INTRODUCTION

Organizational behavior (OB) is a behavioral science that studies human behavior in

organizations, focusing on individuals, groups, and interactions within the organization. It
uses scientific methods to understand and predict how people behave in specific situations.
OB is crucial for managers to understand the factors affecting human behavior and act
accordingly to improve employee performance. Factors such as motivation, leadership,
communication, conflict management, perception, and learning are considered in OB, as the
same people may behave differently in different situations. Therefore, understanding and
addressing these factors is essential for effective employee management.

DEFINITIONS OF OB
According to Cook and Hunsaker, “Organizational behavior refers to the behavior of
individuals and groups within organizations and the interaction between organizational
members and their external environments.”
According to J.W. Newstrom, “Organizational behavior is the systematic study and careful
application of knowledge about how people- as individuals and as groups –act within
organizations.”

From the above definitions, we gather that organizational behavior facilitates in

improving managerial effectiveness by following ways: -
Describing behavior: Managers can describe how people behave in different conditions.
Understanding behavior: They understand why people behave differently in different
situations.
Predicting behavior: Managers try to predict the future behavior of employees.
Controlling behavior: They control human behavior at work through team effort, skill
development, etc.

Characteristics of Organizational behavior

i. Separate field of study: A distinct field of study that focuses on the human side of
organizations, emphasizing that interpersonal relationships are as important as job
conditions in influencing employees' behavior.
ii. Part of Management: Organizational behavior is a crucial part of management that deals
with the human aspect of the organization. As human behavior plays a significant role in
organizations, studying organizational behavior as a separate field becomes imperative.
iii. Level of analysis: The study of organizational behavior analyzes behavior at three levels:
individual behavior, group behavior, and the behavior of the organizations themselves.

iv. A Science as well as an Art: Organizational behavior is a science and an art, with
systematic knowledge about human behavior being a science and the application of
behavioral knowledge and skills an art.

v. Interdisciplinary approach: Organizational behavior draws rich knowledge from several

other social sciences like psychology, sociology, and anthropology.

vi. Rational Thinking: The primary goal of organizational behavior is to describe and predict
human behavior within organizations, thereby fostering positive situations.

vii. Useful to both Organization and Individuals: The study of organizational behavior creates
an optimistic atmosphere whereby both the organization and individuals help each other in
achieving organizational objectives.

Importance of Organizational Behavior

The objective of organizational behavior is understanding, explaining, and predicting human
behavior so that the organizational objectives are met by satisfying the employees.

The significant goals of organizational are explained below: -

1. Understanding Human Behavior:

o OB analyzes human behavior at individual, group, and organizational levels.
o Rational thinking is promoted when understanding human behavior without biases.
o It’s a separate field of study and a part of management.
o An interdisciplinary approach combining science and art.
o Beneficial for both organizations and individuals.
2. Predicting Human Behavior:
o OB provides theories and research to help managers predict individual behavior.
o Anticipating the effects of actions aids decision-making.
3. Creating an Effective Organizational Climate:
o OB understanding contributes to a positive work environment.
o Factors like satisfactory conditions, fair compensation, and good equipment matter.
4. Training Managers:
o OB is formally taught in educational curricula.
 Managers can benefit from OB concepts and techniques.
o
5. Managing Organizational Change:
o Understanding OB helps manage resistance to change.
o Technological, social, or political changes can be navigated effectively.
6. Improving Communication:
o OB analysis identifies factors affecting communication.
o Enhancing communication processes leads to better organizational outcomes.

Limitations of Organizational Behavior

1. Reducing, Not Abolishing Conflict and Frustration:
o OB can mitigate conflict and frustration but cannot eliminate them entirely.
o It serves as an improvement tool rather than an absolute solution to problems.
2. Law of Diminishing Returns:
o Applies to OB practices.
o Beyond a certain point, increasing desirable practices yields diminishing or negative
returns.
o For instance, excessive security may hinder employee initiative and growth.
3. Ethical Concerns:
o OB knowledge and techniques could be misused.
o Manipulating people without considering their well-being is a significant worry.

Levels of analysis of Organizational Behavior

Organizational behavior examines three levels within an organization: individual, group, and organizational.
These levels are interconnected, and understanding behavior at each level is crucial for effective
management.

1. Individual Level (Micro OB):

o At this level, we focus on individual behavior.
o Key factors include personality, attitudes, perception, learning, and motivation.
o Understanding individual behavior is crucial due to its impact on internal and
external environments.
2. Group Level (Meso OB):
o Here, we examine behavior within groups or teams.
o Group dynamics, leadership, communication, and shared goals play vital roles.
o Managers must grasp these dynamics to reduce conflicts and enhance morale and
productivity.
3. Organizational Level (Macro OB):
o At the macro level, we analyze the entire organization as a system.
o Factors include organizational culture, values, inter-organizational conflicts, and
environmental variables.
o Strategy, structure, and culture contribute to organizational behavior.

Challenges in Organizational Behavior

the challenges faced by managers in adapting their workforce to the evolving environment:

1. Managing Globalization:
o Globalization connects markets and businesses worldwide.
o Challenges include unfamiliar laws, language barriers, changed management styles,
and foreign work ethics.
o Organizations must adjust to remain competitive.
2. Managing Technology:
o Information technology drives business growth.
o Tasks like recruitment and sales rely on technology.
o Employees must continually update skills and embrace new technology.
3. Managing Innovation and Change:
o Change is constant but not always easy.
o Organizations must transform practices regularly to survive in a competitive
environment.
o Human resources play a key role in driving change.
o Managers face the challenge of stimulating employee creativity while preparing
them for change.
4. Managing Workforce Diversity:
o Managers grapple with the challenge of handling a diverse workforce.
o Diversity includes variations in gender, age, education, skills, and nationality.
o Addressing diverse aspirations and demands is essential, considering the non-
uniformity in the workforce.
5. Improving Quality and Productivity:
o Customer satisfaction hinges on offering quality products and services.
o Consumer awareness of price and quality has increased.
o Companies are restructuring and redesigning processes to enhance quality and
productivity.
6. Empowering the Workforce:
o Empowerment involves granting employees autonomy and decision-making
responsibility.
o Managers play a crucial role in providing this freedom.
7. Improving Ethical Behavior:
o Employees encounter the challenge of defining ethical behavior at the workplace.
o Lack of clarity on expected ethical practices poses a problem.
o Managers should develop a code of ethics to guide employees through ethical
dilemmas.
o Activities like organizing seminars, workshops, and training programs contribute to
enhancing ethical behavior.
8. Ensuring Work-Life Balance:
o Modern employees seek a balance between work and personal life.
o Companies can implement specific work-life practices to boost morale, productivity,
and overall well-being.

Models of Organizational Behavior

1. Autocratic Model:
o Assumption: Employees need close supervision and direction.
o Characteristics:
▪ Centralized decision-making by top management.
 ▪ Limited employee involvement.
▪ Hierarchical structure.
▪ Emphasis on authority and control.
2. Custodial Model:
o Assumption: Employees primarily seek economic security.
o Characteristics:
▪ Focus on employee benefits (e.g., compensation, perks).
▪ Employee loyalty in exchange for security.
▪ Minimal employee participation in decision-making.
▪ Emphasis on compliance.
3. Supportive Model:
o Assumption: Employees are motivated by social needs and relationships.
o Characteristics:
▪ Supportive leadership.
▪ Encouragement of employee growth and development.
▪ Open communication.
▪ Teamwork and collaboration.
4. Collegial Model:
o Assumption: Employees are self-motivated and responsible.
o Characteristics:
▪ Mutual trust and respect.
▪ Shared decision-making.
▪ Collaborative work environment.
▪ Emphasis on professional expertise.

GROUP DYNAMICS
• Group Definition:
o A group consists of several individuals working together to achieve a specific task or
goal.
• Group Dynamics:
o Refers to the attitudinal and behavioral characteristics of a group.
o Explores how groups form, their structure, processes, and functioning.
• In Organizational Context:
o Groups are common entities within organizations.
o Studying groups and their dynamics is essential in organizational behavior.

FEATURES OF A GROUP
1. Interaction between Members:
o Group members must interact with each other.
o Influence and mutual impact occur within the group.
2. Norms:
o Groups have norms, which are codes of conduct defining acceptable behavior.
o Norms may apply universally or to specific members.
o Some norms are strictly followed, while others allow flexibility.
3. Cohesiveness:
 o Cohesiveness measures the group’s attraction to its members.
o It reflects team spirit and willingness to coordinate efforts.
o Social groups develop a strong sense of unity (“we” feeling).
4. Communication:
o Communication enables understanding and influence among group members.
o Effective communication fosters collaboration and shared goals.
5. Awareness:
o Group members should be aware of each other.
o Relationships are based on common interests, goals, and activities.
6. Common Objectives:
o Group formation centers around shared objectives or purposes.
o Each member contributes to achieving the group’s common goals.

Types of groups in an Organisation

1. Based on Size:

o Groups in an organization are categorized by the number of people.

o Two main types: small groups and large groups.

A. Small Group:

o A small group consists of a closely and neatly packed set of few members.
o Members in small groups can have face-to-face communication, interpersonal
relations, and interdependence.
o Smaller groups tend to foster close relationships.

B. Large Group:

o A large group is formed by combining several small groups.

o Larger groups are effective when individual efforts need to be combined, such as in
brainstorming sessions.
o Examples of large groups include society and nation
 2. Based upon association:

A. Primary Group:

o Comprises a small group of people who interact regularly or have close

associations.
o Examples include families or small teams with a leader.
o Values, beliefs, and culture are significant within primary groups.
o Shared sense of identity, goals, and interests.

B. Secondary Group:

o Formed when many people come together (who do not normally interact).
o Interaction among secondary group members is less frequent than in primary
groups.
o Based on formal and contractual relationships.

3. Based on formality:

A. Formal Group:

o Created deliberately within an organization to fulfill specific roles or tasks.

o Formulated by management based on individuals’ capabilities.
o Roles and tasks are assigned systematically.
o Examples include work groups, teams, committees, or task forces.

B. Informal Group:

o Emerges spontaneously within an organization due to personal, social, and natural

instincts among members.
o Not governed by formal authority or relationships.
o Arises from human interactions based on common interests, needs, and values.

Meaning and definition of group dynamics

Basic assumptions behind studying group dynamics are:

1. Group formation is unavoidable.

2. Groups tend to exercise significant impact on the behaviour and performance of its
members.

3. Group formation can lead to both good and bad results for the organisation.

4. To facilitate organisational objective accomplishment, it is necessary that the

management should have knowledge on group dynamics.
Reasons for formation of groups
1. Companionship:
o Humans have an innate need for social relationships.
o Informal groups allow individuals to satisfy their social needs at work.
2. Sense of Identification:
o Workers feel more identified when part of a small, distinct group.
o Morale tends to be high in such groups.
o Examples include cultural societies, literary clubs, and sports teams.
3. Security:
o Group membership reduces feelings of isolation.
o Groups protect members from external pressures (e.g., long working hours).
4. Goal Achievement:
o Tasks and goals are easier to accomplish within a group.
o Collective problem-solving enhances efficiency.
5. Breaking Monotony:
o Interactions within a group reduce mental fatigue.
o Frequent breaks and interactions refresh workers.
6. Vent for Frustration:
o Informal groups provide an outlet for employee stress.
o Workers discuss family or work-related issues with group members.
7. Innovation and Creativity:
o Groups foster new ideas and alternative methods.
o Members seek agreement on innovative proposals.
8. Source of Information:
o Informal groups facilitate fast information exchange among members.

Benefits/Merits of informal groups in an organization

1. Support to the Formal Structure:
o Informal groups add a human dimension to the otherwise hierarchical and
emotionless organizational structure.
o They provide social connections and a sense of belonging.
2. Filling Gaps in Managers’ Abilities:
o Open-minded informal groups can compensate for managers’ skill gaps.
o Group members contribute abilities and skills that the manager may lack.
3. Fast Communication:
o Informal groups facilitate swift communication.
o Barriers related to status and position are minimized.
4. Better Relations and Coordination:
o Managers build better relationships with subordinates through informal interactions.
o Cooperation from workers is sought more effectively.
5. Problem Solving:
o Informal groups allow members to collaborate and solve work-related issues.
o Knowledge and experience are shared within the group.
6. Social Functions:
o Informal groups fulfill social needs (security, friendship, belonging).
o Members express feelings and find emotional support.
7. Norms of Behavior:
 o Informal groups establish norms that distinguish good conduct from bad.
o These norms contribute to discipline within the organization.

Demerits of Informal groups

1. Resistance to Change:
o Informal groups resist changes perceived as threats to their culture and structure.
o Such behavior can negatively impact organizational growth prospects.
2. Restriction of Output:
o Informal groups may pressure members to limit their output or performance.
o Mismatch between organizational and group goals can occur.
3. Role Conflict:
o Members belong to both formal and informal groups.
o Role conflict arises when informal group expectations clash with formal
organizational expectations.
o Conforming to social norms may create tension.
4. Rumors:
o Informal communication spreads inaccurate, incomplete, and distorted information
(rumors).
o Lack of full information and anxiety contribute to rumors.
o Rumors can exert pressure on management.
5. Politics by Informal Leaders:
o Informal leaders engage in power politics to dominate management.
o They may undermine organizational structure, values, and goals.
6. Social Costs:
o While informal groups provide emotional support, they can devolve into joke-sharing
and gossip.
o Excessive socializing increases operating costs for the organization.

MERTIS AND DEMERITS

Dealing with Informal groups
1. Positive Attitude towards Informal Groups:
o Organizations should support and recognize informal groups.
o Positive attitude fosters growth and development within these groups.
2. Rapport with Informal Leaders:
o Managers should maintain healthy relations with informal leaders.
o Informal leaders act as liaisons between workers and management.
o Managers can seek advice on technical matters and human relations.
3. Involvement of Groups:
o Management should include informal groups in decision-making processes.
o Recognition and active participation enhance group members’ sense of belonging.
4. Use of Informal Communication:
o Informal communication channels are valuable for managers.
o Managers can encourage, guide, and counsel workers through informal contacts.
5. Developing Common Areas of Interest:
o Identifying shared interests and tasks benefits the organization.
o Informal leaders should be informed and consulted during changes.