ORGNISATION BEHAVIOUR

UNIT 1
1 CONCEPT

Organizational Behaviour is field of study that investigates the impact that individuals,
groups and structure have on behaviour within organization. It is the study and application of
knowledge about how people act within organizations. It is a human tool for human benefit.
It applies broadly to the behaviour of people in all types of organizations, such as business,
government, schools and services organizations. It covers three determinants of behaviour in
organizations: individuals, groups, and structure. OB is an applied field. It applies the
knowledge gained about individuals, and the effect of structure on behaviour, in order to
make organizations work more effectively. OB covers the core topics of motivation,
leadership behaviour and power, interpersonal communication, group structure and process,
learning, attitude development and perception, change process, conflict, job design and work
stress. Before studying organizational behaviour, it is desirable to know the meanings of
organization and management.
1.1 Organization
Organization as a purposeful system with several subsystems where individuals and activities
are organized to achieve certain predetermined goals through division of labour and
coordination of activities. Division of labor refers to how the work is divided among the
employees and coordination refers to how all the various activities performed by the
individuals are integrated or brought together to accomplish the goals of the organization.
The term organizing is used to denote one aspect of the managerial activities when he or she
is preparing and scheduling the different tasks that need to be completed for the job to be
done.
1.2 Management
It refers to the functional process of accomplishing the goals of the organization through
the help of others. A manager is an individual who is given the responsibility for achieving
the goals assigned to him or her as part of the overall goals of the organization and who is
expected to get the job done. The terms of top management, lower management are
frequently used to indicate the hierarchical levels of those who are engaged in the process of
getting the goals of the organization accomplished.
1.3 Key Elements of Organisational Behavior
The key elements in organizational behaviour are people, structure, technology and the
external elements in which the organization operates. When people join together in
anorganization to accomplish an objective, some kind of infrastructure is required. People
also use technology to help get the job done, so there is an interaction of people, structure
and technology. In addition, these elements are influenced by the external environment, and
they influence it. Each o f the four elements of organizational behaviour will be considered
briefly.
1.3.1 People
People make up the internal social system of the organization. They consist of individuals
and groups, and large groups as well as small ones. People are the living, thinking, feelings
beings who created the organizations. It exists to achieve their objectivesOrganizations exist
to serve people. People do not exist to serve organizations. The work force is one of the
critical resources t hat need to be managed. In managing human resources, managers have to
deal with:
i) Individual employee who are expected to perform the tasks allotted to them
ii) Dyadic relationships such as superior-subordinate interactions
iii) Groups who work as teams and have the responsibility for getting the job done,
iv) People outside the organization system such as customers and government officials
1.3.2 Structure
Structure defines the official relationships of people in organizations. Different jobs are
required to accomplish all of an organization’s activities. There are managers and employees,
accountants and assemblers. These people have to be related in some structural way so that
their work can be effective. The main structure relates to power and to duties. For example,
one person has authority to make decisions that affect the work of other people.
Some of the key concepts of organization structure are listed as below:
a) Hierarchy of Authority: This refers to the distribution of authority among organizational
positions and authority grants the position holder certain rights including right to give
direction to others and the right to punish and reward.
b) Division of Labour: This refers to the distribution of responsibilities and the way in which
activities are divided up and assigned to different members of the organization is considered
to be an element of the social structure.
c) Span of Control: This refers to the total number of subordinates over whom a manager
has authority
d) Specialization: This refers to the number of specialities performed within the
organization.
e) Standardization: It refers to the existence of procedures for regularly recurring events or
activities
f) Formalization: This refers to the extent to which rules, procedures, and communications
are written down
g) Centralization: This refers to the concentration of authority to make decision.

Key Development in OB History

• The prescientific Era (Pre 1000-1880)

• The classical Era (1880-1930)
 Administrative theory
 Scientific Management
• The behavioural Era (1930-1960)
 The Hawthorne studies
• The modern Era (1960 onwards)
 McGregor's Theory X and Theory Y
 A contingency approach

Pre Scientific Era(Pre 1000-1880)

Time Span Pre 1000-1880
Economy Agrarians
Level of workers Illiterate
Worker’s expectation To take care of the family
Management tools and Crude Techniques
Managerial role No formal Management
 Classical Era(1880-1930)
Economy Administrative Scientific Management
Management
Economy Industrial Industrial
Level of workers Literate Literate
Worker’s expectation Economic Economic
Management tools and Crude to sophisticated Standardized tools and
Techniques
Managerial role Follow Fayol’s 14 Principles Control by principles of
scientific management

Behavioural Era( 1930-1960)

Time Span 1930-1960
Economy Industrial
Level of workers Literate and educated
Worker’s expectation Social and Self Actualizing
Management tools and Sophisticated
Managerial role Focus on humane work environment and
informal work groups
 The Modern Era(1960 onwards)
Outdated Theory X Assumptions about Modern Theory Y Assumptions About
people at work people at work

Most people dislike work; they will avoid Work is natural activity, like play or rest.
it when they can

Most People must be threatened with People are capable of self direction and
punishment before they will work. People self control if they are committed to the
require close direction when they are objectives.
working.

Most people actively prefer to be
directed. They tend to avoid
responsibilities and exhibit little ambition.
They are interested only in security.
The typical employee can learn to accept
and seek responsibilities.
The typical segment of the general
population has imagination ,ingenuity and
creativity.
People generally become committed to
the organization if they are rewarded for
doing so.

Why study OB
• To learn about yourself and how to deal with others.

• You are part of an organization now, and will continue to be a part of various
organizations.
• Organizations are increasingly expecting individuals to be able to work in teams, at
least some of the time.

Key Managerial Practices of Successful Organizations

1. Employment security.
2. High standards in selecting personnel.
3. Extensive use of self-managed teams and decentralized decision making.
4. Comparatively high compensation based on performance.
5. Extensive employee training.
6. Reduction of status differences between higher management and other employees.
7. Information sharing among managers and other workers.
8. Promotion from within
 Model
Organization
level

Group Level

Individual level

Individual Level Groups and Interpersonal

Relations
A Framework
Individual for Studying Organizational
differences, mental Behavior
ability, and personality Interpersonal communication
Learning, perception, attitudes, Group dynamics and teamwork
values, and ethics Leadership
Individual decision making Power, politics, and influence, negotiation,
and creativity
Foundation concepts of motivation
Conflict, stress, and well-being

The Organizational System

and the Global Environment

Organizational structure and design

Organizational culture and change
The learning organization and
knowledge management
Cultural diversity and international
organizational behavior
 Disciplines related to OB

Economics

Sociology Anthropology

OB
Social
Psychology
Psychology

INDIVIDUAL BEHAVIOUR
• It is a combination of responses to external and internal stimuli.
• Human behavior is a complex phenomone as it is most difficult to define
in absolute terms. Individual behavior may change due to a change in the
same environment or exposure to different environment.
• “No two people are alike, yet no two people are unlike.”
• Plato stated “No two persona are born exactly alike; each differs from the
other in natural way, one being suited for one occupation and the other
for another.”

Causes of Individual Behaviour

• Inherited Characteristics:
 Physical Characteristics
Age, Religion, Social Group, stamina, vision, Intelligence,
• Learned Characteristics :
 Perception
 Values
  Attitudes
 Personality

Factors influencing Individual Behaviour

Personal factors
Age, Gender,
Intelligence, Marital
Status, Emotional
Intelligence

Organizational
Factors Psychological
Tenure, Organizational Factors
Individual
culture and climate, Perception, values,
Reward system, Behaviour
Attitudes,
Leadership style Psychological needs

Environmental Factors
Economic status,
Political Status

PERSONALITY
• The sum total of ways in which an individual reacts and interact with
others.
• Personality refers to the relatively stable pattern of behaviors and
consistent internal states explain a person’s behavioural tendencies.
• Personality is a set of traits and behaviors that characterize an individual.
• A trait is a characteristic way in which an individual perceives , feels,
believes or acts
Personality Determinants
 Heredity
 Environment
 Culture
 Situation
 Family and Social Background

Theories Of Personality

Psychometric Theories of Personality

• Sixteen Personality Factors (16 P-F) (Cattel)
• Big Five
• FIRO-B
Psychodynamic Theories of Personality
• Sigmund Freud
• Carl Jung and MBTI
• Transactional Analysis

Lifestyle-based Theories of Personality

• Type A vs Type B
• Enlarging vs Enfolding
• Personality-Job Fit

S. No Factors Bipolar Dimensions of

Personality’

1 Warmth: Outgoing vs reserved

2 Reasoning: More intelligent vs less
intelligent
3 Emotional stability: Emotionally stable vs unstable
4 Dominance: Assertive vs humble Sixteen
5 Liveliness: Happy-go-lucky vs sober
Personality
6 Rule-consciousness Conscientious vs expedient
Factors
7 Social boldness: Venturesome vs timid
(16 P-F)
8 Sensitivity: Tough-minded vs sensitive
9 Vigilance: Suspicious vs trusting
(Cattel)
10 Abstractedness: Imaginative vs practical
11 Privateness: Shrewd vs forthright
12 Apprehension Apprehensive vs self-assured
13 Openness to change: Experimental vs conservative
14 Self-reliance Self-sufficient vs group
dependent
15 Perfectionism Controlled vs casual

1
16 Tension: Relaxed vs tense
 The Big Five Model of Personality (Digman)

Extraversion: One’s comfort level with relationships:

talkative, outgoing, sociable, gregarious, and assertive
Agreeableness: One’s inclination to defer to others:, Good-
natured, cooperative, warm, caring and trusting

Conscientiousness: One’s reliability regarding responsibility;

Responsible, dependable, persistent, and organized.

Emotional Stability: One’s ability to withstand stress; Calm, self-

confident, secure (positive) versus nervous, depressed, and
insecure (negative).

Openness to Experience: One’s range of interests and fascination

with novelty: Imaginativeness, artistic, sensitivity, and curious.

How Big Five Traits Influence OB

Big Five Traits
Emotional Stability (calm, self
confident, positive versus
nervous, depressed and
insecure)
Why It is relevant What doe it affect?
Less negative thinking and fewer High job and life satisfaction
negative emotions Lower stress level

Extroversion (Sociolable and Better interpersonal skills Higher performance

assertative) Greater social dominance Enhanced leadership
Moe emotionally expressive Higher job and life satisfaction

Openness Increased learning Training performance

More creative Enhanced leadership
More flexible and autonomous More adaptable to change

Agreeableness Good natured, Better liked Higher performance,

Coperative,trusting More complaint Lower level of deviant behavior
conforming

Conscientiousness responsible, Greater effort and persistence Higher performance

dependable, persistent and More drive and discipline Enhanced leadership
organized Better organized and planning Greater longevity
 FIRO-B
 Based on the theory of interpersonal relations.

 The FIRO-B instruments looks at how you typically behave

with other people and how you hope they will act towards you.
 Objectives Of FIRO-B
• To construct a measure of how an individual acts in
interpersonal situations and

• To construct a measure that will lead to the prediction of

interaction between people.

Basic needs
• There are three basic needs :
Inclusion
Control
Affection
• These three basic needs have two dimensions:
Expressed Behaviour
Wanted Behaviour
 Contd..(William Schutz)
Inclusion Control Affection

Expressed Expressed Inclusion Expressed Control Expressed Affection

Behaviour I initiate interaction I control People I act close and
I want people to be
personal

Wanted Behaviour Wanted Inclusion Wanted Control Wanted Affection

I want to be I want to be I want people to be
included controlled
close and personal
to me

Benefits of FIRO-B
• Individual development
• Team building and development
• Selection and placement
• Relationship building
 The Myers-Briggs Type Indicator (MBTI)

Myers-Briggs Type Indicator: A personality test that taps

four characteristics and classifies people into 1 of 16
personality types.

Personality Types
• Extroverted vs Introverted (E or I)
• Sensing vs Intuitive (S or N)
• Thinking vs Feeling (T or F)
• Judging vs Perceiving (P or J)

Myers-Briggs Type Indicator

Extroversion vs. Introversion

Sensing vs. Intuition

Thinking vs. Feeling

Judging vs. Perceiving

 MBTI Framework
Aspects Characteristics
 Source of Energy
 Extraversion (E)  Outgoing: speaks, and then thinks. Relates more easily to
the outer world of people and things than to the inner world
of ideas.

 Introversion (I)  Reflective: thinks, and then speaks. Relates more easily to
the inner world of ideas than to the outer world of people.

 Collecting Information
 Sensing (S) Practical, concrete. Would work with known facts than
look for possibilities and relationships.

 Intuiting (N)
 Theoretical, abstract. Would look for possibilities and
relationships than work with known facts

 Decision Making  Analytical, head. Relates more on interpersonal analysis

and logic than on personal values
 Thinking (T)
 Subjective, heart. Relies more on personal values than on
impersonal analysis and logic
 Feeling (F)

Understanding the world

 Structured, organized. Likes a planned and orderly way of
 life than a flexible spontaneous way
 Judging (J)
 Flexible, spontaneous. Likes a flexible, spontaneous way
1  Perceiving (P) than a planned and orderly way of life.

Type A and Type B Personality Types

Type A
1. are always moving, walking, and eating rapidly;
2. feel impatient with the rate at which most events take place;
3. strive to think or do two or more things at once;
4. cannot cope with leisure time;
5. are obsessed with numbers, measuring their success in terms of
how many or how much of everything they acquire.

Type B
1. never suffer from a sense of time urgency with its accompanying
impatience;
2. feel no need to display or discuss either their achievements or
accomplishments;
3. play for fun and relaxation, rather than to exhibit their superiority
at any cost;
4. can relax without guilt.

1
 Enlarging and Enfolding Personality Types

 Enlarging: associated with career/job success; goals of

motivation; self-improvement/development; growth;
non-traditional; moves to influential position; likely to
read, attend theatre, keep up with current events

 Enfolding: associated with less career/job success;

goals of tradition; stability; inner strength; values
parental ties, is not member of any social or
community group; does not join any program for self-
improvement/development

Personal Effectiveness

Dimensions of Personal Effectiveness

1. Self-disclosure
2. Use of feedback
3. Perceptiveness
 Categories of Personal Effectiveness

S. Category Self- Openness to Perceptiveness

No. disclosure feedback
1 Effective High High High
2 Insensitive High High Low
3 Egocentric High Low Low
4 Dogmatic High Low High
5 Secretive Low High High
6 Task obsessed Low High Low
7 Lonely-empathic Low Low High
8 Ineffective Low Low Low
1

ATTITUDE
Elements of Attitude
Attitude

Affective Cognitive Conative(

Emotional) (information action)
or knowedge

Negative Attitude Positive Attitude

My teacher gave more marks
to my friend, though I did
better than her.
He is very partial. (Cognitive)
I just hate him. (Affective)
I don’t attend his class and do
not submit my assignments on
time. (Conative,)
1 time. (Conative,)
My teacher gave me highest
marks on my assignments.
He is the best teacher,
appreciates good work .
(Cognitive)
He is my favorite teacher.
(Affective)
I look forward to his class and
submit my assignments on
 Theory of Attitude Change
• Reinforcement theory: According to this theory changes in
opinion can result in attitude change, depending on the presence or
absence of rewards. The learning of new attitudes is not different in
nature than any other verbal or motor skill, except that opinions
relate to a single proposition,whereas other skills involve a series of
proposition.
• Balance Theory: Heider’s developed a balance theory of attitude
change .In haider’s theory ,when beliefs are unbalanced, stress is
created and there is pressure to change attitudes.The two main
factors affecting balance are the sentiment and unity qualities of
beliefs.
• Balance exists if the sentiment or unity between beliefs about events
or people are equally positive or negative ,imbalance occurs when
they are dissimilar in nature.

• Cognitive Consistency Theory: It suggests that people will try and

maintain consistency among their beliefs and make changes when this does
not occur.
• Comprehensive Theory: The five communication processes in the theory
are:
– Source
– Message
– Channel
– Receiver
– Destination