Notes Module 1
Notes Module 1
Module 1
Organizational behavior (OB) is the study of how people interact within groups in a workplace
setting. It draws on various disciplines, including psychology, sociology, anthropology, and
management, to understand and improve organizational effectiveness.
1. Individual Behavior: This focuses on how individual traits, perceptions, and motivations
affect work performance and interactions. Factors such as personality, learning styles,
and attitudes are considered.
2. Group Dynamics: OB examines how people behave in groups, including team roles,
group cohesion, and communication patterns. Understanding group dynamics helps
organizations foster teamwork and collaboration.
3. Organizational Culture: This encompasses the values, beliefs, and norms that shape
how work is done within an organization. A strong culture can enhance employee
engagement and performance.
4. Leadership: Different leadership styles impact organizational behavior. Effective leaders
influence employee motivation, satisfaction, and performance through their behaviors
and decision-making approaches.
5. Power and Politics: Understanding the dynamics of power and influence within
organizations helps in navigating complex relationships and fostering a positive work
environment.
6. Change Management: Organizations must adapt to change. OB provides insights into
how individuals and groups respond to change, helping leaders manage transitions
effectively.
5. Behavioral Science: It relies on research and empirical data to understand and predict
behavior in organizational settings.
By studying organizational behavior, leaders can create environments that foster collaboration,
innovation, and high performance, ultimately driving organizational success.
Organizational behavior (OB) draws from various disciplines, each contributing unique insights
and perspectives. Here are the key contributing disciplines:
These disciplines together create a comprehensive framework for analyzing and improving
organizational behavior, enabling leaders to foster effective and positive work environments.
O.B. Models
1. Feudal Autocratic
Characteristics:
o Centralized decision-making.
o Strict hierarchy; authority is clearly defined.
o Limited input from subordinates; decisions are often made unilaterally.
Pros:
o Quick decision-making; clear direction.
o Efficient in crisis situations where swift action is needed.
Cons:
o Can lead to low morale; employees may feel undervalued.
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
2. Custodian
Characteristics:
o Focus on stewardship; leaders see themselves as caretakers of resources and
people.
o Emphasizes ethical practices and long-term sustainability.
Pros:
o Builds trust and loyalty among team members.
o Promotes a sense of purpose and belonging.
Cons:
o Decision-making may be slower due to the focus on consensus.
o Potential for complacency if not balanced with performance metrics.
Best Fit: Nonprofits, educational institutions, and organizations with a strong social
mission.
3. Supportive
Characteristics:
o Leaders act as coaches or mentors, providing guidance and resources.
o Encourages open communication and feedback.
Pros:
o Fosters a positive and collaborative environment.
o Increases employee satisfaction and retention.
Cons:
o Risk of being overly accommodating; can lead to indecisiveness.
o May not address performance issues directly.
Best Fit: Creative industries, teams focused on innovation, or organizations emphasizing
employee well-being.
4. Collegial
Characteristics:
o Emphasizes teamwork and shared decision-making.
o Leaders and team members collaborate as equals.
Pros:
o High levels of engagement and commitment from team members.
o Diverse perspectives can lead to more innovative solutions.
Cons:
o Can lead to conflicts if roles and responsibilities are not clearly defined.
o Slower decision-making processes; may struggle with accountability.
Best Fit: Research teams, professional services, and organizations that prioritize
collaboration.
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
5. Human Value
Characteristics:
o Prioritizes individual well-being and development.
o Focuses on empathy, inclusivity, and respect.
Pros:
o Stronger interpersonal relationships; higher employee morale.
o Encourages personal and professional growth.
Cons:
o Potential for neglecting organizational goals in favor of individual needs.
o May struggle to enforce discipline or accountability.
Best Fit: Organizations in sectors such as healthcare, education, or any industry
prioritizing employee engagement.
6. Contingency
Characteristics:
o Emphasizes adaptability; the best approach depends on various situational factors.
o Leaders must assess their environment and tailor their style accordingly.
Pros:
o Flexibility in leadership; can respond effectively to changing circumstances.
o Encourages leaders to develop a range of skills and strategies.
Cons:
o Requires leaders to be highly skilled in situational analysis.
o May lead to inconsistency in leadership style if not managed carefully.
Best Fit: Fast-paced industries, startups, or organizations facing rapid change.
Each of these models has its strengths and weaknesses, and the effectiveness of a particular
approach often depends on the organization's culture, goals, and specific challenges.
Key Features:
o Views organizations as open systems that interact with their environment.
o Emphasizes the interdependence of organizational components (people, tasks,
technology) and external factors (market conditions, regulations).
o Adaptability and feedback loops are critical for organizational survival and
success.
Key Features:
o Forming: Team members get to know each other; roles and responsibilities are
unclear.
o Storming: Conflicts arise as team members assert their personalities; this stage is
critical for growth.
o Norming: The team starts to establish norms and cohesion; roles become clearer.
o Performing: The team functions effectively toward achieving goals; high
collaboration and trust are present.
o Adjourning: The team disbands after achieving its goals; reflection on the team
experience occurs.
These models provide valuable frameworks for understanding the complexities of organizational
behavior, helping managers and leaders develop effective strategies to enhance performance,
foster teamwork, and improve employee satisfaction.
1. Psychological Factors
2. Emotional Influences
Emotional Intelligence (EI): The ability to recognize, understand, and manage one’s
own emotions and the emotions of others is crucial for effective communication and
leadership.
Stress and Coping: Understanding how individuals respond to stress and the coping
mechanisms they employ can provide insight into behavior in high-pressure situations.
3. Social Factors
Group Dynamics: The behavior of individuals is often influenced by group norms, roles,
and dynamics. Concepts like conformity, groupthink, and team cohesion are essential for
understanding social interactions.
Interpersonal Relationships: Trust, communication, and conflict resolution skills play a
significant role in how people work together and build effective teams.
4. Cultural Influences
Organizational Culture: The values, beliefs, and norms within an organization shape
behavior. Understanding the culture can help predict how employees will respond to
various situations.
Diversity and Inclusion: Different backgrounds (cultural, racial, gender) can influence
perspectives and behaviors, making it important to foster an inclusive environment that
values diverse viewpoints.
5. Environmental Factors
Work Environment: Physical surroundings, such as office layout and resources, can
affect behavior and productivity. A supportive and well-designed environment can
enhance job satisfaction.
Leadership Style: The approach taken by leaders—whether autocratic, democratic, or
transformational—can significantly influence employee behavior and motivation.
6. Developmental Aspects
Life Stages: Different stages of life (e.g., young adulthood, midlife, retirement) can
influence priorities, motivations, and behavior in the workplace.
Learning and Experience: Previous experiences and learning shape how individuals
approach tasks, challenges, and relationships in a professional setting.
Cognitive Behavioral Theory: Examines how thoughts influence feelings and behaviors,
emphasizing the importance of mindset in personal and professional settings.
Practical Application
Observe and Listen: Pay attention to verbal and non-verbal cues in interactions.
Encourage Open Communication: Create a safe space for individuals to express their
thoughts and feelings.
Foster Relationships: Build trust and rapport through supportive leadership and team-
building activities.
Adapt Management Approaches: Tailor your approach based on individual and group
needs, considering motivational factors and personalities.
The impact of global and cultural diversity on organizational behavior (OB) is profound and
multifaceted. Understanding and managing this diversity can significantly influence
organizational effectiveness, employee satisfaction, and overall performance. Here are key areas
where global and cultural diversity impacts OB:
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
2. Improved Decision-Making
Broader Insight: Diverse teams are better equipped to consider a wide range of options
and potential outcomes, improving the quality of decisions.
Reduced Groupthink: Cultural diversity can mitigate the tendency toward conformity,
allowing for more critical analysis and discussion of ideas.
Market Insights: A diverse workforce can better understand and cater to diverse
customer bases, enhancing marketing strategies and customer service.
Cultural Sensitivity: Employees with varied cultural backgrounds can provide insights
into cultural nuances, improving communication and relationships with clients from
different backgrounds.
Inclusive Environment: Organizations that embrace diversity often see higher employee
satisfaction, leading to greater engagement and lower turnover rates.
Empowerment: When employees feel valued and included, they are more likely to
contribute fully and commit to their organization.
Adaptive Leadership: Leaders must adapt their styles to effectively manage culturally
diverse teams, incorporating flexibility and cultural competence.
Training and Development: Organizations need to invest in training programs that
promote cultural awareness, sensitivity, and conflict resolution skills.
Virtual Collaboration: As globalization increases, teams often work across borders and
time zones, requiring effective virtual communication and collaboration strategies.
Cultural Adaptability: Team members must learn to adapt to varying cultural norms and
practices, enhancing their ability to work effectively in a global context.
9. Performance Metrics
The impact of global and cultural diversity on organizational behavior is significant. Embracing
and effectively managing this diversity can lead to enhanced creativity, better decision-making,
and improved employee engagement. However, organizations must also address the challenges
that come with diversity to create a truly inclusive and productive work environment. By
investing in cultural competence, adaptive leadership, and inclusive policies, organizations can
harness the benefits of diversity to drive success in an increasingly globalized world.
Ability
1. Definition of Ability
Job Performance: Higher abilities often correlate with better job performance.
Organizations can benefit from hiring individuals with the right mix of cognitive and
emotional abilities for specific roles.
Training and Development: Understanding employees’ abilities can inform training
programs tailored to enhance skills and address gaps.
Team Dynamics: Ability impacts how individuals contribute to teams. Diverse abilities
can enhance problem-solving and creativity within groups.
3. Assessment of Ability
Selection Tests: Organizations often use standardized tests to assess cognitive and
sometimes emotional abilities during the hiring process.
Performance Evaluations: Regular assessments can help identify areas where
employees excel and where they may need development.
4. Enhancing Ability
Values
Values are fundamental beliefs or principles that guide behavior and decision-making in
individuals and organizations. In the context of organizational behavior (OB), understanding
values is crucial as they shape the culture, influence motivation, and impact interpersonal
relationships. Here’s a deeper look at values:
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
1. Definition of Values
Personal Values: These are individual beliefs about what is important in life, guiding
personal behavior and choices. Examples include honesty, integrity, family, and
achievement.
Organizational Values: These are the core principles that an organization stands for,
influencing its culture, practices, and policies. Examples include innovation, customer
focus, teamwork, and sustainability.
Guiding Behavior: Values act as a compass for employee behavior and decision-making,
helping individuals align their actions with organizational goals.
Cultural Foundation: Shared values create a cohesive organizational culture, fostering
unity and a sense of belonging among employees.
Motivation: Values can drive motivation, as individuals are more engaged and
productive when their personal values align with those of the organization.
Brand Identity: Organizational values shape brand perception and can influence
customer loyalty and trust.
3. Types of Values
Core Values: These are the fundamental beliefs that are essential to the organization’s
identity. They are usually few in number and remain consistent over time.
Instrumental Values: These are the means by which individuals achieve their goals,
such as hard work, discipline, and self-control.
Terminal Values: These represent the end goals or desired outcomes, such as happiness,
career success, or social equality.
Alignment: When organizational values are clearly defined and communicated, they can
enhance employee alignment with the organization's mission and objectives.
Cultural Change: Organizations seeking to change their culture must often address
underlying values, ensuring that new values are adopted and integrated into daily
practices.
5. Assessing Values
Surveys and Assessments: Organizations can use tools like values assessments or
employee surveys to gauge the values held by employees and their alignment with
organizational values.
Performance Evaluations: Incorporating values into performance evaluations can help
reinforce the importance of aligning behavior with organizational principles.
Value Conflicts: Discrepancies between personal and organizational values can lead to
dissatisfaction and disengagement.
Diversity of Values: In a diverse workforce, differing values may lead to
misunderstandings or conflicts if not managed effectively.
Values play a critical role in shaping organizational behavior and culture. By clearly defining,
communicating, and promoting values, organizations can create a more cohesive, motivated, and
engaged workforce. Understanding and aligning personal and organizational values is essential
for fostering a positive work environment and achieving organizational success.
Attitudes are evaluative statements or judgments concerning objects, people, or events. They
reflect how we feel about something and can influence our behavior in significant ways.
Understanding how attitudes are formed and the theories that explain them is crucial in
organizational behavior. Here’s a detailed look:
1. Formation of Attitudes
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
a. Direct Experience
Definition: Attitudes formed through firsthand experiences are often more resilient.
When individuals have a strong positive or negative experience, it significantly shapes
their feelings towards similar situations in the future.
Example: If an employee participates in a successful team project, they may develop a
favorable attitude toward teamwork and collaboration.
b. Socialization
Definition: Social influences play a critical role in shaping attitudes. Family, peers,
cultural background, and societal norms contribute to the development of one’s beliefs
and attitudes.
Example: An employee raised in a competitive family might develop a strong
achievement-oriented attitude, valuing performance over collaboration.
c. Learning
d. Cognitive Dissonance
2. Theories of Attitudes
Key Components:
o Dissonance Reduction: Individuals may change their attitudes, beliefs, or
behaviors to reduce dissonance. This can occur by changing one of the conflicting
elements or rationalizing the behavior.
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
Components:
o Attitude toward the behavior: Personal evaluation (e.g., believing that
participating in training is valuable).
o Subjective norms: Perceptions of social pressure (e.g., colleagues encouraging
participation).
o Perceived behavioral control: Belief in one’s ability to perform the behavior
(e.g., confidence in attending training).
Application: This theory is useful for predicting behaviors such as employee engagement
in training programs or commitment to organizational change.
Key Concepts:
o Observation: Individuals learn by observing others and the consequences of their
actions.
o Modeling: When employees see their peers rewarded for certain attitudes or
behaviors, they may adopt similar attitudes.
Example: A new employee may adopt a positive attitude toward company culture by
observing long-term employees who express enthusiasm and commitment.
Functions of Attitudes:
o Utilitarian Function: Attitudes help individuals maximize rewards and minimize
costs (e.g., employees may develop a positive attitude towards a new software
that increases efficiency).
o Ego-Defensive Function: Protects self-esteem; for example, an employee may
justify subpar performance by blaming external factors.
o Value-Expressive Function: Reflects one’s values and self-concept (e.g., an
employee may embrace sustainability initiatives because they value
environmental conservation).
o Knowledge Function: Helps individuals make sense of their experiences and the
world around them (e.g., an employee may develop an attitude towards remote
work based on their understanding of its benefits).
Behavioral Component: This refers to the intention to act in a certain way (e.g.,
volunteering for new assignments).
Cognitive Component: This includes beliefs or thoughts about the object (e.g., believing
that teamwork leads to better outcomes).
3. Changing Attitudes
Persuasive Communication: Tailored messages that address both the emotional and
rational aspects of attitudes can be effective. Using credible sources and appealing to
values can enhance persuasion.
Positive Experiences: Creating opportunities for positive experiences can change
negative attitudes. For example, team-building activities can improve attitudes toward
collaboration.
Social Influence: Encouraging positive role models within the organization can shift
attitudes through observation and imitation.
Feedback Mechanisms: Providing feedback on attitudes and behaviors helps individuals
recognize areas for improvement and can foster attitude change.
Attitudes are a critical aspect of organizational behavior, influencing how individuals interact,
perform, and perceive their work environment. Understanding the formation and theories of
attitudes allows organizations to develop effective strategies to enhance employee engagement,
foster a positive workplace culture, and facilitate change. By addressing attitudes, organizations
can create a more motivated and cohesive workforce, ultimately driving better performance and
satisfaction.
Personality refers to the individual differences in characteristic patterns of thinking, feeling, and
behaving. In the context of organizational behavior, understanding personality is crucial as it
influences employee behavior, interactions, and performance. Here’s a detailed overview of the
determinants and traits of personality:
1. Determinants of Personality
a. Genetic Factors
b. Environmental Factors
Family Influence: Parenting styles and family dynamics can significantly shape
personality. For instance, supportive and nurturing environments may lead to higher self-
esteem and social competence.
Culture: Cultural norms and values impact personality traits. For example, collectivist
cultures may promote traits like cooperation and conformity, while individualistic
cultures may encourage independence and assertiveness.
Life Experiences: Significant life events, such as trauma or success, can alter personality
traits over time.
c. Situational Influences
Contextual Factors: Different situations may elicit different behaviors. For example, an
individual might display leadership qualities in a work setting but be more reserved in
social situations.
Peer Influence: Friends and colleagues can impact personality development through
social interactions and shared experiences.
2. Traits of Personality
Personality traits are stable characteristics that influence behavior. Various models describe these
traits:
This widely accepted model categorizes personality into five broad dimensions:
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
1. Openness to Experience
o Definition: Reflects creativity, curiosity, and a willingness to try new things.
o High Scorers: Open-minded, imaginative, and adventurous.
o Low Scorers: Conventional, resistant to change, and prefer routine.
2. Conscientiousness
o Definition: Indicates a person’s level of organization, dependability, and work
ethic.
o High Scorers: Diligent, disciplined, and goal-oriented.
o Low Scorers: Impulsive, disorganized, and less reliable.
3. Extraversion
o Definition: Describes sociability, assertiveness, and enthusiasm.
o High Scorers: Outgoing, energetic, and enjoy social interactions.
o Low Scorers: Introverted, reserved, and prefer solitary activities.
4. Agreeableness
o Definition: Reflects interpersonal orientation and the tendency to be
compassionate and cooperative.
o High Scorers: Trusting, empathetic, and friendly.
o Low Scorers: Competitive, critical, and less cooperative.
5. Neuroticism
o Definition: Indicates emotional stability and resilience.
o High Scorers: Anxious, moody, and prone to negative emotions.
o Low Scorers: Calm, emotionally stable, and less prone to stress.
The Myers-Briggs Type Indicator (MBTI) is a popular personality assessment tool designed to
help individuals understand their personality preferences and how these preferences influence
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
their interactions with others. Developed by Isabel Briggs Myers and her mother, Katharine
Cook Briggs, the MBTI is based on Carl Jung's theories of psychological types.
The MBTI identifies personality types based on four dichotomies, each representing a spectrum
of preferences:
2. 16 Personality Types
The combinations of the four dichotomies result in 16 distinct personality types. Each type is
represented by a four-letter code. For example:
Each type has unique characteristics, strengths, and weaknesses. Here are some examples:
INTJ (The Architect): Analytical, strategic, and independent thinkers who enjoy solving
complex problems.
ESFJ (The Provider): Sociable, caring, and organized individuals who value harmony
and community.
INFP (The Mediator): Idealistic, empathetic, and open-minded, often driven by their
values and a desire for authenticity.
ESTP (The Entrepreneur): Energetic, action-oriented, and spontaneous, enjoying new
experiences and challenges.
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
Criticisms of MBTI
Scientific Validity: Critics argue that the MBTI lacks empirical support and reliability
compared to other personality assessments, such as the Big Five.
Over-Simplification: The binary nature of the dichotomies can oversimplify the
complexity of human personality, leading to pigeonholing.
Static Nature: Some believe that personality is more fluid than the MBTI suggests, with
preferences changing over time or depending on context.
The MBTI is a widely used tool for understanding personality preferences and enhancing
personal and professional development. While it offers valuable insights into individual
differences and promotes self-awareness, it’s essential to approach its use with an understanding
of its limitations and consider it as one of many tools for exploring personality.
c. HEXACO Model
An extension of the Big Five, the HEXACO model includes six dimensions:
1. Honesty-Humility
2. Emotionality
3. extraversion
4. Agreeableness
5. Conscientiousness
6. Openness to Experience
Job Performance: Traits like conscientiousness are often linked to higher job
performance and productivity.
Leadership Styles: Different personality traits influence leadership styles and
effectiveness.
Team Dynamics: Understanding personality traits can improve team collaboration by
promoting diverse perspectives and strengths.
Program: Bachelor of Business Administration
Course Name: Organization Behaviour and Principles of Management, Code: NBBA5201
Employee Satisfaction: Compatibility between personality traits and job roles can lead
to higher job satisfaction and lower turnover rates.