Welcome to

OB Class
MBS First Semester
Tribhuvan University

1
 Baburam Koirala
(MBS, MA in Economics,One Year B.Ed,TU)
Lecturer,VAC itahari
Banker(manager),Nepal bank Limited
Mailing Address:babukoirala2066@gmail.com
Cell:9841319200

2
Organisational
Behavior

3
Organizational Behaviour (MGT 515)

* Prakash Kr. Gautam 4

 Course Objective
• The major objectives of this course is to
provide students with an in-depth
understanding of behavioral processes and
thereby enable them to function more
effectively in their present or future role as
managers of human resources.

* Prakash Kr. Gautam 5

 Course outline
• Unit 1: Introduction LH 7
• Unit 2: Foundations of Individual Behavior LH 2
• Unit 3: perception and Attribution LH 7
• Unit 4: Personality and Attitudes LH 9
• Unit 5: Positive Organizational Behavior LH 3
• Unit 6: Motivation and Stress Management LH 4
• Unit 7: Groups and Teams in Organizations LH 4
• Unit 8: Leadership LH 5
• Unit 9: Communication and Conflict LH 4
• Unit 10 : Organizational Change and Development LH 3
* Prakash Kr. Gautam 6
 Evaluation Criteria
In-semester Evaluation: 40 Marks
Evaluation Activities Weight in % Marks
In-semester pre-board
examination 40 40 16
Class-room activities Class
presentations, case analysis, group
works etc) 20% 8
Project Assignments 30% 12
Class Attendance 10% 4
Total 100% 40
Minimum Marks to be ELIGIBLE for
final examination 24 (60%)
* Prakash Kr. Gautam 7
 External Evaluation: 60 Marks
Number of Questions and Weight
Evaluation Components Choice (%) Marks
Case Analysis, Situation
Analysis or Extended Problem
Analysis as suitable to the One Compulsory
course. Question(3*10) 30 30
Four analytical Questions
with one choice. (Three
questions of 15 marks each
Problem Solving, Critical to be solved by
Analysis Oriented questions students,3*15) 45 45
Six Short Answer Questions
with one Choice Question
(Five Questions of 5 marks
Concept Oriented Short to be solved by
Answer Questions students,5*5) 25 25
Total Marks 100 10 0
* Prakash Kr. Gautam 8
Pass Marks 60 55
 Basic Textbook
• Luthans, F. Organizational Behavior, New Delhi:
McGraw Hills
• Aswasthappa, K., Organizational Behavior,
New Delhi: Himalayan Publishing House
• Singh, K. Organizational Behavior, New Delhi:
Vikas Publishing House
• KEC Publication,Asmita Publication,Samjhana
Publication as reference books
* Prakash Kr. Gautam 9
 Teaching-Learning Pedagogy
• Lecture,
• Class Discussions,
• Brainstorming, Group discussion
• Article Review & Presentations,
• Self-assessment Exercises,
• Guided Independent Study,
• Quiz,
• Case Study Analysis

* Prakash Kr. Gautam 10

 Introduction to
Organizational
Chapter
Syllabus
Behaviour
Unit: 1 Introduction LH 7
• Concept of Organizational Behavior
• Foundations of OB
• Contextual Perspective of OB: HR Approach; Productivity
Approach; Interactionalism Approach; Contingency
Approach; System Approach
• Environmental Context of OB: Globalization; Diversity;
Ethics
• Theoretical Frameworks: Cognitive Framework;
Behavioristic Framework; Social Cognitive Framework
11
 Concept of Organizational Behavior

• OB is the understanding ,prediction and

management of human behavior in
organization.
• OB is the study of how people behave in an
organization and how their behavior affects
organizational performance.
• OB System consists of three subsystem
namely individuals, group and organizational
subsystem.
 Concept of Organizational Behavior

• OB is the systematic study and careful

application of knowledge about how people-as
individuals and as groups-act within
organizations.
• Individual inputs are personal characteristics,
personality,emotions,values,beliefs,attitudes
and ability.
• Group inputs are size,composition,cohesiveness,
role,status and norms.
 Concept of Organizational Behavior

• Organizational inputs are structure and culture.

• Similarly individual processing includes
perception ,learning ,motivation ;group
processing includes communication,
leadership, power ,conflict , teamwork; and
organizational processing includes HRM, job
design and organizational development.
• Finally OB outcomes are higher productivity,job
satisfaction, low absenteeism, low turnover and
organizational citizenship.
 Concept of Organizational
Behavior (OB)
• Organization: An organization is a consciously
coordinated social or human unit, composed of
two or more people that function on a relatively
continuous basis to achieve a common goal or set
of goals.
• Behaviour: Behaviour includes anything a person
or animal does that can be observed in some way.

15
• Organizational Behaviour (OB): OB
is directly concerned with the
understanding, prediction and
control (management) of human
behaviour in organizations. OB is
human tool for human benefits. It
applies broadly to the behaviour of
people in all types of organizations.
16
 Foundation of OB

Stage 1 Historical Origins (Pre-scientific Management Era)

Stage 2 Scientific Management Era (Early 1900s)

Stage 3 Hawthorne Studies Era (1924 – 1932)

Stage 4 Human Relations Movement Era

Stage 5 Theory 'X' and Theory 'Y' Era

Stage 6 OB in the Modern Era (OB Today)

17
 CHARACTERISTICS OF
ORGANIZATIONAL BEHAVIOR
• Interdisciplinary approach: drawn from different disciplines
• Applied science: human behavioral aspects
• Objective orientation: integrate objectives (individual and
organization)
• Normative and value centered: socially accepted
organizational goals, a matter of values of the people
concerned.
• Optimistic: needs and motivation of people are of high concern
• System approach: total system approach
• People focused: People make all things possible / different by
nature, skill and competence.
• Complexity: concern with person's extremely personal
behavior and exposure
• Dynamism: social systems, dynamics of change, markets,
ORGANIZATIONAL BEHAVIOR 1st ed.
relationships between organizations
(© Biswakarma, and their environments,
2018) SHAMJHANA
employees workingPUBLICATION,
within and KATHMANDU
outside the organization.
 Importance of OB
• Understand Organization and Employees in a
Better Way
• Motivate Employee
• Improve Industrial /Labour Relations
• Prediction and Control of Human Behaviour
• Effective Utilization of Human Resources

19
 Contextual Perspective of OB
• HR Approach
• Productivity Approach
• Interactionalism Approach
• Contingency Approach
• System Approach

20
 CONTEXTUAL PERSPECTIVE OF OB

Human resource approach

• Concerned with growth and
development of peoples
• Consequently, people contribute to the
success of organization
• Role of managers changes from
structuring and controlling to
supporting (supportive approach)
 CONTEXTUAL PERSPECTIVE OF OB

System approach
• Views the organization as a
united, purposeful system
composed of interrelated
parts
• Interpret- whole person,
whole group, whole
organization and whole
social system
• Based on the principle of
 CONTEXTUAL PERSPECTIVE OF OB

Contingency approach
• based on the principle that methods or
behaviors which work effectively in
one situation fail in another Results
differ because situations differ
• encourages analysis of each situation
• system–oriented and more research-
oriented
 CONTEXTUAL PERSPECTIVE OF OB
Interactionalism approach
• Focuses on social interaction in specific situations
• Attempts to explain how people select, interpret and
change various situations
• Highlights on how status affects both individual and
organizational behavior
• Based on cause and effect relationship
• Participatory approach towards organizational goal
 CONTEXTUAL PERSPECTIVE OF OB
Productivity approach
• Value of the ratio of output to input of an organization's
effectiveness
• Optimizing resource utilization
• Better organizational behavior can improve job
satisfaction
• Helps to increase the organizational productivity
• Decisions in organizational behavior basically involve
human, social, and economic issues
• So productivity is recognized
OB System

OB is not like this.

26
1. Inputs
• Individual level variables
• Group level variables
• Organizational level variables
2. Processes
• Individual process variables
• Group process variables
• Organizational process variables
3. Outputs
• Productivity
• Absenteeism
• Turnover
• Organizational citizenship behaviour
• Job satisfaction
4. Feedback
The framework
of
understanding
organizational
behavior
 Environmental Context of OB
• Globalization
• Diversity
• Ethics

29
 ENVIRONMENTAL CONTEXT OF
ORGANIZATIONAL BEHAVIOR

Globalization
• Movement toward economic, financial, trade,
communication or cultural integration.
• Trend toward a unified global economy involving free
trade and a free flow of capital among countries.
• Opening of local and nationalistic prospective
• Emphasizes the need to recognize the contingencies of
effective OB practice
• Application of organizational behavior will increase into
the future
 ENVIRONMENTAL CONTEXT OF
ORGANIZATIONAL BEHAVIOR

Work force diversity

• Composition of the workforce is changing
• Similarities and differences among employees in work
places (age, cultural background, physical abilities and
disabilities, race, religion, sex and sexual orientation).
• Managing employees from different backgrounds are more
challenging and risky
 ENVIRONMENTAL CONTEXT OF
ORGANIZATIONAL BEHAVIOR
Ethics
• Deals with what is good and bad and with moral duty and
obligation
• Cultural influence ethical behavior (family, friends,
neighbors, education, religion and media)
• Organizational influences (ethical codes, role models,
policies and practices and reward and punishment systems)
• The factors determining ethical behavior are:
• Individuals and groups
• Cultural
• Organizational
• External environment
 Levels of OB Analysis
(Scope of OB)

Organizational
Organization systems level processes

Group/team
Group level processes

Individual level Individual

processes

33
Contributing Disciplines to the
Field of OB

34
• Psychology
• Social psychology
• Sociology
• Anthropology
• Other Social Sciences
 Theoretical Frameworks of OB

• Cognitive Framework
• Behavioristic Framework
• Social Cognitive Framework
OOOO

36
THEORETICAL FRAMEWORK OF OB

Cognitive frameworks
• Cognitive is relating to the mental processes of perception
• Connected with thinking or conscious mental process of
acquiring knowledge/through thought, experience and the
senses
• Based on the concept of expectancy, demand and intention of
the human being
• Cognition precede behavior and constitute input into the
person's thinking, perception, problem solving and
information processing.
• Strong interrelated subject as perception, personality and
attitudes, motivation, behavioral decision making and goal
THEORETICAL FRAMEWORK OF OB

Behavioristic framework
• Based on observable behavior and environmental variables
• Behavior is understood in terms of stimulus and response
(S-R)
• The stimulus-response relationship explains the physical
reflexes in human beings.
• Behaviorism is truly psychological approach which
emphasizes scientific and objectives methods of
investigation.
• It states all behaviors are learned through interaction with
the environment.
• These include insights into learning, language
development, which have all been explained in terms of
THEORETICAL FRAMEWORK OF OB

Social cognitive framework

• Social cognitive theory (SCT) develop an overall model of
organizational behavior
• It recognizes the importance of behaviorisms contingent
environmental consequences
• States that when people observe a model performing a
behavior and the consequences of that behavior. (i) Personal
(individual high-low self-efficacy)
• Behavioral (response an individual
• Environmental (suspects of environments)
• Importance of behaviorisms contingent environmental
consequences
THEORETICAL FRAMEWORK OF OB

Social cognitive framework