OB System and Levels of Analysis

OB System

A system is a set of interacting or interdependent components forming an integrated whole. Generally, all system consists of input variables, conversion process and output variables. Here, OB system also consists of human input and human output. The Exhibit ... presents the skeleton on which we will construct OB model⁶ (For our purpose, the OB model represents the OB system.). A model is an abstraction of reality, a simplified representation of some real world phenomenon. It proposes that there are three levels of analysis in OB and that, as we move from the individual level to the organization systems level, we add systematically to our understanding of behaviour in organizations. The three basic levels are building blocks as each level gets constructed upon the previous level.

The Dependent Variables

These are the key factors that a manager wants to predict or forecast that are affected by some other factors. The dependent variables are also called the output variables as we get them as output after some inputs get processed. All together five variables are emphasized by scholars as output variables in the field of OB, they are – productivity, absenteeism, turnover, organizational citizenship, and job satisfaction. Let’s discuss them in brief.

Productivity – A productive organization achieve its goals effectively and efficiently. Effectiveness is getting right things whereas efficiency is getting things right. Effectiveness implies finding the direction and achieving the goals where as efficiency is utilizing the resources in wise or cost effective manner to achieve goals. Productivity depends upon how effectively and efficiently the resources are utilized or engaged. Here, OB describes what factors will influence the effectiveness and efficiency of individuals, of groups, and of the overall organization.

Absenteeism – Absenteeism is another independent variable that means the absence of employee at work. Absenteeism simply hampers the smooth operation of work and it disrupts the flow of work. It may reduce productivity, quality and image of the organization. Hence, it is assumed that low absenteeism benefits the organizations.

Turnover – This output variable indicates the employees leaving the organization permanently voluntarily or involuntarily. Turnover may be positive when below or average performers quit their jobs. It gives organization an opportunity to replace them with high skilled and motivated people at the same position. But turnover often involves the loss of people the organization doesn’t want to lose. A high turnover rate results in increased recruiting, selection, orientation, and training costs. Moreover, high turnover may hamper the efficient operation of an organization by losing competent, experienced and knowledgeable employee(s). Hence, organization prefers low turnover.

Organizational Citizenship Behaviour (OCB) – OCB is mandatory to people as it is not an employee’s formal job requirements. When and where if employee exhibits the behavior beyond his/her job descriptions and if such behavior supports the effective functioning of the organization, it is called OCB. Helping coworkers in a team, showing care for organizational property, avoiding unnecessary conflict, showing flexibility, volunteering, showing tolerance for burdens and troubles etc are some ‘good citizenship’ behaviours. OCB is desired output variables of every organizations.

Job satisfaction – It can be defined as employee’s attitude toward his/her job. Unlike other dependent variables, it represents an attitude rather than behavior. It is believed that satisfied employees are more productive than dissatisfied employees has been a basic precept among managers for years. Not only is satisfaction negatively related to absenteeism and turnover, but the researcher argue, organizations have a responsibility to provide employees with jobs that are challenging and intrinsically rewarding. Hence, OB researchers typically consider it an important dependent variable.

The Independent Variables (Inputs)

These independent variables are the inputs in the OB system. In OB model at Exhibit …, shows the three levels of analysis and there are variables at three levels, they are individual, group and organization.

Individual-level variables consists of biological characteristics such as age, gender, and marital status; personality characteristics and inherent emotional framework; values and attitudes; and ability. These variables have a profound impact on employee behavior. Likewise, there are four other individual-level variables they affect on employee behavior are perception, individual decision making, individual learning and motivation.

Group-level variables are more complex than the sum total of all the individuals acting in their own way. It becomes obviously complex when people behave in groups that when they are alone. The design of work teams, group structure and size of group are the important variables. Likewise, group dynamics, communication patterns, group decision making, leadership style and trust, and levels of conflict affect group behavior.

Organization system level variables are more sophisticated and complex. When we add formal structure of organization to our previous knowledge of individual and group behavior, OB reaches its organization systems level analysis and the independent or input variable are the design of formal organization, work process and jobs; the organization’s HR policies and practices (i.e., Selection processes, training programs, performance appraisal etc) and organizational culture.

In summary, OB System as represented by the Basic OB Model helps to understand, describe, explain or predict and manage organizational activities. It helps manager or supervisor to get desired pattern of behavior. Human input along with change and stress variable as input in the model finally give human output that affect upon organizational productivity, absenteeism, turnover, organizational citizenship, and job satisfaction. Human input here gets analyzed in three different levels.

Levels of OB analysis

As we discussed in OB system, OB studies the behavior within organization-setting at three levels, they are –

i. Individual-level

ii. Group-level

iii. Organization system level

The individual-level analysis includes the individual-level variables; the group-level analysis involves group-level variables. The group-level variables includes the way two or more individuals interrelate, interact or interdependent with each other to accomplish certain jobs and achieve objectives. And, the organization system level analysis focuses on organization system level variables. Organization comprises many formal and informal groups. Whole working of organization depends upon interaction, interrelation and interdependency of various groups. The organizational structure, culture, policies and practices regarding human resources are few major variables for analysis. (Also see OB System)