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:
Psychology
For Manages
Shashi [Link] Rosy Joshi
\[Link]. (1 Semester)
BCM102 : Psychology For Managers
Objective: The objective of the paper is 10 provide broad understanding about basic concepts and
techniques of human behaviour to the students.
UNIT-I
Introduction: Concepts, Definitions; Need and Importance of Organisational Behaviour
for Managers, Contributing Disciplines of OB. Nature and Scope, Organisational Behaviour
Models.
Individual Behaviour; Introduction and Meaning, Factors Affecting Individual
Behaviour, Models of Individual Behaviour
Personality; Meaning, Characteristics, Determinants and Theories of Personality
Perception: Nature & Importance, Perception Process, Perceptual Selectivity, Perceptual
Organization, Perpetual Errors and Distortions.
Attitudes and Values: Components, Sources and Measurement of Attitudes. Concept
Sources and Types of Values.
UNIT -I
Motivation: Meaning and Importance of Motivation, Theories of Motivation, Morale.
Inter Personal Behaviour and Transactional Analysis (TA).
Leadership: Definition, Importance, Leadership Styles, Models and Theories of
Leadership .
Stress Management: Concept, Sources of Stress, Work Stressors, Consequences,
Prevention and Management of Stress,
Conflict Management: Traditional vis-a-vis Modern View of Conflict, Types and Causes
of Conflict, Conflict Resolution,5Now pn B Chapters
1. __| INTRODUCTION To PSYCHOLOGY FOR MANAGERS 14-140 |
i |
2. | INDIVIDUAL BEHAVIOUR 24-217 |
3. | PERSONALITY 31 338 \
4, | PERCEPTION 4.1- ial
5. | ArritupEs AND VALUES 51 7 5.32
6. | MOTIVATION 61- ‘|
7. | MOTIVATIONAL TECHNIQUES: TA—727.
8. | MORALE 81-812
iD: INTER PERSONAL BEHAVIOUR AND TRANSACTIONAL 9.1-9.28
ANALYSIS |
10. | LEADERSHIP | 10.1-10.38
11. | STRESS MANAGEMENT \ quan |
12. | MANAGEMENT OF ConrLict 1-12.27 |CHAPTER
fn INTRODUCTION TO
PsyCHOLOGY FOR MANAGERS
[Learning Objectiv
After reading this chapter the readers should have a clear understanding of :
§ Introduction and meaning of psychology for managers
@ Aspects and key areas of organisational, psychology for managers
& Introduction, meaning and definition of OB
© Characteristics of organisational behavior
& Key elements/process of organisational behavior
& Goals and philosophical concepts of organisational behavior
@ Levels of analysis
= Fundamental concepts of organisational behavior
= Organizational behavior and other fields of study
= Role of organisational behaviour
@ The historical evolution of organisational behaviour
= Foundations of organisational behaviour
§ Approaches to the study of organisational behaviour
1m Process of behaviour
Models of organisational behaviour
= Challenges and Opportunities for organisational behaviour
m_ INTRODUCTION AND MEANING
One of the major tasks of a manager is to make decisions and “Decision Making” often involves
human behaviour. In the business world, if individuals also possess both the knowledge ofPsychology For Margo,
rio"
advantage and competity
en organisational psych
Mtroduc
to have
management and psychology, they are more me -
among their colleagues. Being able to apply of
unique skill essential to the survival of businesses
fesiciiieaaneannl
the mind that is direct,
the psychology oF »,
eFBON ON actviy «ns
[management is the
se of planning, organ
vi “ihe state of mind of the people ay
Thus, organisational chology is the: e z ; It is firstly the s
so that several oni problems may be solved without ing to human be}
human behavior and is concemed with the discovery Of ee ean a
Secondly , it is concerned with the application of : fegal tepect of psycholoy, ¢
problems of human life. Organisational psychology is the professional Snes on
main aim of organisational psychology is research rather than administration Fe: of empl
workplace productivity and related issues such as the physical and mental wellbe ¥ no!
gen
1 ASPECTS/NEED OF PSYCHOLOGY FOR MANAGERS = a
Basically there are two aspects of psychology for managers. wh
1. First, there i the industrial side, which involves looking at how to best match indiviiiyy
specific job roles. This segment of psychology is also sometimes referred to as per =
psychology People who work in this area ‘employee characteristics
match these individuals to jobs in which they are likely to perform well. Oth:
that fall on the industrial side of psychology | g employees, dev *
performance standards, and measuring job p
influence how people behaviour within an.
Psychologists hope to improve individual
benefiting the organisation as a whole.
According to Muchinsky, most organisational p
areas:
1. Training and Development: ,
nom © patria
Programs. n
what type o! s*
te employeeIntroduction to Psychology For Managers 13
2, Employee Selection: This area involves developing employee selection assessments, such
as screening tests to determine if ob applicants are qualified for a particular position,
Ergonomics: The field of ergondmics involves designing procedures and equipment
designed to maximize performance and minimize injury.
Performance Management: Psychologists who work in this area develop assessments and
techniques to determine if employees are doing their jobs well
5. Work Life: This area focuses on improving employee satisfaction and maximizing the
productivity of the workforce. Psychologists in this area might work to find ways to make
jobs more rewarding or design programs that improve the quality of life in the workplace
6. Organisational Development: Psychologists who work in this area help improve
organisations, often through increasing profits, redesigning products, and improving the
organisational structure.
+
+
@ INTRODUCTION TO ORGANISATION BEHAVIOUR
Organisations are social systems. People who are responsible for managing them, need to
understand how they operate. Organisations are a combination of science and people—technology
and humanity. Unless there are qualified people to design and implement, the techniques alone will
not produce designable results. Human behaviour in organisations is quite unpredictable. It is.
generally, concerned with the thoughts, feelings, emotions and actions of the people working in it
However, it can be partially understood in terms of the framework of behavioural sciences,
management and other disciplines. There is no idealistic solution to organisational problems. That is
why it is rightly said that the success of an organisation depends upon the efficiency and
effectiveness of the management and the effectivness of the management depends primarily on its
human skills and how well it understands the needs and desires of the people working in the
Organisational behaviour actually refers to the behaviour of the people in the organisations
because organisations themselves do not behave. It is an accepted fact that an organisation can
develop only when its people are developed. Study of their behaviour, therefore, becomes imperative
for the development of people, OB is a field of study that investigates the impact that individuals,
The field of OB does not depend upon assumptions based on intuition and gut feelings but
attempts to gather information regarding an issue in a scientific manner under controlled conditions
It uses information and interprets the findings so that the behaviour of an individual and group can
be canalised 46 desited. Large number of psychologists, social scientists and academicians have
carried out research on various issues related to organisational behaviour.
The scope of OB is as follows :
© Leadership
+ Employee motivation| ‘of study that investigates the impact thal individuals, group and
| Organisational structure have on behaviour within,
|_ towards an organisational effectiveness.”
groups and structure have on behaviour within
14
Int
Impact of personality on performance
Creation of effective teams and groups
Study of different organisational structures.
Individual behaviour, attitude and learning,
Perception
Impact of culture on organisational behaviour
Management of change.
Stress and conflict management
Organisation development and organisational design
Transactional analysis Ps
* Group behaviour
* Power and politics and so on and so forth
Ta
MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR
“Organisational behaviour is @ field
‘organisation, for the purpose of applying that knowiedge
The above mentioned definition has three elements +
Organisational behaviour is an investigative study of individuals and groups,
* The impact of organisational structure on human behaviour.
* The application of knowledge to achieve organisational effectiveness.
Organisational behaviour is directly concerned
\ with the understanding, prediction and control of
hu
man behaviour in organisations. It is an area of study that investigates the impact that individuals
organisations,Introduction to Psychology For Managers
In short, organisational behaviour revolves around two fundamental components:
1. The nature of the man.
2. The nature of the organisation.
In other words, organisational behavio
relation to physical means and resources 50 as to achieve the desired
ur may be organisation of individual's behaviour in
objective of the organisation
m ORGANISATIONAL BEHAVIOUR, ORGANISATIONAL THEORY, ORGANISATIONAL
PSYCHOLOGY & HUMAN RESOURCE MANAGEMENT
Organisational behaviour is generally confused with organisational theory,
psychology, and human resource management.
‘Organisatonal Theory differs from Organisational Behaviour in the following aspects
- =
‘OB tries to understand the behaviour, | Organsiation theory focusses on the |
and structure of the
organisational
in organisations.
tional behaviour is a micro-
study of the people's behaviour.
OB emphasises on applied psychology in
organisations.
OBis predictive in nature.
Organisation theory is a macro analysis
of the organisation.
Organisation theory lays emphasis on
the sociology of the organisation.
Organisation theory is descriptive and
predictive in nature.
The aim of Organisation theory is to
analyse the design of organisation and
explain what is happening in
‘The main aim of OB is to explain and
‘predict the behaviour of individuals and
‘groups in organisations.
Organisational psychology restricts itself to psychological factors only whereas organisational
behaviour considers and combines all the branches of study e.g. Science, technology, economics,
anthropology, psychology and so on and so forth.
Organisational behaviour is the basis of human resource management and devel
former is concept oriented whereas the latter is concerned with the technology of human
development. The variables influencing human development are scientifically studied under
organisational behaviour. Human resource management, is activated, directed and channelised by
the application of the knowledge of organisational behaviour which has become a field of study,
research and application for the development of human resources and the organisation as @ whole.
Thus, we can say that all these terms are interrelated but not synonymous with each other.
lopment. TheIntroduction to Psychology For Manager,
ORGANISATIONAL BEHAVIOUR)
adie Ser asc
n Kiss Sigs 2: Bh be
From the above definitions, the following features of organisational behaviour emerge ;
1. Behavioural Approach to Management. Organisational behaviour is that part of who),
management which represents the behavioural approach to management. Organisation,
behaviour has emerged as a distinct field of study because of the importance of human
behaviour in organisations.
2. Cause and Effect Relationship. Human behaviour is generally taken in terms of cause 11
effect relationship and not in philosophical terms. It helps in predicting the behaviour o:
individuals. It provides generalisations that managers can use to anticipate the effect o:
certain activities on human behaviour.
3. Organisational Behaviour is a Branch of Social Sciences. Organisational behaviour
heavily influenced by several other social sciences viz. Psychology, Sociology ané
Anthropology. It draws a rich array of research from these disciplines.
4. Three Levels of Analysis. Organisational behaviour encompasses the study of three leve!
of analysis namely individual behaviour, inter-individual behaviour and the behaviour o!
organisations themselves. The field of organisational behaviour embraces all these levels «
being complementary to each other.
5. A Science as well as an Art. Organisational behaviour is a science as well as an art. Iv
systematic knowledge about human behaviour is a science and the application ©’
behavioural knowledge and skills is an art. Organisational behaviour is not an exact scien:
because it cannot exactly predict the behaviour of people in organisations. At best
manager can generalise to a limited extent and in many cases, he has to act on the basis ©
partial information.
6. A Body of Theory, Research and Application. Organisational behaviour consists of a bod
of theory, research and application which helps in understanding the human behaviour
organisation. All these techniques help the managers to solve human problems i"
organisations.17
Introiduction to Psychology For Managers
Organi iduals. Organisational behaviour creates an
th isation and Indivi
a eee both organisation and individuals are benefitted by each other. A
‘ nable climate is created so that employees may get much needed satisfaction and the
reasor
organisation may attain its objectives.
inking. Organisational behaviour provides a rational thinking about people
oon a en nic The major objective of organisational behaviour is to explain and
rretihoaitd behaviour in organisations, 80 that result yielding situations can be created
wm KEY ELEMENTS/SCOPEOFOB
Like any other discipline, OB also has certain ‘Fundamental concepts or assumptions’. These are
basically the forces which affect the nature of organisations today. There are four key elements of OB
~People, structure, technology and environment. These key elements are discussed as follows
1, People. Organsiations are run by people and people make up the internal social system of the
organisation. People consist of individuals and groups. The groups may be large groups as well as
small groups, formal’ and informal groups, official and unofficial groups. Group are dynamic in
nature. These are formed, changed, reformed and disbanded. People, though have much in common
yet they differ from each other. There can be no set or scientific formula of dealing with the human
beings. Managers have to deal with employees with their individual differences. We should always
Temember that the survival of oganisations depend upon serving their people and keeping them
happy.
Inmanaging people, the managers have to deal with :
~ Individual employees who are expected to perform the tasks allotted to them.
~ Dyadic relationships such as superior subordinate relationship.
~ Groups who work as eam and have the responsibilty for getting the job done.
People outside the organisation system such as customers and governement officials
People of today are not the-same as people of yesterday or the day before. A new labour force has
emerged and the management must change its leadership practices to match the new challenges
Some of the latest changes in labour force are :
~ Decline in the work ethics.
~ Rising emphasis on leisure self expression, fulillment and personal growth.a= “Introduction to Payehotogy For Manager,
— Decline in automatic acceptance of authority.
— Increase inthe desire for participation, autonomy and control,
= Very fast obsolescence of skills due to technical advancement.
~ Retraining or retrenchment of manual workers.
— Increased concems for security due to downsizings arid outsourcing.
— Renewed emphasis on money as a motivator,
Managers of today have to be prepared sce ol ewe shenaeason ear ey ve
to adapt themselves to them, Human behaviour i always caused. There is always @ cause : ind
every human act or behaviour. The manager must know the cause to solve the problent. People are
living, thinking and feeling beings. The management has to treat them with dignity and not like other
economic tools.
2, Structure. Organisations are social systems. In every organisation, two types of social systems
exist ~ formal and informal. The formal relationship of people in organisations is called the structure
Different jobs are required to accomplish the goals and objectives of the organisations. Different
people perform these different jobs and at different levels.
These people have to be related in some structural way, so that their work can be effectively
coordinated. These relationships create complex problems of cooperation, negotiation and decision
making for the managers.
The organisational structures are also changing with the passage of time. Nowadays, the recent
trend is of flatter and leaner organisations, To lower the costs and to survive in the globally
competitive environment the organisations have to resort to downsizing and restructuring. Mergers,
acquisitions andl joint ventures make the structures even more complex. Organisations are moving
from traditional structures to team based structures. Several organisations are experimenting with
Part time, temporary and contract employees.
5. Technology. Technology provides the resources with which people work and affects the task
that they perform. The type of technology tsed in the organisation has a very significant inhuence on
the working relationships among individuals and groups. The major benefit of technology is that i
allows people to do more work and that oo in abetter way. On the other hand, it ao restricts people
in many ways. Managers nowadays are under tremendous. i i
vores eae e ‘Pressure to maintain the delicate balanceIntroduction to Psychology Far Managers e
m GOALS OF 0B ,
‘The main goals or objectives of OB are as follows =
1. Describe, The first objective of OB is to describe systematically, how people behave under a
variety of conditions. If the managers can achieve this goal, they can succeed in
communicating about human behaviour at work using common language.
2, Understand. The second objective of OB is to understand why people behave as they do. It
will be highly frustrating for the managers, if they see the behaviour of their employees,
talk about that, but not understand the reason behind those acts. The managers have to
Jeam to probe the underlying explanations,
3. Predict. The third objective of OB is to predict the future employee behaviour. This is a very
important job of the manager to predict how a particular employee will behave in a
particular situation eg. who are the employees who will send their leaves on days which
are supposed to be hectic or difficult. If the managers succeed in this objective, they can
take preventive actions.
4. Control. The final objective of OB is to control; at least to some extent the human activity at
work. Managers have to improve the performance through the actions they and their
employees take and OB can help them in the pursuit of their goal.
There are some philosophical concepts of OB around which the nature of people and the nature
of organisation revolves. These are discussed as follows :
i 2 See (Motivated Behaviour). From the study of psychology, we learn that
uman has certain causes. These causes may relate to a person's needs or the consequences
{het result from acts. In the case of needs, people are motivated not by what they think they ought to
fj ve; Dut wha they themselves want to. To a neutral observer a person's needs may be unrealistic,
rae o are still controlling; This situation leaves the management with two options to motivate the
= Toshow them how certain actions will increase their need fulfillment or2. A whole Person. Although som
Person's skill or brain, but that is not po
certain characteristics. Different humart
are all part of one system making up, #
background. Home life is not totally
separate from physical conditions. People:
3, Individual Differences. People have
achievement, they are grieved by any loss, but
The idea of individual differences originates ft
unique and individual experiences after birt
differences require that a manager's appro
individual differences is that employees
differently. All people are different and
valuable asset to the organisation. If it were.
dealing with employees could be adopted.
4, Human Dignity, Human dignity
concepts about the nature of man. H
should be treated with respect and d
different from land, capital and other ph
‘draws heavily on the discipline of ps
way they do to different
Psychologically based theories of learning, mo
at
attitudes, belies,
could employ only a
person rather than
‘the final analysis they
from knowledge or
wal conditions are not
e excited by an
individually different
sf birth, each person is
different. Individual
als of analysis. At one
nak in the pursuit ofim
People rarely work independently in organisations; they
have to necessarily work in coordination to meet the organisational goals. This frequently results in
people working together in teams, committees and groups, How do people work together in groups
will be cohesive and productive ? What types of tasks could
be assigned to groupe ? These are somé of the questions that can be asked about the effective
functioning of groups in Organisations. An important component of organisational behaviour
involves the application of knowledge and theories from social psychology to the study of groups in
organsiations.
3. Organisation at the Organisational Level. Some organisational behaviour researchers take the
Organisation as a whole as theit object of study. This macro prospective on organisational behaviour
draws heavily on theories and concepts from the discipline of ‘sociology’. Researchers seek to
understand the implications of the relationship between the Organisation and its environment for the
effectiveness of the Organisation. Emphasis is placed upon understanding how organisational
‘of an organisation. Other factors such as the
structure and design influences the effectiveness
technology employed by the organisation, the size ofthe organisation and the organisation's age are
alco examined and their implications for effective organisational functioning are explored
“These different perspectives on the study
another, instead they are complementary. A full and
Organisations and the determinants
from each perspective.
of organisational behaviour are not in conflict with one
complete understanding of the nature of
of their effectiveness requires a blending of knowledge derived
Organisational behaviour starts with the following six fundamental concepts revolving around
the nature of people and organisations :
‘The nature of people +
1. Individual differences
2. Awhole person
3. Motivated behaviour
4. Value of the person
‘The nature of organisation :
1. Social system
2, Mutual Interest,
b.
‘The
two points:
Iitrotction to Poychalogy For Managers
ina al traits. They
1. Individual Differences. Individuals are different in their physical and mental Btah,
are different not only in the physical appearance such as Be ke onl
complexion and so on i i ee Sete ce.
ititude, motivation and perception. This . person dif — Bathe
‘typ led ear of nl ire: nia flrs ean at the
management has to treat the employees differently to get the best out ‘1
2. A Whole Person. Though the organisation may feel that they are employing only Ga
individual's skill or intelligence, in fact, they employ the ‘whole person’. Ween ‘ia
individual does not have only the skill and intelligence but he has a personal cm oe
desires ag well, In other words, his personal life cannot be separated from his work life
since people function as total human beings.
_ it only trying to develop a
When management practices organisational behaviour, itis not
better employee but it also wants to develop a “better person’ ini terms of all'round growth
and development, The benefit will extend beyond the firm into the larger society in which
each employee lives,
5. Motivated behaviour, It is the urge of the individual to satisfy a particular need that
motivates him to do an act. The motivation could be positive or negative. Motivation is
essential for the proper functioning of organisations. The organisation can show’ to its
‘employees how certain actions will increase their needs fulfillment.
‘4 Value of the Person, It is more an ethical philosophy. It stresses that people are to be
treated with respect and dignity. Every job, however simple, entitles the people who do it
to proper respect and recognition of their unique aspirations and abilities. Since
‘organisational behaviour involves people, ethical philosophy is involved in one way or the
other,
ature of an organisation can be understood with the help of the description of following
moo This also Si socal organisation or social structure. It can be further
@) Fel en. This scl ssa, wich evo
foeeiea and economic stem based on the
vi characterized by homage, lena
forfeiture, ii fa
(b) Patriarchate. This is social system, which
and title or sumame traced tough Re ore be the fam head
in Europe in the 8th Century
‘holding of land and relation of lord to
and military service of tenants, and
© Matriarchate. This is social system, ix Which a female is
head and title or surname 4 - *
a 2]Introduction to Psychology For Managers ia
(d) Meritocracy. This is a social system, in which power vests in the hands of the person
with superior intellects.
(©) Class Structure; This is a social system of different classes with in a society.
(8) Segregation. This is a social system, ‘which provides separate facilities for minority
groups of a society. :
6. Mutual Interests, Organisational relationships are most likely to be strong if different
groups can negotiate strategies. This can be defined as the interests that are common to
both the parties and are related to the accomplishment of their respective goals, This space
for sharing ideas builds trust. Individuals who have shared mutual interests are likely to
make their organisation the strongest, because even though the views are different they
have a shared concern for similar objectives. It is important for the individuals to think
about their issues openly, and to incorporate the perspective of their colleagues. This helps
to build sustainable and harmonious activities that can operate in the mutual direct
interests of the organisation.
FIELDS OF STUDY
The relationship of OB with other fields of study is depicted in the following, diagram,
nesamenen me
Organisational behaviour is an interdisciplinary approach as it has borrowed concepts, theories,
models and practices of physical sciences as well as social sciences. The main features of
organisational behaviour are primarily based on behavioural sciences. The organisational behaviour
is studied in relation to psychology, sociology, political science, anthropology, economics, science,
technology and environmental sciences. OB is, in fact, called an applied behavioural science.
© PSYCHOLOGY
‘The term ‘psychology’ is derived from the Greek World ‘Psyche’ which means ‘soul! or ‘spirit’.
‘Organisational behaviour studies human behaviour which is concerned mainly with the psychology
of the people. Psychology, especially, industrial or organisational psychology is the greatestiM "
contributor to the field of organisational behaviout. Paychologists stady behaviour and industria or
omnia psychologists deal specifically with the rs Se ceasemtd
and
Saree me et ey
‘ psig iste ry ander different working conditions, ste
aaa ee role bxixviour of enployees, Job selec, performance SPP-at® 2nd
noe a with the use of theories and models. Group
bavi eae as . 4 and moulded with the use of theories of Social
Pepcelgy. Te contain sts oraz, aide emplYees news
as a subject of social psychology have a great influence on behaviour, Thus, many of the concepts
wish eae ie o. ing, motivation ete. are also central to the students of
oma ‘2 re We can conchide, that the contribution of psychology in the field of
organisational behaviour is quite significant,
3 socioLocy
Sociology also has a major impact onthe study of organisational behaviour. Sociology makes use
’ of scientifie methods in accumulating knowledge about the social behaviour of the groups
Sociologists study social systems such as a family, an’ lass, a mob or an organisation. It
specifically studies, social groups, social behaviour, society, customs, institutions, social classes,
status, socal mobility, prestige etc, It studies the behaviour ofthe people in the society in relation to
their fellow human beings. Sociology’ contributes to organisational behaviour through its contribution
to the study of interpersonal dynamics like leadership, group dynamics, communication etc
Socialisation is accepted for moulding the behaviour af people where the capacities of individuals to
learn and respond to social systems, values, norms and social roles are accelerated! and appreciated
‘The attitudes and behavioural patterns of individuals and groups are greatly influenced by
co ANTHROPOLOGY
Anthropology is concerned with the interactions between people and their environment
‘especially their cultural environment. Culture is a major influence on the structure of organisations a
wel as onthe behaviour of people within organisations. “Anthropo’ isa Greek word which means
man’ and ‘logy’ means ‘Science’. Aristotle defined anthropology as a science of man’s sl
understanding. It particularly studies civilisation, forms of cultures and their impact on individuals
and groups, biological features of man and evolutionary patter, speech and relationship among
languages. Anthropology contributes in understanding the cultural effects on organisational
en effects wae epg norms, oe cohesion and interaction. Socialisation
spreading | missions of organisation among employees. Anthropolox)
influences the employees behaviour through motivation, interaction, goal setting, decision maki
coordinating and controlling. ae an
1 POLITICAL SCIENCE
In recent times, political science has also started interesting the or
pi i a Rp of a ba a = |
ob,Introduction to Psychology For Managers 145
interested in how and why people acquire power, political behaviour, decision making, conflict, the |
behaviour of interest groups and coalition formation. These are also major areas of interest in |
organisational behaviour.
Political parties and Government directly intervene in many activities of the organisation.
Specific principles of political science are observed in organisational behaviour for delegation of
authority and responsibility, conflict resolution and stress management.
In organisations, people strive for power and leadership recognition. Political Science helps in the
management of men in an effective and efficient manner. Political perspectives and government
policies are thoroughly analysed for moulding and modifying the behaviour of people, because they
greatly influence the organisation. The law and order of the country influence the people at work.
a ECONOMICS
Economists study the production, distribution and consumption of goods and services. Students
of organisational behaviour share the economist’s interest in such areas as labour market dynamics,
Productivity, human resource planning and forecasting, and cost benefit analysis.
The economic conditions of a country has long lasting impact on organisational behaviour. If
psychological and economic expectations of employees are met, they are satisfied and become high
performers. Economic systems include financial, commercial and industrial activities which have
§feater influences on the behaviour of the people. The consumption pattern in society monitors the
behaviour of employees. Consumption oriented society witnesses a different employee behaviour
from that of a production oriented society.
‘| SCIENCE
Science is systematised knowledge. The scientific methods attempt to produce information that is
Objective in the sense that it is certifiable and independent of a person's opinions or preferences.
‘Scientific method is the backbone of organisational behaviour. Organisational behaviour is based on
7 study of facts, behaviour, their relationships and predictions. New scientific
methods viz. observation of facts and behaviour, explanation of facts and relationships and coming to
‘onelsion thereon have become important bases of the study of organisational behaviour. The cause
and effect relationship is also established in organisational behaviour like that of science. The
verification of the relationship and its quantification has added to the importance of organisational
behaviour. It becomes relatively easy to predict and mould the people at work. A researcher, in the
field of OB investigates new facts, tests theories, hypothesis and models, Personal bias, superfluous
Sonelusions and whimsical approaches are avoided in the study. A systemetised form of inquiry is
used for the study of various problems,
‘0 TECHNOLOGY
__ Thelevel of cal development affects the behaviour of the employees. Modern age is the
‘of computerisation. It has come within the framework of the model of organisational behaviour.
e study of technological development is becoming essential for understanding the organisational
haviour, because people are influenced by the technological development. Human behaviour
and environments develop as a result of technological innovations. Technology changes116 mt “Introduction to Psychology For Manayy,
behaviour, production activities, distribution and storage activities. To cope up with w,
poe cork oe eee and/or technically skilled. They sho, id
have to be responsibility conscious and development oriented, Unskilled or irresponsible wi) hav
‘he place in the modern innovative age. Thus, technological development leads to effective Work
behaviour, iimproved organisational culture and helpful work environment.
T_ ENGINEERING
Nowadays, medicine has also come in connection withthe study of human behaviour at wor
Tress oming avery common problem inthe organisations as well as inthe people Working ir
the organisations. Research controlling the causes and consequences of stress in and Out of
organisational settings, is important for the well
: being of the individual as well as the organisatcs,
Medicine hlpsin the control of tes as well as tess related problema, —"
behaviour in work
common purpose.
People together to accomplis!
mB Onganibing, leading and directing
‘Possible in order to reach the
hal culture which all in
nthas failed, Both OB an.
‘partly On the debate in the
St Seienice and. anthropolo;)
and organization
¥ @ relation between Obto management. OB is concerned with people in the organization- individually as well as in groups.
it attainment of organisational objectives. As the attainment of |
these objectives is not possible without the human beings in the organisation, therefore, OB becomes
an integral and significant part of management.
‘The subject of OB is intended to support the knowledge necessary for the managers. Managers
perform the managerial functions of planning, organizing, directing and controlling: they need to
know what impact their decisions will have on the people. Moreover, they have to get the things
done through people and with people, an understanding of the behaviour of the people is critical for
them,
It can be said that management and OB are interrelated. Management can’t work effectively and
successfully without OB and OB has no use and meaning without management.
Organisational behaviour is concerned with understanding and describing human behaviour in
an organisational setting. It seeks to shed light on the complex human factor in organisations by
identifying causes and effects of human behaviour. It is called a social science because its main
concem is people and their behaviour. Organisational behaviour studies four determinants of
behaviour in organisations-individuals, groups, interpersonal and intergroup. Organisational
behaviour is concerned with the behaviour of individuals and groups and the impact of structural
design on the behaviour af individuals and groups, The knowledge of all these is applied to the
organisation to make the organisation work more effectively. Thus, the role of managers include
understanding the human behaviour and influencing the human behaviour, This is discussed in
detail as follows.
© A. UNDERSTANDING HUMAN BEHAVIOUR
‘Organisations are people and without people there would be no organisations. If the managers
are to understand the organisations in which they work, they must first understand the people who
make up the organisations, Organisational behaviour is the tool, which helps the managers in
understanding human behaviour in all the directions in which the human beings interact.
Human behaviour can be studied from the point of view of the following four levels —138 _ Introduction to Psychology For Manage,,
i factors. The job
individuals is affected by a number of psychological, social and a Bee oF
organisational behaviourist isto integrate these factors to help in understanding human
2 Interpersonal Behaviour
Behavioural Sciences also provide means for understanding interpersonal behaviour in th,
organisations. In organisations, two person. relationship is. inevitable. Interpersonal interactio,,
Tepresents man’s most natural attempt at socialisation. By studying behavioural sciences, th
‘managers can understand themselves and the others better. This will help in improving interperson,)
relations also. The techniques, generally, used for studying interpersonal behaviour are study 0,
Perception, role analysis, transaction analysis etc.
3. Group Behaviour
Hawthorne studies have proven that an individual behaves differently as an individual and as ,
member of the group. His behaviour is often modified by group norms. Group behaviour has a
synergic impact an the performance, Group formation, behaviour and interactions are studied in the
course of the organisational process, Management can use group dynamics for better communication
effective leadership and building high morale,
4, Inter Group Behaviour
Organisations consist of large number of groups, which leads to complexity of relationships, It
'S very important for the managers to understand the group relationships. The cooperation,
oordination and conflicts within groups influence performances. Organisational behaviour helps the
managers in achieving cooperative group relationships through interaction, rotation of members
‘among groups, avoidance of win-lose situation and focus on total group objectives.
-[Link] THE HUMAN BEHAVIOUR
Influencing the human behaviourIntroduction to Payhology For Mawagers a
tf situational approaches for the development of leadership. An
activities. There are trait, goal a with the right type of leadership. A competent leader uses all
Sane ae at the maximum levels for achieving the organisational goals.
pees Yee the individuals, groups and various other aspects of the
Motivation in an organisation is essential for ongoing work. Human beings work not only for
money but also for getting job satisfaction. The job of a manager in the organisation is to get things
done through others. He will be successful in his job when he can motivate his subordinates to work
for organisational goals. Organisational behaviour helps the managers in understanding the needs
and desires of the subordinates and other factors which affect their motivation. The monetary and
non-monetary awards are used as incentives to motivate the subordinates.
3. Communication
People came in contact with each other through communication, thus, communication is known
as the building block of the organisation. To achieve organisational effectiveness, the communication
‘must be effective. Behavioural sciences help in improving communication in the organisation. The
communication process and how it works in interpersonal dynamics is evaluated by behavioural
selences. Organisational behaviour analyses the factors that affect communication $0 as to make it
more effective.
4. Organisational Change and Development
, v Change can be introduced tkrough group dynamics and
Proper education of employees through effective communication. The benefits of change should be
highlighted and information should be shared with all those likely to be afected by the change
5. Organisational Climate
Organisational climate is the sum total of all the organisational situations affecting human
behaviour. Organisational behaviour views organisational climate in totality rather than merely
improving physical working conditions, or increasing employees satisfaction by changing isolated
‘Work process. Organisational climate is the creation of an atmosphere of effective supervision, the
m ‘onain Managers
2 others at the work place anc
120
id affect
opportunity for the realisation of personal goals, good en il pane ee %
sense of accomplishment. Organisational climate om participative ship, two
i human behaviour. Organisational behaviour creates for the job.
D weay communication, adequate compensation anid DEH=S MT et sindy which cay
ES is an exciting
. for the realisation of Organisations)
To conclude, it can be said that organisational behaviour oe
help the managers in effective handling of hae e ‘behaviour.
‘goals. Specifically, it helps in understanding at managing human ©
THE HISTORICALE : ; emerged as a distinct field of stuciy
According to most of the estimates, ast Seal further back in time. The Great Gree},
traced Another great and respecte:
around the 1940's, However, its origin can be it leadership.
Philosopher PLATO had wrote about the importance of "68 “1m 500 B.C. the writin;
Philosopher Aristotle had addreswed the topic of persuasive COmmnEnE atte)” ia
Chinese Philosopher Confucius had started emphasising ethics -
In 1776, ‘Adam Smith advocated a new form of organisational structure based oe
labour. He used the Pin Manufacturing industry for hisjexamiples. Though Adam — ones
economist, but his book “Wealth of Nations publehediini ize; emplinsised on the economic
advantages that organisations. and society can reap from the’ division ee nt work
specialisation.
The work of Adam Smith was further p and expanded by a British Mathemati
Professor Charles Babbage in 1832. He expanded on the virtues of division of labour by saying that
economies from work specialisation should be as relevant to doing mental work as physical «ork
Nowadays, we take specialisation for granted among professionals ie. doctors, lawyers, professor
etc. but it was unheard of in nineteenth century England.
A Welsh entrepreneur, Robert Owen is an important name in the history of OB because he we-
one of the first industrialists who argued for regulated hours of work for all workers, child
Jaws, public education, company supplied meals at work and business involvement in community
Projects, He was more than a hundred years ahead of his time when in 1825, he ised how the
growing factory system was demeaning to workers, —
One hundred years after Ad
ore et tm Sith, Gensan Saco Max Weber wrote about rin
Soon after Max Weber, F.W. Taylor int =
motivate employees. Taylor troduced the systematic use of goal setting and rewards «
sought to create a mental revolution among both the ‘
management by defining clear guidelines for improving on among, workers and
Scientific Management as well as the other papers ere efficiency. The Principles of
USA. but also in France, Germany, Russi ane ‘Wrote, spread his ideas not only in
n of123
ssa dite isations came into limelight in the 1930s, mainly as a result of
eas studies led fo a ew emphasis on the human factor in the organsations. In
saa on ine ‘Maslow and Douglas McGregor proposed that organisational
gets t practices had to be altered so as to bring out the full production and ™
as eas ip heaineit 1 by David MeCellenad, Fred Fiedler, Herzberg and other behavioural
scientists during the 1960's and 1970s provided managers with greater insights into employee
behaviour.
FOUNDATIONS OF ORGANISATIONAL BEHAVIOUR
Modern organisational behaviour has a rich intellectual history, which provides a base for what
we know today. In the classical theories of organisation as well as management, the roles of
individuals and groups were ignored altogether or at the most given minimum attention. A few
recognised the importance of individual, group and social processes
writers and managers, however,
in the organisation. Robert Owen a British industrialist tried to improve the condition of industrial
workers in the early nineteenth century. Early in the twentieth century the noted German
Psychologist Hugo Mustetberg argued that the field of psychology should provide important
insights into areas such as motivation and the recruitment of new employees. Mary Parker Follet was
another writer who believed that management should become more democratic in its dealing with
employees. She worked mainly as a social worker among the poor in the Roxbury Section of Boston.
Although, her work career did not involve management, she made several basic and enduring
observations about organisations and management during the mid 1920s to the early 1930s. Three of
her observations about organisations and management were-power, conflict and leadership. She had
a positive view of power and saw it as basic to organisations and management. She also believed that
power should be a jointly developed power, a coactive not a coercive power. Regarding conflicts, she
believed that conflicts, in the organisations, could not be avoided. Instead of running from conflicts
managers should put conflict to use in their organisations. Her creative suggestion was that the
integration of desires was the way to manage the conflicts, This approach finds a solution that fully
meets the goals of each party in dispute. Both parties get what they want. With integration, conflict is
put to work to help discover new, creative solutions to problems and issues in organisations. Follett’s
view of the personal qualities of a leader gives a vivid picture of the characteristics of a good leader.
“Tenacity, steadfastness of purpose, tactfulness, steadiness in stormy period.”
The views of Robert Owen, Hugo Musterberg and Mary Follett hold minority views. They were
not widely accepted by practicing managers. Not much change took place till the 1930s in the
management's perception of the relationship between the individual and the work place. In the 1930s
a series of research studies led to the emergence of organisational behaviour as a field of study. A
ue of major findings of researches relevant to the development of organisational behaviour is
as i
© The Hawthorne Studies
The Hawthome Studies were a large research programme conducted vetween 1927 and 1932 at
Western Electrie’s Hawthome plant near Chicago. The plant produced various parts for telephone
Switching Systems. This research was a landmark work done in the Social Sciences in the United
States. Several researchers were involved in this study, the best known being Elton Mayo, Pritz