Chapter One
Chapter One
Organizational behavior is the field of study that draws on theory, methods, and
principles from various disciplines to learn about individual perceptions, values,
learning capacities, and actions while working in groups and within the total
organization; analyzing the external environment's effect on the organization and
its human resources, missions, objectives, and strategies. Therefore, managers
need to develop diagnostic skills and be trained to identify conditions
symptomatic of a problem requiring further attention. The problems to watch for
include declining profits, declining quantity or quality of work, increases in
absenteeism or tardiness, and negative employee attitudes. Each of these
problems is an issue of organizational behavior.
The study of OB helps to understand the organization and people in a better way.
OB is important it helps to develop a friendly relationship between organization
and employees creating a proper working environment in an organization.
Studying OB provides a better understanding of the organization structure and
organization culture as well which further supports organizational behavior
management.
It is the one of the most important reasons for studying Organizational Behavior.
Organizational behavior: improving performance and commitment in the
workplace. Organizational behavior and human decision processes are to some
extent related to each other. Knowledge of Organizational Behavior research is
very much important for the management students who are going to have a
career as a successful manager. If all the Organizational Behavior theories are
studied properly then it helps to bring organizational effectiveness.
1. Individual Level
2. Group Level
The group level includes any groups within an organization. Groups can range in
size from a couple people working together, to a large group with dozens or
hundreds of members. As we just discussed, individuals can affect a group and a
group can affect an organization. At the group level of analysis, organizational
behavior involves the study of group dynamics, intra- and intergroup conflict,
leadership, power, norms, interpersonal communication, networks, and roles.
OB studies the impact of social and psychological group behavior factors upon the
behavior and performance of groups at the group level. Organization consists of
group, teams that work together in full co-operation and co-ordination of each
other. OB at group level focuses upon group interaction among members. It is
highly concerned with social psychology theories working in a group as it studies.
Group dynamics: Factor that stimulates the group such as role, status, norms,
size, composition etc.
Group performance: Various task and assignment to be performed in group.
Leadership: Ability to influence the group family.
Management of power and politics, conflicts and stress in a team.
3. Organizational Level
Organization behavior is the behavioral science. It has studied the behavior of an
organization as a whole to analyze how the organizational structure designs
technology influence to the organizational effectiveness. It tries to focus the
relationship between organization and environmental factor that directly or
indirectly affect organization.
Every field of social science has a philosophical foundation of basic concepts that
guides its development. Organizational behavior is based on the basic concept of
human relations which is a noteworthy social approach towards the
establishment of inter-personal relationship between superiors and subordinates.
Organizational behavior deals with a set of fundamental concepts revolving
around the nature of the people and organization. These concepts of
organizational behavior are as follows:
1. The Nature of People
With regard to people, there are four basic assumptions: individual differences, a
whole person, caused behavior (motivation) and value of the person (human
dignity).
a) Individual Differences
People have much in common but each person in the world is also individually
different from psychology. From the day of birth, each person is unique and
individual experiences after birth make people even more different. So,
management can get the subordinates motivated by treating them individually
and differently. Some are motivated by money, but some other by status and any
other. Hence, overall motivation plan is needed to deal with subordinates
individually. Therefore, individual differences mean that management can get the
greatest motivation among employees by treating them differently.
b) A Whole Person
Some managers think that they have employed a person just for his labor, skills or
brain. So, they are concerned with his labor of work only but he has to employ a
whole person rather than certain separate characteristics. A person should be
accepted as a whole person. That means when an employee comes to the
workplace as a complete person, he/she has his/her background, sentiments,
emotions, feelings, etc. which cannot be separated from the skills they are using
on the job. Skill does not exist apart from background or knowledge. Home life is
not totally separable from work life and emotional conditions are not totally
separable from work life and emotional conditions are not separable from
physical conditions. Hence, OB assumes that a person a whole person and
focuses on developing him/her in terms of growth and fulfillment.
c) Caused Behavior (Motivation)
We know that behavior has certain causes. These may related to a person’s
needs, and/or the consequences that result from acts. In case of needs, all normal
human behavior and his/her course of future actions, both are caused by a
person’s need structure. Motivation is essential for the operation of organization.
No matter how much machinery and equipment an organization has, these things
cannot be put to use until they are released and guided by people who have been
motivated. The management can create a suitable environment in the
organization, conductive to the fulfillment of individual needs within the overall
structure.
d) Value of the Person (Human Dignity)
Human dignity appeals for fair treatment to people. This concept tells that people
should be treated differently as compared to other resources in the organization.
It calls for self-respect and the value of people. It confirms that people are to be
treated differently from other factors of production because they are of a higher
order in the universe. The concept of human dignity rejects the old idea of using
employee as economic tool. Therefore, treatment of the working staffs as a
respectable human being, appreciation of their skills and recognition of their
personality are very important basis of human relations
With regard to organizations, the key assumptions are that they are social
systems and that they are formed on the basis of mutual interest.
a) Mutual Interest
Organization theory tells us about the mutuality of interest between individuals
and organization. mutual interest is represented by the statement “Organizations
need people, and people also need organizations”. organizations as a means to
help them reach their goals while at the same time, organizations need people to
help reach organizational objectives. There is a clear give-and-take relationship
between people and organizations. If mutuality is lacking, it makes no sense to try
to assemble a group and develop co-operation, Mutual interest provides a super-
ordinate goal that unites the variety of needs that people bring to organizations.
So, the management should try to co-ordinate the common goals and to motivate
individual in a nice manner
b) Social Systems
Organizations are social systems, consequently activities there in are governed by
social laws as well as psychological laws. In other words, each organization is a
social group having small number of groups. As people have needs, these
organizations also have their needs, status and role. The existence of a social
system implies that the organizational environment is one of dynamic change,
rather than a static set of relations.. The idea of a social system provides a
framework for analyzing organizational behavior issues. It helps to make
organizational behavior problems understandable and manageable.
1. Psychology.
2. Sociology.
3. Social Psychology.
4. Economics.
5. Anthropology.
6. Political Sciences.
Psychology
Psychology deals with studying human behavior that seeks to explain and
sometimes change the behavior of humans and other animals. Psychologists are
primarily interested in predicting the behavior of individuals to a great extent by
observing the dynamics of personal factors.
Those who have contributed and continued to add to the knowledge of OB are
teaching theorists, personality theorists, counseling psychologists and primary,
industrial and organizational psychologists.
Sociology
Sociology is the systematic study of social systems. It deals with human
interaction and communication. They are the key influencing factors among
people in social settings. Sociological concepts, theories, models, and techniques
help significantly to understand better the group dynamics, organizational culture,
formal organization theory and structure, corporate technology, bureaucracy,
communications, power, conflict, and intergroup behavior.
It consists of two or more persons of different status with various roles playing a
part in a pattern that is sustained by a physical and cultural base. Therefore,
organizations are viewed by sociologies as consists of a variety of people with
different roles, status, and degrees of authority.
Social Psychology
It has been defined as the scientific investigation of how the thoughts, feelings,
and behavior of individuals are influenced by the actual, imagined or implied the
presence of others. It deals with how people are affected by other individuals
who are physically present or who are imagined to be present or even whose
presence is implied.
In reality, some forms of sociology are closely related to social psychology.
Among them, the most important topics relevant to the organizational behavior
field are behavioral change, attitude change, communication, group process, and
group decision making.
Anthropology
The main aim of anthropology is to acquire a better understanding of the
relationship between the human being and the environment. Adaptations to
surroundings constitute culture. The manner in which people view their
surroundings is a part of the culture.
Political Science
Contributions of political scientists are significant to the understanding of
behavior in organizations. Political scientists study the behavior of individuals and
groups within a political environment. They contribute to understanding the
dynamics of power centers, structuring of conflict and conflict resolution tactics,
allocation of power and how people manipulate power for individual self-interest.
The knowledge of political science can be utilized in the study the behavior of
employees, executives at micro as well as macro level.
Economics
Economics contributes to organizational behavior to a great extent in designing
the organizational behavior Transaction cost economics influence the
organization and its structure.
This transaction cost economics examines the extent to which the organization
structure and size of an organization varies in response to attempts to avoid
market failures through minimizing production and transaction costs within the
constraints of human and environmental factors.
So we can assume that there are various types of disciplines that involve
organizational behavior. They, directly and indirectly, influence the overall
activities of OB.
a) S – R Model (Stimulus⟶Response)
This is the first and oldest form of behavior. S – R process where ‘S’ stands for
stimulus and ‘R’ stands for response. The process of human behavior may thus be
regarded as stimulus-response process. The teacher is affected by student’s
behavior and in turn affects their behavior. This takes place through interaction
between/among them, and is subject to the environment in which they interact.
Thus, individual behavior is not a self-induced phenomenon, but is affected by a
larger system e.g., group, family and the society within which one functions.
This view point is much more comprehensive and realistic than traditional
viewpoint of input output system.
This model of behavior has significant departure from earlier models for behavior
which have consider only overt aspects.
This view point is similar to behavioral model and presented by Kolasa. In this
model he has performed human behavior in the form of inputs, processes and
outputs.
Figure: Individual Behavior as Input-Output System
Inputs:
Environment stimuli Outcomes
Process
a.Covert responses
a. Smelling a. Selecting information
(Attitudes, motivations
b. Hearing b. Organizing information
and feelings)
C. Feeling c. Interpreting
b. Overt responses
d.Seeing information
(Behaviors)
e. Testing
1. Inputs: The inputs for individual behavior are shown in above figure. it
incorporates environmental stimuli and the internal stimulus of the person
acquired through sensation. Internal stimuli can be in the form of feeling, hearing,
seeing, smelling and testing.
2. Process (Organism): The inputs received in above forms are processed through
organism. Process can be in the form of selecting, organizing and interpreting
information received through inputs.
Mental processes
Mental processes refer to our ability to take in information and transform it, store
it, recover it, and put it to work.
Mental processes are all the things that the human mind can do naturally.
Common mental processes include memory, emotion, perception, imagination,
thinking and reasoning. Since the human mind is constantly active, mental
processes are continuously relevant and affecting or in taking events from daily
life.
Variables in mental process
Major variables in mental process are as follows. They affect the individual
behavior of the person.
1.Beliefs
A belief is an idea that a person holds as being true. A person can base a belief
upon certainties (e.g. mathematical principles), probabilities or matters of faith. It
is a pattern of meanings of a thing and the totality of the individual's cognition
about the things, A potential belief sits with the person until they accept it as
truth, and adopt it as part of their individual belief system.
Each person evaluates and seeks sound reasons or evidence for these potential
beliefs in their own way. Once a person accepts a belief as a truth they are willing
to defend, it can be said to form part of their belief system.
A person's belief has a critical impact upon motivation in two ways. First of all,
people must believe that they are capable of performing the behaviors that the
organization expects of them. Secondly, people must believe that engaging in the
behaviors desired by the organization will have positive consequences for them
personally. Each of us take action based upon our beliefs about ourselves and the
world around us.
2.Attitude
Attitudes are the mental dispositions people have towards others and the current
circumstances before making decisions that result in behavior. People primarily
form their attitudes from underlying values and beliefs.
However, factors which may not have been internalized as beliefs and values can
still influence a person’s attitudes at the point of decision-making. Typical
influences include the desire to please, political correctness, convenience, peer
pressure, and psychological stressors.
Components of an Attitude
Attitudes are evaluations that people make about objects, ideas, events, or other
people. Attitudes can include up to three components: emotional, cognitive and
behavioral. Example: Jane believes that smoking is unhealthy, feels disgusted
when people smoke around her, and avoids being in situations where people
smoke. "With positive attitude, people find solution in every problem but with
negative attitude people find problem in every solution. This is the single most
difference between positive and negative attitude."
Emotional: the feelings, sentiments, moods, and emotions about some person,
idea, event, or object.
job satisfaction,
organizational commitment.
1. Jab Satisfaction:
2. Job Involvement:
It is the degree to which a person identifies with his or her job actively
participates in it and considers his or her performance importance to self worth. If
employees are highly involved with their job, the chances for absenteeism and
turnover will be low.
3. Organizational Commitment:
Functions of Attitudes
3.Values
value denotes the degree of importance of something or action, with the aim of
determining what actions are best to do or what way is best to live or to describe
the significance of different actions. everyone of us has a varieties of value system
which guides our action and behavior. Values generally identify a person's
ethical/moral structure on which the concept of good or bad and right or wrong is
based. When behavior occurs, it is likely to be in line
Features of Values
Family is a great source of values. A child learns his first value from his
family.
Friends & peers: Friends and peers play a vital role in achieving values.
Community or society: As a part of society, a person learns values from
society or different groups of society.
School: As a learner, school and teachers also play a very important role in
introducing values.
Media: Media such as – Print media, Electronic media also play the role of
increasing values in the mind of people.
Relatives: Relative also helps to create values in the minds of people.
Organization: Different organizations and institutions also play a vital role
in creating value.
Religion.
History.
Books.
Others.
In summary, Values help to guide our behavior. It decides what we think as for
right, wrong, good,.Values are more or less permanent in nature. They represent
a single belief that, guides actions and judgment across objects and situations.
They derived from social and cultural mores.
Types of Values
These refer to desirable end-states of existence, the goals a person would like to
achieve during his or her lifetime. They include happiness, self-respect,
recognition, inner harmony, leading a prosperous life, and professional
excellence.
2.Instrumental value.
These include being honest, sincere, ethical, and being ambitious. These values
are more focused on personality traits and character.
Functions of values
Individual and organizations are goal oriented. values provide goals or ends for
the members to aim for. It helps to select certain goal.
Values provide for stabilities and uniformities in group interaction. They hold the
society together because they are shared in common. Some sociologists argue
that shared values form the basis for social unity or social solidarity.
Since they share the same values with others, the members of a society are likely
to see others as “people like themselves “. They will, therefore, have a sense of
belonging to a social group. They will feel a part of the wider society.
4.Bringing legitimacy
Values bring legitimacy to the rules that govern specific activities. The rules are
accepted as rules and followed mainly because they embody the values that most
people accept. The Americans for example, believe that the capitalist organisation
is the best one because it allows people to seek success in life.
Values help to bring about some kind of adjustment between different sets of
rules. The people seek the same kinds of ends or goals in different fields of their
life. Hence it is possible for them to modify the rules to help the pursuit of this
end.
4.Needs
Concept
A need is something that is necessary for an organism to live a healthy life. Needs
are distinguished from wants. In the case of a need, a deficiency causes a clear
adverse outcome: a dysfunction or death. Needs are created whenever there is a
physiological or psychological imbalance. For example, a need exists when cells in
the body are deprived of food and water.
A need of a person signifies his/her deficiency. Human life is full of needs. Since a
need is a deficiency, which creates tension within the people. A few definitions of
human need is given below.
Kolasa "A need is a lack or deficit of something within the system or organism,"
An unsatisfied need creates tension that stimulates drives within the individual.
These drives generate search behavior to find particular goals that, if attained, will
satisfy the need and lead to the reduction of tension
Types of Needs
These needs can be categorized into two groups primary and secondary needs
1. Primary Needs:
Primary needs are basic needs that are based upon biological demands, such as
the need for oxygen, food, shelter and water. They are the things that people
require to sustain themselves. Needs of this type are instinctive (natural) and
physiologically based.
2. Secondary Needs:
They are the requirements based more in psychology. They are learned from the
environment and culture in which the person lives, The secondary needs are
linked to the desire for pleasure and fulfillment of the human being: Examples
include the needs for achievement, autonomy, power, order, affiliation, and
understanding.
Functions of Needs
Needs have certain roles in every individual's life. Our learning, perception,
decisions also affected by our needs. Every individual prioritizes their needs
differently. According to T. Robbins five types of human needs and their functions
are:.
5. Motives
Concept
A motive is a person's reason for choosing one behavior from among several
choices. It explains why people or animals initiate, continue or terminate a certain
behavior at a particular time. Motives are derived from needs in that most
behaviors are undertaken to satisfy one more needs For example, an individual
may decide to have lunch to satisfy a need for food. he/she might choose to go to
Lumbini Cake Shop for food because it is fast and convenient.
"A motive is a factor that determines a person's choice of one course of behavior
from among several possibilities."
Drives are action-oriented and provide an emerging thrust (driving force) toward
goal accomplishment. They are at the very heart of motivational process. The
examples of the needs for food and water are translated into the hunger and
thrust drives, and need for friends become a drive for affiliation.
Human motives can be classified for the simplicity purpose, grouped under three
broad heads.
1. Primary Motives:
2. General Motives:
A separate classification for general motive is not always given. A motive must be
unlearned but not physiologically based. An understanding of these general
motives is important to the study of human behavior-especially in organizations.
They are more relevant to OB than the primary motives. Some of the examples of
them are: (a) the curiosity, manipulation, and activity motives (b) love or affection
drive,
3. Secondary Motives:
Whereas the general drives seem relatively more important than the primary
ones to the study of human behavior in organizations, the secondary drives are
unquestionably the most important. They are closely tied to the learning
concepts. A motive must be learned in order to be included in the secondary
classification. Some of the more important ones are power, achievement, and
affiliation. In addition, especially in reference to OB, security and status are also
important secondary motives.
Functions of Motives
1. Energize a Person: Motives energizes (gives the fuel) the behavior of the
person.
2. Gives Birth to Activity: To satisfy the motives the person starts to do something.
That means, motives arouses the activity.
3. Releases Energy: As the person starts the activity s/he starts to spend the
energy. In other words, motives are the source of releasing energy.
6. Behavior
Concept
Behavior is the way in which one acts or conducts oneself, especially towards
others. Behavior can be regarded as any action of an organism that changes its
relationship to its environment. Behavior provides outputs from the organism
Human behavior can be observed, recorded and studied.
S.P. Robbins Human behavior includes anything a person does that can be
observed some way."
Types of Behavior
Overt behavior is an observable act of a person. It is obvious. You can see it and
measure it at some point. Examples of this are eating, jogging, writing, dancing,
walking, reading, studying, singing, talking, speaking, cooking, crying, laughing etc.
Whatever overt behavior it is, it must be observable . It is a visible type of behavior
that can occur outside of human beings.
Covert behavior is the exact opposite of the previous type. Covert behaviors have
something to do with thoughts. A person may display desirable acts such as
praising someone’s success but feel bitter inside. Insecurities are a perfect
example of covert behavior. It includes internal psychological activities and
processes of an individual. They can't be seen openly or observed directly by
merely looking that person. It demands the use of special techniques or
instruments. Some of examples of covert behavior are: feeling, thinking, dreaming,
heart beat, pulse rate, digestion, blood-pressure, hunger, etc.
3. Genetically Inherited behavior
Inherited behaviors are behaviors that are passed down through genetically
process as a gift. It includes all behaviors that are transformed from parents to
their child. They are hard to change. Examples of them are: intelligence,
aggressiveness etc.
5. Formal Behavior:
6. Informal Behavior.
On the other hand, informal behavior does not follow any given rules. They are
free in nature, not guided by any person or group. They are aimed at achieving
informal/personal goal of an individual. Examples of them are: Joking with friends,
fighting, childish behaviors and abnormal behaviors, etc.
7.Conscious behavior
Unconscious behaviors are acts that run automatically without your mind
controlling them. You might not aware of your response to a frightening situation.
You hate cockroaches. They make you scream when they crawl on your skin. It is
your automatic response. You don’t even think about it. Thus, the scream is
unconscious behavior.
If employees' needs, feelings and expectations are not satisfied, they may show
negative behavior towards organization. To get the job done through proper
employee behavior, the management should know, why do people behave in a
particular way? . What makes the satisfied employees? Relationship between
needs, motives and behavior? etc.
7. Emotions
Concept
1. Biological Arousal:
It is a physical change such as increased heart rate, breathing, sweating, etc. but
not all biological arousal is emotional e.g., climbing a steep flight of stairs. may
increase heart rate or breathing but it is not an emotion.
associated with thoughts, feelings, behavioral responses. They are the process of
associating meaning with an emotion. Thought creates emotion.
3. Behavioral Expressions:
Emotions are expressed both verbally through words and nonverbally through
facial expressions, voices, gestures, body postures, and movements. We are
constantly expressing emotions when interacting with others. These are called
behavioral expression., An emotion can at once be a response to a situation (e.g.,
fear is a response to a threat), have motivating properties (e.g., anger can
motivate to act aggressively),
Emotion has important part in our life. It helps us to protect us, build social
relationship, relate with others. Emotion also helps effectively to express feeling
and actions, communicate effectively and lively,
Functions of Emotions
Emotions prepare our bodies for immediate action, People need to adjust
themselves according to available environment. That becomes possible because
our emotions enable us to prepare (to behave),otherwise, we will be failed .When
we are afraid, our bodies shut down temporarily unneeded digestive processes,
resulting in saliva reduction (a dry mouth); blood flows disproportionately to the
lower half of the body; the visual field expands; and air is breathed in, all
preparing the body to flee. Emotions initiate a system of components that
includes subjective experience, expressive behaviors, physiological reactions, all
for the purposes of specific actions.
2. Shaping future Behavior:
Every day we interact with other people as per official and personal needs. We
require smooth and purposive behavior for healthy relations. So understanding
our emotions, and emotions of other enables us to sympathize with others.
The Relationship between Emotion and Behavior Emotion influences our behavior
while dealing with others. So, if we have better understanding and knowledge of
emotions, we can improve our ability to explain and predict the selection process
in organizations, decision making, motivation, leadership interpersonal conflict,
and deviant (unusual) workplace behaviors. People who know their emotions and
are good at reading others' emotions may be more effective in their jobs in the
organization.
Concept
The term cognitive dissonance is used to describe the mental discomfort that
results from holding two conflicting beliefs, values, or attitudes. It is an
uncomfortable feeling caused by holding two contradictory (different) ideas. The
theory of cognitive dissonance tries to reduce dissonance (disagreement) by
changing their attitudes, beliefs, and behaviors, or. But this is not always possible
to get in real life situations due to various factors available in the work
environment.
In the late 1950s, Leon Festinger proposed the theory of "Cognitive Dissonance".
This theory tried to explain the linkage between attitudes and behavior.
(ii) or that smoking does not kill them, something else will.
In short, dissonance theory leads to the conclusion that humans are rationalizing
and not always rational beings. According to S.P. Robbins "It can help to predict
the propensity (degree) to engage in attitude and behavioral change". For
example, if individuals are required by the demands of their jobs to say or do
things that contradict their personal attitude, they will tend to modify their
attitude. People do so in order to make their attitude compatible with the
cognition of what they have said or done. In addition, the greater the dissonance
the greater will be the pressure to reduce it and vice-versa.
To reduce the dissonance, person should try to change his belief, actions and
perceptions.
There are a lot of challenges and opportunities today for managers to use Of
concepts of OB. Managers are facing varieties of behavioral issues and challenges
in their organizations. fast changing employee expectations; declining loyalty
toward working organizations; increasing number of women, old aged employees,
and minorities among others are some important changes in work places
(recently seen)
1. Globalization
Globalization is the process by which people and goods move easily across
borders. It is the process of interaction and integration among people, companies,
and governments worldwide.
2.Workforce diversity (Heterogeneity)
6.Empowerment of employees
8.Use of technology