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live together with others in social groupings as a family, a clan, community or friendship group or organization. The individuals are bound together in a network of stable social relationships. Hence, our society is organizational with large and complex organizations that exist in every sphere of human activity. Organisations play an important role in the quality of human life. Hence, the study of organizations has become imperative. Organisations are usually studied from two perspectives – • Micro • Macro Micro perspective focuses on human beings in the organization. It studies human beings as individuals – an individual’s psychological make-up, his interaction with other individuals and groups, variables determining his behavior in the organization and the strategies that can be adopted to govern his behavior as a desirable one in the organization. The micro perspective of organizational study is taken care of in “OB”. Macro perspective considers organization as a unit of analysis. It emphasizes on the study of human behavior as a collectivity of people, how organizations are structured, how technology affects people in the organization and how organization interacts with the environment. The macro aspect of organizational study is taken care of in “Oganisational Theory”. Any definition of OB should put emphasis on 3 features – • Organisational Behaviour is the study of human behavior. • The study is about behavior in organizations. • Knowledge about human behavior would be useful in improving an organisation’s effectiveness.
Definitions • “Organisational Behaviour” is the study and application of knowledge about how people – as individual and as groups – act within organizations. • It 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 organisation’s effectiveness.
Organisational Behaviour means the study of behavior of individuals, and groups in organizations and organizations themselves, as they act and interact to attain desired outcomes.
OB is a scientific study in which a number of research studies and conceptual developments are taking place. It is also an applied science wherein information about effective practices in one organization is being extended to many others. OB provides a useful set of tools at many levels of analysis – It helps managers to understand the behavior of individuals within an organization; understand the interpersonal relationships, when two people (coworkers or a superior – subordinate pair) interact; to understand the dynamics or relationships within small groups, both formal teams and informal groups; to understand the intergroup relationships; and finally understand the organizations as whole systems that have interorganisational relationships (Eg – Mergers and Joint ventures). Goals of OB • To describe – The first objective is to describe – how people behave under a variety of conditions.
To understand – as to why people behave as they do. To predict – Predicting future employee behavior is another goal of OB. Managers would have the capacity to predict which employees may be dedicated and productive or which ones might be absent or disruptive on a certain day so that the manager could take preventive actions.
It provides a rational thinking about people. Goal-Oriented. A Field of Study. OB is an action – oriented and goal-directed discipline. It provides a rational thinking about people and their behaviour. It helps in demolishing ‘incorrect’ assumptions one may hold about behaviour. Human Tool. Organisational behaviour draws a rich array of research from these disciplines. Managers should be able to improve the results through their own and their employee’s actions. Features of Organisational Behaviour The essential characteristics of organisational behaviour are as follows: (i) (ii) (iii) (iv) (v) (vi) An Integral Part of Management.• To control – The final goal of OB is to control and develop some human activity at work. team effort and productivity. Inter-disciplinary Approach. What makes it a field in its own right is the attempt to integrate various aspects and levels of behaviour. research and application associated with a growing concern for people at the workplace. explain and predict human behaviour in the organisational context so that it may be moulded into result-yielding situations. sociology and anthropology. group behaviour and behaviour of the organisation itself. Its study helps in understanding the human behaviour in work organizations. OB involves three levels of analysis of behaviour – individual behaviour. It helps in understanding and predicting the behaviour of individuals. OB has assumed the status of a distinct field of study. OB is a part of general management and not the whole of management. It represents behaviour approach to management. It includes creative thinking among the managers to solve human problems in organisations. It provides . The major goals of organisational behaviour are to understand. It is significant to note that because of the importance of human behaviour in organisations. skill development. OB is a human tool for human benefit. The field of organisational behaviour is heavily influenced by several other behavioural sciences and social sciences. Managers also want to make an impact on employee behavior. Levels of Analysis. OB is a field of study backed by a body of theory. The prominent among these are psychology.
(viii) Satisfaction of Employees’ Needs. It is the organisation’s responsibility to provide congenial climate in the organisation so that people may get need satisfaction and the organisation may attain its objectives. It is possible to predict relationships between variables on a broad scale. OB is both a science as well as an art. It cannot provide specific answers to all organisational problems. OB seeks to fulfill employees’ need and aspirations. (vii) Science and Art. The systematic knowledge about human behaviour is a science. The exact prediction of behavior of people in organisations is also not possible. However. .generalisations that managers can use to anticipate the effects of certain actions on human behaviour. organisation behaviour is not an exact science like physics or chemistry. both organisation and individuals can be benefited by each other. Every employee in the organisation wants to fulfill his needs through organisational activities. Thus. but it is difficult to apply predictive models in all situations. The application of behaviour knowledge and skills clearly leans towards being an art.
.(i) Individual (ii) Group. Behaviour at all three levels is interdependent and interrelated.. groups (say class or section) and the institute as a whole – are all important and outstanding performance of each individual and group is recognized and highlighted. The performance of individuals. and (iii) Organisation. viz.Levels of Analysis of OB Organisational Behaviour focuses on three levels of analysis.
Cultural and Other Factors Work Stress SOCIOLOGY Group Level : Groups and Teams Leadership Communication Conflict. Dynamics of Change Formal and Informal Organisation Status and Roles GROUP Organisational Behaviour INDIVIDUAL SOCIAL PSYCHOLOGY Change in Attitude and Behaviour Group Processes : Norms Communication Group Decision-making ANTHROPOLOGY Organisation System Level : Organisational Culture Stress Management Organisational Change and Development Morale and Productivity Cross-cultural Analysis POLITICAL SCIENCE Organisational Power Politics Conflicts Coalitions ORGANISATION .PSYCHOLOGY Individual Level: Personality. Perception Attitudes and Values Individual Decision-making Learning Motivation. Job-satisfaction Social.
whether acting in isolation or as part of a group. social.) Behaviour at the Organisation Level . etc. perception. motivation. cohesiveness. norms. group and individual levels. they may resist change.) Behaviour at the Individual Level .An organisation is a system composed of several interdependent individuals and groups. while they may fight for change in certain situations. leadership. 2.1. The behaviour of individuals is a complex phenomenon and is affected by a large number of factors such as personality. The co-operative relationships help the organisation in achieving its objectives. in response to expectations of the organisation. They particapte in shaping the culture of the organisation and also in organisation development.Behaviour pattern of individuals is also influenced by the groups to which they belong. attitudes. Understanding the effect of group relationships is important for managers in today’s organisations. Individuals and groups operate within the structure of formal organisation. Inter group relationships may be in the form of cooperations or competition.Organisations are made up of their individual members. 3. At times. learning. Stress caused by the activities of individuals and groups has to be managed at the organisational . or as a result of influence of the external environment. The study of behaviour of an individual working in the organisation is also known as microorganisational behaviour. The study of behaviour from the perspective of the whole organisation is also referred to as macro organisational behaviour. Research studies have shown people behave differently in groups than as individuals. cultural and other factors. . Understanding of group dynamics is essential to reduce conflicts and improve morale and productivity. The individual is a central feature of organisational behaviour. communication. Several factors influence the behaviour of groups such as group goals.) Behaviour at the Group Level .
OB will help the manager understand the basis of motivation and what he should do to motivate his subordinates. a better canteen etc. higher bonus. the basic issue may not be demand for more wages. OB is a discipline which enables a manager to motivate his subordinates towards higher productivity and better results. 3) The field of OB will be successful in maintaining cordial industrial relations. perception. In the dynamic mechanism of the flow of goods and services from producer to consumer. This can be due to any other reasons like the indifferent attitude of the boss towards the worker which in turn can lead to the worker loosing interest in his work gradually. Attitudes. He will be successful in his job when he can motivate his subordinates to work for better results. 5) OB helps in predicting the behaviour of individual and thus help the organization to be effective having good ‘people skills’ which includes the ability to understand one’s employees and to use this knowledge to make them work efficiently is a vital requirement if a person has to succeed as a manager. Hence the relations between the management and the employees are often strained for reasons which are personal but not technical. or if his productivity is readily declining. the awareness of the nature of individual and social process has an immediate or long term contribution to the success or the failure of the enterprise. Similarly. 2) A manager in a business establishment is concerned with getting things done through others. reluctance of the management to talk to union leaders may provoke them to give a strike. If an employee is slow in his work.IMPORTANCE OF OB 1) OB helps an individual to understand himself and others better. 4) OB helps in the field of marketing. This will improve interpersonal relations considerably. 6) Effective management means competent utilization of technical and financial resources. . leaderships. transactional analysis and conflicts can also be understood better with the study of OB. communication.
The people are given the assistance of machines. acquisitions & new ventures. demonstrating openness. 2.People make up the internal social system of the organization. building pride without devaluing others. part-time or contract employees). One has the authority & the others have a duty to obey him. Technology. methods & resources. 3. empowering some without exploiting others. People Structure Technology Environment 1. That system consists of individuals & group & large groups as well as small ones. developing the competence level of the employees.Forces Affecting Organizational Behaviour The four key forces that affects Organization Behaviour 1. Groups are dynamic in the sense that they form. really listening to the employees. 2. The workforce of an organization. some firms have developed a team-based structure. Technology allows people to do more & better work but it adds to the cost for examples. confidence.Technology provides the resources with which people work & affects e task that they perform. People.Increasing use of robots & automated control systems in assembly lines. 4. It defines the roles & relationship of people in an organization. the dramatic shift from a manufacturing to a service . however is very diverse in terms of their educational backgrounds. People work in the organization to achieve their objectives. Some companies have developed a sense of caring. other have a complex structure as a result of mergers. a goal attained by cutting middle management position). 3. Structure . The structure defines the authority-responsibility relationship. There are unofficial informal groups & official formal groups. Some organizations have hired contingent workforces (tempory. authentic compassion and vulnerability. talents & perspectives to their jobs.Structure defines the formal relationship and use of people in organization. change & disband. Some organization have resorted to a flatter structure (containing fewer levels. Different jobs are performed by different people in an organization & these people are related to each other in some structural way so as to coordinate their work effectively. The managements’ leadership practices have to be tuned to the diverse workforce.
People Environment ORGANISATION Environment Structure Environment Technology Disciplines contributing to OB OB is not a discipline in itself but it uses knowledge concepts & principles from the other relevant disciplines. geographical forces. affects working conditions & provides competition for resources & power. Any change in the environment creates demands on organizations. 4. An organisation is always a part of a larger system with elements like government. It influences the attitudes of people. Environment.Organisations are influenced by external environment which include socio-cultural. It draws concepts & principles from behavioural. economic. the family & other organizations. use of internet & improved quality of goods & services at acceptable prices.economy. politico-legal. advances in computer hardware & software capabilities. Any organization is influenced by its external environment. Citizens expect organisations to be socially responsible. All these technical advancements exerts an increased pressure on OB to maintain a delicate balance b/w technical & social systems. there are new products & competition for customers. All organisations operate within an internal & external environment. It .
vocational choice and satisfaction. Political sociology 2. perception. personnel selection & training. Family sociology 4. individual & group decision making. social class.The term “psychology comes from the Greek word “psyche” meaning soul or spirit. social mobility and prestige. communication. It also studies process of human behaviour like learning. History 3. Sociology 3. social. Psychology studies behaviour in various conditions. industrial. institutions. feeling & personality. customs. Its contributions to behavioural science are in the field of learning. 2. and change in organization group process.draws concepts & principles from behavioural sciences & the core disciplines of behavioural sciences are1. It studies social groups. the term behaviour. perception. the way in which people act towards one another. abnormal. Psychology. Psychology 2. Economics 2. status. Anthropology OB draws concepts from social sciences also1. There is also a separate branch of industrial psychology which deals with the application of psychological facts & principles to the problem concerning human relations in organization. thinking. Political Science Contributions of core disciplines of behavioural sciences to OB 1. childhood. old age etc. Sociology lf Law 5. memory.normal. It studies the shared human behaviour. Psychology is a science of behaviour. motivation. pattern of influence. Its subfields are1. Sociology of religion . adolescence. social behaviour. society. Educational sociology 6. sensation. Industrial sociology 3. Sociology – It uses the scientific method in accumulating knowledge about man’s social behaviour. legal. emotion.
It studies civilization. Anthropology is the sciences of man. Interpersonal Level : Human behaviour has to be understood in terms interpersonal interactions because human beings have a natural tendency to socialize. grp dynamics effect of industrialsation on the social behaviour etc. Human behaviour is a complex phenomenon and is affected by a number of factors like psychological. sentiments. speech and relationship among languages. group level and inter group level. cultural etc. social. 3. Anthropology. and methods of allocating scarce resources in organizations and the impact of economic policy on organizations. cohesion and interaction. 2) POLITICAL SCIENCE: It provides the basis for the conflicts in organisation. norms. effects of value systems. i) Individual Level: OB helps to understand why and how an individual behaves in a particular way. role structures social system theory. UNDERSTANDING HUMAN BEHAVIOUR OB helps to understand human behavior in the organisation – at the individual level. interpersonal level. biological factures of man and evolutionary pattern. OB helps to understand relationships in terms of superior ii) .“Anthropology” combines the Greek stem ‘anthropo” meaning man & “Logy” meaning science. Hence.To the managerial practice. OTHER DISCIPLINES 1) ECONOMICS: Economics contributes in understanding the decision process. power and authority structure and overall administrative process. OB integrates these factors in order to understand human behaviour. Anthropology contributes in understanding the cultural effects on organization behaviour. its contribution is in the field of bureaucracy. forms of cultures & their impact on individual & grps.
The Management decides what is the best action for the people. Likert’s Management system can be compared with a model of OB. communic” is mostly one.e downward. Managers see authority as the only means to get the things done. threats punishment & occasional rewards. This usually happens at lower strata of the organization. iii) Group Level: Individuals are times modified by group pressures. The organizational process is formal. iv) MODELS OF OB AUTOCRATIC MODEL. The autocratic model represents traditional thinking which is based on the economic concept of the man. peer relationships. There is little interaction s/w mangers & employees. An understanding of group behaviour is important organizational moral and productivity. transactional analysis etc. . communication pattern. Inter Group Level: Inter group relationships may be in the form cooperation or competition. role analysis. with changing times. & employees are expected to follow orders. avoidance of win-loose situation and focuses on total group objectives. i. So there is a high dependence on boss. Way. The model is largely based on the theory x assumptions of McGregor wherein the human beings are distasteful to work & try to avoid respeonsiblity. However. leadership and membership. OB helps to understand and achevie cooperative group relationships through interaction. A strict supervision is read to obtain a desirable performance from them. His system (exploitative authoritative) in which motivation depends on physical security & some use of desire for status & better performance is ensured through jear.subordinates relationships. Hence it becomes important to study groups and group dynamics with special reference to norms. goals.In an autocratic model. managerial orientation is towards power. But t is still a useful way to accomplish performance. This dependence is possible: employees live on the subsistence level. Particularly where the employees can be motivated by physiological needs. cohesion. its acceptability is to a limited extent. rotation of members among groups.
SUPPORTIVE MODEL – This model depends on managerial leadership rather than on the use of power or money. . which is the basic ingredient of his system 4(participative).In this model. Manager’s role is to help employees achieve their work rather than supervising them closely. the managerial orientation is towards the use of money to pay for employee benefits. Hence not a suitable model for matured employees. Hence. The organizational processes like communication. An organizational dependence reduces personal dependence on boss. The supportyive model is based on the assumptions that human beings move to the maturity level and they expect the organizational climate which supports this expectation. This model is specially effective with nations with affluence and complex technology because it caters to higher-order needs and provides intrinsic motivational factors. decision making. The employees are highly dependent on the organization. the focus is not on the economic resources of the organization but its human aspect. The aim of managers is to support employees in their achievement of results. These maintenance factor provide security but do not provide strong motivation the employees working under custodial model feel happy get adequate rewards & organization security but their performance level is not high as are not given any authority to decide what benefits / rewards they should get. This approach is quite similar to patrimonial approach where the Management decides what benefits are best suited for the employees. leacdership. The model is based on “Principles of Supportive relationships” of Likert. The focus is on employee participation in managerial decision making process. The supportive model is best suited when employees are self motivated.CUSTODIAL MODEL . The employees are able to satisfy their security needs (Maintenance factors in case of herzberg’s theory). interaction. control and influence help employees to fulfill their higher order needs like self-actualisation and esteem. It is similar to the assumptions of Mc Gregor’s Theory Y. The model depends on the economic resources of the organization & its ability to pay for the benefits.
enfused with integrity & trust and provides an opportunity to experience a growing sense of community among co-workers. As the need hierarchy differs for different people. Collegial and System Model) of OB are based on the assumption of the human characteristics and how they can work best. They are basically constructed around need hierarchy. Supportive. They look for a work that is ethical. hence are self motivated. Herein.It is more suitable for employees at managerial levels rather than on operative levels. esteem. The collegial model is conducive to self fulfillment & self-actualisation. It can be more beneficial with unprogrammed work requiring behavioural flexibility and intellectual environment and job freedom. COLLEGIAL MODEL – This model is an extension of supportive model. The role of a manager is to facilitate employee accomplishments through a variety of actions. they want more than a pay check & job security from their jobs. the same model cannot be used for all of them. the managers demonstrate caring and a compassionate attitude and are sensitive to the needs of a diverse workforce. the employees realize and recognize the mutuality of company-employee obligations in a system model. Custodial. “Responsibility” is expected out of the employees. autonomy. self-actualisation). To accomplish this. It is based on the team concept in which employee develops a high degree of understanding towards others and shares common goals. the employees needs are higher-order needs (social. SYSTEM MODEL – It is one of the emerging models of OB. The employees take a responsibility for their own goals and actions. Employees need a little direction and control from the management. The various models (Autocratic. Control is through self disciple from the team members. . status. Hence. there is a strong search for a higher meaning at work by the employees. In turn. There is a sense of psychological ownership for the organization and its products / services. The term “Collegial” refers to a body of people having a common purpose.
it leads to a higher turnover. . they often have to implement programs of Quality management and Process Reengineering. if properly managed. and revamping benefit programs to accommodate the different needs of different employees. Diversity. To work effectively with these people. one needs to manage a workforce which is different in needs. is to make themselves more accommodating to diverse groups of people by focusing on their different lifestyles. Workforce diversity means that organizations are heterogenous in terms of gender. Being a manager.The need hierarchy changes with the level of a person. workforce diversity focuses on differences among people with given countries. thus. how it has shaped them and how can the management style be adapted to suit their differences. Challenges and Opportunities for OB • Responding to Globalisation – Organisations are no longer limited by national borders. can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. aspirations and attitudes. more difficult communication and more interpersonal conflicts. level of his education. maturity level. one needs to understand their culture. If diversity is not properly managed. personality factors and the type of work environment. while at the same time not discriminating. Managing workforce diversity – While globalization focuses on differences between people from different countries. Quality Management – (i) Constant attainment of customer satisfaction through the continuous improvement of all organizational processes. race and ethnicity. Managers have to be capable enough to work with people across cultures. For this. family needs and workstyles. This involves providing diversity training. The challenge for organizations. • • Improving Quality and Productivity – The managers often confront challenges to improve their organization’s productivity and the quality of products and services they offer.
(iv) Empowerment of employees – Quality management involves the people in the improvement process. how rapidly it responds to complaints etc. the labour markets were tight as the world economy was robust. Teams are used in QM programs as empowerment vehicles for finding and solving problems. there was a huge increase in the number of women entering the workforce which was a new supply of talented and skilled workforce. there was an economic recession – lot of layoffs took place and hence the skilled workers were in plenty. • Improving people skills – Techniques should be developed to design motivating jobs. In the latter part of the 20th century. (iii) Accurate measurement – Quality Management uses statistical techniques to measure the performance variables and then compare them with the standards / benchmarks. • Responding to the labour shortage – Economic ups and downs are difficult to predict. to improve upon the listening skills and to create effective teams. Process Reengineering – helps managers to reconsider how work would be done and the organization restructured if they were starting over from the scratch. good wages and benefits are not the only means to get and keep skilled employees. expanded social security benefits and a healthy stock market.(ii) Improvement in the quality of everything that the organization does – how the organization handles deliveries. . In 2001. knowledgeable. accessible. the older workforce seem to be less interested to work which can be attributed to improved pension plans. The management should focus on creating a customer – responsive culture – a culture in which employees are friendly and courteous. During labour shortage. It was difficult to fill vacancies with skilled workers. prompt in responding to customer needs and willing to do what’s necessary to please the customer. In 1990s. Newer recruitment and retention strategies have to be developed with the help of OB. • Improving customer service – OB can contribute to improving an organisation’s by showing managers how employee attitudes and behavior are associated with customer satisfaction. Also. It is also predicted that there will be a labour shortage for atleast 10-15 years.
Example. spontaneity and unpredictability. interrupted occasionally by short periods of stability. • Coping with “Temporariness” – Unlike yesteryears.• Empowering people – There has been a complete change in the relationship between managers and the employees. Earlier. to live with flexibility. Work groups are also in a state of flux. work groups are temporary wherein members are from different departments and members keep changing and employee rotation is practiced to fill constantly changing work assignments. Organisations also continuously reorganize their divisions. Employees have started having a full control of their work. subcontract non-critical services and operations to other organisations and replace permanent employees with temporary workers. The managers and employees should know to cope with temporariness. This can be due to the following reasons – Creation of global organizations – Employees are required to work 24*7. employees were assigned to a specific work group which was permanent. By empowering employees. The workers need to update their knowledge and skills continually to perform new job requirements. The services of Dominos has brought an end to a number of pizza parlours in the city. There is also a concept of self-managed teams wherein workers operate largely without bosses. and employees know how to take responsibility for their work and make appropriate decisions. sell-off poor performing businesses. • Stimulating Innovation and Change – The organizations should foster innovation. The challenge for managers is to stimulate the employees’ creativity. . creating personal conflicts and stress. continuously improve their quality in order to beat competition. “managing” today includes long periods of ongoing change. Decision making now happens at the operating level. So there was security in working with the same people. But now. • Helping employees balance work / life conflicts – The line between the work and non work time of employees has become blurred. managers are learning how to give up control.
It is more like a tunnel vision in which people have narrow viewpoints as if they were looking through a tunnel. Also. they provide with protection mechanisms for employees who reveal internal unethical practices. managers should help in making their workplace and jobs such that it helps the employee deal with work / life conflicts.productive organizational outputs is lost. if a person is . For example. Should they follow orders with which they don’t personally agree? Should they uncover illegal activities taking place in the company? Managers and organizations are trying to tackle this problem by – o Writing and distributing codes of ethics to guide the employees. situations in which individuals are required to define right and wrong conduct. workshops. Limitations of OB • Behavioural bias – Behavioral bias gives a narrow viewpoint to the employees that emphasizes satisfying employee experiences while overlooking the broader system of the organization. Dual-career couples – as a result married couples have lesser time to fulfill commitments back home. Equally. similar training programs to try and improve ethical behavior. • Improving ethical behavior – Employees at times. It is wrong to assume that the objective of OB is simply to create a satisfied workforce without worrying about customer service and productivity. o Provision for an in-house advisor who can be contacted (anonymously) for assistance in dealing with an ethical issue.e. face ethical dilemmas i. Communication technology – People do their work from any place at any time. o Seminars. Longer hours put in by the employees. The concern for employees can be so greatly overdone that the original purpose of bringing people together. So.
continuously concerned with production outputs without regard for employee needs is misapplying OB. increases of a desirable practice produce declining returns. They lack self discipline and self respect. Behavioural bias can harm the employees as well as the organizations. For any situation. In OB. this law states that at some point. eventually zero returns. • Unethical manipulation of people – The knowledge and techniques of OB are at times used to manipulate people unethically as well as to help them develop their potential. People who lack respect for the basic dignity of the human being could use OB for selfish ends and use people in unethical ways. • The Law of Diminshing Returns – The Law of diminishing Returns is a limiting factor in OB as in Economics which produces negative results. They may find excuses for failure and avoid taking responsibility for progress.Too much of care can make the employees dependent and unproductive. Hence. . and then negative returns asmore increases are added. For example. When that point is exceeded. too much security may lead to less employee initiate and growth. such as recognition or participation. there is an optimum amount of a desirable practice. organizational effectiveness is achieved not by maximizing one human variable but by working all system variables together in a balanced way. there is a decline in returns.