the study of how individuals and groups interact within an organization and how these interactions affect an organization's performance toward its goal or goals.
5. Organization
⚫Organizing: Arranging the activities of the enterprise in such a way that they
systematicallycontribute to the enterprise’s goals.
⚫Adeliberate arrangement ofpeople to accomplish some specific purpose.
⚫An organization is a consciously coordinated social entity, with an identifiable
boundary, that functions on a relatively continuous basis to achieve a common goal
or set of goals.
6. What is a behaviour?
• Response of the organism or system to various stimuli or inputs, whether
internal or external, conscious or subconscious, overt or covert, and
voluntary or involuntary.
7. Organizational Behaviour
• OB is the study & application of knowledge about how people – as
individual & as groups- act within organizations. Its strives to identify
ways in which people can act more effectively. Newstrom & Davis
• OB is a field of study that investigates the impact that individuals,
groups and structure have on Behaviour within organization for the
purpose of applying such knowledge towards improving an
organization effectiveness. -S.P. Robbins
8. Organizational Behaviour
⚫Understanding human behaviour at work (individual, interpersonal,groups
dynamics etc).
⚫Systematic study of human behaviour in organizational settings.
⚫OB is multidisciplinaryin nature.
9. Basic assumptions of OB
⚫Organizations consist of people.
⚫Motivated people work effectively
.
⚫Disparity between organizational and individual goals.
⚫Impact of policies and procedures on people are not alwayspredictable.
11. Levels of organizational Behaviour
⚫Organizational process:change management,organizational culture and
climate.
⚫Group process: team dynamics,conflict, leadership, power and politics.
⚫Individualprocesses: perception, personality, attitudes, motivation.
12. Why study organizational behaviour?
⚫Understand employee behaviour
⚫Predict employee reactions
⚫Plan for effective interventions
16. E X H I B I T 1–3 (cont’d)
Psychology
The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals
Contributing Disciplines to OB Field
17. E X H I B I T 1–3 (cont’d)
Sociology
The study of people in relation to their fellow human beings
Contributing Disciplines to OB Field
18. E X H I B I T 1–3 (cont’d)
Social Psychology
An area within psychology that blends concepts from psychology
and sociology and that focuses on the influence of people on one
another
Contributing Disciplines to OB Field
19. E X H I B I T 1–3 (cont’d)
Anthropology
The study of societies to learn about human beings and their
activities
Contributing Disciplines to OB Field
20. Psychology
• Science that seeks to measure, explain, and sometimes change the
behaviour of humans and other animals. (learning theorists,
personality theorists, industrial and organizational psychologists)
• Ex. Of Contribution- fatigue, boredom, perception, emotions, training,
motivation, etc.
21. Sociology
• Study of people in relation to their fellow human beings.
• Ex. Of Contributions- group behaviour, group dynamics, design of
work teams, organizational culture, power, conflict, etc
22. Social Psychology
• Area within psychology that blends concepts from psychology and
sociology and that focuses on influence of people on one another.
• Ex. Of Contributions- change (how to implement it & how to reduce
barriers to its acceptance), attitude, communication, trust.
23. Anthropology
• Study of societies to learn about human beings and their activities.
• Ex. Of Contributions- their work on cultures and environment has
helped us understand difference in fundamental values, attitudes and
behaviour between people in different countries, etc.
24. Political Science
• Study of behaviour of individuals and groups within a political
environment.
• Ex. Of Contributions- conflict, allocation of power, manipulation of
power.
25. Historical developments of OB
⚫Industrial psychology: applyingpsychological techniquesin industrial set-up.
⚫Walter Dill Scot (1869-1955):- applyingpsychology in advertisement and
selling.
⚫Edward KStrong Jr.,:- guidance and vocational training (Strong
• – Campbell interest inventory).
⚫Hugo Munsterberg (1863-1916):- research into industrial accidents and book
“Psychology and Industrial Efficiency”
⚫W
orldW
arsand Industrial Psychology
26. Historical developments of OB…
⚫Scientificmanagement movement
⚫Frederick.W.Taylor
⦁ Four principlesof scientificmanagement:
1. Scientificallystudyeachpartof thejob anddevelopbestmethod(time-and-motion
study)
2. Selectandtrainworkersusingscientificallydevelopedmethods
3. Cooperatewithworkerstoensurethattheyusethepropermethod
4. Divideworkandresponsibility amongmanagementandworkers
⚫ Incentivesforincreasedproductivity
27. Historical developments of OB…
⚫Human relationsmovement
⚫The great depression and its implications
⚫Rise oftrade unionism
⚫Hawthorne experiments
⦁ First set of studies (1924-27): illumination studies
⦁ Second set ofstudies (1927-1932):relay assembly test room study
⦁ Third set of studies (1931-1932):bank wiring observation room study
⚫ Hawthorne effect
28. In the late 20th century
⚫OBbecominginterdisciplinary
⚫Psychology
⚫Sociology
⚫Communication
⚫Anthropology
30. Models of OB
• A model is an abstraction of reality, a simplified representation of
some real world phenomenon.
Organization system level
Group level
Individual level
31. Dependent Variables: Key factors that you want to explain or predict
and that is affected by some other factor(s).
Independent Variables: The presumed cause of some change in the
dependent variable. variables occur at the level of the individual,
group, and organization.
32. OB Variables
Dependent variable
1. Productivity
2. Absenteeism
3. Turnover
4. Organizational Citizenship behavior
5. Job satisfaction
6. Deviant work place behavior
Independent variable
1.Individual level
2.Group level
3.Organization system level
33. Dependent Variable
1. Productivity: An organization is productive if it achieves its goals &
does so by transferring inputs to outputs at lowest cost. or a
performance measure that includes effectiveness and efficiency.
• Effectiveness: means achievements of goals
• Efficiency: the ratio of effective output to the input required to
achieve it.
34. 2. Absenteeism: The failure to report to work.
3. Turnover: The voluntary and involuntary permanent withdrawal
from an organization. (cost for a typical IT company in US to replace
a programmer or system analyst has been put at $34,100).
4. Organizational Citizenship behavior: Discretionary behavior that is
not part of an employee’s formal job requirement, but that
nevertheless promotes the effective functioning of the
organization. (making constructive statements about work groups,
helping others on the teams, showing care for org. property, etc.)
35. 5. Job satisfaction: An individual’s general attitude towards his or
job or A positive feeling about one’s job resulting from an
evaluation of its characteristics.
6. Deviant work place behavior: Voluntary behaviour that
violates significant organizational norms and, in doing so, threatens
the well being of the organization or its members.
37. Independent variables
1. Individual level variables: personality etc.
2. Group level variables: Behaviour of people in groups is more
than the sum total of all the individuals acting in their own way.
People’s behaviour when they are in groups is different from their
behaviour when they are alone.
3. Organizational system level variables: Organizations are
more than the sum of their member groups.