1.
Introduction to Organizational Behaviour
Every organization, whether it is a business, government institution, hospital, university, or non-profit
organization, depends on people to achieve its objectives. Organizations invest in technology, machinery,
and financial resources, but their most valuable resource is human capital. Therefore, understanding how
people think, behave, communicate, and interact in the workplace is essential for organizational success.
Organizational Behaviour (OB) is the study of human behaviour in organizations. It helps managers
understand why employees behave differently, how groups function, how leadership influences people,
and how organizations can improve employee performance and organizational effectiveness.
In today's competitive business environment, technical knowledge alone is not enough. Managers must
also understand human behaviour to motivate employees, resolve conflicts, improve teamwork, manage
change, and create positive organizational cultures.
2. Definition of Organizational Behaviour
The lecture defines Organizational Behaviour as:
A field of study that investigates the impact that individuals, groups, and organizational structure have
on behaviour within organizations for the purpose of applying such knowledge toward improving an
organization's effectiveness.
Simple Exam Definition
Organizational Behaviour is the systematic study of how individuals, groups, and organizational structures
influence behaviour within organizations to improve organizational performance and effectiveness.
Key Elements of the Definition
The definition highlights three major components:
1. Individuals
OB studies individual behaviour, including:
• Personality
• Attitudes
• Perception
• Motivation
• Learning
• Values
• Emotions
Example:
Two employees with similar qualifications may perform differently because of different personalities or
motivation.
2. Groups
People rarely work alone. Organizations rely on teams and work groups.
OB studies:
• Teamwork
• Communication
• Leadership
• Group decision-making
• Conflict
• Power
• Negotiation
Example:
A project team consisting of members from marketing, finance, and operations working together to launch
a new product.
3. Organizational Structure
Organizational structure influences employee behaviour through:
• Authority relationships
• Job design
• Organizational hierarchy
• Communication channels
• Organizational policies
Example:
A flat organizational structure often encourages innovation and faster communication compared to a highly
bureaucratic structure.
3. Nature of Organizational Behaviour
Organizational Behaviour has several important characteristics.
A. Scientific Study
OB is based on research, observation, and scientific evidence rather than assumptions.
B. Interdisciplinary
OB combines knowledge from several disciplines, including:
• Psychology
• Sociology
• Social Psychology
• Anthropology
• Political Science
• Management
This interdisciplinary approach provides a comprehensive understanding of workplace behaviour.
C. Human-Centred
OB focuses primarily on people and their interactions within organizations.
D. Goal-Oriented
The purpose of studying OB is to improve both individual and organizational performance.
E. Dynamic
Human behaviour changes over time due to experience, technology, organizational culture, and
environmental factors.
4. Scope of Organizational Behaviour
The scope of OB can be understood at three levels.
A. Individual Level
This level focuses on understanding individual employees.
Topics include:
• Personality
• Perception
• Learning
• Motivation
• Attitudes
• Job satisfaction
• Stress
B. Group Level
This level studies how people interact in groups.
Topics include:
• Teamwork
• Communication
• Leadership
• Conflict
• Negotiation
• Group decision-making
• Power and politics
C. Organizational Level
This level examines the organization as a whole.
Topics include:
• Organizational culture
• Organizational structure
• Organizational change
• Organizational development
• Technology
• Organizational effectiveness
Diagram: Levels of Organizational Behaviour
Organizational Behaviour
│
┌─────────┼─────────┐
│ │ │
Individual Group Organization
5. Objectives of Studying Organizational Behaviour
The lecture highlights three major objectives of OB.
A. Understanding Human Behaviour
Managers need to understand why employees behave differently.
Understanding behaviour helps managers identify employee needs, expectations, motivations, and
concerns.
Example:
A manager who understands that an employee values recognition can use appreciation to increase
motivation.
B. Predicting Human Behaviour
Managers should be able to predict how employees are likely to behave in different situations.
Prediction helps managers anticipate:
• Absenteeism
• Turnover
• Job satisfaction
• Employee commitment
• Performance
Example:
Employees experiencing low job satisfaction are more likely to leave the organization.
C. Influencing or Modifying Human Behaviour
Managers use Organizational Behaviour principles to encourage positive behaviours and reduce negative
behaviours.
Examples:
• Motivating employees.
• Improving teamwork.
• Reducing conflicts.
• Managing stress.
• Increasing productivity.
6. Importance of Organizational Behaviour
Studying OB provides several benefits.
A. Improves Employee Performance
Understanding motivation, leadership, and communication helps employees perform more effectively.
B. Improves Managerial Effectiveness
Managers make better decisions when they understand employee behaviour.
C. Enhances Teamwork
OB improves cooperation, trust, and communication among team members.
D. Improves Leadership
Leaders understand how to motivate, influence, and inspire employees.
E. Reduces Workplace Conflict
Knowledge of conflict management and negotiation reduces organizational problems.
F. Supports Organizational Change
Organizations undergoing technological or structural changes need employees to adapt effectively.
G. Improves Organizational Effectiveness
Organizations with positive employee behaviour generally experience:
• Higher productivity.
• Better customer satisfaction.
• Lower turnover.
• Higher profitability.
7. Factors Influencing Human Behaviour
Employee behaviour is influenced by several factors.
Individual Factors
• Personality
• Values
• Attitudes
• Emotions
• Perception
• Motivation
Group Factors
• Leadership
• Communication
• Group norms
• Teamwork
• Conflict
Organizational Factors
• Organizational culture
• Organizational structure
• Policies
• Technology
• Reward systems
External Factors
• Economic conditions
• Social environment
• Political environment
• Technological developments
• Legal regulations
8. Role of Managers in Organizational Behaviour
Managers apply OB knowledge to:
• Recruit suitable employees.
• Motivate staff.
• Build effective teams.
• Resolve conflicts.
• Improve communication.
• Develop leadership.
• Manage organizational change.
• Create positive work environments.
• Increase employee satisfaction.
• Improve organizational performance.
9. Applications of Organizational Behaviour
Organizational Behaviour is applied in many management activities.
Examples include:
Human Resource Management
• Recruitment
• Training
• Performance appraisal
• Employee development
Leadership
• Motivating employees.
• Building trust.
• Managing teams.
Organizational Development
• Managing change.
• Improving culture.
• Increasing organizational effectiveness.
Conflict Management
• Negotiation.
• Problem-solving.
• Relationship management.
10. Advantages of Studying Organizational Behaviour
• Better understanding of employees.
• Improved communication.
• Higher employee motivation.
• Better leadership.
• Stronger teamwork.
• Effective decision-making.
• Improved organizational performance.
• Greater adaptability to change.
11. Limitations of Organizational Behaviour
Although OB is valuable, it has some limitations.
• Human behaviour is complex and unpredictable.
• Individuals respond differently to similar situations.
• Cultural differences influence behaviour.
• OB provides probabilities rather than exact predictions.
• Organizational behaviour changes over time.
12. Managerial Implications
Managers should:
• Understand employee differences.
• Encourage teamwork.
• Develop effective leadership.
• Build positive organizational culture.
• Use motivation techniques.
• Communicate effectively.
• Manage conflicts constructively.
• Promote continuous learning and development.