Core Concepts in Organizational Behavior and Human Resource Management

Posted on Dec 5, 2025 in Other subjects

Major Contributing Disciplines to Organizational Behavior

The major contributing disciplines to the field of Organizational Behavior (OB) are Psychology, Sociology, Social Psychology, Anthropology, and Political Science.

Psychology: This discipline, which seeks to measure and explain behavior, provides significant input into understanding individual behavior in organizations. Key areas include learning, perception, personality, emotions, motivation, job satisfaction, and decision-making processes.
Sociology: Sociologists study people in relation to their fellow human beings, and their greatest contribution to OB is through their study of group behavior in organizations. This includes group dynamics, work teams design, organizational culture, formal organization theory and structure, and conflict.
Social Psychology: This blends concepts from psychology and sociology to focus on the influence of people on one another. It is particularly valuable for understanding behavioral change, attitude change, communication patterns, and group decision-making processes.
Anthropology: The study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments helps in understanding differences in fundamental values, attitudes, and behaviors between people in different countries and within different organizations, thus contributing to the understanding of organizational culture.
Political Science: This field studies the behavior of individuals and groups within a political environment, contributing to the understanding of power dynamics, conflict structuring, and how people manipulate power within organizations.

Social Learning Theory and Human Behavior

Social Learning Theory (SLT), primarily associated with Albert Bandura, helps to understand human behavior by explaining that people can learn new behaviors by observing others, without direct reinforcement or punishment.

The theory emphasizes the importance of cognitive processes and outlines four component parts to the modeling process:

Four Components of the Modeling Process

Attention: Individuals must pay attention to the model’s behavior and its consequences to learn from it.
Retention: The observed behavior must be stored in memory so it can be retrieved later.
Reproduction: The learner must be able to physically or mentally reproduce the observed behavior.
Motivation: People are more likely to exhibit the behavior if they are motivated to do so, often because they expect positive reinforcement (vicarious reinforcement).

Example: In the workplace, a new employee might learn customer service techniques by watching an experienced colleague interact with clients. If the new hire sees the colleague receive praise for their excellent service (vicarious reinforcement), they are more likely to adopt those same positive communication habits.

Measuring Job Satisfaction in an Organization

Organizations primarily measure job satisfaction using employee satisfaction surveys, though other methods like interviews, analysis of metrics (turnover/absenteeism rates), and feedback systems are also common.

Common Methods for Measuring Job Satisfaction

Employee Satisfaction Surveys: These are the most common method, often using anonymous questionnaires to gather quantitative and qualitative data on various factors like pay, benefits, work-life balance, and company culture.
One-on-One Interviews & Focus Groups: These methods allow for direct, detailed, and open-ended feedback from employees, helping managers to understand specific issues and suggestions for improvement.
Performance Metrics Analysis: High employee turnover and absenteeism rates are strong indicators of low job satisfaction. Monitoring internal promotion rates and new hire retention rates also provides insight into overall satisfaction and engagement levels.
eNPS (Employee Net Promoter Score): This uses a single question (“How likely are you to recommend our company as a great place to work?”) to gauge employee loyalty and satisfaction.

Example: An organization might conduct an annual, anonymous online survey asking employees to rate their satisfaction with their manager on a scale of 1 to 10. A low average score in a particular department would flag an issue for HR and management to investigate further through methods like focus groups or one-on-one “coaching sessions”.

Different Methods of Job Design

Job design is the process of defining how work will be performed and which tasks will be required for a given job. Key methods for job design include job simplification, job rotation, job enlargement, and job enrichment.

Job Simplification: This method breaks a job down into small, standardized, and easily repeatable tasks. The goal is efficiency, though it can lead to boredom and low motivation.
Job Rotation: This involves systematically moving employees from one job to another to introduce variety and broaden their skill set. It helps reduce monotony but the tasks themselves remain simple.
Job Enlargement: This horizontally expands a job by increasing the number and variety of tasks an individual performs within the same level of responsibility. The aim is to reduce boredom and increase skill diversity.
Job Enrichment: This vertically expands a job by giving the employee more control, responsibility, and authority over their work (e.g., planning, executing, and evaluating their own tasks). This method aims to provide meaningful work and high intrinsic motivation.

Necessity and Techniques of Management Development

Management development is necessary to ensure a continuous supply of competent managers capable of leading the organization effectively in a dynamic environment. It helps new managers gain necessary soft skills, updates experienced managers on new ideas and policies, ensures long-term leadership availability, and improves overall organizational performance.

Two Common Techniques

Coaching: This is an on-the-job technique where a trainee is placed under a senior manager who acts as an instructor and guides them in job knowledge, skills, and decision-making.
Case Study Method: This is an off-the-job technique where trainees analyze and discuss a comprehensive description of an actual business situation (a “case”). This method improves analytical and decision-making skills in a controlled environment.

Major Performance Appraisal Practices in Nepalese Organizations

While specific practices vary by organizational maturity, common performance appraisal practices in Nepalese organizations often involve a mix of performance achievement results and desired behaviors, typically incorporating clear goal setting (KPIs/KRAs), regular performance conversations, and consequence management.

Goal and Behavior Assessment: Most organizations use a combination of tangible performance goals (Key Performance Indicators/Key Result Areas) and desired behaviors (e.g., leadership competencies, alignment with core values). A common weighting might be a 70:30 mix of results versus behavior.
Regular Conversations: There is an increasing focus on continuous performance management through regular “performance conversations” and feedback loops, rather than just annual reviews. This involves ongoing guidance and “feed forward” to help employees prepare for future responsibilities.
Consequence Management: The results of the appraisal directly influence outcomes such as salary increments, promotions, performance pay, retention bonuses, and other rewards and recognition.
Personal Development Plans (PDPs): Along with the assessment, PDPs are finalized to identify skill gaps and create training/development plans for the future.

Emerging Issues and Challenges of Human Resource Management (HRM)

Human Resource Management (HRM) faces several critical emerging issues and challenges in the modern environment, which require strategic and adaptive responses.

Emerging Issues and Challenges

Talent Acquisition and Retention: Attracting top talent is a major concern, and retaining them requires more than just good pay. Companies must offer a positive culture, growth opportunities, flexible work arrangements, and competitive benefits to prevent high turnover.
Workforce Diversity and Inclusion: Managing a diverse workforce with varying backgrounds, ages, and expectations (e.g., millennials demanding purpose and work-life integration) requires inclusive policies and practices.
Technological Advancements: The rapid pace of technology (AI, automation, mobile tech) necessitates continuous upskilling and training of employees to ensure competency and adapt to new ways of working.
Change Management: HR plays a crucial role in guiding organizations through constant change (e.g., new leadership, structure shifts, tech adoption), minimizing employee resistance and ensuring smooth transitions.
Employee Well-being and Burnout: Addressing workplace stress, burnout, and mental health has become critical. Fostering a healthy work culture and offering work-life balance initiatives are essential for productivity and retention.
Ethical Behavior and Transparent Communication: Employees value transparent communication and ethical behavior from leadership. Creating a culture that promotes this is a key challenge for HR.

Evaluating and Measuring Training Effectiveness

Organizations evaluate training effectiveness to determine if the training is beneficial and provides a return on investment (ROI). A widely used approach is the Kirkpatrick Model, which assesses effectiveness at four levels: Reaction, Learning, Behavior, and Results (Business Impact).

The Kirkpatrick Model

Level 1: Reaction: Measures how participants felt about the training (e.g., did they like it, find it useful?). Measurement Method: Post-training surveys or feedback forms.
Level 2: Learning: Assesses what knowledge or skills the participants actually learned. Measurement Method: Pre- and post-training quizzes, tests, or assessments.
Level 3: Behavior: Determines if employees are applying their new knowledge or skills back on the job. Measurement Method: Observations by supervisors or peers, performance reviews, and 360-degree feedback.
Level 4: Results (Business Impact): Measures the final impact on organizational outcomes and KPIs (e.g., productivity, quality, customer satisfaction, revenue). Measurement Method: Analyzing performance metrics and business data before and after the training period.

Example: A company implements a new sales software training program.

Reaction: They use a survey after the session to find that 85% of trainees found the content relevant and engaging.
Learning: A quiz before and after the training shows a 40% improvement in understanding the software’s features.
Behavior: Managers observe employees on the job a month later and confirm that most are actively using the new software correctly.
Results: The company tracks sales figures and finds a 10% increase in sales efficiency three months post-training, demonstrating a positive business impact.

Necessity and Approaches to Managing Organizational Change

Organizational change is necessary for companies to remain viable, competitive, and to adapt to shifts in the dynamic internal and external environment.

Reasons for Change

External Forces: To respond to new competitors, changes in technology, evolving customer demands, market shifts (e.g., globalization), and new laws or regulations.
Internal Forces: To address issues like new leadership, poor performance, shifts in organizational structure, low morale, the need for efficiency improvements, or implementing new strategies.

Approaches to Managing Organizational Change

Top-Down Approach: Traditionally, this involves senior executives defining the change and pushing it down through the organization’s hierarchy. While fast, it often meets employee resistance.
Kotter’s 8-Step Process: A widely known framework that focuses on communication and employee buy-in. Steps include creating urgency, forming a powerful coalition, creating a vision for change, communicating the vision, empowering action, generating short-term wins, consolidating gains, and anchoring the changes in the culture.
McKinsey 7-S Framework: This model focuses on the interconnectedness of seven internal factors (Structure, Strategy, Systems, Skills, Staff, Style, and Shared Values). Change in one area (e.g., strategy) requires alignment in others to be successful.
Behavioral Approach: Focuses on involving employees in the process to reduce resistance. This involves using social psychology principles like group decision-making, effective communication, and creating a supportive environment that empowers individuals.
Adaptive/Incremental Approach: Involves small, ongoing, and continuous changes to processes and technology to address evolving needs over time, making large, sudden transformations less disruptive.