UNIT- 1

ORGANIZATION BEHAVIOUR

Q1)  What is Organization Behavior? State its features.

A1)  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 Behavior 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 behavior 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.

Features of Organizational Behaviour

Q2)  Discuss the role of managers in an organization.

A2)  There are four key roles of management in today’s business world, namely: planning, organizing, leading, and controlling.

We should note from this list of key management roles that a manager is a proactive position responsible for achieving organizational goals. This needs to be distinguished from a non-manager worker who is more likely to take direction and advice on their role. While the manager is responsible for implementing key parts of the organization’s plan, they also need to take responsibility for planning and organizing.

Planning:

Planning means working out how to achieve the goals of the organization. All organizations will have some form of goals – from top level growth and profit objectives, down to productivity targets for staff, and a lot in between.

The planning function is working out the tasks that need to be implemented in order for the organization to achieve these goals – planning is undertaken prior to the work commencing.

Depending upon the organization and its process, these plans can be quite top level or could be very detailed – this will vary by type of organization and its approach to planning.

Organization function:

The organization function is working out the resources and processes required to execute the defined plans. The level of organization will look at staff numbers, staff roles, job designs, teams, rewards, and so on – from a human resources perspective, but also needs to look at the equipment, tools, facilities, and other resources required to deliver on the plan.

Leading staff:

Much of the success of an organization will depend upon the quality and motivation of the staff. Therefore, this leading function relates to motivation, incentives, resolving conflicts, training and development, problem-solving, and so on – all designed to leverage the skills and abilities and potential of the organization’s workforce.

Controlling:

The fourth key management function is controlling. Controlling refers to monitoring performance and ensuring that is on track to achieve the firm’s goals. Often this involves various measures and metrics that track sales, profits, productivity, outputs, and so on – often on a very detailed basis. The intent here is to ensure that the organization is performing a day-to-day basis as planned.

These four management functions are interlinked. The process starts with planning, and then requires organization of resources, leading and motivating those resources, controlling and monitoring performance – which then leads back to improved planning, organization and leadership.

Q3) Discuss the direct and indirect environmental forces affecting organization behavior.

A3)  Environmental context for OB is markedly different from past. Management is forced to rethink approaches to operations and human resources because of: Information technology, globalization, diversity and ethics. Organization has to respond to its environment- both external and internal. Let us study the environmental forces that impact organizational behavior:

Information Technology:

Intense competition is forcing the organization to become more efficient and effective. One way to increase efficiency and effectiveness is the use of information technology. Information technology has helped in regulating OB up to a great extent. It provides more effective ways of accessing information from multiple sources, including use of external information on databases and on the internet. Newer types of IT such as electronic mail and groupware (application software to help people in achieving their common goals) are creating significant changes in the way that information flows around groups and their customers and suppliers. As the industry becomes more global in its procurement, manufacturing and marketing operations, it requires greater use of information technology to reduce time and space barriers. With constant reorganization as well as increased mergers and acquisitions, top management recognizes the need for flexibility through compatible IT such as BPR.

Globalization:

Globalization is the free movement of goods, services and people across the world in a seamless and integrated manner. Globalization means to increase their base of operations, expand their workforce with minimal investments and provide new services to a broad range of consumers. Globalization has created a large shift in organizational behavior as increasing diversity has brought together people of different backgrounds with different values, cultures and beliefs working together for common objective. It affects managers in two ways- in a foreign country and in one’s own country.

Diversity, Ethics, Culture:

Diversity and ethics have a drastic impact on the study and application of management and OB. As organizations have become more global, their work force has become culturally and ethically diverse. Diversity in the workplace means that a company’s workforce includes people of varying gender, age, religion, race, ethnicity, cultural background, nationality, education, abilities etc. Diversity must be recognized and nurtured as the organization’s greatest asset and the ability to attract and retain diverse talent must be seen as a critical competitive advantage as it plays a central role in today’s environmental context. One of the most important and broad based challenges currently facing organizations is adapting people who are different. Problems with diversified workforce include resistance to change, fears of discrimination, unsupportive and hostile work environment etc. Diversity, if positively managed, can increase creativity and innovation in the organization.

Ethics involve moral principles that govern a person’s behavior or the conducting of an activity. In order to prohibit ethical issues such as illegal practices, looting, frauds etc. in an organization, implementation of ethical conducts are essential. A number of cultural (family, friends, religion etc.), organizational (policies, ethical codes, reward and punishment systems etc.) and external forces (political, legal, economic and international developments) help determine ethical behavior.

Reward System:

The organization’s reward system also affects the OB. How the company appreciates hard working and efficient employees, how it motivates them positively, how they compensate employees determine the OB.

Q4)  Discuss the impact of various fields of OB.

A4)  Organisational behaviour is an interdisciplinary approach as it has borrowed concepts, theories, models and practices of physical sciences as well as social sciences. The main features of organisational behaviour are primarily based on behavioural sciences. The organisational behaviour is studied in relation to psychology, sociology, political science, anthropology, economics, science, technology and environmental sciences. OB is, in fact, called an applied behavioural science.

The relationship of OB with other fields of study is depicted below:

1) Psychology: The term ‘psychology’ is derived from the Greek World ‘Psyche’ which means ‘soul’ or ‘spirit’. Organisational behaviour studies human behaviour which is concerned mainly with the psychology of the people. Psychology, especially, industrial or organisational psychology is the greatest contributor to the field of organisational behaviour. Psychologists study behaviour and industrial or organisational psychologists deal specifically with the behaviour of people in organisational settings.

Psychology as a science, measures, explains and suggests the appropriate human behaviour. Individual behaviour is governed by perception, learning and personality. Industrial psychology understands people’s behaviour at work, particularly under different working conditions, stress, conflicts and other related behaviour of employees. Job satisfaction, performance appraisals and reward systems are measured and directed with the use of psychological theories and models.

Group behaviour in the organisations is studied, researched and moulded with the use of theories of Social Psychology. The communication system in the organisation, attitudes of employees, their needs etc. as a subject of social psychology have a great influence on behaviour. Thus, many of the concepts which interest psychologists e.g. learning, motivation etc. are also central to the students of organisational behaviour. We can conclude that the contribution of psychology in the field of organisational behaviour is quite significant.

2) Sociology: Sociology also has a major impact on the study of organisational behaviour. Sociology makes use of scientific methods in accumulating knowledge about the social behaviour of the groups. Sociologists study social systems such as a family, an occupational class, a mob or an organisation. It specifically studies, social groups, social behaviour, society, customs, institutions, social classes, status, social mobility, prestige etc.

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. Socialisation is accepted for moulding the behaviour of people where the capacities of individuals to learn and respond to social systems, values, norms and social roles are accelerated and appreciated. The attitudes and behavioural patterns of individuals and groups are greatly influenced by socialisation.

3) Anthropology: 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. ‘Anthropo’ is a Greek word which means ‘man’ and ‘logy’ means ‘Science’. Aristotle defined anthropology as a science of man’s self-understanding. It particularly studies civilization, forms of cultures and their impact on individuals and groups, biological features of man and evolutionary pattern, speech and relationship among languages.

Anthropology contributes in understanding the cultural effects on organisational behaviour, effects of value systems, norms, sentiments, cohesion and interaction. Socialization involves spreading of values and missions of organisation among employees. Anthropology influences the employees’ behaviour through motivation, interaction, goal setting, decision making, coordinating and controlling.

4) 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.

Political parties and Government directly intervene in many activities of the organisation. Specific principles of political science are observed in organisational behaviour for delegation of authority and responsibility, conflict resolution and stress management.

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 analysed 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.

5) Economics: Economists study the production, distribution and consumption of goods and services. Students of organisational behaviour share the economist’s interest in such areas as labour market dynamics, productivity, human resource planning and forecasting, and cost benefit analysis.

The economic conditions of a country have long lasting impact on organizational behavior. If psychological and economic expectations of employee are met, they are satisfied and become high performers. Economic systems include financial, commercial and industrial activities which have greater influences on the behaviour of the people. The consumption pattern in society monitors the behaviour of employees. Consumption oriented society witnesses a different employee behaviour from that of a production-oriented society.

6) Science: Science is systematized knowledge. The scientific methods attempt to produce information that is objective in the sense that it is certifiable and independent of a person’s opinions or preferences. Scientific method is the backbone of organisational behaviour. Organisational behaviour is based on the systematized study of facts, behaviour, their relationships and predictions.

New scientific methods viz. observation of facts and behaviour, explanation of facts and relationships and coming to conclusion thereon have become important bases of the study of organisational behaviour. The cause and effect relationship is also established in organisational behaviour like that of science. The verification of the relationship and its quantification has added to the importance of organisational behaviour.

It becomes relatively easy to predict and mould the people at work. A researcher, in the field of OB investigates new facts, tests theories, hypothesis and models. Personal bias, superfluous conclusions and whimsical approaches are avoided in the study. A systematized form of inquiry is used for the study of various problems.

7) Technology: The level of technological development affects the behaviour of the employees. Modern age is the age of computerization. It has come within the framework of the model of organisational behaviour. The study of technological development is becoming essential for understanding the organisational behaviour, because people are influenced by the technological development. Human behaviour relations and environments develop as a result of technological innovations.

Technology changes consumer behaviour, production activities, distribution and storage activities. To cope up with the technological development people have to become educated and/or technically skilled. They should have to be responsibility conscious and development oriented. Unskilled or irresponsible will have no place in the modern innovative age. Thus, technological development leads to effective work behaviour, improved organisational culture and helpful work environment.

8) Engineering: Engineering also influences the study of organisational behaviour. Some topics are common to engineering as well as organisational behaviour e.g. work measurement, productivity measurement, work flow analysis, work design, job design and labour relations. In fact, organisational behaviour is dependent on engineering for these technical jobs.

9) Medicine: Nowadays, medicine has also come in connection with the study of human behaviour at work. Stress is becoming a very common problem in the organisations as well as in the people working in the organisations. Research shows that controlling the causes and consequences of stress in and out of organisational settings, is important for the well-being of the individual as well as the organisations. Medicine helps in the control of stress as well as stress related problems.

Thus, it can be concluded that organisational behaviour has an inter­disciplinary focus. It draws from a variety of other fields and attempts to describe behaviour as opposed to prescribing how behaviour can be changed in consistent and predictable ways.