Introduction to Organizational Behavior - BBS SECOND YEAR OB & HRM

(BBS 2ND YEAR OB & HRM ) 

Introduction to Organizational Behavior 

Organizational Behavior (OB) is about understanding, predicting, and managing how people act in a workplace, either on their own or in groups. It helps us figure out why people behave the way they do at work and how we can use that understanding to improve how organizations function.

Internal and External Perspectives of OB

• Internal Perspective: This idea focuses on the individual, suggesting that a person's actions are shaped by their own thoughts, feelings, and experiences.
• External Perspective: This idea says that a person’s behavior is mostly influenced by outside factors, like the work environment, rules, leadership, and society.

Why OB is Important

1. Understanding Relationships: OB helps us understand how people interact with their co-workers, managers, and subordinates, making it easier to work together.
2. Predicting Behavior: It helps us predict how people will act in different situations, which can help avoid conflicts and improve decision-making.
3. Better Communication: Understanding OB leads to better communication between team members and across the organization.
4. Improving Marketing: By understanding people’s behavior, companies can better meet the needs of their customers.
5. Motivating Employees: Managers can use OB to encourage and motivate employees, leading to better performance.
6. Making Change Easier: OB helps in managing changes in the workplace by anticipating how people might react to them.
7. Achieving Goals: OB helps align people’s behavior with the goals of the organization, making it more effective.

Key Factors of OB

There are three main factors that affect behavior in an organization:

1. People: The individuals and teams within the company and how they interact.
2. Structure: The way the organization is arranged, including the hierarchy and roles of people within it.
3. Technology: The tools and systems used to get work done, which impact how people work.

By understanding these factors, organizations can create a better work environment, improve teamwork, and reach their goals more efficiently.

People

An organization is made up of individuals with different personalities, skills, interests, values, and backgrounds. To create a positive work environment, everyone should be treated fairly and judged based on their work and contributions, rather than their personal differences.

Example: A company hires trainees from various states like Orissa, Haryana, and Arunachal Pradesh. During and after their training, their performance is evaluated solely based on their task completion, not on their background or where they come from.

Organizational Structure

The structure of an organization refers to how it is arranged and how relationships and roles are set up to meet organizational goals. It determines how communication flows and how responsibilities are divided among employees.

Example: The organizational structure outlines how a manager interacts with employees and co-workers, specifying reporting relationships and team dynamics.

Technology

Technology involves the use of scientific knowledge to make tasks easier and more efficient. It provides tools and systems that help employees do their work better and improve overall performance.

Example: The use of software like SAP or big data systems can significantly impact both individual and organizational performance by streamlining processes and improving decision-making.

Environment

Organizations operate within both internal and external environments:

• Internal Environment: Refers to factors within the company that impact its functioning, like employee morale, culture, and financial stability.
• External Environment: Refers to outside factors that the company cannot control but must respond to, such as economic conditions, political changes, and market competition.

Example: Internal factors like a company’s culture or employee satisfaction can influence productivity, while external factors like changes in the economy or government policies can affect how the company operates.

Key Elements of OB

The concept of Organizational Behavior is built on two main elements:

1. Nature of People: Understanding that people in an organization are different in terms of their traits, behaviors, and motivations.
2. Nature of the Organization: Understanding how the organization is structured and how it operates to achieve its goals.

Nature of People

The nature of people in an organization refers to the basic qualities and characteristics that shape how individuals behave. These traits can be common or unique, and understanding them is crucial for effective management. Some key factors that affect people's nature in the workplace include:

1. Individual Differences: Each employee is unique, so managers should avoid a "one-size-fits-all" approach and treat employees individually based on their work, not personal biases.
   Example: A manager should not favor one employee over another but should evaluate everyone fairly based on their performance.

2. Perception: Perception is how people interpret and understand the world around them, which varies from person to person.
   Example: Aman believes late-night parties are harmful, while Anamika sees them as an opportunity to make new friends. Both have different perceptions of the same event.

3. A Whole Person: People cannot be separated into their skills or abilities alone. Employees bring their whole selves—including their emotions and personal lives—to the workplace, which affects their performance.
   Example: A worker’s mood or emotional state can influence their productivity and behavior at work.

4. Motivated Behavior: Motivation drives people's actions. In a workplace, motivation can be either positive or negative:

   • Positive Motivation: Encouraging employees to achieve goals by offering rewards like promotions.
     Example: "If you finish this project, you will receive a bonus."
   • Negative Motivation: Pushing employees to perform by warning of consequences.
     Example: "If you don't meet the deadline, you might lose your position."

5. Value of a Person: Employees want to feel valued and recognized for their skills and contributions. They also seek opportunities for growth and development.

Nature of Organization

The nature of an organization refers to its purpose, the opportunities it offers, and the standards it sets. It reflects the company’s values, social system, mutual interests, and ethics.

1. Social System: Organizations interact with people and other organizations, forming social systems that can be formal or informal:

   • Formal: These include structured groups, like teams working on a project.
     Example: A company hosting a success party for completing a big project.
   • Informal: These are unstructured gatherings, like employees socializing casually.
     Example: A birthday celebration at the office.

2. Mutual Interest: Organizations and employees rely on each other to achieve their goals.
   Example: Banks rely on customers depositing money, and in return, they offer services like loans and interest.

3. Ethics: Ethics are the moral principles that guide both individual and organizational behavior. Ethical treatment of employees helps build trust and retain talent.
   Example: Companies often implement codes of ethics and reward employees for upholding ethical standards.

Inter-Individual Behavior

Inter-individual behavior refers to how people communicate and interact with each other in the workplace, including leadership, group dynamics, and conflicts. It helps in understanding power dynamics and politics within the organization.

Example: A meeting to select new board members involves discussions about leadership and decision-making, showcasing different group behaviors.

By understanding these aspects of human behavior and organizational dynamics, companies can create better working environments and achieve their goals more effectively.

Group Behavior

Group behavior refers to how a group of individuals works together within an organization to achieve shared goals. It studies how groups form, function, and contribute to the overall effectiveness of the organization. Group behavior is essential for achieving organizational goals through collective effort.

Example: A group of employees organizing a strike or rally to protest certain policies demonstrates how groups work together for a common purpose.

Roles of a Manager

A manager plays several key roles to ensure the organization functions smoothly. The manager is responsible for planning, organizing, staffing, directing, coordinating, reporting, budgeting, and controlling. Each of these roles is essential for the successful operation of a company.

1. Planning

Planning is the foundation of any project. The manager creates a roadmap for the project, outlining steps, resources needed, and timelines. A backup plan should also be in place in case the original plan doesn’t work.

• Example: A manager plans how to start a new project, decides the resources needed, and creates a schedule for completing tasks.

2. Organizing

Once the plan is set, the manager organizes all the elements—people, tasks, and resources—so everything goes according to plan. If things deviate, the manager steps in to address and fix the issues.

• Example: The manager organizes interviews to find the right software testers for a new project.

3. Staffing

Staffing involves assembling a team by grouping people based on their skills and assigning tasks accordingly. The manager must also handle any disputes or issues that arise within teams.

• Example: A manager creates a new team for a project and assigns roles to each member.

4. Directing/Leading

The manager provides guidance to employees to ensure they stay on track and avoid conflicts. This involves leading the team, giving clear instructions, and helping employees understand how to complete tasks.

• Example: A team leader provides direction to employees on how to complete their tasks and ensure deadlines are met.

5. Coordinating

The manager coordinates efforts across the organization, ensuring that employees work together effectively and communicate freely. Coordination ensures tasks are completed efficiently and helps avoid misunderstandings.

• Example: A manager coordinates the schedules of team members to meet the project deadline.

6. Reporting

It is the manager’s duty to report the progress of tasks to higher authorities. The manager also keeps track of updates on ongoing tasks and ensures that employees report their status to the manager.

• Example: A manager updates the company directors on the progress of their respective projects.

7. Budgeting

The manager must ensure that all projects are completed within the allocated budget. They monitor spending and, if necessary, report any budget issues to higher management.

• Example: A project budget allows for hiring three employees, so the manager cannot assign more than three workers to the project.

8. Controlling

The manager keeps everything under control, whether it’s finances, resources, or schedules. They ensure that everything stays organized and that no resources are misused or overallocated.

• Example: The manager prevents all team members from taking leave on the same day to avoid disruptions in project delivery.

Each of these roles contributes to the overall effectiveness of the organization and ensures that work is completed efficiently and within the company’s goals and limitations.

Various Challenges of a Manager

While managing the workflow and playing multiple roles in an organization, a manager faces several tough challenges. Some of these challenges include:

1. Managing Workforce Diversity:
   Managers must avoid discrimination and promote equality among employees, regardless of their background, culture, or ethnicity. Employees should be treated fairly, and rewards should be based solely on performance and work quality.

   • Example: Ensuring that employees from different cultural backgrounds are given equal opportunities for promotions and rewards based on their work, not their ethnicity.

2. Improving Quality and Productivity:
   A key responsibility of managers is to enhance productivity without compromising on quality. This can be achieved through two approaches:

   • Total Quality Management (TQM): Continuous focus on customer satisfaction by improving organizational processes.
   • Process Engineering: Concentrating on optimizing the production process to maintain product quality.
   • Example: Implementing better production techniques to deliver products faster while maintaining high standards of quality.

3. Responding to Labor Shortages:
   In case of a labor shortage, a manager must act swiftly to ensure that the necessary workforce is available so that product deliveries and other organizational operations are not delayed.

   • Example: Hiring temporary workers or redistributing tasks among existing staff to address a sudden shortfall in labor.

4. Eradicating Labor Shortages:
   To prevent labor shortages from recurring, managers need to plan ahead and establish backup solutions.

   • Example: Partnering with staffing agencies to ensure a steady supply of workers during peak seasons.

5. Improving Customer Service:
   To remain competitive, managers must continuously work on enhancing customer service. This requires keeping up with customer expectations and resolving issues promptly.

   • Example: Implementing a feedback system to track customer satisfaction and making necessary improvements based on feedback.

6. Improving Ethical Behavior:
   Managers are responsible for maintaining ethical standards in the workplace. They must ensure that employees behave appropriately and adhere to the company's ethical guidelines.

   • Example: Establishing clear rules regarding workplace conduct and addressing unethical behavior quickly and effectively.

These challenges require careful attention and strategic action from managers to ensure the smooth functioning of the organization and maintain work-life balance.

Organizational Behavior as a Field of Study

Organizational behavior (OB) goes beyond being just a discipline; it’s a field of study that reflects the collective behavior of people and management. While a discipline relies on theoretical foundations, OB integrates knowledge from various fields like psychology, sociology, and anthropology. It is used to address organizational challenges, especially those related to human interactions and behavior.

Four Types of OB Models

There are four different models in organizational behavior that help explain how people and management interact within an organization. These models will be explored to understand their influence on organizational dynamics.

1. Autocratic Model

The autocratic model is based on the power and authority of the manager. In this model, managers give strict orders, and employees are expected to obey without question. Employees are heavily dependent on their managers and often feel restricted. Because they have little freedom or responsibility, their performance tends to be low, as they do just enough to meet basic expectations. This model often leads to frustration and dissatisfaction among employees, as they lack motivation and autonomy in their roles.

2. Custodial Model

The custodial model focuses on providing employees with security through benefits like good salaries, healthcare, and job security. Instead of depending on their manager, employees rely on the organization for their well-being. While this model helps employees feel safe and cared for, it does not necessarily inspire them to perform at their best. Although they are generally satisfied, they may not feel motivated to go beyond their assigned tasks because their cooperation is mostly passive, driven by the security provided rather than personal growth or ambition.

3. Supportive Model

The supportive model is built on leadership and encouragement from managers. In this model, managers focus on supporting and guiding employees, helping them grow and improve their job performance. Employees feel valued and recognized for their contributions, which boosts their motivation and engagement. This model encourages employees to participate actively and take pride in their work. As a result, there is a positive atmosphere in the organization where employees feel appreciated, leading to higher productivity and job satisfaction.

4. Collegial Model

The collegial model emphasizes teamwork and partnership between managers and employees. In this model, employees and managers work together as equals, with a shared responsibility for the organization’s success. Employees feel a sense of ownership and self-discipline, leading to higher levels of responsibility and motivation. This model fosters collaboration, mutual respect, and a sense of belonging among employees. As a result, employees are more likely to contribute to the company’s success because they feel they are part of a team working toward common goals.