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MODULE 1

Content:
The meaning of OB, Why study organisational behaviour, Organisational behaviour models, Benefits of
studying OB, Inter-disciplinary Subject.

Opening Case- A Tale of Twists and Turns

Rudely shaken, Vijay came home in the evening. He was not in a mood to talk to his wife. Bolted inside,
he sat in his room, lit a cigarette, and brooded over his experience with a company he loved most.
Vijay, an M.Com. and an ICWA, joined the finance department of a Bangalore-based electric company
(Unit 1), which boasts of an annual turnover of ` 400 crore. He is smart, intelligent, but conscientious. He
introduced several new systems in record-keeping and was responsible for cost reduction in several areas.
Being a loner, Vijay developed few friends in and outside the organisation. He also missed promotions
four times though he richly deserved them.
G.M. Finance saw to it that Vijay was shifted to Unit 2 where he was posted in the purchase department,
though purchase was not his cup of tea. Vijay went into it whole hog, streamlined the purchasing function
and introduced new systems, particularly in vendor development. Being honest himself, Vijay ensured
that nobody else made money through questionable means.
After two years in purchase department, Vijay was shifted to stores. From finance to purchase and then to
stores was too much for Vijay to swallow.
He burst out before the unit head, 2 and unable to control his anger, Vijay put in his papers too.
The unit head was aghast at this development but did nothing to console Vijay. He forwarded the papers
to the V.P. Finance, Unit 1.
The V.P. Finance called in Vijay, heard him for a couple of hours, advised him not to lose heart, assured
him that his interests would be taken care of, and requested him to resume duties in purchase department
of Unit 2: Vijay was also assured that no action would be taken on the papers he had put in.
Six months passed by. Then came the time to effect promotions. The list of promotes was announced and
to his dismay, Vijay found that his name was missing. Angered, Vijay met the unit head 1 who coolly told
Vijay that he could collect his dues and pack off to his house for good. It was great betrayal for Vijay.

Introduction
What makes employees see their work in different ways? How do these differences affect their motivation
and satisfaction with the job? Would they respond differently to rewards, different types of leadership or
structures at work? How would they work together? If you have ever wondered about how people act and
think the way they do in the workplace, you have been thinking about organisational behaviour (OB),
probably without knowing it. By studying concepts and research in OB you will be able to understand and
ultimately affect attitudes and behaviours at your current or future place of work.

The study of Organizational Behaviour (OB) is very interesting and challenging too. It is related to
individuals, group of people working together in teams. The study becomes more challenging when
situational factors interact. The study of organizational behaviour relates to the expected behaviour of an
individual in the organization. No two individuals are likely to behave in the same manner in a particular
work situation. It is the predictability of a manager about the expected behaviour of an individual. There
are no absolutes in human behaviour. It is the human factor that is contributory to the productivity hence
the study of human behaviour is important. Great importance therefore must be attached to the study.
Researchers, management practitioners, psychologists, and social scientists must understand the very
credentials of an individual, his background, social framework, educational update, impact of social
groups and other situational factors on behaviour. Recent trends exist in laying greater stress on
organizational development and imbibing a favourable organizational culture in each individual. It also
involves fostering a team spirit and motivation so that the organizational objectives are achieved. There is
a need for commitment on the part of the management that should be continuous and incremental in
nature.

Meaning and Definition of Organisational Behaviour


What is this business about ‘organisational behaviour’? Do organisations really behave? Perhaps not, but
people certainly do. The field of OB is really about understanding how people think, act and react in the
workplace, and the influence of many factors on their behaviour. These factors include issues around
individuals, their relationships with others such as their co-workers and boss, the group or department
they are in, and the structure and culture of the organisations they work in.

 Organizational Behaviour (OB) can be defined as the understanding, prediction and management of
human behaviour both individually or in a group that occur within an organization.

 “Organizational behaviour is a field of study that investigates the impact that individuals, groups and
organizational structure have on behaviour within the organization, for the purpose of applying such
knowledge towards improving an organizational effectiveness”.

 Organizational behaviour can be defined as – “the study and application of knowledge about human
behaviour related to other elements of an organization such as structure, technology and social systems
(LM Prasad).

 Stephen P Robins defines “Organizational behaviour as a systematic study of the actions and attitudes that
people exhibit within organizations.”

 OB refers to the behaviour of individuals and groups within organisations and the interaction between
organisational members and their external environments.

Evolution of organisational behaviour

Part 1- https://www.youtube.com/watch?v=kGdJJtKXkqg
Part 2- https://www.youtube.com/watch?v=kGdJJtKXkqg
Why study organisational behaviour?
While working in an organization, it is very important to understand others behaviour as well as make
others understand ours. In order to maintain a healthy working environment, we need to adapt to the
environment and understand the goals we need to achieve. This can be done easily if we understand the
importance of OB.

Following points bring out the importance/benefits of OB:

 It will provide you with a better understanding of the world of work.


 It promotes self-insight and personal growth.
 It gives you the ability to speak with others from various disciplines.
 OB provides a road map to our lives in organisations.
 The field of OB uses scientific research to help us understand and predict organisational life.
 OB helps us influence organisational events.
 OB helps an individual understand himself/herself and others better.
 A manager in a business establishment is concerned with getting things done through delegation.
 OB is useful for maintaining cordial industrial relations.
 OB is also useful in the field of marketing.
 It helps in explaining the interpersonal relationships employees share with each other as well as with their
higher and lower subordinates.
 The prediction of individual behaviour can be explained.
 It balances the cordial relationship in an enterprise by maintaining effective communication.
 It helps managers to encourage their sub-ordinates.
 Any change within the organization can be made easier.
 It helps in predicting human behaviour & their application to achieve organizational goals.
 It helps in making the organization more effective.

Thus studying organizational behaviour helps in recognizing the patterns of human behaviour and in-turn
throw light on how these patterns profoundly influence the performance of an organization.

Organisational behaviour models:


Organizational behaviour reflects the behaviour of the people and management all together, it is
considered as field study not just a discipline. A discipline is an accepted science that is based upon
theoretical foundation, whereas OB is an inter-disciplinary approach where knowledge from different
disciplines like psychology, sociology, anthropology, etc. are included. It is used to solve organizational
problems, especially those related to human beings.
There are seven different types of models in OB. We will throw some light on each of these seven
models.
Feudal Model: Feudal Model treats employees inferior. The concept is based upon Theory X where
actions, policies and procedures are considered superior to human beings. In fuedal model employees are
treated sternly and hire and fire principle is applicable in the organization. These models have been
practiced world over by various organizations where people have been laid off for cost cutting. Employee
desires, value, emotions are not considered pragmatically by the organizers. People are treated as another
resource for all purposes.

Autocratic Model: Autocratic model is based on the concept that managers are superior. They have
power to hire and fire any employees. Managers’ words are considered final. Autocratic model believes in
power and authority of the manager. Employee has to obey the orders of the boss. Autocratic model
proposes that minimum employee needs are met. It believes that higher salaries given to employees are
sheer waste of resources as they spend money for unproductive needs. Individuals are controlled by the
managers based on official authority and power attached to it. Employees are driven to work as this
model assumes that nobody wants to work unless he is forced to do so. Managers are considered neutral
born leaders who are obeyed and respected in all areas. The autocratic model is very commonly used in
Indian organizations like, railways, defence organization, police organization, banks etc.

Custodial Model: Custodial model imply that owners are custodian of resources in the organization and
they are bound to look after the welfare of employees. It considers that assets of organization belong to
industrialist, managers and employees in equal measures and that nobody has monopoly rights.
Employees are given opportunities to bring their problems to the notice of the employer and it is the duty
of the latter to solve the same. Redressal of grievance procedure exists in the organization. Employees
depend on the organization for security and their welfare. The organizations provide wages and salary
while employees are in service. They also provide pensionary benefits to the employees so that they can
sustain their post retirement life comfortably. While in service employees get fair wages rather than
subsistence wages. They depend on the organization rather than the boss. Employees devote themselves
for the organizational development because they feel that the organization look after the employee
welfare not only during service but also post service periods. Employees are interested in economic
rewards and benefits. Employee value, preferences, attitude, emotions and psychological motivational
factors are not considered for organizational effectiveness. The model however is useful for
organizational growth.

Supportive Model: Employees are considered active workers who have their value, attitude, desire, and
preferences. Leaders use attitude and value system of employees to motivate them. Supportive model
believes that employees are active and with ideal environment and support, they can use their energies
and skill for higher productivity of the organization. If employees are given opportunities they can
increase their capacity to do a particular work. Owner has to provide and support various activities for
individual, group and organizations. The employees should develop sense of belonging and feeling of
participation in overall organizational growth. The model does not support the custodial model concept
where money is considered as motivating factor. Employees get opportunities for recognition. They
develop positive outlook towards work culture. Managers and workers participate together in the
development of organization while achieving development of their own skills. Many organizations have
developed as a result of adopting the supportive model. The model helps in the development of
individuals, groups and organizations. It is more effective in developed countries. It has not been proved
very effective in developing nations because of restrictive social and cultural environment. Supportive
model is used in many organizations with modifications.

Collegial Model: Collegial model refers to body of persons having common objective. The basis of the
model is the partnership of the employees with owners. The emphasis is on team management between
workers and owners. Employees are given responsible and trustworthy jobs. They are self-disciplined and
self-motivated. Managers and workers have similar activities, work environment and understanding.
Managerial cadre is not considered superior to the employees. They contribute jointly rather than bosses
or leaders. They have to develop as a team with employees and impress upon quality and performance.
Combined efforts contribute to the growth and performance of the organization.

Human Value Model: The natural process of behaviour is Stimulus, Organism, Behaviour and
Consequence. It is generally known as SOBC. Every organization should provide enough incentives in
the form of intrinsic and extrinsic stimuli. Intrinsic stimulus is achieved by encouraging individuals by
recognition, empowerment, and delegation of authority, better inter-personal relations and cognitive
behaviour in general. Extrinsic stimuli refer to economic incentives in the form of reward for the job
done. It is monetary in nature and is exercised for influencing organism of employees. The aim of these
incentives is to stimuli the employees in the desired direction so that productivity and growth is achieved.
Organizations should identify best social, cultural, physical and technological stimuli so that positive
consequences in the form of behaviour are achieved. It must be understood that people work in the
organization for achieving psychological satisfaction. Environment of the organization therefore must be
conducive to work and quality of work life should be very rich.

Contingency Model: Contingency model of organizational behaviour refers to complex variables that
influence individual, group and organizational structures. Contingency model is designed to meet the
contingent situations like management of conflict, handling of stress, achieving growth and managing the
complexities caused due to changes in organization structures. In the contingency model relations
between manager and employees are based on co-operation, trust and desire of well-being. Promotion to
employees is assured. No distinction is made between specialist and non-specialist. It is also known as the
hybrid model where long term employment is assured to the employees.
Major disciplines/ Inter-disciplinary subject and their contribution to OB:

Psychology: Psychology is concerned with individual behaviour and has contributed greatly to the intra-
individual dynamics of human behaviour. In other words, intrapersonal aspects of organisational
behaviour like motivation, personality, perception, attitude, opinion, and learning owe their study to
psychology.
Psychologists themselves are becoming increasingly important these days and the number of professional
psychologists has also been growing. They hold important positions in various sectors. Some are
academicians with specialisation in experimental, social, or clinical psychology. Others can be found in
business, industrial, and Government organisations. For example, there are educational psychologists and
counsellors who work with school children. Some industrial psychologists function mainly in industry,
where they are involved in screening and training employees. More recently, their functions have been
expanded to include training, developing effective leadership, performance appraisal, job design, and
work stress.
Sociology: If psychology is the study of individual behaviour, sociology addresses itself to the study of
group behaviour. It studies the behaviour of people in relation to their fellow human beings. Sociologists
have enriched organisational behaviour through their contribution to the study of interpersonal dynamics
like leadership, group dynamics, communication, formal and informal organisations, and the like.

Social Psychology: This subject borrows concepts from both psychology and sociology. It focuses on the
influence of people on one another. One of the areas receiving considerable attention from social
psychology is change — how to reduce resistance to it and implement it successfully. Additionally, social
psychology is useful in measuring, understanding, and changing attitudes, communication patterns, the
ways in which group activities can satisfy individual needs, and in group decision making process.

Anthropology: It is the study of the human race, in particular, its culture. Culture has significant
influence on human behaviour. It dictates what people learn and how they behave. Every organisation
will have its own distinct culture. Some organisations particularly, closely held ones, are secretive,
publicity-shy, and are less inclined to encourage participative management.
Some organisations, the Tata’s for example, take employee welfare and social responsibility as their main
goals. The culture of the organisation will have an influence on the employee. His or her attire, perception
about things – good and bad, and his or her style of functioning are influenced by the culture of his or her
organisation.

Political Science: Contributions from political scientists for a better understanding of OB are significant.
Political scientists study the behaviours of individuals and groups within a political environment. Specific
topics of concern to political scientists include conflict resolution, group coalition, allocation of power,
and how people manipulate power in their self-interest.
In the past, the term ‘politics’ was considered to be a dirty word. Not any more now. Organisations are
becoming political entities and a better understanding of them cannot be had without understanding the
political perspective as well.

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