Module 1

Introduction to Human Behavior in organization

What is Human Behavior in Organization or Organizational Behavior?

Human Behavior in organization or Organizational behavior (OB) is defined as the systematic study and application
of knowledge about how individuals and groups act within the organizations where they work.

It is the study of human behavior in organizational settings, how human behavior interacts with the organization, and
the organization itself. Organizational behavior theories inform real-world evaluation and management of groups of
people.

Organizational Behavior Definition

A field of study that investigates the impact of individuals, groups and structures on behavior within organizations for
the purpose of applying such knowledge towards improving an Organization’s effectiveness. Stephen P Robbins

Organizational behavior can be defined as the understanding; prediction and management of the human behavior
affect the performance of the organizations. Luthans

The study and application of knowledge how people act or behave within organization. It is a human tool for human
benefit. It applies broadly to the behavior of people in all types of organizations such as business, government,
school and service organizations. Davis and Newstrom

Why study Organizational Behavior?

1. Understand organizational events

2. Predict organizational events

3. Influencing organizational events

Understand organizational events

The main reason for studying organizational behavior is that most of us work in organizations, so we need to
understand, predict, and influence the behaviors of others in organizational settings.

But all of us need organizational behavior knowledge to address people issues when we try to apply marketing,
computer science, and other ideas.

Predict organizational events

Satisfying the need to understand and predict. Every one of us has an inherent need to know about the world in
which we live. This is particularly true in organizations because of their profound effect on our lives.

Influencing organizational events

It’s nice to understand and predict organizational events, but most of us want to influence the environment in which
we live. OB knowledge will help you to influence organizational events.

Challenges for Organizational Behavior

 The Changing Social and Cultural Environment

 The Evolving Global Environment

  Advancing Information Technology

 Shifting Workforce Diversity and Employment Relationships

 Responding to Economic Pressures

 Improving People Skills

 Helping Employees Balance Work–Life Conflicts

Organizational Behavior Theories

1. Bureaucracy Theory

2. Scientific Management Theory

3. Process Management Theory

Bureaucracy Theory. Max Weber (1864-1920) a German sociologist introduced the theory of Bureaucracy. His major
contribution to the theory is the concept of authority, structure and its inter-se relationship.

Weber in his model of bureaucracy stated that there are three types of authority in any organization.

 Legal authority indicating that a person holds authority based on legal position or rank within the
hierarchy.
 Traditional authority: employees obey a person because he comes from a traditionally recognized power
holding family or a person belonging to a royal family.
 Charismatic authority: which indicates special power or an appeal that a leader possesses.

Scientific Management Theory. Scientific management approach was developed by F.W. Taylor at the beginning of
the 20th century.

 This theory supported the use of certain steps in scientifically studying each element of a job, selecting and
training the best workers for the job.

 It provided a scientific rationale for job specialization and mass production. His assumption was that
employees are motivated largely by money.

 Taylor recommended co-operation among workers as against chaotic individualism.

Process Management Theory. Process Management Theory is also known as Administrative theory. Fayol looked at
the problems from the top management point of view.

He has used the term ‘administration’ instead of management emphasizing that there is unity of science of
administration and he has emphasized that principles of management.

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
Characteristics of Organizational Behavior (OB)

1. Separate Field of Study and not a Discipline Only. OB is based on multi-interdisciplinary orientation and is,
thus, it is not based on a specific theoretical background.

2. An Interdisciplinary Approach. Organizational behavior is an applied behavioral science built on

contributions from a number of behavioral disciplines, mainly psychology and social psychology, sociology,
and anthropology.

3. Applied Science. OB can be called both science as well as art because it involves both applied research and
its application in organizational analysis.

4. Normative Science. OB describes how the findings of applied research can be applied to socially accepted
organizational goals whereas the positive science discusses the only cause-effect relationship.

5. Humanistic and Optimistic Approach. OB deals with the people and their interaction with organizations.

6. Total System Approach. System approach is one that integrates all the variables, affecting organizational
functioning.

The Organizational Behavior Importance can be discussed as follows:

1. Explain individual and group behavior

2. Predict certain behavioral response to change

3. Control Behavior

Explain individual and group behavior

We are pursuing the explanation objective when we want to know why individuals or groups behave the way they do.

For example, if the turnover rate in an organization is very high, we want to know the reason, so that action can be
taken to correct the situation in the future.

Predict certain behavioral response to change

Prediction seeks to determine what outcomes will result from a given action. Having a sound knowledge of OB will
help the manager to predict certain behavioral responses to change. In this way, the manager can anticipate which
approaches will generate the least degree of employee resistance and use that information in making decisions.

Control Behavior

The knowledge of OB can be used by managers to control behavior. Managers frequently see the control objective as
the most valuable contribution that OB makes toward their effectiveness on the job.

4 Approaches to Organizational Behavior studies

1. Human resources approach

2. Contingency approach

3. System approach

4. Productivity approach

Human Resources Approach. Organizational behavior is mainly interested in the development of its human
resources.
The employees’ growth and development in an organization are basic requirements for its continuous growth and
survival. Traditionally, managers were important for deciding on task performances and carrying them out
successfully under their directions.

Contingency Approach. Behavioral science is being used for solving problems which may arise at any time.
Behavioral knowledge is being applied to solve these problems. Employees are therefore trained to face any sort of
problems. They should have the capacity to meet the challenges of the environment.

Different situations require different functions and behavioral approaches. It is known as the contingency approach
because it believes that there is no such thing as the best way to handle the problem.

The contingency approach is an interdisciplinary and system-oriented approach of management. There is no perfect
style of management.

System Approach. The system approach includes several subsystems which exist in an organization, and therefore
affect each other. Managers have to look beyond immediate situations to foresee future situations. The purpose is to
improve organizational behavior for effective management. A system is developed where people work in a congenial
atmosphere.

Productivity Approach. The ultimate objective of organizational behavior is to increase productivity. With the given
inputs, if production is improved, it is a symbol of productivity improvement.

The human behavior is developed for performing jobs in an effective manner. If people’s knowledge and skills are
developed, their abilities to perform tasks also increase. Organizational behavior influences people’s knowledge, skill,
attitude, ability and performance potential.

Key Elements of Organizational Behavior

4 elements of organizational behavior are:

1. People

2. Environment

3. Structure

4. Technology

Elements of Organizational Behavior:

People. People are the main component of any organization that has to be managed. Every individual has a personal
goal to be achieved.

Organizations must identify the need spectrum of individuals and take suitable steps for its fulfillment to enable them
to perform effectively so that they complete their allotted task in time.

Environment. When we talk about managing people in the organization, what we have to study and manage is
the influence of culture and its impact on the individual.

Study of the environment is very wide and encompasses economic, cultural, social, government rules and
regulations, legal aspects, political climate, demographics and its impact.

Structure. There are two types of organizations, formal and informal.

 Informal organizations do not have a specified structure.

 Formal organizations are build based upon the objective set for it. Organizational structure in such
organization is hierarchical in nature, with people at each level having their own objectives.
Technology. Managing technology is an important job of any management. It is an important element of any unit.
Selection of technology, procurement, installation, operation and maintenance is important and no compromise
should be made in procuring latest or advanced technology.

Contributing Disciplines to the Organizational Behavior field

Organizational behavior is an applied behavioral science built on contributions from a number of behavioral
disciplines, mainly psychology and social psychology, sociology, and anthropology.

The major disciplines are:

 Psychology

 Sociology

 Social Psychology

 Anthropology

Contributing Disciplines to the Organizational Behavior field

Organizational Behavior Importance

Importance of Organizational Behavior are:

1. OB provides a road map to our lives in organizations

Every one of us has an inherent need to know about the world in which we live. This is particularly
true in organizations, as they have a profound effect on our actions and behaviors.
 2. OB uses scientific research to help us understand and predict organizational life
This is not to say that this knowledge is absolute. The decisions and actions that people in
organizations make are determined by a complex combination of factors. Besides, the field of OB is
not a pure science.

3. OB helps us influence organizational events

Though it is good to understand and predict organizational events, most of us want to influence the
environment in which we live.

4. OB helps an individual understand himself/herself and others better

This helps improve interpersonal relations considerably. Of particular significance are topics like
attitude, perception, leadership, communication, and conflict, an understanding of which will change
the very style of talking and functioning of an individual.

5. OB is useful for maintaining cordial industrial relations

If an employee is slow in his or her work, or if his or her productivity is steadily declining, it is not
always because of denial of promotion or a poor work environment. The relations between
management and employees are often strained for reasons which are personnel issues, not
technical.

6. It is a discipline which enables a manager to motivate his or her subordinates towards higher
productivity and better results.

Models of Organizational Behavior

OB Model proposes three types of variables (inputs, processes, and outcomes) at three levels of analysis (individual,
group, and organizational).

The model proceeds from left to right, with inputs leading to processes and processes leading to outcomes. Notice
that the model also shows that outcomes can influence inputs in the future.

Three types of variables of OB Model:

1. Inputs

2. Processes
 3. Outcomes

Inputs. Inputs are the variables like personality, group structure, and organizational culture that led to processes.
These variables set the stage for what will occur in an organization later.

Processes. Processes are actions that individuals, groups, and organizations engage in as a result of inputs and that
lead to certain outcomes.

Outcomes. Outcomes are the key variables that you want to explain or predict, and that are affected by some other
variables.

Organizational Behavior Management

Organizational behavior management (OBM) is a form of applied behavior analysis (ABA) which applies
psychological principles of organizational behavior and the experimental analysis of behavior to organizations to
improve individual and group performance and worker safety.

The areas of application may include systems analysis, management, training, and performance improvement. OBM
resembles human resource management but places more emphasis on ABA and systems-level focus.

Reference:

1. Robbins, Stephen P. 2020. Organizational Behavior. New Delhi: Prentice Hall.

2. Davis, Keith. 2020. Organizational Behavior: Human Behavior at Work. New York: McGraw Hill.

3. Binney George (2022) “Making Quality Work” Lessons from Europe’s Leading Companies. London: The
Economist Intelligence Unit.

4. Organizational Behavior by Cite.com.

5. Sekaran Uma. “Organizational Behavior” Text and Cases, Tata McGraw Hill, New Delhi.

6. Fred Luthans, “Organizational Behavior”, McGraw Hills, International Edition, 7th Edition, 2023.