Unit 1-Introducation to organization Behavior.ppt

Unit 1-Introducation to organization Behavior

1. Organization Behavior & Human
Resource Management
1–1

2. Organization Behavior &
Human Resource Management
1–2
FY BBA-CA Semester II
CBCS Pattern 2019
Course Code 201
Credit 3
Subject Teacher- Prof. Sarika
Khandekar
External Evaluation
25% MCQ
35% short Notes
40% long answers
•Internal Evaluations:
One project Report: 5 Marks
One Assignment: 5 marks
One case study report: 5 marks.
Internal Examination -15 marks

3. Introduction To Introduction To Organizational
Behavior and HRM


ChapterChapter
11

4. Learning Objectives
1.Explain what organizational behavior means.
2.Summarize the research methods of organizational
behavior.
3.Identify the potential advantages of organizational behavior
knowledge.
4.Explain key events in the history of organizational
behavior.
5.Describe how focusing on the human element can
contribute to organizational and managerial effectiveness.
6.Understand how a person develops organizational skills.

5. The Meaning of Organizational Behavior
1–
Organizational behavior (OB) is
–the study of human behavior in the workplace,
–the interaction between people and the organization,
–and the organization itself.
Organizational behavior’s major goals are to
–explain, predict, and control behavior.

6. Organizational Behavior definition
1–6
“Organisational behaviour is a field of study that investigates the impact
that individuals, groups and structure have on behaviour within the
organizations for the purpose of applying such knowledge toward
improving an organization’s effectiveness.”—Stephens P. Robbins.
“Organisational behaviour is directly concerned with the understanding,
production and control of human behaviour in organisations.”—Fred
Luthans
“Organisational behaviour is the study and application of knowledge about
how people act within an organisation. It is a human tool for human
benefit. It applies broadly to the behaviour of people in all types of
organisation.”— Newstrom and Davis.

7. Organizational Behavior
1–7
OB is a field of study that investigates the impact that individuals,
groups, and structure have on behavior within an organization.
OB focuses on improving productivity, reducing absenteeism and
turnover, and increasing employee job satisfaction and
organizational commitment.
Organizational behavior or organizational behaviour is the: "study
of human behavior in organizational settings, the interface
between human behavior and the organization, and the
organization itself"
OB uses systematic study to improve predictions of behaviour.

8. Benefits of Studying Organizational Behavior
Develop skills to function effectively in the workplace.
Grow personally through insight into human behavior.
Enhance overall organizational effectiveness
Sharpen and refine
common sense.

9. OB Models


OB Models
Autocratic
Model
Custodial Model
Supportive
Model
Collegial Model

10. OB Models
1) Autocratic Model:
This model depends on power Those who are in command have power to demand.
Main features of the Autocratic Model are:
In this model we can find that this model relies on power. For example, managers
have the ability, authority to control their employees and the employee’s
performance in this stage will be much lower than expected.
Short notes of this model:
1. Depends on power
2. Managerial orientation is authority
3. Employee orientation is obedience
4. Employee psychological result depends on boss
5. Employee needs met is subsistence
6. Performance result is minimum
Example: Defense team, because here officer hold power and authority
to obey them and thus soldiers are obedient to execute officer’s order.

11. 1) Autocratic Model:
1–11
MERITS;
a) Authority is delegated by the right of command over people to whom
it applies
b) Supervision is very close to obtain the required performance
c) It is quite useful way to accomplish performance where the
employees are motivated by physiological needs.
DEMERITS:
a) There is no interaction between employee and manager
b) Communication is one way
c) Highly dependence on boss
d) Human cost is very high

12. OB Models
2) Custodial model:
This model usually depends on economic resources (money). For instance, managers can
simulate their employees by offering them facilities, and benefits, but in this model the
employee’s won’t work as a team (Less sharing with others) because everyone will depend on
hi s
self to get more benefits than the others.
Short notes of this model:
1. Depends on economical resource
2. Managerial orientation is money
3. Employee orientation is security and benefit
4. Employee psychological result depends on organization
5. Employee needs met is security
6. Performance result is passive cooperation
Example: Garments factory, because here it is based on economical resource. Here labors
execute their job for security and benefit, again here if an organization do well then employee
get better benefit

13. 2) Custodial model:
1–13
MERITS:
a) It is based on the economic resource of the organization
rather than the personal obedience of the boss
b) Managerial orientation is to pay for employees benefits.
DEMERITS:
a) Unwillingness to do the right performance.
b) This models only emphasis on material rewards and
dependence on organization.

14. OB Models
3) Supportive model:
This model relies on leadership. For example, managers support their employees by
encouraging, and supporting them to perform a better job, get along with each other
and as well as developing their skills. The Performance results will be awakened drives.
Short notes of this model:
1. Depends on leadership
2. Managerial orientation is support
3. Employee orientation is job and performance
4. Employee psychological result is participation
5. Employee needs met is status and recognition
6. Performance result is awakened drives
Example: Software firm, because here leaders support there employee to perform their
tasks or their project.

15. 3) Supportive model:
1–15
MERITS:
a)It helps the employees to grow and help the organization which
they are capable of
b)This model helps in solving the problems of employees in
achieving work.
c)The employee feel participation and work involvement in the
organization.
DEMERITS:
This model is less developed b’cos there employees need
structure are often at a lower level and their social conditions are
different.

16. OB Models
4)Collegial model:
This model means that employees depend on each other cooperatively and work as a team to
do the task. Everyone will be having a normal enthusiasm self-discipline, and responsible
behavior towards their tasks.
Short notes of this model:
1. Depends on partnership
2. Managerial orientation is teamwork
3. Employee orientation is responsible behavior
4. Employee psychological result is self discipline
5. Employee needs met is self actualization
6. Performance result is moderate enthusiasm
Example: Social organization such as willingly blood donation organization BADHON,
because here every one work as teamwork and each member takes responsibilities for
organizational goal. Each member works here only for self actualization.

17. 4)Collegial model:
1–17
MERITS:
a)Employees feel responsible and give quality work to the
organization
b)According to this model there is considerable job freedom
c)Employees feel self disciplined and self actualization which motivate
their performance
d)This model is used for mostly un programmed work
DEMERITS:
a)This model is used less b’cos the rigid work environment made it
difficult to develop
b)In this model b’cos of partnership with employee ,employees feel
needed and useful.

18. OB Models
5)System model:
This model is based on trust, self-motivation, and the performance results will be more than
expected, because employees will be committed to do their tasks as expected, and as well as
organizational goals.
After we explained the models in brief we would like to inform you that the world nowadays
requires from us necessary steps before we decide the best model to have for an each
organization. One of the most important things to consider is that managers and leaders
should clearly understand the nature of their organizations before making any decision.
Also, they have to consider and look at the changing in the environment and of course the
employee’s needs so that they can have the best model to use to get a better result.
Short notes of this model:
1. Depends on trust, community, understanding
2. Managerial orientation is caring, compassion
3. Employee orientation is psychological ownership
4. Employee psychological result is self motivation
5. Employee needs met is wide range
6. Performance result is passion, commitment, organization goal
Example: Some corporate firm which are based on trust or community Where employees are
self motivated and committed for organizational goals.

19. OB Models
Autocratic custodial Supportive CollegialSystem
Basis of
Model
Power Economical
Resource
Leadership Partnership Trust, Community
Understanding
Managerial
Orientation
Authority Money Support Teamwork Caring comparison
Employee
orientation
Obedience Security & BenefitJob and PerformanceResponsible
Behaviour
Psychological Ownership
Employee
Psychological
Result
Depends on Boss Depends on
Organization
Partnership Self DisciplineSelf Motivation
Employee
Needs met
Subsistence Security Status & RecognitionSelf ActualizationWide Range
Performance
result
Minimum Passive Co operationAwakened Drives Moderate
Enthusiasm
Passion,Commitment,Or
ganizational goals
Example Defense team Garments Factory Software firmSocial OrganizationSome Corporate firms

20. Importance of Organizational Behavior

It builds better relationship by achieving people, organizational,
and social objectives.
It covers a wide array of human resource like behavior, training
and development, change management, leadership, teams etc.
It brings coordination which is the essence of management.
It improves goodwill of the organization.
It helps to achieve objectives quickly.
It makes optimum utilization of resources.

21. Importance of Organizational Behavior
It facilitates motivation.
It leads to higher efficiency.
It improves relations in the organization.
It is multidisciplinary, in the sense that applies
different techniques, methods, and theories to evaluate
the performances

22. Major Trends In OB
1–22
Total Quality Management (TQM): An organisational cultural
commitment to satisfying customers through the use of an integral system
of tools, techniques, and training
Total Quality Management in the field of Organizational Behavior focuses
on continuous improvement and quality of production and delivery. 
Global competition has forced companies to become even more customer
focused. Consumers want a high-quality product to satisfy their needs.
Most companies have adopted a TQM (Total Quality
Management) approach to their organizational structure and
production.
This philosophy means that the company is focused on delivering
continuous improvement and quality in production and delivery of
product to the consumer.

23. Total Quality Management (TQM):
1–23
Total quality management is significant to organizational behavior
in that it permeates every area of employee performance.
 A company that produces a high-quality product every time must
have every area of the staff working towards the end result.
Employees must have the ability to respond to customer needs
quickly in order to keep improving quality.
For example, Cheapo Toys has adapted quality as part of their
overall culture.

24. What is cultural diversity?
1–24
Culture is what shapes us, it is the reason we have certain beliefs,
influences how we behave and is what gives us our identity. Cultural
diversity is the representation of different cultural and ethnic groups in
society.
When talking about cultural diversity in the workplace, it is the
inclusion of employees from different backgrounds, different races,
different sexual orientations and different political views.
The term cultural diversity encourages an environment of inclusion,
with representatives from a range of various backgrounds that come
together to work as a team.
It’s easy to talk about the theory and definitions of cultural diversity,
but when it comes to creating that within an organization, it very much
depends on the practices used during the hiring process.

25. In HR terms, there are a few primary types of diversity characteristics to
bear in mind
1–25
Gender 
– women make up a bigger percentage of the workforce than ever before. But there
is still a gap in terms of fair pay and the percentage of women in leadership roles.
Race and ethnicity 
– as ethnic and racial identities evolve, standardized forms with ethnic
groups fail to hit the mark. By opening the conversation with employees and candidates on
race and ethnicity, this goes a step towards improving cultural diversity.
Age 
– both younger and older workers can be discriminated against in terms of
preconceptions. Through steps like opening apprenticeships to all ages and providing cross-
generation mentoring programmers, these prejudices can be addressed.
Workers with disabilities 
– disabilities can cover many differences, from the ability to
form social relationships to physical disabilities. Part of this can be helped with a
neurodiversity programme, as well as fighting against negative perceptions.
Mental health 
– focusing on mental health along with workplace wellness support can
combat a variety of issues, from absenteeism to behavioural problems.
Neurodiversity 
– recognising and providing a supportive environment for those with
neurological differences that include dyslexia, autism and Tourette’s helps organisations to
celebrate differences and the benefits they can offer in well-matched job types.
Thought style 
– different personalities and thought styles can enhance creativity if the
individual and the role are well matched. In contrast, it can cause stress if ill-matched.

26. Six benefits of cultural diversity in the workplace
1–26
1. Cultural diversity helps develop and maximise skillsets:  
A culturally diverse workplace empowers people to develop their talents
and skills. A range of ideas and expertise enables those to learn from a
more diverse collection of colleagues.
2. Cultural diversity improves the recruitment process
Surveys show that two-thirds of candidates cite diversity as an important
consideration during a job hunt.
By developing a strategy for cultural diversity, you can broaden your
appeal to prospective employees, and reach out to more high-level
candidates across the globe.

27. Six benefits of cultural diversity in the workplace
1–27
3. Cultural diversity can help you to retain talent  
Aside from attracting a broader talent pool in the first place, cultural diversity
is the key to building the ideologies of respect between company and
employee, and cooperation. In turn, this makes you a more attractive
proposition to valuable candidates making you stand out in the marketplace.
4. Cultural diversity improves your teams creativity
A more diverse workforce allows you to bring new ways of thinking into the
business that can be applied in many different ways. By listening to each
employee's voice and way of thinking, a company will no longer be pigeon-
holed in one direction.
A company that actively encourages diversity in the workplace will see more
perspectives being discussed and more solutions being thought of than ever
before. This can inspire employees to perform to the highest of their abilities.

28. Six benefits of cultural diversity in the workplace
1–28
5. Cultural diversity can help increase employee engagement
Employees who engage with others about their background during lunches or out of hours
drinks will feel better connected to a company, feel truly listened to and in turn engage
further with their colleagues and the business.
Employee engagement helps build trust, starting from the very top and moving all the way
down throughout the company. Engagement is always positive for the company, it can lead to
greater motivation, collaboration and loyalty.
6. Cultural diversity will improve your company’s reputation
A company that employs people from all different types of cultures and backgrounds will be
considered a good employer. This reputation amongst employees will elevate a company’s
standing and attract more people to come and work there.
Your company’s reputation amongst its customers is one of the most important things.
Customer service and reputation can be greatly improved through a diverse workforce, with
different employees being able to assist customers in a more personal way thanks to shared
experiences and understanding.

29. Examples of cultural diversity at work
1–29
Johnson & Johnson
Top of the list in a few guides on the subject. Johnson & Johnson bring a
true company-wide approach to cultural diversity. From using technology to
eliminate gender bias, to training interviewers to recognize and combat bias
during the hiring process. 
Google
With 4,000 languages available to users, Google brings a real-world solution
to a global audience. This has been the driving force behind the company’s
success. Their motto is inspiring, “never judge a search engine by its
interface".
Kellogg’s
Ranked number 21 on DiversityInc’s 2019 list, Kellogg’s has more women
in leadership roles than the national average. A third more. And they
promote benefits such as longer maternity pay.  

30. Organizational Change.
1–30
Organisational change refers to the process of growth, decline and
transformation within the organization.
Organizational change is a business necessity. Employees leave, and
new employees are hired, new teams and departments are created as
the company grows, and businesses adopt new technology to stay
ahead of the curve.
With effective organizational change management, you can keep the
business running smoothly during the transition.
For example, offering training options helps employees learn new
technology faster. That way, they fully adopt the technology, and the
organizational change isn’t bogged down by support tickets and
frustrated users

31. Organizational change
1–31
Organizational change is the movement of an organization from
one state of affairs to another.
Organizational change can take many forms. It may involve a change
in a company’s structure, strategy, policies, procedures, technology,
or culture.
The change may be planned years in advance or may be forced upon
an organization because of a shift in the environment.
Organizational change can be radical and alter the way an organization
operates, or it may be incremental and slowly change the way things
are done.
In any case, regardless of the type, change involves letting go of the
old ways in which work is done and adjusting to the new ways.

32. Organizational Change.
1–32
Organizational change can be defined as the alteration in structure,
technology or people in an organization or behavior by an organization.
Here we need to note that change in organizational culture is different
from change in an organization. A new method or style or new rule is
implemented here.
An organizational change occurs due to two major factors namely
External factor − External factors are those factors that are present
outside the firm but force the firm to change or implement a new law,
rule etc. For example, all banks are bound to follow the rules laid down
by the RBI.
Internal factor − Internal factors are those factors that are caused or
introduced inside an organization that forces a change. For example, no
smoking in the workplace.

33. Organizational Change.
1–33
Organizational changes are of two types:
1. Reactive Changes (On this spot)
Reactive changes occur when forces compel organization to
implement change without delay. In other words, when demands
made by the forces are compiled in a passive manner, such a
change is called reactive change.
2. Proactive changes (planned changes). occur when some
factors make realize organization think over and finally decide that
implementation of a particular change is necessary. Then, the
change is introduced in a planned manner.

34. Stress Management
Definition: In HRM, Stress is defined as a state of mental and
emotional pressure or strain, caused by challenging or
unfavorable circumstances. It is an outside force that rules an
individual’s feelings and behaviour.
34

35. Sources of Stress
1. Individual-level stressors: Stressors which are associated directly
with an individual’s personality and job responsibility.
Personality type: How a person experience stress depends largely on the
type of personality he/she possesses. There are two types of personality,
which are Type A and Type B.
Role overload: Excess workload cause, increased pressure and tension in
employees, that ultimately results in stress.
Role Conflict: In an organisation, role conflict occurs where people
experience competing demands. It can be an inter-role conflict which is
caused when an employee has two opposing roles and personal role
conflict, occurs due to the differences between personal values and
organisational goals.
35

36. Sources of Stress
Role ambiguity: When the employees are unaware of their
responsibilities, authorities, powers, functions and performance
expectations, it is known as role ambiguity.
Task Characteristics: The characteristics of tasks also causes
individuals to face stress, especially when it involves activities like
decision-making, information exchange and monitoring work.
2. Group level Stressors: The stress resulting from group
dynamics and managerial behaviour are covered under this category. It
can be due to the following reasons:
Lack of cohesiveness
Managerial Behavior
Workplace violence
Intragroup conflict
Sexual Harassment
Status Incongruence
36

37. Sources of Stress
3.Organisational level Stressors: These stressors influence
almost all the employees working in the organisation.
Organisational climate: If the environment of the organisation
puts excessive pressure of work on employees, causes high stress to
employees.
Organisational structure: The structure of organisation explain
the level of authority and rules and regulations where decisions are
taken. If in an organisational design the rules are more and the
participation is less, then also the structure of the organisation
works as a stressor to employees.
37

38. Sources of Stress
Organisational leadership: Managerial style plays a crucial role in
the development of employees. If there is a culture of the organisation
to create tension, fear or anxiety, or work for long hours to complete
the delegated work in a short time, otherwise they will be fired, will
create unrealistic pressure on the employees.
Organisational Lifecycle: As everything has a life cycle,
organisations too passes through various stages of life, i.e. birth,
growth, policy, procedure, theory, religion, ritual and last rites. The
early phases of the life of the organisation are exciting while the latter
ones are stress-prone.
38

39. 39

40. Sources of Stress
4. Environmental Factors
Finally, there are environmental sources of stress. The economy
may be in a downturn, creating uncertainty for job futures and
bank accounts. There may be political unrest or change creating
stress. Finally, technology can cause stress, as new
developments are constantly making employee skills obsolete,
and workers fear they’ll be replaced by a machine that can do
the same. Employee are also often expected to stay connected to
the workplace 24/7 because technology allows it
40

41. Work Life Balance
Work Life Balance is defined as a means of flexible working or
flexible leave available to employees. These arrangements may
be in addition to statutory entitlements and are generally
granted to the employee to accommodate their needs outside of
the workplace.
Work life balance also describes the relationship between your
work and the commitments in the rest of your life, and how
they impact on one another.
41

42. Work Life Balance
Work life balance is a method which helps employees of an
organization to balance their personal and professional lives.
Work life balance encourages employees to divide their time
on the basis on priorities and maintain a balance by devoting
time to family, health, vacations etc. along with making a
career, business travel etc.
It is an important concept in the world of business as it helps
to motivate the employees and increases their loyalty
towards the company.
1–42

43. Work Life Balance
43

44. Benefits of work life balance
1. Work life balance increases the motivation of employees
and helps them perform better at job
2. It helps people to relieve their stress as they can spend
leisure time with their near and dear ones
3. Companies can maximize productivity from an employee
who is rejuvenated and refreshed as compared to a over
worked employee
4. Healthy lifestyles can be maintained by having a work life
balance. This includes a good diet, regular exercises etc.
5. Employees who are highly motivated can help the business
grow as they are more attached to their job and careers.
1–44

45. Work Life Balance
5 Steps to improve work life balance
1. Creating a work leisure plan
2. Leaving out activities that waste time and energy
3. Outsourcing and Delegating work
4. Set enough time for relaxation
5. Prioritizing work
1–45

46. Work life Balance Examples
These days many companies and people prioritize work life
balance. Some of the examples through which this is
happening is Work from Home, flexible work timings,
sufficient leaves for vacation and family care. Also sabbatical
leaves are offered these days. 
Another example is offering people option to move in a
different career path which aligns more with the skills and
aspirations.
1–46

47. Quality of work life 
Quality of work life is a process (QWL) of work organisations
which enables its members at all levels to participate actively
and efficiently in shaping the organisation’s environment,
methods and outcomes.
Quality of Work-Life is a value based process, which is aimed
towards meeting the twin goals of enhanced effectiveness of the
organisation and improved quality of life at work for the
employees.”
1–47

48. 6 Ways To Achieve An Excellent Quality Of
Work Life
1. Job Satisfaction: The term
 
"job satisfaction" 
refers to how satisfied an
employee is at his/her organization. Factors such as working environment,
people at work, job security, and work responsibilities majorly impact an
individual's job dissatisfaction levels.
2. Workplace Stress: Stress is a silent killer. This is especially true for most
working individuals. With the added pressure to manage their work-life,
employees feel extreme levels of stress. Not only does it impact their physical
health, but it affects their emotional wellbeing as well.
According to
 
stress.org, workplace stress is a result of the following factors:
Workload contributes to the primary reason for stress at almost
 
46%
People Issues comes second at
 
28%
Work-life balance (20%)
Lack of job security (6%)
1–48

49. 6 Ways To Achieve An Excellent Quality Of
Work Life
3. Financial Reimbursement
The purpose behind any work is to get a substantial income in
return.Rewards, pay, and benefits enhance organizational
QWL. With better compensation, employees are more involved in
their work. Unless the company provides extrinsic
motivation (in the form of better financial gain), workers will less
likely go beyond the job requirements.
4. Work-Life Balance
Rigid work schedules are a big no for the current millennial
workforce. The modern worker wants to balance his life at work
with his personal life. That means more remote working and more
flexible work hours.
1–49

50. 6 Ways To Achieve An Excellent Quality Of
Work Life
5. Working Conditions / Job Environment
Businesses need to understand the value of a pleasant
working environment for enhanced organizational
effectiveness. The job environment affects life at work,
mood, performance, and motivation.
6.Comfortable Working Environment
Make an effort to provide relaxing working conditions by
providing comfy chairs, indoor plants, break rooms, and
office snacks. Make the workplace an enjoyable and fun place
to be.
1–50

51. Principles of Quality of Work Life
The Principle of Security: Quality of work cannot be improved until
employees are relieved of the anxiety, fear and loss of future employment.
The working conditions must be safe and fear of economic want should be
eliminated. Job security and safety against occupational hazards is an
essential precondition of humanization of work.
The Principle of Equity: There should be a direct and positive relation
between effort and reward. All types of discrimination between people
doing similar work and with same level of performance must be eliminated.
Equity also requires sharing the profits of the organization.
The Principle of individualism: Employees differ in terms of their
attitudes, skills, potentials etc. Therefore, every individual should be
provided the opportunities for development of his personality and potential.
Humanization of work requires that employees are able to decide their own
pace of activities and design of work operations.
The Principle of Democracy: This means greater
 authority and
responsibility
 to employees. Meaningful participation in decision making
process
 improves the quality of work life.
1–51