SCHOOL OF MANAGEMENT STUDIES

UNIT – I- Dynamics of Organizational Behaviour – SBAA5102

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 UNIT 1 - CONCEPT OF ORGANIZATIONAL BEHAVIOUR

ORGANISATION:
An organization is a group of people working together in a formally organized way to
achieve a common objective. The main objective is profit maximization.
Features of an organization :-
 Group of people
 Formally organized people/structure
 Co-ordination among people
 Rationality
 Purposefully created to achieve a common goal

BEHAVIOUR:
It is how a person behaves. It is an observable and measurable activity of human being.
ORGANISATIONAL BEHAVIOUR
Definition: - Stephen P Robbins
‗It is a field of study that investigates the impact that individuals, groups , structures have on
behaviour within the organization, for the purpose of applying such knowledge towards
improving organizational effectiveness‘.
Hence based on the definition we can say that
 OB is a field of study
 It studies individuals, groups and structures
 It applies the knowledge to improve organizational
effectiveness.
Therefore Organization Behaviour is concerned with two
aspects:-
How people behave in an organization?
How their behaviour does affect their performance?
Definition–Keith Davis
―Organizational Behaviour is the study and application of knowledge about how people act
with in the organization‖.

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Definition: - Stephen P Robbins
‗It is a field of study that investigates the impact that individuals, groups , structures have on
behaviour within the organization, for the purpose of applying such knowledge towards
improving organizational effectiveness‘.
Hence based on the definition we can say that
 OB is a field of study
 It studies individuals, groups and structures
 It applies the knowledge to improve organizational effectiveness. There fore
Organization Behaviour is concerned with two aspects:-
 How people behave in an organization?
 How their behaviour does affect their performance?

―Organizational Behaviour is the study and application of knowledge about how people act
with in the
organization‖. Definition – Keith Davis

KEY ELEMENTS OF ORGANISATIONAL BEHAVIOUR

KEY ELEMENTS OF OB

PEOPLE STRUCTURE TECHNOLOGY ENVIRONMENT

 People
 Structure
 Technology
 environment

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OB studies the following aspects

 People: Individuals & Groups

 Structure: Official Relationship

 Technology: Physical, Economic resources

 Environment: Political, Legal an Natural

NATURE OF OB

1. It is just a field of study and not a discipline:

OB is accepted science with theoretical foundation and it serves as a base of research. It

is a recent field of study which has its origin from management. It is broad based and
inter disciplinary in nature. Hence it is not a discipline but a field of study.
2. It is interdisciplinary in nature:

It is broad based and inter disciplinary in nature because it has its origin from subjects
like psychology, sociology, anthropology, medical sciences, political science etc.,
3. It is normative science and value centered :( cause and effect application):

A positive science analyses only the cause and effect relationship but a normative
science analyses the cause and effect and also its application to achieve organizational
results.
It is also value centered as it analyses what is acceptable to employees based on the values
they have.

4. It is applied science: The principles of OB are proven and can be applied to solve
organizational problems.
5. It has humanistic approach: OB considers human feelings , their values and
attitudes and considers that human beings are not machines and they too be cared for.

6. It has optimistic approach: It has positive approach and views that the employees
well contribute positively to achieve the objectives of the organization.It is directed
towards achievement of organizational objectives: Organizational objectives are
given more importance then individual objectives.
7. It has rational approach: It believes that there is a reason being every behaviour of

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 man and works on the same formula.
8. It is developmental in nature: It aims at the development of the its employees and
help them to attain their goals.
9. It is part of management science: OB is a study that has emerged form the
discipline of management .Hence is a part of management science.
10. It is both science and art: OB is both science and art .

It is science because, like science OB is also a systematic body of knowledge, its

analyses is also consistent in nature, it can be systematically explained and critically
evaluated, the analyses are based on the findings of management theorists.
It s art because it is related to bringing desired result, it is application of skills like
leadership skills, managerial skills, training skills etc.,
11. It has total systems approach: It takes all variables in consideration. It studies
individuals and groups in formal and informal relations in organizations.

FOUNDATIONS OF OB / BASIC CONCEPT OF OB

1. Individual differences exists: Every individual has a unique personality, which is

stable in nature. Hence each person is different from the other based on his
physiological, psychological and social characteristics. Three aspects should taken care
while studying human behaviour:
2. Behaviour is caused:

Behaviour is what a person does and it is cause and effect relationship. It means that
there is a reason behind every single behaviour on any individual. Hence the cause
should be evaluated by the manager in an organization.
3. Behaviour is complex: Though OB believe that behaviour is caused , yet it is very
difficult to understand human behaviour.
4. Value of a person: Human value is given importance. It means one should be treated
with respect and dignity. Values and attitudes should be considered. Men at workplace
should be considered
5. Whole person concept
The concept states that a individual employed by the organization is cannot be separated

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 form his personal life aspects .Though an organization employs a person‘s skill & brain
in his organization, yet it is a fact that an individual cannot be separated from his home
life and work life.
6. Role of a person

A role is a pattern of actions expected of a person in activities involving others. Each

individual plays different roles in his life time.( Parent, son , Friend , Spouse, team
member, supervisor, follower, advisor, consumer, investor etc., ).Hence it becomes
necessary for him to understand the role clearly and act accordingly.
7. Difference between individual behaviour and group behaviour:

Individual behaviour may be good but group behaviour may be bad .Group behaviour
may be good but Individual behaviour may be bad. As Individual behaviour may vary
form group behavior, human behaviour should be studied in both the aspects.

SCOPE OF OB
OB can be studied in three different levels: -

1. Individual-
 Intra Individual- Understanding human behaviour i.e. how and why an
individual behaves and to understand the factors affecting human behaviour
 Inter Individual- To understand the working relationships, role analysis and
transaction analysis of individual with others.
2. Group

 Intra Group – understand the group pressure on individuals , influence of group

norms on individuals , communication process in organization.
 Inter Group – Relationship between groups, achievement of group objectives and
group objectives.,
3.Organization:
 Intra- Organization- use of human power in organizations , leadership qualities,
communication in organization.
 Inter –Organization- organization change, external relationships, Development

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 standards and concepts for future, Scientific and rational approach to Human
Behaviour.

Disciplines contributing to Organisational Behaviour

1. Sociology: It is the study of people in relation to their fellow human beings, The
field of sociology has made valuable contributions in the study of group of
individuals, group dynamics, formation of groups, communication, formal and
informal organizations etc.,
2. Anthropology : It is the study of societies to learn about human beings and their
activities. It helps us to understand values,attitudes and behaviour between
people in different regions and organizations.
3. Economics: It is the science that deals with the production, distribution, and
consumption of goods and services, or the material welfare of humankind.
4. History: It is the study of the origin and evolution of man kind. It help us to
understand the behaviour of people and their origins
5. Political science: It helps us to study the current political and legal scenario and
the role of the study of human behaviour under the current situations
ORGANISATIONAL BEHAVIOURAL MODELS
In management, the focus is on the study of the five organizational behavior models:
 Autocratic Model
 Custodial Model
 Supportive Model
 Collegial Model
 System Model

1. Autocratic model
This model has its roots in the historical past, and definitely became a most prominent
model of the industrial revolution of 1800 and 1900s. It gives the owners and manager‘s
power to dictate and form decisions while making employees obey their orders. The
model asserts that employees need to be instructed and motivated to perform while
managers do all the thinking. The whole process is formalized with the managers and

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authority power has the right to give command to the people, ―You do this or else…‖, is
a general dictatorship command. As Newstrom suggests, ―the psychological result of the
employees is dependence on their boss, whose power to ―hire, fire and perspire‖ is
almost absolute. Employers receive less wages as they are less skilled and their
performance is also minimum, which they do it rather reluctantly as they have to satisfy
the needs of their families and themselves. But there are some exceptions as many
employees do give higher performance because either they would like to achieve or have
a close association with their boss, or either they have been promised a good reward, but
overall their performance is minimum.
The theory of X assumption of McGregor states employers do not take responsibility
and managers have to supervise over their work to obtain desired results. This model can
also be compared to the Likert system in which use of punishment, force, fear or threats
sometimes are used as means to get the results from the employees.
Custodial Model
Now the time came when managers began to think the security of the employees is
imperative- it could be either social as well economic security. Now managers have
begun to study about their employees needs, they found out that though in the
autocratic setup employees does not talk back yet they have many things to say but
incapability to speak result in frustrations, insecurity, and aggressive behavior towards
their boss. Since they are not able to display their feelings, they would vent these
feelings on their family and neighbors. This causes suffering to the entire community
and relationships and this often results in bad performance. Newstrom gave the example
of a wood processing plant where the employees were treated very cruelly even to the
extent of physical abuse. Since workers were not able to strike back directly they show
their aggression by destroying the good sheets of veneer destroying the supervisor‘s
credibility.
Employers now had begun to think of the ways to develop better relations with the
employees and to keep them satisfied and motivated. In 1890 and 1900 many
companies started the welfare programs for the employees which began later to be
known as paternalism. In the 1930s, these welfare programs evolved in many fringe
benefits to provide security to the employees which resulted in the development of the

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Custodial model of organizational behavior.
A successful custodial approach depends on providing economic security which many
companies are now offering as high pay scale, remunerations in the form of health
benefits, corporate cars, financial packaging and many other forms of incentives. These
incentives increase the employees‘ satisfaction level and help them to achieve
competitive advantage. To avoid layoffs employers also tries to ―retain employees,
reduce overtime, freeze hiring, encourage both the job transfers and relocations, provide
early retirement incentives, and reduce subcontracting to adjust to slowdowns especially
in the information technology‖. (Newstrom, p.32)
The custodial approach induces employees now to show their dependency and loyalty
towards the company and not to the boss or managers or supervisors. The employees in
this environment are more psychologically contended and preoccupied with their
rewards but it is not necessary they would be strongly motivated to give the
performance. The studies show that though it has been the best way to make them happy
employee but not productive employee, so the question still remains what should be the
better way? But overall this step had been a stepping stone for the creation and
development of the next step.
Supportive Model
Unlike the two previous approaches, the supportive model emphasis on motivated and
aspiring leader. There is no space for any control or authoritative power in this model or
on the incentives or reward schemes but it is simply based on motivating staff through
the establishment of the manager and employee relationship and the treatment that is
given to employees on daily basis.
Quite contrarily to the autocratic mode, it states that employees are self-motivated and
can generate value that goes beyond their day to day role or activity. But how the
employees get self –motivated? That‘s through creating a positive workplacewhere they
are encouraged to give their ideas and there is some kind of ―buy -in‖ in the
organizational behavior setup and the direction that it takes.
One of the key aspects of the supportive model has been studies conducted at the
Hawthorne Plant of Electric in the 1920s and 1930s. The study was led by Elton Mayo
and F.J Roethlisberger to implore on the human behavior at work by implementing and

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placing keen insight on the sociological, psychological perspective in the industrial
setup. They came up to a conclusion that a single organization is a social system and a
worker is an important component in the system. They found that worker is not a tool
that can be used in any way but has its own behavior and personality and needs to be
understood. They suggested that understanding of group dynamism including the
application of supportive supervision is imperative to make workers contribute and be
supportive.
Through the leadership organizations give the space and climate for the employees to
develop, form their own thinking and take an initiative. They would take responsibility
and improve themselves. Managers are oriented towards supporting the employees to
give performances and not just support them through employee benefits as done in
custodial approach.
The supportive model is being widely accepted chiefly in the developed nations where
the needs of the employees are different as it fulfills many of the employees emerging
needs. This approach is less successful in the developing nations where the social and
economic need of the working class is different. In short, in the supportive model
money is not which retain the satisfaction of the employees but it is a part of the
organization‘s life that has been put to the use and makes other people feel wanted.
The Collegial Model
In this scheme, the structure of an organization is developed in a way that there is no
boss nor subordinates, but all are colleagues who have to work as a team. Each one of
the employees has to participate and work in coordination with each other to achieve the
target rate. No one is worried about his status or a job title. Manager‘s role is here like
a coach whose function is to guide the team to perform and generate positive and
motivating work environment, instead of focusing on his own personal growth. The
team requires adopting new approaches, research and development and new
technologies to better their performance.
We can also say Collegial model is an extension of the supportive model. The success of
the collegial model depends on the management‘s ability to foster the feeling of
partnership between the employees. This makes the employees feel important and
needed. They also feel that managers are not just mere supervisors but are also giving

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their equal contribution to the team.
To make the collegial model success many organizations have abolished the use of
bosses and subordinates during working, as these terms create the distance between the
managers and subordinates. While some of the organizations have abolished the system
of allotting reserved space for executives. Now any employee can park their vehicle in
the common parking space, which increases their convenience and makes them more
comfortable.
The manager is oriented towards the team performance while each employee is
responsible for his task and towards each other. They are more disciplined and work as
per the standards set by the team. In this setup employees feel fulfilled as their
contribution is accepted and well received.
The System Model
The most emerging model of the today‘s corporate era is the system model. This model
emerged from the rigorous research to attain the higher level of meaning at work.
Today‘s employees need more than salary and security from their job, they need the
hours they are putting towards the organization is giving them some value and
meaning. To add to it, they need the work that is ethical, respectful, integrated with
trust and integrity and gives a space to develop a community feeling among the co-
workers.
In the system model, the expectations of the managers are much more than getting the
work done by the employees. The managers have to show their emotional side, be more
compassionate and caring towards their team and they must be sensitive towards the
needs of the diverse workforce. They have to devote their attention to creating the
feeling of optimism, hope, trustworthiness, courage, self-determination, and through
this, they try to develop the positive work culture where the employees feel more at ease
and work as if they are working for their family. This ultimately results in the long time
commitment and loyalty of the employees and the success of the company.
Managers also try to foster two main concepts; authenticity and transparency and social
intelligence. Managers always try to make the employees feel the part of the project
and the organization and give them all the support so that they can increase their
efficiency and output. In turn, the employees feel more emotionally and

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psychologically part of the organization and become more responsible for their actions.
Employees feel more inspired, motivated, important and feel that what they are doing
and what they think would be good for the organization which goes beyond their
personal achievements.
The models have been originated perceiving the changing employee needs with each
model have been the stepping stone for the more productive and useful model. To
assume that any one of the models has been the best model is wrong as no model is
hundred percent perfect but have been evolving all through the years with the changes in
our perception, study and social conditions that have been affecting the human
behavior. Any of the above models can be modified, applied and extended in many
different ways. As there has been advancement in the collective understanding of the
human behavior, the new social condition emerged and with it there has been an
evolution of the new model.

THEORETICAL FRAMEWORKS OF ORGANIZATIONAL BEHAVIOR

OB is the study of behavior which are not visible. Hence some theories and concepts are
developed related to thinking and using the concepts to explain human behavior and to
give a framework to understand predict and manage the behavior of people at
organization.
There are three conceptual framework :
1. Cognitive Framework
2. Behavioristic Framework
3. Social Cognitive Framework
Cognitive Framework
Cognitive approach emphasizes the positive and freewill aspects of human behavior and
uses concepts such as expectancy, demand, and intention. Cognition can be simply
defined as the act of knowing an item of information. In cognitive framework,
cognitions precede behavior and constitute input into the person’s thinking,
perception, problem solving, and information processing. The work of Edward
Tolman can be used to represent the cognitive theoretical approach. According to
Tolman, learning consists of the expectancy that a particular event will lead to a

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particular consequence. This cognitive concept of expectancy implies that organism is
thinking about, or is conscious or aware of the goal and result of a behavior exhibited by
it. It means that a person desires a goal and also knows the behavior that will lead
to achievement of the goals.
In the subject of organizational behavior, cognitive approach dominates the units of
analysis such as perception, personality and attitudes, motivation, behavioral decision
making and goal setting.

Behavioristic Framework
Pioneer behaviorists Ivan Pavlov and Jon B. Watson stressed the importance of
studying observable behaviors instead of the elusive mind. They advocated that
behavior could be best understood in terms of stimulus and response (S-R). They
examined the impact of stimulus and felt that learning occurred when the S-R
connection was made. Modern behaviorism, that marks its beginning with B.F. Skinner,
advocates that behavior in response to a stimulus is contingent on environmental
consequences. Thus, it is important to note that behaviortistic approach is based on
observable behavior and environmental variables (which are also observable).

Social Cognitive Framework

Social learning theory takes the position that behavior can best be explained in terms of
a continuous reciprocal interaction among cognitive, behavioral, and environmental
determinants. The person and the environmental situation do not function as
independent units but, in conjunction with behavior itself, reciprocally interact to
determine behavior. It means that cognitive variables and environmental variables are
relevant, but the experiences generated by previous behavior also partly determine what
a person becomes and can do, which, in turn, affects subsequently behavior. A persons
cognition or understanding changes according to the experience of consequences of
past behavior.
Bandura developed social learning theory into the more comprehensive social cognitive
theory (SCT). Stajkovic and Luthans have translated this SCT into the theoretical
framework for organizational behavior. Social cognitive theory recognizes the

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 importance of behaviorism‘s contingent environmental consequences, but also
includes cognitive processes of self regulation. The social part acknowledges the
social origins of much of human thought and action (what individual learns from
society), whereas the cognitive portion recognizes the influential contribution of
thought processes to human motivation, attitudes, and action. In social cognitive
theoretical framework, organizational participants are at the same time both
products and producers of their personality, respective environments, and
behaviors. The participants as a group of produce the environment, every individual
is a product of the enironment and through his behavior changes the environment
for others as well as for himself, every individual is a product of his personality, but
also influences his personality as consequence of results of his behavior.


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