ORGANISATIONAL BEHAVIOUR

2nd semester BBA

AS per university of mysore syllabus (SEP 2024-25)
By: Nikhath Bano
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Assistant professor

Christ college,

Mysore.

Module no :1 Fundamentals of organizational Behavior

Meaning-Definition-nature-scope and importance of OB, Inter disciplinary nature
of Ob, Contributing to OB-Principles of OB, Recent trends in OB.

Organizational behavior is the study of how people interact within groups. The
principles of the study of organizational behavior are applied primarily in
attempts to make businesses operate more effectively.
Organizational Behavior (OB) is the study of human behavior in organizational
settings, the interface between human behavior and the organization, and the
organization itself.
The study of organizational behavior includes areas of research dedicated to
improving job performance, increasing job satisfaction, promoting innovation,
and encouraging leadership and is a foundation of corporate human resources.
Organizational Behavior (OB) is the multidisciplinary study of the employee
interactions and the organizational processes that seek to create more
efficient and cohesive organizations.
Definitions of OB
According to L. M. Prasad, “Organisational behaviour can be defined as the
study and application of knowledge about human behaviour related to other
elements of an organisation such as structure, technology and social systems.
According to Stephen P Robbins - “Organisational behaviour is a field of study
that investigates the impact that individuals, groups and structure have on
behaviour within the organizations for the purpose of applying such knowledge
towards improving organizations effectiveness”.
According to Fred Luthans - “Organisational behaviour is directly concerned
with the understanding production and control of human behaviour in
organization”.
The following five elements are key to studying organizational behavior:
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 • People
• Structure
• Technology
• Social system
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• Environment
Understanding these elements and their dynamic interrelationships can help
business leaders achieve short and long-term goals for improving employee
productivity and success by informing strategies around training, ongoing
development, collaboration, and workforce processes.

The importance of organizational behavior

1. OB provides a road map to our lives in organizations
People bring to their work place their hopes and dreams as well as their fears
and frustrations. Much of the time, people in organizations may appear to be
acting quite rationally, doing their fair share of work, and doing about their tasks
in a civil manner. Suddenly, a few people appear distracted, their work slips, and
they even get withdrawn. Worse still, one may find someone taking advantage
of others to further his or her personal interest. Such a range of human
behaviors makes life in organizations perplexing. But those who know what to
look for and have some advance ideas about how to cope with pressures are
more likely to respond in ways that are functional, less stressful, and even
career-advancing. Therefore, OB need to map out organizational events so that
employee can function in a more secure and comfortable environment.
2) A Manager in a Business Establishment is concerned with Getting
Things Done Through Delegation
He or she is successful when he or she can motivate subordinates to work for
better results. OB will help the manager understand the basis of motivation and
what he or she should do to motivate subordinates.
3) The field of OB is useful for improving Cordial Industrial/Labour
Relations
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If an employee is slow in his/her work, or if his/her productivity is steadily
declining, it is not always because of a poor work environment. Often the
indifferent attitude of the boss makes the worker lazy. Similarly, reluctance of
the management to talk to union leaders about issues might provoke them to
give a strike call. In other words, relations between management and employees
are often strained for reasons which are personnel issues, not technical. Human
problems need to be tackled humanely. OB is very useful to understand the
cause of the problem, predict its course of action, and control its consequences.
The field of OB serves as the basis for human resource management.
 At its core, organizational behavior analyzes the effect of social and
environmental factors that affect the way employees or teams work. The way
people interact, communicate, and collaborate is key to an organization’s
success. By analyzing and understanding these parameters, you can leverage
organizational behavior to improve the effectiveness and efficiency of your
Page | 3 workforce. It can also help you achieve the following organizational and work
culture goals.
4) OB helps in motivating employees
OB helps manager to motivate the employees bringing a good organizational
performance automatically that leads to job satisfaction. It helps managers to
apply appropriate motivational tools and techniques in accordance with the
nature of individual employees.
5) OB helps effective utilization of human resources
OB helps managers to manage the people’s behaviour and the organization
effectively. It enables managers to inspire and motivates employees towards
high productivity and better results.
6) Better communication channels and protocols
Individual employees respond differently to various methods of communication
and behave in certain ways due to the structure of the workplace and the
organization’s culture, values, and goals. They tend to align better with
teammates and managers who mirror their behavioral
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strengths. As such, a keen grasp of organizational behavior can enable middle
management to build more effective teams and communicate better with
frontline employees.
7) Comfortable work environment
One of the key benefits of organizational behavioral analysis is the creation of a
suitable workplace environment for employees. With many ped steroids for sale
employees now working from home, it’s important for business leaders to create
a positive and empowering work setting to facilitate seamless team
communication and collaboration. As such, the study of organizational behavior
is essential for businesses looking to adapt to the disruptions and challenges
resulting from things like the pandemic or shifts in market forces.
8) Influencing management style
Savvy businesses use data to drive decision-making around the formation of
their corporate structure. Having management looking over employees’
shoulders at every turn indicates distrust, engenders micromanagement, and
leads to negative workplace culture.
By observing this trend through organizational behavioral analysis, many
enterprises are adopting a flatter, more linear (rather than hierarchical)
structure to provide employees with more freedom over how they perform their
tasks or whom they collaborate with
 9) Building a winning people strategy
Employees want to work for organizations with a positive culture and an
appealing work environment. They also want to get along with other employees
and management while working to achieve the organization’s goals and
objectives. The challenge is creating a workplace that fosters trust, open
Page | 4 communication, and seamless collaboration while simultaneously catering to the
unique needs of individual employees or certain functions. Creating a winning
people strategy requires business leaders to define how they interact with and
nurture the development of employees and work culture.
10) Influencing human resource strategies
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Business leaders can increase the value of their human capital by studying the
complex nature of employees and their interrelationships with others. The
insights that such a study provides can help drive human resources reforms and
strategies, particularly with recent findings showing a collapse of work-life
balance (due to more employees working from home). HR personnel can identify
struggling groups needing more support and apply motivational tools (uniquely
suited to the employees) to help them perform better by improving their
workplace experience.
11) Conflict resolution
Proactive business leaders nip problems in the bud before they develop into full-
scale confrontations. Measuring organizational behavior can help with
preventive conflict resolution by identifying where and why your employees are
having issues with fellow teammates and management. Behavioral dynamics
can help you understand the cause of a problem, predict its course, and head off
potential consequences before the issue escalates.
12) Wrapping Up
The core concept behind the study and application of organizational behavior is
the certainty that a happy and productive workforce results in a successful
organization. Drawing heavily on behavioral/social sciences and psychology,
organizational behavior takes a human-centric approach to facilitating a
performance-oriented workforce.
As such, a deep understanding of organizational behavior and why it’s important
can help business leaders increase the effectiveness of their workforce.

Principles of OB:
Organizational behavior (OB) is the study of how individuals, groups, and
structures affect behavior within an organization. Understanding OB can help
improve efficiency, performance, and employee satisfaction in a workplace. Here
are some key principles of organizational behavior:
1. Individual Behavior
  Motivation: Understanding what drives people to perform well in their
jobs, such as intrinsic and extrinsic rewards. Theories like Maslow's
Hierarchy of Needs, Herzberg's Two-Factor Theory, and McClelland's
Theory of Needs provide insights into motivation.
 Perception: How individuals interpret and make sense of their
Page | 5 environment. This can affect their behavior, decision-making, and
interactions within the organization.
 Learning: How individuals acquire knowledge and skills that influence
their behavior. The process of learning in organizations, such as training
and development programs, is critical to improving employee
performance.

2. Group Dynamics

 Teamwork and Collaboration: Group behavior can be influenced by

group dynamics, such as norms, roles, and communication within teams.
Effective teamwork leads to better decision-making and problem-solving.
 Conflict: Conflict is a natural part of group interaction. Understanding how
to manage and resolve conflicts constructively is essential for maintaining
a positive work environment.
 Leadership: Leadership styles (e.g., transformational, transactional,
autocratic, democratic) greatly impact group behavior. Leaders influence
motivation, job satisfaction, and overall performance in the workplace.

3. Organizational Culture

 Values and Norms: The shared beliefs, values, and norms within an
organization shape how employees behave. A strong organizational
culture can foster a positive work environment, while a weak or toxic
culture can lead to issues like low morale and high turnover.
 Socialization: The process by which new employees learn the
organization's culture and become integrated into the organization. Proper
socialization can lead to greater job satisfaction and organizational
commitment.

4. Communication

 Effective Communication: Clear, transparent communication is key to

organizational success. It affects decision-making, conflict resolution, and
overall employee engagement.
 Communication Networks: The flow of information within the
organization—formal and informal communication channels—can impact
productivity and the organization's ability to adapt to change.

5. Decision-Making

 Rational Decision-Making: Encouraging a rational, structured approach

to decision-making can reduce bias and improve outcomes. This involves
 gathering information, analyzing alternatives, and selecting the best
course of action.
 Group Decision-Making: When decisions are made collectively, it’s
important to manage group dynamics to avoid groupthink and ensure
diverse perspectives are considered.
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6. Power and Politics

 Power: In organizations, power refers to the ability of individuals or

groups to influence others. This can be formal (e.g., positional power) or
informal (e.g., personal power).
 Politics: Organizational politics refers to behaviors that are not directly
related to the official authority or formal structure but may influence
decision-making, resource allocation, and career advancement.

7. Organizational Structure

 Formal Structure: The way tasks, roles, and responsibilities are divided,
coordinated, and controlled within the organization. Structures can be
hierarchical, matrix-based, or flat.
 Flexibility: The ability of the organization to adapt to changes in its
external environment or internal processes. A flexible structure supports
innovation and responsiveness.

8. Change Management

 Adaptation to Change: Organizations must manage change effectively

to remain competitive. The principles of OB can help understand employee
reactions to change and develop strategies to ease transitions.
 Resistance to Change: Understanding why employees resist change
(fear of the unknown, loss of control, etc.) and implementing strategies to
manage resistance is crucial.

9. Job Satisfaction and Employee Well-being

 Work-Life Balance: Ensuring employees can manage work demands and

personal life is important for job satisfaction and retention.
 Employee Motivation and Engagement: High levels of engagement
lead to better performance and job satisfaction. It's important to provide
meaningful work, recognition, and opportunities for growth.

By applying these principles, organizations can improve their management

practices, enhance productivity, and create a positive working environment.

Inter-Disciplinary Nature of OB:

The interdisciplinary nature of Organizational Behavior (OB) refers to the
integration of knowledge, concepts, and theories from various disciplines to
 understand and analyze human behavior within organizations. OB draws upon
insights from psychology, sociology, anthropology, economics, political science,
and other fields to provide a holistic understanding of organizational dynamics.
Here’s a breakdown of how different disciplines contribute to OB:

Page | 7 1. Psychology

 Individual Behavior: Psychology helps explain individual behavior,

including motivation, perception, personality, learning, and emotional
intelligence. Theories such as Maslow's Hierarchy of Needs, Herzberg’s
Two-Factor Theory, and various personality models (e.g., the Big Five) are
rooted in psychology and help managers understand what drives people in
the workplace.
 Motivation and Job Satisfaction: Concepts of intrinsic and extrinsic
motivation come from psychological studies, and they play a key role in
improving employee satisfaction and performance.
 Cognitive Processes: Psychology helps to explore how individuals
process information, make decisions, and solve problems, which is critical
in understanding behavior at work.

2. Sociology

 Group Dynamics and Social Structure: Sociology contributes to

understanding how individuals interact in groups, the roles and norms that
develop within teams, and the power structures within organizations.
Theories of group behavior, social networks, and organizational culture are
influenced by sociology.
 Organizational Culture: Sociological theories of culture explain how
shared values, beliefs, and norms influence behavior within organizations.
The concept of organizational culture helps to understand how employees
align with the organization's goals, mission, and practices.
 Socialization: Sociology contributes to understanding how individuals are
socialized into organizational roles and learn about the expectations,
values, and behaviors associated with their work environment.

3. Anthropology

 Organizational Culture and Diversity: Anthropology provides insights

into how human beings form cultures, traditions, and customs. In OB, this
helps us understand the diversity within organizations, the evolution of
organizational culture, and how cultural differences impact communication
and behavior.
 Cross-Cultural Studies: The study of anthropology enables organizations
to manage multicultural teams effectively by understanding different
cultural values and norms, which is particularly important in global
organizations.
  Social Structures and Hierarchies: Anthropology also helps us
understand the social structures and hierarchies that exist within
organizations and how they impact power relations, decision-making, and
employee interaction.

4. Economics
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 Incentives and Decision Making: Economic principles, such as the
theory of incentives and rational choice theory, inform OB in
understanding how employees make decisions based on rewards and
resource allocation. This is particularly important in areas like
compensation, performance rewards, and motivation.
 Resource Allocation: OB incorporates economic theories to understand
how organizations allocate resources, including human resources, and how
organizational efficiency can be improved by optimizing resource use.
 Behavioral Economics: This field, which combines psychology and
economics, looks at how psychological factors affect economic decisions.
This is useful in understanding employee behavior, particularly in contexts
like decision-making, risk-taking, and fairness.

5. Political Science

 Power and Politics: Political science contributes to OB by providing

theories on power dynamics, leadership, and authority. Power, influence,
negotiation, and organizational politics are key concepts influenced by
political science.
 Conflict and Negotiation: Political science theory aids in understanding
conflict resolution, negotiation tactics, and how to manage internal politics
in organizations.
 Decision-Making and Governance: The political processes in
organizations—such as decision-making, governance, and policy formation
—are influenced by political science theories on power and institutional
behavior.

6. Management Theory

 Leadership and Organizational Behavior: The field of management

integrates principles of OB, especially in leadership, decision-making, and
organizational structure. Leadership theories (e.g., transformational and
transactional leadership) are essential for understanding how leaders
influence behavior in organizations.
 Strategic Management: Management principles help in understanding
how organizational behavior influences strategy and vice versa. Effective
organizational behavior leads to better strategy execution, innovation, and
performance.

7. Human Resource Management (HRM)

  Employee Motivation and Performance: HRM focuses on
understanding and managing human capital within organizations. OB
theories inform HR practices like recruitment, training, performance
appraisals, and employee development.
 Workplace Well-being: OB helps HR professionals understand how
Page | 9 factors like job satisfaction, work-life balance, and employee engagement
impact overall organizational health and productivity.

Conclusion
Organizational behavior is inherently interdisciplinary because it requires the
integration of diverse theories and approaches to understand the complexities of
human behavior in organizations. Each discipline provides valuable insights into
different aspects of behavior, from individual actions and motivations to group
dynamics, organizational culture, power, and politics. By borrowing from multiple
fields, OB can offer more comprehensive strategies to improve organizational
performance and employee well-being.

Contributing disciplines to organizational Behaviour

Organizational Behavior (OB) is an interdisciplinary field that draws from various
disciplines to understand and improve how people behave within organizations.
The key contributing disciplines include:
1. Psychology

 Focus: Individual behavior, motivation, perception, learning, personality,

emotions, and leadership.
 Contributions: Theories of motivation (Maslow, Herzberg), personality
traits (Big Five), emotional intelligence, and cognitive biases.

2. Sociology

 Focus: Social behavior, group dynamics, team structures, organizational

culture, and communication.
 Contributions: Group dynamics, organizational culture, socialization, and
power structures.

3. Anthropology

 Focus: Cultural influences on behavior, values, beliefs, and organizational

rituals.
 Contributions: Cross-cultural management, organizational culture, and
leadership styles in different societies.

4. Political Science

 Focus: Power, conflicts, negotiations, organizational politics, and

governance.
  Contributions: Power and influence in organizations, leadership styles, and
decision-making processes.

5. Economics

 Focus: Resource allocation, decision-making, incentives, and market forces

Page | 10 affecting organizations.
 Contributions: Reward systems, compensation strategies, cost-benefit
analysis, and organizational efficiency.

6. Social Psychology

 Focus: Interactions between individuals and groups, influence, and social

perception.
 Contributions: Teamwork, conflict resolution, communication, and attitude
change.

7. Industrial and Organizational (I/O) Psychology

 Focus: Employee selection, training, performance appraisal, and job

satisfaction.
 Contributions: Job analysis, employee motivation, workplace safety, and
stress management.

Each discipline contributes unique insights that help in managing people and
improving organizational effectiveness.

Recent trends in OB:

Recent Trends in Organizational Behavior (OB)
Organizational Behavior (OB) is constantly evolving due to changes in the
workplace, technology, and societal expectations. Here are some recent trends:
1. Remote & Hybrid Work

 Companies are adopting remote and hybrid work models post-

pandemic.
 Focus on virtual collaboration tools, flexible work arrangements, and
maintaining employee engagement.

2. Employee Well-being & Mental Health

 Increased emphasis on work-life balance, mental health support,

and wellness programs.
 Organizations are offering stress management training, counseling,
and wellness perks.

3. Diversity, Equity & Inclusion (DEI)

  Greater focus on gender diversity, racial inclusion, and equal
opportunities.
 Implementation of bias-free hiring, inclusive leadership training,
and diverse workplace policies.

Page | 11 4. Artificial Intelligence (AI) & Automation

 AI-driven recruitment, employee analytics, and performance

evaluations.
 Use of chatbots for HR support and AI-powered training programs.

5. Gig Economy & Freelance Work

 Shift toward contract-based, freelance, and gig work.

 Companies are adapting by hiring more independent professionals
for short-term projects.

6. Data-Driven Decision Making

 Use of HR analytics, people analytics, and predictive analytics to

make better workforce decisions.
 AI and big data are helping track productivity, engagement, and
employee sentiment.

7. Ethical & Sustainable Leadership

 Growing importance of corporate social responsibility (CSR) and

ethical decision-making.
 Focus on sustainable business practices and environmental
responsibility.

8. Agile & Adaptive Organizations

 Companies are adopting agile management styles for flexibility and

innovation.
 Encouraging cross-functional teams and rapid decision-making.

9. Employee Experience (EX) & Engagement

 Personalization of work experiences, career growth opportunities,

and feedback systems.
 Focus on creating a positive, purpose-driven workplace culture.

10. Learning & Development (L&D) Transformation

 Rise of microlearning, e-learning platforms, and AI-based

personalized learning.
  Companies investing in upskilling and reskilling employees for future
job roles.

Module no :02 INDIVIDUAL BEHAVIOUR

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Individual Behaviour- Factors influencing Individual behaviour-
Perception- Meaning, Factors influencing Perception, Perceptual process and
error.
Personality- Meaning-Determinents and traits of personality.
Attitude- Meaning, Factors and components of attitudes.

What is Individual Behavior?

Individual behavior refers to the actions, responses, reactions, and behaving
ways of the individual in a particular position. It is the combination of responses
to internal and external stimuli.
Each Individual/human behavior is different from others. Understanding human
behavior helps to know how particularly people respond to some situations and
express themselves.
There are diversified factors affecting individual behavior however they are
broadly classified into four categories.
• Personal biographical factors.
• Psychological factors.
• Environmental factors.
• Organizational factors.
1. Personal Biographical Factors
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Individual biographical factors are inherited in nature. These are inherited by
individuals from their parents. From the date they come to the earth they are
characterized by biographical factors. They are:
Sex: Sex or gender is an inherited characteristic that is determined by birth as
male or female. Found, males are emotionally stronger than women. Even
physically males are stronger. Traditionally, females are mainly involved in
household work and males are in work. But, this has changed men and women
equally involved in jobs.
Age: Age is the length of time that determines the time a person lived. The age
of an individual start to increase from the day he/she is born. At a young age,
people tend to be more creative and energetic and are curious to explore things.
 Education: By birth, people learn to speak, walk, behave, and respond to their
surroundings. Parents and other family members are the first educators of
people. From the parents, children learn the basic education, and morality, and
become socialized human beings. Abilities: It is the personal strength people
have. The inherited ability of individuals is greatly influenced by the health of
Page | 13 parents, nutrition, and the environment around them. Abilities can be inherited
or learned.
Marital Status: Married people seem more responsible towards family than
other unmarried. For them steady jobs become important and such employees
are expected to devote their best effort to the workplace.
2. Psychological Factors
Psychological factors are the learned characteristics of the individual. These are
the factors individuals have to learn from the environment and built concepts
about the world. Major psychological factors are:
Personality: Everyone’s personality is unique. Personality refers to the ways a
person thinks, feels, acts, and behaves and which are unique from others. The
unique nature of individuals is the psychological characteristics that they gained
from experience and knowledge.
Perception: Perception is the viewpoints of individuals around the world and the
interpretation of the things they see. It is the psychological process of seeing
objects and constructing conclusions. Two persons’ perceptions are different
their seeing way of the world probably cannot be the same.
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Attitudes: Attitude is the belief system that directs our thoughts, feelings, and
actions. Attitude can be positive or negative as so we differently respond to
people, situations, and ideas.
Values: Values are the moral belief and structures of people that guide their
actions. Values consist of an individual’s philosophy as to what is good, right, or
desirable and they contain moral flavor.
Learning: Humans are learning beings. From birth to death people never stops
learning. It takes place during interaction with the environment and relatively
permanently changes the thinking, behavior, and actions of people.
3. Environmental Factors
Environmental factors are inevitable factors that have a greater influence on
individual behavior. Such as:
Economic Conditions: A person with a stable job and a good salary will
definitely seem fit and clean than a person who doesn’t have one. When there
are more employment opportunities the economic conditions of people seem to
be good and living standards also improve. Political Conditions: Politics have a
great influence on organizations, people, and the whole nation. People are
knowingly and unknowingly affected by the political system. A stable political
system is required to operate stables jobs opportunities, provide freedom to
people, and make different choices as they want.
 Cultural Values: Every society’s cultural values are different. Whenever a
person shifts to the next society he must understand and adapt their cultural
ties. Similarly, different organizations have different cultures that employees
must assume.
4. Organizational Factors
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In organizational settings, there are also different factors that affect individuals
i.e. employees’ behavior working there. Such as:
Physical Facilities: Physical facilities of an organization refer to the physical
condition consisting of office furnishing, the comfort of working, etc. The
physical environment of the organization positively influences employees – they
feel physically safe working there. Organizational Structure: It refers to how
an organization is structured, and how different roles, responsibilities, and duties
are divided. A sound organizational structure clearly defines the how-to
functions freeing employees’ from roles conflicts and achieving greater
efficiency.
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Leadership Styles: Today managers are leaders also. Being a manager he
should have to influence and encourage his employees for better performance.
In an encouraging working environment, employees tend to stay longer and
reduce turnover.
Reward System: It is agreed that individual behavior is goal-directed.
Employees feel motivated, stay longer, and contribute their best effort in an
organization that has a fair pay system.
Organisation system
An Organizing System is a collection of resources arranged in ways that enable
people or computational agents to interact with them. An Organizing System is
an abstract characterization of how some collection of resources is described
and arranged to enable human or computational agents to interact with the
resources.
Organisational Resources
Organizational resources consist of the concrete materials and tangible assets
that support programs, practice improvements, and service delivery. They
encompass adequate and stable funding, staffing, facilities and equipment,
technology, informational resources, and program materials.
PERSONALITY
MEANING AND DEFINITION OF PERSONALITY
The word personality is derived from Latin word called “persona” means a
“mask” or “personare” means “to speak through”.
Personality is the characteristics, qualities, skills, competencies and outward
appearances of individuals. In other words, personality is a way to respond
people, situations, and things that are consistent (more or less). In short,
Personality is the psychological factor that influences individual behavior.
 According to Gordon Allport – “personality is the set of traits and behaviors
that characterize an individual”.
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According to Stephen Robbins – “Personality is a dynamic and organized set of
Page | 15 characteristics possessed by a person that uniquely influences his or her
cognitions, motivations, and behavior in various situations”.
According to Lawrence Ervin – “Personality is the relatively stable set of
psychological attributes that distinguish one person from another”.
According to R B Cattel – “Personality is that which permits a prediction of what
a person will do in a given situation”.
DETERMINANTS OF PERSONALITY
Different theories propose different factors that determine an individual
personality. The most popular research work done by Freud deals with the
identification of Self-concept. However the major determinants of personality
are:
Determinants of Personality
The determinants of personality can be grouped in five broad categories:
1. Biological Factors
2. Cultural Factors
3. Family Factors
4. Social Factors
5. Situational Factors
1. Biological Factors
The study of the biological contributions to personality may be studied under
three heads: Heredity
Heredity refers to those factors that were determined at conception. Physical
stature, facial attractiveness, sex, temperament, muscle composition and
reflexes, energy level, and biological rhythms are characteristics that are
considered to be inherent from one’s parents. The heredity approach argues that
the ultimate explanation of an individual’s personality is the molecular structure
of the genes, located in the chromosomes.
Brain
The second biological approach is to concentrate on the role that the brain plays
in personality. The psychologists are unable to prove empirically the contribution
of the human brain in influencing personality.
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 Preliminary results from the electrical stimulation of the brain (ESB) research give
an indication that a better understanding of human personality and behaviour
might come from the study of the brain.
Biofeedback

Page | 16 Until recently, physiologists and psychologists felt that certain biological
functions such as brainwave patterns, gastric and hormonal secretions, and
fluctuations in blood pressure and skin temperature were beyond conscious
control.
Now some scientists believe that these involuntary functions can be consciously
controlled through biofeedback techniques. In BFT, the individual learns the
internal rhythms of a particular body process through electronic signals that are
feedback from equipment that is wired to the body.
Physical Features
A vital ingredient of the personality, an individual’s external appearance, is
biologically determined. The fact that a person is tall or short, fat or skinny,
black or white will influence the person’s effect on others and this in turn, will
affect the self-concept.
2. Cultural Factors
Among the factors that influence personality formation is the culture in which we
are raised, early conditioning, norms prevailing within the family, friends and
social groups and other miscellaneous experiences that impact us.
The culture largely determines attitudes towards independence, aggression,
competition, cooperation and a host of other human responses.
3. Family Factors
Whereas the culture generally prescribes and limits what a person can be taught,
it is the family, and later the social group, which selects, interprets and
dispenses the culture. Thus, the family probably has the most significant impact
on early personality development.
A substantial amount of empirical evidence indicates that the overall home
environment created by the parents, in addition to their direct influence, is
critical to personality development.
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The parents play an especially important part in the identification process, which
is important to the person’s early development.
4. Social Factors
There is increasing recognition given to the role of other relevant persons, groups
and especially organisations, which greatly influence an individual’s personality.
This is commonly called the socialization process.
Socialization involves the process by which a person acquires, from the
enormously wide range of behavioral potentialities that are open to him or her,
those that are ultimately synthesized and absorbed.
 Socialization starts with the initial contact between a mother and her new infant.
After infancy, other members of the immediate family – father, brothers, sisters
and close relatives or friends, then the social group: peers, school friends and
members of the work group – play influential roles.
Socialization process is especially relevant to organisational behaviour because
Page | 17 the process is not confined to early childhood, taking place rather throughout
one’s life. In particular, the evidence is accumulating that socialization may be
one of the best explanations for why employees behave the way they do in
today’s organisations.
4. Situational Factors
Human personality is also influenced by situational factors. The effect of the
environment is quite strong. Knowledge, skill and language are obviously
acquired and represent important modifications of behavior.
Personality Characteristics
Managers should learn as much as possible about personality in order to
understand their employees. Hundreds of personality characteristics have been
identified.
7 personality characteristics that influence individual are:
1. Locus of Control
2. Self-Efficacy
3. Self-Esteem
4. Self-Monitoring
5. Positive/Negative Affect
6. Risk-Taking
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Locus of Control
The degree to which individuals perceive control over a situation being internal
or external is called locus of control.
Locus of control refers to the range of beliefs that individuals hold in terms of
being controlled by self (internal locus) or controlled by others or the situation
(external locus). Self-Efficacy
Generalized self-efficacy refers to a belief about one’s own ability to deal with
events and challenges.
High self-efficacy results in greater confidence in one’s job-related abilities to
function effectively on the job. Success in previous situations leads to increased
self-efficacy for present and future challenges.
Self-Esteem
 An individual’s self-worth is referred to as self-esteem. Individuals with high self-
esteem have positive feelings about themselves.
Low self-esteem individuals are strongly affected by what others think of them,
and view themselves negatively.

Page | 18 Self-Monitoring
The extent to which people base their behavior on cues from other people and
situations is self-monitoring. Individuals high in self-monitoring pay attention
to what behavior is appropriate in certain situations by watching others and
behaving accordingly. Low self-monitoring individuals prefer that their
behavior reflects their attitudes, and are not as flexible in adapting their
behavior to situational cues.
Positive/Negative Affect
Individuals exhibit attitudes about situations in a positive or negative fashion. An
individual’s tendency to accentuate the positive aspects of situations is referred
to as positive effect, while those accentuating less optimistic views are referred
to as having negative affect. Employees with positive affect are absent from
work less often. Negative affect individuals report higher levels of job stress.
14
Risk-Taking
People differ in their willingness to take chances. High-risk-taking managers
made more rapid decisions and used less information in making their choices
than low risk-taking managers.
Personality Traits Influencing Organizational Behavior
(1) Authoritarianism
(2) Bureaucratic Personality
(3) Machiavellianism
(4) Introversion and Extroversion
(5) Problem Solving Style
(6) Achievement Orientation
(7) Locus of Control
(8) Self Esteem
(9) Self Monitoring
(10) Risk Taking
(11) ‘Type A’ and ‘Type B’ Personality
(12) Myers-Briggs Type Indicator (MBTI).
1. Authoritarianism:
 Authoritarianism as a concept was developed by the psychologist Adorno during
World War II to measure susceptibility to autocratic, fascistic or antidemocratic
appeals. After that the concept was extended to the human personality.
According to Adorno, “This concept refers to a belief that there should be status
and power differences among people in organisations.” Authoritarians tend to
Page | 19 place high moral value on their beliefs and are strongly oriented towards
conformity of rules and regulations. They naturally prefer stable and structured
work environments which are governed by clean rules and procedures.
Further, they believe obedience and respect for authority and blind acceptance
of authority. These people are generally conservatives concerned with
toughness and power, are close
15
minded and generally less educated. But because of their belief in acceptance of
authority they make good followers, work better under directive supervision and
are more productive within authoritarian organisational structure.
2. Bureaucratic Personality:
The personality of a bureaucratic person is based upon respect for organisational
rules and regulations. He is different from an authoritarian person in respect that
his acceptance of authority is not total and blind. A person who is bureaucratic
in nature values subordination, conformity to rules, impersonal and formal
relationships. These people become better supervisors when the type of work is
routine, repetitive and proceduralised because these people are not innovative,
they do not like taking risks and feel more at ease in following established
directions.
3. Machiavellianism:
This personality trait of Machiavellianism also known as Mach is named after
Niccolo Machiavelli, who wrote in the 16th century on how to gain and use
power.
The characteristics of high MACH employers are as follows:
(i) A Mach man is pragmatic, maintains emotional distance and believes that
ends can justify means.
(ii) A high Mach man manipulates more, wins more, are persuaded less and
persuade others more than the low machs.
(iii) High Mach people flourish when they interact face to face with others rather
than indirectly.
(iv) These people are successful when the situation has a minimum number of
rules and regulations.
(v) High Mach man has high self confidence and high self esteem. They are cool
and calculating and have no hesitation using others or taking advantage of
others in order to serve their own goals.
(vi) They are not easily swayed by a sense of friendship, trust or loyalty. They are
specially successful in exploiting structured situations and vulnerable people.
 16
We cannot conclude that whether high machs make good employees or not. The
answer will depend upon the type of the job and whether moral and ethical
values are considered in evaluating the performance of a person.

Page | 20 4. Introversion and Extroversion:

These two terms are generally associated with the interpersonal behaviour of an
individual and his sociability. Extroverts are gregarious and sociable individuals
while introverts are shy, quiet and retiring. It has been observed that introverts
and extroverts people have different career orientations and require different
organisational environment to maximize performance. Extroverts are more
suitable for positions that require considerable interaction with others that is
why managerial positions are dominated by extroverts.
Thus, we can say that to be an extrovert is a managerial trait to be a successful
manager. On the other hand, introvert people are more inclined to excel at
tastes that require thought and analytical skill. An extreme introvert works best
alone in a quiet office without external interruption or influence.
5. Problem Solving Style:
Individuals have their own style of solving their problems and making their
decisions and this style of their affects their personality in certain ways. There
are four problem solving styles based upon Don Hellriegll, John W. Slocum and
Richard W. Woodman “organisational behaviour”.
(i) Sensation Feeling Style:
The people who have the sensation feeling style are dependable, friendly, social
and they approach facts with human concerns. These people are pragmatic,
methodical and like jobs which involve human contract and public relations.
Some suitable areas of jobs for these people are teaching, customer relations,
social workers and marketing.
(ii) Sensation Thinking Style:
People with sensation thinking style are practical, logical, decisive and sensitive
to details. These people prefer bureaucratic type organisations. They are not
highly suitable for jobs requiring interpersonal relations. But these people are
more skilled in technical jobs e.g. production, accounting, engineering and
computers.
(iii) Intuition Feeling style:
17
The persons with intuition feeling style are enthusiastic, people oriented,
charismatic and helpful. The professions which are suited to this style are public
relations, advertising, politics and personnel.
(iv) Intuition Thinking Style:
 These people are very creative, energetic, ingenious and like jobs which are
challenging in terms of design and analysis such as system design, law, research
and development, top management and so on.
6. Achievement Orientation:

Page | 21 Achievement orientation or a high need to achieve is a personality trait which

varies among different types of people and can be used to predict certain
behaviour. The people with very high achievement orientation strive to do things
in a better way. They want to feel that their success or failure is due to their own
actions. These people do not like to perform easy tasks where there is no
challenge or tasks with very high amount of risk as the failure rate is more.
These people like to do the acts with moderate difficulties, so that they can have
a sense of achievement also and on the other hand the failure rate is also not
very high. Or in other words, achievers will like to do the jobs where the
outcome is directly attributed to their efforts and chances of success are so-so.
The high achievers will do better in sports, management and sales where there
is moderate difficulty, rapid performance feedback and direct relationship
between effort and reward.
7. Locus of Control:
Locus of control refers to an individual’s belief that events are either within one’s
control (Internal Locus of Control) or are determined by forces beyond one’s
control. Some people believe that they are the masters of their own fate. Other
people see themselves as pawns of fate, believing that whatever happens to
them in their lives is due to their luck or fate. The first type is labeled as
internals and the latter has been called externals. A PERSON’S PERCEPTION OF
THE SOURCE OF HIS OR HER FATE IS TERMED LOCUS OF CONTROL.
A large amount of research has consistently shown the following characteristics
of the internals and externals.
Internal Locus of Control:
18
(i) A person with a strong internal locus of control has more control over his own
behavior. He believes that he controls events concerning his own life and his
internal traits determine what happens in a given situation. He believes that he
is the master of his own density.
(ii) These people are more active in seeking more information to make decisions.
They are better at retaining the information and are less satisfied with the
amount of information they possess.
(iii) Internals are more active socially.
(iv) Internals prefer skill achievement outcomes.
(v) Internals are more likely to use personally persuasive rewards and power
bases and less likely to use coercion.
(vi)These people are more independent and less susceptible to influence of
others. (vii) The internals prefer participative management.
 (viii) Research has shown that internally oriented people hold jobs of higher
Status, advance more rapidly in their careers.
(ix) Internals take more responsibility for their health and have better health
habits. As a result their incidents of sickness and of absenteeism are lower.

Page | 22 External Locus of Control:

(i) People who rate high in externality are less satisfied with their jobs, have
higher absenteeism rates, are more alienated from the work setting and are less
involved on jobs than are internals. They generally prefer directive
management.
(ii) Unlike the internals, these people prefer chance oriented awards.
(iii) A person with a strong ‘external locus of control’ feels that outside forces are
affecting the events in his life and he is at the mercy of destiny, chance or other
people. He believes that everything will happen by the will of God and nothing
or nobody can stop it. External locus of control refer
19
(iv) Unlike, the internals, the externals are more interested in job security and
not in advancement of careers.
(v) Whereas the internals prefer intrinsic rewards e.g. feeling of and he is at the
mercy of achievement, externals are more interested in extrinsic awards,
destiny, chance or other people. From the above mentioned traits of internals
and controls it can be concluded that internals would be better on sophisticated
tasks, which include most managerial and professional jobs or any other jobs
which require complex information processing and learning. In addition, they are
suited to jobs requiring initiative and independence of action. As against this,
externals would do well on jobs that are well structured and routine and in which
success depends heavily on coupling with the directions given by others.
8. Self Esteem:
“Self Esteem refers to the feeling of like or dislike for oneself.” “Self Esteem is
the degree of respect a person has for himself.” This trait varies from person to
person as people differ in the degree to which they like or dislike each other. The
research on self esteem offers some interesting insights into organisation
behaviour.
9. Self Monitoring:
“Self monitoring is a personality trait that measures an individual’s ability to
adjust his or her behaviour to external situational factors”. Self monitoring is a
personality trait which has recently received attention. The research on self
monitoring is in infancy, so predictions must be guarded. As self monitoring
refers to the individual’s ability to adjust his or her behaviour to external factors,
individuals with high self monitoring can show considerable adaptability in
adjusting their behaviour to external, situational factors.
10. Risk Taking:
 The propensity of people to assume risks or avoid risks varies from person to
person depending upon the willingness of the people to take chances. This
human trait will affect the decision making capability of a manager. This
individual personality trait will determine how long will it take a person to take a
decision or how much information will be needed before he takes a decision.
Page | 23 11. ‘Type A’ and ‘Type B’ Personality:

People who are impatient, aggressive and highly competitive are termed as ‘Type
A’ personality. But those who are easy going, laid back and non-competitive are
termed as ‘Type B’
20
personality. Type ‘A’ people tend to be very productive as they work very hard.
Their negative side is that they are very impatient, good team players, more
irritable and have poor judgment. Type ‘B’ people do better on complex tasks
involving judgment and accuracy rather than speed and hard work.
Despite Type ‘A’s hard work, the Type ‘B’ people are the ones who appear to
make it to the top. Great sales persons are usually Type A’s while senior
executives are generally Type B’s. The reason is that promotions in corporate
and professional organisations usually go to those “who are wise rather than to
those who are merely hasty, to those who are tactful, rather than to those who
are hostile and to those who are creative rather than to those who are merely
agile in competitive stride.”
12. Myers-Briggs Type Indicator (MBTI):
The personality theory proposed by Carl Jung identified the way people preferred
to perceive their environment. Almost Twenty years later, Briggs and Myers
developed the Myers – Briggs type indicator (MBTI) a personality test that
measured each of the traits in Carl Jung’s model. MBTI is in-fact, one of the most
widely used personality tests. It is used by many organisations to select people
for a particular position.
It measures how people focus their attention (extrovert or introvert), collect
information (sensing or intuition), process the same (thinking or feeling) and
finally direct themselves to the other world (judging or perceiving) MBTI then
combines the four classifications into 16 personality types.
The alphabet (E) denotes extrovert, (I) stands for introvert, (S) for sensing, (N) for
institution, (T) for thinking, (F) is feeling, (J) judging and (P) perceiving. For
example if we say marketing people tend to be ESTJ, this means that they are
extrovert, sensing, thinking and judging types. MBTI as a test of personality type
is so popular, that many organisations encourage their employees to reveal their
four letter type so that others in the organisation can better understand their
personality.
From the above mentioned personality traits, it becomes very clear that
understanding of personality is of immense help in the selection of right lands of
people for different jobs. Analysis of an individual’s personality wills reveals his
strong and weak points. A person may be unfit for one job but may be fit for
another because job requirements may be different,
 21
Understanding the personality will also help in designing the training
programmes for the personnel in the organisation.
Perception is an intellectual process of transforming sensory stimuli to
Page | 24 meaningful information. It is the process of interpreting something that we see
or hear in our mind and use it later to judge and give a verdict on a situation,
person, group etc. Perception is the conscious reception, selection,
processing and interpretation of information by our brain via all
senses. Perception is also used to describe what is perceived. Perception may be
defined as “a cognitive process by which people attend to incoming stimuli,
organize and interpret such stimuli into behaviour.”
Perception can also be defined as “a process by which individuals organize and
interpret their sensory impressions in order to give meaning to their
environment”.
According to Joseph Reitz; “Perception includes all those processes by which an
individual receives information about his environment — seeing, hearing,
feeling, tasting and smelling.”
According to B. V. H. Gilmer, “Perception is the process of becoming aware of
situations, of adding meaningful associations to sensations.”
Uday Pareek said perception can be defined as “the process of receiving,
selecting, organizing, interpreting, checking, and reacting to sensory stimuli or
data.”
Factors Influencing the Perceptual Set:
(a) Characteristics of the Perceiver
(b) Characteristics of the Perceived
(c) Characteristics of the Situation.
A. Characteristics of the Perceiver:
When a person looks at a target and attempts to interpreter what he
sees, his interpretation is greatly influenced by his personal
characteristics which are discussed as follows:
22
1. Needs and Motives:
Our need pattern play an important part in how we perceive things. A need is a
feeling of discomfort or tension when one things he is missing something or
requires something. Therefore, unsatisfied needs or motives stimulate
individuals and may exert a strong influence on their perception. When people
are not able to satisfy their needs they are engaged in wishful thinking which is
a way to satisfy their needs not in the real world but imaginary world. In such
cases, people will perceive only those items which suit their wishful thinking.
Motives also influence the perception of people. People who are devious are
prone to see others as also devious.
 2. Self Concept:
Self concept indicates how we perceive ourselves which then influences how we
perceive others and the situation we are in. The more we understand ourselves,
the more we are able to perceive others accurately. For example, secure people
tend to see others as warm and friendly. Less secure people often find fault with
Page | 25 others. Perceiving ourselves accurately and enhancing our-self concept are
factors that enhance accurate perception.
3. Past Experience:
Our perceptions are often guided by our past experiences and what we expect to
see. A person’s past experiences mould the way he perceives the current
situation. If a person has been betrayed by a couple of friends in the past, he
would tend to distrust any new friendship that he might be in the process of
developing.
4. Current Psychological State:
The psychological and emotional states of an individual are likely to influence
how things are perceived. If a person is depressed, he is likely to perceive the
same situation differently than if he is elated. Similarly, if a person is scared out
of wits by seeing a snake in the garden, she is likely to perceive a rope under
the bed as a snake.
5. Beliefs:
A person’s beliefs influence his perception to a great extent. Thus, a fact is
conceived not on what it is but what a person believes it to be. The individual
normally censors stimulus inputs to avoid disturbance of his existing beliefs.
23
6. Expectations:
Expectations affect the perception of a person. Expectations are related with the
state of anticipation of particular behaviour from a person. For example, a
technical manager will expect that the non- technical people will be ignorant
about the technical features of the product.
7. Situation:
Elements in the environment surrounding an individual like time, location, light,
heat etc., influence his perception. The context in which a person sees the
objects or events is very important.
8. Cultural Upbringing:
A person’s ethics, values and his cultural upbringing also play an important role
in his perception about others. It is difficult to perceive the personality of a
person raised in another culture because our judgement is based upon our own
values.
B. Characteristics of the Perceived:
Characteristics of the person who is being observed can affect what is perceived.
Though, it may go against logic and objectivity, but it cannot be denied that our
 perceptions about others are influenced by their physical characteristics such as
appearances, age, gender, manner of communication as well as personality
traits and other forms of behaviour. For example, loud people are more likely to
be noticed in a group than are quite ones. So too are extremely attractive or
extremely ugly individuals.
Page | 26 Persons, objects or events that are similar to each other tend to be grouped
together. People dressed in business suits are generally thought to be
professionals, while employees dressed in ordinary work clothes are assumed to
be lower level employees.
Manner of communication, both verbal and non-verbal, affect our perception
about others. For example, the choice of words and precision of language can
form impressions about the education and sophistication of the person. The tone
of voice indicates the mood of the person. The depth of conversation and choice
of topics provide clues of people’s intelligence. The body language or expressive
behaviour such as how a person sits and the movement of his eyes or a smile
can indicate whether he is nervous or self confident.
24
The status or occupation of a person also influences the perception. We tend to
behave in a more respectful way when we are introduced to the principal of a
school in which our child is studying, judge of the high court or Supreme Court
or a famous cricket player. Sometimes our perception of a person tends to be;
biased, depending upon the description given to us by other persons. When we
meet a person who is described to us as warm and friendly, we treat him
differently as compared to meeting a person who is known to be cold &
calculating.
C. Characteristics of the Situation:
The context in which we see objects or events is very important. The surrounding
environment and the elements present in it influence our perception while
perceiving a particular situation or event, its physical, social and organisational
setting can also influence the perception. For example, if you meet a person for
the first time and he is with a person whom you respect and admire, you will
create a favourable image about him in your mind as compared to a situation in
which you see him with another person whom you intensely dislike. Of course,
the initial impressions may change with the passage of time, but the saying that
“First impression is the last impression” is very valued.
Location of a given event is also very important factor in determining the
behaviour. For example, a conversation with the boss taking place in a casual
reception area may be perceived differently than when taking place in the
boss’s office with the door closed. Organisational setting also affects the
behaviour of the people. An organisation setting where people are given an
opportunity to interact in a friendly and sociable work situation, they become
more trustworthy and less defensive.
Perceptual Process
Perceptual process are the different stages of perception we go through. The
different stages are −
 • Receiving
• Selecting
• Organizing
• Interpreting
Page | 27
25
Receiving
Receiving is the first and most important stage in the process of perception. It is
the initial stage in which a person collects all information and receives the
information through the sense organs.
Selecting
Selecting is the second stage in the process. Here a person doesn’t receive the
data randomly but selectively. A person selects some information out of all in
accordance with his interest or needs. The selection of data is dominated by
various external and internal factors. • External factors −The factors that
influence the perception of an individual externally are intensity, size, contrast,
movement, repetition, familiarity, and novelty.
• Internal factors −The factors that influence the perception of an individual
internally are psychological requirements, learning, background, experience,
self-acceptance, and interest.
Organizing
Keeping things in order or say in a synchronized way is organizing. In order to
make sense of the data received, it is important to organize them.
We can organize the data by −
• Grouping them on the basis of their similarity, proximity, closure, continuity. •
Establishing a figure ground is the basic process in perception. Here by figure we
mean what is kept as main focus and by ground we mean background stimuli,
which are not given attention.
• Perceptual constancy that is the tendency to stabilize perception so that
contextual changes don’t affect them.
Interpreting
Finally, we have the process of interpreting which means forming an idea about a
particular object depending upon the need or interest. Interpretation means that
the information we have sensed and organized, is finally given a meaning by
turning it into something that can be categorized. It includes stereotyping, halo
effect etc.
Errors in Perception
There are some errors in perception;
26
 • Illusion.
• Hallucination.
• Halo Effect.
• Stereotyping.
Page | 28
• Similarity.
• Horn Effect.
• Contrast.
Illusion
The illusion is a false perception. Here the person will mistake a stimulus and
perceive it wrongly.
For example, in the dark, a rope is mistaken for a snake or vice versa. The voice
of an unknown person is mistaken as a friend’s voice. A person standing at a
distance who is not known may be perceived as a known person.
Hallucination
Sometimes we come across instances where the individual perceives some
stimulus, even when it is not present.
This phenomenon is known as a hallucination. The person may see an object,
person, etc. or he may listen to some voice though there are no objects and
sounds in reality.
Selective Perception
Selective perception means the situation when people selectively interpret what
they see on the basis of their interests, background, experience, and attitudes.
It means any characteristics that make a person, object, or event stand out will
increase the probability that it will be perceived.
Because it is impossible for us to assimilate everything we see, only certain
stimuli can be taken in.
Halo Effect
27
The individual is evaluated on the basis of perceived positive quality, feature, or
trait. A halo effect operates when we draw a general impression about an
individual based on a single characteristic, such as intelligence, sociability, or
appearance.
In other words, this is the tendency to rate a man uniformly high or low in other
traits if he is extraordinarily high or low in one particular trait: If a worker has
few absences, his supervisor might give him a high rating in all other areas of
work.
Stereotyping
 People usually can fall into at least one general category based on physical or
behavioral traits then they will be evaluated. When we judge someone on the
basis of our perception of the group to which he or she belongs, we are using the
shortcut called stereotyping.
For example, a boss might assume that a worker from a Middle East country is
Page | 29 lazy and cannot meet performance objectives, even if the worker tried his best.

Similarity
Often, people tend to seek out and rate those who are similar to themselves
more positively. This tendency to approve of similarity may cause evaluators to
give better ratings to employees who exhibit the same interests, work methods,
points of view, or standards.
Horn Effect
When the individual is completely evaluated based on a negative quality or
feature perceived, these results in an overall lower rating than an acceptable
rate.
He is not formally dressed up in the office. That’s why he may be casual at work
too.
Contrast
The tendency to rate people relative to other people rather than to the individual
performance he or she is doing. Rather will, evaluate an employee by comparing
that employee’s performance with other employees.

Attitude: Meaning of Attitude

Attitude is a psychological tendency that reflects a person's evaluative

judgment (positive or negative) about people, objects, events, or situations. It
influences behavior and decision-making in personal and professional life.
Factors Influencing Attitude

1. Personal Experience – Direct experiences shape attitudes (e.g., a bad

workplace experience can lead to a negative attitude toward similar jobs).
2. Social Influence – Family, friends, culture, and peer groups impact
attitudes.
3. Education & Knowledge – Awareness and exposure to new ideas can
modify attitudes.
4. Emotional Factors – Feelings and emotions significantly shape attitudes
(e.g., fear, love, or excitement).
5. Situational Factors – Specific circumstances may alter attitudes
temporarily or permanently.
 Components of Attitude (ABC Model)

1. Affective Component (Feelings) – Emotional reactions or feelings

toward a subject.

o Example: "I love my job."

Page | 30
2. Behavioral Component (Actions) – How attitude influences behavior.

o Example: "I work hard because I enjoy my job."

3. Cognitive Component (Beliefs & Thoughts) – Personal beliefs or

knowledge about something.

o Example: "Working in this company will enhance my career."

Attitudes play a key role in decision-making, workplace behavior, and

social interactions.
 MODULE NO : 03 GROUP & Team Dynamics

Group Dynamics: Meaning,Types of group,Development of Group-

Stages of Group Development,Determinents of Group Behaviour.
Group Dynamics refers to the behavioral and psychological processes
Page | 1 that occur within a social group or between groups. It involves how
individuals interact, communicate, and work together within a group
setting, and how group structure and processes influence members'
behavior.

Meaning of Group Dynamics

Group dynamics is the study of:

How people form groups.

How they behave and interact within these groups.

How the group as a whole develops and functions.

The influence the group has on individual members and vice versa.

Understanding group dynamics is essential in organizational behavior,

team development, decision-making, leadership, conflict resolution, and
improving group performance.

Types of Groups

Groups can be classified in several ways depending on purpose, structure,

and formation:

1. Formal Groups

Created by an organization to achieve specific objectives.Have

defined roles and responsibilities.

Examples: Departments, committees, task forces.

2. Informal Groups

Naturally formed based on personal relationships or common

interests.

Not officially sanctioned by the organization.

Examples: Friends in the workplace, lunch groups.

 3. Primary Groups

Small, close-knit groups with deep emotional connections.

Long-term and involve face-to-face interaction.

Page | 2
Examples: Family, close friends.

4. Secondary Groups

Larger and more impersonal.

Formed to achieve a specific goal or task.Interaction is more formal

and task-oriented.

Examples: Work teams, political parties.

5. Command Groups

Formed by the organization’s structure.Consist of a manager and

subordinates.

Example: A sales manager and their sales team.

6. Task Groups

Created to accomplish a specific task.Temporary or permanent

depending on the assignment.

Example: A project team for launching a new product.

7. Interest Groups

People who come together to attain a common interest or goal.Not

necessarily part of an organization.

Example: Environmental advocacy groups.

8. Reference Groups

Groups that individuals use as a standard for evaluating themselves

and their own behavior,Can influence attitudes and self-image.

Example: Peer groups, celebrities.

Development of group:Development of a Group

 The development of a group typically follows a series of stages that reflect
how group members interact, form relationships, and progress toward
achieving their goals. The most well-known model is Tuckman’s Stages
of Group Development, proposed by psychologist Bruce Tuckman in
1965.
Page | 3

Tuckman’s 5 Stages of Group Development

1. Forming:

Description: The group is just coming together.

Characteristics:

Members are polite and reserved.

Roles and responsibilities are unclear.

There is a strong dependence on the leader for guidance.

Focus is on orientation and getting to know each other.

2. Storming

Description: Conflicts and competition emerge.

Characteristics:

Disagreements about goals, roles, or procedures.

Power struggles may occur.Resistance to control and

authority.

Group performance may temporarily decline.

3. Norming:

Description: Group begins to establish norms and harmony.

Characteristics:

Conflicts are resolved.

Cohesion and cooperation increase.

Roles and responsibilities become clear.

Group identity strengthens.

 4. Performing

Description: The group reaches optimal functioning.

Characteristics:
Page | 4
High productivity and collaboration.

Clear understanding of goals.Flexible, supportive, and

interdependent roles.

Group is capable of making decisions and solving problems

effectively.

5. Adjourning (added later by Tuckman)

Description: The group disbands after achieving its goals.

Characteristics:Tasks are completed.

Members may feel a sense of loss or achievement.

Evaluation and reflection take place.Important for temporary

groups like project teams

Understanding these stages helps leaders and members manage group

dynamics more effectively and foster team success.

Stage Descriptions

Forming: Team members are polite and reserved. Roles and

responsibilities are unclear, and there is a focus on orientation and
getting to know each other.

Storming: Conflicts and competition emerge as team members

express their individuality. Disagreements about goals, roles, or
procedures may occur.Agile Coffee.

Norming: The team establishes norms and harmony. Conflicts are

resolved, and cooperation increases. Roles and responsibilities
become clearer.

Performing: The team reaches optimal functioning. Members work

collaboratively towards achieving common goals with high
productivity and efficiency.
 Adjourning: The team disbands after completing its tasks.
Members reflect on their accomplishments and experiences, often
experiencing mixed emotions.

Page | 5
Determinants of Group Behaviour:

Determinants of Group Behaviour refer to the various factors

that influence how individuals behave in a group setting. These
determinants can be broadly categorized into structural, personal,
social, and organizational factors.

Determinants of Group Behaviour refer to the various factors that

influence how individuals behave in a group setting. These determinants
can be broadly categorized into structural, personal, social, and
organizational factors. Here's an overview of the key determinants:

1. Group Structure

Size of the Group: Smaller groups tend to be more cohesive and

participative, while larger groups might struggle with coordination
and communication.

Roles: Defined roles (e.g., leader, recorder, contributor) influence

behavior by setting expectations.

Norms: Unwritten rules or standards that dictate acceptable

behavior within the group.

Status: The relative social position of members within the group

affects influence and participation.

Cohesiveness: The degree to which group members are attracted

to the group and motivated to remain in it.

2. Group Composition

Homogeneity vs. Heterogeneity: Homogeneous groups may

work more harmoniously, while diverse groups bring a wider range
of perspectives and ideas.

Skills and Abilities: The mix of technical, interpersonal, and

problem-solving skills affects group performance.
 Personality Traits: Traits like openness, conscientiousness, and
agreeableness impact group dynamics.

3. Group Processes
Page | 6
Communication: Effective and open communication leads to better
decision-making and conflict resolution.

Decision-Making Processes: Includes methods like brainstorming,

consensus, voting, etc.

Conflict Management: How the group handles disagreements

(constructive vs. destructive conflict).

Leadership: The style and effectiveness of leadership can greatly

impact group motivation and outcomes.

4. Organizational Context

Organizational Culture: Affects norms, values, and expectations

within the group.

Reward Systems: Incentives and recognition can either promote

collaboration or individual competition.

Work Environment: Physical and psychological conditions (e.g.,

resources, stress) that influence group functioning.

5. External Environment

Task Complexity: More complex tasks may require better

coordination and interdependence.

Time Pressure: Urgency can increase stress but also focus group
efforts.

Competition: External competition may enhance internal cohesion

but also lead to stress.

Team Dynamics:

Meaning of Team
 A team is a group of individuals who come together to achieve a common
goal or complete a specific task. Unlike a general group,

A team is characterized by:(characteristics)

Page | 7 Interdependence: Members rely on each other.

Shared Goals: Everyone works toward a common purpose.

Collaboration: Team members cooperate and coordinate their

actions.

Accountability: Both individual and collective responsibility for

outcomes.

Types of Teams

Teams can be classified based on their structure, function, and duration.

1. Functional (or Departmental) Teams

Composed of individuals from the same department or area of

expertise.

Permanent teams working on ongoing tasks.

Example: Finance team, Marketing team.

2. Cross-Functional Teams

Include members from different departments or functions.

Designed to solve specific problems or work on projects requiring

diverse expertise.

Example: A product development team including members from

R&D, marketing, and sales.

3. Self-Managed Teams

Operate without direct supervision.

 Team members take on management responsibilities like planning,
scheduling, and decision-making.

Example: A software development team using Agile methodology.

Page | 8

4. Virtual Teams

Teams that operate remotely using digital tools for communication

and collaboration.

Members may be in different geographical locations or even time

zones.

Example: A global customer support team using video conferencing

and collaboration software.

5. Task Force / Project Teams

Temporary teams formed to work on a specific project or problem.

Disbanded after the task is completed.

Example: A task force investigating a security breach.

6. Problem-Solving Teams

Formed to address specific issues or improve processes.

Often involve brainstorming, analysis, and implementation of

solutions.

Example: A quality control team analyzing production errors.

7. Committees

Usually formed to make decisions or provide recommendations.May

be temporary or permanent.

Example: A safety committee in a manufacturing plant.

 Conflicts:Conflict: Meaning

Conflict refers to a situation where there is a disagreement or clash of

Page | 9 interests, values, actions, or directions among individuals or groups. In
organizations or teams, conflict often arises due to differences in opinions,
goals, or working styles.

Conflict isn't always negative—it can be constructive (leading to better

ideas and solutions) or destructive (causing tension and reducing
productivity), depending on how it's managed.

Sources of Conflict

the major sources of conflict, especially in organizational or team settings

are :

1. Interpersonal Differences

Personality Clashes: Differences in temperament or behavior.

Values and Beliefs: Conflicts due to differing personal values or

ethical beliefs

2. Communication Problems

Misunderstandings: Due to unclear messages, assumptions, or

poor listening.

Lack of Communication: Leads to confusion and mistrust.

3. Role Ambiguity or Overlap

Unclear Responsibilities: When roles and responsibilities are not

well-defined.

Overlapping Duties: When two or more people are assigned the

same task or territory.
 4. Competition for Resources

Limited Resources: Such as budgets, equipment, or workspace.

Time Constraints: Competing deadlines or priorities.

Page | 10

5. Organizational Structure

Hierarchical Tensions: Conflicts between different levels of

authority (e.g., manager vs. employee).

Departmental Rivalry: Competition between departments (e.g.,

marketing vs. sales).

6. Differences in Goals

Conflicting Objectives: One team's goal may conflict with

another’s.

Short-Term vs. Long-Term Focus: Misalignment in priorities.

7. Cultural Differences

Especially in diverse or international teams, differing cultural norms

can lead to misunderstandings and conflict.

8. Poor Leadership

Lack of Clear Direction: Can cause confusion and frustration.

Bias or Favoritism: Creates resentment among team members.

Would you like strategies for resolving or managing conflict effectively

in teams?

Ways of Resolving Conflicts

 Resolving conflict effectively is essential for maintaining healthy
relationships, team productivity, and a positive work environment. There
are some common and effective methods for conflict resolution:

Page | 11 1. Open Communication

Encourage honest and respectful dialogue.

Let each party express their views without interruption.

Use active listening to understand the other person's perspective.

2. Identifying the Root Cause

Go beyond surface issues to understand underlying problem.

3. Collaborative Problem-Solving

Focus on win-win solutions that meet the needs of all parties.

Brainstorm together and agree on mutually beneficial outcomes.

Use a problem-solving approach rather than blame or judgment

4. Negotiation

Both sides make compromises to reach an acceptable solution.

Requires flexibility, fairness, and willingness to adjust expectations.

5. Mediation

Involve a neutral third party to facilitate resolution.

Useful when direct communication fails or emotions run high.

The mediator helps clarify misunderstandings and guides toward

agreement.

6. Setting Clear Expectations

 Clarify roles, responsibilities, and goals to avoid future
misunderstandings.

Define acceptable behaviors and communication norms.

Page | 12
7. Avoidance (When Appropriate)

Sometimes, minor conflicts can be ignored if they are not worth

escalating.

Use with caution; unresolved issues can grow over time.

8. Establishing Conflict Resolution Policies

Organizations can create formal processes for addressing disputes.

Includes grievance procedures, reporting mechanisms, and HR

involvement.

9. Emotional Intelligence Development

Encourage self-awareness, empathy, and emotional control among

team members.

Helps prevent and manage conflicts more constructively.

10. Seeking Higher Authority

If conflict persists, escalate to a supervisor or manager for

intervention.

Should be a last resort when other methods fail.

MODULE NO 04 Organization Development

Meaning of Organizational Development (OD)

Organizational Development (OD) is a systematic, planned effort

to improve an organization's capability through changes in its processes,
 structures, strategies, and culture. It focuses on enhancing
organizational effectiveness and individual development using
behavioral science knowledge.

In simple terms, OD is about helping organizations grow, adapt, and

Page | 13 improve continuously through people-focused and data-driven change
initiatives.

Nature of Organizational Development

The nature of OD can be understood through its key characteristics:

Planned and Systematic: OD is not a random change—it involves

deliberate planning and strategy.

Long-Term Focus: It aims for sustainable improvement over time,

not quick fixes.

Human-Oriented: It emphasizes people, teams, and their

development.

Change-Oriented: OD seeks to bring constructive change in

systems, behaviors, and attitudes.

Collaborative Process: Involves participation from employees at

all levels.

Based on Behavioral Science: Utilizes psychology, sociology, and

organizational behavior theories.

Adaptive and Flexible: Responds to changing internal and

external conditions.

Continuous Process: OD is ongoing, aiming for constant learning

and improvement.

Process of Organizational Development

The OD process typically follows a structured sequence of steps. A widely

accepted model includes the following stages:

1. Problem Identification

Recognizing that a performance gap or issue exists.

 May come from internal observations or external feedback.

2. Diagnosis

Gathering data to understand the root causes of the problem.

Page | 14
Tools: surveys, interviews, focus groups, performance metrics.

3. Planning Change / Action Planning

Designing appropriate OD interventions to address identified issues.

Setting clear objectives, timelines, and responsibilities.

4. Implementation of Interventions

Executing the planned activities (e.g., training, team-building,

structural changes).

Requires support from leadership and involvement of employees.

5. Evaluation and Feedback

Measuring the effectiveness of interventions.

Gathering feedback to see if goals were met and what needs

adjustment.

6. Institutionalization of Change

Embedding successful changes into the organization’s culture and

systems.

Ensures long-term impact and prevents regression to old habits.

Process of OD:

The process of Organizational Development (OD) involves a series of

planned interventions aimed at improving an organization’s effectiveness
and efficiency. These interventions are typically guided by a set of
principles focusing on enhancing the organization’s capacity for solving
problems, adapting to change, and achieving long-term goals.

1. Entry and Contracting

 Objective: Establish the relationship between the OD consultant (or
internal team) and the organization.

Activities:

Page | 15 Understanding the organization’s needs.

Clarifying the role of the consultant, expectations, and scope

of work.

Defining the boundaries of the intervention, timelines, and

resources.

Negotiating an agreement or contract on how to work

together.

2. Data Collection and Diagnosis

Objective: Gather information about the organization to identify

areas that need improvement.

Activities:

Collecting data through surveys, interviews, focus groups,

observations, and document reviews.

Analyzing the current state of the organization to understand

problems and issues (e.g., communication gaps, leadership
issues, performance challenges).

Diagnosing the causes of organizational problems and

identifying root causes.

Sharing findings with key stakeholders for validation

3. Feedback and Planning

Objective: Share diagnostic results with leadership and relevant

stakeholders and develop a plan for action.

Activities:

Providing feedback on the data collected in the diagnosis

phase.

Engaging leadership and key stakeholders in interpreting

findings
 Collaborating to develop specific goals and an action plan for
addressing issues.

Prioritizing interventions based on organizational needs and

resources
Page | 16
4. Intervention Design and Implementation

Objective: Create and implement interventions that address

identified issues and improve organizational functioning.

Activities:

Designing interventions such as team-building exercises,

leadership development programs, process redesign, or
culture change initiatives.

Implementing the interventions through workshops, coaching,

training sessions, or changes in policies or structures.

Ensuring alignment with organizational goals and values.

Monitoring the implementation to ensure effectiveness and

make adjustments as necessary.

5. Evaluation and Follow-up

Objective: Assess the effectiveness of the interventions and sustain

improvements over time.

Activities:

Measuring the outcomes of the intervention against the initial

goals.

Gathering feedback from participants and stakeholders.

Analyzing whether the interventions resulted in desired

changes in behavior, performance, or culture.

Making recommendations for further improvement or

continuous development.

Setting up follow-up meetings to ensure sustained progress

and re-assessment if needed.

6. Sustainability and Institutionalization

 Objective: Ensure that the improvements made through OD
interventions are sustainable.

Activities:

Page | 17 Developing mechanisms for reinforcing change (e.g.,

continuous learning, feedback loops).

Aligning systems, structures, and culture with new ways of

working.

Ensuring that the change is embedded within the

organization’s practices and values.

Building internal capacity for ongoing development.

Conclusion:

The process is cyclical and adaptive, meaning that organizations may

revisit certain stages as conditions change or new challenges arise.
Effective OD interventions require continuous collaboration, commitment
from leadership, and involvement from employees across the
organization. The goal is to foster a positive work environment, improve
organizational performance, and help the organization become more
adaptive to change.

DIAGNOSING:

Meaning of Diagnosing in Organizational Development (OD):

In the context of Organizational Development (OD), diagnosing refers to

the process of understanding and identifying the problems, challenges, or
areas for improvement within an organization. It involves analyzing the
current state of the organization to understand the underlying issues
affecting performance, communication, culture, or other key factors.
Diagnosis helps determine the root causes of issues, rather than just
addressing symptoms.

Comprehensive Model for Diagnosing Organizational Systems:

A comprehensive model for diagnosing organizational systems

involves using a holistic approach to understand the complex
interrelationships between different components of the organization.
 These models typically aim to assess multiple levels and dimensions of an
organization, such as structure, processes, culture, leadership,
technology, and external environment, to understand how they all
influence each other and the organization’s performance.

Page | 18 Key aspects of a comprehensive diagnostic model may include:

1. Systems Thinking:

This approach views the organization as a system composed of

interconnected parts. Changes in one part of the organization (e.g.,
leadership style) may affect other areas (e.g., team dynamics or
communication flow).

It encourages looking at the organization as a whole rather than

isolating specific problems.

2. Multiple Levels of Diagnosis:

Organizational diagnosis typically occurs on different levels:

Individual level: Looking at employees' behaviors, attitudes,

and competencies.

Group/Team level: Examining group dynamics,

collaboration, and decision-making processes.

Organizational level: Understanding how the organization’s

structure, culture, processes, and leadership work together.

The model ensures that all relevant aspects of the organization are
considered.

3. Key Dimensions of Organizational Diagnosis:

Organizational Structure: How the organization is structured

(hierarchical, flat, divisional, matrix), and whether this structure
aligns with its goals.

Culture: Shared values, beliefs, norms, and behaviors that

influence how work gets done in the organization.

Leadership: The role of leaders in guiding, motivating, and

supporting the organization.

Technology and Systems: The tools, processes, and technologies

used by the organization.
 External Environment: The market conditions, industry trends,
and external factors that affect the organization’s operations.

4. Diagnostic Tools and Techniques:

Page | 19 Surveys: Gathering quantitative data from employees to

understand perceptions, job satisfaction, and organizational climate.

Interviews and Focus Groups: Qualitative insights from key

stakeholders to understand experiences and concerns.

Observations: Directly observing behaviors, workflows, and

interactions in the organization.

Document Review: Analyzing organizational documents such as

policies, procedures, and performance reports.

5. Modeling Change:

A comprehensive model often includes strategies for how to

implement change based on the diagnostic findings. It identifies
intervention areas and suggests methods for improving processes,
culture, leadership, or other dimensions.

Comprehensive Diagnostic Model:

One well-known diagnostic model is McKinsey’s 7S Framework, which

focuses on seven key elements that influence organizational
effectiveness:

Strategy – The plan to compete in the marketplace

Structure – How the organization is structured (e.g., hierarchies,

teams).

Systems – The daily activities, processes, and procedures.

Shared Values – The organization's core beliefs and culture.

Skills – The capabilities and competencies of the workforce.

Style – The leadership approach and organizational behavior.

Staff – The people within the organization and their roles.

Each of these elements is interrelated, and a change in one area often

affects others. The model helps diagnose how these components align and
where misalignments may be causing organizational issues.
 Why Use a Comprehensive Diagnostic Model

Holistic Approach: Ensures that all relevant areas of the

organization are considered, which is crucial for understanding
complex problems.
Page | 20
Root Cause Identification: Helps pinpoint underlying causes
rather than just addressing symptoms.

Informed Decision-Making: Provides leaders with a clear

understanding of the organization’s challenges, making it easier to
develop effective interventions.

Improved Organizational Alignment: Ensures that all parts of

the organization are aligned and working toward common goals.

In conclusion, a comprehensive model for diagnosing organizational

systems is a structured and in-depth approach to understanding the
complexities of an organization, identifying areas of improvement, and
informing interventions that lead to better performance, culture, and
efficiency.

Meaning of Change Management:

Change management refers to the structured approach and process

used to transition individuals, teams, and organizations from a current
state to a desired future state. It involves planning, implementing,
managing, and reinforcing changes in business processes, technologies,
or organizational structure to achieve lasting benefits.

It focuses on how people are affected by the change and aims to minimize
resistance while maximizing engagement and adoption.

Importance of Planned Change Management:

Reduces Resistance to Change:

Planned change management helps address fears and uncertainties
by involving stakeholders early and ensuring clear communication,
which reduces opposition.

Improves Communication:
It ensures consistent and transparent communication across all
levels of the organization, helping everyone understand the need for
change and how it affects them.
 Enhances Efficiency:
By preparing thoroughly, organizations can avoid disruptions,
reduce errors, and implement changes more smoothly and quickly.

Boosts Employee Morale and Engagement:

Page | 21 When employees are included in the change process and their
feedback is valued, they feel more secure and committed to
organizational goals.

Increases Success Rate of Change Initiatives:

Research shows that organizations that use structured change
management processes are more likely to achieve their project
goals and sustain improvements over time.

Mitigates Risks:
Proper planning helps identify potential issues early and allows for
proactive risk mitigation.

Supports Organizational Growth:

Change is essential for innovation and competitiveness. Planned
change management ensures that organizations can adapt to
market demands and new opportunities effectively.

Factors influencing change management:

Several factors influence change management, determining whether

a change initiative will succeed or face resistance. These factors can be
internal or external to the organization:

1. Organizational Culture

A culture that embraces innovation and flexibility supports change

more easily.

Resistance is higher in rigid, hierarchical cultures.

2. Leadership and Management Support

Strong, committed leadership provides vision, motivation, and

alignment.

Lack of support from top management can derail change efforts.

3. Communication
 Clear, transparent, and continuous communication reduces
uncertainty.

Poor communication leads to confusion, fear, and resistance.

Page | 22 4. Employee Involvement and Participation

Involving employees early increases buy-in and reduces resistance.

Excluding key stakeholders can result in pushback or

disengagement.

5. Training and Support

Adequate training ensures people have the skills and confidence to

adapt.

Lack of support creates fear and lowers performance.

6. Nature and Scope of Change

Incremental changes are easier to manage than large-scale

transformations.

Sudden or radical changes often face more resistance.

7. External Environment

Market trends, competition, technological advancements, and

regulations can force or shape change.

Organizations must be agile to adapt to these external pressures.

8. Organizational Structure

A flexible structure allows for faster adaptation to change.

Bureaucratic structures can slow down decision-making and

implementation.

9. Past Experience with Change

Successful change history builds confidence and a positive attitude.

Previous failures may create skepticism or fear.

10. Resources Availability

Change requires time, money, tools, and personnel.

 Limited resources can hinder effective implementation

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