UNIT-I

ORGANIZATIONAL BEHAVIOUR
DEFINITION
According to Stephen P. Robbins, "Organizational behavior is a field of study that
investigates the impact that individuals, groups and structure have on behavior within
organization for the purpose of applying such knowledge toward improving an organization's
effectiveness."
FOUNDAMENTAL CONCEPT
There are two fundamental concepts in organizational are the nature of people and nature
of organizations.

The Nature of People

Six basic concepts that exist in regard to people are individual differences, perception, a
whole person, motivated behavior, desire for involvement, and the value of the person.
1. Individual Differences – Starting from DNA, each person in this world is different in
a million different ways. The idea of individual difference comes from psychology
which states that each person is unique right from his birth. This diversity should be
acknowledged and considered as a valuable asset to the organization.
2. Perception - Individuals filter the input received from their environment through
perception which helps him to organize and interpret things. These different viewpoints
can be attributed to the differing personalities, needs, demographic factors and past
experiences.

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 3. A Whole Person - Organizations have to realize that fact that they are employing a
whole person rather than certain characteristic traits. Even though traits are studied
separately, the final analysis shows that they are all a part of one system making up a
whole person. It is very difficult to separate personal life from work life and emotional
states from physical states.
4. Motivated Behavior - Employees are always motivated by what they want rather that
what management thinks they ought to have. Therefore, management can motivate
employees in two different ways. It can show them certain behaviors that facilitate need
fulfillment or it can threaten to decrease need fulfillment if they involved in unwanted
behavior.
5. Desire for Involvement - It is a known fact that employees usually seek opportunities
at work to become a part of relevant decision, thereby contributing their knowledge and
skills to organization’s success.
6. Value of the Person - Organizations should acknowledge the value of skills and
abilities possessed by the employees and give them opportunities to develop themselves
and help them be in a position to make reasonably meaningful contributions.

The Nature of Organizations

1. Social Systems - With organizations being social systems, activities within them are
governed by social and psychological laws. Formal and informal social systems exist in
workplace which shows that organizational environment is dynamic in nature rather than
a static set of relations.
2. Mutual Interest – Organization have a human purpose and they are formed on the
basis of some mutuality of interest among their employees. For managers, employees are
needed to achieve organizational targets.
3. Ethics – Treating employees in an ethical way is the need of the hour since it is very
difficult to attract and retain good employees. Realizing this, organizations are
introducing variety of programs such as established code of ethics, publicized statement
of ethical values, ethics training, rewarding ethical behaviors, publicizing positive role
models and setting up internal procedures to handle misconduct to ensure higher standard
of ethical performance by managers and employees alike.

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NATURE OF ORGANIZATIONAL BEHAVIOUR
1. A separate field of study and not a discipline only
 It has assumed the status of a distinct field of study.
 It is a part of general management.
 It represents behavioral approach to management.
2. An inter-disciplinary approach
 The OB is heavily influenced by several other behavioral sciences and social sciences
like psychology, Sociology and anthropology.
 OB has psychological foundations.
 The concept like learning, perception, attitude, motivation etc. is borrowed from
psychology, sociology and anthropology.
3. A Normative Science
 Organizational behaviour is a normative science.
 A normative science prescribes how the various findings of researches can be applied to
get organizational results, which are acceptable to the society.
 Thus, what is acceptable by the society or individuals engaged in an organization is a
matter of values of the society and people concerned.
4. A Science and Art
 Organization behavior is both art and science.
 It is considered as art because it contains knowledge about behavior of individuals.
 It is considered as science because it involves application of science.
5. Humanistic and Optimistic Approach
 Organizational behaviour focuses the attention on people from humanistic point of view.
 It is based on the belief that needs and motivation of people are of high concern.
 Further, there is optimism about the innate potential of man to be independent, creative,
predictive and capable of contributing positively to the objectives of the organization.
6. Oriented towards Organizational Objectives
 Organizational behaviour is oriented towards organizational objectives.
 In fact, organizational behaviour tries to integrate both individual and organizational
objectives so that both are achieved simultaneously.

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7. A Total System Approach
 An individual's behaviour can be analyzed keeping in view his psychological framework,
interpersonal-orientation, group influence and social and cultural factors.
 Thus, individual's nature is quite complex and organizational behaviour by applying
systems approach tries to find solutions for this complexity.

SCOPE OF ORGANIZATIONAL BEHAVIOUR

Individuals
Organizations are the associations of individuals. Individuals differ in many respects. The
study of individuals, therefore, includes aspects such as personality, perception, attitudes, values,
job satisfaction, learning and motivation.
Groups of Individuals
Groups include aspects such as group dynamics, group conflicts, communication,
leadership, power and politics and the like.
Organizational Structure
The study of organizational structure includes aspects such as formation of organizational
structure, culture and change and development.

FACTORS INFLUENCING OB
EXTERNAL FORCES
1. Technology
When there is a change in technology in the organizational environment and other
organizations adopt the new technology, the organizations under focus become less cost
effective and its competitive position weakens.
2. Marketing conditions
Since every organization exports its outputs to the environment, an organization has to
face competition in the market. There may be two types of forces which may affect the
competitive position of an organization -other organizations supplying the same products
and, buyers who are not buying the product.
3. Social changes
Social changes reflect in terms of people’s aspirations, the needs, and their ways of
working. Social changes have taken place because of the several forces like level of

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 education, urbanization, feeling of autonomy, and international impact due to new
information sources.
4. Political and legal changes
Political and legal factors broadly define the activities which an oganisation can
undertake and the methods which will be followed by it in accomplishing those activities.
Any changes in these political and legal factors may affect the organization operation.
INTERNAL FORCES
It is not only the changes in external factors, which may necessitate organizational
changes; any change in organization’s internal factors may also necessitate changes. Such a
change is required because of two reasons: changes in managerial personnel and deficiency in
existing organizational practices.
1. Conflict
Conflict exists in every organization and to a certain extent indicates a healthy exchange
of ideas and creativity. However, counter-productive conflict can result in employee
dissatisfaction, reduced productivity, poor service to clients, absenteeism and increased
employee turnover, increased work-related stress or, worse case scenario, litigation based
on claims of harassment or a hostile work environment.
2. Demographic Factors
The demographic factors are socio-economic background, education, nationality, race,
age, sex, etc. Organizations prefer persons that belong to good socio-economic
background, well educated, young etc as they are believed to be performing better than
the others. The young and dynamic professionals that have good academic background
and effective communication skills are always in great demand.
3. Abilities and Skills
The physical capacity of an individual to do something can be termed as ability. Skill can
be defined as the ability to act in a way that allows a person to perform well. The
individual behavior and performance is highly influenced by ability and skills. A person
can perform well in the organisation if his abilities and skills are matched with the job
requirement.
4. Perception
The cognitive process meant for interpreting the environmental stimuli in a meaningful
way is referred to as perception. Every individual on the basis of his/he reference can
organize and interpret environmental stimuli. There are many factors that influence the

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 perception of an individual. The study of perception plays important role for the
managers.
5. Changes in the managerial personnel
Besides environmental changes there is a change in managerial personnel. Old managers
are replaced by new mangers, which necessitated because of retirement, promotion,
transfer or dismissal. Each new manager brings his own ideas and way of working in the
organization.
6. Deficiency in Existing organization
Sometimes, changes are necessary because of deficiency in the present organizational
arrangement ad process. These deficiencies may be in the form of unmanageable span of
management, large number of managerial levels, lack in co-ordination between various
departments, obstacles in communication, multiplicity of committees, lack of uniformity
in policy decisions, lack of cooperation between the line and staff, and so on.
7. Nature of the work force
The nature of work force has changed over a passage of time. Different work values have
been expressed by different generations. Workers who are in the age group of 50 plus
value loyalty to their employers.
8. To avoid developing inertia
In many cases, organizational changes take place just to avoid developing inertia or
inflexibility. Conscious manager take into account this view of organization that
organization should be dynamic because any single method is not the best tool of
management every time.

MODELS OF ORGANIZATIONAL BEHAVIOUR

AUTOCRATIC MODEL
 Depends on power
 Managerial orientation is authority.
 Employee orientation is obedience.
 Employee psychological result depends on boss.
 Employee needs met is subsistence.
 Performance result is minimum.
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Example of autocratic Model
Defense team, because here officer hold power and authority to obey them and thus
soldiers are obedient to execute officer’s order.
CUSTODIAL MODEL
 Depends on economical resource
 Managerial orientation is money
 Employee orientation is security and benefit
 Employee psychological result depends on organization
 Employee needs met is security
 Performance result is passive cooperation
Example of Custodial Model
Garments factory, because here it is based on economical resource. Here labors execute
their job for security and benefit, again here if an organization do well then employee get better
benefit.
COLLEGIAL MODEL
 Depends on partnership
 Managerial orientation is teamwork
 Employee orientation is responsible behavior
 Employee psychological result is self discipline
 Employee needs met is self actualization
 Performance result is moderate enthusiasm
Example of Collegial Model
Social organization such as willingly blood donation organization BADHON, because
here every one work as teamwork and each member takes responsibilities for organizational
goal.
SUPPORTIVE MODEL
 Depends on leadership
 Managerial orientation is support
 Employee orientation is job and performance
 Employee psychological result is participation
 Employee needs met is status and recognition
 Performance result is awakened drives

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Example of Supportive Model
Software firm, because here leaders support there employee to perform their tasks or their
project.

S-O-B-C Model
o The OB model based on the social learning approach is termed as the SOBC
model, where
o “S” stands for stimulus, “O” for organism, “B” for behavior, and “C” for
consequence.
o The S-O-B-C model gives the basic framework rather than a complete
explanation of OB.
o S – Stimulus: is an environmental variable that depicts the environmental
situation, both contextual and organizational.
o O – Organism: is a cognitive variable that understands organizational participants
which link the environmental situation and the resulting organizational behavior.
o B – Represents the organizational behavior.
o C – Consequence: is an environmental variable that depicts organizational and
group dynamics and the consequences of previous interactions between
environmental, personal and behavioral variables.
COGNITIVE MODEL
Cognitive model is act of knowing information. It is based on input (information) and
output (behaviour).
Process of Cognitive Model
o Thinking
o Perception
o Problem solving
o Information processing
REINFORCEMENT MODEL
The term reinforce means to strengthen, and is used in psychology to refer to anything
stimulus which strengthens or increases the probability of a specific response.
There are four types of reinforcement: positive, negative, punishment, and extinction.
We’ll discuss each of these and give examples.
Positive Reinforcement

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 The examples above describe what is referred to as positive reinforcement. Think of it as
adding something in order to increase a response. For example, adding a treat will
increase the response of sitting; adding praise will increase the chances of your child
cleaning his or her room. The most common types of positive reinforcement or praise and
rewards, and most of us have experienced this as both the giver and receiver.
Negative Reinforcement
Think of negative reinforcement as taking something negative away in order to increase a
response. Imagine a teenager who is nagged by his mother to take out the garbage week
after week. After complaining to his friends about the nagging, he finally one day
performs the task and to his amazement, the nagging stops. The elimination of this
negative stimulus is reinforcing and will likely increase the chances that he will take out
the garbage next week.
Punishment
Punishment refers to adding something aversive in order to decrease a behavior. The
most common example of this is disciplining (e.g. spanking) a child for misbehaving. The
reason we do this is because the child begins to associate being punished with the
negative behavior. The punishment is not liked and therefore to avoid it, he or she will
stop behaving in that manner.
Extinction
When you remove something in order to decrease a behavior, this is called extinction.
You are taking something away so that a response is decreased.
Research has found positive reinforcement is the most powerful of any of these. Adding a
positive to increase a response not only works better, but allows both parties to focus on the
positive aspects of the situation. Punishment, when applied immediately following the negative
behavior can be effective, but results in extinction when it is not applied consistently.
Punishment can also invoke other negative responses such as anger and resentment.
PSYCHOANALYTICAL MODEL
Psychoanalysis is a method of understanding mental functioning and the stages of growth
and development.
Freud’s Psycho-analytical Theory
The psycho-analytical theory of personality was advocated by Sigmund Freud. This
theory has three major parts:
1. Theory of personality dynamics.

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 2. Theory of personality structure.
3. Theory of psycho-sexual development.

1. THEORY OF PERSONALITY DYNAMICS

Freud postulated a dynamic concept of personality by exploring the unconscious part of
human mind. According to Freud, the human mind has three levels of consciousness:
1. The conscious mind.
The conscious mind is that layer of mind which contains thoughts and perceptions
of which we are aware at a given moment.
2. The preconscious mind.
The preconscious mind is layer stands between conscious and unconscious part of
the mind and refers to those experiences of which the individual is not fully aware
but can be recalled easily. It contains memories and stored knowledge.
3. The unconscious mind.
The unconscious mind is the deeper layer of mind which contains repressed
wishes, fears, selfish needs, unacceptable sexual desires, immoral urges, shameful
experiences and violent motives of which the individual is unaware and is not
able to recall when he wants them.
2. THEORY OF PERSONALITY STRUCTURE
According to Freud, the personality structure is made up of three Interlocking systems –
id, ego and super-ego. Each of these systems has its own properties and mechanisms. But they
interact with one another closely and human personality is the outcome of such an interaction.
a) Id:
The following are the important features of id:
1. Id is the original source of personality and it is the reservoir of psychic energy (libido).
2. It is the primitive biogenic impulses in man consisting of everything that is inherited
psychologically, including instinctual drives sex and aggression.
3. It is inborn and operates on animal level.
4. It is unconscious in nature and has no direct contact with reality.
5. Id is guided by pleasure principle (the principle of avoiding paint and obtaining
pleasure).
b) Ego:
The following are the important features of ego:

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 • The ego develops out of id and operates with the energy derived from id. • ego is largely
conscious and it follows reality principle.
• It acts intelligently and determines what demands of id could be satisfied. Hence ego is
regarded as the police force in man.
• The keep balance between the demands of id and super – ego. It checks the flow of id in
those directions which considered undesirable.
• It functions as the executive with veto power, and so it can postpone the fulfillment of
the demands of id.
c) Super – Ego:
Super – ego is called conscience in the ordinary sense. It is the direct antithesis of id and
represents the ethical and moral force in man.
It has the following features:
• Super- ego is the internalized representation of the values and morals of society as
taught to the child by the parents and others.
• It develops out of the ego’s experiences with social reality.
• It is idealistic and does not care for realities.
• It is the decision making force in man and it is guided by conscience and wisdom.
• The super-ego represents the sense of right and wrong, good and bad for the society. It
judges whether an action is write or wrong according to the standards of the society.
3. THEORY OF PSYCHO-SEXUAL DEVELOPMENT
• According to Freud, all human being moves through a series of psycho-sexual
stages, during which the libidinal energy is focused on different regions of the
body (erogenous zones).
• If a child’s needs at any of the psychosexual stages were either unsatisfied or over
satisfied, fixation (a sort of arrested development) would take place.
• Adult personality of an individual depends upon the extended of fixation taken
place at different stages of psycho-sexual development.
• The different stages of psycho-sexual development are:
1. Oral Stage (Birth to 2 years) At this stage mouth is the erogenous zone. The
infant achieves gratification through oral activities such as feeding, sucking,
biting etc.
2. Anal stage (2 to 3 years) At this stage sensual pleasure is focused on the anal
zone. The child achieves gratification through retention and expulsion of faces

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 and also through retention and expulsion of faces and also through anal
manipulation.
3. Phallic Stage (3 To 5 Years) During this period, pleasure is focused on the
genital region. At this stage pleasure derived through fondling the genital organs.
Children become aware of sexuality and they develop sensual feelings towards
the parent of the opposite sex. The oedipus complex is formed in the male child as
a result of sexual child as a result of his sexual desire towards his mother and an
Electra complex is developed in the female child on account her desire for the
father and rejection of mother.
4. Latency Stage (6 Through Puberty) It is a dormant period which is marked by
a temporary repression of sexual interests and pleasure is derived from external
world.
5. Genital Stage (Adolescence And Beyond) Here, the pleasure is derived from
mature sexual relations with a partner of opposite sex. Progression to the genital
stage is possible only if serious fixation has not occurred at the earlier stages of
development. If such fixation has occurred, then the normal pattern of personality
development is blocked, and various forms of personality disorders result.

EVOLUTION OF ORGANIZATIONAL BEHAVIOUR

Stages of the evolution of organizational behavior management:
The first phase: began industrial psychology, who teaches the individual worker in
terms of skills, attitudes and trends that characterized them, such as: intelligence, capacity
and individual differences among workers
Second Phase: comes the stage of the school of human relations that are interested
individuals as groups, to see relationships among themselves and the impact on labor
productivity and the job satisfaction.
Third Phase: Finally comes the stage of human behavior and organizational interested in
studying the individual and the group, and their interaction individuals and groups with
labor organizations and their surrounding environment and internal, and knowledge of the
interaction between man and the organization operates.
Robert Owen-(1800)
 Young Factory Owner-First to emphasize the human needs of employees and refused to
employ children

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  Taught workers to improve working conditions
 Father of personnel management
Andrew Ure-(1935)
 The Philosophy of Manufacturers -1835
 Value of human factor in manufacturing
 Provided welfare facilities to workers
 J.N. TATA in 1886 Instituted a pension fund & 1895 began to pay accident
compensation.
William Gilbreth-(1914)
“The Psychology of Management
F.W.Taylor-(1916)
 Father of Scientific Management
 Time & Motion Study
 Piece Rate Method
Henry Fayol (1916)
 Administrative Management , Principle of Governing Behavior,
 Management Quality
Elton Mayo-(1920’s & 1930’s)
 Human behavior at Harvard University
 Hawthorne's Experiments/Plant
Abraham H. Maslow (1954):
 Need Hierarchy Motivation model
Douglas McGregor (1960):
 Theory X and Theory Y Managerial Style
Henry Mintzberg (1960) :
 Managerial Roles : Interpersonal, Informational and Decision Making
Peter Drucker (1909 -2005)
 Father of modern management
 Importance of change
 How to bring best out of people
 Innovation
 Entrepreneurship

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CHALLENGES FOR OB
 Globalization to Respond
 Managing Diversity
 Improving Quality and Productivity
 Improving Customer Service
 Improving People Skills
 Stimulating Innovation and Chang e
 Coping with Temporariness
 Working in network organization
 Helping employees balance work-life conflicts
 Creating Positive work environment
 Improving Ethical Behaviour

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