Fundamentals of

Organizational Behaviour
By
Narendra Salunke

Google Classroom Code: n j57efa

CO1: DESCRIBE the major theories, concepts, terms, models,
(Remembering) frameworks and research findings in the field of
organizational behavior.
Organization
Behaviour…..What & Why?
Organizational Behaviour

Organizational Behaviour is a field of study that

investigates the impact that individuals, groups and
organizational structures have on behaviour within
organization for the purpose of applying such knowledge
towards improving an organizations effectiveness.

Organizational Behaviour can be defined as the

understanding, prediction and management of how
human behaviour affects the performance of the
organization
Who is a Manager & What is
Management?
 Takes Decisions
Manage Resources
Manager Takes Responsibility
Managerial Functions
Subject Focus:
Human Resource have been, are and
will continue to be the major
challenges and critical to competitive
advantage

The answer to the successful

Organization: “People are the key”
 Scope:

Individual Level Group Level Organizational Level

•Perception •Group Dynamics • Organizational
•Personality •Group Norms Structure
•Attitude • Intra Group & • Culture
•Motivation Intergroup • Change Management
Relations • Environmental
•Leadership Impacts
•Communication • Technology
• Work Stress
Management
 Importance of OB
1. Stimulating Innovation & Change
9. Improving Ethical Behaviour
2. Improving Customer Services
10. Group Dynamics
3. Responding to Globalization

Imp of OB

6. Balancing work life 4. Responding to Economic Pressure

7. Managing Work force Diversity 5. Creating positive work
8. Improving People Skill environment
Improving Customer Service
 Importance of OB
1. Stimulating Innovation & Change
9. Improving Ethical Behaviour
2. Improving Customer Services
10. Group Dynamics
3. Responding to Globalization

Imp of OB

6. Balancing work life 4. Responding to Economic Pressure

7. Managing Work force Diversity 5. Creating positive work
8. Improving People Skill environment
 Importance of OB
1. Stimulating Innovation & Change
9. Improving Ethical Behaviour
2. Improving Customer Services
10. Group Dynamics
3. Responding to Globalization

Imp of OB

6. Balancing work life 4. Responding to Economic Pressure

7. Managing Work force Diversity 5. Creating positive work
8. Improving People Skill environment
Interesting Fact:

1839

1826

1847

1947 1911
 Ariana Grande
Kylie Jenner
289 M Followers Chris Ronaldo
Rs. 6 to 7 Crore per post 388 M Followers
300 M Followers
Rs. 8 to 9 Crore per post Rs. 6 to 7 Crore per post

MAY 2022

Priyanka Chopra
72 M Followers
Rs. 2 Crore per post

Virat Kohli
177 M Followers
Rs. 1.5 Crore per post
Evolution of OB
OB

Human
Industrial Relation
Revolution Movement

Scientific
Management
Pre – Classical Contributions
I. Industrial Revolution
I. INDUSTRIAL REVOLUTION

One to One relationship in Organization

People used to work in small group or alone
Faced exploitation by employer as there were no stipulated
conditions to regulate the employment conditions
The growth of factory system further aggravated the
conditions of employment
Adam Smith (1723 – 1790)

Economist
Published book: “The Wealth of Nations” (An Inquiry
in to Nature & Causes of Wealth of Nations) in 1776
Advocated division of labor
Gave the example of manufacturing pins to illustrate
his point
Robert Owen (1771-1858)
(New Lanark Mill)

First to recognize, how the growing factory system is

demeaning to the workers
HRM Pioneer
Proposed Legislative Reforms regarding Standard
Working Day 0f 10.5 Hrs
Refused to employ children below the age of 10 yrs
Improved Living Conditions of Employee
Father of Personnel Administration
Silent Monitor Concept
Silent Monitor:

The 'silent monitors' were hung next to each worker in

the mills, with each side displaying a different colour.
•'Bad' behaviour was represented by the colour black;
•‘Indifferent' was represented by blue;
•‘Good' by Yellow;
•‘Excellent' by White.
Charles Babbage(1792-1871)

Mathematician
Author of the book “Economy of Machinery &
Manufactures” in 1832
Father of Modern Computing
First Mechanical Calculator & Analytical Engine
Supporter & Advocate of Division of Labor: Saves
Time, Reduce Wastage, High skills can be attained
Devised Profit Sharing Plan
 Adrew Ure & Charles Dupin
(1778-1857 & 1784-1873)

British & French Academician

Advocated the Study of Management
Henry R. Towne (1844-1924)

Author of research Paper: “The Engineer as an

Economist”
Emphasized the need to consider Management as
separate field of study
Emphasized the importance of Business Skills for
running business
Need to develop Management Principles
Henri Fayol (1841 - 1925)
Proposed Principles &
Functions of Management
Max Weber (1864 to 1920)

Sociologist
 Claimed that the Industrial Revolution's focus on
efficiency constrained the worker to a kind of
"prison" and "stripped a worker of their individuality"
Proposed Bureaucratic Model or Bureaucratic
Management: organization shall be rested on rational
and legal principles and maximized technical
efficiency."
II. Scientific Management
 Frederick Winslow Taylor (1856-1915)
(Started working as apprentice in Midvale Steel Co. & rose to the
post of Chief Engineer in 6 years)

Father of Scientific Management

Machine model of Organization
Wrote the revolutionary book: “Principles of
Scientific Management”: Gave 4 Step scientific
management plan
a. Develop Science for each element of Job
b. Scientifically Select employees & Train them to do these Tasks/Jobs
c. Supervise employees to follow the prescribed method to do the
Task/Job
d. Continue to plan the work but use the workers to actually get the
work done
•Tackled “Soldiering Problem”
1. Fear of loosing Jobs
2. Faulty Wage System
3. Use of Outdated Methods
•Two Major Management Practices evolved:
a. Piece Rate Incentive System
b. Time & Motion Study
 Frank & Lillian Gilbreth
(1868-1924 & 1878-1972)

Frank Gilbreth: Father of Motion Studies

Motion Studies:
- Finding out best sequence & Minimum no. of motions
required to complete a job
- Exploring new ways of eliminating unnecessary motions
Devised a classification scheme to label 17 basic hand
motions
Henry Gantt (1861-1919)

Task Bonus System

Bonus System for Foreman
Gantt Charts
Gantt Chart : Modern Version
III. Human Relation Movement
Elton Mayo

Hawthorne Experiment
- AT & T Founded in 1876 (Divided in 1984)
- By 1929: 40,00 workers were there in Western Electric
Plant of Hawthorne (Chicago, USA)
- In 1927, Researchers Elton Mayo & Fritz Roethlisberger
were invited to join the research
- Consisted of 4 - Parts
1. Illumination Experiment
Carried out to find out relationship between Output &
Illumination

2. Relay Assembly Test Room Experiment

• A Group of 6 Girls was selected
• Informal Environment was maintained
• Productivity & Morale went high
• Conclusion: Socio-psychological Factors such as
Feeling of being Important, Recognition,
Attention, Participation, Non Directive
Supervision held the key for higher production
3. Mass Interview Program:

Regarding Work, Working Conditions, Supervision

Direct Questions: Responses were guarded
Indirect Method: Confirmed the importance of Social
Factors at Work
4. Bank Wiring Test Room Experiment
Carried out by Roethlisberger & Dickson
Objective: To develop new method of observation &
Finding out the causes of restricting the output
Group of 14 workers were selected
Observations:
-Employees were restricting their o/p
- Group has evolved with their own “unofficial”
productivity norms
- Isolation, Harassment & Punishment to Non-
followers
Contribution
Organization is also a social system, wherein group
psychology plays an important role, hence informal
group efforts shall more be relied.
Productivity of the employee is NOT the function of
only physical condition of the work & Money Wages
paid to them.
Employee can be motivated by psychological and
social wants.
Productivity of the employee depends heavily upon
Satisfaction of the employee in their work situation.
IV. Organizational Behaviour
The study of group was emphasized in Human Relations
Movement
A Research based new approach on individual in groups
and organization was developed in late 1950’s and early
1960’s: called “Organizational Behaviour”.
1970s: Theories of Motivation, Leadership, Job
Satisfaction
1980s: Organizational Culture, Team Work, Political
Skills in an Organization
1990s: Personal Integrity, Character, Virtues, Ethics
2000s: Fred Luthans: POB (Positive Organizational
Behaviour): Confidence, Hope, Optimism
 Contributing fields of OB

Psychology

Economics
Evolution of OB
OB

Human
Industrial Relation
Revolution Movement

Scientific
Management
Models of OB

V/s
 Autocratic

SOBC Custodial

Models
of OB

Collegial Supportive
Autocratic Model
Autocratic Model
Custodial Model
Custodial Model

Ex. Government & Semi – government Organizations,

Public Sector Banks
Supportive Model

Ex. Sport Teams, NGO’s

Educational Institutions,
Corporate Org such as M&M,
Tata Corp. Infosys etc.
Collegial Model
Collegial Model

Ex. Google , Facebook, Apple,

etc.
Comparative Chart
SOBC: Stimulus-Organism Behaviour-Consequences
Model (based on concept of Social Learning)
Ex. Manufacturing Based
Organizations, Automobile
Companies etc.

Behaviour Consequences
(Response)

Stimulus Organism
Models of OB: Summarized..
Sr. No. Model Name Description
(Driving Power)
1 Autocratic • Manager has the power to command his/her employee
(Authority/ Power) • Psychological Result is “Increased Dependence on Boss”
2 Custodial • Organization satisfy security & Welfare needs of
(Security: employees
Salary/Money) • Focuses on better employee satisfaction,
• Results in dependence on Organization rather on Boss
3 Supportive • Depends on leadership instead of Power or Money,
(Support) • Support employees Job performance,
• Psychological result is the feeling of participation and
task involvement
4 Collegial • Management is seen as joint contributor rather than boss
(Team Work) • Employee response to this situation is responsibility
• Psychological result is “Self discipline”, enthusiasm
5 SOBC • Discovery of the personalized set of behavioural
(Behaviour - contingencies that regulate each others behaviour.
Consequences) • The leader and subordinate have a negotiable, interactive
relationship and are consciously aware of how they can
influence each other’s behaviour by giving or holding back
desired rewards.
Behavioral Bias
Indiscipline & Irresponsible Behaviour
Law of Diminishing Returns
Unethical Practices & Manipulation
Not an absolute answer
Behavioural Bias
Dependence & Contentment

Stellar Services & Products

Stakeholders’ Expectations

Employee
Satisfaction
Organization Performance

Organization Profitability
Indiscipline & Irresponsible Behaviour
Law of Diminishing Returns
Performance
Employee

OB Practices
Unethical Practices & Manipulation
Use of OB practices is not an absolute answer to
every performance related problem
Thank Q?
 MCQ Test: Unit#1_FOB
Day : Wednesday
Date: 17/01/2023
Time: 02:00 pm to 03:00 pm (4th Lecture)
Total Marks: 30 Marks
Venue: 102 – OB-102: 2022-23 Google Classroom
(Code: n j 5 7 e f a)