Author: Rashmi Kumari

In this article, you’ll learn about approaches to Organizational Behaviour. Studying approaches to organizational behavior is valuable for several reasons, as it provides insights into understanding, managing, and improving the dynamics within an organization.

Organizational Behavior relates to the relationship between employees and the employer in an organization.

Both are working towards the realization of the goals and objectives of any organization, and a close and fruitful coordination between the two is one of the major factors towards this realization.

Organizational behavior approaches are a result of the research done by experts in this field.

There are 5 Approaches to Organizational Behaviour

1. Human resources (supportive) approach 

The human resources approach is developmental. It is concerned with the growth and development of people towards higher levels of competency, creativity, and fulfillment because people are the central resource in any organisation and any society. The nature of the human resources approach can be understood by comparing it with the traditional management approach in the early 1900s.

In the traditional approach, managers decided what should be done and management was directive and controlling. The human resources approach, on the other hand, is supportive. It helps employees become better, more responsible persons and then tries to create a climate in which they may contribute to the limits of their improved abilities. Essentially, the human resources approach means that better people achieve better results.

Give a person a fish, and you feed that person for a day, Teach a person to fish, and you feed that person for life.

2. Contingency approach

Traditional management relied on the principle of ―one best way of managing. There was a correct way to organize, delegate, and divide work. The correct way is applied regardless of the type of organisation or situation involved. The contingency approach to organizational behaviour means that different situations require different behavioural practices for effectiveness.

No longer is there a one best way. Each situation must be analysed carefully to determine the significant variables that exist in order to establish the kinds of practices that will be more effective. The strength of the contingency approach is that it encourages analysis of each situation prior to action, while at the same time discouraging habitual practice based on Universal assumptions about people.

The contingency approach also is more interdisciplinary, more system oriented, and more research-oriented than the traditional approach. Thus it helps to use in the most appropriate manner all the current knowledge about people in organisations.

3. Productivity approach

Productivity is a ratio that compares units of output with units of input. If more outputs can be produced from the same amount of inputs, productivity is improved or if fewer inputs can be used to produce the same amount of outputs, productivity has increased.

The idea of productivity does not imply that one should produce more output; rather it is a measure of how efficiently one produces whatever output is desired. Consequently, better productivity is a valuable measure of how well resources are used in society. It means that less is consumed to produce each unit of output. There is less waste and better conservation of resources.

Productivity often is measured in terms of economic inputs and outputs, but human and social inputs and outputs are also important, For example. if better organizational behaviour can improve job satisfaction, a human output or benefit occurs. In the same manner, when employee development programmes lead to a by-product of better citizens in a community, a valuable social output occurs.

Equations showing the role of organizational behaviour is work systems

Knowledge X skill                           =          Ability

Attitude X situation                         =         Motivation

Ability X Motivation                      =         Potential human performance

Human performance X Resources  =          Organizational productivity

4. Systems Approach

A system implies that there are many variables in organisations and that each of them affects all the others in a complex relationship. All people in organisations should be concerned with improving organizational behaviour.  Managers represent the administrative system and their role is to use organizational behaviour to improve people – organisation relationships as shown in the following figure.

Managers try to build a climate in which people are motivated work together, productively, and become more effective persons.

When organizational behaviour is applied with a systems approach it creates a triple reward system in which human, organizational and social objectives are met. People find more satisfaction in work when there is cooperation and teamwork. They are learning to grow and contribute. The organization also is more successful, because it operates more effectively.

Quality is better and costs are less. Perhaps the greatest beneficiary of the triple reward system is society itself; because it has better products and services, better citizens and a climate of co-operation and progress.

5. Interdisciplinary Approach

This approach advocates that efficiency can be attained by finding the right methods to get the job done through specialization on the job by planning and scheduling, by using standard operating mechanisms, establishing standard time to do the job, by proper selection and training of personnel and through wage incentives.

A perceptual error is the inability to judge humans, things or situations fairly and accurately. Examples could include such things as bias, prejudice, stereotyping, which have always caused human beings to error in different aspects of their lives

Sources of errors in perception

The main sources of errors in perception include the following:

• Not collecting enough information about other people. 
• Basing our judgements on information that is irrelevant or insignificant. 
• Seeing what we expect to see and what we want to see and not investigating further.
• Allowing early information about someone to affect our judgement despite later and contradictory information. 
• Accepting stereotypes uncritically. 
• Allowing our own characteristics to affect what we see in others and how we judge them. 
• Attempting to decode non-verbal behavior outside the context in which it appears. Basing attributions on flimsy and potentially irrelevant evidence. 

The process of making evaluations, judgements or ratings of the performance of employees is subject to a number of systematic perception errors. This is particularly problematic in a performance appraisal context. These are: 

• Central tendency: Appraising everyone at the middle of the rating scale. 
• Perception Contrast error: Basing an appraisal on comparison with other employees rather than on established performance criteria. 
• Different from me: Giving a poor appraisal because the person has qualities or characteristics not possessed by the appraiser. 
• Halo effect: Appraising an employee undeservedly on one quality (performance, for example) because s/he is perceived highly by the appraiser on another quality (attractiveness). 
• Horn effect: The opposite of the halo effect. Giving someone a poor appraisal on one quality (attractiveness) influences poor rating on other qualities. (performance). 
• Initial impression: Basing an appraisal on first impressions rather than on how the person has behaved throughout the period to which appraisal relates.
• Latest behavior: Basing an appraisal on the person’s recent behavior.
• Lenient or generous rating: Perhaps the most common error, being consistently generous in appraisal mostly to avoid conflict.
• Performance dimension error: Giving someone a similar appraisal on two distinct but similar qualities, because they happen to follow each other on the appraisal form.
• Same as me: Giving a good appraisal because the person has qualities or characteristics possessed by the appraiser. 
• Spill over effect: Basing this appraisal, good or bad, on the results of the previous appraisal rather than on how the person has behaved during the appraisal period.
• Status effect: Giving those in higher level positions consistently better appraisals than those in lower level jobs.
• Strict rating: Being consistently harsh in appraising performance.

Types of perceptual errors in workplace

There are many types of perceptual errors in workplace

1.Selective Perception-People generally interpret according to their basis of interests,idea and backgrounds.It is the tendency not to notice and forget the stimuli that cause emotional discomfort.For example we might think that fresher graduates with above 80 % marks will exceptionally do well in technical interviews of respective subjects

2.Halo Effect-We misjudge people by concentrating on one single behavior or trait.It has deep impact and give inaccurate result most of the time.For example we always have an impression of a lazy person can never be punctual in any occasion.

3.Stereotypes-We always have a tendency to classify people to a general groups /categories in order to simplify the matter.For example-Women are always good homemakers and can do well in work life balance

4.Contrast Effect-We again sometimes judge people in comparison to others . This example generally found in sports,academics and performance review

5.Projection-This is very common among Perceptual errors.Projection of one’s own attitude,personality or behavior into some other person.For example- To all honest people,everybody is honest.

6.Impression-We all know the term “first impression is the last impression” and we apply that too .For example-During the time of hiring, thought like this “The most decent and modest person in the interview can do very well in every roles and responsibilities ” always arise.

Errors in perception can be overcome by

• Taking more time and avoiding instant or `snap’ judgements about others. 
• Collecting and consciously using more information about other people. 
• Developing self-awareness and an understanding of how our personal biases are preferences affect our perceptions and judgements of other people. 
• Checking our attributions – particularly the links we make between aspects of personality and appearance on the one hand and behaviour on the other.

Therefore, it can be said that if we are to improve our understanding of others, we must first have a well-developed knowledge of ourselves — our strengths, our preferences, our weaknesses and our biases. The development of self-knowledge can be an uncomfortable process.

In organizational settings, we are often constrained in the expression of our feelings (positive and negative) about other people due to social or cultural norms and to the communication barriers erected by status and power differentials. This may in part explain the enduring emphasis in recent years on training courses in social and interpersonal skills, self-awareness and personal growth.

What is Leadership ?

Leadership is the interpersonal influence exercised in a situation and directed through the communication process, towards the attainment of a specialized goal or goals.

Leadership involves:

1. establishing a clear vision,
2. sharing that vision with others so that they will follow willingly,
3. providing the information, knowledge and methods to realize that vision, and
4. Co-ordinating and balancing the conflicting interests of all members and stakeholders.

Nature of Leadership

There are two main approaches to leadership—traitist and situationist. In the early times leadership was considered to originate from the personal qualities of the leader and insufficient attention was given to the contribution of the group structure and situation.

The early studies focused their attention on certain traits to compare leaders with non-leaders. Later studies, however, revealed the fallacy of the traitist approach. Gibb remarked that the leader traits are relative to a specific social situation and are not exhibited in isolation.

He pointed out that attempts to find a consistent pattern of traits that characterize leaders had failed and said that the attributes of leadership are any or all of those personality characteristics that in any particular situation make it possible for a person either to contribute to achievement of a group, goal or to be seen as doing so by other group members. The person who becomes a leader surpasses others in some qualities required by the goal in the particular situation.

The situationist approach to leadership provides a corrective to the traitist approach which regarded leaders as uniquely superior individuals who would lead in whatever situation or time they might find themselves. 

The situationist approach emphasizes that leadership is specific to a specific situation. It is a way of behaving exhibited by individuals in differing degrees in different situations. A leader in one group is not necessarily a leader in another. A leader in the class may not be a leader in the playground.

Though leadership may be considered as behaviour specific to a given situation, yet it does not mean that there is no generality of traits on the basis of which certain persons may be rated leaders. Carter noted correctly that if leadership is absolutely specific to a given situation then it cannot be a subject of scientific analysis and generalization.

It may also be mentioned that the leader is necessarily a part of a group and leadership is status and role in that group. It is obvious that leadership can occur only in relation to other people. No one can be a leader all by himself. The relationships which the leader bears to other individuals are status and role relationships. He is part of the group structure and as such he carries on reciprocal relationship with other members of the group.

In sum,

• Leadership is not a personality trait, it is a way of relating oneself to others. Leadership accrues to those who take account of others in ways that facilitate group life and group cohesion. In other words, leadership is functional in two senses: it is a function of inter-personal relations it has a function in group life.
• Leadership is situational; who the leaders are depends upon the concrete circumstances. A leader in one group is not necessarily a leader in another.

Styles of Leadership

1. Autocratic or Authoritarian leadership

An autocratic leader centralizes power and decision-making in himself. He gives orders, assigns tasks and duties without consulting the employees. The leader takes full authority and assumes full responsibility.

Autocratic leadership is negative, based on threats and punishment. Subordinates act as he directs. He neither cares for their opinions nor permits them to influence the decision. He believes that because of his authority he alone can decide what is best in a given situation.

Autocratic leadership is based upon close supervision, clear-cut direction and commanding order of the superior. It facilitates quick decisions, prompt action and unity of direction. It depends on a lesser degree of delegation. But too much use of authority might result in strikes and industrial disputes. It is likely to produce frustration and retard the growth of the capacity of employees.

The employees work as hard as is necessary to avoid punishment. They will thus produce the minimum which will escape punishment.

This leadership style is less likely to be effective because

• The new generation is more independent and less submissive and not amenable to rigid control.
• People look for ego satisfactions from their jobs.
• Revolution of rising expectations changed the attitude of the people.

Autocratic leadership may be divided into three classes:

• The hard-boiled autocrat who relies mainly on negative influences uses the force of fear and punishment in directing his subordinates towards the organisational goals. This is likely to result in employees becoming resentful.
• The benevolent autocrat who relies mainly on positive influences uses the reward and incentives in directing his subordinates towards the organisational goals. By using praise and pats on the back he secures the loyalty of subordinates who accept his decisions.
• The manipulative autocrat who makes the employees feels that they are participating in decisionmaking though the manager himself has taken the decision. McGregor labels this style as Theory X.

2. Democratic or Participative leadership

Participative or democratic leaders decentralise authority. It is characterised by consultation with the subordinates and their participation in the formulation of plans and policies. He encourages participation in decision-making.

He leads the subordinates mainly through persuasion and example rather than fear and force. Sometimes the leader serves as a moderator of the ideas and suggestions from his group. McGregor labels this style as Theory Y.

Taylor’s scientific management was based on the inability of the ordinary employees to make effective decisions about their work. Hence the decision-making power was vested with the management. But recent studies indicate the need for participation by subordinates. The modern trend favours sharing the responsibility with the employees.

This will foster enthusiasm in them. The employees feel that management is interested in them as well as in their ideas and suggestions. They will, therefore, place their suggestions for improvement.

Advantages for democratic leadership are as follows: (i) higher motivation and improved morale; (ii) increased co-operation with the management; (iii) improved job performance; (iv) reduction of grievances and (v) reduction of absenteeism and employee turnover.

3. The Laissez-faire or Free-rein leadership

Free-rein leaders avoid power and responsibility. The laissez-faire or non-interfering type of leader passes on the responsibility for decision-making to his subordinates and takes a minimum of initiative in administration. He gives no direction and allows the group to establish its own goals and work out its own problems.

The leader plays only a minor role. His idea is that each member of the group when left to himself will put forth his best effort and the maximum results can be achieved in this way. The leader acts as an umpire. But as no direction or control is exercised over the people, the organisation is likely to flounder.

Specific leadership styles

1. Transactional Leadership

This style starts with the idea that team members agree to obey their leader when they accept a job. The “transaction” usually involves the organization paying team members in return for their effort and compliance on a short-term task. The leader has a right to “punish” team members if their work doesn’t meet an appropriate standard.

Transactional leadership is present in many business leadership situations, and it does offer some benefits. For example, it clarifies everyone’s roles and responsibilities. And, because transactional leadership judges team members on performance, people who are ambitious or who are motivated by external rewards – including compensation – often thrive.

The downside of this style is that, on its own, it can be chilling and amoral, and it can lead to high staff turnover. It also has serious limitations for knowledge-based or creative work.

As a result, team members can often do little to improve their job satisfaction.

2. Transformational Leader

A transformational leader is a type of person in which the leader is not limited by his or her followers’ perception. The main objective is to work to change or transform his or her followers’ needs and redirect their thinking. Leaders that follow the transformation style of leading, challenge and inspire their followers with a sense of purpose and excitement. They also create a vision of what they aspire to be, and communicate this idea to others (their followers). According to Schultz and Schultz, there are three identified characteristics of a transformational leader:

• Charismatic leadership has a broad knowledge of field, has a self-promoting personality, high/great energy level, and willing to take risk and use irregular strategies in order to stimulate their followers to think independently
• Individualized consideration
• Intellectual stimulation

The transformational leadership style depends on high levels of communication from management to meet goals. Leaders motivate employees and enhance productivity and efficiency through communication and high visibility. This style of leadership requires the involvement of management to meet goals. Leaders focus on the big picture within an organization and delegate smaller tasks to the team to accomplish goals.

Groups are social entities formed by individuals with shared interests, goals, or characteristics. Emerging from human needs, groups vary in structure, purpose, and dynamics, shaping diverse interpersonal connections.

What is Group?

It is a collection of two or more interacting individuals with a stable pattern of relationship between them, who share common goals and who perceive themselves as being a group.

Group Development Process/ Stages

The group development process, also known as team development, refers to the stages that groups go through as they form, learn to work together, and achieve their goals. The most widely recognized model of group development is Tuckman’s stages of group development, which outlines five distinct stages:

1. Forming: In this initial stage, group members get to know each other, establish ground rules, and explore their roles within the group. There is often a sense of uncertainty and politeness as members try to make a good impression.

2. Storming: As the group delves deeper into its work, differences in opinions, working styles, and personalities can emerge, leading to conflict and competition. This stage can be challenging, but it is also necessary for the group to develop trust and open communication.
3. Norming: Through open communication and compromise, the group begins to establish norms and expectations for behavior, communication, and decision-making. This stage is crucial for building team cohesion and creating a positive work environment.
4. Performing: In this stage, the group has matured and is able to function effectively as a unit. Members collaborate efficiently, solve problems creatively, and achieve their goals.
5. Adjourning (optional): If the group is temporary, it will eventually reach a stage where it needs to disband. This stage involves completing tasks, saying goodbye, and reflecting on the group experience.

Types of Groups

One way to classify the groups is by way of formality – formal and informal.

Formal Groups

• Definition: Defined by an organization or institution with a specific purpose or task. They have a predetermined structure with designated roles, rules, and procedures.
• Examples: Work teams, committees, sports teams, project teams, government agencies.
• Characteristics:
  • Explicit hierarchy and leadership.
  • Clearly defined goals and objectives.
  • Established rules and procedures to guide behavior.
  • Focus on achieving organizational goals efficiently.
  • Communication often follows formal channels.

Command Groups:

Definition: Command groups are hierarchical structures defined by an organization chart. They consist of a supervisor and their direct reports, forming a chain of command for decision-making and tasks.

Example: A market research firm CEO and their research associates form a command group. Here, the CEO leads and assigns tasks to the associates, who report directly back to them.

Key characteristics:

• Clear hierarchy and leadership: Decisions and tasks flow from the supervisor down to the subordinates.
• Formal structure: Roles and responsibilities are clearly defined based on positions within the hierarchy.
• Focus on efficiency: The primary goal is to achieve objectives efficiently through established procedures.

Task Groups:

Definition: Task groups are temporary ensembles formed to achieve a specific, focused goal within a defined timeframe. These groups, often called task forces, are disbanded once the goal is achieved.

Examples:

• A team developing a new product.
• A group improving a production process.
• A committee designing a syllabus.
• Ad hoc committees for specific complaints or process development.
• Project groups focusing on specific initiatives.
• Standing committees for ongoing tasks like quality control.

Key characteristics:

• Shared goal: Members are united by a defined objective they work together to accomplish.
• Time-bound: The group exists only for the duration needed to complete the assigned task.
• Flexible structure: Roles and responsibilities may be adaptable depending on the task requirements.
• Collaborative approach: Success relies on teamwork and effective communication among members.

Functional Groups:

Definition: Functional groups are permanent structures within an organization established to achieve specific, ongoing goals. Unlike task groups, they continue to exist even after completing their initial objectives.

Examples:

• Marketing department responsible for promoting and selling products.
• Customer service department handling customer inquiries and issues.
• Accounting department managing financial records and transactions.

Key characteristics:

• Enduring structure: The group has a defined structure and remains in place over time.
• Ongoing goals: Focuses on achieving consistent objectives within its functional area.
• Specialized expertise: Members possess skills and knowledge specific to their function.
• Collaborative workflow: Teams within the group work together towards shared departmental goals.

Informal Groups

• Definition: Form organically based on shared interests, friendships, or common experiences. They lack a formal structure and often arise spontaneously.
• Examples: Friend groups, hobby clubs, online communities, support groups.
• Characteristics:
  • Flexible and dynamic structure.
  • Loosely defined goals and objectives, focused on social interaction and support.
  • Informal rules and norms established by members.
  • Emphasis on building relationships and social connection.
  • Communication flows freely and organically.

Interest Groups:

• Definition: Enduring groups united by a shared interest beyond organizational goals.
• Characteristics: Long-lasting, informal structure, diverse composition, specific goals unrelated to organizational objectives.
• Example: Students forming a study group for a specific class.

Friendship Groups:

• Definition: Informal groups based on shared activities, beliefs, or values.
• Characteristics: Formed voluntarily, enjoy shared activities outside work, provide social connection.
• Example: Employee yoga group, regional cultural association, monthly kitty party lunch group.

Reference Groups:

• Definition: Groups individuals use for self-evaluation and comparison.
• Characteristics: Shape behavior through social validation and comparison, influence attitudes and values.
• Examples: Family, friends, religious affiliations.

Primary Groups:

• Definition: Small, intimate groups with close personal interaction and high interdependence.
• Characteristics: Key to socialization, develop and sustain attitudes, values, and orientations.
• Examples: Family, close friend circles.

Secondary Groups:

• Definition: Larger, formal groups with less frequent, impersonal interaction.
• Characteristics: Supplement primary socialization, often organized around shared interests or goals.
• Examples: Trade unions, member organizations (National Trust).

In this article, you’ll learn about Conceptual Framework For Organizational Behaviour, Organizational behaviour follows the principles of human behaviour, Organizational Behaviour is situational and more.

A conceptual framework for understanding organizational behaviour is presented by Durbin consisting of four core propositions, which are:

1. Organizational behaviour follows the principles of human behaviour.
2. Organizational behaviour is situational.
3. Organizational behaviour is based on system approach.
4. Organizational behaviour represents a constant interaction between structure and process variables.

Organizational behaviour follows the principles of human behaviour 

Human beings in the organization are governed by the same physiological mechanisms both on and off the job.  Internal mechanism s provide people an extra spurt of the appropriate harmone during times of stress, whether this stress is job or non – job related.  Similarly, people at work are governed by the same psychological principles both inside and outside organizational life.  Organizational behaviour is human behaviour in a particular setting.

Organizational Behaviour is situational

Psychologists and other behvaioural scientists have emphasized for years that individual is a function of the interaction between personal characteristics of the individual and environmental variables.  In order to understand a person’s behaviour, the pressures placed upon him in a given situation must be understood.  Aggressive behvaiour, for example, surfaces when a normally calm individual is forced into constant and close physical proximity with other people.

Pigors and Myres developed the concepts of situational thinking. Their analysis suggests that four situational variables are basic for anyone responsible for getting results accomplished through people.  

These are:

1. The human element such as individual differences.  This category includes interpersonal relationships and other social aspects of the situation.
2. The technical factor such as production methods and equipment, management procedure, and specialized skills in any job function.
3. Space – time dimensions and relationships such as the size and location of a plant, office or work – station.
4. Organizational wide policies designed to achieve major organizational objectives.

Organizational Behaviour is based on system approach

Systems thinking is an integral part of modern organization theory.  Organizations are viewed as complex systems consisting of inter – related and inter – locking sub – systems.  Changes in any one part of the system has both known and unknown consequences in other parts of the system. 

When modifications in the system lead to desired, positive consequences, they are called functions.  Unintended consequences in response to modification in the systems are called dysfunctions.  According to the system point of view, every inter – action has both functions and dysfunctions.

Organizational Behaviour represents a constant interaction between structure and process variables

Structure refers to organizational design and position.  Process refers to what happens, with or without the structure.  A retail store may use both formal advertising and public relations functions (structure) to help build its image in the community.  However, most of the store’s image is formed by words of mouth from satisfied and dissatisfied customers and employees.

Processes emerging within a group or organization are often evident only after they are heading towardss completion.  It is almost structural requirement in any organization that managers deal with the discontents of their people, yet employees sometimes find other processes for handling them.

The difference between structure and process represents a vital concept for understanding organizational behaviour.  Classical approaches to management neglected interpersonal processes – the human side of organization life. 

Erring in the opposite direction (neglecting the influence of structural and technological factors) is a tendency on the part of some social psychologists.  Deeper understanding of organizational behaviour requires an ability to follow the complex shifting in relative importance between structure and process variables.