the origin to the study of Organisational Behaviour can
trace its roots back to Max Weber and earlier
organisational studies, it is generally considered to have
begun as an academic discipline with the advent of
scientific management in the 1890's.
“PETER DRUCKER” stated that, “young people today will have to learn organizations the way their
forefathers learnt farming”.
6. Organizational Behaviour Today
People at work in organizations today are part of a new era. The
institutions of society and the people who make them work are
challenged in many and very special ways. Society at large
increasingly expects high performance and high quality of life to
go hand-in-hand, considers ethics and social responsibility core
values, respects the vast potential of demographic and cultural
diversity among people, and accepts the imprint of a
globalization on everyday living and organizational
competitiveness. In this new era of work and organizations, the
body of knowledge we call “organizational behaviour” offers
many insights of great value.
Virtually all organizations have managers with titles such as chief
financial officer, marketing manager, director of public relations,
vice president for human resources, and plant manager. But
probably no organization has a position called “organizational
behaviour manager.” The reason for this is simple: Organizational
behaviour is not a defined business function or area of
responsibility similar to finance or marketing. Rather,
understanding of organizational behaviour provides a set of
insights and tools that all managers can use to carry out their jobs
8. “When you think about employees first, the bottom line is better.”
Organizational behaviour- it is made out of two words "organization" and
What is an organization?
Organization as two or more individuals who are interacting with each other within a deliberately
structured set up and working in an interdependent way to achieve some common objective/s.
What is Behavior?
It is the behavior of the people working in an organization to achieve common goals or objectives.
Organization comprises of people with different attitudes, cultures, beliefs, norms and values.
“Ob refers to the behaviour of individuals and groups with in organizations and the interaction
between organisational members and their external environments” . Aswathappa
“ob is a field of study that investigates the impact that individuals , groups structure have on
behaviour within organizations for the purpose of applying such knowledge towards improving an
organization’s effectiveness”. Stephens robbins p
“organizational behaviour is the study and application of knowledge about how people act in
“organizational behaviour is directly concerned with the understanding, prediction, and control of
human behaviour in organizations”. Fred Lunthas
“ob is concerned with the study of the structure, functioning and performance of organisations,
and the behaviour of groups and individuals within them”. pugh
10. “ ob is concerned with the study of what people do in an organization and how their behaviour
affect the organization’s performance”.
“ob is a subset of management activities concerned with understanding, predicting and influencing
individual behaviour in organisational setting”. Callahan, Fleeenor and kudson
“Organisational behaviour can be defined as the study and application of knowledge about human
behaviour related to other elements of an organisation such as structure, technology and social
systems.” According to L. M. Prasad,
According to Davis and Newstram,
“Organisational behaviour is the study and application of knowledge about how people act with in
Organizational behaviour (OB) is the study of what people think, feel, and do in and
around organizations. OB researchers systematically study individual, team, and
organizational-level characteristics that influence behaviour within work settings.
Google has become a powerhouse on the Internet, but its real power comes from
applying organizational behaviour theories and practices. More than ever,
organizations are relying on organizational behaviour knowledge to remain
competitive. For example, Google has an engaged workforce because of its exciting
work opportunities, supportive team dynamics, and “cool” workplace. It attracts
talented people through its strong culture and ethical values and an environment
that supports creativity and a learning organization. These and many other
organizational behaviour concepts and practices make a difference in the
organization’s success and employee well-being.
Organizational behaviour (often abbreviated as OB) is a field of study
that investigates how individuals, groups, and structure affect and are
affected by behaviour within organizations. Behaviour refers to what
people do in the organization, how they perform, and what their
attitudes are. Because the organizations studied are often business
organizations, OB is frequently applied to address workplace issues such
as absenteeism, turnover, productivity, motivation, working in groups,
and job satisfaction. Managers often apply the knowledge gained from
OB research to help them manage their organizations more effectively.
13. Why we need to OB
“People are the key ! .The technology can be purchased and copied; it levels the playing ﬁeld. The
people, on the other hand, cannot be copied. Although it may be possible to clone human bodies,
their ideas, personalities, motivation, and organization cultural values cannot be copied.
knowledge and comfort with this subject grow, you will become increasingly skilful in analysing and
understanding the behavioural implications of organisational problems.
you will become acquainted with the latest developments in the field.
effectiveness and productivity of the organisation.
employee attitudes and motivation to work, leadership, group formation and group decision
Due to global competition, it is becoming necessary for the employees to become more flexible
and to cope with rapid changes.
can increase creativity and innovation in organizations as well as improve decision making by
providing different perspective on pre-plans.
continuous improvement of all organizational processes (productivity, absenteeism, turnover, job
satisfaction and recently added fifth dependent variable is organizational citizenship).
14. OB applies equally well to all situations in which you interact
with others. In fact, OB is relevant anywhere that people
come together and share experiences, work on goals, or
meet to solve problems.
Understanding self and others.
Motivation of human resources.
Effective organizational climate.
Good human relations.
Introduction of change in the organization.
16. NATURE OF O.B
It is a field of particular study, not a discipline.
it is an interdisciplinary action/ approach.
It is an applied science.
It is always normative and value centre.
It is always humanistic and optimistic.
It is oriented towards organizational objectives.
It is always system approach.
It is the study of application and knowledge how people react with
in the organization.
18. 1)Individual differences: each person in the world is individually different. Each one is different from the others
in several ways. E.g., Whether it is intelligence, physique, personality, direction, or any such trait. The idea of
difference comes from psychology. From the day of birth, each person is unique and individual experiences after
birth make people even more different. Individual differences mean that management can cause the greatest
motivation among employees by treating them differently.
2)A whole person: when an individual is appointed, his/her skill alone is not hired, his/her social background,
likes and dislikes, pride and prejudices are also hired. A person’s family life can’t be separated from his or her
work life. It is for this reason that managers should endeavour to make the workplace a home away from home.
3)Caused behaviour :the behaviour of the employee is caused and not random. This behaviour is directed
towards some one that the employee believes, rights or wrongly, is in his interest. Thus, when a worker comes
late to his or her work, abuses the supervisor, there is a cause behind it. The manager must realize this basic
principle and correct this behaviour and tackle the issue at its root.
4)Human dignity: people are to be treated differently from other factors of production because they are of a
higher order in the universe. It recognizes that people want to be treated with respect and dignity should be
treated. Every job, however simple, entitles the people who do it to proper respect and recognition of their
unique aspirations and abilities. Ethical philosophy is reflected in the conscience of humankind, confirmed by
the experience of people in all ages.DDS 18
19. 5) Orgnizations are social systems: people have psychological needs, they also have psychological
needs, they also have social roles and status. Infact, two types of social systems exist side by side in
the organizations. One is the formal system and the other is the informal social system.
The existence of a social system implies that the organizational environment is one of dynamic
change, rather than a static set of relations as revealed in an organization chart. All parts of the
system are interdependent and are subject to influence by any other part.
6)Mutuality of interest: organizations need people and people also need organizations. People see
organizations as a means to help them reach their goals, while, at the same time, organizations
need people to help attain organizational objectives.
7)Holistic concept :this concept interprets people-organization relationships in terms of the whole
person, whole group, whole organization, and the whole social system. It takes an all encompassing
view of people in organizations in an effort to understand as many of the possible factors that
influence their behaviour.
8)Need for management: management is the attainment of organizational goals in an effective and
efficient manner through planning, organising, leading, and controlling organizational resources, of
course making use of the knowledge about ob.DDS 19
20. the people who plan, organize, lead and control constitute “managers” popularly called
“executives”. Success or failure of an organization squarely depends on these people.
Managers use a multitude of skills to perform the functions.
23. The scope of the organizational behaviour
It is the study of human behaviour with in the organizations.
It is the study of individual behaviour, interpersonal behaviour, and organizational behaviour.
Intrapersonal behaviour covers such aspects as personality, attitude, perception, learning, opinion,
motivation, job satisfaction, and stress management.
Interpersonal behaviour includes group dynamics, team dynamics, inter group conflict, leadership,
communication, transaction analysis.
Organizational behaviour includes formation, structure, effectiveness, formal and informal.
The people constitute the internal social system of the organization. They consist of individuals and groups.
Groups may be large or small, formal or informal, official or unofficial. They are dynamic. They form, change .
Human organization changes everyday. Today, it is not the same as it was yesterday. It may change further in the
Structure defines the sole relationship of people in an organization. Different people in an organization are given
different roles and they have certain relationship with others. It leads to division of labour so that people can
perform their duties or work to accomplish the organizational goal.
Technology imparts the physical and economic conditions within which people work.
All organizations operate within an internal and external environment. A single organization does
not exist alone.
An organization is a part of a larger system that contains many other elements, such as the
government, the family, and other organizations. Numerous changes in the environment create
demands on organizations.
Citizens expect organizations should be socially responsible; new products and competition for
customers come from around the globe; the direct impact of unions diminishes; the dramatic pace
of change in society quickens.
30. Goals of Organizational Behavior
01- The employee absenteeism, productivity and turnover are emphasized.
02- The employee performance is determined by the organizational citizenship concept.
03- Attitudes consist of evaluative statements that are favourable or unfavourable and concern with
people, objects or events.
04- The attitude is formed from three basic elements that are cognition, effect & behaviour.
05- The beliefs, knowledge, opinions & information possessed by a person constitute the cognitive
element of that person.
06- The feelings or emotions constitute the effective element of the attitude.
07- The intention to act in a specific way represents the behavioural element of the attitude of a
08- There are three major job related attitudes which are job involvement, job satisfaction &
31. We have identified 8 objectives of organizational behaviour;
2.Finding the Right People
4.Leadership and Conflict Resolution
5.Understanding the Employees Better
6.Understand how to Develop Good Leaders
7.Develop a Good Team
32. 1) FIGUREHEAD: the manager performs ceremonial and symbolic activities for the department or
2) LEADER: to motivate subordinates for better performance.
3) LIASION: development of information sources both inside and outside the organization.
4) MONITOR: he can effectively organize and control people and other resources.
5) DISSEMINATOR: the manager transmits information to other members of the organization to
influence their attitudes and behaviour.
6) SPOKESPERSON: to promote the organization so that all the stakeholders respond positively
7) ENTREPRENEUR: the manager must decide which programmes and projects to initiate and how
to invest resources on them.
8) DISTURBANCE HANDLER: the manager assumes responsibility for handling an unexpected event
or crisis that threatens the firm’s access to resources.
9) RESOURCES ALLOCATOR: deciding how best to use people and other resources to increase
10)NEGOTIATOR: reaching agreements with others.
for eg., a supplier about a late delivery, the finance officer about the need for additional budget
allocations, or the union about a worker grievance.DDS 32
34. 1.To describe: The first objective is to describe how people behave under various conditions.
For example, as a manager, I have information about a particular junior officer that he comes office in late and
leaves the office early.
2.To understand: The second goal of organizational behaviour is to understand why people behave as they do.
Managers have to understand the reasons behind a particular action.
For example, as a manager, I must find out the reason why the junior officer is coming late and going earlier.
3.To predict: Predicting future behaviour of employee is another goal of organizational behaviour. Usually,
managers would have the capacity to predict why the employees are committed to the organization or not.
For instance, I have to realize why he wants to leave my organization, how I can hold the officer in my organization,
what should be done by me in this situation or what my role is etc.
4.To control: The final goal of organizational behaviour is to control and develop a friendly atmosphere for the
organization. Since managers are responsible for the overall performance of an organization, they must develop
workers’ teamwork, skill and commitment. Managers should take necessary action for themselves. In the above
case, I can increase the financial benefits of the officer if it is not satisfactory for him or I can help him to solve his
personal problem, or I can negotiate him to solve any organizational problem.
So, organizational behaviour is a human tool for human benefit. It is mainly used to analyse the human behaviour
in all types of organizations, such as business, government, school and services organizations. So, in order to
manage the human resources properly, we need describe, understand, predict, and control human behaviour.
35. Approaches to Organizational Behavior Studies
Organizational Behavior relates to the relationship between employees and the employer in an organization.
Both are working towards the realization of the goals and objectives of any organization, and a close and fruitful
coordination between the two is one of the major factors towards this realization.
Organizational behavior approaches are a result of the research done by experts in this field.
These experts studied and attempted to quantify research done about the actions and reactions of employees, with
regard to their work environments.
36. Human Resources Approach
The human resources approach is concerned with the growth and
development of people towards higher levels of competency,
creativity and fulfilment, because people are the central resource in
This approach help employees become better in terms of work and
responsibility and then it tries to create a climate in which they can
contribute to the best of their improved abilities.
This approach is also known as ‘supportive approach’.
Because the manager’s primary role changes from control of
employees to providing an active support for their growth and
37. contingency approach
contingency approach The idea that a particular action may have different
consequences in different situations.
This approach states that a particular action may have different consequences in
In other words, no single solution is best in all circumstances.
The contingency approach is also called situational approach.
The statement may seem evasive, yet it reflects an important way of
understanding and predicting organizational events, called the contingency
It approach to organizational behaviour implies that different situations require
different behavioural practices for effectiveness.
Each situation must be analysed carefully to determine the significant variables
that exist in order to establish the more effective practices.
This approach encourages analysis of each situation prior to action.DDS 37
39. Productivity Approach
Productivity is a ratio that compares unity of output with units of
It is often measured in terms of economic inputs and outputs.
Besides economic inputs and outputs human and social inputs and
outputs are also very important and cannot be ignored for holistic
and sustainable development.
40. The Systems approach
Organizational Behaviour views an organization as a unified, powerful
system composed of interrelated parts.
The activity of any segment of an organization affects in different
degrees the activity of another segment.
This approach gives managers a way of looking at the organization as
an intact, whole, person, whole group, and the whole social system.
According to this approach, an organization receives numerous inputs
from its environment such as material, human and financial. These
inputs are then processed so as to produce the final output in terms
of products or services.
42. Inter-Disciplinary Approach
Organizational behaviour is an integration of all other social sciences and disciplines such as
psychology, sociology, organizational theories etc.
They all are interdependent and influence each other.
The man is studied as a whole and therefore, all disciplines concerning man are integrated.
ACC TO MOORHEAD AND GRIFFIN (pic)
44. 1) Psychology: Psychology traces its origins to philosophy and the science of physiology. The
term ‘psychology’ is derived from the Greek Word ‘Psyche’ which means ‘soul’ or ‘spirit’. It is
the study of human beings as well as animals.
2) Sociology: It studies the behaviour of the people in the society in relation to their fellow
human beings. Sociology contributes to organisational behaviour through its contribution to
the study of interpersonal dynamics like leadership, group dynamics, communication etc.
3) Social psychology: Social psychology views them from an individuals perspective, explaining
how individual-level variables converge or diverge to impact group processes. For example,
individual differences in needs, abilities, experiences, traits, and personality of employees
influence the way they behave in their groups.
4) Anthropology: ‘Anthropo’ is a Greek word which means ‘man’ and ‘logy’ means ‘Science’.
Aristotle defined anthropology as a science of man’s self understanding. Anthropology is
concerned with the interactions between people and their environment, especially their
cultural environment. Culture is a major influence on the structure of organisations as well as
on the behaviour of people within organisations.DDS 44
45. 5)Political science: In recent times, political science has also started interesting
the organisational behaviourists. Political Science is usually, thought of as the
study of political systems. But political scientists are interested in how and why
people acquire power, political behaviour, decision making, conflict, the
behaviour of interest groups and coalition formation. These are also major areas
of interest in organisational behaviour. In organisations, people strive for power
and leadership recognition. Political Science helps in the management of men in
an effective and efficient manner. Political perspectives and government policies
are thoroughly analyzed for moulding and modifying the behaviour of people,
because they greatly influence the organisation. The law and order of the
country influence the people at work.
46. Organisational Behaviour and its Importance
OB provides a road map to our lives in organizations. People bring to their work place their hopes and
dreams as well as their fears and frustrations. We, therefore, need to map out organizational events
so that we can function in a more secure and comfortable environment.
It uses scientific research to help us understand and predict organizational life.
OB theories and concepts will helps us influence organizational events.
It helps an individual understand himself/herself and others better. This helps improves interpersonal
relations considerably. Like attitude, perception, leadership, communication and conflict an
understanding of which will change the very style of talking and functioning of an individual.
It will help the manager understand the basis of motivation and what he or she should do to motivate
It helps understand the cause of the problem, predict future course of action, and control its
consequences. It serves as the basis for human resource management.
47. It is useful in the field of marketing. In the dynamic mechanism of the flow of goods and services
from producer to consumer, awareness of the nature of individual and social processes has an
immediate contribution to the success or failure of the enterprise.
A successful manager should have good “people skills” which include the ability to understand
one’s employees and use this knowledge effectively to make the more efficient.
it is a discipline which enables a manager to motivate his or her subordinates towards higher
productivity and better results.
The Individual in Organizations Each individual makes assumptions about those with whom she or he works
or spends time in leisure activities.
To some extent, these assumptions influence a person’s behaviour toward others.
An effective employee understands what affects her or his own behaviour before attempting to influence
the behaviours of others.
we focus on the behaviour, attitudes, personality, motivations, and stressors of each individual. The
individual is the starting point of organizational effectiveness.
Understanding the individual is crucial for enhancing individual, team, and organizational effectiveness.
Each person is a physiological system composed of various subsystems—digestive, nervous, circulatory, and
reproductive—and a psychological system composed of various subsystems—attitudes, perceptions,
learning capabilities, personality, needs, feelings, and values.
we concentrate on the individual’s psychological system.
49. Both internal and external factors shape a person’s behaviour on the
Among others, internal factors include learning ability, motivation,
perception, attitudes, personality, and values.
Among the external factors that affect a person’s behaviour are the
organization’s reward system, groups and teams, managerial
leadership styles, organizational culture, and the organization’s
50. TEAM IN THE ORGANIZATION
Leaders and Teams in Organizations Being inherently social, an individual generally doesn’t choose to live
or work alone.
Most of the individual’s time is spent interacting with others.
Each person is born into a family, worships in groups, works in teams, and plays in groups.
A person’s identity is influenced by the ways in which other people and groups perceive and treat that
For these reasons—and because many managers and employees spend considerable amounts of time
interacting with others—a variety of competencies are usually vital to each person, team, and organization
as a whole.
Effective organizations have leaders who can integrate customer, employee, and organizational goals.
51. The ability of organizations to achieve their goals depends on the degree to which leadership abilities and
styles enable managers and team leaders to plan, organize, control, influence, and act effectively.
we examine how leaders influence others and how individuals can develop their leadership
competencies. Effective leadership involves developing multiple competencies.
How employees communicate with superiors, peers, subordinates, and others can help make them
effective team members or lead to low morale, lack of commitment, and reduced organizational
For that reason and because most managers and professionals spend considerable amounts of time
dealing with others, interpersonal communication is the foundation for this part.
The Organization Itself we consider the factors that influence individual, team, leader, and
Decision making in organizations isn’t particularly orderly or totally within the control of
We identify and explore the phases of decision making and core models of decision making.
For effective performance, all employees must clearly understand their jobs and the
We identify factors that influence organization design and present some typical designs that
facilitate organizational effectiveness.
Individuals enter organizations to work, earn money, and pursue career goals.
We discuss how employees learn what is expected of them.DDS 52
53. Basically, they do so by exposure to the organization’s culture.
It is the set of shared assumptions and understandings about how things really work—that is,
policies, practices, and norms—that are important to supporting, or perhaps diminishing,
individual, team, or organizational effectiveness.
The management of change involves adapting an organization to the demands of the
environment and modifying the actual behaviours of employees.
We explore the dynamics of organizational change and present several basic strategies for
achieving change to improve organizational effectiveness.
56. MODELS OF ORGANIZATIONAL BEHAVIOUR
Every organization develops a particular model in which behaviour of the people takes place.
The study helps in increasing our predictive ability to understand the behaviour of the people particularly in
the group or an organization, and how their behaviour impacts the performance of an organization.
These models are the most common models in use over the last 100 years.
Models are possible explanations which explain how things work in an organization.
Models are guides to understanding owners and management behaviour in particular.
Top managers can and do influence the whole organization.
However, these models may be in use with in a department or branch or in the whole organization.
No model can explain everything.
Managers choose models based on people, technology, environment and structure. Models can change
over time depending on circumstances.DDS 56
57. AUTOCRATIC MODEL
This model came about during the industrial revolution, in the 1800’s and 1900’s.
It depends on the manager power has to demand “you do this or else” and an employee who
does not follow orders is punished. (one way communication)
The manager has formal, official, authority over employees.
This model assumes that employees have to be directed and pushed into doing the work. In this
model, management does not thinking, employees obey orders and depend on the manager.
Employees are tightly controlled. The manager can hire, fire and “perspire ” them.
Employees may obey managers but employees may not respect management.
Employees receive minimum salary for minimum expected performance.
Employees may have lower skills.
They do not take initiative to work.DDS 57
58. its weakness is that it leads to “micro management”, manager control all details of daily
operations. Managers control time and process, they put their needs above those employees,
they insist on complicated approval processes for even the smallest things and closely monitor
The problem with this model is that it leads to low employee morale, poor decision making (no
one will make a decision because he/she is afraid of the decision being over turned) and high
turnover. As well, employees kept quiet about hating the workplace, they certainly made their
feelings known at home and in the community.
This model can get things done but it has high human costs.
It can be useful in crisis situations, within armies or with short-term employees.
This model was acceptable 100 years ago.
However, today’s understanding of people’s needs as well as changing society values show
better ways of to organize behaviour.DDS 58
59. CUSTODIAL MODEL
In the late 1900’s, employers realized that employees might work better if their basic needs
more satisfied, if they were more secure and had a better quality of work life.
This was called “paternalism” taking care of employees by providing them with benefits to
meet their security needs.
Taking care of employees by providing them with benefits to meet their security needs.
This model depends on economic resources- money for salary/wages and benefits to motivate
The company has to have enough money to cover these costs.
By the 1930’s most employers were offering welfare programs for eg., housing, medical care
and insurance, pensions and paid vacation time off.
60. The problem with this model is that it leads to dependence on the organization by the employee because
of the security offered.
Employees do not want to leave the organization, not so much because they like job or depend on the
benefits that go with it. They cannot afford to quit.
In this model, employees may focus on economic rewards. They may be reasonable content, but may not
be highly motivated just passively cooperative.
Companies that adopt the custodial approach normally have a lower staff turnover.
workers are not dissatisfied with their jobs, they are not motivated to perform better.
They are not allowed to participate in the decision-making process, they cannot decide their rewards and,
therefore, they are happy but are not motivated.
61. SUPPORTIVE MODEL
It depends on leadership, not authority or money.
Through leadership, managers provide a work situation in which employees can develop.
This models assumes that employees want to work and will take responsibility.
Employees are encouraged to be involved in the organization.
Employees are more strongly motivated because their status and recognition needs are better
met than with earlier models.
A supportive manager helps employees solve problems and accomplish their work.
However, some managers may agree with this model but not actually practice at work .
62. This model is followed widely, especially in the west, because it responds to employee drives for complex
It is especially useful in production work places.
Employees in developing countries are aware of management practices around the world and are demanding
more modern approaches.
allow employees to participate in the decision-making process.
Communication is two-way and a healthy work climate is ensured which takes care of the human side of the
It provides supportive climate in the organization where innovative abilities of employees are exploited to their
fullest and they contribute to organizational goals to the best of their abilities.
Managers, thus, focus on human relations and attribute organizational success to satisfaction of human needs.
63. There is synchronization of individual goals with organizational goals
as both, organization and employees work to satisfy each other’s
They have an attitude of care and understanding for each other.
This approach is less successful in the developing nations where the
social and economic need of the working class is different.
64. COLLEGIAL MODEL
This model began about 50 years ago.
Collegial implies people working together collectively.(‘Collegial’ means a body of people
working together for a common purpose)
In this model, management builds a feeling of partnership with employees .
The environment is open and people participate.
The collegial model about team work.
Managers are coaches to help build better teams.
Employees are responsible – they feel obliged to others on the team to produce quality work.
65. Many employees feel satisfied that they are making a worthwhile contribution.
This leads to self actualization and moderate enthusiasm in the way they perform.
This model is especially useful for creative work, like marketing, communication, in thinking environment,
education or planning.
the structure of an organization is developed in a way that there is no boss nor subordinates, but all are
colleagues who have to work as a team.
Each one of the employees has to participate and work in coordination with each other to achieve the
No one is worried about his status or a job title.
Employees need little direction and control from management.
Control is basically through self-discipline by the team members.
66. THE SYSTEM MODEL
This is the most recent model. In this model, employees need more than money, job security
and cooperative teams.
Employees today need trust, an ethical workplace, managers who show care and compassion
and a workplace that has a sense of community.
This model focuses on identifying developing and managing the strength with in employees.
Managers focus on helping employees develop feelings of hope, optimism, self confidence,
empathy, trust worthiness, esteem, courage and resiliency.
In this model managers protect and nurture their employees, to develop a positive workplace
culture which leads to organizational success and committed employees.
Both managers and employees need social intelligence in this model with managers as
67. in this model, managers and employees see the mutual benefits and obligations they share in the complex
system (the organization).
Everyone has psychological ownership for the organization, its products and services. Everyone feels
possessive, responsible and “at home ” in the organization.
Employees can reach a state of self motivation. Their highest order needs are met. They have passion and
commitment to organizational goals, not just their own personal wants and needs.
Models have changed over time.
The choice of model depends on employee needs and the situation.
Any of the models work in some situations.
There is a trend toward the newer models.
The model used depends on the knowledge and skills of managers, the expectations of
employees, the policies and ways of life in the organization and the nature of work
e.g., low skilled, high programmed work, temporary work, or intellectual work.
70. As a Harvard Business Review article argues, “These are scary times for managers”.
The nature of work is changing so rapidly that rigid job structures impede the work to be done now, and that
may drastically change the following year, month, or even week.
Main challenges and opportunities of organizational behaviour are;
1. Improving Peoples’ Skills.
2. Improving Quality and Productivity.
3. Total Quality Management (TQM).
4. Managing Workforce Diversity.
5. Responding to Globalization.
6. Empowering People.
7. Coping with Temporariness.
8. Stimulating Innovation and Change.
9. Emergence of E-Organisation & E-Commerce.
10. Improving Ethical Behaviour.
11. Improving Customer Service.
12. Helping Employees Balance Work-Life Conflicts.
13. Flattening World.
72. MANAGING DIVERSITY: diversity is dealing with a collective mixture of differences and similarities in a
given group. It includes age, background, education, function, and personality. It also includes lifestyles,
sexual orientation, geographic origin, tenure with an organization, management and non-management
values, beliefs and opinions. Diversity has both primary and secondary dimensions.
ETHICAL BEHAVIOUR: every decision and behaviour in organizations will have underlying foundations of
ethics, principles and rules. Business should not try to evolve their own principles to justify what is right
and what is wrong. Employees and employers may be tempted to apply special or weaker ethical rules to
business situations, but the society does not condone such expectations. People who are in business are
bound by the same ethical principles that apply to society.
TECHNOOGY TRANSFORMATION: managers need to upgrade their skills constantly, as many a times
subordinates are ahead of managers in terms of skills. Managers today must possess technical competence
as well in order to gain worker’s respect.
technological changes occur so rapidly in present times, so employees must constantly learn and adapt to
changing technology therefore organizations can remain competitive.
73. CHANGING DEMOGRAPHICS OF WORKFORCE: the major challenges from changing demographics
of workforces related to dual career couples- couples were both partners are actively pursuing
professional careers. Organizations have been accustomed to using jobs making and physical
relocation as important means of developing talents. Men or women, moving up the ranks, need
the experience of the variety of roles in different organizational units. Frequent physical
relocation has therefore been required. The increasing number of dual-career professional limits
individual flexibility in accepting such assignments and may hinder organizational flexibility in
acquiring and developing talent.
CHALLENGED EMPLOYEE EXPECTATIONS: with the changes in work force demographics, employee
expectations and attitudes have also changed. Traditional allurements such as job –security,
attractive remuneration, housing, and the like do not attract, retain or motivate today’s
workforce. Employees today demand empowerment and expect quality of status with the
management. Previous notions on managerial authority ae giving way to employee influence and
involvement along with mechanisms for upward communications.
74. GLOBALISATION: growing internationalization of business has its impact on people
management. The management is required to cope with problems of unfamiliar laws,
languages, practices, competitors, attitude, management styles, work ethics and more.
Personnel functions such as hiring, training, compensation maintaining and like must acquire a