Conceptual Framework in Understanding Organizational Behaviour (OB)

Definition

Organizational Behaviour (OB) is the systematic study of human behaviour within

organizations, focusing on understanding, predicting, and influencing actions to improve
organizational effectiveness.

Definition by Robbins: “OB is a field of study that investigates the impact that individuals,
groups, and structure have on behaviour within organizations, for the purpose of applying
such knowledge toward improving an organization’s effectiveness.”

OB combines disciplines like psychology, sociology, anthropology, and management to

understand the dynamics within organizations.

Importance of Conceptual Frameworks

Conceptual frameworks in OB provide structured approaches to understanding:

1. Individual behaviours, such as motivation and personality.

2. Group dynamics, including teamwork and leadership.
3. Organizational processes, such as culture and communication.

Example: Fred Luthans emphasizes the role of positive psychological capital (PsyCap),
which includes hope, resilience, and optimism, in enhancing employee performance. For
instance, in an IT firm undergoing a merger, fostering PsyCap among employees helped
mitigate stress and improve collaboration.

2. Evolution of Organizational Behaviour (OB)

Historical Background

The field of OB has evolved through significant milestones:

1. Scientific Management Era (1900s):

o Focused on efficiency and productivity.
o Frederick Taylor’s principles of scientific management emphasized time
studies and task specialization.
2. Hawthorne Studies (1920s-1930s):
o Conducted at Western Electric Company’s Hawthorne plant.
o Highlighted the importance of social factors and employee well-being on
productivity.
o Insight: Human relations and group dynamics significantly impact
performance.
3. Human Relations Movement (1930s-1950s):
o Championed by Elton Mayo, focusing on motivation, leadership, and group
behaviour.
 Maslow’s Hierarchy of Needs emerged during this period, offering a deeper
o
understanding of employee motivations.
4. Behavioural Science Approach (1950s-1970s):
o Integration of psychology, sociology, and anthropology.
o Focused on individual behaviour, decision-making, and organizational
structure.
5. Contemporary OB (1980s-Present):
o Emphasis on evidence-based practices (as highlighted by Fred Luthans).
o Topics like organizational culture, emotional intelligence, diversity, and
innovation dominate modern OB.

Contributors

 Frederick Taylor: Advocated for scientific task design.

 Elton Mayo: Emphasized human relations and group impact.
 Douglas McGregor: Introduced Theory X and Theory Y.
 Fred Luthans: Developed Positive Organizational Behaviour (POB) and
Psychological Capital (PsyCap).

Modern Developments

 Increased focus on globalized workforce challenges.

 Application of technology in OB research and practice.
 Greater emphasis on sustainability and corporate social responsibility.

Example: Google’s use of behavioural data to design effective teams aligns with
contemporary OB’s data-driven approach.

3. Disciplines Contributing to the Development of OB

Psychology

Psychology contributes to OB by focusing on individual attributes such as personality,

perception, and motivation. Key contributions include:

 The Big Five Personality Traits: Extroversion, agreeableness, conscientiousness,

neuroticism, and openness to experience.
 Motivation theories, such as Maslow’s Hierarchy of Needs and Herzberg’s Two-
Factor Theory.

Sociology

Sociology examines group dynamics, organizational culture, and communication networks.

Contributions include:

 Understanding the role of norms and status in group behaviour.

 Insights into organizational design and formal vs. informal communication structures.
Social Psychology

Social psychology bridges psychology and sociology by focusing on interpersonal behaviour,

including:

 Group decision-making processes.

 Leadership styles and team dynamics.

Anthropology

Anthropology examines the cultural context within organizations. It helps understand how
shared values and beliefs influence organizational behaviour.

Example: Fred Luthans discusses how cross-cultural management in multinational

companies requires managers to adapt leadership styles to diverse cultural norms. For
instance, participative decision-making might thrive in Scandinavian cultures but face
resistance in hierarchical structures like those in Japan.

4. Significance of Organizational Behaviour

1. Enhancing Productivity

By applying OB principles, organizations can improve employee performance and efficiency.

For instance, recognizing individual strengths and aligning them with job roles leads to
higher productivity.

2. Promoting Job Satisfaction

OB studies identify factors contributing to job satisfaction, such as fair compensation, growth
opportunities, and a positive work environment.

3. Fostering Innovation

OB insights help create environments conducive to creativity and change, which are critical
for innovation-driven industries.

S.P Robbins: “Organizations that emphasize interpersonal skills among their workforce
achieve better financial outcomes and attract high-quality employees.”

4. Managing Change

OB equips managers with tools to handle resistance to change, ensuring smoother transitions
during organizational restructuring.

Example: During economic downturns, a leading airline used OB principles to maintain

morale by emphasizing transparent communication and involving employees in decision-
making.
5. Goals of Organizational Behaviour

A. Understanding Behaviour: Gain insights into why employees behave in certain

ways.
B. Predicting Behaviour: Anticipate responses to organizational changes.
C. Influencing Behaviour: Encourage actions that align with organizational goals.

Practical Goals

 Improving leadership effectiveness.

 Enhancing employee motivation and engagement.
 Building cohesive teams.

Example: Fred Luthans’ studies on evidence-based management showed how data-driven

decision-making in HR practices reduced employee turnover by 15% in a large retail chain.

6. Basic Model of OB

Overview

Robbins’ OB model integrates inputs, processes, and outcomes:

1. Inputs: Include individual characteristics (e.g., diversity, personality), group

dynamics, and organizational structures.
2. Processes: Encompass emotions, motivation, leadership, and communication.
3. Outcomes: Measure performance, job satisfaction, absenteeism, and turnover.

A model in Organizational Behavior (OB) is a simplified representation of real-world

organizational dynamics. It consists of three types of variables—inputs, processes, and
outcomes—analyzed at three levels: individual, group, and organizational. The model follows
a structured flow where inputs influence processes, leading to specific outcomes over time.

1. Inputs: Inputs serve as foundational factors that shape organizational behavior. These
include:

i. Individual Level: Personality, values, and diversity characteristics.

ii. Group Level: Group structure, roles, and team responsibilities.
iii. Organizational Level: Organizational structure and culture, developed over time
through experience and adaptation.

2. Processes: Processes refer to the actions driven by inputs that result in specific outcomes:

i. Individual Level: Emotions and moods, motivation, perception, and decision-

making.
ii. Group Level: Communication, leadership, power and politics, and conflict
resolution.
iii. Organizational Level: Human resource management and organizational change.
3. Outcomes:

Outcomes are the key variables affected by inputs and processes. They are categorized as
follows:

 Individual Outcomes:

i. Attitudes & Stress: Employee satisfaction, workplace stress, and their impact
on performance.
ii. Task Performance: Efficiency and effectiveness in completing job roles.
iii. Citizenship Behavior: Voluntary contributions beyond formal job
responsibilities.
iv. Withdrawal Behavior: Absenteeism, turnover, and employee disengagement.

 Group Outcomes:

i. Cohesion: The degree of unity and support among team members.

ii. Functioning: The effectiveness and quality of group work output.

 Organizational Outcomes:

i. Productivity: Achieving goals efficiently by optimizing input-output

processes.
ii. Survival: The organization’s ability to sustain itself and adapt to market
changes over time.

Additionally, feedback loops exist within the model, where outcomes influence future inputs,
creating a continuous cycle of organizational development. This model provides a structured
approach to analyzing how organizations function and evolve over time.
Nature of Organizational Behaviour (OB)

1. Field of Study, Not a Discipline

1. OB is a broad-based field with a theoretical foundation originating from

management.
2. It is interdisciplinary, combining knowledge from various areas but is not a
standalone discipline.
Example: OB studies leadership theories (management) alongside group
dynamics (psychology).

2. Interdisciplinary in Nature

1. Draws from multiple disciplines like psychology, sociology, anthropology,

medical sciences, and political science.
2. Focuses on cause-effect relationships and their application to achieve
organizational goals.
Example: Psychological principles applied to motivate employees (e.g.,
Maslow's hierarchy of needs).

3. Applied Science

1. Principles of OB are tested and utilized to address organizational challenges.

Example: Using OB concepts to resolve conflicts in teams through mediation
techniques.

4. Humanistic Approach

1. Considers employees' feelings, values, and attitudes, acknowledging they are

not machines.

Example: Providing flexible working hours to improve employee satisfaction.

5. Optimistic Approach

1. Focuses on employees' potential to positively contribute to organizational

goals.
2. Aligns individual goals with organizational objectives.
Example: Implementing incentive programs to boost productivity.

6. Rational Approach

1. Assumes all human behaviour has a reason and analyzes it systematically.

Example: Studying absenteeism to understand underlying causes like stress or
dissatisfaction.

7. Developmental in Nature

1. Aims at the personal and professional growth of employees.

Example: Offering training programs to enhance employees' skills.
 8. Part of Management Science

1. Originates from management studies and is integral to management science.

Example: OB principles help managers effectively lead teams and enhance
productivity.

9. Combination of Science and Art

1. Science: Systematic knowledge, consistent analysis, and critical evaluation

based on management theories.
2. Art: Application of skills such as leadership, communication, and conflict
resolution.
Example: Leadership styles combining scientific understanding with practical
application.

10. Total Systems Approach

1. Considers all variables, studying individuals, groups, formal, and informal

relationships within organizations.
Example: Analyzing how organizational culture impacts team collaboration.

Foundations of Organizational Behaviour (OB)

1. Individual Differences

1. Every individual has a unique and stable personality shaped by physiological,

psychological, and social characteristics.
2. While studying human behaviour, three aspects should be considered.

2. Behaviour is Caused

1. Every behaviour has a cause; it is a result of a cause-and-effect relationship.

2. Managers should evaluate the reasons behind employee behaviour.
Example: Identifying stress as a cause for decreased productivity.

3. Behaviour is Complex

1. Despite being caused, human behaviour is challenging to fully understand due

to its complexity.

Example: Different employees react differently to the same leadership style.

4. Value of a Person

1. Emphasizes respecting human dignity and considering values and attitudes.

2. Treat employees with respect and acknowledge their contributions.
Example: Celebrating employee achievements fosters value recognition.
 5. Whole Person Concept

1. An individual cannot separate personal and professional life.

2. Organizations employ both the skills and emotions of individuals.
Example: Supporting employees with flexible leave policies during personal
crises.

6. Role of a Person

1. Individuals play various roles in life (e.g., parent, team member, supervisor).
2. It is essential to understand roles and act accordingly.
Example: A supervisor balancing leadership with team collaboration.

7. Difference Between Individual and Group Behaviour

1. Individual and group behaviours may differ; individual behaviour can be

positive while group behaviour is negative, and vice versa.
2. Both aspects must be studied for a comprehensive understanding of behaviour.
Example: An individual may be motivated, but group dynamics could hinder
performance.

OTHER MODELS IN OB

Concept

1. Organizational behaviour models represent belief systems that influence

management's thinking and actions.
2. The quality of these systems affects organizational results.
3. Managers must recognize the nature, significance, and effectiveness of their own and
others' models.

A. The Autocratic Model

1. Core Idea:

1. Based on power and authority; employees must obey orders without question.
2. Rooted in McGregor’s Theory X, assuming workers dislike work and require
supervision.

2. Features:

1. One-way communication (top-down).

2. Minimum wages for minimum performance.
3. Workers dependent on the boss for subsistence.

3. Advantages:

1. Effective in crises and highly disciplined environments like the military.

2. Historically significant for industrial growth.
4. Disadvantages:

1. No feedback from employees.

2. Lacks motivation for skill development and creates worker frustration.
3. Can lead to broader social issues.

5. Modern Trends:

1. Shift to decentralized, team-based, and consumer-driven models (heterarchical

and chaordic).
2. Flexible leadership required to balance innovation and operations.

B. The Custodial Model

1. Core Idea:

1. Focuses on employees' dependence on the organization rather than on the

boss.
2. Provides economic rewards, security, and welfare to dispel insecurity and
frustration.

2. Features:

1. Psychological reassurance through benefits like pensions, insurance, and

workplace childcare.
2. Employees are content and well-maintained but may exhibit only passive
cooperation.
3. The model relies on economic resources and wealth.

3. Advantages:

1. Reduces employee frustration, aggression, and insecurity.

2. Improves employee satisfaction and contentment.

4. Disadvantages:

1. Contentment does not equate to strong motivation or high productivity.

2. Employees become dependent on the organization but lack commitment to its
goals.

5. Comparison to Autocratic Model:

1. Builds on McGregor’s Theory Y (progressive management) rather than

Theory X.
2. Brings security and satisfaction but lacks the drive for innovation or peak
performance.
 Insight: Content employees are not always the most productive, highlighting a need
for motivation beyond economic rewards.

C. The Supportive Model

1. Core Idea:

1. Leadership, not power or money, motivates employees.

2. Management creates a supportive environment to help employees grow and
achieve organizational goals.

2. Features:

1. Workers feel participation, task involvement, and a sense of status and

recognition.
2. Manager’s role: Solve problems and support employees’ job performance.
3. Based on Likert’s principle of supportive relationships.

3. Psychological Impact:

1. Employees feel valued and develop a sense of personal worth.

2. Leads to strong motivation and awakened drives for work.
3. Employees identify with the organization, saying "we" instead of "they."

4. Advantages:

1. Encourages self-driven efforts, responsibility, and skill improvement.

2. Does not require additional monetary investment—relies on management
behaviour.
3. Effective in developed nations where higher-level needs (esteem, affiliation)
are prioritized.

5. Disadvantages:

1. Limited applicability in developing nations where employees focus on basic

needs.
2. Difficult to implement consistently in practice.

6. Comparison to Other Models:

1. Moves beyond the custodial model’s focus on economic rewards.

2. Based on McGregor’s Theory Y, emphasizing employees’ potential and
natural inclination to work.

Insight: The supportive model is a progressive approach that fosters employee

satisfaction and performance through leadership and recognition, making it highly
effective in the right conditions.

D. The Collegial Model

1. Core Idea:

1. Based on teamwork and mutual contribution between employees and

management.
2. Employees and employers work together cooperatively towards a common
purpose.

2. Features:

1. Management acts as a coach, fostering teamwork and building a better team.

2. Managers are seen as joint contributors, not as bosses.
3. Employees feel valued, needed, and responsible for their contributions.

3. Psychological Impact:

1. Promotes self-discipline and internal obligation to produce quality work.

2. Employees feel a sense of fulfillment, worthwhile contribution, and self-
actualization.
3. Encourages moderate enthusiasm and commitment to organizational goals.

4. Advantages:

1. Employees take responsibility for their performance.

2. Fosters a sense of partnership, leading to better cooperation and quality work.
3. Builds a collegial atmosphere that supports organizational objectives.

5. Examples of Application:

1. Commonly found in research laboratories and human service organizations.

2. Employees produce quality work driven by their internal sense of obligation
rather than external pressure.

Insight: The collegial model creates a collaborative environment where teamwork

and self-discipline drive performance, fulfilling higher-level employee needs like self-
actualization.
 Comparison among four models of Organisational Behaviour

Conclusions about the Models:

Evolution of Models: The four models have evolved over time.

Autocratic Model: Rooted in the industrial revolution, aligned with McGregor’s Theory
X.

Subsequent Models: Built on McGregor’s Theory Y, reflecting a shift in management

approaches.

No 'Best' Model: There is no one model that remains the best permanently. Even the
supportive model may become less relevant over time.

Collegial Model: Represents the beginning of a new paradigm, not necessarily the final
or best model.

Manager's Challenge: Managers must critically evaluate the model they use and assess
its current effectiveness.

Tasks for Managers:

1. Acquire a new set of values as models evolve.

2. Apply behavioral skills consistent with evolving values.

Incremental vs Allocative Effects:

1. Economic values are allocative (zero-sum game), where resources are fixed and
cannot be shared.
 2. Human values (growth, fulfillment, self-actualization) are incremental and self-
generated, not zero-sum.
3. Job satisfaction can increase in one department without taking away from others.

Models and Employee Needs:

1. The models (autocratic, custodial, supportive, collegial) serve different employee

needs.
2. Autocratic model meets subsistence needs, but not security.
3. Custodial model addresses security needs.
4. Supportive model serves needs like affiliation and esteem.
5. Collegial model meets self-actualization needs.
6. The adoption of one model doesn't reject others; it reflects changing priorities as
employee needs evolve.

Trend Toward Newer Models:

1. Increasing organizational complexity and more educated employees are moving

organizations away from the autocratic model.
2. The supportive and collegial models are gaining importance.
3. The system model is emerging, focusing on ethical work environments, integrity, and
community among coworkers.

Contingent Use of Models:

1. Most organizations don't strictly follow one model; there’s often a mix of models.
2. Some jobs require autocratic or custodial models (routine, low-skilled work), while
others (intellectual, unstructured) respond better to supportive or collegial models.
3. The "best" model depends on the task and employee needs. For example, autocratic
works well in military operations, but not in NGOs, where a collegial approach is
more suitable.