ORGANISATIONAL

BEHAVIOUR
Definition
 It is the field of study that investigates the
impact of individuals, groups and structure on
behaviour in the organisation for the purpose
of applying such knowledge towards
improving organizational effectiveness.

 It is a systematic study of the behaviour and

attitudes of both individuals and groups
within the organisations
 Focuses on understanding and explaining
individual and group behaviours in
organisations
 It is concerned with what people do in an

organisation and how that behaviour affects

performance
 The understanding, prediction and management

of human behaviour in the organisations

 OB focuses on improving productivity, reducing
absenteeism and turnover, and increasing employee
job satisfaction and organizational commitment.
 OB uses systematic study to improve predictions of
behaviour.
 Complementing Intuition with Systematic Study
1-5

 Intuition: the “gut feeling” explanation of

behavior.
 Systematic study & EBM (Evidence based
Management) improves ability to accurately
predict behavior.
 Assumes behavior is not random.
 Fundamental consistencies underlie behavior.
 These can be identified and modified to reflect
individual differences.
Contributing Disciplines to the OB Field

 Psychology
 Sociology
 Social Psychology
 Anthropology
 Political Science
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
 Behavioural Contribution Unit of Output
science analysis
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Psychology Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Individual

Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Sociology

Formal organization theory Study of

Organizational technology Group Organizational
Organizational change Behaviour
Organizational culture

Behavioural change
Attitude change
Social psychology Communication
Group processes
Group decision making
Organization
Comparative values system
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational culture
Organizational environment

Conflict
Political science Intraorganizational politics
Power
Few Absolutes in OB
 Impossible to make simple and accurate
generalizations
 Human beings are complex and diverse
 OB concepts must reflect situational conditions:
contingency variables

Input Conditio Behavior

“A” n “C” “B”
Eg. Job Satisfaction’s Impact on Behavior

Performance

Turnover
Job
Satisfaction

Absence

OCB
Contingency variable : Situational Antecedents of
Job Satisfaction

 Providing adequate training

 Reward/Recognizing employees
 Supporting innovation
 Employee involvement in decision making
 Inspiring & communicating a shared vision
 Trust in management
 Supervisor-employee “fit”
Challenges facing organisations today
that have made it necessary for
managers to Study OB
Challenges and Opportunities for OB
1. Responding to Economic Pressures (GST)
2. Responding to Globalization (FDI)

3. Managing Workforce Diversity (Inclusivity)

4. Improving Customer Service (24X7)

5. Improving People Skills & Social media

(Interpersonal)
6. Stimulating Innovation and Change (Telecom)

7. Coping with “Temporariness” (tenure in company)

8. Working in Networked Organizations (IT)

9. Helping Employees Balance Work-Life Conflicts

10. Creating a Positive Work Environment

11. Improving Ethical Behavior

Responding to Globalization
 Increased foreign assignments
 Differing needs and aspirations in
workforce
 Working with people from
different cultures
 Domestic motivational techniques and
managerial styles may not work
 Overseeing movement of jobs to
countries with low-cost labor
Responding to economic pressure

 In tough economic times, effective

management is an asset.
 In good times, understanding how to reward,
satisfy, and retain employees is at a premium.
 In bad times, issues like stress, decision
making, and coping come to the forefront.
 Thinking Positive
 Creating a positive work environment can be a
competitive advantage
 Positive Organizational Scholarship (Positive OB):
 Examines how organizations develop human strengths,
foster vitality and resilience, and unlock potential.
 Focus is on employee strengths, not their weaknesses.
OB Model
 Models Of Organisational
Behaviour (Contd.)

 The different models of Organizational

Behaviour are as follows:
 Autocratic Model,
 Custodial Model,
 Supportive Model,
 Collegial Model and
 System Model.
 Autocratic Model
 Autocratic model depends on power of the boss.
 Those who are in the command must have power to demand “you
do this or else”, meaning those who do not follow order, will be
penalized.
 In an autocratic environment, the managerial orientation is official
authority.
 Under autocratic model, the employee orientation is obedience to
the boss, not respect for him.
 The psychological result for employees is, dependence on their boss
whose power to hire, fire and perspire them is almost absolute.
 The employees needs must satisfy subsistence needs of themselves
and their families.
 Most of the employees give minimum performance.
 Custodial Model
 The custodial model depends on economic resources.
 The resulting managerial orientation is, towards money to pay
wages and benefits.
 Since employees’ physical needs are already reasonably met,
the employer looks to security needs as a motivating force.
 If an organization does not have the wealth to provide pensions
and pay other benefits, it cannot follow a custodial approach.
 The custodial approach leads to employee dependence on the
organisation.
 The employees are satisfied and happy but they are not
strongly motivated, so they give only passive cooperation.
 Supportive Model
 The supportive model has its origin in the “principles of supportive relationship”.
 The supportive model depends on leadership instead of authority or economic

rewards.
 The management assumes that workers are not by nature passive and resist to

organizational needs, but they are made so by an inadequately supportive

climate at work.
 Through leadership, management provides a climate to help employees to grow

and accomplish.
 Management’s orientation, therefore, is to support the employees job

performance.
 The workers feel a sense of participation and takes involvement in the

organisation.
 The workers are more concerned about higher level needs, like affiliation and

esteem.
 Employee says “we” instead of “they” when referring to their organization.
 Collegial Model

 The term “collegial” refers to a body of persons having a common

purpose.
 The collegial model depends on management’s building a feeling of
partnership with employees.
 The result is that employees feel needed and useful.
 They feel that managers are contributing also, so it is easy to accept and
respect their roles in the organization.
 Managers are seen as joint contributors rather than as bosses.
 The managerial orientation under collegial model is team work and
management is the coach that builds a better team.
 The employees are self disciplined and concerned with self-actualisation
needs which will lead to moderate enthusiasm in performance.
 The employee response to this situation is responsibility.
 System Model
 Under the system model, managers try to convey to each worker, “you are
an important part of our whole system.
 We sincerely care about each of you.
 We want to join together to achieve a better product or service for local
community and society at large.
 We will make every effort to make products that are environmentally
friendly.”
 This helps self motivation of employees.
 The role of a manager becomes one of facilitating employee
accomplishments through a variety of actions.
 These actions are:
1. Support employee commitment for short-and long-term goals.
2. Coach individuals & groups in appropriate skills & behaviors.
3. Model and foster self-esteem.
4. Show genuine concern and empathy for people.
5. Offer timely and acceptable feedback.
 Comparison Amongst Models of OB
Model Autocratic Custodial Supportive Collegial System

Basis Of Model Power Economic Leadership Partnership Trust Community

Resources Understanding

Managerial Authority Money Support Teamwork Caring

Orientation Compassion
Employee Obedience Security & Job Responsible Psychological
Orientation Benefits Performance Behavior Ownership

Employee Dependence Dependence Participation Self-discipline Self

Psychological On Boss On Motivation
Result Organisation

Employee Subsistence Security Status & Self- Wide

Needs Met Recognition actualization Range
Example Defense Garments Software Social Some Corporate
Team Factory Firm Organization Firm
Performance Minimum Passive Awakened Moderate Passion
Result Cooperation Drives Enthusiasm Commitment
Organizational
goals
 Illustration :

 What model of OB would be most appropriate in

the following situations ?
1. Long distance telephone operators in a very large
office
2. Accountants with a small certified professional
accounting firm
3. Food servers of in a local restaurant of a
prominent fast food chain