1- Introduction to Organizational Behaviour

Introduction

Organisations can be found in every sector of life. Government offices, banks, schools, colleges, hospitals, factories, stores, institutes, political organisations, and other similar establishments. Each of them is required to carry out their activities. Organising is a fundamental management function. It refers to the process of identifying and grouping tasks to be completed, as well as defining and establishing the authority-responsibility relationship. This helps people collaborate most effectively to achieve organisational goals.

In general, organising entails determining and arranging for the people, resources, machines, and money required by an enterprise to achieve its objectives. In an operational definition, organising refers to establishing employees’ roles and coordinating their actions. The result of organising is constructing a structure of duties and responsibilities for people in different organisational roles, grouping them based on resemblance, behaviour, and the interconnected nature of operations. In summary, the organising process yields an “organisation,” which consists of individuals working together to achieve one or more shared goals.

1.1 Definition

Money and Reiley: “Organization is the form of every human association for attaining a common purpose”.

Puffier and Sherwood: “Organization is the pattern of ways in which large numbers of people have intimate face-to-face contact with all others, are engaged in a variety of tasks, relate themselves to each other in conscious, systematic establishment and accomplishment of mutually agreed purposes.”

L.Urwick: “Organisation is to determine the activities to accomplish a job and arrange the distribution of activities among the people.”

Gary Johns: “Organizations are social inventions for accomplishing goals through group efforts.”

This concept encompasses many organisations, including corporations, schools, hospitals, fraternal organisations, religious entities, government agencies, etc. The preceding definition contains three key characteristics that demand additional examination. These are their names:

• Social Inventions: As a derivative of society, the word “social” essentially signifies a gathering of people. An organisation is made up of people.

• Accomplishing Goals: Every organisation exists for a reason. These are the objectives for which all organizational efforts are oriented. While the primary purpose of every business organization is to produce money for its owners, this goal is inextricably linked to many others. As a result, any organizational aim must include the personal ambitions of all affiliated individuals.

• Group Effort: People interact with and rely on one another as members of society at large and as members of an organisation. Individuals have physical and intellectual limitations that can only be overcome through cooperative efforts.

1.2 Need for Organization

Organisational behaviour is an applied behavioural science that draws from psychology, sociology, social psychology, anthropology, and political science. Understanding organisational behaviour is crucial for managers. Due to global competitiveness, personnel must be more adaptable and adapt quickly. Managers are finding Organizational Behaviour ideas difficult. National borders no longer limit organisations. British-owned Burger King and McDonald’s serve hamburgers in Moscow. Exaction Mobile, an American company, makes 75% of its money abroad. Honda makes vehicles in Ohio, Ford in Brazil, Mercedes and BMW in South Africa, and all the big automakers build cars abroad. Globalisation has made the globe a village. Managers must diversify their workforce. Workforce diversity means organisations are becoming increasingly gender, racial, and ethnically diverse.

Positively managed diversity can boost creativity, innovation, and decision-making by bringing new perspectives to initiatives. Quality management seeks customer pleasure by improving all organisational processes (productivity, absenteeism, turnover, job satisfaction, and its recently introduced fifth dependent variable, organisational citizenship).

We require an organization to carry out the management function. Organizational study is necessary for the following reasons:

a. It provides a perfect environment for studying human behaviour. The study of organisation leads to significant discoveries critical for the long-term well-being of institutes and society.

b. Organisational knowledge assists managers in effectively knowing many things, such as how to operate the organisation and safeguard the demands of the environment, how to encourage and manage organizational subordinates, how to manage conflicts, how to introduce behavioural changes, and so on.

c. Organisations are present in all aspects of man’s life. A man is born in an organisation (hospitals, clinics, etc.), educated in an organisation (schools, colleges, etc.), and works in an organisation (factories, offices, etc.).

1.2 Historical Evolution of Organizational Behaviour

When you look at the history of organizational behaviour (OB), you can gain a lot of insight into how the area got to where it is today. Three individuals are significant because they pushed concepts that significantly impacted the direction and boundaries of OB. Their names are Adam Smith, Charles Babbage, and Robert Owen.

In his debate in “The Wealth of Nations” in 1776, Adam Smith brilliantly argued for the economic benefit organisations and society would reap from the division of labour, known as work application in industry. He demonstrated it with the help of an industry application. He concluded that division of labour increases productivity by boosting each worker’s skill and talent, saving time frequently lost in changing duties and promoting the creation of labour-saving technologies and machinery. His theory resulted in the extensive development of assembly-line production processes in the twentieth century.

Charles Babbage, a British mathematics professor, added the following to Smith’s enumeration of the benefits of division of labour in his work “On the Economy of Machinery and Manufacturer,” published in 1832:

i. It shortens the time required to learn a new job.

ii. It decreases material waste during the learning stage.

iii. It enables the attainment of high skill levels.

iv. It better matches people’s skills and physical abilities to specific activities.

Babbage also advocated that the economics of specialisation be applied to conducting mental and physical labour. Specialisation in accounting, taxation, marketing, and organisational behaviour reflects this in industry.

A Welsh entrepreneur, Robert Owen, was among the first to recognise how the expanding factory system humiliated people. He contended that strengthening labour was among the best investments business executives could make. He advocated for controlling work hours for all, including child labour, public education, company-provided meals at work, and business involvement in community projects.

Let’s delve into more detail on the historical background of Organizational Behavior:

1. Scientific Management Era (Late 19th to Early 20th Century):

Key Figures: Frederick Taylor, Frank and Lillian Gilbreth.
Focus: Scientific Management aims to optimize workplace efficiency. Taylor, the father of scientific management, proposed breaking down tasks into small, manageable components. Time and motion studies were conducted to identify the most efficient task-performing methods.

2. Human Relations Movement (1920s – 1930s):

Key Figures: Elton Mayo, Kurt Lewin.
Focus: This era marked a shift towards recognizing the importance of social and psychological factors in the workplace. The Hawthorne Effect, the subject of Mayo’s Hawthorne Studies, showed that social interactions impact employees’ productivity.

3. The Hawthorne Studies (1924 – 1932):

Contribution: The studies brought attention to the impact of social and psychological factors on productivity, highlighting the need for understanding human behaviour in organizations. They also revealed the significance of employee involvement and communication.

4. The Human Relations Approach (1930s – 1950s):

Focus: This approach emphasizes the human aspect of work and stresses the importance of employee satisfaction and motivation. The idea is to create a positive work environment that considers employees’ needs and social interactions.

5. Bureaucratic Management (Max Weber):

Era: Early 20th Century.
Contributions: Max Weber’s bureaucratic model emphasized the importance of organisations’ well-defined hierarchical structure, clear rules, and formal procedures. It aimed at creating an efficient and rational organizational system.

6. Post-World War II (1940s – 1950s):

Key Figures: Abraham Maslow, Douglas McGregor.
Focus: Maslow’s Hierarchy of Needs suggested that human motivation is influenced by a hierarchy of needs, ranging from basic physiological needs to higher-level self-actualization needs. Douglas McGregor introduced Theory X and Theory Y, highlighting different assumptions about employee motivation.

7. Organizational Development (1960s – 1970s):

Key Figures: Kurt Lewin, Edgar Schein.
Focus: Organizational Development (OD) emerged as a field emphasizing planned interventions to improve organizational effectiveness. It included techniques like sensitivity training, team-building exercises, and process consultation.

8. Contingency Theory (1960s – Present):

Key Figures: Joan Woodward, Paul Lawrence, Jay Lorsch.
Focus: Contingency theorists argued that there’s no universal approach to management. Instead, practices should be contingent on various internal and external factors such as the organization’s size, technology, and environment.

9. Quality Management (1980s – Present):

Key Figures: W. Edwards Deming, Joseph Juran.
Focus: The focus shifted to Total Quality Management (TQM), promoting continuous improvement and customer satisfaction. Quality became a shared responsibility of all employees, not just a specialized department.

10. Information Age and Globalization (1990s – Present):

Key Changes: The advent of technology, globalization, and knowledge-based work.
Focus: Organizations adapted to technological advancements, global competition, and a shift towards knowledge-based work. Virtual teams, cross-cultural management, and the role of information technology gained prominence.

11. Contemporary Trends (21st Century):

Focus: Contemporary organizational behaviour trends include embracing diversity and inclusion, accommodating remote work, fostering organizational agility, and recognizing the importance of emotional intelligence in effective leadership.

Organizational Behavior has evolved in response to societal, economic, and technological changes. Each era has contributed unique perspectives and theories, reflecting the ongoing efforts to understand and optimize human behaviour within organizations.

1.3 The Nature / Characteristics of Organizational Behaviour

Organizational behaviour has evolved as a distinct area of research. It has now gained the following characteristics:

1. A distinct field of study rather than a discipline: OB has an interdisciplinary perspective and is not based on a single theoretical foundation.

2. An interdisciplinary approach: Occupational behaviour is fundamentally a multidisciplinary approach to studying human conduct at work. It attempts to integrate essential knowledge derived from adjacent disciplines, such as psychology, sociology, anthropology, and so on, to make it applicable to researching and analysing OB.

3. An Applied Science: OB applies diverse research findings to tackle human behaviour-related organisational difficulties.

4. A Normative Science: whereas positive science analyses cause-and-effect relationships, OB specifies how applied research findings can be used to achieve socially appropriate organizational goals.

5. A Humanistic and Optimistic Approach: It takes a humanistic approach to working with people in the organisation. It views people as thinking, emotional beings.

6. Total system approach: A total system approach incorporates all elements influencing organisational functioning. Man’s socio-psychological framework is complicated, and the OB system method attempts to analyse and solve this complexity.

1.4 Organizational Behaviour as an Interdisciplinary Approach

Organizational behaviour is an applied behavioural science that draws on research from various behavioural disciplines, including psychology, sociology, social psychology, anthropology, and economics.

Let us look at how these disciplines connect to organisational behaviour.

A) Psychology: Psychology is the study of human behaviour that attempts to uncover individual traits and provides knowledge of why an individual behaves in a particular way. As a result, we gain valuable insight into human motivation, perceptual processes, and personality traits.

B) Sociology: Sociology studies social behaviour, social group and society relationships, and the maintenance of social order. The social system is the primary focus of attention. This allows us to understand better how individuals behave in a socio-technical organisation.

C) Social Psychology: Social psychology studies human behaviour in social situations. It mainly addresses the issue of comprehending the typical behavioural patterns expected of an individual when he participates in a group.

D) Anthropology: Anthropology is the science of humanity and the study of all aspects of human activity. The main emphasis of attention is on a group’s or society’s cultural system, beliefs, practices, ideas, and values and the comparison of behaviour among different cultures within the framework of the current organisational scenario. Recognising the disparities between people from diverse cultural origins is critical, as people are frequently found working with others from other parts of the world.

E) Economics: Any organisation that wishes to survive and thrive must be aware of the economic feasibility of its endeavour. This also applies to non-profit and volunteer organisations.

F) Political Science: Although often ignored, political scientists’ contributions to organisational understanding are significant. This field investigates individuals and groups in unique settings of power dynamics. Important subjects under this heading include conflict structure, power allocation, and how people use power for individual self-interest.

1.5 Importance and scope of organizational behaviour

Importance of Organizational Behavior:

1. Understanding Human Behavior: OB facilitates a profound understanding of how individuals, groups, and structures influence organizational performance. It delves into the intricacies of human behaviour in the workplace, providing insights into motivations, attitudes, and actions.

2. Improving Productivity: By addressing motivational factors, job satisfaction, and interpersonal dynamics, OB contributes to enhancing organizational productivity. It involves analyzing work processes, job design, and team dynamics to identify factors influencing efficiency.

3. Enhancing Employee Satisfaction: Satisfied employees are more likely to be engaged and committed. OB helps create a work environment that fosters job satisfaction by studying leadership styles, communication patterns, and organizational culture.

4. Effective Communication: Communication is crucial for organizational success. OB aids in understanding communication patterns, barriers, and strategies for adequate information flow. It involves analyzing communication channels, feedback mechanisms, and team interpersonal communication.

5. Conflict Resolution: Conflict is inevitable, and OB equips managers with skills to identify, manage, and resolve conflicts constructively. It includes studying conflict triggers and negotiation techniques and developing conflict resolution strategies.

6. Leadership Development: Effective leadership is paramount, and OB provides insights into leadership styles, traits, and behaviours that contribute to positive outcomes. The scope includes leadership development programmes, understanding leadership effectiveness, and aligning styles with organizational goals.

7. Organizational Culture and Change Management: OB influences organizational culture and change management. It helps assess and shape culture and is vital in managing change. The scope includes studying cultural dynamics, change readiness, and developing strategies for successful organizational change.

8. Team Dynamics: Many organizations rely on teamwork, so OB provides insights into team formation, group dynamics, and factors influencing effectiveness—team-building activities, understanding team roles, and addressing challenges related to teamwork fall within the scope.

9. Employee Well-being: Recognizing the importance of employee well-being, OB contributes to creating a workplace that promotes physical and mental health. Studying work-life balance, stress management, and employee wellness programmes are part of the scope.

10. Diversity and Inclusion: Embracing diversity and fostering an inclusive environment is critical. OB provides insights into managing diverse teams and creating an inclusive culture. The scope includes studying diversity dynamics, bias reduction, and developing strategies for inclusive leadership.

Scope of Organizational Behavior:

1. Understanding Human Behavior: The scope involves studying individual and group behaviour in organizational settings, exploring motivations, attitudes, and actions that impact performance.

2. Improving Productivity: Scope encompasses analyzing work processes, job design, and team dynamics to identify factors influencing efficiency and productivity.

3. Enhancing Employee Satisfaction: The scope includes studying factors like leadership styles, communication patterns, and organizational culture to create a satisfying work environment.

4. Effective Communication: The scope includes analyzing communication channels, feedback mechanisms, and team interpersonal communication to foster effective communication.

5. Conflict Resolution: The scope involves studying conflict triggers and negotiation techniques and developing conflict resolution strategies for a healthier work environment.

6. Leadership Development: Leadership development programmes, understanding leadership effectiveness, and aligning styles with organizational goals are within the scope.

7. Organizational Culture and Change Management: The scope includes studying cultural dynamics, change readiness, and developing strategies for successful organizational change.

8. Team Dynamics: Team-building activities, understanding team roles, and addressing challenges related to teamwork fall within the scope.

9. Employee Well-being: The scope involves studying work-life balance, stress management, and employee wellness programmes to promote a healthier workplace.

10. Diversity and Inclusion: The scope encompasses studying diversity dynamics, bias reduction, and developing strategies for inclusive leadership to create a diverse and inclusive work culture.

1.6 Models of Organizational Behaviour

organizational behaviour (OB) encompasses various models that help understand and analyze the complexities of how individuals and groups behave within an organizational context. Here are explanations of some prominent models of organizational behaviour:

1. Autocratic Model:

Description: In the autocratic model, the decision-making authority is concentrated at the top, with a single leader or a small group making decisions. The authoritarian model represents a traditional top-down approach to decision-making within an organization. In this model, a single leader or a small group at the top holds the authority to make decisions, with limited input from subordinates. The power structure is highly centralized, and the organizational hierarchy is well-defined. This model is often effective when quick decisions are required, especially in hierarchical organizations with clearly delineated roles.

Characteristics: Centralized power, limited employee involvement, clear hierarchical structure.

Application: Effective in situations requiring quick decisions or in hierarchical organizations.

Example: In military organizations, commanders often make critical decisions without extensive consultation, ensuring quick response times.

2. Custodial Model:

Description: The custodial model focuses on providing economic security and various employee benefits to cultivate loyalty and commitment. Organizations following this model focus on employee welfare, offering benefits such as health insurance, retirement plans, and job security. The approach is somewhat paternalistic, aiming to create a stable and satisfied workforce by providing tangible rewards and security.

Characteristics: Emphasis on employee welfare, benefits, and job security.

Application: Often seen in organizations with a paternalistic approach, aiming to create a stable and satisfied workforce.

Example: Companies providing extensive health benefits, wellness programs, and retirement plans aim to create a custodial work environment.

3. Supportive Model:

Description: The supportive model emphasizes creating a positive work environment, fostering open communication, and providing support for personal development. Leaders in this model act as mentors, and the organizational culture prioritizes open communication, employee well-being, and personal growth. The aim is to foster a supportive atmosphere where employees feel valued, encouraged, and motivated to contribute to the organization’s success.

Characteristics: Leadership as mentors, emphasising employee well-being and growth.

Application: Effective in fostering a collaborative and supportive organizational culture.

Example: Tech companies like Google emphasize employee-friendly policies, flexible work hours, and continuous learning opportunities.

4. Collegial Model:

Description: In the collegial model, the organization is viewed as a partnership where employees and management work collaboratively towards common goals. In the collegial model, the organization is considered as a partnership where employees and management work collaboratively towards shared goals. Decision-making is often a collective process with a strong emphasis on mutual trust and respect. This model is particularly relevant in knowledge-based organizations where expertise and collaboration are crucial for innovation and problem-solving.

Characteristics: Shared decision-making, mutual trust, and respect.

Application: Suitable for knowledge-based organizations where expertise and collaboration are crucial.

Example: Law firms often embody the collegial model, with partners collaborating on cases and decisions.

5. System Model:

Description: The system model views organizations as interconnected and interdependent components influenced by external factors. It perceives organizations as dynamic entities influenced by both internal and external factors. It emphasizes the interconnectedness of different organisational components and recognizes the impact of external forces. This model is beneficial for analyzing organizational dynamics and adapting to changes in the business environment by considering the system as a whole.

Characteristics: Focus on the organization’s attributes as a dynamic, environment-influenced entity.

Application: Useful in analyzing the impact of external forces and adapting to changes in the business environment.

Example: A manufacturing company adopting a just-in-time production system to respond efficiently to market demand reflects the system model.

6. Sociotechnical Model:

Description: The sociotechnical model emphasizes the interaction between social and technical aspects of work, aiming for optimal integration. The sociotechnical model stresses the interaction between social and technical aspects of work design. It seeks to achieve optimal integration of both elements, acknowledging that technological changes can have profound social implications. This model is applicable in situations where technological advancements impact work processes and organizations need to strike a balance between technical efficiency and human well-being.

Characteristics: Focus on both social and technical aspects of work design.

Application: Relevant in situations where technological changes impact work processes and require social adjustments.

Example: Companies implementing employee-friendly technologies and work processes, like remote collaboration tools, align with the sociotechnical model.

7. Contingency Model:

Description: The contingency model suggests that there is no one-size-fits-all approach, and the effectiveness of organizational behaviour practices depends on the specific situation. The contingency model proposes that there is no universal approach to organizational behaviour, and the effectiveness of practices depends on the particular context. Organizations must adapt their strategies based on contextual factors such as the nature of tasks, organizational culture, and environmental conditions. This model is precious in dynamic environments requiring flexible and context-specific responses.

Characteristics: Adaptive strategies based on contextual factors.

Application: Applicable in dynamic environments where organizational responses must be flexible and context-specific.

Example: A company adapting its marketing strategy based on regional preferences and market conditions follows the contingency model.

8. Chaos Model:

Description: The chaos model acknowledges organizations’ unpredictability and complexity, focusing on adapting to chaos and uncertainty. It encourages organizations to embrace change, be flexible, and respond quickly to chaotic and uncertain situations. This model suits organizations operating in turbulent and rapidly changing environments where traditional, rigid structures may be less effective, and an adaptive, responsive approach is crucial for survival and success.

Characteristics: Embracing change, flexibility, and responsiveness.

Application: Suited for organizations operating in turbulent and rapidly changing environments.

Example: Start-ups often operate in dynamic industries, embracing the chaos model by iterating quickly on strategies to respond to market shifts.

Understanding these models helps organizations choose appropriate leadership, decision-making, and employee engagement approaches based on their unique contexts and goals.

1.7 Limitations of Organizational Behaviour

1. Organisational behaviour cannot eliminate or diminish conflict and frustration. It is a means of improving but not a complete solution to problems.

2. It is just one of several processes at work within a more extensive social system.

3. People who lack system awareness may create a ‘behavioural basis,’ which gives them a narrow viewpoint, i.e., a tunnel vision that focuses on gratifying employee experiences while overlooking an organization’s broader system about all of its public.

4. The rule of decreasing returns also applies to organisational conduct. It states that increasing a favourable activity eventually produces declining and sometimes negative results. The concept argues that there is an optimum amount of a desired practice for any given situation. When that point is reached, returns begin to fall. Too much security, for example, may result in less employee initiative and progress. This link demonstrates that organisational performance is attained not by maximising one person variable but by balancing all system factors.

5. One major issue with organisational behaviour is that its knowledge and skills could be exploited to influence individuals without consideration for human happiness. People who lack ethical standards may exploit others in unethical ways.

Curriculum

Organizational Behaviour