OB Cont 2

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ORGANIZATION
BEHAVIOUR
INTRO CONTINUE
2 CHARACTERISTICS OF OB
• Modern organizational behaviour is characterized by the acceptance of a human resource model. It takes a more
positive view of human beings. People are accepted as they are and not prejudged using stereotypes.
1. Organizational behaviour is a rational thinking, not an emotional feeling about people. The major goals of
organizational behaviour are to explain and predict human behavioural in organisations. It is action-oriented and goal-
directed.
2. Organizational behavioural seeks to balanced human and technical values at work. It seeks to achieve productivity
by building and maintaining employee’s dignity, growth and satisfaction, rather than at the expense of these values.
3. Organizational behaviour integrates behavioural sciences. Many of its core concepts are borrowed from others
fields and discipline like social psychology, sociology, and anthropology, etc.
3 4. Organisational behaviour is both a science and an art, the knowledge about human behaviour in organizations leans
towards being science. Modern organizational behaviour is, at once, empirical, interpretative, and critical. It is an
interpretative science in the pursuit of knowledge and meaning.
•The basic purpose is to make meaningful the facts of organizational life. Modern OB is an optic perspective; a process
for looking at events, a way of life. It has empirical facts, and interesting interpretations and powerful paradigms.
•However it is an inaccurate science to provide specific answers to specific organizational problems. As such very little
can be prescribed to consistently predict relationships between a variable on broad scale. The skills in applying the
knowledge clearly lean towards being art.
5. Organizational behaviour exists at multiple like levels. Behaviour occurs at the individual, the group, and the
organizational systems levels. Behaviour that is attributable to each of these levels can be both identified and isolated
but at the same time these three levels interact with each other and OB-being affected by the behaviour of individuals,
group level behaviour is affected by the organizational level phenomena and so on.
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• 6. Organizational behaviour does not exist in vacuum. Organizations are made up of both social and
technical components and therefore characterized as social-technical systems. The operational
implication of this is that any approach of looking at behaviour must also take into account the
technical component of organization especially such issues as the nature of work and the
technology. Organizations at the same time, must take into account the constructs of the working
environment, for example, the extent to which the market and the product is changing.
ORGANIZATIONAL BEHAVIOUR – FOUR MAJOR MODELS: AUTOCRATIC, CUSTODIAL,
SUPPORTIVE AND COLLEGIAL
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1. Autocratic:
•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.
2. 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.
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•3. 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.
•4. 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.
8 SYSTEM MODEL
• In the system model, the organization looks at the overall structure and team
environment, and considers that individuals have different goals, talents and potential.
• The intent of the system model is to try and balance the goals of the individual with the
goals of the organization.
• Individuals obviously want good remuneration, job security, but also want to work in a
positive work environment where the organization adds value to the community and/or its
customers.
• The system of model should be an overall partnership of managers and employees with a
common goal, and where everybody feels that they have a stake in the organization.
9 CONTINGENCY MODEL
• A contingency model is an organizational theory that claims that there is no best

way to organize a corporation, to lead a company, or to make decisions. Instead,
the optimal course of action is contingent (dependent) upon the internal and
external situation. A contingent leader effectively applies their own style
of leadership to the right situation. Contingent leaders are flexible in choosing and
adapting to succinct strategies to suit change in situation at a particular period in
time in the running of the organization.
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•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.
•The first model, autocratic, has its roots in the industrial revolution. The managers of this type of
organization operate mostly out of McGregor’s Theory X. The next three models begin to build on
McGregor’s Theory Y. They have each evolved over a period of time and there is no one best model.
In addition, the collegial model should not be thought as the last or best model, but the beginning of a
new model or paradigm.
CHALLENGES FACED BY ORGANIZATIONAL BEHAVIOR
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•1. Globalization:
•Implies that no organization can work effectively in isolation and has to comply with the global
factors that have an impact on it. 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.
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•2. Management of Workforce Diversity:

•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 availability of
fresh ideas and talents.
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•3. Improvement in Quality and Productivity:

•Refers to matching the desired levels of quality and productivity with the ever-changing demands. Management
guru Tom Peter says, “Almost all quality improvement comes via simplification of design, manufacturing, layout,
processes, and procedures.” Now-a-days, a number of programs, such as process reengineering and quality
management are being implemented to bring improvement in productivity.
•4. Improvement in People Skills:
•Implies that it is the necessity of time to improve and upgrade the skills of employees from time to time. 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.
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•5. Incorporation of Innovation:

•Implies that it is necessary to incorporate change in rules, regulations, processes and procedures of an
organization to suit the current standards. 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:
•Indicates that 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.
IMPORTANCE OF ORGANISATIONAL BEHAVIOUR
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•1. Creates Sustainable Competitive Advantage:
•Everyone knows that the voice of Lata Mangeshkar is very melodious. It is valuable, rare and difficult to imitate.
Hence, she has been having little or no competition for long and no one could substitute her. This analogy
explains sustainable competitive advantage. Resource-based view of firms asserts that competitive advantage is
created through valuable, rare, inimitable, and non-substitutable resources.
•OB converts people in an organisation into valuable, rare, inimitable, and non-substitutable through various OB
practices aligned to achieve goals. For example, OB can create a culture of innovation, performance, knowledge
sharing, and trust through a combination of individual development, team design, and leadership development.
•Google would meet this bill and this is the reason why it is difficult to beat them. Though OB deals with
developing people in the organisation, its reverberations can be felt by the customers too. If the employees are
not happy or do not behave appropriately with the customers, the result can be disastrous.
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•2. Individual Component:

•Rajiv is not able to get results in sales and finds the job very stressful. His boss suspects his introvert nature. If we had a
psychometric test before selecting him for the job, this situation could have been avoided. If we erred in selection, we can still
confirm his personality trait and shift him to another job profile where he can succeed. A third alternative is to train him to
change his behaviour.
•This illustrates that OB is important to accomplish the following:
•i. Identify the underlying reasons for poor or non-performance and enable change.
•ii. Help a person to modify his/her behaviour to achieve full potential by identifying what motivates a person, how the person
can learn and be more creative, and manage stress. In other words, OB can facilitate taking a whole gamut of actions required
for the person to contribute to competitiveness.
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•3. Group/Team Component:

•A company had created two teams simultaneously to develop a new product. The Vice-President, product development, had
done so to create internal competition and speed up the product development to beat the competition.
•After three months, Team A’ had made no progress, but Team ‘B’ was on the verge of testing the first prototype. Both teams
were full of bright people. Hence, the Vice-President wondered what had happened to Team A’. After some deliberation, one Ms
Shami Jain was transferred from Team ‘B’ to Team A’.
•She realised that Team A’ had far better ideas, but was unable to take a decision. She championed one of the ideas, and within a
month, Team A’ came out with a prototype, which was later adopted by the company. What did the Vice-President do? She used
her knowledge of Team Wheel from OB and transferred a person who could get Team A’ to decide. This illustrates the
importance of OB in designing effective teams.
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•4. Organisational Component:

•OB helps in designing, structuring, and changing culture to create a learning and innovative
organisation. It suggests ways to implant an organisational sub-culture within the overall culture.
•For instance, although employees and organisations in Kerala respond to frequent ‘hartals’ (enforced
stoppage of work as a method of protest adopted by political parties in India), employees of various
organisations working in the Technopark in Trivandrum, the capital of Kerala, where the IT industries
are located, do not participate in such hartals. It shows the existence of a sub-culture in companies
located in the Technopark.
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1

• A contingency model is an organizational theory that claims that there is no best

•2. Management of Workforce Diversity:

•3. Improvement in Quality and Productivity:

•5. Incorporation of Innovation:

•2. Individual Component:

•3. Group/Team Component:

•4. Organisational Component:

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