CHAPTER 1

INTRODUCTION TO ORGANIZATION BEHAVIOR

Objective: The objective of this lesson is to give a basic perspective of Management

theories and Practices. This will form foundation to study other functional areas of
management and to provide the students with the conceptual framework and the
theories underlying Organizational Behavior.

Lesson Structure:

1. Introduction

2. Organization Behavior

3. Concept and significance

4. Human Relations and Organization Behavior

5. Historical Development of Organization Behavior

6. Industrial Relation

7. Scientific Management

8. The Human Relations Movements Hawthorne Studies

9. Meaning and Definition of Organization behavior

10. Features of OB

11. Basic Assumptions

12. Contributing Discipline to OB

13. Emergence of HR and OB

14. Approaches to Organizational Behavior

15. Classical Approach

16. Neo-Classical Approach

17. Modern Approach

18. Scope of OB

19. Nature/Fundamental concepts of OB

20. Nature of people

21. Nature of Organization

22. Determinants of Organizational Behavior

23. Significance of OB

24. Criticism

25. Summary

Interdiction
The study of Organizational Behavior (OB) is very interesting and challenging too. It is related
to individuals, group of people working together in teams. The study becomes more challenging
when situational factors interact. The study of organizational behavior relates to the expected
behavior of an individual in the organization.
No two individuals are likely to behave in the same manner in a particular work situation. It is
the predictability of a manager about the expected behavior of an individual. There are no
absolutes in human behavior. It is the human factor that is contributory to the productivity hence
the study of human behavior is important. Great importance therefore must be attached to the
study.
Researchers, management practitioners, psychologists, and social scientists must understand the
very credentials of an individual, his background, social framework, educational update, impact
of social groups and other situational factors on behavior.

Question no.1: What is the relationship between management and Organizational

Behavior? Explain. (May, 2018)
Answer: Organizational Behavior:

A successful business is not able to lack of a good management as well as manager. The manager
has important effect to activities in trading and makes profit for business. A manager who
controls employees duty and acquires goals from employees by making decision, assigning
resource and directing activities. Also, the successful manager should perform four functions
such as planning, organizing, leading and controlling. Besides that, organisational behavior holds
important role in business as well as in management. It is known as a study how individuals,
groups and structure effect and are influenced by behavior in organisations and the knowledge is
applied to individuals, groups and structure to improve or make more effectively for
organisations (Robbins,P et al.2010).

The organisational behavior is one of basic elements that support for management in business. It
can help managers understand behavior and what individuals, groups and structure are doing as
well as can predict the actions from them or can realize causes and effects among relationships in
organisations (Robbins,P et al.2010). Similarity with management functions, organisations also
use many different resources to achieve and remain the goals or objectives, these resources are
arranged into four groups such as human, financial, physical and information. So managers can
use and compose these resources with the four basic function (planning, organizing, leading and
controlling) with the purpose of getting effective goals from the organization. Following that,
managers will show how to apply these basic functions and resources to organization and its
goal. Planning is the first managerial function and it is the process that is established to
determine future position and decide how to get the goals. The second function is organizing, the
process of designing jobs and determining the tasks as well. Leading, the third function is the
process of motivating employees, group dynamics or resolving conflicts in organization.
Controlling, the fourth function, is the process of comparing, monitoring and correcting
performance with goals of the organization (Griffin & Moorhead, 2010). The successful
managers should perform effective functions and different roles in organization. The
interpersonal roles that are the main tasks of managers and are relative to employees, the
interpersonal roles are including the figurehead, the leader and the liaison. The second one is
decisional roles, there are including the entrepreneur, the disturbance handler, the resource
allocator and the negotiator. They are important roles in decision making and the high quality
decision can be productive for any organization. For example, the changing or innovations or
new planning and strategy in organization will be implemented by entrepreneur.

Question no.2: Describe the elements, concepts, and significance of organizational

behavior? (May, 2017)

Answer: Fundamental Concepts of Organizational Behavior

Organization Behavior is based on a few fundamental concepts which revolve around the nature
of people and organizations.

Such basic concepts are not specific to the field of OB.

In every field of social science or even physical science, has a philosophical foundation of basic
concepts that guide its development. There are certain philosophical concepts in organization
behavour also.

The fundamental concepts of organizational behavior are;

 Individual Differences.

 Perception.

 A Whole Person.

 Motivated Behavior.

 The desire for Involvement.

 The value of the Person.

 Human Dignity.

 Organizations are Social System.

 Mutuality of Interest.
  Holistic Concept.

Elements of Organizational Behavior:

1. People: People make up the internal social system of the organization. They consist of
individuals and groups. Groups may be formal or informal.
2. Structure: Structures define the formal relationship between people in an organization.
3. Technology: Technology consists of physical objects, activities and process, knowledge, etc
through which people accomplish their tasks to achieve organizational objectives.
4. Environment: All organizations operate within an external environment. It is part of a larger
system that contains thousand of other elements. This includes the suppliers, customers,
competitors, governments’ agencies, employees, unions, political parties, and economic,
political, cultural, technological and social factors in which the organization embedded.
Significance of Organizational Behavior:
OB is concerned with understanding, applying and controlling of behavioral and structural
knowledge of an organization for organization’s effectiveness. Management function includes
Planning, organizing, leading and controlling where people are involved in different roles
(interpersonal roles, informational roles, and decisional roles) and different capacities. Therefore,
for an organization to succeed it is very important for it to understand its organization’s culture,
people by way of understanding their perception, attitudes, motivation, personality, key
personality characteristics relevant to workplace, learning, job satisfaction, etc through theories
of motivation, learning, and reinforcement. And mould their dissatisfaction to satisfaction,
motivate them to achieve desired results, provide them appropriate work culture, growth
opportunities, punish their inappropriate behavior, and infusing learning environment and
leadership.
Question no.3: State and explain the Human Relation and Organizational Behavior?
(May, 2018)

Answer: Relation and Organizational Behavior:

The key in fully understanding the gravity of such concepts is dissection and magnification. If
we look directly at Human Relations (HR), we find a practice of understanding observational
patterns between people in the workforce. HR deals with the interactions between people that
ultimately influence the pros and cons in the work environment. It is important for HR to
thoroughly identify which members in the subset of people make a good fit for their respective
organization. This may be considered a microcosm of organizational behavior. Here we have
how the subset of people used in HR relates directly to the organization that they represent. As a
concise example, how I view my students or fellow tutors would be represented under Human
Relations; how I view Instated as a whole is my participation in Organizational Behavior.

Human relations (HR) are a department in an organization responsible for the management of
hiring qualified personnel for the purpose of filling vacant positions. HR department's activities
include but not limited to - Advertising and posting; recruiting; staffing; interviewing; training
and development; career development; layoffs; hiring; termination; and performance reviews of
company employees. Organizational behavior on the other hand is the actions and attitudes of
individuals and groups toward one another and toward the organization as a whole, and its effect
on the organization’s functioning and performance

Human relations are the relationships that are involved in a business such as employer-employee
relation and customer-business relations. Organizational behavior is the behavior that is accepted
as norm for the organization, which is usually based off the mission statement of the company.

Why study Human Relations and Organizational Behavior?

Considering that your human resources are the most valuable in your organization, studying how
they relate to one another and to the organization is critical for success. Realizing that not every
employee responds to the same type of praise, reprimand, and/or recognition is vital to creating a
productive environment with a desirable culture. This is important not only in retaining talent,
but also in attracting new talent to your organization.

When you understand Human Relations - you will understand how a person reacts to various
situations. Take for example a sales person selling an air conditioner to a couple. By
understanding how people act will allow the salesperson to tailor his/her presentation. You will
determine who controls the money, what are a person’s hot/cold spots and when/how to close the
sale.
Organizational behavior is similar to human reactions. I like to use this metaphor. When a
manager/owner is hiring for their company, they need to find the right person for the right seat
on a bus. If you hire the right person but place them in the wrong department - you'll have a
dysfunctional business. An organization is very much alive - similar to a living organism.
Remember; hire the right person for the right seat. This will greatly help in guiding the buss in
the right direction.

Question no.4: Explain the Historical Development of Organization Behavior? (May, 2018)

Answer: Historical Development of Organization Behavior:

In 1776, Adam Smith advocated a new form of organizational structure based on the division of
labor. One hundred years later, German Sociologist Max Weber introduced the concept about
rational organization s and initiated the concept of charismatic leadership.

Though the origin to the study of Organizational Behavior can trace its roots back to Max Weber
and earlier organizational studies, it is generally considered to have begun as an academic
discipline with the advent of scientific management in the 1890's, with Taylorism representing
the peak of the movement. Thus, it was Fredrick Winslow Taylor who introduced the systematic
use of goal setting and rewards to motivate employees that could be considered as the starting of
the academic discipline of Organizational Behavior.

Proponents of scientific management held that rationalizing the organization with precise sets of
instructions and time-motion studies would lead to increased productivity. Studies of different
compensation systems were also carried out to motivate workers.

In 1920's Elton Mayo an Australian born Harvard Professor and his colleagues conducted
productivity studies at Western Electric's Hawthorne Plant. With this epoch making study the
focus of organizational studies shifted to analysis of how human factors and psychology affected
organization s. This shift of focus in the study of organization s was called the Hawthorne Effect.
The Human Relations Movement focused on teams, motivation, and the actualization of goals of
individuals within organization s. Studies conducted by prominent scholars like Chester Barnard,
Henri Fayol, Mary Parker Follett, Frederick Herzberg, Abraham Mas low, David Mc Cellan and
Victor Vroom contributed to the growth of Organizational Behavior as a discipline.
In the 1960's and 1970's, the field was strongly influenced by social psychology and the
emphasis in academic study was quantitative research. An explosion of the orising, bounded
rationality, informal organization, contingency theory, resource dependence, institution theory
and population ecology theories has contributed to the study of organizational behavior.

Question no.5: Define Industrial Relation? (May, 2016)

Answer: Beginnings of the Industrial Revolution:

A revolution in agriculture in the 1700s created conditions that favored the Industrial Revolution.
Farmers began growing new crops and using new technology such as the seed drill and the iron
plow. Increased food production improved people's diet and health, which in turn contributed to
rapid population growth. Better farming methods meant that fewer people were needed to farm.
As a result, unemployed farmers formed a large new labor force.

The factory system

The Industrial Revolution began in the textile industry, where a series of inventions created new
demands for laborers. Between 1733 and 1793, inventors produced new machines, such as the
flying shuttle, the spinning jenny, and a water-powered loom, that speeded up the spinning and
weaving of wool and cotton. Many new machines were powered by running water, so inventors
built spinning mills near rivers and hired many workers to run the machines. The new machines
led to the growth of the factory system, which brought workers and machines together in one
place to manufacture goods. By the late 1700s, steam began to replace water as a source of
power. Inventors such as Thomas Newcomen and James Watt improved the steam-powered
engine. Steam engines gave a boost to two other industries that were essential to the Industrial
Revolution & emdash;coal and iron. New processes were developed to produce stronger iron. In
the mid-1800s, Henry Bessemer developed a process to improve the production of steel, a
mixture of iron and other materials. Steel triggered the growth of still other industries.

Improvements in transportation and communication

During the Industrial Revolution, advances were made in transportation and communication. In
Britain, roads made of longer-lasting surfaces and canals connected all parts of the nation. A
mining engineer, George Stephenson, developed the first steam-powered locomotive, opening
the way for the building of railroads. Railroads and steam-powered ships improved
transportation around the world. In 1837, an American inventor, Samuel F.B. Morse, devised the
telegraph, which revolutionized communications.

The Industrial Revolution Spreads

After the 1850s, the Industrial Revolution entered a new phase as Belgium, France, Germany, the
United States, and later Japan industrialized rapidly. The French government supported projects
to improve transportation. After Germany became unified in the 1870s, its industries forged
ahead.

Question no.6: What is Scientific Management? (May, 2019)

Answer: Scientific Management:

Definition: The Scientific Management Theory is well known for its application of

engineering science at the production floor or the operating levels. The major contributor of this
theory is Fredrick Winslow Taylor, and that’s why the scientific management is often called
as “Taylorism”.

The scientific management theory focused on improving the efficiency of each individual in the
organization. The major emphasis is on increasing the production through the use of intensive
technology, and the human beings are just considered as adjuncts to machines in the performance
of routine tasks.

The scientific management theory basically encompasses the work performed on the production
floor as these tasks are quite different from the other tasks performed within the organization.
Such as, these are repetitive in nature, and the individual workers performing their daily
activities are divided into a large number of cyclical repetition of same or closely related
activities. Also, these activities do not require the individual worker to exercise complex-
problem solving activity. Therefore, more attention is required to be imposed on the
standardization of working methods and hence the scientific management theory laid emphasis
on this aspect.

The major principles of scientific management, given by Taylor, can be summarized as follows:
1. Separate planning from doing.

2. The Functional foremanship of supervision, i.e. eight supervisors required to give directions
and instructions in their respective fields.

3. Time, motion and fatigue studies shall be used to determine the fair amount of work done by
each individual worker.

4. Improving the working conditions and standardizing the tools, period of work and cost of
production.

5. Proper scientific selection and training of workmen should be done.

6. The financial incentives should be given to the workers to boost their productivity and
motivate them to perform well.

Thus, the scientific management theory focused more on mechanization and automation, i.e.,
technical aspects of efficiency rather than the broader aspects of human behavior in the
organization.

Question no.7: What are major findings of the Hawthorne Experiments? Discuss their
utility to a practice. (May, 2016)

Answer: The Human Relations Movement Hawthorne Studies:

The Hawthorne effect — an increase in worker productivity produced by the psychological

stimulus of being singled out and made to feel important.

Individual behaviors may be altered by the study itself, rather than the effect the study is
researching was demonstrated in a research project (1927 - 1932) of the Hawthorne plant of the
Western Electric Company in Cicero, Illinois. This series of research, first led by Harvard
Business School professor Elton Mayo along with associates F. J. Roethlisberger and William J.
Dickson started out by examining the physical and environmental influences of the workplace
(e.g. brightness of lights, humidity) and later, moved into the psychological aspects (e.g. breaks,
group pressure, working hours, managerial leadership). The ideas that this team developed about
the social dynamics of groups in the work setting had lasting influence — the collection of data,
labor-management relations, and informal interaction among factory employees.
The major finding of the study was that almost regardless of the experimental manipulation
employed, the production of the workers seemed to improve. One reasonable conclusion is that
the workers were pleased to receive attention from the researchers who expressed an interest in
them. The study was only expected to last one year, but because the researchers were set back
each time they tried to relate the manipulated physical conditions to the worker's efficiency, the
project extended out to five years.

Four general conclusions were drawn from the Hawthorne studies:

The aptitudes of individuals are imperfect predictors of job performance. Although they give
some indication of the physical and mental potential of the individual, the amount produced is
strongly influenced by social factors.

Informal organization affects productivity. The Hawthorne researchers discovered a group life
among the workers. The studies also showed that the relations that supervisors develop with
workers tend to influence the manner in which the workers carry out directives.

Work-group norms affect productivity. The Hawthorne researchers were not the first to
recognize that work groups tend to arrive at norms of what is a fair day's work; however, they
provided the best systematic description and interpretation of this phenomenon.

The workplace is a social system. The Hawthorne researchers came to view the workplace as a
social system made up of interdependent parts.

For decades, the Hawthorne studies provided the rationale for human relations within the
organization. Then two researchers (Franke, Kaul, 1978) used a new procedure called time-series
analyses. Using the original variables and including in the Great Depression and the instance of a
managerial discipline in which two insubordinate and mediocre workers were replaced by two
different productive workers, with one who took the role of straw boss (see note below); they
discovered that production was most affected by the replacement of the two workers due to their
greater productivity and the affect of the disciplinary action on the other workers. The
occurrence of the Depression also encouraged job productivity, perhaps through the increased
importance of jobs and the fear of losing them. Rest periods and a group incentive plan also had
a somewhat positive smaller effect on productivity. These variables accounted for almost all the
variation in productivity during the experimental period. Early social sciences may have readily
to embrace the original Hawthorne interpretations since it was looking for theories or work
motivations that were more humane and democratic.

Implementing the Hawthorne Effect at Your Small Business

The Hawthorne Effect is largely about managing employees so they feel more like an integral
part of your business. Encouraging employee input into workplace decisions and operational
decisions tends to make employees feel more like part of a cohesive team striving to achieve the
common goal of making the business more profitable. One of the first steps you can take to
induce the Hawthorne effect in your own business is to try to put yourself inside the perspective
of your employees and attempt to see your business operation from their perspective. From this
point, attempt to determine what you could do to enhance a feeling of teamwork and greater
participation in the overall success of the business. For example, you could periodically hold
focus group meetings with employees to get their input on changes to the operating procedures
that could improve their working conditions. Another step that can make employees feel more
connected and appreciated is to make sure that management personnel are located nearby and
easily accessible when employees may have questions. Part of the research on the Hawthorne
effect determined that employees tend to be more productive when they feel that their efforts are
being watched and that attention is paid to their performance. Because the Hawthorne studies
concluded that generally any change in the workplace tends to induce the Hawthorne effect, it
may be a good idea to make changes periodically. Such changes can be as simple as those in the
original Hawthorne studies, such as changing the lighting. The most effective changes are likely
to be those that result from employee input. Boosting productivity from your employees is as
simple as paying more attention to them and their needs and concerns. Making employees feel
more appreciated encourages them to improve their performance.

Question no.8: Briefly explain the meaning and definition of organization behavior? (May,
2019)

Answer: Meaning and Definitions: According to K Aswathappa, Stephen P. Robbins, L. M.

Prasad, Newstram and a Few others:
In words of K Aswathappa, “OB is the study of human behavior in organizational setting, of the
interface between human behavior and organization and of the organization itself.”
In words of Stephen P. Robbins, “OB is a field of study that investigates the impact that
individuals, groups and structures have on behavior within organizations for the purpose of
applying such knowledge towards improving an organization’s effectiveness.”
According to L. M. Prasad, “Organizational behavior can be defined as the study and application
of knowledge about human behavior related to other elements of an organization such as
structure, technology and social systems.”
According to Davis and Newstram, “Organizational behavior is the study and application of
knowledge about how people act within organizations
According to Fred Luthans, “Behavior is directly concerned with the understanding, prediction
and control of human behavior in organizations.”
In words of John Newstram and Keith Devis, “Organizational behavior is the study and
application of knowledge about how people as individuals and as groups act within
organizations. It strives to identify ways in which people can act more effectively.”
OB is the study of individual behavior in isolation, when in group and as a part of an
organization. The study of individual behavior only, would be incomplete because behavior is
affected by the people surrounding us as well as by the organization, in which we work. Studying
only individuals or only organizations would be of no use. It is essential to study both
simultaneously.
Question no.9: Explain the features of Organization Behavior? (May, 2018)

Answer: features of Organization Behavior are as the following:

1. A Field of Inquiry

A field open to an inquiry is open to anyone who wants to examine, explore and understand or
even to evaluate and predict. That makes all of us Lay, scientists because all of us have our own
theories that describe, explain and prescribe behavior and some of us want to test them, share
them and improvise upon them. A scientific theory explains a phenomenon on the basis of a
plausible general principle.
If we understand a theory as an explanation of reality, even when restricted to formal
organizations, the organizational behavior faces the tough challenges of being systematic and
free of biases, open-minded and enquiring, quantitative through measurements without losing
sensitivity to the qualitative dimensions, tolerant to multiplicity of valid explanations and
accepting of knowledge emerging from practice.

2. Focus on Behavior Within the Organization

While behavioral sciences may focus on any behavior in general, including animal behavior
organizational behavior is concerned with human behavior in work setting. Whenever is the type
of an organization whenever work happens, the basic OB position is that all of such organization
s represents a dynamic interrelation between individuals, groups and the largest elements of the
organization?

This means that a valid understanding of OB requires not just an individual or group focus and
inquiring as to how they behave at work but also the characteristics pattern of organizational
actions over time, which reflects that organizational knowledge.

3. Humanistic and Positive

The basic value in the study of OB is that an individual is an autonomous entity, with an innate
potential to be creative & productive. In contrast to driving human performance, the emphasis is
on creativity and the joy of freedom of choice. This difference arises because of the basic
assumption that a person, who values autonomy and choice, would also be aware of the
responsibility of making appropriate choices.

The view highlights the importance of the knowledge that supports the autonomy and choice as
well as the continued development and growth of the individual. If everyone has such a potential
for development, learning and choice then collective human efforts should be organized in a
democratize manner and through goodwill and fairness, so as to nurture, support and facilitate
the efforts to relies on the human potential.
4. Importance of Groups 

Organizational Behavior accepts groups as a powerful social phenomenon within the

organization that strongly affects and gets affected by individuals and organization. In an
organization, no individual works in isolation, just as one’s family constitutes one’s primary
social system, the group with whom one works family is one’s secondary social system. A
working group is generally understood as a collection of people who have individual as well as
common work goals and who depend on each other for achieving those goals.

5. Ongoing Process

Organizational effectiveness as an objective for OB implies a continuous effort to change

develops in the context of a dynamic environment. Thus OB assigned special importance to
planned change, individual as well as organizational learning and the creation of
an organizational culture that supports these. This thrust for change and development has to be
organization-wide not in small patches or parts of it. It also has to be comprehensive, that is
addressing both the structural as well as process changes. It cannot be a sporadic effort but has to
be maintained at a sustained level.

Question no.10: Discuss the basic assumption of Organization Behavior? (May, 2017)

Answer: The Basic Assumption of Organization Behavior explains in the bellow:

Every field of social science has a philosophical foundation of basic concepts that guides its
development. Organizational behavior is based on the basic concept of human relations
which is a noteworthy social approach towards the establishment of inter-personal
relationship between superiors and subordinates. Organizational behavior deals with a set
of fundamental concepts revolving around the nature of the people and organization. These
concepts of organizational behavior are as follows:
 Basic Assumptions of OB

1. The Nature of People

With regard to people, there are four basic assumptions: individual differences, a whole person,
caused behavior (motivation) and value of the person (human dignity).
a) Individual Differences
People have much in common but each person in the world is also individually different. The
idea of individual differences comes originally from psychology. From the day of birth, each
person is unique and individual experiences after birth make people even more different. So,
management can get the subordinates motivated by treating them individually and differently.
Only one measure of motivated all people working in an organization. Some are motivated by
money, but some other by status and any other. Hence, overall motivation plan is needed to deal
with subordinates individually. Therefore, individual differences mean that management can get
the greatest motivation among employees by treating them differently.
b) A Whole Person
Some managers think that they have employed a person just for his labor, skills or brain. So, they
are concerned with his labor of work only but he has to employ a whole person rather than
certain separate characteristics. Managers have to do a lot with a person’s personality, personal
life, knowledge, development and other things. Though a person’s different traits may be
separately studied, but in final analysis, they are integral part of one system making up a whole
person. Skill does not exist apart from background or knowledge. Home life is not totally
separable from work life and emotional conditions are not totally separable from work life and
emotional conditions are not separable from physical conditions.
c) Caused Behavior (Motivation)
We know that behavior has certain causes. These may related to a person’s needs, and/or the
consequences that result from acts. In case of needs, all normal human behavior and his/her
course of future actions, both are caused by a person’s need structure. This fact leaves
management with two basic ways to motivate people. It can show them how certain actions will
increase their need fulfillment, or it can threaten decreased need fulfillment unless they follow a
required course of action. Clearly a path towards increased need fulfillment is the better
approach. Motivation is essential for the operation of organization. No matter how much
machinery and equipment an organization has, these things cannot be put to use until they are
released and guided by people who have been motivated. The management can create a suitable
environment in the organization, conductive to the fulfillment of individual needs within the
overall structure.
d) Value of the Person (Human Dignity)
Value of the person is more an ethical philosophy than a scientific conclusion. It confirms that
people are to be treated differently from other factors of production because they are of a higher
order in the universe. It recognizes that people are of a higher order, they want to be treated with
respect and dignity, and should be treated this way. Every job, however simple, entitles the
people who do it to get respect and recognition of their unique aspirations and abilities. The
concept of human dignity rejects the old idea of using employee as economic tool. Therefore,
treatment of the working staffs as a respectable human being, appreciation of their skills and
recognition of their personality are very important basis of human relations.
Question no.11: What are the Contributing to Discipline to Organization Behavior? (May,
2019)

Answer: Contributing to Discipline to Organization Behavior explained in the bellow:

Organizational behavior is an applied behavioral science that is built upon contributions from a
number of behavioral disciplines. The main areas are psychology, sociology, social psychology,
anthropology, and political science.
Psychology
Psychology is the science that attempts to measure, explain, and at times change the behavior of
humans and other animals. Early industrial/organizational psychologists were concerned with
problems of fatigue, boredom, and other factors relevant to working conditions that could
disrupt/ impede efficient work performance. More recently, their contributions have been
expanded to include learning, perception, personality, emotions, training, leadership
effectiveness, needs and motivational forces, job satisfaction, decision making processes,
performance appraisals, attitude measurement, employee selection techniques, work design, and
job stress.
Sociology
Sociologists study the social system in which individuals fill their roles; that is, sociology studies
people in relation to their fellow human beings. Their significant contribution to OB is through
their study of group behavior in organizations, particularly formal and complex organizations.
Social Psychology
Social psychology blends the concepts of psychology and sociology. It focuses on the influence
of people on one another. The major challenge deals with the issue of how to implement it and
how to reduce barriers to its acceptance.
Anthropology
Anthropology is the study of societies to learn about human beings and their activities.
Anthropologists work on cultures and environments; for example, they have aided in
understanding differences in fundamental values, attitudes, and behavior among people in
different countries and within different organizations.
Political Science
Political science studies the behavior of individuals and groups within a political environment. It
focuses on areas, such as, conflict, intra-organizational politics and power.
Emergence of HR and OB:
Organizational behavior is a term used to explain the concept of the behavior of individuals who
constitute the human elements of an organization. This is related to human resources, which is a
concept that is used to describe the management of the employees in any organization. From the
description of the two terms, it is easy to see how organizational behavior (OB) and human
resource management (HRM) are related. Organizational behavior looks at the individual
behavior, and then moves to group behavior, progressively to the organization behavior, which
we can also call the organization culture. It requires skills to understand how the organization
and its members affect each other. Its areas include frameworks for diagnosing and resolving
problems in organizational settings. Thereby we can say that organizational behavior (OB) is the
study of individual and group dynamics within an organization setting whereas human behavior,
call it individual behavior is a sub-set of organization behavior.
Human behavior is inherent in each individual which means his characteristics, his way of
behaving and thinking are his own features while organizational behavior is a group or company
culture unique of each own felt and done. The relationship between organizational behavior and
human resource management stems from the fact that human resource management can be used
as a tool for shaping organizational behavior.  The effective use of human resources can be used
to shape the perceptions and behavior of the employees in an organization, resulting in a desired
outcome in their organizational behavior. This link between organizational behavior and human
resource management can be seen in the area of the workers’ attitudes toward their jobs. Part of
the responsibilities of the human resources department is managing the issues related to the
welfare of the employees in an organization. When this responsibility is pursued diligently, the
employees will have a more positive attitude toward their jobs and will be more willing to go the
extra mile in furthering their duties.
Thus we can say that the field of organizational behavior and human resource management deals
with the behavior of individuals and groups within organizations. They investigate the
enhancement of the effectiveness of an organization’s human capital in order to gain competitive
advantage and achieve organizational goals. OB field include topics such as personality /
dispositions, emotion and affect, motivation, social concept and identity, decision making and
cognition, justice and trust, organization and work attachment, leadership, groups and teams, and
organizational culture and climate whereas HR encompass topics such as job analysis,
recruitment, selection, training and development, performance appraisal, compensation, quality
of work life, workforce diversity, and strategic human resource management. Students seeking
managerial careers in any business function can valuably learn about leadership, motivation,
morale, performance, teams, organizational culture and organizational design by opting
organizational behavior course, whereas those interested in making their career as human
resource management specialists and managers can gain technical knowledge about selection,
performance appraisal, training, compensation, workforce diversity, work and family programs,
and strategic human resource management.
Question no.12: Explain the Emergence of HR and Organization Behavior? (May, 2019)
Answer: The Emergence of HR and OB are explained in the bellow:
Organizational behavior is a term used to explain the concept of the behavior of individuals who
constitute the human elements of an organization. This is related to human resources, which is a
concept that is used to describe the management of the employees in any organization. From the
description of the two terms, it is easy to see how organizational behavior (OB) and human
resource management (HRM) are related. Organizational behavior looks at the individual
behavior, and then moves to group behavior, progressively to the organization behavior, which
we can also call the organization culture. It requires skills to understand how the organization
and its members affect each other. Its areas include frameworks for diagnosing and resolving
problems in organizational settings. Thereby we can say that organizational behavior (OB) is the
study of individual and group dynamics within an organization setting whereas human behavior,
call it individual behavior is a sub-set of organization behavior.
Human behavior is inherent in each individual which means his characteristics, his way of
behaving and thinking are his own features while organizational behavior is a group or company
culture unique of each own felt and done. The relationship between organizational behavior and
human resource management stems from the fact that human resource management can be used
as a tool for shaping organizational behavior.  The effective use of human resources can be used
to shape the perceptions and behavior of the employees in an organization, resulting in a desired
outcome in their organizational behavior. This link between organizational behavior and human
resource management can be seen in the area of the workers’ attitudes toward their jobs. Part of
the responsibilities of the human resources department is managing the issues related to the
welfare of the employees in an organization. When this responsibility is pursued diligently, the
employees will have a more positive attitude toward their jobs and will be more willing to go the
extra mile in furthering their duties.
Thus we can say that the field of organizational behavior and human resource management deals
with the behavior of individuals and groups within organizations. They investigate the
enhancement of the effectiveness of an organization’s human capital in order to gain competitive
advantage and achieve organizational goals. OB field include topics such as personality /
dispositions, emotion and affect, motivation, social concept and identity, decision making and
cognition, justice and trust, organization and work attachment, leadership, groups and teams, and
organizational culture and climate whereas HR encompass topics such as job analysis,
recruitment, selection, training and development, performance appraisal, compensation, quality
of work life, workforce diversity, and strategic human resource management. Students seeking
managerial careers in any business function can valuably learn about leadership, motivation,
morale, performance, teams, organizational culture and organizational design by opting
organizational behavior course, whereas those interested in making their career as human
resource management specialists and managers can gain technical knowledge about selection,
performance appraisal, training, compensation, workforce diversity, work and family programs,
and strategic human resource management.
Question no.13: What are the different Approaches to Organization Behavior? Explain
each of those approaches. (May, 2016)
Answer: Approaches to Organization Behavior:
There are mainly four approaches to organizational behavior. They are:

 Human resources approach

 Contingency approach
 Productivity approach
 Systems approach

Human Resources Approach

The human resources approach is concerned with the growth and development of people towards
higher levels of competency, creativity and fulfillment, because people are the central resource in
any organization. This approach help employees become better in terms of work and
responsibility and then it tries to create a climate in which they can contribute to the best of their
improved abilities. This approach is also known as ‘supportive approach’ because the manager’s
primary role changes from control of employees to providing an active support for their growth
and performance.

A Contingency Approach

A contingency approach to organizational behavior implies that different situations require

different behavioral practices for effectiveness instead of following a traditional approach for all
situations. Each situation must be analyzed carefully to determine the significant variables that
exist in order to establish the more effective practices. The strength of this approach is that it
encourages analysis of each situation prior to action. Thus, it helps to use all the current
knowledge about people in the organization in the most appropriate manner.

Productivity Approach

Productivity is a ratio that compares units of output with units of input. It is often measured in
terms of economic inputs and outputs. Productivity is considered to be improved, if more outputs
can be produced from the same amount of inputs. But besides economic inputs and outputs,
human and social inputs and outputs also arc important.

Systems Approach

A system is an interrelated part of an organization or a society that interacts with everyone

related to that organization or society and functions as a whole. Within the organization ‘people’
employ ‘technology’ in performing the ‘task’ that they are responsible for, while the ‘structure’
of the organization serves as a basis for coordinating all their different activities. The systems
view emphasizes the interdependence of each of these elements within the organization, if the
organization as a whole is to function effectively. The other key aspect of the systems view of
organization is its emphasis on the interaction between the organization and its broader
environment,, which consists of social, economic, cultural and political environment within
which they operate.

Organizations arc dependent upon their surrounding environment in two main ways: First, the
organization requires ‘inputs’ from the environment in the form of raw material, people, money,
ideas and so on. The organization itself can be thought of as performing certain ‘transformation’
processes, on its inputs in order to create outputs in the form of products or
services. Secondly, the organization depends on environment such as, public to accept its output.
The systems view of organization thus emphasizes on the key interdependencies that
organizations must manage. Within themselves the organizations must trade off the
interdependencies among people, tasks, technology and structure in order to perform their
transformation processes effectively and efficiently. Organizations must also recognize their
interdependence with the broader environments within which they exist.

Question no.14: Discuss the various classical approaches to development management

thought. Distinguish between management approach of Taylor and Fayol. (May, 2018)
Answer: Classical approaches (Theory-X):

Definition: The Classical Theory is the traditional theory, wherein more emphasis is on the
organization rather than the employees working therein. According to the classical theory, the
organization is considered as a machine and the human beings as different components/parts of
that machine.

The classical perspective of management, which emerged from the Industrial Revolution,
focuses on improving the efficiency, productivity, and output of employees, as well as the
business as a whole. However, it generally does not focus on human or behavioral attributes or
variances among employees, such as how job satisfaction improves employee efficiency.

Classical management theory is based on the belief that workers only have physical and
economic needs. It does not take into account social needs or job satisfaction, but instead
advocates a specialization of labor, centralized leadership and decision-making, and profit
maximization.
Surprisingly, the classical theory developed in three streams which are explained as Bureaucracy
(Weber), Administrative Theory (Fayol), and Scientific Management (Taylor).
Difference between Fayol and Taylor’s Theories of Management

Henry Fayol Theory of Management:

Henry Fayol also known as ‘father of modern management theory’ gave a new perception to the
concept of management. He introduced a general theory that can be applied to all levels of
management and every department. The Fayol theory is practiced by the managers to organize
and regulate the internal activities of an organization. He concentrated on accomplishing
managerial efficiency.

F.W. Taylor Theory of Management:

F.W. Taylor or Fredrick Winslow Taylor is also known as the ‘father of scientific management’
proved with his practical theories that a scientific method can be implemented to management.
This scientific process involved experiments, observation, analysis, and inference and was
applied to create a cause and effect relationship. Taylor gave much concentration on the
supervisory level of management and performance of managers and workers at an operational
level.

Basis Henry Fayol F.W. Taylor

Meaning Henry Fayol, father of modern F.W. Taylor, father of scientific

management contributed fourteen management contributed four
management principles, accomplishing management principles, for enhancing
managerial efficiency. overall productivity.

Concept The general theory of management The scientific theory of management

Concentrated Top-level management Low-level management

Approach Top management based on top downward Supervisory viewpoint and bottom
approach. upward approach

Focus Focused on delivering managerial Increasing productivity of labour

efficiency.

Theory-based Personal experience Observation and experiment.

on
Question no.15: Define New-Classical Approach (Theory-Y)? (May, 2017)
Answer: New-Classical approaches (Theory-Y):
During the 1980s, mainstream economic theory rejected Keynesianism and returned to its
Classical market roots, with its emphasis on market freedom and a limited role for the state. Both
the IMF and World Bank quickly began to adopt this New-classical perspective.
Three different New-classical approaches emerged;

1. The free-market approach, where markets alone are assumed to be sufficient to generate

maximum welfare.
2. The public-choice approach, which is an extreme New-classical model which emphasises
that all government is ‘bad’ and leads to corruption and the gradual confiscation of private
property.

3. The market-friendly approach, which suggests that, while markets work, they sometimes fail
to emerge, and a government has an important role in compensating for three main market
failures: missing markets, imperfect knowledge and externalities.

New-classical theorists rejected the Keynesian view which dominated the 1970s. Despite
differences of emphasis, they have tended to agree that development is best left to markets. In
particular, New-classical economists believe that, to develop, countries must liberate their
markets, encourage entrepreneurship (risk taking), privatize state owned industries, and reform
labor markets, such as by reducing the powers of trade unions.

Trade liberalization

There is a broad consensus between New-classical economists that free trade can help stimulate
growth and development by encouraging inward investment and the application of economies of
scale and economies of scope, increasing competition and breaking down domestic monopolies
and creating a low inflation environment.

Question no.16: Define Modern Approach? (May, 2016)

Answer: Modern Approach
This approach defines organization as a system and also considers the impact of environment on
the effectiveness of the organization. This theory has three approaches namely.

(a) Systems approach

(b) Contingency approach and

(c) Multivariate approach.

(a) Systems approach:
This approach is based on the view that an organization is an open system composed of inter-
related and interdependent elements. The organization is an open-adaptive system interacting
with its own environment. The salient features are:

(a) Environmental influences on structure,

(b) Adaptability (i.e., responding to change),

(c) Efficiency and effectiveness,

(d) Emphasis on human values,

(e) Emphasis on inter-relationship and inter-dependency of sub-systems,

(f) Integration and co-ordination of all sub systems into the total system,

(g) Attention is paid towards the over-all effectiveness of the system rather than the effectiveness
of the sub-systems.

(b) Contingency approach:
This is concerned with the analysis of specific organizations with their external environments
and the adoption of a suitable structure to meet the requirements of the situation. The emphasis is
on the need to adapt the organization to the demand of changing technology, need for innovation
generating from environmental and decision making uncertainty. This approach suggests that
“There is no one best way to handle any of the managerial problems and there is no one best
organizational structure to suit all situations.”

The salient features are:

(i) Situational factors play an important role in the design of organizational structure and a
suitable management style

(ii) The determinants are (i) Size of the organization: Bigger the size, higher the complexity, (ii)
Interaction need: free flow of communication needed.

(c) Multivariate approach:
This approach is a modification of the contingency approach. It views the organization as
consisting of four interacting variables namely:

(i) Task,

(ii) Structure,

(iii) Technology and

(iv) People-Interactive means a change in any one variable automatically produces a change in
other variables. The interacting variables are:

(i) Task-Basic business

(ii) Structure-System of authority, workflow and communication

(iii) Technology-Tools and equipments

(iv) People-(Actors)-People and their behaviors’.

Change can effectively begin in any one variable as people are reoriented, structure, task and
technology can be changed. Exhibit 10.2 illustrates the multi-variety approach to organizational
theory.

If technology improves (i.e., computer numerically controlled machines, robotics, automation)

there is a need to change people skills and organizational structure and task will also change. If
people are re-oriented (new labor force), structure, task and technology will also change.

Question no.17: What is Organization Behavior? What is its scope? What is the necessity of
studying this subject? (May, 2019)
Answer: For understanding the Organization Behavior refer question no 8.
Scope of Organization Behavior:

The scope of the organizational behavior is as under:

1. Impact of personality on performance
2. Employee motivation
3. Leadership
4. How to create effective teams and groups
5. Study of different organizational structures
6. Individual behavior, attitude and learning
7. Perception
8. Design and development of effective organization
9. Job design
10. Impact of culture on organizational behavior
11. Management of change
12. Management of conflict and stress
13. Organizational development
14. Organizational culture
15. Transactional analysis
16. Group behavior, power and politics
17. Job design
18. Study of emotions
The field of the organizational behavior does not depend upon deductions based on gut feelings
but attempts to gather information regarding an issue in a scientific manner under controlled
conditions. It uses information and interprets the findings so that the behavior of an individual
and group can be canalized as desired.
Large number of psychologists, social scientists and academicians has carried out research on
various issues related to organization behavior. Employee performance and job satisfaction are
determinants of accomplishment of individual and organizational goals.
Organizations have been set up to fulfill needs of the people. In today’s competitive world, the
organizations have to be growth-oriented. This is possible when productivity is ensured with
respect to quantity of product to be produced with zero error quality. Employee absenteeism and
turnover has a negative impact on productivity.
Employee who absents frequently cannot contribute towards productivity and growth of the
organization. In the same manner, employee turnover causes increased cost of production. Job
satisfaction is a major factor to analyze performance of an individual towards his work. Satisfied
workers are productive workers who contribute towards building an appropriate work culture in
an organization.
Organizations are composed of number of individuals working independently or collectively in
teams, and number of such teams makes a department and number of such departments makes an
organization. It is a formal structure and all departments have to function in a coordinated
manner to achieve the organizational objective.
It is therefore important for all employees to possess a positive attitude towards work. They need
to function in congenial atmosphere and accomplish assigned goals. It is also important for
managers to develop an appropriate work culture. Use of authority, delegation of certain powers
to subordinates, division of labor, efficient communication, Benchmarking, re-engineering, job
re-design and empowerment are some of the important factors so that an organization can
function as well-oiled machine. This is not only applicable to manufacturing organizations but
also to service and social organizations.
What is necessity of studying Organization Behavior?
Study of OB helps to understand organization and people in a better way. OB is important it
helps to develop friendly relationship between organization and employees creating a proper
working environment in an organization. This helps in employee commitment as well as
maintains organizational citizenship behavior.
Question no.18: What are the Nature/ Fundamental Concepts of Organization Behavior?
(May, 208)
Answer: Nature/Fundamental Concepts of OB
The nature it has acquired is identified as follows:
1. A Separate Field of Study and Not a Discipline Only:
By definition, a discipline is an accepted science that is based on a theoretical foundation. But,
O.B. has a multi- interdisciplinary orientation and is, thus, not based on a specific theoretical
background. Therefore, it is better reasonable to call O.B. a separate field of study rather than a
discipline only.
2. An Interdisciplinary Approach:
Organizational behavior is essentially an interdisciplinary approach to study human behavior at
work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology,
sociology and anthropology to make them applicable for studying and analyzing organizational
behavior.
3. An Applied Science:
The very nature of O.B. is applied. What O.B. basically does is the application of various
researches to solve the organizational problems related to human behavior. The basic line of
difference between pure science and O.B. is that while the former concentrates of fundamental
researches, the latter concentrates on applied researches. O.B. involves both applied research and
its application in organizational analysis. Hence, O.B. can be called both science as well as art.
4. A Normative Science:
Organizational Behavior is a normative science also. While the positive science discusses only
cause effect relationship, O.B. prescribes how the findings of applied researches can be applied
to socially accept organizational goals. Thus, O.B. deals with what is accepted by individuals and
society engaged in an organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is
normative as well that is well underscored by the proliferation of management theories.
5. A Humanistic and Optimistic Approach:
Organizational Behavior applies humanistic approach towards people working in the
organization. It, deals with the thinking and feeling of human beings. O.B. is based on the belief
that people have an innate desire to be independent, creative and productive. It also realizes that
people working in the organization can and will actualize these potentials if they are given
proper conditions and environment. Environment affects performance or workers working in an
organization.
6 A Total System Approach:
The system approach is one that integrates all the variables, affecting organizational functioning.
The systems approach has been developed by the behavioral scientists to analyse human
behavior in view of his/her socio-psychological framework. Man’s socio- psychological
framework makes man a complex one and the systems approach tries to study his/her complexity
and find solution to it.
The fundamental concepts of organizational behavior are;

 Individual Differences
 Perception.
 A Whole Person.
 Motivated Behavior.
 The desire for Involvement.
 The value of the Person.
 Human Dignity.
 Organizations are Social System.
 Mutuality of Interest.
 Holistic Concept.

Short Answer Type Questions

Question no.19: Write the Nature of People in OB? (May, 2017)

Answer: Nature of people in OB:
The Assumptions about Nature of People It is necessary to understand basic assumptions about
the nature of people for understanding organizational behavior. The following are the basic
assumptions about nature of people.

1. Individual Differences Organizational behavior assumes that all the individuals are differences
from each other. The difference in individuals can be in several ways like physical
characteristics, intelligence, perception, personality, attitudes, aptitudes, emotion, learning
capability and communicative ability.

2. A Whole Person Organizational behavior assumes that an individual should be considered as a

whole person. We cannot separate individual’s psychology, beliefs, values, attitude from
physical work settings.

3. Selective Perception is a process by which individuals organize and interpret their sensory
impressions in order to give meaning to the environment (Robbins, 1997). Perception is an
individual’s own view. Each person has a unique way to see, organize and interpret about event,
people and things.

4. Motivated Behavior Motivation is the willingness to do something to achieve organizational

goals and, at the same time, to satisfy individual needs (Templer, Cattaneo, DeCenzo & Robbins,
2000). Every employee expects motivated behavior from manager. Manager need to understand
about how employees can be motivated for better performance.

5. Value of the Person Organizational behavior assumes that people are more valuable and
different than non-living things. Employees should be treated with respect, dignity and equity by
the organizations. Employees should not be treated only economic tools. 6. Desire for
Involvement Individuals have desire for involvement in work. They want to show their
creativity, skills, and efficiency while doing the work. People have capabilities for task
performance, role fulfillment, and meaningful contribution and to meet challenging situations.

Question no.20: Explain the Nature of Organizations in OB? (May, 2018)

Answer: Nature of Organizations in OB:
The nature of organizations is the area of study of organizational behavior. There are following
basic assumption about nature of organizations.

1. Social System Organizations are the part of social system. Organizations are operated by
social and psychological laws. Organizational behavior assumes that organizations are open
social system. These systems affect behavior of individual.

2. Mutuality of Interest Organizational behavior assumes mutuality of individual and

organization interests. Interests flow both ways. Organizations need people and people need
organizations. Mutual interest provides a common goal for all the participants, which results in
encouragement of the people to solve problems of the organization.

3. Ethical Treatment Ethics involves moral issues and choices. It deals with right or wrong
behavior about event, people and things. Ethical behavior of an individual depends on the moral
standard or codes of conduct determined by society. Managerial ethics is the standard of
behavior that guides individuals’ managers in their work. Organizational should establish rules,
code of conduct, working procedures and system.

In conclusion, the basic assumption of organizational behavior is two types. They are nature of
people and nature of organization. A basic assumption about nature of people incorporates
individual differences, a whole person, and motivated behavior, value of the person, selective
perception, and desire for involvement. A basic assumption about nature of organizations
involves social system, mutuality of interest, and ethical treatment.

Question no.21: What is Determinants of Organizations in OB? (May, 2019)

Answer: Determinants of Organizations OB:
There are three major factors that affect OB. The working environment being the base for all
three factors, they are also known as the determinants of OB. The three determinants are −

 People

 Structure

 Technology

People

An organization consists of people with different traits, personality, skills, qualities, interests,
background, beliefs, values and intelligence. In order to maintain a healthy environment, all the
employees should be treated equally and be judged according to their work and other aspects
that affect the firm.

Example − A company offers campus placement to trainees from different states like Orissa,
Haryana, Arunachal Pradesh and many more. However, during and after training, all trainees
are examined only on the basis of their performance in the tasks assigned.

Organizational Structure

Structure 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-
workers.
Technology

Technology can be defined as the implementation of scientific knowledge for practical usage. It
also provides the resources required by the people that affect their work and task performance in
the right direction.

Example − Introduction of SAP, big data and other software in the market determines
individual and organizational performance.

Environment

All 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. While
external environment can be defined as outside factors that affect the company's ability to
operate. Some of them can be manipulated by the company’s marketing, while others require
the company to make adjustments.

Some 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.

Question no.22: Define Significance of OB? (May, 2019)

Answer: Significance of OB:
1. It builds better relationship by achieving people, organizational, and social objectives.
2. It covers a wide array of human resource like behavior, training and development, change
management, leadership, teams etc.
3. It brings coordination which is the essence of management.
4. It improves goodwill of the organization.
5. It helps to achieve objectives quickly.
6. It makes optimum utilization of resources.
7. It facilitates motivation.
8. It leads to higher efficiency.
9. It improves relations in the organization.
10. It is multidisciplinary, in the sense that applies different techniques, methods, and theories to
evaluate the performances.
Question no.23: modify the Criticism of OB? (May, 2018)
Answer: Criticism of OB:
1. Behavioral bias: It further causes dependence, dis-contentment, indiscipline, and
irresponsibility.
2. Law of diminishing returns: It says that beyond a certain point, there is a decline in output
even after each additional good or positive factor.
3. Unethical practices and manipulation of people: Knowledge of motivation and
communication acquired can be used to exploit subordinates in an Organization by the
manipulative managers.
Summary:

Organizational behavior is the study of human behavior in the workplace, the interaction
between people and the organization with the intent to understand and predict human behavior.
The understanding of individual, group, and organizational behavior is critical to success as a
leader or a follower, and it requires a systematic study to even begin to grasp all of the variables
that impact behavior.

There are three very important points from this chapter:

 It is within organizations that the differences in behavior are observed. An organization is

a group of two or more people that shares a common goal and meets at regular times.
There are many types of organizations, ranging from small groups to clubs to companies;
however, the same principles apply to all organizations.
 Do not rely on your intuition. Many “common sense” ideas are wrong; therefore, a
systematic study is required. A systematic study refers to well-constructed studies that
examine the many aspects of human behavior.

 Human behavior can be understood and predicted, but it often depends on the
contingencies or the situation.