Subject Code: BBA102

Subject: ORGANIZATION BEHAVIOUR

Question 1 - Define the term Organizational Behavior. Explain the
importance of Organizational Behavior?
Ans: - Organizational Behavior (OB) is the study and application of knowledge about
how people, individually and groups behave as individuals as well as in groups in the
organizations. Its main purpose is to build better relationships by achieving
individual objectives, group objectives, and organizational objectives and at last,
social objectives. Talcott Parsons defines organization as, a social unit
which is deliberately constructed and reconstructed to seek specific
goals. Etzioni describes three characteristics of organizations: 1 (i) Division of
labor there should be equal distribution of work according to an individuals
qualifications, capacities, interests etc. (ii) Presence of one or more power centers
there must be some persons, who are able to control and coordinate the various
functions/ activities/ people for the smooth functioning of the organization and (iii)
Substitution of personnel there should be a provision for substitution of people by
new employees in case of poor performance, reduced interests, retirement,
accidents, etc. The study of Organizational Behavior can be categorized into Micro
and Macro OB. Micro OB deals with individuals and groups, whereas Macro OB deals
with the organization at large. O.B. is made up of two words: organization and
behavior, which means understanding the organization and understanding behavior
of people in the organization.
Objectives:
Explain the concept of Organizational Behavior
List out the key elements of OB
Examine the foundations of OB
Discuss the challenges for OB and attempts to overcome them.
Importance of Organizational Behavior: - organizations comprise people who
show differentiated behaviors. Dealing with such varied behaviors is an essential
activity of managers. Therefore, organizational behavior helps managers to
understand and manage human behavior at their work place. Let us now have a
look at how the study of OB is useful to managers:
1. Understanding of self and others OB is a useful tool for understanding
human behavior that can be studied at the individual, group or organizational
level. The organizational behavior helps an individual to understand himself as
well as others better. This also improves interpersonal relations among all levels
of employees. The most significant topics covered under this aspect are: values
and attitudes, perception, communication, leadership, transactional analysis,
power and conflict.
2. Motivation of human resources the task of a manager is to get the work
done through subordinates by inspiring them to achieve organizational goals.
But, this can only be practiced by a manager if he is aware of the different
patterns of individuals needs and desires. Hence, OB helps the manager to

3.

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understand these differing need patterns and suitable methods of rewarding

employees by fulfilling their needs.
Effective communication communication is very vital for all managers. It is
only through communication that two people are able to exchange their views
and opinions. Good communication can lead to wonders in the organization,
whereas poor communication can create blunders. Therefore, to run the
organization effectively, managers need to learn first how to communicate
formally and informally with individuals and groups. Unit 10 will deal with the
communication aspect.
Effective organizational climate this covers a broader view rather than
focusing on narrow aspects. OB stresses upon creating a healthy climate
comprising harmonious inter-personal relations, hygienic working conditions, fair
and adequate compensation, better and safe equipment for performing the job,
effective leadership, employees participation, etc.
Good human relations OB strives to maintain harmonious inter-personal
relationships. The study of OB revolves around the people at work and their
relations with each other. Thus, it provides directions to managers as to how to
deal with employee problems in different situations. For example, a worker
remains absent for a number of days and even when he turns up, he keeps
himself away from the work. The reason might not always be less
compensation/family problems/strict supervision etc.; it might so happen that the
employee needs recognition for his work. Thus, OB helps managers to
understand the different motives of different individuals and the ways to control
them.
Introduction of change in the organization change is the law of nature and
is inevitable. This is the result of social, technological, political, economic or
other environmental factors. Dealing with human resistance is the toughest and
the most challenging task of a manager. Therefore, OB guides managers on how
to cope with human resistance

Question 2 - Explain the following:

a) Span of Control
b) Centralization and Decentralization
Ans: - a) Span of Control: - This is also known as the span of
management/supervision. Span of control refers to the maximum number of
employees that can be supervised efficiently and effectively by a senior (as shown in
Figure 2.6).

Figure illustrates the span of Control

There are two types of spans narrow span of control and wide span of control. In a
narrow span of control, there are a smaller number of subordinates to be supervised
by a senior and hence, due to a smaller number of subordinates the number of levels
in the organization gets increased. This takes the shape of a tall organization. On the
other hand, where there is a larger number of subordinates being directed by a
senior, there will be few layers in the organization and will shape it as a wide or flat
organization (as shown in figure 2.7). Studies reveal that companies like Du Pont,
General Motors, Hindustan Lever Ltd., Bank of America have wide spans. It has been
a debatable issue as to how many subordinates should report to one senior. Some
modern theorists believe that span of control is dependent on a few factors such as
(i) capacity of the senior to direct more number of subordinates (ii) capacity of
subordinates to do the tasks themselves (iii) size of the organization (iv) nature of
work (v) time available for supervision (vi) control mechanism if a senior wants
direct supervision then he can only go for narrow span and if there is a thorough
reporting system, then wide span can be managed and (vii) effectiveness of
communication in case of clear and transparent communication, large number of
levels can be managed easily.

Figure 2.7: Illustrates the Tall and Flat structure

b) Centralization and Decentralization: - The main managerial function is
concerned with taking decisions. Centralization and decentralization are concerned
with the manner in which decision-making authority is divided at different

hierarchical levels. Centralization refers to the degree to which authority is

concentrated at one position i.e. the top position, whereas, in decentralization the
authority is distributed and passed on to other levels of the organization. In the
words of Henri Fayol,Everything that goes to increase the importance of the
subordinates in known as decentralization and everything that goes to reduce it is
known as centralization. Whether to have centralization or decentralization also
depends on the size of the organization. Apart from this, neither of the two can be
practiced alone, because if the senior will exercise the entire authority then the
subordinates will not be able to perform their best and there will be more conflicting
situations. Likewise, if the manager passes all his power to his subordinates then he
might cease to exist. Hence, it is important to create a balance between the two and
accordingly practice depending upon the situation, nature of work, type of
subordinates/seniors and size of organization.

Question 3 - Define the term Learning. Explain any three theories of

learning?
Ans: - An organization where people learn the right things quickly is successful. An
organization where learning is neglected falls apart. Since learning is so essential for
the well-being of an organization it is not surprising that substantial managerial effort
is directed towards creating a learning environment and learning itself. Right from
the induction into an organization till retirement, organizational learning is an
inescapable fact. If learning is important it is also important to understand how
people learn, elements of the learning process, role of teachers and facilitators in
learning, and also about an effective learning environment.
Learning is vital - both for individuals as well as organizations. It is vital because new
possibilities are emerging and new threats confront us continuously. We are living in
a world that is ever changing. New technologies are being created regularly; new
understandings of human nature are being identified. The ethico-legal atmosphere is
being modified almost daily. New products are being launched; new advertising
campaigns are being planned. Indicators of economy change rapidly. Anyone who
stops learning in this ever changing world is outdated quickly. Would you like to go to
a doctor who is not updated about new diseases, latest medicines, and recent
diagnostic and therapeutic technologies? You will not even travel in an airplane or a
car where the pilot/driver is not properly trained. Thus, it is in our interest that we
update ourselves with changes around us and learn new techniques skills,
knowledge, approaches and ideas. This applies on organizations also. Statesman
one of the leading newspapers of India since 1868 is fighting a lost battle today
because its managers had stopped learning. Today individuals and organizations
have to learn continuously. Learning has also been identified as a major source of
motivation. Today there are many employees who will opt for a job that provides
better learning opportunities. This is because of two reasons, a job that does not
require learning becomes monotonous and boring, whereas jobs requiring continuous
learning are interesting and challenging. The job of a scientist is definitely more
interesting than the job of a clerk. To many of us learning itself is a very satisfying
experience.
Objectives:
After studying this unit you should be able to:
Explain the concept of learning and learning cycle
Describe components of learning
Discuss theories of learning.
Theories of Learning: As learning became important for human civilization, it
invited the attention of many researchers. They identified several approaches to
learning. They are as follows:
I. Classical conditioning
II. Operant conditioning
III. Social learning
IV. Cognitive learning

V. Programmed learning
I. Classical Conditioning: This approach explains the learning of reflex
behavior. An
example of a reflex behavior is- when stuck with a pin we flinch
without thinking. Pavlov a Russian scientist conducted a remarkable
experiment on his dog. Pavlov observed that his dog began to salivate as soon as
food was offered to it. It did not salivate when a bell was rung. Thereafter he
trained his dog by ringing a bell and then offering food to the dog. After
sometime he noticed that dog would salivate as soon as the bell was rung. Thus
the dog had learnt to associate ringing of the bell with food. In other words
Pavlov paired a ringing bell (conditioned stimulus) with food (unconditioned
stimulus).

Figure 4.2: Illustrates the Palvovs experiment

Is classical conditioning relevant for human learning? It is. We are filled with
pride and patriotism when we hear our national anthem. This is the result of
learning through classical conditioning. But is classical conditioning important in
organizations? Most mission and vision statements have components that
employees learn through classical conditioning. Since in organizations managers
are interested in instilling voluntary behaviors, classical conditioning has a very
limited role in organizational learning.
II. Operant conditioning: B. F Skinner is closely associated with this learning
theory. Operant conditioning is based on the fact that voluntary behaviors are
learnt. As human beings we learn behavior because we find it rewarding. In the
same way we can unlearn behavior if its consequence becomes unrewarding or
punishing. Thus a child learns to become obedient because he is rewarded with
parental love and appreciation. Similarly a child stops bad behavior when
punished. In organizations also Operant conditioning is found frequently. When
an individual works hard he or she is paid accordingly. When an individual takes
the initiative he or she is appreciated. Similarly, if a person remains absent he
may lose his pay. If he is late he may not be allowed to enter the organization.
Operant conditioning therefore is an important tool for managers, who want the
employees to learn productive voluntary behaviors and give up voluntary
unproductive behaviors.
III. Social learning: This theory of learning is an extension of operant
conditioning. Albert Bandura demonstrated that people learn or unlearn
behaviors even by watching others being rewarded or punished for a particular
behavior. We decide on our behavior by watching others. In other words we
keenly watch others around us then develop a mental picture of a behavior and
its result and finally we try the behavior ourselves. Managers use rewards and
punishments to set an example also. When we see others being rewarded we are
motivated to pick up that behavior. When we see others being punished we are
discouraged to acquire that behavior. Researchers such as M.L Bigge have
suggested the following steps for applying social learning theory in
organizations:

Identify the behavior that enhances performance/productivity.

Select a suitable model for others in the organization to observe.
Ensure that employees possess the required skills.
Provide positive feedback to the model and other employees who learn the
behavior.
Maintain such beneficial behaviors by developing appropriate practices in the
organization.

Question 4 - Define the term motivation. Explain Maslows need Hierarchy

theory?
Ans: - The term motivation has its origin in the Latin word mover which means
to move. Thus, motivation stands for movement. One can move people by
incentives or threats which can have a limited effect. These work for a while and then
need to be repeated, increased or reinforced to secure further movement.
The term motivation may be defined as the managerial function of
ascertaining the motives of subordinates and helping them to realize those
motives.
According to Dubin, motivation could be defined as the complex of forces
starting and keeping a person at work in an organization. Motivation is
something that moves the person to action, and continues him in the
course of action already initiated.
All the theories of motivation can be classified into two broad categories, content
theories and process theories. 1) Content theories 2) Two factory theory
Content (or need) theories of motivation focus on factors internal to the
individual that energize and direct behavior. In general, such theories
regard motivation as the product of internal drives that compel an
individual to act or move (hence, "motivate") toward the satisfaction of
individual needs. The content theories of motivation are based in large part on
early theories of motivation that traced the paths of action backward to their
perceived origin in internal drives.
Content theories include Maslows need hierarchy theory, Herzbergs two factor
theory, Alderfers ERG and Achievement Motivation theory. Process theories include
Vrooms Expectancy Model, Adams Equity theory and Portors Performance and
Satisfaction model.
Maslows Need Hierarchy Theory: - Abraham Harold Maslow in the year 1954
proposed the need Hierarchy theory of Motivation. This theory says that
a) Human behavior is influenced by their wants and desires.
b) Any unsatisfied need acts as a motivator.
c) Needs are hierarchical.
d) People can move from lower needs to upper needs.
Maslow identified five levels of needs which are the source of motivation: These needs are
1) Physiological Needs: These are lower level needs. They include food, air,
water, shelter and other bodily needs.
2) Safety Needs: Once physiological needs are met, another set of needs called
safety needs becomes the motivating factor. It includes needs for protection, a
secure and stable environment. In the organizational context it includes job
security, safe working conditions, pension scheme, provident fund etc.

3) Social Needs: This is the third level of the hierarchy of the needs. It includes
respect, affection, friendship or interaction with people.
4) Esteem Needs: The next level in Maslows hierarchy is esteem or ego needs.
These needs arise when we want to be appreciated for what we can do. These
needs include self-respect, personal achievement, status, recognition and
attention.
5) Self-actualization Needs: When all the earlier needs are fulfilled people
move to next level of need that is self-actualization needs. These needs
represent self-fulfillment which includes growth and achievement.
Thus Maslow classified these needs into higher and lower level needs. After
satisfying the lower level needs a person moves to higher level needs.

Figure 7.2: Maslows Need Hierarchy

Maslows need hierarchy theory has been criticized on the following arguments
a) It is difficult to interpret and operationalize the concept of need hierarchy.
b) This model is based on relatively small subjects.
c) The need classification model is artificial and arbitrary which cannot be given in
a five step hierarchy.
d) The same need will not lead to the same response in all the individuals.
e) The concept of need is introspective in nature which cannot be tested objectively.
f) Individuals differ in the relative intensity of their various needs.
In spite of all the criticism the need priority model is useful because of its rich and
comprehensive view of needs. The theory is relevant because needs are important
for understanding behavior. It can be accepted due to its immense intuitive appeal.
It has survived and is widely used in understanding the need motivation concept.

Question 5 - What is meant by conflict? Describe the sources of conflict?

Ans: - Conflict is a part of our day-to-day life. When we look around we see that
every day we have some or other disagreement with people. Conflict is a natural
disagreement resulting from individuals or groups that differ in attitudes, beliefs,
values or needs. It can also originate from past rivalries and personality differences.
Other causes of conflict include trying to negotiate before the timing is right or
before needed information is available. Conflict is not always negative. In fact, it can
be healthy when effectively managed. Healthy conflict can lead to.
Growth and innovation
New ways of thinking
Additional management options
High productivity.
Objectives:
After studying this unit you should be able to

List out the types and sources of conflict.

Explain levels of conflict.
Discuss conflict management approaches.

Definition and Meaning

Robbins says that, conflict is a perceived difference of values between two or more
parties that results in mutual opposition. It implies both, opposing interests or goals;
opposing or incompatible behavior. It is a process in which A deliberately tries to
offset the efforts of B by some form of blocking that will result in frustrating B in
attaining his goals or frustrating his interests.
Sources of Conflict: - In any effective and efficient organization it is important that
the employees should have a shared objective and strive to achieve it. A manager
should be able to recognize and resolve the conflict in the organization. Conflict isa
very big obstacle so we need to keep it at minimum. The proper management of
organizational conflict needs an understanding of the nature and the source of
conflict at the work place. As we know, conflict is present in every organization.
Following are the sources of conflict which have been identified in organizations:
a) Interdependence: In organizations, for the accomplishment of the goal, a
certain amount of interaction is necessary. It is basically the dependence of one party
on the other for resources and information. There is no such direct relationship
between interdependence and conflict, but it is said that interdependence increases
the chance of conflict. According to J. Thompson, there are three different types of
interdependence among groups.
i) Pooled interdependence: When departments have very little interaction with
each other, but can be affected by each others action, then it is known as pooled
interdependence. For example, the Bangalore branch of a bank has no direct
interaction with the Kolkata branch. But their resource comes from one center
and the success of the organization depends upon the success of both the
branches. This is pooled inter dependence. The conflict arises when there is
scarcity of resources and both have to use them.
ii) Sequential interdependence: When the output of one department becomes the
input
of another department, it is known as sequential interdependence. Here
there is one way flow of information, output and services. The total performance
of the receiving department depends upon the supplying department, which can
be a cause of conflict between the receiving department and the supplying
department.

iii) Reciprocal interdependence: When two or more people are mutually

interdependent in accomplishing the task, it is known as reciprocal
interdependence. They share information and resources. We can take the
example of a nursing home, where frequent interactions, proper time
coordination and exchange of information and resource are required among the
staff and doctors of that particular nursing home. Success depends upon good
communication and joint decision making; lack of these will always lead to
conflict.
b) Scarcity of resources: Conflict on resources is very common in organizations, and
if the sources are scarce in nature then the chances of conflict increase. This is
because these scarce resources are shared by various groups, departments and
individuals in the organization.
c) Specialization: One of the major causes of disagreement in the organization can
be high degrees of specialization. A person with a high degree of specialization will
not give importance to the advice of others. Not only this, he will not be aware of the
other areas. Due to his specialized training and development he has his own values
and beliefs, so he always tries to work in his own way and ignore others. This
ultimately leads to conflict.
d) Competitive incentive and reward system: Competitive incentive and reward
system can be one of the causes of inter- group conflict. If the reward plan is
associated with group performance and the tasks are interdependent, then instead of
cooperation, competition increases and people try to succeed at the expense of
others.
e) Incompatible personalities: As we all know, no two people are the same. There
are certain people who consider themselves as perfectionists. They are achievement
oriented and hard working. These people are not aware of the feelings of others.
They are highly critical of others, which create stress among others and leads to
conflict.
f) Lack of clarity of roles and responsibilities: A clear line of role and
responsibility is very important for any organization. In the absence of it there is no
one to take the responsibility if required. Employees start passing the buck. Instead
of solving the problem they tend to blame others and conflicts can arise on assigning
the responsibilities.
g) Differences of perception, value and attitude: The personality of an
individual plays a very important role in creating perception. Different people have
different expectations, and when they are not fulfilled, it generates conflict. When
there is a difference in value and attitude, there is always a chance of conflict.
h) Poor communication: In the absence of good communication there is always a
chance of interpersonal conflict. Communication barriers such as wrong
interpretation of the message, structural or emotional barriers, language barrier or
mind set of the receiver, can be the cause of arguments and lead to conflicts.
i) Cultural barriers: Modern organizations operate with a diverse work force.
People come from different cultures and become a part of a group, but they have
their own way of thinking. Anything which is acceptable in one organization
might not be acceptable in another. This can be a cause of clash and leads to
conflict.
Hence, we can say that there are different sources of conflict in the organization.
There are other sources of conflict also such as

poor or inadequate organizational structure

Lack of team work.
Group decision making
Heterogeneity of employees etc.

Question 6 - Write short notes on the following:

a) Organization Culture
b) Conflict management
ANS: - a) Organization Culture: - Organization culture is the set of shared values
and norms that controls organizational members interactions with each other and
with people outside the organization. It is referred to as the common perception held
by the members towards their organization. Organization culture is a system where
values, norms and principles are shared largely by all people. Values are the beliefs
that guide our behavior and decisions across a variety of situations. Values are
intensely held in the organization culture and are known as shared values. Shared
values are those values that are practiced in common by all the employees of the
organization. For example, increasing organizational efficiency, increasing
productivity, maintaining the image and good will of the company, etc., if these are
followed and shared by almost all the employees of the company then it is known as
shared values. Thus, organization culture defines what is right or wrong, what is
important or unimportant and what is favorable or unfavorable in the
company. Kelloggs company has been awarded for being one of the most ethical
companies because they work with integrity, passion, and most primarily, they stick
to their vision and values.
Objectives:

state the meaning of Organization culture

paraphrase the origin of organization culture
state the levels of organization culture

Functions of Organization Culture

The following are the important functions performed by the culture of an

organization It defines a boundary between one organization and others.
It conveys a sense of identity to its organizational members
It enhances commitment to organizational goals that is superior to an
individuals self-interest.
It provides standards and benchmarks to employees as to what they are
supposed to do.
Organization culture cannot be created overnight, because it comprises values
and beliefs that are shared universally.
It is not possible for an individual to create the culture of an organization alone.
The founder of the organization and members of the top management of the
organization have to play an important role in shaping the culture.
There are many subcultures present within the organizational culture. These
subcultures are formed as a result of the different desires and needs of the
employees.
The culture of the organization is passed through generations, i.e. from old
employees to new employees, through the process of socialization (the
socialization process is discussed in section 11.5.2).
Organization culture once formed is not easy to change because cultural change
requires the people to change their behavior. As we all know, its quite difficult
for us to change our old way of doing things and get adapted to new things.

b) Conflict management: - Conflict is a part of our day-to-day life. When we look

around we see that every day we have some or other disagreement with people.
Conflict is a natural disagreement resulting from individuals or groups that differ in
attitudes, beliefs, values or needs. It can also originate from past rivalries and
personality differences. Other causes of conflict include trying to negotiate before
the timing is right or before needed information is available. Conflict is not always
negative. In fact, it can be healthy when effectively managed. Healthy conflict can
lead to.

Growth and innovation

New ways of thinking
Additional management options
High productivity.

In an organization, conflict can have many forms and there can be various sources
of conflict. If it is not managed properly and on time it can destroy the whole
organization. There are many cases in which companies were locked up due to the
conflict between management and employees. Formatted: Font color: Auto
If the conflict is understood, it can be effectively managed by reaching a consensus
that meets both the individual's and organizational needs. This results in mutual
benefits and strengthens the relationship.
Objectives:

list out the types and sources of conflict.

explain levels of conflict.
Discuss conflict management approaches.

The features of conflict are as follows:

I. Conflict is incompatible in nature. It occurs when two or more people have mutually
exclusive goals to be achieved.
II. Conflict arises due to scarcity of resources.
III. Conflict can be verbal or non-verbal behavior.
IV. Conflict is deliberate. Conflict exists when some negative behavior is shown
intentionally.
V. It is based on perception. It arises when people have differences in the interpretation
of facts.
Conflict Management Approaches: It is said that conflict is harmful for any
organization, but at times conflict can be very useful in the organization. A manager
should have the ability to identify the constructive conflict and he should use it for
organizational effectiveness. Optimum level of conflict can stimulate competition
which can have a positive impact on the organization. It helps in minimizing group
think; people can be more innovative and creative. It results in better decision
making. Robbins says that the following approaches can be used to stimulate
moderate level of conflict in the organization:

Encouraging individualistic thinking

Increasing individual competition by rewarding individual performance.
Providing all good and bad news to the employees
Creating role conflict between perceived and actual role.
Bringing change in the organizational structure.
Restructuring the work unit.
Adopting the role of devils advocate in group discussion.
Bringing outsiders into the organization.