Organizational Behaviour - MBA 101
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Organizational Behavior (OB)

The study of how people think, feel, and behave in and around organizations.

Organization

A group of people working together in a formally organized way towards a common objective.

Organizational Structure

The framework within which managerial and operating tasks are performed. It specifies the relationships between people, work, and resources.

Functional Structure

A type of structure where activities are grouped based on specific functions, like production, sales, or marketing.

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Divisional Organization Structure

A structure where the whole enterprise is divided according to major products.

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Formal Organization

The organization structure designed by management to accomplish organizational goals.

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Informal Organization

A network of social relationships among employees that emerges spontaneously from interactions at work.

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Personality

The sum total of ways in which an individual reacts and interacts with others.

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Personality Traits

Enduring characteristics that describe an individual's behavior.

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Self-Esteem

A person's feelings of self-worth.

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Self-Monitoring

The degree to which people adjust their behavior based on cues from people and situations.

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Locus of Control

The degree to which people believe they control their own fate.

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Positive Affect

A personality trait that reflects an individual's tendency to accentuate the positive aspects of themselves, others, and the world.

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Negative Affect

A personality trait that reflects an individual's tendency to accentuate the negative aspects of themselves, others, and the world.

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Perception

The intellectual process of transforming sensory stimuli into meaningful information.

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Values

An individual's beliefs concerning appropriate courses of action or outcomes.

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Terminal Values

Desirable end-states that a person would like to achieve during their lifetime.

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Instrumental Values

Preferable modes of behavior or means of achieving terminal values.

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Motivation

The process that accounts for an individual's intensity, direction, and persistence of effort toward attaining a goal.

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Intrinsic Motivation

Efforts generated from within oneself that lead to a particular behavior.

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Extrinsic Motivation

Efforts made by others to motivate people, like rewards, punishments, or appreciation.

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Maslow's Hierarchy of Needs Theory

A theory that suggests individuals are motivated based on a hierarchy of needs, starting with basic physiological needs and progressing to self-actualization.

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Hygiene Factors

Job factors that are important for the existence of motivation at work, but their absence leads to dissatisfaction.

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Motivational Factors

Job factors that act as motivators for employees, their presence leads to job satisfaction, and their absence doesn't necessarily cause dissatisfaction.

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McClelland's Theory of Needs

A theory that suggests that individuals are motivated by three needs: achievement, affiliation, and power.

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Theory X and Theory Y

A theory that describes two contrasting models of workforce motivation, Theory X assuming workers are lazy and need to be controlled, and Theory Y assuming workers are self-motivated and seek responsibility.

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William Ouchi's Theory Z

A theory that emphasizes a humanistic philosophy, teamwork, and consensus decision-making, focusing on long-term employment, non-specialized careers, and individual responsibility.

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Expectancy Theory

A theory that focuses on the cognitive processes involved in motivation, suggesting that individuals are motivated by their beliefs about their ability to perform, their expectations of rewards, and the value of those rewards.

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Porter-Lawler Model

A model that builds upon Expectancy Theory, adding elements of job satisfaction, perceptions of rewards, and equity theory.

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Equity Theory

A theory that suggests individuals are motivated by a sense of fairness, comparing their inputs and outputs to those of others.

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Divisional Structure

Dividing a company based on major products or services.

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Study Notes

Organizational Behaviour - MBA 101

  • Organisation Behaviour (OB) is the study and application of knowledge on how people act within an organization.
  • OB is concerned with how people behave in an organization and how their behavior affects performance.
  • Organizations are groups of people who work interdependently towards a common purpose, often with a profit maximization objective.
  • Features of an organization include: a group of people, formally organized people/structure, co-ordination among people, rationality, and a purposeful objective.
  • Functions of an organization: determination of activities, grouping of activities, allotment of duties to specified persons, delegation of authority, defining relationships, and coordination of activities.
  • Organizational structure: The framework within which managerial and operating tasks are performed. It explains the relationship between people, work and resources in an organization.
  • Span of Management: The number of subordinates that can be effectively managed by a superior. This impacts organization structure and levels of management.

Introduction and Individual Behaviour

  • Module I covers introductions and individual behaviours.
  • Topics covered include: understanding organizational behavior, nature and structure of organization and foundations of individual behavior. (Ability, Attitude, Job Satisfaction, Personality, Values, Perception, Motivation-Theories, leadership).
  • Globant, a software development company, is a successful example of applying teamwork, design thinking, an inclusive culture, and organizational behavior practices.

Foundations of Individual Behaviour

  • Factors influencing individual behavior:
  • -Biographic Characteristics: (physical, age, gender, religion, marital status) affect individual behavior in the organization.
  • -Learned Characteristics: (personality, perception, values, attitudes) affect individual behavior in the organization.
  • -Environmental Factors: (employment level, wages rate, economic environment, political factors) affect individual behavior in the organization.
  • -Organizational Factors: (physical facilities, structure and design, reward system) affect individual behavior in the organization.

Personality

  • Personality: The sum total of ways in which an individual reacts and interacts with others.
  • Personality Traits: Enduring characteristics that describe an individual's behavior.
  • Personality Determinants: Heredity, Environment, and Situation
  • Personality Characteristics in Organizations: Self-Esteem, Self-Monitoring, Risk-Taking, Type A and Type B Personality, Proactive Personality
  • The Myers-Briggs Type Indicator (MBTI): A self-report inventory designed to identify a person's personality type, strengths, and preferences based on Carl Jung's theory of personality types. The MBTI categorizes individuals into one of 16 personality types.
  • The Big Five Model: A five-factor model of personality, commonly known as the Big Five. (Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism).
  • Personality Theories: Trait Theory, Psychodynamic Theory, Humanistic Theory, Integrative Approach

Perception

  • Perception: An intellectual process of transforming sensory stimuli into meaningful information.
  • Perceptual Process: Receiving, Selecting, Organising, and Interpreting stimuli.
  • Factors influencing Interpretation: Perceptual set; Attribution, Stereotyping, Halo effect
  • Importance of perception in organizations: Understanding, predicting, and controlling behavior, establishing performance goals, aiding decision-making, and organizing situations effectively.

Attitudes

  • Attitudes: Predisposed states of mind regarding a value, precipitated through a person's responsive expression toward oneself, another person, place, thing, or event.
  • Components of Attitudes: Cognitive, Affective, and Behavioral.
  • Attitude Functions: Adjustment, Ego defense, Value expressive, and Knowledge.
  • Importance of Attitudes to Managers: Importance to warn of potential problems, do things to generate positive attitudes, increase positive behaviors, reduce dissonance.
  • Attitude Change: Information, fear, resolving discrepancies, influence from friends or peers.

Motivation

  • Motivation: The intensity, direction, and persistence of effort toward attaining a goal.
  • Key Elements of Motivation: Intensity, Direction and Persistence.
  • Intrinsic vs Extrinsic Motivation: Intrinsic motivation is self-generated; extrinsic motivation is generated from others. (e.g., praise, bonuses, pay increases)
  • Benefits of Motivation: Puts human resources into action, Improves efficiency, Leads to achievement of organizational goals, Builds friendly relations, and Leads to stability in the workforce.
  • Reasons for demotivation: No recognition, Setting unrealistic goals, Overloaded, Micromanagement, Lack of opportunity, Workplace environment, Job-security.
  • Motivation Theories: Vroom's Expectancy Theory, Porter-Lawler Model, Equity Theory, Cognitive Evaluation, Goal-Setting, Reinforcement theory, Theory X/Theory Y, Carrot-and-Stick Approach, and William Ouchi's Theory Z.

Leadership

  • Leadership: The process of directing the behavior of others toward achieving a common goal -- getting things done through others.
  • Significance of Leadership: Initiating action, Providing motivation, Providing guidance, creating employee confidence, building a work environment, co-ordination, and inducing change .
  • Leadership Styles : Autocratic, Laissez-faire, Democratic, Leader-centered, Participative, Free Rein, Transactional, and Transformational.
  • Leadership Theories: Great Man, Trait, Behavioral, Contingency, Charismatic, and Transactional.

References

  • Stephen Robbins, Organizational Behavior.
  • K. Ashwathappa, Organisational Behaviour, Tata McGraw-Hill.
  • McShane, S., & Von Glinow, M. A.

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MBA 101 Module I PDF

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This quiz explores the key concepts of Organizational Behaviour as studied in MBA 101. It covers how individuals behave within organizations and the impact of these behaviors on overall performance. Key topics include organizational structure, functions, and management principles.

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