What is meant by Organizational Behavior?
Organizational behavior (OB) is a broad field of business study that examines how people behave in an organization and how managers can influence them to act in specific ways that are beneficial to the organization. The study of organizational behavior is influenced by many disciplines, including management theory, psychology, and efficiency analysis. It is difficult to pinpoint exactly what organizational behavior is or how it works, but key components are leadership, culture, structure, and communication.
It is very important to study organizational behavior because it provides an understanding of why people behave as they do in organizations. In any organization, the importance of organizational behavior has tremendous necessities. Organizational Behavior helps us to study human being and their complex nature in organizations by identifying the causes and effects of that behavior. Having the concept and knowledge of Organizational Psychology helps to scientifically study human behavior in the organizational settings. The Organizational structure also affects the organizational behavior because it defines how tasks are divided, grouped, and coordinated in organizations.
There are various reasons for studying organizational behavior because the relevance of organizational behavior in today’s business environment can’t be separated. Along with the various benefits of organizational behavior, there exist limitations of organizational behavior too. But there is a huge scope of organizational behavior in the long run in the future. The main objective of Organizational Behavior is to understand the human interactions in an organization, find what is driving it, and influence it for getting better results in attaining business goals.
Organizational behavior (OB) examines the effect of individuals, groups, and structures on an organization’s behavior. The findings of this study can greatly benefit an organization. Organizational behavior is the study of how organization performance is affected by the behavior of its members. Organizational behavior focuses on employment issues, such as employment, work, leaves, turnover, productivity, and human performance. Motivation, leadership behavior, power dynamics, interpersonal communication, group dynamics, learning attitudes, perceptions, conflicts, work design, and work stress are topics covered by Organizational Behavior.
This course will introduce you to a variety of organizational behavior theories and concepts. It is common for people to share “facts” or suggestions that are based on human behavior or organizational needs as facts about both the ways people behave and how they think. One example is “two heads are better than one”. However, these statements are not always true. Organizational Behavior’s off-line objective is therefore to replace traditional ideas. Studies of organizational behavior can benefit managers since they focus on methods to increase productivity, decrease absenteeism, and boost job satisfaction. The purpose of Organization Behavior is to enable managers to lead ethically. Through organizational behavior, better behavior predictions can be made.
Objectives of Organizational Behavior (OB)
Why is Organizational Behavior(OB) important?
Some of the importance of Organizational Behavior (OB) in any type of organizations is as follows:
1. Organizational Behavior Management
The study of OB helps to understand the organization and people in a better way. OB is important it helps to develop a friendly relationship between organization and employees creating a proper working environment in an organization. This helps in employee commitment as well as maintains Organizational Citizenship Behavior. Studying OB provides a better understanding of the organization structure and organization culture as well which further supports organizational behavior management. Similarly, studying Organizational Behavior topics helps to find out the factor causing the behavior, and helps to apply different strategies to control the critical behavior which harms the organization.
2. OB helps in motivating employees
The importance of organizational behavior (OB) cannot be neglected because studying Organizational Behavior helps managers to motivate the employees bringing good organizational performance automatically leading to job satisfaction. This helps to achieve the organizational goals properly as we cannot neglect the importance of employee behavior in an organization. Organizational behavior: improving performance and commitment in the workplace. One of the example of Organizational Citizenship Behavior is Civic Virtue which creates higher job satisfaction and yields better job performance from employees as they feel they are the part of the organization as the same way they are the part of the country.
3. Industrial or Labour relations can be improved with the help of OB
Studying Organizational Behavior(OB) helps to improve industrial/labor relations. Organizational Behavior Management helps in understanding the root cause of the problem, predict its future course of action and control its negative consequences. As managers are aware of the positive and negative consequences of the behavior, it enables managers to maintain friendly relations with their employees which creates peace and harmony in the organization.
4. Organizational Behavior helps in predicting and controlling Human Behavior
Studying OB helps in the study of human behavior as well as supports in controlling it. It is the one of the most important reasons for studying Organizational Behavior. Organizational behavior: improving performance and commitment in the workplace. Organizational behavior and human decision processes are to some extent related to each other. Knowledge of Organizational Behavior research is very much important for the management students who are going to have a career as a successful manager. If all the Organizational Behavior theories are studied properly then it helps to bring organizational effectiveness.
5. Human resources can effectively be utilized with the help of OB
Studying Organizational Behavior (OB) helps in the effective utilization of Human Resources. Knowledge of and nature of Organisational Behaviour helps managers to manage people’s behavior and the organization effectively. Likewise, it enables managers to inspire and motivate employees toward higher productivity and better results as the manager is able to analyze and understand the nature and behavior of his employees. After the employees are provided with their job description it becomes easy to analyze their behavior in the organization. Therefore the essentials of organizational behavior cannot be denied.
Forces affecting organisational behaviour are /
The four key elements of Organizational Behavior (OB) are as follows:
a) People : In any organization, people are the platform for interaction and behavior. Individuals and groups constitute people. Human behavior and action identifies, recognizes and develops the interactive relations towards societal attitudes and behaviors.
b) Structure : In every organization, there is a structure, which describes the overall structure for roles, rules, relations, hierarchy, and authority. In addition, it also involves the grouping of jobs, assigning jobs within divisions and units, and assigning workers tasks. Therefore, it influences behavior of employees in an organization.
c) Technology : The process of converting input into output is called technology. It provides the resources with which people work, as well as affecting their tasks. Technology allows people to do more work in a more efficient manner. Consequently, technology can also influence people’s behavior, so managing technology is an important role for any organization.
d) External Environment : Every organization operates within an external and internal environment. Within each organization are a number of resources, a structure, culture, etc. The external environment consists of economics, politics, socioculture, and technology. The various factors influence one another in complicated ways. Therefore, the environment becomes a key element in the study of organizational behavior.
Levels of Organizational Behavior
The behavior of people can be analyzed using Organizational Behavior at three levels. The three basic levels of analysis in organizational behavior are:
- Individual Level Analysis
- Group Level Analysis
- Organization System-Level Analysis
Models of Organizational Behavior
The five models of organizational behavior are as follows:
a) Autocratic model
The autocratic model is based on strength, power, and formal authority. An autocratic organization is one in which the people in control of the tasks in the organisation (management/owners) have formal authority over the employees who work for them. Employees at lower levels carry little responsibility for the work performed. Since key decisions are made at the top management level, their ideas and innovations are not generally welcomed. Read More……
b) Custodial model
A custodial model focuses on providing economic security for employees through wages and other benefits that will create employee loyalty and motivation. In some countries, many professional companies offer health benefits, corporate cars, salary packaging, and so on – these are all incentives designed to attract and retain quality employees. Organizers believe that by increasing worker skills, motivating employees, and leveraging employee expertise, they will have a competitive advantage. Read More……
c) Supportive model
Unlike the two earlier approaches, the supportive model is aimed at aspiring leaders. The custodial model doesn’t rely on control and authority (the autocratic model) or on incentives (the autocratic model), but rather on the manager-employee relationship and how employees are treated on a day-to-day basis. An autocratic approach is opposed by this approach, which holds that employees are self-motivated and can contribute value and insight to the organization beyond just their day-to-day duties. Motivating employees with a positive work environment where they can express their ideas is the aim of the model. Consequently, the employees have some type of “buy-in” to the organization and its direction.
d) Collegial model
Teamwork is the foundation of the collegial model – everyone works together as colleagues (hence the name). A corporate culture and overall environment that aligns with this model needs to be created, where everyone is actively participating – it is not about job titles and status – everyone is encouraged to work together to build a better company. Managers are responsible for fostering teamwork and creating positive, energetic workplaces. The manager can be viewed as the “coach” of the team.
As a coach, my goal is to make the team perform well overall, rather than focusing on my own performance or that of specific individuals. In businesses with big market changes and where ideas and innovation are key factors of competitive advantage, the collegial model is quite beneficial. This can be effective in marketing teams, research and development, technology/software, and really anywhere that needs to come up with new solutions.
e) System model
System models are the final form of organization models. Out of the five models presented here, this is the most contemporary form. In the system model, the organization considers the overall structure and team environment, as well as each individual’s talents, potential, and goals. The system model seeks to balance the goals of individuals with the goals of the organization.
The majority of employees seek good remuneration, job security, and a positive work environment where the organization contributes to the community and/or its customers. We believe a successful manager-employee partnership is one where everyone feels that they are part of the vision and part of the team.
Goals of Organizational Behavior
The goals of Organizational Behavior can be classified as below:
- Predict and
Steps of Organizational Behavior Modification
Behavior modification is the process that involves making specific behavior occur more or less often by systematically managing its cues and consequences. The modern behaviorist places great emphasis on operant conditioning to motivate individuals and mold their behavior. Behavior modification, or OB MOD, uses various reinforcements to influence individual behavior. OB Mod is derived and developed from the work of B.F. Skinner. Managers can use this technique to eliminate or modify undesirable behavior and replace it with behavior that is more compatible with achieving goals.
In simple terms, OB Mod is a technique for modifying the behavior of organizational members, so that they engage in desirable and undesirable behaviors and replace them with behaviors that are more favorable. Motivation and enhancing organizational effectiveness can be achieved by using it. The Steps of Organizational Behavior Modification are as below:
1) Identification of Critical Behavior
The first step in the OB Mod is to identify performance-related behaviors. The behavior should be identified as desirable or undesirable from the point of view of the organization. Following that, critical behaviors should be given due consideration, as they contribute greatly to the employees’ performance. Through discussions with the particular employee and his immediate superior, who are intimately familiar with the job behaviors, it is possible to identify critical behaviors. Attendance or absenteeism, tardiness or promptness, complaints or constructive criticism, listening to or not listening to instructions are some of the critical behaviors that affect job performance. By modifying these behaviors, it could result in better work outcomes. The critical behavior should be paid attention to since it keeps occurring repeatedly.
2) Measurement Of Behavior
The manager must now measure how often these critical behaviors are observed over time after identifying the critical behaviors of the employees. Both observation and record analysis can be used to do this. If the frequency is within the acceptable limit, it will require no action, but if it exceeds the acceptable limit, it will need immediate attention. The measurement of behavior will also help the managers in determining the success in changing the employees’ behavior.
3) Identifying and Analyzing Behavioral consequences
A functional analysis will have to be performed by the managers next. The purpose of this analysis is to find out what circumstances lead to certain types of behavior, what are the consequences of such behavior, etc. Identifying the consequences of a behavior is important since these consequences affect subsequent behavior. A functional analysis should attempt to uncover the competing contingencies affecting each behavior as well, since some contingent consequences seem to affect critical behavior only on the surface.
4) Develop and apply intervention strategy
Identifying critical behaviors and identifying the factors that cause them is the first step toward developing an effective intervention strategy. There are several strategies available at this stage. Some of these strategies include positive reinforcement, punishment, and extinction. Different strategies will be used in different situations. The frequency of the resulting behavior is measured after a strategy has been developed and implemented. After a behavior change has occurred in the right direction, a reinforcement schedule that maintains the desired behavior will be selected by the manager.
5) Evaluate performance
OB Mod’s final step is to evaluate whether the intervention strategies are working properly. Modification of behavior is intended to improve performance by changing undesirable behaviors. If undesirable behavior has been replaced with desirable behavior, evaluation will reveal whether this has been achieved. A permanent or temporary change in behavior has occurred. Additionally, the evaluation will show whether or not the performance has improved. If there is a positive change, that indicates that the interventions are successful. A minor change, however, may necessitate a different and more appropriate strategy.
Organizational Citizenship Behavior Definition
Organizational Citizenship Behavior (OCB) that has been studied since 1970s is defined as the voluntary commitment of the person within an organization or company that is not part of his or her contractual tasks. It refers to discretionary, non-required contributions by members to the organizations that employ them. It describes all the positive and constructive employee actions and behaviors that aren’t part of their formal job description. The five most common types of Organizational Citizenship Behavior defined by Dennis Organ in the year 1988 while studying on organizational citizenship behavior are altruism, courtesy, sportsmanship, conscientiousness, and civic virtue.
Altruism is defined as the desire to help or otherwise assist another individual, while not expecting a reward in compensation for that assistance. A common example outside of a business setting would be someone who drives a neighbor to work when their car has broken down, while not expecting as money or favors in compensation. In a business setting altruistic behavior is generally related to the work or project that the business group is working on.
Courtesy is defined as behavior which is polite and considerate towards other people. Courtesy outside of a workplace setting includes behavior such as asking how someone’s morning has been or asking after the welfare of a neighbor’s child. In a business context courtesy is usually exhibited through behaviors such as inquiring about personal subjects that a coworker has previously brought up, asking if a coworker is having any trouble with a certain work related project, and informing coworkers about prior commitments or any other problems that might cause them to reduce their workload or be absent from work.
Sportsmanship is defined as exhibiting no negative behavior when something does not go a planned or when something is being perceived as annoying difficult, frustrating or otherwise negative. Outside of a business context, sportsmanship is most commonly associated with sports and games poor sportsmanship, for example, might occur when a player on a soccer team swears stomps and argues when their team loses a soccer game.
Conscientiousness is defined as behavior that suggests a reasonable level of self-control and discipline, which extends beyond the minimum requirements expected in that situation. In the context of a business setting, conscientiousness is observed when an employee not only meets their employer’s requirements – such as coming into work on time and completing assignments on time–but exceeds them.
5) Civic Virtue
Civic virtue is defined as behavior which exhibits how well a person represents an organization with which they are associated, and how well that person supports their organization outside of an official capacity.
Individual Behavior as Input-Output System
Individual behavior is complex, dynamic and changed by various environmental factors, inherited and learned social factor. IB is affected by way of information collection from the environment, process it through psychology, cognitive and physiological system and finally response to situation. It may be covert or overt perspective. Covert perspective is unobservable since it is process of mental and psychological factor. Whereas, overt perspective is observable behavior physically. IB is directed to goal and helps to understand organizational behavior. IB focus on need and desires. Thus, task, resources, and skill should match every individual and subordinates. The conceptual framework for understanding IB is as follows.
Individual receives information from environmental stimuli through human senses. When individual receives information they are started to show in behavior. Individual receives internal stimuli through heredity and external stimuli through social factors.
1. Internal Stimuli
Internal stimuli exist in individual which helps to receive, understand and predict the information received from internal environment. They affect individual behavior and reaction such as;
- Personal characteristics : It involves age, gender, length of service in organization, marital status, emotional intelligence, each factor has relationship with each other which affect IB.
- Personality : It is the traits and qualities in individual like physical fitness, self- confidence, intelligence, sense of responsibility, vision, foresight, flexibility, human character etc.
- Emotion : Emotion is the feeling derived from circumstances, experience, relationship etc. it is affective state of consciousness like joy, sorrow, fear, hate etc. it is affected by psychological and behavioral change.
- Values : It is individual sense of right and wrong, good or bad, desirable or undesirable. It is element of judgment. It is stable and long lasting. Culture is the principle source of value.
- Beliefs : It is psychological foundation of perception and attitude developed through past experiences and learning. They are based on knowledge, opinion and faith and are developed through cultural and functional factor. They provide continuity to personality and provide meaning to perception.
- Attitude : It is judgment about object, people or events that may be favorable or unfavorable. It reflects how one feels about something. It is specific as it is concerned to only object, people and events. It is unstable because it changes on the basis of time and situation.
- Ability : It involves physical and mental skill to deal with complex problem and tactful situation to show human efficiency. Training and other efficiency development program can strengthen ability on task.
2. External Stimuli
Environment provides forces that senses through hearing, seeing, smelling, touching and tasting. It includes physical and socio-cultural factors. Physical factors are organizational climate, office environment working condition etc. socio-cultural factors are management system, culture etc. The handling of external environment shows the individual behavior.
It is interpretation part of individual behavior. It shows how individual receives information from external factor understand and predict them. Information is collected from environment as input and make detail study of such information and response properly. It meditates between input and output of IB. it consists of;
- Physiological Process : It is parental and heredity in nature. They are biological foundation like nervous system and sense organ. It affects individual sensing information from environment interpretation and way of responding.
- Cognitive Process : It is the act of knowing and understanding the information from external environment. It affects processing of information. It involves basic elements like perception, thinking, decision making which focus on high mental process of assessing the information.
- Psychological Process : It involves learning and motivation. Learning is permanent change in behavior as result of information and experience. Motivation is encouraging and inspiring performance toward goal achievement. They are the key determinant of IB on job.
Output is behavioral response. They are outcome of input and processing components of IB. individual information from environmental stimuli and analyze such information through psychological, cognitive and physiological process and finally it gives response in term of behavior. Individual shows behavior in covert and overt. IB is important to understand organizational behavior. Outcome can be seen in form of productivity, absenteeism, turnover, job satisfaction and organizational citizenship. Thus, manager must understand, predict and manage behavior for effective management of Organizational Behavior (OB).
OB is continuous till the functioning and existence of organization. It is necessary to evaluate IB. If expected output is achieved, guidance for better performance is given. If deficiency is found in output, it is necessary to improve future performance to gain expected output.
Determinants of Organizational Behavior
Beliefs is psychological foundation and internal feeling that something is true, even though it unproved and irrational. It refers to long term perception or attitude toward an object that individual develop through past experience and learning. They are based on knowledge, opinion and faith. Belief provides big impact on individual behavior. Beliefs are mental attitude established by some truth, moral or facts presented by parents, teachers, peer, reference group, experts etc. belief is distinct from judgment, which is conscious mental act that involves arriving conclusion about proposition.
Development of Beliefs : Belief is based on knowledge, opinion, and faith. Individual beliefs develop through two factors. They are explained below:
- Culture factor :Culture factor impacts beliefs. These factors are tradition, custom and value considered by individual in society. Such cultural value is gained by parent, peer, teacher, reference group etc. change in cultural value affect individual’s beliefs and behavior.
- Functional factor : To fulfill needs and expectation, individual involve in organization to do work. In this course they come to interaction with manager, colleagues, and junior. They can get new idea, concept, knowledge and technology. These factors develop and change individual beliefs and organization.
Significance of Beliefs
- Help to determine reaction : Belief helps to determine the action and reaction of event, object and individual. Individual understand the matter on basis of set beliefs and values. Thus, on basis of understanding they provide reaction about the subject matter.
- Facilitate for standard : Beliefs are important source of standard of behavior. Every culture involves some standard that is followed by all individuals. The consideration of cultural, custom and tradition values facilitate for maintaining standard behavior.
- Show personality : Personality is outcome of internal and external traits of individual like family member, peer, teachers, reference group, academic qualification, job experience etc. Personality also may be inherited and it affects individual behavior.
- Source of motivation : When employee believes that hard working is supportive for achieving organizational goal and individual need, they work for better performance. Thus, employees are motivated for better performance.
- Influence of action : People act or react on the basis of beliefs developed through social interaction, education and job experience. They do action in the basis of their understanding about the subject matters.
- Support on career choice : Beliefs are important means that support for career and career planning. When individual belief academic qualification is discipline to support their future career, they do hard work on concern area to get depth knowledge. It facilitates for future profession.
Attitude is judgmental statement concerning object, people and events either favorable or unfavorable. It reflects the feeling about something. Personality and attitude are genetic but it may change by influence of people whom he desires, respect or fear. Attitude is specific and less stable, specific because it is concerned with people, events and objects. Also it changes on the basis of time and situation. Attitude is gained from parents, teachers, senior, colleagues, professor, reference group etc. Other factors such as experience, education, media, knowledge, environmental factor also affect attitude. It affects individual behavior and motivation. People are willing to change the attitude as per their role model. Thus, companies endorsed popular personalities, leading player, film stars etc. It helps to develop the positive attitude towards their products among the public.
Components of Attitude
- Affective Components: It is emotional or feeling segment of attitude people, object and events. It may be positive, negative or neutral. Attitude of one person affects other. Managing the attitude of employees help to achieve the target of organization.
- Behavioral Components : Behavioral components focus on way of behavior toward something. It is beliefs, opinion, knowledge or information held by individual. It shows the intension towards people, events and objects, either favorable or unfavorable. It is short run behavior. For example; company focus on short and long run attitude of customers towards their new product, which thus helps to make final decisions.
- Cognitive Components : It is the part of attitude that control how person understand and think continuously about things. It is opinion or belief of information segment. It is related to general know how of people, object and events. It includes beliefs, models, preference and other aspect that shape out person’s interpretation of world.
In conclusion, every individual is important to build upon individual attitude. It affects maintenance of individual relationship in society.
For example; teenagers are lazy (cognitive), still we should not hate them (affective), but can’t allow them in library.
Types of Job related Attitude
Each person has different level of attitude in job. It studies the involvement of employees in different elements of job. The job related attitude is described below;
- Job Satisfaction: It is the collection feeling that individuals holds toward his job, either positive or negative. Job satisfaction is concerned with some specific dimension such as, equitable compensation, work, promotion, opportunities, supervision, peers, recognition, relation between responsibility and compensation etc. In organization, there is inter-relation between attitude and job satisfaction.
- Job Involvement: It is concerned with how employee is identifying with job, participation and self- performance. The aspect of attitude relates to degree of engagement of person in job and level of enthusiasm to do work. Employee should consider job as their livelihood. They give strong identification of job and maximize the effort to complete the job on specified time and standard. They take complete responsibility for better performance which minimizes supervision and controlling cost.
- Organizational Commitment : It is emotional attachment toward organization like loyalty. It develops willingness to make effort to achieve organizational goal, success and wellbeing. Employees identify organization and maintain membership in organization for long period of time. The sources of organizational commitment are job characteristics, positive and equitable work experience, performance, payment relationship with supervisor and co-workers and working condition.
Values represent the sense of what is right or wrong, good or bad, desirable or undesirable. They contain an element of judgment. They are stable and long lasting belief which is important to individual. They have both content and intensity attributes. The content attributes says that mode of content is important. All individual had hierarchy of value that forms their value system. Their system is identified by considering the relative importance assigned for values such as freedom, pleasure, self-respect, honesty and equality.Value in organization effects individual attitude and behavior. They take decision to stay or considering values like respect, freedom. Culture is principle source of value. Value is affected by teachers, parents, peer, reference group etc. Value is board line in all situations. Some common business value are fairness, innovation, and community involvement.
Types of Values
From the social science research on human values, values can be identified on two basic types. They are explained below;
- Terminal Value : It refers to ultimate goal of individual to be achieved through his behavior in lifetime. It signifies objectives of life of person. It is desirable state of existence of individual. It includes self- respect, family security, recognition, freedom, inner harmony, comfortable life, professional excellence etc.
- Instrumental Values : It is preferable mode of behavior to achieve terminal values. It is core value, permanent in nature, comprise personal characteristics and character traits. Such values are more important and desirable. They are desirable state of existence that individual work towards to reach there. For example; honesty, sincerity, ambition, independence, obedience, hard working, broad mind, capable, cheerful, courage, helpful, polite etc.
There are different cross-culture dimension of work related values and behavior. They are described below;
- Power Distance: It is acceptance of unequal distribution of power by society members. In low power distance culture, inequality is minimized, supervisors are accessible and power distance is down played. And high power distance cultures is opposite of it. Manager operating at high power values system feel powerful and vice- versa.
- Uncertainty Avoider : It is extent to which people are uncomfortable with uncertain and ambiguous situations. Strong uncertainty avoider stress rules and regulation, hard work, conformity and security. Weak uncertainty avoider are less concerned to rules, not a hard worker, less conformity and security and not seen good values.
- Individualism or Collectivism : Individualist culture stress independence, individual initiative and privacy focus on personal achievement. Collective culture favors interdependence and loyalty to family or society. They want to work in group with loyalty.
- Masculinity or Feminist : Masculine culture clearly differentiates gender roles, support the dominance of men, stress of economic performance. They are decisive and assertive for achievement and recognition. Feminist culture accept equal gender role, focus on gender equality and emphasis quality of life. They try to get consensus, equality, solidarity and quality of work life.
Organizational Behavior Quiz