OB

1. Organizational behavior is the study of how people act, think, and feel in organizational
settings in order to improve organizational profit.

2. How industry 4.0 is challenging for managers?

- HR - Managers might find it difficult to find people with the right skills and developing the right skills in
people.
- Planning- They would have to face challenges in terms of robots replacing humans.
- Leadership- The new workers might not be able to learn the new changes in technology which could reduce
productivity.
- Strategies – Modified strategies are required to form for businesses to adapt.
3. Decision Making
- It involves selection of aa option from two or more alternatives in order to arrive at a solution for a given
problem.
Importance:
o How resources are utilized - With proper decision-making skills, resources can be used in the most
efficient and profitable way possible.
o Employee job satisfaction and motivation - By committing to making good decisions, you are giving
your employees the opportunity to trust in their leaders and know that the work they do is valuable.
o Achievement of goals - Making good decisions in the workplace can positively contribute to the
achievement of organizational goals and objectives.
o Company culture - effective decision making in the workplace can allow employees to feel secure in
their positions.
o Growth of an organization – good decision making can help the company frow and bring future
opportunities for growth.
- Errors
o Overconfidence Bias – Person might get overconfident of the situation and make wrong decisions.
o Anchoring Bias – When a person places too much importance on one piece of information and fails
to consider other important options required for decision making.
o Selective Perception - This is the tendency to see a
particular situation or issue from a chosen
perspective.
o jAvailability Bias – This is the tendency to act on
immediate information or situation that comes to
one’s minds, so the person stops for looking
additional information.
o Randomness Bias – This is the tendency to see a
pattern in random data. Depend on unrealistic
data.
4. Motivation Theories
- Maslow’s Hierarchy of Needs : Maslow said that people
are motivated when their needs are met. Once our basic
needs and wants are met, we are motivated to do more.
 - Herzberg’s Two Factor Theory - This theory consists of two parts-
o Hygiene factors such as working conditions, pay and job security ensure that employees are
satisfied.
o Motivational factors, such as recognition, responsibility and opportunities for growth, ensure that
people are encouraged to improve their performance.
o Herzberg believed that organizations must maintain a healthy balance between the two in order to
be successful.

- McClelland’s Theory of Needs - David Clarence McClelland, an American psychologist, proposed three
motivational drivers that influence our life experiences.
o Need For Achievement – They want to win and receive credit.
o Need For Power – They want to have authority and influence over others.
o Need for affiliation – They want to have social and interpersonal communication with others

- McGregor’s X and Y Theories

o Theory X and Y models categorize employees as belonging to one of two groups based on two sets
of assumptions.
 Theory X assumptions take a negative perspective of people: They don’t like to work, avoid
responsibilities, have no ambition.
 Theory Y assumptions take the opposite view: They are dedicated, like to work, skilled and
talented.
- The Equity Theory
o The input of employees will depend on what output they get from the job. They will work better if
they get more incentives and salary.
- Vroom’s Expectancy Theory
o Expectancy theory suggests that individuals are motivated to perform if they know that their extra
performance is recognized and rewarded. This theory is dependent on how much value a person
places on different motivations.

5. Group and Team

a. Group
i. Two or more individuals coming together to achieve a particular objective.
1. Formal Group – Structured Eg- 6 members from airline flight crew.
2. Informal Group – Unstructured Eg – Members from different organizations having lunch
together.
ii. 5 stages of group development
1. Forming- Orientation and getting to know each other.
2. Storming – Employees get to know each other. Conflict stage.
3. Norming – Unity among people. Leader emerges.
4. Performing - The team is focused on problem solving and meeting team goals.
 5. Adjourning – Goals are achieved. Wrap up.
iii. Properties
1. Role – Expected behavior when someone takes a position.
2. Norms – Acceptable Behavior
3. Status – Social rank of a person
4. Size – Size of the group can affect behavior. Smaller groups can perform faster.
5. Cohesiveness – Motivation of a person to stay in the group.
6. Diversity – Degree to which the members are similar/different to each other.

A group is a collection of individuals who coordinate their efforts, while a team is a group of people who
share a common goal.

b. Team
i. Types
1. Problem solving teams - Problem-solving teams are assembled temporarily. They are
usually brought together in case of a crisis or an unplanned event. They can only make
suggestions.
2. Self Managed work teams - Self-managed teams have no managers or leaders. The team
members, themselves are responsible for the decisions and working.
3. Cross-functional team - Members are picked from various departments at the same
level for problems that require an expertise in different areas.

Understanding Organizational Culture

- Organizational culture is the expectations of the business. These are unwritten rules that dictate the attire,
work ethic, and overall structure of the business. A new employee will often have to learn and follow these
rules to fit into a business and its culture. Consider it the personality of the business. This culture sets the
standards for the workplace and affects how the employees are expected to act.

- Organizational culture might include the following:

o Commonly shared beliefs.
o Values that dictate the employees' behaviors.
o Agreed upon assumptions.

Most organizations have a unique culture that sets them apart from other businesses. These unspoken culture rules
affect the employees, managers, and owners of the business.
Understanding Organizational Structure

- Organizational structure, on the other hand, is the legal structure of the business. The organizational
structure might include the following:

- The method in which you register your business.

o The formal system of roles and authority within the business.

o The organizational chart.
o The policies and methods used to assign manager tasks.
o The hierarchy structure.

Emotional labor is the process of managing feelings and expressions to fulfill the emotional requirements of a job. More
specifically, workers are expected to regulate their emotions during interactions with customers, co-workers and
managers.

Ways to deal with emotional labour:

- Stay calm
- Recognize others efforts
- Form groups to share emotions
- Manage Boundaries
- ng term

Job Attitude – It includes a person’s feelings, beliefs and attachment to his or her job.

The main types of job-related attitudes are:

- Job Satisfaction - Job satisfaction means a person’s positive emotions about his job.
- Job Involvement - Job involvement refers to how closely an individual is linked with his or her job, how
active he or she engages in it.
- Organizational Commitment - Commitment is about giving a hundred percent. Organizational commitment
means a high level of loyalty of employees towards their organization.

Facts about conflict

- Conflict and negotiation in the workplace takes place when individuals have different ideas, beliefs or
theories regarding business operations. Business owners may also find conflict when bargaining with
individuals or other businesses. Acquiring economic resources or other business assets often involves
bargaining.
-
- Negotiation is the process of discussing each individual’s position about a topic and attempting to reach a
solution that benefits both parties. Conflict and negotiation are usually more prevalent in larger business
organizations since more individuals are involved in the company's operations.

Power, Politics

Power is the ability to influence the behavior of others to get what you want.
 Organizational Politics - The activities, attitudes, or behaviors that are used to get or keep
power or an advantage within a business or company.
Distracts the employees but also effective in handling tricky situations.
Strategies For Managing Organizational Politics

- Reduce Uncertainty In The Workplace

- Promote Collaborative Working
- Keep Your Ear To The Ground
- Be A Good Role Model
- Be Transparent
- Don’t Have Favorites
- Zero Tolerance Of Destructive Organizational Politics
- Intervene When Necessary

Personality

Personality traits are characteristics and qualities that help define you as a unique individual. They’re often
developed throughout life and may remain consistent across many situations and circumstances.

This five-factor model—also known as the OCEAN model—assumes that each category exists as a spectrum.

Big 5 Personality Traits

Openness Conscientiousness Extroversion Agreeableness Neuroticism

Measures how Represents how

Represents Refers to an energetic, Refers to how an much someone
how willing a individual's desire to outgoing and individual is inclined to
person is to be careful and diligent confident a interacts with experience
try new person is others negative
things emotions

Employee Well being : In short, employee wellbeing is the way employees' work, expectations, workplace affects their
overall health and happiness.
What is emotional intelligence or EQ?

Emotional intelligence (otherwise known as emotional quotient or EQ) is the ability to

understand, use, and manage your own emotions in positive ways to relieve stress,
communicate effectively, empathize with others, overcome challenges and defuse conflict. 

Emotional intelligence helps you build stronger relationships, succeed at school and work,
and achieve your career and personal goals. It can also help you to connect with your
feelings, turn intention into action, and make informed decisions about what matters most to
you.
Stress
Stress can be defined as any type of change that causes physical, emotional, or psychological strain. Stress is
your body's response to anything that requires attention or action. 

Emotional intelligence is commonly defined by four attributes:

1. Self-management – You're able to control impulsive feelings and behaviors,

manage your emotions in healthy ways, take initiative, follow through on
commitments, and adapt to changing circumstances.
2. Self-awareness – You recognize your own emotions and how they affect your
thoughts and behavior. You know your strengths and weaknesses, and have self-
confidence.
3. Social awareness – You have empathy. You can understand the emotions, needs,
and concerns of other people, pick up on emotional cues, feel comfortable socially,
and recognize the power dynamics in a group or organization.
4. Relationship management – You know how to develop and maintain good
relationships, communicate clearly, inspire and influence others, work well in a team,
and manage conflict.