ORGANISATIONAL

BEHAVIOUR

Prof. Pratibha Singh

 “Organisa
t io n a l
behaviour
i s d i re c t l y
DEFINITION- OB concerned
understan
w i t h t he
production d i n g,
and contro
human be l of
• Organisational behaviour is a study which involves haviour in
examining and analysing the human behaviour in organisati
ons.”—Fr
an organisation. Luthans. ed

• Organisational behaviour studies the interaction

within different levels of organisation and how the
people at different levels respond or behave in a
situation.

• The different aspects of organisational behaviour

are people, structure, technology, and the external
environment.
CHARATERISTICS- OB
1.Integral Part Of Management
It is concerned with understanding the human behaviour of those working with the
organisation.
Employees are important resources for every organisation. Therefore their proper
management and treatment become an essential requirement for every business.

2.Goal-Oriented
It mainly analyse the behaviours of individuals working with the organisation. After
analysing and detecting problems it take corrective actions and ensure result- yielding
actions in organisation. Thus Organisational behaviour has an important role in the
achievement of organisational goals.
3.On-Going Process
Organisation Behaviour is continuous and ongoing concept followed within the
organisation. It continuously makes an effort to ensure organisation effectiveness. All
activities of the organisation are continuously monitored through organisational
behaviour.

4.Multi-Level Analysis
There are different level analyses which are performed by organisation behaviour.
Organisational Behaviour performs analysis at three levels to understand the
behaviour: Individual behaviour, group behaviour and organisation behaviour itself.

5.Branch Of Social Science

Organisation behaviour uses various concepts of social science in performing various
researches required for understanding organisation structure. It is influenced by
several social sciences. Sociology, Anthropology and psychology are some of
important social science used by organisational behaviour.
6.Both Science And Art
Collection of all relevant information systematically about human behaviour is
termed as science. Application of collected behavioural knowledge and skills in the
organisation is known as art.

7.Normative Science
It is not only concerned with finding and defining the cause and effect relations of
organisational situations. It also finds out mean that is best and accepted by all
out of its researches to ensure organisational results.
IMPORTANCE- OB
1. Skill Improvement
This includes the ability of employees and use of knowledge to become more efficient.

2. Understanding Consumer Buying Behaviour

It also an important part to improve the marketing process by understanding
consumer buying behaviour.

3. Employee Motivation
Organisational Behaviour (OB) helps to understand the basis of Motivation and
different ways to motivate employees properly.

4. Efficiency & Effectiveness

Study of organisational behaviour helps to increase efficiency and effectiveness of the
5. Nature of Employees
Helps in understanding the nature of employees whether they are-
• Introvert
• Extrovert
• Motivated
• Dominating
• Other

6. Anticipating Organisational Events

The scientific study of behaviour helps to understand and predict organisational
events.
Example: Annual Business Planning, Demand Management, Product line
management, Production Planning, Resources Scheduling, Logistics etc.

7. Better Environment of Organisation

OB helps to create a healthy, ethical and smooth environment in an organisation.
8. Optimum or Better Utilization of Resources
It helps to understand employees and their work
style and skill in a better way.
By understanding this, management can train and
motivate employees for optimum utilization of
resources.

9. Goodwill of organization
Organisational Behaviour helps to improve Goodwill
of organization.
CONTRIBUTING DISCIPLINES -OB
It is the best tool to understand why people think, what they think, and how they think.
Psychology
It’s the study of human behaviour in a social setting consisting of human interaction, social
Sociology ties, growth of society, structure, and regulations.

It is the combination of both psychology and sociology.

Social Psychology It explains the interaction, interdependence, and influence of people among one another.

It studies the evolution or development stages of human beings consisting of human nature,
Anthropology different societies, and how different cultures are developed.

Political Science It deals with politics and its practices in different scenarios .

The science of economics is related to the cost. It is the study of how to minimize cost, how
Economics to best use scarce resources, and achieve more from less.

Medicine It treats both physical and psychological diseases of people.

 Seve
n p e r sp
cogni ectiv
t i v e
beha e ,
Psychology v
psych ioural,
o d yn
It is the behavioural science that studies human huma amic,
behaviour and their mental processes. biolog nistic,
ic al , s
cultu o ci o -
It helps to understand why people think, what ra
evolu l, and
they think, and how they think. tiona
ry.
Psychology has contributed many important
concepts to OB-

• Motivation • Employee Selection

• Attitude
• Learning
• Work Design
• Perception • Job Stress, etc.
• Personality
• Emotion
• Training
 Sociology Social Psychology

• It is the study of human behaviour in a social

setting consisting of human interaction, Social psychology is the combination of both
social ties, growth of society, structure, and psychology and sociology.
regulations.
It studies the social behaviour and thought of
people and how people think, feel, process,
• The major contributions in OB areas of and act.
sociology are group dynamics, status,
culture, power, communication, socialization, It explains the interaction, interdependence,
organizational change, and technology.
and influence of people among one another.

One of the main contributions of social

• Sociologists view an organization as a system psychology to the OB is how to predict,
consisting of a variety of people having manage, and change the behaviour of
humans in organizational settings.
different roles, statuses, power, and
authorities.
 Anthropology Political Science
It studies the evolution or development stages
of human beings consisting of human nature, Political science deals with politics
different societies, and how different cultures and its practices in different
are developed. scenarios.

It helps to understand the society of humans It mainly concerns the allocation of

and their activities. power, conflict resolution, group
coalition, and how to manipulate
power for individual self-interest.
Its major contributions in OB include
comparative values, attitude, analysis, and Its concerns in OB mainly deal with
norms. the allocation of power to the
employees, manipulation, and
controlling of conflicts in the
It helps to understand cultural factors in
organization.
organizational settings such as organizational
culture, environment, power etc.
 Medicine
Medicine is the branch of health science that Economics
deals with the identification and treatment of
diseases to improve the health of people. The science of economics is related to the
cost. It is the study of how to minimize
It treats both physical and psychological cost, how to best use scarce resources, and
diseases of people.
achieve more from less.

To run the daily operations of the

While treating people it observes their behaviour organization there is a need for money.
of people and tries to find out the causes.
The study of economics helps managers to
make best use of the organization’s limited
Some causes are related to the body and some
resources and economic factors such as
are mental.
labour market dynamics, wages, demand-
supply, cost of production, etc. also
Employees also suffer from psychological influence organizational behaviour.
diseases, and applications of medical science
help managers organize different wellness
programs so that employees.
CHALLENGES - OB
• Improving People’s Skills
• Improving Quality and Productivity
• Managing Workforce Diversity
• Responding to Globalization
• Empowering People
• Coping with Temporariness
• Stimulating Innovation and Change
• The emergence of E-Organisation & E-Commerce
• Improving Ethical Behaviour
• Improving Customer Service
• Employees Work-Life Balance Conflicts
• Flattening World
1. Improving People’s Skills
Technological changes, structural changes,
environmental changes are accelerated at a
faster rate in the business field.
Unless employees and executives are equipped
to possess the required skills to adapt to those
changes, the targeted goals cannot be
achieved in time.

2. Improving Quality and Productivity

To improve quality and productivity, managers
are implementing programs like total quality
management and reengineering programs that
require extensive employee involvement.
3. Managing Workforce Diversity
• This refers to employing different categories of
employees who are heterogeneous in terms of gender,
race, ethnicity, relation, community, physically
disadvantaged, elderly people, etc.
• The major challenge for organizations is to become more
accommodating to diverse groups of people by
addressing their different lifestyles, family needs, and
work styles.

4. Responding to Globalization
• Today’s business is mostly market-driven.
• Wherever the demands exist irrespective of distance,
locations, climatic conditions, the business operations
are expanded to gain their market share and to
remain in the top rank, etc. Business operations are
no longer restricted to a particular locality or region.
5. Empowering People
• Encouraging the employees to participate in the work-related
decision will sizable enhance their commitment to work.
• Due to the implementation of empowerment concepts across all
the levels, the relationship between managers and the
employees is reshaped.
• Managers will act as coaches, advisors, sponsors, facilitators
and help their subordinates to do their tasks with minimal
guidance.

6. Coping with Temporariness

• Today, change is an ongoing activity for most managers. The
concept of continuous improvement implies constant change.
• The actual jobs that workers perform are in a permanent state
of flux.
• workers need to continually update their knowledge and skills
7. Stimulating Innovation and Change
Today’s successful organizations must foster innovation
and be proficient in the art of change, otherwise, they
will become candidates for extinction in due course of
time and vanished from their field of business.

8. The emergence of E-Organisation & E-

Commerce
It refers to the business operations involving the
electronic mode of transactions. It encompasses
presenting products on websites and filling the
order.
9. Improving Ethical Behaviour
• The complexity in business operations is forcing the
workforce to face ethical dilemmas, where they are
required to define right and wrong conduct to complete
their assigned activities.
• Differentiating right things from wrong behaviour has
become more blurred.

10. Improving Customer Service

• Service should be the first production-oriented by using
technological opportunities like a computer, the
internet, etc.
• To improve customer service we need to provide sales
service and also the after-sales service.
11. Helping Employees Balance Work-Life
Conflicts
• Employees are increasingly complaining that the
line between work and non-work time has become
blurred, creating personal conflict and stress.
• They are also recognizing that work is squeezing
out personal lives and they’re not happy about it.

12. Flattening World

• Access to information has led to an increase in
innovation, as knowledge can be shared instantly
across time zones and cultures.
• It has also created intense competition, as the
speed of business is growing faster and faster all
the time.
MODELS- OB

1.Autocratic Model
2.Custodial Model
3.Supportive Model
4.Collegial Model
5.System Model
1. Autocratic Model
1. The autocratic model depends on power. Those who are in command must
have the power to demand and an employee who does not follow orders will be
penalized.

2. In an autocratic environment the managerial orientation is formal, official

authority.

3. In this employee is obedient to a boss, not because of respect.

4. The psychological result for employees depends on their boss, whose power to
hire, fire, and perspire is almost absolute.

5. The boss pays minimum wages because minimum performance is given by

employees.

6. Some employees give higher performance because of internal achievement

drives.
2. The Custodial Model
1. This model depends on economic resources.

2. This approach depends on money to pay wages and benefits.

3. Since employee’s physical needs are already reasonably met, the employer focuses
security needs as a motivating force.

4. The custodial approach leads to employee dependence on the organization for

security and welfare rather than being dependence on their boss for their weekly bread.

5. Employees working in a custodial environment become psychologically preoccupied

with their economic rewards and benefits.

6. Employees are well maintained and contended. However, contentment does not
 The Supportive Model
1. This model relies on leadership.
2. The Performance results will be awakened drives.
3. Depends on leadership.
4. Managerial orientation is support.
5. Employee orientation is job and performance.
6. Employee psychological result is participation.
7. Employee needs met is status and recognition.
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 Collegial Model

• An extension of the supportive model is the collegial model.

• The term collegial relates to a body of people working together cooperatively.
• The collegial model depends on management’s building a feeling of
partnership with employees.
• The managerial orientation is toward teamwork.
• The employee’s response to this situation is responsibility.
• The psychological result of the collegial approach for the employee is self-
discipline. Feeling responsible, employees discipline themselves for
performance.
• In this kind of environment employees normally feel some degree of
fulfilment, worthwhile contribution, and self-actualization.
• This self-actualization will lead to moderate enthusiasm in performance.
The System Model

• This model depends on the belief that employees want more than just a pay check and
job security from their jobs.
• Since they are spending many hours of their day at work, they want a work context to
be ethical, infused with integrity and trust, and provides an opportunity to
experience a growing sense of community among coworkers.
• Managers must increasingly demonstrate a sense of care and compassion, being sensitive
to the needs of a diverse workforce .
• In response, employees embrace the goal of organizational effectiveness, and reorganize
the mutuality of company-employee obligations in a system viewpoint.
FRAMEWORKS- OB Cogni
simpl tion can b
y de e
act of fined as th
e
item o knowing an
f infor
Cognitive Framework matio
n.

Cognition means a mental process involved in knowing, learning and understanding things .

Cognitive activities include sensation and perception, thinking, attention, imagery, attitudes,
memory, learning, language, and reasoning and problem-solving.

Four variables that influence the development of cognitive processes:

1. Biological development.
2. Interaction with the physical world.
3. Interaction with the social world, and
4. Integration of new and past experiences as the child matures.
Cognitive development consists of a constant effort to adapt to the environment in
terms of the processes of assimilation and accommodation.

People whose cognitive patterns habitually distort reality and misjudge meanings
may find it difficult to deal effectively with everyday life.

Cognitive errors cause them to misinterpret events, respond incorrectly, and engage
in self-defeating behaviour.
Cognitive
Emotional State Mood Response Behaviour Response
Interpretation
Perceived loss Sadness Depression Contract
Perceived reward Joyousness Hypomania Expand
Perceived threat Fearfulness Anxiety withdraw
Perceived
Anger Suspiciousness Defend/attack
punishment
Behaviouristic Framework
• Study of observable behaviours instead of the elusive mind.
• They advocated that behaviour could be best understood in terms of stimulus and
response (S-R).
• Responses can be conditioned or trained by presenting conditioned
stimulus/consequences.

• Example: An organization passes a circular to the employees asking them to stay

longer in order to increase the production to meet the increasing demand.
• The circular is the stimulus. The employees may increase the production. This is
the response.
Social Cognitive Framework

• The theory states that when people observe a model performing a behaviour and the
consequences of that behaviour, they remember the sequence of events and use this
information to guide subsequent behaviours.

• Social learning theory takes the position that behaviour can best be explained in
terms of a continuous reciprocal interaction among cognitive, behavioural, and
environmental determinants.

• The person and the environmental situation do not function as independent units
but, in conjunction with behaviour itself, reciprocally interact to determine behaviour.

Example- You have learned altruistic behaviour from seeing your parents bring food to
a homeless person.