OB DEFINITION

KETH DAVIS
“Organization behaviour is the study and
application of knowledge about how people
act within organition.it relates to other system
elements such as structure, technology and
the external social environment.”
FRED LUTUANS
“organization behaviour is directly concerned
with understanding prediction and control of the
human behaviour in the organizations”.

1
 Need and Importance of
Organisational Behaviour
• Understanding of Self and Others
• 1)Individual Behavior
– ii) Inter-Personal Behavior
– iii) Group Behavior
• 2) Motivation of Human Resources
• 3) Effective Communication
• 4) Effective Organizational Climate
• 5) Good Human Relations
• 6) Introduction of Change in the Organization
 SIGNIFICANCE OF OB
• Secure and comfortable environment
• To help us understand and predict organizational life
• To influence organizational events
• To improve interpersonal relationship
• To help the manager to understand the basic of motivation
• Cordial industrial relations
• Innovation and diffusion of new products
• Creating and learning
• Important to have an effective economy in every sector.

3
 NATURE OF OB
Organization allows people jointly to
 Increased specialization and derision of labor
 Use large-scale technology
 Manage the external environment
 Economized on transaction costs
 Expert power and control

4
 SCOPE OF OB
• To study human behaviour in an organization.
• Individual behaviour
• Interpersonal behaviour and
• Organization

5
 Groups, Teams and
Organizational Effectiveness
• Group
– Two or more people
who interact with each
other to accomplish
certain goals or meet
certain needs.

15-6
 Groups, Teams and
Organizational Effectiveness
• Team
– A group whose members work intensely with
each other to achieve a specific, common goal
or objective.
– All teams are groups but not all groups are
teams.
• Teams often are difficult to form.
• It takes time for members to learn how to work
together.

15-7
 Groups, Teams and
Organizational Effectiveness
• Two characteristics distinguish teams from
groups
– Intensity with which team members work
together
– Presence of a specific, overriding team goal or
objective

15-8
 Groups and Teams as
Performance Enhancers
• Advantage of synergy
– People working in a group are able to produce
more outputs than would have been produced if
each person had worked separately

15-9
 Groups and Teams as
Performance Enhancers
• Factors that contribute to synergy
– Ability of group members to bounce ideas off one
another
– To correct one another’s mistakes
– To bring a diverse knowledge base to bear on a
problem
– To accomplish work that is too vast for any one
individual to achieve

15-10
 Groups and Teams as
Performance Enhancers
• To take advantage of the potential for synergy,
managers need to make sure groups are
composed of members who have
complementary
skills and knowledge
relevant to the
group’s work

15-11
 Groups’ and Teams’ Contributions to
Organizational Effectiveness

Figure 15.1 15-12

 Groups and Teams and
Responsiveness to Customers
• Responsiveness to Customers
– Difficult to achieve given the many constraints.
• Safety issues, regulations, costs.
– Cross-functional teams can provide the wide
variety of skills needed to meet customer
demands.
• Teams consist of members of different departments.

15-13
 Teams and Innovation
• Innovation
– The creative development of new products, new
technologies, new services, or new
organizational structures
• Individuals rarely possess the wide variety of skills
needed for successful innovation.
• Team members can uncover each other’s flaws and
balance each other’s strengths and weaknesses
• Managers should empower the team and make it
accountable for the innovation process.

15-14
Groups and Teams as Motivators
• Members of groups, and particularly teams,
are often better motivated and satisfied than
individuals.
– Team members are more motivated and satisfied
than if they were working alone.
– Team members can see the effect of their
contribution to achieving team and
organizational goals.
– Teams provide needed social interaction and help
employees cope with work-related stressors.

15-15
The Types of Groups and Teams in Organizations

Figure 15.2 15-16

 The Types of Groups and Teams
• Formal Group
– A group that managers establish to achieve
organization goals.

15-17
 Formal Groups
• Cross-functional teams
– composed of members from different
departments
• Cross-cultural teams
– composed of members from different cultures or
countries

15-18
 The Types of Groups and Teams
• Informal Group
– A group that managers or nonmanagerial
employees form to help achieve their own goals
or to meet their own needs.

15-19
The Types of Groups and Teams
Type of Team
Top-management A group composed of the CEO, the president,
team and the heads of the most important
departments
Research and A team whose members have the expertise
development team and experience needed to develop new
products
Command groups A group composed of subordinates who
report to the same supervisor, also called a
department or unit,
Task forces A committee of managers or nonmanagerial
employees from various departments or
divisions who meet to solve a specific,
mutual problem; also called an “ad hoc”
committee
15-20
The Types of Groups and Teams
Type of Team
Self-managed work A group of employees who supervise their
team own activities and monitor the quality of the
goods and services they provide.
Virtual team A team whose members rarely or never meet
face to face and interact by using various
forms of information technology such as
email, computer networks, telephone, fax and
video conferences.
Friendship group An informal group composed of employees
who enjoy each other’s company and
socialize with each other.
Interest group An informal group composed of employees
seeking to achieve a common goal related to
their membership in an organization.
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 Self-Managed Work Teams
Keys to effective self managed teams:
– Give the team enough responsibility and
autonomy to be self-managing.
– The team’s task should be complex enough to
include many different steps.
– Select members carefully for their diversity, skills,
and enthusiasm.
– Managers should guide and coach, not supervise.
– Determine training needs and be sure it is
provided.

15-22
 Virtual Teams
• A team whose members rarely meet face-to-
face
• Interact by using various forms of
information technology
• Email, computer networks, telephone, fax,
and videoconferences

15-23
 Friendship Groups
An informal group composed of employees
who enjoy one another’s company and
socialize with
one another

15-24
 Interest Groups
An informal group of employees seeking to
achieve a common goal related to their
membership in an organization

15-25
 Group Size
• Advantage of small groups
– Interact more with each other and easier to
coordinate their efforts
– More motivated, satisfied, and committed
– Easier to share information
– Better able to see the importance of their
personal contributions

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 Group Size
• Advantages of large groups
– More resources at their disposal to achieve group
goals
– Enables managers to obtain division of labor
advantages

15-27
 Group Size
• Disadvantages of large groups
– Problem of communication and coordination
– Lower level of motivation
– Members might not think their efforts are really
needed

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 Group Tasks
• Group tasks impact how a group interacts.
– Task interdependence shows how the work of one
member impacts another; as interdependence
rises, members must work more closely together.

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 Definition of Conflict
• Two essential concepts in any conflict
– Divergent views and
– Incompatibility of those views
• Hostility occurs when an individual or group
actively strives for a particular outcome
precluding others’ preferred outcome.
• Leaders need to manage conflict to reduce or
prevent hostility.

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 Effects of Organizational Conflict
• Hostile conflict can result in:
– Psychological withdrawal--alienation, apathy, and
indifference.
– Physical withdrawal—absence, tardiness, and
turnover.
• Conflict can create a downward spiral in
organizational health (See Figure 10.1).
• Effective conflict management can lead to
improved organizational health (See Figure 10.2).

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 A Process View of Conflict
• Kenneth Thomas identified four parts of conflict that occur in
a sequence of episodes:
– Frustration—caused by someone’s action.
– Conceptualization—defining issues and seeking
alternative responses.
– Behavior—dictated by one’s desire to satisfy the
other’s concerns resulting in cooperation (or not),
and by one’s desire to satisfy his/her own concerns
resulting in assertiveness (or not).
Interaction of the parties follows.
– Outcome—if negative, can have long-term effects
on relationships and the organization.
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 Levels and Types
of Conflict
• Intra organization conflict
– Conflict that occurs within an organization
– At interfaces of organization functions
– Can occur along the vertical and horizontal
dimensions of the organization
• Vertical conflict: between managers and subordinates
• Horizontal conflict: between departments and work
groups

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 Cont...
• Intragroup conflict
– Conflict among members of a group
– Early stages of group development
– Ways of doing tasks or reaching group's goals
• Intergroup conflict: between two or more
groups

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 Cont...
• Interpersonal conflict
– Between two or more people
– Differences in views about what should be done
– Efforts to get more resources
– Differences in orientation to work and time in
different parts of an organization

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 Cont...
• Intrapersonal conflict
– Occurs within an individual
• Threat to a person’s values
• Feeling of unfair treatment
• Multiple and contradictory sources of
socialization
• Related to the Theory of Cognitive Dissonance
(Chapter 5) and negative inequity (Chapter 8)

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 Cont...
• Inter organization conflict
– Between two or more organizations
– Not competition
– Examples: suppliers and distributors, especially
with the close links now possible

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 Ethical Issues in
Conflict in Organizations
• Tolerance for conflict
– Manager with a high tolerance for conflict; keeps
conflict levels too high for subordinates
– Should such managers reveal their intentions
about desired conflict levels?
– Full disclosure: subordinates could leave the
group if conflict levels became dysfunctionally
stressful
– Ethical question applies equally to newly hired
employees

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 Cont....
• Deliberately increasing conflict is an effort to
guide behavior in a desired direction
– Subtle methods of increasing conflict (forming
heterogeneous groups) connote manipulation
– Full disclosure: manager states his intention to
use conflict to generate ideas and innovation
– If people are free to join a group or not, the
ethical issue likely subsides

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 Cont.....
• Experiencing intrapersonal conflict
– Requests to act against one's moral values
– Observing behavior that one considers unethical
• Reduce intrapersonal conflict
– Report unethical acts
– Transfer to another part of the organization
– Quit

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 Cont.....
• Different cultures place different values on
conflict
– Optimal conflict levels vary among countries
– Lower levels conflict in collectivistic countries than
individualistic countries

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Introduction to Group Dynamics
•Normative' View
•Set of Techniques View
•Internal Nature of Group View
 Features of Group Dynamics

• Perception
• Motivation
• Group Goals
• Group Organization
• Interdependency
• Interaction
• Entity
 Important Concepts Associated with
Group Dynamics.
• Norms
• Status
• Cohesion
• Conformity
• Groupthink
 PERCEPTION
• According to Kolasa, "Perception is selection and
organization of material which stems from the outside
environment at one time or the other to pro-vide the
meaningful entity we experience".
• According to S.P. Robbins, "Perception may be defined
as a process by which individuals organize and
interpret their sensory impressions in order to give
meaning to their environment".
• According to Joseph Reitz, "Perception includes all
those processes by which an individual receives
information about his environment seeing, hearing,
feeling, tasting, and smelling".
 Nature /Features of Perception

• Perception is an Intellectual Process

• Perception is a Cognitive or Psychological
Process
• Perception is a Subjective Process
 Importance of Perception
• Facilitates Understanding of Human
Behavior:
• Helps in Behavior Prediction
• Determination of Needs
• Effective Subordinate Dealing
 Factors Influencing Perception
• Characteristics of the Perceiver (Internal
Factors)
• Characteristics of the Target or Perceived
(External Factors)
• Characteristics of the situation
 Characteristics of the Perceiver
(Internal Factors)
• Needs and Motives
• Self-concept
• Belief’s
• Past Experience
• Current Psychological State
• Expectations
 Characteristics of the Target or
Perceived (External Factors)
• Size
• Intensity
• Frequency
• Status
• Contrast
3) Characteristics of the Situation
 PERSONALITY
• ‘Personality can e described as how he understands and
views himself, and his pattern of inner and outer
measurable traits’.Eg: We find in our day-to-day life that
some people are quiet and passive, while others are loud
and aggressive in their behaviours.

• Personality can be defined as the sum total of ways in

which an individual reacts and interacts with others and
environment. In other words, personality is an organized
behavior of an individual to react to a given stimulus in a
set manner. This is most often in the form of consistent
response to environmental stimuli.
•
Different Personality Types -A B and C
• Human behavior is not only a complex subject to understand, but it
is also cursed with the element of unpredictability. Every one tries to
fathom what the next guy is thinking about or how he or she will act
in a certain environment such as the work place.

The advances in the field of psychology and the deeper

understanding of the psyche of men, too, have come up with
personality types A B C D. People in a work place such as an office
or factory, can be grouped under any one of the personality types
a,b,c, based on the their behavior and personality traits as follows. If
the world is full of people of personality types A B C only, then it
will be a very bleak place to live in. You will be extremely lucky to
find a true specimen of the personality type A B C as described
below. Read more on personality traits list.
 Personality Type A

• The individuals that come under personality type A are of a highly

independent nature. These are the bulldozers in the personality types a, b, c.
Their ambition to leave their mark in the world singles them out from the rest.
They are self driven and know the importance of goal setting, positive
thinking and motivation. If you are interested in studying one of the specimens
of personality type A, choose one from the ranks of business leadership. They
are competitive in nature, in fact they thrive on it as if it is the fuel of their life.
They are well known for their sharpness in getting to the heart of the matter in
no-nonsense and blunt terms. Individuals of personality type A are risk takers
which characterize an entrepreneurial spirit or mind. They do have the ability
to put on the veil of practicality to solve a problem as and when required. You
will find that open minded individuals of personality type A are the ones who
welcome changes in technology and practices and who don't baulk under the
requirements and necessity of change and success.
 Personality Type B
These people can be described as the "bombers" among the personality types A,
B and C. These characters are extroverts to the soles of their boots and think
that life is nothing but getting under the spotlight and spell binding the rest.
Individuals that fall under the personality type B are human magnets that can
attract the attention of the rest in a gathering, effortlessly. This make their
type seem special among the various other personalities. These individuals
have a very engaging personality and when it comes to conversations they are
as sleek as eels. Individuals of personality type B are the people who can sell
a fridge to an Eskimo who, after the sale, thanks all his departed ancestors
and the snowman for bestowing the honor of buying something from this
wonderful man. Because of their ability to get tuned in with the people, others
find them a fountain of entertainment and charisma. Turn and focus your
microscope to sales and marketing or to those people in the field of
entertainment and you will find them in no time (aren't they in the limelight
too?). Persons of personality type B thrive on the interaction with the rest.
Your act of ignoring them or their efforts is as good as you sticking a knife in
their back, for them. Not being able to to attract your attention or making you
sway to their tune, will hurt these people.
 Personality Type C
• The apt term to describe these individuals in personality types A, B and C is
"seekers". If you are searching for a promising heir to your microscope, you can
choose any person of personality type C. These are introverts who are interested in
details which separates them from the rest of the types in personality types A, B,
C. They could turn heaven and hell upside down or inside-out, depending on their
mood, to find the detail or fact they are interested in, before taking it to pieces in
order to restart the process. These people tend to shrink from social or human
interaction. Arranging facts (these include women and their behavior, how
foolish!) around them, in logical order is what drives these people to no end. This
type of a person can live with an individual of personality type B, as happily as a
meditative pound of matter with an outgoing, bubbling, jesting and noisy pound of
antimatter. Yes, personality type C is as exactly opposite of the personality type B
as an electron with the left spin is the antithesis of the one with the right spin. You
can find specimens of personality type C personified in accountants, computer
programmers etc. These people find it difficult to get out of their shell and
communicate with other people, but are tigers when it comes to numbers and
logic. Reservedness is a mark of personality type C and they are cautious, too.
Risk taking is not a very attractive option for these people who tend not to venture
into something until they have gone over all the facts with a fine toothed comb.
 Personality Type D
• These gentlemen really believe in inertia which they have
no shortage of. These people prefer to stick to the trodden
paths and established routines over the uncertainty of
change. You will find, don't train your microscope or
binoculars on a stage bathed under a a flood of spotlight, a
true specimen of this type are people engaged as clerks.
These are followers of the spent actions and executors of the
direct commands. You will find them doing their best not to
stretch their neck out when it comes to taking responsibility
and risk. With the help of professionals in the field
of personality development and through sheer power of self
motivation or self improvement, these individuals can
overcome their handicap to some extent.
FACTORS INFLUENCING PERSONALITY
• 1)BIOLOGICAL FACTORS
– Heredity
– Physical Features
– Brain Stimulation
• 2) Cultural Factors
• 3) Family: and Social Factor
– i) Socialization Process
– ii) Identification Process
• Home Environment
– Family Members
– Social Groups
• 4) Situational Factors
 ATTITUDE
• Definition
A pre disposition or a tendency to respond positively or
negatively towards a certain
idea, object, person, or situation.
Attitude influences an individual's choice of action, and responses to
challenges, incentives, and rewards (together called stimuli).
• According to Bern, "Attitudes are likes and dislikes".
• According to Engel, "Attitudes are an overall evaluation that allows
one to respond in a consistently favorable or unfavorable manner
with respect to a given object or alternative".
• According to Allport, "Attitude is learned predispositions to
respond to an object or class of object in a consistently favorable or
unfavorable way".
• A definition of attitude popularized by cognitively oriented social
psychologists is, "an enduring organization of motivational,
emotional, perceptual, and cognitive process with respect to some
aspect of the individual's world".
 Characteristics of Attitudes

• I) Attitudes have an Object

• 2)Attitudes have Direction
– i) Direction
– ii) Degree
– iii) Intensity
• 3)Attitudes have Structure
• 4)Attitudes are Learned
 COMPONENTS OF ATTITUDE

• Cognitive component
• Affective component
• Behavioural/conative component
 FORMATION OF ATTITUDES

• Direct experience
• Social learning
– Family
– Peer groups and society
– Models
• Learning attitudes from observation involves the following four
processes.
• Attention: attention must be focused on model
• Retention: What was observed from the model must be retained.
• Reproduction: Behaviour must be practiced again and again.
• Motivation: the learner must be motivated to learn from the model.
 FACTORS INFLUENCING ATTITUDE
FORMATION
• 1. Group factors
• a. Reference group
• b. Family
• c. Social factors
•
• 2. Personality factors
• a. Psychological factors
• 3. Organizational factors
•
• 4. Economic factors
•
• 5. Political factors
 VALUES

• Values that a person has are one of the major

forces shaping behavior.
• Values are convictions and a framework of
philosophy of an individual on the basis of
which he judges what is good or bad,
desirable or undesirable, ethical or unethical.
• Rokeach has defined values as “Global beliefs
that guide actions and judgments across a
variety of situations”.
 CHARACTERISTICS OF VALUE

• Part of culture
• Learned responses
• Inculcated
• Social phenomenon
• Grafting responses
• Adaptive process
 TYPES OF VALUES
• There are two basic types of values namely

• ( i) Terminal values
• (ii) Instrumental values
• Terminal values reflect what a person is
ultimately striving to achieve. ( E.g family
security, self-respect).
• Instrumental values reflect the way to achieving
goals. ( E.g ) honesty, helpfulness, forgiving
nature.
 ALLPORT’s CLASSIFICATION
• Allport and his associates have categorized values into six
major types as follows:
• a. Theoritical: This shows high importance on the discovery
of truth through reasoning and systematic thinking.
• Economic: Emphasis on usefulness and practicability,
including the accumulation of wealth.
• Aesthetic: places the top most importance on beauty, form
and artistic harmony.
• Social: Accords the highest value in people and human
relationship.
• Political: Assigns importance to the acquisition of power and
influence.
• Religious: Have concernwith the unity of experience and
understanding of the cosmos as a whole.
 GRAVE’S CLASSIFICATION
• Graves has classified various personal values into five
categories. These are:
• Existentialism: Orientation of behaviour congruent with
existing realities.
• Conformistic: Orientation towards achievement of material
beliefs through control over physical resources.
• Sociocentric: Orientation with getting people.
• Tribalastic: Orientation towards safety by submitting to
power.
• Egocentric: Orientation to survival and power.
•
 ENGLAND’S CLASSIFICATION
• England has classified personal values into two
categories:
•
• Pragmatic: A pragmatic is one who takes a pragmatic
view of the situation which is stereotyped; he opts for
concepts and actions which appear to him as
important and successful irrespective of good or bad.
•
• Moralist: A moralist is one who is guided by the ethical
considerations of right or wrong, honest or dishonest.
 FACTORS IN VALUE FORMATION

• Value forming institutions

• Organizational values
• Peers and Colleagues
• Work and career
• Professional codes