Assignment Topic :- Being a budding manager according to

you why OB as a subject is important and its relevance.

Also in the field of OB; the concept of “Personality” plays a
very important role to aid the budding managers like you. So
what are the “Key Characteristics” which a manager should
keep in mind.

PRIYANSHU PRAMANIK

First Semester
Project submitted for CA2 Continuous Assessment

Organization Behabiour ( MB – 102)

Date of Submission :- 21 November, 2022

Master of Business Administration (MBA)

SUPREME KNOWLEDGE FOUNDATION GROUP OF
INSTITUTIONS
❖ Organizational Behavior (OB)

The study of organizational behavior includes areas of research dedicated to

improving job performance, increasing job satisfaction, promoting innovation,
and encouraging leadership. Each has its own recommended actions, such as
reorganizing groups, modifying compensation structures, or changing methods
of performance evaluation.

❖ Importance of OB :-

1. Skill Improvement: Study of OB helps to improve skills. This included the

ability of employees and use of knowledge to become more efficient. OB study
also improves managers as well as other employee’s work-skill.

2. Understanding Consumer Buying Behaviour: It is also an important part to

improve the marketing process by understanding consumer buying behaviour.

3. Employee Motivation: OB helps to understand the basis of motivation and

different ways to motivate employees properly.

4. Nature of Employees: Understanding of Personnel and employee nature is

important to manage them properly. With the help of OB, we can understand
whether employees or people are- Extrovert, Introvert, Motivated, Dominating
and Others.

5. Anticipating Organisational Events: The scientific study of behaviour

helps to understand and predict organisational events. For example Annual
Business Planning, Demand Management, Product Line Management,
Production Planning, Resources Scheduling and Logistics etc.

6. Efficiency and Effectiveness: Study of OB helps to increase efficiency and

effectiveness of the organisation.

7. Better Environment of Organisation: OB helps to create a healthy, ethical

and smooth environment in an organisation.

8. Optimum or Better Utilisation of Resources: Study of OB helps to

understand employees and their work style and skill in better way. By

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understanding this management can train and motivate employees for optimum
utilisation of resources.

9. The Goodwill of Organisation: OB helps to improve the goodwill of

organisation. The crux about the significance or importance is that OB helps to
increase efficiency and productivity of the organisational forces. This may lead
to an increase in the profit of the organisation.

❖ Applications in Industry:-
Role of Organisational Behaviour in Management of Business Organisational
behaviour provides solution as well as insight towards solution to many
challenges which are faced by the organisations. Some of the important roles
performed by organisational behaviour in management of business are as
follows:-

1. Globalisation- Due to globalisation, organisations are no longer confined to

one particular country. The Manager’s job is changing with the expansion of the
organisations across the national borders. Example, Volkswagen builds its cars
in Mexico, Mercedes and BMW in South Africa. Due to globalisation, the
management has to deal with the problems of unfamiliar languages, laws, work
ethics, management styles etc. The functions of hiring, training, etc must
acquire a global perspective. Organisational Behaviour helps the management to
become flexible and proactive and enables it to execute the organisation on a
global scale.

2. Managing work Force Diversity- Organisations are a heterogeneous mix of

people in terms of age, gender, race etc. Managing the workforce diversity has
become a global concern. Managers have to deal with individuals and groups
belonging to different ethnic cultures. They have to exercise control and
channelize behaviour in the desired direction. Organisational behaviour helps
the managers to effectively deal with work force diversity by promoting its
awareness, increasing diversity skills, encouraging culture and gender diversity.

3. Improving Quality and Productivity- Industries are facing the problem of

excess supply. This has increased competition to a large extent. Almost every
Manager is confronting the same problem of improving the productivity, quality
of the goods and services their organisation is providing. Programmes such as

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business process reengineering, and total Quality Management are being
implemented to achieve these ends. Organisational Behaviour helps the
Managers to empower their employees, as they are the major forces for
implementing this change.

4. Improving customer service-Most of the employees work in service sector.

The jobs in the service sector, is very demanding. It requires continuous
interaction with the organisations clients i.e. the customers. Management has to
ensure that the employees do everything to satisfy the customers of the
organisation. The attitude and behaviour of an employee affects the customer
satisfaction. Organisational Behaviour helps the managers to improve customer
service and organisational performance.

5. Improving people skills- Organisational Behaviour helps in better

management of business as it helps in improving the skills of the people. It
provides insight into the skills that the employees can use on the job such as
designing jobs and creating effective teams.

6. Innovation and Change- Organisational Behaviour helps in stimulating

innovation and change. Employees can either be a hurdle or an instrument of
change. It is organisational behaviour which fosters ideas and techniques to
promote innovation and change by improving employees creativity.

7. Work life balance- Organisations that do not help employees to achieve

work life balance will not be able to retain their most talented employees.
Organisational behaviour helps i designing flexible jobs which can help
employees deal with work life balance issues.

8. Promoting ethical Behaviour- Sometimes the organisations are in a

situation of ethical dilemma where they have to define right and wrong. It is
Organisational Behaviour which helps an important role by helping the
management to create such a week environment which is ethically healthy and
increases work productivity, job satisfaction and organisational citizenship
behaviour.

9. Creating a positive Work Environment.- Organisational behaviour helps in

creating a positive work environment in today’s where competitive pressures
are stronger than before. OB helps to develop resilience, human strength, and it
fosters vitality.

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➢ Personality
Personality encompasses the thoughts, feelings, and behaviors that describe or
define a person. Often personality is a generalization that provides insights into
how someone will perceive, feel about, and react to a given situation or
stimulus. Personality is generally an established, stable, and constant
characteristic; however, personalities do change. This is particularly true of
individuals as they are developing mentally and physically. For purposes of
organizational behavior studies, personality has a strong impact on an
individuals behavior daily and in a given circumstance.

❖ Personality Characteristics :-

Managers should learn as much as possible about personality in order to

understand their employees. Hundreds of personality characteristics have been
identified.7 personality characteristics that influence individual are:

1. Locus of Control
2. Self-Efficacy
3. Self-Esteem
4. Self-Monitoring
5. Positive/Negative Affect
6. Risk-Taking
7. Type A and Type B Personality

▪ Locus of Control

The degree to which individuals perceive control over a situation being internal
or external is called locus of control.

Locus of control refers to the range of beliefs that individuals hold in terms of
being controlled by self (internal locus) or controlled by others or the situation
(external locus).

▪ Self-Efficacy Generalized self-efficacy refers to a belief about one‘s own

ability to deal with events and challenges.

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High self-efficacy results in greater confidence in one‘s job-related abilities to
function effectively on the job. Success in previous situations leads to increased
self-efficacy for present and future challenges.

▪ Self-Esteem

An individual‘s self-worth is referred to as self-esteem. Individuals with high

selfesteem have positive feelings about themselves.

Low self-esteem individuals are strongly affected by what others think of them,
and view themselves negatively.

▪ Self-Monitoring

The extent to which people base their behavior on cues from other people and
situations is self-monitoring.

Individuals high in self-monitoring pay attention to what behavior is appropriate

in certain situations by watching others and behaving accordingly.

Low self-monitoring individuals prefer that their behavior reflects their

attitudes, and are not as flexible in adapting their behavior to situational cues.

▪ Positive/Negative Affect

Individuals exhibit attitudes about situations in a positive or negative fashion.

An individual‘s tendency to accentuate the positive aspects of situations is

referred to as positive affect, while those accentuating less optimistic views are
referred to as having negative affect.

Employees with positive affect are absent from work less often. Negative affect
individuals report higher levels of job stress.

▪ Risk-Taking

People differ in their willingness to take chances. High-risk-taking managers

made more rapid decisions and used less information in making their choices
than low risk-taking managers.

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▪ Type A and Type B Personality

Type A personality individual is aggressively involved in a chronic, struggle to

achieve more and more in less and less time, and if required to do so, against the
opposing efforts of other things or other persons.

Type B personalities are rarely harried by the desire to obtain a wildly

increasing number of things or participate in an endless growing series of events
in an ever decreasing amount of time.

➢ Conclusion

This chapter is designed to familiarize you with the concept of organizational

behavior. We have covered methods organizations might use to address issues
related to the way people behave at work. In addition, you should now be
familiar with the large number of factors, both within an individual and within
the environment, that may influence a person’s behaviors and attitudes. In the
coming years, society is likely to see a major shift in the way organizations
function, resulting from rapid technological advances, social awareness, and
cultural blending. OB studies hope to enhance an organization’s ability to cope
with these issues and create an environment that is mutually beneficial to the
company as well as its employees.