Definition

• Organizational behaviour, is “… a study and

application of knowledge about human
behaviour – as individuals and in groups – in
orgns – strives to identify ways in which people
can act more effectively.”
• “The understanding, prediction and
management of human behaviour in
organisations.”
• Is an applied science- best practices in one orgn can
be communicated to others
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What is Organizational Behavior?

Insert Figure 1.1 here

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Why Study Organizational Behavior

Understand
organizational
events

Organizational
Behavior
Research

Influence Predict
organizational organizational
events events

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 Goals
• Describe how people behave under a
variety of conditions
• Understand why people behave as they do
• Predict future employee behaviour
• Control and develop human activity at
work to improve productivity, skill
improvement, team effort, etc

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 Forces
• People- individuals and groups
• Structure- jobs and relationships
• Technology-machinery, computers
• Environment-govt, competition, social
pressures.
All the above forces interact on each other
resulting in OB.

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Generalisations about human behaviour
> happy workers are productive workers.
> Individuals are most productive when the boss is
friendly, reliable and unassuming.
> Interviews are effective selection devices.
> Everybody likes a challenging job
> People will have to be bullied/intimidated to make
them to do their jobs.
> Money motivates all.
> People are more concerned about their own salaries than others’.
> Members of effective groups do not quarrel among themselves.

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Levels of Analysis

Organizational Level

Group Level

Individual
Level

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 Four Principles of
Scientific Management
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.

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 Four Principles of
Scientific Management
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.
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 The Hawthorne Studies
• Hawthorne Works of the Western Electric
Company near Chicago; 1924-1932 – these
studies mark the starting point of the field of
Organisational Behaviour
• 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.
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Contributing Disciplines to the OB Field

EXHIBIT 1-3a
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Contributing Disciplines to the OB Field

EXHIBIT 1-3c
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Contributing Disciplines to the OB Field

EXHIBIT 1-3b
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Contributing Disciplines to the OB Field

EXHIBIT 1-3c
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Contributing Disciplines to the OB Field

EXHIBIT 1-3d
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Contributing Disciplines to the OB Field

EXHIBIT 1-3f
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 5 OB Models

given by Keith Davis and Newstrom are:

1) Autocratic
2) Custodial
3) Supportive
4) Collegial
5) Systems
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 AUTOCRATIC MODEL
• The basis of this model is power with a managerial
orientation of authority. The employees in turn are
oriented towards obedience and dependence on the
boss. The employee need that is met is subsistence.
The performance result is minimal - most
prevalent during he industrial revolution – persons
in power can demand work from workers –
pushing, directing and persuading – tight control –
unfair practices, low payment and exploitation – employees
put in min work in the job to serve the basic needs of the
family - though harsh, it has worked well in certain
conditions, e.g., organisational crisis.
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 Custodial
• The basis of this model is economic resources
with a managerial orientation of money. The
employees in turn are oriented towards security
and benefits and dependence on the
organization. The employee need that is met is
security. The performance result is passive
cooperation. To perk up the sagging morale of
the workers under the autocratic model
employers began to offer various welfare
schemes in the 19th century – paternalism –
fringe benefits – job security.
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• E.g., IBM makes considerable efforts to stabilise the
workforce and preserve their jobs – reduces
overtime, freezes hiring, allows job transfers and
offers retirement incentives and lessens sub-
contracting to adjust IT slow downs. The
organisation should have considerable resources to pay
pension benefit from physical needs to security needs.
• Workers depend more on the organisation and less on the
managers – ensures loyalty – economic rewards are
assuredeven if the employee does not perform – contented
– but performance may decline because of job security –
1940s and 50s – University of Michiganconducted studies
which revealed that happy employees are not necessarily
the ost producticve employees. 20
 Supportive
The basis of this model is leadership with a managerial
orientation of support. The employees in turn are oriented
towards job performance and participation. The employee
need that is met is status and recognition. The performance
result is awakened drives.
“The leadership and other processes of the organisation must
be such as to ensure a maximum probability that in all
interactions and all relationships within the organisation
each member will, in the light of his or her back ground,
values, and expectations view the experience as supportive
and one which builds and maintains his or her sense of
personal worth and importance.” e.g., TATAs.
Ensures organisatinal harmony.
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 Collegial
• The basis of this model is partnership with a managerial
orientation of teamwork. The employees in turn are
oriented towards responsible behavior and self-discipline.
The employee need that is met is self-actualization. The
performance result is moderate enthusiasm. “Collegial”
means a group of people working for a common purpose.
Manager is not addressed as ‘boss’ but is a facilitator.
Employees are self disciplined, self content and self
actualised. E.g., a R&D team or a project team.
• Although there are four separate models, almost no
organization operates exclusively in one. There will
usually be a predominate one, with one or more areas over-
lapping in the other models.
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 autocratic Custodial Supportive Collegial
• Autocratic Custodial Supportive Collegial
• Model
Model depends
depends on on Power Economic
Leadership Partnership
resources
• PowerEconomic resourcesLeadershipPartnershipManagerial
orientationAuthorityMoneySupportTeamworkEmployee
orientationObedienceSecurityJobResponsiblityEmployee
Managerial orientation Authority Money Support Teamwork
psychological resultDependence on bossDependence on
organizationParticipationSelf-disciplineEmployees needs
Employee orientation Obedience Security
metSubsistemceMaintenanceHigher-orderSelf- Job Responsibility
actualizationPerformance resultMinimumPassive
cooperationAwakened
Employee drivesModerate
Dependence
Dependence enthusiasm
on Participation Self-discipline
psychological result on boss
organization

Self-
Employees needs met Subsistence Maintenance Higher-order
actualization

Passive Awakened Moderate

Performance result Minimum 23
cooperation drives enthusiasm