Organisational Behaviour

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Definition
Organisational Behaviour is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organisation for the purpose of applying such knowledge toward improving an organisations effectiveness.

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Organisational Behaviour is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organisation for the purpose of applying such knowledge toward improving an organisations effectiveness.

OB is a field of study

Means a distinct area of expertise with a common body of knowledge

What does it study?

It studies three determinants of behaviour in organisation Individuals, Groups, structure Applying such knowledge OB applies knowledge about individuals, groups and the effect of structure on behaviour in order to make organisation work more effectively.
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Therefore OB is concerned with the study of what people do in an organisation and how the behaviour affects the performance of the organisation.

It is concerned with employment related situations, and emphasises behaviour as related to concerns such as jobs, work, absenteeism, employment turnover, productivity, performance and management.

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CONTRIBUTING DISCIPLINES TO THE FIELD OF OB Psychology The science that seeks to measure, explain, and sometimes change the behaviour of human and other animals. Sociology The study of people in relation to their fellow human beings.

Social psychology An area with psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.
Anthropology The of societies to learn about human beings and their activities. Political science the study of the behaviour of individual and groups within a political environment.
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CONTRIBUTING DISCIPLINES TO THE FIELD OF OB Behavioural Science Contribution Unit of Output Learning Job satisfaction analysis
Motivation Personality Emotions Perception Training Leadership Group dynamics Work teams Communication Decision making Performance appraisal Attitude Selection Work design Stress Power Conflict Intergroup behaviour Organisational change Organisational culture

Psychology

Individual

Sociology
Formal organisational theory Organisational technology Behavioural change Attitude change Communication

Group

Study of OB

Social psychology

Group processes Group decision making

Comparative values & attitudes Cross culture analysis

Anthropology
Organisational culture &environment Conflict Intraorganisational politics www.a2zmba.com Power

Organisation system

Political science

CHALLENGES AND OPPORTUNITIES FOR OB

1. Responding to Globalisation 2. Managing Workforce Diversity 3. Improving Quality and Productivity 4. Responding to Labour Shortage 5. Improving Customer Service 6. Improving People Skill 7. Empowering People 8. Coping with Temporariness 9. Stimulating Innovation and Change 10.Helping Employees Balance Work/Life Conflicts 11.Improving Ethical Behaviour

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VALUES
Values Basic convictions that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence. Value System A hierarchy based on ranking of an individuals values in terms of their intensity.

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TYPES OF VALUES
Value typologies can be developed in two approaches as per survey conducted by Milton Rokeach, the survey is popularly known as Rokeach Value Survey (RVS). RVS consists of two sets of values Terminal values and Instrumental values

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TYPES OF VALUES

Terminal values Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime. Instrumental values Preferable modes of behaviour or means of achieving ones terminal values.

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Terminal and Instrumental Values in Rokeach Value Survey Terminal Values

A comfortable life (a prosperous life) An exciting life ( a stimulating, active life) A sense of accomplishment ( lasting contribution) A world of peace ( free of war and conflict) A world of beauty (beauty of nature and the arts) Equality (brotherhood, equal opportunity for all) Family security (taking care of loved ones) Freedom (independence, free choice) Happiness (contentedness) Inner harmony (freedom from inner conflict) Mature love (sexual and spiritual intimacy) National security (protection from attack) Pleasure (an enjoyable, leisurely life) Salvation (saved, eternal life) Self respect (self-esteem) Social recognition 9respect, admiration) True friendship (close companionship) Wisdom (a mature understanding of life)
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Instrumental Values
Ambitious (hardworking, aspiring) Broad minded (open minded) Capable (competent) Cheerful (lighthearted, joyful) Clean (neat, tidy) Courageous (standing up for your beliefs) Forgiving (willing to pardon others) Helpful (working for the welfare of others) Honest (sincere, truthful) Imaginative (daring, creative) Independent (self-reliant, self-sufficient) Intellectual (intelligent, reflective) Logical (consistent, rational) Loving (affectionate, tender) Obedient (dutiful, respectful) Polite (courteous, well-mannered) Responsible (dependable, reliable) Self-controlled (restrained, self-discipline)

ATTITUDES
Attitudes Evaluative statements or judgments concerning objects, people or events. Attitude may be favourable or unfavourable concerning objects or events. Attitudes are not the same as values, but the two are interrelated.

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COMPONENTS OF AN ATTITUDE

Attitude has three components and they are 1. Cognitive Component 2. Affective Component 3. Behavioural Component

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COMPONENTS OF AN ATTITUDE

Cognitive component of an attitude It is the opinion or belief segment of an attitude Affective component of an attitude It is the emotional or feeling segment of an attitude Behavioural component of an attitude An intention to behave in a certain way toward someone or something

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TYPES OF ATTITUDES
There may be thousands of attitudes in a person, OB focuses attention on a very limited number of work related attitudes. These work related attitudes are positive or negative and shows how employee feel about their job. Most of the research in OB has been concerned with three attitudes namely: 1. Job Satisfaction 2. Job Involvement 3. Organisational Committment
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JOB SATISFACTION
The term job satisfaction refers to an individuals general attitude toward his or her job. An individual with high level of job satisfaction holds positive attitudes about the job, while a dissatisfied individual may hold negative attitudes about the job.

Low job satisfaction can result in high attrition rate, absenteeism, and poor mental health.
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JOB INVOLVEMENT
Job involvement measures the degree to which a person identifies psychologically with his or her job and considers his or her percieved performance level important to self worth. High level of job involvement reduces attrition and absenteeism.
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ORGANISATIONAL COMMITTMENT
Organisation commitment is defined as degree to which an employee identifies with a particular organisation and its objectives and wishes to maintain membership in the organisation. An employee may be dissatisfied with his or her present job and consider it a temporary condition, yet not be dissatisfied with the organisation as a whole. But when dissatisfaction spreads to the organisation itself, individuals are more likely to resign.

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EFFECTS OF JOB SATISFACTION

The job satisfaction has an effect on the performance of an individual however in the organisation it tends to center on its effect on productivity, absenteeism and turnover.

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Satisfaction and productivity Happy workers are productive workers is a myth, the concept productive workers are likely to be happy workers may hold good. Satisfaction and absenteeism There is a negative relationship between satisfaction and absenteeism. Absenteeism increases with decrease in job satisfaction Satisfaction and turnover Satisfaction is also negatively related to turnover , factors like alternative job opportunities, length of tenure, labour market condition will also efefct the turnover.
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EXPRESSION OF DISSATISFACTION
Employee dissatisfaction can be expressed in various ways, however the following four responses shall indicate different responses to employee dissatisfaction. Exit : Dissatisfaction expressed through behaviour directed toward leaving the organisation. Voice : Dissatisfaction expressed through active and constructive attempts to improve conditions, may include union activity. Loyalty : Passively but optimistically waiting for the condition to improve. It is trusting organisation and management to do the right thing. Neglect : Dissatisfaction expressed through allowing condition to worsen, it includes chronic absenteeism, reduced effort and increased error rate.

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JOB SATISFACTION AND CUSTOMER SATISFACTION

Satisfied employees increase customer satisfaction and loyalty. Satisfied employee are more likely friendly and responsive which customers appreciate. Satisfied employees are less prone to turnover, customers are more likely to encounter familiar faces and receive experienced service.

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PERSONALITY

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Definitions Personality is the dynamic organisation within an individual of those psychological systems that determine his unique adjustments to his environment. - Gordon Allport Personality is the sum total ways in which an individual reacts to and interacts with others. - Stephen Robins

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PERSONALITY DETERMINANTS

Individual Personality is the result of heredity and environment and the third factor is recognised to be situation.

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HEREDITY
Heredity refers to those factors that were determined at conception. Physical stature, facial attractiveness, temperament, muscle composition and reflexes, energy level, and biological rhythms are characteristics that are generally considered to be either completely or substantially who the parents are; that is, by their biological, physiological, and inherent makeup. The heredity approach argues that the ultimate explanation of an individuals personality is the molecular structure of the genes.

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ENVIRONMENT

Environment factor like culture in which one is raised, early conditioning; norms among family, friends, social group and other influences that one experiences, exert pressure on personality of an individual.

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SITUTATION

Situation influences the effect of heredity and environment on personality. A individuals personality, although generally stable and consistent, does change in different situations. The different demands of different situations call for different aspects ones personality.

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LOCUS OF CONTROL
Locus of control is the degree to which people believe they are masters of their own fate
Some people believe that they are masters of their own fate. Other people see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance.

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INTERNALS Individual who believes that they control what happens to them EXTERNALS Individuals who believe that what happens to them is controlled by outside forces such as luck or cahnce.

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TYPE A AND TYPE B PERSONALITY

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TYPE A PERSONALITY
A person with a Type A personality is aggressively involved in chronic, incessant 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.

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Type As
1. 2. 3. 4. 5. Are always moving, walking, and eating rapidly Feels impatient with the rate at which most event take place Strive to think or to do two or more things at once Cannot cope with leisure time Are obsessed with numbers, measuring their success

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TYPE B PERSONALITY
Type B is exactly opposite to type A 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.

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Type Bs
1. Never suffer from a sense of time urgency with the accompanying impatience 2. Feel no need to display or discuss their achievements 3. Play for fun and relaxation and not exhibit superiority 4. Can relax without guilt

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PERCEPTION

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Perception is a process by which

individuals organise and interpret their sensory impressions in order to give meaning to their environment. - Stephen Robins

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Factors Influencing Perception

Factors in the situation Time Work Setting Social Setting

Factors in the Perceiver Attitudes Motives Interests Experience Expectations

PERCEPTION
Factors in the target Novelty Motion Sounds Size Background Proximity Similarity

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What do you see?

What do you see? What do you see?

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There's a face... and the word liar

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Is the left center circle bigger?

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No, they're both the same size

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It's a spiral, right?

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No, these are a bunch of independent circles

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What do you see ?

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A couple or a skull?

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Count the black dots!

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0 (ZERO)

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What do you see?

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Do you see the three faces?

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Process of Perception
1. Confrontation of stimulus The Individual comes face to face with another Individual/group/object/situation/problem

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Process of Perception

2. Registration
The individual registers the stimulus and its gravity

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Process of Perception

3. Interpretation
The individual tries to understand the real meaning of the situation.

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Process of Perception

4. Feedback
The individual evaluates the strength and weakness and gives a quick feedback to the sensory motor.

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Process of Perception

5. Reaction
The individual gives the response in terms of reaction that can be positive, negative or neutral, depending upon the mutual interaction between the stimulus and the individual.

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MOTIVATION

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IT IS THE NEED OR DRIVE WITHIN AN INDIVIDUAL THAT DRIVES HIM OR HER TOWARD GOAL ORIENTED ACTION. THE EXTENT OF DRIVE DEPENDS ON THE PRESCRIBED LEVEL OF SATISFACTION THAT CAN BE ACHIEVED BY THE GOAL
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-Definition-

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MOTIVATION IS A PREDISPOSITION TO ACT IN A SPECIFIED GOAL DIRECTED MANNER -Hellriegel and Slocum
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MOTIVATION REFERS TO GOAL DIRECTED BEHAVIOUR -Chung

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A process of stimulating the self or subordinates to get into the desired course of action -Michael Julius

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DIFFERENCE BETWEEN MOTIVATION AND SATISFACTION

MOTIVATION REFERS TO THE DRIVE AND EFFORT TO SATISFY A WANT OR GOAL. SATISFACTION REFERS TO THE CONTENTMENT EXPERIENCED WHEN WANT IS SATISFIED. IN OTHER WORDS, MOTIVATION IMPLIES A DRIVE TOWARD AN OUTCOME, AND SATISFACTION IS THE OUTCOME ALREADY EXPERIENCED.

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Employees' performance is, of course, partially determined by the opportunities given them to demonstrate their abilities. If employees are never given opportunities to utilize all of their skills, then the employer may never have the benefit of their total performance. Work performance is also contingent upon employee abilities. If employees lack the learned skills or innate talents to do a particular job, then performance will be less than optimal. A third dimension of performance is motivation.

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Mechanism of Motivation

Need
Deprivation

Drive
Direction

Barrier
Overt/Covert

Goal
Achievement

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NEEDS
An internal state of disequilibrium or deficiency which has the capacity to energise or trigger a behavioural response
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Motivation and Frustration

A person get frustrated because of unfulfilled need. Whenever a person is frustrated, the defence mechanism gets triggered into action. Frustration can be manifested into one or more of following behaviour: Aggression: A reaction to a situation where ones motive is blocked, causing oneself to turn against the barrier in terms of verbal or physical injury. Withdrawal: Leaving the field physically and psychologically. Fixation: An unreasonable stubbornness, repeated behaviour, non adjusting. Compromise: Adjusting with the situation leading to give and take attitude.
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MOTIVATION THEORIES

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MASLOWS HIERARCHY OF NEEDS

SelfActualization Needs Esteem Needs Belongingness Needs Security Needs Physiological Needs
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Achievement

Challenging job

Status
Friendship

Job title Friends in Work Group Pension Plan Base Salary

Stability Sustenance

Douglas Mcgregors Theory

Douglas Mcgregor, a professor of industrial Administration at MIT (USA) theorized that every person has certain basic assumptions about other peoples attitude towards work and organisation the assumption is labeled as Theory X and Theory Y.

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Theory X Assumptions
It is the traditional assumptions about the nature of people and states that1. Average human being have an inherent dislike of work and will avoid it if they can. 2. Because of this human characteristic of disliking work, most people must be coerced, controlled, directed and threatened with punishment to get them to put forth adequate effort toward the achievement of organisational objectives. 3. Average human beings prefer to be directed, wish to avoid responsibility, have relatively little ambition, and want security above all.

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Theory Y Assumptions
The assumption under this are _

1. The expenditure of physical effort and mental effort in work is as natural as play or rest. 2. External control and threat of punishment are not the only means for producing effort toward organisational objectives. People will exercise self direction and self control in the service of objectives to which they are committed. 3. The degree of commitment to objectives is in proportion to the size of the rewards associated with their achievement. 4. Average human beings learn, under proper conditions, not only to accept responsibility but also to seek it.
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Herzbergs 2-factor Theory

Fredrick Herzberg (1959) extended the work of Maslow and developed a specific content theory of work motivation. He conducted a widely reported study of about 200 accountants and engineers from eleven industries in the Pittsburgh area. He used the critical incident method of obtaining data for analysis. He asked them two questions: a) When did you feel particularly good about your job and what turned you on? b) When did you feel exceptionally bad about your job and what turned you off?
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CONTARSTING VIEW OF SATISFACTION AND DISSATISFACTION

TRADITIONAL VIEW
Satisfaction Dissatisfaction

HERZBERGs VIEW
Satisfaction Motivators No Satisfaction

No Dissatisfaction

Hygiene Factor

Dissatisfaction

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Herzbergs theory was based on a two-factor hypothesis that is factors leading to job satisfaction And factors leading to no job dissatisfaction. They were classified in two categories:

1) Motivational factors 2) Hygiene or maintenance factors

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Motivational factors Recognition Advancement Responsibility Possibility of growth Achievement Work itself

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Motivational factors are directly related to the job itself. Present of such factor create a highly motivating situation, but their absence does not cause job dissatisfaction. These factors are content oriented.

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Hygiene or Maintenance factors Company policy and administration Technical supervision Interpersonal relations with subordinates Salary Job security Personal life Working conditions Status Interpersonal relations with supervisors Interpersonal relations with peers/colleagues
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Maintenance factors are context oriented their presence does not significantly motivate the person. The presence of such factors prevents dissatisfaction and maintains a certain level of motivation but any reduction in the availabilities of these factors is likely to affect motivation and bring down the level of performance. According to Herzberg, Hygiene factors can dissatisfy by their absence but they cannot satisfy by their presence.

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Motivational vs. Hygiene Factors

Motivational Factors Hygiene factors

When present lead to satisfaction and motivation.

When present, help in preventing dissatisfaction but do not increase satisfaction or motivation. When absent increase dissatisfaction with the job.

When absent prevents both satisfaction and motivation.

Status goes down with Hygiene factors; Recognition goes up with Motivators
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McClellands theory of Needs

Developed by David McClelland and his associates. The theory focuses on three needs:
1. Achievement 2. Power 3. Affiliation

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Need for Achievement (nAch): The drive to excel, to achieve in relation to a set of standards. Need for Power (nPow): The need to make others behave in a way that they would not have behaved otherwise. Need for Affiliation (nAff): The desire for friendly and close interpersonal relationship

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E R G Theory
Clayton Alderfer of Yale University has reworked Maslows need hierarchy. He devised three groups of core needs: 1. Existence 2. Relatedness 3. Growth

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Maslows Need Hierarchy and Alderfers ERG Theory

Maslow
Self Actualisation

ERG Growth Relatedness Existence

Esteem Social Security Physiological

Maslows theory follows a rigid, steplike progression. ERG theory does not assume that there exists a rigid hierarchy. It demonstrates that (i) more than one need may be operative at the same time, and (ii) if the gratification of a higher level need is suppressed, the desire to satisfy lower level need increases. In ERG all the need categories could be operating at the same time
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Vrooms Expectancy Theory

The theory essentially emphasizes that motivation is increased if the individual perceives that 1. His effort will result in successful performance 2. Successful performance leads to desired rewards

The theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

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Vrooms Expectancy Theory

Individual Effort

Individual Performance

Organizational Rewards

Personal Goals

1. Effort-performance relationship: Probability perceived by the individual that exerting a given amount of effort will lead to performance. 2. Performance-reward relationship: The degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome. 3. Rewards-personal goal relationship: The degree to which organizational reward satisfy an individuals personal goals or needs and the attractiveness of those potential rewards for individual.

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Vrooms Expectancy Theory Vroom explains that motivation is a product of how much one wants something and ones estimate of the probability that a certain action will lead to it. This relationship is given in the formula:VXE=M V = Valence is strength of desire for something E = Expectancy is probability getting it with a certain action M = Motivation is strength of drive towards an action

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Vrooms Expectancy Theory

Range of Valence and Expectancy

Valance
-1 Expectancy 0 +1 0 +1

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EQUITY THEORY

James Stacy Adams (1965) proposed the equity theory which was based on his belief that an individuals motivation is influenced by his perception of how equitably he is treated at work.
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EQUITY THEORY

To express his ideas, Adam used following formula: Equity exists whenPersons Outcomes Persons Inputs Negative Inequity exists whenPersons Outcomes < Persons Inputs Positive Inequity exists whenPersons Outcomes > Persons Inputs Others outcomes Others inputs Others outcomes Others inputs Others outcomes Others inputs

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EQUITY THEORY

In order to restore equity, individuals can make one of the six choices: 1. Change their inputs (reduce efforts) 2. Change their outcomes (earning more on a piece rate basis producing higher quantity) 3. Distort perception of self (changing self perception) 4. Distort perception of others (changing thoughts about others) 5. Choose a different referent (changing person with whom comparison is made) 6. Leave the field (quit the job)

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