Organizational Behavior (OB)

What is an Organization?
 An organization is a group of people who come together to achieve common goals.
 These goals can be making profit (like in companies) or serving society (like in NGOs or
schools).
Example: A school, hospital, company, or government office — all are organizations.

What is Behavior?
 Behavior means how a person acts or responds to different situations.
 It includes things like talking, working, helping others, or even reacting to problems.
Example: Coming to work on time, cooperating with team members, or showing frustration —
all are behaviors.

What is Organizational Behavior (OB)?

 OB is the study of how people think, feel, and behave in an organization.
 It helps us understand:
o Why people behave the way they do at work.
o How to improve teamwork, motivation, and leadership?
o How to solve problems like conflicts or low performance?

Importance of Organizational Behavior

 Helps managers understand employees better.
 Improves communication and teamwork.
 Increases employee motivation and satisfaction.
 Reduces conflicts at the workplace.
 Helps in solving labor or performance-related problems.
 Builds a positive work environment.
Question: Why is studying OB important?
Answer: To make the workplace more productive, positive, and efficient by understanding and
managing people's behavior.

Levels of OB Analysis
We can study OB at three levels:
1. Individual Level
 Focuses on a single person's behavior.
 Factors like personality, attitude, learning, perception, and motivation are studied.
 Example: Why does one employee work hard and another doesn't?
2. Group Level
 Studies behavior when people work in teams or groups.
 Includes teamwork, leadership, conflicts, group dynamics.
 Example: How team members support each other or how conflicts arise.
3. Organizational Level
 Looks at the organization as a whole.
 Includes structure, culture, rules, and policies.
 Example: How company culture affects employee satisfaction.

Organizational Behavior System

Like any system, OB has:
 Inputs: Factors that influence people (e.g., leadership style, environment, personality).
 Processing: How people think, learn, and get motivated.
 Outputs: The behavior you can see (e.g., performance, teamwork, job satisfaction).

Basic Assumptions of OB
 Human behavior is complex — it’s not always predictable.
 People are different — every person is unique.
 People are goal-oriented — they work to achieve something.
 The environment influences behavior.
 People learn and change continuously.
 Conflicts and diversity are natural in the workplace.
 Everyone deserves respect and dignity.

Contributing Disciplines to OB
OB combines knowledge from many subjects:
Subject What it adds to OB
Psychology How people think, feel, and behave.
Sociology Group behavior and social interactions.
Anthropology Culture and human development.
Political Science Power, leadership, and workplace politics.
Economics Decision-making and resource use.
Social Psychology How people influence each other's behavior.

Determinants of Individual Behavior

Many factors affect how a person behaves at work:
1. Biological Factors
Age, gender, physical appearance, health condition.
2. Psychological Factors
Personality, attitudes, perception, learning, motivation.
3. Social Factors
Family background, culture, friends, peer groups.
4. Organizational Factors
Work environment, leadership style, company policies.
Mental Processes: Beliefs, Attitudes, Values, Needs, Motives,
Behavior
These things shape how people behave:
 Beliefs: What a person believes is true.
 Attitudes: How a person feels about something (positive or negative).
 Values: What is important to them (like honesty, respect).
 Needs: Basic requirements — money, respect, growth.
 Motives: Reasons for doing something.
 Behavior: Final actions based on all the above.

Emotions and Cognitive Dissonance

Emotions
 Feelings like happiness, anger, sadness.
 They affect behavior positively or negatively.
Example: A happy employee works better; a frustrated one may cause problems.
Cognitive Dissonance
 When actions and beliefs don’t match, it causes discomfort.
 People either change their actions or beliefs to reduce the discomfort.
Example: If you believe honesty is important but you lie, you may feel uncomfortable.

Purpose of Studying Organizational Behavior

 To improve relationships between employees and management.
 To create a healthy, productive work environment.
 To predict and guide employee behavior.
 To handle challenges like conflict, motivation, leadership.

Managing People in the Organization is Not Easy as it Seems

Explanation
 Many people think managing employees is simple — just give instructions and get
results.
 But in reality:
o People have different personalities and attitudes.
o Conflicts and misunderstandings happen.
o Motivating employees is not easy.
o Emotions, stress, and cultural differences affect performance.
 Managers need to:
o Understand individual differences.
o Communicate well.
o Solve conflicts.
o Motivate and guide employees.
Definition
Managing people means understanding their needs, behavior, emotions, and guiding them to
achieve personal and organizational goals.
Concept of Perception
Perception is the process through which individuals select, organize, and interpret sensory
information to understand their environment. It helps people transform raw sensory input
into meaningful experiences.
 It’s not a passive reception but an active process.
 Perception is influenced by expectations, past experiences, and psychological state.
Example:
If two employees watch a manager give feedback, one might perceive it as helpful guidance,
while another might see it as criticism, depending on their past experiences and attitudes.

Nature / Features of Perception

 Selective: We cannot process all stimuli; our brain filters information based on relevance.
 Subjective: Two people can perceive the same situation differently.
 Based on Past Experiences: Memories and knowledge influence perception.
 Constantly Changing: As we gain new information, perceptions can evolve.
 Organizing: Perception arranges stimuli into patterns or wholes (Gestalt principles).
 Active Process: We interpret rather than just receive data.

Perceptual Process (Step-by-Step)

Step 1: Sensation
Sensory organs detect stimuli (light, sound, touch). Example: Hearing a loud noise.
Step 2: Attention
Focusing on certain stimuli while ignoring others. Example: At a noisy party, focusing on one
conversation.
Step 3: Organization
Grouping information into understandable forms (like shapes, patterns). Example: Seeing a
cluster of dots and recognizing a face.
Step 4: Interpretation
Assigning meaning based on experiences and expectations. Example: Interpreting a smile as
friendliness.
Step 5: Response
Based on perception, we react or form opinions. Example: Approaching someone who smiled.

Factors Affecting Perception

A. Perceiver Factors
 Attitudes: Positive or negative feelings influence perception.
 Motives: Needs or desires direct focus.
 Past Experiences: Shape expectations.
 Emotions: Mood can color perception.
B. Target Factors
 Novelty: New or unusual stimuli attract attention.
 Motion: Moving objects are more noticeable.
 Size: Larger stimuli often get more attention.
 Background: Context affects how we see something.
C. Situation Factors
 Context: Surrounding conditions influence perception.
 Timing: When and how info is presented matters.
 Social Setting: Presence of others can affect perception.

Social Perception (In Organizations)

A. Social Perception: How We Get to Know Others?
We form impressions based on behavior, appearance, and communication cues. This helps in
teamwork and leadership.
B. Attribution Theory: Making Judgments about Others
 Internal Attribution: Behavior due to personality or disposition.
 External Attribution: Behavior due to situational factors.
Example: If a colleague misses a deadline, is it because they’re lazy (internal) or because they
had technical issues (external)?
C. Attribution Errors
 Fundamental Attribution Error: Overemphasizing personality traits while ignoring
situational influences when judging others.
 Self-Serving Bias: Attributing successes to self and failures to external factors.

Perception and Individual Decision Making

Perception shapes the way information is interpreted which directly affects decision quality.
 Misperceptions can lead to poor decisions.
 Accurate perception improves understanding of problems and solutions.

Individual Decision Making Theories/Models

Rational Model
 Define the problem
 Identify decision criteria
 Weigh criteria
 Generate alternatives
 Evaluate alternatives
 Choose best option
Bounded Rationality Model
 Decision makers have limits on time, knowledge, and cognitive capacity. They settle for
a satisfactory, not optimal, choice.
Intuitive Model
 Decisions based on gut feelings, especially when time is limited.
Recognition-Primed Decision Model
 Experienced individuals recognize patterns and quickly choose a solution without
extensive analysis.
Improving Individual Decision Making
 Collect thorough info: Avoid jumping to conclusions.
 Avoid biases: Be aware of common errors.
 Consider alternatives: Don’t settle on the first solution.
 Slow down: Take time if possible.
 Feedback: Review past decisions to improve.

Common Biases and Errors in Decision Making

 Overconfidence: Believing one knows more than they do.
 Anchoring: Relying too heavily on initial information.
 Confirmation: Seeking info that supports existing beliefs.
 Hindsight: Believing past events were predictable.
 Availability: Overvaluing information that is easy to recall.

Individual Differences in Decision Making

 Analytical Style: Logical, systematic.
 Conceptual Style: Creative, broad perspective.
 Behavioral Style: Focus on people and emotions.
 Directive Style: Quick, focused on facts.

Organizational Constraints on Individual Decision Making

 Time pressure limits thorough analysis.
 Budget/resource constraints restrict options.
 Policies and procedures may restrict choices.
 Hierarchy can delay or limit decisions.

Concept of Learning
Learning is the process by which behavior or knowledge changes due to experience, leading to
lasting change.
Important Components of Learning
 Motivation: Desire to learn.
 Stimulus: The event triggering learning.
 Response: Reaction or change in behavior.
 Reinforcement: Positive or negative feedback that influences learning.

Learning Theories / Major Models

A. Cognitive Theories
Focus on how people process information and develop understanding (e.g., problem-solving,
memory).
B. Social Learning Theory
People learn by observing and imitating others (modeling). Key components: attention, retention,
reproduction, motivation.
Factors Influencing Learning
 Individual differences: Intelligence, experience.
 Environment: Supportive atmosphere improves learning.
 Task complexity: Simple vs complex tasks.
 Reinforcement: Rewards and feedback.

Principles of Learning
 Active participation aids retention.
 Reinforcement strengthens learning.
 Practice is necessary.
 Learning must be meaningful.
 Immediate feedback helps correct errors.

Significance of Learning
 Enhances skills and knowledge.
 Enables adaptation to change.
 Supports innovation.
 Builds employee confidence.

Behavior Modification
A technique using reinforcement and punishment to encourage desired behaviors and reduce
undesired ones.

Steps in Behavior Modification

1. Identify behavior to change (e.g., tardiness).
2. Measure current behavior (baseline).
3. Analyze causes (why does it happen?).
4. Develop intervention: Use rewards (positive reinforcement) or consequences
(punishment).
5. Implement intervention.
6. Evaluate outcomes.
7. Maintain changes or adjust approach as needed.
Personality & Job Satisfaction
Personality = Your long-term style of thinking, feeling, and behaving.
Job Satisfaction = How happy and content you feel with your job (money, respect, growth,
etc.).
These two are closely linked because your personality influences:
✔ Which jobs you enjoy
✔ How you deal with stress
✔ Whether you stay in a job or quit
Let’s break it down in detail:

Personality – What Is It?

Definition:
 Your consistent behavior style (like being shy, outgoing, organized, or careless).
 Made up of traits (such as being curious or anxious) that stay stable over time.
Why Does Personality Matter?
 It helps predict job performance (for example, organized people do well in structured
jobs).
 It explains conflicts at work (like a loud extrovert vs. a quiet introvert).
 It affects career satisfaction (creative people dislike rigid jobs).

The Big Five Personality Traits (OCEAN Model)

Scientists describe personality using five main traits. Here’s what they mean:
Trait High Score Low Score Best Jobs For Them
Creative, curious, loves Prefers routine, dislikes Artist, scientist,
Openness
new ideas change entrepreneur
Organized, disciplined, Careless, forgetful, Manager, accountant,
Conscientiousness
punctual procrastinates surgeon
Energetic, outgoing, Quiet, reserved, dislikes
Extraversion Sales, PR, politics
enjoys attention crowds
Friendly, cooperative, Critical, competitive, Nurse, teacher,
Agreeableness
helpful manipulative counselor
Moody, anxious, easily Calm, handles pressure Pilot, bomb squad,
Neuroticism
stressed well CEO
Real-Life Example:
 Someone with high Conscientiousness and low Neuroticism = Great for being a CEO
or surgeon (organized and calm under stress).
 Someone with high Openness and high Extraversion = Perfect for being a travel
blogger or actor (creative and outgoing).

What Shapes Personality? (7 Key Factors)

Your personality develops from:
1. Genes (Biological) – Traits inherited from parents (e.g., shyness or short temper).
2. Brain & Body – Hormones, looks (like height or beauty), health all affect confidence.
3. Childhood & Family – Strict parents often raise disciplined kids; abusive homes can
cause anxiety.
4. Culture – Western cultures value independence; Asian cultures often value teamwork.
5. Friends & Social Media – Friends and influencers can affect behavior.
6. Education & Intelligence – Smarter people often score high on curiosity (Openness).
7. Work Environment – A toxic workplace can make even positive people stressed.
Example:
 A military child may grow up disciplined (high Conscientiousness).
 A creative arts student may be open to new experiences (high Openness).

Personality at Work (Who Fits Where?)

Personality influences:
✅ Job performance (Conscientious people meet deadlines).
✅ Leadership style (Extraverts motivate teams; Introverts are deep thinkers).
✅ Stress management (Neurotic people stress easily; calm people stay composed).
Important Work-Related Traits:
Trait Impact on Job
Internal = Believes "I control my success"; External = Believes "luck
Locus of Control
controls my life"
Self-Esteem High = Confident; Low = Self-doubt
Machiavellianism High = Manipulative, focused on power; Low = Honest
Risk-Taking High = Likes risky jobs (entrepreneur); Low = Prefers safe jobs
Type A Personality Competitive, hardworking, stressed
Type B Personality Relaxed, patient, balanced

Job Satisfaction – Why It Matters

Job Satisfaction = How happy you feel at work
It depends on:
💰 Salary (Is it fair?)
⚖️Work-Life Balance (Time for family?)
📈 Career Growth (Promotion opportunities?)
🙌 Respect & Recognition (Am I appreciated?)
👥 Good Coworkers (Do I like my team?)
Effects of Job Satisfaction:
Happy Employees 😊 Unhappy Employees 😞
Work harder Do the bare minimum
Stay loyal Quit quickly
Accept changes Resist new ideas
Help coworkers Cause conflicts
How Personality Affects Job Satisfaction:
 Conscientious people → Usually more satisfied (they are organized).
 Neurotic people → Often less satisfied (they worry a lot).
 Agreeable people → Usually happier (they enjoy teamwork).

How to Use This Knowledge?

For Employees:
✔ Choose jobs that suit your personality (creative people should avoid rigid jobs).
✔ Work on improving weak traits (like building organization skills if disorganized).
For Employers:
✔ Hire people whose personalities fit the job (e.g., Extraverts for sales).
✔ Increase job satisfaction (fair pay, recognition, and growth opportunities).

Final Summary (Key Takeaways)

1. Personality is your lifelong behavior pattern (OCEAN traits).
2. It’s shaped by genes, upbringing, and environment.
3. It affects career success (certain jobs suit certain personalities).
4. Job Satisfaction is about happiness at work (pay, respect, balance).
5. Happy employees perform better and stay longer.