Organisations exist to increase specialization, use large-scale technology, manage the external environment, economize on transaction costs, and exert power and control. Organisational behaviour is the study of human behaviour in organisational settings, focusing on the individual, groups, and their interactions. Learning in organisations occurs through classical conditioning, operant conditioning, and social learning processes like observation and direct experience.

2. What are the Organisations?
 Organisations are the groups of people who work
independently towards some purpose. Organisations
are not physical structures; rather; they are people who
work together to achieve a set of goals. People who
work in organisations have structured patterns of
interactions, meaning that they expect each other to
complete task in an certain way.

3. Why do Organisations exist?
Five reasons why organisations exist
To increase specialization and the division of labour.
To Use large scale technology
 Economies of scale
 Economies of scope
To manage the external environment
To economize on transaction costs.
To exert power and control

4. Why organisation Exist.Increased
specialisation and
division of labour
Use large scale
technology
Manage external
environment
Exert power and
control
Economize on
Transaction costs
Which increases
the value that an
organisation can
create
Organisatio
n allows
people
jointly to:

5. Definition and meaning of OB
The definitions on OB are many. However ,three
features need to be emphasized in any definition.
 OB is the study of human behaviour;
 The study is about behaviour in organisations; and
 Knowledge about human behaviour would be useful
in improving an organisation’s effectiveness.
OB refers to the behaviour of individuals and groups
within organisations and the interaction between
organizational members and their external environments.

6. Human
Human behaviour in
Organizational settings
Human
The individual
organizational
interface
The Organization
Environment
Environment
The nature of Organisational Behaviour

7. What Managers do?
 Management Functions:
o Planning
o Organising
o Leading
o Controlling

8. Management Roles
 Interpersonal Roles
 Informational Roles
 Decisional Roles

9. Management Skills
 Technical skills
 Human skills
 Conceptual skills

10. Foundations of OB
Individual
differences
Whole Person
Caused Behaviour
Human Dignity
Social Systems
Mutuality of
Interests
Holistic concept
OB

11. Contributing Disciplines
Sociology studies
people in relation to
their fellow human
beings.
Social psychology
is an area within
psychology,
blending concepts
from psychology
and sociology.
Political science,
the study of the
behavior of
individuals and
groups within a
political
environment, is
frequently
overlooked.
Anthropology is
the study of
societies to learn
about human be-
ings and their
activities.
Psychology is the
science that seeks to
measure, explain,
and sometimes
change the behavior
of humans and
other animals.

12. Nature of Organizational Behaviour
 A field of study and not a discipline
 Interdisciplinary approach
 An applied science
 Normative and Value centered
 Humanistic and Optimistic
 Oriented towards Organisational objectives

13. CHALLENGES AND OPPORTUNITIES FOR OB
– Increased Foreign Assignments
– Working with People from Different Cultures
– Overseeing Movement of Jobs to Countries with Low-
Cost Labor
– Embracing Diversity
– Improving Quality and Productivity
– People Attrition
– Challenging Jobs
– Autonomy
– Changing lifestyle

14. CHALLENGES AND OPPORTUNITIES FOR OB
– Entry of woman Workforce
– Improving People Skills
– Improving Customer Service
– Empowering People
– Working in Networked Organizations
– Stimulating Innovation and Change
– Coping with “Temporariness”
– Helping Employees Balance Work/Life Conflicts
– Declining Employee Loyalty
– Improving Ethical Behavior

15. Foundations of Individual
Behaviour
 Ability: refers to an individual’s capacity to perform
the various tasks in a job.
we all are not equal in abilities does not imply that
some individuals are inherently inferiors to
others.Everyone has strengths and weaknesses in
terms of ability that make him or her relatively
superior or inferior to others in performing certain
tasks or activities.

16. Individual’s ability are made up of
two set of factors:
 Intellectual
 Physical

17. Intellectual Abilities
The capacity to do mental activities-thinking,
reasoning and problem solving.

18. Seven most frequently cited dimensions
making up intellectual abilities are:
1. Number aptitude: Ability to do speedy and accurate
arithmetic.
2. Verbal comprehension: Ability to understand what is read or
heard and the relationship of words to each other.
3. Perceptual speed:Ability to identify visual similarities and
diffrences quickly and accurately.
4. Inductive reasoning:Ability to identify a logical sequence in a
problem and then solve the problem.
5. Deductive reasoning:Ability to use logic and assess the
implications of an argument.
6. Spatial visualization: Ability t o imagine how an object
would look if its position in space were changed.
7. Memory:Ability to retain and recall past experiences.

19. Physical Abilities
 The capacity to do tasks demanding stamina, dexterity,
strength and similar characteristics.
Physical abilities gain importance for successfully doing
less –skilled and more standardized jobs.e.g. Jobs in
which success demands stamina, manual dexterity, leg
strength or similar talents require management to
identify an employee’s physical capabilities.

20. Nine Basic Physical Abilities
 Strength Factors
1. Dynamic strength: Ability to exert muscular force
repeatedly or continuously over time.
2. Trunk strength: Ability to exert muscular strength
using the trunk(particularly abdominal)muscles.
3. Static strength: Ability to exert force against external
objects.

21. 4.Explosive strength: Ability to expend a maximum of
energy in one or a series of explosive acts.
Flexibility factors:
5. Extent Flexibility: Ability to move the trunk and back
muscles as far as possible.
6. Dynamic flexibility: Ability to make rapid , repeated
flexible movements.

22. Others factors:
7. Body coordination: ability to coordinate the
simultaneous actions of different parts of the body.
8 Balance: Ability to maintain equilibrium despite forces
pulling off balance .
9.Stamina: Ability to continue maximum effort requiring
prolonged effort over time.

23. Biographical Characteristics
Personal characteristics such as-
 Age
 Gender
 Race
 Tenure

24. Age
The relationship between age and job performance is
likely to be issue of increasing importance during this
decade.
There are atleast reasons:
1. There is a widespread belief job performance declines
with increasing age.
2. The workforce is young or aging.
3.Voluntary retirement outlaws mandatory requirement.

25. No. of positive qualities that older workers bring to
their jobs
1.Experience
2.Judgement
3.Strong work ethic
4.Commitment to quality
But older workers lack in flexibility & resist to new
technology.

26. What effect does age actually have on turnover
,absenteeism, productivity and satisfaction.

27. Learning
Any relative permanent change in behaviour that occurs
as result of experience.
Learning
• Involves change
• Is relatively permanent
• Is acquired through experience

28. Theories of learning
 Classical Conditioning:
A type of conditioning in which an individual
responds to some stimulus that would not ordinarily
produce such a response.
Key Concepts
• Unconditioned stimulus
• Unconditioned response
• Conditioned stimulus
• Conditioned response

30. Operant Conditioning:
A type of conditioning in which desired voluntary
behaviour leads to a reward or prevents a punishment.
Key Concepts
• Reflexive (unlearned) behavior
• Conditioned (learned) behavior
• Reinforcement

31. Social Learning:
The view that people can learn through observation
and direct experience.
Key Concepts
• Attentional processes
• Retention processes
• Motor reproduction processes
• Reinforcement processes

32. Four processes have been found to determine the
influence that a model will have to an individual:
1. Attentional processes: People learn from a model
when they recognize and pay attention to its critical
features. We tend to be most influenced by models
that are attractive ,repeatedly available, important to
us, or similar to us in our estimation.
2. 2. Retention processes: A model’s influence will
depend on how well the individual remembers the
model’s action after the model is no longer readily
available.

33. 3. Motor reproduction processes: After a person has
seen a new behaviour the model, the watching must
be converted to doing. This process then
demonstrates that the individual can perform the
modeled activities.
4. Reinforcement processes.: Individuals will be
motivated to exhibit the modeled behavior if positive
incentives or rewards are provided.Behaviors that are
positively reinforced will be given more attention,l
earned better, and performed more often.

34. Shaping : A managerial Tool
Systematically reinforcing each successive step that
moves an individual closer to the desired response.
Methods of shaping behaviour:
 Positive reinforcement: following response with
something pleasant. e.g. boss who praises an
employee for a job well done.
 Negative reinforcement: Following response by the
termination or with drawl of something unpleasant.e.g
college instructor.........

35.  Punishment: is causing an unpleasant condition in an
attempt to eliminate an undesirable behaviour.e.g
giving an employee an 2 day suspension from work
without pay for showing up drunk
 Extinction: Eliminating any reinforcement that is
maintaining a behaviour is called extinction..When
the behaviour is not reinforced, it tends to be gradually
extinguished.

36. Schedules of Reinforcement
Two major types of reinforcement schedules are:
1. Continuous reinforcement: Reinforcing a desired
behaviour each time it is demonstrated.
2. Intermittent reinforcement: Reinforcing a desired
behaviour often to make the behaviour worth
repeating but not every time it is demonstrated.

37. Schedules of Reinforcement
(cont’d)
Fixed-ratio

38. Intermittent reinforcement can be of two type:
Ratio schedule depends on how many responses the
subject makes.The individual is reinforced after giving
a certain number of specific types of behaviour.
Interval schedule depends on how much time has
passed since the previous reinforcement .with interval
schedules ,the individual is reinforced on the first
appropriate behaviour after a particular time has
elapsed.

39. Some specific organisational Applications:
 well pay versus sick pay
 Employee Discipline
 Developing Training Programs
 Self-Management.

40. Attitudes
Evaluative statements or judgements concerning
objects, people, or events.
What are the main components of Attitudes?
Researchers have assumed that attitudes have three
components :
Cognitive component: The opinion or belief segment
of an attitude.
e.g My supervisor gave a promotion to a co-worker who
deserved it less than me. My supervisor is unfair.

41. Affective component: The emotional or feeling
segment of an attitude.
e.g I dislike my supervisor
Behavioral component: An intention to behave in a
certain way toward something or someone.
e.g I’m looking for other work ;I've complained about
my supervisor or anyone who would listen.

42. Rewards also influence the degree to which individuals
are motivated to reduce dissonance.High rewards
accompanying high dissonance tend to reduce the
tension inherent in the dissonance.The reward act to
reduce dissonance by increasing the consistency side
of the individual’s balance sheet.

43. Most of the research on OB has been concerned
with three attitudes:
1. Job satisfaction
2. Job involvement
3. Organisational commitment.
Few others attitudes are attracting attention from
researchers, these are,
4.Perceived organisational support
5.And employee engagement

44.  Job Satisfaction : job satisfaction can be defined as a
positive feeling about one’s job resulting from an
evaluation of its characteristics.
A person with a high level of job satisfaction holds
positive feelings about the job, while who is
dissatisfied holds negative feelings about the job.

45.  Job Involvement:
The degree to which a person identifies with a job,
actively participates in it, and considers performance
in it, and considers performance important to self-
worth.
A closely related concept is psychological
empowernment,which is employee’s beliefs in the
degree to which they impact their work
environment,their competence,the meaningfulness of
their job, and the perceived autonomy in their work.

46.  Organizational Commitment:
Organizational Commitment is defined as a state in
which an employee identifies with a particular
organization and its goals and wishes to maintain
membership in the organization.
So, high involvement means idenitifying with one’s
specific job, while high organizational commitment
means identifying with one’s employing organization.

47. There are separate dimensions to organizational
commitment.
1.Affective Commitment:
an emotional attachment to the organization and a
beliefs in its values.e.g A petco employee may be
affectively committed to the company because of its
involvement with animals.
2.Continuance Commitment:
The perceived economic value of remaining with an
organization compared to leaving it. An employee may
be committed to an employer because she is paid well
and feels it would hurt her family to quit. assertive

48. 3. Normative commitment:
An obligation to remain with the organization for
moral or ethical reasons . E.g.an employee who is
spaerhaeding a new initiative may remain with an
employer beacuse he feels it would :leave the employer
in lurch:if he left.
4.Perceived organisational support:
The degree to which employees believe the
organization values their contribution and cares about
their well-being

49. 5.Employee engagement:
An individual’s involvement with ,satisfaction with,
and enthusiasm for the work they do.

50. What is Personality?
The sum total of ways in which an individual reacts
and interacts with others.
Personality Traits
Enduring characteristics
that describe an
individual’s behavior.
Personality
Determinants
• Heredity
• Environment
• Situation

51. What is Personality?
The sum total of ways in which an individual reacts
and interacts with others.
Personality Traits
Enduring characteristics
that describe an
individual’s behavior.
Personality
Determinants
• Heredity
• Environment
• Situation

52. The Myers-Briggs Type Indicator
Personality Types
• Extroverted vs. Introverted (E or I)
• Sensing vs. Intuitive (S or N)
• Thinking vs. Feeling (T or F)
• Judging vs. Perceiving (P or J)
Myers-Briggs Type Indicator (MBTI)
A personality test that taps four characteristics and
classifies people into 1 of 16 personality types.

53. The Myers-Briggs Type Indicator
• Most widely used instrument in the world.
• Participants are classified on four axes to
determine one of 16 possible personality
types, such as ENTJ.

54. The Myers-Briggs Type Indicator
Sociable and
Assertive
Practical and
Orderly
Use Reason
and Logic
Want Order
& Structure
Quiet and
Shy
Unconscious
Processes
Uses Values
& Emotions
Flexible and
Spontaneous

55. The Types and Their Uses
• Most widely used instrument in the world.
• Participants are classified on four axes to
determine one of 16 possible personality
types, such as ENTJ.

56. Myers-Briggs
Sixteen
Primary
Traits

57. The Types and Their Uses
• Each of the sixteen possible combinations has a
name, for instance:
– Visionaries (INTJ) – original, stubborn, and driven.
– Organizers (ESTJ) – realistic, logical, analytical, and
businesslike.
– Conceptualizer (ENTP) – entrepreneurial, innovative,
individualistic, and resourceful.
• Research results on validity mixed.
– MBTI® is a good tool for self-awareness and
counseling.
– Should not be used as a selection test for job
candidates.

58. Big Five Model
 Extroversion:This dimension captures one’s comfort
level with relationships.Extroverts tends to be
gregarious,assertive,sociable.Introverts tend to be
reserved ,timid and quiet.
 Agreeableness:This dimension refers to an individual’s
propensity to defer to others.Highly agreeable people
are cooperative,warm and trusting.People who score
low are cold,disagreeable .
 Conscientiousness:This dimension is a measure of
reliablity. Highly Conscientious person is
Responsible, dependable, persistent, and
organized.Those who score low on this dimension
are easily distracted ,disorganised,unreliable.

59.  Emotional stability:This dimension taps a person’s
ability to withstand stress.people with positive tends to
be calm ,self confident secure.those with high negative
tend to be nervous,anxious,deprssed ans insecure.
 Openness to experience:The final dimension addresses
one’s range of interests and fascination with novelty.

60. The Big Five Model of Personality
Dimensions
Extroversion
• Sociable, gregarious, and assertive
Agreeableness
• Good-natured, cooperative, and trusting
Conscientiousness
• Responsible, dependable,
persistent, and organized
Emotional Stability
• Calm, self-confident, secure under stress
(positive), versus nervous, depressed, and
insecure under stress (negative)
Openness to
Experience
• Curious, imaginative, artistic, and
sensitive

61. How Do the Big Five Traits Predict
Behavior?
 Research has shown this to be a better framework.
 Certain traits have been shown to strongly relate to
higher job performance:
 Highly conscientious people develop more job
knowledge, exert greater effort, and have better
performance.
 Other Big Five Traits also have implications for work.
 Emotional stability is related to job satisfaction.
 Extroverts tend to be happier in their jobs and have good
social skills.
 Open people are more creative and can be good leaders.
 Agreeable people are good in social settings.

63. Measuring Personality
There are three main ways personality is measured:
 Self-report surveys
 Observer rating surveys
 Projective measures(Rorschach Inkblot test and
Thematic apperception Test)

64. Other Personality Traits Relevant to
OB Core Self-Evaluation
 The degree to which people like or dislike themselves
 Positive self-evaluation leads to higher job performance
 Machiavellianism
 A pragmatic, emotionally distant power-player who believes that
ends justify the means.
 High Machs are manipulative, win more often, and persuade more
than they are persuaded. Flourish when:
 Have direct interaction
 Work with minimal rules and regulations
 Narcissism
 An arrogant, entitled, self-important person who needs excessive
admiration.
 Less effective in their jobs.

65. More Relevant Personality Traits
 Self-Monitoring
 The ability to adjust behavior to meet external,
situational factors.
 High monitors conform more and are more likely to
become leaders.
 Risk Taking
 The willingness to take chances.
 May be best to align propensities with job requirements.
 Risk takers make faster decisions with less information.

66. Locus of Control
Locus of Control
The degree to which people believe they
are masters of their own fate.
Internals
Individuals who believe that they
control what happens to them.
Externals
Individuals who believe that
what happens to them is
controlled by outside forces
such as luck or chance.

67. Self-Esteem and Self-Monitoring
© 2005 Prentice Hall Inc. All rights reserved. 4–68
Self-Esteem (SE)
Individuals’ degree of liking
or disliking themselves.
Self-Monitoring
A personality trait that measures
an individuals ability to adjust
his or her behavior to external,
situational factors.

68. Risk-Taking
 High Risk-taking Managers
 Make quicker decisions
 Use less information to make decisions
 Operate in smaller and more entrepreneurial
organizations
 Low Risk-taking Managers
 Are slower to make decisions
 Require more information before making decisions
 Exist in larger organizations with stable environments

69. Personality
Types
© 2005 Prentice Hall Inc. All rights reserved. 4–70
Type A’s
1. are always moving, walking, and eating rapidly;
2. feel impatient with the rate at which most events take place;
3. strive to think or do two or more things at once;
4. cannot cope with leisure time;
5. are obsessed with numbers, measuring their success in terms
of how many or how much of everything they acquire.
Type B’s
1. never suffer from a sense of time urgency with its
accompanying impatience;
2. feel no need to display or discuss either their achievements or
accomplishments;
3. play for fun and relaxation, rather than to exhibit their
superiority at any cost;
4. can relax without guilt.