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UNIT – IV
UNIT IV: Individual Behaviour: Perception-Perceptual process- Impression management-
Personality development – Socialization – Attitude- Process- Formation- Positive attitude-
Change – Learning – Learning organizations- Reinforcement Motivation – Process- Motives –
Theories of Motivation: Maslow’s Theory of Human Needs, Douglas McGregor’s Theory X and
Theory Y, Herzberg’s Two-Factor Theory of Motivation.

 Perception-Perceptual process:
Perception:
Perception is an intellectual process of transforming sensory stimuli to meaningful
information. It is the process of interpreting something that we see or hear in our mind and use
it later to judge and give a verdict on a situation, person, group etc.
It can be divided into six types

 Of sound − the ability to receive sound by identifying vibrations.

 Of speech − the competence of interpreting and understanding the sounds of language
heard. Touch − Identifying objects through patterns of its surface by touching it.
 Taste − the ability to receive flavor of substances by tasting it through sensory organs
known as taste buds.
 Other senses − they approve perception through body, like balance, acceleration, pain,
time, sensation felt in throat and lungs etc.
 Of the social world − It permits people to understand other individuals and groups of
their social world. Example: Priya goes to a restaurant and likes their customer service,
so she will perceive that it is a good place to hang out and will recommend it to her
friends, who may or may not like it. Priya’s perception about the restaurant is good.

Perceptual Process:
Perceptual process are the different stages of perception we go through. The different stages
are:

1. Receiving: Receiving is the first and most important stage in the process of perception.
It is the initial stage in which a person collects all information and receives the
information through the sense organs
2. Selecting: Selecting is the second stage in the process, in which we focus our attention
on certain incoming sensory information. In selection, we choose stimuli that attract our
attention.
3. Organizing: Organizing is the third part of the perception process, in which we sort and
categorize information that we perceive based on innate and learned cognitive patterns.
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4. Interpreting: After we have attended to a stimulus, and our brains have received and
organized the information, we interpret it in a way that makes sense using our existing
information about the world Interpretation simply means that we take the information
that we have sensed and organize and turn it into something that we can categorize.

Importance of Perception in OB:

We need to understand what the role of perception in an organization is. It is very important in
establishing different role of perceptions like –
1. Understanding the tasks to be performed.
2. Understanding associated importance of tasks allotted.
3. Understanding preferred behavior to complete respective tasks.
4. Clarifying role perceptions. 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.

Errors in perception:
Many times the prejudices in the individual, time of perception, unfavourable background, lack
of clarity of stimulus, confusion, conflict in mind, and other factors are responsible for errors in
perception.
There are some errors in perception;

 Illusion.
 Hallucination.
 Halo Effect.
 Stereotyping.
 Similarity.
 Horn Effect.
 Contrast.

Illusion:
The illusion is a false perception. Here the person will mistake a stimulus and perceive it
wrongly.
For example, in the dark, a rope is mistaken for a snake or vice versa. The voice of an unknown
person is mistaken as a friend’s voice. A person standing at a distance who is not known may
be perceived as a known person.
Hallucination:
Sometimes we come across instances where the individual perceives some stimulus, even
when it is not present.
This phenomenon is known as a hallucination. The person may see an object, person, etc. or he
may listen to some voice though there are no objects and sounds in reality.
Selective Perception:
Selective perception is when people selectively interpret what they see on the basis of their
interests, background, experience, and attitudes.
It means any characteristics that make a person, object, or event stand out will increase the
probability that it will be perceived.
Because it is impossible for us to assimilate everything we see, only certain stimuli can be
taken in.
Halo Effect:
The individual is evaluated on the basis of perceived positive quality, feature, or trait. A halo
effect operates when we draw a general impression about an individual based on a single
characteristic, such as intelligence, sociability, or appearance.
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In other words, this is the tendency to rate a man uniformly high or low in other traits if he is
extraordinarily high or low in one particular trait: If a worker has few absences, his supervisor
might give him a high rating in all other areas of work.
Stereotyping:
People usually can fall into at least one general category based on physical or behavioral traits
then they will be evaluated. When we judge someone on the basis of our perception of the
group to which he or she belongs, we are using a shortcut called stereotyping.
For example, a boss might assume that a worker from a Middle East country is lazy and cannot
meet performance objectives, even if the worker tried his best.
Similarity:
Often, people tend to seek out and rate those who are similar to themselves more positively.
This tendency to approve of similarity may cause evaluators to give better ratings to
employees who exhibit the same interests, work methods, points of view, or standards.
Horn Effect:
When the individual is completely evaluated based on a negative quality or feature perceived,
this results in an overall lower rating than an acceptable rate.
He is not formally dressed up in the office. That’s why he may be casual at work too.
Contrast:
The tendency to rate people relative to others rather than the individual performance he or she
is doing. Rather will evaluate an employee by comparing that employee’s performance with
other employees.
In the early 20th Century, Wilhelm Wundt identified contrast as a fundamental principle of
perception, and since then, the effect has been confirmed in many different areas.
These effects shape visual qualities like color, brightness, and other kinds of perception,
including how heavy an object feels. One experiment found that thinking of the name “Hitler”
led to subjects rating a person as more hostile.

When Perception Fails:

Perception often provides a false interpretation of sensory information.
Such cases are known as illusions, a term used by psychologists to refer to incorrect
perceptions. There are two types of illusions:
 Those due to physical processes and
 Those due to cognitive processes.
Illusions due to distortion of physical conditions include hallucination, in which an individual
perceives objects which are non-existent, as for example, water on a dry road. Cognitive
processes result in many illusions but more common shape illusions which often result in
unsettling consequences. Consider a real-world example involving the Poggendorf illusion. In
this illusion, a line disappears at an angle behind a solid figure, reappearing at the other side at
what seems to be the incorrect position. Incorrect perceptions of the world around them may
lead to problems for personnel. Budding managers who flame out do so because they fail to
read situations properly and act accordingly. They develop poor working relationships, are too
authoritarian, or have a conflict with upper management. As a result, their careers come to
screeching halt. This should be avoided and they had been able to correctly perceive what they
should be doing and had the emotional maturity and ability to make the necessary changes.
Why Perception Vary:
Our perceptions vary from person to person, and the meaning we take from those
perceptions varies. This is why people have different tastes in music, art, architecture, clothes,
etc.
Different people perceive different things about the same situation. But more than that, we
assign different meanings to what we perceive.
And the meanings might change for a certain person.
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One might change one’s perspective or simply make things mean something else. Two people
with identically tested seeing and hearing will still have different tastes in what they like to see
and hear.
The way we perceive the world around us varies and is as unique as our individual
personalities. Even though we might look at the same picture, what we interpret will vary
depending on a number of factors, including what we expect to see.
Basically, perception is a very interesting facet of life and business. How we perceive our world
and how we think our world, perceives us can dictate how we act and how we respond in
certain situations.
Thus, perception, or apprehending by means of the senses or the mind, can be a very powerful
and influential aspect of our lives. It can direct our actions and our thoughts, which in many
ways guide who we are.

 Impression Management:
Impression management is a conscious or subconscious process in which people attempt to
influence the perceptions of other people about a person, object or event by regulating and
controlling information in social interaction.
Impression Management (IM), also called self-presentation, is the conscious or
subconscious process in which people attempt to influence others’ perception about a person,
object or event by regulating and controlling information in social interactions.
Techniques of Impression Management:
Impression management refers to people’s attempts to control and influence the
impression others have of them. There are approximately seven Impression Management
techniques. These techniques are all used in daily life. At work, at home and during other
occasions.

1. Conformity: Conformity means being accepted and is intended to let others enjoy the
surroundings or the people in the surroundings. This technique is applied by companies when
they have employees come together to work together and in doing so ensure that the
employees feel accepted and comfortable.
2. Excuses: The second Impression Management technique concerns excuses. Excuses
generally refer to a person’s explanation about a negative or unacceptable event. This
explanation is given to avoid a severe punishment or judgment. Excuses are often made. When
being late for a meeting, or when a driver is fined for failing to wear his seatbelt.
3. Acclaim; Acclaim means proudly greeting the audience because someone knows he or she
did their job perfectly. Someone does this with a sense of excellence about himself. In the
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business world, this could refer to a project team member who is praised by the project
manager because of a good idea or initiative. This encourages other employees to work harder
and better.
4. Flattery: Flattery means excessively complimenting someone else to appear perceptive and
likeable. Flattery is an assertive social technique for managing others’ impressions to increase
one’s social attractiveness. This is done by saying things that flatter, praise or compliment the
other. This impression technique is especially common in the online marketing world.
5. Self-promotion: Self-promotion is about emphasizing one’s best characteristics, or
downplaying one’s shortcomings. This draws the attention to one’s own achievements. This
phenomenon is particularly frequent in the business world. An Impression Management
example of this is a salesman who tells his boss: ‘colleague x has taken three years to reach the
number of sales transactions I’ve concluded in six weeks.’
6. Favors: Favors is another popular technique, both in business and in everyday life. Favors
are about doing something nice for others to receive acceptance and approval from them. For
instance, a salesman of luxury cars could offer his customer tickets to the theatre because he
can’t use them himself.
7. Association: Association concerns improving or protecting one’s image by managing
information about people and things with which one is associated.

 Personality development:
Personality development is defined as a process of developing and enhancing one’s personality.
Personality development helps an individual to gain confidence and high self-esteem.
Personality development also is said to have a positive impact on one’s communication skills
and the way he sees the world. Individuals tend to develop a positive attitude as a result of
personality development.
Definition:
Personality development is the development of the organized pattern of behaviors and
attitudes that makes a person distinctive. Personality development occurs by the ongoing
interaction of temperament, character, and environment.
Determinants of Personality:
Following are the factors which help in shaping one’s personality:
1. Heredity - Heredity refers to factors that are determined once an individual is born. An
individual’s physique, attractiveness, body type, complexion, body weight depend on
his/her parents biological makeup.
2. Environment - The environment to which an individual is subjected to during his growing
years plays an important role in determining his/her personality. The varied cultures in
which we are brought up and our family backgrounds have a crucial role in shaping our
personalities.
3. Situation - An individual’s personality also changes with current circumstances and
situations. An individual would behave in a different way when he has enough savings with
him and his behavior would automatically change when he is bankrupt.
4. An individual’s appearance, character, intelligence, attractiveness, efficiency, style
determine his/her personality.
Importance of personality development:
Personality development is important because it enables people to succeed in all fields of their
life. It improves the relationship between the persons, helps one to grow in their career, and
improves the performance in every field they work. That is personality development helps people
to obtain success and happiness in professional as well as personal life.
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Personality development is important because it helps you to live your life in a better way. It
builds confidence in you, help you to look your life in a positive way, creates positive energy within
you, improves your health, improves your skills, decreases your stress, and make you a more
pleasing personality.
1. Personality development improves the confidence level. Personality development helps a
person to understand the self. It helps him/her to develop characteristics and traits within
them. It helps you to face all situations in life with a smile.
2. Personality development helps you to live a positive way of life. It helps people to face
difficult situations and find an appropriate solution to the same. This develop one to analyse
situation in a correct manner and avoid negative attitude.
3. Personality development decreases stress. As personality development helps you to
understand the ways to dealt with difficult situations, it decreases stress. It encourages you to
look into the brighter side of the life.
4. Personality development improves your skills. Improving skills and expanding knowledge
is a method of personality development. As a result, if you improve your personality, your skills
will also be enhanced. Your communication skills, management skills, presentation skills, etc.
are also improved by personality development.

 Socialization:
Meaning: In sociology, socialization is the process of internalizing the norms and ideologies of
society. Socialization encompasses both learning and teaching and is thus "the means by which
social and cultural continuity are attained".

Humans need social experiences to learn their culture and to survive.

Socialization essentially represents the whole process of learning throughout the life
course and is a central influence on the behavior, beliefs, and actions of adults as well as of
children.

Socialization as a concept originated concurrently with sociology, as sociology was defined as

the treatment of "the specifically social, the process and forms of socialization, as such, in
contrast to the interests and contents which find expression in socialization”. In particular,
socialization consisted of the formation and development of social groups, and also the 89
development of a social state of mind in the individuals who associate. Socialization is thus
both a cause and an effect of association. This process of molding is called ‘Socialization’

Definition:
1. According to MacIver, “is the process by which social beings establish wider and
profounder relationships with one another, in which they become more bound up with, and
moa perceptive of the personality of themselves and of others and build up the complex
structure of nearer and wider association.”
2. Kimball Young writes, “Socialization will mean the process of inducting the individual into
the social and cultural world; of making him a particular member in society and its various
groups and inducting him to accept the norms and values of that society…. Socialization is
definitely a matter of learning and not of biological inheritance.”
3. H. T. Mazumdar defines socialization as “the process whereby original nature is
transformed into human nature and the individual into person
Socialization may be differentiated from sociality and socialism. Sociality is a quality,
socialization is a process. Sociality may mean the capacity to mix with others, to enter into
relations with them easily and comfortably. Man is a socialized animal, though he may not
possess very much sociality in the common sense of the term.
In the process of socialization one comes to acquire the quality of sociality.
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Importance of Socialization:
1. Socialization prepares people to participate in a social group by teaching them its norms
and expectations.
2. Socialization has three primary goals: teaching impulse control and developing a
conscience, preparing people to perform certain social roles, and cultivating shared sources
of meaning and value.
3. Socialization is culturally specific, it teaches to the students about their culture.
4. Socialization teaches impulse control and helps individuals to develop a conscience.
5. Socialization teaches individuals how to prepare for and perform certain social roles -
occupational roles, gender roles, and the roles of institutions such as marriage and
parenthood.
6. Socialization cultivates shared sources of meaning and value. Through socialization, people
learn to identify what is important and valued within a particular culture.
7. Socialization helps to learn cognitive development - the development of thinking, knowing,
perceiving, judging, and reasoning. Children develop these abilities through things
occurring around them.
8. Socialization helps to develop skills necessary for living

 Attitude:
Attitude is defined as a more or less stable set of predispositions of opinion, interest or
purpose involving expectancy of a certain kind of experience and readiness with an
appropriate response.
Attitudes are also known as “frames of reference“. They provide the background against
which facts and events are viewed. An attitude describes persons’ enduring favorable or
unfavorable cognitive evaluations, feelings, and action tendencies toward some object or idea.
People have attitudes regarding almost everything such as religion, politics, cloth, music, food.
A person’s attitudes settle into a coherent pattern and to change one may require difficult
adjustment in many others. Thus, a company would be well advised to fit its product into
existing attitudes rather than to try changing people’s attitude.

1. Attitude Definition Attitudes are evaluation statements either favorable or unfavorable or

unfavorable concerning objects, people or events. They reflect how one feels about
something. - Robbins
2. Attitude is a mental and neutral state of readiness organized through experience, exerting a
directive or dynamic influence upon individual’s response to all objects and situations with
which it is related. - G.W. Allport
3. Attitude is a tendency or predisposition to evaluate an object or symbol of that object in a
certain way. - Katz and Scotland

Meaning of Attitude:
In simple words, an “attitude” is an individual’s way of looking or an individual’s point of
view at something.
To be more specific, an “attitude” may be defined as the mental state of an individual,
which prepares him to react or make him behave in a particular pre-determined way. It is
actually an acquired feeling.
Attitude is the mixture of beliefs and feelings that people have about situations, specific
ideas or other people.
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Components of Attitude:

1. Cognitive component
Beliefs are the cognitive components of consumer attitude. Cognitive component of attitude is
associated with the value statement. It consists of values, belief, ideas and other information
that a person may have faith in.
2. Affective component
Affective is the emotive component of consumer attitude. Affective component of attitude is
associated with individual feelings about another person, which may be positive, neutral or
negative.
3. Behavioral component
Intention is the behavioral component of consumer attitude. Behavioral component of attitude
is associated with the impact of various condition or situations that lead to person
behavior based on cognitive and affective components.

Characteristics of Attitude:
1. Attitude are predispositions: Attitude are predispositions of purpose, interest or opinion
of the person to assess some objects in a favourable or an unfavourable manner.
2. Attitude are different from values: are different from values: Values are the ideals,
whereas attitudes are narrow, they are our feelings.
3. Attitude are evaluative statement: are evaluative statements: either favourable or
unfavourable concerning the objects, people or events.
4. Attitude influence human behavior: A positive attitude towards a thing will influence
human behavior towards the thing favorably and vice-versa.
5. Attitude have intensity: It refers to the strength of the effective component. For example,
we may dislike an individual but the extent of our disliking would determine the intensity of
our attitude towards the person.
6. Attitude are learnt: Attitude is not inborn phenomenon. Attitude are learnt through social
interaction and experience.

Types of Attitude:

1. Job satisfaction
A collection of positive and/or negative feelings that an individual holds toward his or her job.
A person will hold a positive attitude if had a high level of satisfaction, while dissatisfied people
will generally display a negative attitude towards life. When we talk about attitude, we
generally speak about job satisfaction because they are inter-related in organizational
behavior.
2. Job involvement
Job involvement refers to the degree to which a person identifies himself (psychologically)
with his job, actively participates and considers his perceived performance level important to
self-worth. (Robbins)
Higher job satisfaction leads to low absenteeism & employee turnover and indicates that the
individual cares for his job.
3. Organizational commitment
Organizational commitment refers to a degree to which an employee identifies himself with the
organizational goals and wishes to maintain membership in the organization.

Importance of Attitude:

1. Career success
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Performance is a parameter to measure employees ‘success in the workplace. Performance

leads to success either through promotion or increased compensation. A positive attitude of an
employee will help him to think of ways to accomplish their task in a well-defined manner
2. Productivity
An employee with a positive attitude tends to take more interest and responsibility and will
provide better work, which in turn will improve productivity.
3. Leadership
Managing a diverse workforce is a crucial task for achieving the objective of an organization.
Positive attitude demonstrated by leaders or employee will result in proper communication
between the subordinate which will lead to efficient work.
4. Teamwork
A positive attitude of employees helps to appreciate each other‘s competencies and work as a
team for achieving common objectives.
5. Decision making
An employee with a positive attitude and mindset will help employees to make better
decisions, in an objective manner. It will enable employees to choose wisely and logically and
avoid them to take an unambiguous decision.
6. Motivation
Motivation is an important factor for efficient work. An employee with a positive attitude will
always be mentally prepared to face any obstacle in a job. The moment they are successful in
overcoming obstacles, they are motivated to move forward.
7. Interpersonal relations
Customers prefer to make relation with someone who is positive in nature. A positive attitude
helps in establishing valuable customer loyalty.

Positive Attitude:
Having a positive attitude helps in motivating employees to overcome obstacles that they
may face during the course of their job. It also determines the way they see the world around
them. The moment they are successful in overcoming obstacles, they are motivated to move
forward.
A good relationship can be established only when employees demonstrate a positive
attitude towards their work and colleagues. Through positive energy, work becomes a pleasure
and employees find it easier to achieve their goals. A positive attitude has significant benefits
for an individual in many aspects. Let‘s look at some of them below:
1. Career success: Employees ‘success in the workplace is measured through their
performance. Employees with a positive attitude will always think of ways to accomplishing
their task in a well-defined manner instead of complaining or finding excuses for non-
performance.
2. Productivity: With a positive attitude, employees tend to take more interest in what they do
and deliver. Consequently, they produce better quality work with minimum errors. This
improves their overall output as well as productivity.
3. Leadership
Working in an organization is all about managing a diverse workforce. Some employees earn
respect easily and people often follow and listen to them. This is possible through the positive
attitude demonstrated by leaders.
4. Team work: Good relationships among employees help them to build effective teams where
all the members are united and work for a common cause. A positive attitude helps employees
to appreciate each other‘s competencies and work as a team for achieving common objectives
instead of being overly perturbed by inadequacies of team members.
5. Decision making: Having a positive attitude helps employees to take better decisions, in an
objective manner. It triggers a healthy thought process, enabling employees to choose wisely
and logically.
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6. Motivation: Having a positive attitude helps in motivating employees to overcome obstacles

that they may face during the course of their job. It also determines the way they see the world
around them.
7. Interpersonal relations: Customers prefer to deal with someone who is positive in nature.
A positive attitude enables employees to share a better rapport with customers, earning
valuable customer loyalty.
8. Stress management: Stress has a detrimental effect on the health of employees. So how can
employees cope with it? Stress can be reduced through positive thinking; and with reduced
stress, employees will enjoy better health and take fewer sick leaves.

Attitude Formation:
Attitude Formation The question often arises, ‘how are the attitudes and subsequent behaviors
formed?’ While attitudes are basically learned over the years, some inherited characteristics do
affect such attitudes.
Some of the learned characteristics responsible for attitude formation are:
 Experiences
 Perceptual biases
 Observation of other person attitude
 Association
 Personality
 Experiences: Our personal experiences with people and situations develop our attitude
towards such persons and situations. Through job experience, people develop attitudes
towards working conditions, salaries, supervision, and group dynamics and so on.
 Perceptual biases: Perception is the result of a complex interaction of various senses such
as feelings, seeing, hearing and so on and plays an important part in our attitude and
behavioral formation. For example, if a manager perceives a subordinate’s ability as limited,
he will give him limited responsibility. Similarly, we lose many good friends due to our
changed perception about them.
 Observation of other person attitude: When we like someone, we try to emulate that
person’s attitude. For example, when we are impressed by someone keeping calm under
stressful circumstances and we appreciate such calmness, we might try to do the same.
 Association: Our association with the group we belong to strongly influences our attitude.
Our close association with a group would encourage us to be consistent with the attitude of
the group. Personality: Personality is a set of traits and characteristics, habit patterns and
conditioned responses to certain stimuli that formulate the impression that a person makes
upon others and this impression is a function of a person’s attitude.

Motivation:
Meaning of Motivation:

Motivation is the inner urge of a person that ignites and sustains behavior to satisfy need of
himself as well as of the society. Motivation has been derived from the Latin word “Motive”
which implies the inner state of mind that activates, provokes and directs our behavior
towards the goal.

Definition:

1. “Motivation means a process of stimulating people to action to accomplish desired goal”

– William G. Scout
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2. “Motivation refers to the way, in which urges, drives, desires, aspirations, strivings or
needs, direct, control and explain the behaviour of human beings” – Mc Farland

3. “Motivation is the complex forces starting and keeping a person at work in an

organisation. Motivation is something which moves the person to action and continues
him in the course of action already initiated” – Robert Dubin

Types of Motivation:

In order to extract more out of his subordinates a manager will be required to motivate
them for performing better. This can be done either by offering them reward for more work or
by instilling fear among them in the form of punishment.

1. Positive Motivation: Workers are tempted to put in their best for achieving the desired
objectives. These temptations rewards or incentives can be in the shape of extra pay,
promotion, recognition etc. Positive motivation will result in willing cooperation of workers for
the attainment of organizational goal.

 List everything that you will gain: from your particular goal. Having a clear idea of all the
positives can be very inspiring!
 Maximize your strengths: Instead of thinking about your weaknesses, consider how you
can maximize your strengths.
 Track your progress: Dividing a larger goal into smaller milestones will help with
progress. You should track these small milestones down regularly so that you may know
how much you have achieved for a particular goal.
 Give yourself a reward: reward yourself! For instance, give yourself permission to watch a
movie guilt-free if you achieve a small milestone.
 Surround yourself with encouragers: Have friends who will encourage you and want
what’s best for you.

2. Negative Motivation: Negative motivation creates fear or deterrent amongst workers. Fear
forces workers to behave in the way the owner wants them to behave. Workers are coerced to
behave in a certain manner, failing which they are threatened with layoffs, demotions, pay cuts
etc. Workers work not willingly but out of fear.

3. Extrinsic Motivation: Extrinsic motivation occurs when we are motivated to perform a

behaviour or engage in an activity to earn a reward or evade punishment. The motivation
comes from outside.
Examples:
 Studying because you want to get a good grade.
 Cleaning your room to avoid being scolded by your parents.
 Contesting in a contest to win a scholarship.
 Taking part in a sport to win awards.

4. Intrinsic motivation: It involves engaging in behaviour because it is rewarding;

essentially, performing an activity for its own sake rather than the desire for some external
reward. It comes from inside the individual and is not done for external rewards.
Intrinsically motivated people get a great deal of satisfaction and enjoyment from what they
do.
Examples:
 Participating in a sport because you find the activity enjoyable.
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 Solving a word puzzle because you find the challenge fun and exciting.
 Playing a game because you find it exciting.
5. Basic Motivation: Motivation leans on motives. We often categorize motives into basic
motives and learned motives. Basic (also known as primary) motives are unlearned and
common to both animals and humans. We’re talking about hunger, thirst, sex, avoidance of
pain, and perhaps aggression and fear.
6. Learned Motivation:
The learned or secondary motives include achievement, power, recognition, and love.

Importance of Motivation:

1. Improved Morale: Motivation acts as morale booster for employees. Motivated workers are
tempted to put in their best for the realization of organizational goals. High Morale will result
in more interest in work and higher productivity. It will enable the organization to produce
more at lower costs. It will have overall positive impact on the interests of the various parties
linked with the business.
2. Lower labor turnover: Motivated employees will never feel like leaving the organization
and as such the firm will be able to utilize the services of trained, committed and loyal workers
for longer period of time. Lower labour turnover will result in saving of time, effort and money
of the organization.
3. Improved goodwill: Motivated employees can help the organization in improving its good
will or image. A reputed organization is in a position to attract best possible talent from the
market.
4. Cordial Industrial Relations: A sound motivational system will promote job satisfaction
amongst workers. Workers will start identifying their interests with the interests of
organization due to positive motivation. The feeling of distrust, conflict or clash of interest will
be removed amongst motivated workers.
5. Quality Orientation: A motivated employee is generally more quality oriented. Everyone
from bottom to top or top to bottom takes extra care while performing the assigned work. It
leads to overall improvement in the working and people start recognizing the organization as a
quality conscious organization.
6. Acceptability of Change: An organization is required to remain in touch with the changing
scenario and at the same time take effective steps for making adjustments according to
changes. Its survival and future depends upon its ability to cope up with the changes.

Process of Motivation:

The process of stimulating and inspiring people at work to contribute to the best of
their capability for the achievement of organizational objectives is known as Motivation.
Motivation is the inner psychological force that activates and compels a person to behave in a
particular manner. It is a process of inductive individual desire towards a goal. Human beings
drive satisfaction when the goal is achieved. Both financial and non-financial factors motivate
employees in the organization. The process of motivation is based on human needs. The steps
of the process of motivation are as follows:

1. Unsatisfied Needs: Need is the starting point of motivation. The process always begins
when a person feels that there is some unsatisfied need in him.
2. Tension: When an unsatisfied need is recognized, a tension is created in the mind of the
person.
3. Drive: This tension stimulates the drive and compels the person to take action to fulfil his
needs.
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4. Search Behavior: In this, the drives create a drive to search for different ways or
alternatives to relieve the tension.
5. Satisfied need: After searching the various options available, the person chooses a
particular option. The person evaluates whether his need is satisfied or not as per the chosen
option.
6. Reduction of Tension: Tension is reduced and the person feels motivated when he is
successful in satisfying his needs.

Change:
Definition: “Managing process, structural, technical, staff and cultural change within an
organization is referred to as Change management”.

Different aspects of change to be considered:

i. Scheduling: What are the suitable stages for introducing change?
ii. Budgeting: How do we host e-Business?
iii. Resources needed: What type of resources do we need, what are their responsibilities and
where do we obtain them?
iv. Organizational structures: Do we need to revise organizational structures?
v. Managing the human impact of change: What is the best way to introduce large scale
Business changes to employees?
vi. Technologies to support e-Business change: The roles of knowledge management,
groupware and intranets are explored.

 The above figure show key aspects or levers of change that needs to be assessed to
maximize the benefits of e-business. The main change levers are:
 Market and business model.
 Business process Organizational structure, culture and staff responsibilities.
 Technology infrastructure changes. These are all the major changes that are required in
order for an organization to be agile enough to respond to marketplace changes and deliver
and deliver competitive customer service.

To help achieve these different aspects of change, a series of success factors see to be
required. These include:
 Management buy-in and ownership
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 Effective project management

 Action to attract and keep the right staff to access the change.
 Employee ownership of change.

Different types of change in Business:

i. Incremental change: This type of change requires relatively small adjustments required by
changes in the environment.
ii. Discontinuous or transformational change: Involves a major change in the business
environment which changes the basis for competition.
iii. Anticipatory change: This type of change occurs when an organization makes proactive
changes in order to improve its efficiency or to create an advantage within an operational
environment.
iv. Reactive Change: The reactive change is a direct response to change in the external
environment.
v. Organizational Change: It includes both discontinuous and incremental changes to an
organization. The four different forms of organizational change are:
 Tuning
 Adaptation
 Re-orientation Re-creation

Learning:
Meaning and Nature: Learning is a key process in human behavior. All living is learning. If we
compare the simple, crude ways in which a child feels and behaves, with the complex modes of
adult behavior, his skills, habits, thought, sentiments and the like- we will know what
difference learning has made to the individual.
Therefore, learning is a change in behavior, influenced by previous behavior. As stated
above the skills, knowledge, habits, attitudes, interests and other personality characteristics
are all the result of learning.
Definition: Learning is defined as “any relatively permanent change in behavior that occurs
as a result of practice and experience”.
This definition has three important elements.
a. Learning is a change in behavior—better or worse.
b. It is a change that takes place through practice or experience, but changes due to growth or
maturation are not learning.
c. This change in behavior must be relatively permanent, and it must last a fairly long time.

Types of Learning:

1. Motor learning: Most of our activities in our day-to-days life refer to motor activities. The
individual has to learn them in order to maintain his regular life, for example walking, running,
skating, driving, climbing, etc. All these activities involve the muscular coordination.
2. Verbal learning: This type of learning involves the language we speak, the communication
devices we use. Signs, pictures, symbols, words, figures, sounds, etc, are the tools used in such
activities. We use words for communication.
3. Concept learning: It is the form of learning which requires higher order mental processes
like thinking, reasoning, intelligence, etc. we learn different concepts from childhood. For
example, when we see a dog and attach the term ‘dog’, we learn that the word dog refers to a
particular animal. Concept learning involves two processes, viz. abstraction and generalization.
This learning is very useful in recognizing, identifying things.
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4. Discrimination learning: Learning to differentiate between stimuli and showing an

appropriate response to these stimuli is called discrimination learning. Example, sound horns
of different vehicles like bus, car, ambulance, etc.
5. Learning of principles: Individuals learn certain principles related to science,
mathematics, grammar, etc. in order to manage their work effectively. These principles always
show the relationship between two or more concepts. Example: formulae, laws, associations,
correlations, etc.
6. Problem solving: This is a higher order learning process. This learning requires the use of
cognitive abilitiessuch as thinking, reasoning, observation, imagination, generalization, etc.
This is very useful to overcome difficult problems encountered by the people.
7. Attitude learning: Attitude is a predisposition which determines and directs our behavior.
We develop different attitudes from our childhood about the people, objects and everything we
know. Our behavior may be positive or negative depending upon our attitudes. Example:
attitudes of nurse towards her profession, patients, etc.

Learning Organization:
The organization which adopts an open learning approach for the betterment of its employees
as well as the whole organization is known as learning organization. These organization not
only believe in creating and acquiring knowledge but also transfer it to all the levels of the
organization.
Elements of Learning Organizations:

There are several components that play an important role in making the learning organizations
successful. Some of them are mentioned below:

1) Team-Based Structure:
The most important element of a learning organisation is its team based structure. This means
that the functioning and development of the entire organisation. Depends upon the group
efforts made by all the members of the organisation. Different teams have number of
skilful employees who not only work together for accomplishing particular organisational goal,
but are well-prepared to face upcoming challenges effectively.
2) Employee Empowerment:
Learning organisations focus on employee empowerment under which they provide equal
opportunities and freedom to all the employees to show their creativity. Unlike the traditional
management system, these organisations do not set boundaries for their employees. In fact,
they provide their employees with necessary resources, relevant data and authority to make
decisions on their own.
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3) Open Information:
Learning organisations are well aware of the fact that more the information is provided to the
employees, more beneficial it proves for the organisation. Though these enterprises are full of
relevant data, but until they are identified by the employees, they are useless. Thus, it is
essential that each and every member of the organisation should be aware of what is
happening within the organisation, the budget of the company, profits received, expenses
incurred, etc.

Reinforcement Motivation:
Reinforcement Theory of motivation aims at achieving the desired level of motivation among
the employees by means of reinforcement, punishment and extinction. Reinforcement
approach, which can be both positive and negative, is used to reinforce the desired behavior.
Punishment acts as a deterrent to undesirable behaviors of the employees. Extinction refers to
diminishing the probability of undesirable behavior.
 The Reinforcement Theory was proposed by B.F. Skinner and his associates. It is based on
the concept of “Law of Effect”, i.e., the behavior of individual towards positive consequences
tends to repeat, but the behavior of individual towards negative consequences tends not to
repeat.
 Skinner said, “Behavior which is reinforced tends to be repeated; behavior which is not
reinforced tends to die out or be extinguished”.
Following are the methods for controlling the behavior of the employees:
1. Positive Reinforcement: Positive reinforcement explains that, when an employee gives a
positive and a required behavior, the response towards them should be positive. This
stimulates the occurrence of a behavior. Reward to an employee who performs well
reinforces his/her desire to perform better because of positive results of doing so.
2. Negative Reinforcement: Negative reinforcement takes place when certain deterrent or
obstruction is removed and the employees responds to a desired behavior after such
removal. For instance, an employee who commutes from a long distances wraps up a few
projects faster than desired; but, when he is told by the manager to take the projects home
for a couple of days and complete them, it stimulates him/her to work as expected. By
removing the negative stimuli, the desired behavior is reinforced.
3. Punishment: Punishment refers to imposing negative consequences or removing positive
consequences with a view to preventing employees from repeating undesirable and
uncalled for behaviors. It can, therefore, be both positive and negative.
4. Extinction: Extinction refers to extinguishing a learned behavior by withholding a positive
reinforcement or reward that has encouraged the behavior.

 Theories of Motivation:

1. Maslow’s Theory of Hierarchical Needs

Abraham Maslow postulated that a person will be motivated when all his needs are
fulfilled. People do not work for security or money, but they work to contribute and to use their
skills. He demonstrated this by creating a pyramid to show how people are motivated and
mentioned that one cannot ascend to the next level unless lower-level needs are fulfilled. The
lowest level needs in the pyramid are basic needs and unless these lower-level needs are
satisfied people do not look at working toward satisfying the upper-level needs.
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Below is the hierarchy of needs:

 Physiological needs: are basic needs for survival such as air, sleep, food, water,
clothing, sex, and shelter.
 Safety needs: Protection from threats, deprivation, and other dangers (e.g., health,
secure employment, and property)
 Social (belongingness and love) needs: The need for association, affiliation,
friendship, and so on.
 Self-esteem needs: The need for respect and recognition.
 Self-actualization needs: The opportunity for personal development, learning, and
fun/creative/challenging work. Self-actualization is the highest-level need to which a
human being can aspire.

2. Hertzberg’s two-factor Theory

Hertzberg classified the needs into two broad categories; namely hygiene factors and
motivating factors:

 poor hygiene factors may destroy motivation but improving them under most
circumstances will not improve team motivation
 hygiene factors only are not sufficient to motivate people, but motivator factors are also
required

Influenced by Hygiene Improving motivator Influenced by motivator

Factors (Dis-satisfiers) factors increases job factors (Satisfiers)
satisfaction

 Working  Improving the  Achievements

condition hygiene factors  Recognition
 Co-worker decreases job  Responsibility
relations dissatisfaction  Work itself
 Policies & rules  Personal growth
 Supervisor
quality
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3. McGregor’s Theory X and Theory Y

Theory X and Theory Y were first explained by McGregor in his book, "The Human Side of
Enterprise," and they refer to two styles of management – authoritarian (Theory X) and
participative (Theory Y).
Theory X: Managers who accept this theory believe that if you feel that your team members
dislike their work, have little motivation, need to be watched every minute, and are incapable
of being accountable for their work, avoid responsibility and avoid work whenever possible,
then you are likely to use an authoritarian style of management. According to McGregor, this
approach is very "hands-on" and usually involves micromanaging people's work to ensure that
it gets done properly.
Theory Y: Managers who accept this theory believe that if people are willing to work without
supervision, take pride in their work, see it as a challenge, and want to achieve more, they can
direct their own efforts, take ownership of their work and do it effectively by themselves.
These managers use a decentralized, participative management style.