Chapter 1 Fundamentals of Organizational Behavior

Organization is the foundation upon which the whole structure of management is built. Organization is related with developing a frame work where the total work is divided into manageable components in order to facilitate the achievement of objectives or goals. Thus, organization is the structure or mechanism (machinery) that enables living things to work together. In a static sense, an organization is a structure or machinery managed by group of individuals who are working together towards a common goal. Alike 'management', the term 'organisation' has also been used in a number of ways. broadly speaking, the term 'organisation' is used in four different senses: as a process, as a structure of relationship, as a group of persons and as a system, An organization is a collection of people who work together to achieve individual and organizational goals

Goals of Organisation Behavior

Explanation objective. It is probably the least important of the three goals because it occurs after the fact. If we are to understand something, however, we must begin by trying to explain it. The goal of prediction focuses on future events to determine what outcomes will follow from a given action. A manager can use this information when making decisions. The most controversial goal is using OB knowledge to control behavior. The idea that one person should attempt to get others to behave in a certain way, while the subjects may not know that their behavior is being manipulated, has been viewed in some circles as unethical and repugnant. While OB offers ways to control the behavior of people, whether those methods should be used is a question of ethics.

The Study of Organizational Behavior

Psychology is the science that seeks to measure, explain, and modify human and animal behavior. Psychologists study individual behavior. Those who have contributed to OB are learning theorists, counseling psychologists, and industrial and organizational psychologists. Sociology studies people in relation to their fellow human beings. Sociologys greatest contribution to OB has been in the areas of group behavior, work teams, organizational culture, communication, power, status, and conflict.

Social psychology blends the disciplines of sociology and psychology. This discipline has contributed to OB in several ways: measuring, understanding, and changing attitudes, communication patterns, and decision-making processes. Anthropology is the study of societies to learn about human behavior. Much of our current understanding of organizational culture and differences between national cultures is the result of the work of anthropologists. Political science is the study of behavior of groups and individuals within a political environment. This discipline has contributed to the understanding of how conflict is structured, power is allocated, and how self-interest is promoted.

What is Organizational Behaviour?

ORGNISATION BEHAVIOUR - CONCEPTS Organizational Behavior is field of study that investigates the impact that individuals, groups and structure have on behavior within organization. It is the study and application of knowledge about how people act within organizations. It is a human tool for human benefit. It applies broadly to the behavior of people in all types of organizations, such as business, government, schools and services organizations. It covers three determinants of behavior in organizations: individuals, groups, and structure. OB is an applied field. It applies the knowledge gained about individuals, and the effect of structure on behavior, in order to make organizations work more effectively. OB covers the core topics of motivation, leadership behavior and power, interpersonal communication, group structure and process, learning, attitude development and perception, change process, conflict, job design and work stress. Before studying organizational behavior, it is desirable to know the meanings of organization and management. Organizational behavior (OB) is the study of factors that affect how individuals and groups act in organizations and how organizations manage their environments. "Organizational behaviour is the study and application at knowledge about the how people - as individuals and a groups - act within organization. It strives to identify ways in which people can act more effectively." - Keith Davis "Organizational behaviour is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organization for the purpose of applying such knowledge toward improving an organization's effectiveness." Stephen P. Robbins OB is a systematic study of the actions and reactions of individuals, groups and subsystems.

 O.B. is the systematic study and careful application of knowledge about how people- as individuals and as members of groups act within organizations. It strives to identify ways in which people can act more effectively. O.B. is a field of study that investigates the impact that individuals, groups and structures have on behaviour within organizations for the purpose of applying such knowledge towards improving an organizations effectiveness. O.B. is the study and understanding of individual and group behaviour, patterns of structure inorder to help improve organizational performance and effectiveness.

Evolution of Organizational Behavior

The organizational behavior in the earlier period i.e. in 1913 as Industrial Psychology, where scientists studying Industrial Psychology analyzed individual differences among individuals working in organizations and influences physiological (physical) surrounding them, relying on the method or the scientific method to solve such problems, and was focused Working on the individual only. Then appeared the school of human relations in the years 1924 - 1927, at the hands of Elton Mayo and his colleagues, as adopted scholars and researchers on the study of human relations between different working groups to see how they interact with each other. It also impacted productivity and job satisfaction And the situation continued like this, where evolved human relations school movement in the forties and subsequent years, and so on hands Makjd and Likert and Ergerz, and most studies have focused on employees motivation and administrative leadership. In the late sixties and early seventies took studies and research in the field of human behavior and organizational interested not the worker and working groups, but also the interaction of employees in organizations working with the work itself, has opened this turn the door to show school organizational behavior, to develop this science and takes a formula serious To be a fertile ground and crucifixion stems.

Phases of evolution of OB
The first phase: began industrial psychology, who teaches the individual worker in terms of skills, attitudes and trends that characterized them, such as: intelligence, capacity and individual differences among workers Second Phase: Comes to the stage of the school of human relations that are interested individuals as groups, to see relationships among themselves and the impact on labor productivity and the job satisfaction.

Third Phase: Finally comes the stage of human behavior and organizational interested in studying the individual and the group, and their interaction individuals and groups with labor organizations and their surrounding environment and internal, and knowledge of the interaction between man and the organization operates.

Theoretical framework of Organizational Behavior

Initially psychology was developed using the mental thinking expressed by persons interested in developing the subject of psychology. But John B. Watson differed from that approach and he pioneered the approach in which visible behavior and visible environmental stimulus became the subject of study. B.F. Skinner developed this behavioristic framework further by bringing in the contingent environmental consequences. Behavior is not the outcome of stimulus alone, but it is an outcome determined by the stimulus as well as the contingent environmental consequences of a behavior. This means, there are alternative behaviors for the same stimulus and which behavior is exhibited by a person depends on expected environmental consequences. Cognitive perspective on psychology have developed by arguing that human beings are capable of thinking and concepts related to thinking must be brought into the subject of psychology whose objective is to explain behavior. Even though, one cannot see or observe thinking, still developing concepts related to thinking and using the concepts to explain behavior is required in psychology. Even though one cannot see or observe gravitation, the concept of gravitation is a useful concept in physics. Similarly, concepts related to thinking or cognition is to be developed and used in psychology was the argument of proponents of cognitive approach to psychology. The perspectives in psychology have influenced the development of organizational behavior Cognitive Framework Cognitive approach emphasizes the positive and freewill aspects of human behavior and uses concepts such as expectancy, demand, and intention. Cognition can be simply defined as the act of knowing an item of information. In cognitive framework, cognitions precede behavior and constitute input into the persons thinking, perception, problem solving, and information processing. The work of Edward Tolman can be used to represent the cognitive theoretical approach. According to Tolman, learning consists of the expectancy that a particular event will lead to a particular consequence. This cognitive concept of expectancy implies that organism is thinking about, or is conscious or aware of the goal and result of a behavior exhibited by it. It means that a person desires a goal and also knows the behavior that will lead to achievement of the goals.

In the subject of organizational behavior, cognitive approach dominates the units of analysis such as perception, personality and attitudes, motivation, behavioral decision making and goal setting. Behavioristic Framework Pioneer behaviorists Ivan Pavlov and Jon B. Watson stressed the importance of studying observable behaviors instead of the elusive mind. They advocated that behavior could be best understood in terms of stimulus and response (S-R). They examined the impact of stimulus and felt that learning occurred when the S-R connection was made. Modern behaviorism, that marks its beginning with B.F. Skinner, advocates that behavior in response to a stimulus is contingent on environmental consequences. Thus, it is important to note that behavioristic approach is based on observable behavior and environmental variables (which are also observable). Social Cognitive Framework Social learning theory takes the position that behavior can best be explained in terms of a continuous reciprocal interaction among cognitive, behavioral, and environmental determinants. The person and the environmental situation do not function as independent units but, in conjunction with behavior itself, reciprocally interact to determine behavior. It means that cognitive variables and environmental variables are relevant, but the experiences generated by previous behavior also partly determine what a person becomes and can do, which, in turn, affects subsequently behavior. A persons cognition or

understanding changes according to the experience of consequences of past behavior.

Importance / Need / Advantages / Significance of Organization

State Steel Corporation', showed his confidence in organisation by uttering the following words, "Take away our factories, take away our trade, our avenues of transportation, our money, leave nothing but our organisation, and in four years, we shall re-established ourselves." Since ages and in every walk of life, organisation has been playing a vital role. It Facilitated Administration and management: It Help in the Growth of Enterprise It Ensures Optimum Use of Human Resources It Stimulates Creativity A Tool of Achieving Objectives

Prevents Corruption Co-ordination in the Enterprises Eliminates Overlapping and Duplication or work:

Challenges of OB 1.Responding to Globalisation-Increased foreign assignments ii) Working with People from different cultures iii) Coping with ant capitalism backlash. iv) Overseeing movement of jobs to countries with low- cost labor v) Managing people during the war on terror 2. Managing workforce Diversity. 3. Improving quality and productivity 4. Improving customer service 5. Stimulating innovation and changes 6. Working in networked organisations 7. Creating a positive work environment 8.Improving ethical behaviour Embracing diversity Changing demographics

Limitations of Organizational Behavior

Cannot abolish conflicts and frustrations but can reduce them. It is The Only one Of the many system operating within a large social system. A significant concern about organizational behavior is that its knowledge and techniques could be used to manipulate people without regard for human welfare. People who lack ethical values could use people in unethical ways. The law of diminishing returns also operates in the case of organizational behavior. It states, that at some point increase of a desirable practice produce declining returns and sometimes, negative returns

Reference book Luthans, Fred , Organizational Behavior, McGraw-Hill. Robbins, Organizational Behavior, Person K.Aswathappa, Organizational Behavior,Himalaya Publishing House.