Organizational Behaviour

Prepared by :-Mehul Rasadiya

(K.K.Parekh Institute of Management Studies)(Amreli)

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Organizational Behavior – Introduction, definition, goals, elements

Historical development of Organizational Behaviour

Fundamental conceptsContributing disciplines to OBModels of OBSocial systems and organizational cultureInternational dimensions of organizational

behaviourLimitations of Organizational behaviour, The future of OB.

subject

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Human beings depend on organization from birth to death

Most people neglect organizations, unless they fail to deliver goods and services

Need for effective organizations as they provide goods and services at reasonable cost

OB contributes for organizational effectiveness

Introduction

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Behaviour is a function of person and environment

Different people different behaviourBehaviour may be desirable or undesirableManagers have to manage both person and

environment in organizations to achieve desired goals

OB Meaning

Organization is a set of people working together to achieve shared goals

OB is the study of human behaviour in organizational settings

OB offers tools and techniques to manage behaviour in organization

Contd..

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So, OB is the study of human behaviour in an organization environment, and applying the knowledge derived from this study to improve organizational effectiveness

OB deals with behaviour of individuals and groups within organizations and the interaction between organizational members and their external environment

Contd..

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Stephen P Robbins, “ 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 towards improving an organization’s effectiveness”

It is the common body of knowledge which studies individuals, groups and effect of structure on behaviour

Definition

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Describe behaviour: goal is to describe systematically how people behave under variety of conditions. If this goal is achieved managers can define behaviour of employees easily

Understand: goal is to understand why people behave as they do. It is to understand the reason behind those behaviours

Goals

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Predict: goal is to empower managers with a capacity to predict or anticipate employee/ people behaviour. It is to anticipate which employee might be successful, who might be absent, who might cause problem etc. this helps managers to prepare concrete plans & take preventive actions wherever necessary

Control: Goal is to control and develop the human activity at work. This is to minimize undesirable behaviour and develop desirable behaviour in the organization

Goals Contd..

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Elements of OBElements of OB

Organization structure, technology

People, their level of

satisfaction, motivation, growth &

development

Co. culture,

leadership, communica

tion

Company philosophy

, values, vision, goals

Note: Company philosophy can be the principles or foundations Around Which company works

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Koutilya’s Arthashastra states that there was systematic management of human resources during 4th Century BC itself

Minimum wage rate, incentive wage plan concepts were included in Babylonian civilization during 1800 BC

Actual development of OB can be traced from beginning of the 19th Century

Historical Development of OB

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Prior to 19th Century, condition of workers was miserable

Industry Revolution, which happened during 19th Century benefitted employees in terms of increased wages and reduced working hours

Robert Owen, Andrew and J N Tata were the pioneers in providing welfare facilities to workers

But they were criticized of following do-good-approach

Contd..

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During Scientific Management Era, Taylor focused on human resources at work, but he wanted to rationalize everything & his sole aim is to get more output from workers

Failure of Scientific Management gave birth to human relations movement, which heavily emphasized on employee cooperation and morale

3 contributing factors to human relations movement are; Great Depression, Labour Movement and Hawthorne Studies

Contd.

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Every discipline- social science or physical science- have assumptions or principles

Ex: Financial Accounting one of the principles says, for every debit there shall be a corresponding credit

Ex: Law of gravity is common everywhere

Fundamental Concepts of OB

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There are differences between individualsA whole personBehaviour of an individual is causedAn individual has dignityOrganizations are social systemsMutuality of interest among

organizational membersHolistic organizational behaviourNeed for management

Contd..

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First four are around peopleNext two are concerned with organizationsLast two are combination of first five

assumptions

Contd..

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Contd..Individual differences

Whole person

Caused behaviour

Human dignity

Need for management

Holistic approach

Mutuality of interests

Social systems

OB

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1. Individual Differences:There are differences between people. Be it in intelligence, physique, personality or any other trait, they are different. This concept comes from psychology

2. A whole person:When an individual is appointed, his\her skill alone is not hired, his\her social background, likes, dislikes are also hired. A person’s family life can not be separated with work life.

3. Caused behaviour:Behaviour of an employee is caused, not random. Behind every behaviour, there will be a cause, reason. Management should find that cause if it wants to manage the behaviour

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4. Human dignity:People have to be treated differently from other factors of production. People should be treated with respect and dignity. It rejects the old idea of using people as economic tools.

5. Organizations as social systems:Organizational activities are governed by social status, rules & regulations & psychological needs. It implies that environment is dynamic. All parts are interdependent and subject to influence by any other part.

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6. Mutuality of interest:It represents the statement “ organizations need people & people also need organizations”. Organizations utilize people to achieve their goals. People see organizations to satisfy their needs or desires.

7. Holistic organizational behaviour:When first 6 concepts are placed together holistic concept emerges. Interprets that people organization relationship expressed in terms of whole people, whole group, whole organization, & whole social system.

8. Need for management:Knowledge derived from OB study will be utilized in improving organizational effectiveness. And management uses this knowledge. While studying OB, management needs should be considered.

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Contributing Disciplines to OB

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OB ModelPersonalityPerceptionLearning

Attitudes and attributionMotivation

Group dynamicsTeam dynamics

LeadershipPower and politics

CommunicationConflict

Organizational CultureHuman resource

Policies & PracticesWork Stress

Organization Change & Development

Individual Behaviour

Group Behaviour

Organization

Organizational Effectiveness

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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:

1. Autocratic - 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.

2. Custodial - 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.

OB Model Contd..

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3. Supportive - 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.

4. Collegial - The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm.

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OB models by Keith Davis contd..

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Social System:A social system is complex set of human

relationships interacting in many waysWithin an organization, it includes all the

people in it and their relationships to each other and to the outside world

Behaviour of one member can have impact on the behaviour of others.

It does not have boundaries, it exchanges goods, ideas, culture, etc. with the environment around it. 

Social systems and organizational culture

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Organizational Culture:Culture is the conventional behavior of a

society that encompasses beliefs, customs, knowledge, and practices

Culture gives them stability, security, understanding, and the ability to respond to a given situation.

Individualization is when employees successfully exert influence on the social system by challenging the culture

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For a creative environment match of high socialization and high individualization should be implemented in an organization

Individualization favors individual rights, personal rewards, it looks for number 1 or the best

Socialization favors group, harmony and asks "What is best for the organization?"

Organizations need people to challenge, question, and experiment while still maintaining the culture that binds them into a social system. 

Contd..

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Organizations are expanding beyond their national boundaries

The world has entered an era of global economic activity

4 aspects of International dimension of OB:Behaviour across culturesCulture determines behaviourCulture clustersCultural diversity

International dimensions of organizational behaviour

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1. Behaviour across cultures:Behaviour in organizational settings varies across cultures. HR practices too vary across cultures. Ex: in Australia & Brazil, employees with 1 year of service are automatically given 30 days of paid vacation

2. Culture determines behaviourCulture influences behaviour. Cultural norms & values guide everyday life of individuals. These norms & values will pass to future generation through cultural symbols, stories & rituals.

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Cultural norms: behaviours & practices, tell us what we can do or what we can not do

Cultural values: tell us what is dear to our hearts. Ex: American culture values freedom, this is towards individualization. Japanese culture finds a higher value in belonging. Belonging to a group is ore important than individualism.

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3.Culture clusters: Represent countries that share cultural

similarities. Similarities can be in same language, currency usage, etc

International businesses utilize this culture-clustering approach in formulating global strategies. People with identical culture behaviour can be grouped

4. Cultural Diversity:By adopting cultural diversity, an organization can become more effective. It will become more flexible & can manage behaviour easily. One culture may benefit from other culture

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OB is a means to improve, not an absolute answer for problem

OB results wont give any assurance for future behaviour

OB is a fad. Concepts has become vague now. Ex: transparency, open cabin

OB is selfish & exploitative: practically it serves interest of management

Limitations of OB

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In future employee focus will change towards career development & recognition

Task will become flexible in nature to avoid monotony & boredom in work place

Organization’s structural changes [ boundary less, network or project structures]

Internationalization of business brings cultural & behavioural complexity

Future of OB

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Define Organizational Behaviour. [3 marks]

Explain OB models. [7 marks]Explain limitations & future of OB. [10

marks]Explain fundamental concepts of OB. [7

marks]

Sample Questions

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THANK YOU

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