ORGANIZATION
BEHAVIOUR
INTRODUCTION
Organizational behaviour is an essential for a firm to achieve
effectiveness in it activities .
It refers to the behaviour of individuals and groups within
organizations and the interaction between its members and their external
environment.
The study of organizational behaviour gives insight on how
employees behave and perform in the workplace. It helps us develop an
understanding of the aspects that can motivate employees, increase their
performance, and help organizations establish a strong and trusting
relationship with their employees.
DEFINITION
Organizational behaviour is the study and application
of knowledge, how people act or behave within the
organization.
Organizational behavior is directly concerned with the
understanding, prediction, and control of human
behavior in organizations.” — Fred Luthans.
Organizational behavior is the study of both group
and individual performance and activity within an
CONCEPTS OF ORGANIZATIONAL
BEHAVIOUR
Organization is a structured framework within which
various efforts of people are coordinated and related to
each other to achieve the desired goals.
Concept of organization behaviour is depend on
individual differences , a whole person , caused
behaviour , human dignity. Organization are social
systems , mutuality of interest with holistic concept .
1. OB is the study of learning how to predict human behavior and, then, apply it in some
useful way to make the organization more effective. It helps in the effective utilization
of people working in the organization guarantees the success of the organization.
2. OB helps the managers to understand the basis of motivation and what he should do
to motivate his subordinates.
3. OB helps to maintain cordial industrial relations which help to increase the overall
productivity of the industry.
4. It helps greatly in improving bur inter-personal relations in the organizations.
5. It helps managers apply appropriate motivational techniques in accordance with the
nature of individual employees who exhibit a learning difference in many respects.
CHARACTERISTICS OF OB
Purposeful
Activity based
Social process
Integrative process
Group activity
Multidisciplinary subject
Intangible – Self confidence, Responsibility
Organization behaviour is the field of study.
• Organization behaviour is concern with the study of what people do in an
organization and how the behaviour affects the performance of the
organizations .
• Organizational behaviour is the way of thinking .
• Organization behaviour is a system and can be systematically studied .
OBJECTIVES OF OB
The primary objective of Organization behavior is
achieving higher productivity and accomplishing
the goals of the organization.
For that OB scientifically tries to understand the
employee behavior within the organization and
tries to control, improve, develop it.
1. Job Satisfaction.
2. Finding the Right People.
3. Organizational Culture.
4. Leadership and Conflict Resolution.
5. Understanding Employees Better.
6. Understand how to Develop Good Leaders.
7. Develop a Good Team.
8. Higher Productivity.
ELEMENTS OF ORGANIZATIONAL
BEHAVIOUR
People :
People are the main resources of
any organization.
It is the individuals who constitute the
organization.
Organizational behaviour is a
field where the study of human beings and
their behaviour is involved .
STRUCTURE
• Organization is the social system .
Any social system has its own structure and that could
be either formal or informal .
The company is a formal organization Informal
organization are formed by individual depending on
various factors such as team works , either during the
performance of a particular task or during lunch
breaks .
ENVIRONMENT
• There are two types of environment .
The internal environment includes, the working
environment, individual attitudes etc.
The external environment comprises factors such as
government rules and procedures, customers of the
company, etc both the internal and external environment
affects the organization.
TECHNOLOGY
• This means the materials, equipment, machines
and systems with which the individual work.
The company purchases technology tools purposes
of production and services, and this is the important
element of an organization behavioural system.
THEORIES OF
ORGANIZATIONAL BEHAVIOUR
THEORIES OF ORGANIZATIONAL BEHAVIOUR
Organizational theories are classified into
three categories :
1-Classical theory
2-Humanistic Theory
3-Modern organizational theory
CLASSICAL DOCTRINE
Classical doctrine is the oldest theory in the study of
organizations .
It emphasizes rigid, centralized control of workers to
promote high production .
An institution organized under the classical theory tends to
treat workers in a mechanical yet objective way .
Such an institution is very efficient in accomplishing its
Contd…..
Frederick taylor is considered as the father of classical
theory and father of scientific management .
High production was his primary concern in developing this
theory .
He believed that high production could be achieved by
paying high wages .
In his opinion, it was possible to pay high wages and still
have an overall low labour cost .
Contd…..
Taylor ’scientific management approach involves timing
various work activities with a stopwatch .
The purpose is to determine the exact time in which a worker
should be able to accomplish a task .Workers can be given a
large task, but one they are able to accomplish .
Further, in the classical approach, strict obedience to
authority is expected. workers must do the handwork exactly
as they are told by their superiors .
HENRY FAYOL
Fayol identified 14 principles of management given below ,
1. Division Of Work
–Work is broken down into specialized tasks.
2. Authority
– Employer have the right to give orders and expect them to be obeyed.
3. Discipline
–The employee is expected to be obedient to the
institution .
4. Unity Of Command
– An employee should receive orders from only one superior .
Contd….
5. Unity Of Direction
–There is only one person at the top of the institution and
he/she has only one plan for the institution
6. Subordination Of Individual Interest To General Interest
– Institutional goal and activities always come first.
7. Remuneration Of Personnel
– Salary should be fair and as far as possible, satisfactory to
both employer and employee .
8. Centralization
– All communication comes from and goes to the person at the
top of the institution .
Contd..
9. Scalar Chain
–There is a chain of superiors, ranging from the person at the top to
the employee at the bottom of the institution
10. Order
–There is a place for everyone .
11. Equity
– All persons in the institution will be treated alike .
12. Stability Of tenure For Personnel
– A prosperous institution has stable workers
13. Initiative
–With the limits of respect for authority and discipline , the employee
has the freedom to propose and execute a plan .
14. Espirit de corps
- we feeling.
HUMANISTIC SCHOOL
• The humanistic theory, also called Behaviour / Neoclassical
Theory, identifies two major functions of organization:
One maintain the external balance, that is the economics (the focus
of classical theory)
and the other maintaining the internal balance, that is the social
organization of the workers through which they stratify their own
desires and needs .
Contd..
It has specific three functions-
1. Communication among workers
2. Maintenance of cohesiveness among workers through a
willingness to serve and accept authority .
3. Maintenance of feeling of personal integrity , self –
respect and independent choice .
MODERN ORGANIZATION THEORY
It began in the late 1950‘s as researchers recognized that in the
humanistic as well as in the classical approach something was missing.
It consists of two main approaches :
system and contingency
The theory comes from the fields of sociology, economics,
mathematics, engineering , administration .
Contd..
Organizational behaviours can not abolish
conflict and frustration but can only reduce
them.
It is only one of the many systems operating
within a large social system .
contingency theory
The contingency theory is simply an extension of the
systems organizational theory. According to this theory,
there is no particular managerial action or organizational
design that is appropriate for all situations.
Infact, the design, as well as the managerial decision,
depends on the situation. In other words, it is contingent
on the situation and circumstances. Therefore, the
Contingency Theory is also referred to as a situational
theory.
