Concept of OB ,definition ,Need
,goal and Importance of OB,
Nature of people, various
Disciplines of OB , Hawthorne
experiment and theory of X and Y
2. Organization Behavior
The Dictionary meaning of the term organization is something
that is organized . It could be a family ,school ,football team or a
corporation or government . An organization is a social unit with
some specific purpose.
The basic element of organizations have remained the same over
the years . Organization have purpose attract people, acquire
and use resources to achieve the objects ,use some form of
structure of divide and co-ordinate activities and rely on people to
lead or manage others.
Behavior may be defined as the way how people act as a
individual and as groups. Behaviour is defined as goal oriented
activities of a person. Generally the behavior of a person is
determined by the goal which he wants to achieve .
For e.g.:- As a student you want to get good division in exam . All
your activities are concerned with study during examination
and it develops a particular type of behaviour at the time.
After completion of education , now your aim is to settle in life .
It is a another goal ,which determined your behaviour so it can
be said that behaviour is a series of activities.
4. Organization Behaviour:-
Is the study and application of knowledge about how people act in an
organization – As individual and as groups .
Organizational behavior is a scientific discipline in which a large
number of tools are used for analysis purpose.
It helps manager to look at the behavior of individuals ,group and
OB is concerned with the study of what people do in an
organiszation and how that behaviour affects the performance of the
Managers of an organization is required to have complete knowledge
and information's about the following facts:-
5. When do two people (Co-workers, or a supervisor –subordinate
When do two or more groups need to coordinate their efforts?
What complexities are involved in inter-personal relations?
Why some employees are more successful than others?
How can we act as a team?
How to handle the stress of workers –superiors and subordinates?
6. How to obtain suggestions from the employees?
Why the culture of one organization differs from other and why
it is changing constantly?
It is essential to develop a perspective understanding about
organizational behavior because it is influenced by the
people in organizations and the way they adopt themselves to
Definition of Organizational Behavior :- OB is a field of study
that investigates the impact that individual, groups, and structure
have on behavior within organizations, for the purpose of applying
such knowledge towards improving an organization effectiveness.
7. OB is the study of what people do in an organization and
how their behavior affects the organizations performance
and because OB is concerned specifically with employment
–related situations, you should not surprised that it
emphasizes behavior as related to concerns such as jobs,
work ,absenteeism employment turnover, productivity
,human performance and management.
Meaning of Organizational Behavior
9. Organization is a coordinated social unit, composed
of two or more people, which functions to achieve a
common goal. Managers are responsible for the
functioning of the organization.
Managers get the work done through people. They
allocate the resources, direct the activities of others, and
take decisions to attain organizational goals
The world has become a global village Now a days
.Understanding Organizational Behavior has become
very important for managers today. Globalization has
presented challenges and opportunities for
Need of Organization Behavior
10. Various changes such as increase in the number of women
employees, corporate downsizing, increase in number of
temporary workers are taking place in the organizations.
Business is shifting to where the technology is. One can say that
Business has become technology driven. There are a lot of
challenges and opportunities for managers to use organizational
Organizational Behavior focuses on how to improve
productivity, reduce absenteeism, turnover and deviant
workplace behavior and increase organizational citizenship
behavior and job satisfaction.
It is concerned with the study of what people do in an
organization and how their behavior affects the organizations
12. Fundamental concepts connected with Organizational
behavior. These are the basic principles that form a strong
foundation for OB. OB has a set of fundamental concepts
The Nature of People
The six basic concepts relevant to the nature of people
15. Law of individual differences-Each person is substantially
different from all others in terms of their personalities,
needs, demographic factors and past experiences and/or
because they are placed in different physical settings, time
periods or social surroundings. This diversity needs to be
recognized and viewed as a valuable asset to organizations
Perception- Perception is the unique way in which each person
sees, organizes and interprets things based on their background of
individual differences. Each person reacts not to an objective
world, but to a world judged in terms of his/her own beliefs,
values and expectations. Selective perceptions may lead to
misinterpretation of single events at work or create a barrier in the
search for new experience. Managers need to recognize the
perceptual differences among the employees and manage them
16. A whole person- People function as total human beings.
People are physical, mental, social and spiritual beings and
the organization actually employs the whole person rather
than certain characteristics. There are spillover effects
between the work life and life outside work and
management’s focus should be in developing not only a better
employee but also a better person in terms of growth and
Motivated behavior- Individual’s behavior are guided by
their needs and the consequences that results from their acts.
In case of needs, people are motivated not by what others
think they ought to have but by what they themselves want.
Motivation of employees is essential to the operation of
organizations and the biggest challenge faced by managers
17. Desire for Involvement-Many employees actively seek
opportunities at work to become involved in relevant
decisions, thereby contributing their talents and ideas to the
organization’s success. Consequently, organizations need to
provide opportunities to the employees for meaningful
Value of the Person- People want to be treated with care,
dignity and respect and increasingly they are demanding such
treatment from their employers. They want to be valued for
their skills and abilities and to be provided with opportunities
to develop themselves.
18. For e.g. :- Automotive manufacturer Hyundai understand how
organizational behavior affects an organizations performance .
The Korean company entered the Indian market by establishing
a fully owned car manufacturing plant in Chennai. They realized
that in India to maintain employee commitment they would
need to understand the how Indian workers respond to Korean
bosses and Korean practices ,and how their employee
management practices may change from those in use of Korea
or in their other partnerships in Canada and turkey . The
Hyundai plant in India set up a works committee to resolve
conflicts and differences at the work place . An equal
representation from both management and production workers
constitute this work committee . The monthly meetings provide
a forum where issues about management styles ,working
conditions and wages are discussed . This initiative led the plan
20. Psychology- It is the science or study of behavior and
includes human as well as animal behavior. Intrapersonal
aspects of organizational behavior such as motivation,
personality, perception attitude learning, training and
development, work stress, emotions, conflict management
owe their study to psychology. Various psychological tests are
conducted in organizations for selection of employees,
measuring personality attributes and ability. Contribution of
psychology has enriched the field of organizational behavior
Sociology- It is the study of group behavior. Sociology has
enriched organizational behavior in the field of leadership,
group dynamics, communication, formal and informal
organizations, group process and decision making.
21. Anthropology- It is the study of human race and its culture.
Organizations have their own culture. Culture influences
human behavior. An employee’s perception about things and
his functioning is influenced by the culture of his organization.
Anthropology is more relevant to organizational behavior today
due to globalization, mergers and acquisitions of various
industries. Today the people have to work in organizations
having work force diversity
Social Psychology- This subject is a blend of the concepts from
psychology and sociology. It focuses on the influence of people
on one another and tries to achieve better human behaviour in the
organization. One of the key areas which it has helped to manage
is ‘Change’ – how to implement it successfully and reduce the
resistance to it.
22. Political Science-Organizations are political entities and it is
political science which helps in understanding behaviors of
individuals within a political environment. Government rules
and regulations play a decisive role in growth of the
23. The goals of organizational behavior.
The four goals of Organizational behavior are:
To describe systematically how people behave under
variety of conditions
To understand why people behave as they do
Predicting future employee behavior
Control at least partially and develop some human activity
24. Importance of Organizational behavior for the managers
Organizational behavior provides a useful set of tools at five
levels of analysis.
It helps managers to look at the behavior of individuals
within an organization.
It aids their understanding of the complexities involved in
interpersonal relations, when two people (two coworkers or a
superior-subordinate pair) interact.
Organizational Behaviour is valuable for examining the
dynamics of relationships within small groups, both formal
teams and informal groups.
When two or more groups need to coordinate their efforts,
managers become interested in the intergroup relations that
Organizations can also be viewed and managed as whole
systems that have inter organizational relationships.
25. Models of Organizational Behavior
Models of Organizational Behavior constitute the belief system that
dominates management’s thought and affects management’s actions
in each organization.
It is very important for the managers to recognize the nature,
significance and effectiveness of their own models as well as the
models of others around them.
Assumptions about Employees- Theory X and Theory Y by Mc
26. THEORY X
The typical person dislikes work and avoid it if possible
The typical person lacks responsibility, has little ambition and
seeks security above all
Most people must be coerced, controlled, and threatened with
punishment to get them to work
With these assumptions the managerial role is to coerce and
27. THEORY Y
Work is as natural as play or rest .People are not inherently
lazy. They have become that way as a result of experience
People will exercise self direction and self control in the
service of the objectives to which they are committed
People have potential. Under proper condition they learn to
accept and seek responsibility. They have imagination,
ingenuity and creativity that can be applied to work
With these assumptions the managerial role is to develop the
potential in employees and help them release that potential
toward common objectives.
28. Emerging Challenges in the Field of OB
1. Workforce Diversity:
Organizations are becoming increasingly cosmopolitan. Organization
specialist must learn to live with diverse behaviors. Managers must learn to
respect diversity. Diversity if managed positively enhances creativity and
innovation in organization as well as ensures better decision–making by
providing different perspectives on problems. When not managed, diversity
leads to increased turnover, heightened inter-personal conflict and more
2. Changed Employee Expectation:
Traditional allurements such as job security, attractive remuneration
housing does not attract, retain and motivate today’s workforce. Employees
demand empowerment and expect equality of status with the management.
Empowerment results in redefining jobs, both from the shop floor as well
as the boardrooms. Expectations of equality break up the traditional
relationship between employer and employee – top to bottom.
30. 3. Globalization:
Growing internationalization of business has its impact on people
management. Managements are required to cope with the problems of
unfamiliar laws, languages, practices, competitors, attitudes and
management styles, work ethics and more. To face this challenge the
management must be flexible and pro-active. Being flexible and pro-active
the management can make significant contribution to the company’s
1. Internationalization makes managers to increase their competencies.
2. Globalization increases the number of managers and professions.
31. 4. Improving Productivity and Quality:
As organizations are exposed to competition, managers are
seriously thinking of improving quality and productivity. In this context
managers are implementing programmes like TQM (Total Quality
Management) and Re-engineering programmes that requires employee
involvement. TQM is a philosophy of management that is inspired by
constant attainment of customer satisfaction of all organizational process.
Re-engineering means radically re-building and redesigning those
processes by which we create value for customers.
5. Changing Demographics Of Workforce:
Major challenges from changing demographics of workforce
relate to dual-career couples. Couples where both partners are actively
pursuing professional careers. The increase in number of dual career
profession limits individual flexibility and may hinder organization
flexibility in acquiring and developing talent. Another change in the
workforce demographics relates to the growing number of employees who