Unit­1   Meaning of OB

Meaning & Importance of OB
Understanding Organisational Behaviour
              Behaviour in an organziation has become a special subject. It
is the knowledge of human  behaviour  at  work. Human behaviour  in
organization   is   determined   by   the   requirements   of   the   formal
organization   and   partly   by   the   personal   systems   of   the   individuals
forming   the   organization.   The   behaviour   that   emerges   from   this
interaction defines the field of organizational behaviour.
The study of organizational behaviour has certain basic assumptions,
which are listed below:
Assumptions

­an industrial enterprise is an organization of people
­these people must be motivated to work effectively
­the goals of the employee and employer may not necessarily coincide
­the   policies   and   procedures   adopted   may   influence   people   in   the
directions not always foreseen by the policy makers

              Organizational behaviour (frequently abbreviated as OB) is a
field of study that investigates the impact that individuals, groups, and
structure have on behaviour within organizations, for the purpose of
applying   such   knowledge   toward   improving   an   organization's
effectiveness."
                       According  to Fred  Luthans,  "Organizational  behaviour  is
understanding, predicting and controlling human behaviour at work."
           Keith Davis defined “Organizational Behavior is the study and
application of knowledge about how people as individual or as groups
act within organizations.” 
      
                   P.Robbins defined  “A field of study that investigates the
impact   of   individuals,   groups   and   structures   on   behaviour
within   organisations   for   the   purpose   of   applying   such
knowledge towards improving organisations effectiveness”

 It is a field of study
 Studies individuals, groups and structures
 Applies the gained knowledge to work effectively
             Again it can be said that OB is like a tool, by which the mgt.
teams are understood or justified the nature of employees and take an
appropriate decision to lead the organization purport. 
                   At   last  we  can  say  that   OB  is  valuable   for  examining  the
dynamics of relationships with the small groups, both formal teams and
informal groups. 

Organisational Behaviour with other disciplines
                Organizational Behaviour is a unique combination of different
disciplines.   The   predominate   areas   are   psychology,   sociology,   social
psychology, anthropology, political science, and economics.
Psychology

                Psychology is the science that seeks of measure, explain and
sometimes   change   the   behaviour   and   other   animals,   Psychologists
concern   themselves   with   studying   and   attempting   to   understand
individual   behavior.   Many   of   the   theories   dealing   with   personality,
attitude,   learning,   motivation,   and   stress   have   been   applied   in
Organizational Behavior to understand work­related phenomena such
as   job   satisfaction,   commitment,   absenteeism,   turnover,   and   worker
well­being. 
Sociology

                           Sociologists, studying the structure and function of small
groups within a society have contributed greatly to a more complete
understanding   of   behavior   within   organizations.   Specifically,
sociologists have made their greatest contribution to OB through their
study   of   group   behaviour   in   organizations,   particularly   formal   and
complex   organizations.   Some   of   the   areas   within   OB   that   received
valuables   input   from   sociologists   include   group   up   dynamic,
organizational   technology,   bureaucracy,   communications,   power,
conflicts, and intergroup behavior.
Social psychology 

                           Social psychology  is an area within psychology, but blends
concepts from both psychology and sociology. It focuses on the influence
of people on one another. One of the major areas receiving considerable
investigation   from   social   psychologists   has   been   change   ­­­   how   to
implement it and how to reduce barriers to its acceptance. 
Anthropology

                         Anthropology  is a science of man. Anthropologists study
societies to learn about human beings and their activities. Their work
on cultures and environment, for instance, has helped us understand
differences   in   fundamental   values,   attitudes,   and   behavior   between
people in different countries and within different organizations. 
Political science 

                         Political Science as a subject has many ingredients, which
directly   affect   human   behaviour   in   organizations   since   politics
dominates   every   organisation   to   some   extent.  Political   scientists  are
significant to the understanding of behaviour in organizations. Political
scientists   study   the   individuals   and   groups   within   a   political
environment.   Specific   topics   of   concern   here   include   structuring   of
conflict,   allocation   of   power,   and   how   people   manipulate   power   for
individual self­interest. 
Economics 

              Economic environment influences organisational climate. OB
has learned a great deal from such economic factors as labour market
dynamics,   cost­benefit   analysis,   marginal   utility   analysis,   human
resource planning,  forecasting, and  decision making. Economics    has
assisted   students   of   Organizational   Behavior   in   understanding   how
competition for scarce resources both within and between organizations
leads   these   organizations   to   increase   their   commitment   to   efficiency
and productivity
Engineering:

           Industrial Engineering area has contributed a great deal in the
area of man­machine relationship through time and motion study, work
measurement,   work   flow   analysis,   job   design,   and   compensation
management. Each of these areas has some impact on OB.
Medicines:

          Medicines is one of the newest fields which is now being related
to   the   field   of   OB.   Issues   like   work   related   stress,   tension   and
depression are common to both: the area of medicine, and OB.
Semantics: 

                 Semantics helps in the study  of  communications within the

organisation.   Misunderstood   communication   and   lack   of
communication   lead   to   many   behaviour   related   problems   in   the
organisation.   Accordingly,   adequate   and   effective   communication   is
very important for organisational effectiveness

The Importance of Organizational Behaviour
              In any organization one can assume that the main goal of that
business is to succeed; what exactly does being a winning organization
mean and what does it take to get there? In the past companies placed
a great amount of emphasis on the numbers and how to achieve those
numbers. 
              ­The people who actually helped achieve those numbers were
graded on their technical skills, productivity, and budgets. Employees
were moneymaking  machines  and   how they  achieved  those  numbers
was not a concern of their managers as long as the numbers were being
met. 
             ­Organizational behavior studies have become more important
today than in previous years because corporations must learn to adapt
to the rapidly changing business cultures that have stemmed from a
competitive and fast­paced market. 
                     ­Organizational behavior was a topic that was not discussed
until an employee's behavior changed, productivity changed, or sales
decreased. 
            ­In today's business world, managers are paying more attention
to how employees react to situations rather than if they respond. They
are beginning to view organizational behavior as an intricate piece of
training   and   development   of   the   workforce.   Soft   skills   were   never   a
part   of   management   training   and   it   was   rare   that   managers   were
commended for having those skills. 
                     ­In the business world today, organizational behavior is an
essential tool for managing effective teams.
          ­ If one can zone in on an employees' personality, creativity, and
adaptability,   motivating   that   employee   the   way   they   need   to   be
motivated is never a gray area and a guaranteed success.
                 ­Organizational Behavior is a systematic study of behavior of
upper   management,   managers   and   employees   and   its   impact   on   the
performance   of   organization.   The   purpose   of   the   study   is   to   draw
optimum performance from all the employees.
                 ­ In today’s world,  the environment  of business  is  changing
constantly. As a result, the manager has to play increasingly important
role. With recent increase in workload, responsibilities and diversities,
the   importance   of   managers   in   a   working   environment   has   also
increased.
        ­ In order to help managers and supervisors learn more about the
complexity   of   the   new   workforce   many   different   studies   have   been
developed. One area of study that has increased in importance over the
years is the study of Organizational Behavior. 
         ­In   closing,   Organizational   behavior   studies   the   attitudes   and
behaviors of today’s workers and tries to determine the best ways to
effectively manage and change them.
       ­ In order for a company to be successful, management must strive
to   build   friendly   work   environment,   conducive   to   develop   employees
capable of managing their work efficiently. 
           ­The upper management should also demonstrate interpersonal
skills   to   keep   all   the   employees   motivated.   Studying   organizational
behavior can help companies better understand employees which will
eventually lead to a better and more stable company. 
          ­There are various other factors to keep the employees motivated
such   as   transparency,   flexibility   and   honesty   on   the   upper
management’s part.
            Organizational behaviour is one of the most important parts of
management studies. A lot of management thinkers studied this term
and they definitely have come to different opinions as for it. However,
this only adds to the significance of this theory. 

Reasons:
1. Uncover hidden aspects of organization   

               Earlier attitudes, perceptions, relationships are not considered.
Nowadays it is to be considered to increase the productivity.
2. Explain and predict behavior

        OB explains why people behave as they do in organizations. Also
explains   why   motivation   is   necessary.   Helps   to   understands   human
behavior and predict the behavior in future.
3. Acquire “people skills” and win the race

        Study the people skills and apply them in work situations. Also it
helps to diverse the talented people in a right way. So managers should
apply OB’s knowledge intelligently.
4. Formulate informed judgments

             OB   does   not   offer   solutions.   It   can   only   help   in   formulating

informed judgments.

Needs for study of organisational behaviour
            A study of OB is beneficial in many ways. Some of the benefits
of studying OB are following:

1. It helps an individual understand oneself. It is a systematic study of
the actions and attitudes that people exhibit within organisation.
2. It helps managers in getting the work done through effective ways.
3. It emphasizes the interaction and relations between the organisation
and   individual   behaviour,   thus   making   an   attempt   to   fulfill
psychological contract between individuals and the organisation.
4. It helps to develop work­related behaviour and job satisfaction.
5. It helps in building motivating climate.
6. It helps in building cordial industrial relations
7. It helps in the field of marketing through deeper insight of consumer
behaviour, and managing and motivating field employees.
8. It helps in predicting behaviour and applying it in some meaningful
way to make organisation more effective.
9. It implies effective management of human resources.
10.  It   helps   to   improve  functional   behaviour   leading   to  productivity,
effectiveness,   efficiency,   organizational   citizenship,   and   also   helps   to
reduce   dysfunctional   behaviour   at   work   place   like   absenteeism,
employee turnover, dissatisfaction, tardiness etc. 
                    Nature and Scope of Organisational Behaviour:

1. Interdisciplinary Approach: 

                 Organisational Behaviour integrates knowledge from various
relevant   disciplines   for   specific   purpose.   OB   draws   heavily   from
psychology, sociology, and anthropology etc. OB integrates the relevant
contents of these disciplines to make them applicable for organizational
analysis.
2. An Applied Science: 

                   The basic objective of OB is to make application of various
researches   to   solve   organizational   problems,   particularly   related   to
human behaviour aspect. Organisational Behaviour is oriented towards
understanding the forces that affect behaviour so that their affects may
be predicted and guided towards effective functioning of organisation. 
3. Behavioural Approach to Management:

          Organisational Behaviour is directly connected with the human
side   of   management,   but   it   is   not   the   whole   of   management.
Organisational   Behaviour   is  related  with  the  conceptual  and   human
dimensions of management.
4. Concern with Environment: 

               Organisational   Behaviour   is   concerned   with   issues   like

compatibility   with   environment   e.g.   person­culture   fit,   cross­cultural
management etc.
5. Scientific Method:     
                   Organisational Behaviour follows the scientific method and
makes use of logical theory in its investigation and in answering the
research   questions.   It   is   empirical,   interpretive,  critical   and   creative
science.
6. Contingency Approach:

             There are very few absolutes in Organisational Behaviour. The
approach is directed  towards developing  managerial actions that are
most appropriate for a specific situation.
7. A Systems Approach: 

           Organisational Behaviour is a systematic vision as it takes into
account all the variables affecting organisational functioning.
8. Value Centered : 

               Organisational Behaviour is a value­centered science. Research
results   can   be   applied   to   get   organizational   results   which   are
acceptable   by   the   society.   Thus   what   is   acceptable   by   the  society   or
individuals   engaged   in   an   organization   is   a   matter   of   values   of   the
society and people concerned.
9. Utilizes two Kinds of Logic:

             It   utilizes   both   objective   and   subjective   logic.   Objectivity   is

concerned with reaching a fact through empirical analyses. Subjectivity
is concerned with deciding about an issue through intuition, common
sense, experiences, gut feeling, metaphors, learning from stories and
cases, persuasive literature etc.
Organisational   Behaviour   focuses   on   five   levels   of   analysis.
They are:

∙ Individual behaviour

∙ Inter­personal behaviour

∙ Group behaviour and group dynamics
∙ Organizational issues

∙ Environmental issues.

Features of OB
                 Organizational Behavior is the study and use of information
relating   to   the   behaviour   of   the   people   at   work.   Organizational
behavior concentrates on the following:
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. 
Group

                 Individual behaviour and group behaviour are distinctively
observed in an organisation. Group performance is more effective than
individual performance. This synergy is observed in­group 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 channelised towards goal
achievement, it can put in an outstanding performance. 
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 has their own identity and entity. 
Technology

                       Technology results in better work, because it incorporates
technical   skills,   which   encompass   the   ability   to   apply   specialised
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 is developed. 
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.

                      Historical background of OB
Scientific management         

                   The Industrial Revolution that began from the development
of steam power and the founding of big factories in the late Eighteenth
Century   result   in   great   alterations   in   the   production   of   fabrics   and
other products. The factories that developed created great difficulties to
organization that had not existed before. Governing these new factories
and then new entities like railways with the requirement of governing
large   flows   of   material,   staff,   and   information   over   great   distances
caused the need for some ways of dealing with the recent management
problems. 
                  The most significant of those who began to found a science of
management was Frederic Taylor. He was one of the first who tried to
analyze  human  behavior  at  a  work place systematically.  His sample
was   the   machine   with   inexpensive,   interchangeable   details,   each   of
which executes only one certain functions. Taylor tried to do to great
organizations what workers have done to machines. Just as machine
details are easily interchangeable, inexpensive, and passive, so should
people be the same in the machine sample of organizations. 
                 Taylor tried to make a science for every aspect of work and
restrict   conduct   ways   facing   employee.   Taylor   looked   at   interplay   of
human   characteristics,   social   milieu,   objective,   and   physical   milieu,
capacity, speed, duration, and price. The overall purpose was to remove
human alteration. 
                  The outcomes were serious. Efficiency under Taylorism went
up greatly. New departments appeared such as personnel, industrial
engineering,   and   quality   check.   There   was   also   increase   in   middle
management   as   there   developed   a   separation   of   planning   from
controlling. Reasonable rules replaced test and mistake; management
became formalized and effectively grew. 
                   Certainly, this did not happen without opposition. First the
old group of managers opposed the fact that management was a science
to be explored not something that was born with. After that of course,
many employees opposed what some thought the "dehumanization of
work." To be just, Taylor also studied problems such as lassitude and
security   and   urged   management   to   learn   the   relation   between   job
breaks, and the length of the work day and efficiency and persuaded
many companies that the careful performance of breaks and a shorter
day could increase efficiency. 
                    However, the industrial worker with his stop watch and
clip­board, standing over you measuring every little part of the work
and   one's   motions   became   a   hated   person   and   caused   too   much
sabotage and group opposition. 
                     The  basic   elements  of   scientific   management   are  popular
nowadays. While a portrait of a factory of about 1900 might look like as
something  out   of  Dickens,   one  should   not  think   the  basic  notions   of
scientific   management   have   been   forgotten.   They   have   merely   been
changed and improved.
                 While many people consider bureaucracy in negative notions,
this sample in its pure type was a dramatic improvement over the last
sample of organization which was a feudal sample based on arranged
status   and   position   by   birth,   not   disadvantage   and   unquestioned
authority.
The Human Relations Movement.

                    In spite the economic development brought about in part by
scientific   management,   critics   were   calling   attention   to   the   "obscure
side   of   progress,"   which   consisted   of   severe   labour   conflict,   apathy,
weariness, and spent in vain human resources. These notions made a
number   of   researchers   to   study   the   discrepancy   between   how   an
organization was expected to work against how the workers actually
conducted.   In   addition,   notions   like   World   War   I,   progress   in
psychology and later the depression, all resulted into question some of
the main notions of the scientific management school. One of the main
critics of that time, Elton Mayo, said that this "estrangement" appeared
from the violation of the social frameworks caused by industrialization,
the   factory   structure,   and   its   related   results   like   increasing
urbanization. 
The Hawthorne Studies.

                The most known of these studies was the Hawthorne Studies
which displayed how job groups provide mutual backing and efficient
resistance to management samples to increase production. This study
considered   that   workers   did   not   correspond   to   classical   motivational
methods  as it  was  thought  in  the scientific  management  and  Taylor
approaches, but rather employees were also interested in the bonuses
and penalties of their own job group. These studies, led in the 1920's
began   as   a   simple   attempt   to   define   the   relationship   between   work
environment   and   efficiency.   The   outcomes   of   the   research   led
investigators to feel that they had a business with socio­psychological
factors that were not covered by classic theory which emphasized the
formal   organization   and   formal   leadership.   The   Hawthorne   Studies
made us see that an organization is much more than a formal order of
functions but is also a social structure. 
Traditional statements: 

1. People attempt to content one class of need at workplace ­ economic
need;
2. There is no conflict between person and organizational purposes;
3. People act reasonably to maximize bonuses; 
4. People act individually to content individual requirements. 
Human relations statements:

1. Organizations are social structures, not simply technical economic
structures;
2. People are motivated by many requirements; 
3. People do not always think logically;. 
4. People are interdependent; our conduct is often formed by the social
basis; informal work group is the main factor in defining attitudes and
achievement of individual employees;
5. Management is just one factor that influences conduct; the informal
group often has a stronger    influence; 
6. Work roles are more difficult than work descriptions usually suggest;
people conduct in different ways not covered by work descriptions; 
7.   There   is   no   automatic   proportion   between   personal   and
organizational   requirements;   communication   sources   cover   both
economic elements of an organization and personal feelings;
8. Teamwork is basis for collaboration and sound technical solutions; 
9.   Leadership   should   be   changed   to   include   basis   notions   of   human
relations; 
10. Job content leads to higher work efficiency;
11. Management needs efficient social skills, not just technical practice;
 Outcomes of the Hawthorne Studies.

             This research added many notions to the knowledge of human
conduct in organizations and  created  stress for  management to  shift
the   traditional   methods   of   managing   human   resources.   The   Human
Relationships   Movement   jogged   managers   toward   achieving
participative backing of lower levels of the organization in a solution of
organization needs. The movement also encouraged a more open and
trusting   milieu   and   a   greater   stress   on   groups   rather   than   simply
separate persons. 
This gives rise to the importance of OB                  

                Hawthorne Experiments

               The Human Relations Movement began with the Hawthorne
Experiments. They were conducted at Western Electrical Works in
USA, b/w 1924­1932.
Four Parts of Hawthorne Studies / Experiments
Part I ­ Illumination Experiments (1924­27)

                     These experiments were performed to find out the effect of
different levels of illumination (lighting) on productivity of  labor. The
brightness   of   the   light   was   increased   and   decreased   to   find   out   the
effect   on   the   productivity   of   the   test   group.   Surprisingly,   the
productivity   increased   even   when   the   level   of   illumination   was
decreased.   It   was   concluded   that   factors   other   than   light   were   also
important.
Part II ­ Relay Assembly Test Room Study (1927­1929)

           Under these test two small groups of six female telephone relay
assemblers   were   selected.   Each   group   was   kept   in   separate   rooms.
From time to time, changes were made in working hours, rest periods,
lunch breaks, etc. They were allowed to choose their own rest periods
and to give suggestions. Output increased in both the control rooms. It
was concluded that social relationship among workers, participation in
decision­making, etc. had a greater effect on productivity than working
conditions.
Part III ­ Mass Interviewing Programme (1928­1930)

           21,000 employees were interviewed over a period of three years
to  find out  reasons for  increased  productivity. It was  concluded  that
productivity can be increased if workers are allowed to talk freely about
matters that are important to them.
Part IV ­ Bank Wiring Observation Room Experiment (1932)

          A group of 14 male workers in the bank wiring room were placed
under   observation   for   six   months.   A   worker's   pay   depended   on   the
performance of the group as a whole. The researchers thought that the
efficient  workers would put  pressure on the less efficient workers to
complete the work. However, it was found that the group established
its own standards of output, and social pressure was used to achieve
the standards of output.

Conclusions of Hawthorne Studies / Experiments
The   conclusions   derived   from   the  Hawthorne   Studies  were   as
follows:­
1.   The   social   and   psychological   factors   are   responsible   for   workers'
productivity and job satisfaction. Only good physical working conditions
are not enough to increase productivity.
2.   The   informal   relations   among   workers   influence   the   workers'
behavior   and   performance   more   than   the   formal   relations   in   the
organization.
3. Employees will perform better if they are allowed to participate in
decision­making affecting their interests.
4. Employees will also work more efficiently, when they believe that the
management is interested in their welfare.
5.   When   employees   are   treated   with   respect   and   dignity,   their
performance will improve.
6. Financial incentives alone cannot increase the performance. Social
and   Psychological   needs   must   also   be   satisfied   in   order   to   increase
productivity.
7.   Good   communication   between   the   superiors   and   subordinates   can
improve the relations and the productivity of the subordinates.
8.   Special attention and freedom to express their views will improve
the performance of the workers.

Criticism of Hawthorne Studies / Experiments
The   Hawthorne   Experiments   are   mainly   criticized   on   the   following
grounds:­

1. Lacks Validity: 

                 The Hawthorne experiments were conducted under controlled
situations. These findings will not work in real setting. The workers
under observation knew about  the experiments. Therefore, they may
have improved their performance only for the experiments.

2. More Importance to Human Aspects: 

          The Hawthorne experiments give too much importance to human
aspects. Human aspects alone cannot improve production. Production
also depends on technological and other factors.

3. More Emphasis on Group Decision­making: 

         The Hawthorne experiments placed too much emphasis on group
decision­making. In real situation, individual decision­making cannot
be totally neglected especially when quick decisions are required and
there is no time to consult others.

4. over Importance to Freedom of Workers: 

         The Hawthorne experiment gives a lot of importance to freedom of
the workers. It does not give importance to the constructive role of the
supervisors. In reality too much of freedom to the workers can lower
down their performance or productivity                        

                     Models of OB
                 Models deals with real world phenomenon. Focusing on three
level i.e individual, group and organization it is built by considering the
two variables dependent and independent variables.
         Dependent variables are productivity, absenteeism, turnover, job
satisfaction.   Independent   variables   are   individual,   group   and
organization variables.  
       Keith Davis recognizes four different models of OB. These models
show   evolution   of   the   thinking   and   behaviour   on   the   part   of
management   and   managers   alike.   The   four   major   models   or
frameworks that organizations operate out of:

a. Autocratic –            

                 The   autocratic   model   depends   on   power.   Those   who   are   in

command   must   have   the   power   to   demand   “you   do   this­or   else,”
meaning that an employee who does not follow orders will be penalized.
        In an autocratic environment the managerial orientation is formal,
official authority. This authority is delegated by right of command over
the people to it applies. 
        Under autocratic environment the employee is obedience to a boss,
not respect for a manager. 
          (The basis of this model is power with a managerial orientation of
authority. The employees in turn are oriented towards obedience and
dependence on the boss. The employee need that is met is subsistence.
The performance result is minimal
b. Custodial

        A successful custodial approach depends on economic resources. 
               The resulting managerial orientation is toward money to pay
wages and benefits. 
         Since employees’ physical needs are already reasonably met, the
employer looks to security needs as a motivating force. 
               Employees   working   in   a   custodial   environment   become
psychologically preoccupied with their economic rewards and benefits. 
        (The basis of this model is economic resources with a managerial
orientation   of   money.   The   employees   in   turn   are   oriented   towards
security   and   benefits   and   dependence   on   the   organization.   The
employee   need   that   is   met   is   security.   The   performance   result   is
passive cooperation)

c. Supportive – 

         The supportive model depends on leadership instead of power or
money.   Through   leadership,   management   provides   a   climate   to   help
employees grow and accomplish in the interests of the organization the
things of which they are capable. 
               Since   management   supports   employees   in   their   work,   the
psychological result is a feeling of participation and task involvement
in   the   organization.   Employee   may   say   “we”   instead   of   “they”   when
referring to their organization. 
               Employees are more strongly motivated than by earlier models
because of their status and recognition needs are better met. Thus they
have awakened drives for work. 
               (The   basis   of   this   model   is   leadership   with   a   managerial
orientation of support. The employees in turn are oriented towards job
performance and participation. The employee need that is met is status
and recognition. The performance result is awakened drives.)

d. Collegial – 

         A useful extension of the supportive model is the collegial model.
The   term   “collegial”   relates   to   a   body   of   people   working   together
cooperatively. 
       The collegial model depends on management’s building a feeling of
partnership with employees. The result is that employees feel needed
and useful.
           The managerial orientation is toward teamwork. Management is
the coach that builds a better team 
             (The   basis   of   this   model   is   partnership   with   a   managerial
orientation of teamwork. The employees in turn are oriented towards
responsible behavior and self­discipline. The employee need that is met
is self­actualization. The performance result is moderate enthusiasm.)
         Although there are four separate models, almost no organization
operates exclusively in one. There will usually be a predominate one,
with one or more areas over­lapping in the other models. 

Autocratic Custodial Supportive Collegial

Model Power Economic Leadership Partnership

depends resources
upon

Managerial Authority Money Support Teamwork

orientation

Employee Obedience Security Job  responsibilit

orientation y

Employee Dependence Dependence Participatio Self­

psychological on boss on n discipline
result organization

Employees Subsistence Maintenanc Higher­ Self­

needs met e order actualisatio
n

Performance Minimum Passive Awakened Moderate

result cooperation drives enthusiasm
             
                Challenges and opportunities for OB

Introduction
                   It is important to upgrade various types of technical and
managerial   skills   to   remain   competitive   in   business   environment,   to
manage   workforce   diversity   and   to   implement   ways   of   improving
ethical behaviour within the organization at all levels.
                                 The  managers  are posed  with  many  challenges  and
opportunities to use "Organizational Behavior" concepts to enhance the
overall effectiveness of individuals, groups and organization.
                               Some of the issues which need support from behavioral
science and  other  interdisciplinary  fields to offer  creditable solutions
are:
a. Improving People Skills

           The employees and executives are really in need of a boost up to
be   equipped   with   the   required   skills   relevant   to   the  technological
changes,  structural   changes,  environmental   changes  which   are
accelerated at a fast pace. In absence of the fast rack possession, the
targeted goals can't be achieved in time. 
Main skills on focus are 

 managerial skills which include listening, motivating, planning,
organizing, leading, problem solving, decision making  
 technical skills
                   To enhance these skills seminars, training and development
session,  career   development   programmes,   induction   and  socialization
and many more tools and techniques are adopted.
        Designing an effective performance appraisal system with built­in
training modules to help lower level cadres to upgrade their skill sets
(conceptual, relational etc.) would be a remarkable.  
b. Improving Quality and Productivity
         Quality is a parameter which makes a product or service best or
worst for the customers and users. It is a measure of expectation. A
student expects the pen; she/he just bought, to write. The failure of the
pen   to   write   will   express   the   failure   of   the   product   to   meet   the
customer's expectation. 
      "Deming" defined quality as a predictable degree of uniformity and
dependability at low cost and suited to the market.
     "Juran" defined quality as fitness for use.

The key dimensions of quality are:

1.   Performance:  Primary/Perceptual   characteristics   of   a   product   as

signal, coverage, display quality etc. which are visible. 
2. Features:  Secondary characteristics, added features such as alarm
clock added in mobile phones. 
3.   Conformance:  To   meet   specifications   according   to   industry
standards. 
4. Reliability: Probability of a product's failure within a specific period
of time. 
5.   Durability:  Measure   of   product's   life   having   both   economic   and
technical dimensions. 
6. Services: resolution of problems and complaints. 

7. Response: Human­Human interface, such as courtesy of the dealer. 

8. Aesthetics: Sensory characteristics such as exterior finish. 

9. Reputation: Past performance and other intangibles such as being
awarded rank first.
                       Managers confront the challenges of fulfilling the specific
requirements of a customer. Implementing total quality management
and re­engineering products to improve productivity and quality.
c. Total Quality Management (TQM): 
                 It   is   a   philosophy   of   management   driven   by   attainment   of
customer   satisfaction   through   continuous   improvement   of   all
organizational process. 
The components of TQM are
1. Intense focus of customer 
2. Concern for continual improvement 
3. Improvement in the quality of everything the organization does 
4. Accurate measurement 
5. Empowerment of employees
d. Re­engineering: 

                 This refers to discrete initiatives that are intended to achieve
radically   redesigned   and   improved   work   process   in   a   bounded   time
frame. It employees a structural methodology to reduce work process
and   provide   cost   performance   matrices   for   business   process
improvement.
e. Managing Workforce Diversity

                  A manager needs to accommodate heterogeneous categories of
employees   in   a   workforce   from   different   gender,   race,   relation,
community   etc.   The   reason   behind   this   is   to   tap   talents   and
potentialities,   harnessing   innovativeness   and   obtaining   synergetic
effect among a diversified workforce. The major challenge cropping up
here is that various employees try to retain the cultural identity, life
style and other related characteristics which need to be adopted and
preserved by every one among the workforce.
          The management needs to recognize the differences and respond
to   them   accordingly.   If   diversity   is   managed   well,   creativity   and
innovation   can   be   introduced   in   an   organization   else   interpersonal
conflict, difficulty in communicating and high turnover can result due
to biased nature of management.
f. Responding to Globalization

        With mostly market driven business, whenever the demand exists
irrespective   of   distance,   location,   climatic   conditions,   the   business
operations   are expanded  to gain   their   market   share  and   remain   top
ranked. Making maximum use of mass communication, internet, faster
transportation, products and services are spreading across nations. 
Example of such globalization is "more than 95% of Nokia cell
phones are being sold outside of their home country Finland".)

Globalization affects a manager in,
 A   manager   has   to   manage   a  diversified   workforce  that   is
likely to have very different needs, aspirations and attitudes from
the ones that they are used to manage in their home country.  
 Understanding   culture   of   local   people  in   order   to   adapt
appropriate management style for the success the operations. It
is important for the manager to show tolerance to sensitivity to
various individual in the workforce.
g. Empowering People

        The main concern is to delegate power and responsibility to lower
level   workforce   and   assigning   more   freedom   to   make   choices   about
their   schedules,   operations,   procedures   and   method   of   solving   their
work related problems.
                 The implementation of empowerment concept brings around
reshaping   of   relationship   between   the   manager   and   the   employees
where the manager works as a coach, advisor, sponsor, facilitator
and a guide.

                               The manager  must  learn how to give up  control and

employees   must   learn   how   to   take   responsibility   for   their   work   and
make better decision. This in many cases brings change in leadership
style.
h. Coping with 'Temporariness'

                The product life cycles are slimming up and thus the methods
of operations are improving and fashions are changing very fast. This
rapid   changing   era   brings   a  temporariness  feel   among   the
organization's environment. The very long periods of stability is lost in
the recent years due to competitiveness in providing better experience. 
Actual jobs that workers perform are in a permanent state of flux so
they need to upgrade their knowledge and skill sets.

i. Stimulating Innovation and Change

               Today's successful organizations must foster innovation and
be proficient in the art of change; else they will become extinct in due
course   of   time   and   vanish   from   business.   Flexibility   needs   to   be
maintained at all times along with continually improving their quality
and   handle   constant   competition.   The   managers   need   to   stimulate
employee's creativity and tolerance for change.
j. Emergence of E­Organization

Some important aspects that need to be discussed here are
 E­Commerce:

         This refers to the business operations involving electronic mode of
transactions encompassing presenting products on websites and filling
order. Online shopping is a point of focus for media.
 E­Business: 

         It refers to the full breadth of activities included in a    successful
Internet­based enterprise. E­Commerce is a subset of e­business which
includes  developing   strategies  for  running  Internet­based   companies,
creating   integrated   supply   chains,   collaborating   with   partners   to
electronically coordinate design and production, identifying a different
kind of leader to run a 'virtual' business, finding skilled people to build
and   operate   intranets   and   websites   and   running   the   administrative
side. 
  Growth rate of e­business: 

         The application of internet operations are initially covers a small
part of the business. A popular application of e­business is merely using
the   internet   to   better   manage   an   ongoing   business.   E­business
applications   are   also   helping   in   improving   communications   with
internal   and   external   stakeholders   and   to  better   perform   traditional
business functions. 
        This is even becoming a government concern to use it for providing
utility services through internet.
k. Improving Ethical behavior            

        The complexity of business operations is forcing workforce to face
ethical dilemmas, where they are required to define right and wrong
conduct in order to complete their assigned activities. The ground rules
governing   the   constituents   of   good   ethical   behaviour   has   not   been
clearly   defined.   Blurring   out   of   differentiation   between   right   things
from wrong behaviour becomes a dent in an organization.
                 The managers must evolve code of ethics to guide employees
through  ethical  dilemmas.  Organizing   workshops,  seminars,  training
programs help improving behavior of employees.

        It is the duty of every individual to keep the climate within
an organization healthy in terms of ethics and principals and
maintain minimal degree of ambiguity.

Reference
http://www.cognobytes.com/mgmt/ob/introduction­to­organizational­
behaviour/challenges­and­opportunities
1. Davis, Keith, Organizational Behavior, 3rd edition 
2. Peter Drucker, Management tasks, Responsibilities, practices (1974) 
3. Douglas McGregor, The Human Side of Enterprise, McGraw­hill