ORGANISATIONAL BEHAVIOUR

UNIT – I
FOCUS AND PURPOSE OF ORGANISATIONAL BEHAVIOUR
MEANING
Organisational behaviour is the study and application of knowledge about how
people – as individuals and as groups – act within organization.

DEFINITION
According to Fred Luthans, “Organisational behaviour is to understand, predict
and controlling human behaviour at work”.
According to Stephen Robbins, “Organisational behaviour is a field a study that
investigates the impact that individuals, groups and structure have on behaviour in
organizations for the purpose of applying such knowledge towards improving an
organisation’s effectiveness”.

NEED AND IMPORTANCE

Need and Importance of
Organisational Behaviour

Understanding of Self and Others Motivation of Human Resources

Improvement of Quality and Effective communication

Productivity

Effective Organisational Climate Good Human Relations

Introduction of Change in the Organisation

NATURE OF ORGANISATIONAL BEHAVIOUR

 Integral part of Management
 Inter-Disciplinary Approach
 Field of Study
 Analysis of Behaviour
 Goal-Oriented
 Human Tool
 Fulfilment of Employees’ needs
 Oriented Towards Organisational objectives
SCOPE OF ORGANISATIONAL BEHAVIOUR
 Skill Development
 Personal growth through insight into human behavior
 Enhancement of Organisational and individual effectiveness
 Sharpening and refining of common sense.
EVOLUTION OF ORGANISATIONAL BEHAVIOUR
Industrial Revolution

Scientific Management

Human Relations Movement

1. Great Depression
2. Labour Movement
3. Hawthorne Studies

Organisational Behaviour
EVOLUTION OF OB
The historical development of organisational behaviour includes various phases
which are as follows:
Industrial Revolution

Scientific Management

Human Relations Movement

1. Great Depression
2. Labour Movement
3. Hawthrone Strudies

Organisational Behaviour

1. Industrial Revolution:
Industrial revolution brought about materialism, discipline, monotony, boredom,
job displacement, impersonality, work interdependence, and related behavioural
phenomena. Robert Owen the father of personnel management, Andrew Ure, J.N.Tata
were recognise the importance of people at work.
2. Scientific Management:
The Scientific Management school is primarily attributed to the ideas and works
of Fredrick W.Taylor who is known as “Father of scientific Management”. Workers
should be scientifically selected with right attitudes for the job and ability and then
properly trained to perform the work.
3. Human Relations Movement:
In this people were to be treated as human beings and not as machines, listening
to their needs and problems and involving them in decision-making in matters relating
to workers conditions.
Human Relation Assumptions:
1. Organisations are social system
2. They are motivated by many needs
3. Team work is essential for co-operation
4. Leadership should be modified
5. Job satisfaction will lead to higher job
Contribution to Human relations:
1. Great Depression: The consequence of the depression were wide spread
unemployment, decline of purchasing power, collapse of markets, and lowering
of the standard of living of people.
2. Labour movement: Labour formed strong unions and this had the desired effect
on management.
3. Hawthorne studies: Dominate the academic discussion on historical
development.
4. Organisational Behaviour:
Human relations became more mature & research based, the new term
that arose in describe it was ‘Organisational Behaviour’. The positive Organisational
Behaviour emphasises confidence, hope, optimism, and other positive attributes at
work.
FUNDAMENTAL CONCEPTS OF OB

Individual
Difference

Motivation to
employees Organisation is
a Social System

Perception

Whole person Nature of OB Nature of Mutuality of

People Organisation Interest
Caused
Behaviour

Desire for
involvement Ethics
Human Dignity

ORGANISATIONAL BEHAVIOUR PROCESSES

1. Individual Processes:
Individual behaviour is the foundation of organisational performance.
Understanding individual behaviour, therefore is crucial for effective management.
Each person is a physiological system composed of a number of sub-systems – digestive,
nervous, circulatory and reproductive as well as attitudes, perception, learning
capabilities, personality, needs, feelings, values
2. Interpersonal and Team processes:
People generally do not choose to live or work alone. Almost all our time
is spent interacting with others. Team processes is must. Team members must be
skilful in eliminating barriers to achieving their goals, solving problems, maintaining
productive interaction among team members and overcoming obstacles to team
effectiveness.
3. Organisational processes:
Individual enter organisations to work, earn money and pursue career
goals. They do so through the organisation’s culture which is the set of shared
assumptions and understanding about how things really work, ie., which policies,
practices, and norms are important in the organisation.
4. Change Processes
The management of change involves adapting an organisation to the
demands of the environment and modifying the actual behaviour of employees. Six
basic strategies for achieving change are:
1. People Approaches, 2. Cultural Approaches, 3. Technological approaches
4. Design Approaches, 5. Task approaches 6. Strategy Approaches.

DISCIPLINES CONTRIBUTING TO OB
1. Psychology 2. Medicine
3. Sociology 4. Social Psychology
5. Anthropology 6. Political Science
7. Engineering 8. Economics

ORGANISATIONAL BEHAVIOUR MODELS

1. Autocratic Model
2. Custodial Model
3. Supportive Model
 4. Collegial Model

 Autocratic Model:
Might is bright right is the motto of the theory. It depends upon power’
Employees are to follow their boss otherwise they are penalised. Main features
a. Only Management decides right or wrong
b. Obedient orientation and employees
c. Useful approach
Merits Demerits
Authority is delegated by right of There is no interaction between
command over people to whom is apples employee and the manager
Supervision is very close to obtain the In this model the communication is one
required performance way
Employees are motivated by Human cost is very high
physiological needs

 Custodial Model:
To develop better employee relationsips so that insecurity and frustration
Could be dispelled(dismiss). Main features
a. Employee dependence on the organisation.
b. Emphasises rewards
c. Promote employee satisfaction
Merits Demerits
It is based on the economic resource of Unwillingness to do the right
the organisation rather than on the performance
personal dependence on the boss.
Managerial orientation moved towards This model only emphasise on material
to pay for employees benefits reward and dependence on organisation

 Supportive Model:
Leadership motivates the people to work and not the power of money .
Main features:
a. Supports employee job performance
b. Management’s lifestyle reflects support
c. Creates sense of participation
d. Limited application

Merits Demerits
It helps the employees to grow It is less developed because employee
need structure are often at lower level
and their social condition are different
Helps in solving the problems of
employees in achieving work
The employees feel participation and
work involvement

 Collegial Model:
The term relates to a body of persons having a common purpose. It is
based on the mutual contribution by employer and employees. Main features
a. Creates Favourable working climate
b. Foster teamwork
c. Fulfilment of employees
Merits Demerits
Employees feel responsible and give It is used less because the rigid work
 quality work to the organisation environment made it difficult to develop
There is considerable job freedom
More useful for unprogrammed work

CHALLENGES AND OPPORTUNITIES FOR ORGANISATION BEHAVIOUR

 Globalisation of business
 Workforce diversity
 Changed Employee Expectations
 Increasing Quality consciousness
 Managing change
 Ethics and social responsibility

LIMITATIONS OF OB
 Behavioural bias:
Overemphasising the employee satisfaction
Overemphasising the production output
 The Law of Diminishing Returns
Too much OB emphasis produce negative results
Optimum desirable practice
Does not apply to every human situation
A system concept
 Unethical manipulation of people
Misuse of OB knowledge and techniques
Ignores ethical relationship
 UNIT – III
GROUP BEHAVIOUR
ORGANISATIONAL STRUCTURE
Organisation structure refers to the hierarchical arrangement of various
positions in an enterprise. Organisational structure defines the formal relationship into
managerial hierarchy.
According to Koontz and Donnel, “Organisation structure is the establishments of
authority relationships with provision for coordination between them, both vertically
and horizontally in the enterprise structure”.

TYPES OF ORGANISATIONAL STRUCTURE

Types of Organisational Structure

Line Organisation

Line and Staff Organisation

Functional Organisation

Divisional Organisation

Project Organisation

Matrix Organisation
1. Line Organisation / Military Organisation:
A line organisation is one in which all managers have direct authority
over their respective subordinates, through the chain of command. Authority
flows directly from top to bottom through various managerial positions.

Chief Executive

Finance Manager Marketing Manager Production Manager

Accounts Finance Consumer Industrial Plant Plant

Executive Executive Products Products Manager Manager

Area Sales Area Sales Foreman Foreman

Manager Manager

2. Line and Staff Organisation

Line and staff organisation is a modification of line organisation and it is
More complex than line organisation. The power of command always remains with the
line executives and staff supervisors guide, advice and council the line executives.
Personal Secretary to the Managing Director is a staff official.
Specified Staff Positions in an Organisation include:
1. Assistant to Chief Executive
2. Quality Control Manager
3. Personnel Manger, and
4. Manager [Marketing Research]
 Chief Executive

Assistant to Chief Executive

Personnel R&D Manufacturing Marketing

Manager Manager Manager Manager

Quality Control Plant Plant

Manager Manager Manager

Industrial Training Employees Manager Manager Manager

Relations Manager Service (Industrial (Consumer (Marketing
Manager Manager Product) Product) Research)
3. Functional Organisation
It is a limited form of line authority given to functional experts over
certain specialised activities under the normal supervision of managers belonging to
other departments.

Chief Executive

Personnel R&D Manufacturing Marketing

Manager Manager Manager Manager

Quality Control Plant Plant

Manager Manager Manager

Industrial Training
Relations Manager Foreman Foreman Foreman
Manager
Line
Staff
Functional
4. Divisional Structure
Divisional structure, also called profit decentralisation is built around
business units. In this form, the organisation is divided into several fairly autonomous
units.
Managing Director

Corporate Legal Research and Finance

Planning Services Development

Consumer Product Chemical Electronics

Division Division Division

Manufacturing Manufacturing Manufacturing

Marketing Marketing Marketing
Accounting Accounting Accounting
5. Project Organisation
A project organisation is composed of a core of functional departments,
through its main units are specific programmes or projects.
 General Manager

Project A Project B

Quality Engineering R&D Contract Purchasing

Admin

Quality Engineering R&D Contract Purchasing

Admin

Manufacturing

6. Matrix Organisation
Matrix design is one of the latest types of organisational designs which
have been developed to establish flexible structure to achieve a series of project
objectives.
General Manager

Production Marketing Finance Personnel

Project Prod. Mktg. Fin. Pers.

A

Project Prod. Mktg. Fin. Pers.

B

Project Prod. Mktg. Fin. Pers.

C

Project Prod. Mktg. Fin. Pers.

D

FORMATION OF ORGANISATIONAL STRUCTURE

 Determination of Organisational Goals and Identification of Related Activities
 Grouping of Activities
 Delegation of Authority

IMPORTANCE OF ORGANISATIONAL STRUCTURE

 Coordination
 Source of support and security
 Chain of Command
 Decision-making
 Efficiency

DIFFERENCES BETWEEN FORMAL AND INFORMAL ORGANISATION

Basis of Formal Organisation Informal Organisation

Distinction
Meaning It is an official structure of activities, It is a system of social relations
roles and authority relationship which emerges on its own in a
 executed by management for natural manner within the formal
achieving organisational goals organisation to meet the social
and cultural needs of the
members of the organisation
Formation It is created deliberately It emerges on its own as a result
of social interactions among
people
Purpose It is created to achieve organisational It emerges to meet the social and
goals cultural needs of the members of
the organisation
Rigidity versus It is more rigid It is more flexibility
Flexibility
Structure It has a clear and well-defined It does not have a clear and well
structure which is pyramid shaped defined structure
Use of It makes more use of formal It makes more use of informal
Communication communication communication

GROUPS IN ORGANISATIONS
A group consists of two or more persons who interact with each other,
consciously for the achievement of certain common objectives. Groups can make a
manager’s job easier because by forming a group, he need not explain the task to each
and every individual.
According to Stephen Robbins, “A group may be defined as two or more
individuals, interacting and interdependent, who have come together to achieve
particular objectives”.

NATURE
o Two or more persons
o Collective Identity
o Interaction
o Shared Goal Interest

TYPES OF GROUPS
Types of Groups

1. Primary and secondary

2. Membership & Reference
3. In and Out
4. Interest and Friendship
5. Formal and Informal
6. Temporary and Permanent
7. Nominal and Non-performing
STAGES OF GROUP DEVELOPMENT
 Forming
 Storming
 Norming
 Performing
 Adjourning[delay]
THEORIES OF GROUPS
Theories of groups

Propinquity Homan’s Interaction Balance Exchange

1. Propinquity: The term propinquity means nearness. The theory of propinquity

states that individuals affiliate with one another because of geographical
proximity. This theory appears to explain the group formation process based on
nearness.
2. Homan’s Interaction: Homan’s theory is based on activities, interactions and
sentiments. All these elements are directly related to one another. Homan states
that “the more activities persons share, the more numerous will be their
interaction and the stronger will be their shared activities and sentiments”.
3. Balance Theory: Balance theory of group formation, propounded by Newcomb,
has suggested similarity of attitudes towards relevant objects and goals as the
basic for group formation.
4. Exchange Theory: Exchange theory states the outcome of interaction as a basis
of group formation. The outcome of a relationship should be rewarding in order
to have attraction among the persons of a group. This theory is known as
Exchange theory of reward and cost outcomes.

GROUP BEHAVIOUR
Group behaviour in an organisation is quite complex. Group behaviour refers to
the situations where people interact in large or small groups. The study of group
behaviour is essential for an organisation to achieve its goals. Individual and group
behaviour vary from each other. It realise from time to time.

Determinants of Group Behaviour

 External factors
 Group Member’s resources
 Group structure
 Group Process
 Group Tasks
 Performance and Satisfaction

ADVANTAGES
 Performs complex task
 Generates new ideas
 Serves as liaison
 Serves as problem-solving mechanism
 Facilities complex Decision-Making
 Serves as vehicle of socialisation
 Acts as a agent
DISADVANTAGES
Group think
Diffusion of responsibility
Potential for conflict
Group polarisation
Costly
Time-consuming
Leads to competition
Lack of objective direction
GROUP DYNAMICS
Group dynamics refers to those forces operating or present in the group and
which the behaviour of the members of the group. This study provide information to
the managers about the way to control the behaviour of the members of the group.
According to Kurt Lewin, “Group dynamics deal with internal nature of groups,
how they are formed, what structure and processes they adopt, how they function and
affect individual members, other group and the organisation”.

CHARATERISTICS OF GROUP DYNAMICS

 Perception
 Motivation
 Group goals
 Group organisation
 Interdependency
 Interaction
 Entity

STRUCTRAL DYNAMICS OF GROUPS

The group must have structure just like an organisation has structure. The
structure of a work group has to be deducted from its various components and how
they work.
Structural Dynamics of Group

Group Composition

Group size

Roles

Leadership

Group Norms

Group Cohesiveness

Group status
GROUP DECISION
Group decision-making is defined as a decision situation in which there is more
than one individual involved. The group members have their own attitudes and
motivations, recognise the existence of a common problem, and attempt to reach a
collective decision.
According to George R.Terry, “Decision-making is the selection based on certain
criteria from two or more alternatives”.

NATURE OF GROUP DECISION-MAKING

 There is active interaction
 It is related to situation
 There is joint responsibility
 There is a common issue
 There may be conflicting opinions
GROUP DECISION-MAKING PROCESS
Problem Identification

Problem diagnosis

Solution Generation

Solution Evaluation

Framing a Decision

Follow-up Actions

GROUP DECISION-MAKING TECHNIQUES

Group Decision-making Techniques

Interacting Groups

Brainstorming

Nominal Group Technique

Electronic Meeting

Delphi Technique

ADVANTAGES
o Pooling of Knowledge and information
o Satisfaction and communication
o Personnel Development
o More Risk Taking
o Different Perspectives

DISADVANTAGES
 Time-consuming and costly
 Individual Domination
 Problem of Responsibility
 Groupthink
 Goal Displacement

TEAM
Team is a small group with members in regular contact. When groups do
operating tasks they do as a team and try to develop a cooperative circumstance known
as team work.
According to Katzenbach and Smith, “Team is defined as a small number of
people with complementary skills who are committed to a common purpose,
performance goals, and approach for which they hold themselves mutually
accountable”.
NATURE OF TEAM
Nature of Team

Group of People Basic Units of Performance

Represents set of values Energised by Challenges

Outperform Individuals Flexible & Responsive to change

Deep sense of commitment Interdependence

Positive Synergy

TYPES
1. Problem-solving Teams: Problem solving teams are formed in order to solve a
specific problem, arising in functioning of organisation or from changing
environment
2. Self-Managed Teams or Autonomous work group: Self managing teams operate
with participation decision-making, shared tasks, and responsibility for many of
the managerial duties performed by supervisors in more traditional settings.
3. Cross-functional Teams: Cross-functional teams are made up of employees from
about the same hierarchical level, but from different work areas, who come
together to accomplish a task.
4. Virtual Teams: A virtual team – also known as Geographically Dispersed
Team(GDP) is a group of individuals who work across time, space, and or with
links strengthened by webs of communication technology.

DEVELOPING TEAM
Underdeveloped or forming stage

Experimental or Storming stage

Consolidating or Norming stage

Maturity or Performing stage

TEAM EFFECTIVENESS
 Clear purpose
 Informality
 Participation
 Listening
 Civilised disagreement
 Consensus decisions
 Open communication
 Clear roles and work assignments
 Shared Leadership
 External Relations
 Style Diversity
 Self-Assessment

TEAM BUILDING
Team building can be defined as the process of planning and encouraging
working practices that are effective and which minimise the difficulties that
obstruct[block] the team’s competence[ability] and resourcefulness.
 According to Lusier, “Team building is an organisational development technique
used to assist work group operate more efficiently and effectively”.

Benefits of Team Building:

 Improve relationships
 Increases employees’ motivation
 Increases morale and ease conflicts
 Facilitates exchange of ideas
 Increases employee satisfaction
 Improves communication
 Provides organisational flexibility
 Enhances commitment to goals
 Expands job skills
 Provides higher levels of productivity

Limitations of Team Building

 Possibility of group think
 Focuses only on workgroup
 Complicated exercise
 Requires a huge time commitment

Guidelines for Team Building

 Emphasise common interests and values
 Use symbols to develop identification with the group
 Encourage and facilitate social interaction
 Tell people about group activities and achievements
 Conduct process analysis sessions
 Increase incentives for mutual cooperation

TEAM COMMUNICATION
Team communication is basically a verbal or non verbal message that is sent and
received within a team for the purpose of mutual understanding and acceptance.
Effective team communication works to reduce the confusion and misunderstanding of
the members.

Goals of Team Communication

To disseminate ideas
To avoid duplicate work
To eliminate confusion
To monitor progress
To provide feedback
To take efficient action
To encourage input

LIMITATION IN TEAM
 Unequal participation
 Not team players
 Limiting creativity
 Longer process
 Inherent[natural] conflict

DIFFERENCES BETWEEN TEAM AND GROUP

Basis of differences Team Groups

Suitability A team work best for long- Groups are great for short-
 term projects term output
Sharing Team frequently comes Group comes together to
together for discussion share information
Accountability/Responsibility In a team there is Group there is an
individual and mutual individual responsibility
accountability of each
team members
Focuses Teams are more focused Group focus on individual
on team goals goals
Definition Team defines individual Group defines individual
roles, responsibilities and roles, responsibilities and
tasks to help team to do its tasks
share and rotate them
Concern Team concern with Group concern with one’s
outcomes of everyone own outcome
Head Team leader Manager
Members 7-12 members 2-4 members
Formation Difficult to form Easy to form

COMMUNICATION
Organisational communication provides the basis for understanding virtually
every process that occurs in organisation. Communication is a vital[very important]
management component[part] to any organisation. It is a two-way process concerned
with sharing and understanding of information.

COMMUNICATION PROCESS:

Sender Encoding Channel Receiver Decoding

Feedback

FUNCTIONS OF COMMUNICATION
 Information sharing
 Feedback
 Influence people
 Gate keeping
 Coordination and regulation of production activities
 Socialization
 Innovation
 Necessary for sound decisions
 Greater scope of managerial influence

BARRIERS OF EFFECTIVE COMMUNICATION

 Semantic barriers
 Emotional barriers
 Physical barriers
 Organizational barriers
 Personal barriers
WAYS OF OVERCOMING BARRIERS
o Maintaining similarity
o Empathy[understanding]
o Working hypothesis
o Be patient
o Written word

METHODS OF IMPROVING COMMUNICATION

1. Methods of Improving the efficiency of Interpersonal communication:
A. Misperception
B. Selective evaluation of others
C. Selective evaluation of self
D. Selective Interaction
E. Response Evocation[suggestion]
2. Methods of improving organisational communication
a. Encourage open feedback
b. Another mechanism for soliciting feedback is corporate hotlines
c. Use simple language
d. Avoid overload
e. Be a good listener
 UNIT – IV
LEADERSHIP

Leadership is the process of influencing the behaviour of others to work willingly

for achieving predetermined goals. Leadership changes potential into reality. A leader
is a person who leads or guides or one who is in-charge or command others who has
influence or power, especially of a political nature.

According to Alan Keith, “Leadership is ultimately about creating a way for

people to contribute to making something extraordinary happen”.

NATURE OF LEADERSHIP
 Leadership is a process of influence
 Leadership is related to situation
 Leadership is the function of stimulation
 Leadership gives an experience of helping and attaining the common objectives
 Employees must be satisfied with the type of leadership provided
 There must be followers
 Working relationship between leader and followers
 Community of interests

BASIC QUALITIES OF LEADERSHIP

 Ability to inspire others
 Problem-solving skills
 Emotional maturity
 Ability to understand human behaviour
 Willingness to take risks
 Dedication to organisational goals
 Intelligence
 Sound physique
 Foresight and vision
 Responsibility
 Leader should be trustworthy
 Leader should be confident on his view point
 Must do thing in systematic manner
 Significant level of tolerance
 Must be focused
 Committed to excellence

LEADERSHIP STYLES

A B A
B C
E A C
D E
B C D D

Autocratic Participative Free Rein

1. Autocratic /Dictatorial Leadership style:

The autocratic leader gives orders, which must be obeyed by the subordinates.
He determines policies for the group without consulting them, and does not give
detailed information about future plans, but simply tells the group what immediate
steps they must take. Under this style all decision making power is centralised in the
leader. Autocratic leadership may be negative because followers are uninformed,
insecure and afraid of leader’s authority.

ADVANTAGES:
 Facilitates fast Decision-making
 Increased Productivity
 Reduces stress
 Helpful in training new employees
 Improved logistics of operations

DISADVANTAGES:
3. Discourages follower’s development
4. Increases leader’s workload
5. Induces fear and resentment[dislike
6. Increases dependency on leader
7. Leads to frustration[disturbance]
8. Exploit[with use of] people

2. Democratic/participative Leadership style:

Participative leadership style decentralises managerial authority. The leader’s
decision is taken after consultation with his followers and after their
participation in the decision making process. The democratic leadership style,
which is also participative by nature, is popular among the leader because it is
people centred.

ADVANTAGES:
 Increases acceptance of management’s ideas
 Effective utilisation of follower’s knowledge
 Increase follower’s commitment
 Fosters professional competence
 Reduction of friction and office politics
 Reduced employee turnover
 High quality work

DISADVANTAGES
o Leads to misinterpretation about leader
o It is time-consuming
o Creates lack of responsibility
o Results in danger of pseudo[imitation] participation

3. Free rein or Laissez Faire Leadership style:

A free-rein leader does not lead, but leaves the group entirely to itself.
Group members work themselves and provide their own motivation. Free-rein
leadership ignores the manager’s contribution approximately in the same way as
the autocratic leadership ignores that of the group.
ADVANTAGES:
 Provides freedom of direction
 Reduces work for leader
 Motivates team

DISADVANTAGES
Increased stress levels for employees
Results in lack of ownership
 Leads to lack of direction
Leads to conflict among followers

THEORIES OF LEADERSHIP
Leadership models help us to understand what makes leaders act the way they
do.
Theories of leadership

Traditional Theories Modern Leadership Theory

Trait Theories Situational/ Transactional/ Visionary Charismatic LMX Theory

Contingency Transformational

Behavioural
Theory

1. Traditional Theories
Interest in leadership increased during the early part of the twentieth
century. Early leadership theories focused on what qualities distinguished
between leaders and followers, while subsequent theories looked at other
variables such as situation factors and skill levels.
a. Trait Theories:
It is a traditional approach to the theory of leadership. According to these
theories, it is thought that a leader has specific trait of mind and intelligence.
Some of the important traits of an effective leader are discussed below:
i. Intelligence
ii.Physical features
iii.Inner motivation drive
iv.Maturity
v.Vision and Foresight
vi.Acceptance of responsibility
vii. Open-mind and adaptability
viii.Self-confidence
ix.Human relations attitude
x.Fairness of objectives
b. Ghiselli’s personal traits:
Edwin Ghiselli’s has conducted extensive research on the relationship
between personality and motivational traits and leadership effectiveness.
His findings suggest that the following personality traits range from being
important to unimportant in relation to leadership success.
Very Importance
1. Decisiveness
2. Intellectual capacity
3. Job achievement orientation
4. Self actualisation feelings
5. Self confidence
6. Management ability
Moderately Important
1. Affinity for working class
2. Drive and initiative
3. Need for a lot of money
4. Need for job security and
 5. Personal maturity
Almost no importance
Masculinity[male] versus femininity[female]

2. Behavioural Theories
The behavioural theorists contend that a leader’s style is oriented toward
either an employee-centred or a job-centred emphasis.
a. Employee-centred: In the employee-centred orientation, the leader
emphasises developing friendly, open relationships with employees and is
very sensitive to their personal and social needs.
b. Job-centred: A job-centred orientation is one in which the leader emphasises
getting the job done by planning, organising, delegating, making-decision,
evaluating performance, and exercising close management control.
3. Situation/Contingency Theories:
Contingency or situational theory advocates that leadership is strongly
affected by the situation from which a leader emerges and in which he works.
This leader is a means of achieving the goals of the group and the members. He
recognises the needs of the situation and then acts accordingly.
a. Leadership effectiveness model
b. Hersey and Blanchard’s situational leadership
c. Path-Goal Theory
Modern Leadership Theory:
Contemporary approaches to leadership seek to address the inherent limitations
in traditional leadership theories by providing holistic view of leadership.
1. Transactional and transformational leadership:
Transactional leaders guide or motivate their followers in the direction of
established goal by clarifying role and task requirements.
Transformation leaders inspires followers to transcend their own self-
interests for the good of the organisation, and who is capable of having a
profound and extraordinary effect on his or her followers.
2. Visionary Leadership:
It is described as going beyond charisma [personality] with the ability to
create and articulate a realistic, credible, attractive vision of the future for an
organisation or organisational unit that grows out of and improves on the
present.
3. Charismatic Leadership:
This theory can be traced back to ancient time. A leader has some charisma
which acts as influences. Charismatic leaders are those who inspire followers
and have a major impact on their organisations through their personal vision
and energy
4. Leader-member exchange[LMX]:
The leader-member exchange theory occupies a unique position among
leadership theories because of its focus on the dyadic relationship between
leader and follower. Leaders and followers develop dyadic relationships and
leaders treat each follower differently, resulting in tow group of followers – an
in-group and an out-group.

POWER
The term “Power” may be defined as the capacity to exert influence over others.
The essence of power is control over the behaviour of others. Power is the degree of
influence an individual or group has in decision-making, without being authorised by
the organisation to do so.
According to Stephen P.Robbings, “Power is defined as the ability to influence
and control anything that is value of other”.
 According to Max Weber, “Power is the probability that one actor within the
relationship will be in a position to carry out his own will despite resistance”.

NATURE OF POWER:
Nature of Power

Reciprocal Relationships Dependency Relationships

Power is specific unequal Distribution

People Differ in terms of values Resistance to change

Power losers attempt to form Power can expand or contract

Coalition[union]

SOURCE OF POWER
Source of power

Sources of individual Functional and Divisional Structural sources of

Sources of Formal Ability to control Knowledge as power

Individual power Uncertain contingencies Resources as power
Sources of informal Substitutability Decision Making as power
Individual power Centrality
Ability to control and
Generate resources
Visibility

POWER CENTRES:
Power centre is a person who is in close vicinity of higher management and
whom management trusts and takes feedback from. It is very important to understand
the actual people who are powerful in the company.

Ways to use power centres

 Destabilise[weaken/threaten]
 Communicate
 Defuse resistance
 Be deliberate
 Dominate sequence
 Create definitive systems

Precautions while dealing with power centres

 Indentify and select more than one power centre
 Selectively disclose the things
 Make them feel important
 Never criticise the company or boss
 Maintain relations

POLITICS
Politics relates to the way a person is able to get power over others and the way
in which he uses power over others. It is a method of operating in order to influence the
behaviour of others.
 According to Stephen Robbins, “ Politics in organisation are those activities that
are not required as part of one’s formal role in the organisation, but that influence, or
attempt to influence, the distribution of advantages and disadvantages within the
organisation”.

NATURE OF POLITICS:
1. Politics behaviour involves some kind of power either directly or indirectly
2. Politics involve the management of influence to obtain ends not sanctioned by
the formal organisation
3. Politics involves behaviour that is self-serving
4. Politics takes place when an individual recognises that achievement of his goals
is influenced by the behaviour of others.
5. All self-serving behaviour which do not involve use of power or threat of use of
power cannot be termed as politics

LEVELS OF POLITICAL ACTION

1. Individual level
2. Coalition[union] level
3. Network level

POWER AND POLITICS

Power is defined as “the ability to influence others” and corporate politics is “the
carrying-out of activities not prescribed by policies for the purpose of influencing the
distribution within the organisation”.

TATICS USED TO GAIN POLITICAL POWER

Tactics used to gain political power

Bargaining or Trade-off Competition Co-operation Coalition

Pressure Control over information
Control over communication channels
 UNIT V
DYNAMICS OF ORGANISATIONAL BEHAVIOUR
ORGANISATIONAL CULTURE
Organisational culture is the accumulated tradition of the organisational
functioning. It is based on certain values, norms and positive attitudes of an
organisation.
According to O’Reilly, “Organisational culture is the set of assumptions, beliefs,
values, and norms that are shared by an organisation’s members”.
CHARACTERISTICS:
Characteristics of Organisation Culture

Prescriptive Socially shared

Facilitates Communication Learned
Subjective Enduring
Cumulative Dynamic

TYPES:
Types of Organisational Culture
Mechanistic and Organic Cultures
Authoritarian and Participative Cultures
Strong and Weak Cultures
Dominant and Subcultures
1. Mechanistic and Organic Cultures:
In Mechanistic Cultures authority is thought of as flowing down from the
top of the organisation down to the lower levels and communication flows through
prescribed channels.
Contrast is the Organic culture. Formal hierarchies of authority,
departmental boundaries, formal rules and regulations, and prescribed channels of
communications are frowned upon.
2. Authoritarian and Participative culture:
In the authoritarian culture, power is concentrated on the leader and
obedience to orders and discipline is stressed.
Participative cultures tend to emerge where most organisational
members are professionals or see themselves as equals.
3. Strong and weak Cultures:
A strong culture will have a significant influence on employee behaviour
manifesting in reduced turnover, lower absenteeism, increased cohesiveness, and
positive attitudes.
A weak culture is characterised by the presence of several sub-cultures,
sharing of few values and behavioural norms by employees, and existence of few sacred
traditions.
4. Dominant and Subcultures:
Dominant culture denotes the core values which are shared by majority
of the employees in the organisation it is the macro-cultural perspective that presents
the organisation’s personality.
Sub-cultures are denoted by units/departments/geographic separations.
Subcultures can be distinctive because of the age, class, location and gender of the
members
IMPORTANCE OF ORGANISATIONAL CULTURE
Importance of Organisational Culture

It is a Talent Attractor Engages People

Creates greater synergy Makes everyone more successful
Acts as Control system Operates as social glue[attach]
Helps in sense making

PROCESS OF CREATING ORGANISATIONAL CULTURE

Establishing Creating Operationalising Socialisation of

Values Vision Values & Vision Employees

METHODS OF SUSTAINING ORGANISATIONAL CULTURE

Behaviour of Managers and Teams
Role modelling, Teaching and coaching

Recruitment, Selection, Promotion, and Removal

Allocation of Rewards and status

Organisation stories

ORGANISATIONAL CLIMATE
Organisational Climate is very important factor to be consider in studying and
analysing organisations because it has a profound influence on the outlook, well-being
and attitudes of organisational members and thus, on their total performance.

COMPONENTS:
 Members’ concern
 Interpersonal relationships
 Degree of control
 Individual freedom
 Type of structure
 Management orientation
 Reward system
 Risk-taking
 Conflict Management
 Degree of trust
IMPORTANCE OF ORGANISATIONAL CLIMATE
 Increased employee performance
 Develop strong relationship
 Determinant of success or failure
 Managers can get there work done easily
 Develops confidence
 Resource conservation
 Social benefit
 Reduces turnover
 Develops a sense of attachment with organisation
 Develops healthy organisation
JOB SATISFACTION
Job satisfaction refers to the general attitude or feelings of an individual towards
his job.
According to Smith, “Job satisfaction is an employee’s judgement of how well his
job has satisfied his various needs”.
According to Locke, “Job satisfaction is a pleasurable state resulting from the
appraisal of one’s job or job experiences”.

DETERMINANTS OF JOB SATISFACTION

Determinants of Job satisfaction

Individual factor Nature of Job Situational Variables

Level of education Occupational Level Working conditions
Age Job content Supervision, work groups
Equitable rewards
Opportunity for promotion
Significance of Job satisfaction:
1. Improves Job performance
2. Builds positive Organisational citizenship Behaviour
3. Increases customer satisfaction
4. Work absenteeism
5. Reduces turnover
ORGANISATIONAL CHANGE
Change refers to any alteration that occurs in total environment. Organisational
changes are the changes of attitude, natures and interest of employees, technological
and environmental changes related to an organisation and changes in rules and
regulations affecting the organisation.
According to Organisation Development and Research Organisation,
“Organisational change is the implementation of new procedures and technologies
intended to realign an organisation with the changing demands of its business
environment or to capitalise on business opportunities”.
NATURE OF ORGANISATIONAL CHANGE
 Change is a continuous process
 Change affects whole organisation
 Change is perceptual and Behavioural
 Change affects individuals in the multiple roles
 Change is natural
 Change may be planned or unplanned
 Change may be transformational
 Initiation of change efforts
IMPORTANCE OF ORGANISATIONAL CHANGE
1. Changes in environment
a. Economic and market changes
b. Technological change
c. Legal/Political changes
d. Resources availability changes – money, materials and human resources
2. Changes managerial level - human resources
a. Promotion of junior level managers to higher level
b. Dismissal or lay-off from the job of the managers
c. Resignation or turnover of managers from company service.
3. Deficiency in present organisation
a. Duplication of work
b. Working procedure
c. Barriers in communication process
 4. Check the growth of inflexibility
a. Employee goal change
b. Work/job technology changes
c. Organisational structure, climate and goal change
TYPES OF CHANGES
Types of Changes

Happened change Reaction change

Anticipatory changes Proactive change
Strategic change Structural change
Process-oriented change People-oriented change
Operational change fundamental change
Total change Transformational change
Revolutionary change Recreational change
ORGANISATIONAL CHANGE PROCESS
Problem Recognition
Identifying the causes of Problem
Implementing the change
Generating motivation for change
Managing the Transition state
Supporting the change

Evaluating the change

FORCES OF ORGANISATIONAL CHANGE

Factors of Organisational Change

External Forces Internal Forces

Technology Managerial personnel

Marketing conditions Operative personnel
Social changes Deficiencies in existing structure
Political Forces Changes in employee expectations
Globalisation Change in work climate
Workforce diversity
Changing economic conditions

RESISTANCE TO CHANGE
Resistance to change involves employees’ behaviour designed to discredit, delay
or prevent the change introduced for the development of an organisation. They resist
because they are afraid of their job security, working conditions, status, regression and
other factors.
According to Lines, “Resistance to change can be defined as behaviours that are
acted out by change recipients in order to slow down or terminate an intended
organisational change”.
LEVELS OF RESISTANCE TO CHANGE
Levels of Resistance to change

Individual Resistance Group Resistance Organisational Resistance

1)Habit 1)Group norms 1)Power and Conflicts

2)Security 2)Group cohesiveness 2)Differences in functional
Orientation
3)Economic factor 3)Group think and 3)Mechanistic structure
4)Fear of the unknown Escalation[growth] 4)Organisational culture
5)Selective information Commitment
Processing
DEALING WITH RESISTANCE TO CHANGE
 Participation and involvement
 Communication and education
 Leadership
 Negotiation and agreement
 Willingness for the sake of the group
 Timing of change
 Selecting people with accept change
MANAGING CHANGE
Change Management is the process of developing a planned approach to change
in an organisation. Change Management is the process of developing a planned
approach to change in an organisation.
According to Gabler, “Change management is the strategy of planned and
systematic change, which is achieved by the influence of the organisational structure,
corporate culture and individual behaviour, under the greatest possible participation of
the employees”.
LEADING THE CHANGE PROCESS:
Leading change is one of the most important and difficult leadership
responsibilities. To effectively lead change, one must recognise that the phenomenon of
“change” does not need managing as much as do the people involved with it.
1. Align individual priorities with organisational goals
2. Learn to live with Ambiguity[doubt]
3. Understand the leadership style First
4. Change what one can change – oneself
5. Influence what one cannot change – others
6. Become an early adopter
7. Create a community of peers
8. Help other employees cope with change
9. Encourage communication among peers
10. Believe in the change and speak up
Guidelines for facilitating change
1. Unfreezing the system
a. Creating dissonance[conflict]
b. Sharing information
c. Creating contacts with the external world
d. Enlisting top management support
e. Reward for change efforts
2. Facilitating the movement
a. Establishing clear goals
b. Involving people in change
 c. Focusing on the total system
d. Developing support systems
3. Re-establishing the equilibrium
a. Rewarding /celebrating desired behaviour
b. Planning for incremental success
c. Creating social bonds
d. Institutionalising the change
CHALLENGES IN CHANGE MANAGEMENT
 Perceptual barriers
a. Problem recognition
b. Too narrow scope of the problem
c. Information overload
d. Misjudgements
 Emotional Barriers
a. Risk-Aversion
b. Lack of ability to process incomplete
c. Preference to evaluate existing ideas instead of generating new ideas
d. Not taking time for thinking
 Cultural Barriers
a. More focus than imagination
b. Problem-solving is seen as a serious matter
c. Reasons and intuition
d. Tradition and change
 Environmental Barriers
a. Lack of support
b. Lack of ability to accept criticism
c. Managers who always know the answer
 Cognitive Barriers
a. Use of wrong terminology
b. Sticking to strategies
c. Lack of complete and correct information
STRESS
Work-related stress is a pattern of reactions that occurs when workers are
presented with work demands that are not matched to their knowledge, skills or
abilities and which challenge their ability to cope.
According Beehr and Newman, “Stress is a condition arising from the interaction
of people and their jobs and characterised by changes within people that force them to
deviate from their normal functioning”.
NATURE OF STRESS
 Stress is not simply anxiety or nervous tension
 Stress is not be always due to overwork
 Stress need not always be damaging
 Stress cannot be avoided
 Body has a limited capacity to respond
WORK STRESSORS/CAUSES OF STRESS
Stressors are the factors causing stress.
1. Individual Level stressors
a. Personality type
b. Career development
c. Life change
d. Role perceptions
 2. Group Level Stressors
a. Lack of group cohesiveness
b. Lack of social support
c. Inter and Intra-Group Relationships
d. Sexual harassment
e. Physical violence
3. Organisational Level Stressors
a. Task Demands
b. Role demands
c. Inter-personal relationships at work
d. Organisational structure and climate
e. Organisational leadership
f. Group pressures
4. Extra Organisational Stressors
a. Phenomenal Rate of change
b. Family
c. Relocation
d. Life’s changes
e. Sociological variables
PREVENTION AND MANAGEMENT OF STRESS
Prevention and Management of stress

Individual strategies of Organisational strategies of

stress management stress management
Relaxation Organisational Role clarity
Time management Job redesign
Role management Stress management programme
Meditation Supportive organisation climate
BALANCING WORK AND LIFE/WORK-LIFE BALANCE
Work-life balance is the term used to describe those practices at workplace that
acknowledge and aim to support the needs of employees in achieving a balance between
the demands of their family life and work-lives.
According to Work Foundation, “Work-life balance is about individuals having a
measure of control over when, where and how they work, leading them to be able to
enjoy an optimal quality of life”.
OPTIONS OF WORK-LIFE BALANCE
 Flexitime
 Compressed workweek
 Job sharing
 Flexible Compensation
 Telecommuting
 Part-time work
 Modified Retirement
ADVANTAGES OF WORK-LIFE BALANCE
 Develop loyalty and commitment
 Increases productivity
 Reduces Absenteeism
 Reduces staff turnover
 Encourages employee participation
 Helps in attraction and retention of employees
DISADVANTAGES OF WORK-LIFE BALANCE
o Lack of Time
o Inequality organisation
o More Flexibility
o Change of policies
GUIDELINES FOR IMPROVING WORK-LIFE BALANCE
 Indentify employee’s needs
 Focus on organisational culture
 Improve personal and organisational Efficiency
 Set-up work life policies
 Inform and train managers
 Communicate the policies and benefits
 Evaluate work-life balance success
ORGANISATIONAL DEVELOPMENT (OD)
Organisation development is a body of knowledge and practice that enhances
organisational performance and individual development. Organisation development is
the process of bringing change in the entire aspects of the organisation.
According to Lippitt G.L., “ Organisational Development is the strengthening of
those human processes in organisation, which improve the functioning of the organic
systems, so as to achieve its objectives”.
CHARACTERISTICS OF ORGANISATIONAL DEVELOPMENT
1. OD is a planned strategy to bring about organisational change
2. OD programs include an emphasis on ways to improve and enhance performance
3. OD relies on a set of humanistic values about people and organisations
4. OD always involves a collaborative approach to change
5. OD represents a systems approach
6. OD is based upon scientific approaches to increase organisation effectiveness
PROCESS OF ORGANISATIONAL DEVELOPMENT
Initial Diagnosis[analysis]
Data Collection
Data Feedback and Confrontation
Selection and Design of Interventions
Implementation of Intervention
Action Planning and Problem-solving
Team-Building
Inter-Group Development

Evaluation and follow-up

ORGANISATION DEVELOPMENT TECHNIQUES:

OD Intervention Techniques

Behavioural Non-Behavioural Miscellaneous

Sensitivity Training Change in orgn. Structure Survey Feedback
MBO Work Design Process Consultation
Grid Development Job Enrichment Team Building
SIGNIFICANCE OF ORGANISATIONAL DEVELOPMENT
 Provides Recognition
 Boost developmental activity
 Increase Effectiveness
 Competitive Environment
 Enhance Employee power
 Defines company’s strategy
 Defines company’s structure
 Identification of functional areas
 Appraisal
 Helps in analysis
LIMITATION
 Based on behavioural science concepts
 Requires Initiators
 Requires consideration of circumstances
 Other limitations
a. Time consuming
b. Substantial expense
c. Delayed pay-off period
d. Possible failure
e. Possible invasion of privacy
f. Possible psychological harm
g. Emphasis on group process rather than performance
h. Difficulty in evaluation
ORGANISATIONAL EFFECTIVENESS
Organisational effectiveness is the extent to which an organisation achieves its
goals with the given resources and means. An organisation is said to be effective if it is
able to achieve its goals.
According to Price, “Organisational effectiveness is the degree of achievement
of multiple goals”.
LEVELS OF ORGANISATIONAL EFFECTIVENESS
Levels of Organisational Effectiveness

Individual Effectiveness Group Effectiveness Organisational Effectiveness

Ability Cohesiveness Environmental
Aptitude Leadership Technology
Skills Structure Strategic choice
Knowledge Status Structure
Attitude Roles Processes
Emotion Norms Culture
Motivation, Stress
INDICATORS OF ORGANISATIONAL EFFECTIVENESS
1. Innovation 2. Results 3. Productivity 4. Absence
5. Fiscal Indicators 6. Perceptions of Corporate Performance

GENDER DIVERSITY AT WORKPLACE

Gender diversity in the workplace is the equal treatment and acceptance of both
males and females in an organisation. Gender diversity means the proportion of males
to females in the workplace. Gender diversity in the workplace is a tendency to have an
equal, or at least close to equal, number of employees of both genders.
DEVELOPING GENDER-SENSITIVE WORKPLACE
 Committee for handling gender complaints
 Relaxation of working Hours for women
 Hostile work Environment
 Ensuring Women participation
 Gender Development programmes

WAYS TO BUILD A GENDER-BALANCED ORGANISATION

 Define diversity
 Ensure alignment
 Put the plan into action
 Maintain a culture of diversity

BENEFITS OF GENDER DIVERSITY AT WORKPLACE

o Equality at work
o Satisfaction at workplace
o Dignity at work policy
o Motivation
 UNIT II
INDIVIDUAL BEHAVIOUR
Individual’s Behaviour is viewed as being driven by the meanings they give to
various situations or the way they see things and therefore behave. Individual
behaviour is complex and every individual is different from another. The challenge
of an effective organisation is in successfully matching the task, the manager and the
subordinate.
NATURE OF INDIVIDUAL BEHAVIOUR

Field of study and not a discipline

Applied science

Humanistic and optimistic

Inter-Disciplinary approach

Normative and value-centred

Oriented towards organisational objectives

FOUNDATIONS OF INDIVIDUAL BEHAVIOUR

Personal Factors Psychological Factors

 Age  Personality
 Gender  Perception
 Education  Attitudes
 Abilities  Value
 Marital Status  Learning
 No. Of Dependents  Motivation
 Creativity
Individual Behaviour
Organisational Factors Environmental Factors
 Physical Facilities  Economic Factors
 Organisation  Social Norms,
structure and Design Cultural and Value
 Leadership factors
 Reward system  Political factors
 Work-related
Behaviour

PERSONALITY
The Term personality has been derived from Latin word “Personare” which
means “to speak through”. Personality is used in terms of influencing others through
external appearance.

According to Schiffman and Kanuk, “Personality can be defined as those inner

psychological characteristics that both determine and reflect how a person responds to
his or her environment”.
TYPES OF PERSONALITY
Types of Personality

Sensing Managers Intuitive Managers

Feeling Managers Thinking Managers
Intuitive Thinkers (NT) Sensation Feelers (SF)
Sensation Thinkers (ST) Intuitive Feelers (NF)
FACTORS INFLUENCING PERSONALITY
Factors influencing Personality

Biological Cultural Family and Social Situational Other

Heredity Home Environment Temperament

Brain Family Members Interest

Physical Features Social Groups Character,

Motives
THEORIES OF PERSONALITY
Theories of Personality

Freudian Theory Self Theory Trait Theory

Neo Freudian Personality Theory Carl Jung and MBTI

1. Freudian Theory:
Freud, the father of psychoanalytic theory, proposed that
individual’s personality is the product of a struggle among three interacting forces – the
id, the ego, and the superego.
2. Neo Freudian Personality Theory:
According to this Neo-Freudian’s social relationships played a vital role in
the formation and development of personality. Its concerned with the individual’s
efforts to reduce tensions, such as anxiety[worry].
3. Self Theory
Self theory, termed as field theory, emphasises the totality and
interrelatedness of all behaviours. This approact treats the organism as a whole to a
greater degree than do any of the other theoretical formulation. The four factors are
1. Self-Image
2. Ideal-Self
3. Looking Glass-Self
4. Real-Self
4.Trait Theory:
Trait theorists are concerned with the construction of personality test
that pinpoint individual differences in terms of specific traits. Trait theorists advocated
that personality tests will indicate the individual differences in terms of specific traits.
Big Five Traits model:
 Core Traits Descriptive characteristics of High scorers
1. Extraversion Sociable, outgoing, talkative, assertive[confident],
gregarious[expressive]
2. Agreeableness Cooperative, warm, caring, good-natured, trusting
3. Conscientiousness Dependable, hardworking, organised, self-disciplined,
responsible
4. Emotional stability Calm, secure, happy, unworried
5. Openness to Curious[interest], intellectual, creative, cultured,
experience artistically[Creatively] sensitive, flexible, imaginative
5.Carl Jung and MBTI:
One approach to applying personality theory in organisations is the
Jungian approach. Jung suggested that human similarities and differences could be
understood by combining preferences. We prefer and choose one way of doing things
over another.
The MBTI model
1. Understanding and developing yourself
2. Understanding and developing others
3. Understanding what motivates others
4. Understanding other’s strengths and weakness
5. Allocating and agreeing tasks and project responsibilities

ORGANISATIONALLY RELEVANT PERSONALITY TRAITS

Organisationally Relevant Personality Traits

Self-Monitoring Self-Esteem
Need Patterns Locus of Control
Authoritarianism Machiavellianism
Introversion and Extraversion bureaucratic Personality
Risk Taking Type ‘A’ and Type ‘B’
LEARNING
Learning is an important psychological process determining human behaviour.
It is a continuous process and it occurs all the time. Learning may be defined as the
sum total of behavioural changes resulting from experience at training.
According to Sanford, “Learning is a relatively enduring change in behaviour
bought about as consequence of experience”.
According to Martyn Sloman, “Learning is the process by which a person
constructs knowledge, skills and capabilities”.
CHARACTERISTICS OF LEARNING:
 Learning is growth
 Learning is adjustment
 Learning is organising experience
 Learning involves acquisition of knowledge and skills
 Learning is a process of conditioning
 Learning involves change
 Learning is continuous
 Learning is Transferable

TYPES OF LEARNERS
 Divergers: Who learn by observing and feeling and have the ability to view
concrete situations from different angles. They do well in generating ideas.
 Assimilators: Who learn by observing and thinking and are able to understand a
wide range of information and put it in a concise and logical form.
  Convergers: Who learn by doing and thinking, tend to focus on solutions by
seeking out practical use of information.
 Accommodators: Who learn by doing and feeling and tend to rely more heavily
on people for information while making decisions.

LEARNING PROCESS
Stimuli Attention Recognition Translation

Reinforcement

Behaviour

Efforts Motives Habits Reward

LEARNING THEORIES:
1. Connectionist Learning Theory:
The theory minimises the importance of reinforcement to learning.
Reinforcement is employed in conjunction with two fundamentally different methods of
learning connections Classical ad Operant conditioning.
a. Classical Conditioning:
In classical conditioning theory an individual responds to some
stimulus[incentives/motivation ]that would not ordinarily produce such a response.
b. Operant Conditioning:
Operant conditioning is a type of conditioning in which desired voluntary
behaviour leads to a reward or prevents a punishment. People learn to behave to get
something they want or to avoid something they don’t want.
2. Observational Learning/Social Learning Theory:
Observational learning, also called social learning theory, occurs when an
observer’s behaviour changes after viewing the behaviour of a mode. Social learning
involves several processes are
a. Attention Processes
b. Retention Processes
c. Motor Reproduction Process
d. Reinforcement Processes
3. Cognitive Learning Theory:
Instead of viewing learning as the development of connections between
stimuli and responses, cognitive theorists stress the importance of perception, problem
solving, and insight. Cognitive learning can range from very simple information
acquisition to complex, creative problem solving

ORGANISATIONAL BEHAVIOUR MODIFICATION

Organisational behaviour modification represents the application of
reinforcement[strengthening] theory to individuals in the work setting. OB
modification can be applied for motivating the employees and also for enhancing
organisational effectiveness.
According to Stephen P.Robbins, “OB modification is a program where managers
identify performance-related employee behaviours and then implement an intervention
strategy to strengthen desirable behaviours and weaken undesirable behaviours”.
PROCESS OF OB MODIFICATION
Identification of critical behaviours

Measurement of behaviours

Functional analysis of behaviours

Development of intervention strategy

Evaluation
OB MODIFICATION STRATEGIES
 Organisational Culture
 Emotional Labour
 Professional Ethos[culture]
 Positive Reinforcement
SIGNIFICATION OB MODIFICATION
o It deals with observed behaviour
o Behaviour modification presents a set of tools by which people can learn new
behaviour
o It provides managers various tools for effectively controlling
o It is comparatively easy to understand.

LIMITATIONS OB MODIFICATION
 It restrict freedom of choice of behaviour
 It is based on the assumption that individual behaviour is controlled by his
environment
 It is an exercise in over simplification
 It ignores the internal causes of behaviour

ORGANISATIONAL MISBEHAVIOUR
It is commonly accepted that organisations expect employees to do a number of
things at work, these expectations are not always met and fulfilled. When this happens,
they are said to misbehave.
TYPES OF ORGANISATIONAL MISBEHAVIOUR:
Sexual Harassment[irritation/trouble]
Bullying [maltreatment]
Incivility [bad manners / lack of respect]
Fraud
Substance abuse[neglect] at work
Cyber slacking
Sabotage[damage]
MANAGEMENT INTERVENTION IN ORGANISATIONAL MISBEHAVIOUR

Individual Interpersonal
1. Values Misbehaviour
2. Attitudes 1. Sexual
3. Personality Harassment
4. Emotion 2. Violence
5. Stress 3. Discrimination
4. Bullying
Job Normative Force Intrapersonal Financial
1. Task identify Organisational Misbehaviour 1. Reduce
2. Task variety Pressure and 1. Substance Production
3. Task Expectation abuse 2. Lawsuits
significance 2. Fraud 3. Loss of image
4. Emotions
5. Stress
Intention to Performance Social
Misbehave Misbehaviour 1. Mental and
1. Cyerslacking Physical injury
2. Social Loafing 2. Job
3. Absenteeism Dissatisfaction
Organisation Instrumental Force
1. Strategy Personal interests Property
2. Goals and beliefs Misbehaviour
3. Culture 1. Theft
4. History 2. Sabotage
5. Systems 3. Espionage
6. Ethics
Management
Interventions
Group Focus on Political
1. Norms antecedent Misbehaviour
2. Development 1. Selection 1. Impression
3. Cohesiveness 2. Education management
4. Leadership 3. Training 2. Favouritism

Focus on Outcomes
1. Sanctions
2. Suspension
3. Termination

Antecedents Mediations Outcomes Costs

EMOTIONS
 Emotion is one of the most controversial topics in studying human behaviour, a
source a intense discussion and disagreement from the earliest philosophers and other
thinkers to the present day.
According to crow and Crow, “An emotion is an affective experience that
accompanies generalised inner adjustment and mental and physiological stirred-up
states in the individual and at shows itself in his overt[clear] behaviour”.
TYPES OF EMOTION
1. Positive Human Emotions
a. Love
b. Appreciation
c. Happiness
d. Hope
e. Enthusiasm[interest]
f. Optimistic[positive thoughts]
2. Negative Human Emotions
a. Fear
b. Anger
c. Guilt[Blame]
d. Depression
e. Pride[superiority]
f. Jealousy
g. Frustration[irritation]
h. Envy[desire]
DETERMINANTS OF EMOTIONS
 Personality
 Day of the week and time of the day
 Weather
 Stress
 Social activities
 Exercise
 Age
 Gender
EMOTIONAL LABOUR
Emotional Labour is an employee’s expression of organisationally desired
emotions during interpersonal transaction at work.
According to Morris and Feldman, “Emotional labour is the effort, planning, and
control needed to express organisationally desired emotions during interpersonal
transactions”.
EMOTIONAL INTELLIGENCE
Emotional Intelligence is the ability to command respect by building
relationships or the ability to get along with the people and situations. Understanding
of emotional intelligence can help managers in knowing employees moods and
emotions, for this it is necessary to understand the level of emotional intelligence.
NATURE OF EMOTIONAL INTELLIGENCE
 Self-Awareness
 Self-Management
 Motivation
 Empathy
 Social Skills
THEORIES OF EMOTIONAL INTELLIGENCE
1. Ability – based Model: The ability to perceive emotion, integrate emotion to
facilitate thought, understand emotions, and to regulate emotions to promote
personal growth”.
 2. Mixed Models of EI: Models that mix together emotional intelligence qualities
with other personality traits unrelated to either emotion or intelligence are often
referred to as mixed models of emotional intelligence.
3. Trait EI Model: It proposed a conceptual distinction between the ability based
model and a trait based model of EI. Trait EI refers to a collection of behavioural
dispositions and self-perceptions concerning one’s ability to recognise, process,
and utilise emotion-laden information.

SIGNIFICANCE OF EMOTIONAL INTELLIGENCE

 Improves relationships
 Improves communication with others
 Better empathy skills
 Acting with integrity
 Respect from others
 Improved career prospects
 Manage change more confidently

LIMITATIONS OF EMOTIONAL INTELLIGENCE

 EI is too vague a concept
 EI can not be measured
 Validity of EI is suspect
ATTITUDES
Attitude is a state of mind of an individual towards something. It may be defined
as a tendency to feel and behave in a particular way towards objects, people or events.
According to Bemm, “Attitudes are likes and dislikes”.

CHARACTERISTICS OF ATTITUDES:

Attitudes have an object

Attitudes have Direction, Degree and Intensity
Attitudes have structure
Attitudes are learned

IMPORTANCE OF ATTITUDES
Importance of Attitudes

Influences Productivity Effects perception of Employees

Creates positive work-Environment Helps in reducing stress
Assists Employees in Advancement Improves Quality of Life
Build customer loyalty Maintains safety
Triggers Enthusiasm

COMPONENTS OF ATTITUDES
 Cognitive[intelligence] Component
 Affective Component
 Behavioural Component
ATTITUDE FORMATION:
Attitude formation is the process by which an individual develops a
favourable or unfavourable evaluation of an object, i.e., attitude formation is based on
experience that lead a person to hold a specific attitude.
PROCESS OF ATTITUDE FORMATION
Childhood phase

Adulthood Phase

Maturity Phase
FACTORS INFLUENCING ATTITUDE FORMATION
Psychological Factors
Family Factors
Social Factors
Organisational Factors
Economic Factors
Political Factors
ATTITUDES MEASUREMENT
Attitude Measurement
Thurstone Type of Scale Likert Scales
Semantic Differential Repertory Grid
Opinion Surveys Interviews
Self-Fulfilling Prophecy[Forecast]
CHANGING ATTITUDE
Once formed, attitudes have tendency to persist and are very difficult to
change. The main difficulty in changing attitudes is resistance on the part of people to
change. To be more specific, attitudes can be changed by changing any one or more of
the following factors:
1. Change in ideas and beliefs
2. Change in feelings or emotions
3. Change in situation
4. Change in behaviour
BARRIERS TO CHANGING ATTITUDES
 Prior commitment
 Inadequate information
 Lack of choice
 Lack of choice
 Lack of Trust
 Unequal status in outcomes
 Lack of institutional support

OVERCOMING BARRIERS TO ATTITUDINAL CHANGE

Making available new information
Using Fear
Removing discrepancy[disagreement]
Impact exerted[apply] by friends or peers
Co-opting approach
Removing discrepancies
VALUES
A Value system is viewed as a relatively permanent perceptual framework
which influences the nature of an individual’s behaviour. A value may be defined as a
concept of a desirable, an internalised standard of evaluation a person possesses.
According to Milton Rokeach, “Values are global beliefs that guide actions
and judgements across a variety of situation”.
CHARACTERISTICS OF VALUES
 Part of culture
 Learned Responses
 Inculcated
 Social Phenomenon
 Gratifying Responses
 Adaptive process
SOURCES OF VALUES
Sources of values

Familial Factors Social Factors Personal Factors Cultural Factors

Religious Factors Life experiences Role demands Halo effect

TYPES OF VALUES
1. Terminal Values
2. Instrumental values

Terminal values (“ends”) Instrumental Values (“means’)

Comfortable life Ambition
Happiness: satisfaction in life Courage
Peace and harmony in the world Honesty
Prosperity; wealth Helpfulness
Sense of Accomplishment Independence

CLASSIFICATION OF VALUES
 Human values
 Social values
 Business values
 Community values
 Family values
 Professional values
 National values
 Secular values
 Spiritual values

IMPORTANCE OF VALUES
 Values effect individual’s thoughts and action
 Values influences employee’s motivation
 Values relate to belief system
 Values form core of identity
 Values works as unifying force
 Values influence attitude and behaviour
 Values creates credibility
 Values provides guidelines for decision-making and conflict resolution
PERCEPTIONS
Perception can be defined as a process by which individuals select,
organise, and interpret their sensory impressions, so as to give meaning to their
environment. People’s behaviour is influenced by their perception of reality, rather
than the actual reality.
According to Joseph Reitz, “perception includes all those processes by
which an individual receives information about the environment – seeing, hearing,
feeling, tasting and smelling”.

CHARACTERISTICS OF PERCEPTION
Intellectual process
Cognitive or psychological process
Subjective process
Lens providing worldview
Socially co-created
Culturally influenced
Self-Fulfilling
COMPONENTS OF PERCEPTION

Stimuli Attention Recognition Translation

1.Overt Environment Sensory and Mediators and Response
a. Physical Neural physical organisms organism
b. Socio- Mechanisms decision
cultural
c. Work-
relation
2. Convert or internal
Environment
a. Sensor
b. Self

Satisfaction Performance Behaviour

Expectation and Action Overt
performance Satisfaction Physical action
evaluation Reaction Mental state
Retrospection

IMPORTANCE OF PERCEPTION
Importance of perception

Facilitates understanding of Helps in behaviour prediction

Human behaviour

Determination of needs Effective subordinate dealing

FACTORS INFLUENCING PERCEPTION

1. Characteristics of the Perceiver(Internal factors)
a. Needs and motives
b. Self Concept
c. Beliefs
 d. Past Experience
e. Current psychological state
f. Expectations
2. Characteristics of the target or perceived (External Factors)
a. Size
b. Intensity
c. Frequency
d. Status
e. Contrast
3. Characteristics of the situation

PERCEPTUAL PROCESS
Perception is a process consists of several sub-processes. One can take an
input-throughput-output approach to understand the dynamic of the perceptual
process.

Exposure
Selection
Attention

Organisation

Categorisation
Interpretation
Inference

MANAGERIAL APPLICATIONS OF PERCEPTION

Managerial Application of Perception

Motivation Hiring
Performance Expectations Performance Appraisal
Employee Effort Employee Loyalty
Building Relationships Self-Assessment and Development

MANAGERIAL APPLICATIONS OF PERCEPTION

1. Motivation
2. Hiring
3. Performance Expectations
4. Performance Appraisal
5. Employee Effort
6. Employee Loyalty
7. Building Relationships
8. Self-Assessment and Development
IMPRESSION MANAGEMENT
Impression Management is a process people use to control the perceptions or
impressions about themselves, a bit like personal branding. Common self-presentation
methods include authentic, ideal or tactical styles of impression management.
According to Schelenher, “Impression management is defined as the conscious or
unconscious attempt to control images that are projected in real or imagined social
interactions”.
Purpose of Impression Management
a. Strategic Motives
i) Self-Promotion
ii) Exemplification
iii) Ingratiation
iv) Intimidation
v) Supplication
b. Expressive
Tactics of Impression Management
1. Ingratiation
2. Intimidation[pressure]
3. Self-Promotion
4. Exemplification
5. Supplication[request]

MOTIVATION
Motivation is derived from the word motive. Motive refers to the needs, wants,
drives, impulses within individuals. Motivation can be described as the driving force
within individuals that propels them to action.
According to S.P.Robbins, “Motivation is the willingness to exert high levels of
effort towards organisational goals, conditioned by the effort and ability to satisfy some
individual need”.
NATURE OF MOTIVATION
 Motivation is a psychological concept
 Motivation is a continuous process
 Motivation is dynamic and situational
 Motivation is not easily observed phenomenon
 Motivation is a goal-oriented process
 Motivation is influenced by social and cultural norms
 Entire individual is motivated
 Goals lead to motivation
IMPORTANCE OF MOTIVATION
 Motivation sets in motion the action of people
 Motivation improves the efficiency of work performance
 Ensures achievement of organisational goals
 Motivation creates friendly and supportive relationship
 Motivation leads to the stability in the workforce
 Acceptance of Organisational changes
TYPES OF MOTIVATION
1. Positive Versus Negative Motivation
a. Positive Motivation: Positive motivation involves identifying employee
potentialities and makes him realise the possible result by achieving his
potentialities.
b. Negative Motivation: Negative motivation, fear of consequences of doing
something or not doing something keeps the worker in the desired
direction.st utility.
2. Rational Versus Emotional Motivation
a. Rational Motivation: Traditionally the term rationality is associated with
persons who carefully weigh the pros and cons of all the alternatives and
then choose the one that gives them the greatest utility.
b. Emotional Motivation: As against this emotional motive are those goals,
which are selected on the basis of emotion’s involvement.
 3. Primary Motivation Versus Secondary Motivation
a. Primary Motivation: Primary motivations are basically related to human
needs for psychological satisfaction.
b. Secondary Motivation: Secondary motives is learned and realised as a result
of development . Secondary motives do not remain secondary in a developed
organisation, rather that become essential for moving the activities of
educated people.
4. Intrinsic Motivation Versus Extrinsic Motivation:
a. Intrinsic Motivation: It refers to motivation that comes from inside of an
individual rather than from any external or outside rewards, such as money
or grades.
b. Extrinsic Motivation: It refers to motivation that comes from outside an
individual. Extrinsic motivation entails a feeling of compulsion to do things
for an external source to achieve an outcome that satisfies usually lower-
order needs like money or survive.
5. Financial and Non-Financial Motivation/incentives:
a. Financial or Pecuniary Incentives: These are monetary in natures as they
involve flow of money from the organisation to its staff.
b. Non-pecuniary Incentives: Non pecuniary incentives do not involve much
financial commitments on the part of the organisation.

EFFECT OF MOTIVATION ON WORK BEHAVIOUR

Motivation is a term in organisational behaviour which leads the employee
inside the organisation to attain the specific goals and objectives.
 Job satisfaction through motivation and job performance
 Job satisfaction through motivation and Organisational Citizenship Behaviour
 Job satisfaction through motivation and customer satisfaction
 Job satisfaction through motivation and absenteeism
 Job satisfaction through motivation and turnover

THEORIES OF MOTIVATION:
Theories of Motivation

Maslow’s Need Hierarchy Theory Herzberg’s Two Factor Theory

Alderfer’s ERG Theory McGregor’s Theory X and Theory Y

1. Maslow’s Need Hierarchy Theory:
Basic needs are important for survival whereas acquired needs are not so
Important . A.H.Maslow solved this problem and presented a theory on priority order of
needs. Some important prepositions of Maslow’s need Priority model are as under.

Self Actualisation
(Self-fulfilment)

Esteem Needs or Ego needs

(Prestige, status, self respect)

Social Needs
(Affection, friendship, belonging)

Safety and security needs

(Protection, order, stability)

Basic Physiological needs

(Food, water, air, sex, shelter)
Maslow suggested the following points:
1. There are five levels of needs
2. All these needs are arranged in a hierarchy
3. A satisfied need is no longer a need
4. Once one level of need is satisfied, the next level of need will emerge as the
depressed needs seeking to be satisfied
5. The physiological and security needs are finite but the needs of higher order are
infinite

2. Herzberg’s Two factor Theory/Motivation Hygiene Theory

Herzberg in the late fifties developed a motivation theory known as
motivation hygiene theory or two-factor theory of motivation. He conducted a study
and interviewed some 200 engineers and accountants and asked them to think of a time
when they felt good at their jobs and a time when they felt bad at their job and then to
describe the condition which led to such feelings. The theory were classified by into
two categories.
a. Motivational Factors: These factor are related to the nature of work and are
intrinsic to the job itself.
b. Hygiene Factors/Maintenance Factors: Hygiene factors do not motivate
people. They produce no growth but prevent loss.
3. Alderfer’s ERG Theory:
The most popular extension and refinement of Maslow’s theory of needs
is the one proposed by Alderfer. Alderfer argued that the need categories could be
grouped into three more general classes:
a. Existence: These are needs related to human existence and are comparable to
Maslow’s physiological needs and certain of his safety needs.
b. Relatedness: These are needs that involve interpersonal relationships in the
workplace. Relatedness needs are similar to Maslow’s belongingness needs and
certain of his safety and esteem/ego needs.
c. Growth: These are needs associated with the development of the human
potential. Included in this category are needs corresponding to Maslow’s Self-
esteem and self-actualisation needs.

4. McGregor’s Theory X and Theory Y

Douglas McGregor proposed two distinct views of human beings, one
Basically negative, labelled Theory X, and the other basically positive, labelled Theory Y,
after viewing the way in which managers dealt with employees.

Assumptions of Theory X
1. Employees inherently dislike work and, whenever possible, will attempt to avoid
it
2. Since employees dislike work, they must be coerced, controlled, or threatened
with punishment to achieve goals
3. Employees will avoid responsibilities and seek formal direction whenever
possible.
4. Most workers place security above all other factors associated with work and
will display little ambition

Assumptions of Theory Y
1. Employees can view work as being as natural as rest or play
2. People will exercise self-direction and self-control if they are committed to the
objectives
3. The average person can learn to accept, even seek, responsibility
4. The ability to make innovative decisions is widely dispersed throughout the
population.
Distinction between X and Y Theories

Basis of Distinction X Theory Y Theory

Attitude towards work Most people have an Given proper environment,
inherent dislike for work most people would
willingly accept
responsibility and go in for
self-direction
Acceptance of Most people are not With proper motivation,
Responsibility ambitious, averse to most people would
accepting responsibility willingly accept
and prefer to be directed by responsibility and go in for
others self-direction
Creativity Most people lack creativity Creativity is not the
in resolving organisation monopoly of a few and in a
problem right environment people
can be made to display this
trait on a wide scale.
Motivation Only satisfaction of Satisfaction of physiological
physiological and safety and safety needs is not the
needs will motivate only source of motivation
workers
Control Close, often coercive, With proper motivation,
control is the only means to people may be self-directed
achieve organisational and creative.
objectives
Leadership Theory X emphasis Theory Y emphasises
Autocratic leadership democratic and supportive
leadership