Organizational Behavior Presentation-3

Organizational Behavior
PERCEPTION
Why is perception important in the
study of OB?
■ People’s behavior is based on their perception
of what reality is, not on reality itself.
Perception
Perception means
■What
What you believe to be true
Perception
■ Perception is the process of receiving information about and
making sense of the world around us. It involves deciding
which information to notice, how to categorize this
information and how to interpret it within the framework of
existing knowledge.
■ A process by which individuals organize and interpret their

sensory impressions (vision, hearing, touch, smell and
taste) in order to give meaning to their environment.
Perception
Perception
Perception
Perception
Stimulation
Organization
Process of
Interpretation Evaluation
Interpretation-
Perception
Memory
Recall
Process of Perception
■ Stimulation: Your senses are stimulated or become more active. (sme
taste, feel, see, hear)
■ Organization: organize the information that your senses pick up.

(proximity, similarity, contrast)
■ Interpretation- Evaluation: Influenced by your experiences, needs,

wants, values, beliefs, expectations, etc.
■ Memory: our brain store this as a memory.
■ Recall: we can now recall this perceived memory anytime.

Applications of Perception in
Organizations
Perception tends to influence decision--making. Thus, Perceptions, in many cases,
have important effect on organisations.
■ Employment Interview: Interviewers make perceptual judgments that are often

inaccurate. Different interviewers try to see different things in the same candidate
and thus, arrive at different perceptions about the same candidate.
■ Performance Appraisal: Assessment of an employee’s performance very much

depends on the perception of the evaluator about the employee. In practice, an
employee’s future is closely tied to his or her performance appraisal.
Applications of Perception in
Organizations
■ Performance Expectation: New employee during their selectio
process acquire a set of expectations both about the organisatio
and job he is expecting to achieve.
achieve
■ Employee Loyalty: While assessing employees, the managers als

make another important decision whether the employee are loyal t
organisation or not.
Factors that influence perception
■ Perceiver
■ Situation
■ Target
■ Perceiver is the person trying to interpret some

observation that he or she has just made.
■ Situation is the context in which perception takes

place – a committee meeting, in front of the office
coffee machine and so on.
on
■ Target of perception is whatever the perceiver is

trying to make sense of.
■ The target can be another person, a group of people,
an event, an idea, a noise or anything else the
perceiver focuses on.
Factors in the perceiver
• Attitudes
• Motives
• Interests
• Experience
• Expectations
Factors in the situation

Perception
• Time
• Work Setting
• Social Setting
Factors in the Target
• Novelty
• Motion (visual scenes)
• Sounds
• Size
• Background
• Proximity
• Similarity
• Attitudes
• Motives
• Interests
• Experience
• Expectations
■ Attitude:: how we feel about something
■ Motives: it reflects stimuli that cause to perform particular

action. States goals, purpose perceived by perceiver from
event.
■ Interest: state that power the force an attitude has towards

manifestation in a persons behavior. For example, an
imperfect faced person will be perceived quickly by a plastic
surgeon as compared to a dentist.
dentist
■ Expectations: state that anticipation of a particular behavior
from person, affects what a person perceives.
■ Experience: experience and knowledge serve as basis for

perception. While one’s successful experience enhance
his/her perceptive ability, failure erodes her/his self
confidence. Successful experience also helps perceiver
understand stimuli with more accuracy.
• Time
• Work Setting
• Social Setting
■ Time: it also affects perception.
– What are the factors that affect your perception of how time
passes?
■ Level of fatigue
■ Level of concentration
■ Depression & Happiness
■ Work setting: Suppose, if (JAVA Programming) Class is small
and peaceful, the students perceive the subject easily and
quickly and vice versa.
■ Social setting (How an individual perceives
other): it is that part of perception that allows
people to understand the other people in their social
world.
Factors in the target
• Novelty
• Motion (visual scenes)
• Sounds
• Size
• Background
• Proximity
• Similarity
■ Novelty: Something unique is likely to attract anyone’s
attention.
■
■ Motion: The motion principle says that people will pay
more attention to moving objects in their field of vision than
will to non-moving/stationary
moving/stationary objects.
■ Example:
– Children will more attracted by a running train/bus than one
standing on the platform/bus stand.
– Advertisers create signs that incorporate moving parts.
■ Sounds: Louder and frequent is the sound easier and
quicker will be the perception and vice versa.
■ Example:
– Music
– Radio advertisement
■ Size: The size of things is closely related to intensity. We
are most likely to notice things that stand out because of
their size relative to other things in that area.
■ Example:
– Which you can read fast?
Work
Work
■ Background: Background also perceives the perceiver
attention.
■ Example:
DANGER
■ Proximity (nearness): The things that are proximate to
physical settings are perceived easily and quickly.
■ Example:
– Students coming out of a lecture hall often department or
work groups are perceived as a single entity because of
physical proximity.
■ Similarity: If the things are similar to us, we perceive it
easily and quickly.
■ Example:
– When watching Foot ball and cricket games, we identify
individuals based on the colors of their uniforms.
MOTIVATION
Motivation
■ Motivation is the processes that account for an

individual’s intensity, direction, and persistence of
effort toward attaining a goal.
goal
Theories of Motivation
■ Hierarchy of Needs Theory

■ Two Factor Theory
■ Expectancy Theory
Hierarchy of Needs Theory
■ The best known theory of motivation is Abraham Maslow’s
Hierarchy of Needs.
■ Maslow’s Theory based on the Hierarchy of Human Needs
■ Under this theory, human needs fall into five fundamental

categories in a predictable order of priorities.
Streng
of Nee
Maslow’s Hierarchy of Needs: Physiological Needs
■ Physiological Needs are the basic needs for sustaining

human life.
■ The need for food, shelter, water, clothes etc.
■ These needs include:
– Food
– Shelter
– Clothing
– Air
– Water
– Rest etc.,.
Maslow’s Hierarchy of Needs: Physiological Needs
Maslow’s Hierarchy of Needs: Safety or Security Needs
■ The need for physical security, financial
security and health
– Psychological fear of loss of job
– Security of job
– Pension for old age
– Insurance cover for life
– Property
Maslow’s Hierarchy of Needs: Safety or Security Needs
Maslow’s Hierarchy of Needs: Social Needs
■ The need for love and belonging
– Friends
– Relationships
– Interaction with employees & superiors
– Family
– Affection
Maslow’s Hierarchy of Needs: Social Needs
Maslow’s Hierarchy of Needs: Esteem Needs
■ The need for recognition from others and self esteem
– Self respect
– Self confidence
– Status
– Reputation
– Recognition
– Appreciation
– Achievement
– Desire for success
Maslow’s Hierarchy of Needs: Esteem Needs
Maslow’s Hierarchy of Needs: self actualization
■ The need to understand & reach one’s true potential
■ It is the desire to become what one is capable of
becoming
■ The needs include:
– Personal growth
– Self fulfilment
– Morality
– Creativity
– Acceptance of facts
– Lacks prejudice
Examples of how needs are met or satisfied in an
Need Level
organization
By receiving a minimal level of pay that enables a
Physiological Needs worker to buy food and clothing and have adequate
housing
By receiving job security, adequate medical
Security Needs
benefits, and safe working conditions
By having good relations with co-workers and
supervisors, being a member of a cohesive work
Social Needs
group and participating in social functions such as
company picnics and holiday parties
By receiving promotions at work and being
Esteem Needs
recognized for accomplishments on the job
Self Actualization By using one’s skills and abilities to the fullest and
Needs striving to achieve all that one can on a job
Maslow’s Hierarchy of Needs
Two Factor Theory
■ It is also called Herzberg Motivation-Hygiene
Motivation Theory
■ Two factors are:

– Job dissatisfaction
– Job satisfaction
Two Factor Theory
Dissatisfaction
Less More
(Hygiene Factors)
Satisfaction More
Less
(Motivational Factors)
Two Factor Theory
■ Dissatisfaction is the results of the hygiene factors.
These factors, if absent or inadequate, cause
dissatisfaction, but their presence has little effect on
long-term satisfaction.
■ Satisfaction which is mostly affected by the

motivational factors. Motivation factors help
increase the satisfaction but aren’t that affective on
dissatisfaction.
Two Factor Theory
• Hygiene Factors • Motivational Factors
 Salary and Benefits  Achievement
 Company Policies and  Recognition
Administration
 Relationships with co-  Responsibility
workers
 Working Environment  Promotion
 Job Security  Growth
 Fringe Benefits  Work Itself
Two Factor Theory
Employees Employees not

Employees
dissatisfied dissatisfied
Hygiene Motivational satisfied an
and Factors and Factors
motivated
unmotivated unmotivated
Job
Herzberg’s Two Job Satisfaction
Dissatisfaction
Factor Theory
Improving the
motivator factors
Influenced by Influenced by
increases job
Hygiene Factors Motivator Factors
satisfaction
 Salary & Benefits  Achievement
 Working conditions  Recognition
 Policies and Rules Improving the hygiene  Personal Growth
 Job Security factors decreases job  Responsibility
dissatisfaction
Expectancy Theory
■ How expectancy theory relates to the work
environment?
■ How expectancy theory relates to being a manager?
Expectancy Theory
■ The expectancy theory says that individuals have different set
of goals and can be motivated if they have certain
expectations.
■ In other words, if people expect a positive and desirable

outcome, they will usually work hard to perform at the level
expected of them.
Expectancy Theory
■ This theory is about choice, it explains the processes
that an individual undergoes to make choices.
■ Expectancy theory is a motivation theory first

proposed by Victor Vroom
■ Vroom realized that employee’s performance based

on individual factors, such as personality, skills,
knowledge, experience and abilities.
How does it differ from other motivational theories?
■ Maslow and Herzberg concentrate on needs, but

Vroom focuses on outcomes.
outcomes
■ Whereas Maslow and Herzberg look at the

relationship between internal needs and the
resulting effort expended to fulfill them, Vroom
separates effort, which arises from, motivation,
performance, and outcomes.
outcomes
Expectancy Theory
■ Employees will be motivated to exert a high level of
effort when they believe it will lead to a good
performance appraisal, that a good appraisal will
lead to organizational rewards(outcome) such as
bonuses, salary increases, or promotions, and that
the rewards will satisfy the employees personal
goals.
Expectancy Theory
1 2 3
Expectancy Theory
■ Therefore, the theory focuses on three relationships:
1. Effort-Performance Relationship:
Relationship The probability perceived by the
individual that exerting a given amount of effort will lead to performance
2. Performance-Reward Relationship
Relationship: The degree to which the
individual believes performing at a particular level will lead to the
attainment of a desired outcome
3. Rewards-Personal Goals Relationship:

Relationship The degree to which
organizational rewards satisfy an individual’s personal goals or needs
and the attractiveness of those potential rewards for the individual.
Application of Motivation
Motivating by Job Design:
■ Job Characteristics Model
■ Alternate Work Arrangements
■ Employee Involvement
■ Rewarding Employees
Application of Motivation: Job Characteristics Model (JCM)
■ Developed by J. Richard Hackman and Greg Oldham.
■ Job Characteristics Model: A model that proposes that any
job can be described in terms of five core job dimensions.
1. Skill Variety
2. Task Identity
3. Task Significance
4. Autonomy
5. Feedback
Application of Motivation: Job Characteristics Model
Core Job Definition Example
Characteristics
Skill Variety The degree to • Computer Science Engineer

which a job must be able to develop
requires a variety software and expert in
of different computer programming
activities. languages.
• The ability to develop and
interpret technical plans.
Characteristics
Task Identity The degree to which • Tailors will have high task
a job requires identity if they do everything
completion of a related to making a suit (
whole and Measuring the client,
identifiable piece of selecting the fabric, cutting
work, that is, doing a and sewing it, and altering
job from beginning to fit )
to end with a viable • Event Manager
outcome.
Characteristics
Task The degree to • Medical Researchers

Significance which a job has a working on a cure for a
substantial impact deadly disease probably
on the lives or work recognize the importance of
of other people their work to the world at
large.
Characteristics
Autonomy The degree to which • A furniture repair person
a job provides may act highly
substantial freedom autonomously by freely
and discretion to the scheduling his day’s work
individual in and by freely deciding how
scheduling the work to tackle each repair job
and in determining confronted.
the procedures to be
used in carrying it
out.
Characteristi
cs
Feedback It refers to the extent • Telemarketing
to which the job representatives regularly
allows people to receive information about
have information how may calls they make pe
about the day and the number and
effectiveness of their values of the sales made.
performance
How can jobs be Redesigned?
Job Redesign Techniques:
■ Job Rotation: The periodic shifting of an employee
from one task to another..
■ Job Enrichment: The vertical expansion of jobs,
which increases the degree to which the worker
controls the planning, execution, and evaluation of
the work.
■ Job Enlargement: The horizontal expansion of jobs,
redesigning jobs by increasing the number of tasks
performed at same level..
Employee Job Standard Tasks: Drill Holes, Assemble Parts
Job Enlargement (more Job Enrichment (more

tasks at same level of responsibility to the same
responsibility): number of tasks):
Tasks: Drill Holes, Task 1: Drill Holes,
Assemble Parts
Assemble Parts, Task 2: Ordering Material,
Testing Parts Planning Work Load
Motivation: Alternate Work
Arrangements
These are likely to be especially important for a
employees caring for a sick or aging relative.
■ Flextime
■ Job Sharing
■ Telecommuting
Application of Motivation: Alternate Work Arrangements
■ Flextime, short for Flexible Work
Time
– Some discretion over when
worker starts and leaves.
– Employees must work a specific
number of hours per week but
are free to vary their hours of
work within certain limits.
■ Job Sharing
– Two or more individuals split a traditional job.
– It allows two or more individuals to split a traditional

40 hour a week job (5 Working Days).
First Person Second Person
8:00 a.m. to Noon 1:00 p.m. to 5:00 p.m.
Two Could Work Full but Alternate Days
■ Telecommuting
– Working from home at least two days a week on a

computer that is linked to the employer’s office.
– For example: telemarketers, customer service

representatives, reservation agents (these people
spend the majority of their time on computers)
Application of Motivation: Employee Involvement
■ A participative process that uses the input of employees and
is intended to increase employee commitment to an
organization’s success.
■ Engage workers in decisions that affect them and increase

their autonomy and control over their work lives, they will
become more motivated, more committed to the
organization, more productive and more satisfied with their
jobs.
■ Examples of Employee Involvement Programs:

– Participative Management
– Representative Participation
Participative Management:
■ Subordinates share a significant degree of decision-making
decision
power with superiors
■ Required conditions:
– Issues must be relevant
– Employees must have the competence and knowledge to
make useful contribution
– All parties must act in good faith
■ Outcome: Only a modest influence on productivity,
motivation, and job satisfaction
Representative Participation:
■ Workers participate in organizational decision making through a small
group of representative employees.
employees
■ The two most common forms are: Work Councils and Board
Membership
– Works Councils are groups of elected employees who must be consulted
when management make decisions about employees
– Board representatives are employees who sit on a company’s board of
directors and represent employees interests.
■ Outcome: These groups dominated by management.

Application of Motivation: Using Rewards to Motivate Employees
Bases a portion of the pay on a given measure of performance

– Piece-Rate Pay – workers are paid a fixed sum for each unit of
production completed
– Merit-Based Pay – pay is based on individual performance
appraisal ratings
– Bonuses – rewards employees for recent performance
– Skill-Based Pay – pay is based on skills acquired instead of
job title or rank – doesn’t address the level of performance
Application of Motivation: Using Rewards to Motivate Employees
■ Profit-Sharing Plans – It distributes compensation based on som

established formula designed around a company’s profitability.
■ Gainsharing – it is a formula based group incentive plan that us

improvements in group productivity
■ Employee Stock Ownership Plans (ESOPs) – plans in whic

employees acquire stock, often at below-market prices
■ Employee Recognition Programs-

Programs Employee of the month

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Organizational Behavior

■ A process by which individuals organize and interpret their

■ Organization: organize the information that your senses pick up.

■ Interpretation- Evaluation: Influenced by your experiences, needs,

■ Memory: our brain store this as a memory.

■ Recall: we can now recall this perceived memory anytime.

■ Employment Interview: Interviewers make perceptual judgments that are often

■ Performance Appraisal: Assessment of an employee’s performance very much

■ Employee Loyalty: While assessing employees, the managers als

■ Perceiver is the person trying to interpret some

■ Situation is the context in which perception takes

■ Target of perception is whatever the perceiver is

Factors in the situation

■ Motives: it reflects stimuli that cause to perform particular

■ Interest: state that power the force an attitude has towards

■ Experience: experience and knowledge serve as basis for

■ Motivation is the processes that account for an

■ Hierarchy of Needs Theory

■ Maslow’s Theory based on the Hierarchy of Human Needs

■ Under this theory, human needs fall into five fundamental

■ Physiological Needs are the basic needs for sustaining

■ Two factors are:

■ Satisfaction which is mostly affected by the

Employees Employees not

■ How expectancy theory relates to being a manager?

■ In other words, if people expect a positive and desirable

■ Expectancy theory is a motivation theory first

■ Vroom realized that employee’s performance based

■ Maslow and Herzberg concentrate on needs, but

■ Whereas Maslow and Herzberg look at the

3. Rewards-Personal Goals Relationship:

■ Job Characteristics Model

■ Alternate Work Arrangements

Skill Variety The degree to • Computer Science Engineer

Task The degree to • Medical Researchers

Job Enlargement (more Job Enrichment (more

■ Job Characteristics Model

■ Alternate Work Arrangements

– Two or more individuals split a traditional job.

– It allows two or more individuals to split a traditional

– Working from home at least two days a week on a

– For example: telemarketers, customer service

■ Job Characteristics Model

■ Alternate Work Arrangements

■ Engage workers in decisions that affect them and increase

■ Examples of Employee Involvement Programs:

■ Outcome: These groups dominated by management.

■ Job Characteristics Model

■ Alternate Work Arrangements

Bases a portion of the pay on a given measure of performance

■ Profit-Sharing Plans – It distributes compensation based on som

■ Gainsharing – it is a formula based group incentive plan that us

■ Employee Stock Ownership Plans (ESOPs) – plans in whic

■ Employee Recognition Programs-

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