DEFINITIONS OF ORGANIZATIONAL BEHAVIOR
appointed in an organization, he/she is not hired only
According to Keith Davis, “organizational behavior is
the study and application of knowledge about how
people act within organizations. It is a human tool for
human benefit. It applies broadly to the behavior of
people in all types of organizations such as business,
government, schools, etc. it helps people, structure,
technology, and the external environment blend
together into an effective operative system”. Stephen
Robins defines organizational behavior as a “field of
study that investigates the impact that individuals,
groups, and structure have an organization to apply
such knowledge improving an organization’s
effectiveness“. There are many definitions of
organizational behavior; every definition must include
three important features, (1) organizational behavior is
the study of human behavior, (2) the study of behavior
in organizations, and (3) knowledge about human
behavior would be useful in improving an
organization’s effectiveness. Organizational behavior is
the study of what an individual thinks feels or does in
and around an organization, both individually and in
the group. It investigates people’s emotions and
behavior, behavior, and performances in a team,
systems, and structures of organizations. It helps to
explore and provide an understanding of all the factors
that are necessary to create an effective organization.
FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL
BEHAVIOR
Organizational behavior is based on a few
fundamental concepts which are relevant to the nature
of people and organizations. There are some basic
assumptions in organizational behavior such as (1)
difference between individuals; (2) a whole person; (3)
behavior or an individual is caused; (4) an individual has
dignity, (5) organizations are social systems; (6)
mutuality of interest among organizational members;
(7) holistic organizational behavior. Now let’s look at all
assumptions in detail:
• Individual differences idea comes from psychology.
Every person is different from the day of birth, every
person is unique and personal experiences make a
person more different than another other. Every
individual differs in many ways including intelligence,
physique, personality, learning capability,
communicative ability etc. Therefor,e only an
individual can take responsibility and make decisions,
whereas a group is powerless until all the individuals
within the group act accordingly.
• A whole person indicates that when an individual is
on the basis of skills, but also on likes and dislikes,
pride, and prejudices. An individual’s way of living in a
family cannot be separated from organizational life.
This is why organizations need to provide their
employees with a proper work environment where
they can work hard to progress and develop their
abilities to become better employees and also better
people in terms of growth and fulfillment.
• Caused behavior indicates that when an individual
behaves in an unmannerly fashion then there is a cause
behind it. Anything could be the reason for this cause
such as personal problems at home within the family,
or problems with coming early to the office, etc. If an
individual starts reacting in an unmannerly fashion
with other staff members then a manager should
understand that there is definitely a cause behind it.
Managers should investigate about the cause and
tackle the issue at the root level. • Human dignity
indicates that every individual needs to be treated
differently. It shows human dignity because people at
every level of the professional ladder want to be
treated with respect and dignity. Every job needs to be
done with respect and recognition this helps every
individual’s aspirations and abilities to improve. The
concept of human dignity rejects the idea of using
employees as economic tools.
• Organizations are social systems indicates that from
sociology we know that organizations are social
systems; therefore, the activities within the
organizations are governed by social and psychological
laws. Organizations have formal and informal social
systems. Social systems in an organization indicate that
the company has a dynamic changeability rather than
a static set of relations. Every part of the system is
interdependent on the other.
• Mutuality of interest indicates that both the
organization and people need each other.
Organizations are formed and maintained on the basis
of some mutuality of interest among the participants.
People require organizations to reach their goals, while
organization needs people to reach organizational
objectives. Lack of mutual interest causes
disorientation among the participants and the group.
Mutual interest provides a common goal for all the
participants, which results in the encouragement of the
people to tackle the problems of the organization
instead of raising fingers at each other.
• Holistic concept indicates that when all the above six
concepts of organizational behavior are placed
together a holistic concept arises. This concept
interprets the relationship between people and
organizations in terms of the whole person, the entire
group, the entire organization, and the whole social
system. Views of different people are taken into
account in an organization to understand the factors
that influence their behavior. Issues are analyzed in
terms of the total situation affecting them rather than
in terms of an event or problem.
There are many factors that affect an individual, a
group, and an organization. For example factors
individual factors like personality, perception, learning,
attitude, job satisfaction, and motivation. Group
factors like leadership, power and politics,
communication, and conflicts. Organization factors like
human resource policies and practices work stress,
change, and development.
What is Human Capital?
Employees are the lifeline of an organization. An
organization can’t survive if there are no employees.
The organization runs with the help of individuals who
contribute in their own way to its success and
productivity. Employees spend the maximum part of
their day in offices and strive hard to achieve the goals
and objectives of the organization. Employees ought to
be motivated from time to time so that they develop a
sense of attachment towards their organization and
also deliver their best.
Every employee in his/her tenure acquires some set of
skills through his experience, exposure, training and so
on which further increase his/her productivity
eventually benefitting the organization. Knowledge
and expertise that employees develop in due course of
time to further increase the productivity of
organizations refer to human capital. Every employee
tries his level best to sharpen his/her skills during his
stint with the organization. Human capital is defined as
the collective stock of skills, attributes, knowledge, and
expertise of employees which further plays an integral
role in increasing the productivity of the organization.
Every organization invests its money and resources to
train new employees. Employees in turn work hard,
upgrade their existing knowledge and contribute in
their own way to increase the productivity of their
organization.
The word “Human Capital” was introduced by A. W.
Lewis in “Economic Development with Unlimited
Supplies of Labour”.
Human capital plays a crucial role in increasing the
productivity and output of an organization.
Ways for Organizations to Increase Human Capital
Constant Training
It is rightly said that the success and failure of any
organization depend on its employees. Every employee
in his/her own way contributes to the development of
the organization. One of the major responsibilities of a
human resource professional is to source the right
talent for the organization. Recruit the right person for
the right role. Job mismatch leads to confusion and
eventually decreases overall productivity and output.
Orienting new employees to their jobs must not be
neglected. Mere piles of documents and employee
handbooks are not sufficient to welcome a new
employee. Boring and unrealistic employee induction
programs often leave employees in a state of dilemma.
Design a suitable induction program that not only
acquaints a new individual with the systems, and
policies of the organization but also makes him feel
comfortable within the system.
It is essential for every organization to upgrade the
skills of its employees for they to cope well with the
changing times. Employees must be trained from time
to time for them to utilize their knowledge to the fullest
when required and become an indispensable resources
for their organization.
Human resource professionals or training managers
must not design training programs just for the sake of
it. Understand how your training program would
benefit the employees.
Management can also sponsor the education of their
employees for theya to sharpen their skills and
increase human capital. Realistic training programs
increase efficiency of an employee, who further
increases the productivity of organization.
Monitoring Performance
Monitoring performance of employees also increases
human capital. Understand what your employees are
upto? Managers must take regular feedbacks from
their subordinates. Introduce the concept of online
weekly report system, where each employee would
have his/her own login ID and password.
At the end of every week, employees should be
directed to fill the online weekly report which would
automatically go to their reporting bosses for them to
evaluate their performances and write comments and
feedbacks. This way superiors can also keep a track on
their employees’ progress.
Direct Communication
Subordinates must be able to walk up to their
manager’s cabin in case of queries. The “Hitler
Approach” does not work now a days. Problems must
be discussed on an open forum for everyone to give
their suggestions, feedbacks and ideas. Do not ignore
even the minutest problem. Any problem left
unattended may lead to a serious situation later on.
Each employee should have a say in major decisions of
the company. This way employees feel attached
towards the management as well as organization. You
never know when someone might come up with a
brilliant idea.
Defined Job Responsibilities
Job responsibilities of employees must be clearly
defined to expect the best out of them. Key
responsibility areas must be designed in line with an
individual’s past work experience, educational
qualification and area of interest. KRAs ought to reflect
essential functions of one’s job.
Motivation
Employees must be motivated from time to time for
them to work harder even next time and for others to
draw inspiration from them. The talents of good
employees must be recognized either by offering them
lucrative incentives or giving them a decent salary hike.
Ways for an Individual to Boost his/her Human Capital
• Every employee should strive hard to increase his/her
value in the organization. One should contribute
his/her level best to accomplish goals and objectives of
the organization. Don’t just treat your organization as
a mere source of earning money.
• Remember there is no age limit for education. One
can constantly keep on upgrading his skills. Register
yourself for various online or distance learning courses,
something you can pursue along with your job.
Continually seeking education makes an employee
aware of the latest developments and opens his/her
mind up to new ideas. Search for new courses which
would help you contribute more towards your
organization. Don’t register yourself for any course just
for the sake of adding degrees to your resume. Some
amount of research is necessary before you get
yourself enrolled in any course. Do not forget to check
the credibility of the course or for that matter the
authenticity of the degree. Discuss with your superiors
.They will be able to guide you. Education goes a long
way in preparing you to face new challenges in
professional life. Strive hard to keep yourself abreast
with the latest technologies and progresses in industry.
• Don’t just restrict yourself to a nine to five job. There
is no point limiting yourself to predefined jobs or roles.
Try to develop new skills that will help you with your
overall performance. Be flexible and open to changes
and new leanings. Being rigid will lead you nowhere. An
employee should never bring his/her ego to work.
• Paul was a fifty years old employee working with
Organization A. He was not much familiar with internet
and computers.Drafing a business mail and
maintaining data in Excel was a big challenge for
him.Peter, on the other hand was proficient in internet
and all other functions of computer. He was
appreciated by his co workers for his contribution
towards the various processes of the organization.
Paul, being elder to Peter was reluctant to sit with him
and brush up on his skills. His ego never allowed him to
upgrade his knowledge. Paul really found difficult to
cope up with the changing times and eventually lost his
job.
• It is absolutely okay if you are not aware of
something. There is nothing to be felt ashamed of.
Discuss with your colleagues.
• Try to get involved as much as you can. A
multitalented employee always performs better in
situations of crisis than someone who just works for
himself/herself and not for organization. An employee
should always keep his eyes and ears open .Be alert and
try your level best to grab new information and
learnings.Believe me it will help you later and make you
a dependable resource. Try to work in teams.
• Information sharing also increases the efficiency of
employees and eventually human capital. Sit with your
team on an open forum and brainstorm new ideas and
concepts. Knowledge is something which can never be
stolen.
• Volunteer for various training and skill development
activities. Don’t run away from trainings. Don’t forget
your organization is investing its time and resources in
arranging training programs to benefit you. Don’t sit
with a closed mind in trainings and just for the sake of
marking your attendance. Interact with the trainer and
try to learn and discover new things.
• Don’t attend office just to earn your salary. Make it a
point to do something new every day. Work never
becomes a burden for employees who believe in
experimenting and doing new things. Read a lot. Pick
up magazines, newsletters, and journals that will help
you increase your knowledge. Don’t wait for someone
else to push you for things. Start it RIGHT NOW!
• Start your day with a smile. It will help you contribute
more towards your organization.
WHAT IS GLOBALIZATION?
Globalization refers to the spread of the flow of
financial products, goods, technology, information,
and jobs across national borders and cultures. In
economic terms, it describes an interdependence of
nations around the globe fostered through free trade.
Understanding Globalization
Corporations gain a competitive advantage on multiple
fronts through globalization. They can reduce
operating costs by manufacturing abroad, buy raw
materials more cheaply because of the reduction or
removal of tariffs, and most of all, they gain access to
millions of new consumers.
Globalization is a social, cultural, political, and legal
phenomenon.
• Socially, it leads to greater interaction among various
populations.
• Culturally, globalization represents the exchange of
ideas, values, and artistic expression among cultures.
• Globalization also represents a trend toward the
development of a single world culture.
• Politically, globalization has shifted attention to
intergovernmental organizations like the United
Nations (UN) and the World Trade Organization (WTO).
• Legally, globalization has altered how international
law is created and enforced.
On one hand, globalization has created new jobs and
economic growth through the cross-border flow of
goods, capital, and labor. On the other hand, this
growth and job creation are not distributed evenly
across industries or countries.
Specific industries in certain countries, such as textile
manufacturing in the U.S. or corn farming in Mexico,
have suffered severe disruption or outright collapse as
a result of increased international competition.
Globalization's motives are idealistic, as well as
opportunistic, but the development of a global free
market has benefited large corporations based in the
Western world. Its impact remains mixed for workers,
cultures, and small businesses around the globe, in
both developed and emerging nations.
The History of Globalization
Globalization is not a new concept. Traders traveled
vast distances in ancient times to buy commodities that
were rare and expensive for sale in their homelands.
The Industrial Revolution brought advances in
transportation and communication in the 19th century
that eased trade across borders.
The think tank, Peterson Institute for International
Economics (PIIE), states globalization stalled after
World War I, and nations' moved toward protectionism
as they launched import taxes to more closely guard
their industries in the aftermath of the conflict. This
trend continued through the Great Depression and
World War II until the U.S. took on an instrumental role
in reviving international trade.
One of the critical steps in the path to globalization
came with the North American Free Trade Agreement
(NAFTA), signed in 1993.2 One of NAFTA's many effects
was to give American auto manufacturers the incentive
to relocate a portion of their manufacturing to Mexico
where they could save on the costs of labor.
Governments worldwide have integrated a free market
economic system through fiscal policies and trade
agreements over the last 20 years. The core of most
trade agreements is the removal or reduction of tariffs.
This evolution of economic systems has increased
industrialization and financial opportunities in many
nations. Governments now focus on removing barriers
to trade and promoting international commerce.
Pros and Cons of Globalization
Pros
Proponents of globalization believe it allows
developing countries to catch up to industrialized
nations through increased manufacturing,
diversification, economic expansion, and
improvements in standards of living.
Outsourcing by companies brings jobs and technology
to developing countries, which helps them to grow
their economies. Trade initiatives increase cross-
border trading by removing supply-side and trade-
related constraints.
Globalization has advanced social justice on an
international scale as well, and advocates report that it
has focused attention on human rights worldwide that
might have otherwise been ignored on a large scale.
Cons
One clear result of globalization is that an economic
downturn in one country can create a domino effect
through its trade partners. For example, the 2008
financial crisis had a severe impact on Portugal, Ireland,
Greece, and Spain. All these countries were members
of the European Union, which had to step in to bail out
debt-laden nations, which were thereafter known by
the acronym PIIGS.
Globalization detractors argue that it has created a
concentration of wealth and power in the hands of a
small corporate elite that can gobble up smaller
competitors around the globe.
Globalization has become a polarizing issue in the U.S.
with the disappearance of entire industries to new
locations abroad. It's seen as a major factor in the
economic squeeze of the middle class.
For better or worse, globalization has also increased
homogenization. Starbucks, Nike, and Gap dominate
commercial space in many nations. The sheer size and
reach of the U.S. have made the cultural exchange
among nations largely a one-sided affair.
What Is Globalization and Why Is it Important?
In essence, globalization is about the world becoming
increasingly interconnected. Countries today are more
connected than ever before, due to factors such as air
travel, containerized sea shipping, international trade
agreements and legal treaties, and the Internet. In the
world of business, globalization is associated with
trends such as outsourcing, free trade, and
international supply chains. Globalization is important
as it increases the size of the global market, and allows
more and different goods to be produced and sold for
cheaper prices.
Globalization is also important because it is one of the
most powerful forces affecting the modern world, so
much so that it can be difficult to make sense of the
world without understanding globalization. For
example, many of the largest and most successful
corporations in the world are in effect truly
multinational organizations, with offices and supply
chains stretched right across the world. These
companies would not be able to exist if not for the
complex network of trade routes, international legal
agreements, and telecommunications infrastructure
that were made possible through globalization.
Important political developments, such as the ongoing
trade conflict between the United States and China, are
also directly related to globalization.
Is Globalization Good or Bad?
It depends. Proponents of globalization will point to
the dramatic decline in poverty that has taken place
throughout the world over the past several decades,
which many economists attribute in part to increased
trade and investment between nations. Similarly, they
will argue that globalization has allowed products and
services such as cellphones, airplanes, and information
technology to be spread far more widely throughout
the world. On the other hand, critics of globalization
will point to the negative impact it has had on specific
nations’ industries, which might face increased
competition from international firms. Globalization can
also have negative environmental impacts due to
economic development, industrialization, and
international travel.
How Does Globalization Impact Society?
Globalization has had a large impact on societies
around the world, leading to massive migrations from
rural to industrial or urban areas, leading to the rapid
growth of cities and trade hubs. While this has led to
an overall increase in incomes and a higher standard of
living in general, it has also led to problems of
urbanization including crime, domestic violence,
homelessness, and poverty. Concepts of national
identity, culture, and consumption patterns also
change as goods from around the world become
increasingly available and at low prices. The
competitiveness of global capitalism may also lead to
more individualistic ideals that contradict the cultural
orientations of certain, more collectivist societies.
Foreign Job Assignments
An international assignment is an overseas task set by
a company to an employee. Companies that engage in
international assignments are mainly multinational
corporations (MNCs). MNCs send employees from the
home country to a different country for business
operations at overseas offices or subsidiaries.[1] These
employees are called expatriates. International
assignments can fulfil a number of key organisational
functions and are viewed as development opportunity
for organisations to build a global and mature
workforce.[2] As a result of globalisation and the
saturation of domestic markets, international
assignments are a strategic tool for organisations to
compete successfully on the global stage and achieve
specific organisational objectives. These organisation
missions are a key way of developing global
perspectives. They can encourage diverse inputs into
decision and develop shared values within the
Headquarters, home country and subsidiaries.[3]
International assignments are a component of the
training and development activities of international
human resource management. Other main activities
include human resource management in the global
environment, selection, performance management,
compensation and repatriation.
REASONS FOR INTERNATIONAL ASSIGNMENTS
Employees are sent on international assignments for
various reasons, either specific to the organisation or
the employee. There are three key organisational
reasons for sending employees on international
assignments. Position filling reasons concerns the
transfer of technical and managerial knowledge.
Expatriates can be sent on international assignments to
transfer their own managerial knowledge and technical
skills to workers in the host country. These assignments
are undertaken if there is a lack of available skills in the
host country.[3] A 2016 report indicates 30% of
international assignments are for filling managerial
gaps and 24% technical.[4] Expatriates are also sent on
international assignments for management
development reasons to gain the international
experience and career growth. This form of
international assignment is increasingly known to be a
fundamental building block to leadership
competency.[2] International assignments have a
strong influence on building global and managerial
competencies and have been labelled as "the single
most influential force for the development of
managers".[5] The third reason for international
assignments is organisational development. MNCs may
send expatriates on international assignments to
exploit global market opportunities and embed a
culture of cross-border mobility.[3] Expatriates
undertaking an international assignment for
organisation development reasons may gain a broader
perspective and become familiar with more
operations.
Types of international assignments
International assignments are often determined by
the duration and vary according to the purpose and
objectives of the task.
The three broad categories of international
assignments consist of short-term, extended, and
traditional long-term assignments.
Short-term assignments are up to 6 months in
duration. The purpose of these assignments is often for
management development or problem-solving and can
include roles such as project supervision until a more
long-term arrangement can be found in the host
country. In most short-term assignments, expatriates
are unaccompanied by family and receive fewer
company benefits to support the relocation.
Extended assignments are extended short-term
assignments that last up to one year. MNCs have
traditionally sent employees on traditional long-term
assignments.
Traditional long-term assignments range from 12 –36
months and require the most rigorous expatriate
selection and training. Expatriates on traditional
assignments receive support including relocation
benefits, housing allowances, and annual home leave.
DIMENSIONS OF NATIONAL CULTURES
Psychologist Dr Geert Hofstede published his cultural
dimension’s model at the end of the 1970s, based on a
decade of research. Since then, it's become an
internationally recognized standard for understanding
cultural differences.
Hofstede studied people who worked for IBM in more
than 50 countries. Initially, he identified four
dimensions that could distinguish one culture from
another. Later, he added fifth and sixth dimensions, in
cooperation with Drs Michael H. Bond and Michael
Minkov. These are:
1. Power Distance Index (PDI)
This refers to the degree of inequality that exists – and
is accepted – between people with and without power.
A high PDI score indicates that a society accepts an
unequal, hierarchical distribution of power, and that 5. Long- Versus Short-Term Orientation
people understand "their place" in the system. A low
This dimension was originally described as "Pragmatic
PDI score means that power is shared and is widely
Versus Normative (PRA)." It refers to the time horizon
dispersed, and that society members do not accept
people in a society display. Countries with a long-term
situations where power is distributed unequally.
orientation tend to be pragmatic, modest, and more
2. Individualism Versus Collectivism (IDV) thrifty. In short-term oriented countries, people tend
to place more emphasis on principles, consistency and
This refers to the strength of the ties that people have
truth, and are typically religious and nationalistic.
to others within their community. A high IDV score
indicates weak interpersonal connection among those 6. Indulgence Versus Restraint (IVR)
who are not part of a core "family." Here, people take
Hofstede's sixth dimension, discovered and described
less responsibility for others' actions and outcomes. In
together with Michael Minkov, is also relatively new,
a collectivist society, however, people are supposed to
and is therefore accompanied by less data. Countries
be loyal to the group to which they belong, and, in
with a high IVR score allow or encourage relatively free
exchange, the group will defend their interests. The
gratification of people's own drives and emotions, such
group itself is normally larger, and people take
as enjoying life and having fun. In a society with a low
responsibility for one another's well-being.
IVR score, there is more emphasis on suppressing
3. Masculinity Versus Femininity (MAS) gratification and more regulation of people's conduct
and behavior, and there are stricter social norms.
This refers to the distribution of roles between men
and women. In masculine societies, the roles of men WHAT IS DIVERSITY?
and women overlap less, and men are expected to
Diversity is a strategic initiative followed by a firm that
behave assertively. Demonstrating your success, and
is voluntarily improving the diversity in its workforce.
being strong and fast, are seen as positive
Diversity is a widely inclusive approach that accepts
characteristics. In feminine societies, however, there is
everyone, including minorities such as women, the
a great deal of overlap between male and female roles,
differently abled, and war veterans, as well as any
and modesty is perceived as a virtue. Greater
other groups of individuals regardless of their beliefs,
importance is placed on good relationships with your
religions, perspectives, values, political views, sexual
direct supervisors, or working with people who
orientation, etc. Organizations that adopt diversity
cooperate well with one another. The gap between
initiatives do not simply look to prevent workplace
men's and women's values is largest in Japan and
discrimination but also aim to achieve a wider range of
Austria, with MAS scores of 95 and 79 respectively. In
outcomes. Those include enhancing a company’s
both countries, men score highly for exhibiting
profitability, cultivating more diverse perspectives and
"tough," masculine values and behaviors, but, in fact,
ideas, reaching new consumers and potential markets,
women also score relatively highly for having
increasing creativity and obtaining a range of diverse
masculine values, though on average lower than men.
solutions and perspectives on issues and problems.
4. Uncertainty Avoidance Index (UAI)
What is diversity in the workplace?
This dimension describes how well people can cope
Diversity in the workplace means that a company
with anxiety. In societies that score highly for
employs a wide range of diverse individuals with
Uncertainty Avoidance, people attempt to make life as
different characteristics.
predictable and controllable as possible. If they find
that they can't control their own lives, they may be By implementing that mindset, your company will
tempted to stop trying. These people may refer to become a more inclusive place for people of varying
"mañana," or put their fate "in the hands of God." gender, age, religion, race, ethnicity, cultural
People in low UAI-scoring countries are more relaxed, background, sexual orientation, languages, education,
open or inclusive. Bear in mind that avoiding abilities, etc. Consequently, creating a more accepting
uncertainty is not necessarily the same as avoiding risk. culture has a strong positive effect on individuals and
Hofstede argues that you may find people in high- connects everyone in your company.
scoring countries who are prepared to engage in risky
behavior, precisely because it reduces ambiguities, or Workplace diversity - inclusion fad or a competitive
in order to avoid failure. advantage?
Even though this topic has been sparking the interest
of many HR professionals for years now, its importance
has never been as prominent as today. Actually,
workplace diversity was one of the key workplace
trends in 2020. With the pandemic caused by Covid-19,
companies have turned to the global workforce and
started hiring more and more diverse teams while
working remotely.
WHAT ARE THE BENEFITS?
#1: Variety of different perspectives
Diversity in the workplace ensures a variety of different
perspectives. Since it means that employees will have
different characteristics and backgrounds, they are
also more likely to have a variety of different skills and
experiences. Consequently, employees in a company
with higher workplace diversity will have access to a
variety of different perspectives, which is highly
beneficial when it comes to planning and executing a
business strategy.
#2: Increased creativity
In addition to having a variety of different perspectives
from people with different backgrounds, the exposure
to a such variety leads to increased creativity. When
you put together people who see the same thing in
different ways, you are more likely to get a melting pot
of fresh, new ideas, thus improving the creativity of
your workforce.
#3: Higher innovation
Diversity in the workplace leads to higher innovation
rate. According to Josh Bersin's research, inclusive
companies are 1.7 times more likely to be innovation
leaders in their market. In a diverse workplace,
employees are exposed to multiple perspectives and
worldviews. When these various perspectives
combine, they often come together in novel ways,
opening doors to innovation.
#4: Faster problem-solving
Companies with higher workplace diversity solve
problems faster. Harvard Business Review found
diverse teams are able to solve problems faster than
cognitively similar people. Employees from diverse
backgrounds have different experiences and views,
which is why they are able to will bring diverse
solutions to the table. Thus, the best solution can be
chosen sooner, which leads to faster problem-solving.
#5: Better decision making
Workplace diversity leads to better decision making
results. A white paper from the online decision-making
platform Cloverpop has found a direct link between
workplace diversity and decision-making. Researchers
found that when diverse teams made a business
decision, they outperformed individual decision-
makers up to 87% of the time. When employees with
different backgrounds and perspectives come
together, they come up with more solutions, which
leads to more informed and improved decision-making
processes and results.
#6: Increased profits
Companies with greater workplace diversity achieve
greater profits. McKinsey & Company, a global
management consulting firm, conducted research that
included 180 companies in France, Germany, the
United Kingdom, and the United States. They found out
that companies with more diverse top teams were also
top financial performers. Companies with a diverse
workforce make better decisions faster, which gives
them a serious advantage over their competitors. As a
result, companies with diversity in the workplace
achieve better business results and reap more profit.
#7: Higher employee engagement
Workplace diversity leads to higher employee
engagement. Deloitte conducted research that
captured the views and experiences of 1,550
employees in three large Australian businesses
operating in manufacturing, retail and healthcare. This
research showed that engagement is an outcome of
diversity and inclusion. The link between workplace
diversity and employee engagement is pretty
straightforward - when employees feel included, they
are more engaged.
#8: Reduced employee turnover
Workplace diversity is beneficial for employee
retention. Companies with a diverse workforce are
generally more inclusive of different individual
characteristics and perspectives. Diversity and
inclusion in the workplace cause all employees to feel
accepted and valued. When employees feel accepted
and valued, they are also happier in their workplace
and stay longer with a company. As a result, companies
with greater diversity in the workplace have lower
turnover rates. By creating commitment to diversity
and employees create a sense of belonging to the
company and are less likely to leave.
#9: Better company reputation
Companies that are dedicated to building and
promoting diversity in the workplace are seen as good,
more human, and socially responsible organizations
which ultimately creates a better reputation for the
brand. Workplace diversity also makes your company
look more interesting. Finally, if you present a diverse
workforce, you will make it easier for many different
people to relate to your company and your brand,
opening doors to new markets, customers, and
business partners.
#10: Improved hiring results
Diversity in the workplace boosts a company’s
employer brand and presents a company as a more
desirable place to work. Workplace diversity is an
especially beneficial asset for attracting top talent from
diverse talent pools. According to a survey conducted
by Glassdoor, 67% of job seekers said a diverse
workforce is important when considering job offers.
DIVERSITY VS AFFIRMATIVE ACTION
Affirmative action and diversity are both measures
that are taken to encourage corporations to hire and
promote workers from diverse backgrounds. Both
diversity and affirmative action focus on eliminating
discrimination in hiring minorities including women,
differently abled individuals, and other groups of
minorities that suffers from disufferation in the
workplace. However, the manner in whhow is carried
out is quite distinct from one another. The following
article offers a clear overview of each and explains the
similarities and differences between affirmative action
and diversity.
What is Affirmative Action?
Affirmative action was first used by American President
John F. Kennedy when issuing an order to provide
equal employment opportunities to individuals
regardless of their color, race, creed, or nationality.
Therefore, affirmative action is a set of policies that
have powered equal opportunities legislation
mandating equal employment opportunities to all.A
court of law can orderr affirmative action on a firm that
has been accused of discrimination, thereby making it
mandated by law. Affirmative action is more limited
towards particular groups of minorities that have been
previously disadvantaged including women, the
differently abled and war veterans,. The aim of
affirmative action would be mainly to avoid legal action
against discrimination, and to boost employment in
minorities and groups disadvantaged in the workplace.
Affirmative Action vs Diversity
Diversity and affirmative action are both initiatives that
go hand in hand. However, diversity takes a step
further than affirmative action and builds on the initial
ideas and concepts of equal opportunity employment.
Without affirmative action, a firm would not be able to
recruit and promote a diverse workforce, without
which the window to diversity initiatives would not be
accessible where people are valued fortheire
differences and unique ideas, beliefs, values, etc.
There are, however, several differences between the
two.
Affirmative action is focused on improving the number
of diverse employees hired. Diversity, on the other
hand, aims at changing the organization’s culture to be
more accepting of varying views, values, and
differences. While affirmative action is mandatory,
diversity is voluntary and focuses on a wider approach
to include not only those previously disadvantage
, but also to include other groups of individuals
regardless of their beliefs, religions, perspectives,
values, political views, sexual orientation, etc.
What is the difference between Diversity and
Affirmative Action?
• Affirmative action and diversity are both measures
that are taken with the aim of encouraging
corporations to hire and promote workers from diverse
backgrounds.
• Affirmative action was first used by American
President John F. Kennedy when issuing legislation to
provide equal employment opportunities to
individuals, regardless of their color, race, creed, or
nationality.
• Diversity is a strategic initiative followed by a firm
that is voluntarily improving the diversity in its
workforce.
What Is the Role of Ethics in Organizational Behavior?
The functionality and success of an organization may
be attributed to many factors, including productivity,
business acumen, and a healthy organizational culture.
The role of ethics in organizational behavior underlies
many of the keys to success and sustainability by
creating a set of rules and guidelines that promote
safety, trust, and responsibility in the workplace. When
considering the role of ethics in organizational
behavior, it is important to consider both individual
and communal ethical issues.
Ethics are generally defined as behaving in a morally
correct fashion, although the exact definition of “moral
correctness” may vary between organizations. In
general, an organizational code of ethics exists to
promote a culture in which all actions promote the
good of the individual, the organization, and the
community serving or surrounding the organization. By
creating and enforcinga workplace culture with a
strong ethical code, an organization can reap the
benefits in several different ways.
For individuals, the role of ethics in organizational
behavior helps ensure that each person is treated fairly
and maintains personal responsibility. Ensuring that
each person earns a fair market wage based on his
effort, experience, and performance is one example of
an ethical guideline that greatly affects individuals.
Similarly, by clearly outlining personal responsibility,
such as not padding expenses or abusing sick leave,
ethical codes can help ensure that a high level of trust
exists between co-workers. In general, if an employee
feels that he is treated fairly and can trust his co-
workers and superiors, loyalty, and thus productivity
may rise.
The role of ethics in organizational behavior can also
greatly impact how the entity acts as a whole. Even if
individuals follow a strong code of ethics, if the larger
organization acts unethically, the positive effect may
be negated. For instance, even if all mid-level workers
in an office act fairly and morally toward one another,
if managers are allowed to get away with sexual
harassment or insider trading, the entire system can
become a hostile, dangerous environment that can
erode loyalty and beget more problems. One of the
keys to promoting a healthy organizational culture is
ensuring that the rules are the same throughout all
levels of the organization.
In addition to maintaining internal behavioral
standards, part of the role of ethics in organizational
behavior is to ensure that the entity is behaving
positively in the community at large. If a company
engages in behavior that damages the community, the
ramifications will often filter down into the
organization itself. One example of this might be a
significant decrease in employee loyalty after a
newspaper article discloses that the business uses
sweatshop labor to manufacture products. Assisting
the community in a positive way can help improve
employee loyalty, attract better employees, and bring
new business opportunities by maintaining an ethical
reputation.
LEARNING
Learning is a continuous and natural process to which
the human being is exposed every day of his/her life.
This concept is defined by the lasting acquisition of
knowledge, behaviors, skills, or abilities through
practice, study, or experience.
Learning is “a process that leads to change, which
occurs as a result of experience and increases the
potential for improved performance and future
learning” (Ambrose et al, 2010, p.3). The change in the
learner may happen at the level of knowledge, attitude
or behavior. As a result of learning, learners come to
see concepts, ideas, and/or the world differently.
LEARNING: MEANING, NATURE, TYPES, AND
THEORIES OF LEARNING!
Meaning and Nature:
Learning is a key process in human behavior. All living
is learning. If we compare the simple, crude ways in
which a child feels and behaves, with the complex
modes of adult behaviour, his skills, habits, thought,
sentiments and the like- we will know what difference
learning has made to the individual.
The individual is constantly interacting with and
influenced by the environment. This experience makes
him to change or modify his behaviour in order to deal
effectively with it. Therefore, learning is a change in
behaviour, influenced by previous behaviour. As stated
above the skills, knowledge, habits, attitudes, interests
and other personality characteristics are all the result
of learning.
Learning is defined as “any relatively permanent
change in behaviour that occurs as a result of practice
and experience”. This definition has three important
elements.
• Learning is a change in behaviour—better or worse.
• It is a change that takes place through practice or
experience, but changes due to growth or maturation
are not learning.
• This change in behaviour must be relatively
permanent, and it must last a fairly long time.
All learning involves activities. These activities involve
either physical or mental activities. They may be simple
mental activities or complex, involving various muscles,
bones, etc. So also the mental activities may be very
simple involving one or two activities of mind or
complex which involve higher mental activities.
TYPES OF LEARNING:
1. Motor learning:
Most of our activities in our day-to-days life refer to
motor activities. The individual has to learn them in
order to maintain his regular life, for example walking,
running, skating, driving, climbing, etc. All these
activities involve the muscular coordination.
2. Verbal learning:
This type of learning involves the language we speak,
the communication devices we use. Signs, pictures,
symbols, words, figures, sounds, etc, are the tools used
in such activities. We use words for communication.
3. Concept learning:
It is the form of learning which requires higher order
mental processes like thinking, reasoning, intelligence,
etc. we learn different concepts from childhood. For
example, when we see a dog and attach the term ‘dog’,
we learn that the word dog refers to a particular
animal. Concept learning involves two processes, viz.
abstraction and nnnnnnnnnnnnnn. This learning is very
useful in recognising, and identifying things.
4. Discrimination learning:
Learning to differentiate between stimuli and showing
an appropriate response to these stimuli is called
discrimination learning. Example, sound horns of
different vehicles like buses, car, ambulances, etc.
5. Learning of principles:
Individuals learn certain principles related to science,
mathematics, grammar, etc. in order to manage their
work effectively. These principles always show the
relationship between two or more concepts. Examples:
formulae, laws, associations, correlations, etc.
6. Problem-solving:
This is a higher order learning process. This learning
requires the use of cognitive abilities such as thinking,
reasoning, observation, imagination, generalization,
etc. This is very useful to overcome difficult problems
encountered by people.
7. Attitude learning:
Attitude is a predisposition which determines and
directs our behaviour. We develop different attitudes
from our childhood about the people, objects and
everything we know. Our behaviour may be positive or
negative depending upon our attitudes. Example:
attitudes of nurse towards her profession, patients,
etc.
LEARNING THEORY
When talking about a theory, we must do so,
considering they arise as answers to the questions
asked by researchers. So, a learning theory is defined
as a set of different concepts that observe, describe,
explain, and guide the learning process of people and
everything that relates to this process.
Having defined these concepts, we present the
learning theories with greater relevance in the
academic world.
A learning theory explains the different ways people
learn by focusing on the internal and external
influences that affect the learning process. The
learning process can be complex and because of this,
there are multiple theories to explain different
approaches to learning.
While in college, students studying to be teachers
usually learn a variety of learning theories they can
implement in the classroom. Using different theories
can give students multiple opportunities to learn class
content in ways that are relevant to them.
1. Behavioral learning theory
Behaviorism states all stimuli are followed by a
response based on the environment in which the
individual is. Learning can be explained from
observable events related to the behavior and the
context in which learning occurs. Studies concerning
behavioral theory are based on experimental
psychology. Some behaviorist theorists are Iván Pavlov,
John Watson, and B.F Skinner.
2. Cognitive theory
Cognitivism studies how the mind interprets,
processes, and hand stores information in memory. Its
foundation lies in obtaining learning from childhood,
proposing that children have an orderly structure for
information processing. In this theory, individuals are
an active entity in their learning process. The primary
authors of this theory are Jean Piaget, David Ausubel,
and Jerome Brunner.
3. Constructivist theory
Constructivism indicates learning is not obtained
passively but actively. As a consequence, knowledge is
a construction of the human being as a product of its
relationship with the environment, its own capabilities,
and previous schemes. This is one of the most used
theories today and is related to the following theorists:
Jean Piaget, David Ausubel, Jerome Bruner, and Lev
Vygotsky.
4. Meaningful learning theory
The meaningful learning theory was developed by the
American psychologist David Ausubel. This theory
proposes the human being relates the new knowledge
with those he/she already possesses. Meaningful
learning is based on obtaining quality learning and
understanding of concepts, contrary to memory or rote
learning, which is based on memorizing concepts
without the need to understand them.
5. Theory of discovery learning
The theory of learning by discovery was developed by
the American psychologist Jerome Bruner. Like
constructivist theory, discovery learning encourages
the participation of individuals in their learning
process. It considers effective learning is obtained
when students face a problem not only to solve it but
to transfer it.
6. Socio-constructivism
The Russian psychologist Lev Vygotsky is the leading
theoretician of socio-constructivism. This theory is
characterized by describing learning as a process
where social interaction is key to obtaining knowledge.
The socialization process plays a crucial role in learning
as well as connections with prior experience.
7. Information processing theory
This theory postulates individuals are information
processors. They do not necessarily have to interact
with the real environment, but their interaction is with
a subjective representation made of them. According
to this theory, learning is obtained through cognitive
processes. This theory is defended by theorists Robert
Gagné and Richard Mayer.
8. Social learning theory
The theory of social learning is represented by the
Canadian psychologist Albert Bandura. According to
this theory, learning is obtained as a consequence of
mental processes and the relationship with the
environment. Social determinants influence this
process, so modeling is essential when learning.
9. Theory of multiple intelligences
The creator of this theory is the American psychologist
Howard Gardner. Gardner proposes every human
being has eight intelligences. The development of
these will depend on the cultural and environmental
exposure the individual has. According to Gardner, not
everyone learns in the same way, and learning
becomes more effective when information is
individualized and pluralized.
Why are learning theories important?
Learning theories are important because they can
significantly improve how students learn new skills and
concepts. They affect the content found in course
curriculums, change the way some parents explain
things to their children and transform how teachers
instill knowledge in the classroom. They provide a
clearer understanding of the way people learn so that
teachers can provide more comprehensive learning
strategies adaptable for all students in the classroom.
Differentiated Learning Styles in Business
Multiple Intelligences
Professor Howard Gardner of Harvard University
proposed his theory of multiple intelligences in 1983.
According to Professor Gardner, there are eight distinct
categories of intelligence. Some people learn best
through words, others through logic and numbers,
others through pictures. Other categories of
intelligence include body intelligence, music
intelligence, social intelligence, self intelligence and
nature intelligence. Trying to design training methods
for all eight categories would be difficult and
complicated, but for business purposes the theory of
differentiated learning can be applied in a simplified
form.
Visual Learners
For business training purposes, the three learning
styles you're most likely to run into are the visual,
kinesthetic and auditory styles. Visual learners find it
easiest to learn by seeing. For instance, if you're
teaching your employees about the sales process,
visual learners will benefit most from watching a
slideshow or similar visual presentation that illustrates
the steps in closing a sale successfully. Visual learners
like charts, graphs and training videos. If you're
conducting role-playing exercises, visual learners will
benefit more from watching the exercise than
participating in it.
Kinesthetic Learners
Kinesthetic learners prefer to learn by doing. In a sales
training class, the kinesthetic learners will benefit most
from the role-playing exercises where they can
overcome objections and close the sale themselves.
They also like to take a lot of notes, as the act of note-
taking helps them fix the information in their minds. In
a job requiring any type of technical know-how,
kinesthetic learners pick up new skills most quickly
when they're allowed to practice and tinker. For
example, rather than watching a presentation about a
new type of software, a kinesthetic learner would
prefer to open it and start experimenting.
Auditory Learners
Auditory learners learn best by listening. They prefer
the traditional classroom lecture style of education. In
a sales training session, auditory learners pick up more
information from listening to the instructor explain the
sales process than from a slideshow or a role-play.
Unless you know all your employees very well, it may
not be realistic to try to design separate training
methods for each learning style. Instead, you can
incorporate visual, auditory and kinesthetic elements
into your presentation to make sure all employees will
benefit.
KNOWLEDGE MANAGEMENT
is the process of more effectively collecting, sharing,
maintaining or managing, and deploying organizational
knowledge. As a discipline, knowledge management
recognizes three basic forms of knowledge: explicit
knowledge, tacit, and implicit knowledge.
is the interdisciplinary process of creating, using,
sharing, and maintaining an organization's information
and knowledge.
In business, your understanding of what customers
want, combined with your workers' know-how, can be
regarded as your knowledge base. Using this
knowledge in the right way can help you run your
business more efficiently, decrease business risks and
exploit opportunities to the full. This is known as the
knowledge advantage.
KNOWLEDGE MANAGEMENT: TOWARDS SUCCESSFUL
ORGANIZATION
• How important is knowledge as against physical
assets for the success of our business?
• Which strategic goals do we want to support by
knowledge management?
• Which knowledge/competences do we have and
which knowledge/competences do we require in the
future to ensure long lasting competitiveness?
• How do we manage the «knowledge» resource in the
company?
• How should we organise and develop our company
so that we can cope with present and future
knowledge-based competition?
Business knowledge is an important strategic asset. It
is a sum of skills, experiences, capabilities and expert
insight, which you collectively create and rely on in
your business. As a shared resource, knowledge shapes
and affects all the activities in and around your
business.
Types of Business Knowledge
• Tacit knowledge - personal know-how or skills rooted
in experience or practice (eg aesthetic sense or
intuition). Tacit knowledge is difficult to write down,
visualize or transfer.
• Explicit knowledge - articulated knowledge recorded
in documents, memos, databases, etc. Explicit
knowledge is easy to store, distribute and
communicate.
• Embedded knowledge - skills and understanding
locked in processes, products, rules or organizational
culture (eg informal routines, codes of conduct,
organizational ethics).
Perception: Concept, Process and Distortion
Perception is another most important aspect of life of
the organization. Many problems of the organisation
and that of its members may be traced to the distortion
in perception. Perception means the ability to perceive
i.e. understanding or knowledge, mental grasp of
qualities by means of senses or awareness.
Communication is influenced by one’s perception of
individual. When we communicate with someone, the
language we used, the tone of the language and
gesture we make portray an individual’s character and
a kind of relationship he wants to develop.
We see an object but it is understood differently by
different people. It is perception. Perception is vividly
defined by experts.
Some of the definitions are given below which make
the meaning of perception clear.
• Stephen P. Robbins — “A process by which
individuals organize and interpret their sensory
impressions in order to give meaning to their
environment.”
• B. Von Haller Gilmer — “Perception is the process of
becoming aware of situations, of adding meaningful
associations to sensations.”
• Udai Prateek — “The process of receiving, selecting,
organising, interpreting, checking and reacting to
sensory stimuli or data.”
People’s behaviour is determined by their perception.
Perception consists of several processes which are
influenced by the circumstances and the perceiver
himself. In the words of H. Joseph Reitz perception
includes, “all those processes by which an individual
receives information about his environment — seeing,
hearing, feeling, tasting and smelling. The study of
these perceptional 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.”
According to the definitions cited above perception is a
function of objects or events which are perceived,
individual who is perceiving, circumstances under
which perceiving is done. Perception is based on the
activities of organs i.e. seeing, hearing, feeling, tasting
and smelling.
Perception varies from person to person and situation
to situation and time to time i.e. it is relative to person
situation and time. The individuals listening to the
same thing may perceive it differently. In the same
manner the individuals looking at the same thing may
perceive it in different ways.
The environment consists of lights, sounds, smell,
objects, social, political, cultural, technological
environments which govern the human behaviour and
stimulate him into action. On listening, seeing and
talking he makes a judgment about others. decisions.
Perceptual Illusions: the misinterpretation of a real
external, sensory experience. (MeSH) The action of
deceiving, especially by appearances. An instance of
the sense perception of an external object suggesting a
false belief as to its nature. (Oxford)
The experience of misperceiving the true
characteristics of an object or an image. (Hockenbury,
116) A perceptual experience that is not a true
representation of the physical event we are receiving
through our senses. An illusion is more than a simple
case of mistaken perception, it is an experience that
cannot be predicted by a simple recording of the
stimulus itself. (Cardwell, 126) Perceptual illusions
underscore the fact that what we see is not merely a
simple reflection of the world, but our subjective
perceptual interpretation of it. (Hockenbury, 118)
Perception bias definition
Perception bias is when our perception is skewed by
the stereotypes and assumptions we have about other
groups.
Although we may believe we’re being objective, we all
have unconscious biases that can affect decision-
making - even if we’re unaware of them ourselves.
The science behind perception bias
• Unconscious bias is natural.
• It’s simply a part of being human.
This doesn’t mean that we don’t need to do anything
about it (especially in high stakes situations like
recruitment), but it’s worth pointing out that having
implicit biases doesn’t make you a bad person, it makes
you human.
And recruitment is a prime example of this…
Perception bias in recruitment
• Our subconsciouses are full of stereotypes and
assumptions about certain groups.
• Most hirers wouldn’t like to think that their judgment
is in any way influenced by these biases…
• But the reality is - we don’t even know we’re doing it.
• Even a candidates' name alone can trigger
unconscious biases.
A candidate’s perceived race can affect their chances
of getting a callback
In the UK: Inside Out London’s study found that people
with a Muslim-sounding name are 3x more likely to be
overlooked for a job.
In the US: A 2004 study concluded that candidates with
African-American names would need an extra 8 years
of experience to get the same number of callbacks as
those with white-sounding names.
In Germany: A study found that candidates with a
Muslim-sounding name, who were pictured wearing a
headscarf, were 15% less likely to receive a callback
than their white peers.
In all of these studies, researchers only changed
candidates names. The rest of resume was exactly the
same.
Although we can’t know for sure, let’s assume that
most of the employers involved were not explicitly
bias.
If you asked them, they’d probably tell you that their
recruitment process was based purely on merit and
wasn’t biased…
But the evidence begs to differ.
Whether we choose to admit it or not, we're all open
to bias.
And the same applies to gender
Perception bias doesn’t just affect our perception of
people from different ethic backgrounds, someone’s
gender, for example, can also affect our judgement.
In the US: A study of university science faculties found
that when the name on an application was female, job
candidates were perceived as being less competent
and hireable (the rest of the application was identical).
In Australia: A study of hiring algorithm, discovered
that AI favoured male candidates.
In the UK: A UN report found that 25% of people think
men should have more right to a job than women.
Start ‘blinding’ applications
Since candidates’ names can lead to perception bias,
the first step is to anonymise applications.
But it’s not just names that can lead to bias - things like
addresses and date of birth can indicate that someone
is part of a certain group, and should therefore be
removed too.
Say goodbye to the CV
Once you’ve removed personal details from an
application, you’re left with just education and
experience.
But these can also be problematic.
So, if you’re going to remove experience and eduction
from applications, what should you replace them with?
Work samples take tasks involved in the role and ask
candidates to either perform or think through them as
if they were actually in the job.
What could be more predictive than simulating parts of
the role itself?
If someone’s eduction and experience makes them the
best candidate, then this will show in their work
samples.
By asking candidates to answer 3-5 work samples
instead of submitting a CV, you’re testing for skills
upfront, and removing perception biases around
education and experience in the processes.

Stereotypes influence how we see others Switch to structured interviews

So, we know at the screening stage, perception bias When meeting candidates face-to-face, perception
(whether we’re aware of it or not) can play a significant bias is hard to eliminate completely.
role in decision-making.
You’re still going to see candidates, hear them speak
But even when someone makes it past the initial and therefore naturally make unconscious
screening through to an interview, stereotype bias and connections.
the ideas we have about different groups could cloud
Our perception bias may lead us to favour a well-
our judgement.
spoken candidate, for instance.
Someone’s voice, perceived class or disability could
That being said, the fairest (and most predictive) way
lead us to attribute certain characteristics to them or
to interview candidates is by asking everyone the same
make assumptions about their ability.
questions in the same order.
Here’s how stereotypes can affect our perception of
This is what we call a ‘structured interview.’
various groups:
However, our de-biased interview process here at
What can we do to remove perception bias from the
Applied goes a little further than just changing
hiring process?
structure.
Here is our process for de-biasing your hiring...
Whilst your standard interview questions typically
focus on past experience, we use work sample-style
questions.
Give yourself scoring criteria
Scoring criteria is essential for a bias-free hiring
process.
Each of your work samples and interview questions
should have their own set of criteria to score
candidates against.
This doesn’t need to be extremely detailed, but some
form of objective, pre-set criteria is required.
PERSONALITY
Personality means the constitution of the mental as
well as the physical health of an individual. Personality
may be defined as the characteristic pattern of
behavior that determines an individual’s adjustment to
the environment or situation.
In modern organisations, personality attributes of a
manager are considered important, since they affect
the entire behavioural pattern of the person. In
common parlance, personality refers to the
impression, which an individual forms on others
through his personal attributes making attractive or
unattractive view.
Personality has come from a Latin word ‘Persona’
meaning to speak through (mask). As in the ancient
days masks were worn in Greece and Rome by actors,
while enacting plays. Thus, personality is used for
influencing others through external appearance.
However, personality is not the external appearance
alone.
Personality, which makes an individual to stand apart,
is the impression of characteristic attributes. It is an
aggregate of an individual’s physical, psychological and
behavioural aspects contributing to his ‘good
personality’ or no personality, according to the
presence or absence of the characteristic attributes.
Some of these, which are of significant nature, are
worth mentioning.
Personality is made up of the characteristic patterns of
thoughts, feelings and behaviour of an individual.
These attributes make a person unique. Personality
originates within the individual and remains fairly
consistent throughout life. Personality exhibits
distinctive qualities of a person, especially those
distinguishing personal characteristics that make one
socially appealing. If a person wins an election on his
own, society may say that he/she has won “more on
personality than on capability”.
Personality reveals distinctive traits of mind and
behaviour of a person. It is a pattern of collective
character which includes behavioural, mental,
temperamental, and emotional traits of a person that
makes one socially appealing. It exhibits the quality of
a person, which is visible and impresses or disturbs
others. For example, the statements such as “He has a
pleasing personality Raju is a Crude persona” reveal the
collective characters of a person which exhibits
positive or negative personality.
• “Personality is the supreme realisation of the innate
idiosyncrasy, of a living being. It is an act of courage
thing in the face of life, the absolute affirmation of all
that constitute the individual, the most successful
adaptation to the universal, conditions of existence,
coupled with the greatest possible freedom of
self determination.” — C.G. Jung
• “Personality is the relatively stable set of
psychological attributes that distinguish one “person
from another.” — Lawerence Ervin
• “Personality refers to the relatively stable pattern of
behaviours and consistent internal states that explain
a person’s behaviour tendencies.” — RT Hogan.
• “Personality is the sum total of ways in which an
individual reacts and interacts with others.” — Stephen
P. Robbins
Personality – Nature
The nature of every individual is attributed to his
personality. Generally, an individual asserts through his
behavioural characteristics. Matured persons with
their longstanding experience, take an objective
attitude towards themselves and others. They also
introspect, so as to help improve upon their nature and
behaviour.
• Self-Conscious: There is a vast difference between
human being and other species. The special feature of
his nature is ‘self-consciousness’, which makes him
aware of his surroundings and self-identity.
• Adaptability to Environment: Personality, off and on,
does make adjustments according to the changes
desired. Resistance to change, means a conflict with
tension and unpleasantness. Normally, people adapt to
the changed situations and challenges. Adaptation to
new situations often follows a modification in
behavioural pattern leading to a smooth working
condition and a conducive environment.
• Goal Oriented: Persons strive for achievement of
goal. Individuals do have the drive to achieve goals.
Wants and needs lead to motive. The desire of an
individual directs the behaviour for the fulfilment of
the same. Both the physiological and social motives
make behavioural changes.
• Integration of Personality: Personality works in
consistency by integrating various activities (of mental
and also experiences of the individual) together.
Personality differs in the form of its integration.
Persons with developed personalities are highly
integrated with values and experiences. This depends
on the standards of behaviour, which they have
acquired right from childhood.
Personality – Characteristics
If you apply for a job you’ll be asked to list your
personal qualities. Employers are assuming that your
personality is to an extent fixed and won’t change
much from one year to the next, Most of us can relate
to that idea, but where does our personality come
from? Is it in our genes or is it created more by the
circumstances of our childhood?
Of course the answer is both. There are bound to be
genes which influence our behaviour simply because
our brain and the chemicals that operate within it are
made by genes. But trying to find any one of the
hundreds of genes involved is notoriously difficult. The
genetics of behaviour is complex, because
personalities are complex. Scientists are only just
beginning to have any success in understanding how
genes influence behaviour.
• Personality is organized and constant
• Personality is psychological but is used by biological
needs and processes.
• Personality causes behaviour to happen.
• Personality is displayed through thoughts, feelings,
behaviours and many other ways.
Personality – Top 3 Determinants: Heredity,
Environment and Situation
Different theories propose different factors that
determine an individual personality. The most popular
research work done by Freud deals with the
identification of self concept. Self-concept include
things (factor) got by nature like gene, i.e., heredity and
the biological formations and by nurture, i.e., through
the social and environmental factors. The major
determinants of personality are heredity,
environment, and situation.
Determinant # 1. Heredity:
Heredity refers to those factors, which predisposes to
certain physical, mental and emotional states. It sets
the outer parameters of an individual. It also limits the
range of development of characters. The arrangement
and structure of genes that are located in the
chromosomes is passed around 20% to 50% from one
generation to another. The studies reveal that twins
though brought up in different places exhibit similar
characters.
Thus, heredity is the transmission of qualities from
ancestor to descendent through, a mechanism lying
primarily in the genes. There are very many achievers
in their own field like Sachin Tendulkar, U.R. Rao, N.R.
Narayana Murthy, Former Prime Minister P.V.
Narasimha Rao, who gave a new turn to Indian
economy and many such others, who are unique in
their own, way. These achievers’ performance is
directed by a hereditary factor to certain extent.
Determinant # 2. Environment:
Environment refers to the surroundings in which the
individuals are brought up. The environmental factors
relating to the formation of personality includes
culture, family, society upbringing and experiences.
Experiences relate to the confrontation with that of
family members, relatives, and friends and to the social
groups, which they belong. Culture helps to find the
similarity and difference in behaviour.
Family environment refers to the individual’s
upbringing, the social and economic status the family
holds and the size of the family. The society makes an
individual to play different roles thus shaping his/her
their personality. Environment tends to strengthen or
weaken hereditary traits. For example, when an
individual interacts with the environment through
speech, his speech organs guarantee that he/she is
learning to speak.
Determinant # 3. Situation:
Situation has an effect both on environment and
heredity. Situation demands certain behaviour. Various
psychologists have discovered what personality trait
matters to an individual in his or her career. Being
successful or unsuccessful depends upon how the
individuals control their behaviour in various
situations. For example, a candidate attending an
interview may exhibit limited traits. The other trait or
behavior is concealed or not exhibited.
Personality – 4 Main Stages involved in the
Personality Formation
Personality formation can mainly be divided into four
stages, as given below:
1. Primary Attachment:
It is a natural phenomenon that a child gets attached
to a person(s) taking adequate care of the child. In this
stage, the child after a few weeks starts responding
with ‘a smile’ to whom it is attached. It also requires
nourishment for proper growth. Normally, it resorts to
crying for the satisfaction of needs. During this period,
a child is relatively passive and needs the utmost care
from those around.
2. Family Role and Identification:
This stage is between 2 and 6 years, during which the
child understands the family interactions and some
social norms, etc. It acquires sufficient knowledge to
differentiate between father and mother (male and
female). This is the stage of life when a child needs
care, affection, and recognition coupled with a
response to the growth of personality.
3. Entering of Child into the Social World:
During this stage, the child starts adhering to the
social norms by actively taking part in school life. He
tries to be independent, as the major part of the day
is spent outside the home. The child imitates and
adopts the qualities of friends, teachers, and others.
4. Adolescent Stage:
The child’s personality may show much flexibility.
During this period, certain traits are set aside and the
adoption of new traits takes place. This is the time
when bodily and sexual developments do occur.
A child normally has logical thinking between 7 and 8
years of age. When he attains the age of 13, there is
every possibility of ‘Abstract thinking the process of
‘Reasoning’ is evident. From this stage, a child enters
into the ‘Adult’, the prime stage of life.
Normal development of personality occurs through
the process of identification and displacement, when
conflict appears, identification and displacement are
common phenomena. Conflicts arise mainly due to
physiological growth, frustration, and the rest from
outside. Tension is normally created by conflicts and
the individual resorts to identification and
displacement.
This process may be either partial or total. For
example, an individual may hold his father’s role in
high esteem in certain respects, however, in other
respects, he may try to identify the qualities received
from other people. Hence, the behavior of an
individual is the outcome of various identifications;
likewise, displacement also takes place in an
individual.
Personality – 8 Major Personality Attributes that
Govern Organizational Behavior
The major personality attributes that govern OB are as
follows:
Highlights of major personality attribute (SRI
LASTMIA)
The attributes in detail:
Attribute # i. Locus of Control:
It may be defined as the degree to which people
believe that they are the master of their fate. In
simple terms, it can be described as the extent to
which he believes that he knows everything.
There are two types of locus of control:
a. Internal locus of control which implies the degree
to which an individual controls himself without other’s
assistance. In this case, the individual believes that he
controls his destiny. Here the individual believes that
his behavior determines many of the events in his life.
For example – an individual with a moderately strong
internal locus of control is successful in his job career
and life. He performs his job better, copes better in
stressful situations, and is satisfied with challenging
jobs and performance-based rewards.
b. On the other hand, an External locus of control
may be defined as the degree to which an individual is
controlled by the help of other people. In this case,
the individual believes that his life is controlled by
outside forces. Here he believes that his behavior
determines chance, luck, and fate. What happens to
him is due to his luck or fate. For example – the
individual with a moderately strong external locus of
control may not be successful in his job, career, and
life.
Out of these two, the internal locus of control is
preferred more.
Attribute # ii. Self Esteem:
It signifies the degree of liking or disliking towards a
particular object. In simple terms, the extent to which
an individual likes or dislikes himself defers from
individual to individual. Some individuals may have
high self-esteem and some have low self-esteem.
The individual with high self-esteem believes in the
challenging job. But on the other hand, the individual
with /ore self-esteem depends on the receipt of
positive evaluation from others. He is less likely to
take unpopular stands.
Out of the two, the high esteemed individual is more
satisfied with his job.
Attribute # iii. Self-Monitoring:
It connotes the ability of an individual to adjust his
behavior with respect to external situation. In simple
sense it is the sensitivity of an individual to adopt to
the situational demand.
A high self-monitoring individual changes his
behaviour easily based on the situational
requirements than low self-monitoring individual. In
this case, the behaviour of the individual plays a vital
role from the organisational point of view.
Attribute # iv. Risk Taking:
It refers to the propensity to take risk. It is an integral
part of decision taking in organisation.
An individual with high risk taking makes more rapid
decision and use less information in making his choice
than the low risk taking individual.
Attribute # v. Type – A Personality and Type-B
Personality:
This indicates that the aggressive involvement in the
organisational process to achieve more and more
objectives. That means the type-A personality is based
on active participation towards the organisational
system. This type of personality is treated as positive
personality.
The behaviors of type-A personality are:
• Always moving, walking rapidly, talking and eating
rapidly.
• Impatient.
• Does two things at the same time • Cannot cope up
with leisure time.
• Measures success with quantity • Aggressive and
competitive
• Always under time pressure
• High competitiveness.
TYPE-B PERSONALITY indicates the individual who is
relaxed & incompetent. He is not serious about the
objective of organisation to a great extent. This type
of personality is rarely participating in an endless
growing series of event in a decreasing amount of
time.
The behaviour of Type-B personalities are:
• Not concerned about time • Plays for fun not to win.
• Relaxes without guilt
• Has no pressing deadlines
• Can reach higher position and promotion.
Attribute # vi. Introversion and Extroversion:
There two terms are normally associated with an
individual’s sociability and interpersonal orientation.
The INTROVERSION is defined as those type of
individuals who are shy and reserved, timid and quiet.
On the other hand, EXTROVERSION refers to those
type of individuals who are sociable, gregarious and
assertive. This dimension deals with relationships with
others.
Out of these two, extroversion individuals contribute
more to organisational success.
Attribute # vii. Machiavellianism:
This is another attribute influencing OB. It refers to
the extent to which an individual maintains emotional
distance and believes that ends can justify means. This
type of attribute is named after Niccolo Machiavellian
who found out how people gain and manipulate
power. This type of attribute is earmarked under two
i.e. High Machiavellianism and Low Machiavellianism.
The individual with High Machiavellianism
manipulates more & win more. This type of trait is
exhibited in order to flourish more outcomes.
The high outcomes are obtained when he focuses on
the following points:
a. When he interacts face to face with other indirectly.
b. To allow latitude for impoverishing when the
situation is not structured nor has a minimum rules &
regulation.
Attribute # viii. Achievement Orientation:
This is also another personality attribute which
influences OB. This is the type it individual who is
highly need to achieve and continuously strive to do
things better. This type of individual may be high
achiever or low achiever.
The high achiever individual looks for challenges
having 50-50 chance of success. To sum up, the above
attributes are essential for building up healthy
environment in the organisation provided due
attention is given.
Personality – Top 5 Variables: Personality Traits,
Attitude, Perception, Abilities and Needs
Some people are quite and passive, while others are
loud and aggressive. Certain personality types are
better adopted for certain job types. Why this is so?
To know this, we will have to understand the concept
of personality.
Goldon Allport defines the personality as “the
dynamic organization within the individu-als of those
psychological system that determine his unique
adjustments to his environment”.
Personality is a concept describing the growth and
development of a person’s whole psychological
system. For our purposes, we will consider personality
as the sum total ways in which an individual reacts
and interacts with others. This sum total behaviour of
an individual is the result of certain personal variables.
1. Personality Traits:
Psychologists have identified literally thousands of
person-ality traits and dimensions that differentiate
one person from another. But in recent years,
researchers have identified five fundamental traits
that are especially relevant to organizations.
i. Agreeableness:
Agreeableness refers to a person’s ability to get along
with others. It seems likely that highly agreeable
people are better at developing good working
relationships with co-workers, subordinates, and
higher-level managers, whereas less agreeable people
are not likely to have particularly good working
relationships.
ii. Conscientiousness:
Conscientiousness refers to the number of goals on
which a person focuses. People who focus on
relatively few goals at one time are likely to be
organized, systematic, careful, thorough, responsible,
and self-disciplined; they tend to focus on a small
number of goals at one time. Research has found that
more conscientious people tend to be higher
performers than less conscientious people in a variety
of different jobs.
iii. Negative Emotionality:
People with less negative emotionality are relatively
poised, calm, resilient, and secure; people with more
negative emotionality are more excitable, insecure.
Reactive, and subject to extreme mood swings. People
with less negative emotionality might be expected to
better handle job stress, pressure, and tension.
iv. Extroversion:
Extroversion is the quality of being comfortable with
relationships; the opposite extreme, introversion, is
characterized by more social discomfort. Extroversion
reflects a person’s comfort level with relationships.
Extroverts are sociable, talkative, assertive, and open
to establishing new relationships. Introverts are much
less sociable, talkative, and assertive, and more
reluctant to begin new relationships. Research
suggests that extroverts tend to be higher overall job
performers than introverts, and that they are more
likely to be attracted to jobs based on personal
relationships, such as sales and marketing positions.
v. Openness:
Openness is the capacity to entertain new ideas and
to change as a result of new information. People with
high levels of openness are willing to listen to new
ideas and to change their own ideas, beliefs, and
attitudes in response to new informa-tion. People
with high levels of openness may resist change. Other
Personality Traits at Work – Besides the “big five”
characteristics, several other personality traits
influence behaviour in organizations. Among the most
important are locus of control, self-efficacy,
authoritarianism, Machiavallianism, self-esteem, and
risk propensity.
vi. Locus of Control:
 Some people believe that they are masters of their
own fate. Other people believe that what happens to
them in their lives is due to luck or chance. A large
amount of research comparing these two types has
consistently shown that individuals who believe that
their lives are being controlled by outside forces, are
less satisfied with their jobs, have higher absenteeism
rates, are more alienated from the work setting, and
are less involved on their jobs than the individuals
who believe that they control their destinies.
vii. Self-Efficacy:
A person’s self-efficacy is that person’s beliefs about
his or her capabilities to perform a task. People with
high self-efficacy believe that they can perform well
on a specific task, but people with low self-efficacy
tend to doubt their ability to perform a specific task.
viii. Authoritarianism:
Authoritarianism is the belief that power and status
differences are appropriate within hierarchical social
systems such as organizations. For example- a person
who is highly authoritarian may accept directives or
orders from someone with more authority purely
because the other person is “the boss.” On the other
hand, a person who is not highly authoritarian,
although he may still carry out reasonable directives
from the boss, is more likely to question things,
express disagreement with the boss, and even refuse
to carry out orders if they are for some reason
objectionable. A highly authoritarian manager may be
relatively autocratic and demanding, and highly
authoritarian subordinates are more likely to accept
this behaviour from their leader. On the other hand, a
less authoritarian manager may allow subordinates a
bigger role in making decisions, and less authoritarian
subordinates respond positively to this behaviour.
ix. Machiavellianism:
People who possess the personality trait of
machiavellianism behave to gain power and control
the behaviour of others. Research suggests that
degree of Machiavellianism varies from person to
person. More Machiavellian individuals tend to be
rational and nonemotional, may be willing to lie to
attain their personal goals, put little emphasis on
loyalty and friendship, and enjoy manipulating others’
behaviour. Less Machiavellian individuals are more
emo-tional, less willing to lie to succeed, value loyalty
and friendship highly, and get little personal pleasure
from manipulating others. In jobs that require
bargaining skills (such as labour negotiation) or where
there are substantial rewards for winning (as in
commissioned sales), high Machs will be productive.
x. Self-Esteem:
A person’s self-esteem is the extent to which that
person believes he or she is a worthwhile and
deserving individual. A person with high self-esteem is
more likely to seek higher-status jobs, be more
confident in his ability to achieve higher levels of
performance, and derive greater intrinsic satisfaction
from her accomplishments. In contrast, a person with
less self-esteem may be more content to remain in a
lower-level job, be less confident of his ability, and
focus more on extrinsic rewards.
xi. Risk Propensity:
A person’s risk propensity is the degree to which he
or she is willing to take chances and make risky
decisions. For example- a manager with a high risk
propensity, might experiment with new ideas and
gamble on new products. He might also lead the
organization in new and different directions. This
manager might be a catalyst for innovation, or on the
other hand, might jeopardize the continued well-
being of the organization if the risky decisions prove
to be bad ones.
2. Attitude:
People’s attitudes also affect their behaviour in
organizations. Attitudes are a person’s beliefs and
feelings about specific ideas, situations, or other
people. When I say “I like my job,” I am expressing my
attitude about work.
In organizations, attitudes are important because they
affect job behaviour. If workers believe, For example-
that supervisors, auditors, bosses, and time and
motion engineers are all in conspiracy to make the
employee work harder for the same or less money,
then it makes sense to try to understand how these
attitudes were formed, their relationship to actual job
behaviour, and how they can be made more
favourable.
Attitudes are formed by a variety of forces, including
our personal values, our experi-ences, and our
personalities. For example- if we value honesty and
integrity, we may form especially favourable attitudes
toward a manager who we believe to be very honest
and moral.
Similarly, if we have had negative and unpleasant
experiences with a particular coworker, we may form
an unfavourable attitude toward him. Any of the “big
five” or individual personality traits may also influence
our attitudes. Understanding the basic structure of an
attitude helps us see how attitudes are formed and
can be changed.
Typically, there are three primary attitudes that are of
concern to us; job satisfaction, job involvement, and
organizational commitment.
might find him friendly and approachable, whereas
your classmate might think he’s unprofes-sional.
How can this happen? After all, the instructor is the
same person. The answer rests on the fact that our
perceptions of other people depend in great part not
only on them, but on what we bring to the situation
ourselves-our own biases and past experiences.

Job satisfaction refers to an individual’s general 4. Abilities:

attitude towards his or her job. A person with a high
Ability of a person is his competence to perform a
level of job satisfaction holds positive attitudes
particular job. This includes general ability and
toward the job, while a person who is dissatisfied with
technical ability both. It may be capacity of reasoning,
his or her job holds negative attitudes about the job.
analytical skills, communication skills, and so on.
Job involvement measures the degree to which a Ability of a person has a direct correlation with his job
person identifies with his or her job, actively behaviour. The best part is that ability can be
participates in it, and considers his or her developed by education, training and experience.
performance important to his or her self-worth.
5. Needs:
The third job attitude we shall discuss is
Need is not an independent variable. It depends on
organizational commitment. This attitude expresses
the individual’s basic personality plus his
an individual’s orientation towards the organization
environment, like his education, financial position,
by tapping his or her loyalty to, identification with,
family status, position of his relatives and peer group,
and involvement in the organization. Individuals who
his ambitions, perceptions, etc. For instance, a person
are highly committed to the organization are likely to
with a poor financial background would prioritize
stay with their jobs and feel psychologically attached
money before any other need.
to them, regardless of whether they are satisfying or
not. Again, same person’s needs keep changing over the
period of time depending upon how he is positioned
Attitudes are not as stable as personality attributes.
in the life. This can be better understood by studying
For example- new information may change attitudes.
Maslow’s need hierarchy model.
A manager may have a negative attitude about a new
colleague because of his lack of job-related
experience. After working with the new person for a
while, however, the manager may come to realize
that he is actually very talented and subsequently
develop a more positive attitude.

3. Perception:

It is another important element of workplace

behaviour. People behave on the basis of what is
perceived rather than what actually is. Each person
has a point of view based on individualistic
perceptions of the real world. This way, everybody
having his distinct set of thought process perceives
differently. If everyone perceived everything the same
way, things would be a lot simpler (and a lot less
exciting!).

As an illustration, think about how two people

exposed to a person at the same time may form very
different impressions. Hearing your new instructor tell
lots of funny stories in class, For example- you and a
classmate might reach opposite conclusions. You