Organizational Behavior

Module II
BBA I SEM
Organizational Behavior
 Course Description

This course entails approaches and processes that can

help in effectively leading and managing others in
organizations. Students will have the opportunity to
appreciate what it takes to make a difference in their
organization. The emphasis will be on creating
effective leaders and team members through a better
understanding of OB concepts
 Course Objectives/Learning outcome
• Understand various dimensions of individual behavior
in organizations.
• Examine processes used in developing communication
and resolving conflict.
• Appreciate the fundamentals of leading, managing,
and collaborating with others in the workplace and
apply them in organizational context
 UNIT-1
Organizations and organizational behaviour
• Introduction to organization
• Define organizational behavior and organizations.
• Explain why organizational behavior knowledge is important for you and for
organization and managers
• Discuss the managers roles and skills.
• Summarize the workplace trends of diversity and the inclusive workplace,
work–life integration, remote work, and emerging employment relationships.
• Describe the four factors that directly influence individual behavior and
performance.
 Organizational Behavior and Organizations
• Organizational behavior (OB):
– Studies what people think, feel, and do in and around
organizations.
• Organizations.
– Groups of people who work interdependently toward some
purpose.
 Meaning of OB
• The Dictionary meaning of the term organization is something
that is organized . It could be a family ,school ,football team or
a corporation or government . An organization is a social unit
with some specific purpose.

• The basic element of organizations have remained the same

over the years . Organization have purpose attract people,
acquire and use resources to achieve the objects ,use some
form of structure of divide and co-ordinate activities and rely
on people to lead or manage others
 Concept of OB!
• OB Is the study and application of knowledge about how people act in
an organization – As individual and as groups .

• Organizational behavior is a scientific discipline in which a large

number of tools are used for analysis purpose.
• It helps manager to look at the behavior of individuals ,group and
structure .
• OB is concerned with the study of what people do in an organization
and how that behavior affects the performance of the organization .
 Introduction to organization Behaviour of OB!
• OB is the study of individual behaviour in isolation,
when in group and as a part of an organisation. The
study of individual behaviour only, would be
incomplete because behaviour is affected by the
people surrounding us as well as by the organisation,
in which we work. Studying only individuals or only
organisations would be of no use. It is essential to
study both simultaneously.
Introduction to organization Behaviour of OB!
• Personality, perception, learning, attitude, family background,
training, motivation, job satisfaction, performance appraisal,
leadership effectiveness, norms, values and ethics are the
factors which affect the individual behaviour. Group dynamics,
communication, organisational environment, individual and
organisational culture affect group behaviour. Organisational
structure, power & politics, status, relation with juniors &
seniors, conflicts and culture affect the individual behaviour in
the organisation.
 Definition of organization Behaviour

• In words of Stephen P. Robbins, “OB is a field of study that

investigates the impact that individuals, groups and
structures have on behaviour within organisations for the
purpose of applying such knowledge towards improving an
organisation’s effectiveness.”
• In words of K Aswathappa, “OB is the study of human
behaviour in organisational setting, of the interface
between human behaviour and organisation and of the
organisation itself.”
 Managers of an organization is required to have complete
knowledge and information's about the following facts:-
• When do two people (Co-workers, or a supervisor –subordinate interact?)

• When do two or more groups need to coordinate their efforts?

• What complexities are involved in inter-personal relations?

• Why some employees are more successful than others?

• How can we act as a team?

• How to handle the stress of workers –superiors and subordinates?

 Need of Organization Behavior

• Organization is a coordinated social unit, composed of two or more

people, which functions to achieve a common goal. Managers are
responsible for the functioning of the organization.

• Managers get the work done through people. They allocate the resources,
direct the activities of others, and take decisions to attain organizational
goals

• The world has become a global village Now a days .Understanding

Organizational Behavior has become very important for managers today.
Globalization has presented challenges and opportunities for Organizational
Behavior.
 Need of Organization Behavior

• Various changes such as increase in the number of women employees, corporate

downsizing, increase in number of temporary workers are taking place in the
organizations.

• Business is shifting to where the technology is. One can say that Business has become
technology driven. There are a lot of challenges and opportunities for managers to use
organizational behavior concepts.

• Organizational Behavior focuses on how to improve productivity, reduce absenteeism,

turnover and deviant workplace behavior and increase organizational citizenship
behavior and job satisfaction.

• It is concerned with the study of what people do in an organization and how their
behavior affects the organizations performance.
Importance 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.
 Organisational Behaviour – Principles

• Applying the knowledge of organisational behaviour in

management is to make management more purposeful
and practical. Management is managing the activities
of people. When dealing with an individual, it is of vital
importance to understand the individual and his
behaviour.
 Organisational Behaviour – Principles

• Organisational behaviour is based mainly on two

main principles:

• Nature of the people, and

• Nature of the organisation.
 Nature of the People:

In this, we have to know the:

• Individual differences,
• Whole person
• Caused behaviour, and
• Human dignity.
 Nature of the People:

• Individual Differences:

Every individual is different from the other in respect of intelligence, habit,

nature, attitude, etc. This individual difference is the outcome of his
psychological aspects. Organisational behaviour is a part of psychology.

• Whole Person:
An individual is a whole person with physical and psychological aspects.
Therefore, we cannot deal with a person by part. For example, an employee
working in an organisation has a lot of personal problems worrying him. It is
not possible for him to perform the work by keeping away these problems
at home and work efficiently with his physical capability alone.
 Nature of the People:

• Human Dignity:
People in an organisation have some strong beliefs and
possess certain value systems of their own. Let it be a
manager or a worker; each possesses the dignity of his
position and role in the organisation. An individual, who
possesses a strong value system may not compromise it
simply, as such he has to be given the deserving value
and recognition. Related approach of OB and
management will be of great help in such a situation.
 Nature of Organisation:

• Nature of organisation has two aspects:

• Social system.
• Mutual interests.
 Nature of Organisation:

• Social System:

Organisational activities are controlled by social and psychological norms.

People have psychological needs and motives, at the same time, they are
bound to shoulder social responsibility, according to their role in the
organisation.
 Nature of Organisation:

• Mutual Interests:

These always bring cooperation and confidence among people. It is the source of sound
organisational behaviour. People and organisation are interdependent like OB and
management. People need organisation for livelihood on the other hand, the organisation
needs people for achieving its goals. So the relation between OB and management can
bring all round progress, if both have amiable relationship between them.
 Key Factors Affecting Organisational Behaviour:

• OB is the study of individuals, groups and organisations

for better understanding and production of desired
results. The factors which affect the individuals, groups
and organisations affect the organisational behaviour
also. Along with that, the technology which is adopted
in organisations and the environment surrounding, the
organisation also affects the OB.
 Key Factors Affecting Organisational Behaviour:

Individual

• People are valuable resources of every organisation.

Individual is the most important component of OB. In
fact, the study of OB revolves around individual,
intrapersonal forces, study of interpersonal forces and
study of an individual in an organisational setting.
 Factor # 2. Group:

• An organisation is a group of two or more persons,

who collectively work for attainment of set objectives
on a continuous basis. An individual behaves
differently when he is in group, instead of that when
he is alone. Even the behaviour is different when he is
in different groups e.g., when supervisor is
accompanied with subordinates and when he is in
company of other supervisors.
 Factor # 3. Organisational Structure/Design:

• Organisational structure or design depends on division

of work, departmentalisation, hierarchy and
coordination. These factors vary in different
organisations. Moreover, power relationships, extent
of decentralisation, reporting methods and work
procedures also differ in organisations.
 Factor # 4. Technology:

• The most important thing to achieve organisational goals is

performance of assigned jobs by the employees. If the employees
perform their jobs in time, then only organisational goals can be
achieved. The work is performed with the help of technology i.e. with
technique and equipment.

• If the technology and equipment matches the choice of employees, they

will be satisfied and tasks will be performed efficiently on time and vice
versa. Thus, technology and equipment affect the employees’ behaviour
as well as OB.
 Factor # 5. Business Environment

• The surroundings of a business in which it operates is called business

environment. Business environment is composed of external and internal
factors. External environment can also be classified as micro environment
(which are controllable by firm and vary from industry to industry) and
macro environment (which affects the whole economy).

• Various environmental factors which affect organisation includes social,

technological, political, economical and customers, suppliers,
competitors, etc. Behaviour of employees is affected by these factors.
Therefore, in OB, the effect of these factors on behaviour of people is
also studied.
 Models of Organizational Behavior

• Models of Organizational Behavior constitute the belief system

that dominates management’s thought and affects management’s
actions in each organization.

• It is very important for the managers to recognize the nature,

significance and effectiveness of their own models as well as
the models of others around them.

• Assumptions about Employees- Theory X and Theory Y by Mc

Gregor (1957)
• THEORY X

 The typical person dislikes work and avoid it if possible

 The typical person lacks responsibility, has little ambition and seeks security
above all

 Most people must be coerced, controlled, and threatened with punishment to

get them to work

 With these assumptions the managerial role is to coerce and control employees
• THEORY Y

 Work is as natural as play or rest .People are not inherently lazy. They have become that
way as a result of experience

 People will exercise self direction and self control in the service of the objectives to which
they are committed

 People have potential. Under proper condition they learn to accept and seek responsibility.
They have imagination, ingenuity and creativity that can be applied to work

 With these assumptions the managerial role is to develop the potential in employees and
help them release that potential toward common objectives.
 Emerging Challenges in the Field of OB

• Workforce Diversity:
Organizations are becoming increasingly cosmopolitan. Organization specialist
must learn to live with diverse behaviors. Managers must learn to respect diversity.
Diversity if managed positively enhances creativity and innovation in organization
as well as ensures better decision–making by providing different perspectives on
problems. When not managed, diversity leads to increased turnover, heightened
inter-personal conflict and more strained communication.

• Changed Employee Expectation:

Traditional allurements such as job security, attractive remuneration housing does
not attract, retain and motivate today’s workforce. Employees demand
empowerment and expect equality of status with the management. Empowerment
results in redefining jobs, both from the shop floor as well as the boardrooms.
Expectations of equality break up the traditional relationship between employer and
employee – top to bottom.
 Emerging Challenges in the Field of OB

• 3. Globalization:
•
Growing internationalization of business has its impact on people
management. Managements are required to cope with the problems of
unfamiliar laws, languages, practices, competitors, attitudes and
management styles, work ethics and more. To face this challenge the
management must be flexible and pro-active. Being flexible and pro-
active the management can make significant contribution to the
company’s growth.
1. Internationalization makes managers to increase their competencies.
2. Globalization increases the number of managers and professions.
 Emerging Challenges in the Field of OB

• 4. Improving Productivity and Quality:

As organizations are exposed to competition, managers are seriously

thinking of improving quality and productivity. In this context managers are
implementing programmes like TQM (Total Quality Management) and Re-
engineering programmes that requires employee involvement. TQM is a
philosophy of management that is inspired by constant attainment of
customer satisfaction of all organizational process. Re-engineering means
radically re-building and redesigning those processes by which we create
value for customers.
 Emerging Challenges in the Field of OB

5. Changing Demographics Of Workforce:

Major challenges from changing demographics of workforce relate to dual-

career couples. Couples where both partners are actively pursuing
professional careers. The increase in number of dual career profession limits
individual flexibility and may hinder organization flexibility in acquiring and
developing talent. Another change in the workforce demographics relates to
the growing number of employees who are young
Thank you !