Module one

•What is Organisation Behaviour?

• Some Definitions
•Why study organisational behaviour?
•Elements of Organisational behaviour
•Contributing factors
•Evolution of OB
•Role of a Manager
•Models of Organisational Behaviour
•Learning Organisations
 The study and application of how employees
behave within organizations
 Known as people skills
 Field of study that investigates the impact
that individuals, groups and structure have on
behavior within organizations for the purpose
of applying such knowledge toward
improving an organization.
 Some definitions of OB
1. O.B. is a field of study that investigates the impact that individuals ,
groups and structures have on behaviour within organizations for
the purpose of applying such knowledge towards improving an
organization’s effectiveness.
2. O.B. can be defined as the systematic study of the actions and
reactions of individuals, groups and sub-systems.
3. O.B. is the study and understanding of individual and group
behaviour, patterns of structure in order to to help improve
organizational performance and effectiveness.
4. O.B. is one of the most complex and perhaps least understood
academic elements of modern general management, but since it
concerns the behaviour of people within organizations it is also one
of the most central- its concern with individual and group patterns
of behaviour makes it an essential element in dealing with the
complex behavioural issues thrown up in the modern business
world.
5. O.B. is an inter-disciplinary behaviour science studying phenomena
 Definition: The study of human behavior,
attitudes, and performance in organizations.
 Value of OB: Helps people attain the
competencies needed to become effective
employees, team leaders/members, or
managers
 Competency = an interrelated set of abilities,
behaviors, attitudes, and knowledge needed
by an individual to be effective in most
professional and managerial positions
 Chart the evolution of management thought
on the nature of the organization

 Understanding of the organizational factors

that influence work

 Understanding of how the work environment

shapes organizational performance
 consideration of the interaction among the formal structure
(organisational context in which the process of management
takes place)
 the tasks to be undertaken
 the technology employed and the methods of carrying out
work
 the behaviour of people
 the process of management
 the external environment
Interrelated dimensions influencing behaviour:
 The Individual - working environment should satisfy
individual needs as well as attainment of organisational goals.
 The Group - formal and informal. Understanding of groups
complements a knowledge of individual behaviour.
 The Organisation - impact of organisation structure and
design, and patterns of management, on behaviour.
 The Environment - technological and scientific development,
economic activity, governmental actions.
e.g., Selection Systems Organizational Level

e.g., Groupthink Group Level

Individual
e.g., Personality Level
 Understanding
organizational behavior
requires studying

Individuals in Organizations

Group and Team Processes

Organizational Processes
 Organisations as Open systems
 Note that organizations are “open systems,” such that their
long term effectiveness is determined by their ability to
anticipate, manage, and respond to changes in their
environment, with such changes resulting from external forces
and/or stakeholders
 External forces include the labor force, the natural
environment, the economy, and different cultures, while
stakeholders include shareholders, customers, competitors,
suppliers, creditors, governmental agencies and their
regulations
◦ Note the impact of these environmental influences on individual,
interpersonal, team, and organizational processes; organizations that do
not effectively adapt to environmental change will fail
 Consciously coordinated social unit
 Composed of two or more people
 Functions on a continuous basis to achieve
a common goal
 Characterized by formal roles that define
the behavior of its members
 Basic Definitions related to OB

 Organization: An organization has four essential

elements
(a) Group of people
(b) Interacting with each other
(c )In a structured manner
(d) Towards a common objective
 Management: Implies getting things done through
and with people
 Manager: He is the dynamic, life-giving element in
every organization. And it is the quality and
performance of its managers which is the only
effective advantage an enterprise in a competitive
 What is organisational Behaviour?
To provide an understanding of what goes on at the
workplace. Four aspects need to be explained viz.
Definition, goals, forces and O. B. ’s major
characteristics
s O.B. is the systematic study and careful application of
knowledge about how people- as individuals and as
members of groups –act within organizations. It strives to
identify ways in which people can act more effectively.
O.B. provides managers with the tools to:
(a) to understand the behavior of individuals
(b) to understand the complexities of inter-personal relations
(c )to examine the dynamics of relationships within small
groups –both formal teams and informal groups
(d) organizations can be viewed as whole systems that have
3 GOALS:
•Most sciences share four goals-to describe, understand, predict and
control some phenomena.
•The field of OB seeks to replace intuitive explanations with systematic study
O.B. has the following goals,
1.Describe, systematically, how people behave under a variety of
circumstances
2.Understand why people behave as they do.
3.Predicting future employee behavior.
4.Control at least partially, and develop some human activity at work

• Managers can utilize the tool of O.B.to influence human behavior , skill
development, team effort and productivity.

4 FORCES:
• There are a wide array of issues and trends that affect the nature of
organizations today.
•They can be classified under four areas
PEOPLE, STRUCTURE, TECHNOLOGY and the ENVIRONMENT
 Understand
organizational
events

Organizational
Behaviour
Research
Influence Predict
organizational organizational
events events
 ORGANIZATIONAL BEHAVIOUR
Key forces affecting Organizational Behavior

People
•Individuals
•Groups

Environment
Structure
•Government
•Jobs Organizational Behavior
•Competition
•Relationships
•Societal pressure

Technology
•Machinery
•Computer hardware ,software
 The Elements of Organizational Behavior
•The organization's base rests on management's
philosophy, values, vision and goals.
•This in turn drives the organizational culture which is
composed of the formal organization, informal
organization, and the social environment.
• The culture determines the type of leadership,
communication, and group dynamics within the
organization.
•The workers perceive this as the quality of work life
which directs their degree of motivation.
•The final outcome are performance, individual
satisfaction, and personal growth and development.
•All these elements combine to build the model or
framework that the organization operates from.
 Coordination
 Common Goals
 Division of labor
 Integration
• Psychology: The science or study of
individual human behaviour
• Sociology: The study of group human
behaviour
• Social Psychology: Studies influences of
people on one another
• Anthropology: Study of the human race,
and culture
• Political Science :Behavior of individuals
in political environment.
 Psychology seeks to Sociology studies
measure,explain, people in relation to their
and change fellow human beings
behavior

Social psychology
focuses on the
influence of people
on one another

Political science is the

Anthropology is the
study of the
study of societies
behavior of individuals
to learn about human
and groups within
beings and their activities
a political environment
 Organizational Behavior
1970’s

Human Relations

Hawthorne Studies
1940’s
Classical Organization Theory

Scientific Management

1900’s
 Who is a manager ?
Three elements stand out in a manager-
• Competence
• Integrity
• Performance
Who is a manager? The CEO or the middle manager or
the supervisor?
• A manager’s decision-making, action and behavior
are all geared towards ‘Economic Performance’.
• The objective of a business enterprise could be
Survival, Profit and /or Growth ?
• Peter Drucker feels otherwise-’creating a customer’.
 Managing Managers
 Managing Worker and Work
 Managing a Business
 Managing Time

 A Manager has to manage Resources- 5 Ms- Money, Materials,

Machines, Methods and Man. One of these resources is different
from the others. Which one and why?
What about Time as a resource?
 A manager also performs the following functions:
 Planning, Organizing. Staffing, Directing and Controlling or
 Leading, Planning, Organizing and Controlling
 Planning –determines what results the organization will achieve
 Organizing- specifies how it will achieve the results
 Controlling –determines whether the results will be achieved
 Leading- through planning, organizing and controlling managers
 Roles and Responsibilities of a manager
• The three vital determinants of team work are the leader”
subordinates and the environment.
• These factors are interdependent. It is the leader’s
responsibility to make the environment conducive to work.
• He studies the employees individually and insists interest
in them. By encouraging the inquisitive employees and by
prohibiting insidious elements, he creates hygienic
environment.
• He inculcates the sense of collectivism in employees to
work as a team. The resultant output will then be
efficiency.
• A person who manages, conducts, trains, manipulates,
directs, deals, supervises, organizes and controls
resources, expenditures, an organization, an institution, a
team, a household, etc.
What are the roles and responsibilities of managerial positions?

• Supervise and manage the overall performance of staff in

his department.
• Analyzing, reporting, giving recommendations and
developing strategies on how to improve quality and
quantity.
• Achieve business and organization goals, visions and
objectives.
•  Involved in employee selection, career development,
succession planning and periodic training.
•  Working out compensations and rewards. 
• Responsible for the growth and increase in the
organizations' finances and earnings.
•  Identifying problems, creating choices and providing
alternatives courses of actions.
• Interpersonal relationship skill.
• Communication skill.
• A good planner.
• Decision Maker.
• Leadership skill.
• Appraiser.
• Provide satisfaction
• Become an exemplary role model.
• A good Listener
• A representative of subordinates
• An appropriate counselor
• Uses power properly
• Manages time well
• Strives for effectiveness
• Manages and leads
•  Maintains relationships
• Source of influence
• Sanctions
Knowledge x Skill = Ability

Attitude x Situation = Motivation

Ability x Motivation =Potential Performance

Human Performance x Resources =

Organizational Performance

Thusa manager’s knowledge of human

relations and OB can help improve
 Models of organizational behaviour
There are four major models or frameworks
that organizations operate out of:

 Autocratic - The basis of this model is

power with a managerial orientation of
authority. The employees in turn are oriented
towards obedience and dependence on the
boss. The employee need that is met is
subsistence. The performance result is
minimal.
 Custodial - The basis of this model is economic
resources with a managerial orientation of money.
The employees in turn are oriented towards security
and benefits and dependence on the organization.
The employee need that is met is security. The
performance result is passive cooperation.

 Supportive - The basis of this model is leadership

with a managerial orientation of support. The
employees in turn are oriented towards job
performance and participation. The employee need
that is met is status and recognition. The
performance result is awakened drives.
 Collegial - The basis of this model is partnership
with a managerial orientation of teamwork. The
employees in turn are oriented towards responsible
behavior and self-discipline. The employee need
that is met is self-actualization. The performance
result is moderate enthusiasm.

• Although there are four separate models, almost no

organization operates exclusively in one.

• There will usually be a predominate one, with one

or more areas over-lapping in the other models.
• The first model, autocratic, has its roots in the
industrial revolution.
• The managers of this type of organization
operate out of McGregor's Theory X.
• The next three models begin to build on
McGregor's Theory Y.
• They have each evolved over a period of time and
there is no one "best" model.
• The collegial model should not be thought as the
last or best model, but the beginning of a new
model or paradigm.
Theory X Theory Y

Avoid
Work is Natural
Work

Must be Self-
Controlled Direction

Avoid Seek
Responsibility Responsibility

Good Decisions
Seek Security
Widely Dispersed
 Globalization  Managing change
 Changing nature of  Changes in the
competition employee – employer
 Demographic changes relationship, including
and diversity declining loyalty
 Lack of interpersonal  Increase in the number
(people) skills and severity of work/life
 Changing nature of conflicts
competitive advantage,  Importance of ethics
including innovation
 Four types of organization designs have
emerged in response to certain deficiencies
in conventional designs and to rapid
advances in technology. They are
 Matrix
 Network
 Virtual
 Learning
 Only Learning Organizations will survive in
present competitive market
 It ability is to learn ,create, codify and utilize
knowledge faster.
 It has the capacity to adapt and change.
 Learning Organizations like individuals
constantly learn.
 Old shibboleth is demolished and a new order
created
 Teaches managers to look at the world afresh
Leader in this field is Senge –’The Fifth
Discipline’, He says
 Old methods of TQM, learning from mistakes
etc are insufficient
He put forward 5 compact technologies
 Systems Thinking
 Personal Mastery
 Mental Models
 Building shared visions
 Team learning
 "The essence of organisational learning is
the organisation's ability to use the amazing
mental capacity of all its members to create
the kind of processes that will improve its
own" Nancy Dixon, 1994
 "Organisations where people continually
expand their capacity to create the results
they truly desire, where new and expansive
patterns of thinking are nurtured, where
collective aspiration is set free, and where
people are continually learning to learn
together"
 “A learning organization is an organization skilled at
◦ creating,
◦ Acquiring
◦ Transferring knowledge
◦ Modifying its behavior to reflect new knowledge and
insights”
 New ideas are essential if learning is to occur
 Ideas cannot change an organization, it can only
trigger organizational improvement

 Requires both generation and distribution

 Team-Based Structure

Learning
Organization
Empowered Open
Employees Information
 Learning organizations are skilled at five main
activities
• Systematic problem solving
• Experimentation with new approaches
• Learning from their own experience
• Transferring knowledge quickly & efficiently
throughout the organization
 Each is accompanied by its own
distinctiveness
Function Traditional
Determination of overall
Organization
Vision is provided by top
Direction management
Formulation and It is the prerogative of the top
implementation of ideas management
Nature of organizational Each one is responsible for
thinking his or her job responsibilities
and focus on individual
competence
Conflict Resolution Through the use of power and
hierarchical influence
Leadership and Motivation Role of
leader is to establish the
organization’s vision, provide
rewards and punishment as
appropriate and maintain
overall control of employee
activities
Learning
Organization
Shared vision ,emerges from
many places but top
management to ensure that it
is followed
Ideas take place at all level of
the organization
Personnel understanding their
own jobs as well as the way in
which their own work
interrelates with and
influences that of other
personnel
Use of collaborative learning
and the integration of diverse
viewpoints of personnel in the
organization
Role of leader is to build a
shared vision ,empower
personnel ,inspire
commitment and encourage
effective decision making
Brand Equity Intellectual
Equity

Brand Intellectual
Capital

Product Organizational
Learning
 Learning is distributed & self-directed
 Large investment in learning
 Internal learning objects may have value to
partners & customers
Insert Figure 1.1 here
 Any
Questions