ORGANIZATIONAL BHAVIOR

CHAPTER 1
INTRODUCTION

Organizational Behavior

Organization Behavior
ORGANIZATION

• “It is a group of people who are collected to work for a common goal with
collective efforts. Organization works through two concepts i.e coordination
and delegation among its group members. Delegation is necessary to allocate
group members with equal work according to their capability, and
coordination is required to achieve organizational goal with precision.”
BEHAVIOR

• “It is a verbal or physical response shown by a person as a consequence of

the impact of his/her surroundings. Individual Behavior varies in accordance
with their mental reactivity to particular circumstances because of their
deeply imbeded morals and value system.”
ORGANIZATIONAL BEHAVIOR

• “Actions and attitudes of individuals and groups toward one another and
toward the organization as a whole, and its effect on the organization's
functioning and performance.”
FUNDAMENTAL ASPECTS OF ORGANIZATIONAL
BEHAVIOUR
• There are various aspects of Organizational Behavior which it has to deal
with, to know the soul of particular Organization. Below mentioned are some
of the fundamental aspects of Organizational Behavior-
 People

Environment
OB Structure

Technology
PEOPLE

• This element is the soul of the Organization because people work to achieve
the target of Organization and Organization works to fulfill the needs of
individual or group of individuals. The word ‘people’ can be anyone who is
working inside the Organization, like employees or any external person like
supplier, customer, auditor, or any government official.
STRUCTURE

• It is the body of the Organization which is to be taken care of to bring

coordination between different levels of Organization, because Organization
does not work aloof and is dependent on people which again work on the
concept of division of labor. So, there is always a hierarchy in Organization
which if not properly dealt with can mess the system because of nil scrutiny
and flow of control.
TECHNOLOGY

• Organizations work on technologies to help people in efficiently doing their work. Same
technology does not apply to each Organization but different Organizations demand different
technologies for their different line of businesses e.g bank needs mediating technology which
connects customers and bankers, Manufacturing companies need long linked technology because of
their assembly line process, and hospitals work on intensive technology because of their
responsibility to provide specialized services in terms of doctors and medical equipments.
• The intensive technology is most dramatically illustrated by the general hospital. At any moment an
emergency admission may require some combination of dietary, x-ray, laboratory, and
housekeeping or hotel services, together with the various medical specialities, pharmaceutical
services, occupational therapies, social work services, and spiritual or religious services. Which of
these, and when, can be determined only from evidence about the state of the patient.
THREE TYPES OF TECHNOLOGY
ENVIRONMENT

• Organizations are influenced by the environment in which they work, at a substantial

level. Environment is important to Organizations because of the following factors:
• # Supply and demand comes from this environment.
• # Human resource, competitors, government agencies, unions, and political parties
comes from environment in which Organization is surviving.
• # The Organizations have to follow rules and regulations fostered by this
environment.
IMPORTANCE OF ORGANIZATIONAL BEHAVIOR
• It builds better relationship by achieving people’s, organizational, and social objectives.
• It covers a wide array of human resource like behavior, training and development, change management, leadership,
teams etc.
• It brings coordination which is the essence of management.
• It improves goodwill of the organization.
• It helps to achieve objectives quickly.
• It makes optimum utilization of resources.
• It facilitates motivation.
• It leads to higher efficiency.
• It improves relations in the organization
WHO ARE MANAGERS??

“Managers are the individual who are responsible for coordinating and integrating activities of other people in the Organization.”
• The classic definition of manager is “Leaders do the right thing and managers do things right.”.
• Manager work to archive the organization goals by using limited resources such as people, money and etc in an efficient
and effective way.
• The difference between the manager and operative employee is that manager not directly perform dayto day activities
whereas the normal employee are directly perform day to day activities.
• Managers normally assign task and timelines to the subordinates communicated in the form of plan.
• Subordinates start working on the assigned task but it is not necessary everything work according to the plan to make this
thing nearly possible manager evaluate the progress and take corrective action if subordinates doing any mistakes.
LEVELS OF MANAGERS
• There are different level of managers in traditional organizations which including first line managers,
middle manager and top managers.
• First Line Managers
First line managers are also know as supervisor are involve looking after day to day activities of operational activities. In manufacturing
plant first line manager overlook the workers for production activities.

• Middle Managers
Middle managers comes between first line and top managers, normally the middle managers are leading the team, department
with designations such as head of department, team lead, product manager, floor manager and etc. Middle managers not directly look
into every employee activity, they take reports from first line managers.

• Top Managers
Top managers are responsible for taking broad decision and making long term strategies for the organization. They take feedback
from the middle management before taking any decisions. These individuals typically have titles such as chief executive officer, chief
technology officer, managing director, president, operating officer and chairman of board.
WHAT MANAGERS DO?
Managerial Managerial
Functions Roles

Managerial Managerial
Skills Activities
MANAGERIAL FUNCTIONS

Planning Organizing Leading Controlling

PLANNING

• To get things done through the subordinates, a manager must plan ahead.
• It Is the determination of strategies, programmes, policies, and procedures to
accomplish organizational objectives.
• For a human resource manager, planning means the determination of
personnel programs that will contribute to the goals of the enterprise, i.e.,
anticipating vacancies, planning job requirements, job descriptions and
determination of the sources of recruitment.
ORGANIZING

• It is a process of allocating the task among the members for achieving

organizational objectives.
• Once the human resource manager has established objectives and developed
plans and programs to reach them, he must design and develop organisation
structure to carry out the various operations.
LEADING

• Includes motivating
subordinates, directing others, selecting the most effective
communication channels, and resolving conflicts.
• To become effective at leading, managers must first understand their
subordinates’ personalities, values, attitudes, and emotions.
CONTROLLING

• It is the act of checking, regulating and verifying whether everything occurs as

per the standards set and plans adopted.
• Controlling consists of three steps, which include (1) establishing performance
standards, (2) comparing actual performance against standards, and (3)
taking corrective action when necessary.
 MANAGERIAL ROLES

Decision Making
• Figure

Information Processing
Interpersonal Role

• Monitor • Entrepreneur
Head
• Disseminator • Disturbance
• Liaison
Handler
• Spokesman
• Leader • Resource
Allocator

• Negotiator
MANAGERIAL ROLES

• Henry Mintzberg describes the operational work of managers in terms of

managerial roles.
• The activities that are carried out by those managers are key elements. The way in
which the Mintzberg Managerial Roles are carried out, are influenced by individual
and situational factors. Henry Mintzberg initially divided the ten managerial Roles
roles into three sub categories:
• Interpersonal contact
• Information processing
• Decision making
INTERPERSONAL CONTACT

• Interpersonal contact concerns the contact between the manager and the
people in his environment. For example, subordinates, other managers, the
board of directors, the works council, customers and suppliers.
• The following Mintzberg Managerial Roles are primarily concerned with
interpersonal contact:
INTERPERSONAL CONTACT

1. Figurehead
• As head of a department or an organisation, a manager is expected to carry out ceremonial
and/or symbolic duties. A manager represents the company both internally and externally in all
matters of formality.
• He is a networker but he also serves as an exemplary role model. He is the one who addresses
people celebrating their anniversaries, attends business dinners and receptions.
2. Leader
• In his leading role, the manager motivates and develops staff and fosters a positive work
environment. He coaches and supports staff, enters into (official) conversations with them, assesses
them and offers education and training courses.
INTERPERSONAL CONTACT

3. Liason
• A manager serves as an intermediary and a linking pin between the high and
low levels. In addition, he develops and maintains an external network.
• As a networker he has external contacts and he brings the right parties
together. This will ultimately result in a positive contribution to the
organization.
INFORMATION PROCESSING

According to Henry Mintzberg, the managerial role involves the processing of

information which means that they send, pass on and analyze information.
Managers are linking pins; they are expected to exchange flows of vertical
information with their subordinates and horizontal flows of information with their
fellow managers and the board of directors. Further more, managers have the
responsibility to filter and transmit information that is important for both groups.
The following Mintzberg Managerial Roles fall under process information:
INFORMATION PROCESSING

4. Monitor
• As a monitor the manager gathers all internal and external information that is relevant to the
organization.
• He is also responsible for arranging, analyzing and assessing this information so that he can
easily identify problems and opportunities and identify changes.
5. Disseminator
• As a disseminator the manager transmits factual information to his subordinates and to other
people within the organization.
• This may be information that was obtained either internally or externally.
INFORMATION PROCESSING

6. Spokesman
• As a spokesman the manager represents the company and he communicates to
the outside world on corporate policies, performance and other relevant
information for external parties.
DECISION MAKING

• Decision-making is an integral part of modern management. Every manager takes

hundreds and hundreds of decisions subconsciously or consciously making it as the key
component in the role of a manager. Decisions play important roles as they
determine both organizational and managerial activities. A decision can be defined
as a course of action purposely chosen from a set of alternatives to achieve
organizational or managerial objectives or goals.
• An authoritarian leader is sooner inclined to make decisions independently than a
democratic leader. The following Mintzberg Managerial Roles fall under decision-
making:
DECISION MAKING

7. Entrepreneur
• As an entrepreneur, the manager designs and initiates changes and strategies.
8. Disturbance handler
• In his managerial role as disturbance handler, the manager will always immediately
respond to unexpected events and operational breakdowns. He aims for usable
solutions.
• The problems may be internal or external, for example conflict situations or the
scarcity of raw materials. .
DECISION MAKING

9. Resource allocator
• In his resource allocator role, the manager controls and authorizes the use of
organizational resources.
• He allocates finance, assigns employees, positions of power, machines, materials and
other resources so that all activities can be well-executed within the organization.
10. Negotiator
• As a negotiator, the manager participates in negotiations with other organizations
and individuals and he represents the interests of the organization.
MANAGERIAL SKILLS

Technical Human Conceptual

Skills Skills Skills
TECHNICAL SKILLS

• The ability to apply specialized knowledge or expertise.

• In this example, the field is computer programming, and technical skills may
include aspects like knowledge of computer languages, knowledge of
advanced algorithms, or knowledge of assembly languages related to the
basic functions of a computer.
• All jobs require some specialized expertise, and many people develop their
technical skills on the job.
HUMAN SKILLS

• The ability to understand, communicate with, motivate, and support other

people, both individually and in groups, defines human skills
• Many people are technically proficient but poor listeners, unable to
understand the needs of others, or weak at managing conflicts.
• Because managers get things done through other people, they must have good
human skills.
CONCEPTUAL SKILLS

• Allow a manager to visualize the entire organization and work with ideas and the
relationships between abstract concepts.
• Decision making, for instance, requires managers to identify problems, develop
alternative solutions to correct those problems, evaluate those alternative solutions,
and select the best one.
• After they have selected a course of action, managers must be able to organize a
plan of action and then execute it. The ability to integrate new ideas with existing
processes and innovate on the job are also crucial conceptual skills for today’s
managers.
MANAGERIAL ACTIVITIES

• Luthans and his associates studied more than 450 managers. All engaged in
four managerial activities:
• 1. Traditional management. Decision making, planning, and controlling.
• 2. Communication. Exchanging routine information and processing paperwork
• . 3. Human resource management. Motivating, disciplining, managing conflict,
staffing, and training.
• 4. Networking. Socializing, politicking, and interacting with outsiders.
CONT..

• The “average” manager spent 32 percent of his or her time in traditional

management activities, 29 percent communicating, 20 percent in human
resource management activities, and 19 percent networking.
DISCIPLINES THAT CONTRIBUTE TO THE OB FIELD

• Organizational behavior is an applied behavioral science built on

contributions from a number of behavioral disciplines, mainly
• psychology
• social psychology
• sociology
• anthropology
PSYCHOLOGY

• Psychology has perhaps the first influence on the field of organizational

behavior because it is a science of behavior. A psychologist studies almost all
aspects Of behavior.
• Psychology deals with studying human behavior that seeks to explain and
sometimes change the behavior’of humans and other animals.
• Psychologists are primarily interested in predicting the behavior of individuals
to a great extent by observing the dynamics of personal factors.
SOCIAL PSYCHOLOGY

• It has been defined as the scientific investigation of how the thoughts, feelings, and
behavior of individuals are influenced by the actual, imagined or implied the
presence of others.
• It deals with how people are affected by other individuals who are physically
present or who are imagined to be present or even whose presence is implied.
• In general, sociology focuses on how groups, organizations, social categories, and
societies are organized, how they function, how they change.
SOCIOLOGY

• While psychology focuses on the individual, sociology studies people in

relation to their social environment or culture.
• Sociologists have contributed to OB through their study of group behavior in
organizations, particularly formal and complex organizations.
• Perhaps most important, sociologists have studied organizational culture,
formal organization theory and structure, organizational technology,
communications, power, and conflict.
ANTHROPOLOGY

• Anthropology is the study of societies to learn about human beings and their
activities.
• The main aim of anthropology is to acquire a better understanding of the
relationship between the human being and the environment. Adaptations to
surroundings constitute culture. The manner in which people view their surroundings is
a part of the culture.
• Culture includes those ideas shared by groups of individuals and languages by which
these ideas are communicated. In essence, culture is a system of learned behavior.