ORGANISATION

BEHAVIOR
Wezzie T. kapunda (MBA)
0882595998
ORGANIZATION

 Is a coordinated social unit, composed of two or more people (a group

of people), which functions on a relatively continuous basis to a
achieve a common goal or set of goals.
 Organization are social structures.

 Organizations are often referred to as if they have a life of its own.

 Organizations cannot behave independently of the people that form
them.

 Even though this is the case management has a role of encouraging

employees to believe that the organization is a separate entity.
 Organization is never exactly the same phenomenon[special or
remarkable] from one moment to the next. This is so because it is
composed of human beings.
ORGANIZATIONAL BEHAVIOR

 Organizational Behavior is the field of study that investigates the

impact that individuals, groups have on behavior within
organizations, for purposes of applying such knowledge towards
improving an organization's effectiveness (Stephen Robins)
 Organizational Behavior is the study and application of knowledge
about how people (individuals & groups) act within an organization. It
strives to identify ways in which people can act more effectively
(Keith Davis)
 Organizational Behavior is the understanding, prediction, and
management of human behavior and how it affects the performance
of the organization (Luthans)
 “OB is the study and understanding of individual and group behavior,
patterns of structure in order to help improve organizational
performance and effectiveness” Mullins, 2005
 According to Armstrong (2009) “OB is the term used to describe how
people within their organizations act, individually or in groups.”
• Organizational Behavior is the study of human behavior in an
organizational setting
• Organizational behavior studies the impact of human behavior on the
organization
• Organizational behavior studies 3 determinants of behavior in
organizations
– Individuals
– Groups
– Structure or organizational processes
 It is a part of the management process which aims at improving the
performance of organizations through understanding and controlling
human behavior.
 It is through the organizational behavior that organizations are able
to understand the behavior of the people working with them.
 Once they get to know about their peoples, organizations can easily
influence and motivating them towards achievement of goals.
 It helps to improve the relations between the people working in the
organization and increase their efficiency. There are two main factors
which are studied under organization behavior term: Individual’s
nature and the organization's nature. After understanding both the
terms properly efforts are made to develop better compatibility
between these two terms.
Characteristics of OB

 It is a way of thinking about individuals

 It is multidisciplinary- it uses principles, models, theories and methods
from other disciplines
 It is performance oriented- it deals with performance issues
 On going process- OB is continuous within the organization. It continuously
makes an effort to ensure organization effectiveness. All activities of the
organization are continuously monitored through OB
 Goal oriented- OB is goal oriented and action oriented field of study. Its
main aim is to manage the organizational affairs to achieve the goals of
organization timely. OB performs several researches and detects problems
in the organization, it mainly analyze the behaviors of individuals working
with the organization. After analyzing and detecting problems it take
corrective actions and ensure result yielding actions in organization
 Multi-level analysis- there are different level analyses which are
performed by organization behavior, OB performs analysis at 3 levels
to understand the behavior: individual behavior, group behavior and
organization behavior itself. It performs all these analyses
systematically to better understand the organizational affairs. It
provides rational thinking about these three-level to avoid any
misconceptions about behavior.
 Branch of social science- OB uses various concepts of social science
in performing various researches required for understanding
organization structure. It is influenced by several social sciences,
sociology, anthropology and psychology are some of important social
science used by OB. These disciplines provide organizational behavior
with rich information necessary to performing its function.
 Both science and art- OB is termed as both science and art, it implies
performing several researches and collecting data systematically
regarding behavior. The collected information is then used to control
and manage problems in organization. Collection of all relevant
information systematically about human behavior is termed as
science. Application of collected behavioral knowledge and skills in
the organization is known as art.
Contributing disciplines to OB

 Psychology
 Sociology
 Social psychology
 Anthropology
 Economics
 Political
Psychology

 The science that seeks to measure, explain and sometimes change

the behavior of humans and other animals
• Psychology helps to predict the behavior of individuals to a great
extent by observing the dynamics of personal factors, environment
and situational factors
• Understanding the psychological principles & models helps in gaining
knowledge of determinants of behavior (eg. Learning processes,
motivation techniques, personality determinants)
• Psychology contributes to OB through the study of
– fatigue, boredom and other working conditions that negatively affects
performance/productivity.
– Perception - Needs
– Motivation - Job satisfaction
– Training - Leadership effectiveness
Sociology

 The study of social systems in which individuals fill their roles

 Attention is centered in group dynamics
 Sociology’s contribution to OB is through the study of group behavior
in organizations, Organizational culture, Communication, Power and
conflict
Social Psychology

 Blends the concepts of psychology & sociology

 Social psychology is the scientific investigation of how thoughts,
feelings and behavior of individuals are influenced by the actual,
imagined or implied presence of others
 It focuses on the influence of people on one other Social psychology
focuses on how groups, organizations, social categories & societies
are organized, how they function and how they change
 Social psychology contributes to OB through conformity, persuasion,
obedience, discrimination, stereotyping, etc
Anthropology

 Aims at understanding the relationship between human beings and

their environment
 It focuses on culture and environment
 Anthropology contribute to OB through the study of comparative
values, comparative attitudes, cross-cultural analysis between &
among employees
Economics

 Economics is a science of production, distribution and consumption of

goods and services.
 Economics provides insights into the aspects of decision and choice,
factors that need to be considered while choosing the most suitable
option, policies that affect the economic growth of a firm and
allocating limited resources to competing alternatives.
Political Science

 Political science involves the study of individual and group behavior

within a particular political environment. It has made significant
contribution in the areas of structuring of conflict, allocation of power,
politics within the organization and the overall administrative
process.
 Political science has contributed immensely in developing a general
theory of human behavior at work. Various disciplines tend to study
very specific and narrow aspects of human behavior, resulting
in fragmentation of knowledge. Behavioral science must attempt to
integrate the concepts and principles from all the disciplines to make
a comprehensive study of human behavior.
Importance's of OB

 Improving Quality and Productivity. The organizational behavior helps

to improve quality and productivity since different people have
different ideas and when they come together they come up with
excellent results.
 Improving People Skills. Organization behavior helps to improve
employees skills due to biodiversity.
 Personal growth. One is able to develop skills from others.
 Enhancing organizational and individual effectiveness. This implies
that the organizational is productive and satisfies the demand of its
customers( mullins)
Improves The Satisfaction Of Employees
 Organization behavior is mainly concerned with understanding the
nature of peoples working in the organization.
 It gives the complete idea of how people will respond to the
organization.
 This helps employers in treating their employees properly and
providing them with better facilities.
 Managers handle every employee differently as per their nature.
 Employees also get work as per their interest and better working
conditions.
 Employees are awarded on the basis of their performance.
 It leads to increase overall satisfaction level of all employees.
Reduce The Chances Of Conflicts
 Conflict is dangerous for successful functioning and growth of every
organization.
 Every business aims to avoid conflict with their employees.
 Organization behavior helps in developing better relations among
employees and also among employer and employee.
 There is active participation of every person in decision-making
working in the organization.
 It avoids all chances of the difference of opinions because the opinion of
every individual working is considered.
 This way it reduces the chances of conflicts and helps in maintaining a
peaceful environment.
Facilitates Management
 Organization behavior is considered as an important and integral part of
the management process.
 It is basically concerned with managing and influencing the individuals
working in an organization.
 Managers find it easy to manage all the staff when they have a better
understanding and knowledge regarding their subordinates.
 Organization behavior does a systematic analysis of peoples working in
the organization and provides all the required information to employers.
 It performs analysis of individual behavior, group behavior and
organization behavior.
 This helps in better management of organization affairs.
Helps In Motivation
 Companies develop a better system of motivating their employees
through organizational behavior.
 Through organizational behavior, complete information regarding
employee’s need and requirement is well understood. It makes it easy
to understand the individual differences and similarities of all people
working at different positions within the organizations.
 Organizations by focusing on their needs and requirements can
motivate their employees.
 Motivated employees work efficiently toward the achievement of the
company’s goals.
Increases Organizational Efficiency
 It aims at increasing the efficiency of the organization through
maximum utilization of resources.
 Organizational behavior attempts to reduce the wastage of resources.
 It helps in the identification of the right type of human skill required
for the organization for better productivity.
 Accordingly, the selection and recruitment process is conducted to
hire the right peoples.
 It minimizes the wastage of cost and time involved in these
processes.
 It also helps to recognize the skills and knowledge of different
employees working within the organization.
 So accordingly organizations can design their training and
improvement programs to improve their employee’s skills.
 This will increase the effectiveness of organization programs thereby
increasing the overall efficiency.
Develops Positive Attitude
 Organizational behavior develops a positive working environment
within the organization.
 It leads to co-operation and mutual trust among peoples working in
the organization.
 It makes it easy to predict the individual’s behavior, needs and
requirements.
 Organization can accordingly focus on employee’s needs and work
for their betterment to increase their satisfaction level. Employees
also develop a sense of belongingness towards the organization when
treated properly.
 They feel that the organization cares for them.
 This way the relationship between employer and employee are
improved.
Helps In Performance Appraisal
 Performance appraisal is an important element for improving the
performance of the employees.
 Employees when awarded for their good performance feel motivated to
work better.
 They look forward to being appraised for their good performance.
 Organizational behavior helps to understand the nature and the manner
in which people reacts in the organization.
 It enables it to predict how peoples are working as an individual and as
a group.
 Their performance can be measured easily and accordingly, they can be
appraised.
Objectives of organizational
behavior are:-
Understands employees behavior
o Organizational behavior plays an efficient role in understanding the
behavior of people working within organization.
o It acquires and provides all information regarding behavioral aspects
of employees to managers.
o Managers are able to get which employees behave in what way while
performing their roles.
Enhancing Organizational Efficiency
 It helps in increasing the overall efficiency of organization.
 Organizational behavior aims at fuller utilization of all resources and
eliminating the wastage.
 It enables managers in selecting the right personnel and matching
them with right job by properly understanding their behavior.
Motivating Employees
 It supports managers in motivating the people working under them
towards their roles.
 Managers with application of organizational behavior are easily able
to identify their needs and problems.
 They develop better understanding towards them.
 By focusing and fulfilling their needs efficiently, they can be
motivated to work with full dedication towards achievement of
desired targets.
Stimulates Innovation And Change
 Every business is required to keep itself updated in terms of
technological changes to beat competition in market.
 Organizational behavior studies all market changes and requirements
from time to time.
 It provides all such information to management for implementation
of required market changes within the organization.
 It support business in bring innovative and differentiated products in
market at minimized cost.
Optimum Utilization Of Employees
 Organizational behavior focuses on fuller utilization of all resources.
 It enables managers to understand the working styles of employees
and their skills and weakness.
 Management with the help of proper understanding can impart
proper training and develop employees for using them in an optimum
way.
 It ensures that right man is placed at right job and delivers efficient
output.
An organizational Behavior System

Organizations achieve their goals by creating, communicating, and

operating an organizational behavior system.
The primary purposes of organizational behavior systems are to
identify and then help manipulate the major human and
organizational variables that affect the results organizations are
trying to achieve.
Elements of the System

a) The philosophy and values: It means an integrated set of

assumptions and beliefs about the way things are of the
organization, the purposes of these activities and the way they
should be. The philosophies may be –autocratic, custodial,
supportive etc. The philosophy of organizational behavior
originated from two sources- Fact premises and Value premises.

1. Fact premises represent our descriptive view of how the world

behaves. They are drawn from both behavioral science research
and our personal experiences.
2. Value premises represent our view of the desirability of certain goals
and objectives . These are a variable beliefs we hold and therefore
under our control.
b) Vision: It means a challenging portrait of what the organization and
its members can be a possible and desirable future. It basically
focused on achieving long-term goals and objectives.
c) Mission: It identifies the business it is in the market niches it tries to
serve the types of customers it is likely to have, and the reasons for
its existence. In contrast to vision, mission statements are more
descriptive and less future oriented.
d) Goal: Goals are relatively concrete formulations of achievements the
organization is aiming for within set periods of time, i.e.. one to five
years. Goals may exist at the individual , group and larger
organizational level. Goals are more specific.
An Organizational Behavior System
Management’s
Philosophy and Values, Vision, Mission, Goals

Formal Organization Organizational Culture Social Environment

Informal Organization Leadership, Communication,

Group dynamics

Quality of work life

Motivation

Outcomes:
1. Performance
2. Employee satisfaction
3. [email protected]
growth & development 34
Philosophy and values, vision, mission, goals all help to create a
recognizable organizational culture. This culture also a reflection of
the formal organization with its formal policies, structures and
procedures and the existing social and cultural environment. The
formal and informal organizations provide the glue that binds the
varied elements of the institution into an effective working team.

Managers are then expected to use a leadership style, communications

skills and their knowledge of interpersonal and group dynamics to
create an appropriate quality of work life for the employees.
The five models of organizational behavior are
the:

 Organizations differ in the nature of the systems they develop and

maintain and in the results they achieve. Varying results predictably follow
from different models of OB.
 These models constitute the belief system that dominates management’s
thought actions in each organization. Five models of OB have been seen as
follows;

a) Autocratic model,
b) Custodial model,
c) Supportive model,
d) Collegial model and
e) System model
The selection of a model by manager is determined by a number of
factors.
The prevailing philosophy, values, vision, mission and goals of managers
affect, and are affected by, their OB model. In addition
environmental conditions help determine which model will be most
effective.
Autocratic model
is the model that depends upon strength, power and formal authority.
 In an autocratic organization, the people (management/owners) who
manage the tasks in an organization have formal authority for
controlling the employees who work under them.
 These lower-level employees have little control over the work
function.
 Their ideas and innovations are not generally welcomed, as the key
decisions are made at the top management level.
The guiding principle behind this model is that management/owners
have enormous business expertise, and the average employee has
relatively low levels of skill and needs to be fully directed and guided.
This type of autocratic management system was common in factories in
the industrial revolution era.
One of the more significant problems associated with the autocratic
model is that the management team is required to micromanage the
staff – where they have to watch all the details and make every single
decision.
Clearly, in a more modern-day organization, where highly paid
specialists are employed an autocratic system becomes impractical
and highly inefficient.
The Custodial Model
 Custodial model seek to make employees feel as if the boss caring for
their personal needs
 It depends on economic resource
 Since employees physical needs are already met, the employer look to
security needs as a motivating factor e.g good salary
 In their worst these welfare programs later became known as
paternalism.
 To satisfy the needs of employees, a number of companies began
welfare programs in the 1890s
 In the 1930s welfare programs evolved into a variety of fringe benefits
to provide employee security.
 Employers-and unions and government-began caring for the security
needs of workers (rewards & benefits).
 A successful custodial approach depends on economic resources.
 The resulting managerial orientation is toward money to pay wages
and benefits.
 Mgt orientation, to support the employees job performance rather
than to simply support employee benefits The custodial approach
leads to employee dependence on the organization rather than being
dependent on their boss.
 As a result of their treatment, they are well maintained and
contented.
The Supportive Model
 The supportive model depends on leadership instead of power or money.
 Through leadership, management provides a climate to help employees grow
and accomplish in the interests of the organization the things of which they
are capable.
 Management’s orientation, therefore, is to support the employee’s job
performance rather than to simply support employee benefit payments as in
the custodial approach
 The supportive model of organizational behavior tends to be especially
effective in affluent (rich) nations bcz it responds to employee wide array of
needs
 It has less immediate application in the developing nations, because their
employees current needs and social conditions are often quite different
The Collegial Model
 A useful extension of the supportive model is the collegial model.
 The term ‘collegial’ relates to a body of people working together co-
operatively.
 This model embodies a team concept, first achieved widespread
applications in research laboratories and similar work environments.
The collegial model depends on management’s building a feeling of
partnership with employees.
 Managers are seen as joint contributor rather than as boss.
 Moreover, the managerial orientation is toward teamwork by which
the employee response to this situation is responsibility
 In this kind of environment employees normally feel some degree of
fulfillment, worthwhile contribution, and self actualization, even
though the amount may be modest in some situations.
 This self-actualization will lead to moderate enthusiasm in
performance.
 The System model
 An emerging model of OB is the system model. It is the result of a strong
search for higher meaning at work by many of today’s employees; they want
more than just a paycheck and job security from the jobs.
 In the system model the org looks at the overall structure and team
environment
 Individual have different goals, talent and potential
 Apart from salary, job security but also want to work in a positive work
environment where the org adds value to community and customers
 System act as a partnership of managers and employees with a common
goal, where everybody feels that they have a stake in the organisation
 To accomplish this, managers must increasingly demonstrate a sense of
caring and compassion, being sensitive to the needs of a diverse workforce
with rapidly changing needs and complex personal and family needs.
 Under the system model, managers try to convey each worker, ‘you
are an important part of our whole system…..’. The role of a manager
becomes one of facilitating employee accomplishments through a
variety of actions (e.g. John W. Newstrom; Organizational Behavior;
11th edition; page 40)
 In response, many employees embrace the goal of organizational
effectiveness, and recognize the mutuality of company-employee
obligations in a system viewpoint.