Keith Davis and John Newstrom (1985) has defined O.B. as "the study and application of knowledge how people act or behave within organization. It is a human tool for human benefit. It applies broadly to the behaviour of people in all types of organizations such as business, government, schools and service organizations."

In the opinion of Robbins, "O.B. is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations for the purpose of applying such knowledge towards improving an organization's effectiveness".

The above definitions are comprehensive ones as these contain all characteristics of O.B. In brief, what O.B. studies are three determinants of behaviour in organizations individuals, groups and structure.

Organizational behaviour in the words of Keith Davis may be defined as - "Organizational behaviour is the study and application of knowledge about human behaviour in organizations as it relates to other system elements, such as structure, technology and the external social system.

To sum up, O.B. is concerned with the study of how and what people act in organizations and also how their acts affect the performance of the organization. It also applies the knowledge gained about individuals, groups and the effect of structure on human behaviour in order to make organizations work more effectively.

Organizational behavior is a field of study that investigates the impact that individuals, groups and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization's effectiveness.

An organization is a collection of people who work together to achieve a wide variety of goals, both goals of the various individuals in the organization and goals of the organization as a whole. Organizations exist to provide goods and services that people want. These goods and services are the products of the behaviors of workers.

Organizational behavior is the study of the many factors that have an impact on how individuals and groups respond to and act in organizations and how organizations manage their environments. Although many people assume that understanding human behavior in organizations is intuitive, many commonly held beliefs about behavior in organizations, such as the idea that a "happy worker is a productive worker," are either entirely false or true only in specific situations. The study of organizational behavior provides a set of tools—concepts and theories—that help people understand, analyze and describe what goes on in organizations and why. How do the characteristics of individuals, groups, work situations and the organization itself affect how members feel about their organization?

The ability to use the tools of organizational behavior to understand behavior in organizations is one reason for studying this subject. A second reason is to learn how to apply these concepts, theories and techniques to improve behavior in organizations so that individuals, groups and organizations can achieve their goals. Managers are challenged to find new ways to motivate and coordinate employees to ensure that their goals are aligned with organizational goals.

Organizational Behavior addresses following points:

• Organizational behavior studies the factors that impact individual and group behavior in organizations and how organizations manage their environments. Organizational behavior provides a set of tools—theories and concepts—to understand, analyze, describe and manage attitudes and behavior in organizations.

• The study of organizational behavior can improve and change individual, group and organizational behavior to attain individual, group and organizational goals.

• Organizational behavior can be analyzed at three levels: the individual, the group and the organization as a whole. A full understanding must include an examination of behavioral factors at each level.

• A manager's job is to use the tools of organizational behavior to increase effectiveness, an organization's ability to achieve its goal. Management is the process of planning, organizing, leading and controlling an organization's human, financial, material and other resources to increase its effectiveness.

Organizational behaviour has emerged as a separate field of study. The nature it has acquired is identified as follows:

1. A Separate Field of Study and not a Discipline Only

By definition, a discipline is an accepted science that is based on a theoretical foundation. But, O.B. has a multi-interdisciplinary orientation and is, thus, not based on a specific theoretical background. Therefore, it is better reasonable to call O.B. a separate field of study rather than a discipline only.

2. An Interdisciplinary Approach

Organizational behaviour is essentially an interdisciplinary approach to study human behaviour at work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology, sociology and anthropology to make them applicable for studying and analysing organizational behaviour.

3. An Applied Science

The very nature of O.B. is applied. What O.B. basically does is the application of various researches to solve the organizational problems related to human behaviour. The basic line of difference between pure science and O.B. is that while the former concentrates of fundamental researches, the latter concentrates on applied researches. O.B. involves both applied research and its application in organizational analysis. Hence, O.B. can be called both science as well as art.

4. A Normative Science

Organizational Behaviour is a normative science also. While the positive science discusses only cause effect relationship, O.B. prescribes how the findings of applied researches can be applied to socially accepted organizational goals. Thus, O.B. deals with what is accepted by individuals and society engaged in an organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is normative as well that is well underscored by the proliferation of management theories.

5. A Humanistic and Optimistic Approach

Organizational Behaviour applies humanistic approach towards people working in the organization. It, deals with the thinking and feeling of human beings. O.B. is based on the belief that people have an innate desire to be independent, creative and productive. It also realizes that people working in the organization can and will actualize these potentials if they are given proper conditions and environment. Environment affects performance or workers working in an organization.

6. A Total System Approach

The system approach is one that integrates all the variables, affecting organizational functioning. The systems approach has been developed by the behavioural scientists to analyse human behaviour in view of his/her socio-psychological framework. Man's socio-psychological framework makes man a complex one and the systems approach tries to study his/her complexity and find solution to it.

The main objective of Organizational Behavior is to understand the human interactions in an organization, find what is driving it and influence it for getting better results in attaining business goals.

The organizations in which people work affect their thoughts, feelings, and actions. These thoughts, feelings, and actions, in turn, affect the organization itself.

Organizational behavior studies the mechanisms governing these interactions, seeking to identify and foster behaviors conducive to the survival and effectiveness of the organization.

Organization behavior’s objective is to set up an organizational culture, hiring the best people and creating meaningful connections among them, resolving the conflicts, developing the qualities of the employees, and establish a firm and clear leadership chain.

Organizational behavior studies the mechanisms governing these interactions, seeking to identify and foster behaviors conducive to the survival and effectiveness of the organization.

Organization behavior’s objective is to set up an organizational culture, hiring the best people and creating meaningful connections among them, resolving the conflicts, developing the qualities of the employees, and establish a firm and clear leadership chain.

We have identified 8 objectives of organizational behavior;

1. Job Satisfaction

2. Finding the Right People

3. Organizational Culture

4. Leadership and Conflict Resolution

5. Understanding the Employees Better

6. Understand how to Develop Good Leaders

7. Develop a Good Team

8. Higher Productivity

1. Job Satisfaction

Understanding organizational behavior can shed light on the factors that can foster or hamper job satisfaction, such as physical settings, organizational rewards and punishments or work-group characteristics.

Job satisfaction, in turn, can foster higher productivity and reduced turnover, while providing more leverage for the recruitment of top talent.

2. Finding the Right People

A ship with all sails and no anchors would flounder, one with all anchors and no sails would not get anywhere.

Organizational behavior can help find the right mix of talents and working styles required for the achievement of the task at hand.

This can assist in deciding who to include in a team or task force, as well as in deciding who to promote to a leadership position or even the ideal profile for new hires.

3. Organizational Culture

As organizations grow larger, it may become difficult to keep a sense of common purpose and unity of direction.

Organizational behavior is useful for understanding and designing the communication channels and leadership structures that can reinforce organizational culture.

As rapidly evolving business environments force organizations to adapt, entering, for example, into global markets or utilizing virtual workforce, organizational behavior can assist in maintaining a clear identity without losing flexibility and adaptability.

4. Leadership and Conflict Resolution

Playing by the book and not making waves may be fine for some organizations, but the command-and-control mentality of the manufacturing age may become counterproductive in the knowledge market.

Organizational behavior can assist in fostering leadership, pro-activity and creative problem-solving.

When creativity is allowed, the divergence of opinions is unavoidable, but organizational behavior can provide the leadership and the arbitrage dynamics required for turning conflicts into constructive idea exchanges.

5. Understanding the Employees Better

Organizational behavior studies help us understand why employees behave the way they do, and also thereby predict how they are going to behave m the future.

6. Understand how to Develop Good Leaders

Organizational behavior patterns help in predicting who among the employees have the potential to become leaders.

They also teach us how to mold these employees so that their leadership potential is utilized to its fullest.

7. Develop a Good Team

An organization is only as good as the weakest member of its team. All members of the teamwork in coordination and must be motivated to work together to achieve the best results.

The teamwork theories of organizational behavior are an essential tool in the hands of any manager.

8. Higher Productivity

All of this leads us to the most important goal of achieving the highest productivity in realizing the visions and goals of any organization.

If implemented well, the organizational behavior principles help in motivating all the members to do their best. The levels of motivation can be the difference between a good and a bad result.

Organizational Behavior has so many objectives by which it serves the organizations, individuals, groups and in a word all the stakeholders.

Historical Development of Organization Behavior

Management Thought and Classical Administration Theory

Though the practice of management can definitely be traced back to ancient time say, during the era of building huge structures like pyramids in Egypt or temples in India or the churches, but the formal discipline of management as we find it today evolved only during the latter part of nineteenth century. After completing this lesson, you will be able to. learn the following

• Scientific management

• Classical administration

• The human relations approach

• The systems approach

• The contingency approach

Scientific Management Frederick Taylor (1865-1915)

Frederick Taylor (1865-1915) was among the first to argue that management should be based on the following principle instead of depending on more or less hazy ideas: Well-matched

• Clearly defined

• Fixed principles

He pioneered the "scientific management'7 movement which suggested that systematic analysis could indicate "accurate" methods, standards and timings for each operation in an organization's activities. The duty of management was to select, train and help workers to perform their jobs properly. The responsibility, of workers was simply to accept the new methods and perform accordingly. The practical application of this approach was to break each job down into its smallest and simplest component pans or "motions". Each single motion in effect became a separate, specialized-job to be allocated -to a separate worker. Workers were selected and trained to perform such Jobs in the most efficient way possible, eliminating all wasted motions or unnecessary physical movement. A summary of scientific management, in Taylor's own words, might be as follows.

(a) The man who is fit to work at any particular' trade is unable to understand the science of that trade without the kind help and co-operation of men of a totally different type of education.

(b) It is one of the principles of scientific management to ask men to do things in the right way, to learn something new, to change their ways in accordance with the science and in return to receive an increase of from 30% to 100% in pay.

An Appraisal of Scientific Management Today

Alterations to pnor wnrV mpthndn nnd inpffirinnl mim^Pnts are used today, both to increase productivity and to reduce physical strain on workers. However, it has now been recognized that performing only one 'motion' within a job is profoundly unsatisfying to workers: operations need to be re-integrated into whole Jobs. It has also been recognized that workers can and should take more responsibility for planning and decision-making in connection with their work.

Looking back on scientific management as an approach, Hicks writes: "by the end of the scientific management period, the worker had been reduced to the role of an impersonal cog in the machine of production. His work became more and more narrowly specialized until he had little appreciation for his contribution to the total product... Although very significant technological advances were made... the serious weakness of the scientific approach of management was that it de-humanized the organizational member who became a person without emotion and capable of being scientifically manipulated, just like machines.

Frederic Taylor's Five Principles of Management

· Develop a science for each element of an individual's work

· Scientifically select, train and develop the worker

· Heartily cooperate with the workers

· Divide work & responsibility equally between managers & workers

· Improve production efficiency through work studies, tools, economic incentives

Classical Administration Theory of Management

Henri Fayol (1941-1925) was a French industrialist who put forward and popularized the concept of the "universality of management principles." In other words, he advocated that all organizations could be structured and managed according to certain rational principles. Fayol himself recognized that applying such principles in practice was not simple: "Seldom do we have to apply the same principles twice in identical conditions; Contribution must be made for different changing circumstances." Among his principles of rational organization, however, were the following influential ideas. *.

Division of work— Dividing the work into small convenient components and giving each component to one employee. It encourages employees for continuous improvement in skills

The development of improvements in methods. :

1. Authority- The right to give orders and the power to exact obedience.

2. Discipline- No slacking, bending of rules.

3. Unity of command— Each employee has one and only one boss.

4. Unity of direction- A single mind generates a single plan and all play their part in that plan.

5. Subordination of individual interests— When at work, only work things should be pursued or thought about.

6. Remuneration— Employees receive fair payment for services, not what the company can getaway with.

7. Centralization— Consolidation of management functions. Decisions are made from the lop.

8. Scalar chain (line of authority)— Formal chain of command running from top to bottom of the organization, like military

9. Order— All materials and personnel have a prescribed place, and they must remain there.

10. Equity— Equality of treatment (but not necessarily identical treatment)

11. Personnel tenure— Limited turnover of personnel. Lifetime employment for good workers'

12. Initiative— Thinking out a plan and do what it takes to make it happen.

13. Esprit de corps— Harmony, cohesion among personnel.

Out of the these, the most important elements are specialization, unity of command,

scalar chain, and, coordination by managers (an amalgamation of authority and unity of direction).

Art appraisal of classical administration

Many organizations continued to be managed on the rational lines of classical theory. But such organizations have certain drawbacks. An organization structured on classical lines is often identified as a "bureaucracy." While its formality, rationality and impersonality make it very stable and efficient in some respects, it has proved dysfunctional in other areas. A bureaucracy is stable partly because of its rigid adherence to its rules and procedures and the chain of command, but this rigidity also makes it:

· Very slow to respond to customer/consumer demands

· Very slow to respond to change in its business environment in terms of technology, competitors, new market trends.

· Very slow to learn from its mistakes Human Relations Movement

Human Relations Movement is a place where we will study the human relations school of management which was established after scientific management school. The fast-changing business environment of the late 20th century made it very difficult for classical organizations to compete. Flexibility and innovation began to challenge stability; diversity began to challenge "universal", "one-size-fits-all" principles of Management, multi-skilled project teams were seen to be more responsive to consumer demands than specialized, one-man-one-boss structures; the scalar chain of command was decimated by 'delayering' in response to economic recession and other forces.

Nevertheless, classical thinking allowed practicing managers to step back and analyze their experience in order to produce principles and techniques for greater efficiency and effectiveness. This emphasis resulted from a famous set of experiments (the Hawthorne Studies) carried out by Mayo and his colleagues for the Western Electric Company in the USA.

The company was using a group of girls as "guinea pigs'' to assess the affect of lighting on productivity. They were amazed to find that productivity shot up, whatever they did with the lighting. Their conclusion was that /'Management,- by consultation with the girl workers, by clear explanation of the proposed experiments and the reasons for them, by accepting the workers verdict in several instances, unwittingly scored a success in two most important human matters - the girls became a self-governing team, and a learn that cooperated whole heartedly with management."

Human Relations Movement and Behaviorist Schools of Management

The human relations movements actually started with the series of experiments conducted )Y George Elton Mayo, professor of Industrial Research at the Harvard Graduate School of Business and his colleagues at the Hawthorne plant of Western Electric Company. This company was a manufacturer of equipment for the Bell telephone system and at the time of the experiments, there was an acute problem of employee dissatisfaction at the plant. It was also quite evident that the employees were not producing up to their fullest capability. This happened in spite of the fact that it was one of the most progressive companies with pension schemes, sickness benefit schemes, and numerous other facilities offered to its employees. The earlier attempts of the efficiency experts produced inconclusive findings. So the company sought help from the group of university professors to find a solution to the problem. The study continued for an extended period of time and had gone' through various phases, which is briefly described here.

• Phase I: Illumination Experiments

• Phase II: Relay Assembly Test Room . * Phase III: Interviewing Program

• Phase IV: Bank Wiring Test Room °

Phase-I: Illumination Experiments

In order to test the traditional belief that better illumination will lead to higher level of productivity, two groups of employees were selected. In one, the control group, the illumination remained unchanged throughout • the experiment whilein the other the illumination was increased. As had been expected, the productivity went up in the latter or what was known as the experimental group, But what baffled the experimenters was the fact that the output of the control group also went up. As the

lighting in the formal group was not altered, the result was naturally puzzling and difficult to explain. The investigators then started to reduce the illumination for the test group. But in this case as well the output shoot up again. Thus the researchers had to conclude that illumination affected production only marginally and there must be some factor which produced this result.

Phase-II: Relay Assembly Test Room

In this phase, apart from illumination, possible effects of other factors such as length of the working day, rest pauses and their duration and. frequency and other physical conditions ; were probed. The researcher who was continuously present with the group to observe the functioning of the group acted as their friend and guide. Surprisingly, here also the researchers found that the production of' the group had no relation with the working conditions. The outcome of the group went increasing at an all-time high even when all the improvements in the working conditions were withdrawn. Nobody in the group could suggest why this was so. Researchers then attributed this phenomenon to the following:

• Feeling of perceived importance among the group members as they were chosen to participate in the experiment.

• Good relationship among the group

• High group cohesion.

Phase III: Interviewing Program

From the Relay Assembly Test Room, the researchers for the first time became aware about the existence of informal groups and the importance of social context of the organizational life. To probe deeper into this area in order to identify the factors responsible for human behavior, they interviewed more than 20,000 employees. The direct questioning was later replaced by non-directive type of interviewing. The study revealed that the workers' social relationship inside the organizations has a significant influence on their attitude and behavior. It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale.

Phase IV: Bank Wiring Test Room

It had been discovered that social groups in an organization have considerable influence on the functioning of the individual members. Observers noted that in certain departments, output had been restricted by the workers in complete disregard to the financial incentives offered by the organization. Mayo decided to investigate one such department which was known as the bank wiring room where there were fourteen men working on an assembly line.

Thus the Hawthorne study pointed out the following:

• The business organization is essentially a socio-technical entity where the process of social interactions among its members is also extremely important.

• There is not necessarily a direct correspondence between working conditions and high production.

• Economic motives are not the only motive for an employee. One's social needs can also significantly affect their behavior. Employee-centered leaders always tend to be more effective than the task-oriented leaders.

• The informal groups and not the individuals are the units of analysis in a group. Later on people like Douglas McGregor, Abraham Maslow, Kurt Lewin, Chester Bernard, Rensis Likert, Chris Argyris, Warren Bennis etc. from more formal behavior science background developed an approach which later came to be known as behavioral science approach. In the same line as in Human Relations movements, this school criticized the scientific management as being highly mechanistic and showing little respect to human nature. Behaviorists point out the superiority of more flexible organizational structure and employees' self-imposed control over the strict external control, as suggested by the classical schools.

An appraisal of the Human Relation Approach

• It is diagonally opposite to the classical schools. It focuses on the human side of the organization and certainly ignored other critical factors.

• At times some hard decisions have to be taken in an organization and it is impractical to try to please every one all the time.

• Though it is true that individuals do have other than economic motives, the importance of financial incentives cannot be ignored.

• There is hardly any empirical support for the view 'happy workers are more productive', which seems to be the focal theme of this school. This approach often puts an unrealistic demand on the managers and supervisors.

Contingency theory

The contingency approach to organization developed as a reaction to the idea that there nothing like "One best way" for designing organizations, motivating staff and so on. The basic tenet of contingency theory can be put essentially as follows?

Appropriate management approach depends ' on situational factors faced by an organization.

Newer research indicated that different forms of organizational structure could be equally successful that there was no inevitable-link between classical organization structures and effectiveness, and that there were a number of variables to be considered in the design of organizations and their style of management.

Essentially, "it all depends' on the total strength and weakness of organization and opportunities and threats which lies out in the environment of each organization." Managers have to find a "best fit' between the demands of:

(a) The tasks

(b) The people

(c) The environment

In other word Manager should consider situation .We would note contingency approaches to various aspects of management as we proceed through this module.

An appraisal of the contingency approach

Management writer Tom Lupton noted that:

It is of great important that managerial "style" or procedure for arriving at decisions, or one kind of organizational structure, is suitable for all organizations. Managers in each organization have to find that method which best meet the particular circumstances of size, technology, competitive situation and so on.

Awareness of the contingency approach will be of value in:

1. Encouraging managers to identify and define the particular circumstances of the situation they need to manage, and to devise and evaluate appropriate ways of handling them

Encouraging responsiveness and flexibility to change.

Organisational behaviour is the analysis of an organization’s structure, func­tions, and the behavior of its people. The behavioral study encompasses both groups as well as individuals. It is an interdisciplinary field and has its roots in sociology and psychology. Organizational behavior is based on sociol­ogy, as the word organization itself represents social collectivity. It is linked to psychology because the subject encompasses the study of people, individu­ally and in groups at the workplace (essentially, an organization).

Individual and group behaviour is again the function of many factors, which extend to other interdisciplinary fields such as economics, political science, social an­thropology, engineering, and human resource management. The scope of organizational behavior is therefore extensive. An organization needs to manage all these aspects so that it can sustain itself in a competitive market.

The following basic importance is below;

• It builds a better relationship by achieving people’s, organizational, and social objectives.

• It covers a wide array of human resources like behavior, training and development, change management, leadership, teams, etc.

• They bring coordination which is the essence of management.

• It improves the goodwill of the organization.

• It helps to achieve objectives quickly.

• They make optimum utilization of resources.

• It facilitates motivation.

• It leads to higher efficiency.

• They improve relations in the organization.

• It is multidisciplinary, in the sense that it applies different techniques, methods, and theories to evaluate the performances.

Theoretically, it is difficult for us to draw a line between management and organizational behavior. It can say that one supplements the other. Some organizational behavior issues have their roots in management processes. The study of management began much before the study of organiza­tional behavior. Studies in organizational behavior started in the middle of the twentieth century.

Organizational behavior studies, therefore, draw from management theories to understand aspects such as organizational structure, the behavior of people in an organization, and the issues concerning external and internal fit. Successful management of organizational behavior largely depends on the management practices that prevail in an organization. Understanding organizational behavior, therefore, requires a clear understanding of the basics of management.

Fundamental Concepts of Organizational Behavior Organization Behavior is based on a few fundamental concepts which revolve around the nature of people and organizations.

Such basic concepts are not specific to the field of OB.

In every field of social science or even physical science, has a philosophical foundation of basic concepts that guide its development. There are certain philosophical concepts in organizational behavior also.

The fundamental concepts of organizational behavior are;

• Individual Differences.

• Perception.

• A Whole Person.

• Motivated Behavior.

• The desire for Involvement.

• The value of the Person.

• Human Dignity.

• Organizations are Social System.

• Mutuality of Interest.

• Holistic Concept.

Individual Differences

Every individual in the world is different from others.

Science supports this idea. Each person is different from all others, probably in a million ways, just as each’s DNA profile is different.

The idea of the individual difference comes originally from psychology. From the day of birth, each person is unique, and personal experiences after birth tend to make people even more different.

Perception

Peoples’ perceptions are also different when they see an object. Two people can differently present the same object. And this is occurring for their experiences.

A person always organizes and interprets what he sees according to his lifetime of experience and accumulated value.

Employees also see work differently for differ in their personalities, needs, demographics factors, past experiences, and social surroundings.

A Whole Person

An employee’s personal life is not detached from his working life.

As an example, A women who attend the office at 9:00 AM is always anxious for her children’s school time (if her kids can participate in the school or not).

As a result, its impact falls on her concentration that means her working life.

For this reason, we cannot separate it. So the manager should treat an employee as a whole person.

Motivated Behavior

An employee has so many needs inside him.

So, they want to fulfill those needs. That’s why; they had to perform well in the organization.

Some motivations are necessary to enrich the quality of work. A path toward increased need fulfillment is the better way to enhances the quality of work.

Desire for Involvement

Every employee is actively seeking opportunities to work to involve in decision-making problems. They hunger for the chance to share what they know and to learn from the experience.

So, the organization should provide them a chance to express their opinions, ideas, and suggestions for the decision-making problem.

A meaningful involvement can bring mutual benefit to both parties.

Value of the Person

An employee wants to be treated separately from another factor of production, (land, capital, labor).

They refuse to accept the old idea that they are just treated as economic tools because they are the best creation of Almighty Allah.

For this, reason, they want to be treated with carrying respect, dignity and other things from their employers and society.

Human Dignity

This concept is very philosophical. Every person needs to be treated with dignity and respect, whether it’s the CEO of the company or labor.

It confirms that people are to be treated differently from other factors of production because they are of a higher order in the universe.

it recognizes human dignity because people are of a higher order; they want to be treated with respect and dignity and should be treated this way.

Organizations are Social System

From sociology, we learn that organizations are social systems; consequently, activities therein are governed by social laws as well as psychological laws. Just as people have psychological needs, they also have social roles and status.

Their behavior is influenced by their group as well as by their drives.

In fact, two types of social systems exist side by side in organizations. One is a formal system, and the other is the informal social system.

Mutuality of Interest

Mutual interest is represented by the statement that organizations need people and people also need organizations.

Organizations have a human purpose. They are formed and maintained by some mutuality of interest among their participants.

People see organizations as a means to help them reach their goals, while at the same time, organizations need people to help achieve organizational objectives.

If mutuality is lacking, it makes no sense to try to assemble a group and develop cooperation, because there is no common base on which to build.

Mutual interest provides a super-ordinate goal that unites the variety of needs that people bring to organizations.

The result is that people are encouraged to attack organizational problems rather than each other.

Holistic Concept

When the fundamental concepts of OB are placed together, a holistic concept emerges.

This concept interprets people-organization relationships regarding the whole person, the whole group, whole organization, and the whole social system.

It takes across the board view of people in organizations to understand as many as possible of the factors that influence their behavior.

Issues are analyzed in terms of the total situation affecting them rather than in terms of an isolated event or problems.

Organisation behaviour is an integrated process by which the role and behaviour of people are incurred. Indian ethical norms emphasised for better work environment with behavioural aspects. In order to perform interactive and mutual tasks and to develop some behavioural aspects, certain key elements or constitutes are to be included. These element may develop the interactive aspects for the well-being of persons.

As such, the key elements of organisational behaviour are stated here:

Element # 1. People:

People makes the interactive and behavioural platform in any organisation and people consists in the form of individuals and group. The role and behaviour of people identifies, recognise and develop the interactive relations towards behavioural attitudes in society.

Element # 2. Structure:

The formal relationship of people makes the structural design in organisation. The managerial and organisational levels are decorated by specific job as well as level to be incurred in structural design. The rights and responsibilities are also being determined in a particular group or structure.

Element # 3. Technology:

The technology represent all the resources with which people work and affects the task that they perform. The role and utilisation of technology has a significant influence on the performance of people and thereby to achieve perfections in the betterment of interactive behaviour.

Element # 4. Interactive Behaviour:

In any organisation, the interactive relations and behaviour between individual and groups as well as the relations by formal and informal ways also have an important role to make perspectives in organisational behaviour. The mutual behaviour among people may be developed by the identification, existence and interactive role in any organisation and society.

Element # 5. Environment:

All organisations operates within internal and external environment. The existence, structural design, work performance, mutual relations and behavioural patterns are duly influenced by the internal and external environmental factors.

Organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines. The predominant areas are psychology, sociology, social psychology, anthropology and political science.

Psychology

Psychology is the science that seeks to measure, explain and sometimes change the behavior of humans and other animals.

Sociology

Sociologists study the social system in which individuals fill their roles; that is, sociology studies people in relation to their fellow human beings.

Social Psychology

An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

Anthropology

The study of societies to learn about human beings and their activities.

During the 1920s, a series of studies that marked a change in the direction of motivational and managerial theory was conducted by Elton Mayo on workers at the Hawthorne plant of the Western Electric Company in Illinois. Previous studies, in particular Frederick Taylor’s work, took a “man as machine” view and focused on ways of improving individual performance. Hawthorne, however, set the individual in a social context, arguing that employees’ performance is influenced by work surroundings and coworkers as much as by employee ability and skill. The Hawthorne studies are credited with focusing managerial strategy on the socio-psychological aspects of human behavior in organizations.

The following video from the AT&T archives contains interviews with individuals who participated in these studies. It provides insight into the way the studies were conducted and how they changed employers’ views on worker motivation.

https://youtu.be/D3pDWt7GntI

The studies originally looked into the effects of physical conditions on productivity and whether workers were more responsive and worked more efficiently under certain environmental conditions, such as improved lighting. The results were surprising: Mayo found that workers were more responsive to social factors—such as their manager and coworkers—than the factors (lighting, etc.) the researchers set out to investigate. In fact, worker productivity improved when the lights were dimmed again and when everything had been returned to the way it was before the experiment began, productivity at the factory was at its highest level and absenteeism had plummeted.

What happened was Mayo discovered that workers were highly responsive to additional attention from their managers and the feeling that their managers actually cared about and were interested in their work. The studies also found that although financial incentives are important drivers of worker productivity, social factors are equally important.

There were a number of other experiments conducted in the Hawthorne studies, including one in which two women were chosen as test subjects and were then asked to choose four other workers to join the test group. Together, the women worked assembling telephone relays in a separate room over the course of five years (1927–1932). Their output was measured during this time—at first, in secret. It started two weeks before moving the women to an experiment room and continued throughout the study. In the experiment room, they were assigned to a supervisor who discussed changes with them and, at times, used the women’s suggestions. The researchers then spent five years measuring how different variables affected both the group’s and the individuals’ productivity. Some of the variables included giving two five-minute breaks (after a discussion with the group on the best length of time), and then changing to two ten-minute breaks (not the preference of the group).

Changing a variable usually increased productivity, even if the variable was just a change back to the original condition. Researchers concluded that the employees worked harder because they thought they were being monitored individually. Researchers hypothesized that choosing one’s own coworkers, working as a group, being treated as special (as evidenced by working in a separate room), and having a sympathetic supervisor were the real reasons for the productivity increase.

The Hawthorne studies showed that people’s work performance is dependent on social issues and job satisfaction. The studies concluded that tangible motivators such as monetary incentives and good working conditions are generally less important in improving employee productivity than intangible motivators such as meeting individuals’ desire to belong to a group and be included in decision making and work.

INDIVIDUAL BEHAVIOR

Certain individual characteristics are responsible for the way a person behaves in daily life situations as well as reacts to any emergency situations. These characteristics are categorized as:

• Inherited characteristics

• Learned characteristics

Inherited Characteristics

The features individuals acquire from their parents or from our forefathers are the inherited characteristics. In other words, the gifted features an individual possesses by birth is considered as inherited characteristics.

Following features are considered as inherited characteristics:

• Color of a person’s eye

• Religion

• Shape of the nose

• Shape of earlobes

Learned Characteristics

Nobody learns everything by birth. First our school is our home, then our society followed by our educational institutions. The characteristics an individual acquires by observing, practicing and learning from others and the surroundings is known as learned characteristics.

It consists of the following features:

• Perception: Result of different senses like feeling, hearing etc.

• Values: Influences perception of a situation, decision making process.

• Personality: Patterns of thinking, feeling, understanding and behaving.

• Attitude: Positive or negative attitude like expressing one’s thought.

The way an individual addresses a situation single-handedly or say in a group is influenced by many factors. The key factors influencing an individual’s attitude in personal as well as social life are:

A. Personal factors

– The personal factors that can influence the behavior of an individual is further categorized into 2 parts that includes Biographic and learned characteristics.

1. Biographic Characteristics

Every human being have certain type of characteristics which are inherited and genetic in nature. These characteristics cannot get changed. In an organization, if the manger will come to know about the limitations and qualities each personal possess, then they can easily make use of their behavior techniques of an organization in an effective manner. These characteristics include:

(i) Physical Characteristics – It mainly consists of skin, vision, height, complexion and many more. It creates impact on the performance of the individuals. Also, certain features includes tall, fat or slim. A person with good personality is always expected to dress and behave well in an organization, even if there is any correlation between the behavior and body structure or not.

1. Age– It is the inherited characteristic of an individual. In increasing performance, it is considered as an issue. Young people are expected to behave more energetic, adventurous, innovative, risk taking and ambitious. With the advancement in age, performance of a person is more likely to decline.

2. Gender – It is a genetical feature. This concept has initiated lots of discussion, debates and opinions. It is a traditional view that women are more emotional. A small difference between men and women can affect their job performance. Without any male-female differences, some of the people have competitive drive, leadership, motivation, learning ability, analytical skills or problem solving ability. A study have been conducted which says that the female employees generate more turnover rates. This is because there are more chances of females to quit their job for their personal reasons.

3. Religion– In determining some of the aspects of individual behavior, religion and its related cultures plays a significant role especially that have the basic concern with ethics, morals and code of conduct.

4. Marital Status – A recent research says that the responsibilities of the person inclined with their marital status and it has become difficult to stable in a particular job for the longer period of time. Employees that are married have fewer absences, more job satisfaction and fewer turnovers.

2. Learned Characteristics –

Learning is defined as a permanent change in the behavior of an employee that results in the interactions with the environment. The biographical features of a person are impossible to modify. Therefore, the managers of the organization paid a great interest in learning, studying and predicting the learned characteristics that include:

1) Personality– Personality does not only lie with the physical appearance of the person. A person with a good personality comprised of smart person, smiling face and charming personality. This concept is considered as dynamic that describes the growth and development of the psychological system of the person. It is also refereed as personal traits or characteristics that include persistence, dominance, aggressiveness and other qualities that is reflected through the behavior of the person within the organization.

2) Perception– It is the viewpoint that helps in the interpretation of some situation. Also, it is considered as the process which allows the information to enter in the minds and allowed to obtain sensible meaning for the whole world.

Perception is an intellectual process of transforming sensory stimuli into meaningful information. It is the process of interpreting something that we see or hear in our mind and use it later to judge and give a verdict on a situation, person, group, etc.

It can be divided into six types namely:

• Of sound: The ability to receive sound by identifying vibrations.

• Of speech: The competence of interpreting and understanding the sounds of language heard.

• Touch: Identifying objects through patterns of its surface by touching it.

• Taste: The ability to detect flavor of substances by tasting it through sensory organs known as taste buds.

• Other senses: Other senses include balance, acceleration, pain, time, sensation felt in throat and lungs etc.

• Of the social world: It permits people to understand other individuals and groups of their social world

3) Values – Values are considered as the global belief that instructs different judgments and actions across various situations. It consists of an individual’s idea based on the right, good and desirable opinions. It is closely embedded in the people who could be reflected through their behavior. Also, most of time values are directly influenced from the teachers, parents, friends and various other external factors that completely changed the ideas, opinions and thoughts of the person. For an organizational behavior, values are very significant. It helps in understanding the motivation and the attitude of an individual along with the influences of their perceptions or view point.

4) Abilities

Abilities are the traits a person learns from the environment around as well as the traits a person is gifted with by birth. These traits are broadly classified as:

• Intellectual abilities

• Physical abilities

• Self-awareness abilities

In order to understand how these affect a person’s behavior, we need to know what these abilities are.

• Intellectual Abilities: It personifies a person’s intelligence, verbal and analytical reasoning abilities, memory as well as verbal comprehension.

• Physical Abilities: It personifies a person’s physical strength, stamina, body coordination as well as motor skills.

• Self-awareness Abilities: It symbolizes how a person feels about the task, while a manager’s perception of his abilities decides the kind of work that needs to be allotted to an individual.

B. Environmental Factors

– On the behavior of a person, the external environment plays a significant role.

1. Economic Factors – In an economic environment, the behavior of an individual is largely affected due to certain factors including:

(a)Employment Level – The employment opportunities available to an individual directly influence the behavior of an individual. Even after the lack of job satisfaction, the individual have to stick to the same job as there are less job opportunities for him/her. In such cases, it is important that they may be loyal to the company in providing better productivity; they are only remaining in the same organization due to the monetary benefits offered to them.

(b)Wage Rates – Every employee is majorly concern with the wages offered to them by the company or the organization. The decision of a worker or an employee is directly affected by the monetary terms from the side of the company.

(c)General Economic Environment – There are various employees that does not have any effect of economic cycle whether in a public sector undertakings or government offices. Regardless of their economic position within the organization, they will receive their salaries. Employees in the private sectors are greatly affected by the stable income and job security but the former employees can be motivated from other factors.

Similarly, there are various other environmental factors in an organization that could affect the behavior of the employees, including social factors, political factors or legal environment.

C. Organizational Factors

-With wide variety of resources and organizational systems, individual behavior is influenced that includes:

1. Physical Facilities – At a workplace, the physical environment is considered as an arrangement of people and things positive that could also create influence on other people. There are certain factors that influence the behavior of an individual including cleanliness, light, ventilation, noise level, nature of job, number of people working, etc.

(a)Structure and Design – The way in which every department of the organization is set-up has direct concern with the structure and design. The performance and the behavior of an individual is directly influenced by the position at which person could perfectly fits in the whole organizational hierarchy.

(b)Leadership – The management of the organization establish the system of leadership so that the proper assistance, advice, guidance, direction and coaching could be given to the individuals. The behavior of each employee is influenced to the large extent to the behavior of the leaders or the superiors of the same organization. The behavior of the leaders is more important than the qualities of the leaders.

(c)Reward System – The performance and the behavior of individuals are directly influenced by the reward system that is established by the organization so that the employees could be able to compensate.

Cognitive Framework

Cognition means the mental action or process of acquiring knowledge. It can be understood through thought, experience, and the senses. As per cognitive framework of organizational behaviour, before the behaviour of a person cognition starts and giving input to the thinking, perception and problem solving of the person.

Social Cognitive Framework

The Social Cognitive Theory is a framework which will give a base to understand human behaviour. The social cognitive Framework in Organisational Behaviour states that the person and the external situations are interdependence with each other along with the behaviour itself to determine the behaviour. It means that along with cognitive and external situation the experiences faced through relevant past events determines what a person becomes and this will create an impact in subsequent behaviour.

In management, the focus is on the study of the five organizational behavior models:

• Autocratic Model

• Custodial Model

• Supportive Model

• Collegial Model

• System Model

1. Autocratic model

The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal.

In case of an autocratic model, the managerial orientation is doctorial. The managers exercise their commands over employees. The managers give orders and the employees have to obey the orders. Thus, the employees orientation towards the managers/bosses is obedience. Under autocratic conditions, employees give higher performance either because of their achievement drive or their personal liking to the boss or because of some other factor.

Evidences such as the industrial civilization of the United States and organizational crises do suggest that the autocratic model produced results. However, its principal weakness is its high human cost. The combination of emerging knowledge about the needs of the employees and ever changing societal values and norms suggested managers to adopt alternative and better ways to manage people at work. This gave genesis to the second type of models or organizational behaviour.

2. Custodial Model

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 employee need that is met is security. The performance result is passive cooperation.

While studying the employees, the managers realized and recognized that although the employees managed under autocratic style do not talk back to their boss they certainly think back about the system. Such employees filled with frustration and aggression vent them on their co-workers, families and neighbors. This made the managers think how to develop better employee satisfaction and security. It was realized that this can be done by dispelling employees' insecurities, frustration and aggression. This called for introduction of welfare programmers to satisfy security needs of employees. Provision for an on site day-care centre for quality child care is an example of welfare programme meant for employees. Welfare programmes lead to employee dependence on the organization. Stating more accurately, employees having dependence on organization may not afford to quit even there seem greener pastures around. The welfare programmes for employees started by the Indira Gandhi National Open University (IGNOU), New Delhi are worth citing in this context, IGNOU, in the beginning provided its employees facilities like house-lease facility, subsidized transport facility, day-time child care centre in the campus, etc. These made employees dependent on IGNOU which, in turn, became custodian of its employees.

The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline.

Although the custodian approach brings security and satisfaction, it suffers from certain flaws also. Employees produce anywhere near their capacities. They are also not motivated to increase their capacities of which they are capable. Though the employees are satisfied, still they do not feel motivated or fulfilled in their work they do. This is in conformity with the research finding that the happy employees are not necessarily most productive employees. Consequently managers and researchers started to address yet another question. "Is there better approach/way to manage people?" The quest for a better way provided a foundation for evolvement to the supportive type of model of organizational behaviour.

3. Supportive Model

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 employee need that is met is status and recognition. The performance result is awakened drives.

The supportive model is founded on leadership, not on money or authority. In fact, it is the managerial leadership style that provides an atmosphere to help employees grow and accomplish their tasks successfully. The managers recognize that the workers are not by nature passive and disinterested to organizational needs, but they are made so by an inappropriate leadership style. The managers believe that given due and appropriate changes, the workers become ready to share responsibility, develop a drive to contribute their mite and improve themselves. Thus, under supportive approach, the management's orientation is to support the employee's job performance for meeting both organizational and individual goals.

However, the supportive model of organizational behaviour is found more useful and effective in developed nations and less effective in developing nations like ours because of employee's more awakening in the former and less one in the latter nations.

4. The Collegial Model

The collegial model is an extension of the supportive model. As the literal meaning of the work 'college' means a group of persons having the common purpose, the collegial model relates to a team work/concept. The basic foundation of the collegial model lies on management's building a feeling of partnership with employee. Under collegial approach, employees feel needed and useful. They consider managers as joint contributors to organizational success rather than as bosses.

Its greatest benefit is that the employee becomes self-discipline. Feeling responsible backed by self-discipline creates a feeling of team work just like what the members of a football team feel. The research studies report that compared to traditional management model, the more open, participative, collegial managerial approach produced improved results in situations where it is appropriate.

Although there are four separate models, almost no organization operates exclusively in one. There will usually be a predominate one, with one or more areas overlapping in the other models.

The first model, autocratic, had 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.

5. The System Model

The most emerging model of the today’s corporate era is the system model. This model emerged from the rigorous research to attain the higher level of meaning at work. Today’s employees need more than salary and security from their job, they need the hours they are putting towards the organization is giving them some value and meaning. To add to it, they need the work that is ethical, respectful, integrated with trust and integrity and gives a space to develop a community feeling among the co-workers.

In the system model, the expectations of the managers are much more than getting the work done by the employees. The managers have to show their emotional side, be more compassionate and caring towards their team and they must be sensitive towards the needs of the diverse workforce. They have to devote their attention to creating the feeling of optimism, hope, trustworthiness, courage, self-determination, and through this, they try to develop the positive work culture where the employees feel more at ease and work as if they are working for their family. This ultimately results in the long time commitment and loyalty of the employees and the success of the company.

Managers also try to foster two main concepts; authenticity and transparency and social intelligence. Managers always try to make the employees feel the part of the project and the organization and give them all the support so that they can increase their efficiency and output. In turn, the employees feel more emotionally and psychologically part of the organization and become more responsible for their actions. Employees feel more inspired, motivated, important and feel that what they are doing and what they think would be good for the organization which goes beyond their personal achievements.

The models have been originated perceiving the changing employee needs with each model have been the stepping stone for the more productive and useful model. To assume that any one of the models has been the best model is wrong as no model is hundred percent perfect but have been evolving all through the years with the changes in our perception, study and social conditions that have been affecting the human behavior. Any of the above models can be modified, applied and extended in many different ways. As there has been advancement in the collective understanding of the human behavior, the new social condition emerged and with it there has been an evolution of the new model.

Table 1.1 : Four Models of Organizational Behaviour