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Organizational behavior.

• Neal M. Ashkanasy Neal M. Ashkanasy University of Queensland
•  and  Alana D. Dorris Alana D. Dorris University of Queensland
• https://doi.org/10.1093/acrefore/9780190236557.013.23
• Published online: 29 March 2017

Organizational behavior (OB) is a discipline that includes principles from psychology, sociology, and anthropology. Its focus is on understanding how people behave in organizational work environments. Broadly speaking, OB covers three main levels of analysis: micro (individuals), meso (groups), and macro (the organization). Topics at the micro level include managing the diverse workforce; effects of individual differences in attitudes; job satisfaction and engagement, including their implications for performance and management; personality, including the effects of different cultures; perception and its effects on decision-making; employee values; emotions, including emotional intelligence, emotional labor, and the effects of positive and negative affect on decision-making and creativity (including common biases and errors in decision-making); and motivation, including the effects of rewards and goal-setting and implications for management. Topics at the meso level of analysis include group decision-making; managing work teams for optimum performance (including maximizing team performance and communication); managing team conflict (including the effects of task and relationship conflict on team effectiveness); team climate and group emotional tone; power, organizational politics, and ethical decision-making; and leadership, including leadership development and leadership effectiveness. At the organizational level, topics include organizational design and its effect on organizational performance; affective events theory and the physical environment; organizational culture and climate; and organizational change.

• organizational psychology
• organizational sociology
• organizational anthropology

Introduction

Organizational behavior (OB) is the study of how people behave in organizational work environments. More specifically, Robbins, Judge, Millett, and Boyle ( 2014 , p. 8) describe it as “[a] field of study that investigates the impact that individual groups and structure have on behavior within organizations, for the purposes of applying such knowledge towards improving an organization’s effectiveness.” The OB field looks at the specific context of the work environment in terms of human attitudes, cognition, and behavior, and it embodies contributions from psychology, social psychology, sociology, and anthropology. The field is also rapidly evolving because of the demands of today’s fast-paced world, where technology has given rise to work-from-home employees, globalization, and an ageing workforce. Thus, while managers and OB researchers seek to help employees find a work-life balance, improve ethical behavior (Ardichivili, Mitchell, & Jondle, 2009 ), customer service, and people skills (see, e.g., Brady & Cronin, 2001 ), they must simultaneously deal with issues such as workforce diversity, work-life balance, and cultural differences.

The most widely accepted model of OB consists of three interrelated levels: (1) micro (the individual level), (2) meso (the group level), and (3) macro (the organizational level). The behavioral sciences that make up the OB field contribute an element to each of these levels. In particular, OB deals with the interactions that take place among the three levels and, in turn, addresses how to improve performance of the organization as a whole.

In order to study OB and apply it to the workplace, it is first necessary to understand its end goal. In particular, if the goal is organizational effectiveness, then these questions arise: What can be done to make an organization more effective? And what determines organizational effectiveness? To answer these questions, dependent variables that include attitudes and behaviors such as productivity, job satisfaction, job performance, turnover intentions, withdrawal, motivation, and workplace deviance are introduced. Moreover, each level—micro, meso, and macro—has implications for guiding managers in their efforts to create a healthier work climate to enable increased organizational performance that includes higher sales, profits, and return on investment (ROE).

The Micro (Individual) Level of Analysis

The micro or individual level of analysis has its roots in social and organizational psychology. In this article, six central topics are identified and discussed: (1) diversity; (2) attitudes and job satisfaction; (3) personality and values; (4) emotions and moods; (5) perception and individual decision-making; and (6) motivation.

An obvious but oft-forgotten element at the individual level of OB is the diverse workforce. It is easy to recognize how different each employee is in terms of personal characteristics like age, skin color, nationality, ethnicity, and gender. Other, less biological characteristics include tenure, religion, sexual orientation, and gender identity. In the Australian context, while the Commonwealth Disability Discrimination Act of 1992 helped to increase participation of people with disabilities working in organizations, discrimination and exclusion still continue to inhibit equality (Feather & Boeckmann, 2007 ). In Western societies like Australia and the United States, however, antidiscrimination legislation is now addressing issues associated with an ageing workforce.

In terms of gender, there continues to be significant discrimination against female employees. Males have traditionally had much higher participation in the workforce, with only a significant increase in the female workforce beginning in the mid-1980s. Additionally, according to Ostroff and Atwater’s ( 2003 ) study of engineering managers, female managers earn a significantly lower salary than their male counterparts, especially when they are supervising mostly other females.

Job Satisfaction and Job Engagement

Job satisfaction is an attitudinal variable that comes about when an employee evaluates all the components of her or his job, which include affective, cognitive, and behavioral aspects (Weiss, 2002 ). Increased job satisfaction is associated with increased job performance, organizational citizenship behaviors (OCBs), and reduced turnover intentions (Wilkin, 2012 ). Moreover, traditional workers nowadays are frequently replaced by contingent workers in order to reduce costs and work in a nonsystematic manner. According to Wilkin’s ( 2012 ) findings, however, contingent workers as a group are less satisfied with their jobs than permanent employees are.

Job engagement concerns the degree of involvement that an employee experiences on the job (Kahn, 1990 ). It describes the degree to which an employee identifies with their job and considers their performance in that job important; it also determines that employee’s level of participation within their workplace. Britt, Dickinson, Greene-Shortridge, and McKibbin ( 2007 ) describe the two extremes of job satisfaction and employee engagement: a feeling of responsibility and commitment to superior job performance versus a feeling of disengagement leading to the employee wanting to withdraw or disconnect from work. The first scenario is also related to organizational commitment, the level of identification an employee has with an organization and its goals. Employees with high organizational commitment, job satisfaction, and employee engagement tend to perceive that their organization values their contribution and contributes to their wellbeing.

Personality represents a person’s enduring traits. The key here is the concept of enduring . The most widely adopted model of personality is the so-called Big Five (Costa & McCrae, 1992 ): extraversion, agreeableness, conscientiousness, emotional stability, and openness. Employees high in conscientiousness tend to have higher levels of job knowledge, probably because they invest more into learning about their role. Those higher in emotional stability tend to have higher levels of job satisfaction and lower levels of stress, most likely because of their positive and opportunistic outlooks. Agreeableness, similarly, is associated with being better liked and may lead to higher employee performance and decreased levels of deviant behavior.

Although the personality traits in the Big Five have been shown to relate to organizational behavior, organizational performance, career success (Judge, Higgins, Thoresen, & Barrick, 2006 ), and other personality traits are also relevant to the field. Examples include positive self-evaluation, self-monitoring (the degree to which an individual is aware of comparisons with others), Machiavellianism (the degree to which a person is practical, maintains emotional distance, and believes the end will justify the means), narcissism (having a grandiose sense of self-importance and entitlement), risk-taking, proactive personality, and type A personality. In particular, those who like themselves and are grounded in their belief that they are capable human beings are more likely to perform better because they have fewer self-doubts that may impede goal achievements. Individuals high in Machiavellianism may need a certain environment in order to succeed, such as a job that requires negotiation skills and offers significant rewards, although their inclination to engage in political behavior can sometimes limit their potential. Employees who are high on narcissism may wreak organizational havoc by manipulating subordinates and harming the overall business because of their over-inflated perceptions of self. Higher levels of self-monitoring often lead to better performance but they may cause lower commitment to the organization. Risk-taking can be positive or negative; it may be great for someone who thrives on rapid decision-making, but it may prove stressful for someone who likes to weigh pros and cons carefully before making decisions. Type A individuals may achieve high performance but may risk doing so in a way that causes stress and conflict. Proactive personality, on the other hand, is usually associated with positive organizational performance.

Employee Values

Personal value systems are behind each employee’s attitudes and personality. Each employee enters an organization with an already established set of beliefs about what should be and what should not be. Today, researchers realize that personality and values are linked to organizations and organizational behavior. Years ago, only personality’s relation to organizations was of concern, but now managers are more interested in an employee’s flexibility to adapt to organizational change and to remain high in organizational commitment. Holland’s ( 1973 ) theory of personality-job fit describes six personality types (realistic, investigative, social, conventional, enterprising, and artistic) and theorizes that job satisfaction and turnover are determined by how well a person matches her or his personality to a job. In addition to person-job (P-J) fit, researchers have also argued for person-organization (P-O) fit, whereby employees desire to be a part of and are selected by an organization that matches their values. The Big Five would suggest, for example, that extraverted employees would desire to be in team environments; agreeable people would align well with supportive organizational cultures rather than more aggressive ones; and people high on openness would fit better in organizations that emphasize creativity and innovation (Anderson, Spataro, & Flynn, 2008 ).

Individual Differences, Affect, and Emotion

Personality predisposes people to have certain moods (feelings that tend to be less intense but longer lasting than emotions) and emotions (intense feelings directed at someone or something). In particular, personalities with extraversion and emotional stability partially determine an individual predisposition to experience emotion more or less intensely.

Affect is also related as describing the positive and negative feelings that people experience (Ashkanasy, 2003 ). Moreover, emotions, mood, and affect interrelate; a bad mood, for instance, can lead individuals to experience a negative emotion. Emotions are action-oriented while moods tend to be more cognitive. This is because emotions are caused by a specific event that might only last a few seconds, while moods are general and can last for hours or even days. One of the sources of emotions is personality. Dispositional or trait affects correlate, on the one hand, with personality and are what make an individual more likely to respond to a situation in a predictable way (Watson & Tellegen, 1985 ). Moreover, like personality, affective traits have proven to be stable over time and across settings (Diener, Larsen, Levine, & Emmons, 1985 ; Watson, 1988 ; Watson & Tellegen, 1985 ; Watson & Walker, 1996 ). State affect, on the other hand, is similar to mood and represents how an individual feels in the moment.

The Role of Affect in Organizational Behavior

For many years, affect and emotions were ignored in the field of OB despite being fundamental factors underlying employee behavior (Ashforth & Humphrey, 1995 ). OB researchers traditionally focused on solely decreasing the effects of strong negative emotions that were seen to impede individual, group, and organizational level productivity. More recent theories of OB focus, however, on affect, which is seen to have positive, as well as negative, effects on behavior, described by Barsade, Brief, and Spataro ( 2003 , p. 3) as the “affective revolution.” In particular, scholars now understand that emotions can be measured objectively and be observed through nonverbal displays such as facial expression and gestures, verbal displays, fMRI, and hormone levels (Ashkanasy, 2003 ; Rashotte, 2002 ).

Fritz, Sonnentag, Spector, and McInroe ( 2010 ) focus on the importance of stress recovery in affective experiences. In fact, an individual employee’s affective state is critical to OB, and today more attention is being focused on discrete affective states. Emotions like fear and sadness may be related to counterproductive work behaviors (Judge et al., 2006 ). Stress recovery is another factor that is essential for more positive moods leading to positive organizational outcomes. In a study, Fritz et al. ( 2010 ) looked at levels of psychological detachment of employees on weekends away from the workplace and how it was associated with higher wellbeing and affect.

Emotional Intelligence and Emotional Labor

Ashkanasy and Daus ( 2002 ) suggest that emotional intelligence is distinct but positively related to other types of intelligence like IQ. It is defined by Mayer and Salovey ( 1997 ) as the ability to perceive, assimilate, understand, and manage emotion in the self and others. As such, it is an individual difference and develops over a lifetime, but it can be improved with training. Boyatzis and McKee ( 2005 ) describe emotional intelligence further as a form of adaptive resilience, insofar as employees high in emotional intelligence tend to engage in positive coping mechanisms and take a generally positive outlook toward challenging work situations.

Emotional labor occurs when an employee expresses her or his emotions in a way that is consistent with an organization’s display rules, and usually means that the employee engages in either surface or deep acting (Hochschild, 1983 ). This is because the emotions an employee is expressing as part of their role at work may be different from the emotions they are actually feeling (Ozcelik, 2013 ). Emotional labor has implications for an employee’s mental and physical health and wellbeing. Moreover, because of the discrepancy between felt emotions (how an employee actually feels) and displayed emotions or surface acting (what the organization requires the employee to emotionally display), surface acting has been linked to negative organizational outcomes such as heightened emotional exhaustion and reduced commitment (Erickson & Wharton, 1997 ; Brotheridge & Grandey, 2002 ; Grandey, 2003 ; Groth, Hennig-Thurau, & Walsh, 2009 ).

Affect and Organizational Decision-Making

Ashkanasy and Ashton-James ( 2008 ) make the case that the moods and emotions managers experience in response to positive or negative workplace situations affect outcomes and behavior not only at the individual level, but also in terms of strategic decision-making processes at the organizational level. These authors focus on affective events theory (Weiss & Cropanzano, 1996 ), which holds that organizational events trigger affective responses in organizational members, which in turn affect organizational attitudes, cognition, and behavior.

Perceptions and Behavior

Like personality, emotions, moods, and attitudes, perceptions also influence employees’ behaviors in the workplace. Perception is the way in which people organize and interpret sensory cues in order to give meaning to their surroundings. It can be influenced by time, work setting, social setting, other contextual factors such as time of day, time of year, temperature, a target’s clothing or appearance, as well as personal trait dispositions, attitudes, and value systems. In fact, a person’s behavior is based on her or his perception of reality—not necessarily the same as actual reality. Perception greatly influences individual decision-making because individuals base their behaviors on their perceptions of reality. In this regard, attribution theory (Martinko, 1995 ) outlines how individuals judge others and is our attempt to conclude whether a person’s behavior is internally or externally caused.

Decision-Making and the Role of Perception

Decision-making occurs as a reaction to a problem when the individual perceives there to be discrepancy between the current state of affairs and the state s/he desires. As such, decisions are the choices individuals make from a set of alternative courses of action. Each individual interprets information in her or his own way and decides which information is relevant to weigh pros and cons of each decision and its alternatives to come to her or his perception of the best outcome. In other words, each of our unique perceptual processes influences the final outcome (Janis & Mann, 1977 ).

Common Biases in Decision-Making

Although there is no perfect model for approaching decision-making, there are nonetheless many biases that individuals can make themselves aware of in order to maximize their outcomes. First, overconfidence bias is an inclination to overestimate the correctness of a decision. Those most likely to commit this error tend to be people with weak intellectual and interpersonal abilities. Anchoring bias occurs when individuals focus on the first information they receive, failing to adjust for information received subsequently. Marketers tend to use anchors in order to make impressions on clients quickly and project their brand names. Confirmation bias occurs when individuals only use facts that support their decisions while discounting all contrary views. Lastly, availability bias occurs when individuals base their judgments on information readily available. For example, a manager might rate an employee on a performance appraisal based on behavior in the past few days, rather than the past six months or year.

Errors in Decision-Making

Other errors in decision-making include hindsight bias and escalation of commitment . Hindsight bias is a tendency to believe, incorrectly, after an outcome of an event has already happened, that the decision-maker would have accurately predicted that same outcome. Furthermore, this bias, despite its prevalence, is especially insidious because it inhibits the ability to learn from the past and take responsibility for mistakes. Escalation of commitment is an inclination to continue with a chosen course of action instead of listening to negative feedback regarding that choice. When individuals feel responsible for their actions and those consequences, they escalate commitment probably because they have invested so much into making that particular decision. One solution to escalating commitment is to seek a source of clear, less distorted feedback (Staw, 1981 ).

The last but certainly not least important individual level topic is motivation. Like each of the topics discussed so far, a worker’s motivation is also influenced by individual differences and situational context. Motivation can be defined as the processes that explain a person’s intensity, direction, and persistence toward reaching a goal. Work motivation has often been viewed as the set of energetic forces that determine the form, direction, intensity, and duration of behavior (Latham & Pinder, 2005 ). Motivation can be further described as the persistence toward a goal. In fact many non-academics would probably describe it as the extent to which a person wants and tries to do well at a particular task (Mitchell, 1982 ).

Early theories of motivation began with Maslow’s ( 1943 ) hierarchy of needs theory, which holds that each person has five needs in hierarchical order: physiological, safety, social, esteem, and self-actualization. These constitute the “lower-order” needs, while social and esteem needs are “higher-order” needs. Self-esteem for instance underlies motivation from the time of childhood. Another early theory is McGregor’s ( 1960 ) X-Y theory of motivation: Theory X is the concept whereby individuals must be pushed to work; and theory Y is positive, embodying the assumption that employees naturally like work and responsibility and can exercise self-direction.

Herzberg subsequently proposed the “two-factor theory” that attitude toward work can determine whether an employee succeeds or fails. Herzberg ( 1966 ) relates intrinsic factors, like advancement in a job, recognition, praise, and responsibility to increased job satisfaction, while extrinsic factors like the organizational climate, relationship with supervisor, and salary relate to job dissatisfaction. In other words, the hygiene factors are associated with the work context while the motivators are associated with the intrinsic factors associated with job motivation.

Contemporary Theories of Motivation

Although traditional theories of motivation still appear in OB textbooks, there is unfortunately little empirical data to support their validity. More contemporary theories of motivation, with more acceptable research validity, include self-determination theory , which holds that people prefer to have control over their actions. If a task an individual enjoyed now feels like a chore, then this will undermine motivation. Higher self-determined motivation (or intrinsically determined motivation) is correlated with increased wellbeing, job satisfaction, commitment, and decreased burnout and turnover intent. In this regard, Fernet, Gagne, and Austin ( 2010 ) found that work motivation relates to reactions to interpersonal relationships at work and organizational burnout. Thus, by supporting work self-determination, managers can help facilitate adaptive employee organizational behaviors while decreasing turnover intention (Richer, Blanchard, & Vallerand, 2002 ).

Core self-evaluation (CSE) theory is a relatively new concept that relates to self-confidence in general, such that people with higher CSE tend to be more committed to goals (Bono & Colbert, 2005 ). These core self-evaluations also extend to interpersonal relationships, as well as employee creativity. Employees with higher CSE are more likely to trust coworkers, which may also contribute to increased motivation for goal attainment (Johnson, Kristof-Brown, van Vianen, de Pater, & Klein, 2003 ). In general, employees with positive CSE tend to be more intrinsically motivated, thus additionally playing a role in increasing employee creativity (Judge, Bono, Erez, & Locke, 2005 ). Finally, according to research by Amabile ( 1996 ), intrinsic motivation or self-determined goal attainment is critical in facilitating employee creativity.

Goal-Setting and Conservation of Resources

While self-determination theory and CSE focus on the reward system behind motivation and employee work behaviors, Locke and Latham’s ( 1990 ) goal-setting theory specifically addresses the impact that goal specificity, challenge, and feedback has on motivation and performance. These authors posit that our performance is increased when specific and difficult goals are set, rather than ambiguous and general goals. Goal-setting seems to be an important motivational tool, but it is important that the employee has had a chance to take part in the goal-setting process so they are more likely to attain their goals and perform highly.

Related to goal-setting is Hobfoll’s ( 1989 ) conservation of resources (COR) theory, which holds that people have a basic motivation to obtain, maintain, and protect what they value (i.e., their resources). Additionally there is a global application of goal-setting theory for each of the motivation theories. Not enough research has been conducted regarding the value of goal-setting in global contexts, however, and because of this, goal-setting is not recommended without consideration of cultural and work-related differences (Konopaske & Ivancevich, 2004 ).

Self-Efficacy and Motivation

Other motivational theories include self-efficacy theory, and reinforcement, equity, and expectancy theories. Self-efficacy or social cognitive or learning theory is an individual’s belief that s/he can perform a task (Bandura, 1977 ). This theory complements goal-setting theory in that self-efficacy is higher when a manager assigns a difficult task because employees attribute the manager’s behavior to him or her thinking that the employee is capable; the employee in turn feels more confident and capable.

Reinforcement theory (Skinner, 1938 ) counters goal-setting theory insofar as it is a behaviorist approach rather than cognitive and is based in the notion that reinforcement conditions behavior, or in other words focuses on external causes rather than the value an individual attributes to goals. Furthermore, this theory instead emphasizes the behavior itself rather than what precedes the behavior. Additionally, managers may use operant conditioning, a part of behaviorism, to reinforce people to act in a desired way.

Social-learning theory (Bandura, 1977 ) extends operant conditioning and also acknowledges the influence of observational learning and perception, and the fact that people can learn and retain information by paying attention, observing, and modeling the desired behavior.

Equity theory (Adams, 1963 ) looks at how employees compare themselves to others and how that affects their motivation and in turn their organizational behaviors. Employees who perceive inequity for instance, will either change how much effort they are putting in (their inputs), change or distort their perceptions (either of self or others in relation to work), change their outcomes, turnover, or choose a different referent (acknowledge performance in relation to another employee but find someone else they can be better than).

Last but not least, Vroom’s ( 1964 ) expectancy theory holds that individuals are motivated by the extent to which they can see that their effort is likely to result in valued outcomes. This theory has received strong support in empirical research (see Van Erde & Thierry, 1996 , for meta-analytic results). Like each of the preceding theories, expectancy theory has important implications that managers should consider. For instance, managers should communicate with employees to determine their preferences to know what rewards to offer subordinates to elicit motivation. Managers can also make sure to identify and communicate clearly the level of performance they desire from an employee, as well as to establish attainable goals with the employee and to be very clear and precise about how and when performance will be rewarded (Konopaske & Ivancevich, 2004 ).

The Meso (Group) Level of Analysis

The second level of OB research also emerges from social and organizational psychology and relates to groups or teams. Topics covered so far include individual differences: diversity, personality and emotions, values and attitudes, motivation, and decision-making. Thus, in this section, attention turns to how individuals come together to form groups and teams, and begins laying the foundation for understanding the dynamics of group and team behavior. Topics at this level also include communication, leadership, power and politics, and conflict.

A group consists of two or more individuals who come together to achieve a similar goal. Groups can be formal or informal. A formal group on the one hand is assigned by the organization’s management and is a component of the organization’s structure. An informal group on the other hand is not determined by the organization and often forms in response to a need for social contact. Teams are formal groups that come together to meet a specific group goal.

Although groups are thought to go through five stages of development (Tuckman, 1965 : forming, storming, norming, performing, and adjourning) and to transition to effectiveness at the halfway mark (Gersick, 1988 ), group effectiveness is in fact far more complex. For example, two types of conformity to group norms are possible: compliance (just going along with the group’s norms but not accepting them) and personal acceptance (when group members’ individual beliefs match group norms). Behavior in groups then falls into required behavior usually defined by the formal group and emergent behavior that grows out of interactions among group members (Champoux, 2011 ).

Group Decision-Making

Although many of the decisions made in organizations occur in groups and teams, such decisions are not necessarily optimal. Groups may have more complex knowledge and increased perspectives than individuals but may suffer from conformity pressures or domination by one or two members. Group decision-making has the potential to be affected by groupthink or group shift. In groupthink , group pressures to conform to the group norms deter the group from thinking of alternative courses of action (Janis & Mann, 1977 ). In the past, researchers attempted to explain the effects of group discussion on decision-making through the following approaches: group decision rules, interpersonal comparisons, and informational influence. Myers and Lamm ( 1976 ), however, present a conceptual schema comprised of interpersonal comparisons and informational influence approaches that focus on attitude development in a more social context. They found that their research is consistent with the group polarization hypothesis: The initial majority predicts the consensus outcome 90% of the time. The term group polarization was founded in Serge Moscovici and his colleagues’ literature (e.g., Moscovici & Zavalloni, 1969 ). Polarization refers to an increase in the extremity of the average response of the subject population.

In other words, the Myer and Lamm ( 1976 ) schema is based on the idea that four elements feed into one another: social motivation, cognitive foundation, attitude change, and action commitment. Social motivation (comparing self with others in order to be perceived favorably) feeds into cognitive foundation , which in turn feeds into attitude change and action commitment . Managers of organizations can help reduce the negative phenomena and increase the likelihood of functional groups by encouraging brainstorming or openly looking at alternatives in the process of decision-making such as the nominal group technique (which involves restricting interpersonal communication in order to encourage free thinking and proceeding to a decision in a formal and systematic fashion such as voting).

Elements of Team Performance

OB researchers typically focus on team performance and especially the factors that make teams most effective. Researchers (e.g., see De Dreu & Van Vianen, 2001 ) have organized the critical components of effective teams into three main categories: context, composition, and process. Context refers to the team’s physical and psychological environment, and in particular the factors that enable a climate of trust. Composition refers to the means whereby the abilities of each individual member can best be most effectively marshaled. Process is maximized when members have a common goal or are able to reflect and adjust the team plan (for reflexivity, see West, 1996 ).

Communication

In order to build high-performing work teams, communication is critical, especially if team conflict is to be minimized. Communication serves four main functions: control, motivation, emotional expression, and information (Scott & Mitchell, 1976 ). The communication process involves the transfer of meaning from a sender to a receiver through formal channels established by an organization and informal channels, created spontaneously and emerging out of individual choice. Communication can flow downward from managers to subordinates, upward from subordinates to managers, or between members of the same group. Meaning can be transferred from one person to another orally, through writing, or nonverbally through facial expressions and body movement. In fact, body movement and body language may complicate verbal communication and add ambiguity to the situation as does physical distance between team members.

High-performance teams tend to have some of the following characteristics: interpersonal trust, psychological and physical safety, openness to challenges and ideas, an ability to listen to other points of view, and an ability to share knowledge readily to reduce task ambiguity (Castka, Bamber, Sharp, & Belohoubek, 2001 ). Although the development of communication competence is essential for a work team to become high-performing, that communication competence is also influenced by gender, personality, ability, and emotional intelligence of the members. Ironically, it is the self-reliant team members who are often able to develop this communication competence. Although capable of working autonomously, self-reliant team members know when to ask for support from others and act interdependently.

Emotions also play a part in communicating a message or attitude to other team members. Emotional contagion, for instance, is a fascinating effect of emotions on nonverbal communication, and it is the subconscious process of sharing another person’s emotions by mimicking that team member’s nonverbal behavior (Hatfield, Cacioppo, & Rapson, 1993 ). Importantly, positive communication, expressions, and support of team members distinguished high-performing teams from low-performing ones (Bakker & Schaufeli, 2008 ).

Team Conflict

Because of member interdependence, teams are inclined to more conflict than individual workers. In particular, diversity in individual differences leads to conflict (Thomas, 1992 ; Wall & Callister, 1995 ; see also Cohen & Bailey, 1997 ). Jehn ( 1997 ) identifies three types of conflict: task, relationship, and process. Process conflict concerns how task accomplishment should proceed and who is responsible for what; task conflict focuses on the actual content and goals of the work (Robbins et al., 2014 ); and relationship conflict is based on differences in interpersonal relationships. While conflict, and especially task conflict, does have some positive benefits such as greater innovation (Tjosvold, 1997 ), it can also lead to lowered team performance and decreased job satisfaction, or even turnover. De Dreu and Van Vianen ( 2001 ) found that team conflict can result in one of three responses: (1) collaborating with others to find an acceptable solution; (2) contending and pushing one member’s perspective on others; or (3) avoiding and ignoring the problem.

Team Effectiveness and Relationship Conflict

Team effectiveness can suffer in particular from relationship conflict, which may threaten team members’ personal identities and self-esteem (Pelled, 1995 ). In this regard, Murnighan and Conlon ( 1991 ) studied members of British string quartets and found that the most successful teams avoided relationship conflict while collaborating to resolve task conflicts. This may be because relationship conflict distracts team members from the task, reducing team performance and functioning. As noted earlier, positive affect is associated with collaboration, cooperation, and problem resolution, while negative affect tends to be associated with competitive behaviors, especially during conflict (Rhoades, Arnold, & Jay, 2001 ).

Team Climate and Emotionality

Emotional climate is now recognized as important to team processes (Ashkanasy & Härtel, 2014 ), and team climate in general has important implications for how individuals behave individually and collectively to effect organizational outcomes. This idea is consistent with Druskat and Wolff’s ( 2001 ) notion that team emotional-intelligence climate can help a team manage both types of conflict (task and relationship). In Jehn’s ( 1997 ) study, she found that emotion was most often negative during team conflict, and this had a negative effect on performance and satisfaction regardless of the type of conflict team members were experiencing. High emotionality, as Jehn calls it, causes team members to lose sight of the work task and focus instead on the negative affect. Jehn noted, however, that absence of group conflict might also may block innovative ideas and stifle creativity (Jehn, 1997 ).

Power and Politics

Power and organizational politics can trigger employee conflict, thus affecting employee wellbeing, job satisfaction, and performance, in turn affecting team and organizational productivity (Vigoda, 2000 ). Because power is a function of dependency, it can often lead to unethical behavior and thus become a source of conflict. Types of power include formal and personal power. Formal power embodies coercive, reward, and legitimate power. Coercive power depends on fear. Reward power is the opposite and occurs when an individual complies because s/he receives positive benefits from acting in accordance with the person in power. In formal groups and organizations, the most easily accessed form of power is legitimate because this form comes to be from one’s position in the organizational hierarchy (Raven, 1993 ). Power tactics represent the means by which those in a position of power translate their power base (formal or personal) into specific actions.

The nine influence tactics that managers use according to Yukl and Tracey ( 1992 ) are (1) rational persuasion, (2) inspirational appeal, (3) consultation, (4) ingratiation, (5) exchange, (6) personal appeal, (7) coalition, (8) legitimating, and (9) pressure. Of these tactics, inspirational appeal, consultation, and rational persuasion were among the strategies most effective in influencing task commitment. In this study, there was also a correlation found between a manager’s rational persuasion and a subordinate rating her effectively. Perhaps this is because persuasion requires some level of expertise, although more research is needed to verify which methods are most successful. Moreover, resource dependence theory dominates much theorizing about power and organizational politics. In fact, it is one of the central themes of Pfeffer and Salancik’s ( 1973 ) treatise on the external control of organizations. First, the theory emphasizes the importance of the organizational environment in understanding the context of how decisions of power are made (see also Pfeffer & Leblebici, 1973 ). Resource dependence theory is based on the premise that some organizations have more power than others, occasioned by specifics regarding their interdependence. Pfeffer and Salancik further propose that external interdependence and internal organizational processes are related and that this relationship is mediated by power.

Organizational Politics

Political skill is the ability to use power tactics to influence others to enhance an individual’s personal objectives. In addition, a politically skilled person is able to influence another person without being detected (one reason why he or she is effective). Persons exerting political skill leave a sense of trust and sincerity with the people they interact with. An individual possessing a high level of political skill must understand the organizational culture they are exerting influence within in order to make an impression on his or her target. While some researchers suggest political behavior is a critical way to understand behavior that occurs in organizations, others simply see it as a necessary evil of work life (Champoux, 2011 ). Political behavior focuses on using power to reach a result and can be viewed as unofficial and unsanctioned behavior (Mintzberg, 1985 ). Unlike other organizational processes, political behavior involves both power and influence (Mayes & Allen, 1977 ). Moreover, because political behavior involves the use of power to influence others, it can often result in conflict.

Organizational Politics, Power, and Ethics

In concluding this section on power and politics, it is also appropriate to address the dark side, where organizational members who are persuasive and powerful enough might become prone to abuse standards of equity and justice and thereby engage in unethical behavior. An employee who takes advantage of her position of power may use deception, lying, or intimidation to advance her own interests (Champoux, 2011 ). When exploring interpersonal injustice, it is important to consider the intent of the perpetrator, as well as the effect of the perpetrator’s treatment from the victim’s point of view. Umphress, Simmons, Folger, Ren, and Bobocel ( 2013 ) found in this regard that not only does injustice perceived by the self or coworkers influence attitudes and behavior within organizations, but injustice also influences observer reactions both inside and outside of the organization.

Leadership plays an integrative part in understanding group behavior, because the leader is engaged in directing individuals toward attitudes and behaviors, hopefully also in the direction of those group members’ goals. Although there is no set of universal leadership traits, extraversion from the Big Five personality framework has been shown in meta-analytic studies to be positively correlated with transformational, while neuroticism appears to be negatively correlated (Bono & Judge, 2004 ). There are also various perspectives to leadership, including the competency perspective, which addresses the personality traits of leaders; the behavioral perspective, which addresses leader behaviors, specifically task versus people-oriented leadership; and the contingency perspective, which is based on the idea that leadership involves an interaction of personal traits and situational factors. Fiedler’s ( 1967 ) contingency, for example, suggests that leader effectiveness depends on the person’s natural fit to the situation and the leader’s score on a “least preferred coworker” scale.

More recently identified styles of leadership include transformational leadership (Bass, Avolio, & Atwater, 1996 ), charismatic leadership (Conger & Kanungo, 1988 ), and authentic leadership (Luthans & Avolio, 2003 ). In a nutshell, transformational leaders inspire followers to act based on the good of the organization; charismatic leaders project a vision and convey a new set of values; and authentic leaders convey trust and genuine sentiment.

Leader-member exchange theory (LMX; see Graen & Uhl-Bien, 1995 ) assumes that leadership emerges from exchange relationships between a leader and her or his followers. More recently, Tse, Troth, and Ashkanasy ( 2015 ) expanded on LMX to include social processes (e.g., emotional intelligence, emotional labor, and discrete emotions), arguing that affect plays a large part in the leader-member relationship.

Leadership Development

An emerging new topic in leadership concerns leadership development, which embodies the readiness of leadership aspirants to change (Hannah & Avolio, 2010 ). In this regard, the learning literature suggests that intrinsic motivation is necessary in order to engage in development (see Hidi & Harackiewicz, 2000 ), but also that the individual needs to be goal-oriented and have developmental efficacy or self-confidence that s/he can successfully perform in leadership contexts.

Ashkanasy, Dasborough, and Ascough ( 2009 ) argue further that developing the affective side of leaders is important. In this case, because emotions are so pervasive within organizations, it is important that leaders learn how to manage them in order to improve team performance and interactions with employees that affect attitudes and behavior at almost every organizational level.

Abusive Leadership

Leaders, or those in positions of power, are particularly more likely to run into ethical issues, and only more recently have organizational behavior researchers considered the ethical implications of leadership. As Gallagher, Mazur, and Ashkanasy ( 2015 ) describe, since 2009 , organizations have been under increasing pressure to cut costs or “do more with less,” and this sometimes can lead to abusive supervision, whereby employee job demands exceed employee resources, and supervisors engage in bullying, undermining, victimization, or personal attacks on subordinates (Tepper, 2000 ).

Supervisors who are very high or low in emotional intelligence may be more likely to experience stress associated with a very demanding high-performance organizational culture. These supervisors may be more likely to try to meet the high demands and pressures through manipulative behaviors (Kilduff, Chiaburu, & Menges, 2010 ). This has serious implications for employee wellbeing and the organization as a whole. Abusive supervision detracts from the ability for those under attack to perform effectively, and targets often come to doubt their own ability to perform (Tepper, 2000 ).

The Macro (Organizational) Level of Analysis

The final level of OB derives from research traditions across three disciplines: organizational psychology, organizational sociology, and organizational anthropology. Moreover, just as teams and groups are more than the sum of their individual team members, organizations are also more than the sum of the teams or groups residing within them. As such, structure, climate, and culture play key roles in shaping and being shaped by employee attitudes and behaviors, and they ultimately determine organizational performance and productivity.

Organizational Structure

Organizational structure is a sociological phenomenon that determines the way tasks are formally divided and coordinated within an organization. In this regard, jobs are often grouped by the similarity of functions performed, the product or service produced, or the geographical location. Often, the number of forms of departmentalization will depend on the size of the organization, with larger organizations having more forms of departmentalization than others. Organizations are also organized by the chain of command or the hierarchy of authority that determines the span of control, or how many employees a manager can efficiently and effectively lead. With efforts to reduce costs since the global financial crisis of 2009 , organizations have tended to adopt a wider, flatter span of control, where more employees report to one supervisor.

Organizational structure also concerns the level of centralization or decentralization, the degree to which decision-making is focused at a single point within an organization. Formalization is also the degree to which jobs are organized in an organization. These levels are determined by the organization and also vary greatly across the world. For example, Finnish organizations tend to be more decentralized than their Australian counterparts and, as a consequence, are more innovative (Leiponen & Helfat, 2011 ).

Mintzberg ( 1979 ) was the first to set out a taxonomy of organizational structure. Within his model, the most common organizational design is the simple structure characterized by a low level of departmentalization, a wide span of control, and centralized authority. Other organizational types emerge in larger organizations, which tend to be bureaucratic and more routinized. Rules are formalized, tasks are grouped into departments, authority is centralized, and the chain of command involves narrow spans of control and decision-making. An alternative is the matrix structure, often found in hospitals, universities, and government agencies. This form of organization combines functional and product departmentalization where employees answer to two bosses: functional department managers and product managers.

New design options include the virtual organization and the boundaryless organization , an organization that has no chain of command and limitless spans of control. Structures differ based on whether the organization seeks to use an innovation strategy, imitation strategy, or cost-minimization strategy (Galunic & Eisenhardt, 1994 ). Organizational structure can have a significant effect on employee attitudes and behavior. Evidence generally shows that work specialization leads to higher employee productivity but also lower job satisfaction (Porter & Lawler, 1965 ). Gagné and Deci emphasize that autonomous work motivation (i.e., intrinsic motivation and integrated extrinsic motivation) is promoted in work climates that are interesting, challenging, and allow choice. Parker, Wall, and Jackson ( 1997 ) specifically relate job enlargement to autonomous motivation. Job enlargement was first discussed by management theorists like Lawler and Hall ( 1970 ), who believed that jobs should be enlarged to improve the intrinsic motivation of workers. Today, most of the job-design literature is built around the issue of work specialization (job enlargement and enrichment). In Parker, Wall, and Jackson’s study, they observed that horizontally enlarging jobs through team-based assembly cells led to greater understanding and acceptance of the company’s vision and more engagement in new work roles. (In sum, by structuring work to allow more autonomy among employees and identification among individual work groups, employees stand to gain more internal autonomous motivation leading to improved work outcomes (van Knippenberg & van Schie, 2000 ).

The Physical Environment of Work

Ashkanasy, Ayoko, and Jehn ( 2014 ) extend the topic of organizational structure to discuss, from a psychological perspective, how the physical work environment shapes employee attitudes, behaviors, and organizational outcomes. Elsbach ( 2003 ) pointed out that the space within which employees conduct their work is critical to employees’ levels of performance and productivity. In their study, Ashkanasy and his colleagues looked at the underlying processes influencing how the physical environment determines employee attitudes and behaviors, in turn affecting productivity levels. They base their model on affective events theory (Weiss & Cropanzano, 1996 ), which holds that particular “affective” events in the work environment are likely to be the immediate cause of employee behavior and performance in organizations (see also Ashkanasy & Humphrey, 2011 ). Specifically, Ashkanasy and colleagues ( 2014 ) looked at how this theory holds in extremely crowded open-plan office designs and how employees in these offices are more likely to experience negative affect, conflict, and territoriality, negatively impacting attitudes, behaviors, and work performance.

• Organizational Climate and Culture

Although organizational structure and the physical environment are important determinants of employee attitudes and behaviors, organizational culture and climate lie at the heart of organizational interactions (Ashkanasy & Jackson, 2001 ). Organizational culture derives from an anthropological research tradition, while organizational climate is based on organizational psychology.

A central presumption of culture is that, as Smircich ( 1983 ) noted, organizational behavior is not a function of what goes on inside individual employees’ heads, but between employees, as evidenced in daily organizational communication and language. As such, organizational culture allows one organization to distinguish itself from another, while conveying a sense of identity for its members.

Organizational Climate and its Relation to Organizational Culture

Organizational culture creates organizational climate or employees’ shared perceptions about their organization and work environment. Organizational climate has been found to facilitate and/or inhibit displays of certain behaviors in one study (Smith-Crowe, Burke, & Landis, 2003 ), and overall, organizational climate is often viewed as a surface-level indicator of the functioning of the employee/organizational environment relationship (Ryan, Horvath, Ployhart, Schmitt, & Slade, 2000 ). For instance, a more restrictive climate may inhibit individual decision-making in contrast to a more supportive climate in which the organization may intervene at the individual level and in which the ability/job performance relationship is supported (James, Demaree, Mulaik, & Ladd, 1992 ). In a study focused on safety climate, Smith-Crowe and colleagues found that organizational climate is essential in determining whether training will transfer to employee performance, and this is most likely because organizational climate moderates the knowledge/performance relationship. Gibbs and Cooper ( 2010 ) also found that a supportive organizational climate is positively related to employee performance. They specifically looked at PsyCap, the higher-order construct of psychological capital first proposed by Luthans and Youssef ( 2004 ).

Organizational Change

The final topic covered in this article is organizational change. Organizational culture and climate can both be negatively impacted by organizational change and, in turn, negatively affect employee wellbeing, attitudes, and performance, reflecting onto organizational performance. Often, there is great resistance to change, and the success rate of organizational change initiatives averages at less than 30% (Al-Haddad & Kotnour, 2015 ). In order to overcome this resistance, it is important that managers plan ahead for changes and emphasize education and communication about them. As organizations becoming increasingly globalized, change has become the norm, and this will continue into the future.

Additionally, as organizations become increasingly globalized, organizational changes often involve mergers that have important organizational implications. In this regard, Kavanagh and Ashkanasy ( 2006 ) found that, for a merger to be successful, there needs to be alignment between the individual values and organizational cultures of merging partners. Managers during a merger situation need to be especially cognizant of how this organizational change affects the company’s original organizational culture.

Organizational development (OD), a collection of planned change interventions, may be the way to improve organizational performance and increase employee wellbeing. OD focuses on employees respecting one another, trust and support, equal power, confrontation of problems, and participation of everyone affected by the organizational change (Lines, 2004 ). Moreover, when an organization already has an established climate and culture that support change and innovation, an organization may have less trouble adapting to the change.

Organizational change research encompasses almost all aspects of organizational behavior. Individuals and employees are motivated to achieve success and be perceived as successful. In this regard, each of the individual differences—personality, affect, past experiences, values, and perceptions—plays into whether individuals can transcend obstacles and deal with the barriers encountered along the journey toward achievement. Teams are similarly motivated to be successful in a collective sense and to prove that they contribute to the organization as a whole. In addition to individual differences, team members deal with bringing all those individual differences together, which can wreak havoc on team communication and cause further obstacles in terms of power differences and conflicts in regard to decision-making processes. Last, at the organizational level of organizational behavior, it is important to account for all of these micro- and meso-level differences, and to address the complexity of economic pressures, increasing globalization, and global and transnational organizations to the mix. This is at the top level of sophistication because, as emphasized before, just as groups equal much more than the sum of individual members, organizations are much more than the sum of their teams. The organizational structure, the formal organization, the organizational culture, and climate and organizational rules all impact whether an organization can perform effectively. Organizational behavior, through its complex study of human behavior at its very conception, offers much-needed practical implications for managers in understanding people at work.

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Learning Objectives

• Describe the relationship between management theory and organizational behavior

The first management theory that helped establish the foundation for organizational behavior was Taylor’s Scientific Management Theory. As we discussed earlier, Taylor placed a huge focus on productivity and worked to establish the most efficient ways to accomplish every task, big and small. Taylor’s theory impacted each organization’s productivity and it also changed the professional and personal dynamic of its employees and managers. This classical approach to management was later challenged by the onset of the human relations management movement which helped to further develop the groundwork organizational behavior.

While effective for productivity, the scientific management theory was missing a key component, human relations. In response to the classical management approach, human relations management theory was born. The Hawthorne Studies were a shining example of how much human relations and interactions can affect the workforce. A connection was finally made between productivity and the people responsible for it. The Hawthorne Studies proved that it was important for companies to take interest in their employees in order to increase productivity and decrease turnover. Not only did the studies show that individuals performed better when given attention, it also revealed that group dynamics were equally as important as individual contentment. It was becoming clear that the individual and group dynamics in an organization were equally important and directly related to the output of a company. It was through this revelation that people began to study the behavior of organizations at multiple levels; individual, group, and whole organization.

Another big impact on the development of organizational behavior was McGregor’s Theory X & Theory Y. As you read in the last section, the two theories are extremely different. Theory X states that people are inherently lazy and need to be forced to work. Theory Y on the other hand, says that people are motivated to work and argues the importance of a team dynamic. Theory Y is the more effective of the two theories and is a fundamental part of the foundation for organizational behavior.

While organizational behavior roots can be found in many management theories, it was not officially recognized as a field of its own until the 1970s. Since the 1970s, organizational behavior has developed into its own unique field covering a wide variety of topics for individual and group relations within organizations. This course will help you deep dive into the interworking of organizational behavior and help you understand how organizational behavior affects the day-to-day lives of employees in the workplace.

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Introduction

Learning outcomes.

After reading this chapter, you should be able to answer these questions:

• What is the meaning of work in a societal context?
• How do we recognize and meet the challenges facing managers in the new millennium?
• What is expected of a manager?
• What is the role of the behavioral sciences in management and organizations?

Exploring Managerial Careers

The management challenge at apple and google.

When Apple was developing iOS 10, a group of 600 engineers was able to debug, develop, and deploy the new programming within two years. Contrarily, Microsoft engineers were able to develop and execute the programming on Vista, but it took considerably longer and was a bigger undertaking, with almost 6,000 engineers at hand. What was the difference?

According to the study conducted by leadership consulting firm Bain & Company, companies like Apple, Google, and Netflix are 40 percent more productive than the average company. Some may think that this is a product of the hiring pool; big companies generally attract a more talented group of recruits. With unique benefits and prowess in the industry, this must be the case. Wrong. Google and Apple have found a way to answer the most fundamental question in management: How do you balance productivity while maintaining employee satisfaction and commitment?

Companies such as Google have approximately the same percentage of “star players” as other companies, but instead of spreading out the talent, they group them dynamically to achieve more throughout the day. This grouping focuses on grouping key players in the most business-critical roles, and is the key to success for the overall company. You’ve heard the saying “You’re only as strong as your weakest link,” and in the case of Apple, there were no weak links, making their productivity extremely high overall. To make matters more complicated, the fast-paced workplace and technology changes, including the diversity of employees and the global marketplace, takes a considerable toll on employee expectations, as do the overall stresses of the business performance. Apple is just one example of a company that figured out one of the pieces to this puzzle, but it is illustrative of what is happening in the workplace all around the globe.

Contemporary managers are witnessing changes in technologies, markets, competition, workforce demographics, employee expectations, and ethical standards. At the heart of these changes is the issue of how to manage people effectively. To attain corporate objectives, each manager must discover how to develop and maintain a workforce that can meet today’s needs while getting ready for tomorrow’s challenges. As a result, managers are asking questions such as:

• How can we meet the international competition?
• How can we make this organization more effective?
• How can we better utilize our human resources?
• How can we create a more satisfying and rewarding work environment for all employees?
• How can we improve the quality of our products?
• How can we improve communication and decision-making processes at work?
• How should we evaluate and reward performance?
• How can we develop the company leaders of tomorrow?

Questions such as these point to the issue of effective management. That is, what can managers do to improve both organizational and employee performance? Effective management requires an in-depth knowledge of financial management, marketing research and consumer behavior, accounting and control practices, manufacturing and production techniques, and quantitative methods. In addition, however, effective management requires “people skills.” That is, a good manager must be able to motivate his employees, to lead skillfully, to make appropriate and timely decisions, to communicate effectively, to organize work, to deal with organizational politics, and to work to develop both employees and the organization as a whole. These issues constitute the subject of this course. We shall examine principles of the behavioral sciences that can help managers improve both their own skills and abilities and those of their subordinates in order to enhance organizational performance and effectiveness.

As a prelude to this analysis, we begin with a brief look at the natures of work and of management. Contemporary challenges are discussed. Next, we consider a model of organizational behavior that will serve as a guide throughout the study of management and organizational behavior. We begin with an examination of work.

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Organizational Behavior and Human Relations

Table of Contents

Course contents.

• About This Course
• Course Contents at a Glance
• Learning Outcomes

Faculty Resources

• Faculty Resource Overview
• Offline Content Access
• PowerPoints
• Assignments
• Question Banks
• I Need Help

Resources: Discussions and Assignments

• Module 1 Discussion: Introduction to Organizational Behavior
• Module 1 Assignment: Management Theory Timeline
• Module 1 Assignment: Relationships Between Management Theory and Organizational Behavior
• Module 2 Discussion: Social Diversity in the Workplace
• Module 2 Assignment: Diversity in the Workplace
• Module 3 Discussion: Ethics In Business
• Module 4 Discussion: Individual Personalities and Behaviors
• Module 5 Discussion: Organizational Culture
• Module 5 Assignment: Managing External Factors
• Module 6 Discussion: Motivation in the Workplace
• Module 6 Assignment: Motivation in the Workplace
• Module 7 Discussion: Managing Stress and Emotions
• Module 8 Discussion: Communication in the Workplace
• Module 8 Assignment: Communication in the Workplace
• Module 9 Discussion: Group Dynamics
• Module 10 Discussion: Managing Groups and Teams
• Module 10 Assignment: Individual and Group Behavioral Theories Applied to the Workplace
• Module 11 Discussion: Conflict and Negotiation
• Module 12 Discussion: Making Decisions
• Module 13 Discussion: Leadership
• Module 13 Assignment: Leadership and Management
• Module 14 Discussion: Organizational Structure
• Module 15 Discussion: Organizational Change
• Module 15 Assignment: Change Management and Conflict Resolution

Module 1: Introduction to Organizational Behavior

• Why It Matters: Introduction to Organizational Behavior
• Introduction to Management Theory and Organizational Behavior
• History of Management Theory
• Different Management Theories
• Management Theory and Organizational Behavior
• Introduction to Organizational Behavior as Its Own Field
• What is Organizational Behavior?
• Three Levels of Influence
• Introduction to Contemporary Issues
• Telecommuting
• Green Business Practices
• Outsourcing
• Workforce Generations
• Putting It Together: Introduction to Organizational Behavior
• Discussion: Introduction to Organizational Behavior
• Assignment: Management Theory Timeline 
• Assignment: Relationships Between Management Theory and Organizational Behavior

Module 2: Social Diversity in the Workplace

• Why It Matters: Social Diversity in the Workplace
• Introduction to Social Progress in the Workplace
• Social Diversity and Social Progress
• History of Social Progress
• Introduction to the Complexity of Diversity
• Generations
• Gender Diversity
• Racial Diversity
• Religious Diversity
• Sexual Orientation in the Workplace
• Disabilities
• Social Diversity in the Workplace
• Introduction to Contemporary Social Diversity
• Benefits of Social Diversity
• Diversity Investigations
• Encouraging Diversity
• Putting It Together: Social Diversity in the Workplace
• Discussion: Social Diversity in the Workplace
• Assignment: Diversity in the Workplace

Module 3: Ethics in Business

• Why It Matters: Ethics In Business
• Introduction to Business Ethics in Organizational Behavior
• History of Business Ethics
• Business Ethics in the Workplace
• Recent Ethical Investigations
• Introduction to Behaving Ethically
• Hiring Ethically
• Code of Ethics
• Training for Ethical Behavior
• Creating an Ethical Culture
• Putting It Together: Ethics in Business
• Discussion: Ethics In Business

Module 4: Individual Personalities and Behaviors

• Why It Matters: Individual Personalities and Behaviors
• Introduction to Personality and Behavior in the Workplace
• Personality Traits
• Personality and Behavior
• Situational Influences on Personality
• Introduction to Workplace Influence on Individuality
• Individuality vs Conformity
• Individualized Management
• Technology and Organizational Behavior
• Putting It Together: Individual Personalities and Behaviors
• Discussion: Individual Personalities and Behaviors

Module 5: Organizational Culture

• Why It Matters: Organizational Culture
• Introduction to Defining Organizational Culture
• What is Organizational Culture?
• Levels of Organizational Culture
• Introduction to External Factors of Organizational Culture
• External Factors
• Introduction to Internal Factors of Organizational Culture
• Internal Factors
• Developing and Maintaining Culture
• Workplace Design
• Organizational Culture
• Putting It Together: Organizational Culture
• Discussion: Organizational Culture
• Assignment: Managing External Factors

Module 6: Motivation in the Workplace

• Why It Matters: Motivation in the Workplace
• Introduction to Motivation in Organizational Behavior
• What is Motivation?
• Individual Components of Motivation
• Work Components of Motivation
• Organizational Components of Motivation
• Introduction to Theories of Motivation
• The Hawthorne Effect
• Need-Based Theories
• McGregor’s Theory X and Theory Y
• Herzberg's Two-Factor Theory
• Introduction to Motivation in the Workplace
• Managerial Responses to Motivation
• Motivation in Different Cultures
• Motivation in the Workplace
• Putting It Together: Motivation in the Workplace
• Discussion: Motivation in the Workplace
• Assignment: Motivation in the Workplace

Module 7: Managing Stress and Emotions

• Why It Matters: Managing Stress and Emotions
• Introduction to Stress in an Organization
• What is Stress?
• Sources of Stress
• Consequences and Costs of Stress
• Introduction to Workplace Stress Management
• Individual Approaches to Stress Management
• Managerial Approaches to Stress Management
• Organizational Approaches to Stress Management
• Managing Stress
• Putting It Together: Managing Stress and Emotions
• Discussion: Managing Stress and Emotions

Module 8: Communication in the Workplace

• Why It Matters: Communication in the Workplace
• Introduction to Key Components of Communication
• Functions of Organizational Communication
• The Process of Communication
• Directions of Communication
• Types of Communication
• Effective Communication
• Introduction to Communicating with Technology
• Written Communication
• Audio Communication
• Video Communication
• Online Communication
• Introduction to Other Concerns in Workplace Communication
• Ethics in Communication
• Staying Connected
• Putting It Together: Communication in the Workplace
• Discussion: Communication in the Workplace
• Assignment: Communication in the Workplace

Module 9: Group Dynamics

• Why It Matters: Group Dynamics
• Introduction to Group Dynamics
• Types of Groups
• Group Development
• Group Structure
• Group vs. Individuals
• Putting It Together: Group Dynamics
• Discussion: Group Dynamics

Module 10: Managing Groups and Teams

• Why It Matters: Managing Groups and Teams
• Introduction to Group and Team Management
• Groups vs. Teams
• Types of Teams
• Creating Effective Teams
• Team Players
• Introduction to Theories of Group and Teamwork
• Early Management Theories
• Modern Management Theories
• Managing Teams Today
• Putting It Together: Managing Groups and Teams
• Discussion: Managing Groups and Teams
• Assignment: Individual and Group Behavioral Theories Applied to the Workplace

Module 11: Conflict and Negotiation

• Why It Matters: Conflict and Negotiation
• Introduction to Conflict Management
• What Is Conflict?
• Types of Conflict
• The Conflict Process
• Conflict Management Styles
• Sources of Conflict in an Organization
• Conflict Management
• Introduction to Negotiation
• Negotiation vs. Conflict Management
• Stages of Negotiation
• Types of Negotiating Strategies
• Issues in Negotiation
• Third-Party Negotiations
• Negotiation
• Putting It Together: Conflict and Negotiation
• Discussion: Conflict and Negotiation

Module 12: Making Decisions

• Why It Matters: Making Decisions
• Introduction to Making Decisions in Different Organizations
• The Decision Making Process
• Biases in Decision Making
• Creativity in Decision Making
• Group Decision Making
• Introduction to Data and Managerialism in Decision Making
• Using Data to Make a Decision
• Big Data in Decision Making
• Managerialism and Decision Making
• Decision Making Tools
• Making Decisions
• Putting It Together: Making Decisions
• Discussion: Making Decisions

Module 13: Leadership

• Why It Matters: Leadership
• Introduction to the History of Leadership Theories
• The History of Leadership
• Early Trait Approach
• Behavioral Approach
• Contingency Approach
• Introduction to Leadership Styles and Topics
• Leadership Styles
• Trust and Leadership
• Leadership Roles and Issues
• Challenges to Leadership
• Introduction to Leadership vs Management
• Leader or Manager?
• Leader-Managers
• Putting It Together: Leadership
• Discussion: Leadership
• Assignment: Leadership and Management

Module 14: Organizational Structure

• Why It Matters: Organizational Structure
• Introduction to Organizational Structures and Their History
• What is Organizational Structure?
• History of Common Structures
• Modern Organizational Design
• Introduction to Choosing an Organizational Structure
• Organic versus Mechanistic Models
• Factors of an Organizational Structure
• Organizational Structure and Success
• Putting It Together: Organizational Structure
• Discussion: Organizational Structure

Module 15: Organizational Change

• Why It Matters: Organizational Change
• Introduction to Change Management
• Forces of Change
• Types of Change
• Resistance to Change
• Models of Change Management
• Introduction to Success and Failure in Change
• Crisis Management
• External Change Management
• Internal Change Management
• Putting It Together: Organizational Change
• Discussion: Organizational Change
• Assignment: Change Management and Conflict Resolution

This courseware includes resources copyrighted and openly licensed by multiple individuals and organizations. Click the words "Licenses and Attributions" at the bottom of each page for copyright and licensing information specific to the material on that page. If you believe that this courseware violates your copyright, please contact us .

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Top 8 Organisational Behaviour Theories: A Complete Overview

This comprehensive blog delves into the world of Organisational Behaviour. From the classic Scientific Management Theory to the modern X & Y Management Theory, these Organisational Behaviour Theories shape workplace dynamics. Continue reading this blog to understand how these frameworks drive organisational success.

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Get ready to explore the world of Organisational Behaviour Theories through our blog! This is where we simplify the complex ideas behind how people behave at work, making it directly relevant to your daily work. We’ll also look at different leadership styles and how companies balance having rules and allowing creativity. This blog will help you understand the hidden forces that shape our workdays. 

Table of Contents  

1) What is an Organisational Behaviour? 

2) Organisational Behaviour Theories 

   a) Scientific Management Theory 

   b) Bureaucracy Theory 

   c) Hybrid Organisation Theory 

   d) Informal Organisational Theory 

   e) Five bases of Power Theory 

   f) Human Relations Management Theory 

   g) Process Management Theory 

   h) X & Y Management Theory 

3) Importance of Organisational Behaviour Theories 

4) Conclusion 

What is an Organisational Behaviour?  

Organisational Behaviour is an interdisciplinary field of psychology, sociology, and anthropology. Its primary focus is to understand how individuals and groups behave within the context of an organisation. 

This field examines human behaviour in the workplace, group dynamics, and the overall organisational structure. By analysing behaviour from various perspectives, including individual actions, group interactions, and structural influences, Organisational Behaviour seeks to enhance our understanding of how organisations function.  

Organisational Behaviour Theories  

Organisational Behaviour Theories play a crucial role in guiding real-time evaluation and effective management of individuals within the workplace. Managers and human resources professionals benefit significantly from studying these theories, which provide valuable insights into employee behaviour, motivation, and performance. Among the most influential and effective Organisational Behaviour Theories are:  

1) Scientific Management Theory  

In 1909, Frederick Winslow Taylor published research that challenged the prevailing belief that encouraging people to work as hard as possible was the most effective way to boost productivity and optimise human resources. Instead, Taylor proposed a different approach. 

His revolutionary idea was to break jobs down into simple tasks and promote collaboration between managers and workers. This was a departure from the norm at the time, where factory managers and employees had minimal interaction. Without standardisation, workers were primarily motivated by monetary incentives, leading them to work only as much as required. 

Taylor advocated for rewarding workers based on their productivity levels, a concept that continues to influence management practices today. Over time, his theories transformed the professional landscape, fostering closer relationships between employees and managers. Managers now recognise the value of rewarding high-quality performance. 

Taylor’s four key principles for business leaders include matching workers to tasks based on their capabilities and monitoring worker performance to guide them in working efficiently. His ideas have left a lasting impact on Organisational Behaviour and Management practices. 

2) Bureaucracy Theory  

In organisational settings, it’s evident that certain individuals wield more influence than others. Hierarchies exist, and people either strive to ascend the corporate ladder or are content with their current status. The Bureaucracy Theory centres around the concept of authority within an organisation. Three primary types of authority characterise organisational structures: 

a) Charismatic authority: This power stems from a leader’s unique appeal or personal magnetism. Charismatic leaders inspire followers through their vision, personality, and ability to motivate. 

b) Legal authority: Legal authority is conferred upon an individual based on their official position or rank within the organisational hierarchy. It derives from formal rules, regulations, and job descriptions. 

c) Traditional authority: This arises from long-standing customs, beliefs, or historical traditions. Over time, people accept the legitimacy of this authority system, reinforcing its power. 

3) Hybrid Organisation Theory  

A hybrid organisation is a unique blend of social mission and commercial goals. Unlike traditional for-profit companies prioritising profit maximisation, hybrid organisations seek to create a positive social impact while remaining financially sustainable. 

These organisations operate at the intersection of business and social purpose. Key characteristics of Hybrid Organisation Theory include: 

a) Dual objectives: Hybrid organisations recognise that financial success and social impact are not mutually exclusive.  

b) Social mission: These organisations are driven by a clear social or environmental purpose.  

c) Innovative business models: Hybrids often adopt innovative business models that integrate social impact into their core operations. 

d) Measuring impact: Hybrid organisations track financial performance (profits, revenue) and social impact (number of lives improved, environmental footprint).  

4) Informal Organisational Theory  

Have you observed how people naturally form connections within a workplace? Perhaps you work in payroll but have become friends with someone from marketing, who, in turn, knows someone in the legal department. Before you know it, you’re all sharing lunch. 

Informal Organisational Theory acknowledges these hidden networks within formal company structures. These informal groupings can significantly influence performance—either positively or negatively. 

5) Five bases of Power Theory  

In Organisational Behaviour, power isn’t solely tied to titles—it thrives within relationships. To identify influential figures in your organisation, consider French and Raven’s Five bases Of Power Theory: 

a) Legitimate power: Those with legitimate power hold official titles, such as team leaders, managers, or executives. Their authority stems from their position within the hierarchy. 

b) Reward power: Individuals wield this power by rewarding others for meeting expectations. Whether through bonuses, promotions, or recognition, they motivate performance. 

c) Expert power: Subject Matter Experts (SMEs) possess specialised knowledge and skills. Their expertise makes them go-to resources for problem-solving and learning. 

d) Referent power: Derived from relational skills, referent power belongs to well-liked and respected individuals. They bridge gaps, foster collaboration, and build trust. 

e) Coercive power: Coercive power arises from emotional manipulation, often through punishment. Those who wield it can influence behaviour through fear or consequences. 

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6) Human Relations Management Theory  

These studies explored how social interactions between employees and managers impact business success. Key insights from the research include: 

a) Personal investment: Companies benefit when they invest in their employees as individuals, recognising their humanity beyond mere productivity. Treating employees with care and respect fosters loyalty and commitment. 

b) Rewards and recognition : Rewarding employees for their successes and skills enhances performance. Recognition, incentives, and a supportive work environment contribute to overall effectiveness. 

c) Positive group dynamics: Team dynamics significantly influence morale. A cohesive, collaborative atmosphere promotes productivity and job satisfaction. 

7) Process Management Theory  

Henri Fayol, a French Mining Engineer turned Management Theorist, pioneered Process Management Theory, also known as “Administrative Theory.” Unlike earlier theories that emphasised worker efficiency, Fayol shifted the focus to the overall organisation and structure of work tasks. Let’s explore some key points about Process Management Theory: 

a) Top-down approach: Fayol advocated a top-down approach to enhance organisational efficiency and decision-making. Effective management should guide the entire process. 

b) Work groups and departments: Fayol proposed creating distinct work groups and departments, each responsible for unique activities. This division of labour streamlines operations. 

c) Correlation with productivity: Fayol believed that well-organised management directly correlates with workers’ productivity. A smoothly functioning organisation leads to better outcomes. 

8) X & Y Management Theory  

Working in the 1950s and 1960s, Douglas McGregor developed the X&Y Management Theory. According to this theory, all managers and supervisors can be categorised into two distinct groups: 

Theory X Managers:  

a) Perception: These managers view employees negatively, believing they need external pressure to work hard. They tend to micromanage and closely monitor tasks. 

b) Assumptions: Employees lack intrinsic motivation and must be controlled through strict supervision and discipline. 

c) Approach: Theory X Managers emphasise compliance and often rely on carrot-and-stick methods. 

Theory Y Managers:  

a) Beliefs: Theory Y Managers hold a positive view of employees. They believe that individuals are inherently motivated to work. 

b) Approach: These managers focus on empowering employees. They provide development opportunities, trust employees to handle tasks independently, and foster a collaborative work environment. 

c) Team culture: Theory Y Managers create welcoming workplaces encouraging cohesion, cooperation, and mutual respect. 

McGregor’s conclusion:  

McGregor argued that Theory Y Managers achieve better results. Organisations can enhance morale, productivity, and profitability by combining a positive team environment with personalised growth opportunities. 

Importance of Organisational Behaviour Theories  

For managers, grasping Organisational Behaviour has never been more crucial. These theories underpin a company’s competitiveness and success. Beyond economic compensation, employees consider various factors when deciding to stay, making it essential for companies to understand these variables. 

Here are the key reasons why Organisational Behaviour Theories matter in understanding and managing human behaviour within organisations:  

Predicting employee behaviour  

These theories help managers anticipate how individuals and groups behave within the organisation. Informed decisions, setting expectations, and scenario planning rely on understanding employee behaviour. 

Fostering employee motivation  

Managers can create supportive work environments by comprehending employee needs and applying motivational theories. Addressing these needs inspires higher engagement, commitment, and performance. 

Promoting systematic leadership  

Organisational Behaviour replaces guesswork with evidence-based study and research. Informed decision-making and effective leadership result from this systematic approach. 

Streamlining HR strategies  

Insights from Organisational Behaviour Theories guide HR professionals. Tailoring recruitment, retention, and talent development efforts optimise workforce management. 

Enhancing employee engagement  

These theories provide tools to boost job satisfaction and engagement. Engaged employees are more productive and committed. 

Boosting team dynamics  

Understanding team dynamics enables effective teamwork. Managers can build and lead high-performing teams based on this knowledge. 

Improving performance  

Organisational Behaviour Theories identify factors hindering success. Addressing these leads to better corporate performance. 

Conflict resolution and ethical behaviour  

Underztanding conflict dynamics and ethical decision-making fosters a harmonious work environment. 

In summary, Organisational Behaviour Theories empower managers to create thriving workplaces, enhance productivity, and uphold ethical standards. 

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Conclusion  

Organisational Behaviour Theories serve as guiding lights for effective management. Organisations can create thriving workplaces by understanding human behaviour, fostering motivation, and promoting positive team dynamics. These theories empower leaders to make informed decisions, enhance productivity, and uphold ethical standards. As we navigate the ever-evolving corporate landscape, embracing Organisational Behaviour principles remains essential for success. 

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Frequently Asked Questions

Managers benefit from understanding these theories because they predict employee behaviour, foster motivation, and guide decision-making. By applying these insights, managers can create positive work environments and enhance organisational performance. 

Organisational Behaviour Theories influence HR practices by providing insights into employee motivation, job satisfaction, and team dynamics. Tailoring HR strategies based on these theories optimises recruitment, retention, and talent development efforts. 

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Module Catalogue

Ib700-10 organisational behaviour.

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• Description
• Availability

Introductory description

The module provides students with an understanding of the antecedents and consequences of behaviour in organisations, with particular emphasis on the management process.

Module web page

Module aims

The module has both intellectual and practical aims. Intellectually, the module takes a broad view of organisational behaviour and explores the links between psychology, organisational psychology, organisational sociology and management science as an aid to an understanding of people’s behaviour and experience of work in organisations.

At a practical level, the module examines current organisational practices such as motivation and team working. This reflects the fact that the vast majority of students taking the module are pursuing careers in management and/or in public agencies concerned with work and employment. It is in these very organisations where familiarity with, and expertise in, these areas are of key importance.

An understanding of the interaction between people and the organisations in which they work is key to the development of the analytical, problem-solving, and management skills which are the key focus of the Warwick MBA degree.

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

1: What is Organizational Behaviour? Key Concepts, Approaches and Implications

2: Motivation

3: Groups and Teams

• Organisational Culture

5: Organisational Structure

8: Institutions

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate a comprehensive understanding of how organisational behaviour has evolved as a field, including its foundations in individual and collective action, and the roles of culture, power and ethics
• Demonstrate critical familiarity with the literature, both theoretical and practical, located within its historical and methodological context
• Demonstrate a critical appreciation of how ethical considerations are central to managerial decision making in the broader socio-political context
• Critically reflect upon the main challenges organisational behaviour faces today, on how these relate to current organisations, and on how organisational behaviour can underpin our understanding of what management and leadership entail

Indicative reading list

Knights, D. and Willmott, H. (2017) Introducing Organizational Behaviour and Management (3rd edn) Hampshire: Cengage Learning EMEA

Bolman, L. and Dear, T. (2017) Reframing Organisations – Artistry, Choice, and Leadership (6th edn) Hoboken, NJ: Wiley

King, D. and Lawley, S., 2019. Organizational behaviour. Third edition. Oxford: Oxford University

Subject specific skills

Evaluate the different research methods used in the study of organisational behaviour and their practical implications for management

Evaluate concepts, models and perspectives for understanding the paradoxical nature of organisations as embodying characteristics of stability and change, clarity and ambiguity, planning/design and emergence, certainty and open-endedness

Evaluate and apply theories learnt to specific complex organisational contexts, and think through the implications of a chosen policy for a particular organisation, anticipating possible outcomes and how these might be dealt with by management

Transferable skills

Written communication

Leadership skills

Private study description

Preparation for lectures

No further costs have been identified for this module.

You do not need to pass all assessment components to pass the module.

Assessment group A4

Feedback on assessment

Feedback via myWBS, plus verbal for group work

Pre-requisites

Post-requisite modules.

If you pass this module, you can take:

• IB9QE-10 Leading and Managing Change
• IB9PQ-10 Leading Global Organisations
• IB9LY-10 Management of Change
• IB9S3-10 Leading and Managing Change
• IB822-10 Leading and Managing Change

This module is Core for:

• Year 1 of TIBS-N1Q1 Postgraduate Business Administration (Executive) London
• Year 1 of TIBS-N1Q4 Postgraduate Business Administration (Executive) London
• Year 1 of TIBS-N1Q5 Postgraduate Business Administration (Executive) London
• Year 1 of TIBS-N1P9 Postgraduate Taught Business Administration (Executive)
• Year 1 of TIBS-N1Q3 Postgraduate Taught Business Administration (Executive)

This module is Core optional for:

Supportive Model of Organisational Behaviour

What is the supportive model.

The supportive model approach states that employees are self-motivated and have value and insight to contribute to the organization, beyond just their day-to-day role. It is built around the concept of leadership .

In this model, the concept of leadership is presented with a managerial point of view, where the manager actually leads his/her employees by setting good examples, being available and by being involved in the various work tasks.

In other words, the manager strives to create a supportive working atmosphere for the workers.

Goal of the supportive model in OB

Given that the supportive model is based on the premise that employees are self-motivated and take pride in their work and want to deliver good results for the organisation, then the supportive model attempts to leverage this self-motivation through support and involvement of the employee’s direct management.

Role of the manager

The supportive model of organisation behaviour, the manager needs to be seen as a positive support facilitator for staff. The manager should be committed to all employees, with the intent of getting the best out of each of them.

This management approach should result in a high degree of employee satisfaction, which would further improve performance over time.

This management and highlights the view that employees are key asset of the organization that should be nurtured and developed and an appropriate corporate culture created that helps foster a positive environment.

Related topics

The five models of organisational behaviour

About The Author

Geoff Fripp

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Organisational Behaviour

Everything you need to know about organisational behaviour. The field of organisational behaviour deals with human behaviour in organisation.

It is the multidisciplinary field that seeks knowledge of behaviour in organisational settings by objective based on studying individual, group and oganisational processes.

The role and field of organisation behaviour is not only concerned with a particular organisation. The concepts and approaches of organisation behaviour are also more concerned with the society.

According to L. M. Prasad, “Organisational behaviour can be defined as the study and application of knowledge about human behaviour related to other elements of an organisation such as structure, technology and social systems.”

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Learn about:-

1. Introduction to Organisational Behaviour 2. Meaning and Definitions of Organisational Behaviour  3. Scope of Organisational Behaviour  4. Nature 5. Characteristics 6. Levels 7. Models

8. Ethical Perspective 9. Objectives 10. Aspects 11. Elements 12. Roles 13. Principles 14. Factors

15. Goals 16. Processes to Modify and Integrate 17. Significance 18. Importance 19. Challenges Faced 20. Limitations 21. Future.

Organisational Behaviour: Introduction, Meaning and Definitions, Scope, Nature, Characteristics, Levels, Models and a Few Others

• Introduction to Organisational Behaviour
• Meaning and Definitions of Organisational Behaviour
• Scope of Organisational Behaviour
• Nature of Organizational Behaviour
• Characteristics of Organisational Behaviour
• Levels of Organizational Behavior
• Models of Organizational Behavior
• Ethical Perspective on Organisational Behaviour
• Objectives of Organisational Behaviour
• Aspects of Organisational Behaviour
• Elements of Organisational Behaviour
• Roles of Organisational Behaviour
• Principles of Organisational Behaviour
• Factors Affecting Organisational Behaviour
• Goals of Organisational Behaviour
• Processes to Modify and Integrate Organisational Behaviour
• Significance of Organizational Behavior
• Importance of Organisational Behaviour
• Challenges Faced by Organizational Behavior
• Limitations of Organizational Behavior
• Future of Organizational Behavior  

Organisational Behaviour – Introduction

The study of Organizational Behavior (OB) is very interesting and challenging too. It is related to individuals, group of people working together in teams. The study becomes more challenging when situational factors interact. The study of organizational behavior relates to the expected behavior of an individual in the organization.

No two individuals are likely to behave in the same manner in a particular work situation. It is the predictability of a manager about the expected behavior of an individual. There are no absolutes in human behavior. It is the human factor that is contributory to the productivity hence the study of human behavior is important. Great importance therefore must be attached to the study.

Researchers, management practitioners, psychologists, and social scientists must understand the very credentials of an individual, his background, social framework, educational update, impact of social groups and other situational factors on behavior.

Managers under whom an individual is working should be able to explain, predict, evaluate and modify human behavior that will largely depend upon knowledge, skill and experience of the manager in handling large group of people in diverse situations. Preemptive actions need to be taken for human behavior forecasting.

The value system, emotional intelligence, organizational culture, job design and the work environment are important causal agents in determining human behavior. Cause and effect relationship plays an important role in how an individual is likely to behave in a particular situation and its impact on productivity.

An appropriate organizational culture can modify individual behavior. Recent trends exist in laying greater stress on organizational development and imbibing a favorable organizational culture in each individual. It also involves fostering a team spirit and motivation so that the organizational objectives are achieved.

There is a need for commitment on the part of the management that should be continuous and incremental in nature.

Organisational Behaviour – Meaning and Definitions: According to K Aswathappa, Stephen P. Robbins, L. M. Prasad, Newstram and a Few Others

In words of K Aswathappa, “OB is the study of human behaviour in organisational setting, of the interface between human behaviour and organisation and of the organisation itself.”

In words of Stephen P. Robbins, “OB is a field of study that investigates the impact that individuals, groups and structures have on behaviour within organisations for the purpose of applying such knowledge towards improving an organisation’s effectiveness.”

According to Davis and Newstram, “Organisational behaviour is the study and application of knowledge about how people act within organisations.”

According to Fred Luthans, “Behaviour is directly concerned with the understanding, prediction and control of human behaviour in organisations.”

In words of John Newstram and Keith Devis, “Organisational behaviour is the study and application of knowledge about how people as individuals and as groups act within organisations. It strives to identify ways in which people can act more effectively.”

OB is the study of individual behaviour in isolation, when in group and as a part of an organisation. The study of individual behaviour only, would be incomplete because behaviour is affected by the people surrounding us as well as by the organisation, in which we work. Studying only individuals or only organisations would be of no use. It is essential to study both simultaneously.

Personality, perception, learning, attitude, family background, training, motivation, job satisfaction, performance appraisal, leadership effectiveness, norms, values and ethics are the factors which affect the individual behaviour. Group dynamics, communication, organisational environment, individual and organisational culture affect group behaviour. Organisational structure, power & politics, status, relation with juniors & seniors, conflicts and culture affect the individual behaviour in the organisation.

These various factors relate to different disciplines including psychology, sociology, social psychology, political science, anthropology, etc.

Study about individual behaviour, group behaviour and organisations give the inferences about how different people react to different situations. It guides regarding the motivation styles and the leadership styles to be adopted for different persons. Due to the individual differences, diverse leadership styles, incentive schemes, motivators, communication styles should be applied.

Study of organisational behaviour helps in studying:

i. Why people behave in a particular way?

ii. Why one person is more effective than the other?

iii. Why one group is more effective than the other?

iv. Why one person is more effective in one organisation as compared to the other organisations?

The study of above things gives sound knowledge about human behaviour and this knowledge can be applied in shaping the behaviour and taking various decisions related to policy making in human resource management.

Organisational Behaviour – Scope

The scope of the organizational behavior is as under:

Impact of personality on performance

Employee motivation

How to create effective teams and groups

Study of different organizational structures

Individual behavior, attitude and learning

Design and development of effective organization

Impact of culture on organizational behavior

Management of change

Management of conflict and stress

Organizational development

Organizational culture

Transactional analysis

Group behavior, power and politics

Study of emotions

The field of the organizational behavior does not depend upon deductions based on gut feelings but attempts to gather information regarding an issue in a scientific manner under controlled conditions. It uses information and interprets the findings so that the behavior of an individual and group can be canalized as desired.

Large number of psychologists, social scientists and academicians has carried out research on various issues related to organization behavior. Employee performance and job satisfaction are determinants of accomplishment of individual and organizational goals.

Organizations have been set up to fulfill needs of the people. In today’s competitive world, the organizations have to be growth-oriented. This is possible when productivity is ensured with respect to quantity of product to be produced with zero error quality. Employee absenteeism and turnover has a negative impact on productivity.

Employee who absents frequently cannot contribute towards productivity and growth of the organization. In the same manner, employee turnover causes increased cost of production. Job satisfaction is a major factor to analyze performance of an individual towards his work. Satisfied workers are productive workers who contribute towards building an appropriate work culture in an organization.

Organizations are composed of number of individuals working independently or collectively in teams, and number of such teams makes a department and number of such departments makes an organization. It is a formal structure and all departments have to function in a coordinated manner to achieve the organizational objective.

It is therefore important for all employees to possess a positive attitude towards work. They need to function in congenial atmosphere and accomplish assigned goals. It is also important for managers to develop an appropriate work culture. Use of authority, delegation of certain powers to subordinates, division of labor, efficient communication.

Benchmarking, re-engineering, job re-design and empowerment are some of the important factors so that an organization can function as well-oiled machine. This is not only applicable to manufacturing organizations but also to service and social organizations.

Organisational Behaviour – Nature: A Separate Field of Study and Not a Discipline Only, An Interdisciplinary Approach, An Applied Science and a Few Others    

Organizational behaviour has emerged as a separate field of study.

The nature it has acquired is identified as follows:

1. A Separate Field of Study and Not a Discipline Only :

By definition, a discipline is an accepted science that is based on a theoretical foundation. But, O.B. has a multi- interdisciplinary orientation and is, thus, not based on a specific theoretical background. Therefore, it is better reasonable to call O.B. a separate field of study rather than a discipline only.

2. An Interdisciplinary Approach:

Organizational behaviour is essentially an interdisci­plinary approach to study human behaviour at work. It tries to integrate the relevant knowledge drawn from re­lated disciplines like psychology, sociology and anthro­pology to make them applicable for studying and analysing organizational behaviour.

3. An Applied Science:

The very nature of O.B. is applied. What O.B. basically does is the application of various researches to solve the organizational problems related to human behaviour. The basic line of difference between pure science and O.B. is that while the former concentrates of fundamental researches, the latter concentrates on applied researches. O.B. involves both applied research and its application in organizational analysis. Hence, O.B. can be called both science as well as art.

4. A Normative Science:

Organizational Behaviour is a normative science also. While the positive science discusses only cause effect relationship, O.B. prescribes how the findings of applied researches can be applied to socially accepted organizational goals. Thus, O.B. deals with what is accepted by individuals and society engaged in an organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is normative as well that is well underscored by the proliferation of management theories.

5. A Humanistic and Optimistic Approach:

Organizational Behaviour applies humanistic approach towards people working in the organization. It, deals with the thinking and feeling of human beings. O.B. is based on the belief that people have an innate desire to be independent, creative and productive. It also realizes that people working in the organization can and will actualise these potentials if they are given proper conditions and environment. Environment affects performance or workers working in an organization.

6 A Total System Approach:

The system approach is one that integrates all the variables, affecting organizational functioning. The systems approach has been developed by the behavioural scientists to analyse human behaviour in view of his/her socio-psychological framework. Man’s socio- psychological framework makes man a complex one and the systems approach tries to study his/her complexity and find solution to it.

Organisational Behaviour – 6 Important Characteristics

According the Keith Davis, ‘Organisational behaviour is an academic discipline concerned with understanding and describing human behaviour in an organisational environment’. It seeks to shed light on the whole complex human factor in organisations by identifying causes and effects of that behaviour.

Another definition provided by Joe Kelly states, ‘Organisational behaviour is the systematic study of the nature of organisations, how they begin, grow, develop, and their effect on individual members, constituent groups, other organisations and larger institutions’.

Modern organisational behaviour is characterised by the acceptance of a human resource model. It takes a more positive view of human beings. People are accepted as they are and not prejudged using stereotypes.

Some of the important characteristics of organisational behaviour are discussed as follows:

1. Organisational behaviour is a rational thinking, not an emotional feeling about people. The major goals of organisational behaviour are to explain and predict human behavioural in organisations. It is action-oriented and goal-directed.

2. Organisational behavioural seeks to balanced human and technical values at work. It seeks to achieve productivity by building and maintaining employee’s dignity, growth and satisfaction, rather than at the expense of these values.

3. Organisational behaviour integrates behavioural sciences. Many of its core concepts are borrowed from others fields and discipline like social psychology, sociology, and anthropology, etc.

4. Organisational behaviour is both a science and an art, the knowledge about human behaviour in organisations leans towards being science. Modern organisational behaviour is, at once, empirical, interpretative, and critical. It is an interpretative science in the pursuit of knowledge and meaning.

The basic purpose is to make meaningful the facts of organisational life. Modern OB is an optic perspective; a process for looking at events, a way of life. It has empirical facts, and interesting interpretations and powerful paradigms.

However it is an inaccurate science to provide specific answers to specific organisational problems. As such very little can be prescribed to consistently predict relationships between a variable on broad scale. The skills in applying the knowledge clearly lean towards being art.

5. Organisational behaviour exists at multiple like levels. Behaviour occurs at the individual, the group, and the organisational systems levels. Behaviour that is attributable to each of these levels can be both identified and isolated but at the same time these three levels interact with each other and OB-being affected by the behaviour of individuals, group level behaviour is affected by the organisational level phenomena and so on.

6. Organisational behaviour does not exist in vacuum. Organisations are made up of both social and technical components and therefore characterized as social-technical systems. The operational implication of this is that any approach of looking at behaviour must also take into account the technical component of organisation especially such issues as the nature of work and the technology. Organisations at the same time, must take into account the constructs of the working environment, for example, the extent to which the market and the product is changing.

Organisational Behaviour – 3 Levels : Individual, Group and Organisational Level

OB can be defined as actions and behaviors of individuals and groups towards and their impact on the organization’s overall functioning and performance. OB can be studied at various levels within an organization, and each level has a unique set of roles, responsibilities, and goals.

Following points discuss the three levels briefly:

1. Individual Level – Deals with the concepts at the individual level. Examples of individual-level concepts are perception, personality, learning, motivation, and attitude.

2. Group Level – Deals with the concepts at the group level. Examples of group-level concepts are team, conflict, leadership, power, and politics. Group-level concepts may include how groups are formed, how to make effective teams, how individually and collectively the group activities can be improved, how to motivate employees, and which type of group would be suitable for a particular assignment.

3. Organizational Level – Deals with the concepts at the organizational level. Examples of organizational-level concepts are change management and organizational culture. Other topics discussed at organizational level include the concept of organization, different organizational models, and organizational change along with its impact and implementation. The working conditions and stress management are also discussed at the organizational level.

Organisational Behaviour – Four Major Models : Autocratic, Custodial, Supportive and Collegial

There are four major models or frameworks that organizations operate out of-

1. Autocratic,

2. Custodial,

3. Supportive, and

4. Collegial.

1. Autocratic:

The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal.

2. Custodial:

The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation.

3. Supportive:

The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives.

4. Collegial:

The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm.

Although there are four separate models, almost no organization operates exclusively in one. There will usually be a predominate one, with one or more areas over-lapping in the other models.

The first model, autocratic, has its roots in the industrial revolution. The managers of this type of organization operate mostly out of McGregor’s Theory X. The next three models begin to build on McGregor’s Theory Y. They have each evolved over a period of time and there is no one best model. In addition, the collegial model should not be thought as the last or best model, but the beginning of a new model or paradigm.

Organisational Behaviour – Ethical Perspective on Organisational Behaviour (OB)

Emergence and Ethical Perspective :

Organisational behaviour has emerged gradually, right from inception of social organisation. The main factor which promoted the growth of OB was understanding the needs and motives of the people engaged in organisational activities. Individual’s desires and wants were focused on the activities devoted to obtain material means of satisfaction of his wants.

In this context, one can observe that it has direct link between labour, capital and management. The fact that needs of the labour force have not been given adequate importance by the management. The discontent at the work places becomes severe due to bad working conditions, occupational diseases and the unhealthy atmosphere.

Poor workers had to work just for survival. There was no consideration to improve human relation to create behavioural satisfaction of the working class. The discontent at the work places becomes uncontrollable and resulted in industrial revolution in England in the latter half of the 18th century.

This action of the labour force brought them some relief in wages and relief measures in work places. In this regard, Robert Owen, a factory owner in Wales was the first person, who realised the needs of workers in his factory. He is sometimes referred to as the forerunner of Personnel Management.

The actual development of OB started from 1900 AD. The period witnessed scientific management of F.W. Taylor. He could inspire through his scientific management to a certain extent, workers to motivate their interest in work. Taylor advocated that improved working conditions can increase productivity. His approach made the initial momentum for OB. He believed in technical efficiency so much that this efforts could bring awakening among the workers.

It was during the First World War that ‘Human relation movement’ really got a significant support from the American Management Association, which took keen interest in the human factor in industry. This paved the way for the organisation for well-known conference in New York in 1918.

During this period Whiting Williams was conducting a research study on workers. Later on, he published his work entitled, “What is in the workers’ mind?” In the year 1920, The book of Williams had awakened thinking among the entrepreneurs and the intellectuals all over the world about importance of human relations in industry.

Elton Mayo and Roithlesberger of Harvard University stressed the importance of “Human behaviour at work places.” Their famous experiment of Hawthrone Electric Company helped in understanding the basic idea of social System within the working environment and the human problems to be solved by understanding in human factor at work.

During the Second World War and thereafter, this concept of human behaviour and an integrated relationship between management and workers gained much weightage amongst the industrialists and academicians. The contemporary organisational behaviour, by and large, became a full-fledged subject (Social Discipline) by the end of 1950 in the management field.

OB has contributed to management through its principles like setting of the goal in organisations, measures for assessing performance like MBO in performance appraisal, etc. In these fields, the contributions of Peter Drucker and Mc Gregor are worth mentioning.

The ethical or human conduct in organisation improved remarkably after the Hawthrone experiment. Milgrams Obedience to Authority Study and the Management Trust (MBT) by R.S. Dwivedi are of immense value to Human Behaviour Studies.

The salient features of ethical perspective are given below:

i. Higher performance criteria.

ii. Subordinates have been given the freedom to control and execute the work with proper accountability.

iii. Understanding and providing job security to workers and also recognising them as human beings.

iv. Workers’ sense of belongingness to the organisation.

v. Acknowledging that in an organisation the informal group has a great role over the ethical aspects of workers and their performance

vi. To achieve objectives, the leadership has a responsibility to suitably change the behaviour pattern of the workers.

vii. A shift from the unions’ collective relations, OB has led to individualisation of collective relations.

viii. Employees’ commitment is achieved by giving more power to them by cooperative decision making.

ix. Human relations to promote “Neo-unitarianism” (a new type of relation based on consensus and belief between the workers and management).

x. OB directs the employees to Quality of Work Life (QWL).

Organisational Behaviour – 10 Important Objectives

There are several objectives of organisational behaviour and some of them are briefly stated here:

(i) To analyse different perspective and potentialities to create and develop the ethical values in an organisation,

(ii) To analyse the potentialities towards the ways and means to conduct and organise the systems, methods and approaches for organisation development in an organisation,

(iii) To analyse the potentialities to develop process, methods and approaches of formal and informal patterns of organisation and society,

(iv) To analyse how to make perspective methods and process of effective communication to formulate ethical norms in an organisation,

(v) To analyse various aspects and factors affecting the group cohesiveness,

(vi) To analyse the ways and means to develop different ethical aspects for group dynamism,

(vii) To analyse the mutual interest of individual and group. Mutual interest is represented by the statement ‘Organisation needs people, and people also need organisation’,

(viii) To analyse and evaluate the role of different key elements like people, structure, technology interactive behaviour and environment etc.

(ix ) To analyse and evaluate the behavioural approaches in organisation. In context of that all of them are based on ‘Art’ and ‘Science’,

(x) To analyse different aspects of work environment which duly affects the behavioural patterns and attitudes of persons.

Organisational Behaviour – 4 Basic Aspects

In any organisation the area of behavioural and interactive aspects are much concerned with human behaviours. It is a dynamic and multidisciplinary field that seeks knowledge of behaviour in organisational structure by properly studying individual, group and organisational processes.

(i) Organisation behaviour focuses on three levels of analysis- individuals, groups and organisations. In any organisation, people frequently work together in groups and teams. The individual and group both influence the organisation and are influenced by the environment in overall society,

(ii) Organisation behaviour is multidisciplinary in nature. The field of OB is likely to consider a wide variety of approaches. These approaches are based on individual and group oriented,

(iii) Organisation behaviour and its aspects are more relevant to different disciplines. The learning areas are relevant to different disciplines like psychology, groups’ dynamics, sociology, organisational culture, anthropology, interpersonal conflicts, political science, management science, etc.,

(iv) Organisational behaviour are applicable in behavioural science. OB refers to seek knowledge and behavioural patterns in organisation. It develops the process and methods of behavioural approaches.

Organisational Behaviour – 5 Key Elements: People, Structure, Technology, Interactive Behaviour and Environment

Organisation behaviour is an integrated process by which the role and behaviour of people are incurred. Indian ethical norms emphasised for better work environment with behavioural aspects. In order to perform interactive and mutual tasks and to develop some behavioural aspects, certain key elements or constitutes are to be included. These element may develop the interactive aspects for the well-being of persons.

As such, the key elements of organisational behaviour are stated here:

Element # 1. People :

People makes the interactive and behavioural platform in any organisation and people consists in the form of individuals and group. The role and behaviour of people identifies, recognise and develop the interactive relations towards behavioural attitudes in society.

Element # 2. Structure :

The formal relationship of people makes the structural design in organisation. The managerial and organisational levels are decorated by specific job as well as level to be incurred in structural design. The rights and responsibilities are also being determined in a particular group or structure.

Element # 3. Technology :

The technology represent all the resources with which people work and affects the task that they perform. The role and utilisation of technology has a significant influence on the performance of people and thereby to achieve perfections in the betterment of interactive behaviour.

Element # 4. Interactive Behaviour :

In any organisation, the interactive relations and behaviour between individual and groups as well as the relations by formal and informal ways also have an important role to make perspectives in organisational behaviour. The mutual behaviour among people may be developed by the identification, existence and interactive role in any organisation and society.

Element # 5. Environment :

All organisations operates within internal and external environment. The existence, structural design, work performance, mutual relations and behavioural patterns are duly influenced by the internal and external environmental factors.

Organisational Behaviour – Roles: Understanding Human Behaviour, Controlling and Directing Behaviour and Organisational Adaptation

1. understanding human behaviour:.

Organisational Behaviour provides a way for understanding human behaviour in the organisation.

Organisational Behaviour can be understood at the individual level, interpersonal level, group level and intergroup level.

(a) Individual Level:

It provides for analysing why and how an individual behaves in a particular way.

Human behaviour is a complex phenom­enon and is affected by a large number of factors:

1. Psychological

3. Cultural

Organisational Behaviour integrates these factors to provide simplicity in understanding human behaviour.

(b) Interpersonal Level:

Interpersonal interaction is normally in peer relationship which represents mans most natural attempt at socialisation. Two person relationship is inevitable in the organization. Analysis of-

i. Reciprocal relationship

ii. Role analysis and

iii. Transitional Analysis

Are some of the common methods which provide such un­derstanding.

(c) Group Level:

Group pressures become a force in shaping human behav­iour.

Research in group dynamics has contributed vitally to organisational behaviour and shows how a group behaves in its:

ii. Cohesion

iv. Procedures

v. Communication pattern

vi. Leadership and

vii. Membership

Understanding group relationships is very important for organisational morale and productivity.

(d) Intergroup Level:

The organisation is made up of many groups that develop a complex of relationships to build its process and substance.

Intergroup relationship may be in the form of cooperation or competition.

Organisational Behaviour helps in understanding and achieving cooperative group relationships through:

i. Interaction

ii. Rotation of members among groups

iii. Avoidance of win-lose situation

iv. Focus on total group objectives

2. Controlling and Directing Behaviour:

After understanding the mechanism of human behaviour, managers are required to control and direct the behaviour so that it conforms to standards required for achieving organisational objectives.

Organisational Behaviour helps managers in the following areas:

(a) Use of Power and Sanction:

i. Organisational Behaviour can be controlled and directed by the use of power and sanctions which are formally prescribed by the organisation.

ii. Power is referred to as capacity of an individual to take certain action and may be utilised in many ways.

iii. Organisational Behaviour explains how various means of power and sanction can be utilised so that both organisational and individual objectives are achieved simultaneously.

(b) Leadership:

Organisational Behaviour brings new insights and under­standing to the theory of leadership.

It identifies various leadership styles available to a manager and analyses which style is more appropriate in a given situ­ation.

(c) Communication:

i. It is communication through which people come in con­tact with others.

ii. To achieve organisational effectiveness the communi­cation must be effective.

iii. The communication process and how it works in inter­personal dynamics has been evaluated by Organisational Behaviour.

(d) Organisational Climate:

i. Organisational climate refers to the total organisational situations affecting human behaviour.

ii. Organisational Behaviour suggests the approach to create organisational climate in totality rather than merely improving the physiological conditions or in­creasing employees satisfaction by changing isolated work process.

iii. Organisational Behaviour states that it is very impor­tant to create an atmosphere of effective supervision, the opportunity for the realisation of personal goals, con­genial relations with others at the work place and a sense of accomplishment.

3. Organisational Adaptation:

i. Organisations, as dynamic entities, are characterised by pervasive change.

ii. Organisations have to adapt themselves to the envi­ronmental changes by making suitable internal arrange­ment.

iii. Managers have to face dual problems- Identifying need for change and then implementing the changes without adversely affecting the need for satisfaction of organisational people.

Organisational Behaviour – 2 Main Principles: Nature of the People and Organisation

Applying the knowledge of organisational behaviour in management is to make management more purposeful and practical. Management is managing the activities of people. When dealing with an individual, it is of vital importance to understand the individual and his behaviour.

Knowledge of OB for a manager in modern organisation enables him to be more effective. Therefore, the relation between management and OB should be understood by every manager.

Organisational behaviour is based mainly on two main principles:

1. Nature of the people, and

2. Nature of the organisation.

1. Nature of the People:

In this, we have to know the:

(i) Individual differences,

(ii) Whole person,

(iii) Caused behaviour, and

(iv) Human dignity.

(i) Individual Differences:

Every individual is different from the other in respect of intelligence, habit, nature, attitude, etc. This individual difference is the outcome of his psychological aspects. Organisational behaviour is a part of psychology.

An individual with psychological differences will show the same in his behavioural pattern in an organisation. Management (Manager) has to behave differently with different persons. This knowledge is provided to management by the study of OB.

(ii) Whole Person:

An individual is a whole person with physical and psychological aspects. Therefore, we cannot deal with a person by part. For example, an employee working in an organisation has a lot of personal problems worrying him. It is not possible for him to perform the work by keeping away these problems at home and work efficiently with his physical capability alone.

No one can separate the physical and psychological aspects and deal with the individual. Hence, the knowledge of OB and management has to be integrated and the problem of an individual probed to find out remedial action to solve it considering the individual as a whole person. Solving the problem will become quite easy, if the relation between OB and management is well-understood by the manager.

(iii) Caused Behaviour:

This is a reaction in an individual due to some needs and wants, which he has to satisfy. These may be financial or non-financial. This caused behaviour has to be regulated by proper motivation. Hence the management and OB have to work together to understand the exact nature of the need of an individual to be satisfied and the desired incentive to be provided to the individual so as to help satisfy his needs.

(iv) Human Dignity:

People in an organisation have some strong beliefs and possess certain value systems of their own. Let it be a manager or a worker; each possesses the dignity of his position and role in the organisation. An individual, who possesses a strong value system may not compromise it simply, as such he has to be given the deserving value and recognition. Related approach of OB and management will be of great help in such a situation.

2. Nature of Organisation:

Nature of organisation has two aspects:

(i) Social system.

(ii) Mutual interests.

(i) Social System:

Organisational activities are controlled by social and psychological norms. People have psychological needs and motives, at the same time, they are bound to shoulder social responsibility, according to their role in the organisation.

The behaviour of people in an organisation is normally governed by the group and by individual’s desire. One can find the above two types of norms operating. Due to proper interaction of these norms, organisational activities become cordial and efficient.

(ii) Mutual Interests:

These always bring cooperation and confidence among people. It is the source of sound organisational behaviour. People and organisation are interdependent like OB and management. People need organisation for livelihood on the other hand, the organisation needs people for achieving its goals. So the relation between OB and management can bring all round progress, if both have amiable relationship between them.

Organisational Behaviour – 5 Key Factors Affecting Organisational Behaviour : Individual, Group, Organisational Structure, Technology and Business Environment

OB is the study of individuals, groups and organisations for better understanding and production of desired results. The factors which affect the individuals, groups and organisations affect the organisational behaviour also. Along with that, the technology which is adopted in organisations and the environment surrounding, the organisation also affects the OB.

These factors affect OB in the following manner:

Factor # 1. Individual:

People are valuable resources of every organisation. Individual is the most important component of OB. In fact, the study of OB revolves around individual, intrapersonal forces, study of interpersonal forces and study of an individual in an organisational setting.

Every individual differs from other, everyone behaves differently; however, those who behave same may be placed in one category and study can be made for each category so as to describe, understand, predict and control their behaviour. The factors which affect the individual also affect OB. For example, personality, attitude, learning, perception, values, ethics, norms, motivation, culture, thought process, family background, etc.

Factor # 2. Group:

An organisation is a group of two or more persons, who collectively work for attainment of set objectives on a continuous basis. An individual behaves differently when he is in group, instead of that when he is alone. Even the behaviour is different when he is in different groups e.g., when supervisor is accompanied with subordinates and when he is in company of other supervisors.

Under the study of OB, efforts are made to study conduct of people, when they are in a group. Therefore, group factors such as communication, group processes, group decision making, comparative values, cross cultural attitudes, etc., affect OB.

Factor # 3. Organisational Structure/Design:

Organisational structure or design depends on division of work, departmentalisation, hierarchy and coordination. These factors vary in different organisations. Moreover, power relationships, extent of decentralisation, reporting methods and work procedures also differ in organisations.

These factors affect the individual and the OB. It becomes easier to get desired behaviour from employees when organisational design happens to be effective. If employees like the organisational structure, they are motivated and work happily in the organisation and vice-versa.

Factor # 4. Technology:

The most important thing to achieve organisational goals is performance of assigned jobs by the employees. If the employees perform their jobs in time, then only organisational goals can be achieved. The work is performed with the help of technology i.e. with technique and equipment.

If the technology and equipment matches the choice of employees, they will be satisfied and tasks will be performed efficiently on time and vice versa. Thus, technology and equipment affect the employees’ behaviour as well as OB.

Factor # 5. Business Environment:

The surroundings of a business in which it operates is called business environment. Business environment is composed of external and internal factors. External environment can also be classified as micro environment (which are controllable by firm and vary from industry to industry) and macro environment (which affects the whole economy).

Various environmental factors which affect organisation includes social, technological, political, economical and customers, suppliers, competitors, etc. Behaviour of employees is affected by these factors. Therefore, in OB, the effect of these factors on behaviour of people is also studied.

Organisational Behaviour – Goals

Organisations, for their success, give importance for the development of human factor. Researches reveal that human factor can do anything for the success or failure of an organisation. Consider our public sector undertakings (PSUs). Government of India established hundreds of business houses in manufacturing and service sectors. But after many years of operation majority of the undertakings turned sick.

It is mainly due to mismanagement. Government provided funds to operate. But the human factor at work in these organisations did not manage the units as per set methods and procedure. Because of this, economy could not grow at the expected rate. Only units identified as “Navaratnas” are functioning well and are competing with many leading companies. In these PSUS, human factor is playing a positive role and has developed organisational identity”. Red tapism” was the main reason for unsuccessful growth of many PSUs.

The experience derived out of the growth path of PSUs says that human factor is critical in organisations. Graduates rolled out from universities, will have specialised in their field of study. But, they learn very little during academic pursuits on interpersonal and intrapersonal skills which are very essential for their success in any walk of life and for the organisations they work. Practical aspects of human behaviour at work are not taught.

Only the behavioural aspects observed and retained in formative stages of the individual plays a key role in workplaces in which the person works in future. Therefore, importance is given for behaviour modeling in workplaces. Human Resources Development (HRD) in organisations have occupied the prime place compared to finance and other functional departments.

In this backdrop, what should be the goals of “Organisational Behaviour”? The main goal is to coordinate human and non-human factors for the success of the organisation. As human factors operates and controls non-human factor, further objective is to tune and fine-tune the human behaviour to suit the requirements of the organisation.

Hence, the following activities may be considered as the goals of OB:

i. Changing the traditional slow organisational practices to modern technology based fast workplaces.

ii. Empowering employees through training and development to improve their productivity and quality of work.

iii. The existing practices (traditional) cannot make workers to be dynamic and adopt new practices. The goal of OB is to make employees to behave rationally through behaviour modeling and be dynamic and visionaries. They should be prompted to analyse the changes taking place in the organisation and draw logical inferences through reasoning.

iv. Traditional managers are “command and control” type of people. The goal of OB is to convert these type of people. The goal of OB is to convert these managers into stable leaders who work as team members along with their subordinates. Although hierarchy of positions exist, it should not be exhibited.

v. Many decision-makers, many a time, work on their instructions. But instructions do not work always. Therefore, the goal of OB is to make these people to take decisions after studying the problems in a systematic way.

vi. As technology is ruling the business world today, it has made 24 x 7 global business environment more sophisticated. Hence, one of the OB goals is to design and develop fast work practices adopting technology to increase speed and efficiency of work. This leads to increased productivity of both the work force and the organisation. The digital divide (separation of tech-savvy and non tech- savvy people) has to be minimized or eradicated by investing on human capital.

vii. Today’s workforce comprises of more knowledge workers. Hence the organisations have to work on emotional aspects of workers which develops the creativity, innovation and enterprising spirit of each individual workers leading to better behaviour.

viii. The most important goal of OB is to induce workers to be ethical in their operations and in discharging assigned tasks.

Thus, the overall objective of OB is to improve the skills of the people working in an organisations in terms of changing individual behaviour and group behaviour so that organisation becomes successful. The main goal is to make the organisation a learning organisation.

Organisational Behaviour – Processes to Modify and Integrate Organisational Behaviour

There are four major processes which can modify and integrate organisational behaviour, i.e., attitudes and behaviours of individuals and groups in an organisation:

(1) Managerial Style.

(2) Positive Behaviour Reinforcement.

(3) Job Enrich­ment, and

(4) Organisational Development.

Process # 1. Managerial Style:

Under Theory X and Theory Y as pointed out by McGregor, we have almost diametrically oppo­site assumptions about organisational behaviour. Managerial leadership style indicates the overall pattern of manager’s be­haviour while trying to fulfil managerial responsibilities. It also suggests the manner in which the superior-subordinate relation­ship is carried out. Leadership style influences productivity and employee satisfaction.

It may give special emphasis either on production or on employee satisfaction. Occasionally, manage­rial style may give equal emphasis to both and try to achieve high production as well as high employee satisfaction. Produc­tion-centred approach increases productivity at the expense of the human organisation.

The employee-centred managerial style depends on the social motivation to- achieve organisational goals and in the long run can ensure continued high rate of productivity. At present democratic and participative leader­ship is employed to achieve higher productivity without sacri­ficing human values in industry.

Process # 2. Positive Behaviour Reinforcement:

Management re­wards constructive behaviour and tries to eliminate undesirable employee behaviour and activities. Rewards reinforce positive behaviour because people tend to repeat pleasurable (reward­ing) actions. Performance feedback itself can be a reward be­cause it satisfies a human need of knowing how one is doing and where one stands.

Employee behaviour which leads to failure will be corrected. Successful behaviours are rewarded. Thus organisational behaviour can be modified by a planned programme of positive behaviour reinforcement through re­ward systems.

Process # 3. Job Enrichment:

A better job can often create better attitudes and greater willingness to cooperate and perform du­ties with enthusiasm and zeal. A better job can also offer greater employee satisfaction and provide ample opportunity for growth.

A job must be challenging and meaningful, job en­largement and enrichment can create most favourable employee behaviour and action which can also integrate the objectives of individuals and the organisation. Job enrichment provides duties which are meaningful, enjoyable and satisfying.

Acute division of labour, extensive specialisation and routinisation of jobs and tasks created dehumanised and mechanical organi­sation structure. Modern trend is in favour of job enlargement, job rotation and job enrichment to motivate employee behaviour in order to attain the organisational goals without sacrificing employee satisfaction and welfare.

Process # 4. Organisational Development:

A fourth method for mo­difying and integrating organisational behaviour is organisa­tional development. In its complete sense organisational development (OD) allows for the humanisation of the formal organisation by minimising the obstacles to organisa­tional effectiveness, setting members work on the problems identified, and giving feedback on the development of skills found necessary or important- all under the guidance of a trained behavioural scientist.

The emphasis is on interperso­nal skills, conflict resolution and the creating of mutual trust and openness. OD develops a cooperative interpersonal climate and the development of a community of purpose or common interest.

Open communication and concentration on overall goals are the two main OD purposes. OD provides the ways and means by which members in an organisation may work together with trust and openness and’ without unhealthy competition and conflict.

Organisational Behaviour – Significance: Attaining Organizational Effectiveness, Balancing Increase in Capitalism, Surviving Intense Competition and a Few Others

OB is the study and application of knowledge about predicting, understanding, and controlling the behavior in the organizational setting. It is of great importance for any organization in today’s scenario. The vast changes in the organizational set up and the world economy, as well as the growing concern about the stakeholders have increased the scope of the study of OB.

Therefore, the vital role played by OB can be discussed as follows:

1. Attaining Organizational Effectiveness:

Refers to a process that acts as an indicator or a scorecard for an organization’s performance. The analysis of performance can be done from individual and organizational perspectives.

2. Sustaining Changes in Business Environment:

Refers to the need of an organization to accept the changes occurring in the business environment. The dynamic external environment increases the importance of OB as a field of study, because it affects the internal environment as well, thus, forcing an organization to accept changes as survival strategy.

3. Balancing Increase in Capitalism:

Refers to the economic system that is represented by private ownership of capital and means of production. The features of capitalism make the study of OB very important because of increasing monopolists and capital-intensive industries.

4. Surviving Intense Competition:

Requires great efforts on part of an organization. You should note that an organization can face fierce competition by adopting various policies, such as capturing market share and developing human resource. The study of OB helps the organization to develop the human resource by molding their behavior for the benefits of organization.

5. Managing Global Influences:

Refers to controlling the effects of privatization, liberalization, and globalization on organizations. Global influences make the workforce of an organization more diverse in nature, thus makes the study of OB more important.

6. Fulfilling Human Needs:

Refers to managing and enhancing the skills of employees.

For developing these skills, a manager must be capable of:

i. Understanding human aspirations

ii. Building coordination among employees

iii. Imparting timely training to employees

iv. Motivating them so that they willingly utilize their abilities towards attainment of organizational goals

v. Communicating the goals successfully to employees so that they would know what is expected of them

vi. Introducing new and innovative ideas

Employees also expect the organization to understand their needs and provide them with right impetus to grow both financially and professionally. Thus, knowledge of OB helps the management to understand and fulfill these needs of employees.

7. Managing the Complexity in the Structure of Organizations:

Refers to controlling the complexity that may arise in the organizational structure due to dynamic business environment. As an organization grows, its structure becomes complex because its command chain expands, the scope of authority becomes multifaceted, and the responsibilities of employees keep changing.

8. Managing the Presence of Labor Unions:

Refers to monitoring and controlling the activities of labor unions. These unions persuade the management of an organization to give importance to human relations. Therefore, organizations lay emphasis on the study of OB to take care of human aspects.

Organisational Behaviour – Importance of Organisational Behaviour

OB can touch every spectrum of business competitiveness by explaining, predicting, and influencing the behaviour of people.

Let us look at some of them:

1. Creates Sustainable Competitive Advantage:

Everyone knows that the voice of Lata Mangeshkar is very melodious. It is valuable, rare and difficult to imitate. Hence, she has been having little or no competition for long and no one could substitute her. This analogy explains sustainable competitive advantage. Resource-based view of firms asserts that competitive advantage is created through valuable, rare, inimitable, and non-substitutable resources.

OB converts people in an organisation into valuable, rare, inimitable, and non-substitutable through various OB practices aligned to achieve goals. For example, OB can create a culture of innovation, performance, knowledge sharing, and trust through a combination of individual development, team design, and leadership development.

Google would meet this bill and this is the reason why it is difficult to beat them. Though OB deals with developing people in the organisation, its reverberations can be felt by the customers too. If the employees are not happy or do not behave appropriately with the customers, the result can be disastrous.

2. Individual Component:

Rajiv is not able to get results in sales and finds the job very stressful. His boss suspects his introvert nature. If we had a psychometric test before selecting him for the job, this situation could have been avoided. If we erred in selection, we can still confirm his personality trait and shift him to another job profile where he can succeed. A third alternative is to train him to change his behaviour.

This illustrates that OB is important to accomplish the following:

i. Identify the underlying reasons for poor or non-performance and enable change.

ii. Help a person to modify his/her behaviour to achieve full potential by identifying what motivates a person, how the person can learn and be more creative, and manage stress. In other words, OB can facilitate tak­ing a whole gamut of actions required for the person to contribute to competitiveness.

3. Group/Team Component:

A company had created two teams simultaneously to develop a new product. The Vice-President, product development, had done so to create internal competition and speed up the product development to beat the competition.

After three months, Team A’ had made no progress, but Team ‘B’ was on the verge of testing the first pro­totype. Both teams were full of bright people. Hence, the Vice-President won­dered what had happened to Team A’. After some deliberation, one Ms Shami Jain was transferred from Team ‘B’ to Team A’.

She realised that Team A’ had far better ideas, but was unable to take a decision. She championed one of the ideas, and within a month, Team A’ came out with a prototype, which was later adopted by the company. What did the Vice-President do? She used her knowledge of Team Wheel from OB and transferred a person who could get Team A’ to decide. This illustrates the importance of OB in designing effec­tive teams.

4. Organisational Component:

OB helps in designing, structuring, and changing culture to create a learning and innovative organisation. It sug­gests ways to implant an organisational sub-culture within the overall cul­ture.

For instance, although employees and organisations in Kerala respond to frequent ‘hartals’ (enforced stoppage of work as a method of protest adopted by political parties in India), employees of various organisations working in the Technopark in Trivandrum, the capital of Kerala, where the IT industries are located, do not participate in such hartals. It shows the existence of a sub-culture in companies located in the Technopark.

5. Leadership Component:

Kasper Rorsted is known for transforming Henkel. Armed with the knowledge of OB, he reinvented the culture of Henkel into a ‘winning culture’. His leadership style, knowledge of the leadership style of his team, and understanding of the methods to change the behaviour of people helped him create the winning culture. Leading organisations through crisis and creating transformation are strong contributions of OB.

6. External Forces Component:

Southwest Airline, the pioneer of the low cost airlines in the US, is widely known for its innovative and fun loving working environment. In fact, having a fun loving nature was the first requirement to get a job in the company. The management actually sponsored its union and encouraged them negotiate even wages. Ludicrous! Don’t you think so?

But guess what the result was? The company recorded quarter after quarter profit, even though every other low cost airline was making a loss. Here, the management knew the external political forces that would intervene to cre­ate a union and pre-empted it with its own model of union.

Similarly, global economic slowdown could lead to benching (being on job roll with pay, but no job to do) in IT companies, which leads to loss of experience and develop­ing negative attitudes towards the organisation. OB could use tools of learn­ing, job rotation, intrinsic motivators, corporate social responsibility actions and innumerable other methods to counter the impact of a slowdown.

Organisational Behaviour – Challenges Faced by Organizational Behavior: Globalization, Management of Workforce Diversity, Incorporation of Innovation and a Few Others

The significance of studying OB is increasing day-by-day due to dynamic business environment. Now-a-days, numerous changes are taking place in the global, industrial, and organizational setups. These changes have brought numerous challenges for OB.

Following points discuss these issues briefly:

1. Globalization:

Implies that no organization can work effectively in isolation and has to comply with the global factors that have an impact on it. Globalization poses numerous challenges in front of an organization. At the individual level, an employee may require to work on foreign assignments or collaborate with people from different cultures.

At the group level, problems may arise in decision-making procedures and while working in teams that include people of different cultural backgrounds. At the organizational level, problems may arise in case of mergers or acquisitions due to vast cultural differences.

2. Management of Workforce Diversity:

Refers to the need of numerous conflict resolution techniques and problem- solving approaches to deal with diverse workforce. It is difficult to manage the employees belonging to different cultural backgrounds, due to differences in their values, beliefs, attitudes, and behaviors. A proper management of workforce diversity can have numerous positive results, such as the availability of fresh ideas and talents.

3. Improvement in Quality and Productivity:

Refers to matching the desired levels of quality and productivity with the ever-changing demands. Management guru Tom Peter says, “Almost all quality improvement comes via simplification of design, manufacturing, layout, processes, and procedures.” Now-a-days, a number of programs, such as process reengineering and quality management are being implemented to bring improvement in productivity.

4. Improvement in People Skills:

Implies that it is the necessity of time to improve and upgrade the skills of employees from time to time. The change in business, political, and technological environment makes it important to train and develop the employees according to new trends. The technical and interpersonal skills of employees need constant improvement.

5. Incorporation of Innovation:

Implies that it is necessary to incorporate change in rules, regulations, processes and procedures of an organization to suit the current standards. It is easy to formulate the strategies for change in an organization, but difficult to implement it due to the employee resistance. If the resistance of employees is overcome then the positive changes can be brought in the organization to enhance the productivity level.

6. Incorporation of Work-Life Balance:

Indicates that the demanding work schedules and challenging jobs tend to upset the personal and social life of employees at times. Work-life balance can be achieved by implementing the concepts, such as work from home and flexible work-timings.

Organisational Behaviour – Limitations

OB is a subject or a behavioural discussion in organisations . The behavioural aspects are mainly concerned with, cognitive, behaviouristic and social cognitive frameworks. In the process of making people to adapt themselves to organisational situations and work as per the set rules and procedure, many problems crop up. Particularly cognitive aspects (mental processes is terms of perception attitude, emotion, values, etc.) put an individual in a dilemma while taking decision and performing the right task. Many a time, sound decisions are not taken resulting in low productivity.

Cognitive approach provides only conceptual aspects to study the human behaviour at work, Behaviouristic aspects direct the individual or the group to work according to observed behaviours. The experiments conducted by Pavlov, Watson and others provide a base to work on observations rather than cognitive approach which is based on elusive mental analysis. The experiments of Ivan Pavlov and Jhon. B. Watson provided the observed behaviour model, which is very prominent in behavioural analysis, viz., “Stimulus-Response” model, popularly known as S-R model.

Based on this basic model, B. F. Skinner further analysed the S-R model through his “operant conditioning” experiments and said that “consequence” of a response will exhibit an improved behaviour over S-R approach and the model of Skinner is popularly called “R-S Model”. According to this model, behaviour is influenced by its contingent environmental consequences.

In spite of these two approaches, viz., cognitive and behavioural approaches, which are mechanistic and deterministic respectively, the recent thinkers and researchers such as Albert Bandura said these two approaches independently provide one dimension or the other of behaviour. They opined that an integrated approach has to be taken to understand behaviour. They projected “social learning” concept as a vital aspect of behaviour. According to this approach, a complex behaviour is acquired by directly observing and imitating others in the surrounding environment.

This theory popularised as “social cognitive theory” by Bandura and other modern researchers.

Social cognitive theory considers basic human capabilities such as “symoblising’ (converting visual experiences of employees into cognitive models which act as guide for future actions), “Forethought” (employees plan their actions, anticipate the consequence and decide the level of performance), “observational” (employees learn by observing co-workers, their higher-ups, good performances of counterparts in other identical organisations and from their own previous experiences),”Self-regulatory” (adapting self-control measures) and “Self-reflective” (making a self-assessment of their actions and perceptually determine how strongly they believe that they can successfully accomplish the task in future in a given situation).

It is also called “Cognitive Social Learning Theory”. Still many researches are going on, on behavioural aspects. The limitation of this subject is that in real time operations, no one model cannot be confidently applied to behavioural aspects of employees. All the theories can guide the people to take decisions on behavioural aspects. Behavioural aspect mainly being psychological and social phenomena, only contingency approach has to be taken in a given situation.

Whether it is group or individual behaviour, they are mainly directed by mental process of the person and social system in which one works, in a given situation. Thus, the limitation of OB is that it cannot be standardised and is subjected to change as situation changes. It also changes as per the perceptions of the group or individual in a given situation.

Organisational Behaviour – Future

Organisational behaviour exists as long as human factor works in organisations. Behavioural pattern may change in accordance with the needs of the organisations. If we observe the growth path of management thought since the days of Henry Fayol and F.W. Taylor to this day, we understand that human force at work has behaved according to the needs of the day and for the growth and success of the organisations.

Behavioural aspect is influenced by human psychology and the environment in which human factor lives and works. OB may be relatively a new field of study. But lived with organisations ever since the organisations started functioning for serving business objectives. Behaviour moves with any living object and more so with human factor. Only recently behavioural aspects in organisations are identified considering cognitive aspects and social systems in which organisations function. Today, OB has systems in which organisations function, and it has been considered as a strong factor for organisational success.

In the process of giving prime place for OB, “Human Resources Management” (HRM) is playing key role in organisational development (OD). Technology is replacing human force at work in organisations. Information technology and other highly advanced technology may be adopted in organisations. Rabots developed with faultless technology, may function lessening the burden for human factor at work. But brain behind this technology is human brain and only human factor should operate this technology. Thus, in future, human factor at work may be minimised, but behavioural aspect continues.

Behavioural aspects are unpredictable. Availing the assistance of various disciplines (such as psychology, sociology, anthropology, etc.), behavioural aspects are understood and accordingly methods and procedures are developed and adapted. The behavioural pattern changes. In non­technical organisations, human factor works more. As more and more technology is introduced, behavioural aspects of human factor also changes. But OB aspects are eternal.

Related Articles:

• Organisational Behaviour Perception
• Organisational Development (OD)
• Entrepreneurial Behaviour
• Matrix Organisational Structure

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Organisational Behaviour (MGMT20001)

Undergraduate level 2 Points: 12.5 Online and Dual-Delivery (Parkville)

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Contact information

Summer term.

Dr Joeri Mol [email protected]

Prof Bill Harley [email protected]

Dr Vicky Roberts [email protected]

This subject will provide an introduction to basic individual and group processes, as they affect people in organisations. Major theories and models in key areas of organisational behaviour will be examined; including group dynamics, motivation, stress, communication, conflict, power, strategy, structure and change management. Tutorials will emphasise the application of theories, through the use of exercises and case studies.

Intended learning outcomes

• Describe the basic theories & models within organisational behaviour.
• Apply major theories and models from the field of organisational behaviour to analyse organisational problems and generate realistic solutions & recommendations, as presented in case studies.
• Summarise and evaluate recent academic research and findings on a specified topic in organisational behaviour.
• Describe practical application of theories and concepts in team work assignment.
• Identify and critique management approaches in the field and collaboratively develop alternative models of practice.
• Solve problems of management practice.
• Analyse team dynamics.

Generic skills

In this subject you will have the opportunity to develop important generic skills:

• Problem solving skills and critical thinking skills will be fostered in the tutorial/workshop program and more directly within the team assignment where students have to apply theoretical material to a practical case study.
• Collaborative learning and team-work skills will be developed by working in a permanent, semester-long, student team for the case study. Team-work skills will also be fostered through exercises, role plays, and simulations that are incorporated into the tutorial program.
• Verbal and written communication skills will be developed via the individual and team assignments and through the experience of working in a team for the whole semester. The interactive nature of the tutorial/workshop program will also, indirectly, help to improve communication skills.

Last updated: 29 May 2024

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