BPAE-142

ORGANISATIONAL
BEHAVIOUR

School of Social Sciences

Indira Gandhi National Open University
1
 Expert Committee
Prof. C.V. Raghavulu Prof. Ravinder Kaur
Former Vice-Chancellor Department of Public Prof. Rajvir Sharma
of Nagarjuna University, Administration Maharaja Agrasen
Guntur (A.P.) Osmania University, Institute of Management
Hyderabad Studies, Delhi
Prof. Ramesh K. Arora
Former Professor of Prof. C.Venkataiah Prof. Sanjeev Kumar
Public Administration Dr.B.R. Ambedkar Open Mahajan
Rajasthan University, University, Hyderabad Department of Public
Jaipur Administration, Himachal
Prof. G. Palanithurai Pradesh University,
Prof. O.P. Minocha Department of Political Shimla
Former Professor of Science and Development
Public Administration Administration, Prof. Manoj Dixit
Indian Institute of Public Ghandhigram Rural Department of Public
Administration, New University, Ghandhigram Administration, Lucknow
Delhi University, Lucknow
Prof. Ramanjit Kaur Johal
Prof. Arvind K. Sharma University School of Prof. Sudha Mohan
Former Professor of Open Learning Panjab Department of Civics and
Public Administration University, Chandigarh Politics, University of
Indian Institute of Public Mumbai, Mumabi
Administration, New Prof. Rajbans Singh Gill
Delhi Department of Public IGNOU Faculty
Administration, Punjabi Prof. Pardeep Sahni
Prof. R.K. Sapru University, Patiala Prof. E. Vayunandan
Former Professor Public Prof. Uma Medury
Administration Prof. Manjusha Sharma Prof. Alka Dhameja
Panjab University, Department of Public Prof. Dolly Mathew
Chandigarh Administration Prof. Durgesh Nandini
Kurukshetra University,
Prof. Sahib Singh Kurukshetra Consultants
Bhayana Dr. Sandhya Chopra
Former Professor Public Prof. Lalneihzovi Dr. A. Senthamizh Kanal
Administration Department of Public
Panjab University, Administration Conveners
Chandigarh Mizoram Central Prof. Dolly Mathew
University Prof. Durgesh Nandini
Prof. B.B.Goel,
Former Professor of Prof. Neelima Deshmukh
Public Administration Former Professor of
Panjab University, Public Administration,
Chandigarh Rashtrasant Tukadoji
Maharaj Nagpur
University
Course Coordinator: Prof. Pardeep Sahni, School of Social Sciences, IGNOU, New
Delhi.
Course Editor (Content): Prof. Ramesh K. Arora, Professor of Public Administration
(Retired), University of Rajasthan, Jaipur.
Course Editor (Format and Language): Prof. Pardeep Sahni, Dr. A. Senthamizh
Kanal, Dr.Sandhya Chopra, School of Social Sciences, IGNOU, New Delhi.
2
COURSE PREPARATION TEAM
BPAE-142 Organisational Behaviour Unit Writer
Block 1 Introduction to Indigenous People
Unit 1 Organisational Behaviour:
Meaning, Features,
Significance and Models Dr. Lishin Moothery Joshy, Associate
Professor, SCMS Cochin School of
Unit 2 Foundations of Individual Business, Cochin.
Behaviour: Determinants,
Models and Perceptions
Block 2 Understanding Individual Behaviour
Unit 3 Employee Attitudes and Job Prof. G. Bhuvaneswara Lakshmi,
Satisfaction Head of the Department, Department
Unit 4 Learning: Nature and of Education and Education
Theories Technology, School of Social
Sciences, University of Hyderabad,
Hyderabad.
Block 3 Organisational Behaviour: Major Facets
Unit 5 Motivation: Concept and Dr. Lishin Moothery Joshy,
Theories Associate Professor, SCMS Cochin
School of Business, Cochin.
Unit 6 Nature of Group Dynamics
Unit 7 Team Work: Nature,
Effectiveness, Impediments Dr. Ch.C.Prasad,
Unit 8 Communication: Meaning, Assistant Director, Dr. B.R.Ambedkar
Nature and Process Open University, Hyderabad.
Unit 9 Leadership: Concept and
Theories
Block 4 Life in Organisations and Organisational System
Unit 10 Organisational Conflict: Dr. Ch.C.Prasad,
Meaning, Process and Types Assistant Director, Dr. B.R.Ambedkar
Open University, Hyderabad.
Unit 11 Negotiation: Concept,
Process, and Approaches Dr. Lishin Moothery Joshy,
Associate Professor, SCMS Cochin
Unit 12 Change: Process and School of Business, Cochin.
Management
Unit 13 Organisational Culture:
Meaning, Types and Nature Dr. Ch.C.Prasad,
Unit 14 Organisational Change and Assistant Director, Dr. B.R.Ambedkar
Development: Concept and Open University, Hyderabad.
Techniques
Unit 15 Stress Management: Dr. R.K.Sapru,
Nature, Consequences and Professor of Public Administration
Management (Retired), Panjab University,
Chandigarh.
Unit 16 Models: Challenges and Dr. Lishin Moothery Joshy,
Opportunities Associate Professor, SCMS Cochin
School of Business, Cochin.

3
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February, 2022
© Indira Gandhi National Open University, 2022
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4
 Course Contents
Pages
Course Introduction 7
Block 1 Concept and Relevance of Organisational Behaviour
Unit 1 Organisational Behaviour: Meaning, Features, Significance and Models 13
Unit 2 Foundations of Individual Behaviour: Determinants, Models and 23
Perceptions
Block 2 Understanding Individual Behaviour
Unit 3 Employee Attitudes and Job Satisfaction 37
Unit 4 Learning: Nature and Theories 50
Block 3 Organisational Behaviour: Major Facets
Unit 5 Motivation: Concept and Theories 63
Unit 6 Nature of Group Dynamics 74
Unit 7 Team Work: Nature, Effectiveness, Impediments 85
Unit 8 Communication: Meaning, Nature and Process 96
Unit 9 Leadership: Concept and Theories 107
Block 4 Life in Organisations and Organisational System
Unit 10 Organisational Conflict: Meaning, Process and Types 119
Unit 11 Negotiation: Concept, Process and Approaches 130
Unit 12 Change: Process and Management 142
Unit 13 Organisational Culture: Meaning, Types and Nature 152
Unit 14 Organisational Change and Development: Concept and Techniques 165
Unit 15 Stress Management: Nature, Consequences and Management 177
Unit 16 Models: Challenges and Opportunities 187
Suggested Reading

5
6
COURSE INTRODUCTION
There is no better way to highlight the importance of Organisational Behaviour
than to quote Peter Drucker who said “The Organisation is, above all, social.
It is people”. Organisational Behaviour is about the behaviour of individuals
in an organisational setting. It goes into great depths to analyse the behaviour,
both as an individual and when part of a group. If we go by the definition
of an Organisation as ‘a group of two or more people who work together to
achieve the agreed objectives’, we can see why human behaviour will play a
central role in the success of an organisation. In fact, it is a bit surprising that
the Business Schools focused only on the quantitative and technical aspects of
Management until the 1980s, ignoring the people-aspect. However, starting from
the eighties, the people-dimension came to the forefront in Business Schools’
curricula. The basic idea behind setting up an organisation is that a group of
individuals can achieve what one individual cannot achieve alone. However,
when many individuals, possessing varied skills and expertise, but also from
diverse backgrounds and cultures, come together under the umbrella of an
organisation to achieve common objectives, they expect each other to behave/
perform in a certain way that will be the most optimum way for achieving the
prescribed goals, both of the organisation and that of the individuals. It is quite
natural that some levels for friction can get generated because of the diversity
among the workforce and more importantly the conflicts of interests among
the different stakeholders of the business. Organisational Behaviour discipline
aims to address all such issues for the benefit of one and all who are connected
with the organisation.
The course on Organisational Behaviour is divided into four blocks, ‘Concept
and Relevance of Organisational Behaviour’, ‘Understanding Individual
Behaviour’, ‘Organisational Behaviour: Major Facets’ and ‘Life in Organisations
and Organisational System’, consisting of a total of 16 units covering important
aspects of Organisational Behaviour.
Block 1 Concept and Relevance of Organisational Behaviour
Unit 1 Organisational Behaviour: Meaning, Features, Significance and
Models
Unit 1 provides the foundation for the course and covers the meaning,
features, significance and models of Organisational Behaviour.The three
main theoretical frameworks in the discipline of Organisational Behaviour,
‘Behavioural Framework’, ‘Cognitive Framework’ and ‘Social Cognitive
Framework’ are discussed in detail in this Unit. It also deals with the relationship
between Bureaucracy and Organisational Behaviour. The different models
of Organisational Behaviour, the ‘Autocratic Model’, the ‘Custodial Model’,
the ‘Supportive Model’, the ‘Collegial Model’ and the ‘Systems Model’, the
challenges and opportunities of which are explored in detail in the last Unit, are
introduced in Unit 1.
Unit 2 Foundations of Individual Behaviour: Determinants, Models and
Perceptions
The focus of Unit 2 is on individual behaviour. It has attempted to bring forth
the factors that affect individual behaviour. The determinants of personality 7
 that can be broadly bifurcated into ‘nature’ and ‘nurture’ classes have been
elaborated in this Unit. Myers-Briggs Type Indicator (MBTI) instrument,
which was developed by Isabel Briggs Myers and her mother, Katharine Cook
Briggs to help people understand and appreciate differences in each other’s
personalities, is explored in detail as the said instrument has the potential to
increase productivity of teams comprised of diverse people. The Unit introduces
the concept of ‘Perception’ and elaborates the factors that affect perception.
Block 2 Understanding Individual Behaviour
Unit 3 Employee Attitudes and Job Satisfaction
Unit 3 examines the concept and theories of Job Satisfaction, and establishes its
connection with Organisational Behaviour. It also focuses on the types (Positive,
Negative, Neutral and Sikken) and components of ‘Attitudes’ which can be
defined as the way of thinking, feeling, or behaving that reflects the state of
mind or disposition of the individual. The different types of attitudes displayed
by employees and the ways of changing them for the better are explored. The
characteristics of ‘committed’ people are also listed.
Unit 4 Learning: Nature and Theories
Unit 4 is about the nature and theories of ‘Learning’. After covering the meaning
and definitions of ‘Learning’, it ventures into the principles of learning before
dealing with the factors (personal and social) influencing learning.Different
theories related to the concept of learning like Classical Conditioning Theory,
S-R theory (Operant Conditioning), Cognitive Learning Theory and Social
Learning Theory are discussed in this Unit.
Block 3 Organisational Behaviour: Major Facets
Unit 5 Motivation: Concept and Theories
Unit 5 is about the concept and theories of ‘Motivation’. It brings out the
differences between Intrinsic and Extrinsic motivation, and discusses how the
concepts of Motivation can be applied at the workplace. Hierarchy of Needs
theory propounded by the famous psychologist Abraham Maslow, ERG theory
(Existence needs, Relatedness needs and Growth needs) postulated by Clayton
Paul Alderfer, the Two-factor theory proposed by the famous psychologist
Frederick Herzberg, and Theory X - Theory Y of Douglas McGregor are
elaborated in detail in this Unit. ‘Selfless Action’ (Nishkama Karma), as
advocated in Bhagawad Gita and its relevance in a modern organisation are
also touched upon. The inducements that are generally provided to employees
to increase their motivation levels are also discussed.
Unit 6 Nature of Group Dynamics
Nature of ‘Group Dynamics’ is dealt with in Unit 6. It starts with the principles
behind group dynamics and continues with factors affecting group behaviour.
Subsequently, the types of groups and theories behind group formation are
discussed in detail.The famous five stage model proposed by Bruce Tuckman
which consists of Forming, Storming, Norming, Performing and Adjourning
are elaborated in this Unit.
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Unit 7 Team Work: Nature, Effectiveness, Impediments
Unit 7 deals with the nature and effectiveness of, and impediments to, ‘Team
Work’. The difference between a ‘group’ and a ‘team’ is explained and the
importance and benefits of teamwork are discussed. The characteristics of high-
performance teams are discussed in detail. The Unit concludes by elaborating
the impediments to team work, and ways to overcome them.
Unit 8 Communication: Meaning, Nature and Process
Unit 8 is about the meaning, nature and process of communication. Different
types of communication like Formal communication (consisting of Downward
communication, Upward communication and Lateral communication), Informal
communication, Grapevine communication and Rumours are discussed in great
detail. Barriers to communication and ways to facilitate effective communication
in an organisation are explored.
Unit 9 Leadership: Concept and Theories
Unit 9 is about the concept of ‘Leadership’ and the theories pertaining to the
same. Different styles of leadership style like ‘Autocratic’, ‘Participative’
and ‘Laissez-faire’ and theories like ‘Trait theory’, ‘Path Goal theory’,
‘Group and Exchange Theory’, ‘Contingency Theory’, ‘Charismatic Theory’,
‘Transformational Theory’, ‘Social Learning Theory’ etc are explained. Skills
like Cultural Flexibility, Communication Skills, HRD Skills, Creativity etc.,
that are expected to be possessed by a good leader are enumerated in this Unit.
Block 4 Life in Organisations and Organisational System
Unit 10 Organisational Conflict: Meaning, Process and Types
The meaning, process and approaches of Organisational Conflict are discussed
in Unit 10. It looks at the main reasons behind conflicts and the processes though
which conflict manifests itself. Conflicts can be divided into sub-classes along
several dimensions. These classes of conflict are discussed in detail in this Unit.
The final section of the Unit is devoted to Conflict Management.
Unit 11 Negotiation: Concept, Process and Approaches
Unit 11 explores the concept, process and approaches of ‘Negotiation’. After
bringing out the differences among Negotiation, Mediation and Arbitration, it
explains the concept of BATNA (Best Alternative to Negotiated Agreement)
and ZOPA (Zone of Possible Agreement). Negotiation is conceptualised in this
Unit as a five-step process, each of which is elaborated in detail. The processes
are 1) preparation and planning (2) definition of ground rules (3) clarification
and justification (4) bargaining and problem solving, and (5) closure and
implementation. The Unit concludes with the discussion on some common
tactics employed by negotiators and ways to counter them.
Unit 12 Change: Process and Management
Unit 12 on process and management of ‘Change’ starts by defining what Change
is, and explains the factors stimulating change. It goes on to explain why and
how people oppose change, and the proven methods of managing change. The
‘Lewin’s three step model to manage change’ and ‘Kotter’s eight step plan for 9
implementing change’ are discussed in detail in the last sections of the Unit.
 Unit 13 Organisational Culture: Meaning, Types and Nature
Unit 13 deals with the meaning, types and nature of ‘Organisational Culture’.
After discussing the characteristics (like observed regularities, norms, dominant
values, philosophy, rules etc.) of Organisational Culture, it moves on to the
types of Organisational Culture like Dominant and subcultures, Strong and
weak organisational cultures, Adaptive and unadaptive cultures, Functional and
dysfunctional cultures, Rational cultures, Developmental cultures, Consensual
Cultures and Hierarchical cultures. It further explains the process through
which Organisational Culture is formed and maintained. The Unit concludes by
explaining what a ‘Learning Organisation’ is.
Unit 14 Organisational Change and Development: Concept and
Techniques
Unit 14 on the concepts and techniques of ‘Organisational Change and
Development’ starts with a discussion on the forces behind organisational
change. The changes may be pertaining to innovations by subordinates, those
that the manager initiates, those that are imposed by the top management or
the changes induced by the environment. After discussing the major types of
organisational change, it looks at the human responses to change. The concept,
objectives and techniques of Organisational Development are discussed in
detail.
Unit 15 Stress Management: Nature, Consequences and Management
The nature, consequences and management of ‘Stress’ are explored in Unit 15.
After defining what stress is, it goes on to explain its nature and sources. The
source may be an environmental factor, organisational factor, personal factor
or a combination of these. The physiological, psychological and behavioural
consequences of stress are discussed subsequently, before moving on to the
methods of managing stress using different approaches that can be broadly
classified under Individual approaches and Organisational approaches.
Unit 16 Models: Challenges and Opportunities
Unit 16, the last Unit, is about the opportunities and challenges pertaining to
different ‘Organisational models’. It starts by explaining different models like
S - R Model (Stimulus - Response Model), R - S Model (Response - Stimulus
Model), ABC Model (Antecedents, Behaviours and Consequences), S - O -
R Model (Stimulus-Organism-Response), S - O - B - C Model (Stimulus –
Organism – Behaviour – Consequences) and Systems Model. The Unit goes on
to explain the opportunities and challenges pertaining to Autocratic, Custodial,
Supportive and Collegial Models.

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 Block 1
Concept and Relevance of
Organisational Behaviour

11
12
UNIT 1 ORGANISATIONAL BEHAVIOUR: Organisational
Behaviour: Meaning,
MEANING, FEATURES, Features, Significance
and Models
SIGNIFICANCE AND MODELS*
Structure
1.0 Objectives
1.1 Introduction
1.2 Meaning of Organisational Behaviour
1.3 Features of Organisational Behaviour
1.4 Significance of Organisational Behaviour
1.5 Organisational Behaviour and Bureaucracy
1.6 Theoretical framework of Organisational Behaviour
1.7 Organisation Behaviour Models
1.8 Conclusion
1.9 Glossary
1.10 References
1.11 Answers to Check Your Progress Exercises

1.0 OBJECTIVES
After reading this Unit, you should be able to:
• Understand the meaning of Organisational Behaviour (OB);
• Discuss the key features of OB;
• Examine the significance of OB;
• Explain the relationship between bureaucracy and OB;
• Educate the theoretical framework of OB; and
• Describe the major approaches and models of OB.

1.1 INTRODUCTION
Organisations are not mere brick and mortar; they consist of people. As per
Peter Drucker (1999), “The Organisation is, above all, social. It is people”.
OB is the study of the ways in which people interact in an organisational
setting. It is believed that the behaviour of people in organisational contexts is
different from that exhibited by them in their personal lives. Until the 1980s,
the business schools stressed only on the importance of quantitative and other
technical aspects of management, but during the eighties and early nineties the
environment in which organisations work changed dramatically, as a result of
which the study of human behaviour came to the forefront. The ultimate aim
13
*
Contributed by Dr. Lishin Moothery Joshy, Associate Professor, SCMS Cochin School of Business, Cochin.
Concept and of developing Organisational Behaviour as a discipline may be to improve
Relevance of the efficiency and efficacy of organisations, but individual employees also
Organisational
Behaviour
benefit from the scientific approaches embedded in the conceptual constructs of
Organisational Behaviour theories as they seek to maximise the outputs from
individuals by strategic interventions. So what is an organisation?
An organisation is a group of two or more people who work together to achieve
the agreed upon objectives. We come into touch with several organisations
during our life time. Organisations are as diverse as a hospital, a university
and a company like Infosys etc. Organisations are defined by Richard L. Daft
(2012) in his book “Organisation Theory and Design” as “i) Social entities that;
are goal-oriented ii) are designed as deliberately structured and coordinated
activity systems and iii) are linked to the external environment”. The key element
of an organisation is not the building that houses it or the policies that guide
it; the key element is the people and their relationships with one another. An
organisation is said to exist when people interact with one another to perform
essential functions to achieve organisation’s objectives or common goals. We
study this in detail under the concept called Organisational Behaviour.

1.2 MEANING OF ORGANISATIONAL

BEHAVIOUR
According to John W. Newstrom and Keith Davis (2015), “Organisational
Behaviour is the study and application of knowledge about how people act
within an organisation. It is a human tool for human benefit. It applies broadly to
the behaviour of people in all types of organisation”. Stephens P. Robbins and
Judge (2019) has stated that “Organisational Behaviour is a field of study that
investigates the impact that individuals, groups and structure have on behaviour
within the organisations for the purpose of applying such knowledge toward
improving organisation’s effectiveness”.
According to Fred Luthans (2011), “Organisational Behaviour is directly
concerned with the understanding, production and control of human behaviour
in organisations,” while Robert E. Callahan, C. Patrick Fleenor and Harry
R. Knudson (1985) have defined OB as “a subset of management activities
concerned with understanding, predicting and influencing individual behaviour
in organisational settings”.
If we try to deduce the meaning of OB from the above definitions, it will be
clear that unlike the terms ‘human behaviour’, ‘animal behaviour’, ‘consumer
behaviour’, ‘class room behaviour’ etc., the term ‘Organisational Behaviour’,
when used in the context of Management Studies does not mean the behaviour
itself, but the study about a certain type of behaviour: behaviour of individuals
and groups within an organisational setting.

1.3 FEATURES OF ORGANISATIONAL

BEHAVIOUR
Organisational Behaviour has the following salient characteristics:
1. OB is not a stand-alone discipline, but is an integral part of the larger
14 ‘Management discipline’, although by virtue of its importance and
 effectiveness, it has come to be regarded as a distinct field of study. Organisational
Behaviour: Meaning,
2. OB studies are not mere academic exercises. They have specific goals Features, Significance
to achieve. Broadly, these goals are directly or indirectly related to and Models
improvements in productivity.
3. OB is multi-disciplinary, in the sense that it is affected and influenced
by developments in other fields of study like Economics, Management,
Sociology, Anthropology, Psychology, Industrial Psychology, etc.
4. Other behavioural sciences are concerned with all types of behaviours
of humans, animals etc., but OB deals with the behaviour of humans
alone and that too within the extremely narrow context of life within an
organisation.
5. OB studies behaviour at three distinct levels: individual level, group level
and the level of the organisation itself.

1.4 SIGNIFICANCE OF ORGANISATIONAL

BEHAVIOUR
A group of individuals can achieve what one individual cannot achieve alone.
This is the basic idea behind setting up an organisation. Many individuals,
possessing varied skills and expertise, come together under the umbrella of an
organisation to achieve common objectives. Such individuals expect each other
to behave/perform in a certain way that will be most appropriate for achieving
the prescribed goals.
Adam Smith (1776) has observed in his classic work, An Enquiry into the
Nature and Causes of the Wealth of Nations that “the greatest improvement
in the productive powers of labour and the greater part of skill, dexterity and
judgement with which it is anywhere directed, or applied, seem to have been
the effects of the division of labour.” Organisations implement the ‘division
of labour’ concept in a very effective manner. Because of the implementation
of division of labour, different individuals within an organisation will be
possessing different skills, and they will be placed at different hierarchical
levels. This heterogeneity leads to a complex web of interactions between the
diverse groups of people. OB discipline provides us with the tools to navigate
this difficult landscape.
OB theories help in addressing the following challenges faced by today’s
organisations:
Workforce diversity: Workforce diversity implies that the workforce is
comprised of employees belonging to different race, gender, religion, caste,
etc. Workforce diversity helps to bring new perspectives to the workplace.
However, it brings many challenges as well along with it. A manager who is an
expert in OB will be better equipped to face the diversity-related challenges.
Globalisation: Globalisation is a challenge as well as an opportunity for most
organisations. Those organisations which address its challenges well will be
able to tap into the opportunities in a better way. OB theories acquire great
significance in the context of ‘International Human Resource Management’.
15
Concept and Customer-Orientation: Mahatma Gandhi had forcefully said, “Customer
Relevance of is king.” However, it does not mean that an organisation can sacrifice its
Organisational
Behaviour
employees at the altar of customer service. Only the satisfied employees can
make a customer satisfied. On the other hand, a disgruntled employee will pass
on his or her irritation to the customer in a manner that can put the organisation
in a disadvantageous position. But most organisations have limitations as far
as making employees satisfied is concerned. The tangible resources at the
disposal of an organisation are limited and might prove inadequate to meet all
the demands of its employees. Therein lies the importance of OB theories, as
the learnings from them can equip the management to strike a perfect balance in
this context. It is worth noting that Nayar (2010) openly proclaims in his book
that he puts employees first and customers second.
Innovation and Disruption: Innovations and disruptions are the order of the
day and are not rare phenomena anymore. Innovation is the use of a new idea
or method or process or technology that creates value for customers and profits
for organisations. According to Caroline Howard of Forbes, disruption is
destructive and creative at the same time, since it displaces an existing market,
industry or technology, and replaces it with something better. From an HR
practitioner’s viewpoint, employees can be the driving force behind innovation
and disruption, or they can be its greatest enemy. Organisations have to use all
weapons in its OB arsenal to urge the employees to innovate, or to at least not to
resist when changes are brought about by innovations and disruptions initiated
by others.
Work Environment: The work environment does not denote merely the
physical work environment but the psychological space as well. A conducive
work environment is where employees have healthy relationships with their
superiors and colleagues; receive deserved recognition for their efforts and are
able to grow as individuals. A perfect work-life balance is also a necessity if an
employee is to operate at the optimum level. OB theories and models can go
a long way in helping organisations establish the perfect work environment in
which an employee will perform to his highest possible level.
Check Your Progress 1
Note: i) Use the space given below for your answers.
ii) Check your answers with those given at the end of the Unit.
1. Define ‘Organisation’ and explain the meaning of OB.
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
2. Discuss the concept of OB.
......………………….……………………………………………………..
......………………….……………………………………………………..
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 ......………………….…………………………………………………….. Organisational
Behaviour: Meaning,
......………………….…………………………………………………….. Features, Significance
and Models
1.5 ORGANISATIONAL BEHAVIOUR AND
BUREAUCRACY
Introduction of the bureaucratic system in organisations during the Industrial
Revolution was a big change as far as individuals working in an organisation
were concerned. A bureaucratic organisation had a rigid hierarchy and was
organised into different functional units manned by technically qualified and
skilled people. An organisation became ‘impersonal’ in the sense that its
administration became rule-based, that is, same rules got applied to everyone.
In the pre-bureaucratic era, individuals used to get promoted on the basis of
their relationships with owners/superiors, but in a bureaucracy, there were
clearly defined rules and procedures for promotions.
According to German sociologist, Max Weber (1978), although bureaucracy
limits the freedom of individuals, it is the most efficient way of organising
human activity. He used the term ‘iron cage’ to describe the situation in which
individuals gets trapped in a system, the only aim of which is efficiency,
and individuals have no freedom to choose what they do. Weber went on to
mention that the `bureaucratisation’ of society will lead to a ‘polar night of icy
darkness’.
Before organised industrial activity came into existence, each individual was
his own master. A cobbler had the freedom to decide when to work, where to
work and how to work. But in a bureaucratic organisational setting, he sells his
labour to someone else and thus loses his autonomy. According to Weber, an
individual becomes a cog in the bureaucratic machine and his only aim will be
to become a bigger cog within the bureaucracy. It is easy to see the significance
of OB in such a system, when compared to unorganised activities or to less
developed forms of organised activities.
Philip Selznick (1948), an eminent sociologist, has stated in his seminal work,
Foundation of the Theory of Organisation that “formal structures never succeed
in conquering the non-rational dimensions of organisational behaviour”. From
an economic viewpoint, organisation is a system, which uses scarce resources
in the most efficient and effective manner. This ‘technical problem’ is addressed
using formal management techniques like delegation and control. This is the
formal part. However, leadership is all about winning of consent and support of
individuals. The effectiveness of the organisation depends to a large extent on the
degree of effectiveness of persuasion and inducement from the management’s
side. Selznick has added that “control and consent cannot be divorced even
within formally authoritarian structures”. This implies that without consent of
the individuals, control cannot be imposed effectively. Thus, it is essential to
view the organisation as a social structure.
In the formal system, individuals are viewed in relation to their ‘roles’ within
the system. However, employees have a natural tendency to oppose this
kind of ‘depersonalisation’, since employees are not merely ‘roles’, they are
‘whole’ individuals. This ‘whole’ individual can create problems for the formal
17
Concept and organisation because of the needs of his personality, because of his habits and
Relevance of because of conflicts of interest by way of commitment to entities external to
Organisational
Behaviour
the organisation. Delegation is a formal assignment made to ‘roles’ or official
positions. It is not an assignment to an individual as such. However, ultimately
the ‘whole’ individual is the one who is donning the ‘role’. His personal interests
may not be in full alignment with the goals of the organisation. In fact, such non-
alignment seems to be the rule, rather than the exception. Selznick gives a simple
example where one of the tasks delegated to a subordinate is training his own
replacement. It is not in his interest to properly train his replacement as doing
so will make him less indispensable to the organisation. Thus, it is evident that
the formal system alone cannot ensure the achievement of organisational goals.
In fact, Lyndal Urwick, an expert in Public Administration and Management,
has gone to the extent of suggesting that formal channels function only to
confirm and record decisions arrived at through more personal means. These
individual-centric aspects make Organisational Behaviour very significant in
an organisational setting.

1.6 THEORETICAL FRAMEWORK OF

ORGANISATIONAL BEHAVIOUR
There are three main theoretical frameworks in the discipline of Organisational
Behaviour: Behavioural Framework, Cognitive Framework and Social Cognitive
Framework.
Behavioural Framework: This framework focuses on the ‘Stimulus-Response’
pair. A specific stimulus gets associated with a particular kind of response in the
minds of individuals. The fact that is pertinent to Organisational Behaviour is
that the responses can be conditioned/taught. Ivan Pavlov, a Soviet researcher,
is an exponent of ‘Classical conditioning’, In his famous experiment with a
dog, he showed that the dog salivated when it was presented with meat powder.
This is an unconditional response to an unconditional stimulus. The dog did
not salivate when he rang a bell. Pavlov then started ringing the bell whenever
he gave meat powder to the dog. After many repetitions, it was found that
the dog salivated when the bell rang, even if meat powder was not presented.
This is a conditioned response and this type of conditioning is called ‘classical
conditioning’. Many critics believe that classical conditioning is limited in its
applicability to involuntary responses like salivation, increase in heart beat rate
etc., and is hence not very useful in OB.
In ‘operant conditioning’ developed by B.F.Skinner (1950), the response to a
stimulus is based on the consequences of that response (in the past). Consequences
can be of many types: something positive can be given (for example, a salary
increment), something positive can be taken away (discontinuance of perks),
something negative can be introduced (a punishment) or something negative
can be discontinued (revoke a suspension). OB theories suggest that by careful
use of these consequences (reinforcements and punishments); management can
elicit desired behaviour from employees.
Cognitive Framework: In this framework, cognition precedes behaviour. It is
based on the idea that an individual knows and expects that a specific action
will lead to a specific consequence. He is conscious about it. He is thinking
18
about the goal and the kind of behaviour that can lead to the achievement of that Organisational
goal. ‘Motivation’ is one of the concepts of OB in which cognitive framework Behaviour: Meaning,
Features, Significance
is applied. and Models
Social Cognitive Framework: This framework adds to the cognitive and
behavioural aspects and introduces environment as an important determinant in
this framework. In our day to day life, many of our responses are the outcomes
of observation and imitation. It is especially so for children. Children observe
others very closely and often try to mimic what they see. If they see someone
being rewarded/punished for a particular type of behaviour, they are likely to
imitate the behaviour. This is true of employees in an organisation as well, and
hence this framework is an essential component of the discipline of OB.

1.7 ORGANISATIONAL BEHAVIOUR MODELS

Autocratic Model
In this model, it is believed that those who are part of the management have the
expertise, knowledge and skills required to run the business and the day to day
activities. It is also assumed that that those at the floor level lack skills to do the
work on their own. Hence, it is presumed that they need to be micro-managed
by those in power. They do not usually have any say in the functioning of
the organisation. Even their opinions and suggestions are not sought by the
management, since it is believed that they are not capable of making any
worthwhile suggestion. The owners exercise absolute command over their
employees, and likewise, the employees obey their seniors. Autocratic model
is one of the oldest models of OB and was successful to a great extent during
the period of Industrial Revolution. However, it is not without its drawbacks.
Employees are unlikely to experience job satisfaction, as they lack involvement
in the business process. They do not have any control on what they do at the
workplace. Such an arrangement is not suitable for a modern day organisation in
which many job roles are donned by specialists who have considerable expertise
in the field. In certain present day industries, it will not be an exaggeration
to say that those at the top, although will be having an idea about the bigger
picture, won’t have the requisite skills to direct the activities of the lower level
employees.
Custodial Model
This model came into existence as a result of the limitations of the Autocratic
model. In the autocratic model, the employees are afraid of the management
and hence they do not rebel or oppose their commands. However, they might
harbor feelings of antipathy within themselves if they are not treated fairly, and
might vent out their hatred at some future point in time. To address this issue,
the custodial model of OB was introduced. As per this model, the welfare of the
employees is looked after by the management, by offering economic security
to them. Other welfare measures like crèche for the kids of the employees,
medical benefits etc., are also introduced as part of the Custodial model. The
employee becomes dependent on these welfare measures and irrespective of
whether they are satisfied with the job per se or not, they think twice before
quitting the organisation.
19
Concept and Supportive Model
Relevance of
Organisational In the Autocratic model, power and authority are the main aspects that keep the
Behaviour model running. In the case of Custodial model, however, it is the incentives that
are the driving force. In contrast, neither power nor incentives are key elements
in a supportive model. Harmonious relationship between the management
and the employees motivate employees working in an organisation in which
supportive model is employed. The leadership style in the supportive model is
such that the employees are allowed to grow and flourish.
Collegial Model
In the Collegial model everybody works as colleagues. Thus, team-work
is the key factor in this model. Everybody participates in the growth of the
organisation. The manager acts like a coach to develop team spirit among the
employees. The coach is less concerned about his own performance, but more
about the performance of the team. This model is effective in industries that by
their very nature have to innovate. The team work as envisaged in the model
produces new ideas and path-breaking discoveries.
Systems Model
This is the most recent of the five models. In the Systems model, an organisation
acknowledges that individuals have different goals, talents and potential.
The aim of the Systems model is to strike a balance between the goals of the
employees with the goals of the organisation. Individuals obviously want good
remuneration, job security, etc. The organisation should find out ways to reach
win-win situations, where the needs of the employees are fulfilled even while
they add value to the organisation.
Check Your Progress 2
Note: i) Use the space given below for your answers.
ii) Check your answers with those given at the end of the Unit.
1. Explain the theoretical framework of Organisational Behaviour.
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
2. Discuss the different Organisational Behaviour models.
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..

20
1.8 CONCLUSION Organisational
Behaviour: Meaning,
Organisational Behaviour is the study of an individual’s behaviour within an Features, Significance
and Models
organisation (primarily in his organisational role), of the relationship between
the individual and the organisation, and of the organisation itself. Although
each of these can be investigated in isolation, it is essential to study all the three
aspects together to gain a comprehensive understanding of the matter being
studied.

1.9 GLOSSARY
Organisational Behaviour : A field of study that investigates the impact
that individuals, groups, and structures have
on behaviour within organisations, for the
purpose of applying such knowledge toward
improving an organisation’s effectiveness
(Robbins and Judge, 2019).
Globalisation : Globalisation implies giving rise to new
societal expectations, changing value systems,
altering the nature of State and governing
systems. This is putting pressure on public
administration to respond to the widely
fluctuating shifts. It is resulting in major
changes in the nature of the State.

1.10 REFERENCES
Callahan, R. E., Patrick, F.C. & Knudson, H.R. (1985). Understanding
Organizational Behavior: A Casebook. Glencoe: McGraw-Hill School Pub
Co.
Daft, R.L. (2012). Organization Theory and Design. Mason, Ohio, USA:
Cengage Learning.
Drucker, P. F. (1999): Management Challenges for the 21st Century, New
York: Harper Business.
Dwivedi, R.S. (2011). Human Relations and Organisational Behaviour: A
Global Perspective. New Delhi, India: MacMillan India Ltd.
Locke, E.A. (2003). The Blackwell Handbook of Principles of Organisational
Behavior. Wiley Blackwell.
¬Luthans, F. (2011). Organizational Behavior: An Evidence-Based Approach
(12th ed.). Irwin, UK: McGraw-Hill.
Nayar, V. (2010). Employees First, Customers Second: Turning Conventional
Management Upside Down. New York, India: Harvard Business Review
Press.
Newstrom, J. W. & Davis, K. (2015). Organisational Behaviour: Human
Behaviour at Work. New Delhi, India: Tata McGraw Hill Publishing
Company.
21
Concept and Robbins, S.P. & Judge, T.A. (2019). Organizational Behavior (18th ed.). New
Relevance of Delhi: Pearson Publication.
Organisational
Behaviour Selznick, P. (1948). Foundations of the Theory of Organizations. American
Sociological Review. 13 (1): 25-35.
Skinner, B.F. (1950). Are theories of learning necessary? Psychological Review.
57(4): 193-216.
Smith, A. (1776). The Wealth of Nations. London: W. Strahan and T. Cadell,
Weber, M. (1978). Economy and Society: An Outline of Interpretive Sociology.
California, USA: University of California Press.

1.11 ANSWERS TO CHECK YOUR PROGRESS

EXERCISES
Check Your Progress Exercise 1
1. Your answer should include the following points:
• An organisation is a group of two or more people who work together to
achieve agreed objectives.
• Organisational behaviour is directly concerned with the understanding,
production and control of human behaviour in organisations.
• It includes the basic processes of leadership, motivation, communication, team
building and other related facets of human behaviour in organisations.
2. Your answer should include the following points:
• Globalisation
• Customer orientation
• Innovation and disruption
• Work environment
Check Your Progress Exercise 2
1. Your answer should include the following points:
• Behavioural framework
• Cognitive framework
• Social Cognitive framework
2. Your answer should include the following points:
• Autocratic model
• Custodial model
• Supportive model
• Collegial model

22 • Systems model
UNIT 2 FOUNDATIONS OF Organisational
Behaviour: Meaning,
INDIVIDUAL BEHAVIOUR: Features, Significance
and Models
DETERMINANTS, MODELS
AND PERCEPTIONS*
Structure
2.0 Objectives
2.1 Introduction
2.2 Biological factors
2.3 Ability
2.4 Personality
2.5 Determinants and models
2.6 The Myers-Briggs Type Indicator (MBTI)
2.7 Perceptions
2.7.1 Factors that Influence Perception

2.7.2 Process of perception

2.8 Conclusion
2.9 Glossary
2.10 References
2.11 Answers to Check Your Progress Exercises

2.0 OBJECTIVES
After reading this Unit, you should be able to:
• Understand the factors that affect individual behaviour;
• Understand the determinants of personality;
• Appreciate the usefulness of MBTI instrument; and
• Understand the importance of and factors affecting perceptions.

2.1 INTRODUCTION
Organisations are much more than a mere group of human beings. However,
there is no doubt that human beings are a vital part of all organisations, and as
such human psychology has considerable impact on organisational behaviour.
Since no two humans are alike, one notices a variety of behavioural pattern
within an organisation. Some of these will be in sharp contrast to others,
leading to possible conflicts. To be effective in an organisation, one ought to
possess knowledge about different types of human behaviour. This will help in
augmenting personal satisfaction and organisational effectiveness. There are
several factors that contribute to differences among individuals.
23
*
Contributed by Dr. Lishin Moothery Joshy, Associate Professor, SCMS Cochin School of Business, Cochin.
Concept and
Relevance of
2.2 BIOLOGICAL FACTORS
Organisational We are a product of our genes and the environment in which we grow up.
Behaviour
Thus, both ‘nature’ and ‘nurture’ influence our behaviour. Biology affects
human behaviour through genetically regulated heredity. How much of
our behaviour is a product of biological factors and how much is due to the
environmental context is still an open question. Biological factors control the
flow of neurotransmitters (chemicals that transmit messages from one nerve
cell to another) in the brain. Hereditary, on the other hand, refers to the aspects
pre-determined at conception. Inherited factors account for matters like height,
complexion, strength etc. Some researchers suggest that it is in the molecular
structure of the chromosomes that determine the nature of one’s personality.
A few studies about identical twins separated at birth indicate that there are
several similarities in personality and behaviour of the separated twins even
when they are raised in totally different environments. This result would not
have been obtained, had there been no effect of hereditary factors on behaviour.
However, genes do not account for all the similarities/dissimilarities in behaviour
of human beings; human behaviour is also influenced by life experiences and
environment. In fact, all things that happen around us shape our personality and
condition our responses to them. The behaviour of our parents, the value system
imparted to us, the education that we received, the kind of friends that we have,
the society that we grow up in etc., are factors that influence our personality and
behaviour.

2.3 ABILITY
Ability means the mental or physical capacity to do something. It follows
that an organisation cannot achieve its stated objectives in the most efficient
manner without the support of its ‘able’ members. A person’s abilities are also
determined by both genetics and environmental factors. Imagine someone who
has the genes required to be a great sportsperson. However, he needs to nurture
his inborn talent if he really has to become a sportsperson. Thus, although he is
born with an advantage, it will get wasted if the environment is not conducive
to his growth. The opposite is also true. A person who is not a born-athlete can
also do wonders on the sports arena through continuous training and practice,
especially since many who are naturally gifted do not turn up on the field due to
lack of a conducive environment.

2.4 PERSONALITY
Personality is a set of characteristics or qualities that form a person’s distinctive
character. This set comprises behaviours, thoughts, ideas, habits, perceptions
and emotional patterns that originate from biological and environmental factors.
The word ‘personality’ has been derived from the Latin word “persona” which
means “mask” used by actors to change their appearance. Gordon Allport (1937)
defined ‘personality’ seven decades ago as the “dynamic organisation within the
individual of those psychological systems that determine his unique adjustment
to his environment”. Kurt Lewin considers personality as “a dynamic totality
of systems”. According to American psychologists Randy Larsen and David
Buss, “personality is a stable, organised collection of psychological traits and
24 mechanisms in the human being that influences his or her interactions with and
modifications to the psychological, social and physical environment surrounding Foundations of
them”. J.F. Dashiell regards personality as “the sum total of behaviour trends Individual Behaviour:
Determinants, Models
manifested in social adjustments” (Aggarwal, 2014). and Perceptions
The concept of ‘personality’ is understood by both the common man and the OB
practitioners alike. Lay people often refer to this concept when talking about
people who have dashing ‘personalities’ or about people who have charming
‘personalities’. For OB practitioners, the concept of personality is crucial to
understand and manage the workforce. It allows them to analyse why their
employees are behaving in a particular fashion and why some of them are good
organisational citizens and why some are not.

2.5 DETERMINANTS AND MODELS

Personality research identifies the determinants of personality as ‘nature’ or
biological heritage/hereditary and ‘nurture’ or life experiences/ environment.
Nature/Biological Personality Nurture/ Life experiences/
heritage/ Hereditary Culture

A ‘trait’ is a particular component of personality. Researchers have, over the

years, prepared long lists of personality traits. A trait describes whether a person
is shy or outgoing, has an open or closed nature etc. Since a very large number
of personality traits are not of much use, neither in research nor in practical
situations, researchers have focused on five core personality traits, called ‘Big
Five’ personality traits. The following are the Big five factors: extraversion,
agreeableness, conscientiousness, emotional stability, and openness to
experience.
Extroversion: The extroversion dimension captures sociability, being
comfortable with relationships, talkativeness, being enthusiastic and
assertiveness. Extrovert persons tend to be happier when they have people
around them, rather than when they are alone. They find psychological
fulfillment from the outside world rather than from within. They like to be part
of social gatherings and it follows that they will get along well with a group in
an organisational setting. They search for chances to engage with the outside
world. Hence, such people are suitable for jobs that involve a high degree of
inter-personal communication. They are also likely to take up and succeed in
leadership roles as they generally tend to be assertive.
Introverts are quite the opposite of extroverts. They tend to be reserved and
nervous, and their quiet nature leads them to have fewer interactions with the
outside world. However pure extroverts and pure introverts are a rarity. Most
people belong to somewhere in between these two extremes. Extroversion,
rather than introversion, being one of the Big Five personality traits, we can
define introverts as people low on the extroversion scale.
Emotional stability: The emotional stability dimension measures a person’s
capability to endure stress. People with adequate emotional stability are not easily
disturbed by unfavorable environment or events at the workplace or elsewhere.
Conversely, they generally tend to be cool and composed and do not overreact
to external stimuli. The opposite of emotional stability is ‘Neuroticism’. People
25
Concept and who are high in Neuroticism get frustrated very easily and are almost always in
Relevance of a bad mood. They feel stressed at work and react aggressively and negatively
Organisational
Behaviour
at the slightest provocation. Although this can affect their performance at the
workplace to a very large extent, it is also believed that since such people have
the tendency to be critical, they are the best suited for jobs requiring critical
thinking, evaluation, quality control etc.
Agreeableness: Agreeableness is the tendency to get along well with others.
Agreeable people are empathetic and cooperative rather than being suspicious
about others. They tend to be good team players and are well liked by others.
Hence they excel in jobs that require team building and fostering of relationships.
However, they may find it difficult to do jobs that require them to be firm and
tough with others. They might find it difficult to take harsh decisions affecting
others.
Conscientiousness: Conscientiousness is the degree to which a person is
careful, cautious, self-disciplined, meticulous, dutiful, reliable and dependable.
Conscientious people achieve success through meticulous planning and its
careful execution. However, they can tend to be over-zealous perfectionists and
hence the returns that they get may not justify the efforts put in. Those who
score low on this dimension are relatively more unorganised and dependable,
but they may, at times, reap short-term benefits.
Openness to experience: Openness to experience captures the extent to
which an individual is open to be innovative and non-conforming. Openness
is generally considered a healthy trait. However different jobs require different
levels of openness to experience. A lecturer or a researcher needs to be open;
however, this trait may not suit a soldier or a policeman.
Check Your Progress 1
Note: i) Use the space given below for your answers.
ii) Check your answers with those given at the end of the Unit.
1. ‘Both biological and environmental factors influence individual
behaviour’. Do you agree? Why?
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
2. Define Personality. Which are the Big Five personality traits?
......………………….……………………………………………………..
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......………………….……………………………………………………..
......………………….……………………………………………………..

26
2.6 THE MYERS-BRIGGS TYPE INDICATOR Foundations of
Individual Behaviour:
(MBTI) Determinants, Models
and Perceptions
Myers-Briggs Type Indicator (MBTI) instrument was developed by Isabel
Briggs Myers and her mother, Katharine Cook Briggs to help people understand
and appreciate differences in each other’s personalities and to thereby increase
productivity of teams comprised of diverse people. According to Isabel
Briggs Myers, when people differ, knowledge of the ‘type’ of each of them
reduces the friction between them and thereby eases the strain in interpersonal
relationships. She adds that it reveals the value of differences. To her, no one
has to be good at everything. According to Isabel Briggs Myers, “it is up to
each person to recognise his or her true preferences.” She says that people can
develop themselves at any age by understanding their ‘type’ and by making
appropriate use of their gifts.
MBTI instrument is the most widely used personality assessment instrument. It
assigns people to one of 16 personality types based on four bipolar dimensions:
extroverted (E)–introverted (I); sensing (S)–intuitive (I); thinking (T)–feeling
(F); and perceiving (P)–judging (J). The instrument helps one to become aware
of one’s personality preferences. A preference is what one likes. You may prefer
tea to coffee. But that doesn’t mean that you will never have coffee. Similarly,
on being pressurised, you may go out on a picnic even though you would have
preferred to stay back home. A preference is not what you actually do, but what
you want to do.
Extroverts look outward and find energy in interaction with others. By contrast,
introverts turn inwards and find energy by spending time alone. Sensors use
as-is data: they are concerned with actual physical reality that they experience
through their five senses. Intuitive people use their hunches. They recognise
patterns in what they see, they read between the lines. Thinkers make objective
decisions based on logic. Feelers are subjective and tend to consider the people
involved and the circumstances while deciding. Perceivers are flexible and they
remain open to options while dealing with the outside world. Judgers want to
get things decided and closed.
One needs to ascertain one’s preference in each of the above mentioned
categories. This will reveal the personality type, which will be one of the sixteen
types shown below:

ISTJ ISFJ INFJ INTJ

ISTP ISFP INFP INTP

ESTP ESFP ENFP ENTP

ESTJ ESFJ ENFJ ENTJ

Extroverted (E)–introverted (I); sensing (S)–intuitive (I); thinking (T)–feeling
(F); and perceiving (P)–judging (J)
Personality Types 27
Concept and Each of the above refers to one of the ‘types’. ISTJ types are quietly systematic
Relevance of and logical, ESTJ types are active organisers and logical, and so on. Once
Organisational
Behaviour
you know your type you can decide which career will suit you best, what
your gifts are and where your talents lie. The MBTI instrument is used by top
organisations like APPLE, AT & T etc. Even the US Armed forces make use
of the same. It helps the organisations to put the right person on the right job
(www.myersbriggs.org).

2.7 PERCEPTIONS
Perception is the way in which something is regarded, understood, or interpreted.
Individuals organise their sensory impressions and interpret the same to derive
meaning. Perceptions are extremely important in an organisational context as it
is perceptions, not reality, that drive human behaviour. Employees may harbor
negative attitudes about the employer, if they ‘perceive’ the employer as unfair,
irrespective of whether the employer is actually unfair or not. The employer
may reward an employee if he is ‘perceived’ to be hardworking and efficient,
even if he is neither hardworking nor efficient.

2.7.1 Factors that Influence Perception

Factors in the perceiver

• Attitudes
• Motives
• Interests
• Experience
• Expectation

Factors in the
situation

• Time
Perception • Work setting
• Social setting

Factors in the target

• Novelty
• Motion
• Sound
• Size
• Background
• Proximity
• Similarity

Source: Robbins & Judge (2017).

Factors in the perceiver

When an individual tries to interpret or perceive, that interpretation is
generally influenced by the personal characteristics of the perceiver. Personal
characteristics that influence the perception process include attitudes, motives,
28
interests, experience and expectations. An ardent supporter of a political party Foundations of
may perceive the actions of the party as ‘just’ while the opponents of the same Individual Behaviour:
Determinants, Models
party may interpret those actions as grossly unfair. Here the target is the same, and Perceptions
but perceivers are different and hence the diversity in perceptions.
Factors in the target
Characteristics of the target also influence the perception process. Target
characteristics that influence the perception process are novelty, motion,
background, proximity, similarity, sound and size. For instance well-groomed
and impeccably dressed executives may be perceived favourably, whereas
shabbily dressed people will be looked upon unfavourably. This shows how the
factor of the thing/person being perceived affects perception.
Factors in the perceiver
Similarly, contextual factors also influence the perception process. The time
at which we see the object, the location and the social setting — all have an
impact on the perception process. For instance, a young man wearing only a
pair of shorts is not a misfit at a sea beach, but the same people who have seen
him at the beach see him wearing shorts in a formal meeting will perceive him
as too casual. Here neither the target (the young man), nor the perceivers have
changed. But the situation has. This shows how perception can get affected by
the context.

2.7.2 Process of Perception

Perception involves five sub-processes: stimulus, registration, interpretation,
feedback and reaction.
1. A stimulus situation initiates the perception process. It acts as the trigger.
2. Registration involves physiological mechanism, including both sensory
and neural. The sensory organs, eye, nose, ears, tongue and skin receive
the stimulus and initiate the excitation of nerve fibres. The nerve fibres, in
turn, transfer the impulses to the central nervous system.
3. Interpretation is a very important factor in the perception process. An
individual’s interpretation of a stimulus is influenced by his attitudes,
motives, experiences and expectations.
4. Feedback is important for interpreting the target. For example, in
organisations, a superior’s change in the voice tone might influence a
subordinate’s perception about something.
5. The perception process ends when the respondent reacts, either overtly or
covertly.
Stimulus Registration Interpretation Feedback Reaction

A large number of industrial conflicts happen because of the divergence

between the perceptual interpretations of the parties involved. We can minimise
the conflict in the work setting by correctly assessing interpretation of the
perception process of both the parties. Following are some of the errors that
influence perception and hence the decision-making process: 29
Concept and Selective Perception: It is the tendency to not notice things that we do not want
Relevance of to notice because they contradict our prior beliefs, or for any other reason. For
Organisational
Behaviour
example, a team leader may have a favourite member in the team. The leader
will (subconsciously) tend to not notice the favourite member’s occasional poor
performance. It is also true that we cannot take in and understand all that we
observe; we assimilate selectively. The point is that the selection is not done
randomly; instead it is based on our preferences.
Halo effect: It denotes the tendency to draw a general impression or an overall
judgement about an individual on the basis of a single trait. It is the halo effect
that makes people believes that world-class cricketers and superstars from the
film world can also become good legislators/administrators.
Contrast effect: It causes perceptions to be affected (enhanced or diminished)
due to comparisons with stimuli that rank higher or lower on the same
characteristics. We always judge people and things relative to other people
and things. An interviewer may negatively perceive an interviewee who is
interviewed immediately after a very strong candidate is interviewed. The
opposite is also true. A candidate who gets interviewed after a comparatively
weaker candidate is likely to create a favourable perception in the mind of the
interviewer.
Self-fulfilling Prophecy: It is also called the ‘Pygmalion effect’ in which the
person’s expectation of another (target) has an influence on or is transferred to
the subject in such a way that the subject alters his or her behaviour in conformity
to the expectations. These models exemplify how a manager’s behaviour results
in self-expectancy of subordinates and thus motivates employees for registering
a better performance in the fulfillment of his responsibilities.
Stereotyping: A stereotype is an over-generalised belief about a particular
group of people. It is a fixed general image that is generally believed to represent
a particular type of person or thing. Once somebody is stereotyped it is assumed
that he will behave in a particular manner. Women are often stereotyped as
weak and men as aggressive and macho. ‘Metrosexual’ concept was an attempt
to break this stereotype. Mark Simpson who coined the term ‘metrosexual’ in
an article published in The Independent on 15 November, 1994, later described
(in 2012) David Beckham (2012) as the “the biggest metrosexual in Britain”
and defined a metrosexual man as a “young man with money to spend, living in
or within easy reach of a metropolis – because that’s where all the best shops,
clubs, gyms and hairdressers are”. A metrosexual man is especially meticulous
about his grooming and appearance, typically spending a significant amount of
time and money on shopping. However this depiction has not stuck and the old
stereotypes still continue!
With reference to perceptions, studies have shown that what the employees
perceive from their work situation influences their efficiency. Therefore,
to influence productivity, it is essential for managers to assess how workers
perceive their jobs. Factors like absenteeism, turnover and job satisfaction
are important in an employee’s perception of the job. Those individuals who
perceive their jobs as negative are likely to have increased absenteeism, more
frequent turnover and less job satisfaction. The only way to influence these
30 variables is to recognise how an employee personally perceives the workplace.
Thus, it can be stated that perception does influence decision-making within an Foundations of
organisation. Individual Behaviour:
Determinants, Models
Check Your Progress 2 and Perceptions

Note: i) Use the space given below for your answers.

ii) Check your answers with those given at the end of the Unit.
1. What is MBTI instrument? What is it used for?
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
2. Why are ‘Perceptions’ important? What are the factors that affect
perception?
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..
......………………….……………………………………………………..

2.8 CONCLUSION
Organisational behaviour is the study of both group and individual performance
and action within an enterprise. Individual behaviour can be defined as how
an individual behaves at work. Biological factors, environmental aspects and
personality traits determine how an individual behaves at workplace and in
general. Further, individual behaviour affects an organisation’s performance
to a very large extent. Hence the study of individual behaviour, in addition to
having academic importance, has great practical utility.

2.9 GLOSSARY
Myers-Briggs Type : MBTI instrument was developed by Isabel
Indicator Briggs Myers and her mother, Katharine
Cook Briggs to help people understand and
appreciate differences in each other’s
personalities and to thereby increase
productivity of teams comprised of diverse
people.

2.10 REFERENCES
Aggarwal, J.C. (2014). Essentials of Educational Psychology (3rd). New Delhi,
Vikas Publishing Pvt Ltd.
Allport, G. (1937). Personality: A Psychological interpretation. New York:
Holt.
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Concept and Champoux, J.E. (2010). Organizational Behavior: Integrating Individuals,
Relevance of Groups, and Organisations (4th ed.). Abingolon, UK: Routledge.
Organisational
Behaviour Colarelli, S.M. & Arvey, R.D. (2015). The Biological Foundations of
Organizational Behavior. Chicago: The University of Chicago Press.
Dwivedi, R.S. (2010). Human Relations and Organisational Behaviour: A
Global perspective (5th ed.). New Delhi: Macmillan.
Judge, T.A. & Robbins, S.P. (2017). Organizational Behavior (17th ed.). New
Year: Pearson Global Education.
Locke, E.A. (2003). The Blackwell Handbook of Principles of Organizational
Behavior. New York :Wiley Blackwell.
Luthans, F. (2011). Organizational Behavior: An Evidence-Based Approach
(12th ed.). New York: McGraw-Hill.
Robbins, S.P. (2002). Essentials of Organizational Behavior (7th ed.). Upper
Saddle River, NJ:Prentice Hall.
Robbins, S.P., Judge, T.A. & Vohra, N. (2014). Organizational Behavior (16th
ed.). New York: Pearson.

2.11 ANSWERS TO CHECK YOUR PROGRESS

EXERCISES
Check Your Progress Exercise 1
1. Your answer should include the following points:
• Biology affects human behaviour through genetically regulated heredity.
• Biological factors control the flow of neurotransmitters (chemicals that
transmit messages from one nerve cell to another) in the brain.
2. Your answer should include the following points:
• Organised collection of psychological traits and mechanisms in the human
being that influences his or her interactions with and modifications to the
psychological, social and physical environment surrounding them.
• Extroversion; Emotional stability; Agreeableness; Conscientiousness; and
Openness to experience.
Check Your Progress Exercise 2
1. Your answer should include the following points:
• Myers-Briggs Type Indicator (MBTI) instrument was developed by Isabel
Briggs Myers and her mother, Katharine Cook Briggs.
• To help people understand and appreciate differences in each other’s
personalities and to thereby increase productivity of teams comprised of
diverse people.

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2. Your answer should include the following points: Foundations of
Individual Behaviour:
• Perception is the way in which something is regarded, understood, or Determinants, Models
interpreted. Individuals organise their sensory impressions and interpret the and Perceptions
same to derive meaning.
• Selective perception; Halo effect; Contrast effect; Self- fulfilling prophecy;
and Stereotyping.

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