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A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization's effectiveness. OB "studies three determinants of behavior in organizations: individuals, groups, and structure. In addition, OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively"
A NEW PERSPECTIVE FOR MANAGEMENT Management is generally considered to have three major dimensions—technical, conceptual and human. The technical dimension consists of the manager's expertise in particular functional areas. They know the requirements of the jobs and have the functional knowledge to get the job done. But the practicing managers ignore the conceptual and human dimensions of their jobs. Most managers think that their employees are lazy, and are interested only in money, and that if you could make them happy in terms of money, they would be productive. If such assumptions are accepted, the human problems that the management is facing are relatively easy to solve. But human behavior at work is much more complicated and diverse. The new perspective assumes that employees are extremely complex and that there is a need for theoretical understanding given by empirical research before applications can be made for managing people effectively. MODERN APPROACH TO ORGANIZATIONAL BEHAVIOUR The modern approach to organizational behavior is the search for the truth of why people behave the way they do. The organizational behavior is a delicate and complex process. If one aims to manage an organization, it is necessary to understand its operation. Organization is the combination of science and people. While science and technology is predictable, the human behavior in organization is rather unpredictable. This is because it arises from deep needs and value systems of people. HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOUR Scientific Management Approach Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century. This theory supported the use of certain steps in scientifically studying each element of a job, selecting and training the best workers for the job arid making sure that the workers follow the prescribed method of doing the job. It provided a scientific rationale for job specialization and mass production. His assumption was that employees are motivated largely by money. To increase the output, Taylor advised managers to pay monetary incentives to efficient workers. Yet, his theory was criticized by many employers and workers. Workers objected to the pressure of work as being harder and faster. Critics worried that the methods took the humanity out of labor, reducing workers to machines responding to management incentives. Therefore, Taylor's view is now considered inadequate and narrow due to the points given by the critics. Bureaucratic Approach While scientific management was focusing on the interaction between workers and the task, me researchers were studying how to structure the organization more effectively. The theory's most prominent advocate, Max Weber, proposed a 'bureaucratic form' of structure, which he thought would work for all organizations. Weber's idea! Bureaucracy was, logical, rational and efficient. He made the immature assumption that one structure would work best for all organizations. Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized the behavioral side of management. However, they did not emphasize the human dimensions. Although there were varied and complex reasons for the emerging importance of behavioral approach to management, it is generally recognized that the Hawthorne studies mark the historical roots for the field of organizational behaviour. Hawthorne Studies Even, as Taylor and Weber brought attention with their rational, logical approaches to more efficient productivity, their views were criticized on the ground that both approaches ignored worker's humanity. The real beginning of applied research in the area of organizational behaviour started with Hawthorne Experiments. In 1924, a group of professors began an enquiry into the human aspects of work and working conditions at the Hawthorne plant of Western Electric Company, Chicago. The findings of these studies were given a

tasks. which consists of social. But besides economic inputs and outputs. people. A Contingency Approach A contingency approach to organizational behaviour implies that different situations require different behavioral practices for effectiveness instead of following a traditional approach for all situations. Within the organization 'people' employ 'technology' in performing the 'task' that they are responsible for. It is often measured in terms of economic inputs and outputs. the organization requires 'inputs' from the environment in the form of raw material. Productivity is considered to be improved. Hawthorne studies have been criticized for their research methods and conclusions drawn. . if the organization as a whole is to function effectively. cultural and political environment within which they operate. ideas and so on. The organization itself can be thought of as performing certain 'transformation' processes. But their impact on the emerging field of organizational behaviour was dramatic. The other key aspect of the systems view of organization is its emphasis on the interaction between the organization and its broader environment. public to accept its output. APPROACHES TO ORGANIZATIONAL BEHAVIOUR There are mainly four approaches to organizational behavior. Productivity Approach Productivity is a ratio that compares units of output with units of input. The workers are influenced by social factors and the behaviour of the individual worker is determined by the group. Within themselves the organizations must trade off the interdependencies among people. if more outputs can be produced from the same amount of inputs. on its inputs in order to create outputs in the form of products or services. economic. The systems view emphasizes the interdependence of each of these elements within the organization. the organization depends on environment such as. Systems Approach A system is an interrelated part of an organization or a society that interacts with everyone related to that organization or society and functions as a whole. money. Secondly. This approach is also known as 'supportive approach' because the manager's primary role changes from control of employees to providing an active support for their growth and performance. creativity and fulfillment. because people are the central resource in any organization. They helped behavior in a more humanity centered approach to work. while the 'structure' of the organization serves as a basis for co-ordinating all their different activities. Organizations arc dependent upon their surrounding environment in two main ways: First. Organizations must also recognize their interdependence with the broader environments within which they exist. human and social inputs and outputs also arc important. technology and structure in order to perform their transformation processes effectively and efficiently. This approach help employees become better in terms of work and responsibility and then it tries to create a climate in which they can contribute to the best of their improved abilities. The systems view of organization thus emphasizes on the key interdependencies that organizations must name 'human relations' the studies brought out a number of findings relevant to understanding human behaviour at work. The Human element in the workplace was considerably more important. They are: • Human resources approach ' • Contingency approach • Productivity approach • Systems approach Human Resources Approach The human resources approach is concerned with the growth and development of people towards higher levels of competency.

Models of organizational behavior CONCEPT OF ORGANIZATIONAL BEHAVIOUR SYSTEM Organizations achieve their goals by creating. IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR TO MANAGERS. It is a team concept. in one form or other deal with people and their behavior. Through leadership. Organizational behavior system defines organizational structure and culture and explains their impact on employees. . These roles are developed by Henry Mintzberg in 1960s after a careful study of executives at work. employees are required to follow their orders. management provides a climate to help employees grow and accomplish in the interest of an organization. Supportive Model The supportive model depends on 'leadership' instead of power or money. organizing. Figure 3.2 shows the categories of managerial roles. The model that a manager holds usually begins with certain assumptions about people and thereby leads to certain interpretations of organizational events. In addition to these functions there are ten managerial roles.1 shows the major elements of a good organizational behavior system: ELEMENTS OF THE SYSTEM Organizations differ in the quality of organizational behavior that they develop. which can be defined as organized set of behaviors identified with the position. These differences are substantially caused by different models of organizational behavior that dominant management's thought in each organization. The figure 3. communicating and operating an organizational behavior system. Under this model organizations satisfy the security and welfare needs of employees. Supportive model D. Collegial Model The term 'collegial' relates to a body of persons having a common purpose. The psychological result of this model on employees is their increasing dependence on their boss Custodial Model This model focuses better employee satisfaction and security. Collegial model Autocratic Model In an autocratic model'. Managers perform four major functions such as planning. Management believes that it knows what is best for an organization and therefore. the manager has the power to command his subordinates to do a specific job. directing and controlling. Custodial model C. The following four models of organizational behavior are as follows: A. Autocratic model B. All these roles. These ten managerial roles are divided into three categories.

Information Roles • • • • Monitor Role: The managers are constantly monitoring and scanning their internal and external environment. This can be done by reading reports and periodicals. 2. Liaison Role: The managers must maintain a network of outside contacts. personal phone calls. Mangers must anticipate such problems and take preventive action and take corrective action once the problem arises. arrange capital for new products and ask for suggestions from the employees to improve organization. the managers build up their own external information system. Figure/lead Role: Managers act as symbolic figureheads performing social or legal obligations. customers. their peers and to other members of an organization. interrogating their liaison contacts and through gossip. employee grievances. phone calls. • • Leadership Role: The influence of the manager is most clearly seen in the leadership role as a leader of a unit or an organization. • Resource Allocation Role: The managers establish priorities among various projects or programs and make budgetary allocations to different activities of an organization based on these priorities. 3. In addition. These people include peers. These duties include greeting visitors. Interpersonal Roles In every organization managers spend a considerable amount of time in interacting with other people both within their own organizations as well as outside. Information Disseminator Role: The managers must transmit the information regarding changes in policies or other matters to their subordinates. machine breakdowns. individual meetings and group meetings. they need to have a constant contact with their own subordinates. They initiate feasibility studies. • • Conflict Handling Role: The managers are constantly involved as judge in solving conflicts among the employees and between employees and management. subordinates. peers and superiors in order to assess the external environment of competition. Spokesman Role: A manager has to be a spokesman for his unit and represent his unit in either sending relevant information to people outside his unit or making some demands on behalf of his unit. hearsay and speculation. are as follows: 1. taking important customers to lunch. This can be done through memos. These problems may involve labor disputes. holding strategy meetings with project managers and R&D personnel. in the context of organizational behavior. Since he is responsible for the activities of his subordinates therefore he must lead and coordinate their activities in meeting task-related goals and motivate them to perform better. as entrepreneurs are constantly involved in improving their units and facing the dynamic technological challenges. government officials and community leaders. superiors. suppliers. In this role. social changes or changes in governmental rules and regulations. signing legal documents. This can be achieved through suggestion boxes.The roles. attending a subordinate's wedding and speaking at functions in schools and churches. Decision Roles Entrepreneur Role: Managers. collecting and studying information regarding their organization. . cash flow shortages and interpersonal conflicts. This can be achieved by attending meetings and professional conferences. They are constantly on the lookout for new ideas for product improvement or product addition. trade journals and informal personal contacts with outside agencies. customer complaints.

They negotiate contracts with the unions. Sales managers may negotiate prices with prime customers. Purchasing managers may negotiate prices with .• Negotiator Role: The managers in their negotiator role represent their organization in negotiating deals and agreements within and outside of an organization.