Organizational+behavior

WHAT IS AN ORGANIZATION?
They are groups of people who work independently towards some purpose.
They have structured patterns of interactions, meaning that they expect each
other to complete certain tasks in an organized way.
Eg : People who have lot of money may invest jointly to build a resort at
Lonavala.
A group of people with similar beliefs may build a place of workship.

WHAT IS ORGANIZATIONAL BEHAVIOUR?
Concerned with the study of how people- individuals and groups act in
an organization.
It is a combination of different disciplines (psychology, sociology, social
psychology, anthropology, political science and economics.
It attempts to understand human behavior in organizational settings
(ability, biographical characteristics), the organization itself (work
specialization, departmentalization)the individual –organization interface
(conflict, leadership).

Organizational Behaviour is a field of study
that investigates the impact that
individuals, groups and organizational
structure have on behaviour within an
organization, for the purpose of applying
such knowledge towards improving on
organizational effectiveness

The above definition has three main elements :
 Study of individuals and group
Impact of organizational structure on human behaviour
Application of knowledge to achieve organizational
effectiveness

It is a combination of different disciplines (psychology, sociology, social
psychology, anthropology, political science and economics.
a.Psychology – It is the study of individual human behavior. Psychologists
study the perceptions , personality, emotions of human behavior.
a.Sociology – It is the study of individuals in relation to their fellow
human beings. Some areas that sociologists study are conflicts, group
dynamics, teamwork etc.

c. Social Psychology – It is a blend of Psychology and Sociology. It focuses
on influence of people on one another. Some of their areas of study are
understanding and changing attitudes, building trust etc.
d. Anthropology – It is the study of societies to learn about human beings
and their activities. It focuses on understanding differences in
fundamental values, attitudes and behaviors between people in different
countries and organizations.
e. Political Science – It studies the behavior of individuals and groups
within a political environment. Topics such as structuring of conflict, how
people manipulate power for individual interests.

FOUNDATIONS OF ORGANIZATIONAL
BEHAVIOUR?
Basic assumptions distinct to the discipline are:
1.Individual differences –
Each person in the world is individually different in several ways
(intelligence, personality, etc)
From the day of birth each person is unique and individual experiences
after birth make people even more different.
If there were no individual differences a standard way of dealing with
employees could be adopted.

BEHAVIOUR?
2. A whole person
When an individual is hired their social background, likes and dislikes ,
pride are also hired.
Hence managers must try to develop a better employee out of a worker
and also a better person

BEHAVIOUR?
3. Caused behavior
There is a cause behind a persons behaviour. This behaviour is directed
towards some one that the employee believes, (whether right or wrong).
Egs: when a person throws a stone at a bus, comes late to work, creates
conflicts with colleagues there is a cause behind it.
Managers must realize this principle and tackle the issue accordingly.

BEHAVIOUR?
4. Organizations are social systems
Behaviour of people in organizations are influenced by their groups as
well as their individual drives.
Two types of social systems exist in an organization – formal and
informal
All parts of the system are interdependent and are subject to influence
by any other part.

BEHAVIOUR?
5. Mutuality of interest
Organizations need people and people also need organizations.
People see organizations as a means to help them reach their goals,
while at the same time organization need people to help attain
organizational objectives.

CHALLENGES FACED BY OB SPECIALIST
OB CHALLENGES
MANAGING
DIVERSITY
ETHICAL
BEHAVIOR
TECHNOLOGY
CHANGED
EMPLOYEE
EXPECTATIONS
GLOBALISATION
DEMOGRAPHICS OF
WORKFORCE

GLOBALIZATION
1. Increased foreign assignments – manage workforce with
different needs, aspirations and attitudes.
2. Working with people from different cultures – Even in our own
country we get an opportunity to work with bosses, seniors who are
raised in other countries.
3. Overseeing movement of jobs to countries with low cost labour –
Jobs tend to flow to places with relatively low labor costs.
Eg: Samsung

MANAGING WORKFORCE DIVERSITY – NO LONGER A CHOICE
TODAY
•heterogeneous mix of people (age, gender, race, national origin,
disability ,educational, mindsets etc) .
•It should be comprehensive process for managing differences in 2
dimensions, primary (age, disability, national origin, education, gender etc )
and secondary (mindsets, values systems, ethics etc)
• Eg : Pepsico features job posting only for women on the site
jobstreet.com , Titan, Mphasis

IMPROVING QUALITY AND PRODUCTIVITY
1.Increased competition is forcing managers to improve their
organizations productivity and the quality of products and services they offer.
2. Intense focus on customers
3. Concern for continuous improvement
4. Improvement in the quality of everything the organization does.
5. Accurate measurements
Eg: Revival of TATA Engineering

IMPROVING CUSTOMER SERVICE
1. The companies leaders decide to make customer service as their priority. They
need to demonstrate the same in their actions and words.
2. An employees behavior and attitude significantly contribute in customer
satisfaction. A lot of companies have failed because they failed to please their
customers.
3. Management needs to create a customer- responsive culture.

IMPROVING PEOPLE SKILLS
1.People skills are the ability to understand and communicate with others. They
are the most important drivers of leadership success.
2.A lot changes with the way we interact personally with people.
3.Some of the people skills required by managers at work would be ways to
motivating people, maintaining rapport with management and team members.

EMPOWERING PEOPLE
1.Traditional allurements such as job security and attractive remuneration are
not the only benefits that attract, retain or motivate employees
2. Employees today demand empowerment and expect quality of status with the
management.
3. Managers must learn how to give up control and employees must learn to take
up responsibility for their work.

PROMOTING ETHICAL BEHAVIOR
•Members of organizations are increasingly finding themselves facing ethical
dilemmas- situation in which they are required to define right and wrong
conduct.
•What constitutes ethical behavior has never been clearly defined . It depends on
certain factors such as person’s characteristics, cultural influences, and external
factors .
Eg: Wipro Ombuds, TATA

ETHICAL DILEMMA
SAM WORKS FOR YOU.. HE IS TECHNICALLY CAPABLE AND A GOOD
WORKER… BUT HE DOES NOT GET ALONG WELL WITH OTHERS IN THE
TEAM… WHEN SAM HAS AN OPPORTUNITY TO GET A TRANSFER, YOU
ENCOURAGE HIM TO TAKE IT… WHAT WOULD YOU SAY TO SAM’S
POTENTIAL SUPERVISOR WHEN HE ASKS ABOUT SAM??

TIGER PRIDE
SHEEP LOVE
COW WORK
PIG MONEY
HORSE FAMILY

PERSONALITY
Its beauty that captures
your attention….
Personality that captures

PERSONALITY
Personality refers to the set of traits and behaviour that characterize an
individual.
It has both internal and external elements. The external traits are the
observable behaviours that we notice in an individuals personality. Eg:
Aggression, being an introvert, being an extrovert etc.
Internal traits represent the thoughts, values and genetic characteristics that
we infer from the behaviours.
The characteristics that are exhibited in a large number of situations are
called personality traits.

DETERMINANTS OF PERSONALITY
Personality
Heredity
Social
Family
Situational
Environment

Heredity
•Heredity refers to those factors that were determined at conception.
•Physical attributes like height, weight, skin colour, facial attractiveness,
temperament, energy level, intelligence etc are some of the characteristics
that are generally considered to be imported either completely or partially
from one’s parents.

Social
•Socialization process begins with the intial contact between a mother and
her infant, thereafter other members of the family followed by the social
groups (school, college, friends, colleagues etc)
•They play a very important role in personality development of an
individual.

Environment
•Environment includes culture which influences norms, attitudes and
values that are passed along from one generation to the next.
•While growing the child learns to behave in ways expected by the culture
of the family in which he/she is born.
•Qualities such as aggression, cleanliness, moral values etc are
determined by culture.

Family
•Family (parents and siblings )has considerable influence on personality
development of an individual particularly in the early stages.
•Family is the first characteristic affecting an individuals personality after
hereditary characteristics.
•For Eg: Children may develop negative personalities if their parents don’t
have a good relation.

Situational Considerations
•It is the immediate situation which may finally dominate the personality
of an individual.
•The different demands of different situations call forth different aspects
of ones personality.
•For eg: while at a job interview or a temple some behaviours may be
constrained while at a party or picnic it may be constrained less.

PERSONALITY
THE BIG FIVE MODEL OF PERSONALITY
A few personality experts tried to condense the many personality traits
described over years into 5 abstract personality dimensions known as
‘THE BIG 5’ personality dimension.
EXTROVERSION
AGREEABLENESS
CONSCIENTIOUSNESS
EMOTIONAL STABILITY
OPENNESS TO EXPERIENCE

PERSONALITY
EXTROVERSION
This dimension captures one’s comfort level with relationships.
Characteristics of a person with an extrovert personality include outgoing,
talkative, assertive etc.
Introverts tend to be reserved, timid and quiet.

PERSONALITY
AGREEABLENESS
This refers to a persons ability to get along with others.
Highly agreeable persons value harmony more than they value having their say
or their way.
People who score more on agreeableness focus more on their own needs then
the needs of others.
Eg: Trusting, good natured, cooperative, softhearted

PERSONALITY
CONSCIENTIOUSNESS
This dimension refers to the number of goals that a person focuses on.
A highly conscientious person focuses on relatively few goals at one time.
Since a person with low conscientious person nature tends to focus on too many
goals at one time, the individual is more disorganized, careless and
irresponsible.
Eg: Dependable, responsible, persistent, achievement oriented

PERSONALITY
EMOTIONAL STABILITY
This dimension focuses on an individual’s ability to cope with stress.
Individual with positive emotional stability tends to be more calm, enthusiastic
and secure.
A person with low emotional stability tends to be nervous, depressed and
insecure.
Eg: relaxed, worried, calm, secure

PERSONALITY
OPENNESS TO EXPERIENCE
Extremely open people are fascinated by novelty and innovation.
They are willing to listen to new ideas and to change their own ideas, beliefs and
attitudes in response to new information.
People with low levels of openness tend to be less receptive to new ideas and
less willing to change their minds.
Eg: broadminded, imaginative, sensitive

PERSONALITY
MATCHING PERSONALITIES WITH
JOBS
Holland’s Typology of personality
•Realistic - Prefers physical activities that require skill, strength and
coordination. Eg: farmer, mechanic
•Investigative – Prefers activities that involve thinking, organizing and
understanding. Eg: economist, mathematician
•Social – Prefers activities that involve helping and developing others.
Eg : Counselor, social worker

PERSONALITY
MATCHING PERSONALITIES WITH
JOBS
Holland’s Typology of personality
•Conventional – Prefers rule regulated, orderly and unambiguous activities.
Eg : accountant, file clerk
•Enterprising – Prefers verbal activities where there are opportunities to
influence others and attain power. Eg : Lawyer, real estate agent, sales person
•Artistic – Prefers ambiguous and unsystematic activities that allow creative
expression . Eg: Painter, musician, interior decorator

PERSONALITY ATTRIBUTES INFLUENCING OB
Certain personality attributes are more powerful in an organization.
Locus of Control
The belief that events are either within one’s control or not. i.e a persons
perception of the source of their fate is termed as locus of control.
Strong internal locus of control consists of people who believe that they
control their destinies.
Strong external locus of control consists of people who believe that their
lives are being controlled by outside forces.

Introversion and Extroversion
They are the most common descriptions of personality traits.
These terms are mostly associated with an individuals sociability and
interpersonal orientation.
Extroverts are gregarious and sociable while introverts are shy, quiet and
retiring.

Characteristics of internal locus of control :
•More control on their behavior
•Active in seeking information before taking decisions
•Socially more active
•More satisfied with their jobs
•More reliant on own judgement
•Prefer achievement in skill than chance

Self- Esteem
Feeling of like or dislike of oneself.
It is crucial and is a cornerstone of positive attitude.
Directly related to the desire for success
Individuals with high self esteem are likely to choose unconventional jobs
Low Self esteem individuals are more susceptible to external influence

Risk taking
People differ in their willingness to take chances.
Managers in larger organizations tend to be risk averse , especially in
contrast to growth oriented entrepreneurs
It makes sense to align risk taking propensity with specific job demands.

Self monitoring
•.Self monitoring refers to an individuals ability to adjust his or her
behaviour to external or situational factors.
•Individuals high in self monitoring can show considerable adaptability
in adjusting their behaviour.
•People with low self monitoring tend to display their true dispositions and
attitudes in every situation

Proactive
Proactiveness is an individuals propensity to take actions / initiative to
improve their current circumstances or create new ones
They identify opportunities, show initiative, take action and persevere until
meaningful change occurs.
They are more likely to be seen as leaders and more likely to act as a change
agent.
Actions of pro-actives can be positive or negative.

Type A personality
Are always walking, moving and eating rapidly.
Feel impatient with the rate at which most events take place
Strive to think or do many things at once
Cannot cope with leisure time
Are obsessed with measuring their success in terms of how many or how
much of everything they acquire.

Type B personality
Never suffer from a sense of time urgency with its accompanying impatience
Feel no need to display or discuss either their achievements or
accomplishments unless such exposure is demanded by the situation.
Play for fun and relaxation, rather than to exhibit their superiority at any
cost.
Can relax without guilt

EXERCISE
Below is a list of characteristics that are often used to indicate gender differences.
If u believe that a characteristic is more like a male mark an M. Mark an F if you
believe a characteristic is more like a typical female…. Mark N if you believe there
is no difference
1. _____________ Aggressive
2. _____________ Dominant
3. _____________ Excitable in a major crisis
4. _____________ home oriented
5. _____________ high mechanical aptitude
6._____________ feelings easily hurt
7._____________ never cries

8. ___________ strong need for security
9. ___________ Indifferent to others approval
10. __________ Likes maths and science
11. __________ Emotional
12. ___________ Has difficulty making decisions.

SENSATION & PERCEPTION
People use sensory organs to sense – eyes to see, nose to smell, tongue to
taste, skin to feel and ears to hear. Thus sensation deals with the basic
behaviour of an individual caused by his physiological functions.
Perception is when an individual takes in the raw data through his senses
and then refines, modifies or completely alters it by his thought process.
Eg : Bad smell , taste of the food, seeing 60 students in a class

PERCEPTION
Perception is a process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment.
In simple terms perception is the ability to see and hear things through the
senses.
It is our interpretation of reality.
People’s behaviour is influenced by their perception of reality rather than
the actual reality.

FACTORS INFLUENCING
PERCEPTION
PERCEIVER-
When an individual looks at a target and attempts to interpret what he or
she sees .
This interpretation is heavily influenced by the personal characteristics of
an individual perceiver.

FACTORS INFLUENCING
PERCEPTION
TARGET-
Characteristics of the target being observed can affect what is perceived.
Because targets are not looked at in isolation, the relationship of a target
to its background influences perception.

FACTORS INFLUENCING
PERCEPTION
SITUATION-
The context in which we see events is also important.
Eg: A 22 year old in a evening party vis-a –vis a lecture on Monday
morning.
Eg: The boss may perceive young people to be lazy in office
Eg: I lose a match. I thought ‘we have been a bad team’

THE PERCEPTUAL PROCESS
1.RECEIVING STIMULI –
We are constantly bombarded with various stimuli..
These stimuli enter our organism through the sensory organs- vision,
touch, smell, hearing, taste
Stimuli can be internal and external .

2. SELECTING STIMULI –
Not all the stimuli received by the human organism are accepted by it.
The process of filtering information received by our senses is called
selecting stimuli or selective attention.
Several internal and external factors influence selecting stimuli

External factors seeking attention:
a.Location
b.Colour
c.Size
d.Contrast
e.Motion
f.Repetition
g.Familiarity

Internal factors seeking attention:
a.Learning
b. Age difference
c. Interest
d. Ambivalence
e. Paranoid perception

3. THE PROCESS OF INTERPRETING
After the data has been received and organized, the perceiver interprets or
assigns meaning to the information.
In fact perception is said to have taken place only after the data has been
interpreted.
There are some factors that contribute towards interpretation of data.

Important factors contributing to the interpretation are:
a.PERCEPTUAL SET – Previously held beliefs about objects/ situations
Eg: A manager may have developed a general belief that workers are lazy

b. ATTRIBUTION – Process by which an individual assigns causes to the
behaviour he or she conceives.
Eg: A nurse drops a tray of medicines will be excused if the incident is
perceived as cause of slippery floor.
A manager decides an employee who performs a task poorly is a
bad worker.
I failed the CET twice, may be I was not lucky.

c. STEREOTYPING – Tendency to assign attributes to someone solely on
the basis of category of people to which that person belongs.
Eg: Men cannot be good HR Managers
Men are dominant
Women are emotional
Japanese are hard working.

d. HALO EFFECT – When we consider a person good (or bad) in one
category we are likely to make similar evaluations in other categories too.
Eg: If the manager of a restaurant is good at customer service, it
doesn’t mean the food is tasty, the ambience is good.

e. PERCEPTUAL CONSTANCY – According to this principle, the
perception of elements like size, shape, colour, brightness of an object
remains constant and does not change from one individual to another.
Eg: if a photograph of a person is printed in a newspaper and although the
photograph measures only 2-3 inches in length, we still perceive the
individual to be between 5 to 6 feet in height
We tend to identify an apple just by the sight of it. It doesn’t
matter whether we see a picture of a fruit or the fruit itself.

f. PROJECTION – Under certain conditions, people tend to see in
another person traits that they themselves possess.
Eg: An individual who is himself not very energetic may see others as lazy.
One who is dishonest may be suspicious of others may perceive
dishonest intentions in others.

4. Checking-
After data has been received and interpreted the perceiver tends to check
whether his interpretations are right or wrong.
It is checked either by putting a series of questions to himself or checking
with others.

4. Reacting-
The last phase in perception is reaction.
The perceiver will indulge in some action in relation to his /her perception
The action is positive when the perception is favourable and negative when
the perception is unfavourable.
Eg: A worker responds to a manager positively provided his or her
understanding about the boss is favourable.

MANAGING PERCEPTION
1.Seek information from various sources to confirm or disconfirm personal
impressions of a decision situation.
2.Be empathetic- be able to view the situation as it is perceived by other
people.
3.Influence perceptions of other people when they are drawing incorrect or
incomplete impressions of events.
4.Avoid common perceptual distortions

MANAGING PERCEPTION
5. Avoid inappropriate attributions
6. Diversity Management programs
7. Know yourself

INTUITION
Intuitive decision making is an unconscious process created out of
experience.
Intuition can be a powerful force in decision making.
People most likely use the intuition process when:
• a high level of uncertainty exists.
• when variables are less scientifically predictable
• when facts are limited
• when time is limited and there is pressure to come up with the
right decision

0 10 20 30 40 50 60 70 80 90 100
VERY IMPORTANTNOT IMPORTANT SOMEWHAT IMPORTANT
1. __________ An enjoyable , satisfying job
2. ___________ A high paying job
3. ___________ A good marriage
4. ___________ meeting new people, social events
5. __________ involvement in community activities.
6. __________ my relationship with GOD

7. __________Exercising, playing sports
8. __________ Intellectual development
9. __________ A career with challenging opportunities
10.___________ Nice cars, clothes, home etc
11. ___________ Spending time with family.
12. _____________having several close friends.
13. __________volunteer work for non profit organ izations.
14. __________Meditation, quite time to think, pray etc
15. __________A healthy balanced diet
16. __________ Educational reading, TV, self improvement
programs

ASSESSMENT
Questions 1,2,3,4,5
A-1 F-2 O-3 N -4
Questions 6,7
A-4 F-3 O-2 N- 1
Questions 8,9 and 10
A-1 F-2 O-3 N -4

ASSESSMENT
32-40
Congrats! You have a winners attitude. Take pride in your approach to life
and you will enjoy success
23-31
You have a tendency to feel dissatisfied with your achievements. Put in a
little conscious effort and you will emerge as a winner
10-22
There is a need for a change in attitude. Gradually try to change your
mindset. You should make a conscious effort to remain optimistic if you
want a successful life

ATTITUDES AND VALUES
Attitudes are tendencies to feel and behave in a particular way towards people,
objects, ideas or events.
Attitudes endure, unless something happens.
Attitudes are evaluative statements that can either be favourable or
unfavorable.
All people, irrespective of their status or intelligence, hold attitudes
An attitude may involve a prejudice- in which we prejudge an issue without
giving unbiased considerations to all the evidence.

VALUES
Values represent stable, long lasting beliefs about what is important
Values are general beliefs about about life whereas attitudes are directed towards
specific events or people.
Values are judgemental in nature since they convey an individuals ideas
regarding what is right, good or desirable.

VALUES
There are two types of values :
a.Terminal Values – They are desired states of existence that we think are worth
striving.
Egs : A world of comfortable life, no bribe
b. Instrumental Values – They are desirable modes of behaviour that help us
reach the objectives of terminal values.
Eg: Polite

COMPONENTS OF ATTITUDES
AFFECTIVE
BEHAVIOUR
A
T
T
I
T
U
D
E
COGNITIVE

ABC MODEL
The 3 components of attitude together form the ABC Model where
A = Affect
B = Behaviour
C = Cognition
Eg : Assess one employees attitudes towards flexitime at work. We would
determine :
•How they feel about flexitime ? (affect)
•Whether they would use flexitime ? (behaviour)
•What they think about the policy ? (cognitive)

COMPONENTS OF ATTITUDES
AFFECTIVE COMPONENT
The feelings, sentiments, moods and emotions about some idea, person, event or
object.
COGNITIVE COMPONENT
The beliefs, opinion, knowledge or information held by the individual.
BEHAVIOURAL COMPONENT
The dispositions to get on a favorable or unfavorable actions.

FORMATION OF ATTITUDE
ATTITUDES ARE ACQUIRED BUT NOT INHERITED
Direct experience with the object
Attitudes can develop from a personally rewarding or punishing
experience with an object.
Employees form attitudes about jobs on their previous experiences.
Attitudes based on experience are difficult to change.

Vicarious learning
This refers to formation of attitudes by observing behaviour of others and
consequences of that behaviour.
We could also learn vicariously through television, films and other media.

Family and peer groups
A person may learn attitudes through imitation of parents.
If parents have a positive attitude towards an object, the child is likely to
adopt a similar attitude.
Egs: Attitudes regarding occupations, tolerance, education etc

Neighborhood
The neighborhood we live in has a certain structure in terms of its having
cultural facilities, religious grouping etc.
The neighbors tolerate or deny certain attitudes and behavior and as a
result we may either northerners or southerners.
The conformity or rebel in some respects is the evidence of the attitudes
we hold.

Mass communications
All varieties of mass communication – television, radio, newspapers feed
their audiences large quantities of information.
The presentation of news or information is constructed so as to cater to
the attitude of the audience.

TYPES OF ATTITUDE
Job related attitudes at work can be discussed as :
1.JOB SATISFAC TION
Job satisfaction refers to an individual’s general attitude towards his or
her job.
It results when an individual perceives that his job provides him with what
is important to him.
It is an emotional response to a job. This response can be seen.

TYPES OF ATTITUDE
The job satisfaction that an individual derives from is job depends on the
extent to which outcomes meet his expectations.
There are 6 important characteristics of a job that elicit favorable or
unfavorable responses from employees:
a.The work itself
b.Pay
c.Promotion opportunities
d.Supervision
e.Coworkers
f.Working conditions

JOB SATISFACTION AND PRODUCTIVITY
There is no strong relation between job satisfaction and productivity.
There are other mediating relationships like rewards that lead to an
increase in productivity.
Job satisfaction does contribute in an overall improvement in
organizational performance.

JOB SATISFACTION AND TURNOVER
There exists a moderate relationship between satisfaction and turnover.
High job satisfaction will not eliminate employee turnover but will only
help to reduce the rate of turnover.
Job dissatisfaction will encourage employees to switch organizations at the
slightest opportunity for better prospects.
A country’s economy and the employment scenario also influences
turnover.

JOB SATISFACTION AND ABSENTEEISM
Job satisfaction and absenteeism have an inverse relationship.
A high level of job satisfaction leads to low absenteeism and a low level of
job satisfaction results in high absenteeism.
The extent to which people consider their jobs important, also have an
impact on absenteeism.

ORGANIZATIONAL COMMITMENT
Organizational commitment refers to an employees satisfaction with a
particular organization and its goals.
A person with a high level of organizational commitment is a strong
supporter of the values of the organization.
Personal variables include - his tenure in the organization, his attitude
towards the job
Organizational variables include – leadership style of the supervisor.
Non organizational factors include – state of job market.

FUNCTIONS OF ATTITUDES
ATTITUDE
ADJUSTMENT
KNOWLEDGE
EGO DEFENSIVE
VALUE EXPRESSION

ADJUSTMENT FUNCTION-
People modify their attitudes to adjust to their work environment.
When superiors treat employees fairly, the employees tend to develop
positive attitude but if management fails to treat them well they develop a
negative attitude.

EGO-DEFENSIVE FUNCTION-
Attitudes help employees defend their self image and protect their ego.
Example: A manager who is poor at decision making process.
VALUE-EXPRESSIVE FUNCTION –
People may express their values through their attitudes.

KNOWLEDGE FUNCTION-
Attitudes provide a standard of reference which allows people to
understand and explain their environment.
Eg: Union leader

SITUATION
SUPPOSE YOU HAVE AN EMPLOYEE WHOSE LACK OF
COMMITMENT IS AFFECTING OTHERS IN THE WORK GROUP
SUGGEST 3 BEST WAYS YOU WOULD CHOOSE TO CHANGE HIS
ATTITUDE?

MOTIVATION
Motivation can be defined
as :
“the inner force that
drives individuals to
accomplish personal and
organizational Goals”.

MOTIVATION
I started my life as a brew
master looking to brew beer,
your journey can take you
anywhere, but your life should
be an inspiring hope

MOTIVATION
Motivation in simple terms may be understood as the set of forces that
cause people to behave in certain ways.
Every individual has different motivational drives but the situation also
plays an important role in determining a persons motivational level.
Motivation consists of 3 interacting and interdependent elements – needs,
drives and incentives
Needs – An imbalance leads to the creation of a need. For Eg : The
need for water arises when a person is thirsty.

MOTIVATION
Drives– Drives or motives are two terms that can be used
interchangeably.
Drive is a condition which causes a person to work in a particular
direction.
These motives push an individual towards achieving a certain goal or
accomplishing a certain task.
Drives constitute the core element in motivation.

MOTIVATION
Incentives– Anything that can decrease the intensity of a drive is called an
incentive.
When a person obtains the incentive, the strength of that drive is reduced.
For eg: drinking water helps in achieving balance.

MOTIVATION
Employee Motivation
Intrinsic
Motivation
Extrinsic
Motivation

MOTIVATION
Intrinsic Motivation
Intrinsic motivation is when an individual is motivated by internal factors.
It is a process of satisfaction in which the rewards come from carrying out
an activity than a result of an activity.
It holds no promise of rewards.
Intrinsic motivation however does not mean that a person will not seek
rewards.

MOTIVATION
Intrinsic Motivation
It is a sense of achievement, commitment ,responsibility, job satisfaction,
purpose, involvement, empowerment and ownership - all the things that
make an employee feel that what they’re doing makes a big difference in
their lives and in the organisation itself.
Those who are intrinsically motivated derive satisfaction from the value of
their work.
Praise, training programs, creation of informal leadership roles helps an
employee to be intrinsically motivated.

MOTIVATION
Extrinsic Motivation
Extrinsic motivation refers to motivation that comes from external factors.
These rewards may provide satisfaction and pleasure that the task itself
may not provide.
An extrinsically motivated person will work on the task even if they have
little interest in it because of the anticipated satisfaction they will get from
the reward.
Eg: A student not interested in OB… however could be motivated due to
grades.

MOTIVATION
The Over justification Effect
The over justification effect occurs when an external incentive such as
money decreases a persons intrinsic motivation to perform a task.
In an over justified effect I contribute my behavior to an extrinsic factor
than to intrinsic reasons.

THEORIES OF MOTIVATION
MASLOW’S NEED HIERARCHY THEORY
Unsatisfied needs can influence behavior. Satisfied needs do not act as
motivators.
Since needs are many, they are arranged in an order of importance.- hence
need- hierarchy theory of motivation.
The person advances to the next level of hierarchy , or from basic to
complex only when the lower level need is satisfied.
As the person moves up the hierarchy the more humanness he will display.

Physiological need -
The most basic, powerful and obvious of all human needs is the need for
physical survival.
Need for food, water, oxygen, sleep are included in this group.
In an organization, physiological needs are represented by employees
concern for salary and basic working conditions.

Safety need –
Once physiological needs are met, another set of motives called safety or
security needs become motivators.
These needs are most readily observed in young children because of their
dependence on adults.
The acquisition of insurance, medical policies, owning of a house are
included in this group.
In an organization, safety needs are represented by the preference for
secured income, safe working conditions, job security, provident funds etc.

Social need –
Social needs arise when physiological and safety needs are satisfied.
An individual motivated on this level longs for affectionate relationship
with others, crave to acquire a place in the family.
In an organization context, social needs represent the need for a
compatible work group, peer acceptance and friendly supervision.

Self Esteem need –
Self Esteem need has been categorized into two subsidiary sets : self
respect and self esteem from others- self respect and esteem from others.
Self respect includes things as desire for competence, independence,
confidence and freedom. (self efficacy)
Esteem from others include prestige, attention, status, reputation and
appreciation
In the workplace self esteem needs correspond to job title, recognition
from supervisor and publicity in company publications.

Self Actualization need –
Once all the 4 needs are met, the need for self actualization comes in the
forefront.
Self actualization is the desire to become everything that one is capable of
becoming.
It is to become the total kind of person that one wants to become to reach
the peak of ones potential.
In an organization self actualization needs to correlate to desire for
excelling oneself in ones job.
.

EXPECTANCY THEORYEXPECTANCY THEORY
Expectancy theory suggests that a person's behaviour is based on 3factors –Expectancy theory suggests that a person's behaviour is based on 3factors –
Expectancy, Instrumentality and ValenceExpectancy, Instrumentality and Valence
Expectancy is similar to self efficacy. Beliefs about the link between trying toExpectancy is similar to self efficacy. Beliefs about the link between trying to
perform a behavior and actually performing well are called expectancies.perform a behavior and actually performing well are called expectancies.
A belief that performing a given behavior is associated with a particular outcome isA belief that performing a given behavior is associated with a particular outcome is
called instrumentality.called instrumentality.
Valence is the value that a person places on an outcome.Valence is the value that a person places on an outcome.
.

.
EXPECTANCY INSTRUMENTALITY VALENCEX X
MOTIVATION

LEADERSHIP
•Leadership refers to the ability of one individual to influence others.
•The influence is exercised to change the behavior of others.
•The person influencing others possesses a set of qualities which he/she
uses to influence others.
•It is a group phenomenon. It involves interaction between two or more
people.
.

LEADERSHIP
3 TYPES OF INFLUENCE PATTERNS
Compliance – It occurs when people are influenced to do something
against their will because they are forced into doing that.
People may obey because the repercussions of failure to do so may have
serious consequences.
Compliant behaviors get easily extinguished when the leader is out of
sight.
.

LEADERSHIP
Identification –It relates to the situation when people perform what the
leader wants them to because they like him / her.
People want to put forth the effort to please the person.
This liking may be either because the leader is attractive, likeable, acts a
role model.
Such a leader has charisma and people voluntarily obey him.
.

LEADERSHIP
Internalization– It occurs when followers are convinced that acting as per
leaders directions serves their interests best.
In such cases the followers pay heed to the managers wishes, trusting her
judgement and advice.
.

Interpersonal role
Informational role
Decisional role
Communication
Traditional Management
Human Resource Management
Networking
.

.
LEADERSHIP STYLES
•Leadership style is the typical approach a particular person uses to lead
people.
•The behavior a leader exhibits during supervision of subordinates is
known as leadership style.
•This study focuses in what the leader actually does in getting work
accomplished through people.
•A leader should change his style to suit the situation.

LEADERSHIP STYLES
.
AUTOCRATIC LEADERSHIP
•Leaders who adopt this style retain all the authority and decision
making power.
•They do not consider employees’ suggestions, opinions or views.
•They instruct the subordinates on ‘what to do’ as well as ‘how to do’ a
job
•It is useful only when decision has to be made immediately and the
time and situation does not permit consultation and discussion.
•Eg : Adolph Hitler , Saddam Hussain

LEADERSHIP STYLES
.
CONSULTATIVE or PARTICIPATIVE LEADERSHIP
•Consultative leaders encourage employees to participate in decision
making.
•The leader listens to subordinates ideas and opinions, but takes the
final decision himself.
•They allow both upward and downward communication.
•He encourages his subordinates to express their suggestions, ideas
and feelings

LEADERSHIP STYLES
.
BUREAUCRATIC LEADERSHIP
•In this style of leadership leaders set certain rigid rules and
regulations and procedures. Both leaders and their subordinates follow
these rules.
•They carry out their tasks in a mechanical way, without a sense of
commitment towards the organization.
•Leaders are empowered on the basis of the position they hold.
•Followers are promoted based on their ability to conform to the rules.

LEADERSHIP STYLES
.
MUSHROOM MANAGEMENT
•In the mushroom management style you get to do all the work that the
leader does not want to do.
•They do not communicate so you are not aware of their plans or
anything that might be going on in an organization.
•Mushroom managers are often too concerned about their own career
and image.
•Anyone appearing as a threat to them will be easily held back.

LEADERSHIP STYLES
.
MICRO MANAGEMENT
•The manager in question acts as if the subordinate is incapable of
doing the job, giving close instructions and checking everything the
person does.
•They seldom praise and often criticize.
•A minor error is normally taken as an evidence of the persons total
incompetence.

LEADERSHIP STYLES
.
•SITUATIONAL LEADERSHIP
•There is no one right way to lead and manage all situations.
•A good leader will find themselves switching between styles according
to the people and work they are dealing with.
•To choose the most effective leadership style, one must consider:
•The skill levels and experience of the members of your team
•The work involved , Organizational environment.

LEADERSHIP STYLES
.
Transformational leadership is a leadership
when one or more persons engage with others
in such a way that leaders and followers raise
one another to higher levels of motivation
and morality.
- Narayan Murthy

LEADERSHIP STYLES
.
TRANSFORMATIONAL LEADERSHIP
•Transformational leadership is the ability is to get people to
want to change, to improve and be led.
•While this leader seeks to transform the organization , there is a
promise to the followers too.
•They inspire the team with a shared vision of the future.
•They are highly visible and spend a lot of time communicating.

LEADERSHIP STYLES
.
•Transformational leaders do accept that they there will be failures
along the way.
•They are happy as long as progress is made.
•They are very careful on building trust and their personal integrity is
a part of the package.
•They are good at expressing complicated goals and objectives in
simple terms.
•They appreciate and encourage careful problem solving among their
followers.

CONTINGENCY APPROACHES TO LEADERSHIP
.
FIEDLER’S CONTINGENCY MODEL
According to this model leadership requirements depend on the
situation facing the leader.
The choice of the most appropriate style of leadership depends on
whether the overall situation is favorable or unfavorable to the leader.
The favorability is analyzed based on the following parameters:
Leader- Member relationships – This parameter depends on
the extent to which a leader is accepted by his subordinates.

.
Degree of task structure – This refers to the degree to which the
task on hand can be performed efficiently.
The leaders position - This refers to the power that the leader is
bestowed within the organization.
A situation is considered to be favorable to the leader if the scores on all
the three dimensions are high.

.
LPC score (64 and above) ------ Relationship motivated
LPC score ( 57 or lower) ------------ Task oriented

.
HERSEY AND BLANCHARD’S SITUATIONAL THEORY
According to the situational theory, the maturity level of the
subordinates plays a major role in influencing the leadership style of the
superior.
The ability of an employee to carry out a particular task and the extent to
which he is motivated to perform the task constitutes the maturity of an
individual.
If the manager gives appropriate guidance to an employee, he is likely to
develop the necessary job related abilities in a short time.

.
Since all employees do not have the same level of competency and
commitment leaders have to adopt different leadership styles.
According to this model, leadership styles can be categorized into four
types – telling, selling, participating, delegating
Telling- When an employee is low in his ability to perform as well as
willingness to perform, the manager needs to adopt the telling style i.e
he must constantly give directions to the employee. (low ability-low
willingness)
Selling - When an employee is low in ability but high in willingness to
perform. (low ability- high willingness)

.
Participating- When an employee is capable of performing but not
willing to perform the task. (High ability – low willingness)
Delegate –If an employee is capable, and is also willing to carry out the
task then the manager can simply delegate. (High ability – high
willingness)

LEADER- MEMBER EXCHANGE THEORY
The fact that leaders act very differently towards different subordinates has given
rise to the LMX theory of leadership.
According to George Green and associates, leaders establish a special relationship
with a small group of subordinates.
This small group of subordinates is referred to as the in-group while the rest are
referred to as out group.
The leaders trust the subordinates, who belong to in groups, give them more
attention, interact with them frequently and offer them special privileges.
.

LEADER- MEMBER EXCHANGE THEORY
The out group people get less of the leaders time and attention. Also their
interactions are less frequent.
Research has indicated that generally leaders favor the people who have attitudes
and personality characteristics that are similar to their own.
This theory suggests that the in group people receive high performance ratings and
thus obtain rewards and promotions quickly.
Research has supported the theory by proving that leaders do differentiate among
subordinates not randomly but on the basis of their performance.
.

ORGANIZATIONAL STRUCTURE
 Organizational structure indicates the organization’s hierarchy and authority
structure.
 It is a formal allocation of work roles and administrative mechanisms to control
and integrate work activities.
 It defines how job tasks are formally divided, grouped and coordinated.
 It is an established pattern of relationships among various components or parts
of the organization.

ORGANIZATIONAL STRUCTURE
 Organization structure requires to respond to two basic issues:
 Division of labour among its members
 Coordination of what has been divided
 Organizational structure needs five elements to be addressed:
 Division of labour
 Span of control
 Delegation of authority
 Departmentalization
 Centralization
 Decentralization

WHY ORGANIZATIONAL STRUCTURE?
 Facilitates management
 Encourages growth and diversification
 Facilitates the optimum use of technological
improvement
 Encourages proper use of human resources
 Stimulates creativity

DIVISION OF LABOUR
 Division of labour refers to the process of dividing the total task of an
organization into successively smaller jobs.
 Job Specialization is an0ther term for division of labor.
 Rather than doing the entire job by one individual it is broken down
into steps, each step being completed by a separate individual.
 Individuals tend to perform better and specialize in doing part of an
activity than the entire activity.

DIVISION OF LABOUR
While analyzing the results of a division of labour, a distinction is
made between line and staff activities.
Examples of line activities : painting, engineering, etc
Examples of staff activities : Legal, Accounting, HR etc

SPAN OF CONTROL
 Span of control is also termed as span of authority.
 It refers to the number of subordinates a manager can
effectively supervise.
 Knowing span of control is necessary because managers /
executives have limited time and ability.
 HOW MANY SUBORDINATES CAN A MANAGER
EFFICIENTLY AND EFFECTIVELY SUPERVISE?

SPAN OF CONTROL
 When the span becomes too large, subordinate performance suffers.
 Also when the span is small, it suffers from problems like increased
levels of management, complexity in the vertical communication, and
discouraging subordinate / employee autonomy.
 Experts vary on the ideal size of span of control.
 According to Hamilton’s thesis, “ An average human brain finds it
effective scope in handling from three to six other brains”

DELEGATION OF AUTHORITY
 Delegation of authority answers questions for employees such as “ Who
do I go if I have a problem” or “ Who is my reporting manager”
 Technically it refers to the sharing of power with another for the
performance of certain tasks.
 A manager- superior delegates authority to his subordinates. However
the superior at the same time still retains authority.
 An unbroken line of authority that extends from the top of the
organization to the lowest is called the ‘chain of command’

 It comprises of 3 elements:
 Entrustment of work to another for performance
 Grant of power ro be exercised to perform the work.
 Creation of an obligation on the part of the person accepting
delegation.

CENTRALIZATION
 The term centralization refers to the degree to which decision making is
concentrated at a single point in the organization.
 Top management makes the organization’s key decisions with little or
no input from lower level personnel.
 In other words centralization is the reservation of authority by
individual managers with themselves.
 Absolute centralization is impossible in any organization.

DECENTRALIZATION
 It is a systematic effort to delegate authority to the lower levels of
organization.
 The lower level personnel provide input or are actually given the
discretion to make decision.
 Thus the essence of decentralization is the transference of authority
from a higher level to a lower level.
 Decentralization respects individual employees for their worth.
 Absolute decentralization is impossible.

DEPARTMENTALIZATION
 The basis by which jobs are grouped together is called
departmentalization.
 The central issue regarding departmentalization is the degree of
similarity among the jobs within the department.
 Functional departmentalization – This is the most popular way to
group activities.
 Product departmentalization – Here the departments are created on
basis of products produced by the organization.
 Process departmentalization – In this method various manufacturing
processes are taken as basis for dividing the activities.

 Territorial departmentalization – Territorial departmentalization takes
place when an enterprise is organized into a number of divisions
located in different areas.
 Customer departmentalization – A final type of departmentalization is
to on the basis of particular type of customer the organization seeks to
cater.

LIFE CYCLE OF ORGANIZATION
 Quinn and Cameron have proposed 4 major stages to describe an
organization’s life cycle.
 Entrepreneurial stage
 Every organization starts with the entrepreneurial stage.
 The entrepreneur devotes his/her energy in producing and marketing
the product.
 At this stage size of the organization is too small.
 This stage is also called as ‘One man show’ stage

Collectivity Stage
 At this stage organization tends to take a formal shape.
 Departmentalization starts based on division of labour following a
hierarchy of authority.
 A strong leadership motivates employees to contribute their maximum
for accomplishing organizational goals.

Formalization Stage
 At this stage policies, procedures and rules are finalized to formalize
the whole organization.
 Who will report to whom will be clarified at this stage.
 These help managers exercise control over system and coordinate the
organizational activities effectively.

Elaboration Stage
 The elaboration stage is marked by extensive control systems, rules and
procedures.
 Individual employees often focus on maintaining the organizational
activities.
 In order not to allow organization to decline or die this stage needs to
be periodically revitalized.
 The organization that fails to revitalize itself treads to decline and
ultimately dies.

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