SUBJECT CODE

: 3141909

As per New Syllabus of

Gujarat Technological University Semester - IV (MECH)

Organizational Behavior Uma Joshi B.E. (Electronics), MBA (Marketing) Assistant Professor, L. J. Institute of Engineering and Technology, Ahmedabad (Gujarat)

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An Up-Thrust for Knowledge

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Organizational Behavior Subject Code : 3141909

Semester - IV (Mechanical Engineering)

First Edition : January 2020

ã Copyright with Author All publishing rights (printed and ebook version) reserved with Technical Publications. No part of this book should be reproduced in any form, Electronic, Mechanical, Photocopy or any information storage and retrieval system without prior permission in writing, from Technical Publications, Pune.

Published by : ®

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TECHNICAL

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An Up-Thrust for Knowledge

Amit Residency, Office No.1, 412, Shaniwar Peth, Pune - 411030, M.S. INDIA P h . : + 9 1 - 0 2 0 - 2 4 4 9 5 4 9 6 / 9 7 , Te l e f a x : + 9 1 - 0 2 0 - 2 4 4 9 5 4 9 7 Email : [email protected] Website : www.technicalpublications.org

ISBN 978-93-89750-17-1

9 789389 750171 9789389750171 [1]

Course 18 (ii)

Preface The importance of Organizational Behavior is well known in various engineering fields. Overwhelming response to my books on various subjects inspired me to write this book. The book is structured to cover the key aspects of the subject Organizational Behavior. Morevover, my own journey of 19 years working in different corporates and an academic institute, has become instrumental to provide an insight on this subject. The book uses plain, lucid language to explain fundamentals of this subject. The book provides logical method of explaining various complicated concepts and stepwise methods to explain the important topics. Each chapter is well supported with necessary illustrations, practical examples and solved problems. All the chapters in the book are arranged in a proper sequence that permits each topic to build upon earlier studies. Each chapter is well supported with necessary ilustrations and practical examples. All care has been taken to make students comfortable in understanding the basic concepts of the subject. The book not only covers the entire scope of the subject but explains the philosophy of the subject. This makes the understanding of this subject more clear and makes it more interesting. The book will be very useful not only to the students but also to the subject teachers. The students have to omit nothing and possibly have to cover nothing more. I wish to express my profound thanks to all those who helped in making this book a reality. Much needed moral support and encouragement is provided on numerous occasions by my whole family. I wish to thank the Publisher and the entire team of Technical Publications who have taken immense pain to get this book in time with quality printing. Any suggestion for the improvement of the book will be acknowledged and well appreciated. Author Uma Joshi

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Dedicated to my father Mr. Rajabhai Makwana who being a highly educated and a learned man has always stressed the importance of education, my mother Late Smt. Jasuben Makwana, who had always given first priority to the education of her children and my mentor Daisaku Ikeda, a world peace builder and educator from whom I have learnt to create value in whatever I do.

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Syllabus Organizational Behavior - 3141909 Credits C 3

Examination Marks Theory Marks

Practical Marks

ESE(E)

PA(M)

ESE(V)

PA(I)

70

30

0

0

Total Marks 100

1. Focus and Purpose : Definition, need and importance of organizational behavior, Nature and scope, Frame work, OB model. (Chapter-1)

2. Individual Behaviour : Attitudes : Characteristics, Components, Formation, Measurement, barriers to change attitude. Perception: Meaning and concept of perception, factors influencing perception, Motivation : Importance, Types, Theories of Motivation, Effects on work behaviour. Personality and value: Types, Factors influencing personality, Theories, Learning, Types of learners, The learning process, Learning theories, Organizational behaviour modification. Misbehaviour : Types, Management Intervention. Emotions: Emotional Labour, Emotional Intelligence, Theories. Impression management, Individual decision making techniques. (Chapter-2)

3. Group Behaviour : Organization structure, Formation, Groups in organizations, Influence, Group dynamics, Group decision making techniques, Team building, Communication, Control, Johari Window. (Chapter-3)

4. Leadership and Power : Meaning, Importance, Leadership styles, Behavioural Theories, Fiedler model, LMX theory and Path Goal theory, Leaders vs Managers, Sources of power, Power centers, Power and Politics. (Chapter-4)

5. Dynamics of Organizational Behaviour : Organizational culture and climate, Factors affecting organizational climate, Importance, Job satisfaction, Determinants, Measurements, Influence on behaviour, Stress, Work Stressors, Prevention and Management of stress, Balancing work and Life, Kurt Lewin’s–three step model, methods for implementing organizational change. (Chapter-5) (v)

Table of Contents Chapter - 1

Focus & Purpose of Organizational Behavior (1 - 1) to (1 - 14)

1.1 Introduction.......................................................................................................1 - 2 1.2 Need and Importance of Organizational Behaviour ..........................................1 - 3 1.2.1 How Organizational Behaviour Studies Help Leaders and Employees in an Organization ?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 3 1.2.2 The Importance of Organizational Behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 4

1.3 Nature and Scope of OB ....................................................................................1 - 4 1.3.1 Contributing Fields to Organizational Behaviour . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 6

1.4 Theoretical Framework of OB............................................................................1 - 9 1.4.1 Cognitive Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 10 1.4.2 Behavioristic Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 10 1.4.3 Social Cognitive Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 11

1.5 OB Model.........................................................................................................1 - 12 Questions...............................................................................................................1 - 14 Chapter - 2

Individual Behaviour

(2 - 1) to (2 - 60)

2.1 Attitude-Definition ............................................................................................2 - 3 2.1.1 Characteristics of 'Attitude'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 4 2.1.2 Components of 'Attitude' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 4 2.1.3 Formation of Attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 6 2.1.4 Measurement of Attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 8 2.1.5 Changing Attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 9 2.1.6 Functions of Attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 10 2.1.7 Types of Attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 11

2.2 Perception .......................................................................................................2 - 13 2.2.1 Factors Influencing Perception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 13 2.2.2 Perception Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 15 2.2.3 Errors in Perception. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 16 (vi)

2.3 Motivation .......................................................................................................2 - 19 2.3.1 Importance of Motivation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 20 2.3.2 Types of Motivation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 21 2.3.3 Theories of Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 23 2.3.4 Effects of Motivation on Work Behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 35

2.4 Personality and Value ......................................................................................2 - 37 2.4.1 Measuring Personality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 38 2.4.2 Types of Personality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 39 2.4.3 Big Five of Personality Based on Traits Approach (OCEAN) . . . . . . . . . . . . . . . . 2 - 40 2.4.4 Factors Influencing Personality/Determinants of Personality . . . . . . . . . . . . . . 2 - 41 2.4.5 Theories of Personality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 42 2.4.6 Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 44 2.4.7 Learning and Learning Theories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 46 2.4.8 Types of Learners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 48 2.4.9 The Learning Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 48 2.4.10 Organizational Behaviour Modification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 49

2.5 Misbehaviour...................................................................................................2 - 50 2.5.1 Types of Misbehaviour and Management Intervention. . . . . . . . . . . . . . . . . . . 2 - 50

2.6 Emotions..........................................................................................................2 - 51 2.6.1 Emotional Labour. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 52 2.6.2 Emotional Intelligence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 53 2.6.3 Theories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 53

2.7 Impression Management.................................................................................2 - 55 2.8 Individual Decision Making Techniques...........................................................2 - 56 Chapter - 3

Group Behaviour

(3 - 1) to (3 - 36)

3.1 Organization Structure ......................................................................................3 - 2 3.1.1 Types of Organizational Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 3 3.1.2 Emerging Organizational Designs / Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 3

3.2 What is a Group ? .............................................................................................3 - 6 3.2.1 Characteristics of a Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 6 3.2.2 Groups in Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 6 (vii)

3.2.3 Formation of Groups in Organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 7

3.3 Factors Influencing the Group Processes ..........................................................3 - 9 3.3.1 Group Dynamics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 9

3.4 Group Decision Making ...................................................................................3 - 12 3.4.1 Advantages of Group Decision Making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 12 3.4.2 Disadvantages of Group Decision Making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 13 3.4.3 Group Decision Making Techniques. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 13

3.5 Team Building ..................................................................................................3 - 16 3.5.1 What is a Team ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 16 3.5.2 Team Building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 17 3.5.3 Team Building Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 18 3.5.4 Impact of Team Building Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 19

3.6 Communication ...............................................................................................3 - 20 3.6.1 Communication Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 20 3.6.2 Effective Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 21 3.6.3 Flow of Communication in Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 22 3.6.4 Grapevine - The Informal Channel of Business Communication . . . . . . . . . . . 3 - 25 3.6.5 Business Communication Channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 27

3.7 Control .............................................................................................................3 - 29 3.7.1 Principles of Internal Control (Ways of Imposing Control in Organizations) . . 3 - 30

3.8 Johari Window .................................................................................................3 - 31 Questions...............................................................................................................3 - 34 Exercises ................................................................................................................3 - 35 Chapter - 4

Leadership and Power

(4 - 1) to (4 - 26)

4.1 Meaning of Leadership ......................................................................................4 - 2 4.1.1 Importance of Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 2

4.2 Leadership Styles ...............................................................................................4 - 3 4.2.1 Leadership Styles based on Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 4 4.2.2 Likert's Four Styles of Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 5 4.2.3 Leadership Styles in Managerial Grid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 7

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4.2.4 Leadership Continuum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 10

4.3 Behavioural Theories .......................................................................................4 - 11 4.3.1 Michigan Leadership Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 11 4.3.2 Ohio State Leadership Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 12

4.4 Fiedler Model...................................................................................................4 - 14 4.5 LMX Theory and Path Goal Theory ..................................................................4 - 14 4.5.1 LMX Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 14 4.5.2 Path Goal Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 16

4.6 Leaders Vs Managers.......................................................................................4 - 17 4.7 Sources of Power .............................................................................................4 - 18 4.8 Power Centers .................................................................................................4 - 20 4.9 Power and Politics ...........................................................................................4 - 21 Questions...............................................................................................................4 - 25 Chapter - 5

Dynamics of Organizational Behavior

(5 - 1) to (5 - 22)

5.1 Organizational Culture and Climate...................................................................5 - 2 5.2 Factors Affecting Organizational Climate ..........................................................5 - 3 5.3 Importance of Organizational Culture and Climate...........................................5 - 4 5.4 Job Satisfaction ..................................................................................................5 - 5 5.4.1 Determinants and Measurements of Job Satisfaction . . . . . . . . . . . . . . . . . . . . . 5 - 5 5.4.2 Measuring Job Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 7 5.4.3 Influence of Job Satisfaction on Behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 8

5.5 Stress .................................................................................................................5 - 9 5.5.1 Work stressors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 10

5.6 Prevention and Management of Stress ...........................................................5 - 12 5.7 Balancing Work and Life ..................................................................................5 - 13 5.8 Methods for Implementing Organizational Change ........................................5 - 16 5.8.1 Kurt Lewin's Three Step Model of Managing Change. . . . . . . . . . . . . . . . . . . . . 5 - 17 5.8.2 Kotter's Eight-Step Plan for Implementing Change . . . . . . . . . . . . . . . . . . . . . . 5 - 18 5.8.3 Action Research Method of Implementing Change . . . . . . . . . . . . . . . . . . . . . . 5 - 19

Questions...............................................................................................................5 - 20 Exercises ................................................................................................................5 - 21 (ix)

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1

Focus & Purpose of Organizational Behavior

Syllabus Focus and Purpose : Definition, need and importance of organizational behavior, Nature and scope, Frame work, OB model.

Contents 1.1

Introduction

1.2

Need and Importance of Organizational Behaviour

1.3

Nature and Scope of OB

1.4

Theoretical Framework of OB

1.5

OB Model

Questions

(1 - 1)

Organizational Behavior

1-2

Focus & Purpose of Organizational Behavior

Objectives :

 To understand what is Organizational Behaviour  To understand why Organizational Behaviour is important  To appreciate the fact that understanding and managing human behaviour at work not only improves work environment but contributes to the increase in productivity  To understand the nature of Organizational behaviour and its scope  To establish the theoretical framework of Organizational Behaviour  To understand the different levels of analysis of human behaviour done in Organizational Behaviour

1.1 Introduction  The productivity, and eventually the profitability of an organization depends on how

the implementation of plans have been done basis its vision. And the successful implementation of a plan happens with the help of material resources and systems. How the resources will be used and system followed is decided by the most important resource of an organization - the human resource. The successful implementation of plans and vision with correct deployment of material resource and systems depends on human aspects like efficiency, personal effectiveness, communication, decision making, judgement, power, authority, motivation, purpose, etc. Most leaders spend all of their time in managing material resources and redesigning systems to obtain desired results. But seldom do they realize that “HOW” an employee does the work is the deciding factor for success and so, they keep their focus on the “WHAT” part of work.  How a human being will behave in a given situation and system, depends largely on

many factors and that makes it more complex. Organizational behaviour deals with this human aspect. It can be defined as the understanding, prediction and management of human behaviour in an organization. It is the study of human behaviour in organizational context, the relation between employees and their behaviour with each other and their interaction with the organization. It examines the aspects like human psychology, human relations, leadership, power, authority, motivation, purpose, etc. to find out ways to deal with human behaviour so that the productivity of an organization is improved. It is the study and application of knowledge about how people as individual and as group act within organizations.

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Focus & Purpose of Organizational Behavior

1.2 Need and Importance of Organizational Behaviour  An organization is a group of people working to achieve a common goal. These people

work in different capacities, with different control, skills, motivation, personal goals, etc. Their interaction is at different levels. The human behaviour is influenced by many factors internal and external and in turn influences the environment. Hence, human behaviour can be influenced and can influence the surrounding. With this clarity, we know that by managing human behaviour through right influences, we can get desired actions and results. Moreover, due to the changing scenario of the professional world, the structures of organizations have become very versatile.  The technological development has led to structures which are not well defined. There

was a time when people used to work in only one organization in their entire career, while at present, loyalty is not expected from an employee. People freely change jobs if they get better options. Again, internet and social media has provided platforms for global businesses which in turn influences the way of working, staffing, motivation, etc. Each of these provides a challenge for the leader on “How an employee will work”? What will influence the employees and influenced by the employees. Through proper understanding of this, a leader can deal with human behaviour to improve the productivity of the organization.

1.2.1 How Organizational Behaviour Studies Help Leaders and Employees in an Organization ?  OB teaches you what makes people make decisions, why employees are not motivated

to do what you want them to do and why people are productive or not productive.  OB helps in making decisions and creating an environment where people can be

creative and motivated.  OB helps in understanding the power and organizational politics, if not so, an

employee and a leader has to struggle in a large organization to make things happen.  OB applies the knowledge gained from individuals, groups, and the effect of structure

on behavior in order to make organizations work more effectively.  OB clarifies what influences people's behaviour and their work.  OB helps identify the motivational factors for individuals and a team.  OB helps in aligning the goals of the organization with that of the team and tries to

bridge the gap between the two.  OB helps to learn about oneself and how to deal with others.  OB helps a manager to get things done better.  OB helps in controlling and directing behaviour.

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Focus & Purpose of Organizational Behavior

1.2.2 The Importance of Organizational Behaviour  OB gives an insight into the effect of structure, other individuals and system on

behaviour of employees to make organizations work more effectively.  OB is important because it considers the psychological and social aspects of human

behaviour  OB is important because it helps in predicting and directing behaviour  OB helps to maintain cordial industrial relations which help to increase the overall

productivity of the industry.  OB is also useful in the field of marketing  OB helps in improving the inter-personal relationships thereby creating a positive and

friendly environment where everyone is motivated to work.  OB helps leaders to apply various motivational techniques as per individual

employees.  OB tackles human problems humanely. It helps understand the cause of the problem,

predicts is the future course of action and controls its negative consequences.  OB helps in how to predict human behaviour and then apply it in some useful manner

to get desired results from fellow employees, subordinates and customers.  OB has a great impact on individuals as well as organizations and in order to run a

business effectively and efficiently, the study of OB is very essential.

1.3 Nature and Scope of OB 1. OB is a separate field of study and not a discipline only :  By definition, a discipline is an accepted science that is based on a theoretical

foundation. But, OB has a multi-interdisciplinary orientation and is thus, not based on a specific theoretical background. 2. OB is an applied science :  It is an applied science because what it basically does is the application of various

research to solve the organizational problems related to human behavior. The basic line of difference between pure science and OB is that while the former concentrates on fundamental research, the latter concentrates on applied research. So by nature, OB is an applied science that takes a systematic approach that understands the reason behind the behaviour and influences it in a way that benefits attaining business goals.

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Focus & Purpose of Organizational Behavior

3. OB is a science as well as an art :  As it helps in understanding human behaviour and dealing with the thinking and

feelings of humans, it requires a particular skill. So, OB can be called an art because dealing with people is an art. 4. OB is a normative science :  Normative science is an information that is developed, presented, or interpreted based

on an assumed, usually unstated, preference for a particular outcome, policy or class of policies or outcomes. While positive science discusses the only cause-effect relationship, OB prescribes how the findings of applied research can be applied to socially accepted organizational goals. OB deals with what is accepted by individuals and society engaged in an organization. 5. OB has a humanistic approach :  Organizational Behaviour applies humanistic approach towards people working in the

organization. It, deals with the thinking and feeling of human beings. O.B. is based on the belief that people have an innate desire to be independent, creative and productive. It also realizes that people working in the organization can and will actualize these potentials if they are given proper conditions and environment. Environment affects performance or workers working in an organization. 6. OB is a total system approach :  The system approach is one that integrates all the variables, affecting organizational

functioning. The systems approach has been developed by the behavioural scientists to analyse human behaviour in view of his/her socio-psychological framework. Man's socio-psychological framework makes man complex and the systems approach tries to study his/her complexity and find solution to it. 7. OB has an interdisciplinary approach :  Organizational Behaviour is an applied behavioural science that is built on the

contributions derived from various disciplines like psychology, sociology, social psychology, anthropology, economics and political science.

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