MODULE 02

PROGRAM: MBA SEMESTER: I

ORGANIZATIONAL BEHAVIOR
COURSE NAME
COURSE CODE: 1T4 COURSE TYPE: CORE
COURSE: CORPORATE NAME OF THE FACULTY:DR. DHANASHREE
SOCIAL KATEKHAYE
RESPONSIBILITY
CO2: Students will be able to identify the components of Individual
Behaviour and apply the concept of Learning, Perception,
Attitudes and values.

Module 2: Organisational Behaviour: Introduction, Foundations of individual Behavior-Ability,

Attitudes, Job Satisfaction, Personality, Values, Perception

Books:
Organisational Behavior – Stephen Robbins; Timothy Judge, Seema Sanghi; Pearson Prentice Hall
Publication, 13th Edition, ISBN 978-81-317-2121-6, Chapter 2,3,4&5

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

1.ORGANISATIONAL BEHAVIOUR

1.1 Introduction

The study of Organizational Behavior (OB) is very interesting and challenging too. It is
related to individuals, group of people working together in teams. The study becomes more
challenging when situational factors interact. The study of organizational behavior relates to
the expected behavior of an individual in the organization.

No two individuals are likely to behave in the same manner in a particular work situation. It
is the predictability of a manager about the expected behavior of an individual. There are no
absolutes in human behavior. It is the human factor that is contributory to the productivity
hence the study of human behavior is important. Great importance therefore must be attached
to the study.

Researchers, management practitioners, psychologists, and social scientists must understand

the very credentials of an individual, his background, social framework, educational update,
impact of social groups and other situational factors on behavior.

Managers under whom an individual is working should be able to explain, predict, evaluate
and modify human behavior that will largely depend upon knowledge, skill and experience of
the manager in handling large group of people in diverse situations. Preemptive actions need
to be taken for human behavior forecasting.

The value system, emotional intelligence, organizational culture, job design and the work
environment are important causal agents in determining human behavior. Cause and effect
relationship plays an important role in how an individual is likely to behave in a particular
situation and its impact on productivity.

An appropriate organizational culture can modify individual behavior. Recent trends exist in
laying greater stress on organizational development and imbibing a favorable organizational
culture in each individual. It also involves fostering a team spirit and motivation so that the
organizational objectives are achieved.

There is a need for commitment on the part of the management that should be continuous and
incremental in nature.

1.2 Definitions:
“Organisational behaviour is a subset of management activities concerned with
understanding, predicting and influencing individual behaviour in organisational setting.”—
Callahan, Fleenor and Kudson.

“Organisational behaviour is a branch of the Social Sciences that seeks to build theories that
can be applied” to predicting, understanding and controlling behaviour in work
organisations.”—Raman J. Aldag.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

“Organisational behaviour is the study and application of knowledge about how people act
within an organisation. It is a human tool for human benefit. It applies broadly to the
behaviour of people in all types of organisation.”— Newstrom and Davis.
“Organisational behaviour is directly concerned with the understanding, production and
control of human behaviour in organisations.”—Fred Luthans.

“Organisational behaviour is a field of study that investigates the impact that individuals,
groups and structure have on behaviour within the organisations for the purpose of applying
such knowledge toward improving an organization’s effectiveness.”—Stephens P. Robbins.

Scope of Organisational Behaviour

Proper understanding of organizational behaviour can result in many positive effects on the
organization and its employees. It also studies how people behave in and around the
workplace. However, when we talk about the scope of organizational behaviour, it extends to
only three significant concepts.

1.3 The three concepts are given below.

1. Individual Behaviour
2. Inter-Individual Behaviour
3. Group Behaviour

1. Individual Behaviour
As the name itself suggests, an individual is studied from the personality, motivation,
interests, and attitudes of an organization. Various interaction sessions and one-to-one are
conducted to understand and study the individual and make a perception about them.

2. Inter-Individual Behaviour
Now, the inter-individual concept is when communication happens among the employees.
Inter-individuals represent persons with their social group, subordinates, or senior employees
in the workplace. It helps understand leadership styles and qualities and helps resolve
conflicts quickly if any arise in the group dynamics.

Here the study of the formation of an organization is done. The areas looked into can be the
structure of the organization, effectiveness in the organization, etc. The efforts made by a
group to achieve the objectives or goals of an organization are what group behaviour is all
about. The behaviour of everyone who is a part of the group is considered.

1.4 Characteristics of Organisational Behavior:

From The Above Definitions, The Following Features of Organisational Behaviour Emerge:

1. Behavioural Approach to Management:

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

Organisational behaviour is that part of whole management which represents the behavioural
approach to management. Organisational behaviour has emerged as a distinct field of study
because of the importance of human behaviour in organisations.

2. Cause and Effect Relationship:

Human behaviour is generally taken in terms of cause and effect relationship and not in
philosophical terms. It helps in predicting the behaviour of individuals. It provides
generalizations that managers can use to anticipate the effect of certain activities on human
behaviour.

3. Organisational Behaviour is a Branch of Social Sciences:

Organisational behaviour is heavily influenced by several other social sciences viz.

psychology, sociology and anthropology. It draws a rich array of research from these
disciplines.

4. Three Levels of Analysis:

Organisational behaviour encompasses the study of three levels of analysis namely individual
behaviour, inter-individual behaviour and the behaviour of organisations themselves. The
field of organisational behaviour embraces all these levels as being complementary to each
other.

5. A Science as well as an Art:

Organisational behaviour is a science as well as an art. The systematic knowledge about

human behaviour is a science and the application of behavioural knowledge and skills is an
art. Organisational behaviour is not an exact science because it cannot exactly predict the
behaviour of people in organisations. At best a manager can generalize to a limited extent and
in many cases, he has to act on the basis of partial information.

6. A Body of Theory, Research and Application:

Organisational behaviour consists of a body of theory, research and application which helps
in understanding the human behaviour in organisation. All these techniques help the
managers to solve human problems in organisations.

7. Beneficial to both Organisation and Individuals:

Organisational behaviour creates an atmosphere whereby both organisation and individuals

are benefitted by each other. A reasonable climate is created so that employees may get much
needed satisfaction and the organisation may attain its objectives.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

8. Rational Thinking:

Organisational behaviour provides a rational thinking about people and their behaviour. The
major objective of organisational behaviour is to explain and predict human behaviour in
organisations, so that result yielding situations can be created.

1.5 Nature of Organisational Behavior:

Organisational behaviour in the study of human behaviour in the organisations. Whenever an

individual joins an organisation he brings with him unique set of personal characteristics,
experiences from other organisations and a personal background. At the first stage
organisational behaviour must look at the unique perspective that each individual brings to
the work setting.

The second stage of organisational behaviour is to study the dynamics of how the incoming
individuals interact with the broader organisation. No individual can work in isolation. He
comes into contact with other individuals and the organisation in a variety of ways. The
individual who joins a new organisation has to come into contact with the co-workers,
managers, formal policies and procedures of the organisation etc.

1.6 Objectives of Organisational Behaviour

Studying organizational behaviour can help assess how the employees process these changes
and inculcate them into their work patterns. In addition, there are particular objectives that
organizational behaviour fulfils or needs to be fulfilled in the workplace.

Given below are the primary objectives of organizational behaviour.

1. Improving Employee Behaviour

2. Enhances Leadership Skills
3. Increases the Motivation of Employees
4. Assists in Organisational Change
5. Creating a Desirable Workplace Culture

1. Improving Employee Behaviour

With the help of organizational behaviour, it is easy to understand employees' behaviour and
access their workplace situation. It also helps in analyzing how employees' positive and
negative behaviour while working can impact the workflow. And through all these necessary
steps can be taken to handle any situation that may arise.

For example, we can analyze why a particular employee's deadlines are not being met by
observing their organizational behaviour.

2. Enhances Leadership Skills

To become an effective leader, it is necessary to understand organizational behaviour. When
one is in a higher position, it is essential to look into the factors that affect employees' or

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

subordinates' behaviour in the workplace. Once the reasons are understood, effective steps
can be taken immediately. Leadership skills ensure to handle the employees work effectively
and efficiently.

3. Increases the Motivation of Employees

When they look through the employees' perspective, they will always find it motivating that
their problems are being understood and reasons for their behaviour, in a certain way, are
taken into consideration. When effective feedback is taken, the employees feel valued and
satisfied. It motivates them to work in a better way, which will, in turn, increase productivity.

4. Assists in Organisational Change

When working in an organization, the employees have to undergo several changes like
technological changes, customer tastes, etc. And any difficulty that arises can be solved
without having any significant effect on the working by looking into it prior.

5. Creating a Desirable Workplace Culture

By taking steps to understand organizational behaviour, desirable workplace culture is
created. The employees feel satisfied and vital. It helps understand what leadership style must
be used, hiring strategies, compensation, etc.

6. Nature of Organisational Behaviour

Organizational behaviour considers all the variables that affect an organization's functioning.
It has been developed to understand the behaviour of humans in a socio-psychological
framework. It is essential to understand the nature of anything to apply it to our daily lives.

Given below is the nature of organizational behaviour.

7. Separate Study
Organizational behaviour is a separate field of study instead of a discipline. It means that it is
not based on a specific theoretical background. However, it is often misunderstood to be a
discipline.

8. Interdisciplinary Approach
Organizational behaviour is an interdisciplinary behaviour for studying human behaviour in
the work environment. Psychology and sociology disciplines help integrate the relevant
knowledge while understanding and analyzing organizational behaviour.

9. Applied Science
Observational behaviour has an applied nature. There is a lot of research done to resolve any
conflict in an organization related to human behaviour. The difference that we can find
between pure science and observational science is that science focuses on fundamental
research, whereas organizational behaviour has a focus on applied research.

10. Normative Science.

We can say that organizational behaviour is a normative science. Therefore, there is a focus
on how applied research can be used for socially accepted organization goals.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 11. Humanistic Approach
A humanistic approach is involved as it is a necessity while studying and understanding
behaviour. It deals with the fact as to understanding the emotions and feelings of human
beings.

1.7 Levels of Organizational Behavior

Organizational behavior is concerned with the study of human behavior in organizations, the
relation between people and organization, how they influence each other, and developing
productive relations between them to realize desired goals. Organizational behavior studies
human behavior in the organization on three main levels.

The three levels are individual level, group or team level, and organizational level. At all
these levels OB analyses the behavior of people on how, why, and what causes their behavior
in organizational settings.

Let’s understand OB’s levels of analysis separately.

1.Individual Level
This is the first level of OB analysis. At the individual level, organizational behavior studies
the behavior of an individual person such as his/her attitudes, motivation, perception,
personality, values, ethics, satisfaction, and other personal traits.

The concept of psychology plays important role in the individual-level analysis. The
individuals working in the organization are the very existence of the organization. Each
individual’s behavior is different from others, as it is natural, and some are affected by social,
cultural, and other social variables.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

A manager using his psychology, knowledge, and experience should carefully study the
individual traits and characteristics of his individual employees. Understanding these
attributes helps managers to come up with ideas to develop better and more positive
approaches to organizational systems.

2.Group Level
The organization also consists of different groups and teams. The group-level analysis of OB
studies the behavior of people at the group level, how groups work, why they interact in
group work, collaboration, group decisions, etc.

A group is a people who come together to reach some common goals. They can be small or
large and formal or informal. In a group people work together, one’s actions affect others,
they are dependent on each other, and the goal is achieved through collective effort.

Sociology, social psychology, and anthropology play an important role in studying at this
level. In addition, here OB analyses group dynamics, organizational conflicts, politics,
communication, etc.

By understanding the behavior of group-level managers can develop ideas on how to

effectively handle groups in the organization and lead them.

3. Organizational Level
At this last level organizational behavior analyses how the organization works. It mainly
studies how people interact with organizational structure, how the organization with them,
and how the external environment forces interact with the organization.

Its major variables such as work environment, organizational structure, culture, change,
politics, and environment within and outside of the organization. In fact, it is the study of
how to manage individuals, groups, or teams effectively in the organization. Sociology,
anthropology, and political science are the major disciplines contributing to this level.

The study organizational level helps managers to understand the performance of individuals
and groups and how they are contributing to the organization. By getting this, a manager can
develop suitable plans, policies, motivation programs, design jobs, manage change, etc. in
order to run the organization smoothly.

1.8 Basic Assumptions of Organizational Behavior (OB)

Every field of social science has a philosophical foundation of basic concepts that guides its
development. Organizational behavior is based on the basic concept of human relations
which is a noteworthy social approach towards the establishment of inter-personal
relationship between superiors and subordinates. Organizational behavior deals with a set of
fundamental concepts revolving around the nature of the people and organization. These

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

concepts of organizational behavior are as follows:
 Employee background check Blog List Types Actions
 Activiti Aspiration Bases Being Served Beings

Basic Assumptions of Organizational Behavior

Every discipline has a philosophical foundation of some basic assumptions or fundamental

concepts that guide its development. Those concepts and assumptions support the discipline
to flourish and develop. The basic assumptions of organizational behavior are as follows:

A. The Nature of People

1. Individual differences
Every individual has different physical characteristics, priorities, perception and the way of
expression. Each one possesses unique talents, intelligence, personality, and so on. From the
very beginning of life, each person is unique and individual experiences after birth makes
people even more different. Managers need to consider these differences because they affect
the job behaviors of employees. Therefore, every person should be selected, trained, and
treated on the basis of the kind of person he is.

2. whole person :
A person should be accepted as a whole person. That means when an employee comes to the
workplace as a complete person, he/she has his/her background, sentiments, emotions,
feelings, etc. which cannot be separated from the skills they are using on the job. Hence, OB
assumes that a person a whole person and focuses on developing him/her in terms of growth
and fulfillment.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

3. Caused behaviour :
Human beings do not exhibit behavior randomly; rather the behavior is caused by some
motive, need, want or any drive. Always employee behavior is directed towards the goal and
it can be caused by some motives, belief systems, perception, understanding, education,
experience, and environment. Managers need to motivate employees and determine what
managerial actions satisfy human needs what actions threaten their need fulfillment.

4. Value of the person(Human dignity) :

Human dignity appeals for fair treatment to people. This concept tells that people should be
treated differently as compared to other resources in the organization. It calls for self-respect
and the value of people. People should be properly treated and given the value and
recognition for their valued contribution. Managers must recognize and exercise the value
system.

B. The Nature of Organization

1. Social Systems :
The organization is a social system that is established by human association and governed by
psychological laws or rules. Like in the social system, interrelation, interaction, and
interdependency between people continue till an organization exists. People are involved in
organizations to fulfill their psychological needs; they perform some definite roles and
possess status.

People’s behavior is influenced by their own needs as well as organizational goals. The idea
of a social system provides a framework for analyzing organizational behavior issues. It helps
to make organizational behavior problems understandable and manageable.

2. Mutual interests :
The organization needs people and people also need organization. People need organization
as a means to achieve their goals and organizations need people to achieve organizational
goals. There is a clear give-and-take relationship between people and organizations.

1.9 Organizational Behavior Model

Meaning of Organizational Behavior Model: – Organizational behavior model is a basic
structure that shows the relations between employees at different levels in the organization.
Organizational behavior model reflects the behavior of the people and management all
together, it is considered as field study not just a discipline. Organization analyze behavior of
employees into three basic levels known as OB Model, they are: – Individual level, Group
level and Organizational system level.

Organizational behavior revolves around three main theoretical approaches: – cognitive,

behaviorist and social learning frameworks. These frameworks became the basis on which
the organizational behavior model operates. The cognitive theory was developed by Edward
and depends on the expectancy and incentive concepts, while the behaviorist framework

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

created by Ivan Pavlov and John B.Watson relies on observation power. While the social
theory depends on how the connection is created between the stimulus and response.

Organizational Behavior Model

In management, the focus is on the study of the five organizational behavior models: –

1. Autocratic Model;
2. Custodial Model;
3. Supportive Model;
4. Collegial Model; and
5. System Model
Let us take each of the organizational behavior models and discuss.

1.Autocratic Model: –
The autocratic model is the model that relies on strength, power and formal authority. The
autocratic model depends on power. Managers see authority as the only means to get the
things done and employees are expected to follow orders. So it results in the higher
dependence on the boss.

In an autocratic organization, the people (management/owners) managing the functions in an

organization have formal authority to control the employees working under them. These
lower-level employees have little control over the job assignments. His ideas and innovations
are generally not welcomed, as major decisions are made at the top management level.

The guiding principle behind this model is that management/owners have extensive business
expertise, and the average employee has a relatively low level of skill and needs to be
thoroughly directed. This type of autocratic management system was common in factories
during the Industrial Revolution era.

One of the more significant problems associated with the autocratic model is that the
management team needs to micro-manage the employees – where they have to look at all the
details and make every single decision. Clearly, in a more modern-day organization, where
highly paid specialists are hired, an autocratic system becomes impractical and highly
inefficient.

The autocratic model also opposes job satisfaction and employee morale. This is because
employees do not feel valued and part of the overall team. This leads to low level of
performance. While the Autocratic model may be suitable for some very automated factory
situations, it is out of date for most modern outfits.

2. Custodial Model: –
Workers being managed under the autocratic model often feel insecure and disappointed.
They may also show aggression towards their boss and their family and neighbours. So
progressive managers felt that something must happen ways to develop better employee

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

relations so that insecurities and frustrationscould be removed. The custodial approach
induces employees now to show their dependency and loyalty towards the company and not
to the boss or managers, or supervisors. The employees in this environment are more
psychologically contended and preoccupied with their rewards, but it is not necessary they
would be strongly motivated to give the performance.

To overcome the shortcomings of autocratic model, it came into existence. This model is
reward based. More emphasis is on economic rewards and benefits to motivate employees.

The custodial model is based on the concept of providing economic security for employees –
through pay and other benefits that will create employee loyalty and motivation. In some
countries, many professional companies offer health benefits, corporate cars, financial
packaging of salaries, etc. – these are incentives designed to attract and retain quality
employees.

The underlying principle for the organization is that they will have a more skilled workforce,
more motivated employees, and have a competitive advantage through employee knowledge
and expertise. The downside with the custodial model is that it also attracts and retains low-
performing employees. Or perhaps even some offer low-level motivation from employees
who feel they are “stuck” in an organization because the benefits are too good to leave.

3.Supportive Model: –
The basic idea behind this theory is that leadership drives people to work not the power of
money as in the custodial model. Through leadership Management provides an environment
to help employees develop and fulfil the interests of the organization, rather than the only
things to support employee benefit payment as per custodial approach.

It works in the public sector organization which is dependent on effective leadership. Here, it
is assumed that workers are self directed and creative. Importance in this model is given to
psychological needs, self esteem, job satisfaction and friendly relations between superior-
subordinate.

Under the supportive model, workers feel a sense of participation and work participation in
the organization. The role of the manager is to help the employee and solve their problems
and get their work done. This model has been found to be effective in prosperous countries
where workers are more concerned about their higher levels need affiliation and esteem.

Unlike the earlier two approaches, the supportive model is centred around ambitious
leadership. It is not based on control and authority (autocratic model) or incentives (custodial
model), but instead tries to motivate employees through the manager-employee relationship
and how employees are treated on a day-to-day basis.

Quite the opposite of the autocratic model, this approach suggests that employees are self-
motivated and have the value and insight to contribute to the organization, beyond just their
day-to-day role.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

This model aims to motivate employees through a positive workplace where their ideas are
encouraged and often adapted. Therefore, employees have some form of “buy-in” for the
organization and its direction.

The supportive model is widely accepted chiefly in the developed nations where the needs of
the employees are different as it fulfills many of the employees emerging needs. This
approach is less successful in the developing nations where the social and economic need of
the working class is different. In short, in the supportive model, money is not which retain
the satisfaction of the employees, but it is a part of the organization’s life that has been put to
the use and makes other people feel wanted.

4. Collegial Model: –
A useful extension of the supportive model is the collegial model. This word collegial means
a body of individuals with a common purpose. The collegial model, which embodies a term
concept, first achieved widespread applications in research laboratories and similar work
environments. This is a best model based on the partnership between workers and
management in which both work together as a team and respect each other. Workers are
satisfied by their job and they are committed to the organisation.

The collegial model traditionally was used theory is based on the principle of mutual
contribution by employer and employees. Each employee should develop a feeling that he is
a part of the whole and contributing something to the whole and recognizes the others
contribution. Management is supported to be joint contribution and not the boss.

The collegial model is based on teamwork – everyone working as a peer. The overall
environment and corporate culture needs to be aligned with this model, where everyone is
actively participating – not just about position and job title – for everyone to work together to
make a better organization is encouraged.

The role of the manager is to foster this teamwork and create positive and energetic
workplaces. In much more respect, the manager can be considered the “coach” of the team.
And as a coach, the goal is to keep the team doing well overall, rather than focusing on their
own performance, or the performances of key individuals.

The collegial model is quite effective in organizations that need to find new approaches –
marketing teams, research and development, technology/software – virtually anywhere the
competitive landscape is constantly changing and ideas and innovation are key competitive
success factors.

The success of the collegial model depends on the management’s ability to foster the feeling
of partnership between the employees. This makes the employees feel important and needed.
They also feel that managers are not just mere supervisors but are also giving their equal
contribution to the team. To make the collegial model success many organizations have
abolished the use of bosses and subordinates during working, as these terms create the
distance between the managers and subordinates. While some of the organizations have
abolished the system of allotting reserved space for executives. Now any employee can park

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

their vehicle in the common parking space, which increases their convenience and makes
them more comfortable.

5.System Model: –
The final organizational model is known as the system model. It is the most contemporary
model of the five models discussed in this article. In the system model, the organization looks
at the overall structure and team environment, and assumes that individuals have different
goals, talents, and abilities. The system model aims to try to balance the goals of the
individual with the goals of the organisation.

Individuals obviously want good remuneration, job security, but also want to work in a
positive work environment where the organization adds value to the community and/or its
customers. The model system should be a holistic partnership of managers and employees
with a common goal, and where everyone feels they have a stake in the organization.

In the system model, the expectations of the managers are much more than getting the work
done by the employees. The managers have to show their emotional side, be more
compassionate and caring towards their team, and they must be sensitive towards the needs of
the diverse workforce. They have to devote their attention to creating the feeling of optimism,
hope, trustworthiness, courage, self-determination, and through this, they try to develop a
positive work culture where the employees feel more at ease and work as if they are working
for their family. This ultimately results in the long time commitment and loyalty of the
employees and the success of the company.

1.10 Characteristics of Organizational Behavior Model (OB)

Characteristics of Organizational Behavior Model are: –

Separate Field of Study and not a Discipline Only: – Organizational behaivor model is based
on multi-interdisciplinary orientation and is, thus, it is not based on a specific theoretical
background.
An Interdisciplinary Approach: – Organizational behavior model is an applied behavioral
science built on contributions from a number of behavioral disciplines, mainly psychology
and social psychology, sociology, and anthropology.
Applied Science: – Organizational behaivor model can be called both science as well as art
because it involve both applied research and its application in organizational analysis.
Normative Science: – Organizational behaivor model describes how the findings of applied
research can be applied to socially accepted organizational goals whereas the positive science
discusses the only cause-effect relationship
Humanistic and Optimistic Approach: – Organizational behaivor model deals with the people
and their interaction with organisations.
Total System Approach: – System approach is one that integrates all the variables, affecting
organizational functioning.
Comparison of Organizational Behavior Models
The following table (Davis, 1967) presents a comparison between the four models of
organizational behaviour with respect to its basis, the key managerial psychological
consequences for orientation, key employee orientation, employee needs that are met, and

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

ultimate performance or result.

1.11Challenges and Opportunities of Organizational Behavior

Organizational behavior is the culture of the organization, which includes how employees
interact with each other. This also includes how employees feel about the company. The
challenges and opportunities of organizational behavior in most companies include
overcoming cultural and ethnic differences, improving productivity, hiring employees suited
to the organizational culture or who can improve it, delegating tasks to employees, and
finding an appropriate level of life balance. Challenges and opportunities for organizational
behavior are massive and rapidly changing for improving productivity and meeting business
goals.

Organizational behavior is the analysis of human dynamics within an organization. It helps

HR professionals and business leaders to understand the relationship between them and their
employees. In addition, it tells a lot about the interaction between employees at the same
level. Although organizational behavior varies from one organization to another, its nature
has important implications.
In the present times, managers have to deal with various contemporary challenges and
opportunities to use organizational behavior concepts and improve productivity. Some of the
challenges and opportunities for organizational behavior are listed below.
Challenges and Opportunities of Organizational Behavior
The challenges and opportunities of Organizational Behavior can be fully
understood with the help of the following points : –
1. Improving People’s Skills: – Technological changes, structural
changes, environmental changes occur at a rapid pace in the business
sector. Unless employees and executives are equipped to have the

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 necessary skills to adapt to those changes, targeted goals may not be
achieved in a timely manner. These are two different categories of skills
– managerial skills and technical skills. Some of the managerial skills
include listening skills, motivational skills, planning and organizing
skills, leading skills, problem solving skills, decision making skills. These
skills can be enhanced by conducting a range of training and
development programmes, career development programmes, induction
and socialisation.
2. Improving Quality and Productivity: – Quality is the extent to which
customers or users believe that the product or service exceeds their
needs and expectations. For example, a customer who buys an
automobile has a certain expectation, one of which is that the
automobile will start when the engine is started. If the engine does not
start, the customer’s expectations will not be met and the customer will
find the quality of the car to be poor. The major dimensions of quality
are as follows: –
o Performance: -Primary rating characteristics of a product such as
signal coverage, audio quality, display quality, etc.
o Features: – Secondary features, additional features, such as
calculator, and alarm clock features in the handphone
o Conformity: – meeting specifications or industry standards, the
degree of workmanship to which the product’s design or operating
characteristics match pre-established standards
o Reliability: – The probability of a product falling out within a specified
period
o Durability: – It is a measure of the life of a product having both
economic and technical dimensions.
o Services: – Problem and complaints resolution, Ease of repair
o Feedback: – Human-to-human interfaces, such as Courtesy of Dealer
« Aesthetics: Sensory features such as exterior finishes.
o Reputations: – Past performance and other abstractions, such as
being in the first place.
More and more managers are facing challenges to meet the specific
needs of customers. To improve quality and productivity, they are
implementing programs like total quality management and reengineering
programs that require extensive employee participation.

3. Total Quality Management (TQM): – Total Quality

Management (TQM) is a philosophy of management driven by
continuous achievement of customer satisfaction through continuous
improvement of all organizational processes. The components of TQM
are: –
o an intense focus on the customer,
o concern for continuous improvement,
o improving the quality of what the organization does,

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 o accurate measurement and,
o Empowerment of employees.
4. Managing Workforce Diversity: – It refers to employing different
categories of employees who are heterogeneous in terms of gender,
caste, ethnicity, affiliation, community, physically disadvantaged,
elderly people etc. The primary reason for employing a heterogeneous
range of employees is to harness talent and potential, harness
innovation, to achieve synergistic effects among the divorced
workforce. In general, employees wanted to maintain their personal and
cultural identity, values, and lifestyle, even if they were working in the
same organization with similar rules and regulations. The biggest
challenge for organizations is to become more accommodating to
different groups of people by addressing their different lifestyles, family
needs and work styles.
5. Responding to Globalization: – Today’s business is mostly market-
driven; wherever the demands exist irrespective of distance, locations,
climatic conditions, the business operations are expanded to gain their
market share and to remain in the top rank, etc. Business operations
are no longer restricted to a particular locality or region. The company’s
products or services are spreading across the nations by using mass
communication, internet, fast transportation etc. More than 95% of
Nokia handsets are sold outside their home country of Finland,
Japanese cars are being sold in different parts of the world, Sri Lankan
tea is exported to many cities across the world, Garment products from
Bangladesh are exported to USA and EU countries. Executives of
multinational corporations are very dynamic and move more frequently
from one subsidiary to another.
6. Empowering People: – The main issue is to delegate more power and
responsibility to the lower-level cadre of employees and to provide
more freedom to make choices regarding their schedules, operations,
procedures and method of solving problems related to their work.
Encouraging employees to participate in work-related decisions will
significantly increase their commitment to work. Empowerment is
defined as putting employees in charge of the work they do by gaining
some kind of ownership. Managers are going far ahead by allowing
employees complete control over their work. The movement implies
constant change, with an increasing number of organizations using self-
managed teams, where workers largely work without bosses.
7. Coping with Temporariness: In recent times, product life cycles are
shortening, operating methods are improving, and fashion is changing
very rapidly. In those days, managers were required to undertake major
transformation programs once or twice a decade. Today, change is an
ongoing activity for most managers. The concept of continuous
improvement refers to continuous change. In the old years, there used
to be a long period of stability and sometimes interrupted by a short
period of change, but at present, the change process is an ongoing

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 activity due to competition in developing new products and services
with better features. Everyone in the organization today is facing
permanent impermanence. The actual work to be done by the workers
is in a permanent state of flow. Hence, workers need to constantly
update their knowledge and skills to meet the requirements of the new
job.
8. Stimulating Innovation and Change: – Today’s successful
organizations must foster innovation and master the art of change;
Otherwise, they will become candidates for extinction over time and
disappear from their field of business. Wins will go to organizations that
maintain flexibility, continually improve their quality, and beat the
competition with a constant stream of innovative products and services
in the market place. For example, Compaq was successful in making
more powerful personal computers than EBNM or Apple for the same or
less money, and in getting their products to market faster than larger
competitors.
9. The Emergence of E-Organisation & E-Commerce: – It refers to
business operations involving electronic mode of transaction. This
includes presenting products on websites and filling orders. Most of the
articles and media attention given to using the Internet in business has
focused on online shopping. The process involves marketing and selling
of goods and services on the Internet. In e-commerce, the following
activities are happening quite frequently – with a tremendous number
of people shopping on the internet, business houses setting up websites
where they can sell goods, following transactions such as receiving
payments and fulfilling orders.
10. Improving Ethical Behavior: – Complexity in business operations
is forcing the workforce to face ethical dilemmas where they need to
define right and wrong conduct to carry out their assigned activities.
For example, should employees of a chemical company blow the
whistle if they uncover that its untreated waste in the river is polluting
its water resources? Do managers give an inflated performance
appraisal to an employee of their choice, knowing that such an
appraisal could save that employee’s job? The basic rules governing the
components of good ethical behavior are not clearly defined, separating
right things from bad behavior becoming more blurred. It has become a
common practice to follow unethical practices such as successful
executives who use insider information for personal financial gain,
employees in competing businesses participating in mass cover-ups of
defective products, etc.
11. Improving Customer Service: – OBs can contribute to improving
organizational performance by showing how employee attitudes and
behaviors are correlated with customer satisfaction. In that case, the
service must first be production-oriented, using technological
opportunities such as computers, internet, etc. We also need to provide

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 sales service and also after-sales service in order to improve customer
service.
12. Helping Employees Balance Work-Life Conflicts: – In the 1960s
or 1970s, normal workers showed up at the workplace from Monday to
Friday and worked 8 or 9 hours a day. Workplaces and hours were
specified. This is no longer true for a large part of today’s workforce.
Employees are increasingly complaining that the line between work and
non-work time has become blurred, leading to personal conflict and
tension.

1.12 Factors Influencing Individual Behaviour

Every individual is different from each other, as the behavior of the human is considered as
the most complex one. There are various challenges in an effective organization that could
directly or indirectly affect the behavior of the employees. In certain situations, the manager
of the organization have to first analyze the particular task, determine the skills required and
gather a team that could complement and match the skills of each other. For addressing
various factors, safety settings, capabilities of people and limitations have to be analyzed
first. There are various factors that could affect the organizational behavior of an individual,
some of them are:

A. Personal factors – The personal factors that can influence the behavior of an individual is
further categorized into 2 parts that includes Biographic and learned characteristics.

1. Biographic Characteristics – Every human being have certain type of characteristics

which are inherited and genetic in nature. These characteristics cannot get changed. In an
organization, if the manger will come to know about the limitations and qualities each
personal possess, then they can easily make use of their behavior techniques of an
organization in an effective manner. These characteristics include:

(i) Physical Characteristics – It mainly consists of skin, vision, height, complexion and
many more. It creates impact on the performance of the individuals. Also, certain features
includes tall, fat or slim. A person with good personality is always expected to dress and
behave well in an organization, even if there is any correlation between the behavior and
body structure or not.

1. Age– It is the inherited characteristic of an individual. In increasing performance, it is

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

considered as an issue. Young people are expected to behave more energetic, adventurous,
innovative, risk taking and ambitious. With the advancement in age, performance of a person
is more likely to decline.

2. Gender – It is a genetical feature. This concept has initiated lots of discussion, debates and
opinions. It is a traditional view that women are more emotional. A small difference between
men and women can affect their job performance. Without any male-female differences,
some of the people have competitive drive, leadership, motivation, learning ability, analytical
skills or problem solving ability. A study have been conducted which says that the female
employees generate more turnover rates. This is because there are more chances of females to
quit their job for their personal reasons.

difference between men and women can affect their job performance3. Religion– In
determining some of the aspects of individual behavior, religion and its related cultures plays
a significant role especially that have the basic concern with ethics, morals and code of
conduct. It also helps in identifying the attitude of an individual towards their work and
financial management incentives. But nobody can deny from the fact that people who are
highly religious have more moral values than others.

4. Marital Status – A recent research says that the responsibilities of the person inclined with
their marital status and it has become difficult to s6table in a particular job for the longer
period of time. Employees that are married have fewer absences, more job satisfaction and
fewer turnovers.

5. Experience – The tenure or the experience of an employee plays a significant role within
the organization. It creates lot of speculations and misconceptions due to the seniority factor.
Also, work experience is considered as a good indicator that helps in increasing productivity
with greater efficiency and effectiveness. There is a positive relationship between the job
performance and the seniority. The turnover of an employee is also considered as negative in
relation to the seniority.

2. Learned Characteristics – Learning is defined as a permanent change in the behavior of

an employee that results in the interactions with the environment. The biographical features
of a person are impossible to modify. Therefore, the managers of the organization paid a
great interest in learning, studying and predicting the learned characteristics that include:

(1)Personality– Personality does not only lie with the physical appearance of the person. A
person with a good personality comprised of smart person, smiling face and charming
personality. This concept is considered as dynamic that describes the growth and
development of the psychological system of the person. It is also refereed as personal traits or
characteristics that include persistence, dominance, aggressiveness and other qualities that is
reflected through the behavior of the person within the organization.

(2)Perception– It is the viewpoint that helps in the interpretation of some situation. Also, it is
considered as the process which allows the information to enter in the minds and allowed to
obtain sensible meaning for the whole world.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

(3)Values – Values are considered as the global belief that instructs different judgments and
actions across various situations. It consists of an individual’s idea based on the right, good
and desirable opinions. It is closely embedded in the people who could be reflected through
their behavior. Also, most of time values are directly influenced from the teachers, parents,
friends and various other external factors that completely changed the ideas, opinions and
thoughts of the person. For an organizational behavior, values are very significant. It helps in
understanding the motivation and the attitude of an individual along with the influences of
their perceptions or view point.

B. Environmental Factors – On the behavior of a person, the external environment plays a

significant role.

1. Economic Factors – In an economic environment, the behavior of an individual is largely

affected due to certain factors including:

(a)Employment Level – The employment opportunities available to an individual directly

influence the behavior of an individual. Even after the lack of job satisfaction, the individual
have to stick to the same job as there are less job opportunities for him/her. In such cases, it is
important that they may be loyal to the company in providing better productivity; they are
only remaining in the same organization due to the monetary benefits offered to them.

Employment Level (b)Wage Rates – Every employee is majorly concern with the wages
offered to them by the company or the organization. The decision of a worker or an employee
is directly affected by the monetary terms from the side of the company.

(c)General Economic Environment – There are various employees that does not have any
effect of economic cycle whether in a public sector undertakings or government offices.
Regardless of their economic position within the organization, they will receive their salaries.
Employees in the private sectors are greatly affected by the stable income and job security
but the former employees can be motivated from other factors.

Similarly, there are various other environmental factors in an organization that could affect
the behavior of the employees, including social factors, political factors or legal environment.

C. Organizational Factors – With wide variety of resources and organizational systems,

individual behavior is influenced that includes:

1. Physical Facilities – At a workplace, the physical environment is considered as an

arrangement of people and things positive that could also create influence on other people.
There are certain factors that influence the behavior of an individual including cleanliness,
light, ventilation, noise level, nature of job, number of people working, etc.

(a)Structure and Design – The way in which every department of the organization is set-up
has direct concern with the structure and design. The performance and the behavior of an
individual is directly influenced by the position at which person could perfectly fits in the

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

whole organizational hierarchy.

(b)Leadership – The management of the organization establish the system of leadership so

that the proper assistance, advice, guidance, direction and coaching could be given to the
individuals. The behavior of each employee is influenced to the large extent to the behavior
of the leaders or the superiors of the same organization. The behavior of the leaders is more
important than the qualities of the leaders.

(c)Reward System – The performance and the behavior of individuals are directly influenced
by the reward system that is established by the organization so that the employees could be
able to compensate.

2. ABILITY

Ability is the skills and qualities which make it possible to achieve a goal. It may be stable
and enduring characteristics that are genetic and can be either completely perceptual or
completely motor or a combination.
Employees need to have certain abilities that will make them valuable addition to an
organization.
What is Ability in Organizational Behavior?
Ability is a current assessment of what one can do. From a management standpoint, the issue
is not whether people differ in terms of their abilities. They certainly do.

What is Ability in Organizational Behavior?

Ability is a current assessment of what one can do. From a management standpoint, the issue
is not whether people differ in terms of their abilities. They certainly do.

The issue is knowing how people differ in abilities and using that knowledge to increase the
likelihood that an employee will perform his or her job well.

We are acknowledging that everyone has strengths and weaknesses in terms of ability that
make him or her relatively superior or inferior to others in performing certain tasks or
activities.

2.2 Definition

According to Stephen P. Robbins, “Ability is an individual’s capacity to perform the various

tasks in a job.”

According to Keith Davis, “Ability is the quality of being able to do something, especially
the physical, mental, financial or legal power to accomplish something.”

Alyssa McGonagle, a professor of psychology at Wayne State University, said, “Workability

is not about whether people want to continue working, but whether they feel they can
continue working at their jobs.”

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

At last, we can say that ability is the quality or state of being able, the power to perform
whether physical, mental, moral, intellectual, skill in doing, the sufficiency of strength,
available resources, etc.

It underpins and contributes to skills. It can be essentially perceptual, essentially motor, or a

combination of both.

Organizations look for employees to have two types of intellectual and physical abilities
depending on the job requirements.

According to Keith Davis, “Ability is the quality of being able to do something, especially
the physical, mental, financial or legal power to accomplish something.”

Alyssa McGonagle, a professor of psychology at Wayne State University, said, “Workability

is not about whether people want to continue working, but whether they feel they can
continue working at their jobs.”

At last, we can say that ability is the quality or state of being able, the power to perform
whether physical, mental, moral, intellectual, skill in doing, the sufficiency of strength,
available resources, etc.

It underpins and contributes to skills. It can be essentially perceptual, essentially motor, or a

combination of both.

Organizations look for employees to have two types of intellectual and physical abilities
depending on the job requirements.

2.3 Types of Ability

Ability in Organizational Behavior: Types of Ability (Explained)
In Organizational Behavior, the 2 types of ability are;

1. Intellectual Ability.
2. Physical Ability.
3. Intellectual Ability

1.Intellectual Ability
Intellectual ability is the capacity to do mental activities, thinking and reasoning, and
problem-solving.

It commonly refers to the ability measured by performance on an intelligence test. It is also

sometimes used in the context of discussing the performance of someone in an academic or
real-world setting.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

The seven most frequently cited dimensions making up intellectual abilities are number
attitude, verbal comprehension, perceptual speed, inductive reasoning, deductive reasoning,
and memory.

Intellectual abilities have got seven dimensions.

Advantages such as;

 Highly reliable
 Verbal reasoning and numerical tests have shown high validity for a wide range of
jobs.
 The validity rises with the increasing complexity of the job.
 Combinations of aptitude tests have higher validities than individual tests alone.
 It may be administered in group settings where many applicants can be tested at the
same time.
 Scoring of the tests may be completed by computer scanning equipment.
 Lower cost than personality tests.

2.Physical Ability

Physical ability is the capacity to do tasks that demand stamina, desire, strength, and similar
characteristics.

It can identify individuals who are physically able to perform the essentials function of a job

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

without risking injury to others.

Research on the requirements needed in hundreds of jobs has identified nine physical abilities
involved in performing physical tasks.
These are -dynamic strength, static strength, trunk strength, explosive strength, extent
flexibility, dynamic flexibility, body – coordination, balance, and stamina.

Advantages;

 It can identify individuals who are physically unable to perform the essential
functions of a job without risking injury to themselves or others.
 It can result in decreased costs related to disability/medical claims, insurance, and
 workers compensation.
 Decreased absenteeism

Disadvantages

 Costly to administer
 Requirements must be shown to be job-related through a thorough job analysis.
 It may have an age-based disparate impact on older applicants,

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

3.ATTITUDE
An attitude is a positive, negative, or mixed evaluation of an object expressed at some level
of intensity. It is an expression of a favorable or unfavorable evaluation of a person, place,
thing, or event. These are fundamental determinants of our perceptions of and actions toward
all aspects of our social environment. Attitudes involve a complex organization of evaluative
beliefs, feelings, and tendencies toward certain actions.
How much we like or dislike something that determines our behavior towards that thing.

We tend to approach, seek out, or be associated with things we like; we avoid, shun, or reject
things we do not like.

Some examples of attitudes are- he has a positive attitude about the changes, she is friendly
and has a good attitude, he was showing some attitude during practice today, so the coach
benched him, I like my friends that means I am expressing my attitudes towards my friends,
etc.

3.1 Definition of Attitude

Attitude is the manner, disposition, feeling, and position about a person or thing, tendency, or
orientation, especially in the mind.

According to Gordon Allport, “An attitude is a mental and neural state of readiness,
organized through experience, exerting a directive or dynamic influence upon the individual’s
response to all objects and situations with which it is related.”

Frank Freeman said, “An attitude is a dispositional readiness to respond to certain

institutions, persons or objects in a consistent manner which has been learned and has
become one’s typical mode of response.”

Thurstone said, “An attitude denotes the total of man’s inclinations and feelings, prejudice or
bias, preconceived notions, ideas, fears, threats, and other any specific topic.”

Anastasi defined attitude as “A tendency to react favorably or unfavorably towards a

designated class of stimuli, such as a national or racial group, a custom or an institution.”

According to N.L. Munn, “Attitudes are learned predispositions towards aspects of our
environment. They may be positively or negatively directed towards certain people, services,

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

or institutions.”

“Attitudes are an ‘individual’s enduring favorable or unfavorable evaluations, emotional

feelings, and action tendencies toward some object or idea.” — David Krech, Richard S.
Crutchfield, and Egerton L. Ballackey.

“Attitude can be described as a learned predisposition to respond in a consistently favorable

or unfavorable manner for a given object.” — Martin Fishbein and Icek Ajzen.

“An attitude is a relatively enduring organization of beliefs around an object or situation

predisposing one to respond in some preferential manner.” — Milton Rokeach.

3.2 Characteristics of Attitude

Attitude can be described as a tendency to react positively or negatively to a person or

circumstances.
Thus the two main elements of attitude are this tendency or predisposition and the direction
of this predisposition.
It has been defined as a mental state of readiness, organized through experience, which exerts
a directive or dynamic influence on the responses.
These can also be explicit and implicit.
Explicit attitudes are those that we are consciously aware of and that clearly influence our
behaviors and beliefs. Implicit attitudes are unconscious but still affect our beliefs and
behaviors.

Psychologists Thomas, which imposes limits as a level attitude trend, is positive and
negatively, associated with psychology.
Object psychology here includes symbols, words, slogans, people, institutions, ideas, etc.

Characteristics of Attitude are;

 Attitudes are the complex combination of things we call personality, beliefs, values,
behaviors, and motivations.
 It can fall anywhere along a continuum from very favorable to very unfavorable.
 All people, irrespective of their status or intelligence, hold attitudes.
 An attitude exists in every person’s mind. It helps to define our identity, guide our
actions, and influence how we judge people.
 Although the feeling and belief components of attitude are internal to a person, we
can view a person’s attitude from their resulting behavior.
 Attitude helps us define how we see situations and define how we behave toward the
situation or object.
 It provides us with internal cognitions, beliefs, and thoughts about people and objects.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

  It can also be explicit and implicit. Explicit attitude is those that we are consciously
aware of an implicit attitude is unconscious but still affect our behaviors.
 Attitudes cause us to behave in a particular way toward an object or person.
 An attitude is a summary of a person’s experience; thus, an attitude is grounded in
direct experience and predicts future behavior more accurately.
 It includes certain aspects of the personality as interests, appreciation, and social
conduct.
 It indicates the total of a man’s inclinations and feelings.
 An attitude is a point of view, substantiated or otherwise, true or false, which one
holds towards an idea, object, or person.
 It has aspects such as direction, intensity, generality, or specificity.
 It refers to one’s readiness for doing Work.
 It may be positive or negative and may be affected by age, position, and education.
 Attitude may be defined as a feeling or disposition to favor or be against objects,
persons, and situations.

It is a well-defined object of reference. It may be defined as ‘an enduring predisposition or

readiness to react or behave in a particular manner to a given object or situation, idea,
material, or person.’
It describes and evaluates an object or a situation, with each belief having a cognitive effect
and behavioral components.

Each of these beliefs is a predisposition that results in some preferential response towards the
object or the situation.
Actually, it is frequently used in describing people and explaining their behavior.

For example:-

“I like her attitude,” “He has a good attitude,” etc. Actually, it is characterized by the
tendency to feel and behave in a particular way toward some object.

Components of Attitude
Components of Attitudes
Attitudes are simply expressions of much we like or dislike various things. Attitudes
represent our evaluations, preferences, or rejections based on the information we receive.

3 components of attitude are (1) Cognitive Component, (2) Affective Component, and
(3) Behavioral Component.

Factors Influencing Attitudes

Factors Influencing Attitude
By attitudes, we mean the beliefs, feelings, and action tendencies of individuals or individuals
towards objects, ideas, and people.

Attitudes involve some knowledge of a situation.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

However, the essential aspect of the attitude is found in the fact that some characteristic
feeling or emotion is experienced and, as we would accordingly expect, some definite
tendency to action is associated.

Subjectively, then, the important factor is the feeling or emotion.

Many different factors can influence how and why attitudes form. These are-

 Social Factors.
 Direct Instruction.
 Family.
 Prejudices.
 Personal Experience.
 Media.
 Educational and Religious Institutions.
 Physical Factors.
 Economic Status and Occupations.
 Learn more about factors influencing attitudes.

3.3 Types of Attitudes

3 Types of Attitude
Attitude is something that lies between emotions and thought processing. It may be positive
or negative.
Attitude is something that lies between emotions and thought processing. It may be positive
or negative.

In organizational behavior; 3 types of attitudes are;

Job Satisfaction,
Job Involvement and
Organizational Commitment.

3.4 Functions of Attitudes

The most important function of an attitude can only be ascertained by considering it
concerning the person who holds it and the environment in which they operate.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

Daniel Katz outlines 4 functions of attitude areas:

 Adjustment Function.
 Ego-Defensive Function.
 Value-Expressive Function.
 Knowledge Function.
 Barriers to Change Attitudes
 Barriers to Change Attitudes
Employees’ attitudes can be changed, and sometimes it is in management’s best interests to
try to do so.

For example, if employees believe that their employer does not look after their welfare, the
management should try to change employees’ attitudes and develop a more positive attitude
towards them.

However, the process of changing the attitude is not always easy.

Actually, the barriers are the limits that prevent the organization from achieving its
predetermined goals.

So every organization should be aware of these and should take corrective actions.

Barriers to Change Attitudes are;

Prior Commitment.
Insufficient Information.
Balance and Consistency.
Lack of Resources.
Improper Reward System.
Resistance to Change.
 Prior Commitment
When people feel a commitment towards a particular course of action that has already
been agreed upon, it becomes difficult for them to change or accept the new ways of
functioning.

 Insufficient Information
It also acts as a major barrier to changing attitudes. Sometimes people do not see why
they should change their attitude due to the unavailability of adequate
information.Sometimes people do not see why they should change their attitude due
to the unavailability of adequate information.

 Balance and Consistency

Another obstacle to a change of attitude is the attitude theory of balance and
consistency.Human beings prefer their attitudes about people and things to be in line
with their behaviors towards each other and objects.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

  Lack of Resources
If plans become excessively ambitious, they can sometimes be obstructed by the lack
of resources in a company or organization.So, in this case, if the organization wants to
change the employees’ attitude towards the new plan, sometimes it becomes
impossible for the lack of resources to achieve this.

 Improper Reward System

Sometimes, an improper reward system acts as a barrier to changing attitudes.Suppose
an organization emphasizes short-term performance and results too much. In that
case, managers may ignore longer-term issues as they set goals and formulate plans to
achieve higher profits in the short term.If this reward system is introduced in the
organization, employees are not motivated to change their attitude.

 Resistance to Change
Another barrier is resistance to change.Basically, change is a continuous process
within and outside the organization to achieve the set goal.When the authority
changes a plan of the organization, the employees have to change themselves.But
some of them do not like this. If their attitude regarding the change of plan cannot be
changed, the organization will not be successful.

4.PERSONALITY

4.1 Introduction
Personality can be defined as those inner psychological characteristics that both determine
and reflect how a person think and act in an environment.

The inner characteristics of personality are specific qualities, attributes, traits, factors and
mannerism that distinguish one individual from other individuals. Personalities are likely to
influence the individual’s product and store choices. They also affect the way consumer
responds to a firm’s communication efforts.
Personality is a pattern of stable states and characteristics of a person that influences his or
her behaviour toward goal achievement. Each person has unique ways of protecting these
states.

Personality is the fundamental and foremost determinant of individual behaviour. It seeks to

integrate the physiological and psychological facets of an individual to put them into action.
Personality consists of an individual’s characteristics and distinctive ways of behaviour.

Probably the most meaningful approach would be to include both the person and the role as
Floyd L Ruch does in his definition. He states that:

Human personality includes:

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

External appearance and behaviour or social stimulus value.
Inner awareness of self as a permanent organising force.
The particular pattern or organisation of measurable traits, both “inner and “outer”.

4.2.Personality Meaning
The word personality is derived from a Greek word “persona” which means “to speak
through”. Personality is the combination of characteristics or qualities that forms a person’s
unique identity.

It signifies the role which a person plays in public. Every individual has a unique, personal
and major determinant of his behavior that defines his/her personality.

Personality Definition
Personality Definition by Authors: No common definition of personality has so far been
arrived at. Every individual defines personality in a different way which includes trait factors
and physical appearance.

The dynamic organisation within the individual of those psychophysical systems that
determine his unique adjustments to his environment

Gordon Allport
Personality is a broad, amorphous designation relating to fundamental approaches of persons
to others and themselves. To most psychologists and students of behaviour, this term refers to
the study of the characteristic traits of an individual, relationships between these traits and the
way in which a person adjusts to other people and situations
J.B Kolasa
Personality is a very diverse and complex psychological concept. The word ‘personality’ may
mean something like outgoing, invigorating interpersonal abilities … but we must also
recognize and explain the fact that development results in man acquiring a distinctiveness or
uniqueness which gives him identity which enables him and us to recognize him as apart
from others. These distinguishing characteristics are summarized by the term ‘personality
James D Thompson and Donald Van Houten
Personality is how people affect others and how they understand and view themselves, as
well as their pattern of inner and outer measurable traits and the person situation interaction
Fred Luthans
as the most adequate conceptualisation of an individual’s behaviour in all its details which the
scientist can provide at a moment of time
McClelland
Personality in Organisational Behavior (OB)
Personality in Organisational Behavior of an individual plays an extremely important role in
assessing the behaviour of a person at an organization.

In case an individual who is holding a senior position in an organization has a wrong type of
personality, it may lead to a very bad impact on the relationship and ultimately it may lead to
protests and unrest at the workplace.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

Sometimes the personality difficulties are the root cause of labour strikes. No matter how
good the superior is in technical knowledge or other behavioural characteristics, it is the
‘temperament’ of the superior that is crucial in ensuring a cordial interaction with
subordinates. Many businesses have realized the importance of leadership in an organization
in shaping the personality of employees

4.3 Determinants of Personality

The determinants of personality can be grouped in five broad categories:

1. Biological Factors
2. Cultural Factors
3. Family Factors
4. Social Factors
5. Situational Factors
Determinants-of-Personality-Geektonight

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 1. Biological Factors
The study of the biological contributions to personality may be studied under three heads:

 Heredity
Heredity refers to those factors that were determined at conception. Physical stature, facial
attractiveness, sex, temperament, muscle composition and reflexes, energy level, and
biological rhythms are characteristics that are considered to be inherent from one’s parents.

The heredity approach argues that the ultimate explanation of an individual’s personality is
the molecular structure of the genes, located in the chromosomes.

 Brain
The second biological approach is to concentrate on the role that the brain plays in
personality. The psychologists are unable to prove empirically the contribution of the human
brain in influencing personality.

Preliminary results from the electrical stimulation of the brain (ESB) research give an
indication that a better understanding of human personality and behaviour might come from
the study of the brain.

 Biofeedback
Until recently, physiologists and psychologists felt that certain biological functions such as
brainwave patterns, gastric and hormonal secretions, and fluctuations in blood pressure and
skin temperature were beyond conscious control.

Now some scientists believe that these involuntary functions can be consciously controlled
through biofeedback techniques. In BFT, the individual learns the internal rhythms of a
particular body process through electronic signals that are feedback from equipment that is
wired to the body.

 Physical Features
A vital ingredient of the personality, an individual’s external appearance, is biologically
determined. The fact that a person is tall or short, fat or skinny, black or white will influence
the person’s effect on others and this in turn, will affect the self-concept.

2. Cultural Factors
Among the factors that influence personality formation is the culture in which we are raised,
early conditioning, norms prevailing within the family, friends and social groups and other
miscellaneous experiences that impact us.

The culture largely determines attitudes towards independence, aggression, competition,

cooperation and a host of other human responses.

According to Paul H Mussen, “each culture expects, and trains, its members to behave in
ways that are acceptable to the group. To a marked degree, the child’s cultural group defines
the range of experiences and situations he is likely to encounter and the values and

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

personality characteristics that will be reinforced and hence learned.”

3. Family Factors
Whereas the culture generally prescribes and limits what a person can be taught, it is the
family, and later the social group, which selects, interprets and dispenses the culture. Thus,
the family probably has the most significant impact on early personality development.

A substantial amount of empirical evidence indicates that the overall home environment
created by the parents, in addition to their direct influence, is critical to personality
development.

The parents play an especially important part in the identification process, which is important
to the person’s early development.

According to Mischel, the process can be examined from three different perspectives.

Identification can be viewed as the similarity of behaviour including feelings and attitudes
between child and model.

Identification can be looked at as the child’s motives or desires to be like the model.

It can be viewed as the process through which the child actually takes on the attributes of the
model.
From all three perspectives, the identification process is fundamental to the understanding of
personality development. The home environment also influences the personality of an
individual. Siblings (brothers and sisters) also contribute to personality.

4. Social Factors
There is increasing recognition given to the role of other relevant persons, groups and
especially organisations, which greatly influence an individual’s personality. This is
commonly called the socialization process.

Socialization involves the process by which a person acquires, from the enormously wide
range of behavioural potentialities that are open to him or her, those that are ultimately
synthesized and absorbed.

Socialization starts with the initial contact between a mother and her new infant. After
infancy, other members of the immediate family – father, brothers, sisters and close relatives
or friends, then the social group: peers, school friends and members of the work group – play
influential roles.

Socialization process is especially relevant to organisational behaviour because the process is

not confined to early childhood, taking place rather throughout one’s life. In particular, the
evidence is accumulating that socialization may be one of the best explanations for why
employees behave the way they do in today’s organisations.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 5. Situational Factors
Human personality is also influenced by situational factors. The effect of the environment is
quite strong. Knowledge, skill and language are obviously acquired and represent important
modifications of behavior.

An individual’s personality, while generally stable and consistent, does change in different
situations. The varying demands of different situations call forth different aspects of one’s
personality.

According to Milgram, “Situation exerts an important press on the individual. It exercises

constraints and may provide a push. In certain circumstances, it is not so much the kind of
person a man is, as the kind of situation in which he is placed that determines his actions”.
We should therefore not look at personality patterns in isolation.

4.4 Personality Characteristics

Managers should learn as much as possible about personality in order to understand their
employees. Hundreds of personality characteristics have been identified.

7 personality characteristics that influence individual are:

 Locus of Control
 Self-Efficacy
 Self-Esteem
 Self-Monitoring
 Positive/Negative Affect
 Risk-Taking
Type A and Type B Personality
Personality Characteristics
Personality Characteristics

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 1. Locus of Control
The degree to which individuals perceive control over a situation being internal or external is
called locus of control.

Locus of control refers to the range of beliefs that individuals hold in terms of being
controlled by self (internal locus) or controlled by others or the situation (external locus).

2.Self-Efficacy
Generalized self-efficacy refers to a belief about one’s own ability to deal with events and
challenges.

High self-efficacy results in greater confidence in one’s job-related abilities to function

effectively on the job. Success in previous situations leads to increased self-efficacy for
present and future challenges.

3.Self-Esteem
An individual’s self-worth is referred to as self-esteem. Individuals with high self-esteem
have positive feelings about themselves.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

Low self-esteem individuals are strongly affected by what others think of them, and view
themselves negatively.

3.Self-Monitoring
The extent to which people base their behavior on cues from other people and situations is
self-monitoring.
Individuals high in self-monitoring pay attention to what behavior is appropriate in certain
situations by watching others and behaving accordingly.
Low self-monitoring individuals prefer that their behavior reflects their attitudes, and are not
as flexible in adapting their behavior to situational cues.

4.Risk-Taking
People differ in their willingness to take chances. High-risk-taking managers made more
rapid decisions and used less information in making their choices than low risk-taking
managers.

Type A and Type B Personality

 Type A personality individual is aggressively involved in a chronic, struggle to

achieve more and more in less and less time, and if required to do so, against the
opposing efforts of other things or other persons.

 Type B personalities are rarely harried by the desire to obtain a wildly increasing
number of things or participate in an endless growing series of events in an ever
decreasing amount of time.

4.5 Nature of Personality

Personality is the psychological growth and development within the ambit
of change.

Hubert Bonner underlines six propositions to clarify the nature of

personality. These propositions are relevant to decision making by an administrator.
1. Totality of acts
2. Personality and Environment
3. Personality Depicts consistency
4. Personality is goal-oriented behavior
5. Time Integrating structure
6. Personality Structure

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 1. Totality of Acts
In an organisation, human behaviour is the point of culmination which is preceded by a
number of acts. It is the totality of these acts in the form of responded behaviour which is
relevant to both individual and the organisation. The isolated psychological or physiological
aspect of individual in personality is of no use for administrative decision or action.

2. Personality and Environment

Personality and environment are two interdependent variables of human behaviour.
Personality gets molded according to the environment, it is also a fact that it is the
environment which stimulates personality to action.

3. Personality Depicts consistency

Normal personality is dynamic due to the environmental setting around him. Personality can
be flexible to the point of consistency in a different environmental setting.

Personality is goal-oriented behavior

Every individual seeks to achieve the desired goal through his personality. The process of
goal selection is in itself a dynamic quality of personality which also forges unity between
personality and goal-directed behaviour.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

4.Time Integrating structure
Personality provides a synthesis of the retrospect and the prospect because the future is as
much related to past as the past is to future.

5.Personality Structure
Personality structure consists of three dimensions – determinants, stages and traits.

5.PERCEPTION

5.1 What is Perception?

Perception is defined as the process by which an individual selects, organizes and interprets
stimuli into a meaningful and coherent picture of the world.
It is a cognitive process by which people attend to incoming stimuli, organise and interpret
such stimuli into behaviour.
Stimulus is any unit of input to any of the senses; examples of stimuli (i.e. Sensory inputs)
include products, packages, brand names; advertisement and commercials. Sensory receptors
are the human organs (the eyes, ears, nose, mouth and skin) that receive sensory inputs.
These sensory functions are to see, hear, smell, taste and feel respective.
The study of perception is largely the study of what we subconsciously add to or subtract
from raw sensory inputs to produce a private picture of the world.
Sensation is the immediate and direct response of the sensory organs to simple stimuli and
advertisement, a package, a brand name. Human sensitivity refers to the experiences of
sensation.

5.2 Perception Meaning

The word Perception comes from the Latin words, “percipio” meaning “receiving, collecting,
action of taking possession, apprehension with the mind or senses”.

5.3 Perception Definition

a process by which individuals organize and interpret their sensory impressions in order to
give meaning to their environment

Stephen P. Robbins
Perception is an important meditative cognitive process through which persons make
interpretations of the stimuli’s or situation they are faced with

Fred Luthans
Perception in Organisational Behavior
Why is perception important in the study of Organisational Behavior?

Simply because people’s behavior is based on their perception of what reality is, not on
reality itself. The world as it is perceived is the world that is behaviorally important.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

For example, in appraising performance, managers use their perceptions of an employee’s
behaviour as a basis for evaluation. One work situation that highlights the importance of
perception is the selection interview. Perception is also culturally determined. Based on our
cultural backgrounds, we tend to perceive things in certain ways.

Read: What is Organizational Behavior?

5.4 Nature of perception

1. Perception is the process by which an individual gives meaning to the environment.

2. People‘s actions, emotions, thoughts and feelings are triggered by their perceptions of
their surroundings.
3. Perception has been defined in a variety of ways; it basically refers to the manner in
which a person experiences the world.
4. Perception is an almost automatic process and works in the same way within each
individual, yet it typically yields different perceptions.

5.5 Factors that Influence Perception

1. Characteristics of the Perceiver

Several characteristics of the perceiver can affect perception. When an individual looks at a
target and attempts to interpret what he or she stands for, that interpretation is heavily
influenced by personal characteristics of the individual perceiver.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

The major characteristics of the perceiver influencing perception are:

 Attitude
The attitude and aptitude of employees influence perception formation. If they have
positive attitudes towards the management, they directly perceive the stimuli given by
management. In the case of negative attitudes, the employees suspect the
management’s approach. Employees of high aptitude have a desire and attitude for
growth. They behave positively toward the management of an organization.

 Motives
The motives and desires of employees cause them to view stimuli differently as per
their level and angle. Helpful motives of the employees will always assist the
management. If they desire to develop themselves and the organization, they will
perceive objects and situations positively. Employees having low motives will not
work sincerely. The perception will differ depending on different types of motives.

 Interest

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 The interest of individuals draws more attention and recognition to stimuli. Less
attention and recognition lowers the impact of stimuli or objects on behaviour. If
employees lack interest, behaviour pattern will be less effective, and the perception
will be weak.

 Experience
The experience of employees results in different levels of perception. A young
employee takes time to understand the object and situation. Experienced employees
generally understand objects quickly and correctly. However, in contradictory
situations, it is difficult to correct aged persons, whereas the young are easily moulded
towards achieving the objectives of the organization.

 Expectation
Expectations distort perceptions. People see what they expect to see. If they see the
object and the situation differently from their expectations, they get frustrated. They
are unable to modify their behaviour. The employees may expect more pay and so
they perceive the management from that angle. The real stimuli are not properly
perceived if expectations exist there on. The management has to evolve expectations
for proper perception.

 Self-Concept
Another factor that can affect social perception is the perceivers’ selfconcept. An
individual with a positive self-concept tends to notice positive attributes in another
person. In contrast, a negative self-concept can lead a perceiver to pick out negative
traits in another person. Greater understanding of self allows us to have more accurate
perceptions of others.

2. Characteristics of the Target

Characteristics in the target that is being observed can affect what is perceived. Physical
appearance plays a big role in our perception of others. Extremely attractive or unattractive
individuals are more likely to be noticed in a group than ordinary looking individuals.

Motion, sound, size and other attributes of a target shape the way we see it.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 Physical appearance
1.Physical appearance
Physical appearance plays a big role in our perception of others. The perceiver will notice the
target’s physical features like height, weight, estimated age, race and gender. Perceivers tend
to notice physical appearance characteristics that contrast with the norm, that are intense, or
that are new or unusual.

2.Verbal communication
Verbal communication from targets also affects our perception of them. We listen to the
topics they speak about, their voice tone, and their accent and make judgements based on this
input.

3.Non-verbal communication
Non-verbal communication conveys a great deal of information about the target. The
perceiver deciphers eye contact, facial expressions, body movements, and posture all in an
attempt to form an impression of the target.

Targets are not looked at in isolation; the relationship of a target to its background influences
perception because of our tendency to group close things and similar things together.

Objects
Objects that are close to each other will tend to be perceived together rather than separately.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

As a result of physical or time proximity, we often put together objects or events that are
unrelated.

People, objects or events that are similar to each other also tend to be grouped together. The
greater the similarity, the greater the probability we will tend to perceive them as a group.

Read: What is Attitude?

3. Characteristics of the Situation

Change in situation leads to incorrect perception about a person.

The factor that influence the perception are:

 Time
 Work setting
 Social setting
 Characteristics of the Situation
 Characteristics of the Situation

 Time
The situation in which the interaction between the perceiver and the target takes place
has an influence on the perceiver’s impression of the target.For Example, a person
decked up for a party may not be noticeable but the same dress in office would be

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 noticed distinctly, though the person has not changed.

 Work setting
You would have very frequently heard people say that their manager is different
during working hours and 1800 opposite while in a social setting.

 Social setting
The strength of the situational cues also affects social perception. Some situations
provide strong cues as to appropriate behaviour. In these situations, we assume that
the individual’s behaviour can be accounted for by the situation and that it may not
reflect the individual’s disposition. This is the discounting principle in social
perception.

 For example, you may encounter an automobile salesperson who has a warm and
personable manner, asks you about your work and hobbies, and seems genuinely
interested in your taste in cars. Can you assume that this behaviour reflects the
salesperson’s personality? You probably cannot, because of the influence of the
situation. This person is trying to sell you a car, and in this particular situation, he
probably treats all customers in this manner.

5.6 Implications of Perception on Performance and Satisfaction

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

1.Productivity
What individuals perceive from their work situation will influence their productivity. More
than the situation itself than whether a job is actually interesting or challenging is not
relevant. How a manager successfully plans and organizes the work of his subordinates and
actually helps them in structuring their work is far less important than how his subordinates
perceive his efforts. Therefore, to be abl

2. Absenteeism and Turnover

Absence and Turnover are some of the reactions to the individual’s perception. Managers
must understand how each individual interprets his job. and where there is a significant
difference between what is seen and what exists and try to eliminate the distortions.

3. Job Satisfaction
Job satisfaction is a highly subjective, and feeling of the benefits that derive from the job.
Clearly his variable is critically linked to perception. Clearly his variable is critically linked
to perception. If job satisfaction is to be improved, the worker’s perception of the job

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

characteristics, supervision and the organisation as a whole must be positive.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye