ORGANISATIONAL

BEHAVIOUR
 ORGANISATIONAL
BEHAVIOUR
 Introduction
 Organisations – for education,
employment, health, travel, recreation
etc.
 Organisations are not physical
structures but made up of people who
individually and collectively form an
organisation to produce necessary
goods and services.
“ The organisation is above all social.
It is people.” Peter Drucker

“ People are the key” – Sam Walton,

the founder of Wal-Mart and the
richest person in the world when he
died .
 Why organisations exist?

 Organisations provide us necessary goods

and services and so are very useful in
society.
 Further on to increase specialisation and
division of labour.
 To make use of large scale technology.
 To manage external environment.
 To economise on transaction costs.
 To exert power and control for efficiency.
 The organisational icebergFigure
2.3

What sinks a ship isn’t

always what sailors can
see, but what they can’t
see.

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational

Behavior, Eighth edition, South-Western Publishing © (1998), p.6. Reprinted with the
permission of South-Western, a division of Thomson Learning: www.thomsonrights.com.
Fax 800 730 2215.
 WHY OB HAS COME INTO
PICTURE
 Today, running organisations with
satisfied workforce is quite difficult
because they are influenced by
human behaviour.
 And this human behaviour is an
important element in the functioning
of an organisation.
 Behaviour is anything that one does.
 This behaviour comes from / is made
up of perceptions, values, motives,
attitudes, understanding, beliefs,
habits, culture, learning process etc.

 The characteristics of human

behaviour are : – it is caused – goal
oriented - motivated – can be
disrupted by certain problems
(frustration, conflicts, anxiety etc.) –
observable – measurable – cause and
effect relationship
 - complex, may be orderly/arbitrary,
systematic/random, - differs due to
physiological, environmental, social
and psychological variables.

This knowledge of human behaviour

needs to be studied and understood
by people managing organisations to
run them effectively.
That’s how and why OB has come into
the picture.
 Organisational Behaviour
 Organisational Behaviour (OB)
 The study of actions that affect
performance in the workplace.
 The goal of OB is to explain and predict
actions and how they will affect
performance.
 OB focuses on three levels: individual,
group, and organisational.
 Win-win Situation
 A situation in which both parties get
what they want.
 Elements of OB

 People
 Structure
 Environment –internal & external
 Technology

 Appannaiah & Reddy

ORGANISATIONAL BEHAVIOUR
“Organisational Behaviour is concerned
with the study of what people do in an
organisation and how that behaviour
affects the performance of the
organisation.”
(Robbins: 1998,9)
 ORGANISATIONAL BEHAVIOUR
The study of Organisational Behaviour
involves:
 consideration of the interaction among the
formal structure (organisational context in
which the process of management takes
place)
 the tasks to be undertaken
 the technology employed and the methods
of carrying out work
 the behaviour of people
 the process of management
 the external environment
ORGANISATIONAL BEHAVIOUR
Interrelated dimensions influencing
behaviour:
 The Individual - working environment
should satisfy individual needs as well as
attainment of organisational goals.
 The Group - formal and informal.
Understanding of groups complements a
knowledge of individual behaviour.
 The Organisation - impact of organisation
structure and design, and patterns of
management, on behaviour.
 The Environment - technological and
scientific development, economic activity,
governmental actions.
 DEFINITIONS
 KEITH DAVIS & NEWSTROM
 “OB is the study of application of
knowledge of how people act or
behave within an organisation”.

 FRED LUTHANS
 “OB is directly concerned with the
understanding, prediction and control
of human behaviour in an
organisation.
 In short, OB is………

 the study of human behaviour,

 the study of human behaviour in
organisations,
 the study of human behaviour at
individual, group and organisational
levels and
 Application of that knowledge in
improving organisational effectiveness.
 NATURE OF OB
 A field of study and not a discipline

 Interdisciplinary approach

 An applied science and not a pure science

 Normative and value centred

 Humanistic and optimistic

 Oriented towards organisational objectives

 A total systems approach

 FOUNDATIONS OF OB
 The subject of OB is based on a few
fundamental concepts which revolve
around the nature of people and
organisation.

 OB, as a distinct study came into

existence because of some key
variables mentioned below:-
 a) that there are individual differences
 b) that a whole person needs to be studied
 c) that behaviour of an individual is
caused
 d) that every individual has dignity of his
own
 e) that organizations are social systems
 f) that there exists a mutuality of interests
among organisational members
 g) that people have their own perceptions,
attitudes, values etc.
 h) that there exists a holistic approach
towards OB
 Scope of OB
 OB uses an applied behavioural
science approach and is based on
views and contribution from various
behavioural disciplines such as
Psychology, Sociology, Social
Psychology, anthropology, Political
Science and other discipline and
other disciplines such as economics,
Ethics, Mathematics and even
Statistics.
 Sociology
 Sociology is concerned with the
study of people as part of the social
system. It specifically studies social
groups, social behaviour, society,
group dynamics, team
communication, organisational
culture/ climate, etc.
 Psychology
 Psychology is concerned with the study
and understanding of human personality
and behaviour, the traits, characteristics,
perceptions, personality, attitudes, values,
beliefs, and motives of individuals.

 As a science, psychology tries to measure,

explain and at times even modify the
behaviour of human beings.
 Social Psychology

 This is a combination of both

Psychology and Sociology. Social
Psychologists are interested in areas
related to measuring understanding,
and change of attitudes, building
healthy communication network and
group decision making.
 Political Science
 This discipline is mainly concerned with
the building and structuring of powerful
groups.

 Political scientists study the behaviours of

individuals and groups within a political
environment.

 It helps to understand conflict resolution,

group coalition, allocation of power, and
people manipulate power in their self
interest.
 Poly-ticks
 Anthropology

 It is the study of human race and its

culture.
 It is related to the study of larger
groups (societies), nations and
cultures.
 It helps us to study global beliefs,
customs, ideas and values and the
wider process of socialisation.
 Economics – optimum utilisation of
physical and human resources.

 Ethics - establishments of standards of

honesty, integrity, value, esteem, respect
etc.

 Mathematics/statistics – involves the use

of acts and figures and arriving at logical
and demonstrable conclusions from bodies
of knowledge and research.

 Engineering - helps in work measurement,

productivity measurement, work flow
analysis, product designs etc.
 IMPORTANCE OF OB
 OB provides a road map to our
organizational lives.

 The field of OB uses scientific research to

help us understand and predict
organizational life.

 It helps us influence organizational events

viz. communicate effectively, manage
conflicts, make better decisions, form
effective work teams etc.
 It helps an individual understand himself
/herself and others better.

 It helps managers to get things done

through delegation – understand
motivation and what to be done to
motivate subordinates.

 It is useful for maintaining cordial

industrial relations.

 It is useful also in the field of marketing.

 OBJECTIVES OF OB

 To maximise productivity, citizenship

and satisfaction.

 To minimise absenteeism and

turnover.
 It is useful for pursuing a career in
management to learn how to predict
behaviour and apply it in meaningful
way to make organisations more
effective.

 It leads to higher productivity,

profitability, growth and stability of
business.
 APPROACHES TO OB
 1. HR Approach

5.Interactionalism 2.Contingency
Approach Approach

OB

4.Productivity Approach 3. Systems Approach

k. Ashwathappa
HUMAN RESOURCE APPROACH
 People are central resource to any
organisation.

 They should be developed to higher

levels of competency, creativity and
fulfillment.

 Managers role is to provide active

support to their growth and
performance.
 CONTINGENCY APPROACH
 By this approach, we assume that there is
no ‘one best way’ available in any
organisation.
 Events/ situations/ outcomes are said to
be contingents influenced by other
variables.
 It suggests that several other variables
affect the relationships and appropriate
managerial action needs to be taken based
on elements of that situation.
 SYSTEMS APPROACH
 This approach views that organisations as
united and purposeful system composed of
interrelated parts.
 It suggests managers to look to
organisations in totality, as a whole person,
whole group and a social system.
 It is an input – transformation –output
system whereby managers need to work
with people and allocate resources
(materials/human/financial/informational)
to carry out tasks within an environment of
change.
 PRODUCTIVITY APPROACH
 This approach focuses on optimising
resource utilization and raising efficiency
levels in work areas.
 Productivity is the ratio of output to input
in economic terms but human and social
inputs/ouputs are also important. Eg. OB
can improve job satisfaction.
 It suggests that human/ social/ economic
issues play an important role in
organisational growth.-
 INTERACTIONALISM
 This approach attempts to explain how
people select, interpret and change various
situations.

 Internationalism suggests that individuals

and situations interact continuously to
determine individuals' behavior.

 This shows that individual behaviour results

from continuous and multi-directional
interaction between characteristics of a
person and the situation.
 OB MODEL
PERSONALITY,
INDIVIDUAL
PERCEPTION, LEARNING,
BEHAVIOUR
ATTITUDE, ATTRIBUTES &
MOTIVATION

GROUP DYNAMICS, TEAMS,

LEADERSHIP, POWER & GROUP ORGANISATIONAL
POLITICS, BEHAVIOUR EFFECTIVENESS
COMMUNICATION &
CONFLICTS

ORG. CULTURE, H R ORGANISATIONAL

POLICIES, STRESS, ORG. BEHAVIOUR
CHANGE & O D
 LEVELS OF OB

 OB focuses in three levels of

behaviour in an organisation viz..

 1. Individual level variables

2. Group level variables
 3. Organisational level variables
INDIVIDUAL LEVEL VARIABLES
 1) Biological characteristics – age, gender,
marital status, tenure etc.

 2) Personality and emotions – (sum total

of behaviour and intense feelings).

 3) Values and attitudes –( basic

convictions and evaluative statements/
judgements concerning people, objects or
events)
 4) Ability – capacity to perform in various
tasks.

 5) Perception – is what one thinks or

interprets to an environment.

 6) Motivation – the process that accounts

for an individual’s intensity, direction and
persistence of effort towards attaining goal.

 6) Learning – permanent change in

behavior as a result of experience.

 7) Individual decision making – A process

influenced by all other factors.
 Group level variables
 Group decision making
 Leadership and trust
 Communication
 Group structures
 Work teams
 Conflicts
 Power and politics
 ORGANISATIONAL LEVEL
VARIABLES
 HR policies and practices

 Organisational culture

 Organisational structure and designs

 Work design and technology

 CHALLENGES AND
OPPORTUNITIES FOR OB
 Responding to globalisation
 Managing workforce diversity
 Improving quality and productivity
 Improving people’s skills
 Empowering people
 Stimulating creativity, innovation
and change.
 Improving ethical behaviour.
The role of management as an integrating activity
 OB MODELS

 AUTOCRATIC MODEL

 CUSTODIAL MODEL

 SUPPORTIVE MODEL

 COLLEGIAL MODEL
 L.M. Prasad/appannaiah & Reddy
 AUTOCRATIC MODEL
 Basis of model  Power

 Managerial  Authority
orientation
 Employee  Obedience
orientation
 Employee  Dependence on boss
psychological result
 Employee needs met
 Subsistence

 Performance result
 Minimum
 CUSTODIAL MODEL
 Basis of model  Economic resources

 Managerial  Money
orientation
 Employee  Security and
orientation benefits
 Employee  Dependence on
psychological result organisation
 Employee needs  Security
met
 Performance result  Passive co-operation
 SUPPORTIVE MODEL
 Basis of model  Status &
Recognition
 Managerial orientation  Leadership

 Employee orientation  Support

 Employee  Job performance

psychological result
 Employee needs met  Participation

 Performance result  Awakened drives

 COLLEGIAL MODEL
 Basis of model  Partnership

 Managerial  Teamwork

orientation
 Employee orientation  Responsible
behaviour
 Employee  Self-discipline

psychological result

 Employee needs met  Self-actualisation

 Performance result  Moderate enthusiasm

 Emerging trends in organisations
 Peter F. Drucker said that ‘organisational
structures are becoming increasingly short
lived and unstable’.
 The work culture is changing in every
organisation.
 Job and Work patterns are changing.
 There is a high mobility of labour.
 The concepts of job security and steady
income are losing.
 Outsourcing of employees is increasing.
 Hierarchy levels are reduced.
 Emerging trends in organisations
 There is impact of globalisation –
organisations are restructuring.
 Organisations look for reducing costs and
enhancing productivity.
 There is emphasis on changing technology
and developing entrepreneurship.
 Organisations are becoming learning
organisations.
 Emergence of virtual organisations.
 Organisations of tomorrow look for –
INTELLIGENCE, INFORMATION AND IDEAS.
MANAGERIAL ROLES & SKILLS
 INTERPERSONAL ROLE – Figurehead,
Leadership and Liaison.

 INFORMATIONAL ROLE – Monitor,

Disseminator and spokesperson.

 DECISIONAL ROLE – Entrepreneur,

Disturbance handler, Resource
allocator, Negotiator.
 SKILLS OF A MANAGER
 A manager requires three managerial skills as
under:
 Technical Skill – ability to apply knowledge,
methods, techniques and equipments necessary to
perform a skilled job or task –acquired through
training , education and experience on the job.
 Human Skill – ability to judge and work with,
understand and motivate others – calls for
interpersonal relations at various levels to
communicate, motivate and delegate
responsibility.
 Conceptual skills – mental ability and attitude to
analyse and handle complex situations – calls for
goal setting and decision making that affect
organisational functioning.
  Skills needed

EXECUTIVE
T
E
 ex
C
O
C N
H C MANAGERIAL
N E
I P
C T SUPERVISORY
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