Department of Business Administration.
Organizational Behavior (565)
Semester 3’ rd
ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD,
Define the importance of organizational behavior. How can we relate
total quality management (TQM) with organizational behavior?
Organization Behavior is a field of study that investigates
the impactthat individuals,groups, and structure have on behavior within
organizations for the purpose of applying such knowledge toward
improving an organization’s effectiveness.
Three determinantsof behaviorin organizations:
Individuals, groups and structure. Organization Behavior
applies the knowledge gainedaboutindividuals, groups, and the effect of
structure on behavior in order to make organizations work more
effectively. Organization Behavior is concerned with the study of what
people do in an organization and how that behavior affects the
performance of the organization.
Basic OB Model
Need of organizational behaviorin an organization:
The environmentof business is always changing. With
increases in workload and responsibilities, managershave found that their
importance in the work environmenthas alsoincreased. In order to help
managers and supervisors learn more about the complexity of the new
workforce many differentareas of study have been developed. In order to
understand the importance of organizationalbehavior, we must first define
exactly whatorganizationalbehavior is and whatit covers. Organizational
behavior is the study of attitudes and behavior ofindividuals and groups
in organizations.Organizationalbehavior tries to examine differenttypes
of workers in all types of differentsituations. Organizational behavior aims
to help managers and supervisors in many ways. It plays a role in all facets
of an organization.Finance, marketing, and production are just
departments within an organization. Itstudies the human behavior within
the organization and the relationshipbetween human behavior and the
Organizations are all around us. We are born in an
organization, we live, and work and most probably willdie in an
organization. Yetmost of us do not understand how people function,
behave and interactbetween each other within these organizations. We
also do not understand ifpeople shape an organization or an organization
In the beginning, people create an organization and shape
its mission and culture and later more people join the organization. This
new group of people adjust themselves within the existing organizational
culture. Sometimes they alsoinfluence organizationalculture by bringing
new and unique skills to the organization.
Sometimes they learn from each and at other times,
external forces like competition, political and cultural changes compel
them to learn new technical, communication or interpersonal skills. All
these internal and external factors help an organization and its people to
evolve to cope with the ever-changingworld.
OB applies the knowledge gained aboutindividuals, groups
and the effect of structure on behavior in order to make organizations work
more effectively. It is concerned with the study of what people do in an
organization and how that behavior affects the performance of the
organization.itis alsoimportantbecause it focus on the following areas.
OB is a way of thinking.
Ob is multidisciplinary.
There is a distinctly humanisticorientation with OB.
The field of OB is performed oriented.
The external environmentis seen as having significantimpacton OB.
Organizingis the process of arrangingand allocating
work, authority, and resources among organizations members so they
can achieve the organizations goals. The managers must match an
organizations structure to its goals and resources, a process called
organizational design.Organisation is the place where managerspractice
the artof management. An organization is a structured social system
consisting of groups and individuals working together to meet some
agreed upon objectives.
In other words an organization consistof people who, alone
and together in work group, strive to attain common goals. Behavior is a
way of action.
Is an ongoing and constant effort by all of an organization
function to find new ways to improve the quality of the organization goods
TQM is a managementphilosophy thatfocuses on customer
relationships and tries to build an environmentof trust and openness. All
the TQM initiatives and techniques necessitate high levels of
communication, adaptation, coordination and sequencing, which is
possible only in extremely effective teams. The concept of TQM therefore
requires managers to encourage employees to share ideas by forming
AdvantagesTQM in organization:
1. Team work
DisadvantageTQM in organization:
1. Takes long time
2. Things get worse before they get better
3. Require good labor relationship
Effectivenessof TQM in organization:
It has been observed in most cases that TQM through team
effort results in better and quicker solutions to problems, thereby ensuring
improvements in processes and operations. This, in turn, enhances the
quality and productivity of organizations.We have to take care following
A. The size of the teams should be small in order to promote
effectiveness and efficiency.
B. The teams should have properly trained members whopossess the
required skills for the job or task.
C. The teams should be given enough time to work on problems to be
D. The teams should be authorized to study the problem in depth and
implementremedial action to resolve them.
E. Each team should have a "champion" whose main task is to help the
team overcome various problems as they crop up.
Relationship TQM with Organizationalbehavior
TQM and OB are more related because both have need of
employee commitment, involvementand teamwork .TQM involves a
whole new philosophy of managingbehaviorin organizations and
includes elements like givingworkers the responsibilityfor finding ways to
do their jobs more efficiently and ways to improve quality “Companies can
no longer do business with blinders on. Issues such as employee stress and
the rising cost of health care, ethical awareness of doing business globally,
global warming, and the environmentaffect each and every one of us. If
companies continue to ignore each of these issues, there won’t be world left
to business nor customers left to do business with. Only through global
corporate cooperation can a difference be made.”
At its core the basicfoundation of Total Quality Management
is that “the organizations culture is defined by the “continuous
improvementof organizationalprocesses, techniques, and training.”This
requires adherence to the four principals of total quality management
1. Getting it rightthe first time.
2. Listen to and learn from customers and employees.
3. Make continuous improvementan everyday matter.
4. Build teamwork, trust, and mutual respect.
The most importantpartof Total Quality Management
(TQM) is pursuing continuous improvementin all aspects of organization,
whereas a Organization behavior (OB)denotes learningprinciples that
eventually lead to organization learning and growth. Because these
principles seek similargoals.