Organization Behavior Concept

HISTROCIAL DEVELOPMENT OF ORGANIZATIONAL BEHAVIOURA PROJECT in the subject of Organizational BehaviourSUBMITTED TOUNIVERSITY OF MUMBAIFOR SEMESTER -III OFMASTER OF COMMERCEBY.KHAN MOHD.MOHSINRoll No.(10)Specialization: Business ManagementUNDER THE GUIDANCE OFDr. SANGEETA PAWAR YEAR - 2014-15

DECLARATION BY THE STUDENT

I, Shri Khan Mohd. Mohsin, student of M. Com. Part-II Roll Number (10), at the Department of Commerce, University of Mumbai do hereby declare that the project titled, Historical development of organizational behaviour submitted by me in the subject of Organizational Behaviour for Semester III during the academic year 2014-15, is based on actual work carried out by me under the guidance and supervision of Dr Sangeeta Pawar.I further state that this work is original and not submitted anywhere else for any other examination.

Date 29Th september 2014Mumbai

Signature of Student

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the project on Historical development of organizational behaviour in the subject of Organizational Behaviour submitted by Kum/Smt/Shri Khan Mohd. Mohsin , student of M. Com. Part-II at the Department of Commerce, University of Mumbai for Semester III during the academic year 2014-15.This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Internal Examiner External ExaminerDirector Dr. Vivek Deolankar

University of MumbaiDepartment of Commerce Internal Assessment: Subject: Organizational BehaviourName of Student ClassBranchRoll Number

First Name : MOHD MOHSINFathers : MOHD MOINSurname : KHANM.COMPART -IIBusiness Management10

Topic for the Project: Historical development of Organizational behaviour

Marks AwardedSignature

DOCUMENTATIONInternal Examiner (Out of 10 Marks)

External Examiner (Out of 10 Marks)

Presentation(Out of 10 Marks)

Viva and Interaction(Out of 10 Marks)

Total Marks(Out of 40 Marks)

CONTENTSS.No.ParticularP. No.

1Chapter 1- Introduction

1.1Concept of organizational behaviour1

1.2Definition of Organizational Behaviour2-4

1.3Nature and characteristics Organizational Behaviour 5-7

Chapter 2 Details of Historical development

2.1Historical development of Organizational Behaviour8-9

2.2Specific Contributions10-11

2.3Human Relations Movement12-14

2.4The Basic philosophy of human relations15

2.5Contributions of different disciplines to organizational behaviour16-19

2.6Emerging challenges in organizational behaviour20-24

Chapter 3 Summary of the project

3.1Conclusion 25

3.2Bibliography 26

HISTORICAL DEVELOPMENT OF ORGANIZATION BEHAVIOURChapter-11.1 CONCEPT OF ORGANIZATIONAL BEHAVIOURUnderstanding one individual's behaviour is a challenging problem in and of itself. The work of organizations gets done through the behaviour of people, individually or collectively, on their own or in collaboration with technology. Thus, central to the management task is the management of organizational behaviour. To do this, there must be the capacity to understand the patterns of behaviour at individual, group, and organization levels, to predict what behaviour responses will be elicited by different managerial actions, and finally to use understanding and prediction to achieve control.Organizational behaviour is the study of what people do in an organization and how that behaviour affects the performance of the organizations. It is an academic discipline concerned with describing, understanding, predicting, and controlling human behaviour in an organizational environment.

1.2 DEFINITION OF ORGANIZATIONAL BEHAVIOURAccording to S.P. Robbins, "Organizational Behaviour (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization's effectiveness."Newstrom and Davis and define Organizational Behaviour as, the study and application of knowledge about how people-as individual and as groups - act within organization.According to Fred Luthans Organizational behaviour can be defined as the understanding, prediction, and management of human behaviour in organizations.From the definitions given above we can conclude that Organizational behaviour a scientific discipline and it concerned with development of concepts as well as research, and the applications of such knowledge in order to increase the effectiveness of organizations. Further, it studies behaviour at many levels of analysis, namely, individual, group, and organizational.Organizational Behaviour studies human behaviour at the following levels: Individual Behaviour: Organizational behaviour is concerned with the behaviour of individuals with an organization. Interpersonal Behaviour: Organizational behaviour is concerned with interpersonal relationship within an organization. For instance, organizational behaviour aids managers to understand the behaviour of two employees when they interact with each other. Behaviour within Groups:Organizational behaviour also studies the behaviour of formal or informal groups in an organization.

Inter-group Behaviour:Managers examine inter-group relationships, when there is a need to coordinate the efforts of two or more groups. Inter-organizational Behaviour:Organizational behaviour examines the inter-organizational relationships in matter relating to mergers, joint venture, etc. Like other inputs into an enterprise, the human beings employed by that enterprise constitute a resource -- in this case, a human resource. Other resources must be managed to ensure both the efficiency and effectiveness of the organization. It takes economists, accountants, and financial analysts to understand and utilize the firm's monetary resources. Similarly, technologists, engineers, and trades people serve to help management utilize the firm's material and production facilities efficiently. It is the role of the Human Resource Manager, and others, skilled in the analysis of human interaction with the work environment, to assist management in the proper utilization of human resources. The study of Organizational behaviour facilitates the process of explaining, understanding, predicting, maintaining, and changing employee behaviour in an organizational setting.

Figure: Organizational behaviour Elements

In summary, to understand behaviour in the organization, we must examine the interaction of individuals with the various factors the individuals encounter in that organizational setting. The behaviour encountered in the organization are, of course, very diverse. The diversity of personalities interacting with varied organizational environments results in considerable variation in associated behaviour. The employees of the firm are human resources. Just as accountants provide the expertise the firm requires to best manage its financial resources, so the Organizational behaviour specialist provides the expertise needed to manage the firm's human resources.

Figure: Individual behaviour in the Organizational Setting

1.3 NATURE AND CHARACTERISTICS OF ORGANIZATIONAL BEHAVIOURThe main characteristics of the field of organizational behaviour are briefly stated follows:1. Interdisciplinary in nature:Organization behaviour is interdisciplinary in nature because it integrate the behavioural science the other social sciences so as to understand people and organization better. The measures discipline which have contribute to Organizational behaviour psychology, sociology, anthropology, and political science.

Psychology has contributed concepts of learning, perception, personality, leadership, and motivation, to the field of organizational behaviour. Some of the ares within OB that have received valuable inputs from sociologists are group dynamics design of work teams, organizational culture, etc. Social psychologists have made significant contributions in the areas of attitude change, group decision-making, etc. Much of our understanding of organizational culture, organizational environments and differences among national cultures is the result of the work of anthropologists.

Political science has contributed information about the allocation of power and conflict to organizational behaviour.It is rightly said that the interdisciplinary nature of organizational behaviour is similar to that of medicine, which applies knowledge from the physical, biological, and social sciences into a workable medical practice.

2. Interaction of Theory, Research and Practice:Theory: Organizational behaviour has grown because, it has effectively combined theory development with research and managerial practice. Theories try to explain how and why people behave in particular manner. Theory development occurs when important variables are identified and linked through tentative propositions. But mere theory development is not enough. It must be supported by research.

Research: Research is the ongoing process of gathering and interpreting relevant evidence that will either support a behavioural theory or modify it. Research involves developing testable statements (hypotheses),which are then tested through data collection Data is collected using case studies, field and laboratory experiments, surveys, etc Both research and theory by themselves would be of little use without managerial practice.

Practice: Practice is the conscious application of conceptual models and research results to improve individual and organizational performance. There is a healthy flow feedback to improve theories and models.A major strength of organizational behaviour is the increasing acceptance of theory and research by practicing managers Managers today are more receptive to new models. They support related research and experiment with new ideas.Thus,it can be concluded that as a result of the close interaction of theory research,and practice; organizational behaviour has progressed substantially. 3. Goals:Most sciences share four goals - to describe, to understand, to predict, and to control some phenomenon. OB also embraces these goals.This is because -* OB tries to describe how people behave under a variety conditions.* OB makes an attempt to understand why people behave in a particular manner.* OB makes an attempt to predict future employee behaviour.* OB tries to control some human activity at work.

4. People:OB focuses primarily on people. Technology, structural relationships, environment and other elements are considered as they relate to people.

5. Group/Individual Behaviour: OB may be individual behaviour or group behaviour. The behaviour of individual as well as that of groups in a organization, on the performance of the organization.

6. Behavioural Directed at different Parties: OB relates to behaviour of the members of the organization towards each other, towards other groups in the organization, towards outsiders, including customer, suppliers, dealers,etc.

7. Employee and Organizational Needs:OB seeks to fulfill both employee needs as well as organizational objectives. It tries to have a balance between organizational productivity and employees satisfaction.

Chapter 22.1 THE HISTORICAL EVOLUTION OF ORGANIZATIONAL BEHAVIOURThe early management thinkers, such as Fredrick Taylor, Max Weber, Henri Fayol and others, recognized the behavioural side of management. However, they did not place much emphasis on the human dimension in organizations. They placed more emphasis on the roles of hierarchical structure, specialization, and the management functions of planing, organizing, directing and controlling.Today, Organizational behaviour is considered as an important aspect in organizational effectiveness. However, OB as a distinct field of study was emerged at 1940s. Prior to this, before the sixteenth century, Greek philosopher Plato wrote about the essence of leadership for job satisfaction. Aristotle addressed the topic of persuasive communication in organization. The writings of 16th century Italian philosopher Niccol Machiavelli laid the foundation for contemporary work on organizational power and politics. In 1776, Adam Smith advocated a new form of organizational structure which is based on the division of labour. One hundred years later, German sociologist Max Weber wrote about rational organizations and initiated discussion of charismatic leadership. Soon after, Frederick Winslow Taylor, also known as father of scientific management, introduced the systematic use of goal setting and rewards to motivate employees. In the 1920s, Australian-born Harvard professor Elton Mayo and his colleagues conducted productivity studies at Western Electric's Hawthorne plant in the United States.Although the above contributions traces its roots back to Max Weber and earlier scientists, organizational behavioural studies is generally considered to have begun as an academic field with the advent of scientific management of F.W. Taylor. In the Taylorism, rationalizing the organization with specific sets of instructions and time-motion studies, individual compensation system can lead lead to the increased productivity and efficiency. After the First World War, the focus of organizational studies shifted to analysis of how human factors and psychology affected organizations, a transformation propelled by the identification of the Hawthorne Effect of Elton Mayo. This Human Relations Movement focused on teams, motivation, and the actualization of the goals of individuals within organizations, the Prominent scholars for it were, Frederick Herzberg, Abraham Maslow, David McClelland, and Victor Vroom, those have contributed in motivational theories.The Second World War further shifted the field, as the invention of large-scale logistics and operations research and the management science. Interest grew in theory and methods to the sciences of management rather that art, including systems theory, the study of organizations with a complexity theory perspective and complexity strategy. The major contributors were Herbert Alexander Simon and James G. March.In the 1960s and 1970s, the field was strongly influenced by social psychology also and the emphasis in academic study was on quantitative research. An explosion of theorizing, much of it at Stanford University and Carnegie Mellon, produced Bounded Rationality, Informal Organization, Contingency Theory, Resource Dependence, Institutional Theory, and Population Ecology theories, among many others.Starting in the 1980s, cultural explanations of organizations and change became an important part of study. Qualitative methods of study became more acceptable, informed by anthropology, psychology and sociology.

2.2 SPECIFIC CONTRIBUTIONS

Frederick Winslow Taylor (1856-1915):

Taylor was the first person who attempted to study human behaviour at work using a systematic approach. Taylor studied human characteristics, social environment, task, physical environment, capacity, speed, durability, cost and their interaction with each other. His overall objective was to reduce and/or remove human variability. Taylor worked to achieve his goal of making work behaviour stable and predictable so that maximum output could be achieved. He relied strongly upon monetary incentive systems, believing that humans are primarily motivated by money. He faced some strong criticism, including being accused of telling managers to treat workers as machines without minds, but his work was very productive and laid many foundation principles for modern management study.

Elton Mayo:

Elton Mayo, an Australian national, headed the Hawthorne Studies at Harvard. In his classic writing in 1931, Human Problems of an Industrial Civilization, he advised managers to deal with emotional needs of employees at work.

Mary Parker Follett:

Mary Parker Follett was a pioneer woman management consultant in the industrial world, which was mainly dominated by males. As a writer, she provided analyses on workers as having complex combinations of attitude, beliefs, and needs. She told managers to motivate employees on their job performance, apull rather than a "push" strategy.

Douglas McGregor:Douglas McGregor proposed two theories/assumptions, which are very nearly the opposite of each other, about human nature based on his experience as a management consultant. His first theory was Theory X, which is pessimistic and negative; and according to McGregor it is how managers traditionally perceive their workers. Then, in order to help managers replace that theory/assumption, he gave Theory Y which takes a more modern and positive approach. He believed that managers could achieve more if managers start perceiving their employees as self-energized, committed, responsible and creative beings. By means of his Theory Y, he in fact challenged the traditional theorists to adopt a developmental approach to their employees. He also wrote a book The Human Side of Enterprise in 1960; this book has become a foundation for the modern view of employees at work.Henri Fayol (consider as the father of Modern Management) Emphasized that the purpose of the organization was to get the work done in specialized, machine like functions. He did not placed. However, it would be wrong to state that Henri totally ignored the human factor in organization. In the list of 14 principles of management, Fayol did mention, certain, principles, which were people-oriented such as stability of tenure,equity, fair remuneration, balance between authorities and responsibility, esprit de corps.

2.3 HUMAN RELATION MOVEMENT :The classical school (Taylors scientific management and Henri Faylos administrative management did not place much emphasis on the human aspects of the workers. As a result, the classical approach failed to achieve the desired level of production efficiency and harmony between the management and workers. The failure of the classical approach led to the human relation movement. The human relations movement began with the Hawthorne Experiments, which were conducted at Western Electrical Works in USA between 1924 and 1932.

Hawthorne Studies: It is generally believed that the Hawthorne studies marks the beginning of the study of OB. The Hawthorne experiments were conducted in four phases as follows:Part I - Illumination experiments(1924-27) Form 1924-27, the National Research Council made a study in collaboration with Western Electric to determine the effect of different levels of illumination on productivity of labour. The lighting conditions for the control group of workers were varied, while it was kept constant for the control group of workers. The researchers found that the productivity of the rest group improved with an improvement in lighting conditions and surprisingly it also improved, when the lighting conditions were worsened. The complicate further, the productivity of the control group also rose, even when there were no changes in the lighting conditions. The researchers concluded that something besides lighting was influencing the workers performance.Part II - Relay Assembly Test Room Experiment (1927-29): In this experiment, Elton Mayo and his associates were involved. In this experiment, two groups of six female telephone relay assembles each were placed in separate rooms and a number of variables were altered- wages were increased; rest periods of varying length were introduced. The workday and work week were shortened. The researchers, who now acted as supervisors, also allowed the groups to choose their own rest periods and to the groups to choose their own rest periods of experiment. The researchers also observed that even when the improvements in physical working conditions were withdrawn, productivity and morale of the groups were maintained. The researchers, thus concluded that the socio-psychological factors such as small informal groups, non-directive supervision, participation in the works matters, etc., were responsible for improvement in productivity.Part III- Mass Interviewing Programmes (1928-31) A large number of workers were interviewed to find out the reasons for increased productivity. This program indicated that productivity could be increased, if people are allowed to talk freely about matters that are of importance to them.

Part IV- Bank wiring Observation Room Experiment (1932): In this experiment of group of 14 male employees in the bank wiring room was placed under observation for 6 months. A workers pay was made dependent on the performance of the group as a whole. The researchers expected that the more efficient workers would put pressure on less efficient workers to complete the work. However, it was found that the group established its own standards of output and social pressure was used to achieved the standards of output and social pressure was used to achieve the standards of output. CONCLUSIONS OF THE HAWTHORE EXPERIMENTS: The Social and psychological factors and not just physical working conditions are responsible for the workers productivity and job satisfaction. The informal and interpersonal relations among workers influence the workers behaviour and performance more than the formal relations in the organization. Employees would perform better when they are given freedom to participate in decision-making affecting their interests. Employees would also work more efficiently, when they believe that the management is concerned of their welfare. When employees treated with respects and dignity, their performance trends to improve than otherwise. Monetary incentives alone cannot increase the performance, but fulfillment of their social and psychological needs is a must to enhance productivity. Effective communication between the superiors and subordinate can improves the relations and overall productivity of the subordinates. Special attention and freedom to express their views on matters concerning to the workers can improve the overall performance of the workers.

2.4 THE BASIC PHILOSOPHY OF HUMAN RELATIONS

There are following basic philosophy of human relations approach is stated as follows 1. Human beings are not interested only in monetary gains, but also need recognition and appreciation.2. Workers are human beings, and they are to be treated as human beings and not likes machines. Managers should try to understand the feeling and emotions of the people, and accordingly manage them.3. An organisation works not only through formal relations, but also through informal relations. Therefore, managers should encourage informal relations in the organization and not just formal relations.4. Workers expected good communication on the part of managers and therefore, managers should communicate effectively without feelings of ego and superiority complex.5. Workers need a high degree of job security and job satisfaction, and therefore, management should make effort to ensure job security and to bring out job satisfaction to the workers.6. In any organization, members would not like conflicts and misunderstanding, and therefore, managers should work to sort out conflicts and misunderstanding among the members of the organization.7. Workers would prefer freedom from strict supervision and therefore, managers should avoid strict supervision and control over the workers.8. Employees would like to participate in decision-making especially, in those matters affecting their interests, and therefore management must encourage workers participation in management, so as to enhance productivity and job satisfaction.

2.5 CONTRIBUTIONS OF DIFFERENT DISCIPLINES TO ORGANIZATIONAL BEHAVIOUR (INTERDISCIPLINARY FIELD)OB is considered as an academic discipline. However, it is widely considered as an interdisciplinary field of study because of covering varieties of academic discipline within it. The filed of studies can be shown from the figure below.PsychologyPsychology is a behavioural discipline that seeks to measures explain and some time modify the behaviour of human and other animal. The psychologists attempt to study and understand individual behaviour. The contribution to study of OB are learning theorists, personality, counseling, psychologists as well as industrial organizational psychologists.Early organizational psychologists concerned themselves with the problems of fatigue, and other factors relevant refers to the science that tries to measure, explain, predict and sometimes change the behaviour of humans. OB focuses on human psychology through learning, perception, personality emotions, training, leadership, motivation, job satisfaction etc.SociologyIt is the study of people in the organization in relation with others which includes, group, teams, communication, power, conflict etc. Sociology as a behavioural discipline studies people in relation to their fellow human beings. While psychologists focus their attention on individual behaviour, the sociologists study the social system in which individuals perform their roles. Sociologists have contributed to OB through their study of group behaviour in organizations, particularly formal and complex organizations.Some of the areas within OB that have received valuables input from sociologists are groups dynamics, design of work teams, organizational, culture, formal organization theory and structure, organizational technology, communications, power and conflict.

Social psychologyIt is the combine of both Psychology and Sociology which focuses on influence of people on one another. The fields of study are: behavioural change, attitude change, communication, group process and group decision making. The modern social psychologists, understanding and changing attitudes, communication. Patterns, building trust, the ways in which group activities can satisfy individuals needs, and group decision-making process. AnthropologyIt is the study about societies to identify about human beings and their activities such as cultures and environments. Anthropologists work on cultures and environments has helped to understand differences in fundamental values, attitudes, and behaviour between people in different countries and within different organizations. The contributions of anthropologists have helped us to understand the intricacies of organizational culture organizational environments, and difference between national cultures. Political SciencePolitical science primarily focuses on studying the behaviour of individuals and groups within the political environment within the organization which includes conflict, Intra-organizational politics and power. The political scientists have done extensive research on power and politics in organizations. A popular view of organization politics how one can pragmatically get ahead in an organization. Alvin Toffler the famous author of Future stock, The Third Waves , and Powershift Observes that Companies are always engaged in internal politics struggles, power struggles, infighting, and so on. Thats normal life.

LearningMotivationPersonalityEmotionsPerceptionTrainingLeadership effectivenessJob satisfactionIndividual decision makingPerformance appraisalAttitude measurementEmployee selectionWork designWork stressPsychologybehavioural ScienceContributionUnit of AnalysisOutputSociologySocial PsychologyAnthropology Political scienceGroup dynamicsWork teamsCommunicationPowerConflictInter group behaviourFormal organization theoryOrganizational technologyOrganizational changeOrganizational culturebehavioural changeAttitude changeCommunication'Group processGroup decision makingComparative valuesComparative attitudesCross-cultural analysisOrganizational cultureOrganizational EnvironmentConflictIntraorganizational politicsPowerIndividual GroupOrganizational SystemStudy of Organizational behaviour

Source: Stephen P. RobbinsEmerging Trends in Organizational BehaviorDifferent writers explained differently about the emerging trends to OB. The following points can be traced out as the recent trends to OB. Globalization of products and services The revolution in middle level management: Maximum cut in the middle level managers, restructuring and redefining the roles Decentralization of business, government, political and social institutions High level of diversity among people, groups, institutions and geographic locations Computerization in organizations Use of technologies in communication Priority and reservation opportunities for minorities and women Inclusion of different race, caste, religion, language, region etc. Unionization Flat structure and wide span of control Team and Group Approach with dynamic leadership Virtual team and virtual organizations Innovative plan for special career needs: Flexible working hours, reduced hours, quality of work life Contingent workforce Ethical behavioral issues

2.6 EMERING CHALLENGES IN ORGANIZATIONAL BEHAVIOURThe organizations are facing growing challenges in the light of liberalization and globalization of Indian economy. The 1991 industrial policy marked a major shift from protective industry to competition industry and from local market to global market. Such a shift calls for challenges in OB. Proactive strategies require OB practitioners to anticipate events and take appropriate steps before the events occur. Some of the important challenges in OB are:-1. Globalization The world economic scene is changing at a rapid pace. The world is opening up its frontiers and getting closer. There has been rapid growth in world trade and investment. India and other inward looking economies have opened the doors to liberalization. The countries of the world are coming closer to form the so- called Global Village. The globalization of business has its impact on HRM practices. The OB practitioners of the firms competing in global markets have to cope up with the problems of varied laws, languages, culture, business practitioners, etc. Of several countries in which the organizational operates. Organizational practices such as human resource planning staffing , compensation,etc. Would therefore be affected by globalization of business.As far as India firms are concerned, they have to face increasing competition from global corporations both in India and in overseas markets. Business firms from India and other developing countries may find it difficult to complete with large global corporations from developed nations. Therefore, Indian firms have to face the challenge of developing and enhancing the quality of human resources so as to face the challenges from global corporations.2. Changing Demographics of WorkforceOver the years, there have been changes in the demographics of workforce. The changing demographics of workforce includes:* Increasing number of women is joining the workforce both at managerial level and at non-managerial level. Managing the women workforce under the Constitution and labor laws. Also, the women workforce is under constant stress and strain of managing the balance of official working environment to cope up with the problems of office works and domestic works. Therefore, they expect from the organizational a better working environment to cope up with the problems of office work and that of the household work.* Growing number of dual career couples, - DISK couples and the DNK couples, who are more career oriented. They would prefer those organizations that offer scope for career development challenge for OB practitioners.*Growing number of young employees pose a challenge for OB practitioners. In recent years, in a good number of firms, the average age of employees, especially that of the managerial personnel is declining. For instance, in some of the major software companies, the average age of staff is around 30 years. 3. Corporate Reorganizations:In the recent past, there is the trend of corporate reorganization due to acquisitions and mergers. A number of companies worldwide are coming together by way of mergers or joint ventures in order to consolidate their strengths and to the growing trends advantages of opportunities of global trade. Due to the growing trends of takeovers and mergers, employees are under constant are under constant tension/pressure of future events relating to their jobs such as: Transfers to new locations, which may affect their personal and family life. Job changes, including new roles and assignments. Changes in organizational structure, which may affect superior-subordinate relations, and other inter-personal relations. Changes in corporate culture and loss of identity in the company. Changes in working conditions, remuneration and benefits, etc. Fear of loss of jobs.It is true that the pace of takeovers and mergers would continue in the near future. Therefore, OB practitioners would have to face challenge of managing the workforce of the merged entities, especially, in terms of retraining and development of new skills which may be required to handle the new jobs, new roles and assignments, and in developing morale of the employees in the reorganized entity.

4. Technological Development:Modern world is witnessing continuous break through in science and technology,especially in the field of computers and technology, especially in the field of computers and electronics. The technological development can pose a great problem to the organization, especially human of organizations are downsizing their manpower both managerial and non-managerial due to technological upgradation. However, the real challenge before the OB practitioners is to develop new skills in the manpower to adapt to the latest technological developments.5. Challenge of Improving Quality and Productivity:Due to globalization, global companies are adopting expansion strategy. The global companies, in order to face the competition, are making efforts to reduce costs and to improve their quality of products. Quality is one of the important aspects of any business activity in todays competitive world. Organization face major challenges to meet the important dimensions of quality such as:* Product performance* Product reliability* Product conformance* Product durabilityOB practitioners may consider Total Quality Management (TQM) as a method to improves product quality. TQM is a management philosophy that places emphasis on continuous improvement in quality in the interest of the organization and that of its customers. Employee involvement in the process of TQM ensures its effective implementation.Productivity is the ratio of output to input. The challenge for OB practitioner is to achieve higher productivity. Besides other factors, productivity depends upon personnel factors as well as organizational factors.* Personnel factors include proper training to employees proper working conditions, proper placement of employees etc.* Organizational factors include proper superior subordinate relationships, proper co-ordinate among employees, well-defines objectives etc.

6. Challenge of Ethical Dilemma:Ethics is a science of morality that guides and helps to achieve objectives through legal and moral means. Business ethics regulates the activities of organizational towards society and other on social, legal and moral values. What is ethical and unethical differs from one individual to other or society. Also, what is moral in one society may be immoral in other. For example, taking or giving bribe is considered as unethical in our society but may be a routine affair or just ignored by society in other countries. The members of the organizations are increasingly facing the ethical dilemma as to what is ethical or unethical code of conduct. They may find it difficult to answer questions, such as:* Should the power-politics be allowed for career advancement.* Should the employee be highly ranked during his performance appraisal to save his job.* Should the employee follow the orders of his superior, which he may personally think is unethical.Today, there is a thin line between what constitutes a good or a bad organizational behaviour. Several organizational follow ethical values and principles in conducting business and dealing with various social groups. The measures adopted by organizations to improve ethical standards are:* To adopt code of conduct for dealing with employees, consumers. Shareholders. And other social groups.* To make social audit compulsory to identify the ethical and unethical conduct of business.* To introduce open and free communication system and bring total transparency in business working.* To penalize those employees who willfully violates ethics.

7. Challenge of Employee Retention:Nowadays, there is growing attrition in organizations, such as consultancy, media etc. Certain amount of amount of employees turnover is good for the organization because it gives chances to talented outsiders to join the organization. Therefore, the organizations need to introduced certain measures to overcome the problem of employee retention such as ; Matching jobs with individuals skills and aptitude. Employee Relationship Management (ERM) Motivational training programmes Stress management techniques Retention bonus Long tenure package Employee participation and empowerment, etcManaging the managers :Management of managers is one of the biggest challenges for OB practitioners. Manager of various departments are given the freedom to manage their subordinates. However, in India, many of the senior management personnel misuse the freedom and try to get rid off talented and hardworking juniors,whom they consider threat to own positions.

3.1 CONCLUSION Organizational behaviour is the study of what people do in an organization and how that behaviour affects the performance of the organizations. It is an academic discipline concerned with describing, understanding, predicting, and controlling human behaviour in an organizational environment. According to Fred Luthans Organizational behaviour can be defined as the understanding, prediction, and management of human behaviour in organizations.The early management thinkers, such as Fredrick Taylor, Max Weber, Henri Fayol and others, recognized the behavioural side of management. However, they did not place much emphasis on the human dimension in organizations. They placed more emphasis on the roles of hierarchical structure, specialization, and the management functions of planing, organizing, directing and controlling.

3.2 BIBLIOGRAPHY

1. Organizational Behaviour( Published by Manan Prakashan Mumbai) Michael vaz and Meeta Seta.2. Organizational Behaviour (published by Himalaya publishing house) Mrs Meena Pandey.

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