An Introduction…

What are Organizations?• Organisations are groups of people who

work towards some purpose.• Organisation is the place where managers

practice the art of management• People work in organizations have

structure patterns of interactions, completing tasks in an organized way.

Who creates these Organizations?

• A group of people who believe • that they possess the necessary skills and

knowledge, to• form an organization to• produce goods and services.

Industrial Revolution

• Industrial Revolution brought about materialism, discipline, monotony, boredom etc

• Planted the seed for potential improvement.

• This period emphasized on human needs of employees.

• Marked the beginning of organizational behavior.

Simplistic Assumptions• People are basically lazy…• People are interested only in money…• Make people happy and they will be

productive…

Management Mind-set

Good working conditions – economic security – good compensation… what else ?

Hawthorne Studies

• At Hawthorne Works of Western Electric Company…

• Initial experiments: impact of illumination…• Next stage involved experimenting with

length of workday, rest breaks, method of payment etc…

Hawthorne Effect

Worker’s explanation for the choice in order of preference:

1. Small group2. Type of supervision3. Earnings4. Novelty of the situation5. Interest in the experiment6. Attention received

Behavior modelsRational and Emotional models

Rational Model perceives that individuals are highly rational entities, having computer like characteristics.

Emotional Model assumes that human beings are understood to be guided by emotions or unconscious responses.

Behaviouristic and Humanistic models

Behaviouristic model states that behavior is environmentally determined; it is more interested in observable behavior as contrasted with thoughts and feelings

Humanistic Model states that individual is more philosophical than scientific. Individuals express their irrational impulses through conscious reasoning

Economic and Self-Actualizing models

Economic Model is based on scientific management philosophy; it conceptualizes total economic orientation of the individuals.

Self-Actualizing Model states that an individual is motivated by the opportunity to grow & mature.

Theory X and Theory Y

Theory ‘’X’’ assumes the individuals to be lazy, uncreative and in need of constant prodding.

Theory ‘’Y’’ views the individuals as having tremendous potential, which effective management can channelise towards organizational goals

Challenges to Management

Downsizing

Diversity

Knowledge &

Information

Globalization

Total Quality

Management

Re-engineering

Environment

Management

The New Workplace• Traditional hierarchical organisation will vanish!

Several new forms will emerge… led by knowledge

• Technologists will replace manufacturing workers• Vertical division of labour will replace horizontal

division• Work will be redefined… more thinking - less

routine• From product to service…• From transaction to experience…

Organisational Behaviour

Organisation TheoryOrganisational

Behaviour

Organisation Development

Personnel / Human Resources

Theoretical

Applied

Macro Micro

Social psychology

Psychology

Anthropology

Sociology

Political science

Study ofOrganizational

Behaviour

Organizationsystem

LearningMotivationPerceptionTrainingLeadership effectivenessJob satisfactionIndividual decision makingPerformance appraisalAttitude measurementEmployee selectionWork designWork stress

Group dynamicsWork teamsCommunicationPowerConflictIntergroup behaviour

Formal organization theoryOrganizational technologyOrganizational changeOrganizational culture

ConflictIntraorganizational politicsPower

Organizational cultureOrganizational environment

Behavioural changeAttitude changeCommunicationGroup processesGroup decision making

Group

Comparative valuesComparative attitudesCross-cultural analysis

Individual

OB Model

PersonalityPerceptionLearning

Attitudes & AttributionMotivation

Team DynamicsLeadership

Power & PoliticsCommunication

Conflict

Organisational CultureHR policies & practices

Work StressOrganisational change &

development

IndividualBehaviour

GroupBehaviour

Organisation

OrganisationalEffectiveness

Theoretical Frameworks

• Cognitive Framework• Behaviorstic Framework• Social Learning Approach

Cognitive Framework

• Gives human being more “credit” and assumes that behavior is purposive and goal oriented

Behaviorstic Framework

• Deals with observable behavior and experimental contingencies of the behavior. (Classical: Stimuli – Response; Modern: increased emphasis to contingent consequences)

Social Learning Framework

• Emphasizes that the person, the environment and the behavior itself are in constant interaction with one another and reciprocally determine one another

Enhancing Organizational Effectiveness

• Role of Information Technology• Total Quality Management• Re-engineering• Benchmarking• Empowerment• Learning organizations

Meaning

• OB is nothing more than developing our understanding and development of people skill. A multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics.

• OB is Study of human behavior in organizations. There are two words-

1)Organization 2)Behaviour

• The study of Organizational Behaviour (OB) is very interesting and challenging too. It is related to individuals, group of people working together in teams.

• The study of organizational behaviour relates to the expected behaviour of an individual in the organization.

• No two individuals are likely to behave in the same manner in a particular work situation.

• It is the predictability of a manager about the expected behaviour of an individual.

Definitions• According to Luthans “OB is directly concerned with the understanding, predicting and

controlling of human behavior in organizations.” • According to LM Prasad The study and application of knowledge about human behaviour

related to other elements of an organization such as structure, technology and social systems

• Stephen P Robins Organizational behaviour as a systematic study of the actions and

attitudes that people exhibit within organizations.

Nature Of OB• A separate field of study and not a discipline only It has assumed the status of a distinct field of study. It is a part of general

management. It represents behavioral approach to management. • An inter-disciplinary approach The OB is heavily influenced by several other behavioral sciences and

social sciences like psychology, Sociology and anthropology. O.B. has psychological foundations. The concept like learning, perception, attitude, motivation etc is borrowed from psychology, sociology and anthropology.

• A Normative Science Organizational behaviour is a normative science. A normative science

prescribes how the various findings of researches can be applied to get organizational results, which are acceptable to the society. Thus, what is acceptable by the society or individuals engaged in an organization is a matter of values of the society and people concerned

• A Science and Art Organization behavior is both art and science. It is considered as art because it

contains knowledge about behavior of individuals. It is considered as science because it involves application of science.

• Humanistic and Optimistic Approach Organizational behaviour focuses the attention on people from humanistic point of

view. It is based on the belief that needs and motivation of people are of high' concern. Further, there is optimism about the innate potential of man to be independent, creative, predictive and capable of contributing positively to the objectives of the organization.

• Oriented towards Organizational Objectives Organizational behaviour is oriented towards organizational objectives. In fact,

organizational behaviour tries to integrate both individual and organizational objectives so that both are achieved simultaneously.

• A Total System Approach An individual's behaviour can be analyzed keeping in view his psychological

framework, interpersonal-orientation, group influence and social and cultural factors; Thus, individual's nature is quite complex and organizational behaviour by applying systems approach tries to find solutions for this complexity..

Characteristics Of OB• Large Size It employ Hundreds and thousands of employees. • Human Resources • Complexity It involves huge investment and complicated technology, their

management and operation is a complex affair.• Co-ordination• Pattern Behavior There is a system of working in all organization like hierarchical

levels, a chain of command, rules and procedures. • Discipline • Dynamic Organization behavior is dynamic rather than static. It essence is

reflected in change in behavior of individuals in organization

Contributing Disciplines to the OB Field

Organizational behavior is a behavioral science that takes contributions from various behavioral disciplines like----Psychology SociologySocial psychologyAnthropologyPolitical science

Psychology It is the science that tries to measure, explain and

change the behavior of humans and other animals.Early industrial or organizational psychologists were

concerned with problems of tiredness, boredom and other factors that affect performance.

But now, they are concerned with learning, perception, personality, training, leadership effectiveness, etc.

SociologyIt is the study of the social system in which the

individual lives.It studies people with respect to their colleagues.Sociologists make an important contribution to OB

through their study of group behavior in organizations

Social Psychology• It mixes the concepts of psychology and

sociology.• It focuses on influence of people on one another.Anthropology• It is the study of societies to learn about human

beings and their activities.• Anthropologists work on culture and

environments.• They help in understanding differences in

fundamental values, attitudes and behavior of people in different countries and different organizations.

Political Science• It studies behavior of individuals and groups

within a political environment.• It focuses on areas like conflict, intra-

organizational politics and power.

CHALLENGES AND OPPORTUNITIES FOR OB

1. Managing Workforce Diversity2. Improving Quality and Productivity3. Responding to Labour Shortage4. Improving Customer Service5. Improving People Skill6. Empowering People7. Coping with Temporariness8. Stimulating Innovation and Change9. Helping Employees Balance Work/Life Conflicts10.Improving Ethical Behaviour

FIVE MODELS OF ORGANISATIONAL BEHAVIOR

• Top management’s models are particularly important to identify, for the underlying model that exists within a firm’s chief executive officer tends extend throughout that firm. For this reason, models of organizational behavior are highly significant.

Classification models of OB: There are five models of OB • 1. Autocratic model • 2. Custodial model • 3. Supportive model • 4. Collegial model • 5. System model

Autocratic model • In this model we can find that this model relies on power. For

example, managers have the ability, authority to control their employees and the employee’s performance in this stage will be much lower than expected.

Short notes of this model: 1. Depends on power 2. Managerial orientation is authority 3. Employee orientation is obedience 4. Employee psychological result depends on boss 5. Employee needs met is subsistence 6. Performance result is minimum Example: Defense team, because here officer hold power and

authority to obey them and thus soldiers are obedient to execute officer’s order.

Custodial model • This model usually depends on economic resources (money). For instance,

managers can simulate their employees by offering them facilities, and benefits, but in this model the employee’s won’t work as a team (Less sharing with others) because everyone will depend on his self to get more benefits than the others.

Short notes of this model: 1. Depends on economical resource 2. Managerial orientation is money 3. Employee orientation is security and benefit 4. Employee psychological result depends on organization 5. Employee needs met is security 6. Performance result is passive cooperation Example: Garments factory, because here it is based on economical

resource. Here labors execute their job for security and benefit, again here if an organization do well then employee get better benefit.

Supportive model

• This model relies on leadership. For example, managers support their employees by encouraging, and supporting them to perform a better job, get along with each other and as well as developing their skills. The Performance results will be awakened drives.

Short notes of this model: 1. Depends on leadership 2. Managerial orientation is support 3. Employee orientation is job and performance 4. Employee psychological result is participation 5. Employee needs met is status and recognition 6. Performance result

is awakened drives

Example: Software firm, because here leaders support there employee to perform their tasks or their project.

Collegial model

• This model means that employees depend on each other cooperatively and work as a team to do the task. Everyone will be having a normal enthusiasm self-discipline, and responsible behavior towards their tasks.

Short notes of this model: 1. Depends on partnership 2. Managerial orientation is teamwork 3. Employee orientation is responsible behavior 4. Employee psychological result is self discipline 5. Employee needs met is self actualization 6. Performance result is moderate enthusiasm

Example: Social organization such as willingly blood donation organization BADHON, because here every one work as teamwork and each member takes responsibilities for organizational goal. Each member works here only for self actualization.

System model

• This model is based on trust, self-motivation, and the performance results will be more than expected, because employees will be committed to do their tasks as expected, and as well as organizational goals.

• After we explained the models in brief we would like to inform you that the world nowadays requires from us necessary steps before we decide the best model to have for an each organization.

• One of the most important things to consider is that managers and leaders should clearly understand the nature of their organizations before making any decision.

• Also, they have to consider and look at the changing in the environment and of course the employee’s needs so that they can have the best model to use to get a better result.