BIITM/Semester I/OB/Module I/AC
MODULE - I
Definition of organizational behavior :
According to Luthans “OB is directly concerned with the understanding
prediction and control of human behavior in organizations.
Davis and Newstrom have defined OB as “The study and application of
knowledge how people act or behave within organization. It is a human tool
for human benefit. It applies broadly to the behavior of people in all types of
organizations such as business, Govt. schools and service organizations.
According to Robbins, “OB is a field of study that investigates the impact that
individuals, groups, and structure have on behavior within organs. For the
purpose of applying such knowledge towards improving an organisation’s
effectiveness.
In brief, what OB studies is three determinants of behavior in organs,
individuals, groups and structures.
Key Elements of OB :
OB is based on certain key elements also called, “Fundamental Concepts of
assumptions”.
Four elements of OB are: People, structure, technology, and the environment.
I. People :
Organizations are run by people and these people consist of individuals and
groups.
Though people have much in common, yet they differ from each other. One
can find glaring differences in people’s trait, intelligence, personality or any
such trait.
Therefore, manager has to treat employees with individual differences
differently. The subject matter of OB begins with individual.
As an individual joins organization alone with his / her social background, like
and dislikes, pride & prejudices, OB studies an individual as a whole person.
Human behavior is always caused. Behavior is directed towards some goals.
There is always a cause behind every human behavior or act.
E.G. – When a worker is absent from work, there is a cause behind. The
manager must know the cause to solve the problem.
2. Structure :
Organizations are social systems. Two types of social systems that exist side by
side in an organization are formal and other is the informal social system.
The formal relationship of people in organizations is called structure.
Different jobs are required to accomplish the organizational goals and
objectives.
People such as managers and employees, accountant and assemblers who are
performing different jobs at different levels have to be related in some
structural way so that their work can be effectively coordinated.
1
, It means that OB is based on mutuality of interest. It is mutual interest that
units, people and organization go side by side for accomplishing individual and
organizational goals.
3. Technology :
Technology provides the resources with which people work and also affects
the tasks that they perform.
It allows people to do more & better work. But, it also restricts people from
doing things in various ways. In fact, it has costs as well as benefits.
4. Environment :
All organizations operate within a given internal and external environment.
In fact, no organization exists alone.
An organization is a part of a larger system that contacts other factors, such as
a Govt., the family and other organizations.
All of these mutually influence one another in a complex way. Environment,
thus, affects people by influencing their attitudes, working conditions etc.
One can infer that an organization is the effect for which environment also
becomes a key element in the study of OB.
Scope of OB
The scope of OB includes the study of individuals, groups and organization/
structure.
NATURE OF OB:
1. A separate field of study and not a discipline only
A discipline is an accepted science that is based on a theoretical foundation.
But, OB has a mutual inter disciplinary orientation and is, thus, not based on a
specific theoretical background.
Hence, OB is a separate field of study.
2. An interdisciplinary approach :
OB tries to integrate the relevant knowledge drawn from related disciplines
like psychology, sociology, and anthropology to make them applicable for
studying and analysis organisational behavior.
3. An applied science :
The very nature of OB is applied.
What OB basically does is the application of various researches to solve the
organizational problems related to human behavior.
As OB involves both applied research and its application in organizational
analysis, hence, OB can be called both science as well as art.
4. A Normative science :
OB is a normative science also.
While the positive science discusses only cause effect relationship, OB
prescribes how the findings of applied researches can be applied to socially
accepted organizational goals.
5. A humanistic and optimistic approach:
2
, OB treats people as thinking, feeling, human being.
It is based on the belief that people have an innate desire to be independent,
creative and productive.
6. A total system approach:
The systems approach is one that integrates all the variables affecting
organizational functioning.
The system’s approach has been developed by the behavioural scientists to
analyze human behaviour in view of his/ her socio - psychological framework.
HISTORICAL DEVELOPMENT OF OB
The development in behavioural thought can be presented under various
stages for the sake of convenience of analysis: viz (1) Industrial revolution (2)
Scientific management, (3) Human relations movement, and (4) Hawthorne
studies.
I. Industrial Revolution:
The Industrial revolutions (1776) started in the beginning of the last quarter of
the eighteenth century.
It brought about materialism, discipline, monotony, boredom, job
displacement, impersonality, work interdependence, and other related
behavioral phenomena.
The industrial revolution led to increase in production that eventually gave
workers increased wages followed by increased job satisfaction and
decreasing work hour.
Robert Owen, a young Welsh factory owner, about the year 1800 was one of
the first to emphasize the human needs of his employees.
He refused to employ the young children, on the one hand, and educated his
adult workers about proper cleanliness and temperance, on the other.
That is why he was called the “Father of Personnel Administration” by an early
writer Frank Podmore.
In 1835, Andrew Ure, a pioneering behavioural scientist, published his work
on “The philosophy of manufactures. He recognized a third factor, i.e human
factor, besides the mechanical and commercial parts of manufacturing.
He provided workers with hot tea, medical treatment, a fan apertures for
ventilation, and sickness payments.
In India also, J.R.D TATA took a special interest in the welfare of his workers.
The welfare schemes included were installing humidifiers, fire sprinklers,
installation of pension fund, and payment for accident compensation.
All these experiments done in the express mill showed that not only profits
but people/ workers also mattered to him.
Scientific Management:
Frederick W. Taylor inaugurated the interest in people’s behavior at work in
the United States in the Midvale Company.
3
MODULE - I
Definition of organizational behavior :
According to Luthans “OB is directly concerned with the understanding
prediction and control of human behavior in organizations.
Davis and Newstrom have defined OB as “The study and application of
knowledge how people act or behave within organization. It is a human tool
for human benefit. It applies broadly to the behavior of people in all types of
organizations such as business, Govt. schools and service organizations.
According to Robbins, “OB is a field of study that investigates the impact that
individuals, groups, and structure have on behavior within organs. For the
purpose of applying such knowledge towards improving an organisation’s
effectiveness.
In brief, what OB studies is three determinants of behavior in organs,
individuals, groups and structures.
Key Elements of OB :
OB is based on certain key elements also called, “Fundamental Concepts of
assumptions”.
Four elements of OB are: People, structure, technology, and the environment.
I. People :
Organizations are run by people and these people consist of individuals and
groups.
Though people have much in common, yet they differ from each other. One
can find glaring differences in people’s trait, intelligence, personality or any
such trait.
Therefore, manager has to treat employees with individual differences
differently. The subject matter of OB begins with individual.
As an individual joins organization alone with his / her social background, like
and dislikes, pride & prejudices, OB studies an individual as a whole person.
Human behavior is always caused. Behavior is directed towards some goals.
There is always a cause behind every human behavior or act.
E.G. – When a worker is absent from work, there is a cause behind. The
manager must know the cause to solve the problem.
2. Structure :
Organizations are social systems. Two types of social systems that exist side by
side in an organization are formal and other is the informal social system.
The formal relationship of people in organizations is called structure.
Different jobs are required to accomplish the organizational goals and
objectives.
People such as managers and employees, accountant and assemblers who are
performing different jobs at different levels have to be related in some
structural way so that their work can be effectively coordinated.
1
, It means that OB is based on mutuality of interest. It is mutual interest that
units, people and organization go side by side for accomplishing individual and
organizational goals.
3. Technology :
Technology provides the resources with which people work and also affects
the tasks that they perform.
It allows people to do more & better work. But, it also restricts people from
doing things in various ways. In fact, it has costs as well as benefits.
4. Environment :
All organizations operate within a given internal and external environment.
In fact, no organization exists alone.
An organization is a part of a larger system that contacts other factors, such as
a Govt., the family and other organizations.
All of these mutually influence one another in a complex way. Environment,
thus, affects people by influencing their attitudes, working conditions etc.
One can infer that an organization is the effect for which environment also
becomes a key element in the study of OB.
Scope of OB
The scope of OB includes the study of individuals, groups and organization/
structure.
NATURE OF OB:
1. A separate field of study and not a discipline only
A discipline is an accepted science that is based on a theoretical foundation.
But, OB has a mutual inter disciplinary orientation and is, thus, not based on a
specific theoretical background.
Hence, OB is a separate field of study.
2. An interdisciplinary approach :
OB tries to integrate the relevant knowledge drawn from related disciplines
like psychology, sociology, and anthropology to make them applicable for
studying and analysis organisational behavior.
3. An applied science :
The very nature of OB is applied.
What OB basically does is the application of various researches to solve the
organizational problems related to human behavior.
As OB involves both applied research and its application in organizational
analysis, hence, OB can be called both science as well as art.
4. A Normative science :
OB is a normative science also.
While the positive science discusses only cause effect relationship, OB
prescribes how the findings of applied researches can be applied to socially
accepted organizational goals.
5. A humanistic and optimistic approach:
2
, OB treats people as thinking, feeling, human being.
It is based on the belief that people have an innate desire to be independent,
creative and productive.
6. A total system approach:
The systems approach is one that integrates all the variables affecting
organizational functioning.
The system’s approach has been developed by the behavioural scientists to
analyze human behaviour in view of his/ her socio - psychological framework.
HISTORICAL DEVELOPMENT OF OB
The development in behavioural thought can be presented under various
stages for the sake of convenience of analysis: viz (1) Industrial revolution (2)
Scientific management, (3) Human relations movement, and (4) Hawthorne
studies.
I. Industrial Revolution:
The Industrial revolutions (1776) started in the beginning of the last quarter of
the eighteenth century.
It brought about materialism, discipline, monotony, boredom, job
displacement, impersonality, work interdependence, and other related
behavioral phenomena.
The industrial revolution led to increase in production that eventually gave
workers increased wages followed by increased job satisfaction and
decreasing work hour.
Robert Owen, a young Welsh factory owner, about the year 1800 was one of
the first to emphasize the human needs of his employees.
He refused to employ the young children, on the one hand, and educated his
adult workers about proper cleanliness and temperance, on the other.
That is why he was called the “Father of Personnel Administration” by an early
writer Frank Podmore.
In 1835, Andrew Ure, a pioneering behavioural scientist, published his work
on “The philosophy of manufactures. He recognized a third factor, i.e human
factor, besides the mechanical and commercial parts of manufacturing.
He provided workers with hot tea, medical treatment, a fan apertures for
ventilation, and sickness payments.
In India also, J.R.D TATA took a special interest in the welfare of his workers.
The welfare schemes included were installing humidifiers, fire sprinklers,
installation of pension fund, and payment for accident compensation.
All these experiments done in the express mill showed that not only profits
but people/ workers also mattered to him.
Scientific Management:
Frederick W. Taylor inaugurated the interest in people’s behavior at work in
the United States in the Midvale Company.
3
