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What is organization behaviour


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By Neha Rathi …

By Neha Rathi

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  • 1. What Is Organization BehaviourContent of the chapter… 1) Meaning 2) Definition 3) Nature 4) Characteristics 5) Relative contribution of disciplines on OB 6) Significance of OB 7) Approaches of OB 8) Challenges 9) Do Successful Organizations Put People First?
  • 2. MeaningOB is nothing more than developing our understanding and development of people skill. Amultidisciplinary field devoted to understanding individual and group behavior, interpersonalprocesses, and organizational dynamics.OB is Study of human behavior in organizations. There are two words- 1- Organization 2- BehaviourAn organization is a collection of people working together in a division of labor to achieve acommon purpose.The study of Organizational Behaviour (OB) is very interesting and challenging too. It is relatedto individuals, group of people working together in teams. The study of organizational behaviourrelates to the expected behaviour of an individual in the organization. No two individuals arelikely to behave in the same manner in a particular work situation. It is the predictability of amanager about the expected behaviour of an individual.OB is concerned with the study of what people do in an organization (social system) and howthat behavior affects the performance of the organization • Individual Behavior • Individual and group behavior • Organizational structure DEFINITIONSAccording to Luthans―OB is directly concerned with the understanding, predicting and controlling of human behaviorin organizations.‖According to LM PrasadThe study and application of knowledge about human behaviour related to other elements of anorganization such as structure, technology and social systemsStephen P RobinsOrganizational behaviour as a systematic study of the actions and attitudes that people exhibitwithin organizations.Roman J. Alday―O.B as a branch of the social science that seeks to build theories that can be applied topredicting understanding and controlling behavior in work organizations‖“Organizational behaviour is a field of study that investigates the impact that individuals, groupsand organizational structure have on behaviour within the organization, for the purpose ofapplying such knowledge towards improving an organizational effectiveness‖.
  • 3. Nature of OB1) A separate field of study and not a discipline only It 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 approach The 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 Art Organization 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 Approach Organizational 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 Objectives Organizational 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 Approach An individuals behaviour can be analyzed keeping in view his psychological framework, interpersonal-orientation, group influence and social and cultural factors; Thus, individuals nature is quite complex and organizational behaviour by applying systems approach tries to find solutions for this complexity..
  • 4. 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-ordination 5. 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 BehaviourPsychology:Psychology is an applied science, which attempts to explain human behaviour in aparticular situation and predicts actions of individuals. Psychologists have been able tomodify individual behaviour largely with the help of various studies. It has contributedtowards various theories on learning, motivation, personality, training and development,theories on individual decision making, leadership, job satisfaction, performanceappraisal, attitude, ego state, job design, work stress and conflict management. Studiesof these theories can improve personal skills, bring change in attitude and developpositive approach to organizational systems. Various psychological tests are conductedin the organizations for selection of employees, measuring personality attributes andaptitude. Various other dimensions of human personality are also measured. Theseinstruments are scientific in nature and have been finalized after a great deal ofresearch.Sociology:Science of Sociology studies the impact of culture on group behaviour and hascontributed to a large extent to the field of group-dynamics, roles that individual plays inthe organization, communication, norms, status, power, conflict management, formalorganization theory, group processes and group decision-making.Political science:Political science has contributed to the field of Organizational behaviour. Stability ofgovernment at national level is one major factor for promotion of international business,financial investments, expansion and employment. Various government rules and
  • 5. regulations play a very decisive role in growth of the organization. All organizationshave to abide by the rules of the government of the day.Social psychology:Working organizations are formal assembly of people who are assigned specific jobsand play a vital role in formulating human behaviour. It is a subject where concept ofpsychology and sociology are blend to achieve better human behaviour in organization.The field has contributed to manage change, group decision-making, communicationand 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 environmentalframeworks. It understands difference in behaviour based on value system of differentcultures of various countries. The study is more relevant to organizational behaviourtoday due to globalization, mergers and acquisitions of various industries. The advent ofthe 21st century has created a situation wherein cross-cultural people will have to workin one particular industry. Managers will have to deal with individuals and groupsbelonging 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 aimsto understand organizational human behaviour so that acquisitions and mergers aresmooth. 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
  • 6. 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 ApproachScientific Management ApproachScientific management approach was developed by F.W. Taylor at the beginning of the 20th century. Thistheory supported the use of certain steps in scientifically studying each element of a job, selecting andtraining the best workers for the job arid making sure that the workers follow the prescribed method of
  • 7. doing the job. It provided a scientific rationale for job specialization and mass production. His assumptionwas that employees are motivated largely by money. To increase the output, Taylor advised managers topay monetary incentives to efficient workers. Yet, his theory was criticized by many employers and workers. Workers objected to the pressureof 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, Taylors view is nowconsidered inadequate and narrow due to the points given by the critics.Administrative Approach a) Bureaucratic ApproachWhile scientific management was focusing on the interaction between workers and the task, meresearchers were studying how to structure the organization more effectively. Instead of trying to makeeach worker more efficient, classical organization theory sought the most effective overall organizationalstructure for workers and managers.The theorys most prominent advocate, Max Weber, proposed a bureaucratic form of structure, which hethought would work for all organizations. Webers 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 Labor2. Authority and Responsibility3. Unity of Command4. Line of Authority5. Centralization6. Unity of Direction7. Equity8. Order9. Initiative10. Discipline11. Remuneration of Personnel12. Stability of Tenure13. General interest over individual interest14. Esprit de corps
  • 8. Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognizedthe behavioral side of management. However, they did not emphasize the human dimensions.Although there were varied and complex reasons for the emerging importance of behavioralapproach to management, it is generally recognized that the Hawthorne studies mark thehistorical roots for the field of organizational behaviour.Neo – classical ApproachHawthorne StudiesEven, as Taylor and Weber brought attention with their rational, logical approaches to moreefficient productivity, their views were criticized on the ground that both approaches ignoredworkers humanity.The real beginning of applied research in the area of organizational behaviour started withHawthorne Experiments. In 1924, a group of professors began an enquiry into the humanaspects 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 studiesbrought out a number of findings relevant to understanding human behaviour at work. TheHuman element in the workplace was considerably more important. The workers are influencedby 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. Buttheir impact on the emerging field of organizational behaviour was dramatic. They helped usherin a more humanity centered approach to work.MODERN APPROACH TO ORGANIZATIONAL BEHAVIOURHuman Resources ApproachThe human resources approach is concerned with the growth and development of peopletowards higher levels of competency, creativity and fulfillment, because people are the centralresource in any organization. This approach help employees become better in terms of workand responsibility and then it tries to create a climate in which they can contribute to the best oftheir improved abilities. This approach is also known as supportive approach because themanagers primary role changes from control of employees to providing an active support fortheir growth and performance.Contingency ApproachA contingency approach to organizational behaviour implies that different situations requiredifferent behavioral practices for effectiveness instead of following a traditional approach for allsituations. Each situation must be analyzed carefully to determine the significant variables thatexist in order to establish the more effective practices. The strength of this approach is that itencourages analysis of each situation prior to action. Thus, it helps to use all the currentknowledge about people in the organization in the most appropriate manner.
  • 9. Productivity ApproachProductivity is a ratio that compares units of output with units of input. It is often measured interms of economic inputs and outputs. Productivity is considered to be improved, if moreoutputs can be produced from the same amount of inputs. But besides economic inputs andoutputs, human and social inputs and outputs also arc important.Systems ApproachA system is an interrelated part of an organization or a society that interacts with everyonerelated to that organization or society and functions as a whole. Within the organization peopleemploy technology in performing the task that they are responsible for, while the structure ofthe organization serves as a basis for co-ordinating all their different activities. The systemsview emphasizes the interdependence of each of these elements within the organization, if theorganization as a whole is to function effectively. The other key aspect of the systems view oforganization is its emphasis on the interaction between the organization and its broaderenvironment,, which consists of social, economic, cultural and political environment within whichthey 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 certaintransformation processes, on its inputs in order to create outputs in the form of products orservices.Secondly, the organization depends on environment such as, public to accept its output. Thesystems view of organization thus emphasizes on the key interdependencies that organizationsmust manage. Within themselves the organizations must trade off the interdependencies amongpeople, tasks, technology and structure in order to perform their transformation processeseffectively and efficiently. Organizations must also recognize their interdependence with thebroader 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 DiversityWorkforce DiversityAn important watchword in the twenty-first century is workforce diversity—
  • 10. 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 broadmix of People from different racial and ethnic backgrounds, of different ages andgenders, 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. Eventhough valuing diversity is emphasized in books and classrooms, much remains to beaccomplished. A glass ceiling effect acts as a hidden barrier limiting the career advancementof minorities and women in some situations. In a complex organizational environment,different individuals with different educational backgrounds, races & differentprofessional/working skills work together. This leads to workforce diversity and OB needs tomanage it so that the above diversity does not offer obstacles towards growth of organization.Challenges at the Organizational Level 1- 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 organization 3-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 andtheir relationships is crucial to the organizations being able to be effectiveCon sideNo, most organizations are social systems secondarily. Their first need is to be efficient and tomake money. Managers need to be plugged into the outside environment but minimizingresources such as people is crucial to the success of the enterprise. Text QuestionsQ. 1. Define organizational bevaiour. What are various fields that have contributed to the field oforganizational 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 isnecessary in the field of Management?Q.5 Explain the field of OB. Why study is challenging? Do Successful Organization put peoplefirst?