Organizational Behavior and Change Management/Unit 1

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Definition and Importance of OB[edit]

Stephen P. Robbins defines organizational behavior as "a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge toward improving an organization's effectiveness."

The above definition simplifies as follow:

  • Field of Study: It is a distinct area of expertise with a common body of knowledge.
  • Individuals, groups, structure: It studies these three determinants of behavior in organizations.
  • Organization's effectiveness: It applies the knowledge gained about individuals, groups, and the effect of structure, on behavior in order to make organizations work more effectively.

Organizational behavior is usually abbreviated as OB.


Importance of OB:

  1. OB affects the interest of people, enhances their awareness and effectiveness, and improves their ability in handling conflict and stress management.
  2. OB provides a set of tools which help the managers to look at the behavior of individuals within an organization.
  3. OB is valuable in examining the dynamics of relationships within small groups, both formal and informal.
  4. OB provides frame works for understanding differences between national cultures, because cultural difference may require managers to modify their practices.
  5. OB provides number of challenges and opportunities for managers. e.g. how to improve quality, how to improve people's skill, how recognize the value of work force diversity.

Multidisciplinary approach to OB[edit]

Models of OB[edit]

Models of OB-

Autocratic - The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal. Custodial - The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation. Supportive - The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives. Collegial - The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm.

Challenges and opportunities for OB[edit]

Importance of Motivation in Org. effectiveness[edit]

Maslow's need hierarchy model[edit]

 Maslow a well known Psycologist proposes that Rewards & recognisation play a vital role in Motivation.
There are 5 areas those should be considered in Maslow hierarchy model.

1.Self Actualisation Needs: which stands for finding satisifaction in using one's capabilities at utmost.

2.Self Esteem,Worth Needs: which stands for "Being appreciated and rewarded for a successful project".

3.Social Belongingness Needs: Which stands for wanting to be a part of the In-House club of the Company.

4.Security Needs: Being Assured job,getting gratitutes and provident fund

5.Physiological Needs: Owning a House and fulfilling the basic neccessities of Life.

Herzberg's two factor theory[edit]

McClelland's achievement motivation theory[edit]

Path goal theory[edit]

Vroom's expectancy theory[edit]