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Unit 1: Introduction to Organizational Behaviour (OB) LH 5

1.1 Concept, Characteristics, and Importance of OB

1.2 OB system, basic assumptions, and levels of OB analysis

1.3 Contributing disciplines, emerging trends, and challenges in OB

1.4 Determinants/factors influencing individual behaviour – needs,

motives, beliefs, personality, attitudes, values, and emotions

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Concept of OB
Organizational behaviour (OB) is concerned with analyzing, understanding, predicting, and managing human
behaviour in the organization for improving organizational effectiveness. It is the study of what people do in
the organization and how their behaviour affects organizational performance. It is the systematic study of the
behaviour of individuals and groups within an organization to improve performance. It is a human
psychological aspect and is directly concerned with studying human behaviour at work.

The word organizational behaviour is constituted of two words, consisting of organization and behaviour. An
organization is a collection of people working together in a division of labor to achieve a common purpose.
Behaviour is concerned with the series of activities and interactions that individuals engage in within the
organization. Therefore, organizational behaviour is concerned with studying individuals and groups at work
and managing them for better performance of the organization.

"Organizational behaviour is the study and application of knowledge about how people - as individuals
and groups - act within organizations. It strives to identify ways in which people can act more effectively.”-
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"Organizational behaviour can be defined as the understanding, prediction, and management of the

human behaviour that affects the performance of the organizations.”-Fred Luthans

"Organizational behaviour is the study of what people think, feel, and do in and around organizations.”-

McShane and Glinow

"Organizational behaviour is a field of study that investigates the impact that individuals, groups, and

structure have on behaviour within an organization for the purpose of applying such knowledge toward

improving an organization's effectiveness.”-Stephen P. Robbins

Organizational behaviour is a multidisciplinary field devoted to understanding individual and group

behaviour, interpersonal processes, and organizational dynamics. The study of organizational behaviour is a

very interesting and challenging task. It is related to individuals and groups of people working together in the

organization as teams to achieve common goals. Human beings have creativity, thinking, and vary in attitude.
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In practice, it is found that two individuals do not behave in the same manner in a particular situation. When a
larger number of individuals work together in an organization, they may have different knowledge, attitudes,
perception and experiences. In some cases, they can create conflict, which will have a negative impact on
organizational performance. An important function of a manager is to understand, predict, and manage human
behaviour at work for organizational benefits. For this purpose, managers must know organizational
behaviour.

Organizational behaviour involves many activities that are essential for improving job performance,
increasing job satisfaction, promoting innovation, and encouraging leadership. To achieve the desired results,
managers may adopt different tactics, including reorganizing groups, modifying compensation structures, and
changing the way of performance evaluation.

The key elements of OB are organizational goal, people, structure, technology, and environment. The
emphasis of OB is to integrate organizational elements to meet goals. It focuses on the behaviour of people in
all types of organizations, such as government, social, and business organizations.
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Characteristics of Organizational Behaviour

Organizational behaviour is the study of what people do in the organization and how their behaviour affects
organizational performance. It is a human psychological aspect and is directly concerned with studying
human behaviour at work. The following are the common characteristics of organizational behaviour:

1. Multidisciplinary Approach: Organizational behaviour is a multi-disciplinary approach. It is heavily

influenced by several other behavioural sciences and social sciences like psychology, sociology,
anthropology, and political science. It has psychological foundations. The elements of organizational
behaviour, such as learning, perception, attitude, motivation, leadership, conflict, team work, etc., are based
on different disciplines.

2. A Separate Field: Organizational behaviour is a separate field of study that focuses on human behaviour at
work. It is not only a discipline. It is part of general management. It represents a behavioural approach to
management. It helps to analyze, understand, predict, and manage human behaviour at work for achieving
common
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3. A Normative Science: Organizational behaviour is a normative science. A normative science prescribes

how the various findings of research can be applied to get organizational results, which are acceptable to
the society. Thus, what is acceptable to society or individuals engaged in an organization is a matter of the
values of the society and the people concerned.

4. Both Art and Science: Organization behaviour is both art and science. It is considered art because it
contains knowledge about the behaviour of individuals. It needs skills and efficiency to understand
individual behaviour. It is considered a science because it involves the application of scientific knowledge.
It especially focuses on the use of social science to solve behaviour-related issues.

5. Focus on Objectives: Organizational behaviour is goal-oriented. Every organization is formed for the
achievement of specific objectives. These objectives involve earning profit, maximizing wealth, brand
image, good working environment, teamwork, etc. OB emphasizes managing human resources for
organizational effectiveness. It supports meeting goals.

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6. A Total System: Individual behaviour can be analyzed by keeping in view his psychological framework,
interpersonal orientation, group influence, and social and cultural factors. It is the reason that individuals
nature is quite complex and difficult to understand. Organizational behaviour, by applying the systems
approach, tries to understand and find solutions for this complexity.

7. People-Oriented: Organizational behaviour is people-oriented. People make up the internal social system
of the organization. They involve individuals and groups. People are dynamic in nature and interact with
each other while doing work. They also influence each other while making important decisions.
Organizational behaviour emphasizes predicting and controlling human behaviour for organizational
benefits.

8. Environmental Influence: Organizational behaviour is influenced by the changing social environment.

The environment is dynamic and changeable on the basis of time and situation. On the basis of the
changing environment of society, the perception, learning, motivation, attitude, and values of people would
also be changed. Such a change can create conflict, power, politics, team work etc in the organization. OB
facilitates
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the managers to work with changing
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Importance/Significance of OB
Organization behaviour is concerned with analyzing, understanding, predicting, and managing human
behaviour in the organization. It helps to identify and analyze the cause and effect of complex human
behaviour in the organization. The following are the benefits of the study of OB in organizations:

1. Understand Employees: The study of OB helps the manager to understandemployees of the organization.
It involves the study of the psychology of each employee and also their group behaviour. The development
of understanding between the manager and employees facilitates solving problems in operation through
mutual consent. It is supportive for smooth functioning of the organization.

2. Improve Better Labour Relations: OB emphasizes that employees working in the organization must be
treated as human beings. They should not be taken from a mechanistic approach. It helps to overcome the
root cause of the problem in the organization. In such an environment, employees consider themselves as a
member of the organization. It helps to improve industrial relations in the organization, which is essential
for smooth
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3. Motivate Employees: OB encourages the employees to perform their duties to the best of their ability and
knowledge. It helps the manager to use appropriate tools and techniques to motivate employees on the basis of
effectiveness. The tools of encouragement may be extrinsic or intrinsic rewards. Motivated employees perform
their work uniformly, which helps to minimize supervision costs. It also supports the proper use of physical
resources.

4. Predict and Management of Human Behaviour: OB is one of the important tools of predicting and managing
human behaviour in the organization. It involves the study of individuals and groups working in the
organization. It helps to know their attitude, perception, learning, value, and behaviour in the organization. It
facilitates the manager to take right decision at the right time. The proper management of human resources
facilitates organizational effectiveness.

5. Effective Utilization of Human Resources: Human resource is the dynamic resource of the organization. OB
provides guidelines to the manager for effective utilization of human resources by inspiring them. The proper use
of human resources supports the proper use of other physical resources, consisting of money, materials, and
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6. Improve Productivity: Productivity is concerned with the best utilization of organizational resources to
improve the quantity and quality of products or services. OB emphasizes the effective utilization of human
effort by motivating employees. The proper use of human resources supports the minimization of wastage
of physical resources, which helps to improve the productivity of the organization.

7. Goal Integration: OB helps to integrate both organizational and individual goals of the employees. At the
primary stage, it motivates the employees for the best utilization of their efficiency to achieve
organizational goals. The achievement of organizational goals helps to fulfill the individual goals of the
employees. For instance, when an organization earns planned profit, then a certain part of the profit is
distributed among the employees as a bonus.

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OB System
Organizational behaviour is concerned with analyzing, understanding, predicting, and managing human
behaviour in the organization for improving organizational effectiveness. It is the systematic study of the
behaviour of employees at individual, group, and organizational system levels. As a system, organizational
behaviour involves four dimensions: inputs, processing, outputs, and feedback. All these activities are
affected by the changing environment of society. Brief descriptions of the OB system are as follows:

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1. Inputs: Organizational behaviour system begins when individuals receive information from the
environment through the five senses, consisting of feeling, hearing, seeing, smelling, and tasting. In the
course of the regular functioning of the organization, people receive much information from different
sources.
However, some information is noticed, but most of the information is screened out. People notice things on
the basis of their size, intensity, motion, novelty, and repetition. They screened out most of the information
because of their not interest on such information. There are three categories of input variables to the OB
system consisting of individual level variables, group-level variables, and organizational-level variables.
Individual-level variables involve personal characteristics, personality, values, ability, emotion, and attitude
of individuals.
Group-level variables involve the size of the group, group composition, role status, norms, values, and
group cohesiveness.
Similarly, organizational-level variables involve organizational structure and culture. They are independent
variables
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and provide impact on OB system
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2. Processing: Processing is the interpretation part of the OB system. The inputs received by the individuals,
groups, and the organization as a whole are processed together to bring the outputs. The individual process is
based on the degree of perception, learning, motivation, and decision-making ability of individuals. Group
process is influenced by communication system leadership and trust, level of conflict, power and politics, and
teamwork. Organizational level process is determined by human resource policies and practices, work design,
and the technology adopted. The systematic processing of information facilitates providing a proper response in
terms of outputs.

3. Outputs: Getting outputs is the final stage of the OB system. The output components of organizational
behaviour involve productivity, job satisfaction, organizational citizenship, employee turnover, and absenteeism.

a. Productivity: An organization is said to be productive if it is able to utilize resources effectively. The proper use
of resources at the time of transferring into output helps to minimize cost. As such, productivity emphasizes both
effectiveness and efficiency. For example, a hotel is effective when it successfully meets the needs of its
customers.
2/23/2026 It is efficient when it can do so at a low cost.
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b. Absenteeism: Absenteeism is the failure to report for work to the management on time. It is difficult for an
organization to operate smoothly and to attain its objectives if employees fail to report for their job. The
workflow is disrupted, and sometimes important decisions may be delayed. When the level of absenteeism
is beyond the normal range in an organization, it may have a direct impact in organization's effectiveness
and efficiency.

c. Turnover: Turnover is the voluntary and involuntary permanent withdrawal of employees from an
organization. High labour turnover rate increases selection and training costs. All organizations have some
level of turnover, which will create a place for new, creative employees. However, excess turnover of
employees can disrupt organizational effectiveness.

d. Job Satisfaction: Job satisfaction is a general attitude of an employee toward their job. When employees
receive expected rewards and incentives from their job, it helps to satisfy them. It is believed that satisfied
employees are more productive than dissatisfied employees.

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e. Organizational Citizenship: It is the development of a feeling of belongingness and membership among

the employees in the organization. It is discretionary behaviour that is not a part of an employee's formal
job requirement. Successful organizations need employees who provide performance beyond expectations.
The effectiveness of an organizational behaviour system is measured on the basis of its output. We can
only say that the system developed in OB is appropriate only when output is achieved effectively. When
the OB system becomes effective, it provides a positive impact on productivity, job satisfaction, and
organizational citizenship, whereas it provides a negative impact on absenteeism and employee turnover.

4. Feedback: Organizational behaviour is a continuous process for the functioning and existence of the
organization. Therefore, it is necessary to evaluate the outcomes of the organizational behaviour process. If
the 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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5. Environments: The implementation of the OB system is affected by changing both the internal and
external environments of the society. Internal environment involves owners, board of directors, employees,
organizational resources, and organizational structure, etc. Similarly, the external environment involves
political and legal, socio-cultural, economic, and technological environments. Internal environment
involves weaknesses and strength whereas the external environment provides opportunities and threats.

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Basic Assumptions of Organizational Behaviour

Organizational behaviour is an important element of social science. Every field of social science has a
philosophical foundation of basic assumption that guides its development. For example, in accounting, a
fundamental concept is that "for every debit there will be a credit". The entire double entry system of
accounting is developed in this philosophy.

In physics, a basic philosophy is that "elements of nature are uniform". The law of gravitation operates
uniformly in many part of the world. Similarly, organizational behaviour is based on a set of fundamental
assumptions revolving around the nature of people and organization.

Therefore, for predicting and managing organizational behaviour it is essential to understand the basic
assumption about nature of individuals and the nature of organizations. The basic assumption of OB is studied
from the following two perspectives:

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1. The Assumption about Nature of People: All the individuals have separate traits and quality. They are
guided by their special features. For understanding organizational behaviour it is necessary to understand
basic assumptions about the nature of people. The following are the basic assumptions about nature of
individuals:

a. Individual Differences: All the individuals are different from each other. The study of individual
psychology, it is found that every individual has unique traits and characteristics. Every individual is
different from the day of his birth.

Similarly, personal experiences make a person more different than others. Every individual differs in many
ways like perception, attitude, intelligence, physique, personality, learning capability, communicative
ability etc.

All the employees cannot be motivated through a specified standard behaviour. A professional manager
needs to consider individual difference while dealing with employees. It is essential to understand
individual behaviour for effective Assistant
dealing with employees.
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b. A Whole Person: An individual should be considered as a whole person. Every individual involves special
skills, likes and dislikes, pride, and prejudices. An individual's way of living in a family cannot be
separated from work life. Similarly, employee expects all around career development in the organization.
This is why the managers need to provide their employees with a proper work environment where they can
work hard to progress and develop their abilities. It is necessary to provide proper incentives so that
employees can fulfill the needs of family members.

c. Motivated Behaviour: Motivation is a human psychological aspect. It is the process of encouraging

employees for better performance. It is need-directed, consisting of financial and non-financial. Every
employee expects motivated behaviour from their manager. It is the reason that managers need to
understand how employees can be motivated for better performance. For this purpose, it is necessary to
provide facilities to employees on the basis of their skills, efficiency, and also the resources of the
organization. Besides, there should be a system of a good working environment.

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d. Value of the Person: Employees should not be treated only as economic tools. All the employees have
feeling dignity and respect. They are expecting value and recognition of their skills and performance in the
organization. Human value indicates that every individual needs to be treated differently. It shows human
dignity because people at every level of the professional ladder want to be treated with respect and dignity.
Every job needs to be done with respect and recognition. This helps to improve every individual's
aspirations and abilities. It develops the feeling of organizational citizenship among the employees. And
they do the assigned job with full devotion.

e. Selective Perception: Perception is an individual's own view of the world. It is the process of getting
information from the environment and attempting to organize and interpret it to make it meaningful.
People are unique and different from each other. They perceive the same thing differently. Every individual
has a unique way of sensing, collecting, organizing, and interpreting information received from the
environment. Understanding the concept of selective perception is necessary in order to know individual
differences at work and to predict their influences on work behaviour.
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f. Desire for Involvement: Individuals have a desire for involvement in work. They want to show their
creativity, skills, and efficiency while doing their assigned job. They expect independence in doing a job.
They want to face challenges and take credit for the successful completion of work. They want to
participate in decision making process. Managers need to understand the skills and abilities of each
employee. And based on their capability, it is essential to provide an opportunity to participate in planning
and decision-making. It helps to improve their working efficiency and managerial ability.

2. The Assumption about the Nature of Organization: For understanding organizational behaviour, it is
also essential to understand the nature of the organization. The following are the assumptions about the
nature of the organization:

a. Social System: All the organizations are part of a social system. Their activities are governed by social and
psychological laws. Just as people have psychological needs, they also have social roles and status. Their
behaviour is influenced by their group as well as by their individual drives. There are two types of social
systems that exist in the organization, consisting of formal and informal social systems.
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The social system is dynamic and changes based on changes in the environment. All elements of social
systems are interdependent and influence each other. It is because everything is related to everything else.
Managers need to understand that an organization is a part of a social system and it is affected by changes
in the environment. Therefore, for dealing with organizational behaviour issues, it is essential to consider
the social system.

b. Mutuality of Interest: Mutuality of interest indicates that both the organisation and people need each
other. Organizations are formed and maintained based on some mutuality of interest among the
participants. People require organizations to achieve their goals; similarly, organisation needs people to
meet their objectives. Lack of mutual interest causes a lack of trust between people and organizations.
Mutual interest provides a common goal for all the participants, which results in encouragement for the
people to solve the problems of the organization. Therefore, managers need to consider both organizational
goals and individual goals of employees. Such mutuality of goals encourages developing a good working
environment in the organization.
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c. Ethical Treatment: Ethics is the set of moral principles and rules guiding individual behaviour. It is the
basis of determining right or wrong in a given situation. The ethical behaviour of an individual depends
upon the moral standards or codes of conduct determined by society. Managerial ethics is the standard of
behaviour that guides individual managers in their work. An organization should establish rules, a code of
conduct, working procedures, and a system. It is also necessary to provide proper training and counseling
both for managers and employees to consider the ethical behaviour. It facilitates maintaining the prestige,
image, and reputation of the organization in society.

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Levels of OB Analysis
 The field of organizational behaviour involves multiple levels of analysis. Such different levels of analysis are necessary
for understanding individual behaviour within organizations. People always act within the context of their environment,
which includes both objects and people. The study of organizational behaviour is a multi-level endeavor because workers
influence their environment, and they are also influenced by environmental changes. The different levels of analysis used
in the field of organizational behaviour are: the individual level, the group level, and the organizational level. A brief
description of these levels is as follows:

a. Individual Level Analysis: This level is also known as micro or inter-personal level analysis. Individuals are involved
in an organization to perform various types of functions on the basis of their skills and efficiency. They do activities to
meet common objectives. All the individuals working in the organization differ in their traits and characteristics. At the
individual level of analysis, organizational behaviour involves the study of learning, perception, creativity, motivation,
personality, turnover, task performance, cooperative behaviour, deviant behaviour, ethics, and values. At this level of
analysis, organizational behaviour draws upon human psychology. In this level, managers need to analyze how
individuals react to changing organizational rules, regulations, and working procedures and practices.
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b. Group Level Analysis: This level of analysis is also known as meso-level or inter-group analysis. Employees
work in an organization as a work group or team. They interact, cooperate, and coordinate with each other to
achieve common goals. At the group level of analysis, organizational behaviour involves the study of group
dynamics, group performance, intra-group and intergroup conflict and cohesion, leadership, power and politics,
norms, interpersonal communication, networks, and roles. At this level of analysis, organizational behaviour
draws upon the sociological and socio-psychological sciences. In this level, managers need to analyze how group
members interact and react with changing organizational rules, regulations, and working procedures and
practices.

c. Organizational Level Analysis: This level analysis is also known as macro-level analysis. At the organizational
level analysis, the relationship between the organization and its surrounding environment is studied. Generally, at
this level, organizational behaviour involves the study of topics such as organizational culture, organizational
structure, cultural diversity, inter-organizational cooperation and conflict, change, technology, and external
environmental forces. At this level of analysis, organizational behaviour draws upon sociology, anthropology,
and political science. The behavioural outcomes show the result in terms of productivity, absenteeism, turnover,
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citizenship, and job satisfaction.
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Contributing Disciplines in the Field of OB

Organizational behaviour is an applied behavioural science. It is built on contributions from several

behavioural and applied disciplines. The major discipline areas contributing to the field of organizational

behaviour are psychology, sociology, social psychology, anthropology, and political science. Psychology

contributions have been mainly at the individual level of analysis. The other four disciplines have contributed

to group-level and organizational system-level analysis. A brief description of these disciplines is as follows:

1. Psychology: Psychology is concerned with the study of individual behaviour. It is a science that wants to

measure and explain the change in human behaviour. Its contribution to organizational behaviour is at the

micro level. Those who have contributed and continue to add to the knowledge of OB are learning theorists,

personality theorists, counseling psychologists, and industrial psychologists. Industrial psychologists

concerned themselves with the problems of fatigue, boredom, and other factors relevant to working
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conditions
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 The contribution of psychology to OB has been through learning, perception, personality, emotions, training,
leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance
appraisals, attitude measurement, employee selection techniques, work design, and job stress. So, the knowledge of
psychology can really help in improving and modifying the behaviour of individuals and groups. If the
psychological needs are fulfilled, it gives satisfaction to people and also gives peace of mind, which can improve
the ability of an organization.

2. Sociology: Sociology is concerned with the study of group behaviour. It is the study of people in relation to their
fellow human beings. It emphasizes the role of people in the social system. The contribution of sociology to OB
has been in the area of group dynamics, communication, power, conflict, teamwork, culture, status, etc. Its
contribution in the area of organizational level has been in the areas of organization theory, technology, and
change in organization. The study of sociology provides support for improvement and modification of OB.
Society provides the base for collective living and relationships. Social institutions provide the base for the better
form and shape of society among its different organs. Therefore, the knowledge of sociology helps to understand
social norms, value and customs, which help
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3. Social-psychology: Social-psychology is the combination of both psychology and sociology. It focuses on

the influence of people on one another. In social psychology, the major study area is change, i.e., how to
implement it and how to reduce barriers to its acceptance. Social psychologists also contribute to
measuring and understanding the changing attitudes. They are identifying communication patterns and
building trust among group members who are working together to achieve common goals. They have made
important contributions to our study of group behaviour, power, and conflict. They show the way in which
group activities can satisfy individual needs and the group decision-making process.

4. Anthropology: Anthropology is the study of society and its culture to learn about human beings and their
activities. It is the science of human beings, especially of their environment, social relations, and culture. It
focuses on human study from the perspectives of human development, span of development across various
life stages, human values, norms, language, cultural system, and tradition. It helps to understand
differences in fundamental values, attitudes, and behaviour between people in different countries and
within different organizations. It supports establishing the relationship between the social norms, values,
and traditions and responses of people to each other, bearing diverse value systems.
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Emerging Trends in OB
1. Emphasis on Employee Well-being and Mental Health: Organizations are increasingly realizing that
employee productivity and engagement are closely tied to mental and emotional well-being. Rather than
focusing solely on traditional perks like bonuses or office amenities, many companies are shifting toward holistic
well-being initiatives that address the whole person. This includes programs for stress management, promoting
work-life balance, offering mindfulness training, and providing counseling or mental health support. By
prioritizing these areas, organizations aim to create healthier, more resilient employees, which in turn enhances
overall performance and workplace satisfaction.

2. Diversity, Equity, and Inclusion (DEI): Organizations are placing greater emphasis on Diversity, Equity, and
Inclusion (DEI) to build workplaces that value and embrace differences in gender, ethnicity, age, and
background. Beyond simply meeting hiring quotas, companies are implementing policies that promote a sense of
belonging, ensure equitable opportunities for career growth, and support bias-free performance evaluations.
Leadership effectiveness is increasingly assessed based on DEI outcomes, making it a key component of overall
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3. Digital Transformation and Technology Integration: Organizations are rapidly embracing digital
transformation and technology integration to enhance workforce management and collaboration. Tools
such as AI, machine learning, and data analytics are being used to understand and optimize employee
behavior and performance. At the same time, digital collaboration platforms like Slack and Microsoft
Teams, along with remote work technologies, are reshaping how teams communicate and coordinate.
Virtual teams, online performance tracking, and digital feedback systems are increasingly becoming
standard practices, enabling more flexible, data-driven, and efficient work environments.

4. Flexible Work Arrangements: Flexible work arrangements are transforming the way organizations
approach employee motivation, engagement, and accountability. Remote, hybrid, and adaptable work
schedules allow employees to balance personal and professional responsibilities more effectively, moving
away from traditional 9-to-5 structures toward results-oriented work environments (ROWE). This
emphasis on flexibility not only boosts productivity but has also become a critical factor in attracting and
retaining talent in today’s competitive job market.
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5. Focus on Employee Engagement and Experience: Organizations are increasingly shifting from
transactional HR practices to approaches that prioritize the overall employee experience. Strategies now
focus on providing meaningful work, opportunities for career development, regular recognition, and a
strong culture of feedback. By enhancing engagement in these ways, companies not only improve
employee satisfaction but also strengthen organizational agility and foster a culture of innovation.

6. Knowledge Management and Continuous Learning: In today’s rapidly changing technological and
market landscape, continuous learning has become essential for both employees and organizations.
Companies are prioritizing skill development through e-learning platforms and fostering a culture of
knowledge sharing. Trends such as cross-functional learning and adaptive leadership training are gaining
prominence, enabling employees to stay agile, innovative, and equipped to meet evolving business
challenges.

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7. Ethical Leadership and Corporate Social Responsibility (CSR): Stakeholders increasingly expect
leaders to demonstrate ethical behavior and uphold social responsibility, making ethics, transparency, and
sustainability central to organizational culture. Companies are integrating corporate social responsibility
(CSR) initiatives with employee engagement efforts and brand strategy, fostering trust, enhancing
reputation, and creating a workplace where employees feel proud to contribute to socially responsible and
values-driven goals.

8. Emphasis on Agile and Innovative Cultures: Organizations are increasingly fostering agile and
innovative cultures that extend beyond IT departments to influence overall operations. Emphasis is placed
on flexibility, rapid decision-making, and cross-functional collaboration, enabling teams to respond quickly
to changing market demands. At the same time, employees are encouraged to embrace intrapreneurship
and contribute innovative ideas, promoting creativity and continuous improvement at every level of the
organization.

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9. Data-Driven Decision Making in OB: Organizations are increasingly relying on data-driven decision-
making in organizational behavior by leveraging HR analytics to predict employee behavior, turnover, and
engagement. People analytics enables informed decisions across recruitment, performance management,
and training, ensuring that strategies are evidence-based rather than intuitive. By systematically tracking
behavioral metrics, companies can identify trends, address challenges proactively, and drive continuous
organizational improvement.

10. Globalization and Cross-Cultural Management: With the rise of globalization, organizations
increasingly operate with multinational and virtual teams, making cross-cultural management essential.
Understanding cultural nuances in communication, motivation, and conflict resolution is critical for
effective teamwork. As a result, cultural intelligence has become a key skill for both employees and
leaders, enabling organizations to navigate diverse workforces, foster collaboration, and achieve global
business objectives.

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Challenges in OB
1. Managing Workforce Diversity: Managing workforce diversity involves recognizing and valuing differences in
culture, language, gender, age, and personal values, which, if not addressed, can lead to misunderstandings or
conflicts within the workplace. Organizations must balance inclusivity with productivity by fostering open
communication, promoting collaboration, and implementing effective conflict resolution strategies. A key
challenge in this process is preventing unconscious biases from influencing decisions related to hiring,
promotions, and team interactions, ensuring that all employees are treated fairly and equitably while contributing
to a cohesive and high-performing work environment.

2. Adapting to Technological Changes: Adapting to technological changes requires organizations to navigate the
rapid pace of digital transformation and automation, which can significantly alter how employees perform their
tasks and collaborate. Such shifts may provoke resistance among employees due to fears of job loss or gaps in
necessary skills. The main challenge lies in implementing effective change management strategies that minimize
disruption, while promoting continuous learning and upskilling to help employees confidently adapt to new
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3. Employee Motivation and Engagement: Employee motivation and engagement involve inspiring a
diverse workforce whose expectations, personal goals, and values may differ, making it challenging to
maintain consistent enthusiasm and commitment. When motivation is low, organizations face issues such
as high turnover, burnout, and reduced morale, which negatively impact overall performance. The key
challenge is to design effective reward systems, recognition programs, and provide meaningful work that
aligns with employees’ aspirations, fostering sustained engagement, satisfaction, and productivity.

4. Communication Issues: Communication issues arise when messages are misunderstood or lost across
hierarchical levels, different departments, or within virtual teams, leading to inefficiencies and errors. The
rise of remote and hybrid work arrangements further complicates collaboration and relationship-building,
as informal interactions and immediate feedback become limited. The primary challenge is to maintain
clarity and transparency by establishing effective communication channels, ensuring that information flows
accurately and consistently, and fostering a culture where employees feel informed and connected.

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5. Conflict Resolution: Conflict resolution is a critical aspect of managing teams, as disagreements naturally
arise from diverse opinions, personalities, and work styles. If conflicts are not addressed effectively, they
can lower morale, reduce productivity, and create a tense work environment. The key challenge is to equip
leaders and employees with strong negotiation, mediation, and problem-solving skills, enabling them to
resolve disputes constructively, maintain positive relationships, and sustain a collaborative and high-
performing team culture.

6. Leadership Challenges: Leadership challenges arise as leaders are expected to motivate, inspire, and
guide diverse teams that may be geographically dispersed or working remotely. They must balance
authority with empathy, fostering trust and collaboration while driving performance. The key challenge is
to cultivate ethical, adaptive, and transformational leadership skills that allow leaders to navigate dynamic
and complex environments, make sound decisions, and effectively support and develop their teams.

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7. Organizational Change and Resistance: Organizational change is essential as companies must

continuously adapt to evolving market trends, competition, and regulatory requirements. However,
employees often resist change due to uncertainty, fear of the unknown, or concerns about their roles, which
can slow implementation and affect performance. The primary challenge is to design and execute change
strategies that minimize resistance, communicate the benefits clearly, and foster employee acceptance,
engagement, and commitment to new processes or directions.

8. Maintaining Organizational Culture: Maintaining organizational culture becomes challenging during

periods of rapid growth, mergers, or globalization, as these changes can dilute or disrupt established
values, norms, and workplace behaviors. The key challenge is to preserve core values and ethical standards
while remaining flexible enough to adapt to external pressures, ensuring that employees continue to feel
connected to the organization’s identity and mission even amid significant change.

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9. Managing Work-Life Balance: Managing work-life balance is increasingly important as rising workloads
and heightened expectations contribute to stress, burnout, and higher rates of absenteeism among
employees. The main challenge is to create a supportive work environment by promoting flexible
schedules, wellness initiatives, and policies that help employees manage personal and professional
responsibilities, ultimately enhancing well-being, satisfaction, and productivity.

10. Ethical and Social Responsibility Issues: Ethical and social responsibility issues arise as organizations
face growing pressure to operate ethically and sustainably, balancing profit with societal and
environmental concerns. Unethical practices can harm reputation, erode employee trust, and undermine
stakeholder confidence. The key challenge is to embed ethical behavior and corporate social responsibility
(CSR) into daily operations, decision-making, and organizational culture, ensuring that values guide
actions consistently across all levels of the organization.

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Determinants/Factors Influencing Individual Behaviour – Needs,

Motives, Beliefs, Personality, Attitudes, Values, and Emotions
1. Concept of Needs

Need is defined as the measurable discrepancy existing between a present state M of affairs and a desired
state of affairs as asserted. Needs are deficiencies or lacks la of something that energize us to satisfy them.
Needs are created whenever there is a physiological or psychological imbalance. Human beings have
unlimited needs, as the fulfillment of one need creates a desire for another need.

Unsatisfied needs cause tension within the individual. For the fulfillment of unlimited needs, this is the major
concern of every manager of the organization. Needs are the beginning points for motivation. Motivation is a
process that starts with a physiological and psychological deficiency or need that activates behaviour that is
aimed at a goal or incentives. Many human relations scholars have given their views about needs and their
relation to human motivation and behaviour. These scholars include Abraham Maslow, Frederick Herzberg,
Clayton Alderfer, David McClelland,Assistant
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Types of Needs:

Human scholars classified human needs in various types, such as Abraham Maslow, who categorized human
needs in five hierarchical levels consisting of physiological needs, safety needs, affiliation needs, ego needs,
and self-actualization needs. Frederick Herzberg classified human needs into two levels: hygiene factors and
motivating factors. Similarly, Clayton Alderfer classified human needs into three categories: existence of
need, relatedness needs, and growth needs. David McClelland classified human needs into three categories:
need for affiliation, need for power, and need for achievement. However, human needs can be studied from
two perspectives:

a. Primary Needs: They are also known as basic needs and are common to all individuals. These needs
involve food, water, clothes, shelter, rest, and other similar basic needs. The fulfillment of such needs is
essential for the survival of all human beings. These needs are finite in nature. These needs are at the lowest
level in the hierarchy of needs. Every individual wants to fulfill such needs for their survival.

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b. Secondary Needs: Besides primary needs, all other needs come under secondary needs. These needs involve future
safety and security, social affiliation, esteem or ego needs, and self-actualization needs. When people fulfill primary
needs, they desire to fulfill secondary needs. They seek physical safety and economic security for the future. As social
animals, they want to live in society and want to consume social elements such as belongingness, friendship, love and
affection, social acceptance, social status, and prestige. They want to have certain respect and honour in society.

2. Concept of Motives

 The word motive comes from the Latin word motive, which means moving for action to fulfill needs. A motive is a
person's reason for choosing a specific behaviour from among several choices. Motives are derived from needs. Human
motives are created whenever there is a physiological or psychological imbalance, and they try to fulfill such imbalances.

 Motive involves the psychological feature that stimulates an individual to action toward a desired goal. It is the reason for
the action of individuals that gives purpose and direction to certain behaviour. Individuals differ in nature, and therefore,
there are different motives to motivate them. Managers need to understand the different types of motives of employees for
their successful motivation. Understanding motives helps managers to apply the most appropriate tool or technique to
motivate every employee. Assistant Professor- Dinesh Pant, Central Campus, Far Western
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Types of Motives

a. Primary Motives: Primary motives are essential for a person to satisfy. They are the basic needs of an individual that
are essential for everybody. Primary motives are physiologically based. They are physiologically based, so they do not
need to be learned. They are the basic and foremost motives that are expected by any individual. The common
examples of primary motives are food, shelter, clothes, sleep, rest, avoidance of pain, and basic safety, etc.

b. 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 necessities are no longer an issue. They are
more of a need in a modern and developed society. Secondary motives are not physiologically based and must be
learned. Individuals are involved in action to satisfy such personal motives. Some examples of secondary motives are
power, achievement, security, social Affiliation, status, or prestige, etc.

c. General Motives: General motives neither fall in the primary category nor in the secondary one. They are kind of in
the middle of primary and secondary motives. They have to be physiologically based, but they must not have to be
learned. It is found that many managers do not pay enough attention to general motives. However, the understanding
of general motives is very important for studying and understanding organizational behaviour. Broadly, there are two
types of general motives: the curiosity motive and the affection motive.
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3. Concept of Beliefs:

 Beliefs are internal feelings that something is true, even though that belief may be unproven or irrational. They are the
psychological foundation of individual behaviour. They refer to the perception or attitude towards an object that an
individual has developed through experience and learning. They are based on knowledge, opinion, and faith. They
develop from facts that are considered truthful, even without positive knowledge or proof. For example, the presence of a
supernatural being or God is a belief that is widely held among almost all people. Beliefs provide great impact on
individual behaviour.

 Beliefs are mental attitudes established after an individual agrees with the proposition’s truth. Such truths can be based on
morals or on a body of facts presented by parents, teachers, peers, reference group members, experts, etc. Religion is a
belief system in which people believe that there is a divine force responsible for the creation of life in the universe. A
divergent belief to religion is the theory of evolution, which states that life in the universe formed as a result of
catastrophic events and chemical reactions. Belief is distinct from judgment, which is a conscious mental act that involves
concluding a proposition. Beliefs are the mental attitude that some propositions are considered true rather than false. They
are developed through cultural development and functional factors.
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Development of Beliefs

Beliefs are the psychological foundation of individual behaviour. They refer to perception or attitude towards
an object, event, or situation that an individual has developed through experience and learning. They are
based on knowledge, opinion, and faith. Generally, individual beliefs develop through two sources, consisting
of cultural and functional factors.

a. Cultural Factors: Cultural factors provide impact on individual beliefs. These factors involve tradition,
custom, value considered by the individuals in the society. Such culture value is gained by an individual
through parents, teachers, peers, reference group members, etc. The change in culture value affect on
individual beliefs and behaviour.

b. Functional Factors: For the fulfillment of needs and expectations, individuals are involved in the
organization to do work. In the course of doing a job, they come into interaction with managers, colleagues,
and juniors. They can get new knowledge, concepts, ideas, and technology. Such functional factors develop
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change in individual beliefs and behaviour.
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4. Personality

The word personality is derived from the Latin word 'per sonar, which refers to speaking through. According
to Webster’s dictionary, personality is the pattern of collective character, behavioural, temperamental,
emotional, and mental traits of an individual. It involves the sum-total of internal and external qualities of an
Individual. It shows how an individual acts and interacts with others when dealing with a subject matter.

It relates to the physical and psychological growth and development of the individual. It shows an
individual’s ability to deal with people and the environment. However, the term personality has a different
meaning for different Individuals. There is a lack of consensus among people for a common concept of
personality. Some have the opinion that it shows one’s dress, charm, and attractiveness, whereas others have
the opinion that it shows intelligence and mental ability, and so on.

"Personality represents a stable set of characteristics and tendencies that determines the psychological
Behaviour of people." Richard Steers

“Personality is the sum-total of the way in which an individual reacts and interacts with others.” Stephen P
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Nature/Features of Personality

 Personality involves the sum-total of internal and external characteristics of an individual, which show how he acts and
interacts with people and the environment. The following are the common features of personality:

i. Personality is the pattern of collective character, behavioural, temperamental, emotional, and mental traits of an
individual.

ii. It shows how an individual acts and interacts with others when dealing with a subject matter.

iii. It shows an individual's ability to deal with people and the environment.

iv. It relates to the physical and psychological growth and development of the individual.

v. The personality traits are partially contributed to by heredity factors and partially developed through experience and
practice.

vi. It is directed towards the achievement of specific objectives.

vii. Personality influence on the behaviour of an individual.

viii. It deals with the whole person, not a part of a person.

ix. In an organizational setting, the personality

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5. Attitude

Attitude is a judgmental statement concerning objects, people, or events. It may be either favorable or
unfavorable. It reflects how one feels about something. For example, when one says "he likes his job", it
means he is expressing his attitude toward work. The genetic make-up of a child initially determines their
personality and attitudes. However, as the child begins his schooling and interacts with people, his attitudes
are influenced by the people whom he admires, respects, or fears.

"Attitudes are evaluative statements either favorable or unfavorable concerning objects, people, or events.”
Stephen P Robbins

Attitude is specific and less stable. It is specific because it concerns only objects, people, or events. It is
unstable as it can be changed on the basis of time and situation. Attitude is gained from parents, colleagues,
seniors, teachers, professionals, and reference group members. Other factors, such as personal experience,
education, media, knowledge, and environmental factors, also affect attitude. It affects individual motivation
and behaviour.
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Individuals are more willing to modify their behaviour and shape their attitude to align with the behaviour of
people whom they take as a model. This is the reason why companies have their products endorsed by
popular personalities such as leading players and film stars. Such endorsement helps to develop a positive
attitude toward their products among the public.

Components of Attitudes

Before we can understand how attitudes impact the workplace, we need to understand the components of
attitudes. The following are the components of attitude:

i. Affective Component: This component is the emotional or feeling segment of an attitude. The feeling
about objects, or people, may be positive, negative, or neutral. This part of attitude is related to the
statement, for example, in an organization, a personal report affects another person. employees is given to
the general manager. In the report, he points out that the sales staff is not performing their due
responsibilities. In such a situation, the general manager forwards a written notice to the marketing
manager to negotiate with the sales staff. It may develop a feeling of responsibility among sales staff. It can
help achieve sale target of the organization.
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ii. Behavioural Component: This component focuses on behaviour and centers on individuals acting a
certain way towards something. In other words, it shows the intention of an individual to behave in a
certain way toward an object, event, or people. It may be favorable or unfavorable. It reflects the
behavioural intention of a person in the short run or in the long run. For example, before the introduction
of new products, a report is prepared by the production department by focusing on their short-run and long
run intention. This report is submitted to top management for final decision.

iii. Cognitive Component: The cognitive component is that part of the attitude that controls how the person
understands and thinks consciously about things. This is the opinion or belief part of attitude. It also
involves the information segment of an attitude. It consists of information and beliefs about objects,
people, and events. It is related in general knowledge of a person. For example, a person says smoking is
injurious to health. Such a type of idea of a person is called the cognitive component of attitude. It
includes beliefs, models, preferences, and other aspects that shape how a person interprets the world.

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Importance of Attitude

Attitude is a judgmental statement concerning objects, people, or events. It may be favorable or unfavorable.
In an organization, attitude of the manager and employees toward the organization play important role in
performance. The following are the outcomes of a positive attitude of individuals in their performance:

i. It determines job satisfaction and a high level of job performance.

ii. It facilitates maximizing productivity.

iii. It encourage for expressing value and honor to others.

iv. It gives rise to positive and constructive feelings.

v. It helps individuals to adapt to their working environment.

vi. Individuals having a favorable judgment consider different events differently.

vii. It helps to reduce absenteeism and employee turnover.

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6. Values

Values represent an individual’s sense of what is right or wrong, good or bad, and desirable or undesirable.
They contain an element of judgment. They are stable and long lasting belief which is important to the
individual. They have both content and intensity attributes. The content attribute says that a mode of conduct
is important. The intensity attribute specifies how a mode of conduct is. All individuals have a hierarchy of
values that forms their value system. This system is identified by considering the relative importance assigned
for values such as freedom, pleasure, self-respect, honesty, obedience, and equality.

"Valves involve a specific mood of conduct or end-state of existence is personally or socially preferable to
an opposite or converse mode of conduct or end-state of existence.M. Rokeach

"Value is a concept of the desirable, an internalized recitation or standard of evaluation a person

possesses."White and Bednar

Values in the organization affect individuals’ attitudes and behaviour. They take decision to either stay or
leave the organization by considering their values. An individual might not be interested in working in an
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When employees feel that they have value and respect in the organization, they like working in the
organization for a long time. Similarly, if there is no respect for individual freedom, employees might not be
interested in working in the organization. Culture is the principal source of value. Other sources of value are
parents, teachers, peers, media, and reference groups. Values have a major influence on a person’s behaviour
and attitude and serve as broad guidelines in all situations. Some common business values are fairness,
innovation, and community involvement.

Types of Values

Milton Rokeach, a social researcher in social science, researched human values. Based on research, he
identified two basic types of values: terminal values and instrumental values.

a. Terminal Values: They refer to the goals of individuals to be achieved in their life time. They signify the
objectives of the life of a person. They are the desirable states of existence of individuals. They specify the
ultimate things the person wants to achieve through his or her behaviour. Terminal Values include things
like happiness, self-respect, family security, recognition, freedom, inner harmony, comfortable life,
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b. Instrumental Values: They are the means of achieving terminal values. Instrumental values are core
values, permanent in nature, and comprise personal characteristics and character traits. Such values are
most important and desirable. They are desirable states of existence that individuals work towards or try to
reach. Instrumental Values refer to preferable modes of behaviour and include values like honesty,
sincerity, ambition, independence, obedience, hard work, broad-mindedness, capable, cheerful, courage,
helpful, polite, etc.

Importance of Values

Values in the organization affect individuals’ attitudes and behaviour. The following are the significant
outcomes of values in organizational settings:

i. Values influence the perception of individuals.

ii. Values influence the motivation of an individual for effective performance.

iii. Values are the foundation for understanding the attitudes of individuals.

iv. Values encourage achieving organizational

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v. Values influence an individual to select appropriate types of activities.

vi. Values influence the behaviour of the individuals.

vii. Values provide for stability and uniformity in group interaction.

viii. Values bring legitimacy to the rules that govern specific activities.

7. Emotion

 The emotion is derived from the Latin word emovere, which means to stir up, agitate, or excite. Emotion is a conscious
mental reaction that is directed toward a specific object. It is a neural impulse that moves an organism to action,
prompting automatic reactive behaviour. It is accompanied by physiological changes in the body. It is a feeling that is
expressed through physiological functions such as facial expressions, faster heartbeat, and behaviours such as aggression,
crying, or covering the face with hands.

 “Emotions are intense feelings that are directed at someone or something.” Stephen P. Robbins

 "An emotion is a complex psychological state that involves three distinct components: a subjective experience, a
physiological
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 Emotions involve three components such as cognitive component, the physiological component, and the expressive
component. The cognitive component includes the conscious experience of emotions, trust, expectation, disgust,
anticipation, etc. The physiological component involves emotional excitement such as fear, anger, sadness, joy, shame etc.
The expressive component involves body language such as gaze, gestures, postures, walk, smile, etc. Emotion is an
individual's way action and reaction to an object or event. It determines individual personality and behaviour.

Features of Emotion

 Emotion is a conscious mental reaction that is directed toward a specific object. It is accompanied by physiological
changes in the body. The following are the common features of emotion:

i. It is caused by a specific event.

ii. Its effect is very brief in duration, such as seconds or minutes.

iii. It is specific and numerous in natures such as anger, fear, sadness, happiness, disgust, surprise, etc.

iv. It is usually accompanied by a distinct facial expression.

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Types of Emotions

The word 'emotion' encompasses a broad range of feelings, behaviour, and changes in the body and mind.
Many researchers studied emotions from various dimensions. William James considers the primary human
emotion types as love, fear, grief, and rage. Prominent psychologist Robert Plutchik listed the six main types
of emotions as follows: fear, joy, love, sadness, surprise, and anger. However, from an impact point of view,
emotions can be studied from two dimensions, such as positive emotion and negative emotion.

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i. Positive Emotion: This dimension of emotion emphasizes on positiveoutcome of behaviour. An

individual always expresses good feelings that will develop a better working environment. The examples
of positive emotions involve love, appreciation, happiness, hope, enthusiasm, vitality, confidence,
gratitude, patience, trust, vulnerability, optimism, and joyfulness, etc.

ii. Negative Emotion: This dimension of emotion emphasizes on negativeoutcome of behaviour. An

individual always expresses unexpected feelings that will develop a worse working environment. The
examples of negative emotion are fear, anger, guilt, depression, self-pride, jealousy, self-pity, anxiety,
envy, frustration, shame, denial, offense, regret, sadness, worry, and grief, etc.

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