UNIT I

INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR

Syllabus

 Introduction:
 Nature and scope of OB
 Challenges and opportunities for OB,
 Organization Goals,
 Models of OB
 Impact of Global and Cultural diversity on OB.
Organisational Behaviour: Introduction

 The study of Organizational Behavior (OB) is very interesting and challenging too.
It is related to individuals, group of people working together in teams. The study
becomes more challenging when situational factors interact. The study of
organizational behavior relates to the expected behavior of an individual in the
organization.
 No two individuals are likely to behave in the same manner in a particular work
situation. It is the predictability of a manager about the expected behavior of an
individual. There are no absolutes in human behavior. It is the human factor that
is contributory to the productivity hence the study of human behavior is
important. Great importance therefore must be attached to the study.
 Definition of Business Organization

 According to Fred Luthans, “Behaviour is directly concerned with the understanding, prediction and
control of human behaviour in organisations.”
 In words of K Aswathappa, “OB is the study of human behaviour in organisational setting, of the interface
between human behaviour and organisation and of the organisation itself.”
 In words of Stephen P. Robbins, “OB is a field of study that investigates the impact that individuals,
groups and structures have on behaviour within organisations for the purpose of applying such
knowledge towards improving an organisation’s effectiveness.”
 According to L. M. Prasad, “Organisational behaviour can be defined as the study and application of
knowledge about human behaviour related to other elements of an organisation such as structure,
technology and social systems.”
 According to Davis and Newstram, “Organisational behaviour is the study and application of knowledge
about how people act within organisations.”
 Meaning of Organizational Behavior

 OB is the study of individual behaviour in isolation, when in group and as a part of an organisation.
The study of individual behaviour only, would be incomplete because behaviour is affected by the
people surrounding us as well as by the organisation, in which we work.
 Thus, organizational behaviour is:
 The study of human behavior
 The interaction between people and the organization
 And the organization itself
OB studies what people do in an organization and how the behavior affect the performance of the
organization.
 Organisational Behaviour – Scope

 Individual Behaviour: Individual are important part of the organization who work to achieve organizational
goals in the hope to achieve their personal goals. Their behaviour is affected by factors like:
 Personality
 Perception
 Learning
 Value
 Motivation
 Job Design
 Social and Cultural Factors
These factors help in understanding behaviour of people as individuals.
 Group Behaviour

Besides depicting as individual behaviours, peple also behave as part of the group, both formal and informal. Their
behaviour as group members is different from that as individuals.
The group behaviour is affected by factors such as:
 Group Dynamics
 Team Work
 Communication
 Leadership
 Power and Politics
 Decision Making
 Conflict and Negotiation
These factors helps in understanding human behaviour as a group that contributes to organizational effectiveness.
 Organization

It involves study of the organization that includes studying:

 Organization structure
 Organization culture
 Organization politics
 Organizational change
 Organizational development
 Work Stress
These factors help in understanding how organization contribute to organizational effectiveness.
Organisational Behaviour – Scope

Individual Organization
Group Behaviour
Behaviour

Organizational
Effectiveness
 Nature of OB

 The following are the nature of organizational behavior:

1) Part of Management:
2) Distinct Field of Study
3) Levels of Study
4) Inter-disciplinary study
5) Applied Field of Knowledge
6) Science and Art
7) Based on Contingency approach to Management
8) Systematic Study
 1. Part of Management:

 Thoughnot complete part of management, organization behaviour is an

important part of management that deals with human behaviour.
 Thebehavioural approach to management deals with organizational
behaviour which emphases the importance of understanding the factors that
affect human behaviour in organization.
 2. Distinct field of study

 Organizational behavior has emerged as a distinct field of study that focuses on human
side of the organization.
 It is based on various research studies which have developed as theories which concern
people at the work place.
 It recognize that employee’s behaviour is not affected by conditions alone. Interpersonal
relations at the work situation are also important.
 It is, thus, a distinct field of study with a common body of knowledge.
 3. Levels of Study

 OB studies have three determinants of behaviors in organization,

individual behaviour, group behavior and organization itself.
 Itstudies the impact of these determinants on the behaviours of
members working in the organization and uses this knowledge to
increase organizational effectiveness.
 4. Inter-disciplinary

 As OB deals with behaviour of people, it draws knowledge from pertinent

fields in the area of behaviour sciences, like psychology, sociology and
anthropology.
 Integration of knowledge from different fields of study helps in better
understanding of human behaviour at work and coordination of individual
needs with organizational needs.
 5. Applied field of Knowledge

 OB is an applied field of knowledge as it applies the knowledge gained about

individuals, group and organizations on enhancing organizational effectiveness.

 It is a complex study that manage people at work. Understanding human behaviour is

a difficult task as human needs and desires change according to situations.

 Some of the areas that OB deals with in application of behavioural knowledge are:
how to motivate people to work hard, how to develop a strong system of
communication in the organization, how to reduce conflict at work place, how to
reduce resistance to change on the part of organizational members.
6. Science and Art

 OB is both science and art.

 As a science, it draws knowledge about human behaviour from different
fields of study,
 as a art, it applies that knowledge about human behaviour and modify the
human behaviour in the right direction.
7. Based on contingency approach to
management

 Contingency theory is a viewpoint that argues that appropriate managerial

action depends on the particular parameters of the situation.
 Hence, rather than seeking universal principles that apply to every situation,
contingency theory attempts to identify contingency principles that
prescribes actions to take depending on the characteristics of the
situations.
 8. Systematic Study

 OB is not based on intuition. It is based on rational thinking that explain why people behave in a
particular way.
 It predicts what people would do in different situations in a systematic way.
 Individual behaviour is not random but based on consistent predictions which provide reasons behind
different behaviours of different individuals.
 The prediction are based on systematic study of behaviour based on scientific evidence which collects
data under controlled conditions and interprets it in a systematic way.
 The data gets transformed into theories that define cause and effect relationships for action performed by
people in the organization.
Goals of Organizational Behaviour

 The major goals of Organizational behaviour are:

(1) To describe systematically how people behave under variety of conditions,
(2) To understand why people behave as they do,
(3) Predicting future employee behaviour, and
(4) Control at least partially and develop some human activity at work
 Goals/Objective of Organizational
Behavior
The goals of the organizational behavior are as follow:
• The employee absenteeism, productivity and turnover are emphasized.
• Also the employee performance is determined by the organizational citizenship concept.
• Attitudes consist of evaluative statements that are favorable or unfavorable and concerned with people,
objects or events.
• Moreover the attitude is formed from three basic elements that are cognition, effect and behavior.
• The beliefs, knowledge, opinions and information possessed by a person constitute the cognitive element
of that person.
• Hence the feelings or emotions constitute the effective element of the attitude.
• The intention to act in a specific way represents the behavioral element of the attitude of a person.
• So there are three major job related attitudes which are job involvement, job satisfaction and
organizational commitment.
Importance of organizational behavior

OB is an important field of study that aims to improve organizational effectiveness by applying the knowledge of
individuals, group and organization on organizational performance. The importance of OB in managing the human
resources lies in the following facts:

1. Sound work environment

2. Provide scientific vision to study human behaviour
3. Helps in creating effective leaders
4. Improve inter-personal relations
5. Synthesizes scientific judgment with managerial judgment
6. Maintain cordial industrial relations
Model of the Organizational Behaviour

 Autocratic Model
 Custodial Model
 Supportive Model
 Collegial Model
 Autocratic Model

1. Depends on power. “You do this - or else”

2. In the autocratic environment the managerial
orientation is formal, official authority.
3. The employee orientation is obedience to a boss.
4. Employee needs met is subsistence.
5. Performance results is minimum

 The root level of this model is power with a managerial orientation of authority. The employees in this model are
oriented towards obedience and discipline. They are dependent on their boss. The employee requirement that is met
is subsistence. The performance result is less.
 The major drawbacks of this model are people are easily frustrated, insecurity, dependency on the superiors,
minimum performance because of minimum wage.
 Custodial Model

 This model is economic resources with a managerial orientation of money.

The employees in this model are oriented towards security and benefits
provided to them. They are dependent on the organization. The employee
requirement that is met is security.
 Manager simulate employees by offering benefits, less team work.
 This model is adapted by firms having high resources as the name
suggest. It is dependent on economic resources. This approach directs to
depend on firm rather than on manager or boss.
 They give passive cooperation as they are satisfied but not strongly
encouraged.
 Supportive Model

 The root level of this model is leadership with a

managerial orientation of support. The employees
in this model are oriented towards their job
performance and participation. The employee
requirement that is met is status and recognition.
The performance result is awakened drives.
 This model is dependent on leadership strive. It
gives a climate to help employees grow and
accomplish the job in the interest of the
organization. Management job is to assist the
employee’s job performance. Employees feel a
sense of participation.
 Collegial Model

 The root level of this model is partnership with a managerial

orientation of teamwork. The employees in this model are
oriented towards responsible behavior and self-discipline.
 The employee requirement that is met is self-actualization.
The performance result is moderate zeal.
 This is an extension of supportive model. The team work
approach is adapted for this model. Self-discipline is
maintained. Workers feel an obligation to uphold quality
standard for the better image of the company. A sense of
“accept” and “respect” is seen.
 Autocratic Custodial Supportive Collegial

Basis of Model Power Economic sources Leadership Partnership

Managerial Orientation Authority Money Support Team Work

Employee Orientation Obedience Security and Benefits Job Performance Responsible Behavior

Employee Dependence on Boss Dependence on Participation Self-Discipline

Psychological Result Organization

Employee needs met Subsistence Security Status and recognition Self actualization

Performance Result Minimum Passive Co-operation Awakened drives Moderate enthusiasm

Challenges and opportunities for OB

 Globalization
 Workforce Diversity
 Promoting ethical behaviour in business
 Leadership and corporate social responsibility
 Promoting work life balance
 Changing outlook of the workforce
 Empowerment
 Improving quality and productivity
 Changing technology