NAME –KM ARCHANA YADAV

CLASS-M.COM III SEM

ID NO -50510
TOPIC-ENTREPRENEURIAL BEHAVIOUR

TABLE OF CONTENTS
 Introduction
 Definition
 Characteristics of entrepreneurial
 Approaches of the study of entrepreneurial behavior
 Model of entrepreneurial behavior
 Role and importance of entrepreneurial

INTRODUCTION
Human behaviour in an enterprise is
generally concerned with the thoughts,
felling ,emotions and action of the people
working in it . It is rightly said that the
success of any enterprise primarily depends
upon the efficiency of entrepreneurs depends
primarily upon its human skills and how well
he understands the needs and desire of the
people working in the enterprise.
DEFINITION
“ Entrepreneurial behaviour is a subset of
entrepreneurial activities concerned with
understanding ,predicting and influencing
individual behaviour in entrepreneurial
settings”
-Callahan
CHARACTERISTICS OF ENTREPRENEURIAL
1. BEHAVIOURAL APPROACH TO
MANAGEMENT: Represents the
behavioural approach of management .it
emerged as a distinct field of study
because of the importance if human
behavior in enterprise.
2. CAUSE AND EFFECT
RELATIONSHIP:- Human behavior is
generally taken in term of cause and effect
relationship. Provides generalization that
entrepreneurs can use to anticipate the
effect of certain activities on human
behavior.
3. A BRANCH OF SOCIAL
SCIENCES:- is greatly by other social
 sciences viz.,psychology , sociology and
anthropology.
4. THREE LEVELS OF
ANALYSIS:Entrepreneurial behavior is
the study of three levels of analysis
i.e.individual behavior ,inter individual
behaviour of organistions.
5. A SCIENCE AS WELL AS AN ART:
Systematic knowledge about human
behaviour is a science and the application
of behavioural knowledge and skills is an
art.
6. A BODY OF THEORY ,RESEARCH
AND APPLICATION: - Helps in
understanding the human behaviour in
organization.
7. BENEFICIAL TO BOTH
ENTERPRISE AND INDIVIDUALS:-
Reasonable climate is created so that
employees may get much needed
satisfaction and the entrepreneur may
attain its objectives.
 8. RATIONAL THINKING:
Entrepreneurial behaviour provides a
rational thinking about people and their
behaviour. The major aim of
entrepreneurial behaviour is to explain and
predict human behaviour in enterprise.
9. HUMAN PART OF ENTERPRISE:
Focuses on people ,their desires and
needs.it is the systematic study of the
action and attitudes of people working in
enterprise.
10. CHANGE PART OF ENTERPRISE:-
need for change in human behaviour with
change in technology and other fields of
environment.
APPROACHES TO THE STUDY
1. HUMAN RESOURCES
APPROACH:-Entrepreneurs should
provide active support to workers by
threating them part and parcel of the unit.
Entrepreneurs should provide
 opportunities and encouragement to
workers to work under loose supervision.
2. CONTINGENCY APPROACH: There
is no single way to handle the human
resources under all conditions. The
behaviours or methods successful in one
situation may fail in other situation.
3. PRODUCTIVITY APPROACH:-
Means the numerical value of the ratio of
output to input ,higher the value of this
ratio, greater is the efficiency and
effectiveness of the entrepreneur.
4. SYSTEM APPROACH:- An
enterprise is a powerful system with
several subsystems which are highly and
closely interconnected. Any action taken
to solve the problem in one subsystem will
have its effect on the other subsystems
also.
MODEL OF ENTREPRENEURIAL
BEHAVIOUR:
1. AUTOCRATIC MODEL : “ The
probability that one actor, within a social
realationship ,will be in a position to carry out
his own will despite resistance.”
ESSENTIAL FEATURE OF THIS
MODEL ARE AS FOLLOWS:
 Enterprise with an autocratic
environment is authority oriented.
 Employees ‘ orientation is obedience
to the boss, they need not be respectful to
him.
 Has been successful in some situations
where the workers are actually lazy and
have a tendency to shirk work.
 Leadership in an autocratic model is
negative.
2. CUSTODIAL MODEL:- Overcomes the
shortcomings of the Autocratic model. The
insecurity of the autocratic model. The
insecurity and frustration felt by the workers
under the autocratic model sometimes led to
 aggression frustration. This will improve the
employer-employee relations.
SOME OF THE IMPORTANT FEATURES:
 Success depends upon the economic
resources because this emphasize the
economic reward & benefits.
 Employees are satisfiled & happy but
aren’t strongly motivated
 Main benefit is to bring security &
satisfaction to the employees.
 Employees depends upon unit rather
than their boss.

3. SUPPORTIVE MODEL: - Has supportive

relationships.
MAIN FEATURES:
 Depends on leadership instead of power or
money.
 Leader assumes that the workers will take
responsibility , make contribution and
improve themselves.
  Should be the duty of the entrepreneur to
support the employees ‘ job performance.
 Take care of the psychological needs of
the employees in addition to their
subsistence and security needs.
5.COLLEGIAL MODEL:-The dictionary
meaning of collegial is a body of persons
having a common purpose.
THE MAIN FEATURES OF THIS MODEL
ARE AS FOLLOWS:
 Creates a favorable climate in the unit
as the workers feel they are the partner
in the enterprise.
 Inculcates the team spirit in an unit.
 The workers have job satisfaction , job
involvement, job commitment.
5. OTHER METHODS:
 NORMATIVE MODELS: - Seek to
find out that what should be done to
produce optimum result.
  EMPIRICAL MODELS – Describe the
activities that the employees actually
perform.
 ECOLOGICAL MODELS- Deals with
the changes w/c take place in the
environment.
-understand the complexities of
enviromet.
 NON-ECOLOGICAL MODELS-
assume stabilitiy in the environment
( everything will remain the same)
 IDEOLOGICAL MODELS-
developed to deal w/ specific cases or
unique situations.
 NOMOTETHIC MODELS- deals
w/general situations. Concerned
w/theory building on the macro level
basis.
ROLE AND IMPORTANCE OF
ENTREPRENERIAL
1. UNDERSTANDING HUMAN BEHAVIOUR
: - Develop full knowledge about the
behavior of the employees.
2. PREDICTING HUMAN
BEHAVIOUR :- Predicting the future
of the employees ‘ behavior (allow
them to take preventive actions).
3. CONTROL AND DIRECT
BEHAVIOUR:-Assists entrepreneur
to direct and control the human
behavior to take preventive actions).
4. ENTREPRENEURIAL
EFEECTIVENSS :- Helps in better
use of raw mat’ l and other resources
to improve the quality of work.
5. MOTIVATION-to identity the
needs and requirement of the
employees.
6. BETTER HUMAN
EFFECTIVENESS: -maintaining
cordial human relations in the
enterprise. (To find out casuses of
industrial conflicts).