Module 1

Organisational Behaviour

Organizational behavior (OB) or organisational behaviour is "the study of human

behavior in organizational settings, the interface between human behavior and the organization, and
the organization itself."

Organizational Behavior (OB) can be defined as the understanding, prediction and

management of human behavior both individually or in a group that occur within an organization.

OB is the study of human behaviour at work in organisations.

Organizational behavior (OB) is the academic study of the ways people act within
groups. Its principles are applied primarily in attempts to make businesses operate more effectively.

Scope of OB

O.B. is the study of human behaviour at work in organizations. Accordingly, the scope of
O.B. includes the study of individuals, groups and organization/structure. Let us briefly reflect on
what aspects each of these three cover.

• Individuals

Organizations are the associations of individuals. Individuals differ in many respects. The study of
individuals, therefore, includes aspects such as personality, perception, attitudes, values, job
satisfaction, learning and motivation.

• Groups

Groups include aspects such as group dynamics, group conflicts, communication, leadership, power
and politics and the like.

• Organisation:

It includes aspects such as formation of organisational structure, culture, change and

development.

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 helps managers to encourage their sub-ordinates.

• It helps in predicting human behavior & their application to achieve organizational goals.

• It helps in making the organization more effective.

Theoretical Framework of OB

Cognitive Framework

Cognitive approach emphasizes the positive and freewill aspects of human

behavior and uses concepts such as expectancy, demand, and intention. Cognition can be simply
defined as the act of knowing an item of information. In cognitive framework, cognitions precede
behavior and constitute input into the person’s thinking, perception, problem solving, and
information processing. According to Tolman, learning consists of the expectancy that a particular
event will lead to a particular consequence. This cognitive concept of expectancy implies that
organism is thinking about, or is conscious or aware of the goal and result of a behavior exhibited by
it. It means that a person desires a goal and also knows the behavior that will lead to achievement of
the goals.

Behaviouristic Framework

Pioneer behaviorists Ivan Pavlov and Jon B. Watson stressed the importance of
studying observable behaviors instead of the elusive mind. They advocated that behavior could be
best understood in terms of stimulus and response (S-R). They examined the impact of stimulus and
felt that learning occurred when the S-R connection was made. Modern behaviorism, that marks its
beginning with B.F. Skinner, advocates that behavior in response to a stimulus is contingent on
environmental consequences.

Social Cognitive Framework

Social cognitive theory recognizes the importance of behaviourism’s contingent

environmental consequences, but also includes cognitive processes of self-regulation. The social part
acknowledges the social origins of much of human thought and action (what individual learns from
society), whereas the cognitive portion recognizes the influential contribution of thought processes
to human motivation, attitudes, and action. In social cognitive theoretical framework, organizational
participants are at the same time both products and producers of their personality, respective
environments, and behaviors. The participants as a group of produce the environment, every
individual is a product of the enironment and through his behavior changes the environment for
others as well as for himself, every individual is a product of his personality, but also influences his
personality as consequence of results of his behavior.

Limitations of OB

• It helps an individual to understand the human behaviour only in the worth of place.

• It focuses more to professional field than personal field.

• The dual personality of managers are always confusing.

• Employees feel more stressed due to constant observations.

• It makes an individual selfish.

• There are some hidden areas yet to be discovered in OB.

• OB creates a sense of competition within an individual.

Module 2

Attitude

An attitude is a mental and emotional entity that inheres in, or characterizes a

person. They are complex and an acquired state through experiences. It is an individual's
predisposed state of mind regarding a value and it is precipitated through a responsive expression
toward a person, place, thing, or event which in turn influences individual's thought and action.

In simple terms it can be defined as the way of feeling, dealing and behaving with
others.
 These can also be explicit and implicit.Explicit attitudes are those that we are
consciously aware of and that clearly influence our behaviors and beliefs. Implicit attitudes are
unconscious, but still, have an effect on our beliefs and behaviors.

Components of Attitude

1. Affective Component:

This component involves the person’s feeling or affect-positive, neutral or

negative-about an object. This component can be explained by this statement.

2. Behavioural Component:

The behavioural component consists of the tendency of a person to behave

in a particular manner towards an object.

3. Cognitive Component:

This component consists of beliefs, values, ideas and other information a

person has about the object. It makes no difference whether or not this information is empirically
correct or real.

Importance of Attitude

1. Attitudes help to develop the prevailing workplace environment that determines employee
morale, productivity and team building abilities.

2. It enhances the problem solving ability within an individual.

3. Attitude helps to sustain in an organisation.

4. It strengthens an individual’s decision making capacity in an organisation.

5. It helps to cope up with the situation easily.

Right Attitude

Attitude is someone's opinion or feeling about something usually shown by

the person's behavior. A right attitude will lead to increase in productivity and good working
environment. Attitude involves feelings, values, beliefs and disposition that make individuals to act
or behave in a certain way.
Advantages of positive attitude at the workplace

• It Creates a positive environment

• It helps to achieve goals and career success

• It helps in stress reduction and management

• It increases productivity levels.

• It improves teamwork

• It improves decision-making ability.

• It improves motivation for yourself and others

• It improves Interpersonal Relations

• It improves the attitude of other employees

• It increases self-esteem and confidence in yourself and others

Emotional Intelligence

Emotional intelligence (EI) is the capability of individuals to recognize

their own, and other people's emotions, to recognise between different feelings and label them
appropriately, to use emotional information to guide thinking and behavior, and to manage and/or
adjust emotions to adapt environments or achieve one's goal. Emotional intelligence also reflects
abilities to join intelligence, empathy and emotions to enhance thought and understanding of
interpersonal dynamics.

It is the capacity of recognising our own feelings and those of others

for motivating ourselves for managing emotions for ourselves as well as in our relationships.

Developing emotional intelligence at workplace

These strategies are based on Daniel Goleman’s five components of

emotional intelligence in the workplace.

1. Improve your self-awareness.

Self-awareness is the ability to understand and interpret your own moods, emotions, and inner
drives, and how these impact other people. People with a solid sense of self-awareness are generally
self-confident and have a realistic assessment of themselves, their thoughts, and their behaviors.

2. Improve your self-regulation.

Self-regulation is the ability to control or redirect impulsive actions and emotions that negatively
impact your potential for growth and leadership. This is the ability to “rise above” petty arguments,
jealousies, and frustrations.

3. Improve your motivation.

 In this context, motivation is your passion and enthusiasm for your work —
beyond your position, status, or income. You are driven by your energy and fulfilment in your work,
and you pursue goals with persistence. You love a challenge and you’re highly productive.

4. Improve your ability to show empathy.

Empathy is the ability to understand and respond appropriately to the

emotions of other people. You are skilled in treating people with respect, kindness, and
professionalism.

5. Improve your social skills.

Having good social skills in the workplace means you’re proficient at managing
relationships and building networks.

Job Attitude

A job attitude is a set of evaluations of one's job that constitute one's feelings
toward, beliefs about, and attachment to one's job.

There are three important attitudes toward work that OB has traditionally
studied: job satisfaction, job involvement, and organizational commitment. There are two other
work-related attitudes that are attracting attention: perceived organizational support and employee
engagement.

Barriers to changing attitude

Prior Commitment.

Insufficient Information.

Balance and Consistency.

Lack of Resources.

Improper Reward System.

Resistance to Change.

Prior Commitment

When people feel a commitment towards a particular course of action that has
already been agreed upon and thus it becomes difficult for them to change or accept the new ways
of functioning.

Insufficient Information
 It also acts as a major barrier to change attitudes. Sometimes people do not see a
reason why they should change their attitude due to unavailability of adequate information.

Sometimes people do not see a reason why they should change their attitude due to unavailability of
adequate information.

Balance and Consistency

Another obstacle to a change of attitude is the attitude theory of balance and

consistency i.e human beings prefer their attitudes about people and things to be in line with their
behaviors towards each other and objects.

Lack of Resources

If plans become excessively ambitious, they can sometimes be obstructed by the

lack of resources on the part of a company or organization.

So, in this case, if the organization wants to change the attitude of the employees towards the new
plan, sometimes it becomes impossible for the lack of resources to achieve this.

Improper Reward System

Sometimes, an improper reward system acts as a barrier to change attitude.If an

organization places too much emphasis on short-term performance and results, managers may
ignore longer-term issues as they set goals and formulate plans to achieve higher profits in the short
term.If this reward system is introduced in the organization, then the employees are not motivated
to change their attitude.

Resistance to Change

Another barrier is resistance to change.

Basically, change is a continuous process within and outside the organization to achieve the set goal.
When the authority changes a plan of the organization the employees have to change themselves.

Ways to overcome

• Providing new information

• Use of fear

• Resolving differences

• Influence of friends and peer

Chapter: Personality

PERSONALITY

Personality is a set of individual differences that are affected by the development of an

individual: values, attitudes, personal memories, social relationships, habits, and skills.

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.

As Krech and Crutchfield say, "The study of personality is one of the psychology's most
Intriguing puzzles and most difficult challenges".

Eysenck (1953:2), defining personality, stresses upon the concept of organisation

and also of adjustment of the individual to the environment. He defines personality”, “As more or
less stable and enduring organisation or a person's character, temperament, intellect and psychique,
which determine' his unique adjustment to the environment"

Personality Trait

Personality traits are the enduring features that define an individual’s behavior. A
personality trait is a unique feature in an individual.

Personality Attributes

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.

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.

Big Five Personality Model

This model consists of five personality traits those are as follows:

• Extroversion- It reflects a person’s comfort level with relationships. Extroverts are sociable,
talkative, assertive and open to establishing new relationships. Introverts are less sociable, less
talkative, less assertive and more reluctant.

• Agreeableness- It refers to the person’s ability to get along with others. Highly agreeable
people value harmony. Low agreeable focus more on their own needs than the needs of the others.

• Conscientiousness- It refers to the number of goals that a person focuses on. Highly
conscientiousness person focuses on relatively few goals at one time. A person with a low
conscientiousness nature tends to focus on a higher number of goals at one time.

• Emotional stability- It focuses on an individual’s ability to cope with stress. The individual
with positive emotional stability tends to be calm, enthusiastic and secure. A person with low
emotional stability tends to be nervous, depressed and insecure.

• Openness to experience- Extremely open people fascinated by novelty and innovation.

People with low levels of openness leads to be less receptive to new ideas and less willing to change
their minds.

Myers- Briggs Type Indicator

 It was developed by mother and daughter team of Katherine Briggs and
Isabel Briggs- Myers. It is a personality test developed that measures each of the traits of Jung’s
Model. It measures how people prefer to focus:

• Attention (Extroversion vs Introversion)\

• Collect information ( Sensing vs Intuition)

• Process and evaluate information ( Thinking vs Feeling)

• Orient themselves to the outer world ( Judging vs Perceiving)

Extraversion and Introversion

The first pair of styles is concerned with the direction of your energy. If you
prefer to direct your energy to deal with people, things, situations, or "the outer world", then your
preference is for Extraversion. If you prefer to direct your energy to deal with ideas, information,
explanations or beliefs, or "the inner world", then your preference is for Introversion.

Sensing vs Intuition

The second pair concerns the type of information/things that you process. If you
prefer to deal with facts, what you know, to have clarity, or to describe what you see, then your
preference is for Sensing. If you prefer to deal with ideas, look into the unknown, to generate new
possibilities or to anticipate what isn't obvious, then your preference is for Intuition.

Some people like collecting information. Sensing types use an organised structure
to acquire factual. Intuitive people collect information non- systematically.

Thinking vs Feeling

The third pair reflects your style of decision-making. If you prefer to decide on the basis of
objective logic, using an analytic and detached approach, then your preference is for Thinking. If you
prefer to decide using values - i.e. on the basis of what or who you believe is important - then your
preference is for Feeling.

Thinking types rely on the rational cause – effect logic and scientific method to make decisions.
Feeling types consider how their choices affect others.

Judging vs Perceiving

The final pair describes the type of lifestyle you adopt. If you prefer your life to be
planned and well-structured then your preference is for Judging. This is not to be confused with
'Judgmental', which is quite different. If you prefer to go with the flow, to maintain flexibility and
respond to things as they arise, then your preference is for perception.
 Some people prefer order and structure in their relationship with their outer world.
Perceiving are more flexible. They like to adopt spontaneously to events as they unfold and want to
keep their options open.

Personality and Job- Fit Theory

The personality–job fit theory postulates that a person's personality traits will reveal
insight as to adaptability within an organization. The degree of confluence between a person and the
organization is expressed as their Person-Organization (P-O) fit. This is also referred to as a person–
environment fit. A common measure of the P-O fit is workplace efficacy; the rate at which workers
are able to complete tasks. These tasks are mitigated by workplace environs- for example, a worker
who works more efficiently as an individual than in a team will have a higher P-O fit for a workplace
that stresses individual tasks (such as accountancy). By matching the right personality with the right
job, company workers can achieve a better synergy and avoid pitfalls such as high turnover and low
job satisfaction. Employees are more likely to stay committed to organizations if the fit is 'good'.

In practice, P-O fit would be used to gauge integration with organizational competencies. The
Individual is assessed on these competencies, which reveals efficacy, motivation, influence, and co-
worker respect. Competencies can be assessed using various tools like psychological tests,
assessment centres competency based interview, situational analysis, etc.

Personality Tests

1. Objective Test

An objective test is a psychological test that measures an individual’s characteristics in a

way that isn’t influenced by the examiner’s own beliefs; in this way, they are said to be independent
of rater bias. They usually involve the administration of a bank of questions that are marked and
compared against standardized scoring mechanisms, in much the same way that school exams are
administered. Objective tests tend to have more validity than projective tests (described below);
however, they are still subject to the willingness and ability of the examinee to be open, honest, and
self-reflective enough to accurately represent and report their true personality.

2. Projective

Projective measures, unlike objective tests, are sensitive to the rater’s or

examiner’s beliefs. Projective tests are based on Freudian psychology (psychoanalysis) and seek to
expose people’s unconscious perceptions by using ambiguous stimuli to reveal the inner aspects of
an individual’s personality. Two of the most popular projective measures are the Thematic
Apperception Measure and the Rorschach test.

The advantage of projective measures is that they purportedly expose certain

aspects of personality that are impossible to measure by means of an objective test; for instance,
they are more reliable at uncovering unconscious personality traits or features. However, they are
criticized for having poor reliability and validity, lacking scientific evidence, and relying too much on
the subjective judgment of a clinician.

Rorschach Test
 The Rorchach test consists of ten inkblots, which were created by Herman
Rorschach dribbling ink on paper and then folding over the paper to create a symmetrical design.
During the test, participants are shown the inkblots and asked what each one looks like. The test
administrator then asks questions about the responses, such as which part of the inkblot was linked
to each response. This test can be used to examine a person’s personality charactersitics and
emotional functioning, and is thought to measure unconscious attitudes and motivations.

Thematic Apperception Test

The Thematic Apperception Test (TAT) consists of 30 cards (including one

blank card) depicting ambiguous drawings. Test-takers are asked to tell a story about each picture,
including the background that led up to the story and the thoughts and feelings of the characters.
Like the Rorschach test, the results are thought to indicate a person’s personality characteristics and
emotional functioning.

Chapter: Perception

Perception

It is defined as the way of framing opinion regarding others. It is basically an opinion or

view which an individual reflect towards others based upon its own intellect.

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.

Perceptual Process

Perceptual process are the different stages of perception we go through. The different
stages are:

• Receiving

• Selecting

• Organizing

• Interpreting

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.

Stereotyping Effect

It is the perceptual errors. It is defined as, “Making positive or negative

generalisations about a group or category of people, usually based on inaccurate assumptions and
beliefs and applying these generalisations to an individual member of the group.”

Halo Effect

It is the perceptual error which occurs due to drawing general impression of

individual on the basis of a single positive characteristic.

Attribution Theory

Attribution theory is a Social Psychological theory that relates to the way in

which people explain their own behaviour and that of others. According to this theory, people tend
to attribute (or explain) psychological or external causes as the determining factor in behaviour.

Selective Perception

Selective perception is the tendency not to notice and more quickly forget
stimuli that cause emotional discomfort and contradict our prior beliefs. For example, a teacher may
have a favourite student because they are biased by in-group favouritism. The teacher ignores the
student's poor attainment.

Factors affecting Perception

A number of factors operate to shape and sometimes distort perception.

These factors are explained below:

i. In the perceiver

ii. In the object or target being perceived or

iii. In the context of the situation in which the perception is made.

Characteristics of Perception in Organisational Behaviour

Characteristics of the Perceiver

Several characteristics of the perceiver can affect perception. When an

individual looks at a target and attempts to interpret what he or she, that interpretation is heavily
influenced by personal characteristics of individual perceiver. The major characteristics of the
perceiver influencing perception are:

A. Attitudes: The perceiver's attitudes affect perception. For example, suppose Mr. X is
interviewing candidates for a very important position in his organization –a position that requires
negotiating contracts with suppliers, most of whom are male. Mr X may feel that women are not
capable of holding their own in tough negotiations. This attitude will doubtless affect his perceptions
of the female candidates he interviews.

B. Moods: Moods can have a strong influence on the way we perceive someone. We think
differently when we are happy than we do when we are depressed. In addition, we remember
information that is consistent with our mood state better than information that is inconsistent with
our mood state. When in a positive mood, we form more positive impression of others. When in a
negative mood, we tend to evaluate others unfavourably.

C. Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong influence
on their perceptions. For example, in an organizational context, a boss who is insecure perceives a
subordinate's efforts to do an outstanding job as a threat to his or her own position. Personal
insecurity can be transferred into the perception that others are out to "get my job", regardless of
the intention of the subordinates.

D. Self-Concept: Another factor that can affect social perception is the perceivers' self-concept.
An individual with a positive self-concept tends to notice positive attributes in another person. In
contrast, a negative self-concept can lead a perceiver to pick out negative traits in another person.
Greater understanding of self allows us to have more accurate perceptions of others.

E. Interest: The focus of our attention appears to be influenced by our interests. Because our
individual interests differ considerably, what one person notices in a situation can differ from what
others perceive. For example, the supervisor who has just been reprimanded by his boss for coming
late is more likely to notice his colleagues coming late tomorrow than he did last week. If you are
preoccupied with a personal problem, you may find it hard to be attentive in class.

F. Cognitive Structure: Cognitive structure, an individual's pattern of thinking, also affects

perception. Some people have a tendency to perceive physical traits, such as height, weight, and
appearance, more readily. Others tend to focus more on central traits, or personality dispositions.
Cognitive complexity allows a person to perceive multiple characteristics of another person rather
than attending to just a few traits.
G. Expectations: Finally, expectations can distort your perceptions in that you will see what you
expect to see. The research findings of the study conducted by Sheldon S Zalkind and Timothy W
Costello on some specific characteristics of the perceiver reveal.

• Knowing oneself makes it easier to see others accurately.

• One's own characteristics affect the characteristics one is likely to see in others.

• People who accept themselves are more likely to be able to see favourable aspects of other
people.

• Accuracy in perceiving others is not a single skill.

These four characteristics greatly influence how a person perceives others in the environmental
situation.

Characteristics of the Target

Characteristics in the target that is being observed can affect what is

perceived. Physical appearance plays a big role in our perception of others. Extremely attractive or
unattractive individuals are more likely to be noticed in a group than ordinary liking individuals.
Motion, sound, size and other attributes of a target shape the way we see it.

Physical appearance plays a big role in our perception of others. The perceiver will notice the
target's physical features like height, weight, estimated age, race and gender.

Perceivers tend to notice physical appearance characteristics that contrast with the norm, that are
intense, or that are new or unusual. Physical attractiveness often colour our entire impression of
another person. Interviewers rate attractive candidates more favourably and attractive candidates
are awarded higher starting salaries.

Verbal communication from targets also affects our perception of them. We listen to
the topics they speak about, their voice tone, and their accent and make judgements based on this
input.

Non-verbal communication conveys a great deal of information about the target. The
perceiver deciphers eye contact, facial expressions, body movements, and posture all inan attempt
to form an impression of the target.

The perceiver, who observes the target's behaviour, infers the intentions of the target.

For example, if our manager comes to our office door way, we think "oh no! he is
going to give me more work to do". Or we may perceive that his intention is to congratulate us on a
recent success. In any case, the perceiver's interpretation of the target's intentions affects the way
the perceiver views the target.

Targets are not looked at in isolation, the relationship of a target to its background
influences perception because of our tendency to group close things and similar things together.

Objects that are close to each other will tend to be perceived together rather
than separately. As a result of physical or time proximity, we often put together objects orevents
that are unrelated. For examples, employees in a particular department are seen as a group. If two
employees of a department suddenly resign, we tend to assume their departures were related when
in fact, they might be totally unrelated.

People, objects or events that are similar to each other also tend to be grouped
together. The greater the similarity, the greater the probability we will tend to perceive them as a
group.

Characteristics of the Situation

The situation in which the interaction between the perceiver and the target takes
place has an influence on the perceiver's impression of the target. For example, a professor may not
notice his 20-year-old female student in a bikini at the swimming pool. Yet the professor will notice
the same girl if she comes to his organizational behaviour class in abikini. In the same way, meeting a
manager in his or her office affects your impression in a certain way that may contrast with the
impression you would form had you met the manager in a restaurant.

The strength of the situational cues also affects social perception. Some
situations provide strong cues as to appropriate behaviour. In these situations, we assume that the
individual's behaviour can be accounted for by the situation, and that it may not reflect the
individual's disposition.

Chapter: MOTIVATION

Motivation

Motivation is derived from the Latin word “ Movere” which means to move or
energise or activate.

Motivation can also be defined as one's direction to behavior, or what causes

a person to want to repeat a behavior and vice versa.

It can be defined as the driving force which acts as a catalyst to influence an

individual to accomplish the goal.

Motivation is the reason for people's actions, willingness and goals.

Motivation is derived from the word motive which is defined as a need that requires satisfaction.
These needs could be wants or desires that are acquired through influence of culture, society,
lifestyle, etc. or generally innate. Motivation is one's direction to behaviour, or what causes a person
to want to repeat a behaviour, a set of force that acts behind the motives. An individual's motivation
may be inspired by others or events (extrinsic motivation)[1] or it may come from within the
individual (intrinsic motivation). Motivation has been considered as one of the most important
reasons that inspires a person to move forward in life.] Motivation results from the interaction of
both conscious and unconscious factors. Mastering motivation to allow sustained and deliberate
practice is central to high levels of achievement e.g. in the worlds of elite sport, medicine or music.]
Motivation governs choices among alternative forms of voluntary activity.
Maslow’s Need Hierarchy theory

- Maslow's hierarchy of needs is a theory in psychology proposed by Abraham

Maslow. Maslow stated that people are motivated to achieve certain needs, and that some needs
take precedence over others. Our most basic need is for physical survival, and this will be the first
thing that motivates our behaviour. Once that level is fulfilled the next level up is what motivates us,
and so on.

The need hierarchy is described as follows:

1. Physiological needs - air, food, drink, shelter, warmth, sleep, etc..

2. Safety needs - protection from elements, security, order, law, stability, freedom from fear.

3. Social needs - friendship, intimacy, trust and acceptance, receiving and giving affection and love.
Affiliating, being part of a group (family, friends, work).

4. Self Esteem needs - achievement, mastery, independence, status, dominance, prestige, self-
respect, and respect from others.

5. Self-Actualization needs - realizing personal potential, self-fulfilment, seeking personal growth and
peak experiences.

Herzberg’s Two factor theory

The two-factor theory (also known as Herzberg's motivation-hygiene theory

and dual-factor theory) states that there are certain factors in the workplace that cause job
satisfaction, while a separate set of factors cause dissatisfaction. It was developed by psychologist
Frederick Herzberg, who theorized that job satisfaction and job dissatisfaction act independently of
each other.

According, to Herzberg, satisfaction and dissatisfaction are not opposite

poles of one dimension, they are two separate dimensions.

Satisfaction Dissatisfaction

(affected by motivators) (affected by hygiene factors)

Frederick Herzberg's Two-Factor Theory, also known as Motivation-Hygiene

Theory or intrinsic vs. extrinsic motivation, concludes that there are certain factors in the workplace
that can cause job satisfaction and a separate set of factors that can cause dissatisfaction.
Comparison

Maslow’s Theory Herzberg two factor

1. It is based on the human needs 1. It is based on the use of motivators.

and satisfaction.

2. This theory is simple and 2. It is prescriptive in nature.

descriptive in nature.

3. In this theory any need can 3. In this theory only higher needs acts as motivator.

act as motivator.

Vroom’s Expectancy Model

It is based on the idea that work effort is directed towards behaviour that people believe
will lead to desired outcomes. Expectancy can be related as follows:

Effort – to – performance

Four important variables are as follows:

1. First and second level outcome

2. Expectancy

3. Valence

4. Instrumentality

Vroom stated that an employee's performance is based on individual’s

factors such as personality, skills, knowledge, experience and abilities. This model is based on the
belief that motivation is determined by the nature of the reward people expect to get as a result of
their job performance.

Porter’s and Lawler’s Model

This theory was proposed by Lyman Porter and Edward Lawler. This was an extension of
Vroom’s Expectancy Model. They stated that an individual’s motivation level is directly proportional
to reward system. They identified various dimensions and prospects as well.

The three extended dimensions are as follows:

1. Intrinsic and extrinsic rewards

2. Task requirements and abilities

3. Perceived fairness of rewards

Equity theory of work motivation

Equity Theory of Motivation, was developed in 1963 by John Stacey

Adams. This theory reflects an employee’s motivation level. It states that an individual feels more
competent and motivated if they are fairly paid in an organisation. It reflects that an organisation
can retain its employees and enhance their efficiency level as well as productivity level by treating
them equally. It is represented in the below stated equation:

Individual’s Output Other’s Output

Individual’s Input Other’s Input

John Stacey Adams introduced the idea that fairness and equity are key
components of a motivated individual. Equity theory is based in the idea that individuals are
motivated by fairness, and if they identify inequities in the input or output ratios of themselves and
their referent group, they will seek to adjust their input to reach their perceived equity. Adams
suggested that the higher an individual's perception of equity, the more motivated they will be and
vice versa: if someone perceives an unfair environment, they will be de-motivated.

The easiest way to see the equity theory at work, and probably the most
common way it does impact employees, is when colleagues compare the work they do to someone
else that gets paid more than them. Equity theory is at play anytime employees say things like, John
gets paid a lot more than me, but doesn't do nearly as much work,' or 'I get paid a lot less than Jane,
but this place couldn't operate without me!' In each of those situations, someone is comparing their
own effort-to-compensation ratio to someone else's and is losing motivation in the process.
Assumptions of the Equity Theory

• The theory demonstrates that the individuals are concerned both with their own rewards
and also with what others get in their comparison.

• Employees expect a fair and equitable return for their contribution to their jobs.

• Employees decide what their equitable return should be after comparing their inputs and
outcomes with those of their colleagues.

• Employees who perceive themselves as being in an inequitable scenario will attempt to

reduce the inequity either by distorting inputs and/or outcomes psychologically, by directly altering
inputs and/or outputs, or by quitting the organization

Module 3

GROUP

It refers to a collection of two or more interacting individuals with a stable pattern of

relationships between them, who share common goals and who perceive themselves as being a
group.

A group refers to two or more people who share a common meaning and evaluation of
themselves and come together to achieve common goals. In other words, a group is a collection of
people who interact with one another; accept rights and obligations as members and who share a
common identity.

According to D.H.Smith, “A group is the largest set of two or more individuals who are
jointly characterized by a network of relevant communication, a shared sense of collective identity
and one or more shared disposition with associated normative strength.

Characteristics of Group

• Two or more persons

• Interaction among members

• Formal social structure

• Common goals

• Recognition by others

Group Dynamics
 Group dynamics deals with the attitudes and behavioural patterns of a group. Group
dynamics concern how groups are formed, what is their structure and which processes are followed
in their functioning. Thus, it is concerned with the interactions and forces operating between groups.
Group dynamics is relevant to groups of all kinds – both formal and informal.

TYPES OF GROUPS

1. FORMAL GROUPS:

Formal groups is sub divided into three groups those are as follows:

• Command

• Task

• Functional

• Command Groups:

Command groups are specified by the organizational chart and often consist of a
supervisor and the subordinates that report to that supervisor. An example of a command group is a
market research firm CEO and the research associates under him.

• Task Groups:

Task groups consist of people who work together to achieve a common task. Members
are brought together to accomplish a narrow range of goals within a specified time period. Task
groups are also commonly referred to as task forces. The organization appoints members and
assigns the goals and tasks to be accomplished. Examples of assigned tasks are the development of a
new product, the improvement of a production process, etc.

• Functional Groups:

A functional group is created by the organization to accomplish specific goals

within an unspecified time frame. Functional groups remain in existence after achievement of
current goals and objectives. Examples of functional groups would be a marketing department, a
customer service department, or an accounting department.

2. INFORMAL GROUPS:

It can have a strong influence in organizations that can either be positive or negative.
Informal groups can take the form of interest groups, friendship groups, or reference groups.

• Interest Group:

Interest groups usually continue over time and may last longer than general
informal groups. Members of interest groups may not be part of the same organizational
department but they are bound together by some other common interest.

• Friendship Groups:

Friendship groups are formed by members who enjoy similar social activities,
political beliefs, religious values, or other common bonds. Members enjoy each other’s company and
often meet after work to participate in these activities. For example, a group of employees who form
a friendship group may have a yoga group, etc.

• Reference Groups:

A reference group is a type of group that people use to evaluate

themselves. The main objectives of reference groups are to seek social validation and social
comparison. Social validation allows individuals to justify their attitudes and values while social
comparison helps individuals evaluate their own actions by comparing themselves to others.
Reference groups have a strong influence on members’ behaviour. Such groups are formed
voluntarily. Family, friends, and religious affiliations are strong reference groups for most individuals.

GROUP DEVELOPMENT

There are five stages of group development those are as follows:

• Forming:

The first stage of a group is concerned with forming a group. This stage is characterized by
members seeking either a work assignment (in a formal group) or other benefit, like status,
affiliation, power, etc. (in an informal group). In this stage awareness, commitment and acceptance
is being found.
• Storming:

The next stage in this group is storming where members seek out familiar or similar
individuals and begin a deeper sharing of self. Continued attention to the subgroup creates a
differentiation in the group. Pairing is a common phenomenon. There will be conflict about
controlling the group. Conflict, clarification and belonging is seen in this stage.

• Norming:

The third stage of group development is marked by a more serious concern

about task performance. The dyads/triads begin to open up and seek out other members in the
group. Efforts are made to establish various norms for task performance. Members begin to take
greater responsibility for their own group and relationship while the authority figure becomes
relaxed. This stage includes cooperation, development and support.

• Performing:

This is a stage of a fully functional group where members see themselves as a

group and get involved in the task. Each person makes a contribution and the authority figure is also
seen as a part of the group. Group norms are followed and in this stage productivity, achievement
and pride.

• Adjourning:

The group decides to disband. Some members may feel happy over the performance,
and some may be unhappy over the stoppage of meeting with group members. Here in this stage
separation, recognising and satisfaction is reflected.

Chapter: Managing Teams

TEAM

A team is a small number of people having shared goals and have an approach for
which they hold themselves mutually accountable.
 A team is a number of persons associated together in work or activity as a group.

A team is a small number of complementary skills, who are committed to a common

purpose, performance goals and approach for which they are mutually accountable.

TYPES OF TEAMS

There are generally four common types of teams those are as follows:

• Problem Solving Team:

These are temporary teams established to attack specific problems in the work place. The
primary goals of these teams are improving quality, efficiency and the work environment. The
members share ideas or offer suggestions about how work process and methods can be improved.
After solving the problems, the team is usually disbanded allowing members to return to their
normal work.

• Managing Team:

These consists of managers from various areas and coordinate work teams. They are
relatively permanent because their work does not end with the completion of a particular project or
the resolution of a problem.

• Work Teams:

These are primarily concerned with the work done by the organisation. This refers to a
team of employees who perform highly related or inter-dependent jobs and to take on many of the
responsibilities of their former supervisors. Typically this includes planning and scheduling of work,
assigning tasks to members, collective control over the pace of work, making operating decisions
and taking action on problems.

• Virtual Team:

These are the teams that may never actually meet together in the same room but their
activities takes place at the same place. s. They allow people to collaborate on-line using
communication links such as wide area networks, video conferencing or e-mail. The three primary
factors that differentiate virtual teams from face to face teams are: i) the absence of Para verbal and
nonverbal cues, ii) limited social context and iii) the ability to overcome time and space constraints.

TEAM BUILDING

It is defined as planned interventions facilitated by a third-party consultant that

developed problem solving procedures and skills, increase role clarity, solve major problems and
improve effectiveness of work groups. Experts have clustered team-building activities into four
general types such as interpersonal process, goal setting, defining roles and problem solving.

i) Interpersonal Process: The resolution of conflicts between and among the team members by
creating a system of open communication by providing training on listening skills, negotiation skills
etc.

ii) Goal Setting: Focusing on shared understanding of the mission and goals of the team. During
this activity the team members clarify general goals and define specific tasks and sub goal to be
accomplished within a specific time with set measurement criteria and reporting mechanisms.

iii) Defining Roles: The members must define the roles without any ambiguity and ensure that
instructions are very clear. The responsibilities, norms and expressions and requirements of each
role are clarified.

iv) Problem Solving: The member must identify the problem and must follow steps such as
gathering and analysing data, finding causes, understanding solutions, choosing solutions, planning
an action and implementing and evaluating the action.

Chapter: Leadership

Leadership

Leadership is the ability to influence the behaviour of others.

Leadership is the process of encouraging and helping others to work

enthusiastically towards objectives.

Leadership is the relationship in which the leader influences others to work

together willingly on related tasks to attain goals desired by the leader or the group.

Styles of Leadership

Leadership style is the behaviour exhibited by the leader while influencing the
behaviour of the followers. The various leadership styles are as follows:

• Authoritarian Style

• Participative Style

• Free-rein Style

Authoritarian Style:

It is otherwise also known as autocratic style. It involves retention of full authority

by the leader. Leader decides, decision is passed on to subordinates instructions about the
implementation of decision are given and the subordinates are expected to be what the leader has
told them to do.

Participative Style:

There are 3 types of participative leaders:

(a)Consultative: Leaders solicit opinions from group before making a decision.

(b)Consensual: Leaders encourage group discussion on an issue and then make a decision that
reflects the general agreement of group members.

(c)Democratic: Leaders confer final authority on the group. Leaders delegate full authority to
subordinates.

Free-rein Style:

It is also known as Laissez-faire, free-rein leader chooses not to adopt a

leadership role and actually abdicates leadership position, generally relinquishing it to someone else
in the work group.

Theories of leadership:

1. Trait theory:

It focuses on the individual characteristics of successful leaders. Leaders possess a

set of traits which make them distinct from followers. As per Ralph Stogdill, he postulated certain
traits of successful leaders after the survey of 5000 leadership studies those are as follows:

A strong desire for accomplishment

Persistent pursuit of goals

Creativity and intelligence used to solve problems.

Initiative applied to social situations.

Self-assumed personality.

Willingness to accept behavioural consequences.

Low susceptibility to interpersonal stress.

High tolerance of ambiguity.

Ability to influence other people.

Ability structure social interactions.

2. Ohio State University Studies

They identified two independent leadership dimensions. - Initiating Structure: This

concerned the degree to which the leader organized and defined the task, assigned the work to be
done, established communication networks and evaluated workgroup performance. - Consideration,
which was defined as behaviour that involves trust, mutual respect, friendship; support and concern
for the welfare of the employee. Consideration refers to an emphasis on an employee orientation
leadership style. Their findings indicated that a mixture of initiating structure and consideration
leader behaviour, which are achieved the highest effectiveness, depends largely on situational
factors

3. The Michigan Studies:

The Michigan Leadership Studies were well-known series of leadership studies

that commenced at the University of Michigan in the 1950s by Rensis Likert, with the objective of
identifying the principles and types of leadership styles that led to greater productivity and
enhanced job satisfaction among workers. Two distinct styles of leadership were developed from
their studies: - Job-centered leaderships style, which focused on the use of close supervision,
legitimate and coercive power, meeting schedules and evaluating work performance. - Employee-
centered style, which is people oriented and emphasis delegation of responsibility and a concern for
employee welfare, needs, advancement and personal growth. Their findings reported that employee
centered and job centered styles result in productivity increase.

4. The Managerial Grid theory:

Blake and Mouton’s grid theory delineates five styles of leadership, based on
people and task orientation. The 5 basic styles of leadership are as follows:

• Impoverished Management

• Country Club Management

• Task Management

• Middle of the Road Management

• Team Management
5. Fiedler’s Theory:

Fiedler developed a model to predict work group effectiveness by taking into

consideration the best fit between the leadership style and the degree of favourableness of the
situation. The following three factors are considered to check whether the situation will be
favourable or unfavourable. These factors are i) Leader- Member relations, ii) Task structure of the
group, iii) Perceived position power of the manager.

6. Path Goal Theory:

A second situational theory of leadership has been proposed by House and Evan. The principle
function of the leader is facilitating to increase valence perception of their subordinates and clarify
and increase expectancy probabilities of them. This will in turn make them to put greater amount of
effort and derive higher level of satisfaction and performance in their work. The theory is composed
of two basic propositions such as i) role of the leader and ii) dynamics of the situation. The two main
aspects of this model are as follows:

Leadership Role: Leader behavior is acceptable and satisfying to the extent that subordinates
perceive such behavior as a source of satisfaction or instrumental to future satisfaction. There are
four styles of leadership: -

Directive Leadership Behavior: This deals with planning, organizing, controlling and coordinating of
subordinates activities by the leader. It is similar to the traditional dimension of initiating structure in
that the leader’s emphasis is on letting the subordinates know what is expected of them. –

Supportive Leadership Behavior: This concerns giving support consideration to the needs of the
subordinates, displaying concern for their well-being and welfare and creating a friendly and
pleasant environment. –

Participative Leadership Behavior: This deals with sharing of information and an emphasis on
consultation with subordinates and use of their ideas and suggestions in reaching group related
decision

Achievement-Oriented Leadership Behavior: This deals with setting challenging goals, expecting
subordinates to perform at the highest level, continually seeking improvement in performance. The
leader wants good performance, but at the same time displays confidence in the ability of his
subordinates to do a good job.

Dynamics of Situation: The leadership style is determined by the situation in which the leader
functions. Two main factors that influence the situational effectiveness of the leader’s behavior are:
a) the characteristics of the subordinates and b) the characteristics of his work environment,
including task, work group and other organizational factors. The theory proposes that leader
behavior will be perceived as acceptable to subordinates to the extent that the subordinates see
such behavior as either an immediate source of satisfaction or as needed for future satisfaction.

7. Situational Theory:

Situational leadership uses the same two leadership dimensions – task

and relationship behavior. However, the situational leadership approach goes a step further by
considering each as either high or low and then combining them into for specific leadership styles:
Directing, Coaching, Supporting and Delegating.

i) Directing: (high directive – low supportive): The leader defines roles and tells people what
tasks to do and how, when and where to do them. It emphasis directive behavior.

ii) Coaching: (high directive – high supportive): The leader provides both directive behavior
and supportive behavior)

iii) Supporting (low directive-high supportive): The leader and follower share in decision-
making, with the main role of the leader being facilitating and communicating.

iv) Delegating: (low directive-low supportive): The leader provides little direction or support.

Transformational Leadership:

Transformational leaders are those who inspire followers to transcend

their own self-interests for the good of the organization and are capable of having a profound or
extraordinary effect on their followers.

Transactional Leadership:

Transactional leaders are those who guide or motivate their followers in

the direction of establish goals by clarifying role and task requirements