Organisational behavior Human being is a social animal and there is a natural instinct that exists in him to work and

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.
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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.

team effort and productivity. The field of organisational behaviour is heavily influenced by several other behavioural sciences and social sciences. Its study helps in understanding the human behaviour in work organizations. Inter-disciplinary Approach. It helps in understanding and predicting the behaviour of individuals. Managers should be able to improve the results through their own and their employee’s actions. OB is an action – oriented and goal-directed discipline. research and application associated with a growing concern for people at the workplace. It provides a rational thinking about people and their behaviour. It provides a rational thinking about people. The prominent among these are psychology. It helps in demolishing ‘incorrect’ assumptions one may hold about behaviour. group behaviour and behaviour of the organisation itself. The major goals of organisational behaviour are to understand. Organisational behaviour draws a rich array of research from these disciplines. OB is a human tool for human benefit. A Field of Study. OB is a field of study backed by a body of theory. It includes creative thinking among the managers to solve human problems in organisations. Goal-Oriented.• To control – The final goal of OB is to control and develop some human activity at work. sociology and anthropology. What makes it a field in its own right is the attempt to integrate various aspects and levels of behaviour. Levels of Analysis. Managers also want to make an impact on employee behavior. explain and predict human behaviour in the organisational context so that it may be moulded into result-yielding situations. It is significant to note that because of the importance of human behaviour in organisations. It provides . Features of Organisational Behaviour The essential characteristics of organisational behaviour are as follows: (i) (ii) (iii) (iv) (v) (vi) An Integral Part of Management. Human Tool. OB is a part of general management and not the whole of management. skill development. OB has assumed the status of a distinct field of study. It represents behaviour approach to management. OB involves three levels of analysis of behaviour – individual behaviour.

It cannot provide specific answers to all organisational problems. OB is both a science as well as an art. but it is difficult to apply predictive models in all situations. OB seeks to fulfill employees’ need and aspirations. . It is possible to predict relationships between variables on a broad scale. both organisation and individuals can be benefited by each other. organisation behaviour is not an exact science like physics or chemistry. However. 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.generalisations that managers can use to anticipate the effects of certain actions on human behaviour. Every employee in the organisation wants to fulfill his needs through organisational activities. Thus. The systematic knowledge about human behaviour is a science. The application of behaviour knowledge and skills clearly leans towards being an art. The exact prediction of behavior of people in organisations is also not possible. (viii) Satisfaction of Employees’ Needs. (vii) Science and Art.

Behaviour at all three levels is interdependent and interrelated..Levels of Analysis of OB Organisational Behaviour focuses on three levels of analysis. viz. . and (iii) Organisation. 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.(i) Individual (ii) Group.

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 . Job-satisfaction Social.PSYCHOLOGY Individual Level: Personality. Perception Attitudes and Values Individual Decision-making Learning Motivation. Cultural and Other Factors Work Stress SOCIOLOGY Group Level : Groups and Teams Leadership Communication Conflict.

The co-operative relationships help the organisation in achieving its objectives. motivation. communication. social. leadership.) Behaviour at the Organisation Level . etc.1. they may resist change. . attitudes.Behaviour pattern of individuals is also influenced by the groups to which they belong. cohesiveness.An organisation is a system composed of several interdependent individuals and groups.Organisations are made up of their individual members. Research studies have shown people behave differently in groups than as individuals. Understanding the effect of group relationships is important for managers in today’s organisations. Stress caused by the activities of individuals and groups has to be managed at the organisational . in response to expectations of the organisation. Inter group relationships may be in the form of cooperations or competition. while they may fight for change in certain situations. whether acting in isolation or as part of a group. 2. 3. The study of behaviour from the perspective of the whole organisation is also referred to as macro organisational behaviour. norms. The individual is a central feature of organisational behaviour. group and individual levels. They particapte in shaping the culture of the organisation and also in organisation development. Understanding of group dynamics is essential to reduce conflicts and improve morale and productivity.) Behaviour at the Individual Level . cultural and other factors. learning. or as a result of influence of the external environment.) Behaviour at the Group Level . The behaviour of individuals is a complex phenomenon and is affected by a large number of factors such as personality. The study of behaviour of an individual working in the organisation is also known as microorganisational behaviour. Several factors influence the behaviour of groups such as group goals. perception. Individuals and groups operate within the structure of formal organisation. At times.

OB will help the manager understand the basis of motivation and what he should do to motivate his subordinates. 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. 2) A manager in a business establishment is concerned with getting things done through others. 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. In the dynamic mechanism of the flow of goods and services from producer to consumer. OB is a discipline which enables a manager to motivate his subordinates towards higher productivity and better results. Similarly. perception. Attitudes. 6) Effective management means competent utilization of technical and financial resources. or if his productivity is readily declining. transactional analysis and conflicts can also be understood better with the study of OB. 4) OB helps in the field of marketing. This will improve interpersonal relations considerably. If an employee is slow in his work. higher bonus. . communication. 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. the basic issue may not be demand for more wages. a better canteen etc. reluctance of the management to talk to union leaders may provoke them to give a strike. 3) The field of OB will be successful in maintaining cordial industrial relations. leaderships. He will be successful in his job when he can motivate his subordinates to work for better results. Hence the relations between the management and the employees are often strained for reasons which are personal but not technical.IMPORTANCE OF OB 1) OB helps an individual to understand himself and others better.

The people are given the assistance of machines. People. really listening to the employees. other have a complex structure as a result of mergers. Some organization have resorted to a flatter structure (containing fewer levels.Technology provides the resources with which people work & affects e task that they perform. however is very diverse in terms of their educational backgrounds. part-time or contract employees). a goal attained by cutting middle management position). Structure . talents & perspectives to their jobs.Structure defines the formal relationship and use of people in organization. methods & resources. 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. empowering some without exploiting others. acquisitions & new ventures. 2. The managements’ leadership practices have to be tuned to the diverse workforce. Some organizations have hired contingent workforces (tempory. Some companies have developed a sense of caring. That system consists of individuals & group & large groups as well as small ones.Increasing use of robots & automated control systems in assembly lines. demonstrating openness. developing the competence level of the employees. change & disband. Technology allows people to do more & better work but it adds to the cost for examples. some firms have developed a team-based structure. 4. Technology. People work in the organization to achieve their objectives. 3. There are unofficial informal groups & official formal groups.People make up the internal social system of the organization. 2. The structure defines the authority-responsibility relationship. authentic compassion and vulnerability. Groups are dynamic in the sense that they form. 3. confidence. One has the authority & the others have a duty to obey him. It defines the roles & relationship of people in an organization.Forces Affecting Organizational Behaviour The four key forces that affects Organization Behaviour 1. building pride without devaluing others. People Structure Technology Environment 1. The workforce of an organization. the dramatic shift from a manufacturing to a service .

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. Any organization is influenced by its external environment. advances in computer hardware & software capabilities. geographical forces.Organisations are influenced by external environment which include socio-cultural. It draws concepts & principles from behavioural. 4. the family & other organizations. All organisations operate within an internal & external environment. politico-legal. It . All these technical advancements exerts an increased pressure on OB to maintain a delicate balance b/w technical & social systems. It influences the attitudes of people. affects working conditions & provides competition for resources & power.economy. use of internet & improved quality of goods & services at acceptable prices. Environment. Any change in the environment creates demands on organizations. there are new products & competition for customers. economic. Citizens expect organisations to be socially responsible. An organisation is always a part of a larger system with elements like government.

feeling & personality. abnormal. social class. communication.draws concepts & principles from behavioural sciences & the core disciplines of behavioural sciences are1. perception. It also studies process of human behaviour like learning. pattern of influence. Its contributions to behavioural science are in the field of learning. Sociology – It uses the scientific method in accumulating knowledge about man’s social behaviour. childhood. sensation. Psychology studies behaviour in various conditions. status. Psychology. 2. perception. society. Its subfields are1. and change in organization group process. personnel selection & training. Family sociology 4.normal. Educational sociology 6. adolescence. 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. Sociology of religion . motivation. social. individual & group decision making. industrial. customs. It studies the shared human behaviour. thinking. emotion. the term behaviour. Anthropology OB draws concepts from social sciences also1. Economics 2. memory. It studies social groups.The term “psychology comes from the Greek word “psyche” meaning soul or spirit. Industrial sociology 3. Psychology is a science of behaviour. vocational choice and satisfaction. social mobility and prestige. Political sociology 2. Sociology 3. social behaviour. History 3. Psychology 2. institutions. Sociology lf Law 5. legal. old age etc. Political Science Contributions of core disciplines of behavioural sciences to OB 1. the way in which people act towards one another.

grp dynamics effect of industrialsation on the social behaviour etc. social. i) Individual Level: OB helps to understand why and how an individual behaves in a particular way. Hence. 2) POLITICAL SCIENCE: It provides the basis for the conflicts in organisation. Human behaviour is a complex phenomenon and is affected by a number of factors like psychological. UNDERSTANDING HUMAN BEHAVIOUR OB helps to understand human behavior in the organisation – at the individual level. cohesion and interaction.To the managerial practice. role structures social system theory. norms. and methods of allocating scarce resources in organizations and the impact of economic policy on organizations. 3. biological factures of man and evolutionary pattern. cultural etc. effects of value systems. power and authority structure and overall administrative process. group level and inter group level.“Anthropology” combines the Greek stem ‘anthropo” meaning man & “Logy” meaning science. It studies civilization. OB integrates these factors in order to understand human behaviour. Anthropology contributes in understanding the cultural effects on organization behaviour. OB helps to understand relationships in terms of superior ii) . Anthropology. its contribution is in the field of bureaucracy. Interpersonal Level : Human behaviour has to be understood in terms interpersonal interactions because human beings have a natural tendency to socialize. forms of cultures & their impact on individual & grps. speech and relationship among languages. interpersonal level. sentiments. Anthropology is the sciences of man. OTHER DISCIPLINES 1) ECONOMICS: Economics contributes in understanding the decision process.

transactional analysis etc.In an autocratic model. There is little interaction s/w mangers & employees. Way. cohesion. This dependence is possible: employees live on the subsistence level. Particularly where the employees can be motivated by physiological needs. leadership and membership. threats punishment & occasional rewards. avoidance of win-loose situation and focuses on total group objectives.subordinates relationships. OB helps to understand and achevie cooperative group relationships through interaction. However. The Management decides what is the best action for the people. Likert’s Management system can be compared with a model of OB. & employees are expected to follow orders. Hence it becomes important to study groups and group dynamics with special reference to norms. iii) Group Level: Individuals are times modified by group pressures.e downward. Managers see authority as the only means to get the things done. communication pattern. A strict supervision is read to obtain a desirable performance from them. communic” is mostly one. So there is a high dependence on boss. its acceptability is to a limited extent. This usually happens at lower strata of the organization. managerial orientation is towards power. Inter Group Level: Inter group relationships may be in the form cooperation or competition. The organizational process is formal. i. iv) MODELS OF OB AUTOCRATIC MODEL. An understanding of group behaviour is important organizational moral and productivity. rotation of members among groups. . role analysis. But t is still a useful way to accomplish performance. goals. peer relationships. with changing times. His system (exploitative authoritative) in which motivation depends on physical security & some use of desire for status & better performance is ensured through jear. The model is largely based on the theory x assumptions of McGregor wherein the human beings are distasteful to work & try to avoid respeonsiblity. The autocratic model represents traditional thinking which is based on the economic concept of the man.

In this model. It is similar to the assumptions of Mc Gregor’s Theory Y. . The organizational processes like communication. Manager’s role is to help employees achieve their work rather than supervising them closely. interaction. The supportive model is best suited when employees are self motivated. 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. The focus is on employee participation in managerial decision making process. decision making. This model is specially effective with nations with affluence and complex technology because it caters to higher-order needs and provides intrinsic motivational factors. This approach is quite similar to patrimonial approach where the Management decides what benefits are best suited for the employees.CUSTODIAL MODEL . SUPPORTIVE MODEL – This model depends on managerial leadership rather than on the use of power or money. An organizational dependence reduces personal dependence on boss. the focus is not on the economic resources of the organization but its human aspect. The employees are able to satisfy their security needs (Maintenance factors in case of herzberg’s theory). leacdership. the managerial orientation is towards the use of money to pay for employee benefits. control and influence help employees to fulfill their higher order needs like self-actualisation and esteem. The aim of managers is to support employees in their achievement of results. Hence. 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. The model depends on the economic resources of the organization & its ability to pay for the benefits. which is the basic ingredient of his system 4(participative). Hence not a suitable model for matured employees. The model is based on “Principles of Supportive relationships” of Likert. The employees are highly dependent on the organization.

Supportive. the same model cannot be used for all of them. Herein. there is a strong search for a higher meaning at work by the employees. the managers demonstrate caring and a compassionate attitude and are sensitive to the needs of a diverse workforce. The employees take a responsibility for their own goals and actions. Collegial and System Model) of OB are based on the assumption of the human characteristics and how they can work best. 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. autonomy. status. They are basically constructed around need hierarchy. Control is through self disciple from the team members. esteem. The various models (Autocratic. . It is based on the team concept in which employee develops a high degree of understanding towards others and shares common goals. they want more than a pay check & job security from their jobs. It can be more beneficial with unprogrammed work requiring behavioural flexibility and intellectual environment and job freedom. Employees need a little direction and control from the management. the employees needs are higher-order needs (social. hence are self motivated.It is more suitable for employees at managerial levels rather than on operative levels. Hence. As the need hierarchy differs for different people. In turn. “Responsibility” is expected out of the employees. The role of a manager is to facilitate employee accomplishments through a variety of actions. To accomplish this. COLLEGIAL MODEL – This model is an extension of supportive model. Custodial. self-actualisation). SYSTEM MODEL – It is one of the emerging models of OB. They look for a work that is ethical. the employees realize and recognize the mutuality of company-employee obligations in a system model. enfused with integrity & trust and provides an opportunity to experience a growing sense of community among co-workers. The collegial model is conducive to self fulfillment & self-actualisation.

family needs and workstyles. thus. more difficult communication and more interpersonal conflicts. Challenges and Opportunities for OB • Responding to Globalisation – Organisations are no longer limited by national borders. one needs to manage a workforce which is different in needs. Workforce diversity means that organizations are heterogenous in terms of gender. can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. while at the same time not discriminating. Managers have to be capable enough to work with people across cultures. If diversity is not properly managed. This involves providing diversity training. Quality Management – (i) Constant attainment of customer satisfaction through the continuous improvement of all organizational processes. For this. Being a manager. how it has shaped them and how can the management style be adapted to suit their differences. aspirations and attitudes. workforce diversity focuses on differences among people with given countries. level of his education. personality factors and the type of work environment. it leads to a higher turnover. maturity level. they often have to implement programs of Quality management and Process Reengineering. one needs to understand their culture. To work effectively with these people. if properly managed. and revamping benefit programs to accommodate the different needs of different employees. Diversity. • • Improving Quality and Productivity – The managers often confront challenges to improve their organization’s productivity and the quality of products and services they offer. The challenge for organizations.The need hierarchy changes with the level of a person. race and ethnicity. is to make themselves more accommodating to diverse groups of people by focusing on their different lifestyles. . Managing workforce diversity – While globalization focuses on differences between people from different countries.

knowledgeable. It was difficult to fill vacancies with skilled workers. • Responding to the labour shortage – Economic ups and downs are difficult to predict. the labour markets were tight as the world economy was robust. During labour shortage. to improve upon the listening skills and to create effective teams. • Improving customer service – OB can contribute to improving an organisation’s by showing managers how employee attitudes and behavior are associated with customer satisfaction. Newer recruitment and retention strategies have to be developed with the help of OB. (iii) Accurate measurement – Quality Management uses statistical techniques to measure the performance variables and then compare them with the standards / benchmarks. (iv) Empowerment of employees – Quality management involves the people in the improvement process. there was an economic recession – lot of layoffs took place and hence the skilled workers were in plenty. Process Reengineering – helps managers to reconsider how work would be done and the organization restructured if they were starting over from the scratch. The management should focus on creating a customer – responsive culture – a culture in which employees are friendly and courteous. In 2001.(ii) Improvement in the quality of everything that the organization does – how the organization handles deliveries. In the latter part of the 20th century. expanded social security benefits and a healthy stock market. . how rapidly it responds to complaints etc. accessible. It is also predicted that there will be a labour shortage for atleast 10-15 years. Teams are used in QM programs as empowerment vehicles for finding and solving problems. the older workforce seem to be less interested to work which can be attributed to improved pension plans. Also. In 1990s. prompt in responding to customer needs and willing to do what’s necessary to please the customer. there was a huge increase in the number of women entering the workforce which was a new supply of talented and skilled workforce. • Improving people skills – Techniques should be developed to design motivating jobs. good wages and benefits are not the only means to get and keep skilled employees.

Employees have started having a full control of their work. This can be due to the following reasons –  Creation of global organizations – Employees are required to work 24*7. The workers need to update their knowledge and skills continually to perform new job requirements. managers are learning how to give up control. to live with flexibility. The services of Dominos has brought an end to a number of pizza parlours in the city.• Empowering people – There has been a complete change in the relationship between managers and the employees. creating personal conflicts and stress. So there was security in working with the same people. • Helping employees balance work / life conflicts – The line between the work and non work time of employees has become blurred. • Stimulating Innovation and Change – The organizations should foster innovation. sell-off poor performing businesses. Example. But now. There is also a concept of self-managed teams wherein workers operate largely without bosses. “managing” today includes long periods of ongoing change. The managers and employees should know to cope with temporariness. Organisations also continuously reorganize their divisions. interrupted occasionally by short periods of stability. By empowering employees. • Coping with “Temporariness” – Unlike yesteryears. employees were assigned to a specific work group which was permanent. subcontract non-critical services and operations to other organisations and replace permanent employees with temporary workers. Decision making now happens at the operating level. Earlier. . continuously improve their quality in order to beat competition. spontaneity and unpredictability. The challenge for managers is to stimulate the employees’ creativity. 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. Work groups are also in a state of flux. and employees know how to take responsibility for their work and make appropriate decisions.

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. face ethical dilemmas i. So. It is wrong to assume that the objective of OB is simply to create a satisfied workforce without worrying about customer service and productivity. workshops. • Improving ethical behavior – Employees at times.  Dual-career couples – as a result married couples have lesser time to fulfill commitments back home. The concern for employees can be so greatly overdone that the original purpose of bringing people together. managers should help in making their workplace and jobs such that it helps the employee deal with work / life conflicts. 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. It is more like a tunnel vision in which people have narrow viewpoints as if they were looking through a tunnel. Communication technology – People do their work from any place at any time. For example. similar training programs to try and improve ethical behavior. if a person is . they provide with protection mechanisms for employees who reveal internal unethical practices.e.productive organizational outputs is lost. Equally. Also. o Seminars.  Longer hours put in by the employees. situations in which individuals are required to define right and wrong conduct. o Provision for an in-house advisor who can be contacted (anonymously) for assistance in dealing with an ethical issue.

When that point is exceeded. They may find excuses for failure and avoid taking responsibility for progress. increases of a desirable practice produce declining returns. too much security may lead to less employee initiate and growth. eventually zero returns.Too much of care can make the employees dependent and unproductive. organizational effectiveness is achieved not by maximizing one human variable but by working all system variables together in a balanced way. and then negative returns asmore increases are added.continuously concerned with production outputs without regard for employee needs is misapplying OB. They lack self discipline and self respect. • 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. . this law states that at some point. For any situation. People who lack respect for the basic dignity of the human being could use OB for selfish ends and use people in unethical ways. there is a decline in returns. In OB. there is an optimum amount of a desirable practice. For example. • The Law of Diminshing Returns – The Law of diminishing Returns is a limiting factor in OB as in Economics which produces negative results. Behavioural bias can harm the employees as well as the organizations. Hence. such as recognition or participation.

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