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Human Behavior in Organization

401 [BSCS IT IV-I]

ITC

People tend to be very effective at managing relationships when they can understand and control their own emotions and can empathize with the feelings of others. It is useful to begin with: definition, goals, forces and major characteristics of organizational behaviour. In short the Nature and Scope.

Organizational Behaviour - is the systematic study and careful application of


knowledge about how people as individuals and as groups act within organizations. It strives to identify ways in which people can act more effectively. It is a scientific discipline in which a large number of research studies and conceptual developments are constantly adding to its knowledge base. It is also an applied science, in that information about effective practices in one organization is being extended to many others. Organizational Behaviour (OB) provides a useful set of tools at many levels of analysis. Helps managers look at the behaviour of the individuals within an organization. Aids their understanding of the complexities involved in interpersonal relationships.

The 4 Goals of OB: Describe, understand, predict and control the human behaviour at work.

PROF. KHATALYN E. MATA

Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

DESCRIBE: Systematically, how people behave under a variety of conditions. Achieving this goal allows managers to communicate about human behaviour at work using a common language. UNDERSTAND: Why people behave as they do. Managers would be highly frustrated if they could only talk about behaviours of their employees, but not understand the reasons behind those actions. Therefore, inquisitive managers learn to probe for underlying explanations. PREDICT: Future employee behaviour. Ideally, Managers would have the capacity to predict which employees might be dedicated and productive or which ones might be absent, tardy or disruptive on a certain day (so that managers could take preventive actions.) CONTROL: At least partially, and develop some human activity at work. Since managers are held responsible for performance outcomes, they are vitally interested in being able to make an impact on the behaviour, skill development, team effort, and productivity. Managers need to be able to improve results through the actions they and their employees take, and organizational behaviour can aid them in their pursuit of this goal.
People Individuals Groups

Environment Government Competition Societal pressures

Structure Jobs Relationships

Organizational Behaviour

The 4 key forces affecting Organizational Behaviour

PROF. KHATALYN E. MATA Technology M achinery Computer hardware and software

Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

PEOPLE: People make up the internal social system of the organization. That system consists of individuals and groups, and large groups as well as small ones. There are unofficial, informal groups and more official, formal ones. Groups are dynamic. They form, change and disband. People are living, thinking, feeling beings who work in the organization to achieve their objectives. We must remember that organizations exist to serve people, rather than people to serve organizations. STRUCTURE: Defines the formal relationship and use of people on organizations. Different jobs are required to accomplish all of an organizations activities. There are managers and employees, accountants and assemblers. These people have to be related in some structural way so that their work can be effectively coordinated. These relationships create complex problems of cooperation, negotiation, and decision making. TECHNOLOGY: Technology provides the resources with which people work and affects the tasks that they perform. They cannot accomplish much with their bare hands, so PROF. KHATALYN E. MATA

Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

they construct buildings, design machines, create work processes, and assemble resources. The technology used has a significant influence on working relationships ENVIRONMENT: All organizations operate within an internal and an external environment. A single organization does not exist alone. It is part of a larger system that contains many other elements, such as government, the family, and other organizations. Individual organizations, such as a factory or a school, cannot escape being influenced by this external environment. It influences the attitudes of people, affects working conditions, and provides competition for resources and power.

Fundamental Concepts of Organizational Behaviour

Nature of People Individual Perception A whole Motivated Desire for Value of the Difference

Nature of Organizations

person behaviour involvement person

Social Systems Mutual interest Ethics

PROF. KHATALYN E. MATA

Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

INDIVIDUAL DIFFERENCE: Individuals are different in their physical and

mental traits. They are different not only in the physical appearance such as sex, age, height, weight, complexion and so on but also different in their psychological trait such as intelligence, attitude, motivation and perception. This belief that each person is different from all others is typically called the 'Law of Individual Differences'. Individual differences mean that the management has to treat them differently to get the best out of them.

PERCEPTION: People look at the world differently even when presented

with the same object; two people may view it in two different ways. Their view of their objective environment is filtered by perception, which is a unique way in which each person sees, organizes and interpret things. Having unique views is another way in which people act like human beings rather than rational machines.

A WHOLE PERSON: Though the organization may feel that they are employing only the individual's skill or intelligence, in fact, they employ the 'whole person'. This means that individual does not have only the skill and intelligence but he has a personal life, needs and desires as well. In other words, his personal life cannot be separated from his work life since people function as total human beings. When management practices organizational behaviour, it is not only trying to develop a better employee but it also wants to develop a 'better person' in terms of all round growth and development. The benefit will extend beyond the firm into the larger society in which each employee lives.

MOTIVATED BEHAVIOR: It is the urge of the individual to satisfy a particular need that motivates him to do an act. The motivation could be positive or

PROF. KHATALYN E. MATA

Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

negative. Motivation is essential for the proper functioning of organizations. The organization can show to its employees how certain actions will increase their need fulfilment.

DESIRE FOR INVOLVEMENT: Many employees today are actively seeking opportunities at work to become involved in relevant decisions, thereby contributing their talents and ideas to the organizations success. They hunger for the chance to share what they know and to learn from the experience. Consequently, organizations need to provide opportunities for meaningful involvement. This can be achieved through employee empowerment a practice that will result in mutual benefit for both parties.

VALUE OF A PERSON: It is more an ethical philosophy. It stresses that people are to be treated with respect and dignity. Every job, however simple, entitles the people who do it to proper respect and recognition of their unique aspirations and abilities. Since organizational behaviour involves people, ethical philosophy is involved in one way or the other.

SOCIAL SYSTEMS: The existence of a social system implies that the organizational environment is one of the dynamic change rather than static set of relations as pictured on an organization chart. All parts of the system are interdependent, and each part is subject to influence by any other part. Everything is related to everything else.

MUTUAL

INTEREST:

Organizations

need

people,

and

people

need

organizations. Organizations have a human purpose. They are formed and maintained on the basis of some mutually interest among their participants. Managers need employees to help them reach organizational objectives; people PROF. KHATALYN E. MATA

Human Behavior in Organization


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need organizations to help reach individual objectives. If mutuality is lacking, trying to assemble a group and develop cooperation makes no sense, because there is no common base in which to build.

ETHICS: In order to attract and retain valuable employees in an era in which good workers are constantly recruited away, organizations must treat their employees in an ethical fashion. To ensure higher standard of ethical performance by managers and employees alike. Companies have established codes of ethics, publicized statements of ethical values, provided ethics training, rewarded employees for notable ethical behaviour, publicized positive role models and set up internal procedures to handle misconduct.

Some Behavioural Science Assumptions

Behavioural Science

PROF. KHATALYN E. MATA

Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

A scientific discipline, such as sociology, anthropology, or psychology, in which the actions and reactions of humans and animals are studied through observational and experimental methods

Scientific study of human and animal behaviour.

Douglas Mc Gregor He developed two attitude profiles or assumptions concerning the basic nature of people. These two divergent attitudes were termed THEORY X and THEORY Y.

Theory X The typical person dislikes work and will it ,if possible. The typical person lacks responsibility, has a little ambition and seeks security above all. Most people must be coerced controlled, threatened with punishment to get them to work.

Theory Y Work is as natural as play or rest

People will exercise self direction and self control in the service of objectives to which they are committed. People have potential. Under proper conditions they learn to accept and seek responsibility. They have imagination, ingenuity and creativity that can be applied to work.

Herzbergs Two Factor Theory Developed by Frederick Herzberg, According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction.

PROF. KHATALYN E. MATA

Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

1. Hygiene factors - Hygiene factors are those job factors which are essential for existence of motivation at workplace. Hygiene factors are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These factors describe the job environment / scenario. The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include: Pay Company Policies and administrative policies Fringe benefits Physical Working conditions Status Interpersonal relations Job Security

2. Motivational factors - The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for a superior performance. These factors are called satisfiers. These are factors involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit. Motivational factors include: Recognition Sense of achievement Growth and promotional opportunities Responsibility Meaningfulness of the work

David C McClelland Theory Classify people in their dominant need for achievement, power, and affiliation. People who are high in need achievement are highly motivated to strive for the satisfaction that is derived from accomplishing some challenging tasks. Tasks for PROF. KHATALYN E. MATA

Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

which there is a reasonable chance for success and avoid those that are either too easy or too difficult. He popularized the term Achievement Motivation which is to describe an individual's drive to overcome challenges for advancement.

Basic needs to drive people: 1. Need for achievement - a strong correlation between high need for achievement and level of job performance and success. 2. Need for power - a drive to influence people to conform with certain situations. 3. Need for affiliation - an individual has a need to develop warm, friendly, cordial and personal relationship. 4. Need for competence - an individual has a drive to strive for quality work. Skinner Operant Theory In this theory, rewards or any positive reinforces of a certain behaviour are found to be more powerful than the negative and neutral reinforces, even if both sets of reinforces may be used.

Positive reinforcement in modifying motivational behaviours of workers: 1. Do not reward equally. 2. Failure to reinforce may encourage poor subsequent performance. 3. Inform workers about what they can do to get reinforcement. 4. Tell workers when and what they are doing wrong. PROF. KHATALYN E. MATA

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5. Do not punish a subordinate in front of other workers. 6. Be fair.

Basic Concept of Organizational System and Human Behaviour


1.

Individual differences a person is a distinct individual, he is unique and different from others. Every individual experiences after birth tend to make people even more different from one another.

PROF. KHATALYN E. MATA

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Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

2.

Perception is the act of faculty apprehending by means of the sense or of the mind. It is the unique way in which an individual perceives, organizes and interprets with his eyes things around him.

3.

Whole person when a person joins an organization, he is hired not only because of his brains but, as a whole, person possessed with certain characteristics. Different human traits and other characteristics can be studied separately; but in the final analysis; they are part of one human system, making up a whole person with different skills, knowledge and social and cultural backgrounds.

4.

Motivated person this may be as a result of a normal behavior that has certain causes and these may relate to an individuals need.

People are motivated by want. John Maxwel: Self-motivation is the power that raises a man to any level he seeks. Successful people are self-starters; they are internally motivated and hardworking even if no one is supervising them.
5.

Desire for involvement every person wishes to feel good himself. This personal human desire is reflected in his drive for self-efficacy.

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Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

This is the belief that everybody has the necessary capabilities to perform a certain task, fulfilled role responsibilities and expectations, make meaningful and rewarding contributions to the organization, and meet challenging situations successfully.
6.

Values of persons People want to be given preferential value for their skills and abilities with opportunities for their development. People are the most difficult to control in any type of organization, therefore they deserve to be treated with extra care because they have feelings and emotions.

Organizations and Social System Organizations are social systems for they are organized on the basis of mutual interest. Ex: Employer and worker relationship. Social system

A complex set of human relationships interacting in many and different ways. His behaviour is influenced by the group he belongs to and by his personal drives and aspirations.

Mutual interest Organization needs people and people also need organization. PROF. KHATALYN E. MATA

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Human Behavior in Organization


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Mutual interest provides super ordinate goals for employees, for the organization and for society.

Ethics It is a system of moral principles. The rules of conduct recognized in respect to a particular class of human actions or a particular group. Ex. Many companies and corporations have established codes of ethics and also publicized statements of ethical values When organizational goals and actions conform with ethical standard, organizational and social objectives are met.

Concepts and Principles of Organizational Behaviour

In every field of social science, or even physical science, has a philosophical foundation of basic concepts that guide its development. There are some certain philosophical concepts in organizational behaviour also. The concepts are: Individual differences Every individual in the world is different from others. This idea is supported by science. Each person is different from all others, probably in million ways, just as each persons DNA profile is different.

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Human Behavior in Organization


401 [BSCS IT IV-I]

ITC

The idea of individual difference comes originally from psychology. From the day of birth, each person is unique, and individual experiences after birth tend to make people even more different.

Perception Peoples perceptions are also differed when they see an object. Two people can differently present a same object. And this is occurring for their experiences. A person always organizes and interprets what he sees according to his lifetime of experience.

Employees also see work differently for differ in their personalities, needs, demographics factors, past experiences and social surrounding.

A whole person

An employee's personal life is not detached from his working life. As an example, A women who attend the office at 8:30 AM is always anxious for her children's school time (if her children able to attend the school or not). As a result, the impacted falls on her concentration that means her working life. For this reason, we cannot separate it. So manager should treat an employee as a whole person.

Motivated behaviour

An employee has so many needs inside him. So, they want to fulfill those needs. That's why; they had to perform well in the organization. Some motivations are needed to enrich the quality of work. A path toward increased need of fulfillment is the better way of enriches PROF. KHATALYN E. MATA the quality of work.

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Human Behavior in Organization


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Desire for involvement Every employee is actively seeking opportunities at work to involve in decision-making problems. They hunger for the chance to share what they know and to learn from the experience. So, organization should provide them a chance to express their opinions, ideas and suggestion for decision-making problem. Value of the person An employee wants to be treated separately from other factor of production (land, capital, labour). They refuse to accept the old idea that they are simply treated as economic tools because they are best creation of almighty Allah. For this reason, they want to be treated with carrying respect, dignity and other things from their employers and society.

The nature of organization

There are two assumptions as to nature of organization.

Social Systems Organizations are social systems and governed by social and psychological laws. They have social roles and status. Their behaviour influenced by their group's individual drives. Organization environment in a social system is dynamic. All parts of the system are interdependent.

Mutual interest In order to develop the organization behaviour mutually of interest organizations and people is necessary. Organizations need people and people in tern need organizations. PROF. KHATALYN E. MATA

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Human Behavior in Organization


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People satisfy their needs through organization and organization accomplish their goal through people.

Ethics In order to attract and retain valuable employees in an era in which good workers are constantly required away, ethical treatment is necessary. To succeed, organization must treat employees in an ethical fashion. Every Company is required to establish codes of ethics, publicized statements of ethical values, provided ethics training, rewarded employees for notable ethical behaviour, publicized positive role models, and set up internal procedures to handle misconduct.

Organizational Behavior: Terminology and Concepts

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Human Behavior in Organization


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Maslow's Theory

Schermerhorn et al (2005), defines organizational behaviour (OB) as "the study of human behaviour in organizations" (p. 3). OB uses scientific methods to test hypotheses. OB is also a multi-disciplinary study, taking knowledge from social and behavioural sciences and applying it to real-world situations. PROF. KHATALYN E. MATA

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Why is organizational behaviour important to study? If people are an organization most important asset then understanding how humans behave in organizations will improve productivity. Understanding OB allows better worker relations, more realistic expectations and improves job satisfaction. Organizational Culture An organizations culture stems from "the shared beliefs and values that influence the behaviour of organizational members" (Schermerhorn, Jr et al., 2005, 9). Every organization has a different culture. For example, at one small brewery, the corporate culture expects employees in any position to learn constantly about the industry and then teach clients. The culture also encourages direct communications with any other employee no matter what level on the org chart they are. Other company's cultures may expect employees to only do their job and not give input at all. Diversity Organizations which do not have a culture of encouraging diversity are at a decided disadvantage. In the modern world of global business, not hiring the best person for the job solely because of gender, race, ethnicity, religion or age is not only foolish, but probably illegal. Some organizations are even going to the extreme of trying to eliminate all subcultures and become truly multicultural. "The multicultural organization is a firm that values diversity but systematically works to block the transfer of societally based subcultures into the fabric of the organization" (Schermerhorn, Jr et al., 2005, p. 440). Communication

Two types of organizational communication exist, formal and informal. Organizations of all sizes make use of both, whether directly or indirectly. Formal channels of communication generally follow the chain of command or org chart and are top down. PROF. KHATALYN E. MATA

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Informal channels on the other hand tend to be more open and spontaneous. Scuttlebutt or gossip is also considered forms informal organizational communication. Many small companies rely more on informal communications channels. Small organizations by and large adhere less to formal command structures and all employees are generally more active in feedback and decision making.

Organizational Effectiveness and Efficiency

Organizational effectiveness measures how well an organization is in sync. Even with the best management, superior strategy and flawless execution an organization can be less successful than it could be. Organizations who understand employees as partners stand a much better chance of achieving high organizational effectiveness and efficiency. "Organizational effectiveness is about each individual doing everything they know how to do and doing it well" (NIH, 2004). Smaller organizations should exhibit more organizational efficiency due to less bureaucratic management. This is not always the case as smaller organizations oftentimes have less clear strategic goals and incomplete systems. Smaller organizations tend to not have as many mature systems in place for employees. This creates inefficiency as several, and oftentimes conflicting, methods are created by employees and not management. Organizational Learning

In todays fast paced, global business environment, organizations need to adapt quickly to threats and opportunities. How an organization learns directly affects the speed and efficiency of an organization to handle opportunities and threats. Richard Karash supplies this definition, "A "Learning Organization" is one in which people at all levels, PROF. KHATALYN E. MATA

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individually and collectively, are continually increasing their capacity to produce results they really care about" (Karash, 2002). At many small organizations, employees are constantly learning and experimenting. New products are created and new markets serviced based on employee suggestions. At one small brewery, gluten-free beer, was conceived by a team who were researching new product ideas. The beer was then created by the Brewmaster. After a one year test phase, in which many iterations of the beer was brewed and sampled, a final product was introduced. All employees of the company contributed and in the process learned about the beer brewing process, helping them both professionally and personally. Conclusion Whether an organization is for profit or not, motivating and utilizing the talent an organization has is vital in the business world today. Understanding organizational behaviour is a major factor for increased opportunity and success in the business world. Gaining an awareness of an organizations culture is necessary for continued diverse growth. In order to attract the best talent to an organization, a culture of diversity and open communication is needed. Once an organization has the best talent it can find, the organization can improve efficiency and have more wide-spread viewpoints to learn from. Care must be taken though, to make sure the organizational culture is compatible with the strategic goals of an organization.

Expectancy Theory
Equates motivation with the product of valence and expectancy o Valence, i.e., how much an individual desires something. o Expectancy, i.e., the probability that a particular action will lead to the desired thing. The assumption of these models is that desire as a strong feeling to start any PROF. KHATALYN E. MATA

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effort that impels an individual to the attainment or possession of something. The expectancy model implies that, through experience, people learn the kind of rewards (outcomes) they value more highly than others. * Most familiar model under this theory is that of Victor H. Vroom Level of Motivation = EP x PO x Valence Where EP = Effort Performance Expectancy e.g., the manager is inclined to believe that increased marketing effort is likely to yield increases in company sales. PO = Performance Outcome Expectancy e.g., the manager is inclined to believe that increased sales may result in his promotion. Valence = Value or preference placed on an outcome e.g., the manager is inclined to place great value on promotion; hence, assign a positive value on it. Expectancy refers to the degree of an individuals anticipatory belief that his specific action will certainly end in a particular result or outcome.

The expectancy model has some limitations, despite its general appeal. It needs further testing to establish a broad base of evidence for support. The intrinsic and extrinsic rewards need to be considered. Intrinsic Motivation - Refers to motivation that comes from inside an individual rather than from any external or outside rewards, such as money or hubby. Extrinsic Motivation PROF. KHATALYN E. MATA

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Human Behavior in Organization


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- Refers to motivation that comes from outside an individual. Ex. an extrinsically motivated person who dislikes math may work hard on a math equation because the reward would be a good grade.

Advantages of the Expectancy Model - Help manager think about mental processes through which motivation as a human behavior occurs. - Workers are thinking individuals whose beliefs, orientation, perceptions, and probability estimates virtually influence their behavior. - Encourages managers to design a climate conducive that will stimulate appropriate worker behavior.

Weaknesses of the Expectancy Model - It need further testing to establish a broad base of evidence for support. - The intrinsic and extrinsic rewards need to consider. - Reliable measures of valence, expectancy and instrumentality need to be developed. -The expectancy model also needs to be more complete while still remaining practical enough for manager use. -Some manager dont have such time or resources to use complex motivational system on the job PROF. KHATALYN E. MATA

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Human Behavior in Organization


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Traditional Theory of Motivation Evolved from the work of Frederick W. Taylor He emphasized using science, creating groups harmony and cooperation, achieving maximum output and developing workers. He designed a system whereby a worker was compensated according to the individuals production. The traditional theory of motivation is based on the assumption that money is the primary motivation of increasing the productivity level of performance of workers that if the reward is great enough, workers will naturally produce more.

Content Theory Focuses on the content or nature of items that motivate an individual. It relates to the individuals inner self and how that individuals internal state of needs determine behavior. One major difficulty with this model of motivation is that the needs of people are not subject to observation by managers or to accurate measurement for monitoring purposes.

Carrot & Stick Theory PROF. KHATALYN E. MATA

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Reward and punishment are still considered strong motivators. Example: 1. Carrot - is money in the form of pay or bonuses. 2. Stick - is in the form of fear. Fear of loss of job, loss of income, reduction of bonus, demotion and some other penalty.

REASONS WHY YOU SHOULD STUDY HUMAN BEHAVIOR IN ORGANIZATION

Human Behaviour

Human behaviour is the result of attempts to satisfy certain needs. These needs may be simple to understand and easy to identify, such as the need for food and water. They also may be complex, such as the need for respect and acceptance. Why do people act the way they do? Why do some people have an easy time, while others have a hard time adjusting to shipboard life? Why, with an upcoming extended

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deployment, do some crew members look forward to visiting foreign ports, while others prefer to stay with the familiar homeport? By observing human behaviour, you can gain the knowledge you need to better understand yourself and other people. You can learn why people act and react in certain ways. You can learn how to identify the various types of behaviour and needs of people. You also can learn how to influence the behaviour of people so that they can see how meeting the needs of the command will satisfy their own needs.

Human Behaviours that can affect an organization

CONSCIENTIOUSNESS The extent to which individuals are hardworking, organized, dependable, and persevering (high conscientiousness) versus lazy, disorganized, and unreliable (low conscientiousness)

EXTRAVERSION INTRAVERSION The degree to which individuals are gregarious, assertive, and sociable (extraverts) versus being reserved, timid, and quiet (introverts).

AGREEABLENESS

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The extent to which individuals are cooperative and warm (highly agreeable) versus cold and belligerent (highly disagreeable)

OPENNESS TO EXPERIENCE The extent to which individuals are creative, curious, and cultured (open to experience) versus practical and with narrow interests (close to experience)

AFFECTIVITY
o

Positive Affectivity the tendency to experience positive moods and feelings in a wide range of settings and under many different conditions

Negative Affectivity the tendency to experience negative moods and feelings in a wide range of settings and under many different conditions

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