Chapter 1

Introduction to
Organizational Behavior

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 Module -1: Introduction to Organizational Behavior:
Models of OB & Contributions of other Disciplines to OB
5.1.1 Learning objectives:
•To understand the basic concepts of organizational behavior
•To identify and relate various models of behavior in an
organization.
•To understand the contributions made by other disciplines to
Organizational Behavior.

5.1.6 Learning outcome:

Students would be able to:
•Understand the importance of Organizational Behavior as a course
for management professionals.
•Apply various models and explain the impact of business
environment on behavior and vice versa.
•Identify the contributions made by other disciplines to OB.
 What is a Organization?

• Organization: Definition :
According to, Louis Allen, “Organization is the process of
identifying and grouping work to be performed, defining
and delegating responsibility and authority and
establishing relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.”

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 Cont..
• An organization is a consciously coordinated social
unit composed of two or more people that functions
on a relatively continuous basis to achieve a common
goal or set of goals.

• An organization is a structure having relationship

that is inter winded between people who work with
collective sense of purpose

 Behaviour - Behaviour is a way how people

react to certain situation.
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 What s Organizational
Behaviour?

Meaning :
•Organizational behavior can be defined as it is an
interdisciplinary subject which covers the study of workers or
employees related behavior inside a organization.

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 Definition :
According to Keith Davis quoted as “Organizational
Behavior is the study and application of knowledge about
how people act within organization."

Fred Luthans “Organisational behaviour is directly

concerned with the understanding, production and control of
human behaviour in organisations.”

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• Organizational behavior is concerned with people's thoughts,
feelings, emotions and actions in setting up a work.

• Understanding an individual behaviour is in itself a challenge,

but understanding group behaviour in an organisational
environment is a monumental managerial

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 NATURE AND SCOPE (FEATURES) OF ORGANIZATIONAL
BEHAVIOUR

• 1. A Separate Field of Study and not a

Discipline Only
• 2. An Interdisciplinary Approach
• 3. An Applied Science
• 4. A Normative Science
• 5. A Humanistic and Optimistic Approach
• 6. A Total System Approach

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 1. A Separate Field of Study
and not a Discipline Only

• By definition, a discipline is an accepted science that is

based on a theoretical foundation. But, O.B. has a multi-
interdisciplinary orientation and is, thus, not based on a
specific theoretical background.

• It is integrating many disciplines. It integrates social sciences and

other disciplines that can contribute to the Organizational
Behavior.
• .

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 2. An Interdisciplinary
Approach

• Organizational behaviour is essentially an

interdisciplinary approach to study human
behaviour at work.

• It tries to integrate the relevant knowledge drawn

from related disciplines like psychology, sociology
and anthropology to make them applicable for
studying and analysing organizational behaviour.

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 3. An Applied Science

The very nature of O.B. is applied. What O.B.

basically does is the application of various researches
to solve the organizational problems related to human
behaviour.

Hence, O.B. can be called both science as well

as art.

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 4. A Normative Science

• Organizational Behaviour is a normative

science also.
• While the positive science discusses only
cause effect relationship, O.B. prescribes how
the findings of applied researches can be
applied to socially accepted organizational
goals.

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 5. A Humanistic and Optimistic
• Organizational Behaviour applies humanistic approach
towards people working in the organization. It, deals with
the thinking and feeling of human beings.

• O.B. is based on the belief that people have an innate

desire to be independent, creative and productive. It also
realizes that people working in the organization can and
will actualize these potentials if they are given proper
conditions and environment.

• Environment affects performance or workers working in an

organization.
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 Approach
6. A Total System Approach
• The system approach is one that integrates all the variables,
affecting organizational functioning.

• The systems approach has been developed by the

behavioural scientists to analyse human behaviour in view
of his/her socio-psychological framework.

• This implies that organization consists of many inter

related and inter dependent elements affecting one another
in order to achieve the overall results.
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 SCOPE OF ORGANIZATIONAL BEHAVIOUR
(Key Elements of OB)

• The three internal organizational elements viz.,

1. People,
2. Structure
3. Technology and
The Fourth (4) element, i.e., external
4. Social systems may be taken as the scope of O.B.

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 CONT.
1. People
•People make up the internal social system of the organization.
•They consist of individuals and groups, and large groups as well
as small ones.
•People are the living, thinking, feelings beings who created the
organizations.
– It exists to achieve their objectives.
– Organizations exist to serve people.
– People do not exist to serve organizations.

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 2. Structure
Structure defines the official relationships of people in organizations.
Different jobs are required to accomplish all of an organization’s
activities.
•The main structure relates to power and to duties. For example, one
person has authority to make decisions that affect the work of other
people.
Some of the key concepts of organization structure are listed as below:
a) Hierarchy of Authority: This refers to the distribution of authority
among organizational positions and authority grants the position holder
certain rights including right to give direction to others and the right to
punish and reward.

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 CONT..
b) Division of Labor: This refers to the distribution of responsibilities
and the way in which activities are divided up and assigned to
different members of the organization is considered to be an element
of the social structure.

c) Span of Control: This refers to the total number of subordinates

over whom a manager has authority.

d) Specialization: This refers to the number of specialties performed

within the organization.

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 3. Technology
• Technology imparts the physical and economic conditions within
which people work.

• With their bare hands people can do nothing so they are given
assistance of buildings, machines, tools, processes and resources.

• The nature of technology depends very much on the nature of the

organization and influences the work or working conditions.

• Thus, technology brings effectiveness and at the same restricts

people in various ways.
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 4. Social systems (External Environment)
• All organizations operate within an external environment. A single
organization does not exist alone. It is part of a larger system that contains
thousands of other elements.
• All these mutually influence each other in a complex system that becomes the
lifestyle of the people.
• It influences the attitudes of people, affects working conditions, and provides
competition for resources and power.
• Two Distinct Sets of Environment:
i) Specific Environment: This includes the suppliers, customers, competitors,
governments‟ agencies, employees, unions, political parties etc.
ii)General Environment: It includes the economic, political, cultural,
technological and social factors in which the organization embedded.
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 MAJOR DISCIPLINES & CONTRIBUTIONS TO
ORGANIZATIONAL BEHAVIOR
• Motivation
• Perception
• Attitude
• Personality
• Leadership
• Learning
• Emotions
PSYCHOLOGY:
• Training
• Job satisfaction Unit of analysis is
Study of human • Decision making individual
• Performance Management
mind and its • Employees selection
impact on life • Work design
• Work stress
 MAJOR DISCIPLINES & CONTRIBUTIONS TO
ORGANIZATIONAL BEHAVIOR (Contd.)

• Social groups & Work teams

• Social institutions
• Communication
SOCIOLOGY: • Power
• Conflict Unit of analysis is
• Social / Gender relations Individual in
Study of society & • Cultural impact Groups
social • Inter / Intra-group Behavior
relationships • Formal organizational structure
and nature of organizations
• Organizational culture
• Organizational climate
 MAJOR DISCIPLINES & CONTRIBUTIONS TO
ORGANIZATIONAL BEHAVIOR (Contd.)

• Group dynamics
• Group processes
• Group decision making
SOCIAL • Group think
PSYCHOLOGY: • Group feeling Unit of analysis is
• Group cohesion Individual in
Study of social • Group / Org. change Groups &
dynamics and their •
Group / org. Groups on
impact on social
communication Individuals
transactions
• Group belongingness
• Group conflicts
• Group attitude &
perception
 MAJOR DISCIPLINES & CONTRIBUTIONS TO
ORGANIZATIONAL BEHAVIOR (Contd.)

• Social genetics
• Group’s racial impact
• Group’s racial relations
• Group’s inter-religious
ANTHROPOLOGY: relations Unit of analysis is
• Group’s inter-cultural individual’s
Study of the human relations ancestry in Group
heredity and the • Group’s inter-racial relations
ancestral impact on • Group’s / organization’s
human beings environment
• Group values
• Group morals
 MAJOR DISCIPLINES & CONTRIBUTIONS TO
ORGANIZATIONAL BEHAVIOR (Contd.)
• Organizational Power
• Organizational conflict
• Organization’s management
POLITICAL nature
SCIENCE: • Significance for power
Unit of analysis is
• Significance for participation group
Study on power
• Significance for opposition
and politics as
social mandate • Significance for suggestion
• Significance for labor
decisions
• Significance for bargaining
• Receptivity to change
MODELS OF ORGANIZATIONAL BEHAVIOR

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 Models…..
Autocratic Model
The basis of this model is power managerial
orientation of formal and official authority.
Those who are in command/order must have the
power to demand “you do this or else…..”
The employee in turn are oriented towards
obedience and dependence on boss.
The psychological result for employees is
dependence on their boss and the performance
result is minimal.
Then,the boss pays minimum wages because of
minimum performance by the employees
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 Models…..
How do you think is the application of Autocratic
Model in the present organizations of developed
and developing countries?

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 Models…..
Custodial
 The basis of this model is economic resources with
managerial orientation of money to pay wages and
money used resource
 The employee in turn are oriented towards security.
 The employee need that is met is security.
 This leads to employee dependence on the
organization rather than on their boss.
 As a result, employee feel with reasonable
containment/stability or maintenance.
 But, this contentment/happiness or satisfaction does
not necessarily produce strong motivation; it may
produce only passive (acted upon) co-operation.
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 Models…..
Supportive
 The basis of this model is leadership with a
managerial orientation of support than power and
money.
 The employees in turn are oriented towards job
performance and participation
 Psychological result is a feeling of participation
and task involvement in the organization.
 Employees are strongly motivated because their
status and recognition needs are better met thus
they have awakened drive for work.

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 Models…..
 How do you think is the application of this model
in current organizations? Why it does work or not?

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 Models…..
Collegial
 It is an extension of the supportive model.
 The term ‘collegial’ relates to a body of people
working together co-operatively. Managers are seen as
joint contributor rather than as boss.
 The basis of this model is partnership/ supported each
other with a managerial orientation of teamwork and
the employee orientation is responsibility and self
discipline.
 The result is that employees feel needed and useful

◦ “There is at least one thing that cannot be done

without you.”
 The employee need that is met is self-actualization.
 The performance result is moderate enthusiasm
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 Models…..
System Model
 It is an emerging model of OB
 It is the result of a strong search for higher
meaning at work by many of today’s employees;
they want more than just a paycheck and job
security from the jobs.
 To accomplish this, managers must increasingly
demonstrate a sense of caring and compassion,
being sensitive to the needs of a diverse workforce
with rapidly changing needs and complex personal
and family needs.

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 Models…..
 Under the system model, managers try to convey
each worker,
“You are an important part of our whole system.
We sincerely care about each of you. We want
to join together to achieve a better product or
service, local community, and society at large. We
will make every effort to make products that are
environmentally friendly”.
 The role of a manager becomes one of facilitating
employee accomplishments through a variety of
actions

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 Models…..
 Facilitators role of the manager in this model
involves:
• Support employee commitment to short- and
long-term goals.
• Coach individuals and groups in appropriate
skills and behaviors.
• . Model and foster self-esteem/confidence
• Show genuine/real concern/sense and empathy
for people.
• Offer timely and acceptable feedback.
• Influence people to learn continuously and share
that learning with others.
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 Models…..

 In response, employees embrace the goal of

organizational effectiveness, and recognize the
mutuality of company-employee obligations in a
system viewpoint.
 Creates a sense of psychological ownership for the
organization and its product services.
 Employees go beyond the self- discipline and
reach a state of self-motivation.
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MODELS OF ORGANIZATIONAL BEHAVIOR
DIMENSIONS AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL SYSTEM MODEL
MODEL MODEL MODEL MODEL

BASIS Power Economic Leadership Partnership Trusteeship

Resources
MANGERIAL Authority Money Support Teamwork Caring &
ORIENTATION
compassionate
EMPLOYEES Obedience Security & Job Responsible Psychological
ORIENTATION
Benefits performance behavior ownership
EMPLOYEES’ Dependence Dependence Participation Self- Self-motivation
PSYCHOLOGI
CAL RESULT
on boss on discipline
organization
EMPLOYEES’ Subsistence Security Status and Self- Wide range
NEEDS MET
recognition actualization
PEFORMANCE Minimum Passive Moderate Moderate Passion &
RESULT
cooperation enthusiasm enthusiasm commitment to
org. goals
 Model Autocratic Custodial Supportive Collegial System

Basis of Economic
Power Leadership Partnership Facilitation
Model resources

Managerial Formal Trust, Caring,

Money Support Teamwork
Orientation Authority compassion
Employee Security and Job Responsible Self-
Obedience
Orientation benefits performance behavior motivation

Employee Dependence Psychological

Dependence Self-
Psychological on Participation ownership
Result on boss discipline
organization

Employee Needs Status and Self-

Subsistence Security Wide range
Met recognition actualization

Passion and
Performance Passive Awakened Moderate commitment
Minimum
Result cooperation drives enthusiasm to company
goals
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 IM
BE PORT
HA
VIO ANCE
R
IN OF I
OR ND
G A IV I
N IZ D U A
AT L
IO N
S
 QUESTIONS FOR SELF - STUDY

• 1) What is organization? Explain the need and importance

of organizational Behaviour.
• 2) Explain in detail the contribution of disciplines to OB.
• 3) What are the models of OB? Explain them in detail

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 THE END

Any clarification?

HAVE A NICE NIGHT!!! 