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ORGANIZATIONAL
BEHAVIOR
Dr Vibhav Singh
School of Business
Management
Organizational behavior (OB) is a field of study
that investigates the impact that individuals,
groups, and structure have on behavior within
organizations for the purpose of applying such
knowledge toward improving an organization’s
effectiveness.
MAJOR BEHAVIORAL SCIENCE
DISCIPLINES THAT CONTRIBUTE TO
OB
ATTITUDES
Attitudes are evaluative statements—either favorable or unfavorable—
about objects, people, or events.
– They reflect how we feel about something.
RELATIONSHIP BETWEEN
ATTITUDES AND BEHAVIOR
The attitudes that people hold determine what they do.
ď‚­ Festinger: cases of attitude following behavior illustrate the
effects of cognitive dissonance.
ď‚­ Cognitive dissonance is any incompatibility an individual
might perceive between two or more attitudes or between
behavior and attitudes.
Research has generally concluded that people seek consistency
among their attitudes and between their attitudes and their
behavior.
RELATIONSHIP BETWEEN
ATTITUDES AND BEHAVIOR
Moderating Variables:
 Attitude’s importance
ď‚­ Correspondence to behavior
ď‚­ Accessibility
ď‚­ Presence of social pressures
ď‚­ Whether a person has direct experience with the attitude
The attitude-behavior relationship is likely to be much stronger if
an attitude refers to something with which we have direct
personal experience.
MAJOR JOB ATTITUDES
Job Satisfaction
ď‚­ A positive feeling about the job resulting from an evaluation of its
characteristics.
Job Involvement
ď‚­ Degree to which a person identifies with a job, actively participates in
it, and considers performance important to self-worth.
ď‚­ Psychological Empowerment
 Belief in the degree of influence over one’s job, competence, job
meaningfulness, and autonomy.
Organizational Commitment
ď‚­ Identifying with a particular organization and its goals and wishing to
maintain membership in the organization.
ď‚­ Employees who are committed will be less likely to engage in work
withdrawal even if they are dissatisfied, because they have a sense of
organizational loyalty.
MAJOR JOB ATTITUDES
Perceived Organizational Support (POS)
ď‚­ Degree to which employees believe the organization values their
contribution and cares about their well-being.
ď‚­ Higher when rewards are fair, employees are involved in decision
making, and supervisors are seen as supportive.
ď‚­ POS is important in countries where power distance is lower.
Employee Engagement
 The individual’s involvement with, satisfaction with, and enthusiasm for
the work.
ď‚­ Engaged employees are passionate about their work and company.
Are these job attitudes really all that distinct?
No, these attitudes are highly related; and
while there is some distinction, there is also a
lot of overlap that may cause confusion.
MAJOR JOB ATTITUDES
Job Satisfaction
ď‚­ A positive feeling about a job resulting from an evaluation of its
characteristics.
Two approaches for measuring job satisfaction are popular
ď‚­ The single global rating.
ď‚­ The summation of job facets.
How satisfied are people in their jobs?
ď‚­ Over the last 30 years, employees in the U.S. and most
developed countries have generally been satisfied with their
jobs.
ď‚­ With the recent economic downturn, more workers are less
satisfied.
ď‚­ Satisfaction levels differ depending on the facet involved.
ď‚­ There are cultural differences in job satisfaction.
MAJOR JOB ATTITUDES
What causes job satisfaction?
ď‚­ Job conditions
ď‚­ The intrinsic nature of the work itself, social interactions, and supervision are
important predictors of satisfaction and employee well-being.
ď‚­ Personality
ď‚­ People who have positive core self-evaluations, who believe in their inner
worth and basic competence, are more satisfied with their jobs than those
with negative core self-evaluations.
Corporate Social Responsibility (CSR)
ď‚­ Corporate social responsibility (CSR): self-regulated actions to benefit
society or the environment beyond what is required by law.
ď‚­ Includes environmental sustainability initiatives, nonprofit work, and
charitable giving.
ď‚­ Increasingly affects employee job satisfaction.
ď‚­ CSR is particularly important for Millennials.
ď‚­ But, not everyone finds value in CSR.
OUTCOMES OF JOB
SATISFACTION
• Job Performance
– Happy workers are more likely to be productive workers.
• OCB
– People who are more satisfied with their jobs are more likely to
engage in OCB.
• Customer Satisfaction
– Satisfied employees increase customer satisfaction and loyalty.
• Life Satisfaction
– Research shows that job satisfaction is positively correlated with
life satisfaction.
FOUR EMPLOYEE RESPONSES
TO DISSATISFACTION
Counterproductive Work Behavior
(CWB)
Counterproductive work
behavior: actions that actively
damage the organization,
including stealing, behaving
aggressively toward
coworkers, or being late or
absent.
Absenteeism: the more
satisfied you are, the less
likely you are to miss work.
Turnover: a pattern of lowered
IMPLICATION FOR MANAGERS
 Of the major job attitudes – job satisfaction, job involvement,
organizational commitment, perceived organizational support (POS),
and employee engagement – remember that an employee’s job
satisfaction level is the best single predictor of behavior.
Pay attention to your employees’ job satisfaction levels as determinants
of their performance, turnover, absenteeism, and withdrawal behaviors.
Measure employee job attitudes objectively and at regular intervals to
determine how employees are reacting to their work.
To raise employee satisfaction, evaluate the fit between the employee’s
work interests and the intrinsic parts of his/her job to create work that
is challenging and interesting to the individual.
Consider the fact that high pay alone is unlikely to create a satisfying
work environment.
PERSONALITY
Defining Personality
ď‚­ Personality is a dynamic concept describing the growth and development of
a person’s whole psychological system.
ď‚­ The sum of ways in which an individual reacts to and interacts with others.
Measuring Personality
ď‚­ Managers need to know how to measure personality.
ď‚­ Personality tests are useful in hiring decisions and help managers forecast
who is best for a job.
ď‚­ The most common means of measuring personality is through self-report
surveys.
Personality Determinants
ď‚­ Is personality the result of heredity or environment?
ď‚­ Heredity refers to those factors that were determined at conception.
 The heredity approach argues that the ultimate explanation of an individual’s
personality is the molecular structure of the genes, located in the
chromosomes.
MBTI AND BIG FIVE MODEL
Early research tried to identify and label enduring personality characteristics.
ď‚­ Shy, aggressive, submissive, lazy, ambitious, loyal, and timid.
ď‚­ These are personality traits.
The most widely used personality framework is the Myers-Briggs Type
Indicator (MBTI).
Individuals are classified as:
ď‚­ Extroverted or Introverted (E or I)
ď‚­ Sensing or Intuitive (S or N)
ď‚­ Thinking or Feeling (T or F)
ď‚­ Perceiving or Judging (P or J)
ď‚­ INTJs are visionaries.
ď‚­ ESTJs are organizers.
ď‚­ ENTPs are conceptualizers.
MBTI AND BIG FIVE MODEL
The Big Five Model
ď‚­ Extraversion
ď‚­ Agreeableness
ď‚­ Conscientiousness
ď‚­ Emotional stability
ď‚­ Openness to experience
MBTI AND BIG FIVE MODEL
Exhibit 5-1 Traits That Matter Most to Business Success at Buyout
Companies
MBTI AND BIG FIVE MODEL
PERSONALITY
The Dark Triad
ď‚­ Machiavellianism: the degree to which an individual is pragmatic,
maintains emotional distance, and believes that ends can justify means.
ď‚­ Narcissism: the tendency to be arrogant, have a grandiose sense of self-
importance, require excessive admiration, and have a sense of
entitlement.
ď‚­ Psychopathy: the tendency for a lack of concern for others and a lack of
guilt or remorse when their actions cause harm.
An emerging framework to study dark side traits:
ď‚­ First, antisocial people are indifferent and callous toward others.
ď‚­ Second, borderline people have low self-esteem and high uncertainty.
ď‚­ Third, schizotypal individuals are eccentric and disorganized.
ď‚­ Fourth, obsessive compulsive people are perfectionists and can be
stubborn, yet they attend to details, carry a strong work ethic, and may
be motivated by achievement.
ď‚­ Fifth, avoidant individuals feel inadequate and hate criticism.
PERSONALITY
Other Personality Traits Relevant to OB
ď‚­ Core Self-Evaluation: bottom line conclusions individuals
have about their capabilities, competence, and worth as a
person.
 Self-Monitoring: measures an individual’s ability to adjust
his or her behavior to external, situational factors.
ď‚­ Proactive Personality: people who identify opportunities,
show initiative, take action, and persevere until meaningful
change occurs.
LINKING PERSONALITY AND
VALUES TO THE WORKPLACE
Person-Organization Fit
ď‚­ People high on extraversion fit well with aggressive and team-
oriented cultures.
ď‚­ People high on agreeableness match up better with a supportive
organizational climate than one focused on aggressiveness.
ď‚­ People high on openness to experience fit better in organizations
that emphasize innovation rather than standardization.
Other Dimensions of Fit
– Although person-job fit and person-organization fit are
considered the most salient dimensions for workplace outcomes,
other avenues of fit are worth examining.
Person-group fit
Person-supervisor fit
PERCEPTION
Perception is a process by which individuals organize and interpret their
sensory impressions to give meaning to their environment.
It is important to the study of OB because people’s behaviors are based on
their perception of what reality is, not on reality itself.
ATTRIBUTION THEORY
Attribution theory suggests that when we observe an
individual’s behavior, we attempt to determine whether it was
internally or externally caused.
Determination depends on three factors:
ď‚­ Distinctiveness
ď‚­ Consensus
ď‚­ Consistency
Clarification of the differences between internal and external
causation
 Internally caused – those that are believed to be under the
personal control of the individual.
 Externally caused – resulting from outside causes.
ATTRIBUTION THEORY
Fundamental attribution error
We have a tendency to underestimate the
influence of external factors and overestimate
the influence of internal or personal factors.
Self-serving bias
Individuals attribute their own successes to
internal factors.
Common Shortcuts in Judging Others
Selective perception
Halo effect
Contrast effects
Stereotyping
ATTRIBUTION THEORY
Applications of Shortcuts in Organizations
ď‚­ Employment Interview
ď‚­ Evidence indicates that interviewers make perceptual judgments that are often inaccurate.
ď‚­ Interviewers generally draw early impressions that become very quickly entrenched.
 Studies indicate that most interviewers’ decisions change very little after the first four or five
minutes of the interview.
Performance Expectations
ď‚­ Evidence demonstrates that people will attempt to validate their perceptions of reality, even when
those perceptions are faulty.
 Self-fulfilling prophecy, or the Pygmalion effect, characterizes the fact that people’s expectations
determine their behavior.
ď‚­ Expectations become reality.
Performance Evaluation
 An employee’s performance appraisal is very much dependent upon the perceptual process.
ď‚­ Many jobs are evaluated in subjective terms.
ď‚­ Subjective measures are problematic because of selective perception, contrast effects, halo effects,
and so on.
IMPRESSION MANAGEMENT
Impression management is a process in which individuals try to influence the perceptions
people have about something, a person, or an event.
Tactics of Impression Management
1. Ingratiation
2. Self-promotion
3. Exemplification
4. Supplication
5. Intimidation

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Foundation to indivudal behaviour personality theories

  • 2. Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge toward improving an organization’s effectiveness.
  • 3. MAJOR BEHAVIORAL SCIENCE DISCIPLINES THAT CONTRIBUTE TO OB
  • 4. ATTITUDES Attitudes are evaluative statements—either favorable or unfavorable— about objects, people, or events. – They reflect how we feel about something.
  • 5. RELATIONSHIP BETWEEN ATTITUDES AND BEHAVIOR The attitudes that people hold determine what they do. ď‚­ Festinger: cases of attitude following behavior illustrate the effects of cognitive dissonance. ď‚­ Cognitive dissonance is any incompatibility an individual might perceive between two or more attitudes or between behavior and attitudes. Research has generally concluded that people seek consistency among their attitudes and between their attitudes and their behavior.
  • 6. RELATIONSHIP BETWEEN ATTITUDES AND BEHAVIOR Moderating Variables: ď‚­ Attitude’s importance ď‚­ Correspondence to behavior ď‚­ Accessibility ď‚­ Presence of social pressures ď‚­ Whether a person has direct experience with the attitude The attitude-behavior relationship is likely to be much stronger if an attitude refers to something with which we have direct personal experience.
  • 7. MAJOR JOB ATTITUDES Job Satisfaction ď‚­ A positive feeling about the job resulting from an evaluation of its characteristics. Job Involvement ď‚­ Degree to which a person identifies with a job, actively participates in it, and considers performance important to self-worth. ď‚­ Psychological Empowerment ď‚­ Belief in the degree of influence over one’s job, competence, job meaningfulness, and autonomy. Organizational Commitment ď‚­ Identifying with a particular organization and its goals and wishing to maintain membership in the organization. ď‚­ Employees who are committed will be less likely to engage in work withdrawal even if they are dissatisfied, because they have a sense of organizational loyalty.
  • 8. MAJOR JOB ATTITUDES Perceived Organizational Support (POS) ď‚­ Degree to which employees believe the organization values their contribution and cares about their well-being. ď‚­ Higher when rewards are fair, employees are involved in decision making, and supervisors are seen as supportive. ď‚­ POS is important in countries where power distance is lower. Employee Engagement ď‚­ The individual’s involvement with, satisfaction with, and enthusiasm for the work. ď‚­ Engaged employees are passionate about their work and company. Are these job attitudes really all that distinct? No, these attitudes are highly related; and while there is some distinction, there is also a lot of overlap that may cause confusion.
  • 9. MAJOR JOB ATTITUDES Job Satisfaction ď‚­ A positive feeling about a job resulting from an evaluation of its characteristics. Two approaches for measuring job satisfaction are popular ď‚­ The single global rating. ď‚­ The summation of job facets. How satisfied are people in their jobs? ď‚­ Over the last 30 years, employees in the U.S. and most developed countries have generally been satisfied with their jobs. ď‚­ With the recent economic downturn, more workers are less satisfied. ď‚­ Satisfaction levels differ depending on the facet involved. ď‚­ There are cultural differences in job satisfaction.
  • 10. MAJOR JOB ATTITUDES What causes job satisfaction? ď‚­ Job conditions ď‚­ The intrinsic nature of the work itself, social interactions, and supervision are important predictors of satisfaction and employee well-being. ď‚­ Personality ď‚­ People who have positive core self-evaluations, who believe in their inner worth and basic competence, are more satisfied with their jobs than those with negative core self-evaluations. Corporate Social Responsibility (CSR) ď‚­ Corporate social responsibility (CSR): self-regulated actions to benefit society or the environment beyond what is required by law. ď‚­ Includes environmental sustainability initiatives, nonprofit work, and charitable giving. ď‚­ Increasingly affects employee job satisfaction. ď‚­ CSR is particularly important for Millennials. ď‚­ But, not everyone finds value in CSR.
  • 11. OUTCOMES OF JOB SATISFACTION • Job Performance – Happy workers are more likely to be productive workers. • OCB – People who are more satisfied with their jobs are more likely to engage in OCB. • Customer Satisfaction – Satisfied employees increase customer satisfaction and loyalty. • Life Satisfaction – Research shows that job satisfaction is positively correlated with life satisfaction.
  • 12. FOUR EMPLOYEE RESPONSES TO DISSATISFACTION Counterproductive Work Behavior (CWB) Counterproductive work behavior: actions that actively damage the organization, including stealing, behaving aggressively toward coworkers, or being late or absent. Absenteeism: the more satisfied you are, the less likely you are to miss work. Turnover: a pattern of lowered
  • 13. IMPLICATION FOR MANAGERS ď‚­ Of the major job attitudes – job satisfaction, job involvement, organizational commitment, perceived organizational support (POS), and employee engagement – remember that an employee’s job satisfaction level is the best single predictor of behavior. Pay attention to your employees’ job satisfaction levels as determinants of their performance, turnover, absenteeism, and withdrawal behaviors. Measure employee job attitudes objectively and at regular intervals to determine how employees are reacting to their work. To raise employee satisfaction, evaluate the fit between the employee’s work interests and the intrinsic parts of his/her job to create work that is challenging and interesting to the individual. Consider the fact that high pay alone is unlikely to create a satisfying work environment.
  • 14. PERSONALITY Defining Personality ď‚­ Personality is a dynamic concept describing the growth and development of a person’s whole psychological system. ď‚­ The sum of ways in which an individual reacts to and interacts with others. Measuring Personality ď‚­ Managers need to know how to measure personality. ď‚­ Personality tests are useful in hiring decisions and help managers forecast who is best for a job. ď‚­ The most common means of measuring personality is through self-report surveys. Personality Determinants ď‚­ Is personality the result of heredity or environment? ď‚­ Heredity refers to those factors that were determined at conception. ď‚­ The heredity approach argues that the ultimate explanation of an individual’s personality is the molecular structure of the genes, located in the chromosomes.
  • 15. MBTI AND BIG FIVE MODEL Early research tried to identify and label enduring personality characteristics. ď‚­ Shy, aggressive, submissive, lazy, ambitious, loyal, and timid. ď‚­ These are personality traits. The most widely used personality framework is the Myers-Briggs Type Indicator (MBTI). Individuals are classified as: ď‚­ Extroverted or Introverted (E or I) ď‚­ Sensing or Intuitive (S or N) ď‚­ Thinking or Feeling (T or F) ď‚­ Perceiving or Judging (P or J) ď‚­ INTJs are visionaries. ď‚­ ESTJs are organizers. ď‚­ ENTPs are conceptualizers.
  • 16. MBTI AND BIG FIVE MODEL The Big Five Model ď‚­ Extraversion ď‚­ Agreeableness ď‚­ Conscientiousness ď‚­ Emotional stability ď‚­ Openness to experience
  • 17. MBTI AND BIG FIVE MODEL Exhibit 5-1 Traits That Matter Most to Business Success at Buyout Companies
  • 18. MBTI AND BIG FIVE MODEL
  • 19. PERSONALITY The Dark Triad ď‚­ Machiavellianism: the degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. ď‚­ Narcissism: the tendency to be arrogant, have a grandiose sense of self- importance, require excessive admiration, and have a sense of entitlement. ď‚­ Psychopathy: the tendency for a lack of concern for others and a lack of guilt or remorse when their actions cause harm. An emerging framework to study dark side traits: ď‚­ First, antisocial people are indifferent and callous toward others. ď‚­ Second, borderline people have low self-esteem and high uncertainty. ď‚­ Third, schizotypal individuals are eccentric and disorganized. ď‚­ Fourth, obsessive compulsive people are perfectionists and can be stubborn, yet they attend to details, carry a strong work ethic, and may be motivated by achievement. ď‚­ Fifth, avoidant individuals feel inadequate and hate criticism.
  • 20. PERSONALITY Other Personality Traits Relevant to OB ď‚­ Core Self-Evaluation: bottom line conclusions individuals have about their capabilities, competence, and worth as a person. ď‚­ Self-Monitoring: measures an individual’s ability to adjust his or her behavior to external, situational factors. ď‚­ Proactive Personality: people who identify opportunities, show initiative, take action, and persevere until meaningful change occurs.
  • 21. LINKING PERSONALITY AND VALUES TO THE WORKPLACE Person-Organization Fit ď‚­ People high on extraversion fit well with aggressive and team- oriented cultures. ď‚­ People high on agreeableness match up better with a supportive organizational climate than one focused on aggressiveness. ď‚­ People high on openness to experience fit better in organizations that emphasize innovation rather than standardization. Other Dimensions of Fit – Although person-job fit and person-organization fit are considered the most salient dimensions for workplace outcomes, other avenues of fit are worth examining. Person-group fit Person-supervisor fit
  • 22. PERCEPTION Perception is a process by which individuals organize and interpret their sensory impressions to give meaning to their environment. It is important to the study of OB because people’s behaviors are based on their perception of what reality is, not on reality itself.
  • 23. ATTRIBUTION THEORY Attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused. Determination depends on three factors: ď‚­ Distinctiveness ď‚­ Consensus ď‚­ Consistency Clarification of the differences between internal and external causation ď‚­ Internally caused – those that are believed to be under the personal control of the individual. ď‚­ Externally caused – resulting from outside causes.
  • 24. ATTRIBUTION THEORY Fundamental attribution error We have a tendency to underestimate the influence of external factors and overestimate the influence of internal or personal factors. Self-serving bias Individuals attribute their own successes to internal factors. Common Shortcuts in Judging Others Selective perception Halo effect Contrast effects Stereotyping
  • 25. ATTRIBUTION THEORY Applications of Shortcuts in Organizations ď‚­ Employment Interview ď‚­ Evidence indicates that interviewers make perceptual judgments that are often inaccurate. ď‚­ Interviewers generally draw early impressions that become very quickly entrenched. ď‚­ Studies indicate that most interviewers’ decisions change very little after the first four or five minutes of the interview. Performance Expectations ď‚­ Evidence demonstrates that people will attempt to validate their perceptions of reality, even when those perceptions are faulty. ď‚­ Self-fulfilling prophecy, or the Pygmalion effect, characterizes the fact that people’s expectations determine their behavior. ď‚­ Expectations become reality. Performance Evaluation ď‚­ An employee’s performance appraisal is very much dependent upon the perceptual process. ď‚­ Many jobs are evaluated in subjective terms. ď‚­ Subjective measures are problematic because of selective perception, contrast effects, halo effects, and so on.
  • 26. IMPRESSION MANAGEMENT Impression management is a process in which individuals try to influence the perceptions people have about something, a person, or an event. Tactics of Impression Management 1. Ingratiation 2. Self-promotion 3. Exemplification 4. Supplication 5. Intimidation