Chapter 1

Scope of OB

Organizational behavior (OB) is a field of study that explores how individuals, groups, and structures
within an organization interact and influence one another. The scope of organizational behavior
includes:

Jobs:

Job satisfaction and engagement: Understanding how employees perceive and feel about their jobs
and how this affects their performance and well-being.

Job design: Examining how the way jobs are structured and designed can impact employee
motivation and productivity.

Work Absenteeism:

Absenteeism refers to the habitual and unscheduled absence of employees from work. OB explores
the causes of absenteeism, such as job dissatisfaction, health issues, or personal problems, and how
organizations can address and reduce absenteeism.

Employment Turnover:

Employee turnover refers to the rate at which employees leave an organization. OB investigates the
reasons behind turnover, such as job dissatisfaction, poor management, and lack of growth
opportunities, and seeks ways to reduce turnover and retain valuable employees.

Productivity:

Productivity in an organization is a critical measure of efficiency and effectiveness. OB studies factors

such as motivation, job design, leadership, and team dynamics that influence individual and group
productivity. It also explores methods to improve overall organizational productivity.

Human Performance:

Human performance is a broad area that includes various aspects of individual and group
performance in the workplace. OB examines factors like motivation, skills, teamwork, and leadership
that impact human performance and suggests strategies to enhance it.

Management:

OB is closely connected to management as it provides insights into how to lead and manage people
effectively. It delves into topics like leadership styles, decision-making, communication, and conflict
resolution. Understanding OB principles can help managers lead teams more efficiently and create a
positive work environment.

Each of these focal points in organizational behaviour is interconnected, and addressing them
effectively can lead to improved organizational performance, job satisfaction, and employee well-
being. Management students who study OB gain valuable knowledge and skills that can be applied to
real-world situations in order to enhance the functioning and success of organizations.

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Challenges and opportunities in OB
Responding to Economic Pressures:

Challenge: Organizations must navigate economic challenges such as economic downturns, cost-
cutting pressures, and financial instability.

Opportunity: Adapting to economic pressures can lead to increased efficiency and cost savings
through strategic management and restructuring.

Responding to Globalization:

Challenge: Organizations operate in a global context, which includes complexities like international
markets, cultural diversity, and cross-border competition.

Opportunity: Globalization presents opportunities for expanding markets, accessing talent, and
diversifying resources.

Increased Foreign Assignments:

Challenge: Managing employees on international assignments requires addressing cultural, legal, and
logistical challenges.

Opportunity: International assignments can lead to skill development, cultural awareness, and a
global perspective for employees.

Working with People from Different Cultures:

Challenge: Interacting with individuals from diverse cultural backgrounds can lead to communication
and understanding challenges.

Opportunity: Cross-cultural collaboration can foster creativity, innovation, and a broader perspective
on problem-solving.

Overseeing Movement of Jobs to Countries with Low-Cost Labor:

Challenge: Offshoring and outsourcing can create job displacement and raise ethical concerns.

Opportunity: Cost-effective operations can improve profitability and competitiveness, benefiting

both organizations and consumers.

Managing Workforce Diversity:

Challenge: Managing a diverse workforce with varying backgrounds, perspectives, and needs can be
complex.

Opportunity: Diversity can lead to increased creativity, better decision-making, and a broader talent
pool.

Improving Customer Service:

Challenge: Meeting customer expectations and delivering high-quality service is an ongoing

challenge.

Opportunity: Exceptional customer service can lead to customer loyalty, positive reviews, and
increased business.

Improving People Skills:

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Challenge: Developing and enhancing interpersonal and communication skills among employees and
leaders is vital.

Opportunity: Improved people skills lead to better teamwork, conflict resolution, and leadership
effectiveness.

Stimulating Innovation and Change:

Challenge: Encouraging and managing innovation and change within organizations can be met with
resistance.

Opportunity: Innovation and change can drive competitiveness, adaptability, and growth.

Coping with Temporariness:

Challenge: The nature of work is increasingly temporary, with the rise of gig work and short-term
projects.

Opportunity: Temporariness can offer flexibility, access to specialized skills, and adaptability for
organizations.

Working in Networked Organizations:

Challenge: Networked organizations may face issues related to communication, collaboration, and
coordination among teams and individuals.

Opportunity: Networked structures can enable agile problem-solving and knowledge sharing.

Helping Employees Balance Work-Life Conflicts:

Challenge: Balancing work and personal life is a source of stress for employees.

Opportunity: Organizations that support work-life balance can enhance employee well-being and
motivation.

Creating a Positive Work Environment (positive organizational scholarship):

Challenge: Building and maintaining a positive work environment requires continuous effort and
cultural alignment.

Opportunity: Positive work environments foster employee engagement, satisfaction, and

productivity.

Improving Ethical Behavior:

Challenge: Ensuring ethical behavior throughout an organization and addressing ethical dilemmas is
an ongoing challenge.

Opportunity: Ethical organizations build trust, reputation, and strong relationships with stakeholders.

Implications in OB for managers

The implications of organizational behavior (OB) for managers are significant. OB provides valuable
insights and tools to help managers effectively lead and manage their teams and organizations. Here
are some specific implications for managers based on the points you've mentioned:

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Insights to Improve People Skills:

Managers can use OB principles to gain a deeper understanding of human behavior, motivation, and
communication. This knowledge can help them improve their interpersonal and leadership skills,
leading to more effective and productive teams.

Valuing Workforce Diversity:

OB emphasizes the importance of diversity and inclusion in the workplace. Managers can leverage
OB insights to create an inclusive work environment where diverse perspectives are valued, leading
to increased creativity and better decision-making.

Empowering People and Creating a Positive Work Environment:

OB encourages a participative management style, where employees are empowered to contribute

their ideas and take ownership of their work. This can lead to a more positive and engaging work
environment, improving employee satisfaction and performance.

Dealing with Labor Shortages:

In the face of labor shortages, OB can help managers attract and retain talent by understanding the
factors that motivate employees and by creating an appealing workplace culture. Strategies such as
flexible work arrangements and skill development can be employed to address labor shortages.

Coping in a World of Temporariness:

OB provides insights into how to manage in an environment characterized by temporary work

arrangements and changing job structures. Managers can adapt their leadership and team
management strategies to accommodate the changing nature of work.

Creating an Ethically Healthy Work Environment:

OB highlights the importance of ethical behavior in organizations. Managers can use OB knowledge
to promote ethical decision-making, transparency, and a strong ethical culture within their
organizations, which can enhance reputation and trust.

In summary, organizational behavior equips managers with a deeper understanding of human

behavior in the workplace and provides tools and strategies to create more inclusive, engaging, and
ethically sound work environments. By applying OB principles, managers can better lead their teams
and organizations to achieve their goals and overcome various challenges.

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Basic ob Model

Chp 1 end

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Chapter 2
Attitudes and job satisfaction

What is Attitude

In simple terms, an attitude is how you feel and what you think about something or someone. It's
your overall opinion or judgment, whether it's positive (liking or favoring) or negative (disliking or
disfavoring). Attitudes are the combination of what you believe, how you feel, and what you intend
to do about a particular thing or situation. They can influence your behavior and actions.

The three components of an attitude

1.Cognitive Component: This is the thinking or belief segment of an attitude. It involves what you
believe or know about a particular object, person, situation, or concept. For example, if you believe
that teamwork is essential for a successful project, that's the cognitive component of your attitude.

2.Affective Component: This is the emotional or feeling segment of an attitude. It pertains to how
you feel about the object of your attitude. Using the teamwork example, if you feel happy, excited,
and motivated when working with a team, that's the affective component of your attitude.

3.Behaviuoral Component: This involves your intentions or actions regarding the object of your
attitude. It's about how you intend to behave or act toward someone or something. In the case of
teamwork, if you actively participate in team activities and support your team members, that's the
behavioural component of your attitude.

Major Job Attitudes

The major job attitudes that individuals can hold within an organization include:

Job Satisfaction:

Job satisfaction is a positive feeling about one's job resulting from an evaluation of its characteristics.
It represents how content or happy an employee is with their job. Job satisfaction is influenced by
various factors such as the work environment, compensation, job security, and relationships with
colleagues and supervisors.

Job Involvement:

Job involvement reflects the degree of psychological identification an employee has with their job. It
signifies how important the individual perceives their job in relation to their self-worth. Employees
with high job involvement typically view their job as a significant part of their identity.

Psychological Empowerment:

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Psychological empowerment refers to an individual's belief in the extent of influence they have over
their job. It encompasses feelings of competence, job meaningfulness, and autonomy. When
employees feel psychologically empowered, they are more likely to take ownership of their work and
feel motivated to make a positive impact.

Organizational Commitment:

Organizational commitment represents the extent to which employees identify with a particular
organization and its goals while wishing to maintain their membership in the organization. It has
three dimensions:

Affective Commitment: Emotional attachment to the organization.

Continuance Commitment: Staying with the organization due to the perceived economic value.

Normative Commitment: Staying with the organization because of moral or ethical obligations.

Organizational commitment can impact employee performance and retention, with new employees
often being more affected by it.

Perceived Organizational Support (POS):

POS is the degree to which employees believe the organization values their contributions and cares
about their well-being. It tends to be higher when employees perceive fair rewards, involvement in
decision-making, and supportive supervisors. High POS is associated with increased organizational
citizenship behaviors (OCBs) and job performance.

Employee Engagement:

Employee engagement reflects the degree of involvement, satisfaction with, and enthusiasm for
one's job. Engaged employees are deeply connected to their work and the organization. They are
passionate about what they do and are committed to contributing to the company's success.

Job Satisfaction and job performance. Are satisfied workers more

productive?

The outcomes of job satisfaction can have a significant impact on both employees and organizations.
Here's a breakdown of these outcomes:

Job Performance:

Satisfied workers tend to be more productive, and more productive workers are often more satisfied.
It's a two-way relationship where job satisfaction and performance can reinforce each other. When
employees are happy with their jobs, they are often more motivated and engaged, leading to better
job performance.

Organizational Citizenship Behaviors (OCB):

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Job satisfaction can influence OCB, which refers to employees going beyond their regular job duties
to help the organization. Satisfied employees are more likely to engage in OCB because they have a
positive perception of their workplace and are more willing to contribute beyond their basic job
requirements.

Customer Satisfaction:

When frontline employees are satisfied with their jobs, they are more likely to provide better
customer service, resulting in increased customer satisfaction and loyalty. Happy employees tend to
create a positive experience for customers.

Absenteeism:

Satisfied employees are less likely to miss work. Job satisfaction can act as a motivator for employees
to show up consistently and be punctual.

Turnover:

Job satisfaction is inversely related to turnover. Satisfied employees are less likely to quit their jobs.
This is particularly important for organizations as high turnover rates can be costly and disruptive.

Workplace Deviance:

Dissatisfied workers are more likely to engage in negative behaviors like unionizing, substance abuse,
stealing, tardiness, or withdrawal. Unhappy employees may exhibit deviant behaviors as a response
to their dissatisfaction.

Moderating Variables of attitude-behaviour

Moderating variables are factors that can influence or alter the strength and direction of the
relationship between attitudes and behavior. In the context of the attitude-behavior relationship,
some of the most powerful moderating variables include:

Importance of the Attitude:

The level of importance an individual assigns to their attitude can significantly impact whether that
attitude translates into behavior. If the attitude is of high personal importance, individuals are more
likely to act in accordance with it.

Correspondence to Behavior:

The extent to which an attitude aligns with the behavior in question is crucial. When the attitude
directly corresponds to the behavior, the likelihood of the attitude influencing the behavior is higher.

Accessibility:

How easily an attitude can be retrieved from memory or brought to mind is another important factor.
Attitudes that are readily accessible are more likely to guide behavior because they are top of mind.

Existence of Social Pressures:

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Social pressures and external influences, such as peer expectations or societal norms, can moderate
the relationship between attitude and behavior. When strong social pressures exist, individuals may
conform to those pressures even if their personal attitudes differ.

Personal and Direct Experience of the Attitude:

Personal experiences can play a significant role. If an individual has had direct and relevant
experiences that support their attitude, they are more likely to act in accordance with that attitude.

Employees response to dissatisfaction

Employees' responses to job dissatisfaction can take various forms, and these responses are
categorized into four main types:

Exit:

Exit refers to employees taking actions that are directed toward leaving the organization. This can
include resigning from their current job, seeking new employment opportunities, or simply
disengaging from their current role. Employees choosing the "exit" response typically believe that
the best solution to their dissatisfaction is to leave the organization.

Voice:

Voice involves employees taking active and constructive steps to improve their work conditions or
express their concerns. They may voice their dissatisfaction by providing feedback, making
suggestions for improvement, or participating in efforts to bring about positive change within the
organization. Employees who choose the "voice" response believe in working to make things better
rather than simply leaving.

Neglect:

Neglect is when employees allow their dissatisfaction to fester and take no proactive action to
address the issues. They may become apathetic or disengaged, allowing their performance and
commitment to deteriorate. Neglecting their duties or responsibilities is a passive response to
dissatisfaction.

Loyalty:

Loyalty involves employees passively waiting for conditions to improve. They may believe that their
current dissatisfaction is temporary and that things will get better on their own. During this time,
they remain committed to the organization and do not actively seek alternatives.

End chp 2

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Chapter 3 Personality

Personality

➢According to Gordon Allport personality is “the dynamic organization within the individual

of those psychophysical systems that determine his unique adjustments to his

environment.”

➢ It is the sum total of ways in which an individual reacts to and interacts with others.

➢We most often describe it in terms of the measurable traits a person exhibits.

The Myers-Briggs Type Indicator (MBTI)

The Myers-Briggs Type Indicator (MBTI) is a widely-used psychological assessment tool designed to
categorize and measure personality preferences. It is a 100-question personality test that asks people
how they usually feel or act in particular situations.

▪ Respondents are classified as

▪Extraverted (E) versus Introverted (I):

Extraverted individuals are outgoing, sociable, and assertive. Introverts are quiet and shy.

▪Sensing (S) versus Intuitive (N):

Sensing types are practical and prefer routine and order. They focus on details. Intuitives rely on
unconscious processes and look at the “big picture.”

▪Thinking (T) versus Feeling (F):

Thinking types use reason and logic to handle problems. Feeling types rely on their personal values
and emotions.

▪Judging (J) versus Perceiving (P):

Judging types want control and prefer their world to be ordered and structured. Perceiving types are
flexible and spontaneous.

▪These classifications together describe 16 personality types, identifying every person by one

trait from each of the four pairs.

▪For example, Introverted/Intuitive/Thinking/Judging people (INTJs) are visionaries with original

minds and great drive. They are skeptical, critical, independent, determined, and often

stubborn.

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▪ ESTJs are organizers. They are realistic, logical, analytical, and decisive and have a natural

head for business or mechanics.

▪The ENTP type is a conceptualizer, innovative, individualistic, versatile, and attracted to

entrepreneurial ideas. This person tends to be resourceful in solving challenging problems but

may neglect routine assignments.

Big Five model of personality. How are they relevant to OB?

The Big Five personality traits, which are a widely accepted model for understanding and categorizing
personality. Here's a brief explanation of each of the Big Five personality traits:

1.Extraversion: This dimension measures an individual's comfort level with relationships and social
interactions. Extraverts tend to be outgoing, gregarious, assertive, and sociable. They enjoy being
around people and are often seen as talkative and friendly. In contrast, introverts are more reserved,
quiet, and may find social interactions draining.

2.Agreeableness: Agreeableness reflects a person's tendency to cooperate with and defer to others.
Highly agreeable individuals are warm, cooperative, and trusting. They are often easy to get along
with and value harmony in relationships. People low in agreeableness may be more competitive,
assertive, and less concerned with maintaining harmony in interactions.

3.Conscientiousness: Conscientiousness measures a person's level of reliability and organization.

Highly conscientious individuals are responsible, organized, dependable, and persistent in their work
and commitments. They are known for their attention to detail. Those with low conscientiousness
may struggle with disorganization, unreliability, and difficulty staying focused.

4.Emotional Stability (or Neuroticism): This dimension assesses an individual's ability to manage
stress and emotional reactions. People with high emotional stability tend to be calm, self-confident,
and secure in stressful situations. On the other hand, individuals with high neuroticism scores may be
prone to anxiety, nervousness, depression, and insecurity, and they may have difficulty coping with
stress.

5.Openness to Experience: Openness to experience gauges a person's range of interests and

willingness to embrace novelty. Highly open individuals are creative, curious, and often enjoy
exploring new ideas and experiences. They may have a love for the arts, be open to unconventional
thinking, and seek out new challenges. Those low in openness tend to be more traditional, preferring
familiar routines and avoiding novelty.

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End of Chp 3

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Chp 4- Values

Values
Values are beliefs about what is right, good, and desirable in life. These values guide choices,
behavior, and decisions. It has judgemental element. Values have both content and intensity
attributes.

The content attribute says a mode of conduct or end-state of existence is important.

The intensity attribute specifies how important it is.

First approach
Milton Rokeach Value Survey (RVS):
The survey consists of two sets of values, each containing 18 individual values:

Types of Values
Terminal Values: These are the ultimate goals or end states that individuals aspire to achieve. The
survey presents 18 different terminal values, and individuals are asked to rank these values in terms
of their personal importance.

Instrumental Values: These are the means or behaviors individuals consider important for achieving
their terminal values. Again, the survey presents 18 instrumental values, and individuals are asked to
rank these values based on their personal priorities.

No. Terminal Value No. Instrumental Value

1 Family Security 1 Ambitious

2 Freedom 2 Broad-Minded

3 True Friendship 3 Capable

4 Inner Harmony 4 Cheerful

5 A Sense of Belonging 5 Clean

6 Happiness 6 Courageous

7 A Comfortable Life 7 Forgiving

8 Pleasure 8 Helpful

9 Equality 9 Honest

10 Wisdom 10 Imaginative

11 Social Recognition 11 Independent

12 Mature Love 12 Intellectual

13 Self-Respect 13 Logical

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No. Terminal Value No. Instrumental Value

14 National Security 14 Loving

15 Salvation 15 Obedient

16 Family Happiness 16 Polite

17 World at Peace 17 Responsible

18 An Exciting Life 18 Self-Controlled

Second Approach

Generational Values

Researchers have integrated several recent analyses of work values into four groups

that attempt to capture the unique values of different cohorts or generations in the

U.S. workforce.

Linking an Individual’s Personality and values to the Workplace

Two Approaches

 Person ------ Job Fit

 Person ------ Organization Fit

Person–Job Fit

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 The effort to match job requirements with personality characteristics is best articulated in John
Holland’s personality–job fit theory.

 Holland presents six personality types and proposes that satisfaction and the propensity to leave a
position depend on how well individuals match their personalities to a job.

Person-Organization Fit

 The person–organization fit argues that people are attracted to and selected by organizations that
match their values, and they leave organizations that are not compatible with their personalities.

 Using the Big Five terminology, we could expect:

- that people high on extraversion fit well with aggressive and team-

oriented cultures,

- that people high on agreeableness match up better with a

supportive organizational climate than one focused on

aggressiveness, and

- that people high on openness to experience fit better in

organizations that emphasize rather than standardization.

International values Geert Hofstede

One of the most widely referenced approaches for analyzing variations among cultures was done in
the late 1970s by Geert Hofstede.

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He surveyed more than 116,000 IBM employees in 40 countries about their work-related values and
found that managers and employees vary on five value dimensions of national culture:

Power distance:

A national culture attribute that describes the extent to which a society accepts that power in
institutions and organizations is distributed unequally.

Individualism:

A national culture attribute that describes the degree to which people prefer to act as individuals
rather than as members of groups.

Collectivism:

A national culture attribute that describes a tight social framework in which people expect others in
groups of which they are a part to look after them and protect them.

Masculinity:

A national culture attribute that describes the extent to which the culture favors traditional
masculine work roles of achievement, power and control. Societal values are characterized by
assertiveness and materialism.

Femininity:

A national culture attribute that indicates little differentiation between male and female roles; a high
rating indicates that women are treated as the equals of men in all aspects of the society.

Uncertainty avoidance: A national culture attribute that describes the extent to which a society feels
threatened by uncertain and ambiguous situations and tries to avoid them.

Long-term orientation:

A national culture attribute that emphasizes the future, thrift, and persistence.

Short-term orientation: A national culture attribute that emphasizes the past and present, respect for
tradition, and fulfilment of social obligations.

Chp 4 end

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Chapter 5 PERCEPTION

What is perception ? Factors Affecting perception

PERCEPTION IS THE PROCESS OF ORGANIZING AND INTERPRETING OUR SENSORY IMPRESSIONS IN
ORDER TO GIVE MEANING TO OUR ENVIRONMENT.

PEOPLE’S BEHAVIOR IS BASED ON THEIR PERCEPTION OF WHAT REALITY IS, NOT ON REALITY ITSELF.
HENCE IT IS IMPORTANT TO KNOW PERCEPTION.

Factors affecting perception

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1.Factors in the perceiver (aimee)

• Attitudes • Motives • Interests • Experience • Expectations

2. Factors in the target. (mnsss)

• Novelty • Motion • Sounds • Size • Background • Proximity • Similarity

3. Factors in the situation

• Time • Work setting • Social setting

STEPS IN THE RATIONAL DECISION-MAKING MODEL

RATIONAL DECISION-MAKING MODEL: A DECISION-MAKING MODEL THAT DESCRIBES HOW

INDIVIDUALS SHOULD BEHAVE IN ORDER TO MAXIMIZE SOME OUTCOME.

ASSUMPTIONS:

• THE DECISION MAKER HAS COMPLETE INFORMATION

• HE/SHE CAN IDENTIFY ALL THE RELEVANT OPTIONS IN AN UNBIASED MANNER

• HE/SHE CHOOSES THE OPTION WITH THE HIGHEST UTILITY

The Rational Decision-Making Model is a structured and systematic approach. Following are in steps
in Rational decision making.

(DIADES)

Define the Problem: The first step involves clearly understanding and defining the problem or
decision that needs to be made. This often involves identifying the goals and objectives to be
achieved and specifying the issues or challenges that must be addressed.

Identify the Decision Criteria: In this step, you establish the criteria or factors that are important in
making the decision. These criteria are the specific attributes, features, or aspects that will be used
to evaluate the alternatives.

Allocate Weights to the Criteria: Not all criteria are equally important. In this step, you assign weights
or priorities to each of the decision criteria to reflect their relative significance. This helps in
quantifying the importance of each criterion in the decision-making process.

Develop the Alternatives: Generate a list of possible solutions or alternatives to the problem. These
alternatives are different courses of action or strategies that could potentially address the issue at
hand.

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Evaluate the Alternatives: Assess each alternative against the established criteria. This evaluation
typically involves gathering information, data, or evidence relevant to each alternative and
comparing how well they perform with respect to the criteria.

Select the Best Alternative: After evaluating the alternatives, you choose the one that best meets the
criteria and aligns with the established goals and priorities. This is the alternative that is considered
the most rational choice.

BOUNDED RATIONALITY
A PROCESS OF MAKING DECISIONS BY CONSTRUCTING SIMPLIFIED MODELS THAT EXTRACT THE
ESSENTIAL FEATURES FROM PROBLEMS WITHOUT CAPTURING ALL THEIR COMPLEXITY.

SATISFICE- PEOPLE SEEK SOLUTIONS THAT ARE SATISFACTORY AND SUFFICIENT.

INTUITION

• AN UNCONSCIOUS PROCESS CREATED OUT OF EXPERIENCE.

• INTUITIVE DECISION MAKING IS THE LEAST RATIONAL WAY OF MAKING DECISION.

Explain various biases in decision making

(HORRECAA)

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FACTORS AFFECTING DECISION MAKING
Decision making is influenced by a wide range of factors, and individual differences, as well as
contextual and organizational factors, can play a significant role. Here's an overview of the factors
you mentioned:

Individual Differences:

Personality: Different personalities can lead individuals to make decisions in various ways. For
example, risk-takers may make different choices compared to those who are risk-averse.

Gender: Gender can influence decision-making due to societal and cultural factors. However, it's
important to note that individual variation within genders is substantial.

Mental Ability: Cognitive abilities, such as problem-solving skills and critical thinking, can affect how
individuals make decisions. People with different levels of mental ability may approach problems
differently.

Cultural Differences:

Cultural norms and values can significantly impact decision-making. Different cultures may prioritize
various factors and approaches to decision-making, such as collectivism vs. Individualism.

Organizational Constraints:

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Performance Evaluation: The way employees are evaluated and rewarded within an organization can
affect their decisions. If decisions are linked to performance metrics, individuals may make choices to
optimize their performance reviews.

Reward Systems: The incentive structures in an organization, including bonuses, promotions, and
recognition, can influence decision-making. Employees may be motivated to make decisions that
align with the potential for rewards.

Formal Regulations:

Legal and regulatory requirements can impose constraints on decision-making within an

organization. Decisions must often comply with laws, regulations, and industry standards.

System-Imposed Time Constraints:

The available time to make a decision can affect its quality. Urgent decisions may lead to rushed or
suboptimal choices, while more time can allow for thorough analysis.

Historical Precedents:

Past decisions and their outcomes can influence current decision-making. Individuals and
organizations often rely on historical precedents to guide their choices and avoid repeating mistakes.

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Chapter 6- Motivation
Definition

It is the internal or external stimulus that energizes and directs people toward achieving a particular
goal, completing a task, or satisfying a need. Motivation can arise from various sources, such as
personal desires, external rewards, intrinsic satisfaction, or social influences.

Maslows Hierarchy Theory

Maslow proposed that individuals are motivated to fulfill the needs in a hierarchical order, starting
from the most basic and progressing to higher-level needs. The hierarchy is often represented as
follows, with the lower-level needs at the base and higher-level needs at the top:

1. Physiological Needs: These are the most basic and fundamental human needs, including air,
water, food, shelter, sleep, and other biological requirements. These needs must be satisfied
before an individual can move on to higher-level needs.

2. Safety Needs: Once physiological needs are met, individuals seek safety and security. This
includes physical safety, health, financial stability, and protection from harm or danger.

3. Social Needs (Love and Belongingness): With physiological and safety needs satisfied,
people then look for social connections, love, and a sense of belonging. This involves forming
relationships, friendships, and being a part of a community or social group.

4. Esteem Needs: After fulfilling social needs, individuals seek self-esteem and the recognition
of others. This can involve gaining confidence, achieving personal goals, receiving respect
from others, and feeling a sense of accomplishment.

5. Self-Actualization: At the top of the hierarchy is the need for self-actualization. This involves
realizing one's full potential, achieving personal growth, pursuing creativity, and fulfilling
one's unique abilities and talents.

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Two-Factor Theory
Frederick Herzberg's Two-Factor Theory, also known as the Motivation-Hygiene Theory or Dual-
Factor Theory, is a psychological theory that addresses factors influencing job satisfaction and
dissatisfaction. Herzberg proposed that there are two sets of factors that impact an individual's
motivation and job satisfaction in the workplace:

Herzberg's Two-Factor Theory suggests that improving hygiene factors can prevent dissatisfaction but
may not necessarily increase satisfaction and motivation. To enhance motivation, organizations
should focus on addressing and promoting motivational factors. This theory implies that the factors
influencing satisfaction and dissatisfaction at work are not necessarily on a single continuum; rather,
they represent two separate dimensions.

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Theory X And Theory Y- Douglas McGregor

Modern Theories of Motivation

ERG Theory

The ERG theory of motivation is a psychological model proposed by Clayton Alderfer as an extension
of Abraham Maslow's Hierarchy of Needs. ERG stands for Existence, Relatedness, and Growth,
representing three basic categories of human needs. Alderfer's ERG theory simplifies Maslow's
hierarchy into a more flexible framework and addresses the complexities and variations observed in
individuals' motivations.

Here are the three components of the ERG theory:

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 1. Existence Needs (E):

 Corresponds to Maslow's physiological and safety needs. These are the basic
requirements necessary for human survival, such as food, water, shelter, and physical
safety.

2. Relatedness Needs (R):

 Incorporates elements of Maslow's social and esteem needs. Relatedness needs

involve interpersonal relationships, social connections, and the desire for
acceptance, affection, and meaningful interaction with others.

3. Growth Needs (G):

 Aligns with Maslow's self-actualization needs. Growth needs include the desire for
personal development, achievement, and the realization of one's potential. This
category involves intrinsic motivation, a sense of accomplishment, and the pursuit of
challenging and meaningful goals.

Alderfer's ERG theory differs from Maslow's Hierarchy in that it allows for the simultaneous existence
of multiple needs within each category. Additionally, it recognizes that individuals may prioritize
different needs at different times, acknowledging the dynamic and fluid nature of human motivation.

David McClelland's Theory of Needs

It is a motivational psychological theory that focuses on the three fundamental needs that drive
human behavior. McClelland proposed that individuals possess varying levels of three needs:
Achievement, Affiliation, and Power. These needs, according to McClelland, influence an individual's
motivation and behavior in the workplace and other settings.

1. Need for Achievement (N-Ach):

 Individuals with a high need for achievement are motivated by the desire to set and
accomplish challenging goals. They seek situations that require personal
responsibility and effort, and they take pride in their accomplishments. These
individuals often prefer tasks with a moderate level of difficulty, where success is
attributed to their own abilities and efforts.

2. Need for Affiliation (N-Aff):

 The need for affiliation pertains to the desire for positive interpersonal relationships,
social connections, and a sense of belonging. Individuals with a high need for
affiliation are motivated by the need to be liked, accepted, and involved in friendly
and cooperative interactions with others. They value collaboration and teamwork.

3. Need for Power (N-Pow):

 The need for power involves the desire to influence and control others, shaping
one's environment, and having an impact on outcomes. McClelland identified two
forms of the need for power: Personalized (seeking power for personal gain) and
Socialized (seeking power for the benefit of others or the organization). Individuals
with a high need for power may be motivated by leadership positions and
opportunities to influence decision-making.

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McClelland's Theory of Needs suggests that the dominance of one or more of these needs in an
individual can significantly influence their behavior and career choices. Importantly, these needs are
not mutually exclusive, and individuals may exhibit a combination of them to varying degrees.

Job Characteristics Model

The Job Characteristics Model (JCM) of motivation was developed by psychologists J. Richard
Hackman and Greg Oldham in the 1970s. The model is designed to understand how certain job
characteristics influence employee motivation, satisfaction, and performance. According to the JCM,
five core job characteristics contribute to an employee's experience of meaningful work and
motivation:

1. Skill Variety: The degree to which a job requires a variety of different activities, skills, and
talents. Jobs that involve a range of tasks can be more engaging and motivating.

2. Task Identity: The extent to which a job involves completing a whole and identifiable piece of
work. When employees can see the tangible outcome of their efforts, it can enhance their
sense of accomplishment and motivation.

3. Task Significance: The impact and importance of the job on other people, either within or
outside the organization. Jobs that make a meaningful contribution to the well-being of
others tend to be more motivating.

4. Autonomy: The degree to which a job provides employees with the freedom, independence,
and discretion to schedule their own work and make decisions. Higher levels of autonomy
can lead to increased motivation.

5. Feedback: The extent to which employees receive clear, direct, and timely information about
their performance. Regular feedback helps employees understand the results of their efforts
and provides opportunities for improvement.

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According to the JCM, the presence of these five characteristics leads to three psychological states
that mediate the relationship between job characteristics and employee outcomes:

1. Experienced Meaningfulness of Work: The extent to which the employee finds the work
inherently meaningful and worthwhile.

2. Experienced Responsibility for Outcomes of Work: The degree to which employees feel
personally accountable and responsible for the outcomes of their work.

3. Knowledge of Results: The extent to which employees receive feedback about the
effectiveness of their efforts.

How can Jobs be Redesigned

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Chapter 7 - Group and group behavior
Two or more individuals, interacting and interdependent, who have come together to achieve
particular objectives.

Groups can be either formal or informal.

Stages of forming groups

Punctuated equilibrium model

The Punctuated Equilibrium Model suggests that temporary groups with deadlines go through a
distinct sequence of actions, characterized by periods of stability (inertia) and transitions prompted
by external events or the need to meet deadlines. The model highlights the non-linear nature of
group development and the importance of recognizing critical points for intervention and
adjustment.

1. Setting Group Direction: This is the initial phase where the group establishes its goals, roles,
and procedures. It's a period of forming and orientation.

2. First Phase of Inertia: After the initial phase, the group enters a period of stability or inertia
where there's a continuation of established patterns and routines. This phase is marked by
low activity levels.

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 3. Halfway Point Transition: At the halfway point of the group's existence or the project
timeline, there is a significant transition. This transition serves as a punctuation point,
disrupting the inertia and prompting the group to reassess its goals and strategies.

4. Major Changes: Following the halfway point transition, the group experiences major
changes. These changes could include shifts in goals, structures, or processes. It's a critical
period of adaptation and adjustment.

5. Second Phase of Inertia: After the major changes are implemented, the group enters
another phase of stability or inertia. This phase is characterized by the continuation of the
newly established patterns and structures.

6. Accelerated Activity: Towards the end of the group's existence or project timeline, there is
an acceleration of activity as the group works towards meeting the impending deadline. This
phase is marked by increased productivity and a sense of urgency.

fundamental properties of groups in organizational context.

Let's delve a bit deeper into each of these properties:

1. Roles:

 Definition: Roles are the expected behaviors, duties, and responsibilities associated
with a particular position or function within the group.

 Significance: Roles help in organizing group activities, ensuring tasks are completed,
and providing a structure for individual contributions. They contribute to the overall
functioning and efficiency of the group.

2. Norms:

 Definition: Norms are the shared expectations and rules within a group that define
acceptable and unacceptable behavior.

 Significance: Norms guide behavior, promote predictability, and create a sense of

order within the group. They contribute to the development of group identity and
cohesion.

3. Status:

 Definition: Status refers to the perceived level of importance, prestige, or influence

that an individual holds within the group.

 Significance: Status influences how individuals are perceived by others in the group,
affecting communication patterns, decision-making, and overall group dynamics.

4. Size:

 Definition: Size refers to the number of individuals in the group.

 Significance: Group size can impact communication, interaction, and decision-

making processes. Small groups may foster intimacy, while large groups can offer a
diversity of skills and perspectives.

5. Cohesiveness:

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  Definition: Cohesiveness is the degree of unity, togetherness, and attraction among
group members.

 Significance: Cohesive groups often experience better collaboration, communication,

and overall member satisfaction. However, overly cohesive groups may face
challenges in accepting diverse opinions and adapting to change.

Social Loafing
Social Loafing: Social loafing is a phenomenon where individuals tend to exert less effort when
working collectively in a group than when working individually. This can lead to diminished overall
group performance and productivity. The concept was first demonstrated by Max Ringelmann in his
rope-pulling experiments, where he observed that as group size increased, individual effort and
performance tended to decrease.

Causes of Social Loafing:

1. Equity Concerns:

 Individuals may perceive that others in the group are not contributing equally,
leading to a reduction in personal effort as a form of protest or disengagement.

2. Diffusion of Responsibility:

 The presence of others in a group may create a diffusion of responsibility, where

individuals feel less accountable for their contributions, assuming that others will
pick up the slack.

Managerial Implications:

1. Identify Individual Effort:

 Managers should strive to recognize and measure individual contributions within a

group context to discourage free riding.

2. Build in Individual Accountability:

 Assign specific roles and responsibilities to each team member, making it clear that
their individual efforts are vital for the success of the entire group.

Preventing Social Loafing:

1. Set Group Goals:

 Establish clear and challenging group goals that emphasize the importance of each
member's contribution. This can help align individual efforts with collective
objectives.

2. Increase Intergroup Competition:

 Fostering competition between groups can motivate individuals to put forth greater
effort, as they strive to outperform other teams.

3. Use Peer Evaluation:

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  Implement mechanisms for peer evaluation where team members provide feedback
on each other's contributions. This encourages accountability and ensures that
individual efforts are acknowledged.

4. Distribute Group Rewards Based on Individual Effort:

 Tie rewards to individual performance rather than solely to group outcomes. This
helps recognize and reinforce the importance of each member's contribution.

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