Organizational Behaviour

Concept Of Organisational
Behaviour
Organizational Behavior (OB) can be defined as the

understanding, prediction and management of human
behavior both individually or in a group that occur within
an organization.
Internal and external perspectives are the two theories

of how organizational behavior can be viewed from an
organization’s point of view. In this tutorial, we will be
learning in detail about both the theories.
Importance of OB
While working in an organization, it is very important to
understand others behavior as well as make others
understand ours. In order to maintain a healthy working
environment, we need to adapt to the environment and
understand the goals we need to achieve. This can be
done easily if we understand the importance of OB.
Following points bring out the importance of OB:
° It helps in explaining the interpersonal relationships

employees share with each other as well as with their
higher and lower subordinates.
° The prediction of individual behavior can be explained.
° It balances the cordial relationship in an enterprise by
maintaining effective communication.
° It assists in marketing.
° It helps managers to encourage their sub-ordinates.
°Any change within the organization can be made easier.
° helps in predicting human behavior & their application
to achieve organizational goals.
° It helps in making the organization more effective.
° Thus studying organizational behavior helps in
recognizing the patterns of human behavior and in turn
throw light on how these patterns profoundly influence
the performance of an organization.
There are three major factors that affect OB. The working
environment being the base for all three factors, they are
also known as the determinants of OB. The three
determinants are:
People
Structure
Technology
People:
An organization consists of people with different traits,
personality, skills, qualities, interests, background,
beliefs, values and intelligence. In order to maintain a
healthy environment, all the employees should be
treated equally and be judged according to their work
and other aspects that affects the firm.
Example: A company offers campus placement to

trainees from different states like Orissa, Haryana,
Arunachal Pradesh and many more. However, during and
after training, all trainees are examined only on the basis
of their performance in the tasks assigned.
Organizational Structure:
Structure is the layout design of an organization. It is the
construction and arrangement of relationships, strategies
according to the organizational goal.
Example: Organizational structure defines the relation of

a manager with employees and co-workers.
Technology:
Technology can be defined as the implementation of
scientific knowledge for practical usage. It also provides
the resources required by the people that affect their
work and task performance in the right direction.
Example: Introduction of SAP, big data and other

software in the market determines individual and
organizational performance.
Environment
All companies function within a given internal and
external environment. Internal environment can be
defined as the conditions, factors, and elements within
an enterprise that influences the activities, choices made
by the firm, and especially the behavior of the
employees. While external environment can be defined
as outside factors that affect the company’s ability to
operate. Some of them can be manipulated by the
company’s marketing, while others require the company
to make adjustments.
Some examples of internal environment include

employee morale, culture changes, financial changes or
issues, and some examples of external environment
include political factors, changes to the economy and the
company itself.
The concept of OB is based on two key elements namely:
Nature of people
Nature of the organization
Nature of People
In simple words, nature of people is the basic qualities of
a person, or the character that personifies an individual
they can be similar or unique. Talking at the
organizational level, some major factors affecting the
nature of people have been highlighted. They are:
Individual Difference: It is the managerial approach

towards each employee individually, that is one-on-one
approach and not the statistical approach, that is,
avoidance of single rule. Example: Manager should not
be biased towards any particular employee rather should
treat them equally and try not to judge anyone on any
other factor apart from their work.
Perception: It is a unique ability to observe, listen and
conclude something. It is believing in our senses. In short,
the way we interpret things and have our point of view is
our perception. Example: Aman thinks late night parties
spoil youth while Anamika thinks late night parties are a
way of making new friends. Here we see both Aman and
Anamika have different perception about the same thing.
A whole person: As we all know that a person’s skill or
brain cannot be employed we have to employee a whole
person. Skill comes from background and knowledge.
Challenges Of OB
1. Global Organisational Behaviour:

Globalization reflects business orientation based on
the belief that the world is becoming more
homogeneous and that distinctions between
national markets are not only fading, but, for some
products will eventually disappear. International
firms have found it necessary to institute formal
global strategic planning to provide a means for top
management to identify opportunities and threats
from all over the world, formulate strategies to
handle them and stipulate how to finance the
strategies of these implementation. Keeping these
changes in mind the challenges are to understand
global Organisational Behaviour.
The issues include:
. The creation of a global village

. Work force diversity
. Improving quality and productivity to match global
standards
. Improving people skills
. Moving towards employee empowerment
. Improving ethical Behaviour
. Multiculturalism and diversity.
2.Working with people from different cultures:

To work effectively with people from different cultures,
you need to understand how their culture and religion
have shaped them and how they will respond to
particular styles in management. What motivates people
from one culture may not be appealing for people form
another culture and this makes the work of a manager
more challenging.
Movement of jobs to countries with low cost labor: In a
global economy, jobs tend to flow to places where lower
costs of labor provide business firms with a comparative
advantage. Jobs are moving from U.S.A and U.K and
other developed countries to developing countries like
India and China. This is a threat to managers from
developed counties while it is an opportunity for
developing countries especially like India for we have a
talented people with good knowledge of the English
language.
3.Workforce Diversity:
While globalization focuses on differences between
people from different countries, workforce diversity
addresses differences among people within a given
country. Workforce diversity means that organisations
are becoming more heterogeneous in terms of gender,
age race etc.
Process Theories of Motivation
Motivation can be described as the internal force that

impacts the direction, intensity, and endurance of a
person’s voluntary choice of behavior. It consists of:
Direction: Focused by goals.
Intensity: Bulk of effort allocated.
Persistence: Amount of time taken for the effort to be
exerted.
Example: A team leader encourages team members to
work efficiently.
Features of Motivation
Motivation is an internal feeling, that is, it defines the
psychological state of a person. It is a continuous process
and we should make sure that it is not disturbed. A
person should be encouraged completely.
Motivation consists of three interacting and dependent
elements:
Needs: The requirements or deficiency which is created

whenever there is physiological imbalance.
Drives: The various camps or events organized to

motivate the employees and give them new
opportunities
Incentives: Employees need to be rewarded for their nice

work in order to keep them encouraged.
Importance of Motivation:
We need to motivate employees because of the
following reasons:
- Motivated employee are more quality oriented.

- Highly motivated employees are more productive as
compared to other employees.
- It helps in achieving three behavior dimension of
human resource namely.
(a) Candidates must be attracted not only to join but

also remain in the firm.
(b) Employees must perform task in a dependable
manner.
(c) Employees should be creative, spontaneous and
innovative at work.
Maslow’s Hierarchy of Needs Theory
This theory was produced in order to answer the

question “What motivates an individual”. Every second
need comes to force when the first need is satisfied
completely. Maslow explained the hierarchy of needs by
grouping them into two: deficiency needs and growth
needs.
Physiological Needs:
Every individual needs to take care of the basic
requirements required to sustain. These requirements
include food to eat, clothing to wear and shelter to live
in. These necessities are relatively independent of each
other but are finite.
Safety Needs:
Everybody wants to stay in a protected environment with
minimal danger so that they can have a peaceful life.
Safety needs basically includes protection from
physiological danger like accident and having economic
security like bank accounts, health insurance
In an enterprise, it includes job security, salary
increment, etc. The managerial practice to satisfy this
involves offering pension scheme, provident fund,
gratuity etc.
Social Needs:
We have all heard that man is a social animal, we want to
be there with those people where we are loved and we
are accepted as we are; nobody wants to be judged. This
is a common requirement every human desires.
This theory helps managers to think about encouraging
their employees by identifying employee needs. In short,
it presents motivation as constantly changing force,
expressing itself to the constant need for fulfilment of
new and higher levels of needs.
Esteem:
Esteem means the typical human desire to be accepted
and valued by others. People often involve in a
profession or hobby to gain recognition, earn fame and
respect. According to Maslow, the needs of humans have
strict guidelines – the hierarchies rather than being
sharply separated, are interrelated. This means that
esteem and the consequent levels are not strictly
separated but are closely related.
Self-Actualization:
Self-actualization means realizing one’s full potential.
Maslow describes this as a desire to complete everything
that one can, to become the most that one can be.

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Concept Of Organisational

Organizational Behavior (OB) can be defined as the

Internal and external perspectives are the two theories

° It helps in explaining the interpersonal relationships

Example: A company offers campus placement to

Example: Organizational structure defines the relation of

Example: Introduction of SAP, big data and other

Some examples of internal environment include

The concept of OB is based on two key elements namely:

Individual Difference: It is the managerial approach

1. Global Organisational Behaviour:

The issues include:

. The creation of a global village

2.Working with people from different cultures:

Motivation can be described as the internal force that

Needs: The requirements or deficiency which is created

Drives: The various camps or events organized to

Incentives: Employees need to be rewarded for their nice

- Motivated employee are more quality oriented.

(a) Candidates must be attracted not only to join but

Maslow’s Hierarchy of Needs Theory

This theory was produced in order to answer the

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