Principles of Management and Organisational Behaviour

💫
Principles of Management and

Organisational Behaviour
Notes_01 (22.08.23) //introduction
Introduction- Organisational behaviour and its key elements
What is organisational behaviour?

Organisational behaviour is the study and application of knowledge
about how people as individuals and as groups act within an
organisation.
How have some behavioural scientists defined organisational

behaviour?
"OB is directly concerned with the understanding,

prediction and control of human resources and their
behaviour in organisations.”— Fred Luthans
"OB is a field of study that investigates the impact that

individuals, groups and structure, have on behaviour
Principles of Management and Organisational Behaviour 1

in organisations for the purpose of applying such
knowledge towards improving an organisation's
effectiveness." — Stephen Robbins
What are some key elements of organisational behaviour?
People, technology, environment, structure
How are people a key element of OB?
People consist individuals and groups.
Though people have much in common, they differ from each other.
There is a difference in people's traits, intelligence, personality,

etc.
Individual differences need to be treated by the manager

differently.
OB studies an individual as a whole and the behaviour he displays

is directed towards certain goals.
There is a cause behind every human behaviour, thus, a manager

needs to treat each and every employee separately with dignity
and not consider them as economic tools.
How is structure a key element of OB?
Organisations are social systems.
There are two types of social systems--informal and formal.
The formal relationship between people in an organisation is

known as STRUCTURE.
How is technology a key element of OB?
Technology provides the resources with which people work.
It also affects the tasks that people perform.
What is environment and how is it a key element of OB?
All organisations operate within an internal and external

environment, no organisation exists alone.

An organisation is a part of a larger system that contains other
factors and elements such as government, family, and other
organisations.
All of them mutually influence one another in a complex way.
Thus, organisations are influenced by the external environment.
Internal environment includes attitudes of people and working

conditions and infrastructure of the organisation.
Hence, environment is one of the key elements of OB.
Which, in your opinion, is the most important element of organisational

behaviour?
I think people are the most important element of organisational

behaviour. Without human resources there is no hope to even have a
business and the other elements are rendered irrelevant. It is certainly
one of the most complicated of the elements as managing the
individual traits of people can be challenging and require experience
and tact but the payoff is worth it.
Notes_02 (24.08.23) //introduction contd.
Nature of Organisational Behaviour [6]
1. A separate field of study and not a discipline only
2. An interdisciplinary approach that integrates relevant knowledge from

related discipline
3. It is an applied science
4. It is humanistic in nature and has an optimistic approach
5. It is a normative science
6. It is a total systems approach
Scope of Organisational Behaviour

The scope of OB includes the study of groups and organisational structure

Individuals Groups Structure
Personality Group dynamics Organisational culture
Perception Group conflicts Organisational change
Attitude Communication Organisational development
Motivation Leadership
Job Satisfaction Power and politics
Learning
Values
The Need to Study Organisational Behaviour [6]
The study of OB benefits us in many ways—
1. It helps us to understand ourselves and others in a better way. This

helps greatly in improving interpersonal relations within an
organisation which helps create a congenial work environment.
2. The knowledge of OB helps the managers to know individual

employees better and motivate employees to work for better results.
3. It helps managers apply motivational techniques in accordance to the

nature of individual employees who exhibit glaring differences in many
respects.
4. One of the basic characteristics of OB is that it is humane in nature. It

helps understand the cause of any problem, predict its future course
of action and controls its consequences, thus, managers create peace
and harmony within an organisation while maintaining cordial
relationships.
5. The main reason for studying OB is to learn how to predict human

behaviour and then apply it to make the organisation more effective.
6. The effective utilisation of human resources in the organisation

guarantees the success of the organisation. OB helps manage human
resources in the organisation, enabling managers inspire and motivate
employees towards higher productivity and better results.
Trends and future prospects in OB

Globalisation, changes in technology and other changes in the external
environment has a major impact on the way organisations work, as a result
the field of OB has undergone significant changes. Some of the changes
that will affect OB are:
1. Reduction in number of middle-management personnel. The

downsizing will lead to additional responsibility and consequently, the
role of middle-managers will expand significantly.
2. Increasing use of computers and information technology will be seen.
3. Entry of minorities and women in the workforce will definitely increase

diversity in the workforce.
4. Co-operation between management and unions- though it is not easy.

It will require a lot of effort from both sides.
5. Innovative work approaches for special needs of employees, these

approaches will include flexitimes, job-sharing, leave encashment, all
of which used by the organisations will help employees meet their
personal and professional commitments.
Notes_03 (25.08.23)
What is personality?
Personality as specific characteristics of individuals may be open or

hidden and which may determine either commonality or differences in
behaviour in an organisation.
→ Some people are very silent and submissive and others are social and
aggressive
→ Some are punctual and hardworking whereas others lack punctuality

and are lazy
→ Some are assertive and optimistic while others are shy and pessimistic
The personalities and attitudes of people are too difficult and complex to
be interpreted
An employee’s personality together with his attitude determines his
behaviour and performance in his job.

How do you define personality?
Personality can be defined as the sum total of ways in which an individual
interacts with people and reacts to a situation.
Key determinants of personality
Heredity, brain, environment, situation
Role of heredity and the brain in personality
1. The biological, physiological, and psychological characteristics

that an individual is born with constitutes heredity.
2. According to the heredity approach of personality- an individual

personality is determined by the type of genes he inherits from his
parents
3. The brain, because of breakthroughs in science and technology, it

is now being revealed that specific region of the brain is linked to
specialised roles.
Role of environment in personality
1. The environment that an individual is exposed to also plays an

important role in shaping his personality.
2. The environmental factors also includes the culture of the society,

the norms set by parents, teachers, and social groups with which
the individuals interact and other situations and experiences he
undergoes in his life.
3. The complementary nature of heredity and the environment can be

understood with the help of a simple relationship between seed,
land, and crop- A poor quality seed (heredity) cultivated on a fertile
land (environment) might yield a good crop (outcome) and on the
other hand a good quality seed cultivated on a barren land may
also yield a good crop.
Role of situation in personality
1. Apart from heredity and environment, the situation in which and

individual is, can also influence his personality.

What are the two perspectives of personality theories
If we accept that personality is the driving force influencing a range of

innate characteristics of the individual then we need tos ee how
personality is formed.
Two important perspectives concerning personality has been called-
1. Nomothetic perspective
👉🏾 This approach strongly supports the view that personality is

fixed and determined by heredity and cannot be significantly
influenced by environmental factors. This approach suggests
that there are a number of clear personality types that can be
identified and which can be measured to predict behaviour in an
organisation
1. Idiographic perspective
👉🏾 While it recognises individuals to have unique traits it also

suggests that personality can be moulded and that behaviour
and personality are both influenced by specific environmental
experiences.
Trait theories
🧠 Big five personality trait theories- Research has shown that

there are five important traits that form the basis of an
individual’s total personality and affects his performance at work-
Extraversion
1. This refers to the extent to which a person is comfortable with

other people. Extroverts tend to develop new relations easily.
People who are low in extraversion are called introverts. They

prefer to be by themselves instead of talking to others. They are
reluctant to interact with people and avoid new relationships.
2. An individual’s degree of extraversion has an influence on his job

preference as well as his job performance.
3. People with high extraversion prefer jobs with a relatively high

degree of human interaction such as sales, marketing, or human
resources.
Agreeableness
1. This refers to the extent to which a person subjugates his interests

for the sake of the group.
2. People who are very agreeable give importance to maintaining

harmony and do not insist that others agree to what they or follow
their suggestions.
3. Agreeable people are good natured, cooperative and trusting.

People who are less agreeable give more importance to their own
needs, opinions, and values than that of the others.
4. From an organisation’s perspective, highly agreeable people are

likely to develop good working relationships with all organisational
constituents.
Conscientiousness
1. This trait refers to an extent to which a person is responsible and

achievement oriented. Very conscientious persons limit the
number of goals they have set for themselves.
2. They are responsible, and dependeable, persistent and highly

achievement oriented. They perform better in jobs than the less
conscientious people.
Emotional stability
1. This trait determines an individual’s ability to withstand stress.

They are enthusiastic about their jobs and are capable of
withstanding the tensions and pressures related to their work.

People with negative emotional stability are emotionally insecure,
experience feelings of anxiety, nervousness, and depression.
Openness to experience
1. This personality trait refers to an individual’s range of interests and

indicates how innovative or rigid he is in his beliefs.
2. An individual with high levels of opennesss tends to be a very

creative person and has wide range of interests. They make good
workers and they tend to have job-training proficiency. They make
better decisions in any training with problem-solving simulations
Notes_04 (15.09.23) ❌
Free class
Notes_06 (22.09.23)
Self concept: self efficacy + self esteem
1. People’s attempt to understand themselves is called self concept in

personality theory
2. The self is a unique product of many interacting parts and may be

thought of as the personality viewed from within
3. The self is particularly relevant to the widely recognised concept of

self-esteem.
4. Self esteem is related to an individual’s self perceived competence and

self image
5. Definition: Self perceived value that individuals have of themselves as

organisation members acting within an organisation concept
6. This is also called organisation based self esteem (OBSE)
Self Efficacy
1. It refers to a person’s perception of ability to cope with different

situations.
2. People with high self efficacy have the capacity and capabilities and
the required confidence to rise above the situation

3. One major difference between the two concepts- self esteem is a
general trait. It is present in all situations whereas self efficacy is
situation specific.
4. Self efficacy is measured along three dimensions: level, strength,

generality.
Trait theories for the nomothetic approach
1. Because it is suggested that people have certain inherent traits which

determine their personality and thus their behaviour.
Jung’s personality theory (1920s)
1. This theory was pioneered by Swiss psychiatrist Carl Jung. This theory
has more practical implications and has led to the designing of
different types of personality tests.
2. Jung’s first dimensions used were personality types- extrovert and

introvert.
3. The second dimension was types of perception- sensing and intuiting
4. The third dimension was judgement- thinking and feeling
5. The fourth dimension was environment related- judging and perceiving
6. Jung felt that all people had all four dimensions in common, they differ
in the combination of their preference of each
7. Importantly he made a point that one’s preference was not necessarily

better than others, only different.
8. The significance of the theory states that his concepts were used by
Myers-Brigg to develop the Myers-Brigg Type Indicator (MBTI)
MBTI (1940s)
1. This is a widely used and very popular indicator testing that is used in
the real world- career counselling, team building, conflict
management, and analysing management style.
2. About 25 years after Jung developed his theoretical type in 1940s, the
mother-daughter team of Katherine Briggs and Isabel Briggs-Myers
developed about a 100 item personality test asking participants how

they usually feel or act in particular situations in order to measure the
preferences on the 4 pairs of traits, yielding 16 different and distinct
types called the Myers-Brigg Type Indicator or simply MBTI.
Characteristics of the different dimensions
The table summarises the characteristics of the four main dimensions

which is a combination of different traits that will yield 16 distinct
types.
Example: ESTJ is an extroverted, sensing, thinking, and judging

person. This personality type would make a good manager because
they interact well with people and make objective decisions. They like
structure and schedules.
Why is this theory used so widely?
As Jung emphasised in his theory, there are no good or bad types.

This is the main reason that MBTI is such a psychologically non-
threatening, commonly used personality theory
What is a drawback of this theory?

Although MBTI was shown to have reliability and validity as a measure
to identify Jung's personality types and predicting occupational choice
there still isn't enough support to base selection decisions or predict
job performance.
Learning
/missed a line/
1. Develop and manage human resources in an organisation in order to

explain and predict behaviour of people in organisations we must
understand the way in which people learn.
2. A learning organisation is one which is skilled at creating acquiring and

transferring knowledge and modifying behaviour to reflect new
knowledge and insights.
3. The concept of learning organisation is an indicator of it's growing

popularity. This is also because all behaviour are learned either
directly or indirectly.
4. The skills of a worker, the attitude of a manager, an accountant's style

of dressing-these are all learned behaviours.
5. Learning impacts practically all aspects of organisational behaviour. By

applying the processes and principles associated with learning
organisations can mold the behaviour of employees to enhance their
performance.
Learning theories
1. Many efforts haven made to develop theories of learning. The most

widely recognise theoretical approaches are:
Behaviouristic theory
Well known classical behaviourist Ivan Pavlov, John B. Watson
considered learning as an association of stimulus response (SR
connection) but B. F. Skinner, an operant behaviourist believed
that learning occurs as a consequence of a behaviour.
Learning is due to the consequence that follows the response
which influences the repetition of the response. Thus, operant

response stimulus or RS connection.
Cognitive theory
Social learning theory
Practice questions:
Explain the significance of self-efficacy in the context of organizational

behavior and how it influences an individual's performance within an
organization.
Self-efficacy, a vital concept in organizational behavior, refers to an
individual's perception of their ability to handle diverse situations.
Individuals with high self-efficacy possess the capacity and confidence to
effectively navigate through various challenges encountered in the
workplace, significantly influencing their performance and behavior within
an organization.
Distinguishing itself from self-esteem, self-efficacy is situation-specific,

reflecting an individual's confidence in their competence across different
circumstances. Its measurement involves three critical dimensions: level,
generality, and strength, which collectively gauge the extent and
robustness of an individual's belief in their capabilities.
High self-efficacy fosters a proactive approach to tasks, influences
decision-making, and positively impacts an individual's performance. In
organizational settings, employees with strong self-efficacy are more likely
to set challenging goals, persevere in the face of obstacles, and exhibit
resilience, ultimately contributing to enhanced job performance and
organizational effectiveness.
How does the study of Organisational Behaviour benefit managers in

improving the work environment within an organization?
The study of Organisational Behaviour offers numerous advantages to
managers in enhancing the work environment within an organization.
Firstly, it aids in comprehending and predicting individual behaviors,
allowing managers to develop a deeper understanding of their employees.
This knowledge enables them to tailor motivational techniques according

to the distinctive nature and needs of each employee. By recognizing and
respecting individual differences, managers can create a congenial work
environment, fostering better relationships among employees.
Furthermore, Organisational Behaviour's humanistic approach emphasizes
understanding the causes of problems, predicting future actions, and
controlling their consequences. This approach promotes harmony within
the organization and nurtures positive relationships. Studying
Organisational Behaviour also helps managers effectively utilize human
resources within the organization. By inspiring and motivating employees,
managers can drive higher productivity and better results, ensuring the
success of the organization
Steps of Planning
Reference PDF
https://prod-files-secure.s3.us-west-2.amazonaws.com/01af4981-d
89a-474d-81ad-50f55711277a/3eddaed3-31ba-466e-8b4b-bec57e
5ef8dc/POM-_Steps_of_Planning.pdf
The main steps that are taken in planning process are as follows:
Establishing Objectives
1. Establishing the objectives is the first step in planning. Plans are

prepared with a view to achieve certain goals. Hence, establishing the
objectives is an important step in the process of planning.
2. Plans should reflect the enterprise’s objectives. Objectives should

clearly define as to what is to be achieved by policies, procedures,
rules, strategies, budgets and programmes. Plan must make sure that
every activity undertaken contributes to the achievement of objectives.
3. The objectives fixed must clearly indicate what is to be achieved,

where action should take place, who is to perform it, how it is to be
undertaken and when it is to be accomplished.

4. Managers should be able to restate the objectives of the firm in
definite and clear terms that will motivate examination and evaluation
of performance against targeted performance in the plan.
5. Objectives should be measurable.
6. //Objectives should be specific, measurable, achievable, relevant, and

time-bound (SMART criteria)
7. //Regular evaluation and and adjustment to the objectives is essential

to adapt to changing circumstances
Determining Planning Premises
1. This is the second step in planning. Premises include actual forecast

data, policies and plans of the enterprise. Planning involves looking
into the future which necessitates the enterprise to know, how future
conditions will affect its activities. Thus, forecasting is an important
step in planning. There are two types of forecasting namely,
a. Prediction of general economic conditions.
b. Prediction of market conditions for a specific product or service

dealt with by the enterprise.
2. Keeping the general economic conditions in mind, a study of the

industry is made. Then the manager proceeds to make a study of his
company’s share of the market. Forecasting will reveal those areas
where control is lacking. Planning will be reliable when the forecast
methods are accurate. Hence, the success of the planning depends
very much upon the forecasts.
Determining Alternative Courses
1. Determining alternative courses is the third step in the planning

process. The planner should study all the alternatives, consider the
strong and weak points of them and finally select the most promising
ones.
Evaluating Alternative Courses
1. Alternative courses so selected should be evaluated in the light of

premises and goals. Evaluation involves the study of performance of

various actions. Various factors such as profitability, investment
requirements, etc., of such alternatives should be weighed against
each other. Each alternative should be closely studied to determine its
suitability.
2. Many other factors such are uncertain future trend, problems faced
financially, and future uncertainties renders the evaluation process,
complex and difficult. Usually, alternative plans are evaluated against
factors such as cost, risks, benefits, organizational facilities, etc.
Computer based mathematical plans and techniques can also be
utilized to identify best course of action.
Selecting the Best Course
1. After having evaluated the various alternatives, the most suitable

alternative is selected. With this, the plan can be considered to have
been adopted. It is exactly the point at which decisions are made.
Sometimes, in the best interests of the enterprise, several alternative
courses can be adopted.
Formulating Derivative Plans
1. Planning is not complete as soon as the best course is selected. The

main plan should be supported by a number of derivative plans. Within
the framework of a basic plan, derivative plans are formulated in each
functional area. Segregation of master plan into departmental,
sectional and individual plans, helps to understand the real nature of
future uncertainties. To make the planning process more effective, it
should also provide for a feedback mechanism. These plans are meant
for the implementation of the main plan.
Implementation of Plans
1. Implementation of plans is the final step in the process of planning.

This involves putting the plans into action so as to achieve the
business objectives Implementation of plans requires establishment of
policies, procedures, standards, budgets, etc.

Practice questions
What is the primary significance of establishing objectives in the
planning process?
💡 Establishing objectives is the fundamental cornerstone and initial

stage in the planning process. Plans are meticulously designed
with the specific intent of achieving predetermined goals and
objectives. These objectives should ideally mirror the
organization's broader mission and vision, guiding the
formulation of strategies, budgets, rules, procedures, and
policies. Every action undertaken within the organization must
contribute to the realization of these objectives.
Furthermore, an effective objective should adhere to the
SMART criteria - Specific, Measurable, Achievable, Relevant,
and Time-bound - a concept proposed by George T. Doran in
the 1980s. The SMART framework emphasizes the importance
of setting clear, quantifiable, achievable, and time-sensitive
goals for enhanced planning and execution.
Evaluating and adjusting objectives regularly is crucial to adapt
to dynamic market conditions and evolving organizational needs.
This principle aligns with the philosophies of management
luminaries such as Peter Drucker. Drucker, a renowned
management consultant, advocated for the continual
reassessment and modification of objectives to ensure
ongoing alignment with the organization's overarching goals.
In summary, establishing objectives is the bedrock of successful
planning, directing every action towards achieving organizational
success through clarity, measurability, adaptability, and
alignment with the SMART criteria and the insights from
management experts like George T. Doran and Peter Drucker.
What is the role of forecasting in the determination of planning

premises?

💡 The determination of planning premises, the second critical
step in the planning process, involves the essential task of
setting the groundwork for informed decision-making.
Premises encompass actual forecast data, policies, and
enterprise plans. Notably, the significance of forecasting cannot
be overstated as it forms the bedrock for effective planning.
Forecasting, a vital component of this step, serves the pivotal
role of providing a glimpse into future market conditions. It
encompasses two key types: a general forecast regarding the
overall economic conditions and a specific forecast related to
the market for a particular product or service offered by the
company. Managers utilize these forecasts by conducting an in-
depth analysis of both the industry and the company's market
share, thereby unveiling any areas that may require attention or
improvements.
Forecasting equips organizations with invaluable insights into

potential market trends and conditions, empowering them to
anticipate challenges and opportunities. By gauging economic
and market dynamics, companies can make strategic decisions,
identify potential shortcomings, and capitalize on emerging
prospects. Numerous methodologies and tools aid in this
process, such as trend analysis, regression models, or scenario
planning, allowing businesses to develop informed strategies and
enhance their competitive edge.
In essence, forecasting serves as a linchpin in planning,
enabling organizations to anticipate market shifts, rectify
deficiencies, and seize advantageous prospects, thereby
laying a robust foundation for effective decision-making and
planning.
Why is the evaluation of alternative courses essential in the planning

process?

💡 Evaluating alternative courses in the planning process is
crucial to determine the most suitable path forward. The
selected alternatives need to align with the established premises
and goals, weighing the performance of various actions against
the company's objectives. Essential factors like profitability,
investment risk, and other pertinent considerations must be
thoroughly assessed and compared to determine the best
course of action.
The evaluation process can be complex due to uncertainties in
future trends or financial challenges, and it involves weighing
plans against factors like cost, risk, and benefit. Additionally,
the utilization of computer-based mathematical programs aids in
determining the optimal course of action, providing a more data-
driven approach to decision-making.
Effectively evaluating alternative courses not only assists in

risk assessment and resource optimization but also
streamlines decision-making, ensuring that the chosen course
aligns with the organization's strategic objectives and
mitigates potential risks.
Management Theories
Definition: Management is a process of designing and maintaining an
environment in which individuals working together in groups efficiently
accomplish selected aims
1. As managers, people carry out the managerial functions of planning,

organising, staffing, leading, and control.
2. Management applies to any kind of organisation.
3. Management applies to managers at all organisational levels.
4. The aim of all managers is the same.

5. Managing is concerned with productivity which implies effectiveness and
efficiency.
6. Major contributors to management approaches and thought.
Approach Theory name Major contributors
1. F.W. Taylor
Classical Scientific management 2. Frank and Lillian Gilbert
3. Henry Gnatt
Max Webber
Bureaucratic management
Administrative
Henry Fayol
management
Behavioural Group influences Mary Parker Follett
Hawthorne studies (human Eton Mayo //mayo’s

relations) principle is imp
Need hierarchy theory Abraham Maslow
Theory X, Theory Y Douglas McGregor
Model I, Model II values Chris Argyris
Quantitative Management science
Operations management
Management info system
Modern //imp Systems theory
} Contingency theory
Theory Z William Ouchii
Notes_07 (28.11.23)
Notes_08 (04.12.23)
Administrative theory by Henry Fayol
1. Also called the process or functional theory of management aims at

analysing the process, identifying principles underlying in it and
building a theory of management for them

2. Fayol’s theory of management included to identify and classify
business activities into six groups
a. technical
b. commercial
c. financial
d. security
e. accounting
3. To identify management as a separate set of functions:
a. Forecasting and planning
b. Organising
c. Commanding
d. Coordinating
e. Controlling
4. Fayol outlined 14 principles of management
a. Division of work
b. Authority and responsibility
c. Unity of command
d. Unity of direction
e. Discipline
f. Subordination of individual interest over general interest
g. Remuneration
h. Centralisation
i. Scalar chain
j. Order (refers to both material and social organisation)
k. Equity
l. Stability of tenure of personnel

m. Initiative
n. Spirit De Corps
Similarities b/w taylor and fayol
1. Both realised the universality of the principles of management.
2. Both aimed at iproving
3. Both
4. Both applied scientific methods to solve problems.
5. Both of them developed their ideas through practical experience.
6. Both emphasised mental revolution.
7. Both wanted to improve management practices.
Basis Taylor Fayol
Increasing productivity of Developing of general

Purpose
workers theory of administration
Level of management
Operating level Top level
emphasis
Analysed scientific Explained the functions

Contribution management on the basis and 14 principles of
of scientific techniques management
Analyses the way of doing Improved managerial

Evaluation is the purpose
work technically activities technically
Began fromt he operating

Beginning Began from the top
level of moving upward
Scientific management General theory of

Name of the theory
theory administration
Rigidity Relatively rigid Flexible
Ability of managers to
Mental revolution of
Importance perform functions
management and workers
smoothly and effectively.
Bureaucratic management theory by Max Webber

1. Bureaucratic managment emphasises the need for organisations to
function on a rational basis.
2. Webber (1864-1920), a contemporary of Fayol was a major contributor

to this school of thought. “bureaucracy” is derived from the german
word “buro” meaning office and it referred to organisations that
operated on a rational basis.
3. Bureaucracy according to Webber is a highly structured, formalised,

and impersonal organisation.
4. It is the most efficient form of organisation because it aims at high

degree of efficiency, objectivity, and rationality.
Major characteristics of Webber’s ideal bureaucracy
1. Work specialisation and division of labour
a. The duties and responsibilities of old employees are clearly

defined. Jobs are divided into tasks and subtasks. Each
employee is given a task to perform repeatedly so that he
acquires expertise in that particular task.
2. Abstract rules and regulations
a. The rules and regulations are well defined and they help to
instill discipline. This ensures that work is coordinated and the
goals of the organisation are achieveed
3. Impersonality of managers
a. Managers take rational decisions and make judgements based

purely on facts. They are immune to any feelings and thus
remain unbiased and unattached to their subordinates.
4. Hierarchy of organisational structure
a. The activities of employees, at each level, is monitored by

employees of higher levels. Subordinates do not take their own
decisions and always look upto their superiors for approval of
their ideas and opinions.
5. Formal selection

a. Managers are career oriented and not owners of the unit they
manage. Employees are also selected for jobs based on
technical qualifications.
Criticisms
Webber’s attempt of bureaucracy is not popular today as it was
when it was first proposed. The principal characteristics: strict
divisions of labours, adherence to formal rules and regulations, and
impersonal application of rules and controls, destroys individual
creativity, and the flexibility to respond to changes in the global
environment.
Even in flexible organisations of creative professionals-
bureaucratic mechanisms are still necessary to ensure resources
are used effectively and efficiently
Notes_09 (07.12.23)
The experiment was conducted in 4 phases
1. Illumination experiment
2. Relay assembly test room experiments
3. Interview phase
4. Bank writing observation room experiment
Contributions of Hawthorne Experiments
1. These experiments laid the foundation for the human system. These
interact with each other by getting influenced or influencing others.
2. There are two types of systems- open and closed
3. Taylor considered people and organisations as a close system unlike

reality
4. It is an open system interacts wit an environment. It is subject to

changes from within and outside to meet the needs of the organisation
5. According to this theory the four major components are inputs,

transformation process, output, feedback

Notes_10 (08.12.23)
Contingency approach to MNM
1. Managerial techniques that are effective in one situation may not be

effective in another
2. According to this theory, there is no one best way of managing a

situation. The effective management principles and practices vary with
the situation in which the organisation operates
3. It is a systematic attempt to determine package of management

texhniques, approaches, and practices that are appropriate in a
specific situation.
4. Managers should have the flexibility and freedom for derving a course
of action that is effective and efficient for the organisation
Managerial functions and roles
1. In order to understand the roles, in the late 1960, Henry Mintzburg

devised a new approach- by observing what managers can do. The

study involved 5 chief executives who work pattern, activities, and
time duration was observed whit a method called Structured
Observation, Mintzburg isolated 10 roles which were believed to be
most common to all managers
2. A manager required to interact with many people, both within and

outside the organisation and hence needed to perform interpersonal
roles
3. A manager also acts as a channel of information within the

organisation and thus carries out information roles
4. The third category deals with the most important role- in this role,
managers perform th emost crucial tasks, ie- they take decisions
which may affect the organisation’s wellbeing. Thus the third category
include decisional roles
Contribution of behavioural thinkers
1. Mary Parker Follet: Emphasised group influence and advocated the

concept of power sharing and integration
2. Abraham Maslow: Advocated that humans are essentially motivated by

a hierarchy of needs
3. Douglas McGregor: Differentiated employees and managers into

Theory X and Theory Y personalities
4. Chris Argyris: Classified organisations based on employees set of

values
Modern school of MNM thought
1. The modern approach to management [] the latest developments in

the field of management that took place after 1950
2. The three main streams are:
a. System approach
b. Contingency approach
c. Operations research approach

3. A system is a set of interacting subsystem components that constitute
a united qhole. Organisations ae composed of elements that are
dependent on one another
4. These elements are viewed as subsystems of a larger relations

movement. The studies showed that
a. the group is the key factor in job performance
b. perceived meaning and importance of [] work determine output or

productivity
c. workplace culture sets its own production standards.
Criticisms
1. The procedures, analysis of findings, and the conclusions reached

were all questionable.
2. The relationship made between the satisfaction and happiness of

workers and their productivity was too simplistic.
3. The studies failed to focus attention on the attitudes of employees

at the workplace
Behavioural Science
1. It is defined as systematic and scientific analysis of human behaviour

with a view to determine the causes of working behaviour of an
individual.
2. This approach is also known as the organisational behaviour approach
Performs ceremonial and

symbolic duties such as
Interpersonal role Figure head
greeting visitors, signing
legal documents, etc.
Direct and motivate

subordinates, training,
Leader counselling,
communicating with
subordinates.

Maintain information links
Liason both inside and outside
the organisation
Seek and receive

information, scan
Informational role Monitor periodicals and reports
and maintain personal
contacts
Transmit information
Spokesperson outsides through speech
reports etc
Forward information to
Dissemenator other organisation
members (memo, calls)
Initiate improvement
projects, identify new
Decisional role Entrepreneur ideasm delegatem ideas,
and responsibilities to
others
Take corrective action

during disputes or crisis,
Disturbance handler resolve conflicts among
subordinates, adapt to
environment crisis.
Decides who gets the

resources, scheduling,
Resource allocation
budgeting, setting
priorities
Represents the
department during
negotiation of union
Negotiator contracts, sales,
purchases, budgets
represents departmental
interests.
Notes_11 (14.12.23)

Classical conditioning
Since these theories emphasise the connection between stimulus and
response they are called connectionist theories.
The (S-R) connection deals with classical or respondent conditioning and

(R-S) deals with instrumental or operant conditioning
The theory of classical conditioning grew out of the famous experiment
conducted on dogs by Russian psychologist, Ivan Pavlov.
Pavlov used a procedure to measure the exact amount of saliva secreted
by the dog when he gave the dog a piece of meat it would start salivating.
In this case, the piece of meat was unconditioned stimulus and the
salivation was unconditioned response.
Next he just rang a bell, which naturally did not cause the dog to salivate.
In subsequent experiments he gave the dog a piece of meat when the bell
was rung. After the process was repeated several times, the dog began to
associate the ringing of the bell with the meat.
In subsequent experiments, Pavlov found that the dog would start

salivating at the mere ringing of the bell, even when it was not given any
meat. Thus the dog developed a conditioned response (salivation) to a
conditioned stimulus (ringing of the bell) which was previously a neutral
stimulus (N-S)
Classical conditioning, as illustrated above, can be defined as a process in

which a formally neutral stimulus, when paired with an unconditional
stimulus becomes a conditioned stimulus that shows a conditioned
response.
Classical conditioning essentially involves learning a conditioned response

by associating a conditioned stimulus with an unconditioned one

Operant conditioning
1. Operant conditioning or reinforcement theory has been associated

with the work of B.F. Skinner. Skinner designed an apparatus
called operant chamber or Skinner box.
2. The Skinner box has a lever, which on pressing drops of pellet of

food. a hungry rat was placed in the Skinner box, soon, it started
exploring and sniffing around looking for food.
3. It eventually pressed the lever by accident and received a pellet of

food. The rat soon started to associate the pressing of lever with
the reward of food. This form of learning, based on trial and error,
was called operant conditioning.
4. According to operant conditioning, consequences determine the

behaviour that results in learning.
5. People learn to behave in a particular manner in order to obtain

something they want or to avoid something they do not want.
6. Operant conditioning focuses on voluntary or learned behaviour as

opposed to unconditioned or reflexive behaviour in classical
conditioning.
7. According to the reinforcement theory, behaviour is repeated

depending on the reinforcement or lack of reinforcement brought
about by as a consequence of a particular behaviour.
8. Behaviour is strengthened and is likely to be repeated if it is

reinforced.
Classical conditioning:
Stimulus (S) Response (R)
Watching a famous tennis player win

Jumping with joy
a tournament
petting a cat happy no depression
Operant conditioning
browsing net- obtaining desired info

Reinforcement
1. Reinforcement is defined as anything that tends to increase the

intensity of a response and also induces the person to repeat the
behaviour which was followed by reinforcement.
2. Two terms associated with reinforcement are positive and negative

reinforcement. There is a difference between positive and negative
reinforcement and punishment. Reinforcement whether positive or
negative increases the intensity of any response and makes it more
likely to be repeated. However, positive and negative reinforcers
affect behaviour in different ways.
3. Positive reinforcement strengthens and increases the likelihood of

a particular behaviour because it provides a desirable
consequence.
4. Negative reinforcement also strengthens and increases the

probability of a particular behaviour being repeated, but by
withdrawing an undesirable consequence.
Notes_13 (18.12.23)
OB (Perception)
Introduction
1. People working in an organisation could differ in many ways. They

could differ in their physical characteristics. They could also differ
in their background chaacteristics like level of education and
training but the most important difference would be in their
perception.
2. An employee on duty in his office might be perceived by his boss

as sleeping during office hours or he is thinking deeply. Depending
on what the boss concludes, disciplinary action will be initiated
against him.
3. To a person what he perceives the reality, irrespective of the

objective truth. His behaviour is determined by his perception and

thus the reason people react differently over similar situations is
the undesired cognitive process of perception that shapes the way
they think about a situation. Perception forms an important part of
the study of OB.
4. There are several factors that influence perception. A person’s

behaviour is dependent on the factors leading to the situation.
These factors are called attributes.
Significance of perception
1. It may be defined as the process by which an individual

selects, organises, and interprets stimuli into a eaningful and
coherent picture of the environment in which he lives.
2. It is a very complex cognitive process and a social information

process- that yields a unique picture of the world, a picture
that may be quite different from reality.
3. The perpceptual process differs from one individual to another,

depending ont he needsm values, and expectations of the
individual.
4. Perception is thus an essential factor in determining individual

behaviour both inside and outside an organisation
5. The perception is looked upon as a unique interpretation of the

situation which goes through the process of-
a. picking up some external stimuli, such as some event, or

perhaps some personal interaction
b. Screening, when we only acknowledge the stimuli that we

choose to acknowledge.
c. Some interpretations and categorization of these stimuli,

possibly based on previous experiences or your
upbringing.y
Notes_14 (19.12.23)
Factors influencing perception

The perception of an indicidual is influenced by several factors. These
factors helo shape perception but can sometimes mislead individuals by
distorting perception
💡 Characteristics of the perceiver: attitudes, motives, interestsm

ecperience, expectations
Characteristics of the target: novelty, motives, sound, size,
background, proximity
Characteristics of the situation: time, work environment, social
environment
Perceptual process

1. The first subprocess of the several subprocesses in perception is the
stimulus or situation, it refers to an individual’s confrontation with an
external or internal stimuli, an individual may experience an immediate
stimulus or they may experience or the confrontation ma take place with
the physical and socio-cultural environment
2. The second subprocess, registration, involves an individual taking note of

the stimulus received from the environment or recording it in his mind.

Physiological mechanisms play an active role in registration.
3. The next subprocess is the most important cognitive aspect of perception
4. Interpretation is affected by the psychological processes of an individual.

The aspects of motivation and personality play a large role inan individuals
interpretation of a situation
5. Another important subprocess is the feedback
6. The subprocess of registration interpretation and feedback occur within a

person in response to a stimulus result in a certain behaviour on the part
of the individual and finally leads to a certain consequence.
7. The behavior maybe covert/overt or public (concealed or secret)
8. The sequence of registration, interpretation, feedback, resulting behaviour,

and the consequence can be explained with the help of an example:
9. Suppose the general manager instructs the production manager to make

products error free or warns that a maximum of only 4% error would be
tolerated, however if the company gets several complaints from customers
about the defects in its products, the general manager informs the product
manager abou the feedback received [feedback]. the production manager
immediately calls an emergency meeting and holds them responsible for
not ensuring the quality of the products [behaviour] this results in a drastic
reduction of staff salary belonging to the production department.
[consequence]
10. The situation and the behaviour are both visible to others but the three
subprocesses of perception ie registration interpretation and feedback are
internal cognitive processes that cannot be observed
Notes_15 (22.12.23)
Social perception
1. Deals with how an individual perceives other individuals.
2. Social perception depends on certain characteristics of one perceiver

as well as the perceived characteristics of a perceiver are:

a. if he understands his own personlaity then he understands others
accurately.
b. personal characteristic of an individual offset the way he perceives

others.
c. an individual who has high self-esteem will perceive favourable

aspects in another.
3. Status of the individual and role played by the individual in the

organisation
4. The way a person is being perceived is greatly influenced by visible

traits.
Of all the factors, the primary factors that affect are related to
psychological processes such as attributions made by people,
stereotyping and the halo effect
Attribution
💡 Attribution: The way in which people explain the cause of

their own or others behaviours are referred to as attribution.
The process of attribution helps individuals to make sense of
one anothers behaviour and to draw conclusions about the
factors that influence behaviour
Types of attribution
The two types of attributios made by people are:
1. Dispositional attribution: a person’s behaviour is attributed to

the internal factors that characterised the person such as
personality traits, his motivation, and his ability.
2. Situational attribution: a person’s behaviour is attributed to

factors external to the person such as equipment they may be
handling or the social influence he may be subjected to

Theories
Attribution theories differ from other theories of motivation
because it identifies attributions made by people on the basis of
their motivation. It does not just explain individual motivation but
also explains the relationship between personal perception and
interpersonal behaviour.
The attribution theory given by Harold Keylly deals with the
cognitive processes of an individual which helps to interpret hus
behaviour as being cause be aspects pertaining to the relevant
environment
Locus of control
1. It refers to the cheif source of factors that creates a result or gives

rise to an outcome in the employee’s perception. The
understanding of the locus of control as perceived by various
employees help in the better understanding of their behaviour at
work. Thus locus of control is impatient in determining his/her
performance level and satisfaction level
Stereotyping
1. The term sterotype refers to the tendency of generalising the

characteristics of all the members of a group.
2. When a perceiver judges some person based on his perception

about the group to which the person belongs, it is known as
stereotyping. A person resorts to stereotyping to simplify the
process of managing innumerable complex stimuli that are
encountered on a continual basis.
3. Stereotyping may attribute favourable as unfavourable traits to the

person being perceived. In most cases a person is stereotyped
because the perceiver is familiar only with the overall category
group to which the person belongs.
4. Generally in organisations, stereotypes are based on gender, race,

ethnicity, etc.
Halo effect

1. At times people draw a general impression about a person based
on a single characteristic such as intelligence, social ability,
agressiveness, etc. In stereotyping perception is based on a
certain general category to which a person belongs, while in halo
effect perceptions are formed on the basis of a dominant trait.
2. The halo effects is commonly seen in performance appraisals

when one appraiser commits an error in evaluating the
performance of an appraisee on the basis of a single trait such as
appearance, punctuality, cooperativeness, etc.
3. A certain positive trait might outwrigh all other characteristics that

may be considered while evaluating performance or making a
decision
Motivation
1. Motivation refers to the forces within a person that effect his or her
direction, intensity, and persistence of voluntary behaviours.
The willingness to exert high levels of effort towards

organisational goals conditioned by the person, ability to
satisfy some individual need is known as motivation
-Stephen Robbin
Motivation process
Physiological/Psychological → Individual behaves in a certain
way/manner → Achieves a particular goal
[NEED] [DRIVE]
[INCENTIVE]
1. Needs: A physiological/psychological imbalance leads to the

creation of a need. The need for water o food when a person is
hungry or thirsty
2. Drive: Drive/Motive propels individuals to attain their goals or

satisfy their needs. Drives constitute the core element in

motivation. The need for food and water is transformed into the
drive of hunger and thirst, and the need to achieve manifests as
the achievement drive.
3. Incentive: Anything that can mitigate a need and decrease the

intensity of a drive is called an incentive. When a person obtains
an incentive, the strength of that drive is reduced and balance is
restored.
Classification of motives
1. According to psychologists some motives are learnt while others

that are not learned have a physiological basis. These motives
which are physiologically based are called primary motives. Eg:
hunger, thirst, sleep, etc.
2. Secondary motives are those which are learnt over time, they are
also called learned motives. Eg: power achievement etc. Motives
that cannot be classified into secondary motives/primary motives
are called general motives. eg: curiosity
Theories of work motivation

They are of two types
1. Content theory:
Maslow’s hierarchy of needs

1. Human motivation can be defined as the fulfillment of
various needs. These needs can encompass a range of
human desires, from basic, tangible needs of survival to

complex, emotional needs surrounding an individual’s
psychological well-being.
2. Abraham Maslow was a social psychologist who was

interested in a broad spectrum of human psychological
needs rather than on individual psychological problems. He
is best known for his hierarchy-of-needs theory. Depicted
in a pyramid (shown in Figure 1), the theory organizes the
different levels of human psychological and physical needs
in order of importance.
3. The needs in Maslow’s hierarchy include physiological

needs (food and clothing), safety needs (job security),
social needs (friendship), self-esteem, and self-
actualization. This hierarchy can be used by managers to
better understand employees’ needs and motivation and
address them in ways that lead to high productivity and job
satisfaction.
4. At the bottom of the pyramid are the physiological (or

basic) human needs that are required for survival: food,
shelter, water, sleep, etc. If these requirements are not met,
the body cannot continue to function. Faced with a lack of
food, love, and safety, most people would probably
consider food to be their most urgent need.
5. Once physical needs are satisfied, security (sometimes

referred to as individual safety) takes precedence. Security
and safety needs include personal security, financial
security, and health and well-being. These first two levels
are important to the physical survival of the person.
6. Once individuals have basic nutrition, shelter, and safety,

they seek to fulfill higher-level needs.
7. The third level of need is social, which includes love and

belonging; when individuals have taken care of themselves
physically, they can address their need to share and
connect with others.

8. Deficiencies at this level, on account of neglect, shunning,
ostracism, etc., can impact an individual’s ability to form
and maintain emotionally significant relationships. Humans
need to feel a sense of belonging and acceptance, whether
it comes from a large social group or a small network of
family and friends.
9. Other sources of social connection may be professional

organizations, clubs, religious groups, social media sites,
and so forth. Humans need to love and be loved (sexually
and non-sexually) by others. Without these
attachments, people can be vulnerable to psychological
difficulties such as loneliness, social anxiety, and
depression.
10. These conditions, when severe, can impair a person’s

ability to address basic physiological needs such as eating
and sleeping.
11. The fourth level is esteem, which represents the normal

human desire to be valued and validated by others,
through, for example, the recognition of success or status.
This level also includes self-esteem, which refers to the
regard and acceptance one has for oneself. Imbalances at
this level can result in low self-esteem or an inferiority
complex.
12. People suffering from low self-esteem may find that

external validation by others—through fame, glory,
accolades, etc.—only partially or temporarily fulfills their
needs at this level.
13. At the top of the pyramid is self-actualization. At this stage,

people feel that they have reached their full potential and
are doing everything they’re capable of. Self-actualization
is rarely a permanent feeling or state. Rather, it refers to the
ongoing need for personal growth and discovery that
people have throughout their lives.

14. Self-actualization may occur after reaching an important
goal or overcoming a particular challenge, and it may be
marked by a new sense of self-confidence or contentment.
Criticisms
1. Opinion divergence with regard to movement in need

hierarchy.
2. Varying dominant motivating force.
3. Lack of cause and effect relation.
4. Subjectivity with regard to satisfaction level
5. Difficult to generalize priority order.
Alderfer Erg theories

1. Clayton Paul Alderfer is an American psychologist who
developed Maslow’s hierarchy of needs into a theory of his
own. Alderfer’s ERG theory suggests that there are three

groups of core needs: existence (E), relatedness (R),
and growth (G)—hence the acronym ERG. These groups
align with Maslow’s levels of physiological needs, social
needs, and self-actualization needs, respectively.
2. Existence needs concern our basic material requirements

for living. These include what Maslow categorized as
physiological needs (such as air, food, water, and shelter)
and safety-related needs (such as health, secure
employment, and property).
3. Relatedness needs have to do with the importance of

maintaining interpersonal relationships. These needs are
based in social interactions with others and align with
Maslow’s levels of love/belonging-related needs (such as
friendship, family, and sexual intimacy) and esteem-related
needs (gaining the respect of others).
Finally, growth needs to describe our intrinsic desire for
personal development.
4. These needs align with the other portion of Maslow’s

esteem-related needs (self-esteem, self-confidence, and
achievement) and self-actualization needs (such as
morality, creativity, problem-solving, and discovery).
5. Alderfer proposed that when a certain category of needs

isn’t being met, people will redouble their efforts to fulfill
needs in a lower category. For example, if someone’s self-
esteem is suffering, he or she will invest more effort in the
relatedness category of needs.
Herzberg’s motivator-hygiene theory

1. American psychologist Frederick Herzberg is regarded as
one of the great original thinkers in management and
motivational theory. Herzberg set out to determine the
effect of attitude on motivation, by simply asking people to
describe the times when they felt really good, and really
bad, about their jobs. What he found was that people who
felt good about their jobs gave very different responses
from the people who felt bad.
2. The results from this inquiry form the basis of Herzberg’s

Motivation-Hygiene Theory (sometimes known as
Herzberg’s “Two Factor Theory”). Published in his famous
article, “One More Time: How do You Motivate
Employees,” the conclusions he drew were extraordinarily
influential, and still form the bedrock of good motivational
practice nearly half a century later. He’s especially
recognized for his two-factor theory, which hypothesized
that are two different sets of factors governing job
satisfaction and job dissatisfaction: “hygiene factors,” or
extrinsic motivators and “motivation factors,” or intrinsic
motivators.
3. Hygiene factors, or extrinsic motivators, tend to represent

more tangible, basic needs—i.e., the kinds of needs
included in the existence category of needs in the ERG
theory or in the lower levels of Maslow’s hierarchy of
needs. Extrinsic motivators include status, job security,
salary, and fringe benefits. It’s important for managers
to realize that not providing the appropriate and expected
extrinsic motivators will sow dissatisfaction and decrease
motivation among employees.
4. Motivation factors, or intrinsic motivators, tend to

represent less tangible, more emotional needs—i.e., the
kinds of needs identified in the “relatedness” and “growth”
categories of needs in the ERG theory and in the higher
levels of Maslow’s hierarchy of needs. Intrinsic motivators

include challenging work, recognition, relationships, and
growth potential. Managers need to recognize that while
these needs may fall outside the more traditional scope of
what a workplace ought to provide, they can be critical to
strong individual and team performance.
5. The factor that differentiates two-factor theory from the

others we’ve discussed is the role of
employee expectations. According to Herzberg, intrinsic
motivators and extrinsic motivators have an inverse
relationship. That is, intrinsic motivators tend to
increase motivation when they are present, while extrinsic
motivators tend to reduce motivation when they are absent.
This is due to employees’ expectations. Extrinsic
motivators (e.g., salary, benefits) are expected, so they
won’t increase motivation when they are in place, but they
will cause dissatisfaction when they are missing. Intrinsic
motivators (e.g., challenging work, growth potential), on the
other hand, can be a source of additional motivation when
they are available.
6. If management wants to increase employees’ job

satisfaction, they should be concerned with the nature of
the work itself—the opportunities it presents employees for
gaining status, assuming responsibility, and achieving self-
realization. If, on the other hand, management wishes to
reduce dissatisfaction, then it must focus on the job
environment—policies, procedures, supervision, and
working conditions. To ensure a satisfied and productive
workforce, managers must pay attention to both sets of job
factors.
Criticisms
⦁ Theory based on limited sample
⦁ Lack of clarity and proper distinction
⦁ Ignoring interpersonal relations
⦁ Ignoring heterogeneous expectations of employees

⦁ Ignoring satisfaction and performance relationships
⦁ Biased reporting
McClelland’s Acquired Needs Theory

1. Psychologist David McClelland’s acquired-needs
theory splits the needs of employees into three categories
rather than the two we discussed in Herzberg’s theory.
These three categories are achievement, affiliation,
and power.
2. Employees who are strongly achievement-motivated are

driven by the desire for mastery. They prefer working on
tasks of moderate difficulty in which outcomes are the
result of their effort rather than luck. They value receiving
feedback on their work.
3. Employees who are strongly affiliation-motivated are driven

by the desire to create and maintain social relationships.
They enjoy belonging to a group and want to feel loved and
accepted. They may not make effective managers because
they may worry too much about how others will feel about
them.
4. Employees who are strongly power-motivated are driven by

the desire to influence, teach, or encourage others. They
enjoy work and place a high value on discipline. However,
they may take a zero-sum approach to group work—for
one person to win, or succeed, another must lose, or fail.
5. If channeled appropriately, though, this approach can

positively support group goals and help others in the group
feel competent.
The acquired-needs theory doesn’t claim that people can
be neatly categorized into one of three types.
6. Rather, it asserts that all people are motivated by all of

these needs in varying degrees and proportions. An
individual’s balance of these needs forms a kind of profile
that can be useful in creating a tailored motivational
paradigm for her.
7. It is important to note that needs do not necessarily

correlate with competencies; it is possible for an employee

to be strongly affiliation-motivated, for example, but still be
successful in a situation in which her affiliation needs are
not met.
8. McClelland proposes that those in top management

positions generally have a high need for power and a low
need for affiliation. He also believes that although
individuals with a need for achievement can make good
managers, they are not generally suited to being in top
management positions.
McGregor’s Theory X and Theory Y
1. The idea that a manager’s attitude has an impact on

employee motivation was originally proposed by Douglas
McGregor, a management professor at the Massachusetts
Institute of Technology during the 1950s and 1960s. In his
1960 book, The Human Side of Enterprise, McGregor
proposed two theories by which managers perceive and
address employee motivation. He referred to these
opposing motivational methods as Theory X and Theory Y
management. Each assumes that the manager’s role is to
organize resources, including people, to best benefit the
company. However, beyond this commonality, the attitudes
and assumptions they embody are quite different.
Theory X
According to McGregor, Theory X management assumes
the following:
Work is inherently distasteful to most people, and they

will attempt to avoid work whenever possible.
Most people are not ambitious, have little desire for

responsibility, and prefer to be directed.
Most people have little aptitude for creativity in solving

organizational problems.

Motivation occurs only at the physiological and security
levels of Maslow’s hierarchy of needs.
Most people are self-centered. As a result, they must

be closely controlled and often coerced to achieve
organizational objectives.
Most people resist change.
Most people are gullible and unintelligent.
Essentially, Theory X assumes that the primary source of

employee motivation is monetary, with security as a strong
second. Under Theory X, one can take a hard or soft
approach to getting results.
The hard approach to motivation relies on coercion, implicit
threats, micromanagement, and tight controls— essentially
an environment of command and control. The soft
approach, however, is to be permissive and seek harmony
in the hopes that, in return, employees will cooperate when
asked. However, neither of these extremes is optimal. The
hard approach results in hostility, purposely low output,
and extreme union demands. The soft approach results in a
growing desire for greater reward in exchange for
diminished work output.
It might seem that the optimal approach to human resource
management would lie somewhere between these
extremes. However, McGregor asserts that neither
approach is appropriate, since the basic assumptions of
Theory X are incorrect.
Drawing on Maslow’s hierarchy of needs, McGregor argues

that a need, once satisfied, no longer motivates. The
company uses monetary rewards and benefits to satisfy
employees’ lower-level needs. Once those needs have
been satisfied, the motivation disappears. Theory
X management hinders the satisfaction of higher-level
needs because it doesn’t acknowledge that those needs

are relevant in the workplace. As a result, the only way that
employees can attempt to meet higher-level needs at work
is to seek more compensation, so, predictably, they focus
on monetary rewards. While money may not be the most
effective way to self-fulfillment, it may be the only way
available. People will use work to satisfy their lower needs
and seek to satisfy their higher needs during their leisure
time. However, employees can be most productive when
their work goals align with their higher-level needs.
McGregor makes the point that a command-and-control
environment is not effective because it relies on lower
needs for motivation, but in modern society those needs
are mostly satisfied and thus are no longer motivating. In
this situation, one would expect employees to dislike their
work, avoid responsibility, have no interest in organizational
goals, resist change, etc.—creating, in effect, a self-
fulfilling prophecy. To McGregor, a steady supply of
motivation seemed more likely to occur under Theory Y
management.
Theory Y
The higher-level needs of esteem and self-actualization are
ongoing needs that, for most people, are never completely
satisfied. As such, it is these higher-level needs through
which employees can best be motivated.
In strong contrast to Theory X, Theory Y
management makes the following assumptions:
Work can be as natural as play if the conditions are

favorable.
People will be self-directed and creative to meet their

work and organizational objectives if they are
committed to them.
People will be committed to their quality and

productivity objectives if rewards are in place that

address higher needs such as self-fulfillment.
The capacity for creativity spreads throughout

organizations.
Most people can handle responsibility because

creativity and ingenuity are common in the population.
Under these conditions, people will seek responsibility.
Under these assumptions, there is an opportunity to align

personal goals with organizational goals by using the
employee’s own need for fulfillment as the motivator.
McGregor stressed that Theory Y management does not
imply a soft approach.
McGregor recognized that some people may not have
reached the level of maturity assumed by Theory Y and
may initially need tighter controls that can be relaxed as the
employee develops.
If Theory Y holds true, an organization can apply the
following principles of scientific management to improve
employee motivation:
Decentralization and delegation: If firms decentralize

control and reduce the number of levels of
management, managers will have more subordinates
and consequently need to delegate some responsibility
and decision making to them.
Job enlargement: Broadening the scope of an

employee’s job adds variety and opportunities to satisfy
ego needs.
Participative management: Consulting employees in

the decision-making process taps their creative
capacity and provides them with some control over
their work environment.
Performance appraisals: Having the employee set

objectives and participate in the process of self-

evaluation increases engagement and dedication.
If properly implemented, such an environment can increase

and continually fuel motivation as employees work to
satisfy their higher-level personal needs through their jobs.
2. Process theory:
Adam’s equity theory
1. The theory propounded by J. Stacy Adams states that the

degree of equity and inequity perceived by an employee
with reference to his work situation plays a major role in
work performance and satisfaction.
2. Job inputs and outputs /outcomes are measured,

employees generally compare outcome – input ratio with
that of others. If they perceive the ratio of their outcomes
and inputs to be equal to that of their peers and others, a
state of equity exists.
3. However, when the employee perceives his outcome –input

ratio as being unequal to others, a state of equity tension or
inequity exists. This state of negative tension motivates a
person to take the necessary corrective measures.
Vroom’s expectancy theory

1. Vrooms’s expectancy theory stipulates that behavior is a
product of choices that are available for to be prioritized.

The idea is to derive satisfaction and minimize
dissatisfaction in employees. Individual factors such as
personality and skills determine performance (Wagner and
Hollenburg, 2007).
2. This theory also explains that performance, motivation, and

effort are within an individual’s motivation and variables
such as valence, instrumentality, and expectancy verifies
this. The higher the effort in work relates to the higher the
performance.
3. The theory is based on three variables Valence,

Instrumentality and Expectancy and is therefore commonly
termed as VIE theory.
4. VALENCE (V) denotes the strength of an individual’s

preference for a particular outcome. Other terms for
valence are value, incentive and attitude.
5. The valence is said to be zero when the person is not

interested in the outcome. INSTRUMENTALITY (I) refers to
the degree to which a first-level outcome would help in
attaining the desired second level outcome.
6. EXPECTANCY (E) is the probability (ranging from 0 to 1)

that performing a specific action would produce a
particular first-level outcome or effort. Vroom’s expectancy
Theory focuses on the relationship between an employee’s
efforts, performance rewards and personal goal.
7. The 3 types of relationships that have been identified in

Vroom’s Expectancy Theory are effort-performance
relationship, performance- reward relationship and reward
–goals relationship.
Porter Lawler Motivation Model

1. This model was developed by Lyman W. Porter and Edward
E. Lawler III as an extension of Vroom’s Expectancy theory.
They tried to explore relationship between motivation,
satisfaction and performance and pointed out that efforts

put in by an employee did not directly result in performance
.The model is a comprehensive explanation of work
motivation.
It is dependent on three factors:
1. An employee should have the desire to perform.
2. Motivation alone cannot ensure successful

performance of a task.
3. The employee should have a clear perception of his

role in the organization and an accurate knowledge of
job requirements.
The important variables in the model are :
1. Effort
2. Performance
3. Rewards
4. Satisfaction.
1. Goal setting theory
2. Reinforcement theory
Notes_16 (04.01.24)
Leadership
1. A leader may be defined as a person who establishes vision, sets

goals, motivates people and entertains their commitment to achieve
goals and realise their visions.
2. Ability to influence a group towards achievement of goals
3. Koontz and O’Donnell stated “Leadership is the ability of a manager to

influence a group or induce subordinates to work with confidence and
zeal”

Basis Transformational Transactional
Introduced by James V. Downton in 1978 Max Webber in 1947
Emphasises on how Emphasise on basis

leaders can create a management processes
Concept postive and a valuable like organising,
change in their controlling, and short
subordinates term planning.
Leaders- employee
Leaders- employee
punishment and rewards
Meaning enthusiasm and charisma
as motivators for its
to inspire their followers
followers
Leaders ability and

Motivating employees
personality traits to make
through a systom of
changes through
rewards and punishment.
Based on examples. They can
These leaders are action
create trust, admiration,
oriented and self
and respect from their
directed.
subordinates
Focuses on values, ideas, Focuses on maintaining

Focus needs, and morals of the favourable relationship
followers with the followers
Concern is about status

Area of concern Change oriented
quo
Nature Proactive Responsive
Changing one existing DDeveloping the existing

Works for
organisational culture organisational culutre
Best suited for Turbulent environment Settled environment
Style Charismatic Bureaucratic
Stimulates followers by Motivates and inspires

Motivational tool making the group interest followers by giving more
a priority priority to self interest
Contingent rewards,
Inspirational motivation,
active and positive
intellectual stimulation,
Dimensions management, by
idealised influence, and
exception and Laissez-
individual consideration
Faire style

Characteristics of a leader
1. Influencing power
2. Reciprocal relationship
3. Co-existence with everyone in team
4. Achieving common goals
5. Situation bound, ie, different styles in different situations
Leadership styles
https://prod-files-secure.s3.us-west-2.amazonaws.com/01af4981-d
89a-474d-81ad-50f55711277a/89a9a85e-1ae8-440f-852d-8894611
4bcee/Leadership_Styles.pdf
Leadership styles: Transformational vs. Transactional
Transformational leadership
1. Transformational leadership is defined as a leadership approach

that causes change in individuals and social systems. In its ideal
form, it creates valuable and positive change in the followers with
the end goal of developing followers into leaders. Enacted in its
authentic form, transformational leadership enhances the
motivation, morale and performance of followers through a variety
of mechanisms.
2. These include connecting the follower's sense of identity and self

to the mission and the collective identity of the organization; being
a role model for followers that inspires them; challenging followers
to take greater ownership for their work, and understanding the
strengths and weaknesses of followers, so the leader can align
followers with tasks that optimize their performance....[1]
3. Transformational leadership is an approach to leadership that

moves followers to transcend self-interest for the good of the
organisation. Transformational leadership consists of six

behaviours: articulating a vision; setting a positive example;
communicating high performance expectations; showing
sensitivity to individual followers’ needs; encouraging a team
attitude; and providing intellectual stimulation.
4. Research shows that groups led by transformational leaders boast

higher levels of performance than groups led by other types of
leaders. Transformational leaders' high expectations give their
subordinates the self-confidence to persist in the face of setbacks,
often resulting in exceptional performance.[2]
5. A transformational leadership takes into account individual traits,

organizational culture and characteristics. It also models
leadership behaviors. It causes positive impact on followers and
groups and increases outcomes. See the chart below:

6. Transformational leaders are sometimes call quiet leaders. They
are the ones that lead by example. Their style tends to use rapport,
inspiration, or empathy to engage followers. They are known to
possess courage, confidence, and the willingness to make
sacrifices for the greater good. They possess a single-minded
need to streamline or change things that no longer work. The
transformational leader motivates workers and understands how to
form them into integral units that work well with
others. [3] Transformational leaders create a culture of active
thinking through intellectual stimulation, and this culture
encourages followers to become more involved in the organization
(Tims et al., 2011).
Characteristics of a transformational leader

Five major personality traits have been identified as factors
contributing to the likelihood of an individual displaying the
characteristics of a transformational leader. Different emphasis on
different elements of these traits point to inclination in personality to
inspirational leadership, transactional leadership, and transformational
leadership. These five traits are as follows.
Extraversion: The two main characteristics of extraverts are

affiliation and agency, which relate to the social and leadership
aspects of their personality, respectively. Extraversion is generally
seen as an inspirational trait usually exhibited in transformational
leadership.
Neuroticism: Neuroticism generally gives an individual an anxiety

related to productivity which, in a group setting can be debilitating
to a degree where they are unlikely to position themselves in a role
of transformational leadership due to lower self-esteem and a
tendency to shirk from leadership responsibilities.
Openness to Experience: Creative expression and emotional

responsiveness have been linked to a general tendency of
openness to experience. This trait is also seen as a component of
transformational leadership as it relates to the ability to give big-
picture visionary leadership for an organization.

Agreeableness: Although not a trait which specifically points to
transformational leadership, leaders in general possess an
agreeable nature stemming from a natural concern for others and
high levels of individual consideration. Charisma and idealized
influence is a classic ability of individuals who possess
agreeability.
Conscientiousness: Strong sense of direction and the ability to put

large amounts of productive work into tasks is the by-product of
conscientious leaders. This trait is more linked to a transactional
form of leadership given the managementbased abilities of such
individuals and the detail oriented nature of their personality.
Whilst the Transformational Leader seeks overtly to transform the

organization, there is also a tacit promise to followers that they also will
be transformed in some way, perhaps to be more like this amazing
leader. In some respects, then, the followers are the product of the
transformation.
Transformational Leaders are often charismatic, but are not as
narcissistic as pure Charismatic Leaders, who succeed through a
belief in themselves rather than a belief in others.
One of the traps of Transformational Leadership is that passion and

confidence can easily be mistaken for truth and reality. Whilst it is true
that great things have been achieved through enthusiastic leadership,
it is also true that many passionate people have led the charge right
over the cliff and into a bottomless chasm.
Just because someone believes they are right, it does not mean they
are right. Paradoxically, the energy that gets people going can also
cause them to give up.
Transformational Leaders often have large amounts of enthusiasm
which, if relentlessly applied, can wear out their followers.
Transformational Leaders also tend to see the big picture, but not the
details, where the devil often lurks. If they do not have people to take
care of this level of information, then they are usually doomed to fail.
Finally, Transformational Leaders, by definition, seek to transform.

When the organization does not need transforming and people are
happy as they are, then such a leader will be frustrated. Like wartime
leaders, however, given the right situation they come into their own
and can be personally responsible for saving entire companies.
Transactional leadership
1. Transactional leadership or transactional management is the part

of one style of leadership that focuses
on supervision, organization, and performance; it is an integral part
of the Full Range Leadership Model. Transactional leadership is
a style of leadership in which leaders promote compliance
by followers through both rewards and punishments. Through a
rewards and punishments system, transactional leaders are able to
keep followers motivated for the short-term.
Unlike transformational leaders, those using the transactional
approach are not necessarily looking to change the future.
Transactional leadership "occurs when one person takes the
initiative in making contact with others for the purpose of an
exchange of valued things" (Burns, 1978).
2. This type of leadership is effective in crisis and emergency

situations,[1] as well as for projects that need to be carried out in a
specific way.
3. Transactional leadership is generally attributed to two factors. The

leadership of the first conditional reward is viewed as both an
efficient and constructive relationship between the leader and the
followers. These followers get bonuses, merits, or recognition with
the organization that they are with when they meet certain goals
depending on what the company is (Bycio, P., Hackett, R.D., &
Allen, J.S, 1995).
4. The rewards, from this contingent reward, is solely based on an

agreement between the leader and follower. The second factor of
transactional leaders is management by exception. This can be
active or passive. Active leaders are always watching to evaluate
performances of employees. Passive management only assess

after the task has been done and will only let you know about
problems after they occurred (Howell & Aviolio, 1993).
Characteristics of a transactional leader
1. Transactional leaders use reward and punishments to gain

compliance from their followers. In any case, transactional leaders
are not concerned with the well-being of the workers as compared
in transformational leadership. They are extrinsic motivators that
bring minimal compliance from followers. They accept goals,
structure, and the culture of the existing organization.
Transactional leaders tend to be directive and action-oriented.
Transformational leaders want followers to achieve intrinsic
motivation and job fulfillment..
2. Transactional leaders are willing to work within existing systems

and negotiate to attain goals of the organization. They tend to think
inside the box when solving problems. On the other hand,
transformational leaders are pragmatic and think outside the box
when solving problems
3. Transactional leadership is primarily passive. On the other hand,

transformational leadership is interactive and inspiring. The
behaviors most associated with this type of leadership are
establishing the criteria for rewarding followers and maintaining the
status quo.[10]
4. The overall effectiveness of transactional management is that it

can be very practical and directive. Through transactional
management, an explicit measure of success can be discovered
through the consistent monitoring of managers. The model is also
viewed as very straightforward and understandable due to the
simple reward and punishments system.
5. Within transactional leadership, there are two factors, contingent

reward and management-by-exception. Contingent reward
provides rewards for effort and recognizes good performance.
Management-by-exception maintains the status quo, intervenes

when subordinates do not meet acceptable performance levels,
and initiates corrective action to improve performance.[10]
6. The benefits of transactional leadership depend greatly on the

circumstances – its benefits will not be realized in all situations.
Where it can be useful, there are distinct advantages, but also
some drawbacks. Some of the advantages include it rewards
individuals who are self-motivated and follow instructions, its
benefits tend to be realized quickly when quickly achieving short-
term goals, workers have clearly defined rewards and penalties, it
encourages productivity, it provides a clear and easy to
understand structure, it is great for work environments where
structure and systems need to be reproduced (e.g., high volume
manufacturing), and it serves to align everyone in large
organizations.
7. On the other hand, there are some down sides to transactional

leadership: it does not work well in flexible work environments, it
only rewards workers with perks or money, no other real
motivators are used, it does not reward individuals who take
personal initiative, it can be viewed as limiting and not personal,
creativity by employees is limited or non-existent, the structures
can be very rigid, and there is no room for flexibility with goals and
objectives.
Reference PDFs
MOTIVATION THEORIES.docx
Leadership styles (Transformational ,Transactional).docx

MANAGERIAL GRID.docx
POM- Planning.docx
POM- Steps of Planning.pdf
Planning and Control.pdf
Budget and Budgetary control.pdf
Delegation of Authority.pdf
Decentralization.docx
Coordination.docx
Span of Management(1).pdf

Communication.docx
Formal vs Informal organizations.pdf
Functional areas of Management .docx

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Principles of Management and

Introduction- Organisational behaviour and its key elements

What is organisational behaviour?

How have some behavioural scientists defined organisational

"OB is directly concerned with the understanding,

"OB is a field of study that investigates the impact that

Principles of Management and Organisational Behaviour 1

How are people a key element of OB?

People consist individuals and groups.

There is a difference in people's traits, intelligence, personality,

Individual differences need to be treated by the manager

OB studies an individual as a whole and the behaviour he displays

There is a cause behind every human behaviour, thus, a manager

How is structure a key element of OB?

Organisations are social systems.

There are two types of social systems--informal and formal.

The formal relationship between people in an organisation is

How is technology a key element of OB?

Technology provides the resources with which people work.

It also affects the tasks that people perform.

What is environment and how is it a key element of OB?

All organisations operate within an internal and external

Principles of Management and Organisational Behaviour 2

All of them mutually influence one another in a complex way.

Thus, organisations are influenced by the external environment.

Internal environment includes attitudes of people and working

Hence, environment is one of the key elements of OB.

Which, in your opinion, is the most important element of organisational

I think people are the most important element of organisational

Notes_02 (24.08.23) //introduction contd.

Nature of Organisational Behaviour [6]

1. A separate field of study and not a discipline only

2. An interdisciplinary approach that integrates relevant knowledge from

4. It is humanistic in nature and has an optimistic approach

6. It is a total systems approach

Scope of Organisational Behaviour

Principles of Management and Organisational Behaviour 3

Personality Group dynamics Organisational culture

Perception Group conflicts Organisational change

Attitude Communication Organisational development

Job Satisfaction Power and politics

The Need to Study Organisational Behaviour [6]

The study of OB benefits us in many ways—

1. It helps us to understand ourselves and others in a better way. This

2. The knowledge of OB helps the managers to know individual

3. It helps managers apply motivational techniques in accordance to the

4. One of the basic characteristics of OB is that it is humane in nature. It

5. The main reason for studying OB is to learn how to predict human

6. The effective utilisation of human resources in the organisation

Trends and future prospects in OB

Principles of Management and Organisational Behaviour 4

1. Reduction in number of middle-management personnel. The

2. Increasing use of computers and information technology will be seen.

3. Entry of minorities and women in the workforce will definitely increase

4. Co-operation between management and unions- though it is not easy.

5. Innovative work approaches for special needs of employees, these

Personality as specific characteristics of individuals may be open or

→ Some are punctual and hardworking whereas others lack punctuality