Unit 4: Organizational Behaviour
Definition of Organizational Behavior (OB)
Organizational behavior (OB) is the study of how individuals, groups, and organizational structure
affect behavior within organizations.
The goal is to use this knowledge to improve organizational effectiveness.
It focuses on three main factors:
1. Individual behavior,
2. Group behavior,
3. The structure of organizations,
and how these elements interact to help organizations function better. OB also considers how
members interact with their external environment.
Disciplines That Contribute to Organizational Behavior:
1. Psychology: Focuses on understanding, measuring, and sometimes changing human and animal
behavior. Key contributors to OB include learning and personality theorists, counseling
psychologists, and especially industrial-organizational psychologists.
2. Social Psychology: Helps in understanding and changing attitudes, communication patterns, and
building trust. Social psychologists also study group behavior, power, and conflict within
organizations.
3. Sociology: Contributes to OB by studying group behavior in formal and complex organizations,
offering insights into organizational dynamics.
4. Anthropology: Focuses on the study of societies and human activities, helping us understand
organizational culture, environments, and differences among national cultures.
Scope of Organizational Behavior (OB):
OB focuses on the study of human behavior within organizations. It includes:
1. Intra-personal behavior: Involves aspects like personality, attitudes, perception, learning,
motivation, and job satisfaction of individuals.
2. Interpersonal behavior: Covers group dynamics, leadership, communication, conflict between
groups, and transactional analysis.
3. Organizational behavior: Examines the formation, structure, and the role of both formal and
informal organizations.
FORCES INFLUENCING OB
People:
Organizations are made up of individuals and dynamic groups working together to achieve goals.
The diverse workforce, with varying backgrounds and talents, presents challenges for managers
who must adapt to these differences.
Companies urge managers to embrace diversity by promoting inclusivity, empowerment, and
demonstrating openness, confidence, and compassion.
Structure:
Structure defines the formal relationships and roles within an organization, organizing employees
like managers, accountants, and assemblers to coordinate their work effectively.
Many organizations have become flatter due to downsizing and restructuring aimed at reducing
costs while staying competitive. Others have grown more complex due to mergers, acquisitions, and
new ventures.
Technology:
Technology provides the tools and resources employees use, significantly impacting their tasks and
working relationships. While it enables people to do more and better work, it also imposes certain
restrictions. Technological advancements create pressure on organizational behavior to balance
technical systems with social systems effectively.
Environment:
All organizations function within both internal and external environments and are part of a larger
system that includes government, families, and other organizations. Environmental changes create
challenges, as organizations face expectations for social responsibility, global competition, and the
rapid pace of societal change.
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