The document discusses the evolution of organizational behavior (OB) from the industrial revolution to modern HR practices, highlighting key figures, contributions, and principles related to employee welfare, management models, and the significance of understanding human behavior in organizations. It explores various models of OB, including autocratic, supportive, collegial, and custodial, along with the foundational factors influencing individual behavior such as personal, psychological, and environmental aspects. The document also delves into whistleblowing cases like the Ranbaxy scandal, illustrating the consequences of unethical practices in organizations.

1. INTRODUCTION TO ORGANIZATIONAL
BEHAVIOUR
By
Dr.MALATHI SELVAKKUMAR

2. EVOLUTION OF OB
Industrial Revolution
Started in 1776
Robert Owen- Welsh factory
owner in 1800 emphasised on
human needs in employees
Against Child Labour
Created awareness about the
cleanliness of workplace

3. Industrial Revolution
• Andrew Ure in 1835
• “Philosophy of
Manufacturers”
• Identified human factor in
addition to mechanical &
commercial aspects of mfg
• Provided tea, medical treat-
ment, fans (ventilation)and
sickness payments to
employees

4. Industrial Revolution
• In India, J.N.Tata (Jamset
Nusserwanji) introduced:-
Provident Fund
Pension Scheme
Accident compensation
Installed humidifiers
Fire sprinklers

5. TATA’s contribution to India

6. Scientific Management
• Contributed by F.W.Taylor in the early 1990s
• He is called as the Father of
Scientific Management
• Right person for the right job
• Training of employees
• Remuneration
• Recognition of productivity of
industrial workers

7. Scientific Management - Principles
• Scientifically study each part of the job, and develop
the “one best way” of doing it
• Carefully select and train the employees
• Cooperate with the workers to ensure they use proper
methods
• Divide work and responsibility between workers and
managers

8. Scientific Management- Principles
• Apply financial incentives
system
• Establish standards of work
• Utilise specialised
functional supervision
• Develop and maintain
friendly labour
management relations

9. Scientific Management
Criticisms
Focus on time- so workers are
under pressure to perform fast
Focus on productivity and
profitability
Exploitation of workers and
customers
Leads to mistrust between labour and
management

10. Criticisms
• RABBLE HYPOTHESIS
He was widely criticised for
considering the society as
unorganised, and the
individual worker for working
with self interest

11. HR MOVEMENT
• Because of the Great Depression in 1929, HR
became an important aspect of management
• Decent hours of work
• Fair wages
• Good working conditions
• Employee relations
• Worker cooperation and morale
• Human element - capital

12. HR MOVEMENT
• Exploitation of workers
led to their need for
protection of their rights
• This led to formation of
trade unions
• Primary emphasis on
wages and employee
relations

13. OB- Definition
• Organizational Behaviour (OB) can be defined
as “the understanding, prediction and
management of human behaviour both
individually or in a group that occur within an
organization”.

14. OB - Meaning
• While at work, to understand others
behaviour as well as make others understand
ours.
• For a healthy working environment, we need
to adapt to the environment and understand
the goals we need to achieve.

15. Management Skills
• Technical Skills
• Human Skills
• Conceptual Skills

16. Disciplines that contribute to OB
• Psychology – motivation, personality, perception,
emotions, work stress, job satisfaction
• Social Psychology – attitude & behavioural change,
communication
• Sociology – power, conflict,
intergroup behaviour,
organisational change and
culture
• Anthropology – cross cultural
analysis, comparative values and attitudes

17. Importance of OB
• It helps in explaining the interpersonal
relationships employees share - peers, higher
and subordinates.
• The individual behaviour can be predicted.
• It balances relationship in
an enterprise through
effective communication.

18. Importance of OB
• It assists in marketing.
• It helps managers to encourage their sub-
ordinates.
• Any change within the organization can be
made easier.
• It helps in predicting human behavior & their
application to achieve organizational goals.
• It helps in making the organization more
effective.

19. Challenges of OB
• Responding to economic pressures
• Responding to globalisation
• Increased foreign assignments
• Working with people from different cultures

20. Challenges of OB
• Stimulating innovation and change
• Managing workforce diversity
• Improving customer service
• Improving people skills
• Creating a positive
environment
• Helping employees balance
work life conflicts

21. Models of OB
Autocratic
Model
Supportive
Model
Collegial
Model
Custodial
Model
Systems
Model

22. Approaches/Models of OB
• Supportive Model – HR Approach – leadership
based
• Autocratic Model – Theory X
• Custodial Model –
employee welfare based
• Collegial Model – team work
based on self-discipline
• Systems Model – holistic
approach to management

23. Autocratic Model
• Power of the BOSS
• Penalty is the motivator
• Tight control over the
employees at work
• Ideal when employees are lazy
• Has a negative impact as employees are
uninformed, insecure and afraid
• Not applicable in the present global work culture

24. Custodial Model
• Depends on economic resources
• Employees highly dependant on
the organisation
• Passive cooperation from
employees
• Welfare & development programs
• Employees are secured and
satisfied
• Depends on material rewards
• (eg) PSUs

25. Supportive Model
• Depends on leadership instead
of power/money
• Self directed and creative
team
• Supports employee
performance
• Cares for psychological needs
of employees
• Better superior- subordinate
relationship
• Confidence and trust(eg) S/W
firms

26. Collegial Model
• Workers feel they are partners in the organisation
– matrix organisation
• Team spirit and self discipline
• Promotes participation and
cooperation
• Highly motivated employees
• Makes employees responsible
• Extension of the supportive
model (eg) NGOs

27. Models of OB – A comparison
Basis of comparison Autocratic Custodial Supportive Collegial Systems
Basis of the Model Power Economic sources Leadership Partnership
Trust and
understanding
Managerial
Orientation Authority Money Support Teamwork Care & compassion
Employee
Orientation Obedience Security &
benefits
Job Performance Responsible
Behaviour
Psychological
ownership
Employee Psyche Dependence on
Boss
Dependence on
organisation
Participation Self-discipline Self motivation
Employee
performance Minimum Passive cooperation Awakened drives Moderate
enthusiasm
Organisational goal
Employee Needs Subsistence Security Status and recognition Self actualisation Passion, commitment

28. FOUNDATIONS OF INDIVIDUAL
BEHAVIOUR
• According to Lewin “ a person’s behaviour is
the product of the person and his/her
environment.
• B= ∑ (P, E), where B= Behaviour; P= Person;
and E= Environment

29. FOUNDATIONS OF INDIVIDUAL
BEHAVIOUR
• Personal Factors
• Psychological Factors
• Environmental Factors
• Organisational systems and resources

30. Foundations of Individual Behaviour
Personal Factors
 Age
 Sex
 Education
 Abilities
 Marital Status
 No. of dependants
 Creativity
 Emotional Intelligence
 Identity

31. Ability
It is an individual’s capacity to perform various
tasks in a job.
The ability of an individual is
made up of 2 types of skills :-
Intellectual skills –skills
required to perform mental
activities
Physical skills – are the abilities
required to perform a task

32. Dimensions of Intellectual Ability
• Number aptitude – the ability to do speedy and
accurate calculations
• Verbal comprehension – the
ability to understand what is read
or heard, and the relationship of
words to each other
• Inductive reasoning– the ability to
identify the logical sequence in a
problem and then solve it

33. Dimensions of Intellectual Ability
• Perceptual speed – ability to identify visual similarities
and differences
quickly and accurately
• Deductive reasoning – Ability to
use logic and assess the implications
of an argument
• Spatial visualisation - ability to
imagine how an object would look, if
its position in space were changed
• Memory – ability to retain and recall
past experiences

34. Nine basic physical abilities
strength factors
• Dynamic strength – ability to exert muscular
strength continuously over time
• Trunk Strength - ability to
exert using trunk muscles
• Static strength – ability to exert
force against external objects
• Explosive strength - ability to
expand a maximum of energy

35. Nine basic physical abilities
flexibility factors
• Extent flexibility – ability to move the trunk
and back muscles as far as possible
• Dynamic flexibility – Ability to make rapid,
repeated flexing movements
• Body coordination – ability
• to coordinate actions of
diff different parts of the body

36. Nine basic physical abilities
flexibility factors
• Balance - ability to maintain equilibrium
despite unbalancing forces
• Stamina – Ability to continue maximum effort
requiring prolonged effort over time

37. Psychological Factors
• Personality
• Perception
• Attitudes
• Values
• Learning

38. Environmental Factors
• Economic Factors
• Social and cultural
factors
• Ethics and social
responsibility
• Political factors

39. Environmental Factors
• Economic environment
• Employment opportunities
• Wages
• Trade cycles
• Technological change

40. Social and Cultural Environment
• Work ethics
• Achievement needs
• Effort – reward expectations
• Cultural attributes like
educational system, media
conditioning, institutional
characteristics
• Values – individual judgement of right and wrong

41. Ethics and Social Responsibility
• Moral principles – good/bad; right/wrong
• Personal ethics and business ethics
– same when looked at the leader
• Example- Chung Mong Koo, Head of Hyundai
Motors – 6th largest car maker in the world,
sentenced to 3 years imprisonment for
embezzlement of funds and breach of trust

42. CSR
•

43. Political Factors
• Stability of the ruling government affects the
employment opportunities
• Does not attract investors from India or FDI

44. Organisational Systems and
Resources
• Physical facilities
• Organisational structure and
design
• Leadership styles
• Reward Systems
• Work related behaviour – joining, remaining,
performing tasks, deviant behaviour and
exhibiting organisational citizenship

45. Organisational Citizenship Behaviour
Forms
Altruism – helping co-workers, volunteering
Conscientiousness
Civic Virtue – attending meetings voluntarily,
keeping up with new information
Sportsmanship – not finding fault with the
organisation
Courtesy- not creating problems

46. Forms of Organisational Behaviour
• Deviant behaviour – 2 forms
Constructive behaviour – whistle blowing
Destructive behaviour – workplace violence
• Cyber loafing – using office internet and e-mails
for personal purposes
• Employee theft – 2 reasons
“Others are doing, why not me”?
To settle scores if they believe they are ill -treated

47. Whistle Blowing
It is “raising a concern about
a wrong doing within an
organisation”.
A whistle blower is a person
who exposes misconduct,
alleged dishonest or illegal
activity occurring in an
organisation

48. Whistle Blowing- Types
Internal – is blowing the whistle inside the
organisation, to draw the attention of the
management
Personal – is blowing the whistle on the
offender and the charge here is not against the
organisation but against an individual

49. Whistle Blowing- Types
External – is blowing the whistle to law
enforcement agencies or to teams worried with
legal matters (eg) lawyers, IT department, mass
media and law enforcement
(factory/food/safety inspector)

50. Components of WB Policy
 An effective communicated statement of responsibility
 A clear defined procedure
of reports
 Well trained personnel to
receive and investigate
reports
 A commitment to take
appropriate action
 A guarantee against retaliation
reports in good faith

52. WB -The Ranbaxy Case
• American investigative journalist Katherine Eban
pored over to piece together a riveting and definitive
account of how once storied Indian pharma major
Ranbaxy blatantly cut corners - to improve its bottom
line.
• Ranbaxy had fabricated quality data in order to gain
approval to market its drugs .
•

53. WB -The Ranbaxy Case
• The allegations had first been made by a company
whistle blower who had contacted the agency (FDA)
• The whistle blower in question is Dinesh Thakur,
then Ranbaxy's Director and Global Head
of Research, Information and Portfolio Management,
who, in 2004 put together a team to study a deadly
secret he had come across: that the company was
fudging data.
• He blew the lid off illegal practices by Indian pharma
companies compromising on quality

54. WB -The Ranbaxy Case
The team gathered bits of information and
stumbled into Ranbaxy’s secret: the company
manipulated almost every aspect of its
manufacturing process to produce impressive
data to improve its bottom line
The company’s scientists at the behest of its
managers substituted lower purity ingredients
for higher ones to reduce cost

55. WB -The Ranbaxy Case
 They altered test parameters so that formulations with higher
impurities could be approved
 They faked dissolution studies
 They superimposed brand-name test results onto their own in
applications
 The company forged its own Standard Operating Procedures
(SOP) that is relied upon by FDA investigators
 Employees backdated documents and artificially aged them in a
steamy room overnight to fool regulators

56. WB -The Ranbaxy Case
Takur worked for 14 hour days for several
weeks doing exhaustive research and finally
brought his team’s preliminary findings to the
notice of his boss Raj Kumar
It was then the team realised that the
company was committing fraud and
potentially harming patients on a global scale

57. WB -The Ranbaxy Case
He escalated it into a 4 page report to the CEO
Brian Tempest, and still no action was taken
He was accused of downloading pornography
on his office computer
When no action was taken for 2 weeks, he
masked his identity and sent a message
directly to FDA Commissioner Lester Crawford
on August 15, 2005
The rest is history

58. WB -The Ranbaxy Case
It was found that adulterated drugs were
manufactured and distribution in 2 Indian
facilities misrepresenting clinical generic drug
data
These included drugs destined for treatment of
HIV/AIDS in Africa
They were fined $150 million to settle civil claims
and $350 million for state laws

59. Refer example of good relations
Japanese example- taxi

60. Psychological Factors
• Individual mental characteristics
• Personality
• Attitudes
• Values
• Perception
• Learning

61. Causation of Human Behaviour
Input
(Environment)
Output
(Behaviour)
Thruput
(Evaluation)
Feedback

62. MODELS OF MAN
Based on individual differences, individuals are
classified as under:-
Rational Economic Man
Self- Actualising Man
Complex Man
Social Man
Organization Man

63. Rational Economic Man
• Oldest model of man
• Man works hard to earn
more in a rational manner
• He can be motivated
through incentives to
increase his efficiency –
piece rate
• Organisation will continue
only till contribution from
employee matches the cost

64. Self – Actualising Man
• Assumes that man is self
motivated and controlled
• Economic incentives have
their own drawbacks
• Based on Maslow’s Theory
• Sense of achievement gives
satisfaction

65. Complex Man
• Behaviour of individuals is caused
due to individual differences,
making them unpredictable
• Hence human behaviour is complex
• Managerial actions should consider the
complex variables affecting human behaviour

66. Social Man
• Based on the assumption that man is
influenced by social variables
• Social relationships more
important than economic
motives
• HR approach
• Concerned with people’s
feelings in the organisation

67. Organisation Man
• Concept developed by Whyte
• He is an extension of the social
man
• Importance to loyalty
• Cordial relationship with
co-workers
• Organisation takes care of
employee needs

68. MODELS OF INDIVIDUAL BEHAVIOUR
• Theory X and Theory Y
• Economic (scientific management) & Self-
actualising Model (self fulfilment, personal
growth and job competence)
• Behaviouristic (observable behaviour) and
Humanistic ( conscious reasoning) Model
• Rational (collecting relevant information and
then analysing it) & Emotional ( unconscious
responses guided by emotions) Model

69. MARS Model
Behaviour and
Performance
Situational
Factors
Role Perception
Ability
Motivation