ORGANIZATION BEHAVIOUR

Introduction to Organization
Behaviour
Meaning of Organization

An organization is a formal social group that is purposely created and

maintained to accomplish some specific objectives. It has a common and
distinct goal, and have a structure. Thus, it is defined as a social unit of two or
more individuals who are interacting with each other within a purposely
structured set-up in an interdependent way to achieve common objectives.
Behaviour
Behaviour includes anything a person or animal does that can be
observed in some way. Unlike minds or thoughts or feelings,
behaviour can be observed, recorded and studied. It is the way in
which one acts or conduct oneself.
 Organization Behaviour

Organization behaviour is directly concerned with the understanding, prediction,

and management of human behavior both individually or in a group that occur
within an organization.
Organization Behaviour
 According to McShane and Glinow: Organization
behaviour is the study of what people think, feel and
do in and around organizations.
 It studies several factors that effects on how human,
think, feel, sense, act and react to the work, and as
well as how organization respond to their
environment.
 OB is concerned with
 how human being act in organization
 how their act affect organization performance
 how organization can encourage people to behave in ways
that will improve the performance.
•How people behave in an organizational under a given situation is the
concern of organizational behavior. People join in an organization to
achieve certain objectives. The efforts of the people are co-
ordinate by the structure of authority, responsibility and relationships.
People use some technology to produce goods and services to achieve
their goals. We can call people, structure and technology as the
internal organizational elements.
•These elements interact with the external environment and are
influenced by it. The study of organizational behavior, thus involves
four key elements; people, structure, technology and environment in
which the organization operates
1. People
 People constitute the internal social system of
the organization. They consist of individuals and
groups. People are living, thinking and feeling
beings who work in organization to achieve their
objectives.
 People are very dynamic in nature, therefore,
human organizations change every day. People
may form, change and disband the organizations.
 Different attitudes, feelings, emotions, values,
customs and behaviors of the people are studied in
the organizational behavior.
2. Structure
 It defines the formal relationships of people in organization.
Structure defines the roles and relationship of the people in an
organization. Organizational people have to be related in some
structural way so that their work can be effectively
coordinated. In other words, different people in an
organization are given different roles and they have certain
relationship with others. Proper structure focuses to division
of labor so that people can perform their duties or works to
accomplish the organizational goals.
 A well structure is developed focusing the works designed to
different people like managers, accountants, clerks, workers,
peons etc in the organization. All people are related to each
other to accomplish the organizational goals in a coordinated
manner. Thus, structure relates to power and duties. Structure
must be effective, efficient, appropriate and should also ensure
that it suits organizational people or participants.
 3. Technology
 Technology provides the resources with which people
work and affects the task that they perform. People cannot
accomplish anything without technology. The technology
used has a significant influence on working relationships.
The nature of technology depends on the nature of
organization and influences work and working condition.
The great benefit of technology is that it allows people to
do more and better work but it also restricts people in
various ways. Technology brings effectiveness in the
works classified to different people in an organization.
The stated tasks can be better performed by the related
people in the easy way with less time consuming.
 4. Environment

 All organizations operate within an external

environment. A single organization does not exist
alone. It is a part of a larger system that contains many
other elements, such as government, family and other
organizations. All of these elements mutually
influence each other in a complex system that creates
a context for a group of people. It influences the
attitude of people, affects working conditions and
provides competition for resources and power. The
environment is considered very important in the study
of human behavior and organizational behavior.
Significance of OB
OB is the study of human attitudes, behaviour and
performance. It is the study of what people do in
organization and how the behaviour affects the
performance of the organization. The importance of
OB are mentioned below:
 Understanding employee in a better way.
 Motivate Employee
 Improve Industrial and Labour Relations
 Prediction and Control of Human Behaviour
 Effective Utilization of Human Resources.
 Planning and utilization of other resources.
Emerging Trends in Organizational Behavior
 Business environment are dynamic which changes
frequently. The dynamics of the environment arises
from globalization, the changing work force diversity,
increasing concern for quality and productivity, rapid
technological change etc.

 Competition has been intense so management are

expected to continually update their understanding of
organizational behavior. The key emerging trends in
organizational behavior are:
Emerging Trends in Organizational Behavior

1. System Approach
Organizations are viewed as complex open system interacting
with various elements to achieve a desired goal. Organizational
behavior is viewed from system perspective. The behavioral
relationship are interpreted in terms of whole person, whole
group and as a whole organization. The system aspect of
organizational behavior provides synergistic effect.
2. Contingency Variable
It refers to application of different behavioral practices for
different situation. Each situation should be carefully analyzed
and diagnosed prior to action. The universal principle of
organizational behavior are being replaced by the contingency
variables, there is no more “one best way” to solve the behavioral
aspect of an organization.
Emerging Trends in Organizational Behavior

3. Human Orientation
Organizational behavior has supported and practiced human orientation. It
simply refers to putting people first as they are viewed as most important
resources in an organization. It is concerned with developing of individual
to their full potential, which increase the competency, creativity and skills
needed to perform the job. The employee growth, initiation and
performance are actively supported. The positive attitude towards
employees are encouraged.

4. Distribution of power
The traditional organization system focused on power centralization at the
top level. However the new trends are concerned with employee
empowerment by providing autonomy at work and flexible work
schedules. The decentralization and distribution of power has provided
opportunities for employees to manage their work and enhance
organizational effectiveness.
Emerging Trends in Organizational Behavior

5. Self-Discipline
Discipline implies obligation to set rules, regulation and procedures. It is
concerned with regulating the employee behavior. The past practices of
organizational behavior was concerned with enforcement of discipline. However
the emerging trend is self-discipline maintained by individual at work as they are
willing adhering to set rules and acceptable behavioral standards. The self-
direction and control is exercised by employees.

6. Intrinsic Motivation
Motivation is concerned with stimulating the energies of employees to achieve
the desired result. It is concerned with individual’s intensity, direction and
persistence of efforts towards attaining goals. Traditionally organizational
behavior focused on extrinsic motivation which was induced in the form of
financial incentives however, at present the intrinsic motivation is encouraged
which is self-generated through sense of job satisfaction. The encouragement for
teamwork, power delegation and focus on high order need an employee has
empowered the employees which has generated intrinsic motivation.
 OB System
 Organizational Behavior (OB) is the study and application of
knowledge about how people, individuals, and groups act in
organizations. It does this by taking a system approach. That is, it
interprets people-organization relationships in terms of the whole
person, whole group, whole organization, and whole social system.
Its purpose is to build better relationships by achieving human
objectives, organizational objectives, and social objectives.
 Like any system, the basic organisation behaviour model is built
around inputs, processes and outcomes.
Feedback

Inputs Process
1. Individual 1. Individual
Outputs
Productivity/Profit/
inputs processing
Losses/Employee
2. Group inputs 2. Group Processing
Behavior/Low
3. Organizational 3. Organizational
Turnover/Satisfacti
inputs processing
on

Environment
Challenges and Issues of OB

 Organizational behavior is the manner in which

individuals and groups act and relate with each other
in the workplace. Various factors influence these acts
and relations, such as leadership, organizational
culture, and the personal objectives of individuals
within the organization.
 Organizational behavior influences the way managers
approach the task of managing personnel in the
workplace. Various challenges confront managers and
the entire organization within the context of the
company’s organizational behavior.
 1. Managerial Challenges:

 Diversity at Work: The workplace is an increasingly

diverse space. There are people of different races,
cultural backgrounds, sexual orientations and ages.
The challenge facing managers from an organizational
behavior point of view is how to manage this diversity
in a way that will positively impact the organization.
Managers have to move away from treating everyone
alike while at the same time valuing every individual
employee’s contribution to the growth of the
organization so as to maintain its valuable employees.
Proper HR training can help ensure that this occurs on
all levels of the organization.
1. Managerial Challenges
ii. Changing Demographics of workforce
(a) Dual Career Couples
(b) Growing numbers of youngsters
(c) Gender factor
 2. Organizational Challenges
Managers have to face a large number of challenges at the
organizational level also the major ones are as follows:
 Ethical Behavior: Corporate scandals involving
unethical behavior can be made public within a short
time. Organizations often have policies that facilitate
ethical behavior within the workplace. The challenge for
managers is to promote an ethical organizational behavior
and culture such that employees will not put their
individual interests ahead of organizational interests.
Personal interest is an aspect of organizational behavior
and managers face the task of encouraging group interest
over personal interest so as to preserve ethical values.
2. Organizational Challenges
Globalization Response: Through globalization, organizations that were
once local become global. Managers have to manage international personnel
with different cultural backgrounds, work ethics and values. As such,
managers have the challenge of understanding the organizational behavior
of the personnel in the company's subsidiary organizations. The global
manager uses this information to improve those subsidiaries' organizational
behavior to tally with the overall organizational culture of the company.
Resistance by the subsidiaries to this improvement is an eminent possibility.
Technology and Innovation: Information technology plays an integral role
in workplace communication. Additionally, workplace communication also
influences how people and groups behave in the organization. Although
technology brings with it efficiency in collating and disseminating
knowledge, it can also alienate individuals such as the elderly within the
organization. The challenge here is in finding ways in which technology
promotes organizational communication and inclusion rather than exclusion
and discrimination.
 2. Organizational Challenges

 Coping with Temporariness: Today managers and employees must learn to

live with temporariness. They have to learn to cope with spontaneity,
flexibility and unpredictability. The study of OB can help in providing
important insights into helping one in how to overcome resistance to change
and how best to create an organisational culture that thrives on change.
 Improving Quality and Productivity: Due to the advent of globalisation
privatisation and liberalisation, organisations are exposed to competition. In
such a scenario, managers have to think seriously about improving the quality
and productivity. To achieve this target, managers are implementing
programmes like Total Quality Management and Reengineering programmes.
Total quality Management (TQM) is a philosophy of management for
attainment of customer satisfaction through the continuous improvement of all
organisational processes. TQM has implication for OB because it requires
employees to rethink what they do and become more involved in work place
decisions. Reengineering means radically rethinking and redesigning those
processes by which we create value for customers and do work. It requires
managers to reconsider how work would be done and their organisation
structured if they were to start from scratch.
3. Workplace Issues and Challenges
 Employee Privacy: Employers, nowadays, have started to
intrude and encroach too much into the private lives of the
employees. Managers need to be very sensitive to this
issue since this trend creates resentments among
employees.
 Employee Rights: A concern related to employee privacy
is employee rights. In this context, controversies involve
issues associated with job ownership and individual rights
while at work. Issues have also surfaced regarding uniform
dress codes, right to marry within the organization etc.
These issues tend to be controversial as more and more
organizations limit or ban certain activities.
 3. Work Place Issues and Challenges:

 Unionism: In the recent years, the general trend regarding union

membership has been steadily declining. As a result, organisations carry the
burden of providing the services to the employees which were previously
provided by the unions. Organisations need to take extra precautions to
ensure that workers are treated fairly; otherwise, union membership will
start increasing once again. Unionism has started increasing in other areas
ranging from professional to technical to white collar jobs.
 Changed Employee Expectation: Employee expectations are also
changing with change in work force demographics. Traditional motivators
like, job securities, attractive pay package, additional perquisites do not
attract, retain or allure today’s workforce. Nowadays, employees demand
empowerment and expect quality of status with the management.
Authoritative leadership is giving way to participative managements with
employee influence and involvement along-with mechanisms for upward
communications. Flexi-timings, opportunities to work from home, leading
by example are the more recent trends. Today’s average workers demand
better treatment, challenging jobs and career advancement.
4. Environmental Challenges

 Every Organization exists within an external

environment. The organization, thus, must adapt
itself through continuous interaction to the
environment. The environment is dynamic and is
continuously changing, thus, the adaption process of
organizations must also be dynamic and sensitive.
Member of the organization must be responsive to a
large number of environmental challenges. The
organization must understand its responsibility to the
environment and should be willing to interact with
the environment, only then it will be able to survive
in the long run.
4. Environmental Challenges

Personal Policies: Personal policies of the

organization should not be discriminatory towards
any particular caste, religion, sex, nationality.
There should be equal pay for equal work.
Air water and soil pollution: Development
should be sustained in long run without making
environment polluted
Research and Development: To keep pace with
the global challenges, the organization must
undertake technical and scientific research.
 4. Environmental Challenges

 International Policies: While doing a business on international

scale, international policies pose a major challenge. The
organisation has to keep in mind the legislations and specific
policies of various countries while dealing with them.
 National Economic Policies: Due to the rising inflationary
trends in the economy, there is always governmental pressure on
the organisations to reduce prices and increase the wages. To
balance between these two is a very challenging task
 Consumerism: Consumerism is a call for a revised marketing
concept. The original marketing concept has to be broadened to
include the societal marketing concept. Societal marketing
concept has emerged to say that long term consumer welfare is
also important.
THANK YOU