GLC OB All Chapters

CHAPTER ONE:
Foundations of
Organizational Behavior
Abraham A. (PhD)
a.abebe10@gmail.com
Learning Objectives
What is meant by organizational behavior?
What is the importance of OB for organizations?
How do you approach the study of OB?
What are the characteristic features of OB?

ORGANIZATIONAL BEHAVIOR
Organizational Behavior?
What are Organizations?

• A consciously coordinated social unit, composed of two or more
people, that functions on a relatively continuous basis to achieve a
common goal or set of goals
• Organizations are structured process in which people interact and
influence each other in order to achieve goals or objectives.
What is a Behavior?
A behaviour is What people think, feel and do.
WHAT IS ORGANIZATION BEHAVIOR?
• OB deals with the study of human beings and their behavior within
the work settings and the interface between human behavior, group
behavior and the organization itself.
• It is an academic discipline devoted to understanding individual and

group behavior, interpersonal processes, and organizational
dynamics.
• OB for short, is the study of human behavior in organizations.

WHAT IS ORGANIZATION BEHAVIOR?
• Organizational behavior is the systematic study of actions and
attitudes that people exhibit within Organizations.
• Systematic: It is not based on intuition or gut feeling, it uses scientific

evidence, measurable and interpreted in a rational manner
• Actions: It studies actions such as productivity, absenteeism, and

turnover.
• Attitudes: It studies attitudes of people such as job satisfaction.

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Levels of OB Studies and Analysis
OB is a field of study with three different levels and perspectives, individuals,
groups, organisation. Many OB text books tend to adopt this level of analysis.
Individual Level
Group Level
Organizational Level
Individual Level Studies and Analysis
Individual
• Value
• Attitude Individual Level
• Personality
• Perception
Group Level
• Emotion
• Learning
• Ethics
• Satisfaction Organizational Level
• Motivation
Group Level Studies and Analysis
Individual Level
Groups
• Group dynamics
Group Level
• Communication
• Leadership
• Conflict Organizational Level
Levels of OB Studies and Analysis
Organization
• Power & Politics Individual Level
• Organizational
Design & structure Group Level
• Organizational
Culture
• Organizational Organizational Level
Change
Challenges Facing the Workplace
Organizational Level
•
•
Productivity
•
Developing effective employees
•
Global competition
Managing in the global village
Group Level
•
• Working with others Workplace
Workforce diversity
Individual Level
•
•
Job satisfaction
•
Empowerment
Behaving ethically
Contributing disciplines to the field of OB
Psychology Social
Sociology
Psychology
Political
Anthropology Science
Psychology
Sociology
Social Psychology
Anthropology
Political Science
Elements of OB
• The key elements in OB are;

❑people,
❑structure,
❑technology and
❑the external environment in which the organization operates.
• People are recruited by the organization so as to achieve the objective.
• This calls for a definite structure of the organization.
• The organization also needs technology to help in getting the job done.
• Thus, there is an interaction of people, the external environmental influences,

structure and technology..
CXS of OB
▪ OB is just getting accepted as a science and hence it is not yet a full-fledged

discipline. It is still a field of study only.
▪ It is normative science; in the sense that it applies the research findings to get
organizational results that are acceptable to society.
▪ OB focuses on humanitarian aspects and believes that people‘s needs are to be

attended to and that motivating people can result in peak performance of the
organization.
▪ It values individuals as thinking and feeling organism.
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Cont’d…
• OB is objective oriented. The basic objective is to solve the organizational

problems with respect to human behaviour aspect.
• OB concentrates on applied researches.
• OB draws ideas and knowledge from different disciplines like psychology,

sociology and anthropology, economics, political science, law and history. Hence it
is interdisciplinary in nature.
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OB Models
• A model is an abstraction of reality, a simplified representation of some real world

phenomenon.
• Every organization has to develop a behavioural model of its employees for its
effective studying.
• The specific mission and vision of the management and the pre-formed opinion
about the people of course influence this model.
• The opinions or assumptions about the people vary to a great extent resulting in
the development of different OB models.
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Basic OB Model
• The basic OB Model proposes three types of variables; Inputs, Processes, and
Outcomes at three levels of analysis (individual, group, and organizational).
• The model proceeds with inputs leading to processes and processes leading to
outcomes.
• Notice that the model also shows that outcomes can influence inputs in the
future.
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Cont’d…
Inputs
• Inputs are the variables like personality, group structure, and organizational culture
that lead to processes.
• These variables set the stage for what will occur in an organization later.
• Many are determined in advance of the employment relationship.
• Group structure, roles, and team responsibilities are typically assigned immediately
before or after a group is formed.
• Finally, organizational structure and culture are usually the result of years of
development and change as the organization adapts to its environment and builds
up customs and norms.
Process
• Processes are actions that individuals, groups, and organizations engage in as a

result of inputs and that lead to certain outcomes.
• At the individual level, processes include emotions and moods, motivation,

perception, and decision making.
• At the group level, they include communication, leadership, power and politics,
and conflict and negotiation.
• Finally, at the organizational level, processes include human resource

management and change practices.
Outcomes
• Outcomes are the key variables that you want to explain or predict, and that are
affected by some other variables.
• What are the primary outcomes in OB?
• Individual level outcomes are like attitudes and satisfaction, task performance,
citizenship behavior, and withdrawal behavior.
• At the group level, cohesion and functioning are the dependent variables.
• Finally, at the organizational level we look at overall profitability and survival.

Autocratic Model
• Here the management is power oriented.
• The management uses the power and authority to get things done.
• Obviously the employees follow the orders as in such organizations the people live
on subsistence level.
• Hence the dependence on boss is very high here.
• What each employee should do, what should be the process etc. are all pre-
decided.
• The model draws its assumptions from Mc Gregor’s theory X.

Cont’d….
• It assumes that people are indolent and may not work unless compelled.
• The people try to avoid responsibility.
• Hence a close supervision is required in order that they perform to the expected
level.
• Due to unlimited application of authority over the people better performance is

achieved in such types of organizations only through fear, threats, punishments
and occasional rewards.
• It is also clear that the communication can be only downward or it is only one way.
Custodial Model
• In this model the capability and smartness of the organization in creating benefits
to the employees through the power of money is used.
• It also makes the employees organizational dependent because the employee

hopes for security.
• They need not depend on the boss here.
• Once the company is able to maintain them that itself will provide them security.
• They are also not given any authority to decide the benefits or rewards, though
they feel happy.
• This type of model is prevalent even now in family-managed business enterprises.

Cont’d….
• Here only the management will decide the benefits.
• Just like parents who decide what is best for their children so the management
decides what is best for the employees.
• In this money oriented OB model there can be only passive cooperation of people.
• The model may not be suitable where the employees are highly matured.
Supportive Model
• In this model the management wants to support the employees in all fields
wherever possible so that achievements of objectives are easier for them.
• The model also supports the view that OB depends on managerial leadership
rather than the use of money or power.
• The focus is getting shifted to participation and involvement of employees through

the mechanism of supportive control.
• The model draws its inferences from McGregor’s theory Y.
• The theory says that human beings give out their best if given a proper and equal
work environment.
Cont’d….
• In this model you find that the emphasis is not on economic resources but on
human aspects.
• You design the programme so that the managers can help the employees to
achieve their target or peak performance instead of controlling or supervising them.
• The supportive model works well only in developed countries with professional set-
up and sophisticated technology.
• Here the people are also well skilled and technically sound.
Collegial Model
• As the name indicates in this model the members work in a team with a team spirit
and try to share common goals.
• There is a high degree of understanding among the members who need not be
controlled or supervised.
• The employees feel the responsibility and they work for a common purpose.
• The very climate of the organization spreads itself for self-actualization and self-
fulfillment.
• Such people have high moral values and positive attitudes.
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Cont’d….
• Such members can execute even unplanned work also effectively because of their
behavioural flexibility.
• They only need an intellectual environment and freedom of job.
• Again you must note that the behaviour of the members in this model is
cooperative to achieve a common purpose.
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Why study OB?
Management is the process of working with and through others people to achieve
organizational objectives.
Studying OB enables us to:
• Understand and Explain organisational events. To know what, and why something happened
in order to determine if it was something to be prevented. Example: why did our valued
employees resign?
• Influence or Control of organisational events (come up with ideas and recommendations for
organisational action). Example: What can I do to make my subordinate to put out more
effort on his job?
• Predict organisational events. It seeks to determine what outcomes will result from a given
action. Example: How would my subordinates behave to the installation of a new computer?
Challenges and Opportunity for OB
• Responding to Globalization
• Managing Workforce Diversity
• Improving Quality and Productivity
• Responding to the Labor Shortage
• Improving Customer Service
Challenges and Opportunity for OB
(cont’d)
• Improving People Skills
• Empowering People
• Coping with “Temporariness”
• Stimulation Innovation and Change
• Helping Employees Balance Work/Life Conflicts
• Improving Ethical Behavior
Chapter Two
Foundations of Individual Behavior

Introduction
• Organizations are made up of individuals who are trying to combine their efforts for
mutual benefit.
• The better managers understand how and why individuals act the way they do the
better they can help these individuals work together efficiently and effectively.
• This has always been a valuable skill that some managers are better at than others.
• This chapter will explain the aspects of individual behavior like aptitude, ability,
personality, perception, attitude, learning and motivation on a micro scale.
• Since the behavior of an individual is dependent on these attributes, a working

knowledge of these aspects become very essential.
Aptitude and Ability
• Aptitude represents a person’s capability of learning something.
• Ability reflects a person’s existing capacity to perform the various tasks needed for
a given job and includes both relevant knowledge and skills.
• In other words, aptitudes are potential abilities, whereas abilities are the knowledge
and skills that an individual currently possesses.
• Aptitudes and abilities are important considerations for a manager when initially
hiring or selecting candidates for a job.
• Some of tests used to measure mental aptitudes and abilities provide an over all
intelligent quotient (IQ).
Cont’d….
• Others provide measures of more specific competencies that are required of

people entering various educational programs or career fields.
• Examples, GMAT or SAT college graduate entrance tests.
• Such tests are designed to facilitate the screening and selection of applicants for
educational programs or jobs.
• In addition to mental aptitudes and abilities, some jobs, such as fire fighters and
police, require tests for physical abilities.
• Muscular strength and cardiovascular endurance are two of many physical ability
dimensions.
Attitudes and Job Satisfaction
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Attitude
Attitudes
• Attitudes are evaluative statements–either favorable
or unfavorable-concerning objects, people, or events.
Attitudes are more specific than values.
• Attitude can be positive or negative.
• If a person has a high level of job satisfaction will
hold positive attitude toward the job.
Types of Attitudes
Attitudes, Consistency and Cognitive Dissonance
Consistency: Occurs when there is agreement between our

behavior and attitude
Individuals seek consistency.
Example: Praise someone for good performance.
Cognitive Dissonance: Occurs when there is inconsistency among
attitude, behavior, or cognition.
Example: Blame someone for good performance
Attitudes
• Attitude is a predisposition to respond in a positive or negative way to someone or

something in one’s environment.
• As a manager if you want to manage efficiently then you are expected to know in
advance the attitude of the subordinates and workers.
• Attitude do influence behavior of people and also their performance.
• Attitude puts an individual ready to respond to a situation favourably or

unfavourably to things in the environment.
• Though attitudes are invisible the resulting behaviour can be a measure of the
attitude.
What Are the Major Job Attitudes?
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Introduction
• Most of the research in OB has looked at three job

related attitudes: job satisfaction, job involvement,
and organizational commitment.
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Job Involvement
• An employee feels his performance level is important enough for his self worth.
• Develops a high psychological attachment to the job and takes maximum care of
the job thereby identifying himself with the job.
• This reduces the labour turnover and absenteeism.
• High levels of both job involvement and psychological empowerment are positively
related to organizational citizenship and job performance.
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Organizational Commitment
• An employee identifies himself with the organization, its goals, its vision and
mission.
• He is proud to be a member of the organization and would like to maintain and

protect it at any cost.
• Even temporary dissatisfaction in the job will not take him away from the main
stream of the organization as long as he is identifying himself with the organization.
• Because he is committed to the organization.
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Job Satisfaction
• The attitude any individual has towards the job is known as job satisfaction in the
positive sense.
• A high level of satisfaction indicates that he has a positive attitude towards the
job.
• A person dissatisfied with the job holds a negative attitude towards the job. OR…
• A person with a high level of job satisfaction holds positive feelings about his or
her job, while a person with a low level holds negative feelings.
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Measuring Job Satisfaction
• Our definition of job satisfaction—a positive feeling about a job resulting from an
evaluation of its characteristics.
• A job is more than just shuffling papers, writing programming code, waiting on
customers, or attending meetings.
• An employee’s assessment of his satisfaction with the job is thus a complex

summation of many discrete elements.
• Then, how, do we measure it?
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What Are the Main Causes of Job Dissatisfaction?
• On-the-job stress = 32%
• Pay = 26%
• Promotion = 21%
• Work = 15%
• Security = 14%
• Supervisor = 9%
• Co-worker = 3%
Source…..(L. Saad, “On-the-Job Stress in U.S. Workers’ Biggest Complaint,”

Gallup Poll (August 30, 2010)
The Impact of Satisfied and Dissatisfied
Employees on the Workplace
• What happens when employees like their jobs, and when they dislike their jobs?
• The exit–voice–loyalty–neglect framework—is helpful in understanding the

consequences of dissatisfaction.
• The model illustrates the four responses, which differ along two dimensions:
constructive/destructive and active/passive.
• The responses are as follows;
1. Exit:- Directs behavior toward leaving the organization, including looking for a new
position as well as resigning.
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The Model….
2. Voice:- Includes actively and constructively attempting to improve conditions,

including suggesting improvements, discussing problems with superiors, and
undertaking some forms of union activity.
3. Loyalty:- Passively but optimistically waiting for conditions to improve, including

speaking up for the organization in the face of external criticism and trusting the
organization and its management to “do the right thing.”
4. Neglect:-The neglect response passively allows conditions to worsen and includes

chronic absenteeism or lateness, reduced effort, and increased error rate.
The Exit-Voice-Neglect-Loyalty
Dissatisfaction Framework
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Personality and Values
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Personality
• Individuals are unique in terms of their skills, abilities, personalities, perceptions,

attitudes, values and ethics.
• Individual differences represent the essence of the challenge of management,

because no two individuals are completely similar.
• Managers face the challenge of working with people who possess a multitude of
individual characteristics, so the more managers understand individual differences,
the better they can work with others.
• Personality is not simply the external features of a man but includes his behaviour.
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Cont’d….
• Why are some people quiet and passive, while others are loud and aggressive?
• Are certain personality types better adapted than others for certain job types? Or
• You come across people who are good, bad, arrogant, aggressive, lovesome etc.
• Before we can answer these questions, we need to address a more basic one: i.e.
• What is personality?
Personality is a complex, multi-dimensional construct and there is no simple
definition of what personality is.
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Some Definitions …….Personality
✓ Combines a set of physical and mental characteristics that reflect how a person
looks, thinks, acts, and feels.
✓ Is the unique characteristic of a person being influenced by personal factors and

environmental factors.
✓ Is a relatively stable set of characteristics and tendencies that determine those
commonalities and differences in the psychological behavior (thoughts, feelings and
actions) of people that have continuity in time and that may not be understood easily
as a result of social and biological pressures of the moment.
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Cont’d…..
• The above definition tells that there is consistency in characteristics that account for
a relatively stable and consistent behaviour by man.
• It also tells that some of them are common with others while other traits set an
individual apart from others.
• What a manager of an organization must learn is that not all employees alike and
that each one is unique and may or may not respond to the stimuli like pay rise,
transfer, promotion or reprimands.
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What Determines Personality?
• Is personality inherited or genetically determined, or is it formed by experience?
• You may have heard someone say something like, “She acts like her mother.”
• Similarly, someone may argue that “Bob is the way he is because of the way he was
raised.”
• These two arguments illustrate the nature/nurture controversy.
• Is personality determined by heredity, that is, by genetic endowment, or

by one’s environment?
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Cont’d…
• The personality formation of an individual starts at birth and continues

throughout his life.
• However, for the purpose of analysis, these can be classified into four broad
categories
1) Biological,
2) Family and Social,
3) Cultural and
4) Situational.
1. Biological
• The general biological characteristics of human biological system influence the way
in which human being tends to sense external event data interpret, and respond to
them.
• The study of the biological contribution to personality can be divided into two major
categories:
A. Heredity,
B. Physical Stature.
A. Heredity
• Heredity is transmission of the qualities from ancestors to descendants through a

mechanism lying primarily in the chromosomes of the Germ cells.
• That means so many traits are genetically donated to the child.
• Then you say that father looks like son and son looks like father.
• Heredity predisposes to certain physical, mental, and emotional states.
• Even two brothers may have different personality traits.
• The traits can be hair, color, eyes, eye color, height, attractiveness etc.
B. Physical Features
• An individual’s external appearance, which is biologically determined, is an

important ingredient of personality.
• In a narrow sense, personality is also referred to physical features of a person.
• A person’s physical features have some influence on his personality because he will
affect influence on others and in turn, will affect his self-concept.
• Similarly, the rate of maturation also affects personality because persons of varying
maturity are exposed to different physical and social situations and activities
differently.
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3. Culture
• When an individual is born in a particular culture, he is brought up in the value

system, beliefs, norms, rules and regulations, etc. prevalent in that culture and
acceptable to the other members of that culture.
• Each culture expects and trains its members to behave in the ways that are
acceptable to the group.
• It generally determines attitudes towards independence, aggression, competition,

and cooperation.
Cont’d…..
• Thus, culture is a complex of these beliefs, customs and values that are shared
among them.
• Members often comply with the rules/norms of the culture.
• Culture thus is the underlying determinant of human decision-making.
• Despite the importance of cultural contribution to the personality, a linear

relationship cannot be established between personality and a given culture.
4. Situation
• Life is nothing but a collection of experiences.
• Each individual has different experiences and faces unique events and all these
determine his personality in the days ahead.
• For example, a worker whose personality history suggests that he had need of
power and achievement, may become frustrated and react apathetically if he is put
in a bureaucratized work situation.
• Thus, he may appear lazy and trouble maker though his personality history may
suggest that he is very hard working and striving to get ahead.
• Thus, because of changed situation his personality composition changes.

Types of Personality
1. Type A and Type B Personality
• Type A Personality
• These people have high standards of performance with obsessive behavior and
hence have poor interpersonal relations.
• Characteristics of TYPE A personality.
▪ They are achievement oriented
▪ They are competitive having initiative and drive
▪ They cannot accept slowdown in work for any reason
▪ They create stress for themselves and for others.

Cont’d…..
▪ They feel pressurized whenever they want to complete a task before deadline.
▪ Due to urgency of time they walk and eat fast
▪ Does several things at a time.
▪ They want more and more things to be done in less and less time
▪ They always start the next work without completing the first work
▪ They do not relax nor enjoy the life.
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Type B Personality
• Some of the characteristics of TYPE B

▪ They feel no pressure at all, still
personality are as follows.
hardworking
✓ They feel no urgency of time ▪ They do one at a time and slowly
✓ They have no competitive drive complete the work before going to
✓ They are easy going the next work
✓ They are relaxed, sociable and have a ▪ They do not put any extra effort to
balanced outlook on life meet deadline

▪ They are happy not prone to stress
✓ They take a lot more time to complete a
related problems
work compared to type A.
2. Introvert and Extrovert Personalities
• Introvert Personalities
✓ Introverts prefer loneliness.
✓ They feel shy to express themselves and also are not good communicators.
✓ The introvert is behaviorally described as quite, introspective, intellectual, well

ordered, emotionally un expressive and value oriented, prefers small group of
intimate friends and plans well ahead.
✓ Introverts are guided by their own ideas and philosophy.
✓ They are rigid and less flexible.
✓ By themselves they will not open a dialogue with others.

Extrovert Personalities
• Extroverts are on the contrary sociable, optimistic and love companionship.
• They are friendly and enjoy dialogues with others.
• Extrovert is sociable, lovely, impulsive, seeking novelty and change, care free and
emotionally.
• A manager has to be an extrovert;
✓ As he has to exercise authority, command and lead.
• An introvert :
✓ To work in an office free of interference.

3. Personality Based on Locus of Control
• This type of people is always in a state either in control of the situation or events or
the situation or events control them.
• Those who believe that they control the events and shape their destiny are
supposed to have internal locus of control, and
• External locus of control. Are those who believe that events occur only by chance
or due to factors beyond their control.
• Those in “internal locus of control “ seek opportunities for advancement in life

and are confident of their abilities and judgment at work.
Cont’d….
• Those in “External locus of control” remains inactive and sometimes lazy allowing
events to overpower them.
• Research has established that people having internal control occupy high
positions and expects rewards for achievements.
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4. Machiavellianism
• This personality trait wherein people manipulate others for their personal gains.
• They have high self-confidence and self-esteem.
• They are so calculative that they exploit the situation and the people to achieve their
goals.
• Often they follow unethical means to meet their goals.
• They are very intelligent to approach a situation and that too very thoughtfully.
• These personalities are skilful enough in influencing others for their selfish
advantage.
Cont’d…..
• They are very logical in analyzing situations and will not hesitate to tell lies to tackle
a situation in their favour.
• They cannot be allured by friendship, trust or loyalty.
• They normally twist facts to control others, events or situations.
• In other words manipulation is their motto.

5. Bureaucratic Personality
• These people are highly law-abiding.
• They believe in bureaucracy in the sense that they care too much for rules and
regulations.
• A bureaucrat believes in subordination, orderly processes in organization and in

impersonal and formal relationship.
• They do not take any risks. Nor they are innovative.
• They believe in giving instructions as per rules
• For routine and repetitive work, which is, proceduralized bureaucratic managers are
better.
What is Perception?
Perception…..
• What is real?
• How do you define real?
• If you’re talking about what you can feel, what you can smell, what you can
taste and see, then real is simply electrical signals interpreted by your brain.
• This is the world that you know.

Definitions…
• Perception is the process through which the information from outside environment
is selected, received, organized and interpreted to make it meaningful to you.
• Perception is also referred as an intellectual process by which a person acquires

information from the environment, organizes the same and obtain a meaning from
it.
• It involves deciding which information to notice, how to categorize this information

and how to interpret it within the framework of existing knowledge.
• A process by which individuals organize and interpret their sensory impressions in

order to give meaning to their environment.
Cont’d…..
• We are forming a meaningful picture of the world within our self based on the
information input from the environment.
• It is this input of meaningful information that results in decisions and actions.
• perception is a complex interaction of senses like feeling, seeing, hearing, thinking

and comparing with known aspects of life so as to make some sense of the world
around.
• But the quality of action and decision by a person depends on the quality of
perception.
“ WE DON’T SEE THINGS AS THEY ARE, WE SEE THINGS AS WE ARE.”

The Importance of Perception
• Manager is primarily concerned with the achievement of organizational objectives
via the specified behaviour of its employees.
• Perception affects the outcome of behaviour, because people act on the basis of
what they see and perceive.
• Thus while understanding human behaviour managers have to keep in mind that;
• Things, which are not perceived to be meaningful by workers, will not influence their
behaviour and
• Things that are perceived to be meaningful by workers will influence their behaviour
even though the perceptions can be wrong.
Cont’d…..
• In an organizational setting it is necessary that you understand the human

perception first before trying to understand the human behaviour.
• There are many activities in an organization and each is influenced by perception.
• To measure the perceptual accuracy you must pay special attention to three areas.
1) Interpersonal Working Relationship,
2) Selection of Employees and
3) Performance Appraisal.
Cont’d…..
• 1.Interpersonal Relationship means bringing about integrated behaviour in an

organization.
• Managers must know whether or not the employees are sharing the same
perceptions or similar perceptions or at least compatible perceptions.
• If not the organizational problems are greater, and will call for greater efforts on the
part of management to make things compatible.
• Moreover misperceptions increase distorted relations and conflicts.

Cont’d……
• 2) Selection of Employees by managers purely depends on the
perceptions managers have about the recruits in the absence of full
information on them.
• 3) Accuracy of Performance Appraisal by managers is well
influenced by manager’s perception about their subordinates.

Improving Perceptual Accuracy….
1) Increasing self awareness of employees so that one perceives oneself accurately,

then he can perceive others accurately.
2) Enhancing the self-concept so as to improver their self competency
3) Managers must also develop positive attitude in all matters as attitude has
influence on perception.
4) Effective and adequate communication
5) All perceptual distortions should be avoided such as; stereotyping and first
impression etc.
The Perceptual Process
1. Sensation 3.Organization
– An individual’s ability to detect – The process of placing selected
stimuli in the immediate perceptual stimuli into a framework
environment. for “storage.”
2. Selection 4.Translation
– The process a person uses to – The stage of the perceptual process at
eliminate some of the stimuli that which stimuli are interpreted and given
have been sensed and to retain meaning.
others for further processing.
Factors Influencing Perception
Factors In The Perceiver

• Attitudes
• Motives
• Interests
• Experience
• Expectations
Factors In The Situation
• Time
• Work Setting Perception
• Social Setting
Factors in the Target

• Novelty
• Motion
• Sounds
• Size
• Background
• Proximity
• Similarity
1. Characteristics of the Perceiver
• An individual’s habits, past experience, ethics, needs, values, attitudes and

personality can very well affect the perception process.
• For example; people who are less secured find fault with others and secured men
see others warm and friendly.
• Our cultural upbringing, values and ethics play an important role in our perception
about others.
• Normally it is not possible to judge the personality of another person brought up in

a different culture, because our judgment is based on our culture and values.
Cont’d……
• Once you do not like a person then you always look for the negative aspects of the
person.
• Some times our attitude creates a wrong perception in the minds of people who are
daily associated with us.
• For example persons who accept themselves may easily accept others and have
faith in others and perceive everything favourably.
• These self accepted individuals perceive themselves as being accepted by others,

wanted by others and liked by others.
2. Characteristics of the Perceived
• The physical characteristics (Age, appearance, facial expressions, gender,

communication style and personality) of others influence our perception about others.
• The communication of others, verbal as well as non-verbal affect our perception about
others.
• The vocabulary and the language used can create an impression about them and ,
their education.
• The sitting posture, movement of their eyes and the depth of the smile can reflect the
confidence and outgoing nature of the individuals.
3. Characteristics of the Situation
• There are different situations or events either in society or in an organization.
• These can influence your perceptions.
• For example, thus if you meet some unknown person along with your managing
director about whom you have a very good impression,
• Then you will perceive the person also to a man of high regards.
• In such a situation you will form a nice image of the person in your mind.
• This favorable image will be erased when on the contrary you see the person with a
notorious person and in that situation you may have a bad perception about the
stranger, Even the location of an event can change our perception.
Perceptual Organization
• It is the process by which we group outside stimuli into recognizable and

identifiable patterns and whole objects.
• Certain factors are considered to be important contributors on assembling,

organizing and categorizing information in the human brain.
• These are:
1) Figure ground Illustration and
2) Perceptual grouping
1. Figure-Ground Illustration
– The tendency to distinguish
and focus on a stimulus that
is classified as figure as
opposed to background.
2. Perceptual Grouping
• Our tendency to group several individual stimuli into a meaningful and recognizable
pattern.
• It is very basic in nature and largely it seems to be inborn.
• Some factors underlying grouping are
- Connectedness
- Closure
- Proximity
- Similarity
Cont’d…….
Shortcuts in Judging Others
• Selective Perception: People selectively interpret what they see on the basis of their
interests, background, experience and attitudes.
• Halo Effect: Drawing a general impressions about an individual on the basis of a

single characteristics.
• Contrast Effect: Evaluation of a person’s characteristics that are effected by

comparisons with other people recently encountered who rank higher or lower on the
same characteristics.
• Projection: Attributing one's own characteristics to other people.
• Stereotyping: Judging someone on the basis of one’s perception of the group to which
Enjoy Your Day!!!
Decision Making
(DM)
Definitions
• The process of responding to a problem by searching for and selecting a solution

or course of action that will create value for organizational stakeholders.
• It’s the process of identifying and solving problems.
• Problem Identification: Information about environmental and organizational

conditions is monitored to determine if performance is satisfactory and to diagnose
the cause of shortcomings.
• Problem Solution: When alternative courses of action are considered and one
alternative is selected and implemented.
Why study decision making?
• People in any organizations make choices about limited resources;
– Inputs (where to raise capital, who to employ, Where and how to find RM)
– Transformation (how to make a product)
– Outputs (what quality level to achieved, what price to charge)
• These choices affect the value added (if any) and the success of the organization.
• Significant available choices are usually not clearly understood or expressed,

ambiguous and shaped by subjective interpretations.
Decision Making in Today’s Environment
Decision Making Process
1. ANALYZE THE SITUATION
• What are the key elements in the situation?
• What constraints affect the decision?
• What resources are available?
2. SET OBJECTIVES
• Is the problem stated clearly?
• Do people understand what they will work on?
• By what criteria will decision making be judged?

Cont’d…..
3.SEARCH FOR ALTERNATIVES
• Do people involved in the problem make the decision?
• Have they sought complete information?
• Do those with information make the decision?
• Do they use diversity to generate ideas?
• Are all ideas encouraged?
4. EVALUATE THE ALTERNATIVES
• Do participants know that they are evaluating?
• Are criteria for assessment clear and understood?
• Are differences of opinion included in evaluation?

Cont’d….
5. MAKE THE DECISION
• Do employees know that they are making the decision?
• Are they aware if they are satisficing or optimizing?
• Do action plans fit with the decision?
• Are they committed to the decision?
6. EVALUATE THE DECISION
• Are responsibilities for data collection, analysis, and reporting clear?
• Is there a comprehensive evaluation plan?

Models of Decision-Making
Rational Model
Effective Decision
A timely decision that meets a desired

objective and is acceptable to those Bounded Rationality
Model
individuals affected by it.
Garbage Can Model

1. Rational Decision Making Model
• Systematic analysis of a problem
• Suggests how managers should try to make decisions in order to reach the optimal
solution.
When is it used?
– Sufficient time
– Sufficient information
– Dealing with well-understood issues
– Facing little competition

Cont’d…..
• The rational model: decision making is a straightforward, three-stage process.
• Underlying assumptions
– Decision makers have all the information they need
– Decision makers can make the best decision
– Decision makers agree about what needs to be done
112
2. Bounded Rationality Model
• Recognizes the limitations of our decision-making ability
– Limited time, information, uncertainty
• We are bounded by the enormous complexity of many problems.
When is it used?
• Applies mostly to non-programmed decisions
• Limited time, resources to deal with complex, multidimensional issues

3. Garbage Can
• Is a view of decision making that takes the unstructured process to the extreme.
• Decision makers are as likely to start decision making from the solution side as the problem
side
• Create decision-making opportunities that they can solve with ready-made solutions based on
their competencies and skills.
• Decision making becomes a “garbage can” in which problems, solutions, and people all mix
and contend for organizational action.
• Selection of an alternative depends on which person’s or group’s definition of the current

situation holds away.
Cont’d…..
• Decisions require (PPS)
1) Participants
2) Problems
3) Solutions.
• To produce a decision, they need to come together in a ‘choice opportunity’ – for

example, a meeting.
• PPS are independent, and decisions get taken only when all three come together
(even if randomly) in the ‘garbage can’ (a meeting).
Cont’d….
• Not a sequence of Solutions

steps that begins with Problems Choice
a problem and ends Participants
opportunities
with a solution
• Problems randomly Organization

attach to solutions in
the “Garbage Can”
4. The Intuitive Model
• In Intuition model, which professionals use to make decisions, has been defined in
terms of several conceptualizations:
a) As a personality trait,
b) As an unconscious process, as opposed to analysis, which is assumed to occur

separately on the conscious level,
c) As a set of actions that the decision maker chooses to employ and
d) As a function of experience from having made many similar decisions.

Types of Decisions
Organizational decisions can be categorized based on their complexity…
1. Programmed Decisions
Repetitive and well defined, and procedures exist for resolving the problem.
2. Non-Programmed Decisions
Novel, iand poorly defined, and no procedure exists for solving the problem.
Chapter Three:
Motivation
What Is Motivation?
• The processes that account for an individual’s intensity, direction, and persistence
of effort toward attaining a goal – specifically, an organizational goal.
• Three key elements:
❑Intensity – how hard a person tries.
❑Direction – effort that is channelled toward, and consistent with, organizational

goals.
❑Persistence – how long a person can maintain effort.
• Motivation works best when individual needs are compatible with organizational
goals.
Bottom Line
❖ Motivation is accomplishing things

through the efforts of others.
❖ If you cannot do this, you will fail as a

manager.
• Misconceptions about Motivation
*Current generation has no work ethic
* Some people are born “lazy”
* Most people are motivated by the same

thing
Why Motivation?
1) The employee who is motivated works far better than

others and in results too.
2) Motivation reduces absenteeism and labor turn over.
3) Absence of resistance to change is an important hallmark

of motivation.
4) Motivated employees can provide competitive advantage

by offering suggestions & working to satisfy customers
5) Motivation is a key to understanding many forms of

behavior in organizations.
Early Theories of Motivation
1. Maslow’s Hierarchy of Needs Theory
❖ Needs were categorized as five levels of lower- to higher-order needs.
– Individuals must satisfy lower-order needs before they can satisfy higher order
needs.
– Satisfied needs will no longer motivate.
– Motivating a person depends on knowing at what level that person is on the

hierarchy.
❖ Hierarchy of needs
– Lower-order (external): physiological, safety needs.
– Higher-order (internal): social, esteem, self-actualization needs.

Fig3.1.Maslow’s Hierarchy of Needs
Self-Actualization
Esteem
Upper Social
Safety
Lower
Psychological
Cont’d….
Assumptions
1) Man is a wanting animal; as soon as one of his needs is satisfied, another appears
in its place. This process is unending. It continues from birth to death.
2) Human needs are arranged in the form of hierarchy, starting in ascending order
from the lowest to the highest and when one set of needs is satisfied, this kind of
need ceases to be motivator.
3) A satisfied need is no more motivator.
4) It assumed that the means for satisfying human needs can be provided or withheld
by management.
Cont’d……Hierarchy of Needs
1) Physiological Needs: - These are the basic needs for sustaining human life itself.
✓ Once satisfied cease to operate as primary motivators of behavior and are replaced by
motivational forces of a higher order.
✓ Examples include food, water, shelter, sleep, sexual satisfaction, etc. satisfaction of these
needs is for the preservation of life, and in most industrial economic systems, and these
needs are satisfied relatively easily.
2) Safety Needs: - This category includes the desire for psychological and need for
physical security.
✓ Example; factors such as clothing, shelter, and protection from attack contribute to physical
safety- the need to be free from physical danger, and economic security.
Cont’d……Hierarchy of Needs
3) Social Needs (affiliation or acceptance needs)

✓ Need for affection and love is the best described as the need to belong and not only as a wanted
member of a family unit but also as a member of other relatively small groups.
✓ Since people are social beings, they need to belong, to be accepted by bothers; needs for
friendship, love and, belongingness.
4) Esteem Needs
✓ They are needs for self –respect, a sense of personal achievement, and recognition from others.
5) Self-Actualization Needs
✓ These are needs for personal growth, self–fulfillment and the realization of a person’s full
potential.
Opportunities for Satisfaction in Maslow’s Hierarchy of
Human Needs.
2. McGregor’s Theory X and Theory Y
✓ Two distinct views of human beings: Theory X (basically negative) and Theory Y
(positive) view towards employees.
➢ Theory X
• Assumes that workers have little ambition, dislike work, avoid responsibility, and require close
supervision.
➢ Theory Y
• Assumes that workers can exercise self-direction, desire responsibility, and like to work.
❖ Assumption:
❖ Motivation is maximized by participative decision making, interesting jobs, and good group relations.
Theory X……
• People basically dislike work and avoid it whenever possible
• Because most people dislike work, they have to be closely supervised &threatened
with punishment
• Most people prefer to be told what to do, have little ambition, want to avoid
responsibility& want security above all else
• Most people have little creativity; they are not capable of solving problems. Rather,
they must be directed.
• Most people have limited intellectual potential.
• Contribution above basic performance should not be expected.

Theory Y…….
 Most people find work as natural as play or rest and develop an attitude toward it based on
their experience with it.
 People do not need to be threatened with punishment; they will work voluntarily towards
organizational objectives to which they are committed.
 The average person working in an environment with good human relations will accept and
seek responsibility.
 Most people possess a high degree of imagination and creativity with which to solve
organizational problems.
• Although people have intellectual potential, modern industrial life utilizes only part of it.
3. Herzberg’s Two Factor Theory
➢ Frederick Herzberg approached the question of motivation in a different way.
➢ Job satisfaction and job dissatisfaction are created by different factors.
1. Hygiene Factors: Extrinsic (environmental) factors that create job dissatisfaction.
✓ Salary, job security, working conditions, status, company policies, quality of

technical supervision and quality of interpersonal relationships among peers,
supervisors and subordinates are the primary elements involved in job
dissatisfaction.
✓ When present in sufficient quality, they have no effect; when absent, they can
lead to job dissatisfaction.
Cont’d….
2. Motivators: Intrinsic (psychological) factors that create job

satisfaction.
✓Achievement, recognition, responsibility, advancement, the work

it-self, and possibility of growth) are the primary element involved
in job satisfaction.
✓When presents, they can stimulate personal and psychological

growth.
Herzberg’s Two-Factor Theory.
Contemporary Theory of Motivation
1. Need Theory of Motivation
• Developed by David McClelland.
• A person is motivated when he or she has not yet attained certain level levels of
needs with his or her life.
• A satisfied need is not a motivator.
• There are various needs theories, which differ regarding what those levels and
when satisfaction is actually reached.
• As the term suggests, need theory focuses on what people require to live fulfilling
lives.
• In practice, needs theory deals with the part work plays in meeting such needs.
Need Theory…..Cont’d
2. Goal-Setting Theory
• Developed by Edwin Locke.
• Proposes that setting goals that are accepted, specific, and challenging yet
achievable will result in higher performance than having no or easy goals.
• Properly set and well-managed task goals can be highly motivating.
• Motivational effects of task goals:

✓ Provide direction to people in their work.
✓ Clarify performance expectations.
✓ Establish a frame of reference for feedback.
✓ Provide a foundation for behavioral self-management.

Goal Setting Theory….Cont’d…
➢Key issues and principles in the goal-setting process:

– Set specific goals.
– Set challenging goals.
– Build goal acceptance and commitment.
– Clarify goal priorities.
– Provide feedback on goal accomplishment.
– Reward goal accomplishment.

3. Reinforcement Theory of Motivation
• Developed by B.F. Skinner
• Is an approach to motivation based on the ‘” law of effect”.
• Behavior with positive consequences tends to be repeated, and
• Behavior with negative consequences tends not to be repeated.
• Is also called Operant conditioning.

Operant Conditioning Strategies
1) Positive Reinforcement: Refers the use of positive consequences to encourage

desirable behavior.
2) Avoidance Learning: Learning that occurs when individuals change behavior to

avoid or escape unpleasant circumstances.
3) Extinction: The absence of reinforcement for undesirable behavior so that the

behavior eventually stops recurring.
4) Punishment: The application of negative consequences to stop or correct improper

behavior.
Applying reinforcement strategies: case of total quality management.
Guidelines for using positive reinforcement
– Clearly identify desired work behaviors.
– Maintain a diverse inventory of rewards.
– Inform everyone about what must be done to get rewards.
– Recognize individual differences when allocating rewards.
– Follow the laws of immediate and contingent reinforcement.

4. Equity Theory of Motivation
– Developed by J. Stacy Adams.
– When people believe that they have been treated unfairly in

comparison to others, they try to eliminate the discomfort and
restore a perceived sense of equity to the situation.
• Perceived inequity.
• Perceived equity.
Equity Theory’s …..Cont’d
• There are four different situations:

– Self-Inside
• The person’s experience in a different job in the same organization
– Self-Outside
• The person’s experience in a different job in a different organization
– Other-Inside
• Another individual or group within the organization
– Other-Outside
• Another individual or group outside of the organization
Cont’d…
Managerial Implications of Equity Theory
– Underpaid people experience anger.
– Overpaid people experience guilt.
– Perceptions of rewards determine motivational outcomes.
– Negative consequences of equity comparisons should be minimized, if not

eliminated.
– Do not underestimate the impact of pay as a source of equity controversies in the

workplace.
• Gender equity.
• Comparable worth.
5. Expectancy Theory
• Developed by Victor Vroom.
• People choose how to behave from among alternative course of action, based on their expectations
of what there is to gain from each action.
➢ Assumptions
✓ Behavior is determined by a combination of individual and environmental factors.
✓ Individuals make conscious decisions about their behavior in the organization.
✓ Individuals have different needs, desires, and goals.
✓ Individuals decide between alternative behaviors on the basis of their expectations that a given
behavior will lead to a desired outcome.

Expectancy…. Key Expectancy Theory Variables
I. Expectancy — Belief that working hard will result in desired level of performance.
II. Instrumentality — Belief that successful performance will be followed by rewards.
III. Valence — Value a person assigns to rewards and other work related outcomes.
Expectancy….Cont’d…..
– Motivation (M), expectancy (E), instrumentality (I), and valence (V)

are related to one another in a multiplicative fashion:
M=ExIxV
– If either E, I, or V is low, motivation will be low.

Managerial Implications of Expectancy Theory
From Theory to Practice: Guidelines for Motivating
Employees
• Use goals • Check the system for equity
• Ensure that goals are • Use recognition

perceived as attainable • Show care and concern for employees
• Individualize rewards • Don’t ignore money
• Link rewards to performance
Chapter Four:
Communication and
Organizational Behavior
Introduction
❖ Communication refers to all the ways we communicate.
❖ The communication includes both verbal and nonverbal messages.
❖ Communication is a learned skill.
❖ Most people are born with the physical ability to talk, but we must learn to
speak well and communicate effectively.
❖ Speaking, listening and our ability to understand verbal and nonverbal

meanings are skills we develop in various ways.
4/14/2024 156 Abraham A/ASU-MBA

Cont’d….
❖ Some communication skills are taught directly through education and through
practicing those skills.
❖ Poor communication is probably the most frequently cited source of

interpersonal conflict. Because,
❖ Individuals spend nearly 70 percent of their waking hours in communicating

through writing, reading, speaking, listening.
❖ Good communication skills are critical to individual career and organizational

success.

Cont’d….
❖ No individual, group, or organization can exist without sharing

meaning/information among its members.
❖ It is estimated that 75% of a person’s day is spent communicating in

some way.
❖ A majority of our communication time may be spent speaking and

listening, while a minority of that time is spent reading and writing.

Meaning and Definition
❖ The word Communication is derived from a Latin word “cummunicare” which

means “to share”.
❖ Therefore, the word communication means sharing of ideas, messages and words
expressed through a language.
❖ Communication starts with a sender, who has a message to send to the receiver.
❖ The communication process is complete once the receiver has understood the
message of the sender.

Cont’d….
❖ Communication is the means by which people are linked together in an

organization to achieve a common purpose.
❖ Communication is the broad field of human interchange of facts and opinions and
not the technologies of telephone, radio and the like.
❖ Communication is the transfer of information from a sender to a receiver with the

information being understood by the receiver.

Functions of Communication
➢ Connect employees in the organization to reach mutual goals.

➢ To make effective decisions
➢ It Helps to Cope with Environment
❖ To give and receive information
❖ To provide advice
❖ To educate and train customer
❖ To issue orders and instruction
❖ To receive suggestion
❖ To motivate and to integrate
❖ To control member behavior in several ways

The Communication Process
❖ Communication is the process of passing information and understanding from

one person to another.
❖ The communication process is a system that involves an interrelated,

interdependent group of elements working together as a whole to achieve a
desired outcome or goal.
❖ Whether you are speaking, writing, listening or reading, communication is more

than a single act.

Cont’d…
❖ Elements of the Communication Process
1. The sender has an idea………… (Source)
2. The idea become a message………..(Encoding)
3. The message is transmitted ………….(Channel)
4. The receiver get the message………... (Decoding)
5. The feedback process

The communication process

The Process…..
1. Source: Communication begins with the sender, who has a thought

or an idea which is then encoded in a way that can be understood
by both sender and the receiver.
▪ As the source of the message, you need to be clear about why

you're communicating, and what you want to communicate.
▪ The sender is the source of the message.

The process
2. Message: it is the information which is being communicated.
❖ In short the message is the information that you want to

communicate.
3. Encoding. This is the process of transferring the information you

want to communicate into a form that can be sent.

Cont’d….
4. Channel: The information is transmitted over a channel that links

the sender with the receiver.
❖ Messages are conveyed through channels, with verbal including

face-to-face meetings, telephone and videoconferencing; and
written including letters, emails, memos and reports.
5.Decoding: The receiver translates the words or symbols into a

concept or information that he or she can understand this is called
decoding.

Cont’d….
6. Receiver: Accurate communication can occur only when both the

sender and the receiver attach the same or at least similar meanings to
the symbols that compose the message. Your message is delivered to
individual members of your audience.
7. Feedback: It’s a verbal and nonverbal reactions of the receiver to

your communicated message.

Con’d….
8)Context: The situation in which your message is delivered is the

context.
❖ It includes the tone of voice, the look in the sender's eye's, body
language, hand gestures, state of emotions (anger, fear, uncertainty,
confidence, etc.) that can be detected and the surrounding
environment or broader culture (i.e. corporate culture, international
cultures, etc.).

Barriers of Communication
❖ Considering the complex nature of the communication process your

messages may not always be received exactly as you intended.
❖ Its anything that prevents understanding of the message is a barrier

to communication.
❖ Barriers can exist in the sender, in the transmission of the message,

in the receiver, or in the feedback.

Types of Barriers to Communication
1. Culture, background, and bias: We allow our past experiences to

change the meaning of the message.
❖ Our culture, background, and bias can be good as they allow us use our
past experiences to understand something new, it is when they change
the meaning of the message then they interfere with the communication
process.

Cont’d….
2. Noise - Equipment or environmental noise impede clear

communication.
❖ The sender and the receiver must both be able to concentrate on the
messages being sent to each other.
3. Ourselves: Some of the factors that cause this are defensiveness (we
feel someone is attacking us), superiority (we feel we know more that
the other), and ego (we feel we are the center of the activity).

Cont’d…
4. Perception: If we feel the person is talking too fast, not fluently,

does not articulate clearly, etc., we may dismiss the person.
❖ Also our preconceived attitudes affect our ability to listen.
❖ We listen uncritically to persons of high status and dismiss those of

low status.

Cont’d…
5. Message: Distractions happen when we focus on the facts rather than

the idea.
❖ Semantic distractions occur when a word is used differently than you

prefer.
❖ For example, the word chairman instead of chairperson may cause you
to focus on the word and not the message.

Cont’d….
6. Environmental: Bright lights, an attractive person, unusual sights, or

any other stimulus provides a potential distraction.
7. Loss of retention. It is said that people remember:
❖ 10 % of what they read
❖ 20 % of what they hear
❖ 30 % of what they see
❖ 50 % of what they see and hear
❖ 70 % of what they say and
❖ 90 % of what they say as they perform the task.

Guidelines to Overcome Barriers to
Communication
❖ Feedback - enables communication to become a two way process with both the
sender and the receiver trying to achieve mutual understanding
❖ Consider the words used - long complicated sentences and unfamiliar words confuse
people. Communication should be clear, complete, concise, concrete, correct and
courteous.
❖ Use repetition - repeating messages several time using different examples can help
others to understand the messages being sent.

Cont’d…
❖ Use empathy - seeing a situation from another person's viewpoint and

trying to understand others opinions concerns and attitudes makes better
communicators
❖ Timing - poor timing can result in messages not being received effectively
❖ Being positive rather than negative helps make communication more

effective - what is wanted not what isn't wanted

Cont’ d…..
❖ Select the best location - talk somewhere that will encourage open
communication not a noisy shop floor or a busy office
❖ Check written communication for spelling errors and ensure the

sentences are clear, concise and not ambiguous.

Group Behavior
and
Team Works
Introduction
 Groups exist in any organization.
 Groups affect the behavior of individuals as well as that of other groups.
 Finally they affect the organization as a whole.
 Groups are created by organization to achieve the organizational goals.
 Organization members also create their own groups for their own satisfaction.
Abraham A/ASU/2010
What is a group and Team?
 A group is a two or more individual who interact regularly with each other to
accomplish a common purpose or goal. Or
 Two or more persons independent and interacting who came together to achieve
a particular objective“
 A team is a small number of people with complementary skills who are

committed to a common purpose, performance goals, and approach for which
they are mutually accountable.
 Teams differ from other types of groups in that members are focused on a joint
goal. Abraham A/ASU/2010
Types of Groups in Organization
1. Functional or Formal Groups:

▪ Formed by the organization to accomplish different organizational goals.
▪ Permanent in nature
▪ They have to follow rules, regulations and policy of the organization.
2. Informal Groups;
◼ formed for the purposes other than the organizational goals.
◼ Formed when individuals are drawn together by friendship, by mutual interests or both.
◼ These groups are spontaneous.

Abraham A/ASU/2010
Types of Informal group
I. Interest group: Employees coming together for payment of bonus, increase in

salary, and other facilities are the examples of interest groups
II. Membership group: Membership groups are the groups of individuals' belonging
to the same profession and knowing each other. For example, teachers of the same
faculty in a university.
III. Friendship group: Are groups of individuals belonging to same age group, having
similar views, and opinions.
IV. Reference group: Reference groups are the group where individuals shape their
ideas, beliefs, values etc. They want support from the group. Abraham A/ASU/2010
Cont’d…Types of Groups
3. Task Group
 Tasks groups are the groups formed by an organization to accomplish a narrow

range of purposes within a specified time.
 These groups are temporary in nature.
 They develop a solution to a problem.
 The organization after specifying a group membership, assigns a narrow set of

purposes such as developing a new product, evaluating a proposed grievance
procedure, etc.
Abraham A/ASU/2010
Stages of Group Development
1. Forming Stage
 The group comes together for the first time.
 The members may already know each other or they may be total strangers.
 This is the beginning point in the life of a group and is typically characterized by
a great deal of uncertainty, or even anxiety, on the part of group members.
 First, they are trying to get to know each other. Often this can be accomplished
by finding some common ground.
 Members also begin to explore group boundaries to determine what will be

considered acceptable behavior. Abraham A/ASU/2010
2. Storming Stage
 Group members begin to explore their power and influence.
 Stake out their territory by differentiating themselves from the other group
members rather than seeking common ground.
 Group members become defensive, competitive, or jealous.
 They may even take sides or begin to form cliques within the group.
 Questioning and resisting direction from the leader is also quite common.
Abraham A/ASU/2010
3. Norming Stage
 At this stage group members are much more committed to each other and the
group’s goal.
 Finding themselves more cohesive and
 The group tends to make big decisions.
 The group is more open and respectful toward each other, and members ask
each other for both help and feedback.
 They may even begin to form friendships and share more personal information
with each other.
Abraham A/ASU/2010
4. Performing Stage
 The structure at this point of fourth stage to fully functional and accepted group
energy has moved from getting to know and understand each other to
performing the task at hand.
 Galvanized by a sense of shared vision and a feeling of unity, the group is ready
to go into high gear.
 Members are more interdependent, individuality and differences are respected,

and group members feel themselves to be part of a greater entity.
 By now, the group has matured, becoming more competent, autonomous, and
insightful. Abraham A/ASU/2010
5. Adjourning Stage
 Just as groups form, so do they end.
 For those who like routine and bond closely with fellow group members, this
transition can be particularly challenging.
 Group leaders and members alike should be sensitive to handling these endings
respectfully.
 An ideal way to close a group is to set aside time to debrief…How did it all go?
What did we learn?, acknowledge each other, and celebrate a job well done.
Abraham A/ASU/2010
Positive Influence of a Formal Group
 It accomplishes tasks that cannot be done by individuals.
 The multi various skills required for the performance of a complex and difficult
job is available with a group.
 Helps to promote and implement policies and procedures.
 An individual learns and gains new technical skills and the exact functioning of
the organization from the group mainly.
 Enables individuals to satisfy their personal needs as well as social acceptances

and affiliation needs.
Abraham A/ASU/2010
Group Behavior
 There is no single reason why individual join groups and many groups are
formed.
 May be you feel that “united we stand, divided we fall “or “union is strength” It
may be a matter of security, self-esteem or affiliation.
 It can also be to share the work load of life.
 It could be to increase the voice power of the individual.
 Thus, individual can influence groups and in turn groups can influence
organizations or associations.
Abraham A/ASU/2010
Cont’d…
 In the process leaders are born and some working and even behavioral norms
are born.
 Automatically for leaders and followers to survive interpersonal relations and

communications becomes a tool for survival.
 This makes the managers to device tools for controlling the members of the
organization so that things are always in command for the betterment of the
organization as well as the employees.
Abraham A/ASU/2010
Thank You !

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CHAPTER ONE:

What is meant by organizational behavior?

What is the importance of OB for organizations?

How do you approach the study of OB?

What are the characteristic features of OB?

What are Organizations?

• It is an academic discipline devoted to understanding individual and

• OB for short, is the study of human behavior in organizations.

• Systematic: It is not based on intuition or gut feeling, it uses scientific

• Actions: It studies actions such as productivity, absenteeism, and

• Attitudes: It studies attitudes of people such as job satisfaction.

• The key elements in OB are;

• This calls for a definite structure of the organization.

• Thus, there is an interaction of people, the external environmental influences,

▪ OB is just getting accepted as a science and hence it is not yet a full-fledged

▪ OB focuses on humanitarian aspects and believes that people‘s needs are to be

▪ It values individuals as thinking and feeling organism.

• OB is objective oriented. The basic objective is to solve the organizational

• OB concentrates on applied researches.

• OB draws ideas and knowledge from different disciplines like psychology,

• A model is an abstraction of reality, a simplified representation of some real world

• Many are determined in advance of the employment relationship.

• Processes are actions that individuals, groups, and organizations engage in as a

• At the individual level, processes include emotions and moods, motivation,

• Finally, at the organizational level, processes include human resource

• What are the primary outcomes in OB?

• Finally, at the organizational level we look at overall profitability and survival.

• Here the management is power oriented.

• Hence the dependence on boss is very high here.

• The model draws its assumptions from Mc Gregor’s theory X.

• The people try to avoid responsibility.

• Due to unlimited application of authority over the people better performance is

• It also makes the employees organizational dependent because the employee

• They need not depend on the boss here.

• This type of model is prevalent even now in family-managed business enterprises.

• Here only the management will decide the benefits.

• The focus is getting shifted to participation and involvement of employees through

• The model draws its inferences from McGregor’s theory Y.

• Such people have high moral values and positive attitudes.

• They only need an intellectual environment and freedom of job.

cooperative to achieve a common purpose.

Foundations of Individual Behavior

• Since the behavior of an individual is dependent on these attributes, a working

• Aptitude represents a person’s capability of learning something.

• Others provide measures of more specific competencies that are required of

• Examples, GMAT or SAT college graduate entrance tests.

Consistency: Occurs when there is agreement between our

• Attitude is a predisposition to respond in a positive or negative way to someone or

• Attitude do influence behavior of people and also their performance.

• Attitude puts an individual ready to respond to a situation favourably or

• Most of the research in OB has looked at three job

• This reduces the labour turnover and absenteeism.

• He is proud to be a member of the organization and would like to maintain and

• Because he is committed to the organization.

• An employee’s assessment of his satisfaction with the job is thus a complex

• Then, how, do we measure it?

• On-the-job stress = 32%

Source…..(L. Saad, “On-the-Job Stress in U.S. Workers’ Biggest Complaint,”

• The exit–voice–loyalty–neglect framework—is helpful in understanding the

• The responses are as follows;

2. Voice:- Includes actively and constructively attempting to improve conditions,

3. Loyalty:- Passively but optimistically waiting for conditions to improve, including

4. Neglect:-The neglect response passively allows conditions to worsen and includes