OB1 2022 Sent

ORGANISATION
BEHAVIOR I
Prof Kajari Mukherjee
BEHAVIOR
Behavior: The way one acts or conducts oneself in
response to stimuli.
One’s behavior is multi-determined and multi-

motivated process……
Contingency approach – a perspective suggesting that
organisational behavior is affected by a large number
of interacting factors. How someone will behave is
contingent on many different variables at once.
Systematically reinforcing each successive step that
moves an individual closer to the desired response
(OB modification)
Prof Kajari Mukherjee/ OB&HRM 2
Systematically reinforcing each successive step that moves an
individual closer to the desired response (OB modification)
Shape Behavior
•
Positive reinforcement Negative reinforcement

principles improves principles to discourage
organization functioning undesirable behavior
Practice Test
1. Reward and Recognition schemes, 1. Discipline related,

2. Incentive schemes, 2. Norms, Rules & Regulations
3. Various data-based performance 3. Convert –ve to +ve
improvements reinforcements & benefits

Anchors
Systematic research OB should study organizations using

anchor systematic research methods
Multidisciplinary OB should import knowledge from other

anchor disciplines, not just create its own
knowledge
Contingency anchor OB theory should recognize that the

effects of actions often vary with the
situation
Multiple level of OB events should be understood from

analysis anchor three levels of analysis: individual, team,
organisations

Contributing Disciplines
Measure,
explain &
• sometime
change
behavior of
humans
People’s
relation to Study societies to
social learn about human
environment beings and
or culture Focus on activities
people’s
influence
on one
another

Intuition and Systematic Study
• Gut feelings
Intuition • Individual observation
• Common sense
Systematic • Looks at relationships

Study (cause- • Scientific evidence
effect) • Predicts behaviors
Use evidence as much as possible to inform your intuition and

experience. That is the promise of OB. 6
Prof Kajari Mukherjee/ OB&HRM
Types of Study Variables
Independent (X) Dependent (Y)
• The presumed cause of • This is the response to X
the change in the (the independent
dependent variable (Y). variable).
• This is the variable that • It is what the OB
OB researchers researchers want to
manipulate to observe predict or explain.
the changes in Y. • The interesting variable!
X Y Predictive Ability
Eg, Hawthorne studies

Interesting OB Dependent Variables: work
outcome variables
• Productivity
• Transforming inputs to outputs at lowest cost. Includes
the concepts of effectiveness (achievement of goals)
and efficiency (meeting goals at a low cost).
• Absenteeism
• Failure to report to work – a huge cost to employers.
• Turnover
• Voluntary and involuntary permanent withdrawal from an
organization.
• Deviant Workplace Behavior
• Voluntary behavior that violates significant organizational
norms and thereby threatens the well-being of the
organization and/or any of its members.

More Interesting OB Dependent Variables
• Organizational Citizenship Behavior (OCB)

• Discretionary behavior that is not part of an
employee’s formal job requirements, but that
nevertheless promotes the effective functioning of
the organization (eg, covering for a sick colleague,
noticing a flaw in work process).
• Job Satisfaction
• A general attitude (not a behavior) toward one’s
job; a positive feeling of one's job resulting from an
evaluation of its characteristics.

Management Roles
• Discovered ten managerial roles – sets of behaviors in

their work
• Separated into three groups:

➢ Interpersonal
➢ Informational
➢ Decisional

Mintzberg’s Managerial Roles: Interpersonal
Symbolic head – required

to perform routine duties of
a legal or social nature
Figurehead
Maintains a network of
outside contacts who
provide favours and
information
Leader Liaison
Provides motivation and

Direction of employees;
hiring and disciplining
Mintzberg’s Managerial Roles: Informational
Serves as a nerve center

of internal and external
Monitor
information
Transmits information from
outsiders or from other
employees to others inside
Spokesperson Disseminator
Transmits information Informational Roles

to outsiders on plans,
policies, actions & results

Mintzberg’s Managerial Roles: Decisional
•Searches organisation and

environment for opportunities
& initiates projects to bring Entrepreneur
about change Corrective action when
organisation faces important,
unexpected disturbances
Disturbance
Negotiator
handler
Responsible for
Representing the
organisation at
major negotiations
Resource allocator
Makes or approves
significant organisational
decisions
Values, Attitudes and behavior

Beliefs and Values
➢Beliefs: what ‘is’ known about the world (eg, life after
death, walking under ladder brings ill luck)
➢Values: what should be and what is desirable
Basic convictions on how to conduct yourself or how
to live a life that is personally or socially preferable –
“How To” live life properly.
Viewed as a conception, explicit or implicit, of what
an individual or a group regards as desirable, and in
terms of which he or they select, from among
alternative available modes, the means and ends of
action. Judgemental Element

Generational Values

Attitudes
• Evaluative statements or judgments concerning objects,

people, or events
Three components of an attitude:
I don’t like lazy people
The emotional or
Affective
Cognitive
feeling segment
The opinion or of an attitude
belief segment (feeling)
Behavioral
of an attitude
(evaluating) An intention to
behave in a certain
way toward someone
Attitude or something (action)
I try to avoid boss when I can
Does Behavior Always Follow from Attitudes?
• Leon Festinger – No, the reverse is sometimes true!

• Cognitive Dissonance: Any incompatibility between two or
more attitudes or between behavior and attitudes people
who will change what they say so it doesn’t contradict their behavior.
• Individuals seek to reduce this uncomfortable gap, or dissonance,
to reach stability and consistency
• Consistency is achieved by changing the attitudes (CHANGE),
modifying the behaviors (CHANGE) , or through rationalization
(DENY)(deny any linkage of smoking and health or brainwash
about benefit of smoking or rationalise benefits) or AVOID
• Desire to reduce dissonance depends on:
• Importance of elements creating it (eg bribe taking)
• Degree of individual influence in the situation (eg, it is institutionalised)
• Rewards involved in dissonance (eg, reward here is great)

Predicting Behavior from Attitudes
• The more frequently expressed an attitude, the
better predictor it is (attitudes that our memory can
access easily – so talk more about it…if you want to
shape your behavior)
• The more tightly related the attitude is to values we
hold dear, the stronger the relationship will be to the
behavior.
• High social pressures reduce the relationship and
may cause dissonance but social pressures to
behave in certain ways hold exceptional powers (eg,
executives in ENRON).
• Attitudes based on personal experience are stronger
predictors.

PERCEPTION

Environment is complex
➢The ‘simplified’ model is likely to be:
➢Categorical thinking – organising people or objects in
pre-conceived categories stored in long term memory to
achieve closure.
➢ Mental models: broad world views or “theories-in-use”
that people rely on.
➢ Selective Attention: Filtering information received by
our senses; perceivers expectations and innate drives also
adds to it.
Source: McShane & Glinow 2007: 45-46

Perceptions and Emotions
➢Perception - Process through which we assign meaning
to the world around us
➢Nothing but simplified models that we construct to
deal with environment complexity
➢We decide what to notice, how to categorise this
information, and how to interpret within the framework of
our existing knowledge
➢The world as it is perceived is the world that is
behaviorally important.

Factors That Influence Perception
Perceiver:
- Attitudes
- Motives
Oragnisation - Interests
and arrangement - Experience
Situational Factors: - Expectations
of stimuli
- Time
- Work setting: Role
Perception
- Social setting
Perceived:
- Novelty
Pattern
- Background of behavior
Stimuli Selection of - Proximity
- Similarity
from the stimuli: Logic and meaning- Size
environment Screening or to the individual- Reputation
filtering

Influencers in perception
• Accuracy of perception is influenced by:

• Nature of situation, perceiver and perceived
• Nature of relationship between the perceiver and the
other person
• The amount of information available to the perceiver
and the order in which the information is received
• The nature and extent of interaction between the two
people

Attribution
➢Attribution – The process through which individuals

attempt to determine (that is, judge) the causes behind
their own and others’ behavior
➢Correspondent Inferences - based on one evidence.

Judging disposition based on behavior:
I have seen an action and come to judgement about his
disposition, traits and characteristics

Attribution
▪Causal Attribution: Asking the question “why”?

➢Internal causes of behavior: explanations based on
actions for which the individual is responsible
➢External causes of behavior: explanation based on
situations over which the individual has no control
To know if the action is caused due to internal or
external factors :
Consensus: others behave in same manner
Consistency: does he behave in same fashion in
other such situations
Distinctiveness: does he behave in same fashion
in other contexts

Systematic Biases in attribution
People are not equally predisposed to reach judgement

regarding internal and external causality.
➢Self serving bias: Tendency to attribute external causes for

our failures and internal causes for success.
➢Fundamental attribution error: Tendency to attribute
internal causes when focusing on someone else’s behavior.

Perceptual biases:
➢Selective perception:
➢See based on their own interests, background,
experience and attitudes.
➢Focus on some aspects of the environment while
ignoring others.
➢Similar-to-me effect:
➢Perceive people positively who are believed to be
similar to the perceiver:
➢eg, work values and habits, belief about the way
things should be done, similarity to demographic
variables, etc.

• ➢Halo / Horn effect:
➢Draw a general impression about a person based on a
single characteristic like appearance, sociability, etc.
➢Self – fulfilling prophecy (Pygmalino/Golem effect):

➢Expectations about another person cause that person
to act in a way that is consistent with those
expectations.
➢Stereotyping:
➢Judging someone based on one’s perception of the
group to which that person belongs.

➢Contrast effect:
➢evaluations of a person’s characteristics that are
affected by comparision with other people recently
encountered who rank higher or lower on the same
characteristics.
➢First Impression error:
➢Tendency to base judgement of others on our initial
impressions of them.
➢Projection:
➢attributing one’s own characteristics to other people.
➢Project one’s own undesirable personal
characteristics on others.
➢Project one’s own feelings on others.
Decision Making
Cognitive biases
• Overconfidence Bias
– Believing too much in our own ability to make good decisions,
especially when outside of own expertise – we are far too much
optimistic
• Anchoring Bias
– Using early, first received information as the basis for making
subsequent judgments – fixated with initial info.
– In other words, initial data or reference points have too much
influence on the final estimates or choices that we make.
• We also get anchored to irrelevant data presented….
• Confirmation Bias
– Selecting and using only facts that support our decision (to
reaffirm past choices) (we see what we want (or expect) to see)
Prof Kajari Mukherjee, OB & HRM 31

Decision Making
Cognitive biases (more…)

• Availability Bias
– Emphasizing information that is most readily at hand:
• Availability: Vividness and recency (ease of recall of instances
of an event) tend to make us overestimate its likelihood.
• Randomness Error
– Creating meaning out of random events – stitch together random
events(eg, superstitions)
• Risk Aversion
– The tendency to prefer a sure gain of a moderate amount over a
riskier outcome, even if the riskier outcome might have a higher
expected payoff
• Hindsight Bias
– After an outcome is already known, believing it could have been
accurately predicted beforehand

Decision Making
Guarding Against Biases

✓ Be aware of cognitive biases (built-in heuristics)
✓ Adopt multiple perspectives
✓ Act as Devil’s Advocate: Question assumptions, check inferences
✓ Consider the improbable or the unpopular
✓ Make incremental decisions: Collect feedback, use real options

approach
✓ Use probability and statistics
✓ Use frameworks and models: Derived from theory or developed by

experts

Emotions and U

Emotion vs Mood
• Emotion: Intense feeling that is directed at someone or
something
• Emotions are a natural part of a individual’s makeup.
• Spread of emotions is contagious
• Expression of emotions is universal
• Culture determines how and when people express emotions:
DISPLAY RULES
• Mood: Feelings that tend to be less intense than
emotions, last longer and donot have contextual stimulus.
• Expressing emotions appropriately: Timing, Context,
Extent

Types of labour
Emotional labour: the effort, planning and
control needed to express organisationally
• Physical labour desired emotions during interpersonal
Transactions. ABIDE BY DISPLAY RULES!
• Mental labour : cognitive capabilities
• Emotional labour : when an employee expresses
organisationally desired emotions during interpersonal
transactions
• Felt emotion: your actual emotion
• Displayed emotion: emotion that you are required
to display
• Intensity
• Frequency
• Duration

Emotional Intelligence

Emotional Intelligence
• For star performers, two thirds of their abilities are based on

EI, rest on technical expertise and raw intelligence.
• People with high degree of EI outperform others, even if
their IQ is less.
• IQ can’t be changed, but EI can be consciously developed.
• Plasticity of brain allows EI to be cultivated.

Definition
The ability to detect and to manage emotional cues and information
• EI refers to the ability to monitor one’s own and others’

feelings and emotions, to discriminate among them and to
use this information to guide one’s thinking and actions.
(Salovey & Mayer: 1990: 189)
• Five dimensions:
➢ Self awareness: aware of what you are feeling
➢ Self management: to manage emotions & impulses
➢ Self motivation: persist in the face of setbacks & failures
➢ Empathy: to sense how others are feeling
➢ Social skills: to handle emotions of others
The capacities to create optimal results in your

relationships with others – EI

The Five Dimensions
- Empathy - Emotional Self

- Listener Self Awareness
- Attuned to Empathy
Awareness - Accurate Self
feelings Assessment
Feeling for others Introspection
- Coaching - Self Confidence
- Service
Orientation EI - Self Control
- Mood Maker
- Inspirational - Consciousness
leadership Social Skills - Transparency
Self - Trustworthiness
- InfluenceAbility to make friends with a purpose
Management - Initiative
- Change catalyst - Optimism
Delay of gratification
- Achievement
- Conflict Management - Performance Decisive life skill Orientation
Motivation Orientation
- Adaptability
- Perseverance anger, anxiety,
Persistence sadness
Why is EI important?
• Decision making: Rational as well as intuitive

• Motivation : Employee engagement
• Leadership : Charging up people
• Interpersonal conflict : Getting people work through their
conflicts
• Deviant workplace behavior : Linked to negative emotions

Personality and U

Personality
➢Enduring characteristics that influence an individual’s

behavior (personality traits)
➢Relatively enduring pattern of thoughts, emotions and
behaviors that characterize a person, along with the
psychological processes behind those characteristics.
➢Sum total of ways in which an individual reacts and interacts
with others (observable patterns of behavior)
➢Generally, it is considered to be stable and consistent.
➢Usually described in terms of the measurable traits a person exhibits.
➢Dynamic concept describing the growth and development of a

person’s whole psychological system; it looks at some aggregate
whole that is greater than the sum of the parts.

Personality stabilises with time
• Personality development and change happens mainly until

young adulthood; it stabilises by the time people reach 30;
although some changes may continue to age 50.
• Reason being that we form a clearer and a more rigid self
concept as we get older. This increasing clarity of “who we
are” serves as an anchor for our behaviour because the
executive function – that part of brain which manages
goal-directed behaviour- tries to keep our behaviour
consistent with our self concept.

Heredity sets the outer limit, but an individual’s full potential is determined by how
well he adjusts to the demands and requirements of the environment.
Determinants
➢Heredity:
➢ Traits like shyness, fear, distress. Look at young children
➢ Temperament, muscle composition and reflexes, energy level,
biological rhythms
➢ Genetics account for about 50% of the personality differences, and
more than 30% of the variation in occupational and leisure interests
in twins
➢ Environment:
➢ Eg, in USA, themes of industriousness, success, competition,
independence and protestant work ethic, leads their citizens to be
ambitious and aggressive.
- Studies of thousands of twins separated at birth indicate that the hereditary
determinants for personality play a stronger role than the environment.
- Individual job satisfaction is remarkably stable over time. This indicates that
satisfaction is determined by something inherent in the person rather than by
external environmental factors.

Determinants
➢ Situation:
• Influences the effects of both heredity and environment.
• Puts constraints on behavior, eg, behavior in temple or
job interview vs that in a picnic.
So, for a manager, this provides an opportunity to create

situation that mould the personality for enabling
behavior.

Five Factor Test
• 17000 words to describe a person’s personality –

initially combined to derive 171 personality traits
• Distilled to five abstract personality dimensions –
Five core personality traits:
• It taps five basic dimensions.
• These encompass most of the significant variation in human
personality

Nomothetic: The Big Five Model; Taps into
five basic dimensions
Trait What it means
Conscien- The person is responsible, hardworking, organised, persistent and
tiousness dependable, goal-focused, thorough, methodical, disciplined,
industrious: RELIABILITY
Agreeable The person is cooperative, warm, and agreeable, trusting, helpful, good-
natured, considerate, generous, flexible, tolerant, self less: PROPENSITY TO
-ness
DEFER TO OTHERS (friendly compliance)
Neuroti- Anxious, insecure, self-conscious, depressed, temperamental,
cism hostility, self-consicousness
Emotional The person is calm, self-confident, and cool: ABILITY TO
stability WITHSTAND STRESS
Openness The person is creative, curious, cultured, imaginative,
to unconventional, aesthetically perceptive, autonomous :
experience FASCINATION WITH NOVELTY, RANGE OF INTERETS
Extraver- The person is gregarious, assertive, and sociable, talkative,
sion energetic, outgoing: COMFORT LEVEL WITH RELATIONSHIPS

Big Five Traits
• Research has shown Big Five to be a better framework.
• Helps in people-job fit :
• Strongly related to work performance across many
professions and across several performance
measures (eg, on work, training)
• Highly conscientious people develop more job knowledge, exert
greater effort, and have better performance.; strongly linked to
work performance.
• Emotional stability is related to job satisfaction; next strongly
linked to work performance.
• Extroverts tend to be happier in their jobs and have good social
skills; but impulsive. They do well in certain types of jobs.
• Open people are more creative and can be good leaders.
• Agreeable people are good in social-related jobs, eg customer-
service, conflict handling situations; but not successful in careers
as they may not negotiate well – busy pleasing others….
Personality and workplace (situational factors
and characteristics of those in setting have an
impact)
• Traits reflects an individual’s behavioural tendencies ….predicting some
workplace behaviour & outcomes
• Cluster around the broad characteristics of:
• CAlowN = “getting along”
• OEClowN = “getting ahead”
• C and lowN = best predicts individual performance in almost every job
group – energize a willingness to fulfil work obligation (C) with
established rules and to allocate resources to accomplish those tasks
(lowN)
• (Caveat= less than 10% of performance is due to personality trait of C.
Generally speaking, C=> on performance, job satisfaction, motivation)
• More specific types of employee behaviour (niche traits):
• E = sales and management jobs
• A = team based, customer relations, conflict handling situations
• O = creative and adaptable to change

MBTI: Myers-Briggs Type Indicator
• Typologies based on mental processes everyone is
capable of using:
➢ Preferences differ….
• Myers-Briggs (1940s) developed the self-reporting test to
measure their preferences….by asking questions on how
people usually feel or act in particular situation
• Taps four characteristics (preferences to each) and
classifies people into 1 of 16 possible personality types.
• These are preferences….differences are to be
understood, celebrated and appreciated (eg, to
understand work styles).

MBTI
• People change as they grow, developing skills that
broaden their abilities to engage in behaviour that may
not be “natural” or preferred in early stages of life.

The Myers-Briggs Type Indicator
Participants are classified on four axes to determine one of
Sociable,
16 possible personality types, such as ENTJ.
Interactive, Quiet, Shy, Source of
Assertive, Concentrating, energy
Outgoing, Reflective,
Extroverted Introverted Unconscious
Speaks & (E) (I) Thinks, and
Processes, look at
then thinks then speaks
Practical and big picture, Genera
Give Orderly, prefer Intuitive possibilities,
Sensing (S)
attention & routine, Details, (N) Theoretical,
collect Concrete, Abstract
information Uses Values & Emotions,
Specific Thinking
Use Reason (T) Feeling (F) Heart, Subjective,
Process & Evaluate and Logic to Circumstances, Mercy
information & handle problems, Perceiving Flexible and
Making decisions Rules, Justice Judging (J)
(P)
Spontaneous,
Want Order
Orienting & open-ended,
& Structure, Time oriented,
Engaging with exploring,
Organized, Decisive
outer world opportunity
focused 53
Prof Kajari Mukherjee/ OB&HRM
Psychometric tests
• They make decisions about people:

➢ More systematic
➢ More precise
• They predict future performance and reduce uncertainty
• They provide more accurate descriptions of people and
their behavior
• But,
➢ Tests should be seen as an additional source of information only
➢ Practice may have effect on test results

Motivation

Motivation
Motivation
• Latin term – to move
•It starts with:
•a psychological or physiological deficiency or need (motive),
that:
•Need: psychological or physiological imbalance
•Need for food - drive to reduce hunger
•Need for friend – drive for affiliation
•activates a behaviour or a drive (action-orientation)
•attention and direction (channel),
•intensity (energize), and
•persistence (sustain)
•It ends with:
•Anything that alleviates a need or reduce a drive. Restores
the balance and reduce or cut off the drive. Eating food or
obtaining friends will restore balance/reduce drive. 56
Prof Kajari Mukherjee, OB & HRM
Motivation
Motives (Needs)
• Physiological (biological, hardwired) motives
•Hunger, sleep, avoidance of pain, maternal concern
•Secondary (learned) motives
•Power, achievement, affiliation, security, status
•Extrinsic motives:
•Distributed by other people (reward, recognition,
punishment avoidance)
•Contingent based – given for a reason
•Intrinsic motives:
•Internally generated (feelings of responsibility,
achievement, accomplishment)
•Many motivators have both intrinsic and extrinsic
components

Motivation
Motivation Theories
•Content Theories:explains specific factors that motivates
people. What motivates people.
•Maslow’s hierarchy of needs theory, ERG theory,
Herzberg’s motivator & Hygiene theory, McLelland’s
need theory
•Process Theories: the behavior is outcome of series of
process which can be understood and duplicated, provided
certain constant necessary conditions are met. How
motivation happens.
•Expectancy, Equity, Reinforcement
•Contemporary Theories:
•Equity & Justice theory
•Four Drives

Growth needs that relate to individual achievement and the Motivation
development of human potential
Maslow’s Hierarchy of Needs

There is a hierarchy of five needs. As each need is substantially satisfied, the
next need becomes dominant.
Assumptions Self-Actualization (capable of

becoming; includes growth, achieving
one’s potential, and self-fulfillment) – Individuals cannot move to the
(TO TRANSFORM PERCEPTION OF
SELF INTO REALITY) next higher level until all needs
Higher Order at the current (lower) level are
Esteem (internal esteem factors such
Internal as self-respect, autonomy, and satisfied
achievement; and external esteem
factors such as status, recognition, – Must move in hierarchical order
and attention.)
Deficiency needs
that people must Social (affection, belongingness,
master before they
friendship, acceptance) Cordial Relationship
can develop healthy
Safety (physical & emotional harms) Job security
personality
Lower Order
Physiological (bodily needs)
External
Prof Kajari Mukherjee, OB & HRM Pay 59
Motivation
ERG Theory
•Three groups of core needs:
•Existence: basic material existence requirements
•Relatedness: desire to maintain interpersonal
relationship
•Growth: intrinsic desire for personal development
• Unlike Maslow, multiple needs operate as motivators
at the same time
• Frustration in attempting to satisfy a higher level
need can result in regression to a lower level
need

Motivation
McGregor’s Theory X & Theory Y

•Theory X assumptions are basically negative.
a. Employees inherently dislike work and, whenever
possible, will attempt to avoid it.
b. Since employees dislike work, they must be
coerced, controlled, or threatened with punishment.
•Theory Y assumptions are basically positive.
a. Employees can view work as being as natural as
rest or play.
b. People will exercise self-direction and self-control
if they are committed to the objectives.
•Major implication for Managers:

Participative decision making, responsible and challenging
jobs and good group relations will maximize motivation.

Motivation
How work activities and the nature of one’s job influence motivation/performance
Herzberg’s Two-Factor Theory
• Hygiene factors (relates to job context) consistently related to
job dissatisfaction:
•Extrinsic factors like supervision, pay, company policies,
working conditions, job security, relations with others
• Motivator factors (relates to job content) consistently related

to job satisfaction:
• Intrinsic factors work itself, responsibility, achievement,
promotional opportunities, personal growth, recognition.
Job is intrinsically challenging & provides opportunities for
recognition & reinforcement
• Major implication for Managers:
• Job design, job enrichment, etc are important as hygiene
factors merely bring motivational factors to theoretical
zero/floor level.

Motivation
McClelland’s Three Needs Theory

•Individuals posses several often competing needs that serve to
motivate when activated. People have varying levels of each of
the three needs (learned). Hard to measure
•Need for Achievement (nAch)
•The drive to excel, to achieve in relation to a set of
standards, to strive to succeed. Defined as behavior directed
toward competition with a standard of excellence
•Need for Power (nPow)
•The need to make others behave in a way that they would
not have behaved otherwise. Need to have a control over
one’s environment
•Need for Affiliation (nAff)
•The desire for friendly and close interpersonal relationships

Motivation
Equity Theory
•Employees compare their ratios of outcomes-to-inputs of
relevant others.
•When ratios are equal: state of equity exists – there is
no tension as the situation is considered fair
•When ratios are unequal: tension exists due to
unfairness
•Underrewarded states cause anger
•Overrewarded states cause guilt
•Tension motivates people to act to bring their situation
into equity

Motivation
Goal-Setting Theory
•Basic Premise: goals play an important part in determining
behavior
•That specific and difficult goals, with self-generated
feedback, lead to higher performance
•It improves performance in two ways:
•By amplifying the intensity and persistence of efforts
•By giving employees clearer role perceptions so that their
effort is channeled towards behavior that will improve work
performance
•Relationship between goals and performance depends on:
•Goal commitment (the more public the better!):
•Believes that he can achieve the same
•Wants to achieve the goal
•Task characteristics (simple, well-learned – not novel, independent
and not inter dependent)
•Self efficacy – belief about having the capacity to perform
•Culture bound
Motivation
Reinforcement Theory
•Similar to goal-setting theory, but focused on a behavioral
approach rather than a cognitive one.
•Behavior is environmentally caused
•Thought (internal cognitive event) is not important
•Feelings, attitudes, and expectations are ignored
•Behavior is controlled by its consequences – reinforcers
•Is not a motivational theory but a means of analysis of
behavior
•Reinforcement strongly influences behavior but is not
likely to be the sole cause

Motivation
Expectancy Theory
• The strength of a tendency to act in a certain way
depends on the strength of an expectation that the act
will be followed by a given outcome and on the
attractiveness of the outcome to the individual.
Expectancy of Instrumentality of Valuation of the

performance success in getting reward in
success reward employee’s eyes

Motivation
Justice Theory
Procedural Justice
• • Fairness of process to
make the decision
Distributive Interactional
Justice Justice
• Fairness of outcome • Being treated with
• “Get what they dignity and respect
deserve”
Related to job satisfaction,

OCB, performance, attrition. - Employee is given full explanation
Organizational - Concerns are treated with respect
Overall perception
Justice - Give employee a “voice”- allow him
of what is fair in the
- to express his concern and
workplace. perspective on the issue
Equity theory serves as the foundation to understand the perceived fairness

among various dimensions of justice.
Motivation
An interesting model: grounded to our

evolutionary heritage
• Focused on four commonly measured workplace
indicators of motivation:
•Engagement: energy, effort and initiative employees
bring to their jobs
•Satisfaction: extent to which they feel that the
company meets their expectations at work and satisfies
implicit and explicit contracts with them
•Commitment: extent to which employees engage in
corporate citizenship
•Intention to quit: best proxy to employee turnover
Studies showed that organisation’s ability to meet

these fundamental drives explains about 60% of
employees’ variance on motivational indicators.
Motivation
Four Drive Theory

• The drive to acquire: Seek, take, control, retain objects
and personal experiences
• Food, clothing, etc and social status and experiences like
travel and entertainment . Esteem needs. Enhancing one’s
self-concept through relative status and recognition.
Foundation for competition. Drive is insatiable as purpose
of human motivation is to achieve a higher position than
others, & not just fulfil physiological needs. reward
system
• The drive to bond
• Kinship, associations, attachment to closest cohorts, linked
to +ve emotions like love, caring, and –ve emotions like
loneliness, anomie (breakdown of social norms). We form
social-identities by aligning with various groups. Motivates
people to cooperate. culture 70
Motivation
Four Drive Theory

• The drive to comprehend (learn)
• Desire to make meaningful contribution, make sense of
world around us. Satisfy our curiosity, to know and
understand ourselves and the environment around us. If we
observe something that is inconcistent with or beyond our
current knowledge, we experience a tension that motivates
us to close the information gap. Growth and Self
actualisation need. job design
• The drive to defend:
• Fight or flight, protect ourselves physically and socially,
quest to create institutions that defend our relationships,
our acquisitions, our belief systems. Explains our
resistance to change
• Performance Management, Resource Allocation Process
These four drives are innate and universal, hardwired in our brains.
Independent of each other. No hierarchy. A complete set of drives.
First three are proactive – we regularly try to fulfil them. Last one is
reactive – it is triggered by threat. Thus, Any notion of fulfilling
drives
Prof Kajari is temporary
Mukherjee, OB & HRM at best. 71
Decision Making

Decision Making
Framing of a problem
• Problem
– A perceived discrepancy between the current
state of affairs and a desired state
• Perception Linkage:
– All elements of problem identification and the
decision-making process are influenced by
perception.
• Problems must be recognized.
• Data must be selected and evaluated.
• Alternatives and evaluate their strengths and
weaknesses

Decision Making
Human Beings are Quasi-Rational
• Rational: consistent, value-maximizing choices

within specified constraints
• Intuition: Gut feel (combination of past experience
and personal values, leads to unconscious
prompting)
• Combine rationality with intuition(distilled experience leads to
unconscious prompting)!
• Bounded Rationality: constructing simplified models that
extract essential features from problems without capturing all
their complexity
• Satisficing: seek solutions that are satisfactory and
sufficient

Decision Making
Decision making process

• Risk vs uncertainty:
– Probability can be assigned to alternate potential
outcomes vs inability to assign such probability
• System 1 thinking: fast, automatic, effortless, and
often, emotional (heuristics, rule of thumb)
• System 2 thinking: slow, controlled, requiring
effort, rule-governed, flexible
System 2 monitors activities of System 1; most of
the time System 1 thinking is sufficient and
practical.

Decision Making
Heuristics and Biases

• Often, people systematically deviate from the
norms of rationality
• When people have to make judgments or choices,
people typically use “rules of thumb” or “heuristics”
• Heuristics often are efficient
• But sometimes heuristics can systematically lead
you astray
• Then they are termed Biases
• Heuristics are used to reduce mental effort in
decision making, but they may lead to systematic
biases or errors in judgment.

Prospect Theory
• There is a reference point in person’s mind.

• A person evaluate “outcomes of decisions (prospects)”
in terms of gains and losses relative to the reference point.
• There is a pain when it is a loss; there is a pleasure when
it is a gain.
• Effects of loss and gain are valued differently.
• For the same amount of gains and losses, the effect of
losses is more than that of gains.
• If we perceive ourselves in the domain of gains, we will
behave in a risk-averse manner
• If we perceive ourselves in the domain of losses, we will
behave in a risk-seeking manner.

Decision Making
Prospect Theory & the Value Function

We face stronger –ve emotion
when losing something of value Value +
than +ve emotion when gaining
something of equal value. So, we
want to avoid loss at all cost. Value Function
A
Losses Gains
Reference Point
Value -

Decision Making
Loss Aversion, Status Quo Bias,

Endowment Effect
• Loss aversion: people place a higher value on the

status quo
• Endowment effect: people ascribe a higher value to
items in their possession than they would ascribe to
the same items if they were not in their possession
– Explains: A farmer forced to give up land due to regulatory
takings is likely to feel cheated even if he is compensated for it at
the fair market value. However, the same farmer may have been
unwilling to purchase the same land at the going market price,
even if he were buying it from someone else.

Decision Making
Common Biases and Errors in

Decision Making
• Overconfidence Bias
– Believing too much in our own ability to make good decisions,
especially when outside of own expertise – we are far too much
optimistic
• Anchoring Bias
– Using early, first received information as the basis for making
subsequent judgments – fixated with initial info.
– In other words, initial data or reference points have too much
influence on the final estimates or choices that we make.
• We also get anchored to irrelevant data presented….
• Confirmation Bias
– Selecting and using only facts that support our decision (to
reaffirm past choices) (we see what we want (or expect) to see)
Decision Making
More Common Decision-Making Errors

• Availability Bias
– Emphasizing information that is most readily at hand:
• Availability: Vividness and recency (ease of recall of
instances of an event) tend to make us overestimate its
likelihood.
• Randomness Error
– Creating meaning out of random events – stitch together
random events(eg, superstitions)
• Risk Aversion
– The tendency to prefer a sure gain of a moderate amount
over a riskier outcome, even if the riskier outcome might
have a higher expected payoff
• Hindsight Bias
– After an outcome is already known, believing it could have
been accurately predicted beforehand
Decision Making
Guarding Against Biases

✓ Be aware of cognitive biases (built-in heuristics)
✓ Adopt multiple perspectives
✓ Act as Devil’s Advocate: Question assumptions, check
inferences
✓ Consider the improbable or the unpopular
✓ Make incremental decisions: Collect feedback, use real
options approach
✓ Use probability and statistics
✓ Use frameworks and models: Derived from theory or
developed by experts

Decision Making
Ethics
Ethics: Ethics involves learning what is right or wrong, and then
doing the right thing
• Ethics consists of those unwritten rules we have developed for
our interactions with each other.
• Ethics consists of standards of conduct that are beyond laws
and legal rights. These guide people’s decisions and behavior.
– Eg, line cutting vs traffic rule violation
Morality – difference between good and evil

➢ Beliefs: what ‘is’ known about the world
➢ Values: what should be and what is desirable
➢ It is company’s responsibility to set clear standards and

norms of behavior and train employees in recognizing and
following them.

Decision Making
Ethical Decision-Making Criteria

Assessed
• Divine commandment
• Ethical egoism
– act in our self interest
• Ayn Rand
• Categorical Imperative;
– You cannot use others such that it gives you one-
sided benefit – everyone must operate under
same usage rules
– You not only have to be fair; you have to want to
do it for all the right reasons
• We should not discriminate in anyway

Decision Making

Assessed
➢ Utilitarianism: greatest good to greatest no of people
o Pro: Promotes efficiency and productivity
o Con: Can ignore individual rights, especially those in minority
➢ Rights: everyone has a set of rights and it is up to the government to

protect those rights
o Pro: Protects individuals from harm; preserves rights
o Con: Creates an overly legalistic work environment
➢ Justice: social contract that will operate if there were no rules at all.
Eg, equitable distribution.
o Pro: Protects the interests of weaker members
o Con: Encourages a sense of entitlement

Decision Making

Assessed
• Moral Relativists:
– Time and place ethics – weighing the competing
factors at the moment and then making a
determination to take the lesser of the evils as the
resolution

Decision Making
Principal antecedents of ethical

decision making
• Individual factors
– Actual cognitive map of the individual and his value system.
Choose the stronger ideal of yours…..
• Impact on people
– Who are the stakeholders? Who gets hurt? Choose the action
that produces greater good…..
• Organisational setting (cultural, industry setting..)
– Environment which promotes or hinders ethical action: way of
doing business, policies and procedures
• Opportunity for action
– The occasions, if at all present, when the individual can act
unethically: Choose the stronger obligation, short term vs long
term business impact…..
Source: Ferrel and Gresham, 1985

87
Decision Making
Perspective around business

ethics
• What is?
– Descriptive ethics: describing, characterizing and
studying ethics of people, culture, society
• What is your personal / organizational / cultural /
societal ethics?
• What ought to be?
– Normative ethics: supplying and justifying a
coherent ethical system of thinking and judging
Source : Otto Bremer

Interpersonal Effectiveness

Interpersonal relationships
Behavior symptomatic of inadequate interpersonal relations:
• Communication problems
• Loss of motivation:
– Tiredness
– Preoccupation with other work
• Indiscriminate opposition
• Operational problems
– Difficulty in reaching decisions
– Inefficient division of labour
• Task distortions

Transactional analysis
• Theory of personality: how people are structured
psychologically in terms of ego states (Parent-Adult-
Child) to explain how people function and express their
personality in their behavior.
– Communication as transaction between ego states
(pattern of feelings, thoughts, experience directly
related to a corresponding pattern of behavior) of two
people
– Four life positions (deep conviction about self and
others) to transact with external world
• Helps to analyse the interpersonal styles

Structure of a Personality
• Structural Personality
– A personality consists of three ego states
– Ego state : a consistent pattern of feeling and
thoughts and experience directly related to a
corresponding pattern of behavior.
– Parent, Adult and Child
– Personality ……leads to behavior…..

Adult ego state

• Adult : ……….which are adapted to current reality. Main focus
is collecting and processing information in the present. Adult
works like a computer – without any values or emotions.
• It is the part of our personality that processes data accurately,
that sees, hears, thinks and can come up with solutions to
problems based on facts and not solely on our pre-judged
thoughts or child like emotions. It responds to reality.
I will be frank with you

Parent ego state

• Parent : ……….resembling (that is, learnt or borrowed)
that of parent. Main focus is on values and norms Do as I
do/tell you
– Nurturing Parent: soft, loving, permission giving,
providing needed support, set limits in a healthy way
– Critical Parent (Controlling, Regulating):
Prescriptions – instructing in detail what needs to be
done and how, sanctions – punishing that behavior that
Parent disapproves of.

Child ego state

• Child : ……….which are relics of the individual’s own
childhood. That part of personality that is the seat of
emotions, thoughts, and feelings and all of the feeling
state ‘memories” that we have of ourselves from
childhood. They relate to emotions!
What shall I do
– Natural Child: curious, fun loving, playful,
authentic, expressive, emotional, spontaneous
feelings. That side of us that experiences world
in a direct & immediate way
• Having good contact with this ego state is essential for
intimate relationship
• This, along with Adult state, is seat of creativity.

Child ego state

– Adapted Child: the ego-state under the influence of
the parent
• Learnt to comply with the parental messages we
received growing up.
– Rebellious Child : revolting against authority
• Rebelling against the parental messages we
received growing up.

Point to note
• All ego states are important for a person.
• If any of them is weak (that is, not used much and
related function is not getting priority), we call it
“underdeveloped”. (norm: out of 50, less than 20)
• As you learnt to understand the ego state you or
someone else is using, you:
– Become adept at recognising aspects of personality/behavior.
– ……see them change right before your eyes.
– Learn to create a healthy human relationship
• How to tell what ego state you are using
» Tone of voice
» Gestures
» Specific words being used, eg “Pay attention”

Point to note
• A transaction is the act of communication or interaction
between two people. A transaction starts with a stimulus and
ends with a response to the stimulus:
– Prescriptive/admonishing (parent: rules, norms, values)
– Information (adult: thoughts and analysis)
– Feeling message (child: imagination, creativity, emotions, intuition
)
• Since each individual involved in the transaction has three ego
states, the transactions are between the various ego states.
– Interesting things happen when there is cross
connection……
• We shift from one ego state to another in transaction.

Consistent way of interacting with others = style Interpersonal Effectiveness
Life position
• We develop stroking patterns – it tends to support our
basic, existential life position, a stance in life that reflects
how we feel ourselves in relation to others.
• Based on messages received from parents and early care
givers, a young child develops a basic life position –
Existential positions – as they influence how we view our
own and others existence. This helps to understand one’s
style of working with othersHealthy life script
General transactional styles:
– I am OK, you are OK. Paranoid/Depressive position. Build a life on Angry
Competenct/Confident/Creative position – difficult to form/maintain friendship, lack
of trust. OR, cant feel good about himself in work
– I am OK, you are not OK area or relationship.
Bossing
Diffident– I am not OK, you are OK
Finds tough to see good in anyone.
Life position of despair (futility position)
Avoidant/ – I am not OK, you are not OK
Averse
Life position
• People decide their story and destiny, therefore these
decisions can be changed.
• Belief that we are each responsible for our own future,
regardless of what happened to us in the past.
– Decide which type of parent ego state you will like to have
– Which ego state you will like to use often, and which less
– Which strokes you would like to give. And, ask for
– By paying attention to different types of transaction, you can exert
some control in flow of conversation – honest, straightforward,
uncomplicated way
• TA therapy helps in changing patterns in their life that they feel
bad or are not productive – mostly script patterns based on
early decisions made during childhood.

Fundamental Interpersonal Relations
Orientation Behavior FIRO-B
• Schutz (1958): Our behavior in groups often parallels either
our own childhood’s behavior or our parent’s behavior.
• People have needs—& people need people. We express our
needs, at least in part, through our behaviors with other
people. These needs influence group behavior at two levels:
– They determine how we treat other people, and
– How we want others to treat us
• Schutz argues that groups offer members a way to satisfy
these basic needs.
• Need pattern is affected by person’s self concept, and in turn it
affects how he feel about self.
– A consciously selected level of inclusion brings about a feeling of
significance.
– A self determined level of control leads to a feeling of competence
– A willing openness with others results in a feeling of lovability
Fundamental Interpersonal Relations

Orientation Behavior FIRO-B
• FIRO-B is a psychological instrument developed to
explain:
– how interpersonal needs affect behaviour and
relationships.
– how your behaviors might be interpreted in
organizational settings.
• Interpersonal behaviors are related to the dynamic of
what we express towards others and want from others.
• It is about behavior and should not be labeled as
“personality traits”
• Interpersonal – any interaction - real (face to face, by
phone, memo) or imagined.

Three aspects of interaction between you & others
• Inclusion: Need to establish and maintain satisfactory

interactions and associations with other people. Extent of
contact and prominence that a person seeks.
Belongingness
– In or Out
– Who will you select to interact with?
– Primarily in the realm of group behavior
Descriptors: belonging, recognition, distinction,
involvement, participation

• Control: person’s behavior with respect to responsibility,

power, influence and decision making – how much he
desires to influence or direct the power of others. Power
and influence
– Top or Bottom
– Who directs the flow of interaction?
Descriptors: power, responsibility, authority, consistency,
influence

• Affection: a person’s behavior in forming close,

personal relationships with others. Love and affection,
friendship
– Close or Far
– How open is the interaction with another?
– Primarily in the realm of one to one interactions
• Descriptors: personal ties, support, consensus,
openness, sensitivity

LOW Expressed HIGH Expressed

Then: Then:
Get stuck, don’t

Inclusion People might perceive
progress, lose
you as a cold fish,
credibility
“prickly” or abrupt
Chaos reigns or your Others feel left out,

Control agenda goes by the lectured to, their
wayside ideas aren’t invited
People feel their work People are

Affection or contribution is uncomfortable, at the
unappreciated, they extreme—sexual
are a cog in the wheel harassment lawsuits106
Insights from the FIRO-B:

If you have…
HIGH Wanted LOW Wanted

Then you may perceive Then you may perceive
Lack of acknowledgement Most invitations as

Inclusion as negative, rejections as obligatory, group time as
devastating, being away as wasteful
“missing the action”
Any control as too much;
Any structuring as inadequate, plans and structures as
Control standard procedures as pressure, competitive
comforting behavior as annoying
Reassurances as superficial,
Lack of expressed concern
personal questions as
Affection as insensitive, infrequent
intrusive, emotions as
feedback frustrating
Prof Kajari Mukherjee, OB & HRM distracting/trying 107
Effectiveness through Matching

Needs: Interpersonal Compatibility
• Originator incompatibility: When people who wish to
act on needs of ICA joins a group who wish to accept
these expressions of ICA
• Incompatibility: both want to control or both don’t want to control…..
both want to originate behavior associated with Control needs
……..leading to conflict or abdication……
• Reciprocal compatibility: When A’s expressed behavior
matches what B wants, and B’s expressed behavior
matches what A wants.
• Interchange compatibility: When group members share
similar need strengths around ICA. Typically for I and A
• Incompatibility arises when one person emphasizes control needs
highly while the other person emphasizes affection needs highly
• Thus, when interpersonal problem arise, one person is likely to
define the problem as one of control, while the other person will
define it as one of closeness, warmth, affection.
Conflict Management

Conflict Defined
• A process that begins when one party perceives that
another party has taken, or will take action about
something that the first party cares about (incompatible to
one’s own interests)
– That point in an ongoing activity when an interaction
“crosses over” to become an interparty conflict
– Involves a relationship in which a sequence of
conditions and events tend toward aggressive
behavior and disorder.
• Encompasses a wide range of conflicts that people
experience in organizations:

The Conflict Process
Same Information
Perception about information
Scarcity of resources

Causes of conflict
• Personal variables:
– Personality types
– Value system
• Grudges: “Getting even” as they have lost face.
• Malevolent attributions: We believe that someone willingly is out
to harm me. I attribute malevolent motives to others. We falsely
attribute the harm we suffer to another’s negative intent, when in
reality, the cause may be externally based.
• Destructive criticism: negative feedback that is not helpful
• Distrust: You are out to get me.
• Competition over scarce resources (space, money,
people, raw material, incentive, equipment, clients): If I
succeed, I get incentive and you get nothing………
People overestimate their contribution.

Causes of conflict
– Communication:
• Semantic difficulties, misunderstandings, over communication
and “noise”
– Structure:
– Size and specialization of jobs
– Tasks assigned: Conflicts over content and goals of the work (sell
more or expand geographically). Low-to-moderate levels of this
type are FUNCTIONAL
– Process related: Conflict over how work gets done (who should
do what). Low level of this type are FUNCTIONAL
– Jurisdictional clarity/ambiguity
– Leadership styles (close or participative)
– Reward systems (win-lose)
– Dependence/interdependence of groups

Know your Interpersonal Conflict

Handling styles
Accomodating
CONCERN FOR OTHERS
Collaborative
Compromising
Avoiding Competing
CONCERN FOR OWN SELF 114

Conflict Management Techniques
➢ Conflict Resolution ➢Conflict Stimulation

Techniques Techniques
• Problem solving
• Superordinate goals • Bringing in outsiders
• Expansion of resources • Communication
• Avoidance • Restructuring the
• Smoothing organization
• Compromise • Appointing a devil’s
• Authoritative command advocate
• Altering the human variable
• Altering the structural variables
(eg, restructuring)

Thank You
Prof. Kajari Mukherjee

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ORGANISATION

One’s behavior is multi-determined and multi-

Positive reinforcement Negative reinforcement

1. Reward and Recognition schemes, 1. Discipline related,

Prof Kajari Mukherjee/ OB&HRM 3

Systematic research OB should study organizations using

Multidisciplinary OB should import knowledge from other

Contingency anchor OB theory should recognize that the

Multiple level of OB events should be understood from

Prof Kajari Mukherjee/ OB&HRM 4

Prof Kajari Mukherjee/ OB&HRM 5

Systematic • Looks at relationships

Use evidence as much as possible to inform your intuition and

Prof Kajari Mukherjee/ OB&HRM 7

Prof Kajari Mukherjee/ OB&HRM 8

• Organizational Citizenship Behavior (OCB)

Prof Kajari Mukherjee/ OB&HRM 9

• Discovered ten managerial roles – sets of behaviors in

• Separated into three groups:

Prof Kajari Mukherjee/ OB&HRM 10

Symbolic head – required

Provides motivation and

Serves as a nerve center

Transmits information Informational Roles

Prof Kajari Mukherjee/ OB&HRM 12

•Searches organisation and

Prof Kajari Mukherjee/ OB&HRM 14

Prof Kajari Mukherjee/ OB&HRM 15

Prof Kajari Mukherjee/ OB&HRM 16

• Evaluative statements or judgments concerning objects,

• Leon Festinger – No, the reverse is sometimes true!

Prof Kajari Mukherjee/ OB&HRM 18

Prof Kajari Mukherjee/ OB&HRM 19

Prof Kajari Mukherjee/ OB&HRM 20

Source: McShane & Glinow 2007: 45-46

Prof Kajari Mukherjee/ OB&HRM 22

Prof Kajari Mukherjee/ OB&HRM 23

• Accuracy of perception is influenced by:

Prof Kajari Mukherjee/ OB&HRM 24

➢Attribution – The process through which individuals

➢Correspondent Inferences - based on one evidence.

Prof Kajari Mukherjee/ OB&HRM 25

▪Causal Attribution: Asking the question “why”?

Prof Kajari Mukherjee/ OB&HRM 26

People are not equally predisposed to reach judgement

➢Self serving bias: Tendency to attribute external causes for

Prof Kajari Mukherjee/ OB&HRM 27

Prof Kajari Mukherjee/ OB&HRM 28

➢Self – fulfilling prophecy (Pygmalino/Golem effect):

Prof Kajari Mukherjee/ OB&HRM 29

Prof Kajari Mukherjee, OB & HRM 31

Cognitive biases (more…)

Prof Kajari Mukherjee, OB & HRM 32

Guarding Against Biases

✓ Adopt multiple perspectives

✓ Act as Devil’s Advocate: Question assumptions, check inferences

✓ Consider the improbable or the unpopular

✓ Make incremental decisions: Collect feedback, use real options

✓ Use probability and statistics

✓ Use frameworks and models: Derived from theory or developed by

Prof Kajari Mukherjee, OB & HRM 33

Prof Kajari Mukherjee/ OB&HRM 34

Prof Kajari Mukherjee/ OB&HRM 35