UNIT - 2

Introduction & Foundations of

Organizational Behaviour

Why to understand organizational

Behaviour?
To understand yourself
To understand others
To understand importance of team spirit & cooperation at workplace
Etc.
So, in order to be effective organizations need
to develop interpersonal skills of employees

What is organizational Behaviour?

OB is a field of study, that investigates the impact
that individuals, groups and structure have on
behaviour within an organization.
Study of OB focuses on how to improve
productivity, reduce absenteeism and turnover,
and increase employee citizenship and job
satisfaction.
OB involves study of process how people in
social systems function with each other to get
work done.

View of OB

OB is a way of thinking
OB is an interdisciplinary field
OB holds distinctly humanistic approach
OB is performance oriented
OB uses scientific method
OB focuses on application and
implementation of various strategies and
policies.

Levels of Analysis
OB studies human behaviour at 3 levels & its
impact on performance of organization.
Individual level:It includes study of individual aspects like
learning, perception, creativity, motivation,
personality, task performance, level of
cooperation, ethics and cognition etc.
Group level:It involves the study of group dynamics, intra and
inter group conflict and cohesion, leadership,
interpersonal communication, and roles.

Levels of Analysis
Organizational level:It involves study of the topics such as
organizational culture, structure, interorganizational cooperation and conflict,
management of change, technology etc.

OB studies behavioral problems at

various levels
According to OB, each and every problem
related to human behaviour should be studied
at various levels to have a clear understanding
of the causes and to find out solutions for the
same.
Eg.- Absenteeism issue can have different
dimensions at different levels.

Historical evolution of OB
1. Early Theorists:a) Adam SmithHe contributed the concept of division of
labour in 1776 from which the concept of
work specialization has been evolved in early
19th century.

Historical evolution of OB
b) Charles BabbageHe added list of following advantages to the
concept of division of labour:1. It reduces the time needed to learn the job
2. It reduces wastage of material during the
learning process.
3. It increases skill and efficiency of employees.
4. It facilitates selection of right man for the
right job.

Historical evolution of OB
2. The Classical Era:It covers the period between 1900 to mid 1930s
The main contributors during this era were:a) F. W. Taylor
Midvale Steel Co. - an ordinary workman gradually progressed
Focused on solidering problem i.e. workers working slower than
capacity for fear of more workload, safegaurding other workers
capacity standards, because of being unsure of rewards etc.
- His main emphasis was on finding one best way of doing each job.
- He stressed on the concept of right man for the right job and
employee trainings
- He favored differential wage policy to motivate the workers
- He has contributed various scientific principles of management.
- He insisted the use of time study and motion study.

Historical evolution of OB
a) F. W. Taylor-cont.
- He showed dramatic results with significant
increase in productivity.
- He provided the basic foundation for
inventions of mass production techniques
with the help of his step by step approach at
shop floor.

Historical evolution of OB
b) Henri Fayol:He contributed 14 principles of mgt. in his book named
General and Industrial mgt. in1916, which are as given
below:1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of Command (Single Boss)
5. Unity of Direction (Single Plan)
6. Subordination of individual interest in general interest

Historical evolution of OB
b) Henri Fayol:-cont.
7. Remuneration of personnel should be fair
8. Centralization and decentralization
9. Scalar chain (line of authority) with gang plank
bridge.
10. Proper order
11. Equity
12. Stability of tenure for personnel
13. Initiative
14. Esprit de corps (team spirit)

Historical evolution of OB
c) Max Weber:-He developed theory based on authority
relations.
- He came up with the concept of Bureaucartic
theory in mgt. of organizations.
- It is characterized by lot of rules and regulations,
Strict adherence, fully defined jobs, employees
are protected from arbitrary dismissal.
- It is sort mechanical approach towards a
business.

Historical evolution of OB
3. The Human Relations Movement
a) Mary Parker Follet :- She gave importance to group efforts and
employee motivation.
-She said mgrs and workers need to look at each
other as partners.
- She suggested a solution should be one acceptable
to all for reducing resistance and boosting
performance
- Also believed that power should be given to all and
used for getting things done co-operatively

Historical evolution of OB
B) Chester Barnard:- He gave more importance to organizational
cooperation (from stakeholders) and team
spirit for organizational success.
- He believed in stake holders motivation and
development of human skills in employees for
organizational effectiveness and success.

Historical evolution of OB
c) Elton Mayo:- Individual workers cannot be treated in isolation but
must be seen as members of a group.
- Monetary incentives and good working conditions are
less important to the individual than the need to
belong to a group.
- Informal or unofficial groups formed at work have a
strong influence on the behaviour those workers in a
group .
- Managers must be aware of these social needs and
cater for them to ensure that employees collaborate
with the official organization rather than work against
it.

Historical evolution of OB
d) Dale Carnegie:- He Wrote a book named How to Win Friends
and Influence People.
-According to him the way to success is through
winning cooperation of people
For this he advised:1. To make others feel important
2. Seek to a good impression
3. Win People with way of your thinking
4. Change people by praising their good traits

Historical evolution of OB
e) Abraham Maslow:- He proposed need hierarchy theory of
motivation
- He stated Physiological, safety, social, esteem
and self actualization needs
According to him unsatisfied needs keep on
motivating individuals.

Historical evolution of OB
f) Douglas McGregor:- He contributed Theory X and Theory Y about
human nature
According to him there are 2 types of mgrs
holding different views about human nature
Mgrs who believe in Theory X
Mgrs who Believe in Theory Y

Historical evolution of OB
4.Behavioural Science Theories:These theorists engaged in objective research of
human behaviour in organizations.
a) B. F. Skinner (People behave as desired only when
rewarded and refrain from when punished)
b) David McClelland- ( Behaviour can be modified
through trainings and motivation)
c) Fred Fielder- (Focus on situational leadership style)
d) Fredrick Herzberg ( 2 factor theory- Hygiene and
Motivation factors)