Unit-I

Introduction: Concept and nature of Organizational behavior; contributing

disciplines to the field of O.B.; O.B. Models; Need to understand human
behavior; Challenges and Opportunities.

Concept

Organizational behavior is the study and application of knowledge about

human behavior related to other elements of the organization such as
structure, technology and social system.

Meaning

Organizational behavior is the study of:

Human behavior in organizational setting

The interface between human behavior and the organization
The organization itself

Environment

Human Behavior in
Organizational Setting

The Individual
Organization Interface

The Organization

Environment
Definition:

Organizational behavior is a branch of the social sciences that seeks to

build theories that can be applied to predicting, understanding and
controlling behavior in work organizations.

Nature of Organizational Behavior

1. A Field of study and not a Discipline: A discipline is an accepted

science with a theoretical foundation that serves as the basis for
research and analysis. Organizational behavior, because of its broad
base, recent emergence, and interdisciplinary orientation, is not
accepted as science. We have just begun to synthesis principles,
concepts, and processes in this field of enquiry.

2. Interdisciplinary Approach: It integrates the relevant knowledge

drawn from different disciplines for some specific purpose. Draw
heavily from psychology, sociology and anthropology. It also takes
relevant things form economics, political science, law and history.

3. An Applied Science: Unlike pure science which concentrates on

fundamental researches, OB concentrates on application of various
researches to solve organizational problems.

4. Normative and Value Centered: Normative science prescribes how

the various findings of the researches can be applied to get
organizational results which are acceptable to the society, and it is a
matter of values to the people concerned.

5. Humanistic and Optimistic: There is an acceptance of the value of

the individual as thinking, feeling organism, and without these
considerations the organizations may not be fully operational as a
social entity. There is optimism about the innate potential of man to be
independent, creative, productive, and capable of contributing
positively to the objectives of the organization.

6. Oriented towards Organizational Objective: OB tries to integrate

both types of objective (Organizational and individual) so that these
 are achieved simultaneously. For this it suggests various behavioral
approaches.

7. A Total Systems Approach: Human behavior can be analyzed

keeping in view his psychological framework, interpersonal
orientation, group influence, and social and cultural factors (Total
System).

Basic Concepts of the Fields

INDIVIDUAL INTERPERSONAL ORGANIZATIONAL

PROCESSES PROCESSES PROCESSES

Foundations Communication Organization

Motivation Groups and Teams structure
Enhancing Leadership Organization design
Performance Decision Organization
Managing making culture / innovation
Stress /Negotiation Change /
Development

Organization level
Individual level outcomes
Outcomes Group Level
Outcomes Productivity
Productivity Performance
Productivity
Performance Turnover
Performance
Absenteeism Survival
Norms
Attitude Constituent
Cohesiveness
Turnover satisfaction
Group Satisfaction
Stress
Group Identity

Organizational Effectiveness
Contributing disciplines to the field of OB

1. Psychology: It is defined as science of behavior. Its contributions to

behavioral science are in the field of learning, perception, motivation,
individual and group decision making, pattern of influence and change
in organizations, group process, vocational choice and satisfaction,
communication and personnel selection and training.

2. Sociology: It is study of mans social behavior. Its contribution is

mainly in the field of bureaucracy, role structures, social system
theory, group dynamics, and effect of industrialization on the social
behavior.

3. Anthropology: It is defined as science of man. It contributes in

understanding the cultural effects on organizational behavior, effects
of value systems, norms, sentiments, cohesion and interaction.

4. Political Science: It provides clue to conflicts in organizations, power

and authority structure, and overall administrative process.

5. Economics: Contributes in understanding the decision process,

methods of allocating scarce resources in the organization and impact
of economic policy on organizations.

6. Law: For understanding of different laws applicable for protection of

human beings in the organization.

7. History: From history, case studies have emerged which has helped in
clarifying the roles of decision makers.

Organization Behavior Models

Model is an abstraction of reality, a simplified representation of some real-

world phenomenon.
OB Models

OB Models are developed to provide framework about how people

will be treated in an organization.
Models are based on assumptions.
Assumptions in OB are made on two extremes:
Trust every one, do not trust anyone
Theory X, Theory Y
Maturity, Immaturity
Davis has described four OB Models.

1. Autocratic Model

Managers see authority as the only means to get the things done and
employees are expected to follow orders.
Based on theory X assumptions
System I (exploitative authoritative) of Likert Management system is
followed.
Based on economic concept of man.
This generally happens at lower strata of the organization.

2. Custodial Model

Managerial orientation is towards the use of money to pay for

employee benefits.
Employees are able to satisfy their security needs or only maintenance
factors (Herzberg Theroy)
These fail to provide motivation (Dissatisfiers)
Similar to family managed system (Parents decide what is good, what
is bad for their children. Similarly manager decide for employees)

3. Supportive Model

Aim of managers is to support employees in their achievement of

results.
Focus is on participation and involvement of employees in managerial
decision making.
 Similar to System IV (Participative) of Likert management system and
Theory Y.
Best suited in conditions where employees are self motivated.
Implemented more on managerial levels as compared to operative
levels.

4. Collegial Model

Extension of supportive model.

It is based on team concept in which each employee develops high
degree of understanding towards others and shares common goals.
Control is through self discipline by the team members.
It is more useful with un-programmed work requiring behavioral
flexibility, an intellectual environment and job freedom.

Autocratic Custodial Supportive Collegial

Basis of Model Power Economic Leadership Partnership

Resources
Managerial Authority Money Support Teamwork
orientation
Employee Obedience Security and Job Performance Responsible
Orientation benefits behavior
Employee Dependence Dependence on Participation Self-Discipline
psychological on boss Organization
result
Employee Subsistence Security Status and Self-actualization
needs met Recognition
Performance Minimum Passive Awakened drives Moderate
Result Cooperation Enthusiasm

Need to understand Human Behavior

OB provides way for understanding human behavior in organization at
following levels:

1. Individual Level: Why and how an individual behaves in a particular

way. OB integrates psychological, social, cultural and other factors to
provide simplicity in understanding human behavior.

2. Interpersonal Level: Influence of ones peer and its effect in working

relationship, or superior subordinate relationship etc. are interpersonal
interactions. Common methods of OB which provide understanding in
such areas are transactional analysis, role analysis etc.

3. Group Level: Individuals are modified by group pressure. So

individual should be studied in a group also. OB provides
understanding of how a group behaves in its norms, cohesion, goals,
procedures, communication pattern, leadership and membership etc.

4. Inter group Level: Organization is made up of many groups and so

understanding group relationships is important for managers. These
relations may be in form of co-operation or competition. OB provides
means to understand and achieve co-operative group relationships
through interaction, rotation of members among groups, avoidance of
win-lose situation and focus on total group objectives.

After understanding the mechanism of human behavior, managers are

required to control and direct the behavior so that it conforms to standards
required for achieving organizational objectives.

Controlling and Directing Behavior

1. Use of Power and Sanction: Power is referred to as capacity of an

individual to take certain action and may be utilized in many ways.
Power and sanction are formally prescribed in such a way so that both
organizational and individual objectives are achieved simultaneously.

2. Leadership: OB identifies various leadership styles available to a

manager and analyses which style is more appropriate in a given
situation.
 3. Communication: To achieve organizational effectiveness, the
communication must be effective. The communication process and
how it works in interpersonal dynamics has been evaluated by OB.
The factors that affect communication have been analyzed so as to
make it more effective.

4. Organizational Climate: OB suggests the approach to create

organizational climate in totality rather than merely improving the
physiological conditions or increasing employee satisfaction by
changing isolated work process. It creates an atmosphere of effective
supervision, the opportunity for the realization of personal goals,
congenial relations with others at the work place, and a sense of
accomplishment.

Challenges and Opportunities

1. Creation of a Global Village

Managers have to become capable of working with people from

different cultures (cross cultural dynamics)
You can be transferred to a division operating in other country.
Even in our own country, the boss, peers or subordinates could be
from different cultures.
Differences in behaviors due to culture:
Individualism-Collectivism: People from individualistic
cultures tend to be more concerned about themselves rather
than their work group and individual tasks are more important
than relationships. Whereas, people from collectivism cultures
tend to base their identity on group and employer-employee
links are more like family relationships.
Power Distance: People coming from high power distance
cultures prefer to be in situation where authority is clearly
understood and lines of authority are never bypassed. Whereas,
people coming from less power distance countries have low
respect for authority and prefer flexible organizational rules.

2. From Everyones the Same to Workforce Diversity

 Workforce diversity means that organizations are becoming more
heterogeneous in terms of gender, race and ethnicity.
Managers will need to shift their philosophy from treating everyone
alike to recognizing differences and responding to those differences in
ways that will ensure employee retention and greater productivity and
no discrimination.

3. Toward Improving Quality and Productivity

Total Quality Management: A philosophy of management that is

driven by the constant attainment of customer satisfaction through the
continuous improvement of all organizational processes.
Re-engineering: Reconsider how work would be done and the
organization structured if they were being created from scratch.
Both things include employee efforts.

4. Improving People Skills

How to delegate authority

How to be an effective listener
Proper way to give performance feedback
How to create effective teams
Insights into your own behavior
Insights into behavior of others
Practice at improving your interpersonal skills

5. From Management Control to Empowerment

Managers have to learn how to give up control and employees have to

learn how to take responsibility for their work and make appropriate
decisions.
Empowerment will change leadership style, power relationships, the
way work is designed, and the way organizations are structured.

6. From Stability to Flexibility

 Today, change is an ongoing activity for managers, so workers need to
continually update their knowledge and skills to perform new job
requirements.
So managers and employees must learn to cope with temporariness
and learn to live with flexibility, spontaneity and unpredictability.

7. Improving Ethical Behavior

Ethical Dilemmas are increasing (Situations in which right and wrong

conduct has to be defined)
Managers have to distribute codes of ethics to guide employees
through ethical dilemmas.
Managers needs to create an ethically healthy climate for his or her
employees where they can do their work productively and confront
minimal degree of ambiguity regarding what constitutes right and
wrong behavior.

8. Increasing Workforce Aspirations

Employees not only want decent monetary package but highly

conducive workplace (openness, teamwork, quality of work life,
empowerment, flexible work schedules, telecommuting, and so on)
For meeting these aspirations of workforce, mangers have to create a
new type of work environment to stimulate employees to put their
best.