Unit 2
Organizational Behavior
Contents
Introduction
Definitions of OB
Historical evolution
of OB as a discipline
Contributing
disciplines to the OB
field
Introduction
Organizations need to develop their interpersonal
or people skills for being effective.
Organizational behavior is a field of study that
investigates the impact that individuals, groups,
and structure have on behavior within an
organization, then applies that knowledge to make
organizations work more effectively.
Robbins (2003)
OB concentrates on how to
Improve productivity
Reduce absenteeism and turnover Increase employee citizenship
The field of organizational behavior takes extracts
from the behavioral science disciplines like
psychology, social psychology, and cultural
anthropology.
Some basic ideas included in OB are personality
theory, attitudes and values, motivation and
learning, interpersonal behavior, group dynamics,
leadership
and
teamwork,
organizational
structure and design, decision-making, power,
conflict and negotiation.
Learning Objectives
After this unit, you will be able to
understand---
Historical evolution of OB as a discipline
Definitions of OB
Organizations are defined as social arrangements, constructed by people, who can also change them.
----Buchanan and Huczynski (1997) Organizations are a system of cooperative activities - and
their coordination requires something intangible and personal that is largely a matter of personal relationships.
---- Barnard (1938) OB is concerned with “the study of the structure,
functioning and performance of organizations, and the behavior of groups and individuals within them”.
OB is
about----1. “the study of human behavior, attitudes and performance within an organizational setting;
2. drawing on theory, methods and principles from such
disciplines---3. as psychology, sociology, and cultural anthropology to learn about individual perception, values, learning capabilities, and actions
4. while working with groups and within the total organization; 5. analyzing the external environment’s effect on the organization 6. and its human resources, missions, objectives and strategies.”
Organizational behavior is defines as “The understanding, prediction and
management of human behavior in organizations.”
Contd.
From the above definitions, OB can be seen
as----
A way of thinking
An interdisciplinary field
Having a distinctly humanistic outlook
Performance oriented
Seeing the external environment as critical
Using scientific method
Levels of Analysis
Wood
(1997) suggested that different levels of
analysis can be applied when judging the
importance of an organizational
issue. He proposed
eight
levels---- Individual Team Inter-group Organizational Inter-organizational Societal International GlobalHistorical Evolution of OB as a
Discipline
Many people have contributed to the growth of
OB. Some important contributions
are-A) Early Theorists
1. Adam Smith’s contribution
In the Wealth of Nations published in 1776,
Adam Smith stated that organizations and
society would benefit if they practice division of
labor.
Division of labor increased productivity by
improving workers’ skills and expertise and by
saving time.
2. Work of Charles Babbage
He added some more advantages to the list of
advantages of division of labor proposed by Adam
Smith:
It decreases the time needed to learn a job.
It reduces wastage of material during the learning
process.
Improves skill levels.
It matches people’s skills and physical abilities
B) The Classical Era
Classical era covers the period from
1900 to mid 1930s.
The main contributors during this period
were
Frederick Taylor
Henri Fayol
Max Weber
Mary Parker Follet
Chester Barnard
1.Frederick Taylor
His main focus was on finding one best way of doing a job.
He gave importance on selecting the right people for the right job and train them to do the job in one best way.
His scientific principles of management highlighted the following principles
Shift all responsibility for the organizational work from worker to manager. Use scientific methods to find the most efficient way of doing work.
Select the best person to do the job.
Train the worker to do the work effectively.
Observe the performance of workers to make sure that proper work methods are used and correct results are obtained.
2.Henri Fayol
He was a mining engineer and a manager by profession.
He defined the nature and working patterns of twentieth century
organizations in his book, General and Industrial Management, published in 1916.
In this book 14 principles of management are defined. They
are----1.Division of work – Tasks should be divided among employees.
2.Authority and responsibility – Authority is the right to give
orders. It should match with responsibility.
3.Discipline – It is necessary for proper functioning of business.
4.Unity of command – An employee should receive orders from one
superior only.
5.Unity of direction – Activities related to a single objective should
6. Subordinates of individual interest to general interest – Individual or
group goals must not take priority over business goals.
7. Remuneration of personnel – It should be fair, encourage effort and there
should be no overpayment.
8. Centralization – The extent of centralization of power of issuing orders at
the top depends on size of the organization and the skills of its personnel.
9. Scalar chain (line of authority) – Flow of communication should be up and
down the line of authority.
10. Order – Material and personnel should be at proper place. 11. Equity – People should be treated with kindness and justice.
12. Stability of tenure of personnel – Quick turnover of people should be
avoided because it takes time to develop expertise.
13. Initiative – Employees should be encouraged to take initiatives.
14. Esprit de corps – All efforts should be made to maintain peace and
3.Max Weber
His theory is also known as bureaucratic theory in
management.
He described an ideal kind of organization and called it
bureaucracy.
The features of Weber’s bureaucratic structure are--- Areas of authority should be clearly specified.
Organizations follow principle of hierarchy where subordinates
follow instructions of superiors but have a right to appeal.
Abstract rules guide decisions and actions.
Officials are selected on the basis of technical qualifications. Employment by the organization is a career.
C) The Human Relations
Movement
1. Mary Parker
Follet---The view that people are important to the world of
business was given by Mary Parker Follet. With this the concept of human relations movement started.
Follet believed that organizations should be based on
collectivism (group ethics) rather than individualism.
The manager’s task was to coordinate group efforts. Managers and workers should be like partners.
2. Chester Barnard
Barnard believed that organizations consist of
people who have interacting social relationships.
He believed that organizations can be successful
if they cooperate with various stakeholders such
as employees, customers, investors, suppliers,
etc.
He emphasized on the need for development of
skills and motivation of employees for the success
of organization.
3. Elton Mayo
He is known as the founder of human relations movement. He is also known for his research including the Hawthorne
Studies and his book ‘The Social Problems of an Industrialized Civilization (1933)’.
The research conducted under the Hawthorne Studies showed the importance of groups in affecting the behavior of individuals at work.
He found that work satisfaction depended on the social relationship of the workgroup.
Physical conditions and financial incentives have very low motivational value.
4. Dale Carnegie
His book How to Win Friends and Influence
People is used by management experts even
today.
He believed that to succeed, an organization
should win the cooperation of its people.
He
advised---Make others feel important by appreciating their
efforts.
Try to make a good impression.
Win people by being sympathetic and never telling
5. Abraham Maslow
He proposed the need hierarchy theory (physiological,
safety, social, esteem and self actualization needs).
Each step in the hierarchy must be satisfied before
moving on to the next step.
After a need is satisfied, it does not motivate an
individual.
The final goal of human existence is self actualization.
Managers who accepted this theory tried to change
organization and management practices to reduce
hurdles that prevent employees from reaching self
actualization.
Maslow’s
Maslow’s
Hierarchy
Hierarchy
of Needs
of Needs
SelfSelfEsteem Esteem Social Social Safety Safety Physiological Physiological
Be where you want to be
Need for respect from others
Need to be in a group, be loved
Need for stability and consistency
6. Douglas McGregor
He gave two statements about human nature – Theory X and
Theory Y.
Theory X put forward a negative view of people stating that
this category has
Little ambition Dislike work
Want to avoid responsibility Need close supervision at work
Theory Y put forward a positive view of people stating that
this category has
Self direction
Take responsibility
Consider work as a natural activity
McGregor believed that managers should give freedom to
D) Behavioral Science
Theorists
1. B.F.
Skinner-
His research on classical and operant
conditioning
and
behavior
modification
affected the design of organization’s training
programs and reward systems.
According to Skinner, behavior depends on
results.
He stated that people show a desired behavior
only if they are rewarded for it.
A behavior is not repeated if an individual is
2.David McClelland
His work has helped organizations to match
people with jobs and in redesigning jobs for
high achievers to motivate them.
For example, people who have received
achievement training in India, work for longer
hours, initiate more new business ventures,
make greater investments in productive assets
as compared to people who did not receive
such training.
3.Fred Fiedler
His work in the field of leadership has a big
contribution to the growth of OB as a discipline.
He highlighted the situational aspects of
leadership and tried to develop a complete
theory of leadership behavior.
4.Frederick Herzberg
He tried to find answer to the
question: What individuals want from their jobs?
By his study, he reached a
conclusion that people preferred jobs that provided recognition, achievement, responsibility and growth.
Only hygiene factors were not
sufficient to motivate people at workplace.
This work is important in OB
because it helped in enriching jobs and the quality of work life in modern organizations.
Motivational Factors Hygiene Factors
•Company policies
• Quality of supervision • Relations with others • Personal life • Rate of pay • Job security • Working conditions • Achievement • Career advancement • Personal growth • Job interest • Recognition • Responsibility
E) OB in Present Times
Only a single theory cannot improve
organizational
functioning
and
effectiveness.
Therefore a contingency approach is
suggested.
Today, the focus is on understanding
the situational factors and how they
affect a behavior pattern of individuals.
Contributing Disciplines to the
OB Field
Organizational behavior is a behavioral science that
takes contributions from various behavioral
disciplines
like----Psychology
Sociology
Social psychology
Anthropology
Political science
Psychology
It is the science that tries to measure, explain and change the
behavior of humans and other animals.
Early industrial or organizational psychologists were concerned
with problems of tiredness, boredom and other factors that affect performance.
But now, they are concerned with learning, perception,
personality, training, leadership effectiveness, etc.
Sociology
It is the study of the social system in which the individual lives. It studies people with respect to their colleagues.
Sociologists make an important contribution to OB through their
Social Psychology
It mixes the concepts of psychology and sociology. It focuses on influence of people on one another.
Anthropology
It is the study of societies to learn about human beings and their activities.
Anthropologists work on culture and environments.
They help in understanding differences in fundamental values, attitudes and behavior of people in different countries and different organizations.
Political Science
It studies behavior of individuals and groups within a political environment.
