UNIT – I Introduction to Organisational Behavior

Introduction
Organizational behaviour (OB) is the domain that deals with understanding
people's behaviour within an organization. The discipline deals with the
individual behaviour of employees, group behaviour of employees, and
behaviour of employees at the organizational level. In addition, the field
investigates the impact of various cognitive, affective and behavioral aspects of
human resources on the effectiveness of an organization (like what motivates
employees, what makes a manager a good leader, how one can manage group
dynamics, etc.). Organizational behaviour is crucial in facilitating present-day
managers in dealing with various organizational challenges and opportunities.
Meaning of Organizational Behaviour
Organizational Behaviour simply is a process of studying and understanding the
behaviour of individuals in the organization. It is a part of the management
process which aims at improving the performance of organizations through
understanding and controlling human behaviour. It is through the organizational
behaviour that organizations are able to understand the behaviour of the people
working with them. Once they get to know about their peoples, organizations
can easily influence and motivating them towards achievement of goals. It helps
to improve the relations between the people working in the organization and
increase their efficiency. There are two main factors which are studied under
organization behaviour term: Individual’s nature and the organization’s nature.
After understanding both the terms properly efforts are made to develop better
compatibility between these two terms.
What is Organizational Behaviour?
Organizational Behavior is a field of study that investigates the impact that
individuals, groups, and structure have on behavior within organizations for the
purpose of applying such knowledge toward improving an organization’s
effectiveness.
Definitions of Organizational Behaviour
According to Stephen P. Robbins: “Organization Behaviour is a field of study
that investigates the impact that individuals, groups and structure have on
behavior within organizations, for the purpose of applying such knowledge
toward improving an organization’s effectiveness.”
According to Moorhead/Griffin: “Organization behaviour is the study of human
behavior in organizational settings that interface between human behavior and
the organization and the organization itself.”
According to Derek Pugh, Organizational behaviour is “the study of the
structure, functioning and performance of organizations, and the behaviour of
groups and individuals within them.”
Fred Luthans has defined OB “as the understanding, prediction, and
management of human behaviour in organizations.”
Greenberg and Baron have defined organizational behavior as a
“multidisciplinary field that seeks knowledge of behaviour in organizational
settings by systematically studying individual, group and organizational
processes.”
According to Newstrom, OB is the “systematic study and careful application of
knowledge about how people—as individuals and as groups—act within
organizations. It strives to identify the ways in which people can act more
effectively.”
According to L. M. Prasad, “Organizational Behavior (OB) can be defined as
the study and application of knowledge about human behaviour related to other
elements of an organization such as structure, technology and social systems.”
According to K Aswathappa, “OB is the study of human behaviour in
organizational setting, of the interface between human behaviour and
organization and of the organization itself.”
Characteristics of Organizational Behaviour
1. Behavioral Approach to Management
OB is a behavioral approach to management. It is a part of management related
with analyzing behavior of human beings in group & organization. It is a distinct
field of study.
2. Science as well as Art OB is both science and art.
It is a systematic body of knowledge about human behavior so it is considered
as science. As an art, the knowledge of OB is applied to improve organizational
effectiveness.
3. Human tool
Organizational behavior is a tool for human benefit which helps the manager in
various areas. It also provides the education needed for creative thinking to
avoid and solve human problems in organizations.

4. Action & goal oriented

OB is a goal directed discipline that studies human behavior and explain it in
organizational context as well as helps in taking proper action to mould that
individual behavior towards the goal achievement of organization.
5. Commonality of Interest
OB helps in providing commonality of interest between individual goals and
organizational goals& objectives. It provides common goals that unite the
variety of individual interests with the interest of organization.
6. Holistic
Concept OB is a holistic concept which relates people, groups, and whole
organization as a system. It gives a broad view of people in organization and
studies many factors that influence their behavior. It includes various
dimensions, thus gives a broad view of human related issues & problems.
7. Integrating Approach
OB is an integrating approach of human, technical and ethical values at work
which draws knowledge from various disciplines such as anthropology,
Psychology, Law, Sociology, Economics, IT Political Science, engineering etc.
8. Cause and Effect Relationship
Human behavior is generally taken in terms of cause-and-effect relationship and
not in philosophical terms. It helps in predicting the behavior of individuals. It
provides generalizations that managers can use to anticipate the effect of
certain activities on human behavior.
9. Organizational Behavior is a Branch of Social Sciences
Organizational behavior is heavily influenced by several other social sciences
viz. psychology, sociology and anthropology. It draws a rich array of research
from these disciplines.
Nature of Organizational Behaviour
The nature it has acquired is identified as follows:
1. A Separate Field of Study and Not a Discipline Only
By definition, a discipline is an accepted science that is based on a theoretical
foundation. But, O.B. has a multi- interdisciplinary orientation and is, thus, not
based on a specific theoretical background. Therefore, it is better reasonable to
call O.B. a separate field of study rather than a discipline only.

2. An Interdisciplinary Approach
Organizational behaviour is essentially an interdisciplinary approach to study
human behaviour at work. It tries to integrate the relevant knowledge drawn
from related disciplines like psychology, sociology and anthropology to make
them applicable for studying and analyzing organizational behaviour.
3. An Applied Science
The very nature of O.B. is applied. What O.B. basically does is the application of
various researches to solve the organizational problems related to human
behaviour. The basic line of difference between pure science and O.B. is that
while the former concentrates of fundamental researches, the latter
concentrates on applied researches. O.B. involves both applied research and its
application in organizational analysis. Hence, O.B. can be called both science as
well as art.
4. A Normative Science

Organizational Behaviour is a normative science also. While the positive science

discusses only cause effect relationship, O.B. prescribes how the findings of
applied researches can be applied to socially accept organizational goals. Thus,
O.B. deals with what is accepted by individuals and society engaged in an
organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is
normative as well that is well underscored by the proliferation of management
theories.

5. A Humanistic and Optimistic Approach

Organizational Behaviour applies humanistic approach towards people working

in the organization. It, deals with the thinking and feeling of human beings. O.B.
is based on the belief that people have an innate desire to be independent,
creative and productive. It also realizes that people working in the organization
can and will actualize these potentials if they are given proper conditions and
environment. Environment affects performance or workers working in an
organization.

6. A Total System Approach

The system approach is one that integrates all the variables, affecting
organizational functioning. The systems approach has been developed by the
behavioral scientists to analyze human behaviour in view of his/her socio-
psychological framework. Man’s sociopsychological framework makes man a
complex one and the systems approach tries to study his/her complexity and
find solution to it.

Scope of Organizational Behaviour

Organization Behaviour has an important role in the achievement of

organization objectives. Scope of organization behaviour is as explained below:

1. Improves the Satisfaction of Employees

Organization behaviour is mainly concerned with understanding the nature of
peoples working in the organization. It gives the complete idea of how people
will respond to the organization. This helps employers in treating their
employees properly and providing them with better facilities. Managers handle
every employee differently as per their nature. Employees also get work as per
their interest and better working conditions. Employees are awarded on the
basis of their performance. It leads to increase overall satisfaction level of all
employees.

2. Reduce the Chances of Conflicts

Conflict is dangerous for successful functioning and growth of every
organization. Every business aims to avoid conflict with their employees.
Organization behaviour helps in developing better relations among employees
and also among employer and employee. There is active participation of every
person in decision-making working in the organization. It avoids all chances of
the difference of opinions because the opinion of every individual working is
considered. This way it reduces the chances of conflicts and helps in
maintaining a peaceful environment.

3. Facilitates Management
Organization behaviour is considered as an important and integral part of the
management process. It is basically concerned with managing and influencing
the individuals working in an organization. Managers find it easy to manage all
the staff when they have a better understanding and knowledge regarding their
subordinates. Organization behaviour does a systematic analysis of peoples
working in the organization and provides all the required information to
employers. It performs analysis of individual behaviour, group behaviour and
organization behaviour. This helps in better management of organization affairs.

4. Helps in Motivation
Companies develop a better system of motivating their employees through
Organisational behaviour. Through Organisational behaviour, complete
information regarding employee’s need and requirement is well understood. It
makes it easy to understand the individual differences and similarities of all
people working at different positions within the organisations. Organisations by
focusing on their needs and requirements can motivate their employees.
Motivated employees work efficiently toward the achievement of the company’s
goals.

5. Increases Organizational Efficiency

It aims at increasing the efficiency of the organisations through maximum

utilization of resources. Organisational behaviour attempts to reduce the
wastage of resources. It helps in the identification of the right type of human
skill required for the organization for better productivity. Accordingly, the
selection and recruitment process are conducted to hire the right people. It
minimizes the wastage of cost and time involved in these processes. It also
helps to recognize the skills and knowledge of different employees working
within the organization. So accordingly, organisations can design their training
and improvement programs to improve their employee’s skills. This will increase
the effectiveness of organization programs thereby increasing the overall
efficiency.

6. Develops Positive Attitude

Organisational behaviour develops a positive working environment within the
organization. It leads to co-operation and mutual trust among peoples working
in the organization. It makes it easy to predict the individual’s behaviour, needs
and requirements. Organization can accordingly focus on employee’s needs and
work for their betterment to increase their satisfaction level. Employees also
develop a sense of belongingness towards the organization when treated
properly. They feel that the organization cares for them. This way the
relationship between employer and employee are improved.
7. Helps in Performance Appraisal
Performance appraisal is an important element for improving the performance
of the employees. Employees when awarded for their good performance feel
motivated to work better. They look forward to being appraised for their good
performance. Organisational behaviour helps to understand the nature and the
manner in which people reacts in the organization. It enables it to predict how
peoples are working as an individual and as a group. Their performance can be
measured easily and accordingly, they can be appraised.

Application of OB in Management
1. Responding to Globalization
Organization in recent days has changed the style of working and tries to
spread worldwide. Trapping new market place, new technology or reducing
cost through specialization or cheap labour are few of the different reasons
that motivates organizations to become global.

2. Managing Workforce Diversity

The increasing heterogeneity of organizations with the inclusion of
different groups. Whereas globalization focuses on differences among
people from different countries. "Workforce diversity has important
implications for management practice. Managers will need to shift their
philosophy from treating everyone alike to recognizing differences and
responding to those differences in ways that will ensure employee
retention and greater productivity while, at the same time, not
discriminating."

3. Improving Quality and Productivity

a. Total Quality Management (TQM)

It is a philosophy of management that is driven by the constant
attainment of customer satisfaction through the continuous
improvement of all organizational processes.

1. Intense focus on the customer

2. Concern for continuous improvement
3. Improvement in the quality of everything the organization does
4. Accurate measurement
5. Empowerment of employees.
 b) Reengineering:
Reconsiders how work would be done and the organization structured if
they were being created from scratch. "It asks managers to reconsider
how work would be done and their organization structured if they were
starting over".

4. Improving people skills

It will help management to better plan and respond to changes in the
workplace. employee relationship is also showing change in the modern
era. Employer Employers are no more autocrats and participative style of
leadership welcomed. Flexible working hours and increased is authority
motivates employees to perform to their best. Management now
welcomes upward communication and participation of lower-level
employees in the decision-making process.

5. Stimulating Innovation and Change

"Today's successful organizations must foster innovation and master the
art of change or they'll become candidates for extinction. An
organization's employees can be the impetus for innovation and change
or they can be a major stumbling block. The challenge for managers is to
stimulate employee creativity and tolerance for change.

6. Work-life Balance
Achieving a work-life balance between work and other important aspects
of life is a big challenge today in every organization. It can be tough to
make time for family and work. Hence, Employers can help employees to
achieve work-life balance by instituting policies, procedures, actions, and
expectations that enable them to pursue more balanced lives, such as
flexible work schedules, company sponsored family events and activities
etc.

7. Improving People Skills

Possessing people skills is essential to have success in todays’
organizations. Employees needs to improve their skills through a little
effort and showing basic common courtesy in their business dealings like
being polite, avoiding conflict, listening, appreciating etc. On the other
hand, employers should also concentrate more on training employees
with this above context.

Steps in Designing Organization Structure:

The process of designing organization structure involves the following steps:
1. Identification of Activities:
Organization structure is developed to achieve objectives. Therefore, first of all,
the activities necessary for the accomplishment of objectives are determined.
The total work is classified or divided systematically because no one can handle
the total work alone. Identification and classification of work enables managers
to concentrate attention on important activities, to avoid duplication of work
and to avoid overlapping or wastage of effort. While identifying and classifying
activities, management must ensure that

(a) all the necessary activities are performed

(b) there is no unnecessary duplication in performing activities and
(c) the different activities are performed in a coordinated manner.

2. Grouping of Activities:
Closely related and similar activities are grouped together to form departments,
divisions or sections. Grouping may be done on several bases depending on the
requirements of the situation. Such grouping of activities is called
departmentation.
3. Assignment of Duties:
Each group of related activities is assigned a position most suited for it. Every
position is occupied by an individual. While assigning duties, the requirements
of the job and the competence of the individual should be properly matched
together. The process of assigning duties goes on till the last level of. the
organization. It creates responsibility and ensures certainty of work
performance.
4. Delegation of Authority.
Appropriate amount of authority is delegated to people to enable them to
perform the assigned duties with confidence. Authority and responsibility are
properly balanced. Delegation of authority creates superior-subordinate
relationships between various positions in the organization. Such relationships
and channels of communication should be clearly defined. Each and every
individual should know clearly from whom he is to take orders and to whom he
is accountable for his performance.
Peter Drucker has suggested three specific ways to find out what kind of
structure is needed to attain the objectives of an enterprise. While designing the
structure of an organization, the activities to be performed, the decisions to be
made and the relations to be established must be analyzed keeping in view the
objectives of the organization.
(i) Activities Analysis.
The first stage in designing an organization structure is to identify and analyze
the activities needed to achieve the objectives of the organization. Activities
provide the building blocks of organization design. Once the activities have
been identified and listed in order of their importance, the next step is to divide
and sub-divide them into smaller homogeneous and manageable units so that
they can be assigned to different individuals. For example, the chief executive
may divide the total work into departments and may delegate authority to
departmental managers. Each departmental manager may sub-divide his work
into sections and appoint a manager in charge of each section.

(ii) Decisions Analysis

The next stage in developing an organization is to identify the decisions needed
to achieve the objectives and to classify these decisions according to their kind
and character. Drucker has suggested four criteria to determine the nature of
decisions:

(a) Degree of futurity.

A decision which commits the organization for a long period in future (e.g., a
decision to set up a new factory) is a major decision and should be taken by top
management.
(b) Impact
If the decision affects several functions (e.g., a decision to change the product
design), it is of high order and should be taken at a higher level of authority. If
the decision affects only one function, it may be taken at a lower level.
(c) Qualitative factors.
A major decision involves several qualitative or intangible factors, e.g., basic
principles of conduct, ethical values, social and political beliefs, etc. Such an
important decision should be taken at high level.
(d) Periodicity:
Major decisions are unique and are taken infrequently. On the other hand, minor
decisions are repetitive and are taken frequently. In short, it is necessary to
analyse all the decisions and to establish their relative importance so as to
determine the levels at which different decisions should be taken.

(iii) Relations Analysis:

Activities and decisions create an interlocking system of relations both vertically
and horizontally. Analysis of relations involves study of what contributions a
manager has to make and what contributions he will require from other
managers. Traditionally, a manager's job is defined only in terms of the activity
he is heading, i.e., in relation with lower-level managers. This alone is not
sufficient and it is also necessary to analyze the upward relationship. It means
defining a manager's job in terms of the contribution it has to make to the larger
unit of which it is a part. It is also necessary to analyze sideways relations, i.e.,
analysis of the contribution, a manager has to make to other managers of the
organization.

Principles of Organisation (Features of a Good Organisation Structure):

The basic principles of organisation are as follows:

1. Unity of Objective
An organisation structure is sound when it facilitates the accomplishment of
objectives. Therefore, the organisation as a whole and every part of it must be
geared to the basic objectives of the enterprise.

2. Specialization or Division of Work

The activities of every member of the organisation should be confined, as far as
possible, to the performance of a single function.

3. Span of Control.
Every manager should have a limited number of subordinates reporting to him
directly. Generally, the span should be narrow for complex work and wide for
simple and routine work. Span should be neither too wide nor too narrow.

4. Scalar Principle.
There should be a clear chain of command extending from top to the bottom of
the organisation. Every subordinate should know who his superior is and who his
subordinates are.

5. Functional Definition.
The duties (functions), authority and responsibility of every position should be
clearly defined so as to avoid duplication of work and overlapping of functions.

6. Exception Principle.
Only exceptional matters which are beyond the authority of lower-level persons
should be referred to higher levels. Routine matters should be dealt with by
executives at lower levels. This is also known as authority level principle.

7. Unity of Command.
Each subordinate should have only one superior whose command he has to
obey. This is necessary to ensure discipline and to fix responsibility for results.

8. Balance.
A proper balance between centralization and decentralization should be kept.
Each function in the organisation should be developed to the point at which the
value received is at least equal to costs.

9. Efficiency
The organisation structure should facilitate the achievement of objectives at
minimum possible cost. It should permit the optimum use of resources.

10. Flexibility
The organisation structure should be adaptable enough to accommodate
technical and other changes in the environment. Therefore, complicated
procedures, red tape and complexity of control should be avoided. At the same
time, the organisation structure should be reasonably stable so as to withstand
changes.
11. Continuity
Proper arrangements should be made for the training and development of
executives.
12. Facilitation of Leadership
Organisation structure should be so devised that there is enough opportunity for
the management to give effective leadership to the enterprise.

13. Parity of Authority and Responsibility.

In every position, the authority and responsibility should correspond. Adequate
authority should be delegated to all levels and wherever authority is delegated
the person should be held responsible.

14. Coordination
The organisation structure should facilitate unity of effort and co-ordination
among different individuals and groups. Channels of communication should be
open and clear.

KEY FACTORS IN ORGANISATIONAL DESIGN:

Key factors in Organizational design of an enterprise are divided into two types:
1. Internal factors
2. External factors

Internal factors:
There are many internal factors affecting an organizational design. The most
important are:
a. Organizational Objectives:
Every Organization is supposed to be an economic organization as well as
a social organization. Therefore, any business enterprises have to fulfill
the needs of social groups like customers, employees. Distributors,
investors the society and the government. So, the enterprise sets up
various goals and objectives which are capable of satisfying these groups.
These objectives can be achieved only when organizational design is
flexible and adaptable to the situation and requirement. Sometimes the
issues like flexibility, adaptability and technical superiority play important
role in achieving organizational goals. These issues are based an
organizational design.

b. Size of the organization:

Size of the organization is another important factor which influences the
organizational design. E.g., If the enterprises are small in size, design will
be very informal. Actions and decisions are made on personal relationship.
But as the organization grows the organizational design moves from
informal to the formalized structure. Because operations are spread
 geographically and people are assigned roles on the basis of their
specialization. Thus, organization becomes bureaucratic.

c. Nature of employees:
Employees differ in nature and their characteristic. So, some of them
prefer formal organisations and some prefer informal structure. This
difference is because of their age, education, intelligence, and experience
etc. e.g., old people feel safe in bureaucratic model but younger ones
prefer more dynamic and informal organizational design and they are
against rules & regulations i.e., bureaucratic model. Similarly educated
employees like interactive and Participant model of decision-making
process as well as flexible organizational design and informal cooperation
of people to get the work done. Further more intelligent employees are
against the bureaucratic rules and prefer short cut ways to get the work
done more efficiently. Employee experience also influences organizational
design. E.g., a newly hired employee seeks guidance and need close
control. But better experienced employees need less control and prefer
more flexible organization.

External Factors:
External Factors also play important role in organizational design. These
include:

a. Environment:
Since the organization are open systems, they must respond to their
external environments. The environment may be of two types:

i) General Environment:
This includes demographical, physical, political, legal, social,
cultural, technological economical etc. All these environments affect
the organizational design.

ii) Task Environment:

This includes competition, customers and suppliers etc. these are
more specific and therefore are highly relevant in designing
organizational structure.

b. Technology:
In highly- technology units operating on the frontiers of technical
development. organizational design should facilitate problem solving
and risk taking. Conversely operating with more well-known and stable
processes should consider structures that facilitate efficiency. As the
range of products and services increases the structure of the
organization should accommodate differences across product and
services.
Individual Behaviour

Individual behaviour refers to the way in which an individual reacts or behaves

at his place of work. It can be defined as a combination of reactions to internal
and external stimuli. Individual behaviour defines how a person will respond
under distinct conditions and will express different emotions such as happiness,
rudeness, love, anger etc. It refers to some concrete action by an individual.
Study of individual behaviour reveals the behaviour of human at the working
environment. Behaviour of an individual have a great influence on the
performance of organization. Positive behaviour will lead to enhance the
productivity. Whereas on another hand, negative behaviour will cause damages
and bring heavy losses for company.

Factors Influencing Individual Behaviour

Various factors affecting the individual behaviour is classified into following
categories: –
1. Personal Factors
2. Environmental Factors
3. Organizational Factors

I. Personal Factors
Personal factors are of two types:
A. Biographic and
B. Learned Characteristics

A. Biographic Characteristics:
Biographic characteristics are genetic nature and are inherited by
individual by their parents or forefathers. These are gifted features that an
individual possesses by birth. All of these biographic characteristics are
listed below: –

1. Psychical Characteristics
Personal characteristics relates to skin, complexion, vision, height, weight,
size of nose etc. which influence the performance of individual. A person
with good physical characteristics has an attractive personality, they dress
well and behave gently in an organization.

2. Age
Age is an individual inherited characteristic that is determined by date of
birth. Young people are expected to be more efficient, energetic, risk-
taking, innovative and ambitious.

3. Gender
Gender is an inherited characteristic as being a men or women is genetic
in nature. Woman are expected to be more emotional than men and
 generates high turnover rates. It is due to more likeness of woman
quitting their job citing personal reasons.

4. Religion
Religious values of individual influence distinct aspects of his/her
behaviour in organization. Highly religious person is stricter towards
following moral values, ethics and code of conduct while performing their
roles.

5. Marital Status
Researcher indicated that with marital status, responsibilities of individual
get inclined and for them having steady proper job becomes more
important. Such employees have less absences, low turnovers and more
job satisfaction.

B. Learned Characteristics:
Learned characteristics refers to the changes in persons behaviour that
comes from his/her interactions with environment.

1. Personality
Personality solely do not refer to physical characteristics of person but
indicates the growth of individual’s psychological system. These are the
personal traits of persons that comprises of patience, extrovertness,
dominance, aggressiveness etc.

2. Perception
It is a viewpoint of individual through which it interprets a particular
situation. Perception is defined as a process via which information enters
mind and an interpretation takes place for providing some sensible meaning
to world.

3. Values

These are global beliefs that guides distinct actions and judgements in
several situations. It comprises of idea of an individual that is based on good,
right and desirable opinions.

II. Environmental Factors

The external environment has an effective role in influencing the individual

behaviour.

A. Employment level
Employment opportunities available within the country act as a major
determinant of individual behaviour. In case of less employment
opportunities, he/she will remain stick to same job level irrespective of
how much satisfaction is attained. However, if there are more
employment opportunities available then employees will shift to other
jobs.
 B. Wages Rate
Monetary compensation is a major factor that every employee
considers before joining any organization. Therefore, a decision
whether to stay in a particular company or shift anywhere else is taken
on the basis of wages he/she is getting.

C. General Economic Environment

Economic cycle in a country greatly influences the behaviour of
individual in an organization. They are subject to retrenchment and
layoffs. Job security and a stable income are the most relevant factors
of motivation for these types of employees. Whereas, employees of
public sector undertakings are not affected by economic position within
the country as they receive their fixed salaries irrespective of economic
conditions.

D. Political Factors
Political factors indirectly influence the behaviour of an individual. In a
politically stable environment, there will be large opportunities of
steady job positions. It will provide better freedom to individual which
will influence their career choice, performance and jib design.

III. Organizational Factors

Wide range of organizational factors influence behaviour of individual
which are listed below:

1. Physical Facilities
Physical environment at work place has a great influence on behaviour
of individual. It comprises of factors like lighting, cleanliness, heat,
noise level, office furnishing, strength of workers etc.,

2. Structure and Design

It is concerned with set-up design of departments within an
organization. Individual behaviour is influenced by where an individual
perfectly fits in a hierarchy of organization.

3. Reward System
Fair reward system adopted by company for compensating its
employees enhances the overall performance and behaviour of
individual.

ATTITUDE: MEANING AND DEFINITION

Attitude is important variable in human behavior which helps in a person’s
personality traits i.e. optimistic or pessimistic, negative or positive etc.

According to Michael Hogg, “An attitude is a negative or positive evaluation of

an object which influences human’s behavior towards that object”.
Martin Fishbein defined attitude as “An attitude is a learned predisposition to
respond in a favorable or unfavorable manner towards people, an object, an
idea or a situation”.

According to Stephen P Robbins, “Attitude are evaluative statements, either

favorable or unfavorable concerning objects, people or events.”

Schermerhorn says, “Attitudes is the predisposition to respond in a positive or

negative way to someone or something in one’s environment.”

According to Newcomb, “Attitude is a learned predisposition to respond in a

consistently favorable or unfavorable manner with respect to given objective.”

Joseph Reitz says, “The word attitude describes a persistent tendency to feel
and behave in a particular way towards some objects.”

COMPONENTS OF ATTITUDE

Famous psychologists Rosenber, Eagley and Holand provided three components

of Attitude:

1) Informational or Cognitive Component

The informational component consists of beliefs, values, ideas and other
information a person has about the object. For example, a person seeking a job
may learn from his own sources and other employees working in the company
that in a particular company the promotion chances are very favorable. In
reality, it may or may not be correct. Yet the information that person is using is
the key to his attitude about that job and about that company.

2) Emotional or Affective Component

The informational component sets the stage for the more critical part of an
attitude, its affective component. The emotional components involve the
person’s feeling or affect-positive, neutral or negative-about an object. For
example, “I like this job because the future prospects in this company are very
good”.

3) Behavioral Component
The behavioral component consists of the tendency of a person to behave in a
particular manner towards an object. For example, the concerned individual in
the above case may decide to take up the job because of good future prospects.

FORMATION OF ATTITUDE Individuals usually learn attitudes from various

sources, it should be noted that attitudes are formed but not inherited from
them. Among the most significant attitude-gaining sources are:
1. Direct experience with the object
One can form attitude towards an object with the help of his direct exposure or
direct experience of that object. Employees, for example , generally form their
attitude to jobs based on their previous experiences. Attitudes can develop from
an object experience which is personally rewarding or punishable. And the
attitude created by experience can hardly be modified.

2. Classical conditioning and attitude

One can also develop attitude with the help of classical condition. If an event
occurs again and again, it develops a different kind of learning and that will
leads towards a particular kind of attitude.

Operant conditioning and Attitude acquisition

One can also develop an attitude with the help of operant conditioning.
According to Skinner (1938), “operant conditioning is a method of learning that
occurs through rewards and punishments for behavior. Through operant
conditioning, an individual makes an association between a particular behavior
and consequence”. According to this theory learning a behavior is usually
followed by a reward or punishment. Operant conditioning depicts that the
behavior of an individual is depend on the kind of different situations. Generally
people used to act in a certain way when they get rewards and sometimes
people used to discourage actions from when they're not getting something.
Such conduct may create a particular sort of attitude.

3. Vicarious learning
One can also learn certain things by observing the behavior of other people
which automatically develop a certain kind of attitude. And this learning is
known as vicarious learning in which a person learns by observing behavior of
others. For example watching TV, movies etc.

4. Family and Peer groups

A person may also learn the attitudes by imitating his or her parents or other
family members. Even from his party of peers too. If parents have a positive
attitude toward a particular phenomenon, the child will admire his parents, and
it is evident that he will adopt a similar attitude, even without being told.
Similarly, behaviors in universities, schools, are learned from peer groups.

5. Neighborhood

Sometimes neighbors also play a significant role in developing a particular kind

of attitude. Each and every neighbor has something different value system or
culture aspects which will automatically provide a kind of impact on our
personality.

6. Economic condition and occupation

The economic condition and work-related roles of one often lead a great deal to
the creation of a certain kind of behavior, and this will shape an attitude
automatically. Our socio-economic history has a very important part to play in
our current and future attitudes.

7. Mass communication
Mass media like television, radio, newspaper, and magazines can also add a lot
to somebody's personality. Media coverage is designed to build a public
attitude.

WAYS OF CHANGING ATTITUDE

There are certain ways for changing attitudes which are as follows:

1. Providing new information

When a person is well informed with all latest and accurate information
about a particular object then that person changes himself accordingly.
New information always helps change attitudes. Once employees become
conscious of the fact that the management think about the welfare of the
workers, they modify their attitude and turn pro-management.

2. Use of Fear
Sometimes fear can prove to be a powerful weapon for changing attitude.
The change will no doubt depend on the degree of fear. Yet often people
tend to become stubborn in their actions when they are being challenged
too far and people can fail to adjust.

3. Influence of friends or peers Changes of attitude can also be

influenced by friends or peers. Here credibility of the peers or friends
matters a lot. Peers or friends having high creditability put more influence
on change.

3. The co-opting approach Co-opting also can be an efficient means of

changing habits. When people are unhappy with a particular situation, and
involve them in changing things. Co-opting can be the most effective form
of changing attitude.
4. Others It is also found that a person is more likely to alter an attitude
kept in private than one that he has publicly mentioned.

Perception

Perception is a psychological process that is related to personality of a person

and has great impact on his behavior. It is opinion and evaluation of a person
about particular event. Perception is depicted as view point of a person. Every
person reacts differently in different situation. The person behaves on the basis
of what he thinks about reality and not necessary as what reality is. It is process
by which a person interprets about something, an event or communication.

Definitions of Perception
According to S.P. Robbins “Perception is a process by which individuals organize
and interpret their sensory impressions in order to give meaning to
environment.”

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 Luthens Fred “Perception is an active psychological process by

which
individuals organize and interpret their sensory impressions in order to give
meaning to their environment.”

According to Udai Pareek “Perception can be defined as the process of

receiving, selecting, organising, interpreting, checking and reacting to sensory
stimuli or data.”

According to Rickey Griffin, “Perception is a set of processes by which an

individual
becomes aware of and interprets information about the environment.”

Importance of Perception
It is important to understand perception process. The world we see is not
necessarily the same as reality is. So, while dealing with people at workplace
perception should be properly understood by manager.

1. Perception is very essential to understand human behavior because every

person interprets the world and deal with life troubles differently. When
dealing with interpersonal conflicts this understanding helps a lot.

2. We can predict behavior of people in different circumstances by

understanding their perception about present environment. So,
management can plan future changes to be made in organisation
according to it.

3. Perception is very important for the supervisors so that can avoid making
mistakes when dealing with employees and while selecting people for
different tasks.

4. Perception plays an important role in business organizations. If perception

is applied and used correctly it can help the business nurture and survive
in the market.

Factors that Influence Perception

1. Characteristics of the Perceiver
Several characteristics of the perceiver can affect perception. When an
individual looks at a target and attempts to interpret what he or she stands
for, that interpretation is heavily influenced by personal characteristics of the
individual perceiver.
 The major characteristics of the perceiver influencing perception are:
 Attitude
 Motives
 Interest
 Experience
 Expectation
 Self-Concept

2. Characteristics of the Target

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

Motion, sound, size and other attributes of a target shape the way we see it.
 Physical appearance
 Verbal communication
 Non-verbal communication
 Objects

3. Characteristics of the Situation

Change in situation leads to incorrect perception about a person.

The factor that influences the perception are:

1. Time
2. Work setting
3. Social setting
PERCEPTION PROCESS

1. Receiving Stimuli – Picking up all external and internal factors.

2. Selecting Stimuli – Selecting the stimuli which will be most
important – This is where the introduction of new employees is
important, they need to be presented in a way where the selected
stimuli are positive.
3. Organising – Grouping and selecting which are the perceptions to
keep.
4. Interpreting – Fundamental Attribution Error, stereotyping, Halo
Effect and projection.
5. Response – The perception is then turned into attitudes,
motivation, feelings and beliefs, which will change the behaviours of
the individuals.

LEARNING:

Meaning of Learning in Organizational Behavior

Learning is the process of attaining new or modified knowledge and skills.
Change in existing behavior because of new knowledge, skill or training is
known as learning. The change should be permanent means there should be
significant change in behavior before and after acquiring some knowledge or
skill and the change must be because of certain kind of experience or training.

Definitions:
In the words of Gestalt’s, “the basis of learning is to gain knowledge after
observing the whole structure. Responding towards the entire situation is
learning.”

Kurt Lewin said that, “The learning as the direct cognitive organization of a
situation. Motivation has a significant role &place in learning.”

Woodworth said that, “The process of acquiring new knowledge and new
responses is the process of learning.”

According to G.D. Boaz (1984) “Learning is the process by which the

individuals acquire various habits, knowledge, and attitudes that are necessary
to meet the demands of life, in general.”

According to Cronbach, “Leaning is shown by a change in behavior as a result

of experience.”

Pavlov has said, “Learning is habit formation resulting from conditioning.”

Zalkind says, “Every aspect of human behavior is responsive to learning

experience, including knowledge, Language, skills, attitude, values and one’s
personality traits.”

According to N. L. Munn, “Learning is described as a process of having one’s

behavior modified more or less permanently, by what he does and the
consequences of his action, or by what he observes.”

According to Hilgard, “Learning is a relatively permanent change in behavior

that occurs as a result of prior experience.”
Characteristics of Learning

1. Learning involves changes:

As indicated earlier, people acquire new information which is processed in
their cognition. This process produces new knowledge. This new
knowledge brings changes in their existing pattern of behaviour.

2. Change must be Relatively Permanent:

When the information acquired is converted into knowledge and wisdom,
people change their behaviour more or less permanently.

3. Behavioural issues:
The change in the knowledge and wisdom should produce different
attitudes and values. These new attitudes and values should change the
behaviour.
 4. Experience-based:
Learning is based on experience. Experience may be direct or indirect,
personal or through observation or through reading.

5. Reinforcement:
The practice and experience must be given due importance for learning to
occur or to be repeated.

PROCESS OF LEARNING IN OB
“Learning is a process of acquiring knowledge, skills, behavior and attitude.”
Learning includes following four stages:

1. Stimulus
Everyone needs a source of motivation to perform something and Stimulus is
a motivating source or an incentive. Learners should have a good perception
of stimuli, as the learner should be supported in the learning process. When
there are no triggers there is no thought. Stimulus can take the form of
'knowledge expansion,' 'abilities and skills,' 'job quality improvement,'
'productivity and profitability,' 'effectiveness,' 'career development,' and
'financial and non-financial incentives.'

2. Response
In theory, reaction is the result of the learner to the stimulus. When the result
is reached, response is the first step in the process of learning. Learner will
respond positively, because only then does the learning process take place
and can he / she respond positively to certain negative reactions only if the
learner is persuaded of positive behavioral changes.

3. Motivation
Motivation is the key catalyst to motivate individuals to learn, because
learning cannot take place without motivation. It's the enthusiasm for
learning that boosts curiosity and attitude. No one can learn without
willingness and this willingness comes from motivation because we all know
that whatever thinking and understanding capacity an one has without
motivation, nobody can learn.
4. Rewards
In learning process, rewards are incentives which learner gets. In learning
process, there should be a clear incentive scheme, and it should be
straightforward and predictive. Employees should be well aware in advance
when studying at various rates of what they can get as return or bonuses.
Rewards can come in both financial and non-financial form. For examples,
praise is the incentive and salary increment etc.

PERSONALITY:

Personality is a term derived from the Latin word 'persona' which means
mask or dress up. This is a mix of certain characteristics or qualities which
define the character of a person. This is a dynamic phenomenon that
combines many distinct human traits. It's hard to grasp as it has contextual
personal characteristics to it. Personality defines a person's recurring
psychological patterns or emotions, feelings, beliefs, and behavior. It
represents the overall profile or combination of stable traits capturing a
person's unique nature.

Personality has components, internal as well as external. External

characteristics or physical features are measurable actions based on which
we draw inferences about the personality of a individual. The inner factors or
cognitive characteristics are inherently more complex feelings, thoughts,
ideas, values and interests.

Definition

According to G W Allport, “Personality is the dynamic organization within

the individual of those psychophysical systems that determines his unique
adjustment to his environment.”

According to R. B. Cattell, “Personality is that which permits a prediction

of what a person will do in a given situation.”

According to Hogan, “Personality refers to the relatively stable pattern of

behaviors and consistent internal states that explain a person’s behavioral
tendencies.”

According to Eysenck, “Personality is more or less a stable and enduring

organization of a person’s character, temperament, intelligence and
physique which determine his unique adjustment to the environment.”

According to Allport, “Personality is the dynamic organization with the

individual of those psycho-physical systems that determine his unique
adjustment to his environment.” According to Valentine, “Personality is the
sum total of innate and acquired disposition.”

According to Child, “Personality refers to more or less stable, internal factors

that makes one person’s behavior consistent from one time to another and
different from the behavior of other people would manifest in comparable
situations.”

Burges says, “Personality is an individual’s unique and relatively stable

pattern of behavior, thoughts and feelings.”

Nature of Personality:

The nature of every individual is attributed to his personality. Generally, an

individual asserts through his behavioural characteristics. Matured persons
with their longstanding experience, take an objective attitude towards
themselves and others. They also introspect, so as to help improve upon
their nature and behaviour.
 i. Self-Conscious:
There is a vast difference between human being and other species. The
special feature of his nature is ‘self-consciousness’, which makes him aware
of his surroundings and self-identity.

ii. Adaptability to Environment:

Personality, off and on, does make adjustments according to the changes
desired. Resistance to change means a conflict with tension and
unpleasantness. Normally, people adapt to the changed situations and
challenges. Adaptation to new situations often follows a modification in
behavioural pattern leading to a smooth working condition and a conducive
environment.

iii. Goal Oriented:

Persons strive for achievement of goal. Individuals do have the drive to
achieve goals. Wants and needs lead to motive. The desire of an individual
directs the behaviour for the fulfilment of the same. Both the physiological
and social motives make behavioural changes.

iv. Integration of Personality:

Personality works in consistency by integrating various activities (of mental
and also experiences of the individual) together. Personality differs in the
form of its integration. Persons with developed personalities are highly
integrated with values and experiences. This depends on the standards of
behaviour, which they have acquired right from the childhood.

Determinants of Personality:
The determinants of personality can be grouped in five broad categories:
1. Biological Factors
2. Cultural Factors
3. Family Factors
4. Social Factors
5. Situational Factors

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

a. Heredity
Heredity refers to those factors that were determined at conception.
Physical stature, facial attractiveness, sex, temperament, muscle
composition and reflexes, energy level, and biological rhythms are
characteristics that are considered to be inherent from one’s parents.
The heredity approach argues that the ultimate explanation of an
individual’s personality is the molecular structure of the genes, located in
the chromosomes.

b. Brain
 The second biological approach is to concentrate on the role that the brain
plays in personality. The psychologists are unable to prove empirically the
contribution of the human brain in influencing personality.
Preliminary results from the electrical stimulation of the brain (ESB)
research give an indication that a better understanding of human
personality and behaviour might come from the study of the brain.

c. Biofeedback
Until recently, physiologists and psychologists felt that certain biological
functions such as brainwave patterns, gastric and hormonal secretions,
and fluctuations in blood pressure and skin temperature were beyond
conscious control.
Now some scientists believe that these involuntary functions can be
consciously controlled through biofeedback techniques. In BFT, the
individual learns the internal rhythms of a particular body process through
electronic signals that are feedback from equipment that is wired to the
body.

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

2. Cultural Factors
Among the factors that influence personality formation is the culture in which
we are raised, early conditioning, norms prevailing within the family, friends and
social groups and other miscellaneous experiences that impact us.
The culture largely determines attitudes towards independence, aggression,
competition, cooperation and a host of other human responses.

3. Family Factors
Whereas the culture generally prescribes and limits what a person can be
taught, it is the family, and later the social group, which selects, interprets and
dispenses the culture. Thus, the family probably has the most significant impact
on early personality development.
A substantial amount of empirical evidence indicates that the overall home
environment created by the parents, in addition to their direct influence, is
critical to personality development.

4. Social Factors
There is increasing recognition given to the role of other relevant persons,
groups and especially organisations, which greatly influence an individual’s
personality. This is commonly called the socialization process.
Socialization involves the process by which a person acquires, from the
enormously wide range of behavioural potentialities that are open to him or her,
those that are ultimately synthesized and absorbed.

5. Situational Factors
Human personality is also influenced by situational factors. The effect of the
environment is quite strong. Knowledge, skill and language are obviously
acquired and represent important modifications of behavior.
An individual’s personality, while generally stable and consistent, does change
in different situations. The varying demands of different situations call forth
different aspects of one’s personality.

Personality Traits
Broadly there are five parameters which describe an individual’s personality.
These five dimensions are also called as “Big Five” Factors, and the model is
referred to as Five Factor Model also abbreviated as FFM.

The Five Factor Model was initially proposed by Costa & McCrae in the year
1992 and often describes the relation between an individual’s personality and
various behaviours.

Following are five personality traits of an individual:

1. Openness to experience
Individuals with openness to experience are generally very active, have a
tremendous inclination towards creativity and aesthetics and listen to their
heart i.e., follow their inner feelings. Such individuals are generally open to new
learnings, skill sets and experiences.
People who score high on openness are quite broadminded and modern in their
outlook as compared to individuals who score low on the same parameter. Such
individuals are conservative, reluctant to changes and have a traditional
approach in life.

2. Conscientiousness
As the name suggests, individuals with a Conscientiousness personality trait
listen
to their conscience and act accordingly. Such individuals are extremely cautious
and self-disciplined. They never perform any task in haste but think twice before
acting.
People with this personality trait are generally methodical and tend to become
perfectionists in the long run. People who score high on conscientiousness are
proactive, goal oriented and self-disciplined. They strive hard to accomplish
goals and objectives within the stipulated time frame. Individuals who scoreless
are little laid back and are not much goal oriented.

1. Extraversion and Introversion

Carl Jung popularized both the terms - “Extraversion” and “Introversion”.

Extraversion:
Extraversion refers to a state where individuals show more concern towards
what is happening outside. Such individuals love interacting with people around
and are generally talkative. They do not like spending time alone but love being
the centre of attraction of parties and social gatherings.
Such individuals love going out, partying, meeting people and often get bored
when they are all by themselves. They admire the company of others and hate
staying alone.

Introversion:
Introversion, on the other hand refers to a state when an individual is concerned
only with his own life and nothing else.
Such individuals do not bother about others and are seldom interested in what
is happening around. They prefer staying back at home rather than going out
and spending time with friends.
Such individuals speak less and enjoy their own company. You would never find
them in meetings, clubs, parties or social get-togethers. They generally do not
have many friends and tend to rely on few trusted ones.

2. Agreeableness
Agreeableness is a personality trait which teaches individuals to be adjusting in
almost all situations.
Such individuals do not crib and face changes with a smile. They accommodate
themselves to all situations and are friendly and kind hearted. People who score
high on agreeableness are ready to help others and flash their trillion-dollar
smile whenever a problem arises.
Individuals who score low on agreeableness on the other hand find difficulties in
adjusting with others and are little unfriendly.

3. Neuroticism
Neuroticism is a trait where individuals are prone to negative thoughts such as
anxiety, anger, envy, guilt and so on. Such individuals are often in a state of
depression and do not know how to enjoy life. They always look at the negative
sides of life and find extremely difficult to cope up with stress.