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Q-01: Organization
An organization is an entity—such as a company, or corporation or an institution or
an association comprising one or more people and having a particular purpose.
The word in English is derived from the Spanish organization, which itself is derived from the
medieval Latin organizationem and its root organum was borrowed whole from the Latin
word organon, which means tool or instrument, musical instrument, and organ.

An organization is a body built for a collection of individuals who join together to achieve some
common goals and objectives bounded by legal entities. Organizations are often referred to as
a company, institution, association, government body, etc. They follow certain legal procedures
like business registration, tax identification, and maintaining corporate book records.

The person or people who start the organization are often called the founders. The founders
are responsible for performing the above legal procedures or hiring someone for the same.

Q-02: Types of Organization

Flat Organization

A flat organization is exactly as its name suggests. While individuals may hold an expertise,
hierarchy and job titles are not stressed among general employees, senior managers, and
executives. In a purely flat organization, everyone is equal.

Flat organizations are also described as self-managed. The idea behind this organizational
structure is to reduce bureaucracy and empower employees to make decisions, become
creative problem solvers, and take responsibility for their actions. Since there are minimal or no
levels of middle management, a company that adopts this structure can end up being more
productive by speeding up the decision-making processes.

Functional Organization

Also referred to as a bureaucratic structure, a functional organization is one that divides a firm’s
operations based on specialties. Ideally, there’s an individual in charge of a particular function.
It’s like any typical business that consists of a sales department, human relations, and a
marketing department. It means that every employee receives tasks and is accountable to a
particular superior.

A functional organization confers several benefits. For one, there’s a total specialization of
work. Secondly, work is performed more efficiently since each manager is responsible for a
single function. The only drawback to adopting a functional organization is the fact that there’s
a delay in decision-making. All the functional managers must be consulted when making major
decisions, which can take time.
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Divisional Organization

A divisional organization structures its activities around a market, product, or specific group of
consumers. For instance, a firm can operate in the United States or Europe, or sell products
focused on a specific group of customers. Gap Inc. is the perfect case in point. It runs three
different retailers – Banana Republic, Gap, and Old Navy. Although each one operates as a
separate entity that caters to different consumer segments, they are all under the company
Gap Inc. brand.

Matrix Organization

A matrix organizational structure is a bit more complex, in that there’s more than one line of
reporting managers. It simply means that the employees are accountable to more than one
boss. Most firms that take on this organizational structure often have two chains of command –
functional and project managers.

A matrix organization offers several benefits. They include a clear articulation of the company’s
mission and objectives, effective use of limited resources, and improved retention of
professionals throughout the life of a company. Additionally, a matrix structure provides a
practical way of integrating the firm’s objectives with operations.

Q-03: Organizational Structure

An organizational structure is the way that a company, organization, or team is set up. It
can be hierarchical, with different levels of management.

An organizational structure defines how tasks are delegated to achieve an organization's goals.
It helps clarify employees' roles and responsibilities within the company. Generally, employees
with greater authority are positioned higher in the organizational hierarchy. A well-organized
structure enables a company to operate more efficiently, facilitating effective communication
and collaboration among team members.

An organizational structure defines how job titles, roles, and responsibilities are assigned
within an organization. It helps determine who reports to whom, and who makes decisions
about what.

Startups often have a matrix organizational structure, with different departments working
together on projects. Large organizations usually have a hierarchical structure with a clear
chain of command.

Organizational structures are important because they help businesses implement efficient
decision-making processes. organizational structures provide a clear org chart that helps
businesses keep track of their human resources.
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Key elements of an organizational structure

No matter the organization’s size, certain aspects of workplace decision-making and

processes need to be clear. At the minimum, each organization needs to designate:

i. Work specialization
ii. Chain of command
iii. Departmentalization and compartmentalization
iv. Span of control
v. Centralization and decentralization
vi. Formalization
vii. Types of organizational structures

There are several different types of organizational structures, each with its own advantages
and disadvantages. The most common are functional, divisional, matrix, project team, flat,
and network.

Functional organizational structures are best for small businesses because they allow
for clear decision-making hierarchies. Each team operates as an individual “silo.” Teams
often move faster and collaborate better with more overlap.

Divisional structures are best for large businesses because they allow for more
specialization. For example, a global company might divide their business into regions
(such as EMEA/APAC), or broad service categories (like B2B/D2C).

In the matrix structure, employees work in both functional and project teams which may
be structured differently. Employees then typically report to two bosses: one who oversees
their day-to-day work, as well as another boss that oversees larger projects or tasks.

A project team approach would include any number of functions working together on a
specific project without a permanent hierarchy. Employees report up through their
individual bosses. But they also contribute to team efforts led by managers from other
departments on the team as needed.

Flat organizations have as little hierarchical structure as possible. Middle managers are
largely absent from staff. Instead, the workforce often reports directly to managers or
leaders at the “highest” level. Highly-autonomous employees often thrive in these
environments. The lack of hierarchy motivates people to make decisions, take ownership,
and facilitates problem-solving.

In a network structure , individual freelancers, groups, or associations work together.

They each work as separate functional teams, but may share an overarching entity.
Professional associations often have this type of structure.
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Module-02

Q-04: Personality

An individual's personality is a unique mix of traits that impact how they think, feel, and act in
different scenarios. It's a dynamic and organized collection of characteristics that shape
behaviors, emotions, motivations, and thoughts.

It encompasses consistent patterns of thought, feeling, and behavior that persist across time
and contexts, shaping how an individual interacts with their environment and perceive
themselves and others.

Personality in Organizational Behavior

Personality in organizational behavior refers to the unique traits, behaviors, and characteristics
that individuals exhibit in a work environment. It influences how individuals interact with
others, perceive situations, and make organizational decisions.

Importance of Personality In OB

Personality plays a crucial role in organizational behavior as it affects employee motivation, job
satisfaction, communication patterns, leadership effectiveness, teamwork, and organizational
culture.

Moreover, fostering a positive work environment that values diversity of personalities can
enhance employee engagement and organizational effectiveness.

Definitions of Personality

The concept of personality can be better understood through the following mentioned
definitions:
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According to Gordon Allport, “Personality is the dynamic organisation within the

individual of those psychological systems that determine his unique adjustment to his
environment.”

According to Fred Luthans, “Personality means how a person affects others and how
he understands and views himself as well as pattern of inner and outer measurable
traits and the person-situation interaction.”

Personality Traits Relevant to Organisational Behaviour

Personality traits influencing personality of a person are discussed as follows:

1. Authoritarianism: This concept was developed by a psychologist Adorno during World

War II to measure susceptibility to autocratic, fascistic and anti-democratic appeals. Since
then, this concept has been used to describe human personality which strongly believes
in the legitimacy of formal authority, set rules and regulations. Authoritarian people
generally treat obedience to authority as necessary, view people negatively, stick to the
conventional value systems towards people and work, very rigid and against decision
making based on the feelings and emotions. Such type of people generally prefers
organized and structured work environment governed by rules and regulations. They
prefer autocratic style of leadership, respect the people who are on the higher positions
of organizational hierarchy and expect respect from those who are working under them.
2. Locus of control: Locus of control refers to an individual’s belief that events happening
around are either in one’s own control or determined by some forces out of one’s control.
The former types of individuals are called internals and have internal locus of control. The
latter types of people are externals and have external locus of control. It is an individual’s
generalized belief regarding Internal vs. External control over the situation surrounding
him.

Internals: Internals believe that they are masters of their fate and
whatever is in their lives is due to their own hard work. Internals believe
that they have control over their behaviour and therefore, they are more
active in seeking information and performing better on the jobs.
Internals usually enjoy higher levels of job satisfaction than others.

Externals: Externals are those who believe that whatever is happening in

their lives is determined by their luck or fate or some other outside forces
which are beyond their control. It has been seen that externals tend to
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be frequently absent from their jobs, less satisfied and less involved in
the jobs than the internals.

3) Machiavellianism: The term Machiavellianism was derived from the works of

Nicolo Machiavelli. Machiavellianism is referred to the tendency of an individual to
manipulate others in order to acquire and gain power. Such people are more likely to
be involved into organisational politics.

4) Achievement orientation: It is another personality trait which is very useful to

predict the behaviour of individuals at work. People with high need to achieve tend to
put continuous efforts to do things in better way. Such people strongly believe that
their success or failure is due to their own strengths or weaknesses and their actions.

5) Self-Esteem: Self-esteem refers to the feeling of one’s liking or disliking for oneself
or it can be denoted as degree of self-respect a person has for himself. This trait is
directly related to an individual’s desire for success. People who have high self-esteem
have full confidence in their abilities and tend to undertake challenging and
unconventional tasks. Such people are more satisfied with their jobs, friendlier, more
affectionate and establish sound interpersonal relationships on the jobs.

6) Self-Monitoring: Self-Monitoring is a personality trait which describes a person’s

ability to adjust his or her behaviour to external factors. Individuals with high self-
monitoring trait pay considerable attention to external cues, what is appropriate in
particular situations and behaviour differently in different situations.

7) Risk Taking: Every individual is different from another individual in their willingness
to take risks and chances. This trait exhibits an individual’s propensity to assume or
avoid risk. The degree to which managers are willing to take risks influence their
decision making and how much information they require before making their choice.
High-risk-taking managers make more rapid decisions and use less information in
making their choices than low-risk-taking managers.

8) Type A Personality and type B personality: Individuals can also be categorized into
Type A personality and type B personality on the basis of their general behaviour
pattern. Type A personality describes a person who displays the characteristics like
competitiveness, time urgency, social status, insecurity, aggression, hostility and a
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quest for achievements. Characteristics of Type A personalities are discussed as

follows:

Type A personalities:

(i) Hurried moving, eating and walking.

(ii) Tend to undertake two or more tasks simultaneously;

(iii) Cannot be relaxed and don’t believe in having leisure time

(iv)Believe in evaluating their success in terms of how much they gain from
everything.

Type B Personality:

(i) Never become impatient and never face hurriedness.

(ii) Never discuss achievements with others unless or until situation

demands so.

(iii) More relaxed and Play for fun and relaxation than to win.

9) Self Efficacy: It can be described as an individual’s belief in his own capability of

performing a task. The people who have higher self-efficacy are generally more
confident that they will succeed in a task.

Q-05: Diversity
Diversity is a term that refers to the variety of different perspectives represented
on a team. While diversity is related to race and social justice issues, they are
facets of a larger conversation. The term represents a broad range of
experiences, including gender, sex, socioeconomic background, upbringing,
religion, education, sexual orientation, gender identity, ethnicity, neurodiversity,
and life experience.

Common types of diversity

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The United Nations recognizes over thirty characteristics that represent diversity, but in
truth, there are many more than that. Some are visible and some are not. Still, others are
immutable parts of who we are, while some change many times over the course of our
lives.

Broadly speaking, there are four types of diversity: internal, external, organizationa l, and
worldview.

1. Internal diversity : Internal diversity refers to any trait or characteristic that a

person is born with. These might include sex, race, ethnicity, gender, sexual
orientation, nationality, or physical ability.
2. External diversity : External diversity includes any attribute, experience, or
circumstance that helps to define a person’s identity — but is not something that
they were born with. Examples include socioeconomic status, education, marital
status, religion, appearance, or location. These characteristics are often influenced
by others and may change over time.
3. Organizational diversity: Differences in job function, work experience, seniority,
department, or management level are referred to as organizational diversity. Often,
entire departments or levels of a company can be homogeneous — that is,
everyone looks the same, comes from the same background, or has the same
experience.
4. Worldview diversity: Finally, worldview diversity encompasses a broad range of
beliefs, political affiliations, culture, and travel experiences. Our worldview, or our
perspectives, contributes to an innovative, inclusive work environment that is
forward-focused.

Diversity in the workplace

The definition of diversity in the workplace goes further than having

representation from different races. While it is crucial for any organization to
develop a team with ethnic diversity, focusing on just one characteristic can
quickly begin to seem inauthentic. In fact, it may further isolate members of that
community, especially when that diversity is thought of only as a visible or
superficial identifier.

Truly diverse and inclusive leaders and organizations don’t just have people that
“look like” members of an underrepresented group. They pay attention to — and
value — the differences that we can’t see, like economic background,
immigration status, neurodiversity, and education.

Diversity in the workplace means having a workforce inclusive of different

backgrounds and national origins. It means gender, socioeconomic, and cultural
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diversity — and beyond. It also means that the organization fosters a sense of
belonging that makes everyone feel like they are part of the team.

Benefits of diversity in the workplace

Diversity benefits organizations at all levels. Beyond the moral imperative or a sense of
fairness, the business case for investing in diversity is clear. Studies have shown
that groups of people that are diverse in gender, race, and age perform better, make
better decisions, and experience more profitability.

Here are a few more ways that diversity benefits the workplace:

1. Decreased groupthink at work

Avoiding groupthink is one of the biggest benefits of workplace diversity. Even groups with
the best intentions can fall prey to groupthink.

But a diverse team provides access to a wider range of skill sets and experiences and
different ways of thinking, behaving, and communicating. This facilitates the growth of
new ideas and reduces groupthink.

2. Increased creativity and innovation

According to a study by Josh Bersin and Deloitte, inclusive companies are almost twice as
likely to be considered innovation leaders in their market.

3. Broader range of skills and knowledge

Employees from diverse backgrounds often possess a wide array of skills, knowledge, and
expertise. This diversity of talents allows organizations to tap into a broader range of
capabilities, enhancing their ability to adapt, learn, and excel in different areas.

4. Improved decision-making

When teams consist of diverse individuals, decision-making processes are enriched.

Diverse perspectives enable a more comprehensive analysis of problems and a
consideration of different viewpoints. This can lead to better-informed decisions and
minimize the potential for groupthink.

5. Enhanced problem-solving

Diverse teams can effectively tackle complex problems. Different backgrounds and
experiences offer alternative approaches to problem-solving, resulting in more robust and
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effective solutions. Diverse perspectives challenge assumptions and encourage critical

thinking.

6. Expanded market reach

A diverse workforce can better understand and cater to diverse customer bases. When
employees reflect the diversity of customers, they can offer insights into different cultural
preferences, needs, and expectations, leading to improved products, services, and
customer experiences.

7. Increased employee engagement and retention

Inclusive workplaces that value diversity foster a sense of belonging and create an
environment where employees feel respected and valued for their unique contributions.
This inclusivity boosts employee morale, satisfaction, and engagement, ultimately
increasing retention rates and reducing turnover.

8. Enhanced employer brand reputation

Organizations that prioritize diversity has a positive reputation, both internally and
externally. They become more appealing to potential employees who seek inclusive work
environments, and customers often prefer to support companies that demonstrate a
commitment to diversity and equality.

9. Global perspective and cultural competence

Diverse workplaces provide exposure to different cultures, languages, customs, and

perspectives. This exposure nurtures cultural competence, expanding employees'
understanding of global markets and facilitating collaboration in an increasingly
interconnected world.

10. Improved financial performance

A large study of European firms found that those with a larger share of women in senior
positions have significantly higher financial performance, especially in high-tech and other
sectors where critical thinking, creativity, and knowledge work matter.

Q-06: Emotions

Emotions are experienced in connection to the completion of work events which in turn
influences attitudes like job satisfaction, organizational commitment, etc.
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Emotions are powerful forces within us that reflect our response to the world around us. They
are feelings and complex reactions involving our minds, bodies, and spirits.

Role of Emotions in Organizational Behavior

Several key roles emotions play, as mentioned below.

i. Influencing Communication
ii. Guiding Decision-Making
iii. Creating a Ripple Effect
iv. Promoting Emotional Intelligence
v. Providing Emotional Support

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Types of Emotions in Organizational Behavior

The concept of 'emotions in organizational behaviour' may seem tricky, but it's rather
straightforward. It focuses on how different types of emotions can impact how people interact,
make decisions, and ultimately shape the atmosphere in a workplace. Now, let's dive into some
common emotions found in an organizational setting.

Joy: This is a positive emotion from experiences of success, achievement, or general happiness.
In a workplace, joy can arise from completing a project, receiving praise from a supervisor, or
having a friendly conversation with a colleague. Joyful employees are often more motivated
and productive.

Anger: This is a strong emotion that can arise from feelings of frustration, injustice, or conflict.
An organization's anger can be triggered by unfair treatment, conflicts with colleagues, or
unmet expectations. However, if managed correctly, it can lead to constructive changes.

Fear: This emotion often stems from uncertainty or perceived danger. In a workplace, fear can
come from worrying about job security, the threat of layoffs, or making a mistake on a major
project. Organizations need to address these fears to maintain a supportive environment.

Sadness: This emotion can result from disappointment, loss, or general dissatisfaction. In the
context of emotions in organizational behaviour, sadness can occur due to negative
performance feedback, not getting a promotion or the departure of a favourite colleague.

Surprise: This can be a positive or negative emotion, depending on the unexpected event.
Surprise can come from unexpected news, like a sudden change in a project's deadline or an
unanticipated bonus.
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Disgust: This emotion can arise in a workplace from unethical practices, unhygienic conditions,
or disrespectful behaviour. Disgust, while negative, can lead to necessary changes if
appropriately addressed.

Q-07: Values

Values can be described as the basic convictions that guide an individual that a particular mode
of conduct or final outcome is personally or socially acceptable or not. Once values are
internalized, they become standard for guiding the actions or decision making of an individual.
Values contain an element of judgement which influences an individual’s understanding about
what is good or bad, desirable or undesirable. Values are inherited as well as learnt through the
process of socialization. The work-related values such as autonomy, comfort, achievement and
status seem to be inherited. Certain individual values are also learnt in different stages of life as
a result of interaction with relevant persons in our life like our parents, friends, teachers and
colleagues etc. Values are comprised of both content and intensity attributes. Content attributes
define that a mode of conduct or final outcome is important and the intensity attribute define
how much important it is for an individual.

Value can be defined as a, “Concept of the desirable, an internalized criterion or standard of

evaluation a person possesses. Such concepts and standards are relatively few and determine or
guide an individual’s evaluations of the many objects encountered in the daily life.”

According to Milton Rockeach, “Values are global beliefs that guide actions and judgements
across a variety of situations.”

Characteristics of Values

Values generally contain a tinge of principles of morality which direct an individual about what is
right, good and desirable. Characteristics of values are given as follows:

a) Values provide standards of proficiency and integrity.

b) Values are fewer in number than attitudes.
c) Values are most central to the core of a person.
d) Values usually go beyond the specific objects, situations, or persons.
e) Values are relatively permanent and resistant to change.
f) When values are ranked in terms of their importance, it results into the value
system of that person.
g) The value system of an individual provides a hierarchical framework which indicates
the relative importance we assign o different values such as freedom, self-respect,
honesty, and so on.
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Importance of Values

Importance of values can be understood from the following points:

a) Values provide the basic framework for understanding attitudes and motivation of an
individual.
b) Value system of an individual influences the perception about whatever is happening
around in the environment.
c) Values symbolize the explanation of right and wrong.
d) Value system influences an individual’s decision making and choice of solution to
various problems.
e) Values also play social function in an organisation. Those values which are derived from
common experiences help in uniting the societies and groups together.
f) Values influence behaviour of an individual and therefore provide the criteria for
evaluating the behaviour of others.
g) In order to meet the challenge of reconstructing the established work values all over the
world, understanding the values becomes necessary for every manager in the
organisation.

Types of Values

▪ Milton Rokeach Classification

Milton Rokeach conducted a survey which is popularly known as Rokeach value survey (RVS) to
classify the values. RVS is comprised of two types of value sets, each containing 18 individual
value items. One set is called Terminal values and another is called Instrumental Values.

a) Terminal Values: Terminal values represent the desirable outcomes. These represent
the ultimate goals that a person would strive to achieve in his lifetime.

b) Instrumental Values: Instrumental values refer to the preferred modes of

behaviour or means to achieve desirable ends. These are the medium for attaining
terminal values. For example, the instrumental value which can help in achieving the
terminal value of ‘true friendship’ is being ‘responsible’. Similarly, the instrumental
value ‘independent’ can help in achieving the terminal value ‘freedom’.

▪ Allport,Vernon and Lindzey classification

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G.W Allport, P.E. Vernon and G. Lindzey classified values into six major categories given
as below:

a) Theoretical values
b) Economic values
c) Aesthetic values
d) Social values
e) Political values
f) Religious values

Organisational values: Organisations have certain core values that are so deeply ingrained that
they guide company’s actions and practices to establish organisational culture. Good firms
practice distinct and identifiable set of values that include management’s belief about service
quality, innovation, importance of human resources, detail of information, openness of
communication etc. Four types of common organisational values are:

i. Power, elitism and reward.

ii. Effectiveness, efficiency and economy. Fairness, teamwork and law and order.
iii. Defence, competitiveness and opportunism.
iv. Co-workers (availability of good colleagues) Security (continuity of job)
v. Academic (relationship of work and academics)

Values and OB

It has been already discussed in the above paragraphs that values influence behaviour of an
individual. Further influence of values on the behaviour of an individual in an organizational
setting can be specifically understood from following points:

a) An individual’s perception about the problems faced by him is influenced by his value
system. As a result, the decisions taken by him to solve the problems also reflects his
values.
b) Values also affect interpersonal relationships in the organization. The way employees look
at each other, cooperate with each other and compete with each other depends upon
their values.
c) Values guide an individual about what is ethical and unethical. Therefore, the degree to
which an employee remains ethical or indulge in unethical practices will also depend on
his values.
d) The extent to which an individual cope up with the organization’s pressures and
contribute in the achievement of organizational goals is determined by his value system.
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Q-08: Perception

Perception in organizational behaviour refers to the process through which individuals

interpret and make sense of their environment, including people, events, and situations within
the workplace.

It involves selecting, organizing, and interpreting sensory information to form mental

representations or perceptions.

Importance of Perception In OB

Importance of perception in organizational behaviour for several reasons:

Decision-Making: Perceptions influence decision-making processes by shaping how

individuals evaluate risks, opportunities, and alternatives. Biases in perception, such as
confirmation bias or stereotyping, can lead to suboptimal decisions and judgment errors.

Communication: Effective communication relies on accurate perception and interpretation

of verbal and nonverbal cues. Misinterpretations or misunderstandings stemming from
perceptual biases can hinder communication effectiveness and lead to conflicts or breakdowns
in teamwork.

Leadership: Perceptions of leaders' behaviour, traits, and effectiveness significantly impact

employee attitudes, trust, and commitment. Effective leaders are mindful of how their actions
are perceived by employees and strive to cultivate positive perceptions through transparent
communication, role modelling, and interpersonal skills.
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Organizational Culture: Perceptions shape the collective beliefs, values, and norms that
constitute organizational culture. Positive perceptions of organizational fairness,
supportiveness, and inclusivity contribute to employee morale, engagement, and retention.

Conflict Resolution: Perceptions play a key role in conflict. Recognizing different perceptions
can help in resolving disputes and fostering a harmonious work environment.

Job Satisfaction: Positive perceptions about the work environment, leadership, and team
dynamics contribute to higher job satisfaction and employee retention.

Q-09: Attribution

Attribution theory is the process of explaining the world around us. We may use this every day
to explain things, such as the causes of certain behaviours or outcomes. Knowing this theory
and how it applies to aspects of our daily lives can help you identify our own biases towards
certain people and situations, and those of other people.
Attribution theory is how we attribute feelings and intentions to people to understand their
behaviour. There are two main of theories, dispositional and situational attribution.

Dispositional attribution
Dispositional attribution puts the cause of someone's behaviour down to internal traits. These
might include personality, core beliefs, and motivations. By attempting to explain intentional
behaviour, we tend to look internally and analyze the personality of an individual. By
overstating the internal causes of someone's behaviour and ignoring the external causes, we
commit something called a fundamental attribution error. Some further examples of
dispositional attribution are:
a) Your colleague receives a promotion, and you attribute this to their dedication to the
role.
b) A person studies at medical school, and you attribute this to their caregiving personality.
c) A person is glaring at you on the bus, and you attribute this to them having a hostile
personality.

Situational attribution
Situational attribution looks less towards personality and more towards situations and events.
We can think of this as a more external attribution type. This type of attribution is more
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common when explaining our behaviour. We look outwards and blame circumstances outside
of ourselves. This is because it is often easier than self-analyzing. Some examples of situational
attribution include:
a) Being late for work and blaming the weather or public transport.
b) Failing an exam and blaming your teacher for not preparing you.
c) Spilling a drink on the carpet and attributing it to the unevenness of the carpet.

Q-10: 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 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. An individual’s behavior in an organization is directly or indirectly affected by
learning.

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.
• 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.
• Environment − We learn from our surroundings, we learn from the people around us.
They are of two types of environment – internal and external.
• 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.
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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

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.

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.

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.
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Q-11: Motivation

Motivation in organizational behaviour (OB) refers to the internal and external factors that
kickstart, direct, and uphold an individual's drive and determination to reach particular
objectives.

It encompasses the psychological processes that arouse and direct goal-oriented behaviour,
influencing how employees perform their tasks, interact with colleagues, and commit to
organizational objectives.

Key Aspects of Motivation In OB

Let us study the key aspects of motivation in organizational behaviour:

Initiation: Refers to what starts a person's behaviour. In an organizational context, this could
be the beginning of a task, project, or any work-related activity.

Guidance: Involves the direction that behavior takes. Motivated employees are more likely to
align their efforts with organizational goals and standards.

Sustainability: Concerns the persistence of behaviour over time. Motivation determines how
long an employee can maintain their efforts towards achieving their goals despite challenges
and obstacles.

Importance of Motivation In OB

the importance and benefits of motivation in organizational behaviour:

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• Performance: Motivated employees tend to perform better, showing higher productivity and
efficiency.

• Engagement: High levels of motivation lead to increased engagement and involvement in

work activities, promoting a proactive and enthusiastic work environment.

• Job Satisfaction: Employees who feel motivated tend to be happier in their roles, resulting in
reduced turnover and increased staff loyalty.

• Innovation: Motivated employees are likelier to contribute innovative ideas and solutions,
driving organizational growth and competitiveness.

• Team Dynamics: Motivation influences how employees interact and collaborate, fostering
teamwork and a positive organizational culture.

Types of Motivation In OB

Types of motivation in organizational behaviour:

i. Intrinsic Motivation

ii. Extrinsic Motivation

Key Theories of Motivation in Organizational Behaviour

Important theories of motivation:

Need-Based Theories

Need-based theories focus on the psychological needs that drive individuals to perform certain
actions. These theories emphasize the importance of fulfilling basic needs before advancing to
higher-level ones.
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Process-Based Theories

On the other hand, process-based theories concentrate on how specific factors influence an
individual's motivation. The Equity Theory, Expectancy Theory, and Goal-Setting Theory fall
under this category.

Unlike need-based theories that revolve around fulfilling needs, process-based theories delve
into the cognitive processes involved in motivating behaviour.

Herzberg's Two-Factor Theory

It distinguishes between hygiene factors and motivators. According to this theory, satisfaction
and dissatisfaction at work are influenced by separate factors.

Self-Determination Theory

The self-determination theory, created by Edward L. Deci and Richard M. Ryan in the 1980s,
emphasizes how autonomy can enhance internal motivation. It identifies three main
psychological needs: independence, competence, and social relationships. Meeting these
needs can lead to increased intrinsic motivation among employees.

Enhance Motivation In OB

Enhancing motivation in organizational behaviour:

Promotion Opportunities: Rewarding employees with promotions for their hard work and
dedication is key to keeping them motivated. When workers know that they can advance in
their careers based on how well they perform, they tend to work harder and strive for success.

Participation in Decision-Making: Encouraging participation in decision-making processes

empowers employees and gives them a sense of ownership.
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Benefits & Outcomes: Linking performance to tangible outcomes such as rewards or

recognition reinforces the belief that efforts will result in desirable consequences.

Humane Orientation: A humane orientation in leadership emphasizes empathy and

understanding towards employees' needs and concerns. This approach creates a supportive
environment where individuals feel valued, thereby increasing their motivation levels.

Future Growth Opportunities: Highlighting potential future growth opportunities based on

employees' abilities and contributions instils a sense of purpose.

Q-12: Organizational Performance

An organization refers to an organized group of people working together with a specific
purpose. “Performance” refers to the action of performing a specific task or set of tasks and it’s
measured on how successfully an individual or organized group performs such tasks.

So, Organizational Performance refers to the analysis of an organization’s performance against

its objectives and goals. Or comparing the intended results vs the actual results.

An Organizational Performance definition according to Wikipedia says that: “Organizational

performance comprises the actual output or results of an organization as measured against its
intended outputs (or goals and objectives).”

Organization performance could be breaks down into three operational terms: financial or
economic performance, operational performance, and human capital performance.

• The Economic Performance of the organization looks at the financial and market
outcomes which include topics like profits, sales, return on investment, and other
financial metrics.
• The Operational Performance of the organization focuses on observable indices like
customer satisfaction and loyalty, the firm social capital, and competitive edge derived
from capabilities and resources.
• The Human Capital Performance of the organization which covers topics around
Employee Engagement, Culture, development and internal promotion opportunities,
etc.
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The Three Outcome Areas of Organizational Performance

To successfully manage organizational performance, you must understand that organizational
improvement outcomes are focused on three main areas:

- Financial Performance: This area focuses on a company’s operations and policies regarding
monetary terms. In other words, in terms of value in dollars, euros, pounds, and other
currencies.

- Product Market Performance: Market performance measures how good a product or

service does within the marketplace.

- Shareholder Value: This area looks at how much a company enriches its shareholders. Many
say this is the ultimate organizational performance measure. Shareholder value may also refer
to a company’s market capitalization.

Factors of Organizational Performance

Factors that determine the organization’s activities, goals, and work structure, can be grouped
into:

• External factors: These factors are those surrounding the organization and are not
under its control, but still affect its development, performance, and structure. They
include:
i. Economic factors
ii. Socio-economic factors
iii. Political-administrative factors.

• Internal factors: These are those factors within the organization, characteristics such
as:

i. Purpose
ii. Mission
iii. Values
iv. Instruments

• Individual choice factors: Teams or individual decisions about expected costs and
benefits.

Q-13: organizational politics

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The term ‘organizational politics’, also known as workplace politics or office politics, refers to
the agenda of each employee within a company and the activities they engage in to acquire,
increase, and wield power and resources to gain a desired outcome.

Organizational politics is present in most organizations. Every business has a hierarchy, and
with this hierarchy comes an uneven distribution of power. Certain employees are more likely
to pursue this power than others, which is considered political behavior in the workplace.

All employees experience the impact of organizational politics throughout their careers,
whether positive or negative. For some, it means engaging in office gossip or acting as part of a
clique, while for others, it means climbing the career ladder and being as productive and
efficient as possible at work.

Objectives of organizational politics

Objectives of organizational politics include:

1) Gaining power
2) Boosting productivity
3) Gaining recognition
4) Resolving disputes
5) Promoting personal objectives
6) Protecting self-interest
7) Earning money and income
8) Developing power contacts.

Types of organizational politics

Organizational politics in the workplace can have many forms, ranging from subtle maneuvers

to overt power plays. These actions can significantly impact the culture, effectiveness, and

morale of an organization. Understanding the different types of organizational politics can help

professionals navigate and manage workplace dynamics more effectively.

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i. Self-promotion
ii. Office politics
iii. Factionalism
iv. Gatekeeping
v. Territorialism

The impact of organizational politics

Studies have shown that employees with political skills are better at gaining more power and

managing stress, are more productive, and have a greater impact on organizational goals. Plus,

as a company grows, organizational politics may be the reason it survives.

However, unchecked organizational politics can destroy a company when left to spiral out of

control. Here are some of the common negative impacts on employees:

• Increased stress from fear of the unknown or losing their job

• Decrease in concentration and productivity as they are distracted by politics

• Increase in cynicism, which leads to low morale and job satisfaction

• High employee turnover, which can lead to a lack of qualified employees and a

knowledge and skills gap

• Miscommunication as neither employees nor managers fully know what’s going on

• Resentment and lack of organizational trust.