Individual &

Organisational Behaviour
PGPMS
Introduction
What is Organisational Behaviour (OB)?
The study of individual behaviour in the organisational setting

But, before we start, let us understand the following terms

Organisation:
A group of persons who come together for a common goal; this
term encompasses both formal and informal organisations;
organisations are where managers perform the act of
management
Management:
the art of getting things done through other people
The use of social and technical processes that utilise resources
and facilitate change in order to achieve organisational resources
Managers:
The people who manage the organisation
Factors influencing human behaviour
Environmental Economic employment levels, wage rates, economic
factors outlook, technological change
Social Norms work ethic, achievement need, values
Political ideology, effect upon economy
Personal Age performance, turnover, absenteeism, productivity
factors Sex / Marital Status differences in abilities, responsibility
Education expectations
Abilities intellectual, physical, creative
Organisation Facilities physical and operational
systems Structure & Design - where do I fit in
Leadership how am I being led?
Reward systems
Psychological Personality
Perception
Attitudes & Values
Learning
Functions of a Manager
Fayol
5 functions-related : Planning, Organising, Commanding,
Coordinating, and Controlling

Henry Mintzberg (MIT Graduate student)

Managers perform 10 inter-related jobs or behaviours, grouped under
three heads:

Interpersonal Informational Decisional

Figurehead Nerve Centre Entrepreneur

Leader Disseminator Disturbance Handler
Liaison Spokesperson Resource Allocator
Negotiator
Essential skills of a Manager
Schermerhorn

Interpersonal Relationships
Leadership
Conflict Resolution
Information Processing
Decision Making
Resource Allocation
Entrepreneurism
Introspection
Structure
Individual

Individual
organisation
Interface

Environment Organisation
Fundamental Assumptions
Individuals are different
Since people are different on grounds of intelligence, personality, physique,
and other traits, these differences must be recognised when dealing with
them
A whole person
When you hire a person, you hire not just his skills and capabilities, but also
his likes and dislikes, prides and prejudices
All behaviour is caused
One must understand and manage the causes behind an individuals
behaviour
An individual has dignity
There is a need to therefore treat this resource differently from other
resources
Organisations are social systems
Everything in organisations is related to everything else
Mutuality of interest
Organisations need people and people need organisations
Scope of OB
Intra-Personal Behaviour
Personality, Attitude, Perception, Learning, Opinion,
Motivation, Job Satisfaction

Inter-Personal Behaviour
Group Dynamics, Inter-group conflict, Leadership,
Communication, Power, Politics, Competition, Interests

Organisations
Formation, Structures, Effectiveness, Formal and informal
organisations
Contributing Disciplines
Psychology
The science of Human Behaviour

Sociology
The science of Group Behaviour

Social Psychology
Borrows from both psychology and sociology
Focuses on the influence of people on each other

Anthropology
The study of man and cultures

Political Science
The behaviour of individuals and groups within a political environment
Approaches to OB
Human Resources Approach
Also called the Supportive Approach
Focus of the manager changes from control to support

Contingency Approach
Also called the Situational Approach
Based on the premise that methods or behaviours that work effectively in one situation
fail in another
More interdisciplinary, more research-oriented approach

Productivity Approach
Since the ultimate intention of all organisational activities is improved productivity, this
approach is important
Productivity of human efforts and behaviour needs to be identified

Systems Approach
This approach views the organisation as a united, purposeful system consisting of
inter-related parts
Considers the effects of one sub-system upon another
 OB Model
Personality
Perception Individual
Learning Behaviour
Attitudes & Values
Motivation

Group Dynamics
Leadership Group Organisational
Power & Politics Behaviour Effectiveness
Communication
Conflict

Culture
HR Policies & Practices
Work Stress Organisation
Organisational change &
development
Emerging challenges for OB
Workforce Diversity Cosmopolitanism

Changing Demographics Dual career couples

of workforce Young employees

Changing Employee Empowerment & Democracy

ExpectationsWork-life balance

Globalisation Premium on competencies

Management of careers

Corporate Reorganisations Mergers & Acquisitions

Innovation and change

Ethics & Corporate Corporate Frauds

Governance Organisational integrity
Historical Evolution of OB
George Santayana
We must welcome the future, remembering that soon
it will be the past; and we must respect the past,
remembering that it was once all that was humanly
possible

Oliver Wendell Holmes

When I want to understand what is happening today
or try to decide what will happen tomorrow, I will look
back
The Value of History
Mahabharata; Iliad
Learnings from the fables regarding the relationship between society and the
individual

Kautilyas Arthashastra
There existed a sound base for management of human resources since 4 th
century BC
Government took an active interest in the operation of public and private
sector enterprises
Provided systematic procedures for regulating employer-employee
relationships

Hammurabis Babylonian Code 1800 BC

minimum wage and incentive wage plan were defined

However, most study of human behaviour in organisations started from

beginning of 19th century
Evolution
Industrial Revolution
Materialism, discipline, boredom, impersonality, work interdependence

Robert Owen 1800

first to emphasise the human needs of employees
refused to employ children
Taught workers temperance, cleanliness

Andrew Ure 1835

emphasised the human factor as an important factor of production
Provided hot tea, medical treatment, sickness payments

JN Tata - 1886
Special interest in the welfare of his workers
Evolution .. 3
Human Relations Movement 1920s-40s
Heavy emphasis on employee cooperation and morale

Great Depression
Unemployment, lower purchasing power, lower standards of living

Growth of labour movements

Focus of people management from paternalistic to employee relations

Hawthorne studies 1924 - 32

Gave academic status to the study of organisational behaviour
Elton Mayo Prof of Indl Research Harvard School of Bus Admin
Concluded that workers behaviours and sentiments were closely related;
group influences affected individual behaviour; group standards affected
individual output; money was a lesser factor in determining output as
compared to group standards, sentiments and security
Evolution .. 4
Human Relations movement led to fad-ism and
shallowness

Over-emphasis on the big smile; being nice to people;

keep them happy

while at the same time, attempting to manipulate

people

More academically oriented, more research; organisational

behaviour term began to be used from 1950s and early
1960s