The Study Of Organizational Behavior Business Essay

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The study of Organizational Behavior is very interesting and challenging too. It is related to individuals, group of people working together in teams. The study becomes more challenging when situational factors interact. The study of organizational behavior relates to the expected behavior of an individual in the organization. It is the predictability of a manager about the expected behavior of an individual. There are no absolutes in human behavior. It is the human factor that is contributory to the productivity hence the study of human behavior is important.

Great importance therefore must be attached to the study. Managers under whom an individual is working should be able to explain, predict, evaluate and modify human behavior that will largely depend upon knowledge, skill and experience of the manager in handling large group of people in diverse situations. Preemptive actions need to be taken for human behavior forecasting. The value system, emotional intelligence, organizational culture, job design and the work environment are important causal agents in determining human behavior.

Cause and effect relationship plays an important role in how an individual is likely to behave in a particular situation and its impact on productivity. An appropriate organizational culture can modify individual behavior. Recent trends exist in laying greater stress on organizational development and imbibing a favorable organizational culture in each individual. It also involves fostering a team spirit and motivation so that the organizational objectives are achieved. There is a need for commitment on the part of the management that should be continuous and incremental in nature.


There have been many different strands in the cultural evolution of China over the centuries. Historians like Fairbank and Goldman (1998) ably bring out both the cultural homogeneity and diversity of China over its long chain of evolution. We have already signaled the presence of considerable regional and generational differences.

The core Han culture is probably the most important factor in understanding how China developed. It is almost impossible to discuss any aspect of Chinese life without referring to it. It dominates both the map and the mind-set of modern China. Despite the strong influence of institutional features, informed by communist ideology and a totalitarian state, as in other countries cultural variables have also help to mould the institutional ones.

There are four types of culture china using. That is guanxi, Mianzi, Keqi, and Confucianism. In literal terms, this central concept in Chinese culture means 'relationships' or 'connections'. Guanxi is a network of elaborate relationships promoting trust and cooperation and for centuries was the main way of accomplishing everyday tasks.

An important issue that should be considered throughout business interactions with the Chinese is the concept of 'mianzi' or 'face'. Face is a mark of personal pride and forms the basis of an individual's reputation and social status. In Chinese business culture 'saving face', 'losing face' and 'giving face' are vital for successful business.

The notion of keqi is based on the amalgamation of two Chinese words, 'ke' meaning 'guest' and 'qi' signifying 'behavior'. Together, this cultural concept advocates thoughtful, courteous and refined behavior. In business terms, it is important to demonstrate humility and modesty as exaggerated claims of ability are viewed with suspicion and are likely to be looked into.

Emphasis is placed on the concept of relationships and the elements of responsibility and obligation. This Chinese philosophy remains a vital cultural factor in the development of Chinese society and is still effective in Chinese business culture today in the preservation of surface harmony and collective good.

In the side of china business structure china whilst the rational Maoist approaches are long gone, and understanding of past approaches can be helpful when dealing with the new China which has emerged.  Since 1978, China has been moving towards a market oriented economy. China de-collectivized agriculture, yielded tremendous gains in production.

Penang culture of the Peranakan community possesses a distinct identity in terms of food, costume, rites, crafts and culture. Most Peranakan Chinese are not Muslims but practice ancestral worshiping and Chinese religion.

Malay is the national language and also a major part of Penang culture. But English and the Chinese dialect of Hokkien is widely spoken. The English spoken here is a form of Manglish (Malaysian colloquial English). Tamil is also spoken amongst the Indian community.

Buddhism is the main religion in Penang. However, Islam is the official religion of the state. There is also a small community of Jews in Penang, mainly along Jalan Zainal Abidin (formerly Jalan Yahudi or Jewish Street). They eat, on average 6 times a day. And this is no exaggeration. And we can find food almost everywhere and at any time of the day. This is The Penang Culture. We have to experience it to appreciate how lucky they Penangites are.

Many restaurants and coffee shops are open 24-hours. The island is a gourmet paradise. Food lovers from all over the world come to the island to sample its unique cuisine. The culture of Penang has mostly developed from that of the Straits born Baba-Nyonya or Chinese who descended from the early Chinese immigrants of Penang. Most of the Penang population speak a kind of Chinese-Malay Creole and have partly adopted Malay customs. Although Buddhism is the foremost religion in Penang, Islam is the state's official religion.

The area within a radius of about a mile from Fort Cornwallis forms the old quarters of George Town, today the George Town UNESCO World Heritage Site. This area holds some of the oldest and historically significant structures on Penang Island. You can find here whitewashed colonial buildings alongside gleaming temples, mosques, churches, labyrinthine alleys and all the sites that most tourists come to visit.


Fred E. Fiedler's contingency theory of leadership effectiveness was based on studies of a wide range of group effectiveness, and concentrated on the relationship between leadership and organizational performance. This is one of the earliest situation-contingent leadership theories given by Fiedler. According to him, if an organization attempts to achieve group effectiveness through leadership, then there is a need to assess the leader according to an underlying trait, assess the situation faced by the leader, and construct a proper match between the two.

In order to assess the attitudes of the leader, Fiedler developed the 'least preferred co-worker' (LPC) scale in which the leaders are asked about the person with whom they least like to work. The scale is a questionnaire consisting of 16 items used to reflect a leader's underlying disposition toward others. The items in the LPC scale are pleasant / unpleasant, friendly / unfriendly, rejecting / accepting, unenthusiastic / enthusiastic, tense / relaxed, cold / warm, helpful / frustrating, cooperative / uncooperative, supportive / hostile, quarrelsome / harmonious, efficient / inefficient, gloomy / cheerful, distant / close, boring / interesting, self-assured / hesitant, open / guarded. Each item in the scale is given a single ranking of between one and eight points, with eight points indicating the most favourable rating.

Fiedler states that leaders with high LPC scores are relationship-oriented and the ones with low scores are task-oriented. The high LPC score leaders derived most satisfaction from interpersonal relationships and therefore evaluate their least preferred co-workers in fairly favorable terms. These leaders think about the task accomplishment only after the relationship need is well satisfied. On the other hand, the low LPC score leaders derived satisfaction from performance of the task and attainment of objectives and only after tasks have been accomplished, these leaders work on establishing good social and interpersonal relationships.

According to Fiedler, a leader's behavior is dependent upon the favorability of the leadership situation. Three factors work together to determine how favorable a situation is to a leader.

These are Leader-member relations (The degree to which the leaders is trusted and liked by the group members, and the willingness of the group members to follow the leader's guidance), Task structure (The degree to which the group's task has been described as structured or unstructured, has been clearly defined and the extent to which it can be carried out by detailed instructions), and Position power (The power of the leader by virtue of the organizational position and the degree to which the leader can exercise authority on group members in order to comply with and accept his direction and leadership)

Leader-member relationships had twice the impact on the favorableness of the situation than task structure and that task structure had twice the impact as the position power.

In the least favorable situation, the task-oriented leader by using her primary form of leadership was more effective because she provided the structure to initiate the task. In the moderately favorable situation, the relationship oriented leader was more effective by using his primary form of leadership and building good leaders-member relations. In the most favorable situation, the task-oriented leader was more effective because she would use her secondary style of leadership and maintain good leader-member relationships.

Fiedler's theory is his contingent that leadership is a personality trait and very difficult, if not impossible for leaders to learn other styles and to flexibly use them. He advised that the situation should be selected or "engineered" for the leader than try to develop the leader. The leader's effectiveness is determined by the interaction of the leader's style of behaviour and the favorableness of the situational characteristics. The most favorable situation is when leader-member relations are good, the task is highly structured, and the leader has a strong position power.

Fiedler also suggested that leaders may act differently in different situations. Relationship-oriented leaders generally display task-oriented behavior under highly favorable situations and display relationship-oriented behaviors under unfavorable intermediate favorable situations. Similarly, task-oriented leaders frequently display task-oriented in unfavorable or intermediate favorable situations but display relationship-oriented behaviors in favorable situations.


One of the main theories relating to motivation is Maslow's Hierarchy of Needs. People have needs. A need is a lack of something- something we want. This produces the drive and desire which motivates us to satisfy that need. Satisfying this need, or getting the thing we want or lack is the goal. It was in 1943 a Psychologist Mr. Abraham Harold Maslow suggested his Theory of Human Motivation. Abraham Maslow a US psychologist developed the well known 'Hierarchy of needs' motivation theory. Under this theory Maslow suggests that everybody has a series of needs and these needs can be organized into a hierarchy of priority. Maslow also stated that if you want to motivate an individual you will need to know which of their needs have been satisfied.

Figure 1.1

Physiological needs are the basic needs for sustaining human life. These needs include food, shelter, clothing, rest, air, water, sleep and sexual satisfaction. These basic human needs (also called biological needs) lie at the lowest level in the hierarchy of needs as they have priority over all other needs. These needs cannot be postponed for long. Unless and until these basic physiological needs are satisfied to the required extent, other needs do not motivate an employee.

 These are the needs connected with the psychological fear of loss of job, property, natural calamities or hazards, etc. An employee wants protection from such types of fear. He prefers adequate safety or security in this regard i.e. protection from physical danger, security of job, pension for old age, insurance cover for life, etc. The safety needs come after meeting the physiological needs. Such physiological needs lose their motivational potential when they are satisfied. As a result, safety needs replace them. They begin to manifest themselves and dominate human behavior. Safety needs act as motivational forces only if they are unsatisfied.

 An employee is a human being is rightly treated as a social animal. He desires to stay in group. He feels that he should belong to one or the other group and the member of the group should accept him with love and affection. Every person desires to be affiliated to such groups. This is treated as basic social need of an individual. And the esteem needs include the need to be respected by others, need to be appreciated by others, need to have power and finally prestigious position. Once the previous needs are satisfied, a person feels to be held in esteem both by him and also by others. Thus, esteem needs are two fold in nature. Self esteem needs include those for self confidence, self-respect, competence, etc.

At last is a Self-actualization need this is the highest among the needs in the hierarchy of needs advocated by Maslow. Self actualization is the desire to become what one is capable of becoming. It is a 'growth' need. A worker must work efficiently if he is to be ultimately happy.

While maslow hierarchy makes sense from an intuitive standpoint, there is little evidence to support its hierarchical aspect. In fact there is evidence that contradicts the order of need specified by the model. For example, some cultures appear to place social needs before any others. Maslow hierarchy also has difficulty explaining cases such as the "starving artist" in which a person neglects lower need in pursuit of higher ones. Finally there is a little evidence to suggest that people are motivated to satisfy only one need level at a time, except in situations where there is a conflict between needs.


Group behaviors are important concepts as they determine the cohesiveness and coherence of the organizational culture and organizational communication. Hence, molding group behavior is important for organizations. However, this cannot be construed to mean that all employees must think and act alike. On the contrary, innovation cannot happen when group behavior is the same across all levels.

The point here is that while organizations must strive for cohesiveness and coherence, they must not sacrifice the principles of individual creativity and brilliance that are at the heart of organizational change and innovation. In these turbulent times, there is a need for individuals to take a stand and be firm on the direction that the organization seeks to take.

Of course, group behavior needs to be inculcated in organizations for the simple reason that employees must conform to the rules and regulations that govern organizations. Hence, there is a need for uniformity and consistency in the way organizational group behavior has to be molded. Towards this end, groupthink and group behavior must be encouraged by the HRD function as a means to ensure cohesiveness in the organization.

In the technology sector, we often find employees straight out of campuses behaving as though they are still in college. While some of this freethinking and freewheeling spirit is good for innovation, the human resource management function must guard against the tendency to be flippant with the organizational rules and procedures. Further, competitiveness can be encouraged but it should not come at the expense of collaboration and cooperation that are at the heart of organizational success.

Group behavior can be detrimental to the organizational health as well. This happens when the decisions of the top management are not challenged or are followed blindly leading to the leadership thinking that whatever they do is right. We do not mean to say that there must be fractious fights in the organization. On the other hand, there must be a space for free expression of ideas and thoughts and true democratic decision making ought to take place.

Finally, group think can be a powerful motivator as well as inhibitor. The motivating aspect happens when because of group think; employees feel bonding with their peers and colleagues and hence ensure that they give their best to the job. The inhibitor works when employees feel that their individual creativity and brilliance are being sacrificed at the altar of conformity. Hence, the leadership as well as the human resource management function has their task cut out to ensure that group behavior does more good than harm. There is a need for a nuanced and balanced approach towards group behavior to leverage the individual creativity and at the same time not sacrifice organizational cohesiveness and coherence.

Teams are groups of people with complementary skills who are committed to a common purpose and hold themselves mutually accountable for its achievement. Ideally, they develop a distinct identity and work together in a co-ordinate and mutually supportive way to fulfill their goal or purpose. Task effectiveness is the extent to which the team is successful in achieving its task-related objectives. Shared goals are most likely to be achieved through working together and pooling experience and expertise.

Simply bringing people together does not necessarily ensure they will function effectively as a team or make appropriate decisions. Teams are composed of people who have a variety of emotional and social needs which the team can either frustrate or help to meet. Teamwork indifference, failing to take action to promote good teamwork is a strategy likely to result in mediocre performance.

Effective teams embrace and are constituted by a diversity of cultures, talents and personalities. Diversity can promote creativity and innovation, and raise awareness of and respect for differences, which will support effective teamwork. By contrast, teams that lack diversity can find it difficult to solve particular problems; it is much harder to find innovative solutions when all of the team members think about problems in the same way draw on similar experiences for support and come to the same conclusions. The merits of diversity noted, difference also raises the potential for conflict within teams, which can be harmful if not managed properly.

Teamwork is supported by effective leadership. All teams benefit from one or several sources of inspiration and direction; leaders can support collaboration by coordinating the efforts of team members and encouraging team members to speak their minds during team meetings. They can ensure the team projects stay on track by checking in with different contributors and measuring daily or weekly progress against overall timetables and objectives.

Effective teamwork is developed through shared experiences and practice. The use or avoidance of team-building activities can be an important factor in determining the development of effective teams; in the age of advanced technology and fast-paced business environments, some team members would never see one another face to face if they did not make a point to do so. Team-building exercises can be targeted to improve particular aspects of team performance such as communication, problem-solving or creativity. 


Organization behavior is a social science that advances knowledge about the behavior of people at work. It studies the relationship between operational effectiveness and employee needs. All aspects of organization performance relate to the former; work attitudes such as job satisfaction, organizational commitment and job involvement relate to the latter.

Management differs from Organization behavior in that it deals with achieving organizational goals through people. It centers on the technical, conceptual and human components of organizational functioning. The manager's job in the twenty-first century will focus on his coaching, integration and conflict-resolution skills. Old job requirements such as giving orders, determining promotions and making autocratic decisions will fade in importance. The competitive pressures on firms continue to mount, and their skilful managements seek to strengthen their firms' operational effectiveness and competitive advantage.

The effectiveness of management's deployment of their firms' technological resources and their strategic initiatives always depends on the quality and motivation of their workforces. The basic theme through all the modules in this revised text is the creation and strengthening of organizational competitive advantage by enhancing the manager's grasp of human forces that are constantly in play in organizations.