ORGANIZATI

ONAL
BEHAVIOR
CHAPTER ONE
INTRODUCTION

Organisational behaviour is the basis of human resource management and development. The
former is concept oriented whereas the latter is concerned with the technology of human
development. The variables influencing human development are scientifically studied under
organisational behaviour.
Human resource management, is activated, directed and channelized by the application of the
knowledge of organisational behaviour which has become a field of study, research and
application for the development of human resources and the organisation as a whole. Thus, we
can say that all these terms are interrelated but not synonymous with each other.
 1. “Organisational behaviour is the study and application of knowledge
about how people act within an organisation. It is a human tool for
human benefit. It applies broadly to the behaviour of people in all
types of organisation.”— Newstrom and Davis.

2. “Organisational behaviour is directly concerned with the

understanding, production and control of human behaviour in
DEFINITION organisations.”—Fred Luthans.

3. “Organisational behaviour is a field of study that investigates the

impact that individuals, groups and structure have on behaviour
within the organisations for the purpose of applying such knowledge
toward improving an organization’s effectiveness.”—Stephens P.
Robbins.
1. I n d i v i d u a l B e h a v i o r

2. I n t e r p e r s o n a l B e h a v i o r

3. B e h a v i o r w i t h i n G r o u p

4. I n t e r g r o u p B e h a v i o r

5. I n t e r - o r g a n i s a t i o n a l B e h a v i o r
 NATURE AND
CHARACTERISTICS OF
OB
• Interdisciplinary in nature.

• Interaction of theory, research and practice.

• Goals

• People

• Group/Individual behavior

• Behavior directed at different parties.

• Employee and Organizational needs

ADD PICTURES

INTERACTION OF THEORY, RESEARCH AND PRACTICE #1 BEHAVIOR DIRECTED AT INTER DISCIPLINARY IN

HTTPS://WWW.YOUTUBE.COM/WATCH?V=4IS19PDUTWC
DIFFERENT PARTIES #2 NATURE #3
Multi-discipline nature
of OB
1. Psychology

2. Sociology

3. Social Psychology

4. Anthology

5. Political Science
Goals of OB

Productivity

Reduction in absenteeism

Reduction in Employee Turnover

Organizational Citizenship
Job Satisfaction
• To Describe Behaviour
• To Understand Behaviour
• To Predict behaviour
• To Control behaviour
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PSYCHOLOGY ANTHOLOGY
1. POLITICAL SCIENCE
Models of Organizational behaviour

1.The Autocratic Model

2. The Custodial model

3.The supportive Model

4.The Collegial Model

https://www.businessmanagementideas.com/term-paper/human-
resource-management-term-paper/models-of-organizational-
behaviour-term-paper-hrm-2/12618
Perception

What Is Perception?

Perception is the sensory experience of the world. It involves both

recognizing environmental stimuli and actions in response to these
stimuli.

Through the perceptual process, we gain information about the

properties and elements of the environment that are critical to our
survival. Perception not only creates our experience of the world
around us; it allows us to act within our environment.

https://www.youtube.com/watch?v=DOmrm0Hy-2Y
 Impact of Perception
In order to see the impact of perception, it can be helpful to look at how the process works. This
varies somewhat for every sense. In the case of visual perception:
The environmental stimulus: The world is full of stimuli that can attract attention through
various senses. The environmental stimulus is everything in the environment that has the
potential to be perceived.
The attended stimulus: The attended stimulus is the specific object in the environment on
which attention is focused.
The image on the retina: This involves light actually passing through the cornea and pupil and
onto the lens of the eye. The cornea helps focus the light as it enters the eye, and the iris of the
eye controls the size of the pupils in order to determine how much light to let in. The cornea and
lens act together to project an inverted image onto the retina.
Perception: In this step of the process, you perceive the stimulus object in the environment. It is
at this point that you become consciously aware of the stimulus.
Recognition: Perception doesn't just involve becoming consciously aware of the stimuli. It is
also necessary for the brain to categorize and interpret what you are sensing. The ability to
interpret and give meaning to the object is the next step, known as recognition.
Action: The action phase of perception involves some type of motor activity that occurs in
response to the perceived and recognized stimulus. This might involve a major action, like
running toward a person in distress, or something as subtle as blinking your eyes in response to a
puff of dust blowing through the air.
Performance appraisal
Employees interview
Corporate image.
 Characteristics of the perceived(stimuli)

Size Intensity

Contrast

Novelty Motion

Repetition
Characteristics of Perceiver

Motives
Errors in perception
https://www.youtube.com/watch?v=opaZlJPEa20

Selective
Perception
Expectancy
Halo effect
effect

Contrast
Stereotypes
effect

Projection
Personality

“The dynamic organisation within the individual of those

psychophysical systems that determine his unique adjustments to his
environment ”

By Gordon Allport

“The unique and relatively stable patterns of behaviour, thoughts ,

and emotional shown by individuals.”

By Baron and Greenberg

Personality traits
https://www.youtube.com/watch?v=KCwHV9HCxH0
https://www.youtube.com/watch?v=IB1FVbo8TSs

Locus of control

Authoritarianism
Narcissism

Machiavellianism
Risk Taking

Type A and B
Self- esteem

Self- monitoring
Which people tends to have strongest attitude ?

A Children

Young

Adult

Middle aged adult

A person's ________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her
attitudes or behavior.

A) subculture

B) family

C) social class

D) reference groups

________ refers to a set of distinguishing human psychological traits that lead to relatively consistent and enduring
responses to environmental stimuli. A) Image B) Personality C) Psychological transformation D) Lifestyle

Consumers often choose and use brands that have a brand personality consistent with how they see themselves, also
known as the ________ A) actual self-concept B) ideal self-concept C) others' self-concept D) prohibitive self-
concept
Attitude

Meaning:- Attitudes represent our evaluations, preferences or rejections

based on the information we receive. It is a generalized tendency to
think or act in a certain way in respect of some object or situation,
often accompanied by feelings. It is a learned predisposition to respond
in a consistent manner with respect to a given object.

This can include evaluations of people, issues, objects, or events. Such

evaluations are often positive or negative, but they can also be
uncertain at times.

Definition

As evaluative statements- either favourable or unfavourable concerning

objects people or event. They reflect how one feels about something”
Components of attitude

Cognitive Component

The cognitive component of attitudes refers to the beliefs, thoughts, and attributes that we would associate with an
object. It is the opinion or belief segment of an attitude. It refers to that part of attitude which is related in general
knowledge of a person.

Typically these come to light in generalities or stereotypes, such as ‘all babies are cute’, ‘smoking is harmful to
health’ etc.

Affective Component

Affective component is the emotional or feeling segment of an attitude.

It is related to the statement which affects another person.

It deals with feelings or emotions that are brought to the surface about something, such as fear or hate. Using the
above example, someone might have the attitude that they love all babies because they are cute or that they hate
smoking because it is harmful to health.

Behavioral Component

Behavior component of an attitude consists of a person’s tendencies to behave’in a particular way toward an object. It
refers to that part of attitude which reflects the intention of a person in the short-run or long run.

Using the above example, the behavioral attitude maybe- ‘I cannot wait to kiss the baby’, or ‘we better keep those
smokers out of the library, etc.
Functions of Attitude
The most important function of an attitude can only be ascertained by
considering it about the person who holds it and the environment in which
they operate. Consequently, what is the same attitude may serve rather
different purposes depending on who holds it and where/when it becomes
salient to them.

Attitudes differ in strength.

Strong, central attitudes refer to important attitude objects that are strongly
related to the self.

These attitudes are often related to important values.

Daniel Katz outlines 4 functions of attitudes;

Adjustment Function.

Ego-Defensive Function.

Value-Expressive Function.

Knowledge Function.
Adjustment Function

Attitudes often help people to adjust to their work environment.

When employees are well treated, they are likely to develop a positive
attitude toward management and the organization.

When employees are criticized and given a minimal salary, they are
likely to develop a negative attitude toward management and the
organization.

These attitudes help employees adjust to their environment and are a

basis for future behavior. The adjustment function directs people
toward pleasurable or rewarding objects and away from unpleasant,
undesirable ones.

It serves the utilitarian concept of maximizing reward and minimizing

punishment.

Thus, the attitudes of consumers depend to a large degree on their

perceptions of what is needed satisfying and what is punishing.
Ego-Defensive Function

The ego-defensive function refers to holding attitudes that protect

our self-esteem or that justify actions that make us feel guilty.

This function involves psychoanalytic principles where people use

defense mechanisms to protect themselves from psychological harm.

Mechanisms include denial, repression, projection, rationalization,

etc.

For example; an older manager whose decisions are continually

challenged by a younger subordinate manager may feel that the later
is brash, cocky, immature, and inexperienced.

In truth, the younger subordinate may be right in challenging the

decisions.

The older manager may not be a very effective leader and may
constantly make poor decisions.

On the other hand, the older manager is not going to admit this but
will try to protect the ego by blaming the other party.
Value-Expressive Function

Whereas ego defensive attitudes are formed to protect a person’s self-image, value-expressive attitudes enable the expression
of the person’s centrally held values.

Central values tend to establish our identity and gain us social approval thereby showing us who we are, and what we stand
for.

Some attitudes are important to a person because they express values that are integral to that person’s self-concept.

Therefore consumers adopt certain attitudes to translate their values into something more tangible and easily expressed.

Our value-expressive attitudes are closely related to our self-concept.

One whose central value is freedom, the individual may express very positive attitudes towards the decentralization of
authority in the organization, flexible work schedules, and relaxation of dress standards.

Knowledge Function

The knowledge function refers to our need which is consistent and relatively stable.

This allows us to predict what is likely to happen, and so gives us a sense of control.

Some attitudes are useful because they help to make the world more understandable.

They help people ascribe causes to events and direct attention towards features of people or situations that are likely to be
useful in making sense of them.

Consequently, they help to make the world more understandable, predictable, and knowable. Knowing a person’s attitude
helps us predict their behavior.

For example- people who are not familiar with nuclear energy may develop an attitude that is dangerous and should not be
used as an energy source.

Stereotyping is another example.

In the absence of knowledge about a person, we may use a stereotyped attitude for judging the person.
Job related attitudes

Job involvement

Organizational
Perceived organisation
support

Employee engagement

Job satishfaction
Determinants of job satisfaction

Personal
factors
Factors inherent
in the job

Factors
controlled by the
management
Personal factors

Fulfilment
SEX
of personal
Needs
Age
Level of Number of
Aspiratio Dependent
n Person s
al Area
Educat Job
Experienc
ion e
Person Intelli
ality gence
Factors inherent in the job

Nature of
JOB Skill
Occupation
al status

Organizatio Geographical
location and size
nal size of the city
Factors controlled by the management

Security
Fringe
Pay
benefits

Communication
and knowledge
Working
of result condition

Opportunities
Co-workers and
responsibility
Supervision
The impact of Job satisfaction

Destructive Constructive

Ac
tiv
e
EXIT VOICE

NEGLEC LOYALT
Pa
ssi T Y
ve
Motivation

Definition:-

“The process that account for an individual’s intensity, direction and

persistence of effort toward attainment a goal.”

By Robbins and Judge

So there 3 main elements of motivation

1. Intensity

2. Direction

3. Persistence
Theories of motivation

Early •Abraham Maslow's Hierarchy of needs

•ERG Theory

Theories of •X& Y Theory

•Two factor theory
•Theory of needs

Motivation
Modern •Goal setting theory
• Self efficiency theory

theory of •Reinforcement theory

•Equity theory
•Expectancy theory

motivation
It is important to understand the two terms, internal motivation and external motivation is made up of
the forces which exist within an individual, I.e., His needs wants, and desires Theory X and Theory Y.

External motivation Includes the forces which exist inside the individuals as well as the controlled by
the manager, including items such as salaries, working conditions, company policy and job content
items, such as recognition; advancement, and responsibility.

Douglas McGregor’s theory incorporates both internal and external motivation. McGregor’s sets forth
two alternative views of human nature first view are called Theory-X and the second view is called
Theory-Y.

Theory X

According to theory X, there are following assumptions about human nature, on which the manager has
to base his motivation efforts:

The average human being has an inherent dislike of work and will avoid it if he can do so.

Because of his human characteristics of dislike of work, most people must be coerced, controlled,
directed, and threatened with punishment to get them to put forth adequate efforts towards the
achievement of organizational objectives.

Average human being prefers to be directed, wishes to avoid responsibility, has relatively little
ambition, wants security above all.

McGregor’s felt that the assumption of Theory-X was used in most industrial organizations of his time,
but they were generally incorrect.

Thus, the management feels that development from these assumptions will be inadequate for the full 
utilization of each worker’s potential because they will often fail to motivate people to work for the
realization of organizational objectives.

Hence, He felt the need to revise and correct these assumptions to conform to the present day
organizational setup and ever-developing personality of the employees.

It may be noted that Theory X is considered to be the “traditional view of direction and control”
Theory Y

Theory y is McGregor’s other modem view of the nature of man.

It contains assumptions which he believed could lead to greater motivation And better fulfillment of both individual needs and organizational goals.

The Assumptions of Theory Y Are:

The expenditure of physical and mental efforts in work is as natural as play or rest.

External control and the threat of punishment are not the only means for bringing about efforts towards organizational objectives.

Commitment to objectives is a function of the reward associated with their achievement.

The average human being learns, under proper conditions, not only to accept but to seek responsibility.

The capacity to exercise a relatively high degree of imagination. Ingenuity and creativity in the solution of organizational problems are wide,
distributed in the population.

Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.

Deal of Theory X or Theory Y

It may be noted that the main foundation of Theory-Y is ‘Integration’. i.e., The establishment of an environment in which employees can best achieve
their own goals by committing themselves to the organization’s objectives.

In doing so, Employees are expected to exercise a large degree of internal motivation. The emphasis on internal motivation implies that all employees
will be motivated by self-esteem and self-actualization needs while on the job. This is not always true.

It may further be noted that it is rare that Theory X or Theory Y is used in its pure form. Instead, workable operational theories are developed using
various amount of the assumptions of each theory.
Modern theories of Motivation

Goal setting theories

Self efficacy theory

Reinforcement theory

Equity theory

Expectancy theory
Autocratic model of OB is suitable for ____type of personality .

A) X

B) Y

C) Z

Autocratic model of OB is very ____in nature.

A) Supportive

B) effective

C) dictatorial

D) participative

Under which model of OB, employees were provided with welfare benefits and
fringe benefits?
Autocratic model of OB is suitable for ____type of personality .

A) X

B) Y

C) Z

Autocratic model of OB is very ____in nature.

A) Supportive

B) effective

C) dictatorial

D) participative

Who defined perception?

______ is a state of mind that makes someone takes a point of understanding of a situation

A) Perception

B) Behaviour

C) attribute

D) Society
MODERN THEORY OF MOTIVATION

Expectancy model

Goal setting theory Equity theory

Self efficacy theory Reinforcement theory

EXPECTANCY THEORY
Developed by Victor Vroom in 1964. Further extended by Porter & Lawler .
3 Variables
1.How much one wants a reward ( Valence )
2. One’s estimate of the probability that effort will result into successful performance .
( Expectancy )
3. One’s estimate that performance will result in receiving the reward( Instrumentality )
EQUITY THEORY
 ORGANIZATIONAL CONFLICT
Definition: Organizational Conflict or otherwise known as
workplace conflict, is described as the state of disagreement or
misunderstanding, resulting from the actual or perceived dissent
of needs, beliefs, resources and relationship between the
members of the organization. At the workplace, whenever, two or
more persons interact, conflict occurs when opinions with respect
to any task or decision are in contradiction.
“As any sitation in which two or more parties feel themselves in
opposition. Conflict is an interpersonal; process that arises from
disagreements over the goals to attain or the methods to be used
to accomplish these goals ”
LEVELS OF ORGANISATION

Intrapersonal
Inter personal

Inter
group
conflict
Intra grp
Sources of conflict

1. Organisational change

2. Personality clashes

3. Ambiguity over responsibility anf juridiction

4. Different values

5. Treat to status

6. Contrasting perception

7.Distrust

Faulty communication
Negotiation

“A process in which two or more parties exchange goods or services

and attempt to agree on the exchange rate for them”

By Robbins &judge

2 main or common approaches of bargaining

1 Distributive

Target point

Resistance point

2. Integrative

3. Features of DB
 power

Definition of power

Power is the ability to influence other people. It refers to the capacity to affect the
behaviour of the subordinate with the control of resources. It is an exchange
relationship that occurs in transactions between an agent and a target. The agent is
the person who uses the power and target is the receipt of the attempt to use power.

Distinction between Power, Authority and Influence

Power is the ability to influence someone else. Influence is the process of affecting
the thoughts, behaviour and feelings of another person. Authority is the right to
influence another person. Authority is a legitimate right to influence others.

(1) Authority is right to influence others but power is ability to influence people.

(2) Authority is legitimate while power is not.

(3) Authority confers legitimacy to power but power itself need not be legitimate.
   Authority Power

“Institutionalized and legal power inherent in a particular “Ability to cause or prevent an action, make things happen;
Definitions from BusinessDictionary.com job, function, or position that is meant to enable its holder the discretion to act or not act. Opposite of disability, it
to successfully carry out his or her responsibilities”. differs from a right in that it has no accompanying duties”.

It is the formal right given to a manager to make decisions

Way of rights It is the personal ability to influence others or events.
or to command.

Authority is the right given to a manager to achieve the Power is the ability of a person or a group to influence the
Roles
objectives of the organization. beliefs and actions of other people.

Direction It flows in the downward direction of an organization. It can flow in any direction.

Authority is always official in nature; hence, it is Power need not be official in nature; therefore it need not
Legitimate
legitimate. be legitimate.
Type of Power Employee Response Types of power

Reward Power
1) Reward Power Compliance
Coercive Power
2) Coercive Power Resistance
3) Legitimate Power Legitimate Power
4) Personal Power Compliance
Personal Power
5) Expert Power Commitment
Expert Power
Commitment
 Organization Politics

Political Tactics Used to Gain Power

1. Social Exchanges

2. Identification with higher authority

3. Selective service

4. Control of information

5. Alliances

6. Networking

7. Power and status symbols

8. Power Plays
Causes of Political Behaviour
Individual factors
Self Monitoring

Locus of control

Machiavellianism

Organizational factors
Declining resource

Promotional opportunities

Low trust

Role ambiguity

Performance evaluation systems

Zero sum reward systems

Democratic decision making processes

Rewarding of Political behaviours

Group behaviour

What is a group and why people join groups?

Types of groups

Formal Groups

1. Command group

2. Task Groups

Informal groups

1. Interest groups

2. Friendship groups
Group

Stephen Robbins defines a group “ As two or more individuals, interacting and interdependent, who have
come together to achieve particular objectives”

Marvin Shaw “A group is two or more persons who interact with one another such that each person
influences and is influenced by other person.”

Why do people join groups?

1Affiliation motivation

2Security

3.Satishfaction

4.Shared interest

Self esteem

Status

Power

Goal achievement
Types of Groups

•Command group
Formal •Task group

Inform •Interest
•Friendship
al
Stages of group development

Advocati
Performin ng
g
Norming

Stormin
g
Form
ing
Group behaviour model

Roles
Cohesive
ness Norms

Group
size Status
Team and team building

“A group whose in dividable efforts results in a performance that is

greater than the sum of those individual inputs.”

by Stephen Robbins.

Characteristics

1. Small number

2. Mix of skills

3.Common purpose or goal

4. Mutually accountable
BASIS FOR COMPARISON GROUP TEAM
Meaning A collection of individuals who work together A group of persons having collective identity
in completing a task. joined together, to accomplish a goal.

Leadership Only one leader More than one

Members Independent Interdependent
Process Discuss, Decide and Delegate. Discuss, Decide and Do.

Work Products Individual Collective

Focus on Accomplishing individual goals. Accomplishing team goals.

Accountability Individually Either individually or mutually

Synergy No positive synergy

Commitment Member share common interest goal Not only common goal but they also have a
common commitment

Skills Random and varies skills Skills of the members are complementary
Types of team

Purpose & mission

Time

Degree of autonomy

Authority structure
Authority structure

1. Problems solving teams

2. Self managed work teams

3. Cross functional teams

4. virtual team
Employees stress and counselling

Stress may be defined as a state of psychological and /or physiological imbalance resulting
from the disparity between situational demand and the individuals ability and/ or motivation
to meet demands.

Effects /symptoms of stress

1. Duration

2. Strength

3. Individual characteristics

The effects of stress are physiological, psychological and behavioural. Stress affects ones
body, mind and behavior.

1. physiological effects

2. Psychological effects

3. Behavioural effects.
Organisational change

Meaning

Resistance to change

1. Logical

2. Psychological

3. Sociological

Implementing change

Unfreezing

Changing

Refreezing
Transformational Leadership and change

Important element

1. Creating a vision

2. Communicating charisma

3. Stimulating learning
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