ORGANISATIONAL BEHAVIOUR

- INTRODUCTION

IILM University,
Gurgaon
Section : B and C
Sessi Topics Reading/Reference Material Class
on Activity
1-3 Historical - Introduction and Nature of OB: Definitions,
origins of Assumptions and Significance of OB
- Basic OB Model: Situation-Organism-Behavior
OB
Model, Diversity, Biographical characteristics
and Foundations
- Contribution of other Disciplines to OB
- Challenges and Opportunities for OB
 Topics to be covered
 Introduction and Nature of OB: Definitions,
Assumptions and Significance of OB

 Basic OB Model: Situation-Organism-Behavior Model,

Diversity, Biographical characteristics and Foundations

 Contribution of other Disciplines to OB

 Challenges and Opportunities for OB

Fundamental Management Skills

 Management Skill Mixes at Diff

 ORGANISATION
 BEHAVIOUR
“Organisation Behaviour is:Definitions
concerned with the study of what people do in an organisation

and how that behaviour affects the performance of the organisation.”(Robbins: 1998,9)

 Fred Luthans defines organizational behavior (OB) as the study of human behavior in

organizations, and the understanding, prediction, and control of that behavior

 According to L. M. Prasad, “Organisational behaviour can be defined as the study and

application of knowledge about human behaviour related to other elements of an

organisation such as structure, technology and social systems.”

 In words of John Newstram and Keith Devis, “Organisational behaviour is The study and

application of knowledge about how people as individuals and as groups act within

organisations. It strives to identify ways in which people can act more effectively.”
Organizational Behavior
The study of individual behavior and group
dynamics in organizational settings

Organizational Variables

Organizational Design
Performance appraisal Work design
Communications

Human Behavior

Organizational Structure Jobs

ORGANISATION BEHAVIOUR

The study of Organisational Behaviour involves:

 consideration of the interaction among the formal

structure

 the tasks to be undertaken

 the technology employed and the methods of carrying

out work

 the behaviour of people

 the process of management

 the external environment

OBJECTIVE Of OB


1) It explains why & how a person behaves.

 2) It helps to predict how an individual might

behave or react at a particular situation.

 3) It helps a manager to have control over his

employees.

 4) It also allows an individual to even have control

over his feelings & emotions.
 ORGANIZATIONAL BEHAVIOUR
Key forces affecting Organizational Behavior
People
• Individuals
• Groups

Environment Structure
• Government • Jobs Organizational Behavior
• Competition • Relationships
•Societal pressure

Technology
• Machinery
• Computer hardware&software
 Internal/External Perspective
of Human Behavior
Internal Perspective External Perspective
Understand Thoughts, feelings, External events,
human behavior past experiences, behavioral consequences,
in terms of and needs & external forces

Explain human Individuals’ history & Surrounding external

behavior by personal value events & environmental
examining system forces

Each Perspective has produced

motivational & leadership theories.
Basic Assumptions of OB
The nature of people

• 1. Individual Differences
• 2. A whole person
• 3. Caused Behavior
• 4. Value of the person

The nature of organization

• 5. Social System
• 6. Mutual Interest
The nature of people

1. Individual Differences
•People are unique in their thinking and behavior, influenced by both
genetics and environment.

2. A Whole Person
•Employees are more than just their skills; their emotional and
physical well-being must also be considered.

3. Caused Behavior
•Employee behavior is influenced by specific internal and external
factors, not random.

4. Value of the Person

•Every individual has intrinsic worth and should be treated with dignity
and respect in the workplace.
The nature of organization

Social System
•Organizations function as social systems where all parts are
interdependent, with both formal and informal structures influencing
behavior.

2. Mutual Interest
•Organizations and employees have a shared interest in each other's
success, fostering cooperation and mutual benefits.
 Nature of OB
1. A Separate Field of Study
•OB is a distinct field, not yet fully recognized as a science, and
should be viewed as a field of study.

2. It is an Applied Science
•OB aims to solve organizational problems related to human
behavior, combining science and art.

3. Goal-Oriented
•OB is focused on achieving organizational goals, balancing them with
individual goals when conflicts arise.

4. Focus on People
•OB prioritizes the needs and motivations of people, fostering
creativity and independence for achieving goals.

5. Interdisciplinary Approach
•OB integrates ideas from behavioral and social sciences to enhance
relationships between people and organizations.
Toward an OB Discipline
FIVE MODELS OF ORGANISATIONAL
BEHAVIOUR

• Autocratic model
• Custodial model
• Supportive model
• Collegial model
• System model
Models of OB:
1) Autocratic Models:
Autocratic describes a way of ruling, but not in a nice way.
An autocratic leader is one who rules with an iron fist in other
words someone with the behavior of a dictator. The managers
exercise their command over employees. The managers give orders
to employees & they need to obey it.

2) Custodial Model:
Employees usually think bad about Autocratic system.
Thus managers develop custodial Model which helps to develop
better employee satisfaction & security.
3) Supportive Model:
It is a style that provides an atmosphere to help
employees grow & accomplish their tasks successfully. Here the
workers become ready to share responsibility & they improve
themselves.

4) Collegial Model:
It is an extension of supportive model. It means a group
of people having common purpose. Its basic function lies on the
management building a feeling of partnership with employees.
Situation-Organism-Behavior
Model
The S-O-R model, which stands for Stimulus-Organism-Response, is a psychological
framework that explains how external stimuli (S) affect an individual's internal
state (O) and how this, in turn, influences their behavior or response (R).

Key Components:

1.Stimulus (S):
1. This refers to any external factor or event in the environment that triggers a
reaction. In a workplace, stimuli could be things like a new project,
feedback from a supervisor, or a change in company policy.
2.Organism (O):
1. The "Organism" represents the individual's internal processes, including
emotions, thoughts, attitudes, and physiological state. This is where the
stimulus is interpreted and processed. Different individuals may perceive
and react to the same stimulus differently based on their unique internal
states.
3.Response (R):
1. The "Response" is the behavior or reaction that follows the organism's
processing of the stimulus. This could be any action, such as making a
decision, changing behavior, or expressing an emotion.
Application in Organizational Behavior:

•In an organizational context, the S-O-R model helps in understanding

how employees react to different stimuli, such as management
decisions, workplace culture, or interactions with colleagues.

•For example, a positive stimulus like recognition from a manager (S)

might lead to a positive internal state in the employee (O), resulting in
increased motivation and productivity (R). Conversely, a negative
stimulus, such as harsh criticism, could lead to stress or demotivation,
resulting in poor performance.
Challenges of Organisational
Behavior
1. Responding to Globalization
•Managing a workforce with diverse cultural backgrounds.
•Adapting management practices to different cultural norms and values.

2. Managing Workforce Diversity

•Addressing the needs of a heterogeneous workforce including different
genders, ethnicities, ages, and physical abilities.
•Creating inclusive practices to enhance employee retention and productivity.

3. Improving Quality and Productivity

•Implementing Total Quality Management (TQM) to focus on continuous
improvement and customer satisfaction.
•Reengineering organizational processes for efficiency and effectiveness.
4. Using New Information Technology
•Enhancing creativity and organizational learning through technology.
•Leveraging IT for better decision-making and problem-solving.

5. Developing Organizational Ethics and Well-being

•Establishing ethical guidelines and practices to navigate ethical dilemmas.
•Promoting employee well-being through supportive policies and practices.

6.Improving People Skills

•Developing interpersonal skills for better communication, motivation, and team-
building.
•Training managers and employees in effective people management techniques.

7. Empowering Employees
•Decentralizing decision-making and giving employees control over their work.
•Encouraging the use of self-managed teams for increased autonomy and
responsibility.
8. Coping with Temporariness
•Adapting to a constantly changing work environment with flexibility and resilience.
•Managing ongoing change effectively while maintaining organizational stability.

9. Stimulating Innovation and Change

•Fostering a culture of creativity and innovation within the organization.
•Encouraging employees to embrace and drive change to avoid stagnation.

10.Managing Human Resources for Competitive Advantage

•Strategically managing talent to enhance the organization’s competitive position.
•Implementing HR practices that attract, retain, and develop top talent.

11. Managing the Global Environment

•Navigating the complexities of global markets and international operations.
•Developing strategies to compete effectively on a global scale.
Diversity:

•Diversity refers to the variety of differences among people in an

organization. This includes not only demographic differences like age,
gender, ethnicity, and race but also differences in abilities, experiences,
and perspectives. Understanding diversity helps organizations manage
and leverage these differences to improve performance, innovation, and
employee satisfaction.

Biographical Characteristics:

•Biographical characteristics are personal attributes such as age, gender,

marital status, and tenure that are objective and easily obtained from
personnel records. These characteristics are often used to study how they
relate to employee performance, job satisfaction, and turnover. For
example, older employees may bring more experience but might have
different attitudes towards technology compared to younger employees.
 CHALLENGES FACED BY OB SPECIALIST

MANAGING CHANGED
DIVERSITY IMPROVING EMPLOYEE
(DEMOGRAPHICS) EXPECTATIONS
PEOPLE SKILLS

ETHICAL OB CHALLENGES
BEHAVIOR GLOBALISATION

IMPROVING
TECHNOLOGY QWALITY AND
PRODUCTIVITY
OPPORTUNITIES FOR ORGANISATIONAL BEHAVIOUR

 Enhancing Employee Engagement:

• Implementing strategies to boost morale and motivation.
• Creating a positive work environment that promotes job satisfaction.

 Leveraging Technology:
• Enhancing Communication using tools for better real-time collaboration.
• implementing automation and AI to improve efficiency and streamline
processes.

 Promoting Ethical Behavior:

• Establishing a strong ethical culture within the organization
• Implementing policies and practices that encourage ethical conduct.

 Sustainability and Social Responsibility:

• Focusing on sustainable business practices
• Engaging in corporate social responsibility (CSR) initiatives.

 Global Talent Management:

• Attracting and retaining top talent from around the world.
• Providing opportunities for international assignments and career developmen t.
Thankyou