ORGANIZATIONAL BEHAVIOUR

Introduction
Organizational Behaviour (OB) is the study of human behaviour in organizational
settings, the interface between human behaviour and the organization, and the
organization itself. Organizational Behaviour researchers study the behaviour of
individuals primarily in their organizational roles. One of the main goals of
organizational behaviour is to revitalize organizational theory and develop a
better conceptualization of organizational life. As a multidisciplinary field,
organizational behaviour has been influenced by developments in a number of
allied disciplines including sociology, psychology, economics, and engineering as
well as by the experience of practitioners.

Organizational Behavior Definition

“Organizational behavior is directly concerned with the
understanding, prediction, and control of human behavior in
organizations.” — Fred Lathan’s.

Organizational behavior is the study of both group and individual

performance and activity within an organization.

This area of study examines human behavior in a work environment and

determines its impact on job structure, performance, communication,
motivation, leadership, etc.

It is the systematic study and application of knowledge about how

individuals and groups act within the organizations where they work. OB
draws from other disciplines to create a unique field.

History and Evolution of Organisational

Behaviour Studies
Origin of Organisational Behaviour can trace its roots back to Max Weber
and earlier organizational studies. The Industrial Revolution is the period
from approximately 1760 when new technologies resulted in the adoption
of new manufacturing techniques, including increased mechanization. The
industrial revolution led to significant social and cultural change, including
new forms of organization. Analysing these new organizational forms,
sociologist Max Weber described bureaucracy as an ideal type of
organization that rested on rational-legal principles and maximized
technical efficiency. In the 1890’s; with the arrival of scientific
management and Taylorism, Organizational Behaviour Studies was
forming it as an academic discipline. Failure of scientific management
gave birth to the human relations movement which is characterized by a
heavy emphasis on employee cooperation and morale. Human Relations
Movement from the 1930’s to 1950’s contributed to shaping the
Organizational Behaviour studies. Works of scholars like Elton Mayo,
Chester Barnard, Henri Fayol, Mary Parker Follett, Frederick Herzberg,
Abraham Maslow, David Mc Cellan and Victor Vroom contributed to the
growth of Organisational Behaviour as a discipline. Herbert Simon’s
Administrative Behavior introduced a number of important concepts to the
study of organizational behavior, most notably decision making. Simon
along with Chester Barnard; argued that people make decisions differently
in organizations than outside of them. Simon was awarded the Nobel Prize
in Economics for his work on organizational decision making. In the 1960s
and 1970s, the field became more quantitative and produced such ideas
as the informal organization, and resource dependence. Contingency
theory, institutional theory, and organizational ecology also enraged.
Starting in the 1980s, cultural explanations of organizations and
organizational change became areas of study. Informed by anthropology,
psychology, and sociology, qualitative research became more acceptable
in OB.

Features of Organizational Behavior

Organizational Behaviour is the study and application of knowledge about
how people, individuals, and groups act in organizations. It does this by
taking a system approach. That is, it interprets people-organization
relationships in terms of the whole person, the whole group, the whole
organization, and the whole social system. Its purpose is to build better
relationships by achieving human objectives, organizational objectives,
and social objectives.

Organizational Behavior is;

 A Separate Field of Study and not a Discipline Only.

 An Interdisciplinary Approach.

 Applied Science.

 Normative Science.

 A Humanistic and Optimistic Approach.

 A Total System Approach..

Objectives of Organizational Behavior
The organizations in which people work have an effect on their thoughts,
feelings, and actions. These thoughts, feelings, and actions, in turn, affect
the organization itself. Organizational behavior studies the mechanisms
governing these interactions, seeking to identify and foster behaviours
conducive to the survival and effectiveness of the organization.

1. Job Satisfaction.

2. Finding the Right People.

3. Organizational Culture.

4. Leadership and Conflict Resolution.

5. Understanding Employees Better.

6. Understand how to Develop Good Leaders.

7. Develop a Good Team.

8. Higher Productivity.

Fundamental Concepts of Organizational

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

 Individual Differences.

 Perception.

 A Whole Person.

 Motivated Behaviour.

 The desire for Involvement.

 The value of the Person.

 Human Dignity.

 Organizations are Social System.

 Mutuality of Interest.
 Holistic Concept.

Main Challenges and Opportunities of

Organizational Behavior
Challenges and opportunities of organizational behavior are massive and
rapidly changing for improving productivity and meeting business goals.

1. Improving Peoples’ Skills.

2. Improving Quality and Productivity.

3. Total Quality Management (TQM).

4. Managing Workforce Diversity.

5. Responding to Globalization.

6. Empowering People.

7. Coping with Temporariness.

8. Stimulating Innovation and Change.

9. Emergence of E-Organisation & E-Commerce.

10.Improving Ethical Behavior.

11.Improving Customer Service.

12.Helping Employees Balance Work-Life Conflicts.

13.Flattening World.

Limitations of Organizational Behavior

Organizational Behavior will not abolish conflict and frustration; it can
only reduce them. It is a way to improve, not an absolute answer to
problems. Organizational Behavior will not make up for our deficiencies,
cannot substitute for poor planning, inept organizing, or inadequate
controls. It is only one of the many systems operating within a larger
social system.

3 major limitations of OB are;

 Behavioural Bias.

 The Law of Diminishing Returns.

 Unethical Manipulation of People.

Key Forces Affecting Organizational Behavior

There is a complex set of key forces that affect organizational behavior
today. These key forces are classified into four areas;

 People.

 Structure.

 Technology.

 Environment.

There is an interaction between people, structure, and technology and

these elements are influenced by the environment.

Contributing Disciplines to the Organizational

Behaviour field
There are some important disciplines in the organizational behavior field
which developed it extensively. Due to the increase in organizational
complexity, various types of knowledge are required and help in many
ways.

The major disciplines are;

 Psychology.

 Sociology.

 Social Psychology.

 Anthropology.

 Political Sciences.

 Economics.
Reasons for Studying Organizational Behavior

Organizational Behavior is concerned with the study of what people do in

an organization and how that behavior affects the performance of the
organization studies put the focus on motivation, leader behavior and
power, interpersonal communication, group structure and processes,
learning, attitude development and perception, change processes,
conflict, work design, and work stress. OB draws heavily from behavioural
and social sciences, most importantly from psychology.

There are several practical reasons, why we study Organizational

Behavior;

1. OB is the study of learning how to predict human behavior and, then, apply it
in some useful way to make the organization more effective. It helps in the
effective utilization of people working in the organization guarantees the
success of the organization.

2. OB helps the managers to understand the basis of motivation and what he

should do to motivate his subordinates.

3. OB helps to maintain cordial industrial relations which help to increase the

overall productivity of the industry.

4. It helps greatly in improving bur inter-personal relations in the organizations.

5. It helps managers apply appropriate motivational techniques in accordance

with the nature of individual employees who exhibit a learning difference in
many respects.

Conclusion
Organizational Behavior is the study and application of knowledge about
how people, individuals, and groups act in organizations. It does this by
taking a system approach.

That is, it interprets people-organization relationships in terms of the

whole person, the whole group, the whole organization, and the whole
social system.

Its purpose is to build better relationships by achieving human objectives,

organizational objectives, and social objectives. OB encompasses a wide
range of topics, such as human behavior, change, leadership, teams, etc.

Organizational behavior has a great impact on individuals and also in

organizations that cannot be ignored. In order to run the businesses
effectively and efficiently, the study of organizational behavior is very
essential.