INDORE INSTITUTE OF LAW

(Affiliated to BCI & DAVV)

Organisational Behaviour
By
Dr.Chitra Joshi
Asst Professor
IIL,Indore
Organisational Behaviour
 Organization
Louis Allen, “Organization is the process of identifying and
grouping work to be performed, defining and delegating
responsibility and authority and establishing relationships
for the purpose of enabling people to work most effectively
together in accomplishing objectives.” In the words of Allen,
organization is an instrument for achieving organizational
goals. The work of each and every person is defined and
authority and responsibility is fixed for accomplishing the
same.
Wheeler, “Internal organization is the structural framework
of duties and responsibilities required of personnel in
performing various functions within the company…………
It is essentially a blue print for action resulting in a
mechanism for carrying out function to achieve the goals set
up by company management”. In Wheeler’s view,
organization is a process of fixing duties and responsibilities
of persons in an enterprise so that business goals are
achieved.
Koontz and O’Donnell, ‘The establishment of authority
relationships with provision for co-ordination between
them, both vertically and horizontally in the enterprise
structure.” These authors view organization as a
coordinating point among various persons in the
business.
 Characteristics Of Organisation

Identifiable aggregation of human beings:-Identifiable is

possible because human group not merely a number of
persons collected at random, but it is a group of persons who
are interrelated. It does not means that all the individuals
know each other personally as in large organization is not
possible.

Deliberate of the conscious creation:-It shows that the

relationship between organization and its members is
contractual. Unsatisfactory persons can be removed or
replaced. The organization can also select its personnel
through promotion, demotion, transfer and can continue for
much longer period than their members.
Purposive creation:-they have some objectives and a set
of objectives. The objective are mutually agreed upon by
the members of the group. The organizational objective
is a desired state of affairs, which the organization
attempt to realize.
Coordination of activities:- it is necessary because all
the members contribute to commonly agreed goals. The
objectives of coordination of activities not individuals or
only some of the activities of individuals are relevant.
Structure:- Coordination requires a structure where in
various individuals are fitted the structure provides power
centers, which coordinate and control concerted efforts of
the organization and direct them towards its goals.

Rationality:- Every organization has some specified norms

and standards of behaviour.such norms of behavior are set
up collectively by the individuals and every member of the
organization is expected to behave according to these norms
or standards. the behavior is governed by rewards and
penalty system of the organization.
Functions/ purpose of organization:-
Organization typology relates to the various categories into
which organization can be classified. organizations are
assigned to certain types about which generalization can be
made. Typology indicates a scheme of
compartmentalization.
 Functions of organization

Determination of activities,
Grouping of activities,
Allotment of duties to specified persons,
Delegation of authority,
Defining relationships, and
The co-ordination of various activities.
Functions of Org.

Benefits

Compliance Structure

Degree of First order

Org.
formulation factor

Sec. Order
Authority
factor

Objectives
 Organisational Behaviour
Organizational behavior is directly concerned with the
understanding, prediction and control of human behavior in
organizations. It is an area of study that investigate the
impact that individuals, groups and structure have on
behavior within organizations.

. “Organizational behavior is a subset of management activities

concerned with understanding, predicting and influencing
individual behavior in organizational setting.” –
Challahan, Fleenor and Kudson
 Significance of O.B.
Gives ideas to mgmt. .
Helps to understand behavior.
Helps managers to know person.
Helps to develop behavior.
Emphasis on org. objectives.
Human factor is not an instrument it is a core of
organizational existence.
OB helps an individual to develop among refined workable
set of assumptions more directly relevant to his work
interaction.
Ob helps the person to develop themselves and their
behavior.
 Foundation of O.B.

O.B.

Concept related to Concept related to

Nature of man Nature of org.

Motivational Value of
Perception Social System Mutual interest Ethics
behavior person
 Nature of O.B.

Objective
orientation

Normative Field of
Value control study

O.B.
System Interdisciplinary
approach approach

Applied Science Optimistic

 Features of OB

(1)A field of study and not a discipline:- OB can be treated

as a distinct field of study and not a discipline or even
emerging discipline.A discipline is an accepted science
with a theoretical foundation that serves as the basis for
research and analysis.OB because og his broader base
recent emergence and interdisciplinary orientation, is not
accepted as a science.
(2) Interdisciplinary approach :- it integrates the recent
knowledge drawn from different disciplines for some
specific purpose..
(1)An applied science:- the basic objective of OB is to
make application of resources to solve the
organizational problems, particularly related to Human
behavior aspect.
(2)Normative and value centered:- a normative science
prescribed how the various findings of the research can
be applied to get organizational result which are
acceptable to the society, unlike pure science with
suggest only cause effect relationship
(5)Humanistic and optimistic:-it focuses on attention of
humanistic point of view. it is base on belief and motivation.

(6) Orientation towards organizational objectives:- ob tries

to integrate individual objectives to organizational
objectives.

(7) A total system approach:- in the living system of an

organization is viewed as an enlargement of a man. A person
behavior can be analyzed keeping in view his psychological
frame work, interpersonal orientation, social and cultural
factor.
 Characteristics of OB

1. Science as well as Art – OB is both science and art. It is a

systematic body of knowledge about human behavior so it is
considered as science but it is in exact science as human
behaviour cannot be predicted exactly so sometimes it
cannot provide answers to specific organizational problems.
As an art the knowledge of OB is applied to improve
organizational effectiveness.

2. Human tool – Organizational behaviour is a human tool for

human benefit which helps the manager of certain actions. It
also provides the education needed for creative thinking to
save human problems in organizations.
3. Action & goal oriented – OB is a goal directed discipline that
studies human behaviour and explain it in organizational
context as well as helps in taking proper action to mould that
individual behaviour towards the goal achievement of
organization.

4. Commonality of Interest – OB helps in providing

commonality of interest between individual goals and
organizational goals and objectives. It provides super-
ordinate goals that unite the variety of needs that bring
people to organizations.
5. Holistic Concepts – OB is a holistic concept which relates
people whole group, organization as a whole system. It gives
a broad view of people in organization and studies many
factors that influence their behaviour. It gives a broad view
of human related issues & problems.

6. Behavioural Approach to Management – OB is a behavioural

approach to management. It is a part of management related
with analyzing behaviour of human beings in group &
organization. It is distinct field of study.
7. Integrating Approach – OB is an integrating approach of
human technical and ethical values s work which draws
knowledge from various disciplines such as anthropology,
Psychology, Law, Sociology, Economics, IT Political
Science, engineering etc.
8. Cause and Effect Relationship – Human behavior is generally
taken in terms of cause and effect relationship and not in
philosophical terms. It helps in predicting the behavior of
individuals. It provides generalizations that managers can
use to anticipate the effect of certain activities on human
behavior.
 Elements of OB
Individual: The most important element of OB. OB studies the
behavioural of individual (or in a group) and the various
factors influencing the behavior and its effects on
organization.
Group: Group can be formal, informal, small, large, official,
unofficial in nature. Group is dynamic ever changing in
nature.
Organization structure: OB establishes various post & positions
for people in organization & thus creates a professional
relationship in between them.
Technology: Use of technology also influences human behavior
External environment:- Organization is a part broader external
environment. Environment affects the organization through
technological or scientific developed, social, cultural and
Govt. actions.
 Approaches to study OB

1. Human Resources Approach: This approach recognize fact

that human resources is the central and most important
resources of any organization and should be developed
towards high competency, creativity so that they can
contribute to the success of the organization. This approach
is also called supportive approach.
2. Contingency Approach: This approach assumes that there is
no best way available in any organizational situations and
each situation is contingent or influenced by many other
variables. Appropriate managerial action on any situation
depends on various elements related to that situation.
3. Systems Approach: Systems approach views OB as a system
of which all its parts or activities as interrelated.
4. Productivity approach: Productivity is the ratio output input
shows the efficiency and effectiveness of organization. It is
expressed in terms of economic inputs and outputs but
human and social inputs and outputs are also important OB
decision involve human, social and economic issues and so
productivity is the significant part of literature of OB.
5. Internationalism: Internationalism studies that how people
select interpret behaviour in various situations to determine
individuals' behaviour.
 Models of OB

1. Autocratic Model- This model is more of authority oriented

in approach. It is based on the phenomenon that person who
is in command have the power to demand. Organizations
having autocratic environment have the superiors who feel
that employees are lazy & try to avoid work so they need to
be directed, command pushed & persuaded to the work.
They feel that employees should be given orders & should
be closely supervised & controlled for their work. Boss has
the power to command & control. Employees in these
organizations work under fear, frustration, harassment,
unsecure & performance level is relatively low. They work
only in the fear of losing their job.
2. Custodial Model-This method is reward oriented (Extrinsic
or economic reward) focusing on satisfying the monetary,
physiological, security & welfare needs of employees to
motivate then to work efficiently for achieving goals &
objectives of organization. This model focus that money is
best way to motivate employed to increase their productivity
& to reduce their level of frustration & insecurity rather than
by forcing & ordering them.
3. Supportive model- This is a leadership oriented model and
focus of supportive leadership style to motivate and improve
the performance of employees at work rather than by using
powers or giving monetary rewards. It focuses on providing
cordial & supportive organizational climate & assume that
workers are not lazy & work shinkers & if they are
(instrinsicly) awarded i.e. if their psychological needs are
satisfied, they can be efficient at their work & workplace.
This model is more successful in other nations in comparison
to India.
4. Collegial Model- Collegial means a group of persons having
a common purpose. This model is based on the concept of
treating employees as the partners & important members of
organization so that they can relate themselves more
dedicatedly towards organizations & can work with loyalty,
dedication, faithfulness & hard work for achieving its goals.
This model focuses on team spirit, brand building & self-
discipline. Workers have more job-satisfaction, job-
involvement & degree of fulfillment.
 Objectives of OB

To describe systematically how people behave under a

variety of conditions.
To understand why people behave as they do.
To predict employee behavior.
To control and develop some human activity at work.
 Challenges of OB

1. Managerial
a) Workforce diversity
b) Changing Demographics of workforce
c) Empowering workforce

2. Workplace issues & challenges

a) Employee Privacy
b) Employee rights
c) Unionism
d) Changed employee expectations
 3. Organizational challenges

a) Improving quality and productivity

b) Managing technology & innovation
c) Coping with temporariness
d) Ethical behavior & culture

4. Global challenges
a) Changes due to liberalization, privatization & globalization
b) Development of Corporate re-organization
 Role of O.B.

O.B.

Understanding Controlling & Organizational

Human beh. direction adaptation