Introduction

Behaviour is a way of action. It is basically goal oriented. In other words, our behaviour is generally motivated by a desire to attain a goal. The specific goal is not always consciously known by the individual. Many times we wonder “why did I do that “? The reason for our action is not always apparent to the conscious mind. The drives that motivate distinctive individual behavioural patterns are to a considerable degree subconscious and, therefore, not easily susceptible to examination and evaluation.The basic unit of behaviour is an activity. In fact, all behaviour is a series of activities. As a human being, we always do some thing: walking, talking, sleeping etc. and sometimes we do more than one activity at a time. Sometimes, we decide to change from one activity to another. Why do we do so ? Or why do people engage in one activity and not another ? A manager must understand, predict and control the activities of a person at a given moment. To predict behaviour, manager must know which motives or needs of people evoke a certain action at a particular time.

Organisational Behaviour

Organisational behaviour is the study and application of knowledge about how people act within organisations. It is a human tool for human benefit. It applies broadly to the behaviour of people in all types of organisations, such as business, government, school and service organisations. Wherever organisations are, there is a need to understand organisational behaviour.

They key elements in organisational behaviour are people, structure, technology and the environment in which the organisation operates. When people join together in an organisation to accomplish an objective, some kind of structure is required. People also use technology to help get the job done, so there is  an interaction of people, structure and technology. These elements are influenced by the external environment, and they influence it.

Key element in organisational behaviour

People: People make the internal social system of the organisation. People consist of individuals and groups (large as well as small). There are informal as well as formal groups. Groups are dynamic as they form, change and disband. The human organisation today is not the same as it was yesterday or the day before. People are the living, thinking and feeling beings who work in organisation to achieve their objectives. Organisations exist to serve people, rather to achieve their objectives. Organisations exist to serve people, rather than people existing to serve organisation.

Structure: It defines the formal relationships of people in organisations. Different jobs are required to accomplish all of an organisation’s activities. There are managers and employees. These people have to be related in some structural way so that their work can be effectively coordinated. Their relationships create complex problems of cooperation, negotiation and decision making.

Technology: It provides the resources with which people work and affects the task that they perform. People cannot accomplish anything without technology. 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.

Environment: All organisations operate within an external environment. A single organisation does not exist alone. It is a part of a larger system that contains many other elements, such as government, the family and the other organisations. All of these mutually influence each other in a complex system that creates a context for a group of people. Individual organisation such as a factory, shop, school cannot escape being influenced by the external environment. It influences the attitudes of people, affects working conditions and provides competition for resources and power. It must be considered in the study of human behaviour inorganisations.

 

Organisation Behaviour And Productivity 

The field of organisational behaviour refers to the interactionsof people and organisations and involves the systematic study of the behaviour, the processes and the structures found in the organisation. The study of organisational behaviour is of great importance and the effective implementation will certainly lead to high productivity and effecient and effective utilization of organisational resources. The study of organisational behaviour is exciting because it is real and relevant. It involves the study of own behaviour and the behaviour of the subordinates and then guide them in the positive direction. A effective manager requires a combination of knowledge and experience to achieve the objectives. The study of OB calls for understanding of organisation, organisational goals, organisation structure, motivation of employees, how employee learns, how people perceive in the different organisational settings, communication, role and effect of groups, organisational conflicts and stress, how people intract and their interaction patterns etc. Hence, if a manager looks at the subordinates and the organisation in a positive way, the study of organisational behaviour world certainly leads to high productivity and achievement of organisational goals.

 

Historical Development Of Organisation Behaviour

Although the human relationships have existed since the beginning of time, the art and science of trying to deal with them incomplex organisations is relatively new. In the early days, people  worked alone or in such small groups that their work relationships were easily handled. It has been popular to assume that under these conditions, people worked in the utopia of happiness and fulfilment, but this assumption is largely anostalgicre interpretation of history. Actual conditions were brutal and people worked from morning to evening under intolerable conditions of disease, filth, danger and scarcity of resources. They had to work this way to survive and very little effort was devoted to their job satisfactions.

Then came the industrial revolution. In the beginning, the condition of people did not improve, but at least the speed was planted for potential improvement. Industry expanded the supply of goods and knowledge that eventually gave workers increased wages, shorter hours and more work satisfaction.

 

Concepts Of Organisational Behaviour

Every field of social science has a philosophical foundation of basic concepts that guides its development. Organisational behaviour deals with a set of fundamental concepts revolving around the nature of the people and organisation.

Concepts of organisationalbehaviour are as follows :-

The Nature of People

1. Individual differences

2. A whole person

3. Caused behaviour (motivation)

4. Value of the person (human dignity)

The nature of organisations

1. Social systems

2. Mutual interest

Holistic Organisational Behaviour.

The Nature Of People:

With regard of people, there are four basic assumptions: individual differences, a whole person, caused behaviour (motivation) and value of the person (human dignity).

1. Individual differences: People have much in common (they become excited or they are grieved by the loss of loved one), but each person in the world is also individually different. The idea of individual differences comes originally from psychology. From the day of birth, each person is unique and individual experiences after birth make people even more different. Individual differences mean that management can get the greatest motivation among employees by treating them differently. Individual differences require that justice and rightness with employees shall be individual not statistical. Because of the individual differences, organisational behaviour philosophy like democratic political philosophy, begins with the individual.

2. A whole person: Although some organisations may wish they could employee only a person’s skill, all that they can employee is a whole person, rather than certain separate characteristics. Different human traits may be separately studied, but in the final analysis they are all part of one system making up a whole person. Skill does not exist apart from background or knowledge. Home life is not totally separable from work life and emotional conditions are not separate from physical conditions. People function as total human beings.

3. Caused behaviour (motivation): We know that behaviour has certain causes. These may relate to a person’s needs and/or the consequences that result from acts. In case of needs, people are motivated not by what they think they ought to have but by what they themselves want. To an outside observer, a person’s need may be illusory or unrealistic, but they are still controlling. This fact leaves management with two basic ways to motivate people. It can show them how certain actions will increase their need fulfillment, or it can threaten decreased need fulfillment unless they follow a required course of action. Clearly a path toward increased need fulfillment is the better approach.Motivation is essential to the operation of organisation. No matter how much machinery and equipment an organisation has, these things can not be put to use until they are released and guided by people who have been motivated.

4. Value of the person (human dignity): It is more an ethical philosophy than a scientific conclusion. It confirms that people are to be treated differently from other factors of production because they are of a higher order in the universe. It recognizes that people are of a higher order, they want to be treated with respect and dignity, and should be treated this way. Every job, however, simple, entitles the people who do it to proper respect and recognition of their unique aspirations and abilities. The concept of human dignity rejects the old idea of using employee as economic tool. Ethical philosophy is reflected in the conscience of human kind confirmed by the experience of people in all ages. It has to do with theconsequences of our acts to overselves and to others. It recognizes that life has an overall purpose and accepts the inner integrity of each individual. Since organisational behaviour always involve people, ethical philosophy is involved in one way or other in each action. Human decisions cannot, and should not, be made apart from values.

 

The Nature Of The Organisation :

With regard to organisations, the key assumptions are that they are social systems and that they are formed on the basis of mutual interest.

1. Social systems: From sociology, we learn that organisations are social systems; consequently, activities therein are governed by social laws as well as psychological laws. Just as people have psychological needs, they also have social roles and status. Their behaviour is influenced by their group as well as by their individual drives. In fact, two types of social systems exist side by side in organisations. One is the formal (official) social system, and the other is the informal social system.

The existence of a social system implies that the organisational environment is dynamic in nature, rather than a static set of relations as pictured on an organisation chart. All parts of the system are inter dependent and subject to influence by any other part. Everything is related to everything else.

The idea of a social system provides a framework for analysing organisational behaviour issues. It helps make organisational behaviour problems understandable and manageable.

2. Mutual interest: Mutual interest is represented by the statement “organisations need people, and people also need organisations”. Organisations have a human purpose. They are formed and maintained on the basis of some mutuality of interest among their participants. People see organisations as a means to help them reach their goals while at the same time, organisations need people to help reach organisational objectives. If mutuality is lacking, it makes no sense to try to assemble a group and develop co-operation, because there is no common base on which to build. Mutual interest provides a superordinate goal that unites the variety of needs that people bring to organisations. The result is that people are encouraged to attack organisational problems rather than each other.

 

Holistic Organisational Behaviour:

When the six fundamental concepts of organisational behaviour are considered together, they provide a holistic concept of the subject. Holistic organisational behaviour interprets people-organisation relationships in terms of the whole person, whole group, whole organisation, and whole social system. It takes an across the board view of people in organisations in an effort to understand as many as possible of the factors that influence their behaviour. Issues are analysed in terms of an isolated event or problem.

 

Models Of Organisation Behaviour :-

Organisations differ in the quality of organisational behaviour that they develop. These differences are substantially caused by different models of organisational behaviour that dominate management’s thought in each organisation. The model that manager holds, usually begins with certain assumptions about people and leads to certain interpretation of events.

There are four models :

1. Autocratic model

2. Custodial model

3. Supportive model

4. Collegial model.

1. Autocratic Model : The model depends upon power. In an autocratic environment, the managerial orientation is formal, official authority. This authority is delegated by right of command over the people to whom it applies. Management believes that he knows what is best and that the employee’s obligation is to follow orders. It assumes that employees have to be directed, persuaded and pushed into performance and this is management’s task. Management does the thinking, the employees obey the orders.

Under autocratic conditions, the employee orientation is of obedience. The superior pays minimum wages because minimum performance is given by employees.

The autocratic model is a useful way to accomplish work especially in the conditions of crisis. However, the combination of emerging knowledge about the needs of the employees and changing societal values suggest that there are better ways to manage organisational systems i.e., the other models.

2. Custodial Model:In the autocratic model, the employees were filled with insecurity, frustrations, aggregations towards their superior etc.

The custodial approach depends on economic resources. The resulting managerial orientation is towards money to pay wages and benefits. Since employee’s physical needs are already reasonably met, the employer looks to security needs as a motivating force.

The custodial approach leads to employees’ dependence on the organisation. The organisational dependence is added to a reduced personal dependence on the boss.

Employees working in a custodial environment becomespsychologically preoccupied with their economic rewards andbenefits. As a result of their treatment, they are well maintained,happy and contented, but they are not strongly motivated, so theymay give passive co-operation. The result tends to be that they do not produce much more vigorously than under the old autocraticmodel.

The custodial model shows its emphasis on material rewards, security and organisational dependence. In actual practice, the great benefit of this model is that it brings security and satisfaction to workers.

The weaknesses of this model include that most employees do not produce anywhere of their capacity of which they are capable of. The people are happy but most of them do not feel motivated.

3. Supportive Model: This model had its origin from the”principles of supportive relationships” stated by Rensis Likert. According to him, “the leadership and other processes of the organisation must be such as to ensure the maximum probability that in all interactions and all relationships with the organisation each member will, in the light of his background, values and expectations, view the experience as supportive and one which builds and maintains his sense of personal worth and importance.” It is similar to Human Relations Approach.

This model depends on leadership rather than power or money. Through leadership management provides a climate to help employees grow and accomplish of in the interests of the organisation the things of which they are capable of. The leader here assumes that workers are not by nature passive and resistant to organisational needs but they are made so by an inadequately supportive climate at work. They will take responsibility, develop a drive to contribute, and improve themselves if management will give them a chance. Management’s orientation, therefore, is to support the employee’s job performance, rather than simplysupporting employee benefit payments as in the custodial approach.

As the management supports employees in their work, the psychological result is the feeling of participation and task involvement in the organisation. They are much more strongly motivated than by custodial and autocratic models because their status and recognition needs are better met.

Supportive management style is a part of management’s life style at work, reflected in the way that it deals with other people. The manager’s role is one that of helping employees solve their problems and accomplish their work.

The supportive model works well with both employees and managers, and it has been widely accepted by managers. This model of OB tends to be especially effective in affluent nations because it awakens employee drives towards a wide array of needs. It has less immediate application in the developing nations because their employees’ current needs and social conditions are often quite different.

4. Collegial Model: It is an extention of supportive model. The term ‘collegial’ relates to the body of persons having a common purpose. It is a team concept. This model especially is useful in research laboratories and similar work environments.

The collegial model depends on management’s building a feeling of partnership with employees. The result is that employee feels needed and useful. They feel that managers are contributing also, so it is easy to accept and respect their roles in the organisation. Managers are seen as joint contributors rather than as superiors.

The managerial orientationistowards team work.Management is a coach that builds a better team. The employeeresponse to this situation is responsibility. The psychological result of this approach is that employee is self disciplined. Feeling responsible, employees discipline themselves for performance as the team in the same way that the members of a hockey term are disciplined. In this kind of environment, employees normally feel some degree of fulfillment, worthwhile contribution and self actualization, even through the amount may be modest in some situations. The self actualization will lead to the moderate enthusiasm in performance.

 

Organisational Goals :-

All organisations are purposeful. They are created to achieve some goal or goals. After the organisation achieves these goals, the organisation ceases. Without goals, organisations would be purposeless and chaotic. Goals are the ends towards which the activities of an organisation are directed. The organisational process involves the setting of broad and specific goals of an organisation. Goals determine the shape of future events, provide guidance to thinking, help secure a clear vision, provide singleness of the purpose and a unifying spirit in accommodating ends of the organisation. The vague and confused picture of goals involves dangers of inconsistency, lack of co-ordination, confusion and conflict.

Organisational goals are the purposes that organisation wish to achieve over varying period of time. Goals are the concrete expressions of what an organisation wants to achieve. All activities and resources are directed towards the achievement of these goals.

Characteristics Of Organisational Goals :

Characteristics and features of organisational goals are as follows:

1. Organisational goals are multiple in nature. From top to bottom level of organisation, there is the hierarchy of goals. At thetop there is organisational mission which is very general goal. As we move downward in their hierarchy, goals become specific.

2. Organisational goals may be tangible or intangible. Top level goals are generally intangible while lower level goals are mostly tangible. Some tangible goals (quantitative) are market share, productivity etc. and intangible goals (qualitative) are as measuring manager’s performance, level of employees morale, social responsibility goals etc.

3. Organisational goals are arranged in hierarchy. It means that we have corporate goal (mission) at the top followed by divisional and departmental goals. Then, we have the goals for each section and finally individual goals.

Benefits Of Setting Organisational Goals:

Benefits of setting organisational goals are as follows:

1. Organisational goals are the basic plants. These provide thebasis for developing other types of plans such as strategies, policies, procedure, programme, budget, schedule etc.

2. Organisational objectives eliminate haphazard actions which may result in undesirable consequences.

3. Organisational goals serve as a basis for organisational control by serving the standards against which actual performance can be measured.

4. Organisational goals act as a motivator for individuals and departments of an organisation, numbering their activities with a sense of purpose.

5. Organisational goals lessen misunderstanding and conflictand facilitate communication among people by minimizing jurisdictional disputes.

6. Organisational goals facilitate coordinated behaviour of various groups which otherwise may pull in different directions.

7. Organisational goals facilitate better management of theenterprise by providing a basis for leading, guiding, directing andcontrolling the activities of people of various departments.

 

Types Of Organisational Goals :-

Broadly organisational goals can be categorised into two categories:

1. Official goals

2. Operative and real goals.

1. Official Goals: Official goals justify the existence of organisation. According to Charles Perrow, official goals are general purposes of the organisation as put forth in the charter, annual reports, public statements by key and other authoritative pronouncements, these goals are the source of legitimacy of organisational activities. The organisational resources are deployed to achieve the officially stated goals. Official goals may be vague, public relations gimmics. The top management of an organisation defines official goals in such colourful terms as achieving sufficient profits or market leadership. These abstract phrases have to be turned into real terms by some measure. These are turned into operational terms as the goals filter down throughout the organisation. At each successive level, managers assign real meaning to the goals, and interpret the same according to their perceptions. This may eventually lead to goal displacement.

2. Operative And Real Goals: Operative, actual and real goals are the goals which are actually persued. According to Charles Perrow, operative goals designate the ends sought through the actual operating policies of the organisations. These goals tells us what actually the organisation is trying to do, regardless of what the official goals are. Operating goals use the real measure of control rather than the official goals as the operating goals serve as a bench marks against which the performance of the organisation and its various sub-systems is measured.

Types of operative goals:Charles perrow has classified the operative goals into the following categories:

1. Derived goals

2. Product goals

3. Environmental goals

4. System goals

5. Output goals

 

1. Derived Goals: These refer to the utilisation of the organisation’s resources in derived (or secondary) areas such as promoting social service institutions, rehabilitation of handicapped persons etc.

2. Product Goals: These goals are concerned with the nature and quality of product offered to the customers. The variety, style, innovative qualities, and availability are the important aspects considered.

3. Environmental Goals: Such goals are pursued to satisfy various groups in the external environment of the organisation. Forinstance, a business may propagate customer service, protection ofphysical environment, community development etc.

4. System Goals: These are concerned with conditions with in organisation that are expected to increase its survival potential. The list of system goals is almost endless, since each manager and research links today’s conditions to tomorrow’s existence in a different way. For, many organisations, however, the list includes growth, productivity, stability, harmony, flexibility, prestige and human resource maintenance. For some business concerns, market share, current profitability, innovation and quality also might be considered important system goals.

5. Output Goals: These are concerned with the types of output the firm must produce to meet the demand of the customers. Target markets and customers are identified to achieve output goals. The statement of output goals can form the basis of long term planning for a large organisation.

 

Influence Of Environment On Organisational Goal(s) Setting.

Environment is the key element in determining the organisational goals. As an organisation continuously interact with its environment, environmental forces have a considerable influence on the process of goal determination in any organisation. The organisation as an input output system receives inputs from the environment, transforms these inputs and returns the output to the environment. Hence, organisation takes birth in the environment, grow in the environment and die in the environment. Hence, the role, the environment plays can not be neglected. An organisation interact (as being an open system) interacts with the environment and responds & reacts to the changes that occurred in the environment. This environment effects the way in which the organisation must operate including the goal setting. The organisation has to interact with the environment continuously and to deal with the external environmental forces like customers, trade unions, suppliers, government etc. The intraction of the organisation with the environmental forces may take any of the following forms:

1. Co-optation

2. Competition

3. Coalition

4. Bargaining

 

1. Co-optation: Co-optation is a process of absorbing new elements into the policy-making structure of an organisation as a means of averting threats or maintaining its stability in the changed circumstances. For this reason, business organisations appoint outside directors, employeedirectors or directors representing various interest groups. Through this process, the organisations have to modify their goals.

The co-opted members may not take an active part, but do keep a watch on the happenings in the organisation. They are in a position to determine the occasion for a goal decision, to participate in the analysis of existing situation, to consider alternatives and discuss the consequences thereof. Besides, the co-opted members bring to bear the benefit of their knowledge to the organisation concerned. They not only protect the interests of organisations, but also help in avoiding decisions with undesirable consequences. Co-optation facilitates integration of the diverse interest of heterogeneous elements in the organisation’s environment. It also checks arbitrary or lateral organisational goal setting.

2. Competition: In the environment, organisation exist. There may be some sort of rivalry among the organisations in terms of competition for the same resources or for the same type of clientele. Business firms quite often compete for technology, material resources, financial resources and customers. This is how through competition, environment diverts the resources of society to acceptable channels and avoids misallocation of resources by elimination of inefficient and undesired organisations. Thus, competition is a process whereby the organisation’s choice of goals is partially controlled by the environment. It tends to prevent a unilateral or arbitrary choice of organisational goals, or to correct such a choice, if one is made. The competition in heterogeous society is quite complex. The society judges the organisation not only by the output which it receives from the organisation but also in terms of the desirability of applying resources for the purpose. Even the monopolistic organisations have to compete for the society’s support, unless the society provides such support by approving the action of the organisations, they cannot survive. Competition is, thus a complicated network of relationships.

3. Coalition: Coalition refers to the combination of two or more individuals, groups or organisations for a common goal with a minimum common programme. The coalition is a goal oriented alliance among individuals, groups or organisations with different interests that is formed to mobilise joint resources. The organisation itself is viewed as consisting of a number of groups such as owners, managers, employees, suppliers, government creditors etc. There is a bargaining between/among these members and the goals that are ultimately followed must be acceptable to all the parties.

As we see that our national government is the coalition of nearly 20 political parties and have a minimum common programme. When the differences develop between the members of a coalition on the minimum common programme, there is a threat to the existence of the coalition. But as there is mutual interdependence between the members, the fear of breakdown keeps the coalition together.

4. Bargaining: Bargaining is a negotiation of an agreement between two or more parties for  the exchange of goods or services. It implies flexible rather than rigid position. There is enough scope for a compromise or a mutual give and take before reaching any final agreement to settlement. In organisational context, this process may take place between the organisation and several elements in the environment, for example, suppliers, creditors, trade unions, and so on. The basic requirement of this process is the fixation of negotiated actions or goals.

The agreement on goals specifies a joint preference ordering acceptable to all the participants. The goals of some groups might not be given the weightage they want. Such groups may be offered side payments, such as economic benefits, autonomy, personal treatment etc. They may also be successful is getting policy commitments from the management such as time bound competition.