Introduction to

Organizational Behavior

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Organizational Behavior
Organizational Behavior studies the
influence that individuals, groups and
structure have on behavior within
organizations.

Its chief goal is to apply that knowledge

toward improving an organization’s
effectiveness.

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Organizational Behavior

 OB studies what people do in an

organization and how that
behavior affects the performance
of the organization.

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Organisational Behaviour
– Meaning and Definitions
 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.”

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Organisational Behaviour
– Meaning and Definitions
 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.”
 According to Fred Luthans, “Behaviour is directly
concerned with the understanding, prediction and
control of human behaviour in organisations.”
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Study of Organisational
Behaviour helps in Studying:
 Why people behave in a particular way?
 Why one person is more effective than the other?
 Why one group is more effective than the other?
 Why one person is more effective in one organisation as
compared to the other organisations?

 The study of above things gives sound knowledge about human

behaviour and this knowledge can be applied in shaping the
behaviour and taking various decisions related to policy making
in human resource management.

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Focal Points of OB
Jobs

Work

Absenteeism

Employment turnover
Productivity

Human performance
Management

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Contributing Disciplines
to the OB Field
Micro:
The
Individual

Macro:
Groups &
Organizations

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 Contributing Disciplines

Psychology seeks to Sociology studies

measure,explain, people in relation to their
and change fellow human beings
behavior

Social psychology
focuses on the
influence of people
on one another

Anthropology is the Political science is the

study of societies study of the
to learn about human behavior of individuals
beings and their activities and groups within
a political environment

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Challenges and Opportunities
for OB
 The workplace is contains a wide mix of
cultures, races, ethnic groups, genders and
ages
 Employees have to learn to cope with rapid
change due to global competition
 Corporate loyalty has decreased due to
corporate downsizing and use of temp workers
 Managers can benefit from OB theory and
concepts

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Responding to Globalization
 Increased foreign assignments
• Differing needs and aspirations in
workforce
 Working with people from
different cultures
• Domestic motivational techniques
and managerial styles may not
work
 Overseeing movement of jobs
to countries with low-cost labor
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 OB Offers Insights Into:
 Improving quality and
productivity
 Customer service and
building a customer-
responsive culture
 Developing people skills

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Three Levels of OB Analysis

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 Organizational Behavior:
Dynamics in Organizations

Psychosocial

Interpersonal
Behavioral
Organizational
Behavior
 Organizational Variables that
Affect Human Behavior

Performance Work
Appraisal Design

Communication

Jobs

Organizational
Structure Human Organizational
Behavior Design
Organizational vs. Individual
Point of View

Clockworks or Snake pit?

Human Behavior
in the
Organization
 Internal/External Perspective of
Human Behavior

Internal Perspective External Perspective

Understand Thoughts,feelings, External events,
behavior in past experiences, environmental forces, &
terms of and needs behavioral consequences

Explain Individuals’ history Surrounding external

behavior by & personal value events & environmental
examining system forces

Each perspective has produced

motivational & leadership theories.
 Formal vs. Informal
Organization
Formal Organization - the official,
legitimate, and most visible part of the
system
Informal Organization - the unofficial and
less visible part of the system

Hawthorne Studies: studies conducted during the

1920s and 1930s that discovered the existence of
the informal organization
Formal & Formal organization
Informal (overt)
Elements of Goals & objectives
Policies & procedures
Organizations Job descriptions
Financial resources
Authority structure
Communication channels
Products & services
Social
Surface
Informal organization
(covert)
Beliefs & assumptions
Perceptions & attitudes
Values
Feelings, such as fear, joy
anger, trust, & hope
Group norms
Informal leaders
 Change Management
 Change is not always perceived as positive,
and many employees may be resistant to
changes within their organizations. Therefore,
successful business transformation is all about
getting employees' buy-in and embedding new
behaviors in the workplace.

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 Behaviour in Times of Change

 Critical to identify clear goals

 Poor leadership and lack of alignment
 Identifying the resources needed to make change a
success
 A Lack of agility and slow approval process
 Fear and conflicts
 Resistance to change and lack of commitment
 Poor communication in the workplace

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Factors Affecting in Times of
Change

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How to Encourage Change

• Education and communication

• Participation and involvement
• Active Listening and Counseling
• Negotiation and agreement
• Manipulation and cooperation
• Explicit and implicit coercion--managers
can rely on force to push past change

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Challenges for Managers: Competing
in the Global Economy
 International Recruiting
 Managing Employee Immigration
 Incurring Tariffs and Export Fees
 Payroll and Compliance Challenges
 Loss of Cultural Identity
 Foreign Worker Exploitation
 Global Expansion Difficulties
 Immigration Challenges and Local Job Loss

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 Implications for Managers
 OB helps with:
• Insights to improve people skills
• Valuing of workforce diversity
• Empowering people and creating a
positive work environment
• Dealing with labor shortages
• Coping in a world of temporariness
• Creating an ethically healthy work
environment

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 Keep in Mind…
 OB’s goal is to understand and predict
human behavior in organizations.
 Fundamental consistencies underlie
behavior.
 It is more important than ever to learn OB
concepts.
 Both managers and employees must learn to
cope with temporariness.

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