ORGANIZATIONAL BEHAVIOR R HANJI

ORGANISATIONAL BEHAVIOR
Introduction
Organizational Behavior is field of study that investigates the impact that individuals,
groups and structure have on behavior within organization. It is the study and application of
knowledge about how people act within organizations. 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 services organizations. It covers three determinants of behavior in
organizations: individuals, groups, and structure. OB is an applied field. It applies the
knowledge gained about individuals, and the effect of structure on behavior, in order to make
organizations work more effectively. OB covers the core topics of motivation, leadership
behavior and power, interpersonal communication, group structure and process, learning,
attitude development and perception, change process, conflict, job design and work stress.

IMPORTANCE OF OB:
While working in an organization, it is very important to understand others behavior
as well as make others understand ours. In order to maintain a healthy working environment,
we need to adapt to the environment and understand the goals we need to achieve. This can
be done easily if we understand the importance of OB.

Following points bring out the importance of OB:

 It helps in explaining the interpersonal relationships employees share with each other
as well as with their higher and lower subordinates.

 The prediction of individual behavior can be explained.

 It balances the cordial relationship in an enterprise by maintaining effective

communication.

 It assists in marketing.

 It helps managers to encourage their sub-ordinates.

 Any change within the organization can be made easier.

 It helps in predicting human behavior & their application to achieve organizational

goals.

 It helps in making the organization more effective.

Thus studying organizational behavior helps in recognizing the patterns of human behavior
and in turn throw light on how these patterns profoundly influence the performance of an
organization.

Definition:
"Organizational behavior is a field of study that investigates the impact that
individuals, groups and structure have on behavior within organization for the purpose of
applying such knowledge toward improving an organization's effectiveness." - Stephen P.
Robbins

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"Organizational behavior can be defined as the understanding; prediction and

management of the human behavior affect the performance of the organizations. - Luthans

Challenges and Opportunities of Organizational Behavior

The following are some of the significant problems:

 Improving People Skills

 Improving Quality and Productivity
 Managing Workforce Diversity
 Responding to Globalization
 Empowering People
 Coping with Temporariness
 Stimulating Innovation and Change
 Emergence of the e-organization
 Improving Ethical Behavior
Characteristics of Organisational Behavior:
1. Behavioural Approach to Management:
Organisational behaviour is that part of whole management which represents the behavioural
approach to management. Organisational behaviour has emerged as a distinct field of study
because of the importance of human behaviour in organisations.

2. Cause and Effect Relationship:

Human behaviour is generally taken in terms of cause and effect relationship and not in
philosophical terms. It helps in predicting the behaviour of individuals. It provides
generalizations that managers can use to anticipate the effect of certain activities on human
behaviour.

3. Organisational Behaviour is a Branch of Social Sciences:

Organisational behaviour is heavily influenced by several other social sciences viz.
psychology, sociology and anthropology. It draws a rich array of research from these
disciplines.

4. Three Levels of Analysis:

Organisational behaviour encompasses the study of three levels of analysis namely individual
behaviour, inter-individual behaviour and the behaviour of organisations themselves. The
field of organisational behaviour embraces all these levels as being complementary to each
other.

5. A Science as well as an Art:

Organisational behaviour is a science as well as an art. The systematic knowledge about
human behaviour is a science and the application of behavioural knowledge and skills is an
art. Organisational behaviour is not an exact science because it cannot exactly predict the
behaviour of people in organisations. At best a manager can generalize to a limited extent and
in many cases, he has to act on the basis of partial information.

6. A Body of Theory, Research and Application:

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Organisational behaviour consists of a body of theory, research and application which helps
in understanding the human behaviour in organisation. All these techniques help the
managers to solve human problems in organisations.

7. Beneficial to both Organisation and Individuals:

Organisational behaviour creates an atmosphere whereby both organisation and individuals
are benefitted by each other. A reasonable climate is created so that employees may get much
needed satisfaction and the organisation may attain its objectives.

8. Rational Thinking:
Organisational behaviour provides a rational thinking about people and their behaviour. The
major objective of organisational behaviour is to explain and predict human behaviour in
organisations, so that result yielding situations can be created.

DETERMINANTS OF OB:
There are three major factors that affect OB. The working environment being the base
for all three factors, they are also known as the determinants of OB. The three determinants
are:
PEOPLE: An organization consists of people with different traits, personality, skills,
qualities, interests, background, beliefs, values and intelligence. In order to maintain a
healthy environment, all the employees should be treated equally and be judged according to
their work and other aspects that affects the firm.
Example: A company offers campus placement to trainees from different states like Orissa,
Haryana, Arunachal Pradesh and many more. However, during and after training, all trainees
are examined only on the basis of their performance in the tasks assigned.
The concept of OB is based on two key elements namely:
 Nature of people
 Nature of the organization
Nature of People:In simple words, nature of people is the basic qualities of a person, or the
character that personifies an individual they can be similar or unique. Talking at the
organizational level, some major factors affecting the nature of people have been highlighted.
They are:
 Individual Difference: It is the managerial approach towards each employee individually,
that is one-on-one approach and not the statistical approach, that is, avoidance of single rule.
Example: Manager should not be biased towards any particular employee rather should treat
them equally and try not to judge anyone on any other factor apart from their work.
 Perception: It is a unique ability to observe, listen and conclude something. It is believing
in our senses. In short, the way we interpret things and have our point of view is our
perception. Example: Aman thinks late night parties spoil youth while Anamika thinks late
night parties are a way of making new friends. Here we see both Aman and Anamika have
different perception about the same thing.
 A whole person: As we all know that a person’s skill or brain cannot be employed we
have to employee a whole person. Skill comes from background and knowledge. Our
personal life cannot be totally separated from our work life, just like emotional conditions are
not separable from physical conditions. So, people function is the functioning of a total
human being not a specific feature of human being.
 Motivated behavior: It is the behavior implanted or caused by some motivation from some
person, group or even a situation. In an organization, we can see two different types of
motivated employees:

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o Positive motivation: Encouraging others to change their behavior or say complete a task by
luring them with promotions or any other profits. Example: “If you complete this, you will
gain this.”
o Negative motivation: Forcing or warning others to change their behavior else there can be
serious consequences. Example: “If you don’t complete this, you will be deprived from the
office.”

CONCEPTS OF OB:
 Value of person: Employees want to be valued and appreciated for their skills and abilities
followed by opportunities which help them develop themselves.

NATURE OF ORGANIZATION:
Nature of organization states the motive of the firm. It is the opportunities it provides
in the global market. It also defines the employees’ standard; in short, it defines the character
of the company by acting as a mirror reflection of the company. We can understand the
nature of any firm with its social system, the mutual interest it shares and the work ethics.
Let us take a quick look at all these factors:
 Social system: Every organization socializes with other firms, their customers, or simply
the outer world, and all of its employees - their own social roles and status. Their behavior is
mainly influenced by their group as well as individual drives. Social system are of two types
namely:

Formal: Groups formed by people working together in a firm or people that belong to the
same club is considered as formal social system. Example: A success party after getting a
project.

Informal: A group of friends, people socializing with others freely, enjoying, partying or
chilling. Example: Birthday party.

 Mutual interest: Every organization needs people and people need organizations to survive
and prosper. Basically it’s a mutual understanding between the organization and the
employees that helps both reach their respective objectives. Example: We deposit our money
in the bank, in return the bank gives us loan, interest, etc.

 Ethics: They are the moral principles of an individual, group, and organization. In order to
attract and keep valuable employees, ethical treatment is necessary and some moral standards
need to be set. In fact, companies are now establishing code of ethics training reward for
notable ethical behavior.

SCOPE OF OB:
In a very broad sense, the scope of OB is the extent to which it can govern or
influence the operations of an organization. The scope of OB integrates 3 concepts
respectively:
Individual Behavior: It is the study of individual’s personality, learning, attitudes,
motivation, and job satisfaction. In this study, we interact with others in order to study about
them and make our perception about them.

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Example: The personal interview round is conducted to interact with candidates to

check their skills, apart from those mentioned in the resume.
Inter-individual Behavior:It is the study conducted through communication between the
employees among themselves as well as their subordinates, understanding people’s
leadership qualities, group dynamics, group conflicts, power and politics.
Example: A meeting to decide list of new board members.
Group Behavior:Group behavior studies the formation of organization, structure of
organization and effectiveness of organization. The group efforts made towards the
achievement of organization’s goal is group behavior. In short, it is the way how a group
behaves.
Example: Strike, rally etc. Organizational Behavior

OB – MODELS:
Organizational behavior reflects the behavior of the people and management all
together, it is considered as field study not just a discipline. A discipline is an accepted
science that is based upon theoretical foundation, whereas OB is an inter-disciplinary
approach where knowledge from different disciplines like psychology, sociology,
anthropology, etc. are included. It is used to solve organizational problems, especially those
related to human beings.
There are four different types of models in OB. We will throw some light on each of these
four models.

Autocratic Model
The root level of this model is power with a managerial orientation of authority. The
employees in this model are oriented towards obedience and discipline. They are dependent
on their boss. The employee requirement that is met is subsistence. The performance result is
less.
The major drawbacks of this model are people are easily frustrated, insecurity, dependency
on the superiors, minimum performance because of minimum wage.
Custodial Model
The root level of this model is economic resources with a managerial orientation of
money. The employees in this model are oriented towards security and benefits provided to
them. They are dependent on the organization. The employee requirement that is met is
security.
This model is adapted by firms having high resources as the name suggest. It is dependent on
economic resources. This approach directs to depend on firm rather than on manager or boss.
They give passive cooperation as they are satisfied but not strongly encouraged.
Supportive Model
The root level of this model is leadership with a managerial orientation of support.
The employees in this model are oriented towards their job performance and participation.
The employee requirement that is met is status and recognition. The performance result is
awakened drives.
This model is dependent on leadership strive. It gives a climate to help employees grow and
accomplish the job in the interest of the organization. Management job is to assist the
employee’s job performance. Employees feel a sense of participation.

Collegial Model
The root level of this model is partnership with a managerial orientation of teamwork.
The employees in this model are oriented towards responsible behavior and self-discipline.

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The employee requirement that is met is self-actualization. The performance result is

moderate zeal.
This is an extension of supportive model. The team work approach is adapted for this model.
Self-discipline is maintained. Workers feel an obligation to uphold quality standard for the
better image of the company. A sense of “accept” and “respect” is seen.

Organizational Behavior.
LEARNING
Learning can be defined as the permanent change in behavior due to direct and
indirect experience. It means change in behavior, attitude due to education and training,
practice and experience. It is completed by acquisition of knowledge and skills, which are
relatively permanent.

Nature of Learning
Nature of learning means the characteristic features of learning. Learning involves
change; it may or may not guarantee improvement. It should be permanent in nature, that is
learning is for lifelong.
The change in behavior is the result of experience, practice and training. Learning is reflected
through behavior.
Factors Affecting Learning
Learning is based upon some key factors that decide what changes will be caused by
this experience. The key elements or the major factors that affect learning are motivation,
practice, environment, and mental group.
Coming back to these factors let us have a look on these factors:
 Motivation: The encouragement, the support one gets to complete a task, to achieve a goal
is known as motivation. It is a very important aspect of learning as it acts gives us a positive
energy to complete a task. Example: The coach motivated the players to win the match.
 Practice: We all know that ”Practice makes us perfect”. In order to be a perfectionist or at
least complete the task, it is very important to practice what we have learnt. Example: We can
be a programmer only when we execute the codes we have written.
 Environment: We learn from our surroundings, we learn from the people around us. They
are of two types of environment – internal and external. Example: A child when at home
learns from the family which is an internal environment, but when sent to school it is an
external environment.
 Mental group: It describes our thinking by the group of people we chose to hang out with.
In simple words, we make a group of those people with whom we connect. It can be for a
social cause where people with the same mentality work in the same direction. Example: A
group of readers, travelers, etc.
These are the main factors that influence what a person learns, these are the root level for our
behavior and everything we do is connected to what we learn.
How Learning Occurs?
Learning can be understood clearly with the help of some theories that will explain
our behavior. Some of the remarkable theories are:
 Classical Conditioning Theory
 Operant Conditioning Theory
 Social Learning Theory
 Cognitive Learning Theory

Classical Conditioning Theory

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The classical conditioning occurs when a conditioned stimulus is coupled with an

unconditioned stimulus. Usually, the conditioned stimulus (CS) is an impartial stimulus like
the sound of a tuning fork, the unconditioned stimulus (US) is biologically effective like the
taste of food and the unconditioned response (UR) to the unconditioned stimulus is an
unlearned reflex response like salivation or sweating.
After this coupling process is repeated (for example, some learning may already occur after a
single coupling), an individual shows a conditioned response (CR) to the conditioned
stimulus, when the conditioned stimulus is presented alone. The conditioned response is
mostly similar to the unconditioned response, but unlike the unconditioned response, it must
be acquired through experience and is nearly impermanent.
Operant Conditioning Theory
Operant conditioning theory is also known as instrumental conditioning. This theory
is a learning process in which behavior is sensitive to, or controlled by its outcomes.
Let’s take an example of a child. A child may learn to open a box to get the candy inside, or
learn to avoid touching a hot stove. In comparison, the classical conditioning develops a
relationship between a stimulus and a behavior. The example can be further elaborated as the
child may learn to salivate at the sight of candy, or to tremble at the sight of an angry parent.
In the 20th century, the study of animal learning was commanded by the analysis of these two
sorts of learning, and they are still at the core of behavior analysis.
Social Learning Theory
The key assumptions of social learning theory are as follows:
Learning is not exactly behavioral, instead it is a cognitive process that takes place in a social
context.
Learning can occur by observing a behavior and by observing the outcomes of the behavior
(known as vicarious reinforcement).
Learning includes observation, extraction of information from those observations, and
making decisions regarding the performance of the behavior (known as observational
learning or modeling). Thus, learning can occur beyond an observable change in behavior.
Reinforcement plays an important role in learning but is not completely responsible for
learning.
The learner is not a passive receiver of information. Understanding, environment, and
behavior all mutually influence each other.
Cognitive Learning Theory
Cognition defines a person’s ideas, thoughts, knowledge, interpretation,
understanding about himself and environment.
This theory considers learning as the outcome of deliberate thinking on a problem or situation
based upon known facts and responding in an objective and more oriented manner. It
perceives that a person learns the meaning of various objects and events and also learns the
response depending upon the meaning assigned to the stimuli.
This theory debates that the learner forms a cognitive structure in memory which stores
organized information about the various events that occurs.
Learning & Organizational Behavior
An individual’s behavior in an organization is directly or indirectly affected by
learning.
Example: Employee skill, manager’s attitude are all learned. Organizational Behavior

Behavior can be improved by following the listed tips:

 Reducing absenteeism by rewarding employees for their fair attendance.

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 Improving employee discipline by dealing with employee’s undesirable behavior, drinking

at workplace, stealing, coming late, etc. by taking appropriate actions like oral reprimands,
written warnings and suspension.

 Developing training programs more often so as to grab the trainees’ attention, provide
required motivational properties etc.

The word personality is derived from a Greek word “persona” which means “to speak
through.” Personality is the combination of characteristics or qualities that forms a person’s
unique identity. It signifies the role which a person plays in public. Every individual has a
unique, personal and major determinant of his behavior that defines his/her personality.
Personality trait is basically influenced by two major features:
 Inherited characteristics
 Learned characteristics

Inherited Characteristics
The features an individual acquires from their parents or forefathers, in other words
the gifted features an individual possesses by birth is considered as inherited characteristics.
It consists of the following features:
 Color of a person’s eye
 Religion/Race of a person
 Shape of the nose
Shape of earlobes
Learned Characteristics
Nobody learns everything by birth. First, our school is our home, then our society, followed
by educational institutes. The characteristics an individual acquires by observing, practicing,
and learning from others and the surroundings is known as learned characteristics.

Learned characteristics includes the following features:

 Perception: Result of different senses like feeling, hearing etc.
 Values: Influences perception of a situation, decision making process.
 Personality: Patterns of thinking, feeling, understanding and behaving.
 Attitude: Positive or negative attitude like expressing one’s thought.
Traits of Personality
Personality traits are the enduring features that define an individual’s behavior. A
personality trait is a unique feature in an individual. Psychologists resolved that there are five
major personality traits and every individual can be categorized into at least one of them.
These five personality traits are:
PERSONALITY
 Extrovert
 Neurotic
 Open
 Agreeable
 Conscientious

Major Personality Attributes

Following are the five major personality attributes that influence OB:
Locus of Control:Locus of control is the center of control of an individual’s code of conduct.
People can be grouped into two categories i.e., internals and externals respectively.

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People who consider themselves as the masters of their own fates are known as internals,
while, those who affirm that their lives are controlled by outside forces known as externals.
Before making any decision, internals actively search for information, they are achievement
driven, and want to command their environment. Thus, internals do well on jobs that craves
complex information processing, taking initiative and independent action.
Externals, on the other hand, are more compliant, more willing to follow instructions, so, they
do well in structured, routine jobs.
Machiavellianism:Machiavellianism is being practical, emotionally distant, and believing
that ends justify means.
Machiavellians are always wanting to win and are great persuaders. Here are the significant
features of a high-mach individuals:
 High-Machs prefer precise interactions rather than beating about the bush.
 High-Machs tend to improvise; they do not necessarily abide by rules and regulations all
the time.
 High-Machs get distracted by emotional details that are irrelevant to the outcome of a
project.
Self-esteem
It is the extent up to which people either like or dislike themselves. Self-Esteem is
directly related to the expectations of success and on-the-job satisfaction.
Individuals with high self-esteem think that they have what it takes to succeed. So, they take
more challenges while selecting a job.
On the other hand, individuals with low self-esteem are more susceptible to external
distractions. So, they are more likely to seek the approval of others and to adapt the beliefs
and behaviors of those they respect.
Self-monitoring
Self-monitoring is the capability of regulating one’s behavior according to social
situations. Individuals with high self-monitoring skill easily adjust their behavior according to
external, situational factors. Their impulsive talents allow them to present public personae
which are completely different from their private personalities.
However, people with low self-monitoring skills cannot cover themselves. Regardless of any
situation, they are always themselves. They have an attitude of, “what you see is what you
get.”
Risk taking
Generally, managers are reluctant on taking risks. However, individual risk-taking
inclination affects the bulk of information required by the managers and how long it takes
them to make decisions.
Thus, it is very important to recognize these differences and align risk-taking propensity with
precise job demands that can make sense.

ORGANIZATIONAL STRUCTURE:
An organizational structure defines how activities such as task allocation,
coordination and supervision are directed toward the achievement of organizational
aims. Organisations need to be efficient, flexible, innovative and caring in order to achieve a

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sustainable competitive advantage. Organizational structure can also be considered as the

viewing glass or perspective through which individuals see their organization and its
environment. Structure is the layout design of an organization. It is the construction and
arrangement of relationships, strategies according to the organizational goal.
Example: Organizational structure defines the relation of a manager with employees and co-
workers.
Technology: Technology can be defined as the implementation of scientific knowledge for
practical usage. It also provides the resources required by the people that affect their work
and task performance in the right direction.
Example: Introduction of SAP, big data and other software in the market determines
individual and organizational performance.
Environment:All companies function within a given internal and external environment.
Internal environment can be defined as the conditions, factors, and elements within an
enterprise that influences the activities, choices made by the firm, and especially the behavior
of the employees. While external environment can be defined as outside factors that affect the
company's ability to operate. Some of them can be manipulated by the company’s marketing,
while others require the company to make adjustments.
Some examples of internal environment include employee morale, culture changes,
financial changes or issues, and some examples of external environment include political
factors, changes to the economy and the company itself. Organizational Behavior.

Forms of Organisational Structure

Simple Structure
Simple structure is the most commonly used structure in small businesses. This includes
organizations with fewer than 100 employees. This structure places the majority of the power
and decision-making with the business owner or manager. The strengths of an organization
using simple structure include quick decisions, owner awareness of the organization's day-to-
day operations and judgments made on what is best suited for organization. A big weakness
of simple structure is lost opportunities when the owner is not available to make decisions.
This structure does not work well for bigger organizations.
Functional Structure
Functional structure divides the workers into groups based on their job function, such as
personnel, marketing, production and finance. Groups might be based on product or service,
by process or equipment or by types of customers. These groups work together and exchange
information. Strengths of a functional structure include specialists prepared to make decisions
within their groups and that the CEO can run the entire organization with no concern about
routine problems. Weaknesses include area managers often concentrating on local, as
opposed to overall company strategic, matters, and interdepartmental conflicts from lack of
communication among groups.
Divisional Structure
Divisional structures are also referred to as multidivisional, M-form or geographic area
structures. This organizational structure splits into self-reliant units or divisions based on
location. Each works separately from the main or parent company. The strengths of divisional
structure include allowing corporate officers to more precisely examine each division’s
performance and encouraging division managers with poor showings to work on methods to
improve performance. Weaknesses include divisions competing for company resources and
lack of coordination between divisions.

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Matrix Structure
The matrix structure combines functional and divisional structures. This form brings
numerous skilled workers from various parts of the organization together as a team. They
focus on a specific project that is to be completed within a set time frame and often have
more than one manager. This organizational structure form is often used in multinational
companies. Strengths an weaknesses of this structure are similar to those encountered with
functional and divisional structures.

THEORIES OF PERSONALITY
A theory is a simple model of reality that helps us understand, explain, predict and
deal with reality. We have some theories that explain an individual’s personality.
Sigmund Freud’s Psychoanalytic Theory
This theory is based on the belief that man is encouraged more by unforeseen forces than the
conscious and logical thought. Freud believed that most of the things in life are not present at
the conscious level but they are present at an unconscious level.
The features of Freud’s theory include three attributes: Id, Ego, and Superego.
Id – It defines the innate component of personality. It is the impulsive and unconscious part
of mind that seeks immediate satisfaction. Example: A hungry baby cries till he/she is fed.

Ego – It is derived from Id and assists in dealing with the external world. It also helps in
translating the inner needs into expressions. It deals with practical and rational thinking
process. Example: We have a fight with our friend and expect the friend to talk first, even
though both of us want to talk.

Superego – It is different from ego and is partially unconscious. It includes the traditional
values of society as interpreted by our parents. It also helps in the integral vision of
punishment. Example: Ram came late today so he is grounded for a week.

Erikson’s Theory
This theory states that personality is groomed throughout lifetime. He presents eight
distinct stages each with two possible outcomes. Successful completion of each stage leads to
a healthy personality. These stages are:
Infancy – It is the period between 0-1 years of age. In this stage, children learn the ability to
trust others depending on their caregivers. Unsuccessful completion in this stage results in
anxiety and insecurity. Example: Children of this age are more comfortable with those faces
they see more often and not with strangers.
Early Childhood – It is the period between 1-3 years of age. In this stage, children learn to be
independent. If given support, they become more confident else they become dependent over
others. Example: Children in this age are taught how to walk, how to talk etc.

Play Age - It is the period between 3-6 years of age. In this stage, children assert themselves
frequently. The failure leads to development of a sense of guilt among them. Example:
Children in this age group, need to be taught how to behave and should be taught to be
focused.

School Age - It is the period between 6 years of age till puberty. In this stage, children
become more innovative. They feel confident and want to achieve their goals. If not
encouraged they may feel inferior. Example: Teenagers should be protected and parents need
to understand them and should handle them patiently.

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Adolescence - This stage is a transformation from childhood to adulthood. Here children find
their own identity and should be guided and supported in order to help them choose the right
direction. Example: Decision such as which stream to choose science or commerce etc.
happens during this stage.

Early Childhood - This stage is also known as young adulthood. Here, they begin to open up
and become more intimate with others. Example: Making close friends.

Adulthood - In this stage, they focus on establishing career and settling down with
relationships that are important. Example: Applying for jobs.

Mature Adulthood - In this stage, a person is old and thus in this stage the productivity slows
down. Example: Taking care of the family.

Sheldon’s Physiognomy Theory

This theory was proposed by William Sheldon. He presents personalities by
classifying individuals into convenient categories based on their body shapes. They are:
Endomorphs : In this category, the body is soft and spherical. People with this kind of
personality love comfort, eat a lot, like to be around people and desire affection. Some
common endomorph features are large amount of fat accumulation, insatiable appetite, larger
frame etc.
Some endomorph personalities are John Goodman, Jack Black etc.
Mesomorphs: In this category, the body is hard and rectangular physique. People with this
kind of personality like to take risk, are courageous and have power. Some common
mesomorph features are wide shoulders, small waist, low body fat.
Some mesomorph personalities are Jennifer Garner, Tina Turner etc.
Ectomorphs : In this category, the body is fragile, flat chest and delicate body. People with
this kind of personality are anxious, ambitious and dedicated. Some common ectomorph
features are narrow frame, low body fat, etc.
Some notable ectomorph personalities are Brad Pitt, Bruce Lee etc.
PERCEPTION:Perception is an intellectual process of transforming sensory stimuli to
meaningful information. It is the process of interpreting something that we see or hear in our
mind and use it later to judge and give a verdict on a situation, person, group etc.
It can be divided into six types:
Of sound: The ability to receive sound by identifying vibrations.

Of speech: The competence of interpreting and understanding the sounds of language heard.

Touch: Identifying objects through patterns of its surface by touching it.

Taste: The ability to receive flavor of substances by tasting it through sensory organs known
as taste buds.

Other senses: They approve perception through body, like balance, acceleration, pain, time,
sensation felt in throat and lungs etc.

Of the social world: It permits people to understand other individuals and groups of their
social world. Example: Priya goes to a restaurant and likes their customer service, so she will

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perceive that it is a good place to hang out and will recommend it to her friends, who may or
may not like it. Priya’s perception about the restaurant is good.

Perceptual Process: Perceptual process are the different stages of perception we go through.
The different stages are:
Receiving :Receiving is the first and most important stage in the process of perception. It is
the initial stage in which a person collects all information and receives the information
through the sense organs.
Selecting :Selecting is the second stage in the process. Here a person doesn’t receive the data
randomly but selectively. A person selects some information out of all in accordance with his
interest or needs. The selection of data is dominated by various external and internal factors.
External factors - The factors that influence the perception of an individual externally are
intensity, size, contrast, movement, repetition, familiarity, and novelty.

Internal factors - The factors that influence the perception of an individual internally are
psychological requirements, learning, background, experience, self-acceptance, and interest.

Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make sense of
the data received, it is important to organize them.
We can organize the data by:
Grouping them on the basis of their similarity, proximity, closure, continuity.

Establishing a figure ground is the basic process in perception. Here by figure we mean what
is kept as main focus and by ground we mean background stimuli, which are not given
attention.

Perceptual constancy that is the tendency to stabilize perception so that contextual changes
don’t affect them.

Interpreting
Finally, we have the process of interpreting which means forming an idea about a particular
object depending upon the need or interest. Interpretation means that the information we have
sensed and organized, is finally given a meaning by turning it into something that can be
categorized. It includes stereotyping, halo effect etc.

Importance of Perception in OB
We need to understand what the role of perception in an organization is. It is very
important in establishing different role of perceptions like:
 Understanding the tasks to be performed.
 Understanding associated importance of tasks allotted.
 Understanding preferred behavior to complete respective tasks.
 Clarifying role perceptions.

For example, every member in a group has to be clear regarding the role allotted to them.
Programmer writes the code, tester checks it, etc.

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MOTIVATION

Motivation can be described as the internal force that impacts the direction, intensity,
and endurance of a person’s voluntary choice of behavior. It consists of:
o Direction: focused by goals.

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o Intensity: bulk of effort allocated.

o Persistence: amount of time taken for the effort to be exerted.
Example: A team leader encourages team members to work efficiently.

Definition:
Dubin has defined motivation as “the complex of forces starting and keeping a person
at work in an organisation. Motivation is something that moves the person to action, and
continues him in the course of action already initiated”. Motivation refers to the way a person
in enthused at work to intensify his desire and willingness to use his energy for the
achievement of organisational objectives.
According to Dalton E.McFarland, “Motivation refers to the way in which urges,
drives, aspirations, striving or needs direct, control or explain the behaviour of human
beings”. Motivation has close relationship with the behaviour of human beings. It explains
how and why human behaviour is caused. Thus, motivation is a term which applies to the
entire class of urges, derives, desires, needs and similar forces.

Features of Motivation
Motivation is an internal feeling, that is, it defines the psychological state of a person.
It is a continuous process and we should make sure that it is not disturbed. A person should
be enco0uraged completely.

Motivation consists of three interacting and dependent elements:

 Needs: The requirements or deficiency which is created whenever there is
physiological imbalance.
 Drives: The various camps or events organized to motivate the employees and give
them new opportunities.
 Incentives: Employees need to be rewarded for their nice work in order to keep them
encouraged.

Importance of Motivation
We need to motivate employees because of the following reasons:
 Motivated employee are more quality oriented.
 Highly motivated employees are more productive as compared to other employees.
 It helps in achieving three behavior dimension of human resource namely:
 Candidates must be attracted not only to join but also remain in the firm.
 Employees must perform task in a dependable manner.
 Employees should be creative, spontaneous and innovative at work.

Maslow’s Hierarchy of Needs Theory

This theory was produced in order to answer the question “What motivates an
individual”. Every second need comes to force when the first need is satisfied completely.
Maslow explained the hierarchy of needs by grouping them into two: deficiency needs and
growth needs.

Physiological Needs
Every individual needs to take care of the basic requirements required to sustain.
These requirements include food to eat, clothing to wear and shelter to live in. These
necessities are relatively independent of each other but are finite.
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Safety Needs
Everybody wants to stay in a protected environment with minimal danger so that they
can have a peaceful life. Safety needs basically includes protection from physiological danger
like accident and having economic security like bank accounts, health insurance.
In an enterprise, it includes job security, salary increment, etc. The managerial practice to
satisfy this involves offering pension scheme, provident fund, gratuity etc.
Social Needs
We have all heard that man is a social animal, we want to be there with those people
where we are loved and we are accepted as we are; nobody wants to be judged. This is a
common requirement every human desires.

This theory helps managers to think about encouraging their employees by identifying
employee needs. In short, it presents motivation as constantly changing force, expressing
itself to the constant need for fulfilment of new and higher levels of needs.
Esteem
Esteem means the typical human desire to be accepted and valued by others. People
often involve in a profession or hobby to gain recognition, earn fame and respect. According
to Maslow, the needs of humans have strict guidelines - the hierarchies rather than being
sharply separated, are interrelated. This means that esteem and the consequent levels are not
strictly separated but are closely related.
Self-Actualization
Self-actualization means realizing one’s full potential. Maslow describes this as a
desire to complete everything that one can, to become the most that one can be.

THEORY X AND THEORY Y

Our management style is firmly influenced by our beliefs and assumptions about what
encourages members of our team like: If we believe that our team members dislike work,
then we tend towards an authoritarian style of management. However, if we assume that
employees take pride in doing a good job, we tend to adopt a more participative style.
Douglas McGregor, the eminent social psychologist, divides management style into two
contrasting theories:

Theory X
This theory believes that employees are naturally unmotivated and dislike working,
and this encourages an authoritarian style of management. According to this theory,
management must firmly intervene to get things done. This style of management concludes
that workers:
 Disfavor working.
 Abstain responsibility and the need to be directed.
 Need to be controlled, forced, and warned to deliver what's needed.
 Demand to be supervised at each and every step, with controls put in place.
 Require to be attracted to produce results, else they have no ambition or incentive to
work.

McGregor observed that X-type workers are in fact mostly in minority, and yet in
mass organizations, such as large scale production environment, X Theory management may
be needed and can be unavoidable.

Theory Y

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This theory explains a participative style of management, that is, distributive in

nature. It concludes that employees are happy to work, are self-motivated and creative, and
enjoy working with greater responsibility. It estimates that workers:
 Take responsibility willingly and are encouraged to fulfill the goals they are given.
 Explore and accept responsibility and do not need much guidance.
 Assume work as a natural part of life and solve work issues imaginatively.

GROUPS IN ORGANIZATION
A group can be defined as two or more interacting and interdependent individuals
who come together to achieve particular objectives. A group behavior can be stated as a
course of action a group takes as a family. For example: Strike.

Types of Groups
There are two types of groups an individual forms. They are formal groups and
informal groups. Let us know about these two groups.
Formal Groups
These are the type of work groups created by the organization and have designated
work assignments and rooted tasks. The behavior of such groups is directed toward achieving
organizational goals.
These can be further classified into two sub-groups:
 Command group: It is a group consisting of individuals who report directly to the
manager.
 Organizational Behavior
 Interest group: It is a group formed by individuals working together to achieve a
specific objective. Example: A group of workers working on a project and reporting
to the same manager is considered as a command group. A group of friends chilling
out together is considered as interest group or say members of a club.

Informal Groups
These groups are formed with friendships and common interests. These can be further
classified into two sub-groups:
 Task group: Those working together to finish a job or task is known as task group.
 Friendship group: Those brought together because of their shared interests or common
characteristics is known as friendship group.

ORGANISATION CULTURE AND CHANGE

Organizational culture can be defined as the group norms, values, beliefs and
assumptions practiced in an organization. It brings stability and control within the firm. The
organization is more stable and its objective can be understood more clearly.

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Organizational culture helps the group members to resolve their differences, overcome the
barriers and also helps them in tackling risks.

Elements of Organizational Culture

The two key elements seen in organizational culture are:
 Visible elements: These elements are seen by the outer world. Example, dress code,
activities, setup, etc.

 Invisible elements: These inner elements of the group cannot be seen by people outside
the group or firm. Example, values, norms, assumptions, etc. Now let us discuss some other
elements of organizational culture. They are:

 Stories: Stories regarding the history of the firm, or founder.

 Rituals: Precise practices an organization follows as a habit.

 Symbol: The logo or signature or the style statement of a company.

 Language: A common language that can be followed by all, like English.

 Practice: Discipline, daily routine or say the tight schedule everyone follows without any
failure.

 Values and Norms: The idea over which a company is based or the thought of the firm is
considered as its value and the condition to adopt them are called norms.

 Assumptions: It means we consider something to be true without any facts. Assumptions

can be used as the standard of working, means the employees prepare themselves to remain
above standard.

Different Types of Organizational Culture

The culture a firm follows can be further classified into different types. They are:
 Mechanistic and Organic culture
 Authoritarian and Participative culture
 Subculture and Dominant culture
 Strong and Weak culture
 Entrepreneurial and Market culture

Mechanistic and Organic Culture

Mechanistic culture is formed by formal rule and standard operating procedures.
Everything needs to be defined clearly to the employees like their task, responsibility and
concerned authorities. Communication process is carried according to the direction given by
the organization. Accountability is one of the key factors of mechanistic culture.
Organic culture is defined as the essence of social values in an organization. Thus
there exists a high degree of sociability with very few formal rules and regulations in the
company. It has a systematic hierarchy of authority that leads towards free flow of
communication. Some key elements of organic culture include authority, responsibility,
accountability and direct flow towards the employee.

Authoritarian and Participative Culture

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Authoritarian culture means power of one. In this culture, power remains with the top
level management. All the decisions are made by the top management with no employee
involvement in the decision making as well as goal shaping process. The authority demands
obedience from the employee and warns them for punishment in case of mistake or
irregularity. This type of culture is followed by military organization.
In participative culture, employees actively participate in the decision making and
goal shaping process. As the name suggests, it believes in collaborative decision making. In
this type of culture, employees are perfectionist, active and professional. Along with group
decision making, group problem solving process is also seen here.

Subculture and Dominant Culture

In subculture, some members of the organization make and follow a culture but not all
members. It is a part of organizational culture, thus we can see many subcultures in an
organization. Every department in a company have their own culture that gets converted to a
subculture. So, the strength and adaptability of an organizational culture is dependent on the
success of subculture.
In dominant culture, majority of subculture combine to become a dominant culture.
The success of dominant culture is dependent on the homogeneity of the subculture, that is,
the mixture of different cultures. At the same point of time, some cold war between a
dominant culture and a minor culture can also be seen.
Strong and Weak Culture
In a strong culture, the employees are loyal and have a feeling of belongingness
towards the organization. They are proud of their company as well as of the work they do and
they slave towards their goal with proper coordination and control. Perception and
commitment are two aspects that are seen within the employees. In this culture, there is less
employee turnover and high productivity.
In a weak culture, the employees hardly praise their organization. There is no loyalty
towards the company. Thus, employee dissatisfaction and high labor turnover are two aspects
of this culture.
Entrepreneurial and Market Culture
Entrepreneurial culture is a flexible and risk-taking culture. Here the employees show
their innovativeness in thinking and are experimental in practice. Individual initiations make
the goal easy to achieve. Employees are given freedom in their activity. The organization
rewards the employees for better performance.
Market culture is based on achievement of goal. It is a highly target-oriented and
completely profit-oriented culture. Here the relationship between the employees and the
organization is to achieve the goal. The social relation among the workers is not motivating.

How to Create an Organizational Culture

An organizational culture is created with the combination of certain criteria that are
mentioned below:
 The founder of the organization may partly set a culture.

 The environment within which the organization standards may influence its activities to
set a culture.

 Sometimes interchange of culture in between different organizations create different new

cultures.

 The members of the organization may set a culture that is flexible to adapt.

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 New cultures are also created in an organization due to demand of time and situation.

The culture of an organizational can change due to composition of workforce, merger

and acquisition, planned organizational change, and influence of other organizational culture.

ORGANIZATIONAL CHANGE
Organizational change can be defined as the alteration in structure, technology or
people in an organization or behavior by an organization. Here we need to note that change in
organizational culture is different from change in an organization. A new method or style or
new rule is implemented here.

An organizational change occurs due to two major factors namely:

 External factor – External factors are those factors that are present outside the firm but
force the firm to change or implement a new law, rule etc. For example, all banks are bound
to follow the rules laid down by the RBI.

 Internal factor – Internal factors are those factors that are caused or introduced inside an
organization that forces a change. For example, no smoking in the work place.

Kurt Lewin’s Force Field Analysis

Kurt Lewin, is a noted organizational theorist, who proposed the force field analysis
for organizational change. In this theory, he has prioritized two factors for change in an
organization, namely:
Driving force – Driving force can be defined as an organizational force that makes a
change with respect to structure, people and technology. In short, it drives the organization
from one culture to another.

Restoring force – Restoring force is the force which changes the culture from the
existing state to the old state. It indicates a backward motion while the driving force indicates
a forward motion.

Importance of Organizational Change

There is a need of change in an organization because there is always a hope for further
development, and in order to survive in a competitive market, the organization needs to be
updated with changes. However, we have listed some reasons to explain why changes are
deliberately made and carefully planned by the organization before implementation.
 It improves the means to satisfy the economic requirements of people.
 It enhances the profitability of organization.
 It promotes employee satisfaction and well-being.
Planned Change
We can define planned change as any kind of alteration or modification which is done
in advance and differently for improvement.

The Need for Planned Change

Planned change takes places in an organization when there is a demand for change
due to two types of forces. These forces are grouped into internal sources and external
sources.

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Internal forces that lead to a planned change in an organization include obsolescence

of production and service, new market opportunities, new strategic direction, increasing
workforce diversity, and shift in socio-cultural values.
External forces that lead to a planned change in an organization include regulators,
competitors, market force, customers, and technology. Each of these forces can create
pressing demand for change in small or big, public or private, business or non-business
organizations.

Process of Planned Change

Once the management decides to implement some changes in the organization, it
needs to be done carefully as it is a very sensitive issue. It is very important for all the
employees to adapt to change. According to Kurt Lewin, the planned organizational change is
implemented in three different stages. They are:
 Unfreezing – In this stage, the organization studies if the change is required or not, what
and why is the change necessary. Considering the entire situation, the organization decides
for appropriate change. Thus a plan and strategy is formulated as required.
 Changing – In this stage, the organization executes the plan and program for change. For
this purpose, proper precautions are taken in order to maintain cooperation and coordination
between the employees and management, avoiding miscommunication or disputes. Adequate
supervision and control is arranged as needed.
 Refreezing – This is the final stage, in order to bring organizational change. By way of
supervision, the organization tries to evaluate the effectiveness of change. Collecting all this
information, the management interprets whether to continue or replace change by some other
alternatives or to make further minor changes.

Types of Planned Change

On the basis of a company’s requirement planned change is classified into three types.
They are:
 Change in structure
 Change in technology
 Change in people

Change in Structure
We say that the planned change required is change in structure when development is
required in these following areas:
 Change in management
 New management
 Change in position or location
 Change in objective, rules, regulations etc.
 Launching new branches

Change in Technology
We say that the planned change required is change in technology when development
is required in these following areas:
 Need of office automation
 Installing new hardware and software
 Executing new working procedures
 New methods in production function
 Producing new products and devices
 New training, research and development program

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Change in People
We say that the planned change required is change in people when development is
required in these following areas:
 New candidate requirement
 Promotion or demotion
 Transfer to other location
 Suspension or dismissal
 Deputation
 Training and development

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