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live together with others in social groupings as a family, a clan, community or friendship group or organization. The individuals are bound together in a network of stable social relationships. Hence, our society is organizational with large and complex organizations that exist in every sphere of human activity. Organisations play an important role in the quality of human life. Hence, the study of organizations has become imperative. Organisations are usually studied from two perspectives – • Micro • Macro Micro perspective focuses on human beings in the organization. It studies human beings as individuals – an individual’s psychological make-up, his interaction with other individuals and groups, variables determining his behavior in the organization and the strategies that can be adopted to govern his behavior as a desirable one in the organization. The micro perspective of organizational study is taken care of in “OB”. Macro perspective considers organization as a unit of analysis. It emphasizes on the study of human behavior as a collectivity of people, how organizations are structured, how technology affects people in the organization and how organization interacts with the environment. The macro aspect of organizational study is taken care of in “Oganisational Theory”. Any definition of OB should put emphasis on 3 features – • Organisational Behaviour is the study of human behavior. • The study is about behavior in organizations. • Knowledge about human behavior would be useful in improving an organisation’s effectiveness.
Definitions • “Organisational Behaviour” is the study and application of knowledge about how people – as individual and as groups – act within organizations. • It is a field of study that investigates the impact that individuals, groups and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organisation’s effectiveness.
Organisational Behaviour means the study of behavior of individuals, and groups in organizations and organizations themselves, as they act and interact to attain desired outcomes.
OB is a scientific study in which a number of research studies and conceptual developments are taking place. It is also an applied science wherein information about effective practices in one organization is being extended to many others. OB provides a useful set of tools at many levels of analysis – It helps managers to understand the behavior of individuals within an organization; understand the interpersonal relationships, when two people (coworkers or a superior – subordinate pair) interact; to understand the dynamics or relationships within small groups, both formal teams and informal groups; to understand the intergroup relationships; and finally understand the organizations as whole systems that have interorganisational relationships (Eg – Mergers and Joint ventures). Goals of OB • To describe – The first objective is to describe – how people behave under a variety of conditions.
To understand – as to why people behave as they do. To predict – Predicting future employee behavior is another goal of OB. Managers would have the capacity to predict which employees may be dedicated and productive or which ones might be absent or disruptive on a certain day so that the manager could take preventive actions.
Organisational behaviour draws a rich array of research from these disciplines. It is significant to note that because of the importance of human behaviour in organisations. explain and predict human behaviour in the organisational context so that it may be moulded into result-yielding situations. It provides a rational thinking about people and their behaviour. What makes it a field in its own right is the attempt to integrate various aspects and levels of behaviour. The field of organisational behaviour is heavily influenced by several other behavioural sciences and social sciences. It provides a rational thinking about people. sociology and anthropology. group behaviour and behaviour of the organisation itself. research and application associated with a growing concern for people at the workplace. The prominent among these are psychology. It helps in demolishing ‘incorrect’ assumptions one may hold about behaviour. team effort and productivity. Inter-disciplinary Approach. Features of Organisational Behaviour The essential characteristics of organisational behaviour are as follows: (i) (ii) (iii) (iv) (v) (vi) An Integral Part of Management. Human Tool. OB is a part of general management and not the whole of management. The major goals of organisational behaviour are to understand. It represents behaviour approach to management. skill development. OB has assumed the status of a distinct field of study. Levels of Analysis. It provides . OB involves three levels of analysis of behaviour – individual behaviour. Managers also want to make an impact on employee behavior. Managers should be able to improve the results through their own and their employee’s actions. OB is a human tool for human benefit. A Field of Study. It helps in understanding and predicting the behaviour of individuals. OB is an action – oriented and goal-directed discipline.• To control – The final goal of OB is to control and develop some human activity at work. OB is a field of study backed by a body of theory. It includes creative thinking among the managers to solve human problems in organisations. Its study helps in understanding the human behaviour in work organizations. Goal-Oriented.
It is possible to predict relationships between variables on a broad scale. The systematic knowledge about human behaviour is a science. OB is both a science as well as an art.generalisations that managers can use to anticipate the effects of certain actions on human behaviour. However. OB seeks to fulfill employees’ need and aspirations. Every employee in the organisation wants to fulfill his needs through organisational activities. . The exact prediction of behavior of people in organisations is also not possible. It cannot provide specific answers to all organisational problems. (vii) Science and Art. Thus. organisation behaviour is not an exact science like physics or chemistry. The application of behaviour knowledge and skills clearly leans towards being an art. but it is difficult to apply predictive models in all situations. both organisation and individuals can be benefited by each other. It is the organisation’s responsibility to provide congenial climate in the organisation so that people may get need satisfaction and the organisation may attain its objectives. (viii) Satisfaction of Employees’ Needs.
and (iii) Organisation.. groups (say class or section) and the institute as a whole – are all important and outstanding performance of each individual and group is recognized and highlighted. viz.Levels of Analysis of OB Organisational Behaviour focuses on three levels of analysis. Behaviour at all three levels is interdependent and interrelated.(i) Individual (ii) Group. The performance of individuals. .
Job-satisfaction Social. Cultural and Other Factors Work Stress SOCIOLOGY Group Level : Groups and Teams Leadership Communication Conflict.PSYCHOLOGY Individual Level: Personality. Dynamics of Change Formal and Informal Organisation Status and Roles GROUP Organisational Behaviour INDIVIDUAL SOCIAL PSYCHOLOGY Change in Attitude and Behaviour Group Processes : Norms Communication Group Decision-making ANTHROPOLOGY Organisation System Level : Organisational Culture Stress Management Organisational Change and Development Morale and Productivity Cross-cultural Analysis POLITICAL SCIENCE Organisational Power Politics Conflicts Coalitions ORGANISATION . Perception Attitudes and Values Individual Decision-making Learning Motivation.
while they may fight for change in certain situations. The behaviour of individuals is a complex phenomenon and is affected by a large number of factors such as personality. Several factors influence the behaviour of groups such as group goals. norms. they may resist change. social. cohesiveness. Individuals and groups operate within the structure of formal organisation. or as a result of influence of the external environment.An organisation is a system composed of several interdependent individuals and groups.) Behaviour at the Individual Level . learning. 3. communication. The individual is a central feature of organisational behaviour. They particapte in shaping the culture of the organisation and also in organisation development. At times. cultural and other factors.Organisations are made up of their individual members.1. The study of behaviour from the perspective of the whole organisation is also referred to as macro organisational behaviour. 2. Understanding of group dynamics is essential to reduce conflicts and improve morale and productivity. Research studies have shown people behave differently in groups than as individuals.Behaviour pattern of individuals is also influenced by the groups to which they belong. in response to expectations of the organisation.) Behaviour at the Organisation Level . attitudes.) Behaviour at the Group Level . Understanding the effect of group relationships is important for managers in today’s organisations. whether acting in isolation or as part of a group. The study of behaviour of an individual working in the organisation is also known as microorganisational behaviour. leadership. The co-operative relationships help the organisation in achieving its objectives. etc. . Inter group relationships may be in the form of cooperations or competition. perception. motivation. group and individual levels. Stress caused by the activities of individuals and groups has to be managed at the organisational .
higher bonus. Similarly. . 4) OB helps in the field of marketing. 5) OB helps in predicting the behaviour of individual and thus help the organization to be effective having good ‘people skills’ which includes the ability to understand one’s employees and to use this knowledge to make them work efficiently is a vital requirement if a person has to succeed as a manager. 6) Effective management means competent utilization of technical and financial resources. In the dynamic mechanism of the flow of goods and services from producer to consumer. reluctance of the management to talk to union leaders may provoke them to give a strike. transactional analysis and conflicts can also be understood better with the study of OB. the basic issue may not be demand for more wages. 2) A manager in a business establishment is concerned with getting things done through others. OB is a discipline which enables a manager to motivate his subordinates towards higher productivity and better results. He will be successful in his job when he can motivate his subordinates to work for better results. communication. This will improve interpersonal relations considerably. or if his productivity is readily declining. a better canteen etc. 3) The field of OB will be successful in maintaining cordial industrial relations. OB will help the manager understand the basis of motivation and what he should do to motivate his subordinates. Attitudes. the awareness of the nature of individual and social process has an immediate or long term contribution to the success or the failure of the enterprise. Hence the relations between the management and the employees are often strained for reasons which are personal but not technical. perception. If an employee is slow in his work. leaderships.IMPORTANCE OF OB 1) OB helps an individual to understand himself and others better. This can be due to any other reasons like the indifferent attitude of the boss towards the worker which in turn can lead to the worker loosing interest in his work gradually.
The workforce of an organization. Some organization have resorted to a flatter structure (containing fewer levels. Groups are dynamic in the sense that they form. Structure . however is very diverse in terms of their educational backgrounds. Technology allows people to do more & better work but it adds to the cost for examples.Structure defines the formal relationship and use of people in organization. Some organizations have hired contingent workforces (tempory. 4. authentic compassion and vulnerability. demonstrating openness. People Structure Technology Environment 1. 2. the dramatic shift from a manufacturing to a service . talents & perspectives to their jobs. developing the competence level of the employees. That system consists of individuals & group & large groups as well as small ones. The managements’ leadership practices have to be tuned to the diverse workforce. Technology.Increasing use of robots & automated control systems in assembly lines. The people are given the assistance of machines. empowering some without exploiting others. change & disband. One has the authority & the others have a duty to obey him. methods & resources. really listening to the employees. People. confidence. other have a complex structure as a result of mergers. 2. acquisitions & new ventures.People make up the internal social system of the organization. building pride without devaluing others. 3.Technology provides the resources with which people work & affects e task that they perform. Some companies have developed a sense of caring. part-time or contract employees). some firms have developed a team-based structure.Forces Affecting Organizational Behaviour The four key forces that affects Organization Behaviour 1. a goal attained by cutting middle management position). There are unofficial informal groups & official formal groups. 3. It defines the roles & relationship of people in an organization. People work in the organization to achieve their objectives. The structure defines the authority-responsibility relationship. Different jobs are performed by different people in an organization & these people are related to each other in some structural way so as to coordinate their work effectively.
politico-legal. Environment. Any change in the environment creates demands on organizations. the family & other organizations. It influences the attitudes of people. geographical forces. An organisation is always a part of a larger system with elements like government. It draws concepts & principles from behavioural.economy. use of internet & improved quality of goods & services at acceptable prices. Citizens expect organisations to be socially responsible. advances in computer hardware & software capabilities. People Environment ORGANISATION Environment Structure Environment Technology Disciplines contributing to OB OB is not a discipline in itself but it uses knowledge concepts & principles from the other relevant disciplines. there are new products & competition for customers. Any organization is influenced by its external environment. 4. economic. All these technical advancements exerts an increased pressure on OB to maintain a delicate balance b/w technical & social systems. It .Organisations are influenced by external environment which include socio-cultural. affects working conditions & provides competition for resources & power. All organisations operate within an internal & external environment.
individual & group decision making. industrial. abnormal. the term behaviour. Sociology – It uses the scientific method in accumulating knowledge about man’s social behaviour. Sociology lf Law 5. social behaviour. Anthropology OB draws concepts from social sciences also1. Sociology of religion .normal. Psychology is a science of behaviour. status. perception. It studies social groups. the way in which people act towards one another.The term “psychology comes from the Greek word “psyche” meaning soul or spirit. pattern of influence. legal. Its contributions to behavioural science are in the field of learning. Sociology 3.draws concepts & principles from behavioural sciences & the core disciplines of behavioural sciences are1. memory. childhood. personnel selection & training. Psychology 2. Its subfields are1. It also studies process of human behaviour like learning. old age etc. sensation. social mobility and prestige. institutions. History 3. Psychology. thinking. Political sociology 2. adolescence. Psychology studies behaviour in various conditions. motivation. and change in organization group process. It studies the shared human behaviour. Educational sociology 6. vocational choice and satisfaction. perception. Industrial sociology 3. Political Science Contributions of core disciplines of behavioural sciences to OB 1. society. communication. Family sociology 4. emotion. social. 2. There is also a separate branch of industrial psychology which deals with the application of psychological facts & principles to the problem concerning human relations in organization. customs. social class. feeling & personality. Economics 2.
biological factures of man and evolutionary pattern. its contribution is in the field of bureaucracy. effects of value systems. Human behaviour is a complex phenomenon and is affected by a number of factors like psychological. Anthropology. norms. OB integrates these factors in order to understand human behaviour. role structures social system theory. 2) POLITICAL SCIENCE: It provides the basis for the conflicts in organisation. Hence. UNDERSTANDING HUMAN BEHAVIOUR OB helps to understand human behavior in the organisation – at the individual level. power and authority structure and overall administrative process. sentiments. speech and relationship among languages. OTHER DISCIPLINES 1) ECONOMICS: Economics contributes in understanding the decision process. grp dynamics effect of industrialsation on the social behaviour etc. social. cohesion and interaction. Interpersonal Level : Human behaviour has to be understood in terms interpersonal interactions because human beings have a natural tendency to socialize. interpersonal level.To the managerial practice.“Anthropology” combines the Greek stem ‘anthropo” meaning man & “Logy” meaning science. OB helps to understand relationships in terms of superior ii) . It studies civilization. i) Individual Level: OB helps to understand why and how an individual behaves in a particular way. group level and inter group level. cultural etc. Anthropology is the sciences of man. 3. forms of cultures & their impact on individual & grps. and methods of allocating scarce resources in organizations and the impact of economic policy on organizations. Anthropology contributes in understanding the cultural effects on organization behaviour.
iii) Group Level: Individuals are times modified by group pressures. peer relationships. His system (exploitative authoritative) in which motivation depends on physical security & some use of desire for status & better performance is ensured through jear. transactional analysis etc. its acceptability is to a limited extent. iv) MODELS OF OB AUTOCRATIC MODEL. & employees are expected to follow orders. A strict supervision is read to obtain a desirable performance from them. goals. The autocratic model represents traditional thinking which is based on the economic concept of the man. The Management decides what is the best action for the people. communic” is mostly one. threats punishment & occasional rewards. Way. OB helps to understand and achevie cooperative group relationships through interaction. Inter Group Level: Inter group relationships may be in the form cooperation or competition. managerial orientation is towards power. leadership and membership. This dependence is possible: employees live on the subsistence level. i. Particularly where the employees can be motivated by physiological needs.e downward. . An understanding of group behaviour is important organizational moral and productivity. But t is still a useful way to accomplish performance. cohesion. role analysis. There is little interaction s/w mangers & employees. with changing times.In an autocratic model. Hence it becomes important to study groups and group dynamics with special reference to norms. communication pattern. This usually happens at lower strata of the organization. Managers see authority as the only means to get the things done. The organizational process is formal. However. avoidance of win-loose situation and focuses on total group objectives. So there is a high dependence on boss. rotation of members among groups.subordinates relationships. The model is largely based on the theory x assumptions of McGregor wherein the human beings are distasteful to work & try to avoid respeonsiblity. Likert’s Management system can be compared with a model of OB.
In this model. Hence not a suitable model for matured employees. The organizational processes like communication. The focus is on employee participation in managerial decision making process. control and influence help employees to fulfill their higher order needs like self-actualisation and esteem. The employees are able to satisfy their security needs (Maintenance factors in case of herzberg’s theory). Manager’s role is to help employees achieve their work rather than supervising them closely. decision making. the focus is not on the economic resources of the organization but its human aspect. The employees are highly dependent on the organization. the managerial orientation is towards the use of money to pay for employee benefits. The supportyive model is based on the assumptions that human beings move to the maturity level and they expect the organizational climate which supports this expectation. interaction. The model depends on the economic resources of the organization & its ability to pay for the benefits. These maintenance factor provide security but do not provide strong motivation the employees working under custodial model feel happy get adequate rewards & organization security but their performance level is not high as are not given any authority to decide what benefits / rewards they should get.CUSTODIAL MODEL . The model is based on “Principles of Supportive relationships” of Likert. The aim of managers is to support employees in their achievement of results. It is similar to the assumptions of Mc Gregor’s Theory Y. . An organizational dependence reduces personal dependence on boss. SUPPORTIVE MODEL – This model depends on managerial leadership rather than on the use of power or money. This approach is quite similar to patrimonial approach where the Management decides what benefits are best suited for the employees. The supportive model is best suited when employees are self motivated. This model is specially effective with nations with affluence and complex technology because it caters to higher-order needs and provides intrinsic motivational factors. Hence. leacdership. which is the basic ingredient of his system 4(participative).
Employees need a little direction and control from the management. The various models (Autocratic. the same model cannot be used for all of them. they want more than a pay check & job security from their jobs. The collegial model is conducive to self fulfillment & self-actualisation. hence are self motivated. the employees realize and recognize the mutuality of company-employee obligations in a system model. Supportive. esteem. It can be more beneficial with unprogrammed work requiring behavioural flexibility and intellectual environment and job freedom. The employees take a responsibility for their own goals and actions. There is a sense of psychological ownership for the organization and its products / services. the employees needs are higher-order needs (social. autonomy. status. They look for a work that is ethical. SYSTEM MODEL – It is one of the emerging models of OB. The term “Collegial” refers to a body of people having a common purpose. Herein. In turn. The role of a manager is to facilitate employee accomplishments through a variety of actions. there is a strong search for a higher meaning at work by the employees. It is based on the team concept in which employee develops a high degree of understanding towards others and shares common goals. enfused with integrity & trust and provides an opportunity to experience a growing sense of community among co-workers. the managers demonstrate caring and a compassionate attitude and are sensitive to the needs of a diverse workforce. As the need hierarchy differs for different people. Collegial and System Model) of OB are based on the assumption of the human characteristics and how they can work best.It is more suitable for employees at managerial levels rather than on operative levels. “Responsibility” is expected out of the employees. self-actualisation). . To accomplish this. They are basically constructed around need hierarchy. Control is through self disciple from the team members. Custodial. COLLEGIAL MODEL – This model is an extension of supportive model. Hence.
while at the same time not discriminating. The challenge for organizations. Diversity. it leads to a higher turnover. Quality Management – (i) Constant attainment of customer satisfaction through the continuous improvement of all organizational processes. To work effectively with these people. thus. family needs and workstyles. personality factors and the type of work environment. if properly managed. can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. aspirations and attitudes. race and ethnicity. Challenges and Opportunities for OB • Responding to Globalisation – Organisations are no longer limited by national borders. If diversity is not properly managed. For this. they often have to implement programs of Quality management and Process Reengineering. workforce diversity focuses on differences among people with given countries. maturity level.The need hierarchy changes with the level of a person. more difficult communication and more interpersonal conflicts. how it has shaped them and how can the management style be adapted to suit their differences. • • Improving Quality and Productivity – The managers often confront challenges to improve their organization’s productivity and the quality of products and services they offer. This involves providing diversity training. and revamping benefit programs to accommodate the different needs of different employees. Managing workforce diversity – While globalization focuses on differences between people from different countries. is to make themselves more accommodating to diverse groups of people by focusing on their different lifestyles. Managers have to be capable enough to work with people across cultures. one needs to manage a workforce which is different in needs. . Being a manager. Workforce diversity means that organizations are heterogenous in terms of gender. level of his education. one needs to understand their culture.
(iv) Empowerment of employees – Quality management involves the people in the improvement process. Newer recruitment and retention strategies have to be developed with the help of OB. The management should focus on creating a customer – responsive culture – a culture in which employees are friendly and courteous. Also. • Improving people skills – Techniques should be developed to design motivating jobs. In the latter part of the 20th century. there was a huge increase in the number of women entering the workforce which was a new supply of talented and skilled workforce.(ii) Improvement in the quality of everything that the organization does – how the organization handles deliveries. During labour shortage. It is also predicted that there will be a labour shortage for atleast 10-15 years. expanded social security benefits and a healthy stock market. how rapidly it responds to complaints etc. accessible. knowledgeable. In 2001. In 1990s. there was an economic recession – lot of layoffs took place and hence the skilled workers were in plenty. prompt in responding to customer needs and willing to do what’s necessary to please the customer. good wages and benefits are not the only means to get and keep skilled employees. the labour markets were tight as the world economy was robust. . to improve upon the listening skills and to create effective teams. • Improving customer service – OB can contribute to improving an organisation’s by showing managers how employee attitudes and behavior are associated with customer satisfaction. It was difficult to fill vacancies with skilled workers. • Responding to the labour shortage – Economic ups and downs are difficult to predict. the older workforce seem to be less interested to work which can be attributed to improved pension plans. Teams are used in QM programs as empowerment vehicles for finding and solving problems. (iii) Accurate measurement – Quality Management uses statistical techniques to measure the performance variables and then compare them with the standards / benchmarks. Process Reengineering – helps managers to reconsider how work would be done and the organization restructured if they were starting over from the scratch.
• Empowering people – There has been a complete change in the relationship between managers and the employees. interrupted occasionally by short periods of stability. . creating personal conflicts and stress. and employees know how to take responsibility for their work and make appropriate decisions. Earlier. Work groups are also in a state of flux. The challenge for managers is to stimulate the employees’ creativity. This can be due to the following reasons – Creation of global organizations – Employees are required to work 24*7. The services of Dominos has brought an end to a number of pizza parlours in the city. spontaneity and unpredictability. “managing” today includes long periods of ongoing change. • Helping employees balance work / life conflicts – The line between the work and non work time of employees has become blurred. Organisations also continuously reorganize their divisions. So there was security in working with the same people. • Stimulating Innovation and Change – The organizations should foster innovation. There is also a concept of self-managed teams wherein workers operate largely without bosses. Decision making now happens at the operating level. Employees have started having a full control of their work. employees were assigned to a specific work group which was permanent. • Coping with “Temporariness” – Unlike yesteryears. But now. managers are learning how to give up control. sell-off poor performing businesses. work groups are temporary wherein members are from different departments and members keep changing and employee rotation is practiced to fill constantly changing work assignments. Example. to live with flexibility. The workers need to update their knowledge and skills continually to perform new job requirements. continuously improve their quality in order to beat competition. subcontract non-critical services and operations to other organisations and replace permanent employees with temporary workers. By empowering employees. The managers and employees should know to cope with temporariness.
they provide with protection mechanisms for employees who reveal internal unethical practices. Equally.e. For example. It is more like a tunnel vision in which people have narrow viewpoints as if they were looking through a tunnel. Also. • Improving ethical behavior – Employees at times.productive organizational outputs is lost. Limitations of OB • Behavioural bias – Behavioral bias gives a narrow viewpoint to the employees that emphasizes satisfying employee experiences while overlooking the broader system of the organization. Should they follow orders with which they don’t personally agree? Should they uncover illegal activities taking place in the company? Managers and organizations are trying to tackle this problem by – o Writing and distributing codes of ethics to guide the employees. Dual-career couples – as a result married couples have lesser time to fulfill commitments back home. workshops. Longer hours put in by the employees. similar training programs to try and improve ethical behavior. Communication technology – People do their work from any place at any time. The concern for employees can be so greatly overdone that the original purpose of bringing people together. It is wrong to assume that the objective of OB is simply to create a satisfied workforce without worrying about customer service and productivity. o Provision for an in-house advisor who can be contacted (anonymously) for assistance in dealing with an ethical issue. So. o Seminars. face ethical dilemmas i. situations in which individuals are required to define right and wrong conduct. managers should help in making their workplace and jobs such that it helps the employee deal with work / life conflicts. if a person is .
Hence. .Too much of care can make the employees dependent and unproductive. For example. and then negative returns asmore increases are added. there is an optimum amount of a desirable practice. too much security may lead to less employee initiate and growth. such as recognition or participation. When that point is exceeded. • The Law of Diminshing Returns – The Law of diminishing Returns is a limiting factor in OB as in Economics which produces negative results. • Unethical manipulation of people – The knowledge and techniques of OB are at times used to manipulate people unethically as well as to help them develop their potential. there is a decline in returns. this law states that at some point. In OB. increases of a desirable practice produce declining returns. For any situation.continuously concerned with production outputs without regard for employee needs is misapplying OB. They may find excuses for failure and avoid taking responsibility for progress. organizational effectiveness is achieved not by maximizing one human variable but by working all system variables together in a balanced way. They lack self discipline and self respect. eventually zero returns. Behavioural bias can harm the employees as well as the organizations. People who lack respect for the basic dignity of the human being could use OB for selfish ends and use people in unethical ways.
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