Organizational

Behaviour
 What Is an Organization?
• A consciously coordinated social unit,
composed of a group of people, which
functions on a relatively continuous basis to
achieve a common goal or set of goals.
• It has “Human Beings” as the most effective
resource. Understanding them is important
for the realizations of the organizational
goals.
Organizational Behaviour(OB)
A field of study that investigates the
impact that individuals, groups and
structure have on behaviour within
organizations, for the purpose of
applying knowledge toward improving an
organization’s effectiveness.
• OB studies human behaviour at
individual level, group level, and
organisational level
• It’s a Systematic Approach which takes
into accounts variables like people,
structure, and technology affecting
organisational functions.
• It is a branch of Social Sciences that build
theories that are applied to predict,
understand and control behaviour in a
work organisation.
Contributing Disciplines to
the OB Field
• Psychology
• Sociology
• Social Psychology
• Anthropology
• Political Science
• Psychology- measures, explains and sometimes changes the
behaviour of humans. It is concerned with individual behaviour in
other words intra-personal aspects of OB like motivation,
personality, attitude, opinion and learning
• Sociology-Study of people in relation to their social environment
and culture. It studies behaviour of people in relation to other
fellow human beings. It contributes to the study of interpersonal
dynamics like leadership, group-dynamics, communication etc
• Social Psychology- Focuses influence of people on one another. It is
useful in measuring, understanding, and changing attitudes,
communication patterns, the ways in which group activities can
satisfy individual needs, and in group decisions-making process.
• Anthropology-Study of Societies to learn about human beings and
activities. It is the study of human race, in particular, its culture.
Culture has significance influence on what people learn and how
they behave
• Political Science- It is the study of behaviour of individuals and
groups within a political environment. It includes conflict
resolution, group coalition, allocation of power and how people
manipulate power in their self- interest
 Toward an OB Discipline
Behavioural Contribution Unit of Output
science analysis
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Psychology Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Individual

Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Sociology

Formal organization theory Study

Organizational technology Group Organizational
of
Organizational change Behaviour
Organizational culture

Behavioural change
Attitude change
Social psychology Communication
Group processes
Group decision making
Organization
Comparative values system
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational culture
Organizational environment

Conflict
Political science Intraorganizational politics
Power
 Role Of OB
• To get productive work done from
employees mangers must know how
people in an organisation behaves. There
are 3 roles
• Understanding Human Behaviour
-Individual level, Interpersonal level,
Group Level and Intergroup level
• Controlling and Directing
-Use of Power and Sanction
-Leadership
-Communication
-Organisational Climate

• Organisational Adaptation
Challenges & Opportunities
• Responding to Economic Pressure
• Responding to Globalization
• Working with people of different cultures
• Managing Work Diversities
• Improving Customer Service
• Stimulating Innovation Change
• Coping with “Temporariness”
• Working with Networked Organisation
• Helping Employees Balance Work-life
Conflicts
• Creating a Positive Work Environment
and Improving Ethical Behaviour
 Importance Of OB
• The field of OB uses scientific research to help understand
and predict organizational life. It helps us make sense of the
workplace and predict what people will do under various
conditions.
• OB theories and concepts helps in influencing oragnisational
events. Whether a marketing specialists or a computer
programmer, one should know how to communicate
effectively with others, manage conflicts, make better
decisions, ensure commitment to ideas, and help work teams
operate more effectively.
• It helps an individual understand himself/herself and others
better. It helps improve interpersonal relationships better.
Attitude, Perception, Leadership, Communication, T.A. and
Conflicts, an understanding of all these will change the very
style of talking and functioning of an individual.
• A manager gets his work done by delegation. He or she
can successfully do it only if subordinates are motivated
to do work for better results. OB helps managers
understand motivation and what to do to motivate
subordinates for higher productivity and better results.
• OB is useful in maintaining cordial industrial relations.
It helps understand the causes of the problem, and
predict its course of action, and control its
consequences. Eg labour conflicts with management
and sometimes employees work is steadily declines, it is
always not just because of promotions or bonus.
• OB is also helpful in the field of marketing.
• A successful manager should have ‘people skills’ which
include the ability to understand one’s employees and
use this knowledge effectively to make them more
efficient
Basic OB Model, Stage I

Organization systems level

Group level

Individual level
 Challenges Facing the
Workplace
Organizational Level
• Productivity
• Developing Effective Employees
• Global Competition
• Managing in the Global Village

Group Level
• Working With Others
• Workforce Diversity Workplace

Individual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically
 Today’s Challenges in the
Workplace
• Challenges at the Individual Level
– Job Satisfaction
– Empowerment
– Behaving Ethically
• Challenges at the Group Level
– Working With Others
– Workforce Diversity
 Today’s Challenges in the
Workplace
• Challenges at the Organizational Level
– Productivity
– Developing Effective Employees
• Absenteeism
• Turnover
• Organizational Citizenship
– Deviant Workplace Behaviour
– Organizational Commitments and workplace
interactions
 Productivity

• Productivity
– A performance measure including
effectiveness and efficiency
• Effectiveness
– Achievement of goals
• Efficiency
– The ratio of effective work output to the
input required to produce the work
 Effective Employees

• Absenteeism
– Failure to report to work
• Turnover
– Voluntary and involuntary permanent withdrawal
from the organization
• Organizational citizenship behaviour
– Discretionary behaviour that is not part of an
employee’s formal job requirements, but is helpful to
the organization
 Basic OB Model, Stage II
Human resource
policies and
practices

Organizational Organization Work design

culture structure and
and design technology

Organization
Systems Level

Change and Group

decision making Leadership
stress

Group Work
Communication Productivity
structure teams

Absence

Other Power and Turnover

groups Conflict politics Human
Group Level output
Satisfaction

Organizational
commitment
Biographical
characteristics Workplace
interaction

Personality Perception

Motivation Individual
Values
and decision making
attitudes
Human Individual
input Ability
Differences
Individual Level
SOBC Model of Organizational
Behavior
S- Stimulus O-Organism B- Behaviour C- Consequences

• SOBC is an acronym in which S represents the stimulus situation (such

as light, sound job demands, supervisors, co-workers’ characteristics
and equipments); O (organism) refers to the characteristics of the
person, including personality, needs, attitudes, values and intentions; B
refers to the person’s behavioural responses or actions in the situation
under consideration; and, finally C represents the outcome or the
consequences associated with the behavioral responses
• A micro model that specifies the variables and how they relate to each
other. SOBC is a model which helps to understand, predict and control
OB on the basis of managing the contingent (conditional ) environment.
 S-O-B-C MODEL
-S Stimulus is variable or environmental situation with respect
to organization environment. It includes organizational
policy, Organizational Structure and Decision making.
-O Organism is the variable that understands organizational
participants(humans) which link the environmental
situation and the resulting organizational behavior.
-B Represents the behavior.
-C Consequence is an environmental variable that depicts
organizational and group dynamics and the outcome
(consequences) of previous interactions between
environmental, personal and behavioral variables
• For Instance, differences in employee performance (B
for behaviour) are a function of numerous controllable
factors. Naturally, managers are concerned with this,
and they can boost it through changing stimuli(S), such
as creating new goals, setting up new incentives schemes
and identifying employees who need training.
Frequently, managers ask an employee(O) to perform a
trial run(S) before the actual task is attempted.
Additionally, after a task is completed(B), the manger
will review the employee’s performance(C). For every
action (B), there are reactions at the managerial and
environmental levels(C). To fully understand the
interplay between managers, organisations, and
employees, it is necessary to characterise the difference
between employee needs and organisational
productivity.
Summary and Implications
• OB is a field of study that investigates the impact that
individuals, groups, and structure have on behaviour
within an organization.
• OB focuses on improving productivity, reducing
absenteeism and turnover, and increasing employee job
satisfaction and organizational commitment.
• OB uses systematic study to improve predictions of
behaviour.
• Implement change program, improve customer service,
Suggestions for labour shortage, Maintain healthy work
culture
Thank you