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 organisations effectiveness. Definitions Organisational Behaviour is the study and application of nowledge about how people ! as individual and as groups ! act within organizations. "t 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 nowledge towards improving an organisations 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. Goals of OB To describe ! The first ob$ective is to describe ! how people behave under a variety of conditions. To understand ! as to why people behave as they do. To predict ! %redicting future employee behavior is another goal of OB. &anagers 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 tae preventive actions. To control ! The final goal of OB is to control and develop some human activity at wor. &anagers also want to mae an impact on employee behavior# sill development# team effort and productivity. &anagers should be able to improve the results through their own and their employees actions. Features of Organisational Behaviour The essential characteristics of organisational behaviour are as follows' (i) An Integral Part of Management. OB is a part of general management and not the whole of management. "t represents behaviour approach to management. "t is significant to note that because of the importance of human behaviour in organisations# OB has assumed the status of a distinct field of study. (ii) A Field of Stud. OB is a field of study baced by a body of theory# research and application associated with a growing concern for people at the worplace. "ts study helps in understanding the human behaviour in wor organizations. "t includes creative thining among the managers to solve human problems in organisations. (iii) Inter!disciplinar Approach. The field of organisational behaviour is heavily influenced by several other behavioural sciences and social sciences. The prominent among these are psychology, sociology and anthropology. Organisational behaviour draws a rich array of research from these disciplines. *hat maes it a field in its own right is the attempt to integrate various aspects and levels of behaviour. (iv) "evels of Analsis# OB involves three levels of analysis of behaviour individual behaviour, group behaviour and behaviour of the organisation itself. "t helps in demolishing +incorrect assumptions one may hold about behaviour. "t provides a rational thining about people. (v) Goal!Oriented# OB is an action ! oriented and goal,directed discipline. The ma$or goals of organisational behaviour are to understand# e-plain and predict human behaviour in the organisational conte-t so that it may be moulded into result,yielding situations. "t provides a rational thining about people and their behaviour. (vi) $uman Tool# OB is a human tool for human benefit. "t helps in understanding and predicting the behaviour of individuals. "t provides generalisations that managers can use to anticipate the effects of certain actions on human behaviour. (vii) Science and Art# OB is both a science as well as an art. The systematic nowledge about human behaviour is a science. The application of behaviour nowledge and sills clearly leans towards being an art. .owever# organisation behaviour is not an e-act science lie physics or chemistry. "t cannot provide specific answers to all organisational problems. The e-act prediction of behavior of people in organisations is also not possible. "t is possible to predict relationships between variables on a broad scale# but it is difficult to apply predictive models in all situations. (viii) Satisfaction of %mploees& 'eeds.%eople may get need satisfaction and the organisation may attain its objectives. Thus# both organisation and individuals can be benefited by each other. "evels of Analsis of OB Organisational Behaviour focuses on three levels of analysis# viz.#(i) Individual (ii) Group, and (iii) Organisation. The performance of individuals# groups (say class or section) and the institute as a whole ! are all important and outstanding performance of each individual and group is recognized and highlighted. Behaviour at all three levels is interdependent and interrelated. PS()$O"OG( "ndividual /evel' %ersonality# %erception 0ttitudes and 1alues "ndividual 2ecision,maing /earning &otivation# 3ob,satisfaction 4ocial# 5ultural and Other 6actors *or 4tress SO)IO"OG( 7roup /evel ' 7roups and Teams /eadership 5ommunication 5onflict# 2ynamics of 5hange 6ormal and "nformal Organisation 4tatus and 8oles SO)IA" PS()$O"OG( 5hange in 0ttitude and Behaviour 7roup %rocesses ' 9orms 5ommunication 7roup 2ecision,maing A'T$*OPO"OG( Organisation 4ystem /evel ' Organisational 5ulture 4tress &anagement Organisational 5hange and 2evelopment &orale and %roductivity 5ross,cultural 0nalysis I'DI+ID,A" G*O,P O*GA'ISATIO' Organisational Behaviour :.) Behaviour at the Individual Level , Organisations are made up of their individual members. The individual is a central feature of organisational behaviour# whether acting in isolation or as part of a group# in response to e-pectations of the organisation# or as a result of influence of the e-ternal environment. The behaviour of individuals is a comple- phenomenon and is affected by a large number of factors such as personality, attitudes, perception, learning, motivation, social, cultural and other factors. The study of behaviour of an individual woring in the organisation is also nown as micro organisational behaviour. ;.) Behaviour at the Group Level Behaviour pattern of individuals is also influenced by the groups to which they belong. 8esearch studies have shown people behave differently in groups than as individuals. 4everal factors influence the behaviour of groups such as group goals, norms, communication, leadership, cohesiveness# etc. <nderstanding of group dynamics is essential to reduce conflicts and improve morale and productivity. <nderstanding the effect of group relationships is important for managers in todays organisations. "nter group relationships may be in the form of cooperations or competition. The co,operative relationships help the organisation in achieving its ob$ectives. =.) Behaviour at the Organisation Level , 0n organisation is a system composed of several interdependent individuals and groups. "ndividuals and groups operate within the structure of formal organisation. They particapte in shaping the culture of the organisation and also in organisation development. 0t times# they may resist change# while they may fight for change in certain situations. 4tress caused by the activities of individuals and groups has to be managed at the organisational # group and individual levels. The study of behaviour from the perspective of the whole organisation is also referred to as macro organisational behaviour. IMPO*TA')% OF OB :) OB helps an individual to understand himself and others better. This will improve interpersonal relations considerably. 0ttitudes# perception# leaderships# communication# transactional analysis and conflicts can also be understood better with the study of OB. ;) 0 manager in a business establishment is concerned with getting things done through others. .e will be successful in his $ob when he can motivate his subordinates to wor for better results. OB will help the manager understand the basis of motivation and what he should do to motivate his subordinates. =) The field of OB will be successful in maintaining cordial industrial relations. "f an employee is slow in his wor# or if his productivity is readily declining# the basic issue may not be demand for more wages# higher bonus# a better canteen etc. This can be due to any other reasons lie the indifferent attitude of the boss towards the worer which in turn can lead to the worer loosing interest in his wor gradually. 4imilarly# reluctance of the management to tal to union leaders may provoe them to give a strie. .ence the relations between the management and the employees are often strained for reasons which are personal but not technical. >) OB helps in the field of marketing. "n the dynamic mechanism of the flow of goods and services from producer to consumer# 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. ?) OB helps in predicting the behaviour of individual and thus help the organization to be effective having good +people sills which includes the ability to understand ones employees and to use this nowledge to mae them wor efficiently is a vital re@uirement if a person has to succeed as a manager. A) Bffective management means competent utilization of technical and financial resources. OB is a discipline which enables a manager to motivate his subordinates towards higher productivity and better results. Forces Affecting Organi-ational Behaviour The four ey forces that affects Organization Behaviour :. %eople ;. 4tructure =. Technology >. Bnvironment :. People! %eople mae up the internal social system of the organization. That system consists of individuals C group C large groups as well as small ones. There are unofficial informal groups C official formal groups. 7roups are dynamic in the sense that they form# change C disband. %eople wor in the organization to achieve their ob$ectives. The worforce of an organization# however is very diverse in terms of their educational bacgrounds# talents C perspectives to their $obs. The managements leadership practices have to be tuned to the diverse worforce. 4ome companies have developed a sense of caring# really listening to the employees# developing the competence level of the employees# building pride without devaluing others# empowering some without e-ploiting others# demonstrating openness# confidence# authentic compassion and vulnerability. ;. Structure ! 4tructure defines the formal relationship and use of people in organization. "t defines the roles C relationship of people in an organization. 2ifferent $obs are performed by different people in an organization C these people are related to each other in some structural way so as to coordinate their wor effectively. The structure defines the authority,responsibility relationship. One has the authority C the others have a duty to obey him. 4ome organization have resorted to a flatter structure (containing fewer levels# a goal attained by cutting middle management position)# other have a comple- structure as a result of mergers# ac@uisitions C new ventures. 4ome organizations have hired contingent worforces (tempory# part,time or contract employees)# some firms have developed a team,based structure. =. Technolog! Technology provides the resources with which people wor C affects e tas that they perform. The people are given the assistance of machines# methods C resources. Technology allows people to do more C better wor but it adds to the cost for e-amples, "ncreasing use of robots C automated control systems in assembly lines# the dramatic shift from a manufacturing to a service economy# advances in computer hardware C software capabilities# use of internet C improved @uality of goods C services at acceptable prices. 0ll these technical advancements e-erts an increased pressure on OB to maintain a delicate balance bDw technical C social systems. >. %nvironment! Organisations are influenced by e-ternal environment which include socio,cultural# economic# politico,legal# geographical forces. 0ll organisations operate within an internal C e-ternal environment. 0n organisation is always a part of a larger system with elements lie government# the family C other organizations. 0ny change in the environment creates demands on organizations. 5itizens e-pect organisations to be socially responsibleE there are new products C competition for customers. 0ny organization is influenced by its e-ternal environment. "t influences the attitudes of people# affects woring conditions C provides competition for resources C power. People %nvironment %nvironment Structure Technolog %nvironment Disciplines contributing to OB OB is not a discipline in itself but it uses nowledge concepts C principles from the other relevant disciplines. "t draws concepts C principles from behavioural. "t draws concepts C principles from behavioural sciences C the core disciplines of behavioural sciences are, :. %sychology ;. 4ociology =. 0nthropology OB draws concepts from social sciences also, :. Bconomics ;. .istory =. %olitical 4cience O*GA'ISATIO' )ontributions of core disciplines of behavioural sciences to OB :. Pscholog, The term psychology comes from the 7ree word psyche meaning soul or spirit. %sychology is a science of behaviour# the term behaviour. %sychology studies behaviour in various conditions, normal# abnormal# social# industrial# legal# childhood# adolescence# old age etc. "t also studies process of human behaviour lie learning# thining# memory# sensation# perception# emotion# feeling C personality. "ts contributions to behavioural science are in the field of learning# perception# motivation# individual C group decision maing# pattern of influence# and change in organization group process# vocational choice and satisfaction# communication# personnel selection C training. There is also a separate branch of industrial psychology which deals with the application of psychological facts C principles to the problem concerning human relations in organization. ;. Sociolog ! "t uses the scientific method in accumulating nowledge about mans social behaviour. "t studies the shared human behaviour# the way in which people act towards one another. "t studies social groups# social behaviour# society# customs# institutions# social class# status# social mobility and prestige. "ts subfields are, :. %olitical sociology ;. "ndustrial sociology =. 6amily sociology >. 4ociology lf /aw ?. Bducational sociology A. 4ociology of religion To the managerial practice# its contribution is in the field of bureaucracy# role structures social system theory# grp dynamics effect of industrialsation on the social behaviour etc. =. Anthropolog, 0nthropology combines the 7ree stem +anthropo meaning man C /ogy meaning science. .ence# 0nthropology is the sciences of man. "t studies civilization# forms of cultures C their impact on individual C grps# biological factures of man and evolutionary pattern# speech and relationship among languages. 0nthropology contributes in understanding the cultural effects on organization behaviour# effects of value systems# norms# sentiments# cohesion and interaction.
OT$%* DIS)IP"I'%S :) %)O'OMI)S' Bconomics contributes in understanding the decision process# and methods of allocating scarce resources in organizations and the impact of economic policy on organizations. ;) PO"ITI)A" S)I%')%' "t provides the basis for the conflicts in organisation# power and authority structure and overall administrative process. ,'D%*STA'DI'G $,MA' B%$A+IO,* OB helps to understand human behavior in the organisation ! at the individual level# interpersonal level# group level and inter group level. i) Individual "evel' OB helps to understand why and how an individual behaves in a particular way. .uman behaviour is a comple- phenomenon and is affected by a number of factors lie psychological# social# cultural etc. OB integrates these factors in order to understand human behaviour. ii) Interpersonal "evel . .uman behaviour has to be understood in terms interpersonal interactions because human beings have a natural tendency to socialize. OB helps to understand relationships in terms of superior subordinates relationships# peer relationships# role analysis# transactional analysis etc. iii) Group "evel' "ndividuals are times modified by group pressures. .ence it becomes important to study groups and group dynamics with special reference to norms# cohesion# goals# communication pattern# leadership and membership. 0n understanding of group behaviour is important organizational moral and productivity. iv) Inter Group "evel' "nter group relationships may be in the form cooperation or competition. OB helps to understand and achevie cooperative group relationships through interaction# rotation of members among groups# avoidance of win,loose situation and focuses on total group ob$ectives. MOD%"S OF OB A,TO)*ATI) MOD%", "n an autocratic model# managerial orientation is towards power. &anagers see authority as the only means to get the things done# C employees are e-pected to follow orders. 4o there is a high dependence on boss. This dependence is possible' employees live on the subsistence level. The organizational process is formal. The &anagement decides what is the best action for the people. The model is largely based on the theory - assumptions of &c7regor wherein the human beings are distasteful to wor C try to avoid respeonsiblity. 0 strict supervision is read to obtain a desirable performance from them. /ierts &anagement system can be compared with a model of OB. .is system (e-ploitative authoritative) in which motivation depends on physical security C some use of desire for status C better performance is ensured through $ear# threats punishment C occasional rewardsE communic is mostly one. *ay. i.e downward. There is little interaction sDw mangers C employees. The autocratic model represents traditional thining which is based on the economic concept of the man. .owever# with changing times# its acceptability is to a limited e-tent. But t is still a useful way to accomplish performance. %articularly where the employees can be motivated by physiological needs.
This usually happens at lower strata of the organization. ),STODIA" MOD%" , "n this model# the managerial orientation is towards the use of money to pay for employee benefits. The model depends on the economic resources of the organization C its ability to pay for the benefits. The employees are highly dependent on the organization. 0n organizational dependence reduces personal dependence on boss. The employees are able to satisfy their security needs (&aintenance factors in case of herzbergs theory). These maintenance factor provide security but do not provide strong motivation the employees woring under custodial model feel happy get ade@uate rewards C organization security but their performance level is not high as are not given any authority to decide what benefits D rewards they should get. This approach is @uite similar to patrimonial approach where the &anagement decides what benefits are best suited for the employees. .ence not a suitable model for matured employees. S,PPO*TI+% MOD%" ! This model depends on managerial leadership rather than on the use of power or money. The aim of managers is to support employees in their achievement of results. The focus is on employee participation in managerial decision maing process. The model is based on %rinciples of 4upportive relationships of /iert# which is the basic ingredient of his system >(participative). "t is similar to the assumptions of &c 7regors Theory F. The supportyive model is based on the assumptions that human beings move to the maturity level and they e-pect the organizational climate which supports this e-pectation. The organizational processes lie communication# leacdership# decision maing# interaction# control and influence help employees to fulfill their higher order needs lie self,actualisation and esteem. The supportive model is best suited when employees are self motivated. .ence# the focus is not on the economic resources of the organization but its human aspect. &anagers role is to help employees achieve their wor rather than supervising them closely. This model is specially effective with nations with affluence and comple- technology because it caters to higher,order needs and provides intrinsic motivational factors. "t is more suitable for employees at managerial levels rather than on operative levels. )O""%GIA" MOD%" ! This model is an e-tension of supportive model. The term 5ollegial refers to a body of people having a common purpose. "t is based on the team concept in which employee develops a high degree of understanding towards others and shares common goals. 8esponsibility is e-pected out of the employees. Bmployees need a little direction and control from the management. 5ontrol is through self disciple from the team members. The collegial model is conducive to self fulfillment C self,actualisation. "t can be more beneficial with unprogrammed wor re@uiring behavioural fle-ibility and intellectual environment and $ob freedom. S(ST%M MOD%" ! "t is one of the emerging models of OB. .erein# there is a strong search for a higher meaning at wor by the employeesE they want more than a pay chec C $ob security from their $obs. They loo for a wor that is ethical# enfused with integrity C trust and provides an opportunity to e-perience a growing sense of community among co,worers. To accomplish this# the managers demonstrate caring and a compassionate attitude and are sensitive to the needs of a diverse worforce. The role of a manager is to facilitate employee accomplishments through a variety of actions. "n turn# the employees realize and recognize the mutuality of company,employee obligations in a system model. There is a sense of psychological ownership for the organization and its products D services. The employees tae a responsibility for their own goals and actions# hence are self motivated. .ence# the employees needs are higher,order needs (social# status# esteem# autonomy# self,actualisation). The various models (0utocratic# 5ustodial# 4upportive# 5ollegial and 4ystem &odel) of OB are based on the assumption of the human characteristics and how they can wor best. They are basically constructed around need hierarchy. 0s the need hierarchy differs for different people# the same model cannot be used for all of them. The need hierarchy changes with the level of a person# level of his education# maturity level# personality factors and the type of wor environment. )hallenges and Opportunities for OB *esponding to Globalisation ! Organisations are no longer limited by national borders. &anagers have to be capable enough to wor with people across cultures. Being a manager# one needs to manage a wor!force which is different in needs# aspirations and attitudes. To wor effectively with these people# one needs to understand their culture, how it has shaped them and how can the management style be adapted to suit their differences. Managing /or0force diversit ! *hile globalization focuses on differences between people from different countries# worforce diversity focuses on differences among people with given countries. *orforce diversity means that organizations are heterogenous in terms of gender# race and ethnicity. The challenge for organizations# thus# is to mae themselves more accommodating to diverse groups of people by focusing on their different lifestyles# family needs and worstyles# while at the same time not discriminating. This involves providing diversity training, and revamping benefit programs to accommodate the different needs of different employees. 2iversity# if properly managed# can increase creativity and innovation in organizations as well as improve decision ma!ing by providing different perspectives on problems. If diversity is not properly managed, it leads to a higher turnover, more difficult communication and more interpersonal conflicts. Improving 1ualit and Productivit ! The managers often confront challenges to improve their organizations productivity and the @uality of products and services they offer. 6or this# they often have to implement programs of Guality management and %rocess 8eengineering. "uality #anagement ! (i) Constant attainment of customer satisfaction through the continuous improvement of all organizational processes. (ii) "mprovement in the @uality of everything that the organization does ! how the organization handles deliveries# how rapidly it responds to complaints etc. (iii) Accurate measurement ! Guality &anagement uses statistical techni@ues to measure the performance variables and then compare them with the standards D benchmars. (iv) mpo!erment of employees ! Guality management involves the people in the improvement process. Teams are used in G& programs as empowerment vehicles for finding and solving problems. $rocess %eengineering ! helps managers to reconsider how wor would be done and the organization restructured if they were starting over from the scratch. *esponding to the labour shortage ! Bconomic ups and downs are difficult to predict. "n :HHIs# the labour marets were tight as the world economy was robust. "t was difficult to fill vacancies with silled worers. "n ;II:# there was an economic recession ! lot of layoffs too place and hence the silled worers were in plenty. "t is also predicted that there will be a labour shortage for atleast :I,:? years. "n the latter part of the ;I th century# there was a huge increase in the number of women entering the worforce which was a new supply of talented and silled worforce. 0lso# the older worforce seem to be less interested to wor which can be attributed to improved pension plans# e-panded social security benefits and a healthy stoc maret. 2uring labour shortage# good wages and benefits are not the only means to get and eep silled employees. 9ewer recruitment and retention strategies have to be developed with the help of OB. Improving customer service ! OB can contribute to improving an organisations by showing managers how employee attitudes and behavior are associated with customer satisfaction. The management should focus on creating a customer & responsive culture ! a culture in which employees are friendly and courteous# accessible# nowledgeable# prompt in responding to customer needs and willing to do whats necessary to please the customer. Improving people s0ills ! Techni@ues should be developed to design motivating $obs# to improve upon the listening skills and to create effective teams. %mpo/ering people ! There has been a complete change in the relationship between managers and the employees. "ecision making now happens at the operating level. Bmployees have started having a full control of their wor. There is also a concept of self#managed teams wherein worers operate largely without bosses. By empowering employees# managers are learning how to give up control# and employees kno! ho! to take responsibility for their wor and mae appropriate decisions. )oping /ith 2Temporariness3 ! <nlie yesteryears# managing today includes long periods of ongoing change# interrupted occasionally by short periods of stability. The worers need to update their kno!ledge and skills continually to perform new $ob re@uirements. *or groups are also in a state of flu-. Barlier# employees were assigned to a specific wor group which was permanent. 4o there was security in woring with the same people. But now# !ork groups are temporary wherein members are from different departments and members eep changing and employee rotation is practiced to fill constantly changing wor assignments. Organisations also continuously reorganize their divisions# sell,off poor performing businesses# subcontract non,critical services and operations to other organisations and replace permanent employees with temporary worers. The managers and employees should now to cope with temporariness# to live with fle-ibility# spontaneity and unpredictability. Stimulating Innovation and )hange ! The organizations should foster innovation# continuously improve their @uality in order to beat competition. B-ample# The services of 2ominos has brought an end to a number of pizza parlours in the city. The challenge for managers is to stimulate the employees creativity. $elping emploees balance /or0 4 life conflicts 5 The line between the wor and non wor time of employees has become blurred# creating personal conflicts and stress. This can be due to the following reasons ! )reation of global organi-ations 5 Bmployees are re@uired to wor ;>JK. )ommunication technolog 5 %eople do their wor from any place at any time. "onger hours put in by the employees. Dual!career couples ! as a result married couples have lesser time to fulfill commitments bac home. 4o# managers should help in maing their worplace and $obs such that it helps the employee deal with wor D life conflicts. Improving ethical behavior ! Bmployees at times# face ethical dilemmas i.e. situations in which individuals are re@uired to define right and wrong conduct. 6or e-ample# 4hould they follow orders with which they dont personally agreeL 4hould they uncover illegal activities taing place in the companyL Managers and organi-ations are tring to tac0le this problem b ! o *riting and distributing codes of ethics to guide the employees. o 'eminars, wor!shops, similar training programs to try and improve ethical behavior. o %rovision for an inhouse advisor who can be contacted (anonymously) for assistance in dealing with an ethical issue. 0lso# they provide with protection mechanisms for employees who reveal internal unethical practices. "imitations of OB Behavioural bias 5 Behavioral bias gives a narrow viewpoint to the employees that emphasizes satisfying employee e-periences while overlooing the broader system of the organization. "t is more lie a tunnel vision in which people have narrow viewpoints as if they were looing through a tunnel. The concern for employees can be so greatly overdone that the original purpose of bringing people together, productive organizational outputs is lost. "t is wrong to assume that the ob$ective of OB is simply to create a satisfied worforce without worrying about customer service and productivity. B@ually# if a person is continuously concerned with production outputs without regard for employee needs is misapplying OB. Behavioural bias can harm the employees as well as the organizations.Too much of care can mae the employees dependent and unproductive. They may find e-cuses for failure and avoid taing responsibility for progress. They lac self discipline and self respect. The "a/ of Diminshing *eturns ! The /aw of diminishing 8eturns is a limiting factor in OB as in Bconomics which produces negative results. "n OB# this law states that at some point# increases of a desirable practice produce declining returns# eventually zero returns# and then negative returns asmore increases are added. 6or any situation# there is an optimum amount of a desirable practice# such as recognition or participation. *hen that point is e-ceeded# there is a decline in returns. 6or e-ample# too much security may lead to less employee initiate and growth. $ence6 organi-ational effectiveness is achieved not b ma7imi-ing one human variable but b /or0ing all sstem variables together in a balanced /a# ,nethical manipulation of people 5 The nowledge and techni@ues of OB are at times used to manipulate people unethically as well as to help them develop their potential. %eople who lac respect for the basic dignity of the human being could use OB for selfish ends and use people in unethical ways.