18 Organisational Behaviour: Concept, Scope and Nature — Foundations, Three Levels of Analysis, Contributing Disciplines, OB Models and Hawthorne Roots

18.1 Why Study OB?

Organisational Behaviour (OB) is the systematic study of what people do in organisations and how their behaviour shapes — and is shaped by — the organisation’s performance. Where management studies what managers should do, OB studies what people in general actually do at work, drawing on psychology, sociology, social psychology, anthropology and political science. The field’s roots lie in the Hawthorne experiments (1924-32), which first revealed that productivity depends as much on the social structure of work as on its physical conditions.

18.2 1 · Definition and Concept

Three Standard Definitions of OB

Author	Definition
Stephen P. Robbins	“A field of study that investigates the impact that individuals, groups and structure have on behaviour within organisations, for the purpose of applying such knowledge towards improving an organisation’s effectiveness”
Fred Luthans	“The understanding, prediction and management of human behaviour in organisations”
Keith Davis	“The study and application of knowledge about how people act within organisations”

Three elements run through every definition:

Subject — behaviour of people at work.
Method — systematic study, not casual common sense.
Purpose — improve organisational effectiveness.

18.3 2 · Nature of OB — Seven Features

Seven Features of the Field

Feature	Description
Behavioural science approach	Uses scientific method — observation, hypothesis, evidence
Multi-disciplinary	Draws on several behavioural sciences
Three levels of analysis	Individual, group, organisation
Goal-oriented	Aims at performance and well-being
Action-oriented	Knowledge meant to be applied
Humanistic	Treats people as ends, not only as means
Contingent	“It depends” — no one best way for every situation

18.4 3 · Three Levels of Analysis

Most textbook treatments organise OB around three levels — each adding to the layer below.

Three Levels of OB

Level	What it studies	Typical topics
Individual	Behaviour of one person	Personality, perception, learning, attitudes, motivation, stress
Group	Behaviour in and of teams	Team formation, communication, leadership, power, conflict
Organisation	Whole-system behaviour	Structure, culture, change, OD, organisational effectiveness

flowchart TB
  I[Individual level<br/>personality · perception<br/>learning · attitudes<br/>motivation · stress]
  G[Group level<br/>teams · communication<br/>leadership · power<br/>conflict]
  O[Organisation level<br/>structure · culture<br/>change · OD]
  I --> G --> O
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

18.5 4 · Disciplines Contributing to OB

Disciplines Feeding OB

Discipline	Level mainly served	Topics contributed
Psychology	Individual	Personality, perception, learning, motivation, attitude, stress
Social psychology	Individual + group	Attitude change, group dynamics, communication, behaviour change
Sociology	Group + organisation	Group behaviour, organisational structure, formal organisation theory
Anthropology	Organisation	Organisational culture, cross-cultural differences
Political science	Organisation	Power, conflict, intra-organisational politics

PYQ trap — Anthropology contributes CULTURE

NTA stems frequently pair the discipline with its main contribution. Anthropology → organisational culture; Political science → power and politics; Psychology → individual behaviour; Sociology → group dynamics and structure.

18.6 5 · Scope of OB

The scope spans virtually every people-related topic in an organisation:

Individual behaviour — personality, perception, learning, attitude, values, emotions, motivation, stress, decision-making.
Inter-personal and group behaviour — communication, leadership, teamwork, conflict, power, politics.
Organisational structure and design — span of control, departmentation, formalisation, centralisation, mechanistic vs organic.
Organisational culture — values, norms, symbols, socialisation.
Organisational change and development — planned change, OD interventions.
Organisational effectiveness — measurement and improvement.

18.7 6 · The OB Models — Davis’s Four

Keith Davis offered the most widely cited classification of OB models, each defined by the implicit assumption a manager holds about people and work.

Davis’s Four OB Models

Model	Basis	Managerial orientation	Employee orientation	Outcome
Autocratic	Power	Authority	Obedience	Subsistence
Custodial	Economic resources	Money	Security and benefits	Passive cooperation
Supportive	Leadership	Support	Job performance	Awakened drives
Collegial	Partnership	Teamwork	Responsible behaviour	Moderate enthusiasm

Davis later added a fifth — System model — based on trust, community and meaning, with the employee oriented to psychological ownership.

Mnemonic — A-C-S-C-S

Autocratic → Custodial → Supportive → Collegial → System. The shift across the sequence is from control to commitment.

18.8 7 · The Hawthorne Studies — Birth of OB

Conducted at Western Electric’s Hawthorne Works (Cicero, Illinois) between 1924 and 1932, the studies were led by Elton Mayo, F.J. Roethlisberger and William Dickson.

Four Phases of the Hawthorne Studies

Phase	Study	Year	Finding
1	Illumination experiments	1924-27	Output rose with lighting changes — but also when lighting was reduced, suggesting non-physical factors mattered
2	Relay Assembly Test Room	1927-32	Output went up regardless of working conditions — attention itself improved performance (“Hawthorne effect”)
3	Mass Interview Programme	1928-30	Workers had unexpressed grievances and informal opinions of supervision; structured listening mattered
4	Bank Wiring Observation Room	1931-32	An informal group restricted output to a self-defined norm — informal organisation can defeat formal incentives

18.8.1 Key Hawthorne Conclusions

Workers are social beings — not merely economic.
Informal groups form around work and powerfully shape behaviour.
Supervision style and attention can lift output more than physical conditions.
Communication and grievance airing matter.
The factory is a social system, not merely a productive arrangement.

PYQ anchor — Hawthorne effect

The Hawthorne effect = the tendency of subjects to alter behaviour because they are being observed, not because of the intervention itself. Originated in the Relay Assembly Test Room phase.

18.9 8 · Human Relations vs OB

Human Relations Movement vs OB

Dimension	Human Relations (1930s-50s)	OB (1960s onward)
Roots	Hawthorne studies	Behavioural sciences broadly
Emphasis	Happy worker = productive worker	Behaviour is more complex than that
Methods	Mainly qualitative, case-based	Rigorous empirical research
Scope	Individual + small-group focus	Individual, group, organisation
View of conflict	Conflict is dysfunctional	Conflict can be functional
Driver	Mayo, Roethlisberger	Maslow, McGregor, Herzberg, Likert, then modern OB scholars

18.10 9 · OB as a Science and as an Art

OB is a science in its method — systematic observation, hypothesis testing, empirical evidence. It is an art in application — judgement, context, the manager’s sense for the situation. Both are required: theory without practice is empty; practice without theory is blind.

18.11 10 · Limitations of OB

Behavioural bias — over-emphasising people may neglect technology and economics.
Diminishing returns — at some level of investment, additional behavioural intervention adds little.
Manipulation risk — the same knowledge can be used to nudge people for their own good or against their interest.
Cultural relativity — much OB knowledge is Western in origin and must be re-tested elsewhere.
“It depends” can become an evasion — contingency thinking must still lead to a decision.

18.12 Practice Questions

Q 01 OB definition Easy

Organisational Behaviour is best described as:

APersonnel administration
BSystematic study of how individuals, groups and structure affect behaviour in organisations
CAccounting for human costs
DA branch of finance

View solution

Correct Option: B

Robbins's standard definition.

Q 02 Three levels Easy

The three classical levels of OB analysis are:

AStrategic, tactical, operational
BIndividual, group, organisation
CInput, process, output
DPlan, do, check

View solution

Correct Option: B

Individual → Group → Organisation.

Q 03 Anthropology Medium

Anthropology's primary contribution to OB is:

APersonality theory
BOrganisational culture and cross-cultural differences
CPower and politics
DStatistical methods

View solution

Correct Option: B

Culture and cross-cultural differences.

Q 04 Political science Medium

Power, conflict and intra-organisational politics are primarily contributed to OB by:

AAnthropology
BSociology
CPolitical science
DEconomics

View solution

Correct Option: C

Political science → power, conflict, politics.

Q 05 Hawthorne Medium

The Hawthorne studies were led primarily by:

AElton Mayo, Roethlisberger and Dickson
BF.W. Taylor and Frank Gilbreth
CHenri Fayol and Lyndall Urwick
DPeter Drucker and Edgar Schein

View solution

Correct Option: A

Mayo, Roethlisberger and Dickson, Western Electric, 1924-32.

Q 06 Hawthorne effect Medium

The "Hawthorne effect" refers to:

AWage rise as productivity rises
BChange in subject behaviour due to awareness of being observed
CReduced output under stress
DJob satisfaction with lighting

View solution

Correct Option: B

Subjects' awareness of being observed itself changes behaviour.

Q 07 Bank wiring Hard

The Bank Wiring Observation Room phase of the Hawthorne studies primarily showed that:

ALighting affects output
BInformal groups can restrict output to a self-defined norm
CBonus schemes always lift output
DWorkers are purely economic

View solution

Correct Option: B

Informal group norms can override formal incentive schemes.

Q 08 Davis models Medium

Which is not one of Keith Davis's OB models?

AAutocratic
BCustodial
CBureaucratic
DCollegial

View solution

Correct Option: C

Davis: Autocratic, Custodial, Supportive, Collegial (later +System).

Q 09 Davis order Hard

Arrange Davis's OB models in the order of their historical evolution:

(i) Supportive
(ii) Autocratic
(iii) Collegial
(iv) Custodial

A(ii), (iv), (i), (iii)
B(i), (ii), (iii), (iv)
C(ii), (i), (iv), (iii)
D(iv), (iii), (ii), (i)

View solution

Correct Option: A

Autocratic → Custodial → Supportive → Collegial.

Q 10 Match Hard

Match the discipline with its primary OB contribution:

(i)	Psychology	(a)	Power and politics
(ii)	Sociology	(b)	Personality and motivation
(iii)	Anthropology	(c)	Group behaviour and structure
(iv)	Political science	(d)	Organisational culture

A(i)-(b), (ii)-(c), (iii)-(d), (iv)-(a)
B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
C(i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
D(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)

View solution

Correct Option: A

Psy-personality; Soc-group/structure; Anthro-culture; Polsci-power/politics.

Q 11 Robbins Medium

The textbook definition of OB foregrounding "individuals, groups and structure" is associated with:

AStephen P. Robbins
BF.W. Taylor
CHenri Fayol
DMax Weber

View solution

Correct Option: A

Robbins.

Q 12 Custodial Medium

A firm that emphasises pension, medical, housing and other security-oriented benefits is operating closest to which Davis model?

AAutocratic
BCustodial
CSupportive
DCollegial

View solution

Correct Option: B

Custodial model — economic resources, security, benefits.

Q 13 Luthans Medium

Fred Luthans defines OB as the "understanding, prediction and management" of behaviour. Which is not implied?

ACausal understanding of behaviour
BPredictive power
CApplication for management
DCompliance with statutory norms

View solution

Correct Option: D

Compliance is a separate domain, not part of Luthans's definition.

Q 14 Illumination Hard

The Illumination experiments of the Hawthorne studies surprised researchers because:

AWorkers preferred darkness
BOutput rose even when lighting was reduced
COutput fell with both brighter and dimmer light
DLight bulbs broke too often

View solution

Correct Option: B

Output rose under both increased and decreased illumination — pointing to non-physical drivers.

Q 15 OB feature Easy

Which is not a feature of OB as a field?

AMulti-disciplinary
BAction-oriented
CContingent
DSingle-discipline

View solution

Correct Option: D

OB is multi-disciplinary, not single-discipline.

Q 16 System model Hard

Davis later added a fifth OB model rooted in trust, community and meaning. It is called the:

ANetwork model
BSystem model
CCultural model
DPower model

View solution

Correct Option: B

System model.

Q 17 HR vs OB Medium

A major difference between the Human Relations movement and modern OB is that OB:

ASees conflict as always dysfunctional
BRecognises that conflict can be functional
CRejects empirical research
DIgnores the group level

View solution

Correct Option: B

Modern OB sees moderate, task-focused conflict as functional.

Q 18 Group level Medium

Which topic is most clearly studied at the group level of OB?

APersonality
BPerception
CTeam dynamics
DOrganisational structure

View solution

Correct Option: C

Team dynamics is a group-level topic.

Q 19 Hawthorne phase Hard

The Mass Interview Programme phase of the Hawthorne studies revealed that:

AOutput depends only on incentives
BWorkers had unexpressed grievances and views on supervision that mattered
CLighting determines productivity
DRest pauses are unnecessary

View solution

Correct Option: B

Listening uncovers structured grievances and informal opinions.

Q 20 Behavioural bias Medium

A common criticism of OB is "behavioural bias", meaning:

AOver-reliance on intuition
BOver-emphasising people while neglecting technology and economics
CIgnoring quantitative methods
DExcessive trust in surveys

View solution

Correct Option: B

Behavioural bias = under-weighting non-behavioural factors.

18.13 Quick Recall

Quick recall

OB = systematic study of behaviour in organisations. Robbins: individuals × groups × structure → organisational effectiveness.
Three levels: Individual (personality, perception, motivation), Group (teams, leadership, communication, power), Organisation (structure, culture, change).
Contributing disciplines: Psychology (individual), Sociology (group + structure), Social psychology (attitudes, change), Anthropology (culture), Political science (power, politics).
Davis’s four OB models: Autocratic → Custodial → Supportive → Collegial (later +System). Mnemonic: A-C-S-C-S. Shift = control → commitment.
Hawthorne studies (1924-32) at Western Electric, led by Mayo, Roethlisberger, Dickson. Four phases: Illumination, Relay Assembly, Mass Interview, Bank Wiring.
Hawthorne effect = subject behaviour changes because of being observed.
Bank Wiring: informal groups can restrict output to a self-defined norm.
Human Relations vs OB: HR sees conflict as dysfunctional; OB recognises functional conflict.
OB limitations: behavioural bias, diminishing returns, manipulation risk, cultural relativity.