ORGANISATIONAL BEHAVIOUR MBA, SEMESTER-L According to the new syllabus of ‘Savitribai Phule Pune University, Pune’ Dr. Anand B. Dadas Ph.D, MPhil, MBA, MPM, M.Com Me Director, Neville Wadia Institute of Management Studies and Research, Pune Prof. Ashish Krishna Vyas Ph, BEA), PDBM FR), MBS / MMS (HR & FIN) ‘Assistant Professor, 78S Za Insite of Bsess Admiscton, Comps Apa snd Reseach, Pune Prof. Lambodar Saka MBA CHR, Mktg & FM), MPA, PGDIM, 'GDHRD, BE Assistant Professor, JSPM's Kautiya Institute of Management and Research, Pune Books are Available for Online Purchase at: tppl.org.in a THAKUR PUBLICATION PVT. LTD., PUNE Lucknow © Meerut * Bengaluru * Hyderabad * Jaipur * Chennai * « Ahmedabad * Nagpur * Bhubaneswar « Jalandhar + Rohtak * Bhopal * Kerala * Kolkata *Organisational Behaviour Edition 2016 Revised Edition 2019 Copyright © an rights Reserved ‘This Book is solo subject to the condition tht it shall not, by way of tae or otherwise, be lent resold, hired out, oF ‘thervise circulated without the peblishers prior writen consent, in ay form of binding or cover, othe than that in which its published and without including a similar condition. This condition belgg imposed onthe subsequent puchasce and ‘wihoat limiting the rights under copyright reserved above, no pat ofthis publication may be reproduced, stored in ot ‘ranaittedin any frm or by any means electronic, mechanical, photocopytg, recording ot otherwise), without the pice "witen pemnission of both the copyright owner and the below meationed publisher ofthis bok. Published by : Thakur Publication Pvt. Ltd. C.TS. 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Os8238700, JALGAON 25, Prashant Monk House: 17 EDM Shopping Czas, Opp, SBI nga, alaoe-t2500) Ph. 257-S838590, 36866“Dedicated to my Father, Late Mr. Bhanudas Sokriba Dadas” ~Dr. Anand B. Dads “Dedicated to Shri Akkalkot Swami Samarth, my Father, Late Ado. Krishna Vyas ‘my Mother, Dr. Anuradha Vyas, my Wie, Bre. Mugdha Vyas ‘my Sons, Vedant and Mohanish” “Prof Ashish Krishna Vyas “Dedicated to my Wife, Laxmi Saha, Sons Minto Shelley & Sanket Shelley & one of the inspiring Teacher, Mr. Dolo Saha for their love, understanding and emotional support” » “Thank you & Thank God” = Prof. Lambodar SahaPreface ‘A major gol ofthis book of “Organisational Behaviour” isnot just to explain fundamental theories and concepts of Organisational Behaviour but to help students apply those theories and concepts to ther personal lives and wor lives. This book explains how to effectively manage behaviour in orgaiiations. Managing OB involves acquiring, developing, managing and applying the knowlege, skills and abilities of people ‘This book has been specifically writen for students of MBA, First Semester as per the new syllabus of Savitribai Phule Pune University. This book will help students to beter understand the relevance of managing ‘People and to integrate these concepts with knowledge gained in other core business courses. ‘The five units of this book have been designed to effectively preseat an overview of the challenges that ‘managers and employees face in today's competitive organisations. . ‘The discussion questions atthe end of units can be used as a basis for clas discussion as a change for teachers ‘o test students learning. A comprehensive university question papers has been prepared for both students and teachers to accompany this edition of OB. ‘We welcome feedback on the material presented here. We are grateful or the editorial assistance of those who climinated many errors and made the text more readable. We are looking forward for your suggestions and ‘valuable cooperation Please e-mail us at, [email protected] Website, wew.tpplorginAcknowledgement 1 take this opportunity to thank all hose who siood by my and insted in meth fut that T coud tien my knowledge and aac Pees Organizational Beharlour book 1 woud lik to thank nepal Udversity for opening the gies forme. Kt gave fete resources t realize ha tere no Timi he academic esearch : My sincere thanks to De. PC. Sejwakar and Dr. C. M. Chita for aking ot tine from thc bay scl to guide me for {book Dr B-V- Sangavinar has supported and encouraged meat every sage of his book, She was always generous enough to sand by meand even help mein dra alysis ao. ‘My beuaft thanks are for Dr. SN. Thwart who shared his teaching experience fr motivating me always for his projet and De ayant Josh who dig not hese in lending mea elpng hand by agrering wih my ideas and concept fo this book. Feo fp patate towarls Dr, Praell Pawar and Dr. Yogesh Uppadiya Presid, Federstion of Intemational Trainers & ‘Selazes and Nana! President of Arab Trainers leegue fo expressing their association and love fortis book aoe also ‘unto saps) our gatade towards ll iy Family members, mj wife Mrs. Jayshree Dadas, my kids Srushtl and Satyam for {heir kid cooperation and oppor. -Dr. Anand B. Dadas 1 am thank wo my Fates, Adv, Krishna Vyas who is pased way but would have liked ose this book and my mother, DE. ‘anucada Vyas for thir Blessings; My wife Mrs: Mugdha A. Vyas deserves to be complimented for her constant apd ‘oundilnal apport Textend my thanks to my Son, Vedant & Mohanish for ti olerance and patience to have allowed me to work snd nt ving time other while writing this book. 1 am thankful to my Gur, Shr. Akalkot Swann Samarth and Shr. Dada Josh, beloved Mentoe Dr. (Capt) C&M, Citale, poesmr Emesinus (UGC), former Dean tod HOD PUMBA, Dr. Subhash Bhave Dr. Anand Dadas, Director Neville Wain Management Collepe, Dr; Anand Jumle. Picipal SNDT Pune, Dr. Niia Zarare, Dr. Babasheb Shivale, Dr. Rajesh ‘Kashyap. and tiny more who constantly wused, mentored and guided me to become what am todhy- 1 shank to my Brother Mr, Prashant Vyas and his Family, my In-Laws, Mr. Prakash Mabajanl and Mrs Prabbavatl is. Vivek & Mrs. Kiran Malnjoni who constantly inspired me to pure tm academe pasts. Tanto extend my gratin towards my all Frends & Colleagues for encouraging me to wie a book. {st bu ot the eas, woul ike to thank lot to Thakur Publication Prt tan the whole tam, especially Mrs. Tritt ‘Slngh' Chowdhury (Associate Edie), Mr. Vikrant Verma (Ear) and Mrs. Sona Singh (Markoing Coordinator, for Facltating the work and providing an opportunity tobe pat of their organisation. -Prof. Ashish Krishna Vyas SESESVISPA Group of stat: Pune and te Directors of ISPM, Dr: RS. Joshi, Prof Madhukar Takale Prot. Vijay ‘Strant sod De, HD. Pal. Dirt who motivated net under this ask of weting a book tied “Organisational Behavioar” fo thei support and encouragement. 1 am personaly obtigd and thankful to Prot Dr.) $. Ranganathan, Dean (Management Accounting) Botho Universi, Botrvann, Souther Affce and Bx-Diector of Kautlya Inttoe of Managemeat and Research and Dr. K. Ramamerth, ‘Ponca of Coimbatore Iai of Managemeat snd Technology, Bhurabiar Univesity for thei excellent suport and guidance Jah book, My Friendo and Clleaguer in academice, who have encourage, guided, helped and even suggestions and ‘eae atc ms throughout This jurey deserve & very Spal benton an profound thanks wo all the Facey Members all he Non-Teaching sas, Tam extended my sincere dunks o al the Stden's who hae assisted me in thi tas. 1 am please to be assoclated with Thakur Publication Pvt. Lid. epeially for cir excllen suppor and help on parca. ‘sould ket Bank Me Mane) Kumar Thakr sod Dr. Saroj Kamar Thaker, vanaging Directors of Thakur Publication Pvt Tor de cnclloa suport and guidance, Lay take thes opporunes thanks my Uacle and my Inpising Teacher ‘Mr DoleSuha who made all happens and made itll worthwhile. 1s hoped that is book will be of interest and valve wo students and teachers of profesional nstnues, wivesty wd thse ‘devoted he case of dase Business Laws in Inst. -Prof. Lambodar Saha* Syllabus MBA 102: ORGANIZATIONAL BEHAVIOUR Unita 742) Fundamentals of OB: Evolution of Management thought, Five Functions of Management, Definition, scope 1nd importance of OB, Relationship between OB and the Individual, Evolution of OB, Models of OB. (Autocratc, Custodial, Supportive, Collegial & SOBC), Limitations of OB. Values, Attitudes and Emotions: Introduction, Values, Attitudes, Definition and Concept of Emotions, Emotional Intelligence - Fundamentals of Emotional Intelligence, The Emotional Competence Framework, Benefis of Emotional Intelligence , difference between EQ and IQ. Personality & Attitude: Definition Personality, Impertance of Personality in Performance, ‘The Myers-Briggs Type Indicator and The Big Five Personality Model, Johari Window , Transaction Analysis, Definition Attitude Importance of Atitude in an Organization, Right Attitude, Components of attitude, Relationship between Behavior and Atiude. Unit 2) Perception: Meaning and Concept of Perception, Factors influencing Perception, Selective Perception, Attribution Theory, Perceptual process, Social Perception (stereotyping and halo effect). Motivation: Deftaition & Concept of Motive & Motivation, The Content Theories of Motivation (Masiow's Need Hierarchy & Herzberg's Two Factor model Theory), The Process Theories (Vroom’s Expectancy Theory & Porter Lawler ‘model), Contemporary Theories- Equity Theory of Work Motivation Unita 2) Group and Team Dynamics: The Meaning of Group & Group behavior & Group Dynamics, Types of Groups, ‘The Five -Stage Model of Group Development Team Effectiveness & Team Building, Leadership: Introduction, Managers Vis Leaders. Overview of Leadership- Trails and Types, Theories of Leadership. Trait and Behavioral Theories, Unies 742) Contlict Management ~ Definition and Meaning, Sources of Conflict, Types of Confit, Conflict Managennent Approaches. Organizational Culture: Meaning and Nature of Organizaion Culture - Origin of Organisation Culture, Functions of Organization Culture, Types of Culture, Creating and Maintaining Organization Culture, Managing Cultural Diversity Unies (2) ‘Stress at workplace: Work Stressors ~ Prevention and Management of Stress ~ Balancing Work and Life, Workplace Spistuality. Organizational Change: Meaning, Definition & Nature of Organizational Change, ‘Types of Organizational change, Forces that acts as stimulants to change. Kurt Lewin's- Thee step model, How {0 overcome the i t© Change, Methods of Implementing Organizational Change, Developing a Learning OrganizationContents Unit-I Chapter-1: Fundamentals of OB 1, Management in 11, Meaning and Definition of Management 11 112 Name of Management n 113, Five Functions of Management 8 12° Evolution of Management Thought 14 and OB 1241, Classical Organisation Theory Sehool 14 12.14, Selenite Management: Conmibuion of, 13, W.Tayhor 121.2. Administave Management: Contribution 15 of Henry Fayed 1213. Bureauracy Coatibtion of Max Weber 16 122. ‘Behavioural Schoo! 1 1221. Hawthorne Studies 0 1222, Contitation of Chester Barnard i 123. Modem Approach 20 123.1, Management Science Sebo! 2» 1232, Systems Apmosch a 1233. Comingeney Aproch 2 1234, Soil Symem Approoch 2 1235. Deckon Making Approsch 2 13. Organisational Behaviour (OB) 23 13, Meaning and Definition of 2 Organisonal Behaviour 132 Natwe of Organisational Behaviour 24 133. Scope of Organisational Behaviour 24 134, Neat of Orgmisstional Behaviou Why 25, ‘Study Organisational Behavior? 135, Imporance of Organisations! Beheviour 26 13.6 Relationship between OB and he n Tnivial 1.37. Models of Orgsistional Behaviour 28 1374, Amoeratc Made 2% 1372.» Custodial Model * 1373. Supportive Model 2 1374 Callegiat Model » 1375, SOB-CModt 2» 138, Fundamental Concept of 8: 30 Foundaons of Organisational ‘Behaviour 139, Disciplines Consibung tothe Field of 31 ob 110, LevesofoB 2 B11, Determinants of Ogaisatonal 3 Behaviour 12.12, Challenges and Oppormiis for 4 ‘Organisational Behviour 13. Limftadoas of OB 4 14” Bere 36 Chapter-2: Values, Attitudes, Emotions & Personality 21. Values a 211, Inrodution 37 2 242, 213, 21a, 215. 216 22, 221. 222, 223, 224, 225, 23, 2a, 232. 233 234, 235, 236, 231. 24. 2a 242, 243, 2a 245; 246, 247, 2an 2472, 2473 2474, 25. 25, 252, 283, 254, 26. 261 262. 263, 264, 265, 2654. 2652, 2653, 266. 267. 27. 271 272, 273, (Characteristics of Vales Sours of Values Casefcation of Values “Type of Values Impotance of Values, Emotions Defirition and Concept of Emotions "Natu of Emetions Dimension of Emotions ‘Types of Emotions Deteminants of Emotions Ineligence ‘Developing Emotional Intligence atthe Wertplce Benefits of Emotional Intelligence Limitations of Emotional Intelligence Emotonal Competence Framework Difference between EQ and IQ Personality ‘Meatng and Definition of Personality [Natwe of Personality Determinants of Personality ‘Types of Personals ‘Majer Personality Attibuts Influencing (Orznisatinal Behaviour Impertance of Personality in Perfermance Persnalicy Tests -Myes Briggs Type Indicator (MET) Big Five Model Rorschch Ink Blot Test ‘Thematic Appreciation Test Johari Window ‘Concept of bari Window ‘Quadrans of Joba Window Benefits of Johari Window mations of fark Window ‘Tramsaclonal Analysis (TA) Intraiscton -Mesing and Definition of Transactional ‘Analysis [Natreof Transactional Analysis ‘Objectives of Transactional Analysis ‘Components of Transactional Analysis go Sates ‘Types of Tmssctions LifePesions ‘Benefits of Transactional Analysis Lnstations of Transactional Analysis ‘Attindes Meaning and Definition of Anitude (Characteraties of Atimdes Importance of Ande in an 37 3 3 39 0 41 4“ 2 2 6 2 8 “4 45 46 30 50 50 st 3 33 5s274, 275, 276 277, 278, 279, 4a. an 412, 4121. 4122, 413. ana ans. aie 417, 474. a7, 4173, 18) prea 4182, 419, Orgaisation ight Atte Components of Anitudes Soures of Aide “Types of Attitudes ietions of Atitdes Relationship between Behaviour and Atte Bxerelse Unita Chapter-3: Perception Perception “Meaning and Concep of Perception ae of Perception Conponens of Peepion Pnciptes of Perception Factor nlcncng Perception ‘Ateibution Theoey of Peeepon Percept Proves Percept Seley Seleton Recep Organ Perception Imporance of Perception “Managerial nd Bebo ‘Applicaions of Peepton Difereace between Prepon nd ‘tine Soca Perception Selective Prepon Steeorping Halo Ecc, Contant tac ‘Abt Bias Fist impression Inference Sel Falfiling Prophecy Exercise Chapter~ “Motivation “Meaning an Defnion of Motivation Concept of Move Charctersies of Mosives ‘Types of Motives [Nature of Motivation Elements of Mesivation ‘Process of Motivation “Types of Motivation (ContenuTraiinsl Theories of Motivation Motivation 2 n n n B " 8 S8Beesassacua essesegege 4191. Mectlland’s News Theory 100 4192. Alérfers ERG Theory Jot 4193. Equity Theory of Work Motivation 101 419A, Relaereoment Theory ia 41.10. Imortance of Motivation 03 4111, Managerial Applications of Motivation 104 ‘Theories 42, Exercise 10s Unit-0 Chapter-5: Group and Team Dynamics 51. Foundations of Group Behaviour 106 SLL. Mosning and Definition of Group 105, 512. Grup Behaviour 105, 513, Netueof Group 108 S14 Wh/ do People loin Groope? 108 S15. Typesot Groups 108 51.6. Five Stage Mode of Group 10 Development S17. Group Processes un S118 Theotes of Group Formation 12 SA8. Advantages of Working in Group 1B 5.110. Disdsantages of Working in Group 114 32. Graup Dynamics 1d 521. Mesning nd Definition of Group ne Dyramics 522, Natue of Group Dynamics m4 523. Imporunce of Growp Dynamics 524. Components of Group Dynamics us 52.5. Maragerial Implications of Group 16 Dynamics 33. Team a7 531. Meaning and Definition of Team ur 532 Natweof Team us 533. Neolof Team us 534. Typ of Team 19 535. Team Efeciveness 20 5351, Feaures offi Team Esenas for 120 Developing Elective Team $352, Facos Deemining Team Effectiveness 121 536. Importance of Teams m2 337. Issues in Managing Tans in 338 Differace between Team and Group 123 $4. Team Building a 541. Mewing and Definition of Team 4 Builting 542. Team Development: Different Stages in 124 ‘Team Building Proce 543, Guiclines for Team Building 14 S44, Advantages of Team Building Bs 545. Disadvantages of Tim Building 2s 35 Exercise 6 Chapter-6: Leaders! ‘Overview of Leadership, a Introduction “Managers vereus Leaders 1 Nate of Leaderbip 2s6.14, Need for Leadership G15. Types of Leaders and Leadership Styles 6151. Atocratic Ladenip Ste 6152. Pariipatve Leadership Style 6153. Free Rein Leadership Sple 64.6, Traits and Qualities of Effective Leaders 617. Functions of Leader 61.8. importance of Leadership 619. Theories of Leadership 62 Trait Theories, 621. noduetion 622. Stogil’s Tat Factors 623. Ghiselli's Personal Traits 624. Limitations of Trait Appreach 63. Behavioural Theories 631. Introduction 632. Managerial Grid 633. Liker's Four Systems of Leadership 634, Obi State University Studies 635. Michigan Studies G4. SituationalContingency Theories 641. Introduction 642, Fedler’s Model/Leadeship Effectiveness Model 643. Situational Leadership Model (SLM) 44, PathGoal Thay 645. Leadership Participation Modet 646. Tannenbaum and Schmidt's Situation Continuum 6S. Contemporary Theories 651. lnoduction 652. Transformational Leadership 653. Transecdonal Leadership 654. Charismatic Leadership 655. Visionary Leadership 65. Exercise Unit-IV Chapter-7: Conflict Management 74. Commit TLL. Meaning and Definition of Confct 712, Nature of Cote, 7113, Sources Bases of Conflict ‘1A, Typow Levels of Conlict, 7141, Individual Level Coniet, 7142, Group Level Confit ‘T1A3. Organisational Level Confict TAS. Confit Process 718. Effects of Conflict FAN Confer Management 771, Proctor Resolution of Conic. 7172, Coict Management Approaches 72. Bxereie Chapter-8: Organisational Culture 84. Organisattonal Culture S11, Meming and Definition of war 17 148 149 19 150 150 150 131 152 12 153 156 158 155 136 156 157 18 19 159 12. 813, Bia, ais. e186, re B18, sigh s182 Biss, B19. #191 192, 3110. 82, Orgaisational Culture [Natur of Organisational Coltare Origin of Organisation Culture Functons/Role of Organisational alae Elements of Organisational Culture cans Influencing Organisational Cale ‘Types of Calne (Creating and Maintaining Organisational Cattwe ‘Steps in Creating Organisational Cate Seg Ponte Olen Cae Sastning Orgaisaonal Curae ‘Managing Ctra Diversity ‘Step. Managing Cultural Diversity (Guidelines for Managing Cour Divenity CCitiesms of Organisational Cote Exerdse Unit-v 159 160 161 161 162 162 163 16. 166 16 166 161 167 168 169 Chapter-9: Stress at Workplace 94. ou 912, 9124. 9122, 9123, 5124, 913, 91a, sian 9142 945, 9151 9132 92, 924 922, 923, 924, 93. 934. 932, 933, 934, 94. Chapter-10: Organisational ‘tres at Workplace Mearng & Definition of Sess ‘Work Stesson/Causes of Suess Individual Stressors rages Balancing Work and Life : Work-Life Balance Ineodistion Opsioas of Work-Life Balance ‘Benefit of Work-Life Balance ‘aides for Improving Wort Lite ‘Workgac petty Concept of Workplace Spirituality Features of Spirital Organisation Reasns for the Growing Interest in Workplace Spray Coiticams of Workplace Spirmaity Bxerdse 170 170 170 10 m m m 13 174 m8 14 14 us 5, 16 176 176 m 18 me 18 cid 9 179 180 181 18 1810a. 10a 0s. 10.16, 10.7 10.18 10.19. 10.110. 102. 021. wo22. 10221, 10222. 10223. ro22a, 1023. 1024 1028. 10242. 1025, 1026. 03. Goals of Organisational Change “Types of Orgnisational Change Fores that Acts a Stimulant to Change Proce of Organisational Change Levels of Orgnistional Change “Methods of Implementing (Orgaistional Change Importance of Organisational Change Limiatios of Organisational Change ‘Change Management ‘Meaning and Debniton of Change ‘Management “Approaches to Managing Organisational Change ust Lown's ~The Step Model Seven Stage Model of ange otters Eight Step Plan fr Implementing Change Greiner s Si-Phase Process Leading the Change Process Facilitating Change Imervenion Strategies fr Facilitating Organisional Change Guidelines for Facitating Change Imponance of Change Management ‘Bares to Change Management Resistance to Change 189 11 191 193, 198 194 196 198 198 19 201 103.1. Mesning and Definition of Resistance to Change 1032. Levels of Resitance to Change 1033. How to Overeome Resistance 0 Changs? 10331. Dealing with Individual Resistance 10332. Dedling with Group Resistance 1034. Becfils of Resistance wo Change 104." Learning Organisation 1041. Meming and Definition of Leasing Organisation 1042, Nate of Leaming Organisation 1043, Bement of eaming Organisution 1044. Developing a Leaming Organisation 1045. Disiplines of Learning Organisation 1046, Bewefits of Leaing Organisation 104.7, Problems of Learing Organisations 105. saree Solved Paper 2014 Solved Paper 2015 Solved Paper 2016 Solved Paper 2017 Solved Paper 2018 Classification Model PaperFundamental of OB (Chapter 1) " Chapter 1 Fundamentals of OB ener eee ial tan 1.1.1. Meaning and Definition of Management ‘The term ‘management stands forthe act of planning, organising, dreing and controling the activites of Jnuman beings and physical resources wit the intention of accomplishing predefined objective. Being road in ature the word ais many contextual meanings. eis toked upon as factor of prshton a ‘las of persons’ asa proces anda an ‘exploiting set of people’ ffom the viewpoints of economis, soca, tnanagement practtiones ante unionists, respectively. ‘According to Louis Allen, "Management is what a manager does. ‘According to James D. Mooney and Allan C. Relley, “Management isthe art of directing and inspiring people”. According to Peter Drucker, “Management is « multipurpose organ that manages business, manages ‘manager and manages workers snd Work", According to Koontz and O'Donnel, “Management is the creation and maintenance of an intemsl environment in an enterprise where individuals, working in groups, car perform efficiently and effectively {toward the atainment of group goals. It isthe art of getting the work done through and with people informally organised groups” Ina nutshell itis portrayed as ‘an activity’ or ‘a process’ executed by “a group of people” dynamically engaged With the authorities to make decisions or policies. Simply, it can be stated that, management is the job of & ‘manager, who exhibits the art of managing the people and getting the things done withthe help of formally ‘organised groups of people. 1.1.2. Nature of Management ‘Nature of management canbe explained with the help of the following pois ‘Nature of Management ‘Cotas Poco ‘Managenct « Disioe ‘Management ar «Career tangent a= Sone swells a A ‘Goa reed Manageaest isa Human Aci Managemen SeeiesAutorty Managements Unive "Management eres Cordnton ‘Managemest is Dynamic ‘Masset is Pinay «Leap "aay ‘Manages is Deion Mang Manspenest is Professionquae i MBA Fist Sint (Organisational Beavou?) SPU 1) Continuous Process: Management is a never ending process. It continuously follows a series of steps like planning, organising, staffing, directing and controlling for effective utilisation of finanial and personnel frganisational resources, All these Functions are inter-dependent snd one function cannot operate without the presence of the other: Hence, tagemient isan unending process that follows a number Of steps s0 that the problems are identified and solved. 2) Management as i Dislpings Management may not fit well inthe context of « discipline tke ober nces but is as is gradually increasing amongst the practitioners of management. In recent een a s inceasing sit provides certified inforsaton and ‘cnowieds wy manageticn rectly snd also ams at dieovereg ne apects ofthe business Worl. 3) Management 38 3 Career: Masiageent on is own isan excelent carer option offering diverse growth Opportniies, Management also oes insights initeresng, stmlating and specialised areas Uke human ‘resources, keting, finan, supply ehaitminagement, tc. These ae al the upcoming challenging areas and lucrative career options. 4) Management as Sclence as well aga Arts Manaigeitent isa good combination of art as well as science. As it {San otonsed body bf Knowledge das various fs and wus, hence it canbe considered asa scence. ‘Management sls an at 9 3t BVGWE ‘lows processes which reques diferent st of sills by anager, ¥ 5) GoaL-Oriented: Every organ is 0 stn a set of pre-determined goals. The suecess ot aire ofthe management depend onthe extent which these goals have been achieved 6) Guidance: Management provides guidance and expisins the ways in which human and material resources can be utilised in the most eficient manner. Irstiggests techniques fr effective aid economic utilisation of scarce resources to achieve the objectives of a business enterprice. Its an art of getting things done by ‘achieving coordination amiong employees who eary-out specific and diverse business operations. 7) Management is a Human Activity: Management can be termed as a human activity and the functions of management cin only be performed by the organisational stall members. Thus, no artificial entity or ‘corporate body can perform managerial functions. Its an intangitle activity which can be felt but not seen ‘or touched, 8) Management Denotes Authority: Authority compels people to work and behave in a particular manner. ‘Authority is the prime base of management, ic; managerial process cannot function without authority. ‘Management gives the authority to the managers to guide, direc: and contol. This authority enables the ‘management to attain a higher position ia the hierarchy of any business organisation. 9) Management is Universal: Application of management is univesal, ie, it can be applied anywhere and everywhere, Every business activity, clubs, government offices, cxaritable and religious institutions, army, tc, come under the scope of management. 10) Management Engures Coordination: Coordination is important at each and every stage in ‘an ‘organisation. Coordination between every employee and betweer every department is cracial for smooth Ancona fe boss, Mere Aan Setree owns bs In nig degen jctives successfully. ¢ 11) Management is Dynamic: It is difficult for any business environment to remain constant for a long period of time. Hence, management also changes with every change in the environment of the busines. Management tools and techniques help in converting the thieats associated with environment into ‘opportunities. Management adapts itself according to the changing goals, requirements and challenges of the busines, 12) Management is Primarily a Leadership Activity: Management's essentially an art of getting things done by people. One ofthe main roles of a manager is to exercise leade-ship practice. Leadership isan important factor fr the success of an enterprise. It is the process of influencing people to willingly contribute towards achieving organisational objectives. Some of the qualities of good manager and leader are willpower, Knowledge, decisiveness, motivator, integrity, ec. A good leader must be inspiring and be able to guide the group of people towards maximising thelr potential.‘mens of 8 (Chap 1) ‘ n 13) Management ts Decision-Making: Decision-making if an niportas wetvity for any business manager ‘Decisions are based on the available facts and fightet 484 depend thé understanding and analysis of th ‘managers Various technical methods are used t9 determine the est decision for tho overll betterment of te organisation, For example, a finance manager i reponse fer faking deciiois related to activities ike organising fonds, preparing budgets, cont commral ie ya 14) Management is Profession: Manageinent i noah inkerent ability, itis profession. Managers ar not bom; thay ar made by prope ning and acting managerial si, AY management ia dace and body of knowledge, any qualified person can become a manager, 1.13. Five Functions of Management : ‘Each and every business endeavour has its own predetermined goals to gchieve. The realisation of those goals ‘ay. ot be posible witout an intended and incarporied ndnimo eft ofall the eniatonal members te flow te friction: of cena condang gency Fr exis fs flo hy team, one cannot win the game until and wales there aii aye unde he sprocae {uidance ofa Captain of the cam. The central coordinating agency in thi context fk NcAN-A-G-E-ME-N "T andthe approach of geting the things done ia known asthe “management process‘ Figce, management i 2 semplex process which includes many activities in parts Bac activig-sompributes towards the Atisinment ofthe organisational goals Individual ection aetvis)-perinpmed othe management process is ‘designated a functions of management” " : : press ‘ime-bound: manner. Management is: soci; races 44 achieving the goals of the ‘organisation by regulating its functions and jlo ane being cartied-out in a different componcats ty donal-level activites ke Procurement, marketing, production, finance, te. These dynamic eeivies ‘ae performed by the top, middle fd operative level managers. The main functions of inayat proces follows: 1) Planning: Planing is th deliberate effort to atl ie expected scome through & determined fure course of action. It involves visualisation of activites tht need fe done, the methods for ding them, ‘where they are to be done, what willbe the oucotbe and the methods to evaluate the outcomes. As per Henry Fayo, every management should visualise a plan that compriss of te desired result foreseing the line of action, methods to follow and stages to go rough taming 2) Organising: The second function of management is to prepare and organise. Organising involves division and re-division of Work into smaller duties, distributing the tasks among Coming Onpiting for ensuring proper functioning. By organising propery, the effectiveness of the organisation it enhanced, redundancy, ‘epetiton and duplication of the activities is aveided: thereby Pig sue reducing the functioning cost of the organisation. It is. the an responsibility of the management to organise the required Peng}: Fonction resources beforehand and then to follow the planned ectivides. 3) ‘Staffing: tis the proces of appointing poople for the postions formed bythe process of orgmiston. Stating is the proces ofreuting, deploying and retaining ruficlent and qualified caployecs or sas to create and ‘maintain a favourable working environment and thereby improving the organisational effectiveness. In large ‘companies, staffing process is cariedout by coordinating wth the human resource department. 44) Directing Direction is the key to achieve required goal. After thé orientation ofthe subordinates, the senior manager is accountable for directing and leading them to achieve enhanced job performance and 10 motivate them to work with passion, confidence and enthusiast, Directing motivates the employees (0 perform their responsibilities in realising the organisational goals. Wale planning, organising and stating tre the preliminary functions to the actual business aciides, direction adds spark wo the organization by ‘ringing the process into motion. designated work force and alloing authority to every position Ure qUalen [MB Fit Semester (Orgarstonal Behavior) SPPU '5) Controlling: Functions of « manager are not complete even when the above elements are in place. It is ‘very important for the manager to review and assess the organisational activities on a regular basis and take necessary steps for ensuring that the plans are being cartied-out in compliance with the predetermined path Controlling isa visualisation process that verifies thatthe tasks are performed as per expectations and checks for current nd future deviations. The control function helps the management in identifying the deviations if any, and makes significant changes inthe plans for realising the organsational goals, 4.2. EVOLUTION OF MANAGEMENT THOUGHT AND OB “The emergence of management thoughts and principles can be drawn out from pre-historic times. Since then, aman beings started living together in organised groups or in a society consisting of different groups. These efforts have helped them to organise their actions and carry-out their activities in an Cfficiont and productive mannet. Management principles have evolved with time and are in continuous ‘process of evolution. Management principles are flexible in nature and its application depends widely on the nature of the situation, Management principles have a broad base and help in making process. They are famous. and have a worldwide acceptance. As management principles are linked to human behaviour, they keep on. constantly changing and evolving. The evidence of such management practises and theories has been found. ‘Since the year 1940, the concept of organisational behaviour has emerged asa separate area of study. The term. ‘OB or Organisational Behaviour refers tothe study of relationships among human beings which take place within organisations or workplaces, It snot easy to seperate organisational behaviour from management theory Since they both are very closely integrated, Therefore, ll these aspecis have tobe studied and conclusions have to be drawn inorder to further the knowledge about organisational development. Relationships among human beings already existed since a long time back. However, itis a comparatively new area of knowledge which deals with such relationships. Before the commencement of Industrial Revolution, individuals used to work in small groups and the work relationships among them were very simple. Those individvals or workers had negligible job satisfaction because of the unhealthy working environment and less availability of resources, But there was an eventual rise in the leve.of job satisfaction due to the rise in the ‘activities ofthe industries, which resulted in an increase in the level ef goods supply, a well as improvement in the working environment and pay structure “The concept of organisational behaviour developed through four key phases. This made the study of OB easier, ‘The four key phases are mentioned below 1) The intal/early OB theories. (classical organisation and scientific management) 2). The neo-classical theories of organisation. (Human relationsbehavioural movement) 3) The modem OB theories 1.2.1. Classical Organisation Theory School ‘The clasical school i considered as the systematic and formalised way of miiging work and hnman ‘esourcer. This isthe major strength of classical school which becom more adaptable in nature with time. One tain drawback ofthis approach is that, t mes it overlooks the diferences between people and situation. “These classical approsches ae gin mature and donot apply well wit the changing situations. ‘Various management theorists have contributed towards framing of principles for establishing and managing organisations. The classical theory is the base or an underiying pritcple in the field of management thought. ‘The three major schools of thought of classical theory and their contrbutors are: 1). Scientific Management by Frederick W. Taylor, 2) Administrative Theory by Henry Fayol, and 3) Bureaucratic Management by Max Weber.‘Rindemenals of 08 (Chapter!) 15 1.2.1.1. Scientific Management: Contribution of F, W. Taylor EW, Taylor as a scientist made several researches regarding how people can be effectively utilised. He observed during his research that the main reason of ineffectiveness aad wastage in factories was that both ‘Workers and managers were not aware about scientific methods. Hence, he developed a theory known as “Scientific Management’, in which he propagated that the efficiency can be enhanced by analysis, enquiry and ‘measurement. Following principles ae given by Taylor: 1), Replacing rule of thumb with science 2), Harmony in group action 3), Co-operation between management and workers 4) Maximum output in place of restricted output 5) Development of workers through scientific selection and training 1.2.1.2, Administrative Management: Contribution of Henry Fayol ‘One of the major contributors to administrative approach of managemen: is Henry Fayol. He is considered as the ‘Father of Modern Management’. Fayol was a French industrialist and a mining engineer. He had worked at all the positions of the mining company before becoming the Managing Director ofthe Compaay. He portrayed his ideas based on real-world experiences in his book, ‘Administration Industalle at Generali’ in French Janguage printed in 1916. It was translated in English as “General and Incustral Management” in 1929 and was later on published in U.S.A. in the year 1949, ‘Henry Fayol expleined the importance of managerial efficiency in an organisation and focussed on the ‘management point of view in dealing the company issues whereas Taylor focused on the workers point of view. All the industrial activities were divided by Fayol into six groups, ie. technical, commercial, financial, ‘security, accounting and managerial. These activites are applicable to organisations whether big or small in ‘iz, He entirely concentrated on te sixth activity, Le, managing, ‘Fayol’s Principles of Management ‘The 14 principles of management given by Fayol are as follows: 1) Division of Labour: ‘Division of labour is the specialisation of various tasks so as to increase the overall elficiency of individual employees. Fayol highlighted that the work of any (ype, i.e, technical or ‘managerial must be divided and assigned among number of employees, Ths division makes the task much easier and improves the efficiency of individuals. It also enhances the speed and accuracy of employees. Specialised efforts help the company to achieve its predetermined objectives. 2) Parity of Authority and Responsibility: ‘Authority’ is the legal power inherent in a particular job, A. ‘superior in any organisation is entitled to give instructions and orders to his subordinates, take important ‘decisions, plan for optimum utilisation of available resources, provide guidance to subordinates and control the behavioural pattems of subordinates. Whil,‘responsibikty” i the outcome of authority. Respoosiility involves duties like performing various functions in order to attain the company’s objectives in an effective 3) Discipline: ‘Discipline’ means orderly behaviour of an individual towards abiding the rules and regulations ‘of an organisation. Therefore, itis essential forthe smooth functioning ofthe business, Discipline is not just 1 role played by the workers but also one of the roles of management. In order to follow and maintain discipline, organisation must have a good supervisor at all levels, The rules should be clearly defined and in ‘case of any indisciplin, imposed penalties shouldbe fair 4) Unity of Command: According to Fayol, a subordinate is accountable to only one superior. Every ‘employee in an organisation is lable 1 receive orders from only one superior. Ifa person gets orders from ‘more than one person then it may ereate confusion and conflict. '5) Unity of Direction: As per this ute, every member in an organisation should coordinate and direct hishher efforts to atain common objectives. “Unity of direction’ strives to ensure “unity of action, coordination of strength and focusing of efforts". In consideration ofthe principle, each group activity should have one plan supervised by one head following the samo objective. This ensures focused efforts, unity of action and coordination.16 qUsic MBA Fist Semester (Organ Behavou) SPU 6) Subordination of Individual’ Interest to General Interest: Tae interest of the organisation should be [Kept atthe highest priority over te interest of individuals. Every employee has certain individual interests ‘which motivates the employee to work for the organistion. But the individual interest should not supersede the organisational interests under any. citcumstances. According to Fayol, the management should make tfforts to unite the interest in general (both employer and employee). But in case of conflict, interest of individuals should be sacrificed for dhe larger interest. 17) Pair Remuneration to Employees: Every employee in an organisation should receive a fair and reasonable ‘remuneration. The wage stractare ofthe employees should be based on the job assigned, cost of living and fverage wage rate followed in the industry and the financial situation of the company. In general the basic pay is fixed as per the work done but the allowances are ible to change with the altering cos of living. 8) Centralisation and Decentralisation: The concentration of decision-making authority in the hands of top ‘management leads to ‘centralsution’. Jf the authority is shared with the lower level management then it leads to ‘decentralisation’. Fayol suggests that there should be a proper balance between centralisation and decentralisation of authorities. In small organisations, centalisaion of authority exists as the number of, activities undertaken is less compared to large organsations.- Whereas, in large organisations, the level of decentralisation is high. (9). Onder: The principle of ‘otde’ refers to the arrangement of people and things a the right place. Tere should be ‘fixed place for everything inthe organisation and everything shod be in ts own place in the organisation. In the same Way, socal order involves Fight ftson atthe right place. hese orders demand detailed knowledge of the requirements and'resoarces in the organisation and to maintin a proper balance between them. If the ‘nganisation isa large organisation then its dificult task to maintain the required balance. 10) Sealar Chain: Every organisation has superiors and subordinates The formal line of authority from highest to lowest ranks is defined as scalar chain. All managers ae linked in a chain from highest to lowest level positions. Bvery manager is superior to @ manager working below him but he isa subordinate to his own, ‘superior: Hence, this isa step-wise chain of authority. According to Fayol, every organisation should have a eman tanour ‘ouput Ca Conte » Sa eons Fesdack Figure 12: Pde and Feedback in an Open System Management responsibilities and the nature of organisation is characterised by constant change and cooperation. This ever-changing and integrated nature of an organisation is emphasised in the systems approach to management I can be said thatthe systems theory helps the managers in developing plan of actions and in predicting their immediate and long-term effects. The systems theory helps the managers to strike a balance between the various goals of organisational departments and overall goss ofthe organisation, 1.233, Contingency Approach Contingency approach can also be termed as situational approach. This theory is of the view that there cannot ‘one specific action or response for different situations faced by the organisation. The best action for every situation is the one that meets the requirements of internal and extemal environment. The developers of contingency approach are of the view that systems approach is not effective in describing the relationship between the organisation and its external environment. Contingency theorists have atempted 10 meet this limitation of the systems approach by proposing an appropriate ation. that should be taken in response of an event oceurring inthe environment. The basic theory behind the evolution of contingency approach states that ‘management effectiveness is contingent or dependent upon the interction that occurs between the specific organisational situations and behaviour of management in dealing with ‘he situation, ‘This approach suggests that managers should manage a particular situation according to the changing circumstances surrounding them. The famous phrase, one size does not fit all, goes well with the above ‘explained concept. The contingency approach sas invented by the Feople from different walks of life like managers, researchers, consultants, ett. after their attempts of appying other management theories were unsuccessful. They discovered that the real life situations and the concepts developed by major schools of management are not compatible with each other. This lack of applicability of management theories led t0 the development of contingency approach, Si gation wes oaleate ie aan as asec apes oe pees pechepeapinetetn tor penetrate erp eyered Easier estes ots em pea ims npatcneen tea paae roeae pe ee emer men op mee eared enero eed ‘Scenario may not necessarily work under other or all given scenarios. It is the mané s responsibilit ia ie aon awl be sit or warn waa ante pnt to fen oe pace he sed ante cnet them aos nd Foseaen il nh su ae cn emt ga, Mana hon eet ‘howe gcd mae fe a ye ie cgi, For eam ere ln space sls ea eee “Sul i en wo oh chal an woas a anataFundamentns of 8 (Chapter 1) 1.2.34. Social System Approach ‘Social system approach was founded by a sociologist named, Vilfredo Pareto, Social systems approach is an extension of human relations approach. Pareto’s concept was further developed by Chester Barnard, who ‘combined the social systems approach with the human relations approach. This concept considers an ‘organisation as a system based on cultures, where people from differen: backgrounds work with cooperation and harmony Understanding the behavioural patterns of different people working in an organisation helps achieving a ‘cooperative system which further aids in ataining the organisational objectives set by the management. This approach is based on the theory of cooperation which explains that an iedividual employee tries to satisty the basic biological, physical and social needs by cooperating with other employees. This concept of iner- ‘relationships is termed as “formal organisation”, ‘This system of formal organisation is different from the authority based management concept. Formal ‘organisation is a system of consciously coordinated actions working towards achieving mutual organisational ‘objectives. According to this approach, people who are a part of a formal organisation work together in ‘cooperation, share rewards and also help each other in achieving the overall organisational goals. Social systems approach is formal in nature. Itshares a lot of similarity wit the behavioural approach which is against the concept of an “economic man”. It views an organisation as a social organism which is liable to the pressures and struggles of the cultural ‘environment. It studies and analyses the impact of social behaviour of ax individual and behaviour ofa group ‘on management concepts. 1.235. Decision-Making Approach ‘The decision-making theory concentrates on the managerial decision-making process in an organisation. Tt ‘considers it as a central management task of prime importance. All the Functions of management are based on sound decision-making, Herbert A. Simon, a leading supporter o° decision theory school, considers “managing” and “decision-making” as similar concepts, The features of decision theory ae as follows: 1) Management is basically decision-making. 2) All the members of an organisation are decision-makers and problem solvers. 3) Organisation is divided into different decision centres. The level and significance of a member in an ‘organisation can be defined, based on the significance of decisions taken by them. 4) Organisational effectiveness is inluenced by the quality of decisions. 5) Factors affecting decision-making process should be studied and analysed. FRM ta et 1.3.1. Meaning and Definition of Organisational Behaviour Organisational behaviour i the field of study devoted to understanding the behaviour of individuals and groups inn organisation and applying this knowledge in the best possible manner. This study explains the relationship between people and organisation in terms of the individval, group, organisation and the entire system as & ‘whole. The goal is to accomplish human, organisational and social objectives by building beter relationships inside the organisation. Organisational behaviour can be defined asthe arrangement, working and performance of organisations, as well asthe conduct of individuals and groups inthe organisation. In short, assessment of ‘people within an organisational set-up is termed as organisational behavior. I includes examining, forecasting land managing the human behaviour. Organisational bshaviour guides the management regarding how to achieve the organisational goals in an effective manner by giving relevant importance to human factors. According to Barnard, organisation involves ‘meaningful communication among people. This states that since human factor is the most inseparable part of ‘the organisation, hence, it should be given proper importance. Tsus, organisational behaviour helps ‘management in evaluating snd shaping human behaviour in the best possible manne.24 Unie MA Fs Semester (Organisational Bebaviou?) SPPU According to Fred Luthans, “Orgensational behaviour isthe understnding: predicting and controlling human. ‘behaviour at work” According to Callahan, “Organisational behaviour is subset of management activities concerned with understanding, predicting and influencing individual behaviour in orgaisational seting ‘According to’Aldag and Brief, “Organisational behaviour is a branch of social sciences that seeks to build theories that can be applied fo predicting, understanding, and controlling behaviour in work organisations”. According to Stephen Robbins, “Organisational behaviour isa field of study that investigates the impact tht Individuals, groups and structure have on behaviour in organisations, for the purpose of applying such Knowledge towards improving an organisation's effectiveness" 1.3.2. _ Nature of Organisational Behaviour Nature of organisational behaviour is as follows: 1) Fundamental Part of Management: Organisational behaviour isa scientific study of how people bebave in an organisation and helps in improving the focus of management towards the employees and in seting provisions for them, 2) Multiisciplinary Approach: Organisational behaviour has psychological foundation and_seversl ‘behavioural and social sciences disciplnaries such as psychology, sociology and anthropology significantly affect its functioning. The different concepts taken from these dsciplinares include leaening, perception, ‘motivation, attitude, etc. 3) Normative Science: Organisational behaviour is considered to be a normative science because it helps in applying the results of different studies in working of the organisation in such a way that i is compatible ‘with the society. Hence, individual and social acceptance is aso a key factor in the working and decision- ‘making of an organisation. 4) Science and Art: Organisational behaviour is considered asa science as well as an art. Selence, because it involves uilisation of scientific methods and art, because it deals with the behaviour of individual. 5) Humanistic and Optimistic Approach: Organisational behaviou: teaches managers to apply humanistic approach towards the employees. Tt emphasises on the fact that itis very important to meet the need of employees and motivate them. I also incucates a postive Work apyroach by stressing on the inborn qualities like being independent, innovative, predictive and capable of giving postive input othe organisation, 6 Focussed towards Organisational Objectives: Organisational behaviour helpe to combine both ‘organisational and individual objectives in such a way that both car be achieved atthe same time. 7) Total System Approach: Certain factors such as psychological sructure, imerpersonal orientation, group influence, and social & personal factors are responsible for complexity of individual's behavioue. Thus, ‘otganisstonal behaviour uses system approach to understand and find solution for tis complex individual ‘behaviour. 1.33. Scope of Organisational Behaviour ‘ope of organisational behaviour is as follows 1), Skill Development: For entering and surviving in the new-age, organisation requires certain set of skills, i.e work-related skills and generic skills such as problen-solving and communication skills Organisational behaviour deals directly with the generic skills. kids related to organisational behaviour are gaining momentum in the current work scenario, For example, CIOs (Chief Information Officers) today \work hand-in-hand with information technology professionals so that they can get a beter insight of the business, communicate effectively with colleagues and interact with other departments in & better manner Soft skis lke leadership, business knowledge and communication have started playing a very crucial role inthe overall running ofthe business. 2) Personal Growth through Insight into Human Behaviour: As per Robert P. Vecchio, people study ‘organisational behaviour to attain selfaccomplishment that one ges While learning about the behaviour and sittude of others. Ths ultimately results in improved self-knowledge and self-insight. For example, when ple study the factors which dive ether pope hey also cone to now the facto which encourageRandel of OB (Chapter 1). 2s 3) Improvement of Organisational and Individual Effectiveness: The study of orgunisetional behaviour provides information that can be used to solve organisational issues. It also improves organisational eifectiveness, ic. the potential ofan organisation tobe efficient ani to meet the requirements ofthe partes involved. Organisational behaviour improves organisational effectiveness by revealing factors sich as employee motivation, communication hurdles and personality factors that enhance or obstruct effective performance. Organisational effectiveness is understood as the extent to which an organisation attains its als under finite amount of funds and resources, without puting excessive burden on its employees, ‘According to Hannan and Freeman, “Organisational effectiveness is the degree of congruence between ‘organisational goals and observable outcomes’ Alongwith organisational effectiveness, organisational behaviour also provides approaches and ‘competencies that improve effectiveness of a person. A person with knowledge of conflict resolution, interpersonal communication and teamwork would prove to be more efficient forthe organisation, 4) Sharpening and Refining of Common Sense: Gaining knowledge and information about organisational ‘behaviour is crucial for managers as it teaches them how to deal wth their subordinates which cannot be taught through any book. Common sense without the knowledge of organisational behaviour is not enough to manage workforce. Knowledge of organisational behaviour sharpens and widens the sphere of common sense, It decreases the time one might need to attain important behaioura knowledge and skills Common sense tells us that rewarding employees on the basis of performance is an effective way to ‘motivate them for beter performance. But the study of organisitional behaviour teaches that rewards should be given seldom and not everyday. It also teaches that the kind of reward given to different employees should be modified as per their personalities and priorties. For example, some people prefer Tou appraisals while others might prefer appreciation based on quaity of outcome. 1.3.4, Need of Organisational Behaviour/ Why Study Organisational Behaviour? Organisational behaviour is an interesting field which helps managers 10 effectively manage the human resources, and thus achieving the organisational objectives efficiently. Following points desribe the reasons for studying organisational behaviout: 1), Understanding of Self and Others: Organisational behaviour helo individuals to understand themselves and others clearly, and thus improves interpersonal relations, Understanding attitude, perception, leadership, ttansactional analysis and conflict greatly helps individuals in shaping thee personalities and understanding others in a better manner. Organisational behaviour helps to understand human behaviour in every possible ‘manner and can be studied at the following levels: ') Individual Behaviour: The science of human psychology deals with the study of how and why an individual behaves in a specific manner. Human behaviour is influenced by various psychological, social and cultural factors. Organisational behaviour combines all these factors to study individual ‘behaviour in an organisation. {i Inter-personal Behaviour: Human beings have @ strong need to socialise and develop interpersonal relations. Behavioural sciences study these interpersonal relationships inside an organisation, They provide & better understanding of self and others and improve interpersonal relations toa great extent. To understand inerpersonal relations one needs to study attitude, perception ole analysis, ransactional analysis, et. Group Behaviour: Hawthorne studies suggest that people behave in a different way as an individual ‘than When in a group. When in @ group, aa individual's behaviour is influenced by the group norms, "Thus, organisational behaviour emphasises on stadying group dynamics. It asists in understanding the process a8 well as reason of group formation, and its impact on individual, group and management team. Group dynamics can be used by the management for improved communication, morale building and efficient leadership. 2) Motivation of Human Resources: A manager's task is 10 get work done by others, and a successful manager is one who can effectively motivate his workers achieve the goals of organisation Organisational behaviour helps the managers in understanding the requirements ofthe workers in a better ‘manner and thus, motivates them towards better performance. For example, managers can appreciate the ‘work of employees to boost their morale by giving incentives or some other kind of benefits.26(Usiet) [MBA Fas Semester (Orguisiona Bebaviou? SPPU 3) Enhancement of Quality and Productivity: Organisational behaviour. guides managers to use various techniques such as quality management, process re-engineering, ec. to increase the participation of employees. “Thus, organisstonal behaviour helps in improving the quality of operations and employee productivity. 4) Effective Communication: Any type of communication whether verbal or non-verbal is very essential in improving interpersonal relations. in an organisation and achieving organisational. effectiveness. Organisational behaviour plays an important role in improving communication. However, communication ‘ean be made effective by analysing the factors that affect communicaion. 5). Bifective Organisational Climate: According to the behavioural science, formition of organisational climate «enables efficient organisational working rather than simply enhancing tke physiological conditions or improving ‘stisfaction level of employees. Suitable working conditions, sufieient compensation and improved tools forthe job ae considered a8 minor steps in the direction of ereting a ealthy organisational climate. 6) Good Human Relations: Organisational behaviour can be helpful in maintaining healthy relations between the employees and management, Dissatisfaction among employees lads to a tensed work environment. An temployee can be slow in work due to any reason, not just due to rejection in promotion or poor work environment. Similarly, if & union calls for strike, the feason might not be a demand for higher wages, leaves, higher bonus, etc. The employee or union dissatisfaction car be duc to unhealthy relation between cemployees, union and management. The reason behind tensed relations between management and temployees at many times is purely psychological. In such cases, organisational behaviour helps the management in determining the reasons behind poor industrial relations in the organisation and formulates suitable measures to handle them. 17) Introduction of Change in Organisation: At some point of time. every organisation needs to undergo change because change is compulsory. Numerous forces such a technological, social, political and ‘environmental factors are responsible forthe change. Employees who are directly affected by the change ‘often resist it. This problem should be handled by using the behevioural science and educating the ‘employees about the positive aspects ofthe change, 1.3.5. “Importance of Organisational Behaviour Importance of studying organisational behaviour is as follows: 1) Helps in Understanding Human Behaviour: Human beings interac: differently and this interaction cin be understood withthe help of organisational behaviour. Hence, organisational behaviour is studied at various level sper the organisational needs, i, individual lve, interpersonal evel, group level and intergroup level 2) Assists in Controlling and Directing Behaviour: Once the manager has understood human behaviour, his focus should be on controling and directing the behaviour at all levels of interaction, thereby helping the ‘organisation in achieving is goals 3) Explains Application of Power and Sanetion: Managers can use power and sanction to control and direct the behaviour oftheir employees. Organisational beheviout teaches Low to use power and sanction in order to attain the goals of both the employee and the organisation atthe same time. 4) Helps in Understanding Leadership Concepts: Organisational betaviou help the managers to view the theory of leadership ina new perspective. It identifies maliple leadership styles and helps the manager in