Lecture notes on Organizational Behavior

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O ORGA ANIZA ATIO ONAL L BEH HAVIOR IO CORE COURSEE  BB BA III Se emester r (2 2011 A Admissio on) UN NIVER RSITY Y OF C CALIC CUT SC CHOOL OF DIST TANCE EDUCATI ION C Calicut Un niversity P P.O. Malap ppuram, Kerala, In ndia 673 635   3 309 School of Distance Education    UNIVERSITY OF CALICUT  SCHOOL OF DISTANCE EDUCATION Study Material ORGANIZATIONAL BEHAVIOR CORE COURSE  III SEMESTER BBA 2011 Admission Prepared by: Sri. PRAVEEN M V, Assistant Professor, Department Of Commerce Government College Madappally Scrutinized by: Dr . K. VENUGOPALAN Associate Professor Department of Commerce Government College Madappally Layout: Computer Section, SDE © RESERVED ORGANISATION BEHAVIOUR    2   School of Distance Education    MODULE PAGE CONTENTS 1 INTRODUCTION TO ORGANIZATIONAL 5 BEHAVIOR 2 INDIVIDUAL BEHAVIOUR 13 3 GROUP BEHAVIOUR 46 4 LEADERSHIP 55 5 STRESS MANAGEMENT 65 Model Question Paper ORGANISATION BEHAVIOUR    3   School of Distance Education    ORGANISATION BEHAVIOUR    4   School of Distance Education    Module 1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR Behaviour is a way of action. It is basically goal oriented. Human behaviour is generally motivated by a desire to attain a goal. The specific goal is not always consciously known by the individual. Many times we wonder “why did I do that”? The reason for our action is not always apparent to the conscious mind. The knowledge and information explosion, global competition, total quality and diversity are some of the bitter realities that the managers are facing today. Yet the simple but most profound key to successful organizations and management is human resources and its behaviour. The basic unit of behaviour is an activity. In fact, all behaviour is a series of There are many solutions being offered to deal with these complex challenges. Activities. As a human being, we always do something; walking, talking, sleeping etc. and sometimes we do more than one activity at a time. Sometimes we decide to change from one activity to another. Why do we do so? Or why do people engage in one activity and not another? A manager must understand, predict and control the activities of a person at a given moment. To predict behaviour, manager must know which motives or needs of people evoke a certain action at a particular time. ORGANISATION When there are activities of two or more persons, the organisation starts evolving. Organization may be simple or complex, micro or macro aspects. The basic elements of organisation have remained the same over the years. They have a purpose. They attract people. They acquire resources which they use. They aspire to achieve the set of objectives. They use some structure to decide the works and to co-ordinate the activities. According to L.Urwick,”Organisation is to determine the activities to accomplish a job and arrange the distribution of activities among the people” According to Gary Johns, "Organizations are social inventions for accomplishing goals through group efforts". This definition covers wide variety-of groups such as businesses, schools, hospitals, fraternal groups, religious bodies, government agencies and so on. There are three significant aspects in the above definition, which require further analysis. They are as follows: • Social Inventions: The word "social" as a derivative of society basically means gathering of people. It is the people that primarily make up an organisation. • Accomplishing Goals: All organisations have reasons for their existence. These reasons are the goals towards which all organisational efforts are directed. While the primary goal .of any commercial organisation is to make money for its owners, this goal is inter-related with many other goals. Accordingly, any organisational goal must integrate in itself the personal goals of all individuals associated with the organisation. • Group Effort: People, both as members of the society at large and as a part of an organization interact with each other and are inter-dependent. Individuals in themselves have physical and intellectual limitations and these limitations can only be overcome by group efforts. ORGANISATION BEHAVIOUR    5   School of Distance Education    Meaning and Concept of Organisational Behavior Organisational behaviour is the study and application of knowledge about how people act within the organizations. It is a human tool for human benefit. It applies broadly to the behaviour of people in all types of organizations, such as business, government, school and service organizations. Wherever organizations are, there is a need to understand organisational behaviour. The organizational behaviour has a goal lo help the managers make a transition to the new paradigm. Some of the new paradigm characteristics include coverage of second-generation information technology and total quality management such as empowerment, reengineering and benchmarking, and learning organization for managing diversity of work. The new paradigm sets the stage for the study, understanding, and application of the time-tested micro-variables, dynamics and macro-variables. One must know why management needs a new perspective to meet the environmental challenges and to shift to a new paradigm. Management is generally considered to have three major dimensions—technical, conceptual and human. The technical dimension consists of the manager's expertise in particular functional areas. They know the requirements of the jobs and have the functional knowledge to get the job done. But the practicing managers ignore the conceptual and human dimensions of their jobs. Most managers think that their employees are lazy, and are interested only in money, and that if you could make them happy in terms of money, they would be productive. If such assumptions are accepted, the human problems that the management is facing are relatively easy to solve. But human behaviour at work is much more complicated and diverse. The new perspective assumes that employees are extremely complex and that there is a need for theoretical understanding given by empirical research before applications can be made for managing people effectively. Organisational behaviour is concerned with people's thoughts, feelings, emotions and actions in setting up a work. Understanding an individual behaviour is in itself a challenge, but understanding group behaviour in an organisational environment is a monumental managerial task. The organisation's work gets done through people, individually or collectively, on their, own or in collaboration with technology. Therefore, the management of organisational behaviour is central to the management task—a task that involves the capacity to "understand" the behaviour patterns of individuals, groups and organisations, to ''predict'" what behavioural responses will be elicited by various managerial actions and finally to use this understanding and these predictions to achieve "control". Organisational behaviour can then be defined as: "The study of human behaviour in organisational settings, the interface between human behaviour and the organisational context, and the organisation itself." The above definition has three parts—the individual behaviour, the organisation and the (interface between the two. Each individual brings to an organisation a unique set of beliefs, values, attitudes and other personal characteristics and these characteristics of all individuals must interact with each other in order to create organisational settings. The organisational behaviour is specifically concerned with work-related behaviour, which takes place in organisations. In addition to understanding; the on-going behavioral processes involved, in 'their own jobs, managers must understand the basic human element of their work. Organisational behaviour offers three major ways of understanding this context; people as organisations, people as resources and people as people. ORGANISATION BEHAVIOUR    6   School of Distance Education    Above all, organisations are people; and without people there would be no organisations. Thus, if managers are to understand the organisations in which they work, they must first understand the people who make up the organisations. As resources, people are one of the organization’s most valuable assets. People create the organisation, guide and direct its course, and vitalize and revitalize it. People make the decisions, solve the problems, and answer the questions. As managers increasingly recognize the value of potential contributions by their employees, it will become more and more important for managers and employees to grasp the complexities of organisational behaviour. Finally, there are people as people - an argument derived from the simple notion of humanistic management. People spend a large part of their lives in organisational settings, mostly ; as employees. They have a right to expect something in return beyond wages and benefits. They have a right to expect satisfaction and to learn new skills. An understanding of organisational behaviour can help the manager better appreciate the variety of individual needs and' expectations. Organisational behaviour is concerned with the characteristics and behaviours of employees in isolation; the characteristics and processes that are part of the organisation itself; 'and the characteristics and behaviours directly resulting from people with their individual needs and motivations working within the structure of the organisation. One cannot understand an individual’s behaviour completely without learning something about that individual's organisation. Similarly, he cannot understand how the organisation operates without; studying the people who-make it up. Thus, the organisation influences and is influenced by individuals. Organizational behaviour integrates the relevant contents of these disciplines to make them applicable for organizational analysis. e.g. it addresses issues, which may be relevant to the case, such as the following: ¾ What facilitates accurate perception and attribution? ¾ What influences individual, group and organizational learning and the development of individual attitudes toward .work? ¾ How do individual differences in personality, personal development, and career development affect individual's behaviours and attitudes? ¾ What motivates people to work, and how. Does the organizational reward system influence worker's behaviour and attitudes? ¾ How do managers build effective teams? ¾ What contributes to effective decision-making? ¾ What are the constituents of effective communication? ¾ What are the characteristics of effective communication? ¾ How can power be secured and used productively? ¾ What factors contribute to effective negotiations? ¾ How can conflict (between groups or between a manager and subordinates) be resolved or managed? ¾ How can jobs and organizations be effectively designed? ¾ How can managers help workers deal effectively with change? Historical background for organizational behaviour Scientific Management Approach Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century. This theory supported the use of certain steps in scientifically studying each element of a ORGANISATION BEHAVIOUR    7   School of Distance Education    job, selecting and training the best workers for the job arid making sure that the workers follow the prescribed method of doing the job. It provided a scientific rationale for job specialization and mass production. His assumption was that employees are motivated largely by money. To increase the output, Taylor advised managers to pay monetary incentives to efficient workers. Yet, his theory was criticized by many employers and workers. Workers objected to the pressure of work as being harder and faster. Critics worried that the methods took the humanity out of labor, reducing workers to machines responding to management incentives. Therefore, Taylor's view is now considered inadequate and narrow due to the points given by the critics. Bureaucratic Approach While scientific management was focusing on the interaction between workers and the task, me researchers were studying how to structure the organization more effectively. Instead of trying to make each worker more efficient, classical organization theory sought the most effective overall organizational structure for workers and managers. The theory's most prominent advocate, Max Weber, proposed a 'bureaucratic form' of structure, which he thought would work for all organizations. Weber's idea Bureaucracy was, logical, rational and efficient. He made the naive assumption that one structure would work best for all organizations. Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized the behavioral side of management. However, they did not emphasize the human dimensions. Although there were varied and complex reasons for the emerging importance of behavioral approach to management, it is generally recognized that the Hawthorne studies mark the historical roots for the field of organizational behaviour. Hawthorne Studies Even, as Taylor and Weber brought attention with their rational, logical approaches to more efficient productivity, their views were criticized on the ground that both approaches ignored worker's humanity. The real beginning of applied research in the area of organizational behaviour started with Hawthorne Experiments. In 1924, a group of professors began an enquiry into the human aspects of work and working conditions at the Hawthorne plant of Western Electric Company, Chicago. The findings of these studies were given a new name 'human relations' the studies brought out a number of findings relevant to understanding human behaviour at work. The Human element in the workplace was considerably more important. The workers are influenced by social factors and the behaviour of the individual worker is determined by the group. Hawthorne studies have been criticized for their research methods and conclusions drawn. But their impact on the emerging field of organizational behaviour was dramatic. They helped usher in a more humanity centered approach to work. Nature of OB Organization Behaviour has emerged as a separate field of study. The nature it has acquired by now is identified as follows: 1. A separate field of study and not a discipline only: OB has a multidisciplinary orientation and is thus, not based on a specific theoretical background. 2. An inter disciplinary approach: OB is essentially an interdisciplinary approach to study human behaviour at work. It tries to integrate the relevant knowledge drawn from related ORGANISATION BEHAVIOUR    8   School of Distance Education    disciplines like psychology, sociology, anthropology etc. ,to make them applicable for studying and analyzing OB 3. An Applied Science: OB basically does the application of various researches to solve the organizational problems related to human behaviour. 4. A Normative Science: while the positive science discusses only cause and effect relationship, OB prescribes how the findings of applied researches can be applied to socially accept organizational goals. 5. A Humanistic and Optimistic Approach: it applies humanistic approach towards people working in the organization. It treats people as thinking, feeling human being. 6. Total system approach; The system approach is one that integrates all the variables affecting organizational functioning. Man’s socio –psychological framework is complex one and the system approach of OB tries to study this complexity and to find solution to it. OB –as an interdisciplinary approach Organizational behaviour is an applied behavioral science that is built on contributions from a number of behavioral disciplines such as psychology, sociology, social psychology, anthropology and economics. Let’s see how these disciplines are related to organizational behaviour, A. Psychology. Psychology is the study of human behavior which tries to identify the characteristics of individuals and provides an understanding why an individual behaves in a particular way. This thus provides us with useful insight into areas such as human motivation, perceptual processes or personality characteristics. B. Sociology. Sociology is the study of social behavior, relationships among social groups and societies, and the maintenance of social order. The main focus of attention is on the social system. This helps us to appreciate the functioning of individuals within the organization which is essentially a socio-technical entity. C. Social psychology. Social psychology is the study of human behaviour in the context of social situations. This essentially addresses the problem of understanding the typical behavioral patterns to be expected from an individual when he takes part in a group. D. Anthropology. Anthropology is the science of mankind and the study of human behaviour as a whole. The main focus of attention is on the cultural system, beliefs, customs, ideas and values within a group or society and the comparison of behaviour among different cultures. In the context of today's organizational scenario. It is very important to appreciate the differences that exist among people coming from different cultural backgrounds as people are often found to work with others from the other side of the globe. E. Economics. Any organization to survive and sustain must be aware of the economic viability of their effort. This applies even to the non-profit and voluntary organizations as well. F. Political Science. Although frequently overlooked, the contributions of political scientists are significant to the understand arrangement in organizations. It studies individuals and groups within specific conditions concerning the power dynamics. Important topics under here include structuring of conflict, allocation of power and how people manipulate power for individual self-interest etc. Importance and scope of organizational behaviour ORGANISATION BEHAVIOUR    9   School of Distance Education    Organisational behaviour offers several ideas to management as to how human factor should be properly emphasized to achieve organisational objectives. Barnard has observed that an organisation is a conscious interaction of two or more people. Organisational behaviour provides opportunity to management to analyse human behaviour and prescribe means for shaping it to a particular direction. Organisational behaviour helps to analyse 'why' and 'how' an individual behaves in a particular way. Understanding Human Behaviour Organisational behaviour provides understanding the human behaviour in all directions in which the human beings interact. Thus, organisational behaviour can be understood at the individual level, interpersonal level, group level and inter-group level. • Interpersonal Level: Human behaviour can be understood at the level of interpersonal interaction. Organisational behaviour provides • means for understanding the interpersonal relationships in an organisation. Analysis of reciprocal relationships, role analysis and transactional analysis are some of the common methods, which provide such understanding. • Group Level: Though people interpret anything at their individual level, they are often modified by group pressures, which then become a force in shaping human behaviour, Thus, individuals should be studied in groups also.. Research in group dynamics has contributed vitally to organisational behaviour and shows how a group behaves in its norms, cohesion, goals, procedures, communication pattern and leadership. These research results are advancing managerial knowledge of understanding group behaviour, which is very important for organisational morale and productivity. • Inter-group Level: The organisation is made up of many groups that develop complex relationships to build their process and substance. Understanding the effect of group relationships is important for managers in today's organisation. Inter-group relationship may be in the form of co-operation or competition. Scope and importance of OB can be visible in following points: • Controlling and Directing Behaviour: After understanding the mechanism of human behaviour, managers are required to control and direct the behaviour so that it conforms to the standards required for achieving the organisational objectives. Thus, managers are required to control and direct the behaviour at all levels of individual interaction. Therefore, organisational behaviour helps managers in controlling and directing in different areas such as use of power and sanction, leadership, communication and building organisational climate favourable for better interaction. • Use of Power and Sanction: The behaviours can be controlled and directed by the use of power and sanction, which are formally defined by the organisation. Power is referred to as the capacity of an individual to take certain action and may be utilized in many ways. Organisational behaviour explains how various means of power and sanction can ,be utilized so that both organisational and individual objectives are achieved simultaneously. • Leadership: Organisational behaviour brings new insights and understanding to the practice and theory of leadership. It identifies various leadership styles available to a manager and analyses which style is more appropriate in a given situation. Thus, managers can adopt styles keeping in view the various dimensions of organisations, individuals and situations. ORGANISATION BEHAVIOUR    10   School of Distance Education    • Communication: Communication helps people to come in contact with each other. To achieve organisational objectives, the communication must be effective. The communication process and its work in inter-personal dynamics have been evaluated by organisational behaviour. • Organisational Climate: Organisational climate refers to the total organisational situations affecting human behaviour. Organisational climate takes a system perspective that affect human behaviour. Besides improving the satisfactory working conditions and adequate compensation, organisational climate includes creation of an atmosphere of effective supervision; the opportunity for the realisation of personal goals, congenial relations with others at the work place and a sense of accomplishment. • Organisational Adaptation: Organisations, as dynamic entities are characterised by pervasive changes. Organisations have to adapt themselves to the environmental changes by making suitable, internal arrangements such as convincing employees who normally have the tendency of resisting any changes. MODELS OF ORGANISATION BEHAVIOUR Organizations differ in the quality of organizational behaviour that they develop. These differences are substantially caused by different models of organizational behaviour that dominant management's thought in each organization. The model that a manager holds usually begins with certain assumptions about people and thereby leads to certain interpretations of organizational events. The following four models of organizational behaviour are as follows: A. Autocratic model B. Custodial model C. Supportive model D. Collegial model Autocratic Model In an autocratic model', the manager has the power to command his subordinates to do a specific job. Management believes that it knows what is best for an organization and therefore, employees are required to follow their orders. The psychological result of this model on employees is their increasing dependence on their boss. Its main weakness is its high human cost. Custodial Model This model focuses better employee satisfaction and security. Under this model organizations satisfy the security and welfare needs of employees. Hence, it is known as custodian model. This model leads to employee dependence on an organization rather than on boss. As a result of economic rewards and benefits, employees are happy and contented but they are not strongly motivated. Supportive Model The supportive model depends on 'leadership' instead of power or money. Through leadership, management provides a climate to help employees grow and accomplish in the interest of an organization. This model assumes that employees will take responsibility, develop a drive to contribute and improve them if management will give them a chance. Therefore, management's direction is to 'Support' the employee's job performance rather than to 'support' employee benefit payments, as in the custodial approach. Since management supports employees in their work, the psychological result is a feeling of participation and task involvement in an, organization. ORGANISATION BEHAVIOUR    11   School of Distance Education    Collegial Model The term 'collegial' relates to a body of persons having a common purpose. It is a team concept. Management is the coach that builds a better team. The management is seen as joint contributor rather than as a boss. The employee response to this situation is responsibility. The psychological result of the collegial approach for the employee is 'self-discipline'. In this kind of environment employees normally feel some degree of fulfillment and worthwhile contribution towards their work. This results in enthusiasm in employees' performance. Four models of organizational behaviour Autocratic Custodial Supportive Collegial Basis of Model Power Economic Leadership Partnership resources Managerial- Authority Money Support Teamwork orientation Employee Dependence Dependence Participation Self-discipline psychological on boss on result organization Employee Subsistence Security Status and Self-actualization needs met recognition Minimum Passive Awakened Moderate enthusiasm Performance cooperation drives result It is wrong to assume that a particular model is the best model. The selection of model by a manager is determined by a number of factors such as, the existing philosophy, vision and goals of manager. In addition, environmental conditions help in determining which model will be the most effective model. Limitations of organizational behaviour 1. Organizational behaviour cannot abolish conflict and frustration but can only reduce them. It is a way to improve but not an absolute answer to problems. 2. It is only one of the many systems operating within a large social system. 3. People who lack system understanding may develop a 'behavioral basis', which gives them a narrow view point, i.e., a tunnel vision that emphasizes on satisfying employee experiences while overlooking the broader system of an organization in relation to all its public. 4. The law of diminishing returns also operates in the case of organizational behaviour. It states, that at some point increase of a desirable practice produce declining returns and sometimes, negative returns. The concept implies that for any situation there is an optimum amount of a desirable practice. When that point is exceeded, there is a decline in returns. For example, too much security may lead to less employee initiative and growth. This relationship shows that organizational effectiveness is achieved not by maximizing one human variable but by working all system variables together in a balanced way. ORGANISATION BEHAVIOUR    12   School of Distance Education    5. A significant concern about organizational behaviour is that its knowledge and techniques could be used to manipulate people without regard for human welfare. People who lack ethical values could use people in unethical ways. Module 2 INDIVIDUAL BEHAVIOUR All organizations are composed of individuals. No organization can exist without individuals. Human behavior, which is; considered a complex phenomenon, is very difficult to define in absolute terms. It is primarily a combination of responses to external and internal stimuli. These responses would reflect psychological structure of the person and may be results' of the combination of biological and psychological processes, which interpret them, respond to them in an appropriate manner and learn from the result of these responses. Psychologist Kurt Levin has conducted considerable research into the human behavior and its causes. He believes that people are influenced by a number of diversified factors, which can be both genetic and environmental. The influence of these factors determines the pattern of human behavior. An individual makes a variety of contributions to an organization in the form of—efforts, skills, ability, time, loyalty and so forth. These contributions presumably satisfy various needs and requirements of the organization. In return for contributions, the organization provides incentives such as pay, promotion, and job security to the employee. Just as the contributions available from the individual must satisfy the organization's needs, the incentives must serve the employees' needs in return. If both the individual and the organization consider the psychological contract fair and equitable, they will be satisfied with the relationship and are likely to continue it. If either party perceives an imbalance or iniquity in the contract, it may initiate a change. A major challenge faced by an organization, thus, is to manage the psychological contracts. One specific aspect of managing psychological contracts is managing the person-job fit. The 'person-job fit' is the extent to which the contributions made by the individual match the incentives offered by the organization. The behavior of individuals in organization is the primary concern of management and it is essential that the managers should have an understanding of the factors influencing the behavior of the employees they manage. The figure 5.1 identifies five sets of factors that have an impact upon individual behavior in organizations. NATURE OF INDIVIDUAL DIFFERENCES Individual differences are personal attributes that vary from one person to another. Individual differences may be physical and psychological. The following figure shows the attributes of physical and psychological differences. Physical Differences Psychological Differences ORGANISATION BEHAVIOUR    13   School of Distance Education    • Height • Personality • Weight • Attitudes • Body Shape • Perception • Appearance • Motivation • Complexion • Learning Whenever an organization attempts to assess the individual differences among its employees, it must consider the situation in which that particular behavior occurs. Individual differences make the manager's job extremely challenging. In fact, according to a recent research, "variability among workers is substantial at all levels but increases dramatically with job complexity. Due to these reasons, growing work force diversity compels managers to view individual differences in a fresh way. Leaders now talk frequently about "valuing differences" and learn to "manage diversity". So rather than limiting diversity, as in the past, today's managers need to better understand and accommodate employee diversity and individual differences. Important dimensions of individual differences • Self-concept • Personality dimensions • Abilities, and • Personal values and ethics. Self-concept Self is the core of one's conscious existence. Awareness of self is referred to as one's self-concept. Sociologists Viktor Gecas defines self-concept as "the concept the individual has of himself as a physical, social and spiritual or moral being". In other words, every individual recognizes himself as a distinct individual. A self-concept would be impossible without the capacity to think. This brings us to the role of cognitions. Cognitions represent, "any knowledge, opinion, or belief about the environment about oneself, or about one's behavior". Among many different types of cognitions, those involving expectation, planning, goal setting, evaluating and setting personal standards are particularly relevant to organizational, behavior. Self-esteem Self-esteem is a belief over one's own worth based on an overall self-evaluation. Those with low self-esteem tend to view themselves in negative terms. They do not feel good about themselves, tend to have trouble in dealing effectively with others, and are hampered by self-doubts. High self- esteem individuals, in contrast, see themselves as worthwhile, capable and acceptable. Although, high self-esteem is generally considered a positive trait because it is associated with better performance and greater satisfaction, recent research uncovered flaws among those having high self-esteem. Specifically, high self-esteem subjects tended to become self-centered and boastful when faced with situations under pressure Hence moderate self-esteem is desirable. Managers can build employee self-esteem in four ways: 1. Be supportive by showing concern for personal problems, interests, status and contribution. ORGANISATION BEHAVIOUR    14   School of Distance Education    2. Offer work involving variety, autonomy and challenges that suit the individual's values, skills and abilities. 3. Strive for management-employee cohesiveness and trust building. 4. Have faith in each employee's self-management ability, reward successes. Self-efficacy Self-efficacy is a person's belief about his' or her chances of successfully accomplishing a specific task. According to one organizational behavior writer, "Self-efficacy arises from the gradual acquisition of complex, cognitive, social, linguistic, and/or physical skills through experience", There is strong linkage between high self-efficacy expectations and success in terms of physical and mental tasks, anxiety reduction, addiction control, pain tolerance and illness recovery. Oppositely, those with low self-efficacy expectations tend to have low success rates. Personality Dimensions The big, five personality dimensions are: extroversion, agreeableness, thoroughness, emotional stability and openness to experience. Ideally, these personality dimensions that correlate positively and strongly with job performance would be helpful in the selection, training and appraisal of employees. The individuals who exhibit; traits associated with a strong sense of responsibility and determination generally perform better than those who do not. Physical and intellectual qualities Physical differences among individuals are the most visible of all differences. They are also relatively easy to assess. Intellectual differences are somewhat more difficult to discern, but they too can be assessed by fairly objective means. The abilities/skills and competencies of employees are both physical and intellectual qualities. • Ability- it refers to an individual's skill to perform effectively in one or more areas of activity, such as physical, mental or interpersonal work. Individuals with numerical ability, for example, can be trained to apply their ability in the field of engineering, accounting and computer science. Abilities develop from an individual's natural aptitudes and subsequent learning opportunities. Aptitudes are relatively stable capacities for performing some activity effectively. Learning opportunities translate aptitude into abilities through practice, experience and formal training. Organizations have to ensure that people possess the necessary abilities to engage in the behaviors required for effective performance. This can be accomplished either by careful selection of people or by a combination of selection and training. • Skills – skills are generally thought of as being more task-specific capabilities than abilities. For example, an individual with numerical ability who goes to school to learn accounting develops a numerical skill specific to that field'. Thus, when a particular ability is applied to a specialized area, (for example accounting), it becomes a skill. • Competencies- are skills associated with specialization. Competencies are skills that have been refined by practice and experience and that enable, the-individual to specialize in some field. For example, an accountant with numerical "ability and accounting skill takes a position in the Taxation Department and as time passes, he develops more competency as a tax expert. ORGANISATION BEHAVIOUR    15   School of Distance Education    Physical abilities such as strength, flexibility, endurance and stamina can be developed with exercise and training. Mental abilities such as reasoning, memory visualization, comprehension and inter-personal abilities can also be developed through practice and education. Even in the absence of such formal programs, many individuals manage their own careers in such a way as to continually upgrade their abilities, skills and competencies in order to remain valuable to their organizations. Psychological Process of behaviour Behaviour represents the course of action of a person. It is the outcome of an action also. It is easy to understand the behaviour of a person, if we know what caused it or what made the person behave in a particular way. It caused by number of variables. Some of the stated as under; SR Model :( Stimulus- Response model) The model assumes that the reasons which cause human behavior are of two types; internal feeling and external environment. Internal feeling of a person may relate to his motivational factors whereas external environment which is also called the stimulus directly influence the activity of a person. Stimulus can be anything from the external environment like heat, sound etc. the behaviour is determined by the stimulus or in other way the external environment forces determine one’s behaviour. From stimulus, the behaviour (response) occurring. S R   Stimuli  Organism Response (Person)  Input  Output  S.O.B.A Model: (Stimulus –organism- Behavior-Accomplishment Model) This model combines the SR model and human being. Here the organism is immobile/ passive, but it is mediating, maintenance and adjective function between S and R Stimulus  organism  Behaviour  Accomplis hment  situation  Feedback  ORGANISATION BEHAVIOUR    16   School of Distance Education    Stimuli(S) - Denotes the external environmental situations. Stimulus is very comprehensive and all encompassing nature. it stimulates people into action, interrupt what they are doing and help them to make their choices. Organism (O) - organism not only stands for physiological being but also heredity, knowledge, skills, attitude etc. it maintains the interaction between stimulus always. Behaviour (B) - it includes body actions, facial expressions, emotions and thinking. Behaviour is anything done by a person. Accomplishment (A) - accomplishments are the consequences of behaviour. Some of the accomplishments stimulate the organism repetitively and some doesn’t. Thus individual behaviour is not a self induced phenomenon, but it is affected by a larger system. Individuals behave differently to different stimuli because of multitude of factors. This includes an individual’s : Factors Influencing Individual Behaviour 1. Personality-personality traits 2. Economic factors-wage rate, technological change, the job, economic outlook, employment opportunity etc. 3. Socio-cultural factors-social environment consist of relation with friends, relatives, co- workers, superiors, subordinates etc. 4. Cultural factors- basic values, perceptions, work ethics, preferences etc. 5. Organizational factors- structure, hierarchy, resources, leadership, support etc, from organization 6. Motivation- internal motivation (individual skill, ability, intelligence etc.) external (incentives, training etc.) 7. Attitudes- perception favorably or unfavorably. 8. Values- personally or socially preferable. 9. Abilities- actual skills and capabilities of a person and physical-mental ability 10. Perception- is the viewpoint which one interpret a situation. 11. Personal factors- age, sex, education, intelligence, marital status, religion etc. PERSONALITY The term personality has been derived from Latin word “personnare” which means to speak through. Personality is traditionally refers to how people influence others through their external appearances. Gorden Allport defines “Personality is the dynamic organisation within an individual of those psychological systems that determine his unique adjustment to his environment”. Personality is a complex, multi-dimensional construct and there is no simple definition of what “ personality is. Maddi defines personality as, A stable set of characteristics and tendencies that determine those commonalities and differences in the psychological behavior and that may not be easily understood as the sole result of the social and biological pressures of the moment". From the above definition we can infer that all individuals have some universally common characteristics. Some personality theorists stress the need of identifying person-situation as interaction. This is equivalent to recognizing the social learning aspects related to personality. Such a social learning analysis is one of the most comprehensive and meaningful ways included in the ORGANISATION BEHAVIOUR    17   School of Distance Education    overall study of organizational behavior. From this perspective, personality means the way people affect others. It also involves people's understanding themselves, as well as their pattern of inner and outer measurable traits, and the person and situation interaction. People affect others depending primarily upon their external appearance such as height, weight, facial features, color and other physical aspects and traits. Personality traits Personality traits are very important in organizational behavior. In particular, five personality traits especially related to job performance have recently emerged from research. Characteristics of these traits can be summarized as follows: 1. Extroversion: Sociable, talkative and assertive. 2. Agreeableness: Good-natured, cooperative and trusting. 3. Conscientiousness: Responsible, dependable, persistent and achievement-oriented. 4. Emotional Stability: Viewed from a negative standpoint such as tense, insecure and nervous. 5. Openness to Experience: Imaginative, artistically sensitive and intellectual. Identifying the above "big five" traits related to performance reveals that personality plays an important role in organizational behavior. Besides physical appearance and personality traits, the aspects of personality concerned with the self-concept such as self-esteem and self-efficacy and the person-situation interaction also play important roles. Personality formation The personality formation of an individual starts at birth and continues throughout his life. Three major types of factors play important roles in personality formation, which are as follows: • Determinants: The most widely studied determinants of personality are biological, social and cultural. People grow up in the presence of certain hereditary characteristics (body shape and height), the social context (family and friends) and the cultural context (religion and values). These three parts interact with • each other to shape personality. As people grow into adulthood, their personalities become very clearly defined and generally stable. • Stages: According to Sigmund Freud human personality progresses through four stages: dependent, compulsive, oedipal and mature. This concept of stages of growth provides a valuable perspective to organizational behavior. Experienced managers become aware of the stages that their employees often go through. This helps them 19 deal with these stages effectively and promote maximum growth for the individual and for the organization. • Traits: Traits to personality are also based on psychology. According to some trait theories, all people share common traits, like social, (political, religious and aesthetic preferences but each individual's nature differentiates that person from all others. Determinants of personality Peoples are very complex. They have different ability and interest. Personality is influenced by four major factors as: Family factors Cultural factors  ORGANISATION BEHAVIOUR    18   School of Distance Education    Personality  Social Factors  Situational  Factors  1. Cultural factors Culture largely determines what a person is and what a person will learn. Culture is the complex of the believes, values and techniques for dealing with the environment which are shared with the contemporaries and transmitted by one generation to the next. Norms, attitude, moral values, introducing and accepting changes etc will influence the personality. 2. Family Family is an important factor in shaping personality of an individual. The impact of these factors on the personality can be understood identification process. Identification starts when a person begins to identify himself with some other members of the family. Normally child tries to behave like father or mother. Home environment, family background, social class, parent education level, race, family relationship, geographical location, birth order, number of members in family etc will determine the personality development of an individual 3. Situational factors Situation extends an important press on individual. Every individual goes through different types of experience and events in his life. Some will influence his behaviour and some will change and modify his behaviour. Eg. A trauma suffered by a person, especially sex assault, affects his later life also. Timid/shy person performs his heroic acts in certain life saving situation, without caring for his own safety. 4. Social factors Socialization is a process by which an infant acquires from the enormously wide range of behavioral potentialities that are open to him at birth or customarily acceptable to the family and social groups. The contribution of family and social group in combination with the culture is known as socialization. It initially starts with the contact with the mother and later on the other members of the family, schoolmates, friends, and then colleagues at workspace and so on. An individual has to accept the norms of the society in which he exists. Personality factors in organization Some of the important personalities factors that determine what kind of behaviors are exhibited at work include the following: Need Pattern Steers and Braunstein in 1976 developed a scale for the four needs of personality that became apparent in the 'work environment. They are as follows: ORGANISATION BEHAVIOUR    19   School of Distance Education    • The need for achievement: Those with a high achievement need engage themselves proactively in work behaviors in order to feel proud of their achievements and successes. • The need for affiliation: Those in greater need for affiliation like to work cooperatively with others. • The need for autonomy: Those in need for autonomy function in the best way when not closely supervised. • The need for dominance: Those high in need for dominance are very effective while operating in environments where they can actively enforce their legitimate authority. Locus of Control Locus of control is the degree to which an individual believes that his or her behavior has direct impact on the consequences of that behavior. Some people, for example, believe that if they work hard they will certainly succeed. They, strongly believe that each individual is in control of his or her life. They are said to have an internal locus of control. By contrast, some people think that what happens to them is a result of fate, chance, luck or the behavior of other people, rather than the lack of skills or poor performance on their part. Because- these individuals think that forces beyond their control dictate the happenings around them, they are said to have an external locus of control. Introversion and Extroversion Introversion is the tendency of individuals, which directs them to be inward and process feelings, thoughts and ideas within themselves. Extroversion, on the contrary, refers to the tendency in individuals to look outside themselves, searching for external stimuli with which they can interact. While there is some element of introversion as well as extroversion in all of us, people tend to be dominant as either extroverts or introverts. Extroverts are sociable, lively and gregarious and seek outward stimuli or external exchanges. Such individuals are likely to be most successful while working in the sales department, publicity office, personal relations unit, and so on, where they can interact face to face with others. Introverts, on the other Hand, are quiet, reflective, introspective, and intellectual people, preferring to interact with a small intimate circle of friends. Introverts are more likely to be successful when they can work on highly abstract ideas such as R&D work, in a relatively quiet atmosphere. Since managers have to constantly interact with individuals both in and out of the organization and influence people to achieve the organization's goals, it is believed that extroverts are likely to be more successful as managers. Tolerance for Ambiguity This personality characteristic indicates the level of uncertainty that people can tolerate to work efficiently without experiencing undue stress. Managers have to work well under conditions of extreme uncertainty and insufficient information, especially when things are rapidly changing in the organization's external environment. Managers who have a high tolerance for ambiguity can cope up well under these conditions. Managers, who have a low tolerance for ambiguity may be effective in structured work settings but find it almost impossible to operate effectively when things are rapidly changing and much information about the future events is not available. Thus, tolerance for ambiguity is a personality dimension necessary for managerial success. Self-Esteem and Self-Concept Self-esteem denotes the extent to which individuals consistently regard themselves as capable, successful, important and worthy individuals. Self-esteem is an important personality factor that determines how managers perceive themselves and their role in the organization. Self-esteem is important to self-concept, i.e., the way individuals, define themselves as to who they are and derive their sense of identity. High self-esteem provides a high sense of self-concept, which, in turn, ORGANISATION BEHAVIOUR    20   

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