Module I Introduction of Organisational Behaviour

Concept and nature of Organizational Behaviour; Contributing disciplines to the field of O.B.; O.B
Models; Organisational Structure; Need to Understand Human Behaviour; Contemporary challenges;
Learning-Nature & significance; Learning Theories.
Organizational Behaviour
Organizational behaviour [OB] is the study of how people behave both individually and within informal and
formal groups. Every organization’s performance is ultimately dependent on the motivational levels of its
human resources and the willingness and ability of people to work harmoniously and effectively towards the
accomplishment of shared goals. It is the duty of every leader to respect individual values, job satisfaction,
and ensure collective involvement. Having challenging selection, training, and rewards for employees’ ushers
in and helps shape team players.
Stephen P Robbins
“It is a field of study that investigates the impact those individuals, groups; structures have on behaviour within
the organization, for the purpose of applying such knowledge towards improving organizational
effectiveness.”
Hence based on the definition we can say that

• OB is a field of study
• It studies individuals, groups and structures
• It applies the knowledge to improve organizational effectiveness.
Therefore, Organization Behaviour is concerned with two aspects:

• How people behave in an organization?

• How their behaviour does affect their performance?
Keith Davis
“Organizational Behaviour is the study and application of knowledge about how people act within the
organization”.
Stephen P Robbins
“It is a field of study that investigates the impact that individual, groups, structures have on behaviour within
the organization, for the purpose of applying such knowledge towards improving organizational
effectiveness.”
Hence based on the definition we can say that

• OB is a field of study
• It studies individuals, groups and structures
• It applies the knowledge to improve organizational effectiveness.
Therefore, Organization Behaviour is concerned with two aspects:

• How people behave in an organization?

• How their behaviour does affect their performance?
“Organizational Behaviour is the study and application of knowledge about how people act within the
organization”. -Keith Davis

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Module I Introduction of Organisational Behaviour
According to Stephen P Robbins - “Organisational behaviour is a field of study that investigates the impact
that individuals, groups and structure have on behaviours within the organizations for the purpose of applying
such knowledge towards improving an organizations effectiveness”.
According to Fred Luthans - “Organisational behaviour is directly concerned with the understanding
production and control of human behaviour in organization”.
According to Raman J Aldag – “Organisational behaviour is a branch of the social sciences that seeks to build
theories that can be applied to predicting, understanding and controlling behaviour in work organizations”.
By analysing the above definitions, we can define OB as a behavioural Science that states about:

• Nature of Man
• Nature of the Organization
• Knowledge of human would be useful in improving an organization’s effectiveness.
Key Element of OB

People: Individuals & Groups

Structure: Official Relationship

Technology: Physical, Economic resources

Environment: Political, Legal and Natural

NATURE OF OB
1. It is just a field of study and not a discipline: OB is accepted science with theoretical foundation
and it serves as a base of research. It is a recent field of study which has its origin from management.
It is broad based and inter disciplinary in nature. Hence it is not a discipline but a field of study.
2. It is interdisciplinary in nature: It is broad based and inter disciplinary in nature because it has its
origin from subjects like psychology, sociology, anthropology, medical sciences, political science etc.
3. It is normative science and value cantered (cause and effect application): A positive science
analyses only the cause-and-effect relationship but a normative science analyses the cause and effect
and also its application to achieve organizational results. It is also value centered as it analyses what is
acceptable to employees based on the values they have.
4. It is applied science: The principles of OB are proven and can be applied to solve organizational
problems.
5. It has humanistic approach: OB considers human feelings, their values and attitudes and considers
that human beings are not machines and they too are cared for.
6. It has optimistic approach: It has positive approach and views that the employees well contribute
positively to achieve the objectives of the organization.
7. It is directed towards achievement of organizational objectives: Organizational objectives are
given more importance than individual objectives.

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Module I Introduction of Organisational Behaviour
8. It has rational approach: It believes that there is a reason being every Behaviour of man and works
on the same formula.
9. It is developmental in nature: It aims at the development of its employees and helps them to attain
their goals.
10. It is part of management science: OB is a study that has emerged from the discipline of management.
Hence, is a part of management science.
11. It is both science and art: OB is both science and art. It is science because, like science OB is also a
systematic body of knowledge, its analyses is also consistent in nature, it can be systematically
explained and critically evaluated, the analyses are based on the findings of management theorists. It
is art because it is related to bringing desired result, it is application of skills like leadership skills,
managerial skills, training skills etc.,
12. It has total systems approach: It takes all variables in consideration. It studies individuals and groups
in formal and informal relations in organizations.
FOUNDATIONS OF OB / BASIC CONCEPT OF OB
1. Individual differences exist: Every individual has a unique personality, which is stable in nature. Hence
each person is different from the other based on his physiological, psychological and social characteristics.
Three aspects should take care while studying human behaviour.
2. Behaviour is caused: Behaviour is what a person does and it is cause and effect relationship. It means that
there is a reason behind every single behaviour on any individual. Hence the cause should be evaluated by the
manager in an organization.
3. Behaviour is complex: Though OB believes that behaviour is caused, yet it is very difficult to understand
human behaviour.
4. Value of a person: Human value is given importance. It means one should be treated with respect and
dignity. Values and attitudes should be considered. Men at workplace should be considered
5. Whole person concepts: The concept states that an individual employed by the organization is cannot be
separated from his personal life aspects. Though an organization employs a person’s skill & brain in his
organization, yet it is a fact that an individual cannot be separated from his home life and work life.
6. Role of a person: A role is a pattern of actions expected of a person in activities involving others. Each
individual plays different roles in his life time. (Parent, son, Friend, Spouse, team member, supervisor,
follower, advisor, consumer, investor etc.). it becomes necessary for him to understand the role clearly and
act accordingly.
7. Difference between individual behaviour and group behaviour: Individual behaviour may be good but
group behaviour may be bad. Group behaviour may be good but Individual behaviour may be bad. As
Individual behaviour may vary form group behaviour, human behaviour should be studied in both the aspects.
SCOPE OF OB
OB can be studied in three different levels:
1. Individual:
i. Intra Individual: Understanding human behaviour i.e. how and why an individual behaves and to
understand the factors affecting human behaviour

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Module I Introduction of Organisational Behaviour
ii. Inter Individual: To understand the working relationships, role analysis and 6transaction analysis of
individual with others.
2. Group:
i. Intra Group: Understand the group pressure on individuals, influence of group norms on individuals,
communication process in organization.
ii. Inter Group: Relationship between groups, achievement of group objectives and group objectives.
3. Organization:
i. Intra Organization: use of human power in organizations, leadership qualities, communication in
organization.
ii. Inter Organization: organization change, external relationships, Development standards and concepts
for future, Scientific and rational approach to Human Behaviour.
Disciplines contributing to Organizational Behaviour
1. Sociology: It is the study of people in relation to their fellow human beings, The field of sociology has
made valuable contributions in the study of group of individuals, group dynamics, formation of groups,
communication, formal and informal organizations etc.
2. Anthropology: It is the study of societies to learn about human beings and their activities. It helps us
to understand values, attitudes and behaviour between people in different regions and organizations.
3. Economics: It is the science that deals with the production, distribution, and consumption of goods
and services, or the material welfare of humankind.
4. History: It is the study of the origin and evolution of mankind. It helps us to understand the behaviour
of people and their origins
5. Political science: It helps us to study the current political and legal scenario and the role of the study
of human behaviour under the current situations.
Importance of OB
1. OB provides a road map to our lives in organizations: People bring to their work place their hopes and
dreams as well as their fears and frustrations. Much of the time, people in organizations may appear to be
acting quite rationally, doing their fair share of work, and doing about their tasks in a civil manner. Suddenly,
a few people appear distracted, their work slips, and they even get withdrawn. Worse still, one may find
someone taking advantage of others to further his or her personal interest. Such a range of human Behaviours
makes life in organizations perplexing. But those who know what to look for and have some advance ideas
about how to cope with pressures are more likely to respond in ways that are functional, less stressful, and
even career-advancing. Therefore, OB need to map out organizational events so that employee can function
in a more secure and comfortable environment.
2) A Manager in a Business Establishment is concerned with Getting Things Done Through Delegation:
He or she be successful when he or she can motivate subordinates to work for better results. OB will help the
manager understand the basis of motivation and what he or she should do to motivate subordinates.
3) The field of OB is useful for improving Cordial Industrial/Labour Relations: If an employee is slow
in his/her work, or if his/her productivity is steadily declining, it is not always because of a poor work
environment. Often the indifferent attitude of the boss makes the worker lazy. Similarly, reluctance of the
management to talk to union leaders about issues might provoke them to give a strike call. In other words,
relations between management and employees are often strained for reasons which are personnel issues, not

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Module I Introduction of Organisational Behaviour
technical. Human problems need to be tackled humanely. OB is very useful to understand the cause of the
problem, predict its course of action, and control its consequences. The field of OB serves as the basis for
human resource management.
4) OB helps in motivating employees: OB helps manager to motivate the employees bringing a good
organizational performance automatically that leads to job satisfaction. It helps managers to apply appropriate
motivational tools and techniques in accordance with the nature of individual employees.
5) OB helps effective utilization of human resources: OB helps managers to manage the people’s behaviour
and the organization effectively. It enables managers to inspire and motivates employees towards high
productivity and better results.
Organizational Behaviour Models

1. Feudal Model
Feudal model is defined as a type of model that considers the employees working in an organisation as an
inferior element of the organisation. The working employees were given less value in the feudal model. For
various decisions and actions in the company, the desires and values of people were not considered. This
model was majorly called Theory X, in which the procedures, actions, policies and rules were considered
with higher priority and superior to human beings. For building the motivation among employee money and
retrenchment approach was used. The model entirely concentrated only on formal organisation rather than
human and social values.
2. Autocratic Model

The autocratic Model is defined as a type of organisational model that depends upon
power, strength and formal authority. This model majorly depends on power. The
working employees need to follow the orders. The lower-level employees have less
control over the assigned duties as compared to upper-level authorities. Major
decisions are made by the higher-level authorities only. The basic principle that is
followed in the

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Module I Introduction of Organisational Behaviour
autocratic model is that owners of the company or higher managerial authorities have
higher expertise in business, whereas lower-level employees have fewer skills and
experience.
Might is right” is the motto of the theory. It depends upon power. Those who are in command must have power
to demand. Employees are to follow their boss. Management thinks that employees are passive and resistant
to organisational needs. It is just like theory developed by McGregor. Under autocratic conditions the
employee orientation is obedience to a boss, not respect for a manager. The psychological result for employee’s
orientation is dependence on their boss, whose power to hire, fire, etc., is almost absolute. The boss pays
minimum wages because minimum performance is given by employees. They are willing to give minimum
performance though sometimes reluctantly because they must satisfy subsistence needs for themselves and
their families. The autocratic model has existed for thousands of years. During the Industrial Revolution, it
was the prominent model of organisational function. The managers of this type of organisation operate mostly
out of Mc Gregor’s Theory X. As you might recall, this philosophy of management assumes that people are
inherently lazy, dislike work, and will avoid work if they can. As a result, management needs to closely
supervise workers and develop comprehensive systems of control. Beliefs of this theory lead to mistrust,
highly restrictive supervision, and a punitive atmosphere.
The model depends on power with a managerial orientation of authority- those who are in power act
autocratically. The message to employees is- ‘You do this, or else’, meaning that employees who do not follow
orders are penalised, often severely. In an autocratic environment the managerial orientation is formal, official
authority. This authority is delegated by right of command over the people to it applies.
The employees in turn are oriented towards obedience to a boss, not respect for a manager. The psychological
result for employees is dependence on their boss, whose power to hire, fire, and “perspire” them is almost
absolute. The employee need that is met is subsistence (for themselves and their families). The boss pays
minimum wages because minimum performance is given by employees. Some employees give higher
performance because of an internal achievement drive, because they personally like the boss, because the boss
is a natural leader, or because of some other situational factor; but most of them give only minimal
performance.
When an autocratic model of organisational behaviour exists, the measure of an employee’s morale is usually
his compliance with rules and orders. Compliance is “unprotesting assent without enthusiasm” (Hicks, 1971,
p. 186). The compliant employee takes his orders and does not talk back.
The autocratic model uses one-way downward communication emanating from the top down to the workers.
Management believes that it knows best. Employees are obligated to follow orders. Management does the
thinking; employees have to obey the directives. Under such conditions, the “worker’s role is obedience to
management” (Zastrow, 2009, p. 260).
3. Custodial Model

Custodial Model is defined as a type of model where economic resources are

considered as the root level. In this model, the employees and working professionals
of the company are adapted to the benefits and security provided by the company
as every employee considers security as the major parameter while working. The
firms with more resources majorly adapt this model as the model is dependent upon

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Module I Introduction of Organisational Behaviour
the availability of high economic resources. The custodial model is based on rewards.
It overcomes the limitations of the autocratic model. In most companies, more benefits
such as healthcare benefits and corporate cars are also being provided along with
security.
Workers being managed under the autocratic model often feel insecurity and frustration. They may even show
aggression towards their boss and their families and neighbours. That is why progressive managers felt that
there must be some way to develop better employee relationships so that insecurity and frustration could be
dispelled. The custodial model provides for employees’ dependence on organisation rather than dependence
on their boss. The model emphasizes economic reward, security, organisational dependence, and maintenance
factors. The custodial approach leads to employee dependence on the organisation. Rather than being
dependent on their boss for their weekly bread, employees now depend on organisations for their security and
welfare. Employees working in a custodial environment become psychologically preoccupied with their
economic rewards and benefits. As a result of their treatment, they are well maintained and contented.
However, contentment does not necessarily produce strong motivation. It may produce only passive
cooperation. The result tends to be that employees do not perform much more effectively than under the old
autocratic model.
As already mentioned, the managers using an autocratic model operate mostly out of McGregor’s Theory X.
The next three models, starting from the custodial model, begin to build on McGregor’s Theory Y. The Theory
Y approach to management is more progressive and paints a more optimistic picture of employees than Theory
X. Managers holding the custodial model believe that if the insecurities, frustrations, and aggressions of
employees could be dispelled, they might feel like working. Development of the custodial model was aided
by psychologists, industrial relations specialists, and economists.
The custodial model of organisational behaviour takes into consideration the security needs of employees. A
custodial environment gives a psychological reassurance of economic rewards and benefits. The basis of this
model is economic resources with a managerial orientation toward money to pay wages and benefits. Clearly,
if an organisation does not have the wealth to provide pensions and pay other benefits, it cannot follow a
custodial approach.
A successful custodial approach depends on economic resources. Since employees’ physical needs are already
reasonably met, the employer looks to security needs as a motivating force. To satisfy employees’ security
needs, many companies began to provide welfare programs, such as pension plans, child-care centres at the
workplace, health and life insurance.
However, researchers found that the custodial approach leads to employee dependence on the organisation.
Rather than being dependent on their boss for their weekly bread, employees now depend on organisations for
their security and welfare. Employees working in a custodial environment become psychologically
preoccupied with their economic rewards and benefits. Employees working under such a model tend to focus
on economic rewards and benefits. As a result of their treatment, they are certainly happier and more content
than under the autocratic model, but they do not have a high commitment in helping the organisation meet its
goals.
4. Supportive Model

As the name itself suggests, the supportive model is defined as a type of model that
considers leadership as its root level. In this model, the employees are oriented
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Module I Introduction of Organisational Behaviour
towards their participation and job performance. This model helps employees to
improve their overall performance and enhance learning. Public sector
organisations majorly follow a supportive model because it is based on leadership.
In this model more importance is given to job satisfaction, friendly relationships
between superiors and subordinates, and psychological needs of the employees. The
role of the higher manager is to get the work done by helping their employees.
The basic idea behind this theory is that leadership motivates the people to work and not the power of money
as in custodial model. Through leadership management provides a climate to help employees grown and
accomplish in the interest of the organisation, the things of which rather than to simply support employee
benefit payments as in the custodial approach. Under the supportive model, the workers feel a sense of
participation and task involvement in the organisation. The manager’s role is one of helping employee solve
their problems and accomplish their work. This model has been found to be effective in affluent countries
where workers are more concerned about their higher level needs affiliation and esteem. This model has
limited application under Indian conditions because a vast majority of operative workers are more concerned
about their higher level needs affiliation and esteem. The supportive model of organisational behaviour seeks
to create supportive work environment and motivate employees to perform well on their job. The basis of this
model is leadership with a managerial orientation of support. The supportive model depends on leadership
instead of power or money.
The supportive model works well with both employees and managers, and has been widely accepted at least
in principle, though it is not easy to translate it into practice. One advantage of this model as you can see is
that, supportive behaviour is not the kind of behaviour that requires money. It is a part of management’s
lifestyle at work, that reflects in the way that it deals with other people. This model tends to be very effective
particularly in developed nations because it awakens employee drives toward a wide array of needs. It is less
applicable in developing nations like ours, because employees might still be trying to meet their sustenance
needs. As their needs for material rewards and security become satisfied, employees here might also demand
a more supportive approach, as has already started to happen.
5. The Collegial Model

The collegial model is a further extension of the supportive model. The word collegial
means bodies of different individuals working towards a common goal. The
partnership is the root level of the collegial model the approach adopted is the
teamwork approach. The workers in the collegial model are satisfied in their job roles
and are committed towards the overall growth of the organisation. It is the
responsibility of the manager to create a healthy and positive workplace for his
employees. The collegial model works more effectively in finding new approaches
such as research and development, marketing teams, technologies and software, etc.
A useful extension of the supportive model is the Collegial model. The term Collegial relates to a body of
persons having a common purpose. The collegial model, which embodies a term concept, first achieved
widespread applications in research laboratories and similar work environments. The collegial model
traditionally was used theory is based on the principle of mutual contribution by employer and employees.

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Module I Introduction of Organisational Behaviour
Each employee should develop a feeling that he is a part of the whole and contributing something to the whole
and recognizes the others contribution. Management is supported to be joint contribution and not the boss.
The managerial orientation is toward teamwork. Management is the coach that builds a better team. The
employee response to this situation is responsibility The collegial approach for the employee is self-discipline.
In this kind of environment employees normally feel some degree of fulfilment, worthwhile contribution, and
self-actualisation, even though the amount may be modest in some situations. This self-actualisation will lead
to moderate enthusiasm in performance.
The term ‘collegial’ literally means a body of people having a common purpose. An extension of the supportive
model, the collegial model relates to a body of people working together cooperatively feeling a commitment
to achieve a common purpose. Some organisations, for e.g., most human service organisations have a goal of
creating a collegial atmosphere to facilitate achieving their purposes.
The basis of this model is partnership with a managerial orientation of teamwork. Management is akin to the
coach that builds a better team. Managers are seen as joint contributors rather than as bosses. Since the
management nurtures a feeling of partnership with its employees, the employees feel themselves as an asset
to the organisation. They feel needed and useful. The employee’s response to this situation is responsibility.
They feel that managers are contributing also, so it is easy to accept and respect their roles in their organisation.
For example employees produce quality work not because management tells them to do so or because the
supervisor will reprimand them or worse even fire them if they do not, but because they feel inside themselves
an obligation to provide others with high quality. They also feel an obligation to uphold quality standards that
will bring credit to their jobs and company. The psychological result of the collegial approach for the employee
is self-discipline. Feeling responsible, employees discipline themselves for performance on the team much in
a similar same way that the members of a football team discipline themselves to training standards and the
rules of the game.
6. Human Value Model
The human value model is defined as a model that gives more importance to human values. This model is
opposite to that of the feudal model. The human values of the employees were more appreciated than the
economic values. The employees working in an organisation work to fulfil their social and psychological
needs rather than focusing only on economic needs. This model is for human dignity.
7. Contingency Model
Contingency Model is defined as a complex model. The contingency Model of organisational behaviour
assumes the complex variables that consist of the behaviour of individuals, groups and structure. Therefore,
this model meets all the challenges for the growth of the organisation. To demonstrate the contingency
model Theory Z is being developed. Contingency Model is also known as a hybrid model. The contingency
Model guarantees the promotion and long-term employment opportunities for the employees working in the
organisation.
Comparison of the Models of Organisational Behaviour

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Module I Introduction of Organisational Behaviour

Case Study
Organisation XYZ Solutions was dealing with problems of employee turnover, absenteeism, and stress related
problems. A survey showed that employees, a lot of them young mothers (many single) had huge problems
arranging for quality child care that lead to the above mentioned problems. The company decided to subsidize
an on-site day care center, which very soon became filled to capacity. It required huge economic investment
from the Company- about Rs. 12, 40, 000 per year- and created organisational dependence. This can be seen
from a comment made a young mother, “It would really take a mind-blowing job offer from another company
now for me to leave XYZ”. Which model of organisational behaviour is operating in Organisation XYZ
Solutions?
(a) Autocratic (b) Custodial (c) Supportive (d) Collegial

Custodial model focuses on providing economic security and benefits to employees. This model is
characterized by the organization taking on a protective, welfare-oriented role, ensuring that employees feel
secure and well-cared-for in terms of financial and material needs. Employees in such an environment tend to
develop a sense of dependence on the organization because of the benefits and security provided.

Key Characteristics of Custodial Model:

1. Economic Security: The organization offers financial benefits such as insurance, retirement plans,
and other forms of economic security.
2. Employee Dependence: Employees often become dependent on these benefits and feel a strong sense
of loyalty to the organization because of the security it provides.
3. Employee Satisfaction: Satisfaction is derived from the economic benefits rather than from the job
itself or self-actualization.

Application to XYZ Solutions:

• Economic Investment in Day Care: XYZ Solutions invested a substantial amount (Rs. 12,40,000 per
year) in subsidizing an on-site day care center, ensuring that employees, particularly young mothers,
have access to quality child care.
• Organisational Dependence: The quote from the young mother, “It would really take a mind-blowing
job offer from another company now for me to leave XYZ”, indicates that employees feel a strong
sense of loyalty and dependence on the company because of the child care benefit provided.
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Module I Introduction of Organisational Behaviour
Conclusion: The significant investment in the day care center and the resulting employee dependence clearly
align with the Custodial model of organisational behaviour. Employees are staying with the company not just
for the job but for the economic security and benefits provided by the organization.

Case 2

Organisation ABC Electronics recently abolished the use of reversed parking spaces for executives, as was
the earlier practice. Now every employee has an equal chance of finding a parking space close to the
workplace. It has eliminated the use of terms like ‘bosses’ and ‘subordinates’, feeling that such terms simply
crate perceptions of psychological distance between management and managers. It also sponsors team
building activities, such as river rafting trips in Rishikesh and requires managers to spend a week or two
annually working in factory locations. Which model of organisational behaviour is operating in Organisation
ABC Electronics?

(a) Autocratic (b) Custodial (c) Supportive (d) Collegial.

Collegial model is characterized by a partnership between employees and management, fostering a sense of
teamwork and collaboration. This model promotes an environment where everyone works together with a
sense of shared responsibility and mutual respect. The emphasis is on team-building, equality, and creating a
cohesive, cooperative work environment.

Key Characteristics of Collegial Model:

1. Teamwork: Emphasizes collaboration and partnership among employees and management.

2. Equality: Minimizes hierarchical distinctions and promotes a sense of equality.
3. Shared Responsibility: Encourages employees to take responsibility and actively participate in
decision-making processes.
4. Psychological Closeness: Reduces psychological distance between different levels of the
organization.

Application to ABC Electronics:

• Equal Parking Spaces: Abolishing reserved parking spaces for executives and giving every employee
an equal chance of finding a parking space close to the workplace emphasizes equality.
• Elimination of Hierarchical Terms: Removing terms like 'bosses' and 'subordinates' reduces
psychological distance and fosters a sense of equality and teamwork.
• Team Building Activities: Sponsoring team-building activities like river rafting trips in Rishikesh
promotes teamwork and collaboration.
• Managerial Participation: Requiring managers to spend time working in factory locations each year
creates a sense of shared responsibility and closeness with other employees.

Conclusion: The actions taken by ABC Electronics—such as promoting equality, fostering teamwork, and
minimizing hierarchical distinctions—are clear indicators of the Collegial model of organisational behaviour.
This model is designed to create a supportive and collaborative work environment where every employee feels
valued and part of a cohesive team.

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Module I Introduction of Organisational Behaviour
Organisational Structure

“Every company has two organizational structures: The formal one is written on the charts; the other is the
everyday relationship of the men and women in the organization” -Harold S. Geneen
The structure of an organization will determine the modes in which it operates and performs. Organizational
structure allows the expressed allocation of responsibilities for different functions and processes to different
entities such as the branch, department, workgroup and individual. The classical organization structure designs
are simple, centralized, bureaucratic and divisionalized. Planning the structure ensures there are enough
human resources within the company to accomplish the goals set forth in the company’s annual plan. It is also
important that responsibilities are clearly defined. Each person has a job description that outlines duties, and
each job occupies its own position on the company organization chart.

WHY ORGANISATION STRUCTURE IS SUBJECT MATTER TODAY?

When an organization’s structure is misaligned, its resistance to change will be great and its execution will be
slow.
First, always redesign the structure whenever you change the strategy or shift to a new lifecycle stage (do this
even if there are no personnel changes).
Second, avoid placing efficiency-based functions such as operations or quality control over effectiveness-
based functions such as R&D, strategy, and training.
Third, avoid giving short range functions like Sales, Operations, and Engineering power over long-range
functions like Marketing, R&D, and People Development.
Fourth, distinguish between the need to decentralize autonomy and centralize control and structure the
organization accordingly.
Finally, avoid placing the wrong style of manager within the new structural role simply because that’s the past
precedent. If the organization is going to thrive, however, the new structure must support the new strategy.
ORGANIZATION CHARTS AND STRUCTURE
A chart that shows the structure of the organization including the title of each manager’s position and, by
means of connecting lines, who is accountable to whom and who has authority for each area. Organizational
chart is a line drawing that shows how the parts of an organization are linked. The organization chart
establishes the following:
– Formal lines of authority—the official power to act
– Responsibility—the duty or assignment
– Accountability—the moral responsibility

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Module I Introduction of Organisational Behaviour

ADVANTAGES DISADVANTAGES
• It provides a quick visual illustration of the • Charts become outdated quickly.
organizational structure.
• Does not relationship. show informal
• It provides help in organizational planning.
• Does not show duties and responsibilities.
• It shows lines of formal authority,
responsibility and accountability. • Poorly prepared charts might create
misleading effects.
• It clarifies who supervises whom and to whom
one is responsible.
• It emphasizes the important aspect of each
position.
• It aids management development and training.
• It is used to evaluate strengths and weakness
of current structure.
• It provides starting points for planning
organizational changes.

TYPES OF ORGANIZATIONAL CHARTS

Vertical charts: It shows high-level management at the top with formal lines of authority down the
hierarchy, are most common.

Horizontal charts: It shows the high-level management at the left with lower positions to the right. Shows
relative length of formal lines of authority, helps simplify understanding the lines of authority and
responsibility.

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Module I Introduction of Organisational Behaviour

Circular charts: It shows the high-level management in the center with successive positions in circles. It
shows the outward flow of formal authority from the high-level management. It reduces status implications.

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Module I Introduction of Organisational Behaviour

Different Types of Organization: There are three main types of organizational structure: functional,
divisional and matrix structure.
Line Organisational Structure: A line organisation has only direct, vertical relationships between different
levels in the firm. There are only line departments-departments directly involved in accomplishing the primary
goal of the organisation. For example, in a typical firm, line departments include production and marketing.
In a line organisation authority follows the chain of command. Is the oldest and simplest of structures? Has
direct authority flowing vertically from the top. Is generally found in small organizations. Because support
staff is needed once they begin to grow. Has an only direct vertical relationship between different levels in the
firm.

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Module I Introduction of Organisational Behaviour
Line and Staff Structure: Line authority means, “The position authority that entitles a manager to direct the
work of operative employees”. Staff authority: Positions that have some authority but that are created to
support, assist, and advise the holders of line authority. Has line authority similar to line structure. Specialized
staff activities are added that support line activities. Staff employees assist the line function. Line and staff
personnel have different functions, goals, cultures and backgrounds. Consequently, they could frequently face
conflict situations. A manager has to use his skills in resolving such conflicts.

An organisation where departments have

authority over line staff personnel in
narrow areas of specialization is known as
functional authority organisation. (i) Line
position:a position in the direct chain of
command that is responsible for the
achievement of an organisation’s goals
and (ii) Staff position:A position intended
to provide expertise, advice and support
for the line positions. The line officers or
managers have the direct authority
(known as line authority) to be exercised
by them to achieve the organisational
goals. The staff officers or managers have
staff authority (i.e., authority to advice the
line) over the line. This is also known as
functional authority. The following figure
illustrates a staff or functional authority
organisational structure.

Tall Vs. Flat Organizations: Tall organizations: more management layers and more hierarchical controls.
Tall organization: an organization in which the hierarchy has many levels relative to the size of the
organization. Flat organization: an organization that has few levels in its hierarchy relative to its size.
Departmentalization: The process through which an organization’s activities are grouped together and
assigned to managers; the organization wide division of work. Functional means the grouping of activities by
functions performed. Functional Departmentalization: A form of organization that groups a company’s
activities around essential functions such as manufacturing, sales, or finance.
Divisional Organisational Structure: Divisional structure typically is used in larger companies that operate
in a wide geographic area or that have separate smaller organizations within the umbrella group to cover
different types of products or market areas. The benefit of this structure is that needs can be met more rapidly
and more specifically; however, communication is inhibited because employees in different divisions are not
working together. Divisional structure is costly because of its size and scope. In this type of structure, the
organisation can have different basis on which departments are formed. They are: Function:

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PROJECT ORGANISATION: Temporary organisation designed to achieve specific results by using teams
of specialists from different functional areas in the organisation.
Importance: Project organisational structure is most valuable when:
• Work is defined by a specific goal and target date for completion.
• Work is unique and unfamiliar to the organisation.
• Work is complex having independent activities and specialized skills are necessary for
accomplishment.
• Work is critical in terms of possible gains or losses.
• Work is not repetitive in nature.
Characteristics of project organisation:
• Personnel are assigned to a project from the existing permanent organisation and are under the
direction and control of the project manager.
• The project manager specifies what effort is needed and when work will be performed whereas the
concerned department manager executes the work using his resources.
• The project manager gets the needed support from production, quality control, engineering etc. for
completion of the project.
• The authority over the project team members is shared by project manager and the respective
functional managers in the permanent organisation.
• The services of the specialists (project team members) are temporarily loaned to the project manager
till the completion of the project.
• There may be conflict between the project manager and the departmental manager on the issue of
exercising authority over team members.
• Since authority relationships are overlapping with possibilities of conflicts, informal relationships
between project manager and departmental managers (functional managers) become more important
than formal prescription of authority.
• Full and free communication is essential among those working on the project.

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Module I Introduction of Organisational Behaviour
Functional organization
Functional organization is a type of organizational structure that uses the principle of specialization based on
function or role. It allows decisions to be decentralized since issues are delegated to specialized persons or
units, leaving them the responsibility of implementing, evaluating, or controlling the given procedures or
goals.

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Matrix Organisational Structure: An organization structure in which employees are permanently attached
to one department but also simultaneously have ongoing assignments in which they report to project, customer,
product, or geographic unit heads. The employee has to work under two authorities (bosses). The authority
of the Functional Manager flows downwards while the authority of the Project Manager flows across
(side wards). So, the authority flows downwards and across. Therefore, it is called "Matrix
Organisation". This can create power struggles because most areas of the company will have a dual
management--a functional manager and a product or divisional manager working at the same level and
covering some of the same 41 managerial territory. It is a permanent organisation designed to achieve specific
results by using teams of specialists from different functional areas in the organisation.

A HYBRID: Many large organizations have divisional structures where each manager can select the best
structure for that particular division. One division may use a functional structure, one geographic, and so on.
This ability to break a large organization into many smaller ones makes it much easier to manage.
NETWORK STRUCTURES: Network structures maintain a staff of core fulltime employees and use
contracted services and strategic alliances to accomplish many business needs.
VIRTUAL STRUCTURE: Virtual organization is defined as being closely coupled upstream with its
suppliers and downstream with its customers such that where one begins and the other ends means little to
those who manage the business processes within the entire organization. A special form of boundaryless
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Module I Introduction of Organisational Behaviour
organization is virtual. The virtual organization exists within a network of alliances, using the Internet. This
means while the core of the organization can be small but still the company can operate globally be a market
leader in its niche. Although none sell in huge numbers, there are so many niche products that collectively
they make a significant profit, and that is what made highly innovative Amazon.com so successful.

Decentralization: The pushing down of decision-making authority to the lowest levels of an organization.
Organizational authority for most departmental decisions is delegated to the department heads. Control for
major companywide decisions is maintained at the headquarters office.
Decentralization Rules
• Decentralize decisions that affect only one division or area and that would take a long time for upper
management to make.
• Centralize decisions that could adversely affect the entire firm and that upper management can fairly
quickly and easily.
Learning
Learning is defined as “any relatively permanent change in behaviour that occurs as a result of experience”.
• It is a continuous process and human beings are always undergoing the process of learning as a result
of their interactions with the environment in which they operate.
• The key component in learning is its outcome i.e. ‘change in behaviour’.
• The change may be positive or negative from the organizational point of view. For instance, people
may learn negative or unfavourable behaviours like resistance and absenteeism as a result of their
experiences, as well as favourable behaviours like increased productivity.
• Whether the outcome is favourable or unfavourable depends on their experiences as well as how they
process them. It is also important for the change that has occurred has to manifest itself in behavioural
modification.
This is supplemented with components of learning:

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Module I Introduction of Organisational Behaviour
1. Learning involves change: a change may be for good or bad. Change may not be evident until a situation
arises in which the new behaviour can occur. Learning is not always reflected in performance.
2.Not all changes reflect learning: to constitute learning, change should be relatively permanent. Temporary
changes may be only reflective and fail to represent any learning. This requirement, therefore, rules out
behavioural changes caused by fatigue or drugs.
3.Learning is reflected in behaviour: a change in an individual’s thought process or attitude, not
accompanied by behaviour, is no learning.
Definition of Learning
In a Layman’s view, “Learning is something we did when we went to school”.
According to Stephen P Robbins or E R Hilgard, Learning is “any relatively permanent change in behaviour
that occurs as a result of experience”.
According to Steers and Porter, Learning can be defined as relatively permanent change in behaviour the
potentiality that results from reinforced practice or experience”.
By analysing the above definition, we can define the term learning as a “all changes in behaviour that result
from prior experience and behaviour in similar situations”.
WHAT DO EMPLOYEES LEARN?
• Practical skills: Job-specific skills, knowledge, technical competence.
• Intrapersonal skills: Self: Problem solving, critical thinking, alternative work processes, risk taking.
• Interpersonal skills: Others: Interactive skills such as communicating, teamwork, conflict resolution.
• Cultural awareness: The social norms of organizations, company goals, business operations,
expectations, and priorities.

NATURE

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Module I Introduction of Organisational Behaviour
1) Change in behaviour: Learning involves change in behaviour, although the change may be good or bad
from an organization’s point of view. The change in behaviour need not be an improvement over the previous
behaviour, although learning improves behaviour. For example: Bad habits like smoking.
2) Change in behaviour must be relatively permanent: All the changes do not reflect learning. To constitute
learning, change should be relatively permanent. Temporary changes may be only reflective and fail to
represent any learning. For example: any temporary adaptations like fatigue or drugs etc are not covered in
learning.
3) Change must be based on some experience, practice or training: The behavioural change may also be
influenced by experience, practice or training. This change may not be evident until a situation arises in which
the new behaviour can occur. For example: any change in Behaviour due to physical maturation, any disease
or physical damages do not constitute learning.
4) Reinforcement: The practice or experience must be reinforced in order for learning to occur. If
reinforcement does not accompany the practice or experience the behaviour will eventually disappear.
5) Learning is reflected in Behaviour: A change in an individual’s thought process or attitudes not
accompanied by behaviour is not learning. Further learning needs to result in behaviour potentially and not
necessarily in the behaviour itself. For example: if a person is thinking of using drugs but has not actually used
them and he finds out that a friend of his has died because drugs, he will never get involved with drugs.
PRINCIPLES OF LEARNING
Learning is a very complex and wide topic. Following are the principles of learning in formal training
situations:
1) Feedback: Learning can be a more effective process when both the instructor and trainee give feedback to
each other. The instructor needs feedback to know how the trainee is progressing and the trainee needs the
feedback to know his level of performance.
2) Active learning: Learning can be more effective and quicker, if the trainee is actively involved in the
learning process.
3) Reinforcement: According to this principle “learning which is rewarded is more likely to be retained.”
This is how learning makes children, students and even pets to learn.
4) Meaningful material: The material supplied to the trainee should be meaningful. He can understand and
learn more, if the material supplied is related to his existing knowledge.
5) Multiple sense learning: The presentation method which makes use of two or more senses are more
effective than using one sense only which means “one picture is worth a thousand words”. Generally, the most
important senses for learning are SIGHT and HEARING.
6) Overloading: If an individual frequently makes attempts to recall the learned material, forgetting is reduced
and the material is memorized in his brain.
7) Primary and recency: This principle states that trainees can recall those things they learn first and last in
sequence. This principle does not hold true in all conditions and sometimes they act against one another. For
example: When the most recent impressions change or blot our first impressions.
TYPES OF LEARNING
1. Observational Learning: Observational learning is learning that occurs through observing the behaviour
of others. Observational learning is a form of social learning where it is concerned with learning by watching

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Module I Introduction of Organisational Behaviour
others is called Observational learning. Observational learning always occurs through attention, retention,
production and motivation. For example:
(1) A child learns to interact with other people by observing their parents;
(2) A newer employee avoids being late to work after seeing a coworker fired for being late.
Benefits of Observational Learning
1) Encourage Social Interactions: People learn numerical, language and social skills through observational
learning. Since it helps to b uild their self-esteem. Also, they become familiar with diverse activities, learning
new ways to have fun.
2) Improves Behaviour: Observational learning often occurs outside the classroom, and parents contribute
to the learning process. Young people tend to imitate the behaviours and language of their peers from infancy,
which help inculcate positive behaviours in them.
3) Expands Knowledge: Observational learning also helps to improves one’s knowledge, through inquisition
and imitation. People become more familiar with their surroundings, which helps to improve skills required
to master other subjects.
4) Enhances Memory: Memory improvement is the primary benefit in people. Imitation and memory go
hand in hand in determining the people’s behaviour. For instance, people retain the information of their
surrounding and then mimic what they see.
2. Reinforcement
Reinforcement is a process of strengthening desirable behaviours, often through the use of rewards.
Reinforcement is the attempt to develop or strengthen desirable behaviour. According to Thorndike, “Of
several responses made to the same situation, those which are accompanied or closely followed by satisfaction
(reinforcement)… will be more likely to recur: those which are accompanied or closely followed by
discomfort (punishment)…will be less likely to occur.” There are two types of reinforcement in organizational
behaviour: positive and negative.

• Positive reinforcement strengthens and enhances behaviour by the presentation of positive

reinforcers. There are primary reinforcers and secondary reinforcers. Primary reinforce satisfy basic
biological needs and include food and water. Where secondary reinforce include such benefits as
money, status, grades, trophies and praise from others.
• Negative reinforcement, an unpleasant event that precedes a behaviour is removed when the desired
behaviour occurs. For example, Supervisors apply negative reinforcement when they stop criticizing
employees whose poor performance has improved.
• Punishment: Punishment is an undesirable consequence an employee receives for bad behaviour. This
can involve actions like demoting the employee or suspending the employee.
• Extinction: Extinction is the elimination of a behaviour. This type of behaviour modification should
be reserved for the most damaging behaviours. For example, a manager usually criticises his

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Module I Introduction of Organisational Behaviour
subordinates for not achieving their targets. The employees will achieve their targets to avoid the
criticism.
Benefits of Reinforcement
1) Increases Behaviour: Reinforcement is one of the easiest and quickest ways to improve employee
happiness and effectiveness. Increased self-confidence and esteem by continuous reinforcement, inspires
people to do their best work, develop new skills and enabling them to make a dramatic and lasting impact on
the organization.
2) Sustain Change: Reinforcement creates changes into organizations. Reinforcing behavior may help
workforce to adopt and sustain the right behaviours saving time and money and improving the probability of
success. More positive application of reinforcement should also get the credit for flexible work schedules,
fulfilling job design, or creative compensation practices.
3) Gives a path to correct errors: Every organization is confronted with errors. Organizations often focus
on error prevention as a single strategy for dealing with errors. Error prevention needs to be supplemented by
reinforcement techniques, an approach directed at effectively dealing with errors after they have occurred,
with the goal of minimizing negative and maximizing positive error consequences.
4) Achieve perfection: Reinforcement correlated with positive affect and was interpreted as reflecting the
positive aspects of perfectionism that boosts self-oriented and social oriented perfectionism.
3. Cognitive Learning: Cognitive Learning is a type of learning that is active, constructive, and long-lasting.
It engages students in the learning processes, teaching them to use their brains more effectively to make
connections when learning new things.
Comprehension, Application and Memory are the basic factors that influences cognitive learning.
In other words, the cognitive learning process aims to chart the learning process for optimal thinking,
understanding and retention of what we learn.
Benefits of Cognitive Learning:
1) Enhance Comprehension: In cognitive learning, people learn by doing. This handson approach makes the
learning immersive and promotes comprehension. Thus, one can develop a deeper understanding of the
material and its application to your work and life.
2) Improve Problem Solving Skills: Problem solving skills are critical at any level of leadership. The
cognitive learning approach enhances your ability to develop this core skill and helps them to apply it to every
aspect of their job.
3) Boosts Confidence: Cognitive learning can also improve confidence in one’s ability to handle challenges
at work. This is because it promotes problem solving skills and makes it easier to learn new things within a
short period.
4) Encourages Continuous Learning: Cognitive skills promote long term learning as it allows you to connect
previous knowledge with new materials. It helps you merge old and new information and apply both
effectively.
4. Self-Directed Learning: Learning that occurs when learners explore, question, react, and respond to
learning material relevant to their needs. Also known as self-concept or self-initiated learning.
Self-directed learning describes a process in which individuals take the initiative, with or without the help of
others, in diagnosing their learning needs, formulating learning goals, identifying human and material
resources appropriate learning.

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Module I Introduction of Organisational Behaviour
Benefits of Self-Directed Learning:
1) Support learning through trails and error: It helps people to make space to take risks and feel the impact
of what happens when those risks don’t work out. Ask them to reflect on both their wins and challenges so
that their risks become more calculated over time.
2) Value System: Self-directed learning enables individuals to improve their self-confidence, motivation and
lifelong learning skills based on value system. It is also aimed to reveal the relationship between self-directed
learning skills and lifelong learning tendencies.
3) Intrinsic Motivation: We are connected to our intrinsic motivation when we are inspired to achieve a goal
because it is meaningful to us. Sometimes a people knows right away when something is personally
meaningful. For others, it takes a while.
4) Inspires a love of learning: A life lived with a love of learning is beautiful and complex. There is a sense
of freedom that comes along with that realization. When we control a people’s learning, we can end up robbing
them of that realization.
5. Experimental Learning: Experiential learning is a method of educating through firsthand experience. For
Example: internships, studies abroad, field trips, field research, and service-learning projects. In other words,
it is a process whereby knowledge is created through the transformation of experience. Knowledge results
from the combinations of grasping and transforming the experience.
Benefits of Experimental Learning:
1) Links theory to Practice: People have the chance to engage in the experience and practice what they have
learned, see the application of the theoretical concepts in practice, process that application and make
generalizations.
2) Increase Engagement: By encouraging collaboration and scaffolding between learners it increases people
involvement.
3) Leads to development of Skills: By assisting in the acquisition of essential skills and encouraging people
to reflect, conceptualize, and plan for next steps.
4) Assist memory retention: By building strong relationships between feelings and thinking processes.
people have the capacity to learn successfully when the information is associated with values and feelings.
Factors Affecting Learning
Motivation − the encouragement, the support one gets to complete a task, to achieve a goal is known as
motivation. It is a very important aspect of learning as it acts gives us a positive energy to complete a task.
Example − the coach motivated the players to win the match.
Practice − we all know that “Practice makes us perfect”. In order to be a perfectionist or at least complete the
task, it is very important to practice what we have learnt. Example − we can be a programmer only when we
execute the codes we have written.
Environment − we learn from our surroundings; we learn from the people around us. They are of two types
of environments – internal and external. Example − A child when at home learns from the family which is an
internal environment, but when sent to school it is an external environment.
Mental group − It describes our thinking by the group of people we chose to hang out with. In simple words,
we make a group of those people with whom we connect. It can be for a social cause where people with the
same mentality work in the same direction. Example− A group of readers, travellers etc.

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Module I Introduction of Organisational Behaviour
Schedules of Learning: Reinforcement does not always follow a particular response. An employee, who
always finishes his assignment on time, sometimes receives recognition and appreciation and sometimes is
ignored. Schedules of reinforcement refer to the pattern or timing of administering the reinforcers for the
desired behaviour. Schedules of reinforcement are of two types: Continuous and partial.
Continuous schedule: Continuous schedule reinforces the desired behaviour every time it is displayed. The
reinforcement is immediate.
Partial schedule: In partial or intermittent schedule, the behaviour is not reinforced every time it is displayed
but, reinforcement is often enough to make the behaviour worth repeating. Partial reinforcement can also be
classified into four categories based on timing and pattern of reinforcement.
i. Fixed interval schedule: When reinforcement is given at fixed time intervals.
ii. Variable interval schedule: When reinforcement is given at variable times. In other words,
reinforcement is given at random times so that nobody can predict the timing of reinforcement.
iii. Fixed ratio schedule: In this method, reward is given after the fixed number of desired responses is
displayed by the employee.
iv. Variable ratio schedule: In this method, rewards are offered after variable amount of desired
responses.

LEARNING
In this section, we will discuss the definition and meaning of learning, the different theories of learning and
how the theory of learning can be used in managing employee behaviour in organizations. Learning is defined
as “any relatively permanent change in behaviour that occurs as a result of experience”. It is a continuous
process and human beings are always undergoing the process of learning as a result of their interactions with
the environment in which they operate. The key component in learning is its outcome i.e. ‘change in
behaviour’. The change may be positive or negative from the organizational point of view. For instance, people
may learn negative or unfavourable behaviours like resistance and absenteeism as a result of their experiences,
as well as favourable behaviours like increased productivity. Whether the outcome is favourable or
unfavourable depends on their experiences as well as how they process them. It is also important for the
change that has occurred has to manifest itself in behavioural modification. That is, learning has to be
accompanied by a change in actions. Any change than occurs in people’s thought processes or attitudes does
not constitute learning unless it is accompanied by change in behaviour. The change in behaviour has to be an
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Module I Introduction of Organisational Behaviour
outcome of experience. Experience may be acquired directly, through observation or practice, or indirectly
through reading or listening to another person’s experience. Finally, the change that has occurred has to be
relatively permanent to understand that learning has taken place. A temporary change in behaviour as a result
of tiredness of any other factor does not constitute learning. To state briefly, one can consider that learning has
taken place, when there is a change in a person’s behaviour as a result of his/her experiences and when the
change manifests itself in the form of relatively permanent behavioural modification.
THEORIES OF LEARNING
The theories of learning explain the processes by which people can acquire patterns of behaviour and can be
classified under three main heads. These are Behaviouristic Theories (including classical conditioning and
operant conditioning), Cognitive Theories and the Social Learning Theory.
Behaviouristic Theories
Behavioristic theories or Behaviorism constitute the traditional theories of learning. These theories were
propounded by Ivan Pavlov and John B. Watson. The behaviorists attribute learning to the association between
stimulus and response. Behavioristic theories are also called the connectionist theories of learning because of
their emphasis on the connection between the stimulus and the response. They mainly deal with the role played
by conditioning in the process of learning.
Classical Conditioning: The theory of classical conditioning grew out of the experiments conducted by
Russian physiologist Ivan Pavlov. As a part of the experiment, Pavlov performed a simple surgical procedure
on a dog, which allowed him to accurately measure the amount of saliva it secreted. When Pavlov presented
the dog with meat, the dog showed a significant increase in salivation. At the next stage, he rang a bell without
offering any meat, and the dog showed no change in the amount of saliva secreted. Then Pavlov proceeded to
ringing the bell while presenting the meat to the dog. After sometime, the dog started showing an increase in
the saliva secreted simply on hearing the bell, even without the meat being presented. This indicated that the
dog had become classically conditioned to associate the ringing of the bell with meat, and respond to it.
Learning in Organizations.
In terms of the theory, the meat was an unconditioned stimulus and the salivation was an unconditioned
response. Whenever the dog was offered the meat it responded by salivating. The bell was a conditioned
stimulus. It had no connection to the response by itself initially, but after being associated with the
unconditioned stimulus, that is the presentation of meat, it eventually caused the dog to salivate even when it
was presented alone. The last concept is called conditional response. Thus, classical conditioning can be
defined as a “type of conditioning in which an individual responds to some stimulus that would not ordinarily
produce such a response.” It is a process in which a formerly neutral stimulus, when paired with an
unconditioned stimulus, becomes a conditioned stimulus that elicits a conditioned response. It describes the
link between a stimulus and a response (S – R). Classical conditioning can sometimes be observed even within
the organizational context. For example, whenever the top management is going to visit a factory, the factory
is cleaned up and the employees are expected to come to work, dressed neatly. It is sometimes observed that
the employees come to work dressed neatly whenever the factory is cleaned even if the top management is
not due to visit. In this case, the cleaning of the factory is a conditioned stimulus and the dressing of the
employees is the conditioned response.
Classical conditioning has been criticized as being passive. It only represents a very small part of human
learning and is highly dependent on being offered a stimulus. In other words, it only deals with unlearned or
automatic reactions or reflexive behavior; whereas most experts agree that human behavior is much more
complex. This led to the emergence of operant conditioning.

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Operant Conditioning
Operant conditioning differs from classical conditioning as it deals with voluntary or learned behavior as
against reflexive or unlearned behavior. Proponents of operant conditioning like B.F Skinner argue that people
learn to behave in a certain way in order to get something they want or to avoid something they do not want.
Operant conditioning may be defined as a “type of conditioning in which desired voluntary behavior leads to
a reward or prevents a punishment.” According to Skinner, creating pleasant consequences to follow a certain
types of behavior would increase the frequency of that behavior. On the other hand, a negative consequence
of a behavior would discourage the person from repeating that behavior. Basically, the main aspect in which
operant conditioning differs from classical conditioning is that, in classical conditioning, the stimulus is
controlled to result in a certain response. But in operant conditioning, the stimulus situation does not elicit the
response but acts as a cue for a person to emit a certain response. The main factor in operant conditioning is
what happens as a result of the response. For example, in an organization, if a person is rewarded for higher
productivity, the person will be encouraged to work harder to increase his/her productivity. The person who
associates working harder with getting a reward, and this is a learned behavior. In this case, working harder is
the response and the reward is the stimulus (R–S). Similarly, if a person is penalized for coming late to office,
the person would try to avoid being late in future. Thus, operant conditioning has great significance in
managing human behavior in an organizational context. It helps managers to identify ways to encourage
positive behavior in employees and discourage negative behavior.
Thorndike’s Law of effect: Thorndike’s law of effect stated that. “Of several responses made to the same
situation, those which are accompanied or closely followed by satisfaction (reinforcement)- will be more likely
to recur, those which are accompanied by or more closely followed by discomfort (punishment)- will be less
likely to recur.” Thorndike in U.S worked on cats, chicks and dogs to understand the learning process. He
placed his animals in a ‘puzzle box’ from which they were required to escape. In order to escape from the box
they were required to press the correct liver or pulley. Through ‘trial and error’, animals eventually learned to
press the correct pulley. He explained that response is more important than stimulus in the process of learning.

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Module I Introduction of Organisational Behaviour

COGNITIVE THEORY So far the kinds of learning that have been studied were regarding the organization
of behavior into learned stimulus-response associations. This organization of behavior is a very simple form
of learning, but for more complex form of learning, we must consider the roles of perception and knowledge,
or cognitive processes. Those who have been identified with cognitive viewpoint argue that learning
particularly in humans, cannot be fully explained in terms of stimulus response associations. They proposed
that the learner forms cognitive structure in memory, which preserves and organizes the information from
various events that occur in a learning situation. When some information is presented to the individual, s/he
must encode the stimulus and scan it against his/her memory to determine an appropriate action. What
response will be given will depend upon the cognitive structure retrieved from memory and the context in
which the stimulus occurred. Thus, the individual’s response is a decision process that varies with the nature
of the situation and the person’s memory for prior events.
• Insight Experiments Learning in Organizations Wolfgang Kohler (1925) performed a series of
experiments with chimpanzees. At some point of working at a problem, the chimpanzees grasped its
inner relationship through insight, i.e. they solved the problem not through mere trial and error learning
but by perceiving the relationships that are essential for problem solving. Kohler conducted an
experiment on his most intelligent chimpanzee: Sultan. The chimpanzee was kept in a cage and some
fruits were kept outside the cage. There was a short stick lying in the cage but he could not reach the
fruits with it. There was a longer stick outside the cage which could not be reached by its hand but can
be pulled within reach by means of the small stick. Sultan tried to reach the fruit once more with the
help of the small stick but as it cannot reach, it looked around and suddenly picked up the small stick
once more and tried to reach for the longer stick and pulled it towards itself and with the help of this
stick, it got the fruit. On observing the complete process, it is seen that the moment Sultan’s eyes fell
on the long stick, his thought process formed one consecutive whole and it is seen that the solution
appeared to him quite suddenly, in an interval of hesitation and doubt and undoubtedly had a relation
to the final objective and the attainment of the end goal. Thus, this study demonstrates as to how insight
occurs. A moderate degree of insight is common in ‘human beings and we tend to take it for granted
with the occurrence of insight, we find solution of a problem as though a light had been turned on in
the darkness which is appropriately called the ‘aha’ feeling experience’. This experience usually comes
with solving puzzles or riddles. The variables that influence insight learning have some general
principles. Insight depends upon the arrangement of the problem situation i.e. the problem situation
should be perceived completely or as a whole. If this situation is not completely available at one time,
it would be difficult to obtain a solution. Human beings can rearrange the problem mentally; they can
form mental images of the situation and rearrange objects in that image in an attempt to find a solution.
Mental manipulations go on preconsciously and only when a solution is found, the person will realize
that s/he had been thinking about the problem. Once a solution occurs with subject, it can be repeated
promptly. Gradual solution appears to be the rule in trial and error learning. Sudden solution is the rule
of insight. When some solutions appear through insight there is a possibility that these solutions appear
on other similar occasions. A solution achieved with insight can be applied in new situations. Since
what is learned in the insight experiment is at cognitive relationship between means and an end the
solution can appear even when the objects or tools get substituted. An effective learner is a resourceful,
adaptable person, able to use what s/he knows in new situation and has potentials to discuss solutions
to problems that s/he has never faced before. Therefore emphas are upon insightful learning rather than
on rote learning or on mechanical skills that encourage such problem solving behavior.
• Sign Learning: Edward. C. Tolman (1948) believed that much of the learning is sign learning i.e.
‘what leads to what’. He used a rat to run a maze and found that the rat developed a kind of map or
cognitive structure, of the maze instead of learning merely a sequence of left and right turns. If a
familiar path is blocked, the animal can adopt another route based on this understanding of spatial

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Module I Introduction of Organisational Behaviour
relationships. Thus sign learning may be defined as ‘an acquired expectation that one stimulus will be
followed by another in a particular context’. That is, one response may be readily substituted for
another, provided both lead to the same end point where the expected stimulus will be encountered.
Thus, a rat that has learned to run on a maze to obtain food in the goal box will, if the maze is flooded
with water, swim without error to the goal. The rat appears to have learned the location of the goal
rather than a chain of specific stimulus response connections. Because what is learned is a set of
expectation or a cognitive map of the environment rather than a specific response. Thus, sign learning
classifies itself as learning with understanding rather than as conditioning.
• Latent Learning: It refers to learning that is not evidenced by behavior at the time of the learning.
Typically, such learning gets in to hidden mode due to low levels of drive on in the absence of reward.
When drive is heightened or appropriate reinforcement appears, there is a sudden use of what has been
previously learned. In theorizing about how rewards and punishments influence behavior Tolman
distinguished between learning and performance. In the latent learning study, the rat learned something
about the spatial arrangement of the maze, but this learning was not evidenced in performance until
reward motivated the animal to perform. Tolman maintains that for learning reward and punishment
serve to convey information, to teach “what leads to what” they do not ‘stamp in’ specific responses
and eliminate others. In performance, on the other hand, rewards and punishments function to
determine possible responses, the subject decides to use. The response with the greatest expectation of
reward will be made more quickly and efficiently.
SOCIAL LEARNING THEORY
The social learning theory states that people learn not only from their own experiences, but also from observing
what happens to other people and even just by being told about something. It is an extension of the operant
conditioning theory and subscribes to the idea that behavior is a function of consequence. However, it goes
beyond operant conditioning by recognizing the role of perception in learning. According to the social learning
theory, people learn not only from the actual consequences that they have experienced in response to their
behavior, but also from what they perceive the consequences might be if they behave in a certain way. For
instance, if a person sees his co-worker being rewarded for good behavior, s/he will learn to adopt the same
behavior himself/ herself to attain the consequence, which is the reward. The role of models are very important
in social learning as people learn from observing the model. There are four aspects to social learning:
• Attention Processes: People learn from a model only when the model manages to capture their
attention. People usually learn from models that are attractive, are similar to them or operating in a
similar situation as they are, or are repeatedly available.
• Retention Processes: The model’s influence on a person determines how well the person retains what
s/he has learnt even when the model is no longer in front of him.
• Motor Reproduction Processes: After the person observes a new behavior from the model, the
behavior must then be implemented. This shows efficacy of what has been learnt.
• Reinforcement Processes: Learning in Organizations People will be motivated to repeatedly exhibit
the modelled behavior if they are rewarded for it. Therefore, behaviors that receive positive
reinforcement will be learnt better and repeated.

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Module I Introduction of Organisational Behaviour

Principles of Learning Principles of learning help the managers gain maximum efficiency in a learning
situation. However, blind observance to these principles can cause damaging effects than the gain. Therefore,
each principle should be carefully interpreted and applied after considering the nature of task being learned
and the context in which it is being learned. Some important principles of learning are explained as below:
• Motivation: Without motivation learning cannot take place. Motivation is the basic principle of
learning. Motivation can be seen at different levels of complexity in different situations. In an
experiment conducted by Edward Tolman, the hungry rat learnt the path through a complex maze to
the food. In the experiment conducted by Thorndike, desire to escape from the puzzle box motivated
the animals to learn the way to escape from the box.
• Knowledge of Results: It is a common fact that knowledge of one’s own performance is essential for
learning. Feedback of the performance stimulates the individual to take corrective action if there is any
deviation in his performance.
• Reinforcement: Reinforcement is the most important principle of learning. Reinforcement can be
defined as anything that both increases the strength of response and tends to induce repetitions of the
behaviour that preceded the reinforcement. In simple words, reinforcement refers to the consequences
of behaviour. Reinforcement is external environment based. It is described as external environmental
events that follow a response. There are four basic forms of reinforcement viz. positive reinforcement,
avoidance, punishment and extinction.
a. Positive reinforcement: Positive reinforcement strengthens and increases the behaviour by
offering desirable consequences. In simple words, positive reinforcement is the reward for a
desired behaviour. The reward should be such that which stimulates individual’s desired
behaviour. For example, if an employee performs extremely well in the organisation and
receives awards for the same, the probability of repeating the same behaviour will increase.
b. Avoidance: It is also known as negative reinforcement. It is another alternative of increasing
the desired behaviour. In this, instead of associating a reward with the desired behaviour, the
individual gets an opportunity to avoid the punishment by displaying the desired behaviour.
For example, a manager usually criticises his subordinates for not achieving their targets. The
employees will achieve their targets to avoid the criticism.
Dr. Khushnuma Bano
Module I Introduction of Organisational Behaviour
c. Extinction: Whereas positive reinforcement and negative reinforcement are the ways to
increase the occurrence of desired behaviour, extinction refers to decreasing the frequency of
undesirable behaviour. When the rewards are withdrawn from the behaviours which were
earlier associated with the rewards, frequency of such behaviours will tend to decrease or
eventually extinct.
d. Punishment: It is also used to decrease the occurrence of undesired behaviour. Punishment
refers to the presentation of an unpleasant or an aversive consequence of undesirable behaviour.
For example, in an organisation written warnings, pay cuts or terminations are given for the
undesirable behaviours like theft, financial embezzlement, damaging the property and coming
late consistently etc.
Schedules of Learning: Reinforcement does not always follow a particular response. An employee, who
always finishes his assignment on time, sometimes receives recognition and appreciation and sometimes is
ignored. Schedules of reinforcement refer to the pattern or timing of administering the reinforcers for the
desired behaviour. Schedules of reinforcement are of two types: Continuous and partial.
• Continuous schedule: Continuous schedule reinforces the desired behaviour every time it is displayed. The
reinforcement is immediate.
• Partial schedule: In partial or intermittent schedule, the behaviour is not reinforced every time it is displayed
but, reinforcement is often enough to make the behaviour worth repeating. Partial reinforcement can also be
classified into four categories based on timing and pattern of reinforcement.
• Fixed interval schedule: When reinforcement is given at fixed time intervals.
• Variable interval schedule: When reinforcement is given at variable times. In other words,
reinforcement is given at random times so that nobody can predict the timing of reinforcement.
• Fixed ratio schedule: In this method, reward is given after the fixed number of desired responses is
displayed by the employee.
• Variable ratio schedule: In this method, rewards are offered after variable amount of desired
responses.

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Dr. Khushnuma Bano