CHAPTER

INSTRUCTORS MANUAL
1
Introduction to
Organizational
Behaviour
Learning Outcomes
1 Defne organizational behaviour.
2 Explain the goals and forces of organizational behaviour.
3 Understand the evolution and fundamental concepts of organizational behavior.
4 Explain the distinction between the theories of organizational behaviour.
5 Understand the major approaches of organization behaviour.
6 Discuss how organizational behaviour responds to globalization, diversifcation and technology
advancement.
Chapter Outline/Introduction
1 If people are regarded as organizations most important asset then understanding how humans
behave in organizations is imperative. Tus, managers and future managers need to develop their
interpersonal skills to understand their employees better.
2 Understanding organizational behaviour allows the managers to better manage employee-
manager relations, improves job satisfaction, and stimulates innovation and creativity thus
guiding him into creating a dynamic working climate.
1.1 Definition
1 According to Gary Johns, Organizations are social inventions for accomplishing goals through
group eforts. Tere are three signifcant aspects in the above defnition, which are as follows:
Social Inventions: It is the people that primarily make up an organization.
Accomplishing Goals: All organizations have reasons for their existence. Tese reasons are the
goals towards which all organizational eforts are directed.
Group Efort: Individuals in themselves have physical and intellectual limitations and these
limitations can only be overcome by group eforts.
2 Organizational behaviour is concerned with peoples thoughts, feelings, emotions and actions in
setting up a work.
1.2 Goals of Organizational Behaviour
1 Describe Describe systematically how people behave under a variety of conditions.
2 Understand Understand why people behave as they do.
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Instructors Manual
3 Predict Te managers would have the capacity to predict which employees might be dedicated
and productive, or which ones might cause problems.
4 Control Managers need to be able to improve results through the actions they and their
employees take, and organizational behaviour can aid them in their pursuit of this goal.
1.3 The Importance of Organizational Behaviour
1 Developing interpersonal skills
Skills can be obtained through organizational behaviour exposure. Organizational behaviour
exposes managers to highly-needed interpersonal skills such as leading, motivating, analytical
ability, decision-making skills and many others.
2 Personal development through organizational behaviour
A person has to understand himself frst before understanding others. Understanding others
leads to personal development and can also lead to enhanced self-knowledge and self-insight.
3 Achieving organizational and individual efectiveness
Understanding organizational behaviour aids managers to become better people-oriented
managers.
4 Sharpening and refning our decisions and actions
Organizational behaviour sharpens and enlarges the domain of our common sense into making
good decisions executed in our actions.
1.4 Forces or Elements of Organizational Behaviour
1 People: People make up the internal social system in the organization. Tey consist of individuals
and groups.
2 Structure: Structure defnes the formal relationship and use of people in the organization.
3 Technology: Technology imparts the physical and economic conditions within which people
work.
4 Social System: Te social system provides an external environment within which the organization
operates.
1.5 Evolution of Organizational Behaviour
1 Scientifc Management Approach
Tis theory supported the use of certain steps in scientifcally studying each element of a job,
selecting and training the best workers for the job and making sure that the workers follow the
prescribed method of doing the job.
2 Bureaucratic Approach
Max Webers idea of bureaucracy was logical, rational and efcient. He made the naive assumption
that one structure would work best for all organizations.
3 Hawthorne Studies
Te fndings of these studies were given a new name human relations. Te workers are infuenced
by social factors and the behaviour of the individual worker is determined by the group.
Introduction to Organizational Behaviour
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1.6 Basic Models of Organization Behaviour
1 Autocratic Model
Te autocratic model depends on power. Tose who are in command must have the power to
demand you do this-or else, meaning that an employee who does not follow orders will be
penalized.
2 Te Custodial Model
A successful custodial approach depends on economic resources. Te resulting managerial
orientation is focused towards money to pay wages and benefts.
3 Te Supportive Model
Te supportive model depends on leadership instead of power or money.
4 Te Collegial Model
Te collegial model depends on the managements building a feeling of partnership with
employees.
5 Te System Model
It is the result of a strong search for higher meaning at work by many of todays employees; they
want more than just a paycheck and security from their jobs.
1.7 Fundamental Concepts of Organizational Behaviour
NATURE OF PEOPLE
1 Individual Diferences: Individuals are diferent in their physical and mental traits.
2 A Whole Person: Tis means that the individual does not only come with skills and intelligence
but also a personal life, needs and desires.
3 Motivated Behaviour: It is the urge of the individual to satisfy a particular need that motivates
him to do an act.
4 Human Dignity/Value of the Person: It stresses that people are to be treated with respect and
dignity.
NATURE OF ORGANIZATION
1 Social System: A system is a group of independent and interrelated elements comprising a unifed
whole.
2 Mutual Interest: Organizations need people and people in return need organizations.
Organization needs employees to reach its objectives and people need organizations to help them
reach individual needs and objectives.
3 Holistic Organizational Behaviour: Holistic organizational behaviour interprets people-
organization relation ships in terms of the whole person, whole group, whole organization and
whole social system.
1.8 Approaches to Organizational Behaviour
1 Human Resources Approach
Te human resources approach is concerned with the growth and development of people towards
higher levels of competency, creativity and fulflment, because people are the central resource in
any organization.
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Instructors Manual
2 A Contingency Approach
A contingency approach to organizational behaviour implies that diferent situations require
diferent behavioural practices for efectiveness instead of following a traditional approach for all
situations.
3 Productivity Approach
Productivity is a ratio that compares units of output with units of input.
4 Systems Approach
A system is an interrelated part of an organization or a society that interacts with everyone related
to that organization or society and functions as a whole.
5 Interdisciplinary Approach
Te combination of people from diferent disciplines if managed properly will enhance
productivity and work methods.
1.9 Response of Organizational Behaviour on Globalization
and Diversification
1 Social Conditions
In many countries due to poorly developed resources, there is shortage of managerial personnel,
scientists and technicians. Hence the required skills must be temporarily imported from other
countries, and training programs need to be developed to train the local workers.
2 Political Conditions
When the government is unstable, organizations become cautious about further investments.
Tis organizational instability leaves workers insecure and causes them to be passive and low in
taking any initiatives.
3 Economic Conditions
Te most signifcant economic conditions in less developed nations are low per capita income
and rapid infation. Infation makes the economic life of workers insecure when compared to
developed countries.
4 Organization Culture Diferences
Changes in the global marketplace have brought the need to think globally. For any company
competing in the global marketplace it is essential to understand the diverse cultures of the
individuals involved and develop cross-cultural sensitivity.
5 Workforce Diversifcation
Whenever an organization expands its operations to other countries, it tends to become
multicultural and will then face the challenge of blending various cultures together.
1.10 Response on Organizational Behaviour and
Technological Advancement
Te great beneft of technology is that it allows people to do more and better work, but it also restricts
people in many ways thus having both advantages as well as disadvantages. Each technological
advancement places increased pressure on organizational behaviour to maintain a delicate balance
between technical and social systems.
Introduction to Organizational Behaviour
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Summary
Organizational behaviour is concerned with peoples thoughts, feelings, emotions and actions in
setting up a work. Understanding individual behaviour is in itself a challenge, but understanding
group behaviour in an organizational environment is a monumental managerial task. Goals of
organization behaviour are to describe, understand, predict and control.