MODULE – 02

PERSONALITY

Introduction to Personality
Meaning of Personality
Personality refers to the unique and consistent pattern of thoughts, feelings, and behaviors
that an individual displays in different situations. It explains how a person thinks, reacts, and
interacts with others, and it develops gradually through experiences, learning, and the
environment.

Nature / Characteristics of Personality

 Personality is Unique
Every person is different. No two people behave or think in exactly the same way.
This uniqueness makes individuals special and identifiable

 Personality is Relatively Stable

A person’s behaviour and characteristics do not change frequently.
People usually behave in similar ways across different situations.
Example: A calm person stays calm in most situations.

 Personality Develops Over Time

Personality is not fixed at birth.
It grows and changes slowly through family influence, experiences, culture, education, and
social learning.

 Personality Influences Behaviour

How a person speaks, reacts, works, and communicates is strongly influenced by their
personality.
Example: An introvert prefers quiet tasks, while an extrovert enjoys interacting with people.

 Personality is Shaped by Internal and External Factors

Internal factors include values, emotions, beliefs, and motives.
External factors include family, culture, society, environment, and life experiences.
Both together form the complete personality of a person.

Importance of Personality in Organizational Behaviour

 i. Helps Understand Employee Behaviour
Managers can understand why employees behave differently even in the same situation.
This helps create a better work environment.
Example: Some employees welcome challenges; others fear them.

ii. Helps Predict Job Performance

Personality helps match the right person to the right job.
Examples:
 Extroverts → Good at sales and customer interaction
 Detail-oriented people → Suitable for accounting and analysis
 Creative people → Best for marketing and advertising
This improves performance and reduces mistakes.

iii. Improves Communication

Different personalities prefer different communication styles.
Understanding personality helps managers communicate in a way the employee understands
best.
Example:
 Introverts prefer written instructions.
 Extroverts prefer face-to-face discussions.

iv. Reduces Workplace Conflicts

Conflicts often happen because people think and react differently.
Understanding personality helps reduce misunderstandings and promotes harmony.
Example:
A calm personality and an aggressive personality may clash — understanding this helps
managers handle both effectively.

v. Helps in Identifying and Developing Leaders

Strong leadership traits such as confidence, emotional stability, discipline, and decision-
making ability come from personality.
Organizations use personality assessments to find future leaders.

vi. Builds Effective Teams

A good team has a mix of personalities — creative, analytical, organized, expressive, etc.
Such diversity makes teams stronger.
Example:
One person generates ideas, another person plans, another executes — team becomes
balanced.

Determinants of Personality
Personality is shaped by several internal and external factors. The important determinants of
personality are:

1. Heredity
Heredity refers to the traits that a person receives from their parents at birth.
It includes physical features, temperament, energy level, and basic intelligence.
Heredity provides the initial foundation on which personality is built.

2. Environment
Environment includes everything a person experiences after birth such as:
 Family background
 Culture & traditions
 Education
 Social groups
 Workplace
A supportive and positive environment builds confidence, while a negative environment may
create fear or insecurity.

3. Situation
A person may behave differently in different situations.
Behaviour changes based on roles, responsibilities, pressure, or surroundings.
Example: A calm person may become aggressive during urgent work situations.
Situations temporarily modify personality expression.

4. Family & Social Group Influence

Family is the first and most important influence.
It teaches values, discipline, manners, beliefs, and communication styles.
Friends and social groups shape habits, behaviour patterns, and attitudes.

5. Culture
Culture refers to shared beliefs and customs followed by a group of people.
Culture shapes:
 Communication style
 Work behaviour
 Attitudes towards authority
 Social interaction patterns
People from different cultures often have different personality expressions.

6. Life Experiences
Events such as success, failure, travel, challenges, achievements, or trauma shape personality.
Positive experiences create confidence; negative experiences may create fear or maturity
depending on the individual.

Types of Personality & Big Five Personality Traits

A. Behaviour-Based Personality Types

 The Achiever Personality (Type A)

People who are highly competitive, impatient, and goal-driven.
They work fast and push themselves to achieve more.
However, they get stressed easily.

 The Relaxed Personality (Type B)

People who are calm, patient, and easy-going.
They handle stress well and maintain life balance.
They work steadily without rushing.
B. Social Interaction Personality Types

 The Introverted Personality

Quiet, reserved, prefers working alone.
Thinks deeply before speaking.
Excellent in analysis and observation.

 The Extroverted Personality

Outgoing, talkative, energetic, sociable.
Loves teamwork and public interaction.
Perfect for sales, HR, leadership roles.

C. Big Five Personality Traits

(Traits, not types)

✔ Openness (Open-Minded Personality)

Creative, innovative, curious.

✔ Conscientiousness (Organized Personality)

Responsible, disciplined, reliable.

✔ Extraversion (Social Personality)

Energetic, talkative, outgoing.

✔ Agreeableness (Supportive Personality)

Kind, cooperative, helpful.

✔ Neuroticism (Sensitive Personality)

Emotional, anxious, easily stressed.
Perception
Perception is the process of selecting, organizing, and interpreting information to
understand the world around us.
People behave based on their perception, not actual reality.

Perception Process

1. Selection
The individual chooses which information to focus on.
Influenced by interest, experience, and expectations.

2. Organization
The selected information is arranged or grouped to make sense of it.
The mind creates patterns.

3. Interpretation
The individual assigns meaning to the information.
Influenced by attitude, beliefs, and past experience.

Factors Influencing Perception

A. Perceiver
Attitude, experience, interest, mood, and expectations influence perception.

B. Target
Appearance, behaviour, gestures, and expressions affect how a person is perceived.

C. Situation
Time, place, and environment also influence perception.

Importance of Perception in OB
 Helps understand employee behaviour
 Improves communication
 Helps in better decision-making
 Reduces misunderstandings
 Important for leadership and teamwork

Perceptual Errors / Distortions

Meaning
Perceptual errors occur when people judge others incorrectly because of bias, assumptions, or
incomplete information.

Types of Perceptual Errors

1. Halo Effect
Judging a person positively based on one good trait.
Example: A polite employee is seen as perfect in all tasks.

2. Horn Effect
Judging a person negatively based on one bad trait.
Example: Arriving late once → labelled irresponsible.

3. Stereotyping
Generalizing a person based on the group they belong to.
Example: “All teenagers are careless.”

4. Selective Perception
Noticing only what agrees with your expectations.
Example: A manager sees only mistakes of an employee he dislikes.

5. Projection
Assuming others think, feel, or behave like us.
Example: A hardworking person expects everyone to work like him.

6. Attribution Error
Wrong judgement about the cause of someone’s behaviour.
Internal attribution → Blaming the person
External attribution → Blaming the situation

LEARNING
Meaning of Learning
Learning is a relatively permanent change in behaviour, knowledge, or skills that occurs
due to experience, practice, or training.
It means that when a person learns something, the change stays for a long time and can be
used repeatedly in future situations.

Nature / Characteristics of Learning

1. Learning involves change

Learning always brings some change in behaviour, skills, or thinking.
This change may be positive or negative.
Example:
An employee improves communication skills after training.

2. Learning is continuous
Learning is a lifelong process. People keep learning new things throughout their lives.
Example:
Even senior managers attend leadership and skill development programs.

3. Learning is experience-based
Learning occurs mainly through experience and practice, not only through books.
Example:
An employee learns to handle customers better after facing real customer situations.

4. Learning is goal-oriented
People learn with a purpose or objective in mind.
Example:
Employees learn new skills to get promotion, rewards, or career growth.

5. Learning affects behaviour

Learning always reflects in a person’s behaviour.
Example:
After learning time management, an employee becomes more punctual and organized.

Learning Process

Learning does not happen suddenly. It takes place through a process consisting of four stages:

1. Motivation
Motivation refers to the desire or willingness to learn.
Without motivation, learning will not be effective.
Examples:
Promotion, rewards, recognition, career growth.

2. Stimulus
Stimulus is anything that encourages or triggers learning.
Examples:
Training programs, instructions, new tasks, workplace problems.

3. Response
Response is the action or reaction shown by the learner after the stimulus.
Example:
An employee tries a new method of doing work after training.
4. Reinforcement
Reinforcement strengthens learning by rewarding correct behaviour, making learning
permanent.
Examples:
Praise, incentives, appreciation, positive feedback.

Importance of Learning
 Improves employee performance
 Enhances skills and knowledge
 Reduces mistakes and errors
 Helps employees adapt to organizational changes
 Supports organizational growth and success

THEORIES OF LEARNING

Introduction to Learning Theories

Learning theories explain how individuals learn, why learning occurs, and how behavior
changes as a result of learning.
In Organizational Behaviour, learning theories help managers understand how employees
acquire new skills, improve performance, and change their behaviour at work.
Different people learn in different ways; therefore, multiple learning theories are used in
organizations.
1. Cognitive Learning Theory
Meaning
Cognitive learning theory states that learning occurs through thinking, understanding,
reasoning, and mental processes.
It emphasizes the role of the mind in learning rather than only observable behavior.
Explanation
According to this theory:
 Learning is an internal mental process
 Individuals actively process information
 Understanding is more important than memorization
Employees learn better when they understand:
 Why a task is performed
 How it contributes to organizational goals
 What consequences their actions have
Workplace Example
An employee who understands why a quality check is required will perform the task more
carefully than someone who follows instructions without understanding.
Key Point
Cognitive learning focuses on understanding and thinking, not just doing.

2. Social Learning Theory

Meaning
Social learning theory states that people learn by observing others, especially seniors,
managers, and role models.
Learning occurs through:
 Observation
 Imitation
 Modelling
Explanation
In organizations, employees learn not only from formal training but also by watching how
others behave.
behaviour that is appreciated and rewarded is more likely to be copied.
Managers play an important role as role models because employees observe their actions
closely.
Workplace Example
A new employee learns how to communicate with clients by observing how senior employees
handle customers.
Key Point
People learn more from what others do than from what they say.

3. Operant Conditioning
Meaning
Operant conditioning explains learning through rewards and punishment.
It states that behaviour is shaped by its consequences.
Explanation
According to this theory:
 Behaviour followed by reward is repeated
 Behaviour followed by punishment is avoided
Organizations use rewards and punishments to encourage desirable behaviour and discourage
undesirable behaviour.
Workplace Example
An employee who receives incentives for meeting targets will continue working hard, while
an employee who receives warnings for late coming will try to be punctual.
Key Point
Operant conditioning focuses on learning through consequences.

4. Classical Conditioning
Meaning
Classical conditioning explains learning by association between two events or stimuli.
Individuals learn to associate one situation with another based on repeated experiences.
Explanation
This type of learning often involves emotional responses such as fear, stress, or comfort.
Learning occurs automatically and may not be conscious.
Workplace Example
If meetings are always stressful and involve criticism, employees may feel anxious whenever
a meeting is announced, even before it begins.
Key Point
Classical conditioning explains emotional learning through association.

5. Behaviourism
Meaning
Behaviourism states that learning is a change in observable behaviour.
It focuses only on actions that can be seen and measured.
Explanation
According to behaviourism:
 Learning is identified through behaviour change
 Thoughts and feelings are not considered
 Performance improvement indicates learning
Organizations that emphasize rules, discipline, and performance-based systems follow
behaviourist principles.
Workplace Example
Employees strictly follow safety rules to avoid penalties and gain rewards.
Key Point
Behaviourism focuses on visible behaviour, not mental processes.

Organizational Reward System

An organizational reward system refers to the policies, practices, and methods used by an
organization to recognize and reward employees for their performance, contribution, and
behaviour.
The main purpose of a reward system is to motivate employees, encourage desired work
behaviour, and improve overall organizational performance.
Rewards make employees feel valued and appreciated, which increases their commitment
towards the organization.

Importance of Reward System

A reward system is important for the following reasons:
  It motivates employees to perform better
 It encourages positive behaviour at the workplace
 It improves job satisfaction and morale
 It helps in retaining talented employees
 It reduces employee turnover
 It creates a positive work environment
A well-designed reward system helps align employee goals with organizational goals.

Types of Rewards
Rewards in organizations are broadly classified into two main types:

1. Financial Rewards
2. Non-Financial Rewards
This classification is the most important for MBA examinations.

Financial Rewards
Financial rewards are monetary benefits given to employees in return for their work and
performance.
Importance of Financial Rewards:
 Satisfy basic financial needs
 Motivate employees to achieve targets
 Encourage higher productivity
 Help attract and retain employees

Non-Financial Rewards
Non-financial rewards are non-monetary benefits that satisfy employees’ psychological and
emotional needs.
Importance of Non-Financial Rewards:
 Improve job satisfaction
 Build employee morale
 Encourage long-term commitment
 Increase loyalty towards the organization

Reward System and Employee Motivation

A reward system plays a key role in motivating employees.

 Rewards encourage employees to perform better
 Motivated employees show higher commitment
 Motivation leads to improved performance

Problems of Poor Reward System

An ineffective or unfair reward system can lead to:
 Low employee morale
 Lack of motivation
 Job dissatisfaction
 Workplace conflicts
 High employee turnover
Therefore, rewards must be fair, transparent, and performance-based.
ATTITUDE

Meaning of Attitude
Attitude refers to a person’s feelings, beliefs, and tendencies to behave in a particular
way towards people, objects, ideas, or situations.
In simple words, attitude shows how a person thinks, feels, and reacts to something.

In an organizational context, attitude influences:

 How employees behave at work
 How they respond to rules, colleagues, and management
 Their level of motivation and commitment

Nature / Characteristics of Attitude

1. Attitude is learned
Attitudes are not born; they are developed through experience, education, family, and
social environment.

2. Attitude influences behaviour

A positive attitude leads to positive behaviour, while a negative attitude may result in
poor performance.

3. Attitude can be positive or negative

Employees may have favourable or unfavourable attitudes toward work, supervisors,
or the organization.

4. Attitude is subjective
Different people may have different attitudes toward the same situation.

5. Attitude can change

Attitudes are not permanent and can change over time through learning, experience,
and motivation.
Components of Attitude
Attitude consists of three important components:

a) Cognitive Component
This refers to beliefs, opinions, and knowledge a person has about something.
Example:
An employee believes that hard work leads to promotion.

b) Affective Component
This refers to feelings or emotions toward something.
Example:
An employee feels happy or proud about their job.

c) Behavioural Component
This refers to the intention to behave or act in a certain way.
Example:
An employee works sincerely and cooperates with others.

Types of Attitudes

a) Positive Attitude
A positive attitude makes employees optimistic, cooperative, and willing to learn.
Example:
Accepting feedback positively and improving performance.

b) Negative Attitude
A negative attitude results in dissatisfaction, resistance, and poor performance.
Example:
Complaining about work and avoiding responsibility.

Work-Related Attitudes
a) Job Satisfaction
It refers to how satisfied an employee feels about their job.

b) Job Involvement
It shows the degree to which an employee is emotionally involved in their work.

c) Organizational Commitment
It refers to an employee’s loyalty and attachment to the organization.

Importance of Attitude in Organizations

Attitude is important because it:
 Influences job performance
 Affects teamwork and cooperation
 Determines employee motivation
 Impacts organizational culture
 Reduces or increases conflicts
Employees with positive attitudes contribute more effectively to organizational goals.

Changing Attitudes
Attitudes can be changed through:
 Training and development
 Motivation and rewards
 Positive leadership
 Communication and counselling
 Experience and learning
Management plays a key role in shaping employee attitudes.

Attitude and Organizational Behaviour

Attitude is a core concept in Organizational Behaviour because it:

  Explains employee behaviour
 Helps managers predict reactions
 Assists in designing motivational strategies
 Improves employee–management relationships

VALUES AND HUMAN DIGNITY

Meaning of Values
Values are basic beliefs and principles that guide a person’s behaviour, decisions, and
actions.
They help individuals decide what is right or wrong, acceptable or unacceptable, and
important or unimportant in both personal and professional life.

In organizations, values influence:

 How employees behave
 How decisions are made
 How people treat each other
Examples of values:
Honesty, integrity, discipline, responsibility, respect, fairness.

Values in Organizational Behaviour

In Organizational Behaviour, values play a key role because they shape employee attitudes
and behaviour.
Employees bring their personal values to the workplace, and organizations promote certain
values through policies, culture, and leadership.
When individual values and organizational values are aligned:
 Employees feel comfortable
 Conflicts reduce
 Performance improves
When values clash:
 Dissatisfaction increases
  Ethical issues arise

Importance of Values in Organizations

Values are important for organizations for the following reasons:

a) Guide Behavior
Values act as a guideline for employees on how to behave in different situations.

b) Support Ethical Decision-Making

Values help employees and managers take ethical and fair decisions, especially during
difficult situations.

c) Build Trust and Integrity

Organizations that follow strong values gain trust from employees, customers, and society.

d) Create Positive Work Culture

Shared values promote teamwork, cooperation, and mutual respect.

e) Improve Long-Term Success

Organizations with strong values achieve sustainable growth and good reputation.

Meaning of Human Dignity

Human dignity refers to respecting the worth, value, and self-respect of every individual
in the organization.
It means treating employees as human beings, not merely as tools or resources.

Human dignity ensures that every employee:

 Is treated with respect
 Is not humiliated or discriminated against
 Feels safe and valued at the workplace
Human dignity applies to all employees, irrespective of their position, gender, caste, religion,
age, or background.
Human Dignity at the Workplace
In an organizational context, human dignity means:
 Respectful communication
 Equal treatment of employees
 Fair opportunities for growth
 Safe and healthy working conditions
 No harassment, bullying, or discrimination
When human dignity is maintained, employees feel confident, motivated, and committed to
their work.

Importance of Human Dignity

Human dignity is very important in organizations because:
a) Improves Employee Morale
Respectful treatment increases self-confidence and job satisfaction.
b) Reduces Conflicts
When dignity is respected, misunderstandings, complaints, and conflicts reduce.
c) Builds Trust and Loyalty
Employees trust organizations that respect them, leading to loyalty and retention.
d) Encourages Equality and Fairness
Human dignity promotes equal treatment and discourages bias and favoritism.
e) Improves Organizational Performance
Employees who feel respected perform better and contribute positively.

Relationship Between Values and Human Dignity

Values and human dignity are closely related:
 Values guide ethical behaviour
 Human dignity ensures ethical treatment of people
 Together, they promote organizational ethics and integrity
Organizations that follow strong values naturally respect human dignity.
Role of Management
Management plays a major role in promoting values and human dignity by:
 Acting as role models
 Treating employees fairly
 Encouraging ethical behaviour
 Ensuring respectful communication
 Creating inclusive and supportive work culture
Managers who respect dignity gain employee trust and cooperation.

Consequences of Ignoring Values and Human Dignity

If values and human dignity are ignored:
 Employee dissatisfaction increases
 Morale and motivation decrease
 Workplace conflicts rise
 Employee turnover increases
 Organizational reputation is damaged
Such organizations struggle to retain talent and achieve long-term success.

This Module explains how personality, perception, learning, attitude, rewards, values, and
human dignity influence employee behaviour in organizations. Understanding these concepts
helps managers predict behaviour, motivate employees, make better decisions, and create a
positive and ethical work environment.