This document defines organizational behaviour and discusses its importance and scope. Organizational behaviour is defined as the study of how individuals and groups act within an organization, with the goal of understanding, predicting, and influencing their behavior. It is important because it allows organizations to understand employees, motivate them, improve workplace relationships, utilize human resources effectively, and boost performance. The scope of organizational behaviour includes individual behavior, interactions between individuals, and group behavior.

1. Organizational Behaviour:
Definition, Importance and
Scope

2. Definitions
“Organisational behaviour is a subset of management activities
concerned with understanding, predicting and influencing
individual behaviour in organisational setting.”—Callahan,
Fleenor and Kudson.
“Organisational behaviour is a branch of the Social Sciences
that seeks to build theories that can be applied” to predicting,
understanding and controlling behaviour in work
organisations.”—Raman J. Aldag.
“Organisational behaviour is the study and application of
knowledge about how people act within an organisation. It is a
human tool for human benefit. It applies broadly to the
behaviour of people in all types of organisation.”— Newstrom
and Davis.

3. Characteristics of Organisational
Behaviour
1. Behavioural Approach to Management
2. Cause and Effect Relationship
3. Organisational Behaviour is a Branch of Social Sciences
4. Organisational behaviour encompasses the study of three levels
of analysis namely individual behaviour, inter-individual behaviour
and the behaviour of organisations themselves.
5. A Science as well as an Art

4. Importance of Organizational
Behavior (OB)
• Understand Organization and Employee
• Motivate Employees
• Good Workplace Relationships
• Predict and Control Human Behavior
• Effective Utilization of Human Resources
• Ensures Effective Communication
• Boost Performance

5. Scope of Organisational Behaviour
Scope of organizational behaviour extends to only three significant
concepts and these are given below:
• Individual Behaviour
• Inter-Individual Behaviour
• Group Behaviour
• Individual Behaviour
• An individual is studied from the personality, motivation,
interests, and attitudes of an organization. Various interaction
sessions and one-to-one are conducted to understand and study
the individual and make a perception about them.

6. • Inter-Individual Behaviour
• The inter-individual concept is when communication happens
among the employees. Inter-individuals represent persons with
their social group, subordinates, or senior employees in the
workplace. It helps understand leadership styles and qualities
and helps resolve conflicts quickly if any arise in the group
dynamics.
• Group Behaviour
• Group behaviour studies the formation of organisation, structure
and effectiveness of organisation. The group efforts made toward
achievement of organisation’s goal is group behaviour. In short,
it is the way how group behaves

7. Five Models of Organizational
Behaviour
The five models of organisational behaviour are the:
• Autocratic model
• Custodial model
• Supportive model
• Collegial model
• System model.
• Autocratic Model
• Autocratic model is the model that depends upon strength, power
and formal authority. In an autocratic organisation, the people
(management/owners) who manage the tasks in an organisation
have formal authority for controlling the employees who work
under them. These lower-level employees have little control over
the work function. Their ideas and innovations are not generally
welcomed, as the key decisions are made at the top management
level.

8. • Custodial model
• The custodial model is based around the concept of providing
economic security for employees – through wages and other
benefits – that will create employee loyalty and motivation.
• The underlying theory for the organisation is that they will have
a greater skilled workforce, more motivated employees, and have
a competitive advantage through employee knowledge and
expertise.
• One of the downsides with the custodial model is that it also
attracts and retains low performance staff as well.
• Supportive model
• The supportive model is focused around aspiring leadership. It is
not based upon control and authority (the autocratic model) or
upon incentives (the custodial model), but instead tries to
motivate staff through the manager-employee relationship and
how employees are treated on a day-to-day basis.

9. • Collegial model
• The collegial model is based around teamwork – everybody
working as colleagues. The overall environment and corporate
culture need to be aligned to this model, where everybody is
actively participating – is not about status and job titles –
everybody is encouraged to work together to build a better
organisation.
• The role of the manager is to foster this teamwork and create
positive and energetic workplaces.
• System model
• In the system model, the organisation looks at the overall
structure and team environment, and considers that individuals
have different goals, talents and potential. The intent of the
system model is to try and balance the goals of the individual
with the goals of the organisation.