Syllabus UNIT- III:

Introduction to Organizational Behaviour: Organizational Behaviour- Definition; Historical

Background; Nature, Scope and Importance; Linkages with other Social Sciences; Approaches-
Human Resource, Contingency, Productivity and Systems approach; Models- Autocratic, Custodial,
Supportive, Collegial and System Model.
ORGANIZATIONAL BEHAVIOUR
Organizational Behaviour (OB) is the study of how individuals, groups, and structures affect
behaviour within organizations. Its primary aim is to apply such knowledge toward improving
an organization’s effectiveness. OB encompasses a wide range of topics, including motivation,
leadership behaviour, communication, group dynamics, organizational culture, and change
management. It helps in understanding and predicting human behaviour in a workplace setting,
which can lead to more effective team performance, better decision-making, and improved
employee satisfaction. By analysing both internal and external factors, OB provides insights
that help leaders manage their teams more effectively and fosters a work environment
conducive to productivity and innovation.
Concept of Organisational Behaviour
Organisational Behaviour is based on several fundamental principles that relate to the nature
of people and organizations. The fundamental principles of OB include:
1. Individual Uniqueness: Stemming from psychological principles, this concept
acknowledges that from birth, each person is distinct, shaped by unique experiences that
further differentiate them from others. Individuals vary across multiple dimensions,
including intelligence, physical attributes, personality, learning abilities, and
communication skills. It is the individual who bears responsibility and makes decisions,
while a group’s power is latent until its members act in concert.
2. The Entirety of a Person: This notion suggests that an organization hires not merely the
skills of an individual but also their preferences, biases, and personal history. One’s
domestic life is intertwined with their professional existence, necessitating that
organizations provide a conducive work environment that promotes both professional and
personal growth and fulfilment.
3. Causality in Behaviour: Unseemly behaviour in an individual often has underlying causes,
which could range from domestic issues to challenges in punctuality. When such behaviour
surfaces, it is incumbent upon managers to discern the root cause and address it effectively.
4. Respect for Individual Dignity: Every person, irrespective of their position, deserves to be
treated with respect and dignity. This principle emphasizes the importance of recognizing
and valuing each job, thereby fostering the improvement of individual aspirations and
capabilities. It stands in opposition to the notion of treating employees merely as economic
instruments.
5. The organization as a social entity: Organizations function as complex social systems, a
concept derived from sociological studies. These systems are subject to both social and
psychological norms that dictate organizational activities. Within an organization, there
exists a blend of formal and informal social structures, emphasizing the organization’s
capacity for dynamic evolution over maintaining rigid relationships. Each component
within this system relies on the others for its function.
6. Shared interests among organizational participants: The principle of mutual interest
underscores the symbiotic relationship between individuals and organizations.
Organizations come into existence and persist through a shared interest among their
members. Individuals join organizations to fulfil their personal ambitions, while
organizations depend on individuals to achieve their collective goals. A lack of shared
 interest can lead to disarray within the group. Conversely, a unified purpose galvanizes
members to collaboratively address organizational challenges rather than casting blame.
7. Holistic concept: The holistic approach to organizational behaviour synthesizes the
aforementioned six principles into a comprehensive framework. This perspective
examines the interplay between individuals and organizations, considering the full
spectrum of personal, group, organizational, and societal dimensions. It involves taking
into account the diverse viewpoints within an organization to grasp the factors shaping
behaviour. Rather than isolating specific incidents or issues, this approach evaluates them
within the broader context that they influence and are influenced by.
HISTORICAL DEVELOPMENT OF ORGANIZATIONAL BEHAVIOUR
The historical development of Organizational Behaviour (OB) can be traced through several
key phases. Here’s a timeline of the key events in the historical development of Organizational
Behaviour (OB):
1776 – Adam Smith publishes The Wealth of Nations, discussing division of labor and its
impact on productivity.
1813 – Robert Owen, an early advocate for worker rights, implements better working
conditions in his textile mills, focusing on the well-being of workers.
Late 19th century – The Scientific Management Era emerges, led by Frederick Taylor,
emphasizing efficiency, task specialization, and the development of time-and-motion studies.
1916 – Henri Fayol introduces General and Industrial Management, which outlines
administrative principles like planning, organizing, leading, and controlling.
1920s – Max Weber develops the concept of bureaucracy, advocating for hierarchical structure,
rules, and authority to improve organizational efficiency.
1924-1932 – The Hawthorne Studies at Western Electric’s Hawthorne Plant, led by Elton
Mayo, shift attention to the social and psychological aspects of work, highlighting the
importance of human relations.
1930s-1940s – The Human Relations Movement gains momentum, focusing on the role of
motivation, leadership, and group dynamics in organizations.
1943 – Abraham Maslow introduces the Hierarchy of Needs, influencing the understanding of
employee motivation and personal development in the workplace.
1960 – Douglas McGregor proposes Theory X and Theory Y, which contrast authoritarian and
participative styles of management.
1960s-1970s – Development of Systems Theory and Contingency Theory, emphasizing that
organizations are complex systems, and effective management depends on situational factors.
1980s-1990s – Rise of interest in organizational culture, with thinkers like Edgar Schein
exploring the role of shared values and norms in shaping behavior within organizations.
2000s-Present – OB continues to evolve, integrating trends like globalization, technology,
diversity, ethics, and sustainability into organizational practices, adapting to modern work
environments.
This timeline captures the major milestones in the development of Organizational Behaviour,
showing how it evolved from early industrial theories to a multifaceted, dynamic field.
NATURE OF ORGANISATIONAL BEHAVIOUR
1. Diversity: Organizational behaviour recognizes the unique differences among
individuals, valuing diversity in backgrounds, skills, and perspectives as a source of
strength and innovation within a company.
2. Adaptability: It emphasizes the need for organizations to be adaptable, allowing them
to respond effectively to changes in the market, technology, and workforce dynamics.
3. Motivation: Understanding what motivates employees is crucial in Organisational
Behaviour, as it directly influences productivity, job satisfaction, and retention rates
within an organization.
4. Leadership: Effective leadership is a cornerstone of Organisational Behaviour, as
leaders shape the culture, set the vision, and guide employees towards achieving
organizational goals.
5. Communication: Clear and open communication channels are vital for the smooth
operation of an organization, facilitating collaboration and minimizing
misunderstandings.
6. Productivity: Organisational Behaviour aims to enhance productivity by optimizing
the work environment, ensuring that employees have the resources and support they
need to perform at their best.
7. Well-being: Employee well-being is a focus area in Organizational Behaviour, with the
understanding that a healthy work-life balance contributes to better performance and
lower turnover.
8. Innovation: Encouraging innovation is part of Organizational Behaviour, as it drives
growth and keeps organizations competitive in their respective industries.
9. Ethics: Organizational Behaviour upholds ethical standards and practices, ensuring
that organizations operate with integrity and respect for all stakeholders.
IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR
The Role of organizational behaviour is multifaceted and crucial for the success of any
organization. Here are some key points highlighting its importance:
1. Performance Improvement: Organizational Behaviour helps in identifying ways to
increase productivity and efficiency, leading to better performance outcomes for both
individuals and the organization.
2. Employee Satisfaction: By understanding the needs and motivations of employees,
Organizational Behaviour contributes to creating a work environment that enhances job
satisfaction and employee retention.
 3. Leadership Development: Organizational Behaviour provides insights into effective
leadership styles and practices, enabling the development of leaders who can inspire
and guide their teams.
4. Change Management: It equips organizations with the tools to manage and adapt to
change, ensuring resilience and flexibility in a dynamic business landscape.
5. Conflict Resolution: OB offers strategies for resolving interpersonal and group
conflicts, fostering a harmonious workplace.
6. Organizational Culture: It plays a significant role in shaping and maintaining a
positive organizational culture, which is essential for long-term success.
7. Team Dynamics: Organizational Behaviour studies how teams work and interact,
which is vital for building strong, collaborative teams that can achieve collective goals.
8. Communication Enhancement: It improves communication within an organization,
ensuring that information flows effectively between different levels and departments.
9. Decision-Making: OB aids in the decision-making process by providing a better
understanding of human behaviour and organizational dynamics.
10. Innovation Encouragement: It encourages innovation by creating an environment
where new ideas are valued and employees feel empowered to share their creativity.
LINKAGES WITH OTHER SOCIAL SCIENCES
Organisational behaviour is an interdisciplinary approach as it has borrowed concepts, theories,
models and practices of physical sciences as well as social sciences. The main features of
organisational behaviour are primarily based on behavioural sciences. The organisational
behaviour is studied in relation to psychology, sociology, political science, anthropology,
economics, science, technology and environmental sciences. OB is, in fact, called an applied
behavioural science.
The relationship of OB with other fields of study is depicted in the following diagram:
Psychology:
The term ‘psychology’ is derived from the Greek World ‘Psyche’ which means ‘soul’ or ‘spirit’.
Organisational behaviour studies human behaviour which is concerned mainly with the
psychology of the people. Psychology, especially, industrial or organisational psychology is the
greatest contributor to the field of organisational behaviour. Psychologists study behaviour and
industrial or organisational psychologists deal specifically with the behaviour of people in
organisational settings.
Psychology as a science, measures, explains and suggests the appropriate human behaviour.
Individual behaviour is governed by perception, learning and personality. Industrial
psychology understands people’s behaviour at work, particularly under different working
conditions, stress, conflicts and other related behaviour of employees. Job satisfaction,
performance appraisals and reward systems are measured and directed with the use of
psychological theories and models.
Group behaviour in the organisations is studied, researched and molded with the use of theories
of Social Psychology. The communication system in the organisation, attitudes of employees,
their needs etc. as a subject of social psychology have a great influence on behaviour. Thus,
many of the concepts which interest psychologists e.g. learning, motivation etc. are also central
to the students of organisational behaviour. We can conclude that the contribution of
psychology in the field of organisational behaviour is quite significant.
Sociology:
Sociology also has a major impact on the study of organisational behaviour. Sociology makes
use of scientific methods in accumulating knowledge about the social behaviour of the groups.
Sociologists study social systems such as a family, an occupational class, a mob or an
organisation. It specifically studies, social groups, social behaviour, society, customs,
institutions, social classes, status, social mobility, prestige etc.
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It studies the behaviour of the people in the society in relation to their fellow human beings.
Sociology contributes to organisational behaviour through its contribution to the study of
interpersonal dynamics like leadership, group dynamics, communication etc. Socialisation is
accepted for molding the behaviour of people where the capacities of individuals to learn and
respond to social systems, values, norms and social roles are accelerated and appreciated. The
attitudes and behavioural patterns of individuals and groups are greatly influenced by
socialisation.
Anthropology:
Anthropology is concerned with the interactions between people and their environment,
especially their cultural environment. Culture is a major influence on the structure of
organisations as well as on the behaviour of people within organisations. ‘Anthropo’ is a Greek
word which means ‘man’ and ‘logy’ means ‘Science’. Aristotle defined anthropology as a
science of man’s self understanding. It particularly studies civilization, forms of cultures and
their impact on individuals and groups, biological features of man and evolutionary pattern,
speech and relationship among languages.
Anthropology contributes in understanding the cultural effects on organisational behaviour,
effects of value systems, norms, sentiments, cohesion and interaction. Socialization involves
spreading of values and missions of organisation among employees. Anthropology influences
the employees’ behaviour through motivation, interaction, goal setting, decision making,
coordinating and controlling.
Political Science:
In recent times, political science has also started interesting the organisational behaviourists.
Political Science is usually, thought of as the study of political systems. But political scientists
are interested in how and why people acquire power, political behaviour, decision making,
conflict, the behaviour of interest groups and coalition formation. These are also major areas
of interest in organisational behaviour.
Political parties and Government directly intervene in many activities of the organisation.
Specific principles of political science are observed in organisational behaviour for delegation
of authority and responsibility, conflict resolution and stress management.
In organisations, people strive for power and leadership recognition. Political Science helps in
the management of men in an effective and efficient manner. Political perspectives and
government policies are thoroughly analyzed for molding and modifying the behaviour of
people, because they greatly influence the organisation. The law and order of the country
influence the people at work.
Economics:
Economists study the production, distribution and consumption of goods and services. Students
of organisational behaviour share the economist’s interest in such areas as labour market
dynamics, productivity, human resource planning and forecasting, and cost benefit analysis.
The economic conditions of a country have long lasting impact on organizational behavior. If
psychological and economic expectations of employee are met, they are satisfied and become
high performers. Economic systems include financial, commercial and industrial activities
which have greater influences on the behaviour of the people. The consumption pattern in
society monitors the behaviour of employees. Consumption oriented society witnesses a
different employee behaviour from that of a production-oriented society.
Science:
Science is systematized knowledge. The scientific methods attempt to produce information that
is objective in the sense that it is certifiable and independent of a person’s opinions or
preferences. Scientific method is the backbone of organisational behaviour. Organisational
behaviour is based on the systematized study of facts, behaviour, their relationships and
predictions.
New scientific methods viz. observation of facts and behaviour, explanation of facts and
relationships and coming to conclusion thereon have become important bases of the study of
organisational behaviour. The cause and effect relationship is also established in organisational
behaviour like that of science. The verification of the relationship and its quantification has
added to the importance of organisational behaviour.
It becomes relatively easy to predict and mould the people at work. A researcher, in the field of
OB investigates new facts, tests theories, hypothesis and models. Personal bias, superfluous
conclusions and whimsical approaches are avoided in the study. A systematized form of inquiry
is used for the study of various problems.
Technology:
The level of technological development affects the behaviour of the employees. Modern age is
the age of computerization. It has come within the framework of the model of organisational
behaviour. The study of technological development is becoming essential for understanding
the organisational behaviour, because people are influenced by the technological development.
Human behaviour relations and environments develop as a result of technological innovations.
Technology changes consumer behaviour, production activities, distribution and storage
activities. To cope up with the technological development people have to become educated
and/or technically skilled. They should have to be responsibility conscious and development
oriented. Unskilled or irresponsible will have no place in the modern innovative age. Thus,
technological development leads to effective work behaviour, improved organisational culture
and helpful work environment.
Engineering:
Engineering also influences the study of organisational behaviour. Some topics are common to
engineering as well as organisational behaviour e.g. work measurement, productivity
measurement, work flow analysis, work design, job design and labour relations. In fact,
organisational behaviour is dependent on engineering for these technical jobs.
Medicine:
Nowadays, medicine has also come in connection with the study of human behaviour at work.
Stress is becoming a very common problem in the organisations as well as in the people
working in the organisations. Research shows that controlling the causes and consequences of
stress in and out of organisational settings, is important for the well being of the individual as
well as the organisations. Medicine helps in the control of stress as well as stress related
problems.
Thus, it can be concluded that organisational behaviour has an interdisciplinary focus. It draws
from a variety of other fields and attempts to describe behaviour as opposed to prescribing how
behaviour can be changed in consistent and predictable ways.
ORGANISATIONAL BEHAVIOUR APPROACHES
1) Human Resources approach
Human resources approach focuses on the well-being of the employees manage their
organisational behaviour. It does so in the following ways:
a) People-centric: This approach views employees as valuable assets. Their well-being,
motivation, and development drive organisational success.
b) Employee satisfaction: Happy employees lead to higher productivity and better outcomes.
c) Training and development: Invest in your people and you will be rewarded by their
performance.
2) Contingency approach
This approach focuses on adaptability, it allows room for flexibility to accommodate any
deviations. It focuses on the following:
a) Context matters: There’s no one-size-fits-all solution. The best approach depends on the
situation.
b) Adaptability: Organisations must adapt to external factors—like chameleons changing
colours.
c) Flexible leadership: Leaders adjust their style based on the context.
3) Productivity approach
This approach focuses on getting the job done. It does so by focusing on:
a) Efficiency obsession: Productivity is the holy grail. Streamline processes, eliminate waste,
and optimise resources.
b) Time management: Time is money. Use it wisely.
c) Performance metrics: Measure, analyse, improve.
4) System approach
This approach is based on the core belief of systems and how it helps functionality. It focuses
on:
a) Holistic view: Organisations are interconnected systems. A change in one part affects the
whole.
b) Feedback loops: Like a thermostat, systems self-regulate. Monitor inputs, outputs, and
feedback.
c) Balance: Balance conflicting goals—profit vs. social responsibility, short-term vs. long-
term gains.
5) Inter-Disciplinary approach
This is a mixed-matched approach that adapts the learnings of different disciplines to create a
whole new approach. Here is how:
a) Blend of disciplines: Mix psychology, sociology, economics, and more.
b) Complexity: Organisations are intricate ecosystems. Understand the interplay of variables.
c) Innovation: Fresh ideas emerge at the intersection of disciplines.
FIVE MODELS OF ORGANIZATIONAL BEHAVIOR

1. Autocratic Model
The ‘autocratic’ means authorization. The autocratic model of organizational behaviour ensures
a hierarchical structure with a centralized decision-making process by the authorities in an
organization.
In this model, the power and control lie with the top management, and subordinates are
expected to follow instructions without question. Communication flows predominantly from
the top down, and there is limited employee participation in decision-making processes.
2. Custodial Model
Custodial means responsibility, the custodial model is one of the most effective types of
organizational behaviour where employees feel secure and get benefits through numerous aids
like Health benefits, generous payoffs, bonuses, occasional informal meets, etc. There are
various ways in this model to keep the employees hooked to the organization.
The primary motivation and organizational support create a sense of loyalty and dependence
on the organization, it increases the employee retention rate. However, this model may limit
employee autonomy and intrinsic motivation.
3. Supportive Model
A supportive model is somewhat encouraging. Through this model organizations can encourage
the employee, to work in a healthy work environment. In this model, the organization provides
motivation to employees, and prioritize their view in any decision-making process. It promotes
employee well-being and a supportive work environment with cordial manager-employee
relations leading to employee engagement, job satisfaction, personal growth, and company
productivity.
This model aims to enhance employee motivation, job satisfaction, and performance.
4. Collegial Model
The study of organizational behavior says about one more model, which is Collegial Model.
The collegial model describes the community.
The collegial model emphasizes teamwork, collaboration, and empowerment. In this model,
the organization is viewed as a community where employees work together towards common
goals.

There is a high degree of trust and open communication among employees and management.
Decision-making is decentralized, and employees are given autonomy and freedom to
contribute their ideas and expertise.
5. System Model
The system model takes a holistic approach, viewing the organization as a complex system of
interrelated parts. It recognizes the dynamic nature of organizations and the influence of
external factors such as the environment, technology, and market forces.
This model focuses on understanding the interactions and interdependencies among various
elements within the organization, such as individuals, groups, structures, and processes.