2 INTRODUCTION TO ORGANISATIONAL BEHAVIOUR

JOSHI

Organisational behaviour is a part of total management, but plays a very important role in
every area of management and has been accepted by all the people concerned. It is an
accepted fact that an organisation can develop only when its people are developed. Study of
their behaviour, therefore, becomes imperative for the development of people. The term
'Organisational Behaviour' actually refers to behaviour of people in the organisation because
organisations themselves do not behave. Organisation behaviour thus, tries to understand
human behaviour in the organisations.
Human behaviour in a organisation is generally concerned with the thoughts, feelings,
emotions and actions of the people working in it. To understand any one individual and his
behaviour is in itself a challenge, but to understand group behaviour in an organisation is a
very complex managerial task. That is why it is rightly said that the success of any
organisation primarily depends upon the efficiency and effectiveness of the management, and
the effectiveness of the management depends primarily on its human skills and how well it
understands the needs and desires of the people working in the organisation.
Human behaviour in organisation is a relatively new concept and it emerged as a distinct
field of study in the late 1950's and early 1960's. This study has changed the traditional belief
of the managers that all the managerial and organisational problems are technical in nature.
The managers now understand that to make their organisations more effective, they have to
understand and predict the human behaviour in the organisations.

Organisational behaviour is directly concerned with the understanding, prediction and

control of human behaviour in organisations. It is an area of study that investigates the impact
that individuals, groups and structure have on behaviour within organisations. A few
definitions of organisational behaviour are as follows.

According to Callahan, Fleenor and Kudson "Organisational behaviour is a subset of

management activities concerned with understanding, predicting and influencing individual
behaviour in organisational setting."

According to Raman J. Aldag "Organisational behaviour is a branch of the Social

Sciences that seeks to build theories that can be applied to predicting, understanding and
controlling behaviour in work organisations."

According to Newstrom and Davis "Organisational behaviour is the study and

application of knowledge about how people act within an organisation. It is a human tool for
human benefit. It applies broadly to the behaviour of people in all types of organisation."

According to Fred Luthans "Organisational behaviour is directly concerned with the

understanding, production and control of human behaviour in organisations."

According to Stephens P. Robbins "Organisational behaviour is a field of study that

investigates the impact that individuals, groups and structure have on behaviour within the
organisations for the purpose of applying such knowledge toward improving an organisation's
effectiveness."

In short, organisational behaviour revolves around two fundamental components (1) The
nature of the man and (2) the nature of the organisation. In other words, organisational
behaviour may be organisation of individual's behaviour in relation to physical means and
resources so as to achieve the desired objective of the organisation.

Organisational Behaviour, Organisational Theory, Organisational Psychology & Human

Resource Management

Organisational behaviour is generally confused with organisational theory, organisational

psychology, and human resource management.
Organisational behaviour tries to understand the behaviour, attitudes and performance of
the people in organisations. Organisational theory focuses on the design and structure of the
organisations. Organisational theory is a macro study whereas organisational behaviour is a
microstudy of people's behaviour.
Organisational psychology restricts itself to psychological factors only whereas
organisational behaviour considers and combines all the branches of study e.g. Science,
technology, economics, anthropology, psychology and so on and so forth.
Organisational behaviour is the basis of human resource management and development.
The former is concept oriented whereas the latter is concerned with the technology of human
development. The variables influencing human development are scientifically studied under
organisational behaviour. Human resource management, is activated, directed and channelised
by the application of the knowledge of organisational behaviour which has become a field of
study, research and application for the development of human resources and the organisation
as a whole.
Thus, we can say that all these terms are interrelated but not synonymous with each other.
From the above definitions, the following features of organisational behaviour emerge :
1.Behavioural Approach to Management. Organisational behaviour is that part of
whole management which represents the behavioural approach to management.
Organisational behaviour has emerged as a distinct field of study because of the
importance of human behaviour in organisations.
2.Cause and Effect Relationship. Human behaviour is generally taken in terms of cause
and effect relationship and not in philosophical terms. It helps in predicting the behaviour
of individuals. It provides generalisations that managers can use to anticipate the effect of
certain activities on human behaviour.
3.Organisational Behaviour is a Branch of Social Sciences.
Organisational behaviour is heavily influenced by several other social sciences viz.
psychology, sociology and anthropology. It draws a rich array of research from these
disciplines.
4.Three Levels of Analysis. Organisational behaviour encompasses the study of three
levels of analysis namely individual behaviour, inter-individual behaviour and the
behaviour of organisations themselves. The field of organisational behaviour embraces all
these levels as being complementary to each other.
5.A Science as well as an Art. Organisational behaviour is a science as well as an art.
The systemetic knowledge about human behaviour is a science and the application of
behavioural knowledge and skills is an art. Organisational behaviour is not an exact
science because it cannot exactly predict the behaviour of people in organisations. At best
a manager can generalise to a limited extent and in many cases, he has to act on the basis
of partial information.
6.A Body of Theory, Research and Application. Organisational behaviour consists of a
body of theory, research and application which helps in understanding the human
 behaviour in organisation. All these techniques help the managers to solve human
problems in organisations.
7. Beneficial to both Organisation and Individuals. Organisational behaviour
creates an atmosphere whereby both organisation and individuals are benefitted by each other.
A reasonable climate is created so that employees may get much needed satisfaction and the
organisation may attain its objectives.
8. Rational Thinking. Organisational behaviour provides a rational thinking about
people and their behaviour. The major objective of organisational behaviour is to explain and
predict human behaviour in organisations, so that result yielding situations can be created.
Organisational behaviour in the study of human behaviour in the organisations.
Whenever an individual joins an organisation he brings with him unique set of personal
characteristics, experiences from other organisations and a personal background. At the first
stage organisational behaviour must look at the unique perspective that each individual brings
to the work setting.
The second stage of organisational behaviour is to study the dynamics of how the
incoming individuals interact with the broader organisation. No individual can work in
isolation. He comes into contact with other individuals and the organisation in a variety of
ways. The individual who joins a new organisation has to come into contact with the co-
workers, managers, formal policies and procedures of the organisation etc. Over the time, he
is affected by his work experience and the organisation as well as his personal experiences
and maturity. On the other hand, the organisation is also affected by the presence or absence
of the individual. Thus, it is essential that OB must study the ways in which the individuals
and organisation interact with each other.
The organisational behaviour must be studied from the perspective of the organisation
itself because an organisation exists before a particular individual joins in and continues to
exist after he or she has left the organisation.
Thus, OB is the study of human behaviour in the organisation, the individual-organisation
interaction and the organisation itself. And these factors are influenced by the external
environment in which the individuals and the organisation exist. This relationship can be
explained with the help of the following figure.

NATURE OF ORGANISATIONAL BEHAVIOUR

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Thus, we can say that we cannot study individual behaviour completely without learning
something about the organisation. On the other hand, we cannot study the organisations
without studying the behaviour of the individuals working in it. This is because the
organisation influences and is influenced by the people working in it. Moreover, both the
individuals and the organisation are influenced by the external environment.
Thus, the field of organisational behaviour is a complex field. It seeks to throw light on
the entire canvas of human factor in the organisations which will include the causes and
effects of such behaviour.
Organisational behaviour is an interdisciplinary approach as it has borrowed concepts,
theories, models and practices of physical sciences as well as social sciences. The main
features of organisational behaviour are primarily based on behavioural sciences. The
organisational behaviour is studied in relation to psychology, sociology, political science,
anthropology, economics, science, technology and environmental sciences. OB is, in fact,
called an applied behavioural science. The relationship of OB with other field of study is as
discussed below :
The term 'psychology' is derived from the Greek World 'Psyche' which means 'soul' or
'spirit'. Organisational behaviour studies human behaviour which is concerned mainly with the
psychology of the people. Psychology, especially, industrial or organisational psychology is
the greatest contributor to the field of organisational behaviour. Psychologists study behaviour
and industrial or organisational psychologists deal specifically with the behaviour of people in
organisational settings. Psychology as a science, measures, explains and suggests the
appropriate human behaviour. Individual behaviour is governed by perception, learning and
personality. Industrial psychology understands people's behaviour at work, particularly under
different working conditions, stress, conflicts and other related behaviour of employees. Job
satisfaction, performance appraisals and reward systems are measured and directed with the
use of psychological theories and models. Group behaviour in the organisations is studied,
researched and moulded with the use of theories of Social Psychology. The communication
system in the organisation, attitudes of employees, their needs etc. as a subject of social
psychology have a great influence on behaviour. Thus, many of the concepts which interest
psychologists e.g. learning, motivation etc. are also central to the students of organisational
behaviour. We can conclude, that the contribution of psychology in the field of organisational
behaviour is quite significant.
Sociology also has a major impact on the study of organisational behaviour. Sociology
makes use of scientific methods in accumulating knowledge about the social behaviour of the
groups. Sociologists study social systems such as a family, an occupational class, a mob or an
organisation. It specifically studies, social groups, social behaviour, society, customs,
institutions, social classes, status, social mobility, prestige etc. It studies the behaviour of the
people in the society in relation to their fellow human beings. Sociology contributes to
organisational behaviour through its contribution to tHe study of interpersonal dynamics like
leadership, group dynamics, communication etc. Socialisation is accepted for moulding the
behaviour of people where the capacities of individuals to learn and respond to social systems,
values, norms and social roles are accelerated and appreciated. The attitudes and behavioural
patterns of individuals and groups are greatly influenced by socialisation.

Anthropology is concerned with the interactions between people and their environment,
especially their cultural environment. Culture is a major influence on the structure of
organisations as well as on the behaviour of people within organisations. 'Anthropo' is a Greek
word which means 'man' and 'logy' means 'Science'. Aristotle defined anthropology as a
science of man's self understanding. It particularly studies civilisation, forms of cultures and
their impact on individuals and groups, biological features of man and evolutionary pattern,
speech and relationship among languages. Anthropology contributes in understanding the
cultural effects on organisational behaviour, effects of value systems, norms, sentiments,
cohesion and interaction. Socialisation involves spreading of values and missions of
organisation among employees. Anthropology influences the employees behaviour through
motivation, interaction, goal setting, decision making, coordinating and controlling.
In recent times, political science has also started interesting the organisational
behaviourists. Political Science is usually, thought of as the study of political systems. But
political scientists are interested in how and why people acquire power, political behaviour,
decision making, conflict, the behaviour of interest groups and coalition formation. These are
also major areas of interest in organisational behaviour.
Political parties and Government directly intervene in many activities of the organisation.
Specific principles of political science are observed in organisational behaviour for delegation
of authority and responsibility, conflict resolution and stress management.
In organisations, people strive for power and leadership recognition. Political Science
helps in the management of men in an effective and efficient manner. Political perspectives
and government policies are thoroughly analysed for moulding and modifying the behaviour
of people, because they greatly influence the organisation. The law and order of the country
influence the people at work.
Economists study the production, distribution and consumption of goods and services.
Students of organisational behaviour share the economist's interest in such areas as labour
market dynamics, productivity, human resource planning arid forecasting, and cost benefit
analysis.
The economic conditions of a country has long lasting impact on organisational
behaviour. If psychological and economic expectations of employees are met, they are
satisfied and become high performers. Economic systems include financial, commercial and
industrial activities which have greater influences on the behaviour of the people. The
consumption pattern in society monitors the behaviour of employees. Consumption oriented
society witnesses a different employee behaviour from that of a production oriented society.
Science is systemetised knowledge. The scientific methods attempt to produce
information that is objective in the sense that it is certifiable and independent of a person's
opinions or preferences. Scientific method is the backbone of organisational behaviour.
Organisational behaviour is based on the systemetised study of facts, behaviour, their
relationships and predictions. New scientific methods viz. observation of facts and behaviour,
explanation of facts and relationships and coming to conclusion thereon have become
important bases of the study of organisational behaviour. The cause and effect relationship is
also established in organisational behaviour like that of science. The verification of the
relationship and its quantification has added to the importance of organisational behaviour. It
becomes relatively easy to predict and mould the people at work. A researcher, in the field of
OB investigates new facts, tests theories, hypothesis and models. Personal bias, superflous
conclusions and whimsical approaches are avoided in the study. A systemetised form of
inquiry is used for the study of various problems.
The level of technological development affects the behaviour of the employees. Modern
age is the age of computerisation. It has come within the framework of the model of
organisational behaviour. The study of technological development is becoming essential for
understanding the organisational behaviour, because people are influenced by the
technological development. Human behaviour relations and environments develop as a result
of technological innovations. Technology changes consumer behaviour, production activities,
distribution and storage activities. To cope up with the technological development people
have to become educated and/or technically skilled. They should have to be responsibility
conscious and development oriented. Unskilled or irresponsible will have no place in the
modern innovative age. Thus, technological development leads to effective work behaviour,
improved organisational culture and helpful work environment.
Engineering also influences the study of organisational behaviour. Some topics are
common to engineering as well as organisational behaviour e.g. work measurement,
productivity measurement, work flow analysis, work design, job design and labour relations.
In fact, organisational behaviour is dependent on engineering for these technical jobs.
 Nowadays, medicine has also come in connection with the study of human behaviour at
work. Stress is becoming a very common problem in the organisations as well as in the people
working in the organisations. Research shows that controlling the causes and consequences of
stress in and out of organisational settings, is important for the well being of the individual as
well as the organisations. Medicine helps in the control of stress as well as stress related
problems.
Thus, it can be concluded that organisational behaviour has an interdisciplinary focus. It
draws from a variety of other fields and attempts to describe behaviour as opposed to
prescribing how behaviour can be changed in consistent and predictable ways.
Organisational behaviour is concerned with understanding and describing human
behaviour in an organisational setting. It seeks to shed light on the complex human factor in
organisations by identifying causes and effects of human behaviour. It is called a social
science because its main concern is people and their behaviour. Organisational behaviour
studies four determinants of behaviour in organisations-individuals, groups, interpersonal and
intergroup. Organisational behaviour is concerned with the behaviour of individuals and
groups and the impact of structural design on the behaviour of individuals and groups. The
knowledge of all these is applied to the organisation to make the organisation work more
effectively. Thus, the role of managers include understanding the human behaviour and
influencing the human behaviour. This is discussed in detail as follows :—
Organisations are people and without people there would be no organisations. If the
managers are to understand the organisations in which they work, they must first understand
the people who make up the organisations. Organisational behaviour is the tool, which helps
the managers in understanding human behaviour in all the directions in which the human
beings interact. Human can be studied from the point of view of the following four levels:—

(i) Individual Behaviour

The main focus of behavioural sciences is on the study of individual behaviour. It tries to
analyse why and how an individual behaves in a particular way in a given situation. The
behaviour of individuals, is affected by a number of psychological, social and cultural factors.
The job of organisational behaviourist is to integrate these factors to help in understanding
human behaviour.

(ii) Interpersonal Behaviour

Behavioural Sciences also provide means for understanding interpersonal behaviour in

the organisations. In organisations, two person relationship is inevitable. Interpersonal
interaction represents man's most natural attempt at socialisation. By studying behavioural
sciences, the managers can understand themselves and the others better. This will help in
improving interpersonal relations also. The techniques, generally, used for studying
interpersonal behaviour are study of perception, role analysis, transaction analysis etc.
Introduction to Organisational Behaviour 2.9

(iii) Group Behaviour

Hawthorne studies have proven that an individual behaves differently as an individual

and as a member of the group. His behaviour is often modified by group norms. Group
behaviour has a synergic impact on the performance. Group formation, behaviour and
interactions are studied in the course of the organisational process. Management can use
group dynamics for better communication, effective leadership and building high morale.

(iv) Inter Group Behaviour

Organisations consist of a large number of groups, which leads to complexity of

relationships. It is very important for the managers to understand the group relationships. The
cooperation, coordination and conflicts within groups influence performances. Organisational
behaviour helps the managers in achieving cooperative group relationships through
interaction, rotation of members among groups, avoidance of win-lose situation and focus on
total group objectives.
After understanding the human behaviour in the organisations the next job of the
managers is to influence the behaviour so that it conforms to the standards required for
achieving the organisational objectives. Managers can influence the behaviour through control
and direction. Organisational behaviour helps the managers in influencing the behaviour in
the following ways:

1. Leadership

Leadership helps the management in bringing human behaviour in tune with the
organisational requirements. An organisation must have effective leadership for its survival
and growth. The leadership theories are perpetually accepted by an organisation for smooth
performance of their activities. There are trait, goal and situational approaches for the
development of leadership. An organisation can achieve success only with the right type of
leadership. A competent leader uses all the human and physical resources at the maximum
levels for achieving the organisational goals. Leadership serves as the link among the
individuals, groups and various other aspects of the organisation.

2. Motivation

Motivation in an organisation is essential for ongoing work. Human beings work not only
for money but also for getting job satisfaction. The job of a manager in the organisation is to
get things done through others. He will be successful in his job when he can motivate his
subordinates to work for organisational goals. Organisational behaviour helps the managers in
understanding the needs and desires of the subordinates and other factors which affect their
motivation. The monetary and non-monetary awards are used as incentives to motivate the
subordinates.
3. Communication

People come in contact with each other through communication, thus, communication is
known as the building block of the organisation. To achieve organisational effectiveness, the
communication must be effective. Behavioural sciences help in improving communication in
the organisation. The communication process and how it works in interpersonal dynamics is
evaluated by behavioural sciences. Organisational behaviour analyses the factors that affect
communication so as to make it more effective.

4. Organisational Change and Development

Organisational development is needed for the change and development of individuals.

Organisations have to undergo changes as a result of social, technological, political and other
environmental factors. The organisational change and development are successfully handled
by the use of behavioural science knowledge. Change can be introduced through group
dynamics and proper education of employees through effective communication. The benefits
of change should be highlighted and information should be shared with all those likely to be
affected by the change.

5. Organisational Climate

Organisational climate is the sum total of all the organisational situations affecting human
behaviour. Organisational behaviour views organisational climate in totality rather than
merely improving physical working conditions, or increasing employees satisfaction by
changing isolated work process. Organisational climate is the creation of an atmosphere of
effective supervision, the opportunity for the realisation of personal goals, good relations with
others at the work place and sense of accomplishment. Organisational climate, thus, takes a
systems perspective and affects human behaviour. Organisational behaviour creates an
atmosphere of participative leadership, two way communication, adequate compensation and
better equipments for the job.
To conclude, it can be said that organisational behaviour is an exciting field of study
which can help the managers in effective handling of human resources for the realisation of
organisational goals. Specifically, it helps in understanding and managing human behaviour.
Modern organisational behaviour has a rich intellectual history, which provides a base for
what we know today. In the classical theories of organisation as well as management, the
roles of individuals and groups were ignored altogether or at the most.given minimum
attention. A few writers and managers, however, recognised the importance of individual,
group and social processes in the organisation. Robert Owen a British industrialist tried to
improve the condition of industrial workers in the early ninteenth century. Early in the
twentieth century the noted German Psychologist Hugo Musterberg argued that the field of
psychology should provide important insights into areas such as motivation and the
recruitment of new employees. Mary Parker Follet was another writer who believed that
management should become more democratic in its dealing with employees. She worked
mainly as a social worker among the poor in the Roxbury Section of Boston. Although, her
work career did not involve management, she made several basic and enduring observations
about organisations and management during the mid 1920s to the early 1930s. Three of her
observations about organisations and management were-power, conflict and leadership. She
had a positive view of power and saw it as basic to organisations and management. She also
believed that power should be a jointly developed power, a coactive not a coercive power.
Regarding conflicts, she believed that conflicts, in the organisations, could not be avoided.
Instead of running from conflicts managers should put conflict to" use in their organisations.
Her creative suggestion was that the integration of desires was the way to manage the
conflicts. This approach finds a solution that fully meets the goals of each party in dispute.
Both parties get what they want. With integration, conflict is put to work to help discover
new, creative solutions to problems and issues in organisations. Follett's view of the personal
qualities of a leader gives a vivid picture of the characteristics of a good leader. "Tenacity,
steadtastness of purpose, tactfulness, steadiness in stormy period."
The views of Robert Owen, Hugo Musterberg and Mary Follett hold minority views.
They were not widely accepted by practicing managers. Not much change took place till the
1930s in the management's perception of the relationship between the individual and the work
place. In the 1930s a series of research studies led to the emergence of organisational
behaviour as a field of study. A discussion of major findings of researches relevant to the
development of organisational behaviour is as follows :
The Hawthorne Studies were a large research programme conducted between 1927 and
1932 at Western Electric's Hawthorne plant near Chicago. The plant produced various parts
for telephone Switching Systems. This research was a landmark work done in the Social
Sciences in the United States. Several researchers were involved in this study, the best known
being Elton Mayo, Fritz Roethlisberger, Harvard Faculty members and consultants and
William Dickson, Chief of Hawthorne's Employee Relations Research Department. These
people conducted a series of experimental and observational studies in the plant and
conducted employee interviews between 1924 and 1932.
The First major experiment was ILLUMINATION EXPERIMENT (1924-27), whose
purpose was to study the different levels of lighting on productivity. The experimental design
used a control group where the lighting was not varied. An experimental group experienced
changes in lighting level. The results of these experiments baffled the investigators. As
lighting was increased for the experiemental group the productivity went up, when lighting
was subsequently reduced, the productivity again went up. The lighting for the control group
was not changed, but still the productivity went up. Eventually, the researchers concluded that
Simply being part of the experiment, which focussed new and greater attention on the
workers increased productivity. Previously interaction between superiors and workers was
limited. It had focussed mainly on the work and not on the workers themselves.
Following the illumination experiments, several researchers from Harvard University
began studying some groups of workers in the plant. Their goal was to understand the factors
that contributed to differences in human productivity. The researchers concluded that a more
people oriented form of management led to more productivity than a directive, authoritarian
and money oriented form of management. People wanted more than monetary incentives for
working.
In another major experiment, a Piecework Incentive System was established for a nine
man group that assembled terminal banks for telephone exchanges. Proponents of scientific
management would have expected each man to work as hard as he could to maximise his own
personal income. But the Hawthorne researchers found instead that the group as a whole
established an acceptable level of output for its members. An individual who wanted to be
accepted by the group could not produce at too high or too low a level. Thus, as a worker
approached the acceptable level each day he slowed down so as not to over produce. It was
concluded that to be accepted as a part of the group evidently meant more to the workers than
earning extra money.
Several other studies, like Relay Assembly test room experiments and mass interviewing
programme, supported the conclusion that individual and social processes are too important to
ignore.
The Hawthorne Studies have been criticised by the people. Critics site deficiencies in the
research methods, design and research results. The importance of Hawthorne studies in
developing our understanding of organisations cannot be diminished by such criticisms.
Although strong conclusions cannot be drawn directly from the research, the studies were an
impetus to further developing our understanding about organisational behaviour.
In 1950s the human relations approach became the core of managerial dynamics. The
Hawthorne Studies created quite a stir among managers and management researchers. This
provided the foundation for the human relations approach, which received support from
business leaders, academicians and labour unions. The labour shortage during the Second
World War gave further fillip to the concept and philosophy with the result that human
relations approach became the focal point of the principles and practice of management. The
basic principles underlying the human relations movement were that people respond primarily
to their social environment, that motivation depends more on social needs than economic
needs and that satisfied employees work harder than unsatisfied employees.
The values of human relations approach are exemplified in the work of Douglas
McGregor, an MIT psychologist, who proposed two sets of assumptions about human
motivation that a manager can hold. McGregor called the assumptions Theory X and Theory
Y. A manager's behaviour toward his workers and his management style will differ based on
the assumptions guiding his behaviour. The Theory X assumptions are :—
(i) The average person dislikes work and will avoid it if possible.
(ii) Because people dislike working, the managers have to control, direct
and coerce and threaten employees to get them to work towards
organisational goals.
{iii) The average person wants security, avoids responsibility and has little ambition.
Theory X takes a very negative and pessimistic view of human nature and employee
behaviour. In many ways it is consistent with the presumptions of Scientific Management.
The Theory Y assumptions are : —
i) The average person does not dislike work, it is as natural as a play.
ii) People are internally motivated to reach objectives to which they are committed.
iii) People are committed to goals to the degree that they receive personal rewards
when they reach their objectives.
iv) People will both seek and accept responsibility under favourable
conditions.
v) People have the capacity to be innovative in solving organisational problems.
vi) People are bright, but under most organisational conditions, their potentials are
underutilised.
Theory Y gives a more optimistic and positive view of employees. Theory Y, being the
representative of the human relations perspective, was the approach McGregor himself
advocated. These two sets of assumptions prevailed for many years. They were widely
accepted by practising managers. Although called a theory these are not theories, in fact. They
are assumptions or beliefs about human motivation that can strongly affect management
behaviour.
In 1943, Abraham Maslow published a pioneering theory of employee motivation that
became well known and widely accepted among managers. Maslow's theory assumes that
motivation arises from a hierarchical series of needs. As the needs at each level are satisfied,
the individual progresses to the next higher level.
Organisational behaviour began to emerge as a mature field of study in the late 1950s and
early 1960s. That period saw the field's evolution from the simple assumptions and
behaviourial models of human relationships to the concepts and methodologies of a scientific
discipline. Since that time, organisational behaviour as a scientific field of inquiry has made
considerable strides, although there have been occasional steps backwards as well.
The classical theories of organisation stressed that if appropriate changes were made in
the working environment with regard to the job, it would automatically result in increased
performance provided the workers are trained for the new environment and they are suitably
rewarded. But after the classical theories, the human relations Era came into being. The
human relations school, evolving from the Hawthorne studies, recognised that the
performance at work depended not merely on the environment, training or pay, but on
employee's feelings about how they were treated and their perceptions of the behaviour of
their supervisors towards them. Thus the study of management shifted from STIMULUS-
RESPONSE notion to understanding the STIMULUS-the workers feelings and reactions. It
was understood that workers also have needs and wants and they want to be accepted by
others as a member of the group. All this gave rise to the following approaches to the study of
organisational behaviour :
1.Human Resources Approach. This approach recognises that human resources in an
organisation are the central force. Their development will contribute to the success of the
organisation. Human resources approach provides for the changes in the managerial role.
It requires that the managers, instead of controlling the employees, should provide active
support to them by treating them as part of the group. The superiors and managers should
practice a style where workers are given the opportunities and encouragement to perform
under loose supervision. By treating individuals as mature adults, organisations can
increase productivity and at the same time meet the needs of individuals for
independence and growth.
2.Contingency Approach. The approach stresses that there is no single way to manage
effectively under all circumstances. The methods of behaviours which work effectively in
one situation may fail in another. The organisational structure and the processes of
management are governed by the external environment and several aspects of the internal
environment. Effective management processes will vary in different situations depending
on the individuals and groups in the organisation, the nature of the job and technology,
the environment facing the organisation and its structure. The manager's task therefore, is
to identify which method will, in a particular situation, under particular circumstances
and at a particular time, best contribute to the attainment of organisation's goals. Thus,
the manager will have to analyse each situation prior to action and different managerial
practices and styles are needed for effective management.
3.Productivity Approach. Productivity means the numerical value of the ratio of output
to input. Higher the value of this ratio, greater is the efficiency and effectiveness of the
management. The traditional concept of productivity was concerned with economic
inputs and output only. But nowadays human and social inputs and outputs are equally
important. Productivity, a significant part of organisational behaviour decisions, is
recognised and discussed extensively. These decisions relate to human, social and
economic issues. For example if better organisational behaviour can reduce worker's
turnover or the number of absentees, a human output or benefit occurs.
4. System Approach. The systems approach is of the view that an organisation is a
powerful system with several subsystems which are highly and closely interconnected. Any
action taken to solve the problems in one subsystem will have its effect on the other
subsystems as well; since all the parts of the organisation are closely connected. Thus, this
approach gives the managers a way of looking at the organisation as a whole, whole group,
and the whole social system. Systems approach has become an integral part of
Introduction to Organisational Behaviour 2.15
modern organisational theory. Organisations are termed as complex systems comprising of
interrelated and interlocking systems. A general system model of organisation as drawn by
Kast and Rosenzwerg (1966) is in the following figure:
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The public and government have been included keeping in view the relationship between
organisation and external environment. The other subsystems are integral part of overall
organisations.
To understand the true nature of human behaviour, in general and organisational
behaviour in particular is an essential job of the managers. A lot of generalisations have been
developed about the human behaviour, which have been based either on personal experience
or the experience of others. Some of these generalisations may prove effective in explaining
and predicting the human behaviour, but some of these generalisations may not be so effective
in explaining why do people do what they do. Therefore, it is required that a systematic
approach should be there to understand, explain and predict human behaviour. It is easy to
understand the behaviour of a person if we know what caused it or what made the person
behave in a particular way. The behaviour of an individual is caused by a number of variables.
To identify the major variables and to show how they relate to each other, the following
specific models have been developed :

1. The S-R Model. This model assumes that the reasons which cause human behaviour
are of two types :
(i) Internal Feeling
(ii) External Environment
Internal feelings of a person may relate to his motivational factor whereas the external
environment which is also called the stimulus directly influences the activity of a person. The
stimulus may be in the form of heat, light, etc. According to this approach, behaviour is
determined by the stimulus or in other words the external environment forces determine the
behaviour of a person at any given moment. There is a direct relation between stimulus and
response. that is why this process is called S-R process.
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The basic drawback of this model is that organism or person is immobile and passive.
Whereas in reality the person concerned piays an important role in behaviour which is
influenced by the internal feelings of the person. This model. thus, does not give a complete
picture as to what caused the person to act in a particular way in a particular situation.

2. S-O-B-A Model. S-O-B-A model is a comprehensive model of human behaviour

which combines the S-R situation and human being. But O in this model is not passive or
immobile, but it is a mediating, maintenance and adjustive function between S and R.
The S in this model stands for stimulus or the external environmental situation. It
includes light, heat, sound, actions of supervisors or other aspects of environment to which a
person is sensitive. The stimulus is very comprehensive and all encompassing in nature. It
stimulates the organism or person into action, interrupt what they are doing and help them to
make their choices. The stimulus incorporates all aspects of the environment-immediate
stimulus, physical environment and socio-cultural environment,

The O in this mode! stands for the organism as the person. But this O does not stand for
only the physiological being but also it includes the processes within the person e.g.; heredity,
maturity, knowledge, skills, values, perceptions, attitudes, personality and motivation. The
double headed arrow between S and O indicates the interaction between the situation and
organism.

The B stands for behaviour. It includes both overt and cover! behaviour such as body
movements, talking, facial expressions, emotions, sentiments and thinking The response of
organism indicated by a single headed arrow is the behaviour. Behaviour is anything that a
person does, it is not something that is doru; to a person,

The A stands for accomplishments and consequences. When behaviour, in turn, acts on
the outside world, it leads to accomplishment as shown by single headed arrow, It ia assumed
that the accomplishments may further change the stimulating conditions and thereby influence
the subsequent behaviour or it may create new stimulus leading to new behaviour.
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Since behaviour is influenced by the interaction of S with O, any change in S and O will
definitely influence the behaviour. It is manager's job to decide when to change the S and to
change O. But one must analyse the conditions carefully so that the changes introduced are in
the right direction and do not give rise to worse problems. Further, the same behaviour may
have different causes. In order to adequately understand and evaluate the behaviour, it is
essential to determine which cause is involved in a particular instance. The type of treatment
of the S or of the O that will work in one cause may not work in another cause or even with
the same cause on different occasions. Similarly, the same cause may have many behaviours.
Models are the techniques which help us to understand complex things and ideas in a
clear manner. The field of organisational behaviour is both exciting and complex. It is the
study of human behaviour in organisations, the interface between human behaviour and the
organisation and the organisation itself. The following figure shows this interrelationship
clearly:
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Source. Gregory Moorhead and Ricky Griffin : Organisational Behaviour.
A number of variables and concepts accompany the above interactions. All these factors
takers together complicate the ability of the managers to understand and manage people in
organisations. To understand the complexity of human behaviour and to explain it in a clear
manner, the need was felt to develop models of organisation behaviour. Different models are
being followed by the management in different organisations. The model that a manager holds
is based upon certain assumptions about the people working in that organisation and it leads
to interpretations of events. The models are unconscious but powerful guide to managerial
behaviour ; that is why these models are highly significant.
In the modern organisations, generally, the following four models of organisational
behaviour exist :
1. Autocratic Model. The basis of this model is the power of the boss.
Max Weber defined power as, "the probability that one actor, within a social
relationship, will be in a position to carry out his own will despite resistance."
Walternord defined power as, "the ability to influence flow of available energy and
resources towards certain goals as opposed to other goals. Power is assumed to be exercised
only when these goals are atleast partially in conflict with each other." The essential features
of this model are as follows :
(i) Organisation with an autocratic environment is authority oriented. This authority is
delegated by the right of command over the people to whom it applies. The management
believes that it is the best judge to determine what is better for the health of both the
organisation and its participants and that the employees' obligation is to follow orders. It
assumes that the employees have to be directed, persuaded and pushed into performance.
Management does the thinking and employees obey the orders. This view of managing
organisations has been developed by D. McGregor in his theory X. This conventional view
leads to tight control of employees at work.
(ii) Under autocratic model, the employee's orientation is obedience to the boss, they
need not be respectful to him. The bosses have absolute power to hire, fire and perspire
employees. The employees depend upon the boss and are paid minimum wages for minimum
performance. This theory of scientific management was developed by F.W. Taylor as the
conventional view of management. The employees sometimes give minimum performance,
though relutantly because they have to satisfy the subsistence needs of themselves and their
families. Some employees give higher performance because of a drive to overcome
challenges.
According to the research of David C. McClelland of Harvard University, some people
like to work under strong authority because they feel that their boss is a natural born leader.
(iii) The autocratic model has been successful in some situations where the workers are
actually lazy and have a tendency to shirk work. It is also required in the situations where the
work to be done is time bound. The threat generally used by the managers is that the reward
or wages will be withheld if the workers donot obey them.
(iv) The leadership in an autocratic model is negative because the employees are
uninformed, insecure and afraid.
(v) Nowadays, this model is not applicable in strict sense because there are minimum
wages laws in most of the countries. Thus, the managers cannot threaten to cut down the
wages or rewards of the workers. Moreover, the workers are educated and organised, thus
they cannot be dictated to by the managers all the time.
2. The Custodial Model. To overcome the shortcomings of the Autocratic model, the
custodial model came into existence. The insecurity and frustration felt by the workers under
the autocratic model sometimes led to aggression towards the boss and their families. To
dispel this feeling of insecurity and frustration, the need was felt to develop a model which
will improve the employer-employee relations. The custodial model was used by the
progressive managers. Some of the important features of this model are as explained below :
(i) The success of the Custodial Model depends upon the economic resources because this
model emphasises the economic rewards and benefits. Since employee's physiological needs
are already met the employer looks to security needs as a motivating force.
(ii) The employees under Custodial Model depend upon organisation rather than their boss. If
the organisation has got good welfare and development programmes for the employees, they
cannot afford to leave the organisation.
(iii) Under this model, the employees are satisfied and happy and they are not strongly
motivated. So they give only passive cooperation. They do not work more vigorously than
under the autocratic approach, (iv) The main benefit of this model is that it brings security and
satisfaction
to the employees.
(v) The difficulty, with this model is that it depends upon material rewards only to motivate
the employees. But the workers have their psychological needs also.
Due to the drawbacks of this method, a search began to find out the best way to motivate the
workers so that they produce with their full capacity and capabilities.
3. The Supportive Model. The supportive model has originated from the 'Principles of
Supportive Relationships." According to Rensis Likert, "The leadership and other processes of
the organisation must be such as to ensure a maximum probability that in all interactions and
all relationships with the organisation, each member will, in the light of his background,
values and expectations, view the experience as supportive, and one which builds and
maintains his sense of personal worth and importance."
The main features of this model are as follows :
(i) The Supportive Model depends on leadership instead of power or money. Management,
with the help of leadership try to create a favourable organisational climate in which the
employees are helped to grow to the greater capacities and achieve things of which they have
the capability, in compliance with the goals of the organisation.
(ii) The leader assumes that the worker will take responsibility, make their contributions and
improve themselves, if given a chance. It is assumed that the workers are not lazy and work
shirkers by nature. If properly motivated, they can be self directed and creative to the
organisation.
(iii) It should be the orientation of the management to support the employees' job
performance, rather than simply giving them payments and benefits as in the custodial
approach.
(iv) This model takes care of the psychological needs of the employees in addition to their
subsistence and security needs. It is similar to McGregor's theory and the human resources
approach to people.
(v) This model is an improvement over the earlier two models. Supportive behaviour helps in
creating friendly superior-subordinate interaction with a high degree of confidence and trust.
This model has been found to be effective in affluent countries where the workers are. more
concerned about their psychological needs like high self esteem, job satisfaction etc. But it has
limited application in India, where the majority of the workers are below the poverty line. For
them, the most important requirement is the satisfaction of their physiological needs and
security. They are not much concerned about the psychological needs.
4. The Collegia! Model. The collegial model is an extension of the supportive
model. The Dictionary meaning of collegial is a body of persons having a common purpose.
As is clear from the meaning, this model is based upon the partnership between employees
and the management. The features of this model are as follows :
(i) This model creates a favourable climate in the organisation as the workers feel that they are
the partners in the organisation. They don't see the managers as their bosses but as joint
contributors. Both the management and workers accept and respect each other. (ii) The
collegial model inculcates the team spirit in an organisation. The workers accept
responsibilities because they find it their obligation to do so, not because that they will be
punished by the management. This helps in developing a system of self discipline in the
organisation. (iii) In this kind of collegial environment, the workers have job satisfaction,
job involvement, job commitment and some degree of fulfilment, (iv) The collegial
model is especially useful in research laboratories and
similar work situations.
After studying all the four models it becomes very clear that there is no single model
which is best suited to the requirements of all the organisations. The managers will have to
make use of a combination of models depending upon the circumstances of the case. But
keeping in view the emergence of professional management, we can say that the use of
Supportive and Collegial will be more as compared to the Autocratic and Custodial Models.
5. Other Models. Some models of organisational behaviour can also be classified by a
number of approaches. A few of these models are as explained below.
(i) Normative Models. The normative models seek to find out that what should be done to
produce optimum results. These models are concerned with the determination of optimum
actions. Most of the management theories are comprised of the normative models, because
while preparing the plans and policies the management is more concerned with what should
be done or what should not be done by the managers and the employees.
(ii) Empirical Models. While the normative models are concerned with what should be
done, the empirical models describe the activities the employees actually perform. This model
becomes an integral part of organisational behaviour because organisational behaviour is
concerned with what is actually taking place in the organisations and how do people actually
behave.
(iii) Ecological Models. No business enterprise can exist in a vacuum. It has to
continuously interact with the environment. All the functions of the organisation are affected
by the environment as the environment supplies the inputs which are converted by the
organisation into outputs. Through a process of feed back output causes the emergence of new
inputs. This interaction between the organisation and environment is known as ecological
interaction and this is the crux of ecological approach. Models which deal with the changes
which take place in the environment and which understand the complexities of environment
are ecological models.
(iv) Non-Ecological Models. As the name suggests this model is the opposite of
ecological model. Whereas the ecological model accepts that the environment is complex and
changes keep on taking place, the non-models assume stability in the environment and that
everything will remain the same. This model does not help in generalising that what will
happen in future. In the modern day world, when the environmental factors are assuming a lot
of importance, this model is not very useful.
(v) Ideographic Models. The models that are developed to deal with specific cases or
unique situations are called ideographic models. This model deals with situations like single
nation, single organisation, single group, individual, biography, historical episode etc. When
the organisational behaviour is concerned with micro-level analysis this model is generally
used.
(vj) Nomothetic Models. These models deal with general situations. These are concerned
with theory building on the macro level basis. These are concerned with generalisations, laws,
hypothesis which indicate regularity of behaviour and correlation between variables. These
models deal with situations like cross country, cross organisation, cross group, cross
individual analysis of organisational system.
 To summarise, we can say that organisational behaviour is a field of study that
investigates the impact that individuals, groups and structure have on behaviour within an
organisation and then the results of the investigations are applied to make organisations work
more effectively. Organisational behaviour uses systemic studies to improve predictions of
behaviour that would be made from instructions of the management alone. But, because each
organisation is different from the other one, we have to find organisational behaviour model
which will suit that particular organisation. Organisational behaviour offers both challenges
and opportunities for the managers and it also offers guidance to the managers in creating an
ethically healthy working environment.

DISCUSSION QUESTIONS

1."Organisational behaviour represents interaction among individuals, groups and the

organisation." Elucidate this statement.
2.What is organisational behaviour ? What is its scope ? What is the necessity of
studying this subject ?
3.What is organisational behaviour ? Discuss its nature. What are the contributing
disciplines to OB ? List their contribution at the individual, group and organisational
levels.
4.Discuss the role of organisational behaviour in an organisation.
5.Discuss in brief the foundations of organisational behaviour.
6.Explain the different approaches to the study of OB.
7.Explain the process of human behaviour. Do you agree with the statement that
"Behaviour is generally predictable" ?
8.How do you think human relations approach.can be differentiated from the human
resource approach to management ?
9.How does the classical school of thought fit with the systems approach ?
10.Explain a few models of organisational behaviour.
11.What are the various determinants of organisational behaviour ? Discuss the general
conclusions you draw from the models of organisational behaviour.