Organizational

Behavior
Role of Organizational Behavior
It helps firms achieve effectiveness of their activities
e.g. people and resources

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üFeatures of OB
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 OB is the study of human behavior

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 The study is about behavior in organizations
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 Knowledge about human behavior would be useful in
improving an organization’s effectiveness
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Definition and Meaning of OB

 OB refers to the behavior of individuals and groups

within organizations and the interaction between
organizational members and their external
environment
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 OB is a field of study that investigates the impact
that individuals, groups and structure have on
behavior within organizations for the purpose of
applying such knowledge towards improving an
organization’s effectiveness
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 To sum up, OB obviously comprises individual
behavior, group behavior and of the organization
itself
Foundations of OB
ü There are differences between individuals
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ü A whole person concept e.g. hiring an individual for an organization
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ü Caused behavior e.g. tackle the issue at its root
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ü Human dignity e.g. proper respect and recognition of all kinds
employees
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ü Organizations are social systems e.g. social and psychological laws
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ü Mutuality of interest among organizational members e.g. IDL goals
and organizational interests
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ü Holistic organizational behavior e.g. an all encompassing view of
people in orgs.
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ü Need for management e.g. improving an organization’s
Importance of OB
1. OB provides a road map to our lives in an organization
2.
2. The field of OB uses scientific research to help us understand and predict
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organizational life
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3. OB helps us influence organizational events

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4. OB helps an individual understand himself/herself and others better.

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5. OB helps the manager to understand the basis of motivation

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6. OB is useful for maintaining cordial industrial relations

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7. The subject of OB is also useful in the field of marketing

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8. Career in management and ‘people skill’

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9. Motivation towards higher productivity and better results

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Shortcomings
 Failure on the domestic front/personal lives
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 OB has not contributed to improved interpersonal relations in
organizational settings e.g. jealousies, back-stabbing, leg-
pulling, inequalities in reward system etc. go side by side
with nice lectures, training programs, smiles, and the like.
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 The subject of OB has almost become a fad with mangers in
most of the organizations e.g. common uniforms, open
offices and shared canteens etc.
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 OB is selfish and exploitative serves only the interest of
management e.g. motivation, efficiency, and productivity
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 The subject breeds a competitive spirit among the employees
instead of harmony with one another
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