Organizational behavior is the study of human behavior in organizational settings. It examines the interface between human behavior and organizations, and organizations themselves. There are various definitions of organizations provided by different authors that focus on groups cooperating under leadership to achieve common goals. Organizational behavior analyzes organizations as processes, structures, groups of people, and systems. It also examines classical theories of organization like bureaucratic, scientific management, human relations, and systems approaches.

1. Organizational behavior

2. Introduction:
Organizational behavior is "the study of human
behavior in organizational settings, the interface
between human behavior and the organization, and
the organization itself

3. Definition:
Different authors have defined organization in
different ways. The main definitions of
organization are as follows:
According to keith Davis, “Organization may be
defined as a group of individuals, large of small,
that is cooperating under the direction of
executive leadership in accomplishment of certain
common object.”

4. According to Chester I. Barnard,
“Organization is a system of co-operative
activities of two or more persons.”
According to Louis A. Allen, “Organization
is the process of identifying and grouping
the work to be performed, defining and
delegating responsibility and authority, and
establishing relationship for the purpose of
enabling people to work most effectively
together in accomplishing objectives.”

5. According to Mooney and Railey,
“Organization is the form of every
human association for the attainment of
a common purpose.”

6. NATURE OF ORGANIZATION
Organization is the foundation upon which the whole
structure of management is built.
 Organisation is related with developing a frame work
where the total work is divided into manageable
components in order to facilitate the achievement of
objectives or goals.
 Thus, organisation is the structure or mechanism
(machinery) that enables living things to work together. In
a static sense, an organisation is a structure or machinery
manned by group of individuals who are working together
towards a common goal.

7. Organization is the process of dividing and
combiningthe activities.It is the process of
organization which finds the means, human and
material to meet with situation foreseen.
Organization should have four P which form the
base of organization as follows
P:Purpose
P:Process
P:person
P:place

8. CONCEPT OF ORGANIZATIONAL
BEHAVIOUR
Alike ‘management’, the term ‘organisation’
has also been used in a number of ways.
broadly speaking, the term ‘organisation’ is used in
four different senses: as a process, as a
structure of relationship, as a group of persons
and as a system, as given below:
Organisation as a Process: In this first sense,
organisation is treated as a dynamic process and a
managerial activity which is essential for planning
the utilization of company’s resources, plant an
equipment materials, money and people to
accomplish the various objectives.

9. Organisation as a Framework of Relationship:
In the second sense organisation refers to the
structure of relationships and among position jobs
which is created to release certain objectives.
For example: According to Mooney and Reily,
“Organisation is the form of every human
association for the attainment of a common
purpose.”

10. Organisation as a Group of persons: In the
third sense, organisation is very often viewed as a
group of persons contributing their efforts
towards certain goals. Organisation begins when
people combine their efforts for some common
purpose.
It is a universal truth that an individual is unable
ability and resources. Barnard has defined
‘Organisation’ as an identifiable group of people
contributing their efforts towards the
attainment of goals

11. Organisation as a System:
In the fourth sense, the organisation is viewed as
system. System concepts recognize that
organizations are made up of components each of
which has unique properties, capabilities and mutual
relationship. The constituent elements of a system
are linked together in such complex ways that
actions taken by one producer have far reaching
effect on others.

12. In short, organizing is the determining, grouping
and arranging of the various activities deemed
necessary for the attainment of the objectives,
the assigning of people to those activities, the
providing of suitable physical factors of
environment and the indicating of the relative
authority delegated to each individual charged
with the execution of each respective activity

13. Principles of Organization
 There is no unanimity as to number of principles of
organization amongst the leading authors on the subject. L.K.
Urwick, in his paper ‘Scientific Principles of Organization’
(1938) and ‘Notes on the Theory of Organization’ (1952)
prescribed ten principles of organization. Thereafter, many
other writers on the subject have added a few more
principles of organization. The main principles of organization
are as follows:
 The Principle of Objective: Every enterprise, big or small,
prescribes certain basic objectives. Organization serves as a
tool in attaining these prescribed objectives. Every part of
the organization and the organization as a whole should be
geared to the basic objective determined by the enterprise

14. 2.Principle of Specialization
 Precise division of work facilitates
specialization. According to this principles division of
work between the employees must be based on their
ability, capability, tasks, knowledge and interest. This will
ensure specialization and specialization will lead to
efficiency, quality and elimination of wastage etc.

15. 3.The Scalar Principle
The principle is sometimes known as the ‘chain
command’. There must be clear lines of authority
running from the top to the bottom of the
organisation.
4.The Principle of Authority
Authority is the element of organisation
structure. It is the tool by which a manager is
able to create an environment for individual
performance

16. 5.The Principle of Unity of Command
 One subordinate should be kept in the supervision of one
boss only. This principle avoids the possibility of conflicts
in instructions
and develops the feeling of personnel responsibility for
the work.
6.The Principal Span of Control
 It is also known as ‘span of management’, ‘span of
supervision’ or ‘levels of organisation’, etc.

17. 7.The Principle of Definition
The contents of every position should be clearly
defined. The duties, responsibilities, authorities
and organizational relationship of an individual
working on a particular position should be well
defined.
8.The Principle of the Unity of Direction
The basic rationale for the very existence
of organisation is the attainment of certain
objectives. Major objective should be split into
functional activities and there should be one
objective and one plan for each group of people.

18. 9.The Principle of Supremacy of Organization
Objectives
The organization goals and objectives should be
given wide publicity within the organization. The
people contributing to it, should be made to
understand that enterprise objectives are more
valuable and significant and one should place one’s
personal motives under it.
10.The Principle of Balance
In every organization structure there is need
forbalance. For effective grouping and assigning
activities, this principle calls for putting balance on
all types of factors human, technical as well as
financial.

19. 11.The Principle of Human Element
 This principle indicates that the success or failure of an
enterprise largely depends on the handling of human
element. If the organisation has sound labor policies
along with a number of welfare activities it is bound to
succeed.
12.The Principle of Discipline
 According to his principle, it is the responsibility of the
management to maintain proper discipline in the
enterprise. Fayol considered discipline as ‘respect for
agreements which are directed at achieving obedience,
application, energy and outward mark of respect.”

20. Steps in the Process of Organisation
 Organisation means identifying, arranging and integrating
different elements of organisation into efficient working
order. It requires the management to follow the following
process of organisation.
Division of work
 The main function is divided into sub-functions and
entrusted to the different departmental heads. The result
is the establishment of departments like Purchase, Sales,
Production, Accounts, Publicity and Public relation.

21. The departments can be further classified just as production
department into (1) Planning (2) Designing, (3) Operations, (4) Production
Control and (5) Repairs and Maintenance. The division of the work is based
upon the fact that specialization is keynote of efficient organisation.
Grouping of Job and Departmentation
 The second step is to group similar or related jobs into larger units,
called departments, divisions or sections. Grouping process is called
departmentation.
 The department may be based upon functions such as manufacturing,
marketing and financing etc. Department may also be based on products,
such as textiles, cosmetic, stationery etc. These departments may have
different sections as per requirement.
 Grouping jobs or Departmentation aims at achieving coordination and
facilitates unity of efforts. The departments are linked together on
the basis of interdependence. The divided task is assigned to
specific individual or group of individuals who are supposed to be the
most qualified and specialized persons for the task.

22. Assigning duties
The work to be performed by every individual is clearly
defined and made known to him. Every one must know, what
he is required to do in order to avoid any misunderstanding,
duplication or overlapping in the work.
Granting authorities and fixing
responsibilities
Assigning of duties to individuals must coincide with the
appropriate and relevant authorities. Every employee must
know, what the authorities granted to him and for what and
to whom he will be responsible, liable and accountable.

23. Delegation of authority
 Those who are made responsible for specific tasks are
given due authority. Both responsibility and authority go
hand in hand together. Reasonable powers are delegated to
heads and supervisory staff to enable them to do their work
with ease and efficiency.
Effective communication
 Effective communication is the keynote of efficient
organisation. There should be proper arrangement of
communication messages from executives to subordinates
and vice-versa. Proper communication system establishes
harmonious relationship between employees and enables
execution of work in the right manner at the appropriate
time and in an atmosphere of perfect mutual adjustment.

24. Co-ordination of activities for common
objectives:
Business activity is a team work or the group
activity, so the efforts of every employee must
be co-ordinate effectively to achieve the common
objectives of the enterprise.
Classical Theory of Organization

25. Classical Theory of Organization
 Bureaucratic Organizational Model - Max Weber
This formal model includes
(1) a hierarchical arrangement with separation of authority,
(2)task specialization among employees (division of labor),
(3)Hiringof professional personnel based on technical
knowledge, (4) separation of personal & organizational
property and, (5) Implicit rules and regulations that govern
official decisions and actions. The intent is to maximize
rational decision-making and facilitate increased efficiency.
It is based on rational-legal authority rather than power
and persuasion. Rational legal authority is a belief that laws
can be enacted and changed by formally correct
procedures.

26. This organizational model has drawn the following criticisms
- Division of labor can stifle initiative and,
- Informal relationships and individual needs are ignored
Scientific Management - Frederick W. Taylor
This perspective focuses on increasing efficiency and
maximizing human productivity by identifying the "best"
way to do a job. Scientific analysis and time and motion
studies were used to identify and help eliminate muscular
and physiological activities that lead to worker fatigue. In
an effort to optimize work performance, pay was linked to
output. This theory has been criticized because it
embodies a mechanistic view of workers as extensions of
machines.

27. Human Relations Approach
The focus in this organizational theory is on the social and
affective needs of employees and emphasizes the
importance of feelings, attitudes and social climate of
organizations.
Although the basic organizational structure may resemble a
bureaucratic model, informal interactions that exist outside
bureaucratic norms or formal dimensions of an organization
are identified.
Employees whose social and psychological needs have
been fulfilled are motivated to work more
productively. The impact of human relations on employee
productivity has been demonstrated in two studies. The
results are known as the Hawthorne Effect.

28. The first experiment investigated the effect of increased
light on productivity. The results showed that increased
productivity was due to subjects' responses to attention
and novelty of the experiment and not to an increase or
decrease in light.
The second experiment (bank-wiring room), investigated
the relationship between increased financial incentives and
productivity. Results showed that workers establish
informal standards that define a "satisfactory" day's work.
Production greater or less than standard was unacceptable
to the group.

29. These two experiments showed that
(1) group norms are equal to or greater than managerial or
administrative norms in importance in determining a
productivity level,
(2) noneconomic rewards can increase productivity, and
(3)Group satisfaction and commitment are enhanced
through participatory decision making.

30.  The Hawthorne studies also showed that leadership style
has an effect on group performance. A "democratic" style
was found to be more effective for group performance
than either a "laissez-faire" or "authoritarian" style.
Leaders who give equal attention to initiating structure
(task performance) and consideration (friendship, trust,
respect, warmth, and concern) tend to be more
effective as measured by worker satisfaction and
performance. Within groups, there exists a both formal
and informal leader. Formal appointed leaders are
concerned with task performance while informal leaders
emerge for the group and attend to the group's social and
psychological needs.

31. Systems Approach
Systems can be viewed from three different perspectives: biological
(living organisms), mechanical (automobiles), and social (organizations).
Within each of these perspectives, there are two basic system types:
closed and open.
Closed systems, like the bureaucratic and human relations models, have
impenetrable boundaries and derive few inputs from environment.
Although thought to be self-sufficient, these systems can experience
entropy, a movement to disorder, lack of resource transformation, and
eventually death. In contrast, open systems have permeable boundaries
exchanging resources with the environment. Homeostasis exists when
the system is stable and there is a balance or equilibrium between
environmental resources and the system. Disequilibrium results when the
system is unable to use resources as they are received from the
environment or when its subsystems are out of balance. One criticism of
the systems approach is that it fails to adequately account for change
that results from interactions between people.

32.  Open Systems Approach
The open systems approach to organizational theory
emerged in the 1960s. Organizations were viewed as open
systems that interact with the environments in which they
exist. The relationship of organizational parts and the link
between the organization and its larger environment was
stressed. The input- throughput-output model was used to
describe this approach. Organizations maintain themselves
by processing inputs from their environment and converting
them into outputs.