Course Content
 100 Marks – 60 marks written exam and 40 marks internal
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assessment.
Introduction to OB
Personality
Perception Attitude and Values
Motivation Concepts
Group Behaviour and Group Dynamics
Organisational Design
Leadership
Organisational Development
Reference Books
 Understanding Organisational Behaviour – Udai
Pareekh
 Organisational Behaviour - Stephen P. Robbins
 Organisational Behaviour – Fred Luthans
 Organizational Behaviour- Newstrom
 Organizational Behaviour- Uma Sekaran
Course Content
 100 Marks – 60 marks written exam and 40 marks internal








assessment.
Introduction to OB
Personality
Perception Attitude and Values
Motivation Concepts
Group Behaviour and Group Dynamics
Organisational Design
Leadership
Organisational Development
Introduction to OB – Learning Objectives
 Define Organisational Behaviour
 Describe what Managers do
 Explain the value of the systematic study of OB
 List the major challenges and opportunities for the
managers to use OB concepts
 Identify the contributors made by major behavioural
science discipline to OB
 Describe why mangers require a knowledge of
OB
What Managers DO???
 Planning
 Organising
 Leading
 Controlling
 MINTZBER’S MANGERIAL ROLES
Activity 1
Write down 10 roles which makes
manager effective and successful???
Time – 5 Min
Organisational Behaviour
 Organisational Behaviour is a field of study that investigates
the impact that individuals, groups, and structure have on
behaviour within organisations for the purpose of applying
such knowledge towards improving an organisation’s
effectiveness.
 OB is concerned with the study of what people do in an
organisation and how that behaviour affects the
performance of the organisation.
 It emphasises behaviour as related to concerns such as jobs, ,
work, absenteeism, employment turnover, productivity,
human performance and management.
Activity - 2
Write two different incidents when you
predicted someone’s behaviour and your
prediction was correct and when your
prediction was wrong.
Time – 5 Min
Few Questions to Ponder???
 How many of have attempted to interpret what you see?
 How many of you predict behaviour / actions of others?
 How many times it was correct and how many times it
was wrong?
 How well did you know those people whose behaviour
you predicted correctly?
 How well did you know those people whose behaviour
you predicted wrongly?
 How many times you felt that behaviour displayed by
others is irrational?
Replacing Intuition with Systematic Study
 You watch what others do and try to explain to yourself
why they have engaged in their behaviour.
 Unfortunately our casual or commonsense approach to
reading others can often lead to erroneous predictions.
 You can improve your ability by replacing your
intuitive opinions with a more systematic approach.
 Behaviour generally is predictable if we know how the
person perceived the situation and what is important o
him or her
Replacing Intuition with Systematic Study
 There are differences between individuals however
there are certain fundamental consistencies underlying
the behaviour of all individuals that can be identified
 These fundamental consistencies are very important
because they allow predictability.
 Examples
 Behaviour is generally predictable and the systematic
study of behaviour is a means to making reasonably
accurate predictions.
Bases of OB
 Psychology: The science or study of individual human
behaviour
 Sociology: The study of group human behaviour
 Social Psychology: Studies influences of people on
one another
 Anthropology:Study of the human race, and culture
 Political Science:Behaviour of individuals in political
environment
Bases of OB
Challenges and Opportunities for OB
 Responding to globalisation
 Managing workforce diversity
 Improving quality and productivity
 Responding to skilled labour shortage
 Improving customer service
 Improving people skills
 Empowering people
 Coping with ‘Temporariness’
 Stimulating Innovation and Change
 Helping employees balance work/life conflicts
 Improving ethical behaviour
OB Model
Organisation
System Level
Group Level
Individual Level
OB Model – Individual Level
 Values
 Attitude
 Personality Types and Emotions
 Perception and Individual Decision Making
 Motivation
OB Model – Group Level
 Foundation of Group behaviour
 Understanding work teams
 Communication
 Power and Politics
 Leadership
 Conflict and Negotiation
OB Model – Organisation System Level
 Organisation Structure
 Organisation Design
 Organisation Development
Activity - 3
Case Study
Course Content
 100 Marks – 60 marks written exam and 40 marks internal






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assessment.
Introduction to OB
Values and Attitude
Personality
Perception
Motivation Concepts
Group Behaviour and Group Dynamics
Organisational Design
Leadership
Organisational Development
Value – Corporate Value
The Operating philosophies or principles that
guide an organisation’s internal conduct as
well as its relationship with its customers,
partners, and shareholders.
Attitude
 Attitudes are evaluative statements – either favorable or
unfavorable – concerning objects, people, or situation.
 Attitudes reflect how one feels about something.
 Components of Attitude
 Cognitive Component - Belief
 Affective Component – Emotion or feeling
 Behavioural Component
 In organisation, Attitudes are important because they
affect Job behaviour
Types Of Attitude
 Job Satisfaction
 Job Involvement
 Organisational Commitment
Personality
 Dynamic concept describing growth and
development of a person’s whole psychological
system .
 “Personality is the sum total of ways in which an
individual REACTS and INTERACTS with others.”
What Determines The Personality?
Heredity Environment Situation
Myers-Briggs Type Indicator
Type of Social
Interaction
Extrovert (E)
Preference for
Gathering Data
Sensing (S)
Preference for
Decision Making
Style of
Decision Making
Introvert (I)
Intuitive (N)
Feeling (F)
Thinking (T)
Perceptive (P)
Judgmental (J)
Myers-Briggs Type Indicator
Extroversion
Introversion
Interest Orientation
E
Talkative,
Shy,
Sociable,
Reserved,
Friendly,
Quite,
Outspoken
I
Myers-Briggs Type Indicator
Sensing
iNtuition
Information
S
Organised,
Focus Detail
Require more
information
Prefer to
interpret from
less information,
Able to take
foresee
N
Myers-Briggs Type Indicator
Feeling
Thinking
Decision
T
Reliability of
logical order –
cause and
effect,
Priorities based
on personal
importance and
values,
Logic and
consistency
First look at the
people and
special
circumstances
F
Myers-Briggs Type Indicator
Judgment
Perception
Environment Orientation
J
Prefer to get
things
decided
systematic
planning
Less Flexible
Spontaneity
Curious
Stay open to
new
information,
Flexible
P
Conscientiousness
Extroversion
Agreeableness
Emotional
stability
Openness to
Experience
The Big Five Personality Dimensions
 Extroversion: Outgoing, talkative, sociable, assertive
 Agreeableness: Trusting, good natured, cooperative, soft
hearted
 Conscientiousness: Dependable, responsible, achievement
oriented, persistent
 Emotional stability: Relaxed, secure, unworried
 Openness to experience: Intellectual, imaginative,
curious, broad minded
Major Personality Attributes Influencing OB
Locus
of Control
Machiavellian
Personality
Risk
Propensity
Self-Esteem
Other Key
Personality
Attributes
Self
Monitoring
Type A and Type B
Personality
Locus of Control
Internal locus of control: belief that one controls
key events and consequences in one’s life.
 External locus of control: One’s life outcomes
attributed to environmental factors such
as luck or fate.
As per 11th Edition
JOB SUITABILITY
 INTERNALS
 EXTERNALS
 Professional jobs
 Structured jobs
 Managerial jobs
 Routine jobs
As per 11th Edition
Machiavellianism
Characteristics:
• Pragmatic
• Maintains emotional distance
• Believes that ends can justify the means
• Manipulate more
• Win more
• Persuaded less
• Persuade others more
As 11th per Edition
Job Suitability
 For High Machs
 Job requiring bargaining skills
 Or that offer substantial rewards for winning
Self Esteem





1.
2.
The degree to which a person likes or dislikes himself
They believe that they possess the ability they need to
succeed at work
And more likely to choose unconventional jobs than
people with low self esteem
It is directly related to expectations for success
Two types
High Self Esteem
Low self Esteem
High Self Esteem
 They believe that they possess the ability they need to
succeed at work
 And more likely to choose unconventional jobs than
people with low self esteem
 They will not be susceptible to the external influences
 They are more satisfied with their job
High Self Monitoring
 Capable of presenting striking contradictions
between their public persona & private self
 Capable of putting different “faces” for different
audiences
A & B Types of Personality
• Type ‘A’
– Suffer high level of
stress
– Quantity over quality
– Time
pressure/deadlines
– Rarely creative
– Poor decision makers
– Behavior is easier to
predict
• Type ‘B’
– Difficult to predict
behavior
– Good decision makers
– Quality of work
– No compromise on
health
– Wiser than hasty
– Creative / innovative
solutions to same
problem
Perception
and
Individual Decision Making
TWELFTH EDITION
What Is Perception, and Why Is It
Important?
Perception
A process by which
individuals organize and
interpret their sensory
impressions in order to
give meaning to their
environment.
• People’s behavior is
based on their
perception of what
reality is, not on
reality itself.
• The world as it is
perceived is the world
that is behaviorally
important.
Person Perception: Making
Judgments About Others
Attribution Theory
When individuals observe
behavior, they attempt to
determine whether it is
internally or externally
caused.
Distinctiveness: shows different behaviors in different
situations.
Consensus: response is the same as others to same situation.
Consistency: responds in the same way over time.
Attribution Theory
Errors and Biases in Attributions
Fundamental Attribution Error
The tendency to underestimate the
influence of external factors and
overestimate the influence of
internal factors when making
judgments about the behavior of
others.
Errors and Biases in Attributions
(cont’d)
Self-Serving Bias
The tendency for individuals to
attribute their own successes to
internal factors while putting
the blame for failures on
external factors.
Frequently Used Shortcuts in
Judging Others
Selective Perception
People selectively
interpret what they see
on the basis of their
interests, background,
experience, and
attitudes.
Frequently Used Shortcuts in
Judging Others
Halo Effect
Drawing a general impression
about an individual on the
basis of a single characteristic
Contrast Effects
Evaluation of a person’s characteristics that are
affected by comparisons with other people
recently encountered who rank higher or lower
on the same characteristics.
Frequently Used Shortcuts in
Judging Others
Projection
Stereotyping
Attributing one’s own
characteristics to other
people.
Judging someone on the
basis of one’s perception of
the group to which that
person belongs.
Specific Applications in
Organizations
 Employment Interview
 Perceptual biases of raters affect the accuracy of
interviewers’ judgments of applicants.
 Performance Expectations
 Self-fulfilling prophecy: The lower or higher
performance of employees reflects preconceived leader
expectations about employee capabilities.
Specific Applications in
Organizations (cont’d)
 Performance Evaluations
 Appraisals are often the subjective (judgmental)
perceptions of appraisers of another employee’s job
performance.
 Employee Effort
 Assessment of individual effort is a subjective judgment
subject to perceptual distortion and bias.
The Link Between Perceptions
and Individual Decision Making
Problem
A perceived discrepancy
between the current state of
affairs and a desired state.
Decisions
Choices made from among
alternatives developed from
data perceived as relevant.
Perception of
the decision
maker
Outcomes
Steps in the Rational DecisionMaking Model
1. Define the problem.
2. Identify the decision criteria.
3. Allocate weights to the criteria.
4. Develop the alternatives.
5. Evaluate the alternatives.
6. Select the best alternative.
Organizational Constraints on
Decision Makers
 Performance Evaluation
 Evaluation criteria influence the choice of actions.
 Reward Systems
 Decision makers make action choices that are favored by
the organization.
 Formal Regulations
 Organizational rules and policies limit the alternative
choices of decision makers.
 System-imposed Time Constraints
 Organizations require decisions by specific deadlines.
 Historical Precedents
5–61 influence current decisions.
 Past decisions
Basic Motivation
Concepts
Performance Dimensions
Defining Motivation
Motivation
The processes that account for an individual’s intensity,
direction, and persistence of effort toward attaining a
goal.
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries
Hierarchy of Needs Theory (Maslow)
Hierarchy of Needs Theory
There is a hierarchy of five needs—
physiological, safety, social,
esteem, and self-actualization; as
each need is substantially satisfied,
the next need becomes dominant.
Self-Actualization
The drive to become what one is capable of becoming.
Maslow’s Hierarchy of Needs
Theory X and Theory Y (Douglas
McGregor)
Theory X
Assumes that employees dislike
work, lack ambition, avoid
responsibility, and must be
directed and coerced to perform.
Theory Y
Assumes that employees like work,
seek responsibility, are capable of
making decisions, and exercise selfdirection and self-control when
committed to a goal.
ERG Theory (Clayton Alderfer)
ERG Theory
There are three groups of core needs: existence,
relatedness, and growth.
Core Needs
Concepts:
Existence: provision of
basic material
requirements.
More than one need can
be operative at the same
time.
Relatedness: desire for
relationships.
If a higher-level need
cannot be fulfilled, the
desire to satisfy a lowerlevel need increases.
Growth: desire for
personal development.
David McClelland’s Theory of Needs
Need for Achievement
Need for Affiliation
The drive to excel, to
achieve in relation to a set
of standards, to strive to
succeed.
The desire for friendly
and close personal
relationships.
Need for Power
The need to make others
behave in a way that they
would not have behaved
otherwise.
nPow
nAch
nAff
Contrasting Views of Satisfaction and
Dissatisfaction
Comparison of Satisfiers and Dissatisfiers
Two-Factor Theory
(Frederick Herzberg)
Two-Factor (Motivation-Hygiene) Theory
Intrinsic factors are related to job
satisfaction, while extrinsic factors are
associated with dissatisfaction.
Hygiene Factors
Factors—such as company policy
and administration, supervision,
and salary—that, when adequate in
a job, placate workers. When factors
are adequate, people will not be
dissatisfied.
Equity theory
 Person compares their outcome/input ratio with others
outcome/input ratio.
 Inputs refers to the characteristics which individual bring with
them to the job
 Outcomes refers to what person gets from job in terms of pay,
promotions benefits and so on.
 Inequity is defined as the perception that persons’
outcome/input ratio is not equal to others outcome/input ratio
 Negative Inequity – Under rewarded
 Positive Inequity – Over rewarded
Equity Theory (cont’d)
Distributive Justice
Perceived fairness of the
amount and allocation of
rewards among individuals.
Procedural Justice
The perceived fairness of
the process to determine
the distribution of
rewards.
Expectancy Theory
Expectancy Theory (Victor Vroom)
The strength of a tendency to act in a certain way
depends on the strength of an expectation that the act
will be followed by a given outcome and on the
attractiveness of that outcome to the individual.
Expectancy Theory Relationships
 Effort–Performance Relationship
 The probability that exerting a given amount of effort will
lead to performance.
 Performance–Reward Relationship
 The belief that performing at a particular level will lead to
the attainment of a desired outcome.
 Rewards–Personal Goals Relationship
 The degree to which organizational rewards satisfy an
individual’s goals or needs and the attractiveness of
potential rewards for the individual.
Team Dynamics
Defining and Classifying Groups
Group(s)
Two or more people who interact and influence each other,
are mutually accountable for achieving common goals
associated with organisational objectives.
Formal Group
Informal Group
A designated work group
defined by the
organization’s structure.
A group that is neither
formally structured now
organizationally determined;
appears in response to the
need for social contact.
Types of Teams
 Departmental Teams – Functional teams
 Self-Directed Teams
 Advisory teams
 Task Force (Project) Teams – multi-skilled, temporary
teams whose assignment is to solve a problem, realize an
opportunity or design a product or service
 Skunworks Teams – Usually located away from the
organisation, relatively free of its hierarchy. E.g. R & D Dept.
 Virtual Teams – Operates across space, time, and
organisational boundaries.
Challenges of Teams
 Process Losses
 Brook’s Law – E.g.. Apple’s Professional Photography Software
Program, Aperture
Performance
 Social Loafing
 How to Minimize Social Loafing




Form Smaller Teams
Specialize Task
Measure Individual Performance
Selection of employees for a team
Group Size
Team Effectiveness
 Organisational and Team
Environment
 Team Design
 Team Processes
Organisational and Team Environment
 Reward
 Communication
 Organisational Structure
 Organisational Leadership
 Physical Space
Team Design Elements
 Task Characteristics
 Task Interdependence – extent to which team members must
share information
 Pooled Interdependence
 Sequential Interdependence
 Reciprocal Interdependence
 Team Size
 Team Composition
 Co-operating – Share resources
 Coordinating – Align work with others
 Communicating – Share information
 Comforting – Show empathy, Build confidence
 Conflict Resolving
 Team Diversity
Team Processes
 Team Development
Classes of Norms:
• Performance norms
• Appearance norms
 Forming
• Social arrangement norms
 Storming
• Allocation of resources
norms
 Norming
 Performing
 Adjourning
 Team Roles
 Team Building
 Team Norms
 Team Cohesion
 Team Trust
Increasing group cohesiveness:
1. Make the group smaller.
2. Encourage agreement with group
goals.
3. Increase time members spend
together.
4. Stimulate competition with other
groups.
5. Give rewards to the group, not
individuals.
Relationship Between Group
Cohesiveness, Performance Norms,
and Productivity
Team Decision Making - Constraints
 Time Constraints
 Production Blocking – Opportune time to speak
 Evaluation Apprehension
 Groupthink – value consensus at the price of decision quality
 Group Polarization or Group Shift
Group / Team Decision Making
 Strengths
 Weaknesses
 More complete
 More time consuming
information
 Increased diversity of
views
 Higher quality of
decisions (more
accuracy)
 Increased acceptance of
solutions
(slower)
 Increased pressure to
conform
 Domination by one or a
few members
 Ambiguous
responsibility
Team Structure to Improve
Decision Making
 Interacting
 Constructive Conflicts
 Brainstorming
 Electronic Brainstorming
 Nominal Group technique
Power and Politics
TWELFTH EDTION
Power
Power
A capacity that A has to influence the
behavior of B so that B acts in
accordance with A’s wishes.
Dependency
B’s relationship to A when A
possesses something that B
requires.
A
B
Bases of Power: Formal Power
Formal Power
Is established by an individual’s position in an
organization; conveys the ability to coerce or reward,
from formal authority, or from control of information.
Coercive Power
A power base dependent on fear.
Reward Power
Compliance achieved based on
the ability to distribute rewards
that others view as valuable
Bases of Power: Formal Power
(cont’d)
Legitimate Power
The power a person receives as a result
of his or her position in the formal
hierarchy of an organization.
Information Power
Power that comes from
access to and control over
information.
Bases of Power: Personal Power
Expert Power
Influence based on special
skills or knowledge.
Referent Power
Influence based on possession
by an individual of desirable
resources or personal traits.
Charismatic Power
An extension of referent power stemming from an
individual’s personality and interpersonal style.
Dependency: The Key To Power
 The General Dependency Postulate
 The greater B’s dependency on A, the greater the power
A has over B.
 Possession/control of scarce organizational resources
that others need makes a person powerful.
 Access to optional resources (e.g., multiple suppliers)
reduces the resource holder’s power.
 What Creates Dependency
 Importance of the resource to the organization
 Scarcity of the resource
 No substitutability of the resource
Power Tactics
 Power Tactics: Ways in which individuals translate power bases into
specific actions.
 Ways of using power tactics
 Reason: Use facts and data to make a logical presentation of
ideas
 Friendliness: Being friendly before making a request
 Coalition: Getting the support of other people to back up the
request
 Bargaining: Use negotiations through exchange of favours.
 Assertiveness: Use direct and forceful approach
 Higher Authority: Getting support of Higher levels
 Sanctions: Preventing promising salary, promotions etc.
Politics
Political Behavior
Activities that are not required as part of one’s
formal role in the organization, but that
influence, or attempt to influence, the
distribution of advantages or disadvantages
within the organization.
Factors That Influence Political Behaviors
 Organisational Factors:
 Unclear performance
evaluation
 Low trust
 Role ambiguity
 High performance
pressure
 Win-lose approach to
reward allocation
 Organisational Culture
 Individual Factors:
 High personal need of
getting power
 High Machiavellian
personality
 Perceived Job
alternatives
 Insecurity
 Expectations of success
by doing politics
Employee Responses to Organizational Politics
Defensive Behaviors
Avoiding Work:
Avoiding Blame:
• Buck passing: Transferring
Responsibility
• Playing safe: Neutral position
in conflict, not showing
opinion and expressions
• Playing dumb: Showing
ignorance and Inability
• Stretching: Prolonging a
task
• Stalling: More supportive
publicly while actually
doing little
• Justifying: Developing
explanations
• Scapegoating: Placing the
blame on external factors
• Misrepresenting:
Manipulations of information
Impression Management (IM)
Impression
Management
The process by which
individuals attempt to
control the impression
others form of them.
IM Techniques:
• Conformity
• Excuses
• Apologies
• Self-Promotion
• Flattery
• Favors
Foundation of
Organizational Structure
TWELFTH EDITION
What Is Organizational Structure?
Organizational Structure
How job tasks are
formally divided,
grouped, and
coordinated.
Key Elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and
decentralization
• Formalization
What Is Organizational Structure? (cont’d)
Work Specialization
The degree to which tasks in the organization are
subdivided into separate jobs.
Division of labor:
• Makes efficient use of employee skills
• Increases employee skills through repetition
• Less between-job downtime increases productivity
• Specialized training is more efficient.
• Allows use of specialized equipment.
What Is Organizational Structure? (cont’d)
Grouping Activities
By:
Departmentalization
The basis by which jobs are
grouped together.
• Function
• Product
• Geography
• Process
• Customer
What Is Organizational Structure? (cont’d)
Authority
The rights inherent in a managerial position to give
orders and to expect the orders to be obeyed.
Chain of Command
The unbroken line of authority that extends from the
top of the organization to the lowest echelon and
clarifies who reports to whom.
Unity of Command
A subordinate should have only one superior to whom
he or she is directly responsible.
What Is Organizational Structure? (cont’d)
Span of Control
The number of subordinates a manager can efficiently
and effectively direct.
Concept:
Wider spans of management increase organizational
efficiency.
Narrow Span Drawbacks:
• Expense of additional layers of management.
• Increased complexity of vertical communication.
• Encouragement of overly tight supervision and
discouragement of employee autonomy.
Contrasting Spans of Control
What Is Organizational Structure? (cont’d)
Centralization
The degree to which decision making is concentrated
at a single point in the organization.
Decentralization
The degree to which decision making is
spread throughout the organization.
Formalization
The degree to which jobs within the
organization are standardized.
Common Organization Designs
Simple Structure
A structure characterized by a low degree of
departmentalization, wide spans of control, authority
centralized in a single person, and little formalization.
A Simple Structure:
Jack Gold’s Men’s Store
Common Organization Designs (cont’d)
Bureaucracy
A structure of highly operating
routine tasks achieved through
specialization, very formalized
rules and regulations, tasks that
are grouped into functional
departments, centralized
authority, narrow spans of
control, and decision making
that follows the chain of
command.
Common Organization Designs (cont’d)
Matrix Structure
A structure that creates dual lines of authority and
combines functional and product departmentalization.
Key Elements:
+ Gains the advantages of functional and product
departmentalization while avoiding their weaknesses.
+ Facilitates coordination of complex and interdependent
activities.
– Breaks down unity-of-command concept.
Matrix Structure (College of Business
Administration)
(Director)
(Dean)
Employee
Why Do Structures Differ?
Mechanistic Model
A structure characterized
by extensive
departmentalization,
high formalization, a
limited information
network, and
centralization.
Why Do Structures Differ?
Organic Model
A structure that is flat, uses cross-hierarchical and
cross-functional teams, has low formalization,
possesses a comprehensive information network, and
relies on participative decision making.
Why Do Structures Differ? – Strategy
Innovation Strategy
A strategy that emphasizes the introduction of major
new products and services.
Cost-minimization Strategy
A strategy that emphasizes tight cost controls,
avoidance of unnecessary innovation or marketing
expenses, and price cutting.
Imitation Strategy
A strategy that seeks to move into new products or
new markets only after their viability has already been
proven.
The Strategy-Structure Relationship
Strategy
Structural Option
Innovation
Organic: A loose structure; low
specialization, low formalization,
decentralized
Cost minimization Mechanistic: Tight control; extensive
work specialization, high formalization,
high centralization
Imitation
Mechanistic and organic: Mix of loose
with tight properties; tight controls
over current activities and looser
controls for new undertakings
Organization Structure: Its
Determinants and Outcomes