2. INTRODUCTION
OB is one among the specialized fields of study concerned
with understanding and describing human behavior in an
organization. It is the study of why people behave as they
do in organizations. Organizational behavior involves three
levels of analysis : It is concerned with individual behavior,
group behavior and the behavior of the organization itself.
SANDHYA YERIYURU UMESH 2
3. CONT……
In the words of Keith Davis “Organizational behavior is an
academic discipline concerned with understanding and
describing human behavior in an organizational
environment. It seeks to shed light on the whole complex
human factor in organization by identifying causes and
effects of that behavior”.
SANDHYA YERIYURU UMESH 3
4. CONT….
Organization are social systems. As pointed out by Etzinoni,
“We are born in organization, educated by organizations,
and most of us send much of our lives working for
organizations. Organizations of one form or another are a
necessary part of our society and they serve many
important needs. Organizations affect us enormously. In
short, we lead organizational lives. It is important,
therefore, if one wishes to work in them, to manage them,
to understand how organization are formed, they operate
and how pervasive are influences which they exercise on
the behavior of people.
SANDHYA YERIYURU UMESH 4
5. DEFINITIONS & MEANING
Fred Luthan in his book “Organizational Behvaiour”
defined, “Organizational behaviour attempts to study the
behaviour of people in organizations. It is concerned with
the understanding, prediction and control of such
behaviour”. Organizational behvaiour is the study of the
behaviour of people within an organizational setting.
SANDHYA YERIYURU UMESH 5
6. It involves the understanding, prediction and control of
human behaviour and the factors. Which influence the
performance of people as member of an organization.
They study of it is to utlize it as a tool for human benefit. It
can broadly be applied to the behaviour of people in all
types of organizations, such as those of business,
government and service organizations.
SANDHYA YERIYURU UMESH 6
7. In the words of Stephen P. Robbins; “Organizational
Behaviour is a field of study that investigates the impact
that individuals, groups and structure have on behaviour
within organizations, for the purpose of applying such
knowledge towards improving an organization’s
effectiveness”. From this definition we could understand
that organizational behaviour is a field of study and it is a
distinct area of expertise with a common body of
knowledge. What does it study ?
SANDHYA YERIYURU UMESH 7
9. Organizational behavior is the systematic study of the
actions and attitudes that people exhibit in organizations.
Three behavioral determinants of the performance of
employees are
Productivity
Absenteeism
Turnover
All managers are concerned with the quantity and quality
of output that each employee generates. But absence and
turnover can adversely affect this output.
SANDHYA YERIYURU UMESH 9
10. Job satisfaction (an attitude) is important for three
reasons.
First, there may be a link between satisfaction and
productivity.
Second, satisfaction appears to be negatively related to
absenteeism and turnover.
Third, it can be argued that managers have a
humanistic responsibility to provide employees with jobs
that are challenging, intrinsically rewarding, and
satisfying.
SANDHYA YERIYURU UMESH 10
11. OB is specifically concerned with work-related behavior
which takes place in organizations. An organization is a
formal structure of planned coordination involving two or
more people who share a common purpose. It is
characterized by formal roles that define and shape the
behavior of its members.
SANDHYA YERIYURU UMESH 11
13. Elements of Organizational Behavior
Organizations operate their functional activities by some
elements, which affect organizations.
People:
People make up the internal social system in the
organization. They consist of individuals and groups.
Groups may be large or small, formal and informal,
official or unofficial. Human organization changes every
day. People are living, thinking and feeling beings that
created the organization and try to achieve the objectives
and goals.
SANDHYA YERIYURU UMESH 13
14. Structure:
Structure defines the formal relationship and use
of people in the organization. Different people in an
organization are given different roles and they have
certain relationship with others. Those people have to be
related in some structural way so that their work can be
effectively coordinated.
SANDHYA YERIYURU UMESH 14
15. Technology:
The technology imparts the physical and economic
conditions within which people work. With their bear
hands people can do nothing. So they are given
assistance of building, machines, tools, processes and
resources. The nature of technology depends very much
on the nature of the organization, influences the work or
working conditions.
SANDHYA YERIYURU UMESH 15
16. Social System:
Social system provide external environment within
which organization operates. A single organization can
not exist alone. It is a part of the whole. A single
organization can not give everything and therefore there
are many other organizations. All these organizations
influence each other.
SANDHYA YERIYURU UMESH 16
18. The goals of OB are to explain, predict, and control human
behavior.
When we seek answers to why an individual or group did
something, we are pursing the explanation objective.
It is probably the least important of the three goals because
it occurs after the fact. If we are to understand something,
however, we must begin by trying to explain it.
The goal of prediction focuses on future events to determine
what outcomes will follow from a given action. A manager
can use this information when making decisions.
SANDHYA YERIYURU UMESH 18
19. The most controversial goal is using OB knowledge to
control behavior. The idea that one person should attempt
to get others to behave in a certain way, while the
subjects may not know that their behavior is being
manipulated, has been viewed in some circles as
unethical and repugnant. While OB offers ways to control
the behavior of people, whether those methods should be
used is a question of ethics.
SANDHYA YERIYURU UMESH 19
20. Goals of Organizational Behavior
Describe: The first goal is to describe, systematically how
people behave under a variety of conditions. Achieving
this goal allows managers to communicate about human
behavior at work using a common language.
Understand: A second goal is to understand any people
behave as they do. The managers would be frustrated if
they could talk about behavior of their employees, but not
understand the reasons behind those actions.
SANDHYA YERIYURU UMESH 20
21. Predict: The managers would have capacity to predict
which employees might be dedicated and productive or
which ones might have absent, cause problem. And thus
the managers could take preventive actions.
Control: The final goal of OB is to control and develop
some human activity at work. Since managers are held
responsible for performance outcome, they are vitally
interested in being able to make an impact on employee
behavior, skill development, team effort, and productivity.
Managers need to be able to improve results through the
actions they and their employees take, and organizational
behavior can aid them in their pursuit of this goal.
SANDHYA YERIYURU UMESH 21
22. Fundamental Concepts of Organizational
Behavior
In every field of social science, or even physical science,
has a philosophical foundation of basic concepts that
guide its development. There are some certain
philosophical concepts in organizational behavior also.
The concepts are-
SANDHYA YERIYURU UMESH 22
23. Individual differences:
Every individual in the world is different from others. This
idea is supported by science. Each person is different
from all others, probably in million ways.
The idea of individual difference comes originally from
psychology. From the day of birth, each person is unique,
and individual experiences after birth tend to make
people even more different.
SANDHYA YERIYURU UMESH 23
24. Perception:
Peoples perceptions are also differ when they see an
object. Two people can differently present a same object.
And this is occurring for their experiences. A person
always organizes and interprets what he sees according to
his lifetime of experience and accumulated value.
Employees also see work differently for differ in their
personalities, needs, demographics factors, past
experiences and social surrounding.
SANDHYA YERIYURU UMESH 24
25. A whole person:
An employee’s personal life is not detached from his
working life. As an example, A women who attend the
office at 8:30 AM is always anxious for her children’s
school time (if her children able to attend the school or
not). As a result, its impact falls on her concentration that
means her working life. For this reason, we cannot
separate it. So manager should treat an employee as a
whole person.
SANDHYA YERIYURU UMESH 25
26. Motivated behavior:
An employee has so many needs inside him. So, they
want to fulfill those needs. That’s why; they had to
perform well in the organization. Some motivations are
needed to enrich the quality of work. A path toward
increased need fulfillment is the better way of enriches
the quality of work.
SANDHYA YERIYURU UMESH 26
27. Desire for involvement:
Every employee is actively seeking opportunities at work
to involve in decision-making problems. They hunger for
the chance to share what they know and to learn from the
experience. So, organization should provide them a
chance to express their opinions, ideas and suggestion for
decision-making problem. A meaningful involvement can
bring mutual benefit for both parties.
SANDHYA YERIYURU UMESH 27
28. Value of the person:
An employee wants to be treated separately from other
factor of production (land, capital, labor). They refuse to
accept the old idea that they are simply treated as
economic tools because they are best creation of
almighty Allah. For this reason, they want to be treated
with carrying respect, dignity and other things from their
employers and society.
SANDHYA YERIYURU UMESH 28
30. Autocratic Model
The autocratic model depends on power. Those who are in
command must have the power to demand “you do this-or
else,” meaning that an employee who does not follow
orders will be penalized.
In an autocratic environment the managerial orientation
is formal, official authority. This authority is delegated by
right of command over the people to it applies.
SANDHYA YERIYURU UMESH 30
31. CONT…………………
Under autocratic environment the employee is obedience
to a boss, not respect for a manager.
The psychological result for employees is dependence on
their boss, whose power to hire, fire, and “perspire” them
is almost absolute.
The boss pays minimum wages because minimum
performance is given by employees. They are willing to
give minimum performance-though sometimes
reluctantly-because they must satisfy subsistence needs
for themselves and their families.
SANDHYA YERIYURU UMESH 31
32. CONT……….
Some employees give higher performance because of
internal achievement drives, because they personally like
their boss, because the boss is “a natural-born leader,” or
because of some other factor; but most of them give only
minimum performance.
SANDHYA YERIYURU UMESH 32
33. The Custodial Model
A successful custodial approach depends on economic
resources.
The resulting managerial orientation is toward money to
pay wages and benefits.
Since employees’ physical needs are already reasonably
met, the employer looks to security needs as a motivating
force. If an organization does not have the wealth to
provide pensions and pay other benefits, it cannot follow a
custodial approach.
SANDHYA YERIYURU UMESH 33
34. CONT……….
The custodial approach leads to employee dependence on
the organization. Rather than being dependence on their
boss for their weekly bread, employees now depend on
organizations for their security and welfare.
Employees working in a custodial environment become
psychologically preoccupied with their economic rewards
and benefits.
SANDHYA YERIYURU UMESH 34
35. CONT………
As a result of their treatment, they are well maintained
and contended. However, contentment does not
necessarily produce strong motivation; it may produce
only passive cooperation. The result tends to be those
employees do not perform much more effectively than
under the old autocratic approach.
SANDHYA YERIYURU UMESH 35
36. The Supportive Model
The supportive model depends on leadership instead of
power or money. Through leadership, management
provides a climate to help employees grow and
accomplish in the interests of the organization the things
of which they are capable.
SANDHYA YERIYURU UMESH 36
37. CONT……
The leader assumes that workers are not by nature
passive and resistant to organizational needs, but that
they are made so by an inadequately supportive climate
at work. They will take responsibility, develop a drive to
contribute, and improve themselves if management will
give them a chance. Management orientation, therefore,
is to support the employee’s job performance rather than
to simply support employee benefit payments as in the
custodial approach.
SANDHYA YERIYURU UMESH 37
38. CONT……….
Since management supports employees in their work, the
psychological result is a feeling of participation and task
involvement in the organization. Employee may say “we”
instead of “they” when referring to their organization.
Employees are more strongly motivated than by earlier
models because of their status and recognition needs are
better met. Thus they have awakened drives for work.
SANDHYA YERIYURU UMESH 38
39. The Collegial Model
A useful extension of the supportive model is the collegial
model. The term “collegial” relates to a body of people working
together cooperatively.
The collegial model depends on management’s building a
feeling of partnership with employees.
The result is that employees feel needed and useful. They feel
that managers are contributing also, so it is easy to accept and
respect their roles in their organization. Managers are seen as
joint contributors rather than as bosses.
The managerial orientation is toward teamwork. Management
is the coach that builds a better team
SANDHYA YERIYURU UMESH 39
40. CONT……..
The employee’s response to this situation is responsibility.
For example employees produce quality work not because
management tells them to do so or because the inspector
will catch them if they do not, but because they feel inside
themselves an obligation to provide others with high
quality. They also feel an obligation to uphold quality
standards that will bring credit to their jobs and company.
SANDHYA YERIYURU UMESH 40
41. CONT……
The psychological result of the collegial approach for the
employee is self-discipline. Feeling responsible,
employees discipline themselves for performance on the
team in the same way that the members of a football
team discipline themselves to training standards and the
rules of the game.
In this kind of environment employees normally feel some
degree of fulfillment, worthwhile contribution, and self-
actualization, even though the amount may be modest in
some situation. This self-actualization will lead to
moderate enthusiasm in performance.
SANDHYA YERIYURU UMESH 41
42. The System Model
An emerging model of organization behavior is the
system model. It is the result of a strong search for higher
meaning at work by many of today’s employees; they
want more than just a paycheck and job security from
their jobs. Since they are being asked to spend many
hours of their day at work, they want a work context there
that is ethical, infused with integrity and trust, and
provides an opportunity to experience a growing sense of
community among coworkers.
SANDHYA YERIYURU UMESH 42
43. CONT………
To accomplish this, managers must increasingly
demonstrate a sense of caring and compassion, being
sensitive to the needs of a diverse workforce with rapidly
changing needs and complex personal and family needs.
In response, many employees embrace the goal of
organizational effectiveness, and reorganize the mutuality
of company-employee obligations in a system viewpoint.
They experience a sense of psychological ownership for
the organization and its product and services.
SANDHYA YERIYURU UMESH 43
44. CONT……..
They go beyond the self-discipline of the collegial
approach until they reach a state of self-motivation, in
which they take responsibility for their own goals and
actions.
As a result, the employee needs that are met are wide-
ranging but often include the highest-order needs (e.g.,
social, status, esteem, autonomy, and self actualization).
SANDHYA YERIYURU UMESH 44
45. CONT……..
Because it provides employees an opportunity to meet
these needs through their work as their work as well as
understand the organization’s perspectives, this new
model can engender employees’ passion and
commitment to organizational goals. They are inspired;
they feel important; they believe in the usefulness and
viability of their system for the common good.
SANDHYA YERIYURU UMESH 45
46. Historical overview
The notion of an organisation as an imperative,
absolute entity, is the direct outcome of historical
transformations occurred in Europe and North America
from the end of the 18th century onwards:
SANDHYA YERIYURU UMESH 46
47. CONT……..
Before the 19th Century:
• Experience of Artisan work (e.g. Ironsmith)
– Technical skills, personal competence and craft pride
constitutive of the working process.
Industrial revolution in the 19th Century
– Close relationship between the subject of work and his/her
activity was lost
SANDHYA YERIYURU UMESH 47
48. CONT..........
Early 20th Century: ‘Classical approach’
Advent of scientific management (F.W. Taylor)
– Aim: controlling labour through science
– Far-reaching process of establishing control and surveillance:
to discipline the mind and body of the productive subject
was the central concern.
– Deconstruction of the task from ‘within’
– Rigid control over time and body movements
– Conception and execution as separate domains in
hierarchical relationships
SANDHYA YERIYURU UMESH 48
49. CONT..........
Hawthorne Studies and the Human Relations
Movement (Elton Mayo, 1923-1933)
– Hawthorne studies: environment and productivity?
– Results: organizations are social systems, not just technical
economical systems
– Groups, teamwork, different job roles, human relations are
of great significance in organizations
– We are motivated by many needs
– Leadership should be modified to include concepts of human
relations
A new discipline of human behaviour and, by extension,
Organisational behaviour. (1960s)
SANDHYA YERIYURU UMESH 49
51. CONT………
The organization seen as an open socio-
technical system.
The existence of subsystems which interact
with one another.
Management is a distinct subsystem which
is responsible for direction and coordination
of all other subsystems
SANDHYA YERIYURU UMESH 51
53. The study of Organizational behavior
Psychology
Individual
Sociology
Study of
Social Psychology Group Organizational
Behavior
Anthropology
Organization
Political Science
SANDHYA YERIYURU UMESH 53
54. PSYCHOLOGY
• Concentrates on the study of individual
behavior, as well as, personality and group
behavior.
• Psychology is the science that seeks to
measure, explain, and sometimes change the
behavior of individuals. The following areas of
psychology have contributed to the knowledge
base of OB:
Learning and personality theorists,
Counseling psychologists,
Industrial and organizational psychologists
SANDHYA YERIYURU UMESH 54
55. SOCIOLOGY
Focuses on social behavior and is
particularly concerned about societal structures
and controls
• Sociology, the study of people in relation to
their fellow human beings, has contributed to
OB in the following areas:
Group dynamics
Design of work teams
Organizational culture, theory
Structure and technology
Power, communications, and conflict
SANDHYA YERIYURU UMESH 55
56. SOCIAL PSYCHOLOGY
• Social psychology blends concepts from
psychology and sociology to focus on how
people influence one another. Social
psychologists have made significant
contributions in the areas of measuring,
understanding, and changing attitudes;
communication patterns; the ways in which
group activities can satisfy individual needs;
and group decision-making processes.
SANDHYA YERIYURU UMESH 56
57. ANTHROPOLOGY
• Anthropology is the study of societies to learn
more about human beings and their activities.
Much of our current understanding of
organizational cultures and environments, and
the differences among national cultures is the
result of the work of anthropologists.
SANDHYA YERIYURU UMESH 57
58. POLITICAL SCIENCE
• Political science is the study of the behavior of
individuals and groups within a political
environment. Specific topics of concern include
structuring of conflict, allocation of power, and
how people manipulate power for individual
self-interest.
SANDHYA YERIYURU UMESH 58
59. Changing Social and Cultural
Environment
• National culture
• Organizational ethics and well-being
• Diverse work force
SANDHYA YERIYURU UMESH 59
60. SOCAIL SYSTEM AND
ORGANISATIONAL CULTURE
• The first challenge is the changing social and cultural
environment. Forces in the social and cultural
environment are those that are due to changes in the
way people live and work – changes in values,
attitudes, and beliefs brought about by changes in a
nation’s culture and the characteristics of its people.
SANDHYA YERIYURU UMESH 60
61. CONT…….
• National culture is the set of values or beliefs that a
society considers important and the norms of behavior
that are approved or sanctioned in that society. Over
time, national cultures change and this affects the
values and beliefs of each nation’s members.
SANDHYA YERIYURU UMESH 61
62. CONT………
• Ethics scandals have hit many companies recently
including Tyco, Adelphia, Enron, and Arthur Andersen.
An organization’s ethics are the values, beliefs, and
moral rules its managers and employees should use to
analyze or interpret a situation and then decide what is
the most appropriate way to behave.
SANDHYA YERIYURU UMESH 62
63. CONT…..
• Ethical organizational behavior affects the well-being
(happiness, health, and prosperity) of a nation, an
organization, citizens, and employees.
• Ethics also define an organization’s social responsibility
– its obligations toward people or groups outside the
organization that are directly affected by its actions.
SANDHYA YERIYURU UMESH 63
64. What Is Organizational Culture?
Organizational
Characteristics
Culture
1. Innovation and risk
taking
A common perception
held by the organization’s 2. Attention to detail
members; a system of 3. Outcome orientation
shared meaning 4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
SANDHYA YERIYURU UMESH 64
65. What Do Cultures Do?
Culture’s Functions
1. Defines the boundary between one organization and
others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to
something larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control mechanism
for fitting employees in the organization
SANDHYA YERIYURU UMESH 65
67. INTERNATIONAL DIMENSION
• The world of organizations is no longer defined by
national boundaries. INTERNATIONAL DIMENSIONS OF
ORGANIZATIONAL BEHAVIOR breaks down the
conceptual, theoretical, and practical boundaries
limiting our ability to understand and work with people
in countries and cultures around the world. The
approach views global complexity as neither
unpredictable nor random; rather, she demonstrates
that variations across cultures and their impacts on
organizations follow systematic, predictable patterns.
SANDHYA YERIYURU UMESH 67
