1. Organizational behavior
Out lines.
 Introduction
 Definition of OB.
 importance of Organizational Behavior (OB)
 Factors affecting organizational behavior
 Objectives of Organizational Behavior
 Levels of OB analysis.
 Models of organizational behavior
 Challenges and opportunities of organizational
behavior
 Limitations of OB
Introduction
Organizational Behavior is the study and application of
knowledge about how people, individuals, and groups act
in organizations. It does this by taking a system
approach.
That is, it interprets people-organization relationships in
terms of the whole person, the whole group, the whole
organization, and the whole social system.
Its purpose is to build better relationships by achieving
human objectives, organizational objectives, and social
objectives. OB encompasses a wide range of topics, such
as human behavior, change, leadership, teams, etc
Definition of OB.

2. organisational behaviour is the: "study of human
behavior in organizational settings, the interface between
human behavior and the organization, and the
organization itself".
importance of Organizational Behavior (OB) in
any type of organizations is as follows:
1. Organizational Behaviour helps in
understanding Organization and Employees in a
better way:
Studying Organizational Behaviour helps to
understand organization and people in a better way.
When we can understand organization and
employees, it helps to develop friendly relationship
between organization and employees creating a
proper working environment in an organization.
Similarly, studying Organizational Behavior topics
helps to find out the factor causing the behavior,
and helps to apply different strategies to control the
critical behavior which harms the organization.
2. OB helps in motivating employees:
Importance of Organizational behavior cannot be
neglected because studying Organizational
Behavior helps managers to motivate the
employees bringing a good organizational
performance. As every individual differs from each

3. other, therefore Organizational Behavior helps
managers to apply appropriate motivational tools
and techniques in accordance with the nature of
individual employees. This helps achieving
organizational goal properly.
3. Organizational Behavior helps in improving
Industrial / Labour relations:
Studying Organizational Behavior helps to improve
industrial/labour relations. Organizational Behavior
Management helps in understanding the root-cause
of the problem, predict its future course of action
and control its negative consequences. As,
managers are aware about the positive and
negative consequences of the behavior, it enables
managers to maintain friendly relations with their
employees which creates peace and harmony in the
organization.
4. Organizational Behavior helps in predicting
and controlling Human Behavior:
Studying Organizational Behavior helps to predict
and control human behavior. It is the one of the
most important reason for studying
Organizational Behavior. Knowledge of
Organizational Behavior is very much important for
the management students who are going to have a
career as a successful manager. If all the
Organizational Behavior theories is studied properly
then it helps to bring organizational effectiveness.

4. 5. Organizational Behavior helps in effective
utilization of Human Resources:
Studying Organizational Behavior helps in effective
utilization of Human Resources. Knowledge
of Organizational Behavior helps managers to
manage people effectively in the
organization.Likewise, it enables managers to
inspire and motivate employees toward higher
productivity and better results as the manager is
able to analyze and understand nature and
behavior of his employees.
Factors affecting organizational behavior

5. People
People make up the internal social system of the
organization. That system consists of individuals and
groups and groups may be large and small, formal and
informal. Groups are dynamic.
Group form, change and disband. Since the organization
is a combination of a group of people, managers must
handle the people in the right direction.
This is very challenging to guide people or employees
who have different educational backgrounds, talent, and
perspectives. So managers must understand predict and
control the people.
They build up relationship among the employees and
motivate themselves.
Structure
The structure defines the formal relationship and use of
people in the organization. There are managers and
employees, accounts assemblers in order to accomplish a
different kind of activities.
They are related in a structural way so that their work
can be effectively coordinated. Because there is no
organization can be successful without proper
coordination.
Many organizational structures have become flatter. This
downsizing and restructuring have occurred as a result of
the pressure to lower costs while remaining competitive.
Other structures have grown more complex as a result of
mergers, acquisitions, and new ventures. Several
organizations have experimented with hiring contingent
workforces (temporary, part-time, or contract
employees).

6. Finally, many firms have moved from a traditional
structure to a team-based one.
Technology
Technology provides the resources with which people
work and affects the tasks that they perform. They cannot
accomplish work with their bare hands.
The technology used has a significant influence on
working relationships.
The great benefit of technology is that it allows people to
do more and better work, but it also restricts people in
various ways’ It has cost as well as benefits.
Examples of the impact of technology include the
increasing use of robots and automated control systems
in an assembly line.
The dramatic shift from a manufacturing to a service
economy, the impressive advances in computer hardware
and software capabilities, the rapid move toward the
widespread use of the information highway (internet).
And the need to respond to societal demands for
improved quality of goods and services at acceptable
prices.
If any person has a lack of technological knowledge
he/she cannot work. Moreover, technology decrease per
unit cost and improve the quality of the products and
services.
Environment
All organizations operate within an internal and an
external environment. A single organization does not
exist alone.
An organization is a part of a lager system that contains
many other elements, such as government, the family,
and other organizations. Numerous changes in the
environment create demands on organizations.

7. Citizens expect organizations should be socially
responsible; new products and competition for customers
come from around the globe; the direct impact of unions
diminishes; the dramatic pace of change in society
quickens.
There is a direct impact of several trade unions of
organizations.
So all the elements of environments influence the attitude
and provide competition. It must be considered in the
study of human behavior in an organization.
Objectives of Organizational Behavior
The organizations in which people work have an effect
on their thoughts, feelings, and actions. These thoughts,
feelings, and actions, in turn, affect the organization
itself.
Organizational behavior studies the mechanisms
governing these interactions, seeking to identify and
foster behaviors conducive to the survival and
effectiveness of the organization.
1. Job Satisfaction.
2. Finding the Right People.
3. Organizational Culture.
4. Leadership and Conflict Resolution.
5. Understanding the Employees Better.
6. Understand how to Develop Good Leaders.
7. Develop a Good Team.
8. Higher Productivity.

8. Levels of OB analysis.
INDIVIDUAL LEVEL OF ANALYSIS
At the individual level of analysis, organizational
behavior involves the study of learning, perception,
creativity, motivation, personality, turnover, task
performance, cooperative behavior, deviant
behavior, ethics, and cognition. At this level of
analysis, organizational behavior draws heavily
upon psychology, engineering, and medicine.
GROUP LEVEL OF ANALYSIS
At the group level of analysis, organizational
behavior involves the study of group dynamics,
intra- and intergroup conflict and cohesion,
leadership, power, norms, interpersonal
communication, networks, and roles. At this level of
analysis, organizational behavior draws upon the
sociological and socio-psychological sciences.
ORGANIZATION LEVEL OF ANALYSIS
At the organization level of analysis, organizational
behavior involves the study of topics such as
organizational culture, organizational structure,
cultural diversity, inter-organizational cooperation
and conflict, change, technology, and external
environmental forces. At this level of analysis,
organizational behavior draws
upon anthropology and political science.
Models of organizational behavior

9. Autocratic Model of Organizational Behavior
The autocratic model of organizational behavior
puts the boss in charge and the subordinates in a
position to obey commands or be fired. It's black
and white, regarding who is in charge and quickly
establishes consequence for insubordination or lack
of performance. This environment uses a paycheck
as the reward system rarely implementing any other
incentive programs.
Loyalty, if it exists, is generally to the boss and not
the company. This model can create a fearful
workforce, unsure if any mistake could lead to
disciplinary action.
Custodial Model of Organizational Behavior
Custodial models seek to make employees feel as if
the boss is caring for their personal needs. This is
often done through benefits packages such as
healthcare, retirement plans and other incentives.
An executive visiting various territory offices could
get a company car as an incentive.
The custodial model looks to retain quality people
by providing incentives that are meaningful to the
employee. Loyalty is to the company and not
individual company leaders.
Collegial Model of Organizational Behavior
The collegial model works to develop a structure in
which managers are more like coaches and
employees are team members. Power is shared to
some degree. The coach leads through inspiration.

10. In this model, the loyalty is to the bigger goal, and
team responsibility rather than to an individual.
Employees feel invested in the success of the
company and take pride in the successful execution
of goals.
Supportive Model of Organizational Behavior
The supportive model seeks to understand what
motivates employees and focuses on those things
to motivate and inspire. When employees are given
opportunities to improve themselves, they often
take personal initiative to perform better at their job.
Managers support employees as they work toward
established personal goals such as promotion or
acquisition of new skills. In this model, a manager
would ask employees for professional goals and
would work with them to establish an action plan to
succeed with them.
SystemModel of Organizational Behavior
The system model is really the foundation of
positive corporate cultures.
When people think about why LinkedIn is a great
place to work, for example, it is because of the
incentives, work schedule flexibility and creative
encouragement that leadership provides.
It is nurturing yet challenging,and so efficiency and
productivity increase in a happier work environment
that's loyal to the company and excited to share its
vision.

11. Small business owners don't need to try to compete
with what LinkedIn does, but should develop
strategies within their resources to build a positive
corporate culture.
Challenges and opportunities of organizational
behavior :
are massive and rapidly changing for improving
productivity and meeting business goals.
1. Improving Peoples’ Skills.
2. Improving Quality and Productivity.
3. Total Quality Management (TQM).
4. Managing Workforce Diversity.
5. Responding to Globalization.
6. Empowering People.
7. Coping with Temporariness.
8. Stimulating Innovation and Change.
9. Emergence of E-Organisation & E-Commerce.
10. Improving Ethical Behavior.
11. Improving Customer Service.
12. Helping Employees Balance Work-Life Conflicts.
13. Flattening World.
major limitations of OB are;
1. Behavioral Bias.
Behavioral bias can be so misapplied in a way that it
can be harmful to employees as well as the
organization as a whole. Some individuals, despite

12. having good intentions, so overwhelm others with
the care that the recipients of such care become
dependent and unproductive.
They find excuses for failure rather than take
responsibility for progress. They do not possess a
high degree of self-respect and self-discipline.
2. The Law of Diminishing Returns.
Overemphasis on an organizational behavior, the practice
may produce negative results, as indicated by the law of
diminishing returns. It places an overemphasis on an OB
practice may produce negative results.
It is a limiting factor in organizational behavior in the
same way that it is in economics. In economics, the law
of diminishing return refers to a declining amount of
extra outputs when more of a desirable input is added to
an economic situation.
3. Unethical Manipulation of People.
significant concern about organizational behavior is that
its knowledge and techniques can be used to manipulate
people unethically as well as to help them develop their
potential.
People who lack respect for the basic dignity of the
human being could learn organizational behavior ideas
and use them for selfish ends.
They could use what they know about motivation or
communication in the manipulation of people without

13. regard for human welfare. People who lack ethical values
could use people in unethical ways.