ORGANISATIONAL BEHAVIOUR

UNIT-1
Organizational behavior (OB) is the study of how people behave in
organizations, and how those interactions impact the organization's
performance
Def. of OB:
According to Keith Davis “organizational behavior is the study and application
of knowledge about how people act within organizations. It is human tool for
the human benefit. It applies broadly to behavior of people in all type of
organization such as business, government, schools, etc.
According to Fred Luthans “Organizational behaviour is directly concerned
with the understanding, production and control of human behaviour in
organizations.”
K Aswathappa, defines “OB is the study of human behaviour in organisational
setting, of the interface between human behaviour and organisation and of
the organisation itself.”
OBJECTIVES OF ORGANIZATIONAL BEHAVIOR
There are many objectives of organizational behavior some are given below:
• To establish a social system in the organization.
• To determine the motivation level of employees.
• To encourage the people, to work enthusiastically in the organization.
• To create an environment for the development of effective leadership.
• To develop effective group behaviour among the employees.
• To identify the reasons for conflict and to resolve the conflict.
• To increase the morale of employees of the organization.
• To maintain the organizational environment favorable for the work.

Nature of Organizational Behavior:

Multidisciplinary: Organizational Behavior draws insights from various disciplines such as
psychology, sociology, anthropology, and management. This multidisciplinary approach helps
in gaining a comprehensive understanding of human behavior in organizations.
Systematic Study: OB relies on a systematic and scientific approach to study organizational
phenomena. Researchers use empirical evidence and data to analyze and understand
patterns of behavior within organizations
Applied Science: While OB is grounded in academic research, its ultimate goal is to provide
practical solutions to real-world organizational problems. It seeks to apply theories and
concepts to enhance organizational effectiveness and improve the quality of work life.
Applied Science: While OB is grounded in academic research, its ultimate goal is to
provide practical solutions to real-world organizational problems. It seeks to apply
theories and concepts to enhance organizational effectiveness and improve the quality
of work life.
Contingency Approach: OB recognizes that there is no one-size-fits-all solution to
organizational challenges. The contingency approach suggests that the effectiveness of
organizational practices depends on the specific situation, context, and environment.
Organizational culture :
OB studies the role of organizational culture in shaping employee behaviour and
attitude.
Behavioural change and development:
OB explores strategies for managing and improving employee behaviour and
performance through interventions, training programs, leadership development
initiatives and organisational change efforts.
Global Perspective:
In todays inter connected world, OB considers the impact of globalisation on OB.
It examines how cultural diversity , cross cultural communication and global work
practices influence behaviour and performance in multinational organisations.
Scope of Organizational Behavior:
Individual Behavior: OB examines individual characteristics such as personality, perception,
motivation, and learning, and how these factors influence employee behavior and
performance.
Group Behavior: The study of group dynamics and team effectiveness is a significant aspect
of OB. It explores how teams form, communicate, make decisions, and impact overall
organizational success.
Organizational Structure and Culture: OB investigates how organizational structure and
culture influence behavior. It looks at the impact of leadership, communication channels,
and the formal and informal aspects of organizational culture.
Change Management: In a dynamic business environment, change is inevitable. OB plays a
crucial role in understanding and managing organizational change, addressing resistance,
and facilitating smooth transitions.
Workplace Diversity: With an increasing focus on diversity and inclusion, OB explores how
differences in age, gender, ethnicity, and other factors affect organizational behavior and
performance.
Employee Well-being: OB is concerned with understanding and improving the quality of
work life. This includes examining factors like job satisfaction, stress, and work-life balance.
Leadership and power:
OB explores leadership styles influence tactics, power dynamics and managerial behaviour
with in organisations.
It investigates how leaders motivate employees, foster innovation, manage change and
create positive work environment.
Organizational behavior (OB) has many functions, including:
•Understanding human behavior: OB helps to understand how people and groups act in
organizations.
•Predicting behavior: OB helps to anticipate how people will react to changes, policies, and
managerial actions.
•Controlling and influencing behavior: OB helps to develop strategies to guide and influence
employee behavior to achieve organizational goals.
•Improving organizational effectiveness: OB helps to improve employee satisfaction,
productivity, and innovation through better management of human resources.
•Facilitating organizational change: OB helps to effectively manage change processes and help
organizations adapt to new conditions and challenges.
•Building better relationships: OB helps to build better relationships by achieving
organizational, people, and social objectives.
•Improving goodwill: OB helps to improve the goodwill of the organization.
•Optimizing resource utilization: OB helps to make optimum utilization of resources.
•Motivating: OB helps to facilitate motivation.
•Increasing efficiency: OB leads to higher efficiency.
OB is multidisciplinary and applies different theories, methods, and techniques to
evaluate performances.
1.Identification and Division of Work:
The process of organising starts with the identification and division of work. The whole work
is to be divided into manageable activities so that duplication is avoided and work can be
completed as per predetermined goals.
2. Departmentalisation:
Departmentalisation refers to the process of grouping the activities of similar nature under
same departments. This facilitates specialisation and coordination in the organisation.
3. Assignment of Duties:
Once the departments have been formed; the next step is to assign the work to the
employees according to their skills and competencies. In order to ensure effective
performance in an organization, it is essential that a balance is created between the nature
of a job and ability of the employee responsible for that job.
4. Establishing Reporting Relationships:
Establishing responsibility relationships in an organisation structure implies the allocation of
authority and responsibility among employees of the enterprise in such a way that each
person should know who is responsible to whom and for whom and for what.
5. Integration: All groups of activities must be properly integrated. This can be achieved in
the following ways: through relationship of authority: horizontal, vertical or lateral.
The unity of objectives can be achieved along with teamwork and team spirit by the
integration process of different activities.
Process of Organizing
Organizing is the process by which managers bring order out of chaos and create proper
conditions for effective teamwork. Organizing involves the following interrelated steps:

a. Objectives: Every organization must have objectives. Therefore, every management

essentially has to identify the objectives before starting any activity.
b. Activities: Identifying and grouping several activities is an important process. If
individuals of the groups are to pool their efforts effectively, there must be proper division
of the major activities. Each and every job must be properly classified and grouped.
c. Duty: Every individual needs to be allotted his duty. After classifying and grouping the
activities into various jobs, they should be allotted to the individuals so that they perform
them effectively. Every individual should be given a specific job to do according to his
ability. He may also be given adequate responsibility to do the job allotted to him.
d. Relationship: Many individuals work in an organization. It is the responsibility of
management to lay down the structure of relationships in the organization and authority
e. Integration: All groups of activities must be properly integrated. This can be achieved in
the following ways: through relationship of authority: horizontal, vertical or lateral.
The unity of objectives can be achieved along with teamwork and team spirit by the
integration process of different activities.
Making Organising Effective:
Here are some ways to make an organization more effective:
Communication:
Effective communication is important for collaboration and can be achieved by articulating
ideas clearly, listening actively, and conveying information concisely and persuasively.
Organizational culture:
Organizational culture is the shared values, beliefs, and understandings that guide
employee practices, such as behaviour, decision-making, and motivation.
Change management:
Effective change management strategies plan for the transition from the current state to a
desired future state, with the goal of minimizing resistance and ensuring a smooth
transition.
Conflict resolution:
Organizational Behaviour Management (OBM) can help managers address and resolve
conflicts constructively by equipping them with tools to understand behavioural dynamics.
Decision-making:
Organizational Behaviour (OB) insights can help leaders make informed decisions that
benefit the organization.
Employee satisfaction
Positive perceptions about the work environment, leadership, and team dynamics can
contribute to higher job satisfaction and employee retention.
Organizational structure
Organizational structure forms the basis of interpersonal relations between those leading
and those being led.
Effective leadership
Leaders who empower employees by giving them the freedom they need to do the work
that's best for them tend to build stronger relationships and create productive work
environments.
Understanding Individual Behaviour:
Individual behaviour is how an employee or individual acts in a given environment. It is
influenced by the person, the environment, and the organization itself.
Here are some things to consider when understanding individual behaviour in
organizational behaviour:
Individual differences
Every employee has their own way of behaving. These differences are important for
managers to understand because they affect an employee's thoughts, feelings, and
behaviour.
Factors that affect behaviour
These include physical factors like age, health, and illness, as well as personal and emotional
factors like personality, beliefs, and emotions.
The Theory of Individual Behaviour
This theory suggests that business decisions are made based on individual preferences,
constraints, and rationality.
The four variables of individual behaviour
These are motivation, ability, role perceptions, and situational factors. They are represented
by the acronym MARS.
Understanding individual behaviour can help managers:
Understand the organizational impacts of individual and group behaviours
Motivate their subordinates more effectively
Improve relationships between management and employees
Predict, control, and influence employee behaviour