Unit-1 Organizational Behavior - Introduction
Organizational Behavior (OB) can be defined as the understanding, prediction and management of human behavior both individually or o r in a group that occur within an organization. Internal and external perspectives are the two theories of how organizational behavior can be viewed from an organizations point of view. In this tutorial, we will be learning in detail about both the theories.
Importance of OB !hile wor"ing in an organization, it is very important to understand others behavior as well as ma"e others understand understand ours. In order to maintain maintain a healthy healthy wor"ing wor"ing environment, environment, we need to adapt to the environment and understand the goals we need to achieve. #his can be done easily if we understand the importance of OB. $ollowing points bring out the importance of OB %
It helps in explaining the interpersonal relationships employees share with each other as well as with their higher and lower subordinates.
#he prediction of individual behavior can be explained.
It bala balanc nces es the the cord cordia iall rela relati tion onsh ship ip in an ente enterp rpri rise se by main mainta tain inin ing g effe effect ctiv ivee communication.
It assists in mar"eting.
It helps managers to encourage their sub&ordinates.
'ny change within the organization can be made easier.
It helps in predicting human behavior their application to achieve organizational goals.
It helps in ma"ing the organization more effective.
#hus studying organizational behavior helps in recognizing the patterns of human behavior and in turn throw light on how these patterns profoundly influence the performance of an organization.
Organizational Behavior - Determinants #here are three maor factors that affect OB. #he wor"ing environment being the base for all three factors, they are also "nown as the determinants of OB. #he three determinants are %
*eople
+tructure
#echnology
*eople 'n organization consists of people with different traits, personality, s"ills, ualities, interests, bac"ground, beliefs, values and intelligence. In order to maintain a healthy environment, all the employees should be treated eually and be udged according to their wor" and other aspects that affects the firm. Example % ' company offers campus placement to trainees from different states li"e Orissa,
-aryana, 'runachal *radesh and many more. -owever, during and after training, all trainees are examined only on the basis of their performance in the tas"s assigned.
Organizational +tructure +tructure is the layout design of an organization. It is the construction and arrangement of relationships, strategies according to the organizational goal. Example % Organizational structure defines the relation of a manager with employees and co&
wor"ers. #echnology #echnology can be defined as the implementation of scientific "nowledge for practical usage. It also provides the resources reuired by the peo ple that affect their wor" and tas" performance in the right direction. Example % Introduction of +'*, big data and other software in the mar"et determines
individual and organizational performance. nvironment 'll companies function within a given internal and external environment. Internal environment can be defined as the conditions, factors, and elements within an enterprise that influences the activities, choices made by the firm, and especially the behavior of the employees. !hile external environment can be defined as outside factors that affect the company/s ability to operate. +ome of them can be manipulated by the companys mar"eting, while others reuire the company to ma"e adustments. +ome examples of internal environment include employee morale, culture changes, financial changes or issues, and some examples of external environment include political factors, changes to the economy and the company itself.
Organizational Behavior - Concepts #he concept of OB is based on two "ey elements namely %
0ature of people
0ature of the organization
0ature of *eople In simple words, nature of people is the basic ualities of a person, or the character that personifies an individual they can be similar or uniue. #al"ing at the organizational level, some maor factors affecting the nature of people have been highlighted. #hey are %
Individual Difference % It is the managerial approach towards each employee
individually, that is one&on&one approach and not the statistical approach, that is, avoidance of single rule. Example % 1anager should not be biased towards any particular employee rather should treat them eually and try not to udge anyone on any other factor apart from their wor".
Perception % It is a uniue ability to observe, listen and conclude something. It is
believing in our senses. In short, the way we interpret things and have our point of view is our perception. Example % 'man thin"s late night parties spoil youth while 'nami"a thin"s late night parties are a way of ma"ing new friends. -ere we see both 'man and 'nami"a have different perception about the same thing.
!hole person % 's we all "now that a persons s"ill or brain cannot be employed we
have to employee a whole person. +"ill comes from bac"ground and "nowledge. Our personal life cannot be totally separated from our wor" life, ust li"e emotional conditions are not separable from physical conditions. +o, people function is the functioning of a total human being not a specific feature of human being.
"otivated #ehavior % It is the behavior implanted or caused by some motivation from
some person, group or even a situation. In an organization, we can see two different types of motivated employees % o
Positive motivation % ncouraging others to change their behavior or say
complete a tas" by luring them with promotions or any other profits. xample % 2If you complete this, you will gain this.3 o
$egative motivation % $orcing or warning others to change their behavior else
there can be serious conseuences. xample % 2If you dont complete this, you will be deprived from the office.3
%alue of person % mployees want to be valued and appreciated for their s"ills and
abilities followed by opportunities which help them develop themselves. 0ature of Organization 0ature of organization states the motive of the firm. It is the opportunities it provides in the global mar"et. It also defines the employees standard4 in short, it defines the character of the company by acting as a mirror reflection of the company. !e can understand the nature of any firm with its social system, the mutual interest it shares and the wor" ethics. 5et us ta"e a uic" loo" at all these factors %
&ocial s'stem % very organization socializes with other firms, their customers, or
simply the outer world, and all of its employees & their own social roles and status. #heir behavior is mainly influenced by their group as well as individual drives. +ocial system are of two types namely % o
(ormal % 6roups formed by people wor"ing together in a firm or people that
belong to the same club is considered as formal social s'stem . Example % ' success party after getting a proect. o
Informal % ' group of friends, people socializing with others freely, enoying,
partying or chilling. Example % Birthday party.
"utual interest % very organization needs people and people need organizations to
survive and prosper. Basically its a mutual understanding between the organization and the employees that helps both reach their respective obectives. Example % !e deposit our money in the ban", in return the ban" gives us loan, interest, etc.
Ethics % #hey are the moral principles of an individual, group, and organization. In order
to attract and "eep valuable employees, ethical treatment is necessary and some moral standards need to be set. In fact, companies are now establishing code of ethics training reward for notable ethical behavior.
Organizational Behavior - &cope
In a very broad sense, the scope of OB is the extent to which it can govern or influence the operations of an organization. #he scope of OB integrates 7 concepts respectively % Individual Behavior It is the study of individuals personality, learning, attitudes, motivation, and ob satisfaction. In this study, we interact with others in order to study about them and ma"e our perception about them. Example % #he personal interview round is conducted to interact with candidates to chec" their
s"ills, apart from those mentioned in the resume. Inter&individual Behavior It is the study conducted through communication between the employees among themselves as well as their subordinates, understanding peoples leadership ualities, group dynamics, group conflicts, power and politics. Example % ' meeting to decide list of new board members.
6roup Behavior 6roup behavior studies the formation of organization, structure of organization and effectiveness of organization. #he group efforts made towards the achievement of organizations goal is group behavior. In short, it is the way how a group behaves. Example % +tri"e, rally etc.
Organizational Behavior - "odels Organizational behavior reflects the behavior of the people and management all together, it is considered as field study not ust a discipline. ' discipline is an accepted science that is based upon theoretical foundation, whereas OB is an inter&disciplinary approach where "nowledge from different disciplines li"e psychology, sociology, anthropology, etc. are included. It is used to solve organizational problems, especially those related to human beings. #here are four different types of models in OB. !e will throw some light on each of these four models.
utocratic "odel
#he root level of this model is power with a managerial orientation of authority. #he employees in this model are oriented towards obedience and discipline. #hey are dependent on their boss. #he employee reuirement that is met is subsistence. #he performance result is less. #he maor drawbac"s of this model are people are easily frustrated, insecurity, dependency on the superiors, minimum performance because of minimum wage. Custodial "odel
#he root level of this model is economic resources with a managerial orientation of money. #he employees in this model are oriented towards security and benefits provided to them. #hey are dependent on the organization. #he employee reuirement that is met is security. #his model is adapted by firms having high resources as the name suggest. It is dependent on economic resources. #his approach directs to depend on firm rather than on manager or boss. #hey give passive cooperation as they are satisfied but not strongly encouraged. &upportive "odel
#he root level of this model is leadership with a managerial orientation of support. #he employees in this model are oriented towards their ob performance and participation. #he employee reuirement that is met is status and recognition. #he performance result is awa"ened drives. #his model is dependent on leadership strive. It gives a climate to help employees grow and accomplish the ob in the interest of the organization. 1anagement ob is to assist the employees ob performance. mployees feel a sense of participation. Collegial "odel
#he root level of this model is partnership with a managerial orientation of teamwor". #he employees in this model are oriented towards responsible behavior and self&discipline. #he employee reuirement that is met is self&actualization. #he performance result is moderate zeal. #his is an extension of supportive model. #he team wor" approach is adapted for this model. +elf&discipline is maintained. !or"ers feel an obligation to uphold uality standard for the better image of the company. ' sense of 2accept3 and 2respect3 is seen.
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#here are several trends in Organizational Behavior. One trend is globalization. 6lobalization reuires corporate decision ma"ers to be more sensitive to cultural differences as they venture towards a wider variety of employees and clients. 'nother trend in organizations is the increasingly diverse wor"force. 8iversity potentially improves decision&ma"ing, team performance, and customer service, but it also presents new challenges for the company. #he values and ethics of the employees, enable organizations to apply certain principles in a global environment, and are under pressure to abide by the ethical values and higher standards of corporate social responsibility. *eriodically throughout an organization/s life, leaders refine the purpose and direction of their organization/s trends according to9based on what the current needs are. In considering their organization/s mission and vision, managers usually use information about the organization/s performance and trends in the business environment (mar"et shifts, changes in customer needs, advances in technology, demographic patterns, new government regulations) to guide their way of thin"ing that is more in line with current trends.
"$*I$* CU+U) DI%E)&I+0
:ultural diversity is a form of appreciating the differences in individuals. #he differences can be based on gender, age, sex, ethnicity, sexual orientation, and social status. :ompanies have realized the value in acuiring a diverse wor"force. :ultural 8iversity 8efinition :ransport is an aviation company that manufactures airplanes. #he reason for the company/s success has to do with their employees. :ransport depends on wor"er diversity to bring the aircraft to fruition. Diversit' consists of all the different factors that ma"e up an individual, including age, gender, culture, religion, personality, social status and sexual orientation. Cultural diversit' (also "nown as multiculturalism ) is a group of diverse individuals from different cultures or societies. ;sually, cultural diversity ta"es into account language, religion, race, sexual orientation, gender, age and ethnicity. :ompanies started to embrace corporate diversity in the early <===s. #his was due to many trends in demographics and a changing wor"force.
Cultural Diversit' +rends
>. The growth of a minority workforce. #oday/s wor"force is made up of a very diverse population of individuals from every part of the world, which creates dynamic multiracial and multicultural organizations. +uch diversity brings with it many differences in s"ills, abilities and experiences <. The second trend is a growth of stereotyping and prejudices. #his can be hard to avoid when so many different cultures come together in a wor" environment. 7. Another trend companies are embracing is the addition of sensitivity or diversity training . #his type of training educates all employees abo ut cultural differences so that they can understand and appreciate each other. #he purpose of sensitivit' training is to teach employees how to properly act and communicate in a corporate environment. #opics covered in a sensitivity training session will include learning proper etiuette, appropriate terminology, improvement of communication s"ills, anti&bullying management styles and how to eliminate sexual harassment within a company.. ?. The fourth trend is a large increase of females in the workforce. In fact, over the past few decades, women/s participation in the wor"force has grown dramatically to account for almost half of the labor force
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Perceptual Process Perceptual process are the different stages of perception we go through. The different stages are −
Receiving
Selecting
Organizing
Interpreting
Receiving Receiving is the first and most important stage in the process of perception. It is the initial stage in which a person collects all information and receives the information through the sense organs.
Selecting Selecting is the second stage in the process. Here a person doesn’t receive the data randoml !ut selectivel. " person selects some information out of all in accordance with his interest or needs. The selection of data is dominated ! various e#ternal and internal factors.
External factors −
individual
The factors that influence the perception of an
e#ternall
are
intensit$
size$
contrast$
movement$
repetition$ familiarit$ and novelt.
Internal factors −
individual
The factors that influence the perception of an
internall
are
pschological
re%uirements$
learning$
!ac&ground$ e#perience$ self'acceptance$ and interest.
Organizing (eeping things in order or sa in a snchronized wa is organizing. In order to ma&e sense of the data received$ it is important to organize them. )e can organize the data ! −
*rouping them on the !asis of their similarit$ pro#imit$ closure$ continuit.
+sta!lishing a figure ground is the !asic process in perception. Here ! figure we mean what is &ept as main focus and ! ground we mean !ac&ground stimuli$ which are not given attention.
Perceptual constanc that is the tendenc to sta!ilize perception so that conte#tual changes don’t affect them.
Interpreting ,inall$ we have the process of interpreting which means forming an idea a!out
a
particular
o!-ect
depending
upon
the
need
or
interest.
Interpretation means that the information we have sensed and organized$ is finall given a meaning ! turning it into something that can !e categorized. It includes stereotping$ halo effect etc.