Unit 4-Organizational Behaviour-I and Individual & Interpersonal Behaviour (Part-1)

 

Part 1- Organizational Behaviour-I

Concept of Organizational Behaviour (OB)

Organizational behavior is a study and application of knowledge about human behaviour, as in individuals and groups, in organizations strives to identify ways in which people act more effectively.

It is set of tools that allow people to understand, analyze and describe behavior in the organization which helps the managers to improve and enhance or change work behaviours so that the individual, group and whole organization can achieve their goals.

The discipline of Organizational Behaviour has fundamental concepts revolving round the nature of people and the nature of the organization. There are four concepts dealing with the nature of individual which are:

1.   Individual differences: In spite of all the human beings, everyone is different. Everyone has a different gift of the nature; different quality of intelligence, different perception and the different ways of behaviour. The concept tells that every person is an entity in him. When it comes to human behaviour there cannot be a prescriptive solution. Every individual is to be treated differently even though two persons may have the same behavioural problems. The concept also tells the manager that he had better be aware of his own stereo types. A stereotype is a tendency to attribute the traits of a group to an individual because he belongs to the said group. Unfortunately one is not aware as to how these stereotypes influence his behaviour. This concept, therefore, not only tells that a manager should treat every person as an entity in himself but he should also examine his own stereotypes.

 

2.  Whole person: In the olden days employees were referred to as ‘hands’, implying that the organization hires only the hands of man. An organization hires not only the hands of an employee but hires a complete man with all his pluses and minuses. At the same since a person performs many roles at the same time the happenings in one role are bound to affect the behaviour in others roles of the person. The concept tells the manager than when it comes to behavioural problems, he must also take into account the other roles of the person. If the whole person is to be developed then only the benefits will extend beyond the organization to the entire society, in which the employee lives.

 

3.  Caused behavior (Motivation): The concept reminds the manager of the law, expressed by Newton that every action has an equal and opposite reaction. This means the manager, by his own behaviour, can cause an employee behave in a particular way. If he is respectful to his employees they are bound to be respectful to him not otherwise.

 

4.    Human dignity: This concept is of a different order from the other three because it is more an ethical philosophy than a scientific conclusion. It confirms that people are to be treated differently from other factors of production. Because they are of a higher order, they want to be treated with respect and dignity. When everyone, the employee, the manager, the CEO etc of an organization are engaged in the same pursuit. The concept tells that very person should be respected simply because he happens to be an employee just as the manager is. 

Nature of Organizational Behavior

With regard to the nature of organization behavior, the key assumptions are that the social systems and that they are formed on the basis of mutual interests of the employees.

 

Organisation is a social system: All the employees comprising organizations are the members of the society from which they come. Thus the organization becomes a social system, where the value systems customs etc. conform to those of the society at large. Any organization that has inconsistent value system with the external society does not last long. That an organization is a social system also implies that the organizational environment is not static. All parts of the organizational system are interdependent and are subject to influence by other parts of the organization as well the society at large.

 

Mutually of interests: Organizations have a human purpose. They are formed and maintained on the basis of some mutuality of interests among the participants. Organizations help people achieve their own personal objectives at the same time people help organizations achieve its objectives. It is a symbiotic relation. Everybody must bear in mind that the organizational and employees interests are intertwined in such a way that if the interests of one suffer the interests of another do suffer. Both the employees and organization can prosper if they help each other to prosper.

 

Importance of Organizational behavior

1.        Responding to globalization

2.        Managing work force diversity

3.        Improving quality and productivity

4.        Responding to the labour shortage

5.        Improving customer service

6.        Improving people skills

7.        Empowering people

8.        Stimulating innovation and change

9.        Helping employees balance work/ life conflicts

10.     Improving ethical behavior

 

Organisational Behaviour Models

Keith Davis recognizes four different models of OB. These models show the evolution of the thinking and behaviour on the part of management and managers alike. These models also denote the responses of the employees to the various orientations of the managers and the general behavioural climate prevailing in the manager-employee relationship. In terms of the evolution of OB thought these models are autocratic, custodial, supportive/participative and collegial.

 

·   The Autocratic Model was very much in existence at the time of industrial revolution and sometime after. These are, one may easily notice, the assumptions of the Theory X in their darkest color. With the passage of the time the autocratic model as well as the assumptions of the Theory X has become diluted.

 

·   Subsequently because of the changes in the thinking of the industrialists and the managers we find the Custodial Model of O.B. It consisted in giving some sops/offers, concessions or economic privileges to the employees to keep them happy. Actually there is no basic behavioural difference between the autocratic and the custodial model. In both these models managers did not bother to create an atmosphere which would be conducive to the development of the employees. The question of motivating, guiding and developing the employees did not arise.

 

·   The change in managerial orientation can be perceived when we study the Supportive/ Participative Model. The supportive model emerged as a sequel to the human relations era. While the managerial behaviour, in the autocratic model is based on the assumptions of theory X; the participative model is based on the assumptions of theory Y. This theory assumes that the employees have the skill and the will to contribute to the organisational efforts. It came to be recognized that a manager is not the boss but a leader of the team of employees entrusted to him. Leader, as such, it was his responsibility to create an environment where the skills and the wills of the employees to contribute to the organizational effort are supported.

 

·   The fourth model i.e. Collegial Model has a limited application, in as much as, it is useful when one is dealing with the “Scientific and Professional’’ employees. The manager’s role is changed from that of a leader to that of a partner. The employees and the manager are the partners in the pursuit of the same objectives. Whatever the work, it is to be done as a team where the lines between the manager and the employee are obliterated.

 

Table: Models along with their various facets

Model type	Autocratic	Custodial	Supportive	Collegial
Model depends on	Power	Economic resources	Leadership	Partnership
Managerial orientation	Authority	Money	Support	Teamwork
Employee orientation	Obedience	Security	Job Performance	Responsibility
Employee psychological result depends on	Boss	Organisation	participation	self-discipline
Employee needs met	Subsistence	Maintenance	Higher-order	Self-actualisation
Performance result	Minimum	Passive cooperation	Awakened drives	Moderate enthusiasm

 

Challenges and Opportunities

The challenges and opportunities of organisational behaviour could be understood through the following areas:

1.  Understanding Global Organisational Behaviour: Globalisation reflects abusiness 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 this implementation. Keeping these changes in mind the challenges are to understand global organisational behaviour. The issues include:

o    The creation of a global village

o    Work force diversity

o    Improving quality and productivity to match global standards

o    Improving people skills

o    Moving towards employee empowerment

o    Improving ethical behaviour

o    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.

 

3.    Movement of jobs to countries with low cost labour: In a global economy, jobs tend to flow to places where lower costs of labour provide business firms with a comparative advantage. Jobs are moving from 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.

 

4.   Workforce Diversity: While globalisation focuses on differences between people form 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.