MBA I SEM

Bangalore University
Prof. A. Asif Ali
 Introduction to Organizational
Behavior
Why Study Organizational Behavior
TOPICS
Benefits of studying OB

Models of Organizational Behavior

 Organization : An organized group of
people with a purpose, such as a
business or government department.

Organizational Behavior: Conduct: the way in which

one acts or conducts oneself,
Behavior especially towards others

Organizational behavior: It is "the

study of human behavior in
organizational settings, the interface
between human behavior and the
organization, and the organization
itself".
People Are an
Organization’s Most
Important Assets

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 Why Do We Study OB?
To learn about ourselves and others
To understand many organizations we
encounter work.
To become familiar with team work
To help us think about the people
issues faced by managers and
entrepreneurs
Introduction
Organization are as old as human race and
as time passed people recognized that
they could collectively satisfy their needs
and wants in a much effective and efficient
manner.
Every organization must satisfy the stake
of its stakeholders.
OB is a grouping of different responses to
external and internal stimuli by people
either as an individual or as a group of
people.
Meaning & Definition of Organization
“ It is a Process of systematic and logical
grouping of activities, delegation of authority and
responsibility and establishing working
relationships that will enable both the company
and employee to realise their mutual objectives”
An organization is a collection of people who
work together to achieve individual and
organizational goals.
According to Mooney and Reily “ Organization is
the form of every human association for the
attainment of a common purpose”
Definition of Organizational
Behaviour
“ OB is the study and application of
knowledge of how people act or behave
within organization” – Keith Davis and
Newstrom
“Organizational as a systematic study of
the actions and attitudes that people
exhibit within the organizations” –
Stephens P. Robbins
Oganizational Behaviour

Insert Figure 1.1 here

Scope of Organizational Behaviour

It is the extent to which it can administer or control

the operations and activities of an organization.
Individual Behaviour (Study of individuals
personality, knowledge, outlook, inspiration and job
satisfaction) (Interaction with others in order to
study about them) ex: Personal Interview
Inter-Individual Behaviour (Communication
between the employees among themselves,
employees and their subordinates) ex: Meetings
Group Behaviour (formation of the organization,
group efforts etc.,) ex: rally, strike etc.
Characteristics
Goal-Oriented

Levels of analysis

Human tool

Satisfaction of employees need

A total systems approach

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Elements & Factors influencing OB
People
.Individuals
.Group

Environment
.Government Structure
.Competition .Jobs OB
.Social .Relationship

Technology
.Machinery
.Copm. hard & soft.

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Factors influencing OB
People
Structure
Hierarchy of Authority
Division of labour ( distribution of responsibility)
Span of control
Specialization
Standardization
Formulation
Centralization
Complexity
Technology
Long linked Technology (Assembly Process/Line)
Mediating Technology (Banks)
Intensive Technology (Hospitals)
Environment
Specific Environment (Suppliers, Customers, Competitors,
Governments, Agencies, employees, unions, political parties etc.)
General Environment ( Economic, politics, cultural, technological, social)
Levels of Analysis in OB

Organizational Level

Group Level

Individual
Level
 Individual Level
In individual level, organizational behavior
involves the study of learning, perception,
creativity, motivation, personality, turnover, task
performance, cooperative behavior, deviant
behavior, ethics, and cognition.
At this level of analysis, organizational behavior
draws heavily upon psychology, engineering,
and medicine.
A study of organizational behavior at the
individual level of analysis might focus on the
impact of different types of overhead lighting on
such factors as productivity and absenteeism.
 Group Level
At the group level of analysis, organizational
behaviour involves the study of group dynamics,
intra- and inter group conflict and cohesion,
leadership, power, norms, interpersonal
communication, networks, and roles.
At this level of analysis, organizational behaviour
draws upon the sociological and socio-
psychological sciences
A study of how different personality types correspond
to different leadership styles and levels of results
operates at the group level of analysis.
 Organizational Level

At the organization level of analysis, organizational

behavior involves the study of topics, such as,
organizational culture, organizational structure,
cultural diversity, inter-organizational cooperation
and conflict, change, technology, and external
environmental forces.
At this level of analysis, organizational behavior
draws upon anthropology and political science.
The study on organizational cultures, by William
Ouchi's classic Theory Z: How American Business
Can Meet the Japanese Challenge (1981) is
example of organizational behavior conducted at
the organization level of analysis.
Challenges and opportunities
A quick look at few dramatic changes
now taking place in organization
1.Old employee getting old
2.Corporate Downsizing
3.Temporary working employees
4.Global competition
5.War on terror
Challenges and Opportunities for OB
1. Globalization to Respond: Organizations are no longer constrained by national
borders, world become global village.

Increased foreign assignment: Transferred to your employer’s operating division in another

country, Once there, you’ll have to manage workforce, aspiration from employees, and
attitudes from those you are used to back home

Working with different people: Working with bosses, peers and other employees who were
born and raised in different culture, to work effectively with them you’ve to understand how
their culture, geographic and religion have shaped them.

Coping with Anti-capitalism backlash: “soak the rich” means fine should be charged with
respect of income you earn. Managers at global companies have come to realize that
economic values are not universally transferable, need to modify by managers to reflect
economic values in those countries they’re working.

Overseeing Movement of jobs to countries with low cost labor: In a global economy,
jobs tend to flow to places where lower cost provide business firms with a comparative
advantages

Managing people During the war on terror: An understanding of OB topics such as

emotions, motivation, communication and leadership can help managers to deal more
effectively with their employees’ fear about terrorism
Challenges and Opportunities for OB
Managing workforce diversity
The people in organization are becoming heterogeneous
demographically, Workforce diversity= whereas globalization
focuses on differences between people from different countries,
mix of people in terms of gender, age, race, and sexual
orientation.( Embracing diversity, Changing demographics,
Changing management philosophy, Recognizing and
responding to difference)
Improving Quality and productivity
Improving Customer service
Improving people skills
Challenges and Opportunities for OB
Stimulating innovation and change
Coping with Temporariness
Working in network organization
(Technology)
Helping employees Balance work-life
conflicts
Creating positive Work Environment
Improving Ethical Behavior
Major Workforce Diversity Categories

Gender
National
Disability Origin

Age
Non-Christian
Race

Domestic
Partners

E X H I B I T 1–4
Challenges Facing the Workplace
Organizational Level

• Productivity
• Developing Effective Employees
• Global Competition
• Managing in the Global Village

Group Level

• Working With Others

• Workforce Diversity Workplace

Individual Level

• Job Satisfaction
• Empowerment
• Behaving Ethically
 Basic OB Model
Organization systems level

Group level

Individual level
Independent Variables
Individual-Level Variables (Leadership, Power, Attitudes)
Group-Level Variables (Diversity, Groups, Teams, Conflict)
Organizational Systems-Level Variables (Culture, Structure, Design,
Change)

Dependent Variables
Productivity, Absenteeism, Turnover, Job Satisfaction Motivation,
Well-being, Safety, Effectiveness, Efficiency, Ethics

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OB MODEL
Challenges and Opportunities for OB (cont’d)

Improving Quality and Productivity

Quality management (QM)
Process reengineering
Responding to the Labor Shortage
Changing work force demographics
Fewer skilled laborers
Early retirements and older workers
Improving Customer Service
Increased expectation of service quality
Customer-responsive cultures
Today’s Challenges in the
Workplace
Challenges at the Individual Level
Job Satisfaction
Empowerment
Behaving Ethically
Challenges at the Group Level
Working With Others
Workforce Diversity

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Today’s Challenges in the
Workplace
Challenges at the Organizational Level
Productivity
Developing Effective Employees
○ Absenteeism
○ Turnover
○ Organizational Citizenship
Competition From the Global Environment
Managing and Working in a Global Village

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Contributions of Other Disciplines to OB
Psychology
Sociology
Social Psychology
Anthropology(study of societies to learn about human beings
and their activities)

Political Science
Technology
Management
Economics
Contributing Disciplines to the OB Field
Behavioural Contribution Unit of Output
science analysis
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Psychology Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Individual

Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Sociology

Formal organization theory Study of

Organizational technology Group Organizational
Organizational change Behaviour
Organizational culture

Behavioural change
Attitude change
Social psychology Communication
Group processes
Group decision making
Organization
Comparative values system
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational culture
Organizational environment

Conflict
Political science Intraorganizational politics
Power
Contributing Disciplines to the OB Field (cont..)
Technology Economics
Perception Motivation
Work Environment Decision Making
Communication Learning
Motivation
Team Work
Decision Making
Management
Decision Making
Leadership
Motivation
Communication
Organizational Structure
Predict the behavioural requirements of
Org strategies
Manage the behaviour towards the
strategic requirement
Emerging Issues in OB
Workforce Diversity
Changed Employee Expectation
Globalization
Improving productivity & Quality
Changing Demographics of Workforce
Emerging Trends in OB
Changing Workforce
Emerging Employment Relationship
Globalization
Knowledge Management
IT