Unit-I

Concept

Organizational behavior is the study and application of knowledge about

human behavior related to other elements of the organization such as
structure, technology and social system.

Meaning

Organizational behavior is the study of:

 Human behavior in organizational setting

 The interface between human behavior and the organization
 The organization itself

Environment

Human Behavior in
Organizational Setting

The Individual
Organization Interface

The Organization

Environment
Definition:

“Organizational behavior is a branch of the social sciences that seeks to

build theories that can be applied to predicting, understanding and
controlling behavior in work organizations.”

Nature of Organizational Behavior

1. A Field of study and not a Discipline: A discipline is an accepted

science with a theoretical foundation that serves as the basis for
research and analysis. Organizational behavior, because of its broad
base, recent emergence, and interdisciplinary orientation, is not
accepted as science. We have just begun to synthesis principles,
concepts, and processes in this field of enquiry.

2. Interdisciplinary Approach: It integrates the relevant knowledge

drawn from different disciplines for some specific purpose. Draw
heavily from psychology, sociology and anthropology. It also takes
relevant things form economics, political science, law and history.

3. An Applied Science: Unlike pure science, which concentrates on

fundamental researches, OB concentrates on application of various
researches to solve organizational problems.

4. Normative and Value Centered: Normative science prescribes how

the various findings of the researches can be applied to get
organizational results which are acceptable to the society, and it is a
matter of values to the people concerned.

5. Humanistic and Optimistic: There is an acceptance of the value of

the individual as thinking, feeling organism, and without these
considerations the organizations may not be fully operational as a
social entity. There is optimism about the innate potential of man to
be independent, creative, productive, and capable of contributing
positively to the objectives of the organization.

6. Oriented towards Organizational Objective: OB tries to integrate

both types of objective (Organizational and individual) so that these
 are achieved simultaneously-. For this it suggests various behavioral
approaches.

7. A Total Systems Approach: Human behavior can be analyzed

keeping in view his psychological framework, interpersonal
orientation, group influence, and social and cultural factors (Total
System).

Basic Concepts of the Fields

INDIVIDUAL INTERPERSONAL ORGANIZATIONAL

PROCESSES PROCESSES PROCESSES

 Foundations  Communication  Organization

 Motivation  Groups and Teams structure
 Enhancing  Leadership  Organization design
Performance  Decision  Organization
 Managing making culture / innovation
Stress /Negotiation  Change /
Development

Organization level
Individual level outcomes
Outcomes Group Level
Outcomes  Productivity
 Productivity  Performance
 Productivity
 Performance  Turnover
 Performance
 Absenteeism  Survival
 Norms
 Attitude  Constituent
 Cohesiveness
 Turnover satisfaction
 Group Satisfaction
 Stress
 Group Identity

Organizational Effectiveness
Contributing disciplines to the field of OB

1. Psychology: It is defined as science of behavior. Its contributions to

behavioral science are in the field of learning, perception, motivation,
individual and group decision making, pattern of influence and change
in organizations, group process, vocational choice and satisfaction,
communication and personnel selection and training.

2. Sociology: It is study of man’s social behavior. Its contribution is

mainly in the field of bureaucracy, role structures, social system
theory, group dynamics, and effect of industrialization on the social
behavior.

3. Anthropology: It is defined as science of man. It contributes in

understanding the cultural effects on organizational behavior, effects
of value systems, norms, sentiments, cohesion and interaction.

4. Political Science: It provides clue to conflicts in organizations, power

and authority structure, and overall administrative process.

5. Economics: Contributes in understanding the decision process,

methods of allocating scarce resources in the organization and impact
of economic policy on organizations.

6. Law: For understanding of different laws applicable for protection of

human beings in the organization.

7. History: From history, case studies have emerged which has helped
in clarifying the roles of decision makers.

Need to understand Human Behavior

OB provides way for understanding human behavior in organization at

following levels:

1. Individual Level: Why and how an individual behaves in a particular

way. OB integrates psychological, social, cultural and other factors to
provide simplicity in understanding human behavior.
 2. Interpersonal Level: Influence of one’s peer and its effect in working
relationship, or superior subordinate relationship etc. are interpersonal
interactions. Common methods of OB which provide understanding in
such areas are transactional analysis, role analysis etc.

3. Group Level: Individuals are modified by group pressure. So

individual should be studied in a group also. OB provides
understanding of how a group behaves in its norms, cohesion, goals,
procedures, communication pattern, leadership and membership etc.

4. Inter group Level: Organization is made up of many groups and so

understanding group relationships is important for managers. These
relations may be in form of co-operation or competition. OB provides
means to understand and achieve co-operative group relationships
through interaction, rotation of members among groups, avoidance of
win-lose situation and focus on total group objectives.

After understanding the mechanism of human behavior, managers are

required to control and direct the behavior so that it conforms to standards
required for achieving organizational objectives.

Controlling and Directing Behavior

1. Use of Power and Sanction: Power is referred to as capacity of an

individual to take certain action and may be utilized in many ways.
Power and sanction are formally prescribed in such a way so that both
organizational and individual objectives are achieved simultaneously.

2. Leadership: OB identifies various leadership styles available to a

manager and analyses which style is more appropriate in a given
situation.

3. Communication: To achieve organizational effectiveness, the

communication must be effective. The communication process and
how it works in interpersonal dynamics has been evaluated by OB.
The factors that affect communication have been analyzed so as to
make it more effective.
4. Organizational Climate: OB suggests the approach to create
organizational climate in totality rather than merely improving the
physiological conditions or increasing employee satisfaction by
changing isolated work process. It creates an atmosphere of effective
supervision, the opportunity for the realization of personal goals,
congenial relations with others at the work place, and a sense of
accomplishment.