GANDHI INSTITUTE OF TECHNOLOGY

AND MANAGEMENT (GITAM)

An ISO 9001 Institute

NBA Accredited

LECTURE NOTE

Name of the Subject : MPOB

Module No : 2
Name of the faculty : Rajaswini Mishra
 MODULE-II

What Is Organizational Behavior

Organizational Behavior has included two terms in it. Therefore, these two terms should be detailed first before
diving into the title in question.

→ Organization: It is a group of people who are collected to work for a common goal with collective efforts.
Organization works through two concepts i.e. coordination and delegation among its group members.
Delegation is necessary to allocate group members with equal work according to their capability, and
coordination is required to achieve organizational goal with precision.
→ Behavior: It is a verbal or physical response shown by a person as a consequence of the impact of his/her
surroundings. Individual Behavior varies in accordance with their mental reactivity to particular circumstances
because of their deeply imbibed morals and value system.
→ Organizational Behavior: Organizational Behavior is the observation of individual and/or group Behavior
in response to the other individuals or group as a whole. It studies Behavior of people or group to know their
attitude towards particular circumstances.

INTRODUCTION
All organizations, be the business,
educational or government, are social
systems. They
are run by people. The functioning of an
organization depend upon how people
work or behave
in the organization. Human behaviour in
organizations is highly unpredictable. It
is unpredictable
because it arises from people’s deep-
seated needs and value systems.
However, it can be partially
understood in terms of the framework of
behavioral science, management and
other disciplines.
There is no idealistic solution to
organizational problems. All that can be
done is to increase our
understanding and skills so that human
relations at work can be enhanced.
INTRODUCTION
All organizations, be the business,
educational or government, are social
systems. They
are run by people. The functioning of an
organization depend upon how people
work or behave
in the organization. Human behaviour in
organizations is highly unpredictable. It
is unpredictable
because it arises from people’s deep-
seated needs and value systems.
However, it can be partially
understood in terms of the framework of
behavioral science, management and
other disciplines.
There is no idealistic solution to
organizational problems. All that can be
done is to increase our
understanding and skills so that human
relations at work can be enhanced.
INTRODUCTION
All organizations, be the business,
educational or government, are social
systems. They
are run by people. The functioning of an
organization depend upon how people
work or behave
in the organization. Human behaviour in
organizations is highly unpredictable. It
is unpredictable
because it arises from people’s deep-
seated needs and value systems.
However, it can be partially
understood in terms of the framework of
behavioral science, management and
other disciplines.
There is no idealistic solution to
organizational problems. All that can be
done is to increase our
understanding and skills so that human
relations at work can be enhanced.
NATURE OF ORGANISATIONAL BEHAVIOUR
Organisational Behaviour (OB) helps firms achieve effectiveness in their activities. Organisations, as stated
earlier, comprise people and OB helps in utilising these resources for achieving organisational effectiveness.
People generally possess physical strength, skills of some kind, executive skills and organising abilities. OB
helps harness these qualities and use them for achieving organisational goals.

Definition and Meaning of OB

Definitions on OB are many. However, three features need to be emphasised in any definition:
OB is the study of human behavior
The study is about behaviour in organizations
Knowledge about human behaviour would be useful in improving an organisation’s effectiveness.
Combining the above three features, OB may be understood to be the study of human behaviour in
organisational settings, of the interface between human behaviour and the organisation and of the
organisation itself. Knowledge gained from such a study is useful in improving organisational effectiveness.
The following definitions are appropriate: OB refers to the behaviour of individuals and groups within
organisations and the interaction between organisational members and their external environments. OB is a
field of study that investigates the impact that individuals, groups and structure have on behaviour within
organisations for the purpose of applying such knowledge towards improving an organisation’s effectiveness.
To sum up, OB obviously comprises individual behaviour, group behaviour and of the organisation itself.
Understanding of the subject is complete when all the three are studied carefully. The study of individual
behaviour alone is incomplete because the actions of the employee influence and are influenced by the
organisation where he or she works. Again, studying only organisations without learning about the people
amounts to looking at only a part of the picture.

SCOPE OF ORGANISATIONAL BEHAVIOUR

Organisational behaviour, as mentioned earlier, is the study of human behaviour within organisations. The
subject encompasses the study of individual behaviour, interpersonal behaviour, and of the organisations
themselves. Intrapersonal behaviour covers such aspects as personality, attitude, perception, learning, opinion,
motivation, job satisfaction, and stress management. Interpersonal behaviour includes group dynamics, team
dynamics, intergroup conflict, leadership, communication, transaction analysis, and the like. About
organisations, the study covers such aspects as their formation, structures, effectiveness and formal and
informal organisations. These three levels of analysis are not necessarily mutually exclusive. The field of
organisational behaviour embraces them as being complementary. In the past, these three levels of analysis
were pursued with little co-ordination by behavioural scientists. Now, however, a major contribution of those
interested in OB is the attempt to integrate these three levels of analysis, although this will require much effort.
The individual focus is no more important or valuable to the manager within an organisation than is the group
or formal organisational focus. There is no need to choose one level of analysis and exclude the others.
Managers in business, health care, education, government, and religious organisations all have problems in
common that require an interdisciplinary approach. This can be provided by OB because it emphasises on all
these levels of analysis — the individual, the group, and the formal organisation.
1) People: This element is the soul of the Organization because people work to achieve the target of
Organization and Organization works to fulfill the needs of individual or group of individuals. The word
‘people’ can be anyone who is working inside the Organization, like employees or any external person like
supplier, customer, auditor, or any government official.
2) Structure: It is the body of the Organization which is to be taken care of to bring coordination between
different levels of Organization, because Organization does not work aloof and is dependent on people which
again work on the concept of division of labor. So, there is always a hierarchy in Organization which if not
properly dealt with can mess the system because of nil scrutiny and flow of control.
3) Technology: Organizations work on technologies to help people in efficiently doing their work. Same
technology does not apply to each Organization but different Organizations demand different technologies for
their different line of businesses e.g bank needs mediating technology which connects customers and bankers,
Manufacturing companies need long linked technology because of their assembly line process, and hospitals
work on intensive technology because of their responsibility to provide specialized services in terms of doctors
and medical equipments.
4) Environment: Organizations are influenced by the environment in which they work, at a substantial level.
Environment is important to Organizations because of the following factors:
# Supply and demand comes from this environment.

# Human resource, competitors, government agencies, unions, and political parties comes from environment in
which Organization is surviving.

# The Organizations have to follow rules and regulations fostered by this environment.

Importance of Organizational Behavior:

1. It builds better relationship by achieving people’s, organizational, and social objectives.
2. It covers a wide array of human resource like behavior, training and development, change management,
leadership, teams etc.
3. It brings coordination which is the essence of management.
4. It improves goodwill of the organization.
5. It helps to achieve objectives quickly.
6. It makes optimum utilization of resources.
7. It facilitates motivation.
8. It leads to higher efficiency.
9. It improves relations in the organization.
10. It is multidisciplinary, in the sense that applies different techniques, methods, and theories to evaluate the
performances.

Relationship Between Organizational Behavior & Individual

Organizational behavior refers to the way that people, either as individuals or in groups, behave within the
context of an organization. Psychological theories, meanwhile, seek to explain the reasons people behave as
they do. The intersection of organizational behavior and psychological theory provides insight into why people
act as they do in the context of work. Such insight can help leaders create environments conducive to better
performance. Specific psychological theories have different relationships with organizational behaviors.
Motivation
Motivation in employees allows them to sustain effort in a particular direction for some period of time.
Naturally, management wants motivated employees. But, motivated by what and to what end? Psychological
theory often attempts to explain motivation through evaluating people's needs. In Maslows' theory, for instance,
needs are ordered from those of basic survival to metaphysical fulfillment. The lowest unmet need, according to
theory, is the one driving an individual's behavior. Meshing the motivations of employees with a company's
needs can help leaders achieve goals.
Reciprocity
Social exchange theory refers to cooperative, reciprocal behavior that emerges when a person is the recipient of
some benefit. A relationship begins when a benefactor bestows something upon another and the recipient, in
turn, returns the favor by becoming the benefactor. As the exchange of benefits continues, the relationship
grows, built on a sense of mutual obligation and an implied contract. In terms of organizational behavior, social
exchange theories predict that those in leadership roles can garner employee backing for company agendas if
those employees are treated favorably. If an organization breaks its contract by not keeping benefits up,
employees may feel released from their contract with the employer at the cost of loyalty and effort on the
company's behalf.
Positivity
The advent of the 21st century saw the development of a new way of approaching organizational behavior.
Instead of trying to eliminate the negative, current psychological theory looks at accentuating the positive. This
new study falls under the positive psychology movement. Phrases such as "positive organizational behavior" or
"positive organizational psychology" are used when positive psychology is applied to organizational behavior.
Applied that way, it looks at the positive psychological capital of an organization -- in other words, this new
theoretical approach emphasizes what's right and figures out where it comes from so an organization can
propagate more of the same. Confidence, hope, resiliency and optimism -- these are the important positive
psychological traits that lay behind constructive activity and organizational behavior. This capital can belong to
individuals, groups, leaders and to the organization itself.
Group Belonging
Social identity theory refers to the identity a person feels as a member of a group. A sense of group belonging
can be a powerful force in an organization because people tend to favor others who are of their group as an
extension of self. This can be damaging if the social identity is, for instance, based on race or gender. On the
other hand, social identity can create a sense of camaraderie among members of a work team and give it a
competitive edge.
EVOLUTION OF OB
Five stages are distinct in the evolution of OB: Industrial Revolution, Scientific Management,
Human Relations Movement, Hawthorne Studies and OB itself. Experts of human behaviour have tried to
chronicle the growth of the subject only from the beginning of the 19th century. The early part of the 19th
century is significant because it was during this period that the Industrial Revolution took place that resulted in
the total transformation of the then industrial environment.

Industrial Revolution: Industrial Revolution brought about materialism, discipline, monotony, boredom, job
displacement, impersonality, work interdependence, and related behavioural phenomena. Nevertheless, the
Industrial Revolution was responsible for planting the seed for potential improvement. Industry created surplus
of goods and knowledge that eventually gave workers increased wages, shorter hours, and more work
satisfaction. In this new industrial environment Robert Owen, a young Welsh factory owner, about the year
1800, was one of the first to emphasise the human needs of employees. He refused to employ young
children. He taught his workers cleanliness and temperance and improved their working
conditions. Owen could demonstrate in his own factory that it paid to devote as much attention
to ‘vital machines’ as to ‘inanimate machines’. His methods entitled him to be called the ‘father
of personnel management’. This could hardly be called modern organisational behaviour, but
a beginning in that direction was, however made.

In 1835, Andrew Ure published his The Philosophy of Manufactures, in which, he included
the human factor as one of the factors of production, besides the mechanical and commercial
parts. Believing in the importance of the human factor, Ure provided workers with hot tea,
medical treatment, and sickness payments.
Nearer home, around this time J.N. Tata took a special interest in the welfare of his workers.
He installed the first humidifiers and fire sprinklers in his factories. In 1886, he instituted a
pension fund, and in 1895, began to pay accident compensation. He was decades ahead of his
time and miles ahead of his competitors. The Empress Mills experiments showed that not only
profits but people mattered to him.
The ideas of Owen, Ure and Tata were accepted slowly or not at all, and they often
deteriorated into a paternalistic, do-good-approach than a genuine recognition of the importance
of people at work.
Scientific Management: The very mention of scientific management brings Taylor to our
memory. He is appropriately called the ‘father of scientific management’ as he converted broad
generalisations into practical tools. He was also responsible for awakening interest in workers
in the 1900s. Taylor advocated the selection of right people for right jobs, training them
adequately, placing them in jobs for which they were best suited, and remunerating them
handsomely. To be sure, Taylor’s goal was technical efficiency, but at least management was
awakened to the importance of human resources, which was hitherto neglected.
Taylor published his major work Principles of Scientific Management in 1911. During that
decade, interest in human conditions at work was accelerated by World War I.
Taylor’s ideas were criticised — particularly, his belief in rationalising everything and holding
the assumption that human behaviour is based on ‘rabble hypothesis’.
But Taylor’s ideas are practised even today.
introduced during the scientific management era in their efforts to become even more efficient.
It is digital Taylorism now.
The scientists who were closely influenced by Taylor were the industrial psychologists Frank
and Lillian Gilbreth. This husband-and-wife team pioneered time-and-motion study, a type of
applied research designed to classify and streamline the individual movements needed to perform
jobs with the intent of finding “the one best way” to perform them. Although this approach
appears to be highly mechanical and dehumanising, Gilbreths had great concern for human
beings.
Scientific management was criticised by employees and theorists for its overemphasis on
task accomplishment and monetary incentives at the cost of respect for human beings. A new
approach that treated workers as human beings was desired.
The Human Relations Movement: Failure of Scientific Management gave birth to the human
relations movement which is characterised by heavy emphasis on employee co-operation and
morale. Under this, people were to be treated as human beings and not as machines, listening
to their needs and problems and involving them in decision making in matters relating to
working conditions. There are varied and complex reasons for this human relations position.
Historically, three of the most important contributing factors would be the Great Depression,
the labour movement, the results of the now famous Hawthorne Studies.
The stock exchange crash of 1929 in America marked the beginning of the Great Depression.
The consequences of the Depression were widespread unemployment, decline of purchasing
power, collapse of markets, and lowering of the standard of living of people. This phenomenon
was worldwide and not confined to America alone.
One positive outcome of the Depression was that management began to realise that
production alone could not be its major function. Marketing, finance, and personnel were also
required in order for a business to survive and grow. The Depression’s aftermath of unemployment
and insecurity bought to the surface, human problems that managers were now forced to
recognise and cope with. Personnel departments were either created or given more emphasis,
and most managers now began to develop a new, awakened view of the human aspects of
work. Human relations took an increased significance as an indirect, and in some cases, direct
result of the Depression.
Mere creation or strengthening of personnel departments did not improve the plight of
workers. Production still preceded people in order of importance in organisations. Decent
hours of work, fair wages, and adequate working conditions were sacrificed for more production.
There were people like Taylor, Ford, and Sloan who sincerely believed in giving the labour its
due share. Such noble hearted souls were few and far between. In general, exploitation of
labour continued.
Labour Movement: Continued exploitation made workers realise that their protection lay
in their own hands. They formed strong unions and this had the desired effect on management.
Management began to place primary emphasis on employee relations, and secondary attention
was given to wages, hours of work, and conditions of employment.
Unfortunately, the human relations role also often came about for wrong reasons. In too
many cases, it was forced on managers by labour, threatening them with consequences of noncompliance.
Ideally, it would have been better, had, human relations developed because of
intrinsic motivation of practising managers, to better understand and provide for the welfare of
their employees.
Hawthorne Studies: Although the Depression and the labour movement were at least,
important indirect causes of the practice of human relations, the Hawthorne studies dominate
the academic discussion on historical development. The studies gave academic status to the
study of organisational behaviour.
The studies were carried out at the Western Electric Company’s Hawthorne works in Cicero,
a suburb of Chicago, and are closely linked with the name of Elton Mayo. As Professor of
Industrial Research at the Harvard School of Business Administration, Mayo was the person,
most responsible for conducting the studies and publicising their significance. Naturally, he is
called the ‘father of human relations movement’.

Limitations of Organizational Behavior:

1. Behavioral bias: It further causes dependence, dis-contentment, indiscipline, and irresponsibility.
2. Law of diminishing returns: It says that beyond a certain point, there is a decline in output even after
each additional good or positive factor.
3. Unethical practices and manipulation of people: Knowledge of motivation and communication acquired
can be used to exploit subordinates in an Organization by the manipulative managers.
ATTITUDE:

Definition of Attitude
Attitude is the manner, disposition, feeling and position with regard to 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.”

IMPORATANCE OF ATTITUDE IN AN ORGANISATION

It may seem as if skills and experience are the most important characteristics of an employee, but attitude plays
just as big of a role. After all, what good are great professional skills without the attitude to see it all through?
There are five key attitudes that small businesses should seek out in employees to ensure a harmonious
professional environment and a productive staff.
Respect for Others
Respect in the workplace doesn't solely extend to the way employees interact with management. People who
have self-respect don't do managers' biding no matter what; they think for themselves and present alternative
ideas at times, but respectfully. Employees should also have a respectful attitude when interacting with clients
and customers as well as co-workers. Those with this type of attitude are willing to treat other people politely
and professionally, even if they disagree with the other person's point of view.
Infectious Enthusiasm About Life
Someone who is enthusiastic about life in general radiates a positive energy that rubs off on everyone around
her. She dives into every project with interest, eagerly learns new skills and ideas and quickly applies them to
her work. Some people are born with positive energy, but it can also be developed. Teach your staff to approach
every situation, positive or negative, as a challenge and an opportunity.
Adopt a "glass half full" attitude in the company and encourage employees to build on it. Soon they'll extend an
enthusiastic attitude toward co-workers, customers and everything they do.
Commitment to the Job
Small businesses need employees who are not only committed to the goals and initiatives that affect the bottom
line, but who also are committed to their particular positions. Employees project a committed attitude by
showing a willingness to do whatever it takes to fulfill the duties of their positions and via the development of
new ideas to make the company even better. When committed individuals work together as a team towards
company goals, everyone benefits.
Innovative Ideas and Finding New Ways
Employees with an innovative attitude don't shy away from trying something new or finding a different way to
do things. Small businesses need employees who can think outside of the box and innovate new ways to
accomplish existing tasks and approach goals. Employees with this type of attitude know their ideas might not
work out to be the best way to do something, but that the biggest failure is not at least giving new ideas a shot.
Helpfulness with Others
It is important to have a helpful attitude at work, whether that means assisting clients and customers with their
needs or helping co-workers accomplish overall company goals. The more helpful an attitude employees have,
the more people want to be around them at work and the more willing they are to partner with those employees
on key projects and initiatives.

RIGHT ATTITUDE
A positive attitude is essential to happiness, joy, and progress in life. This state of mind brings light, hope and enthusiasm
into the life of those who possess it.
Adopting it in your life does not mean that everything will always move smoothly and there will be no bumps on the road.
However, it ensures that any setback you might encounter will not stop you or change your state of mind, and that you will
go on, try again, and do your best despite any setback.

Individuals who have a positive attitude will pay attention to the good, rather than bad in people, situations,
events. A simple example of a positive attitude; when you are having a very bad run of luck but you still say
“Good Morning” rather than “What's so good about this morning”.

COMPONENTS ATTITUDE
Cognitive Component
The cognitive component of attitudes refers to the beliefs, thoughts, and attributes that we would associate with
an object. It is the opinion or belief segment of an attitude. It refers to that part of attitude which is related in
general knowledge of a person.
Typically these come to light in generalities or stereotypes, such as ‘all babies are cute’, ‘smoking is harmful to
health’ etc.
Affective Component
Affective component is the emotional or feeling segment of an attitude.
It is related to the statement which affects another person.
It deals with feelings or emotions that are brought to the surface about something, such as fear or hate. Using
the above example, someone might have the attitude that they love all babies because they are cute or that they
hate smoking because it is harmful to health.
Behavioral Component
Behavior component of an attitude consists of a person’s tendencies to behave’ in a particular way toward an
object. It refers to that part of attitude which reflects the intention of a person in the short-run or long run.
Using the above example, the behavioral attitude maybe- ‘I cannot wait to kiss the baby’, or ‘we better keep
those smokers out of the library, etc.

RELATIONSHIP BETWEEN BEHAVIOUR AND ATTITUDE

While attitude involves mind's predisposition to certain ideas, values, people, systems,
institutions; behaviour relates to the actual expression of feelings, action or inaction orally or/and through body
language. I am sure, others will look at these somewhat differently
In psychology, an attitude refers to a set of emotions, beliefs, and behaviors toward a particular object, person,
thing, or event. Attitudes are often the result of experience or upbringing, and they can have a
powerful influence over behavior. While attitudes are enduring, they can also change.
A work attitude behavior is the evaluations of one's job that constitute one's feelings toward, beliefs about, and attachment
to one's job. Overall work attitude attitude can be conceptualized in two ways. Either as effective job satisfaction that
constitutes a general or global subjective feeling about a job, or as a composite of objective cognitive assessments of
specific job facets, such as pay, conditions, opportunities and other aspects of a particular job. Employees evaluate their
advancement opportunities by observing their job, their occupation, and their employer. While ;

Work behavior attitude often depends on how we feel about being there. Therefore, making sense of how people behave
depends on understanding their work attitudes. An attitude refers to our opinions, beliefs, and feelings about aspects of our
environment
 DEVELOPING EMOTIONAL INTELLIGENCE AT WORKPLACE
Taking this a step further, we can assemble some ideas of how these three components can impact the workplace.
The challenge in the workplace is that now these components are tied to work functions, policy, procedures and
organizational structure, as well as the people and individuals present in the organization.
For example, we could have thoughts or beliefs (cognitive) about managers in general, and those thoughts or beliefs could
manifest themselves is not trusting a manager (effective), and thus we would never want to develop a close relationship
with a manager (behavioral).
It is important to make the point here that these are attitudes – and yes, they can be wrong. Just because we have an attitude
that does not mean it is correct. It is just how we feel about a person or situation.
Obviously not every manager is trustworthy, but if we let our negative attitudes dictate how we view and react to
managers, we will never be able to see if some are really good people and can be trusted.
Certainly having a good relationship based on trust with the manager is a great thing to have in the workplace.

Barriers to Change Attitudes

Employees’ attitudes can be changed and sometimes it is in the best interests of management 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’ attitude and help to develop a more positive attitude towards them.
However, the process of changing the attitude is not always easy.
Actually, the barriers are the limits which 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 and
thus it becomes difficult for them to change or accept the new ways of functioning.
Insufficient Information
It also acts as a major barrier to change attitudes. Sometimes people do not see a reason why they should change
their attitude due to unavailability of adequate information.
Sometimes people do not see a reason why they should change their attitude due to unavailability of adequate
information.
Balance and Consistency
Another obstacle to a change of attitude is the attitude theory of balance and consistency.
That is human beings prefer their attitudes about people and things to be in line with their behaviors towards
each other and objects.
Lack of Resources
If plans become excessively ambitious, they can sometimes be obstructed by the lack of resources on the part of
a company or organization.
So, in this case, if the organization wants to change the attitude of the employees 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 change attitude.
If an organization places too much emphasis on short-term performance and results, 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, then the 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.

PERSONALITY &VALUE

Definition and importance of personality for performance-

Personality is nothing but the aggregate conglomeration of memories and incidents in an individual’s entire life
span. Environmental factors, family background, financial conditions, genetic factors, situations and
circumstances also contribute to an individual’s personality.
Personality also influences what we think, our beliefs, values and expectations. What we think about others depends on our
personality.
In a layman’s language personality is defined as the personal qualities and characteristics of an individual. Personality is
how we interact with others. Personality is a sum of characteristics of an individual which makes him different from the
others. It is our personality which makes us unique and helps us stand apart from the crowd.
Determinants of Personality
Following are the factors which help in shaping one’s personality:

1. Heredity - Heredity refers to factors that are determined once an individual is born. An individual’s
physique, attractiveness, body type, complexion, body weight depend on his/her parents biological
makeup.
2. Environment - The environment to which an individual is subjected to during his growing years plays
an important role in determining his/her personality. The varied cultures in which we are brought up
and our family backgrounds have a crucial role in shaping our personalities.
3. Situation - An individual’s personality also changes with current circumstances and situations. An
individual would behave in a different way when he has enough savings with him and his behavior
would automatically change when he is bankrupt.

Importance of Personality Development

An individual’s personality refers to his/her appearance, characteristics, attitude, mindset and behavior with
others.
Let us go through the importance of personality development.
Personality development grooms an individual and helps him make a mark of his/her own. Individuals
need to have a style of their own for others to follow them. Do not blindly copy others. You need to set an
example for people around. Personality development not only makes you look good and presentable but also
helps you face the world with a smile.
Personality development goes a long way in reducing stress and conflicts. It encourages individuals to look
at the brighter sides of life. Face even the worst situations with a smile. Trust me, flashing your trillion dollar
smile will not only melt half of your problems but also evaporate your stress and worries. There is no point
cribbing over minor issues and problems.
Personality development helps you develop a positive attitude in life. An individual with a negative attitude
finds a problem in every situation. Rather than cribbing and criticizing people around, analyze the whole
situation and try to find an appropriate solution for the same. Remember, if there is a problem, there has to be a
solution as well. Never lose your cool. It would make the situation worse.
It is essential for individuals to behave well with people around. Being polite with others will not only make
you popular among other people but also earn you respect and pride. You can’t demand respect by being rude
with people around. Personality development plays an important role in developing not only your outer but also
inner self. Human being is a social animal. One needs people around. An individual needs to have that magnetic
power which attracts people towards him. You need to have that charisma of yours. Personality development
helps you gain recognition and acceptance from the society as well as people around.
Personality development plays an essential role not only in an individual’s professional but also personal lives.
It makes an individual disciplined, punctual and an asset for his/her organization. An in-disciplined individual
finds it difficult to survive in the long run. Personality development teaches you to respect not only your Boss
and fellow workers but also family members, friends, neighbours, relatives and so on. Never make fun of
anyone at the workplace. Avoid criticizing and making fun of your fellow workers.
One should never carry his/her attitude or personal grudges to work. Office is not a place where you can be rude
to others just because you had a fight with your friend last night. Personality development sessions help you
differentiate between your personal as well as professional life. It is really essential to keep a balance between
both the lives to lead a peaceful and stress free life.
Personality development helps an individual to inculcate positive qualities like punctuality, flexible
attitude, willingness to learn, friendly nature, eagerness to help others and so on. Never hesitate to share
information with others. Always reach office on time. Some people have a tendency to work till late. Late
sittings not only increase your stress levels but also spoil your personal life. Sitting till late at the office
indicates that an individual is extremely poor in time management skills.
Personality development helps you develop an impressive personality and makes you stand apart from the rest.
Personality development also plays an essential role in improving one’s communication skills. Individuals
ought to master the art of expressing their thoughts and feelings in the most desired way. Personality
development makes you a confident individual who is appreciated and respected wherever he goes.

MYERS-BRIGGS TYPE INDICATOR (MBTI)

The Meyers-Briggs Type Indicator (MBTI) is an instrument designed to evaluate people and provide descriptive profiles of
their personality types. Based on the theories of psychologist Carl Jung, it is widely used in the fields of business,
education, and psychology.
MBTI was developed by Isabel Briggs Meyers and her mother, Katharine Cook Briggs, during World War II. The two
women were acquainted with Jung's theories and sought to apply them to help civilians choose wartime jobs well-suited to
their personality preferences. Meyers and Briggs felt that this would make people happier and more productive in their
work. Consulting Psychologists, bought the rights to MBTI in 1975. The company estimates that it administers MBTI
testing to two million people per year worldwide.
The MBTI system begins with a test in which participants respond to questions that provide clues about their basic outlook
or personal preferences. These responses are scored to see where participants' preferences lie within four sets of attributes:
extroversion/introversion; sensing/intuiting; thinking/feeling; and judging/perceiving.
The attributes extroversion (E) and introversion (I) indicate whether a participant derives his or her mental energy
primarily from other people or from within. Similarly, the attributes sensing (S) and intuiting (N) explain whether a
participant absorbs information best through data and details or through general patterns. The attributes thinking (T) and
feeling (F) show whether a participant tends to make decisions based on logic and objective criteria or based on emotional
intelligence. Finally, the attributes judging (J) and perceiving (P) indicate whether a participant makes decisions quickly or
prefers to take a more casual approach and leave his or her options open.
The MBTI system organizes the four sets of attributes into a matrix of sixteen different personality types. Each type is
indicated by a four-letter code. For example, ESTJ would designate a person whose primary attributes were extroversion,
sensing, thinking, and judging. For each personality type, the MBTI system includes a profile which describes the
characteristics common to people who fit into that category.
For example, an article in the Harvard Business Review noted that people who fit into the category ISTP tend to be "cool
onlookers—quiet, reserved, and analytical; usually interested in impersonal principles, how and why mechanical things
work; flashes of original humor," while people of type ENFJ are "sociable, popular; sensitive to praise and criticism;
responsive and responsible; generally feel real concern for what others think or want."
MBTI is a popular evaluative tool. Many colleges and universities use it in career counseling to help guide students into
appropriate fields for their personality types. In the business world, companies use it to make hiring decisions, identify
leadership potential among employees, design training for specific employee needs, facilitate team building, and help
resolve conflicts between employees. By giving people an increased understanding of their behavior and preferences,
MBTI is said to help them increase their productivity, build relationships, and make life choices.
Proponents of MBTI see the testing system as a valuable aid to personal development and growth. But critics of MBTI
argue that its personality profiles are so broad and ambiguous that they can be interpreted to fit almost anyone. Some also
worry that, once a university career counselor or employer knows a person's "type," that person might tend to be
pigeonholed or pushed in a certain direction regardless of his or her desires. Finally, some psychologists have criticized the
MBTI system on the grounds of "confirmation bias," meaning that the results are self-fulfilling because people tend to
behave in ways that are predicted for them. In other words, a person who learns that he or she is "outgoing" according to
MBTI will be more likely to behave that way.
THE BIG 5 PERTSONALITY MODEL
What Are the Big Five Dimensions of Personality?
Today, many researchers believe that they are five core personality traits. 1 Evidence of this theory has been
growing for many years, beginning with the research of D. W. Fiske (1949) and later expanded upon by other
researchers including Norman (1967), Smith (1967), Goldberg (1981), and McCrae & Costa (1987).
The "big five" are broad categories of personality traits. While there is a significant body of literature
supporting this five-factor model of personality, researchers don't always agree on the exact labels for each
dimension.
You might find it helpful to use the acronym OCEAN (openness, conscientiousness, extraversion,
agreeableness, and neuroticism) when trying to remember the big five traits. CANOE (for conscientiousness,
agreeableness, neuroticism, openness, and extraversion) is another commonly used acronym.
It is important to note that each of the five personality factors represents a range between two extremes. For
example, extraversion represents a continuum between extreme extraversion and extreme introversion. In the
real world, most people lie somewhere in between the two polar ends of each dimension.
These five categories are usually described as follows.
Openness
This trait features characteristics such as imagination and insight. 1 People who are high in this trait also tend to
have a broad range of interests. They are curious about the world and other people and eager to learn new things
and enjoy new experiences.
People who are high in this trait tend to be more adventurous and creative. People low in this trait are often
much more traditional and may struggle with abstract thinking.
High
Very creative
Open to trying new things
Focused on tackling new challenges

Happy to think about abstract concepts

Low
Dislikes change
Does not enjoy new things
Resists new ideas
Not very imaginative
Dislikes abstract or theoretical concepts
Conscientiousness
Standard features of this dimension include high levels of thoughtfulness, good impulse control, and goal-
directed behaviors.1 Highly conscientious people tend to be organized and mindful of details. They plan ahead,
think about how their behavior affects others, and are mindful of deadlines.
High
Spends time preparing
Finishes important tasks right away
Pays attention to detail
Enjoys having a set schedule
Low
Dislikes structure and schedules
Makes messes and doesn't take care of things
Fails to return things or put them back where they belong
Procrastinates important tasks
Fails to complete necessary or assigned tasks
Extraversion
Extraversion (or extroversion) is characterized by excitability, sociability, talkativeness, assertiveness, and high
amounts of emotional expressiveness.1 People who are high in extraversion are outgoing and tend to gain
energy in social situations. Being around other people helps them feel energized and excited.
People who are low in extraversion (or introverted) tend to be more reserved and have less energy to expend in
social settings. Social events can feel draining and introverts often require a period of solitude and quiet in order
to "recharge."
High
Enjoys being the center of attention
Likes to start conversations
Enjoys meeting new people
Has a wide social circle of friends and acquaintances
Finds it easy to make new friends
Feels energized when around other people
Say things before thinking about them
Low
Prefers solitude
Feels exhausted when having to socialize a lot
Finds it difficult to start conversations
Dislikes making small talk
Carefully thinks things through before speaking
Dislikes being the center of attention
How Extroversion in Personality Influences Behavior
Agreeableness
This personality dimension includes attributes such as trust, altruism, kindness, affection, and other prosocial
behaviors.1 People who are high in agreeableness tend to be more cooperative while those low in this trait tend
to be more competitive and sometimes even manipulative.
High
Has a great deal of interest in other people
Cares about others
Feels empathy and concern for other people
Enjoys helping and contributing to the happiness of other people
Assists others who are in need of help
Low
Takes little interest in others
Doesn't care about how other people feel
Has little interest in other people's problems
Insults and belittles others
Manipulates others to get what they want
Neuroticism
Neuroticism is a trait characterized by sadness, moodiness, and emotional instability. 1 Individuals who are high
in this trait tend to experience mood swings, anxiety, irritability, and sadness. Those low in this trait tend to be
more stable and emotionally resilient.
High
Experiences a lot of stress
Worries about many different things
Gets upset easily
Experiences dramatic shifts in mood
Feels anxious
Struggles to bounce back after stressful events
Low
Emotionally stable
Deals well with stress
Rarely feels sad or depressed
Doesn't worry much
Is very relaxed

Personality test and their practical application

Personality tests are techniques designed to measure one's personality. They are used to diagnose
psychological problems as well as to screen candidates for college and employment. There are two types
of personality tests: self-report inventories and projective tests.
Labelling temperament
Creating personality tests and labelling temperaments for a broad audience can be challenging. Most tests are designed
with the empirical data backing them up in mind; they make the assumption that personality is something genetic, that we
are born with. In many ways this is indeed true- we are a product of our DNA. In other ways, our surroundings, or our
environment, influences our personalities. Factors like cultural tradition, family, and religion can also affect how a person
thinks and behaves.
Planning for all these eventualities explains some of the differences and abundance in personality tests and temperament
analyses that exist today. Each of these tests were created for a purpose based on a preferred psychological theory, of
which there are many to choose from.
Some tests were set up to assist with personnel hire for companies. Human Resources departments are looking for the right
people to place in the jobs where they will be the most effective. Certain personality types are suited for different kinds of
work; for instance, an extremely detail-oriented person may find themselves quickly frustrated in a job where projects are
open-ended and their role isn’t clearly defined. Likewise, highly creative and artistically strong individuals might have
trouble adapting to a job that is rigid, not allowing them to utilize their creative thinking skills to do their job well.
Practical application
Understanding the strengths and unique qualities of different personality types isn’t just the arena of company hiring
squads. Psychologists use their knowledge of human temperaments to assist with therapy to tailor what they know about
their patient to make treatment plans more effective. Personality types are important when training sports teams, when
teaching students in classrooms, and when traveling the world and engaging with new people.
PERCEPTION
Meaning and concept of Perception

Perception is an intellectual process of transforming sensory stimuli to meaningful information. It is the process of
interpreting something that we see or hear in our mind and use it later to judge and give a verdict on a situation, person,
group etc.
Perception depends on complex functions of the nervous system but subjectively seems mostly effortless because this
processing happens outside of conscious awareness.

According to Joseph Reitz; “Perception includes all those processes by which an individual receives information about his
environment—seeing, hearing, feeling, tasting and smelling.”

According to B. V. H. Gilmer, “Perception is the process of becoming aware of situations, of adding meaningful
associations to sensations.”

Factors Affecting Perception

Perception is the process by which an individual selects, organizes, and interprets information to create a
meaningful picture. Perception depends not only on the physical stimuli but also on the stimuli’s relation to the
surrounding field and on conditions within the individual. Perception is a process by which individuals organize
and interpret their sensory perceives in order to give meaning to their environment.
However, what one perceives can be substantially different from objective reality. It is the process through
which the information from the outside environment is selected, received, organized and interpreted to make it
meaningful.
This input of meaningful information results in decisions and actions. A number of factors operate to shape and
sometimes distort perception. These factors can reside in the perceiver in the object or target being perceived, or
in the context of the situation in which the perception is made.
When an individual looks at a target and attempts to interpret what he or she sees, that interpretation is heavily
influenced by the personal characteristics of the individual perceiver.
Personal characteristics that affect perception include a person’s attitudes, personality, motives, interests, past
experiences, and expectations.
There are some factors that influence the target such as- novelty, motion, sounds, size, background, proximity,
similarity, etc.
Characteristics of the target being observed can affect what is perceived. Because targets are not looked at in
isolation, the relationship of a target to its background also influences perception, as does our tendency to group
close things and similar things together.
There are also some situational factors like the time of perceiving others, work settings, social settings, etc.
which influence the perception process.
Besides these, there are some other factors like perceptual learning which is based on past experiences or any
special training that we get, every one of us learns to emphasize some sensory inputs and to ignore others.
Another factor is the mental set, which refers to preparedness or readiness to receive some sensory input.
Such expectancy keeps the individual prepared with good attention and concentration. The level of knowledge
we have may also change the way we perceive his or her behaviors.
For example;
if a person knows that her friend is stressed out over family problems then she might overlook her snappy
comments. Learning has a considerable influence on perception.
It creates expectancy in people. The nature of the things which have to be perceived is also an influential factor.
By nature we mean, whether the object is visual or auditory, and whether it involves pictures, people or animals.
Perception is determined by both physiological and psychological characteristics of the human being whereas
sensation is conceived with only the physiological features.
Thus, perception is not just what one sees with the eyes it is a much more complex process by which an
individual selectively absorbs or assimilates the stimuli in the environment, cognitively organizes the perceived
information in a specific fashion and then interprets the information to make an assessment about what is going
on in one’s environment.
When an individual looks at a target and attempts to interpret what he or she sees, that interpretation is heavily
influenced by the personal characteristics of the individual perceiver.
Personal characteristics that, affect perception included a person’s attitudes, personality motives interest, past
experiences, and expectations.
Perceptual Process
The perceptual process allows us to experience the world around us.
In this overview of perception and the perceptual process, we will learn more about how we go from detecting
stimuli in the environment to actually taking action based on that information and it can be organized into our
existing structures and patterns, and are then interpreted based on previous experiences.
Although the perception is a largely cognitive and psychological process, how we perceive the people and
objects around us affects our communication.
Actually perception process is a sequence of steps that begins with the environment and leads to our perception
of a stimulus and action in response to the stimulus.
In order to fully understand how the perception process works, we have to follow each of the following steps.
3 stages of perception process are;
 Selection.
 Organization.
 Interpretation.
Selection
The world around us is filled with an infinite number of stimuli that we might attend, but our brains do not have
the resources to pay attention to everything.
Thus, the first step of perception is the decision of what to attend to.
When we attend to one specific thing in our environment — whether it is a smell, a feeling, a sound, or
something else entirely — it becomes the attended stimulus.
Selecting is the first part of the perception process, in which we focus our attention on certain incoming sensory
information. In selection, we choose stimuli that attract our attention.
We focus on the ones that stand out to our senses (sight, sound, smell, taste, and touch). We take information
through all five of our senses, but our perceptual field includes so many stimuli that it is impossible for our
brains to process and make sense of it all.
So, as information comes in through our senses, various factors influence what actually continues on through
the perception process.

Organization
Once we have chosen to attend to a stimulus in the environment, the choice sets off a series of reactions in our
brain.
This neural process starts with the activation of our sensory receptors (touch, taste, smell, sight, and hearing).
Organizing is the second part of the perception process, in which we sort and categorize information that we
perceive based on innate and learned cognitive patterns.
Three ways we sort things into patterns are by using proximity, similarity, and difference (Stanley, mo).
Interpretation
After we have attended to a stimulus, and our brains have received and organized the information, we interpret
it in a way that makes sense using our existing information about the world Interpretation simply means that we
take the information that we have sensed and organized and turn it into something that we can categorize.
By putting different stimuli into categories, we can better understand and react to the world around us.
Perception of others involves sensing, organizing, and interpreting information about people, and what they say
and do. The sensation is a main characteristic of perception as it relates to outside input. In the perceptual
process, firstly the perceiver should select what will be perceived.
Then, the organization takes place when listeners identify the type of sound and compare it to other sounds
heard in the past.
Interpretation and categorization are generally the most subjective areas of perception, as they involve decisions
about whether listeners like what they hear and want to keep listening.
We make immediate evaluations that cause automatic judgments of positive and negative reactions toward
others, which occur outside of our awareness.
The selection, organization, and interpretation of perceptions can differ among different people.
On the basis of these, the perceptual output that means, values, attitudes, behavior, etc. of the perceiver may
differ.
Therefore, when people react differently in a situation, part of their behavior can be explained by examining
their perceptual process, and how their perceptions are leading to their responses.
Errors in Perception
As seen above perception is the process of analyzing and understanding a stimulus as it is.
But it may not be always possible to perceive the stimuli as they are.
Knowingly or unknowingly, we mistake the stimulus and perceive it wrongly.
Many times the prejudices in the individual, time of perception, unfavorable background, lack of clarity of stimulus, confusion, conflict
in mind and such other factors are responsible for errors in perception.
There are some errors in perception;
 Illusion.
 Hallucination.
 Halo Effect.
 Stereotyping.
 Similarity.
 Horn Effect.
 Contrast.
Illusion
The illusion is a false perception. Here the person will mistake a stimulus and perceive it wrongly.
For example, in the dark, a rope is mistaken as a snake or vice versa. The voice of an unknown person is mistaken as a friend’s voice. A
person standing at a distance who is not known may be perceived as a known person.
Hallucination
Sometimes we come across instances where the individual perceives some stimulus, even when it is not present.
This phenomenon is known as a hallucination. The person may see an object, person, etc. or he may listen to some voice though there are
no objects and sounds in reality.
Selective Perception
Selective perception means the situation when people selectively interpret what they see on the basis of their interests, background,
experience, and attitudes.
It means any characteristics that make a person, object, or event stand out will increase the probability that it will be perceived.
Because it is impossible for us to assimilate everything we see, only certain stimuli can be taken in.
Halo Effect
The individual is evaluated on the basis of perceived positive quality, feature or trait. When we draw a general impression about an
individual on the basis of a single characteristic, such as intelligence, sociability, or appearance, a halo effect is operating.
In other words, this is the tendency to rate a man uniformly high or low in other traits if he is extraordinarily high or low in one particular
trait: If a worker has few absences, his supervisor might give him a high rating in all other areas of work.
Stereotyping
People usually can fall into at least one general category based on physical or behavioral traits then they will be evaluated. When we
judge someone on the basis of our perception of the group to which he or she belongs, we are using the shortcut called stereotyping.
or example, a boss might assume that a worker from a Middle East country is lazy and cannot meet performance objectives, even if the
worker tried his best.
Similarity
Often, people tend to seek out and rate more positively those who are similar to themselves. This tendency to approve of similarity may
cause evaluators to give better ratings to employees who exhibit the same interests, work methods, points of view or standards.
Horn Effect
When the individual is completely evaluated on the basis of a negative quality or feature perceived. This results in an overall lower rating
than an acceptable rate.
He is not formally dressed up in the office, that’s why he may be casual at work too.
Contrast
The tendency to rate people relative to other people rather than to the individual performance he or she is doing. Rather will evaluate an
employee by comparing that employee’s performance with other employees.
In the early 20th Century, Wilhelm Wundt identified contrast as a fundamental principle of perception, and since then the effect has been
confirmed in many different areas.
These effects shape not only visual qualities like color and brightness but other kinds of perception, including how heavy an object feels.
One experiment found that thinking of the name “Hitler” led to subjects rating a person as more hostile.
Basically, we use the above shortcuts when we judge others. Perceiving and interpreting what others do is burdensome. As a result,
individuals develop techniques for making the task more manageable.
These techniques are frequently valuable-they allow us to make accurate perceptions rapidly and provide valid data for making
projections. But sometimes it also creates problems.
Because firstly, we have said that these are the shortcuts.
In these ways, we can judge others in a short period of time but sometimes we mistakenly judge others by these shortcuts.
MOTIVATION

Definition and concept of motive and motivation

Concept of Motivation:
The term motivation is derived from the word ‘motive”. The word ‘motive’ as a noun means an objective, as a
verb this word means moving into action. Therefore, motives are forces which induce people to act in a way, so
as to ensure the fulfillment of a particular human need at a time. Behind every human action there is a motive.
Therefore, management must provide motives to people to make them work for the organization.

Motivation may be defined as a planned managerial process, which stimulates people to work to the best of their
capabilities, by providing them with motives, which are based on their unfulfilled needs.
“Motivation means a process of stimulating people to action to accomplish desired goods.” —William G. Scott
“Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward.” —
Flippo

Theories of Motivation
Content Theories of Motivation

Maslow’s theory of the hierarchy of needs, Alderfer’s ERG theory, McClelland’s achievement motivation
theory, and Herzberg’s two-factor theory focused on what motivates people and addressed specific factors like
individual needs and goals.

Maslow’s theory of the hierarchy of needs

The most recognized content theory of motivation is that of Abraham Maslow, who explained motivation
through the satisfaction of needs arranged in a hierarchical order. As satisfied needs do not motivate, it is the
dissatisfaction that moves us in the direction of fulfillment.

Needs are conditions within the individual that are essential and necessary for the maintenance of life and the
nurturance of growth and well-being. Hunger and thirst exemplify two biological needs that arise from the
body’s requirement for food and water. These are required nutriments for the maintenance of life.

Competence and belongingness exemplify two psychological needs that arise from the self’s requirement for
environmental mastery and warm interpersonal relationships. These are required nutriments for growth and
well-being.

Needs serve the organism, and they do so by:

  generating wants, desires, and strivings that motivate whatever behaviors are necessary for the
maintenance of life and the promotion of growth and well-being, and
 generating a deep sense of need satisfaction from doing so.

Maslow’s legacy is the order of needs progressing in the ever-increasing complexity, starting with basic
physiological and psychological needs and ending with the need for self-actualization. While basic needs are
experienced as a sense of deficiency, the higher needs are experienced more in terms of the need for growth and
fulfillment.

In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then,
the next higher level of need has to be activated in order to motivate the man. Maslow identified five levels in
his need hierarchy as shown in figure 17.2.

These are now discussed one by one:

1. Physiological Needs
These needs are basic to human life and, hence, include food, clothing, shelter, air, water and necessities of life.
These needs relate to the survival and maintenance of human life. They exert tremendous influence on human
behaviour. These needs are to be met first at least partly before higher level needs emerge. Once physiological
needs are satisfied, they no longer motivate the man.

2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety and security needs. These needs
find expression in such desires as economic security and protection from physical dangers. Meeting these needs
requires more money and, hence, the individual is prompted to work more. Like physiological needs, these
become inactive once they are satisfied.

3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness, etc. It is
this socialising and belongingness why individuals prefer to work in groups and especially older people go to
work.
4. Esteem Needs:
These needs refer to self-esteem and self-respect. They include such needs which indicate self-confidence,
achievement, competence, knowledge and independence. The fulfillment of esteem needs leads to self-
confidence, strength and capability of being useful in the organisation. However, inability to fulfill these needs
results in feeling like inferiority, weakness and helplessness.

5. Self-Actualisation Needs
This level represents the culmination of all the lower, intermediate, and higher needs of human beings. In other
words, the final step under the need hierarchy model is the need for self-actualization. This refers to fulfillment.

The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one is
potentially good at. In effect, self- actualization is the person’s motivation to transform perception of self into
reality.

According to Maslow, the human needs follow a definite sequence of domination. The second need does not
arise until the first is reasonably satisfied, and the third need does not emerge until the first two needs have been
reasonably satisfied and it goes on. The other side of the need hierarchy is that human needs are unlimited.
However, Maslow’s need hierarchy-theory is not without its detractors.

The main criticisms of the theory include the following:

1. The needs may or may not follow a definite hierarchical order. So to say, there may be overlapping in need
hierarchy. For example, even if safety need is not satisfied, the social need may emerge.

2. The need priority model may not apply at all times in all places.

3. Researches show that man’s behaviour at any time is mostly guided by multiplicity of behaviour. Hence,
Maslow’s preposition that one need is satisfied at one time is also of doubtful validity.

4. In case of some people, the level of motivation may be permanently lower. For example, a person suffering
from chronic unemployment may remain satisfied for the rest of his life if only he/she can get enough food.

Notwithstanding, Maslow’s need hierarchy theory has received wide recognition, particularly among practicing
managers. This can be attributed to the theory’s intuitive logic and easy to understand. One researcher came to
the conclusion that theories that are intuitively strong die hard’.

2. Herzberg’s Motivation Hygiene Theory:

The psychologist Frederick Herzberg extended the work of Maslow and propsed a new motivation theory
popularly known as Herzberg’s Motivation Hygiene (Two-Factor) Theory. Herzberg conducted a widely
reported motivational study on 200 accountants and engineers employed by firms in and around Western
Pennsylvania.
He asked these people to describe two important incidents at their jobs:
(1) When did you feel particularly good about your job, and

(2) When did you feel exceptionally bad about your job? He used the critical incident method of obtaining data.

The responses when analysed were found quite interesting and fairly consistent. The replies respondents gave
when they felt good about their jobs were significantly different from the replies given when they felt bad.
Reported good feelings were generally associated with job satisfaction, whereas bad feeling with job
dissatisfaction. Herzberg labelled the job satisfiers motivators, and he called job dissatisfies hygiene or
maintenance factors. Taken together, the motivators and hygiene factors have become known as Herzberg’s
two-factor theory of motivation

Herzberg’s motivational and hygiene factors have been shown in the Table 17.1

According to Herzberg, the opposite of satisfaction is not dissatisfaction. The underlying reason, he says, is that
removal of dissatisfying characteristics from a job does not necessarily make the job satisfying. He believes in
the existence of a dual continuum. The opposite of ‘satisfaction’ is ‘no satisfaction’ and the opposite of
‘dissatisfaction’ is ‘no dissatisatisfaction’.

According to Herzberg, today’s motivators are tomorrow’s hygiene because the latter stop influencing the
behaviour of persons when they get them. Accordingly, one’s hygiene may be the motivator of another.
However, Herzberg’s model is labeled with the following criticism also:
1. People generally tend to take credit themselves when things go well. They blame failure on the external
environment.

2. The theory basically explains job satisfaction, not motivation.

3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a person may dislike part of
his/ her job, still thinks the job acceptable.

4. This theory neglects situational variable to motivate an individual.

Because of its ubiquitous nature, salary commonly shows up as a motivator as well as hygine.

Regardless of criticism, Herzberg’s ‘two-factor motivation theory’ has been widely read and a few managers
seem untaminar with his recommendations. The main use of his recommendations lies in planning and
controlling of employees work.

THE PROCESS THEORY

Vroom’s Expectancy Theory:

One of the most widely accepted explanations of motivation is offered by Victor Vroom
in his Expectancy Theory” It is a cognitive process theory of motivation. The theory is
founded on the basic notions that people will be motivated to exert a high level of effort
when they believe there are relationships between the effort they put forth, the
performance they achieve, and the outcomes/ rewards they receive.

The relationships between notions of effort, performance, and reward are depicted in
Figure 17.3

Thus, the key constructs in the expectancy theory of motivation are:

1. Valence:
Valence, according to Vroom, means the value or strength one places on a particular
outcome or reward.

2. Expectancy:
It relates efforts to performance.
3. Instrumentality:
By instrumentality, Vroom means, the belief that performance is related to rewards.

Thus, Vroom’s motivation can also be expressed in the form of an equation as follows:
Motivation = Valence x Expectancy x Instrumentality

Being the model multiplicative in nature, all the three variables must have high positive
values to imply motivated performance choice. If any one of the variables approaches to
zero level, the possibility of the so motivated performance also touches zero level.

However, Vroom’s expectancy theory has its critics. The important ones are:
1. Critics like Porter and Lawler lebeled it as a theory of cognitive hedonism which
proposes that individual cognitively chooses the course of action that leads to the
greatest degree of pleasure or the smallest degree of pain.

2. The assumption that people are rational and calculating makes the theory idealistic.

3. The expectancy theory does not describe individual and situational differences.

But the valence or value people place on various rewards varies. For example, one
employee prefers salary to benefits, whereas another person prefers to just the reverse.
The valence for the same reward varies from situation to situation.

In spite of all these critics, the greatest point in me expectancy theory is that it explains
why significant segment of workforce exerts low levels of efforts in carrying out job
responsibilities.

Porter and Lawler’s Expectancy Theory:

In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory.
They posit that motivation does not equal satisfaction or performance. The model
suggested by them encounters some of the simplistic traditional assumptions made
about the positive relationship between satisfaction and performance. They proposed a
multi-variate model to explain the complex relationship that exists between satisfaction
and performance.

What is the main point in Porter and Lawler’s model is that effort or motivation does not
lead directly to performance. It is intact, mediated by abilities and traits and by role
perceptions. Ultimately, performance leads to satisfaction,. The same is depicted in the
following Fig 17.4.
There are three main elements in this model. Let us briefly discuss these one by one.

Effort:
Effort refers to the amount of energy an employee exerts on a given task. How much
effort an employee will put in a task is determined by two factors-

(i) Value of reward and

(ii) Perception of effort-reward probability.

Performance:
One’s effort leads to his/her performance. Both may be equal or may not be. However
the amount of performance is determined by the amount of labour and the ability and
role perception of the employee. Thus, if an employee possesses less ability and/or
makes wrong role perception, his/her performance may be low in spite of his putting in
great efforts.

Satisfaction:
Performance leads to satisfaction. The level of satisfaction depends upon the amount of
rewards one achieves. If the amount of actual rewards meet or exceed perceived
equitable rewards, the employee will feel satisfied. On the country, if actual rewards fall
short of perceived ones, he/she will be dissatisfied.

Rewards may be of two kinds—intrinsic and extrinsic rewards. Examples of intrinsic

rewards are such as sense of accomplishment and self-actualisation. As regards
extrinsic rewards, these may include working conditions and status. A fair degree of
research support that, the intrinsic rewards are much more likely to produce attitudes
about satisfaction that are related to performance.

There is no denying of the fact that the motivation model proposed by Porter and
Lawler is quite complex than other models of motivation. In fact motivation itself is not
a simple cause-effect relationship rather it is a complex phenomenon Porter and Lawler
have attempted to measure variables such as the values of possible rewards, the
perception of effort-rewards probabilities and role perceptions in deriving satisfaction.

They recommended that the managers should carefully reassess their reward system
and structure. The effort-performance-reward-satisfaction should be made integral to
the entire system of managing men in organisation.

Contemporary theories

Equity theory of Motivation

Everyone in the workplace is motivated by something. This motivation could be external in nature, such a
money, and status, or internal, such as a desire to do a good job. Leaders and managers have sought to
understand theories of motivation and then test them in the workplace to increase the productivity and
effectiveness of their workforce.

Stacey Adams equity theory

John Stacey Adams' equity theory helps explain why pay and conditions alone do not determine motivation. It
also explains why giving one person a promotion or pay-rise can have a demotivating effect on others.

When people feel fairly or advantageously treated they are more likely to be motivated; when they feel unfairly
treated they are highly prone to feelings of disaffection and demotivation.

Employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they
receive from it against the perceived inputs and outcomes of others. The belief in equity theory is that people
value fair treatment which causes them to be motivated to keep the fairness maintained within the relationships
of their co-workers and the organization.

Words like efforts and rewards, or work and pay, are an over-simplification - hence the use of the terms inputs
and outputs. Inputs are logically what we give or put into our work. Outputs are everything we take out in
return.

Inputs

This equity theory term ecompasses the quality and quantity of the employees contributions to his or her work.
Typical inputs include time, effort, loyalty, hard work, commitment, ability, adaptability, flexibility, tolerance,
determination, enthusiasm, personal sacrifice, trust in superiors, support from co-workers and colleagues, skill...

Outputs

Outputs in equity theory are defined as the positive and negative consequences that an individual perceives a
participant has incurred as a consequence of his/her relationship with another. Outputs can be both tangible and
intangible. Typical outcomes are job security, esteem, salary, employee benefits, expenses, recognition,
reputation, responsibility, sense of achievement, praise, thanks, stimuli...

It's all about the money

Payment however, is the main concern and therefore the cause of equity or inequity in most cases. In any
position, an employee wants to feel that their contributions and work performance are being rewarded with their
pay. According to equity theory, if an employee feels underpaid then it will result in the employee feeling
hostile towards the organization and perhaps their co-workers, which may result the employee not performing
well at work anymore.

It's the subtle variables that also play an important role for the feeling of equity. Just the idea of recognition for
the job performance and the mere act of thanking the employee will cause a feeling of satisfaction and therefore
help the employee feel worthwhile and have more outcomes.

Perception of equity

But Adams' Equity Theory is a far more complex and sophisticated motivational model than merely assessing
effort (inputs) and reward (outputs). Equity Theory adds a crucial additional perspective of comparison with
'referent' others (people we consider in a similar situation). 'Referent' others are used to describe the reference
points or people with whom we compare our own situation, which is the pivotal part of the theory.

Equity does not depend on our input-to-output ratio alone - it depends on our comparison between our ratio and
the ratio of others. We form perceptions of what constitutes a fair ratio (a balance or trade) of inputs and outputs
by comparing our own situation with other 'referents' (reference points or examples) in the market place as we
see it. If we feel are that inputs are fairly rewarded by outputs (the fairness benchmark being subjectively
perceived from market norms and other comparable references) then generally we are happier in our work and
more motivated to continue inputting at the same level.

If we feel, however, that our ratio of inputs to outputs is less beneficial than the ratio enjoyed by referent others,
then we become demotivated in relation to our job and employer.

Examples of equity theory at work

In practice this helps to explain why people are so strongly affected by the situations (and views and gossip) of
colleagues, friends, partners etc., in establishing their own personal sense of fairness or equity in their work
situations.

Equity Theory explains why people can be happy and motivated by their situation one day, and yet with no
change to their terms and working conditions can be made very unhappy and demotivated, if they learn for
example that a colleague (or worse an entire group) is enjoying a better reward-to-effort ratio.

This also explains why and how full-time employees will compare their situations and input-to-output ratios
with part-time colleagues, who very probably earn less, however it is the ratio of input-to-output - reward-to-
effort - which counts, and if the part-timer is perceived to enjoy a more advantageous ratio, then so this will
have a negative effect on the full-timer's sense of Equity, and with it, their personal motivation.
Question Bank

2 Marks

1. What are the key components of Maslow's Hierarchy of Needs, and how do they relate to employee
motivation?
2. Define organizational culture and its importance in organizational behavior

3. How can OB theories be applied to enhance employee motivation in organizations?

4. Give an example of how a principle of OB can guide decision-making in leadership.

5. What role does social influence play in shaping attitudes and behaviors?
6. Describe the concept of perception in organizational behavior.

7. Identify two models of motivation commonly applied in organizational settings.

8. Define the Expectancy Theory of motivation and outline its key components.

9. Describe one model of personality commonly used in organizational behavior research.

10. Identify a key factor influencing motivation in the workplace.

11. Discuss the significance of emotional intelligence in strategic leadership.

12. Name two strategic management models commonly used by leaders.

6 marks question
1. Offer concrete examples to demonstrate the practical application of OB concepts in organizational settings.
Describe the Big Five personality traits model and the Myers-Briggs Type Indicator (MBTI), outlining the
differences between the two approaches.
2. Evaluate the impact of OB concepts on team dynamics and performance, and discuss strategies for leveraging
these concepts to optimize team effectiveness.
3. Elaborate on the relevance of OB principles in enhancing employee engagement and fostering a positive
organizational climate.
4. Explain how individual behavior influences Organizational Behavior (OB), providing examples to illustrate the
impact of individual differences, attitudes, and perceptions on organizational outcomes.
5. Define the term "theory" in the context of Organizational Behavior (OB) and discuss two prominent theories
in OB.
6. Evaluate the impact of cultural differences on perception and behavior in multinational organizations. Discuss
how cultural values, norms, and communication styles influence individuals' perceptions of themselves,
others, and their work environment.
7. Describe the Big Five personality traits model and the Myers-Briggs Type Indicator (MBTI), outlining the
differences between the two approaches.
Long Questions
1. Discuss the applicability of OB theories in understanding and managing organizational change. Evaluate how the
adoption of OB theories can facilitate smooth transitions and mitigate resistance to change within organizations.
2. Discuss the contributions of psychology, sociology, and anthropology to the field of Organizational Behavior (OB).
Explain how insights from these disciplines help in understanding employee behavior, organizational dynamics,
and cultural diversity within organizations
3. Define perception in the context of organizational behavior and describe the perceptual process. Discuss the
significance of perception for understanding individual behavior in organizations and its impact on organizational
outcomes. Provide examples to support your discussion.