Organizational

Behaviour
 Organizational Behaviour - Syllabus
Overview- Organisational Behaviour- Concept and Emergence of OB Concept; Nature
and Theoretical frameworks; Disciplines contributing to the field of OB; Historical
Background- Hawthorne Studies, Psychological foundations; Models of Organisational
Behaviour, Challenges and Opportunities for Organisational Behavior; Ethics and
Organisational Behaviour.

Personality, Attitude and Values–

Attitude- Concept, Components, Functions & Types of Attitude, Factors that
determine attitude, Steps to build a positive attitude, ways to change attitudes of
others and self
Values- Meaning, Value System, Types of Values, Locke’s Value Theory
Personality–Concept, Theories & Determinants of Personality,Holland’sTheory
of Job Fit, Big Five Model, Personality Tests

Individual Behaviour:McGregor’s Theory X and Theory Y; Chris Argyris Behaviour

Patterns. Motivation - Maslow’s Need Hierarchy, Herzberg’s Two Factors Theory,
Vroom’s Expectancy Theory; Theory of Intrinsic Motivation by Ken Thomas; Work –
Designing for creating motivating Jobs;
 Organizational Behaviour - Syllabus
Group Behaviour: Group Dynamics, Cohesiveness and Productivity; Management of
Dysfunctional groups; Group Decision Making; Organisational Politics. Leadership-
Concept and Styles; Fielder’s Contingency Model; House’s Path -Goal Theory;
Leadership Effectiveness

Inter-personal Behaviour: Interpersonal communication and Feedback; Transactional

Analysis (TA); Johari Window. Managing misbehaviour at work- Sexual abuse,
Substance abuse, cyberslacking, Aggression, and Violence.

Conflict and Frustration- levels, and types of conflict; Traditional and modern
approaches to conflict; Functional and dysfunctional conflicts; Resolution of conflict.

Reference : Udai Pareek (2011): Understanding Organizational Behaviour, Oxford

University Press
Stephen Robbins and Judge Timothy (2005):OrganizationalBehaviour, Pearson
Education
Jit S Chandan (2005): Organisation Behaviour, Vikas Publishing House
S .S. Khanka (2010): Organizational Behaviour: Text and Cases, S. Chand Publications
K. Aswathappa (2011): Organizational Behaviour: Text, Cases and Games, Himalaya Publishing
House
Harvard Business Reviews & ICFAIJournals
OB - Overview
 Introduction

The study of organizations and of the collection of people within them together
comprises the field of organization.

Organizations are defined as social arrangements, constructed by people, who

can also change them.
----Buchanan and Huczynski (1997)

Organizations are a system of cooperative activities - and their coordination

requires something intangible and personal
---- Barnard (1938)

OB is concerned with “the study of the structure, functioning and performance

of organizations, and the behavior of groups and individuals within them”.
---- Pugh (1971
 Introduction
What is OB?

Organizations are social systems.Organization is a combination of humanity

and technology.

OB is the study and application of knowledge about how people act within the
organization.

A complex set of forces affects the nature of organizations today.

It can be classified into four areas:

1. People
2. Structure
3. Technology
4. Environment

When people join the organization to accomplish the goals/ objectives, some
kind of structure is required. They use machinery, gadgets & technology to
achieve the organizational goals. At the same time they are influenced by
external environment.
Nature of OB
 Discipline Contribution in the field of OB
1. Psychology: how individuals behave in response to a stimulus.

2. Sociology: how individuals relate to groups and to each other.

3. Social Psychology: How individuals and organizations perceive conflict, threats

and undergo stress.

4. Anthropology: understanding customs ,traditions and social nature of people

since the organization is a subset of the larger society.

5. Political Science: Understanding Power, Authority and Corporate Politics.

6. Economics: Appreciating monetary (wage and bonus) and non monetary

incentives (housing, schooling and medical care) to employees so that they are
motivated to produce more efficiently and effectively.
 Challenges of OB
• Globalization to Respond

• Managing Diversity

• Improving Quality and Productivity

• Improving Customer Service

• Improving People Skills

• Stimulating Innovation and Change

• Coping with Temporariness

• Working in network organization

• Helping employees balance work-life conflicts

• Creating Positive work environment

• Improving Ethical Behaviour

 Importance of OB
• OB uses scientific research to understand and make organization life,
as it helps to predict what people will do under various conditions
• It helps to influence organizational events – to understand and
predict events
• It helps individual understand herself/ himself in better fashion.
• It helps manager to manage human resources effectively.
Eg. Motivation
• It helps organizations for maintaining cordial industrial relations.
• It is also useful in the field marketing
Efficiency and effectiveness of Manager
Henry Mintzberg Theory of Managerial Roles
 Interpersonal Roles
Roles Description Examples
Informational Roles
 Decisional Roles
Roles Description Examples
 General Management theories
1. Frederick Taylor – Theory of Scientific Management
2. Henri Fayol – Administrative Management Theory
3. Max Weber - Bureaucratic Theory of Management
4. Elton Mayo – Behavioral Theory of Management
( Hawthorne Effect )
 General Management theories
• FREDERICK TAYLOR : Theory of Scientific Management

• Taylor’s theory of scientific management aimed at

improving economic efficiency, especially labor
productivity.

• Taylor had a simple view about what motivated people

at work.

• He felt that workers should get a fair day's pay for a fair
day's work.
 General Management theories
Four Principles of Scientific Management are :

• Time and motion study - Study the way jobs are

performed and find new ways to do them.

• Teach , train and develop the workman with improved

methods of doing work. Codify the new methods into rules.

• Interest of employer & employees should be fully

harmonized so as to secure mutually understanding
relations between them.

• Establish fair levels of performance and pay a premium

for higher performance.
 General Management theories
HENRI FAYOL : Administrative Management Theory
Henri Fayol laid down the 14 principles of Management :
• Division of Work Equity
• Discipline
• Authority and responsibility
• Subordination of Individual
• Stability Of Tenure
• Unity Of Direction
• Centralization
• Unity of Command
• Remuneration
• Scalar chain
• Equity
• Initiative
• Order
• Espirit de corps
 General Management theories
MAX WEBER - Bureaucratic Theory Of Management

Weber made a distinction between authority and

power.
Weber believed that power educes obedience
through force or the threat of force which induces
individuals to adhere to regulations.
 General Management theories
MAX WEBER - Bureaucratic Theory Of Management

Weber made a distinction between authority and

power.
Weber believed that power educes obedience
through force or the threat of force which induces
individuals to adhere to regulations.

Features of Bureaucracy
1.Division of Labor
2. Formal Hierarchical Structure
3. Selection based on Technical Expertise
4. Management By Rules
5. Written Documents
6. Only Legal Power is Important
7. Formal and Impersonal relations
 Hawthorne Experiments
• The Human Relations Movement began with the Hawthorne
Experiments.
• They were conducted at Western Electrical Works in USA,
between 1924-1932.
• It was initially designed by Western Electric Industrial
engineers

Four Parts of Hawthorne Studies / Experiments

• Part I - Illumination Experiments (1924-27)
• Part II - Relay Assembly Test Room Study (1927-1929)
• Part III - Mass Interviewing Programme (1928- 1930)
• Part IV - Bank Wiring Observation Room Experiment (1932)
 Hawthorne Experiments
Part I - Illumination Experiments (1924-27)

• These experiments were performed to find out the effect

of different levels of illumination (lighting) on
productivity of labour.
• The brightness of the light was increased and decreased
to find out the effect on the productivity of the test
group. Surprisingly, the productivity increased even when
the level of illumination was decreased.
• It was concluded that factors other than light were also
important.
 Hawthorne Experiments
Part II - Relay Assembly Test Room Study (1927-1929)

• Under these test two small groups of six female

telephone relay assemblers were selected.
• Each group was kept in separate rooms. From time to
time, changes were made in working hours, rest time,
lunch breaks, etc.
• They were allowed to choose their own rest time and to
give suggestions.
• Output increased in both the control rooms.
• It was concluded that social relationship among
workers, participation in decision-making, etc. had a
greater effect on productivity than working conditions.
 Hawthorne Experiments
Part III - Mass Interviewing Programme (1928-1930)

• 21,000 employees were interviewed over a period of

three years to find out reasons for increased productivity.

• It was concluded that productivity can be increased if

workers are allowed to talk freely about matters that are
important to them
 Hawthorne Experiments
Part IV - Bank Wiring Observation Room Experiment (1932)

• A group of 14 male workers in the bank wiring room

were placed under observation for six months.
• A worker's pay depended on the performance of the
group as a whole.
• The researchers thought that the efficient workers would
put pressure on the less efficient workers to complete
the work.
• However, it was found that the group established its own
standards of output, and social pressure was used to
achieve the standards of output.
 Conclusion : Hawthorne Experiments
1. The social and psychological factors are responsible for
workers' productivity and job satisfaction. Only good
physical working conditions are not enough to increase
productivity.
2. The informal relations among workers influence the
workers' behaviour and performance more than the formal
relations in the organisation.
3. Employees will perform better if they are allowed to
participate in decision-making affecting their interests.
Conclusions of Hawthorne Studies / Experiments
4. Employees will also work more efficiently, when they
believe that the management is interested in their welfare.
 Conclusion : Hawthorne Experiments
5. When employees are treated with respect and dignity,
their performance will improve.

6. Financial incentives alone cannot increase the

performance. Social and Psychological needs must also be
satisfied in order to increase productivity.

7. Good communication between the superiors and

subordinates can improve the relations and the productivity
of the subordinates.

8. Special attention and freedom to express their views will

improve the performance of the workers.
 Models of OB

Modern Models of OB:

• Autocratic Model
• Custodial Model
• Supportive Model
• Collegial Model
• SOBC Model : Stimulus – organism - behaviour -
consequences
 Models of OB
Basis of Managerial Employee EmployeePsycholo Employee Performance
Models Model Orientation Orientation gical results Needs Met Result
Autocratic Dependence on
Model Power Authority
Obedience BossSubsistence Minimum
Custodian Economic Security and Passive Co-
Model Resources Money Benefits Dependence on Org Security operation
Supportive Job Status and Awakened
Model Leadership Support Performance Participation Recognition Drives
Collegial Responsible Self- Moderate to
Model Partnership Teamwork behaviuor Self-Discipline Actualization Enthusiasm
Higher Order Passion and
SOBC Model Facilitator Empathy Belongingness Onwership Needs Commitment