organizational Beh _FINAL

ORGANIZATIONAL
BEHAVIOUR
PRESENTED BY-
Dr. MEGHA KOCHHAR
ASSISTANT PROFESSOR – PSYCHOLOGY
RELATIONSHIP PSYCHOLOGIST
CONTENTS
UNIT 1 – INTRODUCTION TO OB
UNIT 2 – INDIVIDUAL LEVEL PROCESSES
UNIT 3- DYNAMICS OF OB
UNIT 4- CREATING POSITIVE ORGANIZATION
UNIT 5 – Organizational Culture & Change
INTRODUCTION
• The study of organizations & the collection of people within them
together comprises the field of organizational behaviour
• O+B = OB
• OB is the study of human behaviour in organizational setting , the
interface between human behaviour & organization & the
organization itself
• Organizational Behaviour (OB) is the field of study that investigates
the impact that individuals, groups & structure have on behaviour,
within organizations for the purpose of applying such knowledge
towards improving an organization’s effectiveness.
What is Organizational Behaviour?
• Organizations are social systems
• Organization is a combination of Humanity & Technology
•OB is the study and applicati on of knowledge about how
people act within the organizati on.
Contd…..
•It is a human tool for human benefi t .

•It is the study of human behavior, atti tudes & performance in
organizations
Contd…..
• OB is the study of human behaviour at workplace.
• The investigation of the impact that individuals, groups, & structure have
on behaviour within organizations, for the purpose of applying such
knowledge towards improving org. effectiveness
• OB theories have widespread applications
• Knowing these theories can help you to
Promote the well-being of employees
Evaluate solutions proposed by managers and consultants
Predict what happens in organizations
Influence the direction of your organizations
Contd…..
• A complex set of forces affects the nature of organizations
today.
• It can be classified in 4 areas-
1. People
2. Structure
3. Technology
4. Environment
Contd…..
•When people join the organization to accomplish the goals/
objectives, some kind of structure is required. They use
machinery, gadgets & technology to achieve the
organizational goals.
•At the same time they are influenced by external
environment.
OB
•Organizations are defined as social arrangements, constructed by
people, who can also change them.
----Buchanan and Huczynski (1997)
• Organizations are a system of cooperative activities - and their
coordination requires something intangible and personal that is
largely a matter of personal relationships.
---- Barnard (1938)
• OB is concerned with “the study of the structure, functioning
and performance of organizations, and the behavior of groups
and individuals within them”.
---- Pugh (1971
Why do we study OB
• To learn about yourself & how to deal with others
• You are a part of an organization now & will continue to be a part of
many
• Organizations are increasingly expecting individuals to be able to work
in teams, at least for a while.
• So of you might want to be managers, entrepreneurs
Characteristics of OB
• Goal Oriented
• Levels of Analysis
• Human Tool
• Satisfaction of employees needs
• A total systems approach
Nature of Organizational Behaviour
Environment
Human Behaviour in Organizational Settings
The Individual-Organization Interface
The Organization
Environment
Interpersonal skills at Workplace
• Developing managers interpersonal skills helps organizations attract and keep high
performing employees
• Outstanding employees are always in shortage.
• Good places to work – Google, Intel, SAP, Labs India, Godrej consumer Products – have a
big advantage.
• Research shows – social relationships among co-workers & supervisors is strongly related
to high Job Satisfaction.
• Positive social Relationships and Low stress are related.
• Managers – good interpersonal skills – pleasant workplace.
• Pleasant workplace leads to good economic sense.
• Giving rise to “Social Entrepreneurship Education” in Universities
• Great need to understand the MEANS & OUTCOMES OF “CSR”
Interpersonal skills at Workplace
• Indian managers have often been exhorted to improve their
Communication skills
• Rajeev Chopra said “Indians are just about average when it comes to
soft skills” We need help in developing communication skills.
• In this competitive world Technical skills are not enough –
Good People skills are important.
Interpersonal Behaviour… {IPB}
• IPB is the study of one’s own perception, knowledge , attitude &
motivation and how these affect one’s behavior to the self & with
others.
• It is characterized mainly by 3 factors…
• – Communication skill :
• Knowledge / literacy / intelligence
• Listening skill
• Verbal skill
• Active listening/feedback
Interpersonal Behaviour
– Emotional intelligence :
• » Self awareness
• » Emotional maturity
– Social skill :
• » Good eye contact
• » Body language
• » Empathy/understanding & assimilating ability
JOHARI WINDOW
• JW is a psychological too created by Joseph Luft & Harry Ingham in
1955 in u.s.
• It helps people to understand their better interpersonal relations &

communication.
JOHARI WINDOW
Certain ways to develop one’s own IPS
• Introspect within yourself to know the type of self
• Decide your objective with set-limits {i.e. where you need to be more
open}
• Say “HELLO” first with a smile
• Be appreciative , motivate & help others
• Be punctual
• Bring people together
• Resolve conflicts
• Keep small successes going on – enjoy it with people around you.
• Share your dreams , desires ,hobbies & ambitions.
Certain ways to develop one’s own IPS
• Pay attention to others
• Practice active listening
• Communicate clearly
• Humour them
• Don’t complain / blame.
• Empathize
• Be creative
• Use “WE” instead of “I”
• Make use of power words.
• Give positive strokes.
Interpersonal Skills
• Healthy interpersonal skills reduce stress, reduce conflict,
improve communication, enhance intimacy, increase
understanding, and promote joy.
• There are just six interpersonal skills which form a process that is
applicable to all situations:
– Analyzing the situation
– Establishing a realistic objective
– Selecting appropriate ways of behaving
– Controlling your behavior
– Shaping other people's behavior
– Monitoring our own and others' behavior
Improving IPS….
1. Communication Skills: Communion demands
that we listen as well as speak
2. Assertiveness Skills :Expressing yourself and your
rights without violating the rights of others
3. Conflict Resolution: Conflict is natural and inevitable.
Conflict Resolution helps you resolve differences so that
you may continue with the relationship in an effective way.
4. Anger Management: Knowing how to recognize and express anger
appropriately can help us to reach goals, handle emergencies, solve
problems and even protect our health.
Interpersonal Skills Result In
 Understanding OB helping to
determine manager effectiveness
 Leadership and communication
skills that are critical as a person progresses in a career
 Lower turnover of quality employees
 Higher quality applications for recruitment
 Better financial performance
The Major Behavioral Science Disciplines-
Contribute to OB
• Organizational behavior is an applied behavioral science that is built
upon contributions from a number of behavioral disciplines.
Major Contributing Disciplines to the field
of organizational Behavior
1. Psychology: how individuals behave in response to
a stimulus. Psychology is the science that seeks to measure, explain, and
sometimes change the behavior of humans and other animals.
2. Sociology: how individuals relate to groups and to each other..
Sociologists study the social system in which individuals fill their roles;
that is, sociology studies people in relation to their fellow human beings
3. Social Psychology: How individuals and organizations perceive
conflict, threats and undergo stress. Social psychology blends the
concepts of psychology and sociology
4. Anthropology: understanding customs traditions and social morals of
people since the organization is a microcosm of the larger society.
Anthropology is the study of societies to learn about human beings and their
activities.
Contd
5. Political Science: Understanding Power, Authority
and Corporate Politics.
6. Economics: Appreciating monetary (wage and

bonus) and non monetary incentives (housing,
schooling and medical care) to employees so that they
are motivated to produce more efficiently and effectively.
WHAT MANAGERS DO ?
Manager’s Functions, Roles And Skills
WHAT MANAGERS DO ?
1. Manager: Someone who gets things done through other people in

organizations.
2. Organization: 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.
3. Planning, organizing, leading, and controlling are the most often studied.
Mintzberg concluded that managers perform ten different, highly interrelated

roles or sets of behaviors attributable to their jobs.
WHAT MANAGERS DO ?
• Management Skills
 Technical Skills--The ability to apply specialized knowledge or expertise. All
jobs require some specialized expertise, and many people develop their
technical skills on the job.
 Human Skills--Ability to work with, understand, and motivate other people,
both individually and in groups, describes human skills.
 Conceptual Skills--The mental ability to analyze and diagnose complex
situations.
WHAT MANAGERS DO ?
Luthans and associates found that all managers engage in

four managerial activities.
• Traditional management.
• Communication.
• Human resource management.
• Networking.
The Challenges and Opportunities of OB
Concepts
•Responding to Economic Pressure
•I n economic tough times, effective management is an asset.
•I n good times, understanding how to reward, satisfy, and retain
employees is at a premium. In bad times, issues like stress, decision
making, and coping come to the fore.
•Responding to Globalization
• Increased Foreign Assignments
• Working with People from Different Cultures
Concepts
•Managing Workforce Diversity
• Workforce diversity acknowledges a
• workforce of women and men;
• many racial and ethnic groups;
• individuals with a variety of physical or psychological abilities;
• People who differ in age and sexual orientation.
•Improving Customer Service
•Today the majority of employees in developed countries work in service
jobs.
•Employee attitudes and behavior are associated with customer satisfaction
Concepts
•Improving People Skills
•People skills are essential to managerial effectiveness.
•O B provides the concepts and theories that allow managers to predict
employee behavior in given situations.
•Stimulating Innovation and Change
• Successful organizations must foster innovation and master the art of
change.
•Employees can be the impetus for innovation and change or a major
stumbling block.
•Managers must stimulate employees’ creativity and tolerance for
change
Concepts
•Working in Networked Organizations
•Networked organizations are becoming more pronounced.
•Manager’s job is fundamentally different in networked
organizations. Challenges of motivating and leading “online”
require different techniques.
•Helping Employees Balance Work-Life Conflicts
•The creation of the global workforce means work no longer sleeps.
•Communication technology has provided a vehicle for working at
any time or any place.
•Employees are working longer hours per week.
Concepts
• The lifestyles of families have changed— creating conflict.
• Balancing work and life demands now surpasses job security as
an employee priority.
• Creating a Positive Work Environment
• Organizations have realized creating a positive work environment
can be a competitive advantage.
• Positive organizational scholarship or behavior studies what is
‘good’ about organizations.
• This field of study focuses on employees’ strengths versus their
limitations as employees share situations in which they
performed at their personal best.
Concepts
 Improving Ethical Behavior
 Ethical dilemmas are situations in which an individual is
required to define right and wrong conduct.
 Good ethical behavior is not so easily defined.
 Organizations are distributing codes of ethics to guide
employees through ethical dilemmas.
 Managers need to create an ethically healthy climate.
History of OB
• A structured social system consisting of groups of individuals
working together to meet some agreed on objectives.
Organizational Behaviour can be understood at three levels
1. Individuals
2. Groups
3. Organization
Early Practices – Adam Smith (1776)
Proposed Division of Labour
• Adam Smith famously said in The Wealth of Nations that the division of labor is limited
by the extent of the market. This is because it is by the exchange that each person can be
specialized in their work and yet still have access to a wide range of goods and services.
• In a division of labor, the production process is broken down into a sequence of stages,
and workers are assigned to particular stages.
This led to
• Monotony in work: A worker has to do the same small task again and again. ...
• Lack of responsibility: A worker performs only a part of the total job. ...
• Greater interdependence:
• Loss of job pride: ...
• Reduced mobility of labor:
Charles Babbage (1832)
British Mathematics Professor
• Wrote on the economy of “ Machinery & Manufacturers”
• Proposed advantages of division of labour
• Reduces time needed to learn a job
• Reduces waste of material
• Matching skills with abilities of job
The Classical Era – Scientific Management
Frederick Taylor
• Developed a science for each individual area of work
• Scientifically select, train , teach and develop worker
• Cooperation with workers
• Divide work responsibility between workers and management
Hawthorne Studies
The Hawthorne studies were conducted in order to find out
the role of human resource in increasing the production of an
organization.
The Hawthorne studies included the following experiments..

Experiments Conducted
• Illumination Experiment
• Relay Assembly Test Experiments
• Mass Interviewing
• Bank Winning Observation
HAWTHORNE EXPERIMENT
Conducted between 1924-1934
Conducted at WESTERN ELECTRIC COMPANY, Chicago, USA
Conducted by,
 Elton Mayo
White Head
Roethlisberger
Elton Mayo and Hawthorne Studies
• Elton Mayo : Believed emotional factors were more important
determinants of productive efficiency than were physical and logical
factors.
• Conducted the Hawthorne Experiments : Demonstrated the

importance of understanding how the feelings, thoughts, and
behavior of work-group members and managers affect performance
Hawthorne Studies
 The Hawthorne studies were carried out by
the Western Electric company at their
Hawthorne plant in the 1920's.
 Ten year study
 1924 - Chicago
 Research focus: Relation of quality and
quantity of illumination to efficiency in
industry
 Four Important Studies
o Illumination study
o Relay assembly test room study
o Interviewing program
o Bank wiring room observation study
The Hawthorne Studies
 Illumination Study (November 1924)
 Designed to test the effect of lighting intensity on worker productivity .

 Experiment indicated that Productivity increased when studies were on and slumped when
the study got over as workers were motivated due to the interest shown by management .
 The mere practice of observing people’s behavior tends to alter their behavior and is called
(Hawthorne Effect)
 This formed the basis of the Further Experiments done by Mayo .

Relay Assembly Test Room Study (1927-
1932)
 Assembly of telephone relays (35 parts - 4 machine screws)
Researchers spent five years measuring how different variables impacted the group's and
individuals' productivity. Some of the variables were:
• changing the pay rules so that the group was paid for overall group production, not individual
production
• giving two 5-minute breaks (after a discussion with them on the best length of time), and then
changing to two 10-minute breaks (not their preference). Productivity increased, but when they
received six 5-minute rests, they disliked it and reduced output.
• providing food during the breaks
• shortening the day by 30 minutes (output went up); shortening it more (output per hour went
up, but overall output decreased); returning to the first condition (where output peaked).
Relay Room Experiment
 Production and satisfaction increased regardless of IV manipulation (pay rate , break interval ,
meals , hours of work )
 Workers’ increased production and satisfaction related to supervisory practices
 Human interrelationships are important contributing factors to worker productivity
 Bottom Line: Supervisory practices increase employee morale AND productivity
• What Really Increased the Productivity?

• choosing one's own coworkers, working as a group, being treated as special (as
evidenced by working in a separate room), and having a sympathetic supervisor
were the real reasons for the productivity increase
Interviewing Program (1928-1930)
 Investigate connection between supervisory practices and employee morale

 The results proved that upward communication in an organization creates a positive attitude
in the work environment.
 The workers feel pleased that their ideas are being heard.
Bank Wiring Experiment
• The purpose of the next study was to find out how payment incentives would affect
productivity.
• The surprising result was that productivity actually decreased, because the men
were afraid that the company would lower the base rate and had a clear idea of a fair
day’s work .
• Workers apparently had become suspicious that their productivity may have been
boosted to justify firing some of the workers
• Done on group of fourteen men who put together telephone switching equipment.
• There was existence of informal groups or "cliques" within the formal groups. These
cliques developed informal rules of behavior as well as mechanisms to enforce them.
The cliques served to control group members and to manage bosses; when bosses
asked questions, clique members gave the same responses, even if they were untrue.
Bank Wiring Experiment
• What Really reduced the
productivity ?
• Workers were more responsive to the social

force of their peer groups than to the control
and incentives of management.
• Conclusion: Social groups can influence

production and individual work behavior.
Informal organization constrains employee
behavior within formal organizational
structure
Implications of Hawthorne Studies
 Illumination Study (November 1924)
 The mere practice of observing people’s behavior tends to alter their behavior (Hawthorne Effect)
 Relay Assembly Test Room Study (1927-1932)
 Relationships between workers and their supervisors are powerful
 Human interrelationships / informal group increase the amount and quality of worker participation in
decision making
 Interviewing Program (1928-1930)
 Demonstrated powerful influence of upward communication
 Workers were asked for opinions, told they mattered, and positive attitudes toward company increased
 Bank Wiring Room Observation Study (November 1931 - May 1932)
 Led future theorists to account for the existence of informal communication
 Taken together, these studies helped to document the powerful nature of social relations in the workplace
and moved managers more toward the interpersonal aspects of organizing.
Classical Organization Theory
Administrative Theory
French Industrialist Henry Feyol proposes that a manager plans,
organizes and directs, controls & coordinates
14 principles of management including division of labour, authority,
unity of command, initiative
Classical Organization Theory
Max weber Chester Barnard

Structural Theory – Social systems Theory-
Described bureaucratic structure Organization made up of people
Division of labour clearly who have interacting social
described hierarchy relationships
Detailed rules and regulations and They communicate
Impersonal relationships Success depends on maintaining
good relations.
Behavioural Era
Hugo Munsterberg –
Published Psychology and
Industrial efficiency
Saw link between scientific
management and industrial
psychology
Suggested use of psychological
tests
Behavioural Science Theories
• Moreno- Sociometry for studying group interactions

• Skinner- Operant conditioning
• McClelland Theory – Need Theory
• Fiedler- situational theory of Leadership
FROM HUMAN RELATIONS TO
BEHAVIORAL SCIENCE APPROACH
• Human relations is frequently used as a term to describe the ways in which
the managers interact with their employees.
• The behavioral science approach emerged since the classical approach did
not achieve sufficient production efficiency and work place harmony.
• Thus there was more interest in helping the managers to deal more
effectively with people side of their organization.
• This approach thus evolved from the Hawthorne experiments.
• The later researchers more rigorously trained in the social science
(psychology, sociology and anthropology) used more sophisticated research
methods and came to be known as behavioral scientists rather than the
human relations theorists.
Management Science Perspective : MODERN THEORY
● Quantitative Management
● Systems Theory
● Contingency Theory
MODERN
THE QUANTITATIVE MANAGEMENT APPROACH THE SYSTEMS APPROACH
• During World War II, mathematicians,
physicists, and other scientists joined • Taken from a Greek word which
together to solve military problems. means to bring together or to
• The quantitative school of management is a combine.
result of the research conducted during • Father of systems approach: Ludvig
World War II.
• The quantitative approach to management
von Bertalanffy.
involves the use of quantitative techniques, • According to Ludvig Von
such as statistics, information models, and Bertalanffy, “In order to
computer simulations, to improve decision
making. This school consists of several understand an organized whole,
branches, described in the following sections we must know both the parts as
using mathematics, statistics etc well as relations between them.”
ENVIRONMENT
SYSTEM
INPUTS TRANSFORMATION OUTPUTS
PROCESS
• Raw material • Employees’ work • Production and

• Human resource activities services
• Capital • Management • Financial results
• Technology activities • Human results
• Information • Technology and • Information
operations
methods
FEEDBACK
Open system view of an organization

CONTRIBUTIONS OF SYSTEMS
APPROACH TO MANAGEMENT
• Under systems approach, managers have a good view of the
organisation.
• It gives importance to interdependence of the different parts of an
organisation and its environment.
• It foretastes consequences and plans actions.
• Systems thinking warns managers against adopting piecemeal
approach to the problem-solving.
Contingency Perspective
NO ONE “ BEST WAY” TO MANAGE PEOPLE

Meaning of contingency view
(Also known as situational view)
• It emphasizes that there is no best way to manage. It is an “it all
depends” approach.
• The appropriate management actions and approaches depend on the
situation.
• Managers with a contingency view use a flexible approach, draw on a
variety of theories and experiences, and evaluate many options as
they solve problems.
• It tries to identify the best technique that will be effective in a
particular situation at a particular time.
• This attempts to integrate all the management approaches.
Features of contingency approach
• In the contingency perspective, managers are faced with the task of
determining which managerial approach is likely to be most effective
in a given situation.
• Contingency thinking avoids the classical “one best way” arguments
and recognizes the need to understand situational differences and
respond appropriately to them.
• Contingency theory is a recognition of the extreme importance of
individual manager performance in any given situation.
• The contingency approach is highly dependent on the experience and
judgment of the manager in a given organizational environment.
Management Perspectives Over Time
2000
The Technology-Driven Workplace
1990 2010
The Learning Organization
1980 2010
Total Quality Management
2000
1970
Contingency Views
1950 2000
Systems Theory
2000
1940
Management Science Perspective
1930 1990
Humanistic Perspective
1890 1990
Classical
1940 2010
1870
66
UNIT 2 – Individual level Processes
INDIVIDUAL BEHAVIOUR
 An organization is basically the association of human beings.
 Major problem of today’s organization is how to get maximum
possible efforts and contributions of the human beings determining
these efforts and contributions.
 Those responsible for managing the organization must understand
the way human beings behave.
 It is to be noted that the world of human work consists of individual
performing jobs in some setting, usually in some organization.
• The fact that there are tremendous differences among individuals and
among jobs is the basis of the frequently expressed notion of
“matching” people and jobs and of the expression “round pegs in
square holes” when the “match” is not a good one. Mismatches can
occur in any setting
• Individual behavior means some concrete action by a person.

• The behavior of an individual is influenced by various factors, some
of the factors lie within himself like his instincts, personality traits,
internal feelings etc.. While some lie outside him comprising the
external environment of which he is part.
FOUNDATION OF INDIVIDUAL BEHAVIOUR
• Personal factors
• Psychological factors
• Organizational systems and resources
• Environmental factors
Variables influencing Individual Behavior
The Person
Skills & abilities The Environment
Personality Organization
Perceptions Work group Behavior
Attitudes Job
Values Personal life
Ethics
71
FACTORS INFLUENCING INDIVIDUAL BEHAVIOR
• Personality
• Ability
• Perception
• Motivation
• Socio-cultural factors
• Organizational factors
Personal Factors
• Age - Age has impact on performance, turnover, absenteeism,
productivity and Satisfaction level
• Education - : Increased levels of education serve to increase an
individual’s expectation about positive outcomes (general and
specialized)
• Abilities- Ability refers to an individuals capacity to perform various
tasks in a given job (intellectual and physical). Employee
performance is enhanced when there is ability-fit job
• Marital Status - it has impact on absenteeism, turnover & satisfaction
Personal Factors
 Number of Dependents: There is a correlation between number of dependents
and absenteeism and satisfaction
 Creativity : Creativity refers to the cognitive activity that results in a new or
novel way of viewing or solving a problem. They have three attributes of
background experience, personal traits and cognitive abilities (analytical skills)
 Emotional Intelligence: Emotions are an effective state of consciousness in
which joy, sorrow, fear, hate, love, surprise, and anger is expressed. Emotions
have impact on Mood, performance, Features are: Emotions are highly
focused, expressions of emotions is universal and Culture determines
expression of feelings. Emotional Intelligence helps us to monitor our
emotions
Psychological Factors
• Personality
• Perception
• Attitude
• Values
• learning
Environmental Factors
• Economic Factors: All work is performed within economic
framework, that both directly and indirectly, impinges on an
organizational environment. Various factors like employment
opportunities, wage rates, economic outlook and Technological
change
• Cultural Environment: Cultural environment is made up
of institutions and other forces that affect society’s basic values,
perceptions, work ethics, achievement needs and effort- reward
expectations, values preferences and behavior
Environmental Factors
• Ethics and Social Responsibility: Ethics refers to a system of moral
principles; a sense of right and wrong and goodness and badness of actions and
the motives and the consequences of these actions. Social Responsibility or
Corporate social Responsibility is understood as the obligation of decision
makers to take actions that protect and improve the welfare of the society as a
whole, along with their own interest
• Political Factors: The stability of Government tends to have impact on

employment opportunities and these, in turn, impact employee behavior. The
political ideology of a country affects individual behavior primarily through the
relative freedom available to the citizens
Organizational Systems & Resources
• Facilities: Like lighting, ventilation, air-conditioning, décor,
space for employees, secretarial support
• Organizational structure & Design: The behavior &
performance of an individual is influenced by where that person
fits into the overall structure & design of the organization
• Leadership: A leader provides direction, assistance, advice and
coaching to individuals, due to which a system of leadership and
supervision is necessary as it is a potential source of influence
Organizational Systems & Resources
• Reward System: The behavior and performance of an

individual is influenced by the reward system of his or her
organization
• Work related behavior: The five stages of the individual’s

stay in the organization may be distinguished by joining in the
organization, remaining with the organization, maintaining work
attendance, performing required tasks & exhibiting organizational
citizenship
Personal Factors
1) Age Psychological Factors
2) Education 1) Personality
3) Abilities 2) Perception
4) Marital Status 3) Attitudes
Founda 5) Number of Dependents 4) Values
tions 5) Learning
6) Creativity
7) Emotional Intelligence
of
Individ Individual Behavior

ual
Behavi Organizational Systems & Resources

or Environmental Factors
1) Physical Factors
1) Economic
2) Organizational structure & design
2) Social norms & cultural values
3) Leadership
3) Ethics & social Responsibility
4) Reward System
4) Political
5) Work related behavior
80
TERMINAL VALUES (T) TERMINAL VALUES (T)
A Comfortable Life Social Recognition
Equality True Friendship
An Exciting Life Wisdom
Family Security A World at Peace
Freedom A World of Beauty
Health Pleasure
Inner Harmony Salvation
Mature Love Self-Respect
National Security A Sense of Accomplishment
INSTRUMENTAL VALUES (I) INSTRUMENTAL VALUES (I)

Ambitious Independent
Broad-minded Intellectual
Capable Logical
Clean Loving
Courageous Loyal
Forgiving Obedient
Helpful Polite
Honest Responsible
Imaginative Self-controlled
WHAT IS PERSONALITY?
•Personality.
- The overall profile or combination of characteristics that capture
the unique nature of a person as that person reacts and interacts
with others.
- Combines a set of physical and mental
• characteristics that reflect how a person looks, thinks, acts, and
feels.
• - Predictable relationships are expected between people’s personalities
and their behaviors.
PERSONALITY TRAITS
Openness
The big 5
personality
traits CONSCIENTIOUSNESS
PERSONALITY Extraversion
TRAITS
Agreeableness
Neuroticism
Types of Personality
• Personality type theory aims to classify people into distinct
CATEGORIES. i.e. this type or that. Personality types are
synonymous with "personality styles".
• Types refers to categories that are distinct and discontinuous.
• e.g. you are one or the other. This is important to understand,
because it helps to distinguish a personality type approach from a
personality trait approach, which takes a continuous approach.
• Type A personality
• Type B personality
Meyer Friedman, an American cardiologist, noticed in the 1940's that
the chairs in his waiting room got worn out from the edges. They
hypothesized that his patients were driven, impatient people, who
sat on the edge of their seats when waiting.
They labelled these people "Type A" personalities. Type A

personalities are workaholics, always busy, driven, somewhat
impatient, and so on.
Type B personalities, on the other hand are laid back and easy
going."Type A personality" has found its way into general parlance.
FEATURES OF PERSONALITY
TRAITS
FEATURES OF PERSONALITY TRAITS
•Personality trait is basically influenced by
•two major features:
 Inherited characteristics
 Learned characteristics
FEATURES OF PERSONALITY TRAITS
INHERITED CHARACTERISTICS
The features an individual acquires from their parents or forefathers

The gifted features an individual possesses by birth is considered as
inherited characteristics.
 It consists of the following features:
• Color of a person’s eye
• Religion/Race of a person
• Shape of the nose
• Shape of earlobes
LEARNED CHARACTERISTICS
Nobody learns everything by birth. First, our school is our home, then
our society, followed by educational institutes.
The characteristics an individual acquires by observing, practicing,
and learning from others and the surroundings is known as learned
characteristics.
Type
Theory
Humanistic Trait
Theory Theory
Types of
Personality
Social Psycho-
Learning
Theory analytic
Theory
90
Social – Cognitive Theory - Reciprocal Determinism
• Bandura proposed the idea of reciprocal determinism, our behavior,

cognitive processes, the situational context , all influence each other
Social – Cognitive Theory – Self Efficacy
• Self efficacy – someone’s level of confidence in their own abilities
People with high self efficacy believe
• Their goals are with in reach
• Have a positive view of challenges
• Develop strong commitment to the activities in which they are
involved
• Quickly recover from set backs
Attitude is everything
ATTITUDE & JOB SATISFACTIION
Attitude
Attitudes are relatively stable clusters of feelings,

beliefs, and behavioral dispositions(or intentions)
towards some specific objects
Attitudes
 Evaluative statements or judgments concerning
objects, people, or events.
 Cognitive component; opinion or belief segment of an

attitude.
 Affective component; emotional or feeling of an

attitude.
 Behavioral component: behave in a certain way

Formation of attitude
 Direct experience with the object.
 Association.
 Family and peer groups.
 Neighborhood.
 Economic status and occupations.
 Mass communications
Types of attitudes
Job-satisfaction-person is gratified or fulfilled by his or
her work, Pleasurable and positive emotional state,
less absenteeism, low turnover
 Job-Involvement
 Organizational commitment
Ways of changing attitude
 Providing new information.
 Use of fear.
 Influence of friends or peers.
 The co-opting approach.
 Barriers to change—cognitive dissonance, prior commitments

and insufficient information
Attitudes and OB
 Attitudinal influences on behavior
 Attitudinal influence on perception

Values and attitudes similarities
 Both influence the cognitive process and
behavior.
 Both are learned and acquired.
 Both are resistance to change.
 Both have reciprocal influence and are used

interchangeably
Values and attitudes similarities
 Both influence the cognitive process and
behavior.
 Both are learned and acquired.
 Both are resistance to change.
 Both have reciprocal influence and are used

interchangeably
Differences
Values Attitudes
 Represent judgment of  Represent predispositions to

what ought to be respond.
 Single belief that guides  Several beliefs focused on a

actions specific action.
 Derived from social and  Personal experiences

cultural mores
CASE SITUATION
 Ram Kapoor CEO of Green Impact Consulting gets a phone call from Hari
 Green Impact Consulting was founded 4 years ago
 When it was 2 years old Hari, friend and former right hand of Ram started working with green
impact.
 With more than 8 years of Hari’s experience the company began to really take off well
 Hari left Green Impact consulting after working there for 2 years. After initial troubles the
business has picked up well and is in a great condition
 Now one year after his departure Hari calls Ram and wishes to rejoin.
 Hari had quit the job to join one of the competitor(Sustainable Build Group) but while resigning
he stated that he is leaving due to personal issues.
 After Hari’s conversation with Ram he got to know that Hari left as he was given increased salary
and opportunity to travel.
 Now he wanted to join back Ram as he misses the culture at Green Impact and the present
company is quite overloading for him and the job is no more challenging.
 In Hari’s absence when company faced low’s two employees Preeti Das and Tuli Khanna stepped
up and managed after Ram gave them intensive training as they were less experienced
 Both Fulfilled the Void that they had left.
 Also Ram is confused as he has expansion Plans in Middle East but was unsure if his young team
could keep the Business Thriving – With Hari he could Revive his dreams -
Q SHOULD RAM TAKE BACK
HARI?
PERCEPTION
•“ WE DON’T SEE THINGS AS THEY ARE, WE SEE THINGS AS WE
ARE.”
Perception
Process of receiving, selecting, organizing, interpreting, checking
and reacting to sensory stimuli or data
Perceptual process
PERCEIVER
RECEIVING SELECTING ORGANISING
REACTING CHECKING INTERPRETING
SITUATION
Why should managers study perception?
• The larger the size of the organization, more alienation amongst the
employees.
• People by nature do not want to work, so they have to be either
controlled or motivated to the work
• Becomes important for the managers to improve their perceptual
accuracy.
• Managers must think before making judgments rather than jumping
to conclusion.
Factors influencing perception
Factors in the individual
Attitudes
Motives
Interests
Experience
Expectation
Factors in the situation
Time
Work setting PERCEPTION
Social setting
Factors in the target

Novelty
Motion
Sounds
Size & Background
Proximity
Similarity
Attribution theory
• When individuals observe behavior, they attempt to determine
whether it is internally or externally caused
• Internally- believed to be under the personal control of the individual
• Externally-forced into the behavior by the situation
Error and biasness in Perception
• Attribution error
• Stereotyping
• Selective perception
• Halo effect
• Horn effect
• Recency Effect
• Primary Effect
• Contrast effects
• Projection
• Self fulfilling Prophecy Cycle- Pygmalion and Golem
• Self-serving bias
• Perceptual defense
Error and biasness in Perception
• Attribution error- tendency to underestimate the influence of external
factors and overestimate the influence of internal factors at the time
of making judgment
• Stereotyping-judging someone on the basis of one’s perception of the

group to which that person belongs
Shortcuts in judgment
• Selective perception— selective perception is a form of bias because we
interpret information in a way that is congruent with our existing values and
beliefs
• Halo effect— one outstanding quality or accomplishment takes precedence
over any negative attributes the person may exhibit.
• Horn effect – Based on one negative quality we assume the person is bad. We
perceived the whole person based on one negativity trait.
• Recency Effect – when the most recent information influences our judgement
even though we have a whole of information about the person.
• Primary Effect – Tendency to form a judgement/ opinion quickly based on the
first impression you received ( later you may receive other information)
Contd..
• Contrast effects- evaluation of a person characteristics that are
affected 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

• Self fulfilling Prophecy Cycle – Self-fulfilling prophecies occur when
the initial beliefs of one person (the perceiver) about another person
(the target) lead the perceiver to act in ways that cause the target to
confirm the perceiver's beliefs with their behavior.
Contd..
• Self-serving bias- attribute their own success to internal factors and
putting the blame for failures on external factors
• Perceptual defense- an individual is likely to put a defense when

confronted with conflicting, unacceptable or threating stimuli
Motivation
MOTIVATION
• There is an old saying “You can take a horse

to the water but you cannot force it to drink; it
will drink only if it's thirsty - so with people”.
They will do what they want to do or otherwise
motivated to do. They must be motivated or
driven to it, either by themselves or through
external stimulus.
The process that account for an individual’s
intensity, direction and persistence of effort
toward attaining .
The meaning of motivation
Motivation is the driving force within individuals by

which they attempt to achieve some goal in order to
fulfil some need or expectation
The degree to which an individual wants and

chooses to engage in certain behaviour
Psychological Contract: A Set of
Employment Expectations
 Contributions:
 What does each employee expect to
contribute to the organization?
 Inducements:
 What will the organization provide to
each employee in return?
Motivational cycle
Need, Drive
Relief
Instrumental
Goal
Motivation in Organizations
• motivation is not:
• directly observable
• the same as satisfaction
• always conscious
• directly controllable
Four Drive Theory
• Drive to take/keep objects and

Drive to Acquire experiences
• Basis of hierarchy and status
• Drive to form relationships and

Drive to Bond social commitments
• Basis of social identity
• Drive to satisfy curiosity and

Drive to Learn resolve conflicting information
• Need to protect ourselves

Drive to Defend • Reactive (not proactive) drive
• Basis of fight or flight
Theories of Motivation
1. Content Theories - What Motivates Us- what arouses u, energises u,
starts your behaviour If I want to motivate u I need arouse on ur
need – vacuum
2. Focus on indidual needs and behaviour
3. Individual needs – anxieties and worries – energised beh towards
needs
- Maslow’s Hierarchy of needs *
- Herzberg’s two Factor Theory*
- McClelland’s theory of needs *
- Alderfer’s ERG Theory
Theories of Motivation
2. Process Theories - focus on Cognitive processes that influence your
behaviour. Why a person behaves in a particular manner. Cognition
means knowledge.eg ur thoughts
- Skinners Reinforcement Theory
- Vroom’s Expectancy Theory *
- Adam’s Equity Theory*
- Locke’s Goal Setting Theory *
Maslow’s Hierarchy of Needs
• In order to better understand what motivates human beings, Maslow
proposed that human needs can be organized into a hierarchy.
• This hierarchy ranges from more concrete needs such as food and
water to abstract concepts such as self-fulfillment.
• According to Maslow, when a lower need is met, the next need on the
hierarchy becomes our focus of attention.
• In this theory, higher needs in the hierarchy begin to emerge when
people feel they have sufficiently satisfied the previous need.
Physiological Needs - The basic physiological needs are probably fairly
apparent—these include the things that are vital to our survival. Some
examples of physiological needs include:
• Food, Water, Breathing, Homeostasis
• In addition to the basic requirements of nutrition, air and
temperature regulation, the physiological needs also include such
things as shelter and clothing. Maslow also included sexual
reproduction in this level of the hierarchy of needs since it is essential
to the survival and propagation of the species.
Safety Needs - As we move up to the second level of Maslow’s hierarchy of
needs, the requirements start to become a bit more complex. At this level,
the needs for security and safety become primary.
• People want control and order in their lives. So, this need for safety and
security contributes largely to behaviors at this level. Some of the basic
security and safety needs include:
• Financial security, Health and wellness, Safety against accidents and
injury
• Finding a job, obtaining health insurance and health care, contributing
money to a savings account, and moving into a safer neighborhood are all
examples of actions motivated by the security and safety needs.
Herzberg’s Motivation-Hygiene Theory
 Two independent scales:

 Satisfaction and No Satisfaction
 These are the motivators
 Dissatisfaction and No Dissatisfaction
 Hygiene or maintenance factors
Frederick Irving Herzberg’s Two- Factor Theory
Contrasting Views of Satisfaction-Dissatisfaction
Herzberg’s Motivation-Hygiene Theory –
critical Analysis
• This theory draws attention to the job factors which are usually overlooked when we look
at motivating employees
• This theory also looks at some limitations
• It looked at the methodology – limitation was that the survey was limited to engineers
and accountants only
• Moreover respondents were asked to respond what they liked and disliked about the job
• They is a general tendency of people to take credit of good things and blame others for
bad things ie. Failures
• The theory largely describes job satisfaction and not motivation
• Did not take into consideration the impact of situational factors on motivation
• The two factors given by Herzberg namely hygiene factors and motivators are not distinct
from each other. They both contribute to job satisfaction & dissatisfaction
Herzberg’s Motivation-Hygiene Theory
Alderfer’s ERG Theory of Motivation
Existence
Relatedness Growth
All needs are operative at one time

M. Paul ALDERFER’S ERG THEORY
• Developed by Clayton Alderfer.
• Collapses Maslow’s five categories into three categories: existence needs, relatedness needs, and growth
needs.
• Adds a frustration-regression hypothesis.
• More than one need category may be activated at the same time.
ERG THEORY
• Existence needs: Desire for physiological and material well-being.
• Basic needs – physiological and safety needs
• Relatedness needs: Desire for satisfying interpersonal relationships. And social interactions
• Social and self esteem needs
• Growth needs: Desire for continued personal growth and development.
• Self actualization , personal development and achievement

ERG THEORY
• Research evidence on ERG theory:
• Supporting evidence is encouraging.
• Addition of frustration/regression hypothesis is a valuable contribution.
• Offers a more flexible approach to understanding human needs.

McClelland’s theory of needs
• David McClelland’s motivation theory, which is more formally known as the
Expectancy Value Theory of Motivation, states that humans have a total of three
core types emotional needs, which they acquire as a result of their life journeys.
• He introduced this theory in 1960 in his
book "The Achieving Society”
As per him individual possess 3 needs that
Are not innate(natural). They learnt through
Culture, age & experiences
1. Achievement (getting things done)
2. Power (having influence over others)
3. Affiliation (having good relationships
McClelland’s theory
• These are motivators present in different degrees
• The different needs bring different strengths, weaknesses, preferred
ways of working and behavioral risks into the workplace.
• Awareness of your own needs can help you improve your own self-
awareness, self-management and decision-making. Similarly, knowing
the needs of the people you work with (or for) can help you manage
them more effectively.
• While many people may have a sense of their own needs, most
people chose not to fully reveal them to others. McClelland uses an
iceberg analogy to explain this.
• What we see of others, the bit above the surface, is based on what
they do and includes their knowledge, skills and behaviors.
• The things that we don’t see, the bit below the surface, is their true
underlying self. This includes their motives, personality
characteristics, values, beliefs and self-opinions.
• Most individuals have a dominant emotional need. The emotional
need which is dominant will help shape an individual’s feelings,
actions and behaviors. It will also go some way towards shaping their
preferences in the working environment.
Types of Needs
1. Need for Achievement – Need for excellence. Desire to do better, solve problems
or master complex problems, achieve differently
Characteristics
• They are challenging
• Love working alone or with other achievers
• Self motivating
• Like feedback to assess their progress
• Get recognition
• Risk takers
• Devoted towards excellence
• They are task oriented and future oriented ( satisfaction for achievement)
Types of Needs
2. Need for Power – It is the desire to control others and influence their Behaviour. In such a manner
that people accept them
They like to control others
• Are argumentative
• Over ambitious
• Lower hierarchy to higher – one level to another
• Ability to influence others
• Suitable for leadership roles
• Desire to beat competitors
• Change other people according to them
• They want to create impact other people
• Two ways of expressing Power Need – Aggression / Dominance – undue advantage of post. They
follow win-lose approach. They just want to get success, the manager might success but team is in
loss. Dissatisfaction and negative impact
• Influence/ Interaction/ persuasion – Manager wants to show power through communication, taking
care of thoughts and feelings of others – Good strategy – develops confidence and commitment
amongst members through interpersonal influence and explain what is expected which develops
confidence and group goals are achieved
Types of Needs
3. Need for Affiliation – Desire for friendly and warm relationships with others
• They are concerned in being liked
• They form informal relationships
• They are cooperative
• These people perform better in Teams
• Reduce high risk and uncertainty
• More importance to human relation rather than doing the day to day task
• They like to create a conducive environment
• Like jobs that involve more interaction
• Good at client interactions
• All three needs are important to excel at workplace.
• To survive achievement need is required to excel. Student with high achievement
need will do well in exams. In org manager tries to make his org best organization.
When manager uses the right power need, will help organization to ahead.While
working in org affiliation makes all the difference as you are working with human
resources because if environment is good everything will be good.
• All is important but it depends on the manager what he uses
• Achievement for good work / org going Power is imp to get the work done/ drastic
change and you should not hurt people / positive environment
• Integration of all these.
• Managers should be capable of identifying needs of individuals
• Managers should motivate individuals according to their needs
High Achievement Need High Power Need High Affiliation Need
Seek personal responsibility to They like to rule so leadership roles They have social relationships with
solve problems is best for them other people and feel the need to
be accepted
They are not gamblers but set goals They get motivated by offering They tend to conform to the norms
to achieve career development opportunities of the work group
For them money is not greater They perform better in Teams
motivator, feedback and
appreciation is
They group with achievers for best
performance
Critical Analysis of McClelland’s theory of
needs
• It was appreciated as it highlighted the importance of matching the
individual needs with job variables
• Employees with high need for achievement seeks the tasks that are
challenging , satisfying, stimulating & more complex
• Whereas, employees with low need for achievement prefer tasks that
involve more stability, security & predictability,
Comparison of Content Theories
STORY
• There was a person his name was Rohit Arya, he joined APEX
computers in the month of Nov after a successful career in ZEN.
• He worked as a assistant Programmer
• He felt Apex had better career prospects
• Zen was relatively a smaller organization although he enjoyed working
there and he felt he wanted to be associated with a bigger company
to get more exposure and have international exposure
• He felt he would do well as he did in his previous company.
• He joined Apex as a senior programmer with a handsome pay hike
STORY
• Apex had great international projects and there was chance that he
even could be sent to US / UK which would give him exposure & he
was quite excited.
• He joined Aparna Mehta's 5 member team at APEX and met her
during orientation session & was looking forward working with her
• His team members seemed warm and friendly. He interacted with
team members to know them more
• He was also curious to know more about his BOSS, so he casually
asked one of his team members Deepti about aparna
STORY
• She said aparna does not interfere in our work. She tries to ignore us
as much as she can. Mind whatever is going on
• Rohit was surprised on the comment and thought Aparna might have
left them alone to do their work without guidance in order to allow
them to realize their full potential
• At Zen ( now he started comparing) Rohit had worked under Suresh
Reddy and had looked up to them as a guide. He was always guiding
but never interfering
• Here Aparna she never interfers
STORY
• Suresh had let rohit make his own mistakes learn from them,
discover their own ideas through discussions and work on them.
• He held everyone responsible if team did not perform as a
whole.(collective )
• Rohit remembered telling his colleges that the ideal boss would
be one who would not interfere with his/ her subordinates.
• Rohit wanted to believe that even Aparna was the non
interfering type. If that was the case her non interference would
only help him to grow.
• In his first week at work rohit found the atmosphere at the office
a bit dull. ( look at his thoughts)
• He was quite excited due to pay packages and going abroad
opportunities.
STORY
• His team was not assigned a project, where he was facing a few
glitches with the new software. He had thought about the problem till
late night and came up with several possible solutions.
• He could not wait to discuss it with his team & Aparna and he
imagined how aparna would take it when he would present the
solution and felt Aparna would be happy with his efforts in the project
from day 1 ( Day Dreaming) about all the praises.
• He waited for her to go to her cabin and then called her. Aparna asked
him to come after 10 mins. This was quite a disappointment to him
STORY
• When he entered she looked quite blankly towards him and asked him”yes,
tell me what can I do for u?” Rohit introduced himself but then she said
why did you want to me?
• Then Rohit stated to tell her about the problems, having with the software.
But even before he could finish “she told him, that she was busy with other
meeting”
• She said she would send solution to all the team members over email end
of the day.
• What do you think is going wrong.
• Rohit was taken aback – but to it optimistically and thought she might have
discussed with the team and knows about it
STORY
• Rohit came out and went out to tam members where
they sat and thought to talk to them what they
thought. Everyone seemed quite dis interested.
• One of his team members Saanjay said “what is your
point in discussing these things?”
• Aparna has no time to discuss and she will give
solution why waste everyone’s time. We will do what
she feels best to do.
• Rohit felt his heart was sinking that do people work like
this.He refused to lose heart. He thought he will take
time but adjust.
STORY
• As days passed, he realized Aparna was completely opposite
to his old Boss while she was efficient. She had no time to
debate or discuss. She did not ever interfere. She would just
blame her team if work was not done. She totally
disassociated herself with team whenever things went wrong
• Time and again Rohit thought of his old boss and how he was
a positive influence and Aparna how managed to lower his
motivation.
• He became very mechanical and lost his interest and he didn’t
have to think much now. His Boss has all the answers.
• He was learning nothing new. He felt his career suffered.
STORY
• His performance suffered from someone being so promising.

He was in danger of becoming a mediocre to him
Which theory is applicable here ------

What according to you are the reasons for Rohit’s
disillusionment.
Explain all three theories
1. Maslow – Social, esteem & SA not fulfilled
2. ERG – Existence but no relatedness fragile and growth – missing.
3. Herzberg – Because of pay, I joined this organization, projects in US/ UK – HYGIENE FACTORS
Motivators – appreciation ,no challenge, no excitement
What should he do to resolve the situation

Nokia
• No independent work was not given
• In teams work was given
• Target achieved Bonus was give to all 5 not one
• If one person did not work for a reason will that person be motivated/
demotivated.
• He will feel he need to give his efforts
• This managers can do to motivate their employees
Process Theories
• Process Theories:
• Deal with ‘how’ to motivate
• Focus on cognitive antecedents of motivation
• How these cognitive antecedents relate
• Major Process Theories:
- Skinners Reinforcement Theory

- Vroom’s Expectancy Theory *
- Adam’s Equity Theory*
- Locke’s Goal Setting Theory *
Organizational inducement
• Goal setting theory

• Equity theory
• Expectancy theory
Vroom’s Expectancy Theory
• Developed by Victor Vroom.
• A person’s motivation is a multiplicative function of:
• Expectancy.
• Instrumentality
• Valence.
• Expectancy: Probability assigned by individual that work effort will be followed by a given level of task
accomplishment
• Instrumentality: Probability assigned by the individual that a given level of achieved task performance will
lead to various work outcomes.
• Valence: The value attached by the individual to various work outcomes.

Overview of Expectancy Theory
Effort
Effort Performance
Performance Reward
Reward
Valence
Valenceof
of
Expectancy
Expectancy X Instrumentality
Instrumentality X reward
reward
MOTIVATION
MOTIVATION
Abilities
Abilities
and
andtraits
traits
JOB
PERFORMANCE
Simplified Expectancy Theory
Performance appraisal
system
Training and Human resources

development management
• Motivational implications of expectancy theory.
• Motivation is sharply reduced when, expectancy, instrumentality or valence approach zero.
• Motivation is high when expectancy and instrumentality are high and valence is strongly
positive.
• Managerial implications of expectancy theory.
• Managers should act to maximize expectancies, instrumentalities, and valences that support
organizational objectives.
• Research evidence on expectancy theory.
• Theory has received substantial empirical support.

• Multiplier effect is subject to some question.
• May be useful to distinguish between extrinsic rewards and intrinsic rewards.
• Does not specify which rewards will motivate particular groups of workers, thereby allowing
for cross-cultural differences.
Porter –Lawler Model
• Tries to establish relationship between the efforts, performance & satisfaction of individual.
• Important variables are:
• Effort
• Performance
• Rewards
• Satisfaction
Porter –Lawler Model
Perceived
Equitable
Value Abilities Rewards
Of &
Rewards Traits
Intrinsic
Rewards
EFFORT PERFORMANCE
SATISFACTION
Perceived
Effort Reward Role Extrinsic
Perception Rewards
Probability
Contemporary Theories
• Adam’s Equity Theory
• Management by objectives
Adam’s Equity Theory
• Workplace development by J.Stacy Adams.
• People gauge the fairness of their work outcomes in relation to others.

• Unfavorable social comparison of work outcomes Perceived inequity
• Perceived inequity people motivated to remove the discomfort.
• Negative inequity: Individual feels he/she has received relatively less than others in
proportion to work inputs.
• Positive inequity: Individual feels he/she has received relatively more than others in
proportion to work inputs
• Referent is an object of reference or individual with whom the employee compares himself.
• Referent Comparisons Used:

• Self-Inside
• Self-Outside
• Others-Inside
• Others-Outside
Equity Theory Relationships
EMPLOYEE’S
ASSESSMENT
Inequity (underrewarded)
Equity
Inequity (overrewarded)
*Person A is the employee, and Person B is a relevant other or referent.
 Has far more explanatory and predictive validity for

underreward than for overreward.
Equity Theory: A Summary and Example
INEQUITABLE
INEQUITABLERELATIONSHIP
RELATIONSHIP
Andy is Bill is
overpaid underpaid
compared to Bill compared to Andy
Bill’s outcomes
Andy’s outcomes ($25,000/year)
($30,000/year) Bill’s inputs
Andy’s inputs (40 hours/week)
(40 hour/week)
Bill feels angry

Andy feels guilty
EQUITABLE
EQUITABLERELATIONSHIP
RELATIONSHIP
Andy is equitably paid Bill is equitably paid
compared to Bill compared to Andy
Andy’s outcomes Bill’s outcomes

($30,000/year) ($30,000/year)
Andy’s inputs Bill feels Bill’s inputs
Andy feels
(40 hour/week) satisfied (40 hours/week)
satisfied
 Equity restoration behaviors.
• Change work inputs.
• Change the outcomes received.
• Leave the situation.
• Change the comparison points.
• Psychologically distort the comparisons.
• Take actions to change the inputs or outputs of the comparison person.

 Equity theory implications.
• Inequity perceptions are entirely from reward recipient’s perspective, not from reward giver’s
perspective.
• The equity process must be managed so as to influence the reward recipient’s equity
perceptions.
• Research evidence on equity theory.
• Overpayment (felt positive inequity) results in increased quantity or quality of work.
• Underpayment (felt negative inequity) results in decreased quantity or quality of work.
• Stronger support for underpayment results.

 Research evidence on equity theory — cont.
• Overpayment and underpayment results are closely tied to individualistic cultures.
• Collectivist cultures emphasize equality rather than equity.

MOTIVATION OF PERFORMANCE
• Two Approaches for motivating Performance:
• Job Design
• Goal Setting
Job Design Approach
• Job’: Grouping of tasks within a prescribed unit or units of work.
• ‘Job Design’: The process of structuring tasks and responsibilities into a job in an attempt to make the job
more meaningful, significant and satisfying.
The Job Characteristics Model
Approaches to job design
• Job engineering
• Job Enlargement
• Job Rotation
• Job Enrichment
• Quality of work life & socio-technical approach
• Measuring task scope

Guidelines for Job Redesign
Goal Setting Approach
• Goal’: The desired consequence of an action.
• ‘Human behavior is purposeful & goals direct & sustain their behavior in a particular manner’
- Locke, Wood & Mento

• Two Primary attributes:
• Content: level of difficulty involved in attaining a goal.
• Intensity: Process by which a goal is set and accomplished.
• Goals should have the following features:
• Specific
• Challenging
• Must be owned & accepted
• Must have a specific time frame
• Measurable
• Barriers to effective goal setting
• Lack of top mgmt support
• Lack of communication
• Content of the goal
• Technical incompetence
Management by Objectives
• Peter Drucker
• Performance enhancement through mutual goal setting and performance review.
• Common features:
• Goal specification
• Participative decision making
• Explicit time period
• Performance feedback
Management by Objectives
• Four Stages
• Consensus on key goals & objectives
• Sketch plan of action
• Control Behavior
• Periodic appraisal & review

Self motivation
• Do it now
• Break up the task into small steps
• Don’t wait for mood or inspiration
• Start action
• Solutions will follow if you try
MBO
 Set SMART goal
 Specific
 Participative
 Decision making
 Performance feedback
Employee involvement
 Participative management
 Representative participation
 Quality circles
 Works councils
Job redesign
 Job rotation
 Job enlargement
 Job enrichment
 Flexi time
 Job sharing
 Telecommuting
Conclusion
Motivation is an internal energy and desire to act.
Motivation is important to managers for three reasons:
It leads to action
It is one of three factors in performance.
It is variable so managers can influence motivation levels.
Findings show that a sense of accomplishment and

financial rewards have consistently motivated people
overtime.
Situation Analysis
Vikas owns two fast food shops in Gurgaon. Each shop sells
items such as burgers, pizza, sandwiches, ice creams etc.
He employees the local high school and college students to
work for him as waiters. He pays his employees on an
hourly basis. He has recently observed that they do not
process customer orders as fast as they should and
customers end up waiting a long time for the food.
There is also variation in quantity offered to customers, with
some employees serving very generous portion while others
serve very small portions, especially while serving ice-
creams and cold drinks. Vikas wants to improve customer
service and product consistency by changing the reward
structure.
Questions:
1.Identify the causes of these problems and indicate which

theory best describes the problem in the situation.
2. Identify potential solutions for the situation.

Dynamics of Organizational Behavior
• Groups & Teams in organizations
• Team Processes
• Leadership & Power
• EI
Groups
• Group – two or more

individuals, interacting
and interdependent,
who have come
together to achieve
particular objectives.
Groups - Types
• Formal Groups
• Command
• Task
• Informal Groups
• Interest
• Friendship
Groups - Formation
• Stages of Group Development

• Forming
• Storming
• Norming
• Performing
• Adjourning
Eight Characteristics of High Performing
Teams
• A clear, elevating goal.

• A results-driven structure.
• Competent team members.
• Unified commitment.
• Collaborative climate.
• Standards of excellence.
• External support & recognition.
• Principled leadership
Leadership Defined
“Leadership is the behavior of an individual when he is directing the

activities of a group towards a shared goal”.
Leadership Vs. Management
• Leadership:
The ability to influence a group towards achievement of goals.
• Management:
Use of authority inherent in designated formal rank to obtain
compliance from organization members.
Leaders Vs. Managers
Leaders Managers
Power • Personal Power • Positional Power

Action • Innovate • Administer
Potential • Develop • Maintain
Effect • Inspire • Control
Timeline • Long-term view • Short-term view
Question • Ask what and why • Ask how and when
Type • Experimental • Analytical
Status Quo • Challenge status quo • Accept the status quo
Expectation • Do the right thing • Do things right
Outcome Positive Change Order, stability, productivity
Leaders Vs. Managers
Leadership Functions Management functions
Creating an Establishes direction, vision of Plans and budgets;decides

agenda the future, develops strategies actions & allocates resources
for change to achieve goals
Developing Aligning people, communicates Organizing & staffing; decides

people vision & strategy, influences structure & deploys staff,
creation of teams which accept develops policies, procedures &
validity of goals monitoring
Execution Motivating & inspiring: Controlling, problem

energizes people to overcome solving:monitors results against
obstacles, satisfies human plan & takes corrective action
needs
Outcomes Provides positive change Produces order, consistency &

predictability
Leadership Skills
•By Robert Katz
Organizational Levels
CONCEPTUAL
Top
Middle HUMAN
Supervisor TECHNICAL
Knowledge & Skills Required

LEADERSHIP
STYLES
Likert’s Four Systems of Management
1. Exploitative- Authoritative Low concern for people
Uses Fear to get the work done

2. Benevolent Authoritative
3. Consultative Style
Has concern for people…
4. Participative Style But still uses a high degree of
authority
Makes genuine effort to listen to

The ideas…however decision
Making is still central
Actively engages the people

By involving them in the decision making
process
Leadership Styles
1. Autocratic
2. Bureaucratic
3. Democratic
4. Laissez-faire
5. Transformational
6. Transactional
7. Task Oriented
8. Servant
9. Environment
10.Visionary
Leadership Styles
Sticks to rules of the organization;

Very little room for innovation…
Typically found in conservative
Banks…universities…govt. hospitals
• Bureaucratic leader
Energizes people to work for the organization’s

Objectives…people will not accept a
New leader if a charismatic leader is
• Charismatic leader Replaced…
Has complete authority to

• Autocratic leader Make decisions…constantly
Supervises subordinates…
Typically observed in small
Time restaurants/ grocery stores
• Democratic leader Listens to the team but makes the final

Decision…most appropriate when hard
Decisions have to be made acceptable to people
PEOPLE FEEL THEY HAVE BEEN GIVEN A CHANCE
Not useful when decisions are to be made
In quick time!
Leadership Styles
ONLY appropriate when the employees

Are competent and committed;
Leaders don’t give any feedback;
Sometimes results in failing to
Meet the objectives set
• Laissez-faire (let them do)
• People oriented
Supports, trains, and
Develops employees
• Task oriented
Concentrates predominantly
On achieving specific tasks
Given to individuals
Minimal involvement of the team

When making decisions
Leadership Styles
Members use the leader as a tool to get the

Work done…team engagement is very high
Pace of outcomes is slow
The leader does not use his legitimate authority
• Servant leader Given power to get the work done through people
Using rewards and punishments…leaders train
And reward the employees for a work done
• Transaction leader
Focuses on the big picture; motivates people
To get the work done; communicates
• Transformation leader Extensively with the employees
• The environment leader

Uses the organization’s culture
And the group’s culture to motivate
• The visionary leader People…groups interact with
Each other & learn the organization’s
Culture…
Articulates & communicates

An attractive vision of the future
Of an organization
LEADERSHIP
THEORIES
Four Eras of Leadership Theory & Thinking
Trait Approach
dominant until late 1940’s - assumes leaders born, not made
inherited characteristics - personality, intelligence, ability, physical
characteristics; focuses attention on person in job
Behavior Approach
held sway until late 1960's - effects of leadership on those led,
way in which functions of leadership carried out & the behaviour adopted by
managers towards subordinates
Contingency Approach or Situational Approach

popular to 1980’s - situational factors are focus for understanding leadership,
Belief that no single style of leadership appropriate to all situations,
studies interaction between leadership variables and patterns of behaviour
New Leadership Approach

since 1980’s, leader seen as one who defines organizational reality through
articulation of a vision - which is a reflection of leaders definition of
organizations mission and values which support it
Trait Theories
Involves discerning how to be a leader by
examining the characteristics and methods of
recognized leaders.
• Great Person Theory
• Leaders are born not made.
• Some traits are particularly suited to leadership.
• People who make good leaders have the right (or
sufficient) combination of traits.
Traits of Successful Leaders
Trait/ Characteristic Description
Desire for achievement; ambition; high
Drive energy; tenacity; initiative
Honesty and integrity Trustworthy; reliable; open
Leadership motivation Desire to exercise influence over others to

reach shared goals
Self-confidence Trust in own abilities
Cognitive ability Intelligence; ability to integrate and

interpret large amounts of information
Knowledge of industry, relevant technical

Knowledge of the business
matters
Creativity Originality
Ability to adapt to needs of followers and

Flexibility requirements of situation
YOU DON’T HAVE TO LOOK LIKE
A LEADER…OR PERHAPS BE BORN
LIKE ONE! AS THE TRAITS THEORY
SUGGESTS
Behavioral Theories
Successful leadership is based in definable, learnable behavior.
Focus on what leaders actually do.
• Three Theories
• The Ohio State Studies
• The University of Michigan Studies
• Managerial Grid
Behavioral Theories
Contd..
• Ohio State Studies

• Consideration vs. Initiating structure
• "high-high" leaders
• University of Michigan Studies

• Employee vs. Production oriented
• "employee oriented" leaders
Behavioral Theories Contd..
• Managerial Grid Theory

• By Robert Blake & Jane Mouton
• "concern for people" vs. "concern for production“
• 9 x 9 Grid
• 5 leadership styles
The Managerial Grid
High
1,9 pattern 9,9 pattern
“Country club” 9
Team management-
management the ideal style
8
Concern for People 7
6
5,5 pattern
5 Middle-of-the-road
management
4
3
1,1 pattern
2
Impoverished 9,1 pattern
management 1 Task management
Low
1 2 3 4 5 6 7 8 9
Low Concern for Production High
CONTINGENCY THEORIES
• No one best way of leading
• Leader's ability to lead is contingent upon various
situational factors
• Two Contingency Models
• Hersey & Blanchard’s Situational Theory
• Path Goal Theory
EFFECTIVE LEADERSHIP
1. Set Goals for your Life not just for your Job – “ Meaning of Life”
2. Take Initiative. Volunteer to be the first, be daring, bold, brave and fearless, willing to fall
down, fail and get up again for another round
3. Be humble and give away the credit, going before others is not only the path of leading
4. Learn to Love ideas and experiments
5. Believe that beauty exists in everything and in everyone, and then go about finding it. You’ll
be amazed how little you have to invent and much is waiting to be displayed
6. Be a lifelong learner Surround yourself with mentors and people smarter than you. Seek to
be continually inspired by something.
7. Care for and about people. Compassion and empathy become you, and keep you ever-
connected to your humanity. People will choose you to lead them.
Power To Empower
Sharing Power: Empowerment
Power refers to the capacity that a person has to influence the behavior of another
person to get the latter to do something they wouldn’t otherwise do
Another positive strategy for managing political behaviour is empowerment – sharing

power within an organization.
• Jay Conger defines empowerment as “creating conditions for heightened motivation

through the development of a strong sense of personal self-efficacy”.
• This means sharing power in such a way that individuals learn to believe in their ability
to do the job
• The driving idea of empowerment is that the individuals closest to the work and to
the customers should make the decisions and that this makes the best use of
employees’ skills and talents
Empowerment Skills
• Competence skills are the first set of skills required for

empowerment.
• Empowerment requires certain process skills
• Empowerment skills involves the development of

cooperative and helping behaviors.
• Communication skills are a final set of essential

empowerment skills
Empowerment
• Is the process by which managers help others to acquire and

use the power needed to make decisions affecting
themselves and their work.
• Empowerment is a key foundation of the increasingly popular
self-managing work teams and other creative worker
involvement groups.
The Power Keys to Empowerment
• The concept of empowerment emphasizes the ability to make

things happen.
• Power is still relational, but in terms of problems and
opportunities, not individuals.
GUIDELINES FOR IMPLEMENTING
EMPOWERMENT
• Delegation of authority to lower levels should be

clear and unambiguous.
• Planning must be integrated and participative at all
levels.
• Managers at all levels, but especially the top, should
exercise
GUIDELINES FOR IMPLEMENTING
EMPOWERMENT
 Power at this stage is that at ‘an organizational level’

workplace counselors can get into a mind-set of
‘powerlessness’ and forget that, as described above, they
do have sources of power
 As Fincham and Rhodes (1992) suggest, ‘making it in an
organization means learning to navigate in the subtle and
dangerous currents that bring awards.
 Organizational Politics exist and services can be at risk if
counselors are unaware of the impact politics can have on
their ability to deliver a competent service.
 The interpersonal skills required to build good
relationships are not to be underestimated, as they ensure
that the counseling service is consulted, included in
discussions and offered relevant assignments.
French and Raven (1967) distinguish between
the following types of power:
• Reward Power: The ability to deliver positive consequences or remove

negative ones, e.g. transfers, praise, thanks, time off in lieu and performance
related pay.
• Coercive Power: The ability to mete out negative consequences or remove
positive ones, e.g. punishments, disapproval, not promoting annual reports.
• Legitimate Power : Others accept that you ought to have power over them
because of your position, e.g. your role, grade, official Power, e.g., the police.
• Referent Power: Others identify with you or want to be like you, e.g. role
models.
• Expert
• Information
• Internal
Types of Power
• Expert Power : Others see you as having some special knowledge or skill (doctors, counselors).
• Information Power: Others believe you have resources or information which will be useful to
them, e.g. messengers, networks and formal clubs.
• Internal Power: This is the power which comes from within the individual and is often called
‘personal power’. It is perhaps one of the most important sources of power because others cannot
take it away. Internal power can, however, be reduced by various forms of ‘internal blockages’;
for example, stress, illness, depression, refusal to use it, regarding the responsibility of power as too
frightening, or low self
Personal Power: Power used for personal gain
Individuals who rely on personal power at its extreme might be considered Machiavellian – willing to
do whatever it takes to get one’s own way. Niccolo Machiavelli was an Italian statesman during the
sixteenth century who wrote ‘The Prince, a guide for acquiring and using power’.
Social Power: Power used to create motivation or to accomplish group goals. McClelland clearly
favors the use of social power by managers.
Political behaviour
• Organizational politics refer to intentional behaviours that are
designed to enhance or protect a person’s influence and self-interest.
• Reasons
• Competition for Power
• Discretionary Authority
• Subjective Evaluation of Performance
• Saturation of Promotion
• Joint Decision Making
Using Power Ethically
Determining weather a power-related behaviour is ethical is
complex. Another way to look at the ethics surrounding the use
of power is to ask three questions that show the criteria for
examining power related behaviours.
 Does the behaviour produce a good outcome for people both

inside and outside the organization? This question represents
the criterion of utilitarian outcomes.
 Does the behaviour respect he rights of all parties? This

question emphasizes the criterion of indicidual rights.
 Does the behaviour treat all parties equitably and fairly? This
question represents the criterion of distributive justice.
Using Power Ethically
To be considered ethical, power-related behaviour must meet all three
criteria. If the behaviour fails to meet the criteria, then alternative
actions should be considered
Two Faces of Power: One Positive, One Negative

Personal Power: Power used for personal gain
Individuals who rely on personal power at its extreme might be
considered Machiavellian – willing to do whatever it takes to get one’s
own way. Niccolo Machiavelli was an Italian statesman during the
sixteenth century who wrote ‘The Prince, a guide for acquiring and using
power’.
Social Power: Power used to create motivation or to accomplish group

goals. McClelland clearly favors the use of social power by managers.
Power To Empower
McClelland has found that managers who use power successfully
have four power oriented characteristics.
1. Belief in the authority System

2. Preference for work and discipline
3. Altruism
4. Belief in Justice
McClelland takes a definite stand on the proper use of power by

managers. When power is used for the good of the group,
rather than for individual gain, it is positive.

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ORGANIZATIONAL

•It is a human tool for human benefi t .

Human Behaviour in Organizational Settings

The Individual-Organization Interface

• It helps people to understand their better interpersonal relations &

6. Economics: Appreciating monetary (wage and

1. Manager: Someone who gets things done through other people in

Mintzberg concluded that managers perform ten different, highly interrelated

Luthans and associates found that all managers engage in

The Hawthorne studies included the following experiments..

Conducted at WESTERN ELECTRIC COMPANY, Chicago, USA

• Conducted the Hawthorne Experiments : Demonstrated the

 Designed to test the effect of lighting intensity on worker productivity .

 This formed the basis of the Further Experiments done by Mayo .

• What Really Increased the Productivity?

 Investigate connection between supervisory practices and employee morale

• Workers were more responsive to the social

• Conclusion: Social groups can influence

Max weber Chester Barnard

• Moreno- Sociometry for studying group interactions

• Raw material • Employees’ work • Production and

Open system view of an organization

NO ONE “ BEST WAY” TO MANAGE PEOPLE

• Individual behavior means some concrete action by a person.

• Political Factors: The stability of Government tends to have impact on

• Reward System: The behavior and performance of an

• Work related behavior: The five stages of the individual’s

Individ Individual Behavior

Behavi Organizational Systems & Resources

An Exciting Life Wisdom

Family Security A World at Peace

Freedom A World of Beauty

INSTRUMENTAL VALUES (I) INSTRUMENTAL VALUES (I)

They labelled these people "Type A" personalities. Type A

The features an individual acquires from their parents or forefathers

• Bandura proposed the idea of reciprocal determinism, our behavior,

Attitudes are relatively stable clusters of feelings,

 Cognitive component; opinion or belief segment of an

 Affective component; emotional or feeling of an

 Behavioral component: behave in a certain way

 Family and peer groups.

 Economic status and occupations.

 Providing new information.

 Influence of friends or peers.

 The co-opting approach.

 Barriers to change—cognitive dissonance, prior commitments

 Attitudinal influences on behavior

 Attitudinal influence on perception

 Both are learned and acquired.

 Both are resistance to change.

 Both have reciprocal influence and are used

 Both are learned and acquired.

 Both are resistance to change.

 Both have reciprocal influence and are used

 Represent judgment of  Represent predispositions to

 Single belief that guides  Several beliefs focused on a

 Derived from social and  Personal experiences

•“ WE DON’T SEE THINGS AS THEY ARE, WE SEE THINGS AS WE

RECEIVING SELECTING ORGANISING