Saiesh Digitally signed by

Saiesh Prabhu
Prabhu Verlekar
Date: 2022.05.14
Verlekar 10:33:56 +05'30'

ORGANIZATION BEHAVIOR
1 Saiesh N. Prabhu Verlekar
Department of Information Technology
SRIEIT, Shiroda - Goa
 Organizational Behavior (OB) can be defined as the
understanding, prediction and management of human
behavior both individually or in a group that occur within
an organization.
 The importance of OB :

- It helps in explaining the interpersonal relationships

employees share with each other as well as with their higher
and lower subordinates.
- predicts of individual behavior.
- It balances the cordial relationship by maintaining effective
communication.
- It helps managers to encourage their sub-ordinates.
- It helps in making the organization more effective and 2
changes easier.
 There are four major factors that affect OB.
- People
- Structure
- Technology
- enviornment
 People

- An organization consists of people with different traits,

personality, skills, qualities, interests, background, beliefs,
values and intelligence.
- In order to maintain a healthy environment, all the
employees should be treated equally and be judged according
to their work and other aspects that affects the firm.
Example − A company offers campus placement to trainees
from different states During and after training, all trainees 3
are examined only on the basis of their performance in the
tasks assigned.
 Organizational Structure
- Structure is the layout design of an organization.
- It is the construction and arrangement of relationships,
strategies according to the organizational goal.
Example − Organizational structure defines the relation of a
manager with employees and co-workers.

 Technology
- Technology can be defined as the implementation of
scientific knowledge for practical usage.
- It also provides the resources required by the people that
affect their work and task performance in the right direction.
Example − Introduction of SAP, big data and other software
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in the market determines individual and organizational
performance.
 Environment
- All companies function within a given internal and external
environment.
- Internal environment can be defined as the conditions,
factors, and elements within an enterprise that influences the
activities, choices made by the firm, and especially the behavior
of the employees.
- While external environment can be defined as outside factors
that affect the company's ability to operate. Some of them can
be manipulated by the company’s marketing, while others
require the company to make adjustments.
 Examples of internal environment include employee morale,
culture changes, financial changes or issues, and examples
of external environment include political factors, changes to 5
the economy and the company itself.
 The concept of OB is based on two key elements namely :
- Nature of people
- Nature of the organization

 Nature of People
- nature of people is the basic qualities of a person, or the
character that personifies an individual they can be similar or
unique. some major factors affecting the nature of people are :
 Individual Difference : It is the managerial approach
towards each employee individually, that is one-on-one
approach.
Example : Manager should not be biased towards any
particular employee rather should treat them equally and try
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not to judge anyone on any other factor apart from their work.
 Perception : It is a unique ability to observe, listen and
conclude something.
- The way we interpret things and have our point of view is our
perception.
Example : Aman thinks late night parties spoil youth while
Anamika thinks late night parties are a way of making new
friends. Here we see both Aman and Anamika have different
perception about the same thing.

 A whole person : As we all know that a person’s skill or

brain cannot be employed we have to employee a whole
person.
- Skill comes from background and knowledge.
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 Motivated behavior : It is the behavior implanted or
caused by some motivation from some person, group or
even a situation. In an organization, we can see two
different types of motivated employees :
 Positive motivation : Encouraging others to change
their behavior or say complete a task by luring them
with promotions or any other profits. Example : “If you
complete this, you will gain this.”
 Negative motivation : Forcing or warning others to
change their behavior else there can be serious
consequences. Example : “If you don’t complete this, you
will be deprived from the office.”
 Value of person : Employees want to be valued and
appreciated for their skills and abilities followed by 8
opportunities which help them develop themselves.
 Nature of Organization
- It is the opportunities it provides in the global market.
- It defines the character of the company by acting as a
mirror reflection of the company.
 Social system − Every organization socializes with other
firms, their customers, or simply the outer world, and all of
its employees, their own social roles and status. Social
system are of two types namely −
 Formal − Groups formed by people working together in
a firm or people that belong to the same club is
considered as formal social system.
- Example − A success party after getting a project.
 Informal − A group of friends, people socializing with 9
others freely, enjoying, partying or chilling.
- Example − Birthday party.
 Mutual interest : Every organization needs people and
people need organizations to survive and prosper.
- Basically it’s a mutual understanding between the
organization and the employees that helps both reach their
respective objectives.
- Example − We deposit our money in the bank, in return
the bank gives us loan, interest, etc.

 Ethics − They are the moral principles of an individual,

group, and organization.
- In order to attract and keep valuable employees, ethical
treatment is necessary and some moral standards need to be
set. 10
- In fact, companies are now establishing code of ethics
training reward for notable ethical behavior.
 The scope of OB integrates 3 concepts respectively :
1) Individual Behavior : It is the study of individual’s
personality, learning, attitudes, motivation, and job
satisfaction.
- Example : The personal interview round is conducted to
interact with candidates to check their skills, apart from those
mentioned in the resume.
2) Inter-individual Behavior : It is the study conducted through
communication between the employees among themselves as
well as their subordinates, understanding people’s leadership
qualities, group dynamics, group conflicts, power and politics.
- Example : A meeting to decide list of new board members.
3) Group Behavior : Group behavior studies the formation of
organization, structure of organization and effectiveness of
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organization. The group efforts made towards the achievement
of organization’s goal is group behavior.
OBJECTIVE OF OB
- Job Satisfaction.
- Finding the Right People.
- Organizational Culture.
- Leadership and Conflict Resolution.
- Understanding Employees Better.
- Understand how to Develop Good Leaders.
- Develop a Good Team.
- Higher Productivity.

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UNDERSTANDING THE IMPORTANCE OF
ORGANIZATIONAL BEHAVIOR IN ORGANIZATIONS .

- The study of organizational behavior gives insight on how

employees behave and perform in the workplace.
- It helps organizations establish a strong and trusting
relationship with their employees.
- It also helps to understand the nature and activities of
people in an organization.
- It has great need and significance to motivate employees
and to maintain interrelations in the organization.
- Self reflection is like looking into a mirror and describing
what you see. It is a way of assessing yourself, your ways of
working and how you study.
- Self-reflection is a process by which you grow your
understanding of who you are, what your values are, and why 13
you think and act the way you do.
JOHARI WINDOW
 It’s a simple and useful tool for understanding and
training:
- self-awareness
- personal development
- improving communications
- interpersonal relationships
- group dynamics
- team development; and
- inter group relationships

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15
 - The method of conveying and accepting feedback is
interpreted in this model.
- A Johari is represented as a common window with four
panes.
- Two of these panes represent self and the other two
represent the part unknown to self but to others.
- The information transfers from one pane to the other as
the result of mutual trust which can be achieved through
socializing and the feedback got from other members of the
group.

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1. Open/self-area or arena :
- Here the information about the person his attitudes,
behaviour, emotions, feelings, skills and views will be known
by the person as well as by others.
- This is mainly the area where all the communications
occur and the larger the arena becomes the more effectual
and dynamic the relationship will be.
- ‘Feedback solicitation’ is a process which occurs by
understanding and listening to the feedback from another
person.
- Through this way the open area can be increased
horizontally decreasing the blind spot.
- The size of the arena can also be increased downwards and 17
thus by reducing the hidden and unknown areas through
revealing one’s feelings to other person.
2. Blind self or blind spot :
- Information about yourselves that others know in a group
but you will be unaware of it.
- Others may interpret yourselves differently than you
expect.
- The blind spot is reduced for an efficient communication
through seeking feedback from others.

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3. Hidden area or façade :
- Information that is known to you but will be kept unknown
from others.
- This includes feelings, past experiences, fears, secrets etc.
- we keep some of our feelings and information as private as it
affects the relationships and thus the hidden area must be
reduced by moving the information to the open areas.

4. Unknown area :
- The Information which are unaware to yourselves as well as
others.
- This includes the information, feelings, capabilities, talents etc.
- The person will be unaware till he discovers his hidden
qualities and capabilities or through observation of others.
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- Open communication is also an effective way to decrease the
unknown area and thus to communicate effectively.
 From a practical point of view in implementing the Johari
window you need to look at two steps.
 Step one:

- The place to start in the Johari window is in the open area.

- Make some notes about yourself.
- Complete the Self Awareness Diagnostic. What are you
comfortable with and willing to share with others? Try and be
honest and clear about what you know about yourself already.
 Step two:

- Involve other people and ask for feedback about yourself.

- Be prepared to seriously consider it. That doesn’t mean that you
have to do everything that’s suggested, but you should at least
listen and think about it. 20
- Then give the person who provided the feedback some
acknowledgement or thanks for making the effort.
The Johari window as a tool does have its drawbacks:
- Some things are perhaps better not communicated with
others.
- People may pass on the information they received further
than you desire or use it in a negative way.
- Some people or cultures have a very open and accepting
approach to feedback and some do not. People can take
personal feedback offensively so it’s important when
facilitating to exercise caution and start gradually.
- Time pressure can distort decision -making processes and
individual judgment and make them less objective and more
influenced by intuition.
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 - Individuals in organizations make decisions. That is,
they make choices from among two or more alternatives.
- This is done at various levels of top, middle and low
management and also at non-managerial levels.
- Individual decision making, therefore, is an important part
of organizational behavior.

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PERCEPTION
- Perception is the way we understand or interpret the things
that are happening around us.
- For instance, we find it easier to communicate with our
friends and family because we trust them and they trust us.

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THE IMPORTANCE OF
PERCEPTION
- add value and meaning to our immediate surroundings.
- understand our environment.
- make the right decisions for ourselves.

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THE CHARACTERISTICS OF
PERCEPTION

- It is both subjective and objective.

- It is shifting, not permanent.
- It is selective.
- It is a result of past experiences.
- It is driven by motivations and interests.

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THE FACTORS INFLUENCING
PERCEPTION

 INDIVIDUAL DIFFERENCES
- Every person is unique and brings different attitudes to a
team.
- You may work well when collaborating with others while
your coworker prefers to work in isolation.
- Each of these differences affects your perception of your
team and organization.
- You’ll behave differently when you’re working with your
colleague as opposed to someone else.
- In the workplace, it’s necessary to respect these differences
and work with others to create harmony.

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 MOTIVATIONS
- Your motivations will impact your perception of your work.
- Our motivations affect the way we approach a situation.
- When it comes to teamwork, each member’s motivations
will be different.
- But to achieve collective goals, management has to bring
everyone on the same ground and communicate their
expectations.

 ORGANIZATIONAL BEHAVIOR
- An organization’s values, mission and beliefs are
important factors influencing perception.
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 PAST EXPERIENCES
- Our past experiences shape us into who we are today.
- We can’t separate ourselves from them.
- Past experiences are also significant factors influencing
perception.
- They shape our personal biases and opinions as well as our
expectations from others and ourselves.

 EXTERNAL FACTORS
- Perception isn’t only affected by internal or personal
factors.
- External factors affecting perception can include what
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people think of us, others’ expectations and cultural norms
such as rules followed by society.
 Perceptual Process
- The perceptual process allows us to experience the world
around us.
- how we perceive the people and objects around us affects
our communication.
- Actually perception process is a sequence of steps that
begins with the environment and leads to our perception of a
stimulus and action in response to the stimulus.
 3 stages of perception process are;

- Selection.
- Organization.
- Interpretation.
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 Selection
- Selecting is the first part of the perception process, in which
we focus our attention on certain incoming sensory
information. In selection, we choose stimuli that attract our
attention.
- We focus on the ones that stand out to our senses (sight,
sound, smell, taste, and touch).
- We take information through all five of our senses, but our
perceptual field includes so many stimuli that it is impossible
for our brains to process and make sense of it all.

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 Organization
- Organizing is the second part of the perception process, in
which we sort and categorize information that we perceive
based on learned cognitive patterns.

 Interpretation
- 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 organized and turn it into something
that we can categorize. 31
 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 as 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 32

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 means the situation 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. 33
- 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. When we draw a general
impression about an individual on the basis of a single
characteristic, such as intelligence, sociability, or appearance,
a halo effect is operating.
- Eg: If a worker has few absences, his supervisor might give
him a high rating in all other areas of work.
 Stereotyping

- When we judge someone on the basis of our perception of

the group to which he or she belongs, we are using the
shortcut called stereotyping.
- Eg: Boss might assume that a worker from a Middle East 34
country is lazy and cannot meet performance objectives, even
if the worker tried his best.
 Similarity
- people tend to seek out and rate more positively those who
are similar to themselves.
- 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 on the basis of
a negative quality or feature perceived. This results in an
overall lower rating than an acceptable rate.
- Eg: he is not formally dressed up in the office, that’s why he
may be casual at work too. 35
 Contrast
- The tendency to rate people relative to other people rather
than to the individual performance he or she is doing.
- Rather will evaluate an employee by comparing that
employee’s performance with other employees.

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COGNITIVE BIAS
- A cognitive bias is a systematic error in thinking that
occurs when people are processing and interpreting
information in the world around them and affects the
decisions and judgments that they make.
- The human brain is powerful but subject to limitations.
- Cognitive biases are often a result of your brain's attempt to
simplify information processing.
- Biases often work as rules of thumb that help you make
sense of the world and reach decisions with relative speed.

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 - Some of these biases are related to memory.
- The way you remember an event may be biased for a
number of reasons and that, in turn, can lead to biased
thinking and decision-making.
- Other cognitive biases might be related to problems with
attention.
- Since attention is a limited resource, people have to
be selective about what they pay attention to in the world
around them.

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FACTORS AFFECTING DECISION MAKING
PROCESS
 Individual Factors
- Individual cognitive biases will influence decision making.
- Decision making is shaped by individual personality and
behavioral characteristics.

 Time Pressure
- Time pressure can distort decision -making processes and
individual judgment and make them less objective and more
influenced by intuition.
- Heuristics, or mental shortcuts, can deliver workable
decisions under time pressure and in the absence of logical
decision-making processes.
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 Group Conflicts
- Group Conflict as a Barrier to Decision Making
- Group dynamics, which involves the influence of social
behavior, is the primary determining factor in the success of
group outcomes
- Interpersonal and group dynamics can make it difficult for
groups to make decisions effectively.
- The leader ‘s behavior, group norms, and how the decision-
making process is structured can help prevent groupthink.

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