Unit - I Introduction To Organisation Behavior Notes-1
Unit - I Introduction To Organisation Behavior Notes-1
Unit - I Introduction To Organisation Behavior Notes-1
UNIT:I
There are two words in OB:
Organization: It is an entity—such as a company, an institution, or an association—
comprising one or more people and having a particular purpose.
It is group of people who are collected to work for a common goal with collective effort.
Behavior: It is a verbal and physical response shown by a person as a consequence of impact
of his or her surroundings.
In other words: the way in which one acts or conducts oneself.
What is Organizational Behavior (OB)?
Organizational behavior (OB) is the study of human behavior in the work setting, the influence
of an organization on its employees, and the employees of the organization.
Definitions:
• Organizational behavior is directly concerned with the understanding, prediction, and
control of human behavior in the organization. – Luthans
• OB is the study of what people think, feel, and do in and around the organizations.
– McShane and Glinow
The organizations in which people work have an effect on their thoughts, feelings, and actions.
These thoughts, feelings, and actions, in turn, affect the organization itself.
Organizational behaviour studies the mechanisms governing these interactions, seeking to
identify and foster behaviours conducive to the survival and effectiveness of the organization.
1. Job Satisfaction.
2. Finding the Right People.
3. Organizational Culture.
4. Leadership and Conflict Resolution.
5. Understanding Employees Better.
6. Understand how to Develop Good Leaders.
7. Develop a Good Team.
8. Higher Productivity.
OB can be defined as actions and behaviors of individuals and groups towards and their impact on the
organization’s overall functioning and performance. OB can be studied at various levels within an
organization, and each level has a unique set of roles, responsibilities, and goals.
1. Individual Level – Deals with the concepts at the individual level. Examples of individual-
level concepts are perception, personality, learning, motivation, and attitude.
2. Group Level – Deals with the concepts at the group level. Examples of group-level concepts
are team, conflict, leadership, power, and politics. Group-level concepts may include how
groups are formed, how to make effective teams, how individually and collectively the group
activities can be improved, how to motivate employees, and which type of group would be
suitable for a particular assignment.
3. Organizational Level – Deals with the concepts at the organizational level. Examples of
organizational-level concepts are change management and organizational culture. Other topics
discussed at organizational level include the concept of organization, different organizational
models, and organizational change along with its impact and implementation. The working
conditions and stress management are also discussed at the organizational level.
4. Improved Performance
Motivating employees, giving incentives and acknowledging hard work are the pillars of
organizational behavior. This helps improve work performance because employees are
inspired to put their best foot forward. If you feel that you’re valuable to the organization,
you’re likely to work harder. The management must ensure that employees feel like a
part of the organization to encourage them toward achieving short-term and long-term
goals.
The importance of organizational behavior isn’t restricted to how well employees perform. It
also determines the smooth functioning of the day-to-day activities within an organization.
Hence, the management should aspire to create a harmonious, flexible and accessible work
environment.
Organization Behaviour is based on a few fundamental concepts which revolve around the
nature of people and organizations.
There are two fundamental concepts of OB:
• Individual Differences.
• Perception.
• A Whole Person.
• Motivated Behaviour.
• The desire for Involvement.
• The value of the Person.
• Social System.
• Mutuality System.
• Ethics system.
Challenges and opportunities of organizational behaviour are massive and rapidly changing for
improving productivity and meeting business goals.
Quality is the extent to which the customers or users believe the product or service surpasses
their needs and expectations.
For example, a customer who purchases an automobile has a certain expectation, one of
which is that the automobile engine will start when it is turned on.
This refers to employing different categories of employees who are heterogeneous in terms of
gender, race, ethnicity, relation, community, physically disadvantaged, elderly people, etc
The primary reason to employ the heterogeneous category of employees is to tap the talents
and potentialities, harnessing the innovativeness, obtaining synergetic effect among the
divorce workforce.
Responding to Globalization
Empowering People
The main issue is delegating more power and responsibility to the lower level cadre of
employees and assigning more freedom to make choices about their schedules, operations,
procedures and the method of solving their work-related problems.
Encouraging the employees to participate in the work-related decision will sizable enhance
their commitment to work.
Today’s successful organizations must foster innovation and be proficient in the art of
change; otherwise, they will become candidates for extinction in due course of time and
vanished from their field of business.
Victory will go to those organizations that maintain flexibility, continually improve their
quality, and beat the competition to the market place with a constant stream of innovative
products and services.
Organisational behaviour is a chief component of any business school core curriculum because
it sets out to help students comprehend how human beings deal with being part of organisations,
large or small, working in teams and so forth. It is, fundamentally, the study of the ‘soft’ end
of business. The theories derive from a diversity of disciplines including sociology and
psychology. It disquiets itself with the problematical patterns of individual and group working.
Thus, the apparent aim of the study of organisational behaviour is to understand why people
work in positive ways and then working out how to use this knowledge to improve the use of
resources.
THE PEOPLE
You spend a lot of your waking hours at work, so it's beneficial if they're enjoyable hours, but
that's not always the case. The people within an organization are one of the primary influences
over the overall organizational behaviour within a company. The interactions between
individual employees is, in fact, one of the main areas of study within the field of organizational
behaviour. Various personal characteristics that may influence organizational behaviour
include the education level of employees, their backgrounds, abilities and beliefs.
COMPANY STRUCTURE
The structure of a company refers to the organization of individuals in various roles and the
relationships, both formal and informal, between those roles. For example, some companies
have rigid hierarchies that define the relationship between managers and employees, while
others have more collaborative, egalitarian systems in place. The number of levels in an
organization also influences the company's organizational behaviour. For example, in a
company with many levels between entry-level employees and top management, entry-level
employees may feel they have less of a stake in their organization or that their opinions are
valued less than in a company in which there are relatively few levels between top and bottom.
THE ENVIRONMENT
The environmental influences on organizational behaviour can come from both internal and
external sources. A company engaged in a highly regulated business may have a strict and
structured culture due to the need to conform to certain laws and regulations from the
company's external environment. The internal environment of a company also affects
organizational behaviour. For example, a struggling company will often have a different
organizational behaviour than a successful and growing business. When a company's higher
ups set an example in order to improve organizational behaviour, the effects trickle down to
lighten the mood from one level to the next which is as good for morale as it is for business.
In management, the focus is on the study of the five organizational behavior models:
Autocratic Model
Custodial Model
Supportive Model
Collegial Model
System Model
Autocratic model
This model has its roots in the historical past and definitely became the most prominent model
of the industrial revolution of the 1800 and 1900s. It gives the owners and managers the power
to dictate and form decisions while making employees obey their orders. The model asserts
that employees need to be instructed and motivated to perform while managers do all the
thinking. The whole process is formalized with the managers, and authority power has the
right to give the command to the people, “You do this or else…”, is a general dictatorship
command. As Newstrom suggests, “the psychological result of the employees is dependence
on their boss, whose power to “hire, fire and perspire” is almost absolute. Employers receive
less wages as they are less skilled, and their performance is also minimum, which they do rather
reluctantly as they have to satisfy the needs of their families and themselves. But there are
some exceptions as many employees do give higher performance because they would either
like to achieve or have a close association with their boss, or they have been promised a good
reward, but overall, their performance is minimum.
Custodial Model
Now the time came when managers began to think the security of the employees is imperative-
it could be either social as well economic security. Now managers have begun to study their
employees’ needs; they found out that although in the autocratic setup, employees do not talk
back yet they have many things to say but the incapability to speak results in frustrations,
insecurity, and aggressive behavior towards their employee’s bosses. Since they are not able to
display their feelings, they would vent these feelings to their family and neighbors. This causes
suffering to the entire community and relationships, and this often results in bad performance.
Newstrom gave the example of a wood processing plant where the employees were treated
very cruelly, even to the extent of physical abuse. Since workers were not able to strike back
directly, they show their aggression by destroying the good sheets of veneer, destroying the
supervisor’s credibility.
Employers now had begun to think of how to develop better relations with the employees and
keep them satisfied and motivated. In 1890 and 1900, many companies started welfare
programs for the employees, which began later to be known as paternalism. In the 1930s,
these welfare programs evolved into many fringe benefits to provide security to the employees,
which resulted in the development of the Custodial model of organizational behavior.
A successful custodial approach depends on providing economic security, which many
companies are now offering as a high pay scale, remunerations in the form of health benefits,
corporate cars, financial packaging, and many other forms of incentives. These incentives
increase the employees’ satisfaction level and help them to achieve a competitive advantage.
To avoid layoffs, employers also tries to “retain employees, reduce overtime, freeze hiring,
encourage both the job transfers and relocations, provide early retirement incentives, and
reduce subcontracting to adjust to slowdowns, especially in the information
technology”. (Newstrom, p.32)
The custodial approach induces employees now to show their dependency and loyalty towards
the company and not to the boss or managers, or supervisors. The employees in this
environment are more psychologically contended and preoccupied with their rewards, but it is
not necessary they would be strongly motivated to give the performance. The studies show that
though it has been the best way to make them happy employees but not productive employees,
the question still remains what should be the better way? But overall, this step had been a
stepping stone for creating and developing the next step.
Supportive Model
Unlike the two previous approaches, the supportive model emphasizes on a motivated and
aspiring leader. There is no space for any control or authoritative power in this model or on the
incentives or reward schemes, but it is simply based on motivating staff through the
establishment of the manager and employee relationship and the treatment that is given to
employees on a daily basis.
Quite contrarily to the autocratic mode, it states that employees are self-motivated and can
generate value that goes beyond their day-to-day role or activity. But how do the employees
get self–motivated? By creating a positive workplace where they are encouraged to give their
ideas, there is some kind of “buy-in” in the organizational behavior setup and the direction that
it takes.
One of the key aspects of the supportive model has been studies conducted at the Hawthorne
Plant of Electric in the 1920s and 1930s. Elton Mayo and F.J Roethlisberger led the study to
implore human behavior at work by implementing and placing keen insight into the
sociological, and psychological perspectives in the industrial setup. They concluded that a
single organization is a social system, and a worker is an important component of the system.
They found that a worker is not a tool that can be used in any way but has its own behavior and
personality and needs to be understood. They suggested that understanding group dynamism,
including supportive supervision, is imperative to make workers contribute and be supportive.
Through leadership organizations give the space and climate for the employees to develop,
form their own thinking and take the initiative. They would take responsibility and improve
themselves. Managers are oriented towards supporting the employees to give performances
and not just supporting them through employee benefits as done in the custodial approach.
The supportive model is widely accepted chiefly in developed nations where the needs of the
employees are different as it fulfills many of the employees’ emerging needs. This approach
is less successful in developing nations where the social and economic need of the working
class is different. In short, in the supportive model, money is not what retains the satisfaction
of the employees, but it is a part of the organization’s life that has been put to use and makes
other people feel wanted.
Individual behavior refers to the actions, responses, reactions, and behaving ways of the individual in
a particular position. It is the combination of responses to internal and external stimuli.
Each Individual/human behavior is different from others. Understanding human behavior helps to
know how particularly people respond to some situations and express themselves.
Factors Influencing Individual Behaviour
It is obvious that we behave differently in different situations. It is all agreed that human behaviour is
caused, motivated, and goal-directed.
We behave and respond to something based on our knowledge, experience, and environment around
us. In fact, these are the factors that form individual behaviour.
There are diversified factors affecting individual behaviour however they are broadly classified into
four categories.
Sex. Sex or gender is an inherited characteristic that is determined by birth as male or female. Found,
males are emotionally stronger than women. Even physically males are stronger. Traditionally, females
are mainly involved in household work and males are in work. But, this has changed men and women
equally involved in jobs.
Age. Age is the length of time that determines the time a person lived. The age of an individual start to
increase from the day he/she is born. At a young age, people tend to be more creative and energetic and
are curious to explore things.
Education. By birth, people learn to speak, walk, behave, and respond to their surroundings. Parents
and other family members are the first educators of people. From the parents, children learn the basic
education, and morality, and become socialized human beings.
Abilities. It is the personal strength people have. The inherited ability of individuals is greatly
influenced by the health of parents, nutrition, and the environment around them. Abilities can be
inherited or learned.
Marital Status. Married people seem more responsible towards family than other unmarried. For them
steady jobs become important and such employees are expected to devote their best effort to the
workplace.
Psychological Factors
Psychological factors are the learned characteristics of the individual. These are the factors individuals
have to learn from the environment and built concepts about the world. Major psychological factors
are:
Personality. Everyone’s personality is unique. Personality refers to the ways a person thinks, feels,
acts, and behaves and which are unique from others. The unique nature of individuals is the
psychological characteristics that they gained from experience and knowledge.
Perception. Perception is the viewpoints of individuals around the world and the interpretation of the
things they see. It is the psychological process of seeing objects and constructing conclusions. Two
persons’ perceptions are different their seeing way of the world probably can not be the same.
Attitudes. Attitude is the belief system that directs our thoughts, feelings, and actions. Attitude can be
positive or negative as so we differently respond to people, situations, and ideas.
Values. Values are the moral belief and structures of people that guide their actions. Values consist of
an individual’s philosophy as to what is good, right, or desirable and they contain moral flavor.
Learning. Humans are learning beings. From birth to death people never stops learning. It takes place
during interaction with the environment and relatively permanently changes the thinking, behavior, and
actions of people.
Environmental Factors
Environmental factors are inevitable factors that have a greater influence on individual behavior. Such
as:
Economic Conditions. A person with a stable job and a good salary will definitely seem fit and clean
than a person who doesn’t have one. When there are more employment opportunities the economic
conditions of people seem to be good and living standards also improve.
Political Conditions. Politics have a great influence on organizations, people, and the whole nation.
People are knowingly and unknowingly affected by the political system. A stable political system is
required to operate stables jobs opportunities, provide freedom to people, and make different choices
as they want.
Cultural Values. Every society’s cultural values are different. Whenever a person shifts to the next
society he must understand and adapt their cultural ties. Similarly, different organizations have different
cultures that employees must assume.
Organizational Factors
In organizational settings, there are also different factors that affect individuals i.e. employees’ behavior
working there. Such as:
Physical Facilities. Physical facilities of an organization refer to the physical condition consisting of
office furnishing, the comfort of working, etc. The physical environment of the organization positively
influences employees – they feel physically safe working there.
Organizational Structure. It refers to how an organization is structured, and how different roles,
responsibilities, and duties are divided. A sound organizational structure clearly defines the how-to
functions freeing employees from roles conflicts and achieving greater efficiency.
Leadership Styles. Today managers are leaders also. Being a manager he should have to influence and
encourage his employees for better performance. In an encouraging working environment, employees
tend to stay longer and reduce turnover.
Individual Behavior Framework
On the basis of these elements, psychologist Kurt Lewin stated the Field theory and
outlined the behavior framework. This psychological theory studies the patterns of
interaction between an individual and the environment. The theory is expressed using
the formula
B = F(P,E)
• Inherited characteristics
• Learned characteristics
Inherited Characteristics
The features individuals acquire from their parents or from our forefathers are the inherited
characteristics. In other words, the gifted features an individual possesses by birth is considered
as inherited characteristics.
Following features are considered as inherited characteristics −
• Color of a person’s eye
• Religion/Race of a person
• Shape of the nose
• Shape of earlobes
Learned Characteristics
Nobody learns everything by birth. First our school is our home, then our society followed by
our educational institutions. The characteristics an individual acquires by observing,
practicing and learning from others and the surroundings is known as learned characteristics.
It consists of the following features −
• Perception − Result of different senses like feeling, hearing etc.
• Values − Influences perception of a situation, decision making process.
• Personality − Patterns of thinking, feeling, understanding and behaving.
• Attitude − Positive or negative attitude like expressing one’s thought.
The way we behave impacts our own lives and the lives of those around us. But how much do
we know about why we behave the way we do? Are we really choosing what is best for us or
are we just behaving habitually? Beyond gaining a better appreciation of our own psychology,
gaining a better understanding of human behaviour can help us understand the various internal
and external factors that shape our experiences. It can also help us understand others better and
improve how we engage and interact.
1. Understanding motivation
2. Increasing productivity
3. Creating high performing teams
1. Understanding motivation
Understanding what motivates us, and the people around us, can be a very helpful tool, both at home
and at work. This is because intrinsic and extrinsic motivators drive people in different ways. Therefore,
understanding the interplay of both can help us grasp how to motivate them (and ourselves).
This is applicable in any group setting, but particularly in the workplace, as maintaining a motivated
workforce is key to building and growing a successful company. In psychology and social work, a deep
understanding of human behaviour can also help develop innovative and effective ways to address
various social issues.
2. Increasing productivity
As we mentioned already, a motivated workforce is an essential part of developing and maintaining a
thriving business. However, there are many different ways to motivate people, and some will respond
differently to intrinsic and extrinsic motivators. For example, a greater sense of purpose and fulfilment
(intrinsic) or getting a raise (extrinsic).
If we don’t understand what drives human behaviour in the first place, how can we be expected to know
how to motivate others constructively? While manipulation and force may be an unfortunate part of
toxic work environments, genuinely taking the time to understand how people think, act, and feel can
help create a healthy and productive work environment.
3. Creating high performing teams
We can learn so much by understanding others and ourselves and applying this to any team or social
setting.
Even on a grander scale, learning more about how people think, act and feel can help with nation-
building efforts, and create more harmonious social relations.
Personality is the product of social interaction in group life. In society every person has different
traits such as skin, color, height and weight. They have different types of personalities because
individuals are not alike. It refers to the habits, attitudes as well as physical traits of a person which
are not same but have vary from group to group and society to society, everyone has personality,
which may be good or bad, impressive or unimpressive.
Personality describes the unique patterns of thoughts, feelings, and behaviors that distinguish
a person from others. A product of both biology and environment, it remains fairly consistent
throughout life.
For instance, "She is generous, caring, and a bit of a perfectionist," or "They are loyal and
protective of their friends."
Personality has been derived from the Latin word “persona” which means “mask” used by the actors
to change their appearance. It is the combination of an individual thoughts, characteristics, behaviors,
attitude, idea and habits.
Definition of Personality
Macionis define as “It is the constant pattern of thinking, feeling and acting.”
Types of Personality
1. Extrovert Personality
This type has the tendency to live mostly outside the like to live with others. Those individuals are
highly socialized and have contact with outside people in the society. They want to join other groups
who are more in number.
2. Introvert Personality
Introvert is opposite to extrovert. Those people are always live alone in their rooms and do not want to
go outside. They have their own imaginary world. They are teachers, scientists, thinkers and
philosophers.
3. Ambivert Personality
Between extrovert and introvert personalities there is a third one type called ambivert. People belonging
to this type enjoy both the groups and attend them. They have middle mind and want to live in both
parties. Sometimes they join outside people but sometimes they live in their own rooms.
Personality Development Tips
Personality Traits
Trait theories tend to view personality as the result of internal characteristics that are
genetically based and include:
Determinants of Personality
Biological traits are the foremost parameter that reflects various factors of one’s personality.
Being the essential determinant of personality, it incorporates a majority of other factors as
well which bring out the various insights about an individual. Some important constituents
under the physical determinants of personality are:
Hereditary: The features that can be determined from the time of conception are generally
put under hereditary.
The social determinants analyse a personality as per the status of the individual in their
social group or community and consider the individual’s conception of their role in the group
is like. The key factor that this approach weighs in is what others perceive us as plays a
greater role in the formation of our personality.
The era has seen the widespread emergence of communication tools, especially through
social media. Social media influencers hold an authoritative power to influence the masses
around the globe.
Intelligence is another essential factor that can play an important role in the development of
our personality. Our intellect can influence various aspects and areas of our behaviour which
in turn, can determine our personality. Here are the intellectual determinants of Personality:
Situational Factors
In our discussion of various determinants of personality, a vital mention should go to the
situational category. It would not be difficult for you to relate to the fact that we as humans,
react differently to distinct situations.
For Example: You may behave differently in front of your boss in the office than at a club
with your friends.
Family Factors
The most significant out of the different determinants of personality is that of familial. The
environment at home blended with the direct influence of the parents is the major
contributors to the traits that build our personality.
For example, a child brought up in a violent household will be quite different and emotionally
and socially timid and cold as compared to a child reared in a warm, adjusting and healthy
environment.
• Endomorphs
• Mesomorphs
• Ectomorphs
Endomorphs
In this category, People will have large body, wide hips, narrow shoulders, high body fat in arm and
legs etc.
Learning:
Meaning:
Learning can be defined as the permanent change in behavior due to direct and indirect experience. It
means change in behavior, attitude due to education and training, practice and experience. It is
completed by acquisition of knowledge and skills, which are relatively permanent.
In other word: Learning is the process of acquiring new understanding, knowledge, behaviors, skills,
values, attitudes, and preferences.
Types of Learners:
What are the different types of Learners?
1. Kinesthetic Learners
4. Auditory Learners
5. Natural Learners
6. Linguistic Learners
7. Interpersonal Learners
8. Intrapersonal Learners