ORGANISATIONAL

BEHAVIOUR
S. VIVEKANANTHA,
Faculty Member,
Department of Management Studies
RVS COLLEGE OF ARTS AND SCIENCE
INAMKULATHUR, TRICHY
Unit 1
Organisational Behaviour: Introduction, Definition,
Nature & Scope; Basic Concepts of OB. including,
Behaviour – Individual & organizational, and Self Image
[includes discussion on self esteem & self efficacy];
Introduction to the theoretical constructs and models
of Organisational Behaviour.
Organisational Behaviour
“OB is directly concerned with the understanding,
prediction, and control of human behaviour in
organisations.” - Luthans

“OB is a field of study that investigates the impact

that individuals, groups, and structure have on
behaviour within organisations for the purpose of
applying such knowledge towards improving an
organisation’s effectiveness.” - Stephen P.
Robbins
Objectives of OB
OBJECTIVES OF ORGANISATIONAL BEHAVIOUR

To Describe Behaviour To Influence Behaviour

To Understand
To Predict Behaviour
Behaviour
Key Elements of OB

People Structure

Key Elements
Of OB

Technology Environment
Nature of OB
1. It focuses on the behaviour of individuals
2. It is inter-disciplinary
3. It is an applied science
4. It is an art as well
5. It adopts a humanistic approach
6. Its ultimate aim is to attain the organisational
objective
Scope of OB
i cs
Pers am cts
S
o n
y fli n
U AL

Perc nality D
p Con atio

GRO
ep o u c
Attit tion Gr roup uni ship cs
IVID

u G mm der oliti
Moti des

U
Job S vation Co Lea & P

PS
IND

atisf e r
Lear action Po
w
ning
V al u
es OB

t ru c t ure
S
e
Cultur
e
Chang nt
v e l o pme
De
R E
U
U CT
R
ST
Organisational Behaviour Models
Custodial

Models of
Autocratic Organisational Supportive
Behaviour

Collegial
The Autocratic Model
Under the autocratic model, the manager uses his
authority and directs the subordinates to do the work as
per his specifications. The subordinates are not given the
freedom to act. They have to carry out the task faithfully
as per their boss’s instructions.
Thus under the autocratic model, the employees are
made to work like machines. The use of such an
approach may not always give the manager the desired
results. In the long run, the employees may develop
frustration and may be prone to stress conditions. Their
physical or mental health may get affected. The
organisation may also begin to face such behavioural
problems as a high rate of absenteeism, low morale, high
rate of labour turnover and so on.
Custodial Model
If under the autocratic model the employee has to
depend on his boss all the time, under the custodial
model he has to depend on the organisation. The
organisation takes care of all the needs of the employees.
This is done by the introduction of a number of welfare
measures like rent free accommodation, subsidised food,
free education for the children of employees and so on.
Such welfare measures make the employees dependent
on the organisation that becomes their custodian.
Under the custodial approach the employee is happy as
the organisation satisfies his needs. But there is no
guarantee that his performance level will be high. ‘A
happy and satisfied employee need not be a productive
employee’.
Supportive Model
In this case the manager supports his subordinates in
the performance of their tasks. The focus here is on
managerial leadership rather than on the exercise of
authority or fulfillment of subordinates’ needs. The
manager does not make unilateral decisions but
involves his subordinates in the decision-making
process.
The supportive model is suitable in those workplaces
where the employees are self-motivated. It has
greater relevance for managerial personnel rather
than the operative level workers.
Collegial Model
In the collegial model the manager participates in the
process of task performance by the subordinates. In
other words, the manager and the subordinates work
as a team. There is better interaction among the
team members. Such an approach is suitable where
every subordinate is able to be self-disciplined.
The basic foundation of the collegial model lies on
management’s building a feeling of partnership with
employees. Under collegial approach, employees feel
needed and useful. They consider managers as joint
contributors to organisational success rather than as
bosses.
 Autocratic Custodial Supportive Collegial

Basis of model Power Economic Leadership Partnership

Sources

Managerial Authority Money Support Teamwork

Orientation

Employee Obedience Security & Job Performance Responsible

Orientation Benefits behaviour

Employee Dependence on Dependence on Participation Self-discipline

psychological boss organisation
result

Employee needs Subsistence Security Status and Self-actualization

met recognition

Performance Minimum Passive Awakened drives Moderate

result cooperation enthusiasm
ORGANISING
Organising is the process of identifying and grouping
of activities required to attain the objectives,
delegating authority, creating responsibility and
establishing relationships for the people to work
effectively.
NATURE OF ORGANIZATION
1. Common Objectives
2. Specialization or Division of Labour
3. Authority of Structure
4. Group of Persons
5. Co-ordination
6. Communication
7. Environment
8. Rule and Regulations
SPAN OF CONTROL or SPAN OF MANAGEMENT

 Span of management means the number of people

managed effectively by a single superior in an
organization.
 The term “Span of management” is also known as
“Span of supervision”, “Span of authority” and “Span
of responsibility”.
 If the number of members is too large, it will be
very difficult to manage the persons and perform the
work effectively.
FORMAL ORGANISATION

A formal organisation typically consists of a

classical hierarchical structure in which positions,
responsibility, authority, accountability and the
line of command are clearly defined and
established.
Each and every person is assigned the duties and
given the required amount of authority and
responsibility to carryout the job.
The inter relationship of staff members can be
shown in the organisation chart and manuals
INFORMAL ORANISATION

Informal organisation is an organisation which

establishes the relationship on the basis of
member’s interaction, communication, personal
likings and disliking, and social contacts within as
well as outside the organisation.
It arises naturally on the basis of friendship or
some common interest which may or may not be
related with work.
ORGANISATIONAL CHARTS

Organisational charts are prepared for the purpose

of describing the organisational structure clearly.
An organisation chart is a graphical portrayal of
the various positions in the enterprise and the
formal relationships among them.
It shows the organisational relationships and
activities within an organisation.
KINDS OF ORGANISATION CHARTS

1. Vertical Chart
2. Horizontal Chart or Left to Right Chart
3. Circular Chart or Concentric Chart
1. Vertical Chart
Chairmen

Managing Director

Production Manager Marketing Manager Personnel Manager

Supervisor for Supervisor for Operation Supervisor for Operation

Operation A B C

Workman I Workman II Workman III

2. Horizontal chart or Left to right chart

Managing Branch
Salesman I
Director Manager I

Managing Managing Branch

President Salesman II
Director Director Manager II

Managing Branch Salesman

Director Manager III III
3. Circular Chart or Concentric Chart

Supervisor III

Supervisor II

Supervisor I
Production Marketing
Manager Manager

Chair
man

Personnel Finance
Manager Manager
STEPS IN ORGANISING PROCESS

1. Determination of Activities
2. Grouping of Activities
3. Assignment of Duties
4. Delegation of Authority
5. Establishment of Structural Relationship
6. Co-ordination of Activities
DEPARTMENTATION / FUNCTIONAL DEPARTMENTATION

Departmentation means the process of grouping

of similar activities of the business into
department, division or other homogeneous units.
It is used for the purpose of facilitating smooth
administration at all levels.
Departmentation involves grouping of people or
activities with similar characteristics into a single
department or unit.
DEPARTMENTATION BY DIFFERENT
STRATEGIES
1. Departmentation by Numbers
2. Departmentation by Time
3. Departmentation by Enterprise Function
4. Departmentation by Territory or Geography
5. Departmentation by Customers
6. Departmentation by Process or Equipment
1. Departmentation by Numbers

In this case, departments are created on the basis

of number of persons forming the department.
Similar types of activities are performed by small
groups.
In such case, the each group is controlled by a
supervisor or an executive.
For example, in the army soldiers are grouped into
squads on the basis of the number prescribed for
each unit.
2. Departmentation by Time:

Under this base, the business activities are

grouped together on the basis of the time of
performance.
For example, a manufacturing unit working in
three shifts of eight hours each per day may group
the activities shift wise and thus having separate
department for each shift.
The basic idea is to get the advantages of people
specialized to work in a particular shift.
3. Departmentation by Enterprise Function
President

Vice-president

MD

Marketing Dept Production Dept Personnel Dept Finance Dept

Production
Market Financial
Planning Recruitment &
Research Planning
Selection
Production
Engineering Budgets
Market Planning
Training
Purchasing
Sales General
Administration Accounting
Tooling Labour

Advertising Cost
Repairs Accounting
4. Departmentation by Territory or Geography

President

Managing
Director

Northern Western Southern

Central Region Eastern Region
Region Region Region
5. Departmentation by Customers

Branch Manager

Manager Manager Manager

Cooperative Loan Business Loans Housing Loans

Manager Manager
Agricultural Loans Personal Loans
6. Departmentation by Process or Equipment

President

General Director

Dying &
Ginning Spinning Weaving Packing & Sale
Printing
7. Departmentation by Product or Service
General Manager

Heavy Engg
Automobile
Division

Finance Sales Finance Sales

Producti Personne Producti Personne

on l on l

Earth Moving Power Products

Equipment Division Division

Finance Sales Finance Sales

Producti Personne
Producti Personne
on l
on l
AUTHORITY

According to Hendry Fayol, “Authority is the right

to give orders and the power to exact obedience”.
Koontz and O’Donnell have defined authority as,
“Authority is the power to command other to act
or not to act in a manner deemed by the possessor
of the authority to further enterprise or
departmental purposes”.
LINE AUTHORITY or LINE ORGANISATION

Line authority exists between superior and his

subordinate.
Line authority is the direct authority which a
superior exercises over a number of subordinates
to carry out orders and instructions.
In organisation process, authority is delegated to
the individuals to perform the activities.
 Manager

Superintendent 1 Superintendent 2

Foreman 1 Foreman 2 Foreman 1 Foreman 2

W W W W W W W W W W W W
STAFF AUTHORITY

Staff authority is exercised by a man over line

personnel.
The relationship between a staff manager and the
line manager with whom he works depends in part
on the staff duties.
In a management, staff refers to those elements of
the organisation which help the line to work most
effectively in accomplishing the primary objectives
of the enterprise, the nature of the staff
relationship is advisory.
DECENTRALISATION OF AUTHORITY

 Centralization and decentralization refer to the

location of decision-making authority in an
organisation.
 “Centralization” means that the authority for most
decisions is concentrated at the top of the
managerial hierarchy whereas ‘decentralisation’
requires such authority to be dispersed by
extension and delegation through all levels of
management.
DELEGATION OF AUTHORITY

 Delegation of authority is a process which enables

a person to assign works to others and delegate
them with adequate authority to do it.
 Delegation consists of granting authority or the
right to decision-making in certain defined areas
and charging the subordinate with responsibility
for carrying through an assigned task
Unit 2

Perception and Learning; Personality and Individual Differences;

Motivation – Content & Process Theories of Work Motivation - and Job
Performance; Personal Values, Attitudes and Beliefs; Conflicts & Stress –
Concept, why and how & Management
Perception

Perception can be defined as a process by which

individuals organise and interpret their sensory
impressions in order to give meaning to their
environment.
Perception is an important mediating cognitive
process through which persons make interpretations
of the stimulus or situation they are faced with.
Perception is the process of becoming aware of
situations, of adding meaningful associations to
sensations.
Unit 2
Perception and Learning; Personality and Individual
Differences; Motivation – Content & Process Theories
of Work Motivation - and Job Performance; Personal
Values, Attitudes and Beliefs; Conflicts & Stress –
Concept, why and how & Management
Perception

Perception is the process of receiving information

about and making sense of the world around us. It
involves deciding which information to notice, how to
categories that information, and how to interpret it
within the framework of our existing knowledge –
shape opinions, decisions and actions.
Perception

Perception can be defined as

a process by which individuals
organize and interpret their
sensory impressions in order
to give meaning to their
environment.

 People’s behaviour is based on their

perception of what reality is, not on reality itself.
 The world as it is perceived is the world that
is behaviourally important.
The mind forms shapes that don't exist
Man/Woman
Sensation and Perception
Sensation is the response of a physical sensory organ:
Eyes see
Ears hear
Hands touch
Nose smell
Tongue taste
 Sensation, thus, is essentially a physical process.
 Perception, on the other hand, is essentially a
psychological activity. It correlates, integrates and
comprehends diverse sensations to arrive at a meaningful
conclusion. Sensation, thus, provides the basis for
perception.
Process of Perception

REACTING

CHECKING

INTERPRETING

ORGANISING

SELECTING

RECEIVING
Process of Perception

Stage I Receiving Stimuli

Stage II Selecting Stimuli
Stage III Organising Stimuli
Stage IV Interpreting Stimuli
Stage V Checking Stimuli
Stage VI Reacting to Stimuli
Learning

Modification of behaviour taking place through

observation, training or practice is what is called
learning.
“Learning is the process of having one’s behaviour
modified, more or less permanently, by what he does
and the consequences of his action, or by what he
observes” - Munn and others
“Relatively permanent change in behaviour
potentiality that results from reinforced practice or
experience” - Steers and Lyman
Nature or Characteristics of Learning

1. Learning results in change in behaviour.

2. The change may be good or bad. It must be
remembered here that a person acquires certain
bad habits like smoking or drinking only through
learning.
3. The change must be relatively permanent.
Behavioural change caused by fatigue is only
temporary and it involves no learning.
4. A mere change in one’s thought process or
attitude is not learning. It must be accompained
by a change in behaviour as well.
 Cont………

5. Any change in behaviour due to ageing, illness or

injury is not the result of learning. A change in
behaviour is deemed to be the outcome of learning
only it arises out of observation, training or practice.
6. Any positive change has to be permanent. To achieve
permanency, the practice needs to be reinforced,
supported or strengthened. In the absence of
reinforcement, the expected behaviour will gradually
disappear.
7. Learning is a continuous process. It is not something
that occurs only during a particular stage in one’s life.
Factors determining Learning

Motivation Environment

Qualities of the
Trainer & Practice
Trainee
Determinants of
Learning Meaningfulness
of
Feedback
The subject

Reinforcement Time Schedule

Theories on Learning

1. Classical Conditioning Theory

2. Operant Conditioning Theory
3. Cognitive Theory
4. Social Learning Theory
Classical Conditioning

The credit for developing the

classical conditioning theory is
given to Ivan Pavlov, a Russian
psychologist.
Learning is the process by
which experience or practice
results in a relatively
permanent change in behavior
or potential behavior.

Ivan Pavlov
 Cont….

Classical conditioning is modifying behaviour so that a

conditioned stimulus is paired with an unconditioned
stimulus and elicits an unconditioned behaviour.
The classical conditioning theory is based on Pavlov’s
experiments to teach a dog to salivate in response to
the ringing of a bell. Pavlov offered the dog meat and
noticed that the dog was salivating. Afterwards,
without offering meat, be merely rang a bell. The dog
had no salivation.
 Cont….

As the next step he rang the bell before giving the dog
meat. This went on for sometime. Thereafter, Pavlov
merely rang the bell without offering meat and noticed
that the dog was salivating. The dog, thus, learnt to
relate the ringing of the bell to the presentation of meat.
The classical conditioning theory has some relevance in
understanding human behaviour in workplaces. For
example, the employees can link their pay hike to the
better financial position of their employer. In other
words, they expect a hike in their pay when they know
that the financial position of the organisation is very
sound.
 Cont….
The classical conditioning theory, however, has
certain limitations. For example, it does not explain
all aspects of human learning. The environment in
the organisation also makes understanding of human
learning difficult.
Theories on Learning

kjals