OB Notes
Nature , Scope, Definition and Goals of Organisational Behaviour.
Definition: Organizational behavior (OB) is the study of how people interact in an organization and how
those interactions impact the organization's performance. It's a multidisciplinary field that examines the
impact of various factors on employee behavior, and how organizations can manage and improve that
[Link] behaviour is the study of individuals, groups and organizational systems.
Organisational behaviour examines how human beings behave and interact with each other in the
organisations. OB is considered as an art of applied science which deals with the emotions, feelings, beliefs,
perceptions, intellectuality and mentality of people working in an organisation. As human resource is a crucial
factor which affects the growth of any organisation, it becomes utmost important to understand how the
behaviour of people working in an organisation can help it to grow.
Nature of OB:
Nature of Organizational Behavior:
1. Multidisciplinary: Organizational Behavior draws insights from various disciplines such as
psychology, sociology, anthropology, and management. This multidisciplinary approach helps in
gaining a comprehensive understanding of human behavior in organizations.
2. Systematic Study: OB relies on a systematic and scientific approach to study organizational
phenomena. Researchers use empirical evidence and data to analyze and understand patterns
of behavior within organizations.
3. Applied Science: While OB is grounded in academic research, its ultimate goal is to provide
practical solutions to real-world organizational problems. It seeks to apply theories and
concepts to enhance organizational effectiveness and improve the quality of work life.
4. Contingency Approach: OB recognizes that there is no one-size-fits-all solution to
organizational challenges. The contingency approach suggests that the effectiveness of
organizational practices depends on the specific situation, context, and environment.
Scope of Organizational Behavior:
1. Individual Behavior: OB examines individual characteristics such as personality, perception,
motivation, and learning, and how these factors influence employee behavior and
performance.
2. Group Behavior: The study of group dynamics and team effectiveness is a significant aspect
of OB. It explores how teams form, communicate, make decisions, and impact overall
organizational success.
3. Organizational Structure and Culture: OB investigates how organizational structure and
culture influence behavior. It looks at the impact of leadership, communication channels, and
the formal and informal aspects of organizational culture.
4. Change Management: In a dynamic business environment, change is inevitable. OB plays a
crucial role in understanding and managing organizational change, addressing resistance,
and facilitating smooth transitions.
5. Workplace Diversity: With an increasing focus on diversity and inclusion, OB explores how
differences in age, gender, ethnicity, and other factors affect organizational behavior and
performance.
6. Employee Well-being: OB is concerned with understanding and improving the quality of
work life. This includes examining factors like job satisfaction, stress, and work-life balance.
Goals of Organizational Behavior
[Link] describe systematically how people behave under variety of conditions
[Link] understand why people behave as they do
[Link] predict future employee behavior
[Link] control & develop human activity at work
There are some goals of organizational behavior which are as follows:
Describe: The first goal is to describe, systematically how people behave under a variety of
conditions. Achieving this goal allows managers to communicate about human behavior at work
using a common language.
Understand: A second goal is to understand if any people behave as they do. The managers
would be frustrated if they could talk about the behavior of their employees, but not understand
the reasons behind those actions.
Predict: The managers would have capacity to predict which employees might be dedicated
and productive or which ones might be absent, causing problems. And thus the managers could
take preventive actions.
Control: The final goal of OB is to control and develop some human activity at work. Since
managers are held responsible for performance outcome, they are vitally interested in being
able to make an impact on employee behavior, skill development, team effort, and productivity.
Managers need to be able to improve results through the actions they and their employees take,
and organizational behavior can aid them in their pursuit of this goal
Models of Organisational Behaviour:
Types of Models of Organisational Behaviour
1. Feudal Model
Feudal model is defined as a type of model that considers the employees working in an
organisation as an inferior element of the organisation. The working employees were given less
value in the feudal model. For various decisions and actions in the company, the desires and
values of people were not considered. This model was majorly called Theory X, in which the
procedures, actions, policies and rules were considered with higher priority and superior to
human beings.
2. Autocratic Model
The autocratic Model is defined as a type of organisational model that depends upon power,
strength and formal authority. This model majorly depends on power. The working employees
need to follow the orders. The lower-level employees have less control over the assigned duties
as compared to upper-level authorities. Major decisions are made by the higher-level authorities
only. The basic principle that is followed in the autocratic model is that owners of the company
or higher managerial authorities have higher expertise in business, whereas lower-level
employees have fewer skills and experience.
3. Custodial Model
Custodial Model is defined as a type of model where economic resources are considered as the
root level. In this model, the employees and working professionals of the company are adapted
to the benefits and security provided by the company as every employee considers security as
the major parameter while working. The firms with more resources majorly adapt this model as
the model is dependent upon the availability of high economic resources. The custodial model is
based on rewards. It overcomes the limitations of the autocratic model. In most companies,
more benefits such as healthcare benefits and corporate cars are also being provided along
with security.
4. Supportive Model
As the name itself suggests, the supportive model is defined as a type of model that considers
leadership as its root level. In this model, the employees are oriented towards their participation
and job performance. This model helps employees to improve their overall performance and
enhance learning. Public sector organisations majorly follow a supportive model because it is
based on leadership. In this model more importance is given to job satisfaction, friendly
relationships between superiors and subordinates, and psychological needs of the employees.
The role of the higher manager is to get the work done by helping their employees.
5. Collegial Model
The collegial model is a further extension of the supportive model. The word collegial means
bodies of different individuals working towards a common goal. The partnership is the root level
of the collegial model; the approach adopted is the teamwork approach. The workers in the
collegial model are satisfied in their job roles and are committed towards the overall growth of
the organisation. It is the responsibility of the manager to create a healthy and positive
workplace for his employees. The collegial model works more effectively in finding new
approaches such as research and development, marketing teams, technologies and software,
etc.
6. Human Value Model
The human value model is defined as a model that gives more importance to human values.
This model is opposite to that of the feudal model. The human values of the employees were
more appreciated than the economic values. The employees working in an organisation work to
fulfil their social and psychological needs rather than focusing only on economic needs. This
model is for human dignity.
7. Contingency Model
Contingency Model is defined as a complex model. The contingency Model of organisational
behaviour assumes the complex variables that consist of the behaviour of individuals, groups
and structure. Therefore, this model meets all the challenges for the growth of the organisation.
To demonstrate the contingency model Theory Z is being developed. The Contingency Model is
also known as a hybrid model. The contingency Model guarantees the promotion and long-term
employment opportunities for the employees working in the organisation.
Total Quality Management (TQM)
A commonly known quality management approach is Total Quality Management (TQM). This
philosophical approach focuses on leading and achieving quality excellence in every aspect of
an organization. It emphasizes continuous improvement, involving all employees in the pursuit
of customer satisfaction.
TQM fosters a culture where quality is ingrained, encouraging teamwork, proactive
problem-solving, and a commitment to excellence. By integrating quality into all processes and
departments, TQM aims to eliminate defects, streamline operations, reduce waste, and
enhance overall performance, ensuring long-term success and competitiveness in the market.
● Total Quality Management (TQM) emphasizes continuous improvement, involving all
employees in achieving quality excellence. It fosters a culture of ingrained quality,
teamwork, proactive problem-solving, and commitment to excellence, aiming to eliminate
defects, reduce waste, and enhance overall performance.
● TQM focuses on customer satisfaction, employee involvement, process-oriented
approaches, continuous improvement, evidence-based decision-making, supplier
relationships, and leadership commitment to drive a culture of quality excellence.
● TQM requires strong leadership commitment, systematic processes, and employee
engagement. Real-world examples like Toyota Production System (TPS), Motorola’s Six
Sigma, and healthcare sector applications illustrate TQM’s impact on quality
enhancement in various industries.
The Key Players in Total Quality Management: Customers, Suppliers, and Employees
In Total Quality Management (TQM), customers, suppliers, and employees play pivotal roles as
key stakeholders contributing to quality assurance and quality control in an organization.
[Link] focus is central; customer satisfaction steers the direction of quality standards.
Understanding the feedback they provide on-demand products, preferences, and experiences is
fundamental to delivering products or services that surpass expectations.
[Link] represent another critical element. They provide the raw materials and inputs
necessary for a production process or insight into the planning phase of the overall
manufacturing processes, directly impacting the quality of the final output. Collaborating closely
with suppliers ensures consistency and reliability in the inputs, thus influencing the quality of the
end product or service.
[Link] must be on the same page as top management to properly apply total quality
management tools. Examples include the integration of each production process as a holistic
view of the overall manufacturing processes. The widely agreed-upon approach to TQM helps
build integrated systems that foster customer [Link] and engaging employees
at all levels fosters a culture where everyone contributes ideas, innovation, and efforts toward
achieving superior quality, ultimately benefiting the customers and the organization as a whole.
TQM processes are used to improve processes, instill an organizational commitment to quality
assurance and quality control, and dedication to continuous improvement that materially drives
customer satisfaction.
The Seven Basic Tools of Total Quality Management
These quality management tools are instrumental in analyzing data, identifying problems,
understanding processes, and making informed decisions to improve quality within an
organization.
Cause-and-Effect Diagrams Visual tools to identify and analyze
(Fishbone or Ishikawa diagrams) potential causes contributing to a
specific problem or outcome.
Check Sheets Simple forms or charts to collect and
organize data systematically, facilitating
easy analysis.
Control Charts Statistical graphs monitor
variations and track process
stability over time, distinguishing
between common causes and
assignable causes of variations.
Scatter Diagrams A scatter plot visualizes the
relationships between two
variables to identify correlations or
trends.
Stratification / Flowcharts Diagrams illustrating the sequence
of steps or processes, aiding in
understanding and optimizing
workflows.
Histogram
Common graph for data
distribution, helping users identify
variations and patterns in a
dataset.
