Unit- 1 Introduction of Organizational Behaviour

1.1 Organizational Behaviour

Organizational Behavior (OB) is the study of human behavior in

organizational settings, the interface between human behavior and the
organization, and the organization itself.
Organizational behavior is the study of both group and individual
performance and activity within an organization.
OB studies put the focus on motivation, leader behavior and power,
interpersonal communication, group structure and processes, learning,
attitude development and perception, change processes, conflict, work
design, and work stress.
Organizational Behavior is the study and application of knowledge about
how people, individuals, and groups act in organizations. It does this by
taking a system approach.
That is, it interprets people-organization relationships in terms of the
whole person, the whole group, the whole organization, and the whole
social system.
Its purpose is to build better relationships by achieving human
objectives, organizational objectives, and social objectives. OB
encompasses a wide range of topics, such as human behavior, change,
leadership, teams, etc.
Organizational behavior has a great impact on individuals and also in
organizations that cannot be ignored. In order to run the businesses
effectively and efficiently, the study of organizational behavior is very
essential.
According to L. M. Prasad, “Organisational behaviour can be defined
as the study and application of knowledge about human behaviour
related to other elements of an organisation such as structure,
technology and social systems.”

1.2 Nature
The nature of Organizational Behaviour is identified as follows:
1. A Separate Field of Study and Not a Discipline Only:
By definition, a discipline is an accepted science that is based on a
theoretical foundation. But, O.B. has a multi- interdisciplinary
orientation and is, thus, not based on a specific theoretical background.
Therefore, it is better reasonable to call O.B. a separate field of study
rather than a discipline only.
2. An Interdisciplinary Approach:
Organizational behaviour is essentially an interdisciplinary approach to
study human behaviour at work. It tries to integrate the relevant
knowledge drawn from related disciplines like psychology, sociology
and anthropology to make them applicable for studying and analysing
organizational behaviour.
3. An Applied Science:
The very nature of O.B. is applied. What O.B. basically does is the
application of various researches to solve the organizational problems
related to human behaviour. The basic line of difference between pure
science and O.B. is that while the former concentrates of fundamental
researches, the latter concentrates on applied researches. O.B. involves
both applied research and its application in organizational analysis.
Hence, O.B. can be called both science as well as art.
4. A Normative Science:
Organizational Behaviour is a normative science also. While the positive
science discusses only cause effect relationship, O.B. prescribes how the
findings of applied researches can be applied to socially accepted
organizational goals. Thus, O.B. deals with what is accepted by
individuals and society engaged in an organization. Yes, it is not that
O.B. is not normative at all. In fact, O.B. is normative as well that is well
underscored by the proliferation of management theories.
5. A Humanistic and Optimistic Approach:
Organizational Behaviour applies humanistic approach towards people
working in the organization. It deals with the thinking and feeling of
human beings. O.B. is based on the belief that people have an innate
desire to be independent, creative and productive. It also realizes that
people working in the organization can and will actualise these
potentials if they are given proper conditions and environment.
Environment affects performance or workers working in an
organization.
6 A Total System Approach:
The system approach is one that integrates all the variables, affecting
organizational functioning. The systems approach has been developed
by the behavioural scientists to analyse human behaviour in view of
his/her socio-psychological framework. Man’s socio- psychological
framework makes man a complex one and the systems approach tries to
study his/her complexity and find solution to it.

1.3 Scope of Organizational Behaviour

The scope of OB integrates 3 concepts respectively:
1. Individual Behavior
It is the study of individual’s personality, learning, attitudes, motivation,
and job satisfaction. In this study, we interact with others in order to
study about them and make our perception about them.
Example: The personal interview round is conducted to interact
with candidates to check their skills, apart from those mentioned in
the resume.

2. Inter-individual Behavior
It is the study conducted through communication between the employees
among themselves as well as their subordinates, understanding people’s
leadership qualities, group dynamics, group conflicts, power and
politics.
Example: A meeting to decide list of new board members.

3. Group Behavior
Group behavior studies the formation of organization, structure of
organization and effectiveness of organization. The group efforts made
towards the achievement of organization’s goal is group behavior. In
short, it is the way how a group behaves.
Example: Strike, rally etc

1.4 Models of Organizational Behaviour

It is necessary to consider the employees' feelings and wants to make
them feel wanted. Only then will there be positive energy and
productivity in the work environment. In addition, specific models
enhance organizational behaviour.
The models of organizational behaviour are given below.

1. Autocratic

This model is based on the power of authority. Thus, there is

dependence on the boss and obedience by the employees. In such
organizational behaviour dominance of the authority is
experienced. Here the performance level is moderate.

2. Custodial

Under this, there is a basis on economic resources with a managerial

orientation of money. In addition, there is a massive corporation in
the form of performance results.

3. Supportive

There is leadership with a managerial orientation of support in this

model. There are job performance and participation that the
employees are oriented towards. Status and recognition is the
employee need that is met. In such an organizational behaviour
performance level is optimum.

4. Collegial
Here, partnership with a managerial orientation of teamwork is
followed. Responsible behaviour and self-discipline are motivated by
the employees. The self-actualization needs of the employees are met.

1.5 Significance of Organizational Behavior

OB is the study and application of knowledge about predicting,

understanding, and controlling the behavior in the organizational setting.
It is of great importance for any organization in today’s scenario. The
vast changes in the organizational set up and the world economy, as well
as the growing concern about the stakeholders have increased the scope
of the study of OB.
Therefore, the vital role played by OB can be discussed as follows:
1. Attaining Organizational Effectiveness:
Refers to a process that acts as an indicator or a scorecard for an
organization’s performance. The analysis of performance can be done
from individual and organizational perspectives.
2. Sustaining Changes in Business Environment:
It refers to the need of an organization to accept the changes occurring in
the business environment. The dynamic external environment increases
the importance of OB as a field of study, because it affects the internal
environment as well, thus, forcing an organization to accept changes as
survival strategy.
3. Balancing Increase in Capitalism:
It refers to the economic system that is represented by private ownership
of capital and means of production. The features of capitalism make the
study of OB very important because of increasing monopolists and
capital-intensive industries.
4. Surviving Intense Competition:
An organization can face competition by adopting various policies, such
as capturing market share and developing human resource. The study of
OB helps the organization to develop the human resource by molding
their behavior for the benefits of organization.
5. Managing Global Influences:
Refers to controlling the effects of privatization and globalization on
organizations. Global influences make the workforce of an organization
more diverse in nature, thus makes the study of OB more important.
6. Fulfilling Human Needs:
It refers to managing and enhancing the skills of employees.
Employees also expect the organization to understand their needs and
provide them with right impetus to grow both financially and
professionally. Thus, knowledge of OB helps the management to
understand and fulfill these needs of employees.
7. Managing the Complexity in the Structure of Organizations:
It refers to controlling the complexity that may arise in the
organizational structure due to changing business environment. As an
organization grows, its structure becomes complex because its command
chain expands, the scope of authority becomes multifaceted, and the
responsibilities of employees keep changing.
8. Managing the Presence of Labor Unions:
It refers to monitoring and controlling the activities of labor unions.
These unions persuade the management of an organization to give
importance to human relations. Therefore, organizations lay emphasis on
the study of OB to take care of human aspects.

1.5 Emerging challenges in organizational behaviour

The changing scenario in the global, industrial and organizational setups

have led to some challenges in organizational behavoiur. Some of them
are:

1. Globalization:
No organization can work effectively in isolation. Globalization poses
numerous challenges in front of an organization. At the individual level,
an employee may require to work on foreign assignments or collaborate
with people from different cultures.
At the group level, problems may arise in decision-making procedures
and while working in teams that include people of different cultural
backgrounds. At the organizational level, problems may arise in case of
mergers or acquisitions due to vast cultural differences.

2. Management of Workforce Diversity:

It refers to the need of numerous conflict resolution techniques and
problem- solving approaches to deal with diverse workforce. It is
difficult to manage the employees belonging to different cultural
backgrounds, due to differences in their values, beliefs, attitudes, and
behaviors. A proper management of workforce diversity can have
numerous positive results, such as the introduction of fresh ideas and
talents.
3. Improvement in Quality and Productivity:
It refers to matching the desired levels of quality and productivity with
the ever-changing demands. A number of programs, such as process
reengineering and quality management are being implemented to bring
improvement in productivity.
4. Improvement in People Skills:
The change in business, political, and technological environment makes
it important to train and develop the employees according to new trends.
The technical and interpersonal skills of employees need constant
improvement.
5. Incorporation of Innovation:
It implies that it is necessary to incorporate change in rules, regulations.
It is easy to formulate the strategies for change in an organization, but
difficult to implement it due to the employee resistance. If the resistance
of employees is overcome then the positive changes can be brought in
the organization to enhance the productivity level.
6. Incorporation of Work-Life Balance:
The demanding work schedules and challenging jobs tend to upset the
personal and social life of employees at times. Work-life balance can be
achieved by implementing the concepts, such as work from home and
flexible work-timings.