This document provides an overview of organizational behaviour. It discusses key topics like organizations, behaviour, management functions, leadership theories, and models of organizational behaviour. Some main points: - Organizational behaviour studies how individuals, groups, and structure influence behaviour in organizations. It applies knowledge about these factors to make organizations work more effectively. - The five main management functions are planning, organizing, staffing, directing, and controlling. Leadership theories discussed include trait, behavioural, and contingency theories. - Models of organizational behaviour examine individual, group, and organizational levels of analysis and their interplay. Key dependent variables include productivity, absenteeism, and job satisfaction. - Challenges for

1. Organizational
Behaviour
• Prepared By-
Prof. Niraj Rajyaguru
NET (Management)
NET (Commerce)
MBA (Marketing)
M.com (Marketing)
M. Phil (Pursuing)

2. Organizational Behaviour
Unit – 1 Basic Understanding of the
context of Organizational Behaviour

3. Organization
• The Term Organization means an entity, such as an
institution or association, that has a collective goal
and is linked to an external environment.
• On the basis of this definition manufacturing and
service firms are organizations, and so schools,
hospitals, Temples, Police Department, government
agencies.

4. Behaviour
• “It is the response of the system or
organism to various stimuli or
inputs, whether internal or
external, conscious or sub
conscious, overt or covert, and
voluntary or involuntary.”

5. Organizational Behaviour
• “Organizational Behaviour is a field of study that
investigates the impact that individuals, groups and
structure have on behaviour within organization.”
• “Organizational Behaviour is the term used to
describe the actions and reactions of individuals and
groups in the system as they interact with each other
in the course of their working day.”

6. • Organizational behaviour is a field of study.
• It studies three determinants of behaviour in
organizations:
 Individual
 Group
 Structure
• Organizational behaviour
applies the knowledge gained
about individuals, groups,
and the effect of structure on
behaviour in order to make
organization work more
effectively.

7. What Managers Do

8. What is Management?
• It is the art of getting things done through
others
• Perform the functions of management to
achieve organizational goals

9. Importance of Management
• Improves relations
• Encourages team work
• Encourage innovations
• Motivates employee
• Optimum use of resources

10. Levels of Management
TOP LEVEL
MIDDLE LEVEL
LOWER LEVEL

11. 5 Important functions of
management
Planning
Controlling
Directing
Organizing
Staffing

12. Planning
• Planning is deciding in advance what is to be done in
the future
• “According to koontz and O ‘Donnell defines
planning is deciding in advance what to do, how to do
it, when to do it and who is to do it. Planning bridges
the gap from where we are to where we want to go. It
makes it possible for things to occur which would not
otherwise happen”

13. Organizing
• It is the process of identifying & grouping works
• Defining & delegating responsibility
• Authority & establishing relationships
• Helps to work efficiently
• According to Henri Fayol “To organize a business
means to provide it with everything useful to its
functioning-raw materials, tools, capital and
personnel”

14. Staffing
• Ensuring of the right person for the right job at the right time
• According to koontz and O Donnel “The managerial functions
of staffing involves manning the organizational structure
through proper and effective selection, appraisal and
development of personnel to fill the roles designed in to the
structure.

15. Directing
• Giving instructions, guiding, counseling, motivating
and leading staffs
• To achieve organizational goals
• It is concerned with the execution of plans through
organized action.

16. Controlling
• Involves measuring against the established objectives and
goals
• Linked with planning
• “ according to Harold koontz controlling is the measurement
and correction of performance in order to make sure that
enterprise objectives and the plans devised to attain them
are accomplished”

17. Mintzberg’s Management Roles

18. Management skills
 Technical skills- the ability to apply specialized
knowledge or expertise.
 Human skills- the ability to work with, understand,
and motivate other people, both individually and in
groups.
 Conceptual skills- the mental ability to analyze and
diagnose complex situations.

19. Importance of Organizational
Behaviour
Through Organizational Behaviour a Manager can know..
 How to Motivate subordinates
 How to lead
 Attitude of workers
 Value system
 Methods of Enhance Job Satisfaction
 How to Develop Team spirit
 How to solve disputes

20. Disciplines that contribute to the OB Field:-
Psychology
Sociology
Social psychology
Anthropology

21. Disciplines that contribute to the OB Field:-
Psychology:- Psychology is the science that seeks to
measure, explain and sometimes change the
behaviour of humans and animals. Psychologist
concern themselves with studying and attempting to
understand individual behaviour.
Earlier Psychologist Modern
Psychologist
Fatigue Learning Perception
boredom Personality Training
Working condition Leadership Motivation
Job satisfaction Performance appraisal
Attitude Stress

22.  Sociology:- Sociology studies People in relation to
their social environment or culture. Sociologist have
contributed to OB through their study of group
behaviour in organizations, Organizational culture,
communication, power and conflict.
Social Psychology:- It focuses on peoples influence
on one another. One major area receiving
considerable investigation from social psychology has
been change- how to implement it and how to reduce
barriers to its acceptance. Social psychologist making
contribution in areas of understanding and changing
attitudes, building trust etc.

23. Anthropology:- Anthropology is the study of
societies to learn about human beings and their
activities. Anthropologists’ work on cultures and
environments has helped us understand differences in
fundamental values, attitudes and behaviour between
people in different countries and within different
organizations.

24. Challenges and Opportunities for OB
Responding to Globalization
• Increased Foreign Assignments
• Working with people from different cultures
• Coping with anticapitalism Backlash
• Overseeing Movement of Jobs to Countries with low Cost
Labour
• Managing people during the war on Terror
 Managing Workforce Diversity
• Workforce diversity
• Embracing diversity
• Changing demographics

25. 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 conflict
Creating a positive work environment
Improving Ethical Behaviour

26. Challenges and Opportunities for OB
• 1.Responding to Globalization
– Increased foreign assignments
– Working with people from different cultures
– Coping with anticapitalism backlash
– Overseeing movement of jobs to countries with
low-cost labor
– Managing people during the war on terror

27. • 2.Managing workforce diversity
– Workforce diversity:
• Gender, race, national origin, age, disability, ethnicity
– Embracing diversity
– Changing demographics
• Workforce diversity can increase creativity and
innovation in organizations as well as improve
decision making by providing different
perspective on problem.

28. • 3.Improving quality and productivity
– “Almost all quality improvement comes via
simplification of design, manufacturing, layout,
processes, and procedures.”----Tom Peters
– Today’s managers understand that success of any
effort at improving quality and productivity needs
process reengineering and quality management with
extensive employee involvement.

29. • 4.Improving people skills
• Here are some points that create challenge for
a manager to improve skill in people at work
place.
– Learn a ways to motivate people
– How to be a better communicator
– How to create more effective teams

30. • 5.Empowering people
– Decision making is being pushed down to the operating
level, where workers are being given the freedom to
make choices about schedules and procedures and to
solve work-related problems.
– Self-management team
– Managers are empowering employees.
– Managers-how to give up control
– Emplyees-how to take responsibility for their work and
make appropriate decisions

31. • 6.Stimulating innovation and change
– Today’s successful organizations must foster
innovation.
– An organization’s employees can be the impetus for
innovation and change or they can be a major
stumbling block.
– The challenge for managers is to stimulate their
employees’ creativity and acceptance for change.

32. • 7.Coping with “temporariness”
– Managing today would be more accurately described as
long periods of ongoing change, interrupted occasionally
by short periods of stability!
– So workers need to continually update their knowledge
and skills to perform new job requirements.

33. • 8.Helping employees balance work/life conflicts
– A number of forces have contributed to blurring the
lines between employee work and personal lives.
– First, the creation of global organizations means their
world never sleeps.
– Second, communication technology allows employee to
do their work at home, in their car, or on the beach in
Tahiti.
– Third, organizations are asking employees to put in
longer hours.
– Finally, fewer families have only a single breadwinner.

34. • 9.Improving ethical behavior
– Members of organizations are increasingly finding
themselves facing ethical dilemmas, situations in
which they are required to define right and wrong
conduct.
– In recent years, the line differentiating right from
wrong has become even more blurred.
– Managers and their organizations are writing and
distributing codes of ethics to guide employees
through ethical dilemmas.

35. • 10. Improving customer service
-In this consumer centric market it becomes
challenging to provide best services to customers.
• 11.Working in networked organization
-Computerization, the internet and the ability to link
computers within organization and between
organizations have created a different workplace for
many employees- a Networked organization. It is
challenging for traditional managers to settle down
and perform his functions at these type or
Organizations.

36. Basic OB Model
• OB model proposes that there are three levels of analysis in
OB and that, as we move from the individual level to the
Organizational level, we add systematically to our
understanding of behaviour in organizations. In OB model
each level is constructed on the previous level. Group
concept grow out of the foundation laid in the individual
section; we overlay structural constraints on the individual
and group in order to arrive at organizational behaviour.

37. The Dependent Variables
Following are the primary dependent variables in OB
• Productivity
• Absenteeism
• Turnover
• Job satisfaction
• Deviant workplace behaviour
• Organizational Citizenship Behaviour (OCB)

38. The Dependent Variables (cont’d)

39. The Dependent Variables (cont’d)

40. The Dependent Variables (cont’d)

41. The Dependent Variables (cont’d)

42. The Independent Variables
Independent
Variables
Individual-Level
Variables
Organization
System-Level
Variables
Group-Level
Variables

45. Leadership
• “Leadership is the ability to influence a
group towards the achievement of a vision or
set of goals.”

46. • Focus on things
• Do things right
• Plan
• Organize
• Direct
• Control
• Give Orders
• Focus on people
• Do the right things
• Inspire
• Influence
• Motivate
• Build
• Take initiate

49. Theories of Leadership
• Great Man Theory
• Trait Theories
• Behavioural Theories
• Contingency Theories
• Leader-Member Exchange (LMX) Theory

50. “Great Man” Theories
• great leaders are simply born with the
necessary internal characteristics such
as charisma, confidence, intelligence,
and social skills that make them natural-born
leaders.
• Great man theories assume that the
capacity for leadership is inherent – that
great leaders are born, not made.
• The term "Great Man" was used
because, at the time, leadership was
thought of primarily as a male quality,

51. Trait Theories
• Similar in some ways to Great Man theories,
• Trait theories assume that people inherit certain qualities and
traits that make them better suited to leadership.
• leaders like Buddha, Napoleon, Gandhi, Churchill, Hitler,
Ratan tata, Narayan murthy, Dhirubhai ambani are recognized
as leaders and discribed in terms such as Charismatic,
Enthusiastic, and Courageous.

52. • Big five personality framework give some
important inputs to Understand Trait Theory.
• It becomes clear that most of the dozens of traits emerging in
various leadership reviews could be subsumed under one of
the Big Five personality frame work like..
 Extraversion (Extrovert, Active, Active, High energy... Etc.)
 Agreeableness (cooperative, good nature, trustful.. Etc.)
 Conscientiousness (conscientious, dependable, Persistent.. Etc.)
 Emotional stability (calm, confident, secure... Etc.)
 Openness (creative, Curious, artist.. Etc.)
• This approach resulted in consistent and strong support for
traits as predictors of leadership.

53. • Number of research conclude that if consider Big Five
Personality framework- ‘Extraversion’ is the most important
trait of effective leader.
• Assertive is important Extravert is a positive.
• High Assertiveness - Less effective leader
• Moderate Assertiveness - More effective leader
• Conscientiousness and openness Strong and
consistent relationship to leadership
• Agreeableness and emotional stability weren't
strongly correlated with leadership

54. • Recent studies are indicating that another trait that
may indicate effective leadership is emotional
intelligence (EI)
• A core component of EI is empathy. Empathetic
leaders can sense other’s needs, listen to what
followers say (and don’t say) and are able to read the
reactions of others.

55. Behavioral Theory
In contrast with trait theory, behavioral theory
attempts to describe leadership in terms of what
leaders do, while trait theory seeks to explain
leadership on the basis of what leaders are. Leadership
according to this approach is the result of effective role
behavior. Leadership is shown by a person’s acts more
than by his traits.

56. • Trait research provides a basis for
selecting the “Right” persons to assume
formal positions in groups and
organizations requiring leadership. In
contrast, behavioural theory believes- we
could Train people to be leader.
• Trait theory assume that leaders are born
rather than made. However Behavioural
theories assume there were specific
behaviours that identified leaders, we
could teach leadership; we could design
programs that implanted these
behavioural patterns in individuals who
desired to be effective leaders

57. Ohio state studies
• The most comprehensive behavioural theories
resulted from research that began at Ohio State
University in the late 1940s.
• Researcher at ohio state identify 1000 dimensions and
categories in two heads that accounted for most of the
leadership behaviour described by employees
 Initiating structure
 Consideration

58. Ohio State Studies
Initiating Structure
The extent to which a leader is
likely to define and structure his
or her role and those of sub-ordinates
in the search for goal
attainment.
Consideration
The extent to which a leader is likely to have job
relationships characterized by mutual trust, respect
for subordinate’s ideas, and regard for their feelings.

59. • The follower of leaders who were high in
consideration were more satisfied with their jobs and
more motivated and also had more respect for their
leader.
• Initiating structure was more strongly related to
higher levels of group and organization productivity
and more positive performance evaluations.

60. University of Michigan studies
• Leadership studies undertaken at the University of Michigan’s
survey research centre at about the same time as those being
done at Ohio state had similar research objectives:
• “To Locate behavioural characteristics of leaders
that appeared to be related to measures of
performance effectiveness.”

61. University of Michigan Studies
• The Michigan group also came up with two dimensions of
leadership behaviour-
Employee-Oriented Leader
Emphasizing interpersonal relations; taking a
personal interest in the needs of employees and
accepting individual differences among members.
Production-Oriented Leader
One who emphasizes technical
or task aspects of the job.

62. This dimension of Michigan studies are closely
related with the Ohio state dimensions.
• Employee oriented leadership is similar to
Consideration.
• Production oriented leadership is similar to
initiating structure.

63. • Michigan studies researchers arrived at conclusion
that Employee Oriented leaders were associated with
higher group productivity and greater job satisfaction.
While production oriented leaders are less productive
and with poor job satisfaction.
• Ohio state studies conclude that both consideration
and Initiating structure are important to effective
leadership.

64. Managerial Grid
• Drawing from Ohio state and Michigan studies, Blake and
Mouton proposed a managerial grid (leadership grid) based on
the style of “Concern for people” and “concern for
production”, which essentially represent the Ohio state
dimensions of considerations and initiating structure or the
Michigan dimensions of employee oriented and production
oriented.

65. The Managerial
Grid
(Blake and Mouton)

66. • Based on the findings of Blake and Mouton,
managers were found to perform best under a 9,9
style, as contrasted, for example, with a 9,1 (authority
type) or 1,9 (laissez-faire) style.

67. CONTINGENCY THEORIES
• All Consider the Situation
– Fiedler’s Contingency Model
– Cognitive Resource Theory
– Hersey and Blanchard’s Situational Leadership
Model
– Path Goal Theory

68. Fiedler Model
• The first contingency model for leadership was developed by Fred
Fiedler.
• Leader: Style is Fixed (Task oriented vs. Relationship oriented)
• Assumption: Leader’s Style is Fixed & Can be Measured by the
Least Preferred Co-Worker (LPC) Questionnaire.

69. LPC Questionnaire-
• The LPC Questionnaire contains sets of 16 contrasting
adjectives.
• It asks respondent to think of all the co-workers they have ever
had and to describe the one person they Least enjoyed working.
• Fiedler believes that based on the respondents answer to the LPC
questionnaire, he can determine their basic leadership style.
• If you essentially describe the person you are least able to work
with in favourable terms, Fiedler would label you relationship
oriented. In contrast if the least preferred co-worker is seen in
relatively unfavourable terms (a low LPC score), the respondent
is primarily interested in productivity and thus would be labelled
task oriented.

70. • Defining the situation-
• After an individual’s basic leadership style has been assessed
through the LPC questionnaire, it is necessary to match the
leader with the situation. Fiedler has identified three
contingency dimensions.
– Leader-member relations
– Task structure
– Position power

71. Fiedler’s Model: Defining the
Situation
Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.
Task Structure
Degree of Job (structured or unstructured)
Position Power
Influence derived from one’s formal structural
position in the organization; includes power to hire,
fire, discipline, promote, and give salary increases.

72. Matching Leadership style and Situations
Performance
• Category
• Leader-Member
Relations
• Task Structure
• Position Power
I
Good
High
Strong
II
Good
High
Weak
III
Good
Low
Strong
IV
Good
Low
Weak
V
Poor
High
Strong
VI
Poor
High
Weak
VII
Poor
Low
Strong
Task-Oriented
VIII
Poor
Low
Weak
Good
Poor
Relationship
-Oriented
Favorable Moderate Unfavorable

73. Cognitive Resource Theory
• In cognitive resource theory Fiedler focuses on the role of
stress as a form of situational unfavourableness and how a
leader’s intelligence and experience influence his or her
reaction or stress.
• Stress is the enemy of rationality. It’s difficult for leaders to
think logically and analytically when they’re under stress.
Moreover, the importance of a leader’s intelligence and
experience to effectiveness differs under low and high stress
situations.
• Less intelligent individuals perform better in leadership roles
under high stress than do more intelligent individuals.
• Less experienced people perform better in leadership roles
under low stress than do more experienced people.

74. Hersey and Blanchard’s Situational
Theory
• This Model called- Situational leadership theory (SLT) has
been incorporated into leadership training programs at more
than 400 of the fortune 500 companies and more than 1million
managers per year from a wide variety of organizations are
being taught its basic element.
• SLT theory focus on followers and readiness.
• Followers can check effectiveness of leader, and can accept or
reject them.
• The term readiness, refers to the extent to which people have
the ability and willingness to accomplish a specific task.

75. Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness; the more “ready” the followers (the more
willing and able) the less the need for leader support
and supervision.
LOW Amount of Follower Readiness HIGH
Amount of Leader Support
&
HIGH Supervision Required LOW

76. • Hersey and Blanchard identify four specific leader
behaviour-
If followers are...
1) Unable and Unwilling- The leader needs to give clear and
specific directions.
2) Unable and willing- The leader needs to display high task
orientation to compensate for the follower’s lack of ability.
3) Able and Unwilling- The leader needs to use a supportive
and participative style.
4) Able and willing- The leader doesn’t need to do much.

77. Leadership Styles and Follower Readiness
(Hersey and Blanchard)
Unwilling Willing
Able
Unable Directive High Task
Orientations
Supportive
Participative
Monitoring
Follower
Readiness
Leadership
Styles

78. Path-Goal Theory
• Path-Goal theory believes that leader’s job to provide
followers with the information, support or other resources
necessary for them to achieve goals.
• The term path goal is derived from the belief that effective
leaders clarify the path to help their followers.

79. • Leader Behaviours-
• Directive leader- schedules work to be done, and gives
specific guidance as to how to accomplish tasks.
• Supportive leader- supportive leader is friendly and shows
concern for the needs for followers.
• Participative leader- consults with followers and uses their
suggestions before making a decision.
• Achievement oriented leader- sets challenging goals and
expects followers to perform at their highest level.

80. • Path-Goal theory proposes two classes of contingency
variables that moderate the leadership behaviour-outcome
relationship.
 Environmental contingency factors- (that are outside
the control of employee.)
 Personal characteristics- (almost under the control of
employee)

81. The Path-Goal Theory

82. Leader-Member Exchange (LMX)
Theory
• The leader member exchange theory argues that, because of
time pressure leaders establish a special relationship with a
small group of their followers. These Individuals make up the
in-group.
• Members of In-group are trusted, get a special response,
receive special privilege.
• Other followers fall into the out-group. They get less of the
leader’s time, get fewer of the preferred rewards that the leader
controls, and have leader follower relations based on formal
authority interactions.

83. Leader-Member Exchange Theory

84. Decision Theory: Vroom and Yetton’s
Leader-Participation Model
Premise:
•Rule based decision tree to guide leaders about
when and when not to include subordinate
participation in decision making
•Considers 12 contingency variables to consider
whether or not to include subordinates in decision
making

85. Contingency Variables in the
Revised
Leader-Participation Model
1. Importance of the decision
2. Importance of obtaining follower commitment to the decision
3. Whether the leader has sufficient information to make a good decision
4. How well structured the problem is
5. Whether an autocratic decision would receive follower commitment
6. Whether followers “buy into” the organization’s goals
7. Whether there is likely to be conflict among followers over solution
alternatives
8. Whether followers have the necessary information to make a good decision
9. Time constraints on the leader that may limit follower involvement
10. Whether costs to bring geographically dispersed members together is
justified
11. Importance to the leader of minimizing the time it takes to make the decision
12. Importance of using participation as a tool for developing follower decision
skills