Introduction of Organisation Behaviour Nature and Scope of OB Challenges and opportunities for OB Organization Goals Models of OB Impact of Global and Cultural diversity on OB.

1. ORGANISATION BEHAVIOUR
Prepared by Ms. Shery Asthana
Asst. Prof. (Greater Noida Institute of
Management)

2. Topic
•Introduction of Organisation Behaviour
•Nature and Scope of OB
•Challenges and opportunities for OB
•Organization Goals
•Models of OB
•Impact of Global and Cultural diversity on OB.

3. Introduction of Organisation Behaviour
No two individuals are likely to behave in the same manner in a particular work
situation. It is the predictability of a manager about the expected behaviour of an
individual. There are no absolutes in human behaviour. It is the human factor that
is contributory to the productivity hence the study of human behaviour is
important.
• Organisation Behaviour studies human behaviour at individual level, group level
and organisational level.
• An organisation is a social system of people who are structured and managed to
meet some goal.
• Organisation is ongoing process and its structure determine the relationship. The
relationship between the functions and positions.
• Structure also subdivided roles, responsibility and authority to carry out the task.
Organisations are open systems which are affected by the environment outside its
boundary.
• Stephen P. Robbins states as "Organizational Behaviour studies the impact that
individuals, groups and structure have on behaviour within organization for the
purpose applying such knowledge toward improving an organization
effectiveness."
• According to Davis and Newstram, “Organisational behaviour is the study and
application of knowledge about how people act within organisations.”

4. Organisation:- an organized group of people with a particular
purpose, such as a business or government department.
An organization is a group of people who work together, like a
neighborhood association, a charity, a union, or a corporation.
Organization is also the act of forming or establishing something
(like an organization). It can also refer to a system of arrangement
or order, or a structure for classifying things.
the way in which one acts or conducts oneself, especially towards
others.
Behaviour:-the way in which one acts or conducts
oneself, especially towards others.

5. Element of Organisation Behaviour
• People:- People make up the internal social system of the
organization. That system consists of individuals and groups and
groups may be large and small, formal and informal. The organization
is a combination of a group of people, managers must handle the
people in the right direction.
This is very challenging to guide people or employees who have
different educational backgrounds, talent, and perspectives. So
managers must understand, predict and control the people.
They build up relationship among the employees and motivate
themselves.
• Structure:- The structure defines the formal relationship and use of
people in the organization.
They are related in a structural way so that their work can be
effectively coordinated. Because there is no organization can be
successful without proper coordination.

6. • Technology:- Technology provides the resources with which people work
and affects the tasks that they perform. They cannot accomplish work
with their bare hands. The technology used has a significant influence on
working relationships.
The great benefit of technology is that it allows people to do more and
better work, but it also restricts people in various ways. It has cost as well
as benefits.
• Environment:- All organizations operate within an internal and an
external environment. A single organization does not exist alone.
An organization is a part of a lager system that contains many other
elements, such as government, the family, and other organizations.
Numerous changes in the environment create demands on organizations.

7. Nature of O.B
1. An Interdisciplinary Approach
Organizational behaviour is essentially an interdisciplinary approach to study human
behaviour at work. It tries to integrate the relevant knowledge drawn from related
disciplines like psychology, sociology and anthropology to make them applicable for
studying and analysing organizational behaviour.
2. An Applied Science
The very nature of O.B. is applied. What O.B. basically does is the application of various
researches to solve the organizational problems related to human behaviour. The basic
line of difference between pure science and O.B. is that while the former concentrates of
fundamental researches, the latter concentrates on applied researches. O.B. involves
both applied research and its application in organizational analysis. Hence, O.B. can be
called both science as well as art.
3. A Normative Science
Organizational Behaviour is a normative science also. O.B. prescribes how the findings
of applied researches can be applied to socially accepted organizational goals. Thus,
O.B. deals with what is accepted by individuals and society engaged in an organization.

8. 4.Cause and Effect Relationship
Human behaviour is generally taken in terms of cause and effect relationship
and not in philosophical terms. It helps in predicting the behaviour of
individuals. It provides generalizations that managers can use to anticipate the
effect of certain activities on human behaviour.
5 Dynamic Approach
The dynamic approach is one that integrates all the variables, affecting
organizational functioning. The dynamic approach has been developed by the
behavioural scientists to analyse human behaviour in view of his/her socio-
psychological framework. Man's socio-psychological framework makes man a
complex one and the systems approach tries to study his/her complexity and
find solution to it.
6. A Humanistic and Optimistic Approach
Organizational Behavior applies a humanistic approach towards people
working in the organization. It deals with the thinking and feeling of human
beings.OB is based on the belief that people have an innate desire to be
independent, creative and productive.
It also realizes that people working in the organization can and will actualize
these potentials if they are given proper conditions and environments.

9. Goals of Organizational Behaviour
The four goals of organizational behaviour are to describe, understand, predict
and control.
1. To Describe: The first objective is to describe how people behave
under various conditions. For example, as a manager, I have information about
a particular junior officer that he comes office in late and leaves the office
early.
2. To understand: The second goal of organizational behaviour is to
understand why people behave as they do. Managers have to
understand the reasons behind a particular action. For example, as a
manager, I must find out the reason why the junior officer is coming late
and going earlier.
3. To predict: Predicting future behaviour of employee is another
goal of organizational behaviour. Usually, managers would have the
capacity to predict why the employees are committed to the
organization or not. For instance, I have to realize why he wants to leave
my organization, how I can hold the officer in my organization, what
should be done by me in this situation or what my role is etc.

10. 4. To control: The final goal of organizational behaviour is to control
and develop a friendly atmosphere for the organization. Since managers
are responsible for the overall performance of an organization, they must
develop workers’ teamwork, skill and commitment. Managers should take
necessary action for themselves. In the above case, I can increase the
financial benefits of the officer if it is not satisfactory for him or I can help
him to solve his personal problem, or I can negotiate him to solve any
organizational problem.
Objective of Organisation Behaviour
• Job Satisfaction
• Finding the Right People
• Organizational Culture
• Leadership and Conflict Resolution
• Understanding the Employees Better
• Understand how to Develop Good Leaders
• Develop a Good Team
• Higher Productivity

11. Case study
Tony Stark had just finished his first week at Reece Enterprises and decided
to drive upstate to a small lakefront lodge for some fishing and relaxation.
Tony had worked for the previous ten years for the O’Grady Company, but
O’Grady had been through some hard times of late and had recently shut
down several of its operating groups, including Tony’s, to cut costs.
Fortunately, Tony’s experience and recommendations had made finding
another position fairly easy. As he drove the interstate, he reflected on the
past ten years and the apparent situation at Reece.
At O’Grady, things had been great. Tony had been part of the team from day
one. The job had met his personal goals and expectations perfectly, and Tony
believed he had grown greatly as a person. Hi s work was appreciated and
recognized; he had received three promotions and many more pay increases.
Tony had also liked the company itself. The firm was decentralized, allowing
its managers considerable autonomy and freedom. The corporate Culture
was easygoing. Communication was open. It seemed that everyone knew
what was going on at all times, and if you didn’t know about something, it
was easy to find out.

12. The people had been another plus. Tony and three other managers
went to lunch often and played golf every Saturday. They got along
well both personally and professionally and truly worked together as a
team. Their boss had been very supportive, giving them the help they
needed but also staying out of the way and letting them work.
When word about the shutdown came down, Tony was devastated.
He was sure that nothing could replace O’Grady. After the final closing
was announced, he spent only a few weeks looking around before he
found a comparable position at Reece Enterprises.
As Tony drove, he reflected that "comparable" probably was the
wrong word. Indeed, Reece and O’Grady were about as different as
you could get. Top managers at Reece apparently didn’t worry too
much about who did a good job and who didn’t. They seemed to
promote and reward people based on how long they had been there
and how well they played the never-ending political games.

13. Maybe this stemmed from the organization itself, Tony pondered. Reece was a bigger
organization than O’Grady and was structured much more bureaucratically. It seemed
that no one was allowed to make any sort of decision without getting three signatures
from higher up. Those signatures, though, were hard to get. All the top managers
usually were too busy to see anyone, and interoffice memos apparently had very low
priority.
Tony also had had some problems fitting in. His peers treated him with polite
indifference. He sensed that a couple of them resented that he, an outsider, had been
brought right in at their level after they had had to work themselves up the ladder. On
Tuesday he had asked two colleagues about playing golf. They had politely declined,
saying that they did not play often. But later in the week, he had overheard them
making arrangements to play that very Saturday.
It was at that point that Tony had decided to go fishing. As he steered his car off the
interstate to get gas, he wondered if perhaps he had made a mistake in accepting the
Reece offer without finding out more about what he was getting into.

14. Importance of Organizational Behaviour
1. Understanding the relationship between an organization and
its employees: The study of organizational behaviours helps a better
understanding of the relationship between an organization and its
employees, which helps in the development of better human resource
strategies in improving the work environment, employee loyalty and
increasing the overall value of human capital for the organization.
2. Motivating employees: The knowledge of organizational
behaviours aid managers understand and inspire their employees
better. Managers with the study of organisational behaviour implement
different motivational tools according to individual needs, resulting in
better performance of the organization.
3. Improvement in industrial / labour relations: Organizational
behaviours helps in understanding the cause of a problem, predicts its
future course and regulates its results. As a result, the manager can
maintain a better relationship with his employees by solving any
problem.

15. 4. Effective use of human resources: Knowledge of organizational
behaviours helps managers manage their employees effectively and
efficiently, motivates and induces them to higher efficiency and productivity
through better understanding and analysis of human behaviours.
5. Predicting human behaviours: This is probably the most important
reason for studying organizational behaviours in management. Knowledge
of organizational behaviours prepares students to become better manager
by becoming a student of human behaviours from management perspective
and thereby contributing to organizational effectiveness and profitability.

16. Models of Organisation Behaviour
Sr.No. BASIS AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL
1. BAsic of model Power Economic
Resources
Leadership
Support
Partnership
2. Managerial
Orientation
Authority Money Support TeamWork
3. Employee
Orientation
Obedience Security &
Benefits
Job Performance Responsible
Behaviour
4. Employee
Psychological
Result
Dependence on
Boss
Dependence on
Organisation
Participation Self Discipline
5. Employee Needs
met
Subsistence Security Social need &
Status recognition
Self
Actualization
6. Performance
result
Minimum Passive Co-
operation
Awakened Moderate
Enthusiasm

17. Autocratic model
Autocratic model is the model that depends upon strength, power and formal authority.
In an autocratic organisation, the people (management/owners) who manage
the tasks in an organisation have formal authority for controlling the employees who work
under them. These lower-level employees have little control over the work function. Their
ideas and innovations are not generally welcomed, as the key decisions are made at the
top management level.
The guiding principle behind this model is that management/owners have
enormous business expertise, and the average employee has relatively low levels of skill
and needs to be fully directed and guided. This type of autocratic management system
was common in factories in the industrial revolution era.
One of the more significant problems associated with the autocratic model is
that the management team is required to micromanage the staff – where they have to
watch all the details and make every single decision. Clearly, in a more modern-day
organisation, where highly paid specialists are employed an autocratic system becomes
impractical and highly inefficient.
The autocratic model is also a detractor to job satisfaction and employee morale.
This is because employees do not feel valued and part of the overall team. This leads to a
low-level of work performance. While the autocratic model might be appropriate for some
very automated factory situations, it has become outdated for most modern-day
organisations.

18. Custodial Model
a. The custodial model is based around the concept of providing
economic security for employees – through wages and other
benefits – that will create employee loyalty and motivation.
b. In some countries, many professional companies provide health
benefits, corporate cars, financial packaging of salary, and so on –
these are incentives designed to attract and retain quality staff.
c. The underlying theory for the organisation is that they will have a
greater skilled workforce, more motivated employees, and have a
competitive advantage through employee knowledge and
expertise.
d. One of the downsides with the custodial model is that it also
attracts and retains low performance staff as well. Or perhaps
even deliver a lower level of motivation from some staff who feel
that they are “trapped” in an organisation because the benefits
are too good to leave.

19. Supportive model
1. Unlike the two earlier approaches, the supportive model is
focused around aspiring leadership.
2. It is not based upon control and authority (the autocratic
model) or upon incentives (the custodial model), but instead
tries to motivate staff through the manager-employee
relationship and how employees are treated on a day-to-day
basis.
3. Quite opposite to the autocratic model, this approach states
that employees are self-motivated and have value and insight
to contribute to the organisation, beyond just their day-to-day
role.
4. The intent of this model is to motivate employees through a
positive workplace where their ideas are encouraged and
often adapted. Therefore, the employees have some form of
“buy-in” to the organisation and its direction.

20. Collegial model
a. The collegial model is based around teamwork – everybody
working as colleagues (hence the name of the model).
b. The overall environment and corporate culture need to be
aligned to this model, where everybody is actively
participating – is not about status and job titles –
everybody is encouraged to work together to build a better
organisation.
c. The role of the manager is to foster this teamwork and
create positive and energetic workplaces. In much regard,
the manager can be considered to be the “coach” of the
team. And as coach, the goal is to make the team perform
well overall, rather than focus on their own performance,
or the performance of key individuals.
d. The collegial model is quite effective in organisations that
need to find new approaches – marketing teams, research
and development, technology/software etc.

21. Challenges and Opportunities for Organizational
Behaviour
1. Enhancing Quality And Productivity
Maintaining the quality of its products is a challenging task for every
organisation. It is the driving force through which companies are able to attract
more & more customers & hold them for the long term.
Quality is simply the degree to which products are able to satisfy the customer’s
needs & wants. It is the main factor which affects the customer satisfaction level.
Better quality products more easily satisfy customer needs & wants.
Every organisation should focus on quality factor to increase its customer base.
The main dimensions covered under the quality factors are Features, Reliability,
Durability, Performance, Responses & Reputation.
Managers are focusing more & more to meet the quality expectations of
customers. In order to improve quality & productivity, they are even engaging
programs like Total Quality Management (TQM) & Reengineering. These two
techniques mainly focus on customer needs & continuously make efforts to
increase the customer satisfaction level. These techniques too involve extensive
employee involvement in order to increase productivity.

22. 2. Working With People In Different Cultures
Every organisation has employees who differ from each other in terms of race,
culture, religion, gender, and ethnicity. Employing person with distinct cultures
help organisations in getting fresh & new talents and potentialities. Maintaining
peace & cooperation among its different employees is a challenging task for every
organisation.
Every employee working in an organisation wants to retain their own values &
cultures although they are working in the same company where they need to
follow some rules & regulations.
Same decision of organisation may be welcomed & accepted by people of one
culture & opposed by people from another culture. Therefore managers need to
treat every employee differently as per their individual differences in order to
ensure cooperation & increase productivity.
3. Improving The Skills Of People
Skills of people need to improved & upgraded as per the requirements from time
to time. In the business area, there are always lots of changes which occur at a
faster rate in terms of technology, environment & structure.
These changes need to be addressed in order to achieve efficiency & increase
productivity. Employees & other executives of the organisation should possess the

23. required skills in order to easily adapt to these changes.
Failure to adopt these changes will make it difficult to achieve targeted goals
timely. There are basically 2 sets of employee skills that are technical &
managerial skills. Managers should, therefore, focus on designing a proper
performance appraisal program consisting of various training & development
programmes for their employees. This will help them in improving their skills.
4. Empowering People
Empowerment of employees is another challenging task for every
organisation. Productivity of employees generally gets reduced when kept
under stringent rules & regulations as compared when they are allotted some
freedom.
Delegating appropriate responsibility & power to employees at different level
is important & challenging task for managers. Employees should be allowed &
encouraged to participate in various work-related decisions. This will improve
employer-employee relations in the organisation & also the commitment of
employees to work.

24. 5. Stimulating Innovation And Change
Today every business needs to focus on innovative ideas in order to bring
changes to beat the tough competition in the market. Business should always
focus to differentiate their product from their competitor’s product. It will
help them in getting more & more customers.
Business will fail & eventually forced to shut down if unable to keep flexibility
as per market demand. It should always bring innovative products & services
to market with minimum cost. For example, MI is presently beating the tough
competition in the market by presenting a wide range of innovative products
at a minimised cost.
6. Dealing With Globalisation
Today globalisation of business is something that is increasing worldwide at a
great pace. Now the operations of the business are not limited to one
particular location or nation, but they are performed internationally.
Business nowadays are conducted beyond the national boundary of one
country & have their presence in different countries of the world.
Products of companies are selling more by various online portals over the
internet rather than by their physical outlets. Faster transportation &

25. communication network have an efficient role in providing services to
customers via online portals.
Online presence of companies becomes the most emerging requirement of
every business. For example, Amazon conducts the majority of its business
operations worldwide via its internet portals rather its physical outlets.
7. Improving Ethical Behaviour
Better ethical behaviour in working culture is a must for an organisation to
increase its productivity. It should always be ensured that employees behave
positively & abide by all rules & regulations of the organisation. Healthy
working environment for employees with minimal ambiguity should be
created.
This will help in increasing their productivity & reducing conflicts. Clear cut
instruction should be given regarding what is right behaviour & what is
wrong. All unethical practices like the use of insider information for personal
gains should be avoided. Managers should organise various workshops,
seminars & training programmes in order to improve ethical behaviour of
employees.

26. Cultural Diversity
• Cultural diversity is the term used to describe many different cultures co-
existing within one larger culture.
• Cultural diversity (also known as multiculturalism) is a group of diverse
individuals from different cultures or societies.
• Usually, cultural diversity takes into account language, religion, race,
gender, age and ethnicity.
• The group is diverse if a wide variety of groups are represented. Cultural
diversity has become a hot-button issue when applied to the workplace.
• People from various backgrounds have different perspectives. Their
contribution allows the group to look at problems from all angles. The
results are often innovative.
• More important, it must be integrated into company practices. It takes
time and a commitment to celebrate diversity.
• Workers must be willing to be open-minded and non-judgmental about
the value of differences.
• These changes need to be addressed in order to achieve efficiency &
increase productivity.

27. • Employees & other executives of the organisation should possess
the required skills in order to easily adapt to these changes.
• Failure to adopt these changes will make it difficult to achieve
targeted goals timely.
• There are basically 2 sets of employee skills that are technical &
managerial skills.
• Managers should, therefore, focus on designing a proper
performance appraisal program consisting of various training &
development programmes for their employees.
• This will help them in improving their skills.
Advantages of Cultural Diversity:-
• Learning-Diversity in any situation is a chance for others to learn
about people who are different from themselves. In business, this
can aid in the growth of individual employees and for the business
as a whole by exposing them to new ideas and perspectives.6
Interactions between co-workers of different backgrounds can
help reduce prejudice and make it easier for them to work
together.

28. Experience and Knowledge-The experiences a person has often are impacted
by their background and cultural traits, which allows each employee to bring
a unique set of skills and strengths into the business. Teams that have
members with different skill sets tend to be able to combine their strengths
to offset any weaknesses that prevent them from being efficient. Together,
this can boost their productivity and make them adaptable to changes.
International Skills-With globalization become an integral part of business,
it's more important than ever for companies to be able to interact in the
global market.7 The diversity in a business may include employees who speak
other languages and can work on customers and business partners directly.
Diversity can also help when a company has multiple branches throughout
the world, as the traits of an employee's cultural background can help them
navigate in those locations.
Reputation-Since the diversity of the workforce is increasing, job seekers
want to know that the businesses they are looking to work with can
effectively handle issues of diversity. Employers who have a reputation for
being fair to workers from all walks of life and having no tolerance for
discrimination are far more appealing than employers who do not. It should
be noted that those are also traits that other companies look for when the

29. Disadvantages of Cultural Diversity:-
Discrimination-Despite the business' best efforts, instances of discrimination can still
occur with diversity. They are often based in prejudices, stereotyping, and
misinformation and can have serious consequences for both those involved and the
company itself. It is the business' responsibility to establish what the policies are in
regards to discrimination and to ensure that they follow any and all anti-discrimination
laws.
Poor Interaction-It is not unheard of for workers of different backgrounds to clash
culturally. A lack of understanding or misconceptions about a particular demographic can
generate a ton of issues between the affected employees and their interactions. It
damages communication and brings productivity and group cohesiveness down. In
serious cases, it can create a hostile environment that damages the workplace culture
and the business' organizational behavior regardless of if it's isolated to a few people.
Authority and Training-While it's a good that business take the initiate in training their
staff on diversity, it can be problematic if mishandled. There may be some resistance to
diversity from staffers and they may see training as forcing them to accept unnecessary
(to them) changes. This may result in backlash and a breakdown in the relationship
between staff and management. There's also no guarantee that those in places of
authority will follow through on what they learned in training-strong-held beliefs and
prejudices can be difficult to break through. As a result, diversity issues like
discrimination can be left unresolved or worsened by someone with authority abusing
their power.

30. IMPACT OF GLOBALIZATION ON ORGANISATIONAL BEHAVIOUR
• Multinational corporations developed operations worldwide and companies
developed joint ventures with foreign partners.
• Workers increasingly chased job opportunities across national borders.
• As organizations have become more global , their workforce has become
culturally diverse.
• Globalization has created a large shift in organizational behavior as increasing
diversity has brought together people of different backgrounds with different
values, cultures and beliefs all working together for common objective.
Challenges of Globalization
• Workforce diversity
• Unsupportive and hostile work environment
• Fears of discrimination
• Resistance to change
• Organizations are becoming more and more heterogeneous.
• One of the most important and broad based challenges currently facing
organization is adapting people who are different.