BHARATI VIDYAPEETH

(Deemed to be University), Pune, India

CeNTRe foR disTaNCe aNd

oNliNe eduCaTioN

OrganizatiOnal BehaviOur

MBa / MBa (hr) / SeM - i (104)

Centre for distance and online education
Bharati Vidyapeeth
104 : ORGANIZATIONAL BEHAVIOUR
MBA, MBA(HR) SEM - I
(Deemed to be University), Pune, India

Writers Team

Author Unit No.

Dr. Pravin Mane 1 to 6

isBN : 978-81-936156-3-8
 CONTENTS

Unit Contents Page No.

Introduction to Organizational Behavior

1.1 Introduction
1.2 Elements of OB
1.3 Fundamental Concepts of OB
1.4 Evolution of OB
1 11-27
1.5 Contribution to OB By Major Behavioral Science Disciplines
1.6 Models of Organizational Behavior (OB)
1.7 Challenges and Opportunities For OB
1.8 Test Questions
1.9 Multiple Choice Questions

Individual Behavior
2.1 Introduction
2.2 Theories / Models of Learning
2.3 Principles of Learning
2.4 Perception
2.5 Factors Influencing Perceptual Mechanism
2.6 Perceptual Organization
2 28-52
2.7 Perceptual Errors
2.8 Attribution Theory
2.9 Job Satisfaction
2.10 Personality
2.11 Determinants of Personality
2.12 Measurement of Personality
2.13 Values - meaning, types of value

Motivation Concept to Application

3.1 Concept of Motivation:
3.2 Types of Motivation: Intrinsic and Extrinsic Motivation
3.3 Maslows Need Theory
3.3 Maslows Need Theory
3.4 Erg Theory
3 53-67
3.5 Theory (x) and Theory (y)
3.6 Herzberg’s Two-factor Theory of Motivation
3.7 Equity Theory
3.8 Vroom Expectancy Motivation Theory
3.9 Porter And Lawler Model of Motivation
3.10 Motivation in Organization
Unit Contents Page No.
Group Behaviour
4.1 Introduction
4.2 Define Group
4.3 Formation of Group:
4.4 Classification of Groups
4.5 Group Properties
4.6 Group Decision Making
4.7 Define Team
4 68-85
4.8 Team Building
4.9 Multi Disciplinary Team
4.10 Team Dynamics
4.11 Define Conflict
4.12 Outline Conflict Process
4.13 Conflict Management Techniques
4.14 Test Questions
4.15 Multiple Choice Questions
Leadership
5.1 Introduction
5.2 Concept of Leadership
5.3 Traits of a Good Leader
5.4 Difference Between Leader and Manager
5.5 Theories of Leadership
5.5.1 Ohio State and Michigan Studies
5 5.5.2 The Blake Mouton Managerial Grid 86-95
5.5.3 Likert's Model
5.5.4 3d-leadership Model
5.6 Managers As Leaders
5.7 Leadership Style : Kurt Lewin Proposed Three Major Leadership Styles
5.8 Future Perspectives of Leadership
5.9 Test Questions
5.10 Multiple Choice Questions
The Organization System
6.1 Introduction
6.2 Meaning of Stress
6.3 Types of Stress
6.4 Burnout
6.5 Strategies to Manage Stress
6 6.6 Workforce Diversity 96-102
6.6.1 Definition of Culture
6.6.2 Functions of Culture
6.6.3 Need of Cross-cultural Training
6.7 Organizational Change
6.8 Test Questions
6.9 Multiple Choice Questions
 Organizational
Behaviour

UNIT – 1 INTRODUCTION TO NOTES

ORGANIZATIONAL BEHAVIOR

After learning this unit you should be able to:

• Define OB, understand nature and its characteristics
• Know the elements of OB
• Understand the fundamental concepts of Ob
• Know the evolution of the concept
• Learn the contribution of various behavioural science
• Understand the model of OB
• Learn about the challenges and opportunities of OB

Contents
1.1 Introduction:
1.2 Elements of OB:
1.3 Fundamental Concepts of OB:
1.4 Evolution of OB
1.5 Contribution to OB by major behavioral science disciplines
1.6 Models of Organizational Behavior
1.7 Challenges and Opportunities for OB
1.8 Test Questions
1.9 Multiple Choice Questions

1.1 INTRODUCTION

Each one of us is surrounded by a network of people like friends, siblings,

parents or co-workers at work-place with whom we interact on daily basis. To
be successful and to be good human being it is expected to have a healthy
working relationship with people around us. These people if you notice, everyone
differs in terms of their personality and behavior.

Introduction To
Organizational
Behavior 11
 Organizational As a business management student we must be able to understand people’s
Behaviour behavior and attempt to use their potential for business growth. We must be able
to get answers to the questions like why do they behave as they do? If individuals,
groups and whole organizations work together can these people with their
NOTES
behavior would impact the progress of any of the organization? How can we
motivate the people to get maximum productivity? How can we lead them to
achieve our organizational goals?
These questions would be answered in subsequent chapters of
Organizational Behavior (OB). This book provides rich insights into people at
work in all kinds of situations and organizations.

Definition of Organizational Behaviour (OB)

OB is a study that analyzes and explains the behavior of the employees
acting as individuals and as groups in an organization. It uses the knowledge of
behaviour in effective management of human resources. OB brings together the
concepts, theories and research from a variety of disciplines, that may be useful
to people in making decisions about the behavior of employees. Let us understand
what is meant by an organization.
“Organization is the process of identifying and grouping work to be
performed, defining and delegating responsibility and authority and establishing
relationships for the purpose of enabling people to work most effectively together
in accomplishing objectives” – Louis Allen
“Organization is the form of every human association for attainment of a
common purpose” – Jones D Mooney
From above definitions we can understand that people come together
for attaining the common purpose and there is existence of certain relationship
for performing the work.

Now we shall understand the concept of behavior.

Every person has some or the other kind of need that generally motivates
or drives him to exert some kind of behavior. The specific goal may or may not
be consciously known by the individual. As the individuals hails from different
cultural and social background the motivational drive would have different
pattern which occur at subconscious level mind of the person.
The dictionary meaning of a behavior is the way in which someone acts or
conducts towards others.
The basic unit of behavior is an activity, a series of activities make a
behavior. A person has unique way of walking, talking and working. All these
activities put together forms a pattern of behavior which is a distinct way of
exhibition of an individual and understanding such a behavioral pattern is a
difficult process. HR managers try to compare the differences of the individual
employees and try to analyze in a certain situation as to why someone works
Introduction To harder than that of other and what are the motives, needs of the people which
Organizational evoke a certain action at a particular time.
12 Behavior
 The managers must understand, predict and control the activities of Organizational
employees so that they may increase the productivity and attain the Behaviour
organizational goals.
“Organizational behaviour is a field of study that investigates the impact NOTES
that individuals, groups and structure have on behavior within organization for
the purpose of applying such knowledge towards improving an organization’s
effectiveness” – Stephen Robbins.
“Organizational behavior is directly concerned with the understanding,
prediction and control of human
behavior in organizations” – Fred Luthans.
From the above definitions we can understand the features of OB as:
• It is a study about human behavior in organization.
• The knowledge of human behavior is useful in improving an
organization’s effectiveness.
• OB is the study of human behavior at workplace. The Characteristics of
Organizational Behaviour:
• Focus on people – OB focuses mainly on people. The technical
economical and structural elements are all related to the people.
• Improvement of people-organization relation – people live in
organizational setting wherein there exists relationship. So, OB attempts
to improve the organizational relations.
• Development of environment – OB helps to develop the
organizational environment to accomplish the organizational goals. The
study of OB helps managers to motivate the people and get greater
output.
• Team work – for improving teamwork both co-ordination and co-
operation of people is needed. OB suggests best way to get teamwork.
• Effectiveness of organization – both employees and organizations gain
higher benefits with minimum costs. OB helps to reduce the costs
incurred wastage of men, material. Thus it increases the effectiveness of
the organization.

1.2 ELEMENTS OF OB

The nature of OB states that it is a study of human behavior in the

organization and the organization itself. So the behavior of the employees and
the organization is influenced of business environment. Hence the key elements
in OB are people, structure in which they are inter-related, technology which
they adopt for the work and the environment in which the organization operates.
Introduction To
People: The People who work for the organization create the internal social
Organizational
system of the organization. They consist of individuals, groups. As people are Behavior 13
 Organizational thinking beings, their perception, thoughts, decisions, wants and needs will define
Behaviour the way the organization will exist and survive. The organizations exist for people
moreover to achieve their objectives and people serve the organizations to
achieve their own objectives. Thus there is mutual inter-dependence, co-relation.
NOTES
Structure: It defines the formal relationship of the people in an
organization. Various jobs are grouped and related to each other to accomplish
the organizational activities. This relationship creates the complex problems of
communication, co-operation, negotiation and decision making.
Technology: It provides the mechanics and processing flow for the work.
People depend on technology to accomplish their tasks. This provides benefit of
faster, superior work and productivity or sometimes acts as restriction, constraint
for their development.
Environment: All organizations operate within business environment,
which is a larger system containing various elements such as government, other
competitors, customers, intermediaries etc. They all mutually influence each
other in a complex system that creates a context for people’s attitude and working
conditions.

1.3 FUNDAMENTAL CONCEPTS OF OB

Every field has a philosophical foundation of basic concepts that guides its
development. OB deals with a set of fundamental concepts revolving around the
nature of the people and organization. They are as follows:
The nature of the people: As people forms the basic element of OB, we must
understand the basic assumptions about the people.
• Individual differences: Every individual is different or unique. This
idea of individual difference comes originally from psychology. Every
person has innate abilities of intelligence and skills. An individual also
develops his own perception and turns out to have different level of
motivation, decision making abilities and leadership qualities. Thus, an
individual has a unique set of qualities and unique behavioral pattern.
• A whole person: The organization wants only the skill of a person, but
employs the whole person.
Along with the skills of the person other characteristics are at work. An
individual’s work-life and family-life cannot be separated. So we can see
the inter-play of person’s physical, mental and emotional set-up in the
organization.
• Caused behavior: The behavior has its roots in certain causes. They are
related to their needs and desires, perception and it results into the action
which is observable. So to motivate people to certain action
organization’s make use of motivation techniques for improved work and
efficiency.
Introduction To
• Value of the person (Human dignity): Human dignity a philosophical
Organizational
concept is different form the above three concepts about the nature of the
14 Behavior
 people. As human beings are the highest order creation they should be Organizational
treated with respect and dignity. People are not like other factors of Behaviour
production. They are more important than other resources like land and
capital, deserve more to be treated respectfully.
NOTES
The second element is organization so we shall understand what makes
the nature of organization. The key assumption is organizations are social
systems and are formed on mutual interest of the people in it.
• Social system : We understand that organizations are social systems
wherein activities are governed by social laws as psychological laws. As
people have psychological needs, they do have social needs and they
possess social role and status. Their behavior is influenced by groups
they belong and their needs or drives. In an organization formal and
informal organizations exists side-by-side. The existence of such a social
system implies that the organizational environment undergoes complex
dynamics. The study of OB helps in understanding and analyzing such
systems and also helps to manage the systems.
• Mutual interest : You will agree to the statement that, “organizations
need people, and people need organizations” this states that organizations
are formed and maintained on the basis of mutual interest of the
administrator, stakeholders and employees. If all of them work in co-
ordination they would reach to the organizational goals and their
aspirations will be fruitful otherwise they all will fail. The result of such
non-co-operation will damage the entire organization and sustainability.
Holistic OB: We must interpret the holistic OB as whole group, whole
social system wherein all the efforts are directed to understand, interpret the group
behavior, its growth and success.
Importance of OB: Managers have to interact with a variety of people
from within the organization and outside the organizations like colleagues,
external agencies and subordinates. The understanding of their
differences, perceptions, personality, attitudes, group dynamics, culture, power
and politics help managers to handle such interactions more effectively. This
understanding not only helps internal environment management but also would
help to understand the global issues. Thus, manager would be equipped with
altogether different insights to take up challenges of management and
progress well.

So, OB’s study is important in following areas

• Understanding Human Behaviour OB is a tool to understand
people’s behavior. Different employees behave in different way as their
personalities differ. Manager has to understand each of these individuals
from various point of view as follows:
• Individual behavior – The behavior of individual is affected by
psychological, social and cultural factors. The aspects like attitude,
values, personality helps us to gauge the individual behavior. Introduction To
• Interpersonal behavior – OB also provide means to understand Organizational
Behavior 15
 Organizational interpersonal behavior in terms of socialization by study of perception,
Behaviour role analysis and transactional analysis.
• Group behavior – Hawthorne studies have proven that
NOTES individual behaves differently as group member. Such a behavior in
group has its impact on performance. Group formation, group dynamics,
leadership and decision making gives a better understanding of an
individual and their behavior in terms of group.
• Inter group behavior – Organizations consists of a large number of
groups, which leads to difficulty in overall management. So to understand
how groups can have increased co-operation, co-operation with other
group, we should have knowledge about inter group behavior.
• Influencing Human behavior – After understanding human behavior
in the organization, the next step is to influence the deviated behavior for
conforming to the standards required for achieving the organizational
objectives. The managers can use his skills in directing and
controlling behavior in following way:
• Leadership – Effective leadership enhances the survival and growth of
the organization.
A leader helps to realize organizational goals by tuning the employee’s
behavior. There are trait, goal and situational approaches for leadership
development. A competent leader uses resources at his disposal to the
best possible way.
• Motivation – Human beings work not only for money but also for their
satisfaction. The job of business manager in to get the work done through
others. He should have the knowledge of what motivates the people. The
study of OB provides the understanding of causes and consequences
motivation.
• Communication – communication is the building block of any
organization. Proper flow of communication across the organization helps
to realize the essential co-ordination among the workers.
• Use of power and politics – OB explains us as to how can manager make
use of power and politics to align the organizational goals with the
individual goals.
• Organizational Change Management – OB also provides with the
insights of various factors of business environment and ways to cope up
with them with the use of intervention strategies. The use of various
change and OD strategies at individual, group and organizational level
will ensure smooth conduct of business change management.

Introduction To
Organizational
16 Behavior
 Organizational
Behaviour
1.4 EVOLUTION OF OB
NOTES
Although the human relationships have existed since the beginning of time,
the art and science of trying to deal with them in complex organizations is
relatively new. In the early days, people worked alone or
In very small groups that their work relationships were easily handled. It
has been assumed that under these conditions, people worked very happily and
lead the satisfied life, but that is not true. Actual conditions were brutal and people
worked from morning to evening under intolerable conditions of disease, filth,
danger and scarcity of resources. They had to work this way to survive and very
little effort was devoted to their job satisfaction.
It was followed by the industrial revolution. In the beginning, the condition
of people did not improve but at least the seed was sown for potential
improvement. Industry developed and expanded the supply of goods and
improved techniques gave the workers increased wages, shorter work-hours and
more work satisfaction. Interest in the people at work was awakened by Frederick
W. Taylor in the USA in early 1900. He is also called the father of scientific
management. The changes he brought to management thought paved the way
for later development of OB. His work eventually led to improved recognition
and productivity for industrial workers. He stated that just as there was a best
machine for a job, so there would be best way for people to do their job. The
goal was technical efficiency. The management started giving importance to one
of its neglected resources ie human beings behind the machine.
In 1920’s and 1930’s, Elton Mayo and F.J. Roethlisberger at Harvard
University gave academic importance to the study of human behavior at work.
They applied keen insight, straight thinking and sociological background to the
industrial experiments at Western Electric Company, Hawthrone plant. They
concluded that an organization is a social system and the worker is indeed the
most important element in it. Their experiments showed that the worker is not a
simple tool but is a complex personality interacting in a group situation that often
is difficult to understand.
The May-Roethlisberger research been strongly criticized as being
inadequately controlled and interpreted, but its basic ideas, such as social system
within the work environment have stood to the test of time. The important point
is that it is a substantial research about human behavior at work and its influence
was widespread and enduring.
In 1940’s and 1950’s, other major research projects developed in a number
of organizations, including the Research Centre for Group Dynamics, university
for Michigan (leader and motivation), Tavistock Institute of Human Relations in Introduction To
London, the National Training Laboratories in Bethel, Maine (group dynamics). Organizational
As the result of these research began to filter into the business and academic Behavior 17
 Organizational community. It stimulated new interest in the behavior of people at work. Thus
Behaviour the age of human relations started.
The trend on people at work was a result such all initiatives over a long
NOTES period of time. It helped in bringing human values at par with other values
at work.
A major strength of OB is in its interdisciplinary nature as it integrates
behavioral sciences and other social sciences that can contribute to the subject.
Various ideas and fundamentals from these disciplines used for improving the
relationships between people and organizations.
The cult of various social sciences in people is referred by the general term
‘behavioral science’ which represents the systematized body of knowledge
pertaining to understanding human behavior. OB integrates behavioral science
with formal organizational studies analyzing ‘people without
organizations’ instead ‘organizations without people’. However, organizations
must have people and people working towards goals must be organized; so it is
desirable to treat both aspects a working unit, as OB does it in its studies.

1.5 CONTRIBUTION TO OB BY MAJOR BEHAVIORAL

SCIENCE DISCIPLINES

The field of OB has developed from the studies carried out by behavioral
scientists from psychology, sociology, social psychology, anthropology and
political science. The given figure describes the major contributions to the study
of OB by behavioral science.
• OB and psychology – psychology is the science that explains, measure
and change in the human behavior. It has a great influence on the field of
OB. Psychology is concerned with individual behavior, which can be
basis to understanding the intra-individual dynamics of human behavior.
The topics like motivation, personality, perception, attitude and learning
are the part of the OB study. Earlier industrial psychologists studied
the problems of fatigue, boredom and other factors relevant to
working conditions that could impede the work performance. Today, the
contributions have been to understanding and applying it to learning,
perception, personality, training, leadership, effectiveness, job
satisfaction, decision-making, attitude measurement, employee selection,
job design and work stress.
• OB and sociology – sociology is the study of group behavior. It describes
the behavior of the people in relation to their fellow human beings. Some
of the valuable input from this studies include group dynamics,
Introduction To
Organizational organizational culture, formal organization theory and structure,
18 Behavior communication power, conflict and intergroup behavior.
 Organizational
Behaviour

NOTES

• OB and Social psychology – social psychology uses the concepts from

psychology and sociology.
It focuses on the influence of people on one another. One of the
considerable contributions from social psychology is change law to
reduce its resistance and implement it successfully. Moreover, social
psychology is useful in measuring, understanding and changing attitudes,
communication patterns, the ways in which group activities can satisfy
individual needs and group decision making process.
• OB and anthropology – the field of anthropology studies the
relationship between individuals and their environment. Groups living
together create a body of shared ideas that are called culture. The culture
is reflected in their language, belief and work behavior. Culture
influences the way organizational members think about the organization
and how they should behave. Some more topics like allocation of power,
manipulation of power for individual self-interest, conflict, group
coalition are also interesting to understand contributing to the
organizational systems.
• OB and industrial psychology - Hugo Munsterbeg has immensely
contributed to the field of industrial psychology so he is known as ‘father
of industrial psychology’. He studied the psychology’s application in the
field of industrial management. He had suggested that industry can be
benefited by the study of psychology in following major areas:
a. Seeking modern/new ways to recruit the right person for the
right job
b. Achieving optimum efficiency of the people by identifying the
psychological conditions c. Finding ways to direct behavior of Introduction To
individual employees to be in harmony with the management’s Organizational
objectives and goals. Behavior 19
 Organizational
Behaviour
1.6 MODELS OF ORGANIZATIONAL BEHAVIOR (OB)
NOTES
Each organization differs from other in terms of quality of behavior that
they develop. These differences are caused by the unique way of management
styles and the culture they share. These differences or symptoms can easily be
understood or felt by observation. Each of the following models holds certain
assumptions of the people and unique way of management style that leads to
certain interpretation of events.

There are five models of OB.

• The Autocratic model – The model depends upon power. In an

autocratic environment, the managerial orientation is formal and
manager has official authority. This authority is delegated by
commanding management. The management believes in philosophy of
‘might is right’ and employee’s obligation is to follow orders. It
assumes that employees have to be directed, persuaded and pushed
into performance whereas management has to decide upon all the
strategies and all the policies of the organization. In such conditions, the
employee orientation is of obedience to the dictated terms and conditions
of the work. The management pays minimum wages because minimum
performance is given by the employees.
The autocratic model is a one of useful ways to accomplish work,
especially in the conditions of crisis. But the emerging management and
changing social values suggest that there are better ways to manage
organization. Eg. Defence services
• The custodial model – in the autocratic model, the employees are found
in job insecurity, frustration and aggregation towards their superior.
Introduction To The custodial model depends upon economic resources. The result of
Organizational managerial orientation is towards money to pay wages and benefits. Since
20 Behavior
 the physical needs of employees are met, the employer looks to security Organizational
needs as motivating factor. The custodial approach lead to dependence Behaviour
on the organization, hence there is reduced personal dependence on the
boss. Employees working in a custodial environment are found
NOTES
psychologically pre-occupied with their economic rewards and benefits.
Though they are not strongly motivated, we can observe the passive co-
operation to the work. The result tends to be much better as they are
treated better and fairly.
The custodial model emphasizes material rewards, security and
satisfaction to workers. Eg. Typical factories , Manufacturing units
• The supportive Model – This model depends upon leadership rather
than power or money as managerial aspect. Leadership can provide a
climate wherein employees feel connected, grow and accomplish in the
interest of the organization. The leader here assumes that workers are not
by nature passive and resistant to organizational needs but they are
made so by inappropriate climate at work-place. They may take
responsibility, develop a feeling to contribute and can improve to the best
possible if management gives them opportunity. Here we find
management’s orientation is to support the employee’s job performance,
rather than simply supporting employee’s benefits. As a result of such
managerial behavior is feeling of participation among the employees is
seen. The manager’s role is helping the employees to solve their problems
and accomplish their work.
Thus supportive model works well with both employees and managers,
and it has been widely accepted by managers in affluent nations rather
than developing nations. Eg. Services like banking, insurances
• The collegial Model – It is an extension of supportive model. The term
‘collegial’ relates to the body of persons having common purpose. It is a
team concept useful in research laboratories and similar work
environments. The collegial model depends on feeling of partnership
among the employees. Managers see the employees as joint contributors
to the success of the work. So the employees feel trusted and respond to
this with sense of responsibility of the task. The psychological result of
this approach is self-discipline for performance, worthwhile contribution
and self-actualization. Eg. Services like hospitals, education sector etc.
• The Systems model - The final and most contemporary organizational
model is referred to as the system model. The employees share the feeling
of trust and mutual dependence in the systems model. The management
and employees here are self-motivated and hence they feel
psychologically interconnected and take ownership of the task and to the
role assigned. The goals of the individuals are equally important as that
of goals of organization. In such organizations people work with passion
and committed to contribute to the highest extent. Eg. R&D units like
Introduction To
ISRO, NASA etc. Organizational
Behavior 21
 Organizational Managers in the Organizations
Behaviour
An Organization is a social system wherein people unite and try to achieve
their goals. Organizations are created by the people for the benefit of people. The
NOTES organized people provide goods and services that individual could not produce
for themselves alone. The organizations have need and purpose for its existence.
It acquires resources, use certain techniques and systems, attract people to work
for it and aspire for a set of objectives. For fulfillment of objectives, it divides
the work in the form of structure and departments. There exists co-ordination
and management of various activities in various departments that are lead by
certain positions and style of functioning.
Managerial work is full of challenges with complexity and unpredictability.
To understand the managerial role it is very useful to understand the functions
or activities performed by managers in an organization. These functions are
generally referred to as planning, organizing, leading and controlling.
Planning – it is the process of determining an organization’s desired things
and future position and the best way to getting there.
Organizing - it is the process of designing jobs, grouping them together
and establishing the patterns of authority, reporting mechanism between jobs
and units.
Leading – it is the process of getting the people to work for desired goals
and communicating, directing them about the work.
Controlling – it is the process of monitoring and correcting the people
towards the goal.
Similarly, organizations use many different resources for fulfilling the goals
and objectives. These resources are 4 Ms. Such as men, machine, material,
money. These resources are combined through basic functions of management
efficiently for effective goal attainment. The effective management depends upon
skill sets of the managers. Following are the core skills necessary for the success
of the organization.

MANAGERIAL ROLES
Managers are the people who plan, organize, lead, and control the activities
of the organization so that its goals can be achieved. Managerial roles talks about
the roles managers play in the organization. Henry Mintzberg identified three
major roles of a manager as follows:

In interpersonal roles, the manager is responsible for managing relationships

Introduction To
within and outside the organization. The manager must play a role as a
Organizational
22 Behavior figurehead, a leader and a liaison. In informational roles, the manager is
responsible for gathering and distributing information to the stakeholders of the Organizational
organization. Types of informational roles are monitor, disseminator, and Behaviour
spokesperson. Finally, in decisional roles, the manager is repon sible for
processing information and reaching conclusions. Types of decisional roles are
NOTES
entrepreneur, disturbance handler, resource allocator and negotiator.

MANAGERIAL SKILLS (MANAGEMENT SKILLS)

Every Manager has to perform his job well wherein he guides, motivates
and directs the subordinates to their jobs well. so the manager requires following
skill sets.

Conceptual skills- this means ability to analyse complex information,

enabling the organization to interpret the information from internal and external
environment to understand the implications of such information.
Human skills- this means working with other people effectively,
motivating, monitoring, guiding the people to improve their work.
Technical skills- this means ability to use different tools, techniques as well
as procedures in their field, ensuring the best products and services are rendered
to the customers.

1.7 CHALLENGES AND OPPORTUNITIES FOR OB

The present era presents new challenges as well as various opportunities

for managers. The rate of change is increasing and variety of innovations in
management techniques and tools can be seen in the workplace. For example
many female and young are joining the workforce; companies are downsizing
and are operating virtually. These issues are forcing the organizations to respond
to their needs. Some of the important issues are as follows:
• Managerial challenges
• Workplace issues and challenges
• Organizational challenges
• Global challenges Introduction To
• Environmental challenges Organizational
Behavior 23
 Organizational • Managerial Challenges- these are issues relating to OB from the point
Behaviour of view of OB managers
• Workforce diversity – organizations are becoming increasingly
NOTES cosmopolitan wherein people from different gender, race and ethnicity
forms heterogeneous background. The managers must note the
differences and learn to respect the diversity. The policies should shift
from treating everyone alike to recognizing differences and responding
to differences to retain the people and increase the productivity. Diverse
workforce can become a competitive advantage in following ways:
• It improves the quality of decision-making and team performance on
complex tasks.
• It becomes essential aspect to provide better customer service in the
global market.
• Workforce diversity brings new challenges with respect of
communication, team dynamics and dysfunctional conflict.
• If managed properly, can lead to creativity and innovation of ideas.
• Changing demographics of workforce – it relates to following
• Dual career couples – Dual career couple poses the problems of
relocation which hinders the flexibility in accepting transfers within the
organizations.
• Growing number of youngsters – younger people about the age of 25
(Generation – X) are entering to workforce who are more enthusiastic
and innovative. Their aspirations and achievements are totally different
than that of baby-boomers. So, they have to be handled differently.
• Gender factor – earlier women used to take up traditional careers like
being nurses & teachers. But, now women are experimenting and moving
into varied jobs. These developments have different implications for HR
managers.
• Workplace issues and challenges – these issues are of behavioral
implications at workplace.
• Employee privacy – employers now sometimes intrude too much in
private lives of the employees. For example, tapping the phone lines,
random check on internet surfing, background check etc. The managers
have to be very sensitive because employees may rebuff about companies
policies.
• Employee rights – some the concerns like marrying within the
organization, uniform dress code are controversial that are recently been
surfaced should be limited and banned.
Introduction To • Unionism – the union membership in recent years is seen to be declining.
Organizational The services which were offered by unions should now be borne by
24 Behavior
 organization with extra precautions to ensure that workers being treated Organizational
fairly otherwise the trend of joining union would restart again. Behaviour

• Changing employee expectations – traditional motivators like job

security, pay package no more retain the workers. Employees expect NOTES
empowerment, status and participative management along with flexi-
time, work from home options.
• Organizational challenges – these challenges are organizational level
and are major ones.
• Improving quality and productivity – after privatization and
liberalization organizations are facing cut-throat competition. In such
scenario to succeed managers must improve the quality and productivity
in their organization. The tools like Total Quality Management (TQM)
Business Reengineering implementation have their behavioral
implications.
• Managing technology and innovations – in the competitive scenario
it’s a significant challenge to keep the pace with the technology. We need
to ensure improvement in quality to out beat competitors with innovative
products and services. It is difficult to stimulate employee creativity and
tolerance for change management.
• Coping with temporariness – the young generation keeps changing the
jobs, for them continuous improvement is change. To handle state of flux,
organizations must restructure and manager must learn to live with
temporariness. OB helps in providing important insights in management
of such a changing culture.
• Ethical behavior – it is a duty of a manager to create ethically healthy
climate, free of bribery, sabotage, corruption organizations where
employees can do their work and contribute to social environment.
• Global challenges – these are global issues relating to following:
• Managing global environment – internationalization of business has
drastically changed the shape of the business organization. The managers
must learn to be flexible and proactive the face these international
challenges.
• Managing cultural diversity – managers must also learn to face the
cultural and legal differences of various countries. The workforce from
diverse background will have different needs and attitudes.
• Environmental challenges – every organization is surrounded by
external environment made up of customers, competitors, government,
suppliers and natural environment. Organization has to be responsive to
these challenges. Following are the specific environmental challenges:
• Ecology- every organization must face the challenge to maintain and
Introduction To
create ecological standards as it provides the inputs needed for creating
Organizational
goods in the form of mineral resources.
Behavior 25
 Organizational • Personnel policies – personnel policies should not be discriminatory in
Behaviour nature. All the people from any caste, creed, race, religion, should get
equal opportunities and fair treatment.
NOTES • Consumerism – consumer’s welfare should be kept in mind before
marketing policies are prepared.
• Research and development – organizations also contribute to the
research and development activities to keep itself with the pace of global
challenge.
• National policies – government tries to balance the inflationary
trend and social development. Our organization should contribute to
such policies by promoting our policies in tune with national policies.

1.8 TEST QUESTIONS

• Define OB. Explain the characteristics of OB study.

• Discuss the key elements of OB.
• Differentiate between the models of organizational behavior
• Explain various challenges and opportunities of OB

1.9 MULTIPLE CHOICE QUESTIONS

1. What does OB stand for?

(a) Organizational Business (b) Organizational Behaviour
(c) Organizing Behaviour (d) Organizing Business
Answer b

2. The four main dimensions which influence behaviour in work

organisations are:
(a) individual, organisation, group, gender
(b) Individual, group, organisation, environment
(c) Group, environment, organisation, gender
(d) Environment, group, individual, gender
Answer b

Introduction To
Organizational
26 Behavior
3. The main contribution of psychology to Organisational Behaviour is Organizational
the study of: Behaviour
(a) Personality, attitudes, perceptions and motives
(b) Social structures and relationships NOTES

(c) Social beliefs, customs and values

(d) Philosophy and ethics of human activity
Answer a

4. Which of the following is not an influence on behaviour in work

organisations?
(a) The environment (b) The group
(c) The individual (d) None of the above

Introduction To
Organizational
Behavior 27
 Organizational
Behaviour

NOTES
UNIT – 2 INDIVIDUAL BEHAVIOR

After learning this unit you should be able to

• Understand the concept of Learning
• Know about the perception
• Learn about attribution, Job satisfaction
• Know about the personality

Contents
2.1 Introduction
2.2 Theories / Models of learning
2.3 Principles of Learning
2.4 Perception
2.5 Factors influencing perceptual mechanism
2.6 Perceptual Organization
2.7 Perceptual Errors
2.8 Attribution Theory
2.9 Job Satisfaction
2.10 Personality
2.11 Determinants of Personality
2.12 Measurement of Personality
2.13 Questions

2.1 INTRODUCTION

The employees must follow the accepted behavioral pattern and give up the
unwanted one to be cordial and co-operative member of the organization.
Learning is said to be relatively permanent change in behavior. In the following
paragraphs we will understand the meaning of learning and its process.
Learning is acquiring new knowledge, behavior, skill and values. Learning
is a change in behavior through education, training, practice and experience. It
is accompanied by acquisition of knowledge, skills and expertise that are
relatively permanent. Temporary changes in behavior may only be reflexive and
do not incorporate learning. If the practice and experience is not reinforced the
temporary changes in behavior, it would eventually disappear. So reinforcement
strengthens and intensifies the aspects of learnt behavior. The behavior may
include the series of complex coordinated physical and or mental abilities so that
they can be recalled at any particular situation.
INDIVIDUAL
28 BEHAVIOR
Definition Organizational
Behaviour
“Learning is the process by which new behavior are acquired. It is generally
agreed that learning involves changes in behavior. Practicing new behaviors and
establishing permanaency in the change” NOTES
“Learning has taken place if an individual behaves, reacts, respond as a
result of experience in a manner different from the way he formerly behaved” –
W. McGehee.

Nature, Features & Characteristics of Learning

• Learning involves change. This may be good or bad from an
organizational point of view. People can learn unfavorable behaviors as
well favorable behaviors.
• The change must be relatively permanent. Temporary changes may be
only reflexive and fail to represent any learning.
• Learning takes place when there is a change in actions. A change in an
individual’s thought processes or attitudes, if accompanied by no change
in behavior, would not be learning.
• Some form of experience is necessary for learning. This may be
required directly thought observation or practice or it may result from
indirect experience such as those acquired through reading.
• Learning occurs throughout one’s life and hence it is a continuous
process.
• The practice of experience must be reinforced in order for learning to
occur. If reinforcement does not accompany the practice or experience,
the temporary learnt behavior will disappear and hence learning would
not be there.

2.2 THEORIES / MODELS OF LEARNING

There are four types of theories that explain the process by which we acquire
learning or pattern of behavior. These are as follows :

INDIVIDUAL
BEHAVIOR 29
 Organizational • Conditioning theories
Behaviour
• Classical conditioning – Classical conditioning states that behavior is
learnt by repetitive association between stimulus and a response. It is also
NOTES called respondent conditioning or reflexive conditioning because the
conditioned responses are innate reflexive responses. The organism learns
to transfer a response from one stimulus to a previously neutral stimulus.
Classical conditioning grew out of experiments to teach dog to salivate in
response to ringing of the bell, conducted by Russian psychologist, Ivan Pavlov.
A simple surgical procedure allowed Pavlov to measure accurately the
amount of saliva secreted by a dog. When Pavlov presented the dog with a piece
of meat, the dog exhibited a noticeable increase in salivation. When Pavlov
withheld the presentation of meat and simply rang a bell, the dog had no
salivation. Then Pavlov proceeded to link the meat and the ringing of the bell.
After repeated hearing the bell before getting the food, the dog began to salivate
nearly at the sound of the bell even if no food was offered. In effect, the dog
learnt to respond, that is to salivate to the bell.
The meat was an unconditioned stimulus. It invariably caused the dog to
react in a specific way. The reaction, that took place whenever the unconditioned
stimulus occurred, was unconditioned response. The bell was the
artificial stimulus or conditioned stimulus. While it was originally neutral when
the bell was paired with the meat (an unconditioned stimulus), it eventually
produced a response when presented alone. It is the conditioned response. This
describes the behavior of the dog salivating in reaction to the bell alone.

Four elements are always present in classical conditioning these are:

• Unconditioned stimulus (US) – like food which invariably causes to
react in a certain way. i.e. salivation
• Unconditioned response (UR) – takes place whenever the US is
presented. i.e. whenever the organism is given food, it salivates.
• Conditioned stimulus (CS) – the object does not initially bring about
the desired response like the sound of the ball.
• Conditioned response (CR) – a particular behavior that the organism
learns to produce to the CS i.e. salivation
Classical conditioning is passive. Something happens and we behave in
a specific way. It is elicited in response to a specific, identifiable event.
As such it can explain simple reflexive behaviors. But most behaviors,
particularly the complex behavior of individuals in organization, is
emitted rather than elicited. It is voluntary rather than reflexive.
• Operant conditioning - Operant is defined as behavior that
produces effects. Operant conditioning proposed by B.F. Skinner,
suggests that individuals emit responses that are rewarded and will not
emit responses that not rewarded or punished. Thus, operant conditioning
is the process of modifying behavior through the use of positive or
INDIVIDUAL negative consequences subsequent to specific behavior. The basic
30 BEHAVIOR
 principles of operant involves the relationship between 3 elements. Organizational
Behaviour
• Stimulus situation
• Behavioral response to the situation
NOTES
• Consequence of the response to the person
It is basically assumed that man’s behavior is determined by environment
and the individuals learn by producing alteration in their environment. It
presupposes that human beings explore their environment and act upon it.
A simple example of the operant conditioning is as follows :
A schoolteacher awards points to those students who are the most calm and
well-behaved. Students eventually realize that when they voluntarily become
quieter and better behaved, that they earn more points.
Implications of operant conditioning – Operant conditioning has greater
impact on human learning than classical conditioning. As most behaviors in
organizations are learned, controlled and attested by consequences. Management
can make use of operant conditioning to control and influence the behavior
of employees by designing the suitable reward/punishment system.
• Cognitive learning theory – It is based on cognitive model of human
behavior. It emphasizes on the free will and positive aspects of human
behavior. Cognition refers to the individual’s thoughts, feelings, ideas,
knowledge and understanding about himself and the environment. Thus,
an organism applies this cognition in learning which results in not merely
the response to a stimulus, but the application of internal image of
the external environment, so as to accomplish the goal. Edward
Tolman has significantly contributed to this theory. According to him,
individuals not only respond to stimuli but also act on beliefs, thoughts,
attitudes, feelings and strive towards goals. In other words, An individual
creates a cognitive map in his mind, i.e. an image of the external
environment, preserves and organizes information gathered, as a result
of the consequences of events encountered during the learning process.
Thus, the organism learns about the event and objects on the basis of a
meaning assigned to stimuli.
Tolman has conducted an experiment to elucidate the cognitive learning
theory. He trained a rat to turn right in the ‘T’ maze in order to obtain food. One
day, he started a rat from the opposite part of the maze, according to the operant
conditioning theory, the rat should have turned right due to the past conditioning,
but instead, it turned towards where the food was kept. Thus, Tolman concluded
that rat formed a cognitive map in its mind to figure out where the food has been
placed, and reinforcement was not a precondition for learning to take place.
The example of cognitive learning is seen to be used by teachers to
efficiently transmit knowledge to the students. as, for instance, some students
learn better by watching, others by listening, others by writing, and others by
doing. Knowing this, and identifying which students are which, a good teacher
will take these approaches into account and more efficiently transmit knowledge
to the students. INDIVIDUAL
BEHAVIOR 31
 Organizational • Social Learning theory – Social learning theory explains human
Behaviour behavior in terms of continuous reciprocal interaction between cognitive,
behavioral, and environmental influences. This theory is proposed by
Albert Bandura. According to him, People learn through observing
NOTES
others’ behavior, attitudes, and outcomes of those behaviors. He
says, “Most human behavior is learned observationally through
modeling: from observing others, one forms an idea of how new
behaviors are performed, and on later occasions this coded information
serves as a guide for action.”
In social learning, a person starts displaying his/her behavior like that of
someone else ie model. For example, if a person who gets promoted to a
new job/position may imitate his/her predecessor. Usually, the influence
that a model will have on an individual is determined by the following
four processes.
• Attention — various factors increase or decrease the amount of
attention paid. Includes distinctiveness, affective valence, prevalence,
complexity, functional value. One’s characteristics (e.g. sensory
capacities, arousal level, perceptual set, past reinforcement) affect
attention.
• Retention — remembering what you paid attention to. Includes
symbolic coding, mental images, cognitive organization, symbolic
rehearsal, motor rehearsal
• Reproduction — reproducing the image. Including physical capabilities,
and self-observation of reproduction.
• Motivation — having a good reason to imitate. Includes motives such
as past (i.e. traditional behaviorism), promised (imagined incentives) and
vicarious (seeing and recalling the reinforced model)
• Reinforcement theory – The individuals feel motivated to exhibit the
modeled behavior if positive incentives or rewards are provided. The
behavior positively reinforced will be given more attention, learned better
and performed more often.
Reinforcement is defined by the effect that it has on behavior—it
increases or strengthens the response. It can be achieved by providing
specific tangible rewards, events, and situations. Its major objective is to
increase or decrease the rate of certain desired/ undesired behavior from
occurring again. the individual gets encouraged to perform the behavior
in a repeated manner
• whether to avoid any undesirable stimulus
• receive the desirable reinforcer or reward again
• Positive Reinforcement – this strategy entrails the use of rewards that
stimulus desired behavior and strengthen the probability of repeating such
behavior in the future. A positive consequence is called a reward and
INDIVIDUAL
reward should match with the needs of a worker.
32 BEHAVIOR
 • Negative reinforcement – this takes place when individuals learn to Organizational
avoid or escape from unpleasant consequences. Obeying to law and order Behaviour
in our society is based on this theory. As people want to avoid the evils
or accidents they learn to drive carefully.
NOTES

2.3 PRINCIPLES OF LEARNING

Though learning is complex activity, it can be governed by the following

principles:
• Feedback – learning is more effective when both the learner and
instructor are in two-way communication. The feedback can be used for
betterment.
• Active learning – if the learner is quick and actively involved both
mentally and physically learning will be smoother and faster.
• Reinforcement – learning when rewarded is more likely to be retained.
• Meaningful material – the material supplied to the learner should be
meaning and easy to understand.
• Multi-media learning – use of multi-media including appeal to two or
more senses brings effective learning.
• Recency – learner are able to recall those things that they learn first and
last in the sequence.
• Reinforcement - Reinforcement theory proposes that you can
change someone's behavior by using reinforcement, punishment, and
extinction. Rewards are used to reinforce the behavior you want and
punishments are used to prevent the behavior you do not want. Extinction
is a means to stop someone from performing a learned behavior.
Reinforcement theory is the process of shaping behavior by controlling
the consequences of the behavior. In reinforcement theory a combination of
rewards and/or punishments is used to reinforce desired behavior or extinguish
unwanted behavior.
There are two types of reinforcement: positive and negative.
Positive reinforcement results when the occurrence of a valued behavioral
consequence has the effect of strengthening the probability of the behavior being
repeated. The specific behavioral consequence is called a reinforcer. An example
of positive reinforcement might be a salesperson that exerts extra effort to meet
a sales quota (behavior) and is then rewarded with a bonus (positive reinforcer).
The administration of the positive reinforcer should make it more likely that the
salesperson will continue to exert the necessary effort in the future.
Negative reinforcement results when an undesirable behavioral
consequence is withheld, with the effect of strengthening the probability of the
behavior being repeated. Negative reinforcement is often confused with INDIVIDUAL
punishment, but they are not the same. BEHAVIOR 33
 Organizational Punishment attempts to decrease the probability of specific behaviors;
Behaviour negative reinforcement attempts to increase desired behavior. Thus, both
positive and negative reinforcement have the effect of increasing the
probability that a particular behavior will be learned and repeated.
NOTES
As mentioned above, punishment attempts to decrease the probability of
specific behaviors being exhibited. Punishment is the administration of an
undesirable behavioral consequence in order to reduce the occurrence of the
unwanted behavior.
Extinction is similar to punishment in that its purpose is to reduce unwanted
behavior. The process of extinction begins when a valued behavioral consequence
is withheld in order to decrease the probability that a learned behavior will
continue. Over time, this is likely to result in the ceasing of that behavior.
Extinction may alternately serve to reduce a wanted behavior, such as when a
positive reinforcer is no longer offered when a desirable behavior occurs. For
example, if an employee is continually praised for the promptness in which he
completes his work for several months, but receives no praise in subsequent
months for such behavior, his desirable behaviors may diminish.

2.4 PERCEPTION

Perception is defined as the process through which the information from

external environment is selected, received, organized and interpreted to make
it meaningful. The meaningful information results in reasonable decisions and
actions.
Perception is a cognitive process. Everyone has their own way of looking
at and analyzing the things around them. Perception is an important part of
OB because people’s behavior is based on their perception of what reality is
and is the way they interpret themselves.
According to Robbins, “Perception is a process by which individuals
organize and interpret their sensory impressions in order to give meaning to their
environment”.
“Perception can be defined as the process of receiving, selecting, organizing,
interpreting, checking and reacting to sensory stimuli or data” – Udai Pareek
Perception is an intellectual process. It has inbuilt subjectivity as different
people perceive environment in a different manner. The subjectively perceived
“reality in a given setting” may be different for different people. It is both a
physiological as well as psychological process because it includes not only what
we see but is much more complex. It involves absorption of selected stimuli, its
cognitive organization and interpretation to make an assessment of what is going
on in the environment.

According to Kolasa, it has two basic elements

INDIVIDUAL • Perception is the process of selection or screening which prevents us from

34 BEHAVIOR processing irrelevant or disruptive information.
 • There is organization implying that the information which is processed Organizational
has to be ordered and classified in some logical manner which permits Behaviour
us to assign meaning to the stimulus situations.
NOTES
Importance of Perception in OB
Everyone must understand the role of perception in an organization because
it gives clearity of the task to be performed, its importance in terms of other
associated tasks and also the way we should be behaving with others in terrms
of expectations of the task or job given. this even helps in understanding the need
for co-operating with each other in organizational set-up.
For example, every member in a group has to be clear regarding the role
allotted to them. Programmer writes the code, tester checks it, etc.

2.5 FACTORS INFLUENCING PERCEPTUAL MECHANISM

Perception is our sensory experience of the world around us and involves

both the recognition of environmental stimuli and action in response to
these stimuli.
A number of factors operate to shape and sometimes distort perception
These factors can reside: In the perceiver
In the Object or target being perceived or
iii) In the context of the situation in which the perception is made.
1. Characteristics of the Perceiver - this means the person who tries to
perceive the thing or object his own characteristics inflence the
perceptual process. they are as follows:
1. attitudes
2. motives
3. self concept
4. interest
5. cognitive structure &
6. expectations further,
if one knows himself accurately perceives others accurately, his own
characteristics affect the way they see others, if he accept himself tends to see
favorable aspects of others.
2. Characteristics of the Object/Target - the physical attributes and
communication skills of the object to be perceived affects the way we
perceive the object. Attractive individuals are noticed easily by others
than that of the ordinary looking individuals. the motion, sound, size
such physical attributes also influence the way to see the object/target.
INDIVIDUAL
BEHAVIOR 35
 Organizational 3. Characteristics of the situation - it is the situation under which the
Behaviour perceiver perceives the object or target. The surrounding situation like
physical settings of day/night, climatic conditions, regional and
cultural setting etc. affects the way overall perception occurs.
NOTES

Perceptional Process

Perception is the process of receiving, selecting, organizing and interpreting

the environmental stimuli. This simplified process of perception in fig:
The following figure presents the comprehensive view of the
perceptual process.

Perceptual input/stimuli - it may be in the form of objects, event and

people. any event can be termed as perceptual input. the characteristic features
of this event/objects may further affect the selection of the stimuli to the
perceiver. When a perceiver having his own characteristic features interacts with
the stimulus under the given circumstances of situation, the process of
perception begins.
Perceptual Mechanism: Perceptual mechanism involves three
elements- selection of stimuli, organization of stimuli, and interpretation of
stimuli.
Selection of stimuli: after receiving the stimuli a few are selected for
further processing. it may have a cue from the event/object to be perceived that
is appealed to the perceiver.
Organization of Stimuli: After the stimuli are received, these are organized
in some form in order to make sense out of that. The various forms of organizing
stimuli are figure-ground perceptual grouping, simplification, and closer.
INDIVIDUAL Interpretation of stimuli - once the perceptual input gets organized
36 BEHAVIOR it will be interpreted by the perceiver to make sense and he associates the
meaning to the event and object. perceiver interprets the things as good or bad. Organizational
He forms a kind of attitude towards to the event. the whole process of perception Behaviour
is affected by the characteristics of the stimuli, environmental/situational
characteristics and the object or events characteristics.
NOTES
Perceptual outputs - the output of the perception ends with the
interpretation of the stimuli. the output may be in the form of action forms a
attitude, belief, impression and affect the human behavior.

2.6 PERCEPTUAL ORGANIZATION

Figure-ground - perceived objects stand seperate from their background.

in the organizational setting the example of new technology is easily noticed but
the competition in the market for which such technology is been installed in not
noticed easily.
perceptual grouping - people have a tendency to group several stimuli
together into a recognizable pattern. the following are the types of perceptual
grouping
closure - individual perceives a whole though actually does not exist.
continuity - individual perceives a continuous figure of line/pattern.
proximity - a group of stimuli that are close will be perceived as a whole
pattern of parts belonging together.
similarity - greater the similarity of stimuli, the greater would be tendency
to perceive as a common group.
perceptual constancy - objective reality may remain unchange, people's
subjective reality remains constant i.e. the individual is likely to interpret the
meaning of stimuli in the same way unless and until objective reality is revealed
more broadly.
perceputal context - it is situational basis that gives meaning and value to
simple stimuli in the environment.

2.7 PERCEPTUAL ERRORS

People make countless perceptual errors many a times. These are as follows:
Accuracy of judgement (pigeon holing)
1. similarity error - people are biased about the others having similar traits,
social background, economic background and for cultural background.
2. contrast error - people compare the available resources and arrive at the
conclusion which may be contrasting from the reality.
3. Race/Gender/Age bias- people's interpretation is affected by their INDIVIDUAL
prejudices of race, gender and age. BEHAVIOR 37
 Organizational 4. First impression error- first impression last longer in the minds
Behaviour of people.
Perceptual defense - once established, a person's way of looking at the
NOTES others may become highly difficult to change. thus, perceptual defense may
have negative consequences. it may result into inability to look at things and
solve them creatively.
stereotyping- it is the belief that members of a specific groups have similar
traits and behavior pattern. eg. professors forget the things. Accountants talk only
numbers.
Halo effect - it means judging a person on the basis of a single trait.
this occurs in performance appraisals where manager rates the employee on the
basis of only one trait of punctuality, appearance & communication skills etc.
Projection - it means tendency of a person to see his own traits in others,
projecting their own feelings personality characteristics like own
attitutes and motives into others.

2.8 ATTRIBUTION THEORY

“Attribution theory deals with how the social perceiver uses information to
arrive at causal explanations for events. It examines what information is gathered
and how it is combined to form a causal judgment” (Fiske, & Taylor, 1991)
The Attribution theory is about why and how people explain the events as
they occur. people try to see the cause and effect relationship though there may
not be any.
Internal attribution - is the process of assigning the cause of behavior to
internal characteristic than to the outside forces. when we explain the behavior
of others we look for the internal attributes of the person like his personal
characteristics, motive and his beliefs etc. whereas the external attribution is
assigning the cause to outside event rather uncontrollable aspect such as situation
or to environment existing.
Kelley's Theory - Kelley developed a model for judging whether a
particular action should be attributed to some internal characteristics of the person
or to the environement.
He suggests that in understanding the causes of behavior of the people they
take into account three kinds of evidences.
1. consensus - this means the extent to which other people in given the
situation will behave in similar way.
2. distinctiveness - it is the extent to which the person behaves in the same
way in similar situations.
3. consistency - it is the extent to which the person behaves like this every
INDIVIDUAL time the situation occurs.
38 BEHAVIOR
 Let’s look at an example to help understand his particular attribution theory. Organizational
Our subject is called Ram. His behavior is being punctual to the work. Behaviour
1. consensus - on that day everyone was late to the work. consensus is high.
2. distinctiveness - Ram is only person who is always punctual to NOTES
work. distinctiveness is high. if everyone is punctual the distinctiveness
is low.
3. consistency - Ram always is punctual to every activity and the work.
consistency is high. Ram rarely is punctual to every activity and work
then consistency is low.
Now on a particular day if Ram came late then people may tend to see other
reason like traffic, late bus arrival etc. being reason for Ram to be late for work
else they may see Ram as a habitual late comer to the work.

Attitudes
Attitudes are evaluative statements – either favorable or unfavorable –
concerning objects, people or events. They reflect how one feels about something.
Attitude is the bend of one’s mind towards an object or subject. It involves
liking or disliking people, work and objects. Attitude is developed through
learning from family, society and nationality. It is a combination of popular belief
and interest.

Definition
“A predisposition or a tendency to respond positively or negatively towards
a certain idea, object, person, or situation” – Stephen Robbins
“Attitudes are learned predispositions towards aspects of our environment.
They may be positively or negatively directed towards certain people, service or
institutions” – N. L. Munn
Attitude influences an individual's choice of action, and responses to
challenges, incentives, and rewards (together called stimuli). major aspects of
attitude are -
• Affective: emotions or feelings.
• Cognitive: belief or opinions held consciously.
• Conative: inclination for action.
• Evaluative: positive or negative response to stimuli. Components of
attitudes - attitudes comprise of three components - Cognitive, Affective
and Behavioral
1. Cognitive component - this component consists of beliefs, values and
ideas about the things or objects that a person carries with him.
2. Affective component - this component involves the feeling about the
things or objects. it may be positive or negative.
3. Behavioural component - this component consists of the behavioural
INDIVIDUAL
reaction towards the thing or object for which person holds the attitude.
BEHAVIOR 39
 Organizational The components are illustrated in the following table
Behaviour

NOTES

Formation/Sources of Attitudes
As attitudes refer to the feelings and beliefs of people or group we must
understand as how are they formed. they are not inherited but are acquired.
1. direct personal experience - the personal experience may be favorable
or unfavorable will affect and form the attitude and person changes his
attitude towards that incident.
2. association - when a person comes across or joins a group, having a
particular attitude gets the attitude from the associated member or a
group.
3. family and peer groups - we observe our parents, family and friends
and shape up our attitudes towards certain things.
4. economic status and occupations - our economic status and
occupational positions also affect our attitudes.
5. mass communication - news papers, journals & television provide us
with a lot of information. the way the messages are communicated forms
our attitudes towards certain product, services, political parties and other
things.

2.9 JOB SATISFACTION

Job satisfaction is a set of favorable or unfavorable feelings with which the

employees view their work. It is a feeling of relative pleasure or pain. It refers to
the attitudes of a single employee. It is dynamic nature as it can decline even
more quickly than it develops. So, managers should establish the conditions
leading to employee job satisfaction. Job satisfaction is often determined by how
well outcomes meet or exceed expectations. Satisfaction in one’s job means
increased commitment in the fulfillment of formal requirement. There s greater
INDIVIDUAL willingness to invest personal energy and time in job performance. It is one of
40 BEHAVIOR
the most important and widely studied concepts in the field of OB, as it is closely Organizational
related with many phenomena such as motivation, performance, leadership, Behaviour
conflict and moral etc
NOTES
It has three important dimensions
• It is an emotional response to a job. This response cannot be seen, it can
only be inferred.
• It is dependent upon the extent to which outcomes meet the expectations
from the job an employee has.
• It reflects other attitudes of employees. Definition –
“Job statisfaction is the difference between the amount of rewards the
workers receive and the amount they believe they should receive and it is an
individual general attitude towards his or her job” – Stephen Robbins.
“Job satisfaction is defined as favorableness or unfavorableness with which
the employees view their work and results when there is a fit between job
characteristic and wants of the employees” – Keith Davis

The outcomes of job satisfaction are as follows

1. Job satisfaction and productivity are co-related with each other.
2. Job satisfaction also helps to reduce employee turnover.
3. Job satisfaction lowers the abenteeism rate.
4. Job satisfaction improves the morale of the employees.
• Job Commitment – it is feeling of sense of responsibility
towards the organizational goal and mission. If an employee is
committed he performs the given task and accomplishes it with
responsibility and help organization to achieve its goal.
• Job Involvement – It refers to employees emotional and
psychological participation in his profession and company where
he works.

INDIVIDUAL
BEHAVIOR 41
 Organizational
Behaviour
2.10 PERSONALITY
NOTES
The term personality has been derived from latin word “personnare’ which
means ‘mask’ to speak through. Personality traditionally refers to how people
influence others through their external appearance and actions more precisely.
Moreover, personality is the impression we make on others; the mask we present
to the world. Personality is defined as "a unique set of traits and characteristics,
relatively stable over time." Clearly, personality is unique insofar as each of us
has our own personality, different from any other person's. The definition further
suggests that personality does not change from day to day. Over the short-term,
our personalities are relatively set or stable. However, definition does not suggest
that personality is somehow rigid, unchangeable, and cast in concrete. Definition
recognizes that, over a longer term, personality may change.

Definition
“Personality is the sum total of ways in which an individual reacts and
interacts with others. This is most often described in terms of measureable
personality traits that a person exhibits”
“Personality is the dynamic organization within the individual of those
psychological systems that determine his unique adjustments to this
environment” – Gorden Allport.

2.11 DETERMINANTS OF PERSONALITY

There are many factors/determinants that play a major role in personality

formation and development. They are categorized into four broad heads for the
purpose of analysis:
• Biological Factors – The general characteristics of human biological
system influence the way in which human beings tend to sense external
event data, interpret and respond to them. The contributors to personality
development are.

INDIVIDUAL
42 BEHAVIOR
 • Heredity – it is the transmission of qualities from ancestor to Organizational
descendant through genetic mechanism. Certain traits like eye & hair Behaviour
color, physique, height, intelligence are inherited from parents.
• Brain – Brain is supposed to play a major role in shaping personality. NOTES
Brain has two hemispheres which deal with different functions. The
structure of brain is closely associated with the development of
personality traits that promote such functions.
• Physical features – physical features or the rate of maturation or
an individual’s external appearance is an important determinants of
personality. A person’s physical appearance has an influence on his
personality because he will influence others and in turn shall affect his
self- concept. Persons with verifying maturity are exposed to different
physical and social situations differently.
• Family and Group factors- Family and social factors affect an
individual’s personality through the following two processes:
• Socialization – it’s the process by which an individual acquires those
behavior patterns that are customary and acceptable according to his
family and social groups.
• Identification – it occurs when a person tries to identify himself with
some person whom he feels ideal in the family.

These processes are influenced by

• Home environment – Home environment is a critical factor in
personality development.
Children living in a warm, loving and stimulating environment are not
as maladjusted as children brought – up in a cold and un-stimulating
home.
• Family members – the size and type of family determine the personally
of an individual.
People living in joint and large families tend to be more dependable on
others as compared to people living in nuclear and small families.
• Social groups – a person besides his home and family members gets
exposed to other influence arising out of social placements of person and
people who are around him.
• Situational factors – situations exert an important pressure on the
individual. It exercises constraints and may provide push. In other
circumstance, it is not so much the kind of person a man is, as the kind
of situation in which he is placed that determines his actions.

INDIVIDUAL
BEHAVIOR 43
 Organizational Life is a collection of experiences. Every individual goes through many
Behaviour experiences and events in his life. These events might change his
dispositions towards the similar situations. For eg. A person loosing his
NOTES close ones tends to become more emotional. Certain incidents reveal a
specific aspect of the personality of a person that had been hidden yet.
For eg. A coward and weak person may emerge to be heroic in the act of
saving some one’s life.
• Cultural factors – culture is the sum total of learned behavior traits
which are manifested and shared by the members of the society.
Culture established norms, attitudes, values, belief, perceptions that are
passed along from generation to generation and tend to create
consistencies over time. While growing, a child learns to behave in ways
expected by culture and family in which he is born. People in different
cultures have different view towards independence, aggression,
competition, cooperation, artistic talents etc.

2.12 MEASUREMENT OF PERSONALITY

Psychologists have devised a number of tests to measure the various aspects

of personality. Following are the noted ones:
• MBTI - The Myers-Briggs Temperament Indicator is a method of
popular psychology which some people believe measures and typifies
how people perceive the world and make decisions. Whilst not accepted
as scientific, it is nevertheless a popular method of categorizing people
as it it simple enough for most people to understand.
The categories originated from Carl Jung's theory about two pairs of
cognitive functions: The rational, judging functions: Thinking and Feeling
The irrational, perceiving functions: Sensing and Intuition
Mother and daughter team Katharine Briggs and Isabel Myers
expanded Jung's typing into the personality indicators used today. Corporations
have used it in the belief that it will help to figure out what their employees are
best suited for. Whether or not that is a good idea doesn't matter to us. What it is
and how it is used in storytelling goes like this:

People are scored on four different scales

Introvert vs. Extrovert: How people regain their energy. Extroverts mostly
recharge from interacting with the external world around them. Introverts find
more interest in dealing with mental constructs, ideas, and imagination, and
INDIVIDUAL
44 BEHAVIOR regain their energy from quiet time alone with their thoughts.
 Sensing vs iNtuition: This scale measures source from which someone's Organizational
learning is based. Sensing people go for concrete facts, while Intuitors focus Behaviour
more on abstraction. Sensors look at the immediate picture, and Intuitors see the
forest for the trees. NOTES
Thinking vs Feeling: Thinkers prefer to make decisions on the basis of
impersonal inputs and effects (often left-brain), and Feelers make decisions based
on how events affect people personally (often right- brain).

Judging vs Perceiving: MBTI classifies Thinking and Feeling as judging

attitudes, while Sensing and Intuition as perceiving attitudes. Whether you get
a J or a P depends on whether you use a judging or perceiving attribute to interact
with the world around you. When your judging is extroverted, you show left-
brain dominant characteristics: you prefer more order in your worldly dealings.
When you have an extroverted perceiving attribute, you show right-brain
dominant characteristics; you don't make as many plans and prefer to leave your
external dealings more spontaneous where possible.
• Big-Five Traits
Many contemporary personality psychologists believe that there are
five basic dimensions of personality, often referred to as the "Big 5" personality
traits. The five broad personality traits described by the theory are extraversion,
agreeableness, openness, conscientiousness, and neuroticism.
The acronym OCEAN is helpful to remember the big five traits.
We should note that each of these traits represent a range between extremes
of the continuum. People lie somewhere in between the two poles of each
dimensions.

INDIVIDUAL
BEHAVIOR 45
 Organizational The following are the five categories
Behaviour
Openness
This trait features characteristics such as imagination and insight, and those
NOTES
high in this trait also tend to have a broad range of interests. People who are
high in this trait tend to be more adventurous and creative. People low in
this trait are often much more traditional and may struggle with abstract thinking.
People who are high on the openness continuum are typically
• Very creative
• Open to trying new things
• Focused on tackling new challenges
• Happy to think about abstract concepts
Those who are low on this trait
• Dislike change
• Do not enjoy new things
• Resist new ideas
• Not very imaginative
• Dislikes abstract or theoretical concepts

Conscientiousness
Standard features of this dimension include high levels of thoughtfulness,
with good impulse control and goal-directed behaviors. Highly conscientiousness
tend to be organized and mindful of details.
Those who are high on the conscientiousness continuum also tend to:
• Spend time preparing
• Finish important tasks right away
• Pay attention to details
• Enjoy having a set schedule

People who are low in this trait tend to

• Dislike structure and schedules
• Make messes and not take care of things
• Fail to return things or put them back where they belong
• Procrastinate important tasks
• Fail to complete the things they are supposed to do

INDIVIDUAL
46 BEHAVIOR
Extraversion Organizational
Behaviour
Extraversion is characterized by excitability, sociability, talkativeness,
assertiveness, and high amounts of emotional expressiveness. People who are
high in extraversion are outgoing and tend to gain energy in social situations. NOTES
People who are low in extraversion (or introverted) tend to be more reserved and
have to expend energy in social settings.

People who rate high on extraversion tend to

• Enjoy being the center of attention
• Like to start conversations
• Enjoy meeting new people
• Have a wide social circle of friends and acquaintances
• Find it easy to make new friends
• Feel energized when they are around other people
• Say things before they think about them
People who rate low on extraversion tend to
• Prefer solitude
• Feel exhausted when they have to socialize a lot
• Find it difficult to start conversations
• Dislike making small talk
• Carefully think things through before they speak
• Dislike being the center of attention

Agreeableness
This personality dimension includes attributes such as trust, altruism,
kindness, affection, and other prosocial behaviors. People who are high in
agreeableness tend to be more cooperative while those low in this trait tend to
be more competitive and even manipulative.
People who are high in the trait of agreeableness tend to:
• Have a great deal of interest in other people
• Care about others
• Feel empathy and concern for other people
• Enjoy helping and contributing to the happiness of other people

Those who are low in this trait tend to

• Take little interest in others
• Don't care about how other people feel INDIVIDUAL
BEHAVIOR 47
 Organizational • Have little interest in other people's problems
Behaviour
• Insult and belittle others

NOTES Neuroticism
Neuroticism is a trait characterized by sadness, moodiness, and emotional
instability. Individuals who are high in this trait tend to experience mood swings,
anxiety, irritability and sadness. Those low in this trait tend to be more stable and
emotionally resilient.

Individuals who are high in neuroticism tend to

• Experience a lot of stress
• Worry about many different things
• Get upset easily
• Experience dramatic shifts in mood
• Feel anxious

Those who are low in this trait are typically

• Emotionally stable
• Deal well with stress
• Rarely feel sad or depressed
• Don't worry much
• Very relaxed

2.13 VALUES- DEFINITION AND MEANING, TYPES OF VALUE

Value is referred to judgmental element of what is right, good or desirable.

It is important and lasting belief shared by the individuals about what is good,
desirable or undesirable. Values have major influence on individual’s behavior
and serves as broad guidelines in all situations.

Definition
According to M. Haralambos, “A value is a belief that something is good
and desirable.”
According to R. K. Mukherji, “Values are socially approved desires and
goals that are internalized through the process of conditioning, learning or
socialization and that become subjective preferences, standards and aspirations.”
A value can be defined as shared idea about how something is ranked in
terms of goodness or worth and its desirability.
INDIVIDUAL
48 BEHAVIOR
Types of value Organizational
Behaviour
Two types of values are:
1. Terminal values
NOTES
These types of values are thought to be most important and or
desirable. These values refer to desirable end states of existence and
the goals a person would like to achieve in his life.
Some examples are recognition, self respect, happiness and
professional excellence etc.

2. Instrumental values
These types of values deal with views on acceptable mode of
conductors and reflect the means to achieve terminal values. That
means they reflect acceptable behavior to be used in achieving some
end state.
Some examples are ambition, honesty and self-sufficiency. An instrumental
value is a tool for achieving a terminal value.

Sources/ Formation of value system

Values are relatively stable and enduring. They are established as a result
of the way in which they are originally learnt. The values we hold are essentially
formed in our childhood from parents, teachers, friends and others. As a child
we are told that a certain behavior or outcome is always desirable / acceptable or
undesirable. For eg. we are been taught to be honest and responsible, never told
to be little honest or little responsible.
Parents - Our early ideas of what is right and what is wrong are formulated
from the views expressed by our parents. If we think back to our early views on
topics as education, sex and politics; for the most part we find that they were the
same as those expressed by our parents.
Teachers – as we grow, we are exposed to the values of our teachers some
of the values are altered and established by the views and trainings of the
teachers.
Society members – The social members we are surrounded of also
influences and form the values system. We align our thoughts and beliefs
according to the norms and beliefs of society that we live in.
Culture – The country, its economic and political system and the level of
technological growth also influence values. For eg. Indian children are taught
the importance of interdependence while American child is taught to be
independent and individualistic.

INDIVIDUAL
BEHAVIOR 49
 Organizational Test Questions
Behaviour
• Explain the meaning of learning and principles of learning.
• Write detailed notes on learning theory
NOTES
• What is perception. Explain in detail the process of perception.
• Elaborate on perceptual errors.
• Describe the concept of attribution.
• What is job satisfaction? What factors influence job satisfaction.
• Discuss the determinants of personality. Explain how personality is
assessed with the help of MBTI.

Multiple Choice Questions

5. The first stage in the perception process involves:
(a) Stimulus and response (b) Attention and logic
(c) Attention and meaning (d) Selection and attention
Answer b

6. Which of the following will influence an individual’s perceptions?

(a) Individual needs (b) Previous experiences
(c) Sensory limitations (d) All of the above
Answer d

7. A person’s comprises internal factors, such as ability, intelligence

and personality, and will determine how an individual responds to
certain stimuli.
(a) Cognitive set (b) Perceptual set
(c) Sensory limit (d) Psychological threshold
Answer b

8. The psychological or internal factors affecting perceptual selection are

and?
(a) Motives, personality, mental processes
(b) Personality, learning, motives
(c) Personality, ego, mental processes
(d) Learning, personality, ego
Answer b

INDIVIDUAL
50 BEHAVIOR
9. We tend to pay more attention to environmental stimuli which are: Organizational
Behaviour
(a) Novel (b) Bright
(c) Moving (d) All the above
NOTES
Answer d

10. The tendency to complete an incomplete figure to (mentally) fill in the

gaps and to perceive them as whole is called _?
(a) Ground (b) Figure
(c) Closure (d) Grouping
Answer c

11. The perception process demonstrates the integration of our:

(a) Environment, conscious self and unconscious self
(b) Physiology, environment and conscious self
(c) Unconscious self, physiology and environment
(d) Conscious self, unconscious self and physiology
Answer d

12. Which of the following is not an example of common stereotyping?

(a) Age (b) Nationality
(c) Physical (d) Perceptual
Answer d

13. The process by which the perception of a person is formulated on the

basis of a single favourable or unfavourable trait or impression, where
other relevant characteristics of that person are dismissed is called:
(a) clouded judgment (b) the halo effect
(c) the angel effect (d) stereotyping
Answer b
14. Most social scientists believe individual personality is influenced by
two main factors:
(a) Social class and family environment
(b) Education and genetic make-up
(c) Local environment and family traits
(d) Inherited characteristics and social environment
Answer d INDIVIDUAL
BEHAVIOR 51
 Organizational 15. Which of the following is not one of the “Big Five” dimensions of
Behaviour personality difference:
(a) Extraversion/introversion (b) Orderliness/untidiness
NOTES
(c) Emotional stability and instability
Answer b

*****

52 Chapter Heading
 Organizational
Behaviour

Unit 3 Motivation concept to application

NOTES

After learning this unit you should be able to

• Understand the concept of Motivation
• Know various content and process theories of motivation
• Use motivation theory in organization

Contents
3.1 Concept of Motivation
3.2 Types of Motivation
3.3 MASLOWS NEED THEORY
3.4 ERG THEORY
3.5 THEORY (X) AND THEORY (Y)
3.6 Herzberg’s Two-Factor Theory
3.7 Equity Theory
3.8 Vroom expectancy motivation theory
3..9 Porter and Lawler Model of Motivation
3.10 Motivation in Organization
3.11 Questions

3.1 CONCEPT OF MOTIVATION:

The term motivation has been derived from the team ‘motive’ which means
an idea, need emotion or organic state which prompts a man to an action. As it
is within the individual, we must study needs, emotions of person those induce
a person to perform or exert the efforts. Thus motivation is a process of getting
needs of the people realized and to induce them to work for the accomplishment
of organization objectives.
Motivation forms an essential technique with which organization can really
execute the plans and policies and achieve the success.

Nature of motivation
1. It is unending process
2. It is psychological concept
Motivation concept
3. It is concerned with whole individual to application 53
 Organizational 4. Goals and motivations are inseparable
Behaviour
5. Influences operating within an individual & also within an organization

NOTES Following are the outstanding Features of the concept of motivation

1. Motivation is a personal and internal feeling: Motivation is a
psychological phenomenon which generates within an individual.
2. Motivation is need based: If there are no needs of an individual, the
process of motivation fails. It is a behavioural concept that directs human
behaviour towards certain goals.
3. Motivation is a continuous process: Because human wants are
unlimited, therefore motivation is an ongoing process.
4. Motivation may be positive or negative: A positive motivation
promotes incentives to people while a negative motivation threatens the
enforcement of disincentives.
5. Motivation is a planned process: People differ in their approach, to
respond to the process of motivation; as no two individuals could be
motivated in an exactly similar manner. Accordingly, motivation is a
psychological concept and a complex process.

3.2 TYPES OF MOTIVATION: INTRINSIC AND EXTRINSIC MOTIVATION

Motivation can be defined as a reason (or reasons) which leads an individual

to act in a certain way. The phenomenon of motivation isn’t limited to just
humans, and occurs in every organism living. The reasons might not always
be the same between two individuals acting in a certain way, but almost every
action is directed by certain motivation.
Differences between Intrinsic Motivation and Extrinsic Motivation

Motivation concept
54 to application
 Organizational
Behaviour

NOTES

Similarities between Intrinsic Motivation and Extrinsic Motivation

Both Intrinsic and Extrinsic motivation have their own sets of advantages
and disadvantages. There is no saying which among them is more beneficial, as
it largely depends on the situation and the individuals being motivated. The
techniques applied are different, time duration required for each type of
motivation to kick in is different, and so are the results. However, at the core, the
major purpose of both kinds of motivation remains the same. The ultimate goal
is to motivate an individual to get the job done.
In conclusion, both types of motivation are required for an organism leading
the organism in completing the goals.

2. Positive and Negative Motivation

Positive motivation makes the use of incentives such as pay, reward,
appreciation whereas negative motivation emphasizes penalties such as
reprimands, threats, fear and fine etc.

Importance of Motivation
1. provides inducement to work
2. proper utilization of resources
3. increases willingness to work
4. develops good labour relations
5. improves team work
6. improves human relations
7. effective tool for management

Motivation concept
to application 55
 Organizational
Behaviour
3.3 MASLOWS NEED THEORY
NOTES
Abraham Maslow is well renowned for proposing the Hierarchy of Needs
Theory in 1943. This theory is a classical depiction of human motivation.
* If a lower need is satisfied, it no longer motivates behavior; the next
higher one becomes dominant. (Deficit principle)
* The five needs exist in a hierarchy. Higher needs only become important
when lower needs are satisfied
* Higher-order needs provide greater motivation.
* Different people may have different priorities.
The theory helps managers to identify which particular needs are relevant
for employees and thus to determine appropriate motivators.
This theory is based on the assumption that there is a hierarchy of five needs
within each individual. The urgency of these needs varies. These five needs are
as follows-

1. Physiological needs- These are the basic needs of air, water, food,
clothing and shelter. In other words, physiological needs are the needs
for basic amenities of life.
2. Safety needs- Safety needs include physical, environmental and
emotional safety and protection. For instance- Job security, financial
security, protection from animals, family security, health security, etc.
3. Social needs- Social needs include the need for love, affection, care,
belongingness, and friendship.
4. Esteem needs- Esteem needs are of two types: internal esteem needs
(self- respect, confidence, competence, achievement and freedom) and
external esteem needs (recognition, power, status, attention and
admiration).
5. Self-actualization need- This include the urge to become what you are
capable of becoming / what you have the potential to become. It includes
Motivation concept the need for growth and self-contentment. It also includes desire for
56 to application gaining more knowledge, social- service, creativity and being aesthetic.
 The self- actualization needs are never fully satiable. As an individual Organizational
grows psychologically, opportunities keep cropping up to continue Behaviour
growing.
• Implications of Maslow’s Hierarchy of Needs Theory for Managers NOTES
• As far as the physiological needs are concerned, the managers
should give employees appropriate salaries to purchase the basic
necessities of life. Breaks and eating opportunities should be given to
employees.
• As far as the safety needs are concerned, the managers should provide
the employees job security, safe and hygienic work environment, and
retirement benefits so as to retain them.
• As far as social needs are concerned, the management should
encourage teamwork and organize social events

3.4 ERG THEORY

ERG refers to Existence, Relatedness and Growth theory of motivation.

It is proposed by Clayton Alderfer. He further developed the Maslow’s need
theory and categorized the needs into three categories- Existence, Relatedness
and Growth. It was developed in between 60s and 70s established on the study
conducted at a factory in Easton, Pennsylvania.
Alderfer has compacted Maslow’s five needs into three broad categories –
Existence, Relatedness, and Growth, based on which the theory has been named
as ERG Theory of motivation.
Existence needs- Maslow’s physiological needs and security needs are
merged into existence needs of Alderfer. It is concerned with basic human needs
without which human body will fail to function. Employee won’t be motivated
unless his physiological needs are being fulfilled. Materialistic needs satisfy the
employee and safety needs affect his behavior.
Relatedness needs- Relatedness includes the desire of an individual to
achieve the interpersonal and social relationship. Social needs of Maslow’s theory
come under this heading. It is fundamental requirement of all the employees to
have a good relationship with the ones who are present in the organization. Thus,
an employee will always look for an environment which is friendly in nature. It
helps in decreasing the labor turnover rate of the company too.
Growth needs- This needs desire to achieve self growth and development.
Maslow’s self esteem and self actualization comes under this. An employee feels
good when he is recognized for his efforts. For example- Company can conduct
a facilitation program every year to give awards like- Best Employee of the Year.
All this motivates an employee to do more work, so that he can be respected and
valued by the other.

Motivation concept
to application 57
 Organizational Advantages of ERG
Behaviour
The main advantages of the ERG theory are as follows:
(1) Alderfer’s ERG theory is more consistent with our knowledge of
NOTES THEORY individual differences among people. Every individual will
have different importance for different group of needs depending upon
his education, family background and cultural environment.
A very qualified person will value the growth needs more than the
social needs or even the existence needs. On the other hand, a person
who belongs to a very poor family will rate the existence needs more
important. In this context, ERG theory is more relevant as compared
to the Maslow’s theory.
(2) ERG theory takes the strong points of the earlier content theories but
it is less restrictive and limiting as compared to the others.

Limitations of ERG Theory:

Disadvantages of the theory are as follows:
1. The ERG theory does not offer clear cut guidelines. This theory says that
an individual can satisfy any of the three needs first. But how will we
determine which of the three needs is more important to that person.
2. This theory is a new concept as compared to the Maslow’s theory.
Alderfer’s research has indicated some degree of support for the theories
but yet it is too early to pass judgment on the overall validity of
the theory.

3.5 THEORY (X) AND THEORY (Y)

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting

two aspects of human behaviour at work, or in other words, two different views
of individuals (employees): one of which is negative, called as Theory X and the
other is positive, so called as Theory Y.

Theory X
This theory believes that employees are naturally unmotivated and dislike
working, and this encourages an authoritarian style of management. According
to this theory, management must firmly intervene to get things done. This style
of management concludes that workers −
Disfavor working.
• Abstain responsibility and the need to be directed.
• Need to be controlled, forced, and warned to deliver what's needed.
• Demand to be supervised at each and every step, with controls put
Motivation concept in place.
58 to application
 • Require to be attracted to produce results, else they have no ambition or Organizational
incentive to work. McGregor observed that X-type workers are in fact Behaviour
mostly in minority, and yet in mass organizations, such as large scale
production environment, X Theory management may be needed and can
NOTES
be unavoidable.

Theory Y
This theory explains a participative style of management, that is, distributive
in nature. It concludes that employees are happy to work, are self-motivated and
creative, and enjoy working with greater responsibility. It estimates that workers
• Take responsibility willingly and are encouraged to fulfill the goals they
are given.
• Explore and accept responsibility and do not need much guidance.
• Assume work as a natural part of life and solve work issues imaginatively.
In Y-type organizations, people at lower levels are engaged in decision
making and have more responsibility.

Conclusion
The fundamental distinction between these two is treating employees like
children and treating employees like adults. These are two separate set of
assumptions of the managers which depict the two models of the motivation of
manpower, which are adopted by the managers.

3.6 HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor

theory or the motivator- hygiene theory. According to Herzberg, there are some
job factors that result in satisfaction while there are other job factors that prevent
dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No
satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.
Herzberg classified these job factors into two categories
• Hygiene factors- Hygiene factors are those job factors which are
essential for existence of motivation at workplace. These do not lead to
positive satisfaction for long-term. But if these factors are absent / if these
factors are non-existant at workplace, then they lead to dissatisfaction.
In other words, hygiene factors are those factors which when
adequate / reasonable in a job, pacify the employees and do not make
them dissatisfied. These factors are extrinsic to work. Hygiene factors
are also called as dissatisfiers or maintenance factors as they are required
to avoid dissatisfaction. These factors describe the job
environment/scenario. The hygiene factors symbolized the physiological
needs which the individuals wanted and expected to be fulfilled. Hygiene
factors include: Motivation concept
to application 59
 Organizational • Pay - The pay or salary structure should be appropriate and reasonable.
Behaviour It must be equal and competitive to those in the same industry in the same
domain.
NOTES • Company Policies and administrative policies - The company policies
should not be too rigid.
They should be fair and clear. It should include flexible working hours,
dress code, breaks, vacation, etc.
• Fringe benefits - The employees should be offered health care plans
(mediclaim), benefits for the family members, employee help
programmes, etc.
• Physical Working conditions - The working conditions should be safe,
clean and hygienic. The work equipments should be updated and well-
maintained.
• Status - The employees’ status within the organization should be familiar
and retained.
• Interpersonal relations - The relationship of the employees with
his peers, superiors and subordinates should be appropriate and
acceptable. There should be no conflict or humiliation element present.
• Job Security - The organization must provide job security to the
employees.
• Motivational factors- According to Herzberg, the hygiene factors
cannot be regarded as motivators. The motivational factors yield
positive satisfaction. These factors are inherent to work. These factors
motivate the employees for a superior performance. These factors are
called satisfiers. These are factors involved in performing the job.
Employees find these factors intrinsically rewarding. The motivators
symbolized the psychological needs that were perceived as an additional
benefit. Motivational factors include:
• Recognition - The employees should be praised and recognized for their
accomplishments by the managers.
• Sense of achievement - The employees must have a sense of
achievement. This depends on the job. There must be a fruit of some sort
in the job.
• Growth and promotional opportunities - There must be growth and
advancement opportunities in an organization to motivate the employees
to perform well.
• Responsibility - The employees must hold themselves responsible for
the work. The managers should give them ownership of the work.
They should minimize control but retain accountability.
• Meaningfulness of the work - The work itself should be meaningful,
interesting and challenging for the employee to perform and to get
motivated.
Motivation concept
60 to application
Limitations of Two-Factor Theory Organizational
Behaviour
The two-factor theory overlooks situational variables.
Herzberg assumed a correlation between satisfaction and productivity. But
the research conducted by Herzberg stressed upon satisfaction and ignored NOTES
productivity.
The theory’s reliability is uncertain. Analysis has to be made by the raters.
The raters may spoil the findings by analyzing same response in different manner.
No comprehensive measure of satisfaction was used. An employee may find
his job acceptable despite the fact that he may hate/object part of his job.
The two factor theory is not free from bias as it is based on the natural
reaction of employees when they are enquired the sources of satisfaction and
dissatisfaction at work. They will blame dissatisfaction on the external factors
such as salary structure, company policies and peer relationship. Also, the
employees will give credit to themselves for the satisfaction factor at work.
The theory ignores blue-collar workers. Despite these limitations,
Herzberg’s Two-Factor theory is acceptable broadly.

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon
guaranteeing the adequacy of the hygiene factors to avoid employee
dissatisfaction. Also, the managers must make sure that the work is stimulating
and rewarding so that the employees are motivated to work and perform harder
and better. This theory emphasize upon job-enrichment so as to motivate the
employees. The job must utilize the employee’s skills and competencies to the
maximum. Focusing on the motivational factors can improve work-quality.

3.7 EQUITY THEORY

In 1963, John Stacey Adams introduced the idea that fairness and equity
are key components of a motivated individual. Equity theory is based in the idea
that individuals are motivated by fairness, and if they identify inequities in the
input or output ratios of themselves and their referent group, they will seek to
adjust their input to reach their perceived equity. Adams suggested that the
higher an individual's perception of equity, the more motivated they will be and
vice versa: if someone perceives an unfair environment, they will be de-
motivated.
The easiest way to see the equity theory at work, and probably the most
common way it does impact employees, is when colleagues compare the work they
do to someone else that gets paid more than them. Equity theory is at play anytime
employees say things like, 'John gets paid a lot more than me, but doesn't do nearly
as much work,' or 'I get paid a lot less than Jane, but this place couldn't operate
without me!' In each of those situations, someone is comparing their own effort-
to-compensation ratio to someone else's and is losing motivation in the process. Motivation concept
to application 61
 Organizational
Behaviour
3.8 VROOM EXPECTANCY MOTIVATION THEORY
NOTES
Vroom's expectancy theory assumes that behavior results from conscious
choices among alternatives whose purpose it is to maximize pleasure and to
minimize pain. Vroom realized that an employee's performance is based on
individual factors such as personality, skills, knowledge, experience and
abilities. He stated that effort, performance and motivation are linked in a person's
motivation. He uses the variables Expectancy, Instrumentality and Valence to
account for this.
Expectancy is the belief that increased effort will lead to increased
performance i.e. if I work harder then this will be better. This is affected by such
things as:
• Having the right resources available (e.g. raw materials, time)
• Having the right skills to do the job
• Having the necessary support to get the job done (e.g. supervisor
support, or correct information on the job)
Instrumentality is the belief that if you perform well that a valued
outcome will be received. The degree to which a first level outcome will
lead to the second level outcome. i.e. if I do a good job, there is something
in it for me. This is affected by such things as:
• Clear understanding of the relationship between performance and
outcomes – e.g. the rules of the reward 'game'
• Trust in the people who will take the decisions on who gets what outcome
• Transparency of the process that decides who gets what outcome
Valence is the importance that the individual places upon the expected
outcome. For the valence to be positive, the person must prefer attaining the
outcome to not attaining it. For example, if someone is mainly motivated by
money, he or she might not value offers of additional time off.
Crucially, Vroom's expectancy theory works on perceptions – so even if an
employer thinks they have provided everything appropriate for motivation, and
even if this works with most people in that organisation, it doesn't mean that
someone won't perceive that it doesn't work for them.

Advantages of the Expectancy Theory

It is based on self-interest individual who want to achieve maximum
satisfaction and who wants to minimize dissatisfaction.
This theory stresses upon the expectations and perception; what is real and
actual is immaterial. It emphasizes on rewards or pay-offs.
It focuses on psychological extravagance where final objective of
Motivation concept individual is to attain maximum pleasure and least pain.
62 to application
Limitations of the Expectancy Theory Organizational
Behaviour
The expectancy theory seems to be idealistic because quite a few individuals
perceive high degree correlation between performance and rewards.
The application of this theory is limited as reward is not directly correlated NOTES
with performance in many organizations. It is related to other parameters also
such as position, effort, responsibility, education, etc.

3.9 PORTER AND LAWLER MODEL OF MOTIVATION

Lyman Porter and Edward Lawler came up with a comprehensive theory of

motivation, combining the various aspects using two additional variables in their
model. Porter and Lawler’s model is a more complete model of motivation. This
model has been practically applied also in their study of managers. This is a multi
variate model which explains the relationship that exists between job attitudes
and job performance.

Assumptions
This model is based on four basic assumptions about human behaviour:
(i) It is a multi variate model. According to this model, individual
behaviour is determined by a combination of factors in the individual
and in the environment.
(ii) Individuals are assumed to be rational human beings who make
conscious decisions about their behaviour in the organisations.
(iii) Individuals have different needs, desires and goals. The Various
Elements of Porter and Lawler Model
Effort : Effort refers to the amount of energy an employee exerts on a given
task. How much effort an employee will put in a task is determined by two
factors: (i) value of reward and (ii) perception of effort- reward probability.
Performance : One's effort leads to his/her performance. Both may be equal
or may not be. However, the amount of performance is determined by the amount
of labour and the ability and role perception of the employee. Thus, if an
employee possesses less ability and/or makes wrong role perception, his/her
performance may be low in spite of his great efforts.
Satisfaction : Performance leads to satisfaction. The level of satisfaction
depends upon the amount of rewards achieved. If the amount of actual rewards
meet or exceed perceived equitable rewards, the employee will feel satisfied. On
the contrary, if actual rewards fall short of perceived ones, he/she will be
dissatisfied.
Rewards may be of two kinds : intrinsic and extrinsic rewards. Examples
of intrinsic rewards are such as a sense of accomplishment and self-actualization.
Extrinsic rewards may include working conditions and status. A fair degree of Motivation concept
to application 63
 Organizational research supports that the intrinsic rewards are much more likely to produce
Behaviour attitudes about satisfaction that are related to performance.
This model is of great significance to managers since it sensitises them to
NOTES focus their attention on the following points to keep their employees motivated:
1. Match the abilities and traits of individuals to the requirements of the job
by putting the right person on the right job.
2. He should carefully explain to the subordinates their roles or what they
must do to be rewarded. Then he must make sure that they understand it.
3. Prescribe in concrete terms the actual performance levels expected of the
individuals and these levels should be made attainable.
4. To achieve and maintain motivation, the appropriate reward must be
associated with successful performance.
5. Make sure that the rewards dispensed are valued by the employees. Thus,
he should find out what rewards are attractive to the employee and see if
such rewards can be given to him.
Porter and Lawler model has definitely made a significant contribution to
the better understanding of work motivation and the relationship between
performance and satisfaction. But even then, to date, it has not made much impact
on the actual practice of human resource management

3.10 MOTIVATION IN ORGANIZATION

Motivation is one of the important parts of managerial functions. A manager

becomes unsuccessful if he fails to motivate his subordinates. The features of
motivation in organization its importance. There is a close relationship
between motivation and performance. The most important of motivation are
• Lead to profitable operation
Motivation is an important tool that leads the organization in profitable
operations. Motivated workers perform their duties with full
responsibility. The development of self responsibility among the workers
contributes for the best utilization of available resources like
materials, money, machines and others.

• High level of productivity

Motivation contributes to develop working efficiency of employees.
When employees are actually motivated they improve their working
efficiency. The development of working efficiency among workers leads
to maximize production and productivity. Management can expand its
business activities in large areas for organizational profitability and
growth.

Motivation concept
64 to application
• Best remedy for resistance to change Organizational
Behaviour
The change in the management system and organizational structure is
essential to adjust an organization and its business activities according
to changing environment. In some situation workers, specially, their NOTES
unions may create resistance to change. They think about their job
security and stability. The motivated workers have knowledge about the
outcome of changes. They even better appreciate the management view
points to the introduction of chances in the organization.

• Effective use of human resources

Manpower is the main active factor of production and is responsible for
the best utilization of organizational resources. Motivation is the main
instrument which creates the willingness among workers to do their work
in the best possible way. In other words, motivated employees make the
best utilization of their skills, knowledge, capabilities etc. in the existing
environment.

• Satisfaction of employees
The satisfaction of employees is essential for organizational effectiveness.
Motivation helps satisfy employees and develop morality among them.
Employees with high morale become dedicated to the organization. They
also perform their jobs in the best manner. Generally, employees are
motivated through facilities both financial and non financial. Financial
facilities are essential to fulfill basic and other physiological needs. In a
similar manner, promotion on the basis of efficiency and experience is
essential to fulfill social needs.

• Minimize disputes and strikes

Motivation is an important tool, which helps to maintain coordination
and develop a feeling of harmony among workers and management. It
minimizes misunderstanding and disputes between the management and
workers. The development of transparency about the internal matters
stimulates the workers to perform their work efficiently. When workers
get knowledge about their responsibility and return, they perform their
work efficiently.

• Basis of coordination
Motivation is the basis of coordination among all members of the
organization. Motivated employees develop a better understanding
among themselves. They appreciate their mutual problems and resolve
differences through mutual consent. The main reason for the differences
in approach among the workers is the lack of coordination. However,
motivation helps to maintain coordination among the workers. The
maintenance of coordination helps to develop the attitude of team spirit
and group effort for common goals.
Motivation concept
to application 65
 Organizational • Stability of workforce
Behaviour
It is known that a motivated and stable workforce is potential of the
organization. Motivation directly or indirectly facilitates the stability of
NOTES the workforce. Generally, frustrated and dissatisfied employees may think
of leaving the organization for better opportunity. Motivated employees
do no want to leave the organization and want to work for the
organization with the best possible way. Therefore, the management
needs to provide facilities to workers on the basis of their efficiency and
experience.

• Minimizes supervision cost

Motivated employees perform their work themselves. In other words, the
concept of sell responsibility is developed among them and they perform
work smoothly. For such employees, only guidance and timely
suggestion is sufficient. Therefore, regular and close supervision is not
required to such employees. Motivation indirectly contributes to
minimizing supervision cost.

• Achievement of organization goals

Every organization is established to achieve definite objectives. Similarly,
the main responsibility of the management is to focus on organizational
objectives. Motivated workers put their effort toward the attainment of
organization objectives. The best utilization of human effort contributes
for the proper utilization of other resources. This is helpful to minimize
cost of output or service and maximize profitability.

Test Questions
• Explain the concept of motivation with examples.
• What are difference types of motivation.
• Describe the Maslow’s Need theory.
• Elaborate on ERG theory and how is it different Maslow’s need theory.
• Compare theory X and Theory Y in detail.
• What are Two-factors that describe the motivation according to
Herzberg?
• Discuss equity theory and its application.
• Elaborate on Vroom’s Expectancy model and Porter-Lawler theory of
motivation

Multiple choice questions

1. According to Employees exercise the self-direction and self-control
when they are committed to objectives of the organization
a. Theory X b. theory Y
c. theory A d. theory B
Motivation concept
66 to application Answer b.
2. According to Maslow ____ step in need hierarchy theory deals with Organizational
achieving individual’s potential. Behaviour
a. Social b. safety
c. physiological d. self-actualization
Answer d. NOTES

3. In the following options,_____is hygiene factor according to Herzberg.

a. Promotion b. company policy
c. responsibility d. personal growth
Answer b.

4. According to _____ need for achievement, affiliation and power helps

to understand motivation in workplace.
a. Maslow b. McGregor
c. McClelland d. Alderfer
Answer c.
5. is valence.
a. The importance of job b. the satisfaction of a job
c. the value of reward to individual d. the knowledge and effort
Answer c.

6. E in ERG stands for

a. Excellence b. effort
c. existence d. employee
Answer c.

7. In the theory ________ an employee will compare his/her job inputs

and outcomes to others.
a. Equity theory b. performance theory
c. comparative theory d. input-output theory
Answer a.

8. Theory X suggests that employees

a. Dislike work b. dislike managers
c. like work d. like managers
Answer a.
9. Expectancy theory is an example of a ______.
a. Process theory b. content theory
c. needs theory d. all of above
Answer a.

10. A person’s perception that performance at a particular level will lead

to desired outcome is noted as __________ .
a. Instrumentality b. relevance
c. goal setting d. expectancy
Answer d.
Motivation concept
***** to application 67
 Organizational
Behaviour

Unit-4 Group Behaviour

NOTES

Learning Objectives
After learning this unit, you should be able to:
• Define group, teams and conflict.
• Describe formation of group, team building and conflict process.
• Discuss the group and team decision making process.
• Explain the importance of cohesive group and creating effective teams.
• Analyze the group behaviour and effect of conflict
• Present strategies for developing effective teams and managing conflict.

Content
4.1 Introduction
4.2 Define group
4.3 Formation of group
4.4 Classification of groups
4.5 Group properties
4.6 Group decision making
4.7 Define Team
4.8 Team building
4.9 Multi-disciplinary teams
4.10 Team Dynamics
4.11 Define- Conflict
4.12 Outline conflict process
4.13 Conflict management techniques
4.14 Test Questions
4.15 Multiple Choice Questions

4.1 INTRODUCTION

Today’s business environment is changing rapidly, in this environment

understanding individuals and different group dynamics may be difficult to
manage. This unit approach is to understand organizational behaviour in formal
and informal groups, types of groups and formation process of group. The use
of such groups and effective teams to deals with business challenges.
68 Group Behaviour
Understanding group dynamics, cohesiveness for achieving organizational goals Organizational
with no conflict is becoming major task of business managers. Behaviour

NOTES
4.2 DEFINE GROUP

A group is defined as two or more individuals come together, interact

frequently with common feeling to achieve particular task. Every signal person
in the organization work together in group to achieve organizational goal in
efficient manner.

4.3 FORMATION OF GROUP

Stage-I: Forming: (Orientation Stage)

In this stage, each and every members of group are positive and polite
however sometimes it has observed that individuals are not so cleared of the fact
of group formation. This lead either to anxiousness which means they haven’t
fully understood what work will the team do or to excitement about the task
ahead. This stage is often known for uncertainty and confusion. Yet it’s a stage
where you can be dominant because you have to put an entire new concept to
work upon which clarifies the goal of group formation. Since every individual
has a different point of view which often give rise to intra- group conflicts where
sometimes people start feeling being suppressed by the group or the members of
the group.
Once the stage crossed, where now the people started putting efforts for a
common goal achievement, it brings more clarity towards the hierarchy and
relationship.
At this stage, group members learn what to do, how the group is going to
operate, what is accepted and what is acceptable.

Stage-II: Storming: (Power Struggle Stage)

Next Stage is the Storming Stage where the dispute and competition are at
its extreme due to confusion over leadership, relationship, hierarchy, authority,
Group Behaviour 69
 Organizational rules, policies, norms, structures, purposes, reward system etc. since the group
Behaviour now has an understanding of the work and a general feeling of
belongingness towards the group as well as group members to get the work
NOTES accomplished. This stage gives a cut throat competition where the dominating
group members survive suppressing the less confrontational members stay in
their comfort zone. Thus, this stage is known for intra-group conflict.
However, there should be clarity on the hierarchy and chain of commands
known to the group members by appointing a leader from within the group.

Stage-III: Norming: (Cooperation and Integration Stage)

This is the stage where group members show collaboration and exhibit
cohesiveness with each other being aware of the mutual purpose of the group
formation and about the task for which they are assigned to work in group. In
this stage, the task is been shared and distributed among each and every one with
a clarity on how to go further and by what means. Everything is so clear for group
members like their leader, group hierarchy, group relationships. All group
members work on for a common goal accomplishment with much dedications
and expectations of each others.

Stage-IV: Performing: (Synergy)

Right after group collaboration, here comes the Synergy Stage in which
group members combines their individual effort towards functioning and
performing the tasks in order to attain the group goals. At this stage, the morale
is high as group members actively acknowledge the talents, skills, and expertise
that each member brings to the group. Group members are flexible,
interdependent, and trust each other. Group members are willing to adapt as per
the needs of the group being in Distributive Leadership.

Stage-V: Adjourning: (Closure Stage)

This is the Stage where the task is completed successfully. At this stage, the
work tends to and the team members move to different directions. Permanent
group continues to work for organizational goals which though is never ending
till the organization exist wherein the temporary group makes an exit from the
organization as soon as the purpose gets accomplished. In this way such groups
are adjourned.

4.4 CLASSIFICATION OF GROUPS

Earlier we studied the Group Formation which elaborates its necessity,

purpose and importance. These groups can be further classified into different
categories based on different criteria. Some of them are listed below:

70 Group Behaviour
 Organizational
Behaviour

NOTES

Formal Group
These are the type of work groups created by the organization with a
purpose of task accomplishment. Work assignments and rooted tasks are
designated to group members. The aim of these groups is successful completion
of specified tasks within a time frame.
Example: Project workers, specific departmental people of an organization,
etc. Formal Group is further classified into:
• Permanent Group: The group which is stable and formed for a longer
period of time. Generally, it is formed for strategic decision purposes of
an organization. Example: Top hierarchies who control the business.
• Temporary Group: The group which is not stable and breaks as soon the
purpose ends. Generally, it is formed for a small task accomplishment of
an organization.
Example: Group formed for a weekly target achievement.
• Functional Group: It is classified according to functions of the members
of the group.
Example: HR, Marketing, Finance, ITetc.
• Command Group: It is a group consisting of individuals who report
directly to the Manager.
Example: A group of workers working on the same project who report to
a common Manager who leads the project.
• Task Group: It is a group in which people work together to finish a job
or a task but not limited by hierarchical limits. It is a fixed job specified
to each of the members.

Informal Group
These are the type of alliances formed which includes no formal structure
or hierarchy. These are formed with friendships and common interests. It may
form at work place in order to provide social interaction among employees.
Example: Sports Club, Social Club, a community formed of some members
who spent time together apart from work purpose etc.
Group Behaviour 71
 Organizational Informal Group is further classified into two
Behaviour
• Interest Group: It is a group composed of individuals who may not
be members of the same organization, but they are united by their
NOTES interests in a common issue.
Example: University Professors.
• Friendship Group: It is an association of people who like each other and
like to be together. Such groups are formed because they share common
interest, characteristics, etc.
Example: Age, ethnic heritage, political beliefs, religious views etc.
• Reference Group: It is a special type of informal group that people use
to evaluate themselves. It may not be an actual one that meets together,
it can be imaginary group.
Example: A reference group for a new University Lecturer, may be other
scholars in the same discipline in other Universities.

Other Informal Group Types are:

Groups identified by Mayo and Lambard;
• Natural: It is the group formed out of natural course of action with no
predetermined structure.
• Family: It the group of regular members exhibit similarity since they
influences, moulds, and determines the behavior of other group members.
• Organized: It is a the highly structured group with an acknowledged
leader.

Groups identified by Sayles

• Apathetic Group: Group which possess unaccepted leadership, lack
of cohesiveness, disunity and conflict features.
• Erratic Group: Group suffers absence of control, inconsistent behavior,
and autocratic leadership.
• Strategic Group: Group is highly organized, consistent, and planned.
• Conservative Group: Group is characterized by cooperation,
collaboration, unity to a moderate extent.

72 Group Behaviour
 Organizational
Behaviour
4.5 GROUP PROPERTIES
NOTES

Property 1: Roles
• Role- A set of expected behavior patterns attributed to someone
occupying a given position in a social unit.
• Role Identity- Certain attitudes and behaviors consistent with a role.
• Role Perception- An individual’s view of how he or she is supposed to
act in a given situation, received by external stimuli.
• Role Expectations- How others believe a person should act in a given
situation.
• Psychological Contract- An unwritten agreement that sets out mutual
expectations of management and employees.
• Role Conflict- A situation in which individual is confronted by divergent
role expectations.

Property 2: Norms
• Conformity- Adjusting one’s behavior to align with the norms of
the group.
• Classes of Norms-
• Performance Norms: level of acceptable work
• Appearance Norms: what to wear
• Social Arrangement Norms: friendships and the like
• Allocation of resources Norms: distribution and assignments of jobs and
material

Group Behaviour 73
 Organizational • Reference Groups- Important group to which individuals belong or hope
Behaviour to belong and with whose norms individuals are likely to conform.
• Asch Studies: Demonstrated the power of conformance. Culture based
NOTES and declining in importance.

Property 3: Status
• A socially defined position or rank given to groups or group members by
others- it differentiates group members :- Important factor in
understanding behavior and Significant motivator
• Status Characteristics Theory:- Status derived from one of these three
sources:
• Power a person has over others
• Ability to contribute to group goals
• Personal characteristics

Property 4: Size
• Group size plays an important role in group behavior.
• Activities like problem solving, investigation, and inquiry need to be
performed by larger groups.
• Activities like decision-making, can be efficiently performed by small
groups.
• Group size affects behavior.
• Size:- 12 or more members is a large group and 7 or fewer is a smaller
group.
• Best use of a group:

Property 5: Cohesiveness
• Degree o which group members are attracted to each other and are
motivated to stay in the group.
• Managerial Implication- To increase cohesiveness:-
• Make the group smaller.
• Encourage agreement with group goals.
74 Group Behaviour
 • Increase time members spend together. Organizational
Behaviour
• Increase group status and admission difficulty.
• Stimulate competition with other groups.
NOTES
• Give rewards to the group, not to individuals.
• Physically isolate the group.

4.6 GROUP DECISION MAKING

Decision making is a selective process in which the best from among the
alternatives is selected. Group decision making is rather a participatory process.
In this, multiple opinions arise which sometimes create havoc which results in
negative outcome. Wherein when it is dealt with curiosity, collectively, analyze
problems or situations, consider and evaluate alternative courses of action, and
select from among the alternatives a solution(s). In this, quite a large number of
people involve but in limitation of two to seven for a better group decision with
affirmation of all. The individuals of group may be demographically similar or
quite diverse. Depending upon the situation or problem, decision-making groups
may be relatively informal in nature, or formally designated, and charged with a
specific goal wherein the process used to arrive at decisions may be unstructured
or structured. Group even faces the external contingencies which impact the
development and effectiveness of their decision making.
In organizations many decisions of consequences are made after some form
of group decision-making process is undertaken. However, groups are not the
only form of collective work arrangement. Group decision making should be
distinguished from the concepts of teams, teamwork, and self managed teams.

Methods of Group decision making

Group Behaviour 75
 Organizational
Behaviour

NOTES

Group decision- making Process

Step I: Define the problem

Implement and follow up
This simply means identifying the purpose of your decision by asking
yourself what exactly is the problem that needs to be solved? And why does
this problem need to be solved?

Step II: Identify the criteria

Figuring out what’s most important to you will help you make good
decisions. When you know the reason why you have making a particular
decision; it will better serve you in staying with it, and defending it.

76 Group Behaviour
Step III: Gather and evaluate data Organizational
Behaviour
When making good decisions it is best to gather necessary information that
is directly related to the problem. Doing this will help you to better understand
what needs to be done in solving the problem, and will also help to generate ideas NOTES
for a possible solution.

Step IV: List and evaluate alternative

When gathering information it is best to make a list of every possible
alternative; even ones that may initially sound silly or seem unrealistic. Always
seek the opinions of people that you trust or speak to experts and professionals,
because it will help you to come up with a variety of solutions when weighing
all your options for a final decision. You will want to gather as many resources
as possible in order to make the best decision.

Step V: Select best alternative

Now that you have identified your goal, gathered all necessary information,
and weighed the consequences, it is time to make a choice and actually execute
your final decision. Understanding that this step can cause some people a lot of
anxiety is important because this is where you have to trust your instincts.
Although you may still be slightly indecisive about your final decision, you have
to take into account how this makes you feel. Ask yourself, does it feel right?
And does this decision work best for you now, and in the future? When you
answer those questions back, you should feel good about the result.

Step VI: Implement and Follow up

Once you have made your final decision and put it into action, it is necessary
to evaluate the decision and the steps you have taken to ensure that it works.
This final step is probably just as important as step one, if not more important,
because it will help you to further develop your decision making skills for future
problems. This step is also fundamental because it may require you to seek out
new information and make some changes along the way.

4.7 DEFINE TEAM

Team is defined group of two or more people who interact and influence
each other, are mutually accountable for achieving common goals associated with
organizational objectives, and perceived themselves as a social entity within an
organization. Team can be formed anywhere, anytime whenever the task is little
difficult or complicated.
Characteristics of an effective team
• A good mix of introverts and extroverts
• They share the same stories
• They make time for humor
• They communicate proactively
• Great leadership Group Behaviour 77
 Organizational Types of Team
Behaviour

NOTES

• Permanent Teams: These team perform permanently and do not dissolve

once the task is accomplished.
• Temporary Teams: These team unlike to permanent team loose their
importance, once the task is accomplished.
• Task Force: These team are performed for a special purpose of working
on any specific project or to find a solution to a very critical problem.
• Committee: These are formed to work on a particular assignment either
permanently or on a temporary basis. Individuals with common interests,
attitude come together to form a committee.
• Organization/ Work Force: These teams are formed in an organization
where team members work together under the expert or guide.

Without the supervision of any leader.

• Cross-Functional Teams: In these teams, people from different
areas, interests and likings come together with a unique idea to
successfully complete the task.
• Virtual Teams: It consists of individuals who are separated by distances
and connected through internet.

78 Group Behaviour
 Organizational
Behaviour
4.8 TEAM BUILDING
NOTES
Refers to the various activities undertaken to motivate the team members
and increase the overall performance of the team. Its purpose is to enhance the
efficiency of strategic management in an organization. It’s a good learning
phenomena which consists of various activities consists of various tasks
undertaken to groom, motivate and enhance the performance of the team
members.
Appreciation is the major motivating factor of a team that maintains the
workaholic feature of team. Team member should never be criticized on their
non performance that prevails de- motivation. Ask them to “Buck up”.

Team Building Exercises

• Encourage many trust building exercises in your team. Trust is the
important factor in team.
• One must know his fellow team member well.
• They must be compatible with each other including icebreaking activities
in the team.
• Encourage activities where individuals come together as a single unit
amd work for a common task.

Importance of Team Building

• Team building and team work are essential in corporate to make the
organization a better a place to work.
• Team building activities improve the relations and strengthen the bond
among the employees.
• Team building activities reduce the chances of confusion,
misunderstandings and in a way making the communication effective.
• Individuals feel more positive and confident at work place.

Team Building Strategies

• Select those members who can contribute to the achievement of
organizational goals.
• Divergence of skills required.
• Balance the team structure.
• Free flow of communication.
• Cross cultural team.
• Each member should have something to contribute.
Group Behaviour 79
 Organizational Team Building Interventions
Behaviour
• Diagnosing barriers to effective performance.
• Improving task accomplishment and improving relationship between
NOTES team members.
• Understanding and managing group process and culture.
• Role analysis techniques for role clarification.
• Definition and role negotiation techniques is important.

Essential Conditions of Team Building

• Every member must have a cleared assigned role.
• Team must take collective responsibility for the action of each of its
members.
• Team must speak with one voice.
• No appeal from one member to another.
• Good team is small in number.

Ingredients of Team Building

• Get the right people with complimentary skills together.
• Have a large block of uninterrupted time.
• Emphasize that they have to work together.
• Deal with high priority problems/opportunities.
• Work on all the identified problem.

Team Building Goals

• Directing the members behavior and skills towards business goals by
clarifying core values.
• Translating the business unit goals into specific performance
requirements of members.
• Selecting and developing right mix of skills.
• Enhancing creativity in task performance.
• Build employee loyalty to the company.

Success Factor in Team Building

• The nature of the leadership of the team along with a shared vision and
sense of purpose.
• The collaborative nature of the team.
• The way in which the team members are empowered to the extent that
they proactively participate in the team success.

80 Group Behaviour
 Organizational
Behaviour
4.9 MULTI DISCIPLINARY TEAM
NOTES
Group members with a composed varied but complimentary skills,
experience, qualifications that contribute to the achievement if the organization’s
specific objectives.

4.10 TEAM DYNAMICS

Team dynamics are created by the nature of the team’s work, the
personalities within the team, their working relationships with other people, and
the environment in which the team works. Team dynamics are the unconscious,
psychological forces that influence the direction of a team’s behavior and
performance.
Team dynamics can be good - for example, when they improve overall team
performance and/or get the best out of individual team members. They can
also be bad - for example, when they cause unproductive conflict, de-
motivation, and prevent the team from achieving its goals.

Impact of Team Dynamics

• Poor Team Dynamics Hinder Growth
• Strong Team Dynamics Uncover Untapped Potential

4.11 DEFINE CONFLICT

Conflict can be defined in many ways and can be considered as an

expression of hostility, negative attitudes, aggression, rivalry and
misunderstanding. It is also associated with situations that involve contradictory
or irreconcilable interests between two opposing groups. It is any tension which
is experienced when one person perceives that one's needs or desires are likely
to be frustrated. It can be defined as a disagreement between two or more
individuals or groups, with each individual or group trying to gain acceptance of
its view or objectives over others.

Group Behaviour 81
 Organizational
Behaviour
4.12 OUTLINE CONFLICT PROCESS
NOTES

4.13 CONFLICT MANAGEMENT TECHNIQUES

82 Group Behaviour
Avoiding Organizational
• Objective: It has to deal with a conflict Behaviour

• Supporting Rationale: Disagreements are inherently bad because they

create tension. NOTES
• Possible Outcome: Interpersonal failed to be resolved which causes long
term frustration.

Competing
• Objective: It says to get your way
• Supporting Rationale: Causing a few hard feelings is better than
abandoning the issue.
• Possible Outcome: The one party feels vindicated while other feels to be
possibly humiliated.

Collaborating
• Objective: It solves the problem together
• Supporting Rationale: Each position is important but not needed
that it necessarily equally valid.
Emphasis should be placed on the fairness of the decision- making
process and the quality of the outcome.
• Possible Outcome: The problem is likely to be resolved since both parties
are committed to the solution.

Accommodating
• Objective: It aims not to upset the person
• Supporting Rationale: The priority should be to maintain the harmonious
relationship.
• Possible Outcome: The other party is likely to take the advantage.

Compromising
• Objective: It aims to reach an agreement quickly
• Supporting Rationale: Prolonged conflicts distract people from their work
and cause bad feeling.
• Possible Outcome: The quickest rather than the best solutions are chosen.

4.14 TEST QUESTIONS

1. Define group. Explain the process of group formation.

2. Write in detail the types of groups.
3. What are the benefits of group decision making?
4. Explain different methods of group decision making
5. What is conflict? What are its types.
6. Explain in detail the conflict management process. Group Behaviour 83
 Organizational
Behaviour
4.15 MULTIPLE CHOICE QUESTIONS
NOTES
1. How do you describe a work group that comprises workers with
demarcated tasks and distant line managers?
a) Dependent b) Independent
c) Interdependent d) Collaborative

2. Which one of the following is not a characteristic of a team?

a) Minimal and formal knowledge sharing
b) Collective output
c) Individual and collective responsibility
d) Fluid dimension to roles and tasks

3. What are group norms?

a) Modes of behaviour that are acceptable to and shared by
group members
b) Modes of behaviour that are shared by some members of the group
c) Modes of behaviour that challenge group values and beliefs
d) Modes of behaviour that are different of those of the other
group members

4. Reasons for formation of groups include:

a) The performance of certain tasks which can be performed only
through combined efforts of individuals working together.
b) The provision of guidelines on generally acceptable behaviour.
c) The provision of protection for its membership.
d) All of the above.

5. Which of the following would be considered a formal group?

a) task force for employee birthday celebrations
b) reading group
c) bowling team
d) bringing people from various functions to solve a business dilemma

84 Group Behaviour
6. Which of the following statements about groups is true? Organizational
Behaviour
a) You need five or more people to be considered a work group.
b) The definition of groups suggests that a group is two or more people
together reason. NOTES

c) Groups can be either formal or informal.

d) Formal groups are aimed at specific social agendas.

7. What can be defined as “the ability to influence and align others

towards a common purpose”?
a) teamwork b) motivation
c) management d) leadership

8. Which one of the following best defines teamwork?

a) People working collaboratively towards common goal
b) Developing skills that will enhance project performance
c) Gathering the right people together to work on a project
d) Establishing vision and direction towards a common purpose

Group Behaviour 85
 Organizational
Behaviour

Unit-5 Leadership
NOTES

Learning Objectives
After learning this unit, you should be able to
1. Understand the basic concepts of Leadership
2. Effectiveness of Managers as Leaders
3. Various Leadership Theories and Frameworks
4. Future Perspectives of Leadership

Content
5.1 Introduction
5.2 Concept of Leadership
5.3 Traits of good Leader
5.4 Difference between Leader and Manager
5.5 Theories of Leadership
5.5.1 Ohio State and Michigan Studies
5.5.2 Black and Mouton theory
5.5.3 Likert’s Model
5.5.4 3D leadership Model
5.6 Managers as leaders
5.7 Leadership Style
5.8 Future perspectives of leadership
5.9 Test Questions
5.10 Multiple Choice Questions

5.1 INTRODUCTION

The material shall help in understanding the concept of leadership with its
importance in relevant practical areas. The various theories of leadership shall
be covered under the scope of this topic.
The understanding of the topic shall be of utmost importance in terms of
providing the right direction to the strategic functioning of the organisation which
shall be helpful both at individual and organisation level.
86 Leadership
 Organizational
Behaviour
5.2 CONCEPT OF LEADERSHIP
NOTES
Leadership can be easily understood using the simple fundamentals of
direction and providing guidance. Leadership is defined as ability to understand
the situations, act wisely as per the right-wrong aspects and motivate or inspire
others to follow and perform well.
The act of getting work done from others but in such a manner that the
decision taken by you as a leader is respected by all the members. They should
be motivated to follow it.
The importance of leader lies in making others understand how and in what
manner they can be a value/ asset for the organisation.

5.3 TRAITS OF A GOOD LEADER

• Honesty and Integrity: This is related to the ethical orientation of a

leader. A leader cannot enfold the values in others till he or she don’t
follow the same.
• Confidence: Having a belief that whatever decision a leader is taking
is right. A leader should be assertive so that others feel confident about
his or her decision.
• Inspire Others: As a leader, a person has to be a source of inspiration
for others. As John Quincy Adams puts it, “If your actions inspire others
to dream more, learn more, do more and become more, you are a leader.”
As John Quincy Adams puts it, “If your actions inspire others to dream
more, learn more, do more and become more, you are a leader.”
• Commitment and Passion : There has to be a sense of dedication. If a
leader shall give his or her best shot, then others shall automatically
be motivated to give their best and perform well in the organisation.
• Good Communicator: A leader must be a good communicator. If as a
leader, you will fail to convey your decisions or opinions, then others
shall be vague about what to follow and what not to.
• Decision Making Capabilities: In the situation where a leader has to
take a decision, the skill to analyze and understand the circumstances and
then give a particular decision after proper scanning, shall prove to be a
beneficial one.
• Accountability: As a leader, one must understand the contribution and
efforts being put in by others. In case of any error, there has to be a proper
way of telling an employee and making it correct. When an employee
does well, a leader must pat his or her back and motivate them to give
their best.
Leadership 87
 Organizational • Delegation: The task needs to be delegated in a proper manner.
Behaviour Understanding which employee shall be able to do what and providing
right delegation to a right person.
NOTES • Creativity and Innovation: A follower is different from a leader in this
aspect. A leader must give others autonomy to bring in their creativity
and find out new ways of doing things.

5.4 DIFFERENCE BETWEEN LEADER AND MANAGER

Leader Manager

5.5 THEORIES OF LEADERSHIP

Leadership and Management studies were taken up in earliest 20th century.

A kind of evolution in leadership behavior studies from the traits of effective
leaders to follower-centered leadership theories proposed in the late-20th, early
21st century.

88 Leadership
5.5.1 Ohio State And Michigan Studies Organizational
Ohio State Leadership Studies is Behavioral Leadership Theory. Series of Behaviour
studies on leadership was done by the Ohio State University in 1945 to identify
observable behaviors of leaders instead of focusing on their individual traits. NOTES
They found two critical characteristics of leadership either of which could
be high or low or independent of one another.
The research was based on questionnaires to leaders and subordinates of
the organizations.
These are known as the Leader Behavior Description Questionnaire
(LDBQ) and the Supervisor Behavior Description Questionnaire (SBDQ).

The main two critical dimensions that were identified

1. Initiating Structure Behaviour: Leaders who establish formal lines of
work ethics, who shall perform what and everyone knows what is
expected from them.
2. Consideration Behaviour: The behaviour of leaders that shows their
concern, warmth and sense of belongingness towards the employees.
The findings of Ohio State Leadership Studies suggest that effective leaders
possess a strong ability to work with others and build a cohesive team which is
balanced with the capability to create structure within which activities can be
accomplished.

Michigan Studies
This is also a behavioral leadership theory.
Empirical Studies Conducted by Institute for Social Research at University
of Michigan

Identification of two distinct styles of leadership

1. Job-centered Leadership : Managers pay close attention to
subordinates work, mainly focused on performance.
2. Employee- centered Leadership : Managers using employee- centered
leader behavior are interested in developing a cohesive work group and
ensuring that employees are satisfied with their jobs.

The findings of Ohio State Studies Findings + Concepts of Participative

Leadership = BASE OF MICHIGAN STUDIES Leadership 89
 Organizational 5.5.2 The Blake Mouton Managerial Grid
Behaviour
The two main dimensions identified are

NOTES

• Concern for People: this is the degree to which a leader considers team
members' needs, interests and areas of personal development when
deciding how best to accomplish a task.
• Concern for Results: this is the degree to which a leader emphasizes
concrete objectives, organizational efficiency and high productivity when
deciding how best to accomplish a task.

The dimensions of the grid are explained below

1. Impoverished Management- Low Results/Low People: Such kind of
concept of impoverished means "indifferent". Low in creating a proper
work structure as well as unable to build up a motivating team. Result in
disharmony.
2. Produce or Perish Management- High Results/Low People : Such
managerial style can be mainly focused on autocratism. Strict work
rules/procedures. Employees' needs are secondary to the concern for
productivity. It can lead to high performance for short run but in longer
period leads to decrease in morale of the employees.
3. Middle-of-the-Road Management- Medium Results/Medium People
Team most likely gives mediocre performance as the manager
somewhere in efforts of balancing both aspects fail to give his or her best.
4. Team Management- High Results/ High People : It is the most
effective Leadership Style. Team Managers are committed to
organsiation's mission and vision and motivates the team members to
work with right sense of direction. They prioritise both organisation's
needs and people's needs.

90 Leadership
5.5.3 Likert's Model Organizational
Behaviour
The different types of leadership styles concept is attributed to famous
psychologist Rensis Likert. His associates conducted an extensive survey in
various organisations. NOTES

The identified four styles of managerial leadership

1. Exploitative-Authoritative Leadership Style : Manager fails in having
faith on subordinates. They are seldom asked for their opinions or views.
Subordinates lack the kind of freedom to discuss about their job with the
superior.
2. Benevolent-Autocratic Leadership Style : As clear from the concept,
the manager gives freedom to the subordinates to share their ideas or
opinions but with a close policy control. There is a limit to the freedom
provided.
3. Consultative Leadership Style : Subordinates feel free to discuss things
about the job with their superior. The manager gets ideas and opinions
and tries to make constructive use of them
4. Democratic Leadership Style : In Democratic Leadership Style, the
manager has complete confidence and trust in subordinates and allows
them a direct equal participation in decision making.
Subordinates also feel completely free to discuss things about the job with
their superior. The manager always asks subordinates for their ideas and opinions
and makes constructive use of them.

5.5.4 3D-Leadership Model

The Three-Dimensional Grid or 3-D Leadership Model is developed by
Professor Bill Reddin, who introduced the concept of “situational demands”
which talks about the way in which the leader must behave to be most effective. Leadership 91
 Organizational Three-dimensional axes represent the “task-orientation”, “relationship
Behaviour orientation” and “effectiveness”. Task orientation means the extent to which the
superior directs his subordinate’s efforts towards the goal attainment. The
relationship orientation means the extent to which the manager has personal
NOTES
relations with his subordinates and finally, the effectiveness means the extent to
which the manager is successful.
When the leadership style meets the demands of the situation, then the
leadership is said to be effective else ineffective. On the basis of this, there are
four styles that a manager adopts and is shown in the figure below:

1. Separated Manager : Such a person falls in the category of Low

Task and Low Relationship orientation. He or She frames policies and
imposes them on others.
2. Related Manager – High Relationship Orientation but Low task
orientation : Such a person accepts an organisation as a social system
and likes to work with others irrespective of time frames.
3. Dedicated Manager : High Task Orientation but Low Relationship
Orientation : Only concern is productivity and performance. Does not
like to mix up with others.
4. Integrated Manager : High Task Orientation and High Relationship
Orientation : One who mixes up with the subordinates and facilitate two
way communication. His major emphasis is on building a strong
teamwork and effective communication network.

5.6 MANAGERS AS LEADERS

There is a big assumption that managers cannot be leaders and vice versa.
The real essence lies in understanding the importance of leadership traits in the
managerial position. The manager has to be a good leader. The managerial
authority blended with the traits of finding a new direction, a new way to do
things can add up to the effective functioning of the organisation.

92 Leadership
 Managers should not only be working in that close shell of their authority Organizational
which encompasses of responsibility of performance improvements. There are Behaviour
two types of new direction.
• Doing something completely new - new products, services. NOTES
• Doing the same thing only better - improving quality, efficiency,
customer service.
The first type of new direction calls for content leadership. The second type
is a mixture of leadership and management - process leadership. The process
leader initiates change but only to improve how existing directions are executed.
This is leadership with a managerial emphasis.
All three types - content leader, manager, process leader are differentiated
by what they focus on. It has nothing to do with style or personality. Leaders
influence changes in direction, managers motivate performance improvements.
For example, a lively Sales Director might have the personality we associate
with a conventional leader but if his/her focus is strictly performance
improvement then this is just management no matter how powerfully persuasive
is the Sales Director's style.

5.7 LEADERSHIP STYLE : KURT LEWIN PROPOSED

THREE MAJOR LEADERSHIP STYLES

1. Autocratic Leadership: These type of leaders make decisions without

taking into consideration the team members inputs. These styles are
useful when quick decisions need to be taken. This can lead to
absenteeism and low morale.
2. Democratic Leadership: Leaders make final decisions but team
members inputs are taken into account. This leads to high morale and
productivity.
3. Laissez-faire : Leaders give lot of freedom to team members in terms of
how they do the work and setting of deadlines. It leads to high job
satisfaction but if the team members lack the desired knowledge,
skills. It can lead to great loss.

5.8 FUTURE PERSPECTIVES OF LEADERSHIP

The major three perspectives of future leadership are as follows

• Building Shared Leadership Skills : The traditional leadership models
does not support the needs of today's leadership. There has to be a greater
focus to be given on understanding the importance of shared leadership
and making an employee equipped with the requisite skills and
knowledge for shared leadership.
Leadership 93
 Organizational • Encourage a Collaborative Culture : There has to be a focus that needs
Behaviour to be taken in the direction of collaborative culture. The togetherness
and cooperation in terms of making the things work and achieving
the desired set of goals and objectives.
NOTES
• Importance of Creativity : There is a need to understand that for an
organisation to thrive, the process of creativity and innovation needs to
be emphasized. To sustain in this dynamic and competitive world,
creativity must be encouraged so that new directions can be set to achieve
a particular set of goals and objectives.

5.9 TEST QUESTIONS

1. What is leadership? Distinguish between managers and leaders.

2. Explain Ohio and Michigan studies on leadership.
3. What is Managerial Grid? Discuss in detail Black and Mouton theory
4. Discuss 4-M Likert’s model of leadership with suitable examples.
5. Describe various leadership styles quoting suitable examples.

5.10 MULTIPLE CHOICE QUESTIONS

1. An individual who is able to exert leadership and to manage an

operation is called
a) leader. b) leader-manager
c) manager. d) first line supervisor

2. The capacity to influence people and accomplish desired objectives

is called:
a) power. b) leadership.
c) authority. d) Status

3. What are the two main dimensions of the Ohio Studies into leadership?
a) Starting position and end position
b) Initial environment and changed environment
c) Organisational structure and conditioning
d) Initiating structure and considerations

94 Leadership
4. Who of the following is a leading writer on contingency theory of Organizational
leadership? Behaviour
a) Rosabeth Kanter b) Joan Woodward
c) Rensis Likert d) Fred Fiedler NOTES

5. What do you call a style of leadership that takes account of others'

views, opinions and ideas?
a) Laissez-faire b) People-oriented
c) Democratic d) Autocratic

6. Leadership is.
a) the process of influencing a group toward the achievement of goals
b) a group that achieves goals.
c) the function of influencing a group towards the achievement
of goalsd.
d) directing a group towards the achievement of goals

7. Michael is a type of manager who is concerned primarily with

accomplishing goals and objectives and concentrates on the task itself.
His behavioral style is called:
a) authoritarian b) democratic.
c) task oriented. d) people oriented

8. Which of the following statements about leadership is false?

a) Not every leader is manager.
b) When people operate as leader their role is always clearly
established and defined.
c) Leadership doesn’t necessarily takes place within a hierarchial
structure of an organization.
d) All of the above.

Leadership 95
 Organizational
Behaviour

Unit-6 The Organization System

NOTES

Learning Objectives
After learning this Unit, you should be able to:
1. Understand the basic concepts of stress management
2. Types of stress and burnout
3. Need of cross cultural training in this fast changing economy
4. Concepts of organizational change

Content
6.1 Introduction
6.2 Meaning of stress
6.3 Types of stress
6.4 Burnout
6.5 Strategies to manage stress
6.6 Workforce Diversity
6.7.1 Definition of Culture
6.7.2 Culture’s Function
6.7.3 Need and Importance of Cross Cultural Training
6.8 Organizational Change

6.1 INTRODUCTION

Stress is the most common problem that affects almost all of us at some
point in our lives. There are many factors in day to day life that are giving rise
to stress. There has to be certain ways that can help an employee fights stress.
In this topic of stress management, we will be able to understand the concept
of definition of stress, various factors that affect stress, burnout, and how an
employee can successfully come out of stress.

The Organization
96 System
 Organizational
Behaviour
6.2 MEANING OF STRESS
NOTES
A state of tension that is
experienced by the individuals as a
result of extraordinary demands,
opportunities and other types of
constraints that an individual undergoes
in lifetime. It is basically defined as how
the body responds to different types of
uncomfortable situations.

6.3 TYPES OF STRESS

Stress could be of various types. Stress could be related to organization or

job of a person; factors in the external environment; the norms, work style,
methods or targets laid by teams or groups of which an individual is a member;
or due to individual’s personality traits.
The various types of stress are as follows
1. Organizational Stress: This kind of stress has its origin to the various
organizational causes. The major ones being bad working conditions,
incompatible job role, job security , favoritism, and many more. The
major threat of corporate level strategies like downsizing, restructuring
leads to a major challenge for an employee coping up with the levels of
stress which further affects the performance.
2. Extra organizational Stress :Extra organizational stressors are the
external forces such as globalization, technological or societal change,
family problems, financial crises, personal health, etc., that can increase
stress for an employee. Studies have showed that things happening
outside the work place negatively affect the job performance.
The modern living style has increased the stress level and decreased the
personal health of people. The routine life of the people is becoming so
fast day by day with urbanization that the chances of increased stress and
the impact of negative stress on work, have expanded. The Organization
System 97
 Organizational 3. Group Stress : This kind of stress is a result of team work. The various
Behaviour kinds of differences that exist amongst the employees, opinions, leads to
conflict which ultimately gives rise to stress.
NOTES If such social support is lacking in the group, the employee’s stress level
rises as he is not able to share his feelings with anyone during his working
hours. This can lead to dissatisfaction and irritation which can cause
health issues. The group leader should keep in mind the togetherness of
the group as it plays the most important role in order to achieve the
desired goals.
4. Individual Stress: Individual stress is the one that differs depending
upon the personality traits of a person like, tolerance, rigidity,
supportiveness, anxiety, dedication, commitment to work etc. A situation
may become a threat for one individual and an opportunity for another
individual depending upon his perception, personality, experience and
social support.

6.4 BURNOUT

The Organization
98 System
 Organizational
Behaviour
6.5 STRATEGIES TO MANAGE STRESS
NOTES
Basically there are two main categories of managing stress
1. Individual Level Strategies: Coping strategies to be used at individual
level
2. Organizational Level Strategies: Coping strategies at organizational
level
1. Time Management
2. Physical Exercise
3. Meditation
4. Social Network
5. Self Control

1. Rewarding Employees
2. Employee Involvement
3. Setting of SMART goals
4. Effective Communication
5. Organizing certain wellness programs like yoga camps, team outings etc.

6.6 WORKFORCE DIVERSITY

It is defined as a workforce consisting of broad mix of workers who belong

to different racial and ethnic backgrounds of different ages and genders belonging
to different cultures, nationalities.

The Organization
System 99
 Organizational
Behaviour

NOTES

• Goals of Workforce Diversity

1. To identify, attract and retain the best talent
2. To assess and understand the value of marketplace
3. Improving productivity
4. Enhancing the creativity
5. Competitive Advantage
6. Blended decision making
1. Primary Dimension: Inborn differences such as age, gender, race,
ethnicity, sexual orientation
2. Secondary Dimension: Includes religion, family background,
educational qualification, work culture, marital status

6.6.1 Definition of Culture

Organizational culture is defined as set of beliefs, values that govern
an individual behaviour and contribute to unique social and psychological
environment of an organisation.

6.6.2 Functions of Culture

• Employee gets to know the underlying values
• Foundation for the complete organisation to run
• Maintenance of discipline and smooth working environment
• Creation of a meaningful behaviour
• Common understanding and cooperation amongst employees

6.6.3 Need of Cross-Cultural Training

It involves any sort of interaction that involves more than one cultures.
• Helps people overcome bias and prejudice
• Improvement of communication skills and emotional intelligence
• Improves trust between people and removes any sort of potential barriers

The Organization
100 System
 Organizational
Behaviour
6.7 ORGANIZATIONAL CHANGE
NOTES
Studying as to how an organisation changes with time in order to compete
with fast changing world to sustain competitive advantage.

The three main phases of organizational change are as follows

Unfreezing phase involves getting rid of the old traditions or the kinds of
structure followed to adapt to the change that takes place
Transition phase involves actual transiting from old to new structure. It
involves the working of actual phenomenon of organizational change taking place
Freezing involves the stability phase where the change has been
accepted and acquainted with positively and the entire organisation gets back
in form

6.8 TEST QUESTIONS

• Explain the meaning and types of stress.

• Describe various stress coping strategies.
• What is workforce diversity.
• Define culture. Explain the functions of culture
• What is organization change? Explain the organization change
management process.
• Explain resistance to change. How is it managed.

6.9 MULTIPLE CHOICE QUESTIONS

1. Stress management is about learning

a) How to avoid the pressures of life
b) How to develop skills that would enhance our body’s adjustment
when we are subjected to the pressures of life
c) Both ‘a’ & ‘b’ are true
d) None of the above

The Organization
System 101
 Organizational 2. Which of the following are the basic sources of stress
Behaviour
a) Social Stressors b) Physiological
c) Thoughts d) All of the above
NOTES

3. Examples of extraorganizational stressors are

a) Globalization b) Technological or societal changes
c) Team work d) Only ‘a’ & ‘b’ are true

4. Primary dimensions of work force diversity are

a) Age b) Family background
c) Gender d) Only ‘a’ and ‘c’ are true

5. The aim of cross cultural communication training is to :

a) Create strong cultural ties b) Give social status
c) Improve behaviour d) Develop business etiquette

6. An individual’s behaviour in a foreign society becomes noticeable

when it ________ in relation to the foreign culture.
a) Deviates b) Conforms
c) Overlaps d) Irritates

*****

The Organization
102 System