ORGANIZATIONAL BEHAVIOR

OB is nothing more than developing our understanding and development of people skill. A
multidisciplinary field devoted to understanding individual and group behavior, interpersonal
processes, and organizational dynamics. OB is Study of human behavior in organizations.

Organizational behavior- it is made out of two words “organization” and “behavior.”

What is an organization?
Organization as two or more individuals who are interacting with each other within a deliberately
structured set up and working in an interdependent way to achieve some common objective/s.
Organizations play a major role in our lives. We possibly cannot think of a single moment in our
lives when we are not depending on organizations in some form or the other. Right from the
public transport that you use to come to your institute, the institutes itself, the class you are
attending at this moment, are all examples of organizations.
What is Behavior?
It is the behavior of the people working in an organization to achieve common goals or
objectives. Organization comprises of people with different attitudes, cultures, beliefs, norms and
values.
The study of Organizational Behavior (OB) is very interesting and challenging too. It is related
to individuals, group of people working together in teams. The study of organizational behavior
relates to the expected behavior of an individual in the organization. No two individuals’ are
likely to behave in the same manner in a particular work situation. It is the predictability of a
manager about the expected behavior of an individual.

So let us understand organizational behavior and what it exactly it means. “Organizational

Behavior” can be defined as the study of what people think, feel, and do in and around
organizations. The study of Organizational Behavior facilitates the process of explaining,
understanding, predicting, maintaining, and changing employee behavior in an organizational
setting.

OB is concerned with the study of what people do in an organization (social system) and how
their behavior affects the performance of the organization

 Individual Behavior

 Individual and group behavior

 Interpersonal processes

 Organizational Dynamics

DEFINITIONS
According to Luthans―OB is directly concerned with the understanding, predicting and
controlling of human behavior in organizations.

Stephen P Robins “Organizational behavior as a systematic study of the actions and attitudes
that people exhibit within organizations”.

Roman J. Alday― O.B as a branch of the social science that seeks to build theories that can be
applied to predicting understanding and controlling behavior in work organizations.

Organizational behavior is a field of study that investigates the impact that individuals, groups
and organizational structure have on behavior within the organization, for the purpose of
applying such knowledge towards improving an organizational effectiveness.

The value of organizational behavior is that: it isolates important aspects of the manager’s job
and offers specific perspective on the human side of management:
• People as organizations,
• People as resources,
• People as people

NATURE OF ORGANIZATIONAL BEHAVIOR (OB)

1. A separate field of study and not a discipline only: It has assumed the status of a distinct
field of study. It is a part of general management. It represents behavioral approach to
management.

2. An inter-disciplinary approach: The OB is heavily influenced by several other behavioral

sciences and social sciences like psychology, Sociology and anthropology. O.B. has
psychological foundations. The concept like learning, perception, attitude, motivation etc is
borrowed from psychology, sociology and anthropology.

3. A Normative Science: Organizational behavior is a normative science. A normative science

prescribes how the various findings of researches can be applied to get organizational results,
which are acceptable to the society. Thus, what is acceptable by the society or individuals
engaged in an organization is a matter of values of the society and people concerned.

4. A Science and Art: Organization behavior is both art and science. It is considered as art
because it contains knowledge about behavior of individuals. It is considered as science because
it involves application of science.

5. Humanistic and Optimistic Approach: Organizational behavior focuses the attention on

people from humanistic point of view. It is based on the belief that needs and motivation of
people are of high concern. Further, there is optimism about the innate potential of man to be
independent, creative, predictive and capable of contributing positively to the objectives of the
organization.

6. Oriented towards Organizational Objectives: Organizational behavior is oriented towards

organizational objectives. In fact, organizational behavior tries to integrate both individual and
organizational objectives so that both are achieved simultaneously.

7. A Total System Approach: An individual’s behavior can be analyzed keeping in view his
psychological framework, interpersonal-orientation, group influence and social and cultural
factors; Thus, individuals nature is quite complex and organizational behavior by applying
systems approach tries to find solutions for this complexity..

CONTRIBUTING DISCIPLINES OF OB

Organizational behavior is an applied behavioral science that is built on contributions from a

number of behavioral disciplines such as psychology, sociology, social psychology,
anthropology and economics.
1. Psychology
Psychology is an applied science, which attempts to explain human behavior in a particular
situation and predicts actions of individuals. Psychologists have been able to modify individual
behavior largely with the help of various studies. It has contributed towards various theories on
learning, motivation, personality, training and development, theories on individual decision
making, leadership, job satisfaction, performance appraisal, attitude, ego state, job design, work
stress and conflict management. Studies of these theories can improve personal skills, bring
change in attitude and develop positive approach to organizational systems. Various
psychological tests are conducted in the organizations for selection of employees, measuring
personality attributes and aptitude. Various other dimensions of human personality are also
measured. These instruments are scientific in nature and have been finalized after a great deal of
research. This thus provides us with useful insight into areas such as human motivation,i
perceptual processes or personality characteristics.
2. Sociology
The study of people in relation to their fellow human beings.

Sociology is the study of social behavior, relationships among social groups and societies, and
the maintenance of social order. The main focus of attention is on the social system.
This helps us to appreciate the functioning of individuals within the organization which is
essentially a socio-technical entity. Science of Sociology studies the impact of culture on group
behavior and has contributed to a large extent to the field of group-dynamics, roles that
individual plays in the organization, communication, norms, status, power, conflict management,
formal organization theory, group processes and group decision-making.

3. Social psychology
Social psychology is the study of human behavior in the context of social situations. This
essentially addresses the problem of understanding the typical behavioral patterns to be expected
from an individual when he takes part in a group. Social psychology: Working organizations are
formal assembly of people who are assigned specific jobs and play a vital role in formulating
human behavior. It is a subject where concept of psychology and sociology are blend to achieve
better human behavior in organization. The field has contributed to manage change, group
decision-making, communication and ability of people in the organization, to maintain social
norms.

4. Anthropology
Anthropology is the science of mankind and the study of human behavior as a whole. The
main focus of attention is on the cultural system, beliefs, customs, ideas and values within a
group or society and the comparison of behavior among different cultures. In the context of
today’s organizational scenario. It is very important to appreciate the differences that exist
among people coming from different cultural backgrounds as people are often found to work
i
with others from the other side of the globe. It is a field of study relating to human activities in
various cultural and environmental frameworks. It understands difference in behavior based on
value system of different cultures of various countries. The study is more relevant to
organizational behavior today due to globalization, mergers and acquisitions of various
industries. The advent of the 21st century has created a situation wherein cross-cultural people
will have to work in one particular industry. Managers will have to deal with individuals and
groups belonging to different ethnic cultures and exercise adequate control or even channelize
behavior in the desired direction by appropriately manipulating various cultural factors.
Organization behavior has used the studies on comparative attitudes and cross-cultural
transactions. Environment studies conducted by the field of anthropology aims to understand
organizational human behavior so that acquisitions and mergers are smooth.

5. Political Science
Although frequently overlooked, the contributions of political scientists are significant to the
understand arrangement in organizations. It studies individuals and groups within specific
conditions concerning the power dynamics. Important topics under here include structuring of
conflict, allocation of power and how people manipulate power for individual self-interest etc.
Political science has contributed to the field of Organizational behavior. Stability of government
at national level is one major factor for promotion of international business, financial
investments, expansion and employment. Various government rules and regulations play a very
decisive role in growth of the organization. All organizations have to abide by the rules of the
government of the day.

SIGNIFICANCE OF OB

• Managing Workplace Diversity- Work force diversity means that organizations are becoming
more heterogeneous in terms of gender, which varies from the so-called norm. It includes
women, south Indians, Bengalies, Punjabies , physically disabled, elderly etc.
• Improving ethical behavior: After understanding the mechanism of human behavior,
managers are required to control and direct the behavior so that it conforms to the standards
required for achieving the organizational objectives. Thus, managers are required to control and
direct the behavior at all levels of individual interaction. Therefore, organizational behavior helps
managers in controlling and directing in different areas such as use of power and sanction,
leadership, communication and building organizational climate favorable for better interaction.

• In define authority, power and status of an employee - The behaviors can be controlled and
directed by the use of power and sanction, which are formally defined by the organization.
Power is referred to as the capacity of an individual to take certain action and may be utilized in
many ways. Organizational behavior explains how various means of power and sanction can, be
utilized so that both organizational and individual objectives are achieved simultaneously.

• In making communication- Communication helps people to come in contact with each other.
To achieve organizational objectives, the communication must be effective. The communication
process and its work in inter-personal dynamics have been evaluated by organizational behavior.
• Essential to effectively strategy implementation- Organizations, as dynamic entities are
characterized by pervasive changes. Organizations have to adapt themselves to the
environmental changes by making suitable, internal arrangements such as convincing employees
who normally have the tendency of resisting any changes.
• Its study helps in understanding human behavior- It contains a body of theory, research,
application associated when a growing concern for in work place. The study of theories and
research experiences of organization facilitates manager for creative thinking to solve human
problems in organizations.
• Improving Quality and Productivity
• In making effective organizational structure
• In making group
• In motivation
• In organizational development

CHALLENGES & OPPORTUNITIES FOR OB

1. Responding to Globalization
If you're a manager, you're increasingly likely to find yourself in a foreign assignment. You may
be transferred to your employer's operating division or subsidiary in another country. Once there,
you'll have to manage a workforce that is likely to be very different in needs, aspirations, and
attitudes from the ones you were used to back home.
Even in your own country, you're going to find yourself working with bosses, peers, and
other employees who were born and raised in different cultures. What motivates you may not
motivate them... To work effectively with these people, you'll need to understand their culture,
how it has shaped them, and how to adapt your management style to their differences.

2. Managing Workforce Diversity

Workforce Diversity: The increasing heterogeneity of organizations with the inclusion of
different groups."Whereas globalization focuses on differences among people from different
countries, workforce diversity addresses differences among people within given countries. In
addition to the more obvious groups – women, – it also includes the physically disabled, gays
and lesbians, and the elderly. Moreover, it's an issue in Canada, Australia, South Africa, Japan,
and Europe as well as the United States".
"The melting-pot assumption is being replaced by one that recognizes and values differences"
"Workforce diversity has important implications for management practice. Managers will need
to shift their philosophy from treating everyone alike to recognizing differences and responding
to those differences in ways that will ensure employee retention and greater productivity while,
at the same time, not discriminating"

3. Improving Quality and Productivity

a) Total Quality Management (TQM)
TQM: A philosophy of management that is driven by the constant attainment of customer
satisfaction through the continuous improvement of all organizational processes.
1. Intense focus on the customer
2. Concern for continuous improvement
3. Improvement in the quality of everything the organization does
4. Accurate measurement
5. Empowerment of employees

b) Reengineering
Reengineering: Reconsiders how work would be done and the organization structured if they
were being created from scratch."It asks managers to reconsider how work would be done
and their organization structured if they were starting over"

4. Improving People Skills

5. Empowering People
Empowering: Putting employees in charge of what they do. "Decision making is being pushed
down to the operating level, where workers are being given the freedom to make choices about
schedules and procedures and to solve work-related problems. In the 1980s, managers were
encouraged to get their employees to participate in work-related decisions. Now, managers are
going considerably further by allowing employees full control of their work. An increasing
number of organizations are using self-managed teams, where workers operate largely without
bosses"

6. Coping with 'Temporariness'

"In the past, managing could be characterized by long periods of stability, interrupted
occasionally by short periods of change. Managing today would be more accurately described as
long periods of ongoing change, interrupted occasionally by short periods of stability! The world
that most managers and employees face today is one of permanent temporariness"
"Today's managers and employees must learn to cope with temporariness. They have to learn to
live with flexibility, spontaneity, and unpredictability. The study of OB can provide important
insights into helping you better understand a work world of continual change, how to overcome
resistance to change, and how best to create an organizational culture that thrives on change"

7. Stimulating Innovation and Change

"Today's successful organizations must foster innovation and master the art of change or they'll
become candidates for extinction. An organization's employees can be the impetus for innovation
and change or they can be a major stumbling block. The challenge for managers is to stimulate
employee creativity and tolerance for change. The field of OB provides a wealth of ideas and
techniques to aid in realizing these goals".

8. Improving Ethical Behavior

"Members of organizations are increasingly finding themselves facing ethical dilemmas,
situations in which they are required to define right and wrong conduct""Managers and their
organizations are responding to this problem from a number of directions. They're writing and
distributing codes of ethics to guide employees through ethical dilemmas. They're offering
seminars, workshops, and similar training programs to try to improve ethical behaviors. They're
providing in-house advisers who can be contacted, in many cases anonymously, for assistance in
dealing with ethical issues".

References
 Stephen P. Robbins, (2005), “Organizational Behavior”, Pearson Education, New Delhi, 11th ed.
 http://wwwuser.gwdg.de/~uwuf/pdfdatei/orga/Chapt1.pdf
 http://mbanotesravi.com/organizational-behavior-definition-nature/