CHPT: 1 A PRELUDE TO ORGANIZATIONAL BEHAVIOUR

What are organization?

• Often individuals, group of people, who believe that they possess the necessary skills and
knowledge, form an organization to produce goods and services. At times, several people form a
group to respond to a perceived need by creating an organization.
Why do organizations exist?
• To increase specialization and division of labour
• To use large-scale technology
• To manage the external environment
• To economise on transaction costs
• To exert power and control
Taken together, these five factors explain why more value can often be created when people work
together, coordinating their actions in an organized setting, than when they work alone.
Nature of Organizational Behaviour (OB)
• OB helps firm achieve effectiveness in their activities. OB helps harness skills and qualities from
people in the organization and use them for achieving organizational goals.
Common factors of OB:
• OB is the study of human behaviour
• The study is about Behaviour in organizations, and
• Knowledge about human behaviour would be useful in improving an organization’s effectiveness
Definitions of OB:
• “OB refers to the behaviour of individuals and groups within organizations and the interaction
between organizational members and external environments”
• “OB is a field of study that investigates the impact that individuals, groups and structure have on
behaviour within organizations for the purpose of applying such knowledge towards improving an
organization’s effectiveness.”
Foundations of OB
• Individual differences
• A whole person
• Caused behaviour
• Human dignity
• Organizations are social systems
• Mutuality of interest
• Holistic concept
• Need for management (planning, organizing, leading, controlling)
Why study OB?
• OB provides a road map to our lives in organization.
• The field of OB uses scientific research to help us understand and predict organizational life.
• OB helps us influence organizational events.
• OB helps an individual understand himself/herself and others better.
• A manager in a business establishment is concerned with getting things done through delegation.
• Maintaining cordial industrial relations.
• OB is useful in the field of marketing.
• Studying OB is helpful for those who wants to pursue a career in marketing.
• OB adds to the bottom line of the organization.
Shortcomings
• Failure on domestic front.
• OB hasn’t been widely useful to improve employee relations in organizational settings.
• OB is the product of capitalist societies, often seem as selfish and exploitative.
• OB doesn’t totally abolish conflict and frustration; it can only reduce them.
Contemporary OB
Three aspects of the OB:
• OB is interdisciplinary in focus
(Psychology, sociology, social psychology, anthropology, political science, engineering)
 • A particular set of concepts is accepted as defining the scope of OB
• OB assumes that there is no ‘one best’ answer to problem.
Scope of OB
• Intrapersonal behaviour (the individual)
(Personality, attitude, perception, learning, opinion, motivation, job satisfaction, stress management, etc.)
• Interpersonal behaviour (the group)
(Group dynamics, team dynamics, intergroup conflict, leadership, communication, transaction analysis, etc.)
• Organizations (formal organization)
(Formations, structures, effectiveness, formal and informal organizations)
Contextual perspectives of OB
• Human resource approach
• Contingency approach
• Systems approach
• Productivity approach
• Interactionalism
Evolution of OB
• Industrial Relation (IR)
• Scientific management
• The human relations movement
• Labour movement
• Hawthorne studies
• Organizational Behaviour
OB Model
 CHPT 2 MANAGEMENT AND MANAGERS
Functions of management
• Planning
• Organizing
• Leading
• Controlling
Manager’s roles
• Interpersonal roles
(Figurehead, leader, liaison)
• Informational roles
(Monitor, disseminator, spokesperson)
• Decisional roles
(Entrepreneur, disturbance handler, resource allocator, negotiator)
Types of managers
• First line managers
• Middle managers
• Top managers
What makes managers successful?
• The entrepreneurial instinct
• Determination and patience
• Able to see opportunities where other fail to identify
• Ethically conscious
• Not always focused on turnover and profits
• Team-builder
• Believes in strength and quality of collaborative relationships
• A successful manager is expected to possess self-worth or self-competency
Evolution of management theories
• Scientific management theory
• Administrative management theory
• Behavioral management theory
• Management science theory
• Organizational environment theory
Scientific management theory
• Taylor, 18th centaury
Four principles:
• Management should develop a precise, and scientific approach for each element of one’s work to replace general
guidelines.
• Management should scientifically select, train, teach, and develop each worker, so that the right person has the right
job.
• Management should co-operate with the workers to ensure that the job matches the plans and principles.
• Management should ensure an equal division of work and responsibility between managers and workers.
Merits of scientific management theory:
• Improved productivity and performance
• Scientific analysis of the workplace
• Linking wages to performance and enhanced earnings for workers
• Co-operation between management and workers got to be established
• Demonstrated the importance of personnel selection and training
Demerits of scientific management theory:
• Simplistic motivational assumptions
• Workers are treated as wheels in a machine
• Potential for exploitation of labour
• Interpersonal relationships and linkages between environment and organization ignored
• Did not acknowledge variance among individuals

Administrative theory
1. Max Webers Theory of Bureaucracy
Principles:
• Labour is divided with clear definitions of authority and responsibility that are legitimized as official duties
• Positions are organized in a hierarchy of authority, with each position under the authority of a higher one
• Rules and regulations determine and standardize behaviour
• Administrative acts and decisions are recorded in writing
• Management is separate from ownership in any organizations
2. Fayol’s Principles:
• Division of work
 • Authority
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interest to general interest
• Remuneration
• Centralization
• Scalar chain
• Order
• Equity
• Stability and tenure of personnel
• Initiative
• Esprit de corps
3. Behavioral management theory
• Human relations management
• Illumination studies
• The relay assembly room study
• The bank writing room study
• The human resources approach
• Behavioral science approach
• Management science approach
• Organizational environment approach
• The systems view
• The contingency approach
Indian contributions to management practices
• India is one of the oldest civilizations. Management is concomitant of the civilization. Management has been
practiced for 1000s of years in India.
• Mahabharata, Gita, Upanishads etc.
Contemporary trends in management thinking
• Investing and reinventing organizations
• Globalization
• Building management capabilities
(Organizational effectiveness and comparative performance, visionary and strategic leadership, performance leadership,
people leadership, organizational capabilities, innovation, external relationships, etc.)
• Mergers and Acquisitions (M&As)
• Diversity
• Ethically honest and socially conscious firm
• Innovation and creativity

CHPT3 OB – THE EMERGING CHALLANGES

Challenges faced by OB specialist
• Managing diversity
• Changed employee expectations
• Technology transformation
• Talent management
• Globalization
• Changing demographics of workforce
• Promoting ethical behavior and CSR
• Organizational justice
• Career management
1. Managing diversity
• Primary dimensions-
age, gender, sexual orientation, ethnic heritage, race, mental/physical abilities and characteristics.
• Secondary dimensions-
Cultural experience, work experience, income, religion, first language, organizational role and level, communication style, work style,
family status, education, geographic location.
Barriers to accept diversity
• Prejudice
• Ethnocentrism
 • Stereotypes
• Discrimination
• Harassment
• Sexual harassment
• Backlash
• Lack of cohesion
• Inaccurate information
How to manage diversity effectively
1. Increasing awareness
• Accurate information to members of the organization
• Uncovering personal biases and stereotypes
• Assessing personal beliefs, attitudes, and values.
• Improving understanding of others who are different than oneself
2. Increasing diversity skills
3. Cultural diversity
For individuals, when travelling abroad from work-
• Adapt culture
• Get to know others by roaming with them, rather than with one’s own nationality
• Develop friendships
• Learn another language
• Learn cultural differences and work accordingly
For companies and organizations-
• Encouraging employee
• Providing constant help
• Avoid malpractices
4. Gender diversity
• Male domination
• New generation
2. Career management
A typical career progress through five stages-
• Entry to the organization when the individual can begin the process of self-directed career planning
• Progress within particular areas of work
• Mid-career when people still hope to secure higher positions, while others have already got
• Later careers when people have settled in respective areas and are planning post-retirement life
• End of career in organizations; rehired, if physically fit and well or lead retired life dedicated to social and religious life
• Career planning
• Career development
• Career management
Roles for career management
Four stakeholders in career management
• Organization
• Manager
• OB specialist
• Employee
Career development initiatives
• Career planning workshop
• Career counselling
• Mentoring
• Sabbaticals
• Secondments
• Personal Development Plans (PDPs)
• Career workbooks
Talent management
• Talent management is understood as the process of attracting, developing, retaining and deploying the best people.
Talent management initiatives:
• Invest in talent management
• Talent driven culture
• Talent audit
• Role design
• Talent relationship management
• Performance management
• Learning and development
• Succession planning
• Resourcing strategy
• Coaching
Globalization
Globalization/ internationalization of business presents at least four challenges:
• Globalization affects an increasing number of managers and professionals
• Internationalization puts a premium on certain competencies or skills
• Managerial learning is a critical process in internationalization
• Management of careers in the context of globalization brings about peculiar difficulties in many companies
Technology transformation
• Linear organizations
 • Wired organizations
• Virtual offices
• Changing nature of management work
Organizational justice
• Distributive justice
• Informational justice
• Procedural justice
• Interpersonal justice

CHAPTER 4 ETHICS AND SOCIAL RESPONSIBILITIES

Sources of business ethics
• Religion
• Culture
• Legal system
Importance of ethics Ethical dilemmas
- Ethics correspond to basic human needs
• Ethics create credibility
• Values give management credibility with employees
• Better decision making
• Ethics and profit
• Stakeholder’s demands
• Law can’t protect, but ethics can
• Ethics and investors
• Ethics and customer satisfaction
Ways of managing ethics
• Reporting channels
• Risk analysis and management
• Ethics manager/ committee
• Ethics consultant
• Special accounts
• Stakeholder consultation
• Individual characteristics
• Corporate culture
• Whistle-blowing
• Top management
• Code of ethics
• Training programmes
• Ethics and law
• Vision statements
• Others
Social responsibility
• Also known as Corporate social responsibility (CSR)
• CSR is understood as the obligation of decision makers to take actions that protect and improve the welfare of society as a whole
along with their own interests.
• The social actions which a firm undertakes in the name of its CSR occur ‘beyond the factory gate’ and will benefit the society in
general. A healthy society needs successful corporations.
• All in all, CSR is not inspired by self-interest, but interest of the organization and society in general.
Corporate social responsibility (CSR)
Arguments for CSR
• Changed public expectations of business
• Better environment for business
• Balance of responsibility with power
• Business has the resources
• Prevention is better than cure
• Moral responsibility
• Globalization
• Better employees
Arguments against CSR
• Profit maximization
• Society has to pay the cost
• Lack of social skills
 • Business as enough power
• Social overhead cost
• Lack of accountability
• Lack of broad support
• Friedman and Levitt’s views

CHPT 5 FOUNDATIONS OF INDIVIDUAL BEHAVIOUR

Foundations of individual behaviour
Personal factors
• Age
• Sex
• Education
• Ability (Intellectual ability, Physical ability, Ability job-
fit)
• Marital status
• Number of dependents
• Creativity
(Background experience, personal traits, cognitive abilities)
• Emotions and emotional intelligence
(Mood, Impact on performance, Emotional Intelligence)
Components of emotional intelligence:
Emotional attainment/ self-awareness
Emotional management
Using emoticons
Self-motivation
Environmental factors
• Economic factors
• Cultural environment
• Ethics and social responsibilities (CSR)
• Political factors
Organizational systems and resources
• Facilities
(Lighting, Ventilation, Air conditioning, Décor, Personal spacing, Equipment etc.)
• Organizational structure and design
• Leadership
(Assistance, Advice, Coaching, etc.)
• Reward system
• Work related behaviour
Joining the organization
Remaining with the organization
Maintaining work attendance
Performing required tasks
Exhibiting organizational citizenship
(Forms of OCB: Altruism, Consciousness, Civic value, Sportsmanship, Courtesy)
Models of individual behaviour
• Theory X and Theory Y model
• Economic and self-actualizing model
• Behavioristic and Humanistic model
• Rational and Emotional model
• MARS model (Motivation, Ability, Role perception, Situational factors)

CHPT 6 INTELLIGENCE
Intelligence
• In general, intelligence is understood as the cognitive process of reasoning and understanding.
• It is defined as; an ability to adapt to a variety of situations both old and new; an ability to learn; and an ability to employ abstract
concepts; and to use a wide range of symbols and concepts.
• Intelligence always refers to the property of mind.
Types of intelligence
• Cognitive intelligence
- Verbal comprehension, reasoning, word fluency, numerical ability etc.
• Practical intelligence
- ‘Know-how’
• Emotional intelligence (EI)
- Self awareness
- Self management
- Social awareness
- Relationship management
Theories of intelligence
1. SPEARMAN’S G FACTOR THEORY
 • According to Spearman, intelligence are two different abilities i.e. General Intelligence and Specific Intelligence.
2. GARDNER’S MULTIPLE INTELLIGENCE THEORY
• Gardner believed that individuals don’t have one single intelligence, but the mind has many types of intelligence.
• Only one or two types of intelligence are dominant in an individual.

…
3. STERNBERG’S TRIARCHIC THEORY
Triarchic refers to three. Accordingly, these three are intelligence types given by Sternberg.
• Analytical intelligence
• Creative intelligence and
• Practical intelligence
Measurement of intelligence
• Psychologists have devised tests to measure general intellectual abilities of people. These tests are called as intelligence tests.
The most widely used tests are…
• Binet and Simon test
• Stanford Binet intelligence scale
• Wechsler intelligence scale
• Group tests
1. BINET AND SIMON TEST
Binet and Simon thought that intelligence should be measured by tasks and required reasoning and problem-solving skills, rather than
perceptual-motor skills. The test required the child to execute following…
• Follow the simple command/ initiate simple gestures
• Name objects shown in the picture
• Repeat a sentence of fifteen words
• Tell how two common objects are different
• Complete sentences begun by the examiner
…contd.
2. STANFORD-BINET SCALE
• Binet and Simon’s test became widely accepted, revised and adapted for use in the US by Lewis Terman, a psychologist at
Stanford University.
• He added verbal reasoning, quantitative reasoning, abstract visual reasoning and short term memory as types of reasoning.
• The test became widely accepted because it yielded a single score assumed to reflect an individual’s level of intelligence. This
single score is known as Intelligence Quotient (IQ).
…contd.
• IQ represents a numerical value that reflects the extent to which an individual’s score on an intelligence test departs from the
average for other people of the same age.
• To obtain IQ, an examiner divides a student’s mental age by his or her chronological age, then multiplies by 100. here, mental
age is based on the number of items a person passes correctly on the test.
…contd.
3. WECHSLER SCLAES
• Earlier tests failed to check the non verbal activities. To overcome Stanford-Binet test’s this shortcoming, David Wechsler
divided the sets of both children and the adults tat included non verbal or performance based items as well as verbal ones, to
yield separate score for those two components of intelligence and overall IQ score.
• Test for adults is called ‘Wechsler Adult Intelligence Scale’ (WAIS)
• Test for children is called ‘Wechsler Intelligence Scale for Children’ (WISC)
 •
4. GROUP TESTS OF INTELLIGENCE
• Unlike other tests, this test can be administered within a group of people.
• A few examples of group tests are; Otis tests, Herman-nelson tests, Cognitive abilities test etc.
Factors influencing intelligence
• Environment
Environmental deprivation
Confluence theory
• Heredity
Ratio of brain weight to body weight
• Age
Intelligence and OB
• Intelligence is an important input in determining behavior of an individual.
• It seeks to explain how people are able to adapt their behavior to the environment in which they live.
• Intelligence tests are extensively used while hiring people. Google, for instance, is obsessed with tests!

CHPT 7 PERSONALITY
Nature of personality
• Personality refers to a set of traits and behaviors that characterize an individual.
Elements of personality;
• Internal and external elements
• An individual’s personality is relatively stable
• Personality is both; inherited and shaped
• Each individual is unique in behaviour
The shaping of personality
How personality is developed from its infant stage to grown0up stage, is described by four psychologists and their theories.
• Freudian stages
• Erickson’s stages
• Jean Piaget’s stages
• Chris Argyris
Freudian Stages
• Sigmund Freud, psychologist. First one to create meaningful theory.
• Stages:
1. The oral stage (0-1 year)
2. The anal stage (1-3 years)
3. The phallic stage (3-4 years)
4. The latency stage (4-6 to adolescences)
5. The genital stage (Adolescences to adulthood)
Erickson’s Stages/ Neo-Freudian Stage
Jean Piaget’s theory/ Cognitive stages

Chris Argyris/ Immaturity to Maturityy

Determinants of personality
• Heredity
• Environment
• Contribution from the family
• Socialization process
• Situational considerations
Personality structure

Big 5 personality

Myers-Briggs Indicator
OB related traits
• Authoritarianism
• Locus of control
• Machiavellianism
• Introversion-Extroversion
• Achievement orientation
• Self-esteem
• Risk-taking
• Self-monitoring
• Type A & Type B personality
Personality and OB
• Understanding personalities is important because personality impacts behaviour, as well as perception and attitudes. Personality
types also affect human relations and retaliation. People with similar personality types get along ell at work, while opposites do
not, though there are exceptions.
• Personality profiles are used to categories people as a means of predicting job performance. (For e.g., Big 5 personality traits)

CHPT 8 PERCEPTION AND ATTRIBUTION

Perception: Meaning and Definition
• In simpler words, perception is understood as the act of “seeing what is there to be seen”.
• “The study of perception is concerned with identifying the processes through which we interpret and organize sensory
information to produce our conscious experience of objects and object relationship.”
• Perception includes all those processes by which an individual receives information about the environment- seeing, hearing,
feeling, tasting, and smelling. The study of these perceptual processes shows that their functioning is affected by three classes of
variables: the objects or events being perceived, the environment in which perception occurs, and the individual doing the
perceiving.
Factors influencing perception

Perceptual process

Perceptual organization
 • Ambiguous figures
• Figure background
• Perceptual grouping
• Similarity
• Proximity
• Closure
• Continuity
• Area
• Perceptual constancy
• Size constancy
The process of interpreting
• Perceptual set
• Attribution
• Stereotyping
• Halo effect
• Perceptual context
• Perceptual defence
• Implicit personality theory
• Projection
Attribution theory

Rules of attribution
• Distinctiveness
• Consistency
• Consensus
When perception fails
Biases affecting perception
• Frame of reference
• Stereotypes
• Expectations
• Projection
• Interest
• Selective exposure
Perception and OB
Self-fulfilling prophecy

Managing the perception process

• Have a high level of self awareness
• Seek information from various sources to confirm or disconfirm personal impression of a decision situation
• Be empathetic
• Influence perceptions of other people when they are drawing incorrect or incomplete impressions of events in the wrong setting
• Avoid common perceptual distortions that bias our views of people and situation
• Avoid inappropriate attribution
• Diversity management programmes
Social perception
• Social identity

CHPT 9 LEARNING
Meaning and definition
Component of learning:
• Learning involves change.
• Not all changes reflect learning.
• Learning is reflected in behaviour.
• The change in behaviour should occur as a result of experience, practice, or training.
• The practice or experience must be reinforced in order for learning to occur. If the reinforcement does not accompany the
practice or experience, the behaviour will eventually disappear.
Definition of learning:
• Learning may be defined as “A relatively permanent change in behaviour that occurs as a result of prior experience.”
• “Generally, learning is described as the process of having one’s behaviour modified, more or less permanently, by what he does
and the consequences of his action, or by what he observes.”
• “Learning can be defined as a relatively permanent change in behaviour potentially that results from reinforced practice or
experience.”
…contd.
Learning:
• Explicit knowledge
(Is acquired through observation and direct experience)
• Tacit knowledge
(Is the idea that one knows more than what he/she can tell. Also known, Implied Knowledge)
How learning occurs?
Four theories which explain how learning occurs:
• Classical conditioning
• Operant conditioning
• Cognitive theory
• Social learning theory
Classical conditioning
• Classical conditioning is based on the premise that a physical event- termed as a stimulus- that initially does not elicit a particular
response gradually acquires the capacity to elicit that response as a result of repeated pairing with a stimulus that can elicit a
reaction.
• Ivan Pavlov, early 20th centaury

Operant conditioning
• Operant conditioning, also known as instrumental conditioning refers to the process that our behaviour produces certain
consequences and how we behave in the future will depend on what those consequences are. If our actions have pleasant effects,
then we will be more likely to repeat them in the future; and vise versa.
• Thus, according to this theory, behaviour is the function of its consequences.
Difference between classical conditioning and operant conditioning
1. Difference in type of response
2. Difference in consequences of response
Classical Operant
Responses are elicited from a person Responses are emitted by a person
Responses are fixed to stimulus Responses are variable in degrees
Cs is stimulus such as sound/ object CS is a stimulus such as situation
Reinforcement is not received by choice Reinforcement by ‘operating’ in env.
Cognitive theory of learning

Social learning theory

Principles of learning
1. Motivation
2. Reinforcement, punishment, and extinction
Types of reinforcement:
• Positive-Negative reinforcement
• Primary-Secondary reinforcement
• Schedule of reinforcement: Fixed Interval-Variable interval-fixed ratio schedule-Variable ratio schedule reinforcement
3. Whole vs part learning
4. Learning curves
5. Meaningfulness of material
6. Learning styles
• Accommodator
• Diverger
• Converger
• Assimilator
Learning and OB
• Stimulus generalization in organization
• Stimulus discrimination in organization
• Learning and training
• Learning though feedback
• Employee indiscipline