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Book: - Uday Parrekh / T.B.


Introduction to organization

What is OB ?

In an organization there are groups,

1) Individuals form the team / group

2) Small groups become –(in an organization small groups are called depts) big


Human Behavior of Organization the study and application of knowledge about how
people, as individuals and groups behave within an organization.

Goals of OB

1) To describe systematically, how people behave under a variety of conditions.

2) To understand why people behave as they do – the reasons behind it.

3) To predict future behaviours of employees so that managers could take

preventive actions.

4) To control human behavior and develop human activity at work.



1) Beliefs, thoughts & Manifested actions
words internal to an external to an
individual individual
2) Not observable Observable
3) Cannot be changed Can be changed
unless decided and through positive and
auctioned upon by the negative
individual himself. reinforcements
4) Change resulting from Change resulting
self awareness and from coercions will be
actions will be long- temporary
Benefits of OB

…….helps to understand the behavior of

- Intra-person

- Inter-person

- Intra-group

- Inter-group

Key forces affection OB:


1) People – Individuals, Groups

2) Environment – Government, Competition

3) Structure – Relationships (Orgn. Structure), Role descriptions.

4) Technology – Machinery / Automation

Key forces affecting OB – PEOPLE:

People means – Individual & Groups mean – Informal / Unofficial, Formal /


Key forces affecting OB - PEOPLE

- Workforce has become richly diverse

o educational background

o In talents.

o In perceptions and exceptions from their jobs.

-Diversities bring challenges to mangers to solve their problems. They have to
adopt and adopt these diversities.

- Managerial leadership-practices should change to match these new conditions.

- OB starts with a set of fundamental concepts, revolving around:

- The people and their nature,

The organization and its nature:

There are: Six such basic concepts in respect of people and

There in respect of organization

The fundamental concepts of people and organization:

The Nature of the People The Nature of the Organization

1) Perception 1) Mutual interest
2) A whole person 2) Ethics
3) Motivated behavior 3) Social systems
4) Desire for involvement
5) Value of the person
The Nature of People - 1) Perception

- People look at things differently evens when presented with same object two
people view it differently.

- Their view is filtered by “Perception”, which is ”the unique way in which

- Each say: “I reach not to an objective world, but to a world judged by my own
beliefs, values, experiences, cultures, expectations, social surroundings etc.

- Managers must learn to expect and accept perceptional differences.

Nature of people – 2) Individual difference.

People have much in common –

Gets excited by achievement

Grived by loss of the loved ones.

Yet, each person is different (the DNA test is a proof).

Everyone looks alike in the body structures, but looks difference and behaves

Organization should recognize these commonalities as laos diversities

Nature of people – 3) A whole Person

- You can’t hire only a person’s skills or only brain, but the whole person’s skill
or only brain, but the whole person. (Home, office, Social)

- Emotional conditions are not separate from physical conditions and start
smiling when you are emotionally happy. Or you shout when you are
emotionally angry.

- Also, home life is not totally separate from work life. People function as a
total human being
- Organization / Manager should first make an employee a better “person” and
then a better “personnel.”

- So…be a “Personal Manager” and not a “Personnel Manager”.

The Nature of People –4) Motivated behavior

- Human needs drive him towards achievement of objectives. Managers

should make him believe that achievement of organization objectives only
lead to achievement of his individual needs.

- Reversely, non-fulfillment of his needs it will result from his in-action or lack
of achievement of intended positive result.

- Organization, therefore, needs to motivate people to drive them towards

mutual objectives

Nature of People - 5. Desire for Involvement

- Employee wants to involve himself in work that matters to him, to show his
capabilities and to get appreciated / rewarded.

- Organization to look for different ways to involve people, give them

opportunities for motivated involvement.

- This can be achieved through “Employee Empowerment”.

- This will benefit mutually.

6. Value of the Person

- Employees want to be valued for their skills and abilities, and to be provided
with opportunities for development.

- They expect to be treated with respect, carrying and dignity unlike other
resources in the organization namely, machine, material, methods etc.


The 3 concepts of organization:

1. Social system

2. Formed for mutual benefits/ interest.

3. Ethics.

1. Social system:

- Organization is governed by social laws and psychological laws

- People have psychological needs, so also social roles and status.

- Two social systems in organization

o Formal

o Official i.e organization structure (who reports to whom, etc.)

o Informal

o Unofficial resulting from social interaction

Organization formulates various ethical programs:

2. Ethics

- Ethical treatment is must to attract and retain valuable employees.

Organization must treat employees ethically.

o Code of ethics

o Published statement of ethical values

o Ethical training programs

o Rewards to employees

o Internal procedures to handle employee behaviors.

- Organization behavior is molded by beliefs in ethics by organization and


3. Mutual interest

- Interdependence
Organization needs employees as much as employees need organization – two sides
of a single coin, inseparable

- If mutuality lacks, then organization is just a group; of people assembled


- Mutual interest provides a super-ordinate goal.

Triple reward system

- When organization’s goals and action are ethical, it mutually creates a triple
reward system, in which the individual, organization and social objectives are

- Employees find more satisfaction in work when there is cooperation and

teamwork. They are learning, growing and contributing

- Organization becomes more successful since it operates more effectively.

Quality is better. Service improved and cost reduced. The biggest
beneficiary: the society.

Structural clarity:

- Relationships:

o Reporting clarity

o Who reports to whom……..

- Job

o Role clarity

o Responsibilities

o Authorities (Financial / Non-financial)

o Systems, methods, procedures.


- Knowledge & application of technology/up-gradation/multi-skilling.

- Technology decides who to be stationed, where, when, why, how much time
to work, etc.

- How it affects me?

o What is there in it for me?

o What are my hardships?

o Would it increase or reduce my efforts?

o My job security – today & tomorrow.


- Govt policies, laws, rules & regulations.

o Labour laws – protection to weaker sections

- Social obligations

o Expectations from the society limit

o Organization freedom.

- Competition

o Creates job market competitive

o Forces increase in productivity, quality, speed and reduction of

wastages (everything in business decided by customers).

Why do people behave the way they do?


Comes from a Latin word “Persona” means:

Self: - Son – Brother – Friend – Student – Husband – Father – Subordinate – Superior


Every role calls for project the personality to suit the role.

It is the integrated organization of all the

- Psychological

- Intellectual

- Emotional

- Physical

Characteristics of an individual especially as they are presented to other people.

Factors enhancing personality

Be lively, full of energy.

Shows signs in life. A tired person will generate only the same feeling among the

There are no boring subordinates, but only boring bosses.

Be enthusiastic