O R G A N I S AT I O N A L

B E H AV I O U R
LECTURE 1
AGENDA FOR TODAY

• Definition of Organisational Behaviour (OB)

• Influences of OB
• Disciplines of OB
• Organisational Iceberg
• Introduction to Psychological Contract

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ORGANISATIONAL
BEHAVIOUR- DEFINITION
• Organisational behaviour is concerned with the study of
the behaviour of people within an organisational setting. It
involves the understanding, prediction and control of
human behaviour. Common definitions of organisational
behaviour (OB) are generally along the lines of: the study
and understanding of individual and group behaviour, and
patterns of structure in order to help improve
organisational performance and effectiveness.
• Organisational behaviour does not encompass the whole
of management; it is more accurately described in the
narrower interpretation of providing a behavioural
approach to management.

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INFLUENCES ON BEHAVIOUR IN
ORGANISATIONS
• The Individual: Organisations are made up of their individual members. The individual
is a central feature of organisational behaviour and a necessary part of any
behavioural situation, whether acting in isolation or as part of a group, in response to
expectations of the organisation, or as a result of the influences of the external
environment. Where the needs of the individual and the demands of the organisation
are incompatible, this can result in frustration and conflict. It is the task of management
to integrate the individual and the organisation, and to provide a working environment
which permits the satisfaction of individual needs as well as the attainment of
organisational goals.

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INFLUENCES ON BEHAVIOUR
IN ORGANISATIONS
• The Group: Groups exist in all organisations and are essential to their working and
performance. The organisation comprises groups of people and almost everyone in an
organisation will be a member of one or more groups. Informal groups arise from the social
needs of people within the organisation. People in groups influence each other in many ways,
and groups may develop their own hierarchies and leaders. Group pressures can have a major
influence over the behaviour and performance of individual members. An understanding of
group structure and behaviour complements a knowledge of individual behaviour and adds a
further dimension to organisational behaviour.

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INFLUENCES ON BEHAVIOUR
IN ORGANISATIONS
• The Organisation: Individuals and groups interact within the structure of the formal
organisation. Structure is created by management to establish relationships between
individuals and groups, to provide order and systems and to direct the efforts of the
organisation into goal-seeking activities. It is through the formal structure that people carry
out their organisational activities in order to achieve aims and objectives. Behaviour is
affected by patterns of organisation structure, technology, styles of leadership and systems
of management through which organisational processes are planned, directed and
controlled. The focus of attention, therefore, is on the impact of organisation structure and
design, and patterns of management, on the behaviour of people within the organisation.
For example, McPhee refers to the growth in the nature and importance of organisational
structures and their essence, and for greater emphasis on business-to-business (B2B)
depth or group interviewing as part of an insight into business and organisational
behaviour.

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INFLUENCES ON BEHAVIOUR
IN ORGANISATIONS
• The Environment: The organisation functions as part of the broader external environment
of which it is a part. The environment affects the organisation through, for example,
technological and scientific development, economic activity, social and cultural influences
and governmental actions. The effects of the operation of the organisation within its
environment are reflected in terms of the management of opportunities and risks and the
successful achievement of its aims and objectives. The increasing rate of change in
environmental factors has highlighted the need to study the total organisation and the
processes by which the organisation attempts to adapt to the external demands placed
upon it. Increasing globalisation means that organisations must respond to different market
demands and local requirements. ‘In globalization, strategy and organization are
inextricably twined.’8 Globalisation impacts on organisational behaviour and has placed
greater emphasis on processes within organisations rather than functions of the
organisation.

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THE 3 DISCIPLINES OF OB

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THE PSYCHOLOGY OF OB

• Psychologists are concerned, broadly

speaking, with the study of human
behaviour, with traits of the individual and
membership of small social groups. The
main focus of attention is on the individual
as a whole person, or what can be termed
the ‘personality system’, including, for
example, perception, attitudes and
motives.

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THE SOCIOLOGY OF OB

• Sociologists are more concerned with the

study of social behaviour, relationships
among social groups and societies, and the
maintenance of order. The main focus of
attention is on the analysis of social
structures and positions in those structures
– for example, the relationship between the
behaviour of leaders and followers.

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THE ANTHROPOLOGY OF OB

• Anthropologists are more concerned with

the science of mankind and the study of
human behaviour as a whole. As far as
organisational behaviour is concerned the
main focus of attention is on the cultural
system, the beliefs, customs, ideas and
values within a group or society, and the
comparison of behaviour among different
cultures.

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ORGANISATIONAL ICEBERG

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THE PEOPLE-ORGANISATION
• The majority of people come to work with the original attitude of being eager to do a good job, and
desirous of performing well and to the best of their abilities. People generally respond in the manner
in which they are treated.
• Where actual performance fails to match the ideal this is largely a result of how staff perceive they are
treated by management and the management function. Many problems in the people–organisation
relationship arise not so much from what management does, but the manner in which it is done.
Often, it is not so much the intent but the manner of implementation that is the root cause of staff
unrest and dissatisfaction.
• For example, staff may agree on the need to introduce new technology to retain the competitive
efficiency of the organisation, but feel resentment about the lack of pre-planning, consultation,
retraining programmes, participation in agreeing new working practices and wage rates, and similar
considerations arising from the manner of its introduction. Therefore, a heavy responsibility is placed
on managers and the activity of management – on the processes, systems and styles of
management.
• Accordingly, how managers exercise the responsibility for, and duties of, management is important.
Attention must be given to the work environment, and appropriate systems of motivation, job
satisfaction and rewards. It is important to remember that improvement in organisational performance
will only come about through people.

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THE PSYCHOLOGICAL
CONTRACT
• One significant aspect of organisational behaviour and the relationship between the individual and the
organisation is the concept of the psychological contract. This is not a written document, but implies a
series of mutual expectations and satisfaction of needs arising from the people–organisation
relationship. It involves a process of giving and receiving by the individual and by the organisation.
The psychological contract covers a range of expectations of rights and privileges, duties and
obligations, which do not form part of a formal agreement but still have an important influence on
people’s behaviour.
• The nature and extent of individuals’ expectations vary widely as do the ability and willingness of the
organisation to meet them. It is difficult to list the range of implicit expectations that individuals have
and they change over time. These expectations are notwithstanding any statutory requirements
placed upon the organisation; instead they relate more to the idea of a social responsibility of
management.
• The organisation will also have implicit expectations of its members. The organisational side of the
psychological contract places emphasis on expectations, requirements and constraints that may differ
from, and may conflict with, an individual’s expectations.

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 FINDING A BALANCE
• It is unlikely that all expectations of the individual or of the organisation will be met
fully. There is a continual process of balancing, and explicit and implicit
bargaining. The nature of these expectations is not defined formally, and although the
individual member and the organisation may not be aware consciously of them, they
still affect relationships between them and have an influence on behaviour.
• The psychological contract is a useful concept in examining the socialisation of new
members of staff to the organisation. According to Kotter, for example, early
experiences have a major effect on an individual’s subsequent career in an
organisation, and influence job satisfaction, attitude and level of productivity. The
extent of the matches between individual and organisational expectations also
influences the willingness of people to stay with the organisation and of the
organisation to continue to employ them.
• The significance of the psychological contract depends on the extent to which it is
perceived as fair by both the individual and the organisation, and will be
respected by both sides. Cartwright, for example, refers to mutuality as the basic
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principle of the psychological contract.
FINDING A BALANCE
Stalker suggests that successful companies
are those that have the ability to balance the
unwritten needs of their employees with the
needs of the company. Such companies use
a simple formula of Caring, Communicating,
Listening, Knowing and Rewarding.
■ Caring – demonstrating genuine concern
for individuals working in the organisation.
■ Communicating – really talking about what
the company is hoping to achieve.
■ Listening – hearing not only the words but
also what lies behind the words.
■ Knowing – the individuals who work for
you, their families, personal wishes, desires
and ambitions.
■ Rewarding – money is not always
necessary; a genuine thankyou or public
recognition can raise morale.
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 ANY
QUESTIONS?
Email Me At “aisha.shams@dsu.edu.pk”