module 6- organizational behaviour

8/4/2019 Module 6- Organizational Behaviour

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Organizational Behaviour

Module 6



Syllabus

� Organizational Behavior Introduction, definition,goals, elements

� Historical development of Organizational Behaviour

� Fundamental concepts

� Contributing disciplines to OB

� Models of OB

� Social systems and organizational culture

� International dimensions of organizational behaviour

� Limitations of Organizational behaviour,

� The future of OB.



Introduction

� Human beings depend on organization from

birth to death

� Most people neglect organizations, unless they

fail to deliver goods and services

� Need for effective organizations as they provide

goods and services at reasonable cost

� OB contributes for organizational effectiveness



OB Meaning

� Behaviour is a function of person and

environment

�

Different people different behaviour� Behaviour may be desirable or undesirable

� Managers have to manage both person and

environment in organizations to achievedesired goals



Contd..

� Organization is a set of people working

together to achieve shared goals

� OB is the study of human behaviour in

organizational settings

� OB offers tools and techniques to manage

behaviour in organization



Contd..

� So, OB is the study of human behaviour in an

organization environment, and applying the

knowledge derived from this study to improve

organizational effectiveness

� OB deals with behaviour of individuals and

groups within organizations and the

interaction between organizational members

and their external environment



Definition

� Stephen P Robbins, OB is a field of study that

investigates the impact that individuals, groups

and structure have on behaviour within

organizations for the purpose of applying suchknowledge towards improving an organizations

effectiveness

� It is the common body of knowledge whichstudies individuals, groups and effect of structure

on behaviour



Goals

� Describe behaviour : goal is to describesystematically how people behave undervariety of conditions. If this goal is achieved

managers can define behaviour of employeeseasily

�Understand : goal is to understand why peoplebehave as they do. It is to understand thereason behind those behaviours



Goals Contd..

� Predict: goal is to empower managers with a capacity to predict or anticipate employee/ people behaviour. Itis to anticipate which employee might be successful,who might be absent, who might cause problem etc.this helps managers to prepare concrete plans & takepreventive actions wherever necessary

� C ontrol: Goal is to control and develop the humanactivity at work. This is to minimize undesirablebehaviour and develop desirable behaviour in theorganization



Elements of OB

Elements of OB

Organization

structure,

technology

People, their

level of

satisfaction,

motivation,growth &

development

Co. culture,

leadership,

communication

Company

philosophy,

values, vision,goals

Note: Company philosophy can be the principles or foundations

Around Which company works



Historical Development of OB

� Koutilyas Arthashastra states that there was

systematic management of human resources

during 4th Century BC itself

� Minimum wage rate, incentive wage plan

concepts were included in Babylonian

civilization during 1800 BC

� Actual development of OB can be traced from

beginning of the 19th Century



Contd..

� Prior to 19th Century, condition of workers was

miserable

� Industry Revolution, which happened during 19th

Century benefitted employees in terms of

increased wages and reduced working hours

� Robert Owen, Andrew and J N Tata were the

pioneers in providing welfare facilities to workers� But they were criticized of following do-good-

approach



Contd.

� During Scientific Management Era, Taylor focusedon human resources at work, but he wanted torationalize everything & his sole aim is to getmore output from workers

� Failure of Scientific Management gave birth tohuman relations movement, which heavily emphasized on employee cooperation andmorale

� 3 contributing factors to human relationsmovement are; Great Depression, LabourMovement and Hawthorne Studies



Fundamental Concepts of OB

� Every discipline- social science or physical

science- have assumptions or principles

� Ex:

Financial Accounting one of the principlessays, for every debit there shall be a

corresponding credit

� Ex: Law of gravity is common everywhere



Contd..

� T here are differences between individuals

� A whole person

� Behaviour of an individual is caused

� An individual has dignity

� Organizations are social systems

� Mutuality of interest among organizational members

� Holistic organizational behaviour

� Need for management



Contd..

� First four are around people

� Next two are concerned with organizations

�Last two are combination of first fiveassumptions



Contd..Individual

differences

Whole person

Caused behaviour

Human dignity

Need for

management

Holistic approach

Mutuality of interests

Social systems

OB



1. Individual Differences:

There are differences between people. Be it in

intelligence, physique, personality or any other trait,they are different. This concept comes frompsychology

2. A whole person:

When an individual is appointed, his\her skill alone isnot hired, his\her social background, likes, dislikes arealso hired. A persons family life can not be separatedwith work life.

3. Caused behaviour:

Behaviour of an employee is caused, not random.Behind every behaviour, there will be a cause, reason.Management should find that cause if it wants tomanage the behaviour



4. Human dignity:

People have to be treated differently from otherfactors of production. People should be treated

with respect and dignity. It rejects the old idea of

using people as economic tools.

5. Organizations as social systems:

Organizational activities are governed by social

status, rules & regulations & psychological needs.

It implies that environment is dynamic. All partsare interdependent and subject to influence by

any other part.



6. Mutuality of interest:

It represents the statement organizations need people &people also need organizations. Organizations utilizepeople to achieve their goals. People see organizations tosatisf y their needs or desires.

7. Holistic organizational behaviour:

When first 6 concepts are placed together holistic conceptemerges. Interprets that people organization relationshipexpressed in terms of whole people, whole group, wholeorganization, & whole social system.

8. Need for management:

Knowledge derived from OB study will be utilized inimproving organizational effectiveness. And management uses this knowledge. While studying OB, managementneeds should be considered.



Contributing Disciplines to OB



OB ModelPersonality

Perception

Learning

Attitudes and

attributionMotivation

module 6- organizational behaviour

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