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What is an Organization

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What is an organization? An organization is defined as a collection of people who work  together to achieve a wide variety of goals. Organizational behavior is defined as the actions and attitudes of people in organizations. The field of organizational behavior (OB) covers the body of  knowledge derived from these actions and attitudes. It can help managers understand the complexity within organizations, identify problems, determine the best ways to correct them, and establish whether the changes would make a significant difference. The Meaning of Organizational Organizational Behavior Organizational behavior (OB) is the study of human behavior in organizational settings, how human behavior interacts with the organization, and the organization itself.

Definition Acc to to Stephen P Robbins “A field of study that investigates the impact that individuals, groups,and structure have on behavior within organizations, for thepurpose of applying such knowledge toward improving an organization's effectiveness”.  effectiveness”.   Keith Davis defined “Organizational Behavior is the study and application of knowledge about how

 people as individual or as groups act within organizations.” organizations.” 

Fundamentall Concepts of Organizational Behavior Fundamenta In every field of social science, or even physical science, has a philosophical foundation of  basic concepts that guide its development. There are some certain philosophical concepts in organizational behavior also. The concepts are-

Individual differences: 

Every individual in the world is different from others. This idea is supported by science. Each person is different from all others, probably in million ways, just as each persons DNA profile is different. The idea of individual difference comes originally from psychology. From the day of birth, each person is unique, and individual experiences after birth tend t end to make people even more different. Perception: 

Peoples perceptions are also differ when they see an object. Two people can differently present a same object. And this is occurring for their experiences. experiences. A person always organizes and interprets what he sees according to his lifetime of experience and accumulated value. value. Employees also see work differently for differ in their personalities, needs, demographics demographics factors, past experiences and social surrounding.


A whole person: 

An employee‟s personal life is not detached from his working life. As an example, A women who attend the office at 8:30 AM is always anxious for her children‟s school time (if her  children able to attend the school or not). As a result, its i ts impact falls on her concentration that means her working life. For this reason, we cannot separate it. So manager should treat an employee as a whole person.

Motivated behavior: 

An employee has so many needs inside him. So, they want to fulfill those needs. That‟s why ; they had to perform well in the t he organization. Some motivations are nee needed ded to enrich the quality of work. A path toward increased need fulfillment is the better way of enriches the quality of work.

Desire for involvement: 

Every employee is actively seeking opportunities at work to involve in decision-making problems. They hunger for the chance to share what they know and to learn from the experience. So, organization should provide them a chance to express their opinions, ideas and suggestion for decision-making problem. A meaningful involvement can bring mutual benefit for both parties. Value of the person: 

An employee wants to be treated tr eated separately from other factor of production (land, capital, labor). They refuse to accept the old idea that they are simply treated as economic tools because they are best creation of almighty Allah. For this reason, they want to be treated with carrying respect, dignity and other things from their employers and society. The nature of organization 

There are two assumptions as to nature of organization. Social Systems: 

Organizations are social systems and governed by social and psychological laws. They have social roles and status. Their behavior influenced by their group‟s individual drives. Organization environment in a social system is dynamic. All parts of the system are interdependent. Mutual interest: 

In order to develop the organization behavior mutually of interest organizations and people is necessary. Organizations Organizations need people and people in tern need organizations. People satisfy their needs through organization and organization accomplish their goal through people.


Ethics: In order to attract and retain valuable employees in an era in which good workers are constantly required away, ethical treatment is necessary. To succeed, organization must treat employees in an ethical fashion. Every Company is required to establish codes of ethics, publicized statements of ethical values, provided ethics training, rewarded employees for notable ethical behavior, publicized positive role models, and set up internal procedures to handle misconduct.


Organizational behaviour behaviour is becoming more important due to the rapidly changing business cultures and environments. The employee‟s nature, reaction and response to different situations of organization also becoming an important part in today‟s scenario. So manager  should concentrate on such changes of workforce. Organizational Behaviour helps to understand different activities and actions of people in organization. Also it helps to motivate them. People, Environment, Technology and structure are the main four elements of organizational behaviour. The scope of this mix is the scope of  OB. The scope of the organizational behaviour is as under: a. Elements of the organizational behaviour b. Impact of personality on performance c. Motivation of employees of organization d. Leadership e. Structure of teams and groups f. Perception g. organizational structures: Their  Their Study and Development h. Individual behaviour, Group behaviour, power and politics, attitude and learning i. Perception  j. Organization Design Design k. k.  Job design l. Culture and Environment factors m. Management of change, conflict and stress n. Organizational development


o. Study of emotions p. Transactional analysis This is the scope of Organizational behaviour. In the current scenario Organizational Behaviour i.e. behaviour of employees in organization is becoming main thing in organization management.

Factors influencing Organization Structure: The following factors determine the organization structure: 1.  Size of the Unit: It indicates the scale of operation viz small, medium and large. To iintroduce ntroduce new technology in business enterprise the activity has to be expanded. The size of the organization is also determined by the capital employed in the unit. Another factor which determines the size of the organization is men employed. The nature of business unit also determines the size and organization structure. 2.  Job Design: The bricks that develop an organization structure are jobs. 3.  Grouping of Activities: Grouping of activities are essential to achieve co-ordination. Eg Production Department, Finance Department…………. 


manager anager is called span of  4. control. Span of Control: The number of persons to be managed by each m 5.  Delegation of Authority: The right to make decisions without having to obtain approval from a higher up.

Line or Military type of Organization: Line or military type of organization is the oldest type of organization. This type is also known as scalar organization. In line organization, each department is generally a complete set-sustaining unit. Each department is under the control of a departmental head who is completely responsible for organizing the department. Line type of organization forms a line from the very bottom of the organization structure.

Advantages of Line Organization: 1.  Simplicity: It is easy to establish and operate. It is also easy to explain to the workers. 2.  Fixed Responsibility: Every member of the organization knows his exact function, to whom he is responsible and who are responsible to him. 3.  Unity of control: There is unity of command and control according to which an employee can receive orders only form form one superior. Subordinates are responsible to only only one superior. 4.  Discipline: As the responsibility is by single person it ensures strong discipline among the employees. 5.  Co-ordination: As all the activities relating to one department are managed by one individual it is possible for co-ordination. 6.  Defined Authority: As the powers and authorities of various persons are defined, the conflict in their powers and authorities is avoided.



1.  Lack of specialization: As one person looks after all the work relating to his department, there is no scope for specialization. 2.  Overloading: An executive is overloaded with work and hence he may not be in a position to direct and control the efforts of his subordinates. 3.  Limited Communication: There is no communication from subordinates upwards and the workers should follow the orders of superiors, without expressing any opinion about the orders communicated to them. 4.  Lack of Co-operation: One executive controls various activities it sometimes result in lack  of co-operation and team spirit.

Functional Organization: Under functional type of organization organization identical functions of of various departm departments ents in an organization are performed by a specialist. The workers under functional type of organization receive instructions from a specialist in each of several supervisory functions which are assigned to the different specialists.

Advantages: 1.  Specialization: It ensures maximum use of the principle of specialization at every work  point. 2.  Efficiency: Since the workers have to perform a limited number of function, their efficiency would be very high. 3.  Relief to Executives: Since the instructions from specialists flow directly to the lower levels the line executives are free from worries about the technical problems faced by workers. 4.  Flexibility: Any change in the organization can be introduced without disturbing the whole organization and hence there is an element of flexibility in this type of organization.

Disadvantages: 1.  Conflict amongst Foremen: Under this type foreman of equal rank will be many in number and this may lead to conflict among them. 2.  Discipline: Since workers have to work under different bosses, it is difficult to maintain discipline among them. 3.  Lack of Fixed Responsibility: If there is any unsatisfactory progress, it is difficult for the top management to fix responsibility. 4.  Expensive: As a large number of specialists to be appointed under this system, it is very expensive and small firms cannot afford it.

Line and Staff Organization:

In a line and staff organization, the work of administration of business business units is divided into two b broad road divisions, viz, the staff which is responsible for planning and line for the the actual execution of the


work. The staff is attached to the line to assist the line in discharging its duties efficiently. The line and staff organization is based on the principle of specialization.

Advantages; 1.  Expert Advice: The staff officers provide expert advice and guidance to line officers and by this, the enterprise as a whole gets benefit. 2.  Sound Decision: The decisions are made by experts and hence, there is a possibility of  making sound managerial decisions. 3.  Opportunities for Advancement: A greater variety of responsible jobs are available and this provides more opportunities for advancement of capable workers.

Disadvantages: 1.  Confusion: If the pattern of authority relationship between line and staff executives is not clearly indicated, there may be considerable confusion throughout the organization. 2.  Advice Ignored: As the staff officers lack authority to put their their recommendations into practice, their advice may be ignored by the line executives.


It requires appointment l arge point large number experts it is more 3.  Conflict Expensive: 4. thea view ofofline and staff differexpensive. there will be between linethe and staff: As of conflict between the two.

Matrix Organization: This is an organizational structure in which each employee reports to both functional and group manager. This is a “Multiple command System” where workers will have two bosses. It helps in bringing together the specialized skills required to solve a complex problem. Duplication of work is avoided. Workers will not easily adopt to a matrix system and there will be danger of conflicting directions and ill-defined responsibility.

A committee is a group of persons taken, elected or selected from the entire organisation to do some assigned work collectively. There are various types of committees divided on the basis of time, function, character and structure. On the basis of time, there are two types of committees like permanent committee and temporary committee. A permanent body formed for a specific purpose is called a permanent committee or standing committee. The committee formed for a special purpose is called a temporary or adhoc committee. On the basis of functions, f unctions, there are two types of committees called managerial committee and non-managerial committee. The former denotes the formation of a committee which undertakes managerial functions like finance committee and purchase, committee. The later denotes a committee, which does not take managerial functions. On the basis of structure, there are two types of committees like formal committee and informal committee. The committees established as part of organisation structure are called


formal committees and the committee, which does not form a part of organization structure, is called informal committee. On the basis of character, there are two types of committees like line committee and staff  committee. Line committee is a committee, which is vested with the power to decide and execute the decision. Staff committee is an advisory committee meant to render advices in different fields.

Contributing disciplines to the Organisational Behaviour field Organizational behaviour is an applied behavioural science that is built upon contributions from a number of behavioural disciplines. The predominant areas are psychology, sociology, sociology, social psychology, anthropology, and political science  Psychology -  Psychology is the science that seeks to measure, explain, and sometimes change the behaviour of  humans and other animals.  -  To use psychological and organizational theory and research to improve organizational effectiveness and the work life of all individuals. -  psychologists concern themselves with studying and attempting to understand individual - 

behaviour learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making process, performance appraisals, attitude measurement, employee selection techniques, work design and job stress  

Sociology -  Sociologists study the social system in which individuals fill their roles  -  Sociology studies people in relation to their fellow human beings to iimprove mprove organizational performance. -  Study of group behaviour in organisations, group dynamics, design of work teams, tea ms, organisational culture, formal organisational theory and structure, organisational technology, communications, power and conflict Social psychology -  An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.  -  Major area: change – how to implement it and how to reduce barriers to its acceptance   -  Study areas: measuring, understanding and changing attitudes, communication patters, building trust, the ways in which group activities can satisfy individual needs, group decision-making processes Anthropology -  The study of societies to learn about human beings and their activities.  -  Study on culture and environment has helped us understand differences in fundamental values, attitudes, and behaviour between people in different countries and within different organisations Political science -  The study of the behaviour of individuals and groups within a political environment  -  Study areas: structuring of conflicts, allocations of power, how people manipulate power for individual self-interest


  Elements of Organizational Behavior: Organizational behavior has its elements on the requirements of the OB study. They are identified as follows:

  People: People are the main resources for any organization. It is the individuals constitute the

organization. OB is a field where wher e the study of human beings and their behavior is involved. In an organization people exist both as individuals and in groups. As there is an individual difference existing with respect to perception, personality, motivation and individual learning etc., it is necessary to understand the individual‟s traits and characteristics,. This helps each individual to understand about other individual and his/her behavior.   Structure: Organization is a social system. Any social system has its own structure and could be either formal or informal. The company forms formal organization. Informal organization is formed by the individuals depending on various factors like teamwork that is required to do a particular task, or during the lunch breaks, they form informal groups. As there is a saying, men may come and go but the company goes on forever. So do the individuals in an organization. The organization‟s structure may change due to technology and environment.    Environment: There are two types of environment in which the organization operate. They could be categorized as internal and external. The internal environment acting on an organization are the working environment, individual attitudes etc., and the external environment comprises of the Government rules and procedures, customers of the company etc, thus both the internal i nternal and external environment affects the organization.   Technology: Technology means the materials, equipments and machines and systems with which the individuals work on it. The company purchases for the production and service purpose and this is an important i mportant element of an Organization Behavioral system.

Models of Organizational Behaviour

Every organization has its own fundamental beliefs and values. A model of organizational behavior is based on certain assumptions and beliefs. A model is one that constitutes the belief system. It has the management‟s thoughts, and it affects the management activities inside the organization. As the organizations are different from one another organizational behavioral system is also different from organization to organization. The major models on behavioral philosophies are Autocratic, Autocratic, Custodian, Supportive and Collegial.

Autocratic Model Autocratic model started during the period of Industrial Revolution. It generally focuses on power. There are certain verbal verbal conversation like “always you do like this,” neve neverr do this and you ought to do this work, etc showing “I” dominant nature.  The environment of the autocratic model is very formal. It has the official authority that has been delegated by the „right if command‟ over the individual towards others to whom it applies. In this model the belief is that management knows what is best and the employees will have to listen to the orders and perform the task. The management is involved in the thinking process and the employees


are involved in executing the process. The ultimate result, employees are dependent towards the management. The employees give minimum performance and in turn they return paid in minimum.

The main weakness of this model is high human cost. This model is applicable only in certain conditions.

The Custodial Model They comprehended that the employees did have some power and they wanted to tell many things. They also felt that the employees opposed every idea of management and reacted very badly to them. Employees were full of frustration and there was no co-operation with the management. On the whole the relationship between the management and the employees were not healthy one. Number of welfare programmes were started. These programmes focused on the employees, unions and output, by beginning to take care of the security need of workers. Workers were often given rewards and the benefits for the work done. done. Management also started recognizing the employees work. This leads to strong motivation. The main focus of the custodial model was on the material rewards and security. The entire model acts on a foundation for growth, leading the employees to give better performance. It also made the employees to depend on the organization for all their needs. This model is useful because it focuses on the employee security. securit y.

Supportive Model The supportive model of the Organizational Behavior System emphasis on supportive relationships. The supportive model depends on leadership instead of focusing on the monetary rewards like the custodial model. By having an effective and efficient leader the management helps the employees accomplishing the interest of the organizations. The leader takes the responsibility and motivate the group members. The purpose of this model is to support support the employees job performance. There is a high involvement of task and the employees needs are met in a better way. This model is applicable for all the levels of  management. The only drawback of this model is that it suffers from practical implementation.

Collegial Model Collegial means a body of people who have a common purpose. The emphasizes on the team concepts and is widely applied in all industries. Basically this model is followed in assembly lines. Collegial model focuses on management‟s feeling of having a partnership with the employees. In this model, the employees are recognized highly. Both the management and the employees work together in achieving the organizational goals. Teamwork is the key orientation. The employees give quality performance not because of fear, but because of the intrinsic motivation. They believe in providing high quality standards for the company. This model is based on two principles- self-actualization and self-discipline.


Any model can be applied depending upon the environment and situation that exist in the organization. Ultimately each and every model is built to accomplish certain things. The top managements responsibility is not only to apply the model, but also make it flexible and update the models with respect to its use. Emerging Trends in Organizations

Modern Management Guru, Peter. F. Drucker days that “Organizational Structures are becoming increasingly short lived and unstable”. Following aspects speak about the emerging trends.

  The work culture is changing in every organization, which has adapted latest Information




technology. Job and pattern are changing There is a very high mobility of workers. They move from one job to another for a better prospectus. The concepts of job security is increasing. Part-time contract and self employment workers are increasing as a percent of total employees. Emphasis is on changing technology and entrepreneurship. Every organization is becoming a learning organization. organizati on. Tomorrow‟s office will be small. Much of the work will be done outside the office. “Mutual

  become becomes a vital factor.   Trust” Key factors of stomorrow‟s organization is Intelligence, Information and Ideas.  

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