ORGANIZATION THEORY

AND BEHAVIOUR
Topics to be discussed

• Individual V/s Group Behaviour

• Motivation and Morale

• Motivation concept, Types

• Motivation Theories

• Leadership concept & Traits

Individual V/s Group Behaviour
Motivation and Morale
• Motivation: The inner or outer force guiding a
person’s actions depends on their unique
interests, needs, and desires is motivation.
Motivation can stem from personal fulfilment or
the pursuit of external rewards.

• Morale: The emotional and mental state of a

group or team reflects their overall attitude,
happiness, and confidence at work is morale.
Morale is a collective experience, indicating the
general feeling of well-being and satisfaction
within a group.
•
Morale:
• Morale is a person’s or a group’s emotional state and it
can greatly affect a business. Good morale leads to
happy employees, better customer satisfaction, and
more success. Bad morale can lead to the opposite.
• To improve morale in a business, companies can
recognise their employees, offer training and
opportunities, and create a positive workplace.
• They can also address any problems that might be
affecting morale, such as stress or job security, and work
to solve them.
• By focusing on employee morale, a business can create
a better work environment, increase motivation, and
overall achieve more success.
Motivation
Contents of Presentation
• Concept, Nature and significance
• Types of Motivation
• Determintants of Motivation
• Theories of Motivation
a) Maslow’s Theory
b) McClleland Theory
c) Theory X and Theory Y
 Motivation
• Is the result of an interaction
between the person and a situation;
it is not a personal trait.
• Motivation works best when
individual needs are compatible with
organizational goals
Motivation Theories
Concept of Motivation

Basic motivational concepts

 Motivation—the forces within the individual that
account for the level, direction, and persistence of
effort expended at work.
 Reward—a work outcome of positive value to the
individual
 Extrinsic rewards—valued outcomes given to
someone by another person.
 Intrinsic rewards—valued outcomes that occur
naturally as a person works on a task.
Management Fundamentals - Chapter 14
12
Herzberg’s Two Factor Theory
Types of motivation theories
 Content theories
 Human needs and how people with different needs may
respond to different work situations.
 Process theories
 How people give meaning to rewards and make decisions on
various work-related behaviors.
 Reinforcement theory
 How people’s behavior is influenced by environmental
consequences.

Management Fundamentals - Chapter 14

13
Types of Motivation
Early Theories of Motivation

• Maslow’s Hierarchy of Needs

• MacGregor’s Theories X and Y
• Herzberg’s Two-Factor Theory
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.
Maslow’s Hierarchy of Needs
 Hierarchy of Needs
Need Level Description Examples
Self-
Self- Realize
Realizeone’s
one’s Use
Useabilities
abilities
Actualization
Actualization full
fullpotential
potential to
tothe
thefullest
fullest

Feel
Feelgood
good Promotions
Promotions
Esteem
Esteem about
aboutoneself
oneself &
&recognition
recognition

Social
Social Interpersonal
Interpersonal
Social
Social interaction,
interaction,love
love relations,
relations,parties
parties

Job
Jobsecurity,
security,
Safety
Safety Security,
Security,stability
stability health
healthinsurance
insurance

Food,
Food,water,
water, Basic
Basicpay
paylevel
level
Physiological
Physiological shelter to
shelter tobuy
buyitems
items
Lower level needs must be satisfied before higher needs are
addressed.
McGregor’s Theory X and Theory Y

Theory X
Assumes that workers have little
ambition, dislike work, avoid
responsibility, and require close
supervision.
McGregor’s Theory X and Theory Y
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 Z
• Theory Z was developed by Dr. William Ouchi’s
so-called “Japanese Management” style
popularized during the Asian economic boom of
the 1980s.
• According to Ouchi, Theory Z management
promotes stable employment, high
productivity, and high employee morale and
satisfaction.
• Promoting Theory Z and the Japanese word
“Wa” is how the Japanese economy became so
powerful. And also, because the Japanese show
a high level of enthusiasm to work, some of the
researchers claim that Z in the theory Z stands
 Three-Needs Theory (McClelland)

There are three major acquired needs that

are major motives in work.
Need for achievement (nAch)
The drive to excel and succeed
Need for power (nPow)
The need to influence the behavior of
others
Need of affiliation (nAff)
The desire for interpersonal
relationships
McClelland’s Acquired Needs
Theory

nPow

nAch nAff
Leadership & Traits
 Leadership is a relationship
where influence is given to meet
individual or group goals.
Leadership
• Leadership is a skill of motivating large number of
people to act for achieving a common goal in an
organization
• A leader directs, guides, supports, communicate,
influence and in all stand behinds the group of an
institution forever
A leader is a person who helps an individual or
a group of individuals in achieving their goals.

A leader does not always have to be the

president, or the elected leader. It may
be an active leader of the group, or
someone who reaches out to help another
person.

A follower is an individual who follows the

ideas, goals, or tasks of a leader. Followers
are developed by working together to identify
goals and strategies for achieving the goals.
3 Main Types of Leadership Styles
1. The Autocratic or Authoritarian Leader
2. The Democratic or Participative Leader
3. The Laissez-faire or Delegative Leader
2 Other Styles
• The Charismatic Leader
• The Servant Leader
The Autocratic or Authoritarian Leader

• Given the power to make

decisions alone, having total
authority.

• Closely supervises and

controls people when they
perform certain tasks.
 Authoritarian leadership

• Also known as autocratic leaders, they are strict and

• tell workers what to do. They have a high level of control: they make all the
decisions themselves and expect no input from workers.

• Pros
• Quicker decision-making process
• Workers are closely supervised so less mistakes.

• Cons
• Employee motivation can be low.
• Labour turnover can be high.
• Less creativity due to lack of worker input.

Philip Allan Publishers © 2015

 Democratic leadership

• Also known as participative leadership, where workers will contribute in the

decision-making process. There is considerable scope for involvement and
participation.

• Pros
• Worker involvement encouraged, which can lead to better decisions.
• Motivation is high and labour turnover low.

• Cons
• Consultation with staff can be time consuming.
• Should staff be involved in some areas of the business e.g. sensitive or more
complex issues?

Philip Allan Publishers © 2015

The Democratic or Participative Leader

• Includes one or more

people in the decision
making process of
determining what to do
and how to do it.
• Maintains the final
decision making
authority.
The Laissez-faire or Delegative Leader
Laissez-faire is a
• Allows people to make their French phrase
own decisions. meaning “let do”
• Leader is still responsible for
the decisions that are made.
• This style allows greater
freedom and responsibility for
people.
• However, you need competent
people around you or nothing
will get done.
 Laissez-faire leadership

• These leaders leave their colleagues to get on with their work without
supervision or control. The leader will often set boundaries and a given task
and not monitor until it is complete.

• Pros
• Employee motivation is high.
• Workers are often most creative with this form of management.

• Cons
• Manager control is required at times and this lack of involvement can lead to
mistakes or failed projects.

Philip Allan Publishers © 2015

The Charismatic Leader

• Leads by creating
energy and eagerness in
people.
• Leader is well liked and
inspires people.
• Appeals to people’s
emotional side.
The Servant Leader

• The highest priority of

this leader is to
encourage, support and
enable people to fulfill
their full potential and
abilities.
• Helps people achieve
their goals.
• Works for the people.
Combinations of Styles

• A leader can also be a

combination of styles…
• What leadership styles do
you think Adolf Hitler used?
The Trait Theory
• Thomas Carlyle and Francis Galton
established and supported trait theory of
leadership
• Ordway Tead & Chester I. Barnard advocated
the theory prominently
• It is also known as Dispositional Theory
• Theory focuses that successful leaders
definitely have some personalities traits and
abilities like courage, leading capacity,
communication skill etc. which make them
different from those who are less effective.
Utility or Importance of theory
• It can be applied by people at all types of
organizations
• This theory gives an awareness to leaders to
identify their strengths and weaknesses and
develop skills accordingly needed for the
organization
Situational theory of leadership

• In 1969 this theory was introduced as life cycle

theory of leadership

• It works on assumptions that the most effective

style of leadership changes from situation to
situation
• If a leader wants to be successful he has to
adept his attitude and style according to
situation
Behavioural Theory : assumptions
• This theory believes that leaders can be made
rather then born
• Successful leadership is based on definable and
learnable behaviour
• Specific behaviour differentiate leaders from
non-leaders
• Particular behaviour determines the style of
leadership i.e.autocratic or democratic etc.
Managerial Grid

• Robert Blake and Jane Mouton (1960s) proposed a graphic portrayal

of leadership styles through a managerial grid (sometimes
called leadership grid).
• The grid depicted two dimensions of leader behavior, concern for
people (accommodating people’s needs and giving them priority) on
y-axis and concern for production (keeping tight schedules) on x-axis,
with each dimension ranging from low (1) to high (9), thus creating
81 different positions in which the leader’s style may fall.
Blake Mouton grid

Philip Allan Publishers © 2015

Thanks for
Listening and Involving