Organisational behaviour

Unit 1: Introduction

Organizational behavior (OB) refers to the study of how people interact within groups and
organizations. It encompasses the analysis of individuals, teams, and structures within a
workplace, focusing on factors that influence behavior, attitudes, and performance in
organizational settings. OB draws from multiple disciplines like psychology, sociology, and
management, with the aim of improving workplace dynamics and achieving organizational
goals.

Key areas of study in organizational behavior include:

1. Individual Behavior: This looks at factors that influence how people behave at work,
such as motivation, perception, personality, learning, and attitudes. It includes
theories like Maslow’s Hierarchy of Needs and Herzberg’s Two-Factor Theory.
2. Group Behavior: This examines how people behave in teams, focusing on dynamics
like communication, leadership, group decision-making, conflict, and cohesion. It also
involves understanding roles, norms, and team development.
3. Organizational Culture: The shared values, beliefs, and norms within an
organization that shape how employees interact and perform. Organizational culture
can impact productivity, employee satisfaction, and retention.
4. Leadership and Management: OB explores different leadership styles, such as
transformational and transactional leadership, and how leaders influence team
behavior and organizational outcomes.
5. Decision-Making: The study of how individuals and groups make decisions,
including understanding biases, rationality, and problem-solving techniques.
6. Motivation: Understanding what drives individuals to perform in the workplace. This
includes intrinsic and extrinsic motivation theories, such as the Self-Determination
Theory and Expectancy Theory.
7. Power and Politics: Examines how power dynamics and political behaviors affect
organizational structure, decision-making, and resource allocation.

By understanding organizational behavior, companies can design better work environments,

increase productivity, and improve employee well-being. Effective management of OB can
lead to improved organizational performance, better leadership, and higher employee
satisfaction.

Management, roles, skills, and activities

In management, roles, skills, and activities are key elements that define a manager’s
effectiveness and ability to drive the success of an organization. Let’s break these down:

Management Roles (According to Henry Mintzberg)

Henry Mintzberg identified ten managerial roles, grouped into three categories: interpersonal,
informational, and decisional.
 1. Interpersonal Roles:
o Figurehead: As a symbolic leader, a manager represents the organization in
formal and ceremonial duties.
o Leader: Directs and motivates employees, sets the tone for the workplace
culture, and provides guidance for achieving organizational goals.
o Liaison: Serves as a bridge between different individuals or groups, both
inside and outside the organization, to build relationships and facilitate
communication.
2. Informational Roles:
o Monitor: Gathers and analyzes information from within the organization and
from the external environment to stay informed.
o Disseminator: Shares important information with team members or other
stakeholders.
o Spokesperson: Represents the organization’s interests in external
communications, conveying information to stakeholders, media, or the public.
3. Decisional Roles:
o Entrepreneur: Seeks opportunities for innovation and improvement, initiates
changes, and takes calculated risks to drive growth.
o Disturbance Handler: Deals with conflicts, crises, or unexpected issues that
arise within the organization or the external environment.
o Resource Allocator: Decides where to allocate resources such as time,
money, and personnel to ensure organizational goals are met.
o Negotiator: Engages in discussions and negotiations with other parties (e.g.,
clients, suppliers, employees) to secure favorable outcomes.

Management Skills (According to Robert Katz)

Robert Katz identified three essential management skills that all managers need, regardless of
their position or level in the organization:

1. Technical Skills:
o The knowledge and expertise required to perform specific tasks. These skills
are especially important for lower-level managers who deal with hands-on
work and day-to-day operations.
2. Human Skills:
o The ability to work effectively with people. It involves communication,
empathy, emotional intelligence, conflict resolution, and understanding the
needs and motivations of others. These skills are important at all levels of
management but become more critical as you move to higher levels.
3. Conceptual Skills:
o The ability to think critically and strategically, to see the big picture, and to
understand how different aspects of the organization and external factors are
interrelated. These skills are especially vital for top-level managers who need
to make decisions that affect the entire organization.

Management Activities

Managers engage in various activities to achieve organizational goals. Some common

management activities include:
 1. Planning: Setting objectives, developing strategies, and outlining actions for
achieving those objectives. Planning involves both short-term and long-term goals.
2. Organizing: Defining roles and responsibilities, structuring teams, allocating
resources, and determining the work processes necessary for the execution of plans.
3. Leading: Motivating and guiding employees, resolving conflicts, and ensuring
alignment with organizational goals. Leadership is also about communication and
inspiring people to work toward shared objectives.
4. Controlling: Monitoring performance to ensure that goals are being met and taking
corrective actions if necessary. This involves setting performance standards,
measuring outcomes, and making adjustments when necessary.
5. Decision-Making: Constantly making decisions related to resource allocation,
employee performance, and strategic direction. Good decision-making is based on
accurate information, analysis, and insight.
6. Coordinating: Ensuring that various parts of the organization work together
effectively. Coordination is about ensuring that tasks and processes are aligned across
different departments or teams.
7. Communication: Sharing information with stakeholders, both internally (with
employees) and externally (with clients, investors, etc.). Communication is vital for
the effective implementation of decisions and strategies.

By mastering these roles, skills, and activities, managers can guide organizations effectively,
ensuring smooth operations, innovation, and long-term success.

Discipline that contribute to Organisation behaviour

Organizational Behavior (OB) is an interdisciplinary field that draws from a variety of academic
disciplines to understand and explain how individuals and groups behave within organizations. These
disciplines contribute theories, methods, and perspectives that enrich our understanding of human
behavior in the workplace. The main disciplines that contribute to Organizational Behavior are:

1. Psychology
 Contribution: Psychology is one of the foundational disciplines for OB. It provides insights
into individual behavior, cognition, emotion, and motivation. Key concepts from psychology,
such as personality theories, learning processes, perception, and attitudes, are applied in OB
to understand how individuals behave and react in organizations.
 Examples: Motivation theories (Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor
Theory), personality assessments (Big Five Personality Traits), and stress management.

2. Sociology

 Contribution: Sociology examines how individuals are influenced by the social structures,
cultures, and norms within groups and society. OB utilizes sociological concepts such as
socialization, group dynamics, organizational culture, and social networks to explain how
organizations function as social systems.
 Examples: Group behavior (e.g., conformity, roles, and norms), organizational culture, and
social networks in the workplace.

3. Social Psychology
  Contribution: Social psychology combines elements of psychology and sociology, focusing on
how individuals’ behaviors, thoughts, and feelings are influenced by others in a social
context. It contributes to OB by exploring topics such as group behavior, leadership,
communication, and interpersonal relationships.
 Examples: Leadership styles, conflict resolution, group decision-making, and perception
biases.

4. Anthropology

 Contribution: Anthropology studies human behavior from a cultural and evolutionary

perspective. In OB, anthropology helps explain how cultural differences, organizational
rituals, and practices shape behavior. It also sheds light on organizational development and
the impact of cultural diversity on organizational success.
 Examples: Cross-cultural studies, organizational rituals, and understanding of cultural
influences on work behaviors (e.g., power distance, individualism vs. collectivism).

5. Economics

 Contribution: Economics focuses on resource allocation, decision-making, and incentive

structures. OB applies economic principles to understand organizational structures,
compensation systems, and the incentives that drive employee performance. It also explores
issues like labor markets and the economics of organizational change.
 Examples: Motivation through compensation and reward systems, economic theories of
incentives, and performance-based pay.

6. Political Science

 Contribution: Political science contributes to OB by exploring power dynamics, authority

structures, and decision-making processes in organizations. It helps in understanding
organizational politics, power struggles, and how decisions are made in environments with
competing interests.
 Examples: Power and politics in organizations, decision-making in the presence of conflicts,
and influence tactics.

7. Management Studies

 Contribution: Management studies directly contribute to OB by providing frameworks and

practices for managing people within organizations. It offers insights into leadership,
strategy, organizational behavior management, and human resources practices.
 Examples: Leadership theories, organizational change models, human resource
management (HRM), and strategic management practices.

8. Philosophy

 Contribution: Philosophy offers a framework for understanding ethics, morality, and

decision-making in organizations. It helps OB by providing ethical guidelines for managers
and leaders, particularly when faced with dilemmas involving fairness, justice, and social
responsibility.
 Examples: Ethical decision-making, corporate social responsibility (CSR), and business ethics.
9. History

 Contribution: History provides valuable insights into the evolution of organizations,

management practices, and leadership styles. It helps OB by understanding how historical
events, cultural shifts, and changes in technology have shaped organizational behavior and
workplace norms over time.
 Examples: Understanding the historical evolution of labor unions, organizational structures,
and changes in work practices (e.g., the industrial revolution’s impact on work behavior).

10. Engineering (Industrial and Organizational Engineering)

 Contribution: Engineering disciplines, particularly industrial engineering, contribute to OB by

focusing on optimizing processes and improving work efficiency. This includes time
management, task analysis, ergonomics, and system design to create a more effective work
environment.
 Examples: Work design, human factors engineering, process improvement, and optimization
of workplace productivity.

Opportunities for organisational behaviour

Organizational Behavior (OB) offers many opportunities for individuals, teams, and organizations to
improve effectiveness, job satisfaction, and overall workplace culture. By applying OB principles,
organizations can better understand and manage human behavior, leading to positive changes. Here
are some key opportunities for Organizational Behavior:

🔹 1. Improving Employee Productivity

 OB helps managers understand what motivates employees and how to design jobs and
environments that maximize performance.
 Tools like motivation theories, performance management, and job design can enhance
individual and team productivity.

🔹 2. Enhancing Job Satisfaction

 Understanding employees' needs, perceptions, and expectations allows organizations to

create a more fulfilling work environment.
 Higher job satisfaction leads to reduced absenteeism, lower turnover, and better employee
morale.

🔹 3. Promoting Innovation and Change

 OB encourages adaptive thinking, creativity, and innovation by studying how people respond
to change.
  It helps managers implement change effectively by understanding resistance and using
strategies to manage it.

🔹 4. Improving Leadership and Management

 OB provides insights into effective leadership styles and how to influence and inspire
employees.
 It supports the development of leadership training and succession planning.

🔹 5. Effective Teamwork and Collaboration

 OB examines group dynamics, helping organizations build stronger, more cohesive teams.
 It promotes collaboration, conflict resolution, and better communication within and
between teams.

🔹 6. Better Decision-Making

 OB helps in understanding decision-making processes, biases, and groupthink.

 Organizations can improve the quality of decisions by fostering critical thinking and diverse
viewpoints.

🔹 7. Creating a Positive Organizational Culture

 By analyzing organizational values, beliefs, and behaviors, OB supports the development of a

strong, ethical, and productive culture.
 A strong culture increases engagement and loyalty.

🔹 8. Managing Workforce Diversity

 OB provides tools for managing and embracing diversity and inclusion in the workplace.
 Diverse teams often lead to better creativity and broader perspectives.

🔹 9. Conflict Management

 OB helps identify sources of conflict and offers strategies for conflict resolution.
 Promotes a more peaceful and cooperative work environment.
🔹 10. Globalization and Cross-Cultural Management

 OB is key to managing international teams and understanding cultural differences.

 It supports organizations in operating effectively in a global business environment.

🔹 11. Employee Development and Learning

 OB encourages continuous learning and skill development.

 Helps in identifying training needs and designing effective development programs.

🔹 12. Ethical and Social Responsibility

 OB helps organizations make ethical decisions and engage in socially responsible practices.
 Builds trust and a positive image with stakeholders and the public.

⚖️ Workplace Ethics

Ethics in the workplace refers to the moral principles that guide behavior, decision-making, and
relationships in a professional setting.

🔑 Core Ethical Principles:

1. Integrity
o Doing the right thing, even when no one is watching.
o Being honest, fair, and consistent.
2. Accountability
o Taking responsibility for actions and outcomes.
o Owning up to mistakes and learning from them.
3. Respect for Others
o Treating colleagues, clients, and stakeholders with fairness and dignity.
o Avoiding discrimination, harassment, or bullying.
4. Transparency
o Being open about processes, decisions, and policies.
o Avoiding deception or hidden agendas.
5. Confidentiality
o Respecting privacy and protecting sensitive information.
o Especially important in HR, finance, and healthcare sectors.
6. Fairness and Justice
o Equal treatment and opportunity for everyone.
o Decisions based on merit, not favoritism or bias.
7. Adherence to Laws and Policies
o Following company rules and legal regulations.
o Avoiding unethical practices like fraud or corruption.
✅ Benefits of a Positive Work Environment + Strong Ethics:

 Increased employee engagement and loyalty

 Reduced turnover and absenteeism
 Better teamwork and collaboration
 Higher morale and motivation
 Stronger reputation and trust from customers/clients
 Lower risk of legal issues and conflicts