ORGANIZATIONAL BEHAVIOR

Module III
What is OB
• Organizational behavior (OB) is the study of human behavior in
organizational settings, the interface between human behavior and
the organization itself.
• Organizational Behavior is a field of study that investigates the
impact that individuals, groups, and structure have on behavior
within organizations for the purpose of applying such knowledge
towards improving an organization's effectiveness.
• It is a systematic study of the behavior and attitudes of both individuals
and groups within the organizations
• Concerns itself with the scientific study or the behavioral process which
occurs in work settings”
• Focuses on understanding and explaining individual and group behaviors in
organizations
• It is concerned with what people do in an organization and how that
behavior affects performance
• The understanding, prediction and management of human behavior in the
organizations
• More micro than macro
 DEFINATION OF OB
• Organizations are defined as social arrangements, constructed by people,
who can also change them.
----Buchanan and Huczynski (1997)
• Organizations are a system of cooperative activities - and their
coordination requires something intangible and personal that is largely a
matter of personal relationships.
---- Barnard (1938)
• OB is concerned with “the study of the structure, functioning and
performance of organizations, and the behavior of groups and individuals
within them”.
---- Pugh (1971
 Importance of OB
• OB provides a road map to our lives in organizations.
• OB uses scientific research to understand and make organization life, as it
helps to predict what people will do under various conditions
• It helps to influence organizational events – to understand and predict
events
• It helps individual understand herself/ himself in better fashion.
• It helps manager to manage human resources effectively.Eg. Motivation
• It helps organizations for maintaining cordial industrial relations.
WHY WE STUDY ORGANIZATIONAL BEHAVIOUR

1. Practical application
2. Personal growth
3. Increased knowledge
Practical application
• There are important practical benefits to understanding
the principles of organizational behaviour:

• Development of personal styles of leadership can be guided by

knowledge of the results of studies of OB that have attempted
to relate leadership styles to situational requirements

• The choice of problem solving strategy or the selection of

appropriate employee appraisal format can be guided by an
understanding of the results of studies in the associated topic
areas
Practical application
In the area of performance enhancement, benefits can be gained by
applying knowledge gathered in the field of OB

Because the environment in which the organisation operates is

increasing in complexity, one must understand how to design
effective organizational structures and how to relate to individuals
from diverse and often international background

Being able to deal effectively with others in organizational settings

requires understanding of OB
Practical application
Attracting and developing talented individuals are 2 issues
critically important to the survival and prosperity of an
organisation

Emphasis of human element instead of on technical

financial and other tangible resources often separate
competing organisations when it comes to
organizational performance. This occurs because all
serious competitors in a given industry are likely to have
attained nearly the same level of technical sophistication
2.PERSONAL GROWTH

• The second reason for studying OB is the personal

fulfillment we gain form understanding our fellow
human

• Understanding others may also lead to greater self-

knowledge and self insight

• Such personal growth is an aspect of education that is

often cited as the greatest benefit of studying the
liberal arts and sciences
Personal growth
• Advancement in the business world
• It is also important for advancement in business world – it can make a
difference when it comes to advancing beyond an entry level position.
• Entry level hiring are based largely on technical competency, such as
certification in a specialized area e.g. CPA. Bachelor’s degree, MBA etc.
• Promotions however are often based on more that mere technical
competency.
• They are based on demonstrated abilities to understand and work
effectively with superiors, peer and subordinated.
• In short, an understanding of organizational behaviour may be invaluable to
you once you have that first job and seek to distinguish yourself
3.INCREASED KNOWLEDGE

To gather knowledge about people in a work setting

At minimum, the filed seeks to gather knowledge for its own sake just
like some sciences like Physics and chemistry; the practical use
of certain findings may not be practical for years.
Same could apply to Organizational Behaviour. Some early theories
were not of immediate use but are today useful
Additionally, the study of OB can help one think in a critical fashion
about matters that relate to experience of working. Such critical
thinking ability can be useful in analyzing both employees and
personal problems
 PERCEPTION
“ WE DON’T SEE THINGS AS THEY ARE,
WE SEE THINGS AS WE ARE.”
Meaning of perception
• Perception refers to the way we try to understand the world
around us.
• “ The study of perception is concerned with identifying the
process through which we interpret and organize sensory
information to produce our conscious experience of objects and
object relationship.”
Meaning of perception
• “Perception refers to the interpretation of what we take in
through our senses.
• “ perception is the process by which people select, organize and
interpret information to form a meaningful picture
• “ Perception is the process of receiving information about and
making sense of the world around us. It involves deciding which
information to notice, how to categorize this information and how
to interpret it within the framework of existing knowledge
Definition of perception
• The process by which an individual selects, organizes, and
interprets stimuli into a meaningful and coherent picture of the
world.
• It is a process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment.
- Stephen.P.Robbins
• YOUR INTERPRETATION OF REALITY AFTER INFORMATION/
STIMULI IS……
(A) FILTERED OUT
(B) SELECTED
(C) ORGANISED
(D) DEFINED
Nature of perception
Perception is the process by which people select, organize,
interpret, retrieve, and respond to information.
Perceptual information is gathered from:
• Sight.
• Hearing.
• Touch.
• Taste.
• Smell.
Process of Perception
 Perceptual Process

Perception is a process of receiving, selecting, organizing, interpreting,

checking and reacting to stimuli.
This is like an input-through put-output process in which the stimuli can
be considered as 'inputs' transformation of 'input' through selection,
organization and interpretation as 'through puts' and the ultimate
behavior/action as 'output'.
 Receiving Stimuli

The first process in the perception is the presence of stimuli. The

stimuli are received from the various sources. Through the five
organs. It is a physiological aspect of perception process. Stimuli may
be external to us (such as sound waves) and inside us (such as
energy generation by muscles).
Selection of Stimuli
  After receiving the stimuli or data, some are selected. Others are
screened out. Two types of factors affect selection of stimuli for
processing : external and internal factors.
• External factors relate to stimuli such as intensity of stimuli, its
size, movement, repetition, etc.
• Internal factors, relate to the perceiver such as his/her age, learning,
interest, etc. Normally, he will select the objects which interest him
and will avoid that for which he is indifferent. This is also called
'selective perception'.
Organization of Stimuli
Organizing the bits of information into a meaningful whole is called "
organization". There are three ways by which the selected data, i.e.,
inputs are organized. These are :
(i) Grouping,
(ii) Closure and
(iii) Simplification.
Grouping :
 In grouping, the perceiver groups the various stimuli on the basis of their
similarity or proximity. For example, all the workers coming from the same
place may be perceived as similar on the basis of proximity.
Closure :
 When faced with incomplete information, people fill up the gaps
themselves to make the information meaningful. This may be done on the
basis of past experience, past data.
For example, in many advertisement, alphabets are written by putting electric
bulbs indicating the shape of the concerned alphabets but broken lines. In such
cases, people tend to fill up the gap among different bulbs to get meaning out
of these.
Simplification : 
People identify main stimulus features and assesses how they are
organized. He interprets a stimulus situation, the perceiver simples the
information.
Stages of the perceptual process

• Information attention and selection.

• Organization of information.

• Information interpretation.

• Information retrieval
Information attention and selection

Selective screening.
• Lets in only a tiny proportion of all the information that bombards a
person.
Two types of selective screening.
• Controlled processing.
• Screening without perceiver’s conscious awareness.
Organization of information
Schemas
• A schema is a mental concept which informs a person
about what to expect from a variety of experiences and
situations.
• Schemas are developed based on information provided
by life experiences and are then stored in memory.
Information interpretation

• Uncovering the reasons behind the ways stimuli are

grouped.
• People may interpret the same information differently or
make different attributions about information.
 Information Retrieval & Response to Perceptual
Process
Information Retrieval
• Attention and selection, organization and interpretation are part of memory.
• Information stored in memory must be retrieved in order to be used.

Response to perceptual process

• Thoughts.
• Feelings.
• Actions.
ATTRIBUTION
 Attribution
• The ways in which people come to understand the causes of their own
and others’ behaviors
• Most often an unconscious process (i.e., people are not normally
aware of making attributions)
• People make sense of their surroundings on the basis of what they
consider is the cause and what is the effect of a phenomenon.
• It suggests that individuals observe their own behavior or experience,
try to figure out what caused it, and then (whether or not their
conclusion is in fact correct) shape their future behavior accordingly.
• for example, If a consumer has had bad experience with a locally made
product (and good experience with an imported one) he or she may
conclude that the bad product is bad because it is locally made.
 Attribution Theory
When individuals observe behavior, they attempt to determine whether it is internally or externally

caused.

observation Interpretation Attribution of cause

H
External
Distictinctiveness
L Internal

H
External
Individual behavior Consensus
L Internal

H
Internal
Consistency 33
L
External

H –high L- Low
 Consistency
Distictiveness Consensus Does this person
Does this person Do other person behave
behave in Behave in the in this same
this manner Same manner? manner at other
in other situation times ?

No Yes
YES Low High Internal
Low Consensus Consistency Attribution
Distinctiveness
NO No
Yes Low
External
High High
Attributio
n
Distinctiveness Consistency
Consensus
• Consensus:

the extent to which other people behave in the same way in a similar situation. E.g.
Rani smokes a cigarette when she goes out for a meal with her friend. If her friend
smokes, her behavior is high in consensus. If only Rani smokes it is low.
• Distinctiveness:

the extent to which the person behaves in the same way in similar situations. If Rani
only smokes when she is out with friends, her behavior is high in distinctiveness. If she
smokes at any time or place, distinctiveness is low.
• Consistency:

the extent to which the person behaves like this every time the situation occurs. If
Rani only smokes when she is out with friends, consistency is high. If she only smoke on
one special occasion, consistency is low.
Let’s look at an example to help understand his particular attribution theory. Our subject
is called Ram. His behavior is laughter. Ram is laughing at a comedian.
• Consensus:

Everybody in the audience is laughing. Consensus is high. If only Ram is laughing

consensus is low.
• Distinctiveness:

Ram only laughs at this comedian. Distinctiveness is high. If Ram laughs at everything
distinctiveness is low.
• Consistency:

Ram always laughs at this comedian. Consistency is high. Ram rarely laughs at this
comedian consistency is low.
Types Of Attribution
CATEGORY 1
INTERNAL
EXTERNAL
CATEGORY 2
STABLE
UNSTABLE
CATEGORY 3
CONTROLLABLE
UNCONTROLLABLE
Internal vs. External
• Attribution theory proposes that the attributions people make about
events and behavior can be classed as either internal or external.
a. INTERNAL - dispositional
b. EXTERNAL - situational
• In an internal, or dispositional, attribution, people infer that an event or a
person’s behavior is due to personal factors such as traits, abilities, or
feelings.
• In an external, or situational, attribution, people infer that a person’s
behavior is due to situational factors.
• Example: Mrs X’s car breaks down on the freeway. If she believes the
breakdown happened because of her ignorance about cars, she is making
an internal attribution. If she believes that the breakdown happened
because her car is old, she is making an external attribution
 Stable vs. Unstable
• When people make a Stable attribution, they infer that an event or
behavior is due to stable, unchanging factors.
• When making an Unstable attribution, they infer that an event or behavior
is due to unstable, temporary factors.
• Example: Ram gets back paper on his term end Exam.
a) If he attributes the grade to the fact that he always has bad luck, he is
making a stable attribution.
b) If he attributes the grade to the fact that he didn’t have much time to
study that week, he is making an unstable attribution.
Controllable vs. Uncontrollable

• If something is controllable, we can alter it if we wish to do so.

• If something is uncontrollable, it is outside our sphere of influence
Shortcuts in judging others
• Selective Perception :

People selectively interpret what they see on the basis of their interests,

background, experience and attitudes.

• Halo Effect :

Drawing a general impressions about an individual on the basis of a single

charecteristics.

41
• Contrast Effect :

Evaluation of a person’s characteristics that are effected by comparisons with

other people recently encountered who rank higher or lower on the same

characteristics.

• Projection :

Attributing one's own characteristics to other people.

• Stereotyping :

Judging someone on the basis of one’s perception of the group to which that

persons belongs. 42
PERSONALITY
 What is Personality?
• Personality - All our behaviour is somewhat shaped by our personalities. – a dynamic
concept describing the growth and development of a person’s whole psychological
system. It is the sum total of ways in which an individual reacts and interacts with
others. Some aggregate whole that is greater than the sum of its parts. “The dynamic
organisation within an individual of those psychological systems that determine his
unique adjustments to his environment.”
Gordon Allport
• Personality -A relatively stable set of characteristics that influences an individual’s
behavior
• The sum total of ways in which an individual reacts and interacts with others.
Personality is a pattern of stable states and characteristics of a person that
influences his or her behavior toward goal achievement
 • Personality, according toFred Luthans , will
meanhow people affect others and how they
understand and view themselves, as well as
their pattern of inner and outer measurable
traits and the person-situation interaction .
• How people affect others depends on external
appearance (height, weight, facial features,
color, and other physical aspects) and traits.

4
5
 Personality Determinants
An adult’s personality is generally considered to be made up of
both hereditary and environmental factors, moderated by
situational conditions.

•Heredity
Personality Traits •Environment
Enduring •Situation
characteristics that
describe an individual’s
behavior.
4
6
 Heredity
• Factors that were deter –mined at conception physical stature, facial
attractiveness, gender, temperament, muscle composition and reflexes,
energy level, and biological rhythms – biological, physiological and inherent
psychological make up of parents. – the heredity approach says that the
ultimate explanation of an individual’s personality is the molecular structure
of the genes, located in the chromosomes.
• Research among children support the hereditary theory – shyness, fear, and
distress, height, hair colour.
• Research among twins – separated at birth and brought up separately –
one set of twins separated 39 yrs ago and raised 45 miles apart were
found to drive the same model and color car, chain-smoked the same
brand of cigarette, owned dogs with the same name, and regularly
vacationed within 3 blocks of each other in a beach community 1500 miles
away. Genetics accounts for 50% of the personality differences and more
than 30% of the variation in occupational and leisure interests.
• A report by the American Psychological Association concludes,

“Studies over the past 20 yrs on twins and adopted children have firmly
established that there is a genetic component to just about every human
trait and behaviour, including personality, general intelligence and
behaviour disorders.”
• Individual job satisfaction is found to be stable over time,
according to research –Depends on the person and less on
external environmental factors.
• If personality were completely dictated by birth, no experience
could change it. But personality factors are not completely
dictated by heredity.
• The debate should not be nature or nurture, but nature and
nurture that contributes to one’s personality.
Role of the brain
The genes also affect brain functions that in turn
affect how people interact with their environment
and thus their personalities.

Some people, call the brain, “the last frontier”

because we still know very little about it, may hold
more answers for personality
Environment
• Culture in which one is raised, early conditioning, the norms among
our family, friends, social groups, and other influences we
experience.
• Both heredity and environment are important. Heredity sets the
parameters or outer limits, but an individual’s full potential will be
determined by how well he or she adjusts to the demands and
requirements of the environment.
Situation

Influences the effects of environment on

personality, which changes in different situations.
Certain situations are more significant than others.
Personality Theories

• Traits Theory

• Psychodynamic Theory

• Humanistic theory

• Integrative approach
Traits Theory
• States that to understand individuals, we must break down
behaviour patterns into a series of observable behaviour. Gordon
Allport, saw traits as broad , general guides that lend consistency
to behaviour.
• Raymond Cattell identified 16 traits that formed the basis for
differences in individual behaviour. He described traits in bipolar
adjective combinations, such as self-assured/apprehensive,
reserved/outgoing, and submissive/dominant.
Primary traits (Robert Cattell)
1. Reserved vs outgoing
2. Less intelligent vs more intelligent
3. Affected by feelings vs emotionally stable
4. Submissive vs dominant
5. Serious vs happy-go-lucky
6. Expedient vs Conscientious
7. Timid vs venturesome
8. Tough-minded vs sensitive
Primary traits (Robert Cattell)
1. Trusting vs suspicious
2. Practical vs imaginative
3. Forthright vs shrewd
4. Self-assured vs apprehensive
5. Conservative vs experimenting
6. Group dependent vs self-sufficient
7. Uncontrolled vs controlled
8. Relaxed vs tense
 Psychodynamic Theory
• Based on the work of Sigmund Freud, this theory emphasizes the unconscious
determinants of behaviour. Freud saw personality as the interaction between 3
elements of personality, the id, ego, and superego. The id is the most primitive
element, the source of drives and impulses that operates in an uncensored
manner. The superego , similar to our conscience, contains values and the ‘shoulds
and should-nots’ of the personality – ongoing conflict between the id and the
superego. The ego manages the conflict between the Id and the superego.
• In this role, the ego compromises, and the result is the individual’s use of defense
mechanisms such as denial of reality.
• The contribution of this theory is its focus on unconscious influences on
behaviour.
 Humanistic theory
• Carl Rogers believed that all people have a basic drive toward
self-actualisation.
• The theory focuses on individual growth and improvement –
distinctly people centered and also emphasises the individual’s
view of the world- contributes an understanding of the self
to personality theory and contends that the self-concept is
the most important part of an individual’s personality.
 Integrative Approach
• Personality is described as a composite of the individual’s psychological processes.
Personality dispositions include emotions , cognitions, attitudes, expectancies,
and fantasies. Dispositions mean the tendencies of individuals to respond to
situations in consistent ways. Influenced by both genetics and experiences,
dispositions can be modified. The integrative approach focuses on both
permanent (Dispositions) and situational variables as combined predictors of
behaviour.
• • More importantly, it draws on the self-concept including nature (heredity and
physiological/biological dimensions) and nurture (environmental, developmental
dimensions), dispositional traits, the social cognitive interactions between the
person and the environment, and the sociailisation process.
MOTIVATION
 MOTIVATION
• Motivation is the characteristic that helps you achieve your goal. It is the drive
that pushes you to work hard .It is the energy that gives you the strength to get
up and keep going - even when things are not going your way.
• Motivation is the process that account for an individual’s intensity, direction and
persistence of effort toward attaining a goal.
• Motivation is the result of the interaction between an individual and a situation.
• Motivation process is universal, all people are motivated to pursue goals they
value.
• The level of motivation varies both between individuals and within individuals at
different times.
Types of motivation theories

• Content theories
• What motivate us?
• Human needs and how people with different needs may respond to different work
situations.
• Process theories
• Why and how motivation occurs?
• How people give meaning to rewards and make decisions on various work-
related behaviors.
• Reinforcement theory
• How outcomes influence behavior?
• How people’s behavior is influenced by environmental consequences.
THEORIES OF MOTIVATION

Maslow's hierarchy of needs

Content Herzberg's motivator-

Theory hygiene theory

Alderfer's ERG theory

McClelland's three-needs
theory
THEORIES OF MOTIVATION

Adams' equity theory

Process Vroom's expectancy theory

Theory
Goal-setting theory

Reinforcement theory
MASLOW’S THEORY

We each have a hierarchy of needs that ranges from "

lower" to "higher." As lower needs are fulfilled there is a
tendency for other, higher
needs to emerge.”

Maslow’s theory maintains that a person does not feel a

higher need until the needs of the current level have
been satisfied.
MASLOW'S HIERARCHY PYRAMID

Self Actualization
Esteem needs

Social needs

Safety needs
Physiological
needs
Physiological Motivation: Provide ample breaks for lunch , pay
salaries that allow workers to buy life's essentials.

Safety Needs: Provide a working environment which is safe,

relative job security, and freedom from threats.

Social Needs: Generate a feeling of acceptance, belonging by

reinforcing team dynamics.
Esteem Motivators: Recognize achievements, assign
important projects, and
provide status to make employees feel valued and
appreciated.

Self-Actualization: Offer challenging and meaningful

work assignments which enable innovation, creativity,
and progress according to long-term goals.
LIMITATIONS AND CRITICISM

Maslow’s hierarchy makes sense but little evidence

supports its strict hierarchy. Research has challenged
the order imposed by Maslow’s pyramid. As an
example, in some cultures, social needs are regarded
higher than any others.

Little evidence suggests that people satisfy exclusively

one motivating need at a time.
HERZBERG'S MOTIVATION-HYGIENE THEORY
• Frederick Herzberg performed studies to determine which factors in an
employee's work environment caused satisfaction or dissatisfaction. He
published his findings in the 1959 book The Motivation to Work.
 Motivating Hygiene
factors factors
• Achievement • Company policy
• Recognition • Supervision
• Work itself • Relationship w/Boss
• Responsibility • Work conditions
• Advancement • Salary
• Growth •Relationship w/Peers
According to Herzberg: The job should have sufficient challenge
to utilize the full ability of the employee.

Employees who demonstrate increasing levels of ability should

be given increasing levels of responsibility.

If a job cannot be designed to use an employee's full abilities,

then the firm should consider automating the task or replacing
the employee with one who has a lower level of skill. If a person
cannot be fully utilized, then there will be a motivation problem
LIMITATION AND CRITICISM

Critics consider Herzberg's two factor theory to be

simplistic - what motivates me may be a dissatisfier for
someone else

Its for individuals, not as a homogeneous group with one

set of wants and needs

Some factors may be within your control, some may not

Alderfer's ERG theory
• Developed by Clayton Alderfer.
• Three need levels:
• Existence needs — desires for physiological and
material well-being.
• Relatedness needs — desires for satisfying
interpersonal relationships.
• Growth needs — desires for continued
psychological growth and development.
Any/all needs can influence behavior at one time.
McClelland's three-needs theory

• Developed by David McClelland.

• People acquire needs through their life
experiences.
• Needs that are acquired:
• Need for Achievement
• Need for Power
• Need for Affiliation
Acquired needs theory
• Need for Achievement
• Desire to do something better or more
efficiently, to solve problems, or to master
complex tasks.
• People high in prefer work that:
• Involves individual responsibility for results.
• Involves achievable but challenging goals.
• Provides feedback on performance.
• Need for Power
• Desire to control other persons, to influence their
behavior, or to be responsible for other people.
• Personal power versus social power.
• People high in prefer work that:
• Involves control over other persons.
• Has an impact on people and events.
• Brings public recognition and attention.
• Need for Affiliation
• Desire to establish and maintain friendly and warm
relations with other persons.
• People high in prefer work that:
• Involves interpersonal relationships.
• Provides for companionship
• Brings social approval.
Comparison of Maslow’s, Alderfer’s, Herzberg’s, and McClelland’s
motivation theories.
Process theories of motivation …
• How people make choices to work hard or not.
• Choices are based on:
• Individual preferences.
• Available rewards.
• Possible work outcomes.
• Types of process theories:
• Equity theory.
• Expectancy theory.
• Goal-setting theory.
 Adams' equity theory
• Developed by J. Stacy Adams.
• A theory that says that behavior is a function of its consequences.
• Motivation is influenced significantly by others’ rewards as well as by
one’s own rewards.
• Most research has focused on pay, but employees seem to look for
equity in the distribution of other rewards.
• When people believe that they have been treated unfairly in comparison
to others, they try to eliminate the discomfort and restore a perceived
sense of equity to the situation.
• Perceived inequity.
• Perceived equity.
Equity theory and the role of social
comparison.
Equity theory
• People respond to perceived negative inequity by changing …
• Work inputs.
• Rewards received.
• Comparison points.
• Situation.
Managerial implications of equity theory—
• Underpaid people experience anger.
• Overpaid people experience guilt.
• Perceptions of rewards determine motivational outcomes.
• Negative consequences of equity comparisons should be minimized, if
not eliminated.
• Do not underestimate the impact of pay as a source of equity
controversies in the workplace.
• Gender equity.
• Comparable worth.
Vroom's expectancy theory
• Developed by Victor Vroom.
• Key expectancy theory variables:
• Expectancy — I can achieve this target .Belief that
working hard will result in desired level of performance.
• Instrumentality —I will get a reward . Belief that successful
performance will be followed by rewards.
• Valence— Winning this reward is important for me value
a person assigns to rewards and other work related
outcomes.
 Expectancy theory
• Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related
to one another in a multiplicative fashion:
M=ExIxV
• If either E, I, or V is low, motivation will be low.
Managerial implications of expectancy theory
 Goal Setting Theory
 A theory that says that specific and difficult goals with feedback,
lead to higher performance.
 According to Edwin Locke, intentions to work toward a goal are a major
source of work motivation.
 Goals tell an employee what needs to be done and how much effort will
need to be extended.
 “More difficult the goal,higher the level ofperformance” because:
 Challenging goals help to get our attention and tend to help us focus.
 Difficult goals energize us because we have to work harder to attain
them.
 When goals are difficult, people persist in trying to attain them.
 Difficult goals lead us to discover strategies that help us to
perform the job or task more efficiently.
 People do better when they get feedback on how well they are
progressing toward their goals because feedback helps to identify
discrepancies between what they have done and what they want to
do; that is , feedback acts to guide behavior.
 Factors that have been found to influence the goals-performance
relationship are:
 o Goal commitment-Goal setting theory presupposes that an individual
is committed to the goal. Individual believes that he/she can achieve
the goal or wants to achieve it.
• Task characteristics-Goals seem to have a more
substantial effect on performance rather than complex and
independent rather than interdependent.
• National culture-Goal setting theory is culture bound. It
assumes that employees will be reasonably independent,
that managers and employee will seek challenging goals
and that performance is considered important by both.
 Reinforcement theory
• A theory that says that behavior is a function of its
consequences.
• Ignores internal state of a person

• Reinforcement theory focuses on the impact of external

environmental consequences on behavior.
• Focuses only on what happens to a person as a result of an
action taken.
 Types of Reinforcement
TYPE OF REINFORCEMEN EMPLOYEE
EMPLOYEE BEHAVIOR
T BEHAVIOR
CONSEQUENCE (Future)

Improved Performance Positive Praise improvement Repeat quality work

Do not give any

Improved Performance Negative Repeat quality work
reprimand

Performance not Do not repeat poor

Extinction Withhold praise/raise
improved work

Performance not Discipline action, such as Do not repeat poor

Punishment
improved written warning work
Contemporary Leadership Issues

There is nothing demoralizing than a leader who cannot clearly articulate

why we are doing what we are doing
 Leadership Approaches
• leader is born not made”, behavior cues identify leader from non
leaders, “Leadership and situations” and like.
• All what is ignored is importance of a leader as communicator.
• Now we come to point leadership is influence a group of people.
• Framing– the way (using language to manage meaning) for
leaders to influence how others see and understand events
occurring.
• Moreover, it ability of the leader to inspire others to act
beyond their immediate self-interest.
Contemporary Leadership Roles
Mentoring: A senior employee who sponsors and
supports a less-experienced employee.
Two broad categories of mentoring functions:
1.Career Functions– visible assignment, develop skills,
protect from possible risks, and nominating for potential
advances and promotions.
2.Psychological Functions– Counseling anxieties, and
uncertainty to help bolster her self-confidence, sharing
personal experiences, providing friendship and acceptance,
acting as role model.
 Contemporary Leadership Roles
(continues)
Self-Leadership- A set of processes through
which individuals control their own behavior.
Online Leadership– when you are face-to-face many
things can be cleared but when you have to convey
everything in words.
 Two contemporary Theories of
Leadership

1. Charismatic Leadership
2. Transformational Leadership
Charismatic Leadership Theory
A leadership theory that states that followers make
attributions of heroic or extraordinary leadership abilities when
they observe certain behaviors.

Charismatics Influence Followers By:

• Articulating the vision
• Setting high performance expectations
• Conveying a new set of values
• Making personal sacrifices
Key Characteristic of Charismatic Leaders
Whether charismatic leaders are born with qualities or learn how to be charismatic
leader.
Answer to both questions is YES.
Four characteristics:
1. Vision and Articulation:
Has vision—expressed as an idealized goal---that proposes future is better than
status quo; and is able to clarify the importance of the vision in terms that are
understandable to others.
2. Personal Risk.
Willing to take on high personal risk, incur high costs, and engage in self-sacrifice
to achieve the vision.
3. Sensitivity to followers Needs:
Perceptive of others’ abilities and responsive to their needs and feelings.
3. Unconventional Behavior:
Engages in behaviors that are perceived as novel and counter to norms.
 3 Steps to become Charismatic Leader

1. Maintaining an optimistic view; using passion as

catalyst for generating enthusiasm; and communicating
with the whole body, not just with words.
2. Drawing other by creating bond that inspires
others to follow.
3. Bringing out the potential in followers by
tapping into their emotions.
 How Charismatic Leader Influence
followers?
• There are four steps to influence others.
1. Articulating an appealing Vision. The vision provides a sense of
continuity for followers by linking the present with a better
future for the organization.
2. Articulating mission statement- that imprint on followers an
overarching goal and purpose.
3. Setting the example for followers to imitate- leading
from the front.
4. Engages followers in emotion-inducing and often
unconventional behavior to demonstrate courage and
convictions about the vision.
 Effectiveness of Charismatic Leaders

The charismatic leaders are so popular and loved

that people exert extra effort to achieve the
organizational goals. But there are some specific
situations where they are more successful.
1. Ideological base.
2. Stress inducing condition.
3. Time of uncertainty.
 Dark Side of charismatic Leadership

1. Ignoring the organizational interests

2. Most of them try to make the company to
improve their own image.
3. Sometimes self and organizational interest boundaries
are blurred.
4. Unable to accept criticism.
5. Surrounded by yes-boss people who are rewarded on
their lip service.
Transformational Leadership

Leaders who inspire followers to transcend

their own self-interests and who are capable
of having a profound and extraordinary effect
on followers.
 Characteristics of Transformational
Leaders
1. Idealized Influence: Provides vision and sense of
mission, instills pride, gains respect and trust.
2. Inspirational Motivation: Communicates high
expectations, uses symbols to focus efforts, expresses
important purposes in simple ways.
3. Intellectual Stimulation: Promotes intelligence,
rationality, and careful problem solving.
4. Individualized Consideration: Gives personal attention,
treats each employee individually, coaches, advises.