Organisational Behaviour- Unit-1& 2 Notes- MBA-1

Definition of Organizational Behavior (OB) by Fred Luthans

Fred Luthans defines Organizational Behavior (OB) as "directly concerned with the
understanding, prediction, and control of human behavior in organizations
According to Luthans, behavior refers to anything that humans do in an organization, how
they perform, and what their actions mean.

Concept of Organizational Behavior (OB)

OB is the study and application of knowledge about predicting, understanding, and
controlling behavior in the organizational setting. It is a process for looking at events, a
way of life, and has empirical facts, interesting interpretations, and powerful paradigms2.
OB can be studied at various levels within an organization, and each level has a unique
set of roles, responsibilities, and goals.

Scope of Organizational Behavior (OB)

The scope of OB is vast and includes predicting, understanding, and controlling behavior
in the organizational setting. It is of great importance for any organization in today's
scenario, given the vast changes in the organizational set up and the world economy, as
well as the growing concern about stakeholders.
Challenges and Opportunities of Organizational Behavior (OB)

The challenges of OB include dealing with diverse workforces, managing change, and
dealing with ethical issues1. The opportunities of OB include improving employee
productivity, increasing job satisfaction, and enhancing organizational effectiveness

Fred Luthans has identified five models of Organizational Behavior (OB) that are used to
understand, predict, and control human behavior in organizations. These models are:

1. Autocratic Model: This model is based on the assumption that employees are lazy,
need constant supervision, and are motivated only by rewards and punishments.
The manager has complete control over the employees and makes all the
decisions.
2. Custodial Model: This model assumes that employees are economic resources
and need to be taken care of by the organization. The focus is on providing
economic security, benefits, and working conditions to employees to ensure their
loyalty and motivation.
 3. Supportive Model: This model assumes that employees are social beings who
need to be treated with respect and dignity. The focus is on creating a supportive
work environment that encourages employee participation, involvement, and
empowerment.
4. Collegial Model: This model assumes that employees are professionals who are
committed to their work and the organization. The focus is on creating a
collaborative work environment where employees work together as a team to
achieve common goals.
5. System Model: This model assumes that the organization is a complex system of
interrelated parts that work together to achieve common goals. The focus is on
understanding the interdependence of different parts of the organization and how
they affect each other.

These models provide a framework for understanding the different approaches to

managing employees and the assumptions that underlie them. Each model has its
strengths and weaknesses, and the choice of model depends on the organization's goals,
culture, and environment.

Dependent and Independent Variables in Organizational Behavior

In Organizational Behavior (OB), dependent and independent variables are used to
understand the relationship between different factors and their impact on organizational
outcomes.
Independent Variables
Independent variables are the factors that are presumed to cause a change in the
dependent variable. Some examples of independent variables in OB include:

• Interpersonal communication
• Workplace conflict
• Work stress
• Leader's behavior
• Productivity
• Absenteeism

Dependent Variables
Dependent variables are the outcomes or responses to the independent variables. Some
examples of dependent variables in OB include:

• Job satisfaction
• Employee turnover
• Organizational commitment
 • Employee motivation
• Organizational performance

Understanding the relationship between independent and dependent variables is essential

in OB research as it helps to identify the factors that contribute to organizational success
or failure. By manipulating independent variables, researchers can determine their impact
on dependent variables and develop strategies to improve organizational outcomes.

Individual Behaviour
Individual behaviour refers to the actions, responses, and reactions of an individual in a
particular position or role within an organization. It is influenced by various factors such as
personal traits, attitudes, perception, personality, stress, beliefs, and norms.
Understanding individual behaviour is crucial for managers as it helps in creating a positive
work environment, improving employee motivation, and enhancing organizational
performance.

Personality
(i) Concept and Nature of Personality: Personality refers to a set of psychological traits
and mechanisms within an individual that influence their behavior and thoughts. It is the
unique combination of characteristics, patterns of thinking, feeling, and behaving that
distinguishes one individual from another. Personality is relatively stable over time and
across different situations.
(ii) Determinants of Personality: Personality is influenced by various factors, including
genetics, environment, culture, and life experiences. Some of the major determinants of
personality include attitudes, perception, self-esteem, self-efficacy, and core self-
evaluation.
(iii) Sigmund Freud: Iceberg & Psychoanalytic Theory of Personality: Sigmund Freud
proposed the psychoanalytic theory of personality, which suggests that personality is
largely rooted in the unconscious mind. Freud used the metaphor of an iceberg to explain
the structure of the mind, with the conscious mind being the tip of the iceberg and the
unconscious mind being the larger, hidden part.
(iv) Big Five Model and MBTI: The Big Five model is a widely accepted framework that
identifies five major dimensions of personality: openness, conscientiousness, extraversion,
agreeableness, and neuroticism. The Myers-Briggs Type Indicator (MBTI) is a popular
personality assessment tool that categorizes individuals into one of 16 personality types
based on four dichotomies.
(v) The Dark Triad: The Dark Triad refers to three negative personality traits: narcissism,
Machiavellianism, and psychopathy. These traits are associated with behaviors such as
manipulation, deceitfulness, and lack of empathy.
Understanding and managing personality is important in organizational behavior as it helps
in predicting and explaining individual behavior, improving team dynamics, and making
effective personnel decisions

Learning
Concept and Process of Learning

Learning is a process of acquiring new knowledge, skills, or behaviors through experience,

study, or instruction. It involves a change in behavior or potential behavior that occurs as a
result of experience. The process of learning includes attention, retention, reproduction,
and motivation.

Theories of Learning: Conditioning, Classical and Operant Conditioning

There are various theories of learning, including:

(i) Classical Conditioning: Classical conditioning is a type of learning that links a neutral
stimulus with a response. It involves pairing a neutral stimulus with an unconditioned
stimulus to create a conditioned response. For example, Pavlov's dogs learned to
associate the sound of a bell with food, causing them to salivate at the sound of the bell
alone.
(ii) Operant Conditioning: Operant conditioning is a type of learning that links a behavior
with a consequence. It involves reinforcing or punishing a behavior to increase or
decrease its frequency. For example, a student who receives praise for good grades is
more likely to continue to perform well in school.

Shaping Behaviour: Types & Schedules of Reinforcement

Shaping is a type of reinforcement used to create a new behavior by guiding the subject
towards a desired behavior. It involves reinforcing successive approximations of the
desired behavior until the final behavior is achieved. There are two types of reinforcement:
positive reinforcement and negative reinforcement. Positive reinforcement involves
adding a desirable stimulus to increase the frequency of a behavior, while negative
reinforcement involves removing an aversive stimulus to increase the frequency of a
behavior.
Schedules of reinforcement refer to the timing and frequency of reinforcement. There are
four types of schedules of reinforcement: fixed ratio, variable ratio, fixed interval, and
variable interval. Each schedule has a different effect on the frequency and duration of the
behavior.
Understanding the different theories of learning and types of reinforcement is important for
managers to create a positive work environment, improve employee motivation, and
enhance organizational performance

Attitudes
Definition & Components of Attitude and Job Satisfaction/Employee Engagement

Attitude refers to an individual's overall evaluation of an object, person, or situation. It is

composed of three components: affective, behavioral, and cognitive. The affective
component refers to the emotional reaction to the object, the behavioral component refers
to the actions taken towards the object, and the cognitive component refers to the beliefs
and thoughts about the object.
Job satisfaction is an attitude that reflects an individual's overall evaluation of their job.
Employee engagement is a positive attitude towards work that involves passion,
commitment, and participation. Both job satisfaction and employee engagement are
important for organizational performance and productivity.

Attitude-Behavior Relationship

The attitude-behavior relationship refers to the degree to which attitudes predict behavior.
While attitudes are generally good predictors of behavior, the relationship between
attitudes and behavior is complex and influenced by various factors such as situational
constraints, social norms, and personality traits.

Types of Attitudes

There are various types of attitudes, including:

• Job Satisfaction: Job satisfaction is an attitude that reflects an individual's overall

evaluation of their job. It is influenced by various factors such as pay, work
environment, and job security.
• Organizational Commitment: Organizational commitment is an attitude that
reflects an individual's emotional attachment to the organization and their
willingness to work towards its goals.
 • Organizational Citizenship Behaviors: Organizational citizenship behaviors
(OCBs) are voluntary behaviors that are not part of an employee's formal job
description but contribute to the effective functioning of the organization.

Effects of Employee Attitude

Employee attitude has a significant impact on organizational performance and productivity.

Positive attitudes such as job satisfaction and employee engagement are associated with
higher levels of job performance, organizational commitment, and OCBs. Negative
attitudes such as job dissatisfaction and low organizational commitment are associated
with absenteeism, turnover, and counterproductive work behaviors.

Changing Employee Attitude and Psychological Contract

Changing employee attitude can be challenging, but it is possible through various

interventions such as training, coaching, and feedback. The psychological contract, which
refers to the unwritten expectations and obligations between employees and employers,
can also influence employee attitude and behavior.

Attitude-Behavior Relationship

The attitude-behavior relationship refers to the degree to which attitudes predict behavior.
While attitudes are generally good predictors of behavior, the relationship between
attitudes and behavior is complex and influenced by various factors such as situational
constraints, social norms, and personality traits

Perception, Attribution, and Emotional Intelligence

Definition and Perceptual Process and Perception Selectivity

Perception is the process by which individuals screen, select, organize, and interpret
stimuli to give them meaning. It involves a complex process of selecting, organizing, and
interpreting sensory information to create a meaningful experience. Perception selectivity
refers to the process by which individuals select objects in the environment for attention.

Fundamentals of Attribution and Theory of Attribution and Errors of Attribution

Attribution is the process by which individuals explain the causes of behavior and events3.
The theory of attribution suggests that individuals make attributions based on two types of
information: dispositional information (internal factors such as personality traits) and
situational information (external factors such as environmental factors).
There are several errors of attribution, including:

• Fundamental Attribution Error: The fundamental attribution error refers to the

tendency to overemphasize dispositional explanations for behavior and
underestimate situational explanations.
• Self-Serving Bias: The self-serving bias refers to the tendency to attribute success
to dispositional factors and failure to situational factors.
• Halo Effect: The halo effect refers to the tendency to generalize positive or
negative impressions of an individual based on a single trait or characteristic.
• Stereotyping: Stereotyping refers to the tendency to attribute characteristics to
individuals based on their membership in a particular group.

Emotional Intelligence

Emotional intelligence refers to the ability to perceive, understand, and manage emotions
in oneself and others. It involves the ability to recognize and regulate one's own emotions,
as well as the emotions of others. Emotional intelligence is important for effective
communication, leadership, and interpersonal relationships in the workplace.
Understanding perception, attribution, and emotional intelligence is important for managers
to create a positive work environment, improve employee motivation, and enhance
organizational performance.

Motivation
Definition and Classification of Motives

• Motivation is the desire or drive that energizes and directs behavior towards a goal.
• Motives are the underlying reasons or needs that prompt individuals to act in a
certain way.
• Motives can be classified into various categories, including physiological motives
(e.g., hunger, thirst), safety motives (e.g., security, stability), social motives (e.g.,
affiliation, belongingness), esteem motives (e.g., recognition, achievement), and
self-actualization motives (e.g., personal growth, fulfillment).
Early Theories of Motivation

(i) Hierarchy of Needs Theory: Maslow's hierarchy of needs theory suggests that
individuals have a hierarchy of needs, ranging from physiological needs at the base to self-
actualization needs at the top. Individuals are motivated to fulfil lower-level needs before
moving on to higher-level needs.

(ii) Theory X and Theory Y: Theory X and Theory Y, proposed by Douglas McGregor,
describe two contrasting assumptions about human nature and motivation in the
workplace. Theory X assumes that employees are inherently lazy and need to be
controlled and coerced, while Theory Y assumes that employees are self-motivated and
can be empowered.

(iii) Two-Factor Theory: Herzberg's two-factor theory suggests that job satisfaction and
dissatisfaction are influenced by two sets of factors: hygiene factors (e.g., salary, working
conditions) and motivators (e.g., recognition, achievement). Hygiene factors prevent
dissatisfaction, while motivators lead to satisfaction and motivation.

(iv) McClelland's Theory of Needs: McClelland's theory of needs proposes that

individuals have three primary needs: achievement, affiliation, and power. The extent to
which these needs are present in an individual influences their motivation and behavior.

Contemporary Theories of Motivation

(i) Self-Determination Theory: Self-determination theory focuses on intrinsic motivation

and the satisfaction of basic psychological needs, including autonomy, competence, and
relatedness. It suggests that individuals are motivated when they have a sense of control,
feel competent, and have positive social interactions.
(ii) Goal Setting Theory: Goal setting theory emphasizes the importance of setting
specific, challenging goals to enhance motivation and performance. It suggests that clear
goals, feedback, and commitment lead to higher levels of motivation and task
performance.
(iii) Self-Efficacy Theory: Self-efficacy theory proposes that individuals' beliefs about their
own capabilities influence their motivation and behavior. When individuals have high self-
efficacy, they are more likely to be motivated, set challenging goals, and persist in the face
of obstacles.
(iv) Expectancy Theory: Expectancy theory suggests that individuals are motivated when
they believe that their efforts will lead to performance, performance will lead to rewards,
and rewards are valuable. It emphasizes the importance of expectancy, instrumentality,
and valence in motivating behavior.
Understanding different theories of motivation is important for managers to create a
motivating work environment, enhance employee engagement, and improve organizational
performance