Session 1 :

Organizational
Behaviour

By : Prof . Tanu
 IMM-208: ORGANIZATIONAL BEHAVIOUR
MODULE OVERVIEW
Session Topics
Session 1 Introduction to the Course, Personality and Individual Differences
Session 2 Attitudes, Values and Job satisfaction
Session 3 Group Dynamics and Behavior
Session 4 Perception
Session 5 Motivation
Session 6 Learning and Behavior Modification
Session 7 Creativity and Innovation in Organizations
Session 8 Communication and Transactional Analysis
Session 9 Conflict
Session10 Objectives and styles of Organizational Leadership
Session 11 Leadership theories
Session 12 Power, Authority & Politics
Session 13 Emotional Intelligence
Session 14 Stress Management
Organizational Culture
2 Session 15
 Text Books:
■ Robbins and Sanghi –Organizational Behavior (Pearson Education
10th Edition )
Reference:
■ Fred Luthans: Organizational Behavior(McGraw-Hill,12 th Edition )

■ Understanding organizational behavior, (3e 3rd edition Oxford

Publishing House ) Udai Pareek and Sushma Khanna

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 Assessment Process Marks

1 Attendance 15
Class Participation
Discipline

2 Assignments / Quizzes /Internal Tests 20

 
3 Projects and Presentations 15

4 Final Exams 50

Total 100

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 1. Introduction to OB
- Overview and Definition of OB
- Historical Roots of OB
- Contributing Disciplines to OB
- Challenges and Opportunities for OB: Managing
Workforce Diversity
- OB Model
- Activities
- Case Study
An organization is a collection of people who work
together to achieve individual and organizational
goals.

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 Organization may be studied from 2 perspectives

Micro Perspective
Focuses on Human being as
a individual
Macro Perspective
Individual psychological Focuses on Organization as a
makeup, his interaction with unit
other individuals & groups, Study of human behaviour as
variables determining his a collectively of people &
behaviour. deals with how org. is
structured, how technology
affects people in the org., &
how org. interacts with its
environment.

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 ■ According to Mooney and Reiley “Organization is the form of every
human association for the attainment of a common purpose.”
■ In other words, Organization is simply people or a group of people
working together for a common goal.
■ A consciously coordinated social unit, composed of two or more
people , that function on a relatively continuous basis to achieve a
common goal or set of goals
■ Groups of people who work interdependently toward some purpose
□ Structured patterns of interaction
□ Coordinated tasks
□ Work toward some purpose.

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 The way in which one acts or conducts oneself,
especially towards others.
■ What they do ?
■ How they do ?
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 Elements of Behaviour
Behavior is a function of the person and the environment,
B = f (P, E).

The study of Organizational Behavior facilitates the process of

explaining, understanding, predicting, maintaining, and changing
employee behavior in an organizational setting.

To facilitate the study of Organizational Behavior, we will look at

human behavior in the organization from three perspectives.

Organizational Level

Individual
Level
Group Level
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 The field of study that investigates the impact that
individuals, group, and structure have on behavior within
organization, for the purpose of applying such knowledge
towards improving an organization's effectiveness. ( S.P
Robbins)

Organisational Behaviour (OB) an interdisciplinary

behavioural science studies phenomena and dynamics
(processes) of organisations relates these processes
to their various human units individuals, roles, dyads,
teams, inter teams, organizations and organization
environment interface ( Udia Pareek )

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 ■ Organizational behavior (OB): the study of factors that
have an impact on how people and groups act, think, feel,
and respond to work and organizations, and how
organizations respond to their environments

OB helps us understand questions like:

■ Why are some motivated to join an organization while
others are not?
■ Why do some people feel good or bad about their jobs?
■ Why do some people stay with an organization for 30
years while others change jobs regularly?

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What is Organizational Behavior?

Insert Figure 1.1 here

 ■ Definition: According to Aldag & Brief “ OB is a Branch of social
sciences that seeks to build theories that can be applied to predicting,
understanding and controlling behavior in work organization.”

■ O + B = OB
■ Organization + Behavior = Organizational Behavior

■ Integration of Study of Human Behavior in the groups

What they do? Various Individual & structure
How they do ? organization

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 A Field of Study, not a Discipline

Interdisciplinary Approach

An applied Science

Normative & Value centered

Humanistic & Optimistic

Oriented towards Organizational Objectives

A total systems approach

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 Contributing Disciplines
Psychology: The science that seeks to measure, explain, and
sometimes change the behavior of humans and other animals.

Sociology : The study of people in relation to their fellow human

beings. It is a study of group behaviour.

Social Psychology: An area within psychology that blends concepts

from psychology and sociology and that focuses on the influence of
people on one another.

Anthropology :The study of societies to learn about human beings

and their activities.

Political sciences: Political sciences examines the behavior of

individuals and groups within a political environment

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 OB is multidisciplinary in nature It is, in fact, an applied behavioral science that is built on
contributions from a wide variety of social science disciplines
he Multidisciplinary Roots of OB
Discipline Relevant OB topics
■ Psychology Perception and learning, personality, emotion and stress, attitudes,
motivation, decision-making and creativity.

■ Sociology Group dynamics, socialisation, communication, intergroup behaviour,

power, conflict.

■ Social Psychology Intergroup collaboration, group decision-making, integration of individual

needs with group activities, effect of change on individuals.

■ Anthropology Organizational culture, leadership, organizational empowerment,

organizational power
■ Economics Decision-making

■ Political Science Conflict, intra-organizational politics, manipulating power for individual

self-interest.

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Toward
A Short History of Organizational Behavior
■ Three basics School of Thoughts
Classical Approaches
a. Scientific Management by Frederick W. Taylor
b. Administrative Management by Henri Fayol
c. Bureaucratic Management by Max Weber
Neo – Classical Approaches
a. Human – Relation Approach
b. Human Behavior or Human Resource approach
Modern Approach
a. System Approach
b. Contingency Approach
F.W. Taylor and
Scientific Management 1856-1915
■ Scientific management: the systematic study of relationships between people
and tasks for the purpose of redesigning the work process to increase efficiency
■ The amount of and effort each employee expends to produce a unit of output
can be reduced by increasing specialization and the division of labor
 Four Principles of Scientific Management
1. Study the way employees perform their tasks, gather informal job knowledge that
employees possess, and experiment with ways of improving the way tasks are
performed
2. Codify the new methods of performing tasks into written rules and standard
operating procedures
3. Carefully select employees so that they possess skills and abilities that match the
needs of the task, and train them to perform the task according to the established
rules and procedures
4. Establish an acceptable level of performance for a task, and then develop a pay
system that provides a reward for performance above the acceptable level
 Importance of Scientific Management

□ Advancing the method of working brings about maximum increase in productivity

□ It simplifies organizational methodology which enhances a degree of measurement across
the various functions in an organization
□ It serves as a tool of measurements to reward employees in accordance to their
productivities
□ it enhances the improvements in physical working conditions for employees

■ Limitations of Scientific Management

▫ The responsibilities of workers are limited to strict laydown procedures, thereby not
allowing workers to be innovative enough to attempt different approach and
techniques
▫ It creates more division among workers since employees are usually rewarded based
on individual result.
▫ It gives more power to managers

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 Administrative Management by Henri Fayol (1841-1925),
■ Foyal, then proceeded to initiate fourteen principles as a guiding tool for managerial roles based on
his observation of the similarity of organizational activities. These fourteen principles are illustrated
in the table below:

■ Division of work: Helps in the promotion consistency in work scheme where employees become
familiarize with operational productivity thereby reducing burdens on individuals and or groups.
■ Authority: Every given authority must come with an assigned responsibility in order to give an
instruction.
■ Discipline: the total reflection of one’s appearance must be in accordance to the set standard
between the company and its staffs.
■ Unity of command: A leader is consider as the mouth piece and superior
■ Unity of direction: A leader and a plan for a team of activities with common objective
■ Subservience of individual interests to the general interest: The collective interest of a group stands
supreme to that of an individual.

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 Remuneration: compensation, salary among other incentives must be transparent to both parties, thus the
employer and employee.

Centralisation: Base on the size and worth of management, it is very important for centralization to prevail.

Scalar chain: The link of authority from top to bottom of the organization

Order: All things, must be attended to as it is required at the right time in the right place with the right scheme

Equity: Being fair and just with everyone within an organization.

Stability of tenure of personnel: Personnel must be given the necessary time to be given time to study,
understand their responsibilities, and task.

Initiative: Every individual employee of an organization must be motivated and challenge to show their
initiative in increasing productivity.

Esprit de corps: Teamwork must be promoted and every employee needs to be encouraged to work in a team
for an effective productivity.
 
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 Importance of Administrative Approach

■ Growth and effective increment in output: Performance of the various functional

unit can easily be determined to ascertain their field of strength so as to channel all
the required resources on the team’s strength. With this approach, management can
easily ascertain the weakness of a team and directing team to focus on their strength
to increase productivity.
■ Improves both internal and external customer satisfaction: This medium
promotes the quality of work with corresponding time bounds. This leads to meeting
the needs of clients’ thereby building strong customer relationship and loyalty.
Workers become fulfilled for having utilized all the allocated resources made
available as required by task.

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 Limitations of Administrative Management

■ Almost every organization in the world is practicing this modern management approach,
however; Fayol’s idea was not simply developed to withstand the test of time. Below are
some drawbacks of Fayol’s Administrative management approach:
■ Administration centered theory

■ Inadequate appreciation of traditional set up of organization.

■ Machine-driven Approach

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 Bureaucratic Management by Max Weber (1864-1920)

■ According to Webber, bureaucratic management is the ideal management scheme for

organizations.
■ Bureaucratic Management by Weber is centralized on specialization of labor force
where performance is measured against achieved result for a reward.
■ The establishment of a bureaucratic administration is based on a set of conducts, rules,
and principles of which all workforce within an organization is to observe.
■ Weber’s theory can be considered to be the current ‘formal organization’ structure being
recognized and practiced in today’s business activities
■ There are some school of thoughts who have carefully criticize Max Weber’s theory due
to its enormous challenges such as the element of dictatorship, laboriousness and less
human relation.
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 The Hawthorne Studies
■ Hawthorne Works of the Western Electric Company; 1924-1932

■ Initiated as an attempt to investigate how characteristics of the work setting

affect employee fatigue and performance (i.e., lighting)

■ Found that productivity increased regardless of whether illumination was raised

or lowered

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 Experiment # 1 - Illumination Experiments
(1924 – 1927)

• Varied levels of illumination.

- First experiment - Two separate groups - one group – varied intensities of

illumination - second group – constant intensities of illumination

- Experiment & Result Increased illumination – both group – production

increased. Intensity of illumination – decreased – production still increase.

- Production decrease – when intensity of illumination gets to the level of

moonlight.

- Final Conclusion Illumination – No effect on productivity. Human factor is

responsible

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 Experiment # 2 – Relay Assembly Test Room Experiments (1927 – 1928)

■ Sets a relay assembly test room.

■ Two girls. Four more girls – coworkers.
■ Work – assembly of telephone relays. Output depend
– speed & continuity.
■ Two 5 min. rest later made it to 10min.
■ Frequent break decrease the rhythm of work. In the
Morning break coffee or soup served along with
sandwich.
■ In the evening break snack was provided. Change in working hours. Each change introduced
- Absenteeism Decreased - Morale Increased - Less Supervision
■ Revert back all changes – production increased of both the groups.
■ Final Result Change in Girl’s attitude – work & work group. Stability. Sense of
belongingness. More freedom of work – responsibility & self discipline.
Experiment # 3 – Mass Interviewing Experiments (1928 – 1930)

■ 21,000 interviews conducted during 1928-30.

■ Conclusion Workers behavior influenced by group behavior , the informal group . Study
started on shop situation.
Experiment # 4 – Bank Wiring Observation Room Experiments
(1931 – 1932)
• Analyze the functioning of small group & impact on individual behavior.
• 14 male workers employed - 9 wireman - 3 solder men - 2 inspectors Work - to attach wire
to switches.
• Hourly wage rate – average output of each worker. Bonus – average group output.
• Presumed hypothesis was -To earn more – produce more. To earn bonus – help each other
• Workers decided target for themselves – lower than companies.
• Reason for restricted output
Fear for unemployment.
Fear of raising the standard.
Protection of slower workers.
Satisfaction on the part of management.
The Hawthorne Studies

■ Factors influencing behavior:

□ Attention from researchers
□ Manager’s leadership approach
□ Work group norms
■ The “Hawthorne Effect”
Douglas McGregor Theory X & Y 1906-1964

Theory X Assumptions
Theory■Y Assumptions
Do not dislikework
■ Dislike work –will avoid it
■ Self direction and self
■ Must be coerced, controlled, control
directed, or threatened with ■ Seek responsibility
punishment
■ Imagination, creativity
■ Prefer direction, avoid
widely distributed
responsibility, little ambition,
want security ■ Intellectual potential only
partially utilized
 Challenges For OB
1.Responding to Globalisation

-Increased foreign Assignments

-Working with people with different cultures
-Overseeing Movements of jobs to countries with low cost
labour
-Managing people during the war on terror

2.Managing work force diversity

-Work force diversity

-Embracing diversity
-Changing demographics
-Implications: Workforce diversity has important implications for
management practice
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 Workforce Diversity

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 Challenges of OB (Cont.)

3. Improving quality and productivity

4. Improving customer service
5. Improving people skills
6. Stimulating innovation and change
7. Coping with Temporariness
8. Working in networked organizations
9. Helping employee balance work life conflict
10. Creating a positive work environment
11. Improving ethical behavior

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 Roles of a Manager

Henry Mintzberg’s Managerial Roles 1973

■ Discovered ten managerial roles each role defined as an organised

collection of behaviours belonging to an identifiable function or
position. He separated these roles into three subcategories:
■ Separated into three groups:
□ Interpersonal
□ Informational
□ Decisional

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 Interpersonal Role
Figurehead: the manager performs ceremonial and symbolic duties as head
of the organisation
Leader: fosters a proper work atmosphere and motivates and develops
subordinates
Liasion: develops and maintains a network of external contacts to gather
information
Informational Role
Monitor: gathers internal and external information relevant to the
organisation
Disseminator: transmits factual and value based information to
subordinates
Spokesperson: communicates to the outside world on performance and
policies

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 Decision Making Role

Entrepreneur: designs and initiates change in the organization

Disturbance Handler: deals with unexpected events and operational
breakdowns
Resource Allocator: controls and authorizes the use of organisational
resources
Negotiator: participates in negotiation activities with other organisations
and individuals

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 Robert L. Katz’s Essential Management Skills

Decision Making Role

Entrepreneur: designs and initiates change in the organisation
Disturbance Handler: deals with unexpected events and operational
breakdowns
Resource Allocator: controls and authorizes the use of organizational
resources
Negotiator: participates in negotiation activities with other organizations
and individuals

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 Luthans’ Study of Managerial Activities

■ Is there a difference in frequency of managerial activity

between effective and successful managers?

■ Four types of managerial activity:

-Traditional Management: Decision-making, planning, and controlling.

-Communication : Exchanging routine information and processing

paperwork.

-Human Resource Management :Motivating, disciplining, managing

conflict, staffing and training.

-Networking: Socializing, politicking, and interacting with others.

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 Successful vs. Effective Allocation by Time

Managers who promoted faster (were successful) did different

things than did effective managers (those who did their jobs
well)
 Developing an OB Model
• A model is an abstraction of reality: a simplified representation of some real-world
phenomenon.
• Our OB model has three levels of analysis
– Each level is constructed on the prior level
 Types of Study Variables

Independent (X) Dependent (Y)

□ The presumed cause of the □ This is the response to X
change in the dependent (the independent variable).
variable (Y). □ It is what the OB
□ This is the variable that OB researchers want to predict
researchers manipulate to or explain.
observe the changes in Y. □ The interesting variable!

X Y Predictive Ability
Interesting OB Dependent Variables

• Deviant Workplace Behavior

– Voluntary behavior that violates significant organizational
norms and thereby threatens the well-being of the
organization and/or any of its members.

• Organizational Citizenship Behavior (OCB)

– Discretionary behavior that is not part of an employee’s
formal job requirements, but that nevertheless promotes the
effective functioning of the organization.
 More Interesting OB Dependent Variables

■ Job Satisfaction
□ A general attitude (not a behavior) toward one’s job; a positive feeling of one's
job resulting from an evaluation of its characteristics.
The Independent Variables

The independent variable (X) can be at any of these three levels in this model:
•Individual
– Biographical characteristics, personality and emotions, values and attitudes, ability,
perception, motivation, individual learning and individual decision making.
•Group
– Communication, group decision making, leadership and trust, group structure, conflict,
power and politics, and work teams.
•Organization System
– Organizational culture, human resource policies and practices, and organizational
structure and design.
 OB Model

Dependent
Three Levels Variables (Y)

Independent
Variables (X)
 Thanks!

Any questions?

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