ORGAIZATIONAL BEHAVIOUR

MODULE - I , II & III

Organisational Behaviour

“Organisational behaviour is directly concerned with the understanding, production and control
of human behaviour in organisations.”—Fred Luthans.

“Organisational behaviour is a field of study that investigates the impact that individuals, groups
and structure have on behaviour within the organisations for the purpose of applying such
knowledge toward improving an organization’s effectiveness.”—Stephens P. Robbins.

In short, organisational behaviour revolves around two fundamental components:

1. The nature of the man.

2. The nature of the organisation.

Organisational behaviour is the basis of human resource management and development. The
former is concept oriented whereas the latter is concerned with the technology of human
development. The variables influencing human development are scientifically studied under
organisational behaviour.

Human resource management, is activated, directed and channelized by the application of the
knowledge of organisational behaviour which has become a field of study, research and
application for the development of human resources and the organisation as a whole. Thus, we
can say that all these terms are interrelated but not synonymous with each other.

Organisational behaviour in the study of human behaviour in the organisations. Whenever an

individual joins an organisation he brings with him unique set of personal characteristics,
experiences from other organisations and a personal background. At the first stage organisational
behaviour must look at the unique perspective that each individual brings to the work setting.

The second stage of organisational behaviour is to study the dynamics of how the incoming
individuals interact with the broader organisation. No individual can work in isolation. He comes
into contact with other individuals and the organisation in a variety of ways. The individual who
joins a new organisation has to come into contact with the co-workers, managers, formal policies
and procedures of the organisation etc.

Over the time, he is affected by his work experience and the organisation as well as his personal
experiences and maturity. On the other hand, the organisation is also affected by the presence or
absence of the individual. Thus, it is essential that OB must study the ways in which the
individuals and organisation interact with each other.

The organisational behaviour must be studied from the perspective of the organisation itself
because an organisation exists before a particular individual joins in and continues to exist after
he or she has left the organisation. Thus, OB is the study of human behaviour in the organisation,
the individual-organisation interaction and the organisation itself. And these factors are
influenced by the external environment in which the individuals and the organisation exist.

Thus, we can say that we cannot study individual behaviour completely without learning
something about the organisation. On the other hand, we cannot study the organisations without
studying the behaviour of the individuals working in it. This is because the organisation
influences and is influenced by the people working in it. Moreover, both the individuals and the
organisation are influenced by the external environment. Thus, the field of organisational
behaviour is a complex field. It seeks to throw light on the entire canvas of human factor in the
organisations which will include the causes and effects of such behaviour.

Characteristics of Organisational Behavior:

1. Behavioural Approach to Management:

Organisational behaviour is that part of whole management which represents the behavioural
approach to management. Organisational behaviour has emerged as a distinct field of study
because of the importance of human behaviour in organisations.

2. Cause and Effect Relationship:

Human behaviour is generally taken in terms of cause and effect relationship and not in
philosophical terms. It helps in predicting the behaviour of individuals. It provides
generalizations that managers can use to anticipate the effect of certain activities on human
behaviour.

3. Organisational Behaviour is a Branch of Social Sciences:

Organisational behaviour is heavily influenced by several other social sciences viz. psychology,
sociology and anthropology. It draws a rich array of research from these disciplines.

4. Three Levels of Analysis:

Organisational behaviour encompasses the study of three levels of analysis namely individual
behaviour, inter-individual behaviour and the behaviour of organisations themselves. The field of
organisational behaviour embraces all these levels as being complementary to each other.

5. A Science as well as an Art:

Organisational behaviour is a science as well as an art. The systematic knowledge about human
behaviour is a science and the application of behavioural knowledge and skills is an art.
Organisational behaviour is not an exact science because it cannot exactly predict the behaviour
of people in organisations. At best a manager can generalize to a limited extent and in many
cases, he has to act on the basis of partial information.

6. A Body of Theory, Research and Application:

Organisational behaviour consists of a body of theory, research and application which helps in
understanding the human behaviour in organisation. All these techniques help the managers to
solve human problems in organisations.

7. Beneficial to both Organisation and Individuals:

Organisational behaviour creates an atmosphere whereby both organisation and individuals are
benefitted by each other. A reasonable climate is created so that employees may get much
needed satisfaction and the organisation may attain its objectives.

8. Rational Thinking:

Organisational behaviour provides a rational thinking about people and their behaviour. The
major objective of organisational behaviour is to explain and predict human behaviour in
organisations, so that result yielding situations can be created.

Contributing Disciplines To The OB Field

Organizational behavior is an applied behavioral science that is built upon contributions from a
number of behavioral disciplines. The predominant areas are psychology, sociology, social
psychology, anthropology, and political science

Psychology

Psychology is the science that seeks to measure, explain, and sometimes change the behavior of
humans and other animals. it may be;the mental and behavior characteristic of an individual or
group; If one want to improve the behaviour of an individual on group we have to look into the
psychological needs of an individual and group.So the knowledge of psychology can realy help
in improving and modifying the behaviour of individual and group.If the psychological needs are
fulfilled ,it gives satisfaction to people and also give peace of mind, which can improve the
ability of an organization.
Sociology

Sociologists study the social system in which individuals fill their roles; that is, sociology studies
people in relation to their fellow human beings. also according to the Waliam Marrian dictionary,
sociology is "the science of society social instituton and social relationship." This study really
provides helping hand in the improvement and modificaton of OB. Society provides the base for
collective living and relationship while social institutes provide the base for better form and
shape for society among its different organizations. Meanwhile, social behaviour moulds the
behaviour and values of the society. So, knowledge of social norms and values not to forget the
customs really help in shaping the society.

Social psychology

An area within psychology that blends concepts from psychology and sociology and that focuses
on the influence of people on one another. it deal with the fulfilment of social needs in a
phycological sense of interpretations.it cause different socio psycho conditions and affair for the
modification of OB.it deal with the inner self of an individual itself . Esteem must be preserved
and hounourd. social phycology is the main and principal organ of bringing together different
organ in a better harmony and this improve the OB and modified it towards further improvement
and achevement.

Anthropology

The study of societies to learn about human beings and their activities. we also define
anthrapology as "science of human beings especialy of their environment and social relations and
there culture" environment play a pivotal role in the iimprovment and modification of OB.
environment like teacher and preacher determines the direction of OB. in our society colourful
people are living ie from different religion,creeds,cast and culture. So for OB modificationand
improvement,one must have the very trate and attitude of anthropology.

A manager’s job is to use the tools of organizational behavior to increase effectiveness, an

organization’s ability to achieve its goal. Management is the process of planning, organizing,
leading, and controlling an organization’s human, financial, material, and other resources to
increase its effectiveness.

Political science

The study of the behavior of individuals and groups within a political environment. It also means
"the act or science of guiding or influencing governmental policy"; the study of politics is helpful
in the nourishment and development of the OB. Among different groups and individuals, if
loyalty is not found,then OB does not flourish and rather becomes the victim of deadlock.
Political science provides an insight for the improvement and modification of the OB. The OB
involves the application of political science at all levels. It may be at the highest level, like
country, and at the lowest level, like an institute or organization. It involves the study of
behaviour in a political environment.

Approaches to the Study of Organizational Behavior

(1) Human Resource Approach,

(2) Contingency Approach,

(3) Productivity Approach, and

(4) System Approach.

1. Human Resource Approach

This approach recognizes that human resources in an organisation are the central force. Their
development will contribute to the success of the organisation. Human resources approach
provides for the changes in the managerial role. It requires that the managers, instead of
controlling the employees, should provide active support to them by treating them as part of the
group.

The superiors and managers should practice a style where workers are given the opportunities
and encouragement to perform under loose supervision. By treating individuals as mature adults,
organisations can increase productivity and at the same time meet the needs of individuals for
independence and growth.

2. Contingency Approach:

The approach stresses that there is no single way to manage effectively under all circumstances.
The methods of behaviours which work effectively in one situation may fail in another. The
organisational structure and the processes of management are governed by the external
environment and several aspects of the internal environment. Effective management processes
will vary in different situations depending on the individuals and groups in the organisation, the
nature of the job and technology, the environment facing the organisation and its structure.

The manager’s task therefore, is to identify which method will, in a particular situation, under
particular circumstances and at a particular time, best contribute to the attainment of
organization’s goals. Thus, the manager will have to analyze each situation prior to action and
different managerial practices and styles are needed for effective management.

3. Productivity Approach:

Productivity means the numerical value of the ratio of output to input. Higher the value of this
ratio, greater is the efficiency and effectiveness of the management. The traditional concept of
productivity was concerned with economic inputs and output only. But nowadays human and
social inputs and outputs are equally important. Productivity, a significant part of organisational
behaviour decisions, is recognized and discussed extensively. These decisions relate to human,
social and economic issues. For example if better organisational behaviour can reduce worker’s
turnover or the number of absentees, a human output or benefit occurs.

4. System Approach

The systems approach is of the view that an organisation is a powerful system with several
subsystems which are highly and closely interconnected. Any action taken to solve the problems
in one subsystem will have its effect on the other subsystems as well; since all the parts of the
organisation are closely connected. Thus, this approach gives the managers a way of looking at
the organisation as a whole, whole group, and the whole social system. Systems approach has
become an integral part of modern organisational theory. Organisations are termed as complex
systems comprising of interrelated and interlocking systems.

According to this approach, an organisation receives several inputs from its environment such as
material, human and financial. These inputs are then processed so as to produce the final output
in terms of products or services.

The following figure shows the relationship clearly:

Developing Model of Organizational Behaviour

This model illustrates the goals, parameters and factors of organizational behaviour. The model
describes the abstraction of reality and simplifies the representation of real world phenomena. A
model of organizational behaviour explains the behaviour at individual, group and organizational
levels. The models are developed on the basis of dependent and independent variables.

Dependent variables (Output)

The dependent variables of organizational behaviour are explored to find the impact of
behavioural factors on them. The skills and efficiencies of individuals are developed. Innovation
and professionalisation take place. The organization develops subsequently. In brief, the
productivity, turnover and job satisfaction are increased as a result of improved organizational
behaviour.

(i) Productivity: The refined and improved behaviour of employees has a direct
reflection on productivity. The effectiveness, efficiency and economy of the
organization are observed at individual and group levels. An organization achieves
effectiveness when it achieves its goal. Efficiency relates to the qualitative
performance of the activities. Economy is attained when work is performed at a low
cost. The output per unit of production tells about productivity which is attained as a
result of realising efficiency, effectiveness and economy caused by improved
behaviour of individuals, groups and organization. Model framing requires
anticipation and stipulation of the impacts of certain behaviour on productivity,
effectiveness, efficiency and economy.
(ii) Turnover: The turnover will increase as a result of satisfied employees and modified
behaviour. Employees are properly recruited, trained and motivated for achieving the
organizational goals. They like position, power and influence. A congenial
atmosphere helps them to achieve the organizational goals and personal satisfaction.
Increased opportunities of promotion, innovation and satisfaction also have an
indirect impact on behaviour, which in turn helps increase the turnover of the
organization. The superior–subordinate relations are also helpful for enhancing the
achievement and performance level of an organization.
(iii) Job satisfaction: An improved situation and group behaviour will increase the
satisfaction of individuals. The expectations of the employees are met. The difference
between the amount of reward and its expectation is the level of satisfaction.
Organizational behaviour provides job satisfaction to employees. The quality of
performance depends on the satisfaction of employees. Individual satisfaction is the
legitimate result of organizational behaviour. It is observed that satisfied employees
prefer to work hard and attend work without being absent. However, dissatisfied
employees are prone to absenteeism, which may result in disruption in performance
and quality. Satisfied employees as a result of proper behaviour and congenial
 atmosphere avoid the negative approach. They like to work hard and get job
satisfaction.

Independent variables (Input)

The independent variables influencing the organizational model of behaviour are individuals,
groups and the structure of the organization.

(i) Individual variables: Individuals having their own personalities, preferences, values,
attitudes and leanings influence the work environment directly. The management cannot control
these variables. Rather they have to use these factors for effective performances. The degree of
influences of these factors are studied with perception, learning and personality. Although these
factors cannot be changed totally, they can be modified to meet the requirements of the
organization

(ii) Group variables: Group variables are important factors influencing organizational
behaviour. A group has more impact than the sum of individual contributions. Synergy (i.e.
contribution of people in groups is more than the sum total of the contributions of each
individual) is obtained through group variables. Group behaviour has more impact on an
organization. However, if group behaviour is not controlled, it may damage more than the
individual employees. The group behaviour is studied under several heads such as group
dynamics, pattern, group decision, leadership, power and politics, inter and intra-group, conflict
effects and resolutions. The group variables are studied and directed for effective performance,
goals, achievements and individual satisfaction.

(iii) Structural variables: The structures of an organization have their own functional relations.
Sophisticated structures have sophisticated behaviour. Straight-line communication and unity of
command have disciplined behaviour. Multiple command may create conflicts. Formal relations
have definite behaviour whereas informal organizations have more positive impacts on
organizational behaviour. Selection, training, motivation, level of work stress, conflict,
coordination and control are considered points of structural variables.

S-O-B-C Model in OB 

 S-O-B-C stands for Stimulus, Organism(a person), Behavior and Consequence.

 Stimulus: is any event that happens in the environment, it can be a sound (like someone
shouting) a scene(a car accident, a fight. etc...), events(like receiving a paycheck).

 Organism: is a person, nothing more can be said about this, so in OB you can consider
that to be an employee or an employer.

 Behavior: the organism behavior and response in regards to the stimulus( for example a
child(Organism) may hit(Behavior) his brother after seeing a violent movie(Stimulus).
  Consequence: is the the outcome that comes after the behavior, it either reinforces(thus
repeated) the behavior or punished(thus not repeated). In the child example previously
mentioned, his mother can reprimand(Consequence: punishment) him for doing what he
did.

Job Description & Job Specification

Job Description

A simple, organised and brief statement in written form, containing a list of all the essential
requirements of the job, along with a summary of duties and responsibilities to be performed by
the jobholder is known as Job Description. It is the immediate and the primary output of Job
Analysis. In short, it is a statement that captures all the relevant facts related to a specific job.

Job description shows a clear picture of the nature of each job with respect to the tasks and
occupational needs. It is an accurate and authorised record of job contents. It incorporates major
authorities, duties, scope of work, role and purpose. It is a comprehensive job summary that all
the necessary details are extensively curtailed in a concise way. It defines the primary and
secondary conditions required for the performance of the concerned job.

It is easy with the help of the job description to legitimise rewards and punishments if the
applicants do not satisfy the job requirements. Moreover, it is also easy to identify the training
needs of the job holder.

Job Specification

A statement that expresses the minimum qualification and qualities required, for the performance
of a particular job is known as Job Specification. It is also termed as Man Specification or Person
Specification or Employee Specification.

Job Specification is prepared on the basis of Job Description, which states the characteristics that
an employee should have, to hold the job. It converts the job description in terms of pertinent
human qualifications which are demanded by the job. It is developed in consultation with the
supervisor and the human resource manager.

The creation of job specification is not an easy task because sometimes it seems difficult to
classify that whether a particular requirement is compulsory or desirable. However, it helps to
ascertain that, on what basis a person is recruited and examined. Some common specifications
are as under:

Physical features: Height, weight, vision, etc.

Demographic features: Age, experience, gender, education, skills, abilities, etc.

Psychological features: Mental ability, alertness, sharpness, aptitude, reasoning, etc.

Personal features: Attitude, behavior, etiquette, manners etc.

Job Enlargement and Job Enrichment

Job enlargement and job enrichment are two of the most important ways to motivate employees.
The first one is horrizontal growth in responsibility and the latter one is vertical growth in
responsibility.

The major differences between job enlargement and job enrichment are mentioned as under:

1. A job design strategy in which the number of tasks performed by a single job is increased
is known as Job Enlargement. Job Enrichment is defined as a motivational tool, used by
the management in which the range of activities performed by a single job is increased to
make it better than before.

2. Job Enlargement involves quantitatively extending the scope of activities carried out by

the job whereas in Job Enrichment improvements are made in the existing job to increase
its quality.

3. Job Enlargement reduces boredom and monotony while performing a single task, on and
on. Conversely, Job Enrichment makes the job more challenging, exciting as well as
creative.

4. Job Enlargement does not require additional skills but job enrichment does.

5. In job enlargement, the expansion of tasks is made horizontally, i.e. at the same level. On
the other hand, job enrichment involves vertical expansion of activities like controlling
and doing the task.

6. Job enlargement requires more supervision as compared to job enrichment.

7. The consequence of introducing job enlargement is not always positive, but job
enrichment will produce positive outcomes.

8. Job Enlargement makes employees feel more responsible and valuable, while Job
Enrichment brings satisfaction and efficiency in employees.
Roles of Managers.

A Manager has three types of Roles

Interpersonal ( 1-3 )
Informational ( 4-6 )
Decisional ( 7 – 10 )

1. Figurehead Role Of Manager

Managers perform the duties of a ceremonial and symbolic in nature such as welcoming official
visitors, signing legal documents etc as head of the organization or strategic business unit or
department.

Duties of interpersonal roles include routine, involving little serious communication and less
important decisions. However, they are important for the smooth functioning of an organization
or department.

2. Leadership Role Of Manager

All managers have a leadership role. The manager, as in charge of the organization / department,
coordinates the work of others and leads his subordinates.

This role includes hiring, training, motivating and disciplining employees. Formal authority and
functional authority provides greater potential power to exercise and get the things done.

3. Liaison Role Of Manager

As the leader of the organization or unit, the manager has to perform the functions of motivation,
communication, encouraging team spirit and the like. Further, he has to coordinate the activities
of all his subordinates, which involves the activity of liaison.

This role also requires the manager to interact with other managers outside the organization to
secure favours and information. In this role, the manager represents his organization in all
matters of formality.

4. Monitor Role Of Manager

As a result of the network of contacts, the manager gets the information by scanning his
environment, subordinates, peers and superiors.

The manager seeks and receives information concerning internal and external events so as to
gain understanding of the organization and its environment. Typically this is done through
reading magazines and talking with others to learn the changes in the public’s tastes, what
competitors may be planning, and the like.
Managers, mostly collect information in verbal form often as gossip, hearsay, speculation and
through grapevine channels.

5. Disseminator Role Of Manager

Manager disseminates the information, he collects from different sources and through various
means. He passes some of the privileged information directly to his subordinates, peers and
superiors who otherwise have no access to it. This information is gathered by him from his
environments and from his own equals in the organization.

The manager will play an important role in disseminating the information to his subordinates,
when they don’t have contact with one another.

6. Spokesman Role Of Manager

Managers also perform a spokesperson role when they represent the organization to outsiders.
Manager is required to speak on behalf of the organization and transmit information on
organization’s plan, policies and actions.

The manager has to keep his superior informed of every development in his unit, who in turn
inform the insiders and outsiders. Directors and shareholders must be informed about the
financial performance, customers must be informed about the new product developments, quality
maintenance, government officials about implementation of law etc.

7. Entrepreneurial Role Of Manager

As an entrepreneur, the manager is a creator and innovator. He initiates and oversee new
products that will improve their organization’s performance.

He seeks to improve his department, adapt to the changing environmental factors. The manager
would like to have new ideas, initiates new projects and initiates the developmental projects.

8. Disturbance Handler Role Of Manager

As a disturbance handler, managers take corrective action to response to previously unforeseen

problems. Disturbance handler role presents the manager as the involuntarily responding to
pressures. Pressures of the situation are severe and highly demand the attention of the manager
and as such the manager cannot ignore the situation.

For example, worker strike, declining sales, bankruptcy of a major customer etc. The manager
should have enough time in handling disturbance carefully, skilfully and effectively.

9. Resource Allocator Role Of Manager

The most important resource that a manager allocates to his subordinates is his time. As a
resource allocator, managers are responsible for allocating human, physical and monetary
resources. Accordingly, setting up of a time schedule for the completion of an operation or
approval of expenditure on a particular project, etc., are the functions which the managers
perform in the role of a resource allocator.

The manager should have an open-door policy and allow the subordinates to express their
opinions and share their experiences. This process helps both the manager and his subordinates
in making effective decisions. In addition, the manager should empower his subordinates by
delegating his authority and power.

10. Negotiator Role Of Manager

In this tole, the manager represents the organization in bargaining and negotiations with outsiders
and insiders, in order to gain advantages for his own unit. He negotiates with the subordinates for
improved commitment and loyalty, with the peers for cooperation, coordination and integration,
with workers and their unions regarding conditions of employment, commitment, productivity,
with the government about providing facilities for business expansion etc.

These negotiations are integral part of the manager’s job for only he has authority to commit
organizational resources and has nerve centre of information.
 PERSONALITY

Personality has been derived from the Latin word “persona” which means “mask” used by the
actors to change their appearance. It is the combination of an individual thoughts, characteristics,
behaviors, attitude, idea and habits.

Myers-Briggs Personality Theory

Myers-Briggs theory is an adaptation of the theory of psychological types produced by Carl

Gustav Jung. It is based on 16 personality types, which Jung viewed as stereotypes (Jung 1921,
p. 405). They act as useful reference points to understand your unique personality (Jung 1957, p.
304). At the heart of Myers Briggs theory are four preferences. Do you prefer to deal with:

 People and things (Extraversion or "E"), or ideas and information (Introversion or "I").

 Facts and reality (Sensing or "S"), or possibilities and potential (Intuition or "N").

 Logic and truth (Thinking or "T"), or values and relationships (Feeling or "F").

 A lifestyle that is well-structured (Judgment or "J"), or one that goes with the flow
(Perception or "P").

In Myers Briggs theory, for each pair you prefer one style more than the other. Jung also allowed
a middle group where you like an equal balance of the two. You combine the letters associated
with your preferences to get your Myers Briggs personality type. For example, having
preferences for E, S, T and J gives a personality type of ESTJ. Although you have preferences,
you still use all eight styles - in the same way that most people are right-handed but they still use
both hands.

Extraversion and Introversion - The first pair of styles is concerned with the direction of your
energy. If you prefer to direct your energy to deal with people, things, situations, or "the outer
world", then your preference is for Extraversion. If you prefer to direct your energy to deal with
ideas, information, explanations or beliefs, or "the inner world", then your preference is for
Introversion.

Sensing and Intuition - The second pair concerns the type of information/things that you
process. If you prefer to deal with facts, what you know, to have clarity, or to describe what you
see, then your preference is for Sensing. If you prefer to deal with ideas, look into the unknown,
to generate new possibilities or to anticipate what isn't obvious, then your preference is for
Intuition. The letter N is used for intuition because I has already been allocated to Introversion.
Thinking and Feeling - The third pair reflects your style of decision-making. If you prefer to
decide on the basis of objective logic, using an analytic and detached approach, then your
preference is for Thinking. If you prefer to decide using values - i.e. on the basis of what or who
you believe is important - then your preference is for Feeling.

Judgment and Perception - The final pair describes the type of lifestyle you adopt. If you
prefer your life to be plannedand well-structured then your preference is for Judging. This is not
to be confused with 'Judgmental', which is quite different. If you prefer to go with the flow, to
maintain flexibility and respond to things as they arise, then your preference is for Perception.

When you put these four letters together, you get a personality type code. Having four pairs to
choose from means there are sixteen Myers Briggs personality types.

Myers-Briggs Types

ISTJ ISFJ INFJ INTJ

ISTP ISFP INFP INTP

ESTP ESFP ENFP ENTP

ESTJ ESFJ ENFJ ENTJ

Big Five Model

Five-Factor model follows the Traits approach to personality and experts agree that it is valid
and it effectively captures the salient aspects of personality that are stable. The five-factor 
structure is designed to take care of cultural differences in socialization and allows self, peer,
observer and stranger ratings to measure personality.

The Big Five factors of Personality are:

(a) Emotional Stability (Opposite  of Neuroticism)

Accepting the function of personality of helping us adjust with our environment, we would agree
that a well-adjusted person might be comfortable in dealing with issues and problems, and would
be able to make and maintain positive relationships. It is not valid to say that a well-adjusted
person does not have powerful feelings, especially negative ones.
Conversely, a person scoring high on neuroticism may show hostility, self-consciousness, low
confidence, pessimism, and impulsiveness. People with high neuroticism have also been
described as depressed, insecure, nervous and worried. A high level of neuroticism blocks
awareness  and management of one’s own emotional states. Research links high neuroticism with
the following organizational outcomes:

Stress Safety and Health

Combined  with Negative Affectivity, Neuroticism explains how well a person can handle
painful, unpleasant and stressful stimuli. People high in neuroticism make significantly more
work accidents, report greater dissatisfaction and have lower mental health.

Attitudes at Work
Neuroticism is significantly related to Life and Job Satisfaction. Persons high on neuroticism are
less likely to form positive attitudes towards their work because of their tendency to interpret
experiences under a negative light. Neuroticism can also cause lower self-esteem, lower self-
efficacy, an external locus of control, and lower job satisfaction. When organizational change is
introduced, high neuroticism induces increased stress and insecurity, and causes negative
attitudes and resistance towards change

Job Performance, Motivation and Quality or Work Relationships

Emotional stability is strongly correlated to higher job proficiency and performance motivation. 
High Neuroticism is not likely to facilitate effective job performance. Higher the neuroticism,
lower would be the goal-orientation, leading to low possibility that such a person will devote
himself to his work.

Bozionelos (2004) reviewed  that due to lack of confidence and optimism,  those who score high
on neuroticism may not develop career ambitions, and suitable  performance goals. Emotional
stability can significantly  predict turnover intentions. High levels of emotional stability
contribute to social cohesion in teams, and high neuroticism predicts anger and neglect in
relationships

(b) Extraversion (High to Low): Opposite of Introversion

Jung (1921) first introduced the concept of introversion-extraversion as a measure of personality.
As a factor, Extraversion can be found in most personality inventories and is measured by facets
such as sociability (gregariousness), energy (activity), and assertiveness (dominance).  Individual
scale  items measure each of these extraversion facets. Extraverted individuals are expressive and
talkative, generally positive, energetic and joyful, and they show a preference for and enjoyment
of others’ company.

Performance. Rewards and Well-being

Extraversion, characterized  by personalities with a need for stimulation and high externally-
oriented activity levels, is a very important dimension for effective job performance for
managers, since managers work with and through others most of their time. Though not
guaranteeing  better performance directly, extroverted behavior is perceived by others as
cooperative behavior, leading to favorable ratings.

Motivation and Well-being

Extraverts are often motivated for improved performance by external rewards and recognition  in
the form of status and rewards at work. Typically, an introvert would report having fewer friends
or contacts. While an extrovert can also possibly have few close friends, when compared  to
introverts, the extrovert would have more social contacts. When left with some spare,
unstructured time, an introvert might prefer to spend it reading or doing some other similar ‘solo’
activity, while an extrovert might seek the company of others.

By way of a very general observation, therefore, we might say that introverts may be Jess
attracted to social rewards like status and approval of others, compared to extroverts. We can
also infer that when faced with a situation that threatens their well-being, an extrovert might
more easily approach others and seek their help. So, this other-orientation may act as a buffer
against the impact of negative influence of, let’s say, a workplace conflict.

c) Openness to Experience  (High or Low)

Openness  to experience  is a disposition to be imaginative, artistic, non-conforming, curious,
original, broadminded and  autonomous. People high on openness can be expected to be
proactive, tolerating and willing  to explore the unfamiliar. High scores on openness to
experience  mean that the individual is original, has an active imagination, enjoys variety, is
attentive to inner feelings, and demonstrates intellectual curiosity. Those who score low on
openness to experience tend to act more conventionally.

Training and Learning

A high score on openness is found to be related to training proficiency, and a positive disposition
towards learning. So, in organizations interested in creating learning and adaptation-oriented
environments, the implementation of change might benefit from a workforce high on openness.
But if the task and environment are routinized, where compliance is critical, the imaginative,
curious and unconventional individuals may be more liable to break rules, experiment and
improvise and may show emergent leadership behavior in groups.

Attitude and Motivation

Individuals who score high on openness may be more involved and motivated in their work,
especially if the work requires them to self-set goals. One of the recent discoveries is that there is
a link between Openness and Organizational Citizenship Behavior, suggesting that creative and
imaginative employees are more willing to participate in extra-role activities of OCB.
(d) Agreeableness: (Compassion to Antagonism)
The basic features of agreeableness as a personality trait are altruism, friendliness and modesty,
while low agreeableness indicates antagonism and selfishness. These features represent the
tendency of agreeable people to be courteous, soft-hearted, flexible, nurturing, and cooperative.
At work, agreeable people avoid disagreement and are generally easy to get along with.
They are found to be compliant, tolerant, tactful, not defensive, trusting, tender, and modest.
Two major needs of people high on agreeableness are ‘the need for affiliation’ a stable
preference for establishing, maintaining, and restoring a positive affective relationship-and ‘the
need for intimacy’-a stable preference for warm, close, and communicative interactions with
others.

Cooperation
Agreeableness is useful in situations that require cooperation with others. Agreeable individuals
need to make themselves valuable to a group by bringing the group closer together, and other
group members value agreeable individuals more than those who are not agreeable

Involvement and Performance

Individuals low on agreeableness are likely to be more involved in their work, as it may provide
an escape from having to relate to others, and give an opportunity of advancement through their
work. On the other hand, those who score high on agreeableness might prioritize relationships
over work and career success.

(e) Conscientiousness
This factor represents the traits of achievement, organization, task-focus, and dependability. Its
definition includes aspects of competence, order, dutifulness, achievement striving, self-
discipline and thoroughness in decision-making style. Literature reviews suggest that
conscientiousness correlates well across performance criteria.

Conscientious individuals are more likely to be orderly and decisive, autonomous and
persevering in goal-setting behavior, show greater ability to cope with time management issues
and stress, and generally strive for continuous performance improvement.

Performance
Conscientiousness is most strongly linked to performance outcomes, not only as a Big Five
dimension, but also as its constituent individual trait. Perhaps that is why it can predict
performance motivation strongly and consistently in a wide range of settings such as studies,
sales outcomes and manufacturing teams.
In a study, the sales representatives who scored high in conscientiousness were more committed
than their less conscientious counterparts, brought greater sales volume and earned higher
supervisory ratings of job performance. Moreover, the supervisors of highly conscientious sales
persons are likely to see them as dedicated to their jobs.

Attitudes Towards Change

Employees with a high score on consciousness are dutiful and they strictly follow the principles
and obligations initiated by the management. So, conscientious employees can be expected to
have positive attitudes toward change. However, conscientiousness is also negatively correlated
with creativity so valuable in times of change.

MOTIVATION THEORIES

Motivation is the word derived from the word ’motive’ which means needs, desires, wants or
drives within the individuals. It is the process of stimulating people to actions to accomplish the
goals. In the work goal context the psychological factors stimulating the people’s behaviour can
be -
 desire for money
  success
 recognition
 job-satisfaction
 team work, etc
One of the most important functions of management is to create willingness amongst the
employees to perform in the best of their abilities. Therefore the role of a leader is to arouse
interest in performance of employees in their jobs.

1. Maslow – hierarchy of needs

This is the earliest and most widely known theory of motivation, developed by Abraham Maslow
(1943) in the 1940s and 1950s.
This theory condenses needs into five basic categories. Maslow ordered these needs in his
hierarchy, beginning with the basic psychological needs and continuing through safety,
belonging and love, esteem and self-actualization (Figure 2). In his theory, the lowest unsatisfied
need becomes the dominant, or the most powerful and significant need. The most dominant need
activates an individual to act to fulfil it. Satisfied needs do not motivate. Individual pursues to
seek a higher need when lower needs are fulfilled.

Maslow's hierarchy of needs is often shown in the shape of a pyramid: basic needs at the bottom
and the most complex need (need for self-actualization) at the top. Maslow himself has never
drawn a pyramid to describe these levels of our needs; but the pyramid has become the most
known way to represent his hierarchy.

1. Physiological needs (e.g. food, water, shelter, sleep)

It includes the most basic needs for humans to survive, such as air, water and food. Maslow
emphasized, our body and mind cannot function well if these requirements are not fulfilled.
These physiological needs are the most dominant of all needs. So if someone is missing
everything in his/her life, probably the major motivation would be to fulfil his/her physiological
needs rather than any others. A person who is lacking food, safety, love (also sex) and esteem,
would most probably hunger for food (and also for money, salary to buy food) than for anything
else.
If all the needs are unsatisfied, and the organism is then overruled by the physiological needs, all
other needs may turn into the background. All capacities are put into the attendance of satisfying
hunger. Any other things are forgotten or got secondary importance.

2. Safety and security (secure source of income, a place to live, health and well-being)
If the physiological needs are relatively well contented, new needs will appear, the so called
safety needs. Safety needs refer to a person’s desire for security or protection. Basically
everything looks less important than safety and protection (the physiological needs even
sometimes). The healthy and fortunate adults in our culture are largely satisfied in their safety
needs. The peaceful, sure, safety and unwavering society makes us feel in safety enough from
criminal assaults, murder, unbelievable natural catastrophes, and so on. In that case people no
longer have any safety needs as first-line motivators.
Meeting with safety needs demonstrated as a preference for insurance policies, saving accounts
or job security, etc., we think about the lack of economic safety. Children have a greater need to
feel safe. That is the reason why this level is more important for children.
Safety and security needs include: Personal security; Financial security; Health and well-being;
Safety mesh against accidents, illnesses and their adverse impacts.
To tell the truth, in real dangers and traumas – like war, murder, natural catastrophes, criminal
assault, etc. -, the needs for safety become an active, first-line and dominant mobilizer of human
beings.
3. Belongingness and love (integration into social groups, feel part of a community or a
group; affectionate relationships)

If both the physiological and the safety needs are fulfilled, the affection, love and belongingness
needs come into prominence. Maslow claimed people need to belong and accepted among their
social groups. Group size does not mean anything: social groups can be large or small. People
need to love and be loved – both sexually and non-sexually – by others. Depending on the power
and pressure of the peer group, this need for belonging may overbear the physiological and
security needs.
Love needs involve giving and receiving affections (love is not synonymous with sex – sex is a
physiological need). When they are unsatisfied, a person will immediately eliminate the lack of
friends, peers and partner. Many people suffer from social nervousness, loneliness, social
isolation and also clinical depression because of the lack of this love or belongingness factor.

4. Esteem (respect for a person as a useful, honourable human being)

In our society most people long for a stable and high valuation of themselves, for the esteem of
others and for self-respect or self-esteem.
Esteem means being valued, respected and appreciated by others. Humans need to feel to be
valued, such as being useful and necessary in the world. People with low self-esteem often need
respect from others. Maslow divided two types of esteem needs: a ‘lower’ version and a ‘higher’
version. The ‘lower’ version of esteem is the need for respect from others: for example attention,
prestige, status and loving their opinion. The ‘higher’ version is the need for self-respect: for
example, the person may need independence, and freedom or self-confidence.
The most stable and therefore the healthiest self-esteem is based on respect from others. External
fame or celebrity and unwarranted adulation won’t cause self-esteem, although you feel better
for a while.

5. Self-actualization (individual’s desire to grow and develop to his or her fullest potential)

‘What humans can be, they must be.’ (Maslow, 1954)

Self-actualization reflects an individual’s desire to grow and develop to his/her fullest potential.
People like opportunities, choosing his/her own versions, challenging positions or creative tasks.
Maslow described this level as the ‘need to accomplish everything that one can, to become the
most that one can be’. Maslow believed that people must overcome their other needs – described
above -, not only achieve them. At this level, individual differences are the largest.

As each level is adequately satisfied, we are then motivated to satisfy the next level in the
hierarchy, always new and higher needs are coming. This is what we mean, when the basic
human needs are drawn like a pyramid, a hierarchy. Life experiences, including divorce and loss
of job, may cause an individual to fluctuate between levels of the hierarchy. These five different
levels were further sub-categorised into two main groups: deficiency and growth needs.

Deficiency needs – The very basic needs for survival and security.
These needs include:
• physiological needs
• safety and security needs
• social needs – belongingness and love
• esteem needs
It may not cause a physical indication if these ‘deficiency needs’ are not fulfilled, but the
individual will feel anxious and tense. So the most basic level of needs must be fulfilled before a
person wants to focus on the secondary or higher level needs.

Growth needs – Personal growth and fulfilment of personal potential.

These needs include:
• self-actualisation needs

This hierarchy is not as rigid as we may have implied. For example, there are some humans for
whom self-esteem or self-actualization seems to be more important than love or belonging. The
popularity of this theory of motivation rooted in its simplicity and logic.

2. McClelland – Need for achievement, affiliation and power

In the early 1960s McClelland – built on Maslow’s work – described three human motivators.
McClelland (Arnold et al., 2005) claimed that humans acquire, learn their motivators over time
that is the reason why this theory is sometimes called the ‘Learned Needs Theory’. He affirms
that we all have three motivating drivers, and it does not depend on our gender or age. One of
these drives or needs will be dominant in our behaviour.
McClelland’s theory differs from Maslow’s and Alderfer’s, which focus on satisfying existing
needs rather than creating or developing needs. This dominant motivator depends on our culture
and life experiences, of course (but the three motivators are permanent). The three motivators
are:
• achievement: a need to accomplish and demonstrate competence or mastery
• affiliation: a need for love, belonging and relatedness
• power: a need for control over one’s own work or the work of others
These learned needs could lead to diversity and variety between employees. More precisely,
prioritization and importance of these motivational needs characterises a person’s behaviour. As
we wrote, although each person has all of these needs to some extent, only one of them tends to
motivate an individual at any given time.

Achievement motivation – a need to accomplish and demonstrate competence or mastery. It

pertains to a person’s need for significant success, mastering of skills, control or high standards.
It is associated with a range of actions. Individual seek achievement, attainment of challenging
(and also realistic) goals, and advancement in the school or job.
This need is influenced by internal drivers for action (intrinsic motivation), and the pressure used
by the prospects of others (extrinsic motivation). Low need for achievement could mean that
individuals want to minimise risk of failure, and for this reason people may choose very easy or
too difficult tasks, when they cannot avoid failure. In contrast, high need for achievement means
that humans try to choose optimal, sufficiently difficult tasks, because they want to get the
chance to reach their goals, but they have to work for it, they need to develop themselves.
Individuals with high need for achievement like to receive regular feedback on their progress and
achievements; and often like to work alone; seek challenges and like high degree of
independence.
Sources of high need for achievement can be: praise for success, goal setting skills, one’s own
competence and effort to achieve something, and it does not depend only on luck; of course
positive feelings and also independence in childhood. McClelland said that training, teaching can
increase an individual’s need for achievement. For this reason, some have argued that need for
achievement is not a need but a value.

Affiliation motivation – a need for love, belonging and relatedness

These people have a strong need for friendships and want to belong within a social group, need
to be liked and held in popular regard. They are team players, and they may be less effective in
leadership positions. High-need-for-affiliation persons have support from those with whom they
have regular contact and mostly are involved in warm interpersonal relationships. After or during
stressful situation individuals need much more affiliation. In these situations people come
together and find security in one another. There are times when individuals want to be with
others and at other times to be alone – affiliation motivation can become increased or decreased.
Individuals do not like high risk or uncertainty.

Authority/power motivation – a need to control over one’s own work or the work of others.
These persons are authority motivated. There is a strong need to lead and to succeed in their
ideas. It is also needed to increase personal status and prestige. This person would like to control
and influence others. McClelland studied male managers with high need for power and high need
for affiliation and found that managers with a high need for power tended to run more productive
departments in a sales organization than did managers with a high need for affiliation.
It is important to speak about gender differences in need for power. It is said that men with high
need for power mostly have higher aggression, drink more, act in sexually exploitative manner,
and participate in competitive sports, and also political unrests. At the same time women with
higher need for power show more socially acceptable and responsible manner, are more
concerned and caring. These types of people prefer to work in big, multinational organisations,
businesses and other influential professions.

McClelland argues that strong need for achievement people can become the best leaders – as we
wrote it above. But at the same time there can be a tendency to request too much of their
employees, because they think that these people are also highly achievement-focused and results-
driven, as they are. Think about your teachers and professors! I am sure they all want the best for
you, they would like to develop you, but I do not think you feel the same every time. McClelland
said that most people have and show a combination of these characteristics.

3. Herzberg – Two factor theory

It is also called motivation-hygiene theory.

This theory says that there are some factors (motivating factors) that cause job satisfaction, and
motivation and some other also separated factors (hygiene factors) cause dissatisfaction That
means that these feelings are not opposite of each other, as it has always previously been
believed.
Opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. According to Herzberg
(1987) the job satisfiers deal with the factors involved in doing the job, whereas the job
dissatisfiers deal with the factors which define the job context.

If the hygiene factors, for example salary, working conditions, work environment, safety and
security are unsuitable (low level) at the workplace, this can make individuals unhappy,
dissatisfied with their job. Motivating factors, on the other hand, can increase job satisfaction,
and motivation is based on an individual's need for personal growth. If these elements are
effective, then they can motivate an individual to achieve above-average performance and effort.
For example, having responsibility or achievement can cause satisfaction (human characteristics)
(Dartey-Baah, 2011).
Hygiene factors are needed to ensure that an employee is not dissatisfied. Motivation factors are
needed to ensure employee's satisfaction and to motivate an employee to higher performance.

Table 1. Herzberg's Two Factory Theory (Source: Author's own table)

Dissatisfaction – Low level
No dissatisfaction-High level Hygiene factors
No satisfaction – Low level
Satisfaction – High level Motivating factors

Herzberg’s five factors of job satisfaction (motivating factors):

• achievement
• recognition
• work itself
• responsibility
• advancement
Only these factors can motivate us. But at the same time we need the lack of dissatisfactions (we
need hygiene factors, "workpeace") to achieve more efficient work.
Herzberg’s five factors of job dissatisfaction (hygiene factors – deficiency needs):
• company policy and administration
• supervision
• salary
• interpersonal relationships
• working conditions
Can we motivate with money, with higher salary? What did Herzberg and Maslow say? Is it just
the same or something different?
Herzberg addressed salary not a motivator in the way that the primary motivators are, just like
achievement and recognition. Salary can be a motivator, if you get always higher and higher
salary, but we cannot say that it is an incentive. Maslow said, money or salary is needed to buy
food to eat, to have some place to live and sleep, etc. It can be a physiological need. Some
differences between Herzberg and Maslow theory are described in Table 2.

Opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. According to Herzberg

(1987) the job satisfiers deal with the factors involved in doing the job, whereas the job
dissatisfiers deal with the factors which define the job context.

If the hygiene factors, for example salary, working conditions, work environment, safety and
security are unsuitable (low level) at the workplace, this can make individuals unhappy,
dissatisfied with their job. Motivating factors, on the other hand, can increase job satisfaction,
and motivation is based on an individual's need for personal growth. If these elements are
effective, then they can motivate an individual to achieve above-average performance and effort.
For example, having responsibility or achievement can cause satisfaction (human characteristics)
(Dartey-Baah, 2011).
Hygiene factors are needed to ensure that an employee is not dissatisfied. Motivation factors
are needed to ensure employee's satisfaction and to motivate an employee to higher performance.

Table 1. Herzberg's Two Factory Theory (Source: Author's own table)

Dissatisfaction – Low level
No dissatisfaction-High level Hygiene factors
No satisfaction – Low level
Satisfaction – High level Motivating factors

Herzberg’s five factors of job satisfaction (motivating factors):

• achievement
• recognition
• work itself
• responsibility
• advancement
Only these factors can motivate us. But at the same time we need the lack of dissatisfactions
(we need hygiene factors, "workpeace") to achieve more efficient work.
Herzberg’s five factors of job dissatisfaction (hygiene factors – deficiency needs):
• company policy and administration
• supervision
• salary
• interpersonal relationships
• working conditions
Can we motivate with money, with higher salary? What did Herzberg and Maslow say? Is it
just the same or something different?
Herzberg addressed salary not a motivator in the way that the primary motivators are, just
like achievement and recognition. Salary can be a motivator, if you get always higher and higher
salary, but we cannot say that it is an incentive. Maslow said, money or salary is needed to buy
food to eat, to have some place to live and sleep, etc. It can be a physiological need. Some
differences between Herzberg and Maslow theory are described in Table 2.

4. McGregor Theory X and Theory Y

The concept of Theory X and Theory Y was developed by social psychologist Douglas
McGregor. It describes two contrasting sets of assumptions that managers make about their
people:
  Theory X – people dislike work, have little ambition, and are unwilling to take
responsibility. Managers with this assumption motivate their people using a rigid "carrot
and stick" approach, which rewards good performance and punishes poor performance.
 Theory Y – people are self-motivated and enjoy the challenge of work. Managers with
this assumption have a more collaborative relationship with their people, and motivate
them by allowing them to work on their own initiative, giving them responsibility, and
empowering them to make decisions.
Though your assumptions about what motivates your people will likely have the biggest impact
on which of these two approaches you take, your choice can also be shaped by several other
factors. These include your organizational structure (tiered or flat), the type of work that your
people do (repetitive or challenging), and their skill level (amateur or experienced).

5. Goal Setting Theory

Edwin Locke’s goal-setting theory argues that for goal-setting to be successful with desired
outcomes, they must contain the following specific points (Lunenberg & Samaras, 2011):

 Clarity: goals need to be specific;

 Challenging: goals must be difficult yet attainable;
 Goals must be accepted;
 Feedback must be provided on goal attainment;
 Goals are more effective when they are used to evaluate the performance;
 Deadlines improve the effectiveness of goals;
 A learning goal orientation leads to higher performance than a performance goal
orientation;
 Group goal-setting is as important as individual goal-setting.

To make the memorization of these points easier, the acronym SMART may help you recall what
the most important attributes of effective goal-setting are:

 Specific;
 Measurable;
 Achievable;
 Realistic;
 Time-based.

6. Self Efficacy Theory

According to Bandura, self-efficacy is "the belief in one’s capabilities to organize and execute
the courses of action required to manage prospective situations." In other words, self-efficacy is
a person’s belief in his or her ability to succeed in a particular situation. Bandura described these
beliefs as determinants of how people think, behave, and feel (1994).

The Role of Self-Efficacy

Virtually all people can identify goals they want to accomplish, things they would like to change,
and things they would like to achieve. However, most people also realize that putting these plans
into action is not quite so simple. Bandura and others have found that an individual’s self-
efficacy plays a major role in how goals, tasks, challenges, including crisis, failed projects, and
scandals are approached.
Strong Sense of Self-Efficacy
People with a strong sense of self-efficacy:

 View challenging problems as tasks to be mastered

 Develop deeper interest in the activities in which they participate
 Form a stronger sense of commitment to their interests and activities
 Recover quickly from setbacks and disappointments

A strong sense of efficacy enhances personal accomplishment in many ways. People with high
efficacy approach difficult tasks as challenges to be mastered rather than as threats to be avoided.
Such an efficacious outlook fosters interest and deep engrossment in activities. They set
themselves challenging goals and maintain strong commitment to them. They maintain a task-
diagnostic focus that guides effective performance. They heighten and sustain their efforts in the
face of failure. They attribute failure to insufficient effort or deficient knowledge and skills that
are acquirable. They quickly recover their sense of efficacy after failures or setbacks. They
approach threatening situations with assurance that they can exercise control over them. Such an
efficacious outlook produces personal accomplishments, reduces stress, and lowers vulnerability
to depression.
Low Sense of Self-Efficacy
People with a weak sense of self-efficacy:

 Avoid challenging tasks

 Believe that difficult tasks and situations are beyond their capabilities
 Focus on personal failings and negative outcomes
 Quickly lose confidence in personal abilities

People who have a low sense of efficacy in a given domain shy away from difficult tasks, which
they perceive as personal threats. They have low aspirations and weak commitment to the goals
they choose to pursue. They maintain a self-diagnostic focus rather than concentrate on how to
perform successfully. When faced with difficult tasks, they dwell on their personal deficiencies,
on the obstacles they will encounter, and on all kinds of adverse outcomes. They slacken their
efforts and give up quickly in the face of difficulties. They are slow to recover their sense of
efficacy following failure or setbacks. Because they diagnose insufficient performance as
deficient aptitude, it does not require much failure for them to lose faith in their capabilities.
They fall easy victim to stress and depression.

The multiple benefits of a sense of personal efficacy do not arise simply from the incantation of
capability. Saying something should not be confused with believing it to be so. Simply saying
that one is capable is not necessarily self-convincing that it is true. Self-efficacy beliefs are the
product of a complex process of self-persuasion and a deep knowing that relies on cognitive
processing of diverse sources of efficacy information conveyed enactively, vicariously, socially,
and physiologically (A. Bandura, 1986). Once formed, efficacy beliefs contribute significantly to
the level and quality of human functioning.

Sources of Self-Efficacy
How does self-efficacy develop? These beliefs begin to form in early childhood as children deal
with a wide variety of experiences, tasks, and situations. However, the growth of self-efficacy
does not end during youth, but continues to evolve throughout life as people acquire new skills,
experiences, and understanding.

According to Bandura, there are four major sources of self-efficacy.

A new CEO was suddenly promoted without any transition between roles or assistance from the
prior CEO. Little transference of information or role knowledge was provided. The suddenness
of the promotion created a ripple in the organization with much disagreement with the selection.
Blatant challenges to the CEO’s competency as well as right to the position were common. The
organization struggled from a void in leadership while the CEO struggled to find confidence in
the role. Self-efficacy waffled from brilliant vision of what could be to massive second-guessing.
Once the CEO got over the shock and realized that some of the leadership would never accept
the selection, a new team was built that could support the CEO. The CEO regained his sense of
self and moved the organization into a long and successful tenure.

1. Mastery Experiences: Bandura believed that the most effective way of developing a strong
sense of efficacy is through mastery experiences." Performing a task successfully strengthens our
sense of self-efficacy. However, failing to adequately deal with a task or challenge can
undermine and weaken self-efficacy. A critical component of mastery is that it requires the
leader to accurately assess what is factual versus what is imagination. When under immense
stress, it is not always clear what the facts are.

2. Social Modeling: Witnessing other people successfully completing a task is another important

source of self-efficacy. According to Bandura, seeing people similar to oneself succeed by
sustained effort raises observers' beliefs that they too possess the capabilities to master
comparable activities to succeed. For example, one client was not able to get her land-legs under
her. He had successfully led the organization through a multi-year growth spurt that suddenly
stopped as significant competition began to erode market share. It was suggested that the client
meet with other CEO’s in related situations. One acquaintance became a mentor that suggested
visiting the organization and providing some feedback. Besides the feedback, she shared her
experiences including detailed description of actions taken. Thereafter the client reclaimed his
competency and moved the organization into the direction to address the competition and
streamline the organization to be more agile.

One client was struggling with getting a clear perspective of not only the market but in how to
lead a change. We focused on past successes through an in-depth reflection process. After a brief
but deep dive into past successes (and project failures), a deep knowing appeared that supported
moving forward. As coach, the focus was on supporting the client to fully unravel what had led
to prior successes and learning from project failures. As a result, the client seemed to complete a
deep integration within himself that fortified his self-efficacy.

3. Social Persuasion: Bandura indicated that people could be persuaded to believe that they
have the skills and capabilities to succeed. Consider a time when someone said something
positive and encouraging that helped you achieve a goal. Getting verbal encouragement from
others helps people overcome self-doubt and instead focus on giving their best effort to the task
at hand.
4. Psychological Responses: Our own responses and emotional reactions to situations also play
an important role in self-efficacy. Moods, emotional states, physical reactions, and stress levels
can all impact how a person feels about their personal abilities in a particular situation. A person
who becomes extremely nervous before speaking in public may develop a weak sense of self-
efficacy in these situations. For example, one client tended to get tongue-tied when publically
speaking. Rather than focus on the speech (and his fear of embarrassment), the focus became on
telling an interesting story by being fully present to himself and to the story. His self-efficacy
returned shortly after he began. He had realized that the story was as much the audience's (his
direct reports) as it was his. He expressed how proud he was of their performance and flew
through the presentation. Hence, it is not the sheer intensity of emotional and physical reactions
that is important but rather how they are perceived and interpreted by the individual. By learning
how to minimize stress and elevate mood when facing difficult or challenging tasks, people can
improve their sense of self-efficacy.

7. Reinforcement Theory

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that
individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e,
individual’s behaviour with positive consequences tends to be repeated, but individual’s
behaviour with negative consequences tends not to be repeated.

Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner
feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what
happens to an individual when he takes some action. Thus, according to Skinner, the external
environment of the organization must be designed effectively and positively so as to motivate the
employee. This theory is a strong tool for analyzing controlling mechanism for individual’s
behaviour. However, it does not focus on the causes of individual’s behaviour.

The managers use the following methods for controlling the behaviour of the employees:
Positive Reinforcement- This implies giving a positive response when an individual
shows positive and required behaviour. For example - Immediately praising an employee
for coming early for job. This will increase probability of outstanding behaviour occurring
again. Reward is a positive reinforce, but not necessarily. If and only if the employees’
behaviour improves, reward can said to be a positive reinforcer. Positive reinforcement
stimulates occurrence of a behaviour. It must be noted that more spontaneous is the giving
of reward, the greater reinforcement value it has.
Negative Reinforcement- This implies rewarding an employee by removing negative /
undesirable consequences. Both positive and negative reinforcement can be used for
increasing desirable / required behaviour.
Punishment- It implies removing positive consequences so as to lower the probability of
repeating undesirable behaviour in future. In other words, punishment means applying
undesirable consequence for showing undesirable behaviour. For instance - Suspending an
employee for breaking the organizational rules. Punishment can be equalized by positive
reinforcement from alternative source.
Extinction- It implies absence of reinforcements. In other words, extinction implies
lowering the probability of undesired behaviour by removing reward for that kind of
behaviour. For instance - if an employee no longer receives praise and admiration for his
good work, he may feel that his behaviour is generating no fruitful consequence.
Extinction may unintentionally lower desirable behaviour.

8. Equity Theory of Motivation

The core of the equity theory is the principle of balance or equity. As per this motivation theory,
an individual’s motivation level is correlated to his perception of equity, fairness and justice
practiced by the management. Higher is individual’s perception of fairness, greater is the
motivation level and vice versa. While evaluating fairness, employee compares the job input (in
terms of contribution) to outcome (in terms of compensation) and also compares the same with
that of another peer of equal cadre/category. D/I ratio (output-input ratio) is used to make such a
comparison.

Ratio Comparison Perception

O/I a < O/I b Under-rewarded (Equity Tension)
O/I a = O/I b Equity
O/I a > O/I b Over-rewarded (Equity Tension)

Negative Tension state: Equity is perceived when this ratio is equal. While if this ratio is
unequal, it leads to “equity tension”. J.Stacy Adams called this a negative tension state which
motivates him to do something right to relieve this tension. A comparison has been made
between 2 workers A and B to understand this point.

Referents: The four comparisons an employee can make have been termed as “referents”
according to Goodman. The referent chosen is a significant variable in equity theory. These
referents are as follows:

Self-inside: An employee’s experience in a different position inside his present organization.

Self-outside: An employee’s experience in a situation outside the present organization.
Other-inside: Another employee or group of employees inside the employee’s present
organization.
Other-outside: Another employee or employees outside the employee’s present organization.

An employee might compare himself with his peer within the present job in the current
organization or with his friend/peer working in some other organization or with the past jobs
held by him with others. An employee’s choice of the referent will be influenced by the appeal of
the referent and the employee’s knowledge about the referent.

Moderating Variables: The gender, salary, education and the experience level are moderating
variables. Individuals with greater and higher education are more informed. Thus, they are likely
to compare themselves with the outsiders. Males and females prefer same sex comparison. It has
been observed that females are paid typically less than males in comparable jobs and have less
salary expectations than male for the same work. Thus, a women employee that uses another
women employee as a referent tends to lead to a lower comparative standard. Employees with
greater experience know their organization very well and compare themselves with their own
colleagues, while employees with less experience rely on their personal experiences and
knowledge for making comparisons.

Choices: The employees who perceive inequity and are under negative tension can make the
following choices:

Change in input (e.g. Don’t overexert)

Change their outcome (Produce quantity output and increasing earning by sacrificing quality
when piece rate incentive system exist)
Choose a different referent
Quit the job
Change self perception (For instance - I know that I’ve performed better and harder than
everyone else.)
Change perception of others (For instance - Jack’s job is not as desirable as I earlier thought it
was.)

Assumptions of the Equity Theory

The theory demonstrates that the individuals are concerned both with their own rewards and also
with what others get in their comparison.
Employees expect a fair and equitable return for their contribution to their jobs.
Employees decide what their equitable return should be after comparing their inputs and
outcomes with those of their colleagues.
Employees who perceive themselves as being in an inequitable scenario will attempt to reduce
the inequity either by distorting inputs and/or outcomes psychologically, by directly altering
inputs and/or outputs, or by quitting the organization.

9. Vroom expectancy motivation theory

Whereas Maslow and Herzberg look at the relationship between internal needs and the resulting
effort expended to fulfil them, Vroom's expectancy theory separates effort (which arises from
motivation), performance, and outcomes.

Vroom's expectancy theory assumes that behavior results from conscious choices among
alternatives whose purpose it is to maximize pleasure and to minimize pain. Vroom realized that
an employee's performance is based on individual factors such as personality, skills, knowledge,
experience and abilities. He stated that effort, performance and motivation are linked in a
person's motivation. He uses the variables Expectancy, Instrumentality and Valence to account
for this.

Expectancy is the belief that increased effort will lead to increased performance i.e. if I work
harder then this will be better. This is affected by such things as:
1. Having the right resources available (e.g. raw materials, time)
2. Having the right skills to do the job
3. Having the necessary support to get the job done (e.g. supervisor support, or correct
information on the job)

Instrumentality is the belief that if you perform well that a valued outcome will be received.
The degree to which a first level outcome will lead to the second level outcome. i.e. if I do a
good job, there is something in it for me. This is affected by such things as:
 1. Clear understanding of the relationship between performance and outcomes – e.g. the
rules of the reward 'game'
2. Trust in the people who will take the decisions on who gets what outcome
3. Transparency of the process that decides who gets what outcome

Valence is the importance that the individual places upon the expected outcome. For the valence
to be positive, the person must prefer attaining the outcome to not attaining it. For example, if
someone is mainly motivated by money, he or she might not value offers of additional time off.
The three elements are important behind choosing one element over another because they are
clearly defined: effort-performance expectancy (E>P expectancy) and performance-outcome
expectancy (P>O expectancy).

E>P expectancy: our assessment of the probability that our efforts will lead to the required
performance level.
P>O expectancy: our assessment of the probability that our successful performance will lead to
certain outcomes.

Crucially, Vroom's expectancy theory works on perceptions – so even if an employer thinks

they have provided everything appropriate for motivation, and even if this works with most
people in that organisation, it doesn't mean that someone won't perceive that it doesn't work for
them.
At first glance expectancy theory would seem most applicable to a traditional-attitude work
situation where how motivated the employee is depends on whether they want the reward on
offer for doing a good job and whether they believe more effort will lead to that reward.
However, it could equally apply to any situation where someone does something because they
expect a certain outcome. For example, I recycle paper because I think it's important to conserve
resources and take a stand on environmental issues (valence); I think that the more effort I put
into recycling the more paper I will recycle (expectancy); and I think that the more paper I
recycle then less resources will be used (instrumentality)

Thus, Vroom's expectancy theory of motivation is not about self-interest in rewards but about the
associations people make towards expected outcomes and the contribution they feel they can
make towards those outcomes.

10. Self-Determination Theory Of Motivation

A recent theory of motivation based on the idea of needs is self-determination theory, proposed
by the psychologists Edward Deci and Richard Ryan (2000), among others. The theory proposes
that understanding motivation requires taking into account three basic human needs:
 autonomy—the need to feel free of external constraints on behavior
 competence—the need to feel capable or skilled
  relatedness—the need to feel connected or involved with others

Note that these needs are all psychological, not physical; hunger and sex, for example, are not on
the list. They are also about personal growth or development, not about deficits that a person
tries to reduce or eliminate. Unlike food (in behaviorism) or safety (in Maslow’s hierarchy), you
can never get enough of autonomy, competence, or relatedness. You (and your students) will
seek to enhance these continually throughout life.

The key idea of self-determination theory is that when persons (such as you or one of your
students) feel that these basic needs are reasonably well met, they tend to perceive their actions
and choices to be intrinsically motivated or “self-determined.” In that case they can turn their
attention to a variety of activities that they find attractive or important, but that do not relate
directly to their basic needs. Among your students, for example, some individuals might read
books that you have suggested, and others might listen attentively when you explain key
concepts from the unit that you happen to be teaching. If one or more basic needs are not met
well, however, people will tend to feel coerced by outside pressures or external incentives. They
may become preoccupied, in fact, with satisfying whatever need has not been met and thus
exclude or avoid activities that might otherwise be interesting, educational, or important. If the
persons are students, their learning will suffer.

Self-determination and intrinsic motivation

In proposing the importance of needs, then, self-determination theory is asserting the importance
of intrinsic motivation. The self-determination version of intrinsic motivation, however,
emphasizes a person’s perception of freedom, rather than the presence or absence of “real”
constraints on action. Self-determination means a person feels free, even if the person is also
operating within certain external constraints. In principle, a student can experience self-
determination even if the student must, for example, live within externally imposed rules of
appropriate classroom behavior. To achieve a feeling of self-determination, however, the
student’s basic needs must be met—needs for autonomy, competence, and relatedness. In
motivating students, then, the bottom line is that teachers have an interest in helping students
to meet their basic needs, and in not letting school rules or the teachers’ own leadership styles
interfere with or block satisfaction of students’ basic needs.

“Pure” self-determination may be the ideal for most teachers and students, of course, but the
reality is usually different. For a variety of reasons, teachers in most classrooms cannot be
expected to meet all students’ basic needs at all times. One reason is the sheer number of
students, which makes it impossible to attend to every student perfectly at all times. Another
reason is teachers’ responsibility for a curriculum, which can require creating expectations for
students’ activities that sometimes conflict with students’ autonomy or makes them feel
(temporarily) less than fully competent. Still another reason is students’ personal histories,
ranging from divorce to poverty, which may create needs in some individuals which are beyond
the power of teachers to remedy.

The result from students’ point of view is usually only a partial perception of self-determination,
and therefore a simultaneous mix of intrinsic and extrinsic motivations. Self-determination
theory recognizes this reality by suggesting that the “intrinsic-ness” of motivation is really a
matter of degree, extending from highly extrinsic, through various mixtures of intrinsic and
extrinsic, to highly intrinsic (Koestner & Losier, 2004). At the extrinsic end of the scale is
learning that is regulated primarily by external rewards and constraints, whereas at the intrinsic
end is learning regulated primarily by learners themselves. Table 1 summarizes and gives
examples of the various levels and their effects on motivation. By assuming that motivation is
often a mix of the intrinsic and extrinsic, the job of the teacher becomes more realistic; the job is
not to expect purely intrinsic motivation from students all the time, but simply to arrange and
encourage motivations that are as intrinsic as possible. To do this, the teacher needs to support
students’ basic needs for autonomy, competence, and relatedness.

PERCEPTION

Definition of perception

Perception means perceiving, i.e., giving meaning to the environment around us. It can be
defined as a process which involves seeing, receiving, selecting, organising, interpreting and
giving meaning to the environment.

Nature of perception

(1) Perception is the intellectual process.

(2) Perception is the basic cognitive or psychological process.

(3) Perception becomes a subjective process and different people may perceive the same event
differently.

Perception and Sensation

There is a distinction between sensation and perception. Sensation is the response of a physical
sensory organ. The physical senses are vision, hearing, tough, smell and taste. These senses are
bombarded by stimuli and reactions in particular sense organ take place because of these, e.g., of
sensation may be reaction of eye to colour, ear to sound and so on. Sensation percedes
perception. Perception is much more than sensation. Perception depends upon the sensory raw
data. The perceptual process adds to or/and subtracts from the sensory world. Perception is
determined by both physiological and psychological characteristics, of the organism. However,
sensation only activates the organs of the body and is not affected by such psychological factors
as learning and motives. Activation of eyes to see an object is sensation and the inference what is
being seen is perception. For managerial action, it is the latter which is important.

.
Perceptual Process

Perception is a process of receiving, selecting, organising, 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 behaviour/action as 'output'. The whole perceptional process can be
presented as follows : These are explained one by one

1. 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).

2. 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'.

3. Organization of Stimuli : Organising the bits of information into a meaningful whole is called
"organization". There are three ways by which the selected data, i.e., inputs are organised. These
are :

(i) Grouping, (ii) Closure and (iii) Simplification.

(i) 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.
(ii) 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, or
hunches. 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.

(iii) Simplification : People identify main stimulus features and assesses how they are organized.
He interprets a stimulus situation, the perceiver simples the information.

Factors Influencing Perceptual Set

External Factors

1. Size : Bigger size attracts the attention of the perceiver

2. Intensity : A loud sound, strong odor or bright light is noticed more as compared to a soft
sound, weak odour or dimlight.

3. Repetition : A repeated external stimulus is more attention getting than a single one.
Advertisers use this principle.

4. Novelty and Familiarity : A novel or a familiar external situation can serve as attention getter.

5. Contrast : It is a kind of uniqueness which can be used for attention getting. Letters of bold
types, persons dressed differently than others, etc., get more attention.

6. Motion : A moving object draws more attention as compared to a stationary object.

Advertisers use this principle.

Internal Factors

Self-concept : The way a person views the world depends a great deal on the concept or image he
has about himself. The concept plays an internal role in perceptual selectivity.

Beliefs : A person's beliefs have profound influence on his perception. Thus, a fact is conceived
not on what it is but what a person believes it to be.

Expectations : These affect what a person perceives. A technical manager may expect ignorance
about the technical features of a product from non-technical people.

Inner Needs : The need is a feeling of tension or discomfort, when one thinks he is missing
something. People with different needs experience different stimuli. According to Freud, wishful
thinking is the means by which the Id attempts to achieve tension reduction.
Response Disposition : It refers to a person's tendency to perceive familiar stimuli rather than
unfamiliar ones.

Response Salience : It is the set of disposition which are determined not by the familiarity of the
stimulus situations, but by the person's own cognitive predispositions. Thus, a particular problem
may be viewed as a marketing problem by marketing personnel, a control problem by accounting
people and human relations problem by personnel people.

Perceptual Defence : It refers to the screening of those elements which create conflict and
threatening situation in people.

1. Denying the existence or importance of conflicting information.

2. Distorting the new information to match the old one.

3. Acknowledging the new information but treating it as a non-representation exception. The

factors that influence perception may be broadly divided into three categories :

1. Factors that reside in the 'Perceiver' (i.e., attitude, motives, interests, past experiences and
personality, expectations)

2. Factors of the 'situation' and-factors connected with the 'Target'.

3. Factors that determine the preferred location of a brand on each of the relevant dimension in
perceptive mapping.

Perceptual Errors

As seen above perception is the process of analyzing and understanding a stimulus as it is. But it
may not be always possible to perceive the stimuli as they are. Knowingly or unknowingly, we
mistake the stimulus and perceive it wrongly.

Many times the prejudices in the individual, time of perception, unfavorable background, lack of
clarity of stimulus, confusion, conflict in mind and such 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 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 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. 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.
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 the shortcut called stereotyping.
or example, a boss might assume that a worker from a Middle East country is lazy and cannot
meet performance objective, even if the worker tried his best.

Similarity
Often, 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 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 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.

Central Tendency
In performance appraisals or recruitment interviews, tendency of managers and interviewers to
rate all or most of the employees or interviewees as average.

Anchoring Bias
During decision making, anchoring occurs when individuals use an initial piece of information to
make subsequent judgments. Once an anchor is set, other judgements are made by adjusting
away from that anchor, and there is a bias toward interpreting other information around the
anchor.

For example, the initial price offered for a used car sets the standard for the rest of the
negotiations, so that prices lower than the initial price seem more reasonable even if they are still
higher than what the car is really worth.

Studies have shown that anchoring is very difficult to avoid. For example, in one study students
were given anchors that were obviously wrong. They were asked whether Mahatma Gandhi died
before or after age 9, or before or after age 140. Clearly neither of these anchors are correct, but
the two groups still guessed significantly differently (choosing an average age of 50 vs. an
average age of 67).

Confirmation bias
Confirmation bias occurs from the direct influence of desire on beliefs. When people would like
a certain idea or concept to be true, they end up believing it to be true. They are motivated by
wishful thinking. This error leads the individual to stop gathering information when the evidence
gathered so far confirms the views or prejudices one would like to be true.

Once we have formed a view, we embrace information that confirms that view while ignoring, or
rejecting, information that casts doubt on it. Confirmation bias suggests that we don’t perceive
circumstances objectively. We pick out those bits of data that make us feel good because they
confirm our prejudices. Thus, we may become prisoners of our assumptions. For example, some
people will have a very strong inclination to dismiss any claims that marijuana may cause harm
as nothing more than old-fashioned reefer madness. Some social conservatives will downplay
any evidence that marijuana does not cause harm.
Escalation of Commitment

Escalation of commitment happens when someone continues to dedicate resources, including

time and money, to a failing course of action. Like management at the Long Island Lighting
Company, it is sometimes easy to feel that if we give up on a course of action, then we lose the
money and time already committed to that decision. In response, we sometimes continue to
commit resources in an attempt to turn our failure around, thereby increasing the cost and
making it that much harder to just acknowledge a bad decision and move on.

In 1966 a project to build a nuclear power plant in Long Island, New York began. It was
anticipated it would cost $75 million and be able to generate power for the growing city by 1973.
No one anticipated the pushback from local citizens, and because of that resistance the project
wasn't completed until 1986 at a cost of more than $6 billion. In the end, the plant never opened.
Why was management at the Long Island Lighting Company so willing to stick to their project
even as the cost skyrocketed and the completion date was pushed back by more than two
decades? The answer is escalation of commitment.