Individual Behavior in Organizations (IBO)

Definition
Individual Behavior in Organizations studies how person factors (e.g., abilities, values,
personality, identity) interact with situation factors (e.g., roles, culture, systems) to shape
behavior at work and, ultimately, performance and well-being.

Why It Matters
Better prediction of:

 Turnover
 Performance
 OCB (Organizational Citizenship Behavior)
 CWB (Counterproductive Work Behavior)
 Satisfaction
 Innovation

IBO Model
Person (values • personality • identity • abilities)
These are the internal characteristics you bring to work

Situation (role • context • culture • systems)

These are the external factors at work

Behavior (task performance • OCB • creativity • CWB)

What you actually do at work

Outcomes (KPIs • retention • well-being)

The results of behavior, for both the employee and the company
Example:
An employee high in openness (personality) and self-direction (values) with
excellent design skills (abilities) joins a start-up (culture) in a role with high
autonomy (role/context).
This person is likely to engage in creative behaviors and OCB, which leads to high product
innovation (KPI), personal career growth (well-being), and the company retaining them
long-term (retention).

Kurt Lewin's Formula

B = f(P, E)
Behavior = function of the Person and the Environment.

Traits Alone Don’t Determine Behavior

Trait Activation Theory (TAT)

 Traits are potential behaviors — they don’t always show.

 They get “activated” when the situation cues them.

Examples:

 You might be competitive (trait) but not act on it unless your job includes sales targets
or contests (cue).
 An introverted person might still network actively at a conference if their role
demands it (cue activates behavior).

Situation Strength
Situation strength moderates the relationship between traits and behavior.

 Strong situation:
Clear rules, strict protocols, tight supervision → everyone behaves similarly → traits
have less influence.
Example: In an airline cockpit during take-off, even a laid-back pilot will follow the
checklist exactly.
 Weak situation:
Few rules, high autonomy → people’s individual traits influence behavior more.
Example: In a creative brainstorming session, an extravert will speak up more, an
introvert will observe more.
ASA Model (Attraction–Selection–Attrition)
Benjamin Schneider’s model — explains how organizations become homogeneous in their
people.

1. Attraction: People are attracted to organizations where they feel they fit (values,
personality).
2. Selection: Organizations hire those they think fit.
3. Attrition: People who don’t fit leave (voluntarily or involuntarily).

Result: Over time, everyone in the organization becomes similar in certain traits/values —
which is good for culture consistency but risky for groupthink (lack of diversity in thinking).

Fit: Person × Environment

Neither hiring (P) nor job/role design (E) alone is sufficient — managers must design fit.

 You can’t just hire someone with great traits and expect success if the
role/environment doesn’t suit them.
 You can’t just design the perfect role/environment and put any person in it — without
the right traits/values, they won’t thrive.
 Fit means the right person in the right environment.

Values

Definition
Values are deep beliefs about what’s important in life.
They are deep, stable, and evaluative.

Rokeach’s Two Kinds of Values

1. Terminal values → The end goals you want in life
E.g., “comfortable life”, “freedom”, “inner peace”
2. Instrumental values → The ways you behave to reach those goals
E.g., “honest”, “ambitious”, “helpful”
Schwartz’s 10 Basic Values
Schwartz grouped values into 10 types and showed how some values work well.

Two Big Tensions in Values

 Openness to Change vs Conservation
(Love change/freedom vs prefer stability/rules)
 Self-Enhancement vs Self-Transcendence
(Focus on own success/status vs care for others/nature)

Why Values Matter at Work

 People are happier and perform better when their values match the organization’s
values (Person–Organization Fit).
 Values influence:
o What kind of rewards people like
o What leadership style they prefer
o How ethical they are at work

Personality
Definition: Personality is the set of characteristics that make you “you” — the typical way
you think, feel, and behave most of the time.
  These patterns are fairly stable over time, but they can change slowly with major life
experiences.

1. OCEAN – The Big Five Personality Traits

The Big Five model of personality, also called OCEAN, is a widely accepted framework that
describes personality in terms of five broad dimensions.

1. Openness to Experience (O)

o Degree to which a person is curious, imaginative, and open to new ideas and
experiences.
o High scorers: Creative, adaptable, receptive to change.
o Low scorers: Prefer routine, traditional approaches, and familiar situations.
2. Conscientiousness (C)
o Degree of organization, dependability, and goal-directed behavior.
o High scorers: Disciplined, responsible, achievement-oriented.
o Low scorers: Disorganized, careless, less reliable in meeting deadlines.
o Key point: Conscientiousness is the most consistent predictor of job
performance.
3. Extraversion (E)
o Extent of sociability, assertiveness, and activity in interpersonal interactions.
o High scorers: Outgoing, energetic, comfortable in social situations.
o Low scorers (Introverted): Reserved, prefer solitary work or smaller groups.
4. Agreeableness (A)
o Tendency to be cooperative, trusting, and supportive in interactions with
others.
o High scorers: Empathetic, helpful, considerate.
o Low scorers: More competitive, critical, or skeptical.
5. Neuroticism (N) (or low Emotional Stability)
o Tendency to experience negative emotions such as anxiety, anger, or
depression.
o High scorers: More stress-prone, reactive to pressure.
o Low scorers (Emotionally Stable): Calm, resilient, less easily upset.

2. HEXACO Model of Personality

The HEXACO model is an alternative to the Big Five that adds a sixth trait — Honesty–
Humility — and slightly reorganizes the other traits.
It was developed from large cross-cultural studies and is especially useful for predicting
ethical behavior and integrity at work.

Meaning of HEXACO:

 H = Honesty–Humility
 E = Emotionality
 X = Extraversion
 A = Agreeableness
  C = Conscientiousness
 O = Openness to Experience

1. Honesty–Humility (H)
o Tendency to be fair and genuine in dealing with others, not exploiting or
manipulating for personal gain.
2. Emotionality (E)
o Tendency to experience empathy, emotional attachment, and sensitivity to
stress or threat.
3. Extraversion (X)
o Tendency to feel confident, energetic, and engaged in social interactions.
4. Agreeableness (A)
o Tendency to be patient, tolerant, and forgiving in interpersonal situations.
5. Conscientiousness (C)
o Tendency to be organized, diligent, and careful in fulfilling tasks and
responsibilities.
6. Openness to Experience (O)
o Tendency to seek out and appreciate new ideas, experiences, and creative
thinking.

The Dark Triad (subclinical personality traits)

Definition (use this):
The Dark Triad refers to three socially aversive—but non-clinical—personality tendencies
that can appear in normal populations and workplaces: Machiavellianism, Narcissism, and
Psychopathy.
In OB, they’re studied because they predict counterproductive work behavior (CWB),
ethical violations, bullying, and toxic climates. (These are not clinical diagnoses.)

1) Machiavellianism (Mach)

Core idea
A personality trait where a person focuses mainly on personal goals and is willing to
manipulate others to get what they want.
They believe “the ends justify the means”, meaning if the result benefits them, the method
(ethical or not) doesn’t matter.

How it appears at work

 Calculated flattery – praising someone only to get something in return (e.g.,

complimenting a manager before asking for a favour).
 Deception – hiding or twisting facts so decisions go in their favour.
 Withholding information – not sharing key details so others make wrong choices,
keeping an advantage.
 Office politics – building alliances with powerful people, not to help the company but
to strengthen their own position.
  Flexible morals – willing to bend rules if it helps them reach their goal.
 Strategic patience – willing to wait months or years to slowly build influence and
push competitors aside.

Why they can be mistaken for good performers

 They often have polished communication skills and look confident.

 They may appear “strategic” because they think long-term.
 They might rise quickly in the organisation by winning over decision-makers.

Risks to the organisation

 Hidden conflicts – they may turn teams against each other quietly.
 Loss of trust – people feel unsafe sharing information.
 Unethical deals – cutting corners in negotiations or contracts.
 Counterproductive Work Behavior (CWB) – stealing credit for work, giving wrong
information, secretly blocking others’ success.

How it differs from Psychopathy

 Machiavellianism = careful, planned, patient manipulation for long-term goals.

 Psychopathy = impulsive, thrill-seeking, takes risky actions without thinking about
long-term effects.

2) Narcissism

Core idea
A personality trait where a person has an inflated sense of self-importance, believes they are
superior to others, and constantly seeks admiration and attention.

How it appears at work

 Self-promotion – always talking about their achievements, often exaggerating them.

 Craving recognition – needs public praise, awards, or visible credit for work.
 Blame-shifting – takes credit for successes, blames others for failures.
 Image-first decisions – focuses on how things look rather than the actual results.
 Avoids unglamorous tasks – prefers high-visibility projects that make them look
good.
 Overpromising – makes big promises to impress, but may not deliver.

Why they can be mistaken for good performers

 Charismatic – can be charming and inspiring in meetings or pitches.

 Confident – appear fearless in taking on challenges.
 Good at first impressions – often stand out during hiring or promotions.

Risks to the organisation

  High turnover – good employees leave due to lack of recognition or being
undermined.
 Unethical shortcuts – may bend rules to protect their image.
 Conflict – sensitive to criticism, may retaliate or become hostile.
 Focus on self over team – ignores long-term organisational goals for personal glory.

Types of Narcissism

 Grandiose – openly dominant, attention-seeking, believes they deserve special

treatment.
 Vulnerable – insecure, approval-seeking, gets defensive easily.

3) Psychopathy (Subclinical)

Core idea
A personality trait where a person has very low empathy or guilt, is impulsive, and often
takes high risks without considering the consequences for others.

How it appears at work

 Cold decision-making – ignores emotional impact on employees or customers.

 Impulsive actions – takes risks without thinking about long-term effects.
 Rule-breaking – violates policies or laws without concern.
 Bullying/intimidation – uses fear to control others.
 Superficial charm – friendly at first but only for personal gain.

Why they can be mistaken for good performers

 Decisive in crisis – can act quickly without hesitation.

 Appears fearless – willing to make bold moves others avoid.
 Good negotiator – can push hard without feeling pressured.

Risks to the organisation

 Highest deviance risk – fraud, harassment, safety violations.

 Legal exposure – actions can lead to lawsuits or fines.
 Morale damage – employees feel unsafe or stressed.
 Short-term wins, long-term losses – risky deals or strategies that eventually harm the
business.

How it differs from Machiavellianism

 Psychopathy – acts quickly, emotionally detached, no guilt; driven by thrill or

impulse.
 Machiavellianism – plans carefully, manipulates patiently for long-term goals.
Shared Outcomes in Organizations (Dark Triad Impact)

1. More Counterproductive Work Behaviors (CWB)

o Theft, misuse of data, intentional sabotage, faking sick leave to avoid work.
2. Bullying & Harassment
o Abusive supervision, threatening colleagues, spreading rumors.
3. Ethical Breaches
o Bribery, conflict of interest, forging documents.
4. Toxic Climate
o Fear, silence, low trust → less innovation and less extra helpful behavior
(OCB).
5. Short-term Wins, Long-term Costs
o Temporary revenue growth, but later legal trouble, reputation loss, high
turnover.

When Dark Traits Surface (Person × Situation)

1. Trait Activation Theory

 Certain environments “activate” traits.

 Win-at-all-costs incentives → trigger Machiavellianism/Psychopathy.
 Hero-leader cultures → trigger Narcissism.

2. Situation Strength

 Weak rules + high freedom = more dark behaviors.

 Strong processes + oversight = less expression of dark traits.

3. ASA Effect (Attraction–Selection–Attrition)

 Companies that glorify politics or celebrity leaders → attract & keep dark-trait people
→ culture gets worse over time.

Measurement (to detect in theory & selection)

 SD3 (Short Dark Triad) & Dirty Dozen – short questionnaires (not perfect).
 Levenson Psychopathy Scale – measures subclinical psychopathy.
 Caution: People can fake answers → use with structured interviews, role-play tests
(SJTs), reference checks, and work samples.

Mitigation & Management

A) Before Hiring (Selection)

 Integrity tests + HEXACO Honesty–Humility (low score = higher risk).

  Structured ethical interviews (e.g., “Tell me about a time you refused an unethical
opportunity”).
 Situational Judgment Tests (SJTs) & work samples with ethics checks.
 Reference/background checks focused on ethics & teamwork.
 Panel interviews to avoid one person being “charmed” by them.

B) Role & Process Design

 Separate duties, dual approvals, audit logs for risky roles.

 Balanced KPIs: include ethics & teamwork, not just sales/revenue.
 Limit unchecked authority; rotate roles; mandatory leave to catch fraud.

C) Culture & Reinforcement

 Strong code of conduct with real consequences.

 Safe channels to report wrongdoing (whistleblower protection).
 Reward how results are achieved, not just numbers.
 Use 360° feedback to detect abuse or bullying patterns.

D) Managing People with Dark Traits (If Already Hired)

 Narcissists: Frame feedback as protecting the company’s image; reward prosocial

achievements.
 Machiavellians: Remove private deal-making chances; require written decisions and
open sharing.
 Psychopaths: Keep strict boundaries, constant monitoring, no tolerance for
violations; move them out of high-risk roles.

1. Dark Triad vs. HEXACO Honesty–Humility (H–H)

 Honesty–Humility (from HEXACO) = being fair, sincere, and not exploiting others.
 People low in H–H are more likely to have Dark Triad tendencies (especially
Machiavellianism & Psychopathy).
 High H–H acts as a protective factor in ethics-heavy jobs (finance, procurement,
compliance) because it reduces risk of cheating, bribery, and manipulation.

2. Dark Triad vs. Tough Leadership

 Tough leadership = high standards, demanding results, but still ethical and focused on
team success.
 Dark Triad leaders = harm, manipulate, or exploit others purely for self-benefit, even
if it hurts the team or organisation.
 Key difference → Intent & ethics: tough leaders push hard but play fair; Dark Triad
leaders cheat or harm to win.
3. Dark Tetrad

 Expands the Dark Triad (Machiavellianism, Narcissism, Psychopathy) by

adding Everyday Sadism.
 Everyday Sadism = deriving enjoyment or satisfaction from hurting, humiliating, or
seeing others suffer.
 Rarest but most toxic trait — often linked to workplace bullying, deliberate sabotage,
and abusive supervision.

Identity & the Self

Self-concept
Overall understanding of “Who I am” — traits, values, roles, and beliefs.

Core Self-Evaluations (CSE)

Composite of four traits:

1. Self-esteem – overall sense of self-worth.

2. Generalized self-efficacy – belief in ability to handle challenges.
3. Locus of control –
o Internal → outcomes depend on own actions.
o External → outcomes depend on luck, fate, or others.
4. Emotional stability – staying calm and secure under stress.

High CSE is linked to better performance, persistence, and satisfaction.

Self-efficacy (Bandura)
Belief in ability to successfully perform a specific task. Built through:

1. Mastery experiences – success in past tasks.

2. Vicarious learning – observing others succeed.
3. Social persuasion – encouragement from others.
4. Affect regulation – controlling emotions to stay confident.

Social Identity Theory

Part of identity comes from group memberships (e.g., institute, gender, profession). This
leads to in-group bias (favoring one’s own group) and intergroup dynamics (cooperation or
conflict between groups).

D) Abilities
Cognitive ability (g) – reasoning, problem-solving, learning; the best single predictor of
performance in complex jobs.

Physical abilities – strength, coordination, stamina; more relevant for manual or field roles.
Emotional ability (Emotional Intelligence – EI) – ability to perceive, use, understand, and
manage emotions in oneself and others; important for leadership, teamwork, and service
roles. Some EI measures overlap with personality tests.

"Ability sets the performance ceiling; motivation and personality decide where a person
operates under that ceiling."

Context & Roles

Role – the set of expected behaviors associated with a specific position in an organization,
coming from formal sources (job descriptions, policies, SOPs) and informal sources (team
norms, peer expectations, culture).

Types of Role-Related Issues

 Role Ambiguity – lack of clarity about duties, performance criteria, or authority.

Leads to stress, mistakes, and lower satisfaction.
 Role Conflict – incompatible demands placed on an employee.
o Intra-role conflict: conflicting demands within the same role (e.g., speed vs
quality).
o Inter-role conflict: demands from different roles (e.g., work deadlines vs
family responsibilities). Leads to frustration, burnout, and reduced
performance.
 Role Overload – too many tasks or responsibilities for available time, energy, or
resources. Causes burnout, disengagement, and turnover.
 Role Clarity – clear understanding of expectations, goals, and evaluation criteria;
improves performance and commitment.

Context in Organizations
Includes culture, climate, leadership style, structure, technology, and HR systems.

Situation Strength Theory

 Strong situations: strict rules and procedures reduce variation in behavior; personality
matters less (e.g., military, air traffic control).
 Weak situations: few rules, more flexibility, allowing traits to strongly influence
behavior (e.g., creative agencies).

Psychological Safety
A climate where employees feel safe to take interpersonal risks without fear of negative
consequences; encourages learning, collaboration, and innovation.

Zimbardo’s Stanford Prison Experiment

Volunteers assigned as guards or prisoners in a mock prison adopted extreme role behaviors
regardless of prior personalities. Demonstrated that roles and context can override personal
traits. The study raised ethical concerns.
Managerial Implications
Design clear roles, balance workloads, align context with goals, foster psychological safety,
and adjust situation strength depending on role type.

Diversity & Individual Differences

Definition – Diversity refers to the variety of differences among people in an organization.
Individual differences are the unique characteristics (physical, psychological, demographic,
cognitive) that make each person different.

Types of Diversity

 Surface-level diversity – observable characteristics such as age, gender, ethnicity,

and physical ability; influences initial impressions and may trigger stereotypes.
 Deep-level diversity – non-observable characteristics such as values, personality
traits, and attitudes; emerges over time and strongly influences team functioning.

Importance in Organizations

 Benefits: broader perspectives, innovation, market insight, better decision-making,

reduced groupthink when managed well.
 Risks if unmanaged: communication barriers, conflict, in-group vs out-group
dynamics, tokenism.

Inclusion Practices
Fair processes in hiring, bias-aware selection, mentoring, cultural awareness training, and
team-building to build trust across differences.

Key Theories

 Social Identity Theory – people derive self-identity from group memberships, leading
to in-group favoritism and out-group bias.
 Similarity-Attraction Paradigm – people prefer working with similar others, which
can reduce innovation if overemphasized.

Managerial Implications
Recruit for skill and value complementarity, seek cognitive diversity for innovation roles,
match demographic diversity to customer base, set shared team goals, and reward inclusive
behaviors.

Example (Indian Context)

 Surface-level: a sales team from multiple regions of India improves reach and
customer understanding.
 Deep-level: mixing risk-takers (high openness) with detail-oriented planners (high
conscientiousness) in product development teams.