ORGANIZATIONAL BEHAVIOR

UNIT – 1ST : ORGANIZATION

 INTRODUCTION : ORGANIZATION BEHAVIOR

Or g an i zat i o n al b e h avi o r (OB ) c an b e d e f in e d as t h e

understanding , prediction and management of human
behavior both individually or in a group that occur within an
organization .
‘Organization +Behavior =Organization Behavior’
Organization: An org. is a collection of 2 or more people who
work together to achieve pre –determined and agreed goals.
Behavior : It is verbal or physical response shown by a
p ers on as a con s equ en ce of t h e imp act of h is / h er
surroundings .
Meaning and Definitions of OB

Organizational Behavior is the study of individuals , group

and organizational systems.
OB is considered as an Art of applied science which deals
with the emotions , feelings , believes , perceptions,
intellectually and mentality of people working in an
organization.
Acc to Robbin “OB is field of study that investigates the
impact that individual , group and structure have on
behavior within org.
 Why to study OB ?

To understanding level of motivation and satisfaction of employees.

Skill development (To enhance abilities & knowledge )
To helps in increasing effectiveness & efficiency of the org.
-Effectiveness (doing the things right )/ Ability to perform a task.
- Efficiency (Performing or functioning in the best possible manner with the
least waste of time and effort)
To create healthy & ethical environment in the org.
OB helps in utilising the resources to the optimum level.
Overall , it improves the goodwill of the org.
 What is Organization

Organization means “People that work together”

In simple words, Org. refers to a group of two or more

persons who work together for achieving goals .

Acc to R.C Davis “Org. is a group of people who are co-

operating under the direction of leadership for the
accomplishment of a common end.”
 Contd….

Org. has basically been defined in three ways :

1- As a group of people

2- As a process

3- As a structure …..
Contd….
 Key elements and components of
organization

People

Structure

Technology

Environment

These are major factors that affect organization behavior …..

Contd….
Contd....
 Nature of Org. Behavior

 A Separate field of study and not a single discipline

 An interdisciplinary approach (information comes from various

discipline )
 An applied science

 A normative science

 It is a science as well as art

 A humanistic and optimistic approach

 A total system approach

 Contd….

1-A Separate field of study and not a single discipline : Discipline is an accepted
science that is based on theoretical foundation .But OB has multi-disciplinary and
not based on a specific theoretical background
2- An interdisciplinary approach : To study human behavior at work , Tries to
integrate the relevant knowledge drawn from related disciplines like – psychology ,
sociology and anthropology.
3-An applied science : Involves both applied research and its application in
organizational analysis.
4-A normative science : with the positive science discuss only cause effect
relationship . OB deals with what is accepted by individuals and society engaged in
an organization.
 Contd…..

5- A humanistic and optimistic approach : Treats people as

thinking and feeling human being . Based on the belief that people
have an innate desire to be independent, creative and productive.

6- A total system approach : The system approach is one that

integrates all the variables, affecting organizational functioning.
Disciplines contributing to OB

Psychology Sociology

Disciplines
contributing to
OB

Social – Psychology Anthropology

 Objectives of Org. Behavior

The main objective of organizational behavior is to

understand and the human interactions in an organisation .

OB objectives is to set up an org. culture ,hiring the best

people and creating meaningful connections among them ,
resolving the conflicts, developing the qualities of the
employees and establish a firm and clear leadership chain.
 Contd…..

There are most important objectives of O.B as -----

 Job satisfaction
 Finding the right people
 Organizational culture
 Leadership and conflict resolution
 Understanding the employees better
 Understanding how to develop good leader
 To develop a good team
 Higher Productivity
 Organizational Structure

What is an Organization :
A social unit of people , systematically structured and managed to
meet a need or to pursue collective goals on a continuing basis .

 Organizational structure is “the system of

arrangement ,the pattern or network of relations
between the various positions and their holders”.
 How that co-ordination is achieved , by whom , and
with what, dictates what the organization look like’’
 Contd…..

 The structure of every organization depends on how the

activities are ordered .

 Organizational structure refers to the way in which a

group is formed , its lines of communication , and its
means for channeling authority and making decisions.

 It clarifies the formal relationships of individuals in the

various positions within the organization.
 Why do we need an
organizational structure

All organizations have a management structure that

determines the relationships b/w functions and positions
and sub-divides and delegates role , responsibilities and
authority to carry out defined tasks .
 What is organizing ?

Organizing refers to the way in which the work of a group is arranged and distributed among
members to efficiently achieve the objectives of an organization.
Process of Organizing :
1- Determining the activities to be performed
2- Identification of major functions
3-Grouping and sub- dividing activities on the basis of relatedness or similarity
4- Establishing relationships among individuals and departments.
(a) Responsibility
(b) Authority
(c) Accountability
 Organizational structure

Structure refers to arrangements of parts and

interrelationships among activities and people.

The structure of an organization involves :

(a) The number of department , sections and positions in

which the department is been divided

(b) The levels of management

(c) The relationship among different parts and level

 Principles of organization

 Unity of command : each employee should report to only one supervisor .

 Unity of direction : all activity and all the task should be directed towards the
same mission and goal .
 Chain of command: a clear , unbroken chain of command should link every
employee with someone at a higher level, all the way to the top of the
organization.
 Span of control : number of sub- ordinates reporting to a manager.

 Division of work : with the division of work , employees have specialized jobs,
dividing work according to specialization.
 Standardization : developing uniform practices that employee are to follow
doing their jobs.
 Contd….

 Co-ordination : all departments , sections should work together to

accomplish organizational goals .
 Responsibility : obligation to achieve goals by performing required
activities .
 Authority : right to make decision , issue orders and use resources .
 Accountability: evaluation of how well individual meet their responsibility.

 Delegation : delegation is the process of assigning responsibility and

authority for attaining goals .
 Downsizing : it is a managerial activity aimed at reducing the size of an
organization’s workforce.
 Contd…..

 Line and staff relationships : Line employees are

responsible for achieving the basic and strategic
objectives of the organization while staff plays a
supporting role to line employees and provide services.
Departmentalization : process of horizontal clustering of
different types of functions and activities at one level of
the hierarchy .
Importance of organizational structure

Its enable members to know what their responsibilities.

It frees the manager and the individual workers to
concentrates on their respective roles and responsibilities
It coordinates all organization activities so there is
minimal duplication of effort or conflict .
Avoids overlapping of function because it pinpoints
responsibilities .
Shows to whom and for whom they are responsible
 Purpose :

 Divides work to be done in specific jobs & dept.

 Assigns tasks and responsibilities associated with

individual jobs.
 Co-ordinates diverse organizational tasks .

 Establishes relationship b/w individuals , groups and

departments.
 Establishes formal lines of authority.

 Allocates organizational resources .

Types/forms of org. structure

 1 : Line organization structure

 2 : Line & staff organization structure

 3 : Functional organization structure

 4: Project organization structure

 5: Matrix Organization structure

 6: committee organization structure

1 : Line organization structure

It is the oldest and simplest form of organization structure.

It is also known as Military ,vertical , departmental and

hierarchical org. structures.

In line org. , authority flows from the top to bottom vertically

in a straight line manager .

Responsibility and accountability flows in an opposite but

equally direct vertical manner.
Line org. structure may be two types :

1: Pure line org .

2- Departmental line org.

 Pure line org :

Pure line org. is one in which activities at a particular level

are the same .

Every employee at the same level performance and also

same type of work .

Departments are created for the sake of convenience to the

supervisor .
 Departmental line org.

Whole work of the organisation is divided into function

departments.

Such as – H.R , Production , Marketing , finance etc.

Each department work as a self sufficient unit under the

supervision of a departmental.
 Suitability of the line org.

This structure is suitable for the following types of buss.

Organisations.
 Small scale or sole proprietary org.

 Organisations with simple routine operations.

 Organizations having automatic and continuous production

function.
 Organizations having short chain of command .

 Organizations having a few sub – ordinates at each level.

2: Line & staff organization structure

 It is a modification over the basic line structure

 This structure combines the staff specialists /experts with the line
managers.
 The vertical flow of authority and responsibility remain the same
as in line structure.
 Additionally ,staff specialists are associated with line managers.

 Staff specialists / experts are the persons / departments , who

provide technical advice or service to the line managers .
 Line manager may or may not use their specialiser.
Suitability of line and staff org.

It is most suitable for medium and large organizations.

This structure is not suitable for small organization on

account of high cost involved in it.
 3 : Functional Organization

This credit for developing functional organisation structure goes to F.W.

Taylor.
This structure is based on the concept of functional foremanship.
In this structure , the line authority is channelized through the staff
specialists.
Line authority runs through many functional /experts ,who have the
authority to issue orders in their areas of specialisation .
For every department : Finance ,H.R, Marketing and production etc. their
exist an expert ,who has direct control over that department .
Thus , there is multiplicity of command instead of unity of command .
 4: Project organization

It is a temporary structure designed to accomplish a specific

task or project with the help of specialists drawn from different
functional departments within the organization.

It is lead by a project manager.

He draws specialists from different functional department and

assigns them activities necessary to accomplish the project .

Project manager is responsible for the co- ordination of all the

personnel on the project.
 Contd….

This type of structure is suitable for medium and large scale

project ,which needs to be completed within the specified
time and cost.

It is also suitable for projects involving complex , technical

activities .
 5: Matrix/ Grid organization

It is a Hybrid org . Structure .

It combines project org. structure and functional org.
structure
It is a permanent org. structure designed to accomplish a
specific project by using team of specialist drawn from
different functional departments within an org.
There are functional managers and project managers .
Team members are accountable to both functional manager
and project manager.
 Contd….

Advantages of Matrix organization :

 Sound decisions

 Development of skills

 Top management can concentrate on strategic planning responds to change environment

 Specialization

 Disadvantages of Matrix organization :

 Increase in work load

 High operational cost

 Absence of unity of command

 Difficulty of balance
 6 : Committee organization

It is a form of staff org. formed for giving specialised advice to line

managers.
A committee is a group of two or more appointed , nominated or elected
persons to consider ,discuss ,decide , recommed or report on some issue
or matter assigned to them .
Types of committee :
1- one the basis of duration 2- on the basis of purpose:
(a) Permanent committee (a) Advisory committee
(b) Ad Hoc Committees (b) Executive committee