Foundation of Organisational Behaviour

DEFINITION OF MANAGEMENT Management is commonly defined as "Getting work done through other people". This simple definition explains the significance of the role of people. The work will not be done unless "people" want to do the work and if the work is not done then there will be no organisation. Hence, the cooperation of the workers is crucial to the success or failure of the organisation. DEFINITION OF ORGANISATION According to Gary Johns, "Organisations are social inventions for accomplishing goals through group efforts". This definition covers wide variety-of groups such as businesses, schools, hospitals, fraternal groups, religious bodies, government agencies and so on. There are three significant aspects in the above definition, which require further analysis. They are as follows: Social Inventions: The word "social" as a derivative of society basically means gathering of people. It is the people that primarily make up an organisation. Accomplishing Goals: All organisations have reasons for their existence. These reasons are the goals towards which all organisational efforts are directed. While the primary goal .of any commercial organisation is to make money for its owners, this goal is inter-related with many other goals. Accordingly, any organisational goal must integrate in itself the personal goals of all individuals associated with the organisation. Group Effort: People, both as members of the society at large and as a part of an organisation interact with each other and are inter-dependent. Individuals in themselves have physical and intellectual limitations and these limitations can only be overcome by group efforts. MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR Organisational behaviour is concerned with people's thoughts, feelings, emotions and actions in setting up a work. Understanding an individual behaviour is in itself a challenge, but understanding group behaviour in an organisational environment is a monumental managerial task. As Nadler and Tushman put it, "Understanding one individual's behaviour is challenging in and of itself; understanding a group that is made up of different individuals and comprehending the many relationships among those individuals is even more complex. Ultimately, the organisation's work gets done through people, individually or collectively, on their, own or in collaboration with technology. Therefore, the management of organisational behaviour is central to the management taska task that involves the capacity to "understand" the behaviour patterns of individuals, groups and organisations, to ''predict'" what behavioural responses will be elicited by various managerial actions and finally to use this understanding and these predictions to achieve "control". Organisational behaviour can then be defined as: "The study of human behaviour in organisational settings, the interface between human behaviour and the organisational context, and the organisation itself." The above definition has three partsthe individual behaviour, the organisation and the (interface between the two. Each individual brings to an organisation a unique set of beliefs, values, attitudes and other personal characteristics and these characteristics of all individuals must interact with each other in order to create organisational settings. The organisational behaviour is specifically concerned with work-related behaviour, which takes place in organisations. In addition to understanding; the on-going behavioural processes involved, in 'their own jobs, managers must understand the basic human element of their work. Organisational behaviour offers three major ways of understanding this context; people as organisations, people as resources and people as people. Above all, organisations are people; and without people there would be no organisations. Thus, if managers are to understand the organisations in which they work, they must first understand the people who make up the organisations.

As resources, people are one of the organisation's most valuable assets. People create the organisation, guide and direct its course, and vitalise and revitalise it. People make the decisions, solve the problems, and answer the questions. As managers increasingly recognise the value of potential contributions by their employees, it will become more and more important for managers and employees to grasp the complexities of organisational behaviour. Finally, there is people as people - an argument derived from the simple notion of humanistic management. People spend a large part of their lives in; organisational settings, mostly as employees. They have a right to expect something in return beyond wages and benefits. They have a right to expect satisfaction and to learn new skills. An understanding of organisational behaviour can help the manager better appreciate the variety of individual needs and' expectations. Organisational behaviour is concerned with the characteristics and behaviours of employees in isolation; the characteristics and processes that are part of the organisation itself; 'and the characteristics and behaviours directly resulting from people with their individual needs and motivations working within the structure of the organisation. One cannot understand an individuals behaviour completely without learning something about that individual's organisation. Similarly, he cannot understand how the organisation operates without; studying the people who-make it up. Thus, the organisation influences and is influenced by individuals. ELEMENTS OF ORGANISATIONAL BEHAVIOUR The key elements in the organisational behaviour are people,, structure, technology and the environment in which the organisation operates. People: People make up the internal and social system of the organisation. They consist of individuals and groups. The groups may be big or small; formal or informal; official or unofficial. Groups are dynamic and they work in the organisation to achieve their objectives. Structure: Structure defines the formal relationships of the people in organisations. Different people in the organisation are performing different type of jobs and they need to be (elated in some structural way so that their work can be effectively co-ordinated. Technology: Technology such as machines and work processes provide the resources with which people work and affects the tasks that they perform. The technology used has a significant influence on working relationships. It allows people to do more and work better but it also restricts' people in various ways. Environment: All organisations operate within an external environment. It is the part of a larger system that contains many other elements such as government, family and other organisations. All of these mutually influence each other in a complex system that creates a context for a group of people. NATURE OF ORGANISATIONAL BEHAVIOUR Each individual brings to an organisation a unique set of personal characteristics, experiences from 1 other organisation, the environment surrounding the organisation and they also posses a personal background. In considering the people working in an organisation, organisational behaviour must look at the unique perspective that each individual brings to the work setting. But individuals do not work in isolation. They come in contact with other individuals and the organisation in a variety of ways. Points of contact include managers, co-workers, formal policies and procedures of the organisation, and various changes implemented by the organisation. Over time, the individual, too, changes, as a function of both the personal experiences and the organisation. The organisation is also affected by the presence and eventual absence of the individual. Clearly, the study of organisational behaviour must consider the ways in which the individual and the organisation interact. An organisation, characteristically, exists before a particular person joins it and continues to exist after he leaves it. Thus, the organisation itself represents a crucial third perspective from which to view organisational behaviour. NEED FOR STUDYING ORGANISATIONAL BEHAVIOUR

The rules of work are different from the rules of play. The uniqueness of rules and the environment of organisations forces managers to study organisational behaviour in order to learn about normal and abnormal ranges of behaviour. More specifically, organisational behaviour serves three purposes: What causes behaviour? Why particular antecedents cause behaviour? Which antecedents of behaviour can be controlled directly and which are beyond control? A more specific and formal course in organisational behaviour helps an individual to develop more refined and workable sets of assumption that is directly relevant to his work interactions. Organisational behaviour helps in predicting human behaviour in the organisational setting by drawing a clear distinction between individual behaviour and group behaviour. Organisational behaviour does not provide solutions to all complex and different behaviour puzzles of organisations. It is only the intelligent judgement of the manager in dealing with a specific issue that can try to solve the problem. Organisational behaviour only assists in making judgements that are derived from tenable assumptions; judgement that takes into account the important variables underlying the situation; judgement that are assigned due recognition to the complexity of individual or group behaviour; judgement that explicitly takes into account the managers own goals, motives, hangups, blind spots and weaknesses. IMPORTANCE OF ORGANISATIONAL BEHAVIOUR Organisational behaviour offers several ideas to management as to how human factor should be properly emphasised to achieve organisational objectives. Barnard has observed that an organisation is a conscious interaction of two or more people. This suggests that since an organisation is Ihe interaction of persons, they should be given adequate importance in managing the organisation. Organisational behaviour provides opportunity to management to analyse human behaviour and prescribe means for shaping it to a particular direction. Understanding Human Behaviour Organisational behaviour provides understanding the human behaviour in all directions in which the human beings interact. Thus, organisational behaviour can be understood at the individual level, interpersonal level, group level and inter-group level. Organisational behaviour helps to analyse 'why' and 'how' an individual behaves in a particular way. Human behaviour is a complex phenomenon and is affected by a large number of factors including the psychological, social and cultural implications. Organisational behaviour integrates these factors to provide* simplicity in understanding the human behaviour. Interpersonal Level: Human behaviour can be understood at the level of interpersonal interaction. Organisational behaviour provides means for understanding the interpersonal relationships in an organisation. Analysis of reciprocal relationships, role analysis and transactional analysis are some of the common methods, which provide such understanding. Group Level: Though people interpret anything at their individual level, they are often modified by group pressures, which then become a force in shaping human behaviour, Thus, individuals should be studied in groups also.. Research in group dynamics has contributed vitally to organisational behaviour and shows how a group behaves in its norms, cohesion, goals, procedures, communication pattern and leadership. These research results are advancing managerial knowledge of understanding group behaviour, which is very important for organisational morale and productivity. Inter-group Level: The organisation is made up of many groups that develop complex relationships to build their process and substance. Understanding the effect of group relationships is important for managers in today's organisation. Inter-group relationship may be in the form of co-operation or competition.

The co-operative relationships help the organisation in achieving its objectives. Organisational behaviour provides means to understand and achieve co-operative group relationships through interaction, rotation of members among groups, avoidance of win-lose situation and focussing on total group objectives.

Controlling and Directing Behaviour: After understanding the mechanism of human behaviour, managers are required to control and direct the behaviour so that it conforms to the standards required for achieving the organisational objectives. Thus, managers are required to control and direct the behaviour at all levels of individual interaction. Therefore, organisational behaviour helps managers in controlling and directing in different areas such as use of power and sanction, leadership, communication and building organisational climate favourable for better interaction. Use of Power and Sanction: The behaviours can be controlled and directed by the use of power and sanction, which are formally defined by the organisation. Power is referred to as the capacity of an individual to take certain action and may be utilised in many ways. Organisational behaviour explains how various means of power and sanction can ,be utilised so that both organisational and individual objectives are achieved simultaneously. Leadership: Organisational behaviour brings new insights and understanding to the practice and theory of leadership. It identifies various leadership styles available to a manager and analyses which style is more appropriate in a given situation. Thus, managers can adopt styles keeping in view the various dimensions of organisations, individuals and situations. Communication: Communication helps people to come in contact with each other. To achieve organisational objectives, the communication must be effective. The communication process and its work in inter-personal dynamics have been evaluated by organisational behaviour. Organisational Climate: Organisational climate refers to the total organisational situations affecting human behaviour. Organisational climate takes a system perspective that affect human behaviour. Besides improving the satisfactory working conditions and adequate compensation, organisational climate includes creation of an atmosphere of effective supervision; the opportunity for the realisation of personal goals, congenial relations with others at the work place and a sense of accomplishment. Organisational Adaptation: Organisations, as dynamic entities are characterised by pervasive changes. Organisations have to adapt themselves to the environmental changes by making suitable, internal arrangements such as convincing employees who normally have the tendency of resisting any changes.

LEVELS OF ANALYSIS Organisational behaviour can be viewed from different perspectives or levels of analysis. At one level, the organisation can be viewed as consisting of individuals working on tasks in the pursuit of the organisational goals. A second level of analysis focuses upon the interaction among organisational members as they work in' teams, groups and departments. Finally, organisational behaviour can be analysed from the perspective of the organisation as a whole. Organisation at the Individual Level: Organisational behaviour can be studied in the perspective of individual members of the organisation. This approach to organisational behaviour draws heavily on the discipline of psychology and explains why individuals behave and react the way they do to different organisational policies, practices and procedures. Within this perspective, psychologically based theories of learning, motivation, satisfaction and leadership are brought to bear upon the behaviour and performance of individual members of an organisation. Factors such as attitudes, beliefs, perceptions and personalities are taken into account and their impact upon individuals behaviour and performance on the job is studied. Organisation at the Group Level: People rarely work independently in organisations; they have to necessarily work in coordination to meet the organisational goals. This frequently results in people working together in teams, committees and groups. How do people work together in groups? What factors determine whether group will be cohesive and productive? What types of tasks could be assigned to groups? These are some of the questions that can be asked about the effective functioning of groups in organisations. An important component of organisational behaviour involves the application of knowledge and theories from social psychology to the study of groups in organisations. Organisation at the Organisational Level: Some organisational behaviour researchers take the organisation as a whole as their object of study. This j macro perspective on organisational behaviour draws heavily on theories and concepts from the discipline of 'sociology'. Researchers seek to understand the implications of the relationship between the organisation and its environment for the effectiveness of the organisation. Emphasis is placed upon understanding how organisational structure and design influences the effectiveness of

an organisation. Other factors such as the technology employed by the organisation, the size of the organisation and the organisation's age are also examined and their implications for effective organisational functioning are explored. These different perspectives on the study of organisational behaviour are not in conflict with one another. Instead they are complementary. A full and complete understanding of the nature of organisations and the determinants of their effectiveness requires a blending of knowledge derived from each perspective. FUNDAMENTAL CONCEPTS OF ORGANISATIONAL BEHAVIOUR Organisational behaviour starts with the following six fundamental concepts revolving around the nature of people and organisations: The nature of people: Individual differences A whole person Motivated behaviour Value of the person The nature of organisation: Social system Mutual interest Individual Differences: Individuals are different in their physical and mental traits. They are different not only in the physical appearance such as sex, age, height, weight, complexion and so on but also different in their psychological trait such as intelligence, attitude, motivation and perception. This belief that each person is different from all others is typically called the 'Law of Individual Differences'. Individual differences mean that the management has to treat them differently to get the best out of them. A Whole Person: Though the organisation may feel that they are employing only the individual's skill or intelligence, in fact, they employ the 'whole person'. This means that individual does not have only the skill and intelligence but he has a personal life, needs and desires as well. In other words, his personal life cannot be separated from his work life since people function as total human beings. When management practices organisational behaviour, it is not only trying to develop a better employee but it also wants to develop a 'better person' in terms of all round growth and development. The benefit will extend beyond the firm into the larger society in which each employee lives. Motivated behaviour: It is the urge of the individual to satisfy a particular need that motivates him to do an act. The motivation could be positive or negative. Motivation is essential for the proper functioning of organisations. The organisation can show to its employees how certain actions will increase their need fulfilment. Value of the Person: It is more an ethical philosophy. It stresses that people are to be treated with respect and dignity. Every job, however simple, entitles the people who do it to proper respect and recognition of their unique aspirations and abilities. Since organisational behaviour involves people, ethical philosophy is involved in one way or the other. The nature of an organisation can be understood with the help of tjie description of following two points: Social System: A system is a group of independent and interrelated elements comprising a unified whole. In context with an organisation, the individuals of a society are considered as a system organised by a characteristic pattern of relationships having a distinctive culture and values. It is also called social organisation or social structure. It can be further divided into following categories: Feudal system: This is a social system, which is developed in Europe in the 8th Century. A political and economic system based on the holding of. land and relation of lord to vassal and characterized by homage, legal and military service of tenants, and forfeiture. Patriarchate: This is social system, in which a male is considered to be the family head and title or surname is traced through his chain. In other words, power lies in his hands. Matriarchate: This is social system, in which a female is considered to be the family head and title or surname is traced through her chain. In other words, power lies in her hands. Meritocracy: This is a social system, in which power vests in the hands of the person with superior intellects. Class Structure: This is a social system of different classes with in a society.

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Segregation: This is a social system, which provides separate facilities for minority groups of a society. Mutual Interest: Organisational relationships are most likely to be strong if different groups can negotiate strategies. This can be defined as the interests that are common to both the parties and are related to the accomplishment of their respective goals. This space for sharing ideas builds trust. Individuals who have shared mutual interests are likely to make their organisation the strongest, because even though the views are different they have a shared concern for similar objectives. It is important for the individuals to think about their issues openly, and to incorporate the perspectives of their colleagues. This helps to build sustainable and harmonious activities that can operate in the mutual direct interests of the organisation.

Holistic Organisational Behaviour: When the above six concepts of organisational behaviour are considered together, they provide a holistic concept of the subject. Holistic organisational behaviour interprets people-organisation relationships in terms of the whole person, whole group, whole organisation and whole social system.