INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

Technologies to be used

Unit Highlights
 Organizational Behavior: Definition, Objectives Benefits and Variables of OB.
 Key Elements and Contributing discipline to OB Fiend.
 The Challenges and opportunities of OB.
 Developing a model of OB.
 Role of Information Technology in Organization
 Managing Organizational Diversity
 Ethics and Ethical Behavior in Organizations.
 Historical Development of Organizational Behavior

Lesson –1: Introduction to Organizational Behavior

Lesson objectives
Upon completion of this lesson, you will be able to:
 Define organizational behavior.
 Explain the objectives and Benefits of OB.
 Identify the elements of organizational behavior.
 Know the key functions of organizational behavior.
Introduction
Organizational behavior is the study and application of knowledge about how people-as
individuals and as groups- act within organizations. It strives to identify ways in which people can
act more effectively. In an organization, people join their works under particular structures so that
they achieve the organizational objectives in a planned way. But it may not be possible without
favorable pattern of behavior of other employees of the organization. Organizational behavior
gives such knowledge to the learners so that they can learn different dimensions of behaviors of
all employees in the organization.
OB can be defined as--
"The Study of human behavior in organizational settings, the interface between human behavior
and the organizational context and the organization itself." --Griffin and Moorhead.
J.W. Newstrom and Keith Davis define OB as follows “Organizational behavior is the study and
application of knowledge about human behavior in organizations as it relates to other system
elements, such as people, structure, technology and external social system.”
Larry L. Cummings says, “OB is a way of thinking, a way of convincing problems and
articulating research and action solutions.”
According to Fred Luthans “Organizational Behavior is directly concerned with the
understanding, prediction and control of human behavior in organizations.”
“Organizational behavior is a field of study that investigates the impact of individuals, groups and
structure have on behavior within organizations for the purpose of applying such knowledge
toward improving an organization's effectiveness.” --Stephen P. Robbins.
The above definition has three parts
1. The Individual Behavior
2. The Organization and
3. The interface between these two
Each individual brings to an organization a unique set of beliefs, values, attitudes and other
personal characteristics and these characteristics of all individuals must interact with each other in
order to create organizational settings.
Objectives of Organizational Behavior
Organizational behavior provides a useful set of tools at many levels of analysis.
1. It helps managers look at the behavior of individualswithin an organization.
2. It also aids their understanding of complexities involved in interpersonal relation.
3. It valuable for examining the dynamics of relationships within small groups both formal
teams and informal groups.
4. It interested in intergroup relationship.
5. Finally, organizations can also be viewed, and managed, as whole systems that have inter-
organizational relationship.
Benefits of Organizational Behavior.
There are four basic benefits of Organizational Behavior:
1.Organizational Behavior helps to identify and describe systematically how people of the
organization behave under a variety of conditions in the Organization.
2.Organizational Behavior helps to determine and understand the reason why people in the
organization behave like this.
3.Organizational Behavior helps to predict the future behavior of the employees in the
organization.
4.Organizational Behavior helps to control the behavior of the people of the Organization for the
purpose of their effective and efficient performance towards the accomplishment of goals.
Variables of Organizational Behavior
A number of Variables affect the activities and behavior of organizations today. These elements
are categorized into four classes—people, structure, technology and the environment. These
variables are briefly discussed below:
1. People: People of the Organization make up an internal social system in the organization.
These people consist of individuals and groups. These groups may be large or small, formal or
informal, official or unofficial. As individuals and groups, people have different values and
beliefs which have impact on their action and behavior in the organization.
2. Structure: Structure is the formal or official relationships between superiors and subordinates
and between departments and sections and between the works and activities. Different people in
an organization are given different roles and they have certain relationships with others. It leads to
division of labor. So that people can perform their duties or work to accomplish the organizational
objectives.

People
 Individuals
 Group

Environment
 Government
rules and
Law Structure
 Competition  Works Organizational
 Societal  Relationship
pressures Behavior

Technology
 Machinery and Tools
 Equipment
 Computer hardware and
software
 Various APPS

Figure: Key Variables of Organizational Behavior

3. Technology: Technology provides means and resources with which people perform their tasks
effectively and efficiently.The nature of technology depends very much on the nature of
organization and influences the work or working conditions. Thus, technology utilizes
efficiency and skills of people and brings effectiveness.
4. Environment: Every organization must be operated within both internal external
environments. The attitude, behavioral patterns and action of the people of the organization
are greatly influenced by these environments.Numerous changes in the environment create demands on organizations. Customers
expect organizations to be socially responsible; new products and competition for customers come from many sources around the
globe; the direct impact of trade unions diminishes, the dramatic pace of change in society quickness. All these factors—but specially
the rapid globalization of the market place, whose impact on OB influence one another in a complex system creates a dynamic context
for a group of people.
Activity
What are the key forces of organizational behavior in a manufacturing organization of Bangladesh?
Short Questions
1. Define Organizational Behavior.
2. Describe the objectives of organizational behavior.
3. Explain the benefits of organizational behavior.
4. State the Variables of organizational behavior.
Broad Questions
1. What do you mean by Organizational Behavior? Describe the objectives and benefits of organizational behavior.
2. Discuss in detail the key variables of Organizational Behavior.
Lesson –2: Key Elements and Contributing discipline to OB Field
Lesson Objectives
On completion of this lesson, you will be able to know the:
 Describe the organizational behavior system.
 Key Elements of OB.
 Identify the challenges management and organizational behavior.
 The contributing discipline to OB Field.
 Explain the opportunities of future organizational behavior.
An Organizational Behavior System
Organizations achieve their goals by creating, communicating and operating an organizational behavior system, as showing figure.
These systems exist in every organization, but sometimes in varying forms. They have a greater chance of being successful, though, if
they have been consciously created and regularly examined and updated to meet new and emerging conditions.
The primary purposes of organizational behavior systems are to identify and then help manipulate the major human and organizational
variables that affect the results organizations are trying to achieve. For some of these variables, managers can exert some control over
them. The outcomes, or and results, are typically measured in various forms of three basic criteria: performance (e.g. quantity and
quality of products and services; level of customer services), employee satisfcation(often exhibited through lower absenteeism,
tardiness, or turnover), or Personal growth and development (the acquisition of lifelong knowledge and skills leading to continued
employability).

Management
Philosophy • Values Vision • Mission • Goals

Formal Organizational Social

Organization Culture Environment

Informal
Organization
Leadership • Communication • Group dynamics

Quality of work life (QWL)

Motivation

Outcomes:
 Performance
 Employee satisfaction
 Personal growth and development
Sourse: https://www.slideshare.net/slideshow/models-of-organizational-behavior/1966321
Key Elements of Organizational Behavior
1. The Philosophy: The philosophy of organizational behavior held by a manager stem from two
sources-fact premises. (1) Fact premises represent our descriptive view of how the world behaves.
They are drawn from both behavioral science research and our personal experience. (2) Value
premises, on the other hand, represent our view of the desirability of certain goals and activities.
2. Vision, Mission and Goal: Manager also has primary responsibility for instilling three other
elements into the organizational behavior system-vision, mission, and goals. Vision represents a
challenging portrait of what the organization and its members can be-a possible (and desirable)
future. An organization also typically creates a mission statement, which identifies the business it
is in, the market niches it tries to serve the types of customers it is likely to have, and the reasons
for its existance. Goals are relatively concrete formulation of achievements the organizational is
aiming for within set periods of time, such as one to five years.
3. Organizational Culture: Philosophy,values, visions, mission, and goals help create a
recognizable organizational culture. This culture is also a reflection of the formal organization with
its formal policies, structures, and procedures and the existing social and cultural (global)
environment.
4. Leadership, Communication and Group Dynamics: Managers are then expected to use a
leadership style, communication skill and their knowledge of interpersonal and group dynamics to
create an appropriate quality of work life for their employees. When this task is done properly,
employees will become motivated toward the achievement of organizational goals.
5. Outcome: The result of an effective organizational behavior system is motivation which, when
combined with employee skills and abilities, results in the achievement of performance goals as
well as individual satisfaction.
Challenges faced by Management and Organizational Behavior
A number of critical changes and challenges faced by managers today. These are:
1 Globalization: Certainly the emergence of a ‘borderless’ world has had a tremendous impact on the way
organisations behave. They are no longer insulated from foreign competition, and this has forced
organisations to examine cost efficiencies, structure, job design, human capital, and many other sources of
effectiveness and competitiveness.
2 Technology: We have seen tremendous technological advances in the last decade, and this has had a
significant impact on the way organisations behave. The Internet has enabled small, start-up companies to
become global organisations (even from one’s home). We have access to much more information, and we
can access it much more quickly. This has a number of effects on organizational behaviour: it has given
organisations access to larger, more diverse markets; it enables organisations to market their products and
services electronically, it has helped many organisations reduce costs.
3 Mergers and acquisitions:The last numbers of years have been a time of merging and acquiring for
many organizations, seeking to increase market share and profitability. But the complexity of these
integrations has had a tremendous impact on employees in newly merged organization; they often have
great difficulty adjusting to potentially conflicted cultures. This has contributed to many failed mergers and
acquisitions.
4 Workplace diversity: The workforce in today’s new economy is much more diverse, as a result of
changing demographics. This necessitates a better understanding of needs and values in the workforce, and
careful planning in an effort to provide a work environment that is welcoming and comfortable for all
employees.
5 Organizational structures:In response to increased competition, many organisations have focussed on
cost efficiencies and increased effectiveness. Management has argued that the members must ‘get closer to
the customer’ and focus almost exclusively on ‘value-added’ services in an effort to distinguish themselves
from the competition.
6 Work-life balances:There was a time when managers (who were mostly men) would not consider
turning down a promotion. But today, many members in organizations do just that, because they place a
much greater priority on personal time – time for themselves, travel time, time for their families.
Organisations have responded in a number of ways: allowing flexible work hours, providing day care in an
effort to allow parents to be close to their children, encouraging at home offices, and providing for extended
vacations and paid sabbaticals. Employee loyalty is critical in establishing a productive and dedicated
workforce, and if these needs are ignored, organisations risk losing these employees.
7 The rate of change:Some managers have identified the pace of change in today’s environment as their
number one management challenge. Historically, change appeared to be the exception, while stability in
organisations was the norm. We could plan change and progress using historical performance as our guide.
That is no longer possible, and in fact potentially dangerous. Our ability to rely on a sense of permanence
has been eroded, and this necessitates flexibility, an astute understanding of our markets and our customers,
and a tolerance for ambiguity moving forward. Globalisation and technological advances have provided
organisations with a guarantee that change is ubiquitous and cannot be ignored.
8 Increased competition:Competition has intensified for many organisations over the last decade,
primarily as a result of the issues discussed above. Globalisation and technology have facilitated entry into
some industries by some organisations, and organisations must compete within a much larger arena. This
has resulted in some radical changes, some of which include strategic, structural, and operational.
9 Increased ethical and social responsibility:Consumers have access to more information now than ever
before, and some would argue that they are more knowledgeable in general about the values and behaviour
of the organisations in which they invest. Increased competition has provided consumers with more choices
in terms of purchasing products or services. As such, many organisations face an increased need to behave
ethically and demonstrate appropriate social behaviour. Unfortunately, not all organisations feel compelled
to behave in ethical or moral ways. But they risk being exposed for their negligence, by a whistleblower
from within the organisation who wishes to expose the wrongdoing.
Disciplines Contributing to Organisational Behaviour (OB)
OrganisationalBehaviour (OB) is an interdisciplinary field that studies human behaviour within
organisations. It seeks to understand, predict, and manage human behaviour in the workplace to improve
organisational effectiveness. Various disciplines contribute to the OB field to provide insights into how
individuals, groups, and organisations function and interact.
Sourse: Stephen P. Robbins, 17 th edition, Pearson
1. Psychology
Psychology is the scientific study of human behaviour and mental processes. In OB, psychology helps
analyse individual behaviour within organisations, including motivation, perception, decision-making, and
stress management. Organisationalbehaviour uses psychological principles to design effective training
programs, assess employee satisfaction, and develop strategies for enhancing employee well-being.
2. Social Psychology
Social psychology focuses on how individuals’ thoughts, feelings, and behaviours are influenced by the
presence and actions of others. It explores topics such as group dynamics, social influence, and leadership.
In organizational behaviour, social psychology sheds light on issues, like team dynamics, communication,
conflict resolution, and leadership effectiveness. It helps organisations create harmonious work
environments.
3. Sociology
Sociology examines the structure and functioning of societies and social groups. In OB, sociology is
concerned with the organisational structure, culture, and the impact of social norms and values on
behaviour. Sociological insights help organisations understand the effects of culture on employee
behaviour, diversity and inclusion, and the role of institutions and systems in shaping organisational
practices.
4. Anthropology
Anthropology studies human societies, cultures, and behaviours across time and space. In OB, anthropology
explores the cultural aspects of organisations, including norms, rituals, and symbols. Anthropological
perspectives assist organisations in managing cultural diversity, developing cross-cultural communication
strategies, and adapting to global markets.
5. Political Science
Political Science is the study of government, politics, and the exercise of power in society. Political science
is relevant in the context of organisationalbehaviour (OB) because it helps us understand the distribution
and dynamics of power within organisations, the influence of individuals and groups in decision-making,
and the political strategies employed to shape organisational policies and actions. By applying political
science concepts, OB professionals can navigate and manage power relations, conflicts, and the broader
political context that affects organisationalbehaviour and effectiveness.
(Source: https://www.geeksforgeeks.org/disciplines-contributing-to-organisational-behaviour-ob/)
Opportunities of Organizational Behavior
Main opportunities of organizational behavior are;
1. Improving Peoples’ Skills.
2. Improving Quality and Productivity.
3. Total Quality Management (TQM).
4. Managing Workforce Diversity.
5. Responding to Globalization.
6. Empowering People.
7. Coping with Temporariness.
8. Stimulating Innovation and Change.
9. Emergence of E-Organisation& E-Commerce.
10. Improving Ethical Behavior.
11. Improving Customer Service.
12. Helping Employees Balance Work-Life Conflicts.
13. Flattening World.
 1. Improving People’s Skills: Technological changes, structural changes, environmental changes are
accelerated at a faster rate in the business field. Unless employees and executives are equipped to
possess the required skills to adapt to those changes, the targeted goals cannot be achieved in time.
These two different categories of skills – managerial skills and technical skills. Some of
the managerial skills include listening skills, motivating skills, planning and organizing
skills, leading skills, problem-solving skills, decision-making skills.These skills can be
enhanced by organizing a series of training and development programs, career development
programs, induction, and socialization.
2. Improving Quality and Productivity: Quality is the extent to which the customers or users
believe the product or service surpasses their needs and expectations. For example, a customer
who purchases an automobile has a certain expectation, one of which is that the automobile engine
will start when it is turned on. If the engine fails to start, the customer’s expectations will not have
been met and the customer will perceive the quality of the car as poor. The key dimensions of
quality as follows.

 Performance: Primary rating characteristics of a product such as signal coverage, audio quality,
display quality, etc.
 Features: Secondary characteristics, added features, such as calculators, and alarm clock features
in handphone
 Conformance: meeting specifications or industry standards, the workmanship of the degree to
which a product’s design or operating characteristics match pre-established standards
 Reliability: The probability of a product’s falling within a specified period
 Durability: It is a measure of a product’s life having both economic and technical dimension
 Services: Resolution of problem and complaints, ease of repair
 Response: Human to human interfaces, such as the courtesy of the dealer « Aesthetics: Sensory
characteristics such exterior finish
 Reputations: Past performance and other intangibles, such as being ranked first.

More and more managers are confronting to meet the challenges to fulfill the specific requirements of
customers. To improve quality and productivity, they are implementing programs like total quality
management and reengineering programs that require extensive employee involvement.
3. Total Quality Management (TQM): Total Quality Management (TQM) is a philosophy
of management that is driven by the constant attainment of customer satisfaction through
the continuous improvement of all organizational processes. The components of TQM
are;
(a) An intense focus on the customer,
(b) Concern for continual improvement,
(c) Improvement in the quality of everything the organization does,
(d) Accurate measurement and,
(e) Empowerment of employees.
4. Managing Workforce Diversity: This refers to employing different categories of employees who are
heterogeneous in terms of gender, race, ethnicity, relation, community, physically disadvantaged, elderly
people, etc. The primary reason to employ the heterogeneous category of employees is to tap the talents and
potentialities, harnessing the innovativeness, obtaining synergetic effect among the divorce workforce.

In general, employees wanted to retain their individual and cultural identity, values and lifestyles even
though they are working in the same organization with common rules and regulations. The major challenge
for organizations is to become more accommodating to diverse groups of people by addressing their
different lifestyles, family needs, and work styles.

5.Responding to Globalization: Today’s business is mostly market-driven; wherever the demands exist
irrespective of distance, locations, climatic conditions, the business operations are expanded to gain their
market share and to remain in the top rank, etc. Business operations are no longer restricted to a particular
locality or region. The company’s products or services are spreading across nations using mass
communication, the internet, faster transportation, etc. More than 95% of Nokia (Now Microsoft)
handphones are being sold outside of their home country Finland.
Japanese cars are being sold in different parts of the globe. Sri Lankan tea is exported to many cities around
the globe.

Garment products of Bangladesh are exporting in the USA and EU countries. Executives of Multinational
corporations are very mobile and move from one subsidiary to another more frequently.

6. Empowering People: The main issue is delegating more power and responsibility to the lower
level cadre of employees and assigning more freedom to make choices about their schedules,
operations, procedures and the method of solving their work-related problems. Encouraging the
employees to participate in the work-related decision will sizable enhance their commitment to
work. Empowerment is defined as putting employees in charge of what they do by eliciting some
sort of ownership in them.

7. Coping with Temporariness: In recent times, the product life cycles are slimming, the methods
of operations are improving, and fashions are changing very fast. In those days, the managers
needed to introduce major change programs once or twice a decade. Today, change is an ongoing
activity for most managers.
8. Stimulating Innovation and Change: Today’s successful organizations must foster innovation
and be proficient in the art of change; otherwise, they will become candidates for extinction in due
course of time and vanished from their field of business. Victory will go to those organizations that
maintain flexibility, continually improve their quality, and beat the competition to the market place
with a constant stream of innovative products and services.
9. The emergence of E-Organisation& E-Commerce: It refers to the business operations involving
the electronic mode of transactions. It encompasses presenting products on websites and filling the
order. The vast majority of articles and media attention given to using the Internet in business are
directed at online shopping. In this process, the marketing and selling of goods and services are
being carried out over the Internet.

In e-commerce, the following activities are being taken place quite often – the tremendous numbers of
people who are shopping on the Internet, business houses are setting up websites where they can sell goods,
conducting the following transactions such as getting paid and fulfilling orders. It is a dramatic change in
the way a company relates to its customers. At present e-commerce is exploding. Globally, e-commerce
spending was increasing at a tremendous rate.

10. Improving Ethical Behavior: The complexity in business operations is forcing the workforce to
face ethical dilemmas, where they are required to define right and wrong conduct to complete their
assigned activities. For example, Should the employees of a chemical company blow the whistle if
they uncover the discharging its untreated effluents into the river are polluting its water resources?

 Do managers give an inflated performance evaluation to an employee they like, knowing that such
an evaluation could save that employee’s job?

The ground rules governing the constituents of good ethical behavior has not been clearly defined,
Differentiating right things from wrong behavior has become more blurred .
 11. Improving Customer Service: OB can contribute to improving organizational performance by
showing drat how employees’ attitudes and behavior are associated with customer satisfaction. In
that case, service should be the first production-oriented by using technological opportunities like a
computer, the internet, etc. To improve customer service we need to provide sales service and also
the after-sales service.
12. Helping Employees Balance Work-Life Conflicts: The typical employee in the 1960s or 1970s
showed up at the workplace Monday through Friday and did his or her job 8 or 9-hour chunk of
time. The workplace and hours were specified. That’s no longer true for a large segment of today’s
workforce.

Employees are increasingly complaining that the line between work and non-work time has become
blurred, creating personal conflict and stress. Many forces have contributed to blurring the lines between
employees’ work life and personal life.

First, the creation of global organizations means their world never sleeps. At any time and on any day, for
instance, thousands of General Electric employees are working somewhere.

Second, communication technology allows employees to do their work at home, in their cars, or on the
beach in Cox’s Bazar. This lets many people in technical and professional jobs do their work anytime and
from any place.

Third, organizations are asking employees to put in longer hours.

Finally, fewer families have only a single breadwinner. Today’s married employee is typically part of a
dual-career couple. This makes it increasingly difficult for married employees to find the time to fulfill
commitments to home, spouse, children, parents, and friends.
Today’s married employee is typically part of a dual-career couple. This makes it increasingly difficult for
married employees to find the time to fulfill commitments to home, spouse, children, parents, and friends.
Employees are increasingly recognizing that work is squeezing out personal lives and they’re not happy
about it.
For example, recent studies suggest that employees want jobs that give them flexibility in their work
schedules so they can better manage work/life conflicts. Also, the next generation of employees is likely to
show similar concerns. A majority of college and university students say that attaining a balance between
personal life and work is a primary career goal. They want a life as well as a job.
13. Flattening World: Thomas Friedman’s book The World Is Flat: A Brief History of the
Twenty-First Century makes the point that the Internet has “flattened” the world and created an
environment in which there is a more level playing field in terms of access to information. This
access to information has led to an increase in innovation, as knowledge can be shared instantly
across time zones and cultures. It has also created intense competition, as the speed of business is
growing faster and faster all the time.
(Source:https://www.linkedin.com/pulse/challenges-opportunities-organizational-behavior-mansi-mishra)
Discussion Question:
1. Describe the organizational behavior system.
2. Explain the key elements of OB.
3. Identify the challenges management and organizational behavior.
4. Briefly state the contributing discipline to OB Field.
5. Explain the opportunities of future organizational behavior.
Lesson –3: Models of Organizational Behavior
Lesson Objectives
On completion of this lesson, you will be able to know the:
 Autocratic model of Organizational Behavior
 Custodial model of Organizational Behavior
 Supportive model of Organizational Behavior
 Collegial model of Organizational Behavior
Models of Organizational Behavior

Autocratic Custodial Supportive Collegial

Basis of model Power Economic Leadership Partnership
resources
Managerial orientation Authority Money Support Teamwork
Employee orientation Obedience Security and Job Responsible
benefits Performance behavior
Employee psychological Dependence on Dependence Participation Self-discipline
result boss on boss
Employee needs met Subsistence Security Status and Self-actualization
recognition
Performance result Minimum Passive Awakened Moderate
cooperation drives enthusiasm

1. The Autocratic Model: The autocratic model has its roots in history, and certainly, it became the
prevailing model of the industrial revolution. Autocratic model depends on power. Those who are in
command must have the power or demand “you do this-or else,” meaning that an employee who does
not follow orders will be penalized. In an autocratic environment the managerial orientation is formal,
official authority. Right of command delegates this authority over the people to whom it applies.
Management believes that it knows what is best and that the employee’s obligation is to follow order.
2. The Custodial Model: As managers began to study their employees, they soon recognized that
although autocratically managed employees did not talk back to their boss, they certainly “though
back.” There were many things they wanted to say, and sometimes they did say them when they quit or
lost their tempers. Employees were filled with insecurity, frustrations, and aggressions toward their
boss. Since they could not vent these feelings directly, sometimes they went home and vented them on
their families and neighbors: so the entire community might suffer from this relationship. To satisfy the
security needs of employees, a number of companies began welfare programs in the 1890s and 1900s.
In their worst form these welfare programs later became known as paternalism. In the 1930s welfare
programs evolved into a variety of fringe benefits to provide employee security. Employers-and unions
and government-began caring for the security needs of workers. They were applying a custodial model
of organizational behavior. A successful custodial model depends on economic resources. The
resulting managerial orientation is toward money to pay wages and benefits. This model leads to
employee dependence on the organization.
3. The Supportive Model: The supportive model of organizational behavior had its origins in the
“principle of supportive relationship”. The supportive model depends on Leadership instead of power
and money. Through leadership, management provides a climate to help employees grow and
accomplish in the interests of the organization the things of which they are capable.
4. The Collegial Model: A useful extension of the supportive model is the collegial Model. The term
collegial relates to a body of people having a common purpose. The collegial model, which embodies a
team concept, first achieved widespread applications in research laboratories and similar work
environments. The collegial model depends on management’s building a feeling of partnership with
employees. The result is that employees feel needed and useful. They feel managers are contributing
also, so it is easy to accept and respect their roles in organization. Managers are seen as joint
contributors rather than as bosses.

Conclusions about the models: Several conclusions can be made about the models of organizational
behavior. They are, in practice, subject to evolutionary change; they are a function of prevailing employee
needs; there is a trend toward the newer models; and any of the models can be successfully applied in some
situations. In additions, the models can be modified and extended in a variety of way.
Coming Attraction: Developing OB Model
By studying the model, you will have a good picture of how the topics in this text can inform your approach
to management issues and opportunities. A model is an abstraction of reality, a simplified representation of
some realworld phenomenon. Exhibit 1-5 presents the skeleton of our OB model. It proposes three types of
variables (inputs, processes, and outcomes) at three levels of analysis (individual, group, and
organizational).
Sourse: Stephen P. Robbins, 17 th edition, Pearson
The model illustrates that inputs lead to processes, which lead to outcomes; we will discuss
interrelationships at each level of analysis. Notice that the model also shows that outcomes can influence
inputs in the future, which highlights the broad-reaching effect OB initiatives can have on an organization’s
future.
Inputs are the variables like personality, group structure, and organizational culture that lead to processes.
These variables set the stage for what will occur in an organization later. Many are determined in advance
of the employment relationship. For example, individual diversity characteristics, personality, and values
are shaped by a combination of an individual’s genetic inheritance and childhood environment. Group
structure, roles, and team responsibilities are typically assigned immediately before or after a group is
formed.
Processes If inputs are like the nouns in OB, processes are like verbs. Processes are actions that individuals,
groups, and organizations engage in as a result of inputs and that lead to certain outcomes. At the individual
level, processes include emotions and moods, motivation, perception, and decision making. At the group
level, they include communication, leadership, power and politics, and conflict and negotiation. Finally, at
the organizational level, processes include human resource management and change practices.
Outcomes are the key variables that you want to explain or predict, and that are affected by some other
variables. What are the primary outcomes in OB? Scholars have emphasized individual-level outcomes,
such as attitudes and stress, task performance, citizenship behavior, and withdrawal behavior.
Attitudes and Stress Employee attitudes are the evaluations employees make, ranging from positive to
negative, about objects, people, or events. For example, the statement “I really think my job is great” is a
positive job attitude, and “My job is boring and tedious” is a negative job attitude. Stress is an unpleasant
psychological process that occurs in response to environmental pressures. Some people might think
influencing employee attitudes and stress is purely soft stuff and not the business of serious managers, but
as we will show, attitudes often have behavioral consequences that directly relate to organizational effect
Task Performance The combination of effectiveness and efficiency at doing your core job tasks is a
reflection of your level of task performance. If we think about the job of a factory worker, task performance
could be measured by the number and quality of products produced in an hour. The task performance of a
teacher would be the level of education that students obtain. The task performance of consultants might be
the timeliness and quality of the presentations they offer to the client.
Organizational Citizenship Behavior (OCB) The discretionary behavior that is not part of an employee’s
formal job requirements, and that contributes to the psychological and social environment of the workplace,
is called organizational citizenship behavior (OCB), or simply citizenship behavior. Successful
organizations have employees who will do more than their usual job duties—who will provide performance
beyond expectations.
Withdrawal Behavior We’ve already mentioned behavior that goes above and beyond task requirements,
but what about behavior that in some way is below task requirements? Withdrawal behavior is the set of
actions that employees take to separate themselves from the organization. There are many forms of
withdrawal, ranging from showing up late or failing to attend meetings to absenteeism and turnover.
Activity
Which Model is applicable in your organization? Give reasons for your favor.
Discussion Questions:
1. What are the various models of Organizational Behavior?
2. Briefly discuss the Autocratic Models of Organizational Behavior.
3. State in brief the Supportive Model of Organizational Behavior.
4. Briefly explain the Collegial Model of Organizational Behavior.
Lesson-4:Information Technology of Organization
Lesson Objectives
On completion of this lesson, you will be able to know the:
 Identify the information technologies of organization
 Role of information technology of organization.
Information Technology of Organization
Modern managers are studying and gradually adopting several electronic devices that improve
communication. These electronic media include personal computers (PCs), minicomputers, mainframe
computers, electronic mail (e-mail), voice mail, fax, and cellular telephones for making telephone calls
from moving conditions.
Computer Networking
As a matter of fact information technology has changed how people communicate. This has altered,
accordingly, the way many organisations are managed. The use of personal computers is noteworthy.
Personal computers broke the firm grip of the central computer system on the flow of information in
organisations. One consequence of such decentralisation of information was the end of the related firm grip
of middle management on corporate communications.
Greater still has been the technological communications. Personal computers put greater power on
more people's desks. But those people frequently worked in isolation from other personal computer users.
Now, however, a whole new array of products - software capabilities known generally as groupware - has
begun to challenge that practice and has begun to change organisational communication patterns. As Linda
Applegate says: "Instead of managing data, computers are being used, in effect, to manage networks of
relationships between people."
Electronic mail (or E-mail) is one kind of new technological capability. E-mail users send
messages between each other's computers. But e-mail is a relatively private communication channel
compared to groupware networks, which serve as combinations of bulletin boards and conferences that
many managers and employees can tap into at an organisation.
Telecommunication
Telecommunication with or without the use of a computer has been used fruitfully in recent years in various
ways by most large-scale companies throughout the world.
The following are some of the examples of its use:
 The computerised railway/airline reservation system facilitates making quick travel arrangements.
 Many banks provide bank-by-phone services available even to individuals.
 Large banks supply hardware and software to their customers so that they can easily transfer funds
to their suppliers.
 Facsimile (fax) service transmits information within minutes to any destination on earth.
 Telecommunication provides an important link for just-in-time inventory systems.
 Large enterprises now have detailed personnel information - including performance appraisals and
career development plans - in a data bank.
These are some of the many applications of telecommunication.
What is important is to ensure its use effectively and for that matter technical experts must make every
effort to identify real needs of users (managers, customers etc.) and to design systems that are useful. We
may now turn to a specific application of the new technology: teleconferencing.
Teleconferencing
It is very popular in open universities for distance education. Students from different locations can confer
with their teacher who is based in a distant place. It is interactive and can be either audio or video or both.
In general, most people think of a teleconference as a group of people interacting with each other by means
of audio and video media with moving or still pictures.
Full-motion video is sometimes used to hold meetings among executives stationed at different
locations. Not only can they hear each other, but they can also see each other's expressions or discuss some
visual display. This is, of course, rather expensive but effective.
Some of the potential advantages of teleconferencing include savings in travel expenses and travel
time. Also, conferences can be held whenever necessary, since there is no need to make travel plans long in
advance. Because meetings can be held more frequently, communication is improved between, for example,
headquarters and geographically scattered divisions/branches.
E-mail
E-mail via PCs and PDAs has become commonplace in today’s workplace; it is used to communicate with
everyone, inside and outside the organization around the world. The same is true of word processing and
spreadsheets; this is simply the way business is conducted. In addition, at first electronic data interchange
(EDI) and now B2B allows customers, suppliers and manufacturers to communicate directly on a computer-
to-computer systems basis. In today’s organizations, in western world, written sales and order forms have
been eliminated, information is being entered directly to computers, and these machines are being
programmed to interpret information and make decision.
E-Business
Herb Kelleher, the well-known founder and head of highly successful southwest Airlines, USA was
recently asked what would be the biggest business story of the 21st century. He replied:
Even though I’m still into no.2 pencils and legal notepads. I recognize the impact the Internet and e-
commerce are having on business. Business has globally just brushed the tip of the iceberg when it comes
to tapping the potential the Internet has to change the face of American business. About a third of the
world’s people now have the Internet access; within five years, that number is expected to be more than 90
percent. That’s large base of customer’s residing only a few keyboard strokes away.
Intranets
Organizations today are using the wonders of the intranet, but without some of the problems. As one critical
analysis pointed out, “Users are driven to distraction by the delays, the muddle and the brainless rubbish.
Breakdowns of bits of the Net are hardly new, but when they happen these days a lot of people notice –as
when America online crashed leaving 6 million subscribers to twiddle their thumbs.”
To avoid the increasingly bothersome public access problems while taking advantage of what the Internet
and Web technology can offer, almost all organizations are using an Internet. These private Nets or
Internets, use the infrastructure and standards of the Internet and World Wide Web, but are cordoned off
from the public Internet through software programs known as “fire walls.” With an Intranet, the
organization’s employees can venture out into the Internet and all of its wealth of knowledge, and
unauthorized users can’t come into their Intranet.
Activity
Is there any scope of e-commerce/ Business in Bangladesh? Mention some advantages and disadvantages of e-
commerce / business.
Role of Information Technologies (IT) in Modern Organization
IT (Information Technology) is the process of using any computers, storage, networking, and their physical
evidence, infrastructure, and processes. These processes help to create, process, store, secure, and exchange
all forms of electronic data.
Information technology plays an important role in the organization or company. It is all about managing the
organization. Managing an organization is not an easy task. It deals with operations and resources within an
organization. So, IT is the process of managing the organization with the help of technology. It is all about
technologies and maintaining resources that are associated with employees of the organization.
It is the process of overseeing all matters regarding information technology operations. Besides, it helps in
utilizing all the resources properly and in a way that helps to provide great value for the company.
Therefore, effective systems of IT are crucial for all organizations. It makes the organization get optimum
benefit from all the sources and helps in gaining maximum profit. On the other hand, it helps organizations
in utilizing their staff in a proper way. Besides, it improves the business process and communication in the
best way.
These are the most visible IT roles in a organization they support answering, troubleshooting, and resolving
technical issues to keep customers. They are also responsible for handling complex tasks and ensuring
customer satisfaction. Why is an organization required to hire a help desk analyst? The reasons may be –
onflict resolution
 Problem-solving
 Wide range of technical knowledge
 Patience and active learning
Network administrator
They focus on network building within an organization and their work is slightly different from others.
Why is an organization required to hire a network administrator ?the reasons may be –
 Experienced in IT systems and networking
 Analytical skills
 Network security
 Attention to details
In today's fast-paced and interconnected world, information technology (IT) plays a pivotal role in the
success and growth of modern businesses. The integration of IT into various aspects of business operations
has transformed the way companies operate, communicate, and compete. In this blog, we'll explore the key
roles that information technology plays in modern business and how it influences everything from
communication to innovation.
1. Improved Efficiency and Productivity
One of the most significant contributions of IT to modern business is the enhancement of efficiency and
productivity. Automation of routine tasks, data processing, and streamlined workflows through software
and applications not only reduces manual errors but also allows employees to focus on more strategic and
creative tasks. This leads to increased productivity and a competitive edge in the market.
2. Enhanced Communication
Information technology has revolutionized communication within and outside organizations. Email, instant
messaging, video conferencing, and collaboration tools have made it easier for employees to communicate
and collaborate irrespective of their geographical locations. This seamless communication fosters better
teamwork and decision-making, ultimately leading to improved business outcomes.
3. Data Management and Analysis
In the digital age, businesses generate vast amounts of data daily. IT systems enable efficient data
collection, storage, and analysis. Through data analytics tools, companies can extract valuable insights that
guide decision-making, customer segmentation, and market trends analysis. This data-driven approach
helps businesses make informed decisions and adapt to changing market conditions.
4. Enhanced Customer Engagement
Modern businesses heavily rely on IT to engage with their customers. From e-commerce websites and
mobile apps to social media platforms and personalized email marketing campaigns, IT enables companies
to reach and interact with their target audience more effectively. Customer relationship management (CRM)
software helps businesses manage customer interactions and provide personalized services, fostering loyalty
and customer satisfaction.
5. Innovation and Competitive Advantage
Information technology fuels innovation by providing tools and platforms for research, development, and
experimentation. Companies can explore emerging technologies like artificial intelligence (AI), machine
learning, and blockchain to create innovative products and services that differentiate them from
competitors. Staying ahead in the tech race can provide a significant competitive advantage.
6. Supply Chain Management
IT plays a crucial role in optimizing supply chain operations. Through the use of sophisticated software,
businesses can track inventory levels, manage logistics, and improve demand forecasting. This ensures
timely deliveries, reduces costs, and enhances overall supply chain efficiency.
7. Security and Risk Management
With the increasing reliance on digital systems, cybersecurity has become a paramount concern for modern
businesses. IT professionals work diligently to protect sensitive data and information systems from cyber
threats. Advanced security measures, such as firewalls, encryption, and intrusion detection systems, are
vital for safeguarding a company's reputation and customer trust.
8. Cost Reduction
While the initial investment in IT infrastructure and software can be substantial, it often leads to long-term
cost savings. Automation and efficient data management can reduce operational costs, while cloud
computing can eliminate the need for expensive on-premises servers and hardware.
In conclusion, information technology is the backbone of modern business operations. Its role extends far
beyond mere automation and includes communication, data management, innovation, and competitive
advantage. As technology continues to evolve, businesses that embrace IT will be better positioned to thrive
in the digital era. To remain competitive, it's crucial for companies to stay abreast of the latest technological
developments and incorporate them into their business strategies.
Discussion Questions:
Identify and explain the information technologies in organization.
Discuss the role of information technology in organization.
Lesson-5: Ethics and Ethical Behavior in Organization
Lesson Objectives
On completion of this lesson, you will be able to know the:
 Ethic and Ethical Behavior in Organization.
 Ethics in Business Organization
 Factors influencing Ethical Behavior
 Encouraging Ethical Behavior
Ethics and Ethical Behavior in Organization
Ethics involves moral issues and choices and deals with right and wrong behavior. Only recently has either
been fully integrated into the study of organizational behavior. It is now realized that not only individuals
and groups but also a number of relevant factors from the cultural, organizational, and external environment
determine ethical behavior. Cultural influences on ethical behavior come from family, friends, neighbors,
education, religion, and the media. Organizational influences come from ethical codes, role models, policies
and practices, and reward and punishment systems. The external forces having an impact on ethical
behavior include political, legal, economic, and international developments. These factors often work
interdependently in shaping the ethical behavior of individuals and groups in organizations. For example,
minimum wage jobs may lock people into an economic existence that prevents them from bettering their
lives. Is it ethical to pay people only a minimum wage? Or consider the facts that may obese workers
report that they are discriminated against in the workplace and that a research study found that applicants
judged to be relatively less attractive were at a distinct disadvantage in decisions involving suitability for
hiring and probable organizational progression. Is it ethical to treat these workers differently, given that
very limited legal protection is afforded to them and thus they have no recourse?
Ethics in Business Organization
Social responsibility requires individuals engaging in business endeavors to behave in an ethical manner.
Ethics are principles of behavior that distinguish between right and wrong. Ethical conducts conform to
what a group or society as a whole considers right behavior. People working in business frequently face
ethical questions. Business ethics is the evaluation of business activities and behavior as right or wrong.
Ethical standards in business are based on commonly accepted principles of behavior established by the
expectations of society, the firm, the industry, and an individual’s personal values.
With unethical business practices often receiving publicity, the public sometimes believes that people in
business are less ethical than others in society. But ethical problems challenge all segments of our society,
including government, churches, and higher education.
Factors influencing Ethical Behavior
To encourage ethical behavior, executives, managers, and owners of firms must understand what influences
behavior in the first place. Factors that affect individual s’ behavior in business include the business
environment, organizational factors, and an individual’s personal moral philosophy.
The business environment: Almost daily, business managers face ethical dilemmas resulting from the
pressures of the business environment. They are challenged to meet sales quotas, cut costs, increase
efficiency, or overtake competitors. Managers and employees may sometimes think the only way to survive
in the competitive world of business is by deception or cheating. In some instances, an organization may
use someone else’s successful work without the permission of the owner or originator.
The organization: The organization itself also influences behavior. Individuals often learn ethical or
unethical behaviors by interacting with others in the organization. An employee who sees a superior or co-
worker behaving unethically may follow suit.
The individual: A person’s own moral philosophy also influences his or her ethical behavior. A moral
philosophy is the set of principles that dictate acceptable behavior. These principles are learned from
family, friends, co-workers, and other social groups and through formal education. The Connections quiz
will help you evaluate your moral philosophy.
In developing a moral philosophy, individuals can follow two approaches humanistic and utilitarian. The
humanistic philosophy focuses on individual rights and values. Individuals and organizations adopting this
philosophy would honor their moral duties to customers and workers.
Individuals and organizations following the utilitarian philosophy seek the greatest good for the largest
number of people. Pharmaceutical manufacturers who make vaccine for pursuits, the deadly disease of
whooping cough, adhere to this philosophy.
Encouraging Ethical Behavior
Many organizations take positive steps to encourage ethical behavior. Some offer courses in ethics and
include ethics in training programs. (For instance, Boeing Company line mangers lead ethics training
seminars). Most courses and training seminars focus on how to analyze ethical dilemmas. The emphasis is
on understanding why individuals make the decisions they do rather than on teaching ethics or moral
principles.
A basic way for an organization to encourage ethical behavior is to establish a code of ethics. A code of
ethics is a statement specifying exactly what the organization considers ethical behavior. Many firms, as
well as trade and professional associations, have established code of ethics. For instance, the American
Medical Association has its own code of ethics that limits the amount and types of advertising used by
doctors. By enforcing codes of ethics, rewarding ethical behavior, and punishing unethical behavior, a firm
limits opportunities to behave unethically.
Employees of an organization can also encourage ethical behavior by reporting unethical practices.
Whistle-blowers are employees who inform their superiors, the media, or a government regulatory agency
about unethical behavior within their organization. Whistle-blowers often risk great professional and
personal danger by reporting the unethical behavior of others. They may be harassed by co-workers or
supervisors, passed up for promotions, fired, or even threatened with damage to their property or harm to
themselves or their families. Nonetheless, some organizations have developed plans that encourage
employees to report unethical conduct and that provide protection for whistle-blowers.
Discussion Questions:
1. Define ethic and ethical behavior in organization.
2. Explain the ethics in business organization.
3. Discuss the factors influencing ethical behavior.
4. Explain the encouraging factors of ethical behavior.
Lesson-6: Historical Development of Organizational Behavior
Lesson Objectives
On completion of this lesson, you will be able to know the:
 Early history of the development of Organizational Behavior
 Modern history of the development of Organizational Behavior
Historical Development of Organizational Behavior
The history of human relations is not new. It existed since the beginning of the time but its dealings is quite
new with the development of art and science. In the early days people worked alone or in small groups
where human relations were not problem because organizations were not so complicated as they are today.
Human relations are handled very easily because there were direct links between labor, capital and
management. They were supposed to be happy in such conditions and fulfilled their needs but it was all
force. Actual conditions were brutal and backbreaking. Life was very hard those days. People worked from
dawn to dusk under intolerable conditions of disease, filth, danger and scarcity of resources. They had to
work to survive hence there is no possibility of trying to improve the behavioral satisfaction.
Then industrial revolution broke in. In the beginning there was no improvement in human relations but later
on improvement was seen in the working conditions of the people. The industry generated a surplus capital
of goods and knowledge that eventually provided workers increased wages, shorter hours of work and more
work-satisfaction.
In this new industrial environment, a Wales factory owner Mr. Robert Owen was the first to emphasize the
human needs of the workers. He refused to employ young children in his factory. He taught his workers
cleanliness and self-restraint and improved their working conditions a lot. He was known as father of
personnel administration in early days. This could hardly be called modern organizational behavior but it
was beginning.
A book entitled ‘The Philosophy of Manufacturers’ written by Andrew Ure was published in 1835 in which
he recognized the mechanical and commercial aspects of manufacturing. He also gave recognition to the
human factor to manufacturing. He illustrated how workers are provided with hot tea; medical treatment,
ventilation and sick payments. The approaches of Owen and Ure were accepted gradually and gave birth to
paternalistic do-good approach to people. It was beginning of the history.
Early Development
During 1900s, F.W. Taylor presented the concept of Scientific Management to the world. He awakened the
interest in people at work. He is often called the father of scientific management. He gave the new
dimension in the management thought, that paved the way for the subsequent development of
organizational behavior. He was first to recognize the fact that improved work situation would certainly add
to productivity. He pointed out that just as there was a best machine for a job, so were there best ways for
people to do their jobs. The goal still was to improve the technical efficiency, but at least management was
to improve the technical efficiency, but at least management was awakened to the importance of one of its
higher to neglected resources.
The major work of Mr. F.W. Taylor was published in 1911. During the decade, the interest in human
relations at work was accelerated by World War I. ‘The National Personnel Association’ was formed in
U.S.A. and later in1923, the name of the association is changed to ‘the American Management
Association’. Its main object was to devote itself exclusively to the consideration of human factor in
commerce and industry. In 1918, a ‘silver bay conference’ was organized in New York to consider ‘Human
Relations in Industry’ and since then, conference is being regularly held. During the same period Whiting
Williams was engaged in studying workers while working with them and his experience were made public
in 1920 entitled ‘what’s on the workers mind.’
Mayo and Roethlisberger
During 1920 and 1930 Elton Mayo and F.J.Roethlesberger at Harvard University gave the academic
structure of human behavior at work. They applied keen insight, straight thinking and sociological
backgrounds to the industrial experiments at Western Electric Company Hawthorne plant. The study
developed the concept that an organization is a social system and the human element is one of the most
important elements in it. The experiments showed “worker is not simply a tool but he is a complex
personality interacting in a group situation that is hard to deal with and thoroughly misunderstood.” Mayo
pleaded that the collaboration cannot be left to chance. His colleague Roethilsberger added that ‘a human
problem to be brought to a human solution requires human data and human tools’.
The Mayo’s research, though criticized as being in adequately controlled and interpreted but it was basic
idea of social system within the work environment have stood the best of time.
Popularity
During Second World War and after, the industrialists and academicians showed a great interest in human
relation organizations. It was due to short supplies of labor during war period. By the 1950s, the study of
the subject became the fashion of the day and it became popular. Main reasons of its popularity were:
i. There was a cultural lag in understanding the human side of organization so that heavy emphasis
was laid on its study to achieve development equivalent to that in engineering, production, sales
etc.
ii. Mayo and Roethlisberger researches were followed by fresh researchers, giving managers new
understanding in building up a more effective organization.
iii. Labor unions gained strength and pressed for better working conditions for the workers. Workers
also were better-educated and expected better work environment, and more human quality
leadership in organization. There was change in social attitudes demanding more social
responsibility from organizations.
iv. Work-environment itself became more complex and needed more attention. Size of organization
increased considerably that multiplied the complexity of work. Increased specialization also
contributed to the complexity of work because now workers were unable to understand the whole
product.
The reasons discussed above show that the emphasis given to organization behavior was a result of trends,
developed over a long period of time.

Short Questions
1. Briefly state early history of organizational behavior before nineteenth century.
2. Mention the contribution of Mayo and Roethlisberger in organizational behavior.
3. What do you know about the development of organizational behavior after World War II?