What Is Organization Behaviour

Content of the chapter…

1) Meaning2) Definition3) Nature4) Characteristics5) Relative contribution of disciplines on OB 6) Significance of OB 7) Approaches of OB 8) Challenges9) Do Successful Organizations Put People First?

Meaning

OB is nothing more than developing our understanding and development of people skill. A multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics.OB is Study of human behavior in organizations. There are two words-

1- Organization 2- Behaviour

An organization is a collection of people working together in a division of labor to achieve a common purpose.

The study of Organizational Behaviour (OB) is very interesting and challenging too. It is related to individuals, group of people working together in teams. The study of organizational behaviour relates to the expected behaviour of an individual in the organization. No two individuals are likely to behave in the same manner in a particular work situation. It is the predictability of a manager about the expected behaviour of an individual.

OB is concerned with the study of what people do in an organization (social system) and how that behavior affects the performance of the organization

• Individual Behavior• Individual and group behavior• Organizational structure

DEFINITIONS

According to Luthans “OB is directly concerned with the understanding, predicting and controlling of human behavior in organizations.” According to LM PrasadThe study and application of knowledge about human behaviour related to other elements of an organization such as structure, technology and social systems

Stephen P RobinsOrganizational behaviour as a systematic study of the actions and attitudes that people exhibit within organizations.

Roman J. Alday “O.B as a branch of the social science that seeks to build theories that can be applied to predicting understanding and controlling behavior in work organizations”

“Organizational behaviour is a field of study that investigates the impact that individuals, groups and organizational structure have on behaviour within the organization, for the purpose of applying such knowledge towards improving an organizational effectiveness”.

Nature of OB

1) A separate field of study and not a discipline onlyIt has assumed the status of a distinct field of study. It is a part of general management. It represents behavioral approach to management.

2) An inter-disciplinary approachThe OB is heavily influenced by several other behavioral sciences and social sciences like psychology, Sociology and anthropology. O.B. has psychological foundations. The concept like learning, perception, attitude, motivation etc is borrowed from psychology, sociology and anthropology.

3) A Normative Science Organizational behaviour is a normative science. A normative science prescribes how the various findings of researches can be applied to get organizational results, which are acceptable to the society. Thus, what is acceptable by the society or individuals engaged in an organization is a matter of values of the society and people concerned.

4) A Science and ArtOrganization behavior is both art and science. It is considered as art because it contains knowledge about behavior of individuals. It is considered as science because it involves application of science.

5) Humanistic and Optimistic ApproachOrganizational behaviour focuses the attention on people from humanistic point of view. It is based on the belief that needs and motivation of people are of high' concern. Further, there is optimism about the innate potential of man to be independent, creative, predictive and capable of contributing positively to the objectives of the organization.

6) Oriented towards Organizational ObjectivesOrganizational behaviour is oriented towards organizational objectives. In fact, organizational behaviour tries to integrate both individual and organizational objectives so that both are achieved simultaneously.

7) A Total System ApproachAn individual's behaviour can be analyzed keeping in view his psychological framework, interpersonal-orientation, group influence and social and cultural factors; Thus, individual's nature is quite complex and organizational behaviour by applying systems approach tries to find solutions for this complexity..

Characteristics of OB

1. Large Size It employ Hundreds and thousands of employees.

2. Human Resources 3. Complexity

It involves huge investment and complicated technology, their management and operation is a complex affair.

4. Co-ordination5. Pattern Behavior

There is a system of working in all organization like hierarchical levels, a chain of command, rules and procedures.

6. Discipline 7. Dynamic

Organization behavior is dynamic rather than static. It essence is reflected in change in behavior of individuals in organization

Contributing Fields to Organizational Behaviour

Psychology: Psychology is an applied science, which attempts to explain human behaviour in a particular situation and predicts actions of individuals. Psychologists have been able to modify individual behaviour largely with the help of various studies. It has contributed towards various theories on learning, motivation, personality, training and development, theories on individual decision making, leadership, job satisfaction, performance appraisal, attitude, ego state, job design, work stress and conflict management. Studies of these theories can improve personal skills, bring change in attitude and develop positive approach to organizational systems. Various psychological tests are conducted in the organizations for selection of employees, measuring personality attributes and aptitude. Various other dimensions of human personality are also measured. These instruments are scientific in nature and have been finalized after a great deal of research.

Sociology: Science of Sociology studies the impact of culture on group behaviour and has contributed to a large extent to the field of group-dynamics, roles that individual plays in the organization, communication, norms, status, power, conflict management, formal organization theory, group processes and group decision-making.

Political science: Political science has contributed to the field of Organizational behaviour. Stability of government at national level is one major factor for promotion of international business, financial investments, expansion and employment. Various government rules and

regulations play a very decisive role in growth of the organization. All organizations have to abide by the rules of the government of the day.

Social psychology: Working organizations are formal assembly of people who are assigned specific jobs and play a vital role in formulating human behaviour. It is a subject where concept of psychology and sociology are blend to achieve better human behaviour in organization. The field has contributed to manage change, group decision-making, communication and ability of people in the organization, to maintain social norms.

Anthropology: It is a field of study relating to human activities in various cultural and environmental frameworks. It understands difference in behaviour based on value system of different cultures of various countries. The study is more relevant to organizational behaviour today due to globalization, mergers and acquisitions of various industries. The advent of the 21st century has created a situation wherein cross-cultural people will have to work in one particular industry. Managers will have to deal with individuals and groups belonging to different ethnic cultures and exercise adequate control or even channelizebehaviour in the desired direction by appropriately manipulating various cultural factors.Organization behaviour has used the studies on comparative attitudes and cross-cultural transactions. Environment studies conducted by the field of anthropology aims to understand organizational human behaviour so that acquisitions and mergers are smooth.

Significance of OB

• Managing Workplace Diversity- Work force diversity means that organizations are becoming more heterogeneous in terms of gender, which varies from the so-called norm. It includes women, south Indians, Benalies, Punjabies , physically disabled, elderly etc.

• Improving ethical behavior After understanding the mechanism of human behaviour, managers are required to control and direct the behaviour so that it conforms to the standards required for achieving the organisational objectives. Thus, managers are required to control and direct the behaviour at all levels of individual interaction. Therefore, organisational behaviour helps managers in controlling and directing in different areas such as use of power and sanction, leadership, communication and building organisational climate favourable for better interaction.

• In define authority, power and status of an employee -The behaviors can be controlled and directed by the use of power and sanction, which are formally defined by the organization. Power is referred to as the capacity of an individual to take certain action and may be utilized in many ways. Organizational

behaviour explains how various means of power and sanction can ,be utilized so that both organizational and individual objectives are achieved simultaneously.

• In making communication- Communication helps people to come in contact with each other. To achieve organisational objectives, the communication must be effective. The communication process and its work in inter-personal dynamics have been evaluated by organisational behaviour.

• Essential to effectively strategy implementation-Organizations, as dynamic entities are characterized by pervasive changes. Organizations have to adapt themselves to the environmental changes by making suitable, internal arrangements such as convincing employees who normally have the tendency of resisting any changes.

• It contains a body of theory, research, application associated when a growing concern for in work place. Its study helps in understanding human behavior. The study of theories and research experiences of organization facilitates manager for creative thinking to solve human problems in organizations

• Information Technology gives power and information to the one who can use it best.

• The environment is changing rapidly making adaptation and change crucial to survival- organizations as closed systems isn’t a valid model.

• Improving Quality and Productivity

• In making effective organizational structure

• In making group

• In motivation

• In organizational development

Approaches of OB

1. Classical Approach

Scientific Management Approach

Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century. This theory supported the use of certain steps in scientifically studying each element of a job, selecting and training the best workers for the job arid making sure that the workers follow the prescribed method of

doing the job. It provided a scientific rationale for job specialization and mass production. His assumption was that employees are motivated largely by money. To increase the output, Taylor advised managers to pay monetary incentives to efficient workers.

Yet, his theory was criticized by many employers and workers. Workers objected to the pressure of work as being harder and faster. Critics worried that the methods took the humanity out of labor, reducing workers to machines responding to management incentives. Therefore, Taylor's view is now considered inadequate and narrow due to the points given by the critics.

Administrative Approach

a) Bureaucratic Approach

While scientific management was focusing on the interaction between workers and the task, me researchers were studying how to structure the organization more effectively. Instead of trying to make each worker more efficient, classical organization theory sought the most effective overall organizational structure for workers and managers.

The theory's most prominent advocate, Max Weber, proposed a 'bureaucratic form' of structure, which he thought would work for all organizations. Weber's idea! bureaucracy was , logical, rational and efficient. He made the naive assumption that one structure would work best for all organizations.

b) Henri Fayol, developed a set of 14 principles:

1. Division of Labor

2. Authority and Responsibility

3. Unity of Command

4. Line of Authority

5. Centralization

6. Unity of Direction

7. Equity

8. Order

9. Initiative

10. Discipline

11. Remuneration of Personnel

12. Stability of Tenure

13. General interest over individual interest

14. Esprit de corps

Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized the behavioral side of management. However, they did not emphasize the human dimensions. Although there were varied and complex reasons for the emerging importance of behavioral approach to management, it is generally recognized that the Hawthorne studies mark the historical roots for the field of organizational behaviour.

Neo – classical Approach

Hawthorne Studies

Even, as Taylor and Weber brought attention with their rational, logical approaches to more efficient productivity, their views were criticized on the ground that both approaches ignored worker's humanity.

The real beginning of applied research in the area of organizational behaviour started with Hawthorne Experiments. In 1924, a group of professors began an enquiry into the human aspects of work and working conditions at the Hawthorne plant of Western Electric Company, Chicago. The findings of these studies were given a new name 'human relations' the studies brought out a number of findings relevant to understanding human behaviour at work. The Human element in the workplace was considerably more important. The workers are influenced by social factors and the behaviour of the individual worker is determined by the group.

Hawthorne studies have been criticized for their research methods and conclusions drawn. But their impact on the emerging field of organizational behaviour was dramatic. They helped usher in a more humanity centered approach to work.

MODERN APPROACH TO ORGANIZATIONAL BEHAVIOURHuman Resources Approach

The human resources approach is concerned with the growth and development of people towards higher levels of competency, creativity and fulfillment, because people are the central resource in any organization. This approach help employees become better in terms of work and responsibility and then it tries to create a climate in which they can contribute to the best of their improved abilities. This approach is also known as 'supportive approach' because the manager's primary role changes from control of employees to providing an active support for their growth and performance.

Contingency Approach

A contingency approach to organizational behaviour implies that different situations require different behavioral practices for effectiveness instead of following a traditional approach for all situations. Each situation must be analyzed carefully to determine the significant variables that exist in order to establish the more effective practices. The strength of this approach is that it encourages analysis of each situation prior to action. Thus, it helps to use all the current knowledge about people in the organization in the most appropriate manner.

Productivity Approach

Productivity is a ratio that compares units of output with units of input. It is often measured in terms of economic inputs and outputs. Productivity is considered to be improved, if more outputs can be produced from the same amount of inputs. But besides economic inputs and outputs, human and social inputs and outputs also arc important.

Systems Approach

A system is an interrelated part of an organization or a society that interacts with everyone related to that organization or society and functions as a whole. Within the organization 'people' employ 'technology' in performing the 'task' that they are responsible for, while the 'structure' of the organization serves as a basis for co-ordinating all their different activities. The systems view emphasizes the interdependence of each of these elements within the organization, if the organization as a whole is to function effectively. The other key aspect of the systems view of organization is its emphasis on the interaction between the organization and its broader environment,, which consists of social, economic, cultural and political environment within which they operate.

Organizations arc dependent upon their surrounding environment in two main ways:

First, the organization requires 'inputs' from the environment in the form of raw material, people, money, ideas and so on. The organization itself can be thought of as performing certain 'transformation' processes, on its inputs in order to create outputs in the form of products or services.

Secondly, the organization depends on environment such as, public to accept its output. The systems view of organization thus emphasizes on the key interdependencies that organizations must manage. Within themselves the organizations must trade off the interdependencies among people, tasks, technology and structure in order to perform their transformation processes effectively and efficiently. Organizations must also recognize their interdependence with the broader environments within which they exist.

Challenges

• Challenges at the Individual Level– Job Satisfaction– Empowerment– Behaving Ethically

• Challenges at the Group Level– Working With Others– Workforce Diversity

Workforce Diversity

An important watchword in the twenty-first century is workforce diversity—

The presence of differences based on gender, race and ethnicity, age, and able bodied ness. Success in the new workplace requires a set of skills for working successfully with a broad mix of People from different racial and ethnic backgrounds, of different ages and genders, and of different domestic and national cultures. Valuing diversity is an OB theme. It refers to managing and working with others in full respect for their individual differences. Interpersonal sensitivity and cultural respect are indispensable to valuing diversity. Even though valuing diversity is emphasized in books and classrooms, much remains to be accomplished. A glass ceiling effect acts as a hidden barrier limiting the career advancement of minorities and women in some situations. In a complex organizational environment, different individuals with different educational backgrounds, races & different professional/working skills work together. This leads to workforce diversity and OB needs to manage it so that the above diversity does not offer obstacles towards growth of organization.

Challenges at the Organizational Level1- Productivity- A performance measure including effectiveness and efficiency

2- Developing Effective Employees Absenteeism- Failure to report to work Turnover - Voluntary and involuntary permanent withdrawal from the organization Organizational Citizenship- Discretionary behaviour that is not part of an

employee’s formal job requirements, but is helpful to the organization3-Competition From the Global Environment

4- Managing and Working in a Global Village

Do Successful Organizations Put People First?

Pro side-

Yes they do because organizations are social systems and the care and feeding of people and their relationships is crucial to the organizations being able to be effective

Con side

No, most organizations are social systems secondarily. Their first need is to be efficient and to make money. Managers need to be plugged into the outside environment but minimizing resources such as people is crucial to the success of the enterprise.

Text Questions

Q. 1. Define organizational bevaiour. What are various fields that have contributed to the field of organizational behaviour? Explain their contributions.Q. 2. Explain the field of organizational behaviour. Why the study is challenging?Q.3 Define organizational behaviour. What are the approaches of OB?Q.4 Define OB. Describe the nature and characteristics of OB. Why the study of OB is necessary in the field of Management?Q.5 Explain the field of OB. Why study is challenging? Do Successful Organization put people first?