ROLE OF OB IN MANAGEMENT PRACTICES

Organizational Behavior (OB) is the study of how people behave in organizations. It focuses on understanding
the actions, attitudes, and interactions of employees and how these impact the overall performance of a
business. In management practices, OB plays a key role in the following ways:

1. Improving Communication: OB helps managers understand how people communicate with each other,
making it easier to reduce misunderstandings and improve teamwork.

2. Motivation: By understanding what motivates employees (such as rewards, recognition, or growth

opportunities), managers can create strategies that encourage employees to perform better and stay engaged.

3. Leadership Styles: OB teaches managers about different leadership styles, such as autocratic or democratic,
and helps them choose the best style for their team.

4. Teamwork: Understanding OB helps managers form effective teams, resolve conflicts, and ensure
collaboration among employees, leading to better results.

5. Change Management: OB is also important when it comes to managing change in an organization. It helps
managers understand how employees will react to changes and how to guide them through the process
smoothly.

6. Employee Satisfaction: OB helps managers create a work environment where employees are happy and
satisfied, which leads to higher productivity and lower turnover rates.

In summary, OB is essential for managers to understand human behavior and create a positive, efficient, and
productive work environment.

LEVELS OF OB
In Organizational Behavior (OB), there are three main levels at which behavior is studied and understood:

1. Individual Level: This level focuses on understanding the behavior of individuals in an organization. It looks
at how personal factors like personality, values, motivation, and perception influence a person's performance
and interactions at work. Topics studied at this level include job satisfaction, attitude formation, and individual
decision-making.

2. Group Level: The group level examines how people interact with each other in teams or work groups. It
looks at communication patterns, group dynamics, team behavior, and how roles and norms within a group
influence performance. Key areas include leadership, team cohesion, conflict resolution, and group decision-
making.

3. Organizational Level: At this level, OB focuses on how the organization as a whole operates. It looks at
organizational culture, structure, and processes that shape behavior across the entire organization. This level
studies how systems, policies, and practices impact employee behavior and organizational effectiveness. Topics
like organizational change, power dynamics, and organizational development are studied here.

In summary, OB is studied at three levels: individual, group, and organizational. Each level helps
managers understand how behaviors at different scales affect the overall performance and success of
an organization.
RELEVANCE OF OB
1. Use of power and sanction: power is referred as the capacity of an individual to take certain actions that
can be utilized in many but it is not necessary that all the ways of using power are equally effective.
Organizational behavior explains different means by which the power should be sanctioned and utilized so
that both organizational and individual objectives are achieved at the time.

2. Communication: Communication is a building block of an organization. To achieve organizational

objectives communication must be effective. OB helps to evaluate the importance of communication
processes in the organization as it helps to understand ourselves and others in a better way. It helps greatly
in improving interpersonal relations in the organization.

3. Motivation: The knowledge of OB helps the managers to know individual employees and motivate them
accordingly for better results. By analysing their needs and behavior different motivational techniques can
be used by the managers to motivate their subordinates.

4. Leadership: Success of an organization these days depend on the type and quality of leadership styles
followed by the managers. OB helps to view and understand different theories and styles of leadership by
creating new dimensions. It identifies what are different leadership styles and which are more appropriate
for a particular situation.

5. Interpersonal relationship: OB helps an individual to understand himself and others in a better way. The
significant topics in OB like attitude, perception, personality, motivation, and transactional analysis helps in
a better understanding of human behavior. OB helps to tackle human problems effectively. By treating
employees as human beings it helps to maintain cordial industrial relation between employees and
employers which help to foster peace and harmony in the organization.

6. Organization Climate: Organization climate refers to total organizational situations affecting human
behavior, it gives a total approach to the organizational climate as it not only considers satisfactory working
conditions and adequate compensation but also realizes the significance of good relations at the
workplace, effective supervision, atmosphere of mutual trust, sense of accomplishment as important
constituents for the good organizational climate.

7. Organization adaptation: Organization change is required to maintain equilibrium between various

external and internal forces to achieve various organizational goals. But general tendency and initial
reaction to the change is resistance. Managers have to face dual problems i.e. one is correct identification
of change and another is how to implement change. OB helps to understand individual needs and
implement change in a way so that people have willing full acceptance to change and they should modify
their accordingly.

MODELS OF OB
1. Autocratic Model (Power-Based)

 Meaning: The boss is like a king, and employees must follow orders.

 Key Idea: Authority and strict control.

 Example: A factory where workers only do what the manager says, without questioning.

2. Custodial Model (Security-Based)

 Meaning: The company provides financial security (like salaries, bonuses, and benefits) to keep
employees happy.

 Key Idea: Money and job security motivate workers.

 Example: A company offering high salaries and benefits to keep employees satisfied.

3. Supportive Model (Leadership-Based)

 Meaning: The manager supports and encourages employees instead of just giving orders.

 Key Idea: Motivation comes from leadership and recognition.

 Example: A team leader who helps and motivates employees to improve their skills.

4. Collegial Model (Partnership-Based)

 Meaning: The company and employees work together like teammates.

 Key Idea: Employees feel respected and responsible.

 Example: A software company where all employees work as a team with equal importance.

5. System Model (Value-Based)

 Meaning: The company focuses on employee growth, trust, and long-term development.

 Key Idea: Employees feel valued and contribute to the company’s success.

 Example: Google or Apple, where employees get freedom to be creative and innovative.