BBA 2nd Semester Organisation Behavior Notes

BBA 2nd Semester Organisation Behavior Notes 

BBA 2nd Semester Organisation Behavior Notes :- 

BBA 2nd Semester Organisation Behavior Notes
BBA 2nd Semester Organisation Behavior Notes

Organisation Behavior and Its Analysis

Introduction and Concept

An organisation is a social system wherein its members try to achieve their goals while achieving the organisational goals. Organisations are created by people to benefit people. Organisations do not have an inherent right to exist; instead, they exist, only because people have created them as mens of achieving worthwhile objectives.

We are born in organizations, educated by organizations and most of us spend much of our lives, working for organizations. The study of people in organizations is vital for the managers and organizational behavior scientists. We spend most of our time interacting with organization such as family, social organizations, educational institutions, hospitals, religious organizations, work organizations, business enterprises, government organizations, and so on. Almost all organizations are different. But they have certain common features. All are collections of people linked together by formal and informal relationships.

“Organisation is consciously coordinated social entity, with a relatively identifiable boundary, that functions on a relatively continuous basis to achieve a common goal or set of goals.”        -Robbins

“Organisation is to determine the activities to accomplish a job and arrange the distribution of activities among the people.”       -L. Urwick


The main characteristics of an organisation are:

  • Co-ordination : The fact remains that the very idea of organising stems from the saying “united we stand and divided we fall” or Unity is the strength.”
  • Common Goal : Though organisational members have their own individual goals, but they also share common goal to be achieved. For example, universities like Assam Central University, are expected to produce products.
  • Division of Labour : Organization consists of many sub-system, popularly known as ‘division of labour’. Division of labour implies dividing work into narrow parts to perform the work efficiently. Your own BBA Programme is an appropriate where different specialized papers are taught by the teachers having the relevant specialization.
  • Integration : Different functions performed by different persons in an organization need to be combined together so as to achieve the consensual goal of the organisation. This is called ‘Integration’.
  • Conscious Rationality : There is a deliberate attempt on the part of organisation to specify norms and standards for every action and behavior of its members.
  • Continuing System : An organisation may outlast its creator by century. Members may join and leave the organisation. But organisation continues and enjoys eternal entity.
  • Structure : Organisation structure refers to how tasks are to be allocated, who reports to whom, and the formal coordinating mechanisms and interaction patterns that will be followed.


BBA 2nd Semester Nature of organisation Notes
BBA 2nd Semester Nature of organisation Notes

The nature of the organisation can be discussed by following concepts :

  • Organisation as a Group : Organisation can be defined as an identifiable group of people who contribute their efforts towards the attainment of goals. People form groups or organisation and pool their efforts by defining and dividing various activities. Responsibility and authourity.
  • Organization as a process : As a process, organisation is concerned with arranging in a logical and orderly manner the activities of all the employees, it specifies how the duties are to be divided among the departments and the employees, it also creates relationship of one job to another and lays down the scope or limits of authourity and responsibility.
  • Organization as a structure : Organisation structure is the structure of human relationships or the network of horizontal and vertical dimensions designed to accomplish common objectives. It is a and staff structures. Structure denotes the pattern of relationships among positions and jobs with the objective of accomplishment of enterprise objectives.
  • Organization as a social system : The existence of social implies that the organization environment is one of the dynamic changes, rather than the static set of relations. All parts of the system are interdependent and subject to influence by any other part. From sociology, we learn that organizations are social systems. Consequently, activities therein are governed by social laws as well as psychological laws.


BBA 2nd Semester Organisation Behavior Notes
BBA 2nd Semester Organisation Behavior Notes


  • Formed on the basis of mutual interest : Mutual interest is represented by the statement “Organization need people, and people also need organization.” Organization have a human purpose. They are formed and maintained on the basis of some mutuality of interest among the participants.



Organizational behavior is and exciting field of study concerned with the study of human behavior in organizations. The term organizational behavior is composed of two words, namely organization and behavior. An organization is consciously coordinated social unit composed of two or more persons that functions on a relatively continuous basis to achieve some common goals. In simple words behavior is reaction to stimulus. It is basically goal oriented in other words. Our behavior is generally motivation by desire to attain a goal. Thus organization behavior is concerned with study of behavior of people within the organizational setting.

Organizational behavior is a part of total, management but plays a very important role in every area of management and is accepted by all the people concerned. The term organizational behavior actually refers to behavior of people in the organization because organization themselves do not behavior. Organization behavior thus tries to understand human behavior in the organization.



Like all other disciplines/subject OB is also based on certain key elements also called ‘fundamental concepts or assumptions’. There are four key elements in OB. These are Individual and group, organization structure, technology, and environment.

  1. Individual and group: people make the internal social system of the organization. They consist of individuals and groups (large as well as small). There are informal as well as formal groups. Each individual has his own physical, psychological and social, needs for which he uses his own traits and experiences. His work behavior is influenced not only by his biological inheritance, but also by his interactive environment, viz. family relationships, racial background, social setup, religious beliefs, technological perceptions, learning and personality to shape their work behavior. Their desires, needs wants, attitudes and experiences shape their work behavior. The study of these factors would help management to mould the behavior of employee for achieving organizational objectives.
  2. Organizational Structure : Individuals and groups operate within the structure of formal organization. The structure establishes the relationships of people in an organization. It leads to division of labour so that people can perform their duties to accomplish the organizational goals. Different jobs are required to accomplish all of an organisation’s activities. For example, there are managers and employees, accountants and assemblers. These all people performing different jobs at different levels have to be related in some structural way so that their work can be effectively coordinated.
  3. Technology : Technology has a significant influence on work the work environment and working relationships. It provides the resources with which people work and affects the task that they perform. Apply specialized knowledge. The use of scientific methods and latest technology effect the behavior of individuals and groups at work.
  4. Environment : All organizations operate within an external environment. A single organization does not exist alone. It is a part of a large system that contains many other elements, such as government, the family and other organizations. The external environment affects the organization through techonological and scientific development. Economic activity social and cultural influences and government actions. The changes in environmental conditions may compel the management to bring changes in the internal organizational relationships.


Organizational behavior is multidisciplinary studies join mainly from important behavioral sciences like psychology, sociology, social psychology, anthropology, and political science. The main contribution of organization behavior is understanding and using processes which can also be defined as various behavioral dimensions which are part of an organization. Organizational behavior offers several ideas to management as to how the human factor should be properly used to achieve organization objectives. The human factor is not only an instrument in the organization but the very core of organization existence. Organizational behavior helps managers in many areas like use of power and its sanction, leadership, communication and building organization favorable for better interaction.

  1. Use of power and sanction: power is referred as the capacity of an individual to take certain actions which can be utilized in many but it is not necessary that all the ways of using power are equally effective. Organizational behavior explains different means by which the power should be sanctioned and utilized so that both organizational and individual objectives are achieved at the time.
  2. Communication: Communication is a building block of an organization. To achieve organizational objectives communication must be effective. OB helps to evaluate the importance of communication processes in the organization as it helps to understand ourselves and others in a better way. It helps greatly in improving interpersonal relations in the organization.
  3. Motivation: The knowledge of OB helps the managers to know individual employees and motivate them accordingly for better results. By analyzing their needs and behavior different motivational techniques can be used by the managers to motivate their subordinates.
  4. Leadership: Success of an organization these days depend on the type and quality of leadership styles followed by the managers. OB helps to view and understand different theories and styles of leadership by creating new dimensions. It identifies what are different leadership styles and which are more appropriate for a particular situation.
  5. Interpersonal relationship: OB helps an individual to understand himself and others in a better way. The significant topics in OB like attitude, perception, personality, motivation and transactional analysis helps in a better understanding of human behavior. OB helps to tackle human problems effectively. By treating employees as human beings it helps to maintain cordial industrial relation between employees and employers which help to foster peace and harmony in the organization.
  6. Organization Climate : Organization climate refers to total organizational situations affecting human behavior, it gives a total approach to the organizational climate as it not only considers satisfactory working conditions and adequate compensation but also realizes the significance of good relations at the workplace, effective supervision, atmosphere of mutual trust, sense of accomplishment as important constituents for good organization climate.
  7. Organization adaptation: Organization change is required to maintain equilibrium between various external and internal forces to achieve various organizational goals. But general tendency and initial reaction to the change is resistance. Managers have to face dual problems i.e. one is correct identification of change and another is how to implement change. OB helps to understand individual needs and implement change in a way so that people have willing full acceptance to change and they should modify their accordingly.


Understanding organizational behavior has become all the more important for managers. A quick look at a few of the dramatic changes now taking place in organizations supports this claim. For, instance, the typical employee is getting older, more and more women and nonwhites are forming an important part of the workplace; corporate downsizing and the heavy use of temporary workers are severing the bonds of loyalty that historically tied many employees to their employees; and global competition is requiring employees to become more flexible and to learn to cope with rapid change.

In short, it’s becoming essential for managers for which OB offers solutions or at least some meaningful insights towards solutions:

  1. Responding to globalization: Today’s businesses are not limited to their native countries and crossing the boundaries of their countries. It is quite possible today that a manager is from one country and staff and market is from another.

It is a growing challenge to understand the needs preferences and attitudes of other cultures in order to better satisfy them and provide them better services. Business operations are no longer restricted to a particular locality or region. Company’s products or services are spreading across the nations using mass communication, internet, faster transportation, etc.

  1. Workforce diversity: Today’s workforce becomes diverse. It includes different age groups, gender, races. Managing workforce diversity has become a global concern. The primary reason to employ the heterogeneous category of employees is to tap the talents and potentialities, harnessing the innovativeness, obtaining synergetic effect among the divorce workforce. In general, employees wanted to retain their individual and cultural identity, values and lifestyles even though they are working in the same organization with common rules and regulations. The major challenge for the organization is to become more accommodating to diverse groups of people by addressing their different lifestyles, family needs, and work styles.
  2. Improving quality and productivity: Companies are rapidly starting their operations in other parts of the world, thus resulting in increased competition.

in order to gain their share, the companies have to provide good quality. Quality is the extent to which the customers or user believe the product or service surpasses their needs and expectations. They key dimensions of quality are performance, features conformance, reliability, durability, service, response, aesthethics, response etc.

  1. Total Quality Management (TQM) : It is a philosophy of management that is driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational process. The components of TQM are (a) intense focus of the customer; (b) concern for continual improvement; (c) Improvement in the quality of everything the organization does;(d) accurate measurement and (e) empowerment of employees.

Reengineering : This refers to discrete initiatives that are intended to achieve radically redesigned and improved work process in a bounded time frame.

  1. Empowering people :
  • Empowering employees in the organization in the organizations is considered the key of success.
  • Even decision making is being pushed down to operational level.
  • The concept of self managed teams is emerging in business world.
  • Coping with temporariness jobs are become more divers, the employees have to update their knowledge continuously, they all have to know to operate computers, and other latest communication tools, and should be ready to fill temporary work related decision will sizable enhance their commitment at work.

The main issue is delegating more power and responsibility to the lower level cadre of employees and assigning more freedom to make choices about their schedules, operations, procedures and the method of solving their work-related problems. Encouraging the employees to participate in work related decision will sizably enhance their commitment at work.

  1. Working in Networked organization : The internet and the ability to link computer within organizations and between organization have created a different workplace for many employees. It allows people to work together even they may be thousand of miles apart.

Four Models of Organization Behaviour 

Autocratic Custodial Supportive Collegial
Basis of Model


Power Economic Leadership Partnership
Managerial orientation Authority Money Support Teamwork

Psychological result

Dependence on boss Dependence on Organisation Participation Self-discipline
Employee needs met Subsistence Security Status and recognition Self-actualization
Performance result Minimum Passive comperation Awakened drives Moderate enthusiasm



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Montey Parjapati



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