Organizational Behavior

Organizational behavior (OB) is "the study of human behavior in organizational settings, the interface between
human behavior and the organization, and the organization itself."
OB can be divided into three levels.
The study of:
1. Individuals in organizations (micro-level),
2. Work groups (meso-level),
3. How organizations behave (macro-level).

DEFINITION

OB is the field of study that investigates the impact that individuals, groups & structures have on
behavior within the organization for the purpose of applying such knowledge towards improving an
organization’ seffectiveness.

EXAMPLE: If I want to understand my boss’s personality, I would be examining the individual level of
analysis. If we want to know about how my manager’s personality affects my team, I am examining things at
the team level. But, if I want to understand how my organization’s culture affects my boss’s behavior, I would
be interested in the organizational level of analysis.

NATURE AND SCOPE (FEATURES) OF ORGANIZATIONAL BEHAVIOUR

Organizational behavior has emerged as a separate field of study. The nature it has acquired is identified as
follows:

1. A Distinct field of Study

OB has emerged as a distinct field of study. It contains a body of research, theory and application associated
with a growing concern for people in the workplace.

2. An Interdisciplinary Approach
Organizational behavior is essentially an interdisciplinary approach to study human behavior at work. It tries to
integrate the relevant knowledge drawn from related disciplines like psychology, sociology, political science
and anthropology to make them applicable for studying and analyzing organizational behavior.

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 behavior. The basic line of difference between pure science and O.B.
is that while the former concentrates of fundamental researches, the latter concentrates on applied researches.

4. Cause and Effect Relationship:

Human behavior is generally taken in terms of cause and effect relationship and not in philosophical terms. It
helps in predicting the behavior of individuals. It provides generalizations that managers can use to anticipate
the effect of certain activities on human behavior.

5. Three Levels of Analysis:

Organizational behavior encompasses the study of three levels of analysis namely individual behavior, inter-
individual behavior and the behavior of organizations themselves. The field of organizational behavior
embraces all these levels as being complementary to each other.

5. A Humanistic and Optimistic Approach

Organizational Behavior 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.

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 behavioral scientists to analyze human behavior in view of his/her socio-
psychological framework. Man's socio-psychological framework makes man a complex one and the systems
approach tries to study his/her complexity and find solution to it.

Scope of Organizational Behavior

The three internal organizational elements viz., people, technology and structure and the fourth element, i.e.,
external social systems may be taken as the scope of O.B.

1. People
The people constitute the internal social system of the organization. They consist of individuals and groups.
Groups may be large or small, formal or informal, official or unofficial. They are dynamic. They form, change
and disband. Human organization changes every day. Today, it is not the same as it was yesterday. It may
change further in the coming days. People are living, thinking and feeling being who created the organization
and try to achieve the objectives and goals. Thus, organizations exist to serve the people and not the people
exist to serve the organization.

2. Structure
Structure defines the sole relationship of people in an organization. Different people in an organization are
given different roles and they have certain relationship with others. It leads to division of labor so that people
can perform their duties or work to accomplish the organizational goal. Thus, everybody cannot be an
accountant or a clerk. Work is complex and different duties are to be performed by different people. Some may
be accountant; others may be managers, clerks, peons or workers. All are so related to each other to accomplish
the goal in a co-ordinated manner. Thus, structure relates to power and duties. One has the authority and others
have a duty to obey him.
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.

4. Social System
Social system provides external environment which the organization operates. A single organization cannot
exist also. It is a part of the whole. One organization cannot give everything and therefore, there are many other
organizations. All these organizations influence each other. It influences the attitudes of people, their working
conditions and above all provides competition for resources and power.
O.B. is the study of human behavior at work in organizations. Accordingly, the scope of O.B. includes the study
of individuals, groups and organization/structure. Let us briefly reflect on what aspects each of these three
cover.

5. Individuals
Organizations are the associations of individuals. Individuals differ in many respects. The study of individuals,
therefore, includes aspects such as personality, perception, attitudes, values, job satisfaction, learning and
motivation.

6. Groups of Individuals
Groups include aspects such as group dynamics, group conflicts, communication, leadership, power and politics
and the like.

Contributing disciplines to the Organizational Behavior field

Organizational behavior is a behavioral science that is built upon contributions from a number of behavioral
disciplines. The dominant areas are psychology, sociology, social psychology, anthropology, and political
science
1.       PSYCHOLOGY

Psychology is the science that seeks to measure, explain, and sometimes change the behavior of humans and
other animals. Psychologists involve themselves with studying and attempting to understand individual
behavior.
Psychology is the science that seeks to measure, explain, and sometimes change the behavior of humans and
other animals. It may be; the mental and behavior characteristic of an individual or group;

RELATONSHIP WITH OB

If one wants to improve the behavior of an individual or group we have to look into the psychological needs of
an individual and group. So the knowledge of psychology can really help in improving and modifying the
behavior of individual and group. If the psychological needs are fulfilled
,it gives satisfaction to people and also give peace of mind, which can improve the ability of an organization

Early industrial and organizational psychologists concerned themselves with problems of fatigue, boredom, and
other factors relevant to working conditions that could impede efficient work performance. More recently, their
contributions have been expanded to include learning, perception, personality, training, leadership effectiveness,
needs and motivational forces, job satisfaction, decision making processes, performance appraisals, attitude
measurement, employee selection techniques, work design and job stress.

2.       SOCIOLOGY

Sociologists have made their greatest contribution to organizational behavior through their study of group
behavior in organizations. Some of the areas within organizational behavior that have received valuable input
from sociologist are group dynamics, design of work teams, organizational culture, formal organization theory
and structure, organizational technology, communications, power conflict, and inter group behavior.

3.       SOCIAL PSYCHOLOGY

Social psychology is an area within psychology, but it blends concepts from psychology and sociology. It
concentrates on the influence of people on one another. One of the major areas receiving considerable
investigation from social psychologist have been behavioral change. In addition, social psychologists are
making significant contributions in the areas of measuring, understanding, and changing attitudes;
communication patterns; the ways in which group activities can satisfy individual needs; and group decision
making processes.

4.       ANTHROPOLOGY

Anthropology is the study or societies to learn about human beings and their activities. Anthropologists’ work
on cultures and environments, for instance, has helped us understand differences in fundamental values,
attitudes, and behavior between people in different countries and within different organizations. Much of our
current understanding of organizational culture, organizational environments, and differences between national
cultures is the result of the work of anthropologist or researchers using their methodologies.

5.       POLITICAL SCIENCE

Although frequently overlooked, the contributions of political scientists are significant to the understanding of
behavior in organizations. Political science studies the behavior of individuals and groups within a political
environment. Specific topics of concern include structuring of conflict, allocation of power and how people
manipulate power for individual self-interest.

MODELS OF ORGANIZATIONAL BEHAVIOUR

Models are the techniques which help us to understand complex things and ideas in a clear manner. Models are
frameworks or possible explanations why do people behave as they do at work. There are so many models as
many are organizations. Varying results across the organizations are substantially caused by differences in the
models of organizational behavior. All the models of organizational behavior are broadly classified into four
types: autocratic, custodial, supportive and collegial. We discuss these four models beginning with the
autocratic. O.B. is the study of human behavior in organizations, the interface between human behavior and the
organization and the organization itself. The following figures shows, this interrelationship clearly.
Feedback

S-O-B-C Model of human behavior.

Model of Organizational Behavior

1. The Autocratic Model

 The basis of this model is power with a managerial orientation of authority.

 The employees in turn are oriented towards obedience and dependence on the boss.
 The employee need that is met is subsistence. The performance result is minimal.
 In case of an autocratic model, the managerial orientation is doctorial.
 The managers exercise their commands over employees.
 The managers give orders and the employees have to obey the orders.
 Thus, the employees’ orientation towards the managers/bosses is obedience.
 Under autocratic conditions, employees give higher performance either because of their achievement
drive or their personal liking to the boss or because of some other factor.

Evidences such as the industrial civilization of the United States and organizational crises do suggest that the
autocratic model produced results. However, its principal weakness is its high human cost. The combination of
emerging knowledge about the needs of the employees and ever changing societal values and norms suggested
managers to adopt alternative and better ways to manage people at work. This gave genesis to the second type
of models or organizational behavior.
2. The Custodial Model

 The basis of this model is economic resources with a managerial orientation of money.
 The employees in turn are oriented towards security and benefits and dependence on the
organization.
 The employee need that is met is security. The performance result is passive cooperation.
 While studying the employees, the managers realized and recognized that although the employees
managed under autocratic style do not talk back to their boss they certainly think back about the system.
Such employees filled with frustration and aggression vents them on their co-workers, families and
neighbors.
 This made the managers think how to develop better employee satisfaction and security. It was realized
that this can be done by dispelling employees' insecurities, frustration and aggression.
 This called for introduction of welfare programmers to satisfy security needs of employees.
Provision for an onsite day-care centre for quality child care is an example of welfare programme meant
for employees.
 Welfare programmes lead to employee dependence on the organization.

Stating more accurately, employees having dependence on organization may not afford to quit even
there seem greener pastures around. The welfare programmes for employees started by the Indira
Gandhi National Open University (IGNOU), New Delhi are worth citing in this context, IGNOU, in the
beginning provided its employees facilities like house-lease facility, subsidized transport facility, day-
time child care centre in the campus, etc. These made employees dependent on IGNOU which, in turn,
became custodian of its employees.

Although the custodian approach brings security and satisfaction, it suffers from certain flaws also.
Employees produce anywhere near their capacities. They are also not motivated to increase their
capacities of which they are capable. Though the employees are satisfied, still they do not feel motivated
or fulfilled in their work they do. This is in conformity with the research finding that the happy
employees are not necessarily most productive employees. Consequently managers and researchers
started to address yet another question. "Is there better approach/way to manage people?" The quest for a
better way provided a foundation for evolvement to the supportive type of model of organizational
behavior.

3. The Supportive Model

 The basis of this model is leadership with a managerial orientation of support. The employees in
turn are oriented towards job performance and participation. The employee need that is met is
status and recognition. The performance result is awakened drives.

 The supportive model is founded on leadership, not on money or authority.

 In fact, it is the managerial leadership style that provides an atmosphere to help employees grow and
accomplish their tasks successfully.
 The managers recognize that the workers are not by nature passive and disinterested to organizational
needs, but they are made so by an inappropriate leadership style.
 The managers believe that given due and appropriate changes, the workers become ready to share
responsibility, develop a drive to contribute their mite and improve them. Thus, under supportive
approach, the management's orientation is to support the employee's job performance for meeting both
organizational and individual goals.
  However, the supportive model of organizational behavior is found more useful and effective in
developed nations and less effective in developing nations like ours because of employee's more
awakening in the former and less one in the latter nations.

4. The Collegial Model

 The collegial model is an extension of the supportive model.

 As the literal meaning of the work 'college' means a group of persons having the common purpose, the
collegial model relates to a team work/concept.
 The basic foundation of the collegial model lies on management's building a feeling of partnership
with employee. Under collegial approach, employees feel needed and useful. They consider managers
as joint contributors to organizational success rather than as bosses.
 Its greatest benefit is that the employee becomes self-discipline.
 Feeling responsible backed by self-discipline creates a feeling of team work just like what the members
of a football team feel. The research studies report that compared to traditional management model, the
more open, participative, collegial managerial approach produced improved results in situations where it
is appropriate.
 Although there are four separate models, almost no organization operates exclusively in one. There will
usually be a predominate one, with one or more areas overlapping in the other models.

The first model, autocratic, had its roots in the industrial revolution. The managers of this type of organization
operate out of McGregor's Theory X. The next three models begin to build on McGregor's Theory Y. They have
each evolved over a period of time and there is no one "best" model. The collegial model should not be thought
as the last or best model, but the beginning of a new model or paradigm.

Interpretation of Different Models: Various conclusions may be drawn from the study of different models as
follows:
(i) As soon as the understanding of human behavior develops or social conditions change, the model is bound to
change. No one model is best for all times.
(ii) Models or organizational behavior are related to hierarchy of human needs. As society advances on the need
hierarchy, new models are developed to serve the higher order needs that are paramount at that time.
(iii) Present tendency towards more democratic models of organizational behavior will continue to develop for
long run.
(iv) Different models will remain in use though new model predominates as most appropriate for general use at
any given time as task conditions differ from time to time and organization to organization.

Four Models of Organizational Behaviour

 A-B-Cs of Orgnizational Behaviour Modification

Contingencies of Reinforcement
 Challenges and Opportunities for Organizational Behaviour

1. Responding to Globalization

2. Managing Workforce Diversity

3. Improving Quality and Productivity

4. Responding to the Labor Shortage

5. Improving Customer Service

6. Improving People Skills

7. Empowering People

8. Coping with “Temporariness”

9. Stimulation Innovation and Change

10. Helping Employees Balance Work/Life Conflicts

11. Improving Ethical Behavior

Responding to Globalization

With mostly market driven business, whenever the demand exists irrespective of distance, location, climatic
conditions, the business operations are expanded to gain their market share and remain top ranked. Making
maximum use of mass communication, internet, faster transportation, products and services are spreading across
nations. Example of such globalization is "more than 95% of Nokia cell phones are being sold outside of their
home country Finland".

 A manager has to manage a diversified workforce that is likely to have very different needs, aspirations
and attitudes from the ones that they are used to manage in their home country.
  Understanding culture of local people in order to adapt appropriate management style for the success
the operations. It is important for the manager to show tolerance to sensitivity to various individual in
the workforce.

Improving People's Skills

The employees and executives are really in need of a boost up to be equipped with the required skills relevant to
the technological changes, structural changes, environmental changes which are accelerated at a fast pace. In
absence of the fastback possession, the targeted goals can't be achieved in time.

Improving Quality and Productivity

Quality is a parameter which makes a product or service best or worst for the customers and users. It is a
measure of expectation. A student expects the pen; she/he just bought, to write. The failure of the pen to write
will express the failure of the product to meet the customer's expectation.

Empowering People

The main concern is to delegate power and responsibility to lower level workforce and assigning more freedom
to make choices about their schedules, operations, procedures and method of solving their work related
problems. The implementation of empowerment concept brings around reshaping of relationship between the
manager and the employees where the manager works as a coach, advisor, sponsor, facilitator and a guide. The
manager must learn how to give up control and employees must learn how to take responsibility for their work
and make better decision. This in many cases brings change in leadership style.

Coping with Temporariness

The product life cycles are slimming up and thus the methods of operations are improving and fashions are
changing very fast. This rapid changing era brings a temporariness feel among the organization's environment.
The very long periods of stability is lost in the recent years due to competitiveness in providing better
experience. Actual jobs that workers perform are in a permanent state of flux so they need to upgrade
their knowledge and skill sets.

Stimulating Innovation and Change

Today's successful organizations must foster innovation and be proficient in the art of change, else they will
become extinct in due course of time and vanish from business. Flexibility needs to be maintained at all times
along with continually improving their quality and handle constant competition. The managers need to stimulate
employee's creativity and tolerance for change.

Improving Ethical Behaviour

The complexity of business operations is forcing workforce to face ethical dilemmas, where they are required to
define right and wrong conduct in order to complete their assigned activities. The ground rules governing the
constituents of good ethical behavior has not been clearly defined. Blurring out of differentiation between right
things from wrong behavior becomes a dent in an organization.The managers must evolve code of ethics to
guide employees through ethical dilemmas. Organizing workshops, seminars, training programs help improving
behavior of employees. It is the duty of every individual to keep the climate within an organization healthy in
terms of ethics and principals and maintain minimal degree of ambiguity