1.

Individual Behavior
Concepts of needs, goals, attitudes, belief and values
Needs
- Deficiencies in human being that triggers behavior
- Individuals engage in behavior to satisfy needs for tension reduction
- Number of motivation theories have been based on needs
o Hierarchy of need theory (Maslow)
o Achievement motivation theory (McClelland)
o ERG theory (Alderfer)

Goals

Attitude
- Evaluative statement or judgment concerning objects, people or events: favorable or
unfavorable
- Mechanism through which people express their feelings
- Formed by variety of forces – personal values, experience, and our personalities
- Contains three components:
o Cognitive: opinion, belief, knowledge a person presumes to have about something
o Affective: feeling towards something, similar to emotion
o Behavioral: intention to behave in a certain way towards something

Belief
- Descriptive thought that an individual holds about something based on knowledge, opinion and
faith
- Acquired from parents, teacher, friends and reference group
- Influence individual behavior by acting as a foundation upon which people structure their life
- Beliefs are developed by – cultural environment or functional factors (need, demand, emotions)

Values
- Basic conviction of an individual as to what is right, good or desirable
- Contains element of judgment and tend to be relatively stable and enduring
- Can be classified as:
o Terminal values: refers to desirable end state of existence
o Instrumental values: preferable modes of behavior

Perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning
to their environment -Robbins

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Characteristics of a perceiver
- Attitudes
- Motives
- Emotions
- Interests
- Experience
- Expectations

Characteristics of perceived
- Novelty
- Motion, sound, size
- Background
- Proximity
- Similarity

Attribution Theory
- How people explain the cause of behavior – internal (person) or external (environment)
- This explanation/determination depends on:
o Distinctiveness: whether individual displays different behavior in different situation
o Consensus: whether everyone in similar situation respond in a same way
o Consistency: whether the person responds in a same way over time
- There are two attribution errors:
o Fundamental Attribution error: underestimate external factor and overestimate
internal factor while judging other’s behavior
o Self-serving bias: attribute own success to internal factors and failure to external factors

Halo effect
drawing general impression of an individual based on a single

Stereotyping
judging someone based on the perception of the group or community s/he belongs to

Contrast effect
evaluation of a person’s characteristics in comparison with other people recently encountered

Ethnocentrism
Ethnocentrism is judging or comparing others based on one’s own culture, values and standard

Personality
- Sum total of ways in which an individual reacts and interacts with others
- Relatively stable sets of psychological and behavioral attributes that distinguish one person from
another

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Determinants of personality
 Heredity
 Socio-Cultural Factors
 Situational Factors

Key Personality attributes

Locus of control –The degree to which an individual believe they are the masters of their own fate
Self efficacy –Deciding how capable one is to perform a given task
Authoritarianism –Belief in having a reasonably high authority in the organization
Machiavellianism –Refers to gain power and control over others
Self esteem –The degree to which one considers to be deserving and worthwhile
Risk propensity – The degree to which an individual is willing to take risks

Big Five personality

 Agreeableness – ability to get along with others
 Conscientiousness – how reliable a person is?
 Negative emotionality – ability to withstand stress, emotionally stable or not?
 Extraversion – one’s comfort level with relationships
 Openness – interest and acceptance of new ideas

Matching personality and jobs

- Based on theory of John Holland
- Matching individual’s personality characteristics and the occupational requirements
- Six personality type and their congruent occupations
o Realistic – mechanic, operator, farmer
o Investigative – biologist, economist, news reporter
o Social – teacher, social worker, counselor
o Conventional – accountant, corporate manager, file clerk
o Enterprising – lawyer, small business manager, real-estate agents
o Artistic – painter, musician, writer, interior designer

Motivation
- Set of forces that lead a people to behave in a certain way
- Individual’s willingness to exert effort to achieve the achieve goals

Process of Motivation
Unsatisfied Tension_____ Actions to satisfy Goal Accomplishment
Needs Physical Needs Needs satisfied
Psychological
Social

Feedback

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Theories of motivation
- Need Based Theories
o Hierarchy of needs theory (Abraham Maslow)
o Motivation – hygiene theory (Fredrick Herzberg)
o ERG Theory (Clayton Alderfer)
o McClelland Theory of needs (David McClelland)
- Process Based theories
o Equity Theory (J. Stacy Adams)
o Expectancy Theory (Victor Vroom)
o Reinforcement Theory (Skinner)

Motivation techniques and Programs

 Management By Objectives (MBO) – technique of self control of performance of employee
through goal setting
 Employee Involvement Programs – physical and mental involvement of employees in decision
making
o Delegation, participative management, work teams
 Skill based pay plans – competency based pay plan where company pay for employee’s range,
depth and types of knowledge, skills and behaviors
 Flexible benefit programs – allow each employee to put together a benefit package tailored to
suit their needs, individualize the rewards

Current issues in motivation and Implication for manager

 Professional employees
 Temporary employees
 Low-skilled service workers
 Employees doing highly repetitive tasks
 Diverse workforce

2. Interpersonal and Group Behavior

Group
- Two or more than two individuals, interacting and interdependent, who have come together to
achieve particular objectives

Types of Group
 Formal Group
o Command Group
o Task Group
 Informal Group
o Interest Group

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 o Friendship group

Reasons for joining Group

 Need Satisfaction
o Security
o Affiliation
o Esteem
o Power
 Goal achievement
 Socialization
 Communication
 Identity

Stages of Group Development

 Forming
 Storming
 Norming
 Performing
 Adjourning

Group Structure
Role
- Position related behavior expected from individual
- Can be:
o Task oriented role
o Relationship oriented role
- Role factors influencing group behavior:
o Role identity, role perception, role expectations, role conflict, psychological contract

Norms
- Acceptable standards of behavior shared by members within a group
- Informal rules of behavior
- Classification:
o Performance norms
o Appearance norms
o Social arrangement norms
o Resource allocation norms
- Conformity is process of adjusting one’s behavior to align with the norms of the group

Status
- Socially defined rank given to group members by others
- Relative standing in the group

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 - Embodies status symbol and status equity
o Status symbol: titles, company car, personal secretary, exclusive membership
o Status equity: perception of equity in a group hierarchy

Contingency variables affecting group behavior

Group Cohesiveness
- Degree to which the group members are attracted to each other and are motivated to stay in
the group
- Sources of group cohesiveness:
o Frequent interaction
o External threats
o Difficulty in entry into a group
o Cooperative atmosphere
o Shred Goals, Attitudes and Values
o Small size
- Increasing group Cohesiveness
o Member similarities
o Group Success
o Group size
o More interaction
o Increased status
o External Competition
o Group Reward
o Attitudes and values

Work Teams
- A cooperative group where individual efforts results in positive synergy through coordinated
efforts
- Yields higher output without any increase in inputs from organization

Types of Work teams

 Problem Solving teams
 Cross Functional teams
 Virtual teams
 Self managed teams

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 -
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Kiran
leaders
- Some common differentiating traits are:
o Drive
o Desire to lead
o Honesty and Integrity
o Self Confidence
o Intelligence
o Job related Knowledge
- Limitations:
3. Leadership
Ability to influence the group towards the achievement of a vision or a set of goals
Influences goal achievement and empowers people to take actions to reach goals

Leadership Theories
Trait theories of leadership

o no universal trait that is applicable in all situation

o traits always do not distinguish leaders from non leaders
o little value in predicting behavior

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- Theories that consider personal qualities and characteristics that differentiate leaders from non

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Behavioral theories
-proposes specific behavior differentiate leaders from non leaders

Ohio State Studies

- identified independent dimensions of a leader behavior
o Initiating Structure: the extent to which a leader is likely to define and structure his/her
role and those of sub-ordinates; task oriented
o Consideration: the extent to which a leader is likely to have job relationship
characterized by mutual trust, respect for sub-ordinates’ ideas and regard for their
feelings; people oriented
- Leaders high in both dimension tend to achieve high performance and satisfaction

University of Michigan Studies

- Came up with two dimensions of leader behavior
o Employee oriented: emphasizes interpersonal relationship
o Production oriented: emphasizes technical aspect of job
- Study favored leader who were employee oriented

Managerial Grid
- Graphical portrayal of a two dimensional view of leadership style

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Contingency Theories

Fiedlers’ Contingency model

- Situation defines leadership effectiveness
- Effective group performance depends on proper match between leadership style and situation
- Leadership style identification
o Relationship Oriented
o Task Oriented
- Defining the situation
o Leader-member relations
o Task structure

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 o Position power
- Matching leadership style with situation for maximum leadership effectiveness
- Task –oriented leaders: favorable and unfavorable situation
- Relationship oriented leaders: Moderately favorable situation

Path Goal Theory

- leader’s job is to provide follower with information, support and other resource necessary for
them to achieve goals

Leader Behavior

- Directive Leadership
- Supportive leadership
- Participative leadership
- Achievement oriented leadership

Contingency Variables

- Personal Characteristics
o Locus of Control
o Perceived ability
o Experience
- Environmental factors
o Task structure
o Formal authority system
o Work group

Using one of four styles contingent on situational factors, the leader attempts to influence sub-
ordinates’ perception and motivate them which leads to role clarity, goal expectancies, satisfaction and
performance.

4. Organizational Communication Process

- Communication is the transfer of information and understanding from one person to another
person

Types of Communication
• Formal – Informal

– Formal: downward, upward, two-way, horizontal. Diagonal

– Informal: single strand, gossip, probability, cluster

 Internal (within the company) – External (company with stakeholders

 Direct - Indirect

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Types of business communication
 Formal Communication
o Inter-operational
o Extra-operational
 Informal Communication
o Personal Communication within organization
o Personal Communication outside the organization

Process of Communication

Interactive Communication (horizontal) in an organization

The classical hierarchical organization structure gives formal recognition only to vertical communication.
Nevertheless, most of the classical theorists saw the need to supplement the vertical with some form of
horizontal system. Horizontal communication is required to make a coordinated effort in achieving
organizational goals. The horizontal requirement becomes more apparent as the organization becomes
larger, more complex and more subject to the downsizing and the flattening of structures.

Implications of Interactive communication

- Interactive communications is mainly represented by networking activities shown to be related
with successful managers
- Interactive communication provides needed social support for an individual

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 - Interactive communication becomes useful when this support is in terms of task co-ordination
to achieve overall goals
- This becomes a sacrifice to an organization when individual only communicates horizontally but
fail to communicate upward or downward

The Purposes and Methods of Interactive Communication

Luthans has summarized four of the most important purposes of interactive communication:

1. Task Coordination: The department heads may meet monthly to discuss how each department is
contributing to the system's goals.

2. Problem Solving: The members of a department may assemble to discuss how they will handle a
threatened budget cut; they may employ brainstorming techniques.

3. Information Sharing: The members of one department may meet with the members of another
department to give them some new data.

4. Conflict Resolution: The members of one department may meet to discuss a conflict inherent in
the department or between departments.

Methods of Interactive Communication

- Departmental meetings
- Inter-departmental meetings
- Teams
- Video conferencing
- Distribution of written reports across departments

5. Inter-Group Conflict Management

Conflict
- Conflict is a process that begins when one party perceives that another party has negatively
affected, or is about to negatively affect, something that the first party cares about

Types of conflict
- Functional and Dysfunctional Conflict
- Task conflict, relationship conflict and process conflict
- Vertical, horizontal and line-staff conflict

Transition in Conflict Thought

- Traditional View: assumed all conflicts are bad; Synonymously used with violence, destruction
and irrationality
- Human Relation View: viewed conflict as a natural occurrence in all group and organization; it
cannot be eliminated and there may be times where conflict may benefit performance

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 - Interactionist view: encouraged conflict when harmonious, peaceful and co-operative group
become static and non-responsive to change and innovation; doesn’t propose all conflicts are
good – functional and dysfunctional conflicts

Conflict Process
- Opposition or Incompatibility
o Communication
o Structure
o Personal Variables
- Cognition and personalization
o Perceived conflict
o Felt Conflict
- Intentions
o Competing
o Collaborating
o Compromising
o Avoiding
o Accommodating
- Behavior
- Outcomes
o Increased group performance
o Decreased group performance

Dynamics of Inter-group Conflicts

- Intra group Dynamics
o Loyalty
o Task accomplishment
o Leadership
o Group structure
o Cohesiveness
- Inter Group dynamics
o Perception
o Interaction and communication
o Orientation

Conflict management approaches and techniques

Conflict stimulation
- Communication
- Bringing in outsiders
- Firing an insider
- Restructuring

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 - Devil’s advocate
- Reward for Dissent

Conflict Resolution
- Problem Solving
- Super-ordinate goals
- Expansion of resources
- Avoidance
- Smoothing
- Compromise
- Authoritative command
- Altering human variable
- Altering the structural variable

6. Organizational Relations and Dynamics

Organizational Design
Organizational Structure Model
- Mechanistic organization
- Organic organization

Organizational Structure elements

- Work specialization
- Departmentalization
- Chain of command
- Span of control
- Centralization and Decentralization
- Authority and responsibility

Organizational Structures

Simple Organizational Structure

- Low departmentalization
- Wide span of control
- High centralized authority
- Little formalization

Bureaucracy
- Highly routine operative task achieved through specialization
- High formalization
- Tasks are grouped into functional departments
- Centralized authority

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 - Narrow span of control
- Decision making follows chain of command
- Rigid rules and regulations
- Functional structure or Divisional Structure

Matrix structure
- Creates dual line of authority
- Incorporates functional and product departmentalization
- Facilitates efficient allocation of specialists
- Economies of scale by providing best resources and affective way of ensuring their efficient
deployment

Team Structure
- Use of teams as the central device to co-ordinate work activities
- No line of managerial authority exists
- Teams are free to design work in the way they think to be best
- They are responsible for all activity and outcomes

Virtual Organization
- Network or modular organization
- A small core organization that outsource major business function
- High degree of flexibility

Boundryless organization
- Seek to eliminate chain of command
- Have limitless span of control
- Replace departments with empowered teams
- Workers often work outside the physical boundary of employer’s premise

Organizational designs and employee behavior

- Not everyone prefer the freedom and flexibility of organic structure, some perform well and
prefer standardized and less ambiguous tasks
- It is felt that work specialization contributes to productivity but reduces job satisfaction.
However individual differences should be considered
- Some people like to be left alone while some enjoy security of Boss who is quickly available at all
times. Span of control should be decided accordingly
- Individual differences surface in centralization-decentralization issue. People with low self
esteem favor shared decision making
- To maximize employee performance and satisfaction individual differences, such as experience,
personality, and the work task needs to be considered.
- Selection procedure should properly match individual characteristics with organizational
characteristics

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 7. Technology and Work Design
Work Design Method
- Job specialization
- Job simplification
- Job rotation
- Job enlargement
- Job enrichment
- Autonomous teams

Theories of Work Design

Job Characteristics theory
- Experienced meaningfulness of work, experienced responsibility of work outcomes and
Knowledge of results
- Skill variety, task identity, task significance, autonomy and feedback
- Leads to
o High motivation
o High quality performance
o High job satisfaction
o Low absenteeism and turnover

Social Information processing theory

- Social information at workplace influences how employee perceive and react to job
characteristics
- Positive and negative social information

Technology and Work design

Continuous improvement process
- Continuous improvement of all organization process
- TQM is adopted
- Advocates continuous improvement of product quality through everyone’s commitment and
involvement to satisfy customer needs
- Results in lower cost and higher quality
- Uses PDCA (plan, do , check, act) cycle for incremental improvement
- Requirements:
o New technology
o Commitment from top
o Employee involvement
o Team effort

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 o Production methods
o Customer orientation
o Control
- Tools for TQM
o Zero defect
o Quality circle
o JIT
o Quality control
o Quality assurance
o Training

Re-engineering work process (BPR)

- Key elements
o Identify distinctive competencies
o Assess core process
o Horizontal reorganization
- Characteristics
o Seeks for radical change
o Process oriented not function oriented
o Highly IT dependent
o Very risky process
o Highly ambitious process

Flexible Manufacturing System (FMS)

- Computer controlled process technology suitable for producing moderate variety of products in
moderate quantity
- Contains several automated and programmable work stations each for different operations
- Characteristics
o Reduction in operating cost
o Lower direct labor cost
o Lower manufacturing cost
o Flexible
o Very high initial investment

Worker Obsolescence
- TQM, FMS, BPR, robotics, CAM, CIM etc are eliminating traditional low/semi skilled jobs and
demanding job that require skills and expertise
- Employees and managers who cannot upgrade themselves or keep up with changing trend
become obsolete
- Continuously upgrade oneself, learn hard and soft skills, enhance one’s learning and develop
one’s capacity

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 8. Stress management
- Person’s adaptive response to a stimulus that places excessive physical or psychological demand
on that person

Stress: Causes and Consequences

Environmental factors Individual Differences Physiological Symptoms

-Economic uncertainty -Perception -Headaches
-Political uncertainty -Job experience -High Blood pressure
-technological change -social support -Heart disease
-Belief in locus of control
-Self efficacy
Organizational factors -Hostility Psychological Symptoms
-Task Demand -Anxiety
-Role Demand -Depression
-Interpersonal demand -decrease in job satisfaction
Experienced Stress
Behavioral Symptoms
Personal factors
-Productivity
-Family problems
-Absenteeism
-Economic problems
-Turnover
-Personality

Stress Management
Individual Coping Strategies
- Exercise
- Relaxation
- Time management
- Role Management
- Support group

Organizational Coping Strategies

- Institutional programs
- Collateral programs

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