Organizational behavior is the study of how individuals and groups act within organizations. It examines how their behaviors impact organizational effectiveness. The document traces the historical roots of OB from scientific management to classical organization theory to the human relations movement. It defines key OB concepts like formal vs informal organizations and discusses individual differences in areas like personality, intelligence, attitudes and perception. The goals and scope of OB are explained along with topics like groups, leadership, motivation and organizational structure.

1. Organizational
Behaviour
Presented by : Ashutosh Verma

2. What is an Organization?
• “An organization is a collection of people working together in a
coordinated and structured fashion to achieve one or more
goals.”

3. Formal Organization
The Formal Organization is a system of well-defined
jobs, each bearing a definite measure of authority,
responsibility and accountability.
Louis Allen
Formal Organization is a system of consciously
coordinated activities of two or more persons toward a
common objective.
Chester Barnard

4. Features
It is deliberately designed by the top management
It places more emphasis on work to be performed than
interpersonal relationships among the employees.
It specifies the relationships among various job positions and
the nature of their inter-relationship.
It lays down rules and procedures essential for achievement
of objective
Efforts of various departments are coordinated, interlinked and
integrated through the formal organization.

5. Informal Organization
An Informal organization is an aggregate of
interpersonal relationships without any conscious
purpose but which may contribute to joint results.
Chester Barnard
Informal organization is a network of interpersonal
relationship that arise when people associate with
one another .
Keith Davis

6. Features
Originates from within the formal organization as a result of
personal interaction among employees.
The standards of behavior evolve from group norms.
Independent channels of communication without
specified direction of flow of information are developed by
group members.
Emerges spontaneously and is not deliberately created
by the management.

7. Organizations role in Society
• Organizations exist to allow accomplishment of work that
could not be achieved by people alone.
• As long as the goals of an organization are appropriate,
society will allow them to exist and they can contribute to
society.

8. The Nature of the Organizational Environment
• The external environment is everything outside an
organization that might affect it.
• The internal environment consists of conditions and
forces within the organization.

9. Organizational Behaviour
What is it?
Study
of
Human Behaviour
Group
Behaviour
Organizational
Behaviour
Individual
Behaviour

10. Organizational Behaviour ( Defined)
• “OB 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 toward improving an organization’s
effectiveness.”
• - Stephen P. Robbins.
“Organizational behaviour is the study and application of knowledge about
the how people – as individuals and a groups – act within organization. It
strives to identify ways in which people can act more effectively.”
-Keith Davis
“Organizational behaviour can be defined as the understanding, prediction
and management of the human behaviour affect the performance of the
organizations.
- Luthans
• OB is concerned with what people do in the organization & how their
behaviour affects the organizational performance

11. The Historical Roots of Organizational Behavior
• Scientific Management Era (early 1900s)
• Frederick W. Taylor
• Studied the efficiency and productivity of individual workers.
• Systematically studied jobs .
• Promoted standardized job performance methods.
• Implemented piece-rate based incentive pay systems.
• Taylor’s innovations boosted productivity markedly.
• Other Pioneers
• Frank and Lillian Gilbreth
• Henry Gantt
• Harrington Emerson

12. Scientific Management
• Positive Attributes
• Facilitated job specialization and mass production.
• Demonstrated to managers their role in enhancing performance and
productivity.
• Negative Attributes
• Labor opposed scientific management because its explicit goal was
to get more output from workers.
• Critics argued that Taylor’s methods and ideas would dehumanize
the workplace and reduce workers to little more than drones.
• Theorists later argued that Taylor’s views of employee motivation
were inadequate and narrow.

13. The Historical Roots of Organizational Behavior
• Classical Organization Theory
• This perspective was concerned with structuring organizations
effectively.
• Whereas scientific management studied how individual workers could
be made more efficient, organization theory focused on how a
large number of workers and managers could be organized most
effectively into an overall structure.

14. Major Contributors to Classical Organization Theory
• Henri Fayol
• French executive and engineer.
• Max Weber
• German Sociologist.
• Proposed a “bureaucratic” form of structure based on logic,
rationality, and efficiency that was assumed to be the most efficient
(universal) approach to structuring for all organizations.

15. • The Hawthorne Studies (1927–1932)
• Focused attention on the role of human behavior in the workplace.
• Led directly to the emergence of organizational behavior as a field of
study.
• Involved two studies conducted by Elton Mayo at
Western Electric’s plant near Chicago:
• The effects of lighting on productivity.
• The effectiveness of a piecework incentive system.
• The studies yielded surprising results:
• In the lighting study, productivity went up because the workers were
singled out for special treatment.
• In the incentive system experiment, social pressures caused the
workers to vary their work rates.
• As a result of the Hawthorne studies, researchers concluded
that the human element in the workplace was more important
than previously thought.

16. The Emergence of Organizational Behavior
• The Human Relations Movement
• People respond primarily to their social environment.
• Motivation depends on social, not economic needs.
• Satisfied employees work harder than dissatisfied employees.
• Douglas McGregor – Theory X and Theory Y
• Abraham Maslow – Hierarchy of needs
• Toward Organizational Behavior: The Value of People
• Organizational behavior reached maturity as a field of study in the
late 1950s .

17. Nature of Organizational Behaviour
Psychology
Sociology
Social
Psychology
Anthropology
Many behavioral sciences
have contributed to the
development of
Organizational
Behavior

18. Psychology
The science that seeks to measure, explain, and
sometimes change the behavior of humans and other
animals.
•Unit of Analysis:
• Individual
•Contributions to OB:
• Learning, motivation, personality, emotions, perception
• Training, leadership effectiveness, job satisfaction
• Individual decision making, performance appraisal attitude
measurement
• Employee selection, and work stress

19. Social Psychology
An area within psychology that blends concepts from
psychology and sociology and that focuses on the
influence of people on one another.
•Unit of Analysis:
• Group
•Contributions to OB:
• Behavioral change
• Attitude change
• Communication
• Group processes
• Group decision making

20. Sociology
Unit of Analysis:
• -- Organizational System
• Contributions to OB:
• Group dynamics
• Work teams
• Communication
• Power
• Conflict
• Intergroup behavior
• Organizational change
• Organizational culture
The study of people in relation to their fellow
human beings.

21. Anthropology
Unit of Analysis:
• -- Organizational System
• Contributions to OB:
• Organizational culture
• Organizational environment
• Comparative values
• Comparative attitudes
• Cross-cultural analysis
The study of societies to learn about
human beings and their activities.

22. Goals of OB
Explanation
If we are to understand a phenomenon, we must begin by trying to
explain it. We can then use this understanding to determine a
cause.
Prediction
It seeks to determine what outcomes will result from a given action.
Control
The control objective is frequently seen by manager as the most
valuable contribution the OB makes toward their effectiveness on
the job.

23. Relevance of OB in today’s Scenario/ Challenges &
opportunities for OB
• Responding to Globalization
• Managing Workforce Diversity
• Improving Quality and Productivity
• Improving Customer Service
• Improving People Skills
• Stimulating Innovation and Change
• Coping with “Temporariness”
• Working in Networked Organizations
• Helping Employees Balance Work-Life Conflicts
• Creating a Positive Work Environment
• Improving Ethical Behavior

24. GROUPS
ORGANIZATION
STRUCTURE
INDIVIDUALS
Personality
Leadership
Motivation
Perception
Team work
Group
Dynamics
Scope of Organizational Behaviour
Organization
Design
Job Design

25. Scope of Organizational Behaviour
 Impact of personality on performance
 Motivation of employees of organization
 Leadership
 Structure of teams and groups
 Perception
 Development of the soft Skills
 Organizational structures: Their Study and Development
 Enhancement of Individual & Organizational development
 Individual behaviour, Group behaviour, power and politics,
attitude and learning.
 Organization Design
 Job design
 Culture and Environment factors
 Management of change, conflict and stress
 Organizational development
 Study of emotions

26. Individual differences
• Individual differences are the personal attributes
that vary from one person to another.
• It can be physical, psychological or emotional
• It characterizes you…. make you Unique,
• Personality , attitude and emotion plays major role
We are not all the same..
• Lots of research looks at the
“typical” or “average” person
• But what about unusual people?
• Psychologists of individual
differences study what makes
people DIFFERENT

27. What makes us unique?
• Personality
• Intelligence
• Moral values
• Mental health
• Race
• Culture
• Gender

28. Why Individual Differences Are Important:
• Individual differences have a direct effect on behavior
• People who perceive things differently behave differently
• People with different attitudes respond differently to directives
• People with different personalities interact differently with
bosses, coworkers, subordinates, and customers

29. Why Individual Differences Are Important:
• Individual differences help explain:
• Why some people embrace change and others are fearful of
it
• Why some employees will be productive only if they are
closely supervised, while others will be productive if they are
not
• Why some workers learn new tasks more effectively than
others

30. Attraction-Selection-Attrition (ASA) Cycle
• Different people are attracted to different careers and
organizations as a function of their own:
• abilities
• interests
• personalities

31. Attraction-Selection-Attrition (ASA) Cycle
• Organizations select employees on the basis of the
needs the organization has
• skills and abilities
• individual attributes such as values and personality

32. Attraction-Selection-Attrition (ASA) Cycle
• Attrition occurs when:
• individuals discover they do not like being part of the
organization and elect to resign, or
• the organization determines an individual is not succeeding
and elects to terminate

33. Each phase of the ASA cycle is significantly
influenced by the individual differences of each
person
Effective managerial practice requires that individual
behavior differences be recognized, and when
feasible, taken into consideration while carrying out
the job of managing organizational behavior.

34. Individual Differences in the Workplace
Ability and Skills AttitudesPerception
Personality
Work
Behavior• Productivity
• Creativity
• Performance
Individual Differences

35. The Basis for Understanding Work
Behavior:
• To understand individual differences a manager must:
1. observe and recognize the differences
and
2. study relationships between variables that influence
behavior

36. Abilities and Skills
• Ability – a person’s
talent to perform a
mental or physical
task
• Skill – a learned
talent that a person
has acquired to
perform a task
Key Abilities
Mental Ability
Emotional
Intelligence
Tacit Knowledge

37. Attitudes
• Are determinates of behavior because they are
linked with perception, personality, feelings, and
motivation
• Attitude – a mental state of readiness
• learned and organized through experience
• exerting a specific response to people, objects, and situations
with which it is related

38. Attitudes: Implications for the Manager
1. Attitudes are learned
2. Attitudes define one’s predispositions toward given
aspects of the world
3. Attitudes provide the emotional basis of one’s
interpersonal relations and identification with
others
4. Attitudes are close to the core of personality

39. “Perception refers to the interpretation of what we take in
through our senses.
It involves deciding which information to notice, how to
categorize that information, and how to interpret it within the
framework of our existing knowledge – shape opinions,
decisions and actions.
First law of human behavior:
“People are different. What one person considers a golden
opportunity another considers a threat.”
Perception

40. • People perceive the world uniquely
• Differences in perceptions can cause problems
• Communication
• Conflict
• Motivation
• Judgment
• Decision Making
Perception

41. PERSONALITY
Personality
The sum total of ways in which an individual reacts
and interacts with others.
Personality Traits
Enduring characteristics
that describe an
individual’s behavior.
Personality
Determinants
• Heredity
• Environment
• Situation

42. INTELLIGENCE
The capacity of an individual to act purposefully , think rationally
and to deal effectively with the environment
- Wechsler
The ability to learn from experience, solve problems, and use
knowledge to adapt to new situations.

43. INTELLIGENCE TESTING
• Alfred Binet and Theodore Simon set out to
figure out a concept called a mental age (what
a person of a particular age should know).
• They discovered that by discovering
someone’s mental age they can predict
future performance.
• Hoped they could use test to help children, not
label them.

44. Stanford Binet Test
Lewis Terman adapted Binet’s test
for American school children and
named the test the Stanford-
Binet Test. following formula of
Intelligence Quotient (IQ) was
given.

45. Stanford-Binet IQ Test
• This test measures things that are necessary for school success
• Understanding and using language, memory, the ability to follow
instructions, and computational skills
• Binet’s test is a set of age-graded items
• Binet assumed that children’s abilities increase with age
• These items measure the person’s “mental level” or “mental age”
• Adaptive Testing
• Determine the age level of the most advanced items that a child could
consistently answer correctly
• Children whose mental age equal their actual or chronological age
were considered to be of “regular” intelligence

46. Another test used frequently :Wechsler Intelligence
Scale
• Wechsler Intelligence Scale for Children: (WISC-III)
• Used with children 6 to 16
• Wechsler Adult Intelligence Scale- (WAIS-III)
• Used with people 17 and older

47. WISC-III
• Provides a profile of someone’s strengths and weaknesses
• Each test is made of 12 parts
• Each part begins with the simplest questions and progresses
to increasingly difficult ones
• Performance Scale (6 parts)
• Spatial and perceptual abilities
• Measures fluid intelligence
• Verbal Scale (6 parts)
• General knowledge of the world and skill in using language
• Measures crystallized intelligence

48. • Performance IQ is based on:
• Coding
• Copying marks from a code; visual rote learning
• Picture Completion
• Telling what's missing in various pictures
• Example: Children are shown a picture, such as a car with no wheels, and are
asked: What part of the picture is missing?
• Picture Arrangement
• Arranging pictures to tell a story
• Matrix Reasoning
Examinee is presented with a series of design with a part missing.
Examinee chooses the missing part that will complete the design, from five
choices.

49. • Block Design
• Arranging multi-colored blocks to match printed design
• Example: Using the four blocks, make one just like this
• Object Assembly
• Putting puzzles together - measures nonverbal fluid reasoning
• Example: If these pieces are put together correctly, they will make
something. Go ahead and put them together as quickly as you can.

50. • Verbal IQ is based on:
• Information
• Measures a child's range of factual information
• Example: What day of the year is Independence Day?
• Similarities
• Measures a child's ability to categorize
• Example: In what way are wool and cotton alike?
• Arithmetic
• Measures the ability to solve computational math problems
• Example: If I buy 6 cents worth of candy and give the clerk 25 cents, I
would get _________ back in change?
• Vocabulary
• Measures the ability to define words
• Example: What does “telephone” mean?
• Comprehension
• Measures the ability to answer common sense questions
• Example: Why do people buy fire insurance?
• Digit Span
• Repeating dictated series of digits (e.g., 4 1 7 9) forwards and other series
backwards.

51. PERSONALITY TESTS
OBJECTIVE TESTS
PROJECTIVE TESTS

52. • Objective personality tests measure personality in a
multiple choice or a true or false format
• One of the most popular tests is the Myers-Briggs Type
Indicator (MBTI).
• The MBTI was developed and championed by Katharine
Briggs and her daughter Isabel Myers.
• Inspired by Carl Jung’s ideas about personality types:
unique ways in which people perceive and understand the
world.
OBJECTIVE TESTS

53. Personality Types
• Extroverted vs. Introverted (E or I)
• Sensing vs. Intuitive (S or N)
• Thinking vs. Feeling (T or F)
• Judging vs. Perceiving (P or J)
Myers-Briggs Type Indicator (MBTI)
A personality test that taps four characteristics and
classifies people into 1 of 16 personality types.
* Each personality type is abbreviated with the first alphabet except for Intuitive
( represented by N, to distinguish from Introversion)

54. Flexible and
Spontaneous
Sociable
and
Assertive
Quiet and
Shy
Unconscious
Processes
Uses Values &
Emotions
Practical
and
Orderly
Use Reason
and Logic
Want Order
& Structure
The MBTI focuses on 4 dichotomies

55. • The combination of these four dichotomies leads to
16 personality types, each of which is abbreviated
by a letter from the type descriptions.
ISTJ ISFJ INFJ INTJ
ISTP ISFP INFP INTP
ESTP ESFP ENFP ENTP
ESTJ ESFJ ENFJ ENTJ

56. Uses of Myers-Briggs Type Indicator (MBTI)
The MBTI tool’s reliability statistics are excellent, and its validity has
been firmly established in hundreds of separate studies.
 Many of the nation’s leading organizations use the MBTI assessment
with employees and managers.
Employers use the Myers-Briggs tool for these purposes:
Training and development of employees and managers.
Improving teamwork
Coaching and developing others
Improving communication
Resolving conflicts
Understanding personal styles to maximize effective use of human
resources.
Determining the organization’s type

57. Minnesota Multiphasic Personality Inventory (MMPI)
The most widely used objective personality test, originally intended
for psychiatric diagnosis
The test itself consists of a series of 567 items to which a person
responds “true,” “false,” or “cannot say.” The questions cover a
variety of issues, ranging from mood to opinions to physical and
psychological health.
Eg:
1. I feel useless at times.
2. People should try to understand their dreams.
3. I am bothered by an upset stomach several times a week.
 MMPI is most widely used by psychologists and mental health professionals.
 In organization context it is being used for screening the candidates,
thereby improving the selection process.

58. • Projective tests are unstructured personality measures in
which a person is shown a series of ambiguous stimuli,
such as pictures, inkblots, or incomplete drawings.
• Rorschach Inkblot Test
• The Thematic Apperception Test (TAT)
PROJECTIVE TESTS FOR PERSONALITY

59. Rorschach Inkblot Test
• Hermann Rorschach (1884-
1922)
• Nicknamed “Kleck” or
inkblot
• Talented art student who
decided to study science
• 1921 published
Psychodiagnostik
• Died in 1922

60. Rorschach
Inkblot
Test

61. Assessing the Unconscious

62. Rorschach: Validity and Reliability
• It is a projective psychological test used to analyze Personality and
emotional functioning.
• The second most common test after MMPI
Use of Rorschach Test
Poor psychometric reputation:
• Lack of standardized rules for administration and scoring
• Poor inter-rater reliability
• Lack of adequate norms
• Unknown or weak validity

63. Thematic Apperception Test (TAT)

64. Thematic Apperception Test (TAT)
• Developed by Henry Murray and colleagues at Harvard
Psychological Clinic
• 31 TAT cards depicting people in a variety of ambiguous
situations (one blank card)
• Examinee is asked to create a story about each picture

65. TAT: Administration
• Now I want you to make up a story about each of these
pictures. Tell me who the people are, what they are
doing, what they are thinking or feeling, what led up to
the scene, and how it will turn out.

66. It is used to assess:
• Locus of problems
• Nature of needs
• Quality of interpersonal relationships
Thematic Apperception Test (TAT)
• Selection of cards is not standardized
• Lack of norms.
Criticism of Thematic Apperception Test (TAT)

67. THANKS