ORGANIZATIONAL BEHAVIOUR

Dr. Sunil Mishra
Associate Professor
OBJECTIVES
After studying this chapter,
you should be able to:

1. Define organizational behavior (OB).
2. Explain the value of the systematic study of
LEARNING

OB.
3. Identify the contributions made by major
behavioral science disciplines to OB.
4. Define OB Models.
5. List the major challenges and opportunities
for managers to use OB concepts.
 TOPICS TO BE COVERED

1. Define organizational behavior (OB).
2. Identify the primary behavioral disciplines contributing to
OB.
3. Describe the three goals of OB.
4. List the major challenges and opportunities for managers to
use OB concepts.
5. Discuss why workforce diversity has become an important
issue in management.
6. Discuss how a knowledge of OB can help managers stimulate
organizational innovation and change.
 Definition
• OB studies what people do in an
organization and how that
behavior affects the performance
of the organization.

• The study of what

people think, feel,
and do in and around
organizations.
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What is Organizational Behavior?

Insert Figure 1.1 here

 Organizational Behavior (OB)

• OB theories have widespread
applications
• Knowing these theories can help you to:
– Evaluate “solutions” proposed by
consultants and managers
– Solve new problems and adapt to new
situations
– Stay “current” in your field
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Goals of Organizational Behavior

• Explain, predict, and
control human behavior

The field of OB seeks to

replace intuitive explanations
with systematic study

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Topics in Studying and Understanding OB

The
Organization’s
Environment

Understanding Group Behavior

and Managing and
Individual Interpersonal
Behavior Influence

Change and
Organizational Organizational
Innovation
Processes Structure
Components of Organizational Behavior
Understanding 
organizational behavior 
requires studying

Part One ‐ Individuals in Organizations

Part Two ‐ Group and Team Processes

Part Three ‐ Organizational Processes
 Why Study Organizational Behavior?

• OB theories help you to make sense of the
workplace
– Question and rebuild your personal theories for work
– Important ‐‐ much of our time is in organizations
• OB provides knowledge/tools to work with others
– Helps you to get things done
• OB improves an organization’s financial health
 Implications for Managers

• OB helps with:
– Insights to improve people skills
– Valuing of workforce diversity
– Empowering people and creating a positive
work environment
– Dealing with labor shortages
– Coping in a world of temporariness
– Creating an ethically healthy work environment

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What other knowledge 
help us understand OB?

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Contributing  Disciplines
• Organizational behavior is an applied behavior
science that is built on contributions from a
number of behavior disciplines.
• the predominant areas :
– psychology,
– sociology,
– social psychology,
– anthropology,
– political science
 Contributions to the Study of
Organizational Behavior
Discipline Unit of Analysis Output

Psychology

Individual

Sociology

Organizational
Social Psychology Group
Behavior

Anthropology

Organization

Political Science
Contributing Disciplines to the OB Field
Psychology
The science that seeks to measure, explain, and
sometimes change the behavior of humans and other
animals.

E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB Field
Sociology
The study of people in relation to their fellow human
beings.

E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB Field
Social Psychology
An area within psychology that blends concepts from
psychology and sociology and that focuses on the
influence of people on one another.

E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB Field
Anthropology
The study of societies to learn about human beings
and their activities.

E X H I B I T 1–3 (cont’d)
 Contributing Disciplines
Psychology seeks to Sociology studies
measure,explain, people in relation to their
and change fellow human beings
behavior

Social psychology
focuses on the
influence of people
on one another

Political science is the

Anthropology is the
study of the
study of societies
behavior of individuals
to learn about human
and groups within
beings and their activities
a political environment
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 Dependent Variable
• Things which will be affected by OB
– Productivity
• What factors influence the effectiveness and
efficiency of individuals
– Absenteeism
• Absenteeism is not all bad
• Having too high employee absent rate will affect
productivity
– Turnover
• Not all turnover is bad
• High turnover rate…in some degree affect
productivity, particularly 4 the hospitality industry
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– Organizational Citizenship Behavior (OCB)
• No one will want to pick up the slack
• No one would want to walk extra miles to
achieve the goals.
– Job satisfaction
• Unhappy employees…what else can you say?

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 Organizational Citizenship

• Discretionary behavior
• Not part of an employee's formal job requirements
• Promotes the effective functioning of the
organization

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 Examples of OCB
• Helping others on one's work team
• Volunteering for extra job activities
• Avoiding unnecessary conflicts
• Making constructive statements about one's
work group and the overall organization

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 Independent variables
• Individual variables
– Age, gender, personality, emotion, values, attitude,
ability
– Perception, individual decision making, learning,
and motivation
• Group variables
– Norm, Communication, Leadership, Power, Politics
• Organization system variables
– Organizational Culture, HR practices
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A Short History of Organizational Behavior

• F.W. Taylor and Scientific Management
• Mary Parker Follett
• Hawthorne Studies
• Theory X and Y
 F.W. Taylor and
Scientific Management (1856‐1915)
• Scientific management: the systematic study
of relationships between people and tasks for
the purpose of redesigning the work process
to increase efficiency.
• The amount of effort each employee expends
to produce a unit of output can be reduced by
increasing specialization and the division of
labor.
 Four Principles of
Scientific Management_1
1. Study the way employees perform their tasks,
gather informal job knowledge that 
employees possess, and experiment with ways 
of improving the way tasks are performed.
2. Codify the new methods of performing tasks
into written rules and standard operating 
procedures.
 Four Principles of
Scientific Management_2
3.Carefully select employees so that they
possess skills and abilities that match the
needs of the task, and train them to perform
the task according to the established rules
and procedures.
4.Establish an acceptable level of performance
for a task, and then develop a pay system that
provides a reward for performance above the
acceptable level.
Mary Parker Follett (1868-1933)
• Management must consider the human side
• Employees should be involved in job analysis
• Person with the knowledge should be in
control of the work process regardless of
position
• Cross‐functioning teams used to accomplish
projects.
 The Hawthorne Studies

• Hawthorne Works of the Western Electric

Company; 1924‐1932
• Initiated as an attempt to investigate how
characteristics of the work setting affect
employee fatigue and performance (i.e.,
lighting)
• Found that productivity increased
regardless of whether illumination was
raised or lowered
 Douglas McGregor:
Theory X and Theory Y

Theory X Theory Y
• Average employee is • Employees will do what is
lazy, dislikes work, and good for the organization
will try to do as little when committed
as possible • Manager’s task is creating
• Manager’s task is to a work setting that
supervise closely and encourages commitment
control employees to organizational goals
through reward and and provides
punishment opportunities for
employees to exercise
initiative
 Challenges and
Opportunities for OB

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 Challenges and
Opportunities for OB
• Typical employee is getting older
• More women and minorities in the workplace
• Global competition is requiring employees to
become more flexible
• Historical loyalty‐bonds that held many
employees to their employers are being
severed

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Challenges and Opportunities for OB
1. Responding to Globalization
– Economic, social, and cultural connectivity with
people in other parts of the world
– Increased foreign assignments
– Higher connectivity (and interdependence) due to
better information technology and transportation
systems
– Working with people from different cultures
– Overseeing movement of jobs to countries with
low‐cost labor
2.Managing Workforce Diversity
– Workforce diversity: organizations are   becoming a
more heterogeneous mix of people in terms of
gender, age, race, ethnicity, and sexual orientation.
• Gender, race, national origin,  age, etc…
– Embracing diversity
– Changing demographics

• Workforce diversity can increase creativity and
innovation in organizations as well as improve
decision making by providing different
perspective on problem.
 Diversity Implications
• Managers have to shift their philosophy
from treating everyone alike to
recognizing differences and responding
to those differences in ways that ensure
employee retention and greater
productivity.

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3.Improving Quality and Productivity
– “Almost all quality improvement comes via
simplification of design, manufacturing,
layout, processes, and procedures.”
‐‐‐‐Tom Peters

– Today’s managers understand that success of
any effort at improving quality and
productivity must include their employees.
4.Improving People Skills
• We all present relevant concepts that can
explain and predict the behavior of people at
work.
– Learn ways to motivate people
– How to be a better communicator
– How to create more effective teams
5.Empowering people
– Decision making is being pushed down to the
operating level, where workers are being given the
freedom to make choices about schedules and
procedures and to solve work‐related problems.
– Self‐management team
– Managers are empowering employees.
– Employees‐how to take responsibility for their
work and make appropriate decisions.
– Leading style, power relationships, the way work is
designed, the way organizations are structured.
6.Stimulating Innovation and Change
– Today’s successful organizations must foster
innovation and master the art of change or
they’ll become candidate for extinction.
– An organization’s employees can be the
impetus for innovation and change or they
can be a majors stumbling block.
– The challenge for managers is to stimulate
their employees’ creativity and tolerance
for change.
7.Coping with “temporariness”
– Managing today would be more
accurately described as long periods of 
ongoing change, interrupted occasionally 
by short periods of stability!
– The actual jobs that workers perform are
in a permanent state of flux.
– So workers need to continually update
their knowledge and skills to perform
new job requirements.
8.Helping employees balance work/life conflicts
– A number of forces have contributed to blurring
the lines between employee work and personal
lives.
– First, the creation of global organizations
means their world never sleeps.
– Second, communication technology allows
employee to do their work at home, in their car,
or on the beach.
– Third, organizations are asking employees to put
in longer hours.
– Finally, fewer families have only a single
breadwinner.
9.Declining employee loyalty
– Beginning in the mid‐1980s, in response to
global competition, unfriendly takeovers,
and the like, corporations began to discard
traditional policies on job security, seniority
and compensation.
– An important OB challenge will be for
managers to devise ways to motivate
workers who feel less committed to their
employers, while maintaining their
organizations’ global competitiveness.
10.Improving ethical behavior
– Members of organizations are increasingly
finding themselves facing ethical dilemmas,
situations in which they are required to
define right and wrong conduct.
– In recent years, the line differentiating right
from wrong has become even more blurred.
– Managers and their organizations are writing
and distributing codes of ethics to guide
employees through ethical dilemmas.
Levels of Analysis

Organizational Level

Group Level

Individual
Level
• Individual behavior
– values, attitudes, perception, and learning
– the role of personality and emotions
– motivation issues
• Group behavior
– Group behavior model
– Ways to make teams more effective
– Communication issues and group decision making
– Leadership, trust, power, politics, conflict and
negotiation
• Organizational behaviors
– Culture, structure, ….
 Models Of Organizational Behavior
There were 5 popular common models of
organizational behavior, and several of them
exist even today.

1) Autocratic Model
We can find that this model relies on power. 
For example, managers have the ability, 
authority to control their employees and the 
employee’s performance in this stage will be 
much lower than expected.
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 Models Of Organizational Behavior
2) Custodial Model
This model usually depends on economic 
resources (money). For instance, managers 
can simulate their employees by offering them 
facilities, and benefits, but in this model the 
employees won’t work as a team (Less 
sharing with others) because everyone will 
depend on his self to get more benefits than 
the others.
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 Models Of Organizational Behavior
3) Supportive Model
This model relies on leadership. For 
example, managers support their 
employees by encouraging, and 
supporting them to perform a better 
job, get along with each other and as 
well as developing their skills. The 
performance results will be awakened 
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drives.
 Models Of Organizational Behavior
4) Collegial Model
This model means that employees 
depend on each other cooperatively
and work as a team to do the task. 
Everyone will be having a normal 
enthusiasm, self‐discipline, and 
responsible behavior towards their
tasks.
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 Models Of Organizational Behavior
5) System Model
This model is based on trust, self‐
motivation, and the performance
results will be more than expected, 
because employees will be 
committed to do their tasks as 
expected, and as well as try to 
achieve the organizational goals.
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 SOBC
• This model is based on the assumption
that every behavior is caused. What we
see are the consequences of the
behavior shown by organism due to
stimulus.
• SOBC model is based on the very
practical philosophy of human behavior
that: every behavior is caused and
follows the Cause‐Effect relationship.
 SOBC

Organism Behavior
Stimulus  Consequences
{individual } {action}
{Cause} { result}
 SOBC
• The Stimulus
is the cause that may be overt or covert, physical, 
social, psychological, technological, etc.
• The Organism
can be individual or a group. They have cognitive 
mediators with physiological existence.
• The Consequences
are expressed as the results that may be Positive 
or negative and can have effects on 
environmental dynamics and applications.
Basic OB 
Model, 
Stage II

E X H I B I T 1-7
 Summary
• OB has widespread applications
• Evolution of OB
Classical       Human Relations       Contingency
• Managers have different roles
– Receive and transmit  information
– Interact with people
– Make decisions
• Contemporary Concerns

Quality,  Recruitment 
Workplace  Employment 
speed,  and 
diversity relationship
flexibility Retention
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1. Define organizational behavior (OB).
2. Explain the value of the systematic study of OB.
3. Identify the contributions made to OB by major behavioral
science disciplines.
4. Describe how OB concepts can help make organizations
more productive.
5. List the major challenges and opportunities for managers to
use OB concepts.
6. Identify the three levels of analysis in OB.

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 Assignment‐1
1. Describe how OB concepts can help
make organizations more productive.
2. Explain in brief the Evolution of OB
(Classical ‐ Human Relations ‐
Contingency).
3. What are four approaches to
organizational behaviour studies?

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 Assignment‐1

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