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IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE MASTERS IN MANAGEMENT STUDIES UNIVERSITY OF MUMBAI
SUBMITTED BY Manmeet Kaur Gill-28 Silky Sharma-06 Archana Birambole-45 Sheetal Gaikwad-53 Reshma Salve-38
MAHATMA GANDHI MISSION S INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH KAMOTHE, NAVI MUMBAI
Models of OB 13 8. Concept of Organizational Behavior 4 3. Traditional and New Approaches to OB 11 7. Needs for Study of Organizational Behavior 8 5. Individual Perspective 15 9. Introduction 4 2. Genesis of Organizational Behavior 6 4. 1. No Topics Page no. Integrative Perspective 18 2 . Goals of Organizational Behavior 10 6.Table of Content Sr. Organizational Perspective 17 11. Small and Large Group Perspective 16 10.
which precedes the behavior and the consequences that follow the behavior. labour market. these elements are influenced by the external environment. suppliers. According to Luthans. or even a small one. According to Keith Davis. People also use technology to get the job done. technology. When people join together in an organization to accomplish an objective. and international. Some of the main indirect forces are: economic. socio cultural. structure. The analysis of these forces provides an insight for understanding the behavior. CONCEPT OF ORGANIZATIONAL BEHAVIOR Organization is a place where two or more people work together in a structured way to achieve a specific goal or set of goals. structure. Organizational Behavior is an academic discipline concerned with understanding and describing human behavior in an organizational environment. Running a large company. managers have been grappling with the idea of the channelization of human energy towards the attainment of the organizational goals. According to Gary Johns. There are two types of environmental forces: direct and indirect. The key elements in an organization are: people. In addition. is no easy task. technological. Moreover. and they influence it. 3 . organizations are social interventions for accomplishing goals through group efforts. and external environment in which the organization operates. competitors. As you must be aware that human behavior is guided by the internal and external forces. some kind of structure is required. in understanding the variable it is extremely important to separate the actual behavior events from the outcomes of the events. thus it is any response or reaction of an individual. Thus the study of organizational behavior provides guidelines for influencing the behavior of the persons in the organization. Everybody wants to understand others behavior. Behavior is anything that the human does. The understanding of human behavior play very important role in this endeavor as well. The basic unit of behavior is activity. So there is an interaction of people. Various environmental forces influence organizations. Goals are fundamental elements of organizations. The field of Organizational Behavior provides many helpful insights into understanding the complexities of people s behavior on the job. and regulatory agencies. and technology. political. Behavior is response to stimulation that can be observed. Some of the main direct forces are: customers. Specific observable behavioral events and their patterns provide useful data in order to analyze the interaction. Understanding others behavior helps the persons to influence them.INTRODUCTION In a simple term organizational behavior refers to the behavior of persons in an organization. Organizational Behavior is the study and application of knowledge about how people act within organizations.
interpretive.g. According to Luthans. · An Applied Science: Organizational Behavior is oriented towards understanding the forces that affect behavior so that their affects may be predicted and guided towards effective functioning of organization. According to Robbins. and develop. · Scientific Method: Organizational Behavior follows the scientific method and makes use of logical theory in its investigation and in answering the research questions. According to Baron and Greenberg. · Contingency Approach: There are very few absolutes in Organizational Behavior.It seeks to shed light on the whole complex human factor in organizations by identifying causes and effects of that behavior. person-culture fit. but it is not the whole of management. Organizational Behavior is the field that seeks knowledge of behavior in organizational settings by systematically studying individual. The approach is directed towards developing managerial actions that are most appropriate for a specific situation. 4 . prediction. According to Joe Kelly. This issue will be clearer to you after reading the section on goals of Organizational Behavior in this section. and their effect on individual members. critical and creative science. constituent groups. and control of human behavior in organizations. groups. and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organization s effectiveness. · Concern with Environment: Organizational Behavior is concerned with issues like compatibility with environment e. Organizational Behavior is the systematic study of the nature of organizations: how they begin. Organizational Behavior is related with the conceptual and human dimensions of management. This issue will be clear to you after reading the section on genesis of Organizational Behavior in this unit. group. · A Systems Approach: Organizational Behavior is a systematic vision as it takes into account all the variables affecting organizational functioning. · Value Centered: Organizational Behavior is a value-centered science. other organizations. and organizational processes. On the basis of definitions stated and various other definitions. It is empirical. grow. cross-cultural management etc. Organizational Behavior is a field of study that investigates the impact that individuals. Organizational Behavior is directly concerned with the understanding. and large institutions. we can draw following conclusions related to nature and scope of Organizational Behavior: · Interdisciplinary Approach: Organizational Behavior integrates knowledge from various relevant disciplines. · Behavioral Approach to Management: Organizational Behavior is directly connected with the human side of management.
experiences.· Utilizes two Kinds of Logic: It utilizes both objective and subjective logic. persuasive literature etc. They are: · Individual behavior · Inter-personal behavior · Group behavior and group dynamics · Organizational issues · Environmental issues. and learning from stories and cases. Organizational Behavior focuses on five levels of analysis. gut feeling. Subjectivity is concerned with deciding about an issue through intuition. metaphors. 5 . common sense. Objectivity is concerned with reaching a fact through empirical analyses.
Some of them are: group dynamics. motivation. cost-benefit analysis. perception. Anthropology: Anthropologists are more concerned with the science of mankind and the study of human behavior as a whole. the beliefs. Political Science: Political Science as a subject has many ingredients. forecasting. political manipulation. are common to the fields of anthropology and OB. organizational environment. The main focus of attention is on the social system. Economics: Economic environment influences organizational climate. and self-interest enhancement. and decision making. one of the main issues demanding attention is the cultural system. relationships among social groups and societies. cross-cultural analysis. group decision making. conflict resolution. and the comparison of behavior among different cultures. and integration of individual needs with group activities. attitude. Issues like. All disciplines have made an important contribution to the field of Organizational Behavior. comparative values. networking. leadership. learning. communication. and the maintenance of order. from the field of psychology. organizational change and development etc. Many themes of interest directly related to OB are. and job satisfaction etc. organizational structures. formal and informal organizations. 6 . customs. power and politics. coalition. Organizational Behavior has developed by taking many issues from sociology. emotions. rather than it is like a compound subject. These disciplines are: Psychology: Psychology is broadly speaking concerned with the study of human behavior. As far as OB is concerned. The social psychologists are concerned with intergroup collaboration. ideas and values within a group or society. OB has learned a great deal from such economic factors as labour market dynamics. and they can suffer adverse reactions to unfamiliar environments. organizational culture. which directly affect human behavior in organizations since politics dominates every organization to some extent. with integrated weaving of various disciplines. individual culture. The study of behavior can be viewed in terms of various main disciplines.GENESIS OF ORGANIZATIONAL BEHAVIOR Behavioral Science or Organizational Behavior is not an elemental subject. comparative attitudes. Sociology: Sociologists are more concerned with the study of social behavior. human resource planning. with traits of the individual and membership of small social groups. In modern terminology. People learn to depend on their culture to give them security and stability. Social Psychology: Social Psychology examines interpersonal behavior. Organizational Behavior is an interdisciplinary approach to the study of human behavior in organizations. values. The main focus of attention is on the individual as a whole person. Organizational Behavior learns a great deal in issues like personality. effect of change on individual. marginal utility analysis. individual s responsiveness to change.
Issues like work related stress. Accordingly. and compensation management. job design. 7 . work flow analysis. work measurement.Engineering: Industrial Engineering area has contributed a great deal in the area of man-machine relationship through time and motion study. Semantics: Semantics helps in the study of communications within the organization. tension and depression are common to both: the area of medicine. Medicines: Medicines is one of the newest fields which is now being related to the field of OB. and OB. adequate and effective communication is very important for organizational effectiveness. Each of these areas has some impact on OB. Misunderstood communication and lack of communication lead to many behavior related problems in the organization.
NEEDS FOR STUDY OF ORGANIZATIONAL BEHAVIOR A study of OB is beneficial in many ways. After studying this whole subject you would realize that contributions of OB towards building the following skills and values are unparalleled: · Self development · Personality development · Development of human values and ethical perspective · Managing stress and achieving mental hygiene · Creative use of emotions 8 . · It helps in building cordial industrial relations. · It helps in the field of marketing through deeper insight of consumer behavior. · It helps in building motivating climate. employee turnover. Study of OB can be said to be most important contributor towards building managerial skills. · It helps in predicting behavior and applying it in some meaningful way to make organizations more effective. and managing and motivating field employees. · It implies effective management of human resources. Some of the benefits of studying OB are following: · It helps an individual understand oneself. organizational citizenship. · It helps managers in getting the work done through effective ways. thus making an attempt to fulfill psychological contract between individuals and the organization. It is a systematic study of the actions and attitudes that people exhibit within organization. and also helps to reduce dysfunctional behavior at work place like absenteeism. efficiency. dissatisfaction. · It helps to develop work-related behavior and job satisfaction. effectiveness. · It emphasizes the interaction and relations between the organization and individual behavior. · It helps to improve functional behavior leading to productivity. tardiness etc.
culture 9 . conflict handling · Team building · Leadership · Creating effective organizational · Managing change · Continuous development through behavioral interventions. counselling. coaching. politicking. mentoring.· Creating learning individual and learning organization · Managing creativity and innovation · Motivation and morale · Job satisfaction · Effective communication · Interpersonal effectiveness including persuasion. negotiation. decision making. goal setting.
a good empirical research should have its foundation in a viable theory and should add to the body of existing knowledge. For example it appears that high job satisfaction would necessarily lead to high organizational commitment but most of the studies have stood against this apparently obvious hypothesis. Theory building and empirical research co-exist and reinforce each other. in this long drawn conclusion you may be far away from the fact. the theory is either modified and retested. accounting. A good theory has to be of practical use and empirical validation would confirm this. and several hundreds of research studies still continue to investigate facts. If these are confirmed. confidence in the theories is increased. Likewise. mathematics etc. There are mainly three goals of OB: · Understanding behavior · Which variables are important? · How strong are they? · How do they interrelate? · Predicting behavior · What patterns of behavior are present? · What is the cause effect relationship? · Controlling behavior · What solutions are possible? · Which variable can be influenced? · How can they be influenced? 10 . One of the objectives of a course in OB is to replace popularly held notions. However in the field of human behavior. you would not claim that you know it. In the areas of physical science. confidence is diminished. Since 1950s till date hundreds of thousands of research studies have been done on various aspects of OB. yet through our accumulated knowledge it may appear that we know it and. Once a theory has been formulated. if you do not know a concept. though we may not know a fact.GOALS OF ORGANIZATIONAL BEHAVIOR Field of OB faces a special challenge. often accepted without question. OB attempts to test theories through scientific research process. At this point. predictions derived from it are tested through direct research. with science-based conclusions. or completely rejected. If they are disconfirmed.
Frank and Lillian Gilberth. · The Behavioral Science School: mainly developed by Abraham Maslow. · Emphasis on human relationship and informal organization. · The Systems Approach. Max Weber. when the Egyptian pyramids were built or even the dawn of mankind when people hunted in groups and protected their families or communities against hostile environmental forces. · Treating employees with more dignity as a wholesome person.Taylor. being a part of general management. can be traced back to 4. · Continuous effort to establish effective organizational culture and climate. · The Contingency Approach. H. · Importance to psychological contract between individuals and organization.TRADITIONAL AND NEW APPROACHES TO OB Study of human behavior.Gnatt. With passage of time following issues occurred: · Human factor became more important successively. · Emphasis given on actualizing the human potential. Herbert Simon. Chester Barnard. · Contemporary Approach.C. James March. 11 . · The Human Relations School: mainly developed by Elton Mayo through Hawthorne Experiments.L. Mary Parker Follet. Development of OB during last two centuries: · The Scientific Management Theories and the School: mainly developed by F.000 B. · Emphasis on developing managerial and human skills on continuous basis. · Classical Organization Theory School: mainly developed by Henri Fayol.. · Focus shifted from individual performance to both individual as well as group (team) performance. · Emphasis on creating synergy through team work. Douglas McGregor. · Increasing concern for people in organization.W. · Increasing importance to environmental factors influencing organization.
and spiritual quotient. It seeks to comprehend behavior in organizations by combining information from several different levels of analysis.the individual. · It has adopted a contingency approach to behavior in organization. four major features characterize modern OB: · It has adopted a somewhat more positive view of human being in work settings than prevailed in the past. continuous improvement of skills and values through training. behavioral intervention in merger and acquisition as well as in rightsizing. the group. modern OB is concerned with the issues like: managing intelligence quotient.assuming that there is nothing like permanent way of arriving at a particular solution effectively. According to modern thoughts on OB. the organization. accomplishing fulfillment of psychological contract between individuals and the organization. managing ethical practices. emotional quotient. · By drawing on several related fields. quest for quality. 12 . improving mental hygiene and overall health of members. and the environment. These variables provide parameters within which a number of interrelated dimensions can be identified . Apart from the description above. cross-culture management. managing multinational organizations etc.According to Robert Baron. it is necessary to understand the interrelationships between human behavior and other variables. · It is integrative in nature.which collectively influence behavior in work organizations. which together comprise the total organization. it has attained a high degree of sophistication about human behavior.
Its main weakness is its high human cost. develop a drive to contribute and improve them if management will give them a chance.Models of OB: Following are four models of organizational behavior are as follows: A. management provides a climate to help employees grow and accomplish in the interest of an organization. 13 . Since management supports employees in their work. Supportive Model The supportive model depends on 'leadership' instead of power or money. Hence. the manager has the power to command his subordinates to do a specific job. Supportive model D. as in the custodial approach. Through leadership. Custodial model C. Collegial model Autocratic Model In an autocratic model'. the psychological result is a feeling of participation and task involvement in an. This model assumes that employees will take responsibility. Under this model organizations satisfy the security and welfare needs of employees. employees are required to follow their orders. Autocratic model B. management's direction is to 'Support' the employee's job performance rather than to 'support' employee benefit payments. organization. As a result of economic rewards and benefits. This model leads to employee dependence on an organization rather than on boss. it is known as custodian model. Custodial Model This model focuses better employee satisfaction and security. employees are happy and contented but they are not strongly motivated. The psychological result of this model on employees is their increasing dependence on their boss. Therefore. Management believes that it knows what is best for an organization and therefore.
14 . which is unpredictable. The psychological result of the collegial approach for the employee is 'self-discipline'. In this kind of environment employees normally feel some degree of fulfillment and worthwhile contribution towards their work. This is because a model depends on the knowledge about human behavior in a particular environment. FOUR MODELS OF ORGANIZATIONAL BEHAVIOUR Autocratic Basis of Model Power Custodial Economic resources Money Supportive Leadership Collegial Partnership Managerialorientation Employee psychological result Employee needs met Performance result Authority Support Teamwork Dependence on boss Dependence on organization Security Participation Self-discipline Subsistence Status and Self-actualization recognition Awakened drives Moderate enthusiasm Minimum Passive cooperation It is wrong to assume that a particular model is the best model. Management is the coach that builds a better team. This results in enthusiasm in employees' performance.Collegial Model The term 'collegial' relates to a body of persons having a common purpose. The primary challenge for management is to identify the model it is actually using and then assess its current effectiveness. The employee response to this situation is responsibility. The management is seen as joint contributor rather than as a boss. It is a team concept.
and memory. · Building Positive Attitudes and Values: Attitudes are lasting evaluations of people.INDIVIDUAL PERSPECTIVE An organization is as good as its people. Values are at the base of attitudes and behavior. organize. knowledge. For organizations to grow continuously there is need for keeping its individuals growing through following measures: · Continuous Learning: There are many ways through which an individual learns. or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important. which are detrimental to effective organization. hence it is important to learn values in OB. which is pre-requisite for working effectively with people. According to the requirements of the work. physiological reactions. · Creating Right Perception: Perception is the process through which we select. personality can be also developed. · Keeping Individuals and Teams Motivated and providing Job Satisfaction: Motivation can be described as perhaps the most important intangible resource of the organization. There is need in organizations to create a right combination of person and job. · Having Personality and Emotions Compatible at Work Place: Personality is an individual s unique and relatively stable patterns of behavior. Positive attitudes are important ingredient of effective relationship. Cognition is the mental activities associated with thought. thoughts. and maintains behavior over time. or behavior potential. An understanding about emotions helps for self-development of individuals. which are functional and need to discourage that behavior. and skin through touch) are continuously gathering information from your surroundings. Emotions are reactions consisting of subjective cognitive states. Job satisfaction is a general attitude towards one s job. In order to be effective organizations need to promote that behavior. · Maintaining Stress-free Individuals and Environment: Stress is a dynamic condition in which an individual is confronted with an opportunity. resulting from experience. With growing competition and survival. The field of OB helps us to create right perception. nose through smell. and excellence becoming tougher. ears through audition. Motivation is an inferred internal process that activates. stress is the managerial discomfort of modern era. and expressive behaviors. groups. mouth or tongue through taste. which gives meaning to various combinations of information those you gather. and feelings. guides. it is your perception. Learning is any permanent change in behavior. constraint. of virtually any aspect of the social or physical world. Values are the basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or adverse mode of conduct or end-state of existence. Your five senses (eyes through sight. so that full potential of an individual can be utilized.in fact. It also depends on the difference between the amounts of rewards workers receive and the amount they believe they should receive. Now. objects. 15 . and interpret input from our sensory receptors. or issues.
who have come together to achieve particular objectives. 16 . It deals with issues like. Plurality of people is the essential ingredient of an organization. as it promotes difference of opinions. Leadership is the ability to influence a group toward the achievement of goals. Conflict may arise at various levels. inter-organizational level etc. when groups become more effective. For team building effective leadership styles are required. Political behavior deals with use of informal networking to make an attempt to influence others. between two persons (interpersonal level). how groups are formed. something that the first party cares about. Team building leads to high interaction among team members to increase trust and openness. Some of the important measures those OB suggests at group level interventions are: · Group Formation and Structure: Group explains the situation where two or more individuals are interacting and interdependent. and also desirable for organization. like within the person (intrapersonal level). or is about to negatively affects. politics is dysfunctional. an individual does not exist alone. · Power and Politics: Some amount of pushes and pulls are inevitable where more than two persons exist. · Conflict Management: Conflict is a process that begins when one party perceives that another party has negatively affected. how groups develop. Conflict is not necessarily bad. intradepartmental level. political behavior is functional. Organizations make effort through formal structure as well as through informal interaction to establish sound communication system within and outside organization.SMALL AND LARGE GROUP PERSPECTIVE In an organization. · Communication: Communication deals with transference and understanding of meaning. When others are influenced for narrow gains. so that others act in accordance with the wishes of the individual. which may help for improving quality of decision. and how group decisions are taken. what are the undercurrents of group dynamics. when influence is used for achieving overall goals in larger interest. Skillful managers make creative use of conflict by turning challenges to opportunities. interdepartmental level. Individual tends to exercise power to influence behavior of others. · Team Building and Leadership: These two are highly sought after issues of OB.
built on humanistic-democratic values. 17 . It depicts a system of shared meaning. It is said that only thing that is permanent is change. We are passing through an age. · Organizational Change: This is an age of change. where there is longer duration of change interventions in organizations with off and on shorter duration of stability. For long term effectiveness organizations need to investigate into. Now the mantra itself has changed.ORGANIZATIONAL PERSPECTIVE Organizational perspective of OB deals with larger issues of the organizations. as well as need to take measures for improving organizational climate and culture. Such issues influence an organization in broader ways. In earlier decades there used to be longer duration of stability with off and on shorter duration of change in the organizations. group level as well as organizational level. Such interventions may be applied at individual level. that seek to improve organizational effectiveness and employee well being. · Organizational Development: Organizational Development explains collection of planned-change interventions. A sound culture leads to conducive organizational climate. Organizational perspective of OB deal with following issues: · Organizational Culture and Climate: Organizational culture explains a common perception held by the organization s members.
In order to integrate it well with the environmental changes. If an organization does not learn to muster flexibility. as well as. The boundaries of organizations are becoming more transparent rather more fragile. · Restructuring to suit requirements of service organizations. it would not perhaps exist for long. 18 . services. organizations also do not exist in isolation. in case of rightsizing and acquisition and merger. There is constant flux of environmental impact on organization which in turn stimulate behavior pattern within the organization. task force teams. Some of them are: · Continuous improvement of people and process. and process. · Managing creativity and innovations. organizations are required to focus on many emerging issues.INTEGRATIVE PERSPECTIVE As individuals do not exist in isolation. · Cross-cultural management. · Managing multinationals. · Managing diversity. · Product innovation. · More emphasis on quality of products. · Integrating human factor with grand objectives of the organization.
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