1.

INTRODUCTION

What is Organizational behaviour?

OB is a way of action , basically goal oriented. In other
words behaviour is motivated by the desire to attain
specific goal of the organization.
OB is concerned with the behaviour of people at work or
in the organization as it relates to the organization and
its performance or the effectiveness.
OB is concerned with the human behaviour working in
the organization.
OB refers to the action and activities of people
employed to run and manage an organization
and their impact on performance.
 DEFINITIONS

“OB is directly concerned with the understanding, prediction and

control of human behaviour in organizations” – Fred Luthans
“ it 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 towards improving the
organization’s effectiveness” – Stephen Robbins
“OB is the study and application of knowledge about how people
act within organization. It is a human tool for human benefit. It
applies to the behaviour of the people in all types of organization
such as business, government, schools, and service
organizations” –Keith Davis.
“OB is concerned with systematic study of actions and activities
of the people, individuals, and groups employed to run and
manage organization together with the influences on them and
their impact on behaviour with in the organization with a view to
improve its performance or effectiveness” - S K Kapur
The definition of word OB emphasis on three features
1] OB is the study of human behaviour
2] The study of behaviour in organization
3] Knowledge about human behaviour must be useful in
improving the organization’s effectiveness.

The definition suggest that

1] It is a field of study
2] It investigates the actions and activities
3] It is decision making process
4] It is concerned with application of knowledge to set the goals of
the organization.
5] OB is performance related and goal oriented
6] OB is a way of thinking.
 Advantages

OB helps in
1.analyzing human behaviour
2.understanding human behaviour,
3.directing human behaviour
4.controlling human behaviour
5. and adapting for changing the
environmental condition
to improve the effectiveness of
organization towards the achievement
of goals.
 SCOPE OF OB

The 12 major components of OB are

1.human behaviour,
2.group and group dynamics,
3.motivation,
4.leadership,
5.communication,
6.organization structure,
7.organizational culture,
8.organizational change and development,
9.human resource policies and practices,
10.conflict
11.stress management,

12.power and politics.

 ELEMENT OF OB.
There are four element of OB.
1.People, 2. Structure, 3. Technology, and 4. Social system
1] People –
individual or group, small or large, official or unofficial or formal or
informal.
2] Structure –
It defines the formal relationship of people within the organization.
Different people are required to perform different role and duties. It
leads to division of labour. All the people are inter- related or inter
connected to achieve the goals in coordinated manner. Thus structure
is related to power and duties & responsibilities.
3] Technology –
It provides the physical and economic conditions of organization. The
nature of technology depends on the nature of organization and
working conditions.
4] Social System –
this influences the attitude of people, their working conditions and
provides the competitions for resources and power.
 IMPORTANCE OF STUDY

OB focuses on
1.the improvement of productivity,
2.reduction in absenteeism,
3.reduces the turn of labour / staff and

4.increases employee job satisfaction.

 Fundamental concept of OB
1] Nature of people –
There are four basic assumptions about people
– individual differences
– whole person
– caused behaviour (motivation)
– Value of person (human dignity )
2] Nature of organization –
There are two assumptions about the nature of organization i.e
– assumption of social system
– assumption of mutual interest.
Social system
The activities in organization are governed by social laws and
psychological laws.
People have social role and status. Their behaviour is influenced by
group and individuals.
There are two social systems Formal and informal. All the parts of
social system are inter connected and inter dependent.
This makes the human behaviour complex in organization.
Mutual interest –
It is essential for developing the OB.
It encourages the people to attack organizational problem.
Interest of the people and organization must co-exist

Fundamental concepts of OB –
OB is an applied behavioural science.
Following Six branches of sciences contribute to the OB
1] Psychology,
2] Sociology,
3] History,
4] Anthropology,
5] Political Science,
6] Econoimics
1] Psychology,
This science has great influence on OB.
It focuses directly on understanding and predicting individual
behaviour.
This has contributed to the intra-personal dynamics of human
behaviour.
Topics like personality , perception, attitude, opinions, learning
and motivation describe intra – personal aspect of OB
2] Sociology,
Sociology is the study of people in relation to their fellow
human being.
It has made the contribution to under stand the group dynamics
within the organization.
The topics derived from sociology include group dynamics,
formation of groups, communication, formal and informal
organization etc.
3] Anthropology,
It is the study of societies to learn about human being and their
activities.
It helps us to understand differences in fundamental values,
attitudes and behaviour between people in different regions
and organizations.
Anthropology studies the culture .organization create a culture
that influences the way organizational member think about the
organization and how they should behave.

4] Political Science,
It studies the behaviour of individual and groups within the
organization.
The topics like conflict, allocation of power etc are topics of
concern.
 CHALLENGES FACED BY MANAGEMENT
1] Work force Diversity
this means the situation that exist when member of group differ from
each other in terms of age, gender, race, education, values, belief
and culture . If diversity is managed properly it can increase
creativity and innovations. If not manage properly can result higher
labor turn over, inter personal conflict and ineffective
communication.
2] Changing demographics of work force
Increasing number of youth & female joining industries, opportunity
of employment to husband and wife have changed the
demographics. Such employees are to be handled carefully.
3] Changing employee expectations
Employee expect equality with management. Employee expectations
have undergone drastic change and he expect job security,
attractive pay package, housing, equqlity and quality of work life.
4] Ever expanding globalization

Globalization has made managing men more complex. Manager

have to manage workforce under various situation in his own
country as well as in other country.
In his own country managers have to work with people of different
culture. Manager has to modify his practice to face different
challenges
5] Improving the quality
The major challenge is to offer of quality product and services to
customer and client.
Why to study OB?
1] To understand ourselves & others,

2] To improve inter personal relations,

3] To maintain friendly & cordial relations between Employee &

management

4] Helps the manager to know individual employee

5] Helps to motivate the workmen

6] Helps to apply appropriate motivational technique

7] OB helps to tackle human problems

8] Helps to understand the cause of the problems

9] Helps to predict future course of action

10] Helps to controls its evil consequences

11] Helps to create peace & harmony in organization

12] To learn to predict human behaviour

13] It implies for effective utilization of work force

14] Enables the managers to inspire and motivate employees towards

higher productivity & better results
 HISTORY
Mile stone in the history of OB
Beginning of 19th century
Worker had to work inhuman working condition i.e heavy work load,
long working hrs, low wages, unhygienic working condition, poor
illumination & ventilation, no welfare measure etc

Industrial Revolution
It brought about materialism, discipline, monotony, boredom, job
displacement, work interdependence and other related behavioral
phenomena.
Industrial revolution led to increase in production, increase in wages
followed by job satisfaction and decrease in working hrs.
Robert Owen,(1800AD), owner of Welsh factory was first to
emphasis the needs of his employees. He was considered “father of
personnel administration”.
He refused to employ young children, educated his workers about
cleanliness.
Andew Ure(1835) a pioneering behavioural scientist published his work on
“Philosophy of Manufacturers”
He recognized 3 factors as apart of manufacturing, mechanical factor,
commercial factor and human factor.
He provided tea, medical treatment, fan for ventilation and sickness
payment to his workers.
In india also J N Tata took interest in the welfare of his workers. His welfare
scheme included humidifiers, fire sprinklers, introduction of pension fund,
accident compensation.
Elton Mayo conducted “Hawthorne” experiment during 1924 to 1932.
He concluded
that worker’s sentiments and behaviour were closely related to each other,
That group influences the behaviour of the individual,
That group standards are highly effective in establishing the individual out
put,
Money was lesser factor in determinng workers output.
Eltom Mayo conducted four separate experiment during 1924 to 1932.
1] Illumination Experiment

2] Relay assembly Test Room Experiment

3] Experiment in interviewing Workers,

4] Bank wiring Room Experiment.

1] Illumination Experiment(1923-1924)
It was conducted in textile industry. It was study of groups in which
levels of illumination varied but the other condition remained constant.
The purpose of the study was to examine the effect of illumination on
quantity, quality and efficiency. it was observed that out put decreased
with the illumination.
2] Relay assembly Test Room Experiment
In this experiment the group were put separately on the basis of
different working conditions. The variables included work room
temperature, humidity, work schedule, rest period, and food
consumption. Five women chosen for this experiment and their time
was measured for assembly of parts. It was observed that attitude
and sentiments were important factors. The efficiency did not
affected but remained same.

3] Experiment in interviewing Workers,

During 1928, researchers began to contact workers and interviews
were conducted. More than 20,000 workers were interviewed. It was
found that workers talked freely without any hesitation. The
researchers found relationship between formal and informal
organization and groups. This led to understand social,
interpersonal and interpersonal dynamics of people at work.
4] Bank wiring Room Experiment
Through this experiment it was found behavioral norms set by the
workers had influence over the productivity of the group. Higher the
norms higher the productivity was observed. This experiment
confirmed the effect of group power and importance of group
influence on worker behavior and productivity.
100 years of progress in OB
1890’s Fredirick Taylor’s development of scientific management

1900’s Max Weber’s concept of bureaucracy and protestant ethic

1910’s Walter Cannon’s discovery of Emergency (stress) Response

1920’s, Elton Mayo’s Hawthorne experiments in textile industry, relay

assembly room, bank wiring room etc

1930’s Kurt Lewin’s, Ralph White’s leadership study

1940’s Maslow’s motivation theory

Skineer’s formulation of the behavioral approach,
Charls Walker & Roberts Guest’s study of routine work
1950’s Ralph Stogdill’s Ohio State Leadership study
Douglas McGregor’s examination of human side of enterprise
Herzberg’s two factor theory of motivation and job enrichment

1960’s Turner and Lawrence study of divers industrial job

Robert Blake’s & Jane Mounton’s managerial grid
Patrica Cain smith’s study of satisfaction in work and retirement
Fred Fiekler’s contingency theory of leadership

1970’s J R Hackman’s & Greg Oldham’s job characteristics theory

Robert House’s path goal & cherismatic leadership theory

1980’s Peter Block’s political skills for empowered manager

Larry Hurschhorns team work approach
Charls Manz’s self managed work team theory
Edgar Schein’s leadership & organizational culture theory
 Different Models of OB
There are four models of OB
1] Autocratic Model,
2] Custodial Model,
3] supportive Model and
4] Collegial Model

1] Autocratic Model
This model has its roots in the history especially industrial revolution.
This model depends on power. The basic principle of this model was
“might is right”. Employee has to follow the orders of their boss or to
face the action or penalty. It is threatening based on negative
motivation and backed by power. The theory is based on the
assumption that management knows what is right and wrong and
employee has to follow the orders without grumbling. Employee
cannot suggest changes, ask question or interpret. Management
assumes that employees are passive and resistant to organizational
needs. Under this theory the employees are fully dependent on their
superiors. Employees are always offered minimum wages. The main
draw back of this theory is that people are exploited by the superior.
2] Custodial Model
This model is based on the economic resources of employers.
Employees under the autocratic style do not back to the bosses and
think bad about the system. Such employees develop frustration
and aggression. This made the managers think how to develop
better employee satisfaction and security. This called for
introduction of welfare programmes to satisfy security needs of
employee. Welfare programmes lead to employee dependence on
the organization. Thus the custodial approach brought security and
satisfaction but employees were not motivated to increase their
capacities. The researcher observed that happy employee is not
necessarily the most productive employee. This provided a
foundation for the evolvement of new model of OB.
3] Supportive Model
This model is based on leadership and not on money or authority. It
is the managerial leadership style that provides an atmosphere to
help employees grow and accomplish their task successfully. The
manager believe that workers become ready to share responsibility,
develop a sense to contribute and improve themselves. Under
supportive approach the organizational and individual goals are
achieved by employees job performance. This model of OB found
more useful and effective in developed nation bus less effective in
developing & under developed nations.

4] Collegial Model
This model s an extension of supportive model. This model is related to
team work or team concept. The basic foundation of this model lies
on the management’s efforts to develop feeling of partnership with
employee. Under this model employee becomes self discipline.
Feeling of self discipline creates the feeling of team work.
Conclusions from different models are
1] No one model is best for all the time.

2] Society advances on need of hierarchy and new models are

developed.

3] The present tendency towards more democratic models of OB and

will continue in long run.

4] Different model will remain in use.

 SUMMARY OF FOUR MODELS

Autocratic Custodial Supportive Collegial

Basis of model Power Economic Leadership Partnership

Resources
Managerial Authority Money Support Team Work
Orientation

Employee ObedIence Security and Job Responsible

Obligation Benefits Performance Behaviour
Employee Dependence Dependence on Participation Self Discipline
Psychological on boss organization
Result
Employee needs Subsistence Security Status and Self
met recognition actualization
Performance Minimum Passive Awakened Moderate
Results Cooperation Drives enthusiasm
 THE S-O-B-C MODEL
In order to identify major variables in Ob and to show how they
relate to one other S-O-B-C model is used.
S – Stimulus, O – Organism, B – Behaviour, C – Consequences
The frame work of this model is based on social learning.
OB model suggests that internal cognition (O) lead to behaviour (B).
According to this model, causes for behaviour, behaviour itself and
effects of behaviour can be observable or non observable.
This model can meet the goals of the organization.the S –O portion
deals with understanding and B-C portion deals with prediction and
control.
In order to promote the study and application of various concepts of
OB one institute has been established which is known as Indian
Society of Organizational Behaviour (ISOB) . The HQ is at
Bangalore and regional centers at Kolkatta, New Delhi and Baroda.
 Indian Society of Organizational Behaviour (ISOB)
In order to promote the study and application of various concepts of
OB one institute has been established which is known as Indian
Society of Organizational Behaviour (ISOB) . The HQ is at
Bangalore and regional centers at Kolkatta, New Delhi and Baroda.

Objective of ISOB
1] To organize into an association
2] Disseminate knowledge of OB
3] Promote and safeguard the status of specialist
4] Promote the study of OB
5] Elevate and establish the standard of competence
6] coordinate with other professional agencies
7] confer the fellowship in OB
8] develop and promote training programmes
Two more associations exist in India.

1] Transactional Analysis Society of India with HQ in Mumbai.

Objectives of TASI are identical to that of ISOB

2] Indian Society for Applied Behavioural Science (ISABS) having HQ

at Hydrabad.
It is non-profit organization of behaviourable scientist engaged in
applying their knowledge to the well being of persons and
organization.
The members of the ISABS work as an independent consultants,
trainers, counsellors, academicians, community change agents and
personnel managers.
 THANK YOU.

END OF CHAPTER 1