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ORGANIZATIONAL 
BEHAVIOUR 
ROOPA TEMKAR V. 1
Contents 
 What is Organization Behaviour? 
 Why study Organizational Behaviour? 
 Elements of Organizational Behaviour 
 Contributing factors to OB 
 Evolution of OB(Historical Development) 
 Models of Organizational Behaviour 
 Fundamental Concepts 
 Social systems and organizational culture 
 International dimensions of Organizational Behaviour 
 The future of OB. 
ROOPA TEMKAR V. 2
“O.B. is a field of study that investigates 
the impact that individuals , groups and 
structures have on behaviour within 
organizations for the purpose of 
applying such knowledge towards 
improving an organization’s 
effectiveness” 
- Stephen P Robbins 
ROOPA TEMKAR V. 3
• O.B. can be defined as the systematic 
study of the actions and reactions of 
individuals, groups and sub-systems. 
• O.B. is the study and understanding of 
individual and group behaviour, 
patterns of structure in order to help 
improve organizational performance 
and effectiveness 
• The study of human behavior, attitudes, 
and performance in organizations 
ROOPA TEMKAR V. 4
What is Organizational 
Behavior? 
• The study and application of how 
employees behave within organizations 
• Known as people skills 
• Field of study that investigates the 
impact that individuals, groups and 
structure have on behavior within 
organizations for the purpose of 
applying such knowledge towards 
improving an organization 
ROOPA TEMKAR V. 5
Interrelated dimensions influencing behaviour: 
• The Individual - working environment should satisfy 
individual needs as well as attainment of 
organisational goals. 
• The Group - formal and informal. Understanding of 
groups complements a knowledge of individual 
behaviour. 
• The Organisation - impact of organisation structure 
and design, and patterns of management, on 
behaviour. 
• The Environment - technological and scientific 
development, economic activity, governmental 
actions 
ROOPA TEMKAR V. 6
ROOPA TEMKAR V. 7
e.g., Selection Systems Organizational Level 
Group Level 
Individual 
Level 
e.g., Groupthink 
e.g., Personality 
ROOPA TEMKAR V. 8
Understanding 
organizational behavior 
requires studying 
Individuals in Organizations 
Group and Team Processes 
Organizational Processes 
ROOPA TEMKAR V. 9
• O.B. is the systematic study and careful application 
of knowledge about how people- as individuals and 
as members of groups –act within organizations. It 
strives to identify ways in which people can act more 
effectively. 
• O.B. provides managers with the tools to: 
• (a) to understand the behavior of individuals 
• (b) to understand the complexities of inter-personal 
relations 
• (c )to examine the dynamics of relationships 
within small groups –both formal teams and informal 
groups 
• (d) organizations can be viewed as whole 
systems that have inter-orgRaOnOPiAz TaEMtKiAoR Vn. al relationships1 0
GOALS 
The field of OB seeks to replace intuitive 
explanations with systematic study O.B. has 
the following goals, 
• 1.Describe, systematically, how people 
behave under a variety of circumstances 
• 2.Understand why people behave as they do. 
• 3.Predicting future employee behavior. 
• 4.Control at least partially, and develop some 
human activity at work 
ROOPA TEMKAR V. 11
Goals of Organizational 
Understand 
organizational 
events 
Organizational 
Behaviour 
Research 
Predict 
organizational 
events 
Behaviour 
Influence 
organizational 
events 
ROOPA TEMKAR V. 12
Fundamental concepts of 
ORGANIZATIONAL BEHAVIOUR 
People 
•Individuals 
•Groups 
Environment 
•Government 
•Competition 
•Societal pressure 
Organizational Behavior 
Structure 
•Jobs 
•Relationships 
Technology 
•Machinery 
•Computer hardware ,software 
ROOPA TEMKAR V. 13
Historical development of OB 
1. Industrial revolution (1900) 
Importance to relationship and behavior 
was controlled and unquestioned. 
2. Scientific management(1856-1915) 
Concerned with inefficiencies in manual 
labour 
3. The Gillberths(1868-1924) 
Were training young brick layers 
ROOPA TEMKAR V. 14
Wrote a book called psychology of 
management 
Proposed two factors i.e., analysis & 
synthesis of task 
4. Henry L. Gantt 
Proposed Gantt chart which is a graphic 
aid to planning, scheduling & control 
5. Human relations management (1930- 
1950) by Elton & Mayo 
ROOPA TEMKAR V. 15
The Elements of Organizational 
Behavior 
• The organization's base rests on 
management's philosophy, values, vision and 
goals. 
• This in turn drives the organizational culture 
which is composed of the formal organization, 
informal organization, and the social 
environment. 
• The culture determines the type of 
leadership, communication, and group 
dynamics within the organization. 
ROOPA TEMKAR V. 16
• The workers perceive this as the quality 
of work life which directs their degree of 
motivation. 
• The final outcome are performance, 
individual satisfaction, and personal 
growth and development. 
• All these elements combine to build the 
model or framework that the 
organization operates from. 
ROOPA TEMKAR V. 17
ROOPA TEMKAR V. 18
Contributing Disciplines to 
the OB Field 
E X H I B I T 1-3a 
ROOPA TEMKAR V. 19
Contributing Disciplines to 
the OB Field (cont’d) 
E X H I B I T 1-3b 
ROOPA TEMKAR V. 20
Contributing Disciplines to 
the OB Field (cont’d) 
E X H I B I T 1-3c 
ROOPA TEMKAR V. 21
Contributing Disciplines to 
the OB Field (cont’d) 
E X H I B I T 1-3d 
ROOPA TEMKAR V. 22
Contributing Disciplines to 
the OB Field (cont’d) 
ROOPA TEMKAR V. 23
Models of OB 
ROOPA TEMKAR V. 24
Autocratic — The basis of this model is 
power with a managerial orientation of 
authority. The employees in turn are 
oriented towards obedience and 
dependence on the boss. The employee 
need that is met is subsistence. The 
performance result is minimal. 
Eg., “you do this or else” 
ROOPA TEMKAR V. 25
• Custodial — The basis of this model is 
economic resources with a managerial 
orientation of money. The employees in 
turn are oriented towards security and 
benefits and dependence on the 
organization. The employee need that is 
met is security. The performance result 
is passive cooperation. 
ROOPA TEMKAR V. 26
• Supportive — The basis of this model is 
leadership with a managerial orientation 
of support. The employees in turn are 
oriented towards job performance and 
participation. The employee need that is 
met is status and recognition. The 
performance result is awakened drives. 
ROOPA TEMKAR V. 27
• Collegial — The basis of this model is 
partnership with a managerial 
orientation of teamwork. The employees 
in turn are oriented towards responsible 
behavior and self-discipline. The 
employee need that is met is self-actualization. 
The performance result is 
moderate enthusiasm. 
ROOPA TEMKAR V. 28
• The system model 
• In this approach managers try to convey 
to each worker you are an important 
part of our whole system 
• The role of manager is facilitating 
employee accomplishments 
• employee orientation is self motivation 
ROOPA TEMKAR V. 29
International Dimensions of OB 
Corporate governance. 
– The active oversight of management decisions, 
– corporate strategy, and financial reporting by 
Boards of Directors. 
Ethical leadership. 
– Making business and organizational decisions 
with high moral standards that meet the ethical 
test of being “good” and not “bad,” and of being 
“right "and not “wrong.” 
ROOPA TEMKAR V. 30
Integrity: 
• Acting in ways that are always honest, 
credible, and consistent in putting one’s 
values into practice. 
• Positive organizational behaviour. 
Quality of work life. 
• The overall quality of human experience in 
the workplace. Commitment to quality of 
work life is an important value within 
organizational behaviour. Theory Y provides 
the theoretical underpinnings for 
contemporary quality of work life concepts. 
ROOPA TEMKAR V. 31
Globalization. 
– The worldwide interdependence of resource 
flows, product markets, and business 
competition. 
Job migration. 
– The shifting of jobs from one nation to another 
ROOPA TEMKAR V. 32

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  • 2. Contents  What is Organization Behaviour?  Why study Organizational Behaviour?  Elements of Organizational Behaviour  Contributing factors to OB  Evolution of OB(Historical Development)  Models of Organizational Behaviour  Fundamental Concepts  Social systems and organizational culture  International dimensions of Organizational Behaviour  The future of OB. ROOPA TEMKAR V. 2
  • 3. “O.B. is a field of study that investigates the impact that individuals , groups and structures have on behaviour within organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness” - Stephen P Robbins ROOPA TEMKAR V. 3
  • 4. • O.B. can be defined as the systematic study of the actions and reactions of individuals, groups and sub-systems. • O.B. is the study and understanding of individual and group behaviour, patterns of structure in order to help improve organizational performance and effectiveness • The study of human behavior, attitudes, and performance in organizations ROOPA TEMKAR V. 4
  • 5. What is Organizational Behavior? • The study and application of how employees behave within organizations • Known as people skills • Field of study that investigates the impact that individuals, groups and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organization ROOPA TEMKAR V. 5
  • 6. Interrelated dimensions influencing behaviour: • The Individual - working environment should satisfy individual needs as well as attainment of organisational goals. • The Group - formal and informal. Understanding of groups complements a knowledge of individual behaviour. • The Organisation - impact of organisation structure and design, and patterns of management, on behaviour. • The Environment - technological and scientific development, economic activity, governmental actions ROOPA TEMKAR V. 6
  • 8. e.g., Selection Systems Organizational Level Group Level Individual Level e.g., Groupthink e.g., Personality ROOPA TEMKAR V. 8
  • 9. Understanding organizational behavior requires studying Individuals in Organizations Group and Team Processes Organizational Processes ROOPA TEMKAR V. 9
  • 10. • O.B. is the systematic study and careful application of knowledge about how people- as individuals and as members of groups –act within organizations. It strives to identify ways in which people can act more effectively. • O.B. provides managers with the tools to: • (a) to understand the behavior of individuals • (b) to understand the complexities of inter-personal relations • (c )to examine the dynamics of relationships within small groups –both formal teams and informal groups • (d) organizations can be viewed as whole systems that have inter-orgRaOnOPiAz TaEMtKiAoR Vn. al relationships1 0
  • 11. GOALS The field of OB seeks to replace intuitive explanations with systematic study O.B. has the following goals, • 1.Describe, systematically, how people behave under a variety of circumstances • 2.Understand why people behave as they do. • 3.Predicting future employee behavior. • 4.Control at least partially, and develop some human activity at work ROOPA TEMKAR V. 11
  • 12. Goals of Organizational Understand organizational events Organizational Behaviour Research Predict organizational events Behaviour Influence organizational events ROOPA TEMKAR V. 12
  • 13. Fundamental concepts of ORGANIZATIONAL BEHAVIOUR People •Individuals •Groups Environment •Government •Competition •Societal pressure Organizational Behavior Structure •Jobs •Relationships Technology •Machinery •Computer hardware ,software ROOPA TEMKAR V. 13
  • 14. Historical development of OB 1. Industrial revolution (1900) Importance to relationship and behavior was controlled and unquestioned. 2. Scientific management(1856-1915) Concerned with inefficiencies in manual labour 3. The Gillberths(1868-1924) Were training young brick layers ROOPA TEMKAR V. 14
  • 15. Wrote a book called psychology of management Proposed two factors i.e., analysis & synthesis of task 4. Henry L. Gantt Proposed Gantt chart which is a graphic aid to planning, scheduling & control 5. Human relations management (1930- 1950) by Elton & Mayo ROOPA TEMKAR V. 15
  • 16. The Elements of Organizational Behavior • The organization's base rests on management's philosophy, values, vision and goals. • This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. • The culture determines the type of leadership, communication, and group dynamics within the organization. ROOPA TEMKAR V. 16
  • 17. • The workers perceive this as the quality of work life which directs their degree of motivation. • The final outcome are performance, individual satisfaction, and personal growth and development. • All these elements combine to build the model or framework that the organization operates from. ROOPA TEMKAR V. 17
  • 19. Contributing Disciplines to the OB Field E X H I B I T 1-3a ROOPA TEMKAR V. 19
  • 20. Contributing Disciplines to the OB Field (cont’d) E X H I B I T 1-3b ROOPA TEMKAR V. 20
  • 21. Contributing Disciplines to the OB Field (cont’d) E X H I B I T 1-3c ROOPA TEMKAR V. 21
  • 22. Contributing Disciplines to the OB Field (cont’d) E X H I B I T 1-3d ROOPA TEMKAR V. 22
  • 23. Contributing Disciplines to the OB Field (cont’d) ROOPA TEMKAR V. 23
  • 24. Models of OB ROOPA TEMKAR V. 24
  • 25. Autocratic — The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal. Eg., “you do this or else” ROOPA TEMKAR V. 25
  • 26. • Custodial — The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation. ROOPA TEMKAR V. 26
  • 27. • Supportive — The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives. ROOPA TEMKAR V. 27
  • 28. • Collegial — The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm. ROOPA TEMKAR V. 28
  • 29. • The system model • In this approach managers try to convey to each worker you are an important part of our whole system • The role of manager is facilitating employee accomplishments • employee orientation is self motivation ROOPA TEMKAR V. 29
  • 30. International Dimensions of OB Corporate governance. – The active oversight of management decisions, – corporate strategy, and financial reporting by Boards of Directors. Ethical leadership. – Making business and organizational decisions with high moral standards that meet the ethical test of being “good” and not “bad,” and of being “right "and not “wrong.” ROOPA TEMKAR V. 30
  • 31. Integrity: • Acting in ways that are always honest, credible, and consistent in putting one’s values into practice. • Positive organizational behaviour. Quality of work life. • The overall quality of human experience in the workplace. Commitment to quality of work life is an important value within organizational behaviour. Theory Y provides the theoretical underpinnings for contemporary quality of work life concepts. ROOPA TEMKAR V. 31
  • 32. Globalization. – The worldwide interdependence of resource flows, product markets, and business competition. Job migration. – The shifting of jobs from one nation to another ROOPA TEMKAR V. 32