- Organizational behavior is the interdisciplinary study of human behavior in organizational settings, drawing from psychology, sociology, and anthropology. - It examines individual, group, and organizational level factors that impact behavior and performance. The goal is to apply evidence-based theories to improve organizational effectiveness. - While organizational behavior incorporates some subjective elements, it aims to study human behavior scientifically and apply empirical findings to optimize people management in a way that benefits both individuals and organizations.

3. • The nature of Organisational
Behaviour is not a discipline in
the word sense of the term but
rather an electric field of study that integrates the behaviour
sciences in to the study of human behaviour within organisations.
• It is a multi-dimensional activity. It involves the study of abstract
ideas, such as valance and expectancy in motivation as well as the
study of concrete matters such as observable behaviour and
psychological symptoms of distress at works.

4. • The basic or inherent features of something, especially when
seen as characteristic of it.
• The innate or essential qualities or
character of a person or animal.
• Inborn or hereditary characteristics
as an influence on or determinant of personality.

5. •Derived from the Greek word
organon, which means tool or instrument,
musical instrument and organ.
•It’s musical unit of people that is structural and
managed to meet a need or to pursue collective
goals.

6. •The way in which once acts or conducts
oneself, especially towards others.
•The way in which a natural phenomenon or a
machine works or functions.

7. •It is the study of shaping the behaviour
of the organisational personnel.
•It is an applied science which
takes a systematic approach that
understands the reason behind the
behaviour and influences.

8. • A Separate Field of Study and not a Discipline Only.
• An Interdisciplinary Approach.
• Applied Science.
• A Normative Science.
• A Humanistic and Optimistic Approach.
• A Total System Approach.
 According to 6 characteristics or features

9. •Contains a message on how managers might
behave.
•Helps in building generalised models
applicable to a range of organisations or
situations.

10. Managerial Approach
Drummond
•Interpretative
•Critical
•Existence

11. • Morgan
• Hellriegel
• Slocum
• Woodman
“One way to recognise why people behave as they do at work is to view an
organisation as an iceberg. What sinks ships isn’t always what sailors can
see, but what they can’t see.”

12. Overt
•Formal aspects focus
only on the tip of the iceberg.
Covert
•It is just as important
to focus on what you can’t see.

13. • Aims objectives of the organisation.
• Formal structure.
• Task to be undertaken.
• The technology employed and methods.
• Carrying out work.
• The process of management.
• The external environment.
Every organisation has to perform successfully if it is to survive.

15. •The individual
•The group
•The organisation
•The environment
•Contrasting but related approaches

16. •Psychologists
•Sociologists
•Anthropologists

17. • Morgan identifies eight different ways of viewing organisations.
Machines
• Organisations viewed as machines function better in a stable
and protected environment.
Organisms
• Organisations operating within a turbulent and dynamic
environment require adaptable type of structure.
Brains
• Viewing organisations as brains involves thinking about the
organisation as inventive and rational and in a manner that
provides for flexibility and creative action.

18. Cultures
• This sees organisations as complex systems made up
of their own characteristic sets of ideology, values,
rituals and systems of belief and practice.
Political systems
• They are about authority, power, superior-
subordinate relationships and conflicting interests.
Psychic prisons
• Viewing organisations as psychic prisons provides an
understanding of the reality and illusions of
organisational behaviour.

19. Flux and transformation
• In order to understand the nature and social life of
organisations, it is necessary to understand the sources
and logic of transformation and change.
Instrument of domination
• Organisations are bets understood in terms of
variations in the mode of social domination and
control of their members.
A broader view of organisational behaviour
• Morgan points out that these metaphors are not fixed
categories and are not mutually exclusive.

20. • Goldthorpe
A.Individuals with an instrumental orientation define
work not as a central life issue but in terms of means to
an end.
B.Individuals with a bureaucratic orientation define
work as a central life issue.
C.Solidaristics orientation.
Work is more than just a means to an end.
Non-work activities are linked to work relationships.

21. Different work situations
• According to Bunting, although some people in
poorly-paid jobs requiring long hours do not
have any choice, for the majority there is a
degree of choice in how hard they work.
• According to Herman;
o Work has been fractured in task and sub-divided
into specialised sub-tasks or branches, creating
new kinds of work altogether.
o This discourages the development of bonds of
loyalty or employees investing themselves in their
work with the hope of long-term employment.

22. Waller suggest that work inevitably plays a key role in shaping identity and least there
you are challenging yourself, developing and learning.
“In the knowledge economy, where responsibilities morph and working hours are flexible, the
boundaries between work and free time blur, and it’s hard for many of us to tell when we’re off-duty.
It follows that if people are getting absorbed by their work-life, they expect their job to help them to
discover and develop themselves. Identity can be linked to such basics as the satisfaction of a job well
done – yet in a modern economy, work is rarely actually ‘finished’.”
• Sense of purpose
• Structure to their day
• A reason to get up in the morning

23. According to de Botton;
• Allowing our choice of work.
• Work is fun
“The recession reveals that work is hard and that, if the employer is like a
parent, then it is a rather harsh and unforgiving sort . . . So one of the benefits
of the crisis is that it enables us to lower our expectations as to what work can
deliver. Some of the greatest existential questions disappear. Simply holding
down an ordinary job and surviving comes to seem like reward enough.”

24. •Work is still a large component
of what gives meaning to
people’s lives.
•Work remains the need for
money to fulfil the necessities of
life.

25. •Importance of conversation for effective
organisational relationships.
“An individual’s orientation to work and underlying work ethic
is the strongest influence on their motivation and organisational
performance.”

27. • Informational activities – The manager constantly has to receive and
give information orally or in written.
A communication link has to be maintained
with subordinates as well as superiors for
effective functioning of an enterprise.
• Decisional activities - Managers are
continuously involved in decisions of different
kinds since the decision made by one manager
becomes the basis of action to be taken by other managers. (E.g. Sales
Manager is deciding the media & content of advertising).

28. • Inter-personal activities - Managers have to interact with superiors as well
as the sub-ordinates. They must maintain good relations with them. The
inter-personal activities include with the sub-ordinates and taking care of
the problem. (E.g. Bonuses to be given to the sub-ordinates).

29. a.

30. b.

31. c. Implications for organisational strategy
• process fairness – people want to know their interests will be
taken into account, treated with respect and consulted about
change;
• communications – an effective two-way dialogue between
employer and employee;
• management style – adopting a more ‘bottom-up’ style and
drawing on the strategic knowledge of employees;
• managing expectations – making clear what new recruits can
expect and distinguishing rhetoric from reality;
• measuring employees’ attitudes – regular monitoring of
employee attitudes and acting on the results.

32. d. Process of balancing
• Caring – demonstrating genuine concern for
individuals working in the organisation;
• Communicating – really talking about what the
company is hoping to achieve;
• Listening – hearing not only the words but also what
lies behind the words;
• Knowing – the individuals who work for you, their
families, personal wishes, desires and ambitions;
• Rewarding – money is not always necessary; a genuine
thank-you or public recognition can raise morale.

33. e. Employer–employee relationship
• The central feature of the psychological
contract.
f. Changing nature of the psychological
contract
• Employees are increasingly recognised as the
key business drivers.
• Offers a framework for monitoring employee
attitudes and priorities.

34. g. A new moral contract
• Employees abandon the stability of lifetime
employment and embrace the concept of
continuous learning and personal
development.
h. Impact on employee relations
• A subtle relationship composed of many
factors and as being often considered a key
factor in understanding employment relations,
as disappointed expectations may have a
strong impact on employee relations.

35. a. The Peter Principle
• Is an observation that the tendency in most
organizational hierarchies, such as that of a corporation,
is for every employee to rise in the hierarchy through
promotion until they reach a level of respective
incompetence. In other words, a front-office secretary
who is quite good at her job may thus be promoted to
executive assistant to the CEO for which she is not
trained or prepared for—meaning that she would be
more productive for the company (and likely herself) if
she had not been promoted.

36. Means of promotion
• Pull is an employee’s relationship – by blood,
marriage or acquaintance – with a person
above the employee in the hierarchy.
• Push is sometimes manifested by an
abnormal interest in study, vocational training
and self-improvement.
b.Parkinson’s Law
• The ‘rising pyramid’, that is, ‘Work
expands so as to fill the time available for
its completion.’

38. Globalisation – refers to organisations integrating,
operating and competing in a worldwide economy.
• Improvements in international communication facilities
leading to an increased consciousness of differences in
workplace attitudes and behaviour in other societies;
• International competitive pressure – for example, the
emergence of newly industrialised and/or free-market
nations (the Far East region and former communist bloc
countries are often viewed as examples of this
phenomenon);

39. • The spread of production methods and other business processes across nations and
regions;
• International business activity, for example: overseas franchising or licensing
agreements; outsourcing of business units to other countries (call centres provide a
topical example);
• Direct foreign investment and the activities of multinational corporations which, by
definition, operate outside national boundaries.

40. 1.Boundaryless organisation
•Francesco and Gold

41. 2. The future of globalisation
• Rugman refers to the illusion of the global company and
maintains that there is no trend towards globalisation but strong
evidence of a hardening of triad blocs and regional groups of the
EU (European Union), USA (United States of America) and
Japan.
• Child points out that globalisation is a complex phenomenon and
the term is used in so many different ways it is in danger of
losing any useful purpose.
• Schneider and Barsoux suggest that when firms have a sense of capability and previous
international experience, internationalisation is more likely to be seen as a learning
opportunity rather than as a threat.
• McLean, globalisation has ultimately and importantly altered the terms of reference and
resulted in a paradigm shift for the way organisations are managed.

42. 3. Globalisation and the EU (European Union)
• Globalisation offers great opportunities but
also challenges. Technological progress is also
transforming the way we live and work.
• Cultural environment
4. According to Dana, it is essential for people in
business to understand cultural differences, but this is
not just a matter of noting different ways but rather
rooting out the reasons behind these differences.
• Complex cultural environments require fluency
not only in words, but more importantly in
understanding what is not said – and this takes
time, patience and dedication.

43. Managing People from Different Cultures
(Organisational Behaviour Culture Bound)
Culture as understanding (Appreciation and
Effects – Intrinsic Value)
• Increased self-awareness;
• Sensitivity to difference;
• Questioning our own assumptions and knowledge;
• Lessening ignorance, prejudice and hatred.

44. Adler listed the following inbuilt dangers when
multicultural teams operate in a business setting:
• Mistrust – including stereotyping;
• Miscommunication with potential for reduced
accuracy and resultant stress;
• Process difficulties, that is failure to agree when
agreement is needed or even what constitutes
agreement when arriving at decisions.

45. • Power distance is essentially used to categorise
levels of inequality in organisations, which
Hofstede claims will depend upon management
style, willingness of subordinates to disagree with
superiors, and the educational level and status
accruing to particular roles.
• Uncertainty avoidance refers to the extent to
which members of a society feel threatened by
unusual situations.

46. • Individualism describes the relatively individualistic or
collectivist ethic evident in that particular society.
• Masculinity is the final category suggested by
Hofstede. This refers to a continuum between
‘masculine’ characteristics, such as assertiveness and
competitiveness, and ‘feminine’ traits, such as caring,
a stress upon the quality of life and concern with the
environment.
• Confucian work dynamism. It indicates the extend to
which a society is more future /long-term orientated
or more past or short-term orientated.

47. a. Seven areas in which cultural differences may affect aspects of
organisational behaviour:
• Universalism versus particularism.
• Individualism versus communitarianism.
• Specific versus diffuse.
• Neutral versus emotional.
• Achievement versus ascription.
• Sequential time versus synchronous time.
• Internal direction versus outer direction.

48. b.The high- and low-context cultures framework
• Language of time;
• Language of space;
• Language of things;
• Language of friendships;
• Language of agreements.

49. The features of ‘high’ context societies, which incorporate Asian,
African and Latin American countries, include:
• a high proportion of information is ‘uncoded’ and internalised by the
individual;
• indirect communication styles . . . words are less important;
• shared group understandings;
• importance attached to the past and tradition;
• ‘diffuse’ culture stressing importance of trust
and personal relationships in business.

50. ‘Low’ context societies, which include the USA,
Australia, Britain and the Scandinavian countries,
exhibit contrasting features including:
• a high proportion of communication is ‘coded’ and
expressed;
• direct communication styles . . . words are paramount;
• past context is less important;
• ‘specific’ culture stressing importance of rules and
contracts.

51. Emic and Etic refer to two kinds of
field research done and viewpoints
obtained:
• Emic, from within the social group (from
the perspective of the subject) and
• Etic, from outside (from the perspective of
the observer).

52. Keith Grint, a Sociologists
• Sees both positive and negative consequences of
aspects of globalisation. While noting that ‘at
last we are approaching an era when what is
common between people transcends that which
is different; where we can choose our identity
rather than have it thrust upon us by accident of
birth
• We are heading for global convergence where
national, ethnic and local cultures and identities
are swamped by the McDonaldization . . .
and/or Microsoftization of the world.

53. Organisational behaviour can be regarded as the key to the whole area of
management.
• OB is the study of learning how to predict human behavior and, then, apply it in
some useful way to make the organization more effective. It helps in the effective
utilization of people working in the organization guarantees the success of the
organization.
• OB helps the managers to understand the basis of motivation and what he should
do to motivate his subordinates.
• OB helps to maintain cordial industrial relations which help to increase the overall
productivity of the industry.
• Helps greatly in improving bur inter-personal relations in the organizations.
• Helps managers apply appropriate motivational techniques in accordance with the
nature of individual employees who exhibit a learning difference in many respects.

54. Critical reflection
• ‘The study of organisational behaviour is really
an art that pretends it is a science and produces
some spurious research findings in a vain attempt
to try to prove the point.’ How far do you agree with this
statement? Do you think the study of organisational behaviour is
too subjective ever to be a science? What is the value in the study
of organisational behaviour?

55. Synopsis
• Organizational Behavior is the study and application of
knowledge about how people, individuals, and groups act in
organizations. It does this by taking a system approach.
• That is, it interprets people-organization relationships in terms of
the whole person, the whole group, the whole organization, and
the whole social system.
• Its purpose is to build better relationships by achieving human
objectives, organizational objectives, and social objectives. OB
encompasses a wide range of topics, such as human behavior,
change, leadership, teams, etc.
• Organizational behavior has a great impact on individuals and also
in organizations which cannot be ignored. In order to run the
businesses effectively and efficiently, the study of organizational
behavior is very essential.