ORGANISATIONAL BEHAVIOUR 1.pptx

1. ORGANISATIONAL
BEHAVIOUR
S SHREEDHAR
M.COM, JRF, NET, K-SET
RESEARCH SCHOLAR,
UNDER THE GUIDANCE OF PROF. RAMESH O OLEKAR
DEPARTMENT OF STUDIES IN COMMERCE
V.S.K UNIVERSITY, BALLARI.

2. Meaning and Definitions of Organizational Behaviour
• Organizational behaviour is the study of human behaviour in an
organizational setting. This includes how individuals interact with
each other in addition to how individuals interact with the organization
itself.
• Organizational behaviour is the field of study devoted to
understanding and utilization of the information about the behaviour
of individuals and groups in an organization. This study explains the
relationship between people and organization in terms of the
individual, group, organization and the entire system as a whole. The
goal is to accomplish human, organizational and social objectives by
building better relationships inside the organization.

3. • In short, assessment of people within an organizational set-up is
termed as organizational behaviour. It includes examining,
forecasting-and management of human.
• Organizational behaviour guides the management regarding how
to achieve the organizational goals in an effective manner by
giving relevant importance to human factors.
• According to Barnard, organization involves meaningful
communication among people. This states that since human factor
is the most inseparable part of the organization, hence, it should
be given proper importance. Thus, organizational behaviour helps
management in evaluating and shaping human behaviour in the
best possible manner.

4. Definitions of OB
• According to Fred Luthans, "Organizational behaviour is the
understanding, predicting and controlling human behaviour at work".
• According to Callahan, "Organizational behaviour is subset of
management activities concerned with understanding, predicting and
influencing individual behaviour in organizational setting".
• According to Stephen Robbins, "Organizational behaviour is a field
of study that investigates the impact that individuals, groups and
structure have on behaviour in organizations for the purpose of
applying such knowledge towards improving an organization's
effectiveness".

5. Nature of Organizational Behaviour
1. Fundamental Part of Management: Organizational behaviour is a
scientific study of how people behave in an organization and helps
in improving the focus of management towards employees and
setting provisions for them.
2. Multi-Disciplinary Approach: Organizational behaviour has
psychological foundation and several behavioral and social sciences
such as Psychology, Sociology, Economics and Anthropology
significantly affect its functioning, Various concepts taken from
these behavioral and social sciences include learning, perception,
motivation, attitude, etc.

6. 3. Normative Science: Organizational behaviour is considered to be a
normative science because it helps in applying the results of different
studies in working of the organization in such a way that it is compatible
with the society. Hence, individual and social acceptance is also a key
factor in the working and decision making of an organization.
4. Science and Art: Organizational behaviour is considered as science
as well as an art. Science because it involves utilization of scientific
methods and art because it deals with the behaviour of individuals.

7. 5. A Humanistic and Optimistic Approach: Organizational Behaviour
applies humanistic approach towards people working in the organization. It,
deals with the thinking and feeling of human beings. O.B. is based on the
belief that people have an innate desire to be independent, creative and
productive.
6. Focused towards Organizational Objectives: Organizational behaviour
helps to combine both organizational and individual objectives in such a way
that both can be achieved at the same time.
7. A Total System Approach: The system approach is one that integrates all
the variables, affecting organizational functioning. The systems approach has
been developed by the behavioural scientists to analyze 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.

8. History/Evolution of OB
Various phases involved in the historical development of OB:
1. Industrial Revolution
2. Scientific Management
3. Human Relation Movement
a) Great Depression
b) Labour Movement
c) Hawthorne Studies
4. Organizational Behaviour

9. 1. Industrial Revolution:
Sudden Change in the Industrial Structure
Phase: 1760-1840 started in England,
It is also known as Machine Age,
Robert Owen-(1800)
• A Young Welsh Factory Owner-First to emphasize the human needs of
employees and refused to employ children.
• Taught workers to improve working conditions.
• Father of Personnel management.
Andrew Ure-(1835)
• Published the book “The Philosophy of Manufacturers” -1835 and stated
that human factor is one of the major factor of production, beside the
mechanical and commercial parts-Believing in importance of human factor.
• Provided his workers hot tea, medical treatment and sickness payment
• Provided welfare facilities to workers.

10. J.N. TATA (Jemsetji Nusserwanji Tata)
• He took special interest in the welfare of workers.
• He installed the first humidifiers and fire sprinklers in his factories.
• In 1886, he instituted a pension fund.
• 1895 began to pay accident compensation.

11. 2. Scientific Management
F. W. Taylor-(1909)
• Father of Scientific Management
• Published book Principles of Scientific Management in 1909
a) Science, not rule of thumb.
b) Harmony, not discord.
c) Cooperation, not individualism.
d) Development of each and every person to his/her greatest efficiency.

12. 6 Elements of Scientific Study
1. Work Study
• Method Study-process that specifies methods &
activities in the job and eliminating unnecessary
operations.
• Routine and Schedule Study
• Motion Study-study of movements like putting
object, lifting, changing positions and sitting etc.,
and removing unproductive and unnecessary
movements.
2. Standardization of tools and equipment
• Select one which gives best performance
3.Scientific selection and training of workers
• Based on education, skilled, semiskilled and
unskilled
• Merit based placement
• Regular training
4. Repeated Work as per Specialization
• 8 Functional specialized person
• 4 will look after planning
• 4 will execute the task
5.Cost reduction and Cost control
• Utilization of recourses
• Budget Proposal
• Maximum Profits
6.Mental révolution-a shift of attitude of
management and workers towards each other.
• Positive attitude
• Organizational profit

13. Henry Fayol (1916)
Henry Fayol was a French mining engineer.
Turned a leading industrialist :mining executive, author and director of mines
Developed a theory of business administration: Fayolism
14 Principles of Management
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual
Interest
7. Remuneration
8. The Degree of Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of
Personnel
13. Initiative
14. Esprit de Corps

14. 3. Human Relations Movements
• Human relations movement emerged due to the failure of scientific management
theory.
• It gives great importance to assistance and morale of the employees. These
movements emphasised that employees should not be considered as machines
rather they should be treated as human beings.
• Proper attention should be given to needs and problems of employees and they
should be involved in decision-making matters concerned with working
conditions.
• Great depression, labour movement, and findings of Hawthorne Studies are some
major contributors of human relations movement

15. a) Great Depression:
• Great Depression originated from the stock exchange crash which occurred in
1929 in US. The outcomes of the depression were huge unemployment, decrease
of purchasing power, disintegration of markets, and decline in living standard of
people.
• This phenomenon was not only limited to America but was prevalent worldwide.
One benefit of 'Great Depression' was that management started to recognise that
apart from production, other functions like marketing, finance and personnel were
also necessary for a company's growth and existence.
• Great Depression presented various human problems that managers need to
identify and handle. As a result, personnel departments were formed and more
importance was given to them, and managers began to develop a new and
responsible approach to human aspects. Thus, direct and indirect outcomes of
Great Depression increased the importance of human relations.

16. b) Labour Movement:
• Ongoing exploitation of workers has made them realise that they need
to raise their voice in order to survive. Hence, they created strong
unions. This had a positive impact on management.
• Management started to give major focus on relationships of employees
and minor focus on working hours, wages, and working conditions.
Unluckily, many times the role of human relations emerged for unjust
motives.
• In various cases, managers were threatened by labours to fulfil their
demands. However, it is much better if managers are self-motivated to
work for the welfare of employees instead of being forced by them.

17. c) Hawthorne Studies:
• Hawthorne studies govern the human relations movement. The
Hawthorne studies gave academic position to the study of
organisational behaviour.
• The studies were undertaken at the Western Electric Company's
Hawthorne Works in Cicero, a suburb of Chicago, and are linked
with the name of Elton Mayo. Mayo was the professor of Industrial
Research at the Harvard School of Business Administration. Thus, he
is known as the "Father of Human Relations Movement".

18. Hawthorne studies involve Four interconnected experiments, which are as
follows:
• Phase 1: Illumination Experiment (1924-27)
• Illumination experiments were undertaken to find out how varying illumination (Light) levels
impact productivity.
• Divided workers into experimental group (exposed to varying the level of illumination).
• and control groups (Continue to work under the constant level of illumination).
• Increased and decreased illumination levels.
Findings:
• Both groups increased production with increased illumination.
• When the intensity of illumination was decreased, the production continued to Increase in
both the groups.
• Decrease in production only when illumination reached moonlight levels
• Concluded illumination alone doesn't affect productivity

19. Phase-2 Relay Assembly Test Room Experiment (1927-28)
• Relay assembly test room experiments were designed to determine impact of the
changes in job conditions on group productivity.
• Researchers set up a relay assembly test room and two girls were chosen. These
girls were asked to choose four more girls as coworkers.
• The work related to the assembly of telephone relays.
• Output depended on the speed and continuity with which girls worked.
• The experiments started with introducing numerous changes in sequence with
duration of each change ranging from four to twelve weeks.
• An observer was associated with girls to supervise their work. Before each change
was introduced, the girls were consulted. They were given opportunity to express
their viewpoints and concerns to the supervisor.
• In some cases, they were allowed to take decisions on matters concerning them.

20. • Changes Introduced and Outcomes
1.Incentive System
• Each girl's extra pay was based on the other five rather than output of larger group.
• The productivity increased as compared to before.
2. Rest Periods
• Two five-minute rests-one in morning session and other in evening session were
introduced later which were increased to ten minutes. The productivity increased.
• The rest period was reduced to five minutes but frequency was increased. The
productivity decreased slightly and the girls complained that frequent rest intervals
affected the rhythm of the work.
3. Working hours and workday
• Cutting an hour off the end of the day and eliminating Saturday work. The girls
were allowed to leave at 4.30 p.m. instead of usual 5.00p.m. and later at 4.00 p.m.
Productivity increased.

21. • As each change was introduced, absenteeism decreased, morale increased and less
supervision was required.
• At this time, the researchers decided to revert back to original position, that is, no
rest and other benefits. Surprisingly, productivity increased further instead of
going Down. productivity increased not because of positive changes in physical
factors but because of a change in the girl's attitudes towards work and their work
group.
• They developed a feeling of stability and sense of belongingness. Since there was
more freedom of work, they developed a sense of responsibility and self-
discipline.
• The relationship between supervisor and workers became close and friendly.

22. Phase-3 Mass Interview Programme (1928-1930)
• During the course of experiments, about 21,000 interviews were conducted to
determine employees attitudes towards company, supervision, promotion, and
wages.
• Initially, these interviews were conducted by means of direct questioning such as
'do you like your supervisor? or is he in your opinion fair or does he have
favorites? etc.
• Since this method had disadvantage of either stimulating antagonism or the over
simplified 'yes' or 'no' responses which could not get to the root of the problem,
the method was changed to non-directive interviewing where interviewer was
asked to listen to instead of talking, arguing, or advising.
• During the course of interviews, it was discovered that workers behaviour was
being influenced by group behaviour. However, this conclusion was not very
satisfactory and, therefore, researchers decided to conduct another series of
experiments.

23. Phase -4 Bank Wiring Observation Room Experiment (1931-1932)
• Objective is to Analyze small group functioning and its impact on individual
behavior.
• A group of fourteen male workers was employed for attaching wire to switches for
certain equipment used in telephone exchange in the bank wiring room-nine
wiremen, three solder men and two inspectors.
• Hourly wage rate for the personnel was based on average output of each worker
while bonus was to be determined on the basis of average group output.
• The hypothesis was that in order to earn more, workers would produce more and
in order to take the advantages of group bonus, they would help each other to
produce more. However, this hypothesis did not hold valid.

24. • Workers decided the target for themselves which was lower than the company's
target, for example, group's target for a day was connecting 6000 terminals against
7000 terminals set by the company.
-Reasons for Restricted Output:
• Fear of Unemployment: The basic reasoning of workers was that if there would be
more production per head, some of the workers would be put out of employment.
• Fear of Raising the Standards: Most workers were convinced that once they had
reached the standard rate of production, management would raise the standard of
production reasoning that it must be easy to attain.
• Protection of Slower Workers: The workers were friendly on the job as well as off
the job. They appreciated the fact that they had family responsibility that required
them to remain in the job. Since slower workers were likely to be retrenched, the
faster workers protected them by not overproducing.
• Satisfaction on the Part of Management: According to workers, management
seemed to accept the lower production rate as no one was being fired or even
reprimanded for restricted output.

25. This study suggested that informal relationships are an important factor in
determining the human behaviour.
During the course of experiments, workers were counselled for good human
relations in the company's plant.
The counselling was in regard to personal adjustment, supervision, employee
relations, and management-employee relations.
The supervisor tended to understand and accept the problems of workers, and
management tried to sense their feelings which were helpful in formulating the
action for resolving management-employee conflicts.

26. 4. Organisational Behaviour
• Human relations movement prospered for a long period of time but the movement grew
so fast that it became faded and meaningless after some time.
• Some managers have begun to focus on smiling or being good to others while at the same
time they were cleverly controlling the employees. Thus, human relations movement was
seriously criticised.
• As time went by, the term "human relations" lost its importance. Thus, a new concept
emerged in late 1950s and early 1960s with the increased maturity and research, it was
termed as 'organisational behaviour'.
• Since 1960s, organisational behaviour proceeded forward.
• In 1960s and 1970s major focus was on motivation and leadership theories, job design,
and job satisfaction.
• In 1980s, the focus shifted towards organisational culture, teamwork, and politics.
• In 1990s, attention shifted towards individual honesty, character, virtue ethics and positive
psychology.
• Since 2000, Fred Luthans has comprehended positive psychology with his focus on
Positive Organisational Behaviour (POB), which has given importance to confidence,
hopefulness, positivity and other positive traits associated with work.

27. Fundamental Concepts of OB
• Nature of People: There are certain concepts related to the people which are as follows:
i) Individual Differences: Management can encourage employees in a better way by understanding
that all people are different and hence treating every person differently. Law of individual differences
also taught us that each individual is different and unique.
ii) Perception: People see different things in different manner i.e., people may have different
viewpoints for the same object. These viewpoints about the environmental objects are made clear by
right perception.
iii) Motivation to Employees: Need of an employee motivates him to perform well in the
organisation. In some cases, motivation is also required to pursue excellence or to foster the work
quality.
iv) Whole Person: While hiring an employee the manager also hires things that are associated with
him like his nature, likes and dislikes, preferences, background, hobbies, etc. But his family life
cannot be isolated from his work life. Hence, a manager must try to make the workplace as a home so
that employee feels like home at work.

28. v) Caused Behaviour: Psychology teaches us that normal behaviour has issues
related to need of a person or as a consequence to certain action. The management
can motivate employees in two ways. Firstly, by showing them how their action can
raise their need fulfilment. Secondly, by threatening them that their undesirable
action can adversely affect fulfilment of their needs.
vi) Desire for Involvement: An employee who is meaningfully involved in the
working of an organisation feels good about himself. Management should provide
such opportunities to employees as it results in mutual growth of the employee and
the organisation.
vii) Human Dignity: Every person desires to get respect from others. Therefore,
employees should also be respected like managers.

29. Nature of Organisations:
Following are the concepts with regard to organisation:
i) Organisation is a Social System: Just like a social system an organisation also
coordinates the activities of its employees in order to achieve its goals.
ii) Mutuality of Interest: The relation between an employee and the organisation is
a symbiotic one. The organisational goals can only be achieved through combined
efforts of the employee and the employer. This results in the mutual growth of both
the employee and the organisation.
iii) Ethics: Ethical conduct is essential to obtain and hold valuable employees in this
competitive world. Organisations must treat their employees in an ethical way in
order to succeed.

30. Scope of OB
• The scope of Organizational Behavior is comprehensive, covering
individual and group Behaviour as well as the broader organizational
structure, processes, and applications that contribute to understanding
and improving organizational effectiveness.

31. A. Individual Behaviour:
1. Personality:
Study of individual characteristics and traits influencing behavior in an organizational context.
2. Motivation:
Understanding factors that drive individuals to pursue goals and contribute to organizational success.
3. Interests:
Exploring individual preferences and inclinations that impact job satisfaction and engagement.
4. Decision Making:
Analyzing the cognitive process individuals use to make choices and solve problems in the workplace.
5. Perception:
Examining how individuals interpret and make sense of information, affecting their behavior.
6. Values and Attitudes:
Investigating the core beliefs, values, and attitudes shaping individual behavior within the organization.
7. Learning:
Understanding how individuals acquire knowledge and skills, influencing their adaptation to the work
environment.

32. B. Group Behaviour:
1.Work Groups and Group Dynamics:
Studying the formation, structure, and dynamics of work groups, including roles and norms.
2.Relationship with Superiors & Subordinates:
Examining interpersonal relationships between employees and their superiors or subordinates.
3.Conflict Management:
Understanding the sources of conflict and strategies for effective conflict resolution.
4.Communication Channels:
Analyzing the flow of information within groups and organizations through various
communication channels.
5.Leadership:
Investigating leadership styles, behaviors, and their impact on group and organizational
outcomes.
6.Morale:
Assessing the overall job satisfaction and motivation levels within groups.
7.Teamwork:
Exploring how individuals collaborate and work together to achieve common goals.

33. C. Organisational Structure, Process & Application:
1.Organizational Culture:
Understanding the shared values, beliefs, and practices that shape the organizational
environment.
2.Organizational Design:
Examining the structure of the organization, including span of control, hierarchical levels,
and division of labor.
3.Organizational Change:
Studying how organizations plan and implement changes to adapt to evolving
circumstances.
4.Organizational Effectiveness:
Evaluating how well the organization is achieving its strategic goals and objectives.
5.Organizational Development:
Focusing on initiatives to enhance organizational strengths, capabilities, and overall
performance.
6.Structure of Groups/Teams:
Analyzing the composition, roles, and dynamics of groups and teams within the
organization.

34. Challenges and Opportunities for
organizational behaviour
• Both challenges and opportunities arise in the field of organizational
behavior, influencing the overall functioning and success of an
organization. Here are some key challenges and opportunities:
• Challenges:
1.Diversity and Inclusion: Managing a diverse workforce can be
challenging, as organizations must create an inclusive environment
that values and respects differences in gender, race, age, and other
demographics.
2.Globalization: Operating in a global environment introduces
challenges related to cross-cultural communication, coordination
across time zones, and adapting to diverse business practices.
3.Technology Disruption: Rapid technological advancements can
lead to resistance to change, job displacement, and the need for
continuous learning and adaptation.

35. 4. Employee Engagement: Maintaining high levels of employee
engagement is a persistent challenge. Disengaged employees
can lead to decreased productivity, increased turnover, and a
negative organizational culture.
5. Leadership Development: Identifying and developing
effective leaders is crucial. The lack of capable leaders can
hinder organizational success and hinder employee morale.
6. Ethical Dilemmas: Organizations face ethical challenges that
can impact their reputation and trust. Leaders must navigate
complex ethical decisions and ensure the organization operates
ethically.

36. Opportunities:
1.Employee Empowerment: Empowering employees by providing
them with autonomy and decision-making authority can lead to
increased job satisfaction, innovation, and overall organizational
performance.
2.Technological Advancements: Embracing technology offers
opportunities for increased efficiency, improved communication, and
the development of innovative products and services.
3.Learning and Development: Organizations can capitalize on
continuous learning and development opportunities to enhance
employee skills, adapt to industry changes, and stay competitive.
4.Change Management: Effectively managing change can lead to
improved organizational agility and resilience. Embracing change as
an opportunity for growth rather than a threat can enhance
organizational performance.

37. 5. Team Collaboration: Fostering a collaborative culture
promotes teamwork, creativity, and problem-solving. Team
collaboration can lead to better decision-making and increased
employee satisfaction.
6. Wellness Programs: Implementing wellness programs can
improve employee well-being, reduce absenteeism, and increase
overall productivity.
7. Flexible Work Arrangements: Offering flexible work
arrangements, such as remote work options, can attract top
talent and contribute to improved work-life balance.
8. Innovation Culture: Creating a culture that encourages and
rewards, innovation can lead to the development of new
products, services, and processes, keeping the organization
competitive in the market.

38. Contributing Disciplines To Organizational
Behavior (OB)
• Organizational behavior (OB) is characterized by being a multidisciplinary
discipline in nature as so OB is contributed by various disciplines.
• These disciplines have developed and made organizational behavior a
strong separate field of study with its own applications to use.
• The major contributing disciplines to the field of organizational
behavior are:
1. Psychology
2. Sociology
3. Social Psychology
4. Anthropology
5. Political Science
6. Economics
7. Medicine

39. Psychology
• Psychology is the behavioral science that studies human behavior
(+animals) and mental processes. It is the science of humans. It is the best
tool to understand why people think, what they think, and how they think.
Psychology has contributed many important concepts to OB, such as:

40. Sociology
• Sociology is the study of human behavior in a social setting consisting of
human interaction, growth of society, structure, and regulations. Sociology
believes humans are social beings, they are in groups.

41. Social Psychology
• Social psychology is the combination of both psychology and sociology. It
studies the social behavior and thought of people plus how people think,
feel, process, and act. It explains the interaction, interdependence, and
influence of people among one another.

42. Anthropology
• Anthropology is the science of humans. It studies the evolution
or development stages of human beings consisting of human
nature, different societies, and how different cultures are
developed.

43. Political Science
• Political science deals with politics and its practices in different
scenarios. It mainly concerns the allocation of power, conflict
resolution, group coalition, and how to manipulate power for
individual self-interest.

44. Medicine
• Medicine is the branch of health
science that deals with the
identification and treatment of
diseases to improve the health of
people. It treats both physical and
psychological diseases of people.
• In organizational settings,
employees also suffer from
psychological diseases, and
applications of medical science
help managers organize different
wellness programs so that
employees’ health will be improved
and they are ready again to work.
Economics
• The science of economics is
related to the cost. It is the study of
how to minimize cost, how to best
use scarce resources, and achieve
more from less.
• To run the daily operations of the
organization there is a need for
money. The study of economics
helps managers to best use the
organization’s limited resources.
And, economic factors such as
labor market dynamics, wages,
demand-supply, cost of production,
etc. also influence organizational
behavior.