Unit-1

Organisational Behaviour
📌 Meaning of Organisational Behaviour (OB)
Organisational Behaviour (OB) is an applied field of study that examines how individuals,
groups, and structures interact and behave within an organisation.

In simple terms:

OB answers three key questions:

1.​ Why do people act the way they do at work?

2.​ How do groups and management structures affect employee behavior?
3.​ How can leaders use this understanding to improve performance and job
satisfaction?

🏗️ The 3 Levels of OB (Scope)

OB analyzes human behavior across three distinct, interconnected levels:

[ 3. Organisational Level ] --> Company Culture, Structure, Policies

│
[ 2. Group / Team Level ] --> Leadership, Teamwork, Dynamics, Conflict
│
[ 1. Individual Level ] --> Personality, Perception, Motivation

1.​ Individual Level (Micro): Focuses on single employees — their personality, values,
perception, learning capacity, and personal motivation.
2.​ Group Level (Meso): Focuses on how individuals interact in teams — leadership
styles, team communication, power dynamics, and group decision-making.
3.​ Organisational Level (Macro): Focuses on the company as a whole — corporate
culture, official structure, policies, and how the firm adapts to its external
environment.

⚙️ Core Elements of OB
Four fundamental elements shape every workplace:

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Element Description Example
1. People The workforce (individuals Employees, managers,
and groups) executing the cross-functional teams.
work.

2. Structure The formal roles, rules, and Flat organization vs. strict
hierarchy that define top-down hierarchy.
authority.

3. Technology The digital and physical Slack/Teams, AI tools,

tools provided to perform machinery, software
tasks. platforms.

4. Environment External forces operating Government regulations,

outside company borders. market shifts, economic
trends.

🎯 Primary Goals of OB
Management experts study OB to achieve four key outcomes:

●​ Describe: Systematically observe and categorise how people act under different
work conditions.​
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●​ Understand: Identify why employees react or behave in specific ways (e.g., why
turnover is high or why team morale dropped).​
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●​ Predict: Anticipate how employees will respond to future actions (e.g., predicting
resistance during a company rebrand or merger).
●​ Control / Influence: Shape workplace behavior by adapting leadership styles,
rewards, and structural changes to boost overall productivity and engagement.​
[Link]

💡 Why OB Matters in Practice

●​ Reduces Workplace Resistance: Helps managers guide teams smoothly through
policy or technology changes.​
Futurense
●​ Enhances Motivation: Applies proven psychological techniques to boost employee
engagement without relying solely on pay raises.
●​ Improves Communication & Resolves Conflict: Uncovers root causes of team
friction so leaders can build collaboration instead of hostility.
●​ Strengthens Company Culture: Builds an environment that aligns personal
employee goals with company objectives.​
Futurense
 Historical Background of Organisational
Behaviour
The development of Organisational Behaviour has evolved through several stages over time.
Each stage contributed new ideas about managing people in organisations.

1. Scientific Management (1890–1920)

Founder: Frederick Winslow Taylor

Explanation:

Taylor believed that work should be performed using scientific methods instead of traditional
practices. He focused on improving efficiency and productivity through proper planning and
standardisation.

Key Contributions:

●​ Scientific selection and training of workers.

●​ Standardisation of tools and work methods.
●​ Time and motion studies.
●​ Division of work between managers and workers.

Limitations:

●​ Ignored employees' social and emotional needs.

●​ Focused mainly on productivity.

2. Administrative Management Theory

Founder: Henri Fayol

Explanation:

Fayol concentrated on overall management functions rather than individual tasks. He

suggested that management principles can be applied to all organisations.

Fayol's Five Functions of Management:

●​ Planning
●​ Organising
●​ Commanding
●​ Coordinating
 ●​ Controlling

Contribution:

Provided a systematic approach to management and organisational administration.

3. Bureaucratic Theory
Founder: Max Weber

Explanation:

Weber proposed that organisations should operate through formal rules, clear hierarchy, and
division of labour.

Characteristics:

●​ Clear chain of command.

●​ Formal rules and regulations.
●​ Merit-based recruitment.
●​ Specialisation.

Contribution:

Improved fairness, consistency, and organisational discipline.

4. Human Relations Movement (1924–1932)

Leader: Elton Mayo

Explanation:

The Human Relations Movement emphasised that employees are motivated not only by
money but also by social relationships and recognition.

Hawthorne Studies:

Conducted at the Hawthorne Works factory in Chicago.

Findings:

●​ Employee productivity increases when workers receive attention.

●​ Social groups influence behaviour.
 ●​ Employee morale affects performance.

Contribution:

Introduced the importance of motivation, communication, and teamwork.

5. Behavioural Science Approach (1940–1960)

Explanation:

This approach applied psychology, sociology, and anthropology to understand human

behaviour at work.

Major Contributors:

●​ Abraham Maslow – Hierarchy of Needs Theory.

●​ Douglas McGregor – Theory X and Theory Y.
●​ Chris Argyris – Personality and organisational development.

Contribution:

Focused on employee motivation, leadership, job satisfaction, and organisational

development.

6. Systems Approach (1960s)

Explanation:

The Systems Approach views an organisation as an open system made up of interrelated

parts that work together to achieve common goals.

Features:

●​ Organisation interacts with its environment.

●​ Every department depends on others.
●​ Changes in one part affect the whole organisation.

Contribution:

Helped managers understand organisations as integrated systems.

7. Contingency Approach (1970s onwards)
Explanation:

The Contingency Approach states that there is no single best way to manage an
organisation. The best management style depends on the situation.

Factors Affecting Management:

●​ Technology
●​ Organisational size
●​ Environment
●​ Employee skills
●​ Nature of work

Contribution:

Encouraged flexible management practices based on organisational needs.

8. Modern Organisational Behaviour

Explanation:

Modern OB combines concepts from psychology, sociology, economics, technology, and

management to understand workplace behaviour.

Major Areas:

●​ Leadership
●​ Emotional Intelligence
●​ Organisational Culture
●​ Teamwork
●​ Diversity and Inclusion
●​ Employee Engagement
●​ Artificial Intelligence (AI) in HR
●​ Work-Life Balance

Contribution:

Helps organisations improve innovation, employee well-being, and overall performance.

Timeline of Organisational Behaviour
Period Theory Major Contributor

1890–1920 Scientific Management Frederick W. Taylor

Early 1900s Administrative Theory Henri Fayol

Early 1900s Bureaucratic Theory Max Weber

1924–1932 Human Relations Movement Elton Mayo

1940–1960 Behavioural Science Maslow, McGregor, Argyris

1960s Systems Approach Modern Management

Thinkers

1970s onwards Contingency Approach Management Researchers

Present Modern Organisational Contemporary Scholars

Behaviour

Nature of Organisational Behaviour

1. Scientific Approach

OB is based on scientific research, observation, and analysis rather than assumptions. It

uses facts and evidence to understand human behaviour.

2. Human-Oriented

The main focus of OB is on people. It studies employees' attitudes, motivation, personality,

emotions, and behaviour at work.

3. Goal-Oriented

OB aims to improve both individual performance and organisational effectiveness by aligning

employee behaviour with organisational objectives.

4. Interdisciplinary

OB draws knowledge from various disciplines such as psychology, sociology, anthropology,

economics, and management to understand workplace behaviour.

5. Dynamic in Nature
Human behaviour changes according to situations, environment, technology, and
organisational culture. Therefore, OB is flexible and continuously evolving.

6. System Approach

An organisation is viewed as a system where individuals, groups, structure, and environment

interact with each other. A change in one part affects the entire organisation.

7. Contingency Approach

There is no single best way to manage people. The appropriate management style depends
on the situation, employees, and organisational conditions.

8. Performance-Oriented

OB focuses on improving employee productivity, job satisfaction, teamwork, and

organisational performance.

Importance of Organisational Behaviour

1. Improves Employee Performance

OB helps managers understand employee behaviour, leading to better motivation, higher

productivity, and improved work quality.

2. Increases Job Satisfaction

By addressing employees' needs and expectations, OB creates a positive work environment

that enhances job satisfaction.

3. Enhances Motivation

Understanding motivational theories enables managers to encourage employees to perform

their best and achieve organisational goals.

4. Improves Communication

OB promotes effective communication between employees and management, reducing

misunderstandings and improving coordination.

5. Develops Leadership Skills

It helps managers adopt suitable leadership styles that inspire employees and build trust
within the organisation.

6. Strengthens Teamwork
OB encourages cooperation, coordination, and collaboration among employees, resulting in
stronger and more effective teams.

7. Helps in Conflict Resolution

Conflicts are common in organisations. OB provides methods to identify, manage, and

resolve conflicts constructively.

8. Supports Change Management

Employees often resist change. OB helps organisations manage change smoothly by

understanding employee reactions and encouraging acceptance.

9. Builds Positive Organisational Culture

A healthy organisational culture improves employee commitment, morale, innovation, and

overall organisational success.

10. Improves Decision-Making

Knowledge of employee behaviour helps managers make better decisions regarding

recruitment, training, motivation, performance evaluation, and employee development.

Scientific Management
Scientific Management is a theory of management developed by Frederick Winslow Taylor
in the early 20th century. It focuses on improving efficiency and productivity by using
scientific methods to perform work instead of relying on guesswork or traditional practices.

Definition

Scientific Management is the systematic study of work to determine the most efficient way
to perform a task, leading to higher productivity and better organisational performance.

Objectives of Scientific Management

●​ Increase productivity and efficiency.
●​ Reduce wastage of time, effort, and resources.
●​ Select and train workers scientifically.
●​ Improve cooperation between workers and management.
●​ Achieve maximum output at minimum cost.

Principles of Scientific Management

1. Science, Not Rule of Thumb
Replace traditional methods with scientific analysis to find the best way of doing a job.

Example: Instead of workers choosing their own methods, the organisation develops the
most efficient process.

2. Scientific Selection and Training

Employees should be selected based on their skills and trained properly to perform their jobs
efficiently.

Example: A company provides training before assigning employees to production work.

3. Cooperation Between Management and Workers

Management and employees should work together to achieve organisational goals.

Example: Managers guide employees and solve work-related problems through teamwork.

4. Division of Work and Responsibility

Management should focus on planning and supervising, while workers should concentrate
on executing the tasks.

Example: Managers prepare work schedules, and employees complete the assigned work.

Techniques of Scientific Management

1. Time Study

Measures the time required to complete a task and identifies the fastest method.

2. Motion Study

Studies workers' movements to eliminate unnecessary motions and reduce fatigue.

3. Standardisation

Uses standard tools, methods, and procedures to improve efficiency and maintain quality.

4. Functional Foremanship

Different supervisors specialise in different functions, such as quality, maintenance, and

production.

5. Differential Piece Rate System

Workers who produce more receive higher wages, encouraging better performance.
Advantages of Scientific Management
●​ Increases productivity.
●​ Reduces production costs.
●​ Improves efficiency.
●​ Better utilisation of resources.
●​ Provides scientific training to employees.
●​ Improves coordination between management and workers.

Disadvantages of Scientific Management

●​ Ignores workers' social and emotional needs.
●​ Makes work repetitive and monotonous.
●​ Workers may feel excessive pressure to meet standards.
●​ Reduces employee creativity and innovation.
●​ Can lead to conflicts if employees feel over-controlled.

Importance in Organisational Behaviour

Scientific Management influences organisational behaviour by:

●​ Improving employee performance through proper training.

●​ Establishing clear work standards.
●​ Increasing organisational efficiency.
●​ Promoting systematic planning and coordination.
●​ Helping organisations achieve their goals effectively.

Key Features (Exam Points)

●​ Developed by F.W. Taylor.
●​ Based on scientific methods.
●​ Focuses on efficiency and productivity.
●​ Emphasises training and cooperation.
●​ Introduces standardisation and work measurement.
●​ Aims to achieve maximum output with minimum effort.

Conclusion
Scientific Management is one of the earliest management theories that emphasises
efficiency, planning, and scientific methods. Although it has limitations, many of its
principles—such as standardisation, training, and performance measurement—are still used
in modern organisations to improve productivity and organisational effectiveness.

Hawthorne Studies
The Hawthorne Studies were a series of experiments conducted between 1924 and 1932
at the Hawthorne Works of the Western Electric Company in Chicago, USA. The studies
were led by Elton Mayo and his colleagues from Harvard University. These experiments
aimed to determine how different workplace conditions affect employee productivity.

The studies concluded that social and psychological factors have a greater influence on
employee performance than physical working conditions alone. These findings laid the
foundation for the Human Relations Approach in management.

Objectives of Hawthorne Studies

●​ To examine the effect of physical working conditions on productivity.
●​ To understand how employee attitudes and social relationships influence
performance.
●​ To identify factors that improve worker motivation and job satisfaction.

Major Experiments
1. Illumination Experiment

●​ Purpose: To study the effect of lighting on workers' productivity.

●​ Observation: Productivity increased even when lighting was improved or reduced.
●​ Conclusion: Employees performed better because they knew they were being
observed, not because of lighting.

2. Relay Assembly Test Room Experiment

●​ A small group of female workers was observed under different working conditions
such as:
○​ Rest breaks
○​ Shorter working hours
○​ Incentives
●​ Observation: Productivity continuously improved.
●​ Conclusion: Friendly supervision, teamwork, participation, and recognition motivated
employees more than physical conditions.

3. Interviewing Programme

●​ Thousands of employees were interviewed to understand their opinions and feelings

about work.
●​ Observation: Employees wanted to express their ideas and problems.
●​ Conclusion: Good communication and listening to employees improve morale and
satisfaction.

4. Bank Wiring Observation Room Experiment

●​ A group of male workers was observed without changing working conditions.

 ●​ Observation: Workers formed informal groups and set their own production
standards.
●​ Conclusion: Informal groups strongly influence employee behaviour and productivity.

Key Findings of Hawthorne Studies

●​ Social and psychological factors significantly affect employee performance.
●​ Recognition, appreciation, and attention improve motivation.
●​ Informal groups influence workplace behaviour.
●​ Employee participation in decision-making increases job satisfaction.
●​ Effective communication and supportive supervision improve productivity.

Hawthorne Effect
The Hawthorne Effect refers to the tendency of employees to change or improve their
behaviour simply because they know they are being observed or given special
attention.

Example:​
A teacher starts observing students closely during a class activity. The students become
more attentive and perform better because they know they are being watched.

Importance of Hawthorne Studies

●​ Introduced the Human Relations Movement.
●​ Highlighted the importance of employee motivation and morale.
●​ Improved understanding of group behaviour in organisations.
●​ Encouraged managers to focus on employee welfare and communication.
●​ Formed the basis for modern organisational behaviour.

Limitations
●​ Conducted in only one organisation.
●​ Small sample size in some experiments.
●​ Results may not apply to all workplaces.
●​ Some findings have been questioned by later researchers.

Conclusion
The Hawthorne Studies demonstrated that employees are motivated not only by money
or physical working conditions but also by social relationships, recognition,
communication, and supportive leadership. These studies remain one of the most
influential contributions to the field of Organisational Behaviour.

Exam Points (2–5 Marks)

 ●​ Conducted: 1924–1932
●​ Place: Hawthorne Works, Western Electric Company, Chicago
●​ Leader: Elton Mayo
●​ Four Experiments:
1.​ Illumination Experiment
2.​ Relay Assembly Test Room
3.​ Interviewing Programme
4.​ Bank Wiring Observation Room
●​ Main Concept: Social and psychological factors improve productivity.
●​ Hawthorne Effect: People perform better when they know they are being
observed.

Models of Organisational Behaviour

What is a Model of Organisational Behaviour?
A model of organisational behaviour (OB) is a framework that explains how managers
interact with employees and how employees behave in an organisation. It helps managers
understand, predict, and influence employee behaviour to achieve organisational goals.

There are five major models of organisational behaviour:

1. Autocratic Model

Meaning:​
The autocratic model is based on power and authority. Managers make all decisions, and
employees are expected to obey without questioning.

Characteristics:

●​ Authority is centralised.
●​ Employees have little or no participation.
●​ Strict supervision and control.
●​ Communication flows from top to bottom.

Advantages:

●​ Quick decision-making.
●​ Useful during emergencies.
●​ Clear chain of command.

Disadvantages:

●​ Low employee morale.

●​ Lack of creativity and innovation.
●​ Employees may feel dissatisfied.
Example:​
A factory where workers strictly follow the supervisor's instructions without
participating in decisions.

2. Custodial Model
Meaning:​
The custodial model is based on economic resources. Organisations provide
employees with job security, good salaries, and benefits to keep them satisfied.

Characteristics:

●​ Focus on employee welfare.

●​ Job security and financial benefits.
●​ Employees become dependent on the organisation.

Advantages:

●​ Higher job satisfaction.

●​ Reduced employee turnover.
●​ Better organisational stability.

Disadvantages:

●​ Employees may become less motivated.

●​ Dependence on benefits rather than performance.

Example:​
A company providing health insurance, retirement benefits, and bonuses to
employees.

3. Supportive Model
Meaning:​
The supportive model is based on leadership and motivation. Managers support
employees instead of controlling them.

Characteristics:

●​ Employee participation is encouraged.

●​ Open communication.
●​ Motivation through recognition and encouragement.

Advantages:

●​ Higher motivation.
●​ Improved teamwork.
●​ Better employee performance.
Disadvantages:

●​ Requires skilled managers.

●​ May not work with unmotivated employees.

Example:​
A manager regularly appreciates employees and helps them solve work-related
problems.

4. Collegial Model
Meaning:​
The collegial model is based on partnership and teamwork. Managers and employees
work together as a team.

Characteristics:

●​ Team spirit.
●​ Shared responsibility.
●​ Mutual trust and respect.
●​ Self-discipline among employees.

Advantages:

●​ High employee commitment.

●​ Better cooperation.
●​ Increased productivity.

Disadvantages:

●​ Decision-making may take more time.

●​ Requires a strong team culture.

Example:​
A software company where managers and employees jointly make decisions on
projects.

5. System Model
Meaning:​
The system model focuses on trust, commitment, and organisational culture.
Employees feel emotionally connected with the organisation and work towards
common goals.

Characteristics:

●​ Strong organisational culture.

●​ High employee engagement.
 ●​ Mutual trust.
●​ Focus on personal and organisational growth.

Advantages:

●​ High employee satisfaction.

●​ Greater innovation.
●​ Long-term organisational success.

Disadvantages:

●​ Takes time to build trust.

●​ Requires effective leadership.

Example:​
A company that encourages learning, innovation, teamwork, and employee
development.

Comparison of Organisational Behaviour

Models
Model Basis Manager's Role Employee
Response

Autocratic Power Commands Obedience

Custodial Economic Provides Benefits Security &

Resources Dependence

Supportive Leadership Supports & Participation

Motivates

Collegial Partnership Team Member Responsibility

System Trust & Culture Coach & Facilitator Commitment

Key Points to Remember
●​ Autocratic → Power and authority.
●​ Custodial → Security and employee benefits.
●​ Supportive → Leadership and motivation.
●​ Collegial → Teamwork and partnership.
●​ System → Trust, commitment, and organisational culture.

Relationship of Organisational
Behaviour with Other Disciplines
Organisational Behaviour is an interdisciplinary field because it borrows concepts
and theories from several social sciences.

1. Psychology
Meaning: Psychology is the scientific study of human behaviour and mental
processes.

Relationship with OB:

●​ Helps understand individual behaviour at work.

●​ Explains motivation, learning, personality, perception, emotions, and job
satisfaction.
●​ Assists in improving employee performance and productivity.

Example: A manager uses motivational theories to increase employee engagement.

2. Sociology
Meaning: Sociology is the study of society, social relationships, and group behaviour.

Relationship with OB:

●​ Helps understand group dynamics and teamwork.

●​ Explains organisational culture and structure.
●​ Studies communication, leadership, and conflict within groups.

Example: Team-building activities improve cooperation among employees.

3. Social Psychology
Meaning: Social Psychology studies how people's thoughts, feelings, and behaviour
are influenced by others.
Relationship with OB:

●​ Explains interpersonal relationships.

●​ Helps in communication, leadership, and attitude change.
●​ Studies decision-making in groups and conflict resolution.

Example: Employees are influenced by the behaviour of their team members.

4. Anthropology
Meaning: Anthropology is the study of human culture and social development.

Relationship with OB:

●​ Helps understand organisational culture.

●​ Supports management of workforce diversity.
●​ Explains differences in values, beliefs, and traditions among employees.

Example: A multinational company respects cultural differences among employees

from different countries.

5. Political Science
Meaning: Political Science studies power, authority, and political behaviour.

Relationship with OB:

●​ Explains power and organisational politics.

●​ Helps understand leadership, authority, and decision-making.
●​ Assists in managing conflicts and negotiations.

Example: A manager uses negotiation skills to resolve disputes between

departments.

6. Economics
Meaning: Economics studies the allocation and use of resources.

Relationship with OB:

●​ Helps understand employee incentives and rewards.

●​ Supports decision-making regarding wages, productivity, and resource
utilisation.
●​ Explains how economic conditions affect employee behaviour.

Example: Performance-based incentives motivate employees to work efficiently.

7. Management
Meaning: Management is the process of planning, organising, directing, and
controlling organisational activities.

Relationship with OB:

●​ OB provides knowledge about employee behaviour to managers.

●​ Helps improve leadership, communication, motivation, and decision-making.
●​ Supports effective management practices.

Example: Managers use OB principles to create a positive work environment.

Importance of Studying Other Disciplines in OB

●​ Improves understanding of human behaviour.
●​ Enhances leadership and managerial effectiveness.
●​ Increases employee motivation and job satisfaction.
●​ Improves teamwork and communication.
●​ Helps manage organisational change and conflict.
●​ Builds a positive organisational culture.
●​ Increases organisational productivity and effectiveness.

Conclusion
Organisational Behaviour is an interdisciplinary field that integrates knowledge from
Psychology, Sociology, Social Psychology, Anthropology, Political Science,
Economics, and Management. These disciplines help managers understand employee
behaviour, improve workplace relationships, increase motivation, and achieve
organisational goals effectively.

Perception in Organisational Behaviour

Perception: Meaning
Perception is the process through which an individual selects, organises, and
interprets information from the environment to give it meaning. In organisational
behaviour, perception influences how employees understand situations, interact with
others, and make decisions at the workplace.

Definition:​
Perception is the psychological process by which individuals interpret sensory
information to understand their surroundings and respond accordingly.
Characteristics of Perception
●​ It is a psychological and cognitive process.
●​ It is subjective, so different people may perceive the same situation differently.
●​ It involves selection, organisation, and interpretation of information.
●​ It is influenced by past experiences, values, attitudes, expectations, and
emotions.
●​ It affects decision-making, communication, motivation, and interpersonal
relationships.

Factors Affecting Perception

A. Factors Related to the Perceiver

●​ Attitude
●​ Personality
●​ Motives and interests
●​ Experience
●​ Expectations

B. Factors Related to the Target

●​ Appearance
●​ Behaviour
●​ Communication style
●​ Novelty
●​ Background

C. Situational Factors

●​ Time
●​ Work environment
●​ Social setting
●​ Organisational culture

Importance of Perception

Helps managers make effective decisions.

●​ Improves communication among employees.
●​ Influences employee motivation and job satisfaction.
●​ Supports performance evaluation.
●​ Helps in resolving workplace conflicts.
●​ Builds better teamwork and cooperation.
●​ Assists in leadership and employee management.
Perceptual Errors (Barriers to Accurate Perception)
1.​ Stereotyping – Judging a person based on the group they belong to.
2.​ Halo Effect – Forming an overall impression based on one positive
characteristic.
3.​ Horn Effect – Forming a negative impression because of one unfavourable
trait.
4.​ Selective Perception – Noticing only information that matches one's beliefs.
5.​ Projection – Assuming others have the same feelings or characteristics as
oneself.
6.​ Self-serving Bias – Taking credit for success while blaming external factors for
failure.

Ways to Improve Perception

●​ Gather complete and accurate information.
●​ Avoid personal bias and stereotypes.
●​ Listen actively to others.
●​ Encourage feedback and open communication.
●​ Be objective while evaluating people.
●​ Increase awareness through training and experience.

Process
The perception process consists of the following stages:

1. Environmental Stimulus

A person receives information from the surroundings through the five senses (sight,
hearing, touch, smell and taste).

Example: A manager gives feedback to an employee.

2. Attention (Selection)

The individual pays attention only to certain stimuli while ignoring others. This
depends on interest, needs and expectations.

Example: An employee notices only the positive comments in the manager's

feedback.

3. Organisation

The selected information is arranged and grouped into meaningful patterns using
past experiences and knowledge.

Example: The employee connects the feedback with previous performance reviews.
4. Interpretation

The organised information is interpreted to assign meaning. Different people may

interpret the same situation differently.

Example: One employee sees feedback as motivation, while another views it as

criticism.

5. Response (Behaviour)

Based on the interpretation, the individual reacts or behaves accordingly.

Example: The motivated employee improves performance, whereas the other may
lose confidence.

Diagram of Perception Process

Stimulus → Attention (Selection) → Organisation → Interpretation →
Behaviour/Response

Characteristic
1. Psychological Process

Perception takes place in the mind and involves thinking and understanding.

2. Subjective

Different individuals perceive the same situation differently.

3. Selective

People do not notice every stimulus; they focus only on what they consider
important.

4. Influenced by Experience

Past experiences, education and learning affect perception.

5. Dynamic

Perception changes with time, knowledge and new experiences.

6. Goal-Oriented

People often perceive information according to their needs and objectives.

7. Influenced by Internal and External Factors

Internal factors include attitudes, personality, motivation and emotions. External

factors include size, intensity, novelty and repetition of the

Importance
1. Better Decision-Making

Correct perception helps managers make fair and effective decisions.

2. Effective Communication

Understanding how others perceive messages reduces misunderstandings.

3. Employee Motivation

Positive perception of rewards and recognition increases motivation and job

satisfaction.

4. Performance Evaluation

Managers who perceive employees accurately can conduct fair performance

appraisals.

5. Conflict Management

Understanding different perceptions helps resolve workplace conflicts.

6. Teamwork

Positive perception among team members improves cooperation and trust.

7. Leadership Effectiveness

Successful leaders understand employees' perceptions and respond appropriately.

8. Job Satisfaction

Employees with positive perceptions of their work environment are generally more
satisfied and committed.

9. Organisational Success

Accurate perception improves productivity, employee relationships and overall

organisational performance.
Examples of Perception in an Organisation
●​ Two employees receive the same feedback but react differently.
●​ One employee sees a transfer as a promotion opportunity, while another sees it
as punishment.
●​ A manager interprets an employee's silence as lack of interest, whereas the
employee is simply shy.

Key Points for Examination

●​ Perception is the process of selecting, organising and interpreting information.
●​ It is subjective and differs from person to person.
●​ The perception process has five stages: Stimulus, Attention, Organisation,
Interpretation and Response.
●​ Perception influences decision-making, communication, leadership, motivation
and conflict resolution.
●​ Personal, situational and target factors affect perception.

Short Conclusion
Perception plays a vital role in Organisational Behaviour because it influences how
employees understand people, situations and events at work. Accurate perception
leads to effective communication, better decisions, stronger teamwork and improved
organisational performance, while incorrect perception may result in
misunderstandings, conflicts and poor decisions.

Perceptual Selectivity and Perceptual

Organisation
Perceptual Selectivity Meaning
Perceptual selectivity is the process by which an individual selects only certain
information from the environment while ignoring the rest. Since people cannot pay
attention to everything around them, they focus only on information that appears
important or relevant.

Definition

Perceptual selectivity refers to the tendency of people to notice, interpret, and

remember information that is meaningful to them, while filtering out other stimuli.

●​
 ●​ Needs and Motives: People pay more attention to information that satisfies
their needs.
●​ Interests: Individuals notice things related to their personal interests.
●​ Past Experience: Previous experiences influence what people observe.
●​ Expectations: People often perceive what they expect to see.
●​ Personality: Different personalities interpret the same situation differently.
●​ Intensity and Size of Stimulus: Bright colours, loud sounds, or large objects
attract more attention.

Example

A sales manager notices customer complaints more carefully than other office
conversations because customer satisfaction is important for achieving sales targets.

Perceptual Organisation
Meaning

Perceptual organisation is the process of arranging and interpreting selected

information into meaningful patterns so that people can understand their
surroundings.

Definition

Perceptual organisation is the tendency of individuals to organise separate pieces of

information into a complete and meaningful picture.

Principles of Perceptual Organisation

1.​ Figure-Ground Principle: People distinguish the main object (figure) from the
background.
2.​ Proximity Principle: Objects that are close together are perceived as a group.
3.​ Similarity Principle: Similar objects are grouped together.
4.​ Closure Principle: People mentally fill in missing information to complete a
picture.
5.​ Continuity Principle: Individuals prefer smooth and continuous patterns rather
than disconnected ones.

Importance in Organisational Behaviour

●​ Helps employees understand complex situations.

●​ Improves problem-solving and decision-making.
●​ Enhances teamwork through better understanding of others.
●​ Supports effective communication.
●​ Reduces misunderstandings and workplace conflicts.

Example
A manager evaluates an employee's overall performance by considering attendance,
work quality, teamwork, and behaviour together instead of judging only one aspect.

Difference Between Perceptual Selectivity and

Perceptual Organisation

Perceptual Selectivity Perceptual Organisation

Selects relevant information from the Organises selected information into

environment. meaningful patterns.

First stage of perception. Second stage of perception.

Filters unnecessary information. Gives meaning to the selected

information.

Focuses on attention. Focuses on interpretation.

Conclusion
Perceptual selectivity and perceptual organisation are important concepts in
Organisational Behaviour. Perceptual selectivity helps employees and managers
focus on relevant information, while perceptual organisation enables them to interpret
that information correctly. Together, these processes improve communication,
decision-making, teamwork, and overall organisational effectiveness.

Organisational Behaviour Notes

Personality: Meaning and Development

Personality – Meaning
Personality refers to the unique combination of thoughts, emotions, attitudes, habits,
and behaviours that make an individual different from others. It influences how a
person thinks, feels, communicates, and behaves in different situations, especially at
the workplace.

Definition:​
According to Gordon Allport, "Personality is the dynamic organization within the
individual of those psychophysical systems that determine his unique adjustment to
the environment."

Key Characteristics of Personality

●​ It is unique for every individual.

●​ It develops over time and is relatively stable.
●​ It influences behaviour and decision-making.
●​ It includes both physical and psychological traits.
●​ It affects interpersonal relationships and work performance.

Personality Development Meaning

Personality development is the continuous process of improving an individual's
behaviour, communication skills, attitude, confidence, emotional intelligence, and
overall character. It helps a person become more effective in both personal and
professional life.

In organisational behaviour, personality development improves teamwork, leadership,

motivation, and job performance.

Factors Affecting Personality Development

1. Heredity (Biological Factors)

●​ Traits inherited from parents.

●​ Includes physical appearance, intelligence, temperament, and emotional
stability.

2. Environment

●​ Family, school, friends, workplace, and society shape personality.

●​ Positive surroundings encourage confidence and good behaviour.

3. Culture

●​ Customs, values, beliefs, and traditions influence attitudes and behaviour.

●​ Different cultures develop different personality traits.

4. Education

●​ Education improves knowledge, communication, discipline, and confidence.

 ●​ It develops logical thinking and decision-making ability.

5. Life Experiences

●​ Successes, failures, challenges, and achievements help shape personality.

●​ Experience teaches adaptability and emotional maturity.

6. Situation

●​ People's behaviour may change according to different situations.

●​ For example, a person may behave differently at home and in the workplace.

Importance of Personality in Organisational Behaviour

●​ Improves communication skills.
●​ Builds leadership qualities.
●​ Enhances teamwork and cooperation.
●​ Increases employee motivation and confidence.
●​ Helps in conflict management.
●​ Improves job performance and productivity.
●​ Supports career growth and organisational success.
●​ Improve communication skills.
●​ Develop positive thinking.
●​ Build self-confidence.
●​ Enhance emotional intelligence.
●​ Learn time management.
●​ Practice leadership and teamwork.
●​ Accept feedback and continuously learn.
●​ Maintain a positive attitude and professional behaviour.

Summary
Personality is the unique pattern of behaviour, thoughts, and emotions that
distinguishes one individual from another. Personality development is a lifelong
process influenced by heredity, environment, culture, education, and life experiences.
In organisational behaviour, a well-developed personality contributes to effective
communication, leadership, teamwork, higher productivity, and overall organisational
success.

Personality Traits
Meaning of Personality
Personality refers to the unique combination of thoughts, feelings, attitudes, and behaviours
that make an individual different from others. In Organisational Behaviour, personality helps
explain how employees behave, communicate, make decisions, and perform at work.

Definition:​
According to Gordon Allport, "Personality is the dynamic organization within the individual of
those psychophysical systems that determine his unique adjustment to the environment."

Characteristics
Personality traits are consistent characteristics that influence a person's behaviour in
different situations.

1. Openness to Experience
Meaning:​
Openness refers to a person's willingness to learn new ideas, accept change, and explore
creative solutions.

Characteristics:

●​ Creative and imaginative

●​ Curious to learn
●​ Open to new experiences
●​ Flexible in thinking

Example:​
An employee who enjoys learning new software and adapts quickly to technological
changes.

Importance in Organisation:

●​ Encourages innovation
●​ Helps in problem-solving
●​ Supports organisational change

2. Conscientiousness
Meaning:​
Conscientiousness is the tendency to be responsible, organised, disciplined, and
dependable.

Characteristics:

●​ Hardworking
●​ Punctual
●​ Goal-oriented
●​ Self-disciplined
Example:​
An employee who completes tasks before deadlines and maintains high-quality work.

Importance in Organisation:

●​ Improves productivity
●​ Increases reliability
●​ Leads to better job performance

3. Extraversion
Meaning:​
Extraversion refers to being outgoing, energetic, and sociable.

Characteristics:

●​ Friendly
●​ Confident
●​ Talkative
●​ Enjoys teamwork

Example:​
A sales executive who confidently communicates with customers.

Importance in Organisation:

●​ Improves teamwork
●​ Enhances leadership
●​ Builds strong customer relationships

4. Agreeableness
Meaning:​
Agreeableness is the tendency to be kind, cooperative, and supportive toward others.

Characteristics:

●​ Helpful
●​ Trustworthy
●​ Respectful
●​ Caring

Example:​
A team member who willingly helps colleagues complete projects.

Importance in Organisation:

●​ Reduces workplace conflicts

 ●​ Builds teamwork
●​ Creates a positive work environment

5. Emotional Stability (Low Neuroticism)

Meaning:​
Emotional stability is the ability to remain calm, confident, and emotionally balanced under
pressure.

Characteristics:

●​ Handles stress well

●​ Positive attitude
●​ Emotionally mature
●​ Calm during difficult situations

Example:​
A manager who remains composed during a business crisis.

Importance in Organisation:

●​ Better decision-making
●​ Reduces stress
●​ Improves employee morale

The Big Five Personality Traits (OCEAN Model)

Trait Meaning Organisational Benefit

O – Openness Creative and willing to learn Innovation and adaptability

C – Conscientiousness Responsible and disciplined High performance and

reliability

E – Extraversion Outgoing and energetic Leadership and

communication

A – Agreeableness Cooperative and friendly Teamwork and harmony

 N – Neuroticism Emotional instability (low High neuroticism may
emotional stability) increase stress; low
neuroticism improves
emotional balance

Importance of Personality Traits

●​ Helps in employee selection and recruitment.
●​ Improves teamwork and communication.
●​ Enhances leadership effectiveness.
●​ Increases job satisfaction and employee performance.
●​ Assists managers in understanding employee behaviour.
●​ Reduces workplace conflicts.
●​ Supports career development and training.

Advantages of Understanding Personality Traits

●​ Better employee placement.
●​ Improved motivation.
●​ Higher productivity.
●​ Strong interpersonal relationships.
●​ Effective conflict management.
●​ Better organisational performance.

Limitations
●​ Personality alone cannot predict behaviour.
●​ Behaviour also depends on the work environment.
●​ Personality may change gradually with experience.
●​ Different situations may influence individual behaviour.

Here are brief, exam-friendly notes on Determinants of Personality in Organisational

Behaviour with clear explanations.

Determinants of Personality
Meaning of Personality
Personality refers to the unique pattern of thoughts, emotions, attitudes, and behaviours that
makes an individual different from others. In an organisation, personality influences how
employees communicate, make decisions, solve problems, and interact with colleagues.
Determinants of Personality
The major determinants of personality are as follows:

1. Heredity (Biological Factors)

Heredity refers to the characteristics inherited from parents through genes. These
characteristics form the basic foundation of an individual's personality.

Explanation:

●​ Determines physical appearance, height, body structure, and intelligence.

●​ Influences temperament, emotional stability, and energy level.
●​ Provides the natural potential that develops over time.

Example: A person may naturally be calm, energetic, or confident because of inherited

traits.

2. Environment

Environment includes all external factors that influence a person's growth and behaviour
from childhood onwards.

Explanation:

●​ Family teaches values, discipline, and social behaviour.

●​ School and education develop knowledge, communication, and confidence.
●​ Friends and society influence attitudes, beliefs, and habits.
●​ Workplace culture shapes professional behaviour and work ethics.

Example: An employee working in a positive environment usually develops confidence,

cooperation, and responsibility.

3. Culture

Culture refers to the beliefs, customs, traditions, values, and norms shared by a group or
society.

Explanation:

●​ Shapes an individual's behaviour and way of thinking.

●​ Influences communication style, ethics, and decision-making.
●​ Different cultures produce different personality traits and work behaviours.

Example: Employees from collectivist cultures often prefer teamwork, while those from
individualistic cultures may value personal achievement.

4. Family
Family is the first institution where personality begins to develop.

Explanation:

●​ Parents influence attitudes, discipline, confidence, and emotional development.

●​ Family values affect honesty, responsibility, and respect for others.
●​ A supportive family helps build self-esteem and positive behaviour.

Example: Children raised in encouraging families often become confident and responsible
adults.

5. Socialisation

Socialisation is the process through which individuals learn acceptable behaviour by

interacting with others.

Explanation:

●​ Develops communication and interpersonal skills.

●​ Teaches social norms, cooperation, and teamwork.
●​ Helps individuals adjust to different situations and organisational cultures.

Example: Employees learn workplace behaviour by interacting with colleagues and

managers.

6. Situational Factors

Situations or circumstances can temporarily influence an individual's behaviour.

Explanation:

●​ Stress, deadlines, promotions, rewards, or conflicts affect behaviour.

●​ People may react differently in different situations.
●​ Behaviour changes according to organisational demands.

Example: A normally calm employee may become anxious during an important

presentation.

7. Learning

Learning is the process of gaining knowledge, skills, and experience over time.

Explanation:

●​ Experience changes attitudes and behaviour.

●​ Training improves confidence and work performance.
●​ Continuous learning helps employees develop positive personality traits.

Example: Leadership training can make an employee more confident and effective.
Summary
Personality is shaped by a combination of heredity, environment, culture, family,
socialisation, situational factors, and learning. In organisations, understanding these
determinants helps managers assign suitable roles, improve teamwork, motivate employees,
and create a productive work environment.

Key Points for Examination

●​ Personality is influenced by both internal (heredity) and external (environmental)
factors.
●​ No single factor determines personality; it develops through the interaction of many
influences.
●​ Personality affects job performance, communication, leadership, motivation, and
teamwork.
●​ Understanding personality helps organisations manage employees more effectively.

Attitudes
Meaning of Attitudes
An attitude is a person's positive or negative feeling, opinion, or evaluation about a person,
object, event, or situation. In Organisational Behaviour (OB), attitude refers to how
employees think and feel about their job, colleagues, supervisors, and the organisation.
These attitudes influence their behaviour, performance, and decision-making at the
workplace.

In simple words, attitude is a mental state that reflects how a person reacts to different
situations. A positive attitude usually leads to better teamwork, higher productivity, and job
satisfaction, while a negative attitude may result in poor performance, conflicts,
absenteeism, and low morale.

Definitions
●​ Gordon Allport: "An attitude is a mental and neural state of readiness, organised
through experience, exerting a directive influence upon an individual's response to all
objects and situations."
●​ Stephen P. Robbins: "Attitudes are evaluative statements or judgments concerning
people, objects, or events."

Characteristics of Attitudes
●​ Attitudes are learned through experience and interaction.
●​ They can be positive, negative, or neutral.
 ●​ They influence a person's behaviour and decision-making.
●​ Attitudes are not directly visible but can be understood through actions and
responses.
●​ They may change over time due to experience, education, or organisational
environment.

Components of Attitude
Attitude consists of three main components, known as the ABC Model:

1. Cognitive Component (Thinking)

●​ Refers to a person's beliefs, knowledge, or opinions about something.

●​ Example: An employee believes that the organisation provides good career
opportunities.

2. Affective Component (Feeling)

●​ Refers to a person's emotions or feelings towards a person, job, or organisation.

●​ Example: An employee feels proud and happy to work in the company.

3. Behavioural Component (Action)

●​ Refers to the way a person intends to behave based on their attitude.

●​ Example: A satisfied employee works sincerely, cooperates with colleagues, and
follows organisational rules.

Importance of Attitudes in Organisational Behaviour

●​ Improves employee performance and productivity.
●​ Increases job satisfaction and organisational commitment.
●​ Promotes teamwork and healthy workplace relationships.
●​ Reduces absenteeism and employee turnover.
●​ Helps managers understand employee behaviour and improve motivation.

Examples of Attitudes in the Workplace

●​ Positive attitude towards work leads to punctuality and dedication.
●​ Positive attitude towards colleagues improves cooperation.
●​ Negative attitude towards management may reduce motivation.
●​ Positive attitude towards organisational goals increases commitment.

Conclusion
Attitude is an essential concept in Organisational Behaviour because it influences how
employees think, feel, and behave at work. Organisations that encourage positive attitudes
through effective leadership, motivation, and a healthy work environment can achieve higher
productivity, employee satisfaction, and long-term success.

Attitude: Components and Functions of Attitude

Meaning of Attitude
An attitude is a learned tendency to think, feel, and behave in a particular way toward a
person, object, event, or situation. In organisational behaviour, employee attitudes influence
job performance, motivation, teamwork, and decision-making.

Example: An employee who has a positive attitude toward the organisation is more likely to
work sincerely and cooperate with colleagues.

Components of Attitude
Attitude has three main components, known as the ABC Model of Attitude.

1. Cognitive Component (Thinking)

●​ Refers to a person's beliefs, knowledge, opinions, and perceptions about
something.
●​ It is based on facts, information, and experiences.

Example:​
An employee believes that the company provides excellent career growth opportunities.

Key Points:

●​ Based on knowledge and beliefs.

●​ Influences how people think about a situation.
●​ Forms the foundation of attitude.

2. Affective Component (Feeling)

●​ Refers to a person's emotions and feelings toward an object, person, or event.
●​ It determines whether a person likes or dislikes something.

Example:​
An employee feels happy and proud to work in a supportive organisation.

Key Points:

●​ Based on emotions.
●​ Can be positive or negative.
●​ Strongly affects employee satisfaction.
3. Behavioural Component (Action)
●​ Refers to the intention or actual behaviour of a person based on their attitude.
●​ It shows how an individual is likely to act.

Example:​
An employee with a positive attitude arrives on time, completes tasks sincerely, and helps
coworkers.

Key Points:

●​ Represents actual behaviour.

●​ Reflects attitude in actions.
●​ Influences workplace performance.

Diagram of Components of Attitude

ATTITUDE

┌─────────────┼─────────────┐

│ │ │

Cognitive Affective Behavioural

(Thinking) (Feeling) (Action)

Beliefs Emotions Behaviour

Knowledge Likes/Dislikes Performance

Functions of Attitude
Attitudes perform several important functions in an organisation.

1. Knowledge Function
●​ Helps individuals understand and interpret the environment.
●​ Makes decision-making easier by organising information.

Example:​
An employee trusts company policies because they understand their benefits.

Importance:

●​ Reduces confusion.
 ●​ Helps in solving workplace problems.

2. Utilitarian (Adjustment) Function

●​ Helps people gain rewards and avoid punishment.
●​ Encourages behaviour that provides benefits.

Example:​
Employees maintain punctuality to receive incentives and promotions.

Importance:

●​ Improves performance.
●​ Encourages positive workplace behaviour.

3. Value-Expressive Function
●​ Allows individuals to express their personal values, beliefs, and personality.
●​ Gives employees an opportunity to show what they stand for.

Example:​
An employee actively supports ethical business practices because honesty is their personal
value.

Importance:

●​ Builds self-respect.
●​ Increases commitment to organisational values.

4. Ego-Defensive Function
●​ Protects a person's self-esteem and reduces anxiety or insecurity.
●​ Helps individuals defend themselves against criticism or failure.

Example:​
An employee who does not receive a promotion may believe the selection process was
unfair to protect their self-confidence.

Importance:

●​ Reduces stress.
●​ Protects self-image.

Importance of Positive Attitude in Organisations

●​ Improves job satisfaction.

 ●​ Increases employee motivation.
●​ Enhances teamwork and cooperation.
●​ Reduces absenteeism and employee turnover.
●​ Improves productivity and performance.
●​ Creates a positive work environment.
●​ Strengthens organisational commitment.

Summary Table

Component/Function Meaning Example

Cognitive Beliefs and knowledge Employee believes the

company offers good career
opportunities.

Affective Feelings and emotions Employee enjoys working in

the organisation.

Behavioural Actions and behaviour Employee works sincerely

and helps colleagues.

Knowledge Function Helps understand the Understanding company

environment policies.

Utilitarian Function Gains rewards and avoids Working hard for promotion.
punishment

Value-Expressive Expresses personal values Supporting ethical practices.

Function

Ego-Defensive Function Protects self-esteem Justifying failure to reduce

disappointment.

Exam Points (5 Marks)

 ●​ Attitude is a learned tendency to respond positively or negatively toward people,
objects, or situations.
●​ Components of Attitude: Cognitive (Thinking), Affective (Feeling), Behavioural
(Action).
●​ Functions of Attitude: Knowledge, Utilitarian (Adjustment), Value-Expressive, and
Ego-Defensive.
●​ Positive attitudes improve employee satisfaction, teamwork, productivity, and
organisational effectiveness.

Memory Tip:​
ABC = Attitude Components

●​ A = Affective (Feeling)
●​ B = Behavioural (Action)
●​ C = Cognitive (Thinking)

Functions Memory Trick: KUVE

●​ K – Knowledge
●​ U – Utilitarian (Adjustment)
●​ V – Value-Expressive
●​ E – Ego-Defensive

Write to make a notes in brief with clear explanation of components, factors influencing attitude
formation in organisational behaviour subject

Factors Influencing Attitude Formation

Attitudes are developed over time through learning and experiences. The major factors are:

1. Family Influence
●​ Family is the first source of learning.
●​ Parents and family members shape values, beliefs, and behaviour.
Example: A child raised in a disciplined family develops a responsible attitude.

2. Education
●​ Schools and colleges influence thinking, ethics, and personality.
●​ Education develops logical reasoning and positive behaviour.
Example: Professional education promotes honesty and teamwork.

3. Personal Experience
●​ Successes and failures strongly affect attitudes.
 ●​ Positive experiences create positive attitudes, while negative experiences may create
negative attitudes.
Example: An employee receiving appreciation develops a positive attitude towards work.

4. Social and Cultural Environment

●​ Society, culture, traditions, and social values influence attitudes.
●​ Different cultures promote different beliefs and behaviours.
Example: A culture that values teamwork encourages cooperative attitudes.

5. Peer Group
●​ Friends, colleagues, and coworkers influence opinions and behaviour.
●​ People often adopt attitudes similar to their peer group.
Example: A hardworking team motivates new employees to work sincerely.

6. Organisational Environment
●​ Company policies, leadership, work culture, rewards, and communication affect
employees' attitudes.
Example: Fair promotion policies improve employee morale and commitment.

7. Media and Technology

●​ Television, newspapers, social media, and the internet influence people's opinions and
beliefs.
Example: Positive company reviews on social media improve job seekers' attitudes toward the
organisation.

8. Economic Conditions
●​ Salary, job security, inflation, and employment opportunities influence attitudes.
Example: Employees with stable jobs usually have a more positive attitude toward their
organisation.

9. Personality
●​ Individual traits such as optimism, confidence, emotional stability, and self-esteem affect
attitude formation.
Example: Optimistic employees handle workplace challenges positively.

10. Motivation and Rewards

●​ Recognition, appreciation, incentives, and promotions encourage positive attitudes.
Example: Employees who receive rewards for good performance become more committed to
their work.