BE – V SEMESTER

Sub: Organization Behavior

Course Code: 21ISA59
UNIT 1: INTRODUCTION TO ORGANIZATION BEHAVIOR (6 Hrs)
• Introduction to organization behavior (OB): Management function,
Importance of management, key responsibilities of managers,
organization system, Organization plans, structure & hierarchy,
management control, decision making in organization, Organization
behavior models & theories. Individual Behavior: Introduction,
Personality: introduction and types/applications, Learning: learning
theories: reinforcement, social learning, Motivation: introduction and
employee drives for motivation, Perception: introduction and perceptual
errors
• Individual behaviour & processes
• Personality
• Learning
• Motivation
• Perception
Subject Faculty Name: Dr. Harish B S
 Course (SM) Objectives:

• Understand and learn to apply concepts of organization behavior

(OB), management function, role & responsibility of management in
creating a positive work environment.
• Learn and know how to apply the knowledge of individual
employee, emotions and team behavior, their attitude, responses
to various situation to foster a positive work environment
• Understand and learn the team its behavior and dynamics, role of
leadership in shaping, managing organizational culture and
organization performance.
• Know how organization culture, its components, characteristics can
promote a positive and inclusive organizational culture.
• Learn the importance of communication in organization and
management of people in organizations with various behavioral
tools.
 Text Books
• Management and Behavioral processes – B. Janakiram and
Vijay N Rao – Excel Books, 2009
• Organizational Behavior - Stephen P Robbins, Timothy A.
Judge, Seema Sanghi Pearson Education, 12th Edition, PHI,
2009.
• Organizational Behavior - V.S. P. Rao, Excel Books, 2009.
 Let get started with understanding the
basics / simple conceptual clarity.

What’s your view on management?

What’s your view on organization?
What’s your view on organization behavior?
 Organization & Organizational Behaviour
 An organization is a systematic arrangement of people and other
resources brought together to accomplish some specific purpose
expressed in terms of goals.
 Every organization is made up of people
with different kinds who are formed into
groups to combine their efforts to achieve
the organizational goals.

Organizational behaviour:
is a study which involves examining and analyzing the
human behaviour in an organization.
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 Management
 Management is the force that unifies human as well as
non human resources in the service of organizational
goal.
 It is a process of getting results with & through people.
“Getting things done through others”

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Definition of Management
• Management is the art of getting things done
through & with the people.
- Koontz

“Management is the art of knowing what you

want to do and then seeing that it is done in the
best and cheapest way”
-F.W Taylor

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 Importance of Management
Guide organization towards goal accomplishment
Optimum use of resources
Organizing the people, resource, process
To achieve productivity
To achieve efficiency and effectiveness
Sound industrial relation

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 Functions of Management
Planning Organizing

Staffing Leading /Directing

Controlling

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 PLANNING
 Planning is a process of making decisions about future
 Planning is the process of setting goals, and charting the
best way of action for achieving the goals. This function
also includes, considering the various steps to be taken to
encourage the necessary levels of change and innovation.
Planning is the management function that involves:
 Setting goals
 Formulating vision, missions
 Making plans
 Charting the best way of action
 Adopt changes
 ORGANIZING
 Organizing is concerned with bringing together ,
arrangement and developing productive relationship of
organizations resource(people, materials, technology,
finance) in order to achieve organizational objectives.
 Developing the organization structure.
 Organizing is the process of allocating and arranging
work, authority and resources, to the members of the
organization so that they can successfully execute the
plans.
 STAFFING
 Staffing is the process of filling the positions in the
organization and keeping them filled.
 Staffing is the process of recruiting and selecting
the right person for the right job at the right time
in the right place.
 Staffing is a activity where people are recruited,
selected, trained, developed, motivated and
compensated for managing various positions

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 LEADING/DIRECTING
 Leading is the management function that involves influencing
others to engage in the work behaviours necessary to reach
organizational goals.
 It includes communicating with others, providing direction
and motivating people.
 Leading involves directing, influencing and motivating
employees to perform essential tasks.
 This function involves display of leadership qualities,
different leadership styles, different influencing powers, with
excellent abilities of communication and motivation.
 CONTROLLING
 Controlling is the management function aimed at regulating
organizational activities so that actual performance meets the
expected objectives and standards of company.
 It helps in keeping the organizational activities on the right
path and aligned with plans and goals
 Controlling is the process of devising various checks to
ensure that planned performance is actually achieved.
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Managerial Roles / Responsibilities
(Mintzbergs Managerial roles
developed by Henry Mintzberg)
Interpersonal Informational Decisional
Roles Roles Roles

Figure head Monitor Entrepreneur

Leader Disturbance
Disseminator
handler

Liaison Resource
Spokesman
Allocator

Negotiator
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 Roles of manager
A: Inter-personal Role
1. Figurehead: Represents the organization in formal matters and
on social occasions. Attending the flag hosting ceremony, receiving
visitors or taking visitors for dinner etc.

2. Leader: In the role of a leader, the manager motivates, encourages,

and builds enthusiasm among the employees. Training subordinates
to work under pressure, forms part of the responsibilities of a manager.

3. Liaison: Developing external link with outside the organization.

Serves as a link between people, groups or organization.
Eg:The negotiation of prices with the suppliers regarding raw materials

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 Roles of manager
Informational role:
1. Monitor: receiving and collecting information, see
through that every one gets the information and
understands it in the same way.

2. Disseminator: Transmits information received from

management to employees of the organization. Acts as
communicator.

3. Spokesperson: Transmits information to the

people who are external to the organization, i.e.,
government, media etc.
Eg: A manager addresses a press conference announcing a
new product launch or other major deal.
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 Roles of manager
Decisional Role:

1. Entrepreneur: Act as an initiator and designer and encourage

changes and innovation, identify new ideas, delegate idea and
responsibility to others.

2. Disturbance handler: Take corrective action during

disputes or crises; resolves conflicts among subordinates; adapt to
environmental crisis.

3.Resource allocator: Decides distribution of resources among

various individuals and groups in the organization.

4.Negotiator: Negotiates with subordinates, groups or

organizations- both internal and external. Represents department
during negotiation of union contracts, sales, purchases, budgets;
represent departmental interests
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Organization System
 An organization system represents the way in which
organizations function.
 Organizational systems refer to the structure of a company.
This includes the definition of all business divisions and
sectors, the communication flow, and reporting hierarchy.
 There are many benefits to having a well-defined
organizational structure, including improved efficiency,
productivity and decision-making.

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Structure and Hierarchy
An organizational structure is a system that outlines how
certain activities are directed in order to achieve the
goals of an organization.
Types of Organization and their Structure
 Line Organization.
 Line and Staff Organization.
 Functional Organization.
 Project Organization.
 Matrix Organization.

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Organization Plan:
 Organizational planning refers to the process of
creating a plan for a company or organization that
outlines its goals and objectives, as well as the
strategies and actions necessary to achieve them.
 Three major types of plans can help managers achieve
their organization's goals: strategic, tactical, and
operational.
 Operational plans lead to the achievement of
tactical plans, which in turn lead to the
attainment of strategic plans.

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Management Control:
 Control is a function of management that helps to
check errors and take corrective actions. This is done
to minimize deviation from standards and ensure that
the stated goals of the organization are achieved in a
desired manner.

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Decision Making in organization
 Decision making is defined as the selection of best
course of action from among the alternatives.

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Organization behavior models & theories

Notable organizational behavior models & theories are:

 Frederick Taylor's scientific management,
 McGregor's Theory X and Theory Y
 Human Relations approach by Elton Mayo.
 According to business theories, there are three levels
of organizational behavior: individual level, group
level, and organizational/systems level.

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Frederick Taylor's scientific management
(Principles)
 Time & motion study to execute the work.
 Science, not thumb of rule.
 Standardization of tools and equipment.
 Scientific selection, placement and training.
 Development of functional foremanship.

McGregor's Theory X and Theory Y

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Human Relations approach by Elton Mayo
 In this approach, the informal interaction between the
workers and employers relies on psychological and
moral aspects.

 (i) Higher employee morale.

 (ii) Cooperation of workforce.
 (iii) Increased productivity and production.
 (v) Employee loyalty towards organization.

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Individual Behavior: Introduction
 A process by which individuals organize and
interpret their sensory impressions in order to
give meaning to their environment.

It is an observable and measurable activity of human

being in a specific situation:
 Individual behaviour exhibited as an individual
 Individual behaviour exhibited as a team/group
member.
 Individual behaviour exhibited as a representative of
an large organization / system.

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Personality: introduction and determinants
What is personality?
 The sum total of ways in which an individual reacts and interacts
with others.

Personality Determinants
 Heredity
 Environment
 Situation

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Personality types and application:
(The Big Five Model)
 Extraversion  Emotional Stability
 Sociable, talkative, and  Calm, enthusiastic, and
assertive secure or tense,
nervous, and insecure
 Agreeableness
 Good-natured,
 Openness to
cooperative, and Experience
trusting  Imaginative,
artistically sensitive,
 Conscientiousness
and intellectual
 Responsible,
dependable, persistent,
and achievement
oriented
Learning: learning theories: reinforcement, social learning

 Positive Reinforcement:
 people get desired outcomes when they perform
needed work behaviors.
 Positive reinforces :pay raises, promotions.
 Negative Reinforcement: manager eliminates
undesired outcomes once the desired behavior occurs.
 Worker performs to avoid an undesired outcome
(Work harder or you are fired).
In both types of reinforcement, managersmust be
careful to link the right behaviors by workers to what the
organization needs.

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Social Learning
 Social learning theory suggests that social behavior is
learned by observing and imitating the behavior of
others. - Psychologist Albert Bandura.
 The social learning theory has four mediational
processes that help determine whether a new behavior
is acquired:
1. Attention: The degree to which we notice the
behavior.
2. Retention: How well we remember the behavior.
3. Reproduction: The ability to perform the behavior
4. Motivation: The will to emulate the behavior.

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Motivation: introduction and employee drives for motivation

 According to Stephen P. Robbins “motivation is the

willingness to exert high levels of efforts toward
organizational goals, conditioned by the effort ability
to satisfy some individual need”.
The drives for motivation:
 The Desire to Acquire.
 The Desire to Bond.
 The Desire to Defend.
 The Desire to Understand.

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 Many companies offer stock option plan to all its employees-
employees can buy the company’s stock @ fixed price in the
future, if market value is higher then the price of their option
they gain
 So they should work & get motivated to perform & help the
firm to be the best
1. Performance contingent rewards: directly links rewards &
performance in workplace
2. Content theories of motivation: Help us to understand
human & help people with diff needs (Maslow's theory)

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3. Process theories of motivation: how people give
meaning to reward & make decision on various work
related work behavior (choice to work hard/ not based on
their individual preferences)
4. Reinforcement theory of motivation: environment as
major cause of rewards that influences the human
behavior (behavior- pleasant outcomes- repeated,
behavior- unpleasant outcomes- not likely to be repeated )

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 SA

Esteem (respect &

recognition)

Social (status in the

society)

Safety (job security)

Physiological (basic needs)

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 Job
Job satisfaction/
dissatisfaction/di
satisfiers
ssatisfiers

Influenced by Influenced by
hygiene factors motivator factors
1. Working conditions 1. Achievement
2. Coworker relations 2. Recognition
3. Policies & rules 3. Responsibility
4. Supervisor quality 4. Work itself
5. Base wage/ salary 5. Advancement
6. Personal growth

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Perception: introduction and perceptual errors

 Perception is the process by which individuals

organize & interpret their sensory impression in
order to give meaning to their environment
 The process by which people select, organize,
interpret, and respond to information from the world
around them.

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Perceptual Errors
 Selective Perception
 People selectively interpret what they see based on their
interests, background, experience, and attitudes
 Halo Effect
 Drawing a general impression about an individual based
on a single characteristic
 Contrast Effects
 A person’s evaluation is affected by comparisons with
other individuals recently encountered
Perceptual Errors
 Projection
 Attributing one’s own characteristics to other people
 Stereotyping
 Judging someone on the basis of your perception of the
group to which that person belongs
Practice Questions: Unit 1
1. State the meaning of organization behavior (OB).
2. Define Management and highlight the major functions.
3. Discuss the importance of management.
4. Illustrate the key roles / responsibilities of managers.
5. Appraise the types of organizational structure with a diagram.
6. Describe decision making in organization.
7. Discuss any two organization behavior models & theories
8. State the meaning of Personality and list the determinants of
personality.
9. Summarize the types of personality.
10. Why social learning is important for managers?
11. Elaborate the drivers of motivation
12. Summarize the perceptual errors.
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Thank You

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