Organization Behavior

 Human Behavior at work

Definition
 Organization behavior is the study and application of
knowledge about how people-as individuals and as
groups-act within organizations. It strives to identify
ways in which people can act more effectively.
Organizational behavior is a scientific discipline in
which large number of research studies and
conceptual developments are constantly adding to its
knowledge base.
 Def., scope, importance, concepts,
models- autocratic, collegial, custodial,
supportive.
Goals
 Organizational behavior shares four types
of goals:
 To describe: It says how people behave under a
variety of conditions. This goal allows managers
to communicate about human behavior at work
using common language.
 Understanding: To understand why people
behave ad they do.Managers are inquisitive to
learn to probe for underlying behavior.
Goals
 Predicting: To assume future employee behavior. By
knowing employees behavior manager can take
preventive measures.

 Control: The final goal is to control and develop

some human activity at work. Since managers are
responsible for performance outcomes they are
interested to make an impact on employee behavior.
Managers need to be able to improve results trough
their and their employee’s actions.
Forces

 A complex set of factors the nature of

organizations today. A wide array and
trends in these forces can be classified
into four areas:
 People
 Structure
 Technology
 Environment
People
 People make up the internal social system of
an organization. That system consists of
individuals and groups, and large groups as
well small groups. There are informal groups
and more official, formal and dynamic ones.
People are the living, thinking, feeling beings
who work in the organizations to achieve their
objectives.
Structure
 Structure defines the formal relationship and
use of people in organizations. Different jobs
are required to accomplish all of an
organization’s activities. There are managers
and employees, accountants and assemblers.
These people have to be related in some
structural way so that their work can be
effectively coordinated.
Technology
 It provides the resources with which
people work and affects the task that they
perform. The technology used has a
significant influence on working
relationships. The great benefit of
technology is that it allows people to do
ore and better work.
Environment
 All organizations operate within an internal
and external environment. It is a part of a
larger system that contains many other
elements such as government, the family
and other organizations. Numerous
changes in the. Citizens expect
organizations to be socially responsible.
Fundamental Concepts
 OB starts with a set of principles revolving around
the nature of employees and organizations. These
ideas are as follows:
 The Nature of people
 The Nature of organizations
Nature of people
 With regard to people there are six basic concepts.
They are:
 Individual Differences: Each person in this world is
individually different. Individual differences mean
that organizations can motivate employees best by
treating them differently. The belief that each person
is different from all others is typically called as Law
of individual difference.
Perceptions
 People look at the world and see things
differently. Perception is the unique way in
which a person see, organize and
interprets. Managers must learn to expect
perceptual differences among their
employees, accept people as emotional
beings and manage them in individual
ways.
A whole person
 Organizations actually employ whole
person rather than certain total human
characteristics. People functions as
beings. Organizations try to develop a
better employ, but it also wants to develop
a better person in terms of , growth and
fulfillment.
Motivated Behavior
 Normal behavior has certain causes these may
relate to a persons needs and consequences
that result from acts.In the case of needs people
are motivated not by what we think , they ought
to have put by what they themselves want.To an
outsider a person’s needs may be unrealistic but
hey are still controlling. It leaves management
with two basic ways to motivate people. It can
show them how certain actions will increase their
need fulfillement.
Desire for Involvement.

 People wish to feel good about

themselves, this desire is reflected in their
drive for self efficacy, or the belief one has
the necessary capabilities to perform a
task. Many employees today are actively
contributing their talent and ideas to
organization's success.
Value of the person
 People deserve to be treated differently
from other factors of production because
they are of a higher order in the universe.
They want to be treated with caring
respect and dignity.
Nature of Organisation

 The three key concepts are

 social systems
 mutual interest
 employees ethics
Social Systems
 Organisations are social systems the activities
are governed by social laws as well as
psychological laws. People have psychological
needs social roles and status. Their behavior is
influenced by their group. Two types of social
systems are Formal Social System and
Informal Social System. The idea of a social
system provides a framework for analyzing
organisation behavior issues.
Mutual Interest
 Organisations need people and vice a versa.
Organisations have a human purpose. They are
formed and maintained on the basis of some
mutuality of interest among their participants.
Managers need employees to help them reach
organisational objectives and vice a
versa.Mutual interest provides super ordinate
goals. Which can be only through the integrated
efforts of individuals and their employers.
Ethics
 In order to attract and retain valuable employees
ethical treatment is necessary. Companies have
established codes of ethics ,publicized
statements of ethical values, rewarded
employees for ethical behavior and setup
internal procedures to handle misconduct. When
organization's goals and actions are ethical
mutuality creates a triple reward system in
individual, organizational and social objectives
are all met.
Basic Approaches
 Four basic approaches are:
1. The human resources approache
2. Contingency
3. Result oriented
4. System approach
Human Resources Approach
 It is developmental.

 Concerned with growth of people toward higher

levels of competency, creativity and fulfillment.

 It is also called Supportive Approach.

A Contigency Approach
 It means that different situations require different behavioral
practices for greatest effectiveness.
 The point overlooked here was when to use a specific
approach.
 It encourages analysis of each situation prior to action while at
the same time discouraging habitual practice based on
universal assumptions about people.
 It is more interdisciplinary, more system-oriented and more
research-oriented.
 Helps managers use all the current knowledge about people in
organizations.
Result Oriented Approach
 A dominant goal for many is Productivity. It is the ratio
which measure units of output with the units of input. The
idea of productivity doesn’t not imply that one should
produce more output; rather it is a measure of how
efficiently one produces whatever output is desired. It
means that less is consumed to produce each unit of
output. Human and social inputs and outputs are also
important eg: better organizational behavior can improve
job satisfaction, a human output or result occurs. OB
decisions typically involve human, social or economic
issues and so a number of result oriented outcomes.
A Systems Approach
 The fundamental elements of the systems approach include
 1: There are many variables within a system.
 2: The parts of a system are interdependent.
 3: There are many sub systems contained within larger
systems.
 4: Systems generally require inputs, engage in some process
and produce outputs.
 5: The input –process-output-mechanism is cyclical and self
sustaining.
 6: Systems produce both positive and negative results.
 7:Systems both intended and unintended consequences.
 8: The consequences of systems maybe short term ,long term
or both.
A Systems Approach
 The systems approach compels manager to take a
holistic view of the subject. Holistic OB interprets
people- organizational relationships in terms if the
whole person, whole group ,whole organization and
whole social system. Issues are analyzed in terms of
the total situation affecting them rather than in terms
of an isolated event.
 A cost benefit analysis is needed to determine
whether potential actions will have a net positive or
net negative effect.
Characteristics of OB Field
 1: Problems and questions are typically formulated within
independent variable-dependent variable framework. The
models attempt for cause and effect.
 2: The field is oriented towards change as desirable outcome
for organizations and persons within organizations.
 3: The field has a distinctly humanistic tone, reflected in the
concern for self development ,personal growth and self
actualization.
 4: The field is becoming increasingly performance oriented.
 5: the field is greatly influenced by norms of skepticism,
caution , replication, and public exposure of knowledge based
on facts which means that it follows the scientific method.
Importance of OB
 1: OB provides useful set of tools at many levels of
analysis.
 2: It is valuable for examining the dynamics of
relationship.
 3: It shows potential for aiding managers in their
search for greatest effectiveness.
 4: It enhances people’s awareness and effectiveness.
 5: It improves ability in handling conflict and
managing .
Challenges and Opportunities for OB
 1: It helps in improving quality and productivity by including
employees and by increasing their active participation in
planning and implementing changes.
 2: It offers specific insights to improve a manager’s people skills
that they can use on the job. Eg : Effective Listener, proper ways
of giving performance feedback.
 3: It recognizes differences and helps managers to see the value
of workforce diversity.
 4: It provides frameworks for understanding differences between
national culture.
 5: Empowerment is a challenge for OB.
 6: To stimulate employee creativity and tolerance for change.
 7:OB can help managers to learn to cope in a world of
temporariness and declining employee loyalty.
Different Models of OB
 Custodial Model
1: It leads to employees dependency on the organization rather on
the Boss.
2: Managerial orientation is towards money to pay wages and
benefits.
3: Satisfaction of security needs is motivating factor for work.
4:Employees working in this approach become psychologically
pre-occupied with their economic rewards and benefits.
Drawbacks:
1: Most employees do not utilize their full capacity or do not
motivate to increase their capacity.
Advantages:
1: It leads to security and satisfaction of workers.
Different Models of OB
The Autocratic model: In this model disobedient
employees will be penalized. 2:This model depends on power.
 3: Managerial orientation is formal.
 4: Management believes that it knows what is best , it also
assumes that employees need to directed, persuaded and
pushed into performance.
 Drawback:
 1: High human costs
 2: Moderate results
 3: Employees feel unsecured.
 4: Negative emotions in their families.
Different Models of OB
 Supportive Model
 1: It depends on Leadership.
 2: It is assumed that workers are not passive and
resistant to organizational needs by nature, but they
are made so by an inadequately supportive climate at
work.
 3: Management provides a climate to grow and
accomplish employees capabilities.
 4: It leads to employees feeling of participation and
task involvement in the organization.
Different Models of OB
 Collegial Model
 1: It is an extension of the supportive model.
 2: The term ‘Collegial’ relates to a body of persons having a
common purpose.
 3: It depends on management’s building a feeling of
partnership with employees.
 4: Managers are seen as joint contributors rather than as bosses.
 Collegial model tends to be more useful with unprogrammed
work and intellectual environment.
 Managerial orientation is towards the teamwork sense of
responsibilities is created among employees.