Introduction. Modern organisations are complex social systems in which people belonging to different backgrounds, values, attitudes and abilities work together for common objectives. Merely having sound financial plans and advanced technology is not enough; success ultimately depends on how effectively the human resources are understood and managed. It is in this context that Organisational Behaviour (OB) has emerged as an important field of study. It provides systematic knowledge about human behaviour at work and offers different models to understand and influence that behaviour. The study of the need of OB and the various OB models is therefore essential for every manager, especially for those dealing with people in business organisations.
I. Need and Importance of Organisational Behaviour
The need for studying Organisational Behaviour arises from several practical considerations. The major reasons are discussed below:
1. To Understand Human Behaviour in Organisations
Every individual is different in terms of personality, attitudes, emotions, values, motives and expectations. These differences cause people to behave differently in similar situations.
- OB helps managers to understand why people behave as they do at work – why some employees are highly committed while others are indifferent, why some resist change, why some cooperate while others create conflict.
- It explains the impact of perception, learning, personality, motivation and leadership on behaviour.
Without such understanding, managers will rely on guesswork or trial-and-error in dealing with their subordinates.
2. To Predict Behaviour and Prepare for the Future
A second important need is to predict how people are likely to behave in different organisational situations.
- OB provides theories and models which help in forecasting employees’ reactions to changes in technology, policies, leadership style, reward systems and organisational structure.
- Such prediction reduces uncertainty and allows managers to plan suitable strategies for implementation of change, for introducing new schemes and for managing resistance.
Thus, OB helps managers to anticipate behavioural consequences and to be better prepared for future events.
3. To Influence and Direct Behaviour in a Desired Direction
Organisations are created to achieve certain goals. In order to achieve these goals, the behaviour of individuals and groups must be influenced and directed appropriately.
- OB provides knowledge regarding how to motivate employees through financial and non-financial incentives, job design, participation and recognition.
- It suggests what type of leadership style, communication pattern and control system should be adopted to secure the cooperation and commitment of employees.
- It guides managers in modifying undesirable behaviour such as absenteeism, low productivity, indiscipline and resistance to change.
Thus, OB equips managers with tools to channelise human energy towards organisational objectives.
4. To Improve Organisational Effectiveness and Efficiency
The ultimate need of OB is to improve organisational effectiveness – that is, achieving organisational goals with maximum efficiency and employee satisfaction.
- By understanding and managing behaviour, OB helps in reducing wastage of human effort, minimising labour turnover, absenteeism and conflicts.
- It assists in designing appropriate organisational structures, work processes and group arrangements which lead to better coordination and higher productivity.
- OB emphasises creating synergy where the combined performance of individuals and groups is greater than the sum of their individual efforts.
Hence, OB is essential for the survival, growth and profitability of organisations.
5. To Enhance Employee Motivation, Satisfaction and Morale
Employees are the backbone of any organisation. Their performance is directly related to their motivation, job satisfaction and morale.
- OB helps managers to understand the various needs and motives of employees and to design appropriate reward systems.
- It provides insight into factors affecting job satisfaction such as nature of work, working conditions, supervision, pay and interpersonal relationships.
- By creating a supportive and participative environment, OB helps in improving employee morale and commitment.
High morale and job satisfaction, in turn, lead to better performance and lower labour problems.
6. To Manage Change and Organisational Development
Business environment today is characterised by rapid changes in technology, competition, customer preferences and government policies. Organisations must continuously adapt to these changes.
- OB helps in understanding the human side of change – why people resist change, what fears they have and how they can be involved in the change process.
- It provides techniques of organisational development (OD) such as team-building, sensitivity training, survey feedback and process consultation to bring about planned change.
Thus, OB is needed for managing change smoothly and for developing flexible and responsive organisations.
7. To Improve Interpersonal Relations and Teamwork
Organisations function through groups and teams rather than isolated individuals.
- OB helps in understanding group dynamics, formation of groups, group norms, roles, status and communication patterns.
- It guides managers in managing conflicts, building cooperation and improving interpersonal relations among employees.
- Effective teamwork results in better problem-solving, innovation and decision-making.
Therefore, OB is needed to create a climate of trust, mutual respect and collaboration.
8. To Build a Positive Organisational Culture and Climate
Every organisation develops its own culture and climate which influence the behaviour and attitudes of its members.
- OB explains how organisational culture is created through shared values, beliefs, symbols and rituals.
- It helps managers to shape and maintain a positive culture that supports innovation, integrity, teamwork and customer orientation.
- By improving organisational climate, OB enhances the overall “feel” of the organisation and makes it a better place to work.
9. To Promote Ethical Behaviour and Social Responsibility
In recent years, society has become more concerned about the ethical and social responsibilities of business organisations.
- OB deals with the role of individual values, moral development and organisational culture in shaping ethical behaviour.
- It helps in designing systems and practices that discourage unethical acts such as discrimination, exploitation, fraud and corruption.
- Through value-based leadership and ethical climate, OB contributes to responsible behaviour towards employees, customers, investors and society at large.
In brief, the need of Organisational Behaviour arises because organisations are run by people and it is only through proper understanding and management of people that organisational goals can be effectively achieved.
II. Models of Organisational Behaviour
To apply OB in practice, managers use certain models or frameworks which represent different assumptions about people and different ways of managing them. The commonly discussed Organisational Behaviour models (as explained in standard OB texts and followed in the syllabus) are:
- Autocratic Model
- Custodial Model
- Supportive Model
- Collegial Model
- System Model
Each model is based on a particular view of human beings and leads to a distinct managerial style and employee response.
1. Autocratic Model
The autocratic model is the oldest and traditional model of OB.
(a) Assumptions
- Management believes that authority is the only way to get things done.
- Employees are assumed to be passive, lazy and work mainly for money.
- The manager is the boss and his duty is to issue orders; the duty of subordinates is to obey.
(b) Basis of Model
- The basis of this model is managerial authority and power derived from formal position in the organisation.
- Obedience is obtained through fear of punishment and disciplinary action.
(c) Managerial Orientation
- The managerial orientation is towards authority.
- Managers centralise decision-making and control almost all activities.
(d) Employee Orientation and Performance
- Employee orientation is towards obedience and dependence on the boss.
- Performance is often minimum; employees do only what is ordered and necessary to save their jobs.
- Job satisfaction is low; there may be frustration, insecurity and lack of initiative.
(e) Evaluation
This model may work in crisis situations or where workers are unskilled and jobs are simple. However, in modern organisations with educated employees, it creates dissatisfaction, low morale and resistance.
2. Custodial Model
The custodial model developed as a reaction to the shortcomings of the autocratic model. Here the emphasis shifts from power to money and economic security.
(a) Assumptions
- Management believes that if employees are provided with good wages, benefits and facilities, they will be loyal and well-behaved.
- Employees are viewed as security-seeking individuals.
(b) Basis of Model
- The basis of this model is the organisation’s economic resources.
- Managers use wages, fringe benefits, pensions, insurance and other financial rewards to keep employees satisfied.
(c) Managerial Orientation
- The managers’ orientation is towards providing a caretaking or custodial environment.
- The organisation assumes the role of a “welfare provider”.
(d) Employee Orientation and Performance
- Employees become dependent on the organisation for security and benefits.
- Job satisfaction improves to some extent because economic and security needs are met.
- However, employees may show only passive cooperation. They may feel comfortable but not highly motivated or creative.
(e) Evaluation
The custodial model reduces frustration and improves satisfaction compared to the autocratic model, but it does not fully utilise the higher-level needs of employees such as achievement, recognition and self-actualisation.
3. Supportive Model
The supportive model is based on modern behavioural science and is more consistent with the requirements of a dynamic environment.
(a) Assumptions
- Management assumes that employees are not by nature passive or resistant to organisational needs; they can be self-motivated and responsible.
- People seek recognition, challenge and participation rather than only security.
(b) Basis of Model
- The basis of this model is leadership and support rather than authority or money.
- Managers try to create a climate where employees are helped and encouraged to grow and perform.
(c) Managerial Orientation
- The managerial orientation is to support employees in their work and development.
- Managers coach, guide and facilitate rather than command and control.
(d) Employee Orientation and Performance
- Employees feel a sense of participation, recognition and status.
- Their orientation shifts from mere dependence to greater self-direction and involvement.
- Performance improves because employees feel motivated and responsible for their own work.
(e) Evaluation
This model is more suitable for organisations employing educated and skilled workers. It leads to higher job satisfaction, better cooperation and greater initiative.
4. Collegial Model
The collegial model goes a step further than the supportive model. The term “collegial” is derived from “colleague”, meaning people working together as partners.
(a) Assumptions
- Employees are treated as partners in a team rather than subordinates.
- Each member has a unique contribution to make and shares responsibility for results.
(b) Basis of Model
- The basis is teamwork and shared responsibility.
- Structure is often flat; emphasis is on participation and collaboration.
(c) Managerial Orientation
- Managers behave as team leaders or coaches rather than bosses.
- They rely on mutual respect, trust and joint problem-solving.
(d) Employee Orientation and Performance
- Employees feel a sense of self-discipline and self-control.
- Their orientation is towards responsibility and contribution to team goals.
- High levels of commitment, creativity and satisfaction are generally observed.
(e) Evaluation
This model is particularly effective in professional organisations where employees are highly educated, such as consultancy firms, universities and research organisations. However, it may be difficult to implement in highly bureaucratic or large-scale organisations.
5. System Model
The system model is the most modern approach. It views the organisation as an open system composed of interrelated and interdependent parts, interacting with the environment.
(a) Assumptions
- Employees have complex needs including economic, social, psychological and self-fulfilment needs.
- Organisation must provide not only wages and working conditions but also meaningful work, social support, opportunities for growth and ethical environment.
(b) Basis of Model
- The basis is trust, shared values and mutual interest between organisation and employees.
- Management recognises that long-term success depends on balancing organisational goals with human and social goals.
(c) Managerial Orientation
- Managers focus on caring, development and empowerment of employees.
- They design systems of communication, participation, rewards and development which support overall well-being.
(d) Employee Orientation and Performance
- Employees feel a sense of trust, loyalty and psychological ownership towards the organisation.
- They are encouraged to realise their full potential and to contribute creatively.
- Performance, innovation and adaptability are high because employees identify themselves strongly with organisational values.
(e) Evaluation
The system model represents the ideal, value-based model of OB, emphasising long-term relationships, ethical conduct and social responsibility. It is difficult to implement fully, but many progressive organisations are moving in this direction.
III. Comparative View of OB Models
For examination purposes, it is useful to note the major differences among these models in a summarised way:
- Autocratic: Basis – power; managerial orientation – authority; employee orientation – obedience; result – minimum performance.
- Custodial: Basis – economic resources; managerial orientation – welfare; employee orientation – security and dependence; result – passive cooperation.
- Supportive: Basis – leadership; managerial orientation – support; employee orientation – participation; result – awakened drives and better performance.
- Collegial: Basis – partnership and teamwork; managerial orientation – team leadership; employee orientation – self-discipline and responsibility; result – moderate to high performance with enthusiasm.
- System: Basis – trust and shared values; managerial orientation – caring and development; employee orientation – psychological ownership; result – high commitment, satisfaction and long-term effectiveness.
Conclusion: In conclusion, the study of Organisational Behaviour is needed to understand, predict and influence human behaviour in organisations so that both organisational and individual goals can be achieved harmoniously. OB helps in improving motivation, leadership, communication, teamwork, organisational culture and quality of work life. The various OB models – autocratic, custodial, supportive, collegial and system – present different philosophies and strategies of managing people. Modern organisations increasingly move away from the autocratic and custodial models towards supportive, collegial and system models, as these are better suited to the aspirations of today’s educated workforce and to the demands of a dynamic environment.