Organizational Behaviour - How learning it will help entrepreneurs?
How does Organizational Behavior help Entrepreneurs?
Presented by Dhananjay Mull.
What is Organizational Behavior?
It is defined as a study of the human behavior in an
organizational setting, of how an individual can perform on
his own or within a group.
Organizational behavior is a very extensive topic and it is not
only applicable to large multinational corporations but also
micro and small scaled companies alike.
The Value of OB (Organizational Behavior) being that it helps
people attain the competencies needed to become an
effective employee/team member/team leader/ or a
How does OB help you?
It significantly improves your skills. In
this time and age, it is very important
for your principles/clients to be
confident in you. For an entrepreneur,
his face value also affects the
business image. Hence, the better the
skills, the more confidence you instill
upon you and the better you can
It can also improve the performance
of your organization.The ability,
knowledge, skill and resources can
increase the productivity of the firm.
So, why exactly is OB important for
Self Employed folks?
As mentioned earlier, OB is a vast topic and covers various
aspects under it. A few of the most important one’s for the
self employed/ entrepreneurs are:
The Individuals behavior.
Personality and traits.
The image / goodwill of the firm.
Stress and Time management.
Conflict management and resolution.
Understanding individuals in organizations is an important
consideration for all managers. A basic framework that can
be used to facilitate this understanding is the psychological
contract-the set of expectations held by people with respect
to what they will contribute to the organization and what they
expect to get in return.
This section can help us study and analyze various aspects
relating to one’s behavior in the firm.Their values, loyalties,
ethics and attitude.
Each human reacts in a different way to any situation.
Different situations may bring out different reactions in
Human behavior is complex and thus every individual is
different from one another, the challenge as an effective
organisation is in successfully matching the task, the
manager and the subordinator. 06/05/14Dhananjay Mull
We can study in depth of whether a
behavior can be caused or affected
because of heredity, biology, age, gender,
tenure of job, thinking, problem solving
There are various factors influencing
Personality and traits.
We all know that each person is different and will react
differently to each situation, this face must be understood
and appreciated by the leader/manager.
Likewise, every leader and manager should also have the
personality and leadership abilities, without which he would
not be successful to lead his team.
There are various models and theories used to identify
various personality and traits.
Five Personality Traits
These five personality traits are used to understand the
relationship between personality and various behaviors.The
The Johari Window
The Johari Window has 2 key ideas:
Building trust by disclosing
information about self. Or
Learn about yourself and come to
terms with it with the help of
Open Area: consists of things
known by you and others ie. Skills
Blind Area: things known by others
and not you, rejection,
Hidden Area: things known by you
but not others.
Unknown Area: things not known
by you, nor other people.
Tom Hallet – Explaining the Johari window (2013)
Self-Management is an organizational
model wherein the traditional
functions of a manager are pushed out
to all participants in the organization
as opposed to a select few.
Each member of the organization is
personally responsible for forging
their own personal relationships,
planning their own work, coordinating
their actions with other members,
acquiring requisite resources to
accomplish their mission, and for
taking corrective action with respect
to other members when needed.
OB teaches entrepreneurs how to best
manage them self in all aspects of
professional and personal life.
Involves the ability to assess your own strengths and
weaknesses, set goals, balance work and personal life and
engage in new learning for better grooming.
OB helps you understand your own personality, perceive and
appraise yourself accurately to understand and act on your
own for work related matters. Also, to assess and establish
developmental and progressive goals.
OB also helps develop the ability to use all modes of
understanding, sending, receiving ideas to transfer data and
Each firm may have people from different caste’s and states
OB teaches us the ability too value each and every unique
individual and treat them each as a source of organizational
strength and growth.
Fostering an environment suitable for all, learn from others
who have a different character, experience, background.
Work with them and along them as it motivates them and
improve the team.
Helps us develop the ability to support and lead groups to
achieve the organizational goals.
Determining where and how to delegate work and define the
responsibilities of the people.
The image / goodwill of the firm
The factors affecting goodwill are as follows:
1.Location :If the firm is located at a central
place, resulting in good sale, the goodwill
tends to be high.
2.Nature of Business :A firm that produces high
value products or having a stable demand is
able to earn more profits and therefore has
3.Efficient management :A well managed firm
earns higher profit and so the value of goodwill
will also be high.
The image / goodwill of the firm
4.Quality :If a firm is known for the quality of
its products the value of goodwill will be
5.Market Situation :The monopoly condition
to earn high profits which leads to higher
value of goodwill.
6.Special Advantages :The firm has special
advantages like importing licenses, long
term contracts for supply of material,
patents, trademarks, etc. enjoy higher value
Knowing how and why to motivate employees is an important managerial skill.
THE NATURE OF MOTIVATION IN ORGANISATIONS.
Motivation is the set of forces that cause people to choose certain behaviors from
among the many alternatives open to them.
Motivation And Performance In Organizations.
An employee's performance typically is influenced by motivation, ability, and the
work environment. Some deficiencies can be addressed by providing training or
altering the environment, motivation problems are not as easily addressed.
Maslow's hierarchy of needs assumes that people are motivated to satisfy five
levels of needs:
The hierarchical arrangement suggests that the five levels of needs are arranged
in order of increasing importance, starting with physiological needs. According to
the theory, when needs at one level are satisfied, they are no longer motivators
and the individual "moves up" the hierarchy to satisfy needs at the next level.
Maslow's view of motivation provides a logical framework for categorizing needs,
but it does not supply a complete picture.
Clayton Alderfer's ERG theory
(1)Three groups of core needs
Existence needs: physiological and safety needs
Relatedness needs: the desire foe maintaining important interpersonal
relationships: social needs, and the external components of the esteem needs
Growth needs: an intrinsic desire for personal development: the intrinsic
component of esteem, and self-actualization
(2) Basic assumptions: Satisfied low-order needs lead to the desire to satisfy
Multiple needs can be operating as motivators at the same time.
Frustration in attempting to satisfy a higher-level need can result in regression
to a lower need.
Stress at work
Stress is what you feel when you have to
handle more than you are used to.When you
are stressed, your body responds as though
you are in danger.
But if stress happens too often or lasts too
long, it can have bad effects. It can be linked
to headaches, an upset stomach, back pain,
and trouble sleeping. It can weaken
your immune system, making it harder to
fight off disease.
How do you measure your stress level?
It's important to figure out what causes stress
for you. Everyone feels and responds to
stress differently.Tracking your stress may
+Stress at work How can you avoid stress?
Stress is a fact of life for most people.You may not be able to get rid of stress, but you can
look for ways to lower it.
You might try some of these ideas:
Learn better ways to manage your time.
Find better ways to cope.
Take good care of yourself.
Get plenty of rest.
Put new ways of thinking.
Ask for help.
Sometimes stress is just too much to handle alone.Talking to a friend or family member
may help, but you may also want to see a counselor.
Before you can even begin to manage time, you must learn what time is. A
dictionary defines time as "the point or period at which things occur." Put
simply, time is when stuff happens.
There are only three ways to spend time: thoughts, conversations and
actions. Regardless of the type of business you own, your work will be
composed of those three items.
As an entrepreneur, you may be frequently interrupted or pulled in
different directions. It is a key to manage your time effectively to be able
to reach out to all needed avenues in the business.
Conflict management and resolution
Conflict is a process that begins when one party has negatively
affected or is about to negatively affect something that the first party
Or it simple means disagreement between the two or more person at
It encompasses a wide range of conflict that people experience in
Incompatibility of goals
Difference over interpretation of facts
Disagreements based on behavioral expectation
How to manage Conflict
1. Patient listening.
2. Empathy, understand other's point of view.
3. Avoid reacting strongly / avoid anger under all circumstances.
4. Evaluate your responses properly before responding.
5. Communicate, enter into a dialogue, convince or get
6. Choose the right time for dialogue, when the other person is
in a receiving mood.
7. Avoid throwing your weight, even if you have the authority.
8. Allow dissent, manage disagreement constructively,
9. Build consensus, take people along.
10. Create a common vision if others do not have as broad a
perspective as your, explain it to them with patience, train them
& counsel them.
06/05/14 Dhananjay Mull