Organization

al Behaviour
CHAPTER 1:
ORGANIZATIONAL AND
INDIVIDUAL BEHAVIOR
Key Points:

 Fundamental concept of OB
 Models of OB
 Individual Behaviour
 Personality
 Perception

CO1
Understand
Understand how individual behavior influences organizational performance and
culture.
What is an Organization?

 An organization is a group of people who work

together to achieve individual and organizational goals
 Individual goals
 Organizational goals

 Individual goals are what people are trying to

accomplish. e.g. money, achieving power and
prestige, and enjoying work.

 Organizational goals are what the organization as a

whole is trying to accomplish such as providing
innovative products and services to customers, making
a profit.
What is behavior

• The way in which an animal or person acts in response to a

particular situation or stimulus:
• Outcome of internal and external forces is called stimuli.
• Behavior is socially driven purposeful action.
• Behavior(B)= function (f) of (P,E) people and environment.
• Behavior is manifestation of any activity.
• Types of behavior.
1. Proactive. Positive- goal oriented.
2. Reactive. -situation oriented.
What is Organizational Behaviour

 “Organizational behaviour (OB): the study of factors that have

an impact on how people and groups act, think, feel, and
respond to work and organizations, and how organizations
respond to their environments”
Definitions of OB

 OB refers to the behavior of individuals and groups within

organization and the interaction between organizational
members and external environments.

 OB is study of human behaviour; study is about how people

behave in organisations, knowledge about human behaviour
would help in improving organisations effectiveness.
Scope of OB

• It encompasses the study of individual behavior, intrapersonal

behavior and about organization.
• Individual behavior-
• It covers aspects such as personality, attitude, values, perceptions
learning, opinion, motivation, job satisfaction and stress
management
• Interpersonal behavior.
• It covers aspects like group dynamics, team dynamics,
interpersonal conflicts, communication and transactional analysis.
• About organisation.
• It covers such aspects formation, structures, effectiveness and
formal and informal organisation.
Foundations of OB

• Individual Differences
• A Whole Person
• Caused behaviour
• Human Dignity
• Social Systems
• Mutuality of Interest
• Holistic Concept
Individual Behaviour

 Definition:Individual behavior in Organizational Behavior refers to

the ways in which a single person acts, reacts, and interacts
within a workplace setting.
 It encompasses their actions, decisions, attitudes, and
performance, shaped by personal characteristics and the
organizational environment.
 Understanding individual behavior is essential in OB to predict
how employees respond to tasks, leadership, and workplace
dynamics, enabling better management, motivation, and
productivity.
importance of individual

 Individual behavior is vital in Organizational Behavior because it shapes

organizational outcomes through:
 Productivity: Individual actions and efforts directly drive task completion
and performance.
 Collaboration: Personal attitudes and interactions influence effective
teamwork.
 Motivation: Individual needs and drives affect engagement and job
satisfaction.
 Adaptability: How individuals respond to change impacts organizational
flexibility.
 Culture: Personal values and behaviors contribute to the workplace
environment.
 Understanding and managing individual behavior helps organizations
enhance performance, foster positive dynamics, and achieve goals.
Key factors influencing behaviour

 personal (personality, values, attitudes)

 Characteristics inherent to the individual, such as personality, values,
skills, and demographics (e.g., age, gender, education).
 These traits determine how individuals approach tasks and interact
with others. For example, a conscientious personality may lead to
diligent work habits, while strong personal values (e.g., integrity)
influence ethical decision-making.
 Example: An employee with high technical skills may excel in
problem-solving tasks, boosting their performance.
 environmental (culture, leadership, work environment),
 External workplace conditions, including organizational culture,
leadership style, work environment, and resources.
 Impact on Behavior: The organizational setting shapes behavior by
providing opportunities or constraints. A supportive culture
encourages collaboration, while a high-pressure environment may
cause stress or disengagement.
 Example: A participative leadership style can motivate employees to
share ideas, enhancing creativity.
 Psychological (motivation, emotional intelligence, cognitive
biases)
 Definition: Internal mental processes, such as perception, attitudes,
motivation, and emotions, that influence how individuals interpret
and respond to workplace stimuli.
 Impact on Behavior: These factors determine how individuals process
and react to situations. For instance, positive perceptions of a
manager’s feedback can boost motivation, while negative emotions
may reduce productivity.
 Example: An employee motivated by a sense of achievement may
work harder to meet challenging goals.
Fundamental concept of OB
perception

Meaning and concept of perception:

 Perception in organizational behavior
refers to the process by which
individuals interpret and make sense
of information about their
environment, people, or events. It
influences how employees
understand tasks, relationships,
leadership, and workplace events.
Factors
influencing
perception
Perceptual
process
Stage1- Selection

 This is the first step where the brain chooses which sensory
information to focus on. We are constantly bombarded with
stimuli, but we can't pay attention to all of it.
 Selection is often influenced by external stimuli such as bright
light and colours and loud sounds , strong odour, spicy flavours
or painful contact
 Example:
In an office meeting, out of 10 people talking, you pay attention
to your manager because you know their opinion impacts your
performance.
Satge2- Organisation

 Organization, the second stage, is how we

mentally arrange information into meaningful and
digestible pattern.
How we organize:
 Figure-ground (focusing on the main object against
a background)
 Perceptual Grouping (similarity, proximity)
 Closure (filling in missing information)
 These terms were coined by Gestalt psychology
which is a school of psychology that emerged in
early 20th century
 It ephelides that organisms perceive entire pattern
or configuration, not merely individual components
Figure-ground

 Figure-ground is a principle of perception where

we distinguish an object (the figure) from its
background (the ground). Our brain
automatically focuses on the main object and
pushes the rest into the background
 Example 1: Reading Text on a Page
 The black text is the figure.
 The white paper is the ground.
Perceptual grouping

 Perceptual grouping is a concept from Gestalt psychology where our

brain naturally groups elements in our environment to form a
meaningful whole. This helps us make sense of complex scenes quickly
and efficiently.
main rules of perceptual grouping
1. Similarity: We group things that look alike (shape, color, size, etc.)
 Example: In an office, employees wearing same uniforms are perceived
as a team or department.
2. Proximity: Objects that are close to each other are perceived as a
group.
 Example: In a seating arrangement, people sitting close together are
assumed to be from the same group, even if they are strangers.
Closure

 Closure is a principle of perception (from Gestalt psychology) where our

brain fills in missing parts of an incomplete object to perceive a whole
image or idea — even when some information is absent.
 Your mind doesn’t like gaps. So when a shape, word, or image is
incomplete, the brain "closes" the gaps based on past experience or
expectations.
 A manager says,“I don’t need to say it, you know what I mean.”The
employee fills in the missing meaning using context — again, that’s closure.
Satge3- Interpret

 Interpretation is the final stage of the perceptual process,

where the brain assigns meaning to the information it has
selected and organized. This stage is highly subjective,
influenced by individual experiences, values, emotions,
expectations, and cultural background.
 Interpretation is the process by which a person makes sense
of the stimuli by attaching meaning to what they perceive.
 Example:
 1. Workplace Behavior
 If A colleague doesn’t greet you in the morning.
 Interpretation A (Positive): “They must be very busy or in a rush.”
 Interpretation B (Negative): “They’re ignoring me. Maybe they’re angry.”
 2. Tone in Communication
Perception example
social perception (stereotyping)
halo effect

 The Halo Effect occurs when we allow one positive trait (like
appearance, intelligence, or communication skills) to overshadow or
influence our judgment of other unrelated traits.
 The term “halo” comes from the glowing ring often depicted above
the heads of saints in art — symbolizing that if one quality (like
goodness) is present, all other qualities must also be good.
 An employee is very punctual and well-dressed.
➡️The manager assumes they are also hardworking, intelligent, and
a good team player — even without evidence of those traits.
 This is Halo Effect in action.
 An employee is very punctual and well-dressed.
➡️The manager assumes they are also hardworking, intelligent, and
a good team player — even without evidence of those traits.
 This is Halo Effect in action.
personality

 Personality refers to
the set of traits and
behaviours that
characterize an
individual
 Personality refers to
the set of unique
characteristics that
make an individual
different from others.
 Importance Of Personality In OB:Personality plays a crucial role in
organizational behaviour as it affects employee motivation, job
satisfaction, communication patterns, leadership effectiveness,
teamwork, and organizational culture.
 Managers must recognize and leverage different personality
types to:Assign roles appropriatelyBuild balanced teamsEnhance
performance and job satisfaction
Theories of
personality
 Personality theories
help us understand
why people behave
differently in the
same environment —
such as the
workplace.
1. Trait Theory(Big Five Personality Traits (OCEAN))
 People are born with certain personality traits that are stable over
time.
2. Psychoanalytic Theory (Freud):
 Personality is shaped by unconscious motives and early childhood
experiences.
3. Humanistic Theory (Rogers & Maslow)
 Focuses on personal growth, free will, and self-actualization.
4. Social Learning Theory (Bandura)
 People learn personality and behavior by observing others, and
through rewards/punishments.
5. Type Theory (Carl Jung, MBTI)
 Classifies people into types based on traits like thinking/feeling,
introversion/extraversion.
Summary
Theory Focus Area Application in OB

Recruitment,
Trait Theory Stable personality traits
performance, team roles

Unconscious drives, inner Conflict management,

Psychoanalytic Theory
conflict stress understanding

Growth and self- Motivation, leadership,

Humanistic Theory
fulfillment employee wellness

Training, behavior
Social Learning Learning from others
modeling

Team-building, job fit

Type Theory (MBTI) Personality types
analysis
Theories of Personality
Myers-Briggs type indicators
Introversion v/s extraversion
 Introverted are shy, quiet and retiring,
 Extroverted individual are outgoing, sociable individual ,
considerable interaction with others.

Sensitive v/s intuitive.

 Sensing types:- use organized structure to acquire factual &
preferably quantitative details, draw a quick conclusion.
 Intuitive people are .:- non-systematic, subjective.
Thinking v/s feeling:-
 Think(mind):- to use logic & scientific method to make decision.
 Feel(heart):- it focus on personal values & emotions.

Judging v/s perceiving:-

 Judging type want control and prefer their world to be ordered
and structured, to solve problems quickly.
 Perceiving type are more flexible, adapt spontaneously, to keep
their options open
Personality Traits
Authoritarianism:-
 This term developed by Adorno during II w war.
 It is strongly oriented towards conformity of rules and regulations.
 These are likely to prefer autocratic or directive leadership

Locus of control : Rotter's (1954)

 it refers to an individual belief that either events are in one’s
control(internal locus of control or are determined by forces beyond
one’s control(external locus of control).
 Locus of Control refers to an individual's perception about the
underlying predominantly causes of events in his/her life.
 External Locus of Control
 Individual believes that his/her behavior is guided by fate, luck, or
other external circumstances
 Internal Locus of Control
 Individual believes that his/her behavior is guided by his/her
personal decisions and efforts.
Machiavellianism:-
 It refers to an individual capacity to manipulate people.
 Machiavellianism means the degree of manipulating others.

Introversion & extroversion:-

 Extroversion: reflets the persons comfort level with Relationships.
 Extroverts tend to enjoy human interactions and to
be enthusiastic, talkative, confident, and sociable.
 Introversion is "the state of or tendency toward being wholly or
mainly concerned with and interested in one's own mental life“
Achievement orientation:-
 Management which sets challenging goals, assists in training,
emphasizes improvement, and expects the highest levels
of performance.
 higher need to achieve, continually strives to think better, they
feel their success and failure is due to their own actions.

Self esteem:-
 Self-esteem refers to the feeling of like or Dislike of oneself. It is
also related to job satisfaction High esteem people are more
satisfied with their jobs and low esteem people comparatively
lesser satisfied.
 People with high self esteem have high desire for success,
believe in self ability to accepts the challenges, more job
satisfaction.
Self-Monitoring: -
 It refers to an individual’s ability to adjust his/her
behaviour to external and situational factors. Individual
having high self-monitoring can easily adjust themselves
towards external factors. They are highly sensitive and
behave differently in different situations.

Risk Taking: -
 People differ in their willingness to take chances. High
risk taking managers may make more rapid decisions and
uses less information in making their choices whereas low
risk taking managers take time in taking decision and uses
huge information for it.
The ‘Big
Five’
Personality
Traits
(OCEAN)
 Personality makes you who you are—it's why some people thrive
in social settings while others prefer solitude.
 Many contemporary personality psychologists believe that there
are five basic dimensions of personality, often referred to as the
"Big 5" personality traits.
 The Big 5 personality traits, aka the five-factor model, are
extraversion (also often spelled extroversion), agreeableness,
openness, conscientiousness, and neuroticism.
The ‘Big Five’ Personality Traits

Extroversion:-
 Extroversion reflets the persons comfort level with relationships. This
trait includes characteristics such as , sociability, talkativeness,
assertiveness and high amounts of emotional expressiveness.
Agreeableness:-
 It refers to a persons ability to get along with others. Highly
agreeable people value harmony more than they value having their
say. They are cooperative and trusting of others. People with low on
agreeableness focus more on their own needs.
Conscientiousness:-
 It refers to the number of goals that a person focuses on. A highly
conscientious person focuses on relatively few goals at one time.
Emotional stability.
 It focuses on an individual ability to cope with stress. The person
with positive emotional stability tends to be calm, enthusiastic
and secure.
Openness :-
 It addresses one range of interest. Extremely open people are
fascinated by innovation they are willing to listen to new
ideas .People high in this trait also tend to have a broad range of
interests.
Models of OB

 An OB model is essentially
a set of assumptions
about people and
organizations that guide
managerial actions and
influence employee
behavior.
 The SOBC Model is not
typically included as a
core OB model but is a
psychological framework;

Source:Unstop
 Organizational Behaviour (OB) models are theoretical frameworks
that help us understand and predict how individuals, groups, and
structures behave within an organizational setting.
 They are essential tools for managers and leaders to diagnose
workplace issues, design effective interventions, and foster a
productive and healthy work environment.
 Companies can enhance communication, teamwork, and
leadership by applying the OB model, which increases employee
engagement and retention rates.
Understanding models of organizational behaviour allows
organizations to:
 Diagnose problems: Pinpoint the root causes of issues like low
morale, high turnover, or poor productivity.
 Predict behavior: Anticipate how employees might react to new
policies, leadership changes, or technological advancements.
 Design interventions: Create targeted strategies to improve
communication, motivation, leadership, and team dynamics.
 Shape culture: Intentionally build a work environment that
aligns with organizational values and goals.
1. Autocratic Model

The Autocratic Model is the earliest and most traditional OB model. It is

characterized by centralized power and strict control.
 Foundation: Power, Authority
 Managerial Orientation: Authority, Command
 Employee Orientation: Obedience to the boss
 Psychological Result for Employees: Dependence on the boss
 Employee Needs Met: Subsistence (basic needs)
 Performance Result: Minimum performance, often reluctant cooperation
 Example: A factory from the early 20th century where foremen wielded
absolute control, giving directives, and employees had little say,
motivated primarily by the fear of losing their jobs. Decisions are made at
the top with minimal employee input.
2. Custodial Model

The Custodial Model emerged as a response to the harshness of the autocratic

model, focusing on employee welfare.
 Foundation: Economic Resources, Money
 Managerial Orientation: Managerial perks and benefits (e.g., job security,
health insurance)
 Employee Orientation: Security, Benefits
 Psychological Result for Employees: Dependence on the organization
 Employee Needs Met: Security needs
 Performance Result: Passive cooperation, contentment (but not necessarily
strong motivation)
 Example: A large corporation offering comprehensive health benefits,
generous retirement plans, and job security to foster employee loyalty and
reduce turnover, even if it doesn't always inspire high creativity or initiative.
3. Supportive Model

The Supportive Model shifts the focus from material benefits to leadership
and psychological support, recognizing that employees are driven by more
than just money.
 Foundation: Leadership, Support
 Managerial Orientation: Support, Mentorship, Coaching
 Employee Orientation: Job performance, Personal growth
 Psychological Result for Employees: Participation, Sense of Status
 Employee Needs Met: Status and Recognition needs
 Performance Result: Awakened drives, moderate enthusiasm, motivation
 Example: A modern tech company where managers act as facilitators,
encouraging employee input, providing resources for professional
development, and recognizing achievements to boost morale and
engagement.
4. Collegial Model

The Collegial Model emphasizes teamwork and mutual contribution,

building a sense of partnership.
 Foundation: Partnership, Teamwork
 Managerial Orientation: Teamwork, Joint Contribution
 Employee Orientation: Responsible behavior, Self-discipline
 Psychological Result for Employees: Self-discipline, Self-actualization
 Employee Needs Met: Self-actualization needs
 Performance Result: Moderate enthusiasm, high-quality work (from
internal obligation)
 Example: A creative agency or a research and development team where
employees work collaboratively on projects, share ideas, and contribute
equally, with managers seen as joint contributors rather than just bosses.
5. System Model

The System Model is the most contemporary and holistic of the traditional models. It
views the organization as a social system where the manager's role is to foster a sense
of community, trust, and shared meaning.
 Foundation: Trust, Community, Ethics, Integrity, Compassion
 Managerial Orientation: Concern for employees, Nurturing, Compassion
 Employee Orientation: Psychological ownership, Self-motivation, Sense of
community
 Psychological Result for Employees: Self-motivation, Passion, Commitment,
Sense of Belonging
 Employee Needs Met: Growth and fulfillment needs
 Performance Result: Passion, Commitment to organizational goals
 Example: A values-driven non-profit organization or a highly innovative company
like a cutting-edge software firm that prioritizes employee well-being, ethical
practices, and building a strong, inclusive community, leading to high levels of
employee commitment and passion.
SOBC Model

 The SOBC Model is not typically classified as a core OB model but

is a psychological framework used to analyze individual behavior.
 The SOBC model in Organizational Behavior (OB) is a framework
used to understand and analyze human behavior in
organizational settings.
 The acronym SOBC stands for Stimulus-Organism-Behavior-
Consequence, representing a sequential process that explains
how behavior is triggered, processed, and reinforced.
The SOBC model breaks down human behavior in organizations into four
components:
 Stimulus (S): The external or internal trigger that initiates a response.
This could be an event, situation, or condition in the workplace (e.g., a
deadline, feedback, or a new policy).
 Organism (O): The individual’s internal state, including their perceptions,
attitudes, emotions, values, and motivations, which influences how they
interpret the stimulus.
 Behavior (B): The observable action or response of the individual, shaped
by their interpretation of the stimulus. This could be positive (e.g., working
harder) or negative (e.g., disengagement).
 Consequence (C): The outcome or result of the behavior, which can
reinforce, modify, or discourage future behavior. Consequences can be
positive (e.g., rewards) or negative (e.g., reprimands).
Example of the SOBC Model

Scenario: An employee, Sarah, works in a sales team at a retail company.

 Stimulus (S): The company announces a new sales target with a bonus
for employees who exceed it by 20% within a month.
 Organism (O): Sarah perceives the target as challenging but achievable.
She is motivated by the bonus (financial incentive) and values recognition
from her manager. Her positive attitude and ambition drive her to see this
as an opportunity.
 Behavior (B): Sarah increases her effort, spends extra time contacting
clients, and collaborates with colleagues to share strategies, resulting in a
25% increase in her sales.
 Consequence (C): Sarah receives the bonus and public praise from her
manager during a team meeting. This positive reinforcement makes her
feel valued and motivates her to continue performing well in future tasks.
Model Core Assumption Example
McDonald’s:
Employees need Managers enforce
Autocratic
authority and control. strict procedures
during peak hours.

Employees seek
U.S. Postal Service:
Generous benefits
Summary
Table of OB
Custodial
economic security. ensure employee
loyalty.

Supportiv
Employees thrive with Deloitte: Mentorship
support and and feedback
Models and
Examples
e
recognition. empower consultants.
Spotify: Cross-
Employees work best functional squads
Collegial
as team partners. collaborate on
innovative features.
Patagonia:
Organization is an
Sustainable
adaptive,
System practices and
interconnected
wellness programs
system.
align subsystems.
 Organizations may use a combination of these models depending
on their goals, industry, and workforce. For instance, a
manufacturing firm might use the Autocratic Model for assembly
lines but adopt the Supportive Model for R&D teams.
Relationship between OB and the
individual.
 For organization to grow continuously