MODULE 1

UNDERSTANDING ORGANIZATIONAL BEHAVIOR

References:

1) Organizational Behavior, Stephen P. Robbins, Timothi A. Judge and Seema Sanghi, 12th ed,
Prentice Hall India.
2) Organizational behavior-Human behavior at work by John W Newstrom,

12th edition,

McGrawHill
3) Organizational behavior and management by Ivancevich, Konopaske and Matteson 7th edition,
Tata McGrawHill
4) Organisational Behavior by Steven L Mc Shane Mary Ann Von Glinow Radha R Sharma Tata
McGrawHill
5) Organizational behavior by Don Hellriegel; John W. Slocum; Richard W. Woodman-8th edition,
Thomson South-Western
6) Organization Behavior by Fred Luthans
7) Organizational Behavior: Human Behavior at Work by John W. Newstrom and Keith A.Davis

Prepared By

Ruchi Tyagi
(PhD, MBA, MJMC)
Assistant Professor (SG)
CoMES UPES, Dehradun
Email: rtyagi@ddn.upes.ac.in

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ORGANIZATIONAL BEHAVIOR
UNIT 1
TUTORIAL NOTES : UNDERSTANDING ORGANIZATIONAL BEHAVIOR

NOTES OUTLINE

Definition and Nature of Organizational Behavior

The Concepts Connected with Organizational Behavior

Contributing Disciplines to the Organizational Behavior

Challenges for Organizational Behavior.

Basic Approaches of Organizational Behavior

Elements of Organizational Behavior

Models of Organizational Behavior

Limitations of Organizational Behavior

INTRODUCTION

Organization behavior is the study of knowledge and applications about how people as individuals and
group behave in different organizations.

Organizational behavior is understanding, predicting and

managing Human behavior in Organizations.

Organizational Behavior is Studying, Predicting and

Managing human behavior caused by individuals, groups and structures towards the requirements of
organizational strategies.

DEFINITION
According to Robbins: It is the field of study that investigates the impact that individuals, groups and
structures have on behavior within an organization for the purpose of applying such knowledge towards
improving organizations effectiveness.

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According to Davis: It is study and application of knowledge as to how people act or behave within an
organization. It is a human tool for human benefit. It applies broadly to the behavior of people in all types
of organizations, such as; business, government, school, and services etc.
NATURE (According to Fred Luthans)
a) Organization Behavior is directly concerned with the understanding, prediction and control of
human behavior in an organization.
b) It is the study of individual behavior and group dynamics in an organization.
c) It is the study and application of how employees behave in different organizations.
d) It is the study of human behavior attitudes and performance in an organization.
e) It helps people to attain the competencies needed to become effective employees, team leaders or
managers.
CONCEPT
Organizational Behavior is based on few basic concepts which deal respectively with the nature of people
and an organization, which suggest that the organizations and people reach their desired goal while
working with organization and at the same time organizations need people to establish their
organizational objectives.
The Nature of the People
1. Individual Differences
2. A better and whole person
3. Caused Behavior
(Motivation and Difference in
Behavior)
4. Value of the person or
human dignity

The Nature of Organization

1. Social System
2. Human Ethics

Mutual Interest

Holistic Concept
Figure 1: ORGANISATIONAL BEHAVIOR CONCEPT WITH ASSUMPTIONS

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The Nature of the People - With regard to people the following are the basic assumptions :
1) Individual Differences:a) No two individuals are alike.
b) No two individuals encounter the same situations and have same experience(s).

What Management should do?

a) The management can enhance motivation by dealing with them separately.
b) O.B. treats them individually and considers individual differences because it is people who take
responsibility and do decision making in an organization.
2) Better and Whole Person:An individual is not only appointed in an organization just because of academic qualifications but other
factors like: background, aptitude, stress, handling capacity, attitude etc. are also considered.
What Management should do?
Keep the organization like family affair so that an employee can become a better person.
3) Difference in Behavior:-The differences in the behavior of the employees is due to some causes
and do not take place at random.
The Nature of Organization:1) Human Ethics:a) Respect for the People: People in an organization should be treated with respect and dignity.
b) Recognition: Every job, whether big or small, when performed properly should be respected and
recognized equally.
2) Social System:a) Organizations are social systems working in a dynamic environment, where all the parts of the
system are inter-dependent. All activities are carried out by social and psychological laws.

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b) Both formal and informal systems work in an organization.

c) People behavior is influenced by their own drives and by the group to which they belong.
FEATURES
1. It is the study of factors that affect how individuals and groups act in organization and how
organization manages their environment.
2. It is the study of How and Why of the behavior.
3. It is the study of individuals in an organization.
4. It is the study of group and organization processes.
5. It is the study of inter-group relations and the organization context (organization culture and
organization structure)
6. It is a study of psychosocial, interpersonal, behavioral dynamic in an organization. It represents
behavioral approach to management.
7. It has a multi-disciplinary approach, as it is influenced by behavioral science and social sciences.
8. It is a science, as it relies upon scientific methods to build, evaluate and modify theories about
behavior in organizations.
OBJECTIVES
1. To see how employees behave in difference conditions.
2. It allows managers to establish human behavior at work.
3. To understand the cause(s) as to why people behave in their own way.
4. Managers can predict the future behavior of different persons by observing their activities.
5. To control and develop human activities as the manager is responsible for the performance of his
subordinates.
6. Managers provide skill development and group effort to increase productivity and enhance the
employee behavior.
NEEDS
1. To understand, analyze and describe behavior in organization.
2. To improve, enhance or change work behavior so that individuals, groups and finally the whole
organization can achieve its goals.
3. To help people to attain the competencies to become effective employees.
4. To understand the organizational factors that influence work.
5. To understand how the work environment shapes organizational performances.
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BASES OF ORGANIZATIONAL BEHAVIOR

1) Psychology: The science or study of individual human behavior

2) Sociology: The study of group human behavior
3) Social Psychology: Studies influences of people on one another
4) Anthropology: Study of the human race, and culture
5) Political Science: Behavior of individuals in political environment.

FIGURE 2: MULTI DISCIPLINARY BASES OF ORGANIZATIONAL BEHAVIOR

Source: organizational behavior (Robbins Judge and Sanghi p.39)
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BASIC APPROACHES OF OB
1. Human Resource Approach/ Supportive Approach:

People are the most important resource in an enterprise

They should be developing to reach higher levels of creativity and competence for success of the

enterprise.

It is also called the supportive approach as the managerial role is changed from control of

employees to support of employees.

2. Situational Approach

It predicts , the method which works well in one situation may fail in another.

Different situations have different impact.

A manager has to use his skills to find out which method is most suited for a particular situation at
that time.

It gives more importance to the analysis of each situation before taking any action on it. Thus, it is
most systematic and research based approach.

3. Productive Approach

The effectiveness of an organization depends upon its productivity.

It also shows the mangers efficiency in utilizing his resources

Productivity not only tackles the economic input and output but human and social values also.

4. Systems Approach

It views the organization as a united and inter-related system.

Thus, managers treat the organization as a whole or one group.

It emphasizes that the activity of any department of the organization affects other departments.

Everybody is concerned and responsible in the system, especially the managers who make
decisions for everyday activities.

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Managers use organizations behavior to accomplish individual, social and organizational goals,
for which they build and sustain the organizational culture to motivate and use talents of the
people.

Supportive
Approach

Productive
Approach

Basic
Approac
hes of
O.B

Situational
Approach

Systems
Approach

FIGURE 3: BASIC APPROACHES OF ORGANIZATIONAL BEHAVIOR

ELEMENTS OF OB
People

Environment

Environment

Structure

Technology
Environment

FIGURE 4: COMPONENTS OF ORGANIZATIONAL BEHAVIOR

The four elements of O.B are:1.
2.
3.
4.

Structure
People
Technology
Environment

Of the enterprise or organization these elements are influenced by the external environment and further
they are influenced by it. All these four elements have interaction with each other.
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1) People:
People from the internal social system of the organization.
People form groups which can be small/large and formal/informal
Groups are dynamic as they are formed, changed and disbanded (adjourned)
Organization exists to serve people, rather than to achieve its objectives.
Organization exists to serve people, rather than people existing to serve the organization.
2) Structure:
A formal structure is a form in an organization to accomplish activities.
The structure defines the formal relationship of people in organization.
These are different types of people doing different work, but are needed to be coordinated
effectively.
This will create the necessity for cooperation, negotiation and decision making.
3) Technology:
Technology provides resources by which people work and perform their task well.
The technology used has significant influence on working relationship, it has cause as well as
benefits.
4) Environment:(Complexity) Simple

(Volatility) Stable

(Capacity)

abundant

Complex
Dynamic

FIGURE 5: THE THREE DIMENSIONS OF BUSINESS ENVIRONMENT

All enterprises work within internal and external environment which influences the attitude working
conditions and competitions with other organization.

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LIMITATIONS OF O.B
1.

It has not contributed much regarding improving industrial relations as the workers have not
refrained from strikes, layouts, gheraos, even after many orientation programs.

2.

It is said that OB is descriptive about already affected behavior but it is not able to avoid its
reoccurrence.

3.

Difference in deed and action. For example- participative management, open role policies.

4.

It simply serves the interest of management by emphasizing motivation and productivity level.

WHY THEORIES FAIL?

1. There is no one size fit all .
2. Theories when applied practically usually fail as no two situations are alike.
3. Generally, theories are meant for applying collectively to a group of people, hence it may or may
not affect the individuals.
4. Understanding and practical implication of theory is subject to management and individual
experiences, approach and many allied factors.

CHALLENGES FOR OB
1) Responding to Globalization
o

Increased foreign assignments

Working with People from different cultures

Coping with anti-capitalism backlash.

Overseeing movement of jobs to countries with low- cost labor

Managing people during the war on terror

2) Managing workforce Diversity

o

Embracing diversity

Changing demographics

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3) Improving quality and productivity

4) Improving customer service
5) Stimulating innovation and changes
6) Working in networked organizations

7) Creating a positive work environment

8) Improving ethical behavior
REINFORCING INPUTS
India's large work force has been stubborn in transition and over 90% of them is
inadequately trained (Money India 2010)
There is a huge challenge not for talent availability but dearth of the right quality of talent
(Anand Bhaskar, Founder and CEO Planet Ganges Consulting).
In the automotive sector leaders come from three countries- Japan, Korea and Germany
and we need to scale up skills of our workforce to compete with them (Dr. D. Kovaichelvan,
Senior VP HR,TVS Motor Company)
The integral skills that are required in IT are lacking in the system and to add pain to that,
technology is also changing at a very high pace (Ms. Sunita R. Cherian -V.P and Global Head,
Wipro Ltd).
(Source Times of India HT Shine Conclave ,March 2016)
Challenge: Young professionals are hopping, leading to low retention rate of employees.
Examples of Practices undertaken to ensure better retention:
A choice of working in over 170 offices across 40 countries in a
variety of areas.
Paternity leave for adoption of a girl child
Tata Consulting Services(TCS)
Discounts on group parties
(http://www.asmgroup.edu.in/incon/publication/incon13hr-010.pdf)
Identification of potential talented staff
Alternative stock options
ICICI Bank
Quicker promotion
(https://www.scribd.com/presentation/39871472/StudyAbout-Hr-Practices-of-Icici-Bank)

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Culture change valuing innovation and talent over age and

experience
Institutionalizing a practice called reverse mentoring where
young people are given opportunities of mentoring their
seniors
(http://www.business(standard.com/article/management/reverse-mentoring112090300058_1.html)
Wings Within program existing employees get a chance to
quit their current job role and join a different firm within
wipro .
(https://www.scribd.com/doc/317065344/HR-Practices-ofWipro)

Mahindra & Co

Wipro

MODELS OF ORGANIZATION BEHAVIOR

There are four models described by Davis for organizational behavior .These are: Autocratic, Custodial,
Supportive and Collegial. Different thinkers have forwarded different models. For example: MC. Gregor
gave theory- X, theory- Y people.
S. No.
1

Base and Orientation

Bases of Model

Autocratic
Power

Custodial

Supportive

Economic

Support through

Resources

Leadership

Collegial
Partnership

Managerial Orientation

Authority

Money

Support

Teamwork

Employee Orientation

Obedience

Security and

Job performance

Responsible

Benefits
4

Employee Psychological

Dependence

Dependence on

result

on Boss

Organization

Employee needs met

Subsistence

Security

Behavior
Participation

Self-Discipline

Status and Recognition

SelfActualization

Performance Result

Minimum

Positive

Awakened Drives

cooperation

Moderate
Enthusiasm

FIGURE 6: MODELS OF ORGANISATION BEHAVIOR

1. Autocratic Model:In it the manager has power and authority to command people.
Whatever management thinks is best for the organization, the employees have to follow its
instructions.
The employees are ordered and directed to the assigned work.
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They are paid minimum wages for their minimum performance.

They feel sense of insecurity and frustration as they cannot put across any grievances to their
boss.
In it the communication is one way i.e. downward communication.

2. Custodial Model:- It comes into existence due to:

Employees insecurity, frustration and even their aggression.
Unwillingness to perform as per the laid down norms.
It is based on the economic resources of the organization rather than on the personal dependence
on boss.
Managerial Orientation moves towards paying for employee benefits.
Employees feel secure as they were provided with their benefits.
In it management decides what benefits and rewards should be given to the employees.
It only emphasises on material rewards, security and dependence on organization.

3. Supportive Model:It depends on managerial leadership neglecting the previous base of power and money.
It helps employees to grow and help the organization to which they are capable of.
The employee enjoys participation and work involvement in the enterprise.
They are motivated for better performance due to recognition.
It is based on human aspects rather than the economic resources.

4. Collegial Model:It is an extension of supportive model. The term collegial means a group of persons having a
common purpose.
It is a team work for job freedom.
It provides a feeling of partnership. Managers work is of a joint contribution rather than bossism
Employees feel responsibility and try to produce quality work.
Psychologically the employees tend to become self-disciplined
The employees are self-motivated.

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Different models can be adopted as per the requirement of the organization as no single model can work
in every condition. Further, changing human behavior in new social dimensions also demands flexible
organizational models.
Review Questions

Define Organization behavior.

Identify the important system components of an organization.
What is Organizational Behavior? Discuss its nature and significance?
Describe the factors that affect organizations competing in the global economy.
Identify four action steps for responding positively in times of change.
Evaluate the opportunities that Change creates for organizational behavior.

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