Unit 1

organisational behaviour
Meaning of OB
The field of organisational behaviour deals with human behavior in organizations. It is a
multidisciplinary field that seeks knowledge of behaviour in organisational settings by objectively
studying individual, group, and organizational processes. The concepts and approaches of
organizational behaviour are also more concerned with society.
Definition
According to Davis and Newstram, “Organisational behaviour is the study and application of
knowledge about how people act within organisations.”
Fred Luthans states, “Behaviour is directly concerned with the understanding, prediction and control
of human behaviour in organisations.”
Nature/ characteristics of OB are as given below:
1. OB is a part of general management, not the whole management. It represents behavioural
approach to management.
2. OB contains a body of theory, research, and application associated with a growing concern for
people at work. It helps in understanding human behaviour in work organizations.
3. OB is a human tool for human benefit. It helps in predicting the behaviour of individuals.
4. OB is an interdisciplinary field of study. It tries to synthesize knowledge drawn from various
behavioural and social sciences, such as Psychology, Sociology, Anthropology, Political Science, and
Economics. OB is an applied behavioural science.
5. OB involves three levels of analysis of behaviour-individual behaviour, group behaviour and
behaviour of the organization itself.
6. OB is an action-oriented and goal-directed discipline. It provides a rational thinking about people
and their behaviour
7. OB is both a science and an art. The systematic knowledge about human behaviour is a science.
The application of behvioural knowledge and skills clearly leans towards being an art.
8. OB seeks to fulfil both employees’ needs and organizational objectives.

SCOPE OF OB
“OB is a field of study that investigates the impact that individuals, groups, and structure have on
behaviour within organizations, to apply such knowledge towards improving an organisation’s
effectiveness”. The scope of OB involves three levels of behaviour in organizations: individuals,
groups and structure.
1. Individual Behaviour
(i) Personality (ii) Perception (iii) Values and Attitudes (iv) Learning (v) Motivation
2. Group Behaviour
(i) Workgroups and group dynamics (ii) Dynamics of conflict (iii) Communication (iv) Leadership (v)
Morale
3. Organization: Structure, Process and Application
(i) Organizational Climate (ii) Organizational Culture (iii) Organizational Change (iv) Organizational
Effectiveness (v) Organizational Development

Importance of Organisational Behaviour

1. Skill Improvement
The study of Organisational Behaviour helps to improve skills. This includes the ability of employees
and the use of knowledge to become more efficient. Organisational Behaviour study also improves
managers' as well as other employees' work-skill.
2. Understanding Consumer Buying Behaviour
It is also an important part of improving the marketing process by understanding consumer buying
behaviour.
3. Employee Motivation
Organisational Behaviour (OB) helps to understand the basis of Motivation and different ways to
motivate employees properly.
4. Nature of Employees
Understanding the nature of personnel and employees is important to manage them properly.
With the help of Organizational behaviour, we can understand whether employees or people are –
 Introvert
 Extrovert
 Motivated
 Dominating
 Other
5. Anticipating Organisational events
The scientific study of behaviour helps to understand and predict organisational events.
For Example, Annual Business Planning, Demand Management, Product line management,
Production Planning, Resource Scheduling, Logistics, etc.
6. Efficiency & Effectiveness
The study of organisational behaviour helps to increase the efficiency and effectiveness of the
organisation
7. Better Environment of Organisation
OB helps to create a healthy, ethical and smooth environment in an organisation.
8. Optimum or Better Utilization of Resources
The study of OB helps to understand employees and their work styles and skills better way.
By understanding this, management can train and motivate employees for optimum utilization of
resources.
9. The goodwill of organization

Organisational Behaviour helps to improve the Goodwill of organization.

Individual Differences
Individual differences in Organizational Behavior (OB) refer to the unique characteristics, traits, and
attributes that distinguish one person from another in the workplace.

Definition:
Individual differences are variations in characteristics, abilities, and personalities that influence
individuals' behavior, performance, and interactions within an organization.

Key Aspects:
1. Uniqueness: Each individual has distinct characteristics.
2. Variability: Differences exist among individuals.
3. Predictive Value: Individual differences predict behavior and performance.

Factors Influencing Individual Differences:

1. Genetics
2. Environment
3. Culture
4. Education
5. Experience
6. Socialization
7. Personality development

Benefits of Understanding Individual Differences:

1. Improved employee engagement
2. Enhanced team effectiveness
3. Better decision-making
4. Increased innovation
5. Competitive advantage
6. Effective leadership
7. Positive organizational culture

Types of Individual Differences

1. Cognitive Differences

a) Intelligence: verbal, spatial, mathematical

b) Memory: short-term, long-term, working memory
c) Problem-solving: analytical, creative, logical
d) Decision-making: rational, intuitive, impulsive
e) Learning abilities: visual, auditory, kinesthetic

2. Personality Differences

a) Extraversion: outgoing, sociable, assertive

b) Agreeableness: cooperative, empathetic, kind
c) Conscientiousness: responsible, organized, dependable
d) Neuroticism: anxious, angry, vulnerable
e) Openness to experience: curious, open-minded, imaginative

3. Emotional Differences

a) Emotional intelligence: self-awareness, empathy, social skills

b) Emotional stability: calm, resilient, adaptable
c) Emotional reactivity: sensitive, impulsive, emotional
d) Mood: optimistic, pessimistic, stable

4. Motivational Differences

a) Needs: physiological, safety, love, esteem, self-actualization (Maslow's Hierarchy)

b) Values: personal, cultural, social
c) Goals: short-term, long-term, intrinsic, extrinsic
d) Expectancies: self-efficacy, outcome expectancy
e) Self-efficacy: confidence, motivation

5. Learning Differences
 a) Learning styles: visual, auditory, kinesthetic, tactile
b) Learning abilities: verbal, spatial, mathematical
c) Intelligence quotient (IQ): cognitive ability
d) Learning disabilities: dyslexia, dysgraphia, dyscalculia

6. Demographic Differences

- Age: generational differences, life stage

- Gender: male, female, non-binary
- Culture: ethnic, national, linguistic
- Education: level, field, institution
- Socioeconomic status: income, occupation, education

7. Attitudinal Differences

- Job satisfaction: positive, negative, neutral

- Organizational commitment: affective, continuance, normative
- Work ethic: strong, weak, flexible
- Attitudes towards change: resistant, open, enthusiastic
- Attitudes towards authority: submissive, assertive, rebellious

8. Physiological Differences

- Physical abilities: strength, endurance, agility

- Health: physical, mental, emotional
- Wellness: physical, mental, emotional
- Disability: physical, sensory, cognitive
- Physical attractiveness: perceived attractiveness

9. Psychological Differences

- Mental health: anxiety, depression, trauma

- Self-concept: self-esteem, self-image
- Self-efficacy: confidence, motivation
- Personality disorders: borderline, narcissistic, obsessive-compulsive
- Psychological well-being: happiness, life satisfaction

10. Social Differences

- Social skills: communication, teamwork, leadership

- Interpersonal skills: empathy, conflict resolution
- Communication style: assertive, passive, aggressive
- Conflict resolution style: avoiding, competing, collaborating
- Social status: perceived position in social hierarchy
11. Cultural Differences

- Cultural values: individualism, collectivism

- Cultural norms: social, moral, religious
- Language: verbal, nonverbal, linguistic
- Customs: traditions, rituals, practices
- Traditions: historical, cultural, familial

12. Lifestyle Differences

- Work-life balance: integration, separation

- Leisure activities: hobbies, entertainment
- Health habits: exercise, nutrition, sleep
- Financial management: saving, spending, investing
- Personal values: moral, ethical, spiritual

13. Personality Types

- Myers-Briggs Type Indicator (MBTI): 16 personality types

- DISC Assessment: dominance, influence, steadiness, conscientiousness
- Big Five Personality Traits: extraversion, agreeableness, conscientiousness, neuroticism, openness
- Enneagram Personality System: 9 personality types

14. Learning Styles

- Visual: visual, spatial, graphical

- Auditory: auditory, musical, verbal
- Kinesthetic: tactile, sensory, experiential
- Tactile: hands-on, practical, experimental
- Verbal: linguistic, logical, analytical

15. Intellectual Styles

- Analytical: logical, systematic, methodical

- Intuitive: creative, imaginative, innovative
- Creative: artistic, expressive, original
- Practical: applied, technical, problem-solving
- Logical: rational, systematic, analytical

Intelligence tests
Intelligence tests, also known as cognitive ability tests, assess various aspects of cognitive
functioning, such as:

Types of Intelligence Tests:

Verbal Intelligence Tests: A verbal intelligence test measures a person's ability to use language to
solve problems and communicate. It assesses a person's vocabulary, reading and writing skills, and
how they use language to reason and explain things.
Verbal intelligence tests are used in educational settings and clinical assessments.

1. Wechsler Adult Intelligence Scale (WAIS) - Verbal Comprehension Index

2. Stanford-Binet Intelligence Scale (SB5) - Verbal Reasoning
3. Cattell Culture Fair Test - Verbal Section
4. Wonderlic Test - Verbal Section

Nonverbal Intelligence Tests: Nonverbal intelligence tests assess a person's reasoning and problem-
solving skills without using language.
Nonverbal intelligence tests are designed to activate a person's logical, spatial, and abstract
reasoning.

1. Raven's Progressive Matrices (RPM)

2. Wechsler Adult Intelligence Scale (WAIS) - Perceptual Reasoning Index
3. Stanford-Binet Intelligence Scale (SB5) - Nonverbal Reasoning
4. Cattell Culture Fair Test - Nonverbal Section

Spatial Intelligence Tests: Spatial reasoning tests are tests that are designed to determine a
candidate's ability to manipulate 2D and 3D objects, visualize movements and change between
shapes, and spot patterns between those shapes

1. Wechsler Adult Intelligence Scale (WAIS) - Perceptual Reasoning Index

2. Stanford-Binet Intelligence Scale (SB5) - Spatial Reasoning
3. Ravens Progressive Matrices (RPM) - Spatial Section
4. Mental Rotations Test

Memory Intelligence Tests: Memory and intelligence tests measure different aspects of mental
functioning, including short-term and long-term memory, reasoning, and problem-solving.

1. Wechsler Memory Scale (WMS)

2. California Verbal Learning Test (CVLT)
3. Rey-Osterrieth Complex Figure Test
4. Memory Quotient (MQ)

Emotional Intelligence Tests: Emotional intelligence tests measure a person's ability to recognize and
understand their emotions, as well as how they relate to others. These tests can be used in the
workplace to help organizations understand how employees manage stress, relationships, and
change.

1. Mayer-Salovey-Caruso Emotional Intelligence Test (MSCEIT)

2. Bar-On Emotional Quotient Inventory (EQ-i)
3. Trait Emotional Intelligence Questionnaire (TEIQue)
4. Emotional Intelligence Quotient (EQ)

Benefits of Personality Tests

The benefits of personality tests extend beyond the recruitment process. They impact various facets
of an organization and its workforce. Some benefits of a personality test are listed below.
• Enhanced Self-Awareness: Individuals gain valuable insights into their strengths, weaknesses, and
personality traits. This self-awareness can empower employees to make informed career choices and
focus on personal development.
• Effective Communication : Understanding personality types within a team facilitates better
communication and collaboration. When team members comprehend each other’s preferences and
communication styles, they can interact more effectively, reducing misunderstandings and conflicts.
• Talent Management : Organizations can strategically place individuals in roles that align with their
personality traits by decoding the results of a personality assessment test. Companies can optimize
talent management and maximize productivity by matching employees with positions that
complement their strengths.
• Conflict Resolution : Early identification of potential conflicts enables organizations to proactively
address issues before they escalate. This not only minimizes disruptions but also creates a more
harmonious work environment.
• Employee Satisfaction: Understanding of employees’ needs can improve job satisfaction and
retention rates. Further, satisfied employees spend more time in a company, resulting in better
performance and company results.
• Leadership Development : Identifying leadership potential early on allows organizations to nurture
future leaders. This targeted approach to leadership development is more efficient and effective.
• Predictive Accuracy : Personality assessment test often predicts future job performance accurately.
This predictive accuracy is an invaluable asset in the recruitment process.
Adopt These Tips to Improve Personality Test Results
To make the most of personality tests, individuals can follow these tips to ensure accurate and
meaningful results:
• Be Honest and Authentic: Answer questions truthfully to ensure the accuracy of your results.
Honesty is crucial for valid assessments.
• Prepare Mentally: Relax before the test to reduce stress and anxiety. A calm state of mind allows
for clearer thinking.
• Read Instructions Carefully: Understand what is expected before starting the test. Familiarize
yourself with the format and structure.
• Take Time for Self-Reflection: Consider your personal and work experiences to provide accurate
responses. Reflect on your behavior in various situations.
• Follow Consistency: Answer similar questions consistently to maintain the test’s reliability.
Inconsistency can lead to less accurate results.
• Seek Feedback: Use the results to seek feedback from peers, mentors, or professionals. External
perspectives can provide additional insights.
• Discuss Results: Engage in conversations with peers or mentors to gain further insights. Discussion
can help you better understand your strengths and areas for improvement.
• Interpret Results Objectively: Avoid over-analyzing or overreacting to your results. Remember that
personality tests provide a snapshot of your traits at a specific moment in time.
• Use Results Constructively: Apply the feedback from the test to improve your personal and
professional life. Focus on areas for development and leverage your strengths.