MBA Organizational Behaviour: Organizational behaviour in an MBA setting is mostly confined to Human resource specialization students, but nevertheless, it is thought in the 1st year of the program as a mandatory subject for all specialization. And this is because an organizational structure and behaviour affect all streams and functionalities irrespective of the departments and business levels. Hence, it is of vital importance that an MBA student learns the theories of organizational behaviour to make an all-round leader in years to come.
Before students study this subject, it is of vital importance for them to understand that the theories of organizational design, behaviour and structure do not stand in isolation. Innovation in organization and management has been in effect from many centuries and theories have evolved over time according to the needs and demands of different stakeholders involved.
Let us discuss a few basic terms involved in organizational behaviour that you will come across often in your MBA:
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Hierarchy
A hierarchy is an arrangement of items in which the items are represented as being “above”, “below”, or “at the same level as” one another. Hierarchy is an important concept in a wide variety of fields, such as philosophy, mathematics, computer science, organizational theory, systems theory, and the social sciences
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Motivation
Motivation is essentially the underlying drive of individuals to accomplish tasks and goals. There are many factors that can influence employee motivation including organizational structure, the integrity of company operations, and company culture.
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Standardization
Standardization or standardisation is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments.
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Ethics
Organization ethics includes various guidelines and principles which decide the way individuals should behave at the workplace. It also refers to the code of conduct of the individuals working in a particular organization. Every organization runs to earn profits but how it makes money is more important.
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Globalization
Globalization is the process that improves the interaction through the integration of society, culture, politics and business across the world.
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Corporate governance
Corporate governance essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.
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Labour
Any organization of any kind, in which employees participate, and which exists for the purpose, in whole or in part, dealing with employers concerning grievances, labour disputes, wages, rates of pay, hours, or other terms or conditions of employment
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The span of control
Simply put, a span of control refers to the number of subordinates under the manager’s direct control. As an example, a manager with five direct reports has a span of control of five
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Centralization
Centralization refers to the process in which activities involving planning and decision-making within an organization. Depending on a company’s goals and the industry are concentrated on a specific leader.
MBA Organizational Behaviour Notes – Let us answer some fundamental questions related to organizational behaviour:
- What is organizational behaviour?
- Why is organizational behaviour important to MBA students?
- What are the important topics for organizational behaviour from the exam point of view?
- What is the scope of organizational behaviour in the job market?
- What are the important textbooks and articles for reference?
MBA Organizational Behaviour Notes | What is organizational behaviour?
Organizational behaviour or organizational behaviour is the: “study of human behaviour in organizational settings, the interface between human behaviour and the organization, and the organization itself”.
It involves the study of group and individual level behaviour, activity and performance in an organization. The impact of human behaviour in work environment and culture and how it affects the day to day business operations and development including job structure, performance, communication and leadership is the pivotal point of study for academicians world over.
MBA Organizational Behaviour Notes | Why is organizational behaviour important to MBA students?
There are various intended outcomes expected while designing a course structure for an MBA student. Whether the intended outcome is successful or not depends on the faculty, students and various other variable factors. But academicians and experts come up with a set of intended outcomes on the basis of which a course will be designed.
Upon finishing the course in organizational behaviour, MBA students should:
- Understand how to explore organizational structure and culture- The basis of organizational success, from Facebook to Google or from Volkswagen to General Electric, is its human resource and their competency. The big question will always be about the methodologies that are used by organizations to bring out that competency from their workforce. Large Multi-National Companies (MNCs), whose workforce consists of people from different cultural and ethnic backgrounds, need to have a rigid and standardized organizational structure so as to avoid a total collapse of the structure due to difference in the idiosyncrasies of employees from different background.
- Be able to examine and apply different approaches to management and leadership theories of organizations- An internal analysis is important to understand the rhythm and dynamics of your workforce. This can be done through employee engagement programs, leadership programs and other enhancing programs and events that help the management and employee synchronize with each other. A lack of connecting between the two leads to organizational, structural and hierarchical problems.
- Be able to examine and apply the relationship of motivational theories- Whether private or state-owned, governmental or non-governmental organization, motivation plays a pivotal role in helping drive the employees towards achieving their goals, objectives, organizational goals and to a certain extent the responsibilities of a law-abiding citizen towards the society. There are many theories of motivation, and they mostly give a relation or influence the outcomes of employee job satisfaction.
- Be able to demonstrate and understand working with other people, teamwork, groups and group dynamics within the organization- Workgroup within companies — also called task forces — are teams of employees brought together to accomplish a specific task. The task often involves analyzing a problem, formulating a solution and making a recommendation to the company’s management, including the owner of the small business.
What are the important topics for organizational behaviour from the exam point of view?
The following are the most thought topics that are examination paper setters favourite topics for organizational structure:
- The Human Side of the Enterprise- The student will have the knowledge and be able to calculate, implement and differentiate between the people and the enterprise they work for and the relationship between them.
- Organisational Structure- Knowledge about types of organizations and associated structures: Functional, product-based, geographical based, multi-functional and multi-divisional structures, centralized and decentralized and matrix-based.
- Organisational Culture- Classification of organisational culture – power culture, role culture, cultural norms, task culture, person culture. Cultural norms and symbols, values, beliefs and organisational development.
Authority and power: Organisational charts and span of control.
The Human Resource function: Stakeholder perspective, the role of personnel management, policies, strategies and operating plans, strategic goals for personnel - Personalities: Theories and Practice- Characteristics that define the way a person thinks, feels and behaves.
- Perception- What is perception? Perceptual selection, perception and work attitude and behaviour. Attitudes and satisfaction.
- Working with others, teams, groups and group dynamics- The nature of the groups, formal and informal groups, and the purpose of teams.
- Motivation and Work Engagement- Motivation theories: Maslow’s Hierarchy of Needs, Hertzberq’s Motivation-Hygiene theory, Vroom and Expectancy theories, Maccoby, McRae and Costa – personality dimensions.
Motivation and performance: Rewards and incentives – monetary and non-monetary. - Stress, Moods and Conflict- Leadership and successful change in organisations.
Transformational, pluralistic, communication and conflict. - Leadership- Leadership in organizations, managers and leaders, leadership traits, management styles. contingency approach, leadership and the organizational culture.
- Individual Behavior at Work – Personality, traits and types, its relevance in understanding self, self-image and others.
What are the important textbooks and articles for reference?
- Bavelas, A (1948) – A Mathematical Model of Group Structure, Applied Anthropology, Volume 7
- Belbin, R (1981) – Management Teams: Why They Succeed or Fail, Butterworth-Heinemann
- Dumaine, R (1994) – Team Structures, Penguin
- Handy, C (1997) – Understanding Organisations
- Kanter, Rosabeth Moss (1977) – Men and Women of the Corporation
- Likert, R (1961) – New Patterns of Management, McGraw-Hill
- Schein, E (1988) – Process Consultation, Addison-Waley
- Needham, D et. al (2001) – Business for Higher Awards. 2nd edition, Heinemann, Oxford
- Tuckman, B and Jensen, N (1997) – Stages in Small Group Development, Group and Organisational Studies, Volume 2
Organizational Behaviour MBA 1st Semester Notes Download
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MBA Organizational Behaviour Syllabus in Detailed Structure
The MBA Organizational Behaviour syllabus has given in the following Units.
Unit – I
Nature of Management – Social Responsibility Ties of Business –
Manager and Environment Levels in Management – Managerial Skills – Planning – Steps in Planning Process – Scope and Limitations – Short Range and Long Range Planning – Flexibility in Planning ¬Characteristics of a sound Plan – Management by Objectives (MBO) – Policies and Strategies – Scope and Formulation – Decision Making – Techniques and Processes.
Unit-II
Organising – Organisation Structure and Design – Authority
and Responsibility Relationships – Delegation of Authority and
Decentralisation – Interdepartmental Coordination – Emerging Trends in Corporate Structure, Strategy and Culture – Impact of Technology on Organisational design – Mechanistic vs Adoptive Structures – Formal and Informal Organisation.
Unit – III
Perception and Learning – Personality and Individual Differences
– Motivation and Job Performance – Values, Attitudes and Beliefs – Stress Management – Communication Types-Process – Barriers – Making Communication Effective.
Unit – IV
Group Dynamics – Leadership – Styles – Approaches – Power and
Politics – Organisational Structure – Organisational Climate and Culture – Organisational Change and Development.
Unit – V
Comparative Management Styles and approaches – Japanese
Management Practices Organisational Creativity and Innovation –
Management of Innovation – Entrepreneurial Management – Benchmarking – Best Management Practices across the world – Select cases of Domestic & International Corporations – Management of Diversity.
MBA Organizational Behaviour Review Questions
- Explain the different levels in management and how the scope of authority and responsibility varies from one level to the other.
- What are the skills required by a manager as he moves up the
hierarchy? What methods do you suggest to equip the managers those skills? - Explain the importance of conceptual skills for long term survival of an organisation. How do good conceptual skills a firm gain a competitive advantage? Give appropriate examples
- Examine the different roles played by a manager of a typical
business organisation. - Explain the roles and responsibilities of major stakeholder of a business organisation.
- What do you mean by the social responsibility of business? Do you subscribe to the view that business has responsibilities other than making a profit? Substantiate your answer drawing from real examples.
- Much of the talk about social responsibility is more of rhetoric in nature. Examine the statement and present your views. You are welcome to interact with management personnel and present your viewpoints.
- Present your views for and against the social responsibility of
business. - Explain the influence of various forces of the environment on
business. - Describe the major factors in the environment of business and how they affect the survival of an organisation.
- Present the case of at least two Indian Companies and explain how they responded to changes in the environment.
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FAQs on MBA Organizational Behaviour Notes
1. From Where can I download MBA Organizational Behaviour Notes PDF?
Aspirants can use the quick links on this page to access the MBA Organizational Behaviour Study Material & Notes.
2. What are reference textbooks for MBA Organizational Behaviour?
You can use the following Organizational Behaviour textbooks for reference during your preparation.
1. Bavelas, A (1948) – A Mathematical Model of Group Structure, Applied Anthropology, Volume 7
2. Belbin, R (1981) – Management Teams: Why They Succeed or Fail, Butterworth-Heinemann
3. Dumaine, R (1994) – Team Structures, Penguin
4. Handy, C (1997) – Understanding Organisations
3. What topics are to be studied in MBA Organizational Behaviour?
You can go through some of the important topics like The Human Side of the Enterprise, Organisational Culture, Authority and power, Leadership, Motivation and Work Engagement, etc.
4. Where can one find MBA Organizational Behaviour Lecture Notes?
Aspirants can use the aforementioned article to know about the study material & notes for MBA Organizational Behaviour. You can have plenty of resources online for MBA Organizational Behaviour Notes.