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Chapter I
Organisational Behaviour
Aim
The aim of this chapter is to:
defne the concept of organisation
introduce the basics of organisational behaviour
explain the importance of organisational behaviour
Objectives
The objectives of this chapter are to:
classify organisation
describe the factors infuencing an organisation
explain the fundamental concepts of organisational behaviour
Learning outcome
At the end of this chapter, you will be able to:
defne organisational behaviour
identify the concepts of organisational behaviour
understand the importance of organisational culture
Organisational Behaviour
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1.1 Introduction
An organisation is a man made system. A large group of people traveling in a bus, or watching a movie do not form
an organisation. An organisation requires people with purpose, goals and objectives. An organisation is a group
of people working together to achieve the common organisational goal (viz., production of goods or service) with
the help of people, machines and materials. Examples of an organisation are family, university, bank, Municipal
Corporation, government, army, etc.
1.1.1 Classifcations of Organisations
Industrial sector v/s Agricultural sector
Public Sector v/s Private Sector
Joint Sector v/s Co-operative Sector
Capital intensive
Labour intensive
Public limited
Private limited
Manufacturing sector
Service Sector
Large Scale
Small-Scale etc
1.1.2 Factors Infuencing an Organisation
People
Size
Technology
Environment
Management
1.2 Organisational Behaviour
Study shows that an individual spends maximum time of his life in the organisation than the time he spends on
other activities.
The subject of organisational behaviour deals with that part of life, which is spent working. It is also called on-the-
job life. Interestingly our off-the-job life is inter related and inter dependent on on-the-job life and vice-versa.
Defnitions
Keith Davis: A study of human behaviour at work.
Fred Luthans: An understanding, prediction and control of human behaviour in the organisation.
Stephen Robbins: A study that investigates the impact, individuals, groups and structures have on human
behaviour within the organisation.
S. K. Kapur: As a systematic study of actions and reactions of people working in an organisation in order to
improve the overall organisational performance.
Talya Bauer: As the systematic study and application of knowledge about how individuals and groups act
within the organisations where they work.
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1.2.1 Fundamental Concepts in Organisational Behaviour
As per defnitions, study of human behaviour is a very important part of organisational behaviour. It is essential
for modern managers to understand and predict human psychology in terms of behaviour. Thus, it is essential to
understand the organisational culture, which is formed by the organisational behaviour of the people over a long
period of time.
When new employees enter organisations, their stable or transient characteristics affect how they behave and
perform. Therefore, it is important to understand individual characteristics that matter for employee behaviours at
work. Important concepts of organisational behaviour are as follows:
Every individual is different
Every person is unique. Therefore, each person should be treated separately while managing people. A uniform
management style will not be applicable to all employees.
Every individual is a complete person
Each individual has his/her own likes-dislikes, opinions, views, attitude, knowledge, etc. Since the employee spends
more time in the organisations they work, they are expected to be happy on-the job as well as off-thejob.
Human behaviour has cause-effect relationship
It is necessary for managers to understand the beliefs and faiths of the people and also the cause-effect relationship
behind the behaviour, if they want to be effective managers.
Every individual has self esteem
People are different from machines and materials. They have self-respect and prestige. They expect their due respect
in day-to- day activities.
An organisation is a social system
The organisational behaviour of people depends upon their social status, social roles and social groups. As a result,
within every formal organisation, there exists an informal organisation, which infuences the formal organisation
to a large extent.
Mutual interests are inter-dependent
As organisation needs people, people too need the organisation to achieve their respective goals. There is
interdependence of interests. It is necessary that these are complementary and not contradictory.
A total view of organisation
When all the above aspects of organisational behaviour are taken in to consideration we can have a total view of
the organisation. This helps the managers understand human behaviour in the organisation, which results in the
necessary co-ordination between organisation, management and employees.
1.3 Importance of Organisational Behaviour for Managers
In the modern world, organisations are becoming increasingly complex with rapidly changing technology. As a
result, organisations are demanding more from their employees. Employees are called Human Resources because
they are not commodities. Managements have become aware that they have to treat their employees as human beings
and not as machines or materials. Therefore understanding the Organisational Behaviour of their employees is
extremely important for the managers of tomorrow.
Although the importance of organisational behaviour may be clear, we should still take a few moments to emphasise
certain points. People are born and educated in organisations, acquire most of their material possessions from
organisations, and die as members of organisations.
Many of our activities are regulated by organisations called governments. And most adults spend the better part of
their lives working in organisations. Because organisations infuence our lives so powerfully, we have every reason
to be concerned about how and why those organisations function. In our relationships with organisations, we may
adopt any one of several roles or identities.
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1.4 Behaviour Model for Organisational Effciency
Organisational behaviour is a study and application of managerial skills and knowledge to people in the organisation
to investigate individual and group behaviour. Various concepts and models in the feld of organisational behaviour
attempt to identify, not only the human behaviour but also modify their attitude and promote skills so that they can
act more effectively. This is done scientifcally; therefore, organisational behaviour feld is a scientifc discipline.
The knowledge and models are practically applied to workers, groups and organisational structure that provide tools
for improved behaviour and dynamics of relationship. The feld of organisational behaviour also provides various
systems and models for international relationship that are applied to organisations.
Leaders must look for indicators (effects) of individual behaviour and of groups in any organisation. Indicators
have a root cause beneath. As a leader, it is that symptom, which must be evaluated, and cause of human behaviour
established so that if the behaviour is good, the manager can establish the norms of behaviour. If the behaviour is
not conducive to achieve the organisational objective then suitable alternative model can be applied to channelise
individual behaviour towards an appropriate organisational value system and thus individual behaviour modifed.
An organisation has three basic elements namely, people, structure, and technology. An organisation must have
suitable organisational structure, with appropriate number of tier and reporting system properly explained. Principle
of unity of command, delegation of authority and responsibility, formulation of objectives and its allotment to
various groups is very important so that workers achieve a required level of job satisfaction. They must be trained
to handle sophisticated machines and equipment. It is the people, their value system, and faith in the leadership
that make an organisation. Leader must be able to describe, understand, predict and control individual behaviour
in the organisation.
Describe: Study of organisational behaviour is based on scientifc methods, which have been applied on human
beings. It is a science, that analyses as to how people behave in different situations in the organisation. A manager
should be able describe the behaviour of each of the individuals under his command, identify attitude, and be able
to pinpoint his behaviour so that the situation in the organisation is under control.
Understand: Leaders must understand human behaviour as to why people behave in particular manner and try to
identify reasons so that corrective actions can be taken.
Predict: By frequent closer interaction, a leader is in a position to identify the nature of workers. Some are more
productive while the others are tardy and disruptive. In such situation, a leader should be able to handle each
individual differently so that his or her actions can be channelised to higher productivity.
Control: Managers in the organisations should train their subordinates continuously; aim being development of
skills, promotion of productivity and improvement of individual behaviour. It is a continuous process on the part
of manager. He must lay down control measures so that the energy of workers is diverted towards organisational
objectives. Communication should be used to ensure that the behaviour of individual is controlled. Environment
has a great impact on human behaviour.
Appropriate internal environment would help organisations to built favourable work environment that will help
individuals and groups within organisations to work effectively towards higher productivity.
1.5 Organisational Components that Need to be Managed People
People are the main component of any organisation that has to be managed. Every individual has a personal goal to
be achieved. Organisations must identify the need spectrum of individuals and take suitable steps for its fulflment
to enable them to perform effectively so that they complete their allotted task in time. Relationship between the
workers, with subordinates and superiors should be established based on full understanding and complete faith based
on mutual trust so that it is easy to communicate and understand each others views. Work teams and Groups play
a vital role in the organisation. Individual may have to keep his personal interest aside if it conficts with team or
group goals. It is the team goals, accomplishment of which contributes towards achieving organisational goals.
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Structure
There are two types of organisations, formal and informal. Informal organisations do not have a specifed structure.
Formal organisations are building based upon the objective set for it. Organisational structure in such organisation
is hierarchical in nature, with people at each level having their own objectives, which contributes towards fulflment
of overall organisational objectives. In such organisations people at lower level report to higher level managers. The
tier system has the principle of unity of command inbuilt in it. The organisation structure may depend upon the size,
number of products/services produced, skill and experience of the employees, managerial staff and geographical
location of the organisation. An organisation may have several levels and pyramid like organisational structure or fat
structure. The effciency of the organisation will depend upon the free fow of the information, effcient communication
system prevailing in the organisation, well-defned authority and responsibility supported by detailed policies, rules
and regulations. The organisation must have well laid out systems, which are understood by workers, supervisors and
managers. The leader must keep open mind while dealing with subordinates and exercise full control over various
systems, levels and ensure planned productivity and achieve high level of job satisfaction.
Technology
Managing technology is an important job of any management. It is an important element of any unit. Selection
of technology, procurement, installation, operation and maintenance is important and no compromise should be
made in procuring latest or advanced technology. Various systems and sub- systems should support technology that
exists in an organisation. Based on the technology, an organisation should formulate job structure and resultant
procurement of human resource so that they are complimentary to each other. Adequate attention is also being paid
to service industry. For example an appropriate drill, procedures are installed in hospital industry to ensure that the
patients record is maintained properly. On line operations of all systems relating to admission record, past treatment,
drugs, availability of beds, schedule of operations maintained so that the level of patients satisfaction is raised. In
minimum number of days, maximum numbers of patients should be treated. Various processes required to regulate
these functions form the important part of service industry.
Jobs
Job is an assignment assigned to an individual. It encompasses various tasks within it. For example, Personnel
manager wants to fll up twelve vacancies in production department within three months. Job will have various tasks
inbuilt in it like designing of job specifcation, selection of media, advertising vacancies, scheduling of selection
and recruiting process. Manager, therefore have to manage various tasks to accomplish a particular job. This may
form a part of managerial functions.
Processes
Management of processes and its inter-dependence is very crucial to high productivity and higher job satisfaction.
What is important for a manager is to ensure high morale of the work force. To ensure this, he must identify various
managerial dictums. Select appropriate subordinates to carry out a job based on aptitude, personality traits, mental
build up and attitude. He should also involve himself and lead subordinates by personal example. In defence services,
it is the quality of leadership that motivates troops to achieve near impossible task where everything appears to be
going wrong. Various role models assist leaders in identifying as to which process, method or approach would be
suitable to mould subordinates in suitable frame that may be required by any organisation. Nothing motivates workers
better if you give them their entitlements in full and train them to take up higher jobs. By doing so, manager must
develop and build an organisational culture that will bind employees to a common cultural bond. During day-to-day
functions, managers must be transparent and maintain a high degree of value system and display ethical behaviour.
There are no short cuts to this and will pay rich dividends in times to come.
External Environment
What we have so far discussed is various components of an organisation that should be managed properly.
External environment also plays an important role in managing the points discussed above. When we talk about
managing people in the organisation, what we have to study and manage is the infuence of culture and its impact
on the individual. A manager should examine as to how he is going to cope up with the changes. Study of external
environment is very wide and encompasses economic, cultural, social, government rules and regulations, legal
aspects, political climate, demographics and its impact. If one scans the external environment that is prevailing
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in Indian context, one will fnd that individuals are racing to catch up the upper class as it relates to standards of
living, material possession, higher education, attempt to copy western culture, food habits, dressing pattern and
the like. Beauty parlours, pubs and cyber cafes around each corner are an ample evidence of the impact of external
environment. This trend has an impact on what products or services are on priority in the society and indicates the
behaviour of an individual. If the above factors are evaluated appropriately, a manager will be able to examine and
predict human behaviour in the organisation. It is therefore important to evaluate market situation, competitors, and
availability of raw material, technology, availability of skilled, semi skilled and non-skilled personnel. In addition,
evaluate prevailing culture and how individuals are likely to respond to the call of the organisation. Some factors
like government rules, and political stability keep changing, the organisations must cater for such contingencies.
Manager must therefore keep in mind the internal and external factors and make the best amalgam and work to
achieve organisational effectiveness.
1.6 Contemporary Organisational Behaviour
Contemporary organisational behaviour has two fundamental characteristics that warrant special discussion. It also
generally accepts a set of concepts to defne its domain.
1.6.1 Characteristics of the Field
Researchers and managers who use concepts and ideas from organisational behaviour must recognise that it has an
interdisciplinary focus and a descriptive nature; that is, it draws from a variety of felds and attempts to describe
behaviour (as opposed to prescribing how behaviour can be changed in consistent and predictable ways).
1.6.2 An Interdisciplinary Focus
In many ways, organisational behaviour synthesises several other felds of study. Psychology, especially organisational
psychology, is perhaps the greatest contributor to the feld of organisational behaviour. Psychologists study human
behaviour, whereas organisational psychologists specifcally address the behaviour of people in organisational
settings. Many of the concepts that interest psychologists, such as individual differences and motivation, are also
central to studying of organisational behaviour.
Sociology also has had a major impact on the feld of organisational behaviour. Sociologists study social systems
such as families, occupational classes, and organisations. Because a major concern of organisational behaviour is
the study of organisation structures, the feld clearly overlaps with areas of sociology that focus on the organisation
as a social system.
Anthropology is concerned with the interactions between people and their environments, especially their cultural
environment. Culture is major infuence on the structure of organisations as well as on the behaviour of individual
people within organisations.
Political science also interests organisational behaviourists. We usually think of political science as the study of
political systems such as governments. But themes of interest to political scientists include how and why people
acquire power, political behaviour, decision making confict, the behaviour of interest groups, and coalition formation.
These are also major areas of interest in organisational behaviour.
Economists study the production, distribution, and consumption of goods and services.
Organisational behaviourists share the economists interest of topics such as labour market dynamics, productivity,
human resource planning and forecasting, and cost-beneft analysis. Engineering has also infuenced the feld of
organisational behaviour. Industrial engineering in particular has long been concerned with work measurement,
productivity measurement, work fow analysis and design, job design, and labour relations. Obviously these areas
are also relevant to organisational behaviour.
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Most recently, medicine has infuenced organisational behaviour in connection with study of human behaviour at
work, specifcally in the area of stress. Increasing research is showing that controlling the causes and consequences
of stress in and out of organisational settings is important for the well-being of the individual as well as that of the
organisation.
1.6.3 A Descriptive Nature
A primary goal of organisational behaviour is to describe relationships between two or more behavioural variables. The
theories and concepts of the feld, for example, cannot predict with certainty that changing a specifc set of workplace
variables will improve an individual employees performance by a certain amount. At best, theories can suggest that
certain general concepts or variables tend to be related to one another in particular settings. For instance, research
might indicate that in one organisation, employee satisfaction and individual perceptions of working conditions
correlate positively. Nevertheless, we may not know if better working conditions lead to more satisfaction, if more
satisfed people see their jobs differently from unsatisfed people, or if both satisfaction and perceptions of working
conditions are actually related through other variables. Also, the observed relationship between satisfaction and
perceptions of working conditions may be considerably stronger, weaker, or nonexistent in other settings.
Organisational behaviour is descriptive for several reasons: the immaturity of the feld, the complexities inherent
in studying human behaviour, and the lack of valid, reliable, and accepted defnitions and measures. Whether the
feld will ever be able to make defnitive predictions and prescriptions is still an open question. But the value of
studying organisational behaviour nonetheless is frmly established. Because behavioural processes pervade most
managerial functions and roles, and because the work of organisations is done primarily by people, the knowledge
and understanding gained from the feld can help managers in signifcant ways.
1.7 Contextual Perspectives on Organisational Behaviour
Several contextual perspectives have increasingly infuenced organisational behaviour: the systems approach and
contingency perspectives, the interactional view, and the popular-press perspectives. Many of the concepts and
theories we discuss in the chapters that follow refect these perspectives; they represent basic points of view that
infuence much of our contemporary thinking about behaviour in organisations.
1.7.1 Systems and Contingency Perspectives
The systems and contingency perspectives take related viewpoints on organisations and how they function. Each
is concerned with interrelationship among organisational elements and between organisational and environmental
elements.
1.7.2 The Systems Perspective
The systems perspective, or the theory of systems, was frst developed in the physical sciences, but it has been
extended to other areas, such as management. A system is an interrelated set of elements that function as a whole.
An organisational system receives four kinds of inputs form its environment: material, human, fnancial, and
informational. The organisation then combines and transforms the inputs and returns them to the environment in
the form of products or services, profts or losses, employee behaviours, and additional information. Finally, the
system receives feedback from the environment regarding these outputs.
As an example, we can apply systems theory to an oil company. Material input includes pipelines, crude oil, and the
machinery used to refne petroleum. Financial input includes the money received from oil and gas sales, stockholder
investment, and so forth. Human input includes the effort put forth by oil feld workers, refnery workers, offce staff,
and other people employed by the company. Finally, the company receives information input from forecasts about
future oil supplies, geological surveys on potential drilling sites, sales projections, and similar analyses.
Through complex refning and other processes, these inputs are combined and transformed to create products such as
gasoline and motor oil. As outputs, these products are sold to the consuming public. Profts from operations are fed
back into the environment through taxes, investments, and dividends; losses, when they occur, hit the environment by
reducing stockholders incomes. In addition to having on-the-job contacts with customers and suppliers, employees
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live in the community and participate in a variety of activities away from the workplace. In varying degrees, at least
some part of this behaviour is infuenced by their experiences as workers. Finally, information about the company
and its operations is also released into the environment.
1.7.3 The Contingency Perspective
Another useful viewpoint for understanding behaviour in organisations comes from the contingency perspective. In
the early days of management studies, managers searched for universal answers to organisational questions. They
sought prescriptions that could be applied to any organisation under any conditions. For example, early leadership
researchers tried to discover forms of leadership behaviour that would always increase employee satisfaction and
effort. Eventually, however, researchers realised that the complexities of human behaviour and organisational settings
make universal conclusions virtually impossible. They discovered that in organisations, most situations and outcomes
are contingent; that is, the relationship between any two variables is likely to be infuenced by other variables.
Universal Approach
Organizational
problems or situations
determine
The one best way of
responding.
Contingency Approach
Organizational
problems or situations
must be evaluated in
terms of
Elements of the situation,
which then suggest
Contingent ways of
responding.
Fig. 1.1 Universal versus contingency approaches
1.8 Interactionalism
Interactionalism is a relatively new approach to understanding behaviour in organisational settings. First presented
in terms of interactional psychology, this view assumes that individual behaviour results from a continuous and
multidirectional interaction between the characteristics of a person and characteristics of a situation. More specifcally,
interactionalism attempts to explain how people select, interpret, and change various situations. This interaction is
what determines the individuals behaviour.
The interactional view implies that simple cause-and-effect descriptions of organisational phenomena are not enough.
For example, one set of research studies may suggest that job changes will lead to improved employee attitudes.
Another set of studies may propose that attitudes infuence how people perceive their jobs in the frst place. Both
positions are probably incomplete: employee attitudes may infuence job perception, but these perceptions may in
turn infuence future attitudes. Because interactionalism is a fairly recent contribution to the feld, it is less prominent
in the chapters that follow than the systems and contingency theories. Nonetheless, the interactional view appears
to offer many promising ideas for future development in the feld.
Individual
Behavior
Situation
Fig. 1.2 The interactionist perspective on behaviour in organisations
While some of the evidence provided by current research is open to a variety of different interpretations, they have
focused popular attention on many of the important issues and problems confronting business today. As a result,
managers of the 1990s better appreciate both their problems and their prospects in working toward more effective
organisational practices in the years to come.
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Summary
Organisational behaviour deals with that part of life, which is spent working. It is also called on-the-job
life.
Employees are called Human Resources because they are not commodities. Managements have become aware
that they have to treat their employees as human beings and not as machines or materials.
The organisational behaviour of people depends upon their social status, social roles and social groups. As a
result, within every formal organisation, there exists an informal organisation, which infuences the formal
organisation to a large extent.
Despite the advancement in technology, the importance of people in an organisation cannot be undermined.
Organisational behaviour is a study and application of managerial skills and knowledge to people in the
organisation to investigate individual and group behaviour.
Study of organisational behaviour is based on scientifc methods, which have been applied on human beings.
Organisations must identify the need spectrum of individuals and take suitable steps for its fulflment to enable
them to perform effectively so that they complete their allotted task in time.
Contemporary organisational behaviour has two fundamental characteristics that warrant special discussion.
The interactional view implies that simple cause-and-effect descriptions of organisational phenomena are not
enough.
References
Bauer, Erdogan, T. & Berrin, 2010. Understanding Organisational Behaviour. In: Bauer, Talya and Erdogan,
Berrin. Organisational Behaviour.
Hitt, M. A., Miller, C.C. & Collela, A., 2009. Organisational Behaviour, 2nd ed., John Wiley & Sons, Inc.
Organisational Behaviour, [Online] Available at: <http://www.fatworldknowledge.com/pub/organisational-
behavior-v1.1/141353#web-141351> [Accessed 5 October 2010].
Davis, Leadership and organisational behaviour, [Online] Available at: <http://www.nwlink.com/~donclark/
leader/leadob.html> [Accessed 14 August 2012].
Lepelley, D., 2012, Organisational behaviour in business Part 1, [Video online] Available at: <http://www.
youtube.com/watch?v=SS8GSPdej-k> [Accessed 14 August 2012].
Dr. Wicker, D., Organisational behaviour, [Video online] Available at: <http://www.youtube.com/
watch?v=0dAATdGxSGk> [Accessed 14 August 2012].
Recommended Reading
Colquitt, LePine, J., Wesson, M., 2010. Organisational Behaviour: Improving Performance and Commitment
in the Workplace. 2nd ed., McGraw-Hill/Irwin.
Schermerhorn, J.R., Dr. Hunt, J.G. & Dr. Osborn, R. N., 2010. Organisational Behaviour 11th ed., Wiley.
Kreitner, R. & Kinicki, A., 2009. Organisational Behaviour, 9th ed., McGraw-Hill/Irwin.
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Self Assessment
Which of the following statements is false? 1.
An organisation requires people with purpose, goals and objectives a.
Organisations are not demanding more from their employees b.
Understanding the Organisational Behaviour of their employees is extremely important c.
An organisation is a group of people working together to achieve the common organisational d.
goal
Match the following. 2.
1. Keith Davis
A As the systematic study and application of knowledge about how individuals and
groups act within the organisations where they work.
2. Fred Luthans
B As a systematic study of actions and reactions of people working in an organisation
in order to improve the overall organisational performance.
3. Stephen
Robbins
C As a study that investigates the impact, individuals, groups and structure have on
human behaviour within the organisation
4. S.K.Kapur
D As understanding, prediction and control of human behaviour in the
organisation.
5. Talya Bauer E As a study of human behaviour at work.
1-E,2-D,3-C,4-B,5-A a.
1-B,2-A,3-D,4-C,5-E b.
1-C,2-D,3-E,4-A,5-B c.
1-C,2-D,3-A,4-B,5-E d.
Which of the following concepts result in the necessary co-ordination between organisation, management and 3.
employees?
An organisation is a social system a.
A total view of organisation b.
Mutual interests are inter-dependent c.
All behaviour has cause-effect relationship d.
Management of _____________ and its inter-dependence is very crucial to high productivity and higher job 4.
satisfaction.
Processes a.
Finance b.
Technology c.
Environment d.
Which of the following is a type of organisation? 5.
Capital intensive a.
People intensive b.
Technology sector c.
Management sector d.
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Which of the following is not an example of an organisation? 6.
University a.
Book b.
Army c.
Movie theatre d.
Study of ______________ is a very important part of organisational behaviour. 7.
human behaviour a.
human psychology b.
human strength c.
human physiology d.
Employees are called 8. because they are not commodities.
Human resources a.
Human liabilities b.
Human Capital c.
Human asset d.
______________ is concerned with the interactions between people and their environments. 9.
Anthropology a.
Interactionalism b.
Contingency c.
Organisational behaviour d.
___________ must have suitable organisational structure, with appropriate number of tier and reporting system 10.
properly explained.
Manager a.
Organisation b.
Psychologists c.
System d.
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Chapter II
Approaches and Models of Organisational Behaviour
Aim
The aim of this chapter is to:
explain various approaches to organisational behaviour
describe the models of organisational behaviour
elucidate the importance of personal and work life relationship
Objectives
The objectives of this chapter are to:
enlist four approaches to organisational behaviour
explain fve different models of organisational behaviour
elucidate the interdependence of personal-life and work-life
Learning outcome
At the end of this chapter, you will be able to:
identify approaches to organisational behaviour
enlist fve different models of organisational behaviour
understand the relationship between personal life and work-life
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2.1 Introduction
Organisational behaviour of people can be studied from various angels. These angels are called the approaches to
organisational behaviour. Virtually all organisations have managers with titles like marketing manager, director
of public relations, vice president for human resources, and plant manager. But probably no organisation has a
position called organisational behaviour manager. The reason for this is simple: organisational behaviour is not an
organisational function or area. Instead, it is best described as a perspective or set of tools that all managers can use
to carry out their jobs more effectively.
By understanding organisational behaviour concepts, managers can better understand and appreciate the behaviour
of those around them. For example, most managers in an organisation are directly responsible for the work-related
behaviours of a set of other peopletheir immediate subordinates. Typical managerial activities in this area include
motivating employees to work harder, ensuring that their jobs are properly designed, resolving conficts, evaluating
their performance, and helping them set goals to achieve rewards. The feld of organisational behaviour abounds
with theory and research regarding each of these functions. Unless they happen to be CEOs, managers also report
to others in the organisation (even the CEO reports to the board of directors). In working with these individuals,
understanding basic issues associated with leadership, power and political behaviour, decision making, organisation
structure and design, and organisation culture can also be extremely benefcial.
Again, the feld of organisational behaviour provides numerous valuable insights into these processes.
Managers can also use their knowledge from the feld of organisational behaviour to better understand their own
behaviours and feelings. For example, understanding personal needs and motives, how to improve decision-making
capabilities, how to respond to and control stress, how to better communicate with others, and the way in which
career dynamics unfold can all be of enormous beneft to individual managers. Organisational behaviour once again
provides useful insights into these concepts and processes.
2.2 Some of the Important Approaches
Following are the important approaches of organisational behaviour
2.2.1The Inter-Disciplinary Approach
This approach states that in order to study the organisational behaviour, it is necessary to understand the interactions
and interdependence between the various aspects of human life.
2.2.2 The Human Resources Approach
This approach states that the management of an organisation should support training and development of employees,
since it yields better results. This leads to employee and organisation growth.
2.2.3 The Systems Approach
This approach looks upon the management as a System with various sub-systems. The attention should be given
to overall effectiveness of the system rather than effectiveness of any sub-system in isolation.
2.2.4 The Contingency Approach
This approach states that each situation should be dealt uniquely, with special thinking and decision making. The
various approaches to the study of organisational behaviour have given rise to different models.
2.3 Models of Organisational Behaviour
Following are various models of organisational Behaviour
The autocratic model
This model assumes that authority of superiors and obedience is central to results. Obedience of subordinates is due
to two reasons: respect for knowledge and fear of punishment in case of disobedience.
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The custodian model
This model assumes that organisational behaviour depends upon economic resources. Employees work for money
and job security. The management takes the role of guardian and custodian of their employees and their wealth.
The supportive model
This model assumes that management plays role of supportive leadership. Employees show an initiative and drive
for performance through their involvement and participation in the organisational activities. Employees need support,
status and recognition for their performance.
The collegial model
The model is based on the assumption that the main need of employees is self actualisation and they exhibit responsible
behaviour. The management must build teams and encourage participation in decision making.
The SOBC model
It is based on the philosophy that human behaviour is caused and follows the cause-effect relationship. SOBC
stands for Stimulus, Organism, Behaviour, Consequences.
Stimulus: Is the cause
Organism: Can be an individual or group.
Behaviour: Is expressed in terms of action or response.
Consequences: Are results.
Stimulus>Organism>Behaviour>Consequences
Parameter basis Autocratic Custodial Supportive Collegial
Managerial orientation Authority Money Support Teamwork
Employee orientation Obedience Job security Performance Responsibility
Employee psychology
Dependence on
boss
Dependence on
organisation
Participation Self discipline
Employee needs Survival Maintenance
Self esteem&
recognition
Self actualisation
Performance results Minimum Passive co-operation Effcient Effective
Level of morale Compliance Satisfaction Motivation Commitment
Table 2.1 Tabular representation of models
The philosophy (model) of organisational behaviour held by management consists and integrated set of assumptions
and beliefs about the way things are, the purpose for these activities, and the way they should be.
These philosophies are sometimes explicit, and occasionally implicit, in the minds of manager.
Five major organisational behaviour philosophies includes autocratic, custodial, supportive, collegial and
system.
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2.3.1 Two Sources of Model of Organisational Behaviour
Fact premise are acquired through direct and indirect lifelong learning and are very useful in guiding our
behaviour.
Value premise represent our views of the desirability of certain goals and activities.
Value premises are variable beliefs we hold and are therefore under our control.
2.3.2 Goals
Goals are relatively concrete formulations of achievements the organisation is aiming for within set periods of time,
such as one to fve years.
Goal setting is a complex process, for top managements goals need to be merged with those of employees, who
bring their psychological, social, and economic needs with them to an organisation.
2.4 Managerial Functions
The four basic managerial functions in organisations are planning, organising, leading, and controlling. By applying
these functions to the various organisational resources human, fnancial, physical, and informational the organisation
achieves different levels of effectiveness and effciency.
Planning: The managerial function of planning is the process of determining the organisations desired future position
and deciding how best to get there. The planning process at Sears, Roebuck, for example, includes scanning the
environment, deciding on appropriate goals, outlining strategies for achieving those goals, and developing tactics
to execute the strategies. Behavioural processes and characteristics pervade each of these activities. Perception, for
instance, plays a major role in environmental scanning, and creativity and motivation infuence how managers set
goals, strategies, and tactics for their organisation.
Organising: The managerial function of organising is the process of designing jobs, grouping jobs into manageable
units, and establishing patterns of authority among jobs and groups of jobs. This process designs the basic structure,
or framework, of the organisation. For large organisations like Sears, the structure can be expensive and complicated.
As noted earlier, the processes and characteristics of the organisation itself are a major theme of organisational
behaviour.
Leading: Leading is the process of motivating members of the organisation to work together toward the organisations
goals. A manger must hire and train employees. Major components of leading include motivating employees, managing
group dynamics, and leadership per se, all of which are closely related to major areas of organisational behaviour.
Controlling: A fnal managerial function, controlling, is the process of monitoring and correcting the actions of
the organisation and its people to keep them headed toward their goals. A manger has to control costs, inventory,
and so on. Again, behavioural processes and characteristics play an important role in carrying out this function.
Performance evaluation and reward systems for example, are all aspects of controlling.
2.5 Inter-Relationship between Personal Life and Work Life
Research has revealed that organisational behaviour of an employee is a result of a constant interaction between
personal life and work life. Employee happy with the work-life tends to be happy with the personal-life. The reverse
may not be always true.
2.5.1 Managerial Roles
In an organisation, as in a play or a movie, a role is the part a person plays in a given situation.
Managers often play a number of different roles. Much of our knowledge about managerial roles comes from the
work of Henry Mintsberg. Mintzberg identifed ten basic managerial roles clustered into three general categories.
Organisational Behaviour
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Managements
Philosophy Values Vision Mission Goals
Formal
Organisation
Leadership Communication Group
Dynamics
Organisational Culture
Quality of Work Life (QWL)
Outcomes
Performance
Employee satisfaction
Personal growth and development
Motivation
Social
Environment
Informal
Organisation
Fig. 2.1 Elements of organisational behaviour
Interpersonal roles
Mintzbergs interpersonal roles are primarily social in nature; that is, they are roles in which the mangers main task
is to relate to other people in certain ways. The manager sometimes many serve as a fgurehead for the organisation.
Taking visitors to dinner and attending ribbon-cutting ceremonies are part of the fgurehead role. In the role of
leader, the manager works to hire, train, and motivate employees. Finally, the liaison role consists of relating to
others outside the group or organisation. For example, a manger at Intel might be responsible for handling all price
negotiations with a major supplier of electronic circuit boards. Obviously, each of these interpersonal roles involves
behavioural processes.
Informational roles
Mintsbergs three informational roles involve some aspects of information processing. The monitor actively seeks
information that might be of value to the organisation in general or to specifc managers. The manager who transmits
this information to others is carrying out the role of disseminator. The spokesperson speaks for the organisation
to outsiders. For example, the manager chosen by Apple Computer to appear at a press conference announcing a
merger or other major deal, such as a recent decision to undertake a joint venture with Microsoft, would be serving
in this role. Again, behavioural processes are part of these roles because information is almost always exchanged
between people.
Decision-making roles
Finally, Mintsberg identifed four decision-making roles. The entrepreneur voluntarily initiates change, such as
innovations or new strategies, in the organisation. The disturbance handler helps settle disputes between various
parties, such as other mangers and their subordinates. The resource allocator decides who will get whathow
resources in the organisation will be distributed among various individuals and groups. The negotiator represents
the organisation in reaching agreements with other organisations, such as contracts between management and labor
unions. Again, behavioural processes are clearly crucial in each of these decisional roles.
2.5.2 Managing for Effectiveness
A fnal set of issues we address in this chapter relates to the consequences of management. More specifcally, what
are the outcomes of different types of and approaches to management? Three basic levels of outcomes determine
organisational effectiveness: individual-, group-, and organisation-level outcomes. Developing management skills
provides some additional perspectives on the importance of these outcomes.
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Individual-level outcomes
Several different outcomes at the individual level are important to managers. Given the focus of the feld of
organisational behaviour, it should not be surprising that most of these outcomes are directly or indirectly addressed
by various theories and models.
Individual behaviours
First, several individual behaviours result from a persons participation in an organisation. One important behaviour
is productivity. Productivity, as defned in terms of an individual, is an indicator of an employees effciency and
is measured in terms of the products or services (or both) created per unit of input. For example, if Bill makes 100
units of a product in a day and Sara makes only 90 units in a day, then, assuming that the units are of the same
quality and Bill and Sara make the same wages, Bill is more productive than Sara. Performance, another important
individual-level outcome variable, is a somewhat broader concept. It is made up of all work-related behaviours. For
example, even though Bill is highly productive, he may also refuse to work overtime, express negative opinions
about the organisation at every opportunity, and do nothing unless it falls precisely within the boundaries of his job.
Sara, on the other hand, may always be willing to work overtime, is a positive representative of the organisation,
and goes out of her way to make as many contributions to the organisation as possible. Bases on the full array of
behaviours, then, we might conclude that Sara actually is the better performer.
Individual attitudes
Another set of individual-level outcomes infuenced by managers consists of individual attitudes. Levels of job
satisfaction or dissatisfaction, organisational commitment, and organisational involvement are all important in
organisational behaviour.
Stress
Stress is another important individual-level outcome variable. Given its costs, both personal and organisational, it
should not be surprising that stress is becoming an increasingly important topic for both researchers in organisational
behaviour and practicing managers.
2.6 Group and Team-Level Outcomes
Another set of outcomes exists at the group and team level. In general, some of these outcomes parallel the individual-
level outcomes just discussed. For example, if an organisation makes extensive use of work teams, team productivity
and performance are important outcome variables. On the other hand, even if all the people in a group or team have
the same or similar attitudes toward their jobs, the attitudes themselves are individual-level phenomena. Individuals,
not groups, have attitudes.
2.7 Organisation-Level Outcomes
Finally, a set of outcome variables exists at the organisation level. As before, some of these outcomes parallel those
at the individual and group levels, but others are unique. For example, we can measure and compare organisational
productivity. We can also develop organisation level indicators of absenteeism and turnover. But fnancial performance
is generally assessed only at the organisation level.
In terms of fnancial performance, organisations are commonly assessed on stock price, return on investment, growth
rates, and the like. They are also evaluated in terms of their ability to survive and the extent to which they satisfy
important constituents such as investors, government regulators, employees, and unions.
Organisational Behaviour
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Summary
Five major organisational behaviour philosophies includes autocratic, custodial, supportive, collegial and
system.
The managerial function of planning is the process of determining the organisations desired future position
and deciding how best to get there.
Stress is another important individual-level outcome variable. Given its costs, both personal and organisational,
it should not be surprising that stress is becoming an increasingly important topic for both researchers in
organisational behaviour and practicing managers.
A manger has to control costs, inventory, and so on. Again, behavioural processes and characteristics play an
important role in carrying out this function.
The interrelationship between personal life and work life cannot be overlooked. Hence it is extremely important
for mangers to understand various aspects of organisational behaviour in the light of various approaches and
models discussed in this chapter.
Financial performance is generally assessed only at the organisation level. In terms of fnancial performance,
organisations are commonly assessed on stock price, return on investment, growth rates, and the like
References
Zachary, W. B., Kuzuhara, L.W., William, B. & Loren, W., 2004 . Organisational Behaviour: Integrated Models
and Applications, 1st ed., South-Western College Pub.
Ivancevich, J., Konopaske, R. & Matteson, M., 2007 . Organisational Behaviour and Management, 8th ed.,
McGraw-Hill/Irwin.
Dr. Wicker, 2008, Organisational behaviour, [Video online] Available at: <http://www.youtube.com/
watch?v=Xkmt6yuze14> [Accessed 18 August 2012].
Dr. Wicker, D., 2008, Organisational behaviour lecture 3, [Video online] Available at: <http://www.youtube.
com/watch?v=eKJ3lyUMCzc> [Accessed 18 August 2012].
Chen, X., Organisational behaviour and human processes, [Online] Available at: <http://www.journals.elsevier.
com/organizational-behaviour-and-human-decision-processes/> [Accessed 18 August 2012].
Sarab, Models of Organisational behaviour, [Online] Available at: <http://beepyoumba.com/BEEP/?p=28>
[Accessed 18 August 2012].
Recommended Reading
George J. & Jones G., 2007. Understanding and Managing Organisational Behaviour, 5th ed., Prentice Hall.
Slocum, J.W., 2010. Organisational Behaviour, 13th ed., South-Western College Pub
Robbins, J., 2009. Organisational Behaviour, 13th ed., Pearson International.
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Self Assessment
Match the following. 1.
1 Autocratic A Support
2 Custodial B Authority
3 Supportive C Teamwork
4 Collegial D Money
5 SOBC E cause-effect
1-A, 2-B, 3-C, 4-D, 5-E a.
1-B, 2-D, 3-A, 4-C, 5-E b.
1-D, 2-C, 3-A, 4-E, 5-B c.
1-D, 2-C, 3-E, 4-A, 5-B d.
To study organisational behaviour, the inter-disciplinary approach emphasises the importance 2.
of____________.
employee a.
authority b.
human-life c.
money d.
The Human Resources approach states that the management of an organisation should support ________ 3.
and________of employees.
training and development a.
training and decision making b.
compliance and development c.
training and authority d.
In systems approach the most important component is________________. 4.
decision-making a.
compliance b.
training c.
system d.
The contingency approach states that each situation should be dealt with_______________. 5.
authoritatively a.
uniquely b.
systematically c.
passively d.
___________ is the process of motivating members of the organisation to work together toward the organisations 6.
goals.
Controlling a.
Behaviour b.
Leading c.
Presentation d.
Organisational Behaviour
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Which of the following statements is false? 7.
The feld of organisational behaviour provides numerous valuable insights into these processes. a.
Managers can never use their knowledge from the feld of organisational behaviour to better understanding b.
of their own behaviours and feelings.
A manager has to control costs, inventory, and so on. c.
Behavioural processes and characteristics play an important role in carrying out this function. d.
Which of the following statements is false? 8.
Value premise represent our views of the desirability of certain goals and activities. a.
Value premises are variable beliefs we hold and are therefore under our control. b.
Goals are relatively concrete formulations of achievements the organisation is aiming for within set periods c.
of time, such as one to fve years.
Goal setting is a simple process, for top managements goals need to be merged with those of employees, d.
who bring their psychological, social, and economic needs with them to an organisation.
The __________ speaks for the organisation to outsiders.\ 9.
owner a.
employee b.
spokesperson c.
human resource manager d.
The managerial function of _________ is the process of determining the organisations desired future position 10.
and deciding how best to get there.
planning a.
execution b.
stress management c.
team work d.