Organizational Behaviour

Organizational Behavior
UNIT - 1 Introduction, definition, historical development, fundamental principles of OB,
contributing disciplines, approaches, challenges and opportunities.

INTRODUCTION:

Organization Behaviour (OB) is the systematic study and careful application of knowledge about
how people as individuals and as groups act within organizations. It strives to identify ways in
which people can act more effectively. OB is a scientific discipline in which a large number of
research studies are constantly adding to its knowledge base.

OB- Definition

Organizational behaviour is a field of study that investigates the impact that individuals, groups
and organizational structure have on behaviour within the organization, for the purpose of
applying such knowledge towards improving an organizational effectiveness.

The above definition has three main elements; first organizational behaviour is an investigative
study of individuals and groups, second, the impact of organizational structure on human
behaviour and the third, the application of knowledge to achieve organizational effectiveness.

These factors are interactive in nature and the impact of such behaviour is applied to various
systems so that the goals are achieved. The nature of study of organizational behaviour is
investigative to establish cause and effect relationship.

Organizational behaviour can also be defined as :- The study and application of knowledge about
human behaviour related to other elements of an organization such as structure, technology and
social systems (According to LM Prasad).

According to Stephen P Robins defines :- Organizational behaviour as a systematic study of the

actions and attitudes that people exhibit within organizations.

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Characteristics of Organizational Behaviour

1. OB is Inter-disciplinary in nature, which means it integrates the behavioural sciences with

other social sciences.

2. OB has research knowledge and conceptual framework as its emerging base.

3. It is an applied behavioural process which is built on contribution from several behavioural

disciplines such as Psychology, Sociology, socialpsychology, anthropology and Political science.

Goals of OB :- There are four goals of OB

1. To describe systematically how people behave under a variety of conditions.

2. To Understand why people behave as they do.

3. To predict future employee behavior.

4. To control and develop some human activity at work.

Historical development of OB discipline. :- A large number of people have contributed to the

growth of OB as a discipline. The most important ones have been described below:

A. Adam Smith‘s discussions in the Wealth of nations published in 1776 stated that
organizations and society would reap from the division of labor. He concluded that division of
labor increased productivity by raising each worker‘s skill and dexterity, by saving time
otherwise lost in changing tasks. The development of assembly line production process in the
early 20th century was obviously stimulated by the economic advantages of work specialization
(arising out of division of labor) as stated in the work of Smith.

B. The other significant work which influenced this philosophy was that of the work of Charles
Babbage in 1832 titled On the Economy of Machinery and Manufactures. He added the
following to Smith‘s list of advantages that can be accrued from division of labor:

1. It reduces the time needed to learn a job

2. Reduced wastage of material during the learning process

3. Allowed attainment of increased skill levels

4. Careful match of people‘s skills and physical abilities with specific tasks

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Thus in the writings of these writers the benefits of division of labor were being highlighted
where the maximum emphasis was on raising productivity and minimizing wastage of resources
and time.

Very little consideration was given towards the human elements in the workplace.

C. Henri Fayol, a mining engineer and manager by profession, defined the nature and working
patterns of the twentieth-century organization in his book, General and Industrial Management,
published in 1916. In it, he laid down what he called 14 principles of management. This theory is
also called the Administrative Theory. The principles of the theory are:

1. Division of work: tasks should be divided up with employees specializing in a limited set of
tasks so that expertise is developed and productivity increased.

2. Authority and responsibility: authority is the right to give orders and entails enforcing them
with rewards and penalties; authority should be matched with corresponding responsibility.

3. Discipline: this is essential for the smooth running of business and is dependent on good
leadership, clear and fair arguments, and the judicious application of penalties.

4. Unity of command: for any action whatsoever, an employee should receive orders from one
superior only; otherwise authority, discipline, order, and stability are threatened.

5. Unity of direction: a group of activities concerned with a single objective should be co-
coordinated by a single plan under one head.

6. Subordination of individual interest to general interest: individual or group goals must not be
allowed to override those of the business.

7. Remuneration of personnel: this may be achieved by various methods but it should be fair,
encourage effort, and not lead to overpayment.

8. Centralization: the extent to which orders should be issued only from the top of the
organization is a problem which should take into account its characteristics, such as size and the
capabilities of the personnel.

9. Scalar chain (line of authority): communications should normally flow up and down the line of
authority running from the top to the bottom of the organization, but sideways communication
between those of equivalent rank in different departments can be desirable so long as superiors
are kept informed.

10. Order: both materials and personnel must always be in their proper place; people must be
suited to their posts so there must be careful organization of work and selection of personnel.

11. Equity: personnel must be treated with kindness and justice.

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12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because of the
time required for the development of expertise.

13. Initiative: all employees should be encouraged to exercise initiative within limits imposed by
the requirements of authority and discipline.

14. Esprit de corps: efforts must be made to promote harmony within the organization and
prevent dissension and divisiveness.

The management functions, that Fayol stated, consisted of planning, organizing, commanding,
co- coordinating and controlling. Many practicing managers, even today, list these functions as
the core of their activities. Fayol was also one of the first people to characterize a commercial
organization‘s activities into its basic components. He suggested that organizations could be sub-
divided into six main areas of activity:

1. Technical

2. Commercial

3. Financial

4. Security

5. Accounting

6. Management.

In defining the core principles governing how organizations worked and the contribution of
management to that process, Fayol laid down a blueprint that has shaped organization thinking
for almost a century.

Second Option ( for Histrocial Development )

Scientific management implies the application of scientific methods of study and analysis to the
problems of management. It is a systematic and thoughtful approach to the job of management as
compared to the rule of thumb, or trial and error approach.

Fredrick Winslow Taylor is known as the father of scientific management. According to him,
Scientific management means knowing exactly what you want your men to do and seeing that
they do it in the best and the cheapest way.

Scientific management is based upon the following principles-

I. Science not rule of Thumb.

The first principle of scientific management requires scientific study and analysis of each
element of a job in order to replace the old rule of thumb or trial & error approach.

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II. Scientific selection, training and development of workers.

This principle requires that workers should be selected and trained in accordance with the
requirements of the job, to be entrusted to them. Instead of allowing workers to learn themselves,
systematic training and development programmes should be designed to improve their skills and
efficiency.

III. Close cooperation between workers and management.

Close cooperation should be developed between workers and management to ensure that work is
done in accordance with the developed scientific principles.

IV. Equal division of work and responsibility.

Management should decide the methods of work, working conditions, time for completion of
work etc. instead of leaving them to the discretion of the workers. Work and responsibilities
should also be equally divided among the workers.

V. Maximum prosperity for both employers and employees.

Maximum output and optimum utilization of resources will bring higher profits to the employees
coupled with higher wages and salaries for employees.

VI. Mental revolution.

It means a complete change in the outlook of both management and workers with respect to their
mutual relations and in relation to work effort.

Frederick W. Taylor published his Principles of Scientific Management‘ in 1911. Another

influential proponent of Scientific management was Henry L. Gantt who in 1901 called for
scientific selection of workers and harmonious cooperation between labour and management.

The Human Relations Movement

Elton Mayo is known as the founder of the Human Relations Movement, and is known for his
research including the Hawthorne Studies, and his book The Social Problems of an Industrialised
Civilization (1933). In the 1920s Elton Mayo, a professor of Industrial Management at Harvard
Business School, and his protégé Fritz J. Roethlisberger led a landmark study of worker behavior
at Western Electric, the manufacturing arm of AT&T. Fritz Roethlisberger and W.J. Dickson
were the first to publish comprehensive findings of the Hawthorne experiments in 1937 and
authored Management and the Worker in 1939, a comprehensive statement of the research and
findings. Roethlisberger was a lead researcher in the Hawthorne project and a leader in the
Human Relations movement. Dickson was Chief of Employee Relations Research Department at
the Hawthorne plant and an instrumental contributor to the project the research he conducted
under the Hawthorne Studies of the 1930s showed the significance of groups in affecting the

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behavior of individuals at work. He carried out a number of investigations to look at ways of

improving productivity, for example changing lighting conditions in the workplace. His findings
were that work satisfaction depended to a large extent on the informal social pattern of the
workgroup. Where ever norms of cooperation and higher output were established it was due to a
feeling of importance. Physical conditions or financial incentives had little motivational value.
People will form workgroups and this can be used by management to benefit the organization.

Summary of Mayo‘s Beliefs:

Individual workers cannot be treated in isolation, but must be seen as members of a group.
Monetary incentives and good working condition are less important to the individual than the
need to belong to a group. Informal or unofficial groups formed at work have a strong influence
on the behavior of those workers in a group Managers must be aware of these 'social needs' and
cater for them to ensure that employees collaborate with the official organization rather than
work against it.

He advised:

1. To make others feel important through a sincere appreciation of their efforts

2. Seek to make a good impression

3. Win people to your way of thinking by letting others do the talking, being sympathetic and
never telling others that they are wrong

4. Change people by praising their good traits and giving chance to others to save their face

Fundamental principles of OB.

The subject Organizational Behaviour is based on certain fundamental concepts, which revolve
around the nature of people and organizations. Every discipline, be it a social science or a
physical science, will flourish on definite assumptions.

The basic assumptions are:

1. Every individual is different from other individuals.

2. Whole person.

3. Behaviour of an individual is caused.

4. An individual has dignity.

5. Organizations are social system.

6. Mutuality of interest among Organizational members.

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7. Holistic Organizational Behavior.

1. Individual differences:

Each person in the world is individually different. Each one is different from the other in several
ways whether it is intelligence, physique or any such trait. By birth each person is unique and
individual experiences after birth make them even more different. It is because of individual
differences that Organizational Behavior begins with the individual.

2. A whole person:

When an individual is appointed his/her skill alone is not hired, social background, likes and
dislikes, pride and prejudice are hired.

3. Caused behavior:

The Behavior of the individuals is not random, it is caused (i.e., he react to some situation). This
behavior is directed towards someone that the employees believe, rightly or wrongly, is in his/her
interest.

4. Human dignity:

This concept is more concerned with ethical philosophy than scientific. It confirms that people
are to be treated differently from other factors of production because they are of high order in the
universe. That is they are to be treated with respect and dignity.

5. Organizations are social systems:

People need psychological needs, as well as social needs also like social roles and status. Their
behavior is influenced by their group as well as by their individual drives. There are two types of
social systems. One is the formal and the others the informal.

6. Mutuality of interest:

Mutual interest is represented by the statement that organization need people and people also
need organization. Peope see organizations as a basis to help them reach their goals , while at the
same time organizations need people to help them to attain their organizational objectives.

7. Holistic concept:

When the above six fundamental concepts of organizational behavior are placed together ,
holistic concept emerges. This concept interprets people organization relationship in terms of the
whole person, whole group, whole organization and the whole social system.

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Figure: A Basic OB Model

Inputs :-

Inputs are the variables like personality, group structure, and organizational culture that lead to
processes. These variables set the stage for what will occur in an organization later. Many are
determined in advance of the employment relationship. For example, individual diversity
characteristics, personality, and values are shaped by a combination of an individual‘s genetic
inheritance and childhood environment. Group structure, roles, and team responsibilities are
typically assigned immediately before or after a group is formed. Finally, organizational
structure and culture are usually the result of years of development and change as the
organization adapts to its environment and builds up customs and norms.

Processes :-

If inputs are like the nouns in organizational behavior, processes are like verbs. Processes are
actions that individuals, groups, and organizations engage in as a result of inputs and that lead to
certain outcomes. At the individual level, processes include emotions and moods, motivation,
perception, and decision making. At the group level, they include communication, leadership,
power and politics, and conflict and negotiation. Finally, at the organizational level, processes
include human resource management and change practices.

Outcomes

Outcomes are the key variables that you want to explain or predict, and that are affected by some
other variables. What are the primary outcomes in OB? Scholars have emphasized individual-
level outcomes like attitudes and satisfaction, task performance, citizenship behavior, and
withdrawal behavior. At the group level, cohesion and functioning are the dependent variables.
Finally, at the organizational level we look at overall profitability and survival. Because these

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outcomes will be covered in all the chapters, we‘ll briefly discuss each here so you can
understand what the goal of OB will be.

Contributing Disciplines to OB.

Organizational behaviour is an applied behavioural science built on contributions from a number

of behavioral disciplines, mainly psychology and social psychology, sociology, and
anthropology.

Psychology‘s contributions have been mainly at the individual or micro level of analysis, while
the other disciplines have contributed to our understanding of macro concepts such as group
processes and organization. The following exibit is an overview of the major contributions to the
study of Organizational behaviour:

Psychology

Psychology seeks to measure, explain, and sometimes change the behavior of humans and other
animals. Those who have contributed and continue to add to the knowledge of OB are learning
theorists, personality theorists, counseling psychologists, and, most important, industrial and
organizational psychologists. Early industrial/organizational psychologists studied the problems
of fatigue, boredom, and other working conditions that could impede efficient work
performance. More recently, their contributions have expanded to include learning, perception,
personality, emotions, training, leadership effectiveness, needs and motivational forces, job
satisfaction, decision-making processes, performance appraisals, attitude measurement,
employee-selection techniques, work design, and job stress.

Social Psychology

Social psychology, generally considered a branch of psychology, blends concepts from both
psychology and sociology to focus on peoples‘ influence on one another. One major study area is
change how to implement it and how to reduce barriers to its acceptance. Social psychologists
also contribute to measuring, understanding, and changing attitudes; identifying communication
patterns and building trust. Finally, they have made important contributions to our study of group
behavior, power, and conflict.

Sociology

While psychology focuses on the individual, sociology studies people in relation to their social
environment or culture. Sociologists have contributed to OB through their study of group
behavior in organizations, particularly formal and complex organizations. Perhaps most
important, sociologists have studied organizational culture, formal organization theory and
structure, organizational technology, communications, power, and conflict.

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Anthropology

Anthropology is the study of societies to learn about human beings and their activities.
Anthropologists‘ work on cultures and environments has helped us understand differences in
fundamental values, attitudes, and behavior between people in different countries and within
different organizations. Much of our current understanding of organizational culture,
organizational environments, and differences among national cultures is a result of the work of
anthropologists or those using their methods.

Political Science

Polictical Science is the study of the Behaviour of Individual and group with in the organization
which represents the political enviournment like conflict may be with the employees or with the
management, & which represnets the organizational power and politics

Challenges and Opportunities faced in OB.

Some of the most critical issues confronting managers for which OB offers solutions are:

I. Responding to Economic Pressures

When the U.S. economy plunged into a deep and prolonged recession in 2008, virtually all other
large economies around the world followed suit. Layoffs and job losses were widespread, and
those who survived the axe were often asked to accept pay cuts. Managing employees well when
times are tough is just as hard as when times are good if not more so. But the OB approaches
sometimes differ. In good times, understanding how to reward, satisfy, and retain employees is at
a premium. In bad times, issues like stress, decision making, and coping come to the fore.

II. Responding to Globalization

Organizations are no longer constrained by national borders. Burger King is owned by a British
firm, and McDonald‘s sells hamburgers in Moscow. ExxonMobil, a so called U.S. company,
receives almost 75 percent of its revenues from sales outside the United States. New employees
at Finland-based phone maker Nokia are increasingly being recruited from India, China, and
other developing countries non-Finns now outnumber Finns at Nokia‘s renowned research
Center in Helsinki. The world has become a global village. In the process, the manager‘s job has
changed.

III. Managing Workforce Diversity

Workforce diversity acknowledges a workforce of women and men; many racial and ethnic
groups individuals with a variety of physical or psychological abilities . Managing this diversity
is a global concern. Most European countries have experienced dramatic growth in immigration
from the Middle East, Argentina and Venezuela host a significant number of migrants from other

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South American countries, and nations from India to Iraq to Indonesia find great cultural
diversity within their borders.

IV. Improving Customer Service

Today, the majority of employees in developed countries work in service jobs, including 80
percent in the United States. In Australia, 73 percent work in service industries. In the United
Kingdom, Germany, and Japan, the percentages are 69, 68 and 65, respectively. Service jobs
include technical support representatives, fast-food counter workers, sales clerks, waiters and
waitresses, nurses, automobile repair technicians, consultants, credit representatives, financial
planners, and flight attendants. The common characteristic of these jobs is substantial interaction
with an organization‘s customers. And because an organization can‘t exist without customers
whether it is American Express, L. L. Bean, a law firm, a museum, a school, or a government
agency management needs to ensure employees do what it takes to please customers. At
Patagonia a retail outfitter for climbers, mountain bikers, skiers and boarders, and other outdoor
fanatics customer service is the store manager‘s most important general responsibility: Instill in
your employees the meaning and importance of customer service as outlined in the retail
philosophy Our store is a place where the word no does not exist‘; empower staff to use their
best judgment‘ in all customer service matters.

OB can help managers at Patagonia achieve this goal and, more generally, can contribute to
improving an organization‘s performance by showing managers how employee attitudes and
behavior are associated with customer satisfaction. Many an organization has failed because its
employees failed to please customers. Management needs to create a customer- responsive
culture.

OB can provide considerable guidance in helping managers create such cultures in which
employees are friendly and courteous, accessible, knowledgeable, prompt in responding to
customer needs, and willing to do what‘s necessary to please the customer.

V. Stimulating Innovation and Change

Today‘s successful organizations must foster innovation and master the art of change, or they‘ll
become candidates for extinction. Victory will go to the organizations that maintain their
flexibility, continually improve their quality, and beat their competition to the marketplace with a
constant stream of innovative products and services. Domino‘s single-handedly brought on the
demise of small pizza parlors whose managers thought they could continue doing what they had
been doing for years. Amazon.com is putting a lot of independent bookstores out of business as it
proves you can successfully sell books (and most anything else) from a Web site. After years of
lackluster performance, Boeing realized it needed to change its business model. The result was
its 787 Dreamliner and a return to being the world‘s largest airplane manufacturer.

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VI. Coping with “Temporariness”

Globalization, expanded capacity, and advances in technology have required organizations to be

fast and flexible if they are to survive. The result is that most managers and employees today
work in a climate best characterized as temporary. Workers must continually update their
knowledge and skills to perform new job requirements. Production employees at companies such
as Caterpillar, Ford, and Alcoa now need to operate computerized production equipment. That
was not part of their job descriptions 20 years ago. In the past, employees were assigned to a
specific work group, gaining a considerable amount of security working with the same people
day in and day out. That predictability has been replaced by temporary work groups, with
members from different departments, and the increased use of employee rotation to fill
constantly changing work assignments. Finally, organizations themselves are in a state of flux.
They continually reorganize their various divisions, sell off poorly performing businesses,
downsize operations, subcontract noncritical services and operations to other organizations, and
replace permanent employees with temporary workers. Today‘s managers and employees must
learn to cope with temporariness, flexibility, spontaneity, and unpredictability. The study of OB
can help you better understand a work world of continual change, overcome resistance to change,
and create an organizational culture that thrives on change.

VII. Working in Networked Organizations

Networked organizations allow people to communicate and work to gethereven though they may
be thousands of miles apart. Independent contractors can telecommute via computer to
workplaces around the globe and change employers as the demand for their services changes.
Software programmers, graphic designers, systems analysts, technical writers, photo researchers,
book, and media editors, and medical transcribers are just a few examples of people who can
work from home or The next generation of employees is likely to show similar concerns. Most
college and university students say attaining a balance between personal life and work is a
primary career goal; they want a life as well as a job. Organizations that don‘t help their people
achieve work–life balance will find it increasingly difficult to attract and retain the most capable
and motivated employees.

IX. Creating a Positive Work Environment

Although competitive pressures on most organizations are stronger than ever, some organizations
are trying to realize a competitive advantage by fostering a positive work environment. Real
growth area in OB research is positive organizational scholarship (also called positive
organizational behavior), which studies how organizations develop human strengths, foster
vitality and resilience, and unlock potential.

Researchers in this area say too much of OB research and management practice has been
targeted toward identifying what‘s wrong with organizations and their employees.

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X. Improving Ethical Behavior

In an organizational world characterized by cutbacks, expectations of increasing productivity,

and tough competition, it‘s not surprising many employees feel pressured to cut corners, break
rules, and engage in other questionable practices. Increasingly they face ethical dilemmas and
ethical choices, in which they are required to identify right and wrong conduct. Should they blow
the whistle if they uncover illegal activities in their company? Do they follow orders with which
they don‘t personally agree? Should they give an inflated performance evaluation to an employee
they like, knowing it could save that employee‘s job? Do they play politics to advance their
career. other non-office locations.

VIII. Helping Employees Balance Work–Life Conflicts

The typical employee in the 1960s or 1970s showed up at a specified workplace Monday through
Friday and worked for clearly defined 8- or 9-hour chunks of time. That‘s no longer true for a
large segment of today‘s workforce. Employees are increasingly complaining that the line
between work and nonwork time has become blurred, creating personal conflicts and stress. At
the same time, today‘s workplace presents opportunities for workers to create and structure their
own roles.Employees increasingly recognize that work infringes on their personal lives, and
they‘re not happy about it. Recent studies suggest employees want jobs that give them flexibility
in their work schedules so they can better manage work–life conflicts. In fact, balancing work
and life demands now surpasses job security as an employee priority.

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UNIT 2

FOUNDATIONS OF INDIVIDUAL BEHAVIOUR:

Individual behaviour-Foundations.
According to Kurt Lewin, behavior is a function of the person and environment. Lewin
expressed this idea in an equation: B= f (P, E) where B= Behavior, P = Person and E=
Environment. This idea has been developed by the interactional psychology approach.

Intellectual abilities.
I. Number aptitude: It is an ability to do speedy and accurate arithmetic.
II. Verbal comprehension: It is the ability to understand what is read and heard and the
relationship of words to each other.
III. Perceptual speed: It is the ability to identify visual similarities and differences quickly and
accurately.
IV. Inductive reasoning: It is the ability to identify a logical sequence in a problem and then
solve the problem.
V . Deductive reasoning: It is the ability to see logic and assesses the implication of an
argument.
VI. Spatial visualization: It is the ability to imagine how an object would look like it its position
in space was changed.
VII. Memory: It is the ability to retain and recall past experience.

Physical abilities.
Though the changing nature of work suggests intellectual abilities are increasingly important for
many jobs, physical abilities have been and will remain valuable. Research on hundreds of jobs
has identified nine basic abilities needed in the performance of physical tasks. These are
described in following exhibit. Individuals differ in the extent to which they have each of these
abilities. Not surprisingly, there is also little relationship among them: a high score on one is no
assurance of a high score on others. High employee performance is likely to be achieved when
management has ascertained the extent to which a job requires each of the nine abilities and then
ensures that employees in that job have those abilities.

Role of disabilities.
The importance of ability at work obviously creates problems when we attempt to formulate
workplace policies that recognize diversity in terms of disability status. As we have noted,
recognizing that individuals have different abilities that can be taken into account when making
hiring decisions is not problematic. However, it is discriminatory to make blanket assumptions
about people on the basis of a disability. It is also possible to make accommodations for
disabilities.

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In the US, with the passage of the Americans with Disabilities Act (ADA) in 1990, the
representation of individuals with disabilities in the U.S. workforce rapidly increased. According
to the ADA, employers are required to make reasonable accommodations so their workplaces
will be accessible to individuals with physical or mental disabilities. Making inferences about the
relationship between disability and employment outcomes is difficult because the term disability
is so broad. The U.S. Equal Employment Opportunity Commission classifies a person as
disabled who has any physical or mental impairment that substantially limits one or more major
life activities. Examples include missing limbs, seizure disorder, Down Syndrome, deafness,
schizophrenia, alcoholism, diabetes, and chronic back pain. These conditions share almost no
common features, so there‘s no generalization about how each condition is related to
employment. Some jobs obviously cannot be accommodated to some disabilities—the law and
common sense recognize that a blind person could not be a bus driver, a person with severe
cerebral palsy could not be a surgeon, and a person with profound mobility constraints probably
could not be a police patrol officer. However, the increasing presence of computer technology
and other adaptive devices is shattering many traditional barriers to employment. One of the
most controversial aspects of the ADA is the provision that requires employers to make
reasonable accommodations for people with psychiatric disabilities. Most people have very
strong biases against those with mental illnesses, who are therefore reluctant to disclose this
Information to employers. Many who do, report negative consequences. The impact of
disabilities on employment outcomes has been explored from a variety of perspectives. On the
one hand, a review of the evidence suggests workers with disabilities receive higher performance
evaluations. However, this same review found that despite their higher performance, individuals
with disabilities tend to encounter lower performance expectations and are less likely to be hired.
These negative effects are much stronger for individuals with mental disabilities, and there is
some evidence to suggest mental disabilities may impair performance more than physical
disabilities: Individuals with such common mental health issues as depression and anxiety are
significantly more likely to be absent from work.

Personality- Meaning.
Personality is the relatively stable set of characteristics that influence an Individual‘s behaviour.
It is the sum total of ways in which an individual reacts and interacts with others, measurable
traits a person exhibits.

Determinants of Personality

Determinants of Personality are:

1. Heredity :- These refer to those factors that are determined at birth. Physical stature,
facial attractiveness, gender, temperament, muscle composition, energy level, etc are
characters that are influenced by heredity. According to heredity theory, the personality

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of an individual depends on the molecular structure of the genes located in the

chromosome. Traits such as shyness, fear, distress, are caused by genetic characteristics.

2. Environment :- Environment includes the culture in which we are raised, our early
conditioning, rules among our family, friends and social group. These factors play an
important rule in sharing our personality. Culture establishes rules, attitudes and values
that are passed from one generation to the next. A belief held in one culture may not be
supported in other culture.

3. Situation :- An individual's personality although static and consistent, changes in

different situations. Different situations impose constraints to behavior. Example: A
temple or an employment interview offers a lot of restrictions. A picnic or a public park
offers little or no restrictions.

Traits of personality
Personality traits are enduring characteristics that describe an individual‘s behavior. Combing
these traits into a group forms an individual‘s personality. Personality traits such as introversion,
friendliness, conscientiousness, honesty, and helpfulness are important because they help explain
consistencies in behavior. The most popular way of measuring traits is by administering
personality tests on which people self-report about their own characteristics. Psychologists have
investigated hundreds of traits using the self-report approach, and this research has found many
personality traits that have important implications for behavior.

Big Five Model of Personality Traits.

In psychology, the Big Five personality traits are five broad domains or dimensions of
personality that are used to describe human personality. The Big Five factors are openness to
experience, conscientiousness, extraversion, agreeableness, and emotional stability.

1. Extraversion :- The extraversion dimension captures our comfort level with

relationships. Extraverts tend to be gregarious, assertive, and sociable. Introverts tend to
be reserved, timid, and quiet.
2. Agreeableness. :- The agreeableness dimension refers to an individual‘s propensity to
defer to others. Highly agreeable people are cooperative, warm, and trusting. People who
score low on agreeableness are cold, disagreeable, and antagonistic.
3. Conscientiousness. :- The conscientiousness dimension is a measure of reliability. A
highly conscientious person is responsible, organized, dependable, and persistent. Those
who score low on this dimension are easily distracted, disorganized, and unreliable.
4. Emotional stability :- The emotional stability dimension—often labelled by its converse,
neuroticism—taps a person‘s ability to withstand stress. People with positive emotional

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stability tend to be calm, self-confident, and secure. Those with high negative scores tend
to be nervous, anxious, depressed, and insecure.
5. Openness to experience :- The openness to experience dimension addresses range of
interests and fascination with novelty. Extremely open people are creative, curious, and
artistically sensitive. Those at the other end of the category are conventional and find
comfort in the familiar.

MBTI
The Myers-Briggs Type Indicator (MBTI) assessment is a psychometric questionnaire designed
to measure psychological preferences in how people perceive the world and make decisions.
Hese preferences were extrapolated from the typological theories proposed by Carl Gustav Jung
and first published in his 1921 book Psychological Types. Carl Jung theorized that there are four
principal psychological functions by which we experience the world: sensation, intuition, feeling,
and thinking. One of these four functions is dominant most of the time.
The original developers of the MBTI were Katharine Cook Briggs and her daughter, Isabel
Briggs Myers. Both of them studied extensively the work of Jung, turned their interest of human
behavior into a devotion of turning the theory of psychological types to practical use. They
began creating the indicator during World War II, believing that knowledge of personality
preferences would help women who were entering the industrial workforce for the first time to
identify the sort of war-time jobs that would be "most comfortable and effective"
Today, the Myers-Briggs Type Indicator (MBTI) is the most widely used personality assessment
instrument in the world. It is a 100-question personality test that asks people how they usually
feel or act in particular situations. Respondents are classified as extraverted or introverted (E or
I), sensing or intuitive (S or N), thinking or feeling (T or F), and judging or perceiving (J or P).
These terms are defined as follows:

1. Extraverted (E) versus Introverted (I). Extraverted individuals are outgoing, sociable,
and assertive. Introverts are quiet and shy.
2. Sensing (S) versus Intuitive (N). Sensing types are practical and prefer routine and
order. They focus on details. Intuitive rely on unconscious processes and look at the big
picture.
3. Thinking (T) versus Feeling (F). Thinking types use reason and logic to handle
problems. Feeling types rely on their personal values and emotions.
4. Judging (J) versus Perceiving (P). Judging types want control and prefer their world to
be ordered and structured. Perceiving types are flexible and spontaneous.

Extroverts (E) are energized by interaction with others. They are people of action. Es are pulled
into social life and find it difficult to settle down, read, or concentrate on homework. They may
find college tasks, such as reading, research, and writing challenging because they are solitary
endeavours. They learn best by talking and physically engaging in the environment. Extroverts
learn better in small classroom settings where students can actively engage in conversations with

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peers and professors as opposed to large lecture style classrooms where listening is the primary
activity. Extroverts enjoy oral feedback from professors, as well as conversations before/after
class or during office hours. Additionally, extraverts benefit from study groups where they can
learn through speaking with others.

Introverts (I) are energized by the inner world of reflection, thought, and contemplation. They
need space and time alone. Introverts like reading, lectures, and written work. Therefore, they
generally do well in traditional classroom settings. Introverts may hesitate to speak up in class
but may benefit from one-on one conversations with a professor or written feedback. Online
courses may work well for introverts as many often engage more in chat rooms or via email than
contributing orally to a class discussion. Introverts may need time alone to reflect, process, and
reenergize before joining a group or study group.

Sensing (S) people rely heavily on their five senses to take in information. They may be good
listeners or visually oriented learners. They also enjoy hands-on learning experiences. They like
concrete facts, organization, and structure. They learn well from organized lectures or
presentations. They are good at memorization. Sensing people usually like outlines, clear
guidelines, and specifics. A syllabus is an important learning tool for Sensing types. As Sensing
types often have difficulty with theory, they may struggle in classes where theoretical concepts
are commonplace such as psychology or philosophy.

Intuitive (N) people see the world through intuition. They learn by hunches. Intuitive students
may not read a test question all the way through, sometimes missing a key part. Intuitive types
want to know the theory before deciding that facts are important and will always ask "why".
They are creative and innovative and may struggle following strict sets of instructions or on
multiple choice tests. Ns also work with bursts of energy. Ns will write their term paper and then
finish the required outline.

Thinking (T) people decide on the basis of logic, analysis, and reason. They may be great at
figuring out logical problems and analyzing problems. They may voice their strong opinions in
the classroom. They expect fairness in grading, equal treatment of all students and adherence to
fair classroom policies.

Feeling (F) persons decide on the basis of their feelings, personal likes and dislikes. Feeling
types value harmony and are distressed by interpersonal friction. Harmony in the classroom, with
classmates and with the professor will be of ultimate importance for Feeling types.

Judging (J) types try to order and control their world. They are decisive, may be closed minded,
and are usually well organized. They meet deadlines, like planning, and prefer to work on only
one thing at a time. Judging types will usually have very well organized notebooks, and will
structure their time to complete assignments promptly. Judging types will struggle if changes

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occur and they need to adapt, or if they are required to work with a group that is not as well
organized, or if they need to cram for an exam.

Perceiving (P) types are spontaneous and don't like to be boxed in by deadlines or plans. They
want to gather more information before making a decision. They work at many things at once. Ps
are flexible and often good in emergencies when plans are disrupted. Their biggest problem is
procrastination. Ps may have trouble getting assignments in on time or budgeting their time. hey
may, however, actually do well cramming for an exam or rushing to get a project finished as they
thrive on last-minute pressure.

These classifications together describe 16 personality types, identifying every person by one trait
from each of the four pairs. For example, Introverted/ Intuitive/Thinking/Judging people (INTJs)
are visionaries with original minds and great drive. They are sceptical, critical, independent,
determined, and often stubborn. ESTJs are organizers. They are realistic, logical, analytical, and
decisive and have a natural head for business or mechanics. The ENTP type is a conceptualizer,
innovative, individualistic, versatile, and attracted to entrepreneurial ideas. This person tends to
e resourceful in solving challenging problems but may neglect routine assignments. The MBTI
as been widely used by organizations including Apple Computer, AT&T, Citigroup, GE, 3M Co.

Personality attributes influencing OB

Following are major Personality attributes influencing OB:
1. Core Self-Evaluation
a. Self-Esteem
b. Locus of Control
2. Machiavellianism
3. Narcissism
4. Self-Monitoring
5. Risk Taking
6. Type A vs. Type B Personality
7. Proactive Personality

1. Core Self-Evaluation :- People who have positive core self-evaluations like themselves
and see themselves as effective, capable, and in control of their environment. Those with
negative core self-evaluations tend to dislike themselves, question their capabilities, and
view themselves as powerless over their environment. People with positive core self
evaluations perform better than others because they set more ambitious goals, are more
committed to their goals, and persist longer in attempting to reach these goals. Core self-
evaluations has two main components: Self-Esteem and Locus of Control.

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a. Self-Esteem means people differ in the degree to which they like or dislike,
themselves. This trait is called self esteem. High self esteem believes that they
process the ability they need to succeed at work.
b. Locus of Control means the degree to which people believe they are masters of
their own fate. A person‘s perception of the source of his or her fate is called as
locus of control. It is of two types: a) Internals (Internal locus of control) -
Individuals who believe that they control what happens to them. b) Externals
(External locus of control)- Individuals who believe that what happens to them is
controlled by outside forces such as luck or chance
2. Machiavellianism :- Kuzi is a young bank manager in Taiwan. He‘s had three promotions in
the past 4 years and makes no apologies for the aggressive tactics he‘s used to propel his
career upward. ―I‘m prepared to do whatever I have to do to get ahead,‖ he says. Kuzi
would properly be called Machiavellian. The personality characteristic of Machiavellianism
(often abbreviated Mach ) is named after Niccolo Machiavelli, who wrote in the sixteenth
century on how to gain and use power. An individual high in Machiavellianism is pragmatic,
maintains emotional distance, and believes ends can justify means. ―If it works, use it‖ is
consistent with a high-Mach perspective. A considerable amount of research has found high
Machs manipulate more, win more, are persuaded less, and persuade others more than do low
Machs. 35 They like their jobs less, are more stressed by their work, and engage in more
deviant work behaviors. Yet high-Mach outcomes are moderated by situational factors. High
Machs flourish (1) when they interact face to face with others rather. than indirectly; (2)
when the situation has minimal rules and regulations, allowing latitude for improvisation;
and (3) when emotional involvement with details irrelevant to winning distracts low Machs.
Thus, in jobs that require bargaining skills (such as labor negotiation) or that offer substantial
rewards for winning (such as commissioned sales), high Machs will be productive. But if
ends can‘t justify the means, there are absolute standards of behavior, or the three situational
factors we noted are not in evidence, our ability to predict a high Mach‘s performance will be
severely curtailed.

3. Narcissism :- Hans likes to be the center of attention. He looks at himself in the mirror a lot,
has extravagant dreams, and considers himself a person of many talents. Hans is a narcissist.
The term is from the Greek myth of Narcissus, a man so vain and proud he fell in love with
his own image. In psychology, narcissism describes a person who has a grandiose sense of
self-importance, requires excessive admiration, has a sense of entitlement, and is arrogant.
Evidence suggests that narcissists are more charismatic and thus more likely to emerge as
leaders, and they may even display better psychological health (at least as they self-report).
Despite having some advantages, most evidence suggests that narcissism is undesirable. A
study found that while narcissists thought they were better leaders than their colleagues, their
supervisors actually rated them as worse .As narcissists often want to gain the admiration of
others and receive affirmation of their superiority, they tend to talk down to those who
threaten them, treating others as if they were inferior. Narcissists also tend to be selfish and

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exploitive and believe others exist for their benefit. Their bosses rate them as less effective at
their jobs than others, particularly when it comes to helping people. Subsequent research
using data compiled over 100 years has shown that narcissistic CEOs of baseball
organizations tend to generate higher levels of manager turnover, although curiously,
members of external organizations see them as more influential.

4. Self-Monitoring :- Joyce McIntyre is always in trouble at work. Though she‘s competent,

hardworking, and productive, in performance reviews she is rated no better than average, and
she seems to have made a career of irritating bosses. Joyce‘s problem is that she‘s politically
inept. She‘s unable to adjust her behavior to fit changing situations. As she puts it, I‘m true to
myself. I don‘t remake myself to please others We would describe Joyce as a low self-
monitor Self-monitoring refers to an individual‘s ability to adjust his or her behavior to
internal situational factors. Individuals high in self monitoring show considerable
adaptability in adjusting their behavior to external situation factors. They are highly sensitive
to external cues and can behave differently in different situations, sometimes presenting
striking contradictions between their public persona and their private self. Low self-monitors,
like Joyce, can‘t disguise themselves in that way. They tend to display their true dispositions
and attitudes in every situation; hence, there is high behavioral consistency between who they
are and what they do.

5. Risk Taking :- People differ in their willingness to take chances, a quality that affects how
much time and information they need to make a decision. Although previous studies have
shown managers in large organizations to be more risk averse than growth-oriented
entrepreneurs who actively manage small businesses, recent findings suggest managers in
large organizations may actually be more willing to take risks than entrepreneurs. The work
population as a whole also differs in risk propensity. It makes sense to recognize these
differences and even consider aligning them with specific job demands. A high risk-taking
propensity may lead to more effective performance for a stock trader in a brokerage firm
because that type of job demands rapid decision making. On the other hand, a willingness to
take risks might prove a major obstacle to an accountant who performs auditing activities.
In short we can say that:
 High Risk-Taking Managers
– Make quicker decisions
– Use less information to make decisions
– Operate in smaller and more entrepreneurial organizations
 Low Risk-Taking Managers
– Are slower to make decisions
– Require more information before making decisions
– Exist in larger organizations with stable environments

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6. Type A vs. Type B Personality

Type A Personality people –
 Have competitiveness, time urgency, social status insecurity, aggression, hostility and a
quest for achievements.
 Are always moving, walking, and eating rapidly.
 Feel impatient with the rate at which most events take place.
 Strive to think or do two or more things at once.
 Cannot cope with leisure time.
 Are obsessed with numbers, measuring their success in terms of how many or how much
of everything they acquire.
 Are labelled as Coronary-prone behavior or prone to heart attacks.

Type B Personality people-

 Are relatively free of the type A behaviours and characteristics.
 Never suffer from a sense of time urgency with its accompanying impatience.
 Feel no need to display or discuss either their achievements or accomplishments.
 Play for fun and relaxation, rather than to exhibit their superiority at any cost.
 Can relax without guilt.
 Are less prone to heart attacks.

7. Proactive Personality :- People with this personality identify opportunities, shows initiative,
takes action, and perseveres until meaningful change occurs. They create positive change in
the environment, regardless or even in spite of constraints or obstacles. Not surprisingly, they
have many desirable behaviour that organization Covet. They are more likely than others to
be seen as leaders and to act as change agents. Proactive individuals are more likely to be
satisfied with work and help others more with their tasks, largely because they build more
relationships with others. Proactives are also more likely to challenge the status quo or voice
their displeasure when situations aren‘t to their liking. If an organization requires people with
entrepreneurial initiative, proactives make good candidates; however, they‘re also more
likely to leave an organization to start their own business. As individuals, proactives are more
likely than others to achieve career success. They select, create, and influence work situations
in their favour. They seek out job and organizational information, develop contacts in high
places, engage in career planning, and demonstrate persistence in the face of career obstacles.

Attitude- Meaning & Formation.

An attitude is a psychological tendency expressed when we evaluate a particular entity with
some degree of favour or disfavor. In other words, Attitudes are evaluative statements either

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favorable or unfavorable about objects, people, or events. They reflect how we feel about
something. When I say I like my job, I am expressing my attitude about work.

Two major influences in the formation of attitude are:

I. Direct Experience
Direct experience with something strongly influences attitude towards it. How do you know that
you like biology or dislike math? You have probably formed these attitudes from experience in
studying the subjects. Research has shown that attitudes derived from direct experience are
stronger, held more confidently and more resistant to change than attitudes formed through
indirect experience.

II. Social Learning

In social learning the family, peer groups, religious organizations and culture shape an
individual‘s attitudes indirectly. Children adopt certain attitudes when their parents reinforce
attitudes they approve. Substantial social learning occurs through modeling in which individuals
acquire attitudes by observing others. According to social learning theory, people engage in
crime because of their association with others who engage in crime. Their criminal behavior is
reinforced and they learn beliefs that are favorable to crime. They essentially have criminal
models that they associate with. As a consequence, these individuals come to view crime as
something that is desirable, or at least justifiable in certain situations. Culture also plays a
definite role in attitude development.

Components of Attitude
The three main components of attitude are:
 Affective component: this involves a person‘s feelings / emotions about the attitude
object. For example: ―I am scared of spiders.
 Behavioral component: the way the attitude we have influences how we act or behave.
For example: ―I will avoid spiders and scream if I see one
 Cognitive component: this involves a person‘s belief / knowledge about an attitude
object. For example: ―I believe spiders are dangerous.

This model is known as the ABC model of attitudes. The three components are usually linked
whenever a tension is produced by a conflict between attitudes and behaviour, it is termed as
Cognitive Dissonance. Suppose for example, a salesman is required to sell damaged TV sets for
the full retail price, without revealing the damage to the customers. He believes however that,
this is unethical. This creates a conflict between his attitude (Concealing information from
customers is unethical) and his behaviour (selling defective TVs to uninformed customers.)

Relation between attitude and behaviour.

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Early research on attitudes assumed they were causally related to behavior that is, the attitudes
people hold determine what they do. Common sense, too, suggests a relationship. Isn‘t it logical
that people watch television programs they like, or that employees try to avoid assignments they
find distasteful? However, in the late 1960s, a review of the research challenged this assumed
effect of attitudes on behavior. One researcher Leon Festinger argued that attitudes follow
behavior. Did you ever notice how people change what they say so it doesn‘t contradict what
they do? Perhaps a friend of yours has consistently argued that the quality of Indian cars isn‘t up
to that of imports and that he‘d never own anything but a Japanese or German car. But his dad
gives him a Tata Safari, and suddenly he says Indian cars aren‘t so bad.Festinger proposed that
cases of attitude following behavior illustrate the effects of cognitive dissonance i.e any
incompatibility an individual might perceive between two or more attitudes or between behavior
and attitudes. Festinger argued that any form of inconsistency is uncomfortable and that
individuals will therefore attempt to reduce it. They will seek a stable state, which is a minimum
of dissonance. Research has generally concluded that people do seek consistency among their
attitudes and between their attitudes and their behavior.They either alter the attitudes or the
behavior, or they develop a rationalization for the discrepancy.

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Unit 3
Perception- Meaning and Process.
Perception is a process by which individuals organize and interpret their sensory impressions in
order to give meaning to their environment. However, what we perceive can be substantially
different from objective reality. For example, all employees in a firm may view it as a great
place to work favorable working conditions, interesting job assignments, good pay, excellent
benefits, understanding and responsible management—but, as most of us know, it‘s very
unusual to find such agreement.
The perception process has six different phrases i.e receiving, selecting, organizing, interpreting,
checking and reacting to the stimuli or data. The process is influenced by the perceiver as well
as the situation. The process is as follows-

(a) Receiving: The perception process starts with the receipt of stimuli or data from various
sources. The data`s are received through the sensory organs. The sensory organs are vision,
hearing, smell, touch and taste. Sensory organs not only receives physical object but also
receives data regarding non-physical objects
(b) Selection: After receiving data, some of them are selected for further processing because it is
not possible to select all of them. There are two types of factors, which govern the selection of
data:
o External Factors: These factors influencing the selection of data are location,
intensity, size, contrast, repetition, motion etc.
o Internal Factors: -These factors influencing the selection of data are learning, age
difference, psychological needs, interest etc.

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(c) Organizing: After selection of data they are organized systematically to make it meaningful.
In simple words, the aspect of forming bit of information into meaningful wholes is called
organizing. There are three dimensions of perceptual organizing. Figure ground: It is a principle,
which states that the relationship of a target to its background influences perception. In other
words, according to this principle, the object stands out separately from their background. .
Perceptual Grouping: The principle of grouping includes the similarity, proximity, closure and
continuity. Similarity means objects of similar shape, size and colour should be grouped together
Proximity means to perceive the factors together which are near to each other Closure means to
perceive the whole part when nothing exists. It means to close the, which are unfilled by sensory
organs. Perceptual Constancy: It refers to a person‘s ability to perceive certain characteristics of
an object as remaining constant, despite of variations in the stimuli (data) that provide us
conflicting / contradicting information. Constancy gives a person the sense of stability in a
changing world.
(d) Interpreting: After the data is received and organized, the perceiver interprets or assigns
meaning to the information. Interpretation of stimuli (data) is affected by the characteristics of
the situation, perceiver and the target itself. It is an important phase of perception because only
after interpretation, perception is about to take place. There are several factors that affect the
interpretation of data like attribution, stereo typing, halo effect etc.
(e) Checking: After the data is received and interpreted, the perceiver checks whether his
interpretations are right or wrong. To test the reliability of the interpretation, a person may but up
a series of questions to himself and also answers them to confirm whether his perception about
an individual or object is correct or not. This was one of the way to check the interpretation of
perception. The another way to check the result of interpretation may be done by putting up such
questions to other and confirm with their answers.
(f) Reacting: The last phase in perception is reacting. The perceiver may take some action in
relation to his perception. The action of a perceiver depends upon the perception whether it is
favorable or unfavorable. The action will be positive if perception is favorable and the action will
be negative if perception is unfavorable.

Factors influencing perception.

How do we explain the fact that individuals may look at the same thing yet perceive it
differently? A number of factors operate to shape and sometimes distort perception. These
factors can reside in the perceiver; in the object, or target, being perceived; or in the context of
the situation in which the perception is made (see diagram below). When you look at a target and
attempt to interpret what you see, your interpretation is heavily influenced by your personal
characteristics your attitudes, personality, motives, interests, past experiences, and expectations.
For instance, if you expect police officers to be authoritative or young people to be lazy, you
may perceive them as such, regardless of their actual traits. Characteristics of the target also
affect what we perceive. Loud people are more likely to be noticed in a group than quiet ones.
So, too, are extremely attractive or unattractive individuals. Because we don‘t look at targets in
isolation, the relationship of a target to its background also influences perception, as does our

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tendency to group close things and similar things together. We often perceive women, men,
Whites, African Americans, Asians, or members of any other group that has clearly
distinguishable characteristics as alike in other, unrelated ways as well. Context matters too. The
time at which we see an object or event can influence our attention, as can location, light, heat, or
any number of situational factors. At a nightclub on Saturday night, you may not notice a young
guest dressed to the nines.‖ Yet that same person so attired for your Monday morning
management class would certainly catch your attention (and that of the rest of the class). Neither
the perceiver nor the target has changed between Saturday night and Monday morning, but the
situation is different.

Link between perception and individual decision making.

Individuals in organizations make decisions, choices from among two or more alternatives. Top
managers determine their organization‘s goals, what products or services to offer, how best to
finance operations, or where to locate a new manufacturing plant. Middle- and lower level
managers set production schedules, select new employees, and decide how to allocate pay raises.
Non managerial employees decide how much effort to put forth at work and whether to comply
with a boss‘s request. Organizations have begun empowering their non managerial employees
with decision-making authority historically reserved for managers alone. Individual decision
making is thus an important part of organizational behavior. But the way individuals make
decisions and the quality of their choices are largely influenced by their perceptions. Decision
making occurs as a reaction to a problem. That is, a discrepancy exists between the current state
of affairs and some desired state, requiring us to consider alternative courses of action. If your
car breaks down and you rely on it to get to work, you have a problem that requires a decision on
your part. Unfortunately, most problems don‘t come neatly labeled problem. One person‘s
problem is another person‘s satisfactory state of affairs. One manager may view her division‘s 2
percent decline in quarterly sales to be a serious problem requiring immediate action on her part.
In contrast, her counterpart in another division, who also had a 2 percent sales decrease, might
consider that quite acceptable. So awareness that a problem exists and that a decision might or
might not be needed is a perceptual issue. Every decision requires us to interpret and evaluate
information. We typically receive data from multiple sources and need to screen, process, and
interpret them. Which data are relevant to the decision, and which are not? Our perceptions will
answer that question. We also need to develop alternatives and evaluate their strengths and
weaknesses. Again, our perceptual process will affect the final outcome. Finally, throughout the
entire decision making process, perceptual distortions often surface that can bias analysis and
conclusions.

Emotions :-
Perhaps the least rational way of making decisions is intuitive decision making , an
unconscious process created from distilled experience. It occurs outside conscious thought;
it relies on holistic associations, or links between disparate pieces of information; it‘s fast;
and it‘s affectively charged, meaning it usually engages the emotions. While intuition isn‘t

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rational, it isn‘t necessarily wrong. Nor does it always contradict rational analysis; rather,
the two can complement each other. But nor is intuition superstition, or the product of some
magical or paranormal sixth sense. As one recent review noted, ―Intuition is a highly
complex and highly developed form of reasoning that is based on years of experience and
learning.‖ For most of the twentieth century, experts believed decision makers‘ use of
intuition was irrational or ineffective. That‘s no longer the case. We now recognize that
rational analysis has been overemphasized and, in certain instances, relying on intuition can
improve decision making. But we can‘t rely on it too much. Because it is so unquantifiable,
it‘s hard to know when our hunches are right or wrong. The key is neither to abandon nor
rely solely on intuition, but to supplement it with evidence and good judgment.

Affect
Affect is a generic term that covers a broad range of feelings people experience, including
both emotions and moods. Emotions are intense feelings directed at someone or something.
Moods are less intense feelings than emotions and often (though not always) arise without a
specific event acting as a stimulus.

Mood

A mood is an emotional state. Moods differ from emotions in that they are less specific,

less intense, and less likely to be triggered by a particular stimulus or event. Moods

generally have either a positive or negative valence. In other words, people typically speak

of being in a good mood or a bad mood.

Emotion and their significance

The word emotion includes a wide range of observable behaviors, expressed feelings, and

changes in the body state. This diversity in intended meanings of the word emotion make it

hard to study. For many of us emotions are very personal states, difficult to define or to

identify except in the most obvious instances. Moreover, many aspects of emotion seem

unconscious to us. Even simple emotional states appear to be much more complicated than

states as hunger and thirst.

To clarify the concept of emotions, three definitions of various aspects of emotions can be

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distinguished:

 Emotion is a feeling that is private and subjective. Humans can report an extraordinary

range of states, which they can feel or experience. Some reports are accompanied by

obvious signs of enjoyment or distress, but often these reports have no overt indicators.

In many cases, the emotions we note in ourselves seem to be blends of different states.

 Emotion is a state of psychological arousal an expression or display of distinctive

somatic and autonomic responses. This emphasis suggests that emotional states can be

defined by particular constellations of bodily responses. Specifically, these responses

involve autonomously innervated visceral organs, like the heart or stomach. This second

aspect of emotion allows us to examine emotions in both animals and human beings.

 Emotions are actions commonly "deemed", such as defending or attacking in response

to a threat. This aspect of emotion is especially relevant to Darwin's point of view of the

functional roles of emotion. He said that emotions had an important survival role

because they generated actions to dangerous situations

20. Basic Emotions

How many emotions are there? There are dozens, including anger, contempt, enthusiasm,

envy, fear, frustration, disappointment, embarrassment, disgust, happiness, hate, hope,

jealousy, joy, love, pride, surprise, and sadness. Numerous researchers have tried to limit

them to a fundamental set. But some argue that it makes no sense to think in terms of

―basic‖ emotions because even emotions we rarely experience, such as shock, can have a

powerful effect on us. Other researchers, even philosophers, say there are universal

emotions common to all. René Descartes, often called the founder of modern philosophy,

identified six ―simple and primitive passions‖— wonder, love, hatred, desire, joy, and

sadness—and argued that ―all the others are composed of some of these six or are species of

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them.‖ Although other philosophers like Hume, Hobbes, and Spinoza identified categories

of emotions, proof of the existence of a basic set of emotions still waits for contemporary

researchers.

Psychologists have tried to identify basic emotions by studying facial expressions. One

problem is that some emotions are too complex to be easily represented on our faces. Many

think of love as the most universal of all emotions, for example, yet it‘s not easy to express

it through only a facial expression. Cultures also have norms that govern emotional

expression, so the way we experience an emotion isn‘t always the same as the way we show

it. People in the United States and the Middle East recognize a smile as indicating

happiness, but in the Middle East a smile is also more likely to be seen as a sign of sexual

attraction, so women have learned not to smile at men. In collectivist countries people are

more likely to believe another‘s emotional displays have something to do with the

relationship between them, while people in individualistic cultures don‘t think others‘

emotional expressions are directed at them. French retail clerks, in contrast, are infamous for

being surly toward customers (as a report from the French government itself confirmed).

Serious German shoppers have reportedly been turned off by Walmart‘s friendly greeters

and helpful staff. And many companies today offer anger- management

programs to teach people to contain or even hide their inner feelings. It‘s unlikely

psychologists or philosophers will ever completely agree on a set of basic emotions, or even

on whether there is such a thing. Still, many researchers agree on six essentially universal

emotions—anger, fear, sadness, happiness, disgust, and surprise. Some even plot them

along a continuum: happiness— surprise—fear—sadness—anger—disgust. The closer two

emotions are to each other on this continuum, the more likely people will confuse them. We

sometimes mistake happiness for surprise, but rarely do we confuse happiness and disgust.

In addition, as we‘ll see later on, cultural factors can also influence interpretations.

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21. Emotional Intelligence.

Emotional Intelligence is a term that Daniel Goleman coined to describe a bundle of

psychological attributes that many strong and effective leaders exhibit. Emotional

intelligence (EQ) is the ability to identify, use, understand, and manage emotions in positive

ways to relieve stress, communicate effectively, empathize with others, overcome

challenges, and defuse conflict. Emotional intelligence impacts many different aspects of

our daily life, such as the way we behave and the way we interact with others.

If we have high emotional intelligence we are able to recognize our own emotional state and

the emotional states of others, and engage with people in a way that draws them to us. We

can use this understanding of emotions to relate better to other people, form healthier

relationships, achieve greater success at work, and lead a more fulfilling life.

I.

Self- Awareness: The ability to understand one‘s own moods, emotions and drives, as well as
their effect on others.

II. Self- Regulation: The ability to control or redirect disruptive impulses or moods,

that is, to think before acting.

III. Motivation: A passion for work that goes beyond money or status and a propensity

to pursue goals with energy and persistence.

IV. Empathy: The ability to understand the feelings and viewpoints of subordinates and

to take those into account when making decisions.

V.

Social Skills: It is friendliness with a purpose.

21.1 Why is Emotional intelligence so important?

As we know, it‘s not the smartest people that are the most successful or the most fulfilled in

life. We probably know people who are academically brilliant and yet are socially inept and

unsuccessful at work or in their personal relationships. Intellectual intelligence (IQ) isn‘t

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enough on its own to be successful in life. Yes, our IQ can help us to get into college, but

it‘s our EQ that will help us to manage the stress and emotions when facing our final exams.

Emotional intelligence affects:

Our performance at work. Emotional intelligence can help us to navigate the social

complexities of the workplace, lead and motivate others, and excel in your career. In fact,

when it comes to gauging job candidates, many companies now view emotional intelligence

as being as important as technical ability and require EQ testing before hiring.

Our physical health. If we are unable to manage our stress levels, it can lead to serious

health problems. Uncontrolled stress can raise blood pressure, suppress the immune system,

increase the risk of heart attack and stroke, contribute to infertility, and speed up the aging

process. The first step to improving emotional intelligence is to learn how to relieve stress.

Our mental health. Uncontrolled stress can also impact our mental health, making us

vulnerable to anxiety and depression. If we are unable to understand and manage our

emotions, we will also be open to mood swings, while an inability to form strong

relationships can leave us feeling lonely and isolated.

Our relationships. By understanding our emotions and how to control them, we are better

able to express how we feel and understand how others are feeling. This allows us to

communicate more effectively and forge stronger relationships, both at work and in our

personal life.

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Unit 4
MOTIVATION
What is Motivation?

It is a process of stimulating people to action to accomplish desired goals.

It is the set of forces that cause people to behave in certain ways.

Motivation is the work that manager performs to inspire, encourage &

implied people to take required action.

Characteristics:

Motivation is an internal feeling

Motivation produces goal-directed behaviour

Motivation can be either positive or negative

Motivation means bargaining

Nature of Motivation

Motivation is a psychological concept

Motivation is a continuous process

Motivation is dynamic and situational

Motivation is a goal-oriented process

Motivation is influenced by social & cultural norms

Entire individual is motivation

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Goal lead to motivation

Importance of Motivation

Sets in Motion the Action of People

Improves the Efficiency of Work Performance

Ensures Achievement of Organizational Goals

Creates Friendly and Supportive Relationship

Leads to Stability in the Workforce

Helps in Acceptance of Organizational Changes

SETS IN MOTION THE ACTION OF PEOPLE

In every organization there are physical, Financial and human resources.

The utilization of physical and financial resources depends on the ability and
willingness of people to work.

Motivation puts human resources

IMPROVES THE EFFICIENCY OF WORK PERFORMANCE

 Motivation influences the level of performance of employees which

depends not only on individual’s abilities but also on his willingness to
achieve a high level of performance

 Motivation bridges the gap between the ability to work and

willingness to work

ENSURES ACHIEVEMENT OF ORGANIZATIONAL GOALS

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 Management can achieve the goals effectively by motivating

subordinates to con tribute their best efforts towards the fulfilment of
the assigned tasks.

 People are not motivated, no purpose can be served planning,

organizing and staffing function.

CREATES FRIENDLY AND SUPPORTIVE RELATIONSHIPS

 Motivation brings about employee satisfaction through monetary

rewards, recognition of efficient work and promotional opportunities

LEADS TO STABILITY IN THE WORK FORCE

 Motivation creates confidence in the subordinates and secures

their loyalty to the organization.

Helps in acceptance of organizational changes

 Organizations are created in the society because of

changes in the society changes in technology, value system etc.

Money as motivator
Money plays an important role in motivation

Management generally makes use of financial incentives like wages and

salaries , bonus , retirement benefits,

Health Insurance, medical reimbursement etc. to motivation the workers

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however ,such incentives may not always prove to be motivating .

Process of Motivation
1) Motive : Motivation starts in a motive prompts people to action.
Motives are the primary energizer of behavior and explain the reason
of behavior. Motivation are largely subjective and represent the
mental picture of the individual by explaining the rationale of human
behavior.

2) Behavior : The behavior of the individual comprises a series of

activities that the person does by being motivated to achieve
individual and organizational goals. The individuals motives are
directed towards goals and very often create a state of disequilibrium.
These stages of disequilibrium may arise due to the imbalances
between the physiological and physiological states of the individual

3) Goal : The goals chosen by an individual depends on various factors

like the cultural norms and values, the individuals inherited
capabilities , influence of personal learning and experiences, and the
type and level of mobility in the physical and social world of the
employee.

4) Tension Reduction : Every individual in the organization tends to

develop certain motivational drives as a product of his cultural
environment in which he lives and his goal driving behavior. This also
affects the way the individuals view their jobs and approach their
personal and professional life.

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Types of Motivation
1. Positive versus Negative Motivation

i. Positive Motivation : It seeks to create an optimistic atmosphere

in the enterprise. Positive motivation involves identifying
employee potentialities and makes him realize the possible
result by achieving his potentialities.

ii. Negative Motivation : One can get the desired work done by
installing fear in the minds of people. In this method of
motivation, fear of consequences of doing something or not
doing something keeps the worker in the desired direction.

2. Rational verses Emotional Motivation

i. Rational Motivation : Traditionally the term rationality is

associated with persons who carefully weigh the pros and cons
of all the alternatives and then choose the one that gives them
the greatest utility. In the marketing context we can say that
consumers who are ‘rational’ will select the goals after
ascertaining various objective criteria such as size, weight, price
etc.

ii. Emotional Motivation : As against this emotional motive are

those goals ,which are selected on the basis of emotion’s
involvement. Usually such goals are selected purely on personal
or subjective criteria such as desire for recognition of status,
fear, pride, esteem, love etc.

3. Primary Motivation verses Secondary Motivation

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i. Primary Motivation : Primary motivation also known as

biological motivation, as a definite physiological basis and is
biologically necessary for survival of the individual or species.

ii. Secondary Motivation : Secondary motivation is learned

motivation and is sometimes known as physiologically
motivation. These are not physiologically based. These are the
causes of the development of a personality .Secondary motives
originate during our life time .They are acquired and learned
through our interaction with people. They are classified two
types which are social motives and physiological motives.

4. Intrinsic Motivation verses Extrinsic Motivation

i. Intrinsic Motivation : It refers to motivation that comes from

inside of an individual rather than from any external or outside
rewards, search as money or grades. People may work at a job
because it gives them feelings of competence and a sense of
personal control, doing the job is fun, the work is a matter of
pride, the tasks are challenging, and so on.

ii. Extrinsic Motivation : It refers to motivation that comes from

outside an individual. The motivating factor are external, or
outside, rewards such as money or grades. These rewards
provide satisfaction and pleasure that the task may not provide.
It drives the performance of a activity to gain a specific
externally offered or required outcome.

5. Financial versus Non-Financial Motivation

i. Financial Motivation : These are monetary in nature as they

involve flow of money from the organization to its staff. Example
pecuniary benefits are wages, salaries, bonus etc.

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ii. Non-Financial Motivation : It do not involve much financial

commitments on the part of the organization. They do not add
to the money income of those who receive them. They take the
form of job enrichment , participative management , praise,
opportunity

THEORIES OF MOTIVATION

1. Needs Theory
2. Two Factor Theory
3. Theory X and Y

Maslow’s Hierarchy of Needs Theory

 Abraham Maslow (1943) Provided the content perspective with a
Hierachy of Needs Theory which postulates the people are motivated
by multiple needs, which exist in a hierarchical order.

 His theory of human motivation is based on the following

assumptions:

I. Unsatisfied needs motivate or influence behavior.

II. Satisfied needs do not motivate behavior.

III. Needs arranged in a hierarchy.

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IV. Needs at any level of the hierarchy emerge as a significant

motivator only when the lower level needs are reasonably well
satisfied.

Basic Physiological Needs

 The needs that are taken as starting point for motivation theory are
the so called Physiological Needs.

 These Needs are most Basic Physical Needs of human Beings such as
food, water, Clothing, Shelter and other Physical requirements.

 Physiological needs Dominate when they are unsatisfied and no other

needs serve as a base for Motivation.

Safety and Security Needs

 Safety and Security Needs include Needs for Security and Protection
from Physical and Emotional Harm.

 They include needs for a safety and secure environment in the

workplace, i.e.

Job-Security, Job-Safety, Protection from ill-Health

and economic Disaster.

SOCIAL NEEDS

 These are also known as “Belongingness Needs”.

 Man is a Social being, therefore, interested in Conversation,

sociability, exchange of feelings and grievances, companionship,
recognition, belongingness, etc.

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 Non-satisfaction of this level of needs may affect the mental health of

the individual.

ESTEEM NEEDS

 These are also known as “Ego-satisfaction Needs”.

 These needs represents person’s needs for initial factors, such as,
Status, Power, Recognition and Attention, Prestige, Self-
Confidence.

 Satisfaction of these needs leads to feelings of self-confidence and

prestige.

Self-Actualization Needs

 Maslow defines these needs as the ‘Desire to become more and more
what one is, to become everything one is capable of becoming’.

 This means individual will realize fully the potentialities of his or her
Talents and Capabilities.

 These needs include the needs for Self-fulfillment and Competency.

 At work, this translates into needs for Personal Growth, and Self-
respect.

Herzberg’s Two Factor Theory

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 Frederick Irving Herzberg(1959) in the late fifties developed a

motivation theory known as Motivation Hygiene Theory or Two
Factor Theory of motivation.

 For this purpose, he conducted a study and interviewed some 200

engineers and accountants and asked them to think of a time when
they felt good and bad at their jobs and then describe condition which
led to such feelings.

HYGIENE FACTORS

 Hygiene factors are those factors which when adequate/reasonable in

a job, pacify the employees and do not make them dis-satisfiers.

 Hygiene factors are also called as Dis-satisfiers or maintenance factors

as they are required to avoid dis-satisfaction.

 Hygiene factors include:

 Pay: The pay or salary structure should be appropriate and

reasonable. It must be equal and competitive to those in the
same industry n the same domain.

 Company Policy and Administrative Policies: The company

policies should not be too rigid. They should be fair and clear. It
should include flexible Working hours, Dress code, Breaks,
Vacations etc

 Fringe Benefits: The employees should be offered healthcare

plans (med claim), benefits for the family members, employee
help programs etc.

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 Physical Working Conditions: The working conditions should be

safe, clean and hygienic. The work equipment should be
updated and well-maintained.

 Status: The employees status within the organization should be

familiar and retained.

 Interpersonal Relations: The relationship of the employees with

his peers, superiors and subordinates should be appropriate and
acceptable. There should be no conflict or humiliation element
present.

 Job Security: The Organization must provide job security to the

employees

Motivational Factors

 According to Herzberg, the hygiene factors cannot be regarded as

motivators. The motivational factors yield positive satisfaction.

 These factors motivate the employees for a superior performance.

 These factors are called satisfiers. Employees find these factors

intrinsically rewarding.

 Motivational factors include:

 Recognition: The employees should be praised and recognized

for their accomplishments by the mangers

 Sense of Achievement: The employees must have a sense of

achievement. This depends on the job. There must be a fruit of
some sort in the job.

 Growth and Promotional Opportunities: There must be growth

and advancement opportunities in an organization to motivate
the employees to perform well.

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 Responsibility: The employees must hold themselves

responsible for the work. The manger should give them
ownership of the work. They should minimize control but retain
accountability.

 Meaningfulness of the Work: The work itself should be

meaningful, interesting and challenging for the employee to
perform and to get motivated.

LEADERSHIP
Introduction.

The ability to influence people towards the accomplishment of

organizational goal.

Definition:

Koontz and O’Donnell – It is the ability of a manager to induce subordinates

to work with zeal and confidence.

Important points:

 Existence of followers.

 Influence.

 Uneven power sharing.

 Common goals.

 Situational

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Leadership Traits
 Ralph Stogdill, surveyed more than 5000

leadership studies & concluded that successful leaders tend to have the
following qualities.

1. A strong desire for accomplishment.

2. Creativity & intelligent used to solve problems

3. Ability to influence others

4. Honesty

5. Competent

LEADERSHIP STYLES
 The behavior exhibited by a leader during the supervision of
subordinates is known as leadership style.
 Three styles of leadership:
 Directive
 Participative and
 Laissez faire

1. DIRECTIVE, AUTOCRATIC OR AUTHORITARIAN STYLE

An Autocratic leader is one who takes all decisions himself without
consulting the subordinates.

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 Close supervision and control

 Discipline through rewards /punishment
 Total dependence of subordinates on superior
 One- way communication

2. PARTICIPATIVE OR DEMOCRATIC STYLE

 The participative leader encourages his subordinates to
participate in the decision-making and goal setting.
 Attitudes, feelings, suggestions of members considered while
making decisions
 Freedom of thinking and action available to a reasonable
extent.
 Two way, open communication between members.
 Opportunity to use one’s potential in the service of
organization exists.
3. LAISSSEZ-FAIRE OR FREE-REIN LEADERSHIP STYLE
 Group members set goals and decide things on their own.
 Leader does not decide, does not control or exercise influence
over the group.
 Leader abdicates responsibility.
 Members operate in an unrestricted environment.
 Communication is open and can take any direction.

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TRANSACTIONAL VS TRANSFORMATIONAL LEADERS

 According to James burns there are two types of leaders;
transformational and transactional leaders…
1. Transformational leaders are those who recognize, exploit and
satisfy the needs of followers while elevating them into high levels
of motivation and morality.
 Charismatic behaviour.
 Individualized consideration.
 Intellectual stimulation.

2. Transactional leadership. The leader exercises influence during

daily leader- subordinate exchanges without any special emotional
inputs or considerations.

Likert’ s System 4 Management

◘ Dr.Rensis Likert has developed four models of management.
◘ His models are based on the human behaviour.

System 1 : EXPLOITATIVE - AUTOCRATIC

 Decides things unilaterally.

 One way communication.

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 Style is marked by unfriendly relation, distrust and ill-will.

 Carrots for achievers and stick for those who fail to achieve
the goals.

System 2. BENEVOLENT AUTOCRATIC

 Paternalistic approach.
 Goal setting is centralized.
 Carrot and stick policy is followed here also.
 One way communication.
 Relations are marked by fear, suspicion and distrust.

System 3: CONSULTATIVE

 Gives due weightage and importance to the human factor.

 Two way communication. Manager’s trust subordinates.

System 4: DEMOCRATIC

 Communication is open and transparent.

 Greater emphasis is put on self-appraisal and self-control.

 High degree of decentralization of authority

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THE MANAGERIAL GRID

1. Country Club Leadership - High People/Low Production. This style of

leader is most concerned about the needs and feelings of members of
his/her team.

2. Produce or Perish Leadership - High Production/Low People Also

known as Authoritarian or Compliance Leaders, people in this category
believe that employees are simply a means to an end.

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3. Impoverished Leadership - Low Production/ Low People. This leader is

mostly ineffective

4. Middle-of-the-Road Leadership - Medium

Production/Medium People. This style seems

to be a balance of the two competing concerns.

5. Team Leadership - High

Production/High People. needs.

 According to the Blake Mouton model, this is the pinnacle of

managerial style.

These leaders stress production needs and the needs of the people
equally highly.

MODULE 7GROUP BEHAVIOUR

Definition of Group

A group is defined as two or more individuals, interacting &

interdependent, who have come together to achieve particular
objectives.

More than two employees who have an ongoing relationship in which they
interact & influence one another’s behavior & performance.

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When individuals are in groups, they act differently than they do when they
are alone.

Types of groups

Groups can be either Formal or Informal.

1. Formal groups: A designated work group defined by the organization’s

structure. The behavior that one should engage in are stipulated by &
directed toward organizational goals.
Ex: Six members making up an airline flight crew.
Formal groups may be command groups or task group.

Command group:
It is determined by the organization chart.
It is composed of the individuals who report directly to a given manager.
Task group:
These are organizationally determined.
Represent those working together to complete a job task.
A task group’s boundaries are not limited to its immediate hierarchical
supervisor.
It can cross command relationships.
These may be temporary or open ended.

2. Informal group: Are alliances that are neither formally structured nor
organizationally determined. These groups are natural formations in
the work environment that appears in response to the need for
social contact.
Informal groups may be Interest groups & Friendship groups.

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Interest group:
Those working together to attain a specific objective with which each is
concerned.
Ex: Seeking improved working condition.
Friendship group:
Those brought together because they share one or more common
characteristics.
Social alliances, which frequently extend outside the work situation, can be
based on similar age, same political view, attended the same college etc.

Security- Reduce the insecurity of ‘standing alone’.

Status- Provides recognition & status.
Self-esteem- Provide people with feeling of self-worth.
Affiliation- Groups can fulfill social needs.
Power- There is power in numbers.
Goal achievement- Need to pool talents, knowledge, or power in order to
complete a job.

Comparing work groups & work teams

Work group: A group that interacts primarily to share information & to

make decisions to help each group member perform within his or her area
of responsibility.
Work team: A group whose individual efforts result in a performance that is
greater than the sum of the individual inputs.

Types of Teams

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Problem-solving teams
Self-managed teams
Cross-functional teams
Virtual teams

Stages of group development

Also called Five-Stage model.
Forming
Storming
Norming
Performing
Adjourning

Forming: Characterized by great deal of uncertainty about the group’s

purpose, structure & leadership. Members are “testing the water”. This
stage is complete when members have begun to think of themselves as part
of a group.
Storming: It is one of intragroup conflict. Members accept the existence of
group but, there is resistance to the constraints. There is conflict over who
will control the group. This stage is complete when there is clear hierarchy
of leadership.

Norming: Close relationships develop & the group demonstrates

cohesiveness. There is a strong sense of group identity. This stage is
complete when the group structure solidifies & the group has assimilated a
common set of expectations about behavior.

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Performing: The structure at this point is fully functional & accepted. Group
energy has moved from getting to know & understand each other to
performing the task at hand.

Adjourning: The group prepares for its disbandment. High task performance
is no longer the group’s priority. Attention is directed towards wrapping up
activities. Response of group members vary in this stage.

Obstacles of group productivity

Breakdown in group development: Role ambiguity, Role conflict, Role

overload.
Groupthink: Phenomenon in which the norm for consensus overrides the
realistic appraisal of alternative courses of action.
Social loafing: The tendency for individuals to expend less effort when
working collectively than when working individually.
Production blocking: Limiting other person’s output by getting in his or her
way.

CONFLICTS
Meaning & Definition
Organizations have people with different interests, perceptions,
personalities, attitudes, values and views. This leads to difference of
opinion in the organization. Disagreement is the basis of conflicts in the
organization.
Conflict can be defined as an expressed struggle between atleast two
interdependent parties who perceive incompatible goals, scarce
resources and interference from the other party in acheiving goals.

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Nature of Conflict
Conflict occurs when two or more parties have incomputable interests or
goals
Conflict arises mainly because of different perceptions of individuals

Conflict is a deliberate behaviour

Conflict differs from competition

Types of Conflicts
Relationship conflict: This is often caused by the presence of strong
negative emotions, miscommunication, misperception, repetitive
negative behaviour etc. These aspects create relationship problems
leading to disputes and end up in destructive conflict. Relationship
conflict can be managed by expressing safe and balanced emotions.

Information conflict: This occurs when people are not supplied with
necessary information to take decisions. This also occurs, when
information is interpreted differently or when irrelevant information is
supplied to take decisions.
Information conflict will be genuine incapabilities associated with the
collection, intrepretation or communication of information

Interest conflict: This occurs when the needs of one are ignored over the
needs of others. It is expressed in positional terms. If you feel that your
needs are to be satisfied at the cost of sacrificing the needs of other
person, it results in conflict of interest.
Substantive issues concerning money, physical resources, time etc and
procedural issues are the ones that contribute to the occurence of
conflict of interest

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Value conflict: People coming from different cultural or religious

background have different values (good, bad, right, wrong etc) Values
refer to beliefs that people use to give meaning to their lives.
Conflicts arises when one person tries to enforce his own values on another,
or lay claim to exclusive value systems that do not allow for divergent
beliefs

Personality conflict: Clashing personalities can create conflict anywhere.

Perceptions and emotions play a large role in whether or not, you like
or dislike someone's personality.

Process of Conflict
Conflict process can be understood in four stages – Potential opposition,
Cognition & personalization, behaviour, and outcomes.
Stage 1: Potential opposition or Incompatibility:

The first step in the conflict process is the presence of conditions that create
opportunities for conflict to arise. They need not lead directly to
conflict, but one of these conditions is necessary if conflict is to surface.

The potential for conflict increases when either too little or too much
communication takes place. Apparently, an increase in communication
is functional up to a point, whereupon it is possible to
overcommunicate,with a resultant increase in the potential for conflict.
Research indicates that size and specialization act as forces to stimulate
conflict.

Evidence indicates that certain personality types—for example, individuals

who are highly authoritarian and dogmatic—lead to potential conflict.
Emotions can also cause conflict.

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Stage 2 – Cognition & Personalization:

If the conditions cited in stage I negatively affect something that one party
cares about, then the potential for opposition or incompatibility
becomes actualized in the second stage.

As our definition of conflict notes, perception is required. One or more of

the parties must be aware of the existence of the antecedent
conditions. However, because a conflict is perceived does not make it
personalized, when individuals become emotionally involved, that
parties experience anxiety, tension,frustration, or hostility.

Stage 3 – Intentions
Intentions intervene among people’s perceptions and emotions and overt
behaviors.These intentions are decisions to act in a given way.Intentions
are separated out as a distinct stage because you have to infer
theother’s intent to know how to respond to that other’s behavior. A lot
of conflicts areescalated merely by one party attributing the wrong
intentions to the other party.

Stage 4 : Behaviour
When most people think of conflict situations, they tend to focus on stage IV
because this is where conflicts become visible. The behavior stage
includes the statements, actions, and reactions made by the conflicting
parties. These conflict behaviors are usually overt attempts to
implement each party’s intentions, but they have a stimulus quality that
is separate from intentions. As a result of miscalculations or unskilled
enactments, overt behaviors sometimes deviate from original
intentions.

Stage 5 – Outcomes
Conflict is constructive when it:

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■ improves the quality of decisions,

■ stimulates creativity and innovation,

■ encourages interest and curiosity among group members,

■ provides the medium through which problems can be aired and tensions
released, and

■ fosters an environment of self-evaluation and change.

Conflict Resolution

There are 5 basic ways of resoluting conflict:

Competing

Collaborating

Compromising

Avoiding

Accomodating

Competing method: It involves handling conflict through unilateral decision

making. This is most appropraitely used by managers and leaders in the
workplace.

The competing method is primarily used for :

Situations that involve quick action

Instances where there is no compromise or debate

Making hard or unpopular decisions

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Organizational Behaviour

Collaborating: This involves handling the conflict through team input. This
means handling conflict is particularly useful if all parties in the conflict
want to find a resolution, but are unable to agree on what resolution
should be.

It is primarily used for:

Gaining support from the team

Using different perspectives as an oppurtunity to learn

Improving relationships through collaboration

Compromising: It involves handling conflict by reaching a solution that

involves win-win situation for both parties.

This method is primarily used for :

Resolvin issues which are important

Finding a solution that involves equal power and strong commitment on

both sides

Situations where a temporary fix is not possible

Avoiding: It is a method of handling conflict by making an active decision not

to handle conflict.

This is primarily used for :

Un-important or non-work related issues

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Organizational Behaviour

Buying time until a resolution can be reached

Recognising issues as symptoms

Accomodating: This method is where the other party is allowed to win.

It is primarily used for:

Maintaining perspective in a conflict resolution

Making active decisions on unimportant issues

Keeping peace and goodwill

Accomodating: This method is where the other party is allowed to win.

It is primarily used for:

Maintaining perspective in a conflict resolution

Making active decisions on unimportant issues

Keeping peace and goodwill

Power and polities

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Organizational Behaviour

The ethics of behaving politically

Differentiate between ethical and unethical political behavior.

Ask yourself use morality.

Avoid selfishness.
Political activity should conforms the standard and equity.
Avoid favourism.
Keep in mind immoral people can justify any behavior.
Recognize if you have the power to corrupt, its lots easier the powerless to
act ethically.
Avoid self-serving bias.
Analyze the risk of politicking

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