OB MODULE 1.
DEFINING ORGANIZATIONAL BEHAVIOR
With a rich historical background such as the Hawthorne studies and using an
accepted scienti c methodology as brie y outlined above, the eld of organizational
behavior is now an accepted academic discipline. As with any other relatively new
academic endeavor, however, there have been some rough spots and sidetracks
along the way. Besides the healthy academic controversies over theoretical approach
or research nd- ings, perhaps the biggest problem that organizational behavior had
to overcome was an identity crisis. Early on, the eld of organizational behavior had
to answer questions such as: Is it an attempt to replace all management with
behavioral science concepts and tech- niques? How, if at all, does it differ from
traditional applied or industrial psychology? Fortunately, these questions have now
been answered to the satisfaction of most manage- ment academicians, behavioral
scientists, and management practitioners.
Figure 1.2 shows in very general terms the relationships between and emphases of
organizational behavior (OB) and the related disciplines of organization theory
(OT), organization development (OD), and human resource management (HRM).
As shown, OB tends to be more theoretically oriented and at the micro level of
analysis. Speci cally, OB draws from many theoretical frameworks of the
behavioral sciences that are focused on understanding and explaining individual and
group behavior in organizations. As with other sciences, OB accumulates evidence
and tests theories by accepted scienti c methods of research. In summary,
organizational behavior can be defıned as the understanding, prediction, and
management of human behavior in organizations.
Organizational Behaviour: A Framework
The framework for understanding the behaviour of employees in organizations
consists of ve basic components:
1. The environment
2. Individual processes
3. Interpersonal and group processes
4. Organizational processes
5. Change processes
1
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, 1. ENVIRONMENT
Environmental Forces and Organizational Adaptation
1. Shift in Environment:
◦ Organizations face rapid, unpredictable changes in their environments.
◦ Traditional, linear approaches no longer work in these volatile
conditions.
2. Need for New Strategy:
◦ Past strategies and internal improvements are not enough to succeed.
◦ Companies must break from past methods and embrace uncertainty.
3. Creating Opportunities, Not Just Seizing Them:
◦ Strategy must focus on creating new opportunities amid chaos.
◦ Shift from reacting to changes to proactively shaping the future.
4. New Types of Leaders:
◦ Managers focused on work itself, rather than managing.
◦ Leaders prioritize action over excessive planning.
◦ Front-line employees value knowledge and intelligence over nancial
capital.
5. Knowledge as Key Competitive Advantage:
◦ Knowledge and intelligence are more critical than traditional
resources.
◦ Success depends on staying ahead of change and valuing innovation.
6. De ning Success in the 21st Century:
◦ Winners will rede ne industries, create new markets, and challenge
norms.
◦ Key traits: adaptability, innovation, and willingness to break the status
quo.
7. Importance of Organizational Flexibility:
◦ Thriving in a changing future requires a capacity for self-change.
◦ Those who reimagine the future and adapt will survive, while those
who resist will fall behind.
2. INDIVIDUAL PROCESSES
Assumptions About Others:
• People tend to make assumptions about those they work or socialize with.
2
 fi fi fi
, • These assumptions affect how they interact with others.
Self-Awareness for Effective In uence:
• Good employees understand their own behaviors and motivations.
• By knowing themselves, they can better in uence and work with others.
Individual Behavior and Organizational Performance:
• The way each person behaves is key to the success of the organization.
• Understanding individual behavior is essential for good management.
People as Complex Systems:
• Each person has both a physical side (body systems) and a psychological side
(thoughts and feelings).
• The physical side includes bodily systems (like the digestive and nervous
systems).
• The psychological side includes attitudes, perceptions, personality, needs, and
values.
3. INTERPERSONAL AND GROUP PROCESSES
Humans are Social:
• People prefer to live and work with others.
• Our identity is in uenced by how others in our group view us.
Importance of Team Dynamics:
• Managers spend a lot of time in meetings, so group skills are essential.
• Interacting well with others is a key part of most jobs.
Achieving Goals Through Teamwork:
• Many goals need cooperation to be achieved.
• Successful companies (e.g., Wal-Mart, Tata Group) show how teamwork
meets employee and customer needs.
Value of Team Skills:
• Effective teamwork boosts productivity.
• Good teamwork skills are essential for managers and employees.
Importance of Cohesive Groups:
• Being part of a productive team supports mental well-being.
Skills for Effective Team Membership:
• Understand team dynamics and eliminate barriers to goals.
• Problem-solving, productive interactions, and overcoming obstacles are
critical.
3
 fl fl fl
, Role of Leaders:
• Leaders must align employee and organizational goals.
• Effective leadership helps organizations reach their goals.
Communication's Impact:
• How employees communicate affects morale and commitment.
• Interpersonal communication is crucial for teamwork and morale.
3. ORGANISATIONAL PROCESSES
Purpose of Joining Organizations:
• People join organizations to work, earn money, and pursue career goals.
Organizational Culture:
• Culture = shared assumptions and understanding about how things work.
• New employees need to learn the culture to t in and be productive.
Ways to Teach Culture:
•Organizations teach culture through formal programs, coworker guidance, or
both.
Use of Power:
•Power is used to accomplish goals and strengthen positions.
•Success with power depends on understanding when and how to use it and
predicting effects.
Job and Organizational Design:
•Job design de nes how tasks are organized and performed.
•Organizational design shapes the structure and interactions within the
organization.
Decision-Making by Managers:
• Decision-making is a key activity for managers and requires skill and
expertise.
CHANGE PROCESSES
Purpose of Change Management:
• Adjusts the organization to meet environmental demands.
• Requires employees to change their behavior for overall change to succeed.
Considerations for Change:
4

fi fi
DEFINING ORGANIZATIONAL BEHAVIOR
With a rich historical background such as the Hawthorne studies and using an
accepted scienti c methodology as brie y outlined above, the eld of organizational
behavior is now an accepted academic discipline. As with any other relatively new
academic endeavor, however, there have been some rough spots and sidetracks
along the way. Besides the healthy academic controversies over theoretical approach
or research nd- ings, perhaps the biggest problem that organizational behavior had
to overcome was an identity crisis. Early on, the eld of organizational behavior had
to answer questions such as: Is it an attempt to replace all management with
behavioral science concepts and tech- niques? How, if at all, does it differ from
traditional applied or industrial psychology? Fortunately, these questions have now
been answered to the satisfaction of most manage- ment academicians, behavioral
scientists, and management practitioners.
Figure 1.2 shows in very general terms the relationships between and emphases of
organizational behavior (OB) and the related disciplines of organization theory
(OT), organization development (OD), and human resource management (HRM).
As shown, OB tends to be more theoretically oriented and at the micro level of
analysis. Speci cally, OB draws from many theoretical frameworks of the
behavioral sciences that are focused on understanding and explaining individual and
group behavior in organizations. As with other sciences, OB accumulates evidence
and tests theories by accepted scienti c methods of research. In summary,
organizational behavior can be defıned as the understanding, prediction, and
management of human behavior in organizations.
Organizational Behaviour: A Framework
The framework for understanding the behaviour of employees in organizations
consists of ve basic components:
1. The environment
2. Individual processes
3. Interpersonal and group processes
4. Organizational processes
5. Change processes
1
 fifi fifi fi fl fi fi
, 1. ENVIRONMENT
Environmental Forces and Organizational Adaptation
1. Shift in Environment:
◦ Organizations face rapid, unpredictable changes in their environments.
◦ Traditional, linear approaches no longer work in these volatile
conditions.
2. Need for New Strategy:
◦ Past strategies and internal improvements are not enough to succeed.
◦ Companies must break from past methods and embrace uncertainty.
3. Creating Opportunities, Not Just Seizing Them:
◦ Strategy must focus on creating new opportunities amid chaos.
◦ Shift from reacting to changes to proactively shaping the future.
4. New Types of Leaders:
◦ Managers focused on work itself, rather than managing.
◦ Leaders prioritize action over excessive planning.
◦ Front-line employees value knowledge and intelligence over nancial
capital.
5. Knowledge as Key Competitive Advantage:
◦ Knowledge and intelligence are more critical than traditional
resources.
◦ Success depends on staying ahead of change and valuing innovation.
6. De ning Success in the 21st Century:
◦ Winners will rede ne industries, create new markets, and challenge
norms.
◦ Key traits: adaptability, innovation, and willingness to break the status
quo.
7. Importance of Organizational Flexibility:
◦ Thriving in a changing future requires a capacity for self-change.
◦ Those who reimagine the future and adapt will survive, while those
who resist will fall behind.
2. INDIVIDUAL PROCESSES
Assumptions About Others:
• People tend to make assumptions about those they work or socialize with.
2
 fi fi fi
, • These assumptions affect how they interact with others.
Self-Awareness for Effective In uence:
• Good employees understand their own behaviors and motivations.
• By knowing themselves, they can better in uence and work with others.
Individual Behavior and Organizational Performance:
• The way each person behaves is key to the success of the organization.
• Understanding individual behavior is essential for good management.
People as Complex Systems:
• Each person has both a physical side (body systems) and a psychological side
(thoughts and feelings).
• The physical side includes bodily systems (like the digestive and nervous
systems).
• The psychological side includes attitudes, perceptions, personality, needs, and
values.
3. INTERPERSONAL AND GROUP PROCESSES
Humans are Social:
• People prefer to live and work with others.
• Our identity is in uenced by how others in our group view us.
Importance of Team Dynamics:
• Managers spend a lot of time in meetings, so group skills are essential.
• Interacting well with others is a key part of most jobs.
Achieving Goals Through Teamwork:
• Many goals need cooperation to be achieved.
• Successful companies (e.g., Wal-Mart, Tata Group) show how teamwork
meets employee and customer needs.
Value of Team Skills:
• Effective teamwork boosts productivity.
• Good teamwork skills are essential for managers and employees.
Importance of Cohesive Groups:
• Being part of a productive team supports mental well-being.
Skills for Effective Team Membership:
• Understand team dynamics and eliminate barriers to goals.
• Problem-solving, productive interactions, and overcoming obstacles are
critical.
3
 fl fl fl
, Role of Leaders:
• Leaders must align employee and organizational goals.
• Effective leadership helps organizations reach their goals.
Communication's Impact:
• How employees communicate affects morale and commitment.
• Interpersonal communication is crucial for teamwork and morale.
3. ORGANISATIONAL PROCESSES
Purpose of Joining Organizations:
• People join organizations to work, earn money, and pursue career goals.
Organizational Culture:
• Culture = shared assumptions and understanding about how things work.
• New employees need to learn the culture to t in and be productive.
Ways to Teach Culture:
•Organizations teach culture through formal programs, coworker guidance, or
both.
Use of Power:
•Power is used to accomplish goals and strengthen positions.
•Success with power depends on understanding when and how to use it and
predicting effects.
Job and Organizational Design:
•Job design de nes how tasks are organized and performed.
•Organizational design shapes the structure and interactions within the
organization.
Decision-Making by Managers:
• Decision-making is a key activity for managers and requires skill and
expertise.
CHANGE PROCESSES
Purpose of Change Management:
• Adjusts the organization to meet environmental demands.
• Requires employees to change their behavior for overall change to succeed.
Considerations for Change:
4

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