Introduction to Organizational Behaviour

Introduction to Organizational Behaviour

• Organizational behaviour (OB) studies the behaviour of people within organizations.
• Organizations themselves do not behave; OB focuses on the impact of individuals, groups, and structure on organizational behaviour.
• OB uses scientific methods, rather than assumptions or intuition, to gather information.

Definition of OB

• OB is concerned with understanding, producing, and controlling human behaviour in organizations (Luthans).
• OB investigates the impact of individuals, groups, and structures on organizational behaviour with the goal of improving organizational efficiency (Robbins and Stephens).

Characteristics of OB

• Behavioural approach to management: OB uses a behavioral approach to understanding how people act and react in the workplace
• Cause and effect relationships: OB seeks to identify cause-and-effect patterns in human behavior within organizations.
• Branch of the social sciences: OB draws upon sociology, anthropology, and psychology to inform its understanding of human behavior. It also uses economics, technology, and engineering.
• Three levels of analysis: OB examines individual, group, and organizational levels of behavior.
• Science and art: OB combines scientific research with practical application and art.
• Rational thinking: OB necessitates a rational approach to solving organizational problems connected to human behaviour.
• Beneficial to both organisations and individuals: OB contributes to increased organizational effectiveness and individual well-being.

Need and Significance of OB

• Provides a roadmap for organizational success
• Understands individuals better
• Improves delegation
• Influences organizational events
• Maintains cordial industrial relations
• Ensures effective management across all sectors.

OB and Other Fields

• OB draws on Psychology, Sociology, Anthropology, Political Science, Economics, Technology, and Engineering to enhance its understanding.

Models of Organizational Behaviour

• Autocratic Model: This model prioritizes the boss's authority. Employees are directed, persuaded, and pushed towards performance. Success is often specific to certain situations, although this approach may not be applicable in today's legal environments.
• Custodial Model: This model developed from the failings of the autocratic model, prioritizing economic rewards and benefits for employees. Employees depend on the organization and give passive cooperation. The drawback is that it depends solely on material rewards to motivate employees.
• Supportive Model: This model stems from supportive relationships and leadership, with an emphasis on worker responsibility. Management actively supports employee performance, focusing not just on basic needs but also on psychological fulfillment.
• Collegial Model: This model views workers as partners in the organization, promoting team spirit. It is well-suited to collaborative environments like research labs and focuses on job satisfaction, commitment, and involvement.

Other Models

• Normative Models: - Models based on norms and standard procedures.
• Empirical Models: Models based on observed data and research findings.
• Ecological Models: Models that take into consideration the interplay between the environment and the organization.
• Non-ecological Models: Models that do not explicitly account for external environmental factors.
• Ideographic Models: Models that examine individuals' unique characteristics.
• Nomothetic Models: Models that identify general principles applicable across various individuals, groups and organizations.

Hawthorne Studies

• A series of experiments focused on the relationship between work environments and productivity, which had significant implications for organizational behavior theory.
• Key experiments included illumination experiments, relay assembly experiments, experiments on interviewing workers, and the bank wiring experiments.

Learning Organizations

• Continuously adapt and change
• Old orders are replaced by new ones.
• Managers adopt a fresh perspective on employees and the environment to improve learning.

Key Elements of Learning Organizations

• System thinking
• Personal mastery
• Mental models
• Building a shared vision
• Team learning

Creating the Learning Organization

• Developing capabilities for scanning the environment
• Capabilities for self-reflection
• Dissemination of information
• Capabilities to act and experiment
• Cultivating diversity and receptivity to new ideas
• Mechanisms to unlearn old knowledge
• Personal efficacy

Need for Learning Organizations

• Necessary for success in a knowledge-based economy
• Managing intense global competition
• Adapting to technological changes
• Coping with fragmented markets
• Creating a people-based work system

Challenges and Opportunities for OB

• Managerial challenges: A need for improved managerial practices
• Work-place issues: Issues facing employees, including work-life balance and job security.
• Organizational challenges: Issues faced by the organization as a whole.
• Global challenges: Issues connected to international competition and relations, including globalization and cultural diversity.
• Environmental challenges: Includes issues like environmentalism, sustainability, and managing ecological challenges, pollution, and personnel policies.

Organizational Goals

• Strategically set objectives outlining expected results and guiding employee efforts.
• Provide direction for employees
• Three types:
  • Strategic: Top management focused
  • Tactical: Middle management focused on achieving the strategic goals
  • Operational: Lower-level managers focused on achieving tactical goals.

Nature of Organizational Goals

• Enable organizational growth
• Improve company performance and achieve targets
• Generate company profits.