ORGANISATIONAL BEHAVIOUR

 

ORGANISATIONAL BEHAVIOUR

What Is Organizational Behavior (OB)?

Organizational behavior is the academic study of how people interact within groups. The principles of the study of organizational behavior are applied primarily in attempts to make businesses operate more effectively.

KEY TAKEAWAYS

• Organizational behavior is the academic study of how people interact within groups and its principles are applied primarily in attempts to make businesses operate more effectively.
• The study of organizational behavior includes areas of research dedicated to improving job performance, increasing job satisfaction, promoting innovation, and encouraging leadership and is a foundation of corporate human resources.
• The Hawthorne Effect, which describes the way test subjects' behavior may change when they know they are being observed, is the best-known study of organizational behavior.
• Organizational behavior is embedded in human resources such as employee retention, engagement, training, and culture.
• Organizational behavior is a subset of organizational theory which studies a more holistic way of structuring a company and managing its resources.

 

Organizational Behavior

Understanding Organizational Behavior (OB)

The study of organizational behavior includes areas of research dedicated to improving job performance, increasing job satisfaction, promoting innovation, and encouraging leadership. Each has its own recommended actions, such as reorganizing groups, modifying compensation structures, or changing methods of performance evaluation.

Organizational Behavior Origins

The study of organizational behavior has its roots in the late 1920s, when the Western Electric Company launched a now-famous series of studies of the behavior of workers at its Hawthorne Works plant in Cicero, Ill.1

Researchers there set out to determine whether workers could be made to be more productive if their environment was upgraded with better lighting and other design improvements. To their surprise, the researchers found that the environment was less important than social factors. It was more important, for example, that people got along with their co-workers and felt their bosses appreciated them.

Those initial findings inspired a series of wide-ranging studies between 1924 and 1933.1They included the effects on productivity of work breaks, isolation, and lighting, among many other factors.

The Hawthorne Effect—which describes the way test subjects' behavior may change when they know they are being observed—is the best-known study of organizational behavior. Researchers are taught to consider whether or not (and to what degree) the Hawthorne Effect may skew their findings on human behavior.

Organizational behavior was not fully recognized by the American Psychological Association as a field of academic study until the 1970s.2 However, the Hawthorne research is credited for validating organizational behavior as a legitimate field of study, and it's the foundation of the human resources (HR) profession as we now know it.

Evolution of Organization Behavior

The leaders of the Hawthorne study had a couple of radical notions. They thought they could use the techniques of scientific observation to increase an employee's amount and quality of work, and they did not look at workers as interchangeable resources. Workers, they thought, were unique in terms of their psychology and potential fit within a company.

Over the following years, the concept of organizational behavior widened. Beginning with World War II, researchers began focusing on logistics and management science. Studies by the Carnegie School in the 1950s and 1960s solidified these rationalist approaches to decision-making.3

Today, those and other studies have evolved into modern theories of business structure and decision-making. The new frontiers of organizational behavior are the cultural components of organizations, such as how race, class, and gender roles affect group building and productivity. These studies take into account how identity and background inform decision-making.

 

Organizational behavior is no different than other forms of psychological behavior analysis. It simply emphasizes how individuals operate and work together within a business setting.

Learning Organizational Behavior

Academic programs focusing on organizational behavior are found in business schools, as well as at schools of social work and psychology. These programs draw from the fields of anthropology, ethnography, and leadership studies, and use quantitative, qualitative, and computer models as methods to explore and test ideas.

Depending on the program, one can study specific topics within organizational behavior or broader fields within it. Specific topics covered include cognition, decision-making, learning, motivation, negotiation, impressions, group process, stereotyping, and power and influence. The broader study areas include social systems, the dynamics of change, markets, relationships between organizations and their environments, how social movements influence markets, and the power of social networks.

Organizational Behavior Study Methods

Organizational behavior can be studied using a variety of methods to collect data. Surveys are a popular research method in organizational behavior research. They involve asking individuals to answer a set of questions, often using a Likert scale. The goal of the survey is to gather quantitative data on attitudes, behaviors, and perceptions related to a particular topic. In a similar manner, companies may perform interviews to gather data about individuals' experiences, attitudes, and perceptions.

Companies can also gather data without directly interacting with study subjects. Observations involve watching individuals in real-life settings to gather data on their behaviors, interactions, and decision-making processes. Meanwhile, a company can perform case studies to perform an in-depth examination of a particular organization, group, or individual.

In situations where there isn't really precedent, companies can study organizational behavior by running experiments. By manipulating one or more variables at a time to observe the effect on a particular outcome, a company can get the best sense of how organizational behavior tweaks change employee disposition.

Organizational behavior data can be quantitative or qualitative.

Organizational Behavior and HR

Organizational behavior is an especially important aspect to human resources. By better understanding how and why individuals perform in a certain way, organizations can better recruit, retain, and deploy workers to achieve its mission. The specific aspects of organizational behavior relating to HR are listed below.

Recruitment

Organizational behavior research is used to identify the skills, abilities, and traits that are essential for a job. This information is used to develop job descriptions, selection criteria, and assessment tools to help HR managers identify the best candidates for a position. This is especially true for roles that may have technical aspects but rely heavier on soft skills.

Training

Organizational behavior can be used to design and deliver training and development programs that enhance employees' skills. These programs can focus on topics such as communication, leadership, teamwork, and diversity and inclusion. In addition, organizational behavior can be used to be better understand how each individual may uniquely approach a training, allowing for more customized approaches based on different styles.

Performance Management

Organizational behavior is used to develop performance management systems that align employee goals with organizational objectives. These systems often include performance metrics, feedback mechanisms, and performance appraisal processes. By leveraging organizational behavior, a company can better understand how its personnel will work towards common goals and what can be achieved.

Employee Engagement

Organizational behavior is used to develop strategies to improve employee engagement and motivation. These strategies can include recognition and rewards programs, employee involvement initiatives, and career development opportunities. Due to the financial incentives of earning a paycheck, organizational behavior strives to go beyond incentivizing individuals with a paycheck and understanding ways to enhance the workplace with other interests.

Culture

Organizational behavior research is used to develop and maintain a positive organizational culture. This includes devising strategies that supports employee well-being, trust, and a shared vision for the future. As each individual may act in their own unique manner, it is up to organizational behavior to blend personalities, integrate backgrounds, and bring people together for a common cause.

Organizational Behavior vs. Organizational Theory

Organizational behavior and organizational theory are related fields of study, but they have some important differences. While organizational behavior is concerned with understanding and improving the behavior of individuals, organizational theory is concerned with developing and testing theories about how organizations function and how they can be structured effectively.

Organizational theory draws on concepts and theories from economics, sociology, political science, and other social sciences. It aims to understand how organizations are structured and how they operate. In some aspects, organizational behavior can be considered a subset of organizational theory.

Both fields are important for understanding and improving organizational performance, and they often overlap in their research topics and methods. However, organizational theory is often much broader and does not focus on individuals.

Examples of Organizational Behavior

Findings from organizational behavior research are used by executives and human relations professionals to better understand a business’s culture, how that culture helps or hinders productivity and employee retention, and how to evaluate candidates' skills and personality during the hiring process.

Organizational behavior theories inform the real-world evaluation and management of groups of people. There are several components:

• Personality plays a large role in the way a person interacts with groups and produces work. Understanding a candidate's personality, either through tests or through conversation, helps determine whether they are a good fit for an organization.
• Leadership—what it looks like and where it comes from—is a rich topic of debate and study within the field of organizational behavior. Leadership can be broad, focused, centralized or de-centralized, decision-oriented, intrinsic in a person’s personality, or simply a result of a position of authority.
• Power, authority, and politics all operate inter-dependently in a workplace. Understanding the appropriate ways these elements are exhibited and used, as agreed upon by workplace rules and ethical guidelines, are key components to running a cohesive business.

Why Is Organizational Behavior Important?

Organizational behavior describes how people interact with one another inside of an organization, such as a business. These interactions subsequently influence how the organization itself behaves and how well it performs. For businesses, organizational behavior is used to streamline efficiency, improve productivity, and spark innovation to give firms a competitive edge.

What Are the 4 Elements of Organizational Behavior?

The four elements of organizational behavior are people, structure, technology, and the external environment. By understanding how these elements interact with one another, improvements can be made. While some factors are more easily controlled by the organization—such as its structure or people hired—it still must be able to respond to external factors and changes in the economic environment.

What Are the 3 Levels of Organizational Behavior?

The first is the individual level, which involves organizational psychology and understanding human behavior and incentives. The second level is groups, which involves social psychology and sociological insights into human interaction and group dynamics. The top-level is the organizational level, where organization theory and sociology come into play to undertake systems-level analyses and the study of how firms engage with one another in the marketplace.

What Are Some Common Problems that Organizational Behavior Tries to Solve?

Organizational behavior can be used by managers and consultants to improve the performance of an organization and to address certain key issues that commonly arise. These may include a lack of direction or strategic vision for a company, difficulty getting employees on board with that vision, pacifying workplace conflict or creating a more amenable work environment, issues with training employees, poor communication or feedback, and so on.

The Bottom Line

Organizational behavior is the study of human behavior in an organizational setting. This includes how individuals interact with each other in addition to how individuals interact with the organization itself. Organizational behavior is a critical part of human resources, though it is embedded across a company.

Definitions:

“Organisational behaviour is a subset of management activities concerned with understanding, predicting and influencing individual behaviour in organisational setting.”—Callahan, Fleenor and Kudson.

“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.”—Raman J. Aldag.

“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.”— Newstrom and Davis.

“Organisational behaviour is directly concerned with the understanding, production and control of human behaviour in organisations.”—Fred Luthans.

“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 organization’s effectiveness.”—Stephens P. Robbins.

In short, organisational behaviour revolves around two fundamental components:

1. The nature of the man.

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 and Human Resource Management:

Organisational behaviour is generally confused with organisational theory, organisational psychology, and human resource management. 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 channelized 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.

Characteristics of Organisational Behavior:

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 generalizations 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 systematic 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 generalize 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.

Nature of Organisational Behavior:

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.

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.