DR. PARUL YADAV
PROFESSOR
INDIVIDUAL BEHAVIOUR AND
GROUP DYNAMICS- I
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UNIT I
 Unit I: Introduction to Organizational Behaviour
 Introduction to Organizational Behaviour; Evolution of Management- Behavioral School of
Management; Nature and concepts of OB; Models of Organizational Behaviour; Relationship with
other Disciplines; Challenges in Organizational Behavior.
 Individual Behavior; MARS model of Individual Behaviour; Types of Individual Behaviour.
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WHY DID THAT HAPPEN?
 It was a bad experience. You ordered a soft drink and a sandwich. The person who served you was abrupt and
unpleasant, did not smile, ignored you, did not make eye contact, and continued their conversation with a
colleague instead of asking if you wanted anything else. They slapped your change on the counter rather than put
it in your hand, then turned away. You have used this café before, but you have never been treated so rudely. You
leave feeling angry, deciding never to return.
 How can you explain the unusual behaviour of the person who served you?
 If you have a limited understanding of organizational behaviour, then you have a limited understanding of one
of the main sets of forces that affect you personally, that influence the society and culture in which you live,
and which shape the world around you.
 Organizations affect everything that you do – sleeping, waking, dressing, eating, travelling, working, relaxing,
studying – everything
HOW CAN WE EXPLAIN YOUR EXPERIENCE IN THE CAFÉ?
 the personality and skills of the individual who served you
 poor staff training.
 staff absences have increased work pressure.

long hours, fatigue, poor work–life balance.

equipment not working properly.
 anxiety about organizational changes.

domestic difficulties – family arguments, poor health.
 low motivation due to low pay.
 an autocratic supervisor.
 a dispute with colleagues created an uncomfortable atmosphere.

timing – you came in at the wrong moment.
ORGANIZATIONAL BEHAVIOUR
 The study of the structure and management of organizations, their environments, and the actions and interactions
of their individual members and groups.
 The term Organizational Behaviour was first used by Fritz Roethlisberger in the late 1950s, because it suggested a
wider scope than human relations.
 The term behavioral sciences was first used to describe a Ford Foundation research programme at Harvard in
1950, and in 1957 the Human Relations Group at Harvard became the Organizational Behavior Group.
 Organizations do not ‘behave’. Only people can be said to behave. Organizational behaviour is shorthand
for the activities and interactions of people in organizations.
 Organizations populate our physical, social, cultural, political and economic environment, offering jobs,
providing goods and services, creating our built environment, and contributing to the existence and fabric
of communities.
 The products and services of McDonald’s, Google, Apple, Microsoft, Ford and Samsung shape our existence and
our daily experience.
 With how many organizations have you interacted in some way today?
STOP AND THINK
 Which of the following are organizations, and which are not? Explain your decision in each case.
 A chemicals processing company

The Gupta family next door

AIIMS Hospital

The local street corner gang

Local badminton club
 A terrorist cell
 A famine relief charity
 The Andaman tribe
 A primary school
WHAT IS AN ORGANIZATION?
 A formal and coordinated group of people who function to achieve particular goals.
 These goals cannot be achieved by individuals acting alone.
Characteristics of an Organization
 An organization has a structure.
 An organization consists of a group of people striving to reach goals that individuals acting alone could not
achieve.
COMMON CHARACTERISTICS OF ORGANIZATIONS
COMMON CHARACTERISTICS OF ORGANIZATIONS
 Controlled performance- setting standards, measuring performance, comparing actual with standard, and taking
corrective action if necessary.
 Organizations are concerned with controlled performance in the pursuit of goals
 Is Management a recent concept?
EVOLUTION OF MANAGEMENT
 Management and Organizations are the products of their historical and social times and places.

Thus, we can understand the management theory in terms of how people have wrestled with matters of
relationships at particular times in history
EVOLUTION OF MANAGEMENT
 The Industrial Revolution’s Influence On Management Practices:
 Machine power began to substitute for human power
 Lead to mass production of economical goods
 Improved and less costly transportation systems became available
 Created larger markets for goods.
 Larger organizations developed to serve larger markets
 Created the need for formalized management practices.
KEY MANAGEMENT THEORIES: AN OVERVIEW
THE BEHAVIORAL SCHOOL: THE ORGANIZATION IS PEOPLE
 The Hawthorne studies were conducted in order to find out the role of human resource in increasing
the production of an organization.
 The Hawthorne studies included the following experiments..
 Illumination Experiment
 Relay Assembly Test Experiments
 Mica Splitting Test Group
 Plant Interview Group
 Bank Wiring Observation Group
 Western Electric Company

Experiments Conducted between 1924-1932
 Gray and Barton, a telephone industry supply company founded in 1869 by Elisha Gray and Enos Barton
 In 1872, the company changed its name to the Western Electric Manufacturing Company
ILLUMINATION STUDIES
 Measured Light Intensity vs. Worker Output

Result : – Higher worker productivity and satisfaction at all light levels
– Worker productivity was stopped with the light levels reached moonlight intensity.
 Conclusions: – Light intensity has no conclusive effect on output – Productivity has a psychological component

Concept of ‘Hawthorne Effect’ was created
 The Hawthorne Effect— the tendency of people to behave differently (perform better) when they receive attention.
RELAY ASSEMBLY TEST EXPERIMENTS
 Manipulated factors of production to measure effect on output:

Pay Incentives (Each Girls pay was based on the other 5 in the group)

Length of Work Day & Work Week (5pm, 4:30 pm, 4pm)

Use of Rest Periods (Two 5 minutes break)

Company Sponsored Meals (Morning Coffee & soup along with sandwich)
 Results:

Higher output and greater employee satisfaction
RELAY ASSEMBLY TEST EXPERIMENTS
 Conclusions:
– Positive effects even with negative influences – workers output will increase as a response to attention
– Strong social bonds were created within the test group.
- Workers are influenced by need for recognition, security and sense of belonging
BANK WIRING OBSERVATION GROUP
 Limited changes to work conditions
 Segregated work area
 No Management Visits
 Supervision would remain the same
 Observer would record data only
 No interaction with workers
 Result: – No appreciable changes in output
 Conclusions:
– Pre existing performance norms
– Group dictated production standards
– Work Group protection from management changes.
THE HAWTHORNE STUDIES AT WESTERN ELECTRIC
The Hawthorne Effect— the tendency of people to behave differently (perform better) when
they receive attention.
Key Findings
1.
Economic incentives are less potent than generally believed.
2.
Dealing with human problems is complicated and challenging.
3.
Leadership practices and work-group pressures strongly influence productivity, satisfaction, and performance.
4.
Personal problems influence worker productivity.
5.
Effective communication is critical to success.
6.
Factors embedded in the social system influence behavior.
WHAT IS ORGANIZATIONAL BEHAVIOR?
EXPLAINING ORGANIZATIONAL BEHAVIOUR
 Positivism: a perspective which assumes that the world can be understood in terms of causal relationships
between observable and measurable variables, and that these relationships can be studied objectively using
controlled experiments. Eg :Heat a bar of metal, and it expands. Eat more salt, and your blood pressure rises.
 Variance theory an approach to explaining organizational behaviour based on universal relationships between
independent and dependent variables which can be defined and measured precisely.
TYPES OF STUDY VARIABLES IN OB
INDEPENDENT (X)
DEPENDENT (Y)
This is the response to X (the
independent variable).
It is what the OB researchers
want to predict or explain.
The interesting variable!
The presumed cause of the
change in the dependent
variable (Y).
This is the variable that OB
researchers manipulate to
observe the changes in Y.
X
Y
Predictive Ability
THE INDEPENDENT VARIABLES
The independent variable (X) can be at any of these three levels in this model:
Individual
Biographical characteristics, personality and emotions, values and attitudes, ability, perception,
motivation, individual learning and individual decision making.
Group
Communication, group decision making, leadership and trust, group structure, conflict, power and
politics, and work teams.
Organization System
Organizational culture, human resource policies and practices, and organizational structure and
design.
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THREE LEVELS OF OB ANALYSIS
Groups and Interpersonal
Relations
Individual Level
Individual differences, mental
ability, and personality
Learning, perception, attitudes,
values, and ethics
Individual decision making
and creativity
Foundation concepts of motivation
Conflict, stress, and well-being
Interpersonal communication
Group dynamics and teamwork
Leadership
Power, politics, and influence
The Organizational System
and the Global Environment
Organizational structure and design
Organizational culture and change
The learning organization and
knowledge management
Cultural diversity and international
organizational behavior
DEPENDENT VARIABLE
Things which will be affected by OB
Productivity
Absenteeism
Having too high employee absent rate will affect productivity
Turnover
Not all turnover is bad
High turnover rate in some degree affect productivity
Organizational citizenship behavior (OCB)
Helping others on one's work team
Volunteering for extra job activities
Avoiding unnecessary conflicts
Making constructive statements about one's work group and the overall organization
Job satisfaction
CONTEMPORARY OPPORTUNITIES AND CHALLENGES
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CONTEMPORARY CHALLENGES AND OPPORTUNITIES
Continuing
Globalization
Workplace
Diversity &
Inclusion
Total Quality
Management
Coping with
Temporariness
Technological
Advancement
Responding to
Economic
Pressures
Improving
Ethical
Behavior
CONTINUING GLOBALIZATION
 Suppose you are visiting Taiwan and attempting to do business there. You are given a gift
by your Taiwanese host, who is your prospective client. Your interpreter explains that it
is customary to exchanges gifts before transacting business.You have no gift to offer.
 How would you handle the situation?
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CONTINUING GLOBALIZATION
 The process in which worldwide integration and interdependence are promoted across
national borders.
 One of the unique challenges of this tide of globalization is to forge cooperation between
organizations and their employees worldwide and pursue the public good with social
responsibility in mind.
Increased Expatriate
Assignments
Working With People From
Different Cultures
Workforce Diversity & Inclusion
 Workforce Diversity-The heterogeneous characteristics of organizations, work groups,
and teams that recognize that their workers vary in gender, age, race, ethnicity, sexual
orientation, and other characteristics.
 Workforce Inclusion- The act of creating and maintaining workplaces that support and
leverage the diversity of their members.
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Dimensions of Workforce Diversity
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 Millennials only want to communicate with coworkers via text — and Baby Boomers don’t text, right?

And you need to attract those tech-y Millennials with promises of flexible work schedules, but their
older counterparts all want a traditional workday, correct?
 Do generational difference impact working of the organizations?
DIVERSITY AND DECISION MAKING
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INDIVIDUAL BEHAVIOR

Why do Individuals behave the way they do and perform well or poorly in the workplace?
MARS MODEL OF INDIVIDUAL BEHAVIOR
Role
Perceptions
Values
Personality
Motivation
Individual
Behavior
and Results
Perceptions
Emotions
Attitudes
Stress
Ability
Situational
Factors
MARS Model seeks to explain individual behavior as a result of internal and
external factors or influences acting together.
 All the above four factors are critical and influence the individual behavior and performance, if any one of them is low
in a given situation the employee will perform poorly.

An enthusiastic salespeople (motivation) who understand his or her job duties (role perceptions) and has sufficient
resources (situational factor) will not perform his or her jobs well if they lack sufficient knowledge and sales skill
(ability) .
EMPLOYEE MOTIVATION
 Internal forces that affect a person’s
voluntary choice of behavior. Motivational
elements are:

Direction – where and what (clarity of goal)

Intensity – how much (amount of effort)

Persistence- till when (continuing the efforttime factor)
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EMPLOYEE ABILITY
 Natural aptitudes (natural talents) and learned capabilities (skills and
knowledge) required to successfully complete a task.
 Ability = Aptitude + Learned capabilities + Training and Experience
 Aptitudes − natural talent that helps people
learn more
effectively.
efficiently
and
perform
 Learned capabilities − accomplished skills
and knowledge.
 Competencies − abilities, individual values,
personality traits and other features of
people that result in superior performance.
 Person  job matching

selecting the best

training & developing
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EMPLOYEE ROLE PERCEPTIONS
 Refer to how clearly people understand the job
duties (role) assigned to them or expected of
them.
 Beliefs about what behavior is required to
achieve the desired results:
 Understanding what tasks to perform
 Understanding relative importance of tasks
 Understanding preferred
behaviors to accomplish tasks
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SITUATIONAL FACTORS
 Environmental conditions beyond the individual’s short-
term control that constrain or facilitate behavior.
 Controllable factors are:
 time
 people
 budget
 work facilities
 Uncontrollable factors are:
 government policies
 economic conditions
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TYPES OF BEHAVIOR IN ORGANIZATIONS
Task Performance
Organizational
Citizenship
• Goal-directed behaviours under
person’s control
• Performance beyond the required job
duties
• ex. attending events, sharing resources,
suggesting ideas
TYPES OF BEHAVIOR IN ORGANIZATIONS
Counterproductive
Work Behaviours
• Voluntary behaviour that potentially harms
the organization
• ex. conflict, stealing, wasting resources,
untruths, shortcuts
Joining/staying with the
Organization
• human capital, turnover negative, but
positive when there is a need for new
skilled workers
Maintaining Work
Attendance
Attending work at required times
absenteeism - loss of staff and employee skill
presenteeism - showing up to work although
unwell, injured and preoccupied or in dangerous
job (when absenteeism is encouraged)
CRITICAL THINKING QUESTION- 1
 An insurance company has high levels of absenteeism among the office staff. The head of office administration argues
that employees are misusing the company’s sick leave benefits. However, some of the mostly female staff members
have explained that family responsibilities interfere with work.
 Using the MARS model, as well as your knowledge of absenteeism behavior, discuss some of the possible reasons for
absenteeism here and how it might be reduced
 They don’t want to attend work that day (motivation),
 They don’t realize that this is their workday (role perceptions),
 Environmental conditions prevent them from attending work (situational factors)- female employees
are absent, family responsibilities interfere with their work attendance.
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CRITICAL THINKING QUESTION- 2
 You notice that the sales representative for one region made 20 percent fewer sales to new clients over the
past quarter than salespeople located elsewhere across the country.
 Use the model of individual behavior to explain why his or her performance was lower than the performance
of other salespeople.
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 Motivation: Employees in one region are not as motivated to perform their jobs and, specifically, not as motivated
to call on new clients as are the sales representatives in the other parts of the country.
 Ability: Sales representative in the one region might lack the necessary skills to market the company’s product to
new clients. They might lack persuasive communication or other interpersonal skills.
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 Role Perceptions: The sales representatives in one region might not be aware that the company wants more effort
placed in securing sales from new customers. For example, they might be putting more effort into increasing sales
from existing clients whereas sales representatives elsewhere are spending more time finding new clients.
 Situational Contingencies: The general economy or specific demand for the company’s product might be unusually
low in that region. Perhaps this market is already saturated, meaning that most of the potential clients are already
using the product
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