Content

1. Ob? 1
it’s nature 5
,scope 1
,concept 3
and importance 6
2. Factors influencing Individual Behaviour 7
3. Models of Organizational Behaviour 9
4. Limitations of organisational behaviour 13
5. Why ob is a contributory field 13
6. 14 Management Principles by Henri Fayol:17
7. How are attitudes formed? 22
8. MODEL OF MAN 23
9. Personality definition, determinants 24, Traits 26, theories 31
10. Sensation vs perception 35
11. Process of perception 36
12. Motivation definition, process 38
13. Theories of motivation 39
14. Similarities between Maslow's Hierarchy of Need Theory and Herzberg's Two
Factor Theory 53
15. Motivation cycle 53
16. Leader definition 55 characteristics 55
17. Leadership style 56
18. Leader vs manager57
19. Conflict definition 57 it’s types
20. Stages of Group Formation 62
21. Group dynamics stress, learning 63
22. Managerial grid 64

1.What is Ob? Discuss scope and concept, nature , impt of ob

Ans. “Organisational behaviour iscan be defined as the study and
application of knowledge about how people act within an
organisation. It is a human tool for human benefit. It applies broadly
to the behaviour related to other elements of people in all types ofan
organisation.”
such as structure, technology and social systems.”
Scope of Organisational Behaviour:

The Scope of the organisational behaviour can be explained with the help of
following points:
  Individual Behaviour
 Interpersonal Behaviour
 Organisational Behaviour

Enhanced Individual Behaviour

Appropriate skills are required to survive and succeed in the modern workplace. An
employee needs skills related to his or her discipline as well as generic skills.

A person can learn organisational behaviour to gain knowledge to improve

interpersonal skills, conflict resolution, interpersonal communication, teamwork etc.
These improved skills can enhance individual effectiveness.

Generic skills include:

 Problem Solving Skills

 Skills to deal with People
A person also need to develop various soft skills such as:

 Communication Skill
 Leadership Skill
 Project Management Skill
 Business Insight Skill
 Analytical and decision-making skill
 And Many More
Personal Growth

Study of organisational behaviour also helps for personal growth through insights
into human behaviour. A person studying organisational behaviour can get the
personal fulfillment by understanding others.

Impact Of Personality On Performance

It’s also essential to understand the impact of personality of an employee or other

members of the team on performance.

Individual Behaviour
Understanding of Behaviour of Individual person by understanding his/her
personality, attitude, and interests.

 Motivation
 Learning
 Perception
 Personality
 Values
 Attitudes
Enhanced Interpersonal & Group Behaviour

Inter-individual behaviour includes the study of interactions and behaviour of an

employee with other employee, subordinates and senior management. Group
behaviour refers to behaviour in the group. For example, social group, Rally or strike
or cumulative efforts towards goal or objectives of the organization.

 Work Groups and Work Dynamics

 Leadership
 Communications
Enhanced Organisational Behaviour & Effectiveness

Understanding organisational behaviour also improves organisational effectiveness.

Employee motivation, communication and personality improvements contribute to
this effectiveness.

 Job design
 Leadership
 Management of change, conflict and stress
 The motivation of employees of the organization
 Organization Design
 Organizational development
 Organizational structures: Their Study and Development
 Structure of teams and groups
The Motivation of Employees of Organization

The study of Organizational behaviour helps to understand employee behaviour.

This helps to understand what kind of Monetary & Non-Monetary benefits will help to
motivate employees and to create a positive attitude. This is another important scope
of OB.
Organisational Structure

It includes the study of organisational structure.

 Objectives of the organization & direction

 Organizational culture
 Organisational Development
 Organisational Change
 Organisational Effectiveness

Concepts of Organizational Behaviour:

Organizational behaviour is based on a few fundamental concepts which are

relevant to the nature of people and organisations. There are some basic
assumptions in organizational behaviour such as,

1. 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 the other. Every individual differs in many ways
like intelligence, physique, personality, learning capability, communicative
ability etc. Therefore, only an individual can take responsibility and make
decisions, whereas a group is powerless until all the individuals within the
group act accordingly.
2. A whole person indicates that when an individual is appointed in an
organisation, he/she is not hired only 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 organisational life. This is why the organisations
need to provide their employees with a proper work environment where they
can work hard to progress and develop their abilities to become a better
employee and also a better person in terms of growth and fulfilment.
3. Caused behaviour indicates that when an individual behaves in an
unmannerly fashion then there is a cause behind it. Anything could be the
reason of 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.
4. Human dignity indicates that every individual needs to be treated differently.
It shows human dignity because people at every level of professional ladder
want to be treated with respect and dignity. Every job needs to be done with
respect and recognition this helps all individual aspirations and abilities to
improve. The concept of human dignity rejects the idea of using employees as
economic tools.
5. Organisations are social systems indicates that from sociology we know
that organisations are social systems; therefore, the activities within the
organisations are governed by social and psychological laws. Organisations
 have formal and informal social systems. Social systems in an organisation
indicate that the company has dynamic change ability rather than static set of
relations. Every part in the system is interdependent on each other.
6. Mutuality of interest indicates that both the organisation and people need
each other. Organisations are formed and maintained on the basis of some
mutuality of interest among the participants. People require organisations to
reach their goals, while organisation needs people to reach organisational
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 encouragement of the people to tackle problems
of the organisation instead of raising fingers at each other.
7. Holistic concept indicates that when all the above six concepts of
organisational behaviour are placed together a holistic concept arises. This
concept interprets the relationship between people and organisation in terms
of the whole person, entire group, entire organisation and the whole social
system. Views of different people are taken into account in an organisation to
understand the factors that influence their behaviour. Issues are analysed in
terms of the total situation affecting them rather than in terms of an event or
problem.

NATURE OF OB:

1. A Separate Field of Study and Not a Discipline Only:

By definition, a discipline is an accepted science that is based on a theoretical
foundation. But, O.B. has a multi- interdisciplinary orientation and is, thus, not based
on a specific theoretical background. Therefore, it is better reasonable to call O.B. a
separate field of study rather than a discipline only.
2. An Interdisciplinary Approach:
Organizational behaviour is essentially an interdisciplinary approach to study human
behaviour at work. It tries to integrate the relevant knowledge drawn from related
disciplines like psychology, sociology and anthropology to make them applicable for
studying and analysing organizational behaviour.
3. An Applied Science:
The very nature of O.B. is applied. What O.B. basically does is the application of
various researches to solve the organizational problems related to human behaviour.
The basic line of difference between pure science and O.B. is that while the former
concentrates of fundamental researches, the latter concentrates on applied
researches. O.B. involves both applied research and its application in organizational
analysis. Hence, O.B. can be called both science as well as art.
4. A Normative Science:
Organizational Behaviour is a normative science also. While the positive science
discusses only cause effect relationship, O.B. prescribes how the findings of applied
researches can be applied to socially accepted organizational goals. Thus, O.B.
deals with what is accepted by individuals and society engaged in an organization.
Yes, it is not that O.B. is not normative at all. In fact, O.B. is normative as well that is
well underscored by the proliferation of management theories.
5. A Humanistic and Optimistic Approach:
Organizational Behaviour applies humanistic approach towards people working in
the organization. It, deals with the thinking and feeling of human beings. O.B. is
based on the belief that people have an innate desire to be independent, creative
and productive. It also realizes that people working in the organization can and will
actualise these potentials if they are given proper conditions and environment.
Environment affects performance or workers working in an organization.
6 A Total System Approach:
The system approach is one that integrates all the variables, affecting organizational
functioning. The systems approach has been developed by the behavioural
scientists to analyse human behaviour in view of his/her socio-psychological
framework. Man’s socio- psychological framework makes man a complex one and
the systems approach tries to study his/her complexity and find solution to it.

IMPORTANCE OF OB:

1. Skill Improvement

Study of Organisational Behaviour helps to improve skills.

This includes the ability of employees and use of knowledge to become more
efficient.

Organisational Behaviour study also improves managers as well as other employees

work-skill.

2. Understanding Consumer Buying Behaviour

It also an important part to improve the marketing process by understanding

consumer buying behaviour.

3. Employee Motivation

Organisational Behaviour (OB) helps to understand the basis of Motivation and

different ways to motivate employees properly.
4. Nature of Employees

Understanding of personnel and employee nature is important to manage them

properly.

With the help of Organizational behaviour, we can understand whether employees or

people are –

 Introvert
 Extrovert
 Motivated
 Dominating
 Other
5. Anticipating Organisational events

The scientific study of behaviour helps to understand and predict organisational

events.

For example, Annual Business Planning, Demand Management, Product line

management, Production Planning, Resources Scheduling, Logistics etc.

6. Efficiency & Effectiveness

Study of organisational behaviour helps to increase efficiency and effectiveness of

the organisation

7. Better Environment of Organisation

OB helps to create a healthy, ethical and smooth environment in an organisation.

8. Optimum or Better Utilization of Resources

Study of OB helps to understand employees and their work style and skill better way.

By understanding this, management can train and motivate employees for optimum
utilization of resources.
9. the Goodwill of organization

Organisational Behaviour helps to improve Goodwill of organization.

2.Factors Influencing Individual Behaviour

Various factors affecting the individual behaviour is classified into following
categories: –

1. Personal Factors
2. Environmental Factors
3. Organizational Factors
Personal Factors
Personal factors are of 2 types: Biographic and Learned Characteristics

Biographic Characteristics: Biographic characteristics are genetic nature and are

inherited by individual by their parents or forefathers. These are gifted features that
an individual possesses by birth. All of these biographic characteristics are listed
below: –
 Psychical Characteristics- Personal characteristics relates to skin,
complexion, vision, height, weight, size of nose etc. which influence the
performance of individual. A person with good physical characteristics
has an attractive personality, they dress well and behave gently in an
organization.
 Age- Age is an individual inherited characteristic that is determined by
date of birth. Young people are expected to be more efficient,
energetic, risk-taking, innovative and ambitious.
 Gender- Gender is an inherited characteristic as being a men or
women is genetic in nature. Woman are expected to be more
emotional than men and generates high turnover rates. It is due to
more likeness of woman quitting their job citing personal reasons.
 Religion- Religious values of individual influence distinct aspects of
his/her behaviour in organization. Highly religious person is stricter
towards following moral values, ethics and code of conduct while
performing their roles.
 Marital Status- Researcher indicated that with marital status,
responsibilities of individual get inclined and for them having steady
proper job becomes more important. Such employees have less
absences, low turnovers and more job satisfaction.
Learned Characteristics: Learned characteristics refers to the changes in persons
behaviour that comes from his/her interactions with environment.
 Personality- Personality solely do not refer to physical characteristics
of person but indicates the growth of individual’s psychological system.
These are the personal traits of persons that comprises of patience,
extrovert Ness, dominance, aggressiveness etc.
 Perception- It is a viewpoint of individual through which it interprets a
particular situation. Perception is defined as a process via which
 information enters mind and an interpretation takes place for providing
some sensible meaning to world.
 Values- These are global beliefs that guides distinct actions and
judgements in several situations. It comprises of idea of an individual
that is based on good, right and desirable opinions.
Environmental Factors
The external environment has an effective role in influencing the individual
behaviour.

 Employment level- Employment opportunities available within the

country act as a major determinant of individual behaviour. In case of
less employment opportunities, he/she will remain stick to same job
level irrespective of how much satisfaction is attained. However, if
there are more employment opportunities available then employees will
shift to other jobs.
 Wages Rate- Monetary compensation is a major factor that every
employee considers before joining any organization. Therefore, a
decision whether to stay in a particular company or shift anywhere else
is taken on the basis of wages he/she is getting.
 General Economic Environment- Economic cycle in a country greatly
influences the behaviour of individual in an organization. They are
subject to retrenchment and layoffs. Job security and a stable income
are the most relevant factors of motivation for these types of
employees. Whereas, employees of public sector undertakings are not
affected by economic position within the country as they receive
their fixed salaries irrespective of economic conditions.
 Political Factors- Political factors indirectly influences the behaviour of
an individual. In a politically stable environment, there will be large
opportunities of steady job positions. It will provide better freedom to
individual which will influence their career choice, performance and jib
design.
Organizational Factors
Wide range of organizational factors influence behaviour of individual which are
listed below: –

 Physical Facilities- Physical environment at work place have a great

influence on behaviour of individual. It comprises of factors like lighting,
cleanliness, heat, noise level, office furnishing, strength of workers etc.
 Structure and Design- It is concerned with set-up design of
departments within an organization. Individual behaviour is influenced
by where an individual perfectly fits in a hierarchy of organization.
 Reward System- Fair reward system adopted by company for
compensating its employees enhances the overall performance and
behaviour of individual.
3.Models of Organizational Behaviour

Autocratic Model
 The autocratic model depends on power. Those who are in command must
have the power to demand ―you do this-or else, meaning that an employee
who does not follow orders will be penalized.
  In an autocratic environment the managerial orientation is formal, official
authority. This authority is delegated by right of command over the people to it
applies.
 Under autocratic environment the employee is obedience to a boss, not
respect for a manager.
 The psychological result for employees is dependence on their boss, whose
power to hire, fire, and ―perspire they is almost absolute.
 The boss pays minimum wages because minimum performance is given
by employees. They are willing to give minimum performance-though
sometimes reluctantly-because they must satisfy subsistence needs for
themselves and their families.
 Some employees give higher performance because of internal
achievement drives, because they personally like their boss, because the
boss is ―a natural-born leader, or because of some other factor; but most of
them give only minimum performance.
The Custodial Model
 A successful custodial approach depends on economic resources.
 This approach depends on money to pay wages and benefits.
 Since employee’s physical needs are already reasonably met, the employer
looks to security needs as a motivating force. If an organization does not have
the wealth to provide pensions and pay other benefits, it cannot follow a
custodial approach.
 The custodial approach leads to employee dependence on the organization.
Rather than being dependence on their boss for their weekly bread,
employees now depend on organizations for their security and welfare.
 Employees working in a custodial environment become psychologically
preoccupied with their economic rewards and benefits. As a result of their
treatment, they are well maintained and contended. However, contentment
does not necessarily produce strong motivation; it may produce only passive
cooperation. The result tends to be those employees do not perform much
more effectively than under the old autocratic approach.
The Supportive Model
 The supportive model depends on leadership instead of power or money.
Through leadership, management provides a climate to help employees grow
and accomplish in the interests of the organization the things of which they
are capable.
 The leader assumes that workers are not by nature passive and resistant to
organizational needs, but that they are made so by an inadequately
supportive climate at work. They will take responsibility, develop a drive to
contribute, and improve themselves if management will give them a chance.
Management orientation, therefore, is to support the employee’s job
performance rather than to simply support employee benefit payments as in
the custodial approach.
 Since management supports employees in their work, the psychological result
is a feeling of participation and task involvement in the organization.
 Employee may say ―we instead of ―they when referring to their
organization.
 Employees are more strongly motivated than by earlier models because of
their status and recognition needs are better met. Thus, they have awakened
drives for work.
The Collegial Model
 A useful extension of the supportive model is the collegial model. The term
―collegial relates to a body of people working together cooperatively.
 The collegial model depends on management’s building a feeling of
partnership with employees. The result is that employees feel needed and
useful. They feel that managers are contributing also, so it is easy to accept
and respect their roles in their organization. Managers are seen as joint
contributors rather than as bosses.
 The managerial orientation is toward teamwork. Management is the coach
that builds a better team
 The employee’s response to this situation is responsibility. For example,
employees produce quality work not because management tells them to do so
or because the inspector will catch them if they do not, but because they feel
inside themselves an obligation to provide others with high quality. They also
feel an obligation to uphold quality standards that will bring credit to their jobs
and company.
 The psychological result of the collegial approach for the employee is self-
discipline. Feeling responsible, employees discipline themselves for
performance on the team in the same way that the members of a football
team discipline themselves to training standards and the rules of the game.
 In this kind of environment employees normally feel some degree of fulfilment,
worthwhile contribution, and self-actualization, even though the amount may
be modest in some situation. This self-actualization will lead to moderate
enthusiasm in performance.
The System Model
 An emerging model of organization behaviour is the system model. It is the
result of a strong search for higher meaning at work by many of today’s
employees; they want more than just a pay check and job security from their
jobs. Since they are being asked to spend many hours of their day at work,
they want a work context there that is ethical, infused with integrity and trust,
and provides an opportunity to experience a growing sense of community
among co-workers.
 To accomplish this, managers must increasingly demonstrate a sense of
caring and compassion, being sensitive to the needs of a diverse workforce
with rapidly changing needs and complex personal and family needs.
 In response, many employees embrace the goal of organizational
effectiveness, and reorganize the mutuality of company-employee obligations
 in a system viewpoint. They experience a sense of psychological ownership
for the organization and its product and services.
 They go beyond the self-discipline of the collegial approach until they reach a
state of self-motivation, in which they take responsibility for their own goals
and actions.
 As a result, the employee needs that are met are wide-ranging but often
include the highest-order needs (e.g., social, status, esteem, autonomy, and
self-actualization). Because it provides employees an opportunity to meet
these needs through their work as their work as well as understand the
organization’s perspectives, this new model can engender employees’
passion and commitment to organizational goals. They are inspired; they feel
important; they believe in the usefulness and viability of their system for the
common good.

 Limitations of organisational behaviour

 1. Emphasis on principles, not practice - Organizational behaviour is

mostly a theoretical subject, it does not lay much emphasis on improving
behaviour.

 2. Descriptive only, not prescriptive – Organizational behaviour is the only

descriptive subject. It does not offer any solutions, commands, or instructions
for problem-solving; it is limited to the disclosure of problems.
 3. No improvement in industrial relations - Organizational behaviour has
not been successful in preventing industrial disputes, conflicts, and production
block activities in the subject organization. In spite of implementing the
procedures of organizational behaviour, there has been no reduction in
incidents like strikes, lockouts, sabotage, in the institutions.

 4. Dual Personality - The only dual character has been created in

organizational behaviour management. Managers talk only about ideals in the
name of change or development, but their own behaviour is double. They
emphasize bringing changes in the behaviour and attitudes of the employees
without changing themselves. Managers give the status of servants to the
employees and behave inhumanly. All this reveals his dual personality.
 5. Prejudice – There is a possibility of favouritism with some individuals in
organizational behaviour. Those who do not get justice, they remain
dissatisfied. They do not take any interest in performing tasks and discharging
responsibilities.

 WHY OB IS A CONTRIBUTORY FIELD?

ANS. Organizational Behaviour (OB) refers to the study of human behaviour in

organization. There are some important disciplines in organizational behaviour field
which developed it extensively. Since, organization affects an individual and is affected
by the individual, so both have to be read together.
People do not work in isolation. When they join an organization, they come in contact
with other people and organizations. When they get exposed to managers, co-workers,
organizational policies, formal structure with their prior experience, values, culture etc.,
they change. The organization is also affected by individual’s presence, and ultimately
by their absence. Therefore, in the study of organizational behaviour the methods should
consider the ways in which individuals and organizations interact.

Important Disciplines in the Organizational Behaviour Field

There are some important disciplines in the organizational behaviour field that have
developed it extensively. Due to the increase in organizational complexity, different types
of knowledge are required and helped in many ways.

6 Contributing Disciplines in the Organizational Behaviour Field are: –

1. Psychology;
2. Social Psychology;
3. Sociology;
4. Anthropology;
5. Political Sciences; and
6. Economics.
Explanation
Psychology: – The word psychology comes from the Greek word ‘psyche’ which means
spirit. Psychology is the science that attempts to measure, explain and sometimes
change the behaviour of human beings. Modern psychology is almost universally
defined as the science of behaviour that is almost identical to the science of behaviour in
general. Psychology has a great influence on the field of organizational behaviour.
Psychology deals with individual behaviour.

Psychology studies the behaviour of different people in different situations like normal,
abnormal, social, industrial legal, childhood, adolescence, old age etc. It also studies the
processes of human behaviour, such as learning, motivation, perception, individual and
group decision-making – organization, group process, satisfaction, communication,
selection, and pattern-making of influence in training.

It is a science, which describes the change of behaviour of human and other animals. It
is concerned with the more study of human behaviour.

Understanding Psychological principles and its models help significantly in gaining the
knowledge of determinants of individual behaviour such as: –
1. Learning;
2. Personality;
3. Perception;
4. Individual decision-making;
5. Performance appraised;
6. Attitude measurement;
7. Employee selected;
8. Work design;
9. Motivation;
10. Emotions;
11. Work strain; and
12. Job satisfaction.
Social Psychology: – Social psychology is that part of psychology that integrates the
concepts of psychology and sociology. In other words, social psychology studies all
aspects of social behaviour and social thought – how people think about and interact
with others. It deals with how people are affected by other individuals who are physically
present or who are imagined to be present or even whose presence is implied. One of
the areas that has attracted considerable attention from social psychology is the change
in legislation to reduce its resistance and implement it successfully.

Additionally, social psychology is useful in the areas of measuring and understanding

changing attitudes; communication patterns; The ways in which group activities can
satisfy individual needs and group decision-making processes. It focuses on the effect
people have on each other. It is a field within psychology that blends concepts from
psychology and sociology and that focuses on the impact of people on each other.

The major contributions of social psychology to OB are as follows: –

1. Behaviour change
2. Attitude change
3. Communication
4. Group process
5. Group decision-making
Sociology: – Sociology is the study of group behaviour. It can be described as an
academic discipline that uses the scientific method to accumulate knowledge about the
social behaviour of an individual. In other words, it studies the behaviour of people in
relation to their fellow human beings.
Some of the areas within the OB that have received valuable input from sociologists
include group dynamics, organizational culture, formal organization theory and structure,
organizational technology, bureaucracy, communication power, conflict, and inter-group
behaviour. As for managerial practice, its contributions are mainly in the areas of
bureaucracy, role structure, social system theory, group dynamics, impact of
industrialization on social behaviour, etc.

Sociological concepts, theories, models, and techniques help significantly to understand

better the group dynamics, organizational culture, formal organization theory and
structure, corporate technology, bureaucracy, communications, power, conflict, and
intergroup behaviour.

Most sociologists today identify the discipline by using one of the three statements, key
concepts of Sociology are: –
1. Sociology deals with human interaction arid this communication is the key
influencing factor among people in social settings;
2. Sociology is a study of plural behaviour. Two or more interacting individuals
constitute a plurality pattern of behaviour; and
3. Sociology is the systematic study of social systems.
Anthropology: – The word anthropology combines the Greek word ‘anthropoid’
meaning man and the noun ending ‘loge’ meaning science. Thus, anthropology can be
defined as the science of man. The main aim of anthropology is to acquire a better
understanding of the relationship between the human being and the environment.
Adaptations to surroundings constitute culture. The manner in which people view their
surroundings is a part of the culture. It is also known as the ‘Science of Humanity’ which
covers a wide range of studies including the evolutionary history of humans and the
characteristics of different societies, cultures and human groups.
In other words, the field of anthropology studies the relationship between individuals and
their environment. Groups of individuals living together form a set of shared ideas called
a culture. Culture is rooted in a system of symbols shared by a group of people and
reflected in their language and beliefs.

The culture of a civilization or the subculture of a defined group is transmitted by stories

and myths told by the members of the group. These stories and myths help groups
understand who they are and what things are important.

It is the study of society to learn human beings and their activities. The major
contributions of Anthropology in the field of OB are as follows: –
1. Comparative values
2. Comparative attitudes
3. Cross-culture analysis
4. Organization environment
5. Organization culture
Political Science: – Political science is the branch of social science that deals with
politics in its theory and practice and with the analysis of various political systems and
political practices. Political scientists study the behaviour of individuals and groups in the
political environment. Contributions of political scientists are significant to the
understanding of behaviour in organizations. Political scientists study the behaviour of
individuals and groups within a political environment.
They contribute to understanding the dynamics of power centres, structuring of conflict
and conflict resolution tactics, allocation of power and how people manipulate power for
individual self-interest.

Specific topics of concern to political scientists include conflict resolution, group

alliances, the allocation of power, and how people manipulate power for personal gain.
In other words, political science helps us understand the dynamics of power and politics
within organizations, as there is usually a hierarchical structure of different organizational
levels of managers and subordinates.
It is the study of the behaviour of individuals and group within or political environment.
The main contribution of political science in the field of OB have been concerned with: –
1. Conflict
2. Intra-organizational policies
3. Power
In a business field, organizations wanted to attain supremacy in their field and indulge in
politicking activities to gain maximum advantages by following certain tasks like
Machiavellianism, coalition formation, malpractices, etc. The knowledge of political
science can be utilized in the study the behaviour of employees, executives at micro as
well as macro level.

Economics: – Economists study the distribution, consumption and production of goods

and services. Economics contributes to the behaviour of the organization by designing
structure. The organization and its structure are influenced by transaction cost
economics. The cost factor that exchanges the market is known as transaction cost
economics. It identifies the extent to which the structure and size of the organization
varies as a result of efforts to avoid market failures by reducing production and
transaction costs within the limits of human and environmental factors.
Economic pressures determine the appropriate structure through either market, hybrids
network structure or hierarchy to organize transactions effectively. A firm can be
unselected from the market if possible, failing to settle in the best possible way.
Environments are dynamic, organization must respond to change its structure. Shifts
from large firm hierarchies to networks or to market relations are in terms of changing
conditions of the economising function. Labour market dynamics, productivity, human
resource planning and forecasting, and cost-benefit analysis are the common interests
shared by economist.

So, we can assume that there are various types of disciplines in organizational
behaviour. They, directly and indirectly, influence the overall activities of OB

4. 14 Management Principles by Henri Fayol:

14 management principles are;

 Division of Work.
 Balancing Authority and Responsibility.
 Discipline.
 Unity of Command.
 Unity of Direction.
 Subordination of Individual Interests to the General Interest.
 Remuneration.
 Centralization.
 Scalar Chain.
 Order.
 Equity.
 Stability of Tenure of Personnel.
 Initiative.
 Esprit De Corps.

1. Division of Work

Dividing the full work of the organization among individuals and creating
departments is called the division of work.

Division of work leads to specialization, and specialization helps to increases

efficiency and efficiency which results in improvements in the productivity and
profitability of the organization.

2. Balancing Authority and Responsibility

Authority must be equal to Responsibility.

According to Henri Fayol, there should be a balance between Authority (Power)

and Responsibility (Duties). The right to give orders should not be considered
without reference to responsibility.
If the authority is more than responsibility then chances are that a manager may
misuse it. If responsibility is more than authority then he may feel frustrated.

3. Discipline

Outward mark of respect in accordance with formal or informal agreements between

a firm and its employees.

Discipline means respect for the rules and regulations of the organization. Discipline
may be Self-discipline, or it may be Enforced discipline.

No slacking or bending of rules, not allowed in any organization. The works must
respect the rules that run the organization. To establish discipline, good supervision
and impartial judgment are needed.

4. Unity of Command

According to this principle, a subordinate (employee) must have and receive orders
from only one superior (boss or manager).

To put it another way, a subordinate must report to only one superior. It helps in
preventing dual subordination. This decreases the possibilities of “Dual
subordination” which creates a problem is a function of managers.

5. Unity of Direction

One head and one plan for a group of activities with the same objective. All activities
which have the same objective must be directed by one manager, and he must use
one plan.

This is called the Unity of Direction.

For example, all marketing activities such as advertising, sales promotion, pricing
policy, etc., must be directed by only one manager.

He must use only one plan for all the marketing activities. Unity of direction means
activities aimed at the same objective should be organized so that there are one
plan and one person in charge.

6. Subordination of Individual Interests to the General Interest

The interest of one individual or one group should not prevail over the general good.
The individual interest should be given less importance, while the general interest
should be given the most importance.
If not, the organization will collapse. The interest of the organizational goal should
not be sabotaged by the interest of an individual or on the group.

7. Remuneration

Remuneration is the price for services received. Pay should be fair to both the
employee and the firm.

If an organization wants efficient employees and best performance, then it should

have a good remuneration policy.

This policy should give maximum satisfaction to both employers and employees. It
should include both financial and non-financial incentives.

Compensation should be based on a systematic attempt to reward good

performance.

8. Centralization

It is always present to a greater or lesser extent, depending on the size of the

company and the quality of its managers. In centralization, the authority is
concentrated only in a few hands.

However, in decentralization, the authority is distributed to all the levels of

management. No organization can be completely centralized or decentralized.

If there is complete centralization, then the subordinates will have no authority

(power) to carry out their responsibility (duties). Similarly, if there is complete
decentralization, then the superior will have no authority to control the organization.

Therefore, there should be a balance between centralization and decentralization.

The degree to which centralization or decentralization should be adopted depends

on the specific organization, but managers should retain final responsibility but
should give subordinates enough authority to do the tasks successfully.

9. Scalar Chain

The chain of command, sometimes called the scalar chain, is the formal line of
authority, communication, and responsibility within an organization.

The chain of command is usually depicted on an organizational chart, which

identifies the superior and subordinate relationships in the organizational structure.
Or it is the line of authority from top to bottom of the organization. This chain
implements the unity-of-command principle and allows the orderly flow of
information.

Under the unity of command principle, the instructions flow downward along the
chain of command and accountability flows upward.

More clear-cut the chain of command, the more effective the decision-making
process and the greater the efficiency.

10. Order

A place for everything and everything in its place’ the right man in the right place.
There should be an Order for material/things and people in the organization.

Order for things is called Material Order and order for people is called ‘Social Order’.
Material Order refers to “a place for everything and everything in its place.”

Social Order refers to the selection of the “right man in the right place”.

There must be an orderly placement of the resources such as Men and Women,
Money, Materials, etc. Human and material resources must be in the right place at
the right time. Misplacement will lead to misuse and disorder.

11. Equity

While dealing with the employees a manager should use kindliness and justice
towards employees equally. Equity is a combination of kindness and justice.

It creates loyalty and devotion in the employees toward the organization. The equity
principle suggests that the managers must be kind as well as equally fair to the
subordinates.

12. Stability of Tenure of Personnel

Although it could take a lot of time, Employees need to be given fair enough time to
settle into their jobs. An employee needs time to learn his job and to become
efficient.

The employees should have job security because instability leads to inefficiency.
Successful firms usually had a stable group of employees.
13. Initiative

Without limits of authority and discipline, all levels of staff should be encouraged to
show initiative. Management should encourage initiative.

That is, they should encourage the employees to make their own plans and to
execute these plans. This is because an initiative gives satisfaction to the employees
and brings success to the organization.

It allows the subordinates to think out a plan and do what it takes to make it happen.

14. Esprit De Corps

Esprit de Corps means “Team Spirit”. Therefore, the management should create
unity, co-operation, and team-spirit among the employees.

They should avoid dividing and rule policy. Harmony, cohesion among personnel. It’s
a great source of strength in the organization. It is a quality in every successful
business.

These principles are guidelines for every management function. The manager must
act according to the 14 principles of management; in order to reach the goal and
create a surplus.

These 14 management principles of Henri Fayol are universally accepted. they work
as a guideline for managers to do their job according to their responsibility.

 How are attitudes formed?

Some of the learned characteristics responsible for attitude formation are:
1. Experiences
2. Perceptual biases
3. Observation of another person attitude
4. Association
5. Personality
Attitude Formation
Experiences
Our personal experiences with people and situations develop our attitude towards
such persons and situations.

Through job experience, people develop attitudes towards working conditions,

salaries, supervision, group dynamics and so on.

Perceptual biases
Perception is the result of a complex interaction of various senses such as feelings,
seeing, hearing and so on and plays an important part in our attitude and
behavioural formation.
For example, if a manager perceives a subordinate’s ability as limited, he will give
him limited responsibility. Similarly, we lose many good friends due to our changed
perception about them.

Observation of another person attitude

When we like someone, we try to emulate that person’s attitude.

For example, when we are impressed by someone keeping calm under stressful
circumstances and we appreciate such calmness, we might try to do the same.

Association
Our association with the group we belong to strongly influences our attitude. Our
close association with a group would encourage us to be consistent with the attitude
of the group.

Personality
Personality is a set of traits and characteristics, habit patterns and conditioned
responses to certain stimuli that formulate the impression that a person makes upon
others and this impression is a function of a person’s attitude.

Consumer Attitude Formation

Attitudes are learned though there are different approaches on how learning works
as is acquired by individuals. Following factors lead to consumer attitude formation:

1. Economic Factors
2. Family Factors
3. Social Factors
4. Political Factors
5. Psychological Factors
6. Personality Factors
7. Reference Group Factors

 MODEL OF MAN

1. Rational Economic Man

From the organisational perspective, managers had, for a long time, viewed their

employees as rational beings who are primarily motivated by money. They took the

‘ECONOMIC MAN’ and ‘RATIONAL MAN’ approach to understand and predict the

human behaviour. This model is based on classical organisation theory.

2. Social Man:

With the passage of time, the advocates of human relations school recognized that

there is a lot more to human behaviour than just being social man economic and

rational. Advocates of this school considered the worker as a social man. They

recognized that man is a part of the social group he is influenced by the social forces

and seeks satisfaction of the needs which are related to the maintenance of his

social relationships.

3. Organisational Man:

Organisation man is an extension of social man. The concept of organisation man

was introduced by William Whyte. He believed that it is very important for a person to

be loyal to the organisation and cooperative with the fellow workers. Any person who

believes in this value system and acts in this way is an organisation man. The basis

of this concept is and that every individual should sacrifice his individuality for the

sake of the group and the organisation.

4. The Self Actuating Man:

The concept of self-actuating man is a further extension of social man and the

organisation man models. The social man concept assumes that the formation of

social groups is the basis of satisfaction for the individuals.

5. Complex Man:

Complex man presents the real picture of human picture of human behaviour. All the

previous models make very simplistic assumptions about people and their behaviour.

5. Personality is the totality of habits, attitudes, and traits that result from
socialization and characterizes us in our relationships with others.”

Determinants of Personality
The determinants of personality can be grouped in five broad categories:
 Biological A Factors

 Cultural Factors
  Family Factors
 Social Factors
 Situational Factors
Biological Factors
The study of the biological contributions to personality may be studied under three
heads:

Heredity
Heredity refers to those factors that were determined at conception. Physical stature,
facial attractiveness, sex, temperament, muscle composition and reflexes, energy
level, and biological rhythms are characteristics that are considered to be inherent
from one’s parents.
The heredity approach argues that the ultimate explanation of an individual’s
personality is the molecular structure of the genes, located in the chromosomes.

Brain
The second biological approach is to concentrate on the role that the brain plays in
personality. The psychologists are unable to prove empirically the contribution of the
human brain in influencing personality.

Preliminary results from the electrical stimulation of the brain (ESB) research give
an indication that a better understanding of human personality and behaviour might
come from the study of the brain.
Biofeedback
Until recently, physiologists and psychologists felt that certain biological functions
such as brainwave patterns, gastric and hormonal secretions, and fluctuations in
blood pressure and skin temperature were beyond conscious control.

Now some scientists believe that these involuntary functions can be consciously
controlled through biofeedback techniques. In BFT, the individual learns the internal
rhythms of a particular body process through electronic signals that are feedback
from equipment that is wired to the body.

Physical Features
A vital ingredient of the personality, an individual’s external appearance, is
biologically determined. The fact that a person is tall or short, fat or skinny, black or
white will influence the person’s effect on others and this in turn, will affect the self-
concept.
Cultural Factors
Among the factors that influence personality formation is the culture in which we are
raised, early conditioning, norms prevailing within the family, friends and social
groups and other miscellaneous experiences that impact us.
The culture largely determines attitudes towards independence, aggression,
competition, cooperation and a host of other human responses.
According to Paul H Musson, “each culture expects, and trains, its members to
behave in ways that are acceptable to the group. To a marked degree, the child’s
cultural group defines the range of experiences and situations he is likely to
encounter and the values and personality characteristics that will be reinforced and
hence learned.”
Family Factors
Whereas the culture generally prescribes and limits what a person can be taught, it
is the family, and later the social group, which selects, interprets and dispenses the
culture. Thus, the family probably has the most significant impact on early
personality development.

A substantial amount of empirical evidence indicates that the overall home

environment created by the parents, in addition to their direct influence, is critical to
personality development.
The parents play an especially important part in the identification process, which is
important to the person’s early development.

According to Michel, the process can be examined from three different perspectives.
 Identification can be viewed as the similarity of behaviour including feelings
and attitudes between child and model.

 Identification can be looked at as the child’s motives or desires to be like

the model.

 It can be viewed as the process through which the child actually takes on
the attributes of the model.
From all three perspectives, the identification process is fundamental to the
understanding of personality development. The home environment also influences
the personality of an individual. Siblings (brothers and sisters) also contribute to
personality.

Social Factors
There is increasing recognition given to the role of other relevant persons, groups
and especially organisations, which greatly influence an individual’s personality. This
is commonly called the socialization process.

Socialization involves the process by which a person acquires, from the enormously
wide range of behavioural potentialities that are open to him or her, those that are
ultimately synthesized and absorbed.
Socialization starts with the initial contact between a mother and her new infant. After
infancy, other members of the immediate family – father, brothers, sisters and close
relatives or friends, then the social group: peers, school friends and members of the
work group – play influential roles.
Situational Factors
Human personality is also influenced by situational factors. The effect of the
environment is quite strong. Knowledge, skill and language are obviously acquired
and represent important modifications of behaviour.
An individual’s personality, while generally stable and consistent, does change in
different situations. The varying demands of different situations call forth different
aspects of one’s personality
Traits:

1. Authoritarianism

Refers to a demand for strict obedience of authority and rules. Features of

Authoritarians:

 Conventional and dominating

 Prefer that work be done according to rules
 Believe in fate
 Believe in the existence of two types of people in the world, strong and
weak
 Prefer stable and structured work environments.
2. Locus of Control

This means an individual’s belief that events are either in one’s control (internal locus
of control) or are governed by factors beyond one’s control (external locus of
control).

Internal: People of this type believe they can control events or outcomes.

Characteristics of Internal

 Have control over self-behaviour

 Actively seek additional information for decision making and have low
absenteeism rates
 Prefer participative management
 Hold jobs of higher status and advance rapidly in their careers
External: People of this type believe that events or outcomes control them.

Characteristics of External

 Less satisfied with their jobs, have higher absenteeism rates and are
alienated from the work setting to a greater extent
  Prefer directive management
 Greater interest in job security over career advancement
 Learn more about extrinsic awards, destiny, chance, or other people.
3. Machiavellianism

Also known as Mach, this trait is named after Niccolò Machiavelli, who wrote in the
16th century about gaining and using power.

Characteristics of high MACH people:

 Pragmatic, keep an emotional distance, and hold that ends can justify
means.
 Manipulative and do not hesitate to exploit others to serve self-goals.
 Flourish when communicating in person rather than indirectly.
 Successful when a scenario has minimal rules and regulations.
 High self-confidence and high self-esteem
4. Introversion and Extroversion

Characteristics of Introverts:

 Reserved, quiet and timid

 Low on energy and activity levels
 Lack of social involvement
 Need more time by themselves to recharge
Characteristics of Extroverts:

 High on energy
 Enjoy being in the spotlight
 Assertive and sociable
 Action-oriented individuals who like to explore new opportunities
5. Self-Esteem

Refers to the feeling of like or dislike of oneself. Self-esteem is the level of respect
individuals have for themselves.
Characteristics of High Self-Esteem People:

 Believe they can succeed at work and have greater levels of job
satisfaction.
 Take higher risks in job selection, more likely to choose unconventional
jobs.
 Friendly, affectionate, cultivate interpersonal relationships easily and
look for the good in others.
Characteristics of Low Self-Esteem People:

 Susceptible to external influences.

 Concerned with pleasing others when in managerial positions.
 Critical of other people, generally depressed, and blame external
factors or other people for their own failures.
6. Achievement Orientation

Characteristics of high achievement-oriented people:

 Set high standards and devise new methods to enhance performance.

 Attempt to alleviate difficulties and take calculated risks.
 Never fully satisfied and constantly seek novel ways of doing things.
Characteristics of people with low achievement orientation:

 Prefer to work in their comfort zone.

 Unable to complete work on time.
 Depend on other people for setting targets and standards.
7. Risk-Taking

 Refers to an individual’s risk-taking appetite for achieving positive

outcomes.
 Managers with high risk-taking capacity: Quick on their feet and
useless information in decision making.
 Managers with low risk-taking capacity: Slow on their feet and need
greater amounts of information to make a decision.
 A few jobs demand persons with high-risk appetites, for example,
brokers in a brokerage firm are required to make rapid decisions to be
effective.
  In contrast, in other jobs, risk-taking could prove to be a major
obstacle, for example, accountants in auditing functions.
8. Self-Monitoring

This personality trait is a measure of a person’s ability to adapt his or her behaviour
in the light of external situational factors.

Characteristics of High Self-Monitors:

 Show considerable adaptability, that is, they behave differently in

different situations
 Concerned about others’ perception of them and modulate self-
behaviour based on the situation.
 Show greater career mobility and receive better promotions.
 Characteristics of Low Self-Monitors:
 Less concerned about people’s perceptions of them.
 Tend to expose their true dispositions and attitudes.
 Cannot adapt their behaviour to various situations.

9. Type A and Type B Personalities

Characteristics of Type ‘A’ personality:

 Always moving, walking, and eating rapidly

 Excessively time conscious
 Are impatient about the rate at which most events occur
 Strive to take on multiple tasks and cannot cope with leisure
 Obsessed with numbers, measure success in terms of objects
acquired.
 Are better on tasks requiring speed and hard work.
Great salespersons are usually Type ‘A’ personalities.

Characteristics of Type ‘B’ personality:

 Do not exhibit a sense of time urgency

  Feel no compulsion to display or discuss achievements or
accomplishments unless warranted by a situation.
 Play for leisure.
 Can relax without guilt.
 Do not strive to handle more things simultaneously.
 Perform better on complex tasks involving judgment and accuracy.
Theories of Personality
The theories of personality have been grouped as:
 Psychoanalytic Theory

 Type Theories
 Trait Theories
 Self-Theory

Psychoanalytic Theory
The Psychoanalytic theory of personality has held the interest of psychologists
and psychiatrists for a long time. Sigmund Freud, its formulator, was quite an
influence. It attends to emphasizes three main issues i.e., the id, the ego and the
superego.
Components of Psychoanalytic Theory
Id
The id is the only part of the personality that is present at birth. It is inherited,
primitive, inaccessible and completely unconscious.
The id operates according to the pleasure principle, that is, to seek pleasure,
avoid pain and gain immediate gratification of its wishes.
The id contains:
(a) The life instincts, which are sexual instincts and biological urges such as hunger
and thirst

(b) The death instinct, which accounts for our aggressive and destructive impulses.
Ego
The ego is the logical, rational, realistic part of the personality. The ego evolves from
the id and draws its energy from the id.
One of the functions of the ego is to satisfy the id’s urges. But the ego, which is
mostly conscious, acts according to the reality principle. It must consider the
constraints of the real world in determining appropriate times, places, and object for
gratification of the id’s wishes.
Superego
When the child is age 5 or 6 the superego – the moral component of the personality
– is formed.
The superego has two parts:
(a) The “conscience“, consisting of all the behaviours for which we have been
punished and about which we feel guilty

(b) The “ego ideal“, containing the behaviours for which we have been praised and
rewarded and about which we feel pride and satisfaction.
In its quest for moral perfection, the superego, a moral guide, sets up signposts that
define and limit the flexibility of ego.

Type Theories
The type theories represent an attempt to put some degree of order into the chaos
of personality theory.
The type theory represents an attempt to scientifically describe personality by
classifying individuals into convenient categories.
Two categories of type theories of personality are explained below:
Sheldon Physiognomy Theory
William Sheldon has presented a unique body-type temperamental model that
represents a link between certain anatomical features and psychological traits with
distinguishing characteristics of an individual and his behaviour.

Sheldon identifies three body types:

 Endomorph: He is bulky and beloved. Sheldon’s endomorph to be rather
fat, thick in proportion to his height.

His personality temperament is viscerotropic (the person seeks comfort,

loves fine food, eats too much, is jovial, affectionate and liked by all).

 Mesomorph: He is basically strong, athletic and tough. All appreciate his

physique. In fact, it is this personality all other “morphs” wish for.

According to Sheldon, he will tend to be somatotopic (he is fond of

muscular activity; he tends to be highly aggressive, and self-assertive).

 Ectomorph: These people are thin, long and poorly developed physically.

Though physically weak, he leads the league in the intelligent department.

Carl Jung Extrovert Introvert Theory
The way to type personality is in terms of behaviour or
psychological factors. Jung’s introvert and extrovert types are an example.
However, as Carl Jung himself pointed out, the introvert-extrovert typology turns out
to be more in the nature of a continuum than discrete, separate types. Carl Jung
proposed his own two-part theory of personality.
Carl Jung two types are:
 Extrovert: They are optimistic, outgoing, gregarious and sociable.
Extroverts are basically objective, reality-oriented individuals who are more
doers than thinkers.

 Introverts: By contrast, introverts are more inward-directed people. They

are less sociable, withdrawn and absorbed in inner life. They tend to be
guided by their own ideas and philosophy.
Few people are complete introverts or extroverts, but the mixture of these two
ingredients determines the kind of overall personality of an individual.

Trait Theories
Some early personality researchers believed that to understand individuals, we must
break down behaviour patterns into a series of observable traits.

According to trait theory, a personality trait can be defined as an “enduring attribute

of a person that appears consistently in a variety of situations”. In combination, such
traits distinguish one personality from another.
A trait is a personal characteristic that is used to describe and explain personality. It
is a list of relatively stable and consistent personal characteristics.

Gordon Allport Personality Traits

Gordon Allport claims that personality traits are real entities, physically located
somewhere in the brain. We each inherit our own unique set of raw material for given
traits, which are then shaped by our experiences.
Traits describe the particular way we respond to the environment and the
consistency of that response. If we are shy, we respond to strangers differently than
if we are friendly; if we are self-confident,

Gordon identified two main categories of traits:

1. Common Traits: Common traits are those we share or hold in common with most
others in our own culture.
2. Individual Traits: According to Allport, there are three individual traits: cardinal,
central and secondary traits.
 Cardinal Traits: A cardinal trait is “so pervasive and outstanding in a life
that almost every act seems traceable to its influence”.
  Central Traits: According to Allport, are those that we would “mention in
writing a careful letter of recommendation”.

 Secondary Traits: The secondary traits are less obvious, less consistent
and not as critical in defining our personality as the cardinal and central
traits. Examples of secondary traits are food and music preferences.
Raymond Cattell 16 Personality Factors
Raymond Cattell considered personality to be a pattern of traits providing the key to
understanding and predicting a person’s behaviour.
Cattell identified two types:
 Surface Traits: Observable qualities of a person like honest, helpful, kind,
generous etc., Cattell called these “surface traits”.

 Source Traits: Make up the most basic personality structure and,

according to Cattell, actually cause behaviour. Intelligence is a source trait,
and every person has a certain amount of it but, obviously not exactly the
same amount or the same kind.

Self-theory
The psychoanalytic, type and trait theories represent the more traditional
approach to explaining the complex human personality.
Self-theory rejects both psychoanalytic and behaviouristic conceptions of human
nature as too mechanistic, portraying people as creatures helplessly buffeted about
by internal instincts or external stimuli.
Carl Rogers is most closely associated with his approach of self-theory.
Rogers and his associates have developed this personality theory that places
emphasis on the individual as an initiating, creating, influential determinant of
behaviour within the environmental framework.

According to Rogers basic ingredients of personality:

Self-Actualization
Carl Rogers believed that humans have one basic motive that is the tendency to self-
actualize – i.e., to fulfil one’s potential and achieve the highest level of ‘human-
beingness’ we can.

Self-concept
Self-concept is defined as “the organized, consistent set of perceptions and beliefs
about oneself”.

The self-concept includes three components:

Self-worth
what we think about ourselves. Rogers believed feelings of self-worth developed in
early childhood and were formed from the interaction of the child with the mother and
father.

Self-image
How we see ourselves, which is important to good psychological health. Self-image
includes the influence of our body image on inner personality.

Ideal self
This is the person who we would like to be. It consists of our goals and ambitions in
life, and is dynamic – i.e., forever changing. The ideal self in childhood is not the
ideal self in our teens or late twenties etc.

7. Sensation vs Perception

1. The sensation is the response of the person’s sensory organs

to the events that take place in the environment. There are
five senses i.e., hearing, touch, smell, vision, and taste, which
constantly receive stimuli, which can be internal or external to
the human body. Conversely, perception is all about
correlating, integrating, and comprehending various
sensations and information from sensory organs through
which an individual recognizes things and objects.
2. While sensation provides raw data, perception develops it into
our experience.
3. The sensation is the initial impression accumulated by sense
organs. And on interpreting this impression, when some
meaning is added to it, it turns out as perception.
4. Sensation ends with the beginning of perception, whereas the
end result of perception is the action or change in the person’s
attitude.
5. Sensation deals with the elementary behaviour of the person
that is based on physiological functioning or biological
process. In contrast, a perception is a complex form of these
simple experiences and so the process is cognitive and
psychological.
6. The sensation is something that makes an individual aware of
the stimuli, whereas perception gives meaning to the stimuli.
 7. During the process of sensation, only the sensory organs of
the individual are active. But, during the process of perception,
all the parts of the body become active.
8. The sensation is the initial conscious response of the brain to
the stimuli or it can be understood as the first step in the
direction of perception, whereas perception is the second or
say direct response to the sensation and an indirect response
to the physical stimulus.
9. Example

 Perception of a flower encompasses the experience of

sensation such as its colour, smell, and touch.
 Perception of broccoli involves the experience of
sensations such as taste, colour, and touch.

Process of Perception – Under the process of perception a person chooses

information from his surrounding environment, organises this information and then
interprets it. As a result of its ideas, view point, values, feelings and behaviour are
formed. The process of perception has been shown in the following: Input-
throughput output model in the following diagram:

(A) Perceptual Inputs

Perception input means the stimuli available in the environment. These stimuli
include objects, events and people. When a person comes in contact with the stimuli
in the environment, the process of perception starts. Characteristics of stimuli,
characteristics of the perceiver himself and the situation have a significant role to
play in the choice of stimuli by an individual. In reality, perceptual inputs are not a
part of the process of perception but it is needed to start the process of perception.
(B) Perceptual Throughputs
Perceptual throughputs are in reality the process of perception. Under it perceptual
inputs are converted into perceptual outputs. In other words, under it during
perceptual inputs the information received is processed to obtain outputs. The
following three factors are included under the perceptual throughput:

 Selection of Stimuli: There are numerous stimuli in the environment. Our

sensory organs are not capable enough to absorb all the stimuli. We get
attracted to only those stimuli which are related to us. The remaining
stimuli are simply ignored by us. In this way, at this stage some stimuli out
of a large number are selected. (Note: The choice of stimuli is influenced
by many factors which are detailed ahead in this chapter).
 Organisation of Stimuli: After selecting the stimuli, they are organised so
that they can be made meaningful. For example, if we want to draw
meanings of an incomplete picture, first of all we shall have to complete
the picture itself. Making the incomplete picture complete is called
organising. With the help of his cognitive power an individual visualises
the complete picture with his perception. Here we have a diagram.
Immediately, on seeing this diagram the image of a triangle emerges in
our mind. Some other person can look at this diagram as only three lines
instead of a triangle. With the help of his sensory system a man can the
information received by doing some plus-minus exercise and makes the
whole thing meaningful. This is what we call the organisation of stimuli.
This is what we call the organisation of stimuli. Note: Various methods of
organising the stimuli are given ahead in this chapter).
 Interpretation of Stimuli: After selecting and organising stimuli from the
environment an individual interprets them. In the diagram given under
point (ii) the moment an individuals looked at the three lines, he
immediately organised it. After organising these lines, he immediately
thought that it was a triangle. It should be kept in mind that every
individual interprets in a particular manner. If the perceiver is not
intelligent his interpretation can be wrong. If the wrong interpretation
happens to be favourable to him, he will not shirk in doing a wrong
interpretation. In the present example, let us say that the onlooker wants
to present it as a triangle but if the perceiver’s interest lies in seeing them
as three lines, then he will see only three lines and not a triangle. (Note:
While interpreting this diagram he will say that there are three lines (while
interpreting stimuli, a man can commit a mistake because of so many
causes. The causes of committing a mistake while interpreting the stimuli
find a place in this chapter.)

(C) Perceptual Outputs

When the perceptual inputs go through the process of perceptual throughputs,
perceptual outputs start appearing. In other words, at this stage the results of the
perception process can be seen. These results are in tune with the individual’s
opinions, attitudes, values, feelings, etc. The results of this perception process
influence the behaviour of an individual along with some other factors.

8. Motivation Definition
Motivation is the willingness to exert high levels of effort toward organisational goals,
conditioned by the effort’s ability to satisfy some individual needs.
Process of Motivation

Motivation concerns those processes which produces goal-directed behaviour. The

basic elements of the process of motivation are:

1. Behaviour: All behaviour is a series of activities. Behaviour is generally

motivated by a desire to achieve a goal. In order to predict and control
behaviour managers must understand the motives of people.
2. Motives: Motives prompt people to action. They are the primary energizers of
behaviour. They are the ‘ways’ of behaviour and mainsprings of action. They
are largely subjective and represent the mental feelings of human beings.
They are cognitive variables. They cause behaviour in many ways. They arise
continuously and determine the general direction of an individual’s behaviour.
3. Goals: Motives are directed toward goals. Motives generally create a state of
disequilibrium, physiological or psychological imbalance, within the
individuals. Attaining a goal will tend to restore physiological or psychological
balance. Goals are the ends which provide satisfaction of human wants. They
are outside an individual; they are hoped for incentives toward which needs
are directed. One person may satisfy his need for power by kicking
subordinates and another by becoming the president of a company. Thus, a
need can be satisfied by several alternate goals.


o Process theory
Motivation is goal-directed behaviour. People are motivated when they expect
that a course of action is likely to lead to the attainment of a goal and a valued
reward – one that satisfies their needs and wants.
1. Maslow’s Need Hierarchy Theory:

It is probably safe to say that the most well-known theory of motivation is Maslow’s

need hierarchy theory Maslow’s theory is based on the human needs. Drawing
chiefly on his clinical experience, he classified all human needs into a hierarchical

manner from the lower to the higher order.

In essence, he believed that once a given level of need is satisfied, it no longer

serves to motivate man. Then, the next higher level of need has to be activated in

order to motivate the man. Maslow identified five levels in his need hierarchy as

shown in figure 17.2.

These are now discussed one by one:

1. Physiological Needs:

These needs are basic to human life and, hence, include food, clothing, shelter, air,

water and necessities of life. These needs relate to the survival and maintenance of

human life. They exert tremendous influence on human behaviour. These needs are

to be met first at least partly before higher level needs emerge. Once physiological

needs are satisfied, they no longer motivate the man.

2. Safety Needs:

After satisfying the physiological needs, the next needs felt are called safety and

security needs. These needs find expression in such desires as economic security

and protection from physical dangers. Meeting these needs requires more money

and, hence, the individual is prompted to work more. Like physiological needs, these

become inactive once they are satisfied.

3. Social Needs:

Man is a social being. He is, therefore, interested in social interaction,

companionship, belongingness, etc. It is this socialising and belongingness why

individuals prefer to work in groups and especially older people go to work.

4. Esteem Needs:

These needs refer to self-esteem and self-respect. They include such needs which

indicate self-confidence, achievement, competence, knowledge and independence.

The fulfilment of esteem needs leads to self-confidence, strength and capability of

being useful in the organisation. However, inability to fulfil these needs results in

feeling like inferiority, weakness and helplessness.

5. Self-Actualisation Needs:

This level represents the culmination of all the lower, intermediate, and higher needs

of human beings. In other words, the final step under the need hierarchy model is the

need for self-actualization. This refers to fulfilment.

The term self-actualization was coined by Kurt Goldstein and means to become

actualized in what one is potentially good at. In effect, self- actualization is the

person’s motivation to transform perception of self into reality.

According to Maslow, the human needs follow a definite sequence of domination.

The second need does not arise until the first is reasonably satisfied, and the third

need does not emerge until the first two needs have been reasonably satisfied and it

goes on. The other side of the need hierarchy is that human needs are unlimited.

However, Maslow’s need hierarchy-theory is not without its detractors.

The main criticisms of the theory include the following:

1. The needs may or may not follow a definite hierarchical order. So, to say, there

may be overlapping in need hierarchy. For example, even if safety need is not

satisfied, the social need may emerge.

2. The need priority model may not apply at all times in all places.

3. Researches show that man’s behaviour at any time is mostly guided by multiplicity

of behaviour. Hence, Maslow’s preposition that one need is satisfied at one time is

also of doubtful validity.

4. In case of some people, the level of motivation may be permanently lower. For

example, a person suffering from chronic unemployment may remain satisfied for the

rest of his life if only he/she can get enough food.

Notwithstanding, Maslow’s need hierarchy theory has received wide recognition,

particularly among practicing managers. This can be attributed to the theory’s

intuitive logic and easy to understand. One researcher came to the conclusion that

theories that are intuitively strong die hard’.

2. Herzberg’s Motivation Hygiene Theory:

The psychologist Frederick Herzberg extended the work of Maslow and proposed a

new motivation theory popularly known as Herzberg’s Motivation Hygiene (Two-

Factor) Theory. Herzberg conducted a widely reported motivational study on 200

accountants and engineers employed by firms in and around Western Pennsylvania.

He asked these people to describe two important incidents at their jobs:

(1) When did you feel particularly good about your job, and

(2) When did you feel exceptionally bad about your job? He used the critical incident

method of obtaining data.

The responses when analysed were found quite interesting and fairly consistent. The

replies respondents gave when they felt good about their jobs were significantly

different from the replies given when they felt bad. Reported good feelings were

generally associated with job satisfaction, whereas bad feeling with job

dissatisfaction. Herzberg labelled the job satisfiers motivators, and he called job
dissatisfies hygiene or maintenance factors. Taken together, the motivators and

hygiene factors have become known as Herzberg’s two-factor theory of motivation

Herzberg’s motivational and hygiene factors have been shown in the Table 17.1

According to Herzberg, the opposite of satisfaction is not dissatisfaction. The

underlying reason, he says, is that removal of dissatisfying characteristics from a job

does not necessarily make the job satisfying. He believes in the existence of a dual

continuum. The opposite of ‘satisfaction’ is ‘no satisfaction’ and the opposite of

‘dissatisfaction’ is ‘no dissatisatisfaction’.

According to Herzberg, today’s motivators are tomorrow’s hygiene because the latter

stop influencing the behaviour of persons when they get them. Accordingly, one’s

hygiene may be the motivator of another.

However, Herzberg’s model is labelled with the following criticism also:

1. People generally tend to take credit themselves when things go well. They blame

failure on the external environment.

2. The theory basically explains job satisfaction, not motivation.

3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a

person may dislike part of his/ her job, still thinks the job acceptable.

4. This theory neglects situational variable to motivate an individual.

Because of its ubiquitous nature, salary commonly shows up as a motivator as well

as hygiene.

Regardless of criticism, Herzberg’s ‘two-factor motivation theory’ has been widely

read and a few managers seem untaminar with his recommendations. The main use
of his recommendations lies in planning and controlling of employee’s work.

3. McClelland’s Need Theory:

Another well-known need-based theory of motivation, as opposed to hierarchy of

needs of satisfaction-dissatisfaction, is the theory developed by McClelland and his

associates’. McClelland developed his theory based on Henry Murray’s developed

long list of motives and manifest needs used in his early studies of personality.

McClelland’s need-theory is closely associated with learning theory, because he

believed that needs are learned or acquired by the kinds of events people

experienced in their environment and culture.

He found that people who acquire a particular need behave differently from those

who do not have. His theory focuses on Murray’s three needs; achievement, power

and affiliation. In the literature, these three needs are abbreviated “n Ach”, “n Pow”,

and “n Aff” respectively’.

They are defined as follows:

Need for Achievement:

This is the drive to excel, to achieve in relation to a set of standard, and to strive to

succeed. In other words, need for achievement is a behaviour directed toward

competition with a standard of excellence. McClelland found that people with a high

need for achievement perform better than those with a moderate or low need for

achievement, and noted regional / national differences in achievement motivation.

Through his research, McClelland identified the following three characteristics

of high-need achievers:

1. High-need achievers have a strong desire to assume personal responsibility for

performing a task for finding a solution to a problem.

2. High-need achievers tend to set moderately difficult goals and take calculated

risks.

3. High-need achievers have a strong desire for performance feedback.

Need for Power:

The need for power is concerned with making an impact on others, the desire to

influence others, the urge to change people, and the desire to make a difference in

life. People with a high need for power are people who like to be in control of people

and events. This results in ultimate satisfaction to man.

People who have a high need for power are characterized by:

1. A desire to influence and direct somebody else.

2. A desire to exercise control over others.

3. A concern for maintaining leader-follower relations.

Need for Affiliation:

The need for affiliation is defined as a desire to establish and maintain friendly and

warm relations with other people’. The need for affiliation, in many ways, is similar to

Maslow’s social needs.

The people with high need for affiliation have these characteristics:
1. They have a strong desire for acceptance and approval from others.

2. They tend to conform to the wishes of those people whose friendship and

companionship they value.

3. They value the feelings of others.

Figure 17.2 is a summary chart of the three need theories of motivation just

discussed. The chart shows the parallel relationship between the needs in each of

the theories. Maslow refers to higher- lower order needs, whereas Herzberg refers to

motivation and hygiene factors.

4. McGregor’s Participation Theory:

Douglas McGregor formulated two distinct views of human being based on

participation of workers. The first basically negative, labelled Theory X, and the other

basically positive, labled Theory Y.

Theory X is based on the following assumptions:

1. People are by nature indolent. That is, they like to work as little as possible.

2. People lack ambition, dislike responsibility, and prefer to be directed by others.

3. People are inherently self-centred and indifferent to organisational needs and

goals.
4. People are generally gullible and not very sharp and bright.

On the contrary, Theory Y assumes that:

1. People are not by nature passive or resistant to organisational goals.

2. They want to assume responsibility.

3. They want their organisation to succeed.

4. People are capable of directing their own behaviour.

5. They have need for achievement.

What McGregor tried to dramatize through his theory X and Y is to outline the

extremes to draw the fencing within which the organisational man is usually seen to

behave. The fact remains that no organisational man would actually belong either to

theory X or theory Y. In reality, he/she shares the traits of both. What actually

happens is that man swings from one set or properties to the other with changes in

his mood and motives in changing .environment.

5. Urwick’s Theory Z:

Much after the propositions of theories X and Y by McGregor, the three theorists

Urwick, Rangnekar, and Ouchi-propounded the third theory lebeled as Z theory.

The two propositions in Urwicks’s theory are that:

(i) Each individual should know the organisational goals precisely and the amount of

contribution through his efforts towards these goals.

(ii) Each individual should also know that the relation of organisational goals is going

to satisfy his/her needs positively.

In Urwick’s view, the above two make people ready to behave positively to

accomplish both organisational and individual goals.

However, Ouchi’s Theory Z has attracted the lot of attention of management

practitioners as well as researchers. It must be noted that Z does not stand for

anything, is merely the last alphabet in the English Language.

Theory Z is based on the following four postulates:

1. Strong Bond between Organisation and Employees

2. Employee Participation and Involvement

3. No Formal Organisation Structure

4. Human Resource Development

Ouchi’s Theory Z represents the adoption of Japanese management practices

(group decision making, social cohesion, job security, holistic concern for

employees, etc.)by the American companies. In India, Maruti-Suzuki, Hero-Honda,

etc., apply the postulates of theory Z.

6. Argyris’s Theory:

Argyris has developed his motivation theory based on proposition how management

practices affect the individual behaviour and growth in his view, the seven changes

taking place in an individual personality make him/her a mature one. In other words,

personality of individual develops

Argyris views that immaturity exists in individuals mainly because of organisational

setting and management practices such as task specialisation, chain of command,

unity of direction, and span of management. In order to make individuals grow

mature, he proposes gradual shift from the existing pyramidal organisation structure

to humanistic system; from existing management system to the more flexible and

participative management.

He states that such situation will satisfy not only their physiological and safety needs,

but also will motivate them to make ready to make more use of their physiological

and safety needs. But also, will motivate them to make ready to make more use of

their potential in accomplishing organisational goals.

7. Vroom’s Expectancy Theory:

One of the most widely accepted explanations of motivation is offered by Victor

Vroom in his Expectancy Theory” It is a cognitive process theory of motivation. The

theory is founded on the basic notions that people will be motivated to exert a high

level of effort when they believe there are relationships between the effort they put

forth, the performance they achieve, and the outcomes/ rewards they receive.

The relationships between notions of effort, performance, and reward are depicted in

Figure 17.3

Thus, the key constructs in the expectancy theory of motivation are:

1. Valence:

Valence, according to Vroom, means the value or strength one places on a particular

outcome or reward.
2. Expectancy:

It relates efforts to performance.

3. Instrumentality:

By instrumentality, Vroom means, the belief that performance is related to rewards.

Thus, Vroom’s motivation can also be expressed in the form of an equation as

follows: Motivation = Valence x Expectancy x Instrumentality

Being the model multiplicative in nature, all the three variables must have high

positive values to imply motivated performance choice. If any one of the variables

approaches to zero level, the possibility of the so motivated performance also

touches zero level.

However, Vroom’s expectancy theory has its critics. The important ones are:

1. Critics like Porter and Lawler lebeled it as a theory of cognitive hedonism which

proposes that individual cognitively chooses the course of action that leads to the

greatest degree of pleasure or the smallest degree of pain.

2. The assumption that people are rational and calculating makes the theory

idealistic.

3. The expectancy theory does not describe individual and situational differences.

But the valence or value people place on various rewards varies. For example, one

employee prefers salary to benefits, whereas another person prefers to just the

reverse. The valence for the same reward varies from situation to situation.

In spite of all these critics, the greatest point in me expectancy theory is that it

explains why significant segment of workforce exerts low levels of efforts in carrying

out job responsibilities.

8. Porter and Lawler’s Expectancy Theory:

In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy

theory. They posit that motivation does not equal satisfaction or performance. The

model suggested by them encounters some of the simplistic traditional assumptions

made about the positive relationship between satisfaction and performance. They

proposed a multi-variate model to explain the complex relationship that exists

between satisfaction and performance.

What is the main point in Porter and Lawler’s model is that effort or motivation does

not lead directly to performance. It is intact, mediated by abilities and traits and by

role perceptions. Ultimately, performance leads to satisfaction,. The same is

depicted in the following Fig 17.4.

There are three main elements in this model. Let us briefly discuss these one by

one.

Effort:

Effort refers to the amount of energy an employee exerts on a given task. How much

effort an employee will put in a task is determined by two factors-

(i) Value of reward and

(ii) Perception of effort-reward probability.

Performance:

One’s effort leads to his/her performance. Both may be equal or may not be.

However the amount of performance is determined by the amount of labour and the

ability and role perception of the employee. Thus, if an employee possesses less

ability and/or makes wrong role perception, his/her performance may be low in spite

of his putting in great efforts.

Satisfaction:

Performance leads to satisfaction. The level of satisfaction depends upon the

amount of rewards one achieves. If the amount of actual rewards meet or exceed

perceived equitable rewards, the employee will feel satisfied. On the country, if

actual rewards fall short of perceived ones, he/she will be dissatisfied.

Rewards may be of two kinds—intrinsic and extrinsic rewards. Examples of intrinsic

rewards are such as sense of accomplishment and self-actualisation. As regards

extrinsic rewards, these may include working conditions and status. A fair degree of

research support that, the intrinsic rewards are much more likely to produce attitudes

about satisfaction that are related to performance.

There is no denying of the fact that the motivation model proposed by Porter and

Lawler is quite complex than other models of motivation. In fact motivation itself is

not a simple cause-effect relationship rather it is a complex phenomenon Porter and

Lawler have attempted to measure variables such as the values of possible rewards,

the perception of effort-rewards probabilities and role perceptions in deriving

satisfaction.

They recommended that the managers should carefully reassess their reward

system and structure. The effort-performance-reward-satisfaction should be made

integral to the entire system of managing men in organisation.

Similarities between Maslow's Hierarchy of Need Theory and Herzberg's Two
Factor Theory
1. Both the models fail to explain individual differences in motivation.
2. Both the models are content model. They focus on identifying needs that
motivate people to do something.
3. Both the models assume that needs are the driving force that cause a person
to do something.
4. Both deal with the same problem.
5. Both tend to over simplify the motivation process.

MOTIVATION CYCLE:
Motivation cycle is a transition of states within an organism that propels the
organism toward the satisfaction of a particular need, where motivation itself
is considered a hypothesized state. Psychologists use the concept of need to
describe the motivational properties of behavior.

The state of motivation is further comprised of four different states, which

takes place in an organism to drive him towards each action. Each action is
first initiated because of a particular need. The need drives the person into
taking actions. Positive results, caused due to the actions, further acts as
an incentive motivating a person towards the goal. But the individual can
never stop after achieving a certain goal, and this phenomenon continues on
and on. This phenomenon has been termed as Motivational Cycle.

Need
A need is lack or deficit of some necessity. It’s a state of physical deprivation
that causes tension within an organism. The tension caused when the
organism is deprived of basic necessities of life as food, water, and sleep,
causes the internal environment of an organism to be imbalanced. The
imbalance caused by the need arouses the organism to maintain its balance.
For any goal directed behavior, need is the first condition or stimulating factor.
 Drive
Need leads to drive, which is the second step towards achieving goal. Drive
can be defined as the state of tension or arousal produced by need. The drive
can also be considered as the original source of energy that activates an
organism. For instance, when an organism is hungry and/or thirsty, the
organism seeks to reduce this drive by eating and/or drinking.

Drive acts as a strong persistent stimulus to push an organism towards its

goal. It is the state of heightened tension leading to restless activity and
preparatory behavior.

Incentive
The object of the environment that activates, directs, and maintains behavior is
called incentive. It can be anything as long as it has either positive or negative value
in motivating behavior.

The incentive theory rests on the assumption that the behaving organism is
well aware of his actions and the consequences received as a result. The
theory also understands incentives as the motivation, which a person has to
achieve any particular goal object. The motivated behavior is directed towards
incentive and getting closer to the incentive provides satisfaction of the
aroused drive.

For example: behavior like eating food is an incentive that reduces the drive of
the person caused by the need to fulfill his hunger. The reduction of behavior
then cuts off and restores balance in an organism.

According to Hilgard,
The incentive is something in the external environment that satisfies the need
and thus reduces the drive through consummative activity.
Goal
The reduction of tension in the body can be considered as the goal of any
motivated behavior. Let’s go back to the example of a hungry man. A hungry
man eats food, and his body restores to a balanced condition. This then
reduces the tension. This reduction of tension as a result of an energized
activity is called goal. Once the goal has been completed, the organism is
again ready for another goal-motivated behavior.

Goals might be both positive or negative. Positive goals are the ones that an
organism tries to attain, such as sexual companionship, food, victory etc.
negative goals are the ones that an organism tries to escape from or avoid,
such as embarrassing situations, punishments

These four steps continue on and on throughout the life-course of an organism.

Because the needs are never ending, it leads to drive, which then lead to
incentive and the goal.
 For Example: The motivational cycle of the hungry man is over once when he
eats and the goal is satisfied. But, the cycle will restart once the man gets hungry
again. The cycle goes on and on only to end at the demise of an organism, at
which point, the needs permanently stop. Motivational cycle means that behavior
goes on in a sequence. Often times, a single motivated behavior can also fulfill
multiple needs.

9.A leader is someone whom people follow or someone who guides or directs
others. A manager is someone who is responsible for directing and controlling the
work and staff in an organization, or of a department within it.

Characteristics of Leadership:
1. Leadership is a personal quality.

2. It exists only with followers. If there are no followers, there is no leadership?

3. It is the willingness of people to follow that makes person a leader.

4. Leadership is a process of influence. A leader must be able to influence the

behaviour, attitude and beliefs of his subordinates.

5. It exists only for the realization of common goals.

6. It involves readiness to accept complete responsibility in all situations.

7. Leadership is the function of stimulating the followers to strive willingly to attain

organizational objectives.

8. Leadership styles do change under different circumstances.

9. Leadership is neither bossism nor synonymous with; management.

Leadership Styles
Different leadership styles exist in work environments. The culture and goal of an
organization determine which leadership style fits best. Some organizations offer
different leadership styles within an organization, depending on the necessary tasks
to complete and departmental needs.
We find five different leadership styles in the corporate world. They are as follows −
Laissez-Faire
A laissez-faire leader does not directly supervise employees and fails to provide
regular updates to those under his supervision. Highly experienced and trained
employees with minimal requirement of supervision fall under the laissez-faire
leadership style.
But, not all employees possess these features. This leadership style blocks the
production of employees needing supervision. The laissez-faire style implements no
leadership or supervision efforts from managers, which can lead to poor production,
lack of control and increasing costs.
Autocratic
The autocratic leadership style permits managers to make decisions alone without
the input of others. Managers access total authority and impose their will on
employees. No one opposes the decisions of autocratic leaders. Countries like
Cuba and North Korea operate under the autocratic leadership style.
This leadership style benefits those who require direct supervision. Creative
employees who participate in group functions detest this leadership style.
Participative
This is also known as the democratic leadership style. It values the input of team
members and peers, but the responsibility of making the final decision rests with the
participative leader. Participative leadership motivates employee morale because
employees make contributions to the decision-making process. It accounts to a
feeling that their opinions matter.
When an organization needs to make changes within itself, that is internally, the
participative leadership style helps employees accept changes easily as they play a
role in the process. This leadership style meets challenges when companies need
to make a decision in a short period of time.
Transactional
Transactional leadership style is formed by the concept of reward and punishment.
Transactional leaders believe that the employee's performance is completely
dependent on these two factors. When there is an encouragement, the workers put
in their best effort and the bonus is in monetary terms in most of the cases. In case
they fail to achieve the set target they are given a negative appraisal.
Transactional leaders pay more attention to physical and security requirements of
the employees.
Transformational
Transformational leadership has the ability to affect employee's perceptions through
the returns that organization gets in the form of human capital benefits. These
leaders have the ability to reap higher benefits by introducing knowledge
management processes, encouraging interpersonal communication among
employees and creating healthy organizational culture.
It helps in flourishing organizational innovation by creating a participative
environment or culture. It promotes a culture where the employees have autonomy
to speak about their experiences and share knowledge.
It has been seen that transformational leaders are more innovative than
transactional and laisse-faire leaders.
Leader vs manager:
The main difference between the two is that a leader works by example, while a
manager dictates expectations. If a manager goes against the rules, that will tarnish
his position as a manager. If a leader goes against the example he or she is trying
to set, that will be seen as a setback. Following are a few subtle differences
between the two −
 A leader is an innovator and creator whereas a manager is a commander.
 A leader can’t be a manager but the opposite is possible, a manager is more
than a leader.
 A leader does what is right, while the manager makes things right.
 A leader deals with change whereas a manager plans for a change.
 A leader gives direction to do something whereas the manager plans for
everything that is to be done.
 A leader encourages people whereas the manager controls people.
 A leader handles communication, credibility, and empowerment whereas a
manager deals with organizing and staffing.

10. Conflict- “a process in which an effort is purposefully made by a person

or unit to block another that result in frustrating the attainment of others
goals or furthering of his or her interests.”

Types:
Type # 1. Task Conflict:
Task conflict relates to the content and goal of the work. According to Graves, task
conflict arises among members of team and affects the goals and tasks they are
striving to achieve. It can be based on differences in vision, intention, and quality
expectation. It is essential to focus and channel any task conflict so that these
differences become collaborative and lead to improvements in the way and go about
accomplishing current and future task. Converting conflict to friendly competition
might be one way of taking the best from both sides.

Type # 2. Role Conflict:

Conflict surrounding roles and responsibilities are especially common during or
immediately following organisational change, particularly restructurings. People may
be unclear on who is responsible for which decisions and outputs.
For example, after an international strategic business consulting firm restructured its
managerial staff, an individual who formerly managed two key customer segments
was unwilling to relinquish all the responsibility to the new manager. He continued to
question staff and issue orders while his replacement was trying to set a new
direction. With two managers giving input, employees were stuck in the middle,
which created conflict among them as well as between the managers.
To identify the root cause of a role conflict, each party needs to examine his or her
responsibilities as well as the other persons. One or both may need to change their
perception, and then they will need to collaborate to clarify who will handle what.

Type # 3. Process Conflict:

This is related to how the work gets done. This form of conflict centres around, the
process, procedures, steps or methods used to reach goal. One person might like to
plan many steps ahead while others might like to dive in headfirst. These differences
in approaches or processes can lead to communication break downs and ultimately
conflict. Healthy differences in approaches to process will often lead to improved way
of doing job.
Process conflict commonly arises when two departments, teams, or groups interact
on a process. They may view the process differently and disagree on how it should
be accomplished or point fingers rather than communicating effectively when
problems arise.
For example, at a global manufacturer of heavy lifting equipment, three shifts were
involved in the production of a machine, which often suffered from poor quality or low
production rates. No standard process existed to build the machine, and each shift
believed its approach was best. If one shift ended before the product was completed,
the next group would either send the machine through without completing it – which
resulted in poor quality – or take it apart and rebuild it – which slowed production.
To identify the root cause of process conflict, examine the process controls in place
and how employees interact with them. Get teams or individuals to collaborate to
define the process more effectively and establish communication channels to
address problems.
Type # 4. Directional Conflict:
Directional conflict arises when organisations are forced to rethink their strategies
and focus on shorter-term activities, as many did during the economic downturn.
Employees may not know how to prioritise long-term versus short-term needs, or
one department may work tactically while another remains strategic.
For example, a regional insurance brokerage, representing several prominent
insurance providers, was developing a succession plan and selected several
managers to be groomed as next- generation leaders. This action resulted in
directional conflict because the managers were unclear whether to focus on meeting
their short- term goals or on the longer-term succession efforts.
To identify the root cause of directional conflict, individual employees should ask
themselves-What do I believe our direction is or should be? Is that aligned with what
others are saying? What are senior managers saying? Answering these questions
will enable individuals to change their own direction if necessary and help others
change theirs.
Type # 5. External Conflict:
External conflict arises when pressures from customers or other stakeholders impact
internal decisions. Recent economic challenges compelled organisations to adjust
and adapt, for example, by lowering prices while providing enhanced customer
service. Sales or customer service personnel advocating for customers’ needs may
have come into conflict with operations trying to meet internal goals.
For example, a health care software company was pushing to bring a new product to
market. Sales and customer service employees continued to bring customer input to
the programming group, which did its best to incorporate the ideas into the product.
As the requests continued to come in, it extended the development process beyond
the planned release date. When management finally decided to release the product
without further enhancements, additional conflict arose because customers now
complained that their inputs are not incorporated.
To identify the root cause of external conflict, ask if anyone internally has the control
to resolve the problem. It may be possible to create a can- do list, which may answer
questions such as-What can we do to address the external demand? The solution
might involve collaboration among several departments to adjust to the external
pressures more effectively.
Type # 6. Relationship Conflict:
It focuses on interpersonal relationship. They are directly between people and may
be over roles style, resources or even personalities. This conflict can penetrate and
damage all aspect of an organisation. Relationship conflict can quickly demand all
the attention and energy.
Although poor chemistry between individuals can exist, most interpersonal conflict
tends to grow from the other five sources of conflict. For instance, when two
managers attempt to direct the same department or when employees see external
circumstances differently, interpersonal conflict builds.
However, at times, genuine interpersonal conflict may exist. For instance, a national
business services firm hired a new vice-president whom the divisional personnel
disliked because they felt he was not as open and direct as his predecessor. This
created conflict between the leader and the team, which affected performance.
To find the root cause of interpersonal conflict, look for a particular bias or prejudice.
Can negative emotions be overcome? An open, direct conversation is always the
best way to bring issues out in the open and begin working on a resolution.

There may be two approaches for managing the organisational conflict:

(i) Preventive measures and
(ii) Curative measures.

A. Preventive Measures:
Some of the preventive measures which the management can take to manage
the organisational conflicts are:
1. Establishing Common Goals:
The major reason for the development of conflict is the incompatible goals. This is
particularly true in case of conflict among groups and between individuals and
organisation. The basic strategy of reducing the conflict should be to find common
goals upon which groups can agree and to reestablish valid communication between
the groups. The mutual dependence of groups can be brought through the super
ordinate goals because there are the goals which are of high value to the group.

Super ordinate goals are those that take precedence over other goals that may
separate the conflicting parties. Group conflicts can also be reduced through the use
of incentive systems designed to reward the activities that benefit the larger system,
as opposed to those which are primarily in the interest of subunits.

2. Reduction in Interdependence:
The main reason for inter- group conflict is interdependence among them e.g. line
and staff managers. As such, less the interdependence, less will be the amount of
conflict among them. In organisations, such interdependence cannot be altogether
avoided. However, instead of separating the units organizationally, they can be
separated physically. The physical separation is not a permanent measure of
managing conflict.

3. Reduction in Shared Resources:

Another reason of inter group conflict is sharing of the scarce resources by the
groups. The management of conflict suggests reducing the sharing. One technique
for this can be increasing the resources, so that each unit is independent in using
them. But as the resources are scarce, they cannot always be increased. Thus, the
best possible alternative is optimum allocation of the scarce resources

4. Trust and Communication:

The greater the trust among the members of the unit, the more open and honest the
communication will be. Individuals and groups should be encouraged to
communicate openly with each other, so that misunderstandings can be removed
and they are in a position to understand the problems of each other when necessary.

5. Co-Ordination:
After communication, the next step should be proper coordination. Properly
coordinated activities reduce the conflict. Wherever there are problems in
coordination, a specialization office should be established to deal with these
problems.

6. Exchange of Personnel:
Another method of reducing and managing conflict is that personnel of conflicting
groups may be exchanged for a specified period. Exchange of people is very similar
to role reversal. It is aimed at greater understanding between people by forcing each
to present and defend the other’s position.

7. Use of Superior Authority:

If conflict cannot be resolved by two organisational members or by two groups, it
may be referred to a common superior, who will resolve the conflict by giving a
decision. Such a decision may not necessarily bring agreement, but it will usually be
accepted because of the recognized superior authority of high ranking official.

8. Reorganization of Groups:
A manager can prevent the occurrence of many conflicts by reorganisation the
groups. People who have got something in common will be placed in one group.
Because of something in common, these people tend to see things in the same
perspective, to have common interest and objective, to approach problems in much
the same way. The behaviour of such groups is more predictable and it is easy for
the manager to avoid conflicts.

B. Curative Measures or Resolving Behavioural Conflict:

The curative measures include the resolution of conflicts when they take place and
become dysfunctional in the organisation.
12.Stages of Group Formation
1. Forming stage of group development
In the preliminary stage of group formation, the building of the group happens. The
individual’s conduct is influenced by a desire to be accepted by the other
participants, and prevent dispute or conflict. Serious problems and emotions are
avoided, and folks focus on being busy with programs, for instance group
organization, who does what, when to meet, etc.
However participants additionally collect information – about each other, and about
the scope of the task and the ways to approach it. It is a comfortable stage to be in,
but the prevention of disagreement and threat implies that very little actually gets
done. The group meets and discovers the opportunities and challenges, and then
agrees on goals and begins to deal with the tasks.

2. Storming stage of group development

It is a time of testing. Group members test the leader’s policies and assumptions as
they make an effort to figure out how they fit into the power structure. A Sub group
takes shape, and it is not easy to identify rebellion. A number of groups delay in this
stage. Administrators of the group in this stage might be more accessible, but may
remain directive in their assistance of decision-making and professional conduct.
The group members may as a result sort out their issues and individuals will be able
to participate together more comfortably.
3. Norming stage of group development
Group members set up implicit or explicit guidelines about how exactly they’ll attain
their aim. They deal with the types of interaction which will or will not benefit the job.
Indications include: Questioning performance, Reviewing/clarify goals,
Changing/confirming functions, Opening risky issues, Assertiveness, Listening,
Testing new ground, Identifying weaknesses and strengths.

4. Performing stage of group development

It’s possible for a few groups to achieve the performing phase. These types of high-
performing groups have the ability to function as a unit because they discover
methods for getting the task completed smoothly and successfully without
unacceptable clash or the need for outside supervision. By now, they’re determined
and knowledgeable. The group members are now competent, independent and
equipped to handle the decision-making process without supervision.
Dissent is predicted and permitted so long as it’s channeled through means
acceptable to the group.
5. Adjourning stage of group development
Quite a few groups will arrive at this stage at some point. It involves the termination
of task behaviors and disengagement from relationships. A planned conclusion
generally consists of recognition for participation & achievement and an opportunity
for participants to say goodbye.

Group dynamics refers to the attitudinal and behavioural characteristics of a

group. Group dynamics concerns organizational success because it consists of
various groups and a lot depends on how groups form, how they configuration and
process, and most importantly how they function.

11. Stress is defined as a state of mental and emotional pressure or strain,

caused by challenging or unfavourable circumstances. It is an outside
force that rules an individual’s feelings and behaviour

Stressors are events or contexts that cause a stress reaction by elevating levels of
adrenaline and forcing a physical or mental response.

14.Learning Definition
Learning is any relatively permanent change in behaviour that occurs as a result of
experience.
Characteristics of Learning
Characteristics of learning are:

Learning is Purposeful
Each student sees a learning situation from a different viewpoint. Each student is a
unique individual whose past experiences affect readiness to learn and
understanding of the requirements involved.

Learning is a Result of Experience

Since learning is an individual process, the instructor cannot do it for the student.
The student can learn only from personal experiences; therefore, learning and
knowledge cannot exist apart from a person.

Learning is Multifaceted
Learning is multifaceted in still another way. While learning the subject at hand,
students may be learning other things as well. They may be developing attitudes
about aviation-good or bad-depending on what they experience.

Learning is an Active Process

Students do not soak up knowledge like a sponge absorbs water. The instructor
cannot assume that students remember something just because they were in the
classroom, shop, or airplane when the instructor presented the material.

 Managerial grid:

Developed by R. R. Blake and J. S. Mouton, the Managerial Grid Model helps

Managers to analyze their leadership styles through a technique known as grid
training.

Also, Managers can identify how they concerning their concern for production and
people with the Managerial Grid Model.
The two dimensions of leadership, viz. concern for people on ‘vertical’ axis and
concern for production on the ‘horizontal’ axis have been demonstrated by R. R.
Blake and J. S. Mouton in the form of Managerial Grid Model.

The five resulting leadership styles are as follows:

Managerial Grid Model is based on two behavioral dimensions:

1. Concern for people: This is the degree to which a leader considers the
needs of team members, their interests, and areas of personal development
when deciding how best to accomplish a task.
2. Concern for production: This is the degree to which a leader emphasizes
concrete objectives, organizational efficiency, and high productivity when
deciding how best to accomplish a task.