ORGANIZATION

AL BEHAVIOUR
BBA SECTION B
CHAPTER 01 INTRODUCTION TO OB
• Definition: OB studies how people, groups, and structure affect behavior in
organizations to boost effectiveness.
• Manager's Role: Involves planning, organizing, leading, and controlling
resources.
• Key Skills: Technical, human, and conceptual skills are vital for managerial
success.
• Disciplines Involved: Draws from psychology, sociology, anthropology,
political science, and social psychology.
• Dependent Variables: Productivity, absenteeism, turnover, job satisfaction,
and OCB (Organizational Citizenship Behavior).
• Independent Variables: Influencers like leadership style and organizational
culture.
• Challenges: Includes managing quality, ethics, innovation, and adapting to
change.
• Contingency Approach: Solutions vary by situation—no universal answer.
• Takeaway: OB equips organizations with tools to improve performance by
focusing on people.
CHAPTER 01 INTRODUCTION TO OB
CHAPTER 02 DIVERSITY, EQUITY AND INCLUSION
• DEI Focus: Ensures fair inclusion across age, gender, race, etc
• Biographical Characteristics: Traits like age, gender, and marital status.
• Ability – Capacity to carry out tasks.
• Intelligence – Includes emotional, social, cognitive, and cultural aspects.
• Physical Abilities: Strength, coordination, and stamina.
• Learning Theories:
• Classical Conditioning: Automatic responses.
• Operant Conditioning: Behavior shaped by rewards/punishments
• Social Learning: Learning by observing others.
• Behavior Shaping: Gradual reinforcement of desired actions.
• Reinforcement Types: Positive, negative, punishment, extinction.
• Schedules: Continuous vs. intermittent reinforcement.
• Behavior Modification (OB Mod): 5-step method for changing behavior at
work.
• Uses in Organizations: Improve discipline, training, attendance, and self-
control
CHAPTER 02 DIVERSITY, EQUITY AND INCLUSION
CHAPTER 03 JOB ATTITUDES
• Values guide behavior (e.g., terminal and instrumental).
• Attitudes include emotional, cognitive, and behavioral parts.
• Cultural Dimensions (Hofstede): Power distance, individualism,
uncertainty avoidance, etc.
• Key Attitudes: Job involvement, commitment, satisfaction.
• Theories:
• Cognitive Dissonance: Inconsistency between beliefs and actions.
• Self-Perception: Attitudes inferred from behavior.
• Outcomes of Job Satisfaction: Better performance, less turnover,
and higher OCB.
• Dissatisfaction Responses: Exit, voice, loyalty, neglect.
• Tools: Attitude surveys for measuring workplace sentiment.
CHAPTER 04 & 05 Personality, Emotions & Individual Differences

• Personality Influences: Shaped by genetics, environment, and

situations.
• Big Five Traits: Openness, conscientiousness, extroversion,
agreeableness, emotional stability.
• MBTI: 16 personality types.
• Holland’s Theory: Fit between job and personality affects satisfaction.
• Key Traits: Locus of control, Machiavellianism, self-esteem, etc.
• Felt vs. Displayed Emotions
• Affective Events Theory: Emotions triggered by events affect work
outcomes.
• Emotional Intelligence: Recognizing, managing one’s own and others'
emotions.
• Gender Differences: Women may express emotions more effectively.
• Takeaway: Understanding traits and emotions enhances selection,
leadership, and teamwork.
CHAPTER 04 & 05 Personality, Emotions & Individual Differences
CHAPTER PERCEPTION AND DECISION MAKING
06
• Perception: How we interpret information from the environment.
• Attribution Theory: Explains behavior as internally or externally caused.
• Fundamental attribution error
• Self-serving bias
• Stereotyping, projection, halo effect
• Applications: Hiring, evaluations, profiling.
• Decision Making:
• Rational Model: Logical and structured.
• Bounded Rationality: Limited info; satisficing decisions.
• Creativity: Driven by expertise, skills, and motivation.
• Biases in Decisions: Overconfidence, anchoring, confirmation bias, etc.
• Intuition & Constraints: Intuition helps under uncertainty but is limited by
time, rules, and history.
• Cultural & Ethical Aspects: Culture shapes decisions; ethical decisions
rely on fairness, rights, and consequences.
• Improvement Tips: Combine logic with intuition and encourage creativity.
CHAPTER PERCEPTION AND DECISION MAKING
06
CHAPTER Motivation Concepts
07
• Motivation: Effort’s intensity, direction, and persistence toward goals.
• Content Theories: Maslow: Hierarchy of needs.
• Herzberg: Hygiene vs. motivators.
• McClelland: Achievement, affiliation, power needs.
• Process Theories: Goal-Setting Theory: Clear goals + feedback = high
performance.
• Equity Theory: Fair treatment matters.
• Expectancy Theory: Belief that effort leads to performance and rewards.
• Job Design: Variety, autonomy, feedback (Job Characteristics Model).
• Reinforcement: Behavior shaped through consequences.
• Takeaway: Align needs, goals, and rewards for strong motivation.
CHAPTER Applying Motivation
08
• MBO: Specific goals + feedback through participative decision-making.
• Employee Involvement
• Participative management
• Representative participation
• ESOPs (stock ownership)
• Job Design Options
• Job rotation, enlargement, enrichment
• Flexible Work Options
• Flextime, job sharing, remote work
• Pay Systems
• Variable pay (bonuses), skill-based pay
• Benefits
• Flexible plans tailored to needs
• Takeaway: Motivation improves with custom plans that meet both employee
and company goals.
CHAPTER Applying Motivation
08
CHAPTER Group Behavior
09
• Groups: 2+ individuals working toward goals.
• Types:
• Formal: Organizational structure
• Informal: Social needs
• Reasons for Joining: Security, status, power, belonging, goal achievement.
• Stages: Forming, storming, norming, performing, adjourning.
• Roles: Identity, expectations, conflict, psychological contract.
• Key Study: Hawthorne Studies—group norms influence performance.
• Group Decision-Making:
• Pros: More ideas, better solutions
• Cons: Conformity, slow, dominance risks
• Groupthink Symptoms: Rationalizing, silence, illusion of agreement.
• Decision Tools: Brainstorming, nominal group, electronic meetings.
CHAPTER Group Behavior
09
CHAPTER Teams at Work
10
• Why Teams? Improve results, involvement, creativity, and
flexibility.
• Groups vs. Teams
• Groups share info
• Teams deliver joint performance
• Team Types: Self-managed, problem-solving, cross-functional,
virtual.
• What Teams Need: Right size, skills, support, authority, and
diversity.
• Building Team Players: Hire, train, and reward for teamwork.
• Use Teams When: Work is complex, goals align, and tasks
depend on collaboration.
CHAPTER Teams at Work
10
CHAPTER Communication
11
• Definition: Sharing information and understanding it.
• Functions: Control, motivation, emotional expression, decision-making support.
• Process: Sender → Encoding → Message → Channel → Decoding → Receiver → Feedback
• Channels:
• Formal: Official routes
• Informal: Grapevine
• Types: Oral, written, nonverbal
• Tech Tools: Email, video calls, intranet
• Knowledge Management: Capturing and sharing organizational insights
• Channel Richness: Richer = more cues, faster feedback
• Barriers: Filtering, overload, perception, emotions, language
• Cross-Cultural Notes: High-context vs. low-context; emphasize empathy and clarity
CHAPTER Communication
11
CHAPTER Leadership
12
• Definition: Leadership means influencing people to achieve goals, while
management focuses on structure and compliance.
• Trait Theories: Early views focused on personal qualities, but no single
trait ensures leadership.
• Behavioral Theories: Leadership can be learned.
• Ohio State: Structure & consideration
• Michigan: People vs. production orientation
• Scandinavian: Emphasizes development and innovation
• Contingency Theories:
• Situational Leadership (SLT): Adjust style based on team readines
• Cognitive Resource Theory: Intelligence helps in low-stress, experience
helps in high-stress
• Leader-Member Exchange (LMX): Better outcomes for “in-group”
members
CHAPTER Leadership
12
CHAPTER Power and Politics
13
• Power: The capacity to influence others, based on dependence.
• Types of Power:
• Formal: Coercive (fear), reward (incentives), legitimate (authority), informational
(knowledge control)
• Personal: Expert (skills), referent (charisma)
• Power Tactics: Rational persuasion, consultation, exchange, pressure, coalitions
• Organizational Politics:
• Legitimate: Networking, influence
• Illegitimate: Manipulative behavior
• Insight: Politics are a part of power dynamics shaped by culture and resources.
CHAPTER Conflict and Negotiation
14
• Conflict: Occurs when one party feels another is
blocking their interests.
• Types:
• Task: Differences in content/goals
• Relationship: Personal clashes
• Process: Disputes about how work is done
• Views on Conflict:
• Traditional: Bad
• Human Relations: Natural
• Interactionist: Can improve performance
• Conflict Process: • Negotiation Types:
• 1. Potential causes • Distributive: Win-lose
• 2. Perception/feeling • Integrative: Win-win
• 3. Intentions (e.g., collaborate, compete) • BATNA: Best alternative if negotiation fails
• 4. Behavior • Third Parties: Mediator, arbitrator, consultant,
• 5. Outcomes (functional or not)
CHAPTER Conflict and Negotiation
14
 CHAPTER Organizational Structure
15
• Core Elements: Specialization, • Key Influences:
departmentalization, chain of command, span • Strategy (e.g., innovation vs. cost-efficiency)
of control, centralization, formalization • Size (larger = more formal)
• Common Structures • Technology (routine vs. non-routine work)
• Simple: Few layers • Environment (volatility, complexity)
• Bureaucracy: Rules, specialization • Behavioral Effects:
• Matrix: Dual reporting (e.g., function and • Specialization = efficiency
product) • Decentralization = empowerment and
• Modern Designs satisfaction
• Team-based: Collaboration
• Virtual: Core staff + outsourcing
• Boundaryless: No fixed divisions
CHAPTER Organizational Culture and Change
16
• Culture: Shared values that guide behavior and shape identity.
• Traits: Focus on innovation, results, people, and stability
• Types: Dominant cultures, subcultures, strong vs. weak cultures
• Functions: Establish norms, unite members, influence actions
• Liabilities: Can hinder change, diversity, and integration
• Formation: Driven by founders, leadership, hiring, and socialization
• Transmission: Through stories, rituals, symbols, and language
• Ethical/Customer Focus: Promotes integrity and service
• Workplace Spirituality: Adds meaning and trust to work environments
CHAPTER HR Policies and Practices
17
• Selection Tools:
• Interviews: Widely used but subjective unless structured
• Tests: Aptitude, personality, integrity
• Simulations: Role plays, work sample
• Training & Development
• Must match learning styles
• Ethics training helps recognize dilemmas
• Career Development
• Employers support, but employees must take ownership
• Performance Evaluation:
• Purposes: Feedback, development, rewards
• What to assess: Behavior, results, traits
• Who evaluates: Supervisors, peers, self
• Methods: Essays, BARS, scales, comparisons
• Feedback: Must be timely and constructive; managers should be trained
• Global/Diversity Considerations: Tailor HR practices and train for inclusion
CHAPTER HR Policies and Practices
18
• Planned Change: Helps organizations adapt; led by change agents
• Resistance to Change: Common but can be reduced by involving and supporting
employees
• Models:
• Lewin’s Model: Unfreeze → Change → Refreeze
• Action Research: Diagnose → Analyze → Act → Review
• OD Techniques: Sensitivity training, feedback, team building, intergroup development,
Appreciative Inquiry
• Innovation & Learning: Encourage creativity via supportive culture
• Learning Organizations: Continuously improve through feedback loops
• Stress Sources: Environmental, organizational, individual
• Outcomes of Stress: Affects health, performance, and behavior
• Management Strategies:
• Individual: Time management, support systems
• Organizational: Communication, redesign, wellness programs
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