INTRODUCTION TO

THE
ORGANIZATIONAL
BEHAVIOR
Organizational
Behavior
 What is OB?
Organizational Behavior (OB) is the study of
human behavior in organizational settings, the
interface between human behavior and the
organization, and the organization itself.
Why is Organizational Behavior Important?

To predict how employees might

react under different circumstances
and adjust accordingly.
4 Main Elements of
Organizational Behavior

1. People
2. Structure
3. Technology
4. External
Environment
People
● People consist of individual and groups
● People are dynamic in nature as they interact with each
other and also influence each other.
● The existence of an organization is impossible without
people.
Structure
● In this world everything has a structure for example
human body, tree and house.
● In organization structures defines the roles an
relationships of people.
● It leads to a division of work.
● The structure clarifies the authority responsibility
relationships.
Technology
● In today’s world without technology work would be
either difficult or even impossible.
● It provides economic and physical resources to make
people’s job easy.
● Technology may also put restrictions on the freedom of
people
External Environment
● An organization operates in a larger social system and
is influence by the external environment which
includes socio-cultural, economic and technological.
● These forces influence peoples attitudes, motives and
working condition in an organization in many ways.
The concept of Organizational Behavior is based on two key elements

NATURE OF PEOPLE
NATURE OF THE ORGANIZATION
Nature of People
● is the basic qualities of a person or the
character that personifies an individual they
can be similar or unique
Nature of People

Individual Differences
● It is managerial approach towards each employee
individually, that is one-on-one approach and not
the statistical approach, that is, avoidance of
single rule.
Nature of People

Perception
● It is a unique ability to observe, listen and
conclude something. It is believing in our senses.
In short the way we interpret things and have our
point of view is our perception.
Nature of People

A whole person
● As we all know that a person’s skill or brain cannot be
employed we have to employ a whole person.
● Our personal life cannot be totally separated from our work
life, just like emotional conditions are not be separable from
physical conditions
Nature of People

Motivated Behavior
● Positive Motivation – encouraging others to change their
behavior by luring them with promotions or any other profits.

● Negative Motivation – forcing or warning others to change

their behavior else there can be serious consequences
Nature of People

Value of Person
● Employees want to be valued and appreciated
for their skills and abilities followed by
opportunities which help them develop
themselves
Nature of the
Organization
Nature of the Organization

● Defines the character of the company by

acting as a mirror reflection of the company
Nature of the Organization

Social System
● Formal- Groups formed by people working together in a
firm or people that belong to the same club.
● Informal- A group of friends, people socializing with others
freely, enjoying.
Nature of the Organization

Mutual Interest
● Every organization needs people and people need
organizations to survive and prosper.
● It’s a mutual understanding between the organization and the
employees that helps both reach their respective objectives
Nature of the Organization

Ethics
● They are the moral principles of an individual, group and
organization.
● In order to attract and keep valuable employees, ethical
treatment is necessary and some moral standards need to be
set.
 Challenges and
Opportunities of
Organizational Behavior
 Opportunities of Organizational Behavior

Improving quality and

Improving People’s Skills Empowering people
Productivity

Helping Employees
Stimulating Innovation and
Improving Ethical Behavior Balance Work-Life
Change
Conflicts
 Evolution of
Organizational Behavior
● The great Greek Philosopher Plato wrote about the
“Importance of Leadership”
● Great philosopher Aristotle had addressed the topic
“Persuasive Communication”
● In 500 B.C Chinese Philosopher Confucius had started “
Emphasizing ethics and leadership”
● In 1776, Adam Smith, economist in his book “Wealth of
Nations” he propounded new form of organizational structure
based on “Division of labor and Work specialization.
● Robert Owen is an important name in the history of OB
because he was one of the first industrialist whoa argued for:
● Regulated hours of work for all workers
● Child labour laws
● Public Education
● Company supplied meals at work
● Business involvement in community projects
● German Sociologist, Max Weber developed “a theory of authority
structures and described organizational activity based on authority
structures”
● Soon after Max Weber, F W Taylor introduced a “systematic
use of goal setting and rewards to motivate employees” and
als0o defining clear guidelines for improving production efficiency
by his one of the paper called “The Principles of Scientific
Management”
● Henry Fayol, Real father of modern Management defined the
universal functions that all managers perform and the principles
(14 principles of Management) that constitute good management
practices.
● In the late 1950’s people like Abraham Maslow, Douglas
McGregor, David McCellenad, Fred Fiedler, Herzberg, Freud
Sigmund and other behavioral scientists propounded many theories
on employee behavior
● According to Stephen P Robbins - “Organisational behaviour is a
field of study that investigates the impact that individuals,
groups and structure have on behaviours within the organizations
for the purpose of applying such knowledge towards improving
an organizations effectiveness.
● According to Fred Luthans “Organisational behaviour is directly
concerned with the understanding production and control of
human behaviour in organization”.
Nature of Organizational
Behavior
● OB is the study of human behaviour in the organization.
Whenever an individual join an organization he/she brings with
him/her unique set of personal characteristics, experiences from
other organizations and a personal background.
● First Stage- OB must look at the unique perspective that each
individual brings to the work setting.

● Seconds Stage- OB is to study the dynamics of how the

incoming individuals interact with the broader organization. No
individual can work in isolation he/she comes into contact with
the other individuals and the organization in a variety of ways
• The OB must be studied from the perspective of the
organization itself because an organization exists before a
particular individual joins in and continues to exist after he or
she left the organization.

• Thus, we can say that we cannot study individual behaviour

completely without learning something about the organizations.
On the other hand, we cannot study the organizations without
studying the behaviour of the individuals working in it. This is
because the organization influences and is influenced by the
people working in it.
Fundamental Concepts
of
Organizational Behavior
Fundamental Concepts

Individual Differences
● Holistic Concept Each person is different from one to
another in intelligence, physique, personality, diction, or
any such trait.
● Only a person can take responsibility and make decisions,
a group, by nature, cannot do so. A group is powerless
until individuals therein act.
Fundamental Concepts

A whole Person
● When an individual is appointed, his or her skill alone
is not hired, his/her social background, likes and dislikes,
pride and prejudices are also hired.
● A person’s family life cannot be separated from his or
her work life.
Fundamental Concepts
Total Quality Management
A ● It is a philosophy of management that is driven by the constant attainment of
customer satisfaction through the continuous improvement of all organizational
processes.

1. Intense focus on the customer

2. Concern for continuous improvement
3. Improvement in the quality of everything the organization does
4. Accurate measurement
5. Empowerment of employees
Fundamental Concepts

B
Reengineering
● Reconsiders how work would be done and the organization structured
if they were being created from scratch.
● It asks managers to reconsider how work would be done and their
organization structured if they were starting over
Fundamental Concepts

Improving people skills

● It will help management to better plan and respond to changes in the
workplace.
● Flexible working hours and increased is authority motivates
employees to perform to their best.
● Management now welcomes upward communication and
participation of lower level employees in the decision making
process.
Fundamental Concepts

Stimulating Innovation and Change

● Today's successful organizations must foster innovation and master
the art of change or they'll become candidates for extinction.

● The challenge for managers is to stimulate employee creativity and

tolerance for change.
Fundamental Concepts

Work-Life Balance
● It can be tough to make time for family and work.

● Employers can help employees to achieve work-life balance by

instituting policies, procedures, actions, and expectations that enable
them to pursue more balanced lives, such as flexible work
schedules, company sponsored family events and activities etc.
Fundamental Concepts

Improving People Skills

● Employees needs to improve their skills through a little effort
and showing basic common courtesy in their business dealings
like being polite, avoiding conflict, listening, appreciating etc.

● On the other hand employers’ should also concentrate more on

training employees with this above context.
 Shortcomings of
Organizational Behavior
Shortcomings

Failure of Individual on the

Domestic Front
● The subject helps an individual understand human behaviour
better only in the work place, he or she may be a failure on
the domestic front.

● People who have a thorough grounding of behavioural

disciplines have sometimes proved to be total wrecks in their
personal lives.
Shortcomings

Failure to contribute to improve

Interpersonal Relations
● The subject of OB has not contributed to improved
interpersonal relations in organizational settings.
● Jealousies, backstabbing, legpulling, intrigues, harassment, and
inequalities in rewards go side by side with nice lecturers,
training programmes, discussions, smiles, assurances, niceties
and the like.
Shortcomings

OB is selfish and exploitative

● It serves only the interest of the management

● With high emphasis on motivation, efficiency, and productivity,

the subject breeds a competitive spirit among the employees
Shortcomings

Expectation of quick fix solutions

● A serious problem that has plagued the subject is the
tendency of managers to expect quick fix solutions from
behavioural programmes.

● When organizations stagnate, decline, or encounter a threat of

closure, there will be conflict and stress as a result it leads to
one of the critical issue to find answers to related questions.
Shortcomings

OB will not totally abolish conflict

and frustration,
● it can only reduce them It means, OB not an absolute answer
to problems. It is only a part of the whole fabric of an
organization.
● However, OB will not solve unemployment
● It will not make up for our own deficiencies. It cannot
substitute for poor planning, inept organizing, or inadequate
controls.
 Conclusion of
Organizational Behavior
 Conclusions

01. 02.
Organizational Behavior is It interprets people-
the study and application of organization relationships
knowledge about how in terms of the whole
people, individuals, and person, the whole group,
groups act in organizations. the whole organization,
It does this by taking a and the whole social
system approach. system
 Conclusions
03.
Its purpose is to build better
relationships by achieving
human objectives,
organizational objectives, and
social objectives. OB
encompasses a wide range of
topics, such as human behavior,
change, leadership, teams, etc.
04.
Organizational behavior has a great
impact on individuals and also in
organizations that cannot be ignored. In
order to run the businesses effectively
and efficiently, the study of
organizational behavior is very essential.
 References

https://www.tutorialspoint.com/organizational_behavior/organizational_behavi
or_introduction.htm
https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/what-is
-organizational-behavior/
https://blog.capterra.com/what-is-organizational-behavior/
https://online.usi.edu/degrees/business/mba/human-resources/what-is-organiz
ational-behavior/
https://www.managementnote.com/key-elements-of-ob/
Thank You!