Organizational Behavior: Definition of OB, Contributing discipline to OB. Challenges and Opportunities for OB. Foundations of Individual Behavior: Biographical characteristics, Ability, and Learning. Values, Attitudes and Job Satisfaction Personality and Emotions Perception

Chapter 1.1: Introduction to Organization Behavior
Meaning and Definition of Organizational Behavior Determinants of Organizational Behavior Limitations of Organizational Behavior Basic Approaches of OB Models of Organizational Behavior Types of Organizational Behavior Models Contribution of Various Disciplines/Role of Behavioral Science in Management Challenges and Opportunities for OB

Chapter 1.2: Behavior




Individual Behavior Meaning of Individual Behavior Foundation of Individual Behavior Personal Factors/ Biographical Factors Environmental Factors Organizational Factors Psychological Factors Models of Individual Behavior Ability Types of Ability Learning Meaning and Definition of Learning Learning Process Theories of Learning

Chapter 1.3: Values, Attitudes and Job Satisfaction
Values Meaning and Definition of Values Sources of Values System Attitudes Meaning and Definition of Attitude Sources of Attitudes Formation of Attitude Attitude Theories and Models Job Satisfaction Meaning and Definition of Job Satisfaction Determinants of Job Satisfaction Theories of Job Satisfaction

Chapter 1.4: Personality and Emotions
Meaning and Definition of Personality
Determinants of Personality Personality Types Theories of Personality Emotion Meaning of Emotion Determinants of Emotions Theories of Emotion

Chapter 1.5: Perception
Meaning and Definition of Perception Components of Perception Perceptual Process

The behavior that emerges from this interaction defines the field of the organizational behavior. Therefore. predicting and influencing individual behavior in organizational setting. managers would have the capacity to predict which employees might be dedicated and productive or which ones might be absent. Managers need to be able to improve results through the actions they and their employees take.B-2 Thakur’s MBA First Semester HB (Organizational Behavior) CHAPTER 1. Organizational behavior is a scientific discipline in which a large number of research studies and conceptual developments are constantly adding to its knowledge base. groups and structure have on behavior in organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness. It is also an applied science.1 Introduction to Organization Behavior ORGANIZATIONAL BEHAVIOR Meaning and Definition of Organizational Behavior Human behavior in organization is determined partly by the requirements of the formal organization and partly by the personal systems of the individuals forming the organization. and productivity. They are: 1) An industrial enterprise is an organization of people. 4) The policies and procedures adopted in an enterprise may influence people in the directions not always foreseen by the policy makers. in that information about effective practices in one organization is being extended to many others. inquisitive managers learn to probe for underlying explanations. systematically. skill development. 2) These people must be motivated to work effectively. It strives to identify ways in which people can act more effectively. Achieving this goal allows managers to communicate about human behavior at work using a common language. predict. 3) Predict Employee Behavior: Predicting future employee behavior is another goal of organizational behavior. 2) Understand People Behavior: A second goal is to understand why people behave as they do.” Assumptions of Organizational Behavior The study of Organization Behavior has certain basic assumptions. predicting and controlling human behavior at work. they are vitally interested in being able to make an impact on employee behavior.” According to Callahan. Goals of Organizational Behavior Most sciences share four goals—to describe. According to Fred Luthans “Organizational behavior is understanding. Organizational behavior also embraces these goals. team effort. “Organizational behavior is subset of management activities concerned with understanding. tardy. or disruptive on a certain day (so that managers could take preventive actions). Ideally. how people behave under a variety of conditions. 3) The goals of the employee and the employer may not necessarily coincide. but not understand the reasons behind those actions. and control some phenomenon. . Since managers are held responsible for performance outcomes. Managers would be highly frustrated if they could only talk about behaviors of their employees.” According to Stephen Robins “OB is a field of study that investigates the impact that individuals. Organizational behavior is the study and application of knowledge about how people—as individuals and as groups—act within organizations. 4) Control Human Activity: The final goal of organizational behavior is to control (at least partially) and develop some human activity at work. and organizational behavior can aid them in their pursuit of this goal. 1) Describe People Behavior: The first objective is to describe. understand.

and social and cultural factors. It provides a rational thinking about people. The systematic knowledge about human behavior is a science. It is based on the belief that needs and motivation of people are of high concern. vi) Human Tool: OB is a human tool for human benefit. predict. It helps in demolishing ‘incorrect’ assumptions one may hold about behavior. The man will actualize these potentials if given proper conditions and environments. group behavior and behavior of the organization itself. it suggests various behavioral approaches. there is optimism about the innate potential of man to be independent. It inculcates creative thinking among the managers to solve human problems in organizations. It provides generalizations that managers can use to anticipate the effects of certain actions on human behavior. the systems thinking in organizational analysis has been developed by behavioral scientists. Wherever organizations are. for the actions of most managers today are subject to intense scrutiny. Its study helps in understanding the human behavior in work organizations. It is significant to note that because of the importance of human behavior in organizations. understand. and without these considerations the organizations may not be fully operational as a social entity. explain and predict human behavior in the organizational context so that it may be moulded into result-yielding situations. v) Goal-Oriented: OB is an action-oriented and goal-directed discipline. It applies broadly to the behavior of people in all types of organizations. and better manage human behavior. The exact prediction of behavior of people in organizations is also not possible. does not take human being in isolation but as the product of socio-psychological factors. The application of behavioral knowledge and skills clearly learns towards being an art. it is not likely. There is an acceptance of the value of the individual as thinking. Behavioral science. ii) A Field of Study: OB is a field of study backed by a body of theory.Introduction to Organizational Behavior (Chapter 1. It is the organization’s responsibility to provide congenial climate in the organization so that people may get need satisfaction and the organization may attain its objectives. while analyzing organizational behavior. For this purpose. such as businesses. It cannot provide specific answers to all organizational problems. being an applied science and emphasizing human aspect of the organization. Although that scenario is possible. . Features/ Nature of Organizational Behavior The essential characteristics of organizational behavior are as follows: i) An Integral Part of Management: OB is a part of general management and not the whole of management. ix) Humanistic and Optimistic: OB focuses the attention on people from humanistic point of view. sociology and anthropology. The major goals of organizational behavior are to understand. productive. research and application associated with a growing concern for people at the workplace. organization behavior is not an exact science like physics or chemistry. x) Oriented towards Organizational Objectives: OB. It provides a rational thinking about people and their behavior. OB has assumed the status of a distinct field of study. is oriented towards organizational objectives. Thus man’s nature is quite complex and OB by applying systems approach tries to find solution of this complexity. iv) Levels of Analysis: OB involves three levels of analysis of behavior – individual behavior. vii) Science and Art: OB is both a science as well as an art. government. It helps in understanding and predicting the behavior of individuals. his behavior can be analyzed keeping in view his psychological framework. it should not be understood that OB only emphasizes the achievement of individual objectives at the cost of organizational objectives.1) B-3 Some people may fear that the tools of organizational behavior will be used to limit their freedom and take away their rights. It is possible to predict relationships between variables on a broad scale. Every employee in the organization wants to fulfill his needs through organizational activities. feeling organism. Further. However. but it is difficult to apply predictive models in all situations. group influence. The systems approach is an integrative approach which takes into account all the variables affecting organizational functioning. viii) Satisfaction of Employees’ Needs: OB seeks to fulfill employees’ needs and aspirations. there is a need to describe. What makes it a field in its own right is the attempt to integrate various aspects and levels of behavior. It represents behavior approach to management. Managers need to remember that organizational behavior is a human tool for human benefit. iii) Inter-Disciplinary Approach: The field of organizational behavior is heavily influenced by several other behavior sciences and social sciences. interpersonal orientation. Thus. and service organizations. xi) Total Systems Approach: OB is a total systems approach wherein the living system of an organization is viewed as an enlargement of a man. In fact. creative. In fact. Thus. OB tries to integrate two types of objectives so that both are achieved simultaneously. schools. and capable of contributing positively to the objectives of the organization. The prominent among these are psychology. Though an organization may have several objectives and sometimes conflicting with individual objectives. Organizational behavior draws a rich array of research from these disciplines. both organization and individuals can be benefited by each other.

That system consists of individuals and groups. for the purpose of applying such knowledge toward improving an organization’s effectiveness. The efforts of the people are co-ordinated by the structure of authority-responsibility relationships. and structure have on behavior within organizations. which means that employees bring a wide array of educational backgrounds. The structure relates to authority-responsibility relationships. sociology and anthropology for the study of human behavior in and around organizations. or the day before. . 2) Understanding Human Behavior in an Organizational Setting Organizational behavior is concerned with understanding and describing human behavior in an organizational setting. It is the field of study that integrates behavioral sciences like psychology. Determinants of Organizational Behavior / Key Forces Affecting OB / Elements of OB How people behave in an organization under a given situation is the concern of organizational behavior. These elements interact with the external environment and are influenced by it. It seeks to shed light on the complex human factor in organizations by identifying causes and effects of human behavior. People • Individual • Group Environment • Government • Competition • Social pressures Structure • Jobs • Relationships Organizational behavior Technology • Machinery • Computer hardware and software Key Forces Affecting Organizational Behavior 1) People: People make up the internal social system of the organization. and perspectives to their jobs. and to be prepared to adapt to them. talents. Organization structure leads to division of work so that people can perform their duties to accomplish the organizational goals. involves four key elements.” 1) Increasing Organizational Effectiveness: Organizational behavior is a field of study. Different people in the organization are given different roles and they have certain relationships with others. Groups are dynamic. The knowledge of all these is applied to make the organization work more effectively. groups. structure. The human organization of today is not the same as it was yesterday. groups and structure. thus. Managers need to be tuned into these diverse patterns and trends. In particular. It is relatively a new discipline which has a distinct area of expertise with a well-defined body of knowledge. the workforce has become richly diverse. people. different duties are to be performed by different people. technology and the environment in which the organization operates. The behavior of individuals and groups and the impact of structural design on the behavior of individuals and groups are the major concern of organizational behavior. People use some technology to produce goods and services to achieve their goals. Under the structure. OB studies three determinants of behavior in organizations: individuals. 2) Structure: Structure defines the roles and relationships of people in an organization. It is called a social science because its main concern is people and their behavior. Robbins as follows: “OB is a field of study that investigates the impact that individuals. We can call people. We must remember that organizations exist to serve people. All are related to each other to accomplish the goals in a co-ordinated manner. People join an organization to achieve certain objectives. There are unofficial. peons or workers. rather than people existing to serve organizations. Some may be managers others may be supervisors.P. clerks. structure and technology as the internal organizational elements.B-4 Thakur’s MBA First Semester HB (Organizational Behavior) Scope of Organizational Behavior The scope of OB may be summed up in the words of the S. and large groups as well as small ones. The study of organizational behavior. informal groups and more official. formal ones.

so they build buildings. “I react not to an objective world. cannot escape being influenced by this external environment. not statistical. such as government. two people may view it in two different ways. These concepts are priorate. In the discipline of Accountancy the fundamental concept is “for every debit entry there will be a credit entry. as far as we know. in which people tend to pay attention to those features of their work environment which are consistent with or which reinforce their own expectations.Introduction to Organizational Behavior (Chapter 1. Essentially each person seems to be saying. Selective perceptions can not only cause misinterpretations of single events at work. It must be considered in the study of human behavior in organizations. Their views of their objective environment is filtered by perception. design machines. Individual organizations. just as each person’s DNA profile is different. Each person is different from all others. organizes. Individual differences mean that management can motivate employees best by treating them differently. such as a factory or a school. A single organization does not exist alone. which have to be accepted and not questioned. but each person in the world is also individually different. The great benefit of technology is that it allows people to do more and better work. They are the foundation stones on which the entire edifice of the discipline is developed. create work processes. Fundamental Concept of Organizational Behavior Every discipline of study has certain set of fundamental concepts. probably in millions of ways.” Individual Differences Whole Person OB Caused Behavior Human Dignity Holistic Concept Mutuality of interest Social Systems Foundation of OB The discipline of Organizational Behavior has fundamental concepts revolving round the (a) nature of people and (b) the nature of the organization. 1) The Nature of People With regard to people. Even when presented with the same object. Individual differences require that a manager’s approach to employees be individual. All people are different. Numerous changes in the environment create demands on organizations. The technology used has a significant influence on working relationships. and interprets things. which is the unique way in which each person sees. It influences the attitudes of people. values. They tend to act on the basis of their perceptions. It is part of a large system that contains many other elements. affects working conditions.” This way of reacting leads to the process of selective perception. and this diversity needs to be recognized and viewed as a valuable asset to organizations. and other organizations. and provides competition for resources and power. but also lead to future rigidity in the search for new experiences. ii) Perception: People look at the world and see things differently. there are six basic concepts: i) Individual Difference: People have much in common (they become excited by the arrival of a new child in the family or they are grieved by the loss of a loved one). They do not lend themselves to the question ‘why so’. They cannot accomplish much with their bare hands. And these differences are usually substantial rather than meaningless. but it also restricts people in various ways. . and assemble resources. but to a world judged in terms of my own beliefs. They are something. People use an organized framework that they have built out of lifetime experiences and accumulated values. This belief that each person is different from all others is typically called the law of individual differences. and expectations.1) B-5 3) Technology: Technology provides the resources with which people work and affects the tasks that they perform. It has costs as well as benefits. the family. 4) Environment: All organizations operate within an internal and an external environment.

These may relate to a person’s needs and/or the consequences that result from acts. or the belief that one has the necessary capabilities to perform a task. people at work are governed by the same psychological principles both inside and outside organizational life. mutuality creates a triple reward system in which individual. They are learning. People find more satisfaction in work when there is cooperation and teamwork. organizational behavior is dynamic in nature. and contributing. which are: i) Organizational Behavior Follows the Principles of Human Behavior: Human beings in the organization are governed by the same physiological mechanisms both on and off the job. Organizational behavior is human behavior in a particular setting. It is a symbiotic relation. They refuse to accept the old idea that they are simply economic tools. a path toward increased need fulfillment is the better approach. It is a part of the society and consists of people who are social beings. growing. whether this stress is job or nonjob related. A person’s family life cannot be separated from his or her work life. They not only strive hard to develop a better employee out of a worker. 2) The Nature of the Organization i) Organization is a Social System: An organization is a social system which co-ordinates the activities of its members for the achievement of common goals. ethical treatment is necessary. people want to be treated with respect and dignity. Organizations need to provide opportunities for meaningful involvement. his/her social background. organizations must treat employees in an ethical fashion. a practice which will result in mutual benefit for both parties. The organization is also more successful. A conceptual framework for understanding organizational behavior is presented by Dubrin consisting of four core propositions. Internal mechanisms provide people an extra spurt of the appropriate harmone during times of stress. Organizations have a human purpose. A change in the social system is reflected in the organizational behavior through the behavior of individuals and groups. Mutual interest provides a super-ordinate goal—one that can be attained only through the integrated efforts of individuals and their employers. because it operates more effectively. but also a better person in terms of growth and fulfillment. When the organization’s goals and actions are ethical. They are formed and maintained on the basis of some mutuality of interests among the participants. publicized positive role models.B-6 Thakur’s MBA First Semester HB (Organizational Behavior) iii) Whole Person: When an individual is appointed. ii) Mutuality of Interests: Organizations need people. Clearly. Similarly. More and more firms are recognizing this need and are responding with a variety of programs to ensure a higher standard ethical performance by managers and employees alike. In the case of needs. To succeed. and people need organizations. people are motivated not by what we think they ought to have but by what they. People have many psychological needs and play different types of roles. or it can threaten decreased need fulfillment if they follow an undesirable course of action. vi) Human Dignity: Because of a higher order. pride and prejudices-are also hired. organizational. It can show them how certain actions will increase their need fulfillment. iii) Ethics: In order to attract and retain valuable employees in an era in which good workers are constantly recruited away. v) Desire for Involvement: People wish to feel good about them. Both the employees and organization can prosper if they help each other to prosper. but they are still controlling. but also by the groups of which they are members. ethical philosophy is involved in one way or another in each action they take. It is for this reason that managers should endeavor to make the workplace a home away from home. This fact leaves management with two basic ways to motivate people. themselves want. make a meaningful contribution. Organizations help people achieve their own personal objectives at the same time people help organizations achieve its objectives. They want to be valued for their skills and abilities and to be provided with opportunities to develop themselves. The concept tells that every person should be respected simply because he happens to be an employee just as the manager is. or meet challenging situation successfully. Companies have established codes of ethics publicized statements of ethical values. and social objectives are all met. a person’s needs may be unrealistic. Motivation is essential to the operation of organizational. iv) Caused Behavior: From psychology we learn that normal behavior has certain causes. Everybody must bear in mind that the organizational and employees interests are intertwined in such a way that if the interests of one suffer the interests of another do suffer. They have began to recognize that since organizational behavior always involves people. his/her skill alone is not hired. Conceptual Framework for Organizational Behavior Organizational behavior consists of a very broad body of knowledge with permeable boundaries. . provided ethics training. likes and dislikes. They hunger for the chance to share what they know and to learn from the experience. and set up internal procedures to handle misconduct. This desire is reflected in their drive for self-efficacy. That is why. Their behavior is influenced not only by their individual drives. fulfill role expectations. rewarded employees for notable ethical behavior. To an outside observer.

Organization behavior is a useful tool of understanding human behavior in all the directions in which human beings interact. 3) Effective Communication: Behavioral sciences help in improving communication in the organization. Therefore. Organizational behavior integrates these factors to understand individual behavior. Changes in any part of the system have both known and unknown consequences in other parts of the system. Human behavior can be studied at the individual level. yet employees sometimes find other processes for handling them. the pressures placed upon him in a given situation must be understood. By studying the behavioral sciences. ii) Inter-Personal Behavior: Inter-personal interaction takes place because of individual’s natural desire of socialization. groups and management. inter-personal level. iii) Group Behavior: An individual behaves differently as an individual and as a member of the group as revealed by Hawthorne Studies. study of group dynamics has assumed greater importance in organizational behavior. for example. His behavior is often modified by group norms. it helps in understanding and managing human behavior as discussed below: 1) Understanding of Self and Others: The behavioral sciences help an individual understand himself and others better. positive consequences. effective leadership and building high morale. The communication process and how it works in interpersonal dynamics is evaluated by behavioral sciences. Of particular significance are topics like attitude. etc. they are called functions. When modifications in the system lead to desired. iii) Organizational Behavior is Based on System Approach: System thinking is an integral part of modern organization theory. why people join groups and how groups exert pressures on the individuals. surfaces when a normally calm individual is forced into constant and close physical proximity with other people. transactional analysis. He can use suitable incentives to motivate the subordinates. social and cultural factors. leadership. with or without the structure. Processes emerging within a group or organization are often evident only after they are heading towards completion. To achieve organizational effectiveness. the communication must be effective. The analysis of factors that influence communication will suggest measures to make communication effective. every interaction has both functions and dysfunctions. It is communication through which people come in contact with each other. Organizations are viewed as complex systems consisting of inter-related and inter-locking sub-systems. Need of Studying Organizational Behavior/Importance of Organizational Behavior Organizational behavior is an exciting field of study. an individual can understand himself and others better. Behavioral sciences provide means for understanding the interpersonal relations in the organization. Human behavior is affected by a number of psychological. Specifically. A retail store may use both formal advertising and public relations functions (structure) to help build its image in the community. However. Organizational behavior will help the manager understand the needs and desires of the subordinates and other forces. Aggressive behaviors. According to the systems point of view. perception. .1) B-7 ii) Organizational Behavior is Situational: Psychologists and other behavioral scientists have emphasized for years that individual behavior is a function of the interaction between personal characteristics of the individual and environmental variables. and group level and inter-group level as discussed below: i) Individual Behavior: The main focus of psychology is the study of individual behavior.Introduction to Organizational Behavior (Chapter 1. It is almost structural requirement in any organization that managers deal with the discontents of their people. This will improve interpersonal relations considerably. which affect their motivation. iv) Organizational Behavior Represents a Constant Interaction between Structure and Process Variables: Structure refers to organizational design and positions. Understanding of inter-personal behavior is facilitated by the study of attitude. An understanding of these will be very helpful to the individual in shaping his personality and dealing with others effectively. Process refers to what happens. He will be successful in his job when he can motivate his subordinates to work for organizational goals. perception. most of the store’s image is formed by words of mouth from satisfied and dissatisfied customers and employees (process variables). In order to understand a person’s behavior. role analysis. which can help the managers in effective handling of human resources for the realization of organizational goals. communication. Management can use group dynamics for better communication. It tries to analyze why and how an individual behaves in a particular way. transactional analysis and conflict. Unintended consequences in response to modifications in the system are called dysfunctions. 2) Motivation of Human Resources: The job of a manager in an organization is to get things done through others. It helps in knowing how groups are formed. This will help him to improve interpersonal relations considerably.

The concept implies that for any situation there is an optimum amount of a desirable practice. and better equipments for the job are viewed as only a small effort in creating a sound organization climate. They lack self-discipline and self-respect. Satisfactory working conditions. It states that at some point. In other words. the person who pushes production outputs without regard for employee needs is misapplying organizational behavior. not replace them. The benefits of change should be highlighted and information should be shared with all those likely to be affected by the change. 6) Introduction of Change in the Organization: Change is the law of nature. concern for people can be misapplied by overeager partisans until it becomes harmful. such as recognition or participation. Sound organizational behavior should help achieve organizational purposes. It cannot substitute for poor planning. inept organizing. Some people. in spite of their good intentions. Changes are often resisted by the organizational members. diminishing returns. 2) The Law of Diminishing Returns Overemphasis on an organizational behavior practice may produce negative results. When that point is exceeded. as indicated by the law of diminishing returns. To assume that the objective of OB is simply to create a satisfied workforce is a mistake. 1) Behavioral Bias People who lack system understanding and become superficially infatuated with OB may develop a behavioral bias. Similarly. Moreover. increases of a desirable practice produce declining returns. The law of diminishing returns in organizational behavior works in a similar way. Change can be introduced through group dynamics and by proper education of employees through effective communication. Limitations of Organizational Behavior Improved organizational behavior will not (by itself) solve unemployment. the fact that a practice is desirable does not mean that more of it is more desirable. It is only one of many systems operating within a larger social system. or inadequate controls. higher bonus. They become content. There are three major limitations of OB (behavioral bias. eventually zero returns. so overwhelm others with care that the recipients of such care are emotionally smothered and reduced to dependent—and unproductive—indignity. As happened with scientific management years ago.8 It is a limiting factor in organizational behavior the same way that it is in economics. They find excuses for failure rather than take responsibility for progress. social. After a certain point.B-8 Thakur’s MBA First Semester HB (Organizational Behavior) 4) Effective Organizational Climate: Behavioral sciences suggest the creation of organizational climate in totality rather than merely improving the physiological conditions or increasing employee satisfaction by changing isolated work-process. This problem can be successfully handled by the use of behavioral science knowledge. The person who ignores the needs of people as consumers of organizational outputs while championing employee needs is misapplying the ideas of organizational behavior. political and other environment. adequate compensation. it is not always because of denial of promotion or poor work environment. Behavioral bias can be so misapplied that it harms employees as well as the organization. two-way communication. It will not make up for our own deficiencies. Organizational behavior helps understand the causes of poor industrial relations in the organization and suggest suitable measures for their improvement. relations between management and employees are quite often strained for reasons. Reluctance of the management to talk to union leaders about workers’ problems might provoke them to give a strike call. The added output eventually may reach zero and even continue to decline when more units of input are added. Concern for employees can be so greatly overdone that the original purpose of bringing people together—productive organizational outputs for society— is lost. a better canteen or entertainment facilities. the basic issue may not be a demand for more wages. . which gives them a narrow viewpoint that emphasizes satisfying employee experiences while overlooking the broader system of the organization in relation to all its publics. In economics the law of diminishing returns refers to a declining amount of extra outputs when more of a desirable input is added to an economic situation. and then negative returns as more increases are added. If an employee is slow in his work. and unethical manipulation). for that goal will not automatically translate into new products and outstanding customer service. if the union gives a strike call. there is a decline in returns. 5) Good Human Relations: Organizational behavior can be useful to achieve and maintain cordial relations in the organization. Of greater importance are the creation of an atmosphere of participative leadership. Sound organizational behavior recognizes a social system in which many types of human needs are served in many ways. which are psychological and not rational. congenial relations with others at the work-place. not fulfilled. the output from each unit of added input tends to become smaller. and the like. In other words. the opportunities for the realization of personal goals. Organizations have also to undergo changes as a result of technological.

but in general early ideas were applied in a universal manner. People who lack respect for the basic dignity of the human being could learn organizational behavior ideas and use them for selfish ends. and then it tries to create a climate in which they may contribute to the limits of their improved abilities. Furthermore. Behavioral ideas were supposed to apply in any type of situation. creativity. and the different variables may require different behavioral approaches. iii) Cost-benefit Analysis: In addition to economic costs and benefits. the human resources approach means that better people achieve better results. the knowledge and techniques of this subject may be used for negative as well as positive consequences. Situations are much more complex than first perceived. One example was the belief that employee-oriented leadership should consistently be better than task-oriented leadership. and to divide work. Why does the law of diminishing returns exist? Essentially. The human resources approach. the new knowledge that is learned about people becomes a dangerous instrument for possible misuse. Without ethical leadership. open system. 3) Unethical Manipulation of People A significant concern about organizational behavior is that its knowledge and techniques can be used to manipulate people unethically as well as to help them develop their potential. As the field of organizational behavior developed. They could use what they know about motivation or communication in the manipulation of people without regard for human welfare. An occasional exception might be admitted. is supportive. The correct way applied regardless of the type of organization or situation involved. . human and social costs and benefits of an activity will be analyzed in determining whether to proceed with the activity. it is a system concept. There was a correct way to organize. more system-oriented. 2) Contingency Approach: The contingency approach also is more interdisciplinary. As the general population learns more about organizational behavior. many of its followers initially supported the concept of universality. In the traditional approach. although that variable is desirable. ii) Open Communication: The organization will operate as a two-way. with open receipt of inputs from people and open disclosure of its operations to them. It seeks to improve the human environment and help people grow toward their potential. but an excess can be reached with nearly any practice. because people are the central resource in any organization and any society. Work satisfaction also will be a direct result when employees make fuller use of their abilities. more responsible people. Ethical leadership will recognize such principles as the following: i) Social Responsibility: Responsibility to others arises whenever people have power in an organization. However. it tends to restrict the operating benefits of other variables so substantially that net effectiveness declines. It helps employees become better. which means that different situations require different behavioral practices for greatest effectiveness. This relationship shows that organizational effectiveness is achieved not by maximizing one human variable but by combining all system variables together in a balanced way. The facts state that when an excess of one variable develops. People who lack ethical values could use people in unethical ways. It assumes that expanded capabilities and opportunities for people will lead directly to improvements in operating effectiveness. on the other hand. Management was directive and controlling. Nevertheless. Essentially. The more accepted view in the twenty-first century is that few across-theboard concepts apply in all instances. For example. Management principles were considered to be universal. but the idea applies so widely that it is of general use. The philosophy of organizational behavior is supportive and oriented toward human resources. It is concerned with the growth and development of people toward higher levels of competency. so it is no special limitation of organizational behavior. The nature of the human resources approach can be understood by comparing it with the traditional management approach of the early 1900s. we must be cautious so that what is known about people is not used to manipulate them. This possibility is true of knowledge in almost any field. Traditional management searched for principles to provide “one best way” of managing. and more research-oriented than the traditional approach. whatever the circumstances. it will be more difficult to manipulate people. but the possibility is always there.Introduction to Organizational Behavior (Chapter 1. too much security may lead to less employee initiative and growth. That is why society desperately needs ethical leaders. Basic Approaches of OB 1) Human Resources (Supportive) Approach: The human resources approach is developmental.1) B-9 Diminishing returns may not apply to every human situation. The result is the contingency approach to organizational behavior. to delegate. the exact point at which an application becomes excessive will vary with the circumstances. The possibility of manipulation means that people in power in organizations must maintain high ethical and moral integrity and not misuse their power. Thus it helps managers use in the most appropriate manner all the current knowledge about people in organizations. managers decided what should be done and then closely controlled employees to ensure task performance. It applies because of the complex system relationships of many variables in a situation. and fulfillment.

productivity is improved. Productivity often is measured in terms of economic inputs and outputs.B . Models of Organizational Behavior Meaning and Overview Organizational behavior is concerned with understanding. iii) There are many subsystems contained within larger systems. Models are framework of descriptions of how things work and are also known as paradigms. so this results orientation is a common thread woven through organizational behavior. we move from the individual level to the organizational systems level. “Organizational behavior is the field that seeks knowledge of behavior in organizational settings by systematically studying individual. in response to expectations of the organization. organizational behavior focuses on three levels of analysis. often against a predetermined standard. (ii) groups. predicting and regulating human behavior in organizations. ii) The parts of a system are interdependent (one part affects many others parts and is affected by many in a complex way). and uses feedback to adjust itself). vi) Systems produce both positive and negative results. Or if fewer inputs can be used to produce the same amount of outputs. a valuable social result occurs. The fundamental elements of the systems approach include: i) There are many variables within a system. 4) Systems Approach: Treating an organization as a system is critically important to its success. The individual is a central feature of organizational behavior and a necessary part of any behavioral situation. whether acting in isolation or as part of a group. For Example: If better organizational behavior can improve job satisfaction. v) The input-process-output mechanism is cyclical and self-sustaining (it is ongoing. viii) The consequences of systems may be short-term. is a ratio that compares units of output with units of input. productivity has increased.” Thus. Productivity. a human output or result occurs. and produce outputs. A dominant goal for many is to be productive. If more outputs can be produced from the same amount of inputs. and Job satisfaction 4) Motivation 5) Learning Group Behavior 1) Group Dynamics 2) Teamwork 3) Power and Politics 4) Communication 5) Leadership 6) Decision-Making Organization Factors 1) Organization Theory 2) Organization Design and Structure 3) Organizational Culture 4) Organizational Effectiveness Basic OB Model Figure : Basic OB Model According to Greenberg and Baron. but human and social inputs and outputs also are important. and (iii) organization. It propose that there are three levels of analysis in OB and that .. each level is constructed on the previous level Human Behavior Organization System Level Group Level Individual Level OB at Different Levels Individual Behavior 1) Perception 2) Personality Attitudes 3) Values. group and organizational processes. viz. when employee development programs lead to a by-product of better citizens in a community. Organizational Behavior . 1) Behavior at the Individual Level: Organizations are made up of their individual members. at its simplest. or as a result of influence of the external environment. or results. or both. long-term. we add systematically to our understanding of blocks. Figure below presents the skeleton on which we will construct our OB Model. vii) Systems produce both intended and unintended consequences. repetitive. (i) individuals. engage in some process. iv) Systems generally require inputs.10 Thakur’s MBA First Semester HB (Organizational Behavior) 3) Results-Oriented Approach: All organizations need to achieve some relevant outcomes. In the same manner. A model describes the abstraction of reality and simplifies the representation of real life phenomenon called organizational behavior.

fire. The custodial model provides employees’ dependence on organization rather their dependence on their boss. Varying results are substantially caused by different models of organizational behavior. the things of which they are capable. The boss pays minimum wages because minimum performance is given by employees. The manager's role is one of helping employees solve their problems and accomplish their . as well as the models of others around them. Several factors influence the behavior of groups such as group goals. Therefore. It depends upon power. perception. they are well maintained and contented. However. 3) 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. At times.11 The behavior of individuals is a complex phenomenon and is affected by a large number of factors such as personality. As a result of their treatment. learning and motivation. management provides a climate to help employees grow and accomplish in the interest of the organization. The theory is based on the assumption that only management knows what is wrong and what is right and employees are to follow orders without any argument. while they may fight for change in certain situations. The result tends to be that employees do not perform much more effectively than under the old autocratic approach. Through leadership. Stress caused by the activities of individuals and groups has to be managed at the organizational. 3) Behavior at the Organization Level: An organization is a system composed of several interdependent individuals and groups. security. they may resist change. Rather than being dependent on their boss for their weekly bread. Management thinks that employees are passive and resistant to organizational needs. and effectiveness of their own models. The study of behavior of an individual working in the organization is also known as micro organizational behavior. Management’s orientation. 2) Custodial Model: Workers being managed under the autocratic model often feel insecurity and frustration. it may produce only passive cooperation. the workers feel a sense of participation and task involvement in the organization. The manager’s role is one of helping employees solve their problems and accomplish their work. Supportive behavior is not the kind of behavior that requires money. The study of behavior from the perspective of the whole organization is also referred to as macro organizational behavior. is to support the employee’s job performance. The custodial approach leads to employee dependence on the organization. That is why progressive managers felt that there must be some way to develop better employee relationships so that insecurity and frustration could be dispelled. contentment does not necessarily produce strong motivation. and it still can be useful under some conditions. Understanding of group dynamics is essential to reduce conflicts and improve morale and productivity. Those who are in command must have power to demand. rather than to simply support employee benefit payments as in the custodial approach. attitudes. OB integrates these factors to provide simplicity in understanding human behavior. their behavior pattern is also influenced by the groups to which they belong.1) B . Types of Organizational Behavior Models Organizations differ in the quality of the systems they develop and maintaining and in the results they achieve. organizational dependence. Four models of organization behavior are: 1) Autocratic Model: “Might is right” is the motto of the theory. Under autocratic conditions the employee orientation is obedience to a boss. cohesiveness. Rather. 2) Behavior at the Group Level: Though people interact with the outside world at their individual level. This is also known as meso organization behavior. it is a part of management’s lifestyle at work. Individuals and groups operate within the structure of formal organization. employees now depend on organizations for their security and welfare. whose power to hire. norms. it is highly important that managers recognize the nature. These models constitute the belief system that dominates management’s thought and affects management’s actions in each organization. Employees are to follow their boss otherwise they are to be penalized. social. They may even show aggression towards their boss and their families and neighbors. group and individual levels. communication. The model emphasizes economic reward. and “perspire” they is almost absolute. They are willing to give minimum performance—though sometimes reluctantly—because they must satisfy subsistence needs for themselves and their families. leadership.Introduction to Organizational Behavior (Chapter 1. significance. Under the supportive model. The autocratic model was an acceptable approach to guide managerial behavior when there were no wellknown alternatives. cultural and other factors. The psychological result for employees is dependence on their boss. therefore. and maintenance factors. not respect for a manager. etc. Several research studies have shown people behave differently in groups than as individuals. Employees working in a custodial environment become psychologically preoccupied with their economic rewards and benefits. It is just like theory X developed by McGregor. They participate in shaping the culture of the organization and also in organization development. reflected in the way that it deals with other people.

The managerial orientation is toward teamwork. This selfactualization will lead to moderate enthusiasm in performance. The term collegial relates to a body of persons having a common purpose. The employee response to this situation is responsibility. iv) Different models will remain in use though new model predominates as most appropriate for general use at any given time as task conditions differ from time to time and organization to organization.12 Thakur’s MBA First Semester HB (Organizational Behavior) work. As society advances on the need hierarchy. The primary area of interest is work related stress. Management is the coach that builds a better team. motivation and learning. The study of causes and consequences of stress and use of medicinal drugs to reduce stress is fast becoming an area of study within the organizational setting. Autocratic Custodial 1) Basis of Model Power Economic resources 2) Managerial Orientation Authority Money 3) Employee Orientation Obedience Security 4) Employee Dependence on Dependence on Psychological Result organization boss 5) Employee Needs Met Subsistence Maintenance 6) Performance Result Minimum Supportive Leadership Support Job performance Participation Collegial Partnership Teamwork Responsibility Self-discipline Status and Self-actualization Recognition Passive cooperation Awakened drives Moderate enthusiasm Interpretation of Different Models Various conclusions may be drawn from the study of different models as follows: i) As soon as the understanding of human behavior develops or social conditions change. because the rigid work environment made it difficult to develop there. and experimental psychology. In this kind of environment employees normally feel some degree of fulfillment. The collegial model. Contribution of Various Disciplines/Role of Behavioral Science in Management Organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines. Learning is concerned with the changes and adaptations of behavior that occur over time. Each employee should develop a feeling that he is a part of the whole and contributing something to the whole and recognizes the others contribution. 2) Medicine: Medicine is perhaps the newest field affecting organizational behavior. 4) Collegial Theory: A useful extension of the supportive model is the collegial model. even though the amount may be modest in some situations. understanding of motivation and learning would help clarify the individual behavior in the organization. The major areas researched to understand the determinants of behavior are attitudes. The collegial approach for the employee is selfdiscipline. This model has been found to be effective in affluent countries where workers are more concerned about their higher level needs affiliation and esteem. The theory is based on the principle of mutual contribution by employer and employees. Motivation refers to the mental and emotional processes that precede actual behavior under consideration. tension and depression. Management is supported to be joint contribution and not the boss. and self-actualization. The predominant areas are: 1) Psychology: The term ‘psychology’ is derived from the Greek work ‘psyche’. The reason is the focus of psychology – what determines the behavior of an individual? The attempt to answer this question in different settings has engendered a multitude of sub disciplines – industrial psychology. which embodies a team concept. This model has limited application under Indian conditions because a vast majority of operative workers are still working for the satisfaction of their physiological and security needs. . worthwhile contribution. first achieved widespread applications in research laboratories and similar work environments. which means ‘soul’ or ‘spirit’. Obviously. Modern authors define psychology as the science of individual behavior. ii) Models of organizational behavior are related to hierarchy of human needs. the model is bound to change. clinical psychology. The collegial model traditionally was used less on assembly lines. iii) Present tendency towards more democratic models of organizational behavior will continue to develop for long run.B . No one model is best for all times. Psychology has a great deal of influence on the field of organizational behavior. new models are developed to serve the higher order need that is paramount at that time.

group dynamics. and the like. social classes.Introduction to Organizational Behavior (Chapter 1. social mobility and prestige.1) B .Making Individual Culture Organizational Culture Organizational Environment Organizational Power Politics Conflicts Work Measurement Productivity Measurement Workflow Analysis and Design Labor Relations Anthropology Political Science Organizations Industrial Engineering Economics 1) 2) Government Policies Allocation of Scare Resources Major Disciplines and their Contribution to OB . Sociologists have enriched organizational behavior through their contribution to the study of interpersonal dynamics like leadership. formal and informal organization. communication. Sociology addresses itself to the study of group behavior. society. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 1) 2) 3) 1) 2) 3) 4) 5) Sociology 1) 2) 3) 4) Organizational Structures Formal and Informal Organizations Organizational Culture Organizational Change Personality Perception Attitude Learning Motivation Job Satisfaction Training Leadership Effectiveness Performance Appraisal Employee Selection Work Design Stress Tension Depression Group Dynamics Communication Leadership Power and Politics Conflict Psychology Individual Medicine Group Study of OB Social Psychology 1) 2) 3) 4) 5) 1) 2) 3) 1) 2) 3) 1) 2) 3) 4) Behavioral Change Attitude Change Communication Group Processes Group decision . institutions. It specifically studies social groups.13 3) Sociology: Sociology as an academic discipline utilizes scientific method in accumulating knowledge about the social behavior of groups. customs. social behavior. status. It studies the behavior of people in relation to their fellow human beings.

human resource planning and forecasting and decision making. patterns of communication. Good theories have to be of practical use and empirical validation confirms their worth. Industrial engineering. 8) Economics: Economics aids in the understanding of economic conditions at a given time. job design. Psychological Contract There are two types of contracts of an employee with the organization – economic and psychological. workflow analysis and design. how those cultures have functioned in the past. etc. human treatment and support in addition. etc.14 Thakur’s MBA First Semester HB (Organizational Behavior) 4) Social Psychology: Social psychology is an important branch of psychology. The contribution of social psychology to OB lies in the study of overcoming resistance to change and introduction of change in organization. The more rewarding it is. Thus. Where empirical testing does not substantiate the theories. interactions. group decision-making. so that the desired end results are achieved. which heightens their sensitivity to the innumerable variables operating in the situation. It dictates what people learn and how they behave. Implications for Managers Managers are responsible for the final outcomes by making the right decisions and playing their different roles effectively. in particular. other things being equal. thousands of research studies relating to management and organizational behavior are conducted all over the globe. they will like to withdraw from it. employee attitudes and performance and organizational effectiveness comes from systematic and scientific research inquiries. to economic reward. If employer. Value systems. They also develop valid and reliable measures to tap multidimensional abstract concepts. honors such psychological but unwritten contract. group cohesiveness. Economic contract is related to salary and other monetary rewards and psychological contracts are related to the state of individual’s psychology for the system. The themes of interest to political scientists include how and why people acquire power and such topics as political behavior. These are greatly facilitated by the knowledge of research. productivity measurement. formation of coalition. all these are important for OB. good empirical research should have its foundation in a viable theory and add to the body of existing knowledge. and how they continue to function in the present. Theory building and empirical research co-exist and reinforce each other. Its area of focus is on influence of group members on one another. the latter are modified and refined for further empirical analysis. When the hypotheses developed from the theories are substantiated empirically. Culture has significant influence on human behavior. are the concern of anthropology. . and labor relations. Arm chair theories evolved from astute observation lead to empirical testing. the results offer further scope for theory building. which states that in order for people to join and remain with the organization. which blends concepts from both psychology and sociology. marginal utility analysis. Researchers have and continue to invest substantial amounts of time to develop good theories and substantiate them. conflict behavior of interest groups. organizational change processes. websites and electronic data collection have considerably facilitated the conduct of research. technique and behavior to fit the situation. cost-benefit analysis. It also studies changes in attitude and behavior of groups. The psychological contract is governed by exchange theory. allocation of scarce resources to different competing alternatives. Obviously. Likewise.B . 7) Engineering: This discipline. Much of what we know about effective managerial styles. organization will be favored with higher productivity. has influenced OB. too. sentiments. Organizational behavior has learned a great deal from such economic factors as labor market dynamics. The effective management of organizational behavior is not an exact science but an interesting challenge facilitated by a good knowledge of the theories and research findings. 6) Political Science: Political science has also contributed to the understanding of OB. etc. Being knowledgeable about the theories developed and their validation through empirical studies helps the experienced and intelligent manager to wisely assess the significant variables operating in the environment and then match his or her style. Anthropology contributes a lot in understanding the cultural effect on OB. the benefits they receive must be more than their cost. He works hard with loyalty and expects security. and all these factors affect the organizational climate. intranet. norms. 5) Anthropology: Anthropology studies the origin and development of human cultures. has long been concerned with work measurement. economic policies of the government. group decision-making. the more money they will be attached to the organization and support it. The Internet. Research on Organizational Behavior With the availability of computer technology. This information is very useful in understanding the behavior of individuals and groups in organizations. If it is not so or they feel that the exchange relationship is not rewarding.

. Luthans identifies at least six specific trends relevant to the fields of OB: 1) Declining Productivity and the Japanese Threat: The challenge is to reverse declining trends. institutions and geographic locations.). instead of taking a simplistic approach. 5) Union-Management Cooperation: Growing competition. Future Prospect of OB Based on the above trend analysis. etc.15 Managers would be able to solve the problems they encounter based on the findings of published research studies. The effective management of human resources is really what HR & OB are all about. management leadership.e. job design. the challenge is to understand whether the management and the union can establish a mutually beneficial. revolution in the way organizations are structured and the way the managers’ function. job conflict and stress. having built-in mechanisms for employee participation. the study of OB and the application of HR in the identical areas covered by them produce more efficient human resource managers. there is an increasing use of innovative approaches: flexitime and four-day (40-hour) weeks.e. Based on a systematic analysis of past and current events. Through an understanding of the nature of scientific studies. iii) There will be a movement in the topical coverage of the fields (i. restructuring and redefining the roles of those who are left out. win-win relationship. .1) B .. ensuring better interplay between management approaches and techniques. perception. the following future prospects of OB can be inferred: i) OB has reached the status of identifiable fields of study and applications respectively. f) Acceptance of computers as liberators rather than as tyrants and slave drivers. product and service obsolescence and globalization have immense effects on organizations. Naisbitt predicts the following ‘megatrends’ which appear relevant to the study of OB a) Conversion of an industrial society into a society based on knowledge and information. knowledge explosion. groups. organizational development. regular leave time and holiday time and utilizing it in any other way or encashing it). emphasis on knowledge and skills of people in manufacturing and marketing. Conclusively. ii) OB can clearly be distinguished from other areas. 2) Revolution in Middle Management: A big cut in the middle management cadre. personality and group dynamics. organizational power and politics. with explicit implications for human resource management in complex organizations. job sharing (two or more people share a job and determine their schedules themselves) and personal time-bank plan (saving sick leave time. they would be able to generalise the findings to their own setting.Introduction to Organizational Behavior (Chapter 1. and employees. OB Modification (OB Mod). political and social institutions. iv) The trend of making OB more application oriented will continue. This legitimate recognition as academic (OB) and applied (HR) fields is likely to be reinforced in future. b) High level of diversity among people. with increasing exposure to high technology. Based on the above ‘megatrends’. government. e) Replacement of the traditional 'top-down' corporate authority system with the innovative ‘bottom-up’ system.e. etc. g) Reliance on personal contacts and human relationships. Trends in Organization Behavior The social and technological changes. especially needed for the 21st century. accomplishment of a balance between technology and human contacts. There will be an increased interplay of macro-structural variables and the environment in these fields. i. d) Reduced dependence on institutions and movement towards old-fashioned self-reliance. such as general management and personnel administration. 6) Innovative Plans for Special Career Needs: With more dual-career families and growing concern for quality of work life. Recognition of the concept of multicausality opens their eyes to the innumerable factors they have to contend with. 4) Equal Opportunities Far Minorities and Women: Need for research on minorities and women in management. arising from globalization. 3) Computerized Offices and Factories: The use of personal computers.) to those more specifically identified with OB per se (i. c) Decentralization of business. generates unionmanagement cooperation.

Managing in a global economy poses many challenges and opportunities. he might have to manage the workers who belong to different cultures. In this case also. This in itself is a challenge for organizations as. at a macro level. lifestyle preference. Whereas globalization focuses on differences between personnel from different countries. When workforce diversity is managed properly. Thus. So does the availability of natural resources and components of the infrastructure. They also affect the nature of supervisory relationship. there would be better communication. Many foreign multinational corporations have brought technology and capital into India and are now competing among themselves and with the Indian firms. backward classes. better human relations and congenial work culture in the organization. India which is also a member of the World Trade Organization (WTO) has also removed most of the barriers 10 trade which has paved the way for free competition.e. as well as the role of government in business. Barriers to trade between different countries have been reduced to a great extent. 2) Workforce Diversity Another serious challenge that managers face involves workforce diversity. For example. Globalization Increasing Quality Consciousnes s Managing Change Ethics and Social Responsibility Challenges of OB Workforce Diversity OB Challenges Changed Employee Expectations . workforce diversity has significant implications for the management.B . a very important consideration is how behavioral processes vary widely across cultural and national boundaries. Some of the more critical issues confronting managers for which OB offer solutions – or at least some meaningful insights toward solutions are discussed below. of the diverse groups. globalization has posed both challenges and opportunities for the managers.16 Thakur’s MBA First Semester HB (Organizational Behavior) Challenges and Opportunities for OB There are a lot of challenges and opportunities today for managers to use OB concepts. It was assumed that people who were different would somehow assimilate with the majority group. more and more women have been joining the organizations in India and women executives have also been occupying important positions at the middle and top levels in the organizations. Thus. Similarly. The global managers must work to understand the local culture and the behavioral forces that affect the workforce in order to manage the workers more effectively. and organizational configurations. responses to stress. retired defense personnel. and the nature of political behavior also differ from culture to culture. Group and inter-group processes. decision-making styles and processes. For instance. Therefore. it is desirable to recognize and value such differences by adapting management practices to different life and work styles. reduce labor turnover and avoid any sort of discrimination. workforce diversity addresses differences among people within the same country. the manager will have to learn to adapt his management style to deal effectively with such workers. the Indian society has been male dominated. i. physically disabled persons. Even if the global manager is working in his own country. values and beliefs differ sharply among cultures and these shape patterns of work-related behavior of the workers to a great extent. 1) Globalization of Business There is no denying the fact that the world economy is becoming increasingly global in character. The managers will be required to shift their approach fro treating each group of workers alike to recognizing differences among them and following such policies so as to improve productivity. etc. ethnic groups etc. beliefs. For our purposes. when they come to work. the increasing heterogeneity of organizations with the inclusion of workers from different groups such as women. Earlier. But it is now recognized that employees don't set aside their values.. one has to master the art of interacting with bosses and peers belonging to different cultures. the managements followed melting pot approach to differences in workforce. property ownership arrangements vary widely in different countries. etc. Norms. Several Indian firms have opened their subsidiaries in foreign countries and have also entered into alliance with local companies in foreign countries. traditionally.

there is increased emphasis on quality of products and services. Therefore. that too at competitive cost. and can even gain knowledge about work methods. Various trade associations and chambers of commerce and industry have developed codes of ethics for their member-organizations to increase the credibility of business. six sigma standard. the managers have to adopt suitable practices to ensure that employees accept change willingly and become part of the mission of spreading quality consciousness throughout the organization. Ethics denote the socially accepted beliefs about what is right and wrong or good and bad.1) B . Because of increased emphasis on quality. suppliers. 4) Increasing Quality Consciousness Because of increased competition. And human resources are keys to successful introduction of any change. Expectations of equality are breaking up the traditional relationships between employees and owners. and frauds. As workmen are given more control over their jobs. to improve organizational effectiveness.. From the point of view of social responsibility. customers. both on the shop floor as a well as in boardrooms. organizations have to change not only their technology but way of their working. Social responsibility is the organization’s obligation to protect and contribute to interests of various stakeholders such as investors and owners. employee expectations and attitudes have also changed. Traditional allurements such as job-security. Bombay stock scam. Today. organizations must plan and implement change to survive and grow. Bofors gun deal. the buzz words in quality are total quality management. agents' or 'facilitators of change'. etc. attractive remuneration.) has increased public sensitivity about them. as is the complexity of the environment within which they must operate. Empowerment also means that the worker can bring his or her children to the workplace. not because they will do a bad job. increasing attention has been focused in the recent years on business obligation to help avoid pollution. . both from indigenous as well as from foreign organizations. housing. demands and expectations placed on managers and their organizations are greater than ever before. Empowerment results in redefining jobs. clearly defining ethical behavior and social responsibility is a great challenge. Nevertheless it is expected of managers to create an ethically healthy climate for their subordinates where they can perform their duties efficiently and confront a minimal degree of ambiguity regarding what constitutes good and bad behavior. Bihar fodders scam. look around. They must play the role of 'change. and quality certification. Many organizations today are taking steps to enhance the ethical standards of their employees and to avoid legal and/or public opinion problems. 5) Managing Change Nothing is permanent except change. etc. in business are not really new.Introduction to Organizational Behavior (Chapter 1. it has now become a fact of everyday life for everyone in the business world. retain or motivate today's workforce. but because there shall be no need for them.17 3) Changed Employee Expectations With the changes in workforce demographics. kaizen (improvement upon improvement). 6) Ethics and Social Responsibility Although scams.g. In the contemporary environment. Previous notions on managerial authority are giving way to employee influence and involvement along with mechanisms for upward communication. society. Such a change results into behavioral problems in employees as they perceive that such a change would affect them adversely. scandals. However. While in the past managers might have seen change as something that must be addressed periodically. media attention focused on them in recent years (e. government. Employees today demand empowerment and expect quality of status with the management. and the like do not attract. Tehlaka dot com. There is also increased concern for carrying out social responsibility by the managements of business organizations. This is a privilege enjoyed till now only by owners of enterprises whose children can access even vital documents. The challenge before managers is to prepare organizational members for change. As a result. and contribute to social causes. a whole class of supervisors may become redundant. employees.

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