MGT 232: Leadership and

Organizational Behavior

Course Instructor
ANISH POUDEL
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 COURSE CONTENT

• Unit-I Introduction to Organizational Behavior 6 LHS

• Unit-II Perception and Learning 4 LHS

• Unit-III Personality and Job Satisfaction 4 LHS

• Unit-IV Organization Conflict and Stress 5 LHS

• Unit-V Introduction to Leadership 4 LHS

• Unit-VI Theories of Effective Leadership & Contemporary Leadership

Styles 7 LHS
• Unit-VII Leadership Development in Organization 2 LHS
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 Unit-I
Introduction to Organizational Behavior 6
LHS
• Concept of Organizational Behavior
• OB System
• Levels of OB Analysis
• Basic Assumptions
• Contributing Disciplines
• Emotions and Cognitive Dissonance
• Mental Process: Beliefs, Attitudes, Values, Needs,
Motives and Behavior
• New Challenges for manager in the field of OB
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Why OB?????
• To learn about yourself and how to deal
with others
• You are part of an organization now, and
will continue to be a part of various
organizations
• Organizations are increasingly expecting
individuals to be able to work in teams,
at least some of the time
• Some of you may want to be managers 4
“People are like
fingerprints,
unique in their
own ways.”

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Concept
• An organization is a collection of two or
more people working together to achieve a
common goal or set of goals
• Behavior is what an individual actually
does in a given environmental situation.
• OB is specifically concerned on work
related behavior

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Introduction to Organizational
Behavior
• OB is concerned with the emerging realities in
the work-place revolution.
• OB is the study and application of knowledge
about how people as individual or as groups act
within the organizations.
• It refers to the understanding, predicting and
controlling human behavior at work.

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Contd…
Organizational behavior (OB) is
the study of factors that affect
how individuals and groups act
in organizations and how
organizations manage their
environments.
• Organizational Behavior is the
study of human behavior in the
workplace, the interaction
between people and the
organization with the intent to
understand and predict human
behavior.
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Definitions
• Organizational behavior is the study and application at knowledge
about the how people- as individuals and a groups- act within
organization. It strives to identify ways in which people can act
more effectively.
-Keith Davis
• Organizational behavior is the study of what people think, feel,
and do in and around organizations.
-McShane and Glinow
• Organizational behavior can be defined as the understanding,
perception, and management of the human behavior affects the
performance of the organizations.
-Fred Luthans
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Conclusion
• Organizational behavior is a multidisciplinary
field of study that explains how individuals and
groups behave within organizations and how
their behavior influences the organization itself.
• It seeks to understand and explain various
aspects of human behavior as they relate to
work settings, and it often incorporates insights
from psychology, sociology, anthropology,
management theory, and other disciplines.
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Characteristics of OB
• Multidisciplinary: OB is a field that draws on theories and
concepts from various disciplines such as psychology,
sociology, anthropology, political science, economics, etc.
• Systematic: OB uses a systematic approach to understand
and analyze the behavior of individuals, groups, and
organizations. It analyses the relationships, attributes, causes
and effects, and draws conclusions based on true evidence.
• Goal-oriented: OB aims to improve organizational
effectiveness and employee well-being by identifying and
addressing problems related to behavior, communication,
motivation, and leadership.

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Contd…
• Humanistic: OB takes a humanistic approach to
understanding behavior, emphasizing the importance of
individual differences, diversity, and human needs and
values.
• Dynamic: OB recognizes that behavior is constantly
changing and evolving in response to various internal
and external factors.
• Practical: OB seeks to provide practical solutions to
real-world problems faced by organizations, including
improving employee satisfaction, motivation, and
productivity.
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OB System
• A system is a group of interrelated parts acting together to
accomplish a goal.
• All systems are composed of four basic elements;
• Input,
• Process,
• Output and
• Feedback
• These activities are affected by changing environment of
the society.
• OB system helps to understand and predict organizational
events.
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• It helps managers to plan and control human behavior
 Organizational Behavior System
Input Processing Outputs
Individual Level
Individual Level
• Personal Features • Productivity
• Motivation
• Personality • Citizenship
• Perception
• Values • Job Satisfaction
• Learning
• Ability • Absenteeism
• Decision Making
• Emotion • Turnover
• Attitude, etc.
Group Level
Group Level
• Communication
• Size
• Leadership & Trust
• Composition
• Conflict
• Role
• Power & Politics
• Status
• Team Work, etc.
• Norms
• Cohesiveness, etc Organizational Level
Organizational Level • HR Policies & Practices
• Structure • Work Design
• Culture • Working Technology

Feedback
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Input
• OB system starts from inputs. The inputs to OB system consists of
• Individual input: Individual input are person-specific. The actions,
behaviors, and attitudes of individual employees within an organization are
individual input. This includes factors such as personality traits, motivation,
values, and perceptions, all of which can impact how an individual
approaches their work and interacts with others.
• Group input: It refers to the dynamics and interactions between groups of
individuals within an organization. This includes factors such as group norms,
communication patterns, leadership styles, and decision-making processes,
which can impact the overall effectiveness and productivity of the group.
• Organizational input: It refers to the broader systems and structures within
an organization that influence individual and group behavior. This includes
factors such as organizational culture, formal policies and procedures,
reward systems, and the physical environment in which employees work.

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Processing/ Transformation
Process
• The inputs received by the individuals, groups and organization as a whole
are processed together to bring the output.
• Individual processing: It refers to the mental processes and behavior of an
individual employee within an organization. This includes their perceptions,
attitudes, motivation, decision-making, and problem-solving abilities, as well
as their emotional responses to situations and events.
• Group processing: It refers to the dynamics and interactions that occur
within a group of employees. This includes communication, cooperation,
conflict resolution, and decision-making processes.
• Organizational processing: It refers to the broader systems and structures
that exist within an organization. This includes organizational culture,
policies, procedures, and structures, as well as reward systems and the
physical environment in which employees work. Organizational processing
can shape the behavior and performance of employees and influence the
overall effectiveness of the organization.
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Output
• They are the result of the overall processes which are dependent of other
processes. They are concerned with organizational effectiveness.
• Productivity:- is the relationship between input and output. It implies
higher performance through increased efforts. Happy employees are
productive employees.
• Job satisfaction:- positive feelings towards job. It represents an attitude
rather than behavior.
• Absenteeism:- is the failure to report to work. High degree of employees
absenteeism may result poor organizational performance.
• Turnover:- is the voluntary and involuntary permanent withdrawal from
an organization.
• Organizational citizenship:- is the development of feeling of
belongingness and membership among the employees in the organization.
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Feedback
• The feedback system measures outputs of OB
process and feed into the system (input/process)
to correct deviations and to achieve the desired
behavioral results.
• It provides information to redesign OB inputs
and processing to achieve the desired
behavioral consequences.

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Individual Level (Micro Level/
Inter-personal Level)
• At this level, OB analyzes about the individuals working in an
organization. It studies about the individual’s behavior, attitudes,
values, beliefs, job satisfaction, ethics, learning, motivation, etc.
• All these factors will influence individual behavior at work.
• At this level, the characteristics of individuals are analyzed, their
perception is understood and finally they are motivated.
• At this level of analysis, organizational behavior draws heavily
upon psychology.
•This level analyses the individual’s performance in the company’s
output.
• This way, OB can find out whether the employee is good for the
company or not.
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Group Level (Meso Level/
Inter-group Analysis)
• Individuals work in a group.
• A group is defined as the collection of two or more
individuals who share their common values and have a
common goal.
• Groups can be formal or informal.
• This level analysis focuses on how people interact, cooperate
and coordinate with each other to achieve common goals.
• Major contributing disciplines at this level are sociology,
social psychology and anthropology.
• This level includes leadership, communication, conflict,
power, organization politics etc.
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Organizational Level (Macro
Level)
• Organization includes collection of groups.
• Major contributing disciplines at this level are sociology,
anthropology, and political science.
• The basic focus is given on how people structure their working
relationships and how organization interact with its external
environmental forces.
• Major variables for analysis are organization structure, culture,
power and politics, change and development etc.
These three levels are inter-related. Group level cannot be
formed without individual level and organizational level is
formed on the foundation of individual level and group level
analysis.
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Foundations/Basic Assumptions
of OB
• Organizational behavior is a field of study that
investigates the impact that individuals, groups and
organizational structure have on behavior within the
organization, for the purpose of applying such
knowledge towards improving an organizational
effectiveness.
• The basic assumptions of OB are:
A. Assumptions about the nature of people
B. Assumptions about the nature of organization

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Foundations/Basic Assumptions
of OB
Basic Assumption of OB

The Nature of People The Nature of Organization

 Individual Differences  Social System

 A Whole Person  Mutuality of Interest
 Motivated Behavior  Ethical Treatment
 Value of the Person
 Selective Perception
 Desire for Involvement

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A. Assumptions about the Nature
of People
• Every organization is run by people. People consist of many
individuals and groups.
• People have much in common (they become happy by having gains
and sad by losing something valuable), yet they differ from each
other.
• All the individuals have separate traits and quality. They are
guided by their special features.
• Individual differences: There are different individuals working
in an organization. These individuals are psychologically different
from each other in terms of behavior, values, attitudes, personality,
skills etc. Managers must understand these differences to lead
them, supervise them and motivate them in a proper manner.

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Contd…
• A whole person: Every person working in an
organization has their own feelings, emotions,
sentiments etc. These people have their own work life
and personal life. These two lives are interrelated with
each other. Managers must try to develop the all-round
aspect of a person rather than an individual aspect.
• Caused behavior (Motivation): Psychologists always
say that human behavior is caused by their own needs.
Managers must understand these needs and try to
motivate the people according to their needs. They
must understand what managerial action can satisfy
human needs and what actions can threaten their need27
Contd…
• Value of the person (human dignity): People
working in an organization have their own emotions,
sentiments, values etc. An organization must
understand it, treat them with respect, dignity and
equity. They cannot be treated like other resources as
financial, physical or informational.
• Selective perception: People are unique and different
from each other. They perceive same thing differently.
They have a unique way to see, organize and interpret
things. Managers must learn to except perceptual
differences among employees, accept the employees as
emotional beings and mange them in different ways. 28
Contd…
• Desire for involvement: Today’s employees have
desire for involvement in work. They want to show
their creativity, skills and efficiency while performing a
task. They expect independency, face challenges and
take credit on the successful completion of work. They
want to show what they know and learn from the
experiences. So, managers need to understand skills
and ability of each employee. And based on their
capability it is essential to provide opportunity to
participate in planning and decision making.

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B. Assumptions about Nature of
Organization
• Social system: Organization is taken as a part of larger
social system. They work as an open system that is linked
with the external environment. There are different people
working in an organization that have different needs, enjoy
different status and play different roles. They all have a
common goal and their behavior is influenced by the
organizational goals.
• Mutual interest: Both organization and people have their
own mutual interest. Organizations depend upon the people
and people depend over the organizations. People want to
satisfy their personal goals from the organization and
organization wants to satisfy its goals from the people.
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Contd…
• Ethical treatment: Ethics is the set of moral
principles and rules guiding individual behavior.
Organization must treat employees in an ethical
manner to succeed. Organizations should establish
code of ethics, provide ethics training and reward the
employees for notable ethical behavior. It helps to
facilitate and maintain prestige, image and reputation
of the organization in the society.

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Contributing Disciplines to the Field
of OB
OB is contributed by a number of behavioral
disciplines. The major contributors are as follows
• Psychology.
• Sociology
• Social psychology
• Anthropology
• Political science
• Economics
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 Contd…
Psychology:
Psychology is the
science of human
and animal
behavior. It studies
about the human
thoughts and the
changes in their
behavior. It makes a
micro/individual
level analysis. The
study of psychology 33
 Contd…
Sociology:
Sociology is the
study of people and
the effect of society,
culture and social
institutions on the
people. It is the
second most
important
contributor to the
field of OB. It’s
major contribution 34
 Contd…
Social psychology:
It is the scientific
study of how the
social interactions
and social
interdependence
affect the behavior
of people. This
concept is a blend of
sociology and
psychology and it 35
 Contd…
Anthropology: It
is the study of
human behavior
due to the culture.
It affects the
group level and
organizational
level in an
organization. It
contributes on the
proper 36
Contd…
Political science: Political science studies
about the political behavior of employees at
work. It is the study of power and politics of
people in government and outside the
government. It helps to understand the
authority, conflict, power, organization politics
etc. and it affects the organizational level.

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Contd…
Economics: Economics is the study of
production, distribution and consumption of
goods and services. The topics of economics as
labor market dynamics, productivity analysis,
HRP and forecasting and cost benefit analysis
are useful in the study of OB.
Industrial engineering: This area of study is
mainly concerned with productivity issues in
organizations. Topics like work measurement,
work-flow analysis and design, job design and38
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Critical Behavioral Issues
Confronting the Managers /
New Challenges for Managers in OB/
Challenges and Opportunities
• The world has changed a lot in few decades. Today
for OB
managers are facing a number of behavioral issues
and challenges in their organizations. Some
important changes in work places recently seen are
fast changing employee expectations, declining
loyalty towards working organizations, increasing
numbers of women, old aged employees, and
minorities among others.
• Globalization
• Workforce diversity
• Quality and productivity
• Improving people skills
• Employee empowerment
• Managing organization change
• Ethics
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Contd…
• Globalization: Globalization is the process of making the goods and
services available to the whole world. The extent of globalization causes
both opportunities and threats to the managers. Managers face challenges
as adopting new technology, organizational change, organization
restructuring, downsizing etc. and they face opportunities as low cost
advantage, transfer of skills and technology, new career perspective etc.
• Workforce diversity: There are different people working in an
organization. These people are different from each other in terms of
culture, values, education, training, races, religion etc. This heterogeneity
seen in the workforce is called workforce diversity. The workforce diversity
is increasing in this modern world. If workforce diversity is managed
properly then it can increase creativity and innovation but if it cannot be
managed properly then problems like employee turnover, low satisfaction,
lesser commitment etc. can increase.

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Contd…
• Quality and productivity: Quality simply means ‘freedom from defects’
and productivity means capacity to produce. Now a day, due to the cause
of rapid globalization, an organization must increase the productivity (to
lower costs) and also increase the quality of goods (to be competitive).
This is a big challenge for the mangers. If this challenge is tackled then
an organization will get a large market and earn customer loyalty.
• Improving people skills: The competition in the modern world has
totally changed the organizational structure. Now a days, organizations
focus more on decentralization, team work, participative management,
increased automation etc. They focus on improving the HR skills through
training and management development programs. Improving people’s
skills is a big challenge for the managers whereas this is also an
opportunity to be more competitive.

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Contd…
• Employee empowerment: Previously, organizations were following
the theory of bureaucracy. The employees were under the tight control
of the managers. Now a day, organizations follow contingency theory.
Leaders just work as coaches, advisors, and facilitators. Decision
making is pushed down to the operating level. This trend has developed
a concept of self-managed work teams, quality circles, job enrichment,
MBO etc.
• Managing organization change: An alteration from the current state
to the desired state is called change. Nothing is certain in this world
except the change. An organization must be flexible enough to cope
with the change. Organization adopts different programs like
restructuring, downsizing, outsourcing etc. to cope with the change.
The study of OB helps to overcome the resistance to change, and to
develop an organization culture that can cope with the change.
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Contd…
• Ethics: Ethics are individual’s personal belief about
something to be right or wrong. People are focusing
more and more on ethical behavior. This is increasing
ethical dilemma for the workers because ethics for one
organization and one place may not be ethical for
another organization and another place. Managers
distribute the written code of ethics to guide employees
through ethical dilemmas.

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Emerging Trends in OB
• Open system
• Human orientation
• Distributed power
• Intrinsic motivation
• Balanced focus
• Self-discipline
• Leadership and team support

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Contd…
• Open system: There are two types of system as open and closed.
Open system is linked with the external environment and closed
system is not linked with the external environment. Previously,
organizations were operating in closed system. They had rigid
rules and regulations, codes of conduct, rigid structure etc. Now a
day, this concept has changed. Organizations are being changed
with the change in external environment.
• Human orientation: Previously, managers just viewed employees
as economic beings. They thought that employees will be satisfied
if more financial rewards are offered. Now a day, this concept has
totally changed. Managers also emphasize on people’s needs,
wants and desires. They treat employees as the most important
resources for the organization.
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Contd…
• Distributed power: Previously, organizations used to
follow the concept of centralization. Decision making
authority was centralized on the hands of top level
managers only. Now a day, managers are decentralizing
and delegating their authority to the lower level employees.
This has empowered the employees and improved their
participation too.
• Intrinsic motivation: Previously, managers focused more
on extrinsic motivation only i.e. visible. For example salary,
bonus, job security, supervision etc. Now a day, they are
focusing more on motivating factors (intrinsic motivation)
as achievement, recognition, self-fulfillment etc.
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Contd…
• Balanced focus: Previously, organizations only cared about
their goals, objectives, results etc. and neglected the objectives,
needs and feeling of the employees. Now a day, organization
tries to fulfill the employee’s needs, motivate them and finally try
to fulfill their goals. This has developed a concept of balanced
focus between the organization goals and employee goals.
• Self-discipline: Disciplines are the code of behavior at work
place. Traditionally, managers used strict rules and regulations
to control the behavior of employees. This only caused short
term benefits but caused a serious problem in long term. Now a
day, managers are focusing more on self-discipline. This can be
created when employee commitment and their loyalty is
increased.
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Contd…
• Leadership and team support: Previously,
authoritarian leadership style was used by the
managers. This resulted in low motivation, low
performance and lower commitment. Now a day,
managers are following participative leadership
approach and building team structure. This has
increased commitment, performance and job
satisfaction.

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 Behavior

Person Environment
1. Personal biographical factors 1. Environmental Factor
a. Gender, Age, Martial Status. a. Cultural Values, Social Norms
b. Education, Abilities etc. b. Political and Economical Conditions
2. Psychological factors 2. Organizational Factors
a. Personality c. Attitudes e. Learning a. Organizational Structure c. Leadership style
b. Perception d. Values b. Organizational Design d. Reward system

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Individual Behavior
• Anything that a person or animal does that can be observed,
recorded, and studied is called behavior. Human behavior is
caused, motivated and goal directed. Kurt Lewin, a human
psychologist conducted a research to find out that human
behavior is caused by genetic factors and environmental
factors.
According to him, B= f (P, E)
Where ‘B’ is the function of Person (P) and Environment (E)
• Personal factors include age, sex, education, personality,
perception, attitudes, values etc. and environmental factors
include economic conditions, political situations, social norms,
organizational structure, reward system etc.
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Individual Behavior as an Input-
Output System
Exhibit 1.6 Individual Behavior as an Input-Output System

Input: Stimulus(S) Processing: Organism (O) Output: Behavior (B)

Internal stimuli Physiological: Sensation  Productivity

 Personal character  Absenteeism
 Personality  Turnover
 Emotion Cognitive  J ob satisfaction
 Values  Perception
 Beliefs  Organizational citizenship
 Thinking
 Attitudes  Individual decision making
 Ability

External stimuli
Information from external Psychological
environment through senses:  Leaning
hearing, seeing, smelling,  Motivation
touching and tasting

Feedback
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Inputs
• In the form of inputs individuals receive information from
environmental stimuli by using senses. Stimuli involve forces that
provide impact on human senses.
• Environmental stimuli may be internal and external. Internal stimuli
are the forces inherited with the individual whereas external stimuli
are the forces received from social factors.
• When individuals receive information from environment in term of
inputs they started to show behavior. It provides impact on their
performance and behavior.
Internal stimuli: They provide impact on individual behavior and
reaction. Such forces involve personal characteristics, personality,
emotion, value, beliefs, attitudes and ability of individual.
External stimuli: The external environmental forces involve physical
and socio-cultural forces. Physical forces involve organizational 53
climate, office environment, working condition, etc. whereas socio-
Processing
• It is the interpretation part of individual behavior. It shows how an
individual receives information from external forces, understand
and predict them.
• When an individual receives information from environment in
terms of inputs, he tries to make detail study of such information
for proper response.
• It mediates between inputs and outputs of individual behavior. It
consists of three elements: physiological processes, cognitive
processes, and psychological processes.
a. Physiological processes: They are parental and heredity in
nature. They are the biological foundation of individual behavior.
They are related to nervous system and sense organs.
b. Cognitive processes: Cognition is an act of knowing and
understanding information received from external forces. 54
Outputs
• Outputs are the behavioral responses of individual
behavior.
• They are the outcome of inputs and processing components
of individual behavior.
• It means when individual receives information from
environmental stimuli, he does detail analysis of such
information through physiological, cognitive and
psychological process and finally gives response in term of
behavior.
• Generally, individual shows behavior in terms of covert or
overt.
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Feedback
• Individual behavior is a continuous process up to the
functioning and existence of the organization.
• Therefore, it is necessary to evaluate the outcomes of
individual behavior process.
• If expected output is gained it would provide guidance
to the manager for future performance.
• Similarly, if any deficiency is found in output it would
be necessary to improve future performance to gain
expected outcomes.
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Mental Process
• Mental processes (also called mental functions) are terms often
used interchangeably for all the things that individuals can do
with their minds.
• These include beliefs, perception, memory, thinking such as
ideation, imagination, reasoning, emotion, etc. Sometimes the
term cognitive function is used instead.
• Mental process encompasses all the things that the human mind
can do naturally.
• Since the human mind is constantly active, mental processes are
continuously relevant and affecting or in taking events from
daily life.
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Determinants of Behavior
• Beliefs
• Attitudes
• Values
Beliefs Attitudes Values
• Needs
• Motives & behavior
• Sensation
• Emotions
• Cognitive Emotions
dissonance
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59
Beliefs
• Beliefs are the descriptive thoughts that an individual holds about
something.
• They can be based on knowledge, opinion and faith.
• They are acquired from parents, teachers, peers and reference
groups.
• It is an internal feeling that something is true, even though that
may be unproven or irrational.
• Belief shape our values, impact our emotions and motivates
behavior.
• According to Krech and Crutchfied “belief is an enduring
organization of perception and cognitions about some aspect of
the individual world”.
60
How are beliefs formed ?
• Past experience: If all the students taught by a
teacher have passed in the previous semester, the
next batch may believe that they will also get
passed. This is based on the past experience.
• Available information: If people have some
amount of available information, then this may
change what they believe. Previously, people used
to think that huge iron masses can never fly but
after ‘Right brothers’ discovered a plane, their
belief changed.
• Generalization: if employee works more than 61
Importance of Beliefs
• Beliefs direct and control
individual’s behavior.
• Beliefs develop person’s
attitudes.
• Beliefs provide continuity to the
personality of an individual.
• Beliefs assign meaning to day-
to-day perceptions and activities
of individuals.
• An individual’s beliefs exert
vital impact on motivation.
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Limitations of Beliefs
• Create conflict: individuals having different cultural values and beliefs
working together
• Difficult to adapt: individuals having stereotype or rigid beliefs are
difficult to adapt in changing environment of the society
• Impractical behavior: some individuals may have superstition or illusion
type of beliefs
• Difficult to coordinate: individuals having different types of beliefs
work together in an organization, it becomes difficult to coordinate their
activities
• Intolerance of beliefs: individuals having different types of beliefs
working together for achieving common goals
• Problems for uniformity: divergent beliefs among workforce can create
problems for smoothness and uniformity in organizational performance
63
Attitudes
"Your attitude determines your altitude."

• "Positive attitude people find solution in every problem but negative

attitude person find problem in every solution."
• Attitudes are evaluative statement or judgments concerning objects,
people or events.
• It refers to the way a person feels about any object. The object can
be in the form of specific person, a group of people, abstract entity
(business) etc.
• Attitudes are different from one person to another and they affect
over the individual behavior.
• Attitudes describe about individuals background and experiences.
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65
Features of Attitudes
• An attitude describes whether the object is favorable
or unfavorable to the individual.
• People may have different attitudes about different
topics that are related to them
• Attitude is neither a behavior nor a cause of behavior
but it is an intervening factor
• Attitudes can vary according to the needs of a person
• They are less stable and may change according to the
situation

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Components of Attitudes
An attitude consists of three components. All of these components don’t
exist and function separately. For example, I like to read novels. I am
expressing my attitude toward reading novels.
• Cognitive component: It represents the beliefs, opinions, knowledge
or information held by the individual. For example: “Child labor is
bad”, “Smoking is injurious to health”. “I’m scared of spiders”.
• An affective component: An affective component represents about
the feelings, sentiments, mood and emotions about some person, idea,
event or object. For example, I don’t like Ram because he uses child
labor in his garment industry. “I believe spiders are dangerous”.
• Behavioral component: It refers an intention to behave in a certain
way toward someone or something. It can be directly observed. For
example, I begin to avoid Ram in our circle due to my affective
component. “I will avoid spiders and scream if I see one.”
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68
69
Types of Job Related Attitude
• Attitude is very important in an organization because it directly affects the job
behavior. There can be thousands of attitudes but there are few job related
attitudes. Actually job related attitudes are the positive and negative evaluation of
employees about their work environment. The research on OB concluded that
there are three basic types of job related attitudes as follows:
• Job satisfaction: Job satisfaction refers to the collection of feelings that an
individual holds toward his or her job. A person with high level of job satisfaction
holds positive feeling toward his job and he holds negative feeling toward his job
if he has low level of job satisfaction
• Job involvement: It is a degree to which a person identifies with his or her job,
actively participates in it and considers his/her performance importance to self-
worth. Employee with high level of job involvement strongly identifies himself
with the job and his chances of absenteeism and turnover will be very low.
• Organizational commitment: It defines as a state in which an employee
identifies themselves with a particular organization and wishes to maintain
membership in the organization. It reflects an individual’s attachment to
70 the
Attitude Formation/
Determinants
• There is always a controversy about the formation of attitudes
but most of the research concludes that the attitudes are formed
by learning. Attitudes are basically formed from the following
factors.
• Past experience
• Family
• Peer groups
• Society
• Personality factors
Shakespeare---
• Environmental factors “one might smile
• Media and smile and yet
• Educational institutions be a VILLIAN”. 71
Contd…
• Past experience: Attitudes can be formed from the past
experience of a person. For example, a teacher taught the
students very nicely in the previous semester. He again
came back to teach them in the next semester. The students
will show positive attitude toward him but in the reverse
situation they will have negative attitude toward him.
• Family: Attitude is primarily formed by the family
especially form the direction of mother and father. For
example, a family always told a child that vegetarian is very
good and one should not eat meat. The baby will gradually
develop negative attitude toward meat and he will not eat
it.
72
Contd…
• Peer groups: The group of friends made by a person in his work, class etc.
are called peer groups. The peer groups will always affect over the behavior
of a person. For example, Ram is in such a group in which all the members
except Ram drink cigarettes. Ram can also slowly develop positive attitude
toward cigarettes and may even end in drinking it.
• Society: Society is the heterogeneous mixture of people with different
culture, religion, education etc. The culture, language and the structure of
the society, all provide an individual with the boundaries of his initial
attitudes. For example, a person living in a Hindu society doesn’t consume
beef while a person living in Muslim society will have negative attitude
toward pork.
• Personality factors: There are different factors that affect over the
personality of an individual as biological factors, environmental factors and
situational factors. All these factors directly affect over the attitude of a
person.
73
Contd…
• Environmental factors: It involves political, economic,
socio-cultural, technological, competitors, etc. These
environmental factors change the way of thinking and the
attitude of an individual.
• Media: Media as a means of communication such as
television, radio, email and internet have major influence in
shaping people's opinion and beliefs. These information is the
foundation for the emergence of mental attitudes towards it.
• Educational institutions: It has a strong influence in
shaping the attitudes. They lay the foundation of
understanding and moral concepts within the individual.

74
Importance of Attitude
• It determines job satisfaction and high level of job
performance.
• It facilitates to maximize productivity.
• It encourage for expressing value and honor to others.
• It gives rise to positive and constructive feeling.
• It helps individuals to adapt with their working
environment.
• Individuals having favorable judgment consider
different events differently.

75
Values
• The word value comes form the French verb valoir,
meaning ‘to be worth’.
• Values are the basic convictions of an individual as to what
is right, good or desirable.
• American Heritage Concise Dictionary (1994) defines a
value as “ a principle standard or quality considered
worthwhile or desirable”.
• According to A. Das Gupta ‘value is a framework of
personal philosophy which governs and influences
individual’s reactions and responses to any situations.’
• They have a judgment element.
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Values
• Values have major influence on a person’s behavior and attitude and
serve as broad guidelines in all situations. Some common
business values are fairness, innovation and community involvement.
• Values are relatively permanent and enduring. Some of the values are
gifts from the heredity while others are learnt by the social members.
• Values are one of the sources of individual differences and affect the
individual behavior.
• On an individual level, values represent the emotional barometer
against which we measure the worth of our lives.
• In organizational terms, values represent “deeply held views of what
we [as members of the organization] find worthwhile”

77
78
Types of Values
A. Two level
classification B. Seven level
• Terminal Values classification
• Instrumental Values • Reactive
• Tribalistic
• Egocentrism
• Conformity
• Manipulative
• Sociocentric
• Existential
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A. Two Level Classification
This approach is based on Milton Rokeach’s Values
Survey (RVS).
• Terminal Values refers to the desirable end states
or the goals that a person would like to achieve
during his/her lifetime. It include things like
happiness, self respect, family security, recognition,
freedom, inner harmony, comfortable life,
profession
• Instrumental Values refer to preferable modes of
behavior or means of achieving the terminal values.
It include values like honesty, sincerity, ambition, 80
81
B. Seven Level Classification
This classification is based on research of C.W. Graves. The
seven types of values are as follows (1 denotes lowest level
and 7 denotes the highest level of values):
1. Reactive: Aware of oneself and others as human beings,
react to basic physiological needs
2. Tribalistic: High degree of dependence; strongly
influenced by tradition and the power exercised by
authority figures; wants strong directive leadership
3. Egocentrism: Believes in rugged individualism;
aggressive and selfish; responds to primarily to power;
desire individual responsibilities; wants to work as loner in
an entrepreneurial style
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B. Seven Level Classification
4. Conformity: Low tolerance for ambiguity; difficulty in accepting
people with divergent values; desires that other accept these
values
5. Manipulative: Strive to accomplish goals by manipulating things
and people; materialistic; seeks status & recognition actively
6. Sociocentric: Desires to be liked and get along with others
status than getting ahead; dislikes materialism; manipulation and
conformity; seeks primarily the social relationship which a job
provides
7. Existential: High tolerance for ambiguity and for people with
divergent values; outspoken on flexible systems, restrictive
policies, status symbols and arbiter use of authority; seeks full
expression of growth and self-fulfillment needs through work.
83
Determinants/Formation of Values
• Family
• Peer groups
• Society
• Associations
• Experience
• Personality
• Environmental factors

84
Importance of Values
• It influences perception of individuals.
• They are the foundation for understanding
attitudes.
• It influences motivation of an individual.
• It influences behavior.
• Matching of individual differences in values with
proper work environment improves
performance.
85
Cross- Culture Values
Geert Hofstede, a social scientist, studied over 116,000 IBM employees in forty countries about their
work-related values. His results show that differences occurred across cultures in four basic dimensions
of work-related values and behavior:
1. Power distance is the extent to which an unequal distribution of power is accepted by society
members
High power distance: Mexico, Argentina, France, etc.
Low power distance: USA, Canada, Japan, Germany, etc.
2. Uncertainty avoider Uncertainty avoidance is the extent to which people are uncomfortable with
uncertain and ambiguous situations.
Strong uncertainty avoidance: USA, Canada, Hong Kong, etc.
Weak uncertainty avoidance: Japan, Iran, India, etc.
3. Individualism or collectivism Individualistic cultures stress independence, individual initiative
and privacy. Collective cultures favor interdependence and loyalty to family or society.
Individualism culture: US, Canada, Australia, etc.
4. Masculinity or Femininity More masculine cultures clearly differentiate gender roles, support the
dominance of men, and stress economic performance. More feminine culture accept equal gender roles,
focus gender equality and emphasize quality of life.
Masculinity culture: India, Japan, Italy, etc.
Femininity culture: Sweden, Norway, Holland, etc. 86
Needs
• A need can be simply defined as a state of felt deprivation.
• According to Kolasa, “a need is a lack or deficit of something within a
system or organism.
• Need can be defined in one word as deficiency and they are created by the
physiological and psychological imbalance.
• According to the Maslow hierarchy of needs theory, the first one (food,
shelter and cloth) is causes physiological imbalance while the other four
causes psychological imbalance.
• An unsatisfied need creates tension to a person and stimulates drive within
the individual. These drives generate search behavior to find particular
goals that, if attained, will satisfy the need and lead to the reduction of
tension.
• Different people have different desire for needs. These needs can be broadly
classified into two types as follows:
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Needs
• Primary needs: They are the basic need that are
essential for an individual for the survival as food,
shelter, clothes, rest and water. The deficiency of such
needs cause physiological imbalance in the individual.
• Secondary needs: These needs are essential to fulfill
the psychological requirements of a person. Such needs
are not essential for survival and they are learnt from
the environment and culture in which the person lives.
Examples include social needs, security needs, esteem
or ego needs and self- actualization needs. The
deficiency of such needs cause psychological imbalance.
88
Motives
• A motive is a person’s reason for choosing one behavior
from among several choices.
• According to Moorhead and Griffin, “a motive is a factor
that determines a person’s choice of one course of
behavior from among several possibilities.”
• Motives are always derived from needs.
• For example, Ram decided to take a lunch to satisfy a
need for food. He can either go to ‘Nepali Dhaba’
because it is cheap, or he can go to the Chinese kitchen
because he loves spicy food. Besides, he can even go to
the café because he wants quick food. The reasons as
‘cheap’, ‘spicy’ and ‘quick food’ are the motives for Ram
to choose a behavior of eating. 89
Motives
. These are the types of motives:
1. Primary motives: Primary motives are absolutely essential for
a person to satisfy. They are the basic needs of an individual that
are essential for everybody. Examples: food, shelter, cloths, sleep,
rest, etc.
2. Secondary motives: When individuals are satisfied with
primary motives, they move on to the secondary motives.
Secondary motives are taken into consideration where primary
motives and basic necessities are no longer an issue. Example:
power, achievement, security, social affiliation, status, prestige, etc.
3. General motives: General motives are neither falls in the
primary category nor in the secondary one. They are kind of in the
middle of primary and secondary motives. General motives consists
of two types: curiosity motive and affection motive.
90
Emotions
• Emotion is derived from the Latin word ‘Emovere’ which means to
mobilize or excite.
• Emotions are intense feelings directed at object, person or event.
• Emotions are feelings that occur and profoundly in response to an
event that is desired or undesired.
• Emotions disturbs the physical and psychological state of an
individual.
• According to P.T. Young, “Emotion is an acute disturbance of the
individual as a whole psychological in origin, involving behavior,
conscious experience and visceral functioning.”
• Emotions are not consciously controlled.

91
Emotions
• Emotions are not consciously controlled.
• Emotions are strongly linked to memory and experience. If
something bad has previously happened to you, your emotional
response to the same stimulus is likely to be strong.
• Emotions are also closely linked to values: an emotional
response could tell you that one of your key values has been
challenged.
Thoughts + Body Sensations = Emotion
The following are the common features of emotion:
i. It is caused by specific event
ii. Its effect is very brief in duration such for seconds or
minutes
iv. It is usually accompanied by distinct facial expression. 92
Intensity of Emotion depends
upon
• Biological arousal: It is a physical change such as
increased heart beat, breathing, sweating etc. it is
unnoticed. Not all biological arousal is emotion. For
example: climbing a steep flight may increase your heart
beat or breathing but not an emotion.
• Thought or mental evaluations: They are process of
associating meaning with emotion. Thought give birth to
emotions.
• Behavioral expressions: It is largely individual,
communicates emotion through nonverbal behaviors such
as gesture, voice tone, body language and facial expression
93
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95
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Importance of Emotions
• Survival
Our emotions alert us when natural human need is
not being met.
• Decision Making
Our emotions are a valuable source of information.
Our emotions help us make decisions.
• Predicting Behavior
Our feelings are also useful in helping us predict our
own, and others' behavior.
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Importance of Emotions
Boundary setting
When we feel uncomfortable with a person's behavior, our
emotions alert us. If we learn to trust our emotions and
feel confident expressing ourselves.
Communication
Our emotions help us communicate with others. Our facial
expressions, for example, can convey a wide range of
emotions.
Unity
Our emotions are perhaps the greatest potential source of
uniting all members of the human species.
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Types of Emotions
• Positive emotions are emotions that are typically associated
with pleasant experiences or feelings of happiness, joy, love, and
contentment. These emotions are often accompanied by physical
sensations such as warmth, a sense of lightness, or a feeling of
expansion. Examples of positive emotions include happiness,
excitement, appreciation, pride, optimistic and joyful.
• Negative emotions, on the other hand, are emotions that are
typically associated with unpleasant experiences or feelings of
sadness, anger, fear, and disgust. These emotions are often
accompanied by physical sensations such as tension, heaviness,
or a sense of contraction. Examples of negative emotions include
sadness, anxiety, anger, depression, regret, grief, and shame.

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Managing Emotions
• Exercise
• Yoga and Meditation
• Be kind to others
• Be open and accept what is around you
• Talk with your friends
• Distract yourself
• Don’t let negative feeling surround you
• Spend time outside
• Be grateful
• Be optimistic
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Cognitive Dissonance
• Cognitive dissonance refers to a situation involving conflicting
attitudes, beliefs or behavior.
• It is the feeling of uncomfortable tension which comes from
holding two conflicting thoughts in the mind at the same time.
• Cognitive dissonance occurs when a person’s behavior and
beliefs do not complement each other or when they hold two
contradictory beliefs.
• In other words, cognitive dissonance refers to a mismatch
among emotions, attitudes, beliefs and behavior.
• It has a significant impact on the workplace which may lead to
reduced job satisfaction, lower morale, and increased stress of
an employees.
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Cognitive Dissonance
To release the tension we can take one of three actions:
• Change our behavior.
• Justify our behavior by changing the conflicting
cognition.
• Justify our behavior by adding new cognitions.
These are the strategies to reduce cognitive dissonance:
• Focus on supportive beliefs
• Reduce conflicting beliefs
• Change the conflicting beliefs
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END OF CHAPTER I

Thank You
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