ORGANIZATIONAL BEHAVIOR COMPLETE NOTES
PPT 1 — PERSONALITY AND VALUES
PURPOSE OF THIS TOPIC
Explains how personality and values affect employee behavior. Helps predict behavior,
assign jobs, and manage teams.
PERSONALITY
Stable patterns of thoughts, feelings, and behaviors that distinguish one person from
another.
Determinants: Heredity, Environment, Situation
Managerial Use: Job placement, leadership prediction, conflict reduction
PERSONALITY TRAITS
Examples: shyness, aggressiveness, ambition, loyalty
BIG FIVE PERSONALITY MODEL
1. Extraversion: Sociability and enthusiasm
2. Agreeableness: Cooperation and trust
3. Conscientiousness: Responsibility and reliability
4. Emotional Stability: Calmness under stress
5. Openness to Experience: Creativity and curiosity
VALUES
Basic beliefs about right, good, or desirable. Types: Terminal Values (end goals),
Instrumental Values (behavior to achieve goals)
PPT 2 — VALUES: FOUNDATION OF ATTITUDES AND BEHAVIOR
CONCEPT OF VALUES
Deeply held beliefs guiding actions and judgments.
VALUE SYSTEM
Hierarchy ranking values according to importance.
IMPORTANCE IN ORGANIZATIONS
Shapes culture, ethics, motivation. Managers align employee and organizational values.
ETHICS IN OB
Moral principles guiding behavior: fairness, responsibility, honesty.
PPT 3 — DECISION MAKING
DEFINITION
Selecting the best alternative among options.
STEPS
1. Identify problem 2. Identify criteria 3. Weight criteria 4. Develop alternatives 5.
Evaluate 6. Select
MODELS
Rational Decision Making: Complete info, logical, optimal choice Bounded Rationality:
Limited info, time, cognitive limits; satisfactory choice
BIASES
Overconfidence, anchoring, confirmation
PPT 4 — PERCEPTION
Process of organizing and interpreting sensory information.
Factors: Perceiver, Target, Situation
Attribution Theory: Internal vs External causes
Errors: Halo Effect, Stereotyping, Projection
PPT 5 — EMOTIONAL INTELLIGENCE
Ability to understand and manage emotions.
Components: Self-Awareness, Self-Management, Social Awareness, Relationship
Management
Importance: Stress management, relationships, leadership
PPT 6 — EMOTIONAL LABOR
Effort to display required emotions at work.
Types: Surface Acting, Deep Acting
Impact: Stress, burnout, exhaustion. Managers must support employees.
PPT 7 — EMOTIONS AND MOODS
Emotion: Short-term intense feeling (anger, joy)
Mood: Long-lasting state (sadness)
Difference: Duration and cause
PPT 8 — ORGANIZATIONAL BEHAVIOR THEORIES
Example: Social Exchange Theory — reciprocal relationships expecting rewards
PPT 9 — UNDERSTANDING PERCEPTION
Shapes interpretation, evaluation, and response. Avoid perceptual biases for fair evaluation.
PPT 10 — MOTIVATION CONCEPTS
Processes accounting for intensity, direction, persistence toward goals.
Components: Intensity, Direction, Persistence
PPT 11 — MOTIVATION THEORIES
MASLOW’S HIERARCHY OF NEEDS
Physiological → Safety → Social → Esteem → Self-Actualization
Managerial Application: Provide fair salary, safe environment, teamwork, recognition
MCGREGOR THEORY X AND THEORY Y
Theory X: Employees dislike work, need control Theory Y: Employees motivated,
participative
HERZBERG TWO-FACTOR THEORY
Hygiene Factors prevent dissatisfaction Motivators create satisfaction
MCCLELLAND NEED THEORY
nAch: Achievement nPow: Power nAff: Affiliation
Application: Assign roles based on dominant needs
Organizational Purpose: Understand behavior, design leadership, improve motivation,
productivity, and culture.