SCHOOL OF MANAGEMENT STUDIES

BBA
ORGANIZATIONAL BEHAVIOR
Course Objectives:
1.To familiarize the students to the fundamentals of Organizational Behavior (OB).

2.To foster a deeper understanding of organizational dynamics and effective

management practice.

3.To Interpret and apply theories and concepts related to individual differences, group

behavior, and organizational performance in diverse organizational contexts.

4.To provide students with the skills to recognize and discuss different perspectives of

working culture in organizations.

5.To equip students with the analytical tools and concepts necessary to interpret and

address challenges and opportunities in organizational behavior.

Course Outcomes:

1.Understand and summarize key concepts in organizational behavior, explain

and apply these concepts to real-world situations.

2.Critically evaluate different approaches to managing organizational

behaviour.

3.Design interventions for positive organizational behavior

4.Integrate multiple perspectives to understand complex organizational

issues.
 MODULE I

INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

Organizational Behavior: Concepts & Importance

Understanding Human Behavior in Organizations

By Prof. Lopamudra Behera

Contents:
1.Concept of Organizational Behavior
2.Scope of OB
3.Importance of studying OB
4.Interdisciplinary Approaches
5.Overview of contributing disciplines
 What is an Organization?
An organization is a collection of people who work together to achieve individual and
organizational goals
Individual goals!!!
Organizational goals!!!
Behavior of People within
Organization

People behave in an organizational setting, and those

behaviors affect the organization's performance
 Meaning and Definition of OB:
Organizational behavior (OB) is the study of how
individuals and groups behave within organizations. It
examines the impact of organizational systems,
structures, and processes on human behavior, with the
goal of applying this knowledge to improve organizational
effectiveness and employee well-being.
"OB is directly concerned with the understanding,
predicting and controlling of human behavior in
organizations." - Fred Luthans
"Organizational behavior is a field of study that
investigates the impact that individuals, groups and
structure have on behaviors within the organizations for
the purpose of applying such knowledge towards
improving organizations effectiveness." - Stephen P.
Understanding of OB

Organizational Level

Group Level

Individual
Level
Scope of Organizational Behavior

• Micro Level (Individual Behavior)

o Personality
o Motivation
o Perception
o Job Satisfaction
• Meso Level (Group Dynamics)
o Team Dynamics
o Communication
o Leadership
o Conflict Resolution
• Macro Level (Organizational Structure)
o Organizational Culture
o Change Management
o Organizational Design
o External Environment:
Key Aspects of Organizational Behavior

Individual Behavior: Personal attributes such as

personality, perception, and motivation affect work
performance.
Group Dynamics: Individuals behavior in groups,
teamwork, communication, and conflict resolution.
Organizational Culture: Shared values, beliefs, and norms
within the organization.
Leadership: Different leadership styles and their impact
on employee engagement and organizational outcomes.
Change Management: Organizational change
Implementation while minimizing resistance from
employees.
Organizational Development: Facilitate Development and
Training ensures competitive advantage
Importance of Studying Organizational Behavior

• Improves Communication

• Aids in Conflict Resolution and Collaboration

• Develops Leadership Skills

• Facilitates Teamwork

• Promotes a Positive Work Environment

• Enhances Job Satisfaction

• Guides Change Management

• Informs Organizational Culture

• Enhances Performance Management

• Create a positive work environment

Interdisciplinary Approach of Organizational
Behavior

• interdisciplinary field that integrates knowledge from various disciplines to understand and

analyze human behavior in organizational settings. This approach allows for a more

comprehensive understanding of the complexities involved in workplace dynamics.

• Psychology: Focuses on understanding individual behavior, perception, learning, motivation,

etc.

• Sociology: Studies social systems, group behavior, social interactions, and institutions

• Social Psychology: Examines the behavior of individuals in social situations and group contexts

• Anthropology: Looks at organizational culture, cross-cultural interactions, and how culture

Interdisciplinary Approach of Organizational Behavior
Interdisciplinary Approach of
Organizational Behavior
Interdisciplinary Approach of
Organizational Behavior
Interdisciplinary Approach of
Organizational Behavior
Interdisciplinary Approach of
Organizational Behavior
Social psychology is the study of how individuals
and groups interact with each other, and how these
interactions can affect organizational behavior.

Attitude
Communication
Social Group Thinking
Psychology Group
Power
Intergroup
 Conclusion

• Individual Behavior: Explore personality traits, motivations, and perceptions that influence
individual actions within organizations.
• Group Dynamics: Examine team interactions, communication styles, leadership roles, and
conflict resolution to enhance collaboration.
• Organizational Structure: Analyze how organizational design, culture, and departmental
roles impact employee behavior and performance.
• Change Management: Understand strategies for effectively implementing organizational
changes and managing resistance.
• External Environment: Investigate how external factors like economic conditions and
globalization affect organizational behavior and adaptability.
References:
1.Robins & Sanghii – Organizational Behaviour, Pearson Education, New Delhi.

2.Aswathapa.K, Organisational Behavior, Himalaya. Publishing house.

3.https://openstax.org/details/books/organizational-behavior

4.https://www.mygreatlearning.com/academy/learn-for-free/courses/organizational-

behaviour
Contents:

1. Historical Development Overview :Timeline from Classical Theories to

Modern Practices

2. Classical Management Theories - Key features and figures (e.g.,

Frederick Taylor) Human Relations Movement Key studies (e.g.,

Hawthorne Studies) and their implications

3. Models of OB
 Historical Development of OB Overview:
from Classical Theories to Modern
Practices
• Early 1900s: Classical Management Theories (e.g., Taylorism) focused on improving efficiency
through scientific management principles, such as time studies and task specialization.
• 1920s-1930s: Human Relations Movement (Hawthorne Studies) emphasized the importance of
social factors and employee morale in influencing productivity, challenging the purely rational
approach of classical management theories.
• 1950s-1960s: Behavioral Science Approach (integration of psychology) incorporated
psychological principles and theories into the study of organizational behavior, providing a
more comprehensive understanding of employee motivation and behavior.
• 1970s-Present: Modern Practices (focus on diversity, technology, globalization, AI) have
adapted to the changing nature of work, emphasizing the importance of managing diversity,
leveraging technology to enhance organizational effectiveness, and navigating the challenges
of globalization.
Classical Management Theories (Late 19th –
Early 20th Century)
• Classical management theories emerged in response to the industrial revolution, emphasizing
efficiency, productivity, and hierarchical organization.
• Key Contributors: Frederick W. Taylor: Known as the father of Scientific Management, Taylor
introduced methods to improve labor productivity through time and motion studies. He
believed that work tasks could be optimized for efficiency, leading to increased output.
• Henri Fayol: Fayol proposed administrative theory, principles of management that included
planning, organizing, leading, and controlling. His work emphasized the importance of a
structured approach to management.
• Max Weber: Introduced Bureaucratic Theory, which advocated for a structured organizational
hierarchy and clear rules. Weber believed that bureaucracy was essential for ensuring
efficiency and fairness in organizations.
• Key Features: Task specialization and division of labor, Emphasis on efficiency and
productivity, Formalized hierarchy and clear lines of authority.
Human Relations Movement (1930s – 1950s)

•Emphasized the importance of social relationships and employee satisfaction in enhancing

productivity.
•Key Contributors: George Elton Mayo: Conducted the Hawthorne Studies at Western Electric’s
Hawthorne Works. His research revealed that social factors significantly impact worker
productivity.
•Fritz R:Collaborated with Mayo on the Hawthorne Studies, contributing to insights about employee
morale and group dynamics.
•Key Findings
•Productivity improved when workers felt valued and received attention from management
•Workers are more motivated when organized into teams and when effective communication exists
between employees and management.
•Human Relations Approach: Importance of teamwork and social interactions among employees.
•Recognition of non-economic incentives (e.g., recognition, job satisfaction) as motivators.
•Emphasis on upward communication and dynamic leadership.
Behavioral Science Approach (1960s – 1980s)

•The Behavioral Science Approach integrated insights from psychology, sociology, and
anthropology into organizational studies. It focused on understanding human behavior within
organizations more comprehensively.
•Key Contributors:
•Abraham Maslow: Developed Maslow's Hierarchy of Needs, which posits that human motivation is
driven by a series of needs ranging from physiological to self-actualization. This framework helped
managers understand employee motivations beyond financial incentives.
•Douglas McGregor: Introduced Theory X and Theory Y, contrasting two views of employee
motivation—Theory X assumes employees are inherently lazy, while Theory Y assumes they are
self-motivated and seek responsibility.
•Key Features:
•Focus on individual behavior, group dynamics, and organizational culture.
•Use of qualitative research methods to study employee attitudes and behaviors.
Modern Practices (1990s – Present)

•Modern practices in OB reflect ongoing changes in workplace dynamics due to globalization,

technological advancements, and evolving workforce demographics.
•Key Trends:
•Technology Impact: The integration of technology in workplaces has transformed communication,
collaboration, and performance assessment. Data analytics is increasingly used to inform HR
decisions.
•Diversity Management: There is a growing emphasis on creating inclusive workplaces that value
diversity. Organizations recognize that diverse teams contribute to innovation and better decision-
making.
•Employee Well-being Programs: Modern organizations prioritize mental health and work-life
balance through well-being initiatives aimed at enhancing overall employee satisfaction.
•Current Challenges:
•Adapting to remote work dynamics and emerging AI practices
Modern Practices (1990s – Present)

•Modern practices in OB reflect ongoing changes in workplace dynamics due to globalization,

technological advancements, and evolving workforce demographics.
•Key Trends:
•Technology Impact: The integration of technology in workplaces has transformed communication,
collaboration, and performance assessment. Data analytics is increasingly used to inform HR
decisions.
•Diversity Management: There is a growing emphasis on creating inclusive workplaces that value
diversity. Organizations recognize that diverse teams contribute to innovation and better decision-
making.
•Employee Well-being Programs: Modern organizations prioritize mental health and work-life
balance through well-being initiatives aimed at enhancing overall employee satisfaction.
•Current Challenges:
•Adapting to remote work dynamics and emerging AI practices
Modern Practices (1990s – Present)
Autocratic Model of OB
• Centralized decision-making by top management
• Authority-driven, with strict obedience expected from
employees
• Minimal employee involvement in decision-making
• Maintaining control over employees and operations
• Enforcing obedience to orders and instructions
Advantages
• Efficient decision-making, especially in crises
• Clear direction for employees
Disadvantages
• Low employee morale and job satisfaction
• Resistance to change due to fear of repercussions
• Outdated approach in modern organizations valuing
engagement
Custodial Model of OB

• Emphasizes job security, good salaries, and

benefits to foster employee loyalty.
• Management Role: financial incentives
• Teamwork Impact: competition among
employees, potentially hindering collaboration.
Advantages
• Provides economic security for employees.
• Motivates performance through financial
incentives.
Disadvantages
• May discourage teamwork in favor of individual
performance.
• Relies on organizational financial strength to
maintain employee motivation.
Supportive Model of OB

• The focuses on creating a positive work environment

where employees feel valued and motivated.
• Leadership Focus: supportive atmosphere.
• Employee Engagement: decision-making and open
communication.
• Motivation through Support
Advantages
• Enhanced Employee Morale
• Fosters Innovation
Disadvantages
• Time-Consuming Implementation
• Slower Decision-Making.
 Collegial Model of OB

• Emphasizes teamwork and collaboration, where

managers and employees work together as partners
• Partnership Approach
• Shared Decision-Making
• Teamwork and Collaboration
Advantages
• High Job Satisfaction
• Enhanced Creativity
Disadvantages
• Potential for Conflict
• Slower Decision-Making
System Model of OB

• Interconnected open systems that interact with the

environment
• Teamwork and cooperation across departments
• Promotes agility and responsiveness to external
changes
Advantages
• Enhanced collaboration through interdepartmental
cooperation
• Improved adaptability to external challenges and
opportunities
Disadvantages
• Complexity in managing interconnected systems
• Potential for miscommunication among departments
Models of OB
Conclusion

1. The evolution of OB has been influenced by significant historical events,

particularly the Industrial Revolution.

2. Modern organizations to adapt to changing work environments, including

globalization and technological advancements.

3. Understanding the models is essential for modern organizations to effectively

adapt to changing work environments, including globalization and technological

advancements, thereby enhancing productivity and employee satisfaction.

Questions & Discussion
References:
1.Robins & Sanghii – Organizational Behaviour, Pearson Education, New Delhi.

2.Aswathapa.K, Organisational Behavior, Himalaya. Publishing house.

3.https://openstax.org/details/books/organizational-behavior

4.https://www.mygreatlearning.com/academy/learn-for-free/courses/organizational-

behaviour
Contents:
1.Introduce the S-O-B-C model as a framework for
understanding organizational behavior.

1.Relevance in predicting and managing employee behavior to

enhance organizational performance.
Understanding the S-O-B-C Model

The S-O-B-C model is a framework used

to analyze and understand

organizational behavior.

It suggests that behavior in

organizations is influenced by four key

elements:

1.Stimulus (S)

2.Organism (O)

3.Behavior (B)

4.Consequence (C)
Stimulus (S)

The stimulus refers to any internal or

external factors that trigger a
response in individuals.
• Organizational Culture
•Leadership Styles
•Job Demands and Characteristics
•Workplace Environment
•employee engagement.
•Feedback Mechanisms
•Recognition and Rewards
•External Market Factors
Organism (O)

The "Organism" represents the individual

within the organization, encompassing their
personality traits, values, beliefs, and cognitive
processes that influence their behavior.
Personality Traits
•Values
•Beliefs
•Motivation
•Emotional Intelligence
•Cognitive Styles
•Cultural Background
•Work Ethic
Behavior (B)

"Behavior" refers to the actions exhibited by

individuals in response to stimuli within the
organizational environment.
•Collaboration
•Communication
•Style of Problem-Solving
•Adaptability
•Feedback Reception
•Conflict Resolution
•Goal Setting
•Mentoring
Questions & Discussion
Contents:

1. Organizational Structure

2. Basics of Organizational structure

3. Types of Structures: Functional, divisional, matrix, and flat structure

 Organizational Structure
System that outlines how activities are defining roles, responsibilities, directed in an
organization.
Elements of Organizational Structure
Types of Organizational Structure
Functional Structure

A functional structure organizes a

company based on specialized functions or

roles, such as marketing, finance, and

human resources

•Work Specialization

•Departmentation

•Chain of Command

•Span of Control

•Centralization/Decentralization

•Formalization
Divisional Structure

The divisional structure organizes a company

into semi-autonomous units or divisions based

on products, services, or geographical locations.

•Division Autonomy

•Market/Product Focus

•Decentralized Decision-Making

•Flexibility in responding to market changes.

 Matrix Structure

A matrix structure combines elements of both functional

and divisional structures.

•Dual Authority

•Resource Sharing

•Greater flexibility

•Responsiveness to projects.

•Enhanced communication across departments.

•Potential for confusion due to dual reporting lines.

•Increased complexity in management..

Flat Structure

A flat structure minimizes levels of management, promoting a

more horizontal organization

•Reduced Hierarchy

•Employee Empowerment

•Greater autonomy

•Faster decision-making

•Encourages innovation and employee engagement

•May lead to role confusion without clear authority lines.

•Can be challenging to manage as the organization grows.

 Network Structure

Relies on outsourcing various functions while maintaining

core operations internally.

•Core Business Focus

•Collaborative Relationships

•Flexibility in scaling operations up or down Access to

specialized skills without permanent hires.

•Dependency on external partners

•Challenges in maintaining control over outsourced

functions.
 Hierarchical Structure

A hierarchical structure features a clear chain of command with

multiple levels of management

•Defined Levels of Authority

•Clear reporting relationships at each level.

•Centralized Decision-Making

•Clarity in roles and responsibilities.

•Easier management

•Slower decision-making processes due to bureaucracy.

•Potential for reduced employee morale

 Team-Based Structure

A team-based structure organizes employees into cross-

functional teams that work collaboratively towards shared

goals

•Cross-functional Teams

•Groups composed of members from various departments.

•Shared Leadership

•Enhanced creativity through diverse perspectives.

•Improved problem-solving capabilities

•Potential for conflict if team dynamics are not managed well.

•Strong communication skills among team members.

 Conclusion

• Organizational structure depends on the company's size, industry, goals, and culture.

• Leaders must carefully assess their unique circumstances to select or design a structure

that aligns with their strategic objectives.

• By understanding the nuances of each structure, organizations can position themselves

for success in an increasingly competitive landscape.

• The choice of organizational structure is crucial for a company's effectiveness and

adaptability in a dynamic business environment.

Questions & Discussion
Contents:

1. International Dimensions of OB

2. Global Perspectives: Cultural diversity, cross-cultural communication,

and their effects on organizational behavior.

International Dimensions of OB

1. International dimensions of organizational behavior study how cultural differences influence

management practices, employee behavior, and organizational effectiveness in a global
context.
2. Cultural differences influence management practices, employee behavior, and organizational
effectiveness in a global context.
3. Cultural Differences: Variations in values, beliefs, and behaviors across different cultures that
impact organizational dynamics.
4. Communication: The role of language and non-verbal cues in effective cross-cultural
interactions.
5. Motivation: Understanding how motivational theories differ across cultures and their
implications for employee engagement.
6. Leadership Styles: Exploration of how leadership approaches vary globally and their
effectiveness in diverse cultural settings.
 Cultural Diversity in Organizations
Cultural diversity refers to the variety of cultural or ethnic
groups within a society or organization
•Encompasses differences in race, ethnicity, gender, age,
•Profound impact on employee engagement, innovation,
and overall performance
•Positive Impact
•Fosters innovation and creativity through varied
perspectives
•Enhances market competitiveness by understanding
diverse customers
•Promotes employee satisfaction and retention through
inclusivity
•Provides access to a broader range of skills and
experiences
Benefits of understanding Cultural
Diversity in Organizations

• Enhanced Innovation: Diverse perspectives lead to creative problem-solving.

• Improved Market Insight: Better understanding of global customers enhances

competitiveness.

• Increased Employee Satisfaction: A culturally inclusive environment fosters higher morale

and retention.

• Mitigation of Communication Barriers: Language differences can lead to misunderstandings.

• Cultural Misunderstandings: Different norms may result in conflicts among team members.

• Integration Difficulties Management: Managing diverse teams requires intentional efforts to

foster inclusivity.
 Cross-Cultural Communication

• Cross-cultural communication is the

process of recognizing both

differences and similarities among

cultural groups to effectively engage

within a given context.

• It involves interacting with people

from different cultural backgrounds

while being aware of culturally

specific norms and values.

Challenges Faced in Cross-Cultural
Communication
• Language Barriers
• Assumption of Similarities.
• Nonverbal
Misinterpretations
• Preconceptions and
Stereotypes
• High Anxiety
• Embrace Open-Mindedness
• Develop Cultural
Awareness
• Practice Active Listening
• Adapt Communication
Styles
Strategies for Effective Cross-cultural
Communication
Conclusion

• Understanding the international dimensions of Organizational Behavior (OB) is

essential in today’s globalized environment.

• Cultural diversity can enhance creativity and innovation but also presents

challenges in communication and collaboration.

• By investing in cultural awareness and effective cross-cultural communication

strategies, organizations can foster an inclusive workplace

Contents:

1. Limitations and Opportunities of OB OB as a field

2. Criticisms and Opportunity Group Discussion

Contents to be discussed:

1. One group will argue for the limitations and criticisms of OB, while the

other will focus on opportunities.

2. Each group will:

• Prepare arguments supporting their assigned perspective.

• Use examples from real-world cases or theoretical frameworks

discussed earlier.
Areas of Challenges and Opportunities in
OB
Emerging Challenges and Opportunities
of OB
Contents:

1. Future of Organizational Behavior

2. Trends and Predictions: The evolving nature of work

environments and the role of technology.

Trends and Predictions in OB

1.Remote and Flexible Work

2.Rise of Artificial Intelligence (AI)

3.Emphasis on Emotional Intelligence

4.Focus on Employee Well-being

5.Diversity, Equity, and Inclusion (DEI)

6.Sustainability and Corporate Social Responsibility (CSR)

7.Data-Driven Performance Management

8.Agility and Adaptability

Trends Influencing the Future of Work
OB

• Evolving Nature of Work Environments and the Role of Technology

• Workplaces are undergoing significant transformations, driven by advancements

in technology and changing employee expectations.

• Empowerment and Distributed Leader

• Innovation through Diversity

• Technological Integration

• Focus on Employee Well-Being

• Sustainability and Ethical Practices

Impact of Technology on Work
Environments

• Increased Flexibility:

• Enhanced Communication

• Streamlined Workflows

• Improved Productivity

• Optimized Space Management

• Sustainability Initiatives

• Employee Well-Being

• Dependency and Challenges

• Job Creation and Transformation

Conclusion

• Technology has fundamentally transformed work environments by enhancing

flexibility, communication, and productivity.

• Organizations continue to adapt the changes; it is essential to prioritize employee

well-being and ongoing training to harness the full potential of technological

advancements.

• Embracing these innovations will not only foster a more resilient workforce but also

position organizations for sustained success in an ever-evolving landscape.

 Case Analysis

Future of Organizational Behavior

References:
1.Robins & Sanghii – Organizational Behaviour, Pearson Education, New Delhi.

2.Aswathapa.K, Organisational Behavior, Himalaya. Publishing house.

3.https://openstax.org/details/books/organizational-behavior

4.https://www.mygreatlearning.com/academy/learn-for-free/courses/organizational-

behaviour