TABLE OF CONTENTS - e-PG Pathshala

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PSYCHOLOGY PAPER No. 12: TITLE: Organizational Behavior MODULE No.1:TITLE Introduction to Organizational Behavior

Subject PSYCHOLOGY

Paper No and Title Paper 12 Organisational Behavior

Module No and Title Module 1 Introduction to organisational behavior

Module Tag PSY_P12_M1

TABLE OF CONTENTS

1. Learning Outcomes 2. Introduction 3. Definition 4. Goals and Organizational Behavior 5. Forces

5.1 People 5.2 Structure 5.3 Technology 5.4 Environment

6 Summary

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1. Learning Outcomes

After studying this module, you shall be able to

• Understand the definition of Organizational Behavior • Know about the levels of analysis • Identify the goals of organizational Behavior • Examine the forces that affect the organizations

2. Introduction

Organizations and Organizational Behavior

An organization is a structured social system consisting of groups and individuals working together to meet some agreed-upon objectives. They consist of people who as individuals or in groups strive to attain common goals. The field of organizational behavior deals with human behavior in organizations. Its approach is multi disciplinary that tries to understand human behavior in organizational settings by systematically studying individual-group and organizational processes.

3. Definition

“Effective organizational behavior is the bedrock on which effective organizational action rests. Long term competitive advantage comes from the rich portfolio of individual and team based competencies of an organisation’s employees, managers and leaders.”

- Hellriegal and Slocum

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Figure1: What organizational behavior is all about

Organization behavior been is an interdisciplinary field dedicated to the systematic study and careful application of knowledge about how people as individuals and as groups act within organizations. By definition organizational behavior is both research and application oriented. As a discipline, a large number of research studies and conceptual developments are constantly adding to its knowledge base and as an applied science that information about effective practices in one organization is being extended to many others. Three basic levels of analysis in organizational behavior are individual, group and organizational. It is useful to study behavior of individuals within an organization. Organizational behavior is also helpful for the understanding of the complexities involved in interpersonal relations, when two people (co-workers, boss subordinate etc.) interact. At the next level, organizational behavior is useful for examining the dynamics of relationships within small groups, both formal teams and informal groups. Further, when there is a coordinated effort between two or more groups, managers become interested in the intergroup relations that emerge. Lastly, organizations can also be seen as whole systems that have inter organizational relationships. “Organisational Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation.”(Robbins: 19989)

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Fig 2: Three levels of analysis in Organizational Behavior

4. Goals and Organizational Behavior

Like all other sciences, organizational behavior has certain specific objectives. The first of which is to describe systematically how people behave under a variety of conditions. Realization of this objective allows managers to communicate about human behavior at work using a common language.

The second goal is to understand the “why” of people’s behavior. The field of organizational behavior needs to be justified and hence it should not only talk about employee behavior but the reasons behind it. After understanding the subtle nuances and explanations behind employee behavior, we move on to the next goal of organizational behavior, which is predicting future behavior of employees. The ability to forecast and employee’s level of efficiency, productivity, dedication and regularity can be quite helpful from the viewpoint of recruitments, assessments, job specifications, enhancements, and promotions. On the other hand, ineffective, tardy and disruptive employee behavior, if predicted accurately can be countered by taking preventive action.

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The last goal of organizational behavior is to influence and develop human activity at work based on interpretation and application of organizational research. It is expected of managers to develop viable methods of performance improvement, conducive behavior at work, optimum skill development, efficiency and team work through understanding and application of concepts like motivation, conflict resolution, communication, leadership etc.

Organizational behavior comes to the rescue of managers to develop the ability to bring about betterment in the workplace through effective employee behavior.

Organizational behavior is applicable in all types of professions and organizations, whether government, private or service. Whatever the organization is, there is an imperative need to understand, predict and develop work-conducive human behavior.

Figure 3 : Research in Organizational Behavior

5. Forces

A multiple array of forces affect the organizations. These can be classified into four areas:

• people

• structure

• technology

• the environment

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All the above stated four areas work in relation with each other and ultimately influence organizational behavior. For any organization to achieve its goals, it has to have people to fulfill its mission statements. However, without a formal structure, where hierarchies, duties, roles and way of functioning are not specified, the organization would become dysfunctional. Without the use of technology, the people in the organization would not be able to function. Finally all the three forces namely people, structure and technology are influenced and get influenced by the environment in which the organization operates.

5.1 People

Figure 4

The internal social system of the organization constitutes of people. This internal social system consists of individuals and groups, which further may be big, small, formal, informal, official or unofficial. Groups are dynamic. They are formed, changed and disintegrate. The important point is that people are thinking, feeling and reacting beings who work to achieve their aims. Organization comes into existence to serve people, rather than the other way around. The present organizations are very different from organizations of yesterday. Organizations nowadays encourage and work towards getting culturally diverse workforce. Diverse work force presents both opportunities and challenges to the organization. The implications of diversity lie in the fact that people come from different educational and cultural backgrounds. Apart from individual differences in their talents and perspectives, they have unique value-systems, interests and lifestyles. Hence, the organizations need to use these unique characteristics to their benefit and also be prepared to adapt to them. There is a major shift in the thinking and behaving patterns of the workforce. In order to survive, the organizations need to change their management practices.

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There are latest developments which emphasize leadership abilities, motivational techniques, employee counseling and empowerment.

5.2 Structure

Figure 5

Structure implies the formal relationship and use of people in organizations. People in different jobs are required to accomplish the multifarious activities of an organization. However the people in different roles need to be connected in some structured way so that there is coordination in the organization. These interconnections present the organization with challenges of cooperation, negotiation and decision making. Nowadays we have more flatter organizations with relatively fewer hierarchical positions. This ensures relatively less hurdles in implementation of decisions and also cuts across costs. The structures of organizations which have mergers, acquisition and new ventures have completely different and complex structures. The internet and modern telecommunications technology have given rise to “virtual teams and organizations”. Here locations, infrastructural facilities and time zones do not pose any constraint on the organization’s competence.

5.3 Technology

4.3

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Figure 6

The world is facing a dramatic shift from a manufacturing to a service industry. Technology empowers people and affects the tasks and the ways in which they are performed. It was a bearing on working relationships as well as on quality of work. The internet revolution has had major impact on organizations. Internet which is the global network of computers, software, cables, servers and routers is here to stay as a business tool. It can radically and impressively alter any industry or activity that depends heavily on the flow of information. Increased use of automated control systems, robots, machinery and equipment, computer hardware and software are the call of the day. However, these technological advancements pose a challenge to a organizational behavior practioners in terms of maintaining a balance between technical and social systems.

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5.4 Environment

Figure 7

Each organization has an internal and an external environment. Every organization is part of a larger system; it does not exist in isolation. The larger system consists of many other elements such as government, other organizations and the family. Rapid globalization apart from other factors such as expectations of improved quality of goods and services at acceptable prices, corporate social responsibility, unionization etc. pose a challenge to organizations. No single organization can escape being influenced by the external environment.

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OB is a relatively young discipline that deals with human behavior in organizations. The central characteristics of which are that is a scientific field studying individuals, groups, and organizational processes. It is interdisciplinary in nature and it is used as the basis of for enhancing organizational effectiveness and individual well-being. OB is a very important area of study as its concepts helps us to predict and understand organizational events, adopt more accurate theories of reality and influence organizational events. It cuts across all areas of organizational functioning. After all it’s a proven fact that employees need to be motivated and satisfied, communication has to be fair, teams need to function effectively and jobs need to be designed effectively for the organization to have a smooth sailing. Clearly defined areas, goals and forces of organizational behavior make it easy to understand the complex and dynamic nature of organizations.

Structure

Jobs Roles Relations

People

Individuals Groups

Environment

Family Society Govt Competitors

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Technology

Internet Machinery Computer hardware Software

Organizational Behavior

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6. Summary

• Organizational Behavior is the systematic study and careful application of knowledge about how people as individuals and groups act in organizations.

• Its primary goals are to make the employers (managers) more effective at describing, understanding, predicting and controlling human behavior.

• The key elements to consider are people, structure, technology and the external environment.

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