Ii Bba Ob Material

OB STUDY MATERIAL Dr. CH. RAVIVARMA, P.
hd
ORGANIZATIONAL BEHAVIOUR
Unit-I: Focus and Purpose: Definition, need and importance of organizational behaviour –
Nature and scope – Frame work – Organizational behaviour models.
Unit-II: Personality – types – Factors influencing personality – Theories – Learning – Types of

learners – The learning process – Learning theories – Organizational behaviour modification.
Misbehavior – Types – Management Intervention. Emotions - Emotional Labour – Emotional
Intelligence – Theories.
Unit-III: Attitudes – Characteristics – Components – Formation – Measurement- Values.

Perceptions – Importance – Factors influencing perception – Interpersonal perception Impression
Management. Motivation – importance – Types – Effects on work behavior.
Unit-IV: Organization structure – Formation – Groups in organizations – Influence – Group

dynamics – Emergence of informal leaders and working norms – Group decision making
techniques – Team building - Interpersonal relations – Communication – Control.
Unit-V: Leadership and Power :Meaning – Importance – Leadership styles – Theories – Leaders
Vs Managers – Sources of power – Power centers – Power and Politics.
SANJEEV DEGREE COLLEGE, KAKINDA Page 1

OB STUDY MATERIAL Dr. CH. RAVIVARMA, P.hd
Unit-I: Focus and Purpose: Definition, need and importance of organizational behaviour –
Nature and scope – Frame work – Organizational behaviour models.
1.1. Meaning & Definition

“Organizational Behavior is the study of human behavior in organizational settings, the interface
between human behavior and the organization, and the organization itself.”
“Organizational Behavior is a field of study that investigates the impact that individuals, groups,
and structures have on behavior with in organizations for the purpose of applying such
knowledge towards improving organization’s effectiveness.”
“OB is the study and application of knowledge about how people – as individuals and as group –
act within organizations.”
Roman J. Alday has defined “O.B as a branch of the social science that seeks to build theories
that can be applied to predicting understanding and controlling behavior in work organizations”.
Organization Behavior is the study of application of knowledge about how people act within
organizations. It is a human tool for human benefit. It applies broadly to the behavior of people
in all types of organization, such as business, government, school and service organizations.
Fred E Luthans
1.2. Need and Importance of organizational behavior

➢ OB provides a road map to our lives in organizations
➢ OB uses scientific research to understand and make organization life, as it helps in
predict what people will do under various conditions.
➢ It helps to influence organizational events – to understand and predict events.
➢ It helps individual understand herself/himself in better fashion.
➢ It helps managers to manage human resources effectively.
➢ It helps organizations for maintaining cordial industrial relations.
➢ It is also useful in the field of marketing.
1.3. Nature and scope of Organizational Behavior

1.3.1. Nature:
➢ O.B is goal oriented

➢ O.B seeks to balance human & technical values at work.

➢ O.B is normative and value centered
➢ O.B is an emerging field of study that integrates behavioral science
➢ O.B is both an art and a science.
➢ Interdisciplinary approach
➢ Humanistic and optimistic
➢ A total system approach
➢ It has assumed the status of a distinct field of study. It is a part of general management. It
represents behavioral approach to management.
➢ It contains a body of theory, research, application associated when a growing concern for
in work place. Its study helps in understanding human behavior.
➢ The study of theories and research experiences of organization facilitates manager for
creative thinking to solve human problems in organizations
➢ This discipline is heavily influenced by several other behavioral sciences and social
sciences like psychology, Sociology and anthropology.
➢ It provides rational thinking about people. It concentrates on three level of behavior. The-
y are individual behavior, group behavior and organizational behavior.
➢ O.B. has psychological foundations. The concept like learning, perception,attitude, motiv
ation etc is borrowed from psychology, sociology and anthropology
➢ Organization behavior is both art and science. It is considered as art because it contains
knowledge about behavior of individuals. It is considered as science because it involves
application of science.
➢ Organization behavior is dynamic rather than static. It essence is reflected in change in
behavior of individuals in organization.
➢ It attempts to reduce the wasteful activities through economic and psychological means
and thus increasing the effectiveness of the people and the organization.
1.3.2. Scope:
➢ OB is used to understand impact of personality on performance.
➢ Employee motivation
➢ Leadership
➢ It helps us to know how to create effective teams and groups
➢ Study of different organizational structures

➢ Individual behavior, attitude and learning

➢ Perception
➢ Design and development of effective organization
➢ Job design
➢ Impact of culture on organizational behavior
➢ Management of change
➢ Management of conflict and stress
➢ Organizational development
➢ Organizational culture
➢ Transactional analysis
➢ Group behavior, power and politics
➢ Job design
➢ Study of emotion
The Different Fields from which Organization Behavior takes its matter include:
Psychology: Psychology is defined as the study of human behavior which tries to identify the
characteristics of an individual and provides an understanding why an individual behaves in a
particular way. Thus psychology provides us with useful insight into areas such as
human motivation, perceptual processes or personality characteristics.
Sociology: Sociology is the study of social behavior, relationships among social groups and
societies, and the maintenance of social order. The main focus of attention is on the social
system. This helps us to appreciate the functioning of individuals within the organization which
is essentially a socio-technical entity.
Social Psychology: Social psychology is the study of human behavior in the context of social
situations. This essentially addresses the problem of understanding the typical behavioral
patterns to be expected from an individual when he takes part in a group.
Anthropology: Anthropology is the science of mankind and the study of human behavior as a
whole. The main focus of attention is on the cultural system, beliefs, customs, ideas and values
within a group or society and the comparison of behavior amongst different cultures in the
context of today’s organizational scenario.

It is very important toappreciate the differences that exist among people coming from different
cultural backgrounds as people are often found to work with others from the other side of the
globe.
Economics: Any organization to survive and sustain must be aware of the economic viability of
their effort. This applies even to the non-profit and voluntary organizations as well.
Political Science: although frequently overlooked, the contributions of political scientists are
significant to understand arrangement in organizations. It studies individuals and groups within
specific conditions concerning the power dynamics.
1.3.3. Evolution of OB
Historical development of OB describes its progress from very primitive stage to the advanced or
modern stage. The stages may be called the evolution stages of OB development.
Phase1 (Scientific Management Movement): early management pioneers (all classical thinkers),
particularly F W Taylor, and others, provided a base for OB. F.W. Taylor, Henry Feyol and
others, provided a base for OB. Contributions of P F Drucker, in the form of MBO, and Herbert
Simon, Koontz and March, in the form of socio-technical system, recognize the role the human
element can play in improving productivity.
Phase 2 (The Hawthorne Experiments): Elton Mayo, F J Roethlisberger and others, during 1924-
34 conducted industrial experiments at Hawthorne plant of Western Electric Company at
Chicago, in America. Their studies brought out a positive correlation between productivity and
workers’ participation.
Phase 3 (Organisational Behaviour): in third phase, a series of experiments and studies were
conducted across the world to strengthen the base of OB. Particularly, many theories have been
developed on motivation and leadership to enrich the subject matter. Other disciplines –
anthropology, psychology, sociology, social psychology, political science, economics etc. – have
been adequately exploited to enrich contents and application of OB.
In this phase OB is recognized as an important discipline, and has been incorporated in
management education and training. People hold in high esteem in those who are closely
concerned with OB, including students, teachers, trainers, experts and behavioral scientists. OB,
a branch of study with adequate theoretical and practical support, is widely used by today’s
managers to cope with global cultural diversities in multinational companies.

Phase 4 (Positive Organizational Behavior): while psychology is the base for OB, positive
psychology is the base for POB. Positive psychology applies a more matured refined, and
advanced approach to human element at work. It potentially contributes to excellent work
performance, job satisfaction, quality work life, and work life balance. Major focus of POB is to
perceive human beings positively at work, and to develop better human qualities and capabilities
needed to work and live better. Major areas of positive organizational behavior include
optimism, hope, happiness, resiliency, emotional intelligence, leader efficacy and team efficacy,
self efficacy, etc.
1.4. Frame work or models of Organizational Behavior
Model or framework is a description of how things work, and is also known as paradigm. The
model shows several relevant variables in OB, their interrelations (interplay), and resulting
outcomes. Experts in the field have developed different models to explain what relevant
variables undergo in organizational behavior and their interaction. Each OB model makes some
assumptions about the nature of people. These paradigms influence the thoughts and actions of
managers and guide their behavior.
1. Cognitive framework of behavior:
Cognitive approach emphasizes the positive and freewill aspects of human behavior and uses
concepts such as expectancy, demand, and intention. Cognition can be simply defined as the act
of knowing an item of information. In cognitive framework, cognitions precede behavior and
constitute input into the person’s thinking, perception, problem solving, and information
processing.
The work of Edward Tolman can be used to represent the cognitive theoretical approach.
According to Tolman, learning consists of the expectancy that a particular event will lead to a
particular consequence. This cognitive concept of expectancy implies that organism is thinking
about, or is conscious or aware of the goal and result of a behavior exhibited by it. It means that a
person desires a goal and also knows the behavior that will lead to achievement of the goals.
In the subject of organizational behavior, cognitive approach dominates the units of analysis such
as perception, personality and attitudes, motivation, behavioral decision making and goal setting.
2. Behavioristic Framework: Pioneer behaviorists Ivan Pavlov and Jon B. Watson stressed the
importance of studying observable behaviors instead of the elusive mind. They advocated that
behavior could be best understood in terms of stimulus and response (S-R). They examined the
impact of stimulus and felt that learning occurred when the S-R connection was made. Modern

behaviorism, that marks its beginning with B.F. Skinner, advocates that behavior in response to a
stimulus is contingent on environmental consequences. Thus, it is important to note that
behaviortistic approach is based on observable behavior and environmental variables (which are
also observable).
3. Social Cognitive Framework: Social learning theory takes the position that behavior can best
be explained in terms of a continuous reciprocal interaction among cognitive, behavioral, and
environmental determinants. The person and the environmental situation do not function as
independent units but, in conjunction with behavior itself, reciprocally interact to determine
behavior. It means that cognitive variables and environmental variables are relevant, but the
experiences generated by previous behavior also partly determine what a person becomes and
can do, which, in turn, affects subsequently behavior. A persons cognition or understanding
changes according to the experience of consequences of past behavior.
Bandura developed social learning theory into the more comprehensive social cognitive theory
(SCT). Stajkovic and Luthans have translated this SCT into the theoretical framework for
organizational behavior. Social cognitive theory recognizes the importance of behaviorism’s
contingent environmental consequences, but also includes cognitive processes of self regulation.
The social part acknowledges the social origins of much of human thought and action (what
individual learns from society), whereas the cognitive portion recognizes the influential
contribution of thought processes to human motivation, attitudes, and action. In social cognitive
theoretical framework, organizational participants are at the same time both products and
producers of their personality, respective environments, and behaviors. The participants as a
group of produce the environment, every individual is a product of the environment and through
his behavior changes the environment for others as well as for himself, every individual is a
product of his personality, but also influences his personality as consequence of results of his
behavior.
Bandura identified five basic human capabilities as a part of SCT.

1. Symbolizing: People process visual experiences into cognitive models. They help in future
action.
2. Forethought: Employees plan their actions.

3. Observational: Employees learn by observing the performance of the referent group (peers,
supervisors and high performers) and the consequences of their actions.
4. Self-regulatory: Employees self regulate their actions by setting internal standards (aspired
level of performance).
5. Self-reflective: Employees reflect back on their actions (how did I do?) and perceptually
determine how they believe then can successfully accomplish the task in the future given the
context (probability of success between 0 to 100% is estimated)
1.5. Modern Models of Organizational Behavior:
1. Autocratic Model: Autocratic model is the model that depends upon strength, power and formal
authority. In an autocratic organization, the people (management/owners) who manage the tasks
in an organization have formal authority for controlling the employees who work under them.
These lower-level employees have little control over the work function. Their ideas and
innovations are not generally welcomed, as the key decisions are made at the top management
level.
2. Custodial Model: The custodial model is based around the concept of providing economic
security for employees – through wages and other benefits – that will create employee loyalty
and motivation. The underlying theory for the organization is that they will have a greater skilled
workforce, more motivated employees, and have a competitive advantage through employee
knowledge and expertise.

One of the downsides with the custodial model is that it also attracts and retains low performance
staff as well. Or perhaps even deliver a lower level of motivation from some staff who feels that
they are “trapped” in an organization because the benefits are too good to leave.
3. Supportive Model: Unlike the two earlier approaches, the supportive model is focused around
aspiring leadership. It is not based upon control and authority (the autocratic model) or upon
incentives (the custodial model), but instead tries to motivate staff through the manager-
employee relationship and how employees are treated on a day-to-day basis.
Quite opposite to the autocratic model, this approach states that employees are self-motivated
and have value and insight to contribute to the organisation, beyond just their day-to-day role.
The intent of this model is to motivate employees through a positive workplace where their ideas
are encouraged and often adapted. Therefore, the employees have some form of “buy-in” to the
organisation and its direction.
4. Collegial Model: The collegial model is based around teamwork – everybody working as
colleagues (hence the name of the model). The overall environment and corporate culture need to
be aligned to this model, where everybody is actively participating – is not about status and job
titles – everybody is encouraged to work together to build a better organisation.
The role of the manager is to foster this teamwork and create positive and energetic workplaces.
In much regard, the manager can be considered to be the “coach” of the team. And as coach, the
goal is to make the team perform well overall, rather than focus on their own performance, or the
performance of key individuals.
The collegial model is quite effective in organisations that need to find new approaches –
marketing teams, research and development, technology/software – indeed anywhere the

competitive landscape is constantly changing and ideas and innovation are key competitive
success factors.
5. The S-O-B-C Model:

Fred E Luthans has explained the conceptual framework of OB in form of the S-O-B-C Model.
Nature and scope of OB can be better explained by S-O-B-C Framework. It describes important
constituents and sub-constituents in OB. Four main elements of the S-O-B-C model are:

1.6. Role of Organisational Behaviour:

➢ Responding to globalization
➢ Managing workforce diversity
➢ Improving quality and productivity
➢ Effective outsourcing
➢ Working with network organization and virtual organization
➢ Developing and imparting managerial skills.
➢ Employee empowerment and self-managed teams
➢ Stimulating innovation and change
➢ Ethical and positive behavior
1.7. Limitations of Organisational Behaviour:
➢ OB is just passive knowledge and not a readymade solution to every type of human
problems.
➢ Knowledge of organisaitonal behavior is based on research and experiments made in
western countries many decades age. So, it cannot be applied everywhere directly.
➢ Most theories and concepts have been developed many years back. In a completely
changed environment, it has limited suitability.
➢ Methodological aspects are major limiting factors. Most experiments were made on
creatures like monkeys, bulls, rats, rabbits, dogs, pigeons. Etc., to generate OB
knowledge and draw conclusions.
➢ Many critics argued that application of OB follows the law of diminishing returs. At a
particular level, use of OB may not contribute positively. Eve, performance starts
declining due to excessive use of knowledge.
➢ It is concerned with only one facet of the organisation i.e., human factor, it avoids totality
or system approach.
➢ Multidisciplinary nature of OB creates many problems. A manager cannot be trained in
all disciplines. So, no manager can be the master of the subject. Insufficient knowledge
may multiply problems.
➢ Experts opine that OB is too sophisticated to use in real practice. In fact, it is more
complex and costly to use.
➢ It is claimed that OB may be a source of exploitation of employees.

➢ It has been argued that knowledge of OB is neither sufficient nor up-to-date. The
knowledge is yet in its childhood. To analyse and understand man, more divergent
knowledge is required.
➢ Application of OB does not guarantee absence of conflict, job satisfaction, and quality of
life. In some cases, tha manager who knows nothing about OB can run the organization
better.
➢ OB is relatively young discipline. More intensive and worldwide research is needed to
enhance its non-controversial use and applicability.
1.8. Emerging Challenges in Organisational Behavior:
➢ Complex human being
➢ Humanistic and anti-humanistic approaches to employees
➢ Small and large companies (size diversities)
➢ Development of Information technology
➢ Ethical erosion worldwide
➢ Rapid globalization
➢ Economic crisis
➢ Instable and inadequate OB knowledge
➢ Natural terror (disasters)
➢ Spread of terrorism
➢ Open system organisations
➢ Workforce diversities
➢ Gender issue
➢ Cultural diversities or different workplaces

UNIT II: Personality – types – Factors influencing personality – Theories – Learning –

Types of learners – The learning process – Learning theories – Organizational behaviour
modification. Misbehavior – Types – Management Intervention. Emotions - Emotional
Labour – Emotional Intelligence – Theories.
2.1. Personality – Meaning, definition and types

Personality has been derived from the Latin word “persona” which means “mask” used by the
actors to change their appearance. It is the combination of an individual thoughts, characteristics,
behaviors, attitude, idea and habits.
Personality is the product of social interaction in group life. In society every person has different
traits such as skin, color, height and weight. They have different types of personalities because
individuals are not alike. It refers to the habits; attitudes as well as physical traits of a person
which are not same but have vary from group to group and society to society.
2.1.1. Definitions:
Macionis define personality as “It is the constant pattern of thinking, feeling and acting.”

Ogburn and Nimkoff define it as “the totality of sentiments, attitudes, idea, habits, skills and
behaviors of an individual.”
Fred E Luthans: “Personality means how people affect others, and how they understand and
view themselves. It also involves their pattern of inner and outer measurable traits and person-
situation interaction.”
Stephen Robbins and Seema Sanghi: “Personality is the sum total of ways in which an
individual reacts and interacts with others.
2.1.2. Characteristics of Personality:
a) Personality is the sum total of aggregate of qualities of a person.
b) It is one of the determinants of individual behaviour.
c) It contains a stable set of characteristics or qualities. They cannot be changed easily.
d) It can be determined in relation to specific activities, situation, or work.
e) It is distinctive way of responding to any stimuli or situation.
f) It seeks adjustment.
g) It is complex and multidimensional construct that is difficult to understand and analyse.
h) It is partially measurable.
i) It can be developed through learning.
j) It has two-way impact.
2.1.3. Types of Personality:
Following are the three types of personality
1. Extrovert Personality
This type has the tendency to live mostly outside the like to live with others. Those individuals
are highly socialized and have contact with outside people in the society. They want to join other
groups who are more in number. These type of people are drivers, excessive drinkers, smokers,
robbers, thieves, wicked persons etc.
2. Introvert Personality
Introvert is opposite to extrovert. Those people are always live alone in their rooms and do not
want to go outside. They have their own imaginary world. They are teachers, scientists, thinkers
and philosophers.
3. Ambivert Personality
Between extrovert and introvert personalities there is a third one type called ambivert. People
belonging to this type enjoy both the groups and attend them. They have middle mind and want

to live in both parties. Sometimes they join outside people but sometimes they live in their own
rooms.
2.2. Factors influencing personality
2.3. Theories of Personality

2.3.1. Psychological Theory: Main contributors to psychological theory were Sigmund Freud,
Carl Jung and Alfred Adler and others. In this theory, Sigmund’s contribution has remained
significant. He concluded that unconscious framework motivates man to act in a particular way.
Unconscious framework contains three interrelated aspects.
a. The Id: Id is a source of psychic energy. It is said to be unconscious part of human personality.
It seeks satisfaction of biological needs, such as hunger, thirst, sex, etc. Id assumes that human
tries to remove tension by satisfying biological needs through forming a mental image of the
object. The Id concept seems more illusionary. It is a spontaneous response to stimuli.
b. The Ego: Ego is self-centric explanation related to ‘I’, ‘My’, or ‘self’. It is psychological
construct of thinking about oneself. As against the Id, it is conscious and logical part of human
personality as it is based on realities of external environment. Ego is directed to get real pleasure
by accepting reality. It is deliberate response to the stimuli.

c. Super Ego: Super ego is based on personal and social values, norms, and ethics. Super ego
judges the behavior or action as right or wrong in relation to a given situation. It is ethical part of
human personality. It guides reaction pattern. It is ideal/desirable response to the stimuli.
Psychological theory provides a base to explain human personality. But it lacks scientific base
and has failed to provide adequate explanation for personality. Moreover, it does not consider
social factors.
2.3.2. Socio-psychological Theory: Main contributors to this theory include Alder, Fromni,
Horney, and others. Psychological characteristics of a person are affected by social environment.
Thus, social environment shapes one’s personality. The individual and society cannot exist in
isolation. The theory emphasizes on following social aspects that shape one’s personality.
i. Building social relations
ii. Making social relevant work
iii. Viewing people positively
iv. Developing positive attitudes
v. Career planning and networking
vi. Balancing between work and life
vii. Developing interpersonal skills
The theory assumes that social and psychological needs play an important role in shaping
personality.
2.3.3. Trait Theory: Alport and Cattell contributed to the trait theory. Traits are basic
characteristics or qualities of people. Some common traits are used to compare or distinguish
people. Allport identified six types of values/traits that go into personality construct.
i. Religious traits or values
ii. Social values
iii. Economic values
iv. Political values
v. Aesthetic values
vi. Theoretical values
Cattell developed same types of traits, but he classified them into two groups, surface traits and
source traits. Individuals hide their feelings and exhibit desirable traits.

2.3.4. Holistic Theory: This theory treats an individual as a whole. It is based on self-concept. It
is also known organismic theory or self theory. Carl Roger, Abraham Maslow, Frederic Herzberg
and Lewin were the main contributors of this theory. The theory consists of four factors related
to self-concept (that affect personality):
1 Self-image: self image is how a person believes about himself. It is a set of beliefs about
oneself. It answers who/what is he?
2. Ideal self: it shows an ideal or expected conduct. It shows the one likes to be. It answers what
he ought to be?
3. looking glass-self: it is belief of a person about how others perceive his characteristics and
qualities.
4. Real Life: this is reality concept. It shows what one actually is. It shows what one actually is.
It indicates real characteristics, values and attitudes. One adjusts with himself based on others’
response and environmental demand.
Self concept helps a person to understand himself, others, and other things. The concept is vital
for perception, personality and overall behavior.
Personality and OB: Personality is one’s unique way of influencing or impressing others.
Organisation is deliberate creation of structure to achieve specific ends; and organizational
behavior is a science that helps one to manage behavior.
Personality Profiles affect resulting behaviour
Locus of Control Self-Monitoring Abilities

Personality Profile
• Type A Personality profile
• Type B Personality Profile
Situations/Inputs Resulting Behaviour

1. Organisational
SANJEEV DEGREE COLLEGE, KAKINDA 1. Behavior Predictability Page 17
Structure 2. Work Performance
2. Leadership style 3. Healthy relations
3. Communication 4. Stress Control Ability
Network 5. Cooperation and Competition
2.4. Learning and Types of Learning

Learning Definitions:
“Learning is any permanent change in behavior that occurs as a result of experience.”
- Stephen Robbins and Seema Sanghi.
“Learning means acquisition of knowledge, skills, ability, expertise, etc., through study,
experience, and practice that result into long-term change in one’s behavior.”
Characteristics of Learning:
• Psychological process
• Outcome of past experience
• Change in behavior
• Conscious and deliberate
• Need of Reinforcement
• Permanent change
• Experience plus practice
• Input in other cognitive processes (Perception, Personality, motivation and attitudes)
Principles of Learning:
Principles are facts related to learning. Psychologists have identified some truths to explain how
learning takes place. Most principles have been derived from classical and operant theories of
learning. Important principles are:
1. Principle of acquisition: principle of acquisition suggests that people follow different patterns
of acquiring new behavior depending on the situation. The principle works under five types of
conditions/ situations
a. Different tasks and different patterns of acquisition.
b. Different tasks and same patterns of acquisition
c. Same task and same patterns of acquisition
d. Same task and different patterns of acquisition

e. Same or different tasks and different degrees of improvement
Experts on the area explain the principle with the help of four general types of learning curves;
a. Decreasing return curve
b. Increasing return curve
c. S Learning curve
d. Learning Plateau
2. Principle of Extinction: The principle states that conditioned (learned) response weakens if it
is not reinforced, and ultimately, it tends to extinction.
3. Principle of Spontaneous Recovery: Principle of spontaneous recovery states that people
follow non-reinforced conditioned response (i.e., prefer to extinguish non-reinforced behavior),
take rest for certain time, and then tend to return to conditioned response more intensively even
though no reinforcement has taken place.
4. Principle of Generalisation: Generalisation suggests that a new stimulus and the original
stimulus are responded to in the same way. It implies the same response to different stimuli. If
the new stimulus is similar to the conditioned stimulus, it will also produce the conditioned
response.
5. Principle of Discrimination: principle of discrimination is opposite to the principle of
generalization. The principle implies different response to similar stimuli.
6. Principle of Reinforcement: Reinforcement is anything that strengthens the response and tends
to induce repetition of behavior. Reinforcement is an important principle of learning. Desirable
consequences (reinforcement) of the learned behavior increase the strength of response, and also
increase possibility of being repeated in the future, and vice versa.
2.5. Learning process

2.6. Learning theories

Learning theories are an organized set of principles explaining how individuals acquire, retain,
and recall knowledge. By studying and knowing the different learning theories, one can better
understand how learning occurs. The principles of the theories can be used as guidelines to help
select instructional tools, techniques and strategies that promote learning.

Classical or Respondent Conditioning

Classical conditioning is stimulus and response (S-R) theory of learning. the theory was
developed by Ivan Pavlov, a famous Russian psychologist. He conducted an experiment on a dog
to find out how learning occurred.
1 2 3
Conditioned Learning - New or

Respnse
Stimulus (S) Learned Behaviour
Learning Process
The theory implies that human being responds to learned stimuli. It is assumed that behavior can
be learned by repetitive association between stimulus and response (S-R). If anything is to be
repeated, reinforcement can be acquired.
Behaviorism (Operant Conditioning)
Behaviorism stems from the work of B.F. Skinner and the concept of operant
conditioning. Behaviorism theorists believe that knowledge exists independently and outside of
people. They view the learner as a blank slate who must be provided the
experience. Behaviorists believe that learning actually occurs when new behaviors or changes in
behaviors are acquired through associations between stimuli and responses. Thus, association
leads to a change in behavior.
Learning process
The learning process is based on objectively observable changes in behavior. Behavior theorists
define learning simply as the acquisition of a new behavior or change in behavior. The theory is
that learning begins when a cue or stimulus from the environment is presented and the learner
reacts to the stimulus with some type of response. Consequences that reinforce the desired
behavior are arranged to follow the desired behavior (e.g. study for a test and get a good
grade). The new behavioral pattern can be repeated so it becomes automatic. The change in
behavior of the learner signifies that learning has occurred. Teachers use Behaviorism when
they reward or punish student behaviors.
Cognitive Information Processing (Cognitivism)
Cognitive information processing is based on the thought process behind the behavior. The
theory is based on the idea that humans process the information they receive, rather than merely
responding to stimuli (i.e. that think about what is happening). The changes in behavior are
observed, but only as an indicator to what are going on in the learner’s head. The learner’s mind
is like a mirror from which new knowledge and skills will be reflected.
Cognitive information processing is used when the learner plays an active role in seeking ways
to understand and process information that he or she receives and relate it to what is already
known and stored within memory. Cognitive learning theories are credited to Jean Piaget.
Learning process
Cognitive learning theorists believe learning occurs through internal processing of
information. Unlike behaviorism, cognitive information processing is governed by an internal
process rather than by external circumstance. The cognitive approach to learning theory pays
more attention to what goes on inside the learner’s head and focuses on mental processes rather
than observable behavior. Changes in behavior are observed, and used as indicators as to what
is happening inside the learner’s mind.
Learning involves the reorganization of experiences, either by attaining new insights or changing
old ones. Thus, learning is a change in knowledge which is stored in memory, and not just a
change in behavior.
Constructivism (Observational Learning)
Constructivism is based on the premise that we all construct our own perspective of the world,
based on individual experiences and internal knowledge. Learning is based on how the
individual interprets and creates the meaning of his or her experiences. Knowledge is
constructed by the learner and since everyone has a different set of experiences and perceptions,
learning is unique and different for each person.
Learning Process
Constructivist theorists believe that learning is a process where individuals construct new ideas
or concepts based on prior knowledge and/or experience. Each of us generates our own mental
models, which we use to make sense of our experiences. We resolve conflicts between ideas and
reflect on theoretical explanations. Learning, therefore, is simply the process of adjusting our
mental models to accommodate our new experiences.
This theory is used to focus on preparing people to problem solve. Therefore, to be successful,
the learner needs a significant base of knowledge upon which to interpret and create
ideas. Additionally, with Constructivism, outcomes are not always predictable because learners
are constructing their own knowledge. Thus Constructivism does not work when the results
always need to be consistent.
2.7. Organizational behavior modification

“OB Mod is a programme where managers identify performance related employee behaviours
and then implement an intervention strategy to strengthen desirable behaviour and weaken
undesirable behaviours.” – Stephen P Robbins
“OB Mod is the systematic reinforcement of desirable work behaviour and the non reinforcement
or punishment of unwanted work behaviour. It includes four basic reinforcement strategies.
Positive reinforcement, negative reinforcement, punishment and extinction” - Schermerhorn,
Hunt and Osborn
2.7.1. Steps in OBM:
1. Identification: The first step in the OB Mod is identification of performance related

behaviours. First of all the behaviour should be identified as desirable or undesirable from the
point of view of the organisation. Then in the next stage, critical behaviours, that have significant
impact on the employees’ performance, should be given due attention. The critical behaviours
can be identified through discussions with the particular employee and his immediate superior as
both are closely intimated with the job behaviours.
Some of the critical behaviours which affect job performance are absenteeism or attendance,
tardiness or promptness, complaints or constructive criticism, listening to or not listening to the
instructions, etc. If such behaviours are modified, good results could be expected. Due attention
should be given to the critical behaviour because they get repeated again and again.
2. Measurement: After the critical behaviours of the employees have been identified, the next
step for the manager is to measure the frequency of the critical behaviour over time. The
measurement can be done by observation and by extraction of information from records. If the
frequency is within the acceptable limit, it will require no action, but if it exceeds the acceptable
limit, it will need immediate attention. The measurement of behaviour will also help the
managers in determining the success in changing the employees’ behaviour.

3. Analysis: At the next step, the managers will have to do a functional analysis of the behaviour
that requires modification. This analysis will determine what circumstances lead to a particular
type of behaviour, what are the consequences of such behaviour etc. Contingent consequences of
behaviour should be identified because these consequences have impact on subsequent
behaviour. Moreover, some contingent consequences appear to be affecting the critical behaviour
on the surface only, the functional analysis should try to find out the competing contingencies for
every behaviour also.
4. Intervention: Once the critical behaviours have been identified and the circumstances which
cause such behaviours have been determined, the next step will be to develop an effective
intervention strategy. There are several strategies that can be used at this stage. These include
positive or negative reinforcement, extinction or punishment.
The use of a particular strategy will depend upon the type of situation faced. After developing
and implementing a particular strategy, the frequency of resulting behaviour is measured. If a
behaviour change has occurred in the right direction, the manager will select a reinforcement
schedule that will maintain the desired behaviour.
5. Evaluation: The last stage in OB Mod is the evaluation whether the intervention strategies are
working properly or not. The basic purpose of OB Mod is to bring change in undesirable
behaviours so as to improve performance. Evaluation will reveal whether the undesirable
behaviours have been substituted by desirable behaviour or not. If there has been a change in
behaviour, whether it is permanent or just temporary. Further, the evaluation will also show
whether there is improvement in the performance or not. If there is a positive change, it suggests
that the interventions are successful. However, if the change is not significant, it may call for
adoption of alternate and more appropriate strategies.
Utilities of OB Modification:
OB Mod has been applied successfully in many organisations, service as well as manufacturing,
to improve organisational effectiveness and understand human behaviour in organisations. It is
an important technique of human resource management.
The major strengths and utilities of OB Mod are as follows:
1. Can be Put to Testing
2. Development of Employees
3. Control and Regulation of the Employees’ Behaviour
4. Easy to Understand and Use

2.8. Misbehavior – types of misbehavior

ORGANISATIONAL misbehaviour is defined as ‘anything you do at work that you are not
supposed to do’. It is also often identified as behaviour that is unacceptable to management and
may significantly disrupt its functioning. Organisational misbehaviour is voluntary and
committed by choice. The intention to misbehave is defined as behaviour exhibited by an
individual or group that is purposeful and can be harmful to a person, the work group, or the
organisation.
More often than not, individuals engage in organisational misbehaviour due to three reasons —
either to benefit the individual, to benefit the organisation, or with the intention to damage and
hurt a particular individual, organisation asset or social unit.
2.8.1. Types of Misbehaviour:
An examination of a broad range of instances of norm violating behaviors would suggest that all
such actions can be classified into three basic types in terms of the underlying intention of the
misbehaving individual.
(a) Misbehaviors that are intended to benefit the self (OMB Type S). These misbehaviors are
mostly internal to the organization, and usually victimize the employing organization or its
members. Thus, such behaviors may have three categories of internal targets:
(1) The work itself (e.g., distorting data); (2) the organization's property, resources, symbols or
regulations (e.g., stealing and selling manufacturing secrets); and (3) other members (e.g.,
harassing peers).
An exception to the above is a behavior by a member that appears to benefit the organization
(e.g., overcharging customers), but is, in fact, intended to eventually benefit the individual (e.g.,
gaining a promotion).
(b) Misbehaviors that primarily intend to benefit the member's employing organization as a
whole (OMB Type O). Those misbehaviors (e.g., falsifying records in order to improve chances
of obtaining a contract for the organization), are mostly external in nature, usually directed
toward outside "victims" such as other organizations, social institutions, public agencies, or
customers. If the intention underlying this form of behavior is not primarily to benefit the
organization, but is self-serving (e.g., for career considerations), it should not be classified as
OMB Type O. More likely, this would be OMB Type S.
(c) Misbehaviors that primarily intend to inflict damage and are destructive (OMB Type D).
Targets of these behaviors could be as listed above, both internal and external. Whereas the

intentions underlying Type S and Type O misbehaviors are to benefit either the individual or the
organization, the intention behind OMB Type D is to hurt others or the organization. Such
intentional misbehaviors (e.g., sabotaging company-owned equipment) may be perpetrated by
members either on their own initiative (e.g., as a revenge or a response to perceived or actual
mistreatment), or on behalf of "significant others" (e.g., interfering with organizationai
operations to comply with Union's expectations). However, the underlying intention must be to
cause some type of damage whether minor or considerable, subtle or visible.
2.8.2. OMB manifestations:
Manifestations of OMB are categorized as:
(a) Intrapersonal misbehavior (e.g., workplace problem drinking, drug abuse, workaholic
behavior),
(b) Interpersonal misbehavior (e.g., incivility, aggressive behavior, bullying, sexual harassment),
(c) production misbehavior (e.g., rule breaking, loafing, absenteeism, tardiness),
(d) Property misbehavior (e.g., vandalism, theft, espionage, computer hacking), and
(e) Political misbehavior (e.g., misuse of power, impression management, politicking,
favoritism).
2.9. Intervention of management in misbehavior
This framework posits four key points of intervention along the OMB process by which the
organization may act to lower the probability of organizational misbehavior occurring (thus
minimizing costs and other negative consequences). These four action levers differ with respect
to their focus, and hence, call for different kinds of interventions. One important implication
derived from this perspective is that one should think of the management of OMB not as a linear
but as an iterative process (i.e., dynamic, repetitive, ongoing). Furthermore, the organization may
apply a preventive strategy (i.e., try to prevent OMB) or a responsive strategy (react to
identifiable OMB), or both. The key issue is, “To what extent does the intervention succeed in
lowering the level and frequency of the misbehavior?”
In order to cope with organizational misbehavior, one must be familiar with the dynamics of the
phenomenon. That is, management needs to gain an understanding of why employees intend to
misbehave. Management should also be aware of the organizational forces that influence
(increase or decrease) the intention to misbehave, and what are the possible expressions and
costs that are to be expected. It is, however, important to keep in mind that there are possible

beneficial as well as adverse consequences of the intervention(s) designed to control these

behaviors.
Organizations differ in their goals, values, culture, rules, norms, and design, as well as in their
control systems and the built-in opportunities they provide their members to misbehave.
Similarly, employees differ in their personality traits, personal needs, attitudes, intentions, and
desires. Thus, the varieties of possible forms of misbehavior, as well as the ways to confront
them, make it impossible to cover the whole range of possible antecedents and expressions of
OMB and to develop and implement a generic solution.
OMB interventions means any planned action taken by the organization in order to cope (i.e.,
prevent, control and/or respond) with organizational misbehavior with the intention of reducing
the probability, frequency, scope, and costs. The model suggests four points of intervention, in
which the organization may attempt to intervene and lower the possibility of organizational
misbehavior taking place. These phases are marked A, B, C, and D.
Phase A: Pre-employment
At this stage, interventions can be designed to prevent misbehavior from occurring in the first
place or to alter the existing antecedents to prevent misbehavior. Use of selection techniques and
careful job design/redesign methodologies are two examples for such interventions. The goal at
this stage should be keeping potential OMB-related antecedents out of the organization. Such
tactics may sometimes be problematic, as with the case of a job that requires assertiveness (e.g.,
sales people)—a personality trait that is arguably desirable, yet not too dissimilar and not easily
differentiated in the selection stage from aggressiveness, which might lead to violent behavior on
the job.
Phase B: Socialization
The intention formation stage (the antecedent — intention transition or phase B) calls for two
axes of intervention: one that is aimed at affecting the normative force and one that is aimed at
affecting the instrumental force. In both cases, the goal is to lower the possibility of a given
antecedent(s) to trigger the intention to misbehave. In other words, interventions at this stage
need to enhance the identification of the sense of wrongdoing within the individual—the
understanding that, for example, stealing is wrong, or that violence is not the solution—while at
the same time reducing the instrumental motive to misbehave (“If I am caught stealing I might
get fired”).

An intervention at this point may address a specific antecedent (e.g., personal attitudes, built-in
opportunity) or, assuming that the antecedents have a common denominator(s), be designed to
address one or more of the four possible levels of antecedents (i.e., individual, task/position,
group or organization). For example, job redesign may reduce the built-in opportunity to
misbehave (i.e., reduce the instrumental force) while a system-wide effort to disseminate,
communicate, and implement a non misbehavior policy (i.e., cultural change) throughout the
organization may reduce the normative force. Some interventions may influence both normative
and instrumental forces: a formal mentor-ship program, for example, may help communicate
values of proper conduct to newcomers (normative), as well as the possible sanctions facing
misbehavior (instrumental).
Phase C: Behavior Control
The focus of intervention at this stage shifts from prevention to deterrence. That is, from
reducing the likelihood of the intention to misbehave to arise to actively reducing the probability
of this intention of turning into an action. Naturally, reward, control, and sanction systems,
which may deter employees from carrying out their intentions because of fear of the associated
punishment, play a major role. Consider the use of tracking devices (control) combined with use
of bonuses and employee stock options (rewards). An embittered employee may not choose to
misbehave if he knows that he is being closely monitored and that if caught he may lose a bonus
or, in more serious cases, his job.
Phase D: Corrective Measures
Interventions in point D (expressions — costs transition) have three goals: (a) minimizing the
costs of the misbehavior, (b) restoring the damage, and (c) providing assistance (to both
perpetrators and targets). Hence, periodical drug tests, for example, may help in identifying
substance abuse, thus lowering the rate of accidents on the job. The substance abusers can
participate in rehabilitation programs. Similarly, employee assistance programs (EAPs) for
victims of violence or sexual harassment may contribute to their early return to work while
reducing the possibility of second-order misbehavior perpetrated against their assessor(s) or a
third party. It may reduce the possibility that the victims might sue their employer. As in point A,
interventions at this stage may address a specific expression (e.g., theft, sexual harassment) or,
assuming a common denominator(s), one or more of the five categories of expressions (i.e.,
production, property, interpersonal, intrapersonal, and political misbehavior). Hence, sanctions
may reduce future absenteeism, while team-building interventions can be designed to cope with

high levels of observed interpersonal misbehavior (e.g., aggression, bullying, withholding

information, lack of cooperation) associated with a specific group or team within the
organization.
OMB management and interventions for its control are as follows:
▪ First, OMB management is a dynamic, ongoing process, similar to the other conventional
practices of administration and development, and is, in fact, part of it.
▪ Second, there is no panacea for organization misbehavior; there is no one-size-fits-all
remedy for OMB. Control mechanisms for its reduction need to be based on the specific
needs of the organization, the members, and the organizational context. That is, the
general phenomenon of OMB needs to be carefully analyzed and its components
(antecedents and/or expressions) must be clarified and understood before designing and
applying any interventions.
▪ Third, there are four main points of intervention through which the organization may
attempt to control OMB. The intervention points differ in relation to their focus, yet the
general purpose of all OMB interventions should be minimizing (i.e., weakening) the
relationships between antecedents, mediators, expressions, and consequences of the OMB
cycle, with the intention of preventing undesirable behaviors (just as organizational
change efforts are designed to enhance desirable ones). Obviously, some interventions or
mechanisms may be used in more than one point throughout this process, and different
interventions may be applied simultaneously. For example, in a transportation company
whose drivers were involved in accidents (costs) due to substance abuse (expression), it
may be wise to establish periodic drug testing programs and send substance abusers to
rehabilitation programs (phase D interventions). Also, new employees should be tested
for substance abuse prior to hiring, as part of the selection process (phase A
interventions). A successful coping strategy calls for the simultaneous application of a
combination of interventions, at different stages.
▪ Fourth, for OMB interventions to be effective, they should be designed so that the
employees perceive them as legitimate and justified. Perceived lack of fairness may lead
to more severe forms of misbehavior in reaction to the imposed sanctions. This leads to
the assertion that OMB interventions, like other managerial practices, need to be
constantly assessed for efficiency and effectiveness relative to their goals.

▪ Finally, while designing interventions, managers should consider the possibility that an
intervention—be it because of faulty design, improper application, or
inappropriateness—may have undesired effects and may even trigger misbehavior.
2.10. Emotions and emotional labour
Arlie Hochschild created the term 'emotional labor' in 1983 to describe the things that service
workers do that goes beyond physical or mental duties. Showing a genuine concern for
customers' needs, smiling, and making positive eye contact are all critical to a customer's
perception of service quality. These types of activities, when they're essential to worker
performance, are emotional labor.
Emotional labor is the regulation of felt and expressed emotions at work in the service of
organizational goals. The construct of emotional labor is traced to the seminal work of
sociologist Arlie Hochschild, who studied the work of airline flight attendants and, specifically,
the strategic use of emotion by flight attendants to create a desired experience for passengers.
Her research revealed that the work role of flight attendants involved much more than the
obvious duties of serving drinks and meals and ensuring passenger safety and comfort. Their job
role also included the expression of emotions and the creation of feeling states in others; they
were required to act friendly and upbeat to make passengers feel safe, happy, and comfortable.
The significance of this early work is that it highlighted the fact that the management of
emotions is an important organizational phenomenon, it is an effortful process for employees,
and it may affect employee well-being.
Jobs that require emotional labor typically are those that
(a) Involve direct contact with the public,
(b) Require the employee to use emotions to produce an emotional state in another person, and
(c) Allow the organization to exert some control over the felt and/or displayed emotions of
employees.
Customer service jobs are those most typically associated with high demands for emotional
labor. Service employees spend a great deal of time interacting with the public. Part of their job
is to produce an emotional state such as happiness or delight in the customer, because with
services, much of what the customer is evaluating is intangible. As such, the customer’s affective
experience becomes part of his or her evaluation of the organization and its product. Finally, the
organization exerts some control over the customer service agent’s emotional display.

Employees are often trained on the types of emotions to display, and this behavior is enforced by
peers, management, and customers.
Emotional labor is relevant; however, too many jobs that fall outside typical ideas of service
work, and not all emotional labor is the management and display of positive emotions. Bill
collectors and police detectives manage and display negative emotions to produce anxiety, fear,
and compliance in debtors and suspects. Funeral directors display warmth and sadness in their
job roles. And physicians engage in emotional labor by suppressing negative emotions to display
the neutrality required of their jobs. In all of the above cases, the employee ultimately is
managing his or her displayed emotions: expressive behavior including, but not limited to, facial
expressions, vocalizations, and posture. This expressive behavior communicates important
information to the receiver and can be viewed as a control move, an intentional means of
manipulating the situation to produce a desired response in the receiver. Emotional labor is, as
such, a tool of influence: it is intended to produce responses in others that are favorable to the
individual and/or the organization.
2.10.1. Types of emotional labour
According to the theory behind “emotional labor,” there are two different types:
• Surface acting – Faking emotions or “putting on a mask” to display the “correct”
emotions at work, even if they don’t align with how you actually feel about the job.
• Deep acting – Modifying your inner beliefs and feelings about the job to align with
emotions that the job requires.
The difference between “surface acting” and “deep acting” can make all the difference in your
job satisfaction. When an individual’s emotions align with their work (“deep acting”), this
typically leads to less stress and greater happiness at work. But when an individual’s emotions
have to be faked (“surface acting”), this typically leads to more stress, increased burnouts,
emotional exhaustion, and sometimes even depression.
2.10.2. Aligning emotions at work
1. Recognize the value in your work.
2. Focus on aspects of the job.
3. Doing the small things to minimize stress.
4. Improving relationships
5. Finding healthy ways to express negative emotions
2.11. Emotional intelligence

Emotional intelligence refers to the capability of a person to manage and control his or her
emotions and possess the ability to control the emotions of others as well. In other words, they
can influence the emotions of other people also.
Emotional intelligence can best be described as the ability to monitor one's own and other
people's emotions, to discriminate between different emotions and label them appropriately, and
to use emotional information to guide thinking and behavior.
Difference between EQ and IQ:
Emotional Quotient (EQ) is a way to measure how a person recognizes emotions in himself or
herself and others, and manages these emotional states to work better as a group or team.
Intelligence Quotient (IQ) is a value that indicates a person's ability to learn, understand, and
apply information and skills in a meaningful way. The major difference between EI and IQ is
what part of a person's mental abilities they measure: understanding emotion or understanding
information.
2.12. Theories of emotional intelligence
The study of EI developed through the area of cognition and affect, looking at how emotion
affected thought. Initially it was believed that emotion had a detrimental effect; however, in time
it was considered that emotion could also be adaptive to thought (Mayer, 2000) and that they
could complement each other. Mayer and Salovey (1990) developed their first theory of EI,
which subsequently became popularized by Goleman (1996). Goleman proposed that EI was
integral for life success. Since then, several theories have emerged with conflicting views, and
subsequently, different measures.
According to Salovey and Mayer, There are three main models of Emotional Intelligence:
1. Ability model:
Perceiving Emotions: The first step in understanding emotions is to accurately perceive them. In
many cases, this might involve understanding nonverbal signals such as body language and facial
expressions.
Reasoning with Emotions: The next step involves using emotions to promote thinking and
cognitive activity.
Understanding Emotions: The emotions that we perceive can carry a wide variety of meanings. If
someone is expressing angry emotions, the observer must interpret the cause of their anger and
what it might mean.

Managing Emotions: The ability to manage emotions effectively is a key part of emotional
intelligence. Regulating emotions, responding appropriately and responding to the emotions of
others are all important aspect of emotional management.
2. Mixed models:
Five factors of Mixed model are
• Self awareness
• Self Regulation
• Motivation
• Empathy
• Social skills
Self awareness: The ability to recognize emotion and mood. The major elements of self-
awareness are
Emotional awareness: Ability to recognize one’s own emotions and their effects.
Self-confidence: Sureness about one’s selfworth and capabilities.
Self Regulation Control on your mood or emotion. Self-regulation involves:
Self-control: Managing disruptive impulses.
Trustworthiness: Maintaining standards of honesty.
Conscientiousness: Taking responsibility for your own performance.
Adaptability: Handling change with flexibility.
Innovation: Being open to new ideas.
Motivation: To motivate someone for any achievement requires clear goals and a positive
attitude. Motivation is made up of:
Achievement drive: A person’s constant striving to improve or to meet a standard of excellence.
Commitment: Aligning with the goals of the group or organization.
Initiative: Readiness to act on opportunities.
Optimism: Pursuing goals persistently despite obstacles and setbacks.
Empathy The ability to recognize how people feel is important to success in your life and
career. An empathetic person excels at:
Service orientation: Anticipating, recognizing and meeting clients’ needs.
Developing others: Sensing what others need to progress.
Leveraging diversity: Cultivating opportunities through diverse people.
Political awareness: Reading a group’s emotional currents and power relationships.

Understanding others: Discerning the feelings behind the needs and wants of others.
Social skills The development of good interpersonal relationships.
Influence: Wielding effective persuasion tactics.
Communication: Sending clear messages.
Leadership: Inspiring and guiding groups and people.
Change catalyst: Initiating or managing change.
Conflict management: Understanding, negotiating and resolving disagreements.
Building bonds: Nurturing instrumental relationships.
Collaboration and cooperation: Working with others toward shared goals.
Team capabilities: Creating group to achieve collective goals.
3. Trait EI model:
Trait EI is "a constellation of emotional self perceptions located at the lower levels of
personality. In lay terms, trait EI refers to an individual's self-perceptions of their emotional
abilities. Trait EI should be investigated within a personality framework.
As trait EI is concerned with cross-situational consistencies in behaviour, which are perceived as
"traits" as opposed to ability EI, which focuses on actual skills, it is
Accessed via self-report questionnaires that measure typical behaviour. Initially, the Bar-On
Emotional Quotient Inventory (EQ-i) (Petrides & Furnham, 2001) and, more recently the Trait
Emotional Intelligence Questionnaire (TEIQue) (Petrides, Furnham & Frederickson, 2004). The
TEIQue consists of 153 items organised under four-factors, which are well-being, self-control,
emotionality, and sociability (Freudenthaler et al, 2008). Relying on a person's self-awareness,
self-report measures are accurate if the person's self-concept is accurate. However, if the person's
self-concept is inaccurate, a self-report measure may result in the measurement of the individuals
self-concept and not the true behaviours and attitudes of them.
The concept of trait EI has also been criticised as focusing heavily on established personality
taxonomies. The self-report methodology has been criticised for high loadings with personality
characteristics, poor reliability and the small number of reverse keyed items respectively.
4. Emotional Intelligence Theory by Daniel Goleman:
Daniel Goleman, (2002), A psychologist who helped make the idea of EI popular, presented the
concept of Emotional Intelligence as being encapsulated by four elements:
• Self Awareness
• Self Management

• Social Awareness
• Social Skills
1.Self-awareness: The first
element of Emotional
Intelligence theory – Being self
aware means that you
understand you. – You
understand what makes you tick
and therefore, your strengths and
weaknesses as a person, and a
Leader. You can then start to
understand why you feel, and
what makes you feel. “Is this a
good emotion, or should I feel a different way?” If you understand your emotions, you can
identify their impact to you and those in your team. It is a path on the road to having humility,
which is a much needed facet in Leadership.
2. Self-Management: The second element of Goleman’s Emotional Intelligence theory: –
Through being in control of what you say and do, whilst rejecting the temptation to make rushed
decisions, you can be in charge of your actions and therefore reducing the chance of
compromising your values. Other aspects to nurture in this element are to show and actively
apply conscientiousness, trustworthiness, Leading and adapting to change, complete drive to
succeed and the initiative to think fast and act creatively and innovatively to solve problems.
3. Social Awareness: The third element of Emotional Intelligence Theory: Social awareness is
the ability for a Leader to understand the emotions of the team members around them and to get
a good comprehension of their emotional makeup. The ability to treat people according to these
emotional reactions is vital. This area is linked to empathy: The ability to understand and see
things in other peoples view points, expertise in building and retaining talent, valuing diversity
and appreciating the organisational goals. In essence this part of emotional intelligence then, is
about understanding and being truly in touch with the complete demands of the environment and
acting to suit those conditions.
4. Social Skills: The fifth and final element from Goleman’s emotional intelligence theory,
which links Leadership and Emotional Intelligence together: Leaders with good Social Skills are

often very good communicators. Leaders who are good in this discipline are also good at conflict
resolution and communicating the vision to team members, enlightening them and creating
motivation and inspiration throughout the team. They are experts at getting their team to support
them and also believe in their leadership. They set the example, for others to follow by
demonstrating the acceptable behaviours and values.
Unit-III: Attitudes – Characteristics – Components – Formation – Measurement- Values.

Perceptions – Importance – Factors influencing perception – Interpersonal perception
Impression Management. Motivation – importance – Types – Effects on work behavior.
3.1. Attitudes and Characteristics of attitudes:

Attitudes are important part of personality. They form cognitive judgment that affects one’s
perception, learning, motivation and personality. Attitudes are one of the powerful factors
determining individual response toward any stimulus. Response depends on learned preferences
and interest. Attitude is cognitive aspect that always remains inside the person. We cannot see
attitude but can see behavior that is triggered by it.
Fred E Luthans: “An attitude is a persistent tendency to feel and behave in a particular way
towards some objects.”
G W Allport: “Attitude is mental and neural state of readiness, organized through experience
exerting specific directive influence upon the individual’s response to people, objects and
situations with which it is related.”

Stephen Robbins: “Attitudes are evaluative statements – either favourable or unfavourable –

concerning objects, people, or events. They reflect how one feels about something.”
3.2. Components of attitudes
i. Attitude is abstract phenomenon that cannot be seen.
ii. It is evaluative in nature. It is expressed in terms of desirability.
iii. It indicates readiness tendency of an individual to react in a specific way.
iv. Attitude and value are different. (values are input in attitudes)
v. It indicates predisposition.
vi. It is most pervasive as people have attitudes about many topics that are related to them.
Attitude can help predict work behavior.
vii. It is complex psychological structure as it is determined by number of variables.
viii. It varies in direction, intensity and extent of consciousness.
ix. Attitude is related to needs.
x. Attitudes are learned or acquired.
3.3. Formation and measurement of attitudes and values
3.3.1. Formation of attitudes: A person evaluates certain things in particular way due to the set of
his attributes. Attitudes can be shaped, changed, replaced, or modified by a number of factors.
Most common factors are:
a) Experience
b) Association and reference groups
c) Family
d) Society
e) Personality
f) Culture and religious values
3.3.2. Values – Meaning and definition:
“Values are basic convictions that a specific mode of conduct or end-state of existence is
personally or socially preferable to an opposite or converse mode of conduct or end-state of
existence.”
“Values are culturally imported, social approved, and religiously sactioned preferable behavior.”
Types of Values: Milton Rokeach has classified values into two groups, terminal values and
instrumental values.

Terminal Values: Terminal values refer to desirable end-states (outcomes). These values are the
goals the person desires to achieve in his life.
Instrumental Values: instrumental values refer to preferable modes of behaviour to realize the
terminal values. They are means or instruments to achieve the desirable end-states.
Values and Attitudes: Values and attitudes are closely associated terms. Values are cognitive
component of attitudes. They are key input in attitude formation. Central values are expressed in
the form of attitudes.
3.4. Perception and importance of perception
“Perception is the process through which the information from outside environment is selected,
received, organised and interpreted to make it meaningful to you. This input of meaningful
information results in decisions and actions.”
“Perception may 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. The
study of these perpetual processes shows that their functioning is affected by three classes of
variables—the objects or events being perceived, the environment in which perception occurs
and the individual doing the perceiving.”
“Perception refers to the interpretation of sensory data. In other words, sensation involves
detecting the presence of a stimulus whereas perception involves understanding what the
stimulus means. For example, when we see something, the visual stimulus is the light energy
reflected from the external world and the eye becomes the sensor. This visual image of the
external thing becomes perception when it is interpreted in the visual cortex of the brain. Thus,
visual perception refers to interpreting the image of the external world projected on the retina of
the eye and constructing a model of the three dimensional world.”
3.4.1. Importance of Perception:
• Understanding the tasks to be performed.
• Understanding associated importance of tasks allotted.
• Understanding preferred behavior to complete respective tasks.
• Clarifying role perceptions.
3.4.2. Process of Perception:

Output
Inputs Selection
Organisation Interpretation (Behavior or
(Confrontation) (Registration)
Feedback)
Perceptual Mechanism
Perception formation is slow and complex process that undergoes an number of psychological
processes. While explaining perception process, Joseph Reitz states: “Perception includes all
those processes by which an individual receives information about his environment – seeing,
hearing, feeling, tasting, and smelling.
1. Inputs (Confrontation): perception starts with stimuli confrontation. A man omes in contact
with several stimuli and uses them as inputs for developing perception. A stimulus is any person,
event, or thing that is closely related to one’s environment; they provide inputs for person’s
thinking and perception.
2. Selection (Registration): the process of choosing certain stimuli for further processing is
known as selection. All stimuli sensitized are not equally important, they are not related to one’s
needs. Only relevant and important stimuli are given importance and are more likely to be
selected for developing perception. Characteristics of stimuli, like size. Intensity, contrast,
repetition, motion, usefulness, novelty, familiarity etc., affect the selection process. They draw
one’s attention. The process of selecting only relevant stimuli is called perpetual selectivity.
3. Organisation: Organisation is another important facet in perceptual mechanism. While
selection is concerned with the external and internal factors that gain one’s attention, the
perceptual organisation focuses on what takes place in the perceptional process once the
information from the external situation is received. Two types of factors affect organization
figure-ground and grouping.
Figure ground suggests that perceived objects stand out as separate or distinct from their general
background or group.
Grouping is simply the meaningful arrangement of perceived inputs. It consists of modifying,
adding, associating, and eliminating of information about the stimulus.

People organize perceived inputs (objects, events, or persons) in various ways such as proximity,
closure, continuity and simplification.
4 Interpretation: interpretation is the most significant aspect of perception. After selecting and
organizing the sensory inputs, the perceiver now interprets them to draw a meaningful picture. It
involves making judgment about others. It is affected by other psychological processes, like
motivation, learning, attitudes, and personality.
Interpretation process is influenced by two types of factors.
1. Characteristics of the perceiver (needs and motives, self concept, past experience, current
emotional state).
2. Characteristics of the situation (working climate and conditions, organization culture,
organization structure, groups, and other physical, social and organizational factors.)
5. Output (Behaviour or Feedback): output is the result of perception. It is the feedback of the
perception developed; the perceiver behaves or responds according to his perception. Output
may be referred as reaction or behavior.
Registration, interpretation and feedback occur within the cognitive processes they are
unobservable of the person. Only feedback, in form of person’s reaction or behavior, is
observable.
3.5. Factors influencing perception
All people may not have same perception regarding a stimulus (i.e., events, person or thing)
because perception depends on various factors. Two types of factors-internal factors and external
factors affect perceptual mechanism.
a. External or Non-cognitive Factors: External factors are more relevant to selection or
registration or stimuli. Few external factors are:
• Intensity of stimuli
• Size of perceived stimuli
• Contrast
• Background
• Proximity
• Frequency or repetition
• Motion and sound
• Novelty and familiarity
• Status of stimuli
b. Internal or cognitive factors:

• Needs or motives
• Personality and self concept
• Past experience
• Attitudes
• Current emotional and psychological state
• Situations
• Social factors
3.6. Interpersonal perception and impression Management
Interpersonal perception means the process of making meaning from things we experience in
people and our relationships. This process involves three components: selection, organization,
and interpretation. Selection means attending to a stimulus. These are the things one notices
about someone.
Interpersonal perception includes:
• Non-verbal communication
• Reinforcement
• Questioning
• Reflecting
• Opening and closing
• Explanation
• Listening
• Self-disclosure
Components of perceiving others:
• Stereotyping
• Primacy and recency effects
• Perceptual set
• Ego centrism
• Positivity and negativity bias
• Attribution

The process of interpersonal perception is complex and often unconscious. Raising awareness of
humans' common perceptual tendencies can help us become more competent communicators by
becoming aware of our own common perceptual errors, and working to improve them.
3.7. Motivation and its importance
3.7.1. Definition:
The word motivation is derived from the Latin word “movere” which means “move on”
Motivation is something that moves a person to act on and continuous him in a course of action
already initiated.
Robert Dubin
“Motivation refers to a driving force which induces a person to act in a particular way”.
“Motivation defined as the way in which urges, drives, desires, aspirations, striving or needs
direct, control of explain the behaviour of human beings”
MC Farland
Characteristics of Motivation:
1. Motivation is a process that stimulates people to put efforts in specific direction for
accomplishment of goals.
2. Motivation is a psychological/cognitive concept. It is the inner state
3. Existence of needs and desire to satisfy those needs are preconditions or essential
conditions to motivate, or to be motivated.
4. Motivation is the act of supplying motives to prompt people to put efforts.
5. Motivation is a continuous process
6. Motivation is one of the major determinants of human behavior.
7. Motivation is based on expected satisfaction.
8. Motivation can be studied and applied on individual basis
9. Motivation can be learned
10. Individual perception affects all stages of motivation
11. Motivation may be financial or non-financial, may be continuous or intermittent, may be
individual or group, may be offered or derived, and may be formal or informal.
12. Level of efforts is the main indicator of the intensity of motivation.
3.7.2. Process of Motivation:
Motivation process involves relationship among seven variables – needs, motives, drive,
motivation level, performance, rewards, and satisfaction.

Motivation force starts with drive. At this stage, an individual has clear idea regarding what is to
be done to meet needs, or remove deprivation. Here, he is prompted to exert efforts. To what
degree the promptness/drive in motivation depends on a number of factors. The level of efforts
depends on two main determinants, ones’ ability to work and role clarity, and willingness to
work. Willingness to work depends on level of value/valence one assigns to final
outcomes/rewards or satisfaction as well as expectancy. Expectancy states the probability about
effort-reward and effort-performance relationships. All these are inputs in amount and quality of
efforts. If efforts are supported by job-related and other factors along with role perception and
ability. Role perception and abilities affect at two levels in the model, on one hand, they
determine how much efforts an individual can make, and on the other hand, they determine
impact of efforts on performance. There may be satisfactory performance. Throughout the
process, perception, probability and expectancy play a very significant role.
3.7.3. Importance of Motivation:

1. Base to understand human behavior at work
2. Achievement of organization’s objectives
3. Easy integration or coordination
4. Improved morale and higher job satisfaction
5. Motivation is an input for effective leadership and communication
6. Better utilization of productive resources
7. Lower turnover of employees and reduced absenteeism
8. Reduced resistance to change

9. Sense of belongingness and devotion to the organization.

10. Improved loyalty, regularity and self discipline
11. Higher efficiency and improved performance
12. Better and improved industrial relations.
13. Easy availability of required employees
14. Good image and reputation
3.8. Types of Motivation
a) Monetary/ Financial incentives
b) Non-Financial incentives
Classification of Monetary/Financial Rewards

Direct Rewards Indirect Rewards
1. Pay (salary/wage) 1. Housing allowance
2. Overtime pay 2. Conveyance
3. Profit sharing 3. Holiday pay
4. Fringe benefits 4. Medical allowance
5. Bonus 5. Consumable items
6. Cash prizes 6. Recreational facilities
7. Free education
8. Domestic servant
9. free lunch
Classification of Non-financial Rewards

Individual Rewards Collective Rewards Institutional Rewards
1. Status 1. Social importance of work 1. Good human relations
2. Promotion 2. Team split 2. informal relations
3. Responsibility 3. Informal relations 3. participation
4. Authority 4. Special dealings 4. Morale building
5. Recognition 5. Healthy competition 5. discipline and regularity
6. Job security 6. Group awards 6. conducive policy

7. Respect 7. Group recognition 7. Appropriate location

8. Designation 8. Free communication
9. Job satisfaction 9. healthy climate
10. Special schemes
11. Company’s reputation
12. Job enrichment and enlargement
13. Quality of work life
14. Fail, equal and just treatment to all
3.9. Effects of Motivation on work behavior

Motivated employees are inclined to be more productive than non-motivated employees.
Most businesses make some pains to motivate workers but this is normally easier said than done.
Employees are all individuals with different like’s dislikes and needs, and different things will
motivate each.
1. Motivated Employees Are More Productive : If employee will satisfied and happy then he/she
will do his /her work in a very impressive way, and then the result will be good, on the other
hand motivated employee will motivate other employees in office.
2. Decision-making and practical Expectations: It is important to engage employees in the
decision-making process, but create realistic expectations in the process.
3. Job Description, Work Environment and Flexibility : Employee doing the right job for his
personality and skill set, and performing well at the job greatly increases employee motivation
and satisfaction. A safe and non-threatening work environment is necessary to maintain a high
level of employee motivation. Flexible human resource policies, flexible time, work from home,
childcare also be liable to have happier and more motivated workers.
4. Pay and Benefits: Keeping employees motivated with good benefits is easy. Where to draw
the line at generous benefits that motivate all employees, versus raises and larger salaries to
retain and attract the best workers and keep them happy and motivated to be working for you, are
more difficult.
5. Company Culture: Creating a positive and employee-friendly company culture is a great
motivational tool.

Unit-IV: Organization structure – Formation – Groups in organizations – Influence –

Group dynamics – Emergence of informal leaders and working norms – Group decision
making techniques – Team building - Interpersonal relations – Communication – Control.
4.1. Organization structure – Definition and Formation of Organization structure

4.1.1. Definition of Organisation:
“Organisation is essentially a matter of relationships of man-to-man, job-to-job, and department-
to-department.”
-John Pfifner and Frank P, Sherwood
“Organisation is a structural relationship by which an enterprise is bound together, and the
framework in which individual effort is coordinated.”
-Koontz and O’Donnell
4.1.2. Significance of Organisation:
➢ Organization is a tool for management action
➢ Organisation is useful in achievement of objectives efficiently
➢ Organization ensures the Provision for all activities
➢ Organization helps in reaping the benefits of specialization.
➢ It is possibility of Effective assignment of work and delegation of authority.
➢ A good organization brings clarity in activities and reduces conflicts.
➢ It is useful to promote healthy relations
➢ Organization structure stimulates creativity
➢ It ensures optimum use of resources.
➢ A good organization promotes better coordination
➢ Effective organization can contribute in establishing and maintaining reputation and
goodwill in the market.
➢ It facilitates for expansion, development and diversification.
➢ Organization is the basis for employee’ satisfaction and high morale
➢ Organization is base for other managerial functions.
4.1.3. Feature of good organization:
➢ Simplicity
➢ Flexibility
➢ Stability and continuity

➢ Provision for top management

➢ Importance of human element
➢ Specialization (division of work)
➢ Clear and unbroken line of authority (scalar principle)
➢ Unity of direction and command
➢ Balance – authority and responsibility
➢ Application of absoluteness of ultimate responsibility
➢ Proper emphasis on staff function
➢ Minimum possible levels
➢ Proper span of control
4.1.4. Types of Organization Structure:

Line Organization: Line organization is the simplest form of organization and is most common
among small companies. The authority is embedded in the hierarchical structure and it flows in a
direct line from the top of the managerial hierarchy down to different levels of managers and
subordinates and further down to the operative levels of workers. It clearly identifies authority,
responsibility and accountability at each level. These relationships in the hierarchy connect the
position and tasks of each level with those above and below it. There is clear unity of command
so that the person at each level is reasonably independent of any other person at the same level
and is responsible only to the person above him. The line personnel are directly involved in
achieving the objectives of the company.
Staff Organization: In this type of organization, the functional specialists are added to the line,
thus giving the line the advantages of specialists. This type of organization is most common in
our business economy and especially among large enterprises. Staff is basically advisory in
nature and usually does not possess and command authority over line mangers. The staff consists
of two types:
General Staff: This group has a general background that is usually similar to executives and
serves as assistants to top management. They are not specialists and generally have no authority
or responsibility of their own. They may be known as special assistants, assistant managers or in
a college setting as deputy chairpersons.
Specialized Staff: Unlike the general staff who generally assist only one line executive, the
specialized staff provides expert staff advice and service to all employees on a company wide

basis. This group has a specialized background in some functional area and it could serve in any
of the following capacities:
(a) Advisory Capacity: The primary purpose of this group is to render specialized advice and
assistance to management when needed. Some typical areas covered by advisory staff are
legal, public relations and economic development.
(b) Service Capacity: This group provides a service that is useful to the organization as a whole
and not just to any specific division or function. An example would be the personnel department
serving the enterprise by procuring the needed personnel for all departments. Other areas of
service include research and development, purchasing, statistical analysis, insurance problems
and so on.
(c) Control Capacity: This group includes quality control staff who may have the authority to
control the quality and enforce standards.
Functional Organization: The functional organization features separate hierarchies for each
function creating a larger scale version of functional departments. Functional
departmentalization is the basis for grouping together jobs that relate to a single organizational
function or specialized skill such as marketing, finance, production, and so on. The chain of
command in each function leads to a functional head who in turn reports to the top manager.
The functional design enhances operational efficiency as well as improvement in the quality of
the product because of specialists being involved in each functional area and also because
resources are allocated by function rather than being duplicated or diffused throughout the
organization.
One of the main disadvantages of the functional design is that it encourages narrow
specialization rather than general management skills so that the functional managers are not well
prepared for top executive positions. Also, functional units may be so concerned with their own
areas that they may be less responsive to overall organizational needs.
Committee organization: some business units follow committee type of organization. A
committee consists of a group of people. Every decision is taken by the committee and not by an
individual. Committee members have equal authority to take decisions. The distinguishing
feature of committee organization is that there is a committee for particular function or
department.
Merits of Committee organization:

a. Balanced decisions b. better coordination c. involvement of diverse interest groups d. no fear

centralization of authority e. improved motivation f. improved motivation g. management
development technique h. reduced conflict i. flexible form j. tool for managerial strategy k.
suitable for critical decisions
Divisional Organization: The divisional or departmental organization involves grouping of
people or activities with similar characteristics into a single department or unit. Also known as
self-contained structures, these departments operate as if these were small organizations under a
large organizational umbrella, meeting divisional goals as prescribed by organizational policies
and plans. The decisions are generally decentralized so that the departments guide their own
activities. This facilitates communication, coordination and control, thus contributing to the
organizational success. Also, because the units are independent and semi-autonomous, it
provides satisfaction to the managers that in turn improve efficiency and effectiveness.
This division and concentration of related activities into integrated units is categorized on the
following basis:
Departmentalization by Product: In this case, the units are formed according to the type of
product and it is more useful in multi-line corporations where product expansion and
diversification, and manufacturing and marketing characteristics of the product are of primary
concern. The general policies are decided upon by the top management within the philosophical
guidelines of the organization.
Departmentalization by Customers: This type of departmentalization is used by those
organizations that deal differently with different types of customers. Thus, the customers are the
key to the way the activities are grouped. Many banks have priority services for customers who
deposit a given amount of money with the bank for a given period of time. Similarly, business
customers get better attention in the banks than other individuals.
Departmentalization by Area: If an organization serves different geographical areas, the division
may be based upon geographical basis. Such divisions are specially useful for large scale
enterprises that are geographically spread out such as banking, insurance, chain department
stores or a product that is nationally distributed.
Departmentalization by Time: Hospitals and other public utility companies such as Telephone
Company that work around the clock are generally departmentalized on the basis of time shifts.
For example, the telephone company may have a day shift, on evening shift and a night shift, and

for each shift a different department may exist, even though they are all alike in terms of
objectives.
Project Organization: These are temporary organizational structures formed for specific projects
for a specific period of time and once the goal is achieved, these are dismantled. For example,
the goal of an organization may be to develop a new automobile. For this project, the specialists
from different functional departments will be drawn to work together.
These structures are very useful when:
1. The project is clearly defined in terms of objectives to be achieved and the target date for the
completion of the project is set. An example would be the project of building a new airport.
2. The project is separate and unique and not a part of the daily work routine of the organization.
3. There must be different types of activities that require skills and specialization and these must
be coordinated to achieve the desired goal.
4. The project must be temporary in nature and not extend into other related projects.
Matrix Organization: A matrix structure is, in a sense, a combination and interaction of project
and functional structures and is suggested to overcome the problems associated with project and
functional structures individually. The key features of a matrix structure are that the functional
and project lines of authority are super-imposed with each other and are shared by both
functional and project managers. The functional structure is primarily responsible for:
1. Providing technical guidance for the project.
2. Providing functional staff that is highly skilled and specialized.
3. Completing the project within prescribed technical specifications.
4.2. Groups and group dynamics
4.2.1. Definition and characteristics of a group:
“A group is any number of people who share goals, often communicate with each other over a
period of time, and are few enough so that each individual may communicate with all the others,
person-to-person.”
A group may be defined a number of individuals who join together to achieve a goal. People join
groups to achieve goals together that cannot be achieved by them.
Characteristics of a group: 1. Membership 2. Leadership 3. Formal hierarchy or status 4.
Composition 5. Specific task 6. Interaction 7. Group norms 8. Communication 9. Group
cohesiveness. 10. Member satisfaction 11. Size 12. Types
4.2.2. Definition and factors of Group dynamics:

“Group dynamics is concerned with the interactions and forces among group members in a social
situation. When the concept is applied to the study of organizational behavior, the focus is on the
dynamics of members of formal and informal groups and teams in the organization.”
-Fred E Luthans
“Group dynamics is viewed from the perspective of internal nature of groups, how they form,
their structure and processes, and how they function and affect individual members, other
groups, their formation, and structures. It explains how and why groups are formed, and the way
they affect individuals, and other groups and the organization.”
-Kurt Lewin
Factors in group dynamics:
1. Organisation related factors:
a. Organizational design or structure b. Organization strategy c. Type of Leadership d. Decision-
making process e. Communication f. Authority structures g. Formal regulations h.
Organizational resources i. Performance evaluation and reward system j. Human resource
selection process k. Organisational culture etc.
2. Member related factors:
a. Member characteristics and behavior b. Goals and expectation of Members c. Past experience
of members.
3. Group related factors:
a. Groups Norms b. Group Goals c. Group cohesiveness
4. Job/Work related factors:
a. Type of job b. Physical work settings c. Type of supervision d. Risk and facilities e. Need of
group efforts to perform the work.
4.2.3. Reasons for formation of groups:
• Companionship
• Sense of identity
• Source of information
• Job satisfaction
• Protection of members
• Esteem
• Security
• Outlet for frustration
• Perpetuation of cultural values

• Generation of ideas
• Self evaluation
4.2.4. Stages of group formation:
I. Forming (orientation): exchange of background personal information, uncertainty, and
tentative communication.
II. Storming (conflict): Dissatisfaction, disagreement, challenger, to lead & procedures,
cliques form.
III. Norming (Structure): cohesiveness, agreement on procedures, standards, rules, improves
communication.
IV. Performing (Performance): focus on the work of the group, task completion, decision
making, and cooperation.
V. Adjourning (Dissolution): departure, withdrawals, decreased dependence, regret.
4.2.5. Types of groups:
Types of Groups
Formal Informal
Groups Groups
Interest
Task Groups
Groups
Command Preference
Groups Groups
Functional Friendship
Groups Groups
4.3. Emergence of informal leaders and working norms

An informal leader is someone within an organization or work unit who, by virtue of how he or
she is perceived by his peers (or others in the organization) is seen as worthy of paying attention
to, or following. The major thing that distinguishes an informal leader from a formal one is that
the informal leader does not hold a position of power or formal authority over those that choose
to follow him or her.

The ability for an informal leader to influence or lead others rests on the ability of that person to
evoke respect, confidence, and trust in others, and it is not uncommon for an informal leader to
not intentionally try to lead.
Informal leaders can be exceedingly valuable to organizations, and to the success of formal
leaders, or, if informal leaders do not support the formal leaders and their agendas and vision,
they can function as barriers in the organization.
• Not all informal leaders have intentionally gone out of their ways to become informal
leaders. Sometimes they "emerge" simply because others in the organization have great
respect for them.
• While informal leaders can be important or even essential to the success of an
organization, they can also be huge impediments if they start pulling in directions that are
in opposition to the direction the formal leaders value.
• For the reason above, formal leaders may want to take steps to develop their informal
leaders more completely, and keep lines of communication open with them.
• While it may seem that promoting informal leaders to formal positions of power makes
sense, it's also the case that some informal leaders may become ineffective if given
formal authority (while some may be very successful). This is because formal authority
may alter the relationships of the new formal leader with his or her formal peers.
• Care needs to be taken when trying to harness the power of informal leadership. An
informal leader's power and influence often derives from the perception that he or she has
integrity, and stands up for what he or she believes, because their behavior has
demonstrated that. When formal leaders try to co-opt, or manipulate informal leaders, the
risk is that the informal leaders will rebel, or "stand against" the formal leader.
Attempting to bribe, coerce or otherwise pressure an informal leader to toe the line may
end up backfiring.
The issue of leadership development for informal leaders:
• If the desire is to promote an informal leader into a formal position, recognize that not all
informal leaders want formal power and authority, and that developing leadership skills
in a systematic way may actually undermine that person's ability to lead informally.
• Grooming for promotion to a formal leadership role is probably best done informally, and
through a mentoring and communication process with the informal leader, and with the
consent of that person.

• One of the elements that give informal leaders the ability to lead (and inspire) is their
perceived independence from the formal authority structure. To make this clear consider
a person who is respected for his or her integrity and performance, and compare this to
how a person might be perceived if he or she is perceived as a tool of management.
Perception is very important. If a firm wants to develop informal leaders, the process
needs to be subtle and gradual and non-intrusive or the risk is that the informal leader will
lose his or her informal influence.
• It may be best to offer the opportunity for an informal leader to learn more about how to
become a more effective leader than to push that opportunity onto the informal leader.
Let the person decide. Many informal leaders don't really want to be in the spotlight, or
don't see themselves as leaders, and will see management attempts to "help" as negative
or intrusive.
• Providing a graduated and progressive degree of authority may seem to be a good way to
develop informal leaders. (For example, sports teams will sometimes appoint an informal
leader to the position of "captain" of the team. This can work. However if management
appoints the person as captain it tends to alter the relationship of that person with his or
her peers. That's why a number of sports teams prefer to have the choice of who will be
"captain" be decided by the team members, rather than make a management appointment.
The captain then is more likely to be perceived as "one of us" rather than "one of the
management team".)
• One of the biggest influences on the development of informal leadership is the existence
of proper role models.
4.4. Group decision making techniques
Employees often work in groups and make decisions that affect the whole company. Moreover,
sometimes the complexity of a problem calls for pooling expertise and opinions to make a sound
decision. Also, participation improves employee commitment to decisions. Decision-making in
groups is not easy.
(Ex. the group may polarize and refuse to reach consensus or it may form a group think and stick
to a familiar mutually acceptable decision without considering better alternatives. Knowledge of
group decision-making techniques can help managers effectively steer group decision-making
processes.)
Techniques in Group Decision making:

Brainstorming
Brainstorming is a popular group decision-making technique that is used for generating ideas. In
brainstorming, the leader of the session presents a problem or question, clarifies the rules of the
session and then the group offers ideas in a round-robin format. Ideas are written down so that
every member can see them. Brainstorming does not solve the problem but helps generate
creative ideas. As a result, quantity of ideas counts and members do not criticize ideas. To be
successful, the leader of a brainstorming session must understand the problem and be able to
create a relaxed and creative air.
Nominal Group Technique
This group decision-making technique is used to identify problems or to evaluate alternatives. In
this technique, members of the group spend five to 10 minutes writing their ideas without
discussion. Then, they report their ideas individually. Ideas are written on a flip chart, and
individuals try to add to the ideas. In the next phase, group members vote or rank the ideas
privately. With private voting, strong members of the group can not affect the results. After
voting, the group discusses results and generates more ideas. The idea generation, voting and
discussion cycle can continue until a satisfactory decision is reached.
Delphi Method
The Delphi method helps the group reach consensus without the influence of strong members of
the group and the tendency to rush for a decision at the end of a meeting. It is a structured variant
of the traditional expert polls and is usually used in forecasting. In this method, a questionnaire is
mailed to a group of experts; administrators aggregate the results and send a second
questionnaire with the results of the first round. Several rounds of questionnaires and feedbacks
help respondents reach consensus on the debated issue. The administrators of the Delphi method
make a decision based on the results of the rounds.
Dialectical Inquiry
The dialectical inquiry ensures that decision-makers consider all alternatives and opposing views
in decision-making. Groups of people debate their opposing views in the presence of the
decision-maker. The devil’s advocate method is a related approach in which a member of the
group deliberately criticizes the favored decision. This helps managers make an informed
decision.
4.5. Team – Definition, characteristics and forms of teams

Team is a group of individuals with the ability to do special tasks, who prefer to work
collectively for specific purpose, have shared leadership, and bear individual and collective
accountability.
4.5.1. Characteristics of team:
a) Collective work-products
b) Strategic effects
c) Improved version of formal group
d) Small size or limited members
e) Rewarding pattern
f) Complementary membership role
g) Emphasis
h) Shared leadership
i) Accountability
j) Specific purpose
k) Interacting style (open ended)
l) Members’ characteristics or expertise
4.5.2. Differences between teams and groups
4.5.3. Forms of Teams: Some popular forms of team include

1. Cross-functional Teams: Normally, all teams are cross-functional teams. This team consists of
some specialists and supporting staff. It is constituted by drawing expert personnel from different
functional areas or departments. The main purpose is to take decisions, solve problems, and carry
out assignments in those areas which cannot be done by one specific department.
David Chaudron suggested five steps to improve performance of cross functional teams.
i. Choosing members carefully
ii. Clearly establishing purpose of team
iii. Ensuring that everyone understands how the group would function
iv. Conducting intensive team building up front so that everyone learns how to interact
effectively.
v. Achieving noticeable results so that morale remains high and members can see the impact
of their efforts.
2. Virtual Teams:
“Virtual teams are groups of people who work interdependently with shared purpose across
space, time, and organization boundaries, using technology to communicate and collaborate.”
- J. Lipnack and J Stamps
Virtual teams cannot be applied to all types of interactions. They are more suitable for
knowledge based tasks to remote areas. Virtual teams are being increasingly used for global
partnering and outsourcing. Their success depends on type of operations, type of people and
training, use of suitable modes of information technology, and their conditions. In order to make
virtual teams operationally effective and to meet the future challenges, more research and skillful
application are necessary.
3. Self-managed teams: self managed teams are managed automatically, without external control.
“Self managed teams are groups of members who are responsible for managing and performing
technical tasks that result into a product or service being delivered to internal or external
customers”.
Features:
a. Self managed teams set their goals, complete their work, and review the same.
b. They are responsible to plan and control their own work processes
c. They are empowered to perform managerial and leadership functions.
d. Self-managed teams are empowered to hire staff and organize activities independently.
e. To complete their work, they can purchase necessary inputs and facilities without formal
approval of higher authority.
f. They have their own budget and coordination scheme to work with others.
g. They buy and hold necessary inventories or inputs to complete their work
h. They are responsible to select and train the staff needed.

i. They take sole responsibility of resulting outcomes.

4. Problem-solving teams: Problem-solving teams are also known as corrective teams. Such
teams are constituted to solve specific problems the organization faces. The members of these
teams are selected from those areas where the problems requiring solutions exist. They may be
selected from one or more department. Problem-solving teams consist of experts who have rich
experience and are capable of tackling problems. Team members apply appropriately
methodologies and techniques to go deep into the problems, search appropriate alternative
solutions, evaluate the alternatives, and finally select specific solution to problems.
4.6. Team building
Team building involves deliberate efforts. It involves activities designed to construct, develop,
and sustain groups of people who are working together to achieve common goals, with a
commitment to take collective responsibility. Efforts are made to make members learn teamwork
and understand their role more clearly, make effective decisions and pursue specific group goals.
Team building demands the right members and the right type of efforts.
4.6.1. Advantages of team building:
i. Emphasis on team mission
ii. Effective problem solving
iii. Development of interpersonal skills
iv. Open and participative climate
v. Successful goal achievements
vi. Feeling of empowerment
vii. Improved communication
viii. Positive roles and norms
ix. Level of job satisfaction and happiness
x. Team resiliency level
xi. Team efficacy
4.6.2. Team Building Programme:
Fred. E Luthans described steps for team building programme as:
i. Team skills workshop
ii. Data collection (Org. climate, culture, supervisory, behavior, job contents and other
aspects).
iii. Data confrontation

iv. Action planning

v. Team building
vi. Intergroup building
4.7. Interpersonal relations in teams
4.7.1. Interpersonal skills and teamwork:
When teamwork goes well, it distributes the work among professionals in ways that make it
easier to reach goals and excel in the organization. Good communication skills are integral to any
team’s success and the overall success of the firm.
4.7.2. Enhancing Team Effectiveness:

• Effective communication among team members
• By Delegating responsibility
• By offering better leadership to team members
• By creating a culture of learning
• By recognition and incentives to team members
• By setting realistic goals
4.7.3. Transactional Analysis:
Perception, learning, motivation, attitudes, etc., are used for analyzing individual behavior. TA is
used to analyse and improve interpersonal behavior while Group Dynamics are used for
analyzing group behavior.
TA was originally developed by Eric Berne for psychotherapy to treat patients in 1950s. it was a
clinical instrument. Later on, Eric Berne, Thomas Harris, and Jongeward extended its application
to ordinary interactions.

TA is a method of analyzing and understanding interpersonal behavior. When people interact,

there a is social transaction in which one person responds to another. The study and analysis of
these transactions between people are called transactional analysis. TA is one of the strategies or
tools for Organisational Development. It helps people better understand themselves and their
effect on others. It is widely used to analyse group dynamics and interpersonal communication it
is useful to understand their own ego states, and those of others, to understand the principle
behind transactions and games.
Components of Transactional Analysis:
1. Analysis of self awareness: it implies knowing about ourselves. To what extent, a person is
aware of himself affects his interpersonal transactions. Johari window is a useful framework
to analyse self-awareness.
A Johari window is a psychological tool created by Joseph Luft and Harry Ingham in 1955.
There are four perspectives of oneself, they are known as windows. The model is called johari
house with four rooms. There are four possible states of awareness.
a. The Open Self: the person knows himself and allows others to know – he is fully aware
of himself and others are also aware of him.
b. The Blind Self: He doesn’t know about himself, but allows others to know him – he is not
aware of himself, but others are aware of him. Feedback of others play crucial role in
decreasing blind self.
c. The Hidden Self: The person knows himself, but doesn’t allow others to know him – he
is fully aware of himself, but others are not aware of him. It is private space/chamber that
others cannot see. He is not open for others to know. One way of decreasing hidden self
and increasing open self consists of processes of self disclosure. It contains trusting

others. When one feels comfortable, he is more likely to disclose more intimate details
about himself.
d. The Dark Self: the window represents unknown or undiscovered self. It is the case of
both the blind self and the hidden self. The person does not know himself and does not
allow others to know him-he is not aware of himself and others are also not aware of him.
In order to increase the open self and decrease the dark self, attempt should be made to
reduce blind self as well as hidden self.
2. Ego States (Structural Analysis): Ego states are made of, or are affected by, a number of
factors, such as personal capabilities, qualifications, castes and communities, authority and
positions, nationality, training, achievements, self-concept, and other personality characteristics.
All those factors that affect one’s beliefs about oneself are considered as contributors in ego
states.
“Ego is person’s conscious belief, psychological state, or pattern of thinking that governs his
transactions with others. It is belief about oneself in relation to the other.”
Three main ego states are:
a. Child (C) Ego State: this is the state in which the person behaves like an impulsive child.
This state can be characterized as submissive, conforming, insubordinate, emotional,
joyful, truthful, innocent, rebellious, etc.
b. Adult (A) Ego State: in adult ego state, the person acts like a mature adult. His behavior
tends to be more balanced and rational. While dealing with others, this state is
characterised by fairness and objectivity.
c. Parent (P) Ego State: In parent ego state, the person behaves like a dominating parent. He
treats others like children. He sets standards and rules that others must follow. Rewards
and punishments are the tools frequently used to make other behave as per parent
specified ego state.
3. Analysis of Transactions: From the Organisational behavior point of view, more important
aspect is how one ego state matches or conflicts with another state in interpersonal
interaction. Transactions can be classified into three groups.
a) Complementary transactions: there are three possible complementary transactions.
i. Complementary transaction occurs when behavior exhibited by superior from a
particular ego state receives appropriate and expected response from
subordinate’s ego state.

ii. In the second case, complementary transaction occurs when both superior and
subordinates interact/operate from the same ego states.
iii. In the third case, complementary transaction occur when superior expects that his
subordinate is more experienced and matures, and must take care of his activities.
In complementary transactions, the expectation of a person is key criterion. Transaction
may be analysed from subordinate’s side too. Complementary transactions are most
effective for interpersonal relations, cooperation, and communication.
b) Cross Transactions: A cross transaction occurs when the behavior exhibited bya
person is not responded by other in the expected or compatible ego state. Cross
transaction is the source of interpersonal conflict in an organisation. It leads to hurt
feeling, insult, ignorance, and frustration.
c) Ulterior (unknown, hidden or mysterious) transactions: ulterior transactions are most
complex. They are most unobvious form of transaction. Alike cross transactions, they
damage interpersonal relations. Ulterior transactions occur when one person, at a
time, operates from at least two ego states with two different situations.
4. Life Script Analysis: Life script is like a script of a role one has to play in drama. It is total
description about a person. Person’s philosophy of life, goal, ambition, attitudes, etc., affect life
script. It describes his total pattern of living in the world. It shows O.K. position.
5. Stroking: the concept of stroking is one of the important aspects of TA. People need cuddling,
affection, recognition, and praise as strokes. Strokes fuel them and keep them active and
satisfied. Lack of stroking adversely affects both physical and psychological development. It
applies for all types of recognition.
There are two types of strokes-positive (recognition, affection, pat on the back etc.) and negative
(criticism, hating and scolding).
6. Games analysis: game may be defined as an intelligent, calculated, or logical tactics with
hidden meaning that can yield result in one’s favour. It always involves strategy and assumption,
but does not always end with expected gain. The extent to which game results into desirable
outcomes depends on a number of factors related to the player, opposite player, organizational
setting, situations, and the luck as well.
Games are played to get desired response, or to meet some expectations. Games always have
win-lose outcomes, i.e., games end with benefits to one and loss to another. Both superior and

subordinates play games for their benefits or significance. Most games are dysfunctional for
productive interpersonal relations.
Games are played to get favour of authority, promotion and priority, discriminative incentives, or
to settle enmity. Sometimes games are played due to envious or unhealthy mentality. Analysis of
games elicits a lot of valuable information which can be used for improving relations,
formulating policies, and creating healthy climate and culture.
4.8. Concept of communication
4.8.1. Communication: communication is a process of exchanging information, ideas, thoughts,
feelings and emotions through speech, signals, writing or behaviour.
4.8.2. Elements of communication:
1. Channels of communication:
• Formal communication and
• Informal communication
Formal communication: Vertical Communication (upward and downward) and horizontal
communication.
Informal communication: Grape wine communication and Lateral communication
2. Modes of Communication: Verbal communication and Non verbal communication
Verbal communication: it refers to the form of communication in which message transmitted
verbally. Communication is done by word of mouth and a piece of writing. Types of verbal
communication are oral and written communication.
a) Oral communication: In oral communication spoken words are used. It includes face to
face communication, speech, telephonic conversation, video, radio, television, voice over
internet etc. oral communication is influenced by pitch, volume, speed and clarity of
speaking.
b) Written communication: in written communication, written signs or symbols are used to
communicate. It may be printed or written. It is influenced by the vocabulary and
grammar used, writing style, precision and clarity of the language used.
Non verbal communication: Nonverbal communication is the process of sending and
receiving messages without using words, either spoken or written, also called manual language.
Elements in Non verbal communication:
• KINESICS (body language) {facial expressions, head, eye gaze, gestures, postures,
shape of body, personal appearance adornment.)

• HAPTICS (Touch language)

• PROXIMICS (Space language)
• ARTIFACTS (Environmental, colour, lighting and climate)
• CHRONEMICS (Time language)
• SILENCE
• SIGN (Symbols)
• PARALANGUAGE.
3. Direction of Communication:
a) Downward communication
b) Upward communication
c) Horizontal communication
4. Formal Provisions – Rules, Policies and procedures
5. Resources and Facilities
4.8.3. Process of Communication:
4.8.4. Importance of Communication:

• Useful to express thoughts, ideas and feelings.
• It creates awareness
• To fulfil a goal
• To avoid isolated
• It highlights issues
• Communication is progress development
• It is useful in educating the masses etc.
4.8.6. Types of Communication:

• Intra personal communication

• Inter personal communication
• Extra personal communication
• Group communication
• Mass communication
4.8.7. Barriers of communication
There are many reasons why interpersonal communications may fail. In many communications,
the message (what is said) may not be received exactly the way the sender intended. It is,
therefore, important that the communicator seeks feedback to check that their message is clearly
understood. There are many barriers to communication and these may occur at any stage in the
communication process.
Types of Barriers:
• Organizational Barriers. (Policy, rules and regulations, facilities, complex
organization, status and position.)
• Psychological Barriers. (Poor pronunciation, confused thinking, communication
overload, attitude, fear and anxiety, suspicious, jealousy, anger, resentment, prejudice,
lack of interest and lack of listening.)
• Physical Barriers. (Physical health, poor hearing and distance)
• Mechanical barriers. (non availability of proper machines, present of defective
machines, interruption and power influence)
• Perceptional Barriers. (lack of common experience, linguistic, low IQ from receiver’s
side and sender’s side)
4.8.8. Rules for effective communication:

• Gathering thoughts
• Choosing right words
• Voice modulation
• Proper body language
• Effective listening
• Proper concentration
• Eye contact
• Sage of simple and familiar language
• Questioning skills
4.9. Control
Organizational control includes developing rules, guidelines, procedures, limits or other
protocols for directing the work and processes of employees and departments. These controls can
include setting rules or procedures for financial transactions, employee behavior and specific
practices for all or individual departments. A control can depend on an individual employee
following the guideline, or require multiple parties to agree on an action.
Financial Stability
A common internal business control target is regulating financial procedures. This helps improve
communications, allows managers to determine whether their efforts are meeting annual goals,
and prevents fraud and errors. These controls include requiring each department head to submit
and monitor an annual budget, setting limits on who can write checks, requiring large purchases
to be pre-approved by management, holding regular audits and conducting regular budget
variance analyses to spot potential problems before they get out of hand. Financial controls can
also include the production of regular reports such as cash-flow and profit-and-loss statements,
and labor, overhead and production expense reports.
Brand Management
To maximize sales to a target customer base, a business must send a consistent message about its
products or services. This includes not only communicating the brand through marketing
messages, but also by the price, where product is sold, its features and packaging. Organizational
controls often require all decisions regarding product, price, promotion and distribution to go to
the marketing department first for approval. This helps prevent inconsistent brand messages,
such as a promotions manager offering a two-for-one coupon at a high-end salon or restaurant.
Increased Productivity and Efficiency

One of the aims of organizational control is to help departments work better together. This can
be done by instituting specific communications procedures, weekly interdepartmental meetings
and regular management memos. To improve the performance of individual employees, controls
might include sharing a detailed organization chart so everyone knows who reports to whom.
Controls can include requiring managers to create written job descriptions for every subordinate.
Companies might hold mandatory orientation sessions for new employees, require certification
for some employees and create an employee handbook that sets workplace policies such as
attendance rules, grievance policies and safety regulations.
Legal Compliance
The threat of lawsuits or workplace rule violations is a serious concern for employers, and
organizational policies and procedures that address employee behavior can decrease missteps.
Workplaces free from harassment, discrimination, bullying and gossip foster better morale and
team spirit, and reduce problems that can lead to decreased productivity, efficiency and overall
performance. The same holds true when companies institute safety and security controls, and
provide employee training.
Unit-V: Leadership and Power :Meaning – Importance – Leadership styles – Theories –

Leaders Vs Managers – Sources of power – Power centers – Power and Politics.
5.1. Leadership Meaning and importance

Definition: “Leadership is the art of motivating a group of people to act towards achieving a
common goal.
Leadership is a process by which an executive can direct, guide and influence the behavior and
work of others towards accomplishment of specific goals in a given situation. Leadership is the
ability of a manager to induce the subordinates to work with confidence and zeal.
5.2. Types of Leadership styles
Styles of Leadership:

Different types of leadership styles exist in work environments. Advantages and disadvantages
exist within each leadership style. The culture and goals of an organization determine which
leadership style fits the firm best. Some companies offer several leadership styles within the
organization, dependent upon the necessary tasks to complete and departmental needs.
Autocratic:
The autocratic leadership style allows managers to make decisions alone without the input of
others. Managers possess total authority and impose their will on employees. No one challenges
the decisions of autocratic leaders. Countries such as Cuba and North Korea operate under the
autocratic leadership style. This leadership style benefits employees who require close
supervision. Creative employees who thrive in group functions detest this leadership style.
Participative (Democratic):
Often called the democratic leadership style, participative leadership values the input of team
members and peers, but the responsibility of making the final decision rests with the participative
leader. Participative leadership boosts employee morale because employees make contributions
to the decision-making process. It causes them to feel as if their opinions matter. When a
company needs to make changes within the organization, the participative leadership style helps
employees accept changes easily because they play a role in the process. This style meets
challenges when companies need to make a decision in a short period.
Laissez-Faire (Free-rein):
A laissez-faire leader lacks direct supervision of employees and fails to provide regular feedback
to those under his supervision. Highly experienced and trained employees requiring little
supervision fall under the laissez-faire leadership style. However, not all employees possess
those characteristics. This leadership style hinders the production of employees needing
supervision. The laissez-faire style produces no leadership or supervision efforts from managers,
which can lead to poor production, lack of control and increasing costs.
Transactional:
Managers using the transactional leadership style receive certain tasks to perform and provide
rewards or punishments to team members based on performance results. Managers and team
members set predetermined goals together, and employees agree to follow the direction and
leadership of the manager to accomplish those goals. The manager possesses power to review
results and train or correct employees when team members fail to meet goals. Employees receive
rewards, such as bonuses, when they accomplish goals.

Transformational:
The transformational leadership style depends on high levels of communication from
management to meet goals. Leaders motivate employees and enhance productivity and efficiency
through communication and high visibility. This style of leadership requires the involvement of
management to meet goals. Leaders focus on the big picture within an organization and delegate
smaller tasks to the team to accomplish goals
5.3. Theories of Leadership
Theories of Leadership:
1. Great man theory
2. Traits theory
3. Mc. Gregor’s X and Y theory
4. Contingency approach of leadership
5. Behavioral theory of leadership
6. Situational theory of leadership
7. Transactional leadership
8. Transformational leadership
Traits theory:
The trait model of leadership is based on the characteristics of many leaders - both successful
and unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits are
then compared to those of potential leaders to assess their likelihood of success or failure.
Ralph. M. Stagdill found that various researchers have identified specific traits related to
leadership ability. Out of those important traits are:
• Physical Traits (5 traits) (ex: energy appearance & Height)
• Intelligent and ability traits (4 traits)
• Personality traits ((16 traits) (ex: adaptability, aggressiveness, enthusiasm and self
confidence etc)
• Task related characteristics (6 traits) (ex: Achievement, drive persistence and initiative
etc.)
• Social characteristics (9 traits) (ex: cooperativeness, interpersonal skills &
administrative ability etc.)
Strengths/Advantages of Trait Theory
• It is naturally pleasing theory.

• It is valid as lot of research has validated the foundation and basis of the theory.
• It serves as a yardstick against which the leadership traits of an individual can be
assessed.
• It gives a detailed knowledge and understanding of the leader element in the leadership
process.
Limitations of the Trait Theory
• There is bound to be some subjective judgment in determining who is regarded as a
‘good’ or ‘successful’ leader
• The list of possible traits tends to be very long. More than 100 different traits of
successful leaders in various leadership positions have been identified. These descriptions
are simply generalities.
• There is also a disagreement over which traits are the most important for an effective
leader
• The model attempts to relate physical traits such as, height and weight, to effective
leadership. Most of these factors relate to situational factors.
• The theory is very complex
Mc. Gregor’s X and Y theory:
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of
human behaviour at work, or in other words, two different views of individuals (employees): one
of which is negative, called as Theory X and the other is positive, so called as Theory Y.
According to McGregor, the perception of managers on the nature of individuals is based on
various assumptions.
Assumptions of Theory X
• An average employee intrinsically does not like work and tries to escape it whenever
possible.
• Since the employee does not want to work, he must be persuaded, compelled, or warned
with punishment so as to achieve organizational goals. A close supervision is required on
part of managers. The managers adopt a more dictatorial style.
• Many employees rank job security on top, and they have little or no aspiration/ ambition.
• Employees generally dislike responsibilities.
• Employees resist change.
• An average employee needs formal direction.

Assumptions of Theory Y
• Employees can perceive their job as relaxing and normal. They exercise their physical
and mental efforts in an inherent manner in their jobs.
• Employees may not require only threat, external control and coercion to work, but they
can use self-direction and self-control if they are dedicated and sincere to achieve the
organizational objectives.
• If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.
• An average employee can learn to admit and recognize the responsibility. In fact, he can
even learn to obtain responsibility.
• The employees have skills and capabilities. Their logical capabilities should be fully
utilized. In other words, the creativity, resourcefulness and innovative potentiality of the
employees can be utilized to solve organizational problems.
Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behaviour
at work, while Theory Y presents an optimistic view of the employees’ nature and behaviour at
work. If correlate it with Maslow’s theory, we can say that Theory X is based on the assumption
that the employees emphasize on the physiological needs and the safety needs; while Theory X is
based on the assumption that the social needs, esteem needs and the self-actualization needs
dominate the employees.
5.4. Leaders Vs Managers
Manager Leader
1. Involves coping with complexity 1. Involves coping with change
2. Administrator 2. Innovator
3. He maintains things 3. He develops things
4. He controls people 4. He inspires people
5. It is a short term view 5. Leader will have long term view
6. He asks who and when 6. He asks what and why
7. Managers initiate things 7. Hw originates things
8. He accepts the status quo 8. He challenges status quo
9. Managers do things right. 9. Leaders do right things
5.5. Power and politics
5.5.1.Definition and types of power:
“Power is potential ability to influence behavior to change the course of events to overcome
resistance, and to get people do things that they would not otherwise do.”

-Jeffry pfeffer
Power is capacity of persons to
make others work. Thus, it can
be said: power is sheer
capacity of a person, not to do,
but to make others to do the
expected work.
5.5.2. Types of power:
1. Coercive Power: coercive power is based on leader’s ability or position to coerce others
through fear element.
2. Connection Power: Connection power is based on leader’s connection with influential people.
It is perceived association of the leader with influential persons in the organization.
3. Reward Power: Reward power is based on leader’s position or ability to reward. Reward
power is opposite to coercive power. It is the power to influence subordinates’ behavior through
positive approach.
4. Legitimate Power: Legitimate power is based on leader’s formal right, role, or position to
make decisions and/or to order others. Legitimate power is the perception that leader has the
right to make decisions and/or to order others because of title, role, status, or position.
5. Referent Power: Referent power is based on Leader’s charisma – impressive skills or qualities.
Charisma refers to a leader’s ability to influence other by his personal magnetism, enthusiasm
and strongly held convictions.
6. Information Power: Information power is based on leader’s ability to access, possess or share
useful information. It is the perception of followers that leader has the power to access, possess,
share and use useful information.
7. Expert Power: Expert power is based on leader’s expert knowledge in relevant field. It is the
perception of people that the leader has relevant expert knowledge to direct their action.
5.5.2. Influenceability of the target of power: H. Joseph Reitz and others identified following
characteristics of the target that affect degree of influenceability of the leader.
1. Dependency
2. Uncertainty
3. Personality
4. Ego states

5. Intelligence or brilliance
6. Gender
7. Age
8. Culture
5.5.3. Factors affecting influenceability:
1. Substitutability (availability of other influencer)
2. Centrality (availability of other influencer)
3. Discretion (degree of flexibility and freedom)
4. Visibility (making other know his source of power)
5. Scarcity (non-availability of help or assistance)
5.5.4. Political implications of power: politics is the diplomacy the people use to acquire power.
Power enables to satisfy all needs. Power is the base or source to
a. Gain high position and status.
b. Acquire more authority to decide, command and control
c. Enable power holder to get and give other types of rewards
Political behavior is defined as “Activities that are not required as art of one’s formal role in the
organization, but that influences, or attempt to influence, the distribution of advantages and
disadvantages within organization. People play politics for gaining more compared to others. It is
like a silent war for power and position.
Walter Nord suggests four postulates of power in organization that focus on political realities.
a. Organizations are composed of coalitions that compete with one another for resources,
energy and influence.
b. Various coalitions will seek to protect their interest and positions of influence.
c. The unequal distribution of power itself has dehumanizing effect.
d. The exercise of power within organization is a very crucial aspect of the exercise of
power within the large social system.
5.5.5. Organisational Politics – Definition and features:
“organizational politics consists of internal acts of influence undertaken by individuals or grops
to enhance or protect their self-interest when conflicting courses of action are possible.”
-Barbara Gray and Sony

“Politics in organization refers to those activities that are not required as part of one’s formal role
in the oranisation, but that influence, or attempt to influence, the distribution of advantage and
disadvantage within the organization.
-Farewell and Peerson
Features of Organisational Politics:
1. Organizational politics is the reality of today’s organization and cannot be totally
prevented.
2. Power is the key drive that leads to political behavior.
3. Organizational politics is aimed at taking discriminative advantages or avoiding
disadvantages.
4. It is not officially blessed. It is officially not desirable.
5. Political behavior is self serving in nature. It benefits only the player at the cost of others.
6. It is intentional. It involves deliberate or calculated acts or strategies.
7. It is irrational. It involves irrational or illegitimate acts.
8. It contains different tactics to avail discriminative benefits.
9. If it is perceived objectively and managed carefully, it contributes positively.
10. Degree of political behavior depends on people, management practices, and organization
structure and climate.
55.6. Factors in organizational politics:
“Robert” considers mainly five factors that are responsible for political behavior in organisation.
1. Resources
2. Decisions
3. Goals
4. Technical and external environment, and
5. Change
Important factors affecting organizational politics are:
1. Allocation of resources
2. Type of decisions
3. Degree of goal clarity
4. Degree of trust
5. Role ambiguities
6. Organizational structure

7. Technical and external environment

8. Change
9. Communication
10. Other factors (limited opportunities, higher ambition, biased performance evaluation,
inability or achieve better results by own efforts, higher or unrealistic performance
pressure.)
5.5.7. Political strategies or Types of Organisational politics:
Political strategies are well calculated political acts or tactics that people, as individuals or as
group members, play for power acquisition.
Andrew J DuBrin, in his publications Human Relations, 1978 and winning office politics, 1990
described twelve important strategies that provide better nsight into power and politics in today’s
organizations.
1. Maintaining alliances with powerful people
2. Embrace or demolish
3. Divide and rule
4. Manipulate classified information
5. Make a quick showing
6. Collect and use IOUs
7. Avoid decisive engagement
8. Attacking and blaming others
9. Progress one step at a time
10. Wait for a crisis
11. Take counsel with caution
12. Be aware of resources dependence
13. Others (rule manipulation, creating obligation and logical persuasion)
5.5.8. Guidelines to minimize or regulate political behavior:
Excessive political climate adversely affects relations and, ultimately, productivity, politics in
organization must be treated with care. It affects negatively if it is ignored or underestimated.
Experts have suggested a number of guidelines to minimize political behavior.
1. Keeping communication open
2. Non-political and ethical behavior of role models
3. Keeping watch on dirty games players who play games for self interest.

4. Protecting individual privacy interest

5. Preventing such events and situations that have potential to promote internal politics
6. Using value or fair judgment
7. Ensuring sufficient supply of resources and fair allocation
8. Formulating clear rules, open policies and easy procedures
9. Emphasizing meaningful employees involvement and empowerment
10. Designing job properly and availing necessary inputs and facilities.

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OB STUDY MATERIAL Dr. CH. RAVIVARMA, P.

Unit-II: Personality – types – Factors influencing personality – Theories – Learning – Types of

Unit-III: Attitudes – Characteristics – Components – Formation – Measurement- Values.

Unit-IV: Organization structure – Formation – Groups in organizations – Influence – Group

SANJEEV DEGREE COLLEGE, KAKINDA Page 1

1.1. Meaning & Definition

1.2. Need and Importance of organizational behavior

1.3. Nature and scope of Organizational Behavior

SANJEEV DEGREE COLLEGE, KAKINDA Page 2

➢ O.B seeks to balance human & technical values at work.

SANJEEV DEGREE COLLEGE, KAKINDA Page 3

➢ Individual behavior, attitude and learning

SANJEEV DEGREE COLLEGE, KAKINDA Page 4

SANJEEV DEGREE COLLEGE, KAKINDA Page 5

SANJEEV DEGREE COLLEGE, KAKINDA Page 6

Bandura identified five basic human capabilities as a part of SCT.

SANJEEV DEGREE COLLEGE, KAKINDA Page 7

SANJEEV DEGREE COLLEGE, KAKINDA Page 8

SANJEEV DEGREE COLLEGE, KAKINDA Page 9

5. The S-O-B-C Model:

SANJEEV DEGREE COLLEGE, KAKINDA Page 10

1.6. Role of Organisational Behaviour:

SANJEEV DEGREE COLLEGE, KAKINDA Page 11

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UNIT II: Personality – types – Factors influencing personality – Theories – Learning –

2.1. Personality – Meaning, definition and types

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2.3. Theories of Personality

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Locus of Control Self-Monitoring Abilities

Situations/Inputs Resulting Behaviour

2.4. Learning and Types of Learning

d. Same task and different patterns of acquisition

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2.6. Learning theories

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Classical or Respondent Conditioning

Conditioned Learning - New or

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1. Identification: The first step in the OB Mod is identification of performance related

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2.8. Misbehavior – types of misbehavior

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beneficial as well as adverse consequences of the intervention(s) designed to control these

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high levels of observed interpersonal misbehavior (e.g., aggression, bullying, withholding

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Unit-III: Attitudes – Characteristics – Components – Formation – Measurement- Values.