Organizational

Behaviour
 Chapter Content- Unit 1

• Introduction to Organizational Behavior:

o Definition, Nature, Scope

o Disciplines contributing to field of OB
o The OB Model*
o Challenges & opportunities of OB
o Diversity in Organisations
 Introduction
The study of organizations and of the
collection of people within them together
comprises the field of organizational
behavior.

Organizational behavior (OB) is the study of

human behavior in organizational settings,
the interface between human behavior and
the organization, and the organization itself.
Organizational Behavior is a field of study that
investigates the impact that individuals, groups,
and structure have o n behavior within
organizations for the purpose of applying such
knowledge towards improving an organization's
effectiveness.
Nature of OB
A field of study and not adiscipline
Interdisciplinary Approach
An Applied Science
Normative and Value Centered
Humanistic & optimistic
Oriented Towards Organizational Objectives
A total Systems Approach
 Scope of OB

A complex set of forces affects the nature of

organizations today.
It can be classified into four areas:

1. People
2. Structure
3. Technology
4. Environment/Social structure
Contd..
When people join the organization to accomplish
the goals/ objectives, some kind of structure is
required. They use machinery, gadgets &
technology to achieve the organizational goals.
At the same time they are influenced by external
environment.
The Scope of Organizational Behavior
Environment

Human Behavior in Organizational

Settings

The Individual-Organization
Interface

The Organization

Environment
/social
structure
Major Contributing Disciplines to the field
of organizational Behavior
1. Psychology: how individuals behave in response to
a stimulus.
2. Sociology: how individuals relate to groups and to
each other.
3. Social Psychology: How individuals and
organizations perceive conf lict, threats and
undergo stress.
4. Anthropology: understanding customs traditions
and social mores of people since the organization is
a microcosm of the larger society.
Contd..
5. Political Science: Understanding Power,
Authority and Corporate Politics.

6. Economics: Appreciating monetary (wage

and bonus) and non monetary incentives
(housing, schooling and medical care) to
employees so that they are motivated to
produce more efficiently and effectively.
The OB Model
It is a basic structure that shows a relationship between variables at
different levels in the organization.
Organization analyze behavior of employees into three basic levels
known as OB model.
The basic OB model is built around inputs, processes and outputs.
Inputs- These are the variables that set the stage for what will occur in an
organization later.
Process- actions that individuals, groups, and organizations engage in as a result
of inputs and that lead to certain outcomes.
Outcomes- These are the key variables that you want to explain or predict, and
that are affected by some other variables. individual-level outcomes like
attitudes and satisfaction, task performance, citizenship behavior, and
withdrawal behavior. At the group level, cohesion and functioning are the
dependent variables. Finally, at the organizational level we look at overall
profitability and survival.
The OB Model
 Challenges and Opportunities for OB
❑Responding to Economic Pressures
❑Responding to Globalization
•Increased Foreign Assignments
•Working with People from Different Cultures
•Overseeing Movement of Jobs to Countries with Low-Cost Labor
❑Managing Workforce Diversity
❑Improved customer service
❑Improving People Skills, Stimulating Innovation and Change
Cont..
❑Coping with “Temporariness”
❑Working in Networked Organizations
❑Helping Employees Balance Work–Life Conflicts
❑Creating a Positive Work Environment
❑Improving Ethical Behaviour