Professional Documents
Culture Documents
Objectives:
The objectives of this unit are to:
introduce the concept of Organisational Behaviour;
outline the evolution of Organisational Behaviour;
analyze the relationship between Organisational Behaviour & other allied
fields;
examine the difference between Organisational Behaviour and Management;
and
explain the dimensions of Organisational Behaviour
Structure:
1.1 Introduction
1.2 Definitions
1.3 Significance
1.4 Evolution
1.5 Contributing Disciplines to the field of Organisational Behaviour
1.6 Organisational Behaviour & Other Allied Fields
1.7 An Organisational Model
1.8 Research in Organisational Behaviour: Types & Methods
1.9 In nutshell
1.10 Self Assessment Questions
1.11 Key Concepts
1.12 Further readings
1.1 INTRODUCTION
P
eople are the most valuable asset held by an organisation today. It is a unique and
elusive asset. The people, whom we prefer to call human resources (HR),
simultaneously represent the single greatest potential asset and the single greatest
liability that an organisation acquires as it goes about its business. According to the resource-
based view of the firm (Barney, 1996, p. 469), the strategic assets of a firm are mostly confined
to the intangibles, mainly the human capital. The human capital cannot be replicated and hence
serves as the vital factor for providing sustainable competitive advantage to a firm. While there
are other intangible assets in an organisation, HR is the only intangible asset that can be
influenced, but never completely controlled, invested in wisely, or wasted thoughtlessly, and
still have tremendous value (Weatherly, 2003). The human capital theory proposed by Schultz
(1961) regards people as assets and stresses that investment by organisations in people will
generate worthwhile returns (Baron & Armstrong, 2007, p.10). It is well accepted by the
management that people are the critical differentiators of a business enterprise. People are the
profit lever, and this is indisputable. All the assets of an organisation, other than people, are
inert. They are passive resources that require human application to generate value. The key to
sustaining a profitable company is the productivity of the human capital (Fitz-enz, 2000, p.1).
Considering the importance of the human factor in the organisations, it is imperative that we
study their behaviours. In organisational behaviour (OB) we will study the behaviour of the
people in the organisations. This chapter intends to introduce you to the field of organisational
behaviour. The reasons for studying OB will be enumerated so that one realizes the importance
of studying it. The contribution of other disciplines to the field of OB will be discussed. In
brief, we will trace the evolution of organisational behaviour. At the end, we shall explain the
OB model proposed by Robbins.
1.2 DEFINITIONS
Generally, the definition of a field of study identifies its scope, and the themes, questions,
issues, and problems that it seeks to address and to explain (Buchanan & Huczynski, 2004,
pp.2). In this section we will introduce you to various definitions proposed by eminent
behavioural scientists.
• According to Derek Pugh, organisational behaviour is “the study of the structure,
functioning and performance of organisations, and the behaviour of groups and
individuals within them.” (1971, pp.9)
• Sorge and Warner have defined OB as “the interdisciplinary body of knowledge and
field of research, concerned with how formal organisations, behaviour of people within
organisations, and salient features of their context and environment, evolve and take
shape, why all these things happen and the way they do, and what purposes they serve.”
(1997, pp.xii)
• According to S.P Robbins, OB is a “field of study that investigates the impact that
individuals, groups and structure have on behaviour within organizations, for the
purpose of applying such knowledge toward improving an organization’s
effectiveness.” (2005, pp.9)
• Fred Luthans has defined OB “as the understanding, prediction, and management of
human behaviour in organizations.”(2005, pp.21)
• According to McShane, Glinow, and Sharma, OB is the “study of what people think,
feel, and do in and around organisations.” (2006, pp.4)
• In the words of Schermerhorn, Hunt, and Osborn, OB is “the study of human
behaviour in organisations. It is multidisciplinary field devoted to understanding
individual and group behaviour, interpersonal processes, and organisational dynamics.”
(2005, pp.3)
• Greenberg and Baron have defined organisational behavior as a “multidisciplinary
field that seeks knowledge of behaviour in organisational settings by systematically
studying individual, group and organisational processes.” (2003, pp.4)
• According to Newstrom, OB is the “systematic study and careful application of
knowledge about how people—as individuals and as groups—act within organisations.
It strives to identify the ways in which people can act more effectively.”(2007, pp.3)
These definitions highlight certain characteristics of the field which are mentioned below.
OB deals with the systematic study of human behaviour in organisations. The
people in the organisations are considered from three distinct level of analysis-
individual, group and organisational.
OB has a micro perspective, since it does not study the whole organisation. It
only focuses on the human side of management.
OB is multidisciplinary in nature since it draws on a wide variety of social
science disciplines. Some of the contributing disciplines to the field of
organisational behavior are- psychology, sociology, socio-psychology,
anthropology, and political science.
OB seeks to improve organisational effectiveness and the quality of life at work
(Greenberg & Baron, 2003, pp.5).
The four goals of OB are to describe, understand, predict and control human
behaviour at work. (Newstrom, 2007, pp.4)
The key forces affecting organisational behaviour are—people (individuals and
groups); structure (jobs, relationships); technology; and environment
(government, competition, societal pressures).
The field of OB is guided by two straight-forward assumptions- first, OB
recognizes that organisations are dynamic and always changing, second, there
is no one single best way to behave in organisations and those different
approaches are called for in different situations (Greenberg & Baron, 2003,
pp.8).
1.3 SIGNIFICANCE
Basically, we all know how to study the behaviour of people. But that is based on intuition.
The study of organisational behaviour helps us to replace the intuition based study with a
systematic study. The concepts and theories of OB have been developed through scientific
researches. The cause and effect relationship among the variables have been empirical tested
before arriving at conclusions.
The study of OB helps us to know ourselves and others with whom we have to deal. Since we
are a part of an organisation and we will continue to be a part of various organisations, we
should study OB. The knowledge of OB helps us to adopt a systematic and scientific approach
towards the study of human behaviour.
Organisations are social arrangement in which people strive to achieve control over resources
in order to produce goods and services efficiently. Now, if the people don’t function effectively,
the very basic organisational goal of “survival” will be at stake. The proper functioning of the
people at work can only be ensured through apt understanding, prediction and control of their
behaviour. “Since all that happens in organisations is ultimately traceable to human action,
those who manage organisations need to take account of those factors that affect human
behaviour; not, however to manipulate humans, but to better understand their behaviour”
(Rollinson, 2005, pp.6). Finally, the proper knowledge of organisational behaviour can help a
person to build a career in management.
1.4 EVOLUTION
The systematic study of behaviour in organisations is less than 100 years old. If we trace the
evolution of management, we will know that it is just one stage of the evolving body of
knowledge of management. Until the 1940s, organisational behaviour was regarded as part of
the management studies. The early studies mainly dealt with the formal aspects of
organisations. However, there are few classical contributions which are much older to the
contributions which we are referring to. We shall discuss the evolution of organisational
behaviour in four phases, as specified by Rollinson. He has phrased the first phase as the ‘early
formative work’; second phase as the ‘precursor phase’; third one as the ‘maturity phase’; and
finally, the ‘current phase’.
Current Phase
During the current phase, various studies are being carried out and further refinements are being
made in the existing concepts and theories. Due to the emergence of more number of
internationalized organisations, there has been a growing awareness that the body of knowledge
based on American and British studies should not be regarded as the last word on matters.
There is an increasing tendency to try to incorporate an element of comparative work into topics
that are studied in OB, and a cross-cultural perspective is also becoming an important
dimension of this field of study. However, this work is still in its infancy and much remains to
be uncovered. (Rollinson, 2005, pp.7-21)
While psychology focuses on the individual, sociology studies people in relation to their social
environment or culture. Sociologists have contributed to the field of OB through their study of
group behaviour in organisations, particularly formal and complex organisations. Sociology
has contributed to research on organisational culture, formal organisation theory,
organisational structure, organisational technology, communications, power and conflict.
(Robbins & Judge, 2007, pp.13)
Social psychology is an area within psychology that blends the concepts from psychology and
sociology. It mainly focuses on the influence of people on one another. The social
psychologists have made significant contribution in the areas of behavioural change, attitude
change, communication, and group decision making.
Anthropology is the “study of societies to learn about human beings and their activities.” It
has contributions in the areas like comparative values, comparative attitudes, and cross-cultural
analysis, organisational culture and organisational environment (Robbins & Judge, 2007,
pp.12-14).
Political science is the “study of behaviour of individuals and groups within a political
environment.” The contributions of the political scientists are in the areas like conflict, intra-
organisational politics and power.
Industrial psychology applies the theories and principles of psychology to the organisational
context. Industrial psychology is defined as the study of human behaviour in the work-related
aspects of life and the application of knowledge of human behaviour to the minimization of
human problems (McCormick). Schultz and Schultz have defined industrial psychology as the
“application of the methods, facts, and principles of psychology to people at work.” It has
contributed to OB by providing various attitude measurement techniques, selection devices,
and concepts for understanding the individual differences.
The major contributions of some of the disciplines to the study of organisational behaviour are
shown in Figure 1.1.
Figure: 1.1 Toward an OB Discipline
Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Sociology
Behavioural change
Attitude change
Social psychology Communication
Group processes
Group decision making
Organization
Comparative values system
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational culture
Organizational environment
Conflict
Political science Intraorganizational politics
Power
In this section, we intend to discuss the relationship of organisational behaviour and other allied
fields like organisation theory, organisation development and human resource management.
The relationship of OB to other closely related disciplines is shown in Fig. 1.2
Human
Organisation Resource
APPLIED
Development Management
(OD) (HRM)
MACRO MICRO
Source: Organizational Behavior, 10th Edition, Fred Luthans, McGraw Hill, 2005, pp.20
From the above figure we can see that OB tends to be theoretically oriented and focuses at the micro
level of analysis. The body of knowledge of OB draws from many theoretical frameworks of the
behavioural sciences that are focused on understanding and explaining individual and group behaviour
in organisations. The lines of distinction for the related fields are becoming increasingly blurred and
there is no universal agreement of what belongs to what among academics or practitioners, most people
in the field would generally agree with what is shown in Fig. 1.1. The OT topics are included in the
study and application of OB. OT is theoretical in nature and it focuses on the macro level analysis of
the organisation. Organisation Development (OD) tends to be more macro and more applied than OB.
Human resource management is micro in nature but it more applied than OB (Luthans, 2005, pp. 21).
OB & Management: Organisational behaviour represents the human side of management, not the
whole of management. Other recognized approaches to management include the process, quantitative,
systems, and contingency approaches. In other words, OB does not intend to portray the whole of
management. OB helps the managers to develop their conceptual and human skills (Luthans, 2005, pp.
21).
1.7 AN ORGANISATIONAL BEHAVIOURAL MODEL
These dependent variables are affected by the independent variables. “An independent variable
is the presumed cause of some change in the dependent variable.” In the OB model, the
independent variables have been categorized on the basis of the level of analysis as—
individual-level variables, group-level variables and organisation system- level variables.
Individual-Level Variables: The people in the organizations have certain characteristics
which will influence their behaviour at work. The more obvious of these are the personal or
biographical characteristics such as age, gender, and marital status; personality
characteristics; an inherent emotional framework; values and attitudes; and basic ability
levels. There is little management can do to alter them, yet they have a very real impact on
employee behaviour. There are four other individual-level variables— perception, individual
decision making, learning, and motivation, which affect employee behaviour (Robbins
&Judge, 2007, pp. 32).
Group-Level Variables: The behaviour of people in groups is more than the sum total of all
the individuals acting in their own way. The people behave differently in groups than they do
when alone. The behaviour of the group members are influenced by factors like—acceptable
standards of behaviour by the group members; degree of attractiveness among the group
members; design of work teams; communication patterns followed by the group; leadership;
power and politics; and levels of conflict (Robbins &Judge, 2007, pp. 32).
Organization
Systems Level
Group
Decision
Change & making Leadership
stress Productivity
Group Work
Communication structure teams Absence
Turnover
Other Conflict Power & Group
groups Politics Human
Level
Output
Satisfaction
Biographical Organizational
characteristics
Citizenship
Personality
Perception
Deviant
Behaviour
Motivation Individual
Values &
decision making
attitudes
Human
input Individual
Ability
learning
Individual Level
Source: Organizational Behavior, 12th Edition, Robbins & Judge, 2007, pp.33
Types of research: The main types of research are as flows: (Khanka, 2009, pp.30)
1. Applied vs. Fundamental: Research carried out to generate a body of
knowledge about some phenomena of interest to the researcher, is known as
fundamental research. It is also known as basic or pure research. The research
which is carried out to find out a particular solution to a specific real life
problem is known as applied research.
2. Descriptive vs. Analytical: In case of a descriptive research, the researcher
finds out the present state of affairs that exists with respect to the research topic.
It is also known as ex post facto research. In case of analytical research, the
researcher makes analysis of the facts and figures already available to make a
critical evaluation of the matter.
3. Conceptual vs. Empirical: In conceptual research, the researcher tries to
develop new concepts or to interpret the existing ones. Empirical research relies
on the observation or experience of the researcher. Empirical research enables
the researcher to prove the relationship among the variables.
4. Quantitative vs. Qualitative: Quantitative research is based on the
measurement of the quantity. So it is applicable to phenomena that can be
expressed in terms of quantity. Qualitative research is concerned with
qualitative phenomena relating to some quality or kind.
Process of Research: For carrying out a scientific research, the following steps should be
followed: (Khanka, 2009, pp.31)
1. Identification and selection of a research problem
2. Review of literature to identify the gaps in the existing knowledge
3. Concept clarification
4. Preparation of research design consisting of objectives, hypotheses, scope of the study,
and the plan of the study.
5. Selection of research methodology
6. Collection of data
7. Processing of data involving coding, tabulation, and preparation of tables, diagrams and
charts
8. Analysis of data
9. Drafting of report
Research Methods: The research methods which are commonly used in carrying out
researches in behavioural sciences are as follow: (Khanka, 2009, pp.31-33)
1. Case Studies: Case study is a very common method of research in organisational
behaviour. In the case study method, the researcher observes what happens in an
organisation and reports the observation.
2. Laboratory Experiments: the laboratory experiments are carried out to “measure the
impact of independent variables on the dependent variables by isolating and controlling
the important variables in an artificial environment, designed by the experimenters.” In
short, it is used to identify the cause-effect relationship between the variables.
3. Field Experiments: Field experiments are basically laboratory experiments conducted
in the actual organisations, where the events are actually occurring.
4. Survey research: It is a very popular research method in organisational behaviour. In
case of survey research, a questionnaire is designed to collect the required information.
The responses are collected from the select sample. The responses are then analysed to
arrive at conclusions.
5. Simulation: Simulation is the “approximating of a real-life situation, by developing a
model composed of the important variables in the situation. This involves, obtaining an
understanding of how the real-world system operates and then developing a model,
often physical or mathematical, that captures the dynamics of the actual situation.”
1.9 IN NUTSHELL
Organisational behaviour is a field of study that investigates the impact that individuals, groups
and structure have on behaviour within organizations, for the purpose of applying such
knowledge toward improving an organization’s effectiveness. OB is a multidisciplinary
subject, and the contributing disciplines to the field of OB are psychology, sociology, social
psychology, anthropology, political science, and industrial psychology. We have also seen the
relationship between OB and other allied fields like organisation theory, organisation
development and human resource management. The Robbin’s OB model consists of sets of
dependent and independent variables and the proper understanding of their relationship helps
to understand OB better. There are nine steps to be followed in a sequential manner to carry
out a scientific research. The research methods in organisational behaviour are case studies,
laboratory experiments, field experiments, survey research, and simulation.