CHAPTER ONE

1.1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR

DEFINITION
Organization behaviour is defined as social inventions for accomplishing goals through
group efforts. Organization behaviour is a field of study that investigate the impact of
individuals, groups and structure on behaviour within organizations. The aim is to apply
such knowledge toward improving organizational effectiveness. In addition, there are
three significant aspects in the above definition, which is Social Inventions,
Accomplishing Goals and Group Effort. Organizational behaviour is concerned with
peoples thoughts, feelings, emotions and actions in setting up a work. Understanding
individual behaviour is in itself a challenge, but understanding group behaviour in an
organizational environment is a monumental management task. Organizational
behaviour examines is the characteristics and behaviour of employees in isolation, the
characteristics and processes that are part of the organization itself and the
characteristics and behaviours directly resulting from people with their individual needs
and motivations working within the structure of the organization.
Goals of Organizational Behaviour
There are some goals of organizational behavior which are as follows:
Describe: The first goal is to describe, systematically how people behave under a
variety of conditions. Achieving this goal allows managers to communicate about human
behavior at work using a common language.
Understand: A second goal is to understand any people behave as they do. The
managers would be frustrated if they could talk about behavior of their employees, but
not understand the reasons behind those actions.

Predict: The managers would have capacity to predict which employees might be
dedicated and productive or which ones might have absent, cause problem. And thus
the managers could take preventive actions.
Control: The final goal of OB is to control and develop some human activity at work.
Since managers are held responsible for performance outcome, they are vitally
interested in being able to make an impact on employee behavior, skill development,
team effort, and productivity. Managers need to be able to improve results through the
actions they and their employees take, and organizational behavior can aid them in their
pursuit of this goal.
Importance of Organizational Behaviour
Importance of organizational behaviour has four importance. The first one that include is
developing interpersonal skills. An essential requirement for entering into, surviving and
succeeding in the modern workplace is to have the right people with the appropriate
skills. Most importantly interpersonal skill, which can be obtained through organizational
behaviour exposure. Second, it is personal development through organizational
behaviour. A person has to understand him or herself before understanding others.
Being able to understand others lead to personal development for the individual and can
also lead to enhanced self-knowledge and self-insight. Organizational behaviour
exposes people to self-concept leading so as to better understand the people around
them. Third, it is achieving organizational and individual effectiveness. An importance
goal of organizational behaviour is to improve organizational effectiveness. Lastly is
sharpening and refining our decisions and actions. Organizational behaviour sharpens
and expands our common sense into making good decisions that are reflected in our
actions.

Forces or Elements of Organizational Behaviour

Organizational behaviour is defined as the study of human behaviour in organizational
settings, the interface between human behaviour and the organizational context, and
the organization itself, It is emphasized here that organizations function relying on
some elements. Organizations operate their functional activities by some elements,
which affect organizations.
People: People make up the internal social system in the organization. They consist of
individuals and groups. Groups may be large or small, formal and informal, official or
unofficial. Human organization changes every day. People are living, thinking and
feeling beings that created the organization and try to achieve the objectives and goals.
Structure: Structure defines the formal relationship and use of people in the
organization. Different people in an organization are given different roles and they have
certain relationship with others. Those people have to be related in some structural way
so that their work can be effectively coordinated.
Technology: The technology imparts the physical and economic conditions within
which people work. With their bare hands people can do nothing. So they are given
assistance of building, machines, tools, processes and resources. The nature of
technology depends very much on the nature of the organization, influences the work or
working conditions.
Social System: Social system provide external environment within which organization
operates. A single organization cannot exist alone. It is a part of the whole. A single
organization cannot give everything and therefore there are many other organizations.
All these organizations influence each other.

1.2 EVOLUTION OF ORGANIZATIONAL BEHAVIOUR

Scientific Management Approach

It was develop by Frederick Winslow Taylor In the beginning of the 20TH century. This
theory supported the use of certain steps in scientifically studying each element of a job,
selecting and training the best worked for the job and making sure that the worker follow
the prescribed method of doing the job.
Bureaucratic Approach
Max weber proposed a bureaucratic form of structure, which he thought would work for
all organizations. This idea of bureaucracy was logical, rational and efficient. He made
the nave assumption that one structure would work best for all organization.
Hawthorne Studies
A group of professor began an enquiry into the human aspects of work and working
conditions at the Hawthorne plant of Western Electric Company, Chicago and the
findings of these studies were given a new name human relation. The workers are
influenced by social factors and the behavior of the individual worker Is determined by
the group but their impact on the emerging field of organizational behavior was
dramatic. They helped to usher in a more humanity-centric approach to work.

BASIC ORGANIZATIONAL BEHAVIOR MODELS

The Autocratic Model

It is depends on power which mean that an employee must follow orders given or else
they will be penalized. In autocratic environment the managerial orientation is formal,
official authority which is is delegated by right of command over the people to it applies.
In this environment, what is paramount for the employee is obedience to a boss and not
respect for a manager

The Custodial Model

A successful custodial depends on economic resources. The resulting managerial
orientation focused toward money to pay wages and benefits. If an organizational does
not have the wealth to provide pensions, and pay other benefits, it cannot follow a
custodial approach because custodial approach leads to employee dependence on the
organization or rather than being dependent on their boss for their daily bread,
employees now depend on organization for their security and welfare.
The Supportive Model
It depends on leadership instead of power on money by through leadership,
management provides a climate to help employees grow and accomplish, in the
interests of organization, the things of which they are capable. The leader assumes that
workers are not by nature passive and resistant to organizational needs, but that they
are actually made so by an inadequately supportive climate at work.

The Collegial Model

It depends on managements building a feeling of partnership with employees. The
result Is that employees feel needed and useful because they fell that the managers
also are contributing, and that makes it is easier to accept and respect their role in their
organization. Managers are seen as joint contributors rather than as bosses.

The System Model

It is merged because of a strong search for higher meaning at work by many of todays
employees that they want more than just a paycheck and job security from their jobs. To
accomplish this, manager must increasingly demonstrate a sense of care and
compassion, being sensitive to the needs of a diverse workforce with rapidly changing
needs and complex personal and family needs. Many employees embrace the goal of
organizational effectiveness and recognize the mutuality of company-employee
obligations in a system viewpoint.

1.3 FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL BEHAVIOUR

These concepts are divided into two:
1. Nature of People
i. Individual differences
Employees are different not only in the physical appearance such as
sex, age, height, weight, complexion and so on but also different in
their psychological trait such as intelligence, attitude, motivation,
personality, needs, and perceptions.
Individual differences mean that the management has to treat them
ii.

differently to get the best out of them.

Whole Person
The organization may feel that they are employing only the individuals
skill or intelligence; they are fact employing the whole person.
This means that individual not only comes with the skills and

iii.

intelligence but also a personal life, needs and desires.

Motivated behavior
Motivated behavior is the urge of the individual to satisfy of particular
needs that motivates him to do an act.
Motivation could be positive or negative.
Some motivations are needed to enrich the quality of work.
Sometimes, people are motivated not by what others think they ought

iv.

to have but by what they themselves want.

Human Dignity or Value of the Person.
This is more an ethical philosophy.
People want to be treated with care, dignity and respect and,
increasingly, they are demanding such treatment from their employers.
They want to be valued for their skills and abilities and to be provided
with opportunities to develop themselves.

2. Nature of Organization
i.
Social system
A system is a group of independent and interrelated elements
comprising a unified whole.

 The individual of a society are considered as a system organized by a

characteristic pattern of relationships with a distinctive culture and
ii.

values.
Mutual interest
Organizations needs employees to reach its objectives and people
need organizations to help them reach individual needs and
objectives.
Mutual interest provides a superordinate goal one that can be attained
only though the integrated efforts of individuals and their employees.

Holistic Organization Behaviour

Holistic organizational behavior interprets people organization relationship in
terms of the whole person, whole organization and whole social system.
Thus blending of the nature of people and that of the organization together
results in a holistic organizational behavior.

1.4: APPROACHES TO ORGANIZATIONAL BEHAVIOUR

The five basic approaches are:

Human Resources Approach

This approach recognizes the fact that people are the central resource in any
organization and that they should be developed towards higher levels of competency,
creativity, and fulfillment. People thus developed will contribute to the success of the
organization. The human resources approach is also called as the supportive approach
in the sense that he managers role changes from control of employee to active support
of their growth and performance.
The supportive approach contrasts with the traditional management approach. In the
traditional approach managers decide what employees should do and closely monitored
their performance to ensure task accomplishment. In the human resources approach,
role of managers changes, as was stated above, from structuring and controlling to
supporting.
Contingency Approach
The contingency approach is based on the premise that methods or behaviors which
work effectively in one situation fail in another. For example, way work brilliantly in one
situation but fail miserably in another situation. Results differ because situations differ,
the managers task, therefore, is to identity which method will, in a particular situation,
under particular circumstances, and at a particular time, best contribute to the
attainment of organizations goals. The strength of the contingency approach lies in the
fact it encourages analysis of each situation prior to action while at the same time
discourages habitual practice of universal assumption about methods and people.

Productivity Approach
Productivity which is the ratio of output to input, is a measure of an organizations
effectiveness. It also reveals managers efficiency in optimizing resource utilization. The
higher the numerical value of this ratio, the greater the efficiency. Productivity is
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generally measured in terms of economic input and outputs, but human and social
inputs and outputs also are important. For example, if better organizational behavior can
improve job satisfaction, a human output of benefit occurs.
In the same manner, when employee development programmers lead to by a product of
better citizens min a community, a valuable social output occurs. Organizational
behavior decisions typically involve human, social, and economic issues, and so
productivity usually a significant part of these decisions is recognized and discusses
extensively in the literature on Organizational Behavior.
Systems Approach
Systems approach to Organization behavior views the organization as a united,
purposeful system composed of interrelated parts. This approach gives managers a
way of looking at the organization as a whole, whole person, whole group, and the
whole social system.
In so doing, systems approach tells us that the activity of any segment of an
organization affects, in varying degrees the activity of every other segment. A systems
view should be the concern of every person in an organization. The clerk at a service
counter, the machinist, and the man-ager-all work with the people and thereby influence
the behavioral quality of life in an organization and its inputs. Managers however, tend
to have larger responsibility, because they are the ones who make majority are peopleoriented.

Interdisciplinary Approach
In organization, there are people from different disciplines working together. The
interdisciplinary approach advocates that efficiency can be attained by finding the right
methods to get the job done through specialization on the job, by planning and
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scheduling, by using standard operating mechanisms, establishing standard times to do

the job, by proper selection and training of personnel and through wage incentives.
Interdisciplinary approach work to create connection between one person to another
person that have different discipline to work together even at the first time their work
together have many disputes but with the good manager to establish good working
environment will make their become good relationship. For example, knowledge could
help managers to deal with people at work in order to function as a whole social unit.

1.5 ORGANIZATIONAL BEHAVIOUR, GLOBALIZATION AND DIVERSIFICATION

The social, political, economic, cultural and workforce differences among countries
influence international organizational behavior in various ways.

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i.

SOCIAL CONDITIONS
In many countries, due to poorly developed resources there is shortage of
managerial personnel, scientists and technicians. Hence the required skills must
be temporarily imported from other countries and training programs need to be
developed to train the local workers.
The social dimension of globalization refers to the impact of globalization on the
life and work of people, on their families and their societies. Concerns and issues
are often raised about the impact of globalization on employment, working
conditions, income and social dimension encompasses security, culture and
identity, inclusion or exclusion and the cohesiveness of families and
communities.

i.

POLITICAL CONDITIONS
Political conditions that significantly affect organizational behavior include
instability of the government, restricting industries to a particular area and
nationalistic drives such as self-sufficiency in latest technologies.
In some nations, organized labor is mostly an arm of the authoritarian state and
in some other nations labor is somewhat independent in some nations, the state
tends to be involved in collective bargaining and other practices that affect
workers. For example, workers participation in management may be restricted by
law while in other countries they are permitted.
Moreover, a globalized political system can cause a conflict of ideologies. The
world is still a rather diverse place, with different countries rooting for different
ways of governing such as capitalism, communism, or democracy. It can bring
about political tension when powerful countries are trying to spread their
ideologies as the case between china and the United States in 2011.

ii.

ECONOMIC CONDITIONS
The most significant economic conditions in less developed nations are low per
capital income and rapid inflation. The inflation makes the economic life of
workers insecure when compared to developed countries. Economic
globalization gives governments of developing nations access to foreign lending.
When these funds are used on infrastructure including roads, health care,
education and social services, the standard of living in the country increases. If
the money is used only selectively, however, not all citizens will participate in the
benefits.
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The influxes of foreign companies into developing countries increase

employment in many sectors, especially for skilled workers. However,
improvements in technology come with the new businesses and that technology
spreads to domestic companies. Automation in the manufacturing and
agricultural sectors lessens the need for unskilled labor and unemployment rises
in those sectors. If there is no infrastructure to help the unemployed train for the
globalized economy, social services in the country may become strained trying to
care for the new underclass.
iii.

CULTURAL DIFFERENCES IN AN ORGANIZATION

Changes in the global marketplace have brought the need to think globally. The
cultural paradigm comprises various beliefs, values, rituals and symbols that
govern the operating style of the people within a company.
The dominant culture in organizations depends on the environment in which the
company operates, the organization objective, the belief system of the
employees and the company management style. Therefore, there are many
organizational cultures. For example, highly bureaucratic and well-structured
organizations typically follow a culture with extensive controls.
Strong corporate cultures indicate that employees are like-minded and hold
similar beliefs and ethical values. When these beliefs and ethical values align
with business objectives, they can prove to be effective in building teams
because rapport and trust quickly ensues. The bonds that the teams build help
them avoid conflicts and focus on task completion.
Organization cultures can have varying impacts on employee performance and
motivation levels. Different cultures operating in one company can also impact
employee performance. For example, if the organization maintains a reserved
talk when necessary cultures, employee may work accordingly, however if the
organization allows one area, say the sales team, to be outspoken and socially
active, the organization may experience rivalries among areas. Thus, allowing an
area to set up their own culture can affect the performance of the employees
deployed elsewhere in the company.

iv.

WORKFORCE DIVERSIFICATION
Workforce diversity has always been an important issue for organizations.
Diversity refers that the recognition and appreciation of including individuals with
characteristics and traits that make them unique. This may include differences in
age, sex, race, ethnicity, religion physical and even mental abilities. As a concept,
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diversity is considered to be inclusive of everyone. In many ways, diversity

initiatives complement non-discrimination compliance programs by creating the
workplace environment and organizational culture for making differences work.
There are several factors that may lead to diversification, it is done as a social
responsibility or economic payback, as diversity gives to the social groups who
are challenged with finding jobs due to issues such as discrimination. In this way,
employer willingness to diversity gives such persons the break they need.
Diversifying the workplace may also turn tax users into taxpayers.
However diversity in the workforce will inevitably have an impact on the
organization. Workforce diversity management is needed to ensure that the
influence of diversity is a positive one. Managing diversity is understanding that
there are differences among employees and that their differences, if properly
managed are an asset to work being done more efficiently and effectively.

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