CM 8 - Organisational Dynamics (Syllabus)
UNIT I Organizational behaviour—concepts, meaning, nature, scope features of [Link] and
other disciplines
UNIT II Individual behaviour—basic psychological process—personality, Determinants of
personality—personality traits—perception, factors affecting perception—learning, theories of
learning—social learning. Motivation—theories of motivation (Maslow’s, Hertzberg, Mc Greger,
X and Y theory) financial and non financial motivation.
UNIT III Group—concept of group dynamics—features of group—types of group behaviour—
formal and informal group behaviour—stages of group development— group moral—group
norms—group cohesiveness.
UNIT IV Leaderships- types—theories of leadership ( Trait theory, Michigan studies and
Fideler’s contingency model) modern approach to leadership theories—leadership styles.
UNIT V Stress management—meaning, types of stress—consequences of work stress—causes
of stress—Conflict, types of conflicts, conflict resolution— Organisational development—
meaning, need, benefits and limitations of OD—steps in OD. Organizational changes.
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Organisational Behaviour An Introduction
Organisational Behaviour (OB) is the study of how people behave in an organization. It studies the
thoughts, feelings, attitudes and actions of employees while they work in an organization. It helps
managers understand employees and manage them effectively. OB is useful in all types of organizations
such as business, government offices, schools and service organizations.
According to Keith Davis “Organisational Behaviour is the study and application of knowledge about
how people act within organizations”.
According to Greenberg and Baron “Organisational Behaviour is the systematic study of human
behaviour in organizations and the application of this knowledge to improve organizational effectiveness”.
Concept of Organisational Behaviour
The concept of OB is based on understanding how individuals and groups behave in the workplace and
how this behaviour affects the organization. Organizations work through people. Therefore, managers
must understand the behaviour of individuals and groups to achieve organizational goals.
Organisational Behaviour studies many important issues in the workplace such as:
Individual perception and attitudes
Learning and personality differences
Motivation of employees
Team building
Decision making
Communication in organizations
Power and leadership
Negotiation and conflict management
Job and organization design
Managing organizational change
Organisational Behaviour (OB) is the study of how people behave in an organization. It focuses on
understanding the actions, attitudes, feelings and behaviour of employees at work. Every organization is
made up of people, and the success of the organization largely depends on how these people work
together. Therefore, understanding human behaviour in the workplace is very important for managers.
Organisational Behaviour helps managers understand why employees behave in different ways. Some
employees are hardworking and motivated, while others may need encouragement and guidance. OB
studies these differences and helps managers manage employees more effectively. It also helps in
improving communication, teamwork and leadership within the organization.
OB studies behaviour at different levels such as individual level, group level and organizational level. It
examines how individuals behave, how groups work together and how the entire organization functions.
By understanding these behaviours, managers can create a better work environment.
Organisational Behaviour also helps organizations improve productivity and employee satisfaction. When
employees feel respected, motivated and supported, they work more efficiently. Thus, OB plays an
important role in achieving organizational goals and maintaining a healthy work environment.
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Need for a New Management Perspective
Earlier, many managers believed that employees only work for money and are generally lazy. But modern
thinking says that human behaviour is complex and people have different needs, attitudes and
expectations.
Therefore, managers need a new perspective based on research and understanding of human behaviour
to manage employees effectively.
Importance of People in Organizations
People as Organizations
Organizations are made up of people. Without people, organizations cannot exist.
People as Resources
Employees are valuable assets of an organization. They make decisions, solve problems and help
the organization grow.
People as People
Employees expect not only salary but also satisfaction, respect and opportunities to learn new
skills.
Nature/Features of Organisational Behaviour (OB)
1. Separate Field of Study
Organisational Behaviour is an independent field of study that focuses on understanding human
behaviour in organizations. It studies how employees think, feel and act in the workplace.
2. Interdisciplinary Approach
OB uses knowledge from many subjects such as psychology, sociology, anthropology and
economics to study human behaviour at work. These subjects help managers understand employees
better.
3. Applied Science
OB applies research and theories to solve practical problems in organizations like motivation,
communication and conflict. It helps managers handle real workplace issues effectively.
4. Normative Science
OB not only studies behaviour but also suggests how managers should manage employees to
achieve organizational goals. It gives guidelines for improving employee performance and
satisfaction.
5. Humanistic and Optimistic Approach
OB treats employees as valuable human beings with feelings, needs and expectations. It believes
that employees can grow and contribute positively to the organization.
6. Total System Approach
OB studies the organization as a whole system by considering individuals, groups, structure and
environment. All these factors together influence the functioning of the organization.
7. Focus on Human Behaviour
OB mainly studies the attitudes, emotions and behaviour of employees in the workplace.
Understanding these behaviours helps managers manage people better.
8. Goal Oriented
OB helps organizations achieve their goals by improving employee cooperation and performance. It
ensures that both individual and organizational goals are achieved.
9. Improves Organizational Effectiveness
By understanding employee behaviour, OB helps increase productivity and organizational success. It
also helps in building better teamwork and communication.
10. Helps in Better Management
OB helps managers manage people effectively and create a healthy working environment. It
improves leadership, decision making and employee relationships.
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OB as an Interdisciplinary Approach
1. Psychology
Psychology is the study of human behaviour and mental processes. It helps to understand why
people behave in a particular way. Psychology studies factors like motivation, perception, personality
and learning. These factors influence how employees behave in the workplace. In OB, psychology
helps managers understand individual employee behaviour.
Example: A manager gives bonuses and recognition to employees to motivate them to work harder.
2. Sociology
Sociology is the study of social behaviour and relationships among people in society. It focuses on
how individuals interact with each other in groups. Sociology helps to understand group behaviour
and social systems. In organizations, employees work together in teams to complete tasks.
Sociology helps managers understand teamwork, cooperation and group relationships.
Example: Employees in a company work together as a team to complete a project successfully.
3. Social Psychology
Social psychology studies how people behave in social situations. It explains how individuals
influence and interact with others. It mainly focuses on behaviour of people when they are part of a
group. It studies communication, leadership and group influence. In OB, it helps managers
understand how group pressure and leadership affect employee behaviour.
Example: In a meeting, employees may support an idea because most team members agree with it.
4. Anthropology
Anthropology is the study of human culture, beliefs and customs. It helps to understand the cultural
differences among people. Employees in organizations may come from different cultural
backgrounds. Anthropology helps managers respect and manage these differences. This helps in
creating harmony in the workplace.
Example: A multinational company trains employees to respect different cultures and traditions of
colleagues.
5. Economics
Economics studies how resources are used and how organizations operate efficiently. It focuses on
production, cost, profit and resource management. Organizations must manage resources carefully
to survive and grow. Economics helps managers make better financial and business decisions. In
OB, it helps in improving productivity and efficient use of resources.
Example: A company reduces unnecessary expenses to increase profit and efficiency.
6. Political Science
Political science studies power, authority and conflict in organizations. It explains how power and
influence affect decision making. It also studies how conflicts arise and how they can be managed.
Political science helps managers understand power relationships among employees. It also helps in
maintaining balance and fairness in organizations.
Example: A manager resolves a conflict between two employees by fairly listening to both sides and
making a decision.
7. Management
Management is the process of planning, organizing, directing and controlling organizational activities.
OB helps managers understand employee behaviour and improve management practices. It helps in
leadership, motivation and decision making. Management uses OB knowledge to manage
employees effectively.
Example: A manager uses motivational techniques to improve employee performance
So, Organisational Behaviour is an important field that helps in understanding human behaviour in
organizations. It combines knowledge from many disciplines such as psychology, sociology, anthropology,
economics and political science. These disciplines help managers understand employees, groups and
organizational systems better. By using this knowledge, managers can improve communication,
teamwork, motivation and leadership. Therefore, the study of OB helps organizations work more
effectively and achieve their goals successfully.
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Importance and Scope of Organisational Behavior (OB)
1. Understanding Human Behaviour
Organisational Behaviour helps managers understand why employees behave in a certain way at
work. It studies employees’ attitudes, emotions and reactions in different situations. Understanding
behaviour helps managers deal with employees more effectively. It also helps in improving
relationships between managers and workers. This knowledge helps increase job satisfaction and
productivity.
Example: A manager understands that an employee is stressed due to workload and reduces the
workload to improve performance.
2. Individual Level
At the individual level, OB studies the behaviour of each employee in the organization. Every
person has different personality, attitudes and abilities. OB helps managers understand these
differences among employees. This helps managers assign suitable tasks to the right person.
Understanding individuals improves employee performance and satisfaction.
Example: A manager gives creative work to an employee who has strong creative skills.
3. Interpersonal Level
Interpersonal level means interaction between two or more people in the workplace. OB studies
relationships between employees, managers and coworkers. Good interpersonal relationships
improve cooperation and teamwork. It also helps reduce misunderstandings and conflicts. Healthy
relationships create a positive work environment.
Example: Two employees cooperate and support each other to complete a project on time.
4. Group Level
Employees often work in groups or teams in organizations. OB studies how groups behave and
function in the workplace. It explains group norms, leadership, communication and teamwork.
Understanding group behaviour helps managers build effective teams. Strong teamwork improves
productivity and morale.
Example: A sales team works together to achieve the monthly sales target.
5. Inter-Group Level
Organizations have many departments such as marketing, finance and production. OB studies the
relationship between these different groups. These groups may cooperate or sometimes compete
with each other. Understanding these relationships helps managers coordinate activities better. It
also helps reduce conflicts between departments.
Example: The marketing department works with the production department to launch a new
product.
6. Controlling and Directing Behaviour
Managers need to guide employees to achieve organizational goals. OB helps managers
understand how to control and direct employee behaviour. It provides methods such as leadership,
communication and supervision. Proper guidance helps employees perform their duties effectively.
This improves overall organizational performance.
Example: A supervisor guides workers on how to complete tasks correctly in a factory.
7. Use of Power and Authority
Managers have certain authority and power in organizations. OB explains how this power should
be used properly and responsibly. Proper use of authority helps maintain discipline and order. It
also helps in making quick decisions in the workplace. Balanced use of power benefits both
employees and the organization.
Example: A manager assigns duties and ensures that employees follow company rules.
8. Leadership
Leadership is the ability to influence and guide employees. OB studies different leadership styles
and their effects. Managers can choose the most suitable leadership style for different situations.
Good leadership motivates employees and builds trust. It also improves employee morale and
performance.
Example: A team leader encourages employees and appreciates their good work.
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5.2 BBA - LLB/Organisational Dynamics/Module-1/ Notes by Sanil M
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9. Communication
Communication is the process of sharing information and ideas. OB studies how communication
works in organizations. Good communication helps employees understand their duties clearly. It
reduces misunderstandings and conflicts in the workplace. Effective communication improves
teamwork and coordination.
Example: A manager explains company goals clearly during a staff meeting.
10. Organisational Climate
Organisational climate refers to the overall working environment of the organization. It includes
relationships, leadership style and working conditions. OB helps create a positive and supportive
workplace environment. A good climate increases employee motivation and satisfaction. It also
improves productivity and cooperation.
Example: A company that provides a friendly workplace and employee support programs.
11. Organisational Adaptation
Organizations must adapt to changes in technology, market and environment. OB helps managers
handle these changes effectively. It helps employees understand and accept new policies or
systems. Managing change properly reduces resistance from employees. This helps organizations
survive and grow in a changing world.
Example: A company trains employees to use new computer software when the system is
upgraded.
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5.2 BBA - LLB/Organisational Dynamics/Module-1/ Notes by Sanil M
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