perception as " a process by which individuals organise and interpret their sensory impressions in order to give meaning to their environments." The perception is a complex process which, is a unique interpretation of the situation. Differences in the perceiving styles of the individuals can be of great consequence in work. The ability of a supervisor to observe defects in inspection work, see the conditions that may lead to an accident etc are dependent upon his perception, or how he interprets his sensory impulses. F. Attitudes. Attitude is an important factor, which affects human behaviour. It is a tendency to feel and behave in a particular way towards some objects. Individuals acquire attitudes from different sources. The most important sources of acquiring attitudes are direct experience with the object, association, family etc. Attitudes are learned, as human beings learn various other responses. At any given moment the attitude may be inactive, but when the appropriate circumstances arise, the attitude makes the individual to react in favourable, unfavourable or indifferent manner. For example a worker who has experienced considerable frustration in a Company may gradually develop an attitude of dislike towards the Co. 2. PERSONNAL FACTORS. Every individual brings to the work place, a variety of personal characteristics and attributes like age, education, abilities and similar related factors. A. Differences in Physical Characteristics. Physical characteristics like height, weight,

strength, keenness of vision, keenness of hearing, reaction time, etc are often measured in some context or other. The study of the differences in such physical characteristics acquires great importance; because successful performance often depends upon some of these characteristics. Some heavy job require considerable physical energy, others require a very keen sense of vision or learning. B. Age. Age is an important variable because of its impact on performance turnover, productivity and satisfaction. Performance depends on age. As age advances, performance is likely to decline. Similarly ageing has impact on turnover. There is positive association between age and satisfaction level of employees. C. Sex. The issues of male and female employees has received considerable attention from academics, sociologists and researchers. There may be differences in problem solving ability, analytical skill, motivation, and leadership or learning ability. Sex has its impact on absenteeism also. It has been proved that some times absenteeism is high among female workers due to family responsibilities. D. Education. Education has its effect upon individual difference, and behaviour , largely through the level of education received. Increased levels of education positively affect the working capacity and ability of a person. The type of education can also affect the behaviour of a person. E. Abilities. Ability refers to an individuals capacity to perform the various tasks in a job. Ability of an individual is made up of two sets of skills. - Intellectual and physical. Intellectual abilities are needed to perform mental activities. IQ tests, for example, are designed to ascertain ones intellectual abilities. Physical abilities manifest in ones stamina, strength and the like. As each employees physical abilities are different, their performance level will also be different. F. Marital Status. Marital status has influence on peoples behaviour. It affects absenteeism, turnover and satisfaction levels. As marriage imposes additional responsibility, hence the needs for steady job and steady

income. The success or failure of ones marriage life also affect the behaviour of the individual. G. Number of Dependants. There is correlation between number of dependants an employee has and his behaviour in an organisation. Number of children an employee has is positively related to absence, especially among females. ENVIRONMENTAL FACTORS. Environmental factors include such variables as economic, social, political, and the like. These factors are mainly external and will cause individual difference. A. Economic Factors. The economic environment is an important determinant of individual difference. All work is performed within economic framework that both directly and indirectly affects the individuals working in it. Employment opportunities will have a strong influence on behaviour. Fewer job opportunities increase the emphasis on job security and can even change the basic nature of the employee. Wages satisfy various individual needs. Money is a complex variable and its effect on individual behaviour varies tremendously. Inequalities in wages will have a negative effect on employee performance. B. Cultural Environment. The cultural environment is made up of institutions and other forces that affect the society's basic values, perceptions, work ethics, preferences and behaviour. People grow up in a particular society that shape their basic beliefs, values and behaviours. Culture varies from country to country and these variations produce different behaviours; work ethics, achievement need, effort reward expectations and values are important cultural factors which affect individuals. In the context of job, work ethic implies hard work and commitment to work. Strong work ethic ensures motivated employees. Achievement need too has influence on employee behaviour. A person with a 'high need to achieve' tends to see a high degree of personal responsibility. It is too well known that a perfect match between effort and reward will produce better performance from an individual. When the individual feels that he has been treated unfairly, the performance suffers. 3.

C. Political Factors. The political climate in which an individual lives can affect the individual behaviour through several

factors. The political ideology of a country and society affects individual behaviour. 4. ORGANISATIONAL FACTORS.

Individual behaviour is also influenced by physical facilities, organisation structure and design, leadership and reward system in an organisation. A. Facilities. The physical facilities such as lighting, heating, ventilation, air conditioning, space provided, equipments etc will have their influence on employee behaviour and performance. B. Organisation Structure and Design. An organisation is a planned co ordination of a number of people and their activities for the achievement of some specific goals. Organisation structure shows the way in which different groups and departments in the organisation are set up. The behaviour and performance of an individual is influenced by where that person fits into the overall structure and design of the organisation. C. Leadership. The organisation establishes a system of leadership and supervision to provide direction, assistance, advise and coaching to individual members. The leader behaviour is, there fore, a potential source of influence on an individual. D. Reward Systems. Organisations establish reward systems to compensate their employees. the behaviour and performance of an individual is influenced by the reward system his organisation has established. E. Motivation. Another factor which affects individual difference is motivation. One of the most important task of a management job is to identify and activate employee motives consciously and constructively towards the achievement of the objectives.