Organizational behavior Decision making process

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Published Date:18-07-2017
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Subject: OB Subject Code: HSSM 3205 Branch: B. Tech. all branches rd th Semester: (3 / 4 SEM) Lecture notes prepared by: Dr. Geetanjali Pradhan (Coordinator) Asst. Prof. Mathematics, Dept. of Mathematics and Humanities College Of Engineering and Technology, BBSR, BPUT i) Ms. Sai Rasmi Patra Lecturer in Management College Of Engineering and Technology, BBSR, BPUT ii) Mr. M. K. Behera Lecturer in Management College Of Engineering and Technology, BBSR, BPUT iii) Mr. S. K. Tripathy Lecturer in Management College Of Engineering and Technology, BBSR, BPUT Disclaimer: The lecture notes have been prepared by referring to many books and notes prepared by the teachers. This document does not claim any originality and cannot be used as a substitute for prescribed textbooks. The information presented here is merely a collection of materials by the committee members of the subject. This is just an additional tool for the teaching-learning process. The teachers, who teach in the class room, generally prepare lecture notes to give direction to the class. These notes are just a digital format of the same. These notes do not claim to be original and cannot be taken as a text book. These notes have been prepared to help the students of BPUT in their preparation for the examination. This is going to give them a broad idea about the curriculum. The ownership of the information lies with the respective authors or institutions. Further, this document is not intended to be used for commercial purpose and the committee faculty members are not accountable for any issues, legal or otherwise, arising out of use of this document. The committee faculty members make no representations or warranties with respect to the accuracy or completeness of the contents of this document and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. Organizational Behaviour Module I : The study of Organizational Behaviour : Definition and Meaning, Why Study OB Learning – Nature of Learning, How Learning occurs, Learning and OB. Foundations of Individual Behaviour : Personality – Meaning and Definition, Determinants of Personality, Personality Traits, Personality and OB. Perception – Meaning and Definition, Perceptual Process, Importance of Perception in OB. Motivation – Nature and Importance, Herzberg’s Two Factor Theory, Maslow’s Need Hierarchy Theory, Alderfer’s ERG Theory, Evaluations. Module II : Organizational Behaviour Process : Communication – Importance, Types, Gateways and Barriers to Communication, Communication as a tool for improving Interpersonal Effectiveness, Groups in Organizations – Nature, Types, Why do people join groups, Group Cohesiveness and Group Decision- making Managerial Implications, Effective Team Building. Leadership-Leadership & Management, Theories of Leadership-Trait theory, Leader Behaviour theory, Contingency Theory, Leadership and Follower ship, How to be an effective Leader, Conflict-Nature of Conflict and Conflict Resolution. An Introduction to Transactional Analysis (TA). Module-III : Organization : Organizational Culture – Meaning and Definition, Culture and Organizational Effectiveness. Introduction to Human Resource Management-Selection, Orientation, Training and Development, Performance Appraisal, Incentives Organizational Change – Importance of Change, Planned Change and OB techniques. International Organisational Behaviour – Trends in International Business, Cultural Differences and Similarities, Individual and Interpersonal Behaviour in Global Perspective. Organizational Behavior MODULE -1 Definition and Meaning Organizational behavior (often abbreviated OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge towardimproving an organization’s effectiveness. OB is the study of what people do in an organization and how their behavior affects the organization’s performance. OB includes the core topics of motivation, leader behavior and power, interpersonal communication, group structure and processes, learning, attitude development and perception, change processes, conflict, work design, and work stress. Why study OB? Today’s challenges bring opportunities for managers to use OB concepts. In this section, we review some of the most critical issues confronting managers for which OB offers solutions—or at least meaningful insights toward solutions. Responding to Economic Pressures When times are bad, though, managersare on the front lines with employees who must be fired, who are asked tomake do with less, and who worry about their futures. The difference between good and bad management can be the difference between profit and loss or,ultimately,between survival and failure. In good times, understanding how to reward, satisfy, and retain employees is at a premium.In bad times, issues like stress, decision making, and coping come to the fore. Responding to Globalization Organizations are no longer constrained by national borders all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.All major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa The world has become a global village. In the process, the manager’s job has changed. Increased Foreign Assignments If you’re a manager and you are transferred to your employer’s subsidiary in another country, you have to manage a workforce having different needs, aspirations, and attitudes. Working with People from Different Cultures To work effectively with people from different cultures, you need to understand how their culture, geography, and religion have shaped them and how to adapt your management style to their differences. Overseeing Movement of Jobs to Countries with Low-Cost Labor In a global economy, jobs tend to flow where lower costs give businesses a comparative advantage. It’s not by chance that many in the United States wear clothes made in China, work on computers whose microchips came from Taiwan, and watch movies filmed in Canada. Managing Workforce Diversity One of the most important challenges for organizations is adapting to people who are different. We describe this challenge as workforce diversity. Whereas globalization focuses on differences among people from different countries, workforce diversity addresses differences among people within given countries. Workforce diversity acknowledges a workforce of women and men; many racial and ethnic groups; individuals with a variety of physical or psychologicalabilities; and people who differ in age and sexual orientation. Improving Customer Service Management needs to create a customer-responsive culture. OB can provide considerable guidance in helping managers create such cultures—in which employees are friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what’s necessary to please the customer. Improving People Skills You’ll gain insights into specific people skills that you can use on the job. You’ll learn ways to design motivating jobs, techniques for improving your listening skills, and how to create more effective teams. Stimulating Innovation and Change An organization’s employees can be the impetus for innovation and change, The challenge for managers is to stimulate their employees’ creativity and tolerance for change. The field of OB provides a wealth of ideas and techniques to aid in realizing these goals. Coping with “Temporariness Today most managers and employees today work in a climate best characterized as “temporary. permanent employees are replaced with temporary workers. Managers and employees must learn to cope with temporariness, flexibility, spontaneity, and unpredictability. The study of OB can help you better understand a work world of continual change, overcome resistance to change, and create an organizational culture that thrives on change. Working in Networked Organizations Networked organizations use e-mail, the Internet, and video-conferencing allow employees to communicate and work together even though they are thousands of miles apart. The manager’s job in a networked organization requires different techniques from those used when workers are physically present in a single location. Helping Employees Balance Work–Life Conflicts Employees increasingly recognize that work infringes on their personal lives, and they’re not happy about it. Recent studies suggest employees want jobs that give them flexibility in their work schedules so they can better manage work–life conflicts. OB offers a number of suggestions to guide managers in designing workplaces and jobs that can help employees deal with work–life conflicts. Creating a Positive Work Environment organizations are trying to realize a competitive advantage by fostering a positive work environment which means practicing engagement, hope, optimism, and resilience in the face of strain. Improving Ethical Behavior Employees see people all around them engaging in unethical practices—elected official Employees paid expense accounts or take bribes; corporate executives inflate profits so they can cash in lucrative stock options; and university administrators look the other way when winning coaches encourage scholarship athletes to take easy courses. Managers and their organizations are responding to the problem of unethical behavior in a number of ways.They’re writing and distributing codes of ethics to guide employees through ethical dilemmas. They’re offering seminars, workshops, and other training programs to try to improve ethical behaviors. They’re providing in-house advisors who can be contacted, in many cases anonymously, for assistance in dealing with ethical issues, and they’re creating protection mechanisms for employees who reveal internal unethical practices LEARNING INTRODUCTION If a manager wants to explain and predict human behaviour, he/she needs to understand how learning occurs or how people learn. So it is very very necessary to know the nature, process and principles of learning. According to S.P. Robbins, “learning is any relatively permanent change in behavior that occurs as a result of experience.” LEARNING PROCESS/NATURE Theories of Learning: Learning is part of every one’s life. In our life, all complex behavior is learned. Learning is defined as any relatively permanent change in behavior that occurs as a result of experience. Whenever any change occurs learning is taken place in the individual. If an individual behaves, reacts, responds as a result of experience which is different from others, a person has encountered some new learning experience in his life. This definition consists of the following four key elements: i) Change process: Learning involves some change in oneself in terms of observable actions explicitly shown to others or change in one’s attitude or thought process occur with oneself implicitly. Change may be good or bad or positive or negative from an organization point of view. If a person is happened to experience some negative incidents, that person will hold prejudices or bias or to restrict their output. On the contrary, if a person is encountering some good incident, that person is likely to hold positive attitude. ii) Permanent change: Due to whatever exposure a person encounters, the impact what it generates may be long lasting and permanent. Hence, the change must be of relatively permanent. If change occurs due to fatigue or alcohol consumption or temporary adaptation, it may be vanished once the goal is achieved. iii) Setting behavioral actions: Explicit changes occurring in behavior is the main goal of learning process. A change in an individual’s thought process or attitudes without any changes in many explicit behavior will not be considered as learning process. iv) Need for meaningful experiences: Some form of experiences is necessary for learning. Experience may be acquired directly through observation or practice. If experience results in a relatively permanent change in behavior, one can confidently say that learning has taken place. Theories of Learning: There are three types of learning theories. These theories are classical conditioning, operant conditioning and social learning. FACTORS AFFECTING LEARNING  Motivation of the learner  Mental set of the learner  Nature of Learning Material  Practice  Environment CLASSICAL CONDITIONING THEORY Russian physiologist Ivan Pavlov developed classical conditioning theory. When he was doing a research on the chemical properties of saliva of dog, he noticed accidentally that the dog started salivating the moment hearing the sound of a door of cupboard clinging. Based on his observation, he wanted to do some experiment whether the dog can be conditioned to respond to any neutral stimuli. He used a simple surgical procedure to operate the salivary glands of a dog to measure accurately the amount of saliva. Pavlov’s Experiment: Pavlov conducted his experiment in three stages. Stage I: When Pavlov presented the dog with a piece of meat, the dog exhibited a noticeable increase in salivation. The meat is unconditional stimulus and salivation is unconditional response. Stage II: In this stage, the dog was not given a peace of meat but only exposed to a sound of ringing bell; the dog did not salivate to the mere sound of a ringing bell. Stage III: Pavlov decided to link both the presentation of meat and the ringing of a bell one after the other with an interval of 5 minutes. After repeatedly hearing the bell before getting the meat, the dog began to salivate as soon the bell rang. There is an association or link between meat and ringing a bell. After repeating the association between meat and ringing a bell, the dog started salivating merely at the sound of the bell, even if no food was offered. The dog is now conditioned to respond to a sound of a bell and started salivating. This is called classical conditioning process. Thus, classical condition is defined as the formation of S-R link (Stimulus-Response) or habit between a conditioned stimulus and a conditioned response through the repeated paring of conditioned stimulus with an unconditioned stimulus. In this experiment, the meat is unconditioned stimulus, and the expected response that is, salivating to the meat is called as unconditioned response. The sound of a bell is a neutral stimulus which does not have any property to elicit salivation, is called as conditioned stimulus. Although it was originally neutral, if the bell was paired with meat (unconditioned stimulus) it acquired the same property as meat eliciting the salivation. The sound of a bell produced salivation when presented alone. This is called conditioned response, that is, now the dog is conditioned to respond to the sound of a bell. Learning conditioned response involves building up an association between a conditioned stimulus and unconditioned stimulus. When the stimuli, one is natural and the other one neutral are paired, the neutral one becomes a conditioned stimulus and hence takes on the properties of the unconditioned stimulus. APPLICATION OF CLASSICAL CONDITIONING PRINCIPLES AT WORK Whenever President or Vice-President of Corporate Office visits factory site the employees in the shop floor will more attentive at work and look more prim, proper and active in their work life. It is quite natural that top management personnel visit (Unconditioned Stimulus) evoking or eliciting a desired response- being prim and proper at work from the employees (Unconditioned Response). The routine cleaning of windows or floor of the administrative office will be neutral stimulus never evoking any response from the employees. If the visit of the top management personnel is associated with such cleaning process, eventually the employees would turn on their best output and look prim and active the moment windows and floor are being cleaned up. The employees had learned to associate the cleaning of the windows with a visit from the head office. The cleaning process (conditioned stimulus) evoked attentive and active work behavior (conditioned response). Similarly, Christmas Carols songs bring pleasant memories of childhood as these songs are being associated with the festive Christmas Spirit. Classical conditioning is passive. It is elicited in response to a specific, identifiable event. OPERANT CONDITIONING Operant conditioned principle is proposed by B.F. Skinner, an American Psychologist. It is a type of conditioning in which desired voluntary behavior leads to a reward or prevent a punishment. Operant conditioning principle emphasizes strongly that the behavior of an individual is a function of its consequences. If the consequences are pleasant, the behavior associated with such consequences will be repeated again and again. If the consequences are unpleasant, the behavior will be in extinct. The rationale behind this theory is that people learn to behave in order to get something they want or to avoid something they don’t want. Operant condition is learned process. The tendency to repeat such behaviour is influenced by the reinforcement or lack of reinforcement brought about by the consequences of the behavior. The proper reinforcement strengthens a behavior and increases the likelihood that it will be repeated. Skinner’s Experiment: Skinner developed an apparatus to conduct a series of learning experiment using rats. He named that apparatus as Skinner’s Box which has certain features such as a lever, bowl, light, water container etc. A highly deprived rat is placed in the box. Once a rat nudges or touches or hits the lever attached in the corner of the box, a piece of food pellet is dropped in the bowl. By trial and error, the rat learns that hitting the lever is followed by getting a food pellet in the bowl. Skinner coined the term operant response to any behavioral act such as pressing or hitting or nudging the lever that has some effect on the environment. Thus in a typical experiment with a skinner box, hitting or pressing the lever is an operant response, and the increased rate of lever hitting or pressing that occurs when the response is followed by a pellet of food exemplifies operant conditioning. APPLICATION OF OPERANT CONDITIONING IN WORK LIFE If a sales person who hits the assigned target of sales quota will be reinforced with a suitable attractive reward, the chances of hitting further sales target in future will be exemplified. Skinner argued that creating pleasant consequences (giving attractive rewards) to follow specific forms of behavior (hitting sales target) would increase the frequency of that behavior. People will most likely engage in desired behaviors if they are positively reinforced for doing so. Rewards are most effective if they immediately follow the desired response. In addition, behavior that is not rewarded is less likely to be repeated. A commissioned sales person wanting to earn a sizeable income finds that doing so is contingent on generating high sales in his territory. COGNITIVE LEARNING THEORY Cognition refers to an individual’s thoughts, knowledge, interpretations, understandings or views about oneself and his/her environment. Based on it cognitive theory argues that the person tries to formhis/her cognitive structure in memory, which preserves and organizes all information relating to the events that may occur in learning situation. Here an experiment was conducted on a monkey by Kohler. Kohler presented two sticks to a monkey in a cage. Both sticks were too short to reach a banana lying outside cage. This produced an experience, or say, cognition, insight monkey. What monkey did without any prior exposure, joined both sticks together and pulled the banana inside the cage. Clearly learning took place inside the mind of monkey. Thus, the learning process involved in this case is putting or organizing bits of information in a new manner perceived inside the mind. This type of learning is very imp in organizational behaviour for changing attitudes by the individuals. SOCIAL LEARNING THEORY People learn through both observation and direct experience, which is called as social learning theory. Individual learn by observing what happens to other people and just by being told about something, as well as by direct experiences. By observing people around us, mostly from parents, teachers, peers, films and television performers, bosses, we learn new behavior pattern. The following four processes are vital to determine the influence that a model will have on an individual. i) Attention Process: People learn from a model only when they recognize and pay attention to its critical features. People tend to be most influenced by models that are attractive, repeatedly available similar to us in our estimation. ii) Retention Process: A model’s influence will depend on how well the individual remembers the model’s action after the model is no longer readily available. iii) Motor Reproduction Process: After a person has seen a new behavior by observing the model, the watching must be converted to doing. This process then demonstrates that the individual can perform the modeled activities. iv) Reinforcement Process: Individual will be motivated to exhibit they modeled behavior if positive incentives or rewards are provided. Behavior that is positively reinforced will be given more attention, learned better and performed more often. Personality Meaning and Definition personality is defined as the sum total of ways in which an individual reacts to and interacts with others. Personality Determinants An individual’s personality is the result of heredity and environment. Heredity refers to factors determined at conception. Heredity approach argues that the ultimate explanation of an individual’s personality is the molecular structure of the genes, located in the chromosomes. Physical environment determines cultural development and to the extent, that culture in turn determines personality, a relationship between personality and environment becomes clear. Climate and topography determine to a great extent the physical and mental traits of a people. The people of mountains as well as deserts are usually bold, hard and powerful. PERSONALITY TRAITS Big Five Model gives five basic personality traits presented below. ● Extraversion. The extraversion dimension captures our comfort level with relationships. Extraverts tend to be gregarious, assertive, and sociable. Introverts tend to be reserved, timid, and quiet. ● Agreeableness. The agreeableness dimension refers to an individual’s propensity to defer to others. Highly agreeable people are cooperative, warm, and trusting. People who score low on agreeableness are cold, disagreeable, and antagonistic. ● Conscientiousness. The conscientiousness dimension is a measure of reliability. A highly conscientious person is responsible, organized, dependable, and persistent. Those who score low on this dimension are easily distracted, disorganized, and unreliable. ● Emotional stability. The emotional stability dimension—often labeled by its converse, neuroticism—taps a person’s ability to withstand stress. People with positive emotional stability tend to be calm, self-confident, and secure. Those with high negative scores tend to be nervous, anxious, depressed, and insecure. ● Openness to experience. The openness to experience dimension addresses range of interests and fascination with novelty. Extremely open people are creative, curious, and artistically sensitive. Those at the other end of the category are conventional and find comfort in the familiar. PERSONALITY AND OB Here we would discuss How the Big Five personality Traits affect OB Criteria. Emotional stability WHY IS IT RELEVANT? • Less negative thinking and fewer negative emotions • Less hyper-vigilant WHAT DOES IT AFFECT? • Higher job & life satisfaction • Lower stress levels Extroversion WHY IS IT RELEVANT? • Better interpersonal skills • Greater social dominance • More emotionally expressive WHAT DOES IT AFFECT? • Higher performance • Enhanced leadership • Higher job & life satisfaction Openness WHY IS IT RELEVANT? • Increased learning • More creative • More flexible & autonomous WHAT DOES IT AFFECT? • Training performance • Enhanced leadership • More adaptable to change Agreeableness WHY IS IT RELEVANT? • Better liked • More compliant and Conforming WHAT DOES IT AFFECT? • Higher performance • Lower levels of deviant behavior Conscientiousness WHY IS IT RELEVANT? • Greater effort & persistence • More drive and discipline • Better organized & planning WHAT DOES IT AFFECT? • Higher performance • Enhanced leadership • Greater longevity Other Personality Traits Relevant to OB The other personality traits are Machiavellianism, narcissism, self-monitoring, propensity for risk taking, proactive personality, and other-orientation. core self-evaluation Bottom-line conclusions individuals have about their capabilities, competence, and worth as a person. Machiavellianism The degree to which an individual is pragmatic,maintains emotional distance, and believes that ends can justify means. narcissism The tendency to be arrogant, have a grandiose sense of self-importance, require excessive admiration, and have a sense of entitlement. self-monitoring A personality trait that measures an individual’s ability to adjust his or her behavior to external, situational factors. High risk-taking managers made more rapid decisions and used less information than did the low risk takers. Interestingly, decision accuracy was the same for both groups. proactive personality People who identify opportunities, show initiative, take action, and persevere until meaningful change occurs. Other-orientation, a personality trait that reflects the extent to which decisions are affected by social influences and concerns vs. our own well-being and outcomes. It appears that having a strong orientation toward helping others does affect some behaviors that actually matter for organizations. PERCEPTION Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. Factors That Influence Perception A number of factors influence perception. There are three factors influencing perception which are related to the perceiver, factors relate d to the target, Factors related to the situation. FACTORS RELATED TO THE PERCEIVER i)Projection: The perceiver tries to project his personality attributes in others is known as projection. ii)Mental makeup: The perceiver has pre set notion in his mind about certain objects, events and people. The moment he has to deal or act upon those events, he already knows how to act or react as he has made his mental set up to deal with such situations. iii)Stereotyping: Judging someone on the basis of one’s perception of the group to which that person belongs. In organizations, we frequently hear comments that represent stereotypes based on gender, age, race, religion, ethnicity, and even weight . “Men aren’t interested in child care,” “Older workers can’t learn new skills,” “Asian immigrants are hardworking and conscientious.” iv) Halo Effect: . When we draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance, a halo effect is operating. v) First Impression :The perceiver forms an impression about the perceived when he meets him for the first time. First impression is normally difficult to change vi) Recency Effect: Recency effect is the effect that the recent event has on the perceiver. During performance appraisal, the employees are rated on the basis of their latest performance. FACTORS RELATED TO THE TARGET Characteristics of the target also affect what we perceive. Loud people are more likely to be noticed in a group than quiet ones. So, too, are extremely attractive or unattractive individuals. Because we don’t look at targets in isolation, the relationship of a target to its background also influences perception, as does our tendency. FACTORS RELATED TO THE SITUATION: Situation matters too. Factors in the situation are time,work setting and social setting The time at which we see an object or event can influence our attention, as can location, light, heat, or any number of situational factors. PERCEPTUAL PROCESS: Stage I: Receiving stimuli : The perception process starts with receiving stimuli. It depicts the environmental stimuli being received by the fives sense organs. Stage II: Selection of the Stimuli: In this stage, selection of some stimuli happens for further processing while the rest are screened out. This is governed by both factors external to the individual, such as the size, intensity, repetition, contrast and internal to the individual, such as the self concept, belief, expectation, response disposition of the perceiver. Stage III: Organisation of stimuli : The selected stimuli is organized in the perceiver’s mind to give it a meaningful term. The perceiver is influenced by figure and ground and percetual grouping . Figure and Ground: What a person observes is dependent on how a central figure is being separated from its background. This implies that the perceived object or person or event stands out distinct from its background and occupies the cognitive space of the individual. In a dance programme, the spectators’ tend to perceive the dance performance against the back ground music, backdrop setup etc. The perceiver thus tends to organize only the information which stands out in the environment which seems to be significant to the individual. Perceptual Grouping: It means grouping stimuli into an organized pattern. It happens on the basis of proximity, similarity and closure. Proximity: People tend to perceive things, which are nearer to each other, as together as group rather than separately. If four or five members are standing together, we tend to assume that they are belonging to same group rather than as separately. As a result of physical proximity, we often put together objects or events or people as one group even though they are unrelated. Employees in a particular section are seen as group. Similarity: Persons, objects or events that are similar to each other also tend to be grouped together. This organizing mechanism helps us to deal with information in an efficiently way rather than getting bogged down and confused with too many details. For examples, if we happen to see a group of foreign nationals at an International seminar, Indians are grouped as one group, British as another, Americans as yet another based on the similarity of nationalities. Closure: In many situation, the information what we intend to get may be in bits and pieces and not fully complete in all respects. However, we tend to fill up the gaps in the missing parts and making it as meaningful whole. Such mental process of filling up the missing element is called as closure. For example, while giving promotions to the staff members, the managers will try to get full information to make an effective decision, in absence of getting complete information, managers try to make meaningful assumptions and based on that suitable decision will be made. Stage IV: Interpretation: Assigning meaning to data is called interpretation. Once the inputs are organized in human mind, the perceiver interpretes the inputs and draws conclusion from it.But interpretation is subjective as different people interpret the same information in different ways. Stage V: Behavior Response or Action: In this stage the response of the perceiver takes on both covert and overt characteristics. Covert response will be reflected in the attitudes, motives, and feelings of the perceiver and overt responses will be reflected in the actions of the individual. IMPORTANCE OF PERCEPTION IN OB People in organisations are always assessing others. Managers must appraise their subordinate's performance, evaluate how co-workers are working. When a new person joins a department he or she is immediately assessed by the other persons. These have important effect on the organisation. Employment Interview: Employment interview is an important input into the hiring decision, and perceptual factors influence who is hired and vis-à-vis the Quality of an organistaions labour force. Performance Appraisals: Performance appraisal is dependent on the perceptual process. An employee’s future is closely tied to the appraisal—promotion, pay raises, and continuation of employment are among the most obvious outcomes. Assessing Level of Effort: In many organisations, the level of an employee's effort is given high importance. Assessment of an individual's effort is a subjective judgment susceptible to perceptual distortions and bias. Assessing Loyalty: Another important judgment that managers decide about employees is whether they are loyal to the organisation. Productivity: What individuals perceive from their work situation will influence their productivity. More than the situation itself than whether a job is actually interesting or challenging is not relevant. How a manager successfully plans and organises the work of his subordinates and actually helps them in structuring their work is far less important than how his subordinates perceive his efforts. Therefore, to be able to influence productivity, it is necessary to assess how workers perceive their jobs. Absenteeism and Turnover: Absence and Turnover are some of the reactions to the individuals perception. Managers must understand how each individual interprets his job. and where there is a significant difference between what is seen and what exists and try to eliminate the distortions. Failure to deal with the differences when individuals perceive the job in negative terms will result in increased absenteeism and turnover. Job Satisfaction: Job satisfaction is a highly subjective, and feeling of the benefits that derive from the job. Clearly his variable is critically linked to perception. If job satisfaction is to be improved, the worker's perception of the job characteristics, supervision and the organisation as a whole must be positive. Understanding the process of perception is important because (1) It is unlikely that any person's definition of reality will be identical to an objective assessment of reality. (2) It is unlikely thattwo different person’s definition of reality will be exactly the same. (3) Individual perceptions directly influences the behaviour exhibited in a given situation. MOTIVATION Nature and importance of Motivation: We define motivation as the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. Importance of Motivation To increase work efficiency To combine ability with willingness To reduce the rate of labour turnover To develop the leadership quality THEOREIS OF MOTIVATION Maslow’s Hierarchy of Needs The best-known theory of motivation is Abraham Maslow’s hierarchy of needs . 5 Maslow hypothesized that within every human being, there exists a hierarchy of five needs: 1. Physiological. Includes hunger, thirst, shelter, sex, and other bodily needs. 2. Safety. Security and protection from physical and emotional harm. 3. Social. Affection, belongingness, acceptance, and friendship. 4. Esteem. Internal factors such as self-respect, autonomy, and achievement, and external factors such as status, recognition, and attention. 5. Self-actualization. Drive to become what we are capable of becoming; includes growth, achieving our potential, and self-fulfillment. Although no need is ever fully gratified, a substantially satisfied need no longer motivates. Thus as each becomes substantially satisfied, the next one becomes dominant. So if you want to motivate someone, according to Maslow, you need to understand what level of the hierarchy that person is currently on and focus on satisfying needs at or above that level, moving up the steps in. Implications of Maslow’s Hierarchy of Needs Theory This model helps the managers to understand and deal with issues of employee motivation at the workplace. This model can be applied to motivate people at all levels in the organization. Managers who understand the need patterns of their staff can help the employees to engage in the kinds of work activities and provide the types of work environment that will satisfy their needs at work. For instance, the employees love and belonging needs can be fully satisfied by organizing yearly dinner and dance program, office week end parties, creating recreation clubs or social clubs etc. Fortunately, the workplace has the potential to offer need gratification for several different types of needs, and mangers can motivate employees by giving appropriate organizational support which will gratify individual’s needs. Thus, despite its drawbacks, Maslow’s theory offers managers a good technique on understanding the motives or needs of individuals and how to motivate organizational members. Herzberg’s Two-Factor Theory of Motivation Herzberg’s Two-Factor Theory is also called motivation-hygiene theory. A theory that relates intrinsic factors to job satisfaction and associates extrinsic factors with dissatisfaction. hygiene factors Factors—such as company policy and administration, supervision, and salary—that, when adequate in a job, placate workers. Herzberg argued that improvement in the hygiene factors would only minimize dissatisfaction but not increase satisfaction and motivation Motivating Factors The presence of motivating factors always ensures job satisfaction and happiness among the employees. They are: achievement, recognition, responsibility, advancement, growth and the work itself. These motivating factors are relating to the work content factors. Implications for Managers In Herzberg’s framework, these managerial reactions have focused primarily on the hygiene factors surrounding the job, which has resulted in bringing individual to the theoretical “zero point” of motivation. The two-factor theory would predict that improvements in motivation would only appear when managerial action focused not only the factors surrounding the job but on the inherent in most assembly line jobs and developing jobs that can provide increased levels of challenge and opportunities for a sense of achievement, advancement, growth and personal development. ERG THEORY: ERG Theory: Alderfer proposed a modified version of Maslow’s need hierarchy and labeled as ERG theory. Alderfer’s ERG refers to three groups of core needs – Existence, Relatedness and Growth(ERG).

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