6101-Organizational Behaviour [MBAFT-S1-DU] Cover Sep24.

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MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

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Prof. V.K. Shrotryia
Dr. Anuja Mathur
Content Writers
Dr. Reema Aggarwal, Dr. Anupreet Kaur Mokha,
Dr. Dimpy Handa,
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Dr. Jyotika Bahl

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Mr. Deekshant Awasthi

© Department of Distance and Continuing Education

ISBN: 978-93-95774-17-8
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Published by:
Department of Distance and Continuing Education
Campus of Open Learning, School of Open Learning,
University of Delhi, Delhi-110007

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

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Dr. Reema Aggarwal

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© Department of Distance & Continuing Education, Campus of Open Learning,

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 Contents

PAGE

Lesson 1 : Introduction to Organizational Behaviour 1-25

h i
Lesson 2 : Personality

e l 26-52

Lesson 3 : Learning, Attitudes, Values and Emotions

D 53-91

Lesson 4 : Interpersonal Relationship of 92-123

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Lesson 5 : Motivation at Work
r s 124-167

v e
i
Lesson 6 : Leadership 168-205

Lesson 7 : Work Teams and Groups

U n 206-231

L ,
O
Lesson 8 : Decision Making 232-261

/ S
L
Lesson 9 : Stress and Well Being at Work 262-281

/ CO
Lesson 10 : Organization Structure and Design 282-305

Glossary
C E 307-311

D D
©

PAGE i
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
L E S S O N

1
Introduction to
Organizational Behaviour
Dr. Reema Aggarwal
Assistant Professor
School of Open Learning

h i
University of Delhi

e l
Email-Id: [email protected]

D
of
STRUCTURE

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1.1 Learning Objectives
1.2 Introduction
s i
1.3 Meaning of Organization
e r
1.4 Manager and Interpersonal Skills
i v
1.5 What Do Managers Do?
U n
1.6 Managerial Skills
L ,
O
1.7 Managerial Activities: Effective Versus Successful Manager
S
/
1.8 Organizational Behaviour (OB)
L
O
1.9 Major Disciplines that Contribute to the Domain of Organizational Behaviour

C
/ Opportunities in Organizational Behaviour
1.10 Level of Organizational Behaviour

E
1.11 Challenges and
C
D
1.12 Managerial Implication

D
1.13 Summary
1.14©Answers to In-Text Questions
1.15 Self-Assessment Questions
1.16 References
1.17 Suggested Readings

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes
1.1 Learning Objectives
At the end of this lesson, the student should be able to:
u Define organizational behaviour.
u Explain the importance of manager in an organization.
u Develop understanding of the functions of a manager and managerial
roles.
u

h i
Explain the disciplines that contribute to the domain of organizational
behaviour.
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u Explain the level of the organization behaviour.
D
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u Understand various challenges and opportunities in applying organisa-
tional behaviour concepts.

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1.2 Introduction
r s
v e
i
Organizational Behaviour (OB) is the domain that deals with understanding

U n
people’s behaviour within an organization. The discipline deals with the
individual behaviour, group behaviour and behaviour of employees at

L ,
the organizational level. In addition, the field investigates the impact of
various cognitive, affective and behavioural aspects of human resources

S O
on the effectiveness of an organization (like what motivates employees,

L /
what makes the manager a good leader, how to manage group dynamics,

O
etc.). Organizational behaviour is crucial in facilitating managers in dealing

C
with various organisational challenges and opportunities.
/
C E “Organizational behaviour is a field of study that investigates the impact
that individuals, groups and structure have on behaviours within the

D organizations to apply such knowledge towards improving an organization’s

©D
effectiveness.”- Stephen P. Robbins.
Before exploring the components of organizational behaviour or the
levels of analysis in organizational behaviour (Individual, Group, and
Organizational level), it is crucial to understand what we mean by these
three levels of analysis. How has the domain of Organization behaviour
formed? Furthermore, who are managers, and what functions and roles do
they perform in an organization? Finally, it is also essential to understand
managers’ present-day challenges and opportunities in organizational
behaviour.
2 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

1.3 Meaning of Organization Notes

Organisation is a social unit that is structured and managed to pursue

collective goals. All organizations have management “Structure” that
determines relationships between different activities and the members;
assigns roles, responsibilities, and authority among members to carry out
various tasks. Organizations are open systems--they affect and are affected
by their environment. They are formed to achieve some “Purpose”. An
organisation’s purpose is stated through its vision, mission, goal, and
h i
specific objectives. To fulfil the underlying goals, organizations need
“People”. People form part of structures that allow them to collectively
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D
of
work and accomplish the set Purpose (Refer to the last lesson to learn
more about various types of structures). The purpose or structure differs

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from organization to organization.

s i
e r
i v
U n
Purpose
L
Structure , People

S O
/
Figure 1.1: Features of an Organization

L
O
1.4 Manager and Interpersonal Skills
C
E /
Managers are the coordinators responsible for managing social units; these
C
units help the organization achieve its goals. For managing people, a manager
D
©D
needs technical, human, and conceptual skills (Refer to 1.6. section of this
lesson for more details). Earlier more focus was on technical skills and
less on interpersonal skills, but eventually, interpersonal or people skills
have become crucial; at times, they are preferred over technical skills.
Interpersonal skills or soft skills help a manager connect with others at
work. Managers are responsible for getting the job done through people.
Their main task is not to complete the task directly. Therefore, it becomes
essential for a manager to understand people’s behaviour and connect
with them. OB principles provide insights that help a manager develop

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes their interpersonal skills, which could yield various organizational-level

outcomes (like employee satisfaction with their respective jobs, employee
commitment to organization, employee engagement, stress levels, etc.).
Managers with high interpersonal skills can attract high-performing
employees and are also able to improve employee retention. Recently,
the organisations have been impacted by the “Great Resignation”, a
phenomenon that is used to describe situations in which huge numbers
of employees have quit organisations towards the end of the Covid-19
pandemic. Also known as Big Quit or Great Reshuffle, it has made
h i
e l
retaining employees critical to an organisation, as a process of hiring
them is both costly and time consuming.
D
1.5 What Do Managers Do? of
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s
Managers help an organization accomplish its objectives through people;

r
effectively and efficiently. “Effectiveness” means completing a given task
e
v
within the planned time frame. The manager should focus on “Doing The
i
n
Right Things” to achieve goals on time. “Efficiency” means achieving

, U
goals with minimum resources. To achieve efficiency, managers should
focus on “Doing Things Right” to minimize wastage of resources. Both
L
Effectiveness and Efficiency are essential to accomplish organizational
O
S
goals.

L /
C O
E /
D C
©D Figure 1.2: Efficiency and Effectiveness
Henri Fayol and Henry Mintzberg gave a detailed description of various
functions and roles performed by a manager. Functions of management
are part of the classical approach provided by Henri Fayol (French
Industrialist). Later in the 1960s, Henry Mintzberg divided the diverse
responsibilities of a manager into ten roles performed by the manager.

4 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

1.5.1 Management Functions Notes

Henri Fayol identified five management functions: Planning, organizing,

commanding, coordinating, and controlling. The manager performs various
tasks of similar nature within each function. The detailed description of
all five Functions of Management is as follows—
Planning: The primary purpose of any organization is to achieve specific
goals. The manager needs to define these goals in line with the primary
purpose and vision of the organization. It is a complete process where
h i
the manager explores various alternatives, builds a strategy for the
e l
D
organization, and sets employee objectives. Later these goals become a

of
yardstick against which outcomes are measured. Fayol called this role
as “Planning”.
Organizing: The manager is responsible for building the structures in
i ty
s
the organization. The organizing function includes identifying various
r
e
organisational tasks, grouping, and classifying similar-nature tasks and
designing reporting relationships.
i v
U n
Commanding: The manager is responsible for communicating planned
strategies, goals, or targets. In line with organizational goals and practices,

L ,
a manager should direct and lead subordinates. It is associated with

O
communicating clear instructions to employees in line with the company’s

S
/
mission and vision. In addition, a manager should be able to inspire and

O L
motivate employees to achieve the goals.
Coordination: Coordination is one of the crucial functions of management.

/ C
Setting goals, creating structures, and giving instructions to employees
E
will fail if all activities are not appropriately coordinated. It is important
C
D
to harmonize all activities in an organization. Managers should ensure that

©D
various activities complement each other. Effective coordination reduces
conflicts and stimulates employees’ motivation.
Controlling: The manager sets standards/objectives at the planning stage.
However, the planning stage will remain incomplete unless the manager
compares the standards with actual performance. Therefore, a manager
should periodically compare the targets with the actual performance and
take corrective actions in case of any gap.

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes The five functions identified by Henri Fayol provide an overview of the
main functions of management; it may not cover all the complexities
that a manager is expected to deal with in their day-to-day functioning.

Planning

h i
Controlling Organizing
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of
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Coordinating
v e Commanding

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Figure 1.3: Management Functions by Henri Fayol

O L
1.5.2 Managerial Roles
/ S
O L
The role of managers in an organization is multifold. Henry Mintzberg
defined Managerial Roles in 1960. Based on observation, Mintzberg

/ C
segregated all the roles of a manager into three broad categories, namely,

C E
Interpersonal, Informational, and Decisional. He stated that these roles are
highly interrelated and reflect a set of behaviours followed by managers

D D in an organization. The detailed description of all three categories of

©
Managerial Roles is as follows—
Interpersonal Role: Interpersonal role of a manager includes three subsets
within it. First is “Figurehead”, a symbolic role where the manager works
on routine level work of social and legal nature. This role inspires others
in the organization. Secondly, the manager acts as a “leader” responsible
for hiring, motivating, and directing employees. The third managerial role
within interpersonal is called “Liaison”; under this role; he builds his
network. He gathers the required information through networking with

6 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

people internal or external to the organization. Such contacts also provide Notes
a manager with favours.
Informational Role: The informational role is associated with a process
where the manager gathers required information, transfers it into the
organization, and transmits it to the outside organization. This role
includes three subsets. The first subset is known as “Monitor”; under
this role; the manager collects information through various sources and
analyses the internal and external environment. Later the manager transmits
relevant information to other members of the organization; this role also
h i
defines the second subset known as “Disseminator”. Finally, under the
e l
third subset, the manager as a “spokesperson” transmits the information
D
of
outside the organisation.
Decisional Role: The manager is not only a symbolic head who

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manages information or directs employees but also a decision-maker. As

s
an “Entrepreneur” manager searches for new opportunities and brings
r
e
new assignments/projects to the organization, a manager also initiates

v
n i
change. The manager is responsible for “handling disturbance” in the
organization. For example, if there is some roadblock in the organization’s

U
functioning; the manager is responsible for handling it. The manager also
,
L
acts as a “Negotiator”, where he represents the organization in all the

O
major negotiations. Lastly, as a “resource allocator,” he is responsible

/ S
for procuring and allocating resources.
Interpersonal
O L
Informational Decisional

C
Role Role
/
Role

CE
Disturbance
Figurehead Monitor

D
Handler

© D Leader Disseminator
Resource
allocator
Negotiator
Liaison Spokesperson
Entrepreneur

Figure 1.4: Mintzberg’s Managerial Roles

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Emerging Managerial Roles

What do managers do? Or what a successful manager is supposed to do?
If asked by a management student, the answer will be either associated
with five basic functions (namely, planning, organizing, staffing, and
controlling) as defined by Henri Fayol or will be associated with ten
managerial roles as defined by Henry Mintzberg.
But in the current scenario, in addition to these functions and roles, a
manager should change and get away with the traditional approach while
h i
e l
dealing with the employees. With growing competition and technological
advancement, a manager must change some commonly followed practices
D
of
like limiting his role to problem-solver, micromanagement, giving
direction to employees, etc. To meet the contemporary challenges in

ty
the workplace the manager must shift from—

i
1. Directive to Instructive: The role of the supervisor has considerably
s
r
changed with the advent of technology. Robots driven by AI
e
v
(Artificial Intelligence) have already replaced manual & repetitive

n i
work in the majority of industries. AI could impact the present

U
roles of the employees, but it won’t be able to exclude the need

L ,
for human resources. New roles are emerging and replacing the
old ones. The present-day manager needs to explore best practices

O
to shape the impact of AI on the industry.
S
L /
2. Restrictive to Expansive: Present-day competitive business

O
environment needs employees to think and learn quick decision-

/ Cmaking. Centralization and micromanagement by managers could

E
restrict employees in the way they think. Therefore, it is important

D C for managers to delegate and motivate their employees to analyze

the market, and take decisions based on their analysis.

©D
3. Exclusive and Inclusive: Managers should include employees in the
decision-making process especially while dealing with some new
situation (Like- WFH (Work from Home); Virtual organizations,
etc. during Covid-19). This adds diversity and helps in identifying
various perspectives around the problem. It also makes the “process
of change” easier in the organization.
4. Repetitive to Innovation: There is no best time for innovation,
rather it is an ongoing process. Innovation makes an organization

8 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

successful, and a successful organization needs innovation to remain Notes

competitive.
5. Problem solver to Challenger: The role of the present-day manager
is not limited to problem solver. He needs to be proactive in
understanding, analyzing, and solving upcoming challenges in the
industry.
6. Employer to Entrepreneur: Present-day manager needs to think
like an entrepreneur who facilitates development and helps others
h i
in growth.
e l
D
For more details on how roles of managers are changing Read

of
Pistrui, J., & Dimov, D. (2018). The role of a manager has to change
in 5 key ways. Harvard Business Review.

i ty
IN-TEXT QUESTIONS
r s
1. Efficiency means achieving goals with _____.
v e
i
2. Functions of management are part of the classical approach,
n
U
given by_____.

L ,
3. According to Mintzberg, the role of transmitting the information
outside the organisation, is termed as ______.

S O
4. ______is a symbolic role, where manager inspires the employees.

L /
5. The ______ stage will remain incomplete unless manager will

O
compare the standards formed at ______ stage with actual
C
performance.

E /
D C
1.6 Managerial Skills

©D
According to Robert L. Katz, a manager needs the following skills to
accomplish their goals—

1.6.1 Technical Skills

Technical skills refer to the “Employees’ ability to apply specialized
knowledge or expertise while performing the given task”; Technical skills
mean knowledge and ability to accomplish the given task.

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes For example, for a manager at ABC Ltd. (an audit firm), technical skills
could include knowledge about the fundamentals of accounting, Indian
Accounting Standard rules, and procedure for conducting an audit.
Education/qualification are essential for technical skills (like a chartered
accountant degree), along with knowledge gained through schooling/
college and/or on the job experience.

1.6.2 Human Skills

h i
l
The primary responsibility of managers is to communicate and coordinate
e
D
the work between employees. A manager should be able motivate and

of
lead employees to accomplish the organisation’s purpose. He should also
be able to resolve conflicts in the organisation.

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For example, an audit manager with a chartered accountant degree might

s i
possess sound technical knowledge about the audit process. Still, he won’t

r
be able to manage a team or accomplish goals unless he has good human
e
v
skills (like- the ability to communicate, listen, and motivate; the ability to
i
n
create coordination between team and client to achieve the targets; etc.)

,
1.6.3 Conceptual Skills U
O L
S
The organisational environment today is highly Volatile, Uncertain,

L /
Complex, and Ambiguous (VUCA). In such an environment, making a

O
decision based on only past knowledge is not possible. Therefore, to work

C
in the present-day environment, a manager should have the mental ability

E /
to deal with complex problems, through “Conceptual skill”.

D C For example, To handle diverse client-specific queries or any challenge

posed by the external environment (like the pandemic), a manager needs

©D
to analyze the problem, generate and choose the best alternative.

1.7 Managerial Activities: Effective Versus Successful

Manager
Fred Luthans and his associates found that all managers could be engaged
in four activities, namely—

10 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

u Traditional Management: This includes planning, organizing, making Notes

decisions, etc.
u Communication: This includes communicating information, handling
paperwork, and exchanging information.
u Human Resource Management: This includes managing people
using human skills (like motivation, training, handling conflicts,
etc.).
u Networking: Building a social network and interacting with external
h i
publics.
e l
D
Luthans and his associates conducted an empirical study based on a

of
sample of 450 employees. Their study found that a successful manager
spends 48% of their time networking and hardly 13% of their time in

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traditional management. In contrast, an effective manager spends 44%
of their time communicating and barely 11% of their time is spent on
s i
networking. An average manager spends 19%-32% of their time in all
e r
v
MBA
activities. In a nutshell, networking is an important activity that makes
a manager successful.
n i
, U
O L
/ S
O L
/ C
C E
D
©D
Figure 1.5:1.5Allocation
Figure ofActivities
Allocation of Activities by Time
by Time
(Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real
Source: Based on F. Luthans, R. M. Hodgetts, and S. A. Rosenkrantz, Real Managers
ManagersMA:
(Cambridge, (Cambridge, MA: Ballinger, 1988)).
Ballinger, 1988).

1.8 ORgANIzATIONAL BEhAvIOR

The definition of OB suggests that it is a “field of study, " meaning it is a distinct area with a PAGE 11
common body ©of Department of Distance
knowledge. Further, & Continuing
the field Education,individuals
of study investigates Campus of or Open
groupsLearning,
to
apply this knowledge to increaseSchool of Open Learning,
organizational University
effectiveness. of Delhi
The study focuses on the
behaviour of employees at the group, individual or organizational levels that impact the
performance of an organization. The study also focuses on various interpersonal skills that
could help to deal with employees effectively. Following are some critical areas in OB-

● Motivation
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes
1.8 Organizational Behaviour (OB)
Organisational behaviour is that part of management which deals with
people. It is, thus, a behavioural approach to management. OB is a
behavioural science that deals with what people do in organisations and
how their behaviour affects the performance of the organisation. It develops
behavioural theories about how and why people behave in specific ways.
Same people do not behave in the same way in same situations. Their

h i
behaviour differs according to situations both, at the work place, and off

e l
the work place. Their behaviour cannot be predicted with exactness, and,

D
therefore, predictions made to assess their behaviour may fail in certain

of
situations. However, attempts are made by behavioural scientists to know
the factors that affect human behaviour so that theories can be built around

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areas such as motivation, leadership, communication, change, conflict

s i
management, group dynamics, learning, attitude, perception, personality,

e r
stress management, etc. These theories help to understand, predict and

v
influence behaviour of people as individuals and groups.
i
U n
OB aims to improve organisational effectiveness by knowing the impact
that individuals, groups and organisation structure have on behaviour

L ,
within organisations. It is, thus study of human behaviour in organisations.

O
That will improve effectiveness of organisations.

/ S
The purpose of studying human behaviour is to relate it to job situations

O L
such as nature of work, employee turnover and absenteeism, performance
at work, productivity, etc. so that people can act more effectively to

/ C
achieve organisational objectives. OB studies the cause and effect of

C Ehuman behaviour, along with organisation structure to meet individual

and organisational goals.
D
©D
Thus, organisational behaviour aims at making managers effective by:
u Describing Behaviour: They describe how people behave in different
conditions.
u Understanding Behaviour: They understand why people behave
differently in different situations.
u Predicting Behaviour: They predict behaviour of employees; whether
they contribute towards organisational goals or not.

12 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

u Controlling Behaviour: They control human behaviour at work Notes

through team efforts, skill development etc.

1.9 Major Disciplines that Contribute to the Domain of

Organizational Behaviour

OB is an applied behavioural science. It integrates knowledge from

various disciplines like psychology, social psychology, anthropology,
sociology, etc.
h i
Psychology: Psychology provides knowledge about factors that determine
e l
human behaviour. It includes various sub-disciplines like clinical
D
of
psychology, industrial psychology, etc. Psychology has contributed to
understanding the individual behaviour of employees in an organization.
Some key areas in the domain of OB that are influenced by the
i ty
r s
knowledge of psychology are motivation, perception, personality, work
stress, employee happiness, attitude, etc.

v e
i
Sociology: Psychology deals with an individual’s behaviour whereas
n
U
sociology deals with the behaviour of a group. The domain of sociology

L ,
includes status, society, social groups, prestige, social behaviour, etc. Some
key areas in the domain of OB that are influenced by the knowledge of

O
sociology are formal and informal organization, group dynamics, etc.
S
L /
Social Psychology: The blend of psychology and sociology is termed

O
Social Psychology. In simple words, it means the influence of group

/ C
members on individual members of the group. Some key areas in

C E
the domain of OB that are influenced by the knowledge of social
psychology are group decision-making, change in attitude, behaviour,

D
communication, etc.

©D
Anthropology: Anthropology deals with the study of human culture.
It includes knowledge of various cultures and the impact of multiple
cultures on human behaviour. With globalization, workforce diversity
is inevitable, and employees from different cultures come together to
accomplish organizational goals. Therefore, it is essential to understand
the influence of culture on human behaviour. Some key areas in the
domain of OB that are influenced by the knowledge of anthropology
are cross-culture influences, values, etc.

PAGE 13
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR
MBA

Notes

h i
e l
D
of
i ty
r s
v e
n i
, U
O L
/ S
O L
/ C
C E
D
©D
FigureFigure 1.6:
1.6 Major Major that
disciplines Disciplines that
contribute to Contribute
the domain to the Domain
of organizational of
behaviour
Organizational
Source: Robbins, S. P., Judge, T. A., & Vohra,Behaviour
N. (2019). Organizational behaviour by
Pearson 18e. Pearson Education India.
(Source: Robbins, S.P., Judge, T.A., & Vohra, N. (2019). Organizational
behaviour by Pearson 18e. Pearson Education India.)
14 | P a g e

© Department of Distance & Continuing Education, Campus of Open Learning,

1.10 Level of Organizational
School of Open Learning,Behaviour
University of Delhi

Employee behaviour can be analysed at three levels, namely, individual,

group, and organizational. The individual-level analysis is a micro-level

14 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

analysis, whereas the organizational-level analysis is a macro-level analysis. Notes

This difference in the analysis is required because it has been observed
that the behaviour of employees is different when they work in groups
compared to when they work individually.

1.10.1 Individual Level Analysis

Unlike static resources, humans as a resource differ from one another.
Organizations are made up of people, and every employee in an organization
h i
is central to the study of OB. Individual-level analysis or micro-level analysis
e l
D
helps in understanding individual differences. Integrating these individual

of
factors provides insights to a manager and facilitates an understanding
of human behaviour. Some factors that fall under this category could

ty
be an input (like - personality, values, attitude, etc.) or a process (like
perception, learning, motivation of individual employees, etc.)
s i
e r
v
1.10.2 Group Level Analysis

n i
U
Employees are expected to work in a group. Working in teams is essential

,
for surviving in a competitive environment. Individual employees perform

O L
differently when they work in groups. Also known as meso-level analysis,
it helps understand group dynamics. Areas of interest in this category

/ S
include group cohesiveness, teamwork, power, politics, group dynamics, etc.

O L
C
1.10.3 Organization Level Analysis

E /
It is also known as macro-level analysis. Several groups/teams operate

D C
within an organizational structure. They together form the culture. The

©D
organizational level analysis consists of a study of culture, climate, cross-
culture analysis, etc., For example, it has been observed that employees
often resist change, and change is an inevitable process. OB helps deal
with resistance to change and facilitates a smooth change process.

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes
Organizational
Level

Group Level

Individual

i
Level

l h
D e
Figure 1.7: Level of analysis in Organizational Behaviour
IN-TEXT QUESTIONS
of
ty
6. Level of organization could be broadly classified into ___________
categories.
s i
e r
7. Individual level analysis is also known as micro-level
analysis.
i v (True/False)

n
8. Following title is not related to individual level analysis—
U
,
(a) Personality (c) Values

O L
(b) Attitude (d) Culture

S
9. ___________ is also known as meso level analysis.
/
O L
10. Organization represents a set of arrangement by group of people
to accomplish_______________.

C
/ Challenges and Opportunities in Organizational
E1.11
C Behaviour
D D
©
Organizational behaviour has grown in importance as the work environment
has become more challenging, and the understanding of organisational
behaviour is being looked upon to provide solutions to the challenges.
The diversity in the workplace has increased, and now organizations
need more flexible employees. With technological advancement and
globalization, new employment opportunities have emerged, and managing
the workforce has become more challenging. The emerging gig economy
and use of artificial intelligence in all spheres of business are presenting

16 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

fresh challenges for managers. Following are emerging challenges where Notes
the understanding of OB provides a solution to the manager.
Enabling Leaders to Lead in a VUCA World: Leading in today’s VUCA
world (Volatile, Uncertain, Complex & Ambiguous) creates unprecedented
challenges that traditional leadership development fails to address. Leaders
need to regain control of what they pay attention to and be capable of
maintaining focus whilst experiencing feelings of fear, self-protection and,
uncertainty. By practising mindfulness, leaders can equip themselves with
the ability to feel calmer, be more present and develop clearer thinking
h i
amidst these challenging external conditions.
e l
Agility and Teams Work: With the increasing need for organisations to
D
of
become more agile, teams are becoming the foundation of organisational
structure. Cisco, for example, already has more than 20,000 teams, with

ty
people sitting on many teams simultaneously. Agile teaming as a work

i
practice requires agile minds, focusing more on “we and our priorities”
s
r
and less on “me and my priorities”. The pace of forming-to-performing
e
v
and team disbanding has now become a strategic advantage. As we
i
practice mindfulness, our default “all about me” thinking patterns become
n
U
less automatic and habitual, and we open up to more inclusive thinking.

,
Mindfulness also increases our cognitive flexibility, enabling us to think

members, or a new project.

O L
about things in new ways, be that the new ways of working, new team

/ S
Responding to Globalization: Globalization refers to the integration
L
of various economies. Today businesses are no longer restricted to a
O
C
particular region. Companies have presence in multiple countries; for

E /
example, Samsung a South Korean company has worldwide operations and
so does the Burger King Brazilian company. Companies hire employees

D C
from other countries due to the cost of labour; like Apple Inc is an

©D
American company, but most Apple employees are not from the US.
Even the production process is undertaken in a foreign land by some
companies like Honda cars are built in Ohio. The world has become a
“Global village”. Therefore, a manager needs to focus on global issues.
An expatriate manager must understand the cultural differences among
employees. Something that fits the culture of the homeland might not
work in other countries.
Managing Workforce Diversity: Workforce diversity means differences
and similarities between employees in terms of gender, ethnicity, race,

PAGE 17
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes sexual orientation, age, value, etc. Organizations operating globally have
to deal with a diverse workforce. The heterogeneous workforce is essential
because it helps the organization understand the customer needs. It helps
in bringing innovative ideas to the organization and increases the morale
of other employees. But the diversified workforce is also a challenge for
management. It is difficult to resolve conflicts as people tend to stick to
their viewpoints which often centre around their values, belief, religion,
or ethnicity.

h
Improving Customer Service: Employees in front roles (directly dealing i
e l
with customers) play an essential role in ensuring customer satisfaction

D
as it plays a vital role in a competitive environment. Therefore, there is a

of
need for a “customer- responsive” culture in an organization. Organizational
behaviour helps managers bring such a culture into the organization by

ty
working on employees’ attitudes and behaviour.

s i
Working in Networked Organization: Network organizations allow

e r
employees to work together even when they are far away from each

i v
other in terms of distance. Worldwide lockdown around 2020 due to the

U n
pandemic (Covid-19), forced most organizations to move to the virtual
platform. Even today in 2023, many businesses are still working through

L ,
virtual platforms or have permanently adopted a hybrid mode. Managing

O
such an organization needs different set of skills. Virtually collaborating

/ S
and coordinating with employees is an emerging challenge for managers.

O L
Helping Employees in Work-life Balance: Employees today find it
challenging to create a balance between their work and life. Long working

/ C
hours are one of the main reasons for work-life conflict. Today, employees

C Efrom all over the world are virtually connecting through online platforms.
It may be daytime for one employee and night for another employee. So,
D
©D
the world never sleeps. Work is endless, and there is no specific working
time. Such conditions of present-day work lead to work-life conflict. It
can increase burnout and stress among employees and, drop productivity.
Creating a Positive Work Environment: The new wave of positivity
within the organization led to the growth of a new concept of Positive
Organizational Behaviour (POB), a study that focuses on the strength of
employees. The earlier focus of managers was to work on the weakness
of the employees or correct what is wrong, but the field of POB suggests
that the focus needs to be deviation from what is wrong to what is right.

18 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

Therefore, a manager today needs to learn how to get the best from the Notes
strengths of the employees.
Improving Ethical Behaviour: It is not that employees always want to
do something considered wrong on moral grounds for their benefit or that
they are not aware of what is right or ethical. It is just that people at
work face Moral Distress, i.e., they mostly know what is right, but due
to the limitations and fear of adverse outcomes, they fail to do the right
thing. There is no clear line between what is right and wrong. Still, a
manager needs to create an “ethically-healthy climate”, which minimizes
h i
the vagueness between right and wrong behaviours. It is important to
e l
D
promote integrity in the organization at all levels.

of
Economic Pressure: Managing employees in bad times, like Covid-19, is
more challenging than managing employees in good times. The Covid-19

ty
pandemic besides impacting health conditions pushed organizations to

s i
cost-cut. Therefore, COVID -19 brought about a sudden change in the

r
business environment and presented unprecedented challenges to most
e
v
businesses and their management. Under good economic conditions,
i
n
managers work on employee motivation through rewards, but under bad

conditions at the workplace.

, U
economic conditions, managers need to deal with the growing stress

O L
The above challenges provide various opportunities to present-day managers.

S
For instance, workforce diversity brings new ideas to the organization

L /
but also leads to increased conflicts. Therefore, a manager must learn

O
how to convert these challenges into opportunities.
IN-TEXT QUESTIONS
/ C
CE
11. To coordinate with employee’s manager needs skills.

D
12. Role of manager is changing and becoming more challenging

©
13. D
due to the technological advancements. (True/False)
suggests that the focus needs to be a deviation from what
is wrong to what is right.
14. A manager needs to analyse complex nature problem.
Models of Organisational Behaviour (OB)
Managers behave the way they think is the best for the organisations,
based on assumptions about people. This behaviour results in an OB

PAGE 19
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes model that prevails in the entire organisation. The following OB models
represent beliefs about how managers think and act:
1. Autocratic Model
2. Custodial Model
3. Supportive Model
4. Collegial Model

i
5. Systems Model
1. Autocratic Model: This model assumes that workers are lazy
l h
D e
and dislike work. They do not assume responsibility and prefer
to be directed. They do not take initiative to work. Managers

of
work in a formal environment and use authority to get the work
done. Employees follow their orders for fulfilment of their needs.

i ty
Managers issue orders by virtue of their position and authority.

s
They use negative forces of motivation like threats and punishments
r
e
to which the employees simply obey. They are not committed to

v
n i
the organisation. There is strict and close supervision to get the
desired performance, communication is one-way (top to bottom)

U
and interaction of managers with employees is minimum.
,
O L
This model is largely based on McGregor’s. Theory X assumptions
about motivating people and Rensis Likert’s system 1 of management

/ S
which believes in external control or the exploitative-authoritative

L
style of leadership. This model is most suitable in situations like—

CO
Urgent action is required.

E/
u

u Employees are unskilled, inexperienced and submissive.

DC
u Employees have strong lower-order needs.

©D
2. Custodial Model: This model is based on economic concept.
Employees develop a sense of insecurity at work. To develop better
relationships with employees, managers follow the custodial model
of OB. They provide fringe benefits and economic rewards, like
pension, gratuity etc. to employees. Money is a strong motivator
to satisfy their security needs (job security). Rather than depending
on the managers, employees become dependant on the organisation.
They want the organisation to provide them a fair wage for which
they cooperate with the management. Money serves as maintenance

20 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

factor. It, thus, believes in the power of money rather than power Notes
of authority. Though workers are not dissatisfied with their jobs,
they are not motivated to perform better. They do not participate
in the decision-making process, they do not decide their rewards
and, therefore, they are happy but not motivated. It assumes that
managers know what is best for them. They are their custodians
and decide what is good for them. This approach of paternalism
does not work for employees who have strong higher-order needs
(ego satisfaction, recognition and achievement). Workers in this
h i
approach are, thus, happy but not productive.
e l
3. Supportive Model: While autocratic model satisfies physiological
D
of
needs of people through use of power and custodial model satisfies
safety needs through use of money, the supportive model satisfies

ty
psychological needs through participative style of management.

s i
Managers adopt relationship-oriented behaviour and participative

e r
decision-making processes. Communication is two-way and a healthy

i v
work climate takes care of the human side of the organisation. It

U n
provides supportive climate in the organisation where employees
contribute to the best of their abilities. Their innovative abilities
are exploited to the fullest.
L ,
O
Managers, thus, focus on human relations. They have an attitude of

/ S
care and understanding for each other.

O L
This model is similar to Theory Y assumptions of McGregor’s
theory of motivation and also supports system 4 (participative style

/ C
of management) of Rensis Likert’s system of management. This

E
model is appropriate when:
C
D
u Workers’ higher-order needs are predominant.

©D
u They are self-motivated to work.
u Managers have trust and confidence in the employees.
4. Collegial Model: ‘Collegial’ means a body of people working
together for a common purpose. People work as a team. They are
self-directed and take independent charge of their work. They set
high targets, have full potential for development and are skilled
at work. This model is an extension of supportive model. The
manager, however, does not direct through incentives. People have

PAGE 21
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes strong higher-order needs and produce good results at work. Since
the team is confident, capable and motivated, managers often step
back and let the people go on with their tasks. They empower the
group handing ownership to them. People look at organisational
tasks as their own tasks and work for the company.
This model is appropriate when:
u People use their innovative abilities.
u

h i
Work is intellectually challenging with behavioural flexibility.
u People have freedom to work.
e l
D
5. Systems Model: Under this model, people work for their self-

of
actualisation needs; need to become what they want to become or to
do what they want to do. They look for challenge and meaning in

ty
their work and are not satisfied by mere financial rewards. Employees

s i
do not see organisations as different from themselves. They go

e r
beyond discipline and motivation and work to create organisational

i v
culture that serves as a benchmark for others. Organisations take

U n
benefit of such employees and employees also view organisations
as a source of fulfilment of their needs. There is mutuality of

L ,
interests between the organisation and the employees. It requires
transformational leaders who let the people decide for themselves

S O
and their organisations.

L /
These models are based on assumptions about people and how

O
they react to different situations. Primarily, they depend upon need

C
/
hierarchy of the individuals. As one moves up the hierarchy, each

C E successive model focuses on human side of organisations.

D
When people have—

©D
u Strong physiological needs, managers adopt autocratic model;
u In case of strong security needs, custodial model works better;
u In case of social and esteem needs, supportive model is adopted;
u High-order needs (achievement and self-actualisation) are met
through collegial and systems model.
These models are contingent upon the situation; policies of the organisation,
its culture and climate, the level at which people are working, their level

22 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Introduction to Organizational Behaviour

of maturity, work environment, personality factors etc. In the contemporary Notes

business environment, people are important assets of the organisation and
managers no more see them as passive and immature workers. They are
independent, mature and prefer to work in participative style of management.
There is a tendency to focus more on supportive models. These models
help in morale building and achieve organisational effectiveness.

1.12 Managerial Implication

h i
The following are the implications for the managers—
e l
1. Human behaviour is complex, and it is challenging to generalize
D
of
human behaviour. Though some provide insights for understanding
and generalizing human behaviour, most of them are erroneous.

i ty
2. Managers often try to use intuition/idea/or feeling while explaining

s
cause-and-effect relationships. But sometimes feelings lead to
r
e
incorrect decisions. Therefore, it is important to use metrics and
rely on facts.
i v
n
3. Managers should learn interpersonal skills. In a managerial role, soft
U
,
skills like empathy, communication, leadership skills, etc., are more
important than technical skills.

O L
4. Work environment is changing continuously. Hence managers needs

/ S
to upgrade their technical and conceptual skills. They must also
L
update themselves with the new OB trends like Big Data.
O
C
5. Concepts of OB provide various insights that help a manager resolve
/
E
conflicts, improve work-life balance, reduce stress, etc.

D C
1.13 Summary

©D
The lesson aims to highlight the meaning of organizational behaviour,
the need for interpersonal skills, and managerial functions and roles. The
present-day managerial roles have changed with technological advancement,
globalization, organizational structures, and changing employee lifestyles. A
manager needs to learn how to convert these challenges into opportunities.
Additionally, with increasing complexity in an organization, the skills
required by a manager also vary. The domain of organizational behaviour
integrates the knowledge drawn from various disciplines like psychology,

PAGE 23
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes social psychology, anthropology, and sociology. It helps in understanding

people’s behaviour at individual, group, and organisational level. and
applies knowledge that enhances organizational effectiveness.

1.14 Answers to In-Text Questions

1. Minimum Resources

i
2. Henri Fayol
3. Spokesperson (or Informational role of manager)
l h
4. Figurehead
D e
of
5. Planning
6. Three
7. True
i ty
8. (d) Culture
r s
9. Group-level analysis
v e
n i
10. Purpose/goal (Both are correct)
11. Human skills
, U
12. True

O L
13. Positive Organisation Behaviour

/ S
L
14. Conceptual Skills

C O
/
1.15 Self-Assessment Questions

C E 1. Assume you are a bank manager. As per Mintzberg’s theory, what

D roles do you think you will be required to play as a manager?

©D
(BMS; Open book exam).
2. An effective manager may not be an efficient manager. Comment.
Explain the skills required by a manager to become successful.
3. Write short note on the functions of a manager. State how functions
of management are different from managerial roles.

24 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
Introduction to Organizational Behaviour

4. Explain various challenges faced by present-day managers. Elaborate Notes

on how the role of manager is changing with time.
5. “Management is a universal concept”. Do you agree? Comment.

1.16 References
u Robbins, S.P., & Coulter, M. (2017). Management 13E. Noida, India:
Pearson India.

h i
l
u Robbins, S.P., Judge, T.A., & Vohra, N. (2019). Organizational
behaviour by Pearson 18e. Pearson Education India. (Chapter 1)
Pistrui, J., & Dimov, D. (2018). The role of a manager has to change
D e
of
u
in 5 key ways. Harvard Business Review.

ty
u F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers
(Cambridge, MA: Ballinger, 1988).
s i
u

e r
Bartol, K.M., & Martin, D.C. (1994). Management (International
2nd ed.). New York: McGraw-Hill.
i v
1.17 Suggested Readings
U n
L ,
Robbins, S.P., Judge, T.A., & Vohra, N. (2019). Organizational
O
u

S
behaviour by Pearson 18e. Pearson Education India.
u
L /
Kaul, V. (2011). Business Organization and Management: Text and

O
Cases. Pearson Education India.

C
E /
D C
©D

PAGE 25
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
L E S S O N

2
Personality
Dr. Anupreet Kaur Mokha
Assistant Professor
SGTB Khalsa College
University of Delhi
Email-Id: [email protected]

h i
STRUCTURE
e l
D
of
2.1 Learning Objectives
2.2 Introduction
2.3 Concept of Personality
i ty
2.4 Determinants of Personality
r s
2.5 Types of Personality
v e
2.6 Theories of Personality
n i
2.7 How Personality Develops
, U
2.9 How to Measure Personality
O L
2.8 How Personality Influences Organizational Behaviour

/ S
L
2.10 Summary

O
2.11 Answers to In-Text Questions
C
2.13 ReferencesE
/
2.12 Self-Assessment Questions

D C Readings
2.14 Suggested

2.1©
D
Learning Objectives
At the end of this lesson, the student should be able to:
u To understand the concept of personality and various factors that determine personality.
u To identify various types and theories of personality.
u To comprehend the development and assessment of personality.
u To examine how personality influences organizational behaviour.

26 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Personality

2.2 Introduction Notes

Personality is a key psychological component that influences an individual’s

behaviour. Personality is the role that an individual performs in public. The
personality of an individual is distinct, personal and a major determinant
of his behaviour. Hence, it is important to understand the concept of
personality in shaping individual behaviour.
This lesson provides an overview of personality. It discusses various
factors that determine personality. The next part of the lesson briefly
h i
explains the types and theories of personality. The lesson also explores
e l
D
the development of personality. Later on, this lesson also examines how

of
personality influences organizational behaviour.
This lesson will help the learners to understand various traits of personality

ty
and how it has a significant impact on organizational behaviour. It will
i
assist them in shaping their behaviour in real-life situations.
r s
v e
2.3 Concept of Personality
n i
, U
The term “personality” originates from the Latin word “persona”, which
means “to speak through”. This Latin term refers to the masks used by

O L
the actors. As a result, personality is the role that an individual performs

S
in public. Personality does not just refer to a person’s charm, appearance,

L /
smiling face, and attitude toward life. However, it is a dynamic notion

O
that represents the evolution and development of an individual’s entire

/ C
psychological system. Traditionally, the idea of personality pertains to

E
how individuals affect others through their outer appearances and conduct.

D C
Personality is a reasonably consistent set of characteristics that impact
an individual’s behaviour and may be defined as the sum total of an

©D
individual’s reactions and interactions with others.
Personality is interpreted differently by different psychologists. The following
definitions will help you better understand the notion of personality:
According to Gordon Allport, personality is defined as “the dynamic
organization within the individual of those psychological systems that
determine his unique adjustment to his environment”.
In the words of Floyd L. Ruch, “Personality includes external appearance
and behaviour, inner awareness of self as a permanent organizing force

PAGE 27
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes and the particular pattern or organization of measurable traits, both

inner and outer”.
Fred Luthans defined personality as “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.”
These definitions of personality clearly demonstrate that the meaning
of personality is considerably more than just the part that an individual

i
performs in public. Integrating these definitions, one may say that

l h
personality is the sum of various characteristics that are evident in an
individual and define his/her behaviour pattern.

D e
of
2.4 Determinants of Personality

i ty
Now that you have understood the meaning of personality, the next

s
question arises about how an individual’s personality is developed.
r
e
Personality is an intangible idea. It is complicated since it is linked to
v
n i
cognitive and psychological processes. It is said that an individual is
born with certain mental and physical characteristics, but personality

, U
gets shaped depending on the environment in which a person has been

O L
raised. A variety of factors influence an individual’s personality, including
biological factors, family and social factors, situational factors, and

/ S
environmental factors.

L
Biological Factors
O
C
Biological factors are those factors related to the human body. Three
/
E
factors are considered to be relevant namely:

D C u Heredity: It refers to the characteristics of a person’s personality

that are passed down from parents to children. These parameters

©D
are decided at the time of conception. Temperament, sex, energy
level, reflexes, etc. are often inherited totally or partially from the
parents. This viewpoint contends that the molecular structure of
genes is the foundation of human personality.
u Physical Attributes: Personality is influenced by physical attributes
and maturation pace. The pace of maturation is linked to physical
stature. It is considered that an individual’s physical appearance has

28 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Personality

a significant impact on his personality. For example, height, colour, Notes

facial attractiveness, physical strength, etc., all have an impact on
one’s self-concept.
u Brain: Biological factors have an impact on the brain. The composition
and structure of the brain have a significant impact on one’s
personality. Few scientific studies show the brain impacts personality.
Family and Social Factors
Family and social factors have a vital role in developing an individual’s
h i
personality. The personality is influenced by three key factors namely:
e l
D
u Socialization: It is the process by which a new-born acquires a wide

of
variety of behavior from an extremely vast range of behavioural
potentialities that are available at birth. Those patterns of behaviour

ty
are considered acceptable and normal by the family and social

i
groups. Family members force the infant to adhere to particular
s
acceptable behaviours.
e r
u

i v
Identification: The process of shaping one’s personality begins with

U n
the identification process. The identification process happens when
a person attempts to identify oneself with someone in the family

mother.
L ,
who is considered ideal. Normally, children emulate their father or

S O
/
u Birth order: Another important factor determining an individual’s

O L
personality is birth order. For example, first born children are more
likely to be reliant, logical, ambitious, cooperative, diligent and less

/ C
aggressive, as well as more prone to anxiety and guilt.

E
Situational Factors
C
D
The impact of situational factors on personality has become more widely

©D
recognized in recent years. In general, an individual’s personality is
constant and stable, yet it fluctuates depending on the situation. Life is
typically described as a series of experiences. Every person goes through
many situations in his life that have a significant impact on his personality
development. It sometimes exercises restrictions and sometimes boosts
an individual’s behaviour. For example, a coward and a physically frail
person might occasionally act bravely to save the life of a close one.

PAGE 29
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Environmental Factors

Environmental factors are the ones that exist within and around an
individual. They are cultural considerations. Culture influences human
decision-making, independence, Dependency, attitudes, soberness, violence,
competitiveness, cooperation and shyness. Culture comprises two essential
components – individual conformity and approval by the wider group.
Culture creates rules, attitudes and values that are imposed by various
social groups. Individuals are obliged to adapt to the culture that society

h i
has built. Every culture has its sub-cultures further specifying success

e l
criteria, moral standards, appropriate style of dress, and hygiene standards.

D
These cultural sub-groups have a large influence on an individual’s

of
personality development. For example, a girl born and raised in a rich
family in an urban region will act differently than a girl born and raised

ty
in a poor family in a slum area.

s i
It is evident from the above discussion that a variety of factors determine

e r
an individual’s personality. As a result, one must consider personality as
a comprehensive system.
i v
n
Personal factors like age, gender, marital status affect personality in the
U
,
following ways:

O L
1. Age: Stability is highest during middle adulthood and relatively
lower during young adulthood and potentially also old age.

/ S
L
2. Gender: Jobs which are demanding on physical strain and time are

O
stressful for women than men.

/ C
3. Ability: Physical and intellectual abilities affect personality in

C E defining skills, aptitude, perception and analytical abilities at work.

D
IN-TEXT QUESTIONS

©D
1. _____ refers to the characteristics of a person’s personality that
are passed down from parents to their children.
(a) Heredity
(b) Physical Attributes
(c) Brain
(d) Socialization

30 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Personality

2. Which of the following are the factors that determine personality? Notes

(a) Biological
(b) Environmental
(c) Situational
(d) All of these
3. ________is the process by which a newborn acquires a wide
variety of behaviour from the extremely vast range of behavioural

h i
potentialities that are available to him at birth.

e l
D
(a) Identification

of
(b) Physical Attributes
(c) Birth order
(d) Socialization
i ty
r s
4. A coward and a physically frail person might occasionally act

v e
bravely to save the life of the close one is an example of which
factor of personality?
n i
(a) Biological

, U
L
(b) Situational
(c) Environmental

S O
(d) All of these
L /
O
5. When a person attempts to identify himself/herself with someone

C
in the family who he/she considers ideal it is known as:

E /
(a) Birth order

C
(b) Physical Attributes
D
©D
(c) Identification
(d) Socialization

2.5 Types of Personality

Personality qualities help people understand their personality types. The
personality types are discussed below:

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes The Myers-Briggs Type Indicator (MBTI)

The MBTI is a personality assessment instrument that is widely used across
the world. This instrument consists of 100 statements on human personality.
It asks individuals how they generally feel in specific scenarios. Based
on the responses provided by the individuals, they are categorized as:
u Extroverted v. Introverted (E or I): Extroverted individuals are
outgoing, friendly, and self-assured, whereas introverted people are

i
calm and reserved.

l h
Thinking v. Feeling (T or F): Feeling types of individuals often base
e
u
their decisions on their own morals and feelings, whereas thinking
D
individuals are more logical and sensible in general.
u
of
Sensing v. Intuitive (S or I): Sensing individuals are highly practical

ty
and tend to stick to routines and orders. In contrast, intuitive

i
individuals are not practical and typically rely on unconscious
s
processes.
e r
u

i v
Judging v. Perceiving (J or P): Judging personalities appreciate order

U n
and organization in their surroundings and seek control, whereas
perceiving personalities are more adaptable and impulsive.

L ,
Higher and lower scores in each of these characteristics aid in categorizing

O
individuals into 16 different personality types. For instance, Extroverted/

/ S
Sensing/Thinking/Judging (ESTJ) people are effective organizers and

O L
decision-makers because they are logical, reasonable, and analytical.
Introverted/ Intuitive/ Thinking/ Judging (IITJ) persons are self-sufficient,

/ C
driven, excellent creative thinkers, and have a strong desire to pursue their

C Eown ideas. As a result, it can be stated that MBTI is a highly effective

instrument that is frequently used for employee selection, enhancing self-

D awareness, and offering career direction.

©D
The Big Five Personality Model
The Big Five Personality Model is a paradigm that identifies five essential
personality dimensions namely conscientiousness, emotional stability,
extroversion, agreeableness, and openness to experience. These five
characteristics are fundamental and accurately reflect the substantial
differences in personality. These factors are discussed below:
u Conscientiousness: This factor measures an individual’s reliability.
Individuals who are conscientious are more trustworthy, reliable,

32 PAGE
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School of Open Learning, University of Delhi
 Personality

systematic and organized. An individual with poor conscientiousness, Notes

on the other hand, is reckless, less trustworthy, negligent, and
unorganized.
u Agreeableness: This factor relates to a person’s capacity to collaborate
with others. Highly agreeable individuals are compassionate and
cooperative. Individuals that score low on this dimension, are likely
to be non-cooperative, disagreeable, and self-centered.

i
u Extroversion: This factor defines an individual’s level of ease in
interpersonal connections. Extroverts are more talkative, friendly,
l h
social and self-assured. Introverts, on the other hand, are more calm,
reserved and less social.
D e
u Emotional Stability: This factor demonstrates a person’s capacity to
of
ty
cope with stress. Individuals that are emotionally stable are usually

i
calm, secure and self-assured. Emotionally weak individuals, on the

s
r
other hand, are likely to be depressed, apprehensive, and insecure.

v e
Openness to Experience: This factor assesses a person’s creativity
i
u

n
and interests. Extremely open individuals are incredibly creative and

U
are constantly open to new ideas. On the other hand, individuals

L ,
that score low on this factor are less interested and do not respond
to new ideas. They normally follow conventional methods of doing
things.
S O
Type A and Type B Personalities
L /
O
Type A personalities are impatient, highly competitive and aggressive

C
/
whereas Type B personality individuals are easy-going, non-competitive

C E
and laid-back. Type A individuals are likely to be very productive as
they work really hard, however, they are more irritable, not good team
D
players, impatient and have poor judgment, whereas Type B individuals

©D
perform better on complex tasks involving accuracy and judgment rather
than hard work and speed.
Type A Personality Type B Personality
1. They are always in a hurry and feel 1. They work patiently and do not feel
urgency for time. urgency for time.
2. They are competitive and set high 2. They are not competitive and work
standards for themselves. in a composed way.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Type A Personality Type B Personality

3. They get aggressive and irritable if 3. They are relaxed and easy going.
things do not happen as they want.
4. They try to work more in less time. 4. They do not take work pressure and
They want to work even during work at steady pace.
leisure time.
5. For them, work is not a means to 5. Work is means to the end. They
an end; it is an end in itself. In fact, work to live.
they live to work.

h i
6. They are workaholics and are
disinterested in any work outside
6.
l
Though they are interested in work,

e
they are not workaholics. They even
the company.
D
extend deadlines, if required.

of
7. They do not get along well with 7. They have strong interpersonal skills
people as they lack interpersonal and do not lose temper on others if
skills.
i ty
the work is not done as scheduled.

r s
They are social and understand

e
people.
8. They prefer to work alone.
i v
8. They prefer to work in teams.

U
9. They are more prone to stress at 9.n They do not take stress at work.

mental ailments.
L ,
work and, therefore, physical and

S O
Type A and Type B personality traits affect individual behaviour at the

L /
work place and managers analyse these traits carefully to relate them

O
with organisation’s requirements.

/ C
Introversion and Extroversion

C EThese terms are usually associated with the sociability and interpersonal
orientation of an individual. While extroverts are more gregarious;
D
©D
introverts are more self-assured and driven by their own distinct thoughts.
Extroverts are reality-oriented, sociable individuals and are performers
whereas introverts, are less risk-taking and more directive. They need
strong encouragement and clear instructions. While extroverts think in
terms of interactive and objective interactions; introverts think in terms
of their own philosophy and belief.

34 PAGE
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 Personality

Notes
2.6 Theories of Personality
In the preceding section, you have learnt about types of personality. Now,
the next question arises about theories that shape personality. Personality
theories have been established to give insight into an individual’s personality.
They aid in comprehending the factors that form personalities. There are
four main theories of personality. Let us discuss them one by one.

i
Psychoanalytic Theory
The psychoanalytic theory is a personality theory that holds that an
l h
individual is more driven by unseen forces that are influenced by conscious
and logical thinking. The psychoanalytic theory is directly associated with
D e
of
Sigmund Freud. He contends that the interaction of the three components

ty
of the mind shapes human behaviour namely:
u

s i
Id: The primitive aspect of the mind that desires instant fulfilment of

r
biological or instinctive needs is known as the id. Biological needs
e
v
are the fundamental physical requirements, whereas instinctive needs

n i
are the unlearned or natural demands, such as hunger, thirst, sex,

U
and so on. Id is indeed the unconscious component of the mind that

L ,
acts instantly and without giving any consideration to what is right
and what is wrong. Id is, therefore, the source of psychic energy

O
and the driving factor underlying all mental forces.
S
u

L /
Super-Ego: The Super-Ego is associated with the social or moral

O
norms that an individual instils as s/he gets older. It serves as an

C
ethical restriction on action and aids in the development of an
/
E
individual’s conscience. As an individual matures in society, cultural

D C
values and social conventions leading towards distinguishing right
and wrong get acquired.

©D
u Ego: The ego is the rational and conscious aspect of the mind that
is linked to the reality principle. This implies that it balances the
needs of the Id and the super-ego in real-life situations. While the
Id is an unconscious part, the ego is conscious of the realities of
the external world, hence, the ego keeps the id in control through
intellect and reason.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Self-Concept Theory

The self-concept theory focuses on an individual’s set of perceptions about
oneself, as well as the perceptions of his/her interactions with others and
other areas of life. Carl Rogers made substantial contributions to the
self-theory. He defined self-concept theory as “an organized, consistent,
conceptual gestalt composed of perceptions of I or Me”. There are four
factors that comprise self-concept theory namely:

i
u Self-Image: Self-image refers to “what an individual perceives about

l h
himself”. Everyone has specific views about themselves, for example,

D e
who or what they are; these beliefs shape an individual’s self-image
and identity. According to Erikson, an identity is created through a

of
lifetime development that is typically unconscious to the individual
and his society. In other words, an individual builds perceptions

i ty
about himself unknowingly, based on social conditions.
u

r s
Ideal-Self: The term “ideal-self” refers to the “way an individual

e
would like to be”. It differs from the self-image as it depicts the
v
n i
ideal position that is perceived by an individual, whereas the self-
image represents the reality that an individual experiences. The

, U
difference between these two factors may thus exist. The ideal-self

O L
acts as a stimulus to drive an individual to engage in activities that
are consistent with the features of his ideal self.

/ S
Looking-Glass-Self: The looking-glass self refers to “an individual’s
L
u
impression of how others see his attributes or feel about him”.

C O
In other words, it is the perception of other’s perception that is

E / perceiving what others perceive about oneself rather than seeing

C
who you truly are.

D u Real-Self: The real-self is “what others show you in terms of your

©D
self-image”. An individual’s self-image is verified when others
respond to him and express their beliefs or perceptions about how
they genuinely feel about him. This is seen as an input from the
environment, which allows an individual to modify the self-image
in accordance with the information received.
Socio-Psychological Theory
According to the belief of socio-psychological theory, person and
society are found to be closely linked. This indicates that an individual

36 PAGE
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 Personality

seeks to satisfy the demands of society and society assists him/her in Notes
accomplishing the goals. An individual’s personality is formed as a result
of this interaction. Adler, Horney, Forman, and Sullivan contributed to
the socio-psychological theory. This theory (also known as Neo-Freudian
Theory) varies from Freud’s psychoanalytic theory in the following ways:
1. This theory contends that social variables rather than biological
instincts play an essential role in forming an individual’s personality.

i
2. In this, motivation is conscious, which means that the individual is
aware of his or her own needs and desires, as well as the kind of
l h
behaviour necessary to achieve those requirements.

D e
of
Thus, the theorists think that socio-psychological factors are a mix
of social (family, religion, society, money) and psychological (ideas,

ty
feelings, beliefs) factors that are regarded to have a significant impact
in determining an individual’s personality.

s i
Trait Theory
e r
i v
According to trait theory, an individual is made up of a set of defined

U n
predisposition characteristics known as traits. These characteristics are
identifiable and often long-lasting qualities of an individual that set

,
him apart from others. There are two main trait theories namely:
L
O
u Allport Trait Theory: This theory was proposed by Gordon Allport.

/ S
According to him, an individual’s personality may be examined by

O L
distinguishing between common traits and personal dispositions.
The common traits are used to compare people based on six values,

/ C
i.e., religious, economic, social, political, theoretical and aesthetic.

C E
Apart from common traits, there are personal dispositions that are
distinct and categorized as follows:
D
©D
n Cardinal Traits: The cardinal traits are strong and few people
have personalities that are dominated by a single trait such
as Mother Teressa’s selflessness.
n Central Traits: These are the general features that numerous
individuals share in varying degrees such as friendliness,
loyalty, kindness, agreeableness, etc.
n Secondary Trait: Secondary traits explain why an individual
acts differently than his/her usual behaviour at times. For

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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes example, a cheerful individual may become irritated when

others taunt him.
u Cattell’s Trait Theory: Raymond Cattell developed a taxonomy of
16 different personality traits. According to him, a vast number of
factors should be investigated to have a good comprehension of an
individual’s personality. He gathered life data (individuals’ daily
life behaviours), experimental data (standardizing experiments by
evaluating actions), questionnaire data (responses gained through

h
introspection of an individual’s behaviour), and performed factor i
e l
analysis to find traits that are connected to one another. He identified

D
16 key personality factors by performing factor analysis techniques

of
(Table 2.1).
Table 2.1: Cattell’s 16 Key Personality Traits
Traits
i ty
Abstractedness
r s
Imaginative vs. Practical
Apprehension
e
Worried vs. Confident
v
Dominance

n i Forceful vs. Submissive

U
Emotional Stability Calm vs. anxious

,
Liveliness Spontaneous vs. Restrained
Openness to Change
Perfectionism
O L Flexible vs. Stubborn
Controlled vs. Undisciplined
Privateness
/ S Discreet vs. Open
Reasoning

O L
Rule-Consciousness
Abstract vs. Concrete
Conforming vs. Non-Conforming

/ C
Self-Reliance Self-sufficient vs. Dependent

C E Sensitivity Tender vs. Tough

D
Social Boldness Uninhibited vs. Shy

©D
Tension Impatient vs. Relaxed
Vigilance Suspicious vs. Trusting
Warmth Outgoing vs. Reserved
The trait theory is based on the premise that traits are shared by many
individuals and fluctuate in absolute amounts. Furthermore, the traits
remain constant over time and may thus be assessed using behavioural
indicators.

38 PAGE
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Personality

IN-TEXT QUESTIONS Notes

6. _______ individuals are outgoing, friendly, and self-assured.

(a) Extroverted
(b) Introverted
(c) Thinking
(d) Feeling
7. _______ measures an individual’s reliability.
h i
(a) Conscientiousness
e l
(b) Emotional stability
D
of
(c) Extroversion

ty
(d) Sensing

s i
8. Which is not a factor that belongs to Big Five personality traits:
(a) Sensing
e r
(b) Extroversion
i v
(c) Conscientiousness
U n
(d) Sensing
L ,
O
9. The _______ is a personality theory that holds that an individual

S
is more driven by unseen forces that are influenced by conscious
/
L
and logical thinking.

O
(a) Psychoanalytic Theory

C
/
(b) Self-Concept Theory
E
C
(c) Socio-Psychological Theory

D
(d) Trait Theory

©D
10. Which theory is also known as Neo-Freudian Theory?
(a) Trait Theory
(b) Psychoanalytic Theory
(c) Socio-Psychological Theory
(d) Self-Concept Theory

PAGE 39
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes ACTIVITY
Observe persons you know very closely and note down the various
attributes of Id, Super Ego and Ego they possess.

2.7 How Personality Develops

There are two prominent psychologists, Sigmund Freud and Erikson, who
described the development of personality. Let’s discuss each of them.

h i
Sigmund Freud’s Stages of Personality Development
e l
D
Sigmund Freud proposed five universal stages of personality development

of
namely oral, anal, phallic, latency, and genital. These stages are explained
below:
u

i ty
The Oral Stage: This stage extends throughout the first year of life.

s
During this time, the child’s mouth is the most sensitive area of
r
e
the body and the primary source of pleasure and joy. For instance,

i v
an infant’s thumb sucking or biting when teeth erupt. The way the

U n
mother cares for the child influences whether the infant trusts or
distrusts the environment (represented by the mother) around him.

,
If his desires are frequently fulfilled, he develops trust and assumes
L
O
that the world will look after him.
u

/ S
The Anal Stage: This stage expands from one to three years in

O L
which the center of libidinal energy transfers from the mouth to the
anal area. In other words, the anal zone of the body becomes the

/ Csource of sexual satisfaction. Young children take great enjoyment

C E in both the retention and ejection of feces. Toilet training provided

by the parents to the child has an impact on the child’s adulthood.
D
©D
If the mother is overly strict and controlling, the child will withhold
feces and if this happens frequently enough, the child will become
anal-retentive. When a child grows up, such a personality will show
traits of stubbornness, frugalness, punctuality, excessive cleanliness
or extreme messiness.
u The Phallic Stage: Around the age of three to six years, the focus
on sexual enjoyment moves to another erogenous bodily zone, the
sex organs. During this time, children might be seen gratifying

40 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Personality

themselves by inspecting and fondling their genitalia, masturbating, Notes

and exhibiting excitement in the matter of birth and sex.
u The Latency Stage: The latency stage is the fourth stage lasting
six years until puberty. The libido is dormant at this stage, and no
more psychosexual development occurs. During this time, the child
lacks interest in sexual things and seeks libido gratification from the
outside world, such as interest, knowledge, and so on. It is a stage
of social development during which the child gains information and
abilities for interacting with the outside world.
h i
u The Genital Stage: The genital stage lasts from puberty to adulthood.
e l
There is a resurgence of sexual and violent impulses, as well as an
D
of
enhanced awareness of a desire for the opposite sex. The individual
finds satisfaction via heterosexual love. Libido discharge through

i ty
mature sexual encounters with an opposite sex partner opens the

s
door to true compassion for one’s fellow. Freud believes that if an
r
e
individual wants to attain ideal genital attributes then he should

v
n i
learn to work, delay gratification, become responsible, and, most
importantly, take a more active part in dealing with life’s issues.
Erikson’s Stages of Personality Development
, U
O L
Erikson criticized Freud’s emphasis on biological and social factors in
the development of personality. He believed that social concerns should

/ S
be given more consideration. Erikson established eight stages of life that
L
reflect a person’s continuous development. He described each stage as a
O
C
specific conflict that must be successfully resolved before moving on to

/
the next. These eight stages are explained below:
E
u

D C
Infancy: During the first year of life, a child resolves the fundamental
problem of trust vs. mistrust. An infant who receives love and care

©D
develops a sense of trust for other people whereas mistrust develops
from a lack of love and care. This period has a significant impact
on child’s future events.
u Early Childhood: A child’s independence begins to develop in the
second and third years of life. A sense of autonomy will emerge
if the child is permitted to govern those parts of life that the child
is capable of controlling. If the child often faces rejection from
adults, a sense of self-doubt and humiliation is likely to emerge.

PAGE 41
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes u Play Age: The four and five-year-olds are curious about their abilities.
A child will acquire a feeling of initiative if encouraged to try and
attain appropriate goals. If the child is controlled and made to feel
incompetent, it will develop remorse and a lack of self-confidence
in him/her.
u School Age: A child learns numerous new skills and develops social
talents between the age of 6 and 12 years. A child will acquire
a sense of enterprise if he sees actual progress at a rate that is

h i
appropriate for his abilities, whereas, in the opposite scenario, a
child will acquire a sense of inferiority.
e l
D
Adolescence: The problem of adolescence is gaining a sense of identity

of
u
rather than being confused about who you are. While enduring rapid
biological changes, the adolescent is simultaneously attempting to

i ty
distinguish himself or herself as socially distinct from the parents.

s
The autonomy, enterprise and initiative established in earlier stages
r
e
are critical in assisting the teenager to effectively resolve this issue

v
and prepare for adulthood.

n i
Early adulthood: The young adult in his or her twenties faces
U
u

,
the conflict of intimacy against isolation. The feeling of identity

O L
acquired throughout the adolescent years permits the young adult
to begin building meaningful and enduring relationships.

/ S
Adulthood: During this stage, adults must choose between generativity
L
u
and self-absorption. A self-absorbed individual never learns to see

C O
beyond themselves. They become preoccupied with maintaining

E / and advancing their careers, and they never learn to care about the

C
well-being of future generations, the organizations to which they

D
belong, or the welfare of society at large. A generative individual

©D
perceives the world as much larger than themselves. Workplace
productivity and societal growth become vital to them. They start to
exert influence that is advantageous to their organizations through
innovation and creativity.
u Mature Adulthood: In this stage, an individual is developed as a
mature individual. He has gained a sense of wisdom or despair
and has earned insight and perspective that can truly lead future
generations.

42 PAGE
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 Personality

Notes
2.8 How Personality Influences Organizational Behaviour
The personality traits of employees are used to analyze their behaviour and
to build appropriate tactics to cope with their behaviour. The following
are some of the attributes that impact organizational behaviour:
u Authoritarianism: Authoritarianism is a term used to characterize
people who have negative perceptions of their jobs and workers.

i
Authoritarian persons often see obedience to authority as vital, have
a negative attitude about people, adhere to traditional value systems
l h
regarding people and work, are highly inflexible, and are opposed to
making decisions based on feelings and emotions. Such individuals
D e
of
want a well-organized and structured job environment guided by
rules and regulations. They prefer autocratic or directive leadership,

i ty
respect those who are in higher positions in the organizational

s
hierarchy and also want respect from those who work for them.
r
u

v e
Locus of control: The belief about the results of their actions is

n i
termed as the locus of control. Some people feel that their talents
and abilities have an impact on the result of an activity. Others think

, U
that external factors such as fate or chance impact their outcome.

O L
Individuals who feel they have control over what happens to them
are termed internals, whereas those who believe it is governed by

/ S
other forces such as luck or chance are called externals. Internals

O L
are typically more satisfied with their jobs and are more active in
seeking out information to make decisions than externals. Externals

/ C
are more likely to be absent from their work, less satisfied and less

E
committed to their jobs than internals.
C
D
u Machiavellianism: The term Machiavellianism is named after the works

©D
of Nicolo Machiavelli. Machiavellianism refers to an individual’s
tendency to manipulate others in order to gain and achieve power.
Such people are more inclined to be active in organizational politics.
Individuals who exhibit this attribute with greater intensity are
known as high Machs. High Machs are more realistic, emotionally
stable, and willing to use any means to attain their goals. They
manipulate more and generally win more. They are more likely to
succeed in an environment with few rules and restrictions and are

PAGE 43
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes more self-assured and have higher self-esteem. They perform well
in jobs that are more rewarding or that demands bargaining skills.
u Achievement orientation: It is a personality attribute that is used to
predict an individual’s behaviour at work. An individual having a
strong desire to succeed will make continuous attempts to do things
better. Such individuals are convinced that their failure or success is
the result of their own talents and flaws, as well as their own actions.
These individuals dislike performing easy jobs because they do not

h
appear to be challenging, nor do they enjoy performing tough tasks i
e l
since the odds of failure are significant. As a result, they favour tasks

D
with a moderate level of difficulty. High achievers often work better

of
when they receive continuous performance feedback and the job has
a direct link between efforts and rewards.
u

i ty
Self-Esteem: A sense of liking or disliking oneself is referred to as

s
self-esteem. A person with a strong drive for achievement is said
r
e
to have high self-esteem. Such individuals feel that they have the

v
n i
necessary skills to succeed in work. People who have high self-
esteem are risk-takers. They like dangerous and difficult tasks.

U
They have an internal locus of control. They value pride, flair,
,
L
recognition, achievement, and independence and are fulfilled with

O
higher-order requirements over simple monetary motivation. People

/ S
with low self-esteem, on the other hand, are impacted by external

O L
factors. They value and appreciate other individuals’ perspectives
more. They do not wish to be in an uncomfortable situation. As a

/ Cresult, they strive to please.

CE
u Risk Taking: People’s attitudes toward taking risks vary. The willingness
to accept risks impacts decision-making. The risk-takers are more

D D inclined to make quick decisions. Taking risks is also linked to

©
job demands. High risk-taking is more prevalent in some castes,
nationalities, religions and gender groups. Risk-taking behaviour
in organizations is connected to employees’ capacity to take up
difficult jobs and possess a high level of achievement motivation.
u Self-Monitoring: Self-monitoring is the capacity to adjust to the
demands of the situation. Individuals with a high self-monitoring
score closely examine the behaviour of others to change their
own behaviour. They value professional mobility. They are more

44 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Personality

effective at performing opposing roles. These individuals can Notes

wear a mask that is more appropriate to the situation. As a result,
highly self-monitoring persons exhibit a high degree of behavioural
inconsistency. Therefore, the self-monitoring attribute assists managers
in understanding their subordinates’ personalities and behaviours to
guide, motivate, communicate and control them on the job.
ACTIVITY
Observe a group of people in the organization based on their

h i
characteristics and nature of work and differentiate between:

e l
D
1. Type A Type B personality

of
2. Internals and Externals
3. High Mach and Low Mach personality
4. High self-esteem and low self-esteem personality
i ty
5. Risk-seekers and risk-averse personality
r s
v e
2.9 How to Measure Personality
n i
, U
There are several reasons for assessing an individual’s personality.

O L
Understanding personality impacts numerous decisions, including recruiting
personnel, developing relationships, designing motivational packages,

/ S
and so on. A variety of metrics and procedures must be employed to
L
comprehend an individual’s personality. This, in turn, emphasizes the
O
C
need of developing appropriate methodologies for assessing personality.

/
Depending on the goal of the personality assessment, the usage of
E
C
assessment methods for understanding personality may change from time

D
to time and from circumstance to circumstance. There are three ways

©D
that are extensively utilized among the different methods of analyzing
personality i.e.:
u Personality Inventories (Objective Tests)
u Projective Tests
u Assessment Center
Personality Inventories (Objective Tests)
Personality inventories (often known as objective tests) are the most
widely used method of measuring personality. They are standardized and

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes can be administered to a large group of people at the same time. As the
name implies, this approach consists of a series of statements referring
to a specific aspect of the individual’s personality. These statements are
collectively known as ‘Personality Inventories,’ and they serve as the
foundation for prediction, or perhaps more accurately, understanding of
personality. It is a questionnaire-based way of assessing personality that
asks an individual to express reactions or feelings in certain scenarios.
Individuals are asked to indicate their level of agreement or disagreement
with each statement. Sometimes even a simple yes or no answer pattern
h i
is required.
e l
D
However, these replies are considered to have drawbacks such as faking

of
a positive reaction. This highlights the importance of taking corrective
actions to avoid and manage these drawbacks in order to generate a more

ty
trustworthy personal inventory. One method is to ask both positive and

i
negative statements about the same aspects of personality, as well as to
s
e r
reverse the degree of agreement or disagreement values. The most popular
personality inventories is the ‘Locus of Control’ developed by J.B. Rotter.

i v
As per Rotter, locus of control is a method of personality assessment

U n
that examines an individual’s internal and external orientation, as well

,
as his or her attitude toward control. On the basis of this, individuals are

O L
usually categorized into two extremes i.e., internal and external locus of
control. People with an “internal locus of control” are those who think

/ S
they have total control over their destiny and luck, whereas, people with

O L
an “external locus of control” are those who feel that what occurs to them
is completely at the mercy of forces outside their control. The locus of

/ C
control influences the individual’s behaviour and performance.

C EProjective Tests

D Projective tests, as opposed to the inventory method of personality

©D
measurement, are primarily used to determine the more subtle characteristics
of personality. As a result, these tests are predicated on the underlying
fundamental beliefs that an individual’s personality may be judged by
assessing some of his or her dormant feelings, ambitions, aspirations,
and hopes. Numerous projective tests for assessing personality have been
developed over time.
Projective tests include the Inkblot Test, Sentence Completion Test, Thematic
Appreciation Test (TAT), Picture Frustration Test and World Association
Test. Among them, the most extensively used projective test to measure

46 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Personality

personality is the Inkblot test, popularly known as the Rorschach test, Notes
devised by the Swiss psychiatrist named Herman Rorschach. In the Inkblot
test, Rorschach employed ten ambiguous and unstructured images termed
inkblots, with one-half identical to the other. The individuals are then
shown these inkblots/images and asked to describe what they perceive
in the inkblots/images. The interpretations of these inkblots/images
represent their sentiments or feelings, which serve as the foundation for
their personality assessment. Whereas, Morgan and Murrary devised the
Thematic Apperception Test (TAT) projective test, which is also used to
h i
measure an individual’s personality. It is made up of twenty images that
depict various societal situations. Unlike the Rorschach test, these images
e l
depict a more precise picture of a situation. Individuals are then asked toD
of
compose a story about what may be happening in such a social context.

ty
Assessment Centre

s i
In the 1930s, the notion of an assessment center was first applied to

r
military situations in the German army. The primary goal of this approach
e
v
was to evaluate applicants in a social setting. During the 1960s, this

n i
paradigm spread from the army to the business world. An assessment

, U
center is a tool used to examine personality. Situational tests, management
difficulties, business plan presentations, in-basket exercises, scenario-

O L
based decision-making exercises and other simulated activities are used
to evaluate personality. Individuals are required to take part in these

/ S
activities. Multiple trained assessors, who might be from inside or outside
L
the business, monitor the applicants’ behaviour and grade them based on
O
C
specified aspects considered significant in their job. A job analysis is

E /
used to discover the critical aspects of a job. Each assessor creates an
evaluation report for each applicant in the assessment exercises. Finally,

D C
all the reports are combined to create the employee’s profile.

©D
IN-TEXT QUESTIONS
11. Which is a term used to characterize people who have negative
perceptions toward their jobs and workers?
(a) Authoritarianism
(b) Locus of Control
(c) Machiavellianism
(d) Achievement Orientation

PAGE 47
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 12. A person with a strong drive for achievement is said to have
self-esteem.
(a) Low
(b) Medium
(c) High
(d) None of the above

i
13. ______is the capacity to adjust to the demands of the situation.

h
(a) Machiavellianism
e l
(b) Locus of Control
D
of
(c) Achievement Orientation
(d) Self-Monitoring

i ty
14. Which approach is a questionnaire-based way of assessing

r s
personality that asks an individual to express reactions or

v
feelings in certain scenarios?
e
n i
(a) Personality Inventories

U
(b) Projective Tests
,
O L
(c) Assessment Center
(d) Regressive Tests

/ S
15. Sentence completion test is an example of________.

O L
(a) Projective Tests

/ C (b) Personality Inventories

CE
(c) Assessment Center

D D (d) Regressive Tests

©
The assessment center approach to personality evaluation is beneficial
for both the organization as well as employees. Organizations gather
enough information about their employees to determine their strengths
and weaknesses. This data assists the organizations in planning the
selection, training, career paths and promotions of their employees. On
the other hand, employees, gather favourable impressions about their jobs,
chances of promotions and long-term loyalty to the organization. Many
Indian companies, including Hindustan Lever, Modi Xerox, Crompton

48 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Personality

Greaves, Eicher, etc., have embraced this approach of assessment. This Notes
strategy, however, is not without limitations. One is that many stimulating
approaches could not accurately represent the circumstance, and as a
result, the applicant might not act genuinely. Second, even if the employee
will be evaluated by many assessors, the halo effect in terms of personal
abilities may affect the assessment.
Halo effect is the tendency to think that a person who has one set of
positive qualities must be having other specific positive qualities that are
associated with the first set.
h i
e l
2.10 Summary
D
u Personality is the role that an individual performs in public.
of
u

i ty
A variety of factors influence an individual’s personality, including

s
biological factors, family and social factors, situational factors and
r
e
environmental factors.

i v
Personality qualities help people understand their personality types.
n
u
The personality types have been classified as The Myers-Briggs

, U
Type Indicator (MBTI), The Big Five Personality Model, Type A

O L
and Type B Personalities and Introversion and Extroversion.
The MBTI is a personality assessment instrument widely used
S
u

L /
across the world and includes various personality types such as
extroverted vs. introverted, thinking vs. feeling, sensing vs. intuitive

C O
and judging vs. perceiving.
u

E /
The Big five Personality Model is a paradigm that identifies five

D C
essential personality dimensions namely conscientiousness, emotional
stability, extroversion, agreeableness, and openness to experience.

©D
u Personality theories have been established to give insight into an
individual’s personality.
u There are four main theories of personality namely psychoanalytic
theory, self-concept theory, socio-psychological theory and trait
theory.
u The psychoanalytic theory is a personality theory that holds that
an individual is more driven by unseen forces that are influenced
by conscious and logical thinking.

PAGE 49
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes u The self-concept theory focuses on an individual’s set of perceptions

about himself/herself , as well as the perceptions of his/her interactions
with others and other areas of life.
u Socio-psychological theory indicates that an individual seeks to satisfy
the demands of society and society assists in accomplishing goals.
u According to trait theory, an individual is made up of a set of
defined predisposition characteristics known as traits.
u Freud proposed five universal stages of personality development
h i
namely oral, anal, phallic, latency and genital.
e l
D
u Erikson established eight stages of life that reflect a person’s continuous

of
development namely infancy, early childhood, play age, school age,
adolescence, early adulthood, adulthood and mature adulthood.

ty
The personality traits of employees are used to analyze their behaviour
i
u

s
and to build appropriate tactics to cope with their behaviour. The

e r
following are some of the attributes that impact organizational

i v
behaviour: authoritarianism, locus of control, Machiavellianism,

U n
achievement orientation, self-esteem, risk-taking and self- monitoring.
The three ways of measuring personality are personality inventories
,
u

L
(objective tests), projective tests and assessment centers.

S O
/
2.11 Answers to In-Text Questions
L
O
1. (a) Heredity

C
/
2. (d) All of these

CE
3. (d) Socialization

D D 4. (b) Situational

©
5. (c) Identification
6. (a) Extroverted
7. (a) Conscientiousness
8. (a) Sensing
9. (a) Psychoanalytic Theory

50 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Personality

10. (c) Socio-Psychological Theory Notes

11. (a) Authoritarianism
12. (c) High
13. (d) Self-Monitoring
14. (a) Personality Inventories
15. (a) Projective Tests

h i
2.12 Self-Assessment Questions
e l
1. Explain the concept of personality. Discuss the various factors that
D
of
determine personality.

ty
2. Briefly explain various theories of personality. According to you,
which theory is more comprehensive? Give reasons.

s i
r
3. Discuss how personality influences organizational behaviour.
e
4. Write a note on:
i v
(a) Self-Concept Theory
U n
,
(b) Freud’s Stages of Personality Development
(c) Locus of Control
O L
S
(d) Introversion and Extroversion
Match the following:
L /
(a) Heredity
C O 1. Type B personality

/
(b) Events are within control of a 2. Type A personality
E
C
person

D
(c) Relaxed and easy going 3. High self-esteem

©D
(d) Prefer to work alone 4. Low self-esteem
(e) Organizational Politics 5. Biological factor
(f) Risk-seekers 6. Machiavellianism
(g) Risk avoiders 7. Internal locus of control
Answers:
(a) 5 (b) 7 (c) 1 (d) 2 (e) 6 (f) 3 (g) 4

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes CASE STUDY

Rahul is the CEO of ABC Ltd. He is very particular about his work
and is very obedient toward his authorities. He is self-centered and
is not in favour of making decisions based on feelings and emotions.
He has a negative attitude toward other people who are not like him.
He does not like changes and follows traditional ways of meeting
challenges, hence, he is very stubborn. On the other hand, Dhruv
is an employee of ABC Ltd. He is opposite to Rahul. He makes

h i
l
a decision based on his feelings and emotions and is open to new
challenges and experiences, hence flexible.

D e
of
Based on this study, answer the following questions:
(a) Which personality trait(s) does Rahul possess? Discuss.

ty
(b) Does this trait(s) influence organizational behaviour?
i
r s
(c) Enumerate the differences between the personality traits of Rahul
and Dhruv.

v e
i
(d) Which theory of personality applies in this case?
n
2.13 References
, U
O L
Pareek, U. & Khanna, S. (2016). Understanding Organizational
S
u

/
Behaviour (4th Ed.). New Delhi: Oxford University Press.

L
O
u Robbins, S. P., Judge, T.A., & Vohra, N. (2015). Organizational

C
Behaviour (16th Ed.). New York: Pearson Education.
/
E2.14 Suggested Readings
D C
©D
u Nelson, D. L., Quick, J.C., & Khandelwal, P. (2016). ORGB: A
South Asian Perspective (2nd Ed.). India: Cengage Learning India
Pvt. Ltd.
u Robbins, S. P., Judge, T.A. & Vohra, N. (2015). Organizational
Behaviour (16th Ed.). New York: Pearson Education.
u Singh, K. (2015). Organizational Behaviour: Text and Cases (3rd
Ed.). New Delhi: Vikas Publication.

52 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
L E S S O N

3
Learning, Attitudes, Values
and Emotions
Dr. Dimpy Handa
Assistant Professor
Shaheed Rajguru College of Applied

h
Sciences for Womeni
e l
University of Delhi

D
Email-Id: [email protected]

STRUCTURE of
i ty
s
3.1 Learning Objectives
3.2 Introduction
e r
3.3 Learning
i v
3.4 Theories of Learning
U n
3.5 Learning Organization
L ,
O
3.6 Attitude
3.7 Values
/ S
L
3.8 Values, Attitude and Behaviour
O
3.9 Emotions
/ C
C E
3.10 Emotional Intelligence
3.11 Components of EI
3.12 HowD

©D
to Improve Emotional Intelligence at the Workplace
3.13 Summary
3.14 Answers to In-Text Questions
3.15 Self-Assessment Questions
3.16 References
3.17 Suggested Readings

PAGE 53
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 3.1 Learning Objectives

At the end of this lesson, the student should be able to:
u Understand the concept of learning.
u Understand the theories of learning.
u Understand the concept of attitude.
u Understand the concept of values.
u Understand the concept of emotions.
h i
e l
3.2 Introduction
D
of
Individual behaviour is very complex to understand and the application of

ty
tools of organizational behaviour to modify individual behaviour are far more

i
complex. Therefore, before students jump on to understand different tools
s
r
and techniques of modifying individual and group behaviour at workplace,

e
v
they must have clear understanding of dynamics impacting individual

i
behaviour. This lesson illustrates different concepts that are related to the
n
U
factors affecting individual behaviour. The concept of learning, attitudes,

L ,
values and emotions establishes the foundation of human personality
and thereby, impacting the behaviour. Learning signifies change in one’s

O
internal state, which may lead to new permanent behaviours (for instance,
S
L /
learning a new skill like driving) or new comprehension and knowledge
(for example, a new subject area. When people learn specific behaviours,
O
they may not always have a deeper comprehension of the reasons behind
C
E /
them (for example, using a mobile phone without an understanding the

C
mechanics of technology used to build that mobile phone). By ascertaining

D
the benefits of learning, organisations have started to actively promote

©D
a learning culture and reap on the benefits of advancement and change.

3.3 Learning
The concept of learning plays an important role for developing human
nature. It helps an individual understand complex situations and respond
logically and rationally. It is a concept that shapes an individual’s skills,
lifestyle and thoughts. Learning can have lasting change in individual’s
behaviour caused by direct and indirect events. Learning as a concept is

54 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

quite often misunderstood as education and training; Whereas, education, Notes

training, practice and experiences are rather tools of learning that cause
permanent changes. Temporary change does not truly reflect learning
and eventually disappears. For instance, an employee out of the fear of
pay cut may become punctual at workplace but in personal life where
there is no fear of pay cut, he may not practice punctuality. This kind of
temporary change requires practice and experiences to intensify individual
learning process.
The Cambridge Dictionary defines learning as “the process of getting
h i
knowledge or a new skill”.
e l
According to E.R. Hilgard, “Learning is a relatively permanent change
D
of
in behaviour that occurs as a result of a prior experience”.

ty
Henry P. Smith defined learning as “…the acquisition of new behaviour

i
or the strengthening or weakening of old behaviour as the result of

s
r
experience”.

v e
3.3.1 Nature of Learning
n i
, U
Learning is basically the process of acquiring Knowledge, Skill, Ability

learning having distinctive features:

O L
(KSAs), etc. This gives a refreshing understanding to the process of

/ S
It is a universal concept which is experienced by all living beings.
L
u

O
u It is acquired through personal or impersonal experiences.
u

/ C
It is a continuous practice for modifying behaviour.
u

C E
It may imply improving behaviour in humans but behaviour may
also degrade.
D
©D
u It involves individuals to modify and adapt to distinct nature that
can be adjusted according to the situation.
u It brings relatively permanent change in individual behaviour.
u Change in behaviour is the result of experience, practice and/or
training.
u Experience or practice must be reinforced for learning to occur.
u Learning may not be directly observable.
u It is a tool for growth and development.

PAGE 55
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOURMBA

Notes 3.3.2
4.3.2 Types
Types of Learning
of Learning:

Motor Learning
Learning that require muscular coordination.
Walking, running, driving, eating, etc.

Verbal Learning
Individuals learn different languages.

i
Helps to communicate with others.

l h
Concept Learning

D e
Builds and develops mental framework in

of
individuals.
Thinking, reasoning, finding logic, etc.

Discrimination Learning
i ty
r s
Helps in distinguishing stimuli and identifying

e
suitable response to the stimuli.

v
Distinguishing among various animal sounds.

Learning of Principles
n i
, U Helps in building value system of individuals.
Learning to be honest, helpful, etc.

O L
/ S
Problem Solving

L
Application of concept learning in solving a

O
problem.

C
Finding shortest route to reach a destination.

/
CE
Attitude Learning
Developing a predisposition for directing

D
individual behaviour.

D
It can be both positive or negative.

© Fig 4.1: Types of LearningFigure 3.1: Types of Learning

3.3.3 Principles of Learning

82 | P a g e

© Department of Distance & Continuing Education, Campus of Open Learning,

The first three “Laws School
of learning” - readiness,
of Open Learning, exercise and effect were
University of Delhi

given by Edward Thorndike. Later, came the psychologists who recognized

several other principles/laws of learning which are generally applicable to

56 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

the learning process. These principles have been discovered, tested, and Notes
used in practical situations. They provide insight into what makes people
learn most effectively. We discuss these principles in brief hereunder:
Readiness: An individual must be ready or capable of learning. Since
learning is an active process, individuals must be adequately rested,
healthy, and physically able to learn. For example, securing good
grades in various subjects leads to mental and emotional readiness
of students to do more hard work in acquiring knowledge.

h i
l
Exercise: Learning continues as individuals practice more. Practice
involves recall, review and summary, and manual drill and physical

D
applications. All of these serve to create learning habits. For instance, e
of
to be a good doctor or lawyer, individuals have to practice their
profession.

i ty
Effect: An individual’s chance of success is definitely increased if

r s
the learning experience is a pleasant one. For instance, songs and

e
movie stories are remembered for years by an individual as watching
v
a movie is entertainment for the individual.
n i
U
Primacy: Learning must be facilitated in a logical order, step by

L ,
step, making sure the individuals have already learned the preceding
step. For instance, an individual is first oriented and then trained
on the job.
S O
L /
Recency: The principle of recency states that things learned recently

O
will be remembered most at a particular time. Conversely, the far an

C
individual is removed time-wise from a new fact or understanding,
/
E
the more difficult it is to remember things. For instance, an individual

D C
will remember what he/she wore yesterday than what he/she wore a
month or a year back.

©D
Intensity: A sharp, dramatic, clear, vivid, or exciting learning
experience creates an earning more than a routine or boring experience.
The principle of intensity implies that an individual will learn more
from the real-life experiences than from a substitute. For instance,
a toddler learns to walk after falling many times.
Freedom: The principle of freedom implies that learning should be
self-motivated and not forced upon an individual. Individuals must
have freedom of - choice, action, bear the results of action—imbibing

PAGE 57
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes personal responsibility. If no freedom is granted, individuals might

have little interest in learning.
Requirements: The principle of requirement implies that “one must
have something to obtain or do something”. It can be an ability, skill,
instrument or anything that may help individuals to learn or acquire
knowledge. For instance, in order to learn piano, an individual must
have availability of piano.

IN-TEXT QUESTIONS
h i
1. Which of the following is not a type of learning:
e l
(a) Attitude learning
D
(b) Concept learning
(c) Discrimination learning (d) Regular Learning
of
ty
2. Experience or practice must be ___________ for learning to
occur.
s i
e r
3. Learning requires pleasant experience. Which principle of learning
suggests that?
i v
n
4. Learning that promotes thinking and reasoning is __________
U
,
learning (concept, verbal).

O L
3.4 Theories of Learning
/ S
O
patternsL
Over the years, academicians have been focusing on describing different
Organizational Behaviour
and/or process through which learning occurs in an individual.

/ C
The four popular theories that offer explanation of how individuals acquire

C E
patterns of behaviour are explained below:

D D Theories of

©
Learning

Classical Operant Social Learning Cognitive

Conditioning Conditioning Learning

Figure 3.2: Theories of Learning

Fig 4.2: Theories of Learning
4.4.1 Classical Conditioning:
58 PAGE It is the process by which individuals learn reflex behaviour. A reflex is an
© Department of Distance
involuntary & Continuing
response Education,
that is not under Campus conscious
an individual’s of Open Learning,
control. Ivan Pavlov, is the
School of Open Learning, University of Delhi
brain behind the concept of classical conditioning. His famous experiment with dogs lays the
foundation of how classical conditioning works to produce desired behaviour among the
individuals.
While studying the digestion in dogs, Pavlov noted an interesting observation, i.e., his
 Learning, Attitudes, Values and Emotions

3.4.1 Classical Conditioning Notes

It is the process by which individuals learn reflex behaviour. A reflex is

an involuntary response that is not under an individual’s conscious control.
Ivan Pavlov, is the brain behind the concept of classical conditioning.
His famous experiment with dogs lays the foundation of how classical
conditioning works to produce desired behaviour among the individuals.
A stimulus creates a response. While initially a stimulus may not create
a response but if that stimulus is repeatedly used with another stimulus
h i
that creates response, the initial stimulus can also create a response. This
e l
D
is known as classical conditioning.

of
The stimulus and the response can be understand as follows:
1. Unconditioned Stimulus: The stimulus which is not conditioned and
creates a response naturally.
i ty
r s
For example, when one sees food, he naturally responds to it as

e
he wants to eat it. The stimulus is, thus, unconditioned, and the
v
response is also unconditioned.
n i
, U
2. Conditioned Stimulus: The stimulus which initially does not create
a response is conditioned in a way (using it with another stimulus

L
that creates response) that it creates a response. Stimulus is thus,
O
S
conditioned and the response is also conditioned.

L /
3. Unconditioned Response: It is the natural response created when a
person faces:

C O
E /
(a) Unconditioned stimulus, or
(b) Conditioned stimulus along with the unconditioned stimulus.

D C
4. Conditioned Response: It is the response or behaviour that is learnt

©D
or developed to a conditioned stimulus. It means a stimulus is
deliberately created to deliberately create a response.
These stimuli and responses can be understood through the experiment
conducted by a Russian Psychologist, Ivan Pavlov, who developed the
theory of classical conditioning.
Pavlov conducted an experiment on a dog. He studied the dog’s salivation
(amount of saliva created by the dog) – a response – on different stimuli
offered to him. The effect of presenting meat and ringing a bell (stimulus)

PAGE 59
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes was studied on the amount of saliva created by the dog (response). He
observed the following:
(a) When a piece of meat was presented to the dog, there was natural
increase in its salivation.
(Unconditioned Stimulus → Unconditioned Response).
(meat)
(b) When only a bell was rung, without presenting the meat, there was
no salivation.
h i
This is a situation of
e l
(Neutral stimulus → No response).
D
(Bell)
of
ty
Since Pavlov observed that a response (salivation) was created to

i
meat (stimulus) and not to the bell, he used the stimulus, bell,
s
r
repeatedly with the meat to create a response.
e
i v
(c) When ringing of the bell was repeatedly used with presenting the

U n
meat, but before offering the meat, the dog began to salivate because
the food was one of the stimuli.

L
This is situation of
,
O
(Conditioned stimulus + unconditioned stimulus → Unconditioned

S
(Bell) L /
Response).
(Meat)

C O
/
(d) After repeatedly ringing the bell with the food, Pavlov only rang

E
the bell without presenting the meat. Now the dog salivated to the

D C ringing of the bell.

This is a situation of

©D (Conditioned Stimulus) → Conditioned Response

(Bell) (Salivation)
Thus, the bell which had a neutral stimulus initially and created no
behaviour or response now had a conditioned response or behaviour. In
the new situation of learning, the dog became classically conditioned
to learn. A conditioned response (salvation or behaviour) was created
to a conditioned stimulus (sound of the bell).

60 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

u Unconditioned stimulus occurs naturally. Dog’s salvation to Notes

food was natural.
u Conditioned stimulus is created. Dog’s salivation only to the
bell without even offering the food was created.
The classical conditioning theory asserts that a previously neutral stimulus
which creates no response has the capacity to create a response, called
conditioned response.
To sum up the above observations,

h i
Before Conditioning
e l
D
u Unconditioned Stimulus → Unconditioned Response

of
(Meat) (Salivation)
u Neutral Stimulus → No Response
(Bell) (No Salivation)
i ty
During Conditioning
r s
Unconditioned Stimulus (Meat) + Unconditioned Response →
v e
i
u
Conditioned Stimulus (Bell) (Salivation)
After Conditioning
U n
L,
u Conditioned Stimulus → Conditioned Response MBA
(Bell) (Salivation)

S O
L /
Unconditioned Stimulus (Food) ------- Unconditioned Response (Salivation)
Neutral Stimulus (Metronome) ------- No Response
Before
Conditioning

C O
E /
C
Conditioned Stimulus (Metronome) + Unconditioned Stimulus (Food) --------
Unconditioned Response (Salivation)

D
During
D
Conditioning

© Conditioned Stimulus (Metronome) ------- Conditioned Response (Salivation)

After
Conditioning

Fig 4.3: ProcessFigure

of Classical
3.3:Conditioning
Process of Classical Conditioning
Thus, learning (conditioned response) can be induced under classical conditioning by
building an association between conditioned stimulus and unconditioned stimulus. This
happens quite often in real-life, for instance when a mock fire drill is organized at a school, PAGE 61
© Department
students are of Distance
taught to respond & Continuing
to the sound Education,
of a particular Campus
fire alarm. of Open
Thereby, Learning,
students
Schoolinoffuture.
become ready for any fire emergency Open Learning, University of Delhi

4.4.2 Operant Conditioning:

It refers to a process by which individuals learn voluntary behaviour. The theory argues that
behaviour is a function of its consequences. Individuals learn to behave to get something or to
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Thus, learning (conditioned response) can be induced under classical

conditioning by building an association between conditioned stimulus and
unconditioned stimulus. This happens quite often in real-life, for instance
when a mock fire drill is organized at a school, students are taught to
respond to the sound of a particular fire alarm. Thereby, students become
ready for any fire emergency in future.

3.4.2 Operant Conditioning

h i
l
It refers to a process by which individuals learn voluntary behaviour. The
e
D
theory argues that behaviour is a function of its consequences. Individuals

of
learn to behave to get something or to avoid something. For instance,
students reach to school on time to get attendance or to avoid missing on

ty
subject knowledge. B.F. Skinner, Harvard Psychologist is the brain behind

i
the development of theory of operant conditioning. Skinner suggested the
s
r
use of pleasant consequences to increase the frequency of good behaviour.

e
v
The individuals are more likely to repeat their good behaviour if they are

i
positively reinforced than not rewarded or worse, punished. For instance,
n
U
students with highest attendance, if awarded in school are likely to impact

L ,
students to be more regular than punishing them for their absence. In
organizational setting, giving more work to employees who finished their

O
tasks before deadline seems like a punishment for good behaviour. Next
S
/
time, the employees may delay the completion of assigned tasks.
L
O
Table 3.1: Examples of Classical and Operant Conditioning

/ C
Classical Conditioning

C E Stimulus
Is stuck by a pin
Response
Flinches

D Is tapped below the kneecap Flexes lower leg

©D
Is shocked by an electric current Screams
Operant Conditioning
Response Stimulus
Works Is paid
Sit on a table in restaurant Menu is presented
Increases productivity Incentivize

62 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

3.4.3 Social Learning Notes

Albert Bandura and others have extended the works of Skinner by

demonstrating that individuals can learn new behaviour by observing others
in social situations and then adopting or modelling that behaviour after
that of the others. This type of learning is coined as ‘Social Learning’,
i.e., learning from society. Individuals tend to behave the way they
see others behaving in their social circle. If the results of replicating
someone’s behaviour is positive, the behaviour is repeated; if the results
h i
are negative, the behaviour is not repeated. For instance, people indulge
in smoking by watching others and then quit as it links to cancer. Our
e l
D
of
learning from parents, teachers, managers, celebrities, and similar such
people influences our behaviour.

ty
The impact of models is fundamental to social learning. The following
processes determine the intensity of models over others’ behaviour:
s i
Attentional Process: Individuals learn from only those models
e r
v
MBA
i
whom they find attractive. For instance, celebrity’s outfits are often
duplicated by common people.
Attentional
Retention Process:
Process:Individuals
Individualslearnlearn
fromfrom
U n
only only
those those
modelsmodels
whom whose
they find

L ,
attractive. For instance, celebrity’s outfits are often duplicated by common people.
actions are remembered by the individuals. For instance, cricket lovers

O
Retention
rememberProcess:
SouravIndividuals
Ganguly’slearn
waving
from his jersey
only thoseinmodels
the Lord’s
whose stadium.
actions are

/ S
remembered by the individuals. For instance, cricket lovers remember Sourav
Motor Reproduction Process: Individuals learn from models when

L
Ganguly's waving his jersey in the Lord's stadium.
they replicate models’ behaviour immediately. For instance, while
motor Reproduction
watching a cooking
C O
Process:
show, Individuals
the recipelearn from onlyifthose
is learned youmodels when they
immediately

/
replicate models’ behaviour immediately. For instance, while watching a cooking show,
prepare it.
E
the recipe is learned if you immediately prepare it.

C
Reinforcement Process: Individuals exhibit model behaviour if they
Reinforcement Process: Individuals exhibit model behaviour if they are presented with
positive
D
are presented withFor
consequences. positive
instance,consequences. Forproductivity.
higher pay for higher instance, higher pay

©D
for higher productivity.

Figure
Fig 4.4: Model of Social 3.4: Model of Social Learning
Learning
4.4.4 Cognitive Learning:
The word "cognitive" is derived from the word "cognition," which refers to the capacity for
thinking, perception, memory, and problem-solving. On the other side, cognitive learning PAGE 63
© Department
theory emphasizes of Distance
on how human & Continuing
mind functions during Education,
the learningCampus
process. of Open Learning,
It focuses on
School of Open Learning, University of Delhi
how the brain interprets information and investigates how learning takes place. “Cognitive
learning” is thinking about the perceived relationship between events and individual’s goals
and expectations”. It involves selective interpretation of perceived data organized into
patterns of thoughts and relationships. For instance, the leadership theories explain how a
manager is perceived as a leader. They become leaders by showing some traits for good role
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 3.4.4 Cognitive Learning

The word “cognitive” is derived from the word “cognition,” which refers
to the capacity for thinking, perception, memory and problem-solving.
On the other side, cognitive learning theory emphasizes on how human
mind functions during the learning process. It focuses on how the brain
interprets information and investigates how learning takes place. “Cognitive
learning” is thinking about the perceived relationship between events and
individual’s goals and expectations”. It involves selective interpretation
h i
of perceived data organized into patterns of thoughts and relationships.
e
For instance, the leadership theories explain how a manager is perceived l
D
of
as a leader. They become leaders by showing some traits for good role
models. Cognitive theory of learning suggests that an individual creates

ty
a cognitive structure in memory which records and organizes information

i
about various activities that occur in a learning situation.
s
r
Table 3.2: Types of Cognitive Learning

e
Types of Cognitive
i v
Meaning Example

n
Learning
Intuition Learning

, U
Focus on bigger picture and
creativity
Application of acquired
knowledge
Introversion Learning

O L Thought oriented, enjoys deep

and meaningful conversations
Book reading clubs,
Group Discussions

/ S
Extraversion Learning Action oriented learning and Playing guitar, sports

L enjoys socializing

CO
Sensing Learning Relies on historical data to Keeping umbrella handy

E / evaluate a situation and develop

solutions
in rainy season

D C Feeling Learning Decision making based on

personal values
Creating your own
lifestyle

© D 3.4.5 Reinforcement
The operant conditioning is based on the law of effect as given by
Edward Thorndike. The law of effect states that the behaviour with
rewarding consequences is likely to be repeated; while behaviour with
negative consequences is not likely to be repeated. This law serves as
the foundation of reinforcement theory. Reinforcement is the core of the

64 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

learning process. Reinforcement can be defined as anything that strengthens Notes

a response and/or tends to increase its frequency. There are four types
of reinforcement strategies.
Table 3.3: Strategies of Reinforcement
Motive Reinforcement Meaning Example
Strategy
Encourage Positive Pleasant consequence Incentive for higher

i
desirable Reinforcement for desired behaviourproductivity

h
behaviour Negative

l
Removal of undesirable
Supervisor stops

e
Reinforcement consequence criticizing when

D
employees meet their

of
standards.
Discourage Extinction Removal of desirable Isolating a disruptive

ty
undesirable consequence employee from the team
behaviour Punishment Placing undesirable
i
Pay cut for being late

s
r
consequence at work

v e
Reinforcement does not guarantee a particular response as individuals are

n i
dynamic. For instance, studying hard may not always yield good grades.

U
Many times, the presence or absence of reinforcers may bring in random

L ,
responses. Thereby, they need to be governed by rules.
These rules are known as schedules of reinforcement. These schedules

S O
explain how often a reinforcer must be present or absent to bring in
desired responses.
L /
O
Table 3.4: Schedules of Reinforcement

C
Schedule
Continuous
E /
Nature
Reward after each
Effect on Behaviour
Fast learning but rapid
Example
Compliments

D C
desired behaviour
Fixed-Interval Reward after fixed
extinction of behaviour
Irregular performance with Weekly pay-out

©D
time intervals rapid extinction
Variable- Reward after variable Above average performance Pop quizzes
Interval intervals with slow extinction
Fixed Ratio Reward at fixed High performance with Piece-rate pay
amount of output rapid extinction
Variable Ratio Reward at variable Very high Performance Commission
amount of output with slow extinction based sales
(Source: Robbins Stephen P and Judge T.A., Vohra, Organisational
Behaviour, 16th Ed. Pearson.)

PAGE 65
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 3.5 Learning Organization

A learning organization is an organization that has developed the continuous
capacity to adapt and change. As individual learns, so do organizations.
Continuous learning is a fundamental requirement for ensuring sustainability
of businesses. Chris Argyris and his associates, developed two types of
learning organizations:
(a) Single-loop learning involving measures to improve the organization’s

h
ability to achieve desired goals. It requires routine behavioural
i
learning.
e l
D
(b) Double-loop learning involves reworking on the organizational goals,

of
policies and strategies to adapt a new organizational culture.
The fundamentals of learning organization are –

i ty
In a learning organization, there is a shared vision that can emerge
s
u

e r
from many places but the top management is responsible for ensuring
that the vision exists and is nurtured.

i v
n
u Ideas are formulated and implemented at all levels of organizations.
u

, U
Employees understand their own jobs as well as the way in which
their own work inter-relates with and influences that of other
employees.
O L
u

/ S
Conflicts are resolved using collaborative learning and the integration

O L
of diverse opinions of employees throughout organization.
The role of the leader is to empower employees, inspire commitment,
C
u

E / and encourage effective decision-making throughout the enterprise

through empowerment and charismatic leadership.

D C An organization can be transformed into a learning organization by

©D
adopting three-step process – establishing a strategy for continuous
improvement; redesigning organization structure; and reshaping
organizational culture.

66 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBA

An organization can be transformed into a learning organization by adopting to three-step

process – establishing a strategy for continuous improvement; redesigning organization
Learning,
structure; Attitudes,
and reshaping Values and
organizational Emotions
culture.

Notes
Presence of Tension
Gap between vision and
reality Questioning
Challenging status quo
Critical reflection

Systems Thinking

h i
Shared vision
Holistic thinking Learning
Culture Facilitating
Learning
e l
D
Openness Suggestions
Organization

of
Teamwork
Empowerment
Empathy

i ty
r s
Figure 3.5: Characteristics of Learning Organization
v e
i
Fig 4.5: Characteristics of Learning Organization (Source: Luthans, F. (2011). Organizational
(Source: Luthans, F. (2011). Organizational Behaviour: An Evidence –

n
Behavior: An Evidence – Based Approach, McGraw Hill Education)
Based Approach, McGraw Hill Education)

IN-TEXT QUESTIONS
, U
L
IN-TEXT
4. AccordingQUESTIONS
to Skinnerian Operant conditioning theory, a negative

O
reinforcement is:
5. (a)According to Skinnerian Operant conditioning theory, a negative
Nothing but punishment
(b) A biofeedback
reinforcement is:
/ S
L
(c) A withdrawing or removal of a positive reinforcer
(d) An instinctive drift
(a)schedule
Nothing but punishment
O
5. Which of reinforcement is a ratio schedule stating a ratio of responses

C
to rein•forcements?
(b) A Ratio
biofeedback
/
(a) Variable Schedule (b) Fixed Interval Schedule

E
(c) Variable Interval Schedule (d) Fixed Ratio Schedule
(c) A withdrawing or removal of a positive reinforcer

D C
(d) An instinctive drift

©D
6. Which schedule of reinforcement is a ratio schedule stating a
92 | P a g e
ratio of responses to reinforcements?
(a) Variable Ratio Schedule
© Department of Distance & Continuing Education, Campus of Open Learning,
(b) Fixed Interval Schedule
School of Open Learning, University of Delhi

(c) Variable Interval Schedule

(d) Fixed Ratio Schedule

PAGE 67
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes CASE STUDY

Learning Organization - Ford
Ford used the accounts payable prior to installation. The initial
purchase order for raw materials is sent by Ford’s purchasing
department. Additionally, a copy of the purchase order is forwarded
to the accounts payable division. The vendor raises an invoice for
the accounts payable division after delivering the raw supplies. The
accounts payable division totals the purchase order, the items that
h i
have been received, and the invoices before paying the supplier.
e
While Mazda, a Japanese automaker competitor, managed the same l
D
of
procedure with 100 workers—a surprisingly low number of employees
even when the magnitude of the operation is taken into account—Ford

ty
used roughly 500 individuals to handle the entire process.

s i
Instead of tinkering with the company procedures just slightly. Ford

r
made the decision to employ IT to drastically alter its accounts payable
e
v
procedure. A mechanism without invoices has been put in place. The

n i
departments responsible for purchasing will create the purchase order

, U
and update the database. The payment will be made without waiting
for the vendor to send an invoice as soon as the materials have been

L
received and a warehouse worker updates the materials received.
O
/ S
L
3.6 Attitude

C O
Evaluative remarks regarding things, people, or events are called attitudes.

E /
It can be positive, neutral or negative. They are a reflection of one’s

C
feelings. If an individual says that “I like my job” that describes how

D the individual feel about his/her job. Attitudes are intricate. In order to

©D
comprehend, individuals must take into account the underlying components
of attitude. There are three important components of attitude as - cognition,
affect, and behaviour which are closely related.

68 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions MBA

Notes
Cognitive = Evaluation
My supervisor gave a promotion
to a coworker who deserved it
less than me. My supervisor is unfair.

Negative

h i
attitude

e l
D
toward

of
supervisor
Behavioral = Action
Affective = Feeling
I’m looking for other work; I’ve

ty
I dislike my complained about my supervisor

i
supervisor! to anyone who would listen.

r s
Figure 3.6:
Fig 4.6: Components of Attitudes Components
(Source: Robbins of Attitudes
Stephen P and Judge T.A., Vohra,
v e
(Source: Robbins Stephen P and
Organisational Behaviour, 16th Ed. Pearson.) Judge T.A., Vohra,
Behaviour, 16th Ed. Pearson.)
Organisational

n i
Characteristics of attitude:
Characteristics of Attitude:
, U
L
● Attitude may be fluctuating. An individual may dislike something at first then
u Attitude may be fluctuating. An individual may dislike something

O
like same thing later.
at first then like same thing later.
●
/ S
Attitudes are intangible psychological phenomenon.

L
u Attitudes are intangible psychological phenomenon.
● Attitudes toward something are acquired over a period gradually.
u
●
C O
Attitudes are acquired over a period gradually.
Attitudes are built in the process of socializing.
u
●
E /
Attitudes are built in the process of socializing.
Attitudes help in adjusting to a new environment. With positive attitude

C
u Attitudes
individualshelp in adjusting
can welcome to instead
changes a newofenvironment.
resisting. With positive

D
attitude individuals can welcome changes instead of resisting.

©D
● Individuals build attitudes to create their self-image. Attitudes help in
u Individuals
expression ofbuild
one’sattitudes to create their self-image. Attitudes help
value system.
in expression of one’s value system.
● An ambitious person will have a positive attitude for the job instead of
u An ambitiousabout
complaining person will day.
it whole have a positive attitude for the job instead
of complaining about it whole day.
● Knowledge can be substituted by the attitudes. For instance, people stereotype
u Knowledge
about others can belack
due to substituted byinformation
of personal the attitudes. For
about instance, people
them.
stereotype about others due to lack of personal information about
them.
94 | P a g e

© Department of Distance & Continuing Education, Campus of Open Learning,

School of Open Learning, University of Delhi
PAGE 69
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Organizational Behaviour
Notes 3.6.1 Measurement of Attitude

4.6.1 The attitudes ofofindividuals

measurement Attitude though stable in a shorter duration, might be
modified over a period of time. Minor changes in individual’s attitude
The attitudes of individuals
are inevitable though stable
and normal whichinmakes
a shorter
theduration, mightdynamic.
behaviour be modified
Forover a
period of time. Minor changes in individual’s attitude is inevitable and normal which makes
instance, an irregular student becomes regular and punctual realizing
the behavior dynamic. For instance, an irregular student becomes regular and punctual
the positive aspects of getting up early in the morning. There are many
realizing the positive aspects of getting early up in the morning. There are many ways of
ways of measuring such changes in individual’s attitude. Few of them

i
measuring such changes in individual’s attitude. Few of them are presented hereunder:
are presented hereunder:

l h
D e
of
i ty
r s
v e
n i
, U
O L
/ S
O L
/ C
C E
D
©D

Fig 4.7: Tools for Measuring

FigureAttitude
3.7: Tools for Measuring Attitude

4.6.2 Formation of Attitude:

70 PAGE 95 | P a g e
© Department of Distance & Continuing Education, Campus of Open Learning,
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

3.6.2 Formation of Attitude Notes

Individuals form positive, neutral and/or negative attitude towards something

depending on various factors:
Psychological factors: It includes ideas, beliefs, perception, values,
information, etc. For instance, if an employee perceives hard work
will yield rewards, he will have positive attitude towards job.

i
Family: An individual is well influenced by the family as he/she
spends major time of childhood with the family instilling ready-made
l h
attitudes of the family members. Family is involved in decision-
making towards education, job, religion, economic conditions, etc.
D e
of
For instance, an individual with low income family will develop a
saving attitude towards money.

i ty
Society: Society creates the circle of tradition and culture around

r s
the individual, influencing the attitude. For instance, the attitude of

e
Japanese people towards their job is critically different from that of

v
work as honourable.
n i
Americans. Japanese employees are better adjusted to the notion of

, U
Political factors: Ideologies of the political parties, and leaders

O L
greatly affect an individual’s attitude. For instance, an individual
from any communist party may oppose liberal democracy.

/ S
Organisational factors: During the adulthood, individuals spend most

O L
of their time in the organization they work for. They collectively,

C
not just form the organizational culture but influence each other’s

E /
attitude as well. For instance, a nurturing culture in the organization

C
may influence their employees towards personal development by

D
providing opportunities to learn new things and grow professionally.

©D
Such practices develop good attitude towards organization and job.
Economic factors: Economic conditions of an individual affect
spending capability of individuals that may develop negative attitude
toward individual spending lavishly on leisure.

PAGE 71
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes
Psychological
Factors

Political Family
Factors

How people
form Attitudes?

h i
l
Economic

e
Factors Society

D
of
Organization

i ty
Figure 3.8: Formation of Attitudes

r s
3.6.3 Job Related Attitudes
v e
n i
In the study of Organization Behaviour (OB) people focus more on
U
job-related attitudes. These are positive or negative evaluations that
,
L
employees hold about aspects of their job environments. Most of the

O
research in OB has looked at three job related attitudes: Job satisfaction,

/ S
job involvement, and organizational commitment. A few other important

O L
attitudes are perceived organizational support and employee engagement:
(a) Job Satisfaction: A positive feeling about one’s job resulting from

/ C
an evaluation of its characteristics.

CE
(b) Job Involvement: The degree to which a person identifies with a

D D job, actively participates in it, and considers performance important

to self-worth.

© (c) Psychological Empowerment: Employees’ belief in the degree

to which they affect their work environment, their competence,
meaningfulness of their job, and perceived autonomy in their work.
(d) Organizational Commitment: The degree to which an employee
identifies with a particular organization and its goals and wishes
to maintain membership in the organization.

72 PAGE
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 Learning, Attitudes, Values and Emotions

(e) Perceived Organizational Support: The degree to which employees Notes

believe an organization values their contribution and cares about
their well-being.
(f) Employee Engagement: An individual’s involvement with, satisfaction
with, and enthusiasm for the work he or she does.
There is some distinctiveness among attitudes, but they overlap greatly for
various reasons, including the employee’s personality. If a manager knows

i
someone’s level of job satisfaction, he knows most of what employees
need to know about how that employee sees the organization. Researches
l h
suggests that managers tend to identify their employees as belonging to
one of four distinct categories: Enthusiastic stayers, reluctant stayers,
D e
of
enthusiastic leavers (planning to leave), and reluctant leavers (not planning
to leave but should leave).

i ty
3.6.4 Cognitive Dissonance
r s
v e
i
In the late 1960s, a review of the research challenged the assumed effect

U n
of attitudes on behaviour. One researcher—Leon Festinger—argued that
attitudes follow behaviour. He observed that individuals change what they

L ,
say, so that it doesn’t contradict what they do. For instance, individuals

O
criticize a political party and then praise the political party if any policy is

/ S
released that is in favour of the individual. Festinger suggested that cases

O L
of attitude following behaviour prove the effects of cognitive dissonance.
It is any incompatibility an individual might perceive between two or

/ C
more attitudes or between behaviour and attitudes. Festinger argued

C E
that any form of contradiction is uncomfortable and individuals will,
therefore, attempt to reduce it. They will pursue a stable state, which is

D
of minimum dissonance. Research has suggested that individuals do seek

©D
consistency among their attitudes and between their attitudes and their
behaviour. They either change the attitudes or the behaviour, or they
develop a rationalization for the inconsistency. According to a study, for
instance, attitudes of employees who had experienced difficult, emotionally
challenging work events improved after they talked about their experiences
with co-workers. Social sharing helped these workers adjust their attitudes
to behavioral expectations. No individual, of course, can completely avoid
dissonance. Individuals know evading income tax is wrong, but they fudge

PAGE 73
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes the numbers a bit every year and hope they are not audited. Festinger
proposed that the desire to reduce dissonance depends on three factors,
including the importance of the elements creating it and the degree of
influence individuals believe they have over them. Individuals will be
more motivated to reduce dissonance when the attitudes are important or
when they believe the dissonance is due to something they can control.
The third factor is the rewards of dissonance; high rewards accompanying
high dissonance tend to reduce the tension inherent in the dissonance (the
dissonance is less distressing if accompanied by something good, such
h i
as a higher pay raise than expected).
e l
D
of
IN-TEXT QUESTIONS
7. The defining characteristic of ___________ is that they express

ty
an evaluation of some object.
(a) Beliefs
s i
(b) Attitudes
(c) Interaction
e r
(d) Perception

i v
8. Bob cooks for his girlfriend; it’s his way of showing her he

U n
cares about her. His cooking is an example of:

L,
(a) Dissonance (b) A terminal value

O
(c) A relational currency (d) Self-promotion

3.7 Values/ S
O L
/ C
Values represent the fundamental convictions that “a specific mode of

C E
conduct or end-state of existence is personally or socially preferable to an
opposite or converse mode of conduct or end-state of existence.” Values

D D have a judgmental element because they carry people’s ideas about right,
good, or desirable. They have both content and intensity qualities. The
© content characteristic says a code of conduct or end-state of existence is
vital. The intensity characteristic specifies the extent of importance of
end-state of existence. When people rank values in terms of intensity,
they obtain that person’s value system. Everyone has a hierarchy of
values according to the relative significance they assign to values such
as freedom, honesty, obedience, pleasure, self-respect and equality.

74 PAGE
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School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

The basic characteristics of values are: Notes

u They are relatively stable and enduring.
u People start establishing their value system in the early years—by
parents, teachers, friends and others.
u They reflect standards of human behaviour.

ORGANIZATIONAL VALUES – EXAMPLE OF TATA

Business, as I have seen it, places one great demand on you: It
h i
needs you to self-impose a framework of ethics, values, fairness and
e l
D
objectivity on yourself at all times. - Ratan N Tata, 2006. Tata has

of
always been a values-driven organisation. These values continue to
direct the growth and business of Tata companies.

ty
The five core Tata values underpinning the way we do business are:

s i
Integrity: We will be fair, honest, transparent and ethical in our

e r
conduct; everything we do must stand the test of public scrutiny.

i v
Responsibility: We will integrate environmental and social principles

n
in our businesses, ensuring that what comes from the people goes
U
,
back to the people many times over.

O L
Excellence: We will be passionate about achieving the highest
standards of quality, always promoting meritocracy.

/ S
Pioneering: We will be bold and agile, courageously taking on

O L
challenges, using deep customer insight to develop innovative solutions.

/ C
Unity: We will invest in our people and partners, enable continuous

C E
learning, and build caring and collaborative relationships based on
trust and mutual respect.

D
©D
Source: Organizational Values – Example of Tata (https://www.tata.
com/about- us/tata-values-purpose)
Table 3.5: Dominant Work Values in Today’s Workforce
Cohort Entered the Workforce Dominant Work Values
Boomers 1965–1985 Success, achievement, ambition, dislike
of authority; loyalty to career
Xers 1985–2000 Work/life balance, team-oriented, dislike
of rules; loyalty to relationships

PAGE 75
© Department of Distance & Continuing Education, Campus of Open Learning,
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Cohort Entered the Workforce Dominant Work Values

Millennials 2000 to present Confident, financial success, self reliant
but team-oriented; loyalty to both self
and relationships
(Source: Robbins Stephen P and Judge T.A., Vohra,
Organisational Behaviour, 16th Ed. Pearson.)

3.7.1 Types of Values

h i
Values.
e l
Broadly speaking, there are two types of values - Terminal and Instrumental

D
of
Table 3.6: Types of Values
Terminal Values Instrumental Values

ty
Desirable end-states of existence; Preferable modes of behaviour or
the goals a person would like to
s i
means of achieving one’s terminal
achieve during his or her lifetime.
r
values.
e
v
Comfortable life Ambition
Sense of accomplishment
n i Courage
Self-respect

, U Honesty

L
Wisdom Independence

O
(Source: Robbins Stephen P and Judge T.A., Vohra,

S
/
Organisational Behaviour, 16th Ed. Pearson.)

L
All port and his associates have identified six types of values –
O
C
Theoretical: Interests that develop reasoning and systematic thinking.

E /
Economic: Interests in accumulation of wealth.

D C Aesthetic: Interests in beauty and artistic harmony.

©D
Social: Interest in people and relationships.
Political: Interest in acquiring power and leading others.
Religious: Interest in understanding the cosmos of whole.

3.7.2 Formation of Values

A person sources his/her value system from the diverse components of
their environment such as –

76 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
Learning, Attitudes, Values and Emotions

Family: Family is the prime and most important source of obtaining Notes
values. Children learn some values from his/her family since the
childhood and retains those values in their mind throughout their
life. The ways the parents nurture, educate and raise their children
shape their personality and inculcate values in them.
Society: Society plays major role in developing value system of
people. Children learn basic manners and discipline from their
teachers. Teachers play a pivotal role in developing value system in
individuals. Besides schools and colleges, other groups of society
h i
such as religious groups, economic and political groups to which
e l
people belong also affect their value system.
D
of
Personal factors: Personal characteristics like intelligence, ability,
appearance and education level of a person determines his value

i
system very strongly. For example, an intelligent and educated
ty
s
person will understand and learn the social and work-related values
r
relatively faster than the uneducated person.

v e
n i
Culture: Cultural factors which influence value system of an
individual include norms, beliefs and other behaviour patterns which

, U
are preferred and acceptable by the society. These values are often

O L
carried in rituals, customs or narratives that are often repeated and
highly resistant to change because they are seen as absolute.

/ S
Religion: Religion is comprised of set of values and traditions
L
which guide routine behaviour and decision making of an individual.
O
C
Religious values help people determine what is good or bad.

E /
Life experiences: One learns most from own experiences and

D C
sometimes from experiences of others too. The values which an
individual learns from own experiences of life are relatively long

©D
lasting and difficult to change.
Role demands: Role demand refers to the behaviour associated
with the particular position or role profile in an organisation. Every
individual plays multiple roles in life. The problem occurs when
there is a role conflict. In such case, individuals quickly learn the
value system prevailing in the organisation so that they may survive
and progress in the same organisation.

PAGE 77
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organizational Behaviour

Role demands – Role demand refers to the behaviour which is associated with the
MBAFT
particular position or role profile in 6101 ORGANIZATIONAL
an organisation. BEHAVIOUR
Every individual play multiple
roles in life. The problem occurs when there is a role conflict. In such case,
individuals quickly learn the value system prevailing in the organisation so that they
Notes Constitution: Almost, all the existing constitutions of various countries
may survive and progress in the same organisation.
highlight the values of democracy, equality and world peace. The
Constitution
values enshrined in the
– Almost, Constitution
all the of India of
existing constitutions arevarious
statedcountries
in its Preamble
highlight the
values of democracy,
as Justice, equality and
Liberty, Equality world and
of status peace. The valuesand
opportunity enshrined in the
Fraternity.
Constitution of India are stated in its Preamble are Justice, Liberty, Equality of status
and opportunity and Fraternity. Herein, justice occupies the first place, followed by
3.8 Values,
liberty, equality.Attitude and Behaviour

The difference between values and attitudes is firstly that while values are

i
4.8 VALUES, ATTITUDE AND BEHAVIOUR
always positive (i.e. expressing preferences), attitudes can be both positive
and negative. Secondly, values are general, but attitudes are specific and
l h
(i.e.can vary from
expressing object to
preferences), object.
attitudes canItbeisboth
alsopositive
believed
D e
The difference between values and attitudes is firstly that while values are always positive
that attitudes
and negative. are values
Secondly, more are

of
apt tobutchange
general, attitudesthan values.andBehaviour
are specific can vary from depends
object toonobject.
underlying
It is alsoattitudes,
believed that
but is also affected by many other things like opportunities to act,
attitudes are more apt to change than values. Behaviour depends on underlying attitudes, norms,but

ty
expected
is also affectedconsequences etc. like
by many other things Therefore, the tolink
opportunities between
act, norms, attitudes
expected and
consequences
etc.behaviour is link
Therefore, the not between
direct. attitudes
The characteristics
i
and behaviour isand

s
relationships
not direct. betweenand
The characteristics

r
relationships
individualbetween individual
values, attitudesvalues,
andattitudes and behaviour
behaviour are presented
are presented hereunder:
hereunder:

v e
n i
, U
O L
/ S
O L
/ C
C E
Fig 4.9: The 3.9:
Figure
(2022). (Source:
relationship
Management
among Values,
The relationship
by values:
Jaakson,
amongAttitudes
the analysis
K. (2022).
andAttitudes
Values, Behaviourand
of influencing
Management
(Source:
aspectsThe
by values: andanalysis
Jaakson, K.
Behaviour
its theoretical
of and

D practical implications.)
influencing aspects and its theoretical and practical implications.)

©D
Although Collins and Porras (1994) are of the opinion that mere articulation
of values increases the likelihood of values-based behaviour, there has
103 | P a g e
to be support via organisational systems as well. Basically, there are
two paths©for
Department of Distance & Continuing Education, Campus of Open Learning,
organisational support of values-based behaviour. The first
School of Open Learning, University of Delhi
option is having the people with the “right” attitude who are naturally
inclined to behave in the desired way. Stackman et al., (2000) maintain
that values are key determinants of employee attitudes, which in turn
affect work-related behaviour. This is to say that values do not affect

78 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

behaviour directly, but via attitudes, which are defined as “dispositions Notes
to respond favourably or unfavourably to an object, person, institution
or event” (Ajzen, 2005: 3).

3.9 Emotions
The root of the word emotion comes from a French term meaning “to
stir up.” And that’s a great place to begin our investigation of emotions
at work. Emotions are intense feelings directed at someone or something.
h i
They are reactions to a person (seeing a friend at work may make you
e l
D
feel glad) or an event (dealing with a rude client may make you feel

of
frustrated). They are also useful for creative tasks, because positive people
tend to be more creative and open to new ideas. In addition to helping

ty
with employee creativity, companies such as Microsoft Corporation often

i
want to understand which features of their products produce not just high
s
r
ratings for usability but also high emotional ratings. Individuals with

e
v
strong positive emotional reactions are more likely to use their product

n i
and recommend it to others (Weler, 2008). This is something Apple Inc.

U
has been known for doing well, as their products tend to evoke strong

Characteristics of Emotions:
L ,
positive emotions and loyalty from their users.

S O
/
u Emotions accompany Instincts: For instance fear is associated

O L
with the instinct of escape, in a situation which is considered by
an individual as dangerous.
u
/ C
Emotions are primary or secondary: For instance resentment,

C
(primary).E
indignation, sullenness, rage and fury are the variations of anger

D
©D
u Emotions are subjective: These are, in reality, personal experiences.
u External situations produce emotions: An external situation like
thunder engenders fear in the mind of the individual.
u Emotions are complex affective states: It includes cognition to
the extent that the individual experiences emotion only after he
recognises a particular situation.
u There is a wide range and wide degree of emotions.

PAGE 79
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organizational Behaviour
MBAFT 6101 ORGANIZATIONAL BEHAVIOUR
● Emotions are complex affective states: It includes cognition to the extent that the
individual experiences emotion only after he recognises a particular situation.
Notes u Reasoning and emotion: Reasoning provides a check on emotional
● There is a wide
upsurge. Therange and wide degree
emotional of emotions.
response is weakened by the application of
● intellect.and emotion: Reasoning provides a check on emotional upsurge. The
Reasoning
emotional response is weakened by the application of intellect.

4.9.13.9.1 Types
Types of of
Emotions: Emotions
There are few attributes more core and universal to the human experience than the emotions.
There are few attributes more core and universal to the human experience
Of course, the broad spectrum of emotions humans are capable of experiencing can be
than the emotions. Of course, the broad spectrum of emotions humans

i
difficult to articulate.
are capable of experiencing can be difficult to articulate.

l h
D e
of
i ty
r s
v e
n i
, U
O L
/ S Figure 3.10: Types of Emotions
Fig 4.9: Types of Emotions (Source: Adapted from H. M. Weiss and R. Cropanzano,
(Source:
“Affective

O L
EventsAdapted
Events Theory,”
Organizational
Theory,”from
Behavior,inVol.
in B.H.M.
B. 18,
M. JAI
M.Staw
Staw
Weissandand
L. R.
andGreenwich,
Press,
L. Cropanzano,
L. L. Cummings (Eds.),
Conn., 1996,
“Affective
Cummings (Eds.), Research in
Research
pp. 20–22 in
and Daniel
Goleman,
/ C
Organizational Behaviour, Bantam
Emotional Intelligence, Vol. 18,Books,
JAI Press,
New York,Greenwich, Conn., 1996, pp.
1995, pp. 289–290.)

E
20–22 and Daniel Goleman, Emotional Intelligence, Bantam Books, New
The workplace contains a wide variety of emotions. Furthermore, it is probably not

D C The workplace
personal contains
ones, are based
York, 1995, pp. 289–290.)
overstatement to say that many administrative and organisational decisions, as well as most
more onaemotions
wide variety of emotions.
than on rational Furthermore,
cognitive processes. it is
For instance,

©D
rather than what is logically best for one's profession, career decisions
probably not overstatement to say that many administrative and organisational are frequently
dependent on feelings of satisfaction, affection, or even fear. In reality, rather than being
decisions, as well as most personal ones, are based more on emotions than
105 | P a g e
on rational cognitive processes. For instance, rather than what is logically
© Department of Distance & Continuing Education, Campus of Open Learning,
best for one’s profession, career decisions are frequently dependent on
School of Open Learning, University of Delhi
feelings of satisfaction, affection or even fear. In reality, rather than being
influenced by factors like marginal costs, return on investment, or other
considerations that the classic rational economic/finance models would
predict, management decisions are frequently motivated by unpleasant
emotions like fear or rage.
80 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

3.9.2 Sources of Emotions Notes

Emotions emerge from a wide range of sources:

(a) Personality: Every person has a natural tendency to experience some
moods and feelings more frequently than others. We also differ in
how strongly we feel the same emotion; people who are affectively
intense feel both positive and negative emotions and moods more
strongly.

h i
l
(b) Day of the week or time of the day: People are typically at their
worst early in the week and at their best late in the week. As people
tend to avoid delivering unpleasant news or request favours on a
D e
of
monday morning.
(c) Stress: The emotions and moods can suffer from stress. The

i ty
consequences accumulate over time, and ongoing stress can make
our moods and emotions worse.
r s
e
(d) Social activities: For the majority of people, social activities boost
v
i
emotions and have minimal impact on negative emotions. A positive
n
U
emotion encourages social contact.

L ,
(e) Lifestyle Factors: Sleep quality does affect emotions. People are more
prone to experience tiredness, rage, and aggression when they are

S O
exhausted, which can affect decision-making and make it challenging

/
to control emotions. Another factor be exercise that enhances our
L
O
positive emotions. This is especially good for depressed people.

/ C
(f) Demographic Factors: As people age, negative feelings tend to

C E
happen less frequently. Highly happy emotions linger longer in
elderly persons, but negative emotions pass more swiftly in older

D
people. With age, emotional experience gets better. Moreover, men

©D
are less demonstrative in their emotions than women are. Compared
to males, they feel them more strongly and hang onto them for
longer. Except for rage, they express both pleasant and negative
emotions more frequently. This is so because men are drilled to be
courageous and tough. Women exhibit greater good moods because
they are social and nurturing.

PAGE 81
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes IN-TEXT QUESTIONS

9. The link between attitudes and behaviour:
(a) Direct
(b) Not direct
(c) Neutral
(d) Does not occur
10. Emotions are:
h i
e l
(a) Objective responses to experiences in our environment

D
(b) Subjective responses to experiences in our environment

of
(c) Physiological changes to experiences in our environment

ty
(d) Behavioural changes to experiences in our environment

s i
11. Which of these supports the James-Lange theory of emotion?

e r
(a) Emotion is a visceral response producing a behavioural
response
i v
U
produce emotion
n
(b) Artificial induction of visceral changes does not necessarily

L ,
(c) The viscera are ‘insensitive structures’

S O
(d) Visceral changes are the same in many emotions

L /
C O
3.9.3 James-Lange Theory

E /
The James-Lange hypothesis of emotion, put out independently by

D C psychologist William James and physiologist Carl Lange, postulated that

feelings are the product of bodily responses to experiences. To put it

© D another way, this theory contends that people’s physiological reactions

to environmental stimuli are interpreted by them to produce emotional
experiences. This idea holds that seeing an external stimulus causes a
physiological reaction. How people perceive those physical responses will
determine the emotional response. Imagine an individual is out for a walk
in the woods when the individual spots a grizzly bear. The individual’s
heart starts to beat quickly, and the starts to quiver. According to the
James-Lange theory, the individual will perceive his physical responses
as signs of fear (“I am shaking. I’m afraid as a result”).

82 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Learning, Attitudes, Values and Emotions

The conventional wisdom prior to the James-Lange theory held that Notes
people’s initial response to perception was cognitive. Then, in response
to that idea, physical responses took place. Instead, the James-Lange
method proposed that these physiological reactions take place first and
are crucial to the sense of emotion. The hypothesis had a significant
impact on psychology and our understanding of emotions, even though
it may appear like a minor distinction in the course of events. Though
widely accepted, not everyone concurred that emotions were triggered
by physical reactions.
h i
e l
3.10 Emotional Intelligence
D
of
The term ‘emotional intelligence’ was first popularized by Daniel Goleman

ty
which later became an important study on self-management and social
relationships.
s i
r
“Emotional intelligence (EI) describes a person’s ability to identify,
e
v
understand, manage, and harness their own emotions and those of the
i
n
people around them. EI is a vital skill for interpersonal communication

the workplace”.
, U
and has become an area of interest across multiple disciplines, including

O L
A workforce that has emotionally intelligent individuals improves

/ S
relationships within the team and promotes a positive work culture.

O L
Individuals better understand themselves, and develop the skills needed
to guide future thought processes and actions.

/ C
Emotional intelligence as the “ability to understand and manage men

Thorndike.
C E
and women, boys and girls, to act wisely in human relations.” Professor

D
©D
As per Gardner and Qualter, there can be interpersonal intelligence and
intrapersonal intelligence. Interpersonal intelligence is the ability to
understand the perception and desires of other people and intrapersonal
intelligence is the capability to control and understand oneself.
In the contemporary organizational culture built on effective communication,
open channels of feedback, interdependence, collaboration, and teamwork,
managers use EI to engage with their co-workers and understand how
they feel about work and the work style.

PAGE 83
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Emotional intelligence relates to the ability to monitor one’s own and
other people’s emotions. It is the ability to discriminate between different
emotions and use those emotions to guide thinking and behaviour. It
helps in finding ways that result in important outcomes in the family, MBA
the workplace, and other areas of life. In the organizational context, EI
helps in determining leadership effectiveness to deal with teams in the
4.10 workplace.
EmOTIONAL INTELLIgENCE
EI leaders inspire team members to work efficiently to achieve
organizational goals.
The capacity to recognize,
It concerns use, and regulate
an individual’s your own
capacity to emotions
understand in order
his to
h i
reduce stress,
emotions to
communicate with others, overcome obstacles, and
e
understand the jobs and the clients. It is desirable to understand one’s is
clearly, sympathizes diffuse
l
conflict

D
known asemotions
Emotionalbefore
Intelligence (EQ). Youothers’
understanding can develop stronger
emotions as relationships,
it has direct perform well
influence

of
at work on
andsocial
school,interactions
and reach your
that influence the quality of social relationships, of
professional and personal objectives with the aid
emotional intelligence. Additionally, it can assist you in establishing a connection with your
which affect task performance when dealing with customers. People align

ty
emotions, putting your intentions into practice, and choosing what is most important to you.
their emotions with productive activities resulting in organizational success.
Emotional intelligence is commonly defined by four attributes:

s i
Emotional intelligence in the workplace results in constructive feedback,
Self-management Individualsproductive
supporting–colleagues, control impulsive
employees,
e r
feelings and behaviors,
mutually acceptablemanage your
solutions
emotionstoinproblems
healthy ways, take
and an initiative, follow
environment
i v
with through
freedomonofcommitments, and adapt to
expression. Emotional

n
changing circumstances.
quotient is a measure of emotional intelligence.

, U
O L
/ S
O L
/ C
C E
D
©D
Fig 4.11: Attributes of Figure 3.11:
Emotional Attributes of Emotional Intelligence
Intelligence

Self-awareness – Individuals recognize their own emotions and how they affect your
thoughts and behavior. They know their strengths and weaknesses and have self-confidence.

Social awareness – Individuals have empathy. They can understand the emotions, needs, and
84 PAGE
concerns of other people, pick up on emotional cues, feel comfortable socially, and recognize
© Department
the of Distance
power dynamics & Continuing
in a group Education, Campus of Open Learning,
or organization.
School of Open Learning, University of Delhi
108 | P a g e

© Department of Distance & Continuing Education, Campus of Open Learning,

School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

Notes
3.11 Components of EI
Daniel Goleman who popularized EI described four main components
of Emotional intelligence:
1. Self-awareness: It is the ability to understand one’s emotions,
strengths and weaknesses. A person understands what he feels and
why he feels that way. Self-awareness helps to monitor oneself and

i
discover how feelings affect their actions. People can sense if they
are making the right and satisfying decisions. It develops an ethical
l h
framework that provides a ground for future decisions and actions.
People with high emotional self-awareness reflect better on their
D e
of
strengths and weaknesses. They control their emotions and maintain

ty
relationships with colleagues at the workplace.

i
2. Self-management: It allows to manage the emotions to produce the
s
r
desire outcome. It prevents unregulated so that staff can perform
e
v
to their best abilities. This results in emotionally strong workplace

n i
devoid of conflicts and resentment. The employees remain focused

U
and motivated to work towards goals and respond to dynamic
situations.

L ,
3. Motivation: People are motivated towards goals and exceed the

S O
expectations set for them. It results in passion for work and makes

L /
the job interesting and challenging.

O
People with high emotional intelligence derive motivation from the

C
/
work itself rather than external factors. They seek creativity and

C E
challenges, maintain positive attitude towards work and look for
opportunities. They look at failures as opportunity to do better.

D
©D
4. Social awareness: It is the ability to sense how others feel about a
situation. It is empathy that helps to understand people; their body
language, tone of voice and expressions.
People with high social awareness understand the emotions of
employees, view the situation from their perspective, and take suitable
decisions. They think beyond themselves and make decisions for a
team.
5. Social skills: People manage relationships and take care of emotions
of everyone in the organization. People work with commitment to

PAGE 85
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes make their organization successful. Leaders with social skills are
transformational leaders and work with a vision. They promote
unity in diversity where everyone moves in common direction.

3.12 How to Improve Emotional Intelligence at the

Workplace
The following ways can help to improve EI at the workplace:

h i
l
1. Understand emotions: A person must understand his emotions, and

D e
those of his colleagues to know how they affect people around
them. Negative emotions like anger, frustration, apprehension, fear,

of
jealousy, etc. should be removed to create a positive environment
at the workplace.

i ty
2. Feedback: As it is not always possible to analyse the self and

r s
highlight the points of improvement, a person may not be able to

e
understand his own emotions. Feedback from people around (peer
v
n i
group, seniors, juniors etc.) helps to get information regarding as
to how one responds to different situations that are affected by
U
his emotional state. Both positive and negative feedback help in
,
L
developing emotional intelligence.

O
3. Avoid overreacting: Emotionally intelligent people stay calm in
S
L /
conflicting situations and think of solutions than expressing their
displeasure. They do not react impulsively to make the situation
O
worse.
C
E /
4. Active listening: Listening patiently to everyone develops emotional

C
intelligence. It avoids misunderstanding and promotes communication

D skills and balanced relationships in the organisation. This results in

©D
productive output.
5. Practice: Emotional intelligence does not develop on its own. It takes
time and requires constant practice to manage one’s emotions. One
needs to constantly self-analyse his emotions to master emotional
intelligence.

86 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Learning, Attitudes, Values and Emotions

IN-TEXT QUESTIONS Notes

12. Psychologist, Ivan Pavlov is associated with:

(a) Classical conditioning
(b) Operant conditioning
(c) Cognitive learning
(d) Social learning
13. Belief in oneself is:
h i
(a) Modelling
e l
(b) Self efficacy
D
of
(c) Reinforcement

ty
(d) Learning
14. Strengthening the behaviour by offering rewards is:
s i
(a) Positive reinforcement
e r
(b) Negative reinforcement
i v
(c) Extinction
U n
(d) Punishment
L ,
O
15. The reinforcement schedule is administered after a fixed number
of behaviours:
/ S
O L
(a) Fixed interval schedule
(b) Variable interval schedule

/ C
E
(c) Fixed ratio schedule

C
(d) Variable ratio schedule

D
©D
3.13 Summary
Theory Appraisal Criticism
Classical Identifying causes of behaviour Does not allow for free will
Conditioning Emphasizes learning from the in individual
environment Underestimates uniqueness
Supports nurture over nature of human beings

PAGE 87
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Theory Appraisal Criticism

Based on scientific, empirical May lack validity
evidence Limiting in describing
Improve or control undesirable behaviour in terms of nature
behaviours or nurture
Operant Effective for temporary behaviour Does not address cognitive
Conditioning modification processes
Easy to implement Behaviour ends with reinfor-
cement
h i
e l
May hinder intrinsic motiva-

D
tion

of
Cognitive Creative approach for solving tasks Limit the quantity of learning
Learning Less time to solve tasks Use of repetition and therefore,

ty
Division of tasks which makes it encourages rote learning

i
Possible for individuals to search Ineffective for Bright Learners

s
r
for a quick solution
Social Natural Way to Learn
v e False setting
Learning
i
Great for leverage in organisations Ignores the Role of nature
n
U
Higher Learning Retention Ignores Biological Factors

L ,
Bringing employees together to Ignores life span changes
share subject matter expertise
Thurstone
O
Allows as many statements as Time-consuming.

S
scale

L /
you want. The scale is complex.
Assured of survey reliability because There is no sure method

C O the judges that will rate the scale of measuring attitude; scale

/ are highly knowledgeable. only try to measure the

CE
Provides the average score of expressed opinion and then
the survey ranks. This assists the draw inferences from it about

D D researcher when analyzing the results

from the respondents because the
people’s actual feelings or
attitudes.

© researcher already knows what score

to compare the result to.
Limited answer options.

The scale also gives the researcher

the monopoly to choose items that
represent the desired range.

88 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Learning, Attitudes, Values and Emotions

Theory Appraisal Criticism Notes

Likert’s Ease of Implementation - Quantifiable On one side, two people
Scale Answer Options can get the same value in
Makes question answering easier the Likert scale by having
on the respondent chosen different options.
Responses are very easy to code Is difficult to treat neutral
opinions as “Neither agree
Likert surveys are quick, efficient
nor disagree”.
and inexpensive methods for data
collection Respondents tend to agree

h i
to the statements showed.
This phenomenon is called
e l
acquiescence bias.
D
of
Opinion To Get a Sense of the Majority Influence could also be
Survey Opinion Negative
For Potential Accuracy
i ty
Chances of Inaccuracy
To Negate Thinking Errors Altering Answers
r s
Much more affordable

v e
Interviews
Enables detailed assessment
n i
Ability to find the right candidate Highly time - consuming
Unpredictable outcome
Great source of information
, U
Hard to verify the truth
Increase knowledge

O L Can easily form stereotypes

Understanding stakeholders better Risk of personal bias

/ S
Extracting additional information

O L
C
3.14 Answers to In-Text Questions

E /
1. (d) Regular Learning

D
2. ReinforcedC
©D
3. Principle of Effect
4. Concept
5. (c) A withdrawing or removal of a positive reinforcer
6. (c) Variable Interval Schedule
7. (b) Attitudes
8. (c) A relational currency
9. (b) Not direct

PAGE 89
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 10. (b) Subjective responses to experiences in our environment

11. (a) Emotion is a visceral response producing a behavioural response
12. (a) Classical conditioning
13. (b) Self efficacy
14. (a) Positive reinforcement
15. (c) Fixed ratio schedule

h i
3.15 Self Assessment Questions
e l
D
1. What is meant by learning in the organization? What are the different

of
ways in which employees may learn at work? Cite suitable examples.

ty
2. How important is attitude in making people attached to a company
and making employees satisfied?

s i
r
3. Values have become secondary for achieving success in the organization.
e
v
Discuss.

n i
4. How do you apply concepts about emotions to specific Organizational
Behaviour issues?

, U
L
5. Differentiate between

O
(a) Conditioned stimulus and unconditioned stimulus

S
/
(b) Conditioned response and unconditioned response
L
O
(c) Classical conditioning and operant conditioning theories of

/ C learning

CE
(d) Positive and negative reinforcement

D
(e) Primary and secondary reinforces

© D (f) Fixed and variable interval schedule of reinforcement

3.16 References
u Luthans, F. (2011). Organizational Behaviour: An Evidence – Based
Approach, McGraw Hill Education
u Robbins Stephen P and Judge T.A., Vohra, Organisational Behaviour,
(16th Ed. Pearson.)

90 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
Learning, Attitudes, Values and Emotions

u Singh, B.P. & Chhabra, T.N. (2013). Organisation Theory and Notes
Behaviour, Dhanpat Rai & Co.

3.17 Suggested Readings

u Kaul Vijay Kumar (2012). Business Organization & Management -
Text and Cases.
Kavita Singh: Organisational Behaviour 3rd Ed. Vikas Publication.
i
u

u Koontz & Heinz Weihrich, Essential of Management, McGraw Hill.

l h
u Kumar, P. Sachdeva A. (2012). Fundamentals of Management. S.
Chand. 1st Ed.
D e
u Pearson.
of
ty
Robbins Stephen P and Judge T.A. (2017) Organisational Behaviour,
i
u

s
17th Ed. Pearson.
u
e r
Stephen P. Robbins & Mary Coulter (2017) Management. 13th Ed.
Pearson.
i v
U n
L ,
S O
L /
C O
E /
D C
©D

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
L E S S O N

4
Interpersonal Relationship
Dr. Reema Aggarwal
Assistant Professor
Department of Distance & Continuing Education
Campus of Open Learning, University of Delhi
Email-Id: [email protected]

h i
l
Ms. Manisha Yadav

D e
Assistant Professor
Department of Distance & Continuing Education

of
Campus of Open Learning, University of Delhi
Email-Id: [email protected]

i ty
STRUCTURE
r s
v e
4.1 Learning Objectives
4.2 Introduction
n i
4.3 Transactional Analysis
, U
4.4 Ego States
O L
4.5 Types of Transactions
/ S
L
4.6 Need of Understanding Transactional Analysis
O
C
4.7 Life Positions

E / Games
4.8 Stroke Analysis

CWindow
4.9 Psychological
D
D
4.10 Johari

©
4.11 Summary
4.12 Answers to In-Text Questions
4.13 Self-Assessment Questions
4.14 References
4.15 Suggested Readings

92 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Interpersonal Relationship

Notes
4.1 Learning Objectives
At the end of this lesson, the student should be able to:
u Explain the concept of transactional analysis and the need to maintain
a healthy interpersonal relationship in an organisation.
u Differentiate between complementary and non-complementary
transactions.
u Understand the concept of life positions and their importance in the
h i
organisation.
e l
u Understand the importance of stroke and the concept of psychological
D
of
games.
Understand the importance of Johari window as a tool for improving

ty
u

i
interpersonal relationships.

r s
4.2 Introduction
v e
n i
Organisations accomplish objectives through their employees. It takes

U
collective efforts, which requires smooth interpersonal interactions among

,
L
employees. Globalization and technology improvements have made it more

O
critical for employees to interact with one another and ensure smooth

S
interpersonal communication to enhance organizational effectiveness.
/
O L
As Aristotle said, “Man is a social animal” by extension, employees interact
with one another and work in close associations. Employees working

/ C
together share a special bond that makes them feel connected with one

C E
another and the organisation itself. A healthy interpersonal relationship
makes employees more productive and positive and renders the entire
D
©D
working environment more salubrious. An interpersonal relationship is a
dyadic relationship that is interactive. This interaction can be on a one-
to-one basis, one-to-group basis, group-to-one basis or group-to-group
basis. Besides, these transactions can be cooperative or conflicting. The
cooperative transaction is a win-win scenario for both, the organization
and the members partaking in it.
Some skills that can help navigate an individual to these significant
transactions without a hitch are: - Mutual trust, positive thinking, empathy
and courtesy.

PAGE 93
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Accomplishing successful interpersonal relations in the context of

organizational goals is a challenging and slow process. It requires deep
psychological understanding of oneself as well as of others. Every manager
is responsible for managing interpersonal relations in his department in
such a way that everybody cooperates willingly in accomplishing the
organizational goals. Without good interpersonal relations, there will be
an atmosphere of misunderstanding and conflicts in the organization.
Several behavioural scientists recommended the use of various tools for

h i
analysing and managing interpersonal behaviour in an organization for the

e l
betterment of the organization and its people. The present lesson explores

D
some of these tools, like ego states, life positions, psychological games,

of
strokes, and the Johari window.

ty
4.3 Transactional Analysis

s i
r
Transaction refers to communication and exchange of dialogue between

e
v
two individuals. Transactions consists of two components -“Transaction

i
stimulus” (It is given by a person who starts communication) and “Transaction
n
U
response” (It is provided by a person who receives transaction stimulus).

L ,
When two individuals interact, one responds to the other; this is called a
social transaction. The study of these transactions is known as Transactional

S O
Analysis (TA). Based on the ideas of Sigmund Freud’s Psychometric

L /
theory of childhood experiences in the late 1950s, Eric Berne developed

O
transactional analysis theory. It is a psychoanalytic theory and a therapy

C
method that helps understand interpersonal behaviour and analyse social

E /
interaction between people. Transactional Analysis is a theory to improve

D C interpersonal communication. Transactional analysis was initially thought to

be a simple model and was criticized. But eventually, the understanding of

©D
transactional analysis increased, and many acknowledged it. Transactional
Analysis has wide applications in clinical, therapeutic, organizational
and personal development, encompassing communications, management,
personality, relationships and behaviour.
Today TA is used in organizations as psychotherapy. Eric Berne said that
verbal communication, particularly face-to-face communication, is at the
centre of human social relationships and psychoanalysis. His starting
point was that when two people encounter each other, one of them will

94 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Interpersonal Relationship

speak to the other, which he called the Transaction Stimulus. The reaction Notes
from the other person he called the Transaction Response. The present
lesson includes the concept of ego states, life positions, psychological
games, strokes, and the Johari window that could help understand how
interpersonal relationships could become smooth.
“Psychoanalysis theory is based on the belief that man is encouraged
more by unforeseen forces than the conscious and logical thought. Freud

i
believed that most of the things in life are not present at the conscious
level but they are present at an unconscious level”.
l h
4.4 Ego States
D e
Humans are teeming with whims and fancies. Accordingly, when
of
ty
employees interact, their conduct varies as per the situation. An employee
is cooperative at one time and grumpy at the other. He is cordial to one
s i
colleague and gives a cold-shoulder to another. Such different actions
e r
occur because of varying ego states.
i v
U n
At the core of transactional analysis are the Ego states. Paul Federn coined
the term Ego states. According to this, human personality comprises three

L ,
“ego states”. Ego states refer to a “pattern of behaviour”. As one grows

O
up, one develops a certain behaviour pattern known as the Ego State.

/ S
According to Dr. Eric Berne, there are three ego states: Parent ego, adult

O L
ego, and child ego. Each ego state consists of some common behavioural
pattern an individual follows in various situations. Usually, their present-
Organizational
day reactions
/ C
Behaviour
are based on their past experiences and feelings. Following

E
is a brief detail on each ego state—

C
D
Ego
D Parent Adult Child
© States (P) (A) (C)

FigureFig5.1:
4.1: Ego
EgoStates
States
5.4.1 The parent Ego State: Parent Ego refers to the personality attributes of values,
attitudes, and behaviour of parents like people, inherited by a person when he was a child. An PAGE 95
individual assimilates such behaviour from parent figures like a teacher, father, mother,
© Department of Distance & Continuing Education, Campus of Open Learning,
brother, or any other person who is elderly and displays an advisory behaviour, which is
School of Open Learning, University of Delhi
copied by a child and subsequently displayed in his life when such situations arise. Either
someone makes decisions for you, or they show protection and care. Both types of behaviour
represent the “Parent ego”. Parent ego can be of the following two types-
i. Nurturing parent Ego: The nurturing parent ego state has attributes like empathy,
comfort, and protection towards others. In this state, an individual tries to understand others
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 4.4.1 The Parent Ego State

Parent Ego refers to the personality attributes of values, attitudes, and
behaviour of parents like people, inherited by a person when he was a
child. An individual assimilates such behaviour from parent figures like
a teacher, father, mother, brother, or any other person who is elderly
and displays an advisory behaviour, which is copied by a child and
subsequently displayed in his life when such situations arise. Either
someone makes decisions for you, or they show protection and care.
h i
of the following two types—
e l
Both types of behaviour represent the “Parent ego”. Parent ego can be

D
of
(i) Nurturing Parent Ego: The nurturing parent ego state has attributes
like empathy, comfort, and protection towards others. In this state,

ty
an individual tries to understand others and emanates empathy

s i
towards them. Actions taken from this state instil confidence and

r
encourage others to go on and are full of appreciation for people
e
v
and their positive behaviours. For instance, a person in this ego

n i
state will say, “What can I do to help you”?

, U
(ii) Critical Parent Ego: The critical parent ego state is about blaming
others and giving unconstructive criticism. It includes actions like

O L
- attacking other people, being extremely judgmental, not listening,

S
and not being interested in an explanation. The critical parent will

L /
write you off as a person rather than deal with your behaviour.

O
However, they are always ready to respond with a should or ought

/ Cto almost anything that people tell them. For instance, an individual

E
in his critical parent ego state will say, “You must submit your

D C assignment by evening.”

©D
ACTIVITY
Name that one friend in your friend circle—
(a) Who normally suggests place, fix time, and decides do’s and
don’ts for the whole group.
(b) Who says, “don’t worry, I am with you”, or “I’ll help you in
best possible manner” or shows care and concern.

96 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Interpersonal Relationship

4.4.2 The Adult Ego State Notes

An adult’s ego state refers to a pattern of behaviour where an individual

behaves more logically. Past experiences do not influence such individuals
and they believe in seeking facts and tend to reflect problem-solving
behaviour. Their behaviour is inclined toward rational decision-making.
They analyze the situation after going through the available facts and
behave rationally. Logical thinking, thoughtful conversation and factual
discussion are the cornerstones of an adult ego state. The adult ego state
h i
is stored by facts, not feelings and emotions.
e l
D
of
4.4.3 The Child Ego State

ty
The child ego state refers to a pattern of behaviour that could be

i
characterized by spontaneous, impulsive, creative, and emotional components

s
r
of personality. A child’s Ego state could take two types, one is a happy

e
child (no harm to anyone), and the second is a destructive child (behaviour
v
might harm others or themselves).
n i
U
People operating in this state usually act as they did when they were a

L ,
child. The Child Ego State is primarily concerned with feelings though
that does not mean that when in the ‘here and now’ experience, the person
O
does not have access to attitudes and thinking, but it simply means that
S
L /
when activated, feelings are usually the executive energy force. People
operating in this state act emotionally and make impulsive decisions.

C O
Immature behaviour characterizes this state. Anxiety, dependence, fear,
/
hate, and conformity are other characteristics of a Child Ego State.
E
C
Physical and verbal cues such as giggling, compliance, seeking attraction

D
and coyness indicate the Child Ego State.

©D
PARENT EGO ADULT EGO CHILD EGO
Teaching Rationality Spontaneous
Demonstrating Objective Impulsive
Rules & Laws Figuring out Fantasizing
Dos and Don’ts Estimating Creativity
Truths Evaluating Experiencing joy/
frustration

PAGE 97
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Conclusion: There is no general rule regarding the effectiveness of any

ego state in given situation. Each type of ego state may lead to positive
or negative behaviour. It is not only about words but also tone, body
postures, expressions, and gestures that reflect the ego state during the
communication exchange. From an organizational perspective, learning
and reflecting on the positive side of each ego state is essential.
IN-TEXT QUESTIONS
1. There are three types of Ego states, namely,_______, _____

h i
and _______.

e l
D
2. The Transactional Analysis (TA) theory is coined by___________.

of
3. _______ coined the term Ego state.
4. Child Ego state is the pattern of behaviour that could be
characterized by—
i ty
(a) Impulsive
r s
(b) Creative
v e
(c) Spontaneous
n i
(d) All the above

, U
L
5. Adult Ego state is the pattern of behaviour that could be

O
characterized by—

S
/
(a) Logical
L
O
(b) Protective

/ C (c) Spontaneous

CE
(d) Controlling

D D 4.5 Types of Transactions

© A transaction is a unit of social interaction consisting of an initiating

message called the stimulus(S), and a reply called the response(R). The
stimulus and response might be verbal or non-verbal, but they must be
received and acted upon by both parties. In other words, a transaction is
a relationship between two people in which one says or does something,

98 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 5.5 TYpES OF TRANSACTIONS

A transaction is a unit of social interaction consisting of an initiating message called the

stimulus(S), and a reply called
Interpersonal the response(R). The stimulus and response might be verbal or
Relationship
nonverbal, but they must be received and acted upon by both parties. In other words, a
transaction is a relationship between two people in which one says or does something, and the
other and theA other
reacts. reacts.
transaction mayAinvolve
transaction may involve
any combination anystates.
of ego combination of ego Notes
states.
Transactions are forms of interactions that develop early in life, such as Parent-Child, Child-
Transactions are forms of interactions that develop early in life, such as
Child, or Adult-adult. For instance, young children, when ordered, become frightened or
Parent-Child, Child-Child, or Adult-adult. For instance, young children,
grumpy. Many years later, as grown-ups, they may get into a rut and reply to the same
when ordered, become frightened or grumpy. Many years later, as grown-
transaction.
ups, they may get into a rut and reply to the same transaction.
Following diagrammatic representations elucidate the exchange of transactions between two
Following diagrammatic representations elucidate the exchange of
people-

i
transactions between two people—

l h
D e
of
i ty
r s
v e
n i
, U
Figure
O L
4.2:Transaction
Fig.5.2: Transaction
An arrow
An arrow passespasses from
from the egothe egofrom
state
/ S
statewhich
fromthe
which the stimulus(S)
stimulus(S) originates originates
to the ego state
to the ego state which receives
L
the message. The arrow represented
which receives the message. The arrow represented by “R” shows the corresponding

O
“R” shows the corresponding response(R).
response(R).
by

Depending
on the on
egothe / C
egoofstates of the involved
persons in
involved in transactions,
there may bethere
E
Depending states the persons transactions, four types
may be four types of transactions: Complementary, Non-Complementary,
C
of transactions: Complementary, Non-Complementary, Ulterior and Gallows.

D
Ulterior and Gallows.

©DComplementary Transactions
122 | P a g4.5.1
e

© Department of Distance & Continuing Education, Campus of Open Learning,

A stimulus invites a response; this
School of Open response
Learning, becomes
University of Delhia stimulus for further
response, and so on. Appropriate and Expected Transactions indicate
healthy human relationships. Successful communication takes place when
transactions are complementary.

PAGE 99
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organizational Behaviour
MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

5.5.1 Complementary Transactions

Notes Complementary Transaction = Effective + Complete
A stimulus invites a response; this response becomes a stimulus for further response,
and so on. Appropriate and Expected Communication
Transactions indicate healthy human relationships.
A transaction
Successful is complementary
communication takes place whenwhen a stimulus
transactions from one person gets
are complementary.
the predicted response from the other. The transaction is complementary
Complementary Transaction = effective + complete communication
because both the interacting individuals act in the perceived and
A transaction
expectedis ego
complementary whena atransaction,
state. In such stimulus fromboth
one persons
person getsarethe predictedand
satisfied, response
from communication
the other. The transaction is complementary
is complete. because both
A complementary the interacting
transaction individuals
occurs when act
in thethe
perceived
lines between the sender’s and receiver’s ego states are parallel. and
and expected ego state. In such a transaction, both persons are satisfied,
communication is complete.
Complementary A complementary
transactions are of thetransaction
followingoccurs
h i
when the lines between the
types:

e l
sender's and receiver's ego states are parallel. Complementary transactions are of the
(i) Adult-to-Adult Transactions: This is the most satisfactory transaction

D
following types:
and leads to healthy communication. The individuals involved are

of
i. Adult-to-Adult transactions:
rational, logical, this is the
and objective. most satisfactory
Therefore, it is an transaction and leads to
ideal transaction
healthy
withincommunication.
an organisation. The individuals
It is the involved are of
best type rational, logical, and objective.
communication, as

ty
Therefore, it is an ideal
and transaction within anThe
organisation. It is the bestthe
type of
i
it is respectful reduces conflicts. key to recognizing

s
communication,
Adult-to-Adult transaction is an unemotional exchange between the the
as it is respectful and reduces conflicts. The key to recognizing
Adult-to-Adult
e r
individuals.transaction is an unemotional exchange between the individuals.

i v
U n
L ,
S O
L /
C O
E /
D C
©D Supervisor:
Supervisor: Have you Have
Figure Fig.5.3:
you
finished
4.3: Adult-Adult
finished
your
Adult-AdultTransaction
Transaction
your job? (A-A)
job? (A-A)
Employee: Yes. Sir, I finished it long back, and it has already been
Employee: Yes. Sir, I finished it long back, and it has already been delivered to the
delivered
assembly to the assembly section. (A-A).
section. (A-A).
The supervisor wanted to take stock of the work assigned to the
123 | P a g e
employee. The employee responded from his adult ego state. As a
result, both individuals
© Department had effective
of Distance & Continuing andCampus
Education, complete
of Opencommunication.
Learning,
School of Open Learning, University of Delhi

100 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBA

The supervisor wanted Relationship

Interpersonal to take stock of the work assigned to the employee. The employee
responded from his adult ego state. As a result, both individuals had effective and
complete communication.
(ii) Adult-to-Parent Transaction: In this transaction, an individual Notes
ii. Adult-to-parent Transaction: stimulus
sends a transactional In this transaction, an individual
as an adult to anothersendsindividual.
a transactional
stimulus
If the asother
an adult to another
individual individual.
responds If the
from theother individual
nurturing responds
parent’s egofrom
thestate,
nurturing
the communication will be smooth. On the other hand, if theother
parent's ego state, the communication will be smooth. On the
hand, if the response comes from a critical parent ego state, it could give rise to a
response comes from a critical parent ego state, it could give rise
conflict.
to a conflict.

h i
e l
D
of
i ty
r s
v e
n i
Figure 4.4: Adult-Parent
Fig.5.4: Adult-Parent
U
Transaction
,
Transaction
Employee
Employee X:seen
X: Have you Have
my you
L
seen my file? (A-P)
file? (A-P)

O
Employee Y: No, but I can help you find it. (P-A)

/ S
Employee Y: No, but I can help you find it. (P-A)

L
An employee X enquired about his missing file. Employee Y
An employee X enquired about his missing file. Employee Y responded from his
O
responded from his nurturing parent ego state. As a result, both

C
nurturing parent ego state. As a result, both individuals had effective and complete

/
individuals had effective and complete communication.
communication.

iii. Adult-to-Child E
(iii) Adult-to-Child Transaction: In this transaction, an individual

C
may send aTransaction:
transactionalIn stimulus
this transaction,
as an adultan toindividual may send a
another individual
D
transactional
and gets a response from a child’s ego state. Such a transaction from
stimulus as an adult to another individual and gets a response is a

©D
child's ego state. Such a transaction is generally not seen on work premises.
generally not seen on work premises.

124 | P a g e

© Department of Distance & Continuing Education, Campus of Open Learning,

School of Open Learning, University of Delhi

PAGE 101
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organizational Behaviour
MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes

h i
e l
Fig.5.5: Adult-Child Transaction f
D
o
Figure 4.5: Adult-Child Transaction

ty
Employee X: How are you? (A-C)

i
Employee X: how are you? (A-C)
Employee Y: Aww, thanks for asking. I amsdoing great. (C-A)
Employee Y: Aww, thanks for asking. I am doing great. (C-A)

e r
Employee X wanted a normal howdy do with employee Y. Employee

Employee X wanted a normal howdy do withi v

Y overwhelmed with emotions and responded from his Child ego

emotions and responded from his Child n

employee Y. Employee Y overwhelmed with
state. Since employee X expected such a response from employee

U ego state. Since employee X expected such a

Y, the communication was successful.
,
response from employee Y, the communication was successful.

O L
(iv) Parent-to-Parent Transaction: In this transaction, the manager uses
rewards, criticism, rules, and admonitions. The transaction can be
iv. parent-to-parent Transaction: In this transaction, the manager uses rewards
criticism, rules, S
L / him. Otherwise, the two may be needless competition as the
beneficial if the employee supports him. Otherwise, there may be
and admonitions. The transaction can be beneficial if the
needless competition as the employees will try to push their ideas.

employees O
employee supports

/ C will try to push their ideas.

C E
D
©D

Figure 4.6: Parent-Parent Transaction

102 PAGE Fig.5.6: Parent-Parent Transaction

© Department of Distance & Continuing Education, Campus of Open Learning,
Superior: You must not unnecessarily
School experiment
of Open Learning, with
University things. (P-P)
of Delhi

125 | P a g e

© Department of Distance & Continuing Education, Campus of Open Learning,

 Interpersonal Relationship

MBA
Superior: You must not unnecessarily experiment with things. (P-P) Notes
Subordinate: Great things don’t happen without experiments. (P-P)
Subordinate: Great things don't happen without experiments. (P-P)
(v) Parent-to-Adult Transaction: In this transaction, an individual sends
v. parent-to-Adult
a transactionalTransaction:
stimulus Inas this transaction,
a parent an individual
to another sends and
individual a transactional
gets
stimulus
a responseas a parent
from an to another individual
adult ego state. and
Thegets a response
stimulus usesfrom an adult ego
dogmatic
state. The stimulus language
and overbearing uses dogmatic and overbearing
but gets countered language but getsreply.
with a logical countered
with a logicalconflicts
Therefore, reply. Therefore, conflicts
over trivial over trivial
matters matters off.
are staved are staved off.

h i
e l
D
of
i ty
r s
v e
n i
, U
O L
Figure 4.7: Parent-Adult Transaction
Fig.5.7: Parent-Adult Transaction

S
Employee X: You should sit straight. (P-A)
Employee X: you should sit straight. (P-A)
L /
Employee Y: I have a backache. (P-A)
Employee Y: I have a backache.
Employee X called(P-A)
O
employee Y on his sitting posture. Instead of
C
Employee Xsnapping
called employee
a conflict.
E /
at him, YEmployee Y chose
on his sitting to reason
posture. Instead with him and
of snapping at precluded
him, Employee

C
Y chose to reason with him and precluded a conflict.
vi. (vi)
D
Child-to-Child
Child-to-Child Transactions:
transactions: In this transaction,
In this transaction, an individual
an individual sends
sends a transactional

©D
a transactional
stimulus as a child stimulus as aindividual
to another child to and
another
gets aindividual and agets
response from a ego
Child
response from a Child ego state only. Such a type of transaction
state only. Such a type of transaction is not suitable for a workplace. Both is
not suitable
individuals actfor
on awhims,
workplace.
fancies,Both individuals
and emotions acttransaction.
in this on whims,Therefore,
fancies, the
and emotions
organization in this
suffers transaction.
badly, Therefore,
and the situation cannotthe
last organization
long. suffers
badly, and the situation cannot last long.

126 | P a g e
PAGE 103
© Department of Distance & Continuing Education, Campus of Open Learning,
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR
Organizational Behaviour

Notes

h i
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of
Fig.5.8: Child-Child Transaction
Figure 4.8: Child-Child Transaction
Employee X: Management should always think in favour of their employees. (C-C)
Employee X: Management should always think in favour of their

ty
Employee Y: If management
employees. (C-C) does not think in our favour, we will do the same towards
them. (C-C)
s i
r
Employee Y: If management does not think in our favour, we will

e
Both employees
do the same are verklempt
towards with(C-C)
them. emotion . In the short run, such a transaction is

i v
smooth for the individuals involved, but in the long run, it is not good for the
Both employees are overcome with emotion. In the short run, such a
n
organization.

U
transaction is smooth for the individuals involved, but in the long
vii. Child-to-parent transaction:

,
run, it is not good for the organization.

L
Employee: To whom should I submit the file after completing it? (C-P)
(vii) Child-to-Parent Transaction:

S O
Manager: You must always follow the chain of command for any official work. (P-C)
Employee: To whom should I submit the file after completing it?
(C-P)
L /
O
Manager: You must always follow the chain of command for any
C
E /
official work. (P-C)

D C
©D
Fig.5.9: Child-Parent Transaction

127 | P a g e

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Figure 4.9: Child-Parent Transaction

104 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Interpersonal Relationship MBA

viii. parent-to-Child transaction:

(viii) Parent-to-Child Transaction: when the the
When manager interacts
manager from from
interacts the Parent
the Ego Notes
Parent Ego and the employee responds with the Child ego; this canboth in
and the employee responds with the Child ego; this can be satisfying for
the satisfying
be short run. Conflict
for bothand pressure
in the shortare eliminated.
run. Conflict Butandinpressure
the longare
run, the
personality ofBut
eliminated. theinemployee
the long may
run, remain underdeveloped,
the personality which maymay
of the employee create a
feeling ofunderdeveloped,
remain frustration. which may create a feeling of frustration.

h i
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of
i ty
r s
v e
FigureFig.5.10:
n i
Parent-Child Transaction
4.10: Parent-Child Transaction
Employee
Employee X: under
X: I am feeling I am the
feeling under
weather theI must
today. weather
, Utoday.
go and I must
see the doctor.go and
(P-C)

L
see the doctor. (P-C)
Employee Y: Aww, I’ll take care of

you! (C-P)

S O
Employee Y: Aww, I’ll take care of you! (C-P)

state.Employee Y through
L /
Employee X acted from a parent ego state and received a response
Employee X acted from a parent ego state and received a response from Employee Y through
a child egofrom a child ego state. The resultant Nevertheless,
transaction such
O
The resultant transaction is complete communication.
transactionsisare
complete communication.
in a workplaceNevertheless,
since they maysuch
leadtransactions are not
not preferred
preferred in a
/ C
workplace since they may lead to the
to the underdevelopment
underdevelopment
of

E
employee Y.
of employee Y.
5.5.2
C
Non-complementary transaction
D
© D
4.5.2 Non-Complementary Transaction
A Non-complementary or cross-transaction occurs when the person who initiates the
transaction does not get the response from the expected ego state. In such transactions the
A Non-complementary or cross-transaction occurs when the person who
stimulus-response lines are not parallel.
initiates the transaction does not get the response from the expected ego
state. In such transactions the stimulus-response lines are not parallel.

© Department of Distance & Continuing Education, Campus of Open Learning,

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PAGE 105
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School of Open Learning, University of Delhi
 Organizational Behaviour MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes

h i
e l
D
of
i ty
s
Figure 4.11: Cross Transaction

r
Fig.5.11: Cross Transaction

e
Supervisor: How many units have you made till now? (A-A)

v
Supervisor: How many units have you made till now? (A-A)
Operator: i
Operator: Do not enquire frequently. I will inform you after completing

n
Do not enquire frequently. I will inform you after completing it. (P-C)
it. (P-C)
The supervisor
The supervisor expected
expected
,
a rational U
a rational response;
response; instead, instead, the operator
the operator gotup
got worked worked
and replied
from up and ego
a parent replied
state.from
L
a parent
As a result,
was not successful.
O
ego state. As was
the communication a result, the communication
not successful.

S
Such a transaction will ultimately result in a dispute. Once the transaction is crossed, it results
Suchand
in unrest
L /
a transaction will leading
dissatisfaction, ultimately result in aand
to arguments dispute. Once
conflicts the transaction
between the interacting

O
is
parties. crossed, it results in unrest and dissatisfaction, leading to arguments

C
and conflicts between the interacting parties.
5.5.3

E /
Ulterior Transactions

C
We all have
4.5.3been in a conversation
Ulterior where it is all about the 'unsaid'. The real message is
Transactions
Dhiding behind the veil of social interaction. There is an overt and a covert message in such

©D
conversations. In transaction
We all have been inanalysis, we call these
a conversation interactions
where it is allulterior
abouttransactions.
the ‘unsaid’.
The real
In ulterior messagetwo
transactions, is messages
hiding behind the veil
are conveyed of social interaction.
simultaneously — a social There
message on
is an overt and a covert message in such conversations. In transaction
top and a psychological one at the bottom. So, it appears like the person is saying one thing,
analysis,
but there we call
is something elsethese
he is interactions ulterior
trying to convey (left totransactions.
the intelligence of the receiver).
In ulterior transactions, two messages are conveyed simultaneously – a
social message on top and a psychological one at the bottom. So, it
appears like the person is saying one thing, but there is something else
he is trying to convey (left to the intelligence of the receiver). 129 | P a g e

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106 PAGE
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School of Open Learning, University of Delhi
 Interpersonal Relationship MBA

Notes

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of
Fig.5.12:
Figure Ulterior Transaction
4.12: Ulterior Transaction

ty
Now,Now,
these these
can becan beenthralling
both both enthralling and excruciating.
and excruciating. FlirtatiousFlirtatious
games are agames
classicare
example
of ana classic example
exhilarating of an exhilarating
and enjoyable and enjoyable
ulterior transaction. Whereas,ulterior
on other

s i
transaction.
occasions, the

r
Whereas,
existence on other
of a sub-text occasions,
is downright the existence
unpleasant. of a sub-text
Salespersons are usuallyisadept
downright
at deploying
unpleasant.
ulterior Salespersons
transactions. Followingareis usually adept of
an example at deploying
e
an ulterior ulterior transactions.
transaction
v
at play in an
organisation:
i
Following is an example of an ulterior transaction at play in an organisation:
n
U
Supervisor:
Supervisor: What timeWhatis it,
time is it,(Kunal
Kunal? Kunal? (Kunal
reached late reached late totowhich
to the office, the office,
the manager
askedtohim
which the manager
this question.
confirming
that Kunal is late tothe
On the asked
thetime,
surface,him
he isthis
,question.
confirming

L
On the
the time, surface,
but he intends he
but he intends to highlight that Kunal is late to the
office.)
is
to highlight

office.)
S O
/
Ulterior transactions occur when three or more ego-states interact at the same time. The

L
Ulterior
interaction is attransactions
two levels —occur
what when threesays
the person or (the
moresocial
ego-states interact
message) at he
and what themeans

O
same time. The
(the psychological interaction is at two levels - what the person says (the
message).

/ C
social message) and what he means (the psychological message).
Example:
Example:

C E
Social Message (overtly spoken words): psychological Message (covert message):

D
Social Message (overtly spoken Psychological Message (covert message):

©D
words):
Salesperson (S): This is the top-of-the-range Salesperson
Salesperson (S):(S): I don’t
I don’t think think
you canyou
model. Salesperson
(A-A) can afford
(S): This is the top- afford this. (A-C)
of-the-range model. (A-A) this. (A-C)
Customer (R): I’ll take a look at Customer (R): How dare you! I can buy
Customer (R): I’ll take a look at this.Customer
(C-A) (R): How dare you! I can buy this.
it, please. (A-A)
it, please. (A-A) (C-A)

130 | P a g e
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PAGE 107
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 4.5.4 Gallows Transaction

Gallows transactions include laughs or smiles on the heels of a statement
which is painful to the individual. The distinguishing mark of humour
in the gallows transaction is that it isn’t funny. Instead, the laugh serves
as tightening the noose, and the destructive behaviour gets reinforced.
Example: A teacher getting amused at the stupid behaviour of her student.
Conclusion: The adult-to-adult transaction is most effective in the

h
organization because it is problem-solving, treats people as equals and
i
e
improves understanding. Though the A-A transactions are the most
l
D
desirable yet, other complementary or parallel transactions are also

of
workable depending upon situations and the willingness of both superiors
and subordinates to develop a workable relationship.
IN-TEXT QUESTIONS
i ty
r s
6. In _________two messages are conveyed at the same time - a

e
social message on top and the psychological message at the
v
bottom.
n i
U
(a) Ulterior Transactions

,
(b) Cross Transaction
L
O
(c) Complimentary Transaction

/ S
(d) Gallows Transaction

L
7. When manager speaks to a subordinate as Parent-to-Child and
O
C
Subordinate respond as Child-to-parent; then it is an example

/ of —

D CE (a) Ulterior Transactions

(b) Complimentary Transaction

© D (c) Cross Transaction

(d) Gallows Transaction
8. When stimulus and response lines are not parallel it is known
as —
(a) Ulterior Transactions
(b) Crossed Transaction

108 PAGE
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 Interpersonal Relationship

(c) Complimentary Transaction Notes

(d) Gallows Transaction

9. “A mother smiling at a stupid behaviour of her son” - Following
is an example of:
(a) Ulterior Transactions
(b) Cross Transaction
(c) Complimentary Transaction

h i
(d) Gallows Transaction
e l
D
of
4.6 Need of Understanding Transactional Analysis

ty
Transaction Analysis is a prominent tool for positive change and growth.

i
It is the study of how individuals adopt certain behaviours, either by
s
r
accident or from their early caretakers or authority figures and then

e
v
continue to conduct in that same behaviour pattern.

n i
TA is a model for people to work towards ‘autonomy’, where they can

, U
choose to live the way they want to and not act as if they are controlled
by past events or messages. Determination of one’s ego state through TA
L
helps them to be in the driver’s seat of their way of life. An understanding
O
S
of the TA can help the person change their life’s script and choose to

/
rewrite it without being hooked on to the inappropriate behaviours of
L
O
the past.

/ C
Before moving ahead, let us understand some commonly used jargons in

C E
transactional analysis.
(a) Script: A story we have learned and internalized about ourselves.
D
©D
Negative stories about us or others tend to result in dysfunctional
social outcomes. The script itself tends to be out of our conscious
awareness.
(b) Games: We all have our scripts and engage in various “games” that
generally involve winners and losers. Games in Transactional Analysis
have been defined as: “a series of duplex transactions which leads
to a ‘switch’ and a well-defined, predictable ‘payoff’ that justifies
a not-OK, or discounted (less-than) position.” In a transactional
game, we act out our internalized script and things go well for a

PAGE 109
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes while. Then, we receive the “strokes” we expect to get from acting
out our script instead of being vulnerable and authentic until things
inevitably go south - the “switch” - and then we get the “payoff.”
(c) Strokes: The pleasant or familiar thoughts and feelings we receive
from playing social games with our internalized scripts.
(d) Switch: The moment when our internalized script’s utility breaks
down. This is usually when the script prevents us from expressing

i
our authentic identity at that moment. We begin to feel sad, confused,
and angry.
l h
e
(e) Payoff: The usual, expected result of our game, wherein we end up
D
of
feeling a loser or less-than.

ty
4.7 Life Positions

s i
r
A child is like a clean slate. However, in the process of growing up, he

e
wades through a lot of experiences and emotions. These experiences lay
v
n i
the groundwork for making assumptions about their self-worth and the
worth of significant people in the environment.

, U
Thomas Harris has called these assumptions life positions, which tend

O L
to be firmer than the ego states. During our formative years, we make
decisions about ourselves, our world, and the people around us. These

/ S
decisions get built upon the pattern of strokes we receive from our parents
L
and primary caregivers. These decisions lead us to accept one of our four
O
C
basic psychological life positions. Once a life position gets decided, it

E /
drives our patterns of thought, emotion, and behaviour. The positions are

C
acquired very early, i.e., in childhood, and stay throughout our life. Life

D
positions develop an individual’s perception, which may be positive or

©D
negative. In this way, four “Life Positions” may be generated as shown
in the following figure—
u I am OK-You are OK: This is the ideal life position. People with
this life position have healthy relationships and a positive outlook.
They are cordial, forthcoming and accepting of themselves and
others. Managers working from this life position feel comfortable
delegating authority as they have confidence in themselves and their
subordinates. This life position is based upon the adult ego state.

110 PAGE
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Interpersonal Relationship

u I am OK-You are not OK: This is occupied by those who project their Notes
difficulties onto others. They are blaming and critical. Transactional
games that reinforce this position involve a self-styled superior (the
“I am OK”) who projects anger, disgust, or disdain onto a designated
inferior or scapegoat (the “You are not OK”). This position requires
someone to be ‘worse than’ to maintain the sense of self as OK.
Managers in this life position consider delegation of authority a
threat because they do not trust others. These individuals possess
the rebellious child ego.
h i
e l
D
of
i ty
r s
v e
n i
, U
O L
/ S
O L
/ C
C E Figure 4.13 : Life Positions

D
©D
u I am not OK-You are OK: People with this life position feel powerless
and keep grumbling. They think others are more competent and
have fewer problems. Managers working in this life position are
unpredictable and erratic in behaviour. They use their bad feelings
as an excuse to act out against others.
u I am not OK-You are not OK: This is a position of hopelessness,
futility, and frustration. From this position, life seems uninteresting
and hopeless. It may result in self-destructive or violent behaviour.

PAGE 111
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Managers in this life position neither take decisions on time nor
delegate authority properly.
Out of these positions, the ideal one is “I am OK - You are Ok”, This
is because:
u It indicates healthy acceptance of self.
u It demonstrates respect for others.
It is likely to result in better communication.
i
u

u It is expected to result in better performance behaviours.

l h
D e
The other three life positions are less mature and less effective. Thus,
the life positions talk about the individual developing his identity, sense

of
of worth and perception of others during childhood. Once a person has
decided on a life position, that will often remain fixed unless considerable

i ty
effort is made to change the underlying beliefs and decisions about life.

s
Transactional analysis psychotherapy aims to bring awareness, explore,
r
e
challenge, and change an ineffective life script. It is based on the belief

v
power to change it.
n i
that because we were the original creators of our script, we have the

IN-TEXT QUESTIONS
, U
L
10. ______ are more permanent than ______.
O
S
(a) Life Positions; Ego States
/
L
(b) Ego States; Life Positions

CO
(c) Ego States; Psychological Games

E/
(d) Psychological Games; Life Positions

DC
11. ________ is an ideal life position—

©D
(a) I am Ok; you’re not OK
(b) I am Ok; you’re OK
(c) I am not Ok; you’re not OK
(d) I am not Ok; you’re OK
12. ______ people tend to feel that whole world is miserable.
(a) I am Ok; you’re not OK
(b) I am Ok; you’re OK

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 Interpersonal Relationship

(c) I am not Ok; you’re not OK Notes

(d) I am not Ok; you’re OK

4.8 Stroke Analysis

From our earliest beginnings, we depend on another person. We are born
needing and seeking contact, with an innate sense that we can’t survive
without it. Throughout our lives, we receive this contact through various

h i
types of verbal and non-verbal communication:

e l
D
u A smile

of
u A hug
Praise for something we do or who we are

ty
u

i
u A challenge to something we do or who we are.

r s
In transactional analysis, these modes of contact are called strokes. Eric

v e
Berne described strokes as a unit of recognition, one person acknowledging
another by way of act or speech.
n i
4.8.1 Types of Strokes
, U
Positive and negative.
O L
S
u

u Verbal and non-verbal.

L /
u

C O
Conditional and unconditional.

E /
Telling someone that we love them is an unconditional positive stroke
(the ultimate one) whereas telling someone that we love their cooking

C
is a conditional positive stroke. The former strokes the person’s entire
D
©D
being, whilst the latter strokes one aspect of their being. Conversely,
telling someone, you don’t like their cooking is a conditional negative
stroke and telling someone you hate them is the ultimate unconditional
negative stroke.
Throughout life, this communication develops our personality, informs our
sense of self-worth, and defines our beliefs in ourselves, the world, and
others. Depending on the type of strokes we receive before adulthood,
we end up in one of four life positions, as defined in TA.

PAGE 113
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes If the strokes we receive through childhood are appropriate to our age and
stage of development and are a balanced mix of positive and negative,
as needed, then we are likely to grow up with a sense of “I am OK-You
are OK”. In TA, this life position describes a balanced emotional and
cognitive outlook on life.
However, if the balance of strokes has veered far to the positive, contained
too many negatives or been an inappropriate mix, then we are likely to
struggle with a fair sense of self and the world.

h i
l
Those brought up with too many positive strokes might hold the life

D e
position of I am OK-You are not OK and struggle to see the others’ point
of view, having developed an over-inflated sense of self-worth.

of
On the other hand, children who receive too many negative strokes (or

ty
not enough positive ones) can grow into adulthood believing others to

i
be more important than themselves; this life position is called I am not

s
r
OK - You are OK. Alternatively, they might hold the life position of “I

e
am not OK. You are not OK” with little hope for themselves and seeing
v
little good in the world.
n i
, U
4.9 Psychological Games

O L
Games in Transactional Analysis are “a series of duplex transactions which

/ S
leads to a switch and a well-defined, predictable payoff which justifies

L
a not-OK, or discounted, position”.

O
C
Let us have a look at what that means. Firstly, what is a duplex transaction?

/
A duplex transaction is where we say one thing and mean another. Only
E
C
about 8% of our communication is through words; the rest is through tone,

D
body language and facial expressions. Berne observed that whenever we

© D say one thing (the social message) and mean another (the psychological
message), it is always the psychological message that gets heard.
We tend to open games with duplex transactions, not saying what we
really mean. Then, the game will deliver positive strokes until the “switch”
clicks in. The switch is the point at which things suddenly feel like they
are going wrong. It is the point at which we may feel confused, scared,
angry, or whatever our racket feeling usually is. This leads quickly to us
taking a “payoff”. It confirms that whatever negative (untrue) thoughts
we have held onto about life are true.

114 PAGE
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 Interpersonal Relationship

Let us give an example of a game and take it apart using the language Notes
introduced above. Let us take the game “Yes, But”. In this, one person
has a problem, and another is invited to solve it. Everything the other
person suggests is rejected with a “Yes, I could do that, but...(insert
reason for not doing that)”. We all know people who play this. We may
even play it ourselves.
Whilst it may appear the player is asking for help on the social level,
what they are really doing on the psychological level is proving that they
can’t help and no one else can control them. The switch comes when the
h i
other person gives up trying. The payoff for the player is proof that no
e l
one can help them even though they remain passive. Feelings of sadness
D
of
or anger may accompany this.
The other player in this game may feel helpless and frustrated that they

i ty
have been unable to help the starter of the game - these feelings are likely

s
to be very familiar too and reinforce a belief that they are not a very
r
e
good friend, problem solver, therapist, etc. It takes two to play a game.

v
Why do we play games?
n i
U
Games are a way in which we can get strokes without risking intimacy

How do we stop Playing games?

L ,
and confirm our beliefs (mostly wrongly held ones) about life.

S O
/
The first thing we need to do is identify what games we are playing.

O L
Ask yourself what patterns keep emerging in your life? What predictable
events occur? What feelings do you often end up having? Spot the games

/ C
and bring them into the light, where you can chew them over and decide

C E
whether you want to keep on playing or do things differently, avoiding
the negative payoff.
D
©D
IN-TEXT QUESTIONS
13. __________ proposed the concept of life positions.
(a) Thomas Harris
(b) Eric Berne
(c) Paul Federn
(d) None of the above

PAGE 115
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 14. __________ is basic unit of motivation.

(a) Stroke
(b) Life Positions
(c) Ego States
(d) Script Analysis

4.10 Johari Window

h i
Johari window is a framework developed by two psychologists, Joseph
e l
Luft and Harrington Ingham, who combined their first names to name the
D
of
model. It is a widely used model to understand and train self-awareness
and biases for personal development and to improve communications,

ty
group dynamics, team development, interpersonal relationships, and inter-
i
group relationships.
r s
e
People using the framework engage in two primary ideas, acquiring trust
v
n i
by revealing information about oneself to others and receiving feedback
to learn more about themselves. The Johari Window model captures
U
such information (feelings, attitudes, opinions, intentions, etc.) from four
,
L
perspectives, as shown in the four quadrants.

S O
L /
Known to others

CO
OPEN AREA

E / or
AREA

D C
© D

Figure 4.14: Johari Window

116 PAGE
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Interpersonal Relationship

u Open Area: (Anything about yourself that you’re willing to share Notes
with others): This is the region where actions, behaviours, and
information are known to the individual and those around him. This
type of interaction is marked by openness and compatibility and
has a very little possibility for defensive feelings and behaviour.
An “Open Area” is desirable as a team because when we work in
this area with others, we are at our most effective and productive.
This is the space where good communications and cooperation
occur, free from distractions, mistrust, confusion, conflict, and
h i
misunderstanding. Soliciting feedback can help increase this area
e l
D
horizontally to reduce the blind spot while sharing one’s feelings,

of
and can extend the area vertically, reducing the hidden area.
u Blind Area: (Anything about oneself that you are unaware of but

ty
that others have become aware of): It reflects behaviour, feelings

s i
and motivation known to other parties but not to self. A person’s

e r
observable habits, manners, feelings, etc., may be unknown to

i v
the self but known by others. Others may interpret these actions

U n
differently than what one expects them to. In fact, an individual
may even annoy others unintentionally. This area could also be

L ,
referred to as ignorance about oneself or issues in which one is
deluded. Seeking feedback can help reduce this blind spot.

S O
/
u Hidden Area: (Anything about yourself that you are reluctant to

O L
reveal to others is in the hidden area): It reflects behaviour, feelings
and motivation known to self but not known to others. In other

/ C
words, the individual understands himself but does not know about

C E
others. The individual tends to be hidden from others for fear of
their reactions. The true feelings or attitude of the individual may

D
remain a secret from others. It also includes sensitivities, fear,

©D
hidden agendas, manipulative intentions, and secrets - anything that
person knows but does not reveal. Individuals are reluctant to share
such information as it may affect their relationships. Disclosing
information to others can help decrease the hidden area.
u Unknown Area: Any region that neither you nor anyone else is
familiar with is the unknown area. The information in this quadrant
is mysterious and has unknown potential. This includes subconscious
information such as early childhood memories, undiscovered talents,

PAGE 117
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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes etc. These feelings and motivations remain unclear till people
allow these to surface. Uncovering ‘hidden talents’ that is unknown
aptitudes and skills should not be confused with developing the
Johari ‘hidden area’. It is another aspect of developing the unknown
area and is not as sensitive as unknown feelings. The unknown
area could also include repressed or subconscious feelings rooted
in formative events and past traumatic experiences, which can stay
unknown for a lifetime.
There are two interpersonal processes of ‘disclosure’ and ‘feedback’,
h i
e
which cause the redistribution of awareness and changes in the sizel
D
and form of the four quadrants. The model assumes that an ‘open self’

of
becomes larger, and the relationship tends to be more rewarding and
productive. Thus, the model is dynamic and sensitive, especially to the

ty
interpersonal application of ‘disclosure’ and ‘feedback’. The ‘hidden self’

s i
can be reduced, and the ‘open self’ can be increased through disclosure.

e r
The ‘blind area’ can be reduced by seeking feedback from others, thereby

i v
increasing the open area i.e., to increase self-awareness. Therefore,

U n
managers must promote a climate of non-judgmental feedback and group
response to individual disclosure and reduce fear.

L ,
In the ‘hidden area’, relevant hidden information and feelings, etc., should

O
be moved into the open area through the process of ‘self-disclosure’ and

S
L /
‘exposure’ process. The extent to which an individual discloses personal
feelings and information must always be at the individual’s discretion.

O
Organizational culture and working atmosphere significantly influence
C
E /
team members’ preparedness to disclose their hidden selves.

C
The use of self-disclosure forms a mechanism for sharing awareness with

D
others. However, self-disclosure involves risk for the individual, and the

©D
outcome must be worth the cost. Likewise, the ‘feedback’ process can
decrease ‘the blind self’ and simultaneously increase the ‘open self’. In
other words, others must give, and the individual must use the ‘feedback’
in social encounters. It forms the means whereby the individual encourages,
supports, and presents himself as open to the disclosure of others. In this
context, the active solicitation of feedback data in social interactions is
essential.

118 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Interpersonal Relationship

IN-TEXT QUESTIONS Notes

15. ________ developed the model of Johari Window.

16. There are five quadrants in the model of Johari Window.
(True/False)
17. Undiscovered/or unknown self is also termed as mysterious.
(True/False)

i
18. Which process can cause change in the size & form of the four
Johari Window quadrants:
l h
(a) Suppression
D e
of
(b) Feedback
(c) Disclosure
(d) Both (b) & (c)
i ty
r s
e
4.10.1 Application of Johari Window in Business
v
n i
The Johari window serves as an essential tool to analyse the employees’

U
potential, work on organizational relations, and improve team performance.
,
O L
The other people associated with the business also contribute to
organizational improvement and development. These are the financial

/ S
institutions, shareholders, customers, suppliers, etc.

O L
Taking into consideration the known and unknown facts by the company
and the customers, the Johari window provides us with four quadrants.

/ C
E
Let us see the various ways of modifying business relations using this

C
model:

D
Feedback to Reduce Blind Area

©D
Taking constant feedback from the customers and knowing about the
competitive products the consumers may prefer; makes the company aware
of customer satisfaction level, product performance, consumer loyalty,
level of competition, etc.
Being updated with the market trend and response diminishes the blind
spot of the organization.

PAGE 119
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Move Out of your Comfort Zone to Decrease Unknown Area

Innovation leads to learning, and learning contributes to growth and
development.
Therefore, the organization must explore new possibilities or diversify
into new products or means of production through proper research and
development, to increase market share and profitability.
Exploring the untapped opportunities and developing new ideas can
maximize the open area by diminishing the unknown region and shrinking
h i
the blind spot and the hidden area.
e l
D
Disclosure to Reduce Hidden Area

of
At times, some strengths or positive traits of the product or the organization
are not promoted. As a result, these may not be known to the customers

ty
creating a hidden area for the organization.

s i
Therefore, the organization must reveal its strengths, like the premium

e r
quality of raw materials used, the better shelf life of products, etc., to

i
develop customers’ trust and loyalty.
v
Conclusion
U n
L ,
As we know that all four quadrants are unique but to maintain transparency
and cordial relations within a team, it is essential to maximize the open
area.
S O
L /
Thus, the Johari window aims to improve interpersonal relationships,

O
behaviour, attitude, and skills within an organization by continually

C
assessing the scope of growth.
/
C E4.11 Summary
D
©D
Transactional Analysis is one of the most accessible theories of modern
psychology. In the 1950s, Eric Berne began developing his Transactional
Analysis theories. He said that verbal communication, particularly face-
to-face, is at the centre of human social relationships and psychoanalysis.
Transaction refers to the communication between two persons. The transaction
could be both Complementary and Cross in nature. Healthy communication
occurs when individuals follow Complementary Transactions, whereas
Crossed Transaction causes most difficulties in social situations. The

120 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Interpersonal Relationship

concept of ego states, life positions, psychological games, strokes, and the Notes
Johari window could help us understand how interpersonal relationships
could become smooth. This life position influences our behaviour when
we interact with others. The Life Position refers to the specific behaviour
towards others that an individual learns based on certain assumptions
made very early in life. Life positions develop an individual’s perception,
which may be positive or negative. Johari Window Model is dynamic
to the interactive processes of disclosure and feedback. It assumes that
interpersonal relationships tend to be more productive and rewarding as
h i
one’s “open self ” expands.
e l
D
of
4.12 Answers to In-Text Questions

ty
1. Adult, Child, and Parent
2. Eric Berne
s i
3. Paul Federn
e r
4. (d) All the above
i v
5. (a) Logical
U n
6. (a) Ulterior Transactions
L ,
O
7. (b) Complimentary Transaction
8. (b) Crossed Transaction
/ S
9. (d) Gallows Transaction
O L
/ C
10. (a) Life Positions; Ego States

E
11. (b) I am Ok; you’re OK

C
D
12. (c) I am not Ok; you’re not OK

©D
13. (a) Thomas Harris
14. (a) Stroke
15. Joseph Luft and Harry Ingham
16. False
17. True
18. (d) Both (b) and (c)

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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 4.13 Self-Assessment Questions

1. “Transactional analysis tends to improve interpersonal communication”.
Comment. Also, explain the utility of transactional analysis.
2. Explain three ego states with suitable examples.
3. Discuss the concept of Life Positions. Name the “ideal life position”.
Also, explain the utility of understanding life positions to a manager.
4. Explain the concept of the Johari Window. How can it help in

h i
improving interpersonal relations?

e l
D
5. State the implication of Johari Awareness Model.

of
6. Differentiate Between
(a) Cooperative and conflicting interpersonal behaviour
(b) Child ego, parent ego and adult ego
i ty
r s
(c) Complementary and crossed transactions

v e
(d) Four quadrants of Johari Window

n i
State the nature of transaction and draw the relationship:

, U
i. Manager to Employee : How are you doing?

L
Employee to Manager : Fine sir, thank you.

O
S
ii. Manager Employee : “You misbehaved with your colleague

L /
yesterday and I don’t expect this behaviour to be repeated.”

C O
Employee to Manager : “I was not wrong. I shall not apologise.”

E / iii. Manager Employee : “You misbehaved with your colleague

yesterday and I don’t expect this behaviour to be repeated.”

D C Employee to Manager: “I am sorry sir, I’ll take care not to

©D
behave like this again.”
iv. A to B: “I think you need to go and wash your hands”
B to A: “OK, I will wash now”.
v. A to B: “The weather is so nice for winters.”
B to A: “Yes, it is warm and sunny.”
vi. A to B: “I have hurt myself.”
B to A: “Don’t worry. I will clean it up”.

122 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
Interpersonal Relationship

Answer: Notes
i. complementary transaction (adult-adult)
ii. crossed transaction (Parent to Child and Parent to Child)
iii. complementary transaction (Parent to Child and Child to
parent)
iv. complementary transaction (Parent to Child and Child to

i
parent)
v. complementary transaction (adult-adult)
l h
vi. complementary transaction (Child to Parent and parent child)
D e
4.14 References of
i ty
Eric Berne, (1961). Transactional Analysis in Psychotherapy, Grove
s
u
Press, New York.
e r
u

i v
Thomas A, Harris, (1967). I’m O.K., You’re O.K., Harper & Row,
New York.

U n
Chhabra, T.N., (2017). Management Process & Organizational
,
u

L
Behaviour, Sun India Publication. Delhi.

S O
4.15 Suggested Readings
L /
u

C O
Eric Berne, (1961). Transactional Analysis in Psychotherapy, Grove

E /
Press, New York.
Chhabra, T.N., (2017). Management Process & Organizational
C
u

D
Behaviour, Sun India Publication. Delhi.

©D
u Gupta, C.B., (2018). Management Process and Organizational
Behaviour, S. Chand & Company Limited, New Delhi.

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
L E S S O N

5
Motivation at Work
Dr. Reema Aggarwal
Assistant Professor
Department of Distance
& Continuing Education,

i
Campus of Open Learning, University of Delhi
Email-Id: [email protected]
l h
STRUCTURE
D e
5.1 Learning Objectives
of
ty
5.2 Introduction
5.3 Process of Motivation
s i
5.4 Approaches to Motivation
e r
5.5 Maslow’s Need Hierarchy Theory
i v
5.6 McClelland’s Theory of Needs
U n
5.7 Alderfer’s ERG Theory
L ,
5.8 Herzberg Two Factor Theory
S O
/
5.9 Comparison Between Maslow’s & Herzberg’s Theory of Motivation
5.10 Theory X and TheoryLY

C O Theory
5.12 Equity Theory/
5.11 Vroom’s Expectancy

C E Theory
D D
5.13 Goal Setting
5.14 Reinforcement Theory
5.15©Types of Motivation: Cognitive Evaluation Theory
5.16 Application of Motivation Concepts
5.17 Alternative Work Arrangements
5.18 Management by Objectives (MBO)
5.19 Employee Involvement Program
5.20 Summary

124 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

5.21 Answers to In-Text Questions Notes

5.22 Self-Assessment Questions
5.23 References
5.24 Suggested Reading

5.1 Learning Objectives

At the end of this lesson, the student should be able to:
h i
u Define Motivation.
e l
u Explain the need for and process of motivation in an organisation.
D
of
u Understand the importance of motivation in an organisation.

ty
u Explain various theories of motivation.
u

s i
Differentiate between content and process theories of motivation.
CASE STUDY
e r
i v
Amrita and Shweta together have recently joined “Edu Drive”. Edu

U n
drive is an innovative learning organisation that collaborates with
various schools and promotes the concept of experiential learning.

L ,
The office is near to Amrita’s house, Amrita finds the job suitable

O
to her in terms payment and location. Whereas it takes 30 minutes

S
/
for Shweta to reach office. At the Edu Drive, Amrita works under

O L
the supervision of Mr. Das, and Shweta works under the supervision
of Mr. Jain. As managers, Mr. Jain and Mr. Das are quite different.

/ C
Mr. Jain supports job rotation, employee participation, equal treatment
E
to all subordinates, etc. He assigns different tasks each week to
C
D
reduce boredom; This also allows employees to understand how the

©D
tasks are operated Edu drive, as they are allowed to do a variety of
tasks. For instance, Shweta has worked at the content/ PowerPoint
presentation development, video development and addressing queries
through online portal. In addition to this, Mr. Jain also motivates
Shweta to address concerns of teachers in case of urgency.
Mr. Das, on the other hand, feels it is essential to specialize in a
particular task, due to which he prefers repeating the same task. For
instance, Amrita has only worked on Organizing and formatting the
content and PowerPoint presentations.

PAGE 125
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Mr. Das supports specialization and is very particular about time.
According to him, monetary and non-monetary benefits could vary
from person to person. Two employees in the same position could
receive different benefits based on their performance.
On a fine day, Amrita met Shweta at lunch. Since morning Amrita
has been formatting documents. During lunch hour, Amrita shared
her awful experience with Shweta.
Amrita - I am tired of this monotonous job. Every day I do the
h i
same thing.
e l
D
Shweta - Why don’t you tell Mr. Das you want something else? I

of
have heard he allows Daisy to work in other areas, even though I
have heard daisy is paid $2 more an hour. Is that true?

ty
Amrita - Yeah, though I do exactly what she does. What I don’t do
i
s
is tell Mr. Das how cool his dressing sense is. If you ask me, his
r
e
dressing sense is pathetic.

i v
Shweta - That’s bad. You put in equal effort.

U n
Amrita - Efforts? In what? Formatting PPts. This job is so meaningless.

,
Even if I format more documents what will I get, another badge that
says a good job.

O L
S
Anyhow, what about you? How’s your job going?

L /
Shweta - Pretty good. Today Mr. Jain and I discussed targets that

O
I have to achieve in the next week. It is to counsel 40 teachers at

C
/
TGT level. Through my contacts, If I succeed in doing so, then I’ll

C E get a bonus of $75. It is difficult, but I want to give it a shot.

Amrita - Good to know. I would have left this job if I didn’t have
D monetary constraints.

©D Shweta - Look at the brighter side; you are paid more than Rahul.
Rahul joined before you joined.
Amrita-True. Rahul gives way too much effort, and to me, it doesn’t
even make sense. If daisy is getting more pay, then I think daisy
should also take all responsibilities as well.
Shweta - I understand. Mr. Jain is the best supervisor.

126 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

Amrita - (while looking at the watch) yeah, I am getting late; Mr. Notes
Das is very particular about time. He expects his subordinates to
reach 5 minutes before time. I think it’s time to format documents.
(Please refer to page no. 200 for questions related to opening case
study)

5.2 Introduction

h i
A manager’s responsibility is to inspire staff to perform their tasks
effectively. So how do managers accomplish this? The solution is
e l
“Motivation”, the process through which managers make employees more
D
of
productive and effective. It is the process in which basic need leads to
creating drives aimed at a goal. Highly driven people put in much effort

i ty
at their jobs, whereas those who lack motivation do not. Employees who

r s
are “happy” are sometimes mistaken for those who are “motivated.” These

e
may be connected, but motivation reflects the degree of drive workers
v
n i
have to put in regardless of their level of enjoyment. It is a force that
directs employees to act in a certain way. Motivated employees are more
U
productive and engaged and feel more immersed in their work.
,
O L
The phenomenon of motivation is complex, with multiple definitions.
The common frame of reference contains one of the following words in

/ S
the definition: drives, goals, incentives, desires, wants and needs. The

O L
motivation process accounts for an individual’s intensity, direction and
persistence of effort toward achieving a goal. The concept of motivation

/ C
is situational and its level varies between different individuals at
E
different times. If you understand what motivates people, you have the
C
D
most powerful tool for dealing with them at your command. Motivating

©D
employees is one of the most crucial roles of management. It includes the
skills of communicating, leading by example, challenging, encouraging,
obtaining feedback, involving, informing, briefing and rewarding.
Motivation is a catalyst since it impacts the intensity of willingness
and the level of work a person puts forth to attain organisational
goals.

PAGE 127
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes
5.3 Process of Motivation
The motivational process begins with identifying an employee’s needs
and drives. Needs are the deficiencies a person experiences at a point in
time that makes specific outcomes appear attractive. These deficiencies
cause psychological (e.g., need for recognition) or physiological (e.g.
need for water, shelter, or food) imbalances within the individuals. The
deprived person, in turn, examines the environment (surroundings) to find
the sources to gratify these imbalances. An unsatisfied need often acts
h i
e l
as an energizer as they create tension within the individuals. Therefore,
employees explore ways to satisfy them.
D
of
Next comes the effort given by employees within a context of opportunity
(resources at disposal) to bridge the gap. Actions should be goal-oriented,

i ty
as motivation is primarily goal-directed. Goal-directed efforts lead to

s
performance towards which skill and technology (i.e., ability) undoubtedly
r
e
contribute significantly. In the next phase, if performance is suitably

i v
rewarded, it results in need satisfaction. Finally, once the employees have

n
received rewards, they reassess their needs.

U
Environment
L ,
O
Opportunity

/ S
L
Needs and
Tension Effort Performance Rewards

O
drives

/ C Goal & Incentives

C E
D
Need satisfaction

©D Figure 5.1 : Process of Motivation

The managers have a challenge to cater to diverse employees and their
needs to help employees get attuned to working in different cultures.
Training and retaining the exemplary employees and supporting their growth
is another reason managers need to utilize the insights and implications
suggested by motivational theories. Several theories attempt to explain
how motivation works. The foundation of these motivation theories took
place during the 1950s. In management circles, probably the most popular

128 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Motivation at Work

explanations of motivation are based on the needs of the individual. Notes

However, there has been a shift in the business environment with regard
to globalization in terms of blending of work cultures and social cultures,
increasing participation of women, raising awareness of the issue, and
increased competition. All this has made motivation prominent subject.

5.4 Approaches to Motivation

Several theories attempt to explain how motivation works. The theories
h i
can be broadly categorized into Cognitive and non-cognitive models.
e l
D
of
5.4.1 Cognitive Models

ty
The cognitive model of motivation consists of theories that focus on

i
the human mind’s internal state. The focus is on mental processes that
s
r
emerge from human needs, desires, expectations, and drives. Theories

e
v
under the cognitive model could be further subdivided into Content and
Process theories.
n i
5.4.1.1 Content Theories

, U
Content (or need) theories of motivation focus on factors internal to the
L
individual that energize and direct behaviour. These theories suggest
O
S
that people have certain needs and/or desires which are internalized. In

L /
general, such theories regard motivation as the product of internal drives

O
that compel an individual to act or move (hence, “motivate”) toward

/ C
satisfying individual needs. It answers the following question-

C E“WHAT MOTIVATES EMPLOYEES?”

The motivation process starts with specific unsatisfied needs (as mentioned
D
©D
above). These psychological and physiological needs create tension in the
mind of employees. The employees explore ways and act in a particular
manner to satisfy these unsatisfied needs. Content theories explain
different types of needs within employees. Following are some popular
content theories-
u Maslow’s Need Hierarchy Theory
u Herzberg’s Motivation Hygiene Theory
u Alderfer’s ERG Theory
u McClelland’s Needs Theory
PAGE 129
© Department of Distance & Continuing Education, Campus of Open Learning,
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 5.4.1.2 Process Theories

Process theories are concerned with determining how individual behaviour
is directed and maintained in the specifically self-directed human cognitive
processes. Process theories of motivation are based on early cognitive
ideas which posit that behaviour results from conscious decision-making
processes. It looks at what people are thinking about when deciding
whether to put effort into a particular activity. It answers the following

i
question-how motivation occurs?
Theories of Motivation
l h
D e
of
Cognitive Models Non-Cognitive Models

ity
Reinforcement
Content Theories Process Theories

s
Theory

e r by B.F. Skinner

Maslow’s Need
i v
Vroom’s Expectancy

n
Hierarchy Theory Theory

, U
Alderfer’s ERG

LTheory Adam’s Equity theory

S O
/
McClelland’s Need Goal Setting Theory

L
Theory By Edwin Locke

C O Herzberg’s Motivation

E / Hygiene Theory

D C Theory X and
Theory Y

©D Figure 5.2: Cognitive and Non-Cognitive Models of Motivation

Process theories explain process within the human mind that leads to
motivation. Following are some popular process theories-
u Vroom’s Expectancy Theory
u Adam’s Equity theory
u Goal Setting Theory

130 PAGE
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 Motivation at Work

5.4.2 Non-Cognitive or Reinforcement Model Notes

Unlike the cognitive model, which focuses on the internal state, the non-
cognitive model focuses on external forces. If an action is rewarded,
the employee is motivated to repeat the action. Similarly, if action is
punished, employees will be motivated not to repeat it. A manager could
use various external forces, like rewarding, punishing, ignoring, etc., to
motivate employees to behave in a particular manner. Both cognitive and
non-cognitive models are complementary to each other. It is not mutually
h i
exclusive. It means both models work together to motivate employees.
e l
IN-TEXT QUESTIONS
D
of
1. The motivational process begins with identifying an employee’s
______ and _____.

i ty
2. These theories of motivation could be broadly categorized into
_______ and _______ models.
r s
v e
3. Cognitive model of motivation consist of theories that focus on
________.
n i
,
sub-divided into ______ and _______. U
4. Theories of motivation under cognitive model could be further

O L
5. Content theories do not include:

/ S
(a) Maslow’s Need Hierarchy Theory

L
(b) Herzberg’s Motivation Hygiene Theory
O
C
(c) McClelland’s Needs Theory
/
C E
(d) Adam’s Equity Theory
6. Process theories do not include:
D
©D
(a) Alderfer’s ERG Theory
(b) Goal Setting Theory By Edwin Locke
(c) Vroom’s Expectancy Theory
(d) Adam’s Equity Theory

PAGE 131
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes
5.5 Maslow’s Need Hierarchy Theory
It is one of the popular motivation theories given by A.H. Maslow. Maslow
suggested that employees’ needs are arranged in a particular hierarchy (as
shown in figure 5.4). As lower-order needs are satisfied, the hierarchy’s
next need becomes dominant. From the standpoint of the theory, we
could say that no need is ever gratified. A substantially satisfied need
no longer motivates. Maslow separated the needs into higher and lower-

h
order needs. Physiological and safety needs are lower-order needs, whilei
e l
higher needs are social esteem and self-actualization. The differentiation

D
is that the higher-order needs are satisfied only within a person, and the

of
lower-order needs are satisfied by material things. Following is a brief
on various categories of need as mentioned by Maslow-
u

i ty
Physiological Needs: Physiological needs are basic needs important

s
for human survival, like water, food and shelter. Unless these basic
r
e
needs are fulfilled, other needs won’t be able to motivate employees.

i v
Safety and security Needs: Once physiological needs are met, one’s

n
u
attention turns to safety and security needs. Such needs might be

, U
fulfilled by living in a safe area, medical insurance, job security

O L
and financial reserves.
Social Needs: Employees are social beings. The need for social
S
u

L /
circle and belongingness remains important. Social needs are the
first higher-level wants that become essential after a person has

C O
satisfied their lower-level physiological and safety requirements.

E
u
/ Ego or Esteem Needs: Esteem needs may be classified as internal

C
or external. Internal esteem needs are related to self-esteem, such

D as self-respect, independence, and achievement. External esteem

©D
needs are social status and recognition. Some esteem needs are
self-respect, attention, recognition, and reputation.
u Self-Actualization: It is the quest of reaching one’s full potential as
an individual. Unlike lower-level needs, this need is never fully
satisfied as one matures. There are always new opportunities to
continue to grow. Self-actualized people tend to have needs such as
truth, justice, wisdom, and meaning. They have frequent occurrences
of peak experiences, which are energized moments of profound
happiness and harmony.

132 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

Note: However, not all people are driven by the same needs - at any Notes
time, different people may be motivated by different factors. To motivate
employees, managers must recognize the needs level at which the employee
is operating and use those needs to motivate employees.
Need hierarchy and motivators that satisfy the needs are shown in the
following figure:
Needs Motivators

h i
e l
s
ed

D
ne

Self-actualisation Opportunities for

of
er

(Need for challenging and

ord

development and innovative jobs

creativity)
er
gh

ty
Ego Prestigious job
Hi

i
(Need for power, recognition positions and
and prestige belongingness) locations

r s
s

Social
ed

Harmonious working

e
e

(Need for love and

rn

relations

v
belongingness)

ni
rde
ro

Safety Money and fringe

we

(Need for shelter and benefits like insurance

U
Lo

stability) and retirement benefits

L ,
Physiological
(Need for air, water, food, health etc.)
Money

S O
Figure 5.3 : Maslow’s Need Hierarchy

L /
O
5.5.1 Appraisal of Maslow’s Need Hierarchy Theory
C
E /
The theory suggests that needs follow a definite sequence. However, due

D C
to cultural differences, this may not hold. Some cultures appear to place
social needs before others (for example, Spain and Belgium workers felt

©D
this way). Similarly, some assumptions might not work in all cases; for
example, employees won’t move to the next level need unless a lower
need is fulfilled. Also, satisfied needs won’t motivate employees further.
Finally, there is little evidence to suggest that people are motivated to
satisfy only one need level at a time, except when there is a conflict
between needs. A “multiplicity of motives often guides employees”. Even
though Maslow’s hierarchy lacks scientific support, it is pretty well-known
and is the first theory of motivation to which many people are exposed.

PAGE 133
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 differences, this may not hold. Some cultures appear to place social needs before others (for
example, Spain and Belgium workers felt this way). Similarly, some assumptions might not
work in all cases; for example, employees won't move to the next level need unless a lower
need is fulfilled. Also, satisfied needs won't motivate employees further. Finally, there is little
evidence to suggest that people are motivated to satisfy only one need level at a time, except
when there is a conflict between needs. A "multiplicity of motives often guides employees".
Even though Maslow's hierarchy lacks scientific support, it is pretty well-known and is the
MBAFT 6101 ORGANIZATIONAL BEHAVIOUR
first theory of motivation to which many people are exposed.

Notes

h i
e l
D
of
i ty
r s
v e
Figure
Figure 3 Maslow Needs
i
5.4 : Theory
hierarchy

n
Maslow Needs Hierarchy Theory MBA

6.6
, U
5.6 McClelland’s Theory of Needs
MCCLELLAND’S THEORY OF NEEDS

L
155 | P a g e

O
David
Three McClelland
need of
© Department modelproposed
Distance that an individual’s
is &formulated
Continuing by `David
Education, specific
Campus needs
McClelland’.
of Open are acquired
David
Learning,

/ S
McClelland proposed
over time, shaping that
School an individual's
one’s specific
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experiences. are acquired
UniversityThe over time, shaping one's
needs can be classified
of Delhi

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life experiences. The needs can be classified under three categories: Achievement, Affiliation,
under threeAlso
and Power. categories:
termed as theAchievement, Affiliation,
need for affiliation (n Aff), the need and Power.
for power Also
(n Pow), and termed
the

C O
as the need for affiliation (n Aff), the need for power (n Pow), and the
need for achievement (n

/
Ach).
need for achievement (n Ach).

C E Need for

D D Achievement

© Three
Need
Need for
Power
Theory
Need for
Affiliation

Figure
Figure 4 Three Need Theory 5.5 : Three Need Theory
Need for achievement ( n Ach) refers to the drive to excel, grow, strive, and succeed to a
134 PAGE set of standards. People who need achievement differentiate themselves from others by their
desire to do things better. They try to seek situations where they can achieve rapid feedback
© Department of Distance & Continuing Education, Campus of Open Learning,
on their performance. Such individuals set moderately challenging goals. They are not
School of Open Learning, University of Delhi
gamblers, but they take up situations where the probability of winning is 50 -50. Such
individuals also prefer to work hard and take personal responsibility for failures.

Need for power (n pow): The need to make others behave in a particular manner in which
they wouldn't have acted otherwise. The need for power is the desire to have an impact on
others or to be able to influence or control others. Individuals with high 'Power Need' enjoy
 Motivation at Work

Need for Achievement (n Ach) refers to the drive to excel, grow, Notes
strive, and succeed to a set of standards. People who need achievement
differentiate themselves from others by their desire to do things better.
They try to seek situations where they can achieve rapid feedback on
their performance. Such individuals set moderately challenging goals.
They are not gamblers, but they take up situations where the probability
of winning is 50 -50. Such individuals also prefer to work hard and take
personal responsibility for failures.
Need for Power (n Pow): The need to make others behave in a particular
h i
manner in which they wouldn’t have acted otherwise. The need for power
e l
is the desire to have an impact on others or to be able to influence or
D
of
control others. Individuals with high ‘Power Need’ enjoy being in charge
and prefer to be placed in competitive and status-oriented positions.

ty
McClelland categorized power into two categories, institutionalized and

s i
personalized power. Here institutionalized power refers to the power used

e r
for social benefit, and personalized power refers to the power exercised
for individual gain.
i v
U n
Need for Affiliation (n Aff): The desire for friendly and close interpersonal
relationships. It refers to the need for affiliation, i.e. the desire to be

L ,
liked and accepted by others. Individuals with this need strive to maintain

O
friendships and prefer cooperative situations.

/ S
L
5.6.1 Implication of the McClelland’s Theory of Needs
O
/ C
McClelland’s achievement motivation theory suggests that:

C E
A strong ‘affiliation-motivation’ undermines manager’s objectivity, because
of their need to be liked, and this affects a manager’s decision-making
D
©D
capability. The focus is more on relationships than organisational goals.
A strong ‘authority-motivation’ need produces a determined work ethics
and commitment to the organisation. People are attracted to the leadership
role but they may not have the flexibility and people-centred skills.
Those with high personal power maximise personal goals and are,
therefore, not good managers. Those with high institutional power focus
on organisational goals and are generally good managers.

PAGE 135
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes People with strong ‘achievement motivation’ make the best leaders. They
are good entrepreneurs although there can be tendency to demand too
much from the staff. They believe that everyone is highly achievement-
focused and results driven, which is not always true.
A research conducted on these needs revealed that:
u Managers usually have high achievement and power needs and low
affiliation needs.
u

h i
As people at higher levels have by-far satisfied their achievement

companies, and middle and lower-level managers.

e l
needs, these needs are more prominent in executives of smaller

D
of
However, such people are usually found low on affiliation needs. They
believe only in work.

ty
Successful managers have the following need-profile:

s i
1. Moderate need for achievement so that personal growth and

e r
organisational growth are compatible.

i v
2. Moderate to high need for institutional power to concentrate on
organisational goals.
U n
L ,
3. Minimum need for affiliation to focus goals on a friendly environment.
Managers develop this need profile to set high goals, expand business

S O
and establish new units.

L /
Certain problems have also been identified in theory: The degree

O
to which we have each of the three needs is difficult to measure, and

C
/
therefore the theory is difficult to put into practice. It is more common

C Eto find situations where managers aware of these motivational drivers

label employees based on observations made over time. Therefore, the
D concepts are helpful but not often used objectively.

©D 5.7 Alderfer’s ERG Theory

The ERG theory is an extension of Maslow’s hierarchy of needs. The
theory was developed to reduce the overlap between the five needs
described by Maslow. Maslow’s need theory was condensed into three
types of needs, namely, existence, relatedness, and growth by Alderfer.
It also assumes that no rigid structure of needs hierarchy is followed.

136 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

u Existence Needs: The existence needs comprise all those needs that Notes
relate to the physiological and safety aspects of human beings and
are a prerequisite for survival. Thus, Maslow’s physiological and
safety needs are grouped into one category because of their same
nature and similar impact on individual’s behaviour.
u Relatedness Needs: The relatedness needs refer to the social needs,
that an individual seeks to establish relationships with those he cares
for. The relatedness needs refer to our desire to maintain essential
relationships interpersonally. These align with Maslow’s social needs
h i
and the external component of Maslow’s esteem needs.
e l
Growth Needs: Growth needs refers to the intrinsic desire for
D
of
u
personal development and the characteristics included under self-
actualization. The ERG theory demonstrates that more than one

i ty
need may be operative simultaneously, and if the gratification of a

s
higher-level need is stifled, the desire to satisfy a lower-level need
r
e
increases. Thus, growth needs influence an individual to explore

v
Principles of ERG Theory
n i
the maximum potential in the existing environment.

Alderfer talks of two principles :

, U
1. Satisfaction - Progression Principle
O L
/ S
2. Frustration - Regression Principle

O L
1. Satisfaction - Progression Principle: According to this principle,
as one need is satisfied, even in part, it leads to progression,

/ C
of other needs. People can also satisfy two needs at a time.

E
Social needs and growth needs may be present at the same
C
D
time. As satisfaction of lower-order need increases, it is,

©D
replaced by another need. Thus, people progress to higher-
order needs when lower-order needs are satisfied.
Thus, contrary to Maslow’s theory, different need categories
can be satisfied simultaneously.
2. Frustration - Regression Principle: Alderfer proposed a
regression theory to go along with the ERG theory. When
needs in a higher category are not met, individuals put efforts
in a lower category need. For example if self-actualisation
or self-esteem is not met, people invest more efforts in the

PAGE 137
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR
MBA

Notes gratification of a higher-level

relatedness category need is stifled,the
to achieve the higher
desire toneed.
satisfyManagers,
a lower-level need
increases. Thus, growth
therefore, provideneeds are thosetoneeds
motivators avoidthat influence and
frustration an individual
regressionto explore
the maximum potential
down the needinhierarchy.
the existing environment.

Growth
h i
e l
Relatednes f D
o
Existence i ty
r s
v e
i
Figure 5.6 : Alderfer’s ERG Theory

U n
5.8 Herzberg Two Factor Theory

L ,
Figure 5 Alderfer's ERG Theory
Frederick Herzberg proposed the two-factor theory of motivation. An

S OTWO FACTOR ThEORY

empirical study was conducted using a sample of 200 engineers and

L /
6.8. hERZBERG
accountants, and based on the study’s findings, the various needs were

O
categorized into two factors, namely, hygiene factors and motivators.
Frederick Herzberg proposed the two-factor theory of motivation. An empirical study was

/ C
Hygiene using
conducted factors, which were
a sample of 200previously
engineers thought to be theand
and accountants, motivators,
based on do
the study's

C Enot result in motivation but are necessary to bring the level of motivation
findings, the various needs were categorized into two factors, namely, hygiene factors and
to a start level or platform so that the motivation of personnel from that
motivators.

D D platform becomes easier. It was reported in the study that the presence
Hygiene factors, which were previously thought to be the motivators, do not result in

©
of hygiene factors would not cause satisfaction, but their absence would
motivation but are necessary to bring the level of motivation to a start level or platform so
cause dissatisfaction. Hygiene factors must be present in the Job before
that the motivation of personnel from that platform becomes easier. It was reported in the
motivators can be used to stimulate that person.
study that the presence of hygiene factors would not cause satisfaction, but their absence
would cause dissatisfaction. Hygiene factors must be present in the Job before motivators can
be used to stimulate that person.

158 | P a g e

© Department of Distance & Continuing Education, Campus of Open Learning,

School of Open Learning, University of Delhi
138 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organizational Behavior
Motivation at Work

Notes

Hygiene Factors
(Job‐
Dissatisfaction)
Motivating Factors
(Job‐ Satisfaction)

h i
e l
D
of
Figure 6 herzberg's Theory Figure 5.7 : Herzberg’s Theory
One
One cannot
cannot useusemotivators
motivatorsuntil
until
allall
thethe hygiene
hygiene factors
factors are met.
are met. Herzberg’s
Herzberg's needs are

ty
needs are specifically job-related and reflect some of the distinct things
i
specifically job-related and reflect some of the distinct things people want from their

s
people
work aswant fromtotheir workHierarchy
as opposed to Maslow’s Hierarchy of needs
Needsin a
r
opposed Maslow's of Needs which reflects all the

e
which
person'sreflects allfollowing
life. The the needs in ashows
table person’s life. The between
the difference following table factors
hygiene shows and
the difference between hygiene factors and motivators-
motivators-
i v
Hygiene factors
hygiene factors
U n
Motivators Motivators
Absence results in dissatisfaction; Absence results in no satisfaction;

L ,
presence results in no dissatisfaction presence results in satisfaction
recognition, MBA
O
Absence
Examples-results
company inpolicy,
dissatisfaction;
administra- Absence
Examples-results in no satisfaction;
Achievement,

S
tion, supervision, working conditions, presence
work itself, responsibility,
in satisfactionand growth
/
presence results in no dissatisfaction results

L
equitable salary

C O
Examples- company

E /policy, Examples- Achievement, recognition,

administration, supervision, working work itself, responsibility, and growth

C
conditions, equitable salary

D
Dissatisfied

©D

Figureof5.8
Figure 7 Examples : Examples
hygiene of hygiene
and motivation and motivation factors
factors 159 | P a g e
Herzberg also reported that both factors are uni-dimensional, i.e., the effect could only be
© Department of Distance & Continuing Education, Campus of Open Learning,
seen in one direction.School
In other words,Learning,
of Open hygiene factors are of
University maintenance
Delhi factors or dissatisfiers,
meaning if they are present, they act as a maintenance factor, and if they are not, they act as aPAGE 139
© Department
dissatisfier. Either way, they of Distance
won't & Continuing
motivate employees.Education,
Similarly,Campus of Open
motivators Learning,
are satisfiers,
School of Open Learning, University
which means they tend to motivate the employees if they are present. of Delhi

6.8.1. Contribution of herzberg's Two-Factor theory- Herzberg's two-factor theory has

two essential Contributions.
First, improving work conditions and basic pay won't motivate employees to give higher
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Herzberg also reported that both factors are uni-dimensional, i.e., the effect
could only be seen in one direction. In other words, hygiene factors are
maintenance factors or dissatisfiers, meaning if they are present, they act
as a maintenance factor, and if they are not, they act as a dissatisfier.
Either way, they won’t motivate employees. Similarly, motivators are
satisfiers, which means they tend to motivate the employees if they are
present.

5.8.1 Contribution of Herzberg’s Two-Factor Theory

h i
e l
D
Herzberg’s two-factor theory has two essential Contributions.

of
First, improving work conditions and basic pay won’t motivate employees
to give higher performance. On the contrary, it would only reduce

ty
dissatisfaction among employees. It gave managers a different perspective,
who believed this could motivate employees.
s i
e r
Secondly, Herzberg stressed that “work itself” is a motivator. It also gives

i v
a better understanding of the term “Job enrichment”.

n
Additionally, Herzberg mentioned that today’s motivator is tomorrow’s
U
,
hygiene factor. Because eventually, human needs shift to other needs.

O L
Herzberg’s Two Factor Theory continues to be essential for management
in motivating their employees. His idea that satisfaction and dissatisfaction

/ S
do not form a continuum, that one decreases with another increase, still
L
holds. In fact, companies today are increasingly looking for ways to enrich
O
C
their team’s work. They are building enrichment into the appraisal and

E /
review process and investing in training and development opportunities.

C
Job engagement has also become a key focus.

D Example: TESCO today focuses on factors causing satisfaction as well

©D
as dissatisfaction. Employees are motivated and empowered by timely and
appropriate communication, involving personnel in decision-making, and
delegating wherever possible. Forums are held every year in which staff
can provide input on pay raises. Tesco personnel even get an opportunity
to give their input when restaurant menus are designed, helping to prevent
feelings of alienation and dissatisfaction.

140 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

Notes
5.8.2 Relationship between Herzberg’s Theory and
McClellands’ Theory of Motivation
People with high achievement (n Ach) are more inclined towards motivators,
whereas those who score low in achievement (n Ach) are more inclined
towards maintenance factors.
For example, managerial people are expected to score high on achievement.

h i
5.8.3 Appraisal of Herzberg’s Two Factor Theory
e l
Herzberg’s theory argues that job enrichment is required for intrinsic
D
of
motivation. According to Herzberg, the job should have a sufficient
challenge to utilize the full ability of the employee. If the motivation-

i ty
hygiene theory holds, management must not only provide hygiene factors

s
to avoid employee dissatisfaction but also provide factors intrinsic to the
r
e
work itself for employees to be satisfied with their jobs. Herzberg’s theory

v
reasons-
n i
is highly appreciated but has also been criticized due to the following

, U
1. Limited sample of Professions: The study’s finding was based on

O L
the limited sample of professionals, who might value challenging
tasks, but it is difficult to generalize the findings or say that financial

/ S
benefits or payments are not a motivator.

L
2. Too much emphasis is given to the enrichment of jobs: For
O
C
example- Employees do get satisfaction through status and pay;
/
but such components have not been given much focus.
E
D C
3. Situational factors have been ignored. For example, pay may motivate
a lower-level worker, but the same is not true for an employee at

©D
higher level.
IN-TEXT QUESTIONS
7. Physiological and safety needs are the _______ of motivation
given by A.H. Maslow.
(a) Lower order needs
(b) Higher-order needs

PAGE 141
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (c) Important needs

(d) Required needs
8. Higher order needs are _________ and __________.
(a) Social esteem
(b) Self-actualisation
(c) Safety needs
(d) Both (a) and (b)
h i
e
9. _________proposed the two-factor theory of motivation.
l
(a) Frederick Herzberg
D
of
(b) A.H. Maslow

ty
(c) Alderfer
(d) Locke
s i
e r
10. Absence of Hygiene factors results in dissatisfaction, presence
results in__________.
i v
n
(a) No dissatisfaction
U
,
(b) Satisfaction

L
(c) Achievement
O
S
(d) Dissatisfaction
/
O L
11. _______ argued that job enrichment is required for intrinsic
motivation.

/ C (a) Herzberg’s Two-factor Theory

CE
(b) Maslow’s Need Hierarchy Theory

D D (c) Alderfer’s ERG Theory

©
(d) McClelland’s Needs Theory

5.9 Comparison between Maslow’s & Herzberg’s Theory

of Motivation
Relationship between Maslow and Herzberg Models
Both the theories focus on needs of individuals. While Maslow talks of

142 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

hierarchical arrangement of needs, Herzberg does not arrange the needs Notes
in sequence.
In Maslow’s theory, same set of factors are motivators when they are
present and dissatisfiers, when they are absent from the job. Herzberg
formulated two sets of factors, motivators and dissatisfiers.
Maslow identifies strong needs in a person and Herzberg describes the
factors that satisfy those needs. If physiological and safety needs are

i
stronger than other needs, managers provide hygiene factors to avoid
dissatisfaction at work. If self-actualisation needs or achievement and
l h
growth needs are stronger than other needs, they provide motivators on
the job.
D e
Maslow’s need-Hierarchy Herzberg’s Hygiene and
of
ty
Motivational factors

s i
Self-
actualisation
e r
Motivators

i v
needs

n
Ego needs

Social needs

, U Hygiene factors

L
Safety needs

Physiological needs

S O
L /
O
Relationship between theories of Maslow and Herzberg

C
E /
The figure indicates that physiological, safety, social and ego needs in
part (achieved through family status and not personal development) can
C
be satisfied through hygiene factors. Managers provide salary, bonus and
D
©D
good working conditions to avoid dissatisfaction at work. The part of
ego needs (which a person achieves through competence and skills) and
self-actualisation needs can be satisfied through motivators.
If managers identify the needs, they determine the factors that satisfy
those needs. If they identify the factors which motivate them to work,
the is dominant needs can be identified.
Need Hierarchy Theory (Maslow) Two Factor Theory (Herzberg)
1. The theory is based on general The theory is based on empirical
observation of human behaviour. findings.

PAGE 143
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organizational Behavior
MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes COMPARISON
6.9. Need BETWEEN
Hierarchy Theory MASLOWS’
(Maslow) & HERZBERGS’
Two Factor Theory (Herzberg)
ThEORY OF MOTIVATION
2. He arranges needs in hierarchy; starting He does not arrange needs in hierarchy.
from lower-order to higher-order.
There are some similarities
3. Motivators satisfy the and differences
strongest need between
Motivators Herzberg two factor theory
satisfy higher-order needs and
Maslow’s'
of theneed hierarchy. Herzberg's maintenance
individual. factors include part of self-esteem needs.
of individuals.
Esteem needs consist of two portions; one
4. Same factors can be hygiene or Hygiene is intrinsic in nature, likeand
factors recognition.
motivatorsRecognition
are
comes through competencies and achievements. Hence it acts as a motivator. However,
motivators depend­ing on the need two sets of factors.
esteem needs are extrinsic, like status gained through the position one occupies, which only
of individuals.

i
falls under the hygiene factor. As shown in figure 7, motivation factors are higher-order
5. He identifies needs that motivate He identifies the factors that satisfy
needs.
the behaviour. those needs.
l h
D e
of
i ty
r s
v e
n i
, U
O L
Figure 5.9 : Relationship between Maslow’s and Herzberg’s Model

/ S
Figure 8 Relationship between Maslow’s' and Herzberg’s' Model

L
Following are some noticeable differences between both the theories:

CO
Herzberg Maslow

E /
The theory given by Herzberg is based
on an empirical study.
It is not based on an empirical study.

D C The theory fails to explain the behaviour

of workers. It is more relevant for
It is true for all employees in general.

© D professionals.
Only higher-order needs are treated as All unsatisfied needs could be a motivator.
motivators.
It is prescriptive in nature. It is descriptive in nature
It doesn’t follow any sequence. It follows hierarchical arrangement
163 | Pof
age
needs.
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi

144 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

Notes
5.10 Theory X and Theory Y
Douglas McGregor formulates theory X and Y. After studying managers’
dealing with employees, McGregor identified two different viewpoints
based on the assumptions a manager follows while managing employees.
Theory X
Assumptions
u Employees in general do not like work and if possible, try to avoid
h i
it.
e l
u Unless manager closely supervise employees, it is difficult to ensure
D
of
task completion. Therefore, manager must push employees to work
through reward or punishment.
u

i ty
Employees lacks aspiration and dislike responsibility. They give more
weightage to job security.
r s
u Manager needs to direct them at every step.
v e
i
Under the first viewpoint, the manager believes that employees dislike
n
U
working and therefore it is important to direct them as managers. This

L ,
view point is based on the “Carrot and Stick Approach”. According to
the “Carrot and Stick” approach, a manager motivates employees through

O
rewards or makes them work through punishments. In other words, Theory
S
L /
X assumes that lower-order needs (as Maslow suggested) dominate the
employees. It represents a pessimistic viewpoint.
Theory Y
C O
Assumptions
E /
u

D C
Unlike Theory X, employees like their work.

©D
u Employees possess self-direction and self-control. They are dedicated
to achieve the goals set by organisation.
u Employees are loyal and committed towards organisations.
u Employees are ready to take responsibility, and they possess capabilities
to solve problems and complete the task on their own.
Unlike theory X, Theory Y is an optimistic viewpoint. Here, managers
assume that employees are self-motivated and like to work. If we look
at Maslow’s need hierarchy, then according to theory Y, employees are

PAGE 145
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes motivated by higher-order needs, like esteem and self-actualization needs

motivates employees.
Implication of Theory X and Theory Y
Theory Y encourages employee participation in decision making process.
It encourages decentralization. According to this theory, employees are
problem solver and know how to discover new ways to complete a task.
It is found to be more reasonable and valid as compared to Theory X.
Theory X Theory Y

h i
1. It holds pessimistic view about hu­
man nature. l
It holds optimistic view about hu­
man nature.
e
D
of
2. People dislike work and avoid People like work and take, rather,
responsibility. seek responsibility.

ty
3. They work to satisfy their lower- They work to satisfy their higher-

i
order needs. order needs.
4. Money and fringe benefits, like
r s
No n -fi n an ci al m o t i v at o rs l ik e

e
insur­
a nce and provident fund are acceptance and recognition are more
the main motivators.
i v effective than financial motivators.
5.
lack creativity.
U n
People are directed to work. They People are self-directed and creativity
at work.
6.
L
They resist change. ,
They do not take initiative to work. People initiate on their own. They
accept change as part of the work

S O environment.
7.
L /
They are not committed to organisa- They integrate personal goals with

O
tional goals. organisational goals.

C
8. Innovative and creative techniques Prob­lems are solved through creative

E /
for problems - solving are lacking. and innovative methods.

C
9. This theory applies if workers are This theory applies when workers

D
unskilled with no potential to work. are skilled, have high growth and

©D
development potential.
10. Authority is centralised and moves Authority is decentralised with
in hierarchy. participative decision-making
processes.
11. Leadership is autocratic in nature. It is democratic in nature.
Unfortunately, no evidence confirms that either set of assumptions is
valid. Theory X and Theory Y lack empirical support, which is vital for
accepting the OB theories.

146 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
Motivation at Work

IN-TEXT QUESTIONS Notes

12. Three need model is given______.

(a) David McClelland
(b) Frederick Herzberg
(c) A.H. Maslow
(d) Alderfer
13. The need for ______ is the desire to have an impact on others
h i
or to be able to influence or control others.
e l
D
(a) Affiliation

of
(b) Power
(c) Safety needs
(d) Achievement
i ty
r s
14. The desire for friendly and close interpersonal relationships. It
refers to the need for_______.
v e
(a) Affiliation
n i
(b) Power
, U
(c) Safety needs

O L
S
(d) Achievements

L /
15. People with high on _________ are more inclined toward
motivators.

C O
E /
(a) Achievement needs
(b) Affiliation needs

D C
(c) Safety needs

©D
(d) Social needs
16. The __________ is an extension of Maslow’s hierarchy of
needs.
(a) Herzberg’s Two factor Theory
(b) Goal Setting Theory by Edwin Locke
(c) Alderfer’s ERG Theory
(d) McClelland’s Needs Theory

PAGE 147
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 5.11 Vroom’s Expectancy Theory

Expectancy theory is part of process theories. Unlike previous theories,
where the focus was on what motivates employees? Expectancy theories
attempt to answer how motivation takes place in employees’ minds.
Expectancy, Instrumentality and Valence interact psychologically to create a
motivational force such that the employee acts in ways that bring pleasure
and avoid pain. In other words, individuals’ perception of the outcomes
of their actions and the value they add to the outcomes determine their
h i
e
of three components: Expectancy, Instrumentality, and Valence. l
motivation to do a particular action. Vroom’s theory of motivation consists

D
of
Expectancy (Effort -performance probability): Employees have different
expectations and levels of confidence about what they can do. Expectancy

ty
refers to an employee’s perception of his/her capabilities to perform the
given task. It could range from 0 to 1.
s i
e r
Example: If an employee believes that s/he lacks the required knowledge

i v
and the chances to complete the given task are zero, zero will be scored

U n
in expectancy. Similarly, if s/he believes that s/he will be able to complete
the task based on confidence level, higher score on expectancy would
be obtained.
L ,
O
Instrumentality refers to employees’ perception about receiving desired

S
/
rewards if they perform the given task. In other words, employees’ beliefs

O L
about doing specific actions will lead to promised rewards (strength of
relationship). It could range from 0 to 1.

/ C
Example: Let us assume an employee X needs a promotion. Suppose

C EEmployee X believes that his/her efforts will give him the promotion.

D
Then, s/he will score high on Instrumentality. Similarly, if s/he believes

©D
the efforts have nothing to do with promotion, s/he will score zero in
Instrumentality.
Valence: This represents employees’ preference for the reward. In other
words, it refers to how highly the employees value the rewards. It could
range from -1 to 1. If an employee is indifferent about the reward, his
valence will be zero.
All three components could be arranged in the form of an equation:
Motivation = Expectancy × Instrumentality × Valence

148 PAGE
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 Motivation at Work

All components should score above zero. If either of them becomes zero, Notes
motivation among employees will become zero. Conversely, motivation MBA
will be high if all three components score high.

Expectancy

h i
Instrumentality
Motivation
e l
D
of
i ty
r s
Valence
v e
n i
Figure
Figure 9 Vroom
5.10 expectancy
: Vroom
,
theory
expectancy theoryU
O L
5.12 Equity Theory
6.12 EQUITY ThEORY
/ S
O L
J.S. Adams formulated the Equity Theory of motivation. This theory helps
J.S. us understand
Adams the the
formulated
/ C
importance of equal
Equity Theory of treatment
motivation.ofThe
all equity
employees theoryin helps
an us

E
organisation. The theory explains the process through two components,
understand the importance of equal treatment of all employees in an organisation. The theory
namely
explains the process
the outcomes
subjective
D
judgementandC
inputs and outcomes.
through
inputs for
to balance
People usenamely
two components,
the comparing
outcomes and
subjective
other
inputsjudgment
employees
inputs with other
for comparing
to balance
and outcomes.
themselves.
People use
employees If with

©D
themselves.
people Iffeel
people
theyfeel
arethey
not are not equally
equally rewarded,
rewarded, they either
they either reduce
reduce the the quantity or
quantity
quality
or of work. of
quality However, if people perceive
work. However, thatperceive
if people they are rewarded
that they higher, then they are
are rewarded
motivated to work harder.
higher, then they are motivated to work harder.
This This
theorytheory believes
believes that a manager’s
that a manager's fair treatment
fair treatment and decisions
and balanced balanced are
decisions
crucial in an
are crucial
organisation in an that
and states organisation
an employeeand compares
states that an employee
his/her job's inputcompares his/ with
and outcomes
others,
her job input and outcomes with others, whether within or outside thethese
whether within or outside the organisation and then responds to eliminate
inequalities.
organisation and then responds to eliminate these inequalities.

PAGE 149
168 | P a g e
© Department of Distance & Continuing Education, Campus of Open Learning,
School
© Department of Distance of Open
& Continuing Learning,
Education, University
Campus of Open of Delhi
Learning,
School of Open Learning, University of Delhi
 Organizational Behavior
MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Inputs [What I put

into my job: Efforts,
loyalty, time,
knowledge, etc.]

Outputs [What I get

from my job: Pay,
h i
bonus, perks,
benefits, etc.]
e l
D
of
Figure 5.11 : Equity Theory
Figure 10 Equity Theory

ty
Here ‘Input’ refers to everything that an employee gives to the organisation

i
Here 'Input' refers to
(example-skills, everything efforts,
knowledge, that an employee gives
time, idea, to and
etc.); the organisation
‘Outcomes’ (example-skills,
refers

r s
knowledge, efforts, time, idea, etc.); and 'Outcomes' refers to various rewards that he receives
to various rewards that he receives from an organisation (for example-

e
from an organisation (for example- pay, recognition, promotion, benefits, friendly
pay, recognition, promotion, benefits, friendly relationships, etc.). The

i v
relationships, etc.). The employee tends to compare the inputs he gives to an organisation
employee tends to compare the inputs he gives to an organisation with

U n
with the outcomes he receives. Additionally, s/he tends to compare his input- outcomes ratio
the outcomes he receives. Additionally, s/he tends to compare his input-
with others.

,
outcomes ratio with others.

O L
According to Equity theory, employees take measures to re-establish fair treatment in case of
According to Equity theory, employees take measures to re-establish fair
inequity. Following are some examples through which employees could re-establish equity -
treatment in case of inequity. Following are some examples through which
employees
o could
/ S
re-establish
Changing their inputsequity - less effort.
by giving
u

O L
Changing theiroutcomes
o Changing inputs by
by giving less
asking for effort
higher returns
u
/ CChanging outcomes by asking for higher returns
o Plans to leave the organisation

CE
u Plans to leave the organisation
o Changing the employee with whom they compare themselves.

D D u Changing the employee with whom they compare themselves.

porter and Lawler's expectancy model is an improvement over the expectancy theory
Porter and Lawler’s expectancy model is an improvement over the
© formulated by Vroom. The model states that combining individual factors and the
expectancy theory formulated by Vroom. The model states that combining
environment determines behaviour.
individual factors and the environment determines behaviour.

169 | P a g e

© Department of Distance & Continuing Education, Campus of Open Learning,

School of Open Learning, University of Delhi
150 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
Motivation at Work

IN-TEXT QUESTIONS Notes

17. Theory X and Y are formulated by______.

(a) David McClelland
(b) Frederick Herzberg
(c) A.H. Maslow
(d) Douglas McGregor
18. Under this, manager believes that employees usually dislike
h i
working and therefore as a manager it is important to direct
e l
D
them:

of
(a) Theory X
(b) Theory Y
(c) Theory Z
i ty
(d) Three need theory
r s
19. Expectancy theory is part of__________.
v e
(a) Process theories
n i
(b) Content Theories
, U
(c) Non cognitive Theories

O L
S
(d) Reinforcement Theory

L /
20. _________refers to how highly do the employees value the
rewards.

C O
(a) Valence

E /
(b) Instrumentality

D C
(c) Expectancy

©D
(d) None of the above
21. “If people feel that they are not equally rewarded they either
reduce the quantity or quality of work or leave the organization.”,
the statement holds true as per—
(a) J.S. Adams Equity theory
(b) Equity theory by Edwin Locke

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (c) Alderfer’s Equity theory

(d) McClelland’s Equity theory

5.13 Goal Setting Theory

Edwin Locke and Gary Latham formulated the goal-setting theory. The
theory states that goals affect employees’ motivation. The goal-setting
theory emphasizes on the importance of setting specific and challenging

h i
but not impossible to attain.
e l
goals for achieving motivated behaviour. Challenging goals are difficult

D
of
Instead of giving vague tasks to people, specific objectives are more helpful.
It revolves around the concept of “Self-efficacy,” i.e., an individual’s

ty
belief that he or she can perform a given task. According to Locke and

i
Latham, goals affect individual performance through four mechanisms.
s
r
First, goals, direct efforts toward goal-related activities and away from

e
v
unrelated activities. Second, goals energise employees. Challenging

i
goals lead to higher employee effort than easy goals. Third, goals affect
n
U
persistence. Employees exert more effort to achieve high goals. Fourth,

,
goals motivate employees to use their existing knowledge to attain a goal

L
or to acquire the knowledge needed to do so.

O
S
The goal-setting model indicates that individuals have needs and values

/
that influence their desires. According to Maslow’s hierarchy of needs,
L
O
all individuals possess some basic needs. Individuals do, however, differ

C
in their values. Therefore, if an employee finds that they are not satisfied

E /
with the current situation, goal setting becomes a way of achieving what

C
they want.

D
©D
5.14 Reinforcement Theory
B.F. Skinner formulated reinforcement theory. This theory proposes
that behaviour is a function of its consequences. In other words, unlike
cognitive theories of motivation, other than the inner state, motivation
can be enhanced through external factors. People are motivated or
demotivated by the action of their consequences. Positive consequences
lead to people repeating their behaviour, whereas negative consequences
restrict employees from repeating their actions.

152 PAGE
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 Motivation at Work

Skinner argued that individuals’ internal needs and drives could be Notes
ignored because people learn to exhibit certain behaviours based on what
happens to them as a result of their behaviour. Skinner states that the
work environment should be made suitable for the individuals. He also
mentioned that punishments lead to frustration and de-motivation. Hence,
the only way to motivate is to keep making positive changes in the
organisation’s external environment. The focus is on operant conditioning.
There are two types of reinforcement, namely, positive and negative.
Positive reinforcement refers to the occurrence of a valued behavioural
h i
consequence that strengthens the probability of the behaviour being
e l
repeated. The specific behavioural consequence is called a reinforcer.
D
of
An example of positive reinforcement might be a salesperson that exerts
extra effort to meet a sales quota (behaviour) and is then rewarded with

i ty
a bonus (positive reinforcer). The administration of the positive reinforcer

s
should make it more likely that the salesperson will continue to exert the
r
necessary effort in the future.

v e
n i
Negative reinforcement refers to an undesirable behavioural consequence
that is withheld, with the effect of strengthening the probability of the

, U
behaviour being repeated. Negative reinforcement is often confused with

O L
punishment, but they are not the same. Punishment attempts to decrease
the probability of specific behaviours; negative reinforcement attempts to

/ S
increase desired behaviour. Thus, both positive and negative reinforcement

repeated.
O L
increase the likelihood that a particular behaviour will be learned and

/ C
An example of negative reinforcement might be a salesperson who exerts

C E
effort to increase sales in his or her sales territory (behaviour), followed

D
by a decision not to reassign the salesperson to an undesirable sales

©D
route (negative reinforcer). The administration of the negative reinforcer
should make it more likely that the salesperson will continue to exert the
necessary effort in the future.
As mentioned above, punishment attempts to decrease the probability
of exhibiting specific behaviours. Punishment is the administration of an
undesirable behavioural consequence to reduce the occurrence of unwanted
behaviour. Punishment is one of the more commonly used reinforcement
theory strategies, but many learning experts suggest that it should be used
only if positive and negative reinforcement cannot be used in the given

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes circumstances. For example, punishment might be demoting an employee

who does not meet performance goals or suspending an employee without
pay for violating work rules.
The purpose of extinction is to reduce unwanted behaviour. In this
manager tends to ignore the behaviour completely. Due to absence of
desired response, the employee avoids the behaviour.
For example, if an employee receives no praise for his/her contribution

i
for months, his/her desirable behaviours will diminish. Thus, managers

l
may continue to offer posit behavioural consequences to avoid unwanted
h
extinction.

D e
of
5.14.1 Schedules of reinforcement

i ty
The reinforcement schedule is timing the behavioural consequences

s
following a given behaviour. There are two broad types of reinforcement
r
e
schedules: continuous and intermittent. If a behaviour is reinforced each

i v
time it occurs, it is called continuous reinforcement. Researchers suggest

U n
continuous reinforcement is the fastest way to establish new behaviours or
eliminate undesired ones. However, this type of reinforcement is generally

L ,
not practical in an organisational setting. Therefore, intermittent schedules

O
are usually employed. Intermittent reinforcement means rewards are given

/ S
at irregular intervals. There are four types of intermittent reinforcement

O L
schedules: fixed interval, fixed ratio, variable interval, and variable ratio.
Fixed interval schedules of reinforcement occur when desired behaviours

/ C
are reinforced after set periods. The simplest example of a fixed interval

C Eschedule is a monthly paycheck.

D
The fixed ratio schedule of reinforcement applies the reinforcer after a

©D
set number of occurrences of the desired behaviours. For example, the
sales commission is based on the number of units sold. Like the fixed
interval schedule, the fixed ratio schedule may not produce consistent,
long-lasting behavioural change.
Variable interval reinforcement schedules are employed when desired
behaviours are reinforced after varying periods. Examples of variable
interval schedules would be special recognition for successful performance
and promotions to higher-level positions. This reinforcement schedule
appears to elicit desired behavioural change resistant to extinction.

154 PAGE
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 Motivation at Work

Finally, the variable ratio reinforcement schedule is the reinforcer after Notes
a number of desired behaviours have occurred, with the number changing
from situation to situation. The most common example of this reinforcement
schedule is the slot machine in a casino, in which a different and unknown
number of desired behaviours (i.e., feeding a quarter into the machine)
is required before the reward (i.e., a jackpot) is realized. Organisational
examples of variable ratio schedules are bonuses or special awards that
are applied after varying numbers of desired behaviours occur.

h i
5.14.2 Behaviour Modification and Reinforcement
e l
D
of
Behaviour modification is the use of empirically demonstrated behaviour
change techniques to improve behaviour, such as altering an individual’s

ty
behaviours and reactions to stimuli through positive and negative
reinforcement.
s i
Reinforcement theory applied to organisational settings
e r
i v
The best-known application of reinforcement theory principles to

U n
organisational settings is called behavioural modification or behavioural
contingency management. Typically, a behavioural modification program
consists of four steps:
L ,
u

S O
Specifying the desired behaviour as objectively as possible.
u

L /
Measuring the current incidence of desired behaviour.

O
u Providing behavioural consequences that reinforce desired behaviour.
u

/ C
Determining the effectiveness of the program by systematically

C E
assessing behavioural change.
Reinforcement theory is an important explanation of how people learn
D
©D
behaviour. Behaviour modification focuses on the external environment
by stating that manipulating consequences can affect behaviours. The
alternative consequences include positive and negative reinforcement,
punishment, and extinction. Reinforcement can be applied according to
continuous or partial schedules. The major benefit of behaviour modification
is that it makes managers conscious motivators. It encourages managers
to analyse employee behaviour, explore why it occurs and how often,

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© Department of Distance & Continuing Education, Campus of Open Learning,
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes and identify specific consequences that will help change it when those
consequences are applied systematically.

5.15 Types of Motivation: Cognitive Evaluation Theory

Motivation activates human behaviour and gives it direction. Cognitive
evaluation theory suggests that there are two types of motivation;
intrinsic and extrinsic. Intrinsic (internal) motivation is an internal state
or condition that drives behaviour, such as a hobby. On the other hand,
h i
l
extrinsic (external) motivation refers to direction from outside the person,
e
D
including the promise of rewards, the threat of punishments, intimidation,

of
and coercion. Both intrinsic and extrinsic motivations are essentially
related to goals.

5.15.1 Intrinsic Motivation

i ty
r s
v e
Any of the following may determine intrinsic motivation:

n i
1. Physiological States/Needs: Employees may seek sensory stimulation

U
to decrease hunger, thirst, or physical discomfort.

,
L
2. Emotional Needs: An employee may seek to calm over-aroused

O
emotions, increase good feelings, decrease negative emotions,

S
maintain optimism and enthusiasm, develop a sense of productivity,
/
L
or increase self-esteem.

O
3. Cognitive Needs: Employees may seek to increase knowledge and
C
E / understanding, maintain attention to interesting and personally
meaningful events and activities, solve problems, or resolve uncertainty

D C or confusion.

©D
4. Social Needs: Employee(s) may seek to be like a role model, to be
part of a group, to help others, or to be accepted by peers and have
friends.
5. Volitional/Self-Determination Needs: Finally, an employee may
seek to achieve goals that he has set for herself, take control of her
affairs, reduce others’ control over her (become self-determined),
or pursue her dreams.

156 PAGE
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 Motivation at Work

In summary, intrinsically motivated employees act as they do because Notes

of their own needs, goals drive them, and they like the outcomes, which
make them feel good — give them a sense of satisfaction. The motivation
agent is inside the person; they have an internal locus of control. It is
worth noting that the idea of reward for achievement is absent from this
model of intrinsic motivation since rewards are an extrinsic factor.

5.15.2 Extrinsic Motivation

h i
Management systems in many rehabilitation centers, schools, and homes
e l
D
are based on the assumption that people are extrinsically motivated and

of
will not engage in positive behaviour without external inducements.
The underlying belief is that most human resources engage in activities

ty
because they are directed to do so, because they are required to do so,

i
or because they are provided with either promise of rewards or threats
s
r
of punishment to sustain their participation. Thus rewards (e.g., monetary

e
v
or non-monetary) play an essential role. All factors mentioned above

i
(under reinforcement theory) represent external factors that motivate or
n
U
demotivate employees.
IN-TEXT QUESTIONS
L ,
O
22. The motivational process & not the Motivators as such is

S
/
associated with:

L
(a) Need hierarchy theory
O
C
(b) Two factor theory

E /
(c) Berg theory

C
(d) Expectancy theory
D
©D
23. Who has given the Reinforcement theory of motivation?
(a) Abraham Maslow
(b) David McClelland
(c) B.F. Skinner
(d) Frederick Herzberg

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 24. How many levels are there in Needs Hierarchy theory of
motivation?
(a) 2
(b) 3
(c) 4
(d) 5
25. Name the motivation theory based on Satisfaction-progression?

h i
(a) Alderfer – ERG theory
e l
(b) Maslow – Hierarchy of needs theory
D
of
(c) Herzberg – Two factor theory
(d) Skinner’s reinforcement theory

i t y
r s
5.16 Application of Motivation Concepts

v e
n i
It is essential to apply various motivational concepts to organisations.
Some of the applications of motivation and their linking with motivational

, U
theories are discussed below:

5.16.1 Job DesignLand Motivation: The Job Characteristics

S O
/
Model (JCM)
L
O
Job Design refers to how elements of a job are organised. The model
C
E /
states that any job could be described in terms of the following five
dimensions-

D C Skill Variety: The variety of activities an employee is expected to do

© D while performing a particular job. For example, an employee who invests

7 hrs in spraying paint scores low on this dimension, and a garage owner-
operator who is involved in various tasks like repair, customer interaction,
rebuilding engines, bodywork, etc., will score high on this dimension.
Task Identity: The degree of completion of work which makes the Job
an identifiable piece.

158 PAGE
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 Motivation at Work

Task Significance: The degree of impact a job has on the Job of others. Notes
Autonomy: The degree of freedom the job provides to an employee in
determining procedures, methods and scheduling of work to be carried out.
For example: If an employee at the customer care office is given a set
of procedures or questions for taking up queries, then such an employee
scores low on this dimension.
Feedback: Feedback is the degree to which an employee receives direct

i
and clear information about the performance.
From a motivational standpoint, if employees score high on these
l h
dimensions, they will be more motivated to perform than the situation
otherwise. In addition, employees with higher- order needs (like growth D e
of
or achievement) will prefer more autonomy. The dimensions could be

y
further used to compute a consolidated motivational potential score (MPS).

i t
r
5.16.2 Redesigning of Jobs to Motivate Employeess
v e
n i
The nature of the job itself impacts the level of motivation. The same is
suggested in the JCM model and Herzberg’s motivational theory. Through

, U
the following ways, jobs can be redesigned to motivate the employees-
Job Rotation:

O L
S
The periodic shifting of employees from one Job to another is known

L /
as Job rotation. Job rotation could be helpful if the Job lacks skill

O
variety and the employee suffers from over- routinization. In addition,

C
job rotation helps reduce boredom and employees understand how their
/
E
work contributes to the organisation. Example: Ticket agents may be

D C
involved in baggage handling. The Singapore Airlines is well known for
its extensive job rotation.

©D
Job Enrichment:
Job enrichment refers to vertical movement. The skill variety dimension
is increased by adding more tasks to the current Job. It makes existing
jobs comparatively more challenging. Job enrichment adds more meaning
to a job and gives more freedom to the employees. Recent studies suggest
that job enrichment works best when equivalent rewards accompany it.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 5.17 Alternative Work Arrangements

Organisations can motivate employees through various work arrangements
like Flexitime, job sharing and telecommunication. These arrangements are
beneficial in the current scenario because of diversity in the workforce,
like a single parent and dual-earner couple.
Job Sharing:

i
Job sharing refers to a system in which two or more employees split a

l h
40-hour-a-week job. For example, Ford engineers Julie Levine and Julie

D e
Rocco engaged in a job-sharing program. One worked in a morning slot,
while the other worked in an evening slot. It helped them in managing

of
their work-life balance while working on the Job of redesigning the
Explorer Crossover.

i ty
Job sharing combines the talent of two or more employees and gives

r s
flexibility to employees, which could motivate them to perform better.

e
Japanese organisation follows Job sharing for different reasons, like

v
i
avoiding layoffs due to overstaffing.

n
U
CASE STUDY

L ,
Sunaina works at “Insta International”. She is a coordinator responsible
for handling applications received from agency partners. She is also

S O
responsible for reviewing and ensuring all fields are filled properly.

L /
She is also responsible for following up with agency partners and

O
building a relationship with agency partners. As per the job description,

C
it is a full-time job requiring a minimum of 8 hours of commitment.
/
E
Presently, her office timing is from 10 a.m. to 6 p.m.

D C Sunaina is a good performer who meets her deadlines. Last year her
performance rating was above average. She also received “applause”

©D
from her immediate manager. Keeping her professional life aside, in
her personal life, Sunaina is a single mother. She wakes up at 5 a.m.
and prefers to sleep before 9 a.m. Recently her daughter has started
going to school, due to which from next month she needs to pick
her daughter up from school at 3 p.m.
Now Sunaina has no choice other than to leave her present job.
Sunaina goes to meet her manager, Mr Amit, in person with a
resignation letter-

160 PAGE
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 Motivation at Work

Amit: Hi Sunaina, How are you? Notes

Sunaina: I am good. Due to some personal engagements, I am afraid

I won’t be able to continue with this job.
Amit: Why? What happened?
Sunaina explained her situation and left the resignation letter on his
desk. After two days, Amit calls Sunaina in his office.

i
Amit: I was going through your resignation letter. I can recall that
we lost hardworking employees in the past for similar reasons. After
l h
talking with the HR department, we have come across an alternative.
The office opens at 6 a.m. and closes at 8 p.m., and you are supposed
D e
of
to devote 8 hours to the office. We could give you an option to pick
up suitable hours, provided the hours should fall within the opening
and closing time of the office.
i ty
Questions:
r s
e
1: Identify the alternative work arrangement that Mr Amit provides
v
to Ms Sunaina.
n i
arrangements.
, U
2: State the benefits and limitations of such alternative work

Flexi time:
O L
/ S
Flexi time refers to flexible work hours. Under this, organisations give

O L
an option to employees to choose working hours. In most cases, core
hours remain the same. However, the flexibility of two to four hours

/ C
is given beyond the fixed hours. Flexi hours provides various benefits

C E
to organisations; for example, it reduces absenteeism, reduces hostility
towards manager, eliminates tardiness, increases autonomy, etc. However,
D
©D
other than the advantages, Flexi hours have certain limitations, like it is
not suitable for all types of jobs. For example, if Sunaina is involved in
direct customer dealing and customers are usually unavailable before 10
a.m., it won’t be possible to give any alternative.
Telecommuting:
For at least two days a week, employees could work from home. Post
covid, many organisations across the globe allow telecommuting. It
not only gives flexibility to employees but is a cost-saving way for an
organisation.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 5.18 Management by Objectives (MBO)

In his book “The Practice of Management”, Peter Drucker formulated
Management by Objectives (MBO) in 1954. Management by objectives
(MBO) is a systematic and organised approach that allows management
to focus on achievable goals and attain the best results from available
resources. It aims to increase organisational performance by aligning goals
and subordinate objectives. Ideally, employees get strong input to identify

h i
their objectives, timelines for completion, etc. In addition, MBO includes

e l
ongoing tracking and feedback in reaching objectives. The principle behind

D
MBO is to ensure that everybody within the organisation has a clear

of
understanding of the aims, or objectives, of that organisation, as well
as awareness of their roles and responsibilities in achieving those aims.

ty
Principles of Management by objective:

s i
Cascading of organisational goals and objectives
r
u

v e
Specific objectives for each member

i
Goal Setting And Its Effects On Performance
n
U
Motivation is goal-directed. A goal is the object or aim of an action, for

L ,
example, to attain a specific standard of proficiency, usually within a
specified time limit. An employee’s goals often are driving forces, and
O
accomplishing those goals affects performance. Goals affect performance
S
/
through four mechanisms.
L
O
First, goals serve a directive function; they direct attention and effort

C
toward goal-relevant activities and away from goal-irrelevant activities.
/
E
Second, goals have an energising function. High goals lead to greater

D C effort than low goals. Third, goals affect persistence. When participants
are allowed to control the time they spend on a task, challenging goals

©D
prolong effort. Fourth, goals affect action indirectly by leading to the
arousal, discovery, and/or use of task-relevant knowledge and strategies.

5.19 Employee Involvement Program

Employee involvement programs use inputs from employees in the decision-
making process. Employee involvement creates an environment in which
people impact decisions and actions that affect their jobs. Employee
involvement is not the goal or tool practised in many organisations. Instead,

162 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

employee involvement is a management and leadership philosophy about Notes

how people are most enabled to contribute. It is a participative process
that uses the total capacity of employees and is designed to encourage
commitment to the organisation’s success.
Following are a few Employee involvement programs-
Participative management refers to a process where subordinates
share decision-making power with the superior. The degree of power is

i
significant, but the subordinate should have the required knowledge and
competencies to participate. It helps in motivating employees.
l h
Quality Circles: A group of employees meet regularly to discuss their
D e
of
quality problems, investigate causes, recommend solutions, and take
corrective actions.

ty
Employee Stock Ownership Plans: Companies establish benefit plans
in which employees acquire stock as part of their benefits.
s i
e r
Linking Employee Involvement Programs and Motivation Theories

i v
Many motivational theories can be linked with employee involvement

U n
programs. For example, theory Y of motivation shows consistency with
participative management, while in the case of hygiene theory, employee

L ,
involvement programs could provide employees with intrinsic motivation

O
by increasing opportunities for growth, responsibility, and involvement in

/ S
the work itself. Employee involvement is attuned with ERG theory and

O L
efforts to stimulate the achievement need.
Answer the following questions based on Opening Case Study—

/ C
E
1. Name the various motivation theories that have been highlighted

C
in the above case.

D
2. Identify the motivation theory that explains Amrita’s behaviour

©D
towards the end.
3. Using expectancy theory, explain the difference in motivation
between Amrita and Shweta.

IN-TEXT QUESTIONS
26. Which of the following is not an assumption of Maslow’s
theory?
(a) Needs are satisfied in a hierarchy

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (b) Lower order needs are satisfied prior to higher-order needs
(c) New needs emerge even when existing needs are not
satisfied
(d) Needs are classified as lower-order and higher-order
27. ERG theory of motivation is supported by:
(a) Clayton Alderfer
(b) Abraham Maslow

h i
(c) Frederick Herzberg
e l
(d) Douglas McGregor
D
of
28. _______focus on the needs a person is trying to satisfy and
environmental variables that satisfy those needs:
(a) Process theories
i ty
(b) Situational theories
r s
(c) Content theories
v e
n i
(d) Behavioural theories

U
29. B. F. Skinner is associated with:
,
L
(a) Reinforcement theory

O
S
(b) Need theory

L /
(c) Behavioural theory

CO
(d) Goal setting theory

E/
30. Adding more responsibility, autonomy and skills to the job Is:

C
(a) Job enlargement

D D (b) Job simplification

©
(c) Job enrichment
(d) Job rotation

164 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Motivation at Work

Notes
5.20 Summary
Motivation is the process in which basic need leads to creating drives
aimed at a goal. Highly driven people put in much effort at their jobs,
whereas those who lack motivation do not.
u The cognitive model of motivation consists of theories that focus on
the human mind’s internal state. Theories under the cognitive model

i
could be further sub-divided into Content and Process theories.
u Content (or need) theories of motivation focus on factors internal to
l h
the individual that energise and direct behaviour. In contrast, process
theories are concerned with determining how individual behaviour
D e
of
is directed and maintained in the specifically self-directed human

ty
cognitive processes.
u

s i
Content theory includes Maslow’s Need Hierarchy Theory; Herzberg’s

r
Motivational Hygiene Theory; Alderfer’s ERG Theory; and McClelland’s

e
v
Needs theory; while Vroom’s Expectancy Theory, Adam’s Equity

i
theory; and Goal Setting Theory fall under Process Theories.
n
u

, U
B.F. Skinner formulated reinforcement theory. This theory proposes
that behaviour is a function of its consequences. In other words,
L
unlike cognitive theories of motivation, other than the inner state,
O
S
motivation can be enhanced through external factors.
u
L /
Cognitive evaluation theory suggests that there are two types of

O
motivation; intrinsic and extrinsic.

C
u

E /
It is essential to apply motivational concepts to organisations. Some
of the applications of motivation and their linking with motivational
C
theories includes redesigning of job, providing alternative work
D
©D
arrangements to employees; management by objective, initiating
employee involvement programs and employee participation programs.

5.21 Answers to In-Text Questions

1. (a) needs and drives

2. Cognitive and non-cognitive models
3. internal state of human mind

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 4. content and process theories

5. (d) Adam’s Equity theory
6. (a) Alderfer’s ERG Theory
7. (a) Lower order needs
8. (d) Both (a) and (b)
9. (a) Fredrick Herzberg
10. (a) No dissatisfaction
h i
11. (a) Herzberg’s Two factor Theory
e l
12. (a) David McClelland
D
of
13. (b) Power

ty
14. (a) affiliation
15. (a) Achievement needs
s i
16. (c) Alderfer’s ERG Theory
e r
17. (d) Douglas McGregor
i v
18. (a) Theory X
U n
19. (a) Process theories

L ,
O
20. (a) Valance

/ S
21. (a) J.S. Adams Equity theory

L
22. (d) Expectancy theory
O
C
23. (c) B.F. Skinner

E /
24. (d) 5

D C 25. (b) Maslow – hierarchy of needs theory

©D
26. (c) New needs merge even when existing needs are not satisfied
27. (a) Clayton Alderfer
28. (c) Content Theories
29. (a) Reinforcement Theory
30. (c) Job enrichment

166 PAGE
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School of Open Learning, University of Delhi
 Motivation at Work

Notes
5.22 Self-Assessment Questions
1. Define motivation and explain the process of motivation.
2. Explain Cognitive evaluation theory. State the effects of intrinsic
and extrinsic rewards on the behaviour of the employees.
3. Explain Maslow’s need theory and its implications for management.
4. Do you believe that motivational theories are affected by the Culture?
Justify your answer with suitable examples.
h i
5. “Millionaires keep working even in the later years of their lives”
e l
What motivates them to work.
D
of
6. Match the following:

ty
1. Need hierarch theory (a) William Ouchi
2. ERG Motivation Theory (b) Locke and Latham

s i
r
3. Acquired-Needs Theory (c) Abraham Maslow
4. Theory Z (d)
e
David C. McClelland

v
5.
6.
Goal Setting Theory
Expectancy Theory
(e)
(f)
n i
Victor H. Vroom
Clayton Alderfer
Answers:

, U
1. (c) 2. (f) 3. (d)
O L 4. (a) 5. (b) 6. (e)

/ S
5.23 References
O L
u

/ C
Luthans, F. (2011). Organizational Behaviour: An Evidence – Based

C E
Approach, McGraw Hill Education.
Robbins, S. P., Judge, T. A., & Vohra, N. (2019). Organisational
D
u

©D
behaviour by Pearson 18e. Pearson Education India.
u Chhabra, T.N., (2017). Management Process & Organizational
Behaviour, Sun India Publication. Delhi.

5.24 Suggested Reading

u Kaul, V. (2011). Business Organization and Management: Text and
Cases. Pearson Education India.

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School of Open Learning, University of Delhi
L E S S O N

6
Leadership
Dr. Reema Aggarwal
Assistant Professor
Department of Distance & Continuing Education,
Campus of Open Learning
University of Delhi
Email-Id: [email protected]
h i
e l
Ms. Manisha Yadav
D
of
Assistant Professor
Department of Distance &

ty
Continuing Education

i
Campus of Open Learning

r s University of Delhi

e
Email-Id: [email protected]

v
STRUCTURE
n i
6.1 Learning Objectives
, U
6.2 Introduction
O L
6.3 What is Leadership?
/ S
6.4
L
University of Iowa Studies
O
C
6.5 Likert’s Management Systems
6.6
E /
Theories of Leadership
6.7
C
Great Man Theory
D
©D
6.8 Trait Theory
6.9 Behavioural Approach
6.10 Contingency Theories
6.11 Contemporary Theories
6.12 Summary
6.13 Answers to In-Text Questions
6.14 Self-Assessment Questions
6.15 Suggested Readings

168 PAGE
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School of Open Learning, University of Delhi
 Leadership

6.1 Learning Objectives Notes

At the end of this lesson, the student should be able to:

u Understand the meaning and traits of a leader.
u Distinguish between a leader and a manager.
u Understand different leadership styles and their importance.
u Understand the evolution of leadership theories.
u Relate to the contemporary theories of leadership.
h i
e l
6.2 Introduction
D
“If your actions inspire others to dream more, learn more, do more and
of
ty
become more, you are a leader!” - John Quincy Adams.

s i
Leadership is one of the most complex and multidimensional phenomena.

e r
It has been studied extensively over the years and has taken on greater

i v
importance than ever before in today’s fast-paced and increasingly

U n
globalised world. Nonetheless, leadership continues to generate captivating
and confusing debate due to complexity of the subject.

L ,
The present lesson traces the historical evolution of leadership theories

O
and reviews the progress over the years. It explores four main eras in

/ S
leadership theory: trait, behavioural, contingency, and contemporary
leadership theories.

O L
/
6.3 What is Leadership
C
C E
Simply speaking, “leadership” is defined as “the ability to lead.” Leadership

D
in business is the capacity of company’s management to set and achieve

©D
challenging goals, take fast and decisive action when needed, outperform
the competition, and inspire others to perform at the highest level they can.
Some of the definitions of leadership given by eminent researchers are:
Stogdill (1974) says that:
“Leadership is the initiation and maintenance of structure in expectation
and interaction.”
James MacGregor Burns (1978) concedes that:

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes “Leadership is leaders inducing followers to act for certain goals that
represent the values and the motivations - ‘the wants and needs, the
aspirations and expectations - of both leaders and followers. And the
genius of leadership lies in the manner in which leaders see and act
on their own and their followers’ values and motivations.”
According to Katz and Kahn (1978):
“Leadership is the influential increment over and above mechanical

i
compliance with the routine directives of the organization.”
According to John Gardner (1990):
l h
D e
“Leadership is the process of persuasion and example by which an

of
individual (or leadership team) induces a group to take action that is
in accord with the leader’s purpose or for the shared purposes of all.”

ty
Buchannan and Huczynski (1997) explain leadership as:

s i
“A social process in which one individual influences the behaviour of

e r
others without the use of threat or violence.”

i v
n
6.3.1 Characteristics of a Leader
U
L ,
There is no clear cut formula for becoming a successful leader. Nonetheless,

O
a few must-have traits are enumerated as follows:

/ S
1. Integrity: A leader must embody impeccable standards of integrity

L
and honesty. Her/His decisions should be objective and unbiased.

O
C
2. Initiative: A good leader has an enterprise trait. S/He is resourceful

E / and thinks on her/his feet and grabs the lucrative opportunities given

C
a chance.

D 3. Communication skills: A leader should be eloquent and able to

©D
articulate his/her vision and goals with brevity.
4. Motivation skills: A leader must be able to influence followers to
work towards shared goals and concurrently achieve their individual
goals.
5. Adaptive: In this changing world, a leader must be receptive to
new ideas and ways of doing things.

170 PAGE
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School of Open Learning, University of Delhi
 Leadership

6.3.2 Leader v. Manager Notes

A leader leads by example, whereas a manager dictates terms. A leader

is someone whom people follow or someone who guides others. On the
other hand, manager is someone responsible for directing and controlling
the work and staff in an organisation. The following table states a few
subtle differences between the two:
Leader Manager
Innovator Administrator
h i
People Focused Work focused
e l
D
Have followers Have subordinates

of
Do the right thing Do things rightly
Creating value Counting value

ty
Change seeker Prefer stability
Influence and inspire Power and control
s i
e r
6.4 University of Iowa Studies
i v
U n
The University of Iowa Studies was the first to examine different leadership

L ,
styles using scientific methodology. Kurt Lewin, in collaboration with
Lippit and White, wanted to dissect different leadership styles and their
O
effectiveness which resulted in concluding that there are three leadership
S
/
styles - authoritarian, democratic, and laissez-faire. These are widely
L
O
studied leadership styles around the globe.

/ C
E
6.4.1 What is the University of Iowa Studies?

D C
In 1939, the great depression was about to dissipate, and industries were

©D
back on their feet. Yet, no one tried to fathom out which leadership style
tics the subordinates the most. Psychologist Kurt Lewin was the first to
do so. The Iowa Studies of leadership set out to identify different styles
of leadership. This early study was very influential and established three
major leadership styles.
In the first part of the study, they trained adults to act as authoritarian,
democratic, or laissez- faire leaders. Later, they assigned schoolchildren of
the same IQ to one of the three groups. They gave each group the same
task. The performance was evaluated on the quality of work accomplished.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes The three group leaders assumed different styles as they shifted every
six weeks from group to group. The objective was to gauge the bearing
of different leadership styles on the level of satisfaction/frustration of
an individual.
The Three Styles of Leadership
1. Authoritarian Leadership
Under this style, a leader makes all the decisions. He passes a dictum
telling all the subordinates what to do, how to do it and when to do.
h i
l
No leeway for creativity or innovation gets bestowed upon an employee.
e
D
Under the authoritarian leadership style, a leader is believed to be a

of
know-it-all and will do what is best for the organization. Employees are
presumed to be ignorant, work-shy, lack ambition, dislike responsibility,

ty
and prefer to be led. They are not trusted to do what is beneficial for

i
the organization. Unlimited authority is thus rightly vested in the leader.
s
e r
Against its conspicuous flaws, authoritarian leadership is befitting to

i v
situations where there is little time for group decision-making or where

n
the leader is the most knowledgeable member of the group.

U
L ,
S O
L /
C O
E /
D C Figure 6.1: Authoritarian Leadership

©D
2. Democratic Style
This style is characterized by a structured but cooperative approach to
decision-making. It focuses on group relationships and sensitivity to people
in the organization. This type of leadership style fosters professional
competence. Subordinates are encouraged to express their ideas and
make suggestions. However, shared decisions are not likely to occur in
all aspects of organizational operations. Democratic leaders sell a vision.
They tend to be warm, confident, and friendly. The democratic leadership
style encourages employee participation and professional growth.

172 PAGE
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School of Open Learning, University of Delhi
 Leadership

Notes

h i
e l
D
of
Figure 6.2: Democratic Style
It is well suited in environments where people have high level of

ty
expertise, like software engineers, lawyers, doctors, mature teachers, etc.
i
s
The democratic leadership style promotes greater job satisfaction and
r
e
improved morale.
3. Laissez-faire
i v
U n
Laissez-faire is a hands-off approach. A leader trusts his employees and

,
gives them power to use their skills and accomplish the organization’s

O L
goals. But this is not a one-size fits its all approach. Only individuals
with high internal motivation and requisite skill sets can work under this

/ S
minimalistic leadership style. On the other hand, if employees are not

O L
skilled or lack motivation, in that case, this style will drive the productivity
of the organization into the ground.

/ C
C E
D
©D

Figure 6.3: Laissez-faire

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 6.4.2 Observations of the Study

Nineteen out of twenty boys liked the democratic leadership style. The
only boy who liked the authoritarian style happened to be the son of an
army officer. Seven out of ten boys preferred the laissez-faire leader to
the autocratic one as they preferred confusion and disorder to strictness
and rigidity present in the autocratic style. The boys under the latter style
exhibited more aggressive, hostile, and indifferent behaviour than their
counterparts under other leadership styles. They either showed hostility
h i
or cracked jokes about hostility towards others. Others belonging to the
e
democratic style showed less aggressive and more indifferent behaviour l
D
of
when brought under the autocratic style of a leader. Even under the
laissez-faire style of the leader, boys committed more aggressive acts

ty
than the ones under the democratic style.

s i
The studies found the democratic style to be less productive than the

r
autocratic style. On the flip side, quality was a rung higher with a
e
v
democratic leader atop than the group with an autocratic leader. Besides,

n i
decision-making was less creative under authoritarian leadership than

, U
under democratic leadership. The researchers concluded that democratic
leadership was the most effective form.

6.4.3 Conclusion
O L
/ S
O L
Undoubtedly a study on ten-year-old boys cannot be juxtaposed with the
leadership behaviour of adults with much more intricate jobs. Nonetheless,

/ C
the study in its own right was a trailblazer for the understanding of

C Eleadership styles from the point of scientific methodology. It depicts how

the same group can deliver different results based on the leadership style
D
©D
deployed by the superiors.
Leadership Styles - At a Glance
Autocratic Style Democratic Style Laissez-faire
Style
1. Decision-making Decisions are made Followers Decisions are
by leaders (centralised participate in made by the
decision-making) the decision- subordinates
making process (decentralised
(decentralised decision-making)
decision-making)

174 PAGE
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 Leadership

Autocratic Style Democratic Style Laissez-faire Notes

Style
2. Authority Leaders retain It is partly It is completely
authority for delegated to delegated to
decision-making subordinates subordinates
3. Motivation Negative Positive motivation Self-motivated to
motivation (Threats (Rewards and work
and Punishment) Incentives)

i
4. Behaviour Task-oriented Relationship- Relationship-

h
orientation behaviour oriented behaviour oriented behaviour
5. Need Satisfaction Lower-order needs Lower-order and Higher-order
e l
D
partly higher-order needs

of
needs
6. Communication Vertical, one way, Vertical, two way, Vertical and
top to bottom top to bottom and Horizontal

i ty
bottom to top

r s
6.5 Likert’s Management Systems
v e
n i
In the 1960s, social psychologist Rensis Likert and his colleagues at the

, U
University of Michigan in the United States administered questionnaires
to managers from 200 organizations. He wanted to gauge management
L
performance by determining which leadership style could extract maximum
O
S
productivity from the subordinates.

L /
C O
6.5.1 What is Likert’s Management Systems

E /
Likert’s management systems are management styles developed by Rensis

D C
Likert in the 1960s. He studied the patterns and styles of managers for
three decades and established a four-fold model of management systems.

©D
His four systems are designed to highlight various organisational dynamics
and characteristics built around interactions between individuals. Notably,
the systems explore several soft management skills, such as trust-building
and their effects on the broader dynamic of the organisation itself.
The four management systems by Likert:
1. System 1 - Exploitative Authoritative: Under this system, decision-
making and responsibility lie in the hands of the people at the
upper echelons of the hierarchy. The top management makes the

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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes policies and rules. The employees at the lower level are bound to
follow the instructions. The superior has no trust and confidence
in subordinates. Dictums get imposed on employees. They cannot
freely converse about their jobs with the managers. The managers
play on fear - punishment and threats get used as motivation tools.
Teamwork and communication are minimal.
2. System 2 - Benevolent Authoritative: The responsibility lies at the
managerial levels but not at the lower levels of the organizational
hierarchy. The superior has condescending confidence and trust in
h i
e l
subordinates (master-servant relationship). Here again, the subordinates

D
do not feel free to discuss things about the job with their superiors.

of
Teamwork or communication is very little, and motivation is based
on a system of rewards.

i ty
3. System 3 - Consultative: Under this system, managers have greater

s
trust in subordinates and demonstrate it by implementing ideas or
r
e
beliefs that they share with their team members. There is an open

v
n i
level of communication throughout the organization, and team
members are often consulted during the decision-making process,

U
particularly when any changes will affect them substantially. However,
,
L
the ultimate power of decisions remains with those at the highest

O
levels within the organization. Employee motivation gets roused by

/ S
incentives, including rewards and the responsibility for specific tasks.

O L
In this style, employees are given greater freedom and involvement
in meaningful tasks is used to boost intrinsic motivation.

/ C
4. System 4 - Participative: Responsibility for achieving the organizational

C E goals is widespread throughout the organizational hierarchy. The

superior has a high level of confidence in his subordinates. The
D
©D
level of communication is high, both horizontally and vertically,
and teamwork is regular.

6.5.2 Key Concepts

Under Likert’s Management Systems, several dynamics determine which
management system is at play. These are:
u Motivation
u Communication

176 PAGE
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Leadership

u Influence Notes
u Decision-making
1. Motivation: Motivation is a driving force that stimulates the employees
to accomplish the organization’s objectives. Now, it can be used both
positively (through rewards and incentives) and negatively (through
punishment and threats). Exploitative Authoritative and Benevolent
Authoritative primarily focus on punishment, whilst Consultative

i
and Participative are angled more towards a system of reward,
though none is committed to any one approach. Rewards can come
l h
in the form of monetary bonuses, extra responsibility, opportunities
for development, or improvement of employee relationships with
D e
of
superiors.

ty
2. Communication: In Exploitative Authoritative Systems, communication

i
is virtually one-way, with decisions being dictated directly from higher

s
r
management to subordinates. On the other hand, in Participative

e
Systems, communications is horizontal, with employees participating
v
in the day-to-day decision-making process.
n i
U
3. Influence: The level of influence employees hold is a conspicuous

L ,
indicator of the management system at play. In Benevolent and
Exploitative Authoritative Systems, subordinates are generally not

O
consulted about decisions that relate to their role. On the other
S
L /
hand, in Participative Systems, employees are encouraged to add
their pennyworth to the discussions.

C O
4. Decision-making: When employees are asked their opinions and

E /
ideas regarding the running of the business, they may indirectly

D C
influence the decision-making of their superiors, with their thoughts,
ideas and values being included in any strategic planning. However,

©D
in either of the Authoritative Systems, the final decision is made
by individuals at the upper levels of the organizational hierarchy.
Alternatively, in Consultative Systems, the employees are given a
role in the decision-making process through consultation and in a
Participative System, subordinates may have as much influence in
decision-making and goal setting as their manager.

PAGE 177
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Rensis Likert’s Four Systems of Management

Features System 1 System 2 System 3 System 4
1. Decision- Top Top management Top Joint decision-
making and management -very few management making by top,
Goal Setting decisions at -operating middle and
lower levels decisions at lower level
lower levels managers
2. Leader- Minimum Some interaction Moderate Extensive
follower but with
Interaction apprehension

h i
l
3. Communication Top to bottom Top to bottom Top to Vertical and
with slight
under-standing
D
bottom toe
bottom and Horizontal

of
of sub-ordinates’ top
view point

ty
4. Superiors’ Minimum or no Slightly more Substantial Complete

i
confidence confidence than system 1 confidence confidence
and trust in

r s
e
Subordinates

i v
5. Subordinates’ Minimum or no Slightly more Substantial Complete

n
loyalty towards loyalty than system 1 loyalty loyalty

U
Superiors

,
6. Production Minimum Better than Good Excellent

L
system 1

O
7. Control Rests with top Rests with top Top manage­ Self-control by

S
management manage­ment but ment shares subordinates

L / some control is
passed to lower
with middle
and lower

C O levels levels of

/
management

E
8. Motivational Negative Negative More Parti­cipation

C
force motivation motivation with economic of employees

D
-fear of some economic rewards with in the decision-

©D
punishment, rewards very little making
threats and negative processes
penalties motivation
9. Need Physiological Lower-order Lower-order Higher-order
Satisfaction and safety needs and partly needs
needs higher order
needs
10. Informal Informal goals Do not always Support Informal goals
Group Goals are contrary to resist formal formal goals merge with
formal goals goals formal goals.

178 PAGE
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 Leadership

6.5.3 Conclusion Notes

Likert’s studies confirmed that the departments or units employing

management practices within Systems 1 and 2 were the least productive,
and the departments or units employing management practices within
Systems 3 and 4 were the most productive.
With the help of the profile developed by Likert, it became possible to
quantify the results of the work done in the field of group dynamics.

h i
l
The Likert theory also facilitated the measurement of the “soft” areas of
management, such as trust and communication.
According to Rensis Likert, the nearer the behavioural characteristics of
D e
of
an organization’s approach System 4 (Participative), the more likely this
will lead to long-term improvement in staff turnover and high productivity,
low scrap, low costs, and high earnings.
i ty
r s
6.6 Theories of Leadership
v e
n i
Leadership theories seek to explain how and why certain people become
U
leaders. Initially, the focus was on ascertaining the characteristics of
,
L
leaders, but some attempted to identify the behaviours that people can

O
adopt to improve their leadership abilities in different situations.

/ S
Early debates on leadership often suggested that such skills were innate

O L
abilities. In other words, these theories proposed that certain people were
“born leaders.” More recent theories propose that possessing certain traits

/ C
make people mature leaders, but that experience and situational variables
E
also play a critical role.
C
D
What exactly makes a great leader? Do certain personality traits make

©D
people better suited to leadership roles, or do characteristics of the
situation make it more likely that certain people will take charge? When
we look at the leaders around us—be it our employer or the President—
we might find ourselves wondering exactly why these individuals excel
in such positions.
People have long been interested in leadership throughout human history,
but it has only been recently that several formal leadership theories have
emerged. Interest in leadership increased during the early part of the
twentieth century.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Early leadership theories focused on what qualities distinguished between

leaders and followers, while subsequent theories looked at other variables
such as situational factors and skill levels. While different leadership
theories have emerged, most can be categorized into one of the five broad
types: Great man theory, trait theory, behavioural theories, contingency
theories, and contemporary theories.

6.7 Great Man Theory

h i
l
Are some people born to lead? A cursory glance at the history provides
e
D
numerous anecdotal evidence. Alexander the Great, Julius Caesar, Napoleon,

of
Mahatma Gandhi, and Abraham Lincoln were the nonpareil leaders of
their times. They had a strong moral fiber, great resolute to achieve their

ty
objective and a clear vision. Even today, the belief that truly great leaders
are born is common.
s i
e r
v
6.7.1 What is the Great Man Theory

n i
U
In the 19th century, a historian named Thomas Carlyle said, “The history

,
of the world is the biography of great men”. According to him, a leader

masses.
O L
is one gifted with unique qualities that captures the imagination of the

/ S
L
The Great Man Theory of leadership espouses that great leaders are

O
born, not made. It states that some people are born with traits that

C
are the mainstay of a successful leader. Under the Great Man Theory,

E /
prominent leaders throughout history were born to lead and deserved to

C
do so on the back of their natural abilities and talents. The theory gives

D the semblance of heroism.

©D 6.7.2 Criticism
One of the central problems with the Great Man theory of leadership is
that not all people who possess the so-called natural leadership qualities
become great leaders. If leadership is simply an inborn quality, then
every individual endowed with the said traits must have eventually found
themselves in leadership roles.

180 PAGE
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 Leadership

The Great Man Theory gives the semblance of heroism. Accordingly, a Notes
leader is a hero who accomplishes goals against all odds for his followers.
Such assumptions are unrealistic.
Many of the traits cited as being vital to being an effective leader are
typical masculine traits. In contemporary research, there is a significant
shift in such a mentality.

i
6.7.3 Conclusion

l h
e
The Great Man Theory was a catalyst for arousing the interest of the
researchers in understanding what leadership is, who is a leader, what
D
of
are the distinguishing traits of a great leader, from this emerged the trait
theory of leadership.

i ty
6.8 Trait Theory
r s
v e
The Great Man Theory is the earliest theory of leadership. It suggested

n i
that great leaders were born and not made. They had some inborn qualities,

, U
and this made them great. However, there was no agreement on the traits
these leaders shared or how to identify such people. In trait theory, the
L
researchers attempted to identify these traits of a leader.
O
/ S
L
6.8.1 What is the Trait Theory

C O
The Trait Theory is an extension of the Great Man Theory. The objective of

E /
the Trait Theory was to discern the innate traits embodied by an individual

C
that transform them into successful leaders. Different researchers worked

D
on this theory, like Francis Galton. Galton stated that leadership quality

©D
is for those who have specific traits that are rigid by birth. Cowley also
said in 1931 that traits should be part of research in leadership study. In
1948, Ralph Melvin Stogdill also supported Trait theory and did value
addition to it. He added further that leadership is based not only on
inherent traits but also on the way a leader interacts with the situation.
The theory sought personality, social, physical, or intellectual traits that
differentiated leaders from non-leaders. Underlying this approach was the
assumption that some people are natural leaders endowed with certain traits

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes not possessed by others. It attributed managerial success to extraordinary

abilities such as tireless energy, intuition, uncanny foresight, and irresistible
persuasive powers. Some of the traits identified were as follows:
(i) Personality traits: Self-confident, adaptable, assertive, emotionally
stable etc.
(ii) Task-related characteristics: Driven to excel, accepting responsibility,
having initiative, results-oriented etc.

i
(iii) Physical traits: Young to middle-aged, energetic, tall, handsome etc.
h
e
(iv) Social characteristics: Charismatic, charming, tactful, popular,
l
D
cooperative, diplomatic etc.

6.8.2 Assumptions
of
i ty
The kernel of this theory is its three assumptions, which are as follows:

r s
e
u Individuals have innate leadership traits.
u
i v
A specific set of traits induces a particular behaviour pattern.
u

U n
This behaviour pattern is irrespective of the situation, i.e., doesn’t

,
change according to the situation.

6.8.3 Results
O L
/ S
O L
There were many studies conducted during the l930s and 1940s to discover
these elusive qualities focusing on the trait of leaders. But the research

/ C
effort failed to find any traits that would guarantee leadership success.

C E
It could not identify a universal set of traits to recognize a leader in all
situations.

D D
© 6.8.4 Criticism
The trait theory of leadership lacks in providing better and clear results.
It is not fit for all situations, as different traits were set forth by different
researchers, there is no uniform list. Consideration of other factors that
affect leadership is also missing. Also, the comparative analysis of traits
and their importance is undetermined. It couldn’t justify why some people
with these traits were not influential leaders and why some others with

182 PAGE
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School of Open Learning, University of Delhi
 Leadership

streaks of rigidness were successful. Tests to measure these traits are Notes
also not present.

IN-TEXT QUESTIONS
1. _______ holds a formal position in the organisation, whereas
_______ can influence the group even without a formal position
in the organisation.

i
2. Leaders who practice Laissez- faire style is very good at ____.
(a) Decision making
l h
(b) Delegating work
D e
of
(c) Communicating with employees
(d) None of the above

i ty
3. Under this leadership style, followers feel they are participating
in the decision making, but they are not_____.
r s
(a) Benevolent Autocratic
v e
(b) Dictator Leadership Style
n i
(c) Manipulative Leadership Style
, U
O L
(d) Laissez- Faire Leadership Style
4. _____leadership theory assumes that leaders are born not made.

/ S
L
(a) Trait Theory

O
(b) Authentic leadership

C
/
(c) Great man theory of leadership

E
C
(d) Transactional theory of leadership

D
©D
6.9 Behavioural Approach
The behavioural leadership theory focuses on how leaders behave. Sometimes
called the style theory, it suggests that leaders aren’t born successful
but can be created based on learnable behaviour. Behavioural theories
focus heavily on the actions of a leader—this theory suggests that the
best predictor of leadership success is viewing how a leader acts. Action
rather than qualities are the focal points of behavioural learning theory.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes The main difference between trait theory and behavioural theory is the
process of becoming a leader. In the trait theory of leadership, people can
become leaders smoothly because they were born with the requisite skills.
In the behavioural theory of leadership, however, anyone can become a
leader after learning leadership skills.

6.9.1 Ohio State Studies

The researchers at the Ohio State University ushered in the direction of
h i
l
studying leadership extensively. The objective was to examine the impact
e
D
of a leader’s behaviour on job performance and satisfaction of employees.

of
For this purpose, they administered the Leader Behaviour Description
Questionnaire (LBDQ) to get scores of employees. The LBDQ consisted of

ty
150 statements concerning leadership behaviour. Each employee responded

i
depending on the degree of leader’s engagement in various behaviours.
s
r
After studying the results of the ratings, the researchers subsumed the
e
v
leader’s behaviour under two categories. First, consideration, and second
i
n
initiating structure.

U
(i) Consideration: The extent to which the leader exhibits concern for
,
L
the welfare of the employees. A leader high in consideration respects

O
employees’ ideas, tries to solve their problems, is approachable,

/ S
treats them as equals and frequently appreciates their work. S/He

O L
focuses on forging mutual trust and a conducive environment for
his employees.

/ C
(ii) Initiating structure: The extent to which the leader defines individual

C E roles. A leader high in initiating structure will set clear goals and
emphasize meeting performance targets and deadlines. S/He will
D
©D
set much more by systematic coordination of work, will delineate
job descriptions of each employee along the pecking order.
Ohio State Leadership Grid
According to Ohio State Leadership Studies, a leader can elicit both
behaviours concurrently, which means consideration and initiating structure
are not mutually exclusive.

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 MBA

Ohio State Leadership Grid:

According to Ohio State Leadership Studies, a leader can elicit both behaviours concurrently,
Leadership
which means consideration and initiating structure are not mutually exclusive.
Hence, leadership
Hence, leadership behaviour
behaviourcan canbebe
plotted on on
plotted twotwo
separate axes axes
separate ratherrather
than on a single
Notes
continuum, as shown in the following diagram:
than on a single continuum, as shown in the following diagram:

h i
e l
D
of
i ty
r s
v e
n i
, U
Figure 7.4: Ohio State6.4:
Figure Leadership Quadrants
Ohio State
L
Leadership Quadrants

O
S
Each
Each quadrant
quadrant ininthe
theabove
above diagram
diagram is a mixture
is a mixture of varying
of varying degrees ofdegrees
initiatingofstructure and
initiating structure
consideration. A manager
L /
and consideration. A manager
adopts any one style. The four adopts
quadrantsany
are one style.
as follows:

O
The four quadrants are as follows:
1. Low structure and low consideration: the leader neither provides a rigid structure nor
1. Low structure
demonstrates
/ C
and low consideration:
much consideration The leader
for his employees. neithera provides
He projects a leadership
laissez-faire
style rigid
E
and isstructure norhighly
suitable for

C
demonstrates much consideration
skilled employees for hismotivation.
with high intrinsic employees.
He projects a laissez-faire leadership style and is suitable for highly

D
2. high structure
skilled and low
employees consideration:
with the leader
high intrinsic is pedantic about structuring the work
motivation.

©D
and roles of employees. He projects an autocratic leadership style and does not care much
2. High
about structure
his employees' and
needs andlow consideration: The leader is pedantic
wants.
about structuring the work and roles of employees. He projects an
autocratic leadership style and does not care much about employees’
200 | P a g e
needs and wants.
© Department of Distance & Continuing Education, Campus of Open Learning,
3. Low structure and School
highofconsideration: A leader sets much store
Open Learning, University of Delhi
by the needs and wants of his employees. His primary concern is
the welfare of employees. For instance, a leader might define the

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© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes problem and ask the group members to decide how they will work
together to accomplish the task.
4. High structure and high consideration: A leader is highly active
and considerate of his employees. He defines the structure but is
open to alteration to squeeze in employees’ ideas, needs and wants.
Conclusion
The Ohio State Leadership study found that a leader who is high in initiating

i
structure and consideration (a high-high leader) is predominantly effective.
h
e l
He achieves high employee performance and satisfaction. However, in a
significant number of cases, there were exceptions found. These exceptions
D
of
indicated a need to take situational factors into cognizance.

ty
6.9.2 University of Michigan

s i
r
A study commenced at the University of Michigan intending to identify

e
leadership styles that achieved maximum performance and job satisfaction
v
n i
among employees. It draws much semblance to Ohio State studies. The
study identifies two broad leadership styles: employee oriented and

,
production-oriented style. U
O L
(i) Production-oriented leader: This is quite similar to a leader under
the Ohio State study who is high on initiating structure focusing

/ S
on task-oriented activities. The leader considers employees as
L
stakeholders.
O
C
(ii) Employee-oriented leader: This is similar to a leader under the
/
E
Ohio State study who is high on the consideration emphasizing on

D C human relations. The leader considers employees as a means to

achieve production targets.

©D
Conclusion
According to the University of Michigan, employee-oriented leadership
coupled with general direction and not overbearing supervision would
yield maximum performance and job satisfaction.
Criticism
The overarching assertion that an employee-oriented style leads to better
productivity is contentious. It does not account for the employees and

186 PAGE
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 Leadership

the circumstances that may warrant the use of a production-oriented Notes

leadership as more effective.
For instance, some intricate jobs might require a more hands-on approach
from the leader.
Also, the same leadership style may not yield the same results for two
different organisations due to different dynamics.

6.9.3 Leadership Grid

h i
The leadership studies at the University of Michigan and the Ohio State
e l
University hinged on task-oriented and employee-oriented leadership styles.
D
of
In the 1960s, Robert Blake and Jane Mouton also built their work on these
dimensions. They proposed a grid known as the managerial grid (also

i ty
known as the leadership grid). The x-axis of the grid indicates concern

s
for production (keeping tight schedules) by the leader, and the y-axis
r
e
portrays concern for people (accommodating people’s needs and giving

i v
them priority). Each dimension ranges from low (1) to high (9) and thus

n
rendering 81 different positions in which the leadership style may fall.

U
L ,
S O
L /
C O
E /
D C
©D
Figure 6.5: Leadership Grid
The five resulting leadership styles are as follows:
(i) The impoverished style (1, 1): The managers have low concern
for; people and production. Managers use this style to avoid getting
into trouble. The main concern for the manager is not to be held

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes responsible for any mistakes, which results in less innovative

decisions.
The leader uses a “delegate and disappears” management style.
They are not committed to either task accomplishment or employee
satisfaction, which leads to chaos, disharmony within the organisation
and high employee turnover.
(ii) The country club style (1, 9): This style has a high concern for

i
people and a low concern for production. Managers using this style

l h
pay much attention to the security and comfort of the employees

D e
in the hope that this will increase their performance. The resulting
atmosphere is buoyant but not necessarily productive.

of
(iii) The task management style (9, 1): With a high concern for

ty
production and a low concern for people, this style finds employee

i
needs unimportant. Managers using this style manage their employees

s
r
through rules and punishments. This dictatorial style is based on

e
Theory X and perceives employees as a mere means to an end.
v
n i
(iv) The middle-of-the-road style (5, 5): The manager tries to balance

U
the company’s goals and workers’ needs. This is a halfway between

L ,
employees’ needs and the company’s needs, which are viewed as
disparate by the manager. He believes it to be the best way possible

O
as he assumes that employees’ needs and company’s goals can not
S
/
be reconciled and hence, tries to achieve acceptable performance.
L
O
(v) The team style (9, 9): In this style a manager pays high concern

/ C
to both people and production. The manager premises his leadership

E
style on Theory Y, where s/he fosters teamwork. This method relies

D C heavily on making employees feel like a quintessential part of the

company.

©D
The manager leads by positive example and endeavours to harness a team
environment in which all team members reach their highest potential,
both as a team and as individuals. He or She encourages the team to
accomplish team goals effectively and work as a team to strengthen the
bonds amongst members.
Conclusion
The Managerial Grid is used to help managers analyze their leadership
styles through a technique known as grid training. Under this training,

188 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Leadership

questionnaires get administered to the employees that help managers Notes

identify how they stand in their concern for production and people. The
training aims to help leaders reach the ideal state (9, 9).
Nevertheless, the model ignores the importance of internal and external
limits, matter, and scenarios.

IN-TEXT QUESTIONS

i
5. Hersey and Blanchard Model is part of theories.
(a) Trait theories (b) Behavioural theories
l h
(c) Contingency theories (d) Contemporary theories
D e
of
6. Leadership Grid is part of theories.
(a) Trait theories (b) Behavioural theories
(c) Contingency theories
i
(d) Contemporary theories
ty
7. Ohio state studies is part of theories.
r s
(a) Trait theories
v e
(b) Behavioural theories
(c) Contingency theories
n i
(d) Contemporary theories

, U
8. If a leader shows more concern for employees over the task, such

O L
a leader falls under quadrant which is popularly also known as
_________ as per the Leadership grid.
(a) Impoverished
/ S (b) Teamwork

O
(c) Task oriented L (d) Country club

/ C
9. If a leader shows more concern for task over the employees, such

as
C E
a leader falls under quadrant which is popularly also known
as per the Managerial grid.

D
©D
(a) Impoverished (b) Teamwork
(c) Task oriented (d) Country club
10. If a leader shows more concern for both task and employees,
such a leader falls under quadrant which is popularly also
known as as per the Managerial grid.
(a) Impoverished (b) Teamwork
(c) Task oriented (d) Country club

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 11. ________ quadrant is best position for a leader as per behavioural
theory of Managerial grid.
(a) Impoverished (b) Teamwork
(c) Task oriented (d) Mid Way

6.10 Contingency Theories

i
The contingency leadership theory, also called situational theory, focuses
h
l
on the context of a leader. A leader’s effectiveness is directly determined
e
D
by the situational context in addition to his behaviour. This theory takes

of
the specific leadership styles and suggests that good leaders can adjust
their leadership style situationally. It also advocates that it will be best

ty
to find the right leader for a specific situation. Types of contingency

i
theories include Fiedler’s Contingency Theory, Evans and House’s Path-
s
r
Goal Theory, and Hershey and Blanchard’s Situational Theory.

e
6.10.1 Fiedler Contingencyi v
Model

U n
,
Till late 1960s, the building blocks of leadership theories were; the innate

O L
skill set to be a leader, and there were predominantly two leadership styles
(task-oriented leadership and relationship-oriented leadership style). None

/ S
of the theories factored in the clout of external factors on the effectiveness

L
of a particular leadership style.
O
C
In 1967, an Austrian psychologist, Professor Fred Fiedler, concurred with

E /
the idea of natural leadership style dyed-in-the-wool, which is hard to

C
change. Nevertheless, as per him, situational factors have an equal sway

D D on the efficacy of a leadership style. Fiedler contended that there is no

infallible leadership style for every situation. For this reason, there must

© be a match between the leadership style and the situation at hand. So,
the two vital tenets of his theory were:
(i) Natural leadership style, and
(ii) Situation favourableness
Assumptions:
The model contended that an individual premises his leadership style on
his past experiences and psychology. It is impossible to change one’s

190 PAGE
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 Leadership

natural leadership style. There are only two ways to improve the outcome Notes
of an organisation:
(i) Change the situation, or
(ii) Change the leader
Steps for application of the Model:
Step 1: Identify the leadership style

i
To riddle out one’s leadership style, Fiedler curated the Least Preferred
Coworker (LPC) questionnaire. The questionnaire asks respondents to
l h
describe the one co-worker they least enjoyed working with by rating that
person on a scale of 1 to 8 for each of 16 sets of contrasting adjectives
D e
of
(such as pleasant–unpleasant, efficient–inefficient, open–guarded, supportive–
hostile). If the respondent even held this co-worker in high regard and

ty
scored him high, Fiedler categorized him/her as a relationship-oriented

s i
leader. By contrast, if the respondent gave a low score to this co-worker,

e r
it is deduced that his natural leadership style is task oriented. About 16

i v
per cent of respondents scored in the middle range and consequently
weeded out of the study.
Step 2: Defining the situation
U n
L ,
Every situation calling for leadership requires a specific leadership style

O
geared towards it. For this reason, one must assess the favourableness

S
L /
of the situation. This hinges on three variables:
(i) Leader-member relationship: This is a measure of trust, confidence,

C O
and respect members have for their leader. The higher the confidence,
/
the more favourable the situation is.
E
D C
(ii) Task structure: It is highly streamlined structure leading to a
favourable situation. The more precise the tasks are – the higher

©D
the task structure.
(iii) Power position: It gauges the authority of a leader over power
variables like hiring, firing, promotions, and salary increase. Stronger
the power position, the more favourable the situation.
Essentially,
Favourable situation = Good leader-member relationship + high task
structure + strong power position.
An unfavourable situation is on the other end of the continuum.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Step 3: Matching leaders and situations

Combining the three contingency dimensions yields eight possible situations
in which leaders can find themselves. The Fiedler model proposes
matching a respondent’s LPC score and these eight situations to achieve
maximum leadership effectiveness. Fiedler concluded that task-oriented
leaders perform better in very favourable and very unfavourable situations.
Relationship-oriented leaders, however, perform better in moderately
favourable situations.

h i
l
(Low) Group performance (High)

D e
of
i ty
r s
v e
i
Favourable Moderate Unfavourable

U n
Figure 6.6: Fiedler Contingency Model

Leader-member
L ,
Good Bad
Relations

S O
Structured Unstructured Structured Unstructured

/
Task structure
Strong Weak Strong Weak Strong Weak Strong Weak

Cells L
Position power

O 1 2 3 4 5 6 7 8

/ C
Conclusion:

C EFiedler’s theory is far too rigid. It states that you can not change your

D leadership style, so when a scenario arises where your leadership style

©D
and the situation at hand are at odds, you should bow out. Also, if your
score falls in the middle range of the LPC test, the theory does not
categorize you into any leadership style.

192 PAGE
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 Leadership

6.10.2 Hersey and Blanchard’s Situational Theory: Notes

Until this time, leadership theories focused on the leaders and their traits.
However, Paul Hersey and Ken Blanchard premised their leadership model
on the subordinate’s maturity. Under this model, leadership style is not
static and should be geared based on employees’ maturity levels. The
maturity level has two components:
Psychological maturity: Reflects their self-confidence, willingness,
i
u

h
and readiness to accept responsibility.
u Task maturity: Reflects their relevant skills and technical knowledge.
e l
High job maturity means the employee has the ability to execute
D
of
the task at hand with efficacy.
Four leadership styles:

i ty
s
Participating L3 Style Selling L2 Style
Low Task
High Relationship
High Task

e
High Relationship
r
Behaviour

i
Behaviour
v
U n
L ,
O
/S
Delegating L4 Style Telling L1 Style
Low Task

O L
Low Relationship
High Task
Low Relationship

C
Behaviour Behaviour

E /
D C
© D
Figure 6.7: Hersey and Blanchard’s Situational Theory
1. Delegating style (L4 Style): A low-task, low-relationship style wherein
the leader gives carte blanche to the employees to accomplish the
goal. This style is befitting for employees with high psychological
and task maturity.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 2. Participating style (L3 Style): A low-task, high-relationship style

wherein the leader kindles the employees to partake in decision-
making. This style is suitable for employees with high task maturity
but a flagging willingness to execute the task.
3. Selling style (L2 Style): A high-task, high-relationship style wherein
the leader helps employees to gain confidence. He tries to sell his
ideas and vision to the employees. This style is befitting for employees
with high task maturity but, with time, have lost enthusiasm.

h i
l
4. Telling style (L1 Style): A high-task, low-relationship style wherein

This style is geared towards low-maturity employees.

D e
the leader gives explicit directions and supervises work closely.

Conclusion:
of
ty
The upside of the model is that it provides leeway for the leaders to gear

i
their leadership style based on their employees’ maturity, understanding
s
r
and context of the organisation. It advocates that leadership is flexible
e
v
and not static, like Fiedler’s Contingency Model, which believes that an

n i
individual’s leadership style is fixed.

, U
The downside is it places too much responsibility on the leader’s ability
to decide and change his leadership style as per the situation. However,
L
these decisions may be flawed.
O
/ S
L
6.10.3 Path-Goal Theory

O
C
The path-goal theory was the brainchild of Robert House. It has the
/
E
expectancy theory of motivation at its core. The path-goal theory

D C expounds on the impact of leader’s behaviour on employee’s perception

of expectancies between his effort and performance. It is incumbent on

©D
the leader to define goals, clarify the path to achieve goals, and heave
any obstacles from that path.
The path-goal theory endorses servant leadership. Servant leadership theory
advocates that a leader is a facilitator. He should provide the information,
support, and all other resources required by employees to complete the
task. According to the path-goal theory, the choice of leadership style is
contingent on several employee and environmental factors. Compendious
details of each component are as follows:

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 Leadership

Leadership styles: Notes

There are four leadership styles:
1. Directive: In this, the leader envisions the present and future goals of
the organisation. Then, he breaks it down into smaller manageable
goals with checkpoints at each step. Employees have explicit
information about their work and how to do it. The leader uses the
carrot-and-stick approach. He makes judicious use of rewards and

i
punishments. This is the same as the task-oriented leadership style.
2. Supportive: The leader is cordial and empathetic. He demonstrates
l h
thoughtfulness and concern for his employees’ welfare. This is the
same as the people-oriented leadership style. D e
3. Participative: A leader doesn’t consider his employee as a cog in
of
ty
the machine but as a stakeholder. He consults his employees on

i
important decisions related to goal setting and the path to achieving
s
those goals.
e r
i v
4. Achievement-oriented: The leader sets challenging goals and

U n
encourages employees to reach their peak performance. The leader
believes that employees are responsible enough to accomplish

,
challenging goals. This is the same as the goal-setting theory.
L
O
Contingencies:

/ S
The relationship between a leader’s style and effectiveness is dependent
on the following variables:

O L
C
(i) Employee factors: These include factors such as employees’ needs,
/
locus of control, experience, perceived ability, satisfaction, willingness
E
C
to leave the organization, and anxiety. For instance, if there is an

D
employee with low motivation, then participative leadership style

©D
will be preferable.
(ii) Environment factors: These include factors such as task structure
and team dynamics that are outside the employees’ control. For
example, for employees performing simple and routine tasks, a
supportive style is much more effective than a directive one.
Conclusion:
The theory has been subjected to empirical testing in several studies and
has received considerable research support. This theory consistently reminds

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes leaders that their primary role as a leader is to assist their subordinates
in defining their goals and assist them in accomplishing those goals most
efficiently and effectively. This theory gives a guide mapMBA to the leaders
about how to increase subordinates’ satisfaction and performance levels.

h i
e l
D
of
i ty
r s
v e
n i
, U
O L
Figure 7.9: Path-Goal Theory
Figure 6.8: Path-Goal Theory

/ S
7.10.4 Continuum of Leadership Behaviour by Tannenbaum and Schmidt:

L
The "contingency" approach argues that leadership style should be based on a particular
situationContinuum
6.10.4 and not on the leader'sof Leadership Behaviour by Tannenbaum
O
personal preferences.

and
/ C Schmidt
Contingency theorists Robert Tannenbaum and Warren Schmidt identified seven leadership
styles. They run in a continuum, from rigid authority at one end to full freedom for your team

C E at the other. The below diagram displays all the styles:

The “contingency” approach argues that leadership style should be based

D on a particular situation and not on the leader’s personal presences.

©D
Contingency
212 | P a g e theorists Robert Tannenbaum and Warren Schmidt indentified

seven leadership styles.

© Department They
of Distance runEducation,
& Continuing in a Campus
continuum, from rigid authority
of Open Learning,
School of Open Learning, University of Delhi
at one end to full freedom for the team at the other. The below diagram
display all the styles:

196 PAGE
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 Leadership

Notes

h i
e l
D
of
i ty
r s
v e
n i
, U
L
Figure 6.9: Range of Leadership Behaviour
O
/ S
The seven leadership styles broadly correspond to a team’s level of

O L
development. As trust and competency grow, so does the amount of
freedom that the team members want and that leaders feel comfortable
providing.
/ C
C E
6.11 Contemporary Theories
D
©D
6.11.1 Transactional and Transformational Leadership Style
Burns suggested the initial idea of transactional and transformational
Leadership, and Bass formally introduced the theory. Transactional
leaders mainly focus on ongoing work. They work with employees to
fulfil organizational goals and simultaneously plan for the next actions.
Based on the results and performance, manager also rewards and punishes
employees. Under transactional leadership, employees are appreciated for

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes their contribution, but the manager usually neglects employees who lack
required capabilities and skills. Transactional leaders are more concerned
about completing goals as suggested in path-goal theory, Fiedlers’ model,
etc.
The transactional leadership style compliments the transformational
leadership style. The last decades of the 20th century recognized the need
for leaders who could develop their followers’ behaviour and transform
them into new leaders. Various researchers extensively explored the theory.
It is a leadership style where leaders like Richard Branson (Virgin),
h i
e l
Andrea Jung (Avon) etc., tend to inspire their followers. Transformational

D
Leaders change or transform followers’ perceptions and help them solve

of
old problems in new ways. They motivate employees to put extra effort
into achieving the set goals. Bass suggested four factors that form

ty
transformational Leadership: idealized influence, inspirational motivation,

s i
intellectual stimulation, and individual consideration. Transformational

e r
leaders help employees improve and grow to do their jobs independently.

i v
They ensure that employees change and improve for the betterment of
an organization.

U n
Transformational Leadership goes beyond transaction or task completion

L ,
and helps followers transform themselves to adopt new ways of doing

O
the task. They pursue employees to be more creative and innovative. The

/ S
transformational leader does have qualities of transactional Leadership. But

O L
the same is not true in the vice versa case. The transactional leader follows
the Laissez-Faire style, he hands over the responsibility to followers, and

/ C
mostly they tend to intervene when set standards are not met. In addition,

C Etransformational leaders also provide vision to the followers. They

communicate challenging goals and motivate employees to perform above

D expectations using a problem-solving approach. Unfortunately, sometimes

©D
employees and Leaders get enthusiastic and become over-engaged with
loyal employees and piling up too many tasks and responsibilities.

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 Leadership

Notes

h i
e l
D
of
i ty
r s
v e
n i
, U
L
Figure 6.10: Transactional and transformational leadership

O
(Source: Robbins, S. P., Judge, T. A., & Vohra, N. (2019). Organizational

S
L /
behaviour by Pearson 18e. Pearson Education India.)
Transformational leaders are more creative and ready to take more risks.

C O
Such leaders are able to boost the confidence among followers to pursue

/
ambitious goals. They make followers believe that goals are personally
E
C
essential for them. They have a charisma that motivates employees to

D
give extra effort. But vision dominates charisma, unlike charismatic

©D
Leadership. Leaders are found to be committed to the organization and
can win the followers’ trust.

CASE STUDY
Leadership styles played a critical role in the inability of Xerox to
capitalize on its invention of the first user-friendly personal computer.
The researchers in the Xerox Palo Alto Research Centre (PARC)
developed the first graphical user interface, mouse and menu driven

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes computer-technological advances that made computing accessible to

the novice user (Bennis & Biederman, 1997). The lab’s charismatic
leader, Bob Taylor, recruited only the very brightest scientists, gave
them the freedom to innovate and inspired them to work together to
solve tremendously complex problems. Researchers at PARC invented
new products, obtained multiple patents, and pioneered many of the
computer technologies we now take for granted. However, because

i
Xerox PARC was not well integrated into the rest of the company,
Xerox’s top management was skeptical of the inventions the lab
l h
D e
developed and didn’t see how they fit in with their current copying
equipment (Poe, 2000). Xerox lacked a transactional leadership style

of
in the top management team to provide the structure and systems
that could capture the knowledge generated in the PARC labs. Where

ty
Xerox failed, Apple succeeded. Steve Jobs visited the PARC facility

s i
in 1979 and immediately saw the future of computing in the mouse-

e r
driven graphical user interface (Bennis & Biederman, 1997). Jobs left

i v
the PARC labs without any hardware or software but with a vision

U n
for how computers should operate. Jobs and his Apple employees
were able to convert the innovative PARC ideas into the Macintosh

,
computer, which debuted in 1984, changing the face of computing.
L
O
Because of Jobs’ Leadership, Apple created the systems and structures

S
that were able to convert their knowledge into a valuable product. Jobs

L /
exhibited both transformational and transactional leadership styles.

O
He used a transformational leadership style to create a vision for the

/ C
Macintosh and challenge his employees to reach nearly impossible

E
goals. He used a transactional leadership style to create the systems

D C and structures in Apple that allowed the knowledge created at all

levels of the organization to be converted into a valuable product-the

©D
Macintosh personal computer.
(a) Using the instances from the case study, differentiate between
transformational, transactional, and charismatic Leadership.
(b) What led to the success of Apple under the Leadership of Steve
Jobs.

200 PAGE
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 Leadership

6.11.2 Charismatic Leadership Notes

The followers’ positive perception of their leader (like Martin Luther

King Jr., Steve Jobs, Indira Gandhi, and Narendra Modi etc.) makes such
leaders powerful and influential. However, followers sometimes don’t
even have rational reasons behind such beliefs. This term was initially
suggested by sociologist Max Weber. The word “Charisma” is derived
from a Greek word which means gifts.
Charismatic Leadership refers to a “Certain qualities of an individual
h i
personality, by which they are set apart from ordinary people and are
e l
D
treated as endowed with exceptional powers or qualities. Such qualities

of
are not accessible to the normal person and are regarded as the divine
origin or exemplary, and based on them, the individual is treated as a

ty
leader.”

s i
Later in 1977, Robert J. House studied it in organizational settings.

e r
According to Robert House, followers’ positive perception of certain

i v
observed behaviours in an individual makes them leaders. Charismatic

U n
leaders usually have a vision and are ready to take risks at a personal
level to achieve their vision. They are susceptible to the follower’s needs

,
and generally show behaviour that is perceived as a novel.
L
O
It has been observed that charismatic leaders influence followers with an

S
/
appealing vision followed by a long-term strategy that could result in a

O L
better future. The followers can visualize a challenging yet achievable
vision from a charismatic leader. The vision usually fits the ongoing

/ C
circumstances and gives uniqueness to the organization. They can increase

C E
confidence in followers that the vision could be attained through a
given strategy and high performance. Employees can identify with the
D
leader personally. Such leaders also communicate a certain set of values

©D
to achieve the goal. Overall, employees are able to connect with such
leaders at an emotional level. The combination of certain personality
traits and situational factors mainly leads to the rise of charismatic
leaders. Charismatic leaders possess high confidence and are generally
achievement-oriented, for example, Barack Obama. Similarly, followers
become more receptive to charismatic leaders when they face stress and
crises. For instance, In the 1930s, Franklin D. Roosevelt’s vision was to
get people out of the Great Depression.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 6.11.3 Authentic Leadership

The dawn of the 20th century and the beginning of the 21st century saw
some infamous large-scale scams (like the fall of top companies like
Enron and WorldCom) and periods of recession due to the deteriorating
rate of leaders’ moral and ethical conduct among employees. This led to
the emergence of new theories of Leadership that were more value-laden
and ethical such as “Authentic Leadership.” Practitioners like Bill George,
academicians like Avolio, leadership consultants like Kevin Cashman,
h i
e l
etc, initially recognized the concept of Authentic Leadership. Authentic
leaders are more effective at optimizing their effectiveness to achieve
D
of
superior long-term results.
Authentic leaders are the ones who maintain consistency in their words,

ty
actions, and internal value system. They foster a long-term relationship

s i
with an organization in a self-disciplined manner; such leaders are not

r
only passionate about their work but are deeply grounded in the roots of
e
v
their value system and moral conduct. Balanced processing internalized

n i
moral perspective, relational transparency, and self-awareness are the four

, U
significant constructs of authentic leadership that are widely accepted.
Authentic leadership is an approach to leadership that emphasizes building

O L
the leader’s legitimacy through honest relationships with followers who

S
value their input and are built on an ethical foundation. Generally, authentic

L /
leaders are positive people with truthful self-concepts who promote

O
openness. Building on the simple but essential idea that leaders may

/ C
construct their sense of self-based on who they are as distinct individuals

E
and based on who they are.

D C IN-TEXT QUESTIONS

©D
12. Leaders who create a Shared vision with their followers are:
(a) Transactional leaders
(b) Transformational leaders
13. The managerial approach to leadership style is given by:
(a) Blake and Mouton
(b) Robert House
(c) Hersey and Blanchard

202 PAGE
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 Leadership

6.12 Summary Notes

Leadership largely depends upon the followers’ perception and their

acceptance. There are various leadership styles and theories in literature
that help us in understanding what makes an effective leader. The 19th
century witnessed the rule of dictators, and Power - influence behaviour
among the leaders. The leadership at that time was mostly all about the
one-man show, the Great man theory, and the Trait theories are grounded
in this and were an attempt to search common traits that make a common
h i
man a powerful leader. Even today a leader equipped with such traits
adds to the leadership effectiveness. With time union conflicts, uneducated
e l
D
of
workers, adaptation of new technology, etc., emerged and it became difficult
to generalize trait theory. The focus of leadership researchers turned

ty
towards the behaviour of leaders. The leader’s behaviour plays a crucial

i
role especially in controlling today’s information era’s highly qualified
s
e r
employees. Due to the accelerated rate of technological advancements
and associated unpredictability in the work environment, the need for

i v
contingency and situational leadership arises. The last decades of the

U n
20th century recognized the need for leaders who could develop their

,
followers’ behaviour and transform them into new leaders. This led to the

O L
development of transactional and transformational theories of leadership.
Till today, many organizations are following the transformational style

/ S
of leadership that was introduced in the 20th century. It involves five

O L
dimensions namely attributable and behavioural influence, inspirational
motivation, the focus of intellectual growth, and individual consideration.

/ C
The dawn of the 20th century and the beginning of the 21st century
E
saw some infamous large-scale scams and periods of recession due to
C
D
the deteriorating rate of leaders’ moral and ethical conduct among the

©D
employees. The overall societal loss at the macro level and maintenance
of investors’ trust at the organizational level led to the emergence of
new theories of leadership that were more value-laden and ethical such
as Authentic Leadership. Looking at the various theories it can be stated
that it is difficult to define leadership in few words. The current leader
should follow a style/approach that fits the needs of all the stakeholders.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 6.13 Answers to In-Text Questions

1. Manager, Leader
2. (b) Delegating work
3. (c) Manipulative Leadership Style
4. (c) Great man theory of leadership
5. (c) Contingency theories
6. (b) Behavioural Theories
h i
7. (b) Behavioural Theories
e l
8. (d) Country club
D
9. (c) Task oriented
of
ty
10. (b) Teamwork
11. (b) Teamwork
s i
12. (b) Transformational leaders
e r
i v
n
13. (a) Blake and Mouton

6.14 Self-Assessment U
L , Questions

O
1. Define Authentic Leadership. Are Ethics and trust relevant concepts
S
/
to becoming an effective leader?
L
O
2. State the limitations of behavioural theories of Leadership.

/ C
3. Differentiate between a manager and a leader. Why does a manager

C E need to become a leader?

4. Write a short note on the following—

D D 1. Three Need Theory

© 2. Adams theory
3. Tannenbaum and Schmidt Continuum
4. Managerial Grid
5. Situational Leadership Theory
6. Minzberg Managerial roles

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Leadership

ACTIVITY Notes

Presently work environment has become very challenging in terms

of competition. Additionally, Post Covid-19, many organizations are
working in Hybrid mode (Physically and Work from home). Which
leadership style or combination of leadership styles is more suitable
for the present-day leader?

6.15 Suggested Readings

h i
Koontz, H, Essentials of Management, McGraw Hill Education, 2020.
e l
D
u

of
u Stoner, J. et. Al. Management, New Delhi, Prentice Hall of India,
2018.

ty
Robbins, S. P. Fundamentals of Management: Essentials of Concepts

i
u

s
and Applications, Pearson Education, 2014.

e r
i v
U n
L ,
S O
L /
C O
E /
D C
©D

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L E S S O N

7
Work Teams and Groups
Dr. Nidhi Kesari
Assistant Professor
Shaheed Sukhdev College of Business Studies
University of Delhi
Email-Id: [email protected]

h i
e l
STRUCTURE
D
7.1 Learning Objectives
of
ty
7.2 Introduction
7.3 Work Groups
s i
7.4 Work Teams
e r
7.5 Group Cohesiveness
i v
7.6 Summary
U n
7.7 Answers to In-Text Questions
L ,
7.8 Self-Assessment Questions

S O
7.9
7.10
References
Suggested Reading L /
C O
E /
7.1 Learning Objectives

D C
At the end of this lesson, the student should be able to:

©D
u Analyse the growing popularity of using team in organizations.

u Differentiate between work team and group.

u Compare and contrast types of teams.

7.2 Introduction

In the previous lessons, you have well understood the concepts of individuals and their
behaviours. It is worth mentioning that individual behavior changes when they join a group.
Once an individual is a part of a group, group behaviour as a whole becomes crucial for
206 PAGE
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 Work Teams and Groups

performance. Let’s understand the same with cricket match example. Notes
You must have watched cricket match; either a one day, 20-20 or test
match format. The success and failure completely depends on the team
spirit and team performance. Individual player may be good bowler or
good batsman or good wicketkeeper etc. Even though all the players are
physically and mentally fit but for winning a match, team performance
is essential. If only few players are performing well but others are not,

i
then even a best of the team will fail to win the match. It is important
to understand that if one can play as a team member and build a good
l h
team with essential skill set, nothing can stop the team to achieve its
objectives. The beauty of teamwork can be explained as problems get
D e
of
divided and strengths get multiplied when a team stands together. In
other words, work team is a backbone of an organization. Big ventures
are not possible without a good team.
i ty
r s
Being a student of organizational behaviour, one wants to know how

e
people working in an organization behave or interact with one another
v
i
as an individual, as a team member and/or as a group member for the
n
U
success of the business.

L ,
Employees may be efficient as individuals, but may not be effective when
in an organization they work in a group/team.

S O
7.3 Work Groups
L /
C O
Work groups share information, interact mainly to make decisions and

E /
help every group member in performing and fulfilling responsibility within

D C
their area of operation. They have the following properties:
(a) Roles: Every group member has to play a role in a well-coordinated

©D
expected manner, for which one has to identify their role as per given
position. Identification of role depends upon how others believe us
to act in a given situation. This calls for our own understanding
of others’ beliefs. If the compliance of role is as per divergent
role expectation, it results in role conflict that can be minimized
if monitored closely.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (b) Norms: Norms are acceptable standards of behaviour (do’s and don’ts)
which are shared among the group members. It means groups create
strong pressure on individual members for conformity in respect to
changing their attitudes and behaviour to the group’s standard.
(c) Status: Is a rank or a position assigned to members of a group. The
determinants of status are (i) the power exercised by a person over
others, (ii) ability of a person to contribute to the goals which are

i
set by the group, and (iii) an individual’s personal traits.

l h
(d) Size: The size of the group, which depends on goal, also affects the
group behaviour.
D e
of
(e) Cohesiveness: It is the degree to which group members are willing or
motivated to stay in the group together. The degree of cohesiveness

ty
depends upon the relationship between group cohesiveness and

s i
performance norms that affect group productivity.

e r
(f) Diversity: It refers to the extent to which group members are different

i v
or similar to one another. It identifies both costs in terms of group

n
conflict resulting in dropout rates and benefits in terms of increased
U
,
productivity.

O L
7.3.1 Reasons for Joining Groups

/ S
O L
People cannot live and survive in isolation for a long period. For a variety
of reasons, people join groups. Some of them are as below:

/ C
(a) Security: People join a particular group to get the sense of security

C E from adverse environments and reduce insecurity from threats.

D (b) Self-Esteem: Joining a group increases self-esteem through group

©D
membership.
(c) Affiliation: Groups show association or relationship with a group.
(d) Power: It gives a sense of power to members of the group who join
the group. Group power lies in being united as a group. People

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 Work Teams and Groups

like to control others and make an impact on others. Membership Notes

of group offers power to people and enables them to use it over
others.
(e) Status: People join groups to gain status in the society. It provides
recognition to the members of the group.
(f) Goal achievement: The group is able to achieve organizational goals
which cannot be achieved when working individually.
Types of Groups:
h i
It is generally seen that an organization has different types of groups
e l
D
which work for the achievement of common organizational goals. A group

of
is a collection of individuals who have relation to one another that make
them interdependent to some significant degree. Group can be classified

ty
as formal and informal.

s
(a) Formal Group: Formal group is designated work group defined byi
e r
organization structure. Crew members in the ship are the example
of a formal group.
i v
n
A formal group can be divided into command group and task group.
U
,
(i) Command Group or Functional Group: A command group is

O L
reflected through the organizational chart and determines who
the reporting officer is. Various functions of the organization like

/ S
finance, marketing, human resource, research and development

L
have functional groups.
O
C
(ii) Task Group or Project Group: This group is created to identify

E /
and provide solutions for a specific problem. For a particular

C
project a deadline is fixed and efforts are made to meet the

D
deadline. Budget for these projects are fixed in advance to

©D
facilitate the time bound resolving of the problem. The group
is dissolved when the project gets completed.
(iii) Task Force or Ad hoc Committee: It is very similar to a
task group. As the name suggests, it is temporarily created
to address a specific issue. Task force gets dissolved after
making a recommendation on the specific issue. Issue can be
redesigning of the reward system in the organization.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (iv) Quality Circle: Organizations are very much concerned for
quality and want to ensure that each employee is committed
to maintaining quality. A small employee group is created to
deal with productivity, and quality related issues. This group
ensures that issues related to quality are resolved so that
organization’s commitment to quality can be ensured at all
times.
(b) Informal Groups: Informal groups are more social in nature. These
groups are not defined by role relationships. The behaviour that team
h i
e
members should engage in are stipulated by and directed toward l
D
organizational goals. Employees from different departments playing

of
chess together is an example of informal group.
Informal groups are also classified into two groups:

i ty
(i) Interest Group: Interest group is a group where people come

r s
together to attain a specific objective with which each one

e
is concerned. A common interest binds the group members.
v
n i
Members may not belong to the same organization or department.
Joining and leaving the group is at the will of the members

, U
and nothing is formal. For example, the Indian Commerce

O L
Association.
(ii) Friendship Group: People have social needs and want to be

/ S
part of some social group. Social activities, religious beliefs,

O Lother common basis may create friendship group. Yoga group,

C
potpourri group, and birthday groups are very commonly found

E / in the organizations.

D C Difference between formal and informal groups:

Basis for Formal Group Informal Group

©D
difference
1. Meaning Groups accomplish a specific Groups satisfy social needs
task
2. Formation Deliberately Voluntarily
3. Size Large Comparatively small
4. Life It depends on the type of group It depends on the members
5. Structure Well defined Not well defined
6. Importance Given to position Given to person

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 Work Teams and Groups

Basis for Formal Group Informal Group Notes

difference
7. Relationship Professional Personal
8. Communication Moves in a defined direction Stretches in all the directions

7.3.2 Group Development Process

All groups go through various stages which are as follows:
(a) Forming: The first stage of group development is forming, which
h i
brings together a group of individuals who look upto the leader for
e l
guidance and direction regarding the goals, tasks and skills required
D
of
to achieve the goals.
(b) Storming: This stage is one of intergroup conflict which is concerned
with who will control the group. Members accept the existence
i ty
r s
of the group but resist the constraints it imposes on individuals.

e
Members may feel agreeable or frustrated with the task or with

v
other members of the group.

n i
U
(c) Norming: In the third stage, members begin to take greater responsibility

,
for tasks and come forward to resolve issues, setting up of group

O L
processes, formulation of group policies, procedures and values
resulting in developing confidence in the group. Members also

/ S
express their satisfaction to be part of the group.

L
(d) Performing: The fourth stage is performing. Now the group is functional
O
C
with active members who take initiatives and involve themselves

E /
to complete a task. Group members adhere to the group norms and

C
collective efforts are made to ensure the group effectiveness.

D
(e) Adjourning: It is the final stage in group development which involves

©D
the termination of task and disagreement from relationships. The
group may have mixed feelings. Some may be thrilled over their past
achievements and performances, some may be unhappy to depart.
This stage may happen for some groups quite early and some may
experience it in a long run.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes IN-TEXT QUESTIONS

1. _______ groups are deliberately created by managers to carry
out specific tasks.
2. Task groups, project groups or ad hoc committees are the forms
of _______ formal groups.
3. Group formation follows the sequence of _________.

i
4. A functional or a product department are the forms of ________
groups.
l h
5. _________ provides structure to the group.
D e
of
6. The first stage of group development process is ________.
7. The last stage of group development process is ________.
8. Work group has________ accountability.
i ty
9. Work group goals are ________.
r s
e
10. ________ has face to face interaction.
v
n i
11. The formations of informal groups are ________.

U
12. Friendship group is an example of ________.

,
L
13. Quality Circle is an example of ________.

O
14. Arrange the following in right sequence:
S
/
(i) Adjourning
L
C O (ii) Performing

/ (iii) Forming

CE
(iv) Storming

D D (v) Norming

© 7.4 Work Teams

A work team generates positive synergy through coordinated efforts. Team
performance increases due to coordinated individual efforts. Individuals
contribute to goals and are accountable for the same. Individual inputs

212 PAGE
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 Work Teams and Groups

such as goal (collective performance), synergy (positive), accountability Notes

(individual and mutual), and skills (complementary) are crucial.
In business terms, teamwork means when a group of people use their
skills to overcome each other’s weakness by collaborating to achieve a
mutual goal and creating a synergy effect. In other words, setting aside
any personal conflict and coming to a mutual conclusion that benefits
the group and the organization is teamwork in business. It involves
constructive feedback and improving each other’s ability without any
personal grudges and feuds.
h i
Teamwork has tremendous power. A team with good tuning can multiply
e l
the efficiency of a person by many times, and the total output can be
D
of
unimaginable.

7.4.1 Types of Teams

i ty
r s
e
Teams have the potential to out stand products, provide services, coordinate

i v
different projects and negotiate the deals and make decisions. This section

U n
describes the four most common types of teams in an organization.
These teams are capable of delivering results and achieving the goals in
a focused manner.
L ,
O
(a) Problem Solving Teams: A team of 5 to 12 employees of the same

S
L /
department meet on a weekly basis to discuss issues related to
efficiency, work environment and quality concerns. They discuss

O
the matter and make recommendation to the manager. They can
C
E /
only recommend the solutions and have no authority to implement
the recommendations.

D C
(b) Self-Managed Work Teams: Self-managed work teams are ahead of

©D
problem solving teams. They not only make recommendations but
also have authority to implement the solutions and take ownership of
the results. These teams have 10 to 15 employees who are engaged
in interdependent or highly related jobs and are fully responsible
for the jobs which they have been assigned with.
(c) Cross-Functional Teams: Cross functional teams are formed with
the employees who come from different work areas but more or less
from the same hierarchical level. This team is formed to accomplish

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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes a task. Cross functional teams have become very popular because
of their capacity to handle complex projects.
(d) Virtual Teams: Teams which meet virtually are commonly termed
as virtual teams. All above teams meet face to face and perform
their tasks. Virtual teams use computers, internet, software and other
aids to let team members meet at a virtual platform even though
members are physically dispersed. During Covid 19 pandemic, many
of us have used virtual platforms to conduct meetings and connect
colleagues with specific goals. We have experienced how it feels to
h i
e
be virtually present. Video conferencing has become very common.
l
D
of
7.4.2 Difference between Group and Team

ty
Terms ‘groups’ and ‘teams’ are used interchangeably. Cane suggests that

i
organizations are sometimes unsure whether they have teams or simply
s
r
groups of people working together. Difference between team and group
is discussed below:
v e
ni
Basis Team Group

U
Definition A team is a cooperative When two or more persons interact

,
small group in regular and are interdependent on each

O L contact that is engaged in

coordinated action. Team
other for achieving an objective, it
is called a group. In other words,

S
is a specific type of group, a group refers to a collection of

L / that holds interdependent

roles and goals.
individuals who may interact.

C O
Common superior Team may not have a Group has a common superior.

E / Interaction
common superior.
Team may not have face Group has face to face interaction.

D C Commitment
to face interaction.
Team members are highly Group members are not much

©D
committed to work. committed to work.
Interdependence Team has higher degree Group has small degree of
of interdependence interdependence.
Accountability Team members themselves Group members are not themselves
are mutually accountable. so accountable.
Size Limited Medium or large
Leadership Shared or rotating Solo
Synergy Positive Neutral (sometime negative)
Skills Complementary Random and varied

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 Work Teams and Groups

7.4.3 Creating Effective Teams Notes

Nothing becomes effective without putting in some effort. So to make a

team effective, it calls for efforts from the management. Our discussion
is based on Team effectiveness model that has four components- context,
composition, work design and process. Let’s discuss.
Team Effectiveness Model

i
Context Composition Work Design Process
Adequate resources Ability of members Autonomy Common purpose
l h
Leadership and
structures
Personality Skill variety Specific goals

D e
of
Climate of trust Allocating roles Task identity Team efficacy
Performance Diversity Task significance Conflict levels

ty
evaluation and
reward systems
s i
Size of teams

e r
Social loafing

v
Member flexibility
Member preferences
n i
, U
I. Context: Factors which significantly contribute towards effectiveness
are adequate resources, leadership and structures, climate of trust
L
and performance evaluation and reward system.
O
/ S
Adequate Resources: Scarcity of resources is the limitation

O L
which almost all teams face. This reduces the ability to give
their best and perform effectively to achieve its goal. Teams

/ C
are dependent on the organization to provide adequate resources

C E
to the teams. Organisational support is crucial. Resources are
critical for teams. Timely information, optimum staff, adequate
D
equipment and administrative assistance are critical for the

©D
teams.
Leadership and Structures: All the members in the team have

to perform certain tasks. This is decided by the team leader.
Leader not only leads the team but play an important role in
the team. Leader empowers the team members and plays the
role of a facilitator.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Teams that establish shared leadership by effectively delegating

it are more effective than teams with a traditional single-leader
structure.
Climate of Trust: Trust is the base of every successful team.
Trust among members and leaders facilitates cooperation,
creates bond, increases capacity to bear risk and reduces
vulnerabilities. A climate of trust makes a strong foundation
for a team.

h i
l
Performance Evaluation and Reward system: Rather than

should recognize team players and reward individuals for

D e
having individual performance evaluation system, organisations

of
their team performance. Organisations must adopt group
based appraisals, gain sharing, profit sharing, and small-group

i ty
incentives to motivate teams for attainment of goals by team
efforts.
r s
e
II. Team Composition: Each member in the team is selected on the
v
n i
basis of their skills sets and abilities. Selection is very focused and
limited. Under team composition the ability, member’s personality,

, U
role allocation, team size, diversity, and members’ flexibility and

O L
preference for teamwork are discussed below:
Abilities of Members: Each member of the team is important.

/ S
Selection depends on skills, knowledge and abilities. Members
L
must complement each other. Selecting the best of the employees
O
C
is not the key. Sometimes a mediocre employee turns out to

E /
be excellent and determined team builder and has precision

C
for work. Managers need to understand the requirements of

D
the team. For complex problems and high ability teams with

©D
intelligent members must be selected.
Personality of Members: Individual behaviour is significantly
influenced by personality. Different dimensions of personality
are crucial for team effectiveness. Big five personality model
provides a good base about the relationship between personality
and effectiveness. Teams which reflect high conscientiousness
and are open to experiences are better performers. Studies
suggest that specific behavioural tendencies such as personal

216 PAGE
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 Work Teams and Groups

organization, cognitive structuring, achievement orientation, Notes

and endurance boost higher levels of team performance.
Allocation of Roles: Identification of potential roles and
selecting the members keeping in mind the roles can be very
effective. Team should have a proper blend of experienced
and skilled members. Managers must understand individual
strengths and weaknesses and allocate assignments that most
suit them.

h i
l
Diversity of Members: Diversity, like race and gender diversity,

among the team can show different results. One, it may not
at all impact the team performance. Two, it may impact team
D e
of
performance in a positive manner and third, may produce
negative impact on team performance. Diversity in function,
education, and expertise are positively related to group
i ty
s
performance, but these effects are quite small and depend

e r
on the situation. Leaders play an important role in managing
diversity effectively.
i v

U n
Size of Teams: Effectiveness lies in keeping the team small
in size. Most effective teams have five to nine members.

L ,
Managers must focus on roles/tasks and accordingly select

O
most responsible and accountable members. Small is beautiful
is the mantra.
/ S

O L
Member Flexibility & Preferences: Every employee is not a
team player. Many employees prefer to work alone than in

/ C
teams. High-performing teams are composed of members who

C E
prefer working as part of a team. Managers must identify
work preference and accordingly select the members.
D
©D
III. Work Design: Work designs is motivating by nature because it
increases the sense of ownership of work and makes employees
responsible for the tasks done. Variables which are concerned with
work design such as autonomy, skill variety, task identity, and task
significance are discussed below:
Autonomy: Is the freedom to do the task as per my choice

which doesn’t violate the generally accepted rules. It answers
the question ‘how much does the task let employees exercise
its freedom?’

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Skill variety: Opportunity to use different skills and talents to

complete the tasks.
Task identity: Task identity is related to the ability to complete

a task in given time. A task needs to be understood well and
identified completely to execute it well.
Task significance: Task significance means a task should create

substantial impact on others. Team members should be more

i
than willing to work on tasks or projects which create impact
on others.
l h
e
IV. Team Processes: Common purpose, specific team goals, team
D
of
efficacy, level of conflict, are some of the variables which contribute
to team effectiveness. The idea behind team process is to enhance

ty
process gains by reducing process losses to create positive synergy.

s i
Common Purpose: Organization’s mission has to translate at

r
all levels of the organization. Teams follow the mission and
e
v
develop their goals. Strategies are developed to achieve the

n i
goals. Clarity over the purpose is vital for success of the

U
teams. Directionless team will lead to nowhere. It is worth

L ,
spending time to thoroughly draft the mission, vision of the
organization and a specific team.

S O
Specific Goals: Goals must be measurable, specific and

L /
realistic. Best of the specific goals fail if they are not properly

O
communicated. Goal should be challenging. Team performance

C
increases with attainable but difficult goals.
/
C E Team Efficacy: Teams work hard to achieve success and success

motivates the teams to work harder. Managers can provide
D training to the employees and help the team achieve small

©D
targets to boost their confidence. High level of confidence will
increase the capability to deliver and make a team effective.
Conflict Levels: Conflict is not always bad. Conflict has a

complex relationship with team performance. Functional conflicts
are positive and dysfunctional conflicts create frustrations.
Task related conflicts are functional in nature and relationship
conflicts are dysfunctional in nature. Moderate level of task
conflict like disagreements among members on certain issues

218 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Work Teams and Groups

may ignite creative thinking and team may lead to better Notes
decisions. Dysfunctional conflicts like incompatibilities and
tensions among members may become complex and lead to
negative outcomes.

IN-TEXT QUESTIONS
15. A work team generates positive synergy. (True/False)

i
16. Team performance increases due to coordinated efforts.
(True/False)
l h
17. A team with good tuning multiply the productivity of the person.
(True/False)
D e
18. Virtual teams connected through the use of internet.
of
ty
(True/False)

s i
19. Video conferencing is an example of virtual team.(True/False)

e r
20. Team members themselves are __________ accountable.

i
21. The goal of team is __________ performance.
v
22. The leadership of team is __________.
U n
,
23. There are __________ components of effective team.
L
O
24. Strategies are developed to the goals.

/ S
25. Autonomy is the variables of __________.

L
Social Loafing: It is the tendency when individuals put less effort to
O
C
complete a task when working collectively than working alone. There
/
is a general belief that productivity of the group working together will
E
C
be higher than the total performance of the individual members working

D
independently in the group. Members can engage in social loafing so

D
making members individually and jointly accountable is logical.

©
7.5 Group Cohesiveness
Group cohesiveness is important for smooth functioning of a group.
Cohesiveness is the tendency of a group to remain together while working
towards a goal for emotional need satisfaction of its members. It develops
over time.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Factors that influences group cohesiveness are:

(a) Time spent together
(b) Size of the group
(c) Structure of the group
(d) Agreed upon group goals
(e) Inter-group competition
(f) Task commitment

h i
(g) Group pride
e l
D
(h) Favourable evaluation

of
Advantages of group Cohesiveness:
(a) Worker satisfaction
(b) Low turnover
i ty
(c) Less absenteeism
r s
v e
i
(d) Higher productivity

U n
Factors that increase cohesiveness: Members of a cohesive group share
common goals, remain attached to one another, conform to the group

L ,
standards and unitedly work to achieve the goals. The following factors

O
increase group cohesiveness:

S
L /
(a) Similarity in attitudes, values, beliefs and interests of members
increases group cohesiveness, facilitates communication and develops
O
under­standing amongst group members.
C
E /
(b) Inter-group competition, where two groups compete with each other

C
to reach a common goal increases cohesiveness of each group. A

D basketball championship, for example, will increase cohesiveness

©D
of each team to win the match.
(c) Personal liking and attraction for each other contributes to increased
group cohesiveness.
(d) Success in achieving group goals leads to group cohesiveness.
(e) Size of the group also determines cohesiveness of a group. Smaller
groups are generally more cohesive than bigger groups.
(f) Increase in interpersonal interaction increases attraction of group
members to one another and increases cohesiveness of the group.

220 PAGE
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 Work Teams and Groups

(g) Consensus amongst group members on group goals also leads to Notes
increase in group cohesiveness.
(h) Dependence of members on each other to achieve the group goals
increases group cohesiveness.

7.5.1 Group Think

Group think refers to the group pressure which is created on any member
of the group which influences his ability and thought process to make
h i
decision in particular way. It denotes a situation where members put aside
e l
their opinions and beliefs and try to conform to the group decision. In a
D
of
highly cohesive group, any member’s ideas or opinions or solutions are
influenced by other group members.
Symptoms of Group think:
i ty
r s
1. There is an illusion of unanimity that creates a belief that everyone

e
is in full accord if they don’t speak and abstention becomes in
v
favour.
n i
U
2. Group members present logical reasons and assumptions to rationalize

L ,
resistance from a group member. When a decision is agreed upon, that
course of action is followed. It stops the member from reconsidering
his opinion.
S O
L /
3. Members apply direct pressure on those who do not agree to conform.

O
4. Members avoid deviating from group consensus by keeping silent

C
/
about their doubts and difference of viewpoints.

E
What causes Groupthink
C
D
(a) Dictatorial leadership

©D
(b) Group cohesion
(c) Dislike of confrontation
(d) Time constraints
(e) Decisional Stress
How to Minimise Groupthink
(a) Managers can monitor group size. As size increases, people grow more
intimidated and hesitant. There is no magic number that eliminates

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes groupthink, though individuals feel less personal responsibility when

group size is large.
(b) Group leaders should be encouraged to be impartial.
(c) Deliberations of all kinds should be open and all divergent of views
should be welcomed from the members. Leaders should play active
role to make this process free and devoid of pressure tactics.
(d) Stimulate an environment of healthy debate to avoid groupthink so
that better ideas may arise.
h i
e l
(e) Have people from different backgrounds who have different experiences,

D
beliefs, and views which prove to be beneficial in avoiding groupthink

of
and can lead a productive debate.
(f) Include members of other departments to get different perspectives.

i ty
(g) Take time enough over decisions that enable you to properly analyze

s
the situation and come to a rational response.
r
e
(h) Consult an outside expert to get knowledge and information that
v
members don’t have.
n i
7.5.2 GroupShift
, U
O L
Group shift refers to the tendency of group members to exaggerate their

/ S
positions that they hold in the beginning of group discussion. While taking

O L
decisions in groups, the discussion leads to a significant shift from the
initial positions of members in which they were before the discussion.

/ C
It is seen that group decisions are more conservative and riskier than

C Eindividual decisions. Group decisions set individual members free from

D
accountability for the group’s final choice. No single individual can be

©D
held fully responsible even if the decision fails. Group can undertake
greater risk in this case.
The main reasons for groupshift are diffusion of responsibility throughout
the group by members. It is said that smaller groups have higher groupshift
than larger groups.
Difference between Groupthink and Group Shift:
1. Groupthink refers to the group pressure which is created on any
member of the group which influences member’s ability and thought

222 PAGE
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 Work Teams and Groups

process to take decisions in a particular way, whereas, groupshift is Notes

the tendency of group members to exaggerate their initial positions
that they hold in the beginning of group discussion.
2. In groupthink, the group creates pressure on the individual member,
whereas, in groupshift, the individual member creates pressure on
the group.
3. In groupthink, popular view is favoured and personal view is put

i
aside whereas, in groupshift, due to group influence personal view
becomes much stronger.
l h
Techniques to Eliminate Groupthink & Groupshift
D e
of
The following techniques are used to eliminate groupshift and groupthink
from a group.

ty
A. Brainstorming: It is a process of generating ideas in which group

s i
leaders state the problem in a clear manner so all participants

e r
understand and are encouraged to interact and think the unusual,

i v
while withholding any criticism of those alternatives. All ideas

U n
are recorded for later discussion and analysis with pros and cons.
Brainstorming develops group cohesiveness. The following are the

solution:
L ,
two brainstorming techniques that help groups arrive at a preferred

S O
/
(a) Nominal Group Thinking

O L
It is more structured than brainstorming but also very similar. Group
coordinator describes the problem and members independently

/ C
write solutions without discussing among themselves. This

E
eliminates the tendency of groupthink. Then all the responses
C
D
are collected, discussed and answered by the members who

©D
have written them. After discussion based on evaluations, a
rank is assigned by members and the solution which gets the
highest ranking is the final decision.
The nominal group technique is an inexpensive means for
generating a large number of ideas. In this technique, the
following steps are taken:
(i) Alternatives or solutions are independently written by
each member.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (ii) All ideas are recorded and no discussion is initiated till
the time all ideas are presented by the members.
(iii) Ideas are discussed and the group evaluates them.
(iv) Ideas are ranked by each member independently.
(v) Final decision is based on the members rank assigned to
the ideas.
(vi) Idea which gets the highest rank by most of the members
is the final decision.
h i
(b) Electronic meeting:
e l
D
Meetings conducted electronically with the use of computers

of
are termed as electronic meetings. This is similar to nominal
group technique but is conducted through electronic mode.

i ty
Computer programmes are used for secrecy which encourage

s
group members to take independent decisions without the effects
r
e
of groupthink. An interacting group is good for achieving

i v
commitment to a solution. It minimizes social pressures and
conflicts.
B. Delphi Technique
U n
L ,
It is a technique in which questionnaires are sent to members located

O
at different places. The results of the questionnaires are compiled

S
L /
and a copy of results is sent to all members to review the results
and respond to the second questionnaire which may generate new

O
solutions. This process is repeated until a consensus is reached.
C
/
CE
IN-TEXT QUESTIONS

D
26. Group cohesiveness develops over time. (True/False)

© D 27. One of the advantages of group cohesiveness is less absenteeism.

(True/False)
28. Brainstorming is a process of generating ideas. (True/False)
29. The nominal group technique is an inexpensive means for
generating a large number of ideas. (True/False)
30. Delphi technique in used to develop consensus. (True/False)
31. Group cohesiveness is important for the ______ functioning of
a group.

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Work Teams and Groups

32. Groupthink refers to a phenomenon. Notes

33. Groupthink denotes a situation where members ______

their opinions and beliefs.
34. Group shift refers to the tendency of group members to ______
their initial positions that they hold in the beginning of group
discussion.
35. The main reasons from groupshift are of responsibility.

h i
l
(a) diffussion
(b) fusion
D e
of
(c) both (a) & (b)
(d) None of the above
36. Smaller groups have ________ groupshift than larger groups.
i ty
(a) higher
r s
(b) lower
v e
(c) both (a) & (b)
n i
(d) None of the above
, U
CASE STUDY
O L
/ S
Mumbai’s Dabba Walas

O L
Mumbai’s Dabba wala is not a new name for any Indian. They have

C
gained lot of popularity not because of glossy business but because

E /
of their efficiency and commitment to work. Dabba Wala’s case study

C
is discussed in the most renowned business schools in the world. The

D
high level of effectiveness has earned them a six sigma certification

©D
for which other businesses strive and dream of.
The flawless quality service since 1890 has ensured complete customer
satisfaction with regards to the reliability of the system from twelve
decades in India.
Dabba Walas run a tiffin service in Mumbai whose objective is supply
of packed lunch in tiffin from the customer’s homes to the work place
every working day. They arrange the collection of packed lunch in

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes traditional tiffin boxes, load them on local trains (a compartment is

reserved for the bulk tiffins) and deliver to all the areas in Mumbai
including suburbs of Mumbai. These meals are cooked and packed
by wives or mothers (or sometimes local restaurants) for individual
office workers in central Mumbai. The noticeable feature of this
delivery is that every office workers gets home tiffin every working
day on time without any fault or delay. Obviously, the contents (in

i
terms of variety and taste) of each tiffin box are unique, which is

l h
the central appeal of the service. When the lunch time is over in the

place and return them to the workers’ homes.

D e
day, the dabba walas again collect the empty tiffins from the working

of
The supply system adopted by dabba walas is extremely unique and
full of risks. At each of the central stations, where train stops for

i ty
about 20 seconds, other members of dabba wala teams unload the

r s
tiffin boxes for destinations near the station and sort them for hand

e
delivery to the offices and workshops where the individual recipient

v
n i
work. Sharp around 12:45 pm tiffins are delivered and then the process
is reversed to return the empty boxes to the homes. The service
U
cost per box is about Rs. 300 per month and each dabba wala earn
,
L
about Rs. 4,500 a month. Customers pay one month’s bonus to the

O
organization for the Diwali festival.

S
L /
This seems to be simple process but it’s a highly complicated, precisely
well-coordinated operation. Mumbai city is known for its traffic chaos
O
and local train rush. Traffic delays and occasional chaos are very
C
E /
common. Some of the dabba walas negotiate the traffic on foot and
bicycle at a cracking pace, irrespective of weather conditions; The

D C tiffin must get through.

©D
The error rate is said to be vanishingly very small; one box may go
astray every two months; about one in six million deliveries.
One of the eye-catching point is that there is no government or IT
support except special reserved train coach, no track and trace, no
computers, no bar codes is levelled, just a handwritten code on each
box that allows the dabba walas to identify or recognize which station
the box has to be sent to and unloaded, its ultimate destination and
its return address.

226 PAGE
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Work Teams and Groups

Many of the dabba walas have low level of literacy, but their ability Notes
to decode and correctly route the boxes that they carry through the
crowded streets is the key to the whole system. This kind of supply
chain system requires very low levels of capital intensiveness. It is the
team work that makes the service happen. Dabba walas commitment
has made them special and the guiding force behind this commitment
is Shivaji. In the name of Shivaji the members find the motivation

i
to do the hard work and serve people with their home cooked food.
They have a team of 5000 dabba walas who serve almost 2,00,000
l h
Mumbaikar daily.
The future of the service
D e
Of late, the migration of workers in search of job in metro cities at
of
ty
large is very high. Due to covid-19 pandemic, people are hesitant to

i
have meals from the nearby local road side restaurants or dhabas.
s
e r
People from all spheres of life, irrespective of regional styles and
traditions, love to eat home cooked hygiene food. This diverse range

i v
of home- prepared meals reliably to the individual in the workplace is

U n
high in demand. The growth of fast food centre is a global phenomenon

,
who also delivers fast food at destination as they claim as hygienic.

O L
They do have a website and are now able to accept orders via the
site or by SMS. It requires frequent ordering every day which is quite

/ S
monotonous for the office going workers. It is also seen that some

O L
meal delivery centres claim that they supply home cooked hygiene
meal on order at destination but it is good only for few days or

/ C
emergency time not for all days in terms of variety, quality and taste.

C E
The reasons for using dabba walas services are the following appeals:

D
1. Homemade food is cheaper and hygienic.

©D
2. Homemade food is best for health as against junk foods.
3. If you love to eat food made by your wife or mother, dabba
walas is the solution.
4. They assure that they deliver your home cooked meal on time
at right destination.

PAGE 227
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Your tasks are:

(a) If a team is defined as a group of dedicated people working
towards a common goal, discuss the strengths and weaknesses of
the dabbawalas practice of making team members as shareholders,
rather than employees.
(b) Analyze the cohesiveness and performance of the dabbawalas team.
(c) To what extent does the dabbawalas service display the features of
an effective work group?
h i
e
(d) Why has technology played a very meager role in the development
l
D
of dabbawalas service so far? Is this likely to change in future?

of
(e) Identify ways in which this might affect team spirit of the organization.

7.6 Summary
i ty
r s
e
Most of the work in organizations is done in teams. People often join

i v
groups to satisfy their needs of security, status, self-esteem, affiliation,

U n
power and goal achievement. In any organization, different types of groups
coexist. Whatever be the kind of group, every group goes through five

L ,
stages of development, namely forming, storming, norming, performing
and adjourning. Group cohesiveness is important for smooth functioning
of a group.
S O
L /
Several factors influence group cohesiveness. Various decision-making

O
techniques are used for consensus in decisions. Groupthink and groupshift

C
/
are two very important concepts in group decision-making.

C E7.7 Answers to In-Text Questions

D
©D
1. Formal
2. Temporary
3. Forming storming norming performing
4. Command
5. Forming
6. Forming
7. Adjourning

228 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Work Teams and Groups

8. Individual Notes
9. Share information
10. Group
11. Voluntarily
12. Informal groups
13. Formal groups
14. (iii); (iv); (v); (ii) and (i)
15. True
h i
16. True
e l
17. True
D
of
18. True

ty
19. True
20. Mutually
s i
21. Collectively
e r
22. Rotating
i v
23. Four
24. Achieve
U n
25. Work design
L ,
26. True

S O
27. True
28. True
L /
29. True
C O
30. True
E /
31. Smooth

D C
32. Psychological

©D
33. Set aside
34. Exaggerate
35. Diffusion
36. Higher

PAGE 229
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 7.8 Self-Assessment Questions

1. What do you mean by work team?
2. What do you mean by Work group?
3. What is the difference between a group and a team?
4. What are the different types of teams that exist in an organisation?
Why do people join groups?
5. What are the main characteristics of a group?
h i
e
6. What are the various types of formal groups? Discuss with examples.
l
D
7. Explain the features of an informal group. Describe the types of

of
informal groups.
8. Describe the five stage model of group development.
9. Explain the term ‘group cohesiveness’.
i ty
r
10. Discuss the group decision-making techniques.s
v e
i
11. What is the difference between groupthink and groupshift.
I. Match list I with List II:
U n
1. Group
List I

L , (a)
List II
Two or mor e inte r a c ting a n d

S O interdependent individuals come

L /
2. Work group (b)
together to achieve specific goals
Interacts primarily to share information

C O and to make decision

E / 3. Formal group (c) Designated work group defined by

organization structure

D C 4. Informal group (d) It is social in nature

©D
Answers:

1. (a) 2. (b) 3. (c) 4. (d)
II. Match list I with list II:
List I List II
1. Brainstorming (a) Develops group cohesiveness
2. Delphi technique (b) Develops consensus

230 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Work Teams and Groups

List I List II Notes

3. GroupShift (c) No single individual can be held fully
responsible even if the decision fails
4. Groupthink (d) An illusion of unanimity that creates
a belief that everyone is in full accord
Answers:

1. (a) 2. (b) 3. (c) 4. (d)

h i
7.9 References
e l
D
of
u Robbins S. P., & Judge, T. A. (2017). Organisational Behaviour. 17th
Ed. Pearson.

ty
u Pareek, U., & Khanna, S. (2016). Understanding Organizational

s
Behaviour. 4th Ed. Oxford. Mullins, L. J. (2010). Management &
i
Organisational Behaviour. 9th Ed. Printice Hall.
e r
i v
7.10 Suggested Reading

U n
u
Vikas Publication.
L ,
Singh., K. (2015). Organisational Behaviour Text and Cases. 3rd Ed.

S O
L /
C O
E /
D C
©D

PAGE 231
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
L E S S O N

8
Decision Making
Dr. Nidhi Kesari
Assistant Professor
Shaheed Sukhdev College of Business Studies
University of Delhi
Email-Id: [email protected]

h i
e l
STRUCTURE
D
8.1 Learning Objectives
of
ty
8.2 Introduction
8.3 Meaning of Decision Making
s i
8.4 Process of Decision Making
e r
8.5 Decision Making Models
i v
8.6 Decision Making and Ethics
U n
8.7 Summary
L ,
8.8 Answers to In-Text Questions
S O
8.9 Self-Assessment Questions
L /
O
8.10 References

/
8.11 Suggested Reading
C
C E
8.1 Learning Objectives
D
©D
At the end of this lesson, the student should be able to:
u Explain the process of decision-making.
u Describe the individual and group decision-making.
u Explain the concept of rational decision making and contrast it with bounded rationality.
u Understand the role of ethics in decision making.

232 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Decision Making

Notes
8.2 Introduction
Decisions are an essential part of one’s life, both personally or professionally.
Decision-making is an integral part of a managerial job. Decisions are
required at all the levels of management, An organisation’s success is
largely driven by its decisions and their execution. Decision making is
the essence of management because functions of management cannot be
performed without decision making.

h i
8.3 Meaning of Decision Making
e l
D
of
A decision is a choice. It is at the core of planning in which managers
have to select the most suitable or appropriate course of action from

ty
several alternative courses achieve objectives. Decision making process

s i
takes place only when managers have two or more options or alternatives.

e r
Decision-making is a tough and conscious process of making objective

i v
decisions which are acceptable by those who would execute them and
are beneficial for the organisation.

U n
,
A manager may make following decisions:

O L
1. Planning: (a) what are the organisation’s long-term objectives? (b)
what strategies will best achieve those objectives? (c) what should

/ S
be the organisation’s short-term objectives; (d) how difficult should
individual goals be?
O L
C
2. Organising: (a) how many employees should report directly to the

E /
supervisor? (b) how much centralisation should be there be in the

D C
organisation (c) how should jobs be planned? (d) when should the
organisation put into operation a different structure?

©D
3. Leading: (a) how to handle employees who appear to be low in
motivation? (b) what is the most effective leadership style in a given
situation? (c) how will a specific change affect worker productivity?
(d) when is the right time to intervene in a conflict?
4. Controlling: (a) what activities in the organisation need to be
controlled? (b) how should those activities be controlled? (c) when
is a performance deviation significant? (d) what type of management
information system should the organisation have?

PAGE 233
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Definitions:
Decision making has been defined by several management scholars. Some
of the definitions are given hereunder:
According to Stoner, Freeman & Gilbert, “Decision making is the
process of identifying to deal with a specific problem or take advantage
of an opportunity.”
R. Terry defines decision making as the “Selection of one behaviour
alternative from two or more possible alternatives.”, “Decision making
h i
involves the selection of a course of action from among two or more
e l
possible alternatives in order to arrive at a solution for a given problem.”
D
of
Weihrich & Koontz state that - All management work is accomplished
by decision-making.

ty
According to Allen – Management decision making is the work a manager

s
performs to arrive at conclusion and judgment.
i
e r
According to Shull, Delberg and Cummings - “A conscious and human

i v
process involving both individual and social phenomena based on factual

U n
and value premises which concludes with a choice of one behavioural
activity from among one or more alternatives with the intention of moving

L ,
towards a desired state of affairs.”

O
Kreitner defines it as “Decision making is a process of identifying and

S
L /
choosing an alternative course of action in a manner appropriate to the
demand of the situation.”

C O
In other words, at every stage of managing, the manager faces the challenge

E /
of making correct, qualitative and effective decision to get the best out

C
of a situation. Managerial decisions are formally directed towards making

D
the organisation a functional entity preserving its identity and maintaining

©D
continuity in its working life.
Managers at all levels make decisions such as top level executives take
decisions on major issues and matters that are directly concerned with
the survival, profitability and growth of the organisation. For handling
the matters arising from day-to-day operations, lower level managers
are granted authority to decide upon them. Managers at all areas of
organisations make decisions regarding production, distribution, finance,
purchase, personnel, research and development etc.

234 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Decision Making

Characteristics: Notes
Decision-making has the following features:
1. Decision-making is goal-oriented, sectional, departmental and
organisational goals.
2. It is required for every managerial function though it is closely
related to planning. How good are the decisions determines how
effective are the plans.
3. It is a process of choice; choosing a course of action to solve
h i
specific problems.
e l
4. Problem-solving is the basis for decision-making. If there are no
D
of
problems, there is no decision-making.

ty
5. Decisions are made to solve problems and exploit opportunities.
Both problems and opportunities, need decision-making.
s i
r
6. It is a pervasive process. Decisions are made in business and non-
e
v
business organisations. In business organisations, they are made
at all levels.
n i
U
7. Nature of decisions varies at different levels. Organisational
,
L
effectiveness is determined by quality of decisions at all levels.

O
8. It is required for every situation — certainty, risk or uncertainty.

S
L /
9. It is situational in nature. Different situations (internal and external)
require different decisions. Not to decide is also a decision in
some situations.
C O
E /
10. It is a continuous process. Managers continuously solve problems

C
through decision-making.

D
©D
11. It is an intellectual process. Judgment, knowledge, and creativity
develop solutions to problems.
12. A manager is oriented towards making decisions rather than
performing the actions; actions are performed out by others.

PAGE 235
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes IN-TEXT QUESTIONS

1. Long-term, major, strategic decisions are taken at the top and
relatively short-term, minor, operational decisions are taken at
lower levels.  (True/False)
2. Objectives decisions are based on knowledge, value judgment,
creativity and innovative abilities. (True/False)
3. Managers make same decisions in same situations.
(True/False)
h i
e
4. Both problems and opportunities need decision-making. l
D
(True/False)

of
5. Decisions are made only in risky situation. (True/False)

ty
6. ___________decisions are taken at the top level.

s i
7. Operational decisions are taken at levels.

e r
8. Most decisions in the complex environment are __________in
nature.
i v
particular way.
U n
9. A decision is a __________ choice to behave or to think in a

L ,
10. Decision making is a ________ process.

S O
/
8.3.1 Types of Decisions
L
O
Decisions can broadly be grouped as Programmed decisions and Non-
C
E /
programmed decisions.

C
I. Programmed Decisions

D These decisions relate to structured situations, where the problem is

©D
routine and repetitive.
The routine problems may not always be simple. There may be complex
routine problems. For example, inventory is ordered when it reaches the
re-order point. If there is sudden increase in demand, managers cannot
wait for inventory to reach the re-order point. Orders are placed before
this level. Ordering inventory is, thus, a routine but ordering before the
re-order point is a routine but complex problem.

236 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Decision Making

Policies, schedules and procedures guide these decisions. They are normally Notes
taken by middle and lower-level managers. They do not use innovative
ways to solve the problems. Therefore, managers concentrate on important
and crucial activities. Objective judgment and past experience form the
basis for decision-making. These decisions also involve some certainty,
i.e. outcomes of the decisions are, by and large, known. Various types of
programmed decisions are : (1) organisational decisions (2) operational
decisions (3) research decisions, and (4) opportunity decisions.
II. Non-Programmed Decisions
h i
These decisions are taken in unstructured situations which reflect novel,
e l
ill-defined and complex problems. The problems are non-recurring or
D
of
exceptional in nature. Since they have not occurred before, they require
extensive brainstorming. Problems are solved through scientific analysis
and logical reasoning. Subjective judgment is used to assess the situation.
i ty
They are based on partial ignorance as the alternatives and their outcomes
r s
are not known. They are taken in the changing, dynamic environmental

v e
n i
conditions by top-level managers. For example, increase in advertising
expenditure, effective salesman­ship, upgraded technology, quality controls

U
and brand image are expected to increase sales and profits. If, despite all
,
L
this, profits are declining, it requires immediate decision-making. Such

O
decisions are non-programmed decisions. As we move up the hierarchy,

/ S
the need for non-programmed decisions increases. Different types of non-

O L
programmed decisions are: (1) personal decisions (2) strategic decisions
(3) crisis intuitive decisions, and (4) problem-solving decisions.

/ C
Programmed Decisions Non-programmed Decisions

CE
1. Nature of Problem Structured/Routine/Well-de- Unstructured/Novel/Ill defined
fined
2.

D D
Recurrence
Problem
of Repetitive Non-repetitive

3.
4. ©
Method of Solving
Judgment
Policies/Standards/Rules
Objective
Managerial Initiative
Subjective
5. Probability of Out- Some degree of certainty is in- Uncertain
come volved
6. Level of Manage- Middle/Lower-level Top-level
ment
7. Types Organisational/Operational/ Personal/Strategic/Crisis Intui-
Research/Opportunity tive/Problem-solving

PAGE 237
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes A brief description of programmed and non-programmed decisions is

given below:
1. Organisational and Personal Decisions: These decisions reflect
use of authority. Decisions taken in the interest of organisation
are organisational decisions and those taken for personal interests
are personal decisions. Organisational decisions can be delegated
but personal decisions cannot. Managers have authority to make
organisational decisions but not personal decisions. They are based
on personal biases.
h i
e l
2. Operational and Strategic Decisions: These decisions reflect scope

D
of decision-making. Operational decisions are taken in routine.

of
They relate to short-term objectives and are taken by middle and
lower-level managers. Their impact is limited and short-range in

i ty
nature. They are based on defined policies and procedures. Purchase

s
of stationery and raw material are day-to-day decisions based on
r
e
procedures defined for the purchase department.

v
n i
Strategic decisions relate to important and non-recurring problems.
Skill and judgment are used to make these decisions. They relate to

, U
long-term goals, define organisation-environment interface and are

O L
risky in nature. They are taken by top-level managers. Decisions to
update the technology, launch a new plant or change the policies

/ S
are strategic decisions.

L
These decisions affect the whole or major part of the organisation
O
C
and contribute directly to objectives. They are not based on past and

E /
involve major departure from earlier business practices like expansion

C
in international markets, diversification, change in marketing mix

D
etc.

©D
Strategic decisions involve three important elements:
(i) Result element: It specifies the result (objective) to be achieved
through the decision.
(ii) Action element: It specifies the action to be taken to achieve
the result.
(iii) Commitment element: It specifies the dedication, loyalty and
commitment with which decisions are made.

238 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Decision Making

3. Research and Crisis-Intuitive Decisions: These decisions reflect Notes

urgency of decision-making. Decisions which involve regular survey
are research decisions and these made under situations of crisis or
emergency are crisis-intuitive decisions.
4. Opportunity and Problem-Solving Decisions: These decisions reflect
foresightedness. Managers forecast opportunities for organisational
growth. The decision to grow through market penetration and
market development is an opportunity decision. Problem-solving
decision solves a specific problem. To drop a product because it
h i
is unprofitable is a problem-solving decision.
e l
(Market penetration increases sale in the existing markets and market
D
of
development increases sale by entering into new markets with same
or new products).

i
(a) Programmed decisions: Programmed decisions are made with
ty
r s
regard to routine and recurring problems and require the

e
application of a pre-determined set of procedures, techniques
v
n i
and decision rules. As the problem arises, the prescribed
procedure is applied and a decision is made. Decision rules

, U
permit busy managers to make routine decisions quickly without

O L
going through a comprehensive problem-solving procedure. It
encourages lower-level managers to share responsibility, in terms

/ S
of guiding and instructing workers for day-to-day activities;

O L
help to solve the grievances of the workers, for programmed
decisions. It allows higher level managers to concentrate more

/ C
on important non-programmed decisions. So, the structured

C E
problems have to be first defined. The programmed decision
may be of the following three types:
D
©D
(i) Procedure: A procedure is a series of sequential steps
used to respond to a structured problem. For example
selection procedure of an employee.
(ii) Rule: A rule is an explicit statement that tells what can
or cannot be done. For example, the rules of the roads,
rules observed at petrol pump, rules about lateness and
absenteeism permit supervisors to make disciplinary
decisions rapidly and fairly.

PAGE 239
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (iii) Policy: It is a guiding principle for making a decision. It

establishes general parameters for the decision maker. It
may be general policy and specific policy. Policies typically
contain an ambiguous term that leaves interpretation on
the decision maker. Some of the examples of policy
statements may be:
u Nobody would accept any gift from the outsiders
except token gift.

h i
l
u The customer always comes first and should always
be satisfied.

D e
of
u Promotion from within, wherever possible.
(b) Non-programmed decisions: As managers move up the

ty
organisational hierarchy (upper level), the problems they confront

i
become more unstructured that are new or unusual for which
s
r
information is ambiguous or incomplete. Non-programmed
e
v
decisions are unique and non-recurring that require a custom-

n i
made solution. That is why upper-level managers delegate

U
routine decisions to subordinates so that they can deal with

are:
L ,
more difficult issues. Examples of non-programmed problems

S O
Top management lays down the objectives.
/
u

O Lu Top management prepares strategic plans and policies for

the enterprise.

/ C Issue necessary instructions for preparation of department

E
u
budgets, procedures, schedules etc.

D C u Control and coordinates the activities of all the departments.

©D
Characteristics Programmed Non-programmed
Decisions Decisions
1. Type of problem Structured Unstructured
2. Management level Lower levels Upper levels
3. Frequency Repetitive, routine New, unusual
4. Information Readily available Ambiguous or incomplete
5. Goals Clear, specific Vague
6. Ti m e f r a m e f o r Short Relatively long
solution

240 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Decision Making

Characteristics Programmed Non-programmed Notes

Decisions Decisions
7. Solution relies on Procedure, rules and Judgment and creativity
policies
(c) Strategic Decisions: Strategy is a deliberate search for a plan
of action that will develop a business’s competitive advantage
and compound it. The search is an iterative process that begins

i
with recognition of where you are and what you have to go.
The difference between you and your competitors is the basis
l h
of your advantage.
Strategic decisions are usually made by top-level management
D e
of
which are important and critical for the survival, success and
profitability of the organisation.
Every organization has to make decisions throughout the day
i ty
r s
that will impact the outcome of the organization. Decisions can

e
be simple, like deciding on what to wear to work or whether
v
i
to organize a meeting or not. However, strategic decisions that
n
U
impact the direction of the organization are harder to make

,
and are often the most important. The examples of strategic

O L
decisions are the selection of a product and processes, making
capacity planning, selecting location of plant, switching to

/ S
new technology, taking over other organization, and strategic
alliance etc.

O L
C
The main characteristics of strategic decisions are that once

E /
they are taken, it is neither desirable nor feasible to withdraw

C
them as they involve risk.

D
(d) Operational Decisions: Mere formulation of strategic decisions

©D
are not the guarantee of success of any organisation unless
until such decisions are implemented by making many other
operational or tactical decisions such as production planning,
quality control, cost control, inventory control etc. These
decisions are concerned with routine and repetitive matters to
implementation of strategic decisions. That’s why the authority
for making tactical or operational decisions is vested in lower
level management.

PAGE 241
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes The differences between Strategic and Operational decisions

are as below:
Strategic Decisions Operational Decisions
These are long-term decisions These are not frequently taken
These are considered where the These are medium period based
future planning is concerned. decisions
They are taken in accordance These are taken in accordance
with organisational mission and with strategic and administrative
vision processes.
h i
These deal with organisational
l
These are related to production
e
D
growth and factory growth

of
Individual Decision & Group Decision:
Individual Decision: In a practical situation, a person is different from

ty
others in respect of the way of thinking. Some people are logical and

s i
rational and they process information serially while other people are

e r
intuitive and creative and perceive things as a whole. That’s why different

i v
people use different decision-making styles in the organisation such as:

U n
(i) The analytical style: This style has a much higher tolerance for
ambiguity and best characterise careful decision-makers with the

L ,
ability to adapt to or cope with novel and unexpected situations.

O
(ii) The conceptual style: This style has a low tolerance for ambiguity

S
L /
and seeks rationality. They are efficient and logical and require
minimal information.

C O
(iii) The directive style: It makes decisions fast and they focus on the

E / short-run.

D C (iv) The behavioural style: This style has a strong concern for well-being
of the subordinates and usually in this style suggestions from others

©D
are sought.
Individuals have a tendency to think and question before performing,
which is fruitful in analysis and forecasting of an individual’s behaviour.
Advantages of individual decision-making:
(i) Individual generally makes prompt decisions.
(ii) Individual decision-making saves time, money and energy. In other
words, it is cost effective.

242 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Decision Making

(iii) Individuals are responsible and accountable for their own decision. Notes
They have no excuse for their bad acts and performance.
Disadvantages:
(i) An individual uses own intuition and may be biased.
(ii) Individual decision-making is proved more fruitful and productive
in very small business organisation like sole-proprietorship or in
family matter.
(iii) Lack of consensus decision-making.
h i
Group Decision Making:
e l
It is generally believed that two heads are better than one. In group
D
of
decision, the final authority to take decisions is vested in the group itself
rather than in an individual.

i ty
A group decision is one in which more than two people are participating,

r s
deliberating and developing amicable solution to the problem. If group is

e
diverse, better decisions may be made because different group members
v
i
may have diverse ideas based on their background and experience.
n
U
To deal with the problems, the manager is delegated with enough

L ,
authority and within the extent and scope of it decisions are made, both
on important as well as less important matters. Whatever the power and

O
authority they have, they can exercise it only through meetings in which
S
L /
they make decisions unanimously or by majority votes. Such decision
is generally taken in executive body (Board of Directors) or in various

C O
committees formed for the purpose of deciding on various matters at the
/
lower level of the organisation.
E
D C
Sometimes, the superior involves subordinates to get their cooperation
and involvement in decision making in which subordinates may be of

©D
more concern with the objective of their acceptance. Group decisions
may also be in the following form:
(i) Group participation in decision-making: Where the superior shares
authority of decision making by involving subordinates.
(ii) Group decision-making: where the members or subordinates may
share the authority of decision making with the chief executive.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (iii) Workers participation in management: Where the superior and

subordinates may share the authority of decision making with the
workers.
Advantages of group decisions:
(i) Creates Synergy: It is found when output is more than the inputs,
which means whole is greater than the sum of its parts. As group
also creates synergy effects in the quality and productive decisions

i
because two or more members are involved in deliberation and

l
amicable solution of the problems that may increase or improve
h
the results.

D e
(ii) Sharing of information: In group decisions, the members of the

of
group not only sit together around the table for making decisions

ty
but also contribute fruitful information and expertise which increases

i
understanding, clarity and facilitates movement towards a collective

s
r
decision.

v e
(iii) Team spirit: Members involved in group decision-making represent

n i
cooperation, trust, respect and develop a team spirit to get maximum

U
contribution from them.
IN-TEXT QUESTIONS
L ,
O
11. Programmed decisions relate to structured situations, where the

S
/
problem is routine and repetitive. (True/False)

O L
12. Programmed decisions are taken by middle and lower-level
managers. (True/False)

/ C
E
13. Organisational and Personal Decisions reflect use of authority.

C
 (True/False)

D 14. Opportunity and Problem-Solving Decisions reflect urgency.

©D
 (True/False)
. 15. Subjective judgment is used to assess programmed decisions.
 (True/False)
16. Policies, schedules and procedures guide _____ decisions

244 PAGE
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 Decision Making

17. _______ decisions are taken in unstructured situations. Notes

18. _______ judgment and past experience form the basis for
programmed decision-making.
19. Problems in non-programmed decisions are _______ in nature.
20. Operational and Strategic Decisions reflect _______of decision-
making.

i
Disadvantages of group decisions: The flip side of the group decision
making is as follows:
l h
(i) Diffusion of Responsibility: Group members are not themselves
so much responsible and accountable which affects the quality of
D e
of
decision making adversely. Everyone is responsible for a decision

ty
which might mean no one is responsible. They do not exhibit a
sense of responsibility.

s i
r
(ii) Reduce efficiency: Ordinate delay in decision-making is also marked

e
v
in a group decisions because of long discussions, diverse opinions

i
of members and procedural technicalities. It sometimes reduces the
n
U
effectiveness of the decision making process.

L ,
(iii) Encourage indecisiveness: If the least competent member dominates
the group decision, it impedes the efforts of the most competent
ones.
S O
L /
(iv) Groups suffer from social loafing.

O
(v) Groups may also suffer from groupthink.
C
8.3.2 Techniques/ of Individual and Group Decision Making
C E
D
©D
The use of techniques improves the efficiency of decision-making as
well as the quality of decisions made by the manager. These techniques
are as under:
Individual Decision Making Techniques:
There are six decision making styles of an individual. Every individual
is not only different in nature but also their approach of decision-making
differs and depends on different situations.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 1. Deep Deliberation: In this style, the person spends excessive time
and attention on weighing all possibilities before deciding on
any one possibility. This style is appropriate when an issue is of
great importance such as family problem, career choice, or serious
relationship issue.
2. Impulsive Decision: An impulsive behaviour is when one acts
quickly with no thought to the consequences. An impulsive person
is commonly described as hot-headed, rash, unpredictable and

h i
unstable. It is simply a person’s reaction to situation in front of

e l
others. Such decision is often intuitive one. It is inappropriate in

D
the cases related to academic choice, career choice, and relationship

of
etc.
3. Escape: In this style, decision-making is avoided, by giving

i ty
temporary solution and escaping from the situation. Escape would

s
be an appropriate style if one has to face reality and is attempting
r
to avoid it.

v e
n i
4. Compliance: Compliance refers to the act of obeying an order,
rule, or request. It is an integral part of decision-making. In this

, U
style, the decision is made by someone else and the individual

O L
have to obey the decision because they are not comfortable to
take decision due to lack of sufficient information.

/ S
5. Safe playing: Safe playing refers to taking least risky decision. In
L
this style, the person chooses the option that has the least amount
O
C
of risk. It is the best option particularly when high risk is involved

/ in decision-making.

D CE 6. Procrastination: It means voluntarily delaying or postponing actions.

Despite understanding the negative consequences of unnecessary

© D delay, people defer the actions. In this style, the decision is simply
delayed which means refusing to make a decision so that the options
that were once available to them no more remain available. It is
not an effective decision-making style particularly when there is
urgency or a timeline. Often, delaying decision makes the ultimate
decision more difficult. It can be seen as irrational behaviour.

246 PAGE
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 Decision Making

Individual Decision-Style Model Notes

High Analytical Conceptual
Directive Behavioural
Rational Intuitive
Low Way of thinking
Tolerance for
ambiguity

i
The above matrix shows that individual decision behaviour depends upon
a combination of tolerance for ambiguity and way of thinking. On the X
l h
axis we have way of thinking and on the Y axis we have tolerance for
ambiguity. If the tolerance level is high and way of thinking is rational
D e
of
then individual decision style will be analytical. Likewise, if the tolerance
level is low and way of thinking is rational, individual decision style will

i ty
be directive. If the tolerance level is high and way of thinking is intuitive,

s
the decision style will be conceptual and if the tolerance level is low
r
e
and way of thinking is intuitive, the decision style will be behavioural.
Group Decision Making Techniques:
i v
U n
(a) Brainstorming: Brainstorming is a process in which creative thinking

L ,
is encouraged for developing creative solution to problems by
small groups of managers. Generally one of them is given the role

O
of leader of the group who throws light on various aspects of the
S
L /
problems and explains its nature to other members. This technique
does not offer a readymade solution to the problem. Rather, it aims

C O
to generate possible alternative solutions and leads to evaluation

/
for selecting the best one.
E
D C
Rules of Brainstorming:
(i) All the members sit together and start discussing the problems

©D
with generation of creative ideas with tentative solution as a
member of free association one by one without any interruption
by others.
(ii) Each point of view on the problems is recorded in black and
white to make every member familiar with the ideas generated.
(iii) Again, they are given an opportunity to make improvements
upon them.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (iv) Later on each member, one by one is allowed to give suggestion
on the various ideas so generated with the purpose to improve
upon these ideas.
(v) In the subsequent session, ideas so generated are reviewed and
alternatives evaluated for selecting a suitable one.
(b) Delphi Technique: This is the technique in which a small group
of specialised experts are formed to express their opinion on the

i
problem and its solution. The opinion expressed by each expert
independently is not made known to others because anonymity is
l h
question has been framed.
D e
desired. The expert does not know on whose response what new

of
In this technique, the opinions of experts are consolidated and

ty
summarised by the group leader and sent back to the experts for

i
further analysis unless until a unanimous decision comes out to

s
r
solve the problems.

v e
The Delphi technique involves the following steps:

n i
(i) Under this technique, the organisation prepares questionnaires

, U
in two or more sets on various aspects of the problems after
analysing the sets of responded questionnaire.

O L
(ii) The first questionnaire is sent to experts to seek their responses

/ S
independently and after getting the responses of the experts,

O L
the group leader compiles and analyses the responses.
(iii) Again the second new set of questionnaire is sent to the experts

/ C and they are asked to respond. After receiving the response,

C E it is analysed.

D
(iv) If any area remains untouched or untouched adequately, a third

©D
questionnaire may be designed and sent, and the responses
are again compiled and analysed.
(v) The said process is repeated until a unanimity develops on
each aspect of the problem.
(c) Nominal Group Technique: Under this technique, a group of
individuals is formed to address a particular problem. It resembles
the brainstorming technique but is considered to improve the effective
of group decision-making because all the members of group are

248 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Decision Making

physically present in the meeting but discussion among the group Notes
member is not allowed.
In this technique, a problem is presented before the group members
to experience the problem and following steps take place:
(i) Each one is asked to write independently all the possible ideas
to solve the presented problem.
(ii) Thereafter, each member has to present their idea to the group.
(iii) Further, the members are asked to add new ideas to the list on
h i
the basis of the ideas presented by others.
e l
(iv) Once all possible ideas have surfaced and been recorded, the
D
of
members may be allowed to suggest a possible solution and
comment on the ideas with their relative merits and demerits.

i ty
(v) After this, the members privately vote on an idea and assign a

s
particular rank to it on the basis of priority of the alternative
r
solution.

v e
as a solution to the problem.
n i
(vi) The ideas getting the highest aggregate ranking are selected

, U
(d) Fish Bowl Technique: It is a technique of role rotation in which a

O L
group of experts is formed who sit around the table and the members
of the group have opportunities to express their viewpoints as a

/ S
member as well as leaders in each round of discussion which is
L
more structured and direct in nature.
O
/ C
(i) The central place is occupied by a leader who expresses his

E
opinion on the problem with some solution for it. The members

D C
are allowed to ask questions and clarification of the problem.
Member present in the meeting put their point of view one

©D
by one on leader’s opinion. Once his viewpoint is discussed
fully and understood, the leader gives up his chair to another
member who now becomes the leader.
(ii) Again the new leader gives his viewpoint in the light of the
views expressed by the first leader. The members can ask
questions based on the new leader’s ideas which must stem
from the first round of discussion.

PAGE 249
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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes (iii) This cycle of discussion continues till all the members have
done their turn as a group leader.
(iv) At the end, all the viewpoints and ideas are taken stock of and
further discussed collectively to arrive at a suitable solution.
Individual Decision Making Group Decision Making
Pros Cons Pros Cons
Typically Fewer ideas Diversity of Takes longer
faster than ideas and can

h i
l
group decision piggyback on
making
Best Identifying the
others’ ideas
Greater
D e
Group

of
individual in a best individual commitment dynamics such
group usually can be to ideas as groupthink

ty
outperforms challenging can occur
the group
s i
e r
Accountability Possible to put Interaction can Social loafing-

v
is easier to off making be fun and harder to
determine

n i
decisions if
left alone to
serves as a
team building
identify
responsibility

, U
do it. task for decisions.

IN-TEXT QUESTIONS
O L
/ S
21. Group decisions are based on extensive information.

O L (True/False)
22. A list of ideas is prepared which represents different viewpoints

/ C in nominal group technique to decision-making. (True/False)

D CE 23. Delphi technique is used when members are geographically

dispersed.(True/False)

© D 24. _______ decisions are based on limited information.

25. _______ means generating ideas for decision-making.
26. _______ decisions promote creativity to make quality decisions.

250 PAGE
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School of Open Learning, University of Delhi
 Decision Making

Notes
8.4 Process of Decision Making
Decision making process is concerned with developing a consensus that
suits solving a problem.
The rational choice paradigm assumes that decision makers follow the
systematic process which is discussed below:
Step 1: Identify the problem: The first step of decision-making begins
with identification of the problem which is a challenging task. A problem

h i
may define as the discrepancy between the current and the desired situation
i.e., the gap between “what is” and “what ought to be.” The efficiency
e l
of decision-making depends upon definition of the problem. Suppose, the
D
of
management identified the problem that sales data is not readily available

ty
for evaluating whether sales target is achieved or not. It is found that

i
sales representative who works in the field do not have digital mode

r s
of recording data. Further, it is noticed that sales representatives send

e
a requisition for laptops which was not entertained by the department.
v
i
Step 2: Identify Decision Criteria: Criteria define what’s relevant to
n
U
resolving an identified problem. The relevant decision criteria, in regards

,
to the purchase of a laptop may be price, display quality, and memory

L
that will help guide the final decision that can be depicted as:

O
S
Memory and Storage

/
u

L
u Battery life
u Warranty
C O
u Display quality
E /
u Price

D C
Carrying weight

©D
u

Step 3: Allocating weight to the criteria: A simple way to assign weight

is to give the most important criteria a weight of 10 and then assign
weights to the rest using that standard, Such as:
Features Desktop Weight
Memory and storage 10
CPU 8
Battery life 6

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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Features Desktop Weight

Warranty 2
Display quality 3
Carrying weight 0
Price 1
Step 4: Develop Alternatives: At this stage, the decision maker requires
to list viable alternatives using creative thinking and innovativeness that

i
could resolve the problem. Developing alternatives needs to exercise
cognitive flexibility.
l h
D e
Step 5: Analyse the alternatives: Once alternatives have been identified,
a decision maker must evaluate each alternative with pros and cons in

of
the light of the solution of the problems by giving due consideration to

ty
risk involved, time consumed, efficiency of the alternatives and resource

i
position along with ethical and moral value. For this the management

s
r
can take the help of experts in regards to viable, scalable and worthy
of investment.
v e
i
Step 6: Selecting the best alternative: This step is concerned with
n
U
choosing the best alternative or the one that generates the highest

L ,
scores in solving the problem which is cost effectiveness and produces
synergy effect. Selecting the best alternative does not mean that rest of

O
the alternatives are worthless. Other alternatives are ranked as plan B,
S
C and so on.
L /
O
Step 7: Implementation of Decision: Decisions are implemented to

C
achieve the desired outcome. It involves a series of actions and utilisation
/
E
of resources. It must be noted that the lower level managers who have to

D C implement a decision must participate in the process because they will

help to re-evaluate. Before implementing a decision, necessary structural,

©D
administrative and logical arrangements are made.
Step 8: Reviewing Decisions: The last step in the decision making
process involves reviewing the outcomes with regards to the resolved
problems. We should access to what extent objectives are achieved. If
the review shows that the problem still exists, then the manager needs
to assess what went wrong.

252 PAGE
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 Decision Making

8.5 Decision Making Models Notes

There are following popular models of decision-making:

1. Rational Decision-Making Models:
This model is also known as Normative Model. This model assumes that
a man is a rational human being who will apply quantitative techniques
for decision-making to make precise and accurate decisions. While making

i
decision, manager tries to become as much rational as possible. This is
idealistic, rational and prescriptive in nature.
l h
This approach implies the use of scientific and logical methods. The
features of this model are as follows:
D e
of
(a) Being a rational man model, this approach is scientific, logical and

ty
full of reasoning.

s i
(b) It calls for a scientific attitude on the part of managers backed by
empirical verification.
e r
i v
(c) Under this model, managers should not allow his emotions, biases
to interfere with decision-making.

U n
(d) The managers must have clarity of action by which defined goals
can be achieved.
L ,
O
(e) This model assumes that managers have the ability to apply the
S
L /
criteria to analyse the collected information, develop alternatives
and evaluate alternatives in the context of the defined goal.

C O
(f) Every information is fully known and has no time or cost constraints.

E /
(g) The manager must have a desire to optimise/maximise benefits by

C
selecting the best course of action.

D
©D
2. Bounded Rationality Model:
This model is also known as Behavioural model or Administrative Man
model.
In real-life situation, man cannot be always fully rational in his approach
to make decision to solve all types of problems. This is the basis of
developing behavioural approach of decision- making. This model is more
pragmatic as it considers several factors that affect real-life decision-
making in practice.

PAGE 253
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Herbert A. Simon propounded the theory ‘bounded rationality’ which

states that the norm of rationality is bounded by information limitations
or inadequacy of information which deviates from the rationality to solve
the problems.
The major limitations that bound the managers are as follows:
(a) Uncertainties of environment: The future environment is full of
complexities and uncertainties that cannot be predicted with a high

i
degree of accuracy. Therefore, managers have to accommodate their
choice accordingly.
l h
e
(b) Conflicting Objectives: Generally organisations set multiple objectives
D
of
such as primary objective and secondary objectives to serve the
interest of organisation as well as to meet out social responsibility

ty
that may be conflicting to each other.

i
(c) Time Constraints: The concept of rationality is also bounded by
s
r
time constraints because it is time consuming to process the whole
e
v
steps involved in decision-making and the nature of complexity of
problems.
n i
, U
(d) Organisational Constraints: The philosophy of the organisation,
power structure, multiplicity of goals, existence of informal groups
L
and set of organisational plans may be bounded to make decisions
O
S
which are more practicable and feasible even by defying the norms

L /
of rationality.

O
3. Intuitive Decision Model:

C
E /
When managers reach a decision without conscious reasoning, it is
called intuitive decision. This is one of the most commonly used models

D C for decision making. As per Burke & Miller, 1999 survey, 89% of the

©D
managers sometimes used intuitive decisions and 59% used often. Intuitive
decisions are not based on gut feelings. These are backed by experience.

8.6 Decision Making and Ethics

Ethics generally refer to set of moral ideology, shaped by social norms,
cultural practices and religious influences that guide a human’s behaviour
about do’s and don’ts. In decision-making, only economic implication
is not involved but their value and ethical dimensions are found to be

254 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Decision Making

equally important. The ethical behaviour of a decision maker plays an Notes

important role in those managerial decisions that directly involve the
interests and objectives of society such as policies regarding recruitment,
selection, dismissal, wages and salary etc.
For example, a decision to switch over to a new technology should be
made by taking into account not only economic implication but also ethical
ones which require a high degree of honesty and integrity and depends
on individual personality and organisational environment.

h i
l
An individual or group can use the following three criteria to make such
decisions:
1. Utilitarian criterion: Under this criterion, managers evaluate the
D e
of
decisions and actions on the basis of their consequences. While
taking a decision, they ensure that it will produce the greatest good
for the large number of people.
i ty
r s
2. Criterion of right: This criterion holds that all people have fundamental

e
rights provided in the Constitution of India particularly the right to
v
n i
property, freedom of expression, knowledge, privacy etc. It protects
individuals from injury but hinders productivity and efficiency. So

, U
decision maker should respect and protect these rights.

O L
3. Criterion of justice: It is said that justice delayed is justice denied.
It urges upon decision maker to be fair, impartial and equitable

/ S
with all class of people especially less powerful and unrepresented
L
group of people while making decisions which ensure equitable
O
C
distribution of cost and benefits among parties involved in it.

E /
James Weber suggested the following guidelines to add ethical dimension

C
to decision making:

D
1. Formulating and implementing appropriate policy and code of ethics.

©D
2. Using a formal committee to ensure that code of ethics is observed
by the employees.
3. Including techniques of ethical and moral value in training and
development programmes.
Saul Gelleman suggested the following guidelines to encourage ethical
values in decision-making:
1. Provide clear guidelines for ethical behaviour.
2. Teach ethical guidelines and their importance.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 3. Refrain from grey areas, where there are questions about the ethics
of an action.
4. Set up auditing agency that checks illegal and unethical deeds.
5. Conduct frequent and unpredictable audits.
6. Punish trespassers in a meaningful way and make it public so that
it deters others.
7. Emphasise regularly that loyalty to the organisation does not exercise
improper behaviour or actions.
h i
IN-TEXT QUESTIONS
e l
D
27. Rational model assumes that decision-makers are perfect information

of
assimilators and handlers. (True/False)

ty
28. In non-rational model, decision makers can collect complete and

i
reliable information to achieve the objectives. 
s
(True/False)

e r
i v
29. Non-rational models are descriptive in nature. (True/False)

U n
30. Bounded rationality refers to limitations of thought, time and
information in making decisions. (True/False)

L ,
31. __________ model defines decision-maker as economic man.

O
32. Decision makers can make __________ decisions.
S
/
33. Rational models are __________.
L
O
34. Principle of bounded rationality is introduced by __________.

C
E /35. The principle of ‘bounded rationality’ states that decisions
are:

D C (a) Rational

©D
(b) Non-rational
(c) Both

256 PAGE
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 Decision Making

36. Personal decisions are: Notes

(a) Programmed decisions

(b) Non-programmed decisions
(c) None of these
37. Decisions based on pre-defined policies and rules are:
(a) Programmed decisions
(b) Non-programmed decisions
h i
(c) Both
e l
38. Bounded rationality in decision-making is introduced by:
D
of
(a) Herbert Simon

ty
(b) Peter Drucker
(c) Elton Mayo
s i
39. Programmed decisions relate to:
e r
(a) Structured situations
i v
(b) Unstructured situations
U n
,
40. The concept of bounded rationality is associated with:
L
O
(a) Economic man
(b) Administrative man
/ S
(c) Social man
O L
8.7 Summary / C
C E
D
Decision-making is an important managerial activity. Every manager has

©D
to make decision to solve problems and handle situations so that tasks
could be performed effectively Decision-making is not only a part of
planning but is an integral part of management process. Decisions are
made either by manager at individual level or by using the authority
delegated to him. Such decisions are known as individual decisions. As
against this, some decisions are made by two or more managers or group
of individuals who may be working in similar positions or may be in the
relationship of superior and subordinate. These decisions are known as
group decisions that are considered to be more qualitative and effective.

PAGE 257
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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes The process of decision making involves many stages related to non-
programmed decisions but for programmed decisions, certain prescribed
procedure, rules are to be used backed by managerial experience and
creativity. Strategic decisions are made by upper level managers whereas
operational decisions are made by lower level managers. In order to
understand the decision-making behaviour of manager, two important
models such as rational model and behaviour mode can be used. Of late, in
most modern organisation, the techniques of group decision making model

h
such brainstorming, Delphi technique, nominal group technique, and fish
i
e l
bowl techniques are used. Modern organisation gives due consideration to

D
ethical values in decision making for which a code of conduct is framed

of
and followed by managers.
CASE STUDY 1

i ty
Mr. Vikas is a customer in an India public sector bank. Mr. Vikas

r s
enjoys internet banking facility with the bank. One day he visited

e
the bank branch and requested the concerned clerk to make a fixed

v
n i
deposit by debiting his saving bank account. Instead of honouring
the request made by the Mr. Vikas, the clerk refused to do so and
U
said to Mr. Vikas; since you have internet banking, I could not help
,
L
you. Please make online fixed deposit. Again, Mr. Vikas requested by

O
saying that internet is not properly working due to weak signal, but

S
/
the clerk did not consider the problem and again repeated the same.

O L
Mr. Vikas made a complaint with the branch manager but in spite
of helping him, the branch manager said do whatever the concerned

/ C
clerk has said.

CE
Q1. What should Mr. Vikas do? Who is at fault? Suggest a solution.

D D CASE STUDY 2

© The Managing Director’s driver had been with the company for 25
years. He was very good at his job. One day he took the car home
after dropping the Managing Director late at night. While driving
back to his home, he met with an accident and kills a girl crossing
the road. Although it was not his mistake, the court punishes him.
The personnel officer in the company recommends dismissal of his
appointment.
Q1. What should the company do? Retain him or fire him?

258 PAGE
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Decision Making

8.8 Answers to In-Text Questions Notes

1. True
2. False
3. False
4. True
5. False
6. Strategic
h i
7. Lower
e l
8. Subjective
D
9. Conscious
of
ty
10. Continuous
11. True
s i
12. True
e r
i v
n
13. True
14. False

, U
L
15. True
16. Programmed

S O
17. Non-Programmed
L /
O
18. Objective
19. Non-recurring
/ C
20. Scope
C E
D
21. True

©D
22. True
23. True
24. Individual
25. Brainstroming
26. Group
27. True
28. False

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© Department of Distance & Continuing Education, Campus of Open Learning,
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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 29. True

30. True
31. Rational
32. Optimum
33. Normative
34. Herbert simon
35. (b) Non-rational
h i
36. (b) Non-programmed decisions
e l
37. (a) Programmed decisions
D
of
38. (a) Herbert simon

ty
39. (a) Structured situations
40. (b) Administrative man
s i
e r
i v
n
8.9 Self-Assessment Questions
U
,
1. What is a decision? What is meant by decision-making?
L
O
2. Decision-making involves choosing from among alternative solutions.
Comment.
/ S
L
3. Discuss the various steps involves in decision-making process.
O
C
4. What are the main features of rationality models of decision making?

E / What are their limitations?

D C 5. What are the various individual decision-making styles?

6. Managers cannot be rational decision-maker in real life situations.

©D
Discuss
7. What are programmed decisions?
8. Define the term ‘bounded rationality’.
9. Do you prefer to make decisions in a group or alone? What are the
main reasons for your preference?
10. Differential between individual decision and group decision.
11. Differential between strategic decision and operational decision.

260 PAGE
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 Decision Making

Classroom Exercise: Notes

u How did you take the decision of joining your present education
institution/organisation? Which model of decision-making suits
your case?
u Discuss, in groups of four, two decisions recently taken in your
institution. Critique the process.

8.10 References
h i
Robbins S. P., & Judge, T. A. (2017). Organisational Behaviour. 17th
e l
D
u
Ed. Pearson.
u Pareek, U., & Khanna, S. (2016). Understanding Organizational
of
ty
Behaviour. 4th Ed. Oxford. Mullins, L. J. (2010). Management &
Organisational Behaviour. 9th Ed. Prentice Hall.
s i
e r
8.11 Suggested Reading
i v
u

U n
Singh., K. (2015). Organisational Behaviour Text and Cases. 3rd Ed.
Vikas Publication.

L ,
S O
L /
C O
E /
D C
©D

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L E S S O N

9
Stress and Well
Being at Work
Dr. Jyotika Bahl
Assistant Professor
Gargi College

h i
University of Delhi

e l
Email-Id: [email protected]

D
of
STRUCTURE

ty
9.1 Learning Objectives
9.2 Introduction
s i
9.3 Understanding Stress
e r
9.4 Nature of Stress
i v
9.5 Sources of Stress
U n
9.6 Consequences of Stress
L ,
9.7 Management of Stress
S O
9.8 Well-Being
L /
O
9.9 Summary

C
/ Questions
9.10 Answers to In-Text Questions

E
9.11 Self-Assessment
C
D
9.12 References

D
9.13 Suggested Readings
©
9.1 Learning Objectives
At the end of this lesson, the student should be able to:
u Understand the concept of stress.
u Explain Different sources of stress.

262 PAGE
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 Stress and Well Being at Work

u Describe the need for devising strategies to deal with stress at Notes
organisation and individual level.
u Explain the concept and importance of well-being.
u Understand PERMA model.

9.2 Introduction

i
This lesson is designed to provide an understanding of the terms-
stress and well-being which assume importance due to challenges and
l h
opportunities being faced by employees due to multiple role playing, work
life imbalance, demanding nature of jobs, high competition, workforce
D e
of
diversity and flexible work schedules.

ty
Humans in the organisation can stay committed, loyal and engaged if

i
they experience optimum level of stress and are able to maintain a good

s
r
standard of well-being. Often management of stress and maintenance of

e
well-being are ignored by employees and the organisations. But the need
v
n i
for handling stress is increasing because of complexity of work, role
conflict, task demand, life trauma and so on. Most of the time, employees

, U
are unable to identify stress and get addicted to smoking or even drugs

O L
to provide the much needed relief from stress. Thus, timely identification
and management of stress is the need of the hour.

/ S
Well-being is increasingly deliberated on various platforms to promote
L
the idea of not only physical well-being but also emotional and mental
O
C
well-being. The concern for holistic human health has gained importance

/
as employees are burdened with tasks and forget to prioritise their well-
E
C
being over other unimportant tasks. The understanding and importance of

D
the concept of well-being is relevant to the organisations also as it helps

©D
increase productivity, reduce absenteeism and turnover. Organisations need
to promote the idea of well-being amongst the employees.

9.3 Understanding Stress

9.3.1 Understanding Stress and its Features

Stress is the pressure or tension people experience in life. Pressure can
be the result of constant demand exerted on the individual. For example,

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes an employee may have to face work deadlines, a working mother may be
required to maintain work life balance and a sales representative may be
under constant pressure to get new clients to retain in their job. Stress is
thus the natural and unavoidable feature of human life. But stress beyond
a particular limit may cause psychological and physiological concerns
which may affect the performance of employees at work. Thus, stress
is an experience of physiological and psychological imbalance within
a person. It is the body’s reaction to any change or demands made by
internal or external environment. Today, in the fast paced and highly
h i
competitive environment, stress is a natural consequence.
e l
D
According to Selye, “Stress is the non-specific response of the body to

of
any demand made upon it.”
RS Schuler described “Stress as a dynamic condition in which an

i ty
individual is confronted with an opportunity, constraint and demand

r s
related to what he desires and for which the output is perceived to be
both uncertain and important.”

v e
i
Stress is associated with opportunity, constraints and demand. Constraints
n
U
prevent us from achieving what we desire whereas demand is something

,
that we desire. For example, while confronting the annual performance

O L
evaluation at work, we encounter opportunities, constraints and demand.
Good performance will entail an opportunity for promotion and higher

/ S
salary, while poor performance may result in loss of job. Clearly a rational

O L
human will demand and even aspire for a promotion. But performance
at work is constrained by resources, time, politics and other conditions.

/ C
E
Stress is not necessarily bad in itself. It no doubt has a negative connotation

C
attached but stress may also have a positive value. For example, the front

D line workers during covid were exposed to risk of virus transmission,

©D
uneven and long working hours and uncertainty due to non-availability
of medical treatment. They were undergoing huge stress. But an optimum
amount of stress is necessary to motivate them to undertake breakthrough
research in medical treatment. Thus, stress is not always negative but has
positive value as well.
Stress is additive. New stressors may be added to previous stressors to
create a high level of stress. A single incident of stress does not have
the potential to create a feeling of stress or tension in an individual. In

264 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Stress and Well Being at Work

order to appreciate the stress level in a person, one needs to sum up his Notes
opportunity stress, constraint stress and demand stress.
From the discussion and understanding of stress, the following characteristics
of stress are evident.
1. Stress is an experience of physiological and psychological imbalance
within a person. Stress can have both positive and negative connotations.
Stress is positive if experienced within limits, for example the

i
pressure of deadline for completion of an assignment is important
for employees to motivate them to meet the finish line. Stress
l h
experienced by a deserving employee who has lost an opportunity of
promotion due to biased performance appraisal is negative. Potential
D e
of
Stress can become actual stress if there is uncertainty associated
with an important outcome.
2. Stress is additive and accumulates in the mind of a person.
i ty
r s
3. It is a dynamic condition associated with opportunity, constraints
and demand.
v e
n i
4. It is natural and unavoidable. Everybody experiences stress irrespective

U
of the hierarchy in the organisation, status or even personal conditions.

,
L
IN-TEXT QUESTIONS

O
1. Stress can cause both physiological and Psychological imbalance
S
in a person.

L /
O
(a) True (b) False

/ C
2. Stress is the specific response of the body to any demand.

CE
(a) True (b) False

D
3. Stress is the summation of:

© D(a) Constraints, demand and opportunity

(b) Anthropologic and physiological imbalance
(c) Ill-feelings
4. In case of over-stress, a person may experience:
(a) Anxiety (b) Dull health
(c) High performance

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 9.4 Nature of Stress

Stress affects us all. Physiologically, stress is the body’s reaction to
a perceived threat which requires either ‘fight or flight’ in a stressful
situation. The body is placed on a war footing because of the harmones
secreted in a stressful situation. This stage is referred to as alarm stage
with increased heart beat, high blood pressure, increased respiration etc.
This can prove helpful as well as sometimes unhelpful depending upon

i
the circumstances and situation but prolonged stress can prove fatal for
h
e l
individuals and it can also lead to emotional and physical breakdown.
Research studies in relation to stress and its relationship with different
D
of
factors like job etc. are not conclusive, comprehensive and complete.
Stress is of two types : Positive and Negative.

ty
Stress

s i
e r
v
Eustress Distress

n i
(Positive Stress) (Negative Stress)

U
Stress changes our body language and physical, emotional and mental
,
L
state while encountering different stimuli in our environment:

O
1. Eustress is positive stress accompanies achievement and joy in
S
/
physical activity and managerial job.

L
O
2. Distress is negative stress and is accompanied by negative state like

C
tension, helplessness, tension, headache, increased heart beat, blood

E / pressure etc.

D C Stress is caused by job related factors, it can be eustress (i.e. positive

stress) which is reflected in job performance but if an individual cannot

©D
take the tension and work pressure then it becomes distress. Stress does
not necessarily follow from a stressor, whether it is caused by a stressor
depends upon the personality of an individual, stress condition and the
reaction to it, some are affected necessarily and severely by the stressors
where as others are not affected this way.

266 PAGE
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 Stress and Well Being at Work

9.5 Sources of Stress Notes

The sources of stress can be categorised into two factors - organisational

stressors and individual stressors.

9.5.1 Organisational Stressors

The organisational stressors are discussed below:
1. Task Demands: They are the stressors associated with the job a
h i
person performs. Some jobs by nature are more stressful than others.
e l
D
For example, jobs of professionals like lawyers may need long

of
hours of research to prepare case arguments. In some unusual cases,
they may be required to refer to judgments of foreign courts or

ty
writings of renowned jurists. Doctors and surgeons may be required

i
to be available 24×7 for emergency cases and thus might need to
s
r
make extra effort to maintain work life balance as their jobs are
e
v
demanding. Similar holds true for defence personnel, airline staff,

n i
football/cricket coaches. Even factory workers or non-managerial

U
employees working in hazardous industries such as coal mines are

L ,
exposed to health hazards causing stress. The contractual nature
of skilled jobs may make the workers vulnerable for want of job
security.
S O
L /
2. Role Demands: The source of stress in organisational role includes

O
role ambiguity, role conflict, responsibility towards people and things

/ C
and other stressors. Role ambiguity includes lack of clarity about

E
work expectations, objectives, colleagues related to responsibilities

D C
of the job. For example, a new recruit at work might not fully
understand the responsibilities due to a poor orientation program

©D
or due to lack of training. Role conflict arises when workers are
exposed to conflicting job demands or required to do things which
they do not want to do. For example, an employee performs multiple
roles at the same time. A lady lawyer arguing cases in court, may
need to fulfil responsibilities as mother, wife, daughter and so on.
Responsibility towards things may also cause stress, for example, a
cashier in the bank might be entrusted with safe keeping and dealing
in cash. The mismatch of cash balance may be a cause of stress for
him. Similarly, a factory supervisor entrusted with keeping boilers

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes at correct temperature, to avoid hazardous substances escaping the

factory premises may feel stressed. Ensuring safety standards is
stressful during natural calamities.
3. Interpersonal Relations at Work: Maintaining interpersonal relations
with superiors, colleagues and subordinates is the prerequisite
to avoiding stress. But sometimes superiors, colleagues or even
subordinates are not cooperative, thereby increasing the chances
of stress. Bad interpersonal relations may be due to different

h i
orientations, philosophy, personality, interest and so on. Stressful

e l
interpersonal relations among superior-subordinate may be due to

D
task-oriented approach, autocratic leadership style or misunderstanding

of
of motivational needs of subordinates. Whatever may be the reason, it
has the effect of lowering the morale of the subordinates, increasing

ty
absenteeism from work and even job hopping. Colleagues may be

s i
unable to maintain cordial relations because of difference of interest,

e r
opinion, unhealthy competition, desire for achieving higher goals
in less time.
i v
U n
4. Organisation Structure and Climate: Stress can be generated
because of employee organisation mismatch. For example, if the

L ,
employee does not relate to the philosophy or objectives of the

O
organisation, he may find it difficult to adjust with the organisation.

/ S
Lack of belongingness, poor communication, scarce opportunity in

O L
decision making, practice of politics by organisation members are
other reasons for stress in employees.

/ C
5. Organisation Leadership: The leadership style can also be a cause

C E of stress in some cases. For example, an employee needing support

and guidance may not receive it as his leader shows no concern or
D
©D
compassion for him. The employee would naturally feel demotivated
and experience stress. Another employee, for instance, may want active
participation in decision-making but if disallowed an opportunity
to do so may experience stress. The mismatch of leadership style
with the requirements of the employee may be cause of concern
for the management.
6. Group Pressures: Employees may feel stressed when there is group
pressure to conform to the decided output or norms. For example, an
employee may be willing to produce more than the output decided

268 PAGE
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 Stress and Well Being at Work

by the group for getting promotion or a raise in pay but may be Notes
restricted by the group. This may cause stress as his personal goals
conflict with the group pressure. Acceptance and observance of group
norms may also cause stress as an employee may not personally
agree to the same. For example, during a strike, labourers may be
expected to abandon work but a labourer may feel the need to work
for his daily wage. Thus, group norms can be a source of tension
and stress among workers.

h i
9.5.2 Individual Stressors
e l
Some individual factors in relation to personal or professional life may
D
of
be a cause of stress amongst individuals. They are discussed as follows:

ty
1. Career Development: There are numerous stressors in relation to

i
career development including job security and status incongruity.
s
r
Individuals are keen on career development and prefer job security.

e
v
Situations like contractual nature of job or loss of job due to fear

i
of obsolescence of skills, redundancy or even early retirement may
n
U
cause potential tension for employees. Situations of status incongruity

,
which include under or over promotion or even frustration from

L
attainment of career ceiling may also cause stress.

O
S
2. Personality Profiles: Individuals possess different personalities -

/
Type A and Type B. While Type A experience a chronic sense of
L
O
urgency and a competitive drive to achieve more in life in less time,

C
Type B personality is totally opposite. Both personalities require a

E /
different environment to flourish and grow. Non-availability of such

C
opportunity may be a cause of stress and tension in the individual.

D
3. Life Change: Changes in life of an employee both professional and

©D
personal may be a source of stress. Different situations may have
varying impacts. For example, divorce may be considered more
traumatic for one whereas loss of livelihood may be more traumatic
for others. Different situations represent different intensity of Life
Change Units (LCU) in a person’s life. Negative events like trouble
with the boss, turnover or biased evaluation of performance and
positive events like marriage or change of house have a unique
value or LCU. Major negative changes may cause stress, depression

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes and even health issues. Thus it is essential that individuals handle
only that threshold of LCU which doesn’t set in and cause tension.
4. Life Trauma: It is an upheaval in an individual’s life that alters
his or her attitude, emotions or even behaviour. For example, if an
individual is experiencing a life change because of divorce, there
is certainly stress and potential ground for health issues to surface.
The individual also experiences emotional turmoil during the actual
divorce process and the court proceedings. This turmoil may be in
the form of life trauma and cause stress which may creep in the
h i
work space.
e l
D
Life trauma is similar to life change but a narrow term which has short

of
term focus. Major life traumas which may cause stress include marital
problems (like domestic violence, divorce, custody of children), family

i ty
difficulties and health problems. For example, an individual having

s
knee injury may have to restrict his physical activities, require giving
r
e
up his hobbies of playing sports and may feel stressed. Similarly, an

v
n i
individual being a victim of domestic violence or dowry demand may
be going through tough times which may affect concentration and affect
performance at work.
, U
O L
9.5.3 Environmental Stressors

/ S
O L
Environmental factors also influence the level of stress amongst the
employees in an organisation. Some environmental factors causing stress

/ C
are discussed below:

CE
1. Economic Uncertainty: Changes in business cycle create economic
uncertainty. When economy experiences a contracting trend, people

D D experience anxiety in relation to job security. Slowdown of business

©
may reduce profitability and have a spillover effect on job of
employees, salary and other benefits.
2. Political Uncertainty: A stable political environment would relatively
be less stressful in comparison to an unstable political environment.
3. Technological Uncertainty: Obsolescence of technology is another
reason for tension and stress as it requires the employee to upgrade
himself with the latest skills. New innovations in technology may
render the present skill and experience redundant. The evolution of

270 PAGE
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 Stress and Well Being at Work

technology, robotics and automation are a threat to employees and Notes

can be a cause for stress.
4. Terrorism: Terrorism witnessed at the global level is another major
source of stress. For example, employees in Israel have faced this
threat for long and have learnt to deal with it. The instances such
as 9/11, cyber threats and cyber-crime pose a challenge and risk
to health and well-being of employees.
IN-TEXT QUESTIONS

h i
5. Role ambiguity and role conflict are examples of:
e l
(a) Organizational stressors
D
of
(b) Individual stressors.
6. Life change and life trauma are same thing:
(a) True (b) False
i ty
r s
7. Employees demanding guidance and support from leaders should
get leaders having:
v e
(a) Concern for them
n i
(b) Concern for results

U
8. Which one of the following is not an individual stressor:
,
(a) Breakdown of marriage

O L
S
(b) Domestic violence
(c) Role demands
L /
O
(d) Cultural difference because of inter-caste marriage?
C
E / of Stress
9.6 Consequences

D C
©D
Consequences of Stress
Stress can manifest in number of ways, It can be broadly categorized into
the following three main groups:
1. Physiological Symptoms such as backache, headache, fatigue, loss
of appetite, eye strain, gastrointestinal problems and others.
2. Psychological symptoms such as boredom, anxiety, tension, procrastination,
and others.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 3. Behavioral Symptoms: Following are the several behavioral changes

that may indicate the presence of stress:
(a) Reduced Productivity: Psychological Stress symptoms could
impair cognitive function, decision-making abilities, and
creativity, all of which are vital for optimal work performance.
(b) Absenteeism: Work stress could increase absenteeism, as
employees may need time off to cope with physical or mental

i
health issues exacerbated by stress.
(c) Employee Turnover: Chronic stress in the workplace can
l h
e
contribute to higher rates of employee turnover. Employee
D
of
turnover could further lead to increased recruitment and
training costs for the organization.

ty
(d) Poor Morale and Engagement: When employees feel undervalued,

i
their commitment to their work and the organization may
s
r
diminish, leading to a disengaged workforce.
e
i v
(e) Negative Organizational Culture Employees may feel unsupported

U n
or undervalued, leading to a toxic work environment characterized
by low morale, high turnover, and decreased performance.

L ,
(f) Impact on Customer Satisfaction: Unsatisfied employees

O
could not work properly, this may indirectly impact customer

/ S
satisfaction.

O L
Though work stress can have far-reaching implications for organizational per-
formance, but optimum stress is important in the workplace. Optimum stress

/ C
may be achieved at work and is reflected in performance when job provides

C Eadequate challenge, but not too little or much pressure. It is important to

D
understand that optimum stress is different for different individuals and they

©D
can identify or even sense it and determine how much stress is functional
to operate in a productive manner. In case of optimum stress, there is high
motivation and high energy.

9.6.1 Consequences for an Individual

1. Physical Consequences: Stress has the ability to cause unnecessary
toxin in the body and harm the health and well-being of an individual.
Minor ailments like headache, backache, stomach or intestinal

272 PAGE
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 Stress and Well Being at Work

issues, skin disorders like acne or hives are common. Major health Notes
issues like heart disease or stroke can be harmful impacts of stress.
Depending on the perception of stress, an individual may experience
either minor or major health disorders.
2. Behaviour Consequences: An individual may experience behavioural
change because of stress. Stressed people may become aggressive
easily or may even be violent at times. In stressful situations, they
seek support of drugs or alcohol. They might even be addicted to
smoking. Studies show that people smoke in stressful circumstances
h i
and get so addicted to smoking that they smoke even in the absence
e l
of the stressful environment. Stress has the potential of making a
D
of
stressor prone to accidents and can even cause appetite disorder.
3. Psychological Consequences: Extreme stress may impact the mental

i ty
health and well- being of individuals. Stressed people may experience

s
depression, lack of sleep, over eating, loss of appetite, etc. They
r
e
may become restless in many situations and may even experience

v
panic attacks.

n i
U
IN-TEXT QUESTIONS

,
9. Which of the following is the change in behaviour due to stress:
L
O
(a) Addiction to drugs (b) Aggressive nature

/S
(c) Smoking (d) All of the above

L
10. The adverse effects of stress on the organization include:
O
C
(a) Reduced productivity (b) Heart disease

E /
(c) Loss of popularity

C
11. Which of the following is organizational consequence of stress:
D
© D(a) Loss of commitment (b) Depressive sleeping or eating
12. Stress of an individual effects mind, body and behaviour:
(a) True (b) False

9.6.2 Consequences for the Organisation

The degree of stress experienced by an employee has both direct and
indirect effect on the organisation. Stress for whatever reason caused,

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes organisational, individual or environmental, has a spillover effect on

the organisation. Following are the consequences an organisation will
encounter due to stress:
1. The performance of the employee will be affected due to stress.
The employee might not be able to maintain the standard level of
output and quality. This has the potential to affect the profitability
of the organisation.

i
2. There may be withdrawal symptoms in an individual who is

l h
witnessing stress. In such cases, there is high level of absenteeism

thereby ceasing to care about the organisation.

D e
and labour turnover. Employee may also withdraw psychologically,

of
3. The employee may be unwilling to put his best at work and might

ty
look for options for job change. His motivation, morale, commitment,

i
attitude and job satisfaction might suffer. Stressed people may be

s
r
prone to complain about unimportant matters.

v e
4. Decision making may suffer as stressed individuals lack the calm

n i
and patience to take the correct decision. They may be inclined to

U
make poor decisions.

,
5. Stress adversely affects communication and human relations at work.
L
S O of Stress
9.7 Management

L /
O
Since each one of us experiences stress in different aspects of life, it

C
becomes increasingly important to devise strategies to deal with stress
/
E
both at organisational and individual level. Some strategies to deal with

D C stress are discussed below:

© D 9.7.1 Strategies to Deal with Stress at Organisation Level

1. Organisation Role Clarity: Employees experience stress when they
are unaware of their role in the organisation. This could be due to
role conflict or role ambiguity. For example, if a project manager
is required to report to two bosses and if the instructions of the
bosses contradict each other, the manager will feel the need for
clarity. Thus, the organisation needs to focus on clarifying the roles
expected from employees. Role analysis is a technique that can be

274 PAGE
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Stress and Well Being at Work

used to analyse what the job entails and what are the expectations. Notes
Breaking the job into various components will help clarify the job
of the job holder for the entire system. This can help reduce stress
because of unrealistic expectations.
2. Job Redesign: Job can be a source of tension among the employees.
Designing the job properly by inserting appropriate tasks and
preparing work schedules can help ease stress and streamline the
work.

h i
l
3. Stress Reduction and Stress Management Programmes: Stress
reduction programmes identify organisational stressors and reduce
their effects by redesigning jobs, reallocating, workloads adding,
D e
of
job variety and improving supervisory skills. Stress management
programmes train employees and their work groups to manage the
stress symptoms effectively.
i ty
r s
4. Collateral Programmes (Personal Wellness): These programmes

e
are created for well-being of the employees. Organisations adopt
v
n i
stress management programmes, health promotion programmes,
career development programmes to manage stress.

, U
5. Supportive Organisational Climate: Much of the organisational stress

O L
is due to faulty policies and practices. Stress can be controlled by
creating a supportive organisational climate. Building a supportive

/ S
organisational climate is dependent on organisational leadership
L
rather than power and resources. Supportive organisational climate
O
C
requires participation of employees in decision making to provide

/
a sense of belongingness and attachment, which helps to reduce
E
C
stress.

D
6. Counselling: Counselling involves discussion of the problem or issue

©D
with a counsellor. It helps to release emotional burden and stress.
Talking to an expert about the pressures and tension helps in dealing
with stressful situation by obtaining expert advice. Counselling
assists in identifying stress, handling stress and recovering.

9.7.2 Strategies to Deal with Stress for Individuals

1. Relaxation: Dealing with stress requires adaptation and relaxation

is an effective way to adapt. People can relax in a variety of ways.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes They can take regular breaks from work and go on vacation. Vacation
may bring a change in attitude and behaviour towards different
aspects of life. Employees can also relax and take breaks while on
the job. For example, lunch break, tea breaks can enhance their
energy and reduce stress.
2. Time Management: One way to reduce stress is to manage time
well. Individuals can prepare a list of tasks/activities to be done

i
on a particular day and concentrate on important tasks. Some not

l h
so important tasks can be delegated to others. Prioritising helps

D
unnecessary pressure and burden to complete all tasks.e
in concentrating on important and relevant tasks and avoids the

of
3. Role Management: Individuals perform multiple roles on a daily basis.

ty
They should work towards avoiding situations of role overload, role

i
ambiguity and role conflict. For example, an individual should not
s
r
accept extra work when they are overburdened as it will adversely
e
v
affect their health and well-being. Individuals should also seek

n i
clarification in situations where there is confusion or ignorance with

, U
respect to work expectations. Also, individuals perform different roles
at one time. For example, for a doctor who is a father, son, dean
L
of his department, colleague for other doctors, there is a possibility
O
S
of role conflict. Managing different roles will help reduce the risk

L /
of stress and tension.

O
4. Meditation: Meditation can help reduce stress and restore inner

C
E / balance. It requires quiet, concentrated inner thought to rest the body
physically and emotionally. It helps to calm in stressful situations

D C temporarily.

©D
5. Support Group: Any individual has primary and secondary groups.
Primary groups are those with whom a person relates very closely,
like family and close friends. Primary groups provide support during
stress. Individuals can share their worries, stress and feelings with
them. Support groups have the potential to boost the morale of the
person and keep them going.

276 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Stress and Well Being at Work

IN-TEXT QUESTIONS Notes

13. Which of the following is a collateral programme to deal with

stress:
(a) Career development programme
(b) Health promotion programme
(c) Stress management
(d) All of the above

h i
14. Which of the following needs to be managed to reduce stressful
e l
D
situations:

of
(a) Role ambiguity (b) Role conflict
(c) Role overload (d) All of the above

i
15. Taking power naps or breaks in between work can help reduce
ty
stress:
r s
(a) True (b) False
v e
n i
16. __________helps in reducing stress by talking to an expert.
(a) Counselling
U
(b) Job redesign

,
9.8 Well-Being
O L
/ S
O L
9.8.1 Understanding Well-Being

/ C
E
According to Martin Seligman, Well-Being is more than just feeling good

C
and happy, it reflects the amount of flourishing and optimal psychosocial

D
functioning. He suggested the PERMA model of well-being which consists

©D
of five pillars - positive emotion, engagement, relationship, meaning and
accomplishment.
PERMA Model
Positive emotion It implies the ability to connect to happiness, stay
optimistic and view past, present and future from a
constructive perspective.
Engaged An individual is engaged when he is fully absorbed
and participates actively in activities which result in
experiencing mastery, focus and joy.

PAGE 277
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Relationships Relationships and connections are crucial to life.

Relationships and bonds based on love, intimacy, emotional,
physical bonds are important elements for well-being.
Meaning It is the sense of purpose and direction in one’s life.
Accomplishment It is the sense of satisfaction and fulfilment as a result
of achieving one’s goal.
An employee possessing a good standard of well-being at work is likely
to be more creative, loyal and provide better customer satisfaction as
compared to an employee having a low standard of well-being. Also, a
h i
e
good standard of well-being would ensure high productivity, long term
l
D
organisational success and employee engagement. Employee well-being

of
is directly linked to organisational performance. Organisations should
make constructive effort so that employees achieve a good standard of

ty
well-being.

s i
Well-being is not restricted to individual level factors but extends to

e r
organisational and societal factors. In addition to occupational hazards,

i v
the absence of work (whether unemployment or under-employment) is a

U n
major stressor and cause of ill-health. In some cases, such as the current
economic slowdown post pandemic, unemployment stress is involuntary.

L ,
Waddell and Burton define well-being as “the subjective state of being

O
happy, healthy, contented, comfortable and satisfied in one’s life.”

/ S
It includes physical, material, social, emotional (happiness) and development

O L
dimensions. Well-being at work is also influenced by mental and physical
health, job security, work organisation, engagement at work, work life

/ C
benefits and wages. Different authors have recognised different determinants
of well-being. Some determinants are work related factors, life style and

C Epersonality.

D IN-TEXT QUESTIONS

©D
17. Which of the following is not one of the five pillars in the
PERMA model:
(a) Positive feeling (b) Engagement
(c) Relationship (d) Meaning
(e) Accomplishment
18. Relationships include:
(a) Connections

278 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Stress and Well Being at Work

Notes
(b) Quality relations based on love, intimacy, emotional bonds
(c) Both (a) and (b)
(d) None of the above
19. The study of well-being requires study of:
(a) Individual factors
(b) Organizational factors
(c) Societal factors
h i
(d) All of them
e l
D
9.9 Summary
of
i ty
This chapter focuses on employee health, well-being and managing stress.

s
Understanding the importance of well-being, health and stress can help
r
e
in organisational success, increasing productivity and performance of

v
n i
employees. At the same time, it reduces chances of absenteeism, turnover
and accidents at workplace. It also helps employees enhance their loyalty,
U
commitment and satisfaction. Healthy and stress-free employees can be
,
L
an asset for organisations. Thus, maintaining optimum level of stress and

O
good standard of well-being should be one of the goals of an organisation.

/ S
L
9.10 Answers to In-Text Questions
O
1. (a) True
/ C
2. (b) False
C E
D
3. (a) Constraint, demand and opportunity

©D
4. (a) Anxiety
5. (a) Organizational stressors
6. (b) False
7. (a) Concern for them
8. (c) Role demands
9. (d) All of the above
10. (a) Reduced Productivity
11. (a) Loss of commitment
PAGE 279
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 12. (a) True

13. (d) All of the above
14. (d) All of the above
15. (a) True
16. (a) Counselling
17. (a) Positive feeling

i
18. (c) Both (a) and (b)
19. (d) All of them
l h
9.11 Self-Assessment Questions D e
of
1. Sam has been facing the issue of role ambiguity and is reporting to

i ty
two bosses. Sometimes he gets contradictory instructions and orders

r s
to execute. In this situation he is unable to decide what to do, he

e
feels pressured and is even thinking of quitting the job. Help him

v
n i
identify the source of stress and suggest ways in which he can deal
with stress and workplace pressure.

, U
2. Some stress is indispensable and necessary to make the job challenging

L
and keep the motivation high. Comment on the statement.

O
S
3. Discuss the organisational sources of stress. Can the organisation

/
reduce the possibility of stress among the employees? Discuss.
L
O
4. The study of Well-Being is gaining significance today. Discuss the

/ C
concept of well-being and its scope.

CE
Match the following:

D
1. Eustress (a) Lack of concentration

D
2. Distress (b) Negative stress

© 3.
4.
Mental stress
Emotional stress
(c)
(d)
Positive stress
Demands of the job
5. Organizational stress (e) Sad/depressed
Answers:
1. (c) 2. (b) 3. (a) 4. (e) 5. (d)

280 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
Stress and Well Being at Work

9.12 References Notes

u Marko Divjak (2021), How to enhance the Employee Well-Being at

work, International Journal of Management, 10, 109-114.
u Robbins, S.P, Organisation Behaviour, Pearson Education.
u Schulte, P & Vainio H (2010), Well-being at work - overview and
perspective, Scand Journal of Work Environ Health, 36(5), 422-429.
u Singh and Chhabra, Organisation Theory and Behaviour, Dhanpat

h i
Rai & Co.

e l
9.13 Suggested Readings D
Robbins, S.P, Organisation Behaviour, Pearson Education. of
ty
u

s i
Singh and Chhabra, Organisation Theory and Behaviour, Dhanpat
Rai & Co.

e r
i v
U n
L ,
S O
L /
C O
E /
D C
©D

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© Department of Distance & Continuing Education, Campus of Open Learning,
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L E S S O N

10
Organization Structure
and Design
Dr. Nidhi Kesari
Assistant Professor
Shaheed Sukhdev College of Business Studies

h i
University of Delhi

e l
Email-Id: [email protected]

D
of
STRUCTURE

ty
10.1 Learning Objectives
10.2 Organisation
s i
10.3 Elements of Organisation Structure
e r
10.4 Mechanistic and Organic Structures
i v
10.5 Factors affecting Organisation Structure
U n
10.6 Organisational Designs
L ,
10.7 Organisation Formats/Theories
S O
10.8 Summary
L /
O
10.9 Answers to In-Text Questions

/ C
10.10 Self-Assessment Questions
10.11 References
C E
D
10.12 Suggested Reading

©D
10.1 Learning Objectives
At the end of this lesson, the student should be able to:
u Define organisational structure and its aims.
u Understand key elements of organisational designs.
u Demonstrate understanding of types of organisational structure.
u Evaluate different organisational structure.

282 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organization Structure and Design

Notes
10.2 Organisation
Organising is a network of relationships (authority-responsibility structure)
amongst people working at all levels in all departments. It defines
relationships between jobs and people. The focus is more on position
than people.
The task is divided into units, people in each unit (departments) are assigned

i
specific tasks and their relationship is defined to maximise organisational
welfare and individual goals. The relationship is both vertical and horizontal.
l h
As vertical relationships, authority-responsibility structure at different levels
is defined and as horizontal relationships, authority-responsibility structure
D e
of
in different departments at same levels is defined.

ty
Organisation structure shows division of work and how different functions

i
or activities are linked; to some extent it also shows specialisation of

s
r
work. It also indicates the organisation’s hierarchy and authority structure
and shows its reporting relationships.— Robert H. Miles
v e
n i
“Organisation structure is the formal pattern of interactions and coordination

U
designed by management to link the tasks of individuals and groups in

,
achieving organisational goals.”— Kathryn M. Bartol and David C. Martin

L
S O
10.3 Elements of Organisation Structure

L /
Organisation structure has the following elements:

C O
1. Objectives and Plans: Organisation structure is designed to meet

E /
its plans and objectives. It shapes the activities to its objectives.

D C
2. Specialisation: All activities are grouped on the basis of similarity
of features. This forms departments which is the foundation of

©D
organisation structure.
3. Standardisation: Standardisation means uniformity and consistency.
It provides stability to organisation structure. Management frames
policies, procedures and programmes for departments to work in
unions.
4. Co-ordination: Units should contribute towards the common goal.
Coordination ensures that individual goals contribute to organisational
goals.

PAGE 283
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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 5. Centralisation and decentralisation: If decision-making power rests

with top managers, it is a centralised structure and if decisions are
made by middle and lower-level managers, it is a decentralised
structure.
6. Environment: Organisation structure is situational in nature. It
changes with changes in environmental factors—economic, social,
technological, political etc.

i
7. Staffing: The jobs and departments are staffed with people and
authority-responsibility relationships are established.
l h
10.4 Mechanistic and Organic Structures D e
of
Organisation structures are designed based on activities, and relationships
amongst people working in those departments.
i ty
r s
There are two kinds of organisation structures:

v e
1. Mechanistic or Classical Organisation Structure: This is a formal

n i
structure with defined jobs, policies, schedules, chain of command,

U
authority-responsibility relationships and vertical communication.

L ,
The focus is on organisational and individual goals with little or
no interaction with the environment.

S O
2. Organic or Behavioural Organisation Structure: These structures

L /
are adaptive to environment with participative style of decision-

O
making. Communication is both vertical and horizontal and control

/ C
comes from within.

C E Sl.
No.
Mechanistic Structure Organic Structure

D 1. It is pyramid shaped with authority It is flat shaped with authority

©D
centralised at the top. decentralised at lower levels of
management.
2. It follows hierarchy of command. It does not follow hierarchy of
command.
3. There is narrow span of control. There is wide span of control.
4. There is intense division of la- Work is divided into general tasks
bour and work is divided into with little or no specialisation.
specialised tasks.

284 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organization Structure and Design

Sl. Mechanistic Structure Organic Structure Notes

No.
5. People consider individual goals There is synchronisation of indi-
different from organisational goals. vidual goals with organisational
goals.
6. Tasks are performed according to Tasks are assigned according to
position. People at lower levels capabilities/skills and not positions.
perform comparatively simpler
tasks.

h i
7. Work is performed as per di- Tasks are flexible; they change
rections. according to situations.
e l
8. Communication is hierarchical; Communication is a network. It
D
of
orders, instructions and commands flows as suggestions, advises and
flow from top to bottom. information rather than orders.
9. Subordinates obey rules and There is commitment to goals
i ty
are loyal to superiors and the and no just obedience.

r s
e
organisation.

i v
10. Control is exercised from the top. There is self-control.

U n
11. Appropriate for organisations More suitable for organisations
operating in stable environment. operating in dynamic environment.

L ,
10.5 Factors Affecting Organisation Structure

S O
L /
Organisation structure is affected by the following factors:

O
1. Strategy: Strategy determines a course of action. It co-ordinates

C
/
resources towards a common objective.

C E
When a strategy is framed, organisation structure is designed to
suit the strategy. The structure is, thus, a means to the end (the
D
objective to be achieved through strategy.)

©D
The structure is, thus, designed according to need of the strategy
and, therefore, follows it. Strategy is pre-requisite to organisation
structure.
2. Technology: Technology also affects organisation structure. Joan
Woodward in research of 100 firms in London analysed three types
of technology:
For mass production technology, mechanistic structure is appropriate,
while in case of continuous production or small scale production

PAGE 285
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes technology, organic structure is more appropriate. This is because

mass production technologies involve higher degree of standardisation
and specialisation than continuous or unit production technologies.
3. People: People are important organisational asset and greatly affect
the design of organisation. Both superiors and subordinates, their
behaviour patterns, thinking, needs and motivators affect the
organisation structure. Different people have different needs and
organisation structure is designed to meet the needs of maximum
number of people.
h i
e l
4. Tasks: Tasks are the activities that transform plans into reality.
Various task characteristics are:
D
of
(i) Skill Variety: It is the extent to which creativity, skills and
talent are used to do a task.

i ty
(ii) Task Identity: It determines whether to produce a product

r s
in whole or parts. Where a product is produced as a whole,

e
it has greater task identity.
v
n i
(iii) Task Significance: The importance of task that affects the

U
well-being of people determines significance of the task.

L ,
(iv) Autonomy: Whether or not an individual plans the task on
his own determines autonomy of the task.

S O
(v) Feedback: It enables a person to know effectiveness of his

L /
performance from superiors, peers or subordinates. People

C O who have quick feedback perform better.

E /
Organisation structure should be designed in a way that people perform
jobs with high task characteristics. This provides satisfaction and

D C reduces turnover and absenteeism.

©D
5. Decisions: Who makes decisions how information flows in the
organisation also affect the organisation structure. Centralised
decision-making supports mechanistic structures, while decentralised
decision-making supports organic or behavioural structures.
6. Informal Organisation: Social and cultural values, religious beliefs,
personal likes and dislikes form informal groups. They cannot
be overlooked by management. “Where the organisation design
specifically attempts to frustrate part of the informal organisation,
harmful conflict may result.”— P.J. Stonich

286 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 Organization Structure and Design

Where informal relationships are strong organic structure is appropriate. Notes

Mechanistic structure is preferred where formal relationships are
strong.
7. Size: Job specialisation, standardisation and decentralisation increase
with increase in size of the firms.
With increase in size of the organisation, it moves from organic to
formal or mechanistic structure.
8. Environment: Organisation structure must respond to environmental
h i
opportunities and satisfy the external parties such as customers,
suppliers, labour unions etc. In a stable environment, closed or
e l
D
of
mechanistic structure is appropriate. In changing and dynamic
environment organic structure is more appropriate.

ty
9. Managerial Perceptions: If managers perceive subordinates as active,
dynamic and talented individual, they prefer organic structure. If
s i
r
they perceive them as non-enterprising, mechanistic structure is
e
v
appropriate.
Sl.
No.
Factors Mechanistic Structure

U ni Organic Structure

1. Strategy

L ,
Organisations do not
diversify in new areas.
Organisations diversify
the operations. They are

S O They are stable. dynamic.

2. Technology

L / Mass-production
technology.
Continuous or unit
production technology.
3. People

C O People are unskilled and People are skilled and

4.
E /
Tasks
inexperienced.
Low task characteristics.
experienced.
High task characteristics.
5.

D C Decisions Centralised decision-

making.
Decentralised decision-
making.

©D
6. Informal Informal relationships Informal relationships
Groups are ignored. are recognised.
7. Size Large. Small.
8. Environment Stable environment. Changing and dynamic
environment.
9. Managerial Managers have Managers have
Perception low opinion about high opinion about
subordinates. subordinates.

PAGE 287
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes IN-TEXT QUESTIONS

1. Organisation structure is the informal pattern of interactions.
(True/False)
2. Informal relationships are ignored in Mechanistic Structure.
(True/False)
3. Skill variety determines whether to produce a product in whole
or parts. (True/False)

h i
l
4. In mechanistic structure, Tasks are performed according to
_________.

D e
of
5. Organic structures have __________ task characteristics.
6. Decision making is centralized in ___________ structures.

i ty
10.6 Organizational Designs
r s
v e
i
Organizational design provides the structure to business processes and

U n
the framework for an organization to deliver its core qualities. Choice
of the structure is dependent on the following elements:

L ,
(a) Departmentalization: It defines the basis of grouping the jobs.

O
(b) Work Specialization: It describes the degree of sub-division of
S
/
activities into jobs.
L
O
(c) Span of Control: It defines the number of subordinates which a

C
/
manager can effectively and efficiently supervise.

CE
(d) Chain of Command: It describes to whom the subordinates will

D
report either individually or in group.

© D (e) Formalisation: It defines the degree of rules and regulations at

different levels of management which guide the employees.
(f) Centralization and Decentralization: It describes the degree of
the authority to take a decision.

288 PAGE
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 Organization Structure and Design

10.7 Organisation Formats/Theories Notes

The theories of organisation can be classified into two broad categories;

The classical theory of organisation defines relationship between jobs
activities, and
Modern theory of organisation defines human relationships with job
structure.
I. Classical Theory of Organisation
h i
1. Line Organisation
e l
D
of
2. Line and Staff Organisation
3. Functional Organisation
II. Modern Theory of Organisation
i ty
1. Project Organisation
r s
v e
i
2. Matrix Organisation
3. Networking Organisation
U n
10.7.1 Line Organisation
L ,
S O
L /
In line organisation, decisions are taken by superiors and communicated
to subordinates. Information flows from top to bottom in a line. Managers

C O
in line authority are known as line managers. They respect the scalar

/
chain. The authority, orders, commands, and instructions flow from top
E
C
to bottom and responsibility flows from bottom to top.

D
©D

PAGE 289
© Department of Distance & Continuing Education, Campus of Open Learning,
School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Flow of authority in line appears as follows :

Owner of a company (shareholders)
Elect
Board of Directors
Appoints
Managing Directors

Responsibility
i
Authority

l h
General Managers

Middle Level Managers

D e
of
ty
Supervisors

s i
Workers

e r
i v
Figure 10.1: Line Authority
Merits of Line Organisation:
U n
,
1. Simple: This is a simple form of organisation. Every person knows
L
O
his superiors and subordinates.

/ S
2. Goal-oriented: Orders, instructions, work groups, responsibilities,

O L
accountability – all relate to objectives.
3. Economical: It is an economical form of structure as people focus

/ C
on how best they can contribute to objectives.

CE
4. Order: Clearly defined authority and responsibility bring order in

D D tasks.
5. Control: Control is maintained by single superior.
© 6. Speed: Most of the decisions are taken by superiors. Decision-making
is less time-consuming.
7. Clarity: There is clear division of authority, responsibility and
accountability.
8. Develops Managers: It increases potential to take independent
decisions. Managers arrive at practical/optimum decisions.

290 PAGE
© Department of Distance & Continuing Education, Campus of Open Learning,
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 Organization Structure and Design

9. Effective Communication: Communication links are not by-passed Notes

in the scalar chain. This reduces filtration, avoids rumours and
information remains authentic.
Limitations of Line Organisation:
1. Inflexible: Focus is on hierarchical relationships. This makes it an
inflexible structure.
2. Ignores social values: Social values are important complement to
formal relationships.
h i
3. Concentration of Authority: Since authority vests at the top, it
e l
results in one-way downward communication.
D
4. Lack of Expert Advice: Specialised services of experts are not
of
ty
available.

s
5. Overburden: Top executives are burdened with work and do noti
e r
spend as much time on strategic matters as they should.

i v
6. Coordination: Absence of horizontal relationships, open communica-

U n
tion and participative decision-making makes coordination

,
difficult.
Suitability:
O L
/ S
This structure is suitable for small organisations where nature of work

O L
is simple, number of levels and subordinates is less, communication is
vertical, control is direct and centralised at the top.

C
10.7.2 Line and /Staff Organisation
C E
D
©D
Organisation which has both line and staff positions is called line and
staff organisation. While line authority exercises direct authority, staff
authority assists the line positions. Line authority is directly related to
work and staff is indirectly related to it.
In the organisation chart, line authority is shown by simple lines and
staff authority by broken lines.

PAGE 291
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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Board of Directors

Managing Directors

General Manager General Manager General Manager

Production Finance Sales

h i
e l
Manager Manager
DManager

of
R & D Personnel Purchase

ty
Line Authority

Staff Authority

s i
e r
Figure 10.2: Line and Staff Organisation
Merits of Line and Staff Organisation:
i v
U n
1. Reduces Workload: Line executives have access to staff assistance.

,
They can concentrate on strategic issues.

L
2. Overall View of the Problem: Staff managers take a multi-dimensional
O
S
view and relate it to the organisation as a whole.

L /
3. Quick and Better Decisions: Since all decisions cannot be taken

O
by line managers, staff specialists help in taking quick and better

C
/
decisions.

CE
4. Reservation of Authority: While staff managers assists line managers,
the decisions are implemented by line subordinates.

D D 5. Competent Staff: New and complex problems develop the skills of

© staff specialists.
6. Specialisation: Both line and staff promote creative thinking. While
line executives contribute directly to goals, staff specialists provide
support to these goals.
Limitations of Line and Staff Organisation:
1. Complex: Line and staff relationships are complex. There is no
clarity between line and staff authority.

292 PAGE
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 Organization Structure and Design

2. Line and Staff Conflict: Though staff is an advisory body that Notes
assists line managers, conflicts arise due to their approach towards
the problems.
3. Coordination: Unclear roles create problems of coordination between
line and staff activities.
4. Frustration: The ‘staff experts’ is a recommendatory body whose
advise may or may not be accepted by line executives.
5. Centralisation: Since ultimate decision-making authority vests with
h i
line managers, the organisation tends to be centralised.
e l
D
Suitability:

of
This form of organisation is suitable for large organisations where complex
activities require expert advice. It provides professional advice to line

ty
managers without violating their line authority.

s i
10.7.3 Functional Organisation
e r
i v
U n
As organizations grow in size, new departments are added and activities
become specialised. Specialised managers focus on departmental activities.
This given rise to functional organization.
L ,
O
The figure shows functional authority of finance department.

/ S
Board of Directors

O L
Managing Directors

/ C
E
General Manager General Manager General Manager General Manager

C
Production Marketing Finance Human Resource

D
©D
Line Authority
Manager Manager Manager
Consumer Intermediate Producer Staff (Functional) Authority
Goods Goods Goods

Assistant
Manager

Supervisor

Worker

Figure 10.3: Functional Organisation

(Functional Authority in Line Organisation)

PAGE 293
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School of Open Learning, University of Delhi
 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Manager of consumer goods receives orders not only from General
Manager, Production (line manager) but also from General Managers of
finance department.
Merits of Functional Organisation:
1. Specialisation: Every functional head has authority over all departments
with respect to his functional area. He specialises in his area of
work.

i
2. Economical: It avoids duplication of resources as they are centralised
h
at the decision-making point.
e l
D
3. Reduces Burden of Functional Heads: Every functional head looks

of
after activities of his department only. This structure promotes
clarity.

i ty
4. Co-ordination: Work related to one set of activities is under control

r s
of one head. The focus is on total view of the organisation.

e
5. Uniformity of Operations: There is uniformity in work and complete
v
i
clarity regarding line of command and communication process.
n
U
6. Control: Functional heads control their areas of expertise.

,
L
Limitations of Functional Organisation:

O
1. Violation of Unity of Command: Unity of command is violated

S
L /
as one subordinate is accountable to more than one boss.
2. Co-ordination: When functional heads focus on departmental

C O
objectives, co-ordination becomes a problem.

E /
3. Complex Relationships: There is wide gap between persons who

D C make the decisions and those who implement them. This complicates
relationships between superiors and subordinates.

©D
4. Centralisation: With widening gap between superiors and subordinates,
functional organisation becomes centralised. People at lower levels
go to top positions every time there is a problem.
5. Delayed Decisions: Since every decision flows from the top, decision-
making is delayed.

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 Organization Structure and Design

6. Inflexible: Changes cannot be made at the levels where decisions Notes

are implemented. It hampers creativity of people at the operative
level.
Suitability:
The functional structure is appropriate for small organisations which have
limited levels or limited products.
IN-TEXT QUESTIONS
7. In line organisation, decisions are taken by superiors and
h i
communicated to subordinates. (True/False)
e l
8. Organisation which has both line and staff positions is called
D
of
functional organisation. (True/False)

ty
9. Specialised managers focus on departmental activities. In functional
organisations.(True/False)

s i
r
10. Line structure is suitable for _________ organisations.
e
i v
11. Line and staff structure is suitable for __________ organisations.

n
12. Functional structure is appropriate for small organisations.
U
10.7.4 Project Organisation
L ,
S O
/
Project organisation is structured to accomplish specific projects within

O L
specified constraints of time, money and quality. A bridge, dam or fly-over
are constructed as project organisations. Once the objective is formed, work

/ C
force is gathered, and authority-responsibility relationships are defined.

C E
(a) Project organisation is “the gathering of the best available talent to

D
accomplish a specific and complex undertaking within time, cost

©D
and/or quality parameters, followed by the disbanding of the team
upon completion of the undertaking.”— Richard M. Hodgetts

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes
Board of Directors

Managing Directors

General Manager General Manager General Manager General Manager

Production Sales Finance Personnel

h i
Project A
Consumer
Goods
Producer
Goods
e l
D
of
Figure 10.4: Project Organisation Structure
Project manager of project A is also General manager of production

ty
department. So long as the project continues, project manager discharges

s i
dual functions of project manager and functional manager. Once the

e r
project is over, he concentrates on the functional department.
Merits of Project Organisation:
i v
U n
1. Focus: Project manager focuses on one project only, thus ensuring

,
its successful completion.

L
2. Control: Project manager defines responsibilities of the group members
O
S
and facilitates feedback and control.

L /
3. Unity of Command: There is unity of command as group members

O
get instructions from project manager only.

/ C
4. Fast Decisions: There are no superiors and subordinates connected

C E by the chain of command. This speeds up the decision-making

process.
D
©D
5. Flexible Structure: It is a flexible structure that forms and dissolves
as the work requires.
6. Adaptive to Environment: Organisation structure changes to
environmental demands as it does not have a permanent structure.
Limitations of Project Organisation:
1. Job Security: People who join from outside lose their jobs once the
project is completed. There is job insecurity for project members.

296 PAGE
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 Organization Structure and Design

2. Complex Relationships: Project manager and group members do not Notes

have defined relationships with respect to their interdependence.
3. Small-sized Organisations: Project managers of small organisations
do not have formal authority over group members. They use personal
skills to get the work done. People with low informal leadership
qualities cannot be successful project managers.

i
10.7.5 Matrix Organisation

l h
e
Matrix organisation is a hybrid structure; a combination of functional
and project structure. Members of the project are also accountable to the
D
of
functional heads. They have dual accountability in this structure:
1. They are accountable to functional heads in the vertical chain of
command. Functional head is their line superior.
i ty
r
2. They are accountable to project manager through horizontal lines in
s
e
the matrix organisation chart. Project manager has project authority
v
over them.
n i
U
“A matrix structure is a type of departmentalisation that superimposes

functional structure”.
L ,
a horizontal set of divisional reporting relationships onto a hierarchical

S O
/
Managing Director

L
CO
Matrix GM GM GM GM

/
Bosses Production Finance Marketing Personnel

C E
Project
Manager

D
A

© D Project
Manager
B

Project
Manager
C

Line Authority
Project Authority

Figure 10.5: Matrix Organisation

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Merits of Matrix Organisation:

1. Decentralisation: All decisions are taken by functional managers or
project managers. Decisions are taken at the point of reference.
2. Multi-disciplinary Co-operation: People from different departments
work together and create healthy work environment.
3. Co-ordination: People from different departments work as a team
under project manager.
4. Motivation: Employees are not placed in hierarchy but placed
h i
according to skills. This boosts their morale.
e l
D
5. Control: Since project manager concentrates on single project, there

of
is control over project activities.
6. Efficient Utilisation of Resources: There is optimum utilisation of

i ty
resources as they are shared by functional and project managers.
Limitations of Matrix Organisation:
r s
v e
1. Dual Accountability: Since employees are accountable to functional

n i
manager and project manager, unity of command is violated.

, U
2. Inter-personal Relationships: Working together on a project promotes
personal relationships at the cost of project objective.

O L
3. Co-ordination: Both vertical (line manager) and horizontal (project

/ S
manager) co-ordination is generally not achieved simultaneously.

O L
4. Inter-project Conflict: If there are multiple projects, project managers
complete for resources with functional departments which may

/ C
develop conflict amongst project managers.

C ESuitability:

D Matrix organisation is suitable for undertakings which carry:

©D
u Manufacturing activities like aerospace, chemicals, electronics etc.;
u Service activities like banking, insurance, retailing etc., and
u Professional activities like designing advertisement campaign,
accounting etc.

298 PAGE
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 Organization Structure and Design

Notes
10.7.6 Networking Organisation
This structure is a combination of geographic, functional and product
elements. It provides economies of scale at the global level and satisfies
local customer demands. The structure links subsidiaries of a company
spread worldwide. Some subsidiaries specialise in manufacturing while
others in sales. All of them are, however, linked with headquarters. Some
are closely controlled by headquarters while others are more autonomous.

h i
l
It is “a temporary network of independent companies — suppliers,
customers, even erstwhile rivals — linked by information technology
to share skills, costs and access to one another’s markets. It will have
D e
of
neither central office nor organisation chart. It will have no hierarchy,
no vertical integration.”

i ty
s
Sub-Unit B
Research and
Designing
e r
Production
i v
n
Operation
Sub-Unit A
Planning
Production
, U
Sub-Unit C
Production
Operation

O L
S
Parent

L /Company

CO
Sub-Unit F Sub-Unit D

E /
Distribution Accounting

D C Sub-Unit E

D
Transportation

© Figure 10.6
The units coordinate product, functional and geographic information
spread across different areas. They are represented as nodes. At the same
time, each product unit or geographical unit has independent structure
that best suits its operations.
The term ‘virtual organisation’ describes the network of companies.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Virtual organisation is “organisation using networks linking people, assets

and ideas to create and distribute products and services without being
limited by traditional organisational boundaries or physical location”—
Laudon & Laudon
Vertical boundaries separate employees into levels and hierarchies. They
are removed through cross-hierarchical teams and participative decision-
making. This flattens the organisation structure.

i
Horizontal boundaries are created by work specialisation and departmentation.

l h
They are removed through cross-functional teams around work processes.

e
External boundaries separate the organisation from customers, suppliers
D
of
and other stakeholders. They are removed through strategic alliances with
suppliers or value-chain management.

ty
Merits of Network Organisation:

s i
1. Wide Scope: It is wide in scope and links subsidiaries across the
world with the head office.
e r
i v
2. Flexible Structure: Organisation culture cuts across traditional

n
boundaries and shares information and resources amongst subsidiaries.

U
,
3. Low Cost of Governance: In traditional forms of organisations,

O L
governance involves high price as goods and services are bought in
the open market. Electronic networks reduce the cost of governance.

/ S
4. Synergy: It provides synergy by entering into temporary alliances.
L
Some companies specialise in production while others in marketing.
O
C
Their combined strength results in higher output than sum of their
/ individual output (synergy).

D CE 5. Utilisation of Best Capabilities: It reduces overhead expenses of the

principal organisation as every unit and sub-unit perform specialised

© D operations.
6. Free from Human Sentiments: It requires comparatively less
employees as work is done through e-networks. It is free from
human sentiments, emotions, needs and perceptions.
7. Temporary Structure: It is a temporary structure as principal
organisation is free to select sub-units. It adds or deletes sub-units
in its network depending upon need.

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 Organization Structure and Design

8. Boon for Small Firms: It is an inter-organisational network where Notes

small firms perform subsidiary operations for the large company
like supply of inputs, research, design, distribution etc. Small firms
get business for survival.
9. Motivation: As there are no vertical and horizontal boundaries,
there are minimum status and rank differentials. People work with
enthusiasm, motivated by the structural environment.

i
Limitations of Network Organisation:
1. Degree of Virtualisation: Findings suggest that increased use of
l h
electronic networks is associated with less virtualisation, not more.
Employees get demotivated due to poor performance of some of
D e
of
the sub-units.

ty
2. Problem of Co-ordination: Head office does not have control over

i
most of the sub-units. Co-ordination is perhaps, the biggest problem

s
r
for the central organisation.

v e
3. Unstable Structure: The structure changes with changing subsidiaries

n i
and new relationships develop every time there is change in subsidiary.

, U
4. Lack of Personal Relationships: There is absence of social interaction
as people do not exchange ideas and experiences.

O L
5. Mutually Related Operations: Since the operations are mutually

S
related, delay by one sub-unit delays the entire project.
/
O L
6. Problem of Reliability: A networking structure is successful only
if business partners are reliable.

/ C
7. Lack of Close Control: Close control over manufacturing and
E
marketing operations by the central organisation is missing.
C
D
IN-TEXT QUESTIONS

©D
13. Project organisation is structured to accomplish specific projects
within specified constraints of time, money, and quality.
(True/False)
14. Matrix organisation is a hybrid structure; a combination of
Functional and Line structure. (True/False)
15. Networking structure is a combination of geographic, functional
and product elements. (True/False)

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes 16. ___________ structure results in disbanding of the team upon

completion of the undertaking.
17. A matrix structure superimposes a horizontal set of divisional
reporting relationships onto a hierarchical functional structure.
18. Networking organization is also called ___________ organisation.

CASE STUDY
Nucor pioneered the mini-mill concept, built new plants from
h i
scratch, promoted from within, and remained a domestic company.

e
Management practices of Nucor have been successful and effectivel
D
for more than five decades despite. Nucors lack of knowledge about

of
how to structure the company:

ty
The organizational structure at Nucor is flat to an extreme. There

i
are three layers of decentralized management separating the CEO

s
r
from factory workers. With Nucor’s structure, headquarters receives

e
weekly performance reports from each operating division which
v
n i
is then circulated to other divisions. As Nucor continued to grow
through, CEO is found of difficult to maintain this simple structure.

, U
The operating principles of Nucor allow pushing decision-making

O L
authority down into the organization, thereby reducing the need for
staff organizations and middle management levels, with only four

/ S
management layers, with key decisions for the daily operations made

O L
by the line managers. The management hierarchy is composed of
four layers.

/ C
In 2006, Nucor added another layer of management creating a new

C E layer of five executive vice-presidents; Nucor is surprisingly lean

D
and simple.

©D
Nucor employs 22 employees at its corporate headquarters. The main
channel is its direct sales team. The company promotes its offering
through its website, social media pages. Nucor’s customer relationship
is primarily of a self-service nature. These indicate that management
still answers their phone calls and e-mails and the company has no
corporate jet.

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 Organization Structure and Design

Toyota Company, even comparatively, looks lean but appear fat as Notes
compared to Nucor. “You are going to get at least 10 layers at Toyota
before you get to the president,” says a former Toyota engineer.
Questions:
1. How does the Nucor case illustrate limitations of the simple
organizational structure?
2. Do you think other organizations should attempt to replicate
Nucor’s structure?
h i
3. Why do you think other organizations have developed much
e l
more complex structure than Nucor?
D
of
4. Generally organization structures tend to reflect the view of the
CEO. As more “new blood” comes into Nucor, do you think

i ty
the structure will begin to look like that of other organizations?
5. What are the pros and cons of Nucor’s structure?
r s
v e
6. What are the most important elements of Nucor’s organizational
structure?
n i
10.8 Summary
, U
O L
S
Organizational Structure is necessary for running a successful business

/
because it improves workflow and efficiency, promotes communication,
L
O
identifies company needs, and aligns employees with company goals.

C
Organizational structure provides leverage and can help enhance operating

E /
performance. The organization structure is the system which describes the

C
organizational hierarchy in terms of different functions, roles, responsibilities,

D
supervision etc. It demonstrates different concerns including different

©D
roles of the employees, job descriptions, job functions, decision-making
authorities, reporting structure, allocation of tasks in the department,
individuals, project team, branch etc.
Organizational Design encompasses restructuring and restructuring roles,
hierarchy level, terms and conditions as per business or organizational
needs. Organizational structure positively affects employees’ behaviour as
to job satisfaction and productivity. In fact, organizational designs have
global affect in terms of culture.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes
10.9 Answers to In-Text Questions

1. False
2. True
3. False
4. Position

i
5. High
6. Mechanistic
l h
7. True
D e
of
8. False
9. True
10. Small
i ty
11. Big
r s
12. Small
v e
13. True
n i
14. False
, U
15. True

O L
S
16. Project
17. Matrix
L /
O
18. Virtual

C
E / Self-Assessment Questions
10.10

D C 1. What do you mean by organizational structure and design?

© D 2. What is purpose of designing organizational structure?

3. What is the importance of organizational structure in business?
4. What are the key elements that define organizational structure?
5. What is matrix organization? What are the main characteristics of
a matrix organization?
6. How does globalization affect organizational structure?

304 PAGE
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 Organization Structure and Design

7. XYZ Limited is manufacturing chemicals and textiles. What type Notes

of organisational structure would suit the requirements of such an
organization?
8. What is meant by functional structure of organization?
9. Draw the organizational structure of your educational institution and
list the internal and external factors that could affect the structure.
10. Assume that your educational institution is in a location that has
experienced a significant growth in families with children who are
h i
eligible to attend your institution. Note the factors that the director
may need to consider to ensure that they have the most appropriate
e l
D
of
structure in place.

ty
10.11 References

s i
r
u Robbins S. P. & Judge, T. A. (2017). Organisational Behaviour. 17th
Ed. Pearson.
v e
u

n i
Pareek, U. & Khanna, S. (2016). Understanding Organizational

U
Behaviour. 4th Ed. Oxford.
u
Ed. Printice Hall.
L ,
Mullins, L. J. (2010). Management & Organisational Behaviour. 9th

S O
10.12 Suggested Reading
L /
C O
Singh., K. (2015). Organisational Behaviour Text and Cases. 3rd Ed.
/
u

E
Vikas Publication.

D C
©D

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 Glossary
Adjourning: The final stage of group development that involves termination of the group.
Agreeableness: A person’s capacity to collaborate with others.
Attitudes: Mental states of readiness for need arousal.
Authoritarianism: People who have negative perceptions toward their jobs and workers.
Boundaryless Organization: Is a newly found concept of creating an organization free
h i
from structural and cultural barriers.
e l
D
Bounded Rationality: The view that people are bounded in their decision-making

of
capabilities, including access to limited information, limited information processing, and
tendency toward satisfying rather than maximising when making choices.

i ty
Brainstorming: A freewheel, face-to-face meeting where group members are not allowed

r s
to criticised but are encouraged to express freely, generate as many as possible, and build
on the ideas of others.
v e
n i
Classical Conditioning: It is a behavioural procedure in which a biologically potent

, U
stimulus is paired with a previously neutral stimulus.
Collateral Programmes are those programmes which are created for the well-being of
the employees.
O L
/ S
Conflict: A process in which one party perceives that his or her interests are being opposed

O L
or negatively affected by another party.
Conscientiousness: A measure of an individual’s reliability.

/ C
E
Decision-Making: The consensus process of making choices among alternatives with the

C
intention of moving towards some desired state of affairs.

D
Delphi Technique: A decision-making method which does not require the physical presence

©D
of group members.
Divisional Structure: An organisational structure made up of separate, semiautonomous
units or divisions.
Egalitarianism is a belief in human equality especially with respect to social, political,
and economic affairs.
Emotional Intelligence: The ability to accurately perceive, evaluate, express and regulate
emotions and feelings.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Emotional Stability: A person’s capacity to cope with stress.

Ethics: The study of moral principles or values that determine whether
actions are right or wrong and outcomes are good or bad.
Extinction: In a learning situation, the decline in the response rate because
of non-reinforcement.
Extraversion: An individual’s level of ease in interpersonal connections.
Extrovert: Individuals who are reality-oriented, sociable individuals and
performers.
h i
e
Formal Group: The organization’s structure, with designed work l
assignments establishing tasks.
D
of
Forming Stage: The first stage of group development in which people join
the group and then define the group’s purpose, structure and leadership.

i ty
Functional Structure: An organisational design that groups together

r
similar or related occupational specialists.
s
v e
Group-shift: Changing the decision as per the group.

n i
Group: A collection of individuals working in face-to-face relationships

U
to share information and resources for a task to be achieved.

,
L
Group Cohesiveness: The tendency of a group to remain together.

O
Group Decision-Making: Where the members or subordinates may share

S
L /
the authority of decision making with the chief executive.
Groupthink: When a group exerts extensive pressure on an individual

C O
to align his or her opinion with others opinions.

E /
Heredity: Characteristics of a person’s personality that are passed down

D C from parents to their children.

Ideal-Self: “Way an individual would like to be”.

©D Informal Group: Group that appear in response to the need for social
contact.
Introvert: Individuals who are self-assured and driven by their own
distinct thoughts.
Job redesign involves designing the job by inserting appropriate tasks
and preparing work schedules.

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 Glossary

Learning: The process by which a relatively enduring change in behaviour Notes

occurs as a result of practice.
Life change is changes in the life of an employee both professional and
personal.
Life trauma is an upheaval in an individual’s life that alters his or her
attitude, emotions or even behaviour.
Locus of Control: Belief about the results of an action.
Looking-Glass-Self: “An individual’s impression of how others see his
h i
attributes or feel about him”.
e l
Machiavellianism: An individual’s tendency to manipulate others to gain
D
of
and achieve power.
Matrix Structure: A structure in which specialists from different functional

i ty
departments are assigned to work on projects led by a project manager.

r s
Mechanistic Structure: It is based on the arrangement of activities and
rigid and tightly controlled.
v e
n i
Negative Reinforcement: Reinforcement that strengthens a response

U
because the response removes some painful or unpleasant stimulus or
enables the organism to avoid it.

L ,
Network Structure: Linking of numerous, separate organisations to

S O
optimise their interaction in order to accomplish a common, overall goals.

L /
Nominal Group Techniques: A variation of brainstorming consisting

O
of three stages in which Participants (1) silently and independently

C
/
documents their ideas, (2) collectively describe these ideas to the other

C E
group members without critique, and then (3) silently and independently
evaluate the ideas presented.
D
©D
Norming Stage: The third stage of group development where resolving
of differences takes place.
Norms: The informal rules and shared expectations that groups establish
to regulate the behaviour of their members.
Openness to Experience: A person’s creativity and interests.
Operant Conditioning: Learning that occurs as a consequence of behaviour.

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 MBAFT 6101 ORGANIZATIONAL BEHAVIOUR

Notes Organic Structure: Is a highly adaptive form that is as loose and flexible
structure as it allows changing rapidly operating in volatile and technology
driven environments.
Organisational Structure: The way in which the inter-related groups of
an organisation are constructed.
Perception filter is the process of letting some information in while
keeping out the rest.
Performing Stage: The fourth stage of the group development when the
h i
group is fully functional and works on group tasks.
e l
D
Positive Reinforcement: Action that increases the likelihood of a particular

of
behaviour.
Power Distance: Describes how different countries handle the fact that

ty
people are unequal.

s i
Punishment: An uncomfortable consequence for a particular behaviour

e r
response or the removal of a desirable reinforcer because of a particular
behaviour response.
i v
n
Real-Self: “What others show you in terms of your self-image”.
U
L ,
Risk Taking: Willingness to accept risks.
Salient cues are those cues that are somehow so striking that they stand
out.
S O
L /
Selective Attention is the “process of paying attention to some, but not

O
all, physical and social cues”.

C
E /
Self-Esteem: A sense of liking or disliking oneself.

C
Self-Image: “What an individual perceives about himself”.

D Self-Monitoring: Capacity to adjust to the demands of the situation.

©D
Socialization: Process by which a newborn acquires a wide variety of
behaviour from the extremely vast range of behavioural potentialities that
are available to him at birth.
Spaghetti Structure: Lack of structure of organisation in which no
employee had a desk or office of their own.
Stereotypes vs. Prejudice: Stereotypes are unfounded assumptions about
a social group that lack any basis in fact. Stereotypes are assumptions
made about a social group that can be either good or negative, conscious

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 Glossary

or unconscious. Prejudice is a strong unreasonable feeling of not liking Notes

or trusting somebody/something, especially when it is based on his/her/
its race, religion, or sex.
Storming Stage: The second stage of group development in which
conflicts start arising.
Strategy: Strategy is a deliberate search for a plan of action that will
develop a business’s competitive advantage and compound it.
Stress is a dynamic condition in which an individual is confronted with
h i
an opportunity, constraint and demand related to what they desire and
for which the output is perceived to be both uncertain and important.
e l
D
of
Team: A group of individuals working in face-to-face relationship for
a common goal, having collective accountability for the outcome of its

ty
efforts.

s i
Team Structure: In which the entire organisation is made up of work
teams.
e r
i v
Values: The conscious, affective desires of wants of people that guide

U n
their behaviour. Basic guidelines and beliefs that a decision maker uses
when confronted with a situation requiring choice.

L ,
Well Being is more than just feeling good and happy, it reflects the

O
amount of flourishing and optimal psychosocial functioning.

S
L /
C O
E /
D C
©D

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6101-Organizational Behaviour [MBAFT-S1-DU] Cover Sep24.pdf - September 8, 2024