This document provides an overview of organizational behavior. It defines organizational behavior as the study of human behavior in organizational settings and the interface between human behavior and the organization itself. It outlines several key topics in organizational behavior including importance, factors affecting behavior, objectives, levels of analysis, models of organizational behavior, challenges and opportunities, and limitations. The document discusses how organizational behavior can help understand and motivate employees, improve relations, predict and control human behavior, and utilize human resources effectively. It also examines factors like people, structure, technology, and environment that influence organizational behavior.

1. Organizational behavior
Out lines:-
 Introduction
 Definition of OB.
 importance of Organizational Behavior (OB)
 Factors affecting organizational behavior
 Objectives of Organizational Behavior
 Levels of OB analysis.
 Models of organizational behavior
 Challenges and opportunities of organizational behavior
 Limitations of OB
Definition of Organizational Behavior (OB) :-
organizational behavior is the: "study of human behavior in organizational settings, the
interface between human behavior and the organization, and the organization itself".
importance of Organizational Behavior (OB) in any type of organizations is as
follows:
1. Organizational Behavior helps in understanding Organization and Employees in a
better way:
Studying Organizational Behavior helps to understand organization and people in a better
way. When we can understand organization and employees,
it helps to develop friendly relationship between organization and employees creating a
proper working environment in an organization.
Similarly, studying Organizational Behavior topics helps to find out the factor causing the
behavior,
and helps to apply different strategies to control the critical behavior which harms the
organization.
2. OB helps in motivating employees:
Importance of Organizational behavior cannot be neglected because studying
Organizational Behavior helps managers to motivate the employees bringing a good
organizational performance.

2. As every individual differs from each other, therefore Organizational Behavior helps
managers to apply appropriate motivational tools and techniques in accordance with the
nature of individual employees.
This helps achieving organizational goal properly.
3. Organizational Behavior helps in improving Industrial / Labor relations:
Studying Organizational Behavior helps to improve industrial/labor relations.
Organizational Behavior Management helps in understanding the root-cause of the
problem, predict its future course of action and control its negative consequences.
As, managers are aware about the positive and negative consequences of the behavior, it
enables managers to maintain friendly relations with their employees which creates peace
and harmony in the organization.
4. Organizational Behavior helps in predicting and controlling Human Behavior:
Studying Organizational Behavior helps to predict and control human behavior.
It is the one of the most important reason for studying Organizational Behavior.
Knowledge of Organizational Behavior is very much important for the management
students who are going to have a career as a successful manager.
If all the Organizational Behavior theories is studied properly then it helps to bring
organizational effectiveness.
5. Organizational Behavior helps in effective utilization of Human Resources:
Studying Organizational Behavior helps in effective utilization of Human Resources.
Knowledge of Organizational Behavior helps managers to manage people effectively in the
organization.
Likewise, it enables managers to inspire and motivate employees toward higher productivity
and better results as the manager is able to analyze and understand nature and behavior of
his employees.

3. Factors affecting organizational behavior
People:
People make up the internal social system of the organization.
That system consists of individuals and groups and groups may be:-
large and small,
formal and informal.
Groups are dynamic.
Group form, change and disband.
Since the organization is a combination of a group of people, managers must handle the
people in the right direction.
This is very challenging to guide people or employees who have different educational
backgrounds, talent, and perspectives.
So managers must understand predict and control the people.
They build up relationship among the employees and motivate themselves.
Structure:-
The structure defines the formal relationship and use of people in the organization.
There are managers and employees, accounts assemblers in order to accomplish a
different kind of activities.

4. They are related in a structural way so that their work can be effectively coordinated.
Because there is no organization can be successful without proper coordination.
Many organizational structures have become flatter.
This downsizing and restructuring have occurred as a result of the pressure to lower costs
while remaining competitive.
Other structures have grown more complex as a result of mergers, acquisitions, and new
ventures.
Several organizations have experimented with hiring contingent workforces (temporary,
part-time, or contract employees).
Finally, many firms have moved from a traditional structure to a team-based one.
Technology:-
Technology provides the resources with which people work and affects the tasks that they
perform.
They cannot accomplish work with their bare hands.
The technology used has a significant influence on working relationships.
The great benefit of technology is that it allows people to do more and better work, but it
also restricts people in various ways’ It has cost as well as benefits.
Examples of the impact of technology include the increasing use of robots and automated
control systems in an assembly line.
The dramatic shift from a manufacturing to a service economy, the impressive advances in
computer hardware and software capabilities, the rapid move toward the widespread use of
the information highway (internet).
And the need to respond to societal demands for improved quality of goods and services at
acceptable prices.
If any person has a lack of technological knowledge he/she cannot work. Moreover,
technology decrease per unit cost and improve the quality of the products and services.
Environment:-
All organizations operate within an internal and an external environment.
A single organization does not exist alone.

5. An organization is a part of a lager system that contains many other elements, such as
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.
There is a direct impact of several trade unions of organizations.
So all the elements of environments influence the attitude and provide competition.
It must be considered in the study of human behavior in an organization.
Objectives of Organizational Behavior:-
The organizations in which people work have an effect on their thoughts, feelings, and
actions.
These thoughts, feelings, and actions, in turn, affect the organization itself.
Organizational behavior studies the mechanisms governing these interactions, seeking to
identify and foster behaviors conducive to the survival and effectiveness of the organization.
1. Job Satisfaction.
2. Finding the Right People.
3. Organizational Culture.
4. Leadership and Conflict Resolution.
5. Understanding the Employees Better.
6. Understand how to Develop Good Leaders.
7. Develop a Good Team.
8. Higher Productivity.
Levels of OB analysis:-
INDIVIDUAL LEVEL OF ANALYSIS
At the individual level of analysis, organizational behavior involves the study of learning,
perception, creativity, motivation, personality, turnover, task
performance, cooperative behavior, deviant behavior, ethics, and cognition.
At this level of analysis, organizational behavior draws heavily upon psychology,
engineering, and medicine.
GROUP LEVEL OF ANALYSIS
At the group level of analysis, organizational behavior involves the study of group
dynamics, intra- and intergroup conflict and cohesion, leadership, power, norms,
interpersonal communication, networks, and roles.

6. At this level of analysis, organizational behavior draws upon the sociological and socio-
psychological sciences.
ORGANIZATION LEVEL OF ANALYSIS
At the organization level of analysis, organizational behavior involves the study of topics
such as organizational culture, organizational structure, cultural diversity, inter-
organizational cooperation and conflict, change, technology, and external environmental
forces.
At this level of analysis, organizational behavior draws upon anthropology and political
science.
Models of organizational behavior
Autocratic Model of Organizational Behavior
The autocratic model of organizational behavior puts the boss in charge and the
subordinates in a position to obey commands or be fired.
It's black and white, regarding who is in charge and quickly establishes consequence for
insubordination or lack of performance.
This environment uses a paycheck as the reward system rarely implementing any other
incentive programs.
Loyalty, if it exists, is generally to the boss and not the company.
This model can create a fearful workforce, unsure if any mistake could lead to disciplinary
action.
Custodial Model of Organizational Behavior
Custodial models seek to make employees feel as if the boss is caring for their personal
needs.
This is often done through benefits packages such as healthcare, retirement plans and
other incentives.
An executive visiting various territory offices could get a company car as an incentive.
The custodial model looks to retain quality people by providing incentives that are
meaningful to the employee.
Loyalty is to the company and not individual company leaders.
Collegial Model of Organizational Behavior
The collegial model works to develop a structure in which managers are more like coaches
and employees are team members.
Power is shared to some degree.
The coach leads through inspiration.

7. In this model, the loyalty is to the bigger goal, and team responsibility rather than to an
individual.
Employees feel invested in the success of the company and take pride in the successful
execution of goals.
Supportive Model of Organizational Behavior
The supportive model seeks to understand what motivates employees and focuses on
those things to motivate and inspire.
When employees are given opportunities to improve themselves, they often take personal
initiative to perform better at their job.
Managers support employees as they work toward established personal goals such as
promotion or acquisition of new skills.
In this model, a manager would ask employees for professional goals and would work with
them to establish an action plan to succeed with them.
System Model of Organizational Behavior
The system model is really the foundation of positive corporate cultures.
When people think about why LinkedIn is a great place to work,
for example, it is because of the incentives, work schedule flexibility and creative
encouragement that leadership provides.
It is nurturing yet challenging, and so efficiency and productivity increase in a happier work
environment that's loyal to the company and excited to share its vision.
Small business owners don't need to try to compete with what LinkedIn does, but should
develop strategies within their resources to build a positive corporate culture.
Challenges and opportunities of organizational behavior :
are massive and rapidly changing for improving productivity and meeting business
goals.
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-Organization & E-Commerce.
10.Improving Ethical Behavior.
11.Improving Customer Service.
12.Helping Employees Balance Work-Life Conflicts.
13.Flattening World.

8. Major limitations of OB are;
1. Behavioral Bias:
Behavioral bias can be so misapplied in a way that it can be harmful to employees
as well as the organization as a whole.
Some individuals, despite having good intentions, so overwhelm others with the care
that the recipients of such care become dependent and unproductive.
They find excuses for failure rather than take responsibility for progress.
They do not possess a high degree of self-respect and self-discipline.
2. The Law of Diminishing Returns:
Overemphasis on an organizational behavior, the practice may produce negative
results, as indicated by the law of diminishing returns.
It places an overemphasis on an OB practice may produce negative results.
It is a limiting factor in organizational behavior in the same way that it is in
economics.
In economics, the law of diminishing return refers to a declining amount of extra
outputs when more of a desirable input is added to an economic situation.
3. Unethical Manipulation of People:
significant concern about organizational behavior is that its knowledge and
techniques can be used to manipulate people unethically as well as to help them
develop their potential.
People who lack respect for the basic dignity of the human being could learn
organizational behavior ideas and use them for selfish ends.
They could use what they know about motivation or communication in the
manipulation of people without regard for human welfare.
People who lack ethical values could use people in unethical ways.