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ORGANIZATIONAL BEHAVIOUR

Dr. Prachi Agarwal

Associate Professor
 Unit I: Introduction to Organizational
Behavior
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 Nature and Concept of OB;

 Models of Organizational Behavior; Relationship with Other Disciplines
 Contemporary challenges
 Why did that happen?
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 It was a bad experience. You ordered a soft drink and a

sandwich. The person who served you was abrupt and
unpleasant, did not smile, ignored you, did not make eye contact,
and continued their conversation with a colleague instead of
asking if you wanted anything else. They slapped your change
on the counter rather than put it in your hand, then turned away.
You have used this café before, but you have never been treated
so rudely. You leave feeling angry, deciding never to return.

 How can you explain the unusual behaviour of the person who
served you?
How can we explain your experience in the
café?
 the personality and skills of the individual who served you
 poor staff training;
 staff absences have increased work pressure;
 long hours, fatigue, poor work–life balance;
 equipment not working properly;
 anxiety about organizational changes;
 domestic difficulties – family arguments, poor health;
 low motivation due to low pay;
 an autocratic supervisor;
 a dispute with colleagues created an uncomfortable atmosphere;
 timing – you came in at the wrong moment.
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 If you have a limited understanding of organizational

behaviour, then you have a limited understanding of one of
the main sets of forces that affect you personally, that
influence the society and culture in which you live, and which
shape the world around you.

 Organizations affect everything that you do – sleeping,

waking, dressing, eating, travelling, working, relaxing,
studying – everything
Introduction

Basic Concepts
Organizations are complex
Human behavior in organizations is sometimes
unpredictable
Human behavior can be partially understood
Organizational behavior is needed
 Isn’t OB Just Common Sense?

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 Why study OB?
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 Employers Want Both Hard and Soft Skills

 Hard skills are the technical expertise and
knowledge to do a particular task
 Soft skills relate to our human interactions
 “People rise in organizations because of their hard
skills and fall due to a dearth of soft skills”
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 Experts agree: Anyone can take a course in C++,

but it’s not going to land you the job. . . . The most
sought-after skill-sets for recruiters are becoming
less and less about proficiency in specific [technical
or job skills] and more about how you think . . .and
work within the context of the team. Learning [the
technical details or skills of a job] is the easy part.
Having the mindset to apply it . . . [and
social/psychological dexterity] are the critical skills
 The people make the place!!
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 Steve Jobs, cofounder,

chairman, and CEO of Apple
Inc. attributes the innovations
at Apple, which include the
iPod, MacBook, and iPhone,
to people, noting,
 “Innovation has nothing to do
with how many R&D dollars
you have.…It’s not about
money. It’s about the people
you have, how you’re led, and
how much you get it” 
What is Organizational Behavior?

Insert Figure 1.1 here

Definitions of Organizational Behavior

•Studies the influence that individuals, groups and

structure have on behavior within organizations.

•Organizational behavior (OB) is the study of human

behavior in the workplace, the interaction between
people and the organization, and the organization
itself.
Organizational Behavior

A field of study that

investigates the impact that
individuals, groups, and
structure have on behavior
within organizations, for the
purpose of applying such
knowledge toward improving
an organization’s effectiveness.
Chief Goal of OB

To apply that knowledge toward improving an

organization’s effectiveness.
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 Organizational behavior helps to analyze 'why'

and 'how' an individual behaves in a particular
way. Human behavior is a complex phenomenon
and is affected by a large number of factors
including the psychological, social and cultural
implications.
 Organizational behavior integrates these factors to
provide simplicity in understanding the human
behavior
Three Levels of OB Analysis
 Three Levels of OB Analysis

Individual Level Groups and Interpersonal

Relations
Individual differences, mental
ability, and personality Interpersonal communication
Learning, perception, attitudes, Group dynamics and teamwork
values, and ethics Leadership
Individual decision making Power, politics, and influence
and creativity
Foundation concepts of motivation
Conflict, stress, and well-being

The Organizational System

and the Global Environment
Organizational structure and design
Organizational culture and change
The learning organization and
knowledge management
Cultural diversity and international
organizational behavior
 Contributing Disciplines to OB

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Challenges and Opportunities for OB

Globalisation
Workplace Diversity
Total Quality Management
Coping with Temporariness
Technological Advancements
Responding to Economic Pressures
Improving Ethical Behavior
Responding to Globalization

Increased foreign assignments

Working with people from
different cultures
Overseeing movement of jobs to
countries with low-cost labor
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 Managing Workforce Diversity
Refers to variations in workforce composition based on
personal and background factors of employees
Dimensions of Workforce
Diversity
 A rough guide to generations
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Communication Styles of Generations
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 Generation C is the label being given to those born after 1990.

 The ‘C’ stands for connected, communicating, content-centric,
computerized, community oriented and always clicking.
 First generation to have grown up with the internet, social
media and mobile handheld computing, for whom 24/7
mobile and internet connectivity are taken for granted, and
freedom of expression is the norm.
 Encourage more flexible forms of working, less hierarchical
organizations, and they are blurring the boundaries between
work and personal life.
Diversity and Decision Making
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Diversity Implications

Managers have to shift their philosophy from treating

everyone alike to recognizing differences and
responding to those differences in ways that ensure
employee retention and greater productivity while, at
the same time, not discriminating.
 Total Quality Management
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 It is a philosophy of management that is driven by

the constant attainment of customer satisfaction
through the continuous improvement of all
organizational processes.
 (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
 Coping with Temporariness

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 Product life cycles are slimming

 The methods of operations are improving
 Fashions are changing very fast.
 Change is an ongoing activity for most managers.
 Technological Advancements
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 Repurposing or releasing
talent
 New technologies often
have security
vulnerabilities
 Places pressure on
companies  to look for
tech talent
 Pressure to run large
corporations like a start up
 Responding to Economic Pressures
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 Managing employees well when times are tough is

just as hard as when times are good.
 But the OB approaches sometimes differ.
 In good times, understanding how to reward,
satisfy, and retain employees is at a premium.
 In bad times, issues like stress, decision making,
and coping come to the fore.
 Improving Ethical Behavior
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 Blowing the whistle on illegal activities

 Following orders with which they personally do
not agree
 Giving inflated performance evaluations
 Playing politics for career advancements
 Examples of Unethical Behavior
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Types of Study Variables in OB
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Independent (X) Dependent (Y)

The presumed cause of This is the response to X
the change in the (the independent
dependent variable (Y). variable).
This is the variable that It is what the OB
OB researchers researchers want to
manipulate to observe predict or explain.
the changes in Y. The interesting variable!

Predictive
X Y
Ability
 The Independent Variables
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The independent variable (X) can be at any of these three

levels in this model:
Individual
Biographical characteristics, personality and emotions,
values and attitudes, ability, perception, motivation,
individual learning and individual decision making.
Group
Communication, group decision making, leadership and
trust, group structure, conflict, power and politics, and
work teams.
Organization System
Organizational culture, human resource policies and
practices, and organizational structure and design.
 Dependent variable
Things which will be affected by OB
Productivity
What factors influence the effectiveness and efficiency
of individuals
Absenteeism
Absenteeism is not all bad
Having too high employee absent rate will affect
productivity
Turnover
Not all turnover is bad
High turnover rate…in some degree affect productivity
Organizational citizenship behavior (OCB)

Helping others on one's work team

Volunteering for extra job activities
Avoiding unnecessary conflicts
Making constructive statements about one's work
group and the overall organization

Job satisfaction
Implications for Managers

Improve people skills

See the value of workforce diversity
Improve quality and productivity
Cope in a world of temporariness
Offer guidance in creating an ethically
healthy work environment
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