Unit1 OB

BBA-I SEM
Organization Behavior
Code : 102
ITS College - DR. SIDHI VERMA

1 Organization Behavior - 102
Video of Organization Behavior
https://www.youtube.com/watch?v=biJwCaczx7s

Syllabus of Unit-I
Introduction, nature and scope of OB,

challenges and opportunities for OB,
organizational goals, Models of OB, Impact of
global and cultural diversity on OB.
No. of Classes : 6

Pictures

OB Importance to a Manager
• An organization benefits in five significant ways when managers have a
strong foundation in organizational behavior:
1.Managers understand the organizational impacts of individual and group
behaviors.
2.Managers are more effective in motivating their subordinates.
3.Relationships are better between management and employees.
4.Managers are able to predict and control employee behavior.
5.The organization is able to make optimally efficient use of human
resources.

Objectives/Importance of OB
1. Identify and promote positive behaviors:

2. Create a positive workplace culture:
3. Motivate employees to exhibit "prosocial" behaviors:
4. Identify the causes of "antisocial" behaviors:
5. Assess likely employee response before initiating
organizational change:

Introduction of Organization
 An organization is a collection of people who work together to achieve
individual and organizational goals.
 An entrepreneur organizes various factors of production like land, labour,

capital, machinery, etc. for channelizing them into productive activities.
 Introduction The study of organizations and of the collection of people within them
together comprises the field of organizational behavior. Organizational behavior
(OB) is the study of human behavior in organizational settings, the interface
between human behavior and the organization, and the organization itself

Introduction of Organization Behavior
 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.
 The study of organizational behavior includes areas of research dedicated to improving

job performance, increasing job satisfaction, promoting innovation, and
encouraging leadership.

Introduction of Organization Behavior
 Organizations are social systems. Organization is a combination of humanity and technology.
 OB is the study and application of knowledge about how people act within the organization. It is a
human tool for human benefit .
 OB is 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.

Definitions of Organization Behavior
“Organizational behavior is a subset of management activities concerned with understanding,

predicting and influencing individual behavior in organizational setting.”—Callahan, Fleenor
and Kudson.
“Organizational behavior is a branch of the Social Sciences that seeks to build theories that can
be applied” to predicting, understanding and controlling behavior in work organizations.”—
Raman J. Aldag.
“Organizational behavior is the study and application of knowledge about how people act within
an organization. It is a human tool for human benefit. It applies broadly to the behavior of
people in all types of organization.”— Newstrom and Davis.
Organizational behaviour as a systematic study of the actions and attitudes that people exhibit within
organizations.” Robins

Videos to understand Levels of Organization
Behavior
• https://www.youtube.com/watch?v=1PGKlwtOoR0

Levels of Organization Behavior
1. Individual Level – Deals with the concepts at the individual
level. Examples of individual-level concepts are perception,
personality, learning, motivation, and attitude.
2. Group Level – Deals with the concepts at the group level.
Examples of group-level concepts are team, conflict, leadership,
power, and politics. Group-level concepts may include how groups
are formed, how to make effective teams, how individually and
collectively the group activities can be improved, how to motivate
employees, and which type of group would be suitable for a
particular assignment.
3. Organizational Level – Deals with the concepts at the
organizational level. Examples of organizational-level concepts are
change management and organizational culture. Other topics
discussed at organizational level include the concept of
organization, different organizational models, and organizational
change along with its impact and implementation. The working
conditions and stress management are also discussed at the
organizational level.
Nature of Organizational Behavior
1. A Separate Field of Study and not a Discipline Only:
By definition, a discipline is an accepted science that is based on a theoretical foundation. But,
O.B. has a multi-interdisciplinary orientation and is, thus, not based on a specific theoretical
background. Therefore, it is better reasonable to call O.B. a separate field of study rather than a
discipline only.
2. An Interdisciplinary Approach:
Organizational behavior is essentially an interdisciplinary approach to study human behavior at
work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology,
sociology and anthropology to make them applicable for studying and analyzing organizational
behavior.
3. An Applied Science:
The very nature of O.B. is applied. What O.B. basically does is the application of various
researches to solve the organizational problems related to human behavior. The basic line of
difference between pure science and O.B. is that while the former concentrates of fundamental
researches, the latter concentrates on applied researches. O.B. involves both applied research
and its application in organizational analysis.

Nature of Organizational Behavior (contd….)
4. A Normative Science:
Organizational Behavior is a normative science also. While the positive science discusses only cause
effect relationship, O.B. prescribes how the findings of applied researches can be applied to socially
accepted organizational goals. Thus, O.B. deals with what is accepted by individuals and society engaged
in an organization. O.B. is normative as well that is well underscored by the proliferation of management
theories.
5. A Humanistic and Optimistic Approach:
Organizational Behavior applies humanistic approach towards people working in the organization. It, deals
with the thinking and feeling of human beings. O.B. is based on the belief that people have an innate
desire to be independent, creative and productive. It also realizes that people working in the organization
can and will actualize these potentials if they are given proper conditions and environment. Environment
affects performance of workers in an organization.
6. A Total System Approach:
The system approach is one that integrates all the variables, affecting organizational functioning. The
systems approach has been developed by the behavioral scientists to analyze human behavior in view of
his/her socio-psychological framework. Man's socio-psychological framework makes man a complex one
and the systems approach tries to study his/her complexity and find solution to it.

Study of organizational behavior
 i. Why people behave in a particular way

 ii. Why one person is more effective than the other?
 iii. Why one group is more effective than the other?
 iv. Why one person is more effective in one organization as compared to the other
organizations?
The study of above things gives sound knowledge about human behavior and this
knowledge can be applied in shaping the behavior and taking various decisions related to
policy making in human resource management.

Scope of the Organizational Behavior
 Impact of personality on performance  Job design

 Employee motivation  Impact of culture on organizational
 Leadership behavior
 How to create effective teams and groups  Management of change
 Study of different organizational  Management of conflict and stress
structures
 Organizational development
 Individual behavior, attitude and
learning  Organizational culture
 Perception  Transactional analysis
 Design and development of effective  Group behavior, power and politics
organization
 Study of emotions

Goals of the Organizational Behavior
i. Changing the traditional slow organizational practices to modern technology based fast
workplaces.
ii. Empowering employees through training and development to improve their productivity and
quality of work.
iii. The existing practices (traditional) cannot make workers to be dynamic and adopt new
practices. The goal of OB is to make employees to behave rationally through behavior
modeling and be dynamic and visionaries. They should be prompted to analyze the changes
taking place in the organization and draw logical inferences through reasoning.
iv. Traditional managers are “command and control” type of people. The goal of OB is to convert
these type of people. The goal of OB is to convert these managers into stable leaders who
work as team members along with their subordinates. Although hierarchy of positions exist,
it should not be exhibited.
v. Many decision-makers, many a time, work on their instructions. But instructions do not work
always. Therefore, the goal of OB is to make these people to take decisions after studying the
problems in a systematic way.

Goals of the Organizational Behavior (contd…)
vi. As technology is ruling the business world today, it has made 24 x 7 global business
environment more sophisticated. Hence, one of the OB goals is to design and develop fast work
practices adopting technology to increase speed and efficiency of work. This leads to increased
productivity of both the work force and the organization. The digital divide (separation of tech-
savvy and non tech- savvy people) has to be minimized or eradicated by investing on human
capital.
vii. Today’s workforce comprises of more knowledge workers. Hence the organizations have to
work on emotional aspects of workers which develops the creativity, innovation and enterprising
spirit of each individual workers leading to better behavior.
viii. The most important goal of OB is to induce workers to be ethical in their operations and in
discharging assigned tasks.
Thus, the overall objective of OB is to improve the skills of the people working in an organizations
in terms of changing individual behavior and group behavior so that organization becomes
successful. The main goal is to make the organization a learning organization.

Challenges and Opportunities of Organizational Behavior
Challenges and opportunities for organizational behavior are massive and rapidly changing for improving
productivity and meeting business goals. Main challenges and opportunities of organizational behavior are;
1. Improving Peoples’ Skills :
These two different categories of skills – managerial skills and technical skills.
Some of the managerial skills include listening skills, motivating skills, planning and organizing skills, leading
skills, problem-solving skills, decision-making skills.
2. Improving Quality and Productivity : The key dimensions of quality as follows.
Performance: Primary rating characteristics of a product such as signal coverage, audio quality, display
quality, etc.
Features: Secondary characteristics, added features, such as calculators, and alarm clock features in
handphone
Conformance: meeting specifications or industry standards, the workmanship of the degree to which a
product’s design or operating characteristics match pre-established standards
Reliability: The probability of a product’s falling within a specified period
Durability: It is a measure of a product’s life having both economic and technical dimension
Services: Resolution of problem and complaints, ease of repair
Response: Human to human interfaces, such as the courtesy of the dealer « Aesthetics: Sensory
characteristics such exterior finish
Reputations: Past performance and other intangibles, such as being ranked first.

(Contd..)
3. Total Quality Management

(TQM) :
(a) An intense focus on the customer,
(b) Concern for continual improvement,
(c) Improvement in the quality of
everything the organization does,
(d) Accurate measurement and,
(e) Empowerment of employees.

(Contd..)
4. Managing Workforce Diversity :
This refers to employing different categories of employees who are heterogeneous in terms of gender, race,
ethnicity, relation, community, physically disadvantaged, elderly people, etc
5. Responding to Globalization :
Today’s business is mostly market-driven; wherever the demands exist irrespective of distance, locations,
climatic conditions, the business
operations are expanded to gain their market share and to remain in the top rank, etc. Business operations
are no longer restricted to a particular locality or region.
The company’s products or services are spreading across nations using mass communication, the internet,
faster transportation, etc.
More than 95% of Nokia (Now Microsoft) handphones are being sold outside of their home country Finland.
Japanese cars are being sold in different parts of the globe. Sri Lankan tea is exported to many cities around
the globe.

(Contd..)
6. Empowering People :
• Encouraging the employees to participate in the work-related decision will sizable enhance
their commitment to work.
• Empowerment is defined as putting employees in charge of what they do by eliciting some
sort of ownership in them.
7.Follow the Product Life Cycles:

• In recent times, the product life cycles are slimming, the methods of operations are improving,
and fashions are changing very fast. In those days, the managers needed to introduce major
change programs once or twice a decade.
• Today, change is an ongoing activity for most managers. So, workers need to continually
update their knowledge and skills to perform new job requirements.

Challenges and Opportunities of Organizational
Behavior (Contd..)
8. Stimulating Innovation and Change :

Victory will go to those organizations that maintain flexibility, continually improve
their quality, and beat the competition to the market place with a constant stream of
innovative products and services.
For example, Compaq succeeded by creating more powerful personal computers for the
same or less money than EBNM or Apple, and by putting their products to market
quicker than the bigger competitors.
9. Emergence of E-Organisation & E-Commerce : It is a dramatic change in the way

a company relates to its customers. At present e-commerce is exploding. Globally, e-
commerce spending was increasing at a tremendous rate.

(Contd..)
10. Improving Ethical Behavior :

The complexity in business operations is forcing the workforce to face ethical dilemmas, where
they are required to define right and wrong conduct to complete their assigned activities.
For example :
•Should the employees of a chemical company blow the whistle if they uncover the discharging
its untreated effluents into the river are polluting its water resources?
•Do managers give an inflated performance evaluation to an employee they like, knowing that
such an evaluation could save that employee’s job?
11. Improving Customer Service :

OB can contribute to improving organizational performance by showing drat how employees’
attitudes and behavior are associated with customer satisfaction.

(Contd..)
12. Helping Employees Balance Work-Life Conflicts : Employees are increasingly

recognizing that work is squeezing out personal lives and they’re not happy about it.
• For example, recent studies suggest that employees want jobs that give them flexibility in their
work schedules so they can better manage work/life conflicts.
• Also, the next generation of employees is likely to show similar concerns.
• A majority of college and university students say that attaining a balance between personal life
and work is a primary career goal. They want a life as well as a job.
13. Flattening World : Thomas Friedman’s book The World Is Flat: A Brief History of the
Twenty-First Century makes the point that the Internet has “flattened” the world and created an
environment in which there is a more level playing field in terms of access to information.

Models of OB
1. Autocratic model :
This model relies on POWER. For example, managers have the ability, authority to control
their employees and the employee’s performance in this stage will be much lower than
expected.
Autocratic model :
2. Depends on power.
2. Managerial orientation is authority.
3. Employee orientation is obedience.
4. Employee psychological result depends on boss .
5. Employee needs met is subsistence .
6. Performance result is minimum.

Models of OB
2.Custodial model :
This model usually depends on economic resources (money). For instance, managers can
simulate their employees by offering them facilities, and benefits, but in this model the employee’s
won’t work as a team (Less sharing with others) because everyone will depend on his self to get
more benefits than the others.
Custodial model :
1. Depends on economical resource.
2. Managerial orientation is money.
3. Employee orientation is security and benefit.
4. Employee psychological result depends on organization.
5. Employee needs met is security.
6. Performance result is passive cooperation.

Models of OB
3. Supportive model :
This model relies on leadership. For example, managers support their employees by
encouraging, and supporting them to perform a better job, get along with each other and as
well as developing their skills. The Performance results will be awakened drives.
Supportive model
1. Depends on leadership.
2. Managerial orientation is support.
3. Employee orientation is job and performance.
4. Employee psychological result is participation.
5. Employee needs met is status and recognition.
6. Performance result is awakened drives

Models of OB
4. Collegial model :
Employees depend on each other cooperatively and work as a team to do the task.
Everyone will be having a normal enthusiasm self- discipline, and responsible behavior
towards their tasks.
Collegial model
1. Depends on partnership
2. Managerial orientation is teamwork
3. Employee orientation is responsible behavior
4. Employee psychological result is self discipline
5. Employee needs met is self actualization
6. Performance result is moderate enthusiasm

Models of OB
5. System model :
This model is based on trust, self-motivation, and the performance results will be more than
expected, because employees will be committed to do their tasks as expected, and as well
as organizational goals.
System model :
1. Depends on trust, community, understanding
2. Managerial orientation is caring, compassion
3. Employee orientation is psychological ownership
4. Employee psychological result is self motivation
5. Employee needs met is wide range
6. Performance result is passion, commitment, organization goal

Impact of Global and Cultural Diversity on OB
Organizational Behavior :
Organizational behavior is a field of study
that investigates the impact that individuals,
groups and structures have on behavior
within an organization for the purpose of
applying such knowledge towards
improving an organization's effectiveness.
It is an interdisciplinary field that includes

sociology, psychology, communication, and
management

Impact of Global and Cultural Diversity on OB (Cont…)
What is Globalization?
Globalization is the free movement of
goods, services and people across the
world in a seamless and integrated
manner.
Globalization means to increase their base
of operations, expand their workforce with
minimal investments, and provide new
services to a broad range of consumers.

Evaluation of Globalization :
1.Thirty years ago, national borders acted
to insulate most firms from foreign
competitive pressures.
2.Capitalism is replacing the government
control and now organizations are no
longer constrained by national borders.
3.The world today has became a GLOBAL
VILLAGE

Impact of Globalization:
1.Multi national corporations
developed operations world wide
and companies developed joint
ventures with foreign partners.
2.Workers increasingly chased job
opportunities across national
borders.

Globalization in OB :
1.As organizations have become more global , their work
force has become culturally diverse.
2.Globalization has created a large shift in organizational
behavior as increasing diversity has brought together people
of different backgrounds with different values, cultures and
beliefs all working together for common objective.

Impact on Global Manager :

Globalization affects a manager’s skill in two ways:
1.In a foreign country and
2.In your own country.
Changes to Employee :
Work force diversity
Unsupportive and hostile work environment
Fears of discrimination
Resistance to change

Work Diversity :
Organizations are becoming more and more heterogeneous.
one of the most important and broad based challenges currently facing
organization is adapting people who are different.
Melting pot assumption :

The melting pot assumption is replaced by one that recognizes and values
differences.
Diversity, if positively managed, can increase creativity and innovation in
the organization.


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BBA-I SEM

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

Introduction, nature and scope of OB,

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

1. Identify and promote positive behaviors:

ITS College - DR. SIDHI VERMA

 An entrepreneur organizes various factors of production like land, labour,

ITS College - DR. SIDHI VERMA

 The study of organizational behavior includes areas of research dedicated to improving

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

“Organizational behavior is a subset of management activities concerned with understanding,

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

 i. Why people behave in a particular way

ITS College - DR. SIDHI VERMA

 Impact of personality on performance  Job design

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

3. Total Quality Management

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

7.Follow the Product Life Cycles:

ITS College - DR. SIDHI VERMA

8. Stimulating Innovation and Change :

9. Emergence of E-Organisation & E-Commerce : It is a dramatic change in the way

ITS College - DR. SIDHI VERMA

10. Improving Ethical Behavior :

11. Improving Customer Service :

ITS College - DR. SIDHI VERMA

12. Helping Employees Balance Work-Life Conflicts : Employees are increasingly

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

It is an interdisciplinary field that includes

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

ITS College - DR. SIDHI VERMA

Impact on Global Manager :

ITS College - DR. SIDHI VERMA

Melting pot assumption :

ITS College - DR. SIDHI VERMA

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