SHORT NOTES

Introduction to
Organizational Behaviour

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 CHAPTER 1
INTRODUCTION TO ORGANIZATIONAL BEHAVIOR
What is Organization Behavior?
Organization behavior is the study of-

• How people act in Organizations

• Why do they act as they do and
• What can we do to predict and
manage their behavior?

§ Organizational behavior is a behavioral science

§ It is an applied behavioral science built on contributions from a number
of disciplines, mainly -

• Psychology is a science of behavior. It

Psychology is primarily interested in predicting
the behavior of individuals.

• Social psychology is the scientific

investigation of how thoughts, feelings
Social Psychology and behavior of individuals are
influenced by others.

• Sociology studies people in relation to

Sociology their social environment and culture.

• Anthropology is the study of societies

Anthropology to learn about human beings and their
activities.

Management

Management is the process of

designing and maintaining an
environment in which individuals
working together in groups,
efficiently accomplish selected 2
aims.
q Who are the Managers and what are their goals?

A manager is responsible for the work

performance of group members.
He is responsible for setting objectives,
organizing resources and motivating staff
so that the organization’s aims are met.

Goals of a Manager

Provides purposeful direction to the firm

Managing survival and growth

Profit generation

Meeting the challenges of increasing competition

Maintaining relationship with various societal

segment

Maintaining firm efficiency

Responsibility of a Manager

Responsibility towards Responsibility towards

customers employees

Responsibility towards
Responsibility towards society
suppliers

Responsibility towards Responsibility towards

distributors and retailers shareholders

Responsibility towards
government

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Levels of Management

There are three levels of management found within an organization where

managers at these levels have different roles to perform for the
organization.

Top Level
Management

Middle Level
Management

Low Level
Management

Top Level Management

Top management consists of the senior executives of the organization and
their team.

• Lay down the policies and objectives of

the organization
• To coordinate the activities of different
departments according to the overall
objectives of the organization
• To be responsible for welfare and
survival of the organization

Middle Level Management

Middle management consists of divisional/departmental heads.

• Interpret the policies framed by top

management
• Ensure that their department has the
necessary personnel
• Assign necessary duties and
responsibilities to them
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Lower-Level Management
It refers to the lower level in the hierarchy of the organization. Foremen
and Supervisors comprise the operational management.

• Supervisors directly oversee the efforts

of the workforce. Their authority and
responsibility is limited according to the
plans drawn by the top management
• Supervisory management interact with
the actual workforce and pass on
instructions of the middle management
to the workers
• The quality and quantity of output and
the hard labor, discipline and loyalty of
the operating personnel

Types of Managers

ü Functional or General Manager

ü Entrepreneur or small business owners
ü Administrators
ü Team Leaders

Functional Manager or General Entrepreneurs and Small

Manager
Functional managers supervise the
work of employees engaged in
specialized activities such as
accounting, engineering, information
systems, food preparation, marketing
and sales
General mangers supervise employees
engaged in different types of tasks
that might not be related to each
other
business owners
An entrepreneur is an individual who
finds and operates an innovative
business.
Small business owners are also similar
to entrepreneurs as they manage
EntrepreneursE
several employees as it grows larger.
Entrepreneurs are small business
owners but the reverse may not be
true. An entrepreneur must have an
innovative idea

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 Administrator
An administrator is a manager who
works in the public (government) or
nonprofit organizations, including
education institutions.
Team Leaders
Referred to as Project Managers,
Task Force Leaders etc., the team
leaders are driving forces behind
various teams in the organizations.
• Team leaders manage small
groups of people while acting as
facilitators and catalyzers

The Process of Management

• Process: It means the primary functions or activities that management

performs to get things done. These functions are planning, organizing,
staffing, directing and controlling

Planning: Planning is the function of

determining in advance what is to do
be done and who is to do it. This
involves setting objectives and
targets and formulating an action
plan to achieve them effectively and
efficiently.

Organizing: Organizing is the

management function of assigning
duties, grouping tasks, establishing
reporting relationships and allocating
resources required to carry out a
specific plan. It determines what
activities and resources are required.

Staffing: Staffing simply means

finding the right people for the right
job. The functions of management
involves activities such as
recruitment, selection, placement and
training of personnel. It is also
known as human resource function.
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Directing: Directing is telling people
what to do and seeing that they do it
to the best of their ability. It
involves leading, influencing and
motivating employees to perform the
tasks assigned to them. This requires
establishing an atmosphere that
encourages employees to do their
best.

Controlling: Controlling is the

management function of monitoring
organizational performance towards
the attainment of organizational
goals. It involves establishing
standards of performance, measuring
actual performance, comparing it
with standards and taking corrective
action where any significant deviation
is found.

Effectiveness and Efficiency

Management is the process of getting things done with the aim of achieving
goals effectively and efficiently.

Efficiency means doing the task correctly in minimum time. It defines a

relationship between inputs and outputs and seeks to minimize resources.
Effectiveness means doing the right tasks and goal attainment.

The two terms ‘Effectiveness’ and

‘Efficiency’ are different but they are
interrelated. For management, it is
important to be both effective and
efficient. Management has to see that
tasks are completed and goals are achieved
(i.e., effectiveness) with the least amount
of resources at a minimum cost (i.e.,
efficiency). Effectiveness and efficiency
are two sides of the same coin.