PRINCIPLES OF ORGANIZATIONAL

BEHAVIOUR

Module I

Introduction to Organizational Behaviour

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 Topics To Be Covered:

The Concept, Nature And Significance Of Organizational Behavior.

Factors Affecting Human Behavior.

Disciplines Contributing To Organizational Behavior.

Emerging Issues In Organizational Behavior.

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 INTRODUCTION TO OB

ORGANISATIONS INVOLVE
GROUPS OF PEOPLE WHO 3Ps
WORK TOGETHER
INTERDEPENDENTLY
TOWARDS SOME PURPOSE PROCESS PEOPLE
PURPOSE.

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 3Ps

• PURPOSE IS THE GUIDING STAR

• PROCESS ENSURES QUALITY

• PEOPLE DELIVER RESULTS

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 Organizational Behavior
Organizational behavior (OB) is the study of
factors that affect how individuals and groups
act in organizations and how organizations
manage their environments for the purpose of
applying this knowledge toward improving an
organisation’s effectiveness.

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 Definitions of OB
• “The study of what people think, feel, and do in and
around organizations.” McShane & VonGlinow

• “The systematic study of actions and attitudes that

people exhibit within organizations.” Robbins

• “The study of individuals and groups in

organizations.” Schermerhorn, Hunt & Osborn
•
“Organizational behavior is directly concerned with
the understanding, prediction, and control of human
behavior in organizations.” — Fred Luthans.
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It is the systematic study and application of knowledge about how
individuals and groups act within the organizations where they work.
OB draws from other disciplines to create a unique field.

Organizational Behavior is;

 A Separate Field of Study and not a Discipline Only.

 An Interdisciplinary Approach.
 Applied Science.
 Normative Science.
 A Humanistic and Optimistic Approach.
 A Total System Approach

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Significance Of Organizational Behavior

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 Behaviour
• Behaviour is what a person does. It is defined as the
observable and measurable activity of human-beings.
(OVERT BEHAVIOUR); like handling a machine.
• Another set of behaviour which is non-observable or
non-measurable is known as COVERT BEHAVIOUR;
like feelings, attitudes,perception formation,etc.

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HUMAN BEHAVIOUR

Overt behaviour

Covert
behaviour

TOTAL BEHAVIOUR
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 Foundations of OB

Individual Social
Differences Systems

Whole Person
Mutuality of
OB Interests
Caused Behaviour

Human Dignity Holistic Concept

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 Discussion

OB provides a road map to our lives in

organizations

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 UNDERSTAND
ORG. EVENTS

ORG
ANIS
ATIO
NAL
BEHA
INFLUENCE PREDICT
ORG.EVENTS VIOU ORG.EVENTS
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 ROLE OF OB IN WORK SYSTEMS

• KNOWLEDGE X SKILL= ABILITY.

• ATTITUDE X SITUATION = MOTIVATION.
• ABILITY X MOTIVATION = POTENTIAL HUMAN
PERFORMANCE.
• POTENTIAL PERFORMANCE X RESOURCES
X OPPORTUNITY = ORGANISATIONAL
RESULTS.

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 Discussion
Leader must be able to describe, understand,
predict and control individual behaviour in the
organization.

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 PEOPLE
• Individuals
• Groups

ENVIRONMENT
• Government STRUCTURE
• Competition • Jobs OB
• Societal pressures • Relationships

TECHNOLOGY
• Machinery
•Computer h/w and s/w

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 Fundamental Concepts of Organizational Behavior:

OB is based on a few concepts which revolve around the nature of

people and organizations, which includes:

 Individual Differences.
 Perception.
 A Whole Person.
 Motivated Behavior.
 The desire for Involvement.
 The value of the Person.
 Human Dignity.
 Organizations are Social System.
 Mutuality of Interest.
 Holistic Concept. 18
Organizational behavior studies the mechanisms governing these
interactions, seeking to identify and foster behaviors conducive to the
survival and effectiveness of the organization.

 Job Satisfaction.
 Finding the Right People.
 Organizational Culture.
 Leadership and Conflict Resolution.
 Understanding Employees Better.
 Understand how to Develop Good Leaders.
 Develop a Good Team.
 Higher Productivity.

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 Significance of Organizational Behavior
 It builds better relationship by achieving people’s, organizational, and
social objectives.
 It covers a wide array of human resource like behavior, training and
development, change management, leadership, teams etc.
 It brings coordination which is the essence of management.
 It improves goodwill of the organization.
 It helps to achieve objectives quickly.
 It makes optimum utilization of resources.
 It facilitates motivation.
 It leads to higher efficiency.
 It improves relations in the organization.
 It is multidisciplinary, in the sense that applies different techniques,
methods, and theories to evaluate the performances.
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 EXHIBITING
JOINING THE
ORG.
ORG.
CITIZENSHIP

TYPES OF
PERFORMING BEH. IN REMAINING
REQIRED WITH
TASKS
ORG. THE ORG.

MAINTAINING
WORK
ATTENDANCE

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 PSYCHOLOGICAL FACTORS
• These are an individual’s mental
characteristics and attributes that can affect
behaviour. They form coherent part of an
individual’s behaviour.
• Personality, perception, attitudes, values and
learning are the most prominent factors under
this env.

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The Layers of OB
The Organization

Change
Organizational culture
Decision making
The Group Leadership

Power and politics

Negotiation
Conflict
Communication
Groups and teams
The Individual
Motivating self and others
Emotions
Values and attitudes
Perception
Personality
Learning

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Levels
Levels of
of OB
OB Analysis
Analysis
Organizational Level

Group Level

Individual
Level

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 LEVELS OF
HUMAN
BEHAVIOUR

How an
INDIVIDUAL ind.
LEVEL Behaves in
a particular
way.
Paired INTERPERSONAL
LEVEL
Relationships
(TA,RA)
Group
GROUP LEVEL Norms,
cohesion,
Goals,etc.

INTERGROUP
Cooperation or competition LEVEL
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 FACTORS AFFECTING INDIVIDUAL BEHAVIOUR
PERSONAL FACTORS PSYCHOLOGICAL FACTORS

•Age •Abilities • Personality

•Gender •Marital status • Perception

•No. of • Values
•Education dependants • Attitude •
Learning

ORGANISATIONAL SYSTEMS AND RESOURCES

ENVIRONMENTAL FACTORS

•Physical facilities •Economic env.

•Org. structure & design •Social norms &
•Leadership cultural values
•Reward System •Political climate
•Work-related behaviour 26
PERSONAL FACTORS
The way an individual addresses a situation single-handedly
or say in a group is influenced by many factors. The key
factors influencing an individual’s behavior are −

 Abilities
 Gender
 Race and culture
 Attribution
 Perception
 Attitude
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 ENVIRONMENTAL FACTORS

• Economic env. is a synthesis of several factors,

prominent among them being the employment level,
wage rates, economic outlook, and technological
change.
• Fewer job opportunities increase the emphasis on
job security and can change the basic motivation
pattern of the individual. Where job openings are
several, tendency of job-hopping will increase and
vice-versa.

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ENVIRONMENTAL FACTORS
• Wages satisfy individual needs; they provide food,
shelter, are measures of achievement, and can serve
as a status symbol. It is a complex variable and its
effect on behaviour varies tremendously.
• Economic outlook influences individual’s
expectations, especially of those employed in
industries severely affected by economic cycles.
• Technological advances affect the level of skills
required for a particular job.

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 ENVIRONMENTAL FACTORS
• Cultural env. is made up of institutions and
other forces that affect society’s basic values,
perceptions, work ethics, preferences and
behaviours.
• Achievement need influences employees’
behaviour in terms of setting goals, taking
risks, initiatives, etc.
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 ENVIRONMENTAL FACTORS
• The political climate ; i.e. the stability of the
government can affect employment opportunities. A
politically unstable env. has difficulty in attracting
industries for investment purposes and therefore
experiences problems in maintaining a steady
employment level.
• The political ideology of a country affects individual
behaviour primarily through the relative freedom
available to its citizens. It can affect career choices,
job design,etc.
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ORGANISATIONAL SYSTEMS & RESOURCES

• Physical facilities such as lighting, ventilation, air-

conditioning, décor, space provided to each
employee, equipment and the like, have an influence
on employee performance.
• Organisation structure sets the reporting
relationships and lines of communication; the
behaviour of an individual is influenced by where he
fits into the overall structure and design of the org.
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ORGANISATIONAL SYSTEMS & RESOURCES

• The type of leadership under which a person works

shapes his/her behaviour. The leader is the potential
source of influence and acts as a catalyst in the path
of life.
• The behaviour and performance of an individual is
influenced by the reward system his/her org. has
established.

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Disciplines Contributing To Organizational Behavior.

Micro:
The Individual Psychology

Social Psychology

Macro:
Sociology
Groups &
Organizations
Anthropology
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Contributing Disciplines
to the OB Field

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 Sociology

• Sociologists study the social system in which

individuals fill their roles; that is, sociology
studies people in relation to their fellow
human beings.
– Their greatest contribution to OB is through their
study of group behavior in organizations,
particularly formal and complex organizations

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Contributing Disciplines to the OB Field

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Contributing Disciplines to the OB Field

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 Anthropology
• Anthropology is the study of societies to
learn about human beings and their
activities.
• Anthropologists work on cultures and
environments; for instance, they have helped
us understand differences in fundamental
values, attitudes, and behavior among
people in different countries and within
different organizations.

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Contributing Disciplines to the OB Field

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Contributing Disciplines to the OB Field

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Emerging Issues In Organizational Behavior :

 Workforce Diversity

 Changed Employee Expectation

 Globalization

 Improving Productivity and Quality

 Changing Demographics Of Workforce

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