BAHR 2100: ORGANIZATIONAL BEHAVIOR

Business Studies Department

Academic Year: 2017-18
Semester I

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 Table of Contents

Chapter Topic Sub topic Page No.

Introduction 3
Definition 3
Key elements 3
Nature and Scope of Organizational 5
Introduction to Behavior
1 Need for studying Organizational 6
Organizational Behavior
Behavior
Contributing Discipline of 7
Organizational Behavior
Role performed by managers 8
Nature of Motivation 9
Motivational process 10
Need for Motivation 10
Maslow’s Need Hierarchy Theory 11
2 Motivation Herzberg’s Motivation - Hygiene 11
Theory
Mc Cleland’s Theory of Needs 12
Mc Gregor’s Theory X and Theory 13
Y
Nature of Communication 14
Need for Communication 14
3 Communication
Process of Communication 15
Channels of Communication 16
What is Leadership? 18
Characteristics of Leadership 18
Difference between Leadership and 18
4 Leadership
Management
Leadership styles 19
What makes leadership effective? 20

Concept of personality 22
5 Personality Determinants of personality 22
Types of personality 24
6 Perception Difference between Perception and 26
sensation

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 Perceptual process 26
Factors affecting perception 26
Types of Values 29

7 Types of Attitudes 30
Values, Attitudes and Job
Formation of Attitudes 31
satisfaction Job satisfaction 32
Sources of Conflict 34
Conflict Management 34
Advantages of functional conflict 35
8 Conflict management Power 36

Chapter – 1

INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR

Introduction:
All organizations, (business, educational, or government) are social systems. The people run
these organizations. Human behavior is caused and highly unpredictable. Why people behave
as they behave has, therefore, been a subject of much interest and concern since our earlier
years. Therefore understanding human behavior has assumed great significance for the
managers for managing the people effectively. In other words, knowledge about why people

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behave as they behave helps managers extract maximum results from people’s efforts for
accomplishing organizational goals in an effective manner.

DEFINITION:

OB is concerned with the study of human behaviour at work. In other words, OB is the study
and application of knowledge about how people as individuals and as groups behave or act in
an organization.

According to Luthans “OB is directly concerned with the understanding, prediction, and control
of human behavior in the organizations”.

Davis and Newstrom have defined OB as “the knowledge and application of how people act or
behave within organization. It is a human tool for human benefit. It applies broadly to the
behavior of people in all types of organizations such as business, government, schools and
service organizations”.

Key Elements:

There are five key elements in an organization which needs to be managed properly. These are:
People, Structure, Technology, Job and the environment.

People:

People run organizations. People constitute individuals and groups. Though people have
much in common, they differ from each other. One can find glaring differences in people’s traits,
intelligence, personality etc. It is due to these individual differences the manager cannot adopt

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one formula or standard across the board for dealing with the employees. Instead, a manager
has to treat the employees with individual differences differently. Study of work teams and
groups in the organization is also important.

Human behavior is always caused. Behavior is directed towards some goals. There is
always a cause behind every human behavior or act. The manager should know the cause to
solve the problem. People are living, thinking, feeling beings. The manager therefore, needs to
treat them with human dignity, not just like an economic tool.

Structure:

Organizations are social systems. There are two types of social systems that exist side by
side in an organization. One is the formal and the other one is the informal social system. The
formal relationship of people in organizations is called as structure.

Different jobs are directed to accomplish the organizational goals and objectives. All
people performing different jobs at different levels have to be related in some structural way so
that their work can be effectively coordinated.

Technology:

Technology provides the resources with which people work and also affects the tasks
that they perform. The great benefit of technology is that it allows people to do more and
better work. But it also restricts people from doing things in various ways.
Managing technology is an important job of any management. Selection of technology,
procurement, installation, operation and maintenance is important and no compromise should
be made in procuring advanced technology. Based on the technology, an organization should

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formulate job structure and resultant procurement of human resource so that they are
complimentary to each other.

Jobs
Job is an assignment given to an individual. Job will have various tasks inbuilt in it.
Manager, therefore have to manage various tasks to accomplish a particular job. This may form
a part of managerial functions. Adequate delegation, supervision, application of various control
techniques makes the job simpler for the manager.

Environment:
All organizations operate within a given internal and external environment. In fact no
organizations exist alone. An organization is a part of a larger system that contains other factors
or elements such as government, the family, and other organizations. All of these mutually
influence one another in a complex way. Thus organizations are influenced by external
environment.

NATURE AND SCOPE OF OB

OB HAS EMERGED AS A SEPARATE FIELD OF STUDY. The nature it has acquired is identified as
follows.

1. A separate field of study and not only a discipline.

2. An interdisciplinary approach.
3. An applied science.
4. A Normative science.
5. A Humanistic and optimistic approach.
6. A total system approach.

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SCOPE OF OB

1. Individuals; Organizations are the associations of individuals. Individuals differ in many

respects. The study of individuals, therefore, includes aspects such as personality,
perception, attitudes, values, job satisfaction, learning and motivation.
2. Group of individuals; group includes aspects such as group dynamics, group conflicts,
communication, leadership, power and politics and the like.
3. Organization /structure: the study of organization and structure includes aspects such as
formation of organizational structure, culture and change and development.

Personality Group dynamics

Perception Group conflicts
Attitudes Communication

Motivation Leadership
Job Satisfaction Power and politics
Learning Orgl.
Values Behaviour

Structure
Culture
NEED FOR STUDYING ORGANIZATIONAL
ChangeBEHAVIOUR
Development
1. Organizational Behavior helps us to understand others and ourselves in a better way.
2. The knowledge of OB helps the managers to know individual employees better and
motivate employees to work for better results.
3. The most popular reason for studying OB is to learn how to predict human behavior and
then apply in useful way to make the organization more effective.

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 4. Men run all organizations. It is the man working in the organization makes all the
difference. Then, it implies that effective utilization of people working in the organization
guarantees success of the organization.

CONTRIBUTING DISCIPLINES OF OB

1. PSYCHOLOGY: The discipline that has had the greatest influence on the field of OB is
psychology. It is a science that focuses directly on understanding and predicting
individual behavior. It has greatly contributed to intra-personal dynamics of human
behavior. The topics such as personality, perception, attitude, opinion, Learning, and
motivation describe intra personal aspects of OB.
2. SOCIOLOGY: Sociology is the study of people in relation to their fellow human beings.
Whereas psychologists focus on the individuals. sociologists study group of individuals.
The field of sociology has made valuable contribution to our understanding.
3. Anthropology: Anthropology is the study of societies to learn about human beings and
their activities. Anthropology helps us understand differences in fundamental values,
attitudes, and behavior between people in different regions and organizations.

Other social sciences: The other disciplines contributing OB are economics, Political sciences,
and history.

Roles performed by Managers:

In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles
that a manager fills. These roles fall into three categories:

 Interpersonal: This role involves human interaction.

 Informational: This role involves the sharing and analyzing of information.

 Decisional: This role involves decision making.

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 TABLE 1 Mintzberg's Set of Ten Roles

Category Role Activity

Monitor Seek and receive information; scan periodicals and reports;

maintain personal contact with stakeholders.

Disseminator Forward information to organization members via memos,

Informational
reports, and phone calls.

Spokesperson Transmit information to outsiders via reports, memos, and

speeches.

Figurehead Perform ceremonial and symbolic duties, such as greeting

visitors and signing legal documents.

Leader Direct and motivate subordinates; counsel and communicate

Interpersonal
with subordinates.

Liaison Maintain information links both inside and outside

organization via mail, phone calls, and meetings.

Entrepreneur Initiate improvement projects; identify new ideas and

delegate idea responsibility to others.

Disturbance Take corrective action during disputes or crises; resolve

handler conflicts among subordinates; adapt to environments.
Decisional
Resource Decide who gets resources; prepare budgets; set schedules
allocator and determine priorities.

Negotiator Represent department during negotiations of union

contracts, sales, purchases, and budgets.

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 Chapter – 2

MOTIVATION

‘Motivation’ is derived from the word “motive”. Motivation is an inner state of our mind that
activates and directs our behavior. It makes us to move or act. It is always internal to us.
Motivation is one’s willingness to exert efforts towards the accomplishment of his/her goal.

Definition:

1. According to Fred Luthans “Motivation is a process that starts with a physiological or

psychological deficiency or need that activated behavior or a drive that is aimed at a goal
or incentives”.

2. Stephen Robbins states “Motivation is the willingness to exert high levels of effort
towards organizational goals, conditioned by the effort ability to satisfy some individual
need”.

Nature of Motivation

1. Motivation is internal to man: Motivation cannot be seen because it is internal to man.

It activates the man to move toward goal.
2. A single motive can cause different behavior: a person with a single desire to earn
prestige in the society may move towards to join politics, attain additional education
and training etc.
3. Different motives may result in single behavior: The same or single behavior may be
caused by many motives. If a person buys a car, his buying behavior may be caused by
different motives, such as to look attractive, be respectable, differentiate the status and
so on.

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 4. Motives come and go: Motives emerged at a point of time may not remain with the
same intensity at the other point of time.
5. Motives interact with the environment: The environment in which we are at a point of
time may either trigger or suppress our motives.

Motivation Process

Motives: Almost all-human behavior is motivated. Motive prompt people to action. Motives
provide an activating thrust toward reaching a goal. Example: Need for food and water is
translated into hunger or thirst.

Goals: Motives are directed towards goals. Motives generally create a state of Physiological or
psychological imbalance. Example: One’s personality is deprived of friends and companions.

Behavior: Behavior is a series of activities to be undertaken. Behavior is directed towards to

achieve a goal.

MOTIVATION PROCESS

NEED FOR MOTIVATION:

1. People run organizations. Motivated employees are more productive and quality
conscious.
2. It enables managers to understand why people behave as they behave.
3. Appreciation of motivation helps the managers how to motivate their employees.

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 4. Organizations need to have employees with required capability and willingness to use
the advanced complex technology to achieve the organizational goals.
5. It develops employees as future resources.

THEORIES OF MOTIVATION

I. MASLOW’S NEED HIERARCHY THEORY: It is based on the human needs. He classified all
human needs into a hierarchical manner from the lower to the higher order.

1. Physiological Needs: These needs are basic to human life and hence, include food, clothing,
shelter, air water and other necessities of life. These needs relate to the survival and
maintenance of human life.
2. Safety Needs: After satisfying the physiological needs, the next needs felt are called safety
and security needs. These needs find expression in such desires as economic security and
protection from physical dangers.
3. Social Needs: man is a social being. He is, therefore, interested in social interaction,
companionship, belongingness, etc. it is this socializing and belongingness why individuals
prefer to work in groups and especially older people go to work.
4. Esteem Needs: These needs refer to self-esteem and self-respect. They include such needs
which indicate self-confidence, strength and capability of being useful in the organization
5. Self-Actualization Needs: This level represents the culmination of all the lower,
intermediate, and higher needs of human beings. In other words, the final step under the
need hierarchy model is the need for self-actualization.

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II. HERZBERG’S MOTIVATION-HYGIENE THEORY:
The psychologist Frederick Herzberg extended the work of Maslow and proposed a new
motivation theory popularly known as Herzberg’s Motivation-hygiene (Two-Factor) Theory.

According to Herzberg “There are two types of needs, independent of each other”.
There is a set of job conditions, which operates primarily to build strong motivation and job
satisfaction. These are called ‘Motivational factors’. They are intrinsic in nature and help
increase one’s output. These factors have positive effect on morale, productivity, and job
satisfaction and overall efficiency of the organization.

Certain other factors do not motivate but they are needed in the organization. These are
called as ‘Hygiene or Maintenance factors’. When these factors are present they do not
motivate in a strong way, when absent they dissatisfy, that is why these factors are called
dissatisfiers. These factors are necessary to maintain a reasonable degree of satisfaction of
employees.

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 Hygiene Factors Motivational factors
Company Policy and administration. Achievement
Technical supervision. Advancement
Interpersonal relationship with superiors. Possibility of Growth
Interpersonal relationship with peers. Recognition.
Interpersonal relationship with Work Itself
subordinates. Responsibility
Salary.
Job security.
Personal Life.
Working condition.
Status.

III. McClelland’s THEORY OF NEEDS:

This was developed by David McClelland and his associates to help explain motivation.
The theory focuses on three needs: achievement, power, and affiliation. They are defined as
follows:
 Need for achievement. The drive to excel, to achieve in relation to a set of standards, to
strive to succeed.
Some people have a compelling drive to succeed. They are striving for personal achievement
rather than the rewards of success. They have a desire to do something better or more
efficiently than it has been done before. This drive is the achievement need (nAch).
 Need for power. The need to make others behave in a way that they would not have
behaved otherwise.
The need for power (nPow) is the desire to have impact, to be influential, and to control others.
Individuals high in nPow tend to be more concerned with prestige and gaining influence over
others than with effective performance.

 Need for affiliation. The desire for friendly and close interpersonal relationships.
The third need is affiliation (nAf). This need has received the least attention from researchers.
Individuals with a high affiliation motive strive for friendship, prefer cooperative situations
rather than competitive ones, and desire relationships that involve a high degree of mutual
understanding.

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IV. McGregor’s Theory X and Theory Y
Douglas McGregor introduced Theory X and theory Y which are diagonally opposite to
each other. According to McGregor human beings display very high degree of behaviour relating
to achieving self-actualization. There is interaction of variety of need fulfilment behaviour by an
individual in different situations.

Theory X assumptions:

(a) Work is inherently distasteful to most people.

(b) Most people are not ambitious, have little desire for responsibility and prefer to be directed
(c) Most people have little capacity for creativity in solving organizational problems.
(d) Motivation occurs only at the physiological and security need levels.
(e) Most people must be closely controlled and often coerced to achieve organizational
objectives.

The theory Y assumptions:

(a) Work is as natural as play.

(b) People display extreme degree of self-control, which is necessary for achieving goals.
(c) The capacity of creativity in solving organizational problems is widely distributed in the
population.
(d) Motivation occurs at social, esteem and self-actualization need levels.
(e) People can be self-directed and creative at work.
There would always be a mix of both types of employees. Managers therefore will have
to tailor their motivational application in appropriate manner suiting behavioural patterns.

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 Chapter – 3

COMMUNICATION

The word communication is derived from the Latin word “Communis’ which means common.
Communication involves imparting the common meaning to the other person.

Definitions:

1. According to Hudson “Communication in its simplest form is conveying of information

from one person to the other”.

2. Stephen P. Robbins views that communication refers to transference and understanding

of meaning.

Nature of communication:

1. Communication involves two parties, one who transmits and one who receives the
message.
2. The two parties must have ability to convey and listen to what the sender has to
communicate.
3. Communication includes sending the message and also receiving the response to the
message.
4. The message may be conveyed verbally in writing, by means of signs, gestures or
symbols.
5. Communication is a continuous process.

The need for communication

1. Communication helps managers discharge their functions.

2. It ensures willing co-operation of others
3. Higher efficiency in job performance

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 4. Good communication system communicating quality information contributes positively
to the quality of decisions.
5. Communication flowing information throughout the organization maintains co-
ordination of activities across department in the organization.
6. It helps to mould the attitudes of the persons. It helps in developing labour-
management relationships.

PROCESS OF COMMUNICATION

The process of communication includes seven elements: 1. Communicator, 2. Encoding, 3.

Message, 4. Medium, 5.Decoding, 6. Receiver, 7.Feedback

1. Communicator: The communication process begins with the sender who has an
intended message to communicate. The characteristics of the communicators influence
the communication process.
2. Encoding: It refers to converting a communication message into symbolic form. Encoding
is necessary because information can only be transmitted from communicator to
receiver through symbols and gestures.

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 3. Message: The message is the actual physical product from the source of encoding. When
we speak, the speech is the message, when we write, writing is the message. When we
gesture, the movements of our arms, the expressions on our face ore the message.
4. Medium: Medium is a channel through which a communication message travels.
Medium is the link that connects the communicator and the receiver. Face-to-Face
verbal communication, use of telephone, use of notice, circulars, statements etc.
5. Decoding: translating the sender message by the receivers is called decoding. Decoding
is the process by which the receiver draws meaning from the symbols encoded by the
communicator or sender
6. Receiver: the person who receives the message is called receiver. The communication
process is incomplete without the existence of the receiver of the message.
Communication to be effective needs to be receiver oriented.
7. Feedback: the actual response of the receiver to the message communicated to him is
known as feedback.

CHANNELS OF COMMUNICATION:
The channel of communication can be divided into three types:

I. Based on relationship: Based on relationship, communication may be of two types:

1. Formal, and 2. Informal
1. Formal Communication: the channels of communication established formally by the
management are called ‘Formal communication” the formal channels of communication
are used for the transmission of official messages within or outside organization. It
derives its support from scalar chain of organization.
2. Informal communication: communication, which takes place on the basis of informal or
social relationships among the people in an organization, is known as informal
communication.

II. Based on direction of flow : Based on direction of flow, channels of communication are of
four types:

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 1. Horizontal communication: it is also called lateral communication. It takes place
between the peers. It refers to the transmission of information among positions of the
same level. This facilitates co-ordination among the peers or people working on the
same levels.
2. Upward communication: When communication flows from lower level employees to
higher-level employees it is called upward communication. It encourages employees to
participate in the decision making process and submit valuable ideas and suggestions.
3. Downward communication: It refers to the flow of information from higher level to the
lower level. Such communication may consist of verbal messages, conveying orders,
Policies, Procedures, or written matters conveyed through notices, circulars, handbooks,
etc.
4. Diagonal communication: It refers to flow of messages between persons who are in
positions at different levels of the hierarchy and also in different departments. This type
of communication takes place under special circumstances.

III. Based on Method used:

1. Verbal communication: When the message is conveyed orally, it is called verbal

communication. It produces in communication a personal touch. Verbal communication
is the most economical both in terms of time money.

2. Written communication: Communication that takes place between people in written

form is called written communication. Example: orders, Instructions, reports etc.

3. Gestural communication; When the message transmitted through some gestures, it is

called gestural communication. Example: Moving hands, and eyes to communicate their
ideas and views.

Chapter – 4

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 LEADERSHIP

What is leadership? - Definitions

According to George K. Terry “Leadership is the activity of influencing people to strive

willingly for group objectives”.

Koontz has defined leadership as “the art or process of influencing people so that they
will strive willingly and enthusiastically towards the achievement of group goals”.

Characteristics of leadership:

1. Leadership is a continuous process of influencing others behavior

2. Leadership is basically a personal quality that enables leader to influence the
subordinate’s behavior at work.
3. The success of the leader depends on the acceptance of his leadership by the followers.
4. There is a common goal for leader and follower.

Difference between leadership and Management

Leadership Management
 leaders do the right things  Managers do things right
 Leaders challenge the status quo.  Managers accept the status quo.
 Leaders take a long-term view.  Managers take a short-term view.
 Leaders can use his /her informal  Managers hold formal positions and
influence. enjoy formal authority.
 Leaders create a vision and inspire  Managers achieves result by directing
others.

LEADERSHIP STYLES:

The way the leader influences his/her followers is called “leadership styles”. There are three
basic styles of leadership:

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 1. Autocratic leadership or Authoritative style
2. Democratic or participative style
3. Laissez-Faire or Free Rein style

1. Autocratic or Authoritative style: In autocratic style, the leader centralizes power and
decision-making in himself/herself. The leader commands complete control over the
subordinates who are compelled to obey the orders. The subordinates have no
opportunity to make suggestions or take part in decision-making function.
2. Democratic or Participative Style: In democratic style of leadership, the leaders take
decision in consultation with the subordinates. In other words, the subordinates
participate in decision-making function. Hence, the style is also known as participative
style.

Several benefits offered by the democratic style of leadership are:

a. It gives opportunity to the subordinates to develop their potential abilities and

assume greater responsibilities.
b. It provides job satisfaction, on the one hand, and improves the morale of
subordinates, on the other.
c. Subordinates’ participation in decisions-making helps make right decision because
‘two heads are better than one’

Limitations: Democratic or Participative Style has the following limitations:

a. Decision-making is a time-consuming process in democratic style.

b. There is possibility that a few dominant subordinates may influence decision in
their favor.
c. The responsibility for implementing decision cannot be fixed on an individual
subordinates but the whole group.

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 3. Laissez Faire Style: Laissez faire style is just the opposite of autocratic style. In laissez-faire
style, the manager-leader leaves decision-making to the subordinates. The leader
completely gives up his/her leadership role. The subordinates enjoy full freedom to decide
as and what they like.

Nonetheless, laissez faire style is found suitable in the following situations when:

1. Leader is able to fully delegate the powers of decision-making to his / her

subordinates.
2. Subordinates are also well competent and knowledgeable.
3. Organizational goals and objectives are well communicated to the employees.

WHAT MAKES LEADERSHIP EFFECTIVE?

1. Mental and Physical Health: A healthy mind rests in a healthy body. A leader needs to
have sound health both mental and physical to be able to bear the pulls and
pressures of his role as leader. He must also possess stamina and balanced
temperament.
2. Knowledge and Intelligence: One most important requirement of a leader is to have
required knowledge of human-behavior, psychology and professional competence. In
order to evince his convincing competency, the leader also must update himself
continuously and keep renewing himself.
3. Clear-cut and Worthy Goals: Actions without clear cut directions lead nowhere. That
is why there is very little achievement in spite of a lot of movement in life.
4. Conviction: Swami Vivekananda said “Great convictions are the mothers of great
deeds” It is always man and women with conviction who influence others.
5. Sense of Responsibility: A leader also must be of sense of responsibility for the task
assigned to him. In other words, a leader must discharge his responsibility thrusted
upon him willingly and cheerfully.

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6. Motivation: Effective motivation comes from within not from outside. Strictly
speaking, real motivation cannot be imposed or injected from outsides.
7. Initiative and Drive: You know that electric energy locked up in the power house is of
no use unless it is flown through the cables and manifested itself through the medium
of various gadgets so as to be beneficial.

Chapter – 5

PERSONALITY

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CONCEPT OF PERSONALITY:

There may be so many personalities as many persons. Hence, there is no consensus

what personality is. Personality means different things to different people. To some, it means
one’s charm, Iris and attractiveness; to others it means a unitary mode of response to life
situations.
The English word ‘personality’ has been derived from the Latin word ‘personare’. It
means ‘to peak through’
According to Hilgard et at, “Personality may be understood as the characteristic patterns
of behaviour and modes of thinking that determine a person’s adjustment to the environment”
In the opinion of Ruch, “Personality can be described as how he understands and views
himself and his pattern of inner and outer measurable traits”

DETERMINANTS OF PERSONALITY:
The various determinants of personality are broadly classified into three groups, namely,

1. Heredity
2. Environment and
3. Situation

1. Heredity: Heredity is transmitted through genes, which determine hormone balance,

which later determine physique and subsequently the personality. Heredity refers to
acquiring from parents certain biological, physical and psychological features, which are
further reflected in physical stature, facial attractiveness, sex, temperament etc.
These factors have a deciding influence on how a person in an organization
would display his reactions in a particular situation. In good organizations and
particularly in defence services a detailed screening is carried out of the candidates
based on the background of the parents as it relates to physique, psychological makeup,
disability and transferable disease as it has far reaching impact on the general health of
the organization.

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 2. Environment: Every individual is born and brought up in a particular environment.
Environment leaves an imprint on the personality of an individual. Environment should
be viewed from the point of view of norms, ethics and value that are observed and the
attitude displayed by the social group. These factors actually formulate the culture of
the society from which the organizations draw their human resource requirements. The
cultural background is important to evaluate personality. It is therefore important to
study early conditions under which the child has been brought up, norms followed in
the family and the existence of cultural value system in the society. All these factors
have a marked influence on the personality of an individual.
3. Situation: Individual has to interact with number of problems in a given situation, which
does not remain constant. Situation changes from time to time. There is a need to
recognise the person-situation interaction. Thus personality is situational, the
uniqueness of each situation and any measure of personality must be examined.

Personality traits:
Personality traits are the characteristics of an individual when exhibited in large number
of situations. More predominant the traits in an individual are, more consistence the individual
is and more frequent occurrences in diverse situations. There are thousands of traits that have
been identified. However 16 personality factors have been identified, which are called the
source, or primary traits. These and their opposites are given below

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Types of Personality

Type A: People having Type A personality are always moving, walking and eating rapidly. They
feel impatient with the speed the events take place. They always strive to do two or three thing
at any one time and cannot cope with leisure. They are generally obsessed with work involved
with numbers.
Type B: People possessing Type B personality never suffer from sense of urgency and take thing
as it comes coolly. They do not discuss achievement and leave it to the superiors to identify it.
People having B type of personality play for fun and relaxation rather than to show off. These
people have the tendency to relax without guilt.

Introvert Personalities: Introvert is one of the two basic orientations of people have. Persons
with introvert orientation are primarily oriented to the subjective world. Such people look
inward and experience and process their thoughts and ideas within themselves. They also avoid
social contracts and initiating interaction with other group mates, withdrawn, quiet and enjoy
solitude. People with introvert personality are found more inclined to excel at tasks that require
thought and analytical skill.

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Extrovert Personalities: Simply speaking, extroverts are just contrary to introverts. Extroverts
are friendly, sociable, lively, gregarious aggressive and expressing their feelings and ideas
openly.

Introverts Extroverts
 Like quiet for concentration  Like variety and action.
 Tend to be careful with details, dislike  Tend to work faster, dislike
sweeping statements. complicated procedure.
 Have trouble remembering names and  Are often good at greeting people.
faces.  Often act quickly, sometimes without
 Like to think a lot before they act, thinking.
sometimes without acting.  Like to have people around.
 Work contentedly alone.  Usually communicate freely.
 Have some problems communicating.  Are often impatient with long and
 Tend not to mind working on one slow jobs.
project for a long time
uninterruptedly.

Judging Personalities: People with judging personality types like to follow a plan, make
decisions and need only that what is essential for their work.

Perceptive Personalities: These are the people who adapt well to change, want to know the
entire job and at times may get over committed. After going through the following table you are
able to understand better about the two types of personalities.

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 Judging Type Perceptive Type
 Work best when they can plan work  Adapt well to changing situations.
and follow the plan.  Do not mind leaving things open for
 Like to get things settled. alterations.
 May decide things too quickly.  May have trouble making decisions.
 Want only essential things needed to  Want to know all about their work.
begin their work.  Tend to be curious and welcome new
 Tend to be satisfied once they reach a information on a thing or a situation or
judgment. a person even at later stages.

Chapter – 6

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 PERCEPTION

We all come across various objects or things in our everyday life. We are also constantly
bombarded with various stimuli. Then, what we do in practice is while we receive some objects,
we expect others. Further, we look at the same things yet perceive it differently. For example
looking at a painting, some may perceive it as beautiful, the others as ugly.

Stephen P. Robbins defines perception as “a process by which individuals organize and interpret
their sensory impression in order to give meaning to their environment”

PERCEPTION DIFFERES FROM SENSATION:

People usually mean sensation and perception the same. But, there is a
clear-cut distinction between the two. In simple words, sensation may be described as the
response of a physical sensory organ to some stimuli. Our physical senses i.e., vision, hearing,
touch, smell and taste are continuously bombarded by numerous stimuli that are both inside
and outside of our body. Our physical sensory organs often react to these stimuli. The reaction
of our eye to colour, ear to sound, nose to odor, and so on are the examples of our every day
sensations.
Perception is much more than sensation. As noted before, perception
depends upon the sensory raw data, yet it involves a cognitive process that includes filtering,
modifying or even changing these sensation raw data to make sense out of them.

PERCEPTUAL PROCESS

Inputs Throughput Outputs

Stimuli Selection Organization Action

Interpretation

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Factors Affecting Perception:

IMPROVING PERCEPTION:

1. Perceiving oneself Accurately: In order to perceive others accurately, one first needs to
perceive oneself accurately. Therefore, one needs to improve more awareness about
himself/herself.
2. Improving one’s Self-Concept: When people successfully accomplish what they want, it
develops a sense of self-regard and self-esteem. It is called ‘self-concept’. Research studies
suggest that people having self-concept tend to perceive others more accurately.
3. Being Empathetic: Empathy means to be able to see situation, as other people perceive it.
In a way, it is like putting your feet in another’s shoes. Looking at a problem from others’
point of view enables the person to perceive the other side of the problem
4. Having Positive Attitudes: Positive attitude makes one’s perception positive or more
accurate. Hence, the managers need to try to overcome their personal bias, get rid of any
negative feelings, if any, they have of others. These enhance an individual’s perceptual
skill.
5. Avoiding Perceptual Distortions: As discussed earlier, some factors such as halo effect
stereotyping, attribution, first impression, etc. distort one’s perception about things or
problems.

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 6. Communicating Openly: Experience suggests that sometimes perception gets distorted
due to communication gap or / and inadequate communication. In such case, effective
communication needs to be developed to ensure that true and right message reaches at
the right place and at the right time.

In short, it can be summed up that perception skills can be enhance/improved by:

 Knowing and perceiving oneself accurately.

 Seeing a situation/problem as it is experienced by others, i.e. empathy.
 Having positive attitude towards the problems and situations we are confronted with.
 Improving one’s self-esteem or self-concept.
 Avoiding the common biases in perception.
 Making two-way/effective communication to dispel mis-communication or lack of
communication.
 Making a conscious effort to avoid attribution.

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 Chapter – 7

VALUES, ATTITUDES AND JOB SATISFACTION

Value, attitude and behaviour are interlinked with each other. All these factors decide the
personality of an individual. Value shapes our attitude and behaviour. In an organization,
attitude is more important because it affects the job behaviour.

VALUES

Value represents individual’s standards, faith, ideals or even events and activity. Value is
very important constituent of an individual’s life. It is the broad frame of behaviour. Values are
imbibed by an individual based on inheritance and environment. The values are basic thing that
gives us a sense of right and wrong, good and bad. Values are learned. These change as
individuals grow and mature. Values are stable.

Definitions:

Rokeach defined value as “a specific mode of conduct or end state of existence is

personally or socially preferable to an opposite or converse mode of conduct or end state of
existence”.
Value is important in the study of science of human behaviour. Value will dictate attitude
and human behaviour in the organization.
Types of Values
Allport and associates described six types of values. These are discussed briefly as follows:
(a) Theoretical value: Theoretical value is related to importance and discovery of truth through
rational approach.
(b) Economic value: It emphasises usefulness and practicability of resources, efforts put in by
individuals and the consequent value derived there from.
(c) Aesthetic value: It is form of Harmony. Aesthetic value is displayed by cordial relations
between various levels of organization, effective communication, conflict free atmosphere and
very congenial work environment.

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(d) Social value: Is related to love of people, sense of belonging and an attitude of ‘we’ feeling.
Such value is very important in the organization that brings together the employees which are
bound by a sense of participation that leads to high level of motivation and high productivity.
(e) Political value: It refers to power and influence in the organization. Right people must be
placed at the right positions so that they are able to influence the people.
(f) Religious value: It is related to display of value which would bring unity and understanding
amongst the people in the organization based on common religious platform.

ATTITUDES:

Attitude can be defined as “individual’s feelings about or inclinations towards other

persons, objects, events or activities.” Attitude encompasses such affective feelings as likes and
dislikes and satisfaction and dissatisfaction. Our needs, past experience, self-concept and
personality shape the beliefs, and opinions we hold towards the perceived world.

Definition
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.”

Features:

1. Attitudes are related to the feelings and belief of the people.

2. Attitudes respond to persons, objects or events.
3. Attitudes affect behavior either positively or negatively.
4. Attitudes undergo changes.

Types of attitudes:

Job related attitudes are of three types: Job satisfaction, Job involvement, and organizational
Commitment.

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1. Job satisfaction: It is related to general attitude towards the job. A person having a high
level of satisfaction will generally hold a positive attitude while dissatisfied people will
generally display negative attitude towards life. ‘Attitude’, in organization context generally
indicates job satisfaction because they are inter-related in organizational behaviour.
2. Job involvement: It is the degree to which a person identifies himself (psychologically) with
his job, actively participates and considers his perceived performance level important to
self-worth. High level of involvement indicates that the individual cares for his job. Higher
the job satisfaction, lower will be absenteeism and employee turnover.
3. Organizational commitment: Organizational Commitment is an attitude about employees’
loyalty to their organization. It is a process through which employees identify with the
organization and want to maintain membership in the organization.

FORMATION OF ATTITUDE:

The Formation of attitudes takes place in two ways.

1. Direct Experience
2. Social Learning

Direct Experience: one’s direct experience with an object or person serves as a powerful source
for his/her attitude formation. In other words, attitudes are formed on the basis of one’s past
experience in concerned object or person.
Social Learning: The process of deriving attitudes from family, peer groups, religious,
organizations a culture is called social learning.

Learning attitudes from observation involves the following four processes:

1. Attention: Attention must be focused on model

2. Retention: What was observed from the model must be retained
3. Reproduction: Behavior must be practiced again and again
4. Motivation: the learner must be motivated to learn from the model

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JOB SATISFACTION

The study of Job satisfaction is one of most important factors in the study of human behaviour
in the organization. Job satisfaction focuses on employee attitude towards his job. It has three
important dimensions:
a) Job satisfaction can be measured by the emotional response to a job situation, hence it
cannot be seen, and it can only be inferred.
b) Job satisfaction is related to what you actually get as reward and what you expect to get.
If the difference between the actual reward and expectation is minimum or negligible
then a person will display a positive attitude and if there is wide difference between the
two, a person will display a negative attitude towards his job and therefore the
satisfaction level will be low.
c) Job satisfaction is related to job dimensions. These can be expressed in terms of job
content, remuneration, attitude of co-workers, and opportunity of growth that job is
able to provide in terms of promotion and last but not the least the expert loyal and
experienced leadership is available in terms of supervision.

Factors determining job Satisfaction

There are number of dimensions which effect job satisfaction. Some of the important factors
that determine job satisfaction of the employees in the organization are as under: -

1. Work Content: Content of the work itself is a major source of satisfaction. The content of the
work should be encouraging and interesting and have variety inbuilt in it so that it is not boring.
It should lend itself opportunities to use employee skills, ability and experience. Once such job
is completed successfully, the workers get a great sense of satisfaction.

2. Pay and promotion policy: Salary and wages play important part in the study of job
satisfaction. Pay system and promotion policy of the organization must be just, unambiguous
and in line with the prevalent industry norms and employee expectations. Employee wages and
salary must ensure him the social status and should be able to fulfil the expectations.

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3. Supportive working condition: Working conditions have an impact on employees’ job
satisfaction. The working place should be neat and clean with necessary facilities as per the law.
Light, ventilation, cleanliness, enough space for work, immediate availability of supervision,
adequate latest tools etc. will definitely add to job satisfaction. If the work place were closer to
home, it would add to employee retention.

4. Work group: Work group of multi skilled persons with one goal will be able to function
effectively if they are friendly and co-operative. The work group serves as a source of support,
comfort, advice and assistance to individual worker. A good work group makes the job more
enjoyable. The work group support is essential for job satisfaction.

5. Supervision: Qualified supervisors should be available for advice, guidance and problem
solving. Supervisors should be placed close to the place of work and should be available. Such
supervision improves the morale and job satisfaction of employees.

6. Personality job fit: Individuals should be assigned the job that suits their interest. Job-person
fit helps the organization to achieve the objectives. It helps the person to get the job
satisfaction.

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 Chapter – 8

CONFLICT MANAGEMENT

To study the dynamics of organizational behaviour, study of conflict management

deserves attention. Conflict is good for the organization as it produces new ideas, increases
competitive spirit, cohesiveness in the team and instills an atmosphere of brotherhood in the
organization.

Austin and others define conflict as “a disagreement between two or more individuals
or groups, with each individual or group trying to gain acceptance of its views or objective
over others.”

Sources of conflict:

Structural factors Personal factors

 Specification  Skills and abilities
 Interdependence  Personalities
 Common resources  Perceptions
 Goal differences  Values and ethics
 Authority relationships  Communication Barriers
 Status inconsistencies  Cultural differences

CONFLICT MANAGEMENT:

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 1. Avoiding: One or both parties could avoid facing the conflict. This strategy is useful
when issues involved in conflict are of a very minor nature or when more important
issues deserve attention. Avoidance is a poor strategy hence if someone else is able to
handle the situation of conflict more effectively he should be allowed to do so.

2. Accommodating: In accommodating mode a person scarifies his own interest for satisfy
other person’s interest. This mode is usually adopted when other person’s view is
stronger, you want to achieve goodwill and indicate that you are reasonable.

3. Competing: This strategy may be adopted when other strategies of conflict resolution
are not workable. Competing is also useful in emergencies where quick decisions are
required. This strategy is based on win-lose principle of managing conflicts.

4. Compromising: Compromising is a mode when both parties try to find out mutually
acceptable solution that sacrifices both the parties partially. In compromising, there is no
clear winner or loser. None of the party is fully satisfied.

5. Collaborating: This involves attempt of one party to work with the other party in
cooperative manner and find solutions to the problem for mutual benefits. This strategy
signifies when two sets of solutions are important for both parties to be compromised.
The strategy attempts a win-win situation to reach the goals.

Advantages of functional conflict:

1. Expressed conflict can improve communication that promotes growth.

2. Minimum level of conflict serves as pre-requisite for organizational development.
3. Conflict and its resolution improve relations of group members .This leads to higher
productivity.
4. Minimum level of conflict promotes stimulus for analytical thinking, which may
challenge views, policies and systems prevailing in the organization
5. Conflict can serve as power equalizer between two parties.

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POWER

Power, in the organizational context is derived from the official position held by an
individual in an organization. Leaders use power as a means of attaining group goals. Leader
uses power to ensure compliance of job assigned to them. Power is also used to control various
activities of individuals and groups. When we discuss power, authority is associated with it.
Authority is acquired from the organizational hierarchy.

Bases or sources of power:

1. Reward power: Reward power source derives from the person’s control over resources.
Example: Salary, bonuses, rewards
2. Coercive power: The power to punish or reward the power to threaten and to use one’s
position to force others to take action. Coercive power is based on the ability to cause
unpleasant experience of the people. Example: Threats and Punishment.
3. Legitimate Power: The power which is exercised in accordance with organizational rules.
This power is exercised with the authority of organization.
4. Referent power: This depends on charisma or personal attraction of the individual.
Interpersonal skill and emotional support from others are the sources of power for a
person.
5. Expert power: Power which is derived from knowledge. This power is based on
acknowledgement of others expertise.
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Reference: Contemporary Reading in Organizational Behaviour, Fred Luthans.

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