Organizational Behaviour

DEFINITION OF OB
OB refers to the behavior of individuals and groups within organizations and the interaction between organizational members and their external environments.

NATURE OF OB
1.

What are organizations? Organizations are sets of people who work together to achieve shared goals.

2. Why do organizations Exist? Increased specialization and division of labour Technology The external environment Investment power and control

NATURE OF OB
3. Organizational Effectiveness: What is important is that societies need effective organizations. Effective organizations produce quality goods at reasonable cost.

NATURE OF OB

Individual behavior in organization settings

The Individual organizational Interface relationship

The organization Environment

Importance of OB

The field of OB uses scientific research to help us understand and predict organizational life(culture & climate). OB helps us influence organizational events. OB helps an individual understand himself/herself and others better OB will help the manager understand the basis of motivation and what he or she should do to motivate subordinates

Importance of OB

The field of OB is useful for maintaining cordial industrial relationship. The subject of OB is also useful in the field of all functions of management. OB helps an individual to shape his or her career.

Historical Evolution of OB

Interest in the welfare of workers is age old but experts trace the development of OB from the beginning of the 19th century. Prior to the 19th century, the plight of an average worker was miserable. He had to work under in human working conditions as he had no other option. He had to live.

Historical Evolution of OB

The industrial revolution benefited the worker in the form of increased wages and reduced working hours. Robert Owen, Andrew and J.N. Tata were the pioneers in providing welfare facilities to workmen. Taylor revived interest in human resources at work. But he wanted to increase production by rationalizing everything.

Historical Evolution of OB

The great depression, the labour movement movement and results of the Hawthorne studies gave birth to the human relations movement. The human relations movement developed fast. The movement lost its flavour and gave place to organizational behaviour.

JOB SATISFACTION

DEFINITION: Job satisfaction refers to the general attitude of employees towards their jobs and it is a positive attitude towards one job.

Causes of job satisfaction

Organizational factor 2. Group factor 3. Individual factor
1.

1. Organizational factor

Wages Promotions Nature of work Organizational policies and procedures Working conditions

2. Group factor

Size Supervision social relationship

Individual factor

Personality Perception Self interest General life satisfaction

Average Job satisfaction levels by Facet:

Work Itself Pay Promotion Supervision Coworkers

The Impact of Dissatisfied Employees on the Workplace:

Exit Voice Loyalty Neglect

Responses of job satisfaction:

Job satisfaction and performance Job satisfaction and customer satisfaction Job satisfaction and absenteeism Job satisfaction and turnover Job satisfaction and Research work

Job satisfaction Survey

Job satisfaction survey benefits:

Indication of general levels of satisfaction in a company Job satisfaction survey is improved attitude Discover the causes of indirect productivity problems Assess training needs Impact of organizational change

DECISION MAKING

DECISION MAKING: DEFINITION

Decision making is a process of identifying problems and opportunities and then resolving the problem . Decision making involves efforts both before and after the actual choice.

Types of decision
1. 2. 3. 4.

Programmed decisions Non-programmed decisions Adaptive decisions Innovative decisions

1. Programmed decisions

Programmed decisions, also called routine decisions, represent the choices made in response to relatively well-defined and common problems and alternative solutions.

2. Non-programmed decisions

Non-programmed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have significant consequences for the organizations.

3. Adaptive decisions

Adaptive decisions typically involve modifying and improving on past routine decisions and practices.

4. Innovative decisions

These are decisions based on discovery, identification, and diagnosis of unusual and ambiguous problems and the development of unique or creative alternative solutions.

Decision making conditions

Assurance Risk Uncertainty Indistinctness or Ambiguity Corporate culture

Decision making process

1. Define the problem 2. Set goals 3. Search for alternative solutions 4. Evaluate alternative solutions 5. Selection of alternative solutions 6. Implementation 7. Follow-up

Models of decision making

Classical model 2. Behavioral model
1.

1. Classical model
This model is based on economic assumptions. Managers are expected to make decisions that are economically sensible and serve the organizations interests.

1. Classical model
Clearly defined problem

Knowledge of the possible alternatives

Choice of the optimum alternative Managerial action

2. Behavioral model
This theory posits that people act in terms of what they really perceive about a given situation. This decision maker acts under conditions of uncertainty and lack of information.

2. Behavioral model
Problem not clearly defined

Limited knowledge on possible alternatives

Choice of a satisfactory alternative Managerial action

Decision making styles

Using knowledge, skill and experience Applying logic to reach conclusions Analyzing issues to understand the whole picture Coming to conclusion by emotions Using imagination to create new ideas

Benefits of decision making

ATTITUDES

ATTITUDES: DEFINITION

Attitude is a state of mind of an individual towards something. It may be defined as a tendency to feel and behave in a particular way towards objects, people or events. Attitudes are an overall evaluation that allows one to respond in a consistently favorable or unfavorable manner with respect to a given object or alternative.

Characteristics of attitudes

Attitudes have an object Attitudes have direction, degree Attitudes have structure Attitudes are learned

Importance of attitudes

Influences productivity Creates positive work environment Assists employees in advancement Builds customer loyalty Effects perception of employees Helps in reducing stress Improves quality of life Maintains safety

Components of attitudes
Cognitive component 2. Affective component 3. Behavioral component
1.

1. Cognitive component

The cognitive component of an attitude is conceptualized as a persons factual knowledge of the situation, object or person. In other words, the cognitive components refers to how much a person know about the situation or object .

2. Affective component

The affective component of attitude consists of a persons evaluation of, liking of, or emotional response to some situation, object, or person. Affective responses reflect ones attitude with sensations of pleasure sadness, or other levels of physical stimulation.

3. Behavioral component

The behavioral component of an attitude involves the persons open behavior directed toward a situation, object, or person.

Job related attitude

Job satisfaction Job involvement Job engagement Organizational commitment

Effects of employee attitudes

Employee performance Employee turnover Employee absence Violent behavior Job related attitude

Attitude formation

Childhood formation Adulthood formation Maturity formation

Factors influencing attitude formation

Psychological factors Social factors Economic factors Family factors Organizational factors Political factors

Changing attitude

Change in ideas and beliefs Change in feeling or emotions Change in situation Change in behavior

Benefits of individual attitude

VALUES

INTRODUCTION
Value shape Beliefs Perception Attitude

Behavior, interests, personality

VALUES : DEFINITION
Values are group of likes, dislikes, viewpoints, inner preference, balanced and unbalanced judgments, unfairness, and association pattern that determine a persons view of the world.

Characteristics of values

Part of culture Learned responses Inculcated (transmission) Social observable fact Acceptable responses Adaptive process

Sources of values

Familial factors Social factors Personal factors Cultural factors Life experiences Halo effect Role demand

Types of values

Terminal values Instrumental values

1. Terminal values

Comfortable life Happiness , satisfaction in life Peace Wealth Security and freedom Self respect Knowledge and wisdom

2. Instrumental values

Ambition Courage Honesty Helpfulness Obedience Hard work and achievement Education

Classification of values

Human values Social values Business values Family values Professional values

Importance of values

Values effect individual thoughts and action Values influences employee motivation Values relate to belief system Values create credibility Values provides guidelines for decision making and conflict resolution

UNIT II

PERSONALITY

PERSONALITY: DEFINITION
Personality can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her organization environment.

NATURE OF PERSONALITY

Personality reflects individual differences Personality is dependable Personality can change

FACTORS INFLUENCING PERSONALITY or DETERMINANTS

1. BIOLOGICAL FACTORS 2. CULTURAL FACTORS 3. FAMILY AND SOCIAL FACTORS 4. OTHERS FACTORS

1. BIOLOGICAL FACTORS

Heredity Brain Physical features

2. CULTURAL FACTORS

Beliefs Values traditions Habits Moral values

3. FAMILY AND SOCIAL FACTORS

Home environment Family members Social groups

4. OTHER FACTOR

Interest Character & behavior Individual perception and behavior

THEORIES OF PERSONALITY
1. Type theory 2. Trait theory 3. Big five model 4. Social learning theory 5. Humanistic theory 6. Psychoanalytic theory

1. Type theory-MBTI- Myers-Briggs Type Indicator theory

a. b. c. d.

e.
f. g.

Introverts grater sensitivity and emotions Extroverts sociable individuals Sensing practical Intuitive- create big picture Thinking-logical Judging-control Perceiving-flexible and spontaneous.

2. Trait theory
trait theory classify individuals on the basis of traits. Sixteen primary traits: 1. Reserved 2. Intelligent 3. Emotional 4. Submissive (obedient) 5. Serious 6. Self dependent

Sixteen primary traits:

7. Expedient (practical) 8. Sensitive 9. Hard minded 10. Trusting 11. Forthright (outspoken) 12. Self assured 13. Group dependent 14. Controlled and uncontrolled 15. Relaxed/tensed 16.conservative(traditional)

3. Big five model

1. 2. 3. 4. 5.

Extraversion Agreeableness Conscientiousness Emotional stability Openness to experience

3. Big five model

Extraversion This dimension captures ones comfort level with relationships. Extraverts tend to be sociable, confident. 2. Agreeableness This dimension refers to an individuals propensity to defer to others. Highly agreeable people are cooperative, warm and trusting.
1.

3. Big five model

3. Conscientiousness This dimension is a measure of reliability. A highly conscientious person is responsible, organized and dependable.

3. Big five model

4. Emotional stability This dimension taps a person ability to withstand stress. Tend to be self confident and secure.

3. Big five model

5. Openness and experience

creative and novelty

SOCIAL LEARNING THEORY

Competencies- intelligence ability 2. Cognitive strategies- situation 3. Outcome expectations 4. Subjective value outcome 5. Self regulatory system and plan
1.

HUMANISTIC APPROACH
1. 2. 3. 4. 5.

Human potential Self direction Freedom of choice Human positive nature Subjective experiences

Psychoanalytic theory
1. 2. 3.

ID EGO SUPER EGO

MEASURING PERSONALITY
1. 2. 3.

Self report survey Observation Projective measures

Major personality attributes influencing OB

1.TYPE A PERSONALITY

Are always moving Feel impatient Strive to think Measuring their success

2. TYPE B PERSONALITY

Never suffer from a sense of time urgency Play for fun and relaxation Can relax without guilt

3. Machiavellianism

Maintains emotional distance Believes that ends can justify means

4. self monitoring

it refers to an individual ability to adjust his or her behavior to external, situational factors.

5. Risk taking

people differ in their willingness to take chances

MOTIVATION

MOTIVATION: DEFINITION
Motivation is the willingness to exert high levels of effort toward organizational goals, conditioned by the effort and ability to satisfy some individual need.

Nature of motivation

Motivation is a psychological concept Motivation is a continuous process Motivation is dynamic and situational Motivation is not easily observed phenomenon Motivation is goal oriented

Types of motivation
1. 2. 3. 4.

Positive motivation Negative motivation Extrinsic motivation Intrinsic motivation

Theories of motivation

Maslow's theory

Maslow's theory

Maslow's theory

McGregors Theory X & Theory Y

McGregors Theory X & Theory Y

McGregors Theory X & Theory Y

Clayton Alderfers ERG theory

ERG theory

ERG theory

Herzberg's two factor theory

Herzberg's two factor theory

Herzberg's two factor theory

Vroom's Expectancy theory

Vroom's Expectancy theory

Vroom's Expectancy theory

ADAMS EQUITY THEORY

ADAMS EQUITY THEORY

ADAMS EQUITY THEORY

ADAMS EQUITY THEORY

Process of motivation

Benefits of OB

To understand employees expectation

Improve team performance

Jointly direct to achieve

Improve unity

Improve learning power

Career growth

Job satisfaction

Taste success

Make everybody to perform

Give meaning to organization

Create participative environment

Direct employees with different task

Business success

Social relationship

Joy to enter organization

conclusion

PERCEPTION

DEFINITION

FACTORS THAT INFLUENCE PERCEPTION

Person Perception: Making Judgments About Others

Distinctiveness: shows different behaviors in different situations. Consensus: response is the same as others to same situation. Consistency: responds in the same way over time.

Attribution Theory

Errors and Biases in Attributions

Errors and Biases in Attributions (contd)

Frequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging Others

Specific Applications in Organizations

Employment Interview Performance Expectations Performance Evaluation Employee Effort

The Link Between Perceptions and Individual Decision Making