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Submitted To:
Mr. Musa Khan
DY. General Manager HR (Pb)

Submitted By:-
Sehar Azhar (Internee)


Organizational Behavior:-
It is a field of study that investigates the impact that individuals, groups and structure have on
behavior within the organizations, for the purpose of applying such knowledge toward improving
an organizational effectiveness.
Why we study Organizational Behavior:-
To learn about yourself and others.
To become familiar with teamwork.
To help you think about the people issues faced by managers and entrepreneurs.
Understand the organizational factors that influence work.
Understanding how the work environment shapes the organizational performance.
Components of Organizational Behavior:-
Understanding the organizational behavior requires studying;-
Individuals in organizations
Groups and teams processes
Organizational processes
Nature of Organizational Behavior:-
1. A separate field of study and not a discipline only:-
It has assumed the status of a distinct field of study. It is a part of general management. It
represents the behavioral approach to management.
2. A normative science:-
OB is a normative science. A normative science prescribes how various findings of researches
can be applied to get organizational results, which are acceptable to the society.

3. A science and art:-
It is considered both science and the art. It is consider as art because it contains knowledge about
behavior of individuals. It is consider as science because it involves application of science.
4. Oriented towards organizational objectives:-
It tries to integrate both individuals and organizational objectives so that bot are obtained
Organizational Processes:-
Four behavioral processes that contribute to effective organizational performance are:
The Importance for obtaining individual, group and organizational performance, defined by
some in terms of specific traits and behaviors; the combination of those behaviors; or dependent
upon the specific situation in which the leading is occurring.
Communication Process
Links the organization to its environment and links parts within the organization to each other.
Decision-Making Process:
The dynamics, variety and techniques of both individual and group decision-making.
Organizational Change and Development Processes:-
The plans attempts to implement change that will improve overall individual, group, and
organizational performance. It involves the study of Organizational structure and Design and
Managing change and Innovation.
Characteristics of OB:-
Large size
Human resources
Pattern behavior
Contributing fields to OB:-
Social- psychology
Challenges at the individual level:-
Job satisfaction
Behaving ethically
Challenges at group level:-
Working with others
Workforce diversity
Challenges at organizational level:-
Competition from the global environment
Developing effective employees:-
1. Absenteeism
2. Turnover
3. Organization citizenship behavior
Significance of OB:-
Managing workforce diversity
Improving ethical behavior
Creating a positive work environment
Helping employees balance work-life conflicts
Stimulating innovation and change
Improving people skills
Improving customer service
Importance of OB:-
The importance of organizational behavior rests in understanding how individuals, groups, and
organizational structures interact and affect one another. Organizational studies examine
communication patterns between individuals and groups, as well as the structure and culture of
organizations. A detailed look at workplace behavior, business culture, and organizational
practices generates greater insights about communication patterns and conflicts. Such findings
sometimes spark solution-oriented policies and organizational change, causing leaders to
implement rewards systems, new communication methods, or innovative management
Studying the ways that individuals and groups interact is often critical for explaining challenges
within an organization. Due to fear of change, employees may be reluctant to embrace a new
piece of technology, thereby interfering with an organization's advancement efforts. The
importance of organizational behavior in such a situation is highlighted by an effort to
understand and effectively manage fear of change across the organization. In this case, fine
tuning of leadership strategies may be necessary for the organization to meet and exceed its
goals. As a solution, managers might hold one-on-one meetings with employees, establish
incentives, and/or implement training sessions to help employees adapt to new systems.

I mportance of Organizational behavior for the managers:-
Organizational behavior provides a useful set of tools at five levels of analysis.
It helps managers to look at the behavior of individuals within an organization.
It aids their understanding of the complexities involved in interpersonal relations, when
two people (two coworkers or a superior-subordinate pair) interact.
Organizational Behavior is valuable for examining the dynamics of relationships within
small groups, both formal teams and informal groups.
When two or more groups need to coordinate their efforts, managers become interested in
the intergroup relations that emerge.
Organizations can also be viewed and managed as whole systems that have inter
organizational relationships.

Organizational behavior at PI A:-
PIA is a huge corporation with more than 17,000 employees. This organization is divided into
following departments: Human Resource and Administration, Marketing, Corporate Planning,
Information Services, Finance, Flight Services, Flight Operation, Engineering, Procurement and
Logistics, Customer Services, Training and Development, Quality Assurance. The organogram
of the organization follows, with the Chairman at the top and directors of departments reporting
to him. The structure is centralized with the top-level management making the decisions.
The distinguished culture is determined by the vision and values communicated throughout the
structure and amongst people. Since Pakistan International Airlines is a bureaucratic
organization, so the culture is similar to that of any government organization. The culture
determines the type of leadership, communication and group dynamics within the organization.
The workers perceive this as the quality of work life which directs their degree of motivation.
The final outcome is performance, individual satisfaction, and personal growth and development.
PIA Mission:-
To be a world class airline exceeding customer expectations through dedicated employees
committed to excellence.
Seven Characteristics of organizational Culture:-
Characteristics PIA
Innovation and risk taking Low
Attention to detail Low
Outcome orientation High
People orientation Low
Team orientation High
Aggressiveness Low
Stability High
The results show that PIA focuses more on the goal rather than means to achieve it. The
characteristics and values form the organizational structure which determines the behavior of
employees and the effectiveness of the organization.
Customer Expectations (Convenience, Care, Affordability)
Service (Personalized, Courteous, Passionate)
Innovation (New Ideas, Products, Value Added Services)
Cohesiveness (Respect for Individuals, Teamwork, and Effective Communication)
Integrity (Business Ethics, Accountability, and Transparency)
Reliability (Loyalty and Consistency)
Safety (Passengers, Employees, Environment)
Social Responsibility (Welfare, Health, Education)
Leadership and Decision Making:-
A public organization, PIA, has an autocratic style of leadership. The decisions are made by the
top level management without involving their employees. These decisions are primarily policy-
based decisions like the purchase of new planes, replacement of new fleets and changes in the
fares of tickets.
Delegation of Tasks:-
Delegation of authority is limited due to the centralized structure of PIA. The authorities reserve
the right to make decisions in interim board meetings. The current status of employees is less
control and authority over different tasks apart from their own assigned tasks, so employees feel
distant as far as other issues and problems of the departments are concerned
Employees Attitudes:-
At PIA, every employee is expected to show complete responsibility through their attitudes and
avoid behavior which clashes directly with the organizations interest. In case of deviant
workplace behavior, administrative action is taken against the employee according to the
standing rules of PIA.
All human resource issues are dealt in accordance with the policies and procedures manual vol. I
& ii, which deals with every aspect of employee behavior.
Training to enhance attitudes:-
A PIA Training Center (PTC), operating in Karachi, conducts training courses to augment the
skills of employees while the scope for enhancing their attitudes (beliefs and emotions) through
these courses is meager.
Employee Dissatisfaction:-
If PIA believes that dissatisfaction or absenteeism is affecting the productivity level of
employees, then the root cause of such factors is identified. If a genuine reason emerges, the
employee is assisted in rectifying the situation; if not, then the employee might get a letter of
warning. Employees at PIA can express dissatisfaction through the Suggestion Boxes located at
various sites of PIA. Furthermore, quarterly employee co-ordination meetings are held where all
employees can share their views with their bosses and subordinates.
Code of Conduct:-
If the code of conduct is violated in PIA, a Show Cause Letter is issued while in severe cases
the employee is suspended until a proper investigation takes place.
During promotions experience, skill, education and past performance of the employee are
considered, however, experience takes precedence over all other deciding factors. PIA believes
that experienced employees have the knowledge and expertise, gained over years, to handle
diverse employees and unprecedented situations. They do the promotions on three bases:-
Time bases
Vacancy bases
Qualification bases
The organizational structure of PIA is centralized, therefore decision-making is a time-
consuming process and delays occur in downward communication. Though, it is believed that
the current Chairman is inclined towards a decentralized system, the effectiveness of such an
approach in PIA remains to be seen. Effective communication is essential in all organizations
and it becomes even more essential in an organization like PIA due to its large size and expanded
network. It is necessary that people from various departments communicate between each other
to have an overall uniformity. Previously fax was widely used to transmit information, however,
with the technological advancement e-mails are used for this purpose. Another mode of
communication is through letters.

Employee feedback is considered important in PIA to an extent as it enables the management
and the human resource department to have an insight on the needs and the requirements of the
employees. Accordingly top management is informed about employees necessities which have
led to decisions being made in the favor of the employees in the past and has also improved
overall system of the organization.
J ob Rotation:-
At PIA, employees are not rotated amongst various departments unless they request for a
Employee Security:-
According to the Business Principles & Ethics Policy, employees at PIA are required to
maintain an environment, devoid of harassment, in which all members are equally respected and
encouraged to contribute to the best of their abilities in an atmosphere of freedom and mutual
trust. Employees are encouraged to voice their troubles and apprehensions so that dissatisfaction
levels are curbed. They feel secured as this organization is under Federal Government and
employees got the permanent jobs.
Exits I nterviews:-
At PIA, exit interviews depend on the immediate supervisors and Departmental Heads. Some of
them are keen on the idea, others are not: there is no clear policy for exit interviews. During
downsizing employees are offered different packages such as a Golden Hand Shake in which
employees are paid a lump sum amount for their services. This is done to maintain a healthy
relationship between the management and the employees and also to make employees feel that
they are being taken care of in the organization
Employee Satisfaction:-
Employee satisfaction is essential for the retention of competent employees at PIA. The
management strives to achieve this by promoting employees in next pay groups (move-over),
giving monetary rewards (bonuses) and transferring employees to foreign posts.
Flexibility in Rewards:-
There is no flexibility in the companys benefits and administrative procedures according to the
policy of PIA. This can also be due to the reason that the organization hires contractual
employees regularly.
Sharing of I nformation:-
Efforts are made by PIAs management to ensure that employees are exposed to information in a
manner which minimizes uncertainty amongst them so that they are not disillusioned. However,
information through grapevine disturbs this process at times.
In an airline industry almost all tasks are performed through team work and PIA is not any
different. From ticket reservation to the landing of the plane team work is the decisive factor.
Employees work in various teams such as ground staff, cabin crew, flight attendants, office staff
etc. All these teams have different sets of tasks to perform but cohesion among these teams is
necessary to run the day to day operations. Considering the diverse nature of employees PIA has,
it is difficult to make team work efficient so it is major challenge for them.
Formal Group:-
At present, all unions have been banned in all public/semi-government organizations under the
policy of the government. Disagreement among employees is resolved through applications and
appeals. Some cases may be dealt by the ELT (Employee Leadership Team), headed by the
I nfluence of groups in decision making:-
The sheer size of the organization leads to the formulation of various formal and informal groups
at PIA. The informal groups influence the overall decision making process to some extent due to
the nature of the workplace. These informal groups are formed because many employees have
been there in the organization for several years and they share common interests.
Power and Politics:-
In PIA employees are less empowered which means all the power rests with the top level
management and they can exercise it at their will. Also their power cannot be challenged by the
employees and compliance to the decisions being made by them is essential. We can also say
that in PIA that legitimate power is exercised. This also leads to high employee dissatisfaction
because in order to be influential one needs to have personal contacts. This is the reason
employees focus more on networking rather than concentrating on their jobs. We were not able
to get an insight on the various political issues in the organization but it is a common observation
that illegitimate political behavior is a common practice. It is present in the form of nepotism,
intentionally damaging the image of other employees.
Performance Management:-
Most companies have a formal performance appraisal system in which employee job
performance is rated on a regular basis, usually once a year. A good performance appraisal
system can greatly benefit an organization. It helps direct employee behavior toward
organizational goals by letting employees know what is expected of them, and it yields
information for making employment decisions, such as those regarding pay raises, promotions,
and discharges. Developing and implementing an effective system is no easy task, however. For
instance, one study found that a majority of companies65 percentare dissatisfied with their
performance appraisal systems. Analysts have found that a fairly low degree of reliability and
validity remains a major bug in most appraisal systems.
There are three major steps in the performance appraisal process: identification, measurement,
and management. With identification, the behaviors necessary for successful performance are
determined. Measurement involves choosing the appropriate instrument for appraisal and
assessing performance. Management, which is the ultimate goal, is the reinforcing of good
performance and the correction of poor performance. Each step is described below. Additionally,
management by objectives, which involves evaluating performance without a traditional
performance appraisal, is described.
The organization must determine for each job family the skills and behaviors that are necessary
to achieve effective performance. The organization should identify dimensions, which are broad
aspects of performance. For instance, "quality of work" is a dimension required in many jobs. To
determine which dimensions are important to job performance, the organization should rely on
an accurate and up-to-date job analysis. Job descriptions written from job analyses should offer a
detailed and valid picture of which job behaviors are necessary for successful performance.
Once the appropriate performance dimensions have been established for jobs, the organization
must determine how best to measure the performance of employees. This raises the critical issue
of which rating form to use. In the vast majority of organizations, managers rate employee job
performance on a standardized form. A variety of forms exist, but they are not equally effective.
To be effective, the form must be relevant and the rating standards must be clear. Relevance
refers to the degree to which the rating form includes necessary information, that is, information
that indicates the level or merit of a person's job performance. To be relevant, the form must
include all the pertinent criteria for evaluating performance and exclude criteria that are to job

Different methods can be used to measure the performance such as:-
Graphic Rating scale
Behavior Anchored Rating scale
Behavior Observation scale
Management by Objectives
Performance-Review checklist: Evaluating Employees intangible characteristics:-
As part of the performance-review process, supervisors can use the following questions to help
quantify the intangible qualities in their employees.
1. Does the employee set verifiable short- and long-term goals?
2. Are the employees goals in tune with company needs?
3. does the employees planning show sound assumptions reflecting the companys goals and
4. Does the employee typically achieve expected results?
5. Is the employee aware of what is going on in his or her department, including who is doing
6. Does the employee know what the department can do in an emergency?
7. Does the employee do a good job of delegating work according to subordinates abilities?
8. Does the employee see relationships between facts and draw appropriate conclusions quickly?
9. Does the employee learn from experience?

10. When confronted with an emergency, does the employee quickly recognize the most
important priorities?
11. Does the employee appreciate the financial implications of his or her decisions?
12. Does he or she make decisions quickly, but not hastily?
13. Does the employee anticipate what has to be done?
14. Does the employee perform well in the absence of superiors?
15. Has the employee made original suggestions to improve operations?
16. Does the employee explain rather than command?
17. Do people listen closely when he or she speaks?
18. Does the employee spell out the benefits of doing things his or her way?
19. Does he or she deal smoothly with unexpected developments?