Introduction to Organizational

Behavior
• Introduction
• Organizational Behavior (OB) can be defined as the understanding,
prediction and management of human behavior both individually or
in a group that occur within an organization.
OR
• Organizational behavior is the study of how individuals and groups
interact within an organization and how these interactions affect an
organization’s performance toward its goal or goals.
• Goals of Organizational
Behaviour
Organizational behaviour is an applied science that deals with individual behaviour as
well as group behaviour in an organization. The four goals of organizational behaviour
are to describe, understand, predict and control.

1. To describe: The first objective is to describe how people behave under various
conditions. For example, as a manager, I have information about a particular junior
officer that he comes office in late and leaves the office early.

2. To understand: The second goal of organizational behaviour is to understand why

people behave as they do. Managers have to understand the reasons behind a particular
action. For example, as a manager, I must find out the reason why the junior officer is
coming late and going earlier.
 Cont….
3. To predict: Predicting future behaviour of employee is another goal of organizational
behaviour. Usually, managers would have the capacity to predict why the employees are committed
to the organization or not. For instance, I have to realize why he wants to leave my organization,
how I can hold the officer in my organization, what should be done by me in this situation or what
my role is etc.
• 4. To control: The final goal of organizational behaviour is to control and develop a friendly
atmosphere for the organization. Since managers are responsible for the overall performance of
an organization, they must develop workers’ teamwork, skill and commitment. Managers should
take necessary action for themselves. In the above case, I can increase the financial benefits of
the officer if it is not satisfactory for him or I can help him to solve his personal problem, or I can
negotiate him to solve any organizational problem.
Importance of Organizational
Behaviour
OB provides a road map to our lives in organizations.
OB uses scientific research to understand and make organization life, as
it helps to predict what people will do under various conditions
It helps to influence organizational events - to understand and predict
events
It helps individual understand herself/ himself in better fashion.
It helps manager to manage human resources effectively. Eg. Motivation
It helps organizations for maintaining cordial industrial relations.
• It is also useful in the field marketing.
Forces or Elements of OB
• ELEMENTS OF ORGANISATIONAL BEHAVIOU
1. People: People make up the internal and social system of the organization. They consist of
individuals and groups. The groups may be big or small; formal or informal; official or unofficial.
Groups are dynamic and they work in the organization to achieve their objectives.
2. Structure: Structure defines the formal relationships of the people in organizations. Different
people in the organization are performing different type of jobs and they need to be related in
some structural way so that their work can be effectively co-ordinated.
3. Technology: Technology such as machines and work processes provide the resources with which
people work and affects the tasks that they perform. The technology used has a significant
influence on working relationships. It allows people to do more and work better but it also
restricts’ people in various ways.
4. Social system: All organizations operate within an external environment. It is the part of a larger
system that contains many other elements such as government, family and other organizations.
All of these mutually influence each other in a complex system that creates a context for a group
of people
Contd……
• Taylor Advocated the following elements of scientific management.
• 1. Work Study,
• 2. Standardisation of Tools and Equipment,
• 3. Scientific Selection, Placement and Training,
• 4. Development of Functional Foremanship,
• 5. Introducing Costing System,
• 6. Mental Revolution.
Evolution of OB
• Organizational evaluation “measures, compares and analyses the
coherence between results and specific objectives and between
specific objectives and general objectives of institutional projects,
programmes or plans”.
• F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of
scientific management’ proved with his practical theories that a
scientific method can be implemented to management. Taylor gave
much concentration on the supervisory level of management and
performance of managers and workers at an operational level. Let’s
discuss in detail the five principles of management by F.W Taylor.
1. Bureaucratic approach
1. The bureaucratic politics approach argues that policy outcomes
result from a game of bargaining among a small, highly placed
group of governmental actors.

2. Hawthorne studies
• The main conclusion of the Hawthorne studies was that worker
productivity changed based on the fact that workers were being
observed.
Basic OB models
1. The Autocratic Model
• This model depends on power and an employee who does not follow
orders will be penalized.
• What is paramount for the employee is obedience to a boss, not
respect for a manager.
•The boss pays minimum wages because minimum performance is
given by employees as a result.
• Some employees give higher performance because of internal
achievement drivers (personally like their boss, the boss is a natural-
born leader, or other factors).
2. The Custodial Model
This approach depends on economic resources and focused 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.
• If an organization does not have the wealth to provide pensions and
pay other benefits, it cannot follow a custodial approach.
3. The Supportive Model
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
which they are capable.
Employees will take responsibility, develop a drive to contribute, and
improve themselves if management gives them a chance.
• Management orientation is therefore, to support the employee’s job
performance rather than to simply support employee benefit
payments.
4. The Collegial Model
The collegial model depends on the management building a feeling of
partnership with employees (people working together cooperatively).
Managers are seen as joint contributors rather than bosses, and the
coach that builds a better team. As a result, the employee’s response to
this situation is responsibility.
The psychological result of the collegial approach for the employee is
self-discipline.
• Employees usually feel a degree of fulfilment, worthwhile
contribution and self-actualization.
5. The System Model
Since employees are being asked to spend many hours of their day at
work, they want a work context that is ethical, infused with integrity and
trust, and able to provide an opportunity to experience a growing sense
of community among co-workers.
To accomplish this, managers must increasingly demonstrate a sense of
care and compassion, being sensitive to the needs of a diverse workforce
with rapidly changing needs, and complex personal and family needs.
• Therefore, employees go beyond the self-discipline of the collegial
approach until they reach a state of self-motivation, in which they take
responsibility for their own goals and actions.
Comparison of OB Models
Fundamental Concepts Of OB
1. Individual differences
People are different not only physically such as sex, age, height, weight,
complexion and so on, but also different in their psychological traits e.g.
intelligence, attitude, motivation, personality, needs and perception.
The management has to treat each individual differently to get the best
out of them.
• The diversity of people needs to be recognized and viewed as a
valuable assets to organizations.
2. A whole person
• Organization need to recognize that an individual not only comes with
skills and intelligence but also a personal life, needs and desires.
• A person’s personal life cannot be separated from his work life since
people function as human beings.
• If the whole person can be developed, then benefits will extend
beyond the firm into the larger society in which each employee lives.
3. Motivated Behaviour
Motivation is essential for the proper functioning of organizations and
an organization can show its employees how certain actions will
increase their need for fulfilment.
A path toward increased need fulfilment is the better way of enriching
the quality of work.
• People are motivated not by what others think they ought to have but
what they themselves want.
4. Human dignity/Value of the
person
People want to be treated with care, dignity, and respect and are
increasingly demanding such treatment from their employers. They
want to be valued for their skills and abilities and to be provided with
opportunities to develop themselves.
An employee wants to be treated separately from other factors of
production and they refuse to accept the old idea that they are simply
treated as economic tools.
• Humans are the best creation of God and they want to be treated
with respect, dignity and other things from their employers and
society.
Nature of organization
1. Social system
The individuals of a society are considered as a system organized by a
characteristic pattern of relationships with a distinctive culture and
values.
In organizations, people have social roles and status, and their
behaviour is influenced by their group’s individual drives.
• An organizational environment in a social system is dynamic and all
parts of the system are interdependent.
2. Mutual interest
Mutual interest provides a superordinate goal one that can be attained
only through the integrated efforts of individuals and their employees.
Organizational relationships are most likely to be strong if different
groups can negotiate strategies in which the interests are common to
both parties and are related to the accomplishment of their respective
goals.
• Individuals who have shared mutual interests are likely to make their
organization the strongest, because even though their views may be
different, they still have a shared concern for similar objectives.
APPROACHES TO
ORGANIZATIONAL BEHAVIOUR
I. Human Resources Approach
This approach concerned with the growth and development of people
towards higher levels of competency, creativity and fulfilment because
people are the central resource in any organization.
• This approach helps employees become better in terms of work and
responsibility and subsequently tries to create a climate in which they
can contribute to the best of their improved abilities
2. Contingency Approach
Different situations require different behavioural practices for
effectiveness instead of following a traditional approach for all
situations.
Each situation must be analysed carefully to determine the significant
variable that exist in order to establish more effective practices.
• 3. Productivity Approach
• Productivity is considered to be improved is more output can be
produced from the same unit of output. However, besides economic
input and output, human and social input and output are also
important.
4. Systems Approach
• This approach emphasizes the interdependence of each of these
elements (people and technology) within the organization if the
organization as a whole is to function effectively.
• This approach is also emphasizes on the interaction between the
organization and its broader environment which consists of social,
economic, cultural and political environment within which they
operate.
• Two ways of dependent:
• Dependent on the environment to provide input.
1. Dependent on the environment to accept the output.
4. Interdisciplinary Approach
• This approach advocates that efficiency can be attained by finding the
right methods to get the job done through specialization on the job by
planning and scheduling, by using standard operating mechanisms,
establishing standard time to do the job, by proper selection and
training of personnel and through wage incentives.
ORGANIZATIONAL BEHAVIOUR,
GLOBALIZATION AND
DIVERSIFICATION
The multinational operations of businesses add new dimensions to
organizational behaviour, as it is a step into different social, political and
economic environments.
• Therefore, the social, political, cultural and workforce differences
among countries influence international organizational behaviour in
various ways.
2. Political Conditions
• These include instability of government, restricting industries to a
particular area and nationalistic drives such as self-sufficiency in latest
technologies.
• 3. Economic Conditions
• Less developed nations are low per capita income and rapid
inflation, and these influence the introduction of advanced
technology and sophisticated organizational systems.
4. Cultural Differences in an
Organization
• The cultures are determining the work-related attitudes and these
includes the following:
5. Workforce Diversification
• The managerial personnel entering another nation need to adjust
their leadership styles, communication patterns and other practices to
fit their host country.
• Diversity encompasses all forms of differences among individuals
including culture, gender, age, ability, religious affiliation, personality,
economic class, social status, military attachment and sexual
orientation.
• However, it also cause resistance to change, cohesiveness,
communication problems, conflicts, and decision-making issues.
ORGANIZATIONAL BEHAVIOUR
AND TECHNOLOGICAL
ADVANCEMENT
Each technological advancement adds pressure on organizational
behaviour to maintain a delicate balance between technical and social
systems.
• Technology has started affecting the very nature of management,
such as developing their technical competency and that of their
workers, motivating employees for reinvention, dealing with
employees’ stress, depression and anxiety, and helping employees to
adjust to technological changes.