Unit IV
Organizational Behaviour
Organizational Behavior (OB) is the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself. It is the study and application of knowledge about how people as individuals and as groups behave or act in organizations. It revitalizes organizational theory and develops a better conceptualization of organizational life.
According to Fred Luthans, “OB is directly concerned with the understanding, prediction and control of human behavior in organizations.”
According to L. M. Prasad, “Organizational Behaviour can be defined as the study and application of knowledge about human behavior related to other elements of an organization such as structure, technology and social systems”.
According to Davis and Newstram, “Organizational Behaviour is the study and application of knowledge about how people act within organizations”.
To sum up, OB is concerned with the study of how and what people act in organizations and also how their acts affect the performance of the organization. It also applies the knowledge gained about individuals, groups and the effect of structure on human behavior in order to make organizations work more effectively.
Key Takeaways:
- Organizational Behavior (OB) is the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself.
- Organizational Behaviour is the study and application of knowledge about how people act within organizations
The study of organizational behaviour gives insight on how employees behave and perform in the workplace. It helps us develop an understanding of the aspects that can motivate employees, increase their performance, and help organizations establish a strong and trusting relationship with their employees.
Motivation
Every individual is unique based on their experiences and knowledge. Organizational behavior is able to help leaders understand the motivational tools required to facilitate their employees to reach their potential. It is significant for leaders to analyze the organizational structure that can act in their employee's interest. Recent years, large corporations such as Google are shifting to a flatter organizational structure. They enable employees to work independently, encouraging them to share knowledge and gain more control in decision making.
Performance
There are a few factors where behaviours can affect one’s performance. According to a study from IJEMS , those that come to work with a positive attitude are more creative and it also lowers stress levels. In contrast, gossip and rudeness disrupt performance, lower productivity and decrease job satisfaction. Conflicts will arise causing miscommunications that will lead to a decrease in morale.
Office Characteristics
According to an article from Cornell University, there are certain conditions that will affect employees reaction to their work and the setting such as openness and density. The office setting such as openness and density can generate different reactions. The openness of an office can make employees feel a sense of calmness. Density also has an impact on employee's wellness. It is important not to over-densify office space because small workstations can cause collaboration to suffer.
Employees want to belong in successful organizations that value a great company culture and provide opportunities for future growth. Recognizing ways to improve organization behaviours can help resolve underlying issues between employees and promote an appealing workplace environment.
Key Takeaways:
- The study of organizational behaviour gives insight on how employees behave and perform in the workplace.
- Organizational behavior is able to help leaders understand the motivational tools required to facilitate their employees to reach their potential.
Although there are traces to the effect that behavioral approaches had existed in the ancient Egypt as early as in 1700 BC, its actual origin could not be traced beyond doubt. However, behavioral scientists actually tried to chronicle the growth of OB only from the beginning of the 19th century. The hitherto development in behavioral thought can be presented under the following stages for the sake of convenience of analysis: 1) industrial revolution, 2) scientific management, 3) human relations movement and Hawthorne Studies.
These are discussed in brief below:
1) The Industrial revolution (1776) led to increase in production that eventually gave workers increased wages followed by increased job satisfaction and decreasing work hours. In this new environment, Robert Owen, a young Welsh Factory owner, about the year 1800, was one of the first to emphasize the human needs of employees. Though it could hardly be called organization behavior, but it was the beginning of modern organization behavior. That is why he was called the ‘father of personnel administration’ by an early writer Frank Podmore.
In 1835, Andrew Ure, a pioneering behavioral scientist, in his published work on The Philosophy of Manufacturers, recognized human factor, beside mechanical and commercial parts of manufacturing.
In India also, J.N. Tata took a special interest in the welfare of his workers.
2) Then came the era of scientific management in the early 1900s, introduced by Frederick Winslow Taylor. He converted broad generalizations into practical and scientific manners which paved the way for later development of organizational behavior. His work eventually led to improved recognition and productivity for industrial workers.
3) Improving scientific management principles, the human relations movement was developed around 1920. Elton Mayo, an Australian psychologist and organizational theorist, began his research on human behavior in groups and how it affects individuals in the workplace, through the Hawthrone Studies. Unlike Talyor’s scientific management, Mayo’s theory popularized the idea of ‘social person’, meaning organizations should treat people as individuals with individual needs and not as machines.
The period between 1920 and 1950 was witnessed as the human relations movement period which further contributed in the development of organizational behavior studies. Scholars like Elton May, Chester Barnard, Henry Fayol, Mary Parker Follet, and many others contributed to the development and growth of organizational behavior as a discipline. However, Herbert Sinon’s Administrative Behavior introduced a number of important concepts such as decision making into the field of organizational behavior.
In 1960’s and 1970’s the field of organizational behavior started gaining more importance by the introduction of concepts like informal organization, resource dependence, Contingency theory, Institutional theory and organizational ecology.
In the starting of 1980’s, organizational change and organizational culture became another area of study under organizational behavior.
Key Takeaway
- The actual origin of OB could not be traced. The hitherto development in behavioral thought can be studied under three stages for the sake of convenience of analysis: 1) industrial revolution, 2) scientific management, 3) human relations movement and Hawthorne Studies.
Organization Behavior is based on a few fundamental concepts which revolve around the nature of people and organizations.
Such basic concepts are not specific to the field of OB.
In every field of social science or even physical science, has a philosophical foundation of basic concepts that guide its development. There are certain philosophical concepts in organizational behavior also.
The fundamental concepts of organizational behavior are;
- Individual Differences.
- Perception.
- A Whole Person.
- Motivated Behavior.
- The desire for Involvement.
- The value of the Person.
- Human Dignity.
- Organizations are Social System.
- Mutuality of Interest.
- Holistic Concept.
- Individual Differences
Every individual in the world is different from others.
Science supports this idea. Each person is different from all others, probably in a million ways, just as each’s DNA profile is different.
The idea of the individual difference comes originally from psychology. From the day of birth, each person is unique, and personal experiences after birth tend to make people even more different.
Perception
Peoples’ perceptions are also different when they see an object. Two people can differently present the same object. And this is occurring for their experiences.
A person always organizes and interprets what he sees according to his lifetime of experience and accumulated value.
Employees also see work differently for differ in their personalities, needs, demographics factors, past experiences, and social surroundings.
A Whole Person
An employee’s personal life is not detached from his working life.
As an example, A women who attend the office at 9:00 AM is always anxious for her children’s school time (if her kids can participate in the school or not).
As a result, its impact falls on her concentration that means her working life.
For this reason, we cannot separate it. So the manager should treat an employee as a whole person.
Motivated Behavior
An employee has so many needs inside him.
So, they want to fulfill those needs. That’s why; they had to perform well in the organization.
Some motivations are necessary to enrich the quality of work. A path toward increased need fulfillment is the better way to enhances the quality of work.
Desire for Involvement
Every employee is actively seeking opportunities to work to involve in decision-making problems. They hunger for the chance to share what they know and to learn from the experience.
So, the organization should provide them a chance to express their opinions, ideas, and suggestions for the decision-making problem.
A meaningful involvement can bring mutual benefit to both parties.
Value of the Person
An employee wants to be treated separately from another factor of production, (land, capital, labor).
They refuse to accept the old idea that they are just treated as economic tools because they are the best creation of Almighty.
For this, reason, they want to be treated with carrying respect, dignity and other things from their employers and society.
Human Dignity
This concept is very philosophical. Every person needs to be treated with dignity and respect, whether it’s the CEO of the company or labor.
It confirms that people are to be treated differently from other factors of production because they are of a higher order in the universe.
It recognizes human dignity because people are of a higher order; they want to be treated with respect and dignity and should be treated this way.
Organizations are Social System
From sociology, we learn that organizations are social systems; consequently, activities therein are governed by social laws as well as psychological laws. Just as people have psychological needs, they also have social roles and status.
Their behavior is influenced by their group as well as by their drives.
In fact, two types of social systems exist side by side in organizations. One is a formal system, and the other is the informal social system.
Mutuality of Interest
Mutual interest is represented by the statement that organizations need people and people also need organizations.
Organizations have a human purpose. They are formed and maintained by some mutuality of interest among their participants.
People see organizations as a means to help them reach their goals, while at the same time, organizations need people to help achieve organizational objectives.
If mutuality is lacking, it makes no sense to try to assemble a group and develop cooperation, because there is no common base on which to build.
Mutual interest provides a super-ordinate goal that unites the variety of needs that people bring to organizations.
The result is that people are encouraged to attack organizational problems rather than each other.
Holistic Concept
When the fundamental concepts of OB are placed together, a holistic concept emerges.
This concept interprets people-organization relationships regarding the whole person, the whole group, whole organization, and the whole social system.
It takes across the board view of people in organizations to understand as many as possible of the factors that influence their behavior.
Issues are analyzed in terms of the total situation affecting them rather than in terms of an isolated event or problems.
The challenges for the managers are increasing due to the thrust for excellence in productivity of an organization. The need to fight competition due to globalization and new companies has prioritized the study of organizational behavior which can contribute towards the study of human behavior and hence enhance organizational efficiency. However, certain points as regards challenges have been identified:
Improving people’s skills: The skills of the people should always be in the mode of improving if increased organizational performance is expected. Hence the managers need to strive towards continuous skill development of employees in the organization.
Improving quality and productivity: The quality of performance as well as productivity of employees should be given emphasis which will further contribute towards the achievement of organizational goal.
Total Quality Management (TQM): Due to globalization, stiff competition is evident in the market which needs to be tackled at every step of business. Hence TQM should be adopted by organizations which will help in giving a competitive edge to the organization. TQM refers to reducing errors in the managing process, reducing customer complaints by continuously enhancing employee skills.
Managing Workforce Diversity: Globalization has brought forward employees from different parts of the world. This means employees dwell from different cultural background with different social nurturing. The challenge of OB here is to deal with such workforce diversity.
Responding to Globalisation: Globalisation has led to the introduction of new companies from other countries into our home country. More companies with better technology poses challenges to the companies of home countries. To survive, the best option is to upgrade up to the level of foreign companies.
Empowering people: The employees needs to be given autonomy as regards decision making and allow them to bring in creativity and innovation in the thinking process.
Key Takeaways:
- The challenges for the managers are increasing due to the thrust for excellence in productivity of an organization.
Personality
The term ‘personality’ is derived from the Latin word ‘persona’ this means a mask. According to K. Young, “Personality is a patterned body of habits, traits, attitudes and ideas of an individual, as these are organised externally into roles and statuses, and as they relate internally to motivation, goals, and various aspects of selfhood.”
Features of Personality.
- Personality is the sum total of ways in which a person behaves with others and the environment. The following features of personality can be derived:
- Personality includes both structure and dynamics.
- Personality is not a mysterious phenomenon and is unique.
- It refers to persistent qualities of the individual and expresses consistency and regularly.
- It is influenced by social interaction and is defined in terms of behaviour.
Determinants of personality
Personality is the sum total of ways in which a person behaves with others and the environment. The following are the determinants of personality:
Environment:
The influence of physical environment on culture as per geographical environment sometimes determines cultural variability. That the Eskimos have a culture different from that of the Indians is due to the fact that the geographical environment is different.
Heredity:
Some of the similarities in human’s personality are said to be due to his common heredity. Each and every group of human being inherits the same general set of biological needs and capacities. The origination of human characteristic starts right from the union of male and female germ cells into a single cell which is formed at the moment of conception.
Culture:
Culture largely determines the types of personality that predominates in the particular group. Personality is the subjective aspect of culture. Personality and culture are considered as two sides of the same coin.
Particular Experiences:
The particular and unique experiences determine personality. There are two types of experiences one, from continuous association with one’s group, second, sudden and do not recur. The type of people who meet the child daily has a major influence on his personality. The personality of parents affects a child’s personality.
Attitude
Attitude is a functional state of readiness which determines the organism to react in a characteristic way to certain stimuli or stimulus situations. The different methods of finding Employee’s attitude are:
1. Impressionistic Method:
It is non-statistical in that it does not lead to quantitative knowledge. It is based upon the observation of behavior and attitudes. It is the least desirable but because it is a method for measurement of attitude, it is the most widely used.
2. Guided Interview:
It is a purposeful conversation in which the interviewer tries to obtain honest and complete answers to a specific number of questions. It has the advantage of face-to-face contact. This type of interview is used most frequently in industry when considering an applicant for a job. It can be used in handling group complaints of workers. However, it has not been used very often in determining employee attitudes.
3. Unguided Interview (Non-directive):
It is characterized by the free nature of the discussion and by the fact that it is the person interviewed who really defines its limits. There are no specific questions that the interviewer asks and his main concern is to probe and establish the emotional content of the interview.
4. Questionnaire:
It lends to the mass-production techniques of determining employee attitudes. It is similar to guided interview. The fact that eight minutes is reported as the length of the interview means that they went at a very rapid pace.
5. Indirect Method:
It is intended to provide a more free rein of expression. The objective is to explore the “deeper levels rather than to deal only with the manifest verbal content.” This method deliberately attempts to conceal the intent of the measurement and allows the experimenter to observe and measure without producing an effect on the attitude itself. Varieties of techniques have been included within this category: word associations, sentence completions, or picture and story theme completion.
Key Takeaways:
- 1.Personality is a patterned body of habits, traits, attitudes and ideas of an individual, as these are organised externally into roles and statuses, and as they relate internally to motivation, goals, and various aspects of selfhood.
- Attitude is a functional state of readiness which determines the organism to react in a characteristic way to certain stimuli or stimulus situations.
References:
- Organisational Behaviour and Human Resource Management by J. Paulo Davim
- Organisational Behaviour by Stephen K. Robbins
