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Organizational Behaviour PDF 2 MBUpdated 23 Oct 2026
Official handout MGT502 Official Handouts PDF 2 MB
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MGT502 Organizational Behaviour
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23 Oct 2026
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MGT502

Table of content

Lesson No.

Topic

Page No.

Organizationthe Important Component………………………. Understanding the Basics of Human Behavior……………….... Individual DifferencesAbilities and Performance……………. Understanding the Values…………………………………….... Attitudes at Work……………………………………………….

Emotions and Moods…………………………………………....

Perception, Attitude and Personality……………………………. Perception and Decision Making ………………………………. Motivation-the Basic Concept…………………………………... Motivational Theories…………………………………………... Reward Systems………………………………………………… Review of part I………………………………………………….

Understanding Teams……………………………………………

Leadership Theories…………………………………………….. Leadership Application………………………………………….

Review of Part II………………………………………………... Review of Part II………………………………………………... Foundations of Organizational Structure……………………….. Organizational Design…………………………………………...

Human Resource Policies and Practices………………………... Human Resource Policies and Practices………………………... Human Resource Policies and Practices………………………...

Change Management……………………………………………. Organizational Development……………………………………. Stress and Managing Stress……………………………………... Review of part III……………………………………………….. Future Directions in Organization………………………………. Future Directions in Organization………………………………. International Dimensions of Organizational Behavior………….. Organizational Behavior in a Glance……………………………

Lesson 1

This subject/course is designed to teach the basic language of organizational behavior to diverse audience/students, including those who are studying this as a supporting subject for their bachelor degree program. This course is designed to provide you the foundations of organizational behavior whether you intend to work in any field of interest.

Organizational behavior offers both challenges and opportunities for managers. It recognizes differences and helps managers to see the value of workforce diversity and practices that may need to be changed when managing in different countries. It can help improve quality and employee productivity by showing managers how to empower their people as well as how to design and implement change programs. It offers specific insights to improve a manager’s people skills. In times of rapid and ongoing change, faced by most managers today, OB can help managers cope in a world of “temporariness” and learn ways to stimulate innovation. Finally, OB can offer managers guidance in creating an ethically healthy work climate.

Managers need to develop their interpersonal or people skills if they are going to be effective in their jobs. Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within an organization, and then applies that knowledge to make organizations work more effectively. Specifically, OB focuses on how to improve productivity, reduce absenteeism and turnover, and increase employee citizenship and job satisfaction.

OB studies three determinants of behavior in organizations: individuals, groups, and structure. OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively. OB is concerned with the study of what people do in an organization and how that behavior affects the performance of the organization. There is increasing

design, and work stress. Organizational behavior is a developing field of study, presenting new challenges to a manager’s understanding of work behavior and the ability to manage it effectively. This course addresses the following points:

Organizational behavior studies the factors that impact individual and group behavior in organizations and how organizations manage their environments. Organizational behavior provides a set of tools—theories and concepts—to understand, analyze, describe, and manage attitudes and behavior in organizations. The study of organizational can improve and change individual, group, and organizational behavior to attain individual, group, and organizational goals. Organizational behavior can be analyzed at three levels: the individual, the group, and the organization as a whole. A full understanding must include an examination of behavioral factors at each level. A manager’s job is to use the tools of organizational behavior to increase effectiveness, an organization’s ability to achieve its goal. Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness.

Managers of organizational behavior face five challenges: using information technology to enhance

MGT - 502

creativity and organizational learning, using human resources to gain a competitive advantage, developing an ethical organization, managing a diverse workforce, and managing organizational behavior internationally.

What Is Organizational Behavior?

Organizational Behavior is a field of study that investigates the impact that individuals, groups and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

An organization is a collection of people who work together to achieve a wide variety of goals, both goals of the various individuals in the organization and goals of the organization as a whole. Organizations exist to provide goods and services that people want. These goods and services are the products of the behaviors of workers.

Organizational behavior is the study of the many factors that have an impact on how individuals and groups respond to and act in organizations and how organizations manage their environments.

Although many people assume that understanding human behavior in organizations is intuitive, many commonly held beliefs about behavior in organizations, such as the idea that a “happy worker is a productive worker,” are either entirely false or true only in specific situations. The study of organizational behavior provides a set of tools—concepts and theories—that help people understand, analyze, and describe what goes on in organizations and why. How do the characteristics of individuals, groups, work situations, and the organization itself affect how members feel about their organization?

The ability to use the tools of organizational behavior to understand behavior in organizations is one reason for studying this subject. A second reason is to learn how to apply these concepts, theories, and techniques to improve behavior in organizations so that individuals, groups, and organizations can achieve their goals. Managers are challenged to find new ways to motivate and coordinate employees to ensure that their goals are aligned with organizational goals.

Forces Reshaping the Process of Management

In the last 10 years, the challenges facing managers in effectively utilizing human resources and managing organizational behavior have increased. These challenges stem from changing forces in the technological, global, and social or cultural environments.

Organizations can obtain a competitive advantage, a way of outperforming other organizations providing similar goods and services. They can pursue any or all of the following goals: increase efficiency, increase quality; increase innovation and creativity; and increase responsiveness to customers.

Organizational efficiency is increased by reducing the amount of resources, such as people or raw materials, needed to produce a quantity of goods or services. Organizations try to find better ways to utilize and increase the skills and abilities of their workforce. Cross training workers to perform different tasks and finding new ways of organizing workers to use their skills more efficiently improve efficiency. The global competitive challenge facing organizations is to invest in the skills of the workers because better-trained workers make better use of technology. Increased competition has also put pressure on companies to increase the quality of the goods and services they provide. One approach to increasing quality is called Total Quality Management (TQM), a technique borrowed from the Japanese. TQM involves a whole new philosophy of managing behavior in organizations and includes elements like giving workers the responsibility for finding ways to do their jobs more efficiently and ways to improve quality.

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