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MODULE - I

FUNDAMENTALS OF ORGANISATIONAL BEHAVIOUR

Compiled by
Dr. (Ms.) Subhashree Panda
Assistant Professor (Management)

Department of Humanities and Social Sciences

Parala Maharaja Engineering College, Sitalapalli, Berhampur
 SYLLABUS

ORGANISATIONAL BEHAVIOUR

Module I :

Fundamentals of OB: Definition, scope and importance of OB,

Relationship between OB and the individual, Evolution of OB,
Theoretical framework (cognitive), behavioristic and social cognitive,
Limitations of OB.

Module II :

Attitude: Importance of attitude in an organization, Right Attitude,

Components of attitude, Relationship between behavior and attitude,
Developing Emotional intelligence at the workplace, Job attitude,
Barriers to changing attitudes.

Personality and values: Definition and importance of Personality for

performance, The Myers-Briggs Type Indicator and The Big Five
personality model, Significant personality traits suitable to the workplace
(personality and job – fit theory), Personality Tests and their practical
applications.

Perception: Meaning and concept of perception, Factors influencing

perception, Selective perception, Attribution theory, Perceptual process,
Social perception (stereotyping and halo effect).

Motivation: Definition & Concept of Motive & Motivation, The Content

Theories of Motivation (Maslow’s Need Hierarchy & Herzberg’s Two
Factor model Theory), The Process Theories (Vroom’s expectancy

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Theory & Porter Lawler model), Contemporary Theories – Equity Theory
of Work Motivation.

Module III :

Foundations of Group Behavior: The Meaning of Group & Group

behavior & Group Dynamics, Types of Groups, The Five – Stage Model
of Group Development.

Managing Teams: Why Work Teams, Work Teams in Organization,

Developing Work Teams, Team Effectiveness & Team Building.

Leadership: Concept of Leadership, Styles of Leadership, Trait

Approach Contingency Leadership Approach, Contemporary leadership,
Meaning and significance of contemporary leadership, Concept of
transformational leadership, Contemporary theories of leadership,
Success stories of today’s Global and Indian leaders.

Module IV :

Organizational Culture : Meaning & Definition of Organizational

Culture, creating & Sustaining Organizational Culture, Types of Culture
(Strong vs. Weak 8 Culture, Soft Vs. Hard Culture & Formal vs. Informal
Culture), Creating Positive Organizational Culture, Concept of
Workplace Spirituality.

Module V :

Organizational Change: Meaning, Definition & Nature of Organizational

Change, Types of Organizational Change, Forces that acts as stimulants
to change.

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Implementing Organizational Change : How to overcome the Resistance
to Change, Approaches to managing Organizational Change, Kurt
Lewin’s-Three step model, Seven Stage model of Change & Kotter’s
Eight-Step plan for Implementing Change, Leading the Change Process,
Facilitating Change, Dealing with Individual & Group Resistance,
Intervention Strategies for Facilitating Organizational Change, Methods
of Implementing Organizational Change, Developing a Learning
Organization.

********************

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Module - I
Fundamentals of Organizational Behaviour
 Definition and meaning of OB
 Nature and Scope of OB
 Importance of OB
 Limitations of OB
 Relationship between OB and the individual
 Evolution of OB
 Theoretical Framework of OB
 Cognitive framework
 Behaviouristic framework
 Social cognitive framework
 Limitations of OB

The Study of Organizational Behaviour

Meaning of Organizational Behaviour
 The term ‘Organizational Behaviour (often abbreviated OB) refers to
the study of human behavior in the organization.
 Human behavior in organization is relatively new concept and it
emerged as a distinct field of study in the late 1950’s and early
1960’s.
 Organizational Behavior (OB) is a field of study that investigates the
impact that individuals, groups and structure have on behavior
within organizations, for the purpose of applying such knowledge
toward improving an organization’s effectiveness.

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 OB refers to the behavior of individuals and groups within
organizations and the interaction between organizational members
and their external environments.
 OB is the study of what people do in an organization and how their
behavior affects the organization’s performance.
 It is an action-oriented and goal-oriented discipline.
 Its goals are to make managers more effective at describing,
understanding, predicting and controlling human behavior.
 Describe Behavior: how people behave under a variety of
conditions.
 Understand Behaviour: understand why people behave as
they do in the organizations.
 Predict behavior: predict future employee behavior, which
employees might be dedicated and productive, or which ones
might be absent, or disruptive on a certain day.
 Control behavior : Control and develop some human activity
at work (Skill development, Team effort, Productivity etc.)

UNDERSTANDING PREDICTION CONTROLLING

(The Basic Processes of OB)

Definitions of Organizational Behaviour (OB) :

1. According to J. W. Newstrom : Organizational behaviour is the
systematic study and careful application of knowledge about how
people – as individuals and as groups – act within organizations.
2. According to Fred Luthans: Organizational behaviour is directly
concerned with the understanding, prediction and control of human
behavior in organisations.

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3. According to Callhan et al.,: Organizational behaviour is a subset
of management activities concerned with understanding, predicting
and influencing individual behavior in work organization.

4. According to Raman J. Aldag : Organizational behaviour is a

branch of the social sciences that seeks to build theories that can
be applied to predicting, understanding and controlling behavior in
work organisation.

Figure 1.1(a) reveals the model of OB.

Nature of Organizational Behaviour :

The essential features of OB are as follows:

1. Three Level of analysis: OB focuses attention on three distinct

levels of analysis—individuals, groups and organizations. OB tries
to look into the impact the individuals, groups, and organisations
have on the behavior of members working in an organization.
2. Distinct Field of Study : OB has emerged as a distinct field of
study - of what people think and feel, do in and around
organizations. A large number of research studies and conceptual
developments are constantly being added to its knowledge base.
3. Interdisciplinary in Nature : OB is an interdisciplinary field
dedicated to better understanding and managing people at work. It
draws on a wide variety of social science disciplines including
Psychology, Sociology, Anthropology, Economics and Political
science etc. Figure 1.1(b) is an overview of the major contributions
of the various disciplines to the study of organizational behavior.

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4. Use of Scientific Methods: The field of OB seeks to develop a
base of knowledge about behavior in organization by employing an
empirical and research based approach. It is based on systematic
observation and measurement of the behavior or phenomenon of
interest.
5. Focus on application: The field of OB lays emphasis on
applications that make a real difference in how organizations and
people in them perform. Ex- What steps could be taken to reduce
work–related stress, what can be done to improve organizational
communication etc.
6. Contingency Thinking: OB relies on contingency thinking
(meaning that different situations require different behavioral
practices for greatest effectiveness) while trying to understand and
solve work-related problems. The strength of the contingency
approach is that it encourages a close examination of each
situation prior to action.
7. Subset of Management: OB is a significant subset of
management.
8. Positive and Optimistic: Modern OB is positive in nature and is
very optimistic about human nature and behavior. Employees are
trusted, treated with respect and every attempt is made to improve
the quality of life at work.
9. Integrative in Nature: OB seeks to balance 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. OB seeks to fulfill employees’ needs
and aspirations while trying to realize organizational goals.

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Organisational Structure
Organisational Culture, Creativity
and Innovation
Human Resource Policies and
Practices
Organisation Level
Organisational Change and
Development
International Organisational
Behaviour

Productivity

Group Behaviour
Teams and Teamwork
Communication Absenteeism
Leadership Group Level Outcomes
Power and Politics
Conflict and Negotiation
Turnover

Personality
Job Satisfaction
Perception and Attribution
Ethics and Social
Responsibilities
Values, Attitudes and Job
Satisfaction Individual Level
Learning and Behaviour
Modification
Basic Concepts in Motivation
Job Design, Empowerment and Work
Scheduling

Resources
Figure 1.1 (a): Basic OB Model

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Figure 1.1(b) : Major Disciplines and their Contributions to OB

PERSONALITY
PERCEPTION
ATTITUDE
LEARNING
MOTIVATION
JOB SATISFACTION
PSYCHOLOGY INDIVIDUAL
TRAINING
LEADERSHIP EFFECTIVENESS
PERFORMANCE APPRAISAL
EMPLOYEE SELECTION
WORK DESIGN
WORK STRESS

GROUP DYNAMICS
COMMUNICATION
LEADERSHIP
POWER AND POLITICS
CONFLICT

SOCIOLOGY

ORGANISATIONAL STRUCTURES
FORMAL AND INFORMAL
ORGANISATIONS
ORGANISATIONAL CULTURE GROUP STUDY OF OB
ORGANISATIONAL CHANGE

BEHAVIOURAL CHANGE
SOCIAL ATTITUDE CHANGE
PSYCHOLOGY COMMUNICATION
GROUP PROCESSES
GROUP DECISION-MAKING

INDIVIDUAL CULTURE
ANTHROPOLOGY ORGANISATIONAL CULTURE
ORGANISATIONAL ENVIRONMENT

ORGANISATIONAL POWER
POLITICAL POLITICS
ORGANISATIONS
SCIENCE CONFLICTS
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Figure 1.1 (c) : Scope of OB

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Scope of Organizational Behavior :
OB is the study of human behavior at work in organizations.
Accordingly, the scope of OB includes the study of individuals,
groups and organizations. The scope of OB depicted in Figure 1.1(c).

 Individual behavior comprises such aspects as personality,

perceptions, attitudes, learning and motivation.
 Group behavior include aspects such as group dynamics,
leadership , power and politics, communication, and conflict etc.
 Study of the organizations include aspects such as
organizational structure, organizational development,
organizational change, organizational culture and organizational
climate etc.

In a nut shell, the individual behavior will influence and is influenced by

group behavior, which in turn has impact on behavior of the
organizations. The cumulative effect of all these behaviors is felt on
organizational effectiveness which in turn has impact on individual,
group and organizational behaviors.

Importance of Organizational Behaviour :

1. OB provides a road map to our lives in organizations. Every one of
us has an inherent need to know about the world in which we live.
This is particularly true in organizations, as they have a profound
effect on our actions and behaviors.
2. The field of OB uses scientific research to help us understand and
predict organizational life. It helps us make sense of the workplace

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 and to some extent, predict what people will do under various
conditions.
3. OB helps us influence organizational events. Whether one is a
marketing specialists or a computer programmer he or she needs
to know how to communicate effectively with others, manage
conflict, make better decisions, ensure commitment to ideas, help
work teams operate more effectively, and the like. OB theories and
concepts will help us influence organizational events.
4. OB helps an individual understand himself/herself and others better.
This helps improve interpersonal relations considerably.
5. OB helps the manager understand the basis of motivation and what
he or she should do to motivate subordinates.
6. The field of OB is useful for maintaining cordial industrial relations.
In other words, relations between management and employees are
often strained for reasons which are personal issues, not technical.
Human problems need to be tackled humanly. OB is very useful in
this context as it helps understand the cause of the problem,
predict its course of action, and control its consequences. It is also
a human tool for human benefit.
7. The subject of OB is useful in the field of marketing. In the dynamic
mechanism of the flow of goods and services from producer to
consumer, awareness of the nature of the individual and social
processes has an immediate or long range contribution to the
success or failure of the enterprise.
8. Effective management does not mean competent utilization of
technical or financial resources alone. Rather, it implies efficient
management of human resources. This is where OB comes into the
picture. It is a discipline which enables a manager to motivate his or
her subordinates towards higher productivity and better results.

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 Relationship Between OB and the Individual
Although people were always regarded as important in managing
organizations, their centrality has become sharper in today’s changing
world. While it is much easier to buy technology and to borrow and get
resources, both financial and material, it is impossible to buy human
processes such as faster decision making, effective negotiation, strategy
formulation, and leadership development. Our understanding of human
dynamics has thus become more complex as well as more crucial. This
is the focus of the organizational behavior (OB), which can be defined as
an interdisciplinary behavioral science studying phenomena related to
the dynamics(processes) of organizations and their various human units
(individuals, roles, dyads, teams, inter-teams, organizations, and the
organization- environment interface).

Human processes concern not only individual employees and other

members associated with organizations, but are also related to other
human units of an organization. Individuals come to work in an
organization and get integrated (or remain alienated) as per the roles
they occupy in the organization. The roles, therefore, require separate
attention. Individuals do not work in isolation. The smallest units in an
organization is a dyad(two member groups consisting of an employee
and a supervisor). For most tasks, people work in teams. Therefore,
enough attention needs to be given to the formation of teams , their
dynamics, and ways of making them more effective.

The effectiveness of an organization also depends on inter-team

collaboration - the collaboration of teams in an organization with other
internal teams as well as with external teams. Each organization has its
own dynamics: its culture, its climate, the process of its development
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and decay, and the process of its turnaround or dissolution. The
organization also deals with the external environment. Its interface with
the environment requires an understanding of political dynamics so that
it can not only adapt itself to the changing environment , but can also
impact and ‘shape’ the external environment.

Evolution of Organisational Behaviour

Concern for the welfare of the workers in management of business
enterprises has been in existence since ages.

 Kautilya’s Arthasastra states that there existed a sound base for

systematic management of human resources as early as the 4th
century B. C. itself.
 In 1800 B. C. itself, ’Minimum Wage Rate’ and ‘Incentive Wage
Plan’ were included in the Babylonian code of Hammurabi.
 The early part of the 19th century is significant, because it was
during this period that the industrial revolution took place that
resulted in the total transformation of the then industrial
environment.

The historical development of behavioural thought can be presented

under various stages for the sake of convenience of analysis :
1) Industrial Revolution
2) Scientific Management
3) Human Relations Movement
4) Hawthorne Studies

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1) Industrial Revolution :
The industrial revolution (1750-1900) brought about materialism,
discipline, monotony, boredom, job displacement, impersonality,
work interdependence, and other related behavioural phenomena.
The industrial revolution led to increase in production that eventually
gave workers increased wages followed by increased job
satisfaction and decreasing work hours.

In 1800, Robert Owen , a young Welsh factory owner, was one of

the first to emphasize the human needs of his employees. He
refused to employ the young children. He taught his adult workers
about proper cleanliness and improved their working conditions.
That is why he was called the “ Father of Personnel
Administration”.

In 1835, Andrew Ure, a pioneering behavioural scientist, published

his work on “The Philosophy of Manufacturers”. Besides, the
mechanical and commercial parts of manufacturing , he included
the “human factor’ as one of the factors of production in his book.
He provided workers with hot tea, medical treatment, a fan
apparatus for ventilation, and sickness payments.

In India, J. N. Tata, took a special interest in the welfare of his

workers. The welfare schemes included were installing humidifiers,
and fire sprinklers in his factories. In 1886, he instituted a pension
fund and in 1895 , began to pay accident compensation

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2) Scientific Management :
Frederick Winslow Taylor built the body of principles that
constitute the essence of Scientific Management (1890-1930). He is
rightly called “Father of Scientific Management “. Taylor
published his major work “Principles of Scientific Management”
in 1911. He did most of his work at the Midvale and Bethlehem
Steel companies in Pennsylvania.

Taylor described scientific management as “seventy five percent

science, and twenty five percent commonsense “. He emphasized
that the goal of scientific management was to use systematic study
to find the “one best way” of doing each task. To do that, managers
had to follow the four principles. These are as follows:

Taylor’s Four Principle’s of Scientific Management :

i) Develop a science of each element of work. Study it. Analyze
it. Determine the “one best way” to do the work.
ii) Managers had to scientifically select, train, teach and develop
workers to help them reach their full potential.
iii) Heartily cooperate with the employees so as to ensure all of
the work being done is in accordance with the principles of
science that has been developed.
iv) There is an almost equal division of the work and the
responsibility between the management and the workmen.

Above all, Taylor believed these principles could be used to determine

a “fair day’s work”. That is, what an average worker could produce, at
a reasonable pace, day in and day out. Once that was determined, it

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was management’s responsibility to pay workers fairly for that fair day’s
work.
Key concepts :
i) Scientific Task Planning: Scientific task is the amount of work
which an average worker can perform during a day under normal
working conditions.

ii) Time and Motion Studies: Time and motion studies have been
advocated by Taylor with a view to isolate wasteful and
unproductive motions on the job. The time study would indicate the
minimum time required to do a given job. Motion study is carried
out to find out the best sequence of the motions to do a job. The
aim is to eliminate unnecessary, ill- directed and wasteful motions
and find out one best way of doing a job.

iii) Standardisation: Under scientific management, standards have to

be set in advance for the task, materials, work methods, quality,
time and cost, working conditions etc.

iv) Differential Piece Rate System: Taylor advocated differential

piece rate system based on actual performance of the workers. In
this scheme a workers who completes the normal work gets
wages at higher rate per piece than a worker who fails to complete
the same within the time limit set by the management. Taylor’s
suggestion that wages must have a linkage with performance of
employees.

v) Functional Foremanship: In order to achieve the better

production control, Taylor advocated functional foremanship. He

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 advocated the division of the entire work of an organisation into ,
managerial and non- managerial. He made a complete separation
of planning function from doing function. He firmly believed that,
vertical specialisation would improve job performance.

3) Human Relations Movement :

The human relations movement is characterised by employee
cooperation and morale. In human relations approach, workers
were distinguished from non-human factors such as capital,
machine, building etc. Under this, people were to be treated as
human beings, and listening to their needs and problems and
involving them in decision making relating to working conditions.
Three factors contributed to the recognition of human as a distinct
factor among others in the organisation. These were:
i) Great depression,
ii) Labour movement and
iii) Hawthorne studies.

i) Great Depression:
The great depression is traced back to 1929, when the stock
exchange in America was crashed.
Negative impact of the depression:
 Wide spread unemployment
 Decline of purchasing power
 Collapse of markets
 Lowering of the standard of living of people
Positive outcomes of the depression:

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  Management began to recognise the importance of functional
areas like Finance, Marketing and Personnel to keep a
business survive and grow.
 Personnel departments were either created or given more
emphasis.
 Decent hours of work, fair wages, and adequate working
conditions were sacrificed for more production.
 Human relations received increasing significance as an indirect
effect of the depression.
ii) Labour Movement :
 Continued exploitation made workers realise that their
protection lay in their own hands.
 Management began to place primary emphasis on employee
relations.
 Attention was given to wages, hours of work, and conditions of
employment.

iv) Hawthorne Studies :

Australian–born Elton Mayo and his associates sought to increase
production by humanizing it through behavioural experiments
popularly known as Hawthorne Experiments.

In November 1924, a team of researcher from the Harvard

Business School of U.S.A began investigating into human aspects
of work and working conditions at the Hawthorne Plant of Western
Electric Company , Chicago. The company was producing bells
and other electric equipments for telephone industry. The team

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 conducted four separate experimental and behavioural studies over
a seven year period between 1924 and 1932. These were:

i) Illumination Experiments (1924-27): Find out the effect of

illumination on worker’s productivity.

ii) Relay Assembly Test Room Experiments (1927-28): To find out

the effects of changes in number of work hours and related working
conditions on worker productivity.

iii) Experiments in Interviewing the Workers: The interviewing

experiments enabled the researcher to discover the informal
organisation and its relationship to the formal organisation. A
cohesive work group led to significantly higher levels of job
satisfaction and productivity.

iv) Bank Wiring Room Experiments: The bank wiring room

experiments well confirmed the effect of the power of the peer group
and importance of group influence on workers behaviour and
productivity. The Hawthorne studies demonstrated that financial
incentives were not necessarily most important motivator for
workers. Group, group norms, and group behaviour play a crucial
role at work.

Theoretical Framework of Organisational Behaviour

An overall model of organizational behavior can be developed on the

basis of three theoretical frameworks. These include :
1. Cognitive Framework,

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 2. Behavioristic Framework , and
3. Social Cognitive Framework

1. Cognitive Framework :
Cognitive approach emphasizes the positive and freewill aspects of
human behavior and uses concepts such as expectancy, demand, and
intention. The word cognition has originated from Latin word
“cognoscere”, meaning of this latin word is “get to know”. Cognition
can be simply defined as the act of knowing an item of information. In
cognitive framework, cognitions precede behavior and constitute input
into the person’s thinking, perception, problem solving, and information
processing. Concepts such as cognitive map can be used as pictures or
visual aids in comprehending a person’s “understanding of particular,
and selective elements of the thoughts (rather than thinking) of an
individual, group and organization”.

The classic work of Edward Tolman can be used to represent the

cognitive theoretical approach. He felt that behavior is purposive, that it
is directed toward a goal. In his laboratory experiments, he found that
animals learned to behave as if they expected food when a certain
cue appeared. According to Tolman, learning consists of the
expectancy that a particular event will lead to a particular consequence.
This cognitive concept of expectancy implies that organism is thinking
about, or is conscious or aware of, the goal and result of a behavior
exhibited by it. It means that a person desires a goal and also knows the
behavior that will lead to achievement of the goals.

This cognitive framework is useful in analyzing perception, personality,

motivation, decision making of human in the organisation.
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2. Behavioristic Framework :

Pioneer behaviorists Ivan Pavlov and John B. Watson stressed the

importance of studying observable behaviors instead of the elusive
mind. They used classical conditioning experiments to formulate the
Stimulus-Response (S-R) explanation of human behavior. Both Pavlov
and Watson felt that behavior could be best understood in terms od S-R.
A stimulus elicits a response. They concentrated mainly on the impact of
the stimulus and felt that learning occurred when the S-R connection
was made.

Modern behaviorism marks its beginnings with the work of B.F. Skinner.
He felt that the early behaviorists helped explain respondent behaviors
(those behaviors elicited by stimuli) but not the more complex operant
behaviors. In other words, S-R approach helped explain physical
reflexes; for example, when stuck by a pin (S), the person will flinch (R),
or when tapped below the kneecap (S), the person will extend the lower
leg (R). On the other hand, Skinner found through his operant
conditioning experiments, that the consequences of a responses could
better explain most behaviors than eliciting stimuli could. He emphasized
the importance of the response-stimulus (R-S) relationship. The
organism has to operate on the environment in order to receive the
desirable consequences. The preceding stimulus does not cause the
behavior in operant conditioning ; it serves as a cue to emit the behavior.
According to Skinner, behavior is a function of its consequences.

It is important to note that behavioristic approach is based on

observable behavior and environmental variables (which are also
observable).

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3. Social Cognitive Framework :

Social learning theory takes the position that behavior can best be
explained in terms of a continuous reciprocal interaction among
1. Cognitive,
2. Behavioral, and
3. Environmental determinants.

The person and the environmental situation do not function as

independent units but, in conjunction with behavior itself, reciprocally
interact to determine behavior. It means that cognitive variables and
environmental variables are relevant, but the experiences generated by
previous behavior also partly determine what a person becomes and can
do, which, in turn, affects subsequently behavior. A persons cognition or
understanding changes according to the experience of consequences of
past behavior.

Albert Bandura developed social learning theory into the more

comprehensive social cognitive theory (SCT). Stajkovic and Luthans
have translated this SCT into the theoretical framework for
organizational behavior. Social cognitive theory recognizes the
importance of behaviorism’s contingent environmental consequences,
and also includes cognitive processes of self regulation. The social part
acknowledges the social origins of much of human thought and action
(what individual learns from society), whereas the cognitive portion
recognizes the influential contribution of thought processes to human
motivation, attitudes, and action. In social cognitive theoretical
framework, organizational participants are at the same time both

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products and producers of their personality, respective environments,
and behaviors.

Five Basic Human Capabilities :

Bandura identified five basic human capabilities as a part of SCT.
1. Symbolizing: People process visual experiences into cognitive
models.

2. Forethought: Employees plan their actions.

3. Observational: Employees learn by observing the performance of

the referent group (peers, supervisors and high performers) and the
consequences of their actions.

4. Self-regulatory: Employees self regulate their actions by setting

internal standards (aspired level of performance).

5. Self-reflective: Employees reflect back on their actions (how did I

do?) and perceptually determine how they believe then can
successfully accomplish the task in the future given the context .
This is all about social cognitive framework in organisational behavior.

Limitations of Organizational Behavior

1. The subject of OB has not contributed to improved interpersonal

relations in organizational settings. Jealousies, leg-pulling, back-
stabbing, harassment and inequalities in rewards go side by side
with nice lectures, training programmes, discussions, smiles, and
assurances etc.

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2. Organizational behavior will not totally abolish conflict and
frustration, it can only reduce them. It is a means to improve, not an
absolute answer to problems.
3. OB is selfish and exploitative. It serves only the interest of the
management.
4. Though the subject OB helps an individual understand human
behavior better only in the workplace, he or she may be failure on
the domestic front. People who have a through grounding of
behavioral disciplines have sometimes proved to be total wrecks
in their lives.
5. Behavioral Bias is a condition which is a reflection of tunnel vision,
in which people have narrow viewpoints as if they were looking
through a tunnel. They see only the tiny view at the other end of the
tunnel while missing the broader landscape. Following the
behavioral bias, people who lack system understanding may
develop a behavioral bias, which leads them to develop a narrow
viewpoint that emphasizes employee satisfaction while overlooking
the broader system of the organization in relation to all its
stakeholders.
6. Overemphasis on an organizational behavior practice may produce
negative results, as indicated by the Law of Diminishing Returns.
In economics, the law of diminishing returns refers to a declining
effort of extra outputs when more of a desirable input is added to
an economic situation. The law of diminishing returns in
organizational behavior works in a similar way. It states that at
some point, increases of a desirable practice produce declining
returns, eventually zero returns, and then negative returns as more
increases are added. More of a good thing is not necessarily good.

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7. A significant concern about organizational behavior is that its
knowledge and techniques can be used to manipulate people
unethically as well as to help them develop their potential. People
who lack ethical values could use people in unethical ways.

Questions :
1. What is organizational behavior?
2. Discuss the nature, scope and importance of OB.
3. Briefly explain the features of OB.
4. Why do we have to study OB?
5. Discuss the limitations of OB.
6. Explain the relationship between organizational behavior and the
individual.
7. Explain the historical evolution of organizational behavior.
8. Explain the contributions of F. W. Taylor to the development of
management thought.
9. Who is the father of Scientific Management?
10. What is functional foremanship?
11. What is differential piece rate system?
12. What are the major contributions of Hawthorne experiments?
13. Explain the contributions of human relations movement.
14. What is cognitive framework of OB?
15. Who is the pioneer of cognitive framework of OB?
16. What is behavioristic framework of OB?
17. The pioneers of behavioristic framework of OB are -----------
18. What is social cognitive framework of OB?

********************

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References :
Books :
1. Organisational Behaviour By Stephen P. Robbins, Timothy A.
Judge, and Seema Sanghi, Pearson Publisher.
2. Organisational Behaviour By Fred Luthans, Mc- Graw Hill.
3. Organisational Behaviour: Human Behaviour at Work, By John W.
Newstrom, Tata Mc- Graw Hill.
4. Organisational Behaviour: Text, Cases, & Games By K.
Aswathappa, Himalaya Publishing House.
5. Organisational Behaviour By V. S. P. Rao, Excel Books.
6. Understanding Organisational Behaviour By Udai Pareek &
Sushama Khanna, Oxford University Press.
7. Organisation Theory and Behaviour By Sashi K. Gupta & Rosy
Joshi, Kalyani Publisher.
8. Organisational Behaviour : Text and Cases By Uma Sekharan,
Tata Mc - Graw Hill.
9. Organisational Behaviour By S. S. Khanka, Sultan Chand and
Company Limited.
10. Organisation Theory and Behaviour By V. S. P. Rao & P. S.
Narayana, Konark Publishers Private Limited.

Web resources :
1. https://museum-madness.blogspot.com/2011/12/organizational-
behavior-theoretical.html
2. https://www.slideshare.net/doranegoda/organizational-behavior-
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