Ob Chapter 01

ORGANISATION BEHAVIOUR
Organisation Behaviour is concerned with

the study of what people do in an
organisation and how that behaviour
affects the performance of the
organisation.
Definition
Organizational behaviour, is a
study and application of knowledge
about human behaviour as
individuals and in groups in orgns
strives to identify ways in which
people can act more effectively.
The understanding, prediction and
management of human behaviour in
organisations.
Is an applied science- best practices in
one orgn can be communicated to others
3
What is Organizational Behavior?
Insert Figure 1.1 here
4
Why Study Organizational Behavior
Understand
organizational
events
Organizational
Behavior
Research
Influence Predict
organizational organizational
events events
6
Why Do We Study OB?
To learnabout yourself and how to deal with others

You are part of an organization now, and will continue to be a part of various
organizations
Organizations are increasingly expecting individuals to be able to work in
teams, at least some of the time
Some of you may want to be managers or Entrepreneurs
What Is an Organization?
A consciously coordinated social unit, composed of a group of

people, which functions on a relatively continuous basis
to achieve a common goal or set of goals.
The goals of organizational behaviour.
The four goals of Organizational behavior are:
To describe systematically how people behave

under variety of conditions
To understand why people behave as they do
Predicting future employee behavior
Control at least partially and develop some
human activity at work.
Characteristics of OB
Inter-disciplinary
Research based theories and
practice
Increased acceptance of findings by
managers
10
Components of Organizational
Behavior
Understanding
organizational behavior
requires studying
Part One Individuals in Organizations
Part Two Group and Team Processes
Part Three Organizational Processes

Determinants of Employee Performance
Productivity
Absenteeism
Turnover
organizational behaviour is a field of study that investigates the impact that

individuals, groups and structure have on behaviour with in organizations, for
the purpose of applying such knowledge toward improving an organizations
effectiveness.
Systematic study - the use of scientific evidence gathered under controlled

conditions and measured and interpreted in a reasonably rigorous manner to
attribute cause and effect
The study of Organisational Behaviour involves:

consideration of the interaction among the formal structure
(organisational context in which the process of
management takes place)
the tasks to be undertaken
the technology employed and the methods of carrying out
work
the behaviour of people
the process of management
the external environment
Interrelated dimensions influencing behaviour:

The Individual - working environment should satisfy
individual needs as well as attainment of organisational
goals.
The Group - formal and informal. Understanding of
groups complements a knowledge of individual
behaviour.
The Organisation - impact of organisation structure and
design, and patterns of management, on behaviour.
The Environment - technological and scientific
development, economic activity, governmental actions.
Importance of OB
OB provides road map to our lives in organization

OB uses scientific research to help understand & predicting life
OB helps us influence organizational events
OB helps understand himself & others better
OB helps to understand the basis of motivation
OB is useful for maintaining cordial industrial relation
OB is also useful in the field of marketing
The most popular reason to study OB is if one wants to pursue
career in management
Upward trend in economy
SCOPE OF
OB
OB is the study of human behavior at work in organizations.
Accordingly the scope of OB includes the study of individuals,
groups and organization/structure.
The aspects of these three are

Individuals- Organizations are the associations of individuals.
Individuals differ in many respects.
The study of individuals, therefore, includes aspects as personality,
perception, attitudes, values,Job satisfaction, learning and
motivation.
Groups of individuals: Groups include aspects such as group

dynamics, group conflicts, communication, leadership, power and
politics and the like.
Organization structure: The study of organization/structure includes

aspect such as formation of organizational structure, culture and
change and development.
OB Insights
Improving People Skills
Improving Customer Service
Empowering People
Working in Networked Organizations
Stimulating Innovation and Change
Coping with Temporariness
Helping Employees Balance Work/Life
Conflicts
Declining Employee Loyalty
Improving Ethical Behavior
Why do organizations exist? Five
Reasons
THE BASIC PROCESS OF OB
Problem prevention
UNDERSTANDING PREDICITON CONTROLLING
How strong are they? What patterns of behavior What solutions are possible?
are present?
How do they Which variables can
interrelate? What is the cause-effect be influenced?
Relationship?
How can they be influenced?
Challenges Facing the Workplace
Organizational Level
Productivity
Developing Effective Employees
Global Competition
Managing in the Global Village Group Level
Working With Others
Workforce Diversity Individual Level
Job Satisfaction
Empowerment
Behaving Ethically
Challenges and Opportunities for OB
The workplace is contains a wide mix of cultures, races,

ethnic groups, genders and ages
Employees have to learn to cope with rapid change due to
global competition
Corporate loyalty has decreased due to corporate
downsizing and use of temp workers
Managers can benefit from OB theory and concepts
Contributing Disciplines to the OB
Field
25
Contributing Disciplines to the OB Field
26
Approaches to OB
Human Resources (Supportive)- Employee

growth and development are encouraged and
supported.
Contingency Different Managerial behaviors
are required by different environments for
effectiveness.
Results oriented- outcomes of organizational
behavior programs are assessed in terms of
their efficiency.
Systems all parts of an organization interact
in a complex relationship
Interactionalism Individual behavior results
from a continuous and multidirectional
interaction between characteristics of the
person and the situation:::
Personality OB MODEL
Intelligence
Perception
Learning Individual behaviour
Attitudes and Attribution
Motivation
Management and Managers

Group Dynamics
Team Dynamics
Leadership Organizational
Power and politics Group
behaviour Effectiveness
Communication
Conflict
Decision Making
Organizational culture
Human resource policies and
practices
Work stress Organization
Organizational change and
development
5 OB Models
Given by Keith Davis and Newstrom

are:
1) Autocratic
2) Custodial
3) Supportive
4) Collegial
5) Systems
33
AUTOCRATIC MODEL
The basis of this model is power with a managerial

orientation of authority.
The employees in turn are oriented towards obedience
and dependence on the boss. The employee need that
is met is subsistence.
The performance result is minimal - most prevalent
during the industrial revolution persons in power can
demand work from workers pushing, directing tight
control unfair practices, low payment and exploitation
employees put in min work in the job to serve the
basic needs of the family - though harsh, it has worked
well in certain conditions
E.g., Organizational crisis.
34
Custodial
The basis of this model is economic resources with a

managerial orientation of money.
The employees in turn are oriented towards security
and benefits and dependence on the organization.
The employee need that is met is security. The
performance result is passive cooperation.
To perk up the sagging morale of the workers under the
autocratic model employers began to offer various
welfare schemes in the 19th century paternalism
fringe benefits job security.
35
E.g., IBM makes considerable efforts to stabilize the workforce and
preserve their jobs reduces overtime, freezes hiring, allows job
transfers and offers retirement incentives and sub-contracting to
adjust IT slow downs. The organisation should have considerable
resources to pay pension benefit from physical needs to security
needs.
Workers depend more on the organization and less on the

managers ensures loyalty economic rewards are assured even
if the employee does not perform contented but performance
may decline because of job security 1940s and 50s University
of Michigan conducted studies which revealed that happy
employees are not necessarily the productive employees.
36
Supportive
The basis of this model is leadership with a managerial orientation of
support.
The employees in turn are oriented towards job performance and
participation.
The employee need that is met is status and recognition.
The performance result is awakened drives.
The leadership and other processes of the organisation must be

such as to ensure a maximum probability that in all interactions
and all relationships within the organisation each member will, in
the light of his or her back ground, values, and expectations view
the experience as supportive and one which builds and maintains
his or her sense of personal worth and importance. e.g., TATAs.
Ensures organisatinal harmony.
37
Collegial
The basis of this model is partnership with a managerial

orientation of teamwork.
The employees in turn are oriented towards responsible behavior
and self-discipline.
The employee need that is met is self-actualization. The
performance result is moderate enthusiasm. Collegial means a
group of people working for a common purpose.
Manager is not addressed as boss but is a facilitator. Employees
are self disciplined, self content and self actualized. E.g., a R&D
team or a project team.
Although there are four separate models, almost no organization

operates exclusively in one. There will usually be a predominate
one, with one or more areas over-lapping in the other models.
38
autocrat Custodial Supportiv Collegial
ic
Autocratic e Supportive
Custodial
Collegial Economic
Model depends on Power Leadership Partnership
Model depends on resources
PowerEconomic
Managerial
resourcesLeadershipPartnershipManagerial
Authority Money Support Teamwork
orientation
orientationAuthorityMoneySupportTeamworkEmployee
orientationObedienceSecurityJobResponsiblityEmployee
Employee Responsibili
psychological
orientation resultDependence
Obedience Security on bossDependence
Job
ty
on organizationParticipationSelf-disciplineEmployees
Dependenc
needs metSubsistemceMaintenanceHigher-orderSelf-
Employee
Dependen e on Self-
psychological
actualizationPerformance Participation
resultMinimumPassive
ce on boss organizatio discipline
result
cooperationAwakened drivesModerate
n enthusiasm
Self-
Employees needs Subsistenc Maintenanc
Higher-order actualizatio
met e e
n
Passive Awakened Moderate

Performance result Minimum
cooperation drives
39 enthusiasm

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ORGANISATION BEHAVIOUR

Organisation Behaviour is concerned with

Insert Figure 1.1 here

To learnabout yourself and how to deal with others

A consciously coordinated social unit, composed of a group of

The four goals of Organizational behavior are:

To describe systematically how people behave

Part One Individuals in Organizations

Part Two Group and Team Processes

Part Three Organizational Processes

organizational behaviour is a field of study that investigates the impact that

Systematic study - the use of scientific evidence gathered under controlled

The study of Organisational Behaviour involves:

Interrelated dimensions influencing behaviour:

OB provides road map to our lives in organization

The aspects of these three are

Groups of individuals: Groups include aspects such as group

Organization structure: The study of organization/structure includes

UNDERSTANDING PREDICITON CONTROLLING

The workplace is contains a wide mix of cultures, races,

Human Resources (Supportive)- Employee

Management and Managers

Given by Keith Davis and Newstrom

The basis of this model is power with a managerial

The basis of this model is economic resources with a

Workers depend more on the organization and less on the

The leadership and other processes of the organisation must be

Ensures organisatinal harmony.

The basis of this model is partnership with a managerial

Although there are four separate models, almost no organization

Passive Awakened Moderate

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