This document provides an overview of organizational behavior (OB). It defines OB as the study and application of knowledge about how people behave individually and in groups within organizations. The key elements that determine OB are people, structure, technology, and the external environment. Managers play important roles in OB, including interpersonal, informational, and decisional roles. OB draws from various social sciences and has several theoretical approaches, including the scientific management, human resource, contingency, and systems approaches. Managers face both challenges and opportunities when applying OB concepts, such as managing workforce diversity, stimulating innovation and change, and improving ethical behavior.

1. ORGANIZATIONBEHAVIOR

2. Topic Layout
Organization Behavior – Concept &
Definition
Importance & Key Elements of OB
Role of Managers in OB
Foundations/Approaches to OB
Challenges / Opportunities for OB

3. Organization Behavior – Concept & Definition
 In this unit, we will be discussing the nature of
organizational behaviour and its importance for managers.
 As we all know that the most difficult task for a manager is
to motivate people, who have different personalities,
needs, perceptions, values and attitudes.
 No two individuals are alike, hence organisational
behaviour is introduced in this scenario.
 O.B. is made up of two words: organization and behaviour,
which means understanding the organization and
understanding behaviour of people in the organization.

4. Organization Behavior – Concept & Definition
 An Organization defined to be a group of two or more
people, who consciously contribute their efforts towards the
achievement of certain goals.
 Thus, Organizational Behavior (OB) is the study and
application of knowledge about how people, individually and
groups behave as individuals as well as in groups in the
organizations.
 Its main purpose is to build better relationships by achieving
individual objectives, group objectives, organizational
objectives and at last, social objectives.
 The study of Organizational Behaviour can be categorized
into Micro and Macro OB.
 Micro OB deals with individuals and groups, whereas Macro
OB deals with the organization at large.

5. Organization Behavior – Concept & Definition
Micro & Macro View of OB

6. Therefore, organizational behaviour helps managers to understand
and manage human behaviour at their work place.
Organization Behavior – Importance
OB
Understanding
of self &
others
Motivation of
Human
Resources
Effective
Communication
Effective
Organizational
Climate
Good Human
relations
Introduction
of change

7. Organization Behavior – Key Elements
 The key elements or determinants of OB are people, structure, technology
and the external environment in which the organization operates.

8. Role of Managers in OB
In the late 1960s, Henry Mintzberg, categorizes the role
of managers in 3 broad categories:

9. Foundation / Approaches to OB
OB is multidisciplinary in nature. OB is an applied behavioral science, which has
emerged out of a variety of social science disciplines
Approaches to OB
An Interdisciplinary
Approach
a) Psychology
b) Sociology
c)SocialPsychology
d) Anthropology
e) Political Science
Scientific
Management
Approach
Human
Resource
Approach
Contingency
Approach
System
Approach

10. Challenges / Opportunities for OB
There are a lot of challenges and opportunities for today’s managers in using
OB concepts. There are a number of dramatic changes taking place in the
form of threats as well as opportunities.
Globalization
Managing
Workforce
Diversity
Stimulating
Innovation &
Change
Improving
Ethical
Behaviour