Organizational Behaviour Notes
Organizational Behaviour Notes
• Trait theory of leadership focuses on the idea that leaders are born with certain traits
that make them successful.
• It suggests that some people naturally possess qualities that enable them to lead
effectively.
• Key traits identified in this theory include self-confidence, intelligence, honesty,
ambition, and good communication skills.
• A self-confident leader trusts their abilities, while intelligence helps them solve
problems effectively. Honesty builds trust among followers, ambition drives them
toward achieving goals, and communication skills enable them to inspire and guide
others.
• The main advantage of this theory is that it helps identify potential leaders based on
their traits. However, it has limitations as it ignores the role of behavior, skills, and
situational factors in leadership.
• Not everyone with leadership traits becomes a good leader, and situational
demands often play a crucial role. Thus, while this theory highlights the importance
of innate qualities, it does not consider the complexities of leadership.
• Behavioral theory emphasizes that leadership is based on actions rather than inborn
traits. It suggests that anyone can become a good leader by learning the right
behaviors.
• The theory identifies two main leadership styles: task-oriented and people-oriented.
• Task-oriented leaders focus on completing tasks and achieving goals, while people-
oriented leaders prioritize the well-being of their team members by building trust
and motivation.
• Leadership can also be categorized as authoritative, democratic, or laissez-faire,
depending on how leaders interact with their teams.
• The advantage of this theory is that it shows leadership skills can be developed and
taught. However, it overlooks the influence of individual traits and situational
factors.
• This theory highlights that successful leadership depends on how leaders behave
and interact with their teams, making it a more flexible and practical approach than
trait theory.
• Contingency theory suggests that there is no single best way to lead; effective
leadership depends on the situation.
• This theory emphasizes that leaders must adapt their style based on team needs,
task requirements, and the environment.
• Fiedler’s Contingency Model highlights three key factors: leader-member relations
(trust between leader and team), task structure (clarity of tasks), and leader’s
authority (level of control the leader has).
• For example, a task-oriented leader works well when tasks are structured, while a
people-oriented leader is better in situations where relationships need
improvement.
• The strength of this theory lies in its flexibility, as it recognizes that leadership is
dynamic and situational. However, its limitation is that changing leadership styles
quickly or matching leaders to situations can be challenging.
• Overall, this theory provides a practical approach by highlighting the importance of
adapting leadership styles to achieve success in different scenarios.
1. Division of Work: Work should be divided among employees based on their skills
and expertise to increase efficiency and productivity.
2. Authority and Responsibility: Managers must have the authority to give orders, but
they must also take responsibility for the outcomes of their decisions.
3. Discipline: Discipline is essential for smooth functioning. Employees must follow
rules and respect authority, while managers must enforce rules fairly.
4. Unity of Command: Each employee should receive instructions from only one
superior to avoid confusion and conflict.
5. Unity of Direction: Activities with the same goal should be coordinated under one
plan and one leader to maintain focus.
6. Subordination of Individual Interest: Organizational goals must take priority over
individual interests. Everyone should work for the success of the company.
7. Remuneration: Employees should be fairly compensated for their work to maintain
satisfaction and motivation.
8. Centralization: Decision-making should be balanced between central authority (top
management) and delegation (lower levels).
9. Scalar Chain: There should be a clear chain of command, from top management to
the lowest level, to ensure proper communication.
10. Order: Resources and people should be in the right place at the right time to
maintain efficiency.
11. Equity: Managers must treat employees fairly and with respect to maintain a positive
work environment.
12. Stability of Tenure: Employees should have job security to develop skills and
perform their best. High turnover harms the organization.
13. Initiative: Employees should be encouraged to take initiative and contribute ideas to
improve processes.
14. Esprit de Corps: Teamwork and harmony among employees should be promoted to
create a sense of unity and belonging.
Max Weber, a German sociologist, developed the Bureaucracy Theory, which focuses on
creating an efficient and organized structure in organizations. According to him,
bureaucracy ensures fairness, consistency, and productivity in managing large
organizations or governments.
1. Clear Hierarchy:
Organizations should have a well-defined chain of command. Every employee knows their
superior and subordinates, ensuring smooth communication and control.
2. Division of Labor:
Work should be divided into specific tasks, and each employee should specialize in their
role to increase efficiency.
Organizations must follow strict rules and procedures to maintain uniformity and avoid
favoritism.
4. Impersonal Relationships:
Decisions should be based on rules and logic, not personal preferences or relationships,
ensuring fairness and professionalism.
Employees should be hired and promoted based on their skills, qualifications, and
performance rather than personal connections.
6. Formal Record-Keeping:
All decisions, rules, and operations should be documented properly for accountability and
future reference.
Advantages-
Disadvantages-
Work methods should be studied scientifically to identify the most efficient way of
performing a task, instead of relying on guesswork or traditional practices.
4. Development of Workers:
Employees should be trained and developed to improve their skills and productivity. Proper
selection and training ensure better performance.
5. Maximum Output:
The primary goal is to achieve higher productivity and profitability by eliminating waste and
optimizing resources.
1. Time and Motion Studies: Observing tasks to determine the most efficient way of
performing them.
2. Standardization: Setting standard procedures, tools, and equipment for tasks.
3. Differential Piece-Rate System: Paying workers based on their productivity to
motivate them to work harder.
Advantages-
These are the most basic human needs for survival, such as food, water, air, shelter, and
sleep. These needs must be satisfied first before any other needs can be addressed.
2. Safety Needs
Once physiological needs are met, individuals focus on safety and security. This includes
physical safety (freedom from violence or danger), financial security (job security, health
insurance), and emotional security (stable relationships).
After safety, people seek love, friendship, and a sense of belonging. These include
relationships with family, friends, romantic partners, and social groups. Humans are social
beings, and having meaningful connections is crucial.
4. Esteem Needs
Once social needs are fulfilled, people strive for self-esteem and recognition. This includes
feeling respected by others, achieving success, gaining recognition for one’s efforts, and
developing a sense of self-worth.
5. Self-Actualization
This is the highest level in Maslow’s hierarchy. It refers to realizing one’s full potential and
becoming the best version of oneself. Self-actualization involves creativity, problem-
solving, personal growth, and fulfilling personal goals.
Important Points-
• The hierarchy is usually represented as a pyramid, with the most basic needs at the
bottom and the highest needs at the top.
• According to Maslow, people cannot focus on higher-level needs until their basic
needs are satisfied.
• Not everyone may follow this exact sequence; some people may focus on higher
needs even if basic needs are not fully met.
The Job Characteristics Model was developed by Richard Hackman and Greg Oldham to
understand how certain job aspects affect employee motivation, satisfaction, and
performance. The model suggests that jobs can be designed in a way that enhances
employee motivation and leads to better outcomes for both the individual and the
organization.
1. Skill Variety
This refers to the degree to which a job requires different activities and skills. Jobs that
involve a variety of tasks keep employees engaged and interested, and allow them to use
their skills fully.
2. Task Identity
Task identity is the extent to which a job involves completing a whole and identifiable piece
of work, rather than just a small part of it. When employees can see the end result of their
efforts, they feel more accomplished and motivated.
3. Task Significance
This refers to the impact that a job has on others, either within the organization or outside
of it. Employees who feel their work is meaningful and contributes to a larger purpose are
generally more motivated.
4. Autonomy
Autonomy is the degree of freedom and independence an employee has in performing their
tasks. More autonomy means employees can make decisions and have control over their
work, leading to greater job satisfaction and motivation.
5. Feedback
Feedback refers to the extent to which employees receive clear information about their
performance. Regular and constructive feedback helps employees understand how well
they are doing and where they can improve, increasing motivation and job satisfaction.
For the Job Characteristics Model to work effectively, the job must create three
psychological states in the employee:
When jobs are designed to have high levels of the five core characteristics, it leads to:
• Higher motivation
• Better job satisfaction
• Increased performance
• Lower absenteeism and turnover
Stress management-
Stress management involves techniques and strategies to cope with and reduce stress.
Stress is a natural response to challenges, but excessive stress can harm your physical and
mental health. Learning how to manage stress effectively is important for overall well-
being.
Types of Stress-
1. Exercise
Physical activity helps reduce stress hormones and triggers the release of endorphins,
which are natural mood boosters. Regular exercise, such as walking, yoga, or swimming,
can improve both mental and physical health.
2. Relaxation Techniques
Relaxation exercises like deep breathing, progressive muscle relaxation, and meditation
help calm the mind and body. These techniques reduce the physical symptoms of stress
and promote a sense of peace.
3. Time Management
Poor time management can increase stress. Planning your day, prioritizing tasks, and
breaking them into smaller steps can help manage workloads and reduce feelings of being
overwhelmed.
Eating a balanced diet, getting enough sleep, and avoiding excessive caffeine or alcohol
can significantly reduce stress. A healthy lifestyle improves resilience and helps your body
handle stress more effectively.
5. Social Support
Talking to friends, family, or a therapist can help reduce stress. Having a support system
allows you to share your feelings, get advice, and feel understood, which can relieve
emotional stress.
6. Positive Thinking
Adopting a positive mindset can help reduce the perception of stress. Focusing on
solutions rather than problems, practicing gratitude, and staying optimistic can make
stressful situations seem more manageable.
7. Mindfulness
Mindfulness involves focusing on the present moment and accepting things as they are
without judgment. This practice can help reduce anxiety and stress by encouraging you to
live in the moment rather than worrying about the past or future.
Engaging in activities you enjoy, like reading, painting, or playing sports, helps take your
mind off stressors. It provides a break from daily pressures and brings joy and relaxation.
1. Breaks: Taking short breaks during work can refresh your mind and reduce mental
fatigue.
2. Delegate Tasks: Don’t hesitate to ask for help when needed. Sharing responsibilities
can reduce workload stress.
3. Set Boundaries: Learning to say no and setting clear boundaries can prevent feeling
overburdened by work demands.
Leadership is the ability to guide, influence, and inspire others to achieve goals. There are
various styles of leadership, but two widely discussed types are transformational
leadership and transactional leadership. Both have their unique features, and they can be
effective in different situations.
Transformational Leadership-
Transformational leaders inspire and motivate their team members with a clear vision of
the future. They communicate optimism and enthusiasm for the goals, which helps boost
morale and commitment.
2. Individualized Consideration:
They provide personalized attention to each follower, recognizing their individual needs,
strengths, and challenges. They mentor and coach their team members for personal
growth.
3. Intellectual Stimulation:
4. Idealized Influence:
Transactional Leadership-
1. Clear Expectations:
Transactional leaders set clear goals and define roles. They expect followers to meet these
goals in exchange for rewards (such as bonuses, promotions, or recognition) or avoid
punishments (such as reprimands or demotions).
2. Contingent Rewards:
They provide rewards or incentives to team members who meet or exceed the performance
expectations. This may include financial incentives, praise, or other tangible benefits.
3. Management by Exception:
Transactional leaders monitor performance closely and step in only when employees are
not meeting expectations or are making mistakes. There are two types:
Active: The leader actively looks for mistakes and takes corrective actions.
4. Focus on Efficiency:
These leaders aim to ensure that tasks are completed efficiently and that organizational
goals are met according to pre-set standards.
Communication can be classified into two main types: formal and informal. Both types
play essential roles in conveying messages and facilitating interaction in personal and
professional environments. Here’s an explanation of each:
Formal Communication
1. Structured: It follows specific rules and formats, such as memos, reports, emails, or
official meetings.
2. Official: This type of communication is used for business or professional purposes.
3. Clear and Precise: The message is clear and straightforward, with no room for
ambiguity.
4. Documentation: Often, formal communication is documented for record-keeping,
legal, or future reference.
5. Hierarchy: It typically flows through the organizational hierarchy, from higher-level
management to lower-level employees, or vice versa.
• Business meetings
• Official letters and emails
• Reports and memos
• Legal documents
• Job interviews
• Presentations
Informal Communication-
1. Spontaneous: It is more casual and occurs naturally, often without any planned
structure.
2. Flexible: It can happen anywhere, anytime, and among individuals, regardless of
hierarchy.
3. Personal: Informal communication allows for more emotional expression and
personal bonding.
4. No Documentation: There is usually no formal record of informal communication.
5. Fast and Direct: Messages can be exchanged quickly, making it efficient for rapid
discussions or casual chats.
Optimism-
Optimism refers to the tendency to expect positive outcomes and see the bright side of
situations, even in the face of adversity. Optimistic individuals believe that good things will
happen, and they tend to focus on solutions rather than problems.
Benefits of Optimism:
Emotional Intelligence-
Emotional Intelligence (EI) refers to the ability to recognize, understand, manage, and
influence emotions in oneself and others. It involves several key skills that contribute to
effective emotional and social functioning.
1. Self-awareness: The ability to recognize and understand your own emotions and
how they affect your thoughts and behavior.
2. Self-regulation: The ability to control or redirect disruptive emotions and impulses
and adapt to changing circumstances.
3. Motivation: The ability to set and achieve goals with energy and persistence, often
driven by a sense of purpose or passion.
4. Empathy: The ability to understand and share the feelings of others, making it easier
to build relationships.
5. Social skills: The ability to manage relationships and build networks, as well as
communicate effectively and resolve conflicts.
Power in an organizational context refers to the ability to influence others and control
resources, decisions, and actions. Power allows individuals or groups to have control over
situations, people, and outcomes within an organization. It plays a crucial role in
leadership, decision-making, and achieving organizational goals.
Types of Power:
1. Legitimate Power:
This power is based on a person’s formal position or authority within an organization.
People with legitimate power have the right to make decisions and give orders because of
their position, such as managers or executives.
2. Reward Power:
Reward power arises from the ability to provide rewards or incentives. This could include
salary increases, promotions, recognition, or other benefits that motivate others to comply
with their wishes.
3. Coercive Power:
Coercive power is based on the ability to punish others for non-compliance. It includes
actions like demotion, salary cuts, or even firing employees. This type of power is often
seen as negative and can lead to a toxic environment if misused.
4. Expert Power:
Expert power comes from possessing specialized knowledge, skills, or expertise that
others rely on. Individuals with expert power are seen as valuable due to their proficiency in
a specific area, and others may follow their advice or guidance.
5. Referent Power:
Referent power is based on personal traits, charisma, or the ability to build strong
relationships. People with referent power are admired, respected, or liked by others, and
their influence stems from the personal connection they have with their followers.
6. Informational Power:
Informational power comes from controlling the flow of information within an organization.
Those who possess exclusive access to important data or knowledge have the power to
influence decisions or actions based on that information.
Organizational Culture-
Organizational Culture refers to the shared values, beliefs, norms, and practices that shape
how employees behave within an organization. It influences how employees interact, how
decisions are made, and the overall work environment. Organizational culture is often
considered the “personality” of an organization, and it plays a key role in determining its
success.
Elements of Organizational Culture:
1. Values:
The core beliefs and principles that guide decision-making and behavior within an
organization, such as customer focus, innovation, or integrity.
2. Norms:
Unwritten rules or expectations that govern behavior within the organization. These norms
help employees understand what is acceptable and what is not.
The way people communicate within an organization, including specific jargon, tone, and
communication styles, which can reflect the organization’s culture.
6. Leadership Style:
The behavior and approach of leaders in the organization also shape and reflect the
culture. A supportive leadership style may foster a collaborative culture, while an
authoritative style might promote a more hierarchical culture.
1. Clan Culture:
2. Adhocracy Culture:
A culture that encourages risk-taking, innovation, and creativity. These organizations are
flexible, dynamic, and focus on being pioneers in their field.
3. Market Culture:
A results-oriented culture that focuses on competition, achievement, and goal attainment.
Companies with this culture emphasize meeting customer needs and beating competitors.
4. Hierarchy Culture:
A structured, formalized culture that prioritizes stability, control, and efficiency. These
organizations have clear policies, procedures, and expectations.
Politics in Organizations-
Politics in Organizations refers to the use of power, influence, and strategies to achieve
personal or professional goals, often in ways that are not part of official job roles or
responsibilities. Organizational politics can be both positive and negative, depending on
how it is used.
This involves using influence and power in a way that benefits the organization, such as
building alliances, negotiating effectively, or advocating for important initiatives. It’s about
making strategic decisions for the good of the organization.
1. Networking:
Building relationships with key people in the organization to gain influence and support for
your goals.
2. Coalition Building:
Forming alliances with others to increase influence and power, especially when tackling
common issues or initiatives.
3. Using Information Strategically:
Using compliments, praise, or praise for one’s superiors to gain favor and improve chances
of success.
5. Managing Perceptions:
Shaping how others perceive one’s actions, intentions, or performance to influence their
opinions or decisions.
Organizations should have a clear, written policy against sexual harassment. This policy
should define what constitutes sexual harassment and explain the steps employees should
take if they face harassment. It should also outline the consequences for those who
engage in such behavior.
2. Employee Training:
Regular training sessions should be held for all employees to educate them about sexual
harassment. This includes teaching them how to recognize inappropriate behavior, how to
report it, and the importance of respectful communication in the workplace.
Support systems should be in place for individuals who report harassment. This may
include counseling services, legal assistance, or other forms of support to help them feel
safe and supported.
Promote a culture of respect and equality where all employees, regardless of gender, feel
valued and safe. Leaders and managers should set a good example by modeling respectful
behavior in all interactions.
Organizations today face new trends and challenges that impact their functioning and the
work environment. These challenges are shaped by changes in technology, culture, and
employee expectations.
Key Trends:
1. Remote and Hybrid Work Models:
The rise of remote and hybrid work arrangements, especially after the COVID-19 pandemic,
has changed how organizations operate. Employees now work from various locations,
which can create challenges in maintaining team cohesion, communication, and
monitoring performance.
Organizations are increasingly focusing on diversity and inclusion to ensure that employees
from all backgrounds feel welcomed and valued. However, achieving true diversity and
inclusion requires addressing systemic biases and ensuring fair opportunities for all
employees.
3. Work-Life Balance:
Employees are now more focused on achieving a balance between their personal and
professional lives. Companies that offer flexible hours, mental health support, and other
benefits are more likely to attract and retain top talent.
4. Technological Advancements:
The use of artificial intelligence (AI), automation, and other technologies is reshaping
industries. While these advancements can lead to increased efficiency, they also create
challenges in terms of job displacement, skill gaps, and privacy concerns.
Mental health has become a major focus in organizations, with more companies offering
wellness programs, stress management resources, and promoting a healthy work
environment. Addressing mental health is crucial to improving employee productivity and
satisfaction.
Organizations are under growing pressure to adopt sustainable practices and demonstrate
social responsibility. This includes reducing their environmental footprint, supporting local
communities, and ensuring ethical business practices.
Key Challenges:
1. Managing Change:
As organizations adapt to new technologies, work models, and societal shifts, managing
change becomes a significant challenge. Leaders must guide employees through change
and minimize resistance.
As organizations rely more on digital platforms, the risk of cybersecurity breaches and data
privacy issues increases. Organizations must invest in robust security measures to protect
both their data and that of their employees.
With globalization and remote work, teams are now often spread across different countries
and cultures. Managing such teams requires an understanding of cultural differences,
effective communication strategies, and ensuring a sense of unity.
Organizations must navigate a complex web of legal and ethical challenges, especially in
areas like data protection, employee rights, and workplace discrimination. Compliance
with laws and ethical standards is essential to avoid lawsuits and maintain a positive
reputation.
Organizational Commitment-
1. Affective Commitment:
This type of commitment occurs when employees feel emotionally attached to the
organization. They believe in the organization’s values and goals and want to stay because
they identify with its mission.
2. Normative Commitment:
Normative commitment arises when employees feel obligated to stay with the
organization. This can stem from a sense of duty or loyalty to the company that has
invested in their growth and development.
3. Continuance Commitment:
This commitment is based on the costs associated with leaving the organization.
Employees may stay because they feel that leaving would result in a loss of benefits, such
as financial security, retirement plans, or career progression.
• Reduced Turnover: Employees with high organizational commitment are less likely
to leave the company.
• Increased Productivity: Committed employees are more motivated and engaged,
leading to better job performance.
• Positive Work Culture: High organizational commitment promotes a healthy,
collaborative, and motivated work environment.
1. Goal Setting:
The first step involves managers and employees collaboratively setting clear, specific, and
measurable objectives. These goals should be aligned with the company’s overall mission
and vision.
2. Action Plans:
Once the goals are set, employees develop action plans that outline how they will achieve
these goals, with clear timelines and resources.
3. Monitoring Progress:
Regular monitoring of the progress toward achieving the set goals is essential. This allows
managers to identify any obstacles and provide feedback or adjustments where needed.
4. Performance Evaluation:
At the end of the set period, performance is evaluated to determine whether the objectives
were met. This is followed by feedback, recognition, and planning for future objectives.
Benefits of MBO:
Challenges of MBO:
The movement highlighted that employees are not just workers but individuals with
emotions, social needs, and a desire for personal growth. It promoted the idea that
satisfying employees’ needs leads to increased productivity.
Researchers like Elton Mayo found that workers were more motivated and productive when
they felt valued, heard, and part of a supportive work environment. Recognizing employees’
needs and fostering positive relationships at work were seen as key to improving
performance.
Social interactions, peer relationships, and a sense of belonging within the team were
identified as significant factors affecting worker satisfaction and productivity.
Key Contributors:
Elton Mayo:
Mayo’s famous Hawthorne Studies found that workers’ productivity increased when they
felt that their needs and welfare were being considered, even if no direct financial incentive
was provided.
Abraham Maslow:
Maslow’s Hierarchy of Needs (which includes physiological, safety, social, esteem, and
self-actualization needs) was also a major influence on the Human Relations Movement.
The theory suggests that employees’ basic needs must be met before they can focus on
higher-order needs, including motivation and performance.
Impact of the Human Relations Movement:
Criticism:
• Some critics argue that while the Human Relations Movement focused on improving
morale and job satisfaction, it did not sufficiently address the structural and power-
related aspects of organizations.
• It also tended to focus more on the emotional well-being of workers rather than on
the overall operational efficiency of the organization.
Charismatic leader-
A charismatic leader inspires and motivates others through their personality, vision, and
energy. They often have strong communication skills, confidence, and the ability to
influence and engage followers. Charismatic leaders can create emotional connections,
fostering loyalty and enthusiasm, and driving significant organizational or societal change.