This document provides an overview of organizational behavior prepared by Mehul Rasadiya of K.K. Parekh Institute of Management Studies in Amreli, India. It defines OB as the study of human behavior in organizational settings and applying that knowledge to improve organizational effectiveness. It discusses the historical development of OB, fundamental concepts, contributing disciplines, models of OB, social systems and organizational culture, international dimensions, and limitations and future of OB. Key concepts covered include individual differences, organizations as social systems, and the need for management.

1. Prepared by :-
Mehul Rasadiya
(K.K.Parekh Institute of Management Studies)
(Amreli)
Mehul Rasadiya

2.  Organizational Behavior –
Introduction, definition, goals, elements
 Historical development of Organizational
Behaviour
 Fundamental concepts
 Contributing disciplines to OB
 Models of OB
 Social systems and organizational culture
 International dimensions of organizational
behaviour
 Limitations of Organizational behaviour,
 The future of OB.
Mehul Rasadiya

3.  Human beings depend on organization from birth to
death
 Most people neglect organizations, unless they fail to
deliver goods and services
 Need for effective organizations as they provide goods
and services at reasonable cost
 OB contributes for organizational effectiveness
Mehul Rasadiya

4.  Behaviour is a function of person and environment
 Different people different behaviour
 Behaviour may be desirable or undesirable
 Managers have to manage both person and
environment in organizations to achieve desired goals

5.  Organization is a set of people working together to
achieve shared goals
 OB is the study of human behaviour in organizational
settings
 OB offers tools and techniques to manage behaviour in
organization
Mehul Rasadiya

6.  So, OB is the study of human behaviour in an
organization environment, and applying the
knowledge derived from this study to improve
organizational effectiveness
 OB deals with behaviour of individuals and groups
within organizations and the interaction between
organizational members and their external
environment
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7.  Stephen P Robbins, “ OB is a field of study/ that
investigates the impact /that individuals, groups and
structure/ have on behaviour within organizations /for
the purpose of /applying such knowledge towards
improving an organization’s effectiveness”
 It is the common body of knowledge which studies
individuals, groups and effect of structure on behaviour
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8.  Describe behaviour: goal is to describe systematically
how people behave under variety of conditions. If this
goal is achieved managers can define behaviour of
employees easily
 Understand: goal is to understand why people behave
as they do. It is to understand the reason behind those
behaviours
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9.  Predict: goal is to empower managers with a capacity
to predict or anticipate employee/ people behaviour. It
is to anticipate which employee might be successful,
who might be absent, who might cause problem etc.
this helps managers to prepare concrete plans & take
preventive actions wherever necessary
 Control: Goal is to control and develop the human
activity at work. This is to minimize undesirable
behaviour and develop desirable behaviour in the
organization
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10. Elements of OB
People, their
Company Co. level of
Organization
philosophy, culture, lead satisfaction, structure,
values, visio ership, comm motivation, technology
n, goals unication growth &
development
Note: Company philosophy can be the principles or foundations
Around Which company works
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11.  Koutilya’s Arthashastra states that there was
systematic management of human resources during
4th Century BC itself
 Minimum wage rate, incentive wage plan concepts
were included in Babylonian civilization during 1800
BC
 Actual development of OB can be traced from
beginning of the 19th Century
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12.  Prior to 19th Century, condition of workers was
miserable
 Industry Revolution, which happened during 19th
Century benefitted employees in terms of increased
wages and reduced working hours
 Robert Owen, Andrew and J N Tata were the pioneers
in providing welfare facilities to workers
 But they were criticized of following do-good-
approach
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13.  During Scientific Management Era, Taylor focused on
human resources at work, but he wanted to rationalize
everything & his sole aim is to get more output from
workers
 Failure of Scientific Management gave birth to human
relations movement, which heavily emphasized on
employee cooperation and morale
 3 contributing factors to human relations movement
are; Great Depression, Labour Movement and
Hawthorne Studies
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14.  Every discipline- social science or physical science-
have assumptions or principles
 Ex: Financial Accounting one of the principles says, for
every debit there shall be a corresponding credit
 Ex: Law of gravity is common everywhere
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15.  There are differences between individuals
 A whole person
 Behaviour of an individual is caused
 An individual has dignity
 Organizations are social systems
 Mutuality of interest among organizational
members
 Holistic organizational behaviour
 Need for management
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16.  First four are around people
 Next two are concerned with organizations
 Last two are combination of first five assumptions
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17. Individual
differences Social systems
Whole person
OB Mutuality of
interests
Caused behaviour
Human dignity Holistic approach
Need for
management
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18. 1. Individual Differences:
There are differences between people. Be it in
intelligence, physique, personality or any other trait, they
are different. This concept comes from psychology
2. A whole person:
When an individual is appointed, hisher skill alone is
not hired, hisher social background, likes, dislikes are
also hired. A person’s family life can not be separated
with work life.
3. Caused behaviour:
Behaviour of an employee is caused, not random. Behind
every behaviour, there will be a cause, reason.
Management should find that cause if it wants to manage
the behaviour
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19. 4. Human dignity:
People have to be treated differently from other factors
of production. People should be treated with respect
and dignity. It rejects the old idea of using people as
economic tools.
5. Organizations as social systems:
Organizational activities are governed by social status,
rules & regulations & psychological needs. It implies
that environment is dynamic. All parts are
interdependent and subject to influence by any other
part.
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20. 6. Mutuality of interest:
It represents the statement “ organizations need people &
people also need organizations”. Organizations utilize
people to achieve their goals. People see organizations to
satisfy their needs or desires.
7. Holistic organizational behaviour:
When first 6 concepts are placed together holistic concept
emerges. Interprets that people organization relationship
expressed in terms of whole people, whole group, whole
organization, & whole social system.
8. Need for management:
Knowledge derived from OB study will be utilized in
improving organizational effectiveness. And management
uses this knowledge. While studying OB, management
needs should be considered.
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26. Personality
Perception
Learning
Attitudes and
attribution
Individual
Motivation
Behaviour
Group dynamics
Team dynamics
Leadership Organizational
Power and politics Group Behaviour
Effectiveness
Communication
Conflict
Organizational Culture
Human resource Policies &
Practices
Organization
Work Stress
Organization Change &
Development
Mehul Rasadiya

27.  Keith Davis recognizes four different models of OB. These models
show evolution of the thinking and behaviour on the part of
management and managers alike. The four major models or
frameworks that organizations operate out of:
1. Autocratic - The basis of this model is power with a managerial
orientation of authority. The employees in turn are oriented
towards obedience and dependence on the boss. The employee
need that is met is subsistence. The performance result is
minimal.
2. Custodial - The basis of this model is economic resources with a
managerial orientation of money. The employees in turn are
oriented towards security and benefits and dependence on the
organization. The employee need that is met is security. The
performance result is passive cooperation.
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28. 3. Supportive - The basis of this model is leadership with a
managerial orientation of support. The employees in turn
are oriented towards job performance and participation.
The employee need that is met is status and recognition.
The performance result is awakened drives.
4. Collegial - The basis of this model is partnership with a
managerial orientation of teamwork. The employees in
turn are oriented towards responsible behavior and self-
discipline. The employee need that is met is self-
actualization. The performance result is moderate
enthusiasm.
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30. Social System:
 A social system is complex set of human relationships
interacting in many ways
 Within an organization, it includes all the people in it
and their relationships to each other and to the outside
world
 Behaviour of one member can have impact on the
behaviour of others.
 It does not have boundaries, it exchanges goods, ideas,
culture, etc. with the environment around it.
Mehul Rasadiya

31.  Organizational Culture:
 Culture is the conventional behavior of a society that
encompasses beliefs, customs, knowledge, and
practices
 Culture gives them
stability, security, understanding, and the ability to
respond to a given situation.
 Individualization is when employees successfully
exert influence on the social system by challenging
the culture
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32.  For a creative environment match of high socialization and
high individualization should be implemented in an
organization
 Individualization favors individual rights, personal
rewards, it looks for number 1 or the best
 Socialization favors group, harmony and asks "What is best
for the organization?"
 Organizations need people to challenge, question, and
experiment while still maintaining the culture that binds
them into a social system.
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33.  Organizations are expanding beyond their national
boundaries
 The world has entered an era of global economic
activity
 4 aspects of International dimension of OB:
 Behaviour across cultures
 Culture determines behaviour
 Culture clusters
 Cultural diversity
Mehul Rasadiya

34. 1. Behaviour across cultures:
Behaviour in organizational settings varies across
cultures. HR practices too vary across cultures. Ex: in
Australia & Brazil, employees with 1 year of service
are automatically given 30 days of paid vacation
2. Culture determines behaviour
Culture influences behaviour. Cultural norms & values
guide everyday life of individuals. These norms &
values will pass to future generation through cultural
symbols, stories & rituals.
Mehul Rasadiya

35.  Cultural norms: behaviours & practices, tell us what we
can do or what we can not do
 Cultural values: tell us what is dear to our hearts. Ex:
American culture values freedom, this is towards
individualization. Japanese culture finds a higher value
in belonging. Belonging to a group is ore important
than individualism.
Mehul Rasadiya

36. 3.Culture clusters:
 Represent countries that share cultural similarities.
Similarities can be in same language, currency
usage, etc
 International businesses utilize this culture-clustering
approach in formulating global strategies. People with
identical culture behaviour can be grouped
4. Cultural Diversity:
By adopting cultural diversity, an organization can
become more effective. It will become more flexible &
can manage behaviour easily. One culture may benefit
from other culture
Mehul Rasadiya

37.  OB is a means to improve, not an absolute answer for
problem
 OB results wont give any assurance for future
behaviour
 OB is a fad. Concepts has become vague now. Ex:
transparency, open cabin
 OB is selfish & exploitative: practically it serves
interest of management
Mehul Rasadiya

38.  In future employee focus will change towards career
development & recognition
 Task will become flexible in nature to avoid monotony
& boredom in work place
 Organization’s structural changes [ boundary less,
network or project structures]
 Internationalization of business brings cultural &
behavioural complexity
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39.  Define Organizational Behaviour. [3 marks]
 Explain OB models. [7 marks]
 Explain limitations & future of OB. [10 marks]
 Explain fundamental concepts of OB. [7 marks]
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