Oganizational behaviour

TOPIC 1: AN OVERVIEW OF THE STUDY OF OB

WHAT IS OB
Organizational Behavior (OB) is the study of how people interact
within groups and organizations. It examines how individual behavior,
interpersonal relationships, and group dynamics affect organizational
effectiveness. OB combines insights from psychology, sociology,
anthropology, and management to understand and predict human
behavior in a workplace setting, aiming to foster improved organizational
performance, employee satisfaction, and productivity.

1. Individual Behavior: Analyzing how personal factors like personality,

motivation, perception, and learning influence actions at work.
2. Group Dynamics: Exploring how team interactions, leadership,
power, and communication shape the performance and morale of teams
within an organization.
3. Organizational Structure and Culture: Examining how the
overarching organizational environment, including its culture and
policies, affects employee behavior and adaptability.

Understanding OB helps leaders and managers apply strategies to create

positive work environments, reduce conflicts, increase motivation, and
enhance productivity across different organizational levels.

Nature and Scope of OB

Nature and Scope of Organizational Behavior (OB) defines the study’s
characteristics and its wide-reaching influence across organizational
settings.

Nature of Organizational Behavior

1. Interdisciplinary Approach: OB draws from various fields, including

psychology (for individual behavior), sociology (for group dynamics),
anthropology (for culture), and management (for organizational strategy).
This interdisciplinary nature provides a well-rounded perspective on
human behavior within organizations.
2. Focus on Behavior: OB primarily focuses on understanding and
influencing individual and group behavior. This includes analyzing how
employees think, feel, and act in a work environment.

3. Application-Oriented: OB theories are applied practically to address

real-world organizational challenges. It aims to improve efficiency,
productivity, and overall employee satisfaction.

4. Goal-Oriented: The ultimate goal of OB is to enhance the

effectiveness of both individuals and organizations. This involves
creating environments where employees can thrive, collaborate
effectively, and contribute to organizational objectives.

5. Dynamic: As workplaces and technologies evolve, OB is continuously

changing. It adapts to new organizational forms, technological
advancements, and diverse workforces to remain relevant and effective.

Scope of Organizational Behavior

1. Individual Behavior: OB studies individual characteristics, such as

attitudes, personality, perception, learning, motivation, and job
satisfaction. These factors impact performance, engagement, and
employee well-being.

2. Group Behavior and Dynamics: The study extends to groups within

an organization, including how teams form, function, and develop over
time. It covers group communication, leadership styles, decision-making
processes, and conflict resolution.

3. Organizational Structure: OB explores how an organization’s

structure—its hierarchy, job roles, and authority lines—affects behavior
and productivity. It examines how different organizational designs can
influence employee performance and collaboration.

4. Organizational Culture: OB delves into the values, beliefs, and

norms shared within an organization, which shape the work environment.
Understanding culture helps leaders manage change and build cohesion
among diverse employees.

5. Change and Development: Finally, OB includes managing

organizational change, addressing resistance to change, and fostering an
adaptable work environment. Organizational development techniques are
used to improve processes, adapt to market changes, and maintain
competitiveness.

Overall, the nature and scope of OB provide a framework to understand

and influence behavior at all levels within an organization, aiming for
optimized individual and organizational success.

Models of OB
Models of Organizational Behavior (OB) offer frameworks for
understanding how organizations function, how individuals behave within
them, and how leaders and managers can effectively influence behavior.
Here are the main models of OB, each representing a different approach
to managing and motivating employees:

1. Autocratic Model

- Description: The autocratic model is based on power and authority.

Managers exercise tight control over employees, expect obedience, and
make all key decisions without input from lower-level employees.
- Assumptions: It assumes that employees are inherently dependent on
their managers, often requiring external motivation such as threats or
discipline.
- Outcomes: This model can lead to high productivity in the short term,
but it often results in low morale, dissatisfaction, and high turnover, as
employees feel limited and undervalued.

2. Custodial Model

- Description: The custodial model focuses on providing employees

with economic security and welfare benefits, intending to create a sense
of loyalty to the organization.
- Assumptions: It assumes that if the organization provides adequate
rewards and benefits, employees will feel financially secure and be more
loyal and satisfied.
- Outcomes: While this model can improve employee satisfaction and
loyalty, it may not necessarily increase motivation or performance.
Employees may feel secure but may lack a strong drive to achieve higher
productivity.
3. Supportive Model

- Description: The supportive model centers on leadership and

employee empowerment. Managers provide support to employees,
focusing on their growth, development, and well-being.
- Assumptions: It assumes that employees are self-motivated and seek
responsibility. Managers facilitate an environment that encourages
initiative and self-direction.
- Outcomes: This model leads to higher job satisfaction, loyalty, and
motivation, as employees feel valued and empowered. It also fosters a
more positive work culture, enhancing productivity and employee
engagement.

4. Collegial Model

- Description: The collegial model emphasizes partnership and

teamwork, treating employees as colleagues who work together to
achieve common goals. It minimizes hierarchy and fosters a cooperative
environment.
- Assumptions: It assumes that employees are motivated by shared
responsibility and a sense of ownership. Managers act as coaches or team
leaders rather than authority figures.
- Outcomes: The collegial model can lead to a high level of
engagement, job satisfaction, and commitment, as employees feel like
active contributors to organizational success. It encourages creativity and
innovation, leading to higher performance.

5. System Model

- Description: The system model views the organization as an

interconnected system of various components, including people,
processes, and resources, working toward a common objective. This
model incorporates elements of motivation, leadership, teamwork, and
culture.
- Assumptions: It assumes that employees are motivated by the
opportunity to fulfill higher-level needs, such as self-actualization and
social responsibility, and that organizations function best when these
needs are met.
- Outcomes: This model fosters a sense of purpose and belonging
among employees, leading to high job satisfaction, loyalty, and
commitment. It also enhances adaptability, as the organization is more
likely to support continuous development and responsiveness to change.
Each model has its strengths and limitations, and many organizations use
a combination of these models depending on their goals, culture, and the
nature of their workforce.

Historical Roots of OB
The historical roots of Organizational Behavior (OB) trace back to
various scientific, psychological, and management theories developed
over the last century, reflecting shifts in how organizations understand
human behavior, motivation, and productivity. Here are the key historical
developments:

1. Scientific Management (Early 1900s)

- Pioneered by: Frederick W. Taylor.
- Core Idea: Taylor emphasized optimizing tasks to improve
efficiency, promoting a systematic, scientific approach to work processes.
His focus was on breaking down tasks into smaller parts, standardizing
work, and providing financial incentives.
- Impact: This approach laid the groundwork for understanding how
employee productivity can be improved through work structure and
incentives. However, it often ignored the human and social aspects of
work, focusing solely on efficiency.

2. Human Relations Movement (1930s-1950s)

- Pioneered by: Elton Mayo and colleagues.
- Core Idea: Through studies such as the Hawthorne Experiments,
Mayo demonstrated that social factors, including attention from
supervisors and a sense of belonging, could significantly impact
employee productivity.
- Impact: The movement marked a shift from viewing workers as cogs
in a machine to recognizing them as social beings with psychological
needs. This focus on interpersonal relationships led to the development of
concepts like employee motivation, morale, and group dynamics.

3. Behavioral Science Approach (1940s-1960s)

- Pioneers: Abraham Maslow, Douglas McGregor, and others.
- Core Idea: Building on psychology and sociology, the behavioral
science approach introduced motivational theories, such as Maslow’s
Hierarchy of Needs, which highlighted that people are motivated by a
range of needs from basic (like safety) to self-actualization.
- Impact: This era expanded understanding of employee motivation
and introduced the idea that managers should cater to the holistic needs of
employees, fostering growth, satisfaction, and commitment.
 4. Theory X and Theory Y (1960s)
- Pioneered by: Douglas McGregor.
- Core Idea: McGregor proposed two contrasting theories about
management views on employee motivation. Theory X assumed
employees are inherently lazy and require strict control, while Theory Y
suggested employees are self-motivated and thrive with empowerment.
- Impact: These theories highlighted the importance of managerial
assumptions in shaping work environments and emphasized that trusting
and empowering employees could lead to higher productivity and
satisfaction.

5. Contingency Approach (1960s-1970s)

- Core Idea: This approach suggested there’s no one-size-fits-all way
to manage people; instead, the best course of action depends on
situational factors such as organizational goals, workforce characteristics,
and environmental conditions.
- Impact: The contingency approach reinforced that organizational
behavior strategies should be adaptable, tailored to the specific
circumstances, and responsive to both internal and external changes.

6. Modern OB and Systems Theory (1980s-Present)

- Core Idea: The systems theory views organizations as open systems
made up of interconnected parts. It considers the organization in relation
to its environment, emphasizing adaptability, feedback loops, and
continuous improvement.
- Impact: This approach fosters an understanding of organizations as
dynamic entities that need to continuously adjust to environmental shifts
and internal needs. Modern OB also integrates technology, diversity, and
globalization factors, addressing contemporary workplace challenges.

These historical roots have significantly shaped the field of OB,

transitioning it from purely task-oriented approaches to more human-
centric models that prioritize motivation, group dynamics, and
adaptability, ultimately promoting a balanced approach to managing
people within complex organizational systems.

TOPIC 2: FOUNDATIONS OF INDIVIDUAL BEHAVIOUR

Here's a breakdown of each topic, providing foundational knowledge in

Organizational Behavior for understanding individual differences and
behaviors within organizations:

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1. What is Personality?

- Definition: Personality is the set of psychological traits and

behavioral patterns that distinguish individuals and influence their
actions, attitudes, and interactions with others.
- Importance in OB: Personality affects job performance, teamwork,
and interpersonal relationships. Traits such as openness,
conscientiousness, and emotional stability play critical roles in how
employees respond to workplace demands.

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2. Elements Constituting the Foundations of Individual Behavior in

Organizations

- Biographical Characteristics: Age, gender, marital status, and tenure

can impact job performance and satisfaction.
- Ability: Intellectual and physical abilities influence an individual’s
capacity to perform job tasks effectively.
- Personality: Unique traits that shape behavior and reactions.
- Perception: How an individual interprets and reacts to their
environment.
- Learning: How individuals acquire, retain, and use information to
adapt and improve.

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3. Individual Behavior, Personality, Perception, and Its Role in

Individual Decision-Making

- Individual Behavior: Refers to how employees act and perform in an

organizational context, influenced by personal and situational factors.
- Personality's Role: Influences how individuals approach tasks,
handle stress, and work with others. Extroverts may excel in team
settings, while introverts might thrive in independent tasks.
- Perception in Decision-Making: Perception is how people interpret
sensory information, impacting decision-making. It affects judgments, as
individuals often interpret situations based on personal biases and
experiences, which can lead to errors in judgment.

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4. Theories of Learning - How Learning Occurs, Principles of
Learning

- Classical Conditioning: Learning through association, where a

neutral stimulus becomes associated with a meaningful stimulus (e.g.,
Pavlov's dog experiment).
- Operant Conditioning: Learning through reinforcement, where
behaviors are shaped by consequences (positive or negative
reinforcement).
- Social Learning Theory: Learning through observation, where
individuals mimic behaviors they observe in others (e.g., role modeling).
- Principles of Learning: Reinforcement, feedback, practice, and
consistency are key to helping individuals retain and apply new
information and skills in the workplace.

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5. Attitudes – Formation, Factors, Changing Attitudes, Job

Satisfaction

- Definition: Attitudes are learned predispositions toward a particular

aspect of the environment. They shape how individuals respond to their
surroundings.
- Formation: Attitudes form from direct experiences, social influences,
and personal values.
- Factors Influencing Attitudes: Socialization, past experiences,
cognitive consistency, and the emotional impact of past experiences
shape attitudes.
- Changing Attitudes: Attitudes can change over time, influenced by
new information, changing personal or societal values, and workplace
conditions.
- Job Satisfaction: This is an attitude reflecting an individual’s positive
or negative evaluation of their job. It influences productivity,
absenteeism, and turnover.

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6. Values - Types

- Definition: Values are enduring beliefs that guide individuals'

behaviors, shaping how they prioritize goals and view the world.
- Types of Values:
 - Terminal Values: Desired end-states, such as happiness, success, or
family security.
- Instrumental Values: Modes of behavior that help achieve terminal
values, such as honesty, hard work, or independence.

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7. Motivation - Challenges, Importance, Theories of Motivation,

Applied Motivation Practices

- Challenges: Different employees have varying motivators, which can

change over time. Identifying what motivates each individual is
challenging for managers.
- Importance: Motivation directly influences productivity,
engagement, and retention.
- Theories of Motivation:
- Maslow’s Hierarchy of Needs: People are motivated by five levels
of needs, from physiological to self-actualization.
- Herzberg’s Two-Factor Theory: Job satisfaction and
dissatisfaction are driven by different factors; motivators (e.g.,
achievement) and hygiene factors (e.g., salary).
- Expectancy Theory: Motivation depends on individuals' expected
outcomes and rewards for their efforts.
- Applied Motivation Practices: Practices like rewards, recognition,
and job design (e.g., job rotation, enrichment) can improve motivation.

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8. Work Stress - Stress Model, Causes, Consequences, Coping

Strategies

- Definition: Work stress is the physical and emotional response to job

demands that exceed an individual’s coping resources.
- Stress Model: The demand-control model suggests that stress arises
from high job demands and low control. The person-environment fit
model emphasizes the alignment between job demands and individual
abilities.
- Causes: Heavy workloads, role ambiguity, lack of control, poor work-
life balance, and organizational change are common stressors.
- Consequences: Stress can lead to burnout, absenteeism, decreased
productivity, and health problems.
- Coping Strategies:
 - Individual Strategies: Exercise, time management, relaxation
techniques, and seeking social support.
- Organizational Strategies: Job redesign, flexible work schedules,
wellness programs, and promoting a supportive culture.

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These topics provide a comprehensive foundation for understanding how

individual traits and responses impact behavior, motivation, satisfaction,
and performance in an organization. They enable managers to develop
better strategies for fostering a productive and healthy work environment.

TOPIC 3: GROUP BEHAVIOUR

Here's an outline of each topic, explaining essential aspects of
organizational structure, team formation, group dynamics, and
communication within organizations:

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1. What is Organizational Structure?

- Definition: Organizational structure is the formal system of task,

authority, and responsibility relationships within an organization. It
outlines how activities are coordinated, how roles are defined, and how
information flows between different levels and departments.
- Types of Structures:
- Functional Structure: Organizes employees by specific functions,
such as marketing, finance, and production. Suitable for small or
specialized organizations.
- Divisional Structure: Groups based on products, services, or
geography. This structure is common in larger, diversified companies.
- Matrix Structure: Combines functional and divisional structures,
where employees report to both functional and project managers.
- Flat Structure: Few hierarchical levels, which promotes autonomy
and a more collaborative work environment.
- Importance: A well-designed structure aligns with the organization’s
goals and helps manage work, establish clear communication channels,
and create efficient workflows.

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2. Group and Team Formation in Organizations, Emergence of
Informal Leaders, and Working Norms

- Group and Team Formation: Groups and teams form to achieve

specific goals, solve problems, or complete projects. Teams are generally
more interdependent and committed to a common purpose than groups.
- Stages of Team Formation:
- Forming: Members get to know each other and establish initial
expectations.
- Storming: Conflicts arise as members challenge each other and
roles are clarified.
- Norming: The team establishes norms and cohesion.
- Performing: The team reaches peak efficiency and works
effectively toward goals.
- Adjourning: The team disbands after achieving its objectives.
- Emergence of Informal Leaders: Informal leaders often emerge
within teams based on expertise, personality, or influence, rather than
formal authority. They can help guide the team, foster trust, and promote
team cohesion.
- Working Norms: Norms are the informal rules that govern behavior
in a team. They help set expectations for communication, participation,
decision-making, and conflict resolution, facilitating effective teamwork.

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3. Dynamics in Teams and Groups, Group Decision-Making

Techniques, and Team Building

- Dynamics in Teams and Groups: Group dynamics refer to the

interactions between team members that influence the team’s
functionality. Healthy dynamics improve morale, collaboration, and
productivity, while unhealthy dynamics can lead to conflict and low
performance.
- Group Decision-Making Techniques:
- Brainstorming: Members generate a range of ideas without
criticism to encourage creative solutions.
- Nominal Group Technique: Members independently generate
ideas, share them with the group, and discuss before reaching a
consensus.
- Delphi Technique: Collects input from experts through multiple
rounds of feedback to achieve consensus, often remotely.
 - Majority Rule and Consensus: Teams may decide by voting
(majority rule) or by reaching general agreement (consensus), depending
on the importance of unanimity.
- Team Building: Team-building activities are designed to improve
collaboration, trust, communication, and problem-solving skills. They
strengthen relationships, clarify team roles, and align members toward a
common goal, improving overall performance.

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4. Interpersonal Relations and Communication

- Interpersonal Relations: Interpersonal relations in an organization

involve the interactions and relationships among employees, impacting
teamwork, motivation, and workplace culture. Healthy relationships
foster a positive work environment, mutual respect, and trust.
- Types of Communication:
- Verbal Communication: Face-to-face or telephone interactions that
allow for immediate feedback and clarification.
- Non-verbal Communication: Body language, facial expressions,
and tone of voice can convey emotions and attitudes.
- Written Communication: Emails, reports, and memos allow for
detailed and structured information sharing.
- Formal and Informal Communication: Formal communication
follows organizational hierarchy (e.g., reports to superiors), while
informal communication (e.g., casual conversations) can enhance
camaraderie and flow of ideas.
- Effective Communication: Clear, timely, and open communication is
essential for reducing misunderstandings, ensuring tasks are completed
correctly, and fostering collaboration. Active listening, empathy, and
feedback are critical skills for effective communication.

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These elements of organizational structure, team dynamics, and

interpersonal communication are essential for creating a cohesive,
collaborative work environment, where roles are clear, decisions are
made efficiently, and team members feel valued and engaged.

TOPIC 4: LEADERSHIP AND POWER

Here’s a detailed explanation of leadership theories, prevailing styles,
sources of power, power centers, and organizational politics:
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1. Leadership, Its Theories, and Prevailing Leadership Styles

- Definition of Leadership: Leadership is the process of influencing

and guiding individuals or groups to achieve organizational goals. It
involves setting direction, motivating, and fostering a vision to encourage
and direct team efforts.

- Theories of Leadership:
- Trait Theory: This theory suggests that certain personality traits,
such as confidence, decisiveness, and charisma, make someone a natural
leader. It focuses on inherent characteristics that effective leaders possess.
- Behavioral Theory: Focuses on specific behaviors and actions
rather than traits. It suggests that leadership can be learned by adopting
successful behaviors such as task-oriented or people-oriented behaviors.
- Contingency Theory: This theory argues that the effectiveness of a
leader depends on the context, including situational variables and
followers’ needs. Different leadership styles work better in different
situations.
- Transformational Leadership: Emphasizes inspiring and
motivating followers through vision, passion, and enthusiasm.
Transformational leaders foster creativity and encourage personal and
professional growth.
- Transactional Leadership: Based on a reward-punishment system,
transactional leaders focus on structured tasks, clear expectations, and
achieving set objectives. This approach is more task-oriented and
directive.
- Servant Leadership: Emphasizes serving others and putting
followers’ needs first. Servant leaders lead by example, prioritizing team
growth, trust, and development.
- Situational Leadership: Proposed by Hersey and Blanchard, it
suggests that effective leaders adjust their style (directing, coaching,
supporting, or delegating) based on the maturity level and needs of their
team.

- Prevailing Leadership Styles:

- Autocratic Leadership: Centralized decision-making where leaders
maintain full control and issue directives. Often effective in crisis or
highly structured situations.
 - Democratic Leadership: Involves team input in decision-making,
fostering collaboration and empowerment. Suitable for environments
needing creativity and team commitment.
- Laissez-Faire Leadership: Hands-off approach where leaders offer
minimal direction, relying on self-motivated employees. Works best with
skilled, self-directed teams.
- Transformational Leadership: Encourages innovation and change
by inspiring and engaging employees, often used in fast-paced and
creative organizations.

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2. Sources of Power, Power Centers, Power, and Politics

-Sources of Power:
- Legitimate Power: Comes from a formal position or role within the
organization. It is based on authority given by the organization (e.g., a
manager).
- Reward Power: The ability to provide rewards, such as promotions,
bonuses, or recognition. This power motivates employees through
positive reinforcement.
- Coercive Power: The capacity to enforce consequences or
punishments. Coercive power is used to ensure compliance but can lead
to resentment if misused.
- Expert Power: Based on skills, knowledge, or expertise. People
with specialized knowledge (like an IT expert) have influence due to their
unique skills.
- Referent Power: Derived from personal traits or relationships that
inspire respect, admiration, or loyalty. Leaders with charisma or strong
interpersonal skills often possess referent power.
- Informational Power: Control over information and knowledge
that others need. Individuals who have critical information about the
organization or project have this power.

- Power Centers:
- Formal Power Centers: Include individuals or groups with
authority defined by the organizational structure, such as executives,
managers, and department heads.
- Informal Power Centers: Individuals or groups who wield
influence without formal authority, often due to personal relationships,
expertise, or social connections within the organization.

- Power and Politics in Organizations:

 - Organizational Politics: Refers to the activities individuals engage
in to gain power, influence decisions, or achieve personal objectives.
Organizational politics often involves maneuvering through informal
networks and using influence tactics.
- Positive and Negative Impacts:
- Positive: Can drive collaboration, foster change, and encourage
healthy competition.
- Negative: May lead to conflicts, reduced morale, and inefficiency
when individuals prioritize personal interests over organizational goals.
- Managing Politics: Leaders can manage organizational politics by
fostering transparency, promoting ethical behavior, encouraging open
communication, and focusing on shared objectives.

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Understanding leadership styles and sources of power enables managers

to adopt effective strategies to lead teams, while awareness of power and
politics helps in navigating complex organizational dynamics and
fostering a positive work environment.

TOPIC5: DYNAMICS OF ORGANIZATIONAL BEHAVIOUR

Here’s a breakdown of Change and Organizational Development as

well as key concepts in managing organizational change:

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1. What is Change and Organizational Development?

- Organizational Change: This refers to the process by which

organizations adapt to internal or external shifts in their environment.
Change can involve minor adjustments (incremental change) or
significant transformations (radical change) in processes, structures, or
strategies.
- Organizational Development (OD): A planned, systematic approach
to improving an organization’s effectiveness. OD uses data and
behavioral science principles to enhance performance, foster innovation,
and promote positive change. It focuses on human aspects, like culture,
leadership, and communication, to help organizations adapt to change and
improve over time.
- Purpose of OD: OD aims to align the organization’s people,
processes, and culture with its strategic goals. It seeks to create a healthier
work environment, improve employee morale, and enhance overall
productivity.

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2. Managing Organizational Change: Causes for Change, Reasons for

Resistance, and Strategies for Managing Change

- Causes for Change:

- External Forces: These include economic shifts, technological
advancements, competition, globalization, and regulatory changes. For
instance, a new technology may require an organization to adapt its
processes or skillsets.
- Internal Forces: These include shifts in leadership, organizational
restructuring, operational inefficiencies, or a need to address workplace
morale or cultural issues.
- Strategic Shifts: Changes in organizational goals, mission, or
strategy can require adjustments in operations, roles, and processes to
remain competitive or seize new opportunities.

- Reasons for Resistance to Change:

- Fear of the Unknown: Employees may resist change if they are
uncertain about its implications or outcomes.
- Loss of Job Security: Changes, especially in automation or
restructuring, can create fears around job stability.
- Comfort with Status Quo: Employees accustomed to the current
way of doing things may feel uncomfortable with new procedures or
expectations.
- Poor Communication: When changes aren’t well communicated,
employees may lack understanding or feel uninformed, leading to
resistance.
- Perceived Loss of Control: Changes can make employees feel a
loss of autonomy or influence over their work.
- Mistrust in Leadership: If trust in management is low, employees
may be skeptical of the reasons for the change and resist it.

- Managing Change:
- Effective Communication: Clearly explain the purpose, benefits,
and process of the change. Open, transparent communication helps build
trust and reduces uncertainty.
- Involving Employees in the Change Process: Engaging employees
in decision-making fosters a sense of ownership and reduces resistance.
Employees who feel their voices are heard are more likely to support
change.
- Providing Training and Support: Preparing employees with
necessary skills and resources builds confidence and minimizes
disruption.
- Building Trust and Addressing Concerns: Openly addressing
employee concerns, providing reassurances, and demonstrating empathy
can help ease fears around change.
- Implementing Change Incrementally: Phasing changes in
gradually gives employees time to adapt, rather than overwhelming them
with sudden shifts.
- Celebrating Small Wins: Acknowledging and celebrating early
successes can encourage continued acceptance and engagement with the
change process.

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Organizational Development provides a framework for effective,

sustainable change that aligns with the organization’s long-term goals,
while change management strategies address the human side of change,
helping employees transition smoothly and supporting a positive,
adaptable culture.