Group behaviour is greatly influenced by the conditions of the organization within which the groups perform.
The organizational conditions include organizational strategy, authority, structure, formal regulations, organizational resources, the personnel selection process, physical work setting, organizational culture, performance evaluation and reward system and the social and economic conditions of the country.
1. Organizational strategy:
Organizational behaviour depends mainly on the organizational strategy.
If the organizational strategy is to help the supervisor on all fronts, the employees will be directed towards that goal.
Similarly, the behaviour of employees should be such as to reduce costs, improve quality, and expand the market and so on.
The strategy of an organization influences the power of various groups. The willingness of the top management to allocate resources influences the various activities of the organization and the behaviour of employees is influenced accordingly.
2. Authority structures:
The authority structure influences the behaviour of various cadres, as it stipulates power and authority to different cadres of management.
The hierarchical relationship is developed to exercise their respective powers and authority. Higher authority has more power and lower authority is vested with less power. The nature of the authority structure influences employee behaviour.
The rules and regulations developed for directing employees’ behaviour have been accepted as the guiding factors of behaviour.
Policies, procedures and programmes are designed to motivate employees. Formal regulations have resulted in standardized behaviour. Informal rules create confusion and contradictions.
The resources of an organization are used for achieving organizational goals. Many times, employees feel frustrated because of the non-availability of adequate and proper resources.
High quality raw materials, tools and techniques make employees interested in work performance.
Employees feel satisfied if they are given quality raw materials for turning out quality products. Similarly, the absence of inadequate supply of raw materials, machines and money discourages the employees’ performance.
5. Selection process:
Merited employees are work-oriented. Employees getting appointments or promotions by canvassing are giving more importance to political considerations.
They are not interested in the organization’s development. The selection process should be judicious and proper for achieving the desired behaviour from the employees.
6. Physical work setting:
The work structure has an important bearing on behaviour. The arrangement of work, machines, equipment and size is specially considered under work setting.
If raw material is placed very far away from the production site, employees get opportunities to waste time.
If the supervisor asks them to work properly, they will blame the arrangement of raw materials and the shortage of raw materials for delays in production. Work setting presents barriers as well as opportunities for improving work behaviour.
7. Organizational culture:
Work culture includes work behaviour. An indifferent attitude on the part of the management creates indifferent behaviour.
Every organization has its own culture. Employees behave as per the existing culture of the organization.
The importance of honesty and integrity is realized in big organizations. The old values and traditions are practised for maintaining positive behaviour. The management has a great role to play in inculcating organizational culture.
8. Performance evaluation and reward:
The systems of performance evaluation and reward have a great impact on employee behaviour.
Equitable distribution of rewards encourages employees and satisfies them. When employees are appreciated for their additional performance, they are highly motivated to demonstrate their capacities and capabilities.
On the contrary, partial rewards tend to discourage employees causing them to resort to unethical practices.
Frustration mars the development of an organization. The behaviour of individuals and groups is channelized through performance evaluation and reward.
9. Social and economic conditions:
An organization is influenced by social and economic conditions. In a developing economy, transitional upheavals are witnessed, causing behavioural instability.
A developed economy witnesses stabilized behaviour which is predictable and preventable. The Indian economy is presently undergoing a social and economic change and the country is facing diverse behaviour.
Some people are highly ethical and honest, while others are purely materialistic. Many honest employees face recognition problems.
Dishonesty and flattery are rewarded, and this creates imbalances in the mind. Social and economic conditions therefore influence the working of an organization.