TABLE OF CO

TE
TS

CHAPTER TITLE PAGES

1 Executive Summary 1
2 Introduction 2
3 Objectives of the Project 3
4 Nature and Scope of the Project 4
5 Research Methodology used 5
6 Formulation of Hypothesis 7
7 Literature Review 8
7.1. Definition of OB 8
7.2. Framework for an OB system 9
7.3. Generalization about OB 12
7.4. Basics of Organisational Socialisation 13
7.5. Individual Motivation & OB: The Two faces Of Power 14
7.6. Group dynamics 16
7.7. HR predictions for future of OB 19
A. Workplace Flexibility
B. Global Business
C. Work and Society
D. Workforce Development
E. Definition of Jobs
F. Strategic Role of HR
7.8. Challenges and opportunities for OB 24
8 Organisational Behaviour Model 27
8.1. Autocratic 28
8.2. Custodial 29
8.3. Supportive 30
8.4. Collegial 31
9 Company Profiles
9.1. Adecco HR Consultants 32
9.2. Shoppers stop 33
9.3. ICICI Prudential 34
9.4. Tata Consultancy Services 35
10 Findings and their analysis 36
11 Results 40
12 Strengths and Limitations of the study 41
13 Summary and Conclusion 42
14 Recommendations 44
15 Bibliography 46
16 Annexure : Questionnaire 48
 1. EXECUTIVE SUMMARY

An organization’s base rests on its management’s philosophy, values, vision and goals. This in turn drives
the organizational culture which is composed of the formal organization, informal organization and the
social environment. The culture determines the type of leadership, communications and group dynamics
within the organization. The workers perceive this as the quality of work life which directs their degree of
motivation. The final outcomes are performance, individual satisfaction, and personal growth and
development. All these elements combine to build the behavioural model or framework that the organization
operates from.

The purpose of carrying out this project is to identify what behavioural model the organization prefers to
operate in. A tool called "Organizational Behaviour Survey" was used to assess what behavioural model the
organization operates on. It is based upon the theory that organizations generally operate out of one of the
four modes – Autocratic, Custodial, Supportive, or Collegial.

This report discusses the four evolving models defined by Keith Davis; autocratic, custodial, supportive,
and collegial. It also shows the parallels of the need for security with an autocratic management style; the
need for belonging and achievement with a custodial and supportive management style; and self-
actualization with a collegial style of management. It uses this parallel with the 'hierarchy of needs' as a
means of illustrating key concepts between the different models of organizational behaviour.
This project report is a sincere effort to understand the current Indian scenario by indicating what
behavioural model is being followed by most Indian companies which basically helps the employee grow
and move ahead with their future perspectives.

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 2. I
TRODUCTIO

With the beginning of globalization, organizations in the present scenario are employing people from
diverse cultural and ethnic backgrounds. Apart from varied workforce, managers also have to deal with
other difficulties like changes in technological advancements, strategic alliances, etc. improving the quality
of work-life is the latest mantra of all corporate houses. High attrition rates and decline in experienced
personnel is what most companies are facing. People are equipped with high qualifications and expertise in
management principles. All these challenges complicate their task of managing an organization. If the
managers are to facilitate the smooth functioning of their organization, they have to effectively manage the
most important resource available to them, i.e., the human resource. This is where OB plays an important
role. OB is a study that helps managers in understanding and analyzing the nature of an organization’s
workgroups and the individuals within a workgroup.

Companies are concentrating on empowering the employee, giving opportunity to cross functional learning
and award programs so as bring about a positive approach in organizational behavior. practical leadership
qualities are located and juniors are sharpen towards management functions.

Organizational behavior is the systematic study and careful application of knowledge about how people – as
individuals and as groups – act within the organizations. Organizational Behavior studies encompass the
study of organizations from viewpoints, methods, and levels of analysis. Whenever people interact in the
organizations, many factors come into play. Modern organizational studies attempt to understand and model
these factors.

"Organizational behaviour defines the manner in which the organization recognizes the function of people in
relation to its organizational goals. There is need to identify amongst industries as to what OB model an
organisation prefers to operate in, which model is superior and also what the benefits of following any
particular model are. Also, very little has been published on the comparative analysis and quantitative
benefits of these models. Hence a sincere effort has been made to compare, analyse and highlight the
benefits of such models. To do so, a survey was conducted in 4 different Indian companies viz; Adecco HR
consultants, ICICI Prudential, Tata Consultancy Services Ltd and Shoppers Ltd.

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 3. OBJECTIVES OF THE PROJECT

The objectives of the project include the following:

• To understand the various roles performed by a manager and the skills a manager needs to perform
his/her roles effectively from the view point of the employees
• To understand the principles and elements of an organizational behaviour system
• To understand the challenges and opportunities for OB
• To study various behavioural models under OB
• To study basic elements of organisational Socialisation and leadership
• To find out what the employees think about the behavioural models followed by their company
• To analyze the viewpoints of the employees regarding the current management style in their
company
• To make a comparative analysis of the benefits / limitations associated with alternative models of
organizational behaviour and their effects
• To identify what behavioural model the organization prefers to operate in.
• To identify future trends in the use of these models
• To suggest better methodology for organisations to achieve success and growth in the future.

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 4.
ATURE A
D SCOPE OF THE PROJECT

• The project is an attempt to assist industry members in choosing the right OB model for achieving
success in business in the future.
• The project is a descriptive study of the principles of OB, the various factors affecting OB and
various elements of organisational socialisation and leadership.
• The project also includes a comparative analysis of the various OB models for achieving success in
business. Comparative benefits of such models have also been highlighted.
• Scope of the project is not limited to data available in public domain but also private and confidential
information of organisations and hence is comprehensive.
• Project report includes actual industry figures and results in the form of employee feedback.
• The scope of the project also includes recommending new OB models for Indian companies because
of the dynamic nature of Organisational behaviour.

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 5. RESEARCH METHODOLOGY USED

DATA COLLECTIO

The sheer nature of the project is descriptive and comparative and also permits collection of primary data
like questionnaire, feedback forms etc. Hence data collection was done using both primary and secondary
data. Primary data was collected from 30 employees belonging to different departments in 4 organisations
through questionnaires. The secondary data was retrieved from the sources like the files, records,
documents, annual reports and occasional publications of various organisations / institutions and their
monthly House Magazines.

Methodology used for collecting Primary data:

• Organisational behaviour Survey – Questionnaire used to assess what behavioural model is being
followed by a company.
• Direct / Face-to-face interviews
• Verbal Feedback from employees

Methodology used for collecting Secondary data:

• Reference Books on OB
• Study of OB models formulated and applied by various organisations
• News articles / Reference papers
• Internet articles and websites

SAMPLI
G
30 Employees both males and females from 4 organizations were randomly selected. The employees were
between the age ranges of 28 to 40. All the employees had their education up to post-graduation. The types
of organizations participated in the study were financial, retail, IT and HR consultancy. The employees
represented different departments such as sales, marketing, accounts, and human resources of their
respective organizations.

5
 A questionnaire was used as mentioned below:

• It is called “Organizational Behaviour Survey” used to assess what behavioural model the
organization operates on. It is based upon the theory that organizations generally operate out of one
of the four modes – Autocratic, Custodial, Supportive, or Collegial.
• Reliability and Validity of the Survey: Since this survey is a learning tool used in training
programs such as leadership development, rather than a research tool, it has not been formally
checked for reliability or validity.

PROCEDURE:
The questionnaires were given individually to each employee. The employees were familiarized with the
instructions on the questionnaire. Clarifications regarding any questions were provided. While conducting
the survey in four different Indian companies based on the four models of OB which is autocratic, custodial,
supportive and collegial, an analysis was made to state which model is most followed by the Indian
companies. To confirm the reliability of the result obtained from the survey, a chi-square test was
performed.
The employees were thanked for taking out time from their busy schedule and filling the questionnaires.

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 6. FORMULATIO
OF HYPOTHESIS

There is need to identify amongst industries as to what OB model an organisation prefers to operate in,
which model is superior and also what the benefits of following any particular model are.

Also, very little has been published on the comparative analysis and quantitative benefits of these models.
Hence a sincere effort has been made to compare, analyse and highlight the benefits of such models.
Hypothesis is thus formulated as per the following assumptions:

ASSUMPTIO
1:
“An organisational behavioural model is a pre-requisite for achieving excellence in business”

ASSUMPTIO
2:
“Organisational behavioural models are necessary as they give an opportunity to study the efficiency of
human behaviour in organisations.”

ASSUMPTIO
3:
“Companies following OB models are doing well in business”

ASSUMPTIO
4:
“OB Models are continuously evolving systems which are very dynamic in nature and hence cannot be taken
as a single reference parameter like any mathematical equation or formulae.”

To confirm the accuracy of the result obtained from the survey, a chi-square test was performed using one of
the custodial type of a question from the 24 questionnaire, since the hypothesis is formed on the basis of the
result and conclusion obtained from the survey. Based on above assumptions the hypothesis is as follows:

H0: Custodial model is not mostly followed by Indian companies.

H1: Custodial model is mostly followed by Indian companies.

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 7. LITERATURE REVIEW

7.1 Definition of OB
Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and
groups act within the organizations.
Explanation: It interprets people-organization relationships in terms of the whole person, whole group,
whole organization, and whole social system. Its purpose is to build better relationships by achieving:
• Human objectives
• Organizational objectives
• Social objectives
It is the study of human and group behavior within organizational settings. The study of organization
behavior involves looking at
• Attitudes
• Interpersonal relationships
• Performance,
• Productivity,
• Job satisfaction,
• Commitment of employees,
• Levels of organizational commitment and industrial relations
More definitions of OB are as follows:
1. O.B. is a field of study that investigates the impact that individuals, groups and structures have on
behaviour within organizations for the purpose of applying such knowledge towards improving an
organization’s effectiveness.
2. O.B. can be defined as the systematic study of the actions and reactions of individuals, groups and
sub-systems.
3. O.B. is the study and understanding of individual and group behaviour, patterns of structure in order
to help improve organizational performance and effectiveness.
4. O.B. is one of the most complex and perhaps least understood academic elements of modern general
management, but since it concerns the behaviour of people within organizations it is also one of the
most central- its concern with individual and group patterns of behaviour makes it an essential
element in dealing with the complex behavioural issues thrown up in the modern business world.
5. O.B. is an inter-disciplinary behaviour science studying phenomena and dynamics (processes) of
organizations and their various units.

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 7.2 Framework for an Organisational Behavioural System

An organization’s base rests on its management’s philosophy, values, vision and goals. This in turn drives
the organizational culture which is composed of the formal organization, informal organization and the
social environment. The culture determines the type of leadership, communications and group dynamics
within the organization. The workers perceive this as the quality of work life which directs their degree of
motivation. The final outcomes are performance, individual satisfaction, and personal growth and
development. All these elements combine to build the behavioural model or framework that the organization
operates from, which is a systematic study of human beings under controlled conditions helps in recognizing
the consistencies in behaviour of people. It also helps in accurate prediction and explanation of human
behaviour.

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Theoretical frameworks such as cognitive framework, behavioural framework, and social learning
framework help in developing an overall model of organizational framework.

A) Cognitive Framework
The cognitive approach is based on the expectancy, demand, and incentive concepts. Under this approach,
behaviour is determined with the help of cognition. The term cognition can be explained as a psychological
process of recollecting information and past experiences. Cognition, in general, precedes behaviour and thus
provides inputs regarding a person’s thoughts, perception, problem solving, and information processing. The
concept of a cognitive framework is clearly explained by Edward Tolman, who conducted some laboratory
experiments on animals. He believed that behaviour was the appropriate unit of analysis, meant for a definite
purpose, and was directed towards a goal. According to Tolman, if a particular event always led to a certain
consequence, it could be assumed that the event would always lead to the same consequence. He further
elaborated that such findings led to the expectancy that a particular event would always have a certain
consequence. The concept of expectancy implied that every organism thought of and was aware of the goal.
Although there were controversies regarding the contributions of this approach to behavioural sciences, the
framework gained importance after the progress made in the field of psychology. In OB, the cognitive
approach is applied in the analysis of perception, personality and attitude, goal setting, and motivation.

B) Behaviouristic Framework
Ivan Pavlov and John B Watson who pioneered the behaviouristic theory explained human behaviour with
the help of stimulus-response experiments. The duo observed that a stimulus elicits a certain response,
which results in learning. For example, when a person is pricked with a pin, he immediately flinches. The
theory tried to explain the role of physical reflexes in human beings that contributed to the stimulus-response
relationship. BF Skinner further developed this concept and explained operant behaviours that had not been
dealt with by the earlier researchers. Operant behaviour indicates voluntary or learned behaviour. After
conducting operant conditioning experiments, Skinner concluded that the consequences of the response of
an individual to a stimulus could lead to a particular behaviour rather than the stimulus itself. He concluded
that stimuli only managed to prompt certain behaviour and did not actually cause the behaviour. Skinner
believed that behaviour was a function of the consequences to response. Although the behaviouristic
approach is based on the environment, some behaviouristic scientists believe that cognitive variables too
have a role in this approach. As a result of continuous efforts, a new area called the social learning approach
has evolved, which incorporates both cognitive and behaviouristic concepts.

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C) Social Learning Framework
The social learning approach incorporates both the cognitive and behavioural approaches though it is
influenced more by the behavioural approach than the cognitive approach. Like the behaviouristic
framework, the social learning concept considers behaviour as the appropriate unit of analysis. According to
the social learning framework, people are self-aware and make efforts toward conscientious behaviour. They
gain knowledge of the environment and accordingly alter and construct it in a manner that is most suitable to
them. Albert Bandura explained behaviour as a continuous reciprocal interaction among cognitive,
behavioural, and environmental determinants. According to him, the individual through his/her actions
creates an environmental condition that in turn affects his/her behaviour. He also explained that the
environmental situation does not necessarily stimulate an individual to respond; rather, it is the mutual
interaction between the environment and the individual that elicits a response. This experience generates a
specific behaviour in the individual. This behaviour so observed may help in predicting the future behaviour
of the individual.

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 7.3 Generalization about Organisational Behaviour
People tend to develop some generalizations that are helpful in explaining and predicting what others do and
will do. They arrive at these generalizations by observing, sensing, asking, listening, and reading. However,
the validity of these generalizations remains a question. Some generalizations may accurately explain and
predict the behaviour of others. Most of the generalizations held by people frequently fail to explain why
people behave in a particular way. For instance, consider the following statements about work-related
behaviour:
• Happy workers are productive workers.
• Individuals are most productive when the boss is friendly, reliable, and unassuming.
• The behaviour of good leaders is consistent irrespective of the situations they face.
• Interviews are effective selection devices to differentiate between applicants who would turn out
to be high and low-performing employees in future.
• Everybody likes a challenging job.
• Individuals work harder when asked to put in their best instead of specifying the goals.
• People are more concerned about their own salaries than of others.
• The members of effective work groups do not get into conflict with each other.

The validity of these statements is debatable. It is evident that these views about human behaviour are based
more on intuition than on facts. However, one can improve on his/her explanatory and predictive abilities by
adopting a systematic approach towards the study of human behaviour.

Human beings in general behave in a way that they believe is in their best interests. It is also possible that
one person’s behaviour might seem irrational to another. This is because of individual differences in
perceiving a particular situation. Therefore, getting to know about a person’s perception of a particular
situation helps in understanding and predicting his/her behaviour. Also if we take a closer look, we can find
a consistency in the behaviour of every individual.

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 7.4 Basics of Organizational Socialization:

Organizational socialization is the process of “learning the ropes”, the process of being indoctrinated and
trained, the process of being taught what is important in an organization or subunit thereof. This process
occurs in school. It occurs again when the graduate enters an organization on his first job. It occurs again
when he switches within the organization from one department to the other. It occurs allover again when he
leaves one organization and joins another.
It is a process which can make or break a career, which can make or break organization system of manpower
planning. The speed and effectiveness of the socialization determine employee loyalty and commitment,
productivity and turnover. The basic stability and effectiveness of organizations therefore depends upon
their ability to socialize new members.

Elements of Organizational Socialization:

Socialization: It focuses clearly on the interaction between a stable social system and the new members who
enter it. The concept refers to the process by which a new member learns the value system, these norms and
the required behavior patterns of the society, organization and group he is entering. It does not include all
learning. It includes of only those values, norms and behavior patterns which, from the organization point of
view or group point of view, is necessary for any new member to learn.
Such values, norms and behavior patterns are all about:
• Basic goals of the organization
• The preferred means by which those goals should be achieved.
• The basic responsibilities of the member in the role which is being granted to him by the
organization.
• The behavior patterns which are required for effective performance in the role.
• A set of rules or principles which pertain to the maintenance and integrity of the organization.
The novice learn the values and the norms depending on the degree of prior socialization.
The success of socializing techniques depends on factors which are not always under the control of the
organization.

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7.5 Individual Motivation & Organization Behavior: The Two faces Of Power (David C.McClelland)

One of the keys to economic growth is the need to achieve ,because the men who are concerned about doing
things better have become active entrepreneurs and created growing business firms which are the foundation
stones of a developing economy. The man with an achievement is not dependent on the approval of others;
he is concerned with improving his own performance. For as a one man firm grows larger, it requires
division of function and some organizational structure. Yet is it fairly clear that a high need to achieve does
not equip a man to deal effectively with managing human relations. For instance, a salesman with a high n
achievement does not necessarily make a good sales manager. Stimulating achievement motivation in others
requires a different motive and a different set of skills than wanting achievement satisfaction for one self.
Research on achievement motivation has now shifted its focus from individuals with high n achievement to
the climate that encourages him and rewards him for doing well.
For no matter how high a person’s need to achieve maybe, he cannot succeed if has no opportunities, if the
organization keeps him from taking initiatives or does not reward him if he does. A simple illustration to this
point, it was found in India it did no good to raise the achievement motivation through training if the man
was not in charge of his own business. That is to say that even if now “he is all fired up “and prepared to
more active and entrepreneurial, he could not do much as long as he was working for some one else who had
the final say as to any of the things he wanted to do would infact be done. Thus to better understand what
happened to him, we must shift our attention to who is managing him.
Since managers are primarily concerned with influencing others, it seems obvious that they would be
characterized by a high need for power and that by studying the power motive we could learn something
about the effective managerial work. That is to say if A gets B to do something, A is at one and the same
time a leader (that is he is leading B) and exercising some kind of influence or power over B. Thus
leadership and power are too closely related aspects. In general individuals are proud of having a high need
to achieve, but dislike being said that they have a high need for power. Power must have positive face too.
For after all people cannot help influencing each other. Organizations cannot function without some kind of
authority relationship. Surely it is desirable for some people to concern themselves with management, with
working out influence relationships that make it possible to achieve the goals of the group.

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There are two faces of Power:
One can be described as a kind of unsocialized concern for personal dominance. It is aroused in men by
drinking alcohol and probably by other techniques like threatening of physical violence, which have not yet
been tested experimentally. At the fantasy level, it expresses in terms of thoughts of exploitative sex and
physical aggression. At the level of action, it leads to heavier drinking, more trouble from drinking, more
casual sexual contacts, and a tendency to watch TV shows dealing with crime and violence.
The other face of power motive is more socialized. It is aroused by the possibility of winning an election, or
the expectancy that one will be able to win over the other in a competitive game. At the fantasy level it
expresses itself in terms of more conventional thoughts of persuasion and interpersonal influence. So far as
the activities are concerned with more socialized aspect of power participate more often in competitive
sports, even as adults and end up as officers more often in the organizations they join.
The more direct and less socialized way of expressing power , as in direct physical aggression, appears to
occur earlier as a child tries to get what he wants simply by pushing another child out of the way. Later on
he must be more acceptable and more inhibited means of influencing other people.

The
ature of Power:
• The negative face of power is characterized by the dominance submission mode. If I win, you lose. It
is more perspective in the sense that the strategies employed are adopted earlier in life before the child is
sufficiently socialized to learn more subtle techniques of influence. In real life it leads to fairly simple
direct ways of feeling powerful- like drinking heavily, chasing women, acquiring some kind of prestige
supplies or watching fights on television. It does not lead to effective social leadership.
• The positive face of power is characterized by the concern for group goals, for finding what goals
will move them, for helping the group to formulate them, for taking some initiative in providing the
members of the group with the means of achieving such goals, and for giving group members the feeling
of strength and competence to work hard for such goals. In real life, it leads to an interest in sports, politics
and holding office.

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 7.6 Group Dynamics: (Rensis Likert)

The nature of highly effective groups:

• It is important to emphasize that this does not say that all groups and all committees are highly
effective or are committed to desirable goals.
• Groups can vary from poor to excellent.
• They can have desirable values and goals, or their objectives can be most destructive.
• They can accomplish much that is good or they can do much harm.
• The values of the group, the stability of these values, the group atmosphere and the nature of
conformity demanded by the group determine whether a group is likely to have a positive or negative
impact upon the growth and behavior of its members.
• Loyalty to a group produces pressures towards conformity. A group may demand conformity to the
idea of supporting, encouraging, and giving recognition for individual creativity, or it may value
rigidity of behavior, with seriously narrowing and dwarfing consequences.
• This later kind of pressure for conformity keeps the members from growing and the robs the group of
original ideas.
• Some business executives are highly critical of groups – committees and inability of committees to
accomplish a great deal. Their criticisms are often well warranted.
• Sometimes committees are wasteful of time and unable to reach decisions. The decision when
reached is mediocre.
• Moreover some members of management of various hierarchal levels use committees as escape
mechanism – as to avoid the responsibility for a decision.
• There has been a lack of systematic study of ways to make committees effective.
• Far less research is being devoted to learning the role of groups & group processes & how to make
the most effective use of them in an organization than to most management.

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The
ature of highly effective work groups:

• The highly effective group, as we shall define it, is always conceived as being a part of a lager
organization.
• All the persons in a company also belong to groups and organizations outside of the company. For
most persons, membership in several groups both within & outside the company is a rule rather
than the exception.
• This means of course, that no single group. Even the highly effective work group, dominates the
life of any member.
• Each member of the organization feels pressures from membership in several different groups and
is not influenced solely by loyalty to any one group.

Leadership Functions:

• Certain leadership functions can be shared with group members; others can be performed only by the
designated leader.
• The leader has full responsibility for the group’s performance and for seeing that his group meets the
demands and expectations placed upon it by the organization.
• Although the leader has full responsibility, he does not try to make all the decisions. He develops his
group into a unit which, with his participation, makes better decisions than he can make alone.
• Through group decision-making each member feels fully identified with each decision and highly
motivated to execute it fully. The over-all performance of the group, as a consequence, is even better
than the excellent quality of decision.
• Although the leader accepts the responsibility associated with the role of a leader of a group which is
a part of a larger organization, he seeks to minimize the influence of his hierarchical position.
• He is aware that trying to get the results by “pulling the ranks” affects adversely the effectiveness of
his group and his relationships to it. Thus, he endeavors to de emphasize status. He does this in a
variety of ways that fit his personality and method of leading, as for example by:
• Listening well & patiently
• Not being impatient with the progress being made by the group, particularly on difficult
problems.
• Accepting more blame than maybe warranted for any failure or mistake.
• Being careful never to impose a decision upon the group.

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The leader strengthens the group and group processes by that all problems which involve the group are dealt
with by the group.
• The leader has adequate competence to handle the technical problems faced by his group, or he sees
that access to this technical knowledge is fully provided.
• The leader helps to provide the group with the stimulation arising from a restless dissatisfaction.
• He discourages complacency and passive acceptance of the present.
• The leader is an important source of enthusiasm for the significance of the mission of the mission
and goals of the group.
• As an over-all guide to his leadership behavior, the leader understands and uses sensitivity and skill
the principle of supportive relationships.
• In the highly effective work group, many functions are performed either by the leader or by the
members, depending upon the situation or the requirements of the moment.
• The leaders and members, as a part of their roles in the group, establish & maintain an atmosphere
and relationships which enable the communication, influence, decision-making, & similar processes
of the groups to be performed effectively.

Benne & Sneats (1948) have prepared a description of different roles played in well-functioning groups:
Group roles are classified into two broad categories:
• Group Task roles: These roles are related to the task which the group is deciding to undertake or
has undertaken. They are directly concerned with group effort in the selection and definition of a
common problem and in the solution of that problem.
• Group building and maintenance roles: These roles concern the functioning of the group as a
group. They deal with the group’s efforts to strengthen, regulate and perpetuate the group as a group.

The highly effective work group, it will be recalled, is an “ideal model”. It may sound completely
unattainable. This does not appear to be the case. There is impressive evidence supporting the view that this
ideal can be approximated, if not fully reached, in actual operation in any organization. This evidence is
provided by the highest producing managers & supervisors in American industry and govt.

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 7.7 HR predictions for the Future of Organizational Behavior:

With the advent of globalization, organizations in the present scenario are employing people from different
cultural and ethnic backgrounds. Apart from diverse workforce, managers also have to deal with other
challenges like changes in technological advancements, strategic alliances, etc. All these challenges
complicate their task of managing an organization. If the managers are to facilitate the smooth functioning
of their organization, they have to effectively manage the most important resource available to them, i.e., the
human resource. This is where OB plays an important role. OB is a study that helps managers in
understanding and analyzing the nature of an organization’s workgroups and the individuals within a
workgroup. The Indian economy has taken on added importance in organizational behavior circles in recent
years, as Indian companies have special requirements and dynamics to contend with. Researchers are
currently studying such things as communications between and among Indian business operations, cultural
differences and their impact on individuals, language difficulties, motivation techniques in different cultures,
as well as the differences in leadership and decision-making practices from country to country. Today,
organizational behavior scientists are dealing with a wide range of problems confronting the business world.
For instance, they continue to study downsizing, career development in the global economy. They are trying
to determine just what effects such factors are having on the workplace and what can be done to alleviate
associated problems.
Organizational behavior is currently a growing field. Organizational studies departments generally form part
of business schools, although many universities also have industrial psychology and industrial economics
programs. The field is highly influential in the business world with practitioners like Peter Drucker and Peter
Senge, who turned the academic research into business practices. Organizational behavior is becoming more
important in the global economy as people with diverse backgrounds and cultural values have to work
together effectively and efficiently.

During the last 20 years organizational behavior study and practice has developed and expanded through
creating integrations with other domains:
• OB has become an interesting concept in understanding firms as communities, by introducing
concepts like Organizational culture, 'organizational rituals' and 'symbolic acts' enabling new ways to
understand organizations as communities.
• Leadership Understanding: the crucial role of leadership at various level of an organization in the
process of change management.
• Ethics and their importance as pillars of any vision and one of the most important driving forces in
an organization.

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Some HR Predictions for the future - by Floyd Kemske
The HR predictions for the future are related to Workplace Flexibility, Global Business, Work and Society,
Workforce Development, Definition of Jobs, and Strategic Role of HR.

A) Workplace Flexibility

Collaborative cultures will be the workplace model. Creative employment contracts will support more time
off, flexibility in hours and work location, technological job aids and more pay at risk with significant
upside potential. Company intranets will become a major tool for communication, training and benefits
administration; HR will play a leading role in developing this important tool. Intelligence through
knowledge transfer capability will separate the best employees from the rest. Employees will have more and
more choices about work arrangements, allowing them to meet their individual needs. Work hours
scheduling will become less important as organizations focus on performance and results. Company
facilities will become "virtual" through work-at-home, telecommuting and outsourcing. The workweek will
be less structured—employees will still work 40-plus hours, but at varied times and places other than the
office. Legislation will lead to greater portability of health, welfare and retirement benefits. Free-lance teams
of generic problem solvers will market themselves as alternatives to permanent workers or individual
temporary-worker.

B) Global Business

The role of corporate HR will change to that of creator of overall values and direction, and will be
implemented by local HR departments in different countries. Technology, especially the Internet, will enable
more businesses to enter the global marketplace. HR professionals will have advanced acumen in
international business practices, international labor laws, multicultural sensitivities and multiple languages.
HR professionals will need to be knowledgeable of other cultures, languages and business practices to
help their companies find and enter more markets. HR people will have to understand other cultures and
help people work with, and transfer among, various cultures. Mega global business alliances will grow in
number and scope, requiring great finesse on the part of the HR professional. There will be an explosive
growth of companies doing business across borders, and it will be the most significant change for the
economy in modern times. Cultural understanding and sensitivity will become much more important for the
HR professional of the future, whereas multiple language ability isn’t going to become a necessary
competency.

20
The continued emergence of a world marketplace will require development of an international workforce.
Small teams of HR professionals will focus on providing performance improvement consulting services
to a variety of locations around the world.

C) Work and Society

Family and life interests will play a more prevalent role in people’s lives and a greater factor in
people’s choices about work—there will be more of a "work to live" than a "live to work" mentality.
Employees will demand increases in workplace flexibility to pursue life interests.
Dual-career couples will refuse to make the sacrifices required today in their family lives and more people
(not just women) will opt out of traditional careers. Families will return to the center of society; work
will serve as a source of cultural connections and peripheral friendships. Workers will continue to struggle
with their need for work/ life balance, and it will get worse. Integration of work with quality-of-life
initiatives will create solutions to problems formerly seen as the responsibility of government.
Community involvement and social responsibility will become part of an organization’s business vision.
"Cocooning" will become more popular as workers look to their homes for refuge from the pressures of a
more competitive workplace and depersonalized society. Just as defined-contribution plans have begun to
take over from Social Security, companies will take on responsibility for elder care, long-term care and
other social needs through cafeteria-style benefits programs. Those people who refuse or are unable to adapt
to new technologies will find they’re working harder and accomplishing less.

D) Workforce Development

Lifelong learning will be a requirement. The focus of training/learning activities will be on performance
improvement and not just on skill building. Employees with varied skills and competencies will be
valued more highly than those with a depth of expertise in a single area. Problem solving and decision
making will become a required curriculum with practical work problems as the training medium.
Training will be delivered "just in time," wherever people need it, using a variety of technologies.
Companies will demand constant personal growth, and employees will respond positively to higher
expectations. It will not be possible to survive in the workplace without basic computer skills. People who
can learn new skills/competencies quickly will be highly valued in a faster changing world. Team projects
and special assignments will be a major factor in personal development. As the computer-savvy generation
is more assimilated into the workforce, employees will become much more productive in complex tasks and
less dependent on other people and departments.

21
E) Definition of Jobs

Organizations won’t pay for the value of the job but for the value of the person. Versatility will be the key
factor in determining employee value with strategic thinking, leadership, problem solving, technology and
people skills close behind. Compensation systems will be linked to business outcomes. All jobs will require
higher levels of computer skills. Positions will be organized in teams focused on a task, not organized
around a hierarchy. Positions will be defined by the competencies needed to be performed. Employees will
be more independent, moving from project to project within their organizations. Many jobs will be
redesigned to be much broader in scope, especially in management positions, resulting in leaner head counts.
Employees will be increasingly measured by how much value they contribute to the business, not by
whether they fulfilled predetermined objectives. Work will be more challenging, and jobs will become
increasingly complex.

F) Strategic Role of HR

Successful HR departments will focus on organizational performance. HR’s value will be to have the right
people ready at the right time: recruiting leaders to join the company’s mix of talent and keeping the "bench"
full of enabled, competent workers. The focus of the HR function will be human capital development and
organizational productivity; HR may be renamed to reflect this. HR will evolve from strategic business
partnership to strategic business leadership (driving change and results, not just monitoring them).
A key HR role in the future will be multidisciplinary consulting around individual, team, business unit and
corporate performance. Managers will grow to depend more and more on HR professionals as they realize
that good people management can be the strategic advantage in the next decade. Leading change will
become HR’s greatest contribution to the corporation. More and more businesses will use HR as a strategic
partner. HR will have a "seat at the table" as part of the top management team and report directly to the CEO
in most companies. A key HR role will be managing increasingly scarce human and intellectual capital.
Today success of every company is based on three key factors:
o Business-idea, i.e. the product or service which the company brings to market;
o Employees, i.e. the people who are able to produce and bring to market this product or
service;
o Motivation, in other words the desire of the employees to implement the business, produce
and promote the product or service in the market.

22
In summary, business is driven by people, i.e. like people, like business. The key target of every company
lies in attracting talents and then in retaining and motivating them for peak performance. Accordingly, the
essence and quality of personnel development have become today the key success factors. Apparently,
employees are no longer ordinary workforce; they are shaping themselves into the key competitive
advantage of the company. And poor work may disrupt business success. Summarizing the above
mentioned, the role of OB in the 21 century should dramatically change.
OB should focus on helping the top-management of the company to choose the best personnel strategy. The
goal of HR-management in the new reality is to strategically develop human resources which are the only
competitive advantage of the company, and professionally adjust them to the demands of modern business.
OB should create value for the company, and HR director should become the leader of “revenue center”. In
other words, HR specialist is becoming a business-partner of the leaders of the company. First of all HR
function should actively work to solve common issues for the organization and its workforce: building
project teams, developing group competences, managing information flows, strengthening corporate culture,
etc. – the issues which are aimed at achievement of the final objective of any organization: quality.
The future of OB is in development of its strategic importance. To be a strategic function
means:
• Participate in the development of the company’s market strategy and the rapid adaptation of the
organization to strategic games.
• Understand the business of the organization, including financial aspects.
• Contribute efficient issues on managing the company on the whole.

23
 7.8 Challenges and Opportunities for Organizational Behaviour

The free movement of goods, services, capital, ideas, and people across the borders has led to the emergence
of one-world economy. As the nations get integrated economically, any change in the economy of one
affects the rest of the world. In June 2001, Britain reported a slowdown in its industrial production and soon
Germany, Japan, and the US also reported a decline in the industrial production in their respective countries.
This was a result of the integration of economies across the world. On the contrary, organizations from
developing countries like China, India, and other parts of South-east Asia have begun to offer tough
competition to players from the developed world. Global competitiveness has thus become one of the
greatest challenges confronting the organizations in the new millennium. Another significant environmental
development is the advancement of information technology. The first generation of information age used
relatively simple automated data processing, whereas the second generation is characterized by advanced
electronic communications systems, decision making capabilities, and information super highway.

Electronic mails have speeded up the communication process and also widened the network. Managers are
able to take quick decisions using decision support systems. Internet enables organizations to access a wide
range of information about the government policies, competitors’ strategies, and the industry in general.
Yet another significant environmental challenge being faced by organizations is the revolution taking place
in the quality aspect of products and services. The quality of products and services to a great extent
determines an organization’s competitive position in the world market. While buying a product consumers
take into account the price, brand name, design, features, and technical innovation with quality of the
product being the top priority. Delivery of quality is especially important in the service sector where the
customer does not get any tangible product and his past experiences dictate his future purchase. Diversity
and ethics is yet another factor that has had a significant impact on organizations and management. Women
are becoming major part of workforce and people are no longer reluctant to take overseas assignments that
match their skills. A diverse workforce may also pose challenges to the management. The management has
to do away with all forms of discrimination (age, sex, race, ethnic origin, religion, disability) and provide
equal opportunity in terms of employment, compensation, and career advancement to all the people. They
also need to address other ethical issues at the workplace such as sexual harassment, work family
relationships, etc. In addition to the focus on aspects such as attitudes, group dynamics, and leadership,
special attention is needed on information technology, total quality, and diversity and ethics for the effective
application of OB in organizations.

24
Some of the challenges and opportunities for OB in the future are as follows:

A) Creation of Global Village

The world has been transformed into a global village as a result of fewer trade barriers between various
countries. Further, there is a free flow of factors of production like capital, labour, etc. As a result, managers
have to employ a workforce that is highly skilled and diversified with respect to culture, attitudes,
behaviour, etc. Managers should keep these diversities in mind and think of ways to deal with them. In fact,
OB helps them in synchronizing their management style with unknown and unfamiliar cultures. One of the
major challenges that managers in contemporary organizations face is dealing with workforce diversity.
Workforce diversity implies the heterogeneity of employees in an organization in terms of gender, race, and
ethnicity. A person who differs from the rest of the group in any form contributes to workforce diversity.
Traditionally, it was believed that irrespective of their backgrounds, employees automatically adapted or
adjusted to the organization they were associated with at some point of time. It was believed that employees
did not carry their cultural values and lifestyle preferences to the workplace. However, it is now believed
that employees do carry their culture to the workplace and that diversities in the workforce can have a
positive impact on organizational performance. Hence, managers need to change their uniform approach and
be more responsive to the differences in culture of the employees. For this, managers should be given
special training. In the event of a failure on the part of a manager to adapt to the changing environment, an
organization might experience high employee turnover, interpersonal conflicts, and ineffective
communication.

B) Improving Quality and Productivity

Organizations today are laying more and more emphasis on improving the quality and productivity of
organizational processes. Total Quality Management (TQM) and Re-engineering are two widely used
methods that help management in achieving this objective. The philosophy underlying TQM is continuous
improvement in all organizational processes. It encourages employees to rethink their actions and also
empowers them to participate in workplace decisions. Re-engineering on the other hand involves
redesigning the organization
from scratch to accommodate latest technological developments and other trends in management practices.
However, both the methods require the participation and co-operation of employees to achieve the desired
results. OB provides managers with some valuable insights that help them in planning and implementing
organizational changes.

25
 C) Improving People Skills
People skills found in employees such as communication skills, skills to delegate authority, and the ability to
build creative teams etc., help managers in enhancing their organizational performance. With the help of
OB, managers can help employees improve their people skills. OB helps employees to learn about their own
behaviour as well as that of others. It also provides useful insights that help employees modify their own as
well as others’ behaviour, thus improving their interpersonal skills and job performance. Management
Control to Empowerment. The superior-subordinate relationship in organizations is undergoing a sea
change. Earlier, managers were in charge of the work assigned to employees. Of late, however, managers
are assuming the roles of coaches, advisers, sponsors, and facilitators. Employees are increasingly being
given complete freedom in their work. Thus, by empowering employees -- i.e., by making them responsible
for their actions, managers ensure that the employees are responsible for their work. This has the effect of
making the employees more careful while taking decisions.

D) Stability to Flexibility
Previously, the structure and process of organizations remained constant for long periods and changes took
place occasionally. However, in the recent times, change has become a continuous process. Organizations
that constantly bring about changes in their processes and structure in tune with the needs of external
business environment are more successful. Employees are also required to continuously update their
knowledge and skills to cope with the changing business trends. Managers too need to react spontaneously
and should be flexible enough to adapt to the changing business conditions. They should also help
subordinates cope with and adapt to such organizational changes. OB helps managers to understand change
in a better way and in the long run, to shape the organizational culture.

E) Improving Ethical Behaviour

In the present scenario, organizations function in a fiercely competitive environment that forces them to set
stiff targets for their employees. As a result, employees are made to work in an environment of pressure.
This in turn makes it more tempting for them to resort to unfair practices to achieve their targets. The
employees’ superiors may also sometimes encourage them to follow unethical practices to accomplish the
tasks. In such cases, these employees face an ethical dilemma on whether to obey the orders of his/her
superior or report the matter to the top management. Although characteristics of ideal ethical behaviour are
not clearly defined, every organization must adopt a policy that ensures the employees at all levels follow
ethical practices in the organization.

26
 8. ORGA
ISATIO
AL BEHAVIOUR MODELS

OB models play a significant role in the management of an organization. Models are frameworks of
description of how things work and are also known as paradigms. Every model in OB makes certain
assumptions regarding the nature of the people working in the organization.

Models of OB not only differ from organization to organization but also from department to department
within an organization. The organizational practices are also largely dependent on a manager’s personal
preferences. Organizational behaviour can be based on several models viz. autocratic, collegial, supportive
or custodial. For the smooth functioning of an organization, it is important to assess each model and imbibe
the qualities of each in a desired function.

This is an intricate study of human behaviour as an individual, group and as a organization on the whole.
The behaviour of an individual as a group contributes in achieving team goals. A focus from each individual
is also essential for the organization’s continued success.
There are four major models of organizational behavior:
• Autocratic
• Custodial
• Supportive
• Collegial

27
8.1 The Autocratic Model
The autocratic model is based on power. Under this model, the person who holds power has the authority to
demand work from workers. This model was
widely popular during the Industrial
Revolution. It is based on the assumption that
work can only be extracted by means of
pushing, directing, and persuading the
employees.
The model empowers managers with authority
which might be used for unfair practices such
as suspending the employees for not obeying
the orders, giving low pay, etc. Such a work
environment motivates very few employees to
exhibit higher productivity. However, the
autocratic model works well under certain conditions, particularly in times of an organizational crisis. The
basis of this model is power with a managerial orientation of authority. The employees are oriented towards
obedience and dependence on the boss. The performance result is minimal. The autocratic model depends on
power. Those 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. In an autocratic environment the managerial
orientation is formal, official authority. This authority is delegated by right of command over the people to it
applies. Under autocratic environment the employee is obedience to a boss, not respect for a manager. The
psychological result for employees is dependence on their boss, whose power to hire, fire, and “perspire”
them is almost absolute.
The boss pays minimum wages because minimum performance is given by employees. They are willing to
give minimum performance-though sometimes reluctantly-because they must satisfy subsistence needs for
themselves and their families. Some employees give higher performance because of internal achievement
drives, because they personally like their boss, because the boss is “a natural-born leader,” or because of
some other factor; but most of them give only minimum performance.

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8.2 The Custodial Model
In the custodial model, the emphasis is laid on providing job security to the employees. It has been observed
that employees generally prefer jobs that promise job security. Therefore, employers offer fringe benefits to
strengthen the employee’s confidence in
job security. While this helps in retaining
the employees, knowing that they are
going to get incentives irrespective of their
job performance might cause the
employees to be more laid back in their
approach toward work. A successful
custodial approach depends on economic
resources. The resulting managerial
orientation is toward money to pay wages
and benefits. Since employees’ physical
needs are already reasonably met, the employer looks to security needs as a motivating force. If an
organization does not have the wealth to provide pensions and pay other benefits, it cannot follow a
custodial approach. The custodial approach leads to employee dependence on the organization. Rather than
being dependence on their boss for their weekly bread, employees now depend on organizations for their
security and welfare. Employees working in a custodial environment become psychologically preoccupied
with their economic rewards and benefits. As a result of their treatment, they are well maintained and
contended. However, contentment does not necessarily produce strong motivation; it may produce only
passive cooperation. The result tends to be those employees do not perform much more effectively than
under the old autocratic approach. The basis of this model is economic resources with a managerial
orientation of money. The employees in turn are oriented towards security and benefits and dependence on
the organization. The performance result is passive cooperation.

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8.3 The Supportive Model
The supportive model emphasizes leadership rather than power or money. Under this approach, leaders
promote an environment for the employees to grow while they help in achieving the organization’s
objectives. Also the support extended by the management motivates the employees to work. The employees
are self motivated to enhance their
performance and are not compelled to do
so. The model might not be effective for
employees whose lower level needs are not
satisfied. Nevertheless, the supportive
model enhances the relationships between
the employee and the employer. The
supportive model depends on leadership
instead of power or money. Through
leadership, management provides a climate
to help employees grow and accomplish in
the interests of the organization the things of which they are capable.
The leader assumes that workers are not by nature passive and resistant to organizational needs, but that they
are made so by an inadequately supportive climate at work. They will take responsibility, develop a drive to
contribute, and improve themselves if management will give them a chance. Management orientation,
therefore, is to support the employee’s job performance rather than to simply support employee benefit
payments as in the custodial approach.
Since management supports employees in their work, the psychological result is a feeling of participation
and task involvement in the organization. Employee may say “we” instead of “they” when referring to their
organization. Employees are more strongly motivated than by earlier models because of their status and
recognition needs are better met. Thus they have awakened drives for work.
The basis of this model is leadership with a managerial orientation of support. The employees in turn are
oriented towards job performance and participation. The performance result is awakened drives.

30
8.4 The Collegial Model
In the collegial model, employees are self-
disciplined, self-satisfied, and have specific
goals which motivate them to improve their
performance. In this approach, the superior
acts more like a leader who leads the way and
motivates employees that to perform at their
best. The term ‘collegial’ refers to a group of
persons working for a common purpose. This
approach is an extension of the supportive
model. The basis of this model is partnership
with a managerial orientation of teamwork.
The employees in turn are oriented towards responsible behaviour and self-discipline. The performance
result is moderate enthusiasm.

The collegial model depends on management’s building a feeling of partnership with employees. The result
is that employees feel needed and useful. They feel that managers are contributing also, so it is easy to
accept and respect their roles in their organization. Managers are seen as joint contributors rather than as
bosses. The managerial orientation is toward teamwork. Management is the coach that builds a better team.
The employee’s response to this situation is responsibility. For example employees produce quality work not
because management tells them to do so or because the inspector will catch them if they do not, but because
they feel inside themselves an obligation to provide others with high quality. They also feel an obligation to
uphold quality standards that will bring credit to their jobs and company.
The psychological result of the collegial approach for the employee is self-discipline. Feeling responsible,
employees discipline themselves for performance on the team in the same way that the members of a
football team discipline themselves to training standards and the rules of the game. In this kind of
environment employees normally feel some degree of fulfilment, worthwhile contribution, and self-
actualization, even though the amount may be modest in some situation. This self-actualization will lead to
moderate enthusiasm in performance.

31
 9. COMPA
Y PROFILES

9.1 The Adecco Group

The Adecco Group, based in Zurich, Switzerland, is the world’s leading provider of HR solutions. With over
28,000 employees and 5,700 offices, in more than 60 countries and territories around the world, Adecco
Group offers a wide variety of services, connecting more than 500,000 colleagues with over 100,000 clients
every day. The services offered fall into the broad categories of temporary staffing, permanent placement,
outsourcing, consulting and outplacement. The Adecco Group is a Fortune Global 500 company.
Adecco India, having headquarters in Bangalore, is a leading company with national presence with over 40
branches all over India, offering trust worthy services for past 11 years is a leader in staffing person
belonging to all industry at all levels. Their aim is to give everyone involved with Adecco the opportunity to
improve their situation, be it at work, at home, in leisure activities or in life. They are the world leader in
connecting people both globally and locally with the talent they need and the work that they want. They seek
those motivated to make change and know that, as partners they can help them to shape and achieve their
personal and professional goals.

People are the focus of their continued search for excellence in the provision of our principal offerings:
temporary staffing, permanent placement, secondment, outsourcing, outplacement, training and consulting.

Adecco India, arm of Adecco S.A., a Fortune Global 500 and the world’s largest HR Solutions Company,
has forayed into “Assessment Solutions” as part of its corporate strategy to expand its portfolio of value-
added services to its 2000 odd customer base. Leveraging on their end-to-end HR Solutions model of
“Assess-Prepare-Deploy”, the company has devised a series of assessment tools that will allow companies to
manage time, cost & quality concurrently by “developing predictable people management”

32
9.2 Shoppers Stop

Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of
department stores under the name “Shoppers’ Stop” in India. Currently Shoppers Stop has twenty seven (27)
stores across the country and three stores under the name Home Stop. Shoppers Stop has also begun
operating a number of speciality stores, namely Crossword Bookstores, Mother care, Brio, Desk Café,
Arcola.

Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel,
footwear, fashion jewellery, leather products, accessories and home products. These are complemented by
cafe, food, entertainment, personal care and various beauty related services.

Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails all
the products available at Shoppers Stop stores, including apparel, cosmetics and accessories. In April 2008,
Shoppers Stop changed its logo and adopted the mantra "Start Something New”. repositioned to bridge to
luxury segment and introduced international brands like CK Jeans, Tommy Hilfiger, FCUK, Mustang, Dior
across the stores. The focus of the reposition was on the service, ambience upgradation and customer
connect.

Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores
across the country. It has also invested in HyperCITY, a hypermarket which has been rated as amongst the
top 100 stores worldwide

With an immense amount of expertise and credibility, Shoppers’ Stop has become the highest benchmark for
the Indian retail industry. In fact, the company’s continuing expansion plans aim to help Shoppers’ Stop
meet the challenges of the retail industry in an even better manner than it does today.

33
9.3 ICICI Prudential
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost
financial services companies-and Prudential plc - a leading international financial services group
headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank
holding a stake of 74% and Prudential plc holding 26%. They began their operations in December 2000
after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, its nation-
wide reach includes 1,960 branches (inclusive of 1,096 micro-offices), over 237,000 advisors; and 6 banc
assurance partners. For three years in a row, ICICI Prudential has been voted as India's Most Trusted
Private Life Insurer, by The Economic Times - AC Nielsen ORG Margi survey of 'Most Trusted Brands'. As
they grow their distribution, product range and customer base, they continue to tirelessly uphold their
commitment to deliver world-class financial solutions to customers all over India. The ICICI Prudential
edge comes from their commitment to the customers, in all that they do - be it product development,
distribution, the sales process or servicing.
Here's a look into what makes them leaders:
1. Their products have been developed after a clear and thorough understanding of customers' needs. It is
this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's
education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you
retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease.
2. Having the right products is the first step, but it's equally important to ensure that their customers can
access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and
breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute their
products.
3. Robust risk management and underwriting practices form the core of their business. With clear guidelines
in place, they ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process.
4. Entrusted with helping their customers meet their long-term goals, they adopt an investment philosophy
that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, their team is given the opportunity to learn and grow, every day in a
multitude of ways. they believe this keeps them engaged and enthusiastic, so that they can deliver on our
promise to cover us, at every step in life.

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9.4 Tata Consultancy Services Limited
TCS is a software services and consulting company headquartered in Mumbai, India. TCS is the largest
provider of information technology and business process outsourcing services in India. The company is
listed on the National Stock Exchange and Bombay Stock Exchange of India. TCS is a subsidiary of one of
India’s largest and oldest conglomerates, the Tata Group, which has interests in areas such as energy,
telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and
healthcare. TCS understands that clients need to do more with less, respond quickly to the needs of their
markets and get more strategic advantage from IT. They are uniquely able to help clients solve these
business challenges. Whether it’s IT services, business solutions, or outsourcing, they can assure a level of
certainty that others can’t match.
TCS serves large and fast growing organizations who share a common set of objectives:
• Increase profitability and efficiency by doing more with less.
• Rapidly and effectively respond to changing market demands, thereby improving organizational
agility.
• Leverage IT as a strategic driver for competitive advantage, not just as a business utility
• TCS’ success and reputation is built on ensuring certainty of outcome for these client objectives.
TCS is uniquely able to deliver on this promise, primarily due to four strategic enablers:
• They deliver those offerings through the global network delivery model, their unique business model
for how they consistently deliver high-quality cost effective services all over the world. This model
has enabled them to achieve client satisfaction ratings of 89% for meeting quality expectations and
an average budget variation on projects of just 3% --both figures far better than industry norms.
• Finally, they help clients achieve and maintain competitive advantage through the use of our TCS
Innovation Labs and Co-Innovation Network, our collaborative R&D and innovation engine which
works to successfully exploit and commercialize new ideas, technologies and best practices.

35
 10. FI
DI
GS A
D THEIR A
ALYSIS
The purpose of the study was to examine what behavioral model an organization operates on.

Table 1 Summary of Organizational Behavior Survey Data:

Sr no Autocratic Custodial Supportive Collegial

1 16 20 13 18
2 13 17 17 15
3 19 16 17 20
4 14 20 20 19
5 18 17 11 14
6 10 19 13 15
7 12 11 15 17
8 22 18 16 20
9 14 16 12 14
10 9 14 17 17
11 18 15 19 18
12 17 19 12 11
13 12 19 13 14
14 11 17 15 16
15 23 18 11 20
16 20 22 9 19
17 17 20 17 16
18 18 13 19 15
19 20 18 24 10
20 19 19 17 12
21 16 18 8 13
22 18 14 11 17

36
 23 21 15 14 19
24 20 17 15 18
25 19 19 16 16
26 18 17 8 13
27 17 19 9 20
28 15 22 14 21
29 12 21 17 22
30 14 24 18 17
Total 492 534 437 496
Mean 16.4 17.8 14.56 16.5

Table 1 is the group data of 30 employees’ responses on the type of behavioral model their organization
operates on. It is based upon the theory that organizations generally operate out of the four modes i.e.
Autocratic, Custodial, Supportive or Collegial.

As we can see from table 1 the mean for the Custodial category is the highest i.e. 17.8. This indicates that
these are welfare companies that practice paternalism. The organization depends on economic resources to
meet the security needs of its employees which lead to dependence upon the organization.

After the custodial category the next highest mean is that for the Collegial behavioral model i.e. 16.5. This
indicates that the organization believes in team concept that depends upon the management building the
partnership with the employees.

The third highest mean is that of the Autocratic type of behavioral model. The mean is 16.4. This stage
depends on power; those in command have the power to demand. “You do this or else”, means that an
employee will obey or be penalized. The employee orientation is obedience towards the boss not respect.

And finally the lowest mean is that for the Supportive behavioral model i.e. 14.23. This approach depends
on leadership instead of power or money. Through leadership the organization helps the employee to grow
and accomplish things in the organization.

37
To confirm the accuracy of the survey, a chi-square test was performed using one of the custodial type of a
question from the 24 questionnaire. The analysis of the chi-square test using question number two asked to
the 30 employees from 4 different companies is as follows:

Q 2: Most employees do not leave this organization because it provides a lot of security.

Feedback
o. Of Employees

Almost never 2

Seldom 3

Occasionally 4

Frequently 10

Almost always 11

Chi-square test

OBSERVED EXPECTED (O-E)^2/E TOTAL

Feed back VALUE (O) VALUE (E)
16/6 2.66
ALMOST NEVER 2 6

3 6 9/6 1.5
SELDOM

4 6 4/6 0.67
OCCAASIONALLY

10 6 16/6 2.66
FREQUENTLY

11 6 25/6 4.16
ALMOST
ALWAYZ
30 11.66
TOTAL

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Chi-square=2.66+1.5+0.67+2.66+4.16
= 11.66

Chi-square calculated = 11.66

For Table value,
Degree of freedom = (5-1) = 4
Significance level = 5%
The table value for chi-square =9.49
Hence, chi-square calculated > chi-square table value
Therefore, the null hypothesis ( H0 ) is rejected and the alternate hypothesis (H1) is accepted
Hence it is proves the hypothesis:
H1: Custodial model is mostly followed by Indian companies.

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 11. RESULTS

From the above data it can be said that many of the employees believe that their organizations follow the
Custodial behavioral model followed by the Collegial, Autocratic and finally the Supportive model. It can be
seen that there is not much of difference between the means of Autocratic and Collegial behavioral models.
This indicates that the organizations are going through a period of Transition. Since the mean is the least for
the supportive model it indicates that many Indian organizations today do not operate on this model.

In the current Indian scenario the indication is that the organizations are going through a period of change or
transition i.e. they are coming out of the Autocratic model of behavior and moving towards a more flexible
approach like Collegial. But still organizations have not yet been able to give way to the supportive
behavioral model which basically helps the employee grow and move ahead with their future perspectives.
The Custodial approach being more prominent calls for change in the ways in which the organizations
generally function so that the employees are not dependent but infact committed to the organization.

Following points are observed in Indian companies with regards to OB:

• Trend toward supportive and collegial models will continue and more advanced models will have
growing use
• Top managers of giant, complex organizations cannot be authoritarian.
• There are contingent uses of all models as although one model may be used most, but other models
will also remain.

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 12. STRE
GTHS A
D LIMITATIO
S OF THE STUDY

Strengths of the study:

• The project report brings out a better understanding of the real essence of OB
• It clearly defines the various OB models and their implications for Indian companies
• Gives a better understanding of how an organisation grows to excellence through better human
behaviour
• Provides a proper roadmap for choosing the right OB model for employee and organisational
growth
• Study is based on data available in both public and private domain and also includes confidential
employee data of companies and hence is comprehensive.

Limitations of the study:

• Study is based on confidential data provided by a group of employees representing their company
and does not necessarily indicate the views of the company as a whole.
• Report does not include actual figures and results of systems / processes/ sub processes.
• As OB Models are dynamic and continuously evolving in nature, hence we cannot predict which
model is the best for Indian companies.
• Since this survey is a learning tool used in training programs such as leadership development,
rather than a research tool, it has not been formally checked for reliability or validity.

41
 13. SUMMARY & CO
CLUSIO

Although there are four separate models, almost no organization operates exclusively in one. There will
usually be a predominant one, (custodial in this case) with one or more areas over-lapping in the other
models.
The first model, autocratic, has its roots in the industrial revolution. The managers of this type of
organization operate out of McGregor's Theory X. The next three models begin to build on McGregor's
Theory Y. They have each evolved over a period of time and there is no one "best" model. The collegial
model should not be thought as the last or best model, but the beginning of a new model or paradigm.

Following are the limitations for each model:

AUTOCRATIC MODEL
• It is based on power and authority
• Is intensely disliked by many as it leads to tight control of employees
• Orientation is towards obedience to a boss
• Psychological result is dependence
• Useful for accomplishing work
• Principal weakness is high human cost

CUSTODIAL MODEL
• Designed to dispel employee insecurities, frustrations, and aggressions
•Success depends on economic resources
•Leads to dependence on the organization
•Employees become psychologically preoccupied with economic rewards and benefits
•Does not produce top productivity, motivation, or desire to grow

SUPPORTIVE MODEL
• Management orientation is to support the employee’s job performance
• Depends on leadership, not power or money but supportive behaviour does not require money
• Works well with both employees and managers
• Theory is difficult to put into practice
• Especially effective in affluent nations

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COLLEGIAL MODEL
• Embodies a team concept
• Most useful with unscripted work, intellectual environment, and considerable job freedom
• Depends on partnership between management and employees
• Managerial orientation is teamwork
• Psychological result is self-discipline
• Can produce moderate enthusiasm

As all the above four models have their limitations, it is thus concluded that:
• The current behavioural model followed by most Indian companies is not sufficient.
• There is a need to go for a new model for employee and organisational growth
• By establishing a proper structured OB model, the organisation can position itself effectively to
achieve success and performance improvement in the long run.

43
 14. RECOMME
DATIO
S
Since almost no organization operates exclusively in one model and every model has its own limitations, a
new emerging model of OB known as “Systems Model” is recommended for Indian companies as it
combines the benefits and eliminates the weaknesses of each of the four models.

The Systems Model

An emerging model of organization behaviour is the system model. It is the result of a strong search for
higher meaning at work by many of today’s employees; they want more than just a pay check and job
security from their jobs. Since they are being asked to spend many hours of their day at work, they want a
work context there that is ethical, infused with integrity and trust, and provides an opportunity to experience
a growing sense of community among co-workers. To accomplish this, managers must increasingly
demonstrate a sense of caring and compassion, being sensitive to the needs of a diverse workforce with
rapidly changing needs and complex personal and family needs. In response, many employees embrace the
goal of organizational effectiveness, and reorganize the mutuality of company-employee obligations in a
system viewpoint. They experience a sense of psychological ownership for the organization and its product
and services. They go beyond the self-discipline of the collegial approach until they reach a state of self-
motivation, in which they take responsibility for their own goals and actions. As a result, the employee
needs that are met are wide-ranging but often include the highest-order needs (e.g., social, status, esteem,
autonomy, and self actualization). Because it provides employees an opportunity to meet these needs
through their work as their work as well as understand the organization’s perspectives, this new model can

44
engender employees’ passion and commitment to organizational goals. They are inspired; they feel
important; they believe in the usefulness and viability of their system for the common good.

Features / benefits of the system model:

Through a systems approach organizational behaviour encompasses the relationship between the employees,
the community, and the organization. When an understanding of these elements is achieved the organization
can function in a manner that ensures that goals can be met effectively, and that individuals within the
organization will support positive outcomes in the future.
Following are some of the features / benefits of the system model:-
• Reflects positive organizational behaviour as motivation and retention become lesser issues
• Provides authenticity and social intelligence
• Management role will facilitating employee accomplishments hence people management will
disappear
• Employees experience psychological ownership and self-motivation
• Can facilitate passion and commitment to goals

45
 15. BIBLIOGRAPHY
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study work in the field. Personnel Psychology, 46, 525-549.

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transformational leadership and occupational safety. Journal of Applied Psychology, 87, 488-496.

• Bass, B.M. (1985). Leadership and performance beyond expectations. New York: Free Press.

• Bass, B.M. & Avolio, B.J. (1997). Full range leadership development. Palo Alto, CA: Mind Garden.

• Cacioppe, R. (1998). An integrated model and approach for the design of effective leadership

development programs. Leadership and Organizational Development Journal, 19, 44-54.

• Cunningham, J. B. & Eberle, T. (1990). "A Guide to Job Enrichment and Redesign," Personnel, Feb

1990, p.57 in Newstrom, J. & Davis, K. (1993). Organization Behavior: Human Behavior at Work.

New York: McGraw-Hill.

• Knoster, T., Villa, R., & Thousand, J. (2000). A framework for thinking about systems change. In R.

Villa & J. Thousand (Eds.), Restructuring for caring and effective education: Piecing the puzzle

together (pp. 93-128). Baltimore: Paul H. Brookes Publishing Co.

• Koch, C. (2006). The New Science of Change. CIO Magazine, Sep 15, 2006 (pp 54-56). Also

available on the web: http://www.cio.com/archive/091506/change.html

• Revans, R. W. (1982). The Origin and Growth of Action Learning. Hunt, England: Chatwell-Bratt.

• Schein, E. (1968). "Organizational Socialization and the Profession of Management," Industrial

Management Review, 1968 vol. 9 pp. 1-15 in Newstrom, J. & Davis, K. (1993). Organization

Behavior: Human Behavior at Work. New York: McGraw-Hill.

• Bareil, C., Savoie, A., & Meunier, S. (2007). Patterns of discomfort with organizational change.

Journal of Change Management, 7(1), 13-24.

• Ferdig, M. A. (2007). Sustainability leadership: Co-creating a sustainable future.

Journal of Change Management, 7(1), 25-35.

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• Fisher, J. M. (2005). A time for change? Human Resource Development International, 8(2), 257-263.

• Neves, P., & Caetano, A. (2006). Social exchange processes in organizational change: The roles of

trust and control. Journal of Change Management, 6(4), 351-364.

• Pearce, C. (2007). Ten steps to managing change. Nursing Management - UK, 13(10), 25-25.

• Polito, B. (2006). Organizational climate change via emotional intelligence skill set development

(EISSD). Dissertation Abstract from Alliant International University, San Diego, California.

Retrieved July 31, 2007 from Alliant International University online database

http://www.bethpolito.com/page9.html.

• Schein, E. (1990). Organizational culture. American Psychologist, 45, 109-119.

• Simonelic, K. (2006). Successfully managing and executing change. Journal of Business Forecasting,

25(3), 20-21.

• Sopow, E. (2006). The impact of culture and climate on change programs. Strategic Communication

Management, 10(6), 14-17.

• Srivastav, A. K. (2006). Organizational climate as a dependent variable. Journal Of Management

Research, 6(3), 125-136.

• Yemm, G. (2007). Encouraging successful change. Management Services, 51(1),40-43.

• "Adecco." Adecco. N.p., n.d. Web. 31 Jan. 2010. <http://adecco.co.in>.

• "Shoppers Stop: Shop for men & women" N.p., n.d. Web. 31 Jan. 2010. <http://shopperstop.com>.

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<http://tcs.com>.

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 16. A

EXURE : QUESTIO

AIRE
Objective: To identify what behavioural model your organization prefers to operate in.
Instructions: This questionnaire contains statements about the organization. Next to each question indicate
how rarely or often your organization displays each behaviour by using the following scoring system:

• Almost never - 1
• Seldom - 2
• Occasionally - 3
• Frequently - 4
• Almost always - 5

1. _____ Things get accomplished around here because employees fear for their jobs.
2. _____ Most employees do not leave this organization because it provides a lot of security.
3. _____ The managers display real leadership traits and are respected by the employees.
4. _____ There is a real feeling of teamwork.
5. _____ Only Management is allowed to make decisions.
6. _____ Although the employees are happy and contented, they give only passive cooperation.
7. _____ Both managers and employees want to create better job performance.
8. _____ There is a partnership between managers and employees.
9. _____ Although people obey their leader, they do not respect the leader.
10. _____ Management's main concern is to make money.
11. _____ The employees feel they are part of the organization.
12. _____ The employees feel a real responsibility to make things work.
13. _____ Most of the jobs are considered "minimum wage" jobs.
14. _____ The employees' main concern is for the security of their families and themselves.
15. _____ When things go wrong, the main concern is to fix it, not to lay blame.
16. _____ There is enthusiasm among the employees to better job performance.
17. _____ The employees' main concern is to provide for their families and themselves.
18. _____ Although the employees have good benefits, they tend to give only minimal performance.
19. _____ The employees feel they are recognized for their work.
20. _____ The employees feel their jobs hold high esteem and are of great value to the organization.
21. _____ Management does not expect the employees to give more than minimal performance.
22. _____ Most of the employees seem content to stay in their position.
23. _____ Employees are part of the decision making process.
24. _____ Things happen around here because of the self-discipline of every employee.

48
In the fill-in lines below, mark the score of each item on the questionnaire. For example, if you scored item
one with a 3 (Occasionally), then enter a 3 next to Item One. When you have entered all the scores for each
question, total each of the four columns.

Item Score Item Score Item Score Item Score

1. ________ 2. ________ 3. ________ 4. ________

5. ________ 6. ________ 7. ________ 8. ________

9. ________ 10. ________ 11. ________ 12. ________

13. _______ 14. ________ 15. ________ 16. ________

17. _______ 18. ________ 19. ________ 20. ________

21. _______ 22. ________ 23. ________ 24. ________

TOTAL TOTAL TOTAL TOTAL

____________ ___________ ___________ __________

Autocratic Custodial Supportive Collegial

• Autocratic - This stage depends on power, those in command have the power to demand. "You do
this or else," means that an employee will obey or be penalized. The employee orientation is
obedience towards the boss, not respect.
• Custodial - These are welfare companies that practice paternalism. The organization depends on
economic recourses to meet the security needs of its employees which leads to dependence upon the
organization.
• Supportive - This approach depends upon leadership instead of power or money. Through
leadership the organization helps the employee to grow and accomplish things in the organization.
• Collegial - This is a team concept that depends upon the management building a partnership with
employees.

49