ORGANIZATIONAL

BEHAVIOUR
DR. SHWETA SINGH
 CONCEPT

• Organizational Behavior is a field of study that investigates the impact that individuals,
groups, and structure have on behavior within organizations for the purpose of
applying such knowledge towards improving an organization's effectiveness.
• OB is the study and application of knowledge about how people act within the
organization. It is a human tool for human benefit .
 CONCEPT

• A complex set of forces affects the nature of organizations today. It can be classified
into four areas: 1. People 2. Structure 3. Technology 4. Environment

When people join the organization to accomplish the goals/ objectives, some kind of
structure is required. They use machinery, gadgets & technology to achieve the
organizational goals. At the same time they are influenced by external environment
OB IS INTERDISCIPLINARY

• Major Contributing Disciplines to the field of organizational Behavior 

1.Psychology: how individuals behave in response to a stimulus.
2.Sociology: how individuals relate to groups and to each other.
3.Social Psychology: How individuals and organizations perceive conflict, threats and undergo stress.
4.Anthropology: understanding customs traditions and social mores of people since the organization is a
microcosm of the larger society.
5.Political Science: Understanding Power, Authority and Corporate Politics.
6.Economics: Appreciating monetary (wage and bonus) and non monetary incentives (housing, schooling
and medical care) to employees so that they are motivated to produce more efficiently and effectively.
IMPORTANCE OF OB

• OB provides a road map to our lives in organizations.

• OB uses scientific research to understand and make organization life, as it helps to
predict what people will do under various conditions
• It helps to influence organizational events – to understand and predict events
• It helps individual understand herself/ himself in better fashion.
• It helps manager to manage human resources effectively.
SCOPE OF THE ORGANIZATIONAL BEHAVIOUR

• Impact of personality on performance

• Employee motivation
• Leadership
• How to create effective teams and groups
• Study of different organizational structures
• Individual behaviour, attitude and learning Perception
• Design and development of effective organization
• Job design
•
SCOPE OF THE ORGANIZATIONAL BEHAVIOUR

• Impact of culture on organizational behaviour

• Management of change
• Management of conflict and stress
• Organizational development
• Organizational culture
• Transactional analysis Group behaviour, power and politics
• Job design
• Study of emotion
 CHALLENGES FOR OB

• Globalization to Respond Managing Diversity

• Improving Quality and Productivity
• Improving Customer Service
• Improving People Skills
• Stimulating Innovation and Change
• Coping with Temporariness
 CHALLENGES FOR OB

• Helping employees balance work-life conflicts

• Creating Positive work environment
• Improving Ethical Behaviour
• Working in network organization
• Interpersonal Level
• Group Level
• Inter-group Level
ORGANIZATIONAL THEORIES

Organizational theories helps to -:

study an organization
its corporate designs
structures
behavior of individuals or groups
aim to provide an overview of how
organizations function
 improve efficiency and profitability
1.CLASSICAL ORGANIZATION THEORY
 
CLASSICAL ORGANIZATION THEORY

• it’s the organization’s responsibility to make changes for better performance.

• Classical theorists viewed organizations as machines and humans as an extension of that machine. 
Characteristics of the classical theory include:
 Organizations are integrated and centralized systems where authority lies with the central figure
 The focus is on outputs or results rather than inputs provided by employees
 Labor is standardized and isn’t subject to change; labor doesn’t depend on the role
BENEFIT : helped standardize the management process and increase efficiency
CRITICISM : didn’t apply to complex organizational structures and doesn’t factor in social and psychological aspects of employees.
NEOCLASSICAL ORGANIZATION THEORY
 
NEOCLASSICAL ORGANIZATION THEORY

• The neoclassical theorists viewed organizations as a social system where human actions and interactions have a direct impact
or effect on performance. 
• humans are at the center of this theory and social relationships and interactions are instrumental to organizational efficiency.
Characteristics of the neoclassical school include:
 Focus is on human behavior and their relationships with one another
 Teamwork is essential for the smooth functioning of organizations and it’s only possible through effective communication and
feedback
 Employees have different needs and expectations, there are diverse factors motivating them to perform better
BENEFITS: It moves away from traditionalist views where humans are treated like machines,
CRITICISM : It ignores the environment in which an organization operates.
MODERN ORGANIZATION THEORY

 
MODERN ORGANIZATION THEORY

• Some essentials of this theory are:

• An organization is an open system that interacts with its environments (internal and
external) to develop and grow in the market
• It encompasses multiple aspects and levels of organizational environments—micro- and
macro-environment
• An organization is a dynamic system that responds and adjusts to the changing environment
BENEFITS: modern theory solved several persisting challenges of the past
ORGANIZATIONAL DESIGN

Organizational design is a process of developing and changing the organization’s structure

by its managers. It is a chart containing the reporting structure i.e. who reports to whom.

Organizational structure is thus a framework on which an organization is patterned for

coordinating and carrying out organizational tasks. (Kumar, A. and Bhat, A., 2008).
ORGANIZATIONAL DESIGN

• Organizational design involves decisions about the following six elements:

1. Work Specialization:
Work specialization describes to which the overall task of the organization is broken down and divided into smaller component
parts.
The work will be done efficiently and effectively.
It saves time and also the employee skills of performing his job successfully increase through repetition
Disadvantages :
When specialization is overdone, jobs can become more simplified.
Employees do one single task they become bored and tired.
the scope of the employee’s growth will be limited. 
ORGANIZATIONAL DESIGN

2. Departmentalization:
After jobs have been specified through work specialization process, now they will be grouped in common tasks.
 There are five common forms of departmentalization:
• Functional Departmentalization
• Product Departmentalization
• Geographical Departmentalization
• Matrix Departmentalization
• Customer Departmentalization
ORGANIZATIONAL DESIGN

3. Chain of Command:
Organizational design is defined an order which authority and power in an organization is
used and delegated from top management to the lower management.
 It also ensures clear assignment of duties and responsibilities of every employee at every
level.
4. Span of Control:
 It determines the number of employees that a manager can effectively and efficiently manage.
ORGANIZATIONAL DESIGN

5. Centralization Vs Decentralization:
“If top managers make the organization’s key decisions with little or no input from below,
then the organization is centralized.”
Decentralization can be defined as “the spread of power away from the centre to local
branches or governments.”
ORGANIZATIONAL DESIGN

6. Formalization:
Formalization is the extent to which employee behaviour is guided by rules and procedures.
 The organizations with high formalization have strict rules and regulations.
 The low formalization organizations have very few written rules and procedures and are
less stable.
https://hbr.org/video/4711696145001/the-posthierarchical-organization
ORGANIZATIONAL DESIGN

• STRATEGIC MANAGEMENT PROCESS:

1. Identify the Organization’s Current Mission, Objectives, and Strategies
2. Analyze the Environment
3. Analyze the Organization’s Resources
4. Identify Opportunities and Threats
5. Identify Strengths and Weaknesses
6. Reassess the Organization’s Mission and Objectives
7. Formulate Strategies
8. Implement Strategies
9. Evaluate Results
MODELS OF OB