Organisational Behaviour Final

Management of Organization Behavior
CONCEPT OF MANAGEMENT A precise definition of management is not so simple because the term management is used in a variety of ways. Being a new discipline, it has drawn concepts and principles from a number of disciplines such as economics, sociology, psychology, anthropology, statistics, and so on The result is that each group of contributors has treated management differently. For example economists have treated management as a factor of production; sociologists have treated Its a class or group of persons; practitioners have treated it as a process comprising different activities. Naturally, all these divergent groups view the nature and scope of management from their own point of view. Thus, taking all these points of views together. It becomes difficult to define management in a comprehensive way. In the present context, the term management is; used in three alternative ways: 1. Management as a discipline, 2. Management as a group of people, and 3. Management as a process. Management as a Discipline Discipline refers to a field of study having well-defined concepts and principles. When we refer to management as a discipline, we Include In it the various relevant concepts and principles the knowledge of which aids in managing. From this point of view, management can be treated either as an art or science, the two basic and broad disciplines. However, since management prescribes various principles and how these principles can be applied in managing an organisation, it has the orientation of both, science and art, a phenomenon which will be discussed later in this chapter. Management as a Group of People Sometimes, we refer to management as a group of people in which we include all those personnel who perform managerial functions in organisations. For example, when we talk about relationship between management and labour in an organisation, we refer to two distinct classes or groups of personnel in the organisation. In the first category, we include all those persons who are responsible for managerial functions and in the second category, we include non-managerial personnel. This approach of using management is quite popular; however, it does not serve our purpose of defining the term management
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Management as a Process In studying management discipline, we generally refer to management as a process. A process can simply be defined as a systematic method of handling activities However, the management process can be treated as a complex one which can be referred to as an identifiable flow of information through Interrelated stages of analysis directed towards the achievement of an objective or set of objectives. It is a concept of dynamic rather than static existence in which events and relationships must be seen as dynamic, continuous, and flexible, and as such, must be considered as a whole. Thus, management as a process includes various activities and sub activities. However, what these activities are must be defined precisely to understand the exact nature and scope of management. In a simple way, we can define management as what managers do
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CONCEPT OF ORGANIZATION BEHAVIOR Organizations are collections of interacting and inter related human and non-human resources working toward a common goal or set of goals within the framework of structured relationships. Organizational behavior is concerned with all aspects of how organizations influence the behavior of individuals and how individuals in turn influence organizations. Organizational behavior is an inter-disciplinary field that draws freely from a number of the behavioral sciences, including anthropology, psychology, sociology, and many others. The unique mission of organizational behavior is to apply the concepts of behavioral sciences to the pressing problems of management, and, more generally, to administrative theory and practice. In approaching the problems of organizational behavior, there are a number of available strategies we can utilize. Historically, the study of management and organizations took a closed-systems view. The preoccupation of this view is to maximize the efficiency of internal operations. In doing so, the uncertainty of uncontrollable and external environmental factors often were assumed away or denied. This traditional closed-systems view of organizations made substantial contributions to the theory of organizational design. At the same time, for analytical reasons, organizations came to be viewed as precise and complex machines. In this framework, human beings were reduced to components of the organizational machine. More recently, the study of organizations and the behavior of human beings within them have assumed a more opensystems perspective. Factors such as human sentiments and attitudes, as well as technological and sociological forces originating outside the organizations, have assumed greater importance in analyzing organizational behavior. This book adopts the open perspective, because this is a contemporary and more meaningful way to view organizations and human behavior within them. After some preliminary issues, we shall examine the individual. We shall move from the individual to the small group, to the complex organization, and finally to some environmental factors important to the process of organizational change Organizational behavior is not a discipline in the usual sense of the term, but is rather an eclectic field of study involving the integration of the behavioral sciences (e.g., psychology, sociology, anthropology, etc.) into the study of people's behavior within organizations. While those who conduct research in organizational behavior often come from business schools, they may have their roots in diverse areas such as political
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science, sociology, psychology, or anthropology. It is the integration of relevant knowledge of these areas that has given us a new field of study-organisational behaviour (frequently abbreviated as OB). Aldag and Brief have defined OB as follows: "Organisational behaviour is a branch of the social sciences that seeks to build theories that can be applied to predicting, understanding, and controlling behaviour in work organisations." Callahan et al. have defined OB as a subset of management activities when they state that, "Organisational behaviour is a subset of management activities concerned with under-standing, predicting, and influencing individual behaviour in organisational settings According to both these definitions, the basic ingredients of OB are the same, that is, understanding, predicting, and controlling human behaviour though both treat OB as a field of study in different formsa branch of the social science or a subset of management activities. We can define OB as follows: Organisational behaviour is the study and application of knowledge about human behavior related to other elements of the organisation such as structure, technology and social system. Thus, OB is primarily concerned with that aspect of human behaviour which is relevant for organisational performance. It studies human behaviour at individual level, group level, and organisational level. It applies the knowledge gained about individuals, groups, and the effect of organisation structure on behaviour towards the end of making organisations work more effectively.
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MANAGEMENT PRACTICES IN ORGANIZATION BEHAVIOR Many of the behavioural problems in organisations can be solved by acquiring knowledge of OB and applying this knowledge properly. The basic objective of studying OB is to acquire knowledge about how people behave in the organisation and how this behaviour can be directed towards the achievement of organisational objectives. For tills purpose, various theories have been evolved. However, a common statement made by managers Is, "that is fine In theory, but in practice. It does not work." While this is true for the managers at the global level, Indian managers have specific reasons to be dissatisfied with the theories developed in industrially advanced countries and are followed in Indian context. These managers may be correct in saying so as the theories they have applied might not have worked. This state of affairs Is unfortunate since the real world is the ultimate laboratory for the social scientists. If bad theories are created that do not work the gap between theory and practice Is widened. Therefore, it is important to identify the reasons why theories do not work in practice. Why Theories Fail? It is true that many theories have failed to produce desired results in practice; therefore, attempts are on to evolve new theories. However, the reasons for the failure of theories are more important to analyze rather than merely counting the occasions of their failures. If these reasons are understood, managers can Improve their skills in choosing and implementing theories. Some of the major reasons for failure of the theories are as follows: 1. Lack of Proper Understanding of Theory. In many cases, the individual trying a theory does not fully understand it. Lack of complete understanding can cause the Individual to apply something other than the theory in question, or to apply the theory in an inappropriate situation, that is, using the correct solution for the wrong problem. For example, often managers commit mistakes in applying job enrichment concept enriching the job to make it more motivating; they may overload it, or may enrich a job that is currently grossly underpaid In relation to market conditions. 2. No Consideration given for Systems Effects. One of the most common experiences of managers who try new theory is that while they may solve the original problem, occasionally, new problems are created as a result of the action, and the managers end up thinking they were
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better off before. This happens because theoretical models tend to neglect the systems effect of introducing change into an organisation. For example, a manager may enhance the status of a group to enhance its productivity. It may work positively for the group but may create problems for the other groups whose status gets reduced in relation to the target group. Lack of Specific Applicability of a Theory. Generally, theories are developed using scientific methods on relatively large number of observations. Consequently, theories developed tend to apply to individuals collectively, but not to any one specific person. A manager may attempt to apply a prescriptive statement from a general theory to a specific situation that does not fit the general requirements of the theory. For example, the theory states that money is not a motivator in general term. However, It may be a motivator for an individual because of his specific background. Lack of Universal Applicability. A theory, particularly in management and organisational behaviour which are affected by characteristics of human beings which may differ from place to place, lacks universal applicability. Thus, a theory developed in one situation may not be applicable in another situation because variables in two situations may be different. This aspect Is important for Indian managers when they apply the theories developed abroad for managing Indian organisations. Wrong Theory. Sometimes, wrong theory may be created. This may happen because of several reasons: (i) the environmental conditions under which the theory was created have changed; (ii) incorrect conclusions have been drawn from right data; (iii) correct conclusions have been drawn from poor data; and (iv) researchers have overlooked other significant influences that affect the results. In such a situation, the theory may not work at all. Value of Theory: If we analyze the reasons for failure of theories, we may find that reasons are two-fold: the application of theory is incorrect because of lack of proper understanding, or the theory itself may be faulty and lacks applicability. Therefore, the practitioners have to take into consideration the reasons for failure of the theory and should not ignore the reality by commenting 'it does not work In practice'. Fortunately, lot of concepts and theories developed in the field of organisational behaviour do have applicability and their understanding is important for successful management practices. Organisational behaviour emphasizes that human factor is not merely an instrument in the organisation but the very core of the organisational existence. From
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this point of view, organisational behaviour provides opportunity for analyzing human behaviour for understanding and prescribing means for shaping human behaviour for desired results. In particular, organisational behaviour contributes to understand human behaviour, to control and direct it, and to adapt the organisation to given situations. 7. Value of Experience: Theories are important for increasing managerial effectiveness provided these are utilised properly. Proper utilization of a theory requires that the practitioner has both knowledge of the theory as well as that of the situation in which the theory is to be applied. Knowledge of situations comes from experience. As mentioned earlier, organisational behaviour is both science and art; therefore, combination of both makes the organisational process effective. Its science aspect suggests that theoretical knowledge is necessary: its art aspect suggests that perfection can be achieved through practice. Therefore, the use of theory and practice is not an 'either or' situation; it is a blend of both, experience contributes to better way of doing the things because the practitioner mayweed out the undesirable practices over the period of time and may retain the desirable practices. Therefore, the knowledge of the theories makes the experience meaningful. When the experience is unscientific, we must be cautious of its meaning and value. It is very old saying that ten year's experience may only be one year's experience ten times. Experience is a valuable asset if used wisely. Experience allows the comprehension of the theoretical concepts much more easily. Experienced managers are certainly more adept in the application of knowledge but the magnitude of adeptness will depend upon their ability to learn from their experiences. In doing so, a practitioner is just like an academician. Each performs experiments and draws conclusions from their experience. The major difference lies In the methods and techniques to evaluate the experience. The academician prefers to call the experience as experiment or research and tries to make generalisations based on several such experiments. Thus, in the final analysis, theory and experience are complementary to each other. Just as all experience with no theoretical background is undesirable, the 'egghead' approach to organisational behaviour, that is, only theory and no practical experience is equally inappropriate.
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FOUNDATION OF ORGANIZATION BEHAVIOR Whilst the first four concepts centre on people, the next two are concerned with organizations. The last one is a combination of the first five assumptions. A brief explanation of each assumption follows. 1. Individual differences: people have much in common (they become excited by the arrival of a new child in the family or they are grieved by the loss of a loved one), but each person in the world is also individually different. Each one is different from the others in several ways. Whether it is intelligence, physique, personality, diction, or any such trait, one can find striking differences. The idea of difference comes originally from psychology. From the day of birth, each person is unique and individual experiences after birth make people even more different. Individual differences mean that management can cause the greatest motivation among employees by treating them differently. If it were not for individual differences, some standard, across-the-board way of dealing with all the employees could be adopted and minimum judgment would be required thereafter. It is because of individual differences that OB begins with the individual. Only a person can take responsibility and make decisions, a group, by nature, cannot do so. A group is powerless until individuals therein act 2. A whole person: When an individual is appointed, his/her skill alone is not hired; his/her social background, likes and dislikes, pride and prejudices are also hired. A person's family life cannot be separated from his or her work life. It is for this reason that managers should endeavor to make the workplace a home away from home. They not only strive hard to develop a better employee out of a worker, but also a better person in terms of growth and fulfillment. 3. Caused behavior: the behaviour of the employee is caused and not random. This behavior is directed towards someone that the employee believes, rightly or wrongly, is in his/her interest. Thus, when a worker comes late to his or her work, pelts stones at a running bus, or abuses the supervisor, there is a cause behind it. The manager must realize this basic principle and correct this behaviour and tackle the issue at its root. 4. Human dignity: This concept is of a different order from the other three just discussed because it is more an ethical philosophy than a scientific conclusion. It confirms that people are to be treated differently from other factors of production because they are of a higher order in the universe. It recognizes that people want to be treated with respect and dignity and should be
treated. Every job, however simple, entitles the people who do it to proper respect and recognition of their unique aspirations and abilities. The concept of human dignity rejects the old idea of using employees as economic tools. Ethical philosophy is reflected in the conscience of humankind, confirmed by the experience of people in all ages. It has to do with the consequences of our acts to ourselves and to others. It recognizes that life has an overall purpose and accepts the inner integrity of each individual. Since organizational behaviour always involves people, ethical philosophy is involved in one way or the other in each action. Human decisions cannot and should not be made devoid of values. 5. Organizations are social systems: From sociology we learn that organizations are social systems; consequently activities therein are governed by social as well as psychological laws. Just as people have psychological needs, they also have social roles' and status. Their behaviour is influenced by their group as well as by their individual drives. In fact, two types of social systems exist side by side in organizations. One is the formal system and the other is the informal social system. The existence of a social system implies that the organizational environment is one of dynamic change, rather than a static set of relations as revealed in an organization chart. All parts of the system are interdependent and are subject to influence by any other part. 6. Mutuality of interest: Mutual interest is represented by the statement that 'organizations need people and people also need organizations. Organizations have human purpose. They are formed and maintained on the basis of some mutuality of interest among their participants. If mutuality is lacking, it makes no sense to try to assemble a group and develop cooperation, because there is no common base on which to build. Mutual interest provides a super ordinate goal that unites the variety of needs that people bring to organizations. The result is that people are encouraged to attack organizational problems rather than each other. 7. Holistic concept: When the above six fundamental concepts of OB are placed together, a holistic concept emerges. This concept interprets people-organization relationships in terms of the whole person, whole group, whole organization, and the whole social system. It takes an allencompassing view of people in organizations in an effort to understand as many of the possible factors that influence their behaviour. Issues are analyzed in terms of the situation affecting them rather than in terms of an isolated event or problem.
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NATURE OF ORGANISATIONAL BEHAVIOUR Organizational behavior is emerging as a separate field of study. Therefore, its nature is likely to change over the period of time. However, its present nature can be identified as follows: 1. A Field of Study and not a Discipline. Organizational behavior can be treated as a distinct field of study and not a discipline or even emerging discipline. A discipline is an accepted science with a theoretical foundation that serves as the basis for research and analysis. Organizational behavior, because of its broad base, recent emergence, and interdisciplinary orientation, is not accepted as science. We have just begun to synthesize principles, concepts, and processes in this field of enquiry. Therefore, it is reasonable to call it a field of study rather than a discipline. 2. Interdisciplinary Approach. OB is basically an interdisciplinary approach. An interdisciplinary approach integrates the relevant knowledge drawn from different disciplines for some specific purpose. As discussed later, OB draws heavily from psychology, sociology and anthropology. Besides, it also takes relevant things from economics, political science, law, and history. These disciplines exist separately, but OB integrates the relevant contents of these disciplines to make them applicable for organizational analysis. Thus, OB is nothing apart from the integration of knowledge from different disciplines. 3. An Applied Science. The basic objective of OB is to make application of various researches to solve the organizational problems particularly related to human behavior aspect. Unlike the pure science which concentrates on fundamental researches, OB concentrates on applied researches. Though many of the researches may be carried on in laboratory situations and controlled conditions, they are meant for general application in organizational analysis. Thus, organizational behavior is both science as well as art. 4. Normative and Value Centered. OB is a normative science. A normative science, unlike the positive science which suggests only causeeffect relationships, prescribes how the various findings of the researches can be applied to get organizational results which are acceptable to the society. Thus, what is acceptable by the society or Individuals engaged in an organization is a matter of value to the people concerned. This aspect cannot be explained by positive science. The normative nature of OB is underscored by the proliferation of theories about management styles, ranging from 'how-to' prescriptions to polemics about change in basic practices.
5. Humanistic and Optimistic. OB focuses the attention on people from humanistic point of view. It is based on the belief that needs and motivation of people are of high concern. There is an acceptance of the value of the individual as a thinking, feeling organism, and without these considerations, the organization may not be fully operational as a social entity. Further, there is optimism about the innate potential of man to be independent, creative, productive, and capable of contributing positively to the objectives of the organization. The man will actualize this potential if proper conditions and environments are given to him. 6. Oriented towards Organizational Objective. OB, being an applied science and emphasizing human aspect of the organization, is oriented towards organizational objectives. Though an organization may have several objectives and sometimes conflicting with individual objectives, it should not be understood that OB only emphasizes the achievement of individual objectives at the cost of organizational objectives. In fact, OB tries to integrate both types of objectives so that these are achieved simultaneously. For this purpose, it suggests various behavioral approaches. 7. A Total Systems Approach. OB is a total systems approach wherein the living system of an organization is viewed as an enlargement of a man. The systems approach is an integrative approach which takes into account all the variables affecting organizational functioning. In fact, the systems thinking in organizational analysis has been developed by behavioral scientists. Behavioral science, while analyzing organizational behavior, does not take human being In isolation but as the product of sociopsychological factors. Thus, his behavior can be analyzed keeping in view his psychological framework, interpersonal orientation, group Influence, and social and cultural factors. Thus, man's nature is quite complex, and OB by applying systems approach tries to find solution of this complexity.
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FEATURES OF ORGANIZATION BEHAVIOR Organizational Behavior is the study and use of information relating to the behavior of the people at work. Organizational behavior concentrates on the following: 1. Individual Individual employees are the focal points of an organisation. They work in the organisation to satisfy their needs, egos and experience. Each employee has its own physical, psychological and social needs for which he uses his own traits and experiences. There may be a number of psychosocial and economic factors human behavior at work. The study, research and use of these factors help management to mould and modify the behavior of employees for achieving organisational objectives through increasing their efficiency and effectiveness. 2. Group Individual behaviour and group behavior are distinctively observed in an organisation. Group performance is more effective than individual performance. This synergy is observed in-group behaviour. The group is a separate entity that needs to be studied and researched. It is an accepted fact that a group sets goals, behaves, thinks and acts. Groups have synergy and synthesis as compared to the energy and mentality of an individual. If group power is channelized towards goal achievement, it can put in an outstanding performance. 3. Structure The structural relations are instrumental in the behaviour of employees at work. The structured relationship is the basis of formalised policies, procedures, organisational culture, hierarchical authority and responsibilities. The structure of the organisation is not always formal. Many time's informal organisations have more fruitful effects on the effectiveness and efficiency of the organisation. The organisational objectives are reduced to different goals of structural points for their prompt achievement. Structural behaviour of individuals and groups have their own identity and entity. 4. Technology Technology results in better work, because it incorporates technical skills, which encompass the ability to apply specialized knowledge. When people develop their technical skills, they get satisfaction at work. Interpersonal roles, informational roles and managerial functions are improved with the
use of technology. Consequently, human skill as well as conceptual skills are developed. 5. Environment The environment has its own behaviour, which influences the people's behaviour at work. Government policies, social systems, religious beliefs, family and economic conditions national philosophies, employees' psychology and other factors inside and outside the organisation have a mutual influence on each other's behaviour. Environment factors influence work behaviour, us of authority and responsibility, relationships, the perceptual framework of employees and other related factors of behaviour.
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CHALLENGES IN ORGANISATIONAL BEHAVIOUR Before we proceed to discuss how OB knowledge can be applied in practices, let us go through the behavioral challenges that are likely to be faced by managers. The contemporary Indian business Is characterized by two major featuresliberalization of economy and globalization of economy. Liberalization of economy has paved the way for free economy In which one can do what one wants. This has resulted into fierce business competition and business organizations have been forced to change their working styles to face this competition. This change is creating lot of behavioral problems which managers have to solve. Another aspect of the contemporary business Is globalization. This has not only affected Indian business organizations but organizations throughout the world have been affected. In the Indian context, many multinationals have come to India and many Indian organizations have gone abroad. This process is still in progress. Globalization has raised two types of behavioral problems. First, when a manager of Indian origin goes abroad, he has to manage a workforce which is quite different from the workforce that he was managing. Such differences may not be only In terms of languages and living habits but there may be differences In terms of aspirations, needs, attitudes, way of working, etc. It Implies that earlier strategy of tackling behavioral Issues may not be effective; this has to be changed according to the new situation. Second, when a manager joins a multinational company operating in India, he finds himself In totally different work culture. In this situation, the manager has to change himself to fit with the new situation. In the light of this economic liberalization and globalization, we can identify the behavioral challenges that managers have to face in managing organizations. These challenges are as follows: 1. Cross-cultural dynamics, 2. Workforce diversity, 3. Increasing workforce aspirations, ' 4. Increasing quality consciousness, 6. Newer organizational designs, and 6. Mergers and acquisitions.
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1. Cross-cultural Dynamics Cross-cultural dynamics Implies that people of different cultures have different behavioral patterns. On the basis of various researches, It has been concluded that management practices are culture bound and no single management practice is suitable to all cultures. Culture is a set of beliefs, attitudes, and values that are shared commonly by the members of the society. Since different countries may have different cultures, people of different countries may have different behavioral patterns, Hofstede, a Dutch management scholar, studied behavioral patterns of workers and managers in forty countries and found that behaviors differed significantly due to the values and beliefs In various countries' 2 According to Hofstede, there are two dimensions that explain the differences in behaviors due to culture: individualism collectivism continuum and power distance. Individualism collectivism continuum suggests that people's behaviors depend on whether they have belief in individualism or collectivism. Individualism exists to the extent that people in a culture define themselves by referring to themselves as singular persons rather than as part of one or more groups or organizations At work, people from individualistic cultures tend to be more concerned about themselves rather than their work group and individual tasks are more important than relationships, Collectivism is characterized by tight social frameworks in which people tend to base their identity on the group or organization to which they belong. M work, it implies that employer-employee links are more like family relationships. Thus, relationships are more important than individuals or tasks. Power distance is the extent to which less powerful people accept the unequal distribution of power. People coming from high power distance cultures prefer to be in a situation where authority is clearly understood and lines of authority are never bypassed. They observe the organizational rules strictly. On the other hand, people coming from less power distance countries have low respect for authority and are quite comfortable circumventing lines of authority to accomplish jobs. They prefer flexible organisational rules. In the age of rapid globalization, a single organization may have people from diverse cultures. This phenomenon will pose serious challenge before managers to design management practices that are suitable for people coming from different cultures.
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2. Workforce Diversity While cross-cultural dynamics focuses on differences between people from different countries, workforce diversity takes into account differences between people within a given country. Workforce diversity is the extent of differences and similarities in such characteristics as age, gender, ethnic groups, physical abilities/disabilities, race, and sexual orientation among the employees of organisations. Now-a-days, more and more organisations are becoming heterogeneous in terms of employee composition based on age, gender, ethnic groups, physical abilities/disabilities, etc. For example, more and more women are joining business organisations as managers and other specialists. Similarly, special recruitment programmes are being conducted by some types of organisations to recruit members belonging to scheduled castes/tribes, physically handicapped, ex-servicemen, retired employees, and so on. The number of knowledge workers is increasing day-by-day. Because of this workforce diversity, behavioural pattern of employees shows great variation. Workforce diversity has important implications for management practices. Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding those differences in ways that ensure employees' greater productivity while, at the same time, not discriminating. This shift may include giving special attention to certain category of employees in training and development, career planning, etc. It may be noted that while managing workforce diversity effectively may be a challenge but, if managed properly, it results into increased creativity in the organisation because of diversity of ideas due to workforce diversity. 3. Increasing Workforce Aspirations With the passage of time, there is a tendency of increasing workforce aspirations. International demonstration effect and easy access to media, both print and electronics, have led to this increased aspirations. Today, employees not only want decent monetary package but highly conducive workplace. The buzz words in today's workplace are openness, teamwork, quality of work life, empowerment, flexible work schedules, telecommuting, and so on. These features of workplace arc quite different from what used to be in the past. For meeting these aspirations of workforce, managers have to create a new type of work environment to stimulate employees to put their best as well as to attract talents for future requirements.
4. Increasing Quality Consciousness Because of increased competition, both from indigenous as well as from foreign organisations, there is increased emphasis on quality of products and services, that too at competitive cost. Today, the buzz words in quality are total quality management, kaizen (improvement upon improvement), six sigma standard, and quality certification. Because of increased emphasis on quality, organisations have to change not only their technology but way of their working. Such a change results into behavioural problems in employees as they perceive that such a change would affect them adversely. Therefore, the managers have to adopt suitable practices to ensure that employees accept change willingly and become part of the mission of spreading quality consciousness throughout the organisation. 5. Newer Organisational Designs Organisational designs, today, are not based on the classical approach of division of labour, rigid departmentation, authority-responsibility parity, and numerous hierarchical levels. These have moved from bureaucratic to adaptive structure, from mechanistic to organic structure, and from tell to flat structure. Information technology has led to the development, of networked organisations in the form of temporary alliances of suppliers, customers, and even erstwhile competitors. Working pattern of newer organisational designs is quite different from classical organisational designs. Therefore, employees have to unlearn their old way of working and learn new way of working. This transition from old way to new way Is quite painful. It Is the responsibility of managers to create a kind of work environment which enthuses the employees to adapt new way of working. 6. Mergers and Acquisitions Because of economic liberalization, the way of doing business has been changed. Earlier, most of the business houses used to have a diversified business portfolio in which many unrelated businesses used to exist. This was true to individual organisations too. Now-a-days, businesses are being organised around core competency, the unique ability of an organisation to do a particular business or related businesses. Because of this reason, many organisations have divested their unrelated businesses which have been acquired by other organisations. This process has paved the way for mergers and acquisitions. While mergers and acquisitions have business sense, they create challenge of integrating acquired and acquiring companies, and more particularly the integration of people of acquired company. This problem gets aggravated if people-related management
practices of two companies are quite different. In general, people of acquired company have behavioural problems in the form of initial anxiety and stress, fear of loss of jobs, transfer to new locations, job changes including new roles and assignments, change in remuneration and benefits, change in career paths, change in power and status, and problems of adjustment with new organisational and work practices. Unless these behavioural problems are solved, mergers may not be effective. Thus, the challenge before the managers Is how to overcome these behavioural problems and integrate people of acquired company with the acquiring company to make the merger effective.
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ROLE OF ORGANIZATION BEHAVIOUR As discussed above, the suitable knowledge of theoretical constructs in any discipline helps greatly in solving the problems involving that area. This is also true with organisational behaviour. OB offers several ideas to management as to how human factor should be properly emphasized to achieve organisational objectives. Human factor is not merely an instrument in the organisation but the very core of organisational existence. Theorists have observed that an organisation is a conscious interaction of two or more persons. This suggests that since organisation Is the interaction of persons, they should be given adequate importance in managing the organisation. This becomes more important specially because of the changing dimensions of human behaviour, changing from money motivated behaviour to multimotivated behaviour. McGregor suggests that people are moving from Theory X assumptions to Theory Y assumptions. The changing behavioural pattern suggests that organisational structure and process should be based on these characteristics. From this point of view, managers must understand the behavioural pattern of the people and shape this pattern to achieve organisational objectives. Organisational behaviour helps the managers in the following areas: 3. Understanding human behaviour, 2. Controlling and directing human behaviour, and 3. Organisational adaptation. Understanding human behaviour OB provides a way for understanding human behaviour in the organisation. For shaping human behaviour In definite direction for achieving certain predetermined objectives, managers must know how the people in the organisation behave. OB provides way for understanding human behaviour In all the directions In which human beings interact. Thus, behaviour can be understood at the individual level, interpersonal level, group level, and intergroup level. 1.Individual Level. The behaviour of human beings as a social man is the first Issue in behavioural science. It provides for analyzing why and how an Individual behaves In a particular way. As will be seen later, human behaviour Is a complex phenomenon and is affected by a large number of factorspsychological, social, cultural, and others. OB integrates these factors to provide simplicity In understanding human behaviour.
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2. Interpersonal Level. Human behaviour can be understood at the level of Interpersonal interaction. Such interpersonal interaction is normally in paired relationship which represents man's most natural attempt at socialization. When one focuses on the Influence of one's peer and Its effect In working relationship, or examines the superior-subordinate relationship, it is obvious that the two-person relationship Is inevitable in the organisation. OB provides means for understanding this interpersonal relationship in the organisation. Analysis of reciprocal relationship, role analysis, and transactional analysis are some of the common methods which provide such understanding. 3. Group Level. Though people interpret anything at their individual level, they are often modified by group pressure which, thus, becomes a force in shaping human behaviour. Thus, individuals should be studied in group also. Research in group dynamics has contributed vitally to OB and shows how a group behaves In terms of its norms, cohesion, goals, procedures, communication pattern, leadership, and membership. These research results are furthering managerial knowledge of understanding group behaviour which is very important for organisational morale and productivity. 4. Intergroup Level. The organisation is made up of many groups that develop a complex of relationships to build its process and substance. Understanding of the effect of group relationship is important for managers in today's organisation. Intel-group relationships may be in the form of cooperation or competition. The cooperative relationships help the organisation in achieving its objectives. OB provides means to understand and achieve cooperative group relationships through interaction, rotation of members among groups, avoidance of win-lose situation, and focus on total group objectives. Controlling and Directing Human Behaviour After understanding the mechanism of human behaviour, managers are required to control and direct the behaviour so that it conforms to standards required for achieving organisational objectives. Thus, managers are required to control and direct the behaviour at all levels of individual interaction. For this purpose, OB helps managers in many areas: use of power and sanction, leadership, communication, and building organisation climate conducive for better interaction.
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1. Use of Power and Sanction. Organisational behaviour can be controlled and directed by the use of power and sanction which are formally prescribed by the organisation. Power is referred to as capacity of an individual to take certain action and may be utilised in many ways. The use of power is related with sanction in the organisation. However, mere use of power and sanction in the organisation is not enough for directing human behaviour. Moreover, these can be used in several ways and not all ways are equally effective. OB explains how various means of power and sanction can be utilised so that both organisational and individual objectives are achieved simultaneously. 2. Leadership. Another method of bringing human behaviour in tune with organisational requirement is leadership. Today, the difference between a successful and failing organisation lies in the equality of leadership of its managerial personnel. OB brings new insights and understanding to the theory and practice of leadership. It identifies various leadership styles available to a manager and analyses which style is more appropriate in a given situation. Thus, managers can adopt styles keeping in view the various dimensions of organisations, individuals, and situations. 3. Communication. Communication is the building block of an organisation. This communication through which people come in contact with others. People in the organisation, particularly, at higher level spend considerable time in communicating. To achieve organisational effectiveness, the communication must be effective. The communication process and how it works in interpersonal dynamics has been evaluated by organisational behaviour. The factors that affect communication have been analyzed so as to make it more effective. 4. Organisational climate refers to the total organisational situations affecting human behaviour. Organisational climate takes a systems perspective and affects human behaviour. Organisational behaviour suggests the approach to create organisational climate in totally rather than merely improving the physiological conditions or increasing employee satisfaction by changing isolated work process. Satisfactory working conditions, adequate compensation, and the necessary equipments for the job are viewed as only small part of the requirements for sound motivational climate. Of greater importance are the creation of an atmosphere of effective supervision, the opportunity for the realization of personal goals, congenial relations with others at the workplace, and a sense of accomplishment. Thus, OB has discovered a new approach of managing people in the organisation.
Organisational Adaptation Organizations as dynamic entities are characterized by pervasive change. In this age of environmental variability, the real job of a manager is to provide continuity in organisations because the organisations have to adapt themselves to the environmental changes by making suitable internal arrangements. However, such organisational arrangements are mostly resisted by the internal people. Thus, managers have to face dual problems: identifying need for change and then implementing the change without adversely affecting the need for satisfaction of organisational people. It is also the essence of managing change. Management of change is seen as a self-perpetrating ever-evolving phenomenon.
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ADVANTAGES OF ORGANIZATIONAL BEHAVIOR The study of OB has proved beneficial in many ways. The benefits of studying OB are as follows: 1. OB is a systematic study of the actions and attitudes that people exhibit within the organisation. It also helps any individual to understand his behaviour. 2. OB has proved instrumental for managers in getting their work done effectively. 3. OB lays emphasis on the interaction and relations between organisation and individual behaviour. It works as a positive attempt in fulfilling psychological agreement between organisation and the individuals. 4. OB delivers job satisfaction to employees and helps in developing workrelated behaviour in the organisation. 5. OB helps in building motivating climate in the organisation. 6. OB helps in building cordial industrial relations. 7. OB smoothes the progress of marketing by providing deeper insight of consumer behaviour and motivating and managing field employees. 8. OB helps in predicting behaviour and its application in meaningful way delivers effectiveness in the organisation. 9. OB implies effective management of human resources. 10. OB helps in improving functional behaviour within the organisation. It helps in attaining higher productivity, effectiveness, efficiency, organisational citizenship. It works effectively in reducing dysfunctional behaviour at work place like absenteeism, employee turnover, dissatisfaction, tardiness etc.
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11. OB helps in developing the following skills: a) Self development b) Personality development c) Development of human values and ethical perspective d) Managing stress and achieving mental hygiene e) Creative use of emotions f) Creating learning individual and learning organisation g) Managing creativity and innovation h) Motivation and morale i) Job satisfaction j) Effective communication k) Interpersonal effectiveness including persuasion, coaching, counseling, l) Team building m) Leadership n) Creating effective organisational culture o) Managing change p) Continuous development through behavioural interventions.
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DISADVANTAGES OF ORGANIZATION BEHAVIOR The shortcomings of the subject OB that should not be lost sight of are. To start with, though the subject helps an individual understand human behaviour better only in the workplace, he or she may be a failure on the domestic front. People who have a thorough grounding of behavioural disciplines have sometimes proved to be total wrecks in their personal lives. The subject of OB has not contributed to improved interpersonal relations in organizational settings. Jealousies, back-stabbing, leg-pulling, intrigues, harassment, and inequalities in rewards go side by side with nice lectures, training programmes, discussions, smiles, assurances, niceties and the like (Recollect the opening case). An employee is not sure when a pink slip will be handed out or when a reward will be announced. History seems to be repeating itself. In the earlier days, a worker was exposed to 12 to 14 hours of work and was made to work under inhuman conditions. An employee today, particularly in the new economy firms, does work 12 to14 hours a day but under for better working conditions. The worker of the bygone days was stress-free. Today's employee is always under pressure and stress-ridden. While a worker of the earlier years died of lung diseases caused by fumes and dust; today's employee gets burnt out by the time he or she reaches 45 years of age. The subject of OB has almost become a fad with managers in most organizations. Common uniforms, open offices, and shared canteens have, for example, been practiced in several industrial establishments in the name of improving interpersonal relations. But wearing identical clothes has not changed the attitude of the boss towards his/her subordinates. Seldom is the subordinate treated as an equal, and rarely are his/her views respected and accepted. Removal of physical palisades in the office has not abolished the mental barriers between the manager and the managed. The boss and the subordinates may eat the same food in the same canteen. Still, the former expects his/her subordinate to serve him/her the food and treat him/her differently. The dual personalities of managers are often bewildering. Outwardly, they talk about participative management, equality of opportunities, empowerment, and open door policies. Behind the veneer of all this pep talk, is the harsh reality that most of these bosses are feudal lords who expect the subordinates to be slaves. Any deviation from this makes the boss feel insecure. The smart subordinate is feared, bounded, and is finally made to quit. OB is selfish and exploitative. It serves only the interest of the management. It is the product of capitalist societies. With high emphasis on motivation, efficiency, and productivity, the subject breeds a competitive spirit among the employees. They are not allowed to function and live in
harmony with one another. A serious problem that has plagued the subject is the tendency of managers to expect quick-fix solutions from behavioural programmes. This expectation makes the managers address the symptoms while neglecting the underlying problems or to fragment their efforts within the firms. Critics of OB wonder whether the ideas that have been developed and tested during periods of organizational growth and economic plenty will endure with equal success under different conditions. Future environment shall be marked buy shrinking demand, scarce resources, and more intense competition. When organizations stagnate, decline, or encounter a threat of closure, there will be conflict and stress. Under these conditions, will the conflict resolution strategies work? Will the motivational models be relevant? Will the leadership styles e practicable? No easy answers are available to these and other related questions. Finally, OB will not totally abolish conflict and frustration, it can only reduce them. It is a means to improve, not an absolute answer to problems. It is only a part of the whole fabric of an organization. We can discuss OB as a separate subject; but to apply it, we must relate it to reality. However improved, OB will not solve unemployment. It will not make up for our own deficiencies. It cannot substitute for poor planning, inept organizing, or inadequate controls. It is only one of the many systems operating within a larger social system. The shortcomings of OB, however, should not detract the reader from the greatest contribution of the discipline to human lifeunderstanding human behaviour. Life in and outside organizations would not be what it is if we fail to understand ourselves and our fellow beings better.
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IMPORTANCE OF ORGANIZATION BEHAVIOR A study of OB is beneficial in several ways. In the first place, OB provides a road map to our lives in organizations. Every one of us has an inherent need to know about the world in which we live. This is particularly true in organizations, as they have a profound effect on our actions and behaviors. 1. People bring to their work place their hopes and dreams as well as their fears and frustrations. Much of the time, people in organizations may appear to be acting quite rationally, doing their fair share of work, and going about their tasks in a civil manner. Suddenly, a few people appear distracted, their work slips, and they even get withdrawn. Worse still, one may find someone taking advantage of others to further his or her personal interests (Recollect the opening case).Occasionally, you are likely to get caught up in anxiety-provoking organizational changes that involve redeployments or even layoffs. Such a range of human behaviors makes life in organizations perplexing. But those who know what to look for and have some advance ideas about how to cope with pressures are more likely to respond in ways that are functional, less stressful, and even career-advancing. We, therefore, need to map out organizational events so that we can function in a more secure and comfortable environment. 2. The field of OB uses scientific research to help us understand and predict organizational life. This is not to say that this knowledge is absolute. The decisions and actions that people in organizations make are determined by a complex combination of factors. Besides, the field of OB is not a pure science. Nevertheless, it helps us make sense of the workplace and, to some extent, predict what people will do under various conditions. 3. OB helps us influence organizational events. Though it is good to understand and predict organizational events, most of us want to influence the environment in which we live. Whether one is a marketing specialist or a computer programmer, he or she needs to know how to communicate effectively with others, manage conflict, make better decisions, ensure commitment to ideas, help work teams operate more effectively, and the like. OB theories and concepts will. help us influence organisational events. 4. OB helps an individual understand himself/herself and others better. This helps improve interpersonal relations considerably. Of particular significance are topics like attitude, perception, leadership, communication, T.A. and conflict, an understanding of which will change
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the very style of talking and functioning of an individual. It is no exaggeration that the MBA graduate always remembers, with satisfaction, OB among all the subjects of his/her course, even after graduation. A manager in a business establishment is concerned with getting things done through delegation. He or she will be successful when he or she can motivate subordinates to work for better results. OB will help the manager understand the basis of motivation and what he or she should do to motivate subordinates. The field of OB is useful for maintaining cordial industrial relations. If an employee is slow in his or her work, or if his or her productivity is steadily declining, it is not always because of denial of promotion or a poor work environment. Similarly, if the union of workers gives a strike call, the basic issue may not be a demand for more wages, higher bonus, a better canteen, or for three pairs of uniform in the place of two. Often the indifferent attitude of the boss makes the worker lazy. Similarly, reluctance of the management to talk to union leaders about issues might provoke them to give a strike call. In other words, relations between management and employees are often strained for reasons which are personnel issues, not technical. Human problems need to be tackled humanely. OB is very useful in this context as it helps understand the cause of the problem, predict its course of action, and control its consequences. It is also a human tool for human benefit. The field of OB serves as the basis for human resource management. The subject of OB is also useful in the field of marketing. In the dynamic mechanism of the flow of goods and services from producer to consumer, awareness of the nature of individual and social processes has an immediate or long-range contribution to the success or failure of the enterprise. Consumer choice behaviour, the nature of influence, and the channels involved, represent leading topics for behaviour research in this area. Innovation and the diffusion of new products, creativity, and the learning of responses are equally important social and individual phenomena that contribute to the total process. The most popular reason for studying OB is that the reader is interested in pursuing a career in management and wants to learn how to predict behaviour and apply it in some meaningful way to make organizations more effective. A successful manager should have good 'people skills' which include the ability to understand one's employees and use this knowledge effectively to make them more efficient.
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9. In the last couple of years, our economy has been witnessing a upward trend; every sector of the economy doing pretty well, registering an overall growth rate of seven per cent per annum. In order to sustain this trend, effective management of all sectors of the economy, particularly the industrial sector, is of paramount importance. Effective management does not mean competent utilization of technical or financial resources alone. Rather, it implies efficient management of human resources. This is where OB comes into the picture. It is a discipline which enables a manager to motivate his or her subordinates towards higher productivity and better results.
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CONTEMPORARY ORGANIZATION BEHAVIOR OB is not a discipline in itself but- it uses knowledge developed in the relevant disciplines. OB basically draws concepts and principles from behavioural sciences and the core disciplines of behavioural sciences are psychology, sociology, and anthropology. Since these disciplines themselves are part of social sciences, it can be said that OB draws something from social sciences like economics, history, and political science. OB draws knowledge from all these disciplines but it does not draw the whole knowledge of these disciplines but only the relevant knowledge which helps in predicting and directing human behaviour in the organisation. The contributions are from the following Psychology The term 'psychology' comes from the Greek word 'psyche' meaning soul or spirit. Modern psychology is almost universally defined as the science of behaviour which is nearly identical with behavioural science, in general. Though there arc two other disciplines which make behavioural science, psychology is more closely identified with overall behavioural science. Psychology is a science of behaviour, the term behaviour being interpreted literally, for it comprehends not. only objective and subjective form of human behaviour but also the behavior of the animals. Psychology studies behaviour in various conditionsnormal, abnormal, social, industrial, legal, childhood, adolescence, old age, etc. It also studies processes of human behaviour, such as learning, thinking, memory, sensation, perception, emotion, feeling, and personality. Its contributions to behavioural science, as applied to managerial practices, arc In the field of learning, perception, motivation, individual and group decision making, pattern of influence, and change in organisations, group process, vocational choice and satisfaction, communication, and personnel selection and training. In fact, there is a separate brands of Industrial psychology which deals with the application of psychological facts and principles to the problems concerning human relations in organisations. Human relations is the integration of human factor into work situation which motivates it to work together effectively providing it social, psychological, and economic satisfaction. From this point of view, the contribution of psychology is quite significant.
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Sociology Sociology can be described as an academic discipline that utilizes the scientific method in accumulating knowledge about man's social behaviour. It studies the patterned, shared human behaviour; the way in which people act toward one another. It specifically studies social groups, social behaviour, society, customs, institutions, social class, status, social mobility, and prestige. It has also developed sub-fields of political sociology, Industrial sociology, sociology of law, family sociology, educational sociology, and sociology of religion. To the managerial practice, Its contribution is mainly in the field of bureaucracy, role structures, social system theory, group dynamic, effect of Industrialization on the social behaviour, etc. Anthropology The term 'anthropology' combines the Greek stem 'onthropo' meaning man and the noun ending logy' meaning science. Thus, anthropology can be defined as the science of man. It particularly studies civilization, forms of cultures and their impact on Individuals and groups, biological features of man and evolutionary pattern, speech and relationship among languages. Anthropology contributes in understanding the cultural effects on organisational behaviour, effects of value systems, norms, sentiments, cohesion, and Interaction. Besides these three basic behavioural disciplines, economics contributes in understanding the decision process, methods of allocating scarce resources in the organisations, and the impact of economic policy on organisations. Political science provides clue to conflicts in organisations, power and authority structure, and overall administrative process. From historical approach, case studies have emerged which have helped in clarifying the roles of decision makers. Social Psychology This concept borrows ideas from both sociology and psychology. It focuses on the influence of people on one another. One of the areas receiving considerable attention from social psychology is change- how to reduce resistance to it and implement it successfully. Additionally social psychology is useful in measuring, understanding and changing attitudes, communication patterns, the ways in which the group activities can satisfy individual needs, and in group decision making process.
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Engineering This discipline too has influenced ob. Industrial engineering in particular has long been concerned with work measurement productivity measurement and labor relations. Most recently medicine has also come into play in connection with the study of OB especially in the area of stress. Increasingly research is showing that controlling the causes and consequences of stress within the organization is important for the well being of both the individual and the organization Political Science Contributions from political scientists for a better understanding of OB are very significant. Political scientists study the behaviors of individuals and groups in a political environment. In the pat the term political party was looked upon as dirty not anymore. Organizations are becoming political entities and a better understanding of them cannot be without understanding the political perspective.
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APPROACHES TO ORGANIZATION BEHAVIOR Human Resource Approach This approach recognizes the fact that people are the central resource in any organization and the they should be developed towards higher levels of competency, creativity, fulfillment. People thus developed will contribute to the success of the organization. The human resource approach is also called the supportive approach in the sense that the managers role changes from control of employees to active support to their growth and performance. The supportive approach contrasts with the traditional approach where mangers decide what the employees should do and closely monitor their performance to ensure the completion of the task. In HR approach the role changes from structuring and controlling to supporting Contingency Approach The contingency approach is another useful way of looking at OB This approach assumes that there is no 'one best way' available in any organisation. It suggests that in most organisations situations and outcomes are contingent on, or influenced by, other variables the contingency approach to OB differs from the universal approach The universal model, shown at the top of the figure, presumes a direct cause and effect link between variables. For instance, it suggests that whenever a manager encounters a certain problem or situation (such as motivating employees for higher efficiency and greater output), a universal approach does exist (such as rising pay), that will lead to the desired outcome. The contingency approach, on the other hand, acknowledges that several other variables affect the relationship. Other words, the appropriate managerial action or behaviour in any given situation depends the elements of that situation. Systems Approach The systems approach to OB views the organisation as a united, purpose system composed of interrelated parts. This approach gives managers a way of looking at organisation in totality: as a whole person, whole group, social system. In doing so, the system approach tells us that the activity of any segment of an organisation affects, in varying degrees the activity of every other segment. According to this approach, an organizational system receives four kinds of inputs from environment: material, human, financial, and informational. The organisation converts these inputs into products or
services, employee behaviour, profits or losses, and additional information and supplies these to the environment. The system then receives feedback from the environment regarding the outputs. Thus the organisation becomes an input-transformation-out) system. Managers should not become passive spectators of organisational systems. A key function managing is to adapt to transform system elements to achieve goals within a dynamic environment. Managers need to work with people and allocate resources to carry out tasks within an environment of change. The main purpose of this book is to train managers to manage organisational system more effectively. The systems approach has functional consequences for managers. For one thing, it underscores the importance of an organizations environment. Failing to acquire the appropriate resource and to heed feedback from the environment, for instance, can be disastrous. The systems approach also helps managers conceptualize the flow and interaction of various elements of the organization as they enter the system, is transformed by it, and then re-enter the environment. Productivity Approach Productivity, which is the ratio of output to input, is a measure of the organizations effectiveness. It also reveals the manager's efficiency in optimizing resource utilization. The higher the numerical value of this ratio, the greater the efficiency. Productivity is generally measured in terms of economic inputs and outputs, but human and social inputs and outputs also are important. For example, if better OB can improve job satisfaction a human output or benefit occurs. In the same manner, when employee development programmes lead to a by-product of better citizens in a community, a valuable social output occurs. OB decisions typically involve human social, and/or economic issues, and so productivity, usually a significant part of these decisions is recognized and discussed extensively in the literature on OB. Interactionalism Interactionalism is a relatively new approach to understanding behaviour ii organisational settings. First presented in terms of interactional psychology, this view assumes that individual behaivour results from a continuous and multidirectional interaction between characteristics of the person and of the situation. More specifically, Interactionalism attempts to explain how people select, interpret, and change various situations. It should be noted that the individual and the situation are presumed to interact continuously. This interaction is what determines an individual's behaviour.
ORGANISATIONAL BEHAVIOUR MODELS A model is an abstraction of reality, a simplified representation of some real-world phenomenon. Models are developed in different fields to guide activities in those fields. In the field of organisational behaviour, models arc developed to provide framework about 'how people will be treated in an organisation'. Every organisation develops a particular model in which behaviour of the people takes place. This model Is developed on the basis of management's assumptions about people and the vision of the management. Since these assumptions vary to a great extent, these result into the development of different organisational behaviour models (OB models). From the very beginning of the civilised human society, two alternative approaches have been adopted for placing trust on people. One says "trust everyone unless there Is a contrary evidence"; another says ''do not trust anyone unless there is a contrary evidence". Naturally, interpersonal interactions take place differently under these two approaches. Following description of the organisations is worthwhile to note here:"Most of our organisations tend to be arranged on the assumption that people cannot be trusted or relied on, even in tiny mattels."l4However, this is only one side of the coin. In the field of OB, assumptions about people have been made on two extreme sides. For example, McGregor has given theories X and Y, and each theory makes assumptions which arc quite contrary to each other"; Thus, OB models developed on the basis of these assumptions would show great variations. However OB models that are in practice show some kinds of continuum between these two opposite poles, though they tend to lean towards a particular pole. Davis has described four OB models which arc as follows 1. Autocratic 2. Custodial 3. Supportive 4. Collegial Autocratic Model In the autocratic model, managerial orientation is towards power. Managers see authority as the only means to get the things done and employees are expected to follow orders. The result is high dependence on boss. This dependence is possible because employees live on the subsistence level. The organisational process is mostly formalised; the authority is delegated by right of command over people to whom it applies. The management decides what the best action for the employees is. The model is largely based on the" Theory X assumptions of McGregor- where the human
beings are taken inherently distasteful to work and try to avoid responsibility. A very strict and close supervision is required to obtain desirable performance from them. Likert's management system can be compared with the model of organisational behaviour. His system] (exploitative, authoritative) in which motivation depends on physical security and some use of desire for status and better performance is ensured through fear, threats, punishment, and occasional rewards; communication is mostly one-way, that is, downward: there is little interaction between managers and employees. The autocratic model represents traditional thinking which is based on the economic concept of the man. With the changing values and aspiration levels of people, this model is yielding place to others. However, this does not mean that this model is discarded in toto. In many cases, the autocratic model of organisational behaviour may be a quite useful way to accomplish performance, particularly where the employees can be motivated by physiological needs. This generally happens at lower strata of the organisation. Custodial Model In the custodial model, the managerial orientation is towards the use of money to pay for employee benefits. The model depends on the economic resources of the organisation and its ability to pay for the benefits. While the employees hope to obtain security, at the same time, they become highly dependent on the organisation. An organisational dependence reduces persona] dependence on boss. The employees are able to satisfy their security needs or in the context of Herzbergs theory, only maintenance factors. These maintenance factors provide security but fail to provide strong motivation. Although employees working under custodial model feel happy, their level of performance is not very high. This resembles again to Herzbergs satisfactory and dissatisfactory. Since employees are getting adequate rewards and organisational security, they fed happy. However, they are not given any authority to decide what benefits or rewards they should get. This approach is quite similar to patrimonial approach where the basic assumption is that it is the prerogative of management to decide what benefits are best suited to the employees. Such an approach is still quite common in many business organizations in India. This phenomenon is more predominantly in familymanaged business organisations where family characteristics have also been applied to the organisational settings, The basic ingredient of the family-managed system is that parents decide what is good or bad for their
children; managers decide what is good for their employees. From this point of view, this model is not suitable for matured employees. Supportive Model The supportive model of organisational behaviour depends on managerial leadership rather than on the use of power or money. The aim of managers is to support employees in then-achievement of results. The focus Is primarily on participation and involvement of employees in managerial] decision-making process. The model is based on 'principles of supportive relationships' of Likert, which is the basic ingredient of his. Likert states that the leadership and other processes of the organisation must be such as to ensure a maximum probability that in all interactions and all relationships with the organisation, each member will, in the light of his background, values, and expectations, views the experience as supportive and one which builds and maintains his sense of persona] worth and It is quite similar to the assumptions of McGregors Theory Y. The supportive model is based on the assumptions that human beings move to the maturity level and they expect the organisational climate which supports this expectation. Various organisational processescommunication, leadership, decision making, interaction, control, and influenceare such that these help employees to fulfill their higher order needs such as esteem and selfactualisation. Likert has shown that supportive model is best suited in the conditions where employees are self-motivated. Thus, this emphasizes not on the economic resources of the organisation but its human aspect. Manager's role is to help employees to achieve their work rather than supervising them closely. This can be applied more fruitfully for higher level managers whose lower order needs are satisfied reasonably. Organisations with sophisticated technology and employing professional people can also apply this model for getting best out of their human resources. However, this does not mean that this model can be applied in all circumstances. For example, Davis observes that the supportive model tends to be especially effective in nations with affluence and complex technology, because it appeals to higher order needs and provides Intrinsic motivational factors. It may not be the best model to apply in less developed nations, because their employees need structures arc often at lower levels and their social conditions are differently Moreover, this model can be applied more fruitfully for managerial levels as compared to operative levels. As such, the tendency of modern management is to move towards supportive model, especially for their management groups.
Collegial Model Collegian model is an extension of supportive model. The term 'collegial' refers to a body of people having common purpose. Collegial] model is based on the team concept in which each employee develops high degree of understanding towards others and shares common goals. The employee response to this situation is responsibility. Employees need little direction and control from management. Control is basically through self-discipline by the team members. The organisational climate is quite conducive to selffulfillment and self-actualisation. Collegial model tends to be more useful with unprogrammed work requiring behavioural flexibility, an intellectual environment, and considerable job freedom. The various modes of organisational behaviour- are based on the assumption of the human characteristics and how they can work best. Since situational variables are strong factors in determining the organisational processes, managers cannot assume that a particular model is best suitable for all purposes and for all situations. Rather, all the models will remain in practice and that too with considerable success. These models are basically constructed around need hierarchy. Since need hierarchy is not similar for all the employees, the same model cannot be used for all of them. The need hierarchy changes with the level of a person in the organisation, level of his education, level of maturity, personality factors, and the type of work environment. Considering these factors, a particular model can be applied. Organisation theorists have argued that there is a tendency to move towards the adoption of supportive model as in this case, people may give their best because in other models, they do not find conditions conducive to give their best performance. Tills Is why managers are taking a number of steps to humanize their organisations, such as participation, morale building, and so on to make the organisations more effective.
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CASE STUDY: SUPER ENGINEERING COMPANY Super Engineering Company was a multi locational light engineering company. It had manufacturing facilities at Hyderabad, Pondicherry, and Indore. The company adopted budgetary system with main emphasis on production and expense budgets. The budget targets used to be set on the basis of analysis of production facilities and production operations. While the two units located at Hyderabad and Pondicherry were working properly and were able to meet their budget Indore unit was not able to do so. Mr. P Manohar was transferred to Indore unit as plant manager he joined the company about eight years back as engineer trainee and became the assistant plant manager at the Hyderabad unit, the biggest of the three units. Manohar was very ambitious and a little too autocratic. He believed in the exercise of authority and control to carry out his Instructions. He was high achiever and believed in getting things done. He got quick promotions in the company. Immediately after joining at Indore unit as plant manager, Manohar made preliminary study of the plant and issued Instructions to all departments to reduce their expenses by five per cent. A fortnight later, he instructed the departments to Increase production by ten per cent. He also instructed all supervisors to strictly adhere to budgets. He introduced several new reports and watched the operations very closely. He suspended two supervisors in the second month for not meeting the budget targets. Subsequently, two supervisors left the plant. With all his efforts, the unit was very much on the right track and within six months, exceeded the new budgeted figures by eight per cent. On setting the plant right, he was called back at Hyderabad unit as plant manager where vacancy arose. However, shortly after he left for Hyderabad, the productivity at Indore unit fell below the earlier level and the budget was again in trouble.
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CASE STUDY: SUMMARY As seen in the above case the unit of Super Engineering Ltd in Indore was not working efficiently. The costs exceeded the budget and the production was slow. The unit needed proper supervision. The work culture and organization behavior in the unit was not conducive for the higher efficiency. To remedy this situation an ambitious and autocratic manager Mr. P. Manohar from Hyderabad was transferred to the Indore unit. Mr. Manohar is a high achieving and goal oriented employees who moved up the companys ranks very fast due to his goal oriented and profit oriented approach. He viewed the situation at the Indore unit and ordered all departments to reduce cost by 5% and after a fortnight asked them increase production by 10%. He let go of supervisors and employees who were inefficient and not up to his standards. Within 6 months he got the results he wanted and was called back to his unit in Hyderabad. But a few months after he left the Indore unit fell to its previous condition and had trouble maintaining the budget. This shows that the units organization behavior did not support the employees efficiently. The very basis of OB is to integrate the wants of the employee with the organization so that the employee strives towards achieving the organizational objectives. This was not achieved in the Indore unit. Efficient leadership is an integral part of OB as a good leader sets an example to his employees of the behavior expected of him. It is also necessary to treat the human aspect of an organization with respect. They are the most important resources and without them the organization cannot work efficiently. This is seen in the above case as the employees do not accept and respect the company enough to make an effort to improve its production. The model of OB followed here is autocratic model. While this model may be criticized by some to be very harsh it is necessary as there are some instance and some employees who refuse to work efficiently without firm control over them as seen in the above case. Thus it is necessary that all aspets of OB should be viewed while assessing a situation or a company as appropriate OB or the lack thereof is the cause of most problems.
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CONCLUSION Organization Behavior is an integral part of any organization. It is a collection of interacting and inter related human and non-human resources working toward a common goal or set of goals within the framework of structured relationships. Organizational behavior is concerned with all aspects of how organizations influence the behavior of individuals and how individuals in turn influence organizations. The models of Organizational Behavior collegial model, supportive model emphasize on the importance of employees and their cooperation for the organization to work smoothly and achieve organizational goals. Autocratic model on the other hand, focuses on the importance of supervision and having firm control on all operations. Custodial model concentrates on giving employees benefits for the work that they do which in turn makes them more dependent on the organization. Organizational Behavior includes the social, psychological and anthropological aspects of human life. It tells us how these affect an employees work morale. It also takes into account the modern technological and political aspects that affect the work culture. The HR approach signifies the importance of workers in an organization. Systems approach helps in looking at all the operations as a whole. Contingency approach tells that there is no one best way and helps in searching for alternatives. Organizational Behavior helps in minimizing the industrial disputes that frequently occur and lead to lock-outs or strikes. It helps in maintaining a positive approach towards working habits. It helps in maintaining a conducive work climate which encourages employees to work better. Hence it is important for any firm to possess good Organization Behavior.
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BIBLIOGRAPHY Books Management Processes and Organization Behavior by L.M. Prasad Organizational Behavior by K. Ashwathappa Organizational Behavior by Vinay Prabhu Economic and Financial Indicator Websites www.google.com www.business.gov.in www.scribd.com Magazine Business Line Economic Times Magazine
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Organisational Behaviour Final

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Organisational Behaviour Final

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Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

Management of Organization Behavior

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