2 Introduction to organisational behaviour

Neha Dangi

1. Learning objectives

2. Introduction

3. Nature of Organisational Behaviour

4. Fundamental Constituents of Organisational Behaviour

5. Assumptions of Organisational Behaviour

6. Contribution of various Disciplines to Organisational Behaviour

7. Importance of Organisational Behaviour

8. Procedure of Organisational Behaviour

9. Summary

1. Learning objectives:

The objectives of this module are:

To understand the concept of Organisation and Organisational Behaviour. To understand the nature of Organisational Behaviour.
To study the fundamental constituents and assumptions of Organisational Behaviour. To study the contribution of various disciplines to Organisational Behaviour.
To know the significance or importance of Organisational Behaviour To learn the process of Organisational Behaviour.

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2. Introduction

The nature of human beings is sociable and public or group life is one of the oldest and most persistent features of human survival on this planet. It is because of this natural liking for living and working together with others that there is predominance of a range of social groupings such as family, circles, community, friendship group, organisation, etc. Human beings are tied up together in a chain of fairly established social relationships. Therefore, it can be said that our society is organisational by means of a network of large and multidimensional organisations controlling every domain of human activity in almost all countries of the world. Thus, the study of organisations is an essential element of human life.

The two viewpoints which can be adopted for the study of organisations are micro and macro. The emphasis of micro perspective of organisational study is on the human beings and it is generally considered as the subject matter of Organisational Behaviour. On the other hand, macro perspective reflects organisation as a unit for analysis. It highlights the study of human behaviour as a group of people and is generally considered as the subject matter of Organisation Theory. It focuses on the structuring of an organisation, impact of technology on people in the organisation and interaction of an organisation with its environment.

Before studying the concept of organisational behaviour, it is necessary to understand meaning of the term organisation.

Meaning of Organisation

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It is very difficult to give a precise definition of the term organisation because of the non-standardized use of the term. The term organisation is used in two ways in the literature of management i.e. organisation as a process and organisation as a unit. Thus, it is accepted that a single definition cannot cover both the aspects. The term organisation, as a subject-matter of organisational analysis, can be described as a recognizable collection of human beings who are purposefully and wilfully formed for the achievement of various goals with balanced harmonization of closely related activities. The definitions of the term organisation as given by different authors are given below:-

i. According to Louis Allen, “Organisation is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”

ii. In the words of Oliver Sheldon, “Organisation is the process of combining the work which individuals or groups have to perform with the facilities necessary for its execution, that the duties so performed provide the best channels for the efficient, systematic, positive and coordinated application of available effort.”

iii. According to Spriegel,“In its broadest sense organisation refers to the relationship between the various factors present in a given endeavour. Factory organisation concerns itself primarily with the internal relationships within the factory such as responsibilities of personnel, arrangement and grouping of machines and material control. From the standpoint of the enterprise as a whole, organisation is the structural relationship between the various factors in the enterprise.”

After studying the meaning and definitions of the term organisation, let us proceed further to understand the concept of organisational behaviour.

Concept of Organisational Behaviour

Organisational behaviour (OB) is an area of study that examines the influence that individuals, groups, and structure have on behaviour inside organisations with the objective of spreading over such knowledge in order to improve an organisation’s effectiveness. The term Organisational behaviour is a combination of two terms ‘organisation + behaviour’. The term Organisation is concerned with a unit in which two or more persons work together for the achievement of an objective such as a company, a school, a club, etc. whereas the term behaviour emphasize on the movements and responses of an individual or a group in the direction of their activities e.g.an individual feels very happy and joyful on getting an important work in which there is an hidden opportunity for him.

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Thus, OB is mainly concerned with that characteristic of human behaviour which is significant for organisational performance. It does a study of human behaviour at individual level, group level and organisational level. In order to improve organisation’s effectiveness, organisational behaviour applies the knowledge learned about individuals, groups, and the effect of organisation structure and organisational culture on behaviour. Therefore, organisational behaviour is the behaviour of people while residing in the organisation.

Definitions of Organisational Behaviour

The main definitions of organisational behaviour are as follows:-

i. According to John W. Newstrom and Keith Davis, “Organisational behaviour is the study and application of knowledge about how people as individuals and as groups act within organisations. It strives to identify ways in which people can act more effectively.”

ii. In the words of Fred Luthans, “Behaviour is directly concerned with the understanding, prediction and control of human behaviour in organisations.”

iii. Stephen P. Robbins defines organisational behaviour as “a field of study that investigates the impact that individuals, groups and structures have on behaviour within organisations for the purpose of applying such knowledge toward improving an organisation’s effectiveness.”

iv. According to Durbin, “The study of organisational behaviour is a systematic attempt to understand the behaviour of people in organisations of which the people are an integral part.”

Thus, on the basis of the above definitions, it can be said that organisational behaviour clarifies the movements and responses of individuals and groups to the nearby stimuli as they interact with each other while performing their jobs.

3. Nature or Features of Organisational Behaviour

The following points describe the nature or features of organisational behaviour:-

A Field of Study and not a Discipline: Organisational behaviour can be considered as a separate area of study and not a discipline as a discipline is an accepted science with a theoretical establishment which is taken as the base for research and analysis. Organisational behaviour, on the other hand, because of its recent emergence and interdisciplinary alignment cannot be accepted as science. Therefore, it is realistic to call it a field of study rather than a discipline

Multi-disciplinary Approach: Organisational behaviour is a combination of various disciplines, their ideologies, theories and methods, models. The contribution of Psychology, Anthropology and Political Science is very valuable in the existing position of Organisational behaviour. Thus, Organisational behaviour is an incorporation of knowledge of various disciplines.

An Applied Discipline: Organisational behaviour makes use of application of various researches in order to solve the organisational problems which are related to human behaviour. There is regular research work regarding the employee’s perception, attitude, personality, learning, etc.

Thus, it can be said that organisational behaviour is an applied discipline.

Focus on Organisational Objectives: An organisation has various objectives and sometimes there rises a situation when organisational objectives are conflicting with individual objectives. Thus, Organisational behaviour tries to combine both types of objectives so that both can be achieved at the same time through the application of various behavioural approaches.

Subject to Change: Organisational behaviour is subject to change as human behaviour keeps on changing. The mind set of an individual keeps on changing. Therefore, new techniques to behave with the people have to be discovered so that the anticipated results can be achieved.

Concerned with Performance: Organisational behaviour helps in providing answers to various performance-related questions e.g. why the performance of an individual is high or low? How the performance can be improved? Is it feasible to improve the performance with the help of training?Thus, it has a relation with the performance in one way or the other.

A Fragment of Management: Organisational Behaviour is linked to the behaviour of an individual or group in the organisation. On the other hand, management is concerned with the achievement of organisational objectives. These objectives cannot be achieved without the help of human resources working in an organisation. Hence, a manager must have knowledge of organisational behaviour. Therefore, it can be stated that organisational behaviour is a significant and fundamental part of management.

Humanistic and Optimistic: Organisational Behaviour emphasize on people from humanistic point of view. It is highly concerned with the needs and motivation of people. It follows an optimistic approach about the inborn capability of man of being independent, creative, productive and skilful which are positive signs towards accomplishment of organisational objectives.

A Science as well as an Art: Organisational Behaviour studies the cause and effect relationship between the behaviour of individuals. Therefore, it is a science. On the other hand, it makes a study of the efforts which are involved in order to describe, foretell and regulate the behaviour of people. Thus, it is an art.

Global Application: The concept of organisational behaviour is applied globally in the whole universe. It is not only used in business organisations but also used in educational institutions, offices of government, public utility institutions, etc. Therefore, it is not restricted to only one sector rather it has a universal application.

4.Fundamental Constituents of Organisational Behaviour

Following are the fundamental constituents of organisational behaviour:

Individual: An individual plays a significant role in the establishment of an organisation. Thus, it is the essential constituent of organisational behaviour. The behaviour of individuals is studied in organisational behaviour by performing various studies for each category of individuals.

Group: In an organisation, people work as a unit which is often termed as a group. Hence, groups of human beings have a special dominance in organisational behaviour. Organisational behaviour studies the behaviour of a person as an individual and as a member of a group.

Job and Technology: Job may be defined as the total work which has been assigned to an individual at work place. Thus, there arises a need to be attentive regarding job. The behaviour of an individual is also affected by the techniques and equipment which have been provided for the completion of the job. They will show a positive behaviour if the technique and equipment are as per their choice. Hence, it can be said that both job and technology are the vital components of organisational behaviour.

Organisational Design: The relationships of people at work place are very much subjective to the organisation design. The creation of organisation design is directly linked with the nature of job. A suitable organisation design should be formed keeping in mind a particular situation. It becomes easier to regulate the behaviour of employees if the organisation design proves to be active.

Environment: Every organisation is a part of society and different parts of the society such as family, government, social groupings, and communities together form environment. These factors of environment have an influence on the behaviour of individuals and this influence is studied with the help of organisational behaviour.

5. Fundamental Concepts or Assumptions of Organisational Behaviour

The various basic concepts or assumptions of organisational behaviour are as follows:-

Variations between Individuals: One person varies with the other person in one way or the other. Whether it is physique, intelligence, personality or any other characteristic, one can find many variations. Therefore, each person is unique and different. It is because of these variations or differences between individuals that organisational behaviour always starts with an individual. Without individuals, there will be no groups. Thus, only an individual can bear responsibilities and can make decisions.

A Complete Individual: With the appointment of an individual there come along with his/her skills, his/her likings and disliking, social background, arrogance and preconception. The family life of an individual cannot be detached from his/ her work life. Therefore, managers always try to make the work place a home away from home.

Prompted Behaviour: An employee has a prompt behaviour. Their behaviour is not random. For example, if an employee opposes his boss, there is some reason behind it. Therefore, a manager should always keep in mind the factors behind the behaviour of employees while dealing with them.

Self-respect of Human Beings: Human beings should always be treated with dignity as they are not animals. They will not bear any damage to their self-respect. Therefore, a manager should always treat employees as human-beings and not merely an economic tool.

Organisation is a Social System: Organisational behaviour takes organisation as a social system.

The term ‘social’ refers to units which have a link with society. On the other hand, the term ‘system’ means a unit having different parts. Organisation is described as a system because it is formed by human beings who have a link with each other either in a formal or informal way.

Common or Mutual Interest: In every organisation, there are two parties one is employees and the other is organisation. Both of them need each other. It means they both have some common or mutual interest. The employees, on one hand, cannot achieve their objectives in the absence of organisation and organisation, on the other hand, cannot accomplish its objectives without the help of employees. Therefore, both the parties should work together to achieve the objectives and making an organisation successful.

Holistic Concept: Organisational behaviour can be regarded as a holistic concept when the six fundamental concepts as discussed above are combined together. This concept takes relationship between human beings and organisation as a complete individual, a complete group, a complete organisation and a complete social system. Organisational behaviour examines the behaviour of individuals and factors influencing their behaviour in terms of a particular situation rather than in terms of an unapproachable consequence or problem.

6. Contribution of Various Disciplines to Organisational Behaviour

Source: Robbins & Judge, 15e, 2013, p. 13

Organisational behaviour is multidisciplinary and is an applied science related to human behaviour. The contribution of various behavioural disciplines to organisational behaviour is explained as under:-

Psychology: The contribution of psychology is worth noting in organisational behaviour. The objective of psychology is to study, forecast and monitor the behaviour of human beings and animals. The concepts of psychology which are applicable to organisational behaviour are perception, emotions, personality, leadership, motivation, values, learning, attitudes and job satisfaction. Psychology is helpful in providing knowledge of individual behaviour and interpersonal behaviour.

Sociology: There has been significant contribution of sociology to organisational behaviour. The study of human beings in groups is being done in sociology. The contribution of sociology to organisational behaviour comprises of group dynamics, organisation theory, team work, organisation design, communication, organisation change, power and politics and intergroup conflict and behaviour.

Social Psychology: Social psychology is a combination of psychology and certain notions of sociology. Its contribution to organisational behaviour consists of attitude change, communication, group process and group decision-making.

Anthropology: The studies of society for the purpose of understanding the human beings and their activities are being carried out in Anthropology. The contribution made by Anthropology to organisational behaviour include cross culture, comparative values, comparative attitudes, organisational culture and organisational environment.

Political Science: The study of predicting and managing the individual behaviour and group behaviour in the political environment is being done in Political Science. Its major contributions to organisational behaviour contain structuring conflict, allocation of power and political behaviour.

Technology: The application of knowledge is known as technology. Technology has a direct impact on the human behaviour as it influences job designs, relationship between employees, machinery, organisational structure and working styles of employees. The role and contribution of technology to organisational behaviour comprise perception, work environment, communication and team work. Information technology has also made outstanding contribution to organisational behaviour which includes team dynamics, decision-making, communication and knowledge management.

Management: Management is the art of getting things done through people. The contribution of management to organisational behaviour include decision-making, communication, leadership, organisational structure, motivation, predicting behavioural requirements of organisational strategies and managing the behaviour towards strategic requirements.

Economics: Economics is defined as a science which carries out the study of human behaviour as relationship between ends and scarce means having alternative uses. Its contribution to organisational behaviour includes motivation, decision-making and learning.

Hence, it can be said that various disciplines have given their significant contributions to organisational behaviour.

7. Significance or Importance of Organisational Behaviour

The significance or importance of organisational behaviour is highlighted by the following points:-

Understanding, forecasting and monitoring Human Behaviour: The success of an organisation depends on proper management of human beings working in the organisation. It becomes easier to manage these human beings if there is proper understanding of their behaviour. Also, the job of forecasting the reaction of employees comes under the purview of organisational behaviour. After understanding the behaviour and forecasting the reactions to the decisions the last step is to monitor and regulate the behaviour of employees. Thus, organisational behaviour plays a significant role in understanding, forecasting and monitoring human behaviour.

Optimum Utilisation of Resources: Factors of production such as men, material, machines and capital are very scarce in any organisation. For the successful working of any organisation, there arises the need to make optimum utilisation of scarce resources. Organisational behaviour helps the managers in this task by understanding, forecasting and monitoring human behaviour. By doing so, everything gets under control and organisation will run smoothly. Thus, Organisational behaviour helps in optimum utilisation of resources.

Unrestrained Application of Changes: Change is the law of nature. Often, human beings resist change. Therefore, organisational behaviour communicates employees working in the organisation about the advantages related with the changes to be introduced from time to time. Hence, they are prepared mentally and whenever a change is to be applied they will accept it without any opposition.

Building Foundation for Human Resource Management: Appointment of staff, formulation of policies for employees, conducting personnel research, etc. are the activities which are having a link with human beings. Human resource management is considered to be a part of management and in order to undertake these activities in a proper manner, there should be complete knowledge of human behaviour. Organisational behaviour provides all the information in context of human beings. Hence, it can be said that Organisational behaviour lays the foundation of human resource management.

Forming Harmonious Industrial Relations: Industrial relations may be defined as the relations between the owners and their employees. Organisational behaviour lays down the base for the formation of harmonious or friendly industrial relations. The relations will be good if both the parties are satisfied. Organisational behaviour helps in proper understanding of human behaviour so that their problems can be solved timely by the owners. Thus, the success of an organisation depends on the formation of cordial industrial relations.

RisingPerformance: Organisational behaviour helps in determining various factors which direct employee’s behaviour and lead to their satisfaction. The success of employees is directly linked with the level of their performance. If the level is rising success rate will be higher and vice-versa. Thus, Organisational behaviour plays a dominant role in raising the performance level of employees.

Inculcating Human Skills: Organisational behaviour helps in inculcating human skills as many management specialists and researchers are involved in researches from years to give shape and form to organisational behaviour. Thus, what we find it today is because of good human skills possessed by eminent researchers.

Bettering Organisational Effectiveness: Organisational behaviour aims at providing better results by monitoring individual and group behaviour. When there are good results at individual and at group level it will automatically lead to making an organisation effective.

8. Procedure of Organisational Behaviour

The steps involved in the procedure of organisational behaviour are as follows:

Investigating Behaviour: The first and the foremost step is investigation of the behaviour of employees at the individual level, group level and organisational level. Firstly, at individual level, various characteristics of behaviour such as learning, perception, confidence, motivation, etc. are examined. Secondly, at group level various features such as conflict, communication, group dynamics, power, leadership, etc. are analysed. Finally, at the level of organisation, organisational culture, values, ethics, change, etc. are studied.

Knowing Behaviour: After a careful investigation of the behaviour of employees at three levels the next step is to have a thorough knowledge of the behaviour of employees. It means having an understanding of the factors which have an influence on the behaviour of individuals. For example, if the financial condition of an employee is weak then monetary incentives will be a motivating factor. Thus, on the basis of proper knowledge of behaviour division of work should be done among employees.

Forecasting Behaviour: After having an understanding of the behaviour of employees the next step is to make a prediction or forecast of their behaviour i.e. establishing a cause and effect relationship on the basis of main factors governing behaviour such as team spirit, enthusiasm, dedication, etc.

Regulating Behaviour: Until now, it is clear how an employee will behave in a particular situation. Therefore, the next step is to regulate and monitor the hostile behaviour of employees. A list of factors should be prepared which can lead to an opposing behaviour of employees and these factors should be timely controlled.

Organisational Effectiveness: The main objective of organisational behaviour is to make an organisation effective. Therefore, at this step, there is an analysis of organisational effectiveness which means to examine the effectiveness of the activities done under organisational behaviour up to now. It is checked whether these activities have been successfully done or not.

Response: The final stage in the process of organisational behaviour is getting response or feedback. At this stage, the actual results are compared with the objectives and the information about deviations is acquired. By taking this information as base, the procedure of organisational behaviour is started once again.

9. Summary

To sum up, it can be said that Organisational Behaviour is the study of human behaviour in organisational settings. It is a multidisciplinary subject and includes principles and concepts from psychology, sociology, anthropology, social psychology, political science, etc. The basic fundamentals of organisational behaviour are interpersonal differences, whole person concept, human dignity, and instigated behaviour, mutuality of interest, social systems and holistic concept.

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References:

Organisational Behaviour by P.Subba Rao, published by Himalaya Publishing House.
Organisational Behaviour by R.K. Singla, published by V.K. Global Publications.
Organisational Behaviour by L.M. Prasad, published by Sultan Chand & Sons.
Organisational Behaviour by Stephen P. Robbins, published by Prentice-Hall India.
Organisational Behaviour by K Ashwathappa, published by Himalaya Publishing House.
Organisational Behaviour by Shashi K Gupta and Rosy Joshi, published by Kalyani Publishers.
Management Concepts and Organisational Behaviour by N.K.Sahni, published by Kalyani Publishers.
Organizational Behaviour- an evidence based approach by Fred Luthans, published by McGraw Hill Education, 12th Edition.
Organisational behaviour-foundation, realities and challenges by Debra L. Nelson and James Campbell Quick, Published by South-Western Cengage Learning, 5th Edition.
www.investopedia.com/terms/o/organizational-behavior.asp
https://www.tutorialspoint.com/organizational_behavior/organizational_behavior_introduction.ht m
https://en.wikipedia.org/wiki/Organizational_behavior