• https://backup.pondiuni.edu.

in/storage/dde
/dde_ug_pg_books/Organisational%20Behav
iour.pdf
Module 1
Introduction

Organisational Behavior:
https://www.youtube.com/watch?v=JwGx3IyVWRA

Definition,

Meaning,

Contributing disciplines to the field of O.B.,

Individual & Group Behaviour (Concept & Framework)

OB Model (Robbins)

Challenges and Opportunities for OB,

 Module 2
Individual Behavior
Attitudes: Meaning, Sources of Attitude Formation,
Cognitive Dissonance Theory, Organisation Related
Attitudes
Personality: Meaning and Determinants, Personality traits
relevant to OB
Learning: Meaning and Theories, Reinforcement Schedules
Perception: Meaning and Process, Factors affecting
perception, Shortcuts used in perception, Attribution
Theory, The Link Between Perception and Individual
Decision Making.
Module 3
Group Behavior and Team Development

Group: Meaning, Types of Groups, Stages of group

development,

Group Properties: Roles, Norms, Status, Size and Cohesiveness,

Group Decision Making: Meaning, Strengths and Weaknesses,

Group Think and Group Shift, Group Decision Making
Techniques

Team: Meaning, Types, Team Vs. Group,

Creating Effective Teams: Team Effectiveness Model.
 Module 4
Conflict Management

➢Meaning,
➢Transition in Conflict Thought
➢Types,
➢Process and
➢Resolution of Conflict
Module 5

Motivation and Leadership

Motivation: Definition, Meaning and Theories of Motivation

• Maslow’s Need Hierarchy Theory

• Herzberg’s Two Factor Theory
• Alderfer’s ERG Theory
• Vroom’s Expectancy Theory

Leadership: Definition, Meaning and Theories

• Trait theory of Leadership,

• University of Michigan Studies,
• Hersey and Blanchard’s Situational Theory,
• Path-Goal Theory
Module 6
Work Stress

• Stress: Meaning and Definition,

• Potential Sources of Stress
• Consequences of Stress
• Managing Stress:

➢ Individual Approaches
➢ Organisational Approaches
Text Readings

1. Robbins, Stephen P. “Organisational

Behavior”
2. Prasad, L.M. “Organisational Behavior”
3. Luthans, Fred “Organisational Behavior”
4. Khanka, S.S. “Organisational Behavior”
 MODULE
1
Organisational Behavior

BBA II Sem, Section: D, E, F, G

Introduction to OB
The Hawthorne Experiments

*Studies undertaken at Western Electric Company’s Hawthorne

Plant in Chicago between 1924-1932

*Initiated by the company’s officials and later overseen by

Harvard professor Elton Mayo

*The Hawthorne researchers began by examining the relation

between the physical environment and productivity.

*It was found that productivity is not much influenced by

physical environment but by social relationship

*Only after these experiments, Organisational Behavior was

given importance as a separate discipline in the field of
Management.
The Hawthorne Experiments

1. Illumination Experiments
2. Relay Assembly Test Room Experiment
3. Bank Wiring Observation Room Experiment
4. Mass Interviewing Experiment
The answer of following questions shows the
scope of organizational behavior.

• How people behave in an organization in given

circumstances?
• Why people join and continue the membership of
an organization?
• How do the people use the structure and
technology to achieve the goals of the
organization as well as of their own motives?
• What internal and external factors influence their
behavior in and outside the organization?
Contributing Disciplines to the OB
• Political Science: studies the behavior of
individuals and groups within a political
Environment.
1. Psychology (Unit of Analysis: Individual)

#Psychology is the science that seeks to measure,

explain, and sometimes change the behavior of
humans and other animals.

1. Learning 8. Job Satisfaction

2. Motivation 9. Individual Decision Making
3. Personality 10. Performance Appraisal
4. Emotions 11. Attitude Measurement
5. Perception 12. Employee Selection
6. Training 13. Work Design
7. Leadership Effectiveness 14. Work Stress
2. Sociology
#Sociology studies people in relation to their
fellow human beings.
(Unit of Analysis: Organisation System)

(Unit of Analysis: Group)

1. Group Dynamics 1. Formal Organisation Theory

2. Work Teams 2. Organisational Technology
3. Communication 3. Organisational Change
4. Power 4. Organisational Culture
5. Conflict
6. Intergroup Behavior
3. Social Psychology (Unit of Analysis: Group)

#Social Psychology focuses on the influence

of people on one another

1. Behavioral Change
2. Attitude Change
3. Communication
4. Group Processes
5. Group Decision Making
4. Anthropology
#Anthropology is the study of societies to learn
about human beings and their activities.
(Unit of Analysis: Group)
1. Comparative Values
2. Comparative Attitudes
3. Cross-cultural Analysis
(Unit of Analysis: Organisation System)
1. Organisational Culture
2. Organisational Environment
5. Political Science ((Unit of Analysis: Organisation
System)

# Political Science studies the behavior of

individuals and groups within a political
Environment.

1. Conflict
2. Intraorganisational Politics
3. Power
Relevant Definitions:
• Managers: Individuals who achieve goals through
other people.

• Organisation: A consciously coordinated social

unit, composed of two or more people, that
function on a relatively continuous basis to
achieve a common goal or set of goals.

• Organisational Behavior:
O.B. Is the study and application of knowledge
about people act within the organisation. It’s a
human tool for human benefit. (Keith Davis and
J.W. Newstrom)
• O.B. Is directly concerned with the
understanding, prediction and control of
human behavior. (Fred Luthans).

• A field of study that investigates the impact

that individuals, groups and structure have on
behavior within organisations, for the purpose
of applying such knowledge toward improving
an organisation’s effectiveness. (By Stephen P.
Robbins)
A field of study

that investigates the impact ….

that individuals, groups and structure have on…….

behavior within organisations, …..

for the purpose of applying such knowledge …..

toward improving an organisation’s effectiveness.

 Individual & Group Behavior – Concept and
Framework

• Organizational behavior is the study of both group

and individual performance and action within an
enterprise. This field of study scans human behavior
in the working atmosphere.

• It determines its effect on job structure, performance,

communication, motivation, leadership, decision
making abilities etc.
 Behavior Analysis at Different Levels

Behavior as an individual or in a group is always

analyzed by everyone in the organization. It is
analyzed at three different levels −

• Individual level of analysis

• Group level of analysis
• Organizational level of analysis
 Individual Level of Analysis

• At the individual level of analysis, organizational behavior

includes the study of learning, perception, creativity, motivation,
and personality.

• In addition, it also includes the study of turnover, task

performance and evaluation, coordinated behavior, deviant work
behavior, ethics, and cognition.

• For example − Ram joins a company as an intern and is very open

to learning new things but as time passes and he gets promoted
his attitude towards his interns becomes rude. This is a fine
example of individual level of analysis.
 Group Level of Analysis

• Organizational behavior, at this level of analysis, draws upon the

sociological and socio-psychological discipline.

• At the group level of analysis, organizational behavior includes the

study of group gesture, intra-group and intergroup dispute and
attachment.

• It is further extended to the study of leadership, power, norms,

interpersonal communication, networks, and roles.

• An example of this level of analysis − Board of directors of company

X decide to give bonus to their workers as they have really worked
hard on a certain project.
 Organizational Level of Analysis

• Organizational behavior, at this level of

analysis draws upon sociology and political
science.

• At this level of analysis, organizational

behavior includes the study of organizational
culture, structure, cultural diversity, inter-
organizational cooperation and coordination.
• It further includes the study of dispute,
change, technology, and external
environmental forces. Some other fields of
study that adds to the interest of
organizational behavior are ergonomics,
statistics, and psychometrics.

• To have a clear understanding on the topic

and avoid any kind of confusion let’s look at
an example at different levels and try to
analyze it.
• Rohit is interested in becoming a singer as he
is interested in music and feels he can do
better in this field. While his parents force him
to pursue his job as a software engineer, as
according to his father’s perception a software
job pays well and is far better than struggling
to become a singer.
• In this case, we see Rohit and his father have a
clash of opinions, hence this is a case of
individual level of analysis.
• Extending this example further, if Rohit seeks
help from his friends on this matter his friends
will support him as they have the same
mindset support the idea of following their
own dreams, struggling and achieving their
goal. Meanwhile Rohit’s father’s friend circle
might find the idea of pursuing singing as a
career insane and support his father’s decision
of opting for a software.
• Here we see two different groups of people
with contradicting ideologies, this becomes a
case of group level of analysis.
•
Basic OB Model
• A model is an abstraction of reality, a simplified
representation of some real world phenomenon
This model defines the field of OB, its parameters and
identifies its primary independent and dependent
variables; and their linkages.
In this model, we have…….
• Independent Variable: The presumed cause of
some change in the dependent variable.
• Dependent Variable: A response that is affected by
an independent variable.
Independent Variables in The Model…….

1. Variables at Individual Level (In the form of human

input )

a) Biographical Characteristics
b) Personality and Emotions
c) Values and Attitudes
d) Ability
e) Perception
f) Motivation
g) Individual Learning
h) Individual Decision Making
2. Variables at Group Level

a) Communication
b) Group structure
c) Work Teams
d) Conflict
e) Power and Politics
f) Group Decision Making
g) Leadership and Trust
3. Variables at Organization System Level

a) Organisational Culture
b) Organisation Structure and Design
c) Human Resource Policies and Practices

• All the Independent Variables are subject to

Change and Stress
Dependent Variables (as human output) in The
Model…….

• Productivity: A performance measure that

includes effectiveness and efficiency.

• Absenteeism: The failure to report to work.

• Employee Turnover: The voluntary and

involuntary permanent withdrawal from an
organization.

……….continued
• Deviant Workplace Behavior: Voluntary behavior
that violates significant organisational norms and,
in so doing, threatens the well-being of the
organisation or its members.

• Organisational Citizenship Behavior:

Discretionary behavior that is not part of an
employee’s formal job requirements, but that
nevertheless promotes the effective functioning
of the organization.

• Job Satisfaction: A positive feeling about one’s

job resulting from an evaluation of its
characteristics.
 • Challenges and
Opportunities for OB
• Improving Peoples’ Skills.
• Improving Quality and Productivity.
• Total Quality Management (TQM).
• Managing Workforce Diversity.
• Responding to Globalization.
• Empowering People.
• Coping with Temporariness.
• Stimulating Innovation and Change.
• Emergence of E-Organisation & E-Commerce.
• Improving Ethical Behavior.
• Improving Customer Service.
• Helping Employees Balance Work-Life Conflicts.
• Flattening World.
 Improving Peoples’ Skills.
• Technological changes, structural changes,
environmental changes are accelerated at a
faster rate in the business field.

• Employees and executives are needed to be

equipped to possess the required skills to
adapt to those changes otherwise the
targeted goals cannot be achieved in time.
•
• These two different categories of skills –
managerial skills and technical skills.
• Some of the managerial skills include
listening skills, motivating skills, planning and
organizing skills, leading skills, problem-
solving skills, decision-making skills.
• These skills can be enhanced by organizing a
series of training and development programs,
career development programs, induction, and
socialization.
 Improving Quality and
Productivity
• Quality is the extent to which the customers or users
believe the product or service surpasses their needs
and expectations.
• More and more managers are confronting to meet the
challenges to fulfill the specific requirements of
customers.
• To improve quality and productivity, they are
implementing programs like total quality management
and reengineering programs that require extensive
employee involvement.
Total Quality Management (TQM)

• Total Quality Management (TQM) is a

philosophy of management that is driven by
the constant attainment of customer
satisfaction through the continuous
improvement of all organizational processes.
• Components of TQM

a) An intense focus on the customer,

(b) Concern for continual improvement,
(c) Improvement in the quality of everything
the organization does,
(d) Accurate measurement and,
(e) Empowerment of employees.
 Managing Workforce Diversity
• Workforce Diversity refers to employing
different categories of employees who are
heterogeneous in terms of gender, race,
ethnicity, relation, community, physically
disadvantaged, elderly people, etc.
• The primary reason to employ the
heterogeneous category of employees is to
tap the talents and potentialities, harnessing
the innovativeness, obtaining synergetic
effect among the diverse workforce.
• In general, employees wanted to retain their
individual and cultural identity, values and
lifestyles even though they are working in the
same organization with common rules and
regulations.

• The major challenge for organizations is to

become more accommodating to diverse
groups of people by addressing their
different lifestyles, family needs, and work
styles.
 Responding to Globalization
• Today’s business is mostly market-driven;
wherever the demands exist irrespective of
distance, locations, climatic conditions, the
business operations are expanded to gain
their market share and to remain in the top
rank, etc.

• Business operations are no longer restricted

to a particular locality or region.
• The company’s products or services are
spreading across nations using mass
communication, the internet, faster
transportation, etc.

• This a very big challenge and opportunity for

organisations in modern business world.
 Empowering People
• The main issue is delegating more power and
responsibility to the lower level cadre of employees
and assigning more freedom to make choices about
their schedules, operations, procedures and the
method of solving their work-related problems.
• Encouraging the employees to participate in the
work-related decision will sizable enhance their
commitment to work.
• Empowerment is defined as putting employees in
charge of what they do by eliciting some sort of
ownership in them.
• Managers are doing considerably further by allowing
employees full control of their work.

• Movement implies constant change an increasing number of

organizations are using self-managed teams, where workers
operate largely without a boss.

• Due to the implementation of empowerment concepts across

all the levels, the relationship between managers and the
employees is reshaped.

• Managers will act as coaches, advisors, sponsors, facilitators

and help their subordinates to do their tasks with minimal
guidance.
•
 Coping with Temporariness
• At present, the change process is an ongoing activity
due to competitiveness in developing new products
and services with better features.
• Everyone in the organization faces today is one of
permanent temporariness. The actual jobs that
workers perform are in a permanent state of flux.
• So, workers need to continually update their
knowledge and skills to perform new job
requirements.
• Today, change is an ongoing activity for most
managers.
 Stimulating Innovation and Change
• Today’s successful organizations must foster
innovation and be proficient in the art of
change; otherwise, they will become
extinction in due course of time and vanished
from their field of business.
• Organizations that maintain flexibility,
continually improve their quality, and beat the
competition to the market place with a
constant stream of innovative products and
services will sustain and become successful .
 The emergence of E-Organisation
& E-Commerce
• The marketing and selling of goods and services are
being carried out over the Internet.

• It is a dramatic change in the way a company relates

to its customers.

• At present e-commerce is exploding. Globally, e-

commerce spending is increasing at a tremendous
rate.
 Improving Ethical Behavior

• The complexity in business operations is forcing the

workforce to face ethical dilemmas, where they are
required to define right and wrong conduct to
complete their assigned activities.

• Following unethical practices have become a

common practice such as successful executives who
use insider information for personal financial gain,
employees in competitor businesses participating in
massive cover-ups of defective products, etc.
 Improving Customer Service

• OB can contribute to improving organizational

performance by showing that how employees’
attitudes and behavior are associated with
customer satisfaction.
• In that case, service should be the first production-
oriented by using technological opportunities like a
computer, the internet, etc.
• To improve customer service we need to provide
sales service and also the after-sales service.
Helping Employees Balance Work-Life
Conflicts
• Employees are increasingly complaining that
the line between work and non-work time
has become blurred, creating personal
conflict and stress.

• Employees are increasingly recognizing that

work is squeezing out personal lives and
they’re not happy about it.
 Flattening World
• Thomas Friedman’s book` The World Is Flat: A Brief
History of the Twenty-First Century makes the point
that the Internet has “flattened” the world and
created an environment in which there is a more
level playing field in terms of access to information.

• This access to information has led to an increase in

innovation, as knowledge can be shared instantly
across time zones and cultures.

• It has also created intense competition, as the speed

of business is growing faster and faster all the time.