Organizational Behavior Complete Notes
PPT 1 — Personality and Values
Purpose of This Topic
This section explains how personality and values affect employee behavior in
organizations. It helps predict behavior, assign suitable jobs, and manage
teams effectively.
Personality
Personality refers to the stable patterns of thoughts, feelings, and behaviors
that distinguish one person from another.
Determinants: Heredity, Environment, Situation
Managerial Use: Understanding personality helps managers place
employees in suitable roles, predict leadership potential, and reduce
interpersonal conflicts.
Personality Traits
Traits are consistent characteristics describing behavior. Examples include
shyness, aggressiveness, ambition, and 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
Values are basic beliefs about what is right, good, or desirable. They
influence attitudes, decisions, and workplace behavior.
Types: Terminal Values (desired end goals), Instrumental Values (preferred
modes of behavior to reach goals)
PPT 2 — Values: Foundation of Attitudes and Behavior
Concept of Values
Values are deeply held beliefs that guide actions and judgments.
Value System
A value system is a hierarchy ranking values according to importance.
Different individuals prioritize values differently.
Importance in Organizations
Values shape organizational culture, ethical behavior, and employee
motivation. Managers ensure alignment between employee and
organizational values.
Ethics in Organizational Behavior
Ethics refers to moral principles guiding behavior, including fairness,
responsibility, and honesty.
PPT 3 — Decision Making
Definition
Decision making is the process of selecting the best alternative among
available options.
Steps
1. Identify the problem
2. Identify decision criteria
3. Allocate weight to criteria
4. Develop alternatives
5. Evaluate alternatives
6. Select the best alternative
Models
Rational Decision Making assumes complete information and logical
evaluation for an optimal choice. Bounded Rationality considers limitations of
time, information, and cognition; often leading to satisfactory rather than
optimal decisions.
Decision Biases
Common biases include overconfidence, anchoring, and confirmation bias.
PPT 4 — Perception
Perception is the process through which individuals organize and interpret
sensory information. Different people may interpret the same situation
differently.
Factors Influencing Perception
Perceiver: personality, attitudes, motives
Target: appearance, behavior
Situation: social context, timing
Attribution Theory
Explains how people determine causes of behavior. - Internal Attribution:
cause comes from personal traits - External Attribution: cause comes from
environmental factors
Common Perceptual Errors
Halo Effect: judging based on a single positive trait
Stereotyping: judging based on group characteristics
Projection: assuming others think like oneself
PPT 5 — Emotional Intelligence
Ability to understand and manage emotions effectively.
Components
Self-Awareness: recognizing personal emotions
Self-Management: controlling emotional responses
Social Awareness: understanding others’ emotions
Relationship Management: managing interactions and relationships
Importance
High emotional intelligence helps manage stress, build relationships, and
develop effective leadership.
PPT 6 — Emotional Labor
Effort employees make to display required emotions during work
interactions.
Types of Emotional Acting
Surface Acting: displaying emotions not genuinely felt
Deep Acting: trying to actually feel required emotions
Impact
Excessive emotional labor can cause stress, burnout, and emotional
exhaustion. Managers should support employees to reduce strain.
PPT 7 — Emotions and Moods
Emotion
Short-term intense feeling caused by specific events. Examples: anger, joy,
fear.
Mood
Long-lasting emotional state without a specific trigger. Example: feeling sad
all day.
Difference
Emotion Mood
Short duration Long duration
Specific cause Often unclear cause
PPT 8 — Organizational Behavior Theories
Theories explain how employees interact and behave in organizations.
Example: Social Exchange Theory — relationships based on reciprocal
exchanges of effort for rewards like recognition, salary, and promotion.
PPT 9 — Understanding Perception
Perception shapes how employees interpret events, evaluate coworkers, and
respond to managers. Managers must avoid perceptual biases for fair
evaluation.
PPT 10 — Motivation Concepts
Motivation is the process accounting for an individual’s intensity, direction,
and persistence toward a goal.
Components: - Intensity: level of effort - Direction: effort aligned with
organizational goals - Persistence: duration of effort over time
PPT 11 — Motivation Theories
Maslow’s Hierarchy of Needs
Five hierarchical levels: Physiological → Safety → Social → Esteem → Self-
Actualization
Managerial Application: Provide fair salary, safe environment, teamwork
opportunities, and recognition.
McGregor Theory X and Theory Y
Theory X: employees dislike work, need strict control; authoritarian
management
Theory Y: employees are self-motivated; participative management
Herzberg Two-Factor Theory
Hygiene Factors: prevent dissatisfaction but do not motivate (salary,
policies, working conditions)
Motivators: create job satisfaction and motivation (achievement,
recognition, responsibility)
McClelland Need Theory
Need for Achievement (nAch): desire to accomplish challenging goals
Need for Power (nPow): desire to influence and control others
Need for Affiliation (nAff): desire for social relationships
Application: Assign roles according to dominant needs (high achievement →
challenging tasks, high affiliation → teamwork roles)
Overall Organizational Purpose
These OB concepts help organizations understand employee behavior,
design effective leadership strategies, improve motivation, increase
productivity, and build a strong organizational culture.