This document provides definitions and explanations of key concepts in management and organizational behavior across 5 units: 1. It defines terms like decision making, management, manager, organization and the different levels of management. 2. It covers topics in organizing like departmentation, span of control, decentralization and delegation. 3. It discusses organizational behavior and includes definitions of perception, personality, attitudes and behavior modification. 4. It addresses motivation theories like Maslow's hierarchy and Herzberg's two-factor theory as well as leadership styles and theories. 5. The final unit discusses communication, conflict, negotiation and control as well as the communication process.

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MANAGEMENT
AND
ORGANISATIONAL BEHAVIOUR
DEFENITIONS OF ALL THE TOPICS COVERED IN THE SYLLABUS
PREPARED BY:
SILIVERU SANDHYA [31]
FANESA BEGUM [09]
AFROSE BEGUM []
PRIYANKA []
MBA Regular I Semester – 2010
School of Management Studies
Jawaharlal Nehru Technological Univerisity
Kukatpally, Hyderabad-500 085.

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UNIT – I
DECISION MAKING: The process of identifying and selecting a course of action to solve
a specific problem {(or) take advantage of an opportunity – is an impact of every
manager’s job}.
MANAGEMENT: The process of planning, organizing, leading and controlling the work
of organization members and of using all available organizational resources to stated
organizational goals.
MANAGER: People responsible for directing the efforts aimed at helping organizations
achieve their goals.
ORGANIZATION: Two or more people who work together in a structured way to achieve
a specific goal or set of goals.
PLANNING: The process of establishing goals and a suitable course of action for
achieving those goals.
ORGANIZING: The process of engaging tow or more people working in together in
structured way to achieve a specific goal on set of goals.
LEADING: The process of directing and influencing the task-related activities of group
members or an entire organization.
CONTROLLING: The process of ensuring that actual activities conform to planned
activities.
FIRST LINE MANAGERS: The lowest level in an organization at which individuals are
responsible for the work of others.
MIDDLE MANAGERS: Middle managers direct the activities of lower level managers and
sometimes those of operating employees as well. They are responsible for other managers
and sometimes for some operating employees. They also report to more senior managers.
TOP MANAGERS: Managers responsible for the over all management of the
organization; they establish operating policies and guide the organizations interaction
with its environment.
FUNCTIONS: A classification referring to a group of similar activities in an organization,
such as marketing or operations.
STAFFING: It involves the process of filing positions in the organization structure.

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PROGRAMMED DECISIONS: It is applied to structured/routine problems.
NON PROGRAMMED DECISIONS: These decisions are used for unstructured novel and
ill defined situations of a nonrecurring nature.
UNIT - II
ORGANIZING: Identification and classification of required activities, the grouping of
activities necessary to attain objectives; the assignment of each grouping to a manager
with the authority necessary to supervise it; the provision for co-ordination horizontally
(similar organizational level) and vertically(i.e., corporate headquarters and department)
ORGANIZATION: Formalized international structure of roles or positions. Sometimes
denotes an enterprise.
FORMAL ORGANIZATION: The intentional structure of roles in a normally organized
enterprise. The structure must furnish an environment in which individual performance
both present and future, contributes most effectively to group goals.
INFORMAL ORGANIZATION: Network of personal and social relations not established
or required by the formal organization but arising spontaneously as people associated
with one another.
DEPARTMENT: It designates a distinct area of division, or branch of an organization
over which a manager has authority for the performance of specified activities.
SPAN OF MANAGEMENT: It states that there is a limit to the number of subordinates a
manager can effectively supreme but the exact number will depend on the impact of
several underlying factors.
1. Subordinate training
2. clarity of delegation of authority
3. clarity of mans
4. use of objective standards
5. rate of change
ENTREPRENEURSHIP: Innovation that is goal oriented change to utilize the enterprises
potential.
ENTREPRENEUR: A person who focuses on innovation and creativity and who
transforms a dream or an idea into a profitable venture by operating within the
organizational environment.
STRUCTURE OF ORGANIZING:

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1. Objectives – activities derived from them.
2. Authority available to an enterprise’s management.
3. Plan must reflect its environment
4. Grouping of activities and the authority relationship of an organization structure.
DEPARTMENTATION: Grouping activities and people into departments.
POWER: Is the ability of individuals or groups to induce or influence the beliefs or
actions of the persons or groups.
AUTHORITY: It is the right in a position to exercise discretion in making decisions
affecting others.
LINE FUNCTIONS: These have direct impact on the accomplishment of the objectives of
the enterprise.
SCALAR PRINCIPLE ORGANIZATION: The clearer the line of authority form the
ultimate management position in an enterprise to every subordinate position, the clearer
will be the responsibility for decision making and the more effective will be organization
communication.
STAFF FUNCTIONS: These functions are those that help the line persons work most
effectively in accomplishing the objectives.
FUNCTIONAL AUTHORITY: It is right which is delegated to an individual or a
department to control specified processes, practices, policies by persons in other
departments.
DECENTRALIZATION: It is the tendency to disperse decision making authority in an
organized structure.
DELEGATION: Authority is delegated when a superior gives a subordinate discretion to
make decisions.
STAFFING: It is defined as filling and keeping filled positions in the organization
structure.
GROUP DYNAMICS: Study of groups (>2 individuals) concerned with small group
behavior. It implies continuously changing and adjusting relationships among group
members.
GROUPS VS TEAMS: A group consists of two or more individuals, interacting and
interdependent who have come together to achieve a common goal.

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A team is a small group of people with complementary skills who work actively
together to achieve a common purpose for which they hold themselves collectively
accountable.
EMPOWERMENT: It is a process in which employees are given increasing amounts of
autonomy and discretion in connection with their work.
ROLE AMBIGUITY: Occurs when the individual employee is unclear about the dictates
of a given situation or doesn’t know what he’s supposed to be doing.
UNIT – III
ORGANIZATIONAL BEHAVIOR: “Organizational behavior is a field of study that
investigates the impact that individuals, groups and organizational structure have on
behavior within the organization, for the purpose of applying such knowledge towards
improving an organizational effectiveness”
Organizational behavior is the study and application of knowledge about human
behavior related to other elements of an organization such as structure, technology and
social systems (LM Prasad).
“Organizational behavior as a field of study that investigates the impact on
individuals, groups and structure have on behavior within organization for the purpose of
applying such knowledge towards improving organization effectiveness (Stephen P
Robins defines).
PERCEPTION: Perception is a process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment (Robbins).
Perception is the selection and organization of environmental stimuli to provide
meaningful experiences for the perceiver. Perception implicates the search for, obtaining
and processing of the information in the mind.
It can also be referred to as a psychological process where people obtain (or take)
information from the environment and make sense of their worlds.
A process by which people attend to incoming stimuli, organize and interpret such
stimuli into behavior.
A process by which individuals organize and interpret their sensory impression in
order to give meaning to their environment.

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ATTRIBUTION: Attribution refers to the tendency one develops to explain the ways in
which one judges other people’s behavior.
Attribution is the complex process in which we observe other’s behavioiur and try
to infer causes behind it from various areas.
Attribution theory suggest that when we evaluate human behavior, it is either
internally caused or it is caused due to external factors as explained above. The
determination however depends on the following three factors
Distinctiveness, Consensus, Consistency.
PERSONALITY: Personality is a dynamic organization within an individual of those
psychological systems that determines his unique adjustment with the environment. It is
a sum total of ways in which an individual reacts and interacts with others.
Personality is a stable set of characteristics and tendencies that determine those
commonalities and differences in the psychological behavior (thoughts, feelings, and
actions) of people that have continuity in time and that may not be easily understood as
the sole result of the social and biological pressures of the moment
ATTITUDES: According to G.W. Allport, “Attitude is a mental and neutral state of
readiness organized through experience, exerting a directive or dynamic influence upon
individual’s response to all objects and situations with which it is related.”
Krech and Crutchfield defined “attitude as an enduring organization of
motivational, emotional, perceptual and cognitive processes with respect to some aspect
of the individual’s world”
According to Katz and Scotland, “Attitude is a tendency or predisposition to
evaluate an object or symbol of that object in a certain way”.
BEHAVIOR MODIFICATION: Learning is essential for human resource development.
Technical skills, motivational values and behavioral conduct are developed through the
learning process. Organizational behavioiur is instrumental in increasing productivity
and effectiveness. Reflexive behavior, operant behavior and social learning behavior and
developed for the modification of organizational behavior. Technically speaking
modification of organizational behavior involves identification measurement, analysis,
intervention and evaluation behavior.
UNIT – IV
MOTIVATION: Motivation is human psychological characteristic that contributes to a
person’s degree of commitment. It includes the factors that cause, channel, and sustain
behavior in a particular committed direction.

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MOTIVATING: It is the management process of influencing people’s behavior based on
their knowledge of ‘what makes people tick’.
Motivation and motivating both deal with the range of conscious human behavior.
LEADERSHIP: The process of directing and influencing the task related activities of
group members.
NEED THEORY: Theory of motivation that addresses what people need or require to line
fulfilling lives, particularly with regard to work.
MASLOWS HIERARCHY OF NEEDS: Theory of motivation that people are motivated to
meet five types of needs, which can be ranked in a hierarchy. They are
1. Self actualization needs 4. Safety and security needs
2. Esteem needs 5. Physiological needs.
3. Belongingness needs
HERTZBERG’S TWO FACTOR THEORY: Hertzberg’s theory that work dissatisfaction
and satisfaction arise from two different sets of factors.
1. Dis-satisfiers
2. Satisfiers
GOAL SETTING THEORY: A process theory of motivation that focuses on the process of
setting goals.
It is described in terms of four phases of a persons reasoning.
1. Establishment of a standard to be attained
2. Evaluation whether the standard can be achieved.
3. Evaluation of whether the standard matches personal goals.
4. The standard is accepted, the goal is thereby set., and behavior proceeds toward
the goal.
JOB DESIGN: The division of an organization’s work among its employees.
Job design is a vehicle for systematically implementing the degree of
decentralization that managers want and believe is necessary for pursuing organizational
goals.
It is there a way for mangers to communicate to employees the opportunities that
employees will have the exercising power and authority.
LEADERSHIP STYLES: These are various patterns of behavior favored by leaders during
the process of directing and influencing workers.
1. Directive 7. Free-rein
2. Supportive 8. Task – oriented
3. Achievement – oriented 9. Structured
4. Participative 10. Managerial grid

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5. Positive and negative 11. Contingency leadership
6. Autocratic
LEADERSHIP THEORIES:
1. TRAIT THEORY: The trait theory attempts to isolate the attributes of successful
and unsuccessful leaders and using this list of traits, predict the success or failure
of potential leaders.
2. BEHAVIORAL THEORY: It attempts to describe leadership in terms of what
leaders do, while trait theory seeks to explain leadership on the basis of what
leaders are
3. SITUATIONAL THEORIES: These theories take the position that the variables in
each situation must be analyzed before an optimum leadership style can be
selected. Leadership is a complex social and interpersonal process; and to
understand it fully we need to see the situation in which a leader operates.
TRANSACTIONAL LEADER: A transaction leader is given power to perform certain
tasks and reward or punish for the team's performance. It gives the opportunity to the
manager to lead the group and the group agrees to follow his lead to accomplish a
predetermined goal in exchange for something else. Power is given to the leader to
evaluate, correct and train subordinates when productivity is not up to the desired level
and reward effectiveness when expected outcome is reached.
TRANSFORMATIONAL LEADER: A transformational leader motivates its team to be
effective and efficient. Communication is the base for goal achievement focusing the
group on the final desired outcome or goal attainment. This leader is highly visible and
uses chain of command to get the job done. Transformational leaders focus on the big
picture, needing to be surrounded by people who take care of the details. The leader is
always looking for ideas that move the organization to reach the company's vision.
LEADING VS MANAGING:
1. RELATIONSHIP: Managing implies the existence of manager. It arises within the
organization where as leading can occur anywhere. It does not have to originate in
the organization context.
2. SOURCES OF INFLUENCE: Managers obtain authority from the organization
where as leaders get power from his followers.
3. ROLE CONTINUANCE: A manager may continue in office as long as his
performance is satisfactory and acceptable to organization where as a leader
maintains his position only through the day-to-day wish of the followers.
4. REASONS FOR FOLLOWING: People follow managers because their job
description, supported by a system of rewards and sanctions, requires them to
follow where as people follow leaders on voluntary basis.
5. ACCOUNTABILITY: Manager-ship implies a clear-cut accountability relationship
where as leadership implies no accountability relationship between himself and
the followers and to organization.

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EVALUATION: It is a systematic determination of merit, worth, and significance of
something or someone using criteria against a set of standards. Evaluation often is used
to characterize and appraise subjects of interest in a wide range of human enterprises,
including the arts, criminal justice, foundations and non-profit organizations,
government, health care, and other human services.
UNIT - V
COMMUNICATION: The process by which people attempt to share meaning via the
transmission of symbolic messages.
ENCODING: The translation of information into a series of symbols for communication.
DECODING: The interpretation and translation of a message into meaningful
information.
LATERAL COMMUNICATION: Communication between departments of an
organization that generally follows the work flow rather than the chain of command, and
thus provides a direct channel for co-ordination and problem solving.
INFORMAL COMMUNICATION: Communication within an organization that s not
officially sanctioned.
CONFLICT: Disagreement about the allocation of scarce resources or clashes regarding
goals, values and so on can occur on the interpersonal or organizational level.
INTEGRATIVE PROCESS: Negotiation process in which the prospects for both parties’
gains are encouraging also known as a win-win situation.
DISTRIBUTIVE PROCESS: Negotiation process n which each of the parties tends to seek
maximum gains and wants to impose maximum losses on the other; also known as a win-
lose situation or zero sum.
NEGOTIATION: The use of communication skills and bargaining to manage conflict and
reach mutually satisfying outcomes.
CONTROL: The process of ensuring that actual activities conform to planned activities.
The central process is not automatic. It is deliberate.
NOISE: Anything that confuses, disturbs, diminishes or interferes with communication.
MESSAGE: The encoded information sent by the sender to the receiver.

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CHANNEL: The formal medium of communication between a sender and a receiver.
SENDER: The initiator of a communication.
RECEIVER: The individual whose senses perceive the sender’s message.
LATERAL COMMUNICATION: Communication between departments of an
organization that generally follows the work flow.
CONTROL SYSTEM: Multi-step procedure applied to various types of control activities.