UNIT – 3

Organizational Behaviour

Organizational Behaviour (OB) is integral to the management process because it

explains how individuals and groups behave, interact, and impact the workplace. It
guides managers to optimize human potential and align it with organizational goals.

1. Organizational Introduction & Definition

• Introduction:
• OB examines how individuals behave within organizations and how
organizations influence individual and group behavior. It bridges the gap
between human psychology and organizational goals.
• Definition:
OB is the systematic study and application of knowledge about how people—
individually and in groups—act within organizations. It emphasizes interpersonal
relationships, communication, and decision-making processes.
• Management Connection:
Managers rely on OB principles to create conducive environments that foster
motivation, collaboration, and productivity.

2. Fundamental Principles of OB

• Individual Differences:
Every person is unique, with varying abilities, experiences, and motivations. Managers
must recognize and respect these differences, creating tailored strategies for effective
performance.
• Whole-Person Perspective:
Employees are not just workers but individuals with emotional, physical, and
psychological needs. Acknowledging this helps managers support overall well-being,
leading to higher satisfaction and lower turnover.
• Motivation and Behavior:
OB highlights the importance of motivation in driving employee behavior. Theories like
Maslow's hierarchy of needs and Herzberg’s two-factor theory guide managers in
designing motivational strategies.
• Systems Perspective:
Organizations are systems where every action has ripple effects. Managers must
understand how individual behavior impacts the entire organization to implement
effective changes.

3. Contributing Disciplines to OB

OB is multidisciplinary, benefiting from the integration of various fields:

• Psychology:
Explores individual behavior, learning, motivation, and personality. For example,
understanding emotional intelligence helps managers lead effectively.
• Sociology:
Focuses on group dynamics, team behavior, and organizational culture, helping
managers create cohesive teams.
• Anthropology:
Provides insights into cultural influences on behavior, enabling managers to navigate
globalization and diverse workforces.
• Economics:
Aids in understanding incentives, resource allocation, and decision-making processes
that influence employee behavior.

4. Challenges and Opportunities in OB

Modern workplaces present both challenges and opportunities for OB application:

• Workforce Diversity:
Managers must embrace diversity to foster innovation and inclusivity while addressing
potential conflicts.
• Technological Change:
The rise of automation and AI requires managers to adapt, reskill employees, and
manage remote teams effectively.
• Globalization:
Expanding operations globally introduces cultural complexities that OB can help
navigate.
• Ethics and Corporate Social Responsibility (CSR):
Modern managers face pressure to maintain ethical standards and contribute to
societal goals, which OB helps integrate into business practices.
5. Evolution and OB in India

• Pre-Liberalization Era:
Indian organizations were hierarchical and followed a control-oriented approach,
focusing less on employee needs and more on compliance.
• Post-Liberalization Era (1991 Onwards):
Economic reforms brought globalization, leading to a shift towards participative
management, employee engagement, and innovation.
• Modern Trends:
Indian organizations now blend traditional values (emphasis on relationships and
ethics) with global practices like diversity, inclusion, and agility.

Individual Behaviour

Individual behavior focuses on how personal attributes, perceptions, and abilities

influence actions in an organization.

1. Foundations of Individual Behaviour

• Biographical Characteristics:
Factors like age, gender, marital status, and tenure affect work attitudes and
performance. For instance, younger employees may adapt to technology faster, while
older employees bring stability and experience.
• Personality and Values:
Personality traits, such as extroversion or conscientiousness, influence work behavior.
Similarly, values guide ethical decision-making and shape workplace culture.
• Learning and Perception:
Learning affects how employees acquire new skills, while perception determines how
they interpret situations and react to organizational policies.

2. Ability

Ability refers to the inherent or acquired capacity to perform tasks effectively. Managers
must evaluate and align abilities with job requirements.

• Intellectual Abilities:
These include mental capacities such as reasoning, analytical thinking, verbal and
numerical skills, which are critical for roles requiring decision-making or problem-
solving.
 • Physical Abilities:
Physical capabilities like strength, coordination, and stamina are essential for jobs
involving manual labor or physical endurance.
• Role of Disabilities:
Inclusivity is a key focus of modern management. Organizations aim to integrate
individuals with disabilities, ensuring their abilities are leveraged while providing
necessary accommodations.

UNIT – 4

Personality

Meaning of Personality

• Definition: Personality refers to the unique and consistent set of psychological

traits, emotional patterns, thoughts, and behaviors that influence how a person
responds to their environment.
• In OB, personality affects how individuals interact with others, respond to work
situations, and perform their roles.
• Example: An extroverted employee may excel in teamwork, while an introverted
employee may prefer tasks that involve independent work.

Formation of Personality

Personality is shaped by various factors over time, including:

1. Heredity:
a. Traits inherited from biological parents, such as physical appearance,
temperament, and intelligence, form the genetic basis of personality.
b. Example: A naturally calm temperament might influence leadership style.
2. Environment:
a. Factors such as culture, family upbringing, education, and social
interactions play a significant role in shaping personality.
b. Example: A supportive family environment might foster confidence.
3. Situational Factors:
a. Specific circumstances or events can temporarily influence behavior,
although core personality traits remain consistent.
 b. Example: Stressful situations might cause even a calm person to act
impatiently.

Determinants of Personality

The major factors influencing personality are:

1. Biological Factors:
a. Heredity, brain structure, and physical characteristics.
2. Cultural Factors:
a. Norms, values, and beliefs instilled by society.
3. Family and Socialization:
a. Early experiences, parenting style, and peer interactions.
4. Situational Factors:
a. The context and environment in which a person operates.

Traits of Personality

Personality traits are enduring characteristics that describe an individual’s behavior.

Common traits include:

• Assertiveness: Confidence in expressing opinions.

• Adaptability: Flexibility in new situations.
• Optimism: Tendency to see positive outcomes.
• Resilience: Ability to recover from setbacks.

Big Five Personality Traits

The Big Five Model is a widely accepted framework for understanding personality traits:

1. Openness to Experience: Creativity, curiosity, and openness to new ideas.

a. High: Innovative and adaptable.
b. Low: Conventional and resistant to change.
2. Conscientiousness: Organization, responsibility, and dependability.
a. High: Detail-oriented and disciplined.
b. Low: Impulsive and careless.
3. Extraversion: Sociability, energy, and assertiveness.
a. High: Outgoing and enthusiastic.
b. Low: Reserved and introspective.
 4. Agreeableness: Cooperative, empathetic, and friendly behavior.
a. High: Team player and conflict-averse.
b. Low: Competitive and critical.
5. Neuroticism: Emotional stability and resilience to stress.
a. High: Anxious and moody.
b. Low: Calm and composed.

Myers-Briggs Type Indicator (MBTI)

The MBTI categorizes personality into 16 types based on preferences in four

dimensions:

1. Extraversion (E) vs. Introversion (I): Interaction with the external world.
2. Sensing (S) vs. Intuition (N): Approach to gathering information.
3. Thinking (T) vs. Feeling (F): Decision-making style.
4. Judging (J) vs. Perceiving (P): Preference for structure vs. flexibility.

Example in OB:

• A Judging personality might excel in roles requiring planning and deadlines, while
a Perceiving personality might perform better in creative roles.

Personality Attributes Influencing OB

Key personality attributes that impact workplace behavior include:

1. Locus of Control:
a. Internal: Belief in controlling one’s destiny.
b. External: Belief in external factors controlling outcomes.
2. Self-Esteem:
a. High self-esteem boosts confidence and performance, while low self-
esteem may lead to insecurity.
3. Self-Monitoring:
a. High self-monitors adapt well to changing social environments.
4. Proactive Personality:
a. Proactive individuals take initiative and adapt well to change.
5. Risk-Taking:
a. Impacts decision-making and innovation in OB contexts.
Attitude

Meaning of Attitude

• Definition: An attitude is a learned predisposition to respond in a consistently

favorable or unfavorable manner toward a particular object, person, or situation.
• In OB, attitudes influence employee satisfaction, performance, and
engagement.
• Example: A positive attitude toward teamwork promotes collaboration, while a
negative attitude may cause conflict.

Formation of Attitudes

Attitudes are shaped by:

1. Learning:
a. Direct experiences and observation of others’ behavior.
b. Example: An employee’s positive experience with a supportive manager
may shape a favorable attitude toward leadership.
2. Socialization:
a. Family, peer groups, and cultural influences play a role.
b. Example: A culture emphasizing hard work may foster a strong work
ethic.
3. Emotional Reactions:
a. Positive or negative emotional experiences influence attitudes.
b. Example: Recognition at work fosters a positive attitude.

Components of Attitudes

Attitudes consist of three interrelated components:

1. Cognitive (Beliefs):
a. Represents the individual’s knowledge or belief about a situation.
b. Example: "I believe hard work leads to success."
2. Affective (Feelings):
a. Represents emotions or feelings toward a situation or object.
b. Example: "I feel happy working in this organization."
3. Behavioral (Actions):
a. Represents the way an individual behaves based on their attitude.
 b. Example: "I will stay late to complete my work because I value this job."

Relation Between Attitude and Behavior

1. Consistency:
a. Generally, attitudes guide behavior, but behavior may also influence
attitudes.
b. Example: A positive attitude toward teamwork leads to active
participation in group tasks.
2. Cognitive Dissonance:
a. When behavior conflicts with attitudes, it creates discomfort, motivating
individuals to align the two.
b. Example: An employee who dislikes working overtime might develop a
positive attitude if the extra hours result in rewards.
3. Situational Factors:
a. Situations can moderate the relationship between attitudes and
behavior.
b. Example: Even if an employee dislikes a task, they may complete it due to
a manager’s authority.

Importance of Personality and Attitude in OB

1. Predicting Behavior:

Understanding personality and attitudes helps managers predict how individuals will
respond to situations, enabling better decision-making.

2. Motivation and Performance:

A positive attitude and the right personality traits enhance motivation and job
performance.

3. Leadership and Team Dynamics:

Effective leaders leverage personality insights to build cohesive teams and foster
positive attitudes.

4. Employee Retention:

Employees with positive attitudes and aligned personalities are more likely to stay
engaged and loyal.
 UNIT – 5

Motivation

Meaning of Motivation

• Definition: Motivation is the internal drive or external stimulus that energizes,

directs, and sustains behavior toward achieving a goal.
• In OB: Motivation explains why employees act in specific ways and helps
managers design strategies to enhance performance.
• Importance:
o Increases productivity.
o Promotes job satisfaction.
o Helps in achieving organizational goals.

Theories of Motivation

1. Needs Theory (Maslow’s Hierarchy of Needs)

Proposed by Abraham Maslow, this theory outlines five levels of human needs arranged
in a hierarchy:

1. Physiological Needs:
a. Basic survival needs such as food, water, and shelter.
b. Workplace Example: Fair wages and comfortable working conditions.
2. Safety Needs:
a. Protection from physical and financial harm.
b. Workplace Example: Job security, health benefits, and a safe work
environment.
3. Social Needs:
a. The need for relationships, belongingness, and acceptance.
b. Workplace Example: Team bonding activities and supportive colleagues.
4. Esteem Needs:
a. The need for respect, recognition, and self-esteem.
b. Workplace Example: Promotions, awards, and appreciation.
5. Self-Actualization:
 a. The need for personal growth and fulfilling one’s potential.
b. Workplace Example: Opportunities for creativity, innovation, and
leadership roles.

Criticism: Needs do not always follow a strict hierarchy and may vary across
individuals.

2. Two-Factor Theory (Herzberg’s Motivation-Hygiene Theory)

Developed by Frederick Herzberg, this theory divides workplace factors into:

1. Hygiene Factors (Extrinsic):

a. These do not motivate employees directly but prevent dissatisfaction.
b. Examples: Salary, work conditions, job security, company policies.
2. Motivators (Intrinsic):
a. These factors lead to higher satisfaction and motivation.
b. Examples: Recognition, challenging work, responsibility, and
opportunities for growth.

Implications for Managers: Focus on eliminating dissatisfaction through hygiene

factors and improving motivation through intrinsic rewards.

3. Theory X and Theory Y (Douglas McGregor)

This theory contrasts two opposing views of employee behavior:

1. Theory X (Authoritarian View):

a. Assumes employees are inherently lazy, lack ambition, and need close
supervision.
b. Management Style: Autocratic, with strict controls.
c. Drawbacks: Can lead to low morale and creativity.
2. Theory Y (Participative View):
a. Assumes employees are self-motivated, enjoy responsibility, and are
capable of innovation.
b. Management Style: Democratic, encouraging participation and
collaboration.
c. Benefits: Fosters engagement, innovation, and trust.
Application in OB: Modern organizations increasingly adopt Theory Y principles to
create a more empowered workforce.

Leadership

Meaning of Leadership

• Definition: Leadership is the ability to influence, inspire, and guide individuals or

teams toward achieving organizational goals.
• In OB: Leadership plays a critical role in shaping team dynamics, driving
motivation, and ensuring goal alignment.
• Key Elements:
o Influence: Leaders guide behavior without coercion.
o Vision: Leaders articulate a clear and inspiring vision.
o Execution: Leaders ensure goals are achieved through effective
strategies.

Styles of Leadership

Leadership styles describe how a leader manages and interacts with their team.
Common styles include:

1. Autocratic Leadership:

• Leader makes decisions unilaterally, with little input from subordinates.

• Advantages: Quick decision-making, clarity of authority.
• Disadvantages: Low morale, limited creativity.

2. Democratic Leadership:

• Leader involves team members in decision-making.

• Advantages: Encourages participation, improves morale.
• Disadvantages: Slower decision-making.

3. Laissez-Faire Leadership:

• Leader provides minimal guidance, allowing employees to make decisions.

• Advantages: Encourages innovation and autonomy.
 • Disadvantages: Risk of chaos and lack of accountability.

4. Transformational Leadership:

• Leader inspires and motivates employees to exceed expectations through a

compelling vision.
• Advantages: High morale, increased engagement.
• Disadvantages: Requires a highly capable leader.

5. Transactional Leadership:

• Leader focuses on structured tasks, rewards, and punishments.

• Advantages: Clear expectations, goal-oriented.
• Disadvantages: May stifle creativity and intrinsic motivation.

Leadership Theories

1. Trait Theory

• Suggests that effective leaders possess specific inherent traits.

• Common Traits: Confidence, intelligence, integrity, decisiveness.
• Criticism: Fails to explain how people without natural traits can become
effective leaders.

2. Behavioral Theory

• Focuses on how leaders act rather than who they are.

• Leadership behaviors are classified as:
o Task-Oriented: Focused on achieving goals.
o People-Oriented: Focused on building relationships and team cohesion.

3. Contingency Theory

• Suggests that effective leadership depends on the situation and the leader’s
adaptability.
• Example: Fiedler’s Contingency Model emphasizes the match between the
leader’s style and the favorability of the situation.
4. Transformational Leadership Theory

• Emphasizes inspiring and empowering followers to achieve extraordinary

outcomes.

Managerial Grid (Blake and Mouton’s Leadership Grid)

The Managerial Grid is a tool to evaluate leadership styles based on two dimensions:

1. Concern for People: Focus on employee well-being and interpersonal

relationships.
2. Concern for Production: Focus on achieving organizational goals and results.

Five Leadership Styles:

1. Impoverished Management (Low People, Low Production):

a. Minimal effort, leading to ineffective leadership.
2. Country Club Management (High People, Low Production):
a. Focuses on employee satisfaction but neglects productivity.
3. Authority-Compliance Management (Low People, High Production):
a. Emphasizes task completion, often at the expense of employee morale.
4. Middle-of-the-Road Management (Moderate People, Moderate Production):
a. Balances people and production but lacks excellence in either.
5. Team Management (High People, High Production):
a. Ideal style that promotes both productivity and employee satisfaction.

Importance of Leadership in OB

1. Drives Organizational Goals:

a. Aligns individual and group efforts with the organization’s vision.
2. Builds Team Cohesion:
a. Promotes collaboration and reduces conflicts.
3. Enhances Employee Motivation:
a. Inspires and energizes employees through clear communication and
recognition.
4. Adapts to Change:
a. Effective leaders guide teams through transitions and challenges.