ORGANIZATIONAL

BEHAVIOUR
BBA I Semester
2024-25
 UNIT-1

Overview of Organization
Behaviour
 Introduction:
ORGANISATION:
An organization is a group of people working together in a formally organized
way to achieve a common objective. The main objective is profit
maximization.

Features of an organization:-
 Group of people
 Formally organized people/structure
 Co-ordination among people
 Rationality
 Purposefully created to achieve a common goal

BEHAVIOUR:
It is how a person behaves. It is an observable and measurable activity of human
being.
 Organizational Behaviour
Meaning:
Organizational Behavior (OB) is the study of human behavior within organizational
settings, the interface between human behavior, and the organization itself.

Definition:
“Organizational Behavior is the study and application of knowledge about how
people act within the organization”. Definition – Keith Davis

“It is a field of study that investigates the impact those individuals, groups;
structures have on behavior within the organization, for the purpose of applying
such knowledge towards improving organizational effectiveness”. - Stephen P
Robbins
Nature of Organizational Behaviour :
1. Multidisciplinary: Draws from psychology, sociology, anthropology, economics,
and political science.

2. Dynamic: Involves constantly changing relationships and situations.

3. Systematic: Involves the systematic study of relationships between individuals and

organizations.

4. Goal-Oriented: Aims to improve organizational effectiveness and efficiency.

5. It has humanistic approach: OB considers human feelings, their values and

attitudes and considers that human beings are not machines and they too are cared
for.

6. It is applied science: The principles of OB are proven and can be applied to solve
organizational problems.
7. It has optimistic approach: It has positive approach and views that the employees
well contribute positively to achieve the objectives of the organization.

8. Whole person concept: The concept states that a individual employed by the
organization is cannot be separated form his personal life aspects .

9. Role of a person : Each individual plays different roles in his life time.( Parent, son ,
Friend , Spouse, team member, supervisor, follower, advisor, consumer, investor etc.,
).Hence it becomes necessary for him to understand the role clearly and act
accordingly.

10. It is developmental in nature: It aims at the development of its employees and

helps them to attain their goals.

11. It has total systems approach: It takes all variables in consideration. It studies
individuals and groups in formal and informal relations in organizations.
FOUNDATIONS OF OB / BASIC CONCEPT OF OB
1. Individual differences exist: Every individual has a unique personality,
which is stable in nature. Hence each person is different from the other based
on his physiological, psychological and social characteristics.
2. Behavior is caused: Behavior is what a person does and it is cause and effect
relationship. It means that there is a reason behind every single behavior on any
individual. Hence the cause should be evaluated by the manager in an
organization.
3. Behavior is complex: Though OB believes that behavior is caused, yet it is
very difficult to understand human behavior.
4. Value of a person: Human value is given importance. It means one should be
treated with respect and dignity.
5.Whole person concept
The concept states that a individual employed by the organization is cannot be
separated form his personal life aspects .Though an organization employs a person‟s
skill & brain in his organization, yet it is a fact that an individual cannot be separated
from his home life and work life.
6.Role of a person: A role is a pattern of actions expected of a person in activities
involving others. Each individual plays different roles in his life time.(Parent, son
Friend , Spouse, team member, supervisor, follower, advisor, consumer, investor
etc.).Hence it becomes necessary for him to understand the role clearly and act
accordingly.
7.Difference between individual behavior and group behavior: Individual behavior
may be good but group behavior may be bad .Group behavior may be good but
Individual behavior may be bad. As Individual behavior may vary form group
behavior, human behavior should be studied in both the aspects.
Need of Organizational Behaviour:
1. Understanding Individual and Group Behaviour
Organizations consist of individuals and groups with diverse attitudes, beliefs, and
behaviors. Understanding these individual differences is essential to creating an
environment where employees can thrive. OB helps managers understand why
people behave the way they do and how this affects the organization’s performance.

Case Study: Hawthorne Studies (1924-1932)

The Hawthorne Studies, conducted at the Western Electric Hawthorne Works,
showed that workers' productivity increased not because of changes in physical work
conditions, but because they felt valued and observed. The studies emphasized the
importance of psychological factors over purely physical or mechanical ones. This
highlighted how social relations and group dynamics play a significant role in
individual behavior and organizational productivity.
2. Boosting Employee Productivity and Performance
For organizations to succeed, improving employee productivity and performance is
crucial. OB provides insights into motivation, leadership, and job satisfaction, all of
which are drivers of high performance.

Case Study: General Electric’s (GE) Work-Out Program

GE introduced the Work-Out program to improve productivity by involving
employees directly in problem-solving processes. The program encouraged open
communication, accountability, and teamwork. Employees were asked to solve
problems without management interference, leading to a more engaged workforce and
significant productivity improvements.

3. Enhancing Employee Motivation and Job Satisfaction

Motivated employees are more productive, engaged, and loyal. OB helps managers
create environments where employees are motivated by addressing factors such as
rewards, recognition, work-life balance, and job satisfaction.
Case Study: Google’s Employee Motivation Strategy
Google is a classic example of a company that uses OB principles to maintain high motivation and
job satisfaction. Google offers employees a range of benefits, including flexible working hours, on-
site services (laundry, gyms, cafeterias), and freedom to work on side projects. This creates a high
level of job satisfaction, which in turn fosters creativity and innovation, key drivers of Google's
continued success.

4. Facilitating Organizational Change and Adaptability

Organizations must continually adapt to market changes, technological advancements, and
globalization. OB helps managers navigate these changes by understanding how employees react to
change and implementing strategies to reduce resistance and build a positive attitude toward
transitions.
Case Study: IBM’s Transformation under Lou Gerstner
When Lou Gerstner became CEO of IBM in 1993, the company was on the verge of bankruptcy due
to its inability to adapt to the rapidly changing technology landscape. Gerstner recognized that for
IBM to survive, it needed not just a technological transformation, but a cultural one. He focused on
changing the behavior and mindset of employees by promoting cross-functional collaboration and a
client-first attitude. As a result, IBM made a successful turnaround from a hardware-centric
company to a service-oriented company.
5. Improving Leadership and Management Practices
Effective leadership is critical for steering an organization toward its goals. OB helps
managers identify and adopt leadership styles that best suit their teams and
organizational culture. Leaders who understand OB are better equipped to inspire,
motivate, and manage their teams.

Case Study: Transformational Leadership at Apple under Steve Jobs

Steve Jobs’ leadership at Apple is a prime example of transformational leadership, a
concept studied in OB. Jobs was known for inspiring his employees to think beyond
conventional boundaries. His visionary leadership style not only motivated employees
to create innovative products but also helped Apple become one of the most successful
companies in the world. The introduction of products like the iPhone and iPad
transformed the technology industry.
6. Managing Workforce Diversity
With globalization and the rise of cross-cultural teams, understanding and managing
diversity has become essential. OB helps managers create an inclusive work
environment where employees from diverse backgrounds can collaborate effectively.

Case Study: Starbucks and Diversity Management

Starbucks has been committed to creating a diverse and inclusive workforce, particularly
in leadership roles. The company believes that a diverse workforce leads to better
innovation and customer relations. Starbucks provides training programs to address
unconscious bias, ensuring that its diverse workforce can collaborate effectively. This
has helped Starbucks maintain a strong global presence and adapt to the needs of a
diverse customer base.

7. Enhancing Communication within the Organization

Effective communication is vital for ensuring that organizational goals are understood
and met. OB provides insights into how communication flows within organizations, how
barriers can be reduced, and how technology can be used to improve communication.
Case Study: Cisco’s Use of Collaborative Communication Tools
Cisco, a global leader in networking and telecommunications, uses its own advanced
communication tools to facilitate collaboration among employees spread across different
countries and time zones. OB principles were used to design Cisco's collaborative
platforms, ensuring that employees could communicate effectively, share ideas, and
resolve issues quickly. This seamless communication has been a key factor in Cisco’s
innovation and operational efficiency.

8. Resolving Conflicts and Promoting Healthy Workplace Relationships

Conflicts are inevitable in any organization due to differing goals, values, and interests. OB
helps managers identify sources of conflict and implement strategies for conflict resolution,
which fosters a more harmonious and productive work environment.
Case Study: PepsiCo’s Conflict Resolution Strategy
PepsiCo implemented conflict resolution programs focused on open communication and
negotiation techniques to resolve disputes between employees and management. These
programs helped reduce the negative impact of conflicts, improving team collaboration and
enhancing employee morale. By focusing on OB principles of fair treatment and
communication, PepsiCo was able to reduce workplace conflicts significantly.
9. Improving Decision-Making Processes
Good decision-making is at the heart of every successful organization. OB offers
tools and models to improve decision-making processes by understanding how
individuals and groups make decisions, what biases might affect them, and how
group dynamics influence outcomes.
Case Study: Toyota’s Consensus-Based Decision-Making
Toyota’s decision-making process is rooted in OB principles such as collaboration
and consensus-building. The company’s famous "Five Whys" method involves
asking why a problem occurred five times to get to the root cause. This method
encourages deeper analysis and ensures that decisions are not made based on
superficial factors. This approach has led to continuous improvement and has been a
key part of Toyota’s success in quality control and production.

10. Creating a Positive Organizational Culture

Organizational culture plays a pivotal role in determining employee engagement,
performance, and loyalty. A positive culture promotes innovation, trust, and
collaboration. OB helps in shaping and maintaining a culture aligned with
organizational goals.
Case Study: Netflix’s Corporate Culture
Netflix has developed a corporate culture based on freedom and responsibility.
Employees are given a high degree of autonomy to make decisions, but they are also
held accountable for their results. Netflix encourages innovation by fostering a culture of
trust, transparency, and continuous feedback. This has contributed to Netflix's ability to
adapt quickly to industry changes and maintain its competitive edge in the streaming
industry.

11. Promoting Ethical Behaviour

Ethical behavior is essential for long-term organizational success. OB provides insights
into how ethical behavior can be encouraged and maintained within organizations,
ensuring trust and integrity in business operations.
Case Study: Johnson & Johnson’s Tylenol Crisis (1982)
Johnson & Johnson’s response to the 1982 Tylenol crisis is a hallmark example of ethical
behavior in business. When several people died after consuming Tylenol laced with
cyanide, the company immediately recalled 31 million bottles of Tylenol from the
market. This decision, based on ethical considerations rather than short-term profits,
preserved the company’s reputation and regained public trust.
Significance of Organizational Behaviour :
Organizational Behaviour (OB) is the study of how individuals and groups act within
organizations. It helps to improve the overall performance and effectiveness of
organizations. The following points explain the significance of OB, along with
corresponding case studies to illustrate its relevance:

1. Improving Productivity and Efficiency

OB helps in understanding how to enhance the productivity and efficiency of
employees by analyzing their behavior and motivation levels.

Case Study: The Ford Motor Company used OB principles to implement assembly
line production in the early 1900s. By understanding the workers’ behaviors and
optimizing the workflow, they reduced production time for a car from 12 hours to just
2 hours and 30 minutes. This significantly increased productivity while maintaining
employee satisfaction.
2. Enhancing Employee Motivation and Job Satisfaction
Employee motivation plays a critical role in determining job satisfaction, which can lead
to higher performance. OB helps managers implement motivational techniques and
create a supportive environment.

Case Study: Google is known for its innovative workplace culture. They utilize OB
concepts like offering flexible work hours, promoting creativity, and providing
employees with autonomy in their projects. This has led to high levels of job satisfaction
and innovation at Google.

3. Improving Communication
OB helps organizations improve communication across different hierarchical levels and
departments, leading to better coordination and fewer misunderstandings.

Case Study: Southwest Airlines focuses on open communication and empowering

employees to make decisions. Their internal communication culture is strong, which
helps the company in providing excellent customer service. Open communication
ensures smoother operations and faster conflict resolution.
4. Building Effective Leadership
Leadership styles significantly impact organizational culture and employee
performance. OB helps in identifying the most effective leadership style for different
situations.

Case Study: Steve Jobs at Apple exhibited transformational leadership, driving

innovation and pushing employees to go beyond their limits. His leadership style is
often studied in OB for its impact on Apple's success, innovation, and employee
development.

5. Encouraging Teamwork and Collaboration

OB emphasizes the importance of teams in organizations and how they can be
developed and managed for better outcomes.

Case Study: Pixar encourages teamwork through their daily "dailies" meetings,
where all members, including directors, provide feedback on ongoing projects. This
culture of collaboration has enabled Pixar to consistently produce critically acclaimed
and successful films.
6. Managing Organizational Change
Organizations must frequently adapt to internal and external changes, and OB
provides tools for managing change effectively without disrupting business
operations.

Case Study: IBM’s Transformation in the 1990s under Lou Gerstner is an excellent
example of change management. By focusing on employee behavior and
organizational culture, Gerstner managed to turn IBM from a hardware company to a
service-driven company, saving it from near collapse.

7. Developing a Positive Organizational Culture

A positive organizational culture enhances employee morale, encourages ethical
behavior, and promotes an atmosphere conducive to growth and innovation.

Case Study: Zappos is famous for its unique corporate culture, which promotes
happiness, creativity, and customer-centricity. Employees are given autonomy, and
customer service is prioritized over profits. Zappos' focus on culture has led to low
turnover rates and high customer satisfaction.
8. Conflict Resolution and Problem Solving
OB helps managers identify sources of conflict and implement strategies to resolve
them, ensuring a healthy work environment.

Case Study: Airbnb experienced significant internal conflicts during its early
years, especially among co-founders. However, by focusing on OB principles such
as communication, trust-building, and leadership development, they were able to
manage the conflicts, leading to its rapid growth and success.

9. Enhancing Decision-Making Processes

OB enables managers to understand the behavioral aspects of decision-making,
which helps in making more informed and rational decisions.

Case Study: Toyota's Decision-Making Process emphasizes consensus and

collaboration. Their "Five Whys" method encourages in-depth exploration of
problems and ensures that decisions are based on collective input. This approach
has led to better quality control and continuous improvement.
10. Promoting Work-Life Balance
OB research highlights the importance of work-life balance in employee performance
and retention. Organizations adopting these practices see higher employee morale and
lower burnout rates.

Case Study: Salesforce has implemented policies to promote work-life balance, such
as flexible work arrangements and mental health programs. These practices have
improved employee well-being and increased company loyalty, contributing to
Salesforce's success in the tech industry.
Disciplines Contributing to Organizational Behaviour:
Organizational Behaviour (OB) is a multidisciplinary field, drawing on insights from
various social sciences. The objective of OB is to understand, predict, and manage
human behavior in organizations. The key contributing disciplines that shape the study
of OB include:
1. Psychology
2. Sociology
3. Social Psychology
4. Anthropology
5. Political Science
6. Economics
7. Management Science (Operations Research)
8. Ergonomics (Human Factors Engineering)
1. Psychology
Psychology is the study of human behavior and mental processes. In OB, psychology
helps to understand individual behavior, including learning, motivation, personality,
emotions, attitudes, and leadership.
Psychology is the most significant contributor to OB, especially in the understanding
of individual and group behavior.
Key Areas of Contribution:
•Individual Differences: Personality, intelligence, values, and attitudes.
•Perception and Attribution: How individuals interpret and make sense of their
environment.
•Motivation: Theories of motivation like Maslow's Hierarchy of Needs, Herzberg’s
Two-Factor Theory, and Vroom’s Expectancy Theory help managers understand what
drives employee behavior.
•Emotions and Moods: How emotions (e.g., happiness, anger) affect job performance
and decision-making.
•Learning and Development: Theories of learning (classical conditioning, operant
conditioning, social learning theory) and their role in skill acquisition and behavior
modification.
Example:
•Personality Traits in Leadership: Companies like Zappos hire based on cultural fit
and personality traits, emphasizing the importance of individual personality in team
performance and leadership development.
Case Study:
•Hawthorne Studies (1920s-1930s): These studies at the Western Electric Company
revealed the psychological effects of attention and social factors on productivity,
leading to the "Hawthorne Effect" — a major influence on the human relations
movement.

2. Sociology:
Sociology is the study of social systems and their impact on behavior. In OB,
sociology focuses on group behavior, social structures, organizational culture, and how
people interact within organizations.
Sociology offers insights into social systems, group dynamics, and the broader social
context within which organizations function. It provides a macro-level view of
organizational behavior by focusing on how individuals operate in group settings.
Key Contributions to OB:
•Group Dynamics: How people behave in groups and the impact of roles, norms,
and status on group behavior.
•Organizational Structure: The arrangement of tasks, responsibilities, and
authority. Examples include hierarchical, flat, matrix, and network structures.
•Formal and Informal Organization: Differences between the formal structure (the
official system) and informal structure (relationships and networks formed among
employees).
•Social Stratification and Inequality: How class, gender, ethnicity, and other social
distinctions affect behavior in organizations.
•Bureaucracy: Max Weber’s theory of bureaucracy provides a systematic framework
for organizing large companies, stressing rationality, rules, and authority.
Example:
IBM’s Organizational Culture and Group Dynamics:
IBM values teamwork, collaboration, and a culture of innovation. The company uses
cross-functional teams where employees from different departments come together to
work on projects, promoting diverse perspectives and solutions. IBM’s focus on team
dynamics fosters cooperation, creativity, and problem-solving.
Case Study:
The Stanford Prison Experiment (1971):
This psychological experiment by Philip Zimbardo shows how group behavior and social
roles can influence individuals' actions. Although it was not conducted in a workplace, its
findings are critical for OB in understanding group dynamics and power structures within
organizations.

3. Social Psychology
Social Psychology combines elements of psychology and sociology to explore how people
influence one another in social settings. It focuses on interpersonal behavior, group
influence, and the role of social factors in shaping individual behavior.

Key Areas of Contribution:

Group Behavior: How groups form, communicate, and make decisions.
Interpersonal Communication: How effective communication, persuasion, and
negotiation take place in organizations.
Conflict and Cooperation: Understanding how conflict arises in organizations and the
strategies for conflict resolution, negotiation, and mediation.
Social Influence: Concepts like conformity, groupthink, and peer pressure that affect
decision-making processes.

Example:
Team Dynamics in Amazon: Amazon’s use of "Two Pizza Teams" (teams small
enough to be fed by two pizzas) encourages collaboration while minimizing
groupthink, ensuring diverse viewpoints and agile decision-making.

Case Study:
Stanford Prison Experiment (1971): While not an organizational study, this
experiment by Philip Zimbardo highlighted the power of social roles, authority, and
group dynamics — showing how easily individuals conform to roles in group settings.

4. Anthropology
Anthropology studies human societies, their cultures, and their development.
In OB, anthropology helps understand the influence of organizational culture, social
norms, and cross-cultural differences on employee behavior and organizational
practices.
Important Contributions to Organizational Behaviour (OB):
1.Cross-Cultural Understanding: It aids in managing cultural diversity, particularly in
global organizations, by recognizing differences in communication, work styles, and
decision-making.
2.Ethnographic Research: Ethnography, a method from anthropology, involves
observing workplace behaviors to uncover hidden problems, improving organizational
practices.
3.Leadership Styles: Anthropology helps explain how leadership is perceived
differently across cultures, guiding leaders to adapt their approach based on cultural
contexts.
4.Symbols and Meaning: It shows how rituals, logos, and symbols in organizations
shape identity and reinforce values.
5.Workplace Rituals: Anthropology studies workplace traditions and rituals, which
influence employee behavior and reinforce cultural values.
6.Adapting to Change: Anthropology helps organizations manage change by
understanding resistance to new processes or mergers and suggesting ways to integrate
cultures.
Case Study:
Walmart’s Failure in Germany (1997-2006): Walmart’s failure to adapt its American
customer service practices to the German cultural context (such as insisting on overly
friendly behavior) led to poor customer experiences and eventually forced the company to
exit the market.
5. Political Science
Political Science examines power, authority, governance, and influence within
organizations. It helps in understanding the internal politics, power struggles, and decision-
making processes within organizations.
Key Areas of Contribution:
Power Dynamics and Authority: How power is distributed in organizations and the
impact of different types of power (legitimate, coercive, referent, expert) on behavior.
Organizational Politics: Informal, often hidden efforts to influence organizational
decisions, especially for personal gain or advantage.
Conflict Resolution: Understanding the nature of conflicts in organizations and methods to
resolve them.
Leadership and Governance: How leadership styles and political behavior influence
organizational success and employee engagement.
Diversity and Inclusion: It highlights the benefits of workplace diversity and helps
build inclusive environments where different perspectives are valued.
Example:
Internal Politics at Uber: Uber’s rapid rise was marked by significant internal
power struggles, leading to the ousting of its CEO Travis Kalanick. The political
maneuvering within Uber serves as a classic example of political behavior in
organizations.
Case Study:
HP’s Boardroom Conflict (2006): Hewlett-Packard experienced a major boardroom
conflict over leadership decisions, leading to an investigation, public scandal, and
executive resignations. This demonstrates how political dynamics can disrupt an
organization’s stability.

6. Economics
Economics, while not typically associated with OB, plays an important role in
shaping behavior in organizations by examining how scarce resources are allocated
and how incentives and rewards influence individual and organizational
performance.
Key Areas of Contribution:
Incentives and Rewards: Understanding how financial and non-financial rewards
(bonuses, salaries, stock options, promotions) motivate employees.
Cost-Benefit Analysis: Helps managers make decisions regarding resource allocation,
balancing costs with organizational outcomes.
Supply and Demand of Labor: Understanding the labor market, employment trends, and
their impact on hiring, retention, and employee morale.
Organizational Efficiency: Concepts like productivity, cost-cutting, and profit
maximization influence decisions about organizational behavior.
Example:
Pay-for-Performance Models: Many organizations, such as investment banks and
consultancies, use pay-for-performance systems to motivate employees, aligning
individual performance with organizational goals.
Case Study:
Toyota’s Lean Manufacturing: Toyota’s lean production system emphasizes waste
reduction, efficiency, and cost-effectiveness, demonstrating how economic principles like
efficiency and resource optimization influence organizational practices and employee
behavior.
Key Areas of Contribution:
Cultural Understanding: How different cultures (both national and organizational)
shape work practices, communication, and leadership styles.
Rituals and Symbols: The role of corporate rituals (like awards ceremonies) and
symbols (logos, dress codes) in maintaining organizational identity and cohesion.
Cultural Adaptation: How organizations and employees adapt to changes in the
environment, such as mergers or globalization.
Comparative Studies: Comparative analysis of different organizational cultures and
their influence on employee behavior, innovation, and productivity.

Example:
Starbucks’ Global Expansion Strategy: Starbucks adapts its business model to local
customs and tastes in various countries, respecting cultural differences and maintaining
brand identity, demonstrating an anthropological understanding of cross-cultural
management.
7. Management Science (Operations Research)
Management Science focuses on quantitative techniques and decision-making tools
that help in solving complex problems related to resource allocation, production,
and operations.

Key Areas of Contribution:

•Decision-Making Models: Quantitative models that help managers make data-
driven decisions.
•Optimization Techniques: Techniques like linear programming and simulation
used to improve organizational efficiency and productivity.
•Workflow and Process Design: How workflow can be optimized to improve
employee performance and job satisfaction.

Example:
•Amazon’s Use of Data Analytics: Amazon uses big data and predictive analytics
to optimize its logistics, manage inventory, and improve customer service,
showcasing the role of management science in organizational behavior.
Case Study:
•Ford’s Assembly Line Innovation: Ford’s use of operations research and process
optimization in the assembly line revolutionized manufacturing, increasing
efficiency and changing organizational behavior toward time management and
productivity.

8. Ergonomics (Human Factors Engineering)

Ergonomics is the study of how physical environments and tools impact human
efficiency, safety, and well-being in the workplace.

Key Areas of Contribution:

•Workplace Design: The design of workspaces, tools, and machinery to minimize
fatigue, injury, and inefficiency.
•Human-Machine Interaction: Understanding how employees interact with
technology and machines to improve efficiency and safety.
•Work Environment: How physical factors like lighting, noise, and temperature
affect job performance and well-being.
Example:
•Google’s Ergonomic Workstations: Google invests heavily in ergonomically
designed workspaces that encourage creativity, comfort, and productivity. By
ensuring that employees have a comfortable working environment, Google
enhances employee satisfaction and performance.

Case Study:
•Boeing 737 Max Crisis (2019): Human factors engineering was a critical
component in the analysis of Boeing’s design flaws in the 737 Max, which
contributed to two fatal crashes. Poor ergonomics and a lack of attention to human-
machine interaction were major factors in the disaster.
Foundation of Individual Behavior
The study of individual behavior within organizations is a fundamental aspect of
Organizational Behaviour (OB). Understanding the foundations of individual
behavior helps in managing and improving employee performance, satisfaction, and
overall organizational effectiveness. Below is a detailed exploration of the
foundations of individual behavior, including key concepts, theories, and their
practical applications.

1. Personality
Definition: Personality refers to the unique set of characteristics and traits that
define an individual's behavior, attitudes, and feelings. It influences how individuals
perceive and interact with the world around them.

Key Theories:
Trait Theory: Personality traits are consistent patterns of behavior and thinking.
Key models include the Big Five Personality Traits (Openness, Conscientiousness,
Extraversion, Agreeableness, Neuroticism).
Myers-Briggs Type Indicator (MBTI): A personality assessment tool that
categorizes individuals into 16 personality types based on preferences in perception
and judgment (e.g., Introversion vs. Extraversion).
Practical Applications:
Hiring and Selection: Personality assessments help in selecting candidates whose
traits align with job requirements.
Team Building: Understanding personality types can enhance team dynamics and
collaboration.

Case Study: Google’s Hiring Practices use personality assessments and behavioral
interviews to select candidates who fit well with the company’s culture and values.
This approach helps in building teams that are cohesive and effective.

2. Perception
Definition: Perception is the process by which individuals interpret and make sense
of their sensory experiences. It influences how people view their environment,
colleagues, and organizational events.
Key Concepts:
Selective Perception: Tendency to focus on certain aspects of the environment
while ignoring others.
Attribution Theory: How individuals explain the causes of their own and others'
behaviors (e.g., internal vs. external attributions).

Practical Applications:
Performance Reviews: Managers need to be aware of biases in perception to
ensure fair and accurate evaluations.
Conflict Resolution: Understanding how perception affects interactions can help in
resolving conflicts more effectively.

Case Study: The Challenger Space Shuttle Disaster exemplifies how selective
perception and attribution biases can lead to catastrophic outcomes. Decision-
makers failed to adequately perceive and act on warnings about the O-rings’
potential failure, which contributed to the disaster.
3. Motivation
Definition: Motivation is the internal and external factors that stimulate people to take
action and achieve goals. It drives employees to perform at their best and engage in
their work.
Key Theories:
Maslow’s Hierarchy of Needs: Suggests that individuals are motivated by fulfilling
needs in a hierarchical order: physiological, safety, social, esteem, and self-
actualization.
Herzberg’s Two-Factor Theory: Differentiates between hygiene factors (e.g., salary,
work conditions) that prevent dissatisfaction and motivators (e.g., recognition,
achievement) that drive satisfaction.
Self-Determination Theory: Emphasizes the role of intrinsic motivation (autonomy,
competence, relatedness) in driving behavior.
Practical Applications:
Incentives: Designing reward systems that address both hygiene factors and motivators
can enhance employee motivation.
Job Enrichment: Providing opportunities for growth and autonomy can increase job
satisfaction and performance.
Case Study: Microsoft’s Employee Motivation Programs involve offering
opportunities for personal and professional development, autonomy in work, and
recognition for achievements. These practices help maintain high levels of motivation
and engagement among employees.

4. Learning

Definition: Learning refers to the process of acquiring new or modifying existing

knowledge, behaviors, skills, values, or preferences. It plays a crucial role in how
individuals adapt and perform in their roles.

Key Theories:
Classical Conditioning: Learning through association (e.g., Pavlov’s dogs).
Operant Conditioning: Learning through rewards and punishments (e.g., Skinner’s
reinforcement theory).
Social Learning Theory: Learning by observing and imitating others (e.g.,
Bandura’s model).
Practical Applications:
Training Programs: Designing effective training programs that incorporate
principles of learning can improve employee skills and performance.
Onboarding: Effective onboarding processes can accelerate learning and adjustment
for new employees.

Case Study: IBM’s Training Initiatives include a variety of learning methods such as
workshops, online courses, and mentoring. These initiatives help employees
continuously develop their skills and adapt to technological advancements.

5. Emotions and Affect

Definition: Emotions and affect refer to the feelings and moods that influence an
individual’s behavior and interactions in the workplace. They can affect decision-
making, performance, and interpersonal relationships.
Key Concepts:
Emotional Intelligence (EI): The ability to recognize, understand, and manage one’s
own emotions and the emotions of others.
Practical Applications:
Emotional Intelligence Training: Enhancing EI among employees can improve
interpersonal skills and leadership effectiveness.
Workplace Well-being: Creating a supportive environment that addresses emotional
needs can enhance overall employee satisfaction.
Case Study: Microsoft’s Embracing Empathy Initiative focuses on developing
emotional intelligence among leaders and employees to improve communication and
collaboration. This initiative has led to better workplace relationships and increased
job satisfaction.

6. Values and Attitudes

Definition: Values are core beliefs that guide individuals’ behaviors and decisions,
while attitudes are evaluative judgments about various aspects of work and life.

Key Theories:
Schwartz’s Value Theory: Identifies ten basic values that are recognized across
cultures, such as power, achievement, and benevolence.
Attitude-Behavior Consistency: The degree to which an individual’s attitudes align
with their behavior.

Practical Applications:
Organizational Culture: Aligning organizational values with employee values can
enhance commitment and reduce turnover.
Change Management: Understanding attitudes toward change can help in designing
strategies to manage resistance and facilitate smoother transitions.

Case Study: Ben & Jerry’s Values-Driven Approach integrates core values like social
responsibility and environmental sustainability into its business practices. This
alignment of organizational values with employee values has contributed to high
employee engagement and customer loyalty.
Organizational Models
Organizational Models describe how companies are structured, how they motivate
employees, and how they achieve their goals. Below, I explain each organizational
model in great detail, with simplified language and easy-to-understand examples to
help you grasp these concepts effectively.

1. Autocratic Model – Power and Control

The autocratic model is based on centralized power, where one leader makes all
decisions, and employees are expected to follow orders without questioning. It is a
rigid, top-down model where the manager or leader holds all the authority.

Key Features:
Centralized Decision-making: The leader makes decisions without consulting
employees.
Obedience-based: Employees follow orders and don’t participate in decision-
making.
Strict Control: Leaders monitor the work closely and maintain strict control.
Example:
Think of a military camp:
•The commander gives orders, and soldiers are expected to follow without
questioning.
•There’s no room for suggestions from the soldiers; their job is to execute the
orders.
Another example can be an old-fashioned assembly line factory:
•The factory owner decides everything – how work is done, who does what, and
when breaks happen.
•Workers simply do their assigned tasks and don’t have any input into how the
factory operates.
Pros:
•Quick decision-making.
•Clear responsibilities and authority.

Cons:
•Employees feel demotivated and have no personal growth.
•Lack of creativity as employees don’t contribute ideas.
2. Custodial Model – Security and Benefits
The custodial model focuses on giving employees financial security, job security, and
benefits to keep them satisfied. Instead of controlling employees through power, this
model provides them with benefits and rewards to increase loyalty and commitment.
The organization takes care of employees' needs, and in return, employees remain loyal
and content.
Key Features:
•Focus on employee welfare: The organization provides good salaries, benefits like
healthcare, and job security.
•Loyalty and dependency: Employees stay loyal because they feel secure, even though
they may not be highly motivated to work hard.
•Material rewards: Motivation comes from the financial rewards and job security
provided by the organization.
Example:
A large corporation like Google provides excellent benefits:
Google offers high salaries, healthcare, free food, and on-site gyms.
Employees feel comfortable and secure because of these benefits, but they might not be
highly motivated to work beyond expectations because their needs are already met.
Pros:
•High job security and employee satisfaction.
•Low employee turnover due to the attractive benefits.

Cons:
•Employees may become too comfortable and lack motivation to innovate or
improve.
•Can be expensive for the organization to maintain high levels of benefits.

3. Supportive Model – Encouragement and Motivation

In the supportive model, the organization focuses on supporting and encouraging
employees to achieve better performance. Instead of offering material rewards or
controlling through authority, managers motivate employees by creating a positive
and supportive work environment. The emphasis is on leadership and guidance.

Key Features:
Focus on leadership: Managers are leaders who support and guide employees rather
than simply managing them.
Employee involvement: Employees are encouraged to participate in decision-making
and take initiative.
Psychological motivation: Motivation comes from recognition, job satisfaction, and
personal growth.
Example:
Think of a company like Southwest Airlines:
Management at Southwest creates a friendly and encouraging work environment.
Flight attendants and pilots are trusted and empowered to make decisions, such as
how to interact with passengers to provide a better service.
In this model, employees work harder because they feel valued and appreciated, not
because of money or benefits but because of the positive culture.
Pros:
Higher motivation and engagement from employees.
Encourages creativity and initiative from employees.
Cons:
Requires strong, effective leadership to maintain a supportive environment.
May not be effective in all types of organizations, especially those needing strict
control.
4. Collegial Model – Teamwork and Partnership
The collegial model is based on the idea of partnership between employees and
managers. In this model, employees work as a team, and the focus is on teamwork
and shared responsibility. There is no strict hierarchy – employees and managers see
themselves as colleagues working together toward the same goals.

Key Features:
•Partnership between managers and employees: Managers are more like partners
than bosses.
•Shared responsibility: Both employees and managers take responsibility for the
success of the organization.
•Teamwork: Employees are encouraged to collaborate and work together as a team.

Example:
Imagine a hospital where doctors, nurses, and administrators work together as
partners:
•Doctors and nurses work as a team to provide patient care, and hospital
administrators support them by providing resources.
•Everyone takes responsibility for the outcome, and decisions are made together.
This teamwork-based approach makes employees feel responsible for the success of
the entire organization, leading to higher commitment and engagement.

Pros:
• Fosters a strong sense of responsibility and belonging among employees.
• Encourages collaboration and innovation.

Cons:
• Decision-making may be slower due to the need for collaboration.
• Difficult to implement in larger, more hierarchical organizations.
5. System Model – Interconnected Parts and Culture
The system model views the organization as a whole system, where every part (people,
departments, processes) is connected. The focus is on creating a positive organizational
culture that supports both the company’s and employees' needs.

Key Features:
Interconnected parts: The organization is seen as a system where every department
and individual is interconnected.
Focus on organizational culture: A strong culture is developed that aligns with the
values and goals of both the organization and employees.
Employee growth: Employees are motivated by opportunities for personal
development and satisfaction.
Example:
A company like Zappos is known for its strong culture:
Zappos focuses on creating a positive, values-driven work environment where
employees feel respected and valued.
Employees are encouraged to be themselves, develop personally, and contribute to the
organization in meaningful ways.
Pros:
1.High employee satisfaction: A healthy culture where employees feel connected and
valued.
2.Adaptable: The system can adjust to changes in the environment and meet new
challenges.
3.Emotional and social needs met: Employees feel their personal needs (like respect,
trust) are important.

Cons:
1.Requires effort to maintain: Building and maintaining a strong, positive culture
takes continuous effort.
2.May not suit large, bureaucratic organizations: Difficult to apply in very
structured or old-fashioned companies.
3.Complex: The system can be complex and harder to manage, especially in fast-paced
environments.
6. Contingency Model – Adaptation and Flexibility
The contingency model argues that there is no single best way to organize a
company. Instead, the best structure for an organization depends on various factors,
including the environment, size, goals, and the nature of the work. The model
focuses on flexibility and adapting the organizational structure to fit different
situations.

Key Features:
•No one-size-fits-all: The structure of an organization depends on the specific
situation and environment.
•Adaptability: Different situations call for different organizational structures.
•Flexibility: The organization adjusts its structure as needed to match the changing
environment.

Example:
A consulting firm might use a hierarchical structure for a big corporate client but a
flat structure for a start-up client, adjusting their management approach based on the
client’s needs.
Pros:
1.Flexible: Organizations can adapt their structure depending on the situation,
making them more effective.
2.Tailored solutions: The company adjusts its management style to fit the specific
needs of each department or team.
3.More efficient: Different strategies for different tasks can increase overall
productivity.

Cons:
1.Complex to manage: Constantly adjusting structures and strategies can be hard to
manage.
2.Inconsistent: Employees might get confused by frequent changes in the approach
or structure.
3.Requires evaluation: The organization must regularly assess its structure to ensure
it fits the current situation.
7. Boundaryless Organization – No Boundaries, Open Collaboration
The boundaryless model removes traditional boundaries within the organization and
with external partners. This model emphasizes open communication and flexibility,
allowing teams and departments to collaborate freely. It also relies on external
partnerships and outsourcing to enhance efficiency.

Key Features:
•No rigid boundaries: Teams and departments can collaborate across traditional
boundaries.
•External partnerships: The organization works with external companies,
freelancers, or other organizations to complete tasks.
•Open communication: Information flows freely across the organization, promoting
transparency and collaboration.

Example:
Think of Airbnb:
•Airbnb has no strict departmental boundaries, allowing teams across the world to
collaborate easily.
•They work with hosts and service providers globally, creating a network of
partnerships rather than a rigid hierarchical structure.
This open and flexible structure allows organizations to innovate faster and respond to
changes in the market more effectively.
Pros:
1.Open communication: Information flows freely across the company, leading to
quicker decision-making.
2.More innovation: By removing barriers, employees from different departments or
external partners can collaborate easily.
3.Flexible: The organization can adapt to changes quickly, making it more competitive.

Cons:
1.Hard to manage: Without clear boundaries, it can be difficult to maintain control.
2.Risk of confusion: Employees may get confused about their roles or responsibilities
when boundaries are unclear.
3.Reliance on external partners: Relying too much on outsourcing or external
collaboration can pose risks.
Thank you my dears for
Patience listening
Best wishes
Regards
Pranav Singh