Finals Reviewer: Organizational Behaviour

1. Definition of Motivation
  • Motivation: “The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.”
  • Intensity: How hard a person tries.
  • Direction: Effort channeled toward a goal.
  • Persistence: How long a person maintains effort.
2. Maslow’s Hierarchy of Needs Theory
  • Hierarchy of Needs: Five needs arranged in a hierarchy—each must be satisfied before moving to the next:
  1. Physiological: Basic needs (food, water).
  2. Safety: Security and protection.
  3. Social: Belongingness and love.
  4. Esteem: Self-respect, recognition.
  5. Self-Actualization: Reaching one’s potential.
  • Lower-Order Needs: Satisfied externally (physiological and safety).
  • Higher-Order Needs: Satisfied internally (social, esteem, and self-actualization).
3. Theory X and Theory Y (Douglas McGregor)
  • Theory X: Managers believe employees dislike work and avoid responsibility.
  • Theory Y: Managers believe employees enjoy work and are self-directed.
4. Herzberg’s Two-Factor Theory
  • Hygiene Factors (extrinsic): Lead to dissatisfaction if absent (e.g., salary, company policies).
  • Motivators (intrinsic): Lead to satisfaction (e.g., achievement, recognition, growth).
5. McClelland’s Theory of Needs
  • Need for Achievement: Drive to excel and succeed.
  • Need for Affiliation: Desire for friendly and close relationships.
  • Need for Power: Desire to influence others.
6. Cognitive Evaluation Theory
  • Premise: Adding extrinsic rewards to previously intrinsically rewarding tasks reduces motivation.
7. Goal-Setting Theory (Edwin Locke)
  • Specific and challenging goals with feedback lead to higher performance.
  • Key Factors:
    • Goal Commitment: Belief in goal achievement.
    • Task Characteristics: Simpler tasks enhance the goal effect.
  • Management by Objectives (MBO): Aligning individual goals with organizational goals through participative decision-making and feedback.
8. Self-Efficacy Theory (Albert Bandura)
  • Self-Efficacy: Belief in one’s capability to perform a task.
  • Ways to Increase Self-Efficacy:
    1. Enactive Mastery: Gaining experience.
    2. Vicarious Modeling: Observing others succeed.
    3. Verbal Persuasion: Encouragement from others.
    4. Arousal: Emotional excitement to complete tasks.
9. Reinforcement Theory
  • Behavior is a function of its consequences.
  • Positive Reinforcement: Rewarding desired behavior.
  • Negative Reinforcement: Removing negative conditions to encourage behavior.
  • Punishment: Applying undesirable outcomes to reduce behavior.
  • Extinction: Withholding reinforcement to eliminate behavior.
  • Schedules of Reinforcement:
    • Continuous Reinforcement: Every correct behavior is reinforced.
    • Intermittent Reinforcement: Behavior is reinforced occasionally.
10. Equity Theory
  • Equity Theory: Individuals compare their input-output ratio with others.
  • Responses to Inequity:
    1. Change inputs.
    2. Change outcomes.
    3. Distort perceptions of self or others.
    4. Choose a different referent.
    5. Leave the organization.
11. Expectancy Theory
  • Expectancy Theory: Motivation depends on the expected outcome and its attractiveness.
  • Three Components:
    1. Expectancy: Effort leads to performance.
    2. Instrumentality: Performance leads to rewards.
    3. Valence: Attractiveness of the reward.

1. Definition and Types of Groups
  • Group: “Two or more individuals interacting and interdependent, who have come together to achieve particular objectives.”
  • Formal Group: Defined by the organization’s structure.
  • Informal Group: Forms naturally and is not officially structured.
  • Command Group: Individuals reporting directly to a manager.
  • Task Group: People working together to complete a specific job.
  • Interest Group: Formed to achieve a shared objective.
  • Friendship Group: Based on shared personal characteristics.
2. Reasons People Join Groups
  • Security
  • Status
  • Self-esteem
  • Affiliation
  • Power
  • Goal achievement
3. The Five-Stage Model of Group Development
  1. Forming: Group members meet, and uncertainty exists.
  2. Storming: Intragroup conflict arises as members vie for roles.
  3. Norming: Cohesiveness develops, and group norms are established.
  4. Performing: The group functions effectively toward objectives.
  5. Adjourning: Temporary groups disband after achieving their goal.
4. Punctuated-Equilibrium Model
  • Temporary groups alternate between inertia and bursts of productivity, with a key transition occurring halfway through their timeline.
5. Group Properties
  • Roles: Expected behavior patterns for individuals.
  • Role Identity: Associated behaviors with a specific role.
  • Role Perception: How a person believes they should act.
  • Role Conflict: Arises when individuals face differing expectations.
  • Norms: Accepted standards of behavior within a group.
  • Performance Norms: Expected levels of performance.
  • Social Arrangement Norms: Norms governing relationships and interactions.
  • Hawthorne Studies: Demonstrated the power of group norms on individual behavior.
  • Status: Socially defined rank within a group.
  • Influenced by power, ability to contribute, and personal characteristics.
  • Size: Group size affects performance.
  • Social Loafing: Tendency for members to exert less effort in groups than individually.
  • Cohesiveness: The degree to which members are attracted to the group and motivated to stay.
6. Group Decision-Making
  • Strengths: Greater diversity of views, more complete information, higher quality decisions.
  • Weaknesses: Time-consuming, pressures to conform, potential dominance by a few members.
  • Groupthink: A phenomenon where consensus overrides realistic appraisals of alternatives.
  • Symptoms of Groupthink: Rationalizing doubts, applying pressure to dissenters, and creating an illusion of unanimity.
  • Groupshift: A change in risk preference after group discussion—either more conservative or riskier than individuals’ initial choices.
7. Decision-Making Techniques
  • Interacting Groups: Face-to-face interaction.
  • Brainstorming: Generating ideas without criticism.
  • Nominal Group Technique: Independent judgment followed by group discussion.
  • Electronic Meetings: Anonymity and aggregation of votes via computer systems.
8. Deviant Workplace Behavior
  • Production Deviance: Leaving early, wasting resources.
  • Property Deviance: Sabotage, stealing.
  • Political Deviance: Gossip, favoritism.
  • Personal Aggression: Verbal abuse, harassment.

1. Why Have Teams Become Popular?
  • Teams outperform individuals.
  • Teams utilize employee talents effectively.
  • Teams are more flexible and responsive to changes.
  • Teams increase employee involvement.
  • Teams democratize organizations and boost motivation.
2. Difference Between Work Groups and Work Teams
  • Work Group: Interacts to share information and help each member perform their individual tasks.
  • Work Team: Generates positive synergy through coordinated efforts, achieving more than individual contributions.
3. Types of Teams
  1. Problem-Solving Teams:
  • Groups of 5 to 12 employees who meet weekly to improve quality, efficiency, and the work environment.
  1. Self-Managed Work Teams:
  • Groups of 10 to 15 employees taking on the responsibilities of their former supervisors.
  1. Cross-Functional Teams:
  • Employees from different departments or areas working together to achieve a task.
  1. Virtual Teams:
  • Teams connected through technology, overcoming geographic and time constraints.
  • Characteristics:
    • Limited social context.
    • Absence of paraverbal/nonverbal cues.
4. Creating Effective Teams
  • Key Factors:
  1. Context: Adequate resources, leadership, trust, and performance evaluation.
  2. Composition: Right mix of abilities, personalities, roles, and size.
  3. Process: Clear purpose, specific goals, and minimal social loafing.
5. Challenges of Turning Individuals into Team Players
  • Overcoming resistance to team membership.
  • Shifting from individualistic cultures to team-focused behavior.
  • Adapting reward systems to recognize cooperative efforts.
6. Team Effectiveness Model
  • Goal: Maximize process gains while minimizing process losses.
7. Group Demography and Cohorts
  • Group Demography: Degree to which members share demographic attributes, affecting turnover.
  • Cohorts: Individuals with shared demographic attributes within a group.
8. Teams and Quality Management
  • Effective Teams:
  • Are small and efficient.
  • Properly trained with required skills.
  • Empowered to resolve issues.
  • Have a designated leader or champion.
9. When Teams May Not Be the Best Solution
  • Tests to Determine Team Fit:
  1. Is the work complex, needing diverse perspectives?
  2. Does the task require shared goals that exceed individual objectives?
  3. Are the tasks interdependent?

1. Definition of Communication
  • Communication: “The transference and the understanding of meaning.”
2. Functions of Communication
  1. Control: Regulates member behavior.
  2. Motivation: Fosters motivation through clear instructions and feedback.
  3. Emotional Expression: Provides a release for emotions and feelings.
  4. Information: Facilitates decision-making by providing the necessary data.
3. The Communication Process
  • Key Elements:
  • Sender: Initiates the message.
  • Encoding: Transforming thoughts into messages.
  • Message: The content being communicated.
  • Channel: The medium of transmission (formal/informal).
  • Decoding: Interpreting the message.
  • Receiver: The person for whom the message is intended.
  • Noise: Interference that distorts the message.
  • Feedback: Receiver’s response to the message.
4. Communication Channels
  • Formal Channels: Established by the organization for professional communication.
  • Informal Channels: Personal or social communication, often spontaneous.
5. Types of Communication
  1. Oral Communication:
  • Advantages: Quick and allows feedback.
  • Disadvantages: Prone to distortion.
  1. Written Communication:
  • Advantages: Tangible, verifiable.
  • Disadvantages: Time-consuming, lacks immediate feedback.
  1. Nonverbal Communication:
  • Includes body language, facial expressions, and tone.
6. Barriers to Effective Communication
  • Filtering: Manipulating information to be viewed favorably.
  • Selective Perception: Interpreting messages based on personal interests.
  • Information Overload: More information than can be processed.
  • Emotions: Affect how messages are interpreted.
  • Language: Different meanings across individuals.
  • Communication Apprehension: Anxiety about communicating.
7. Interpersonal Communication Differences
  • Men: Communicate to emphasize status and independence.
  • Women: Communicate to create connections and intimacy.
8. The Grapevine
  • Informal network that is often perceived as more reliable than formal communication.
  • Used for personal interests and spreads in ambiguous or anxiety-inducing situations.
9. Computer-Aided Communication
  • Email: Quick and cost-effective, but may lead to overload.
  • Instant Messaging: Real-time but can be disruptive.
  • Intranets and Extranets: Facilitate internal and external communication.
  • Videoconferencing: Enables virtual face-to-face meetings.
10. Knowledge Management (KM)
  • KM: “A process of organizing and distributing an organization’s collective wisdom so the right information gets to the right people at the right time.”
11. Channel Richness
  • Rich Channels: Convey multiple cues, allow rapid feedback, and are personal in context.
12. Cultural Context in Communication
  • High-Context Cultures: Rely on nonverbal and situational cues.
  • Low-Context Cultures: Depend on explicit verbal communication.

1. Definition of Power
  • Power: “A capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes.”
  • Dependency: B’s reliance on A when A possesses something B requires.
2. Contrasting Leadership and Power
  • Leadership: Focuses on goal achievement, requires goal compatibility, and influences downward.
  • Power: A means to achieve goals, requires dependency, and influences in all directions (upward, downward, lateral).
3. Bases of Power
  • Formal Power: Based on an individual’s position.
  • Coercive Power: Based on fear.
  • Reward Power: Based on control over rewards.
  • Legitimate Power: Derived from formal authority within an organization.
  • Personal Power: Based on an individual’s characteristics.
  • Expert Power: Based on knowledge or skills.
  • Referent Power: Based on possession of desirable traits or resources.
4. Dependency: The Key to Power
  • General Dependency Postulate: The more B depends on A, the more power A has.
  • Dependency Factors:
  • Importance: Value of the resource.
  • Scarcity: Limited availability of the resource.
  • Nonsubstitutability: Lack of alternatives for the resource.
5. Power Tactics
  • Legitimacy: Using formal authority or rules.
  • Rational Persuasion: Using logic and facts.
  • Inspirational Appeals: Appealing to values and aspirations.
  • Consultation: Involving others in decisions.
  • Exchange: Offering rewards for compliance.
  • Personal Appeals: Based on friendship or loyalty.
  • Ingratiation: Using praise or flattery.
  • Pressure: Using warnings or threats.
  • Coalitions: Gaining support from others.
6. Coalitions
  • Temporary alliances aimed at achieving specific objectives.
  • Common in organizations with high interdependencies and standardized tasks.
7. Politics in Organizations
  • Political Behavior: Activities that influence the distribution of advantages in an organization.
  • Legitimate Political Behavior: Normal everyday politics (e.g., forming networks).
  • Illegitimate Political Behavior: Extreme actions that violate norms (e.g., sabotage).
8. Factors Influencing Political Behavior
  • Individual Factors: Personality traits, needs, and perceptions.
  • Organizational Factors: Resource scarcity, role ambiguity, and politics-friendly cultures.
9. Defensive Behaviors
  • Reactive behaviors aimed at avoiding action, blame, or change.
10. Sexual Harassment as an Abuse of Power
  • Sexual Harassment: Unwelcome sexual advances or conduct.
  • Prevention Steps:
  1. Create and enforce policies.
  2. Ensure complaint procedures are safe.
  3. Investigate all complaints.
  4. Discipline offenders.
  5. Provide training and seminars.
11. Ethical Considerations of Political Behavior
  • Key Questions:
  1. What is the utility of the behavior?
  2. Does the action balance harm with benefit?
  3. Does it align with standards of fairness and justice?

1. Definition of Conflict
  • Conflict: “A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.”
  • Arises from:
  • Incompatible goals
  • Differences over facts
  • Disagreements about behavioral expectations
2. Views on Conflict
  1. Traditional View: All conflict is harmful and must be avoided.
  2. Human Relations View: Conflict is natural and inevitable in any group.
  3. Interactionist View: Conflict is necessary for effective group performance.
3. Functional vs. Dysfunctional Conflict
  • Functional Conflict: Improves group performance and supports goals.
  • Dysfunctional Conflict: Hinders group performance and is counterproductive.
4. Types of Conflict
  • Task Conflict: Focused on content and goals of work.
  • Relationship Conflict: Based on interpersonal issues.
  • Process Conflict: Disputes over how tasks should be performed.
5. Conflict Process (Stages)
  1. Stage I: Potential Opposition or Incompatibility
  • Causes: Communication issues, structure, and personal variables.
  1. Stage II: Cognition and Personalization
  • Perceived Conflict: Awareness of potential conflict.
  • Felt Conflict: Emotional involvement in conflict.
  1. Stage III: Intentions
  • Conflict-handling strategies:
    • Competing: Pursuing one’s interests at others’ expense.
    • Collaborating: Fully satisfying the concerns of all parties.
    • Avoiding: Withdrawing from conflict.
    • Accommodating: Placing others’ interests above one’s own.
    • Compromising: Finding a middle ground.
  1. Stage IV: Behavior
  • Use of resolution or stimulation techniques to manage conflict.
  1. Stage V: Outcomes
  • Functional Outcomes: Increased performance, better decisions, creativity, problem-solving.
  • Dysfunctional Outcomes: Reduced effectiveness, communication breakdown, infighting.
6. Negotiation
  • Negotiation: “A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate.”
  • BATNA (Best Alternative to a Negotiated Agreement): The lowest acceptable outcome for a negotiated agreement.
7. Bargaining Strategies
  • Distributive Bargaining: Dividing a fixed resource (win-lose outcome).
  • Integrative Bargaining: Finding solutions that benefit all parties (win-win outcome).
8. Issues in Negotiation
  • Role of Moods and Personality: Positive moods improve negotiations; personality traits have limited effect.
  • Gender Differences: Men and women achieve similar negotiation outcomes, though women may have lower success perceptions.
9. Third-Party Negotiations
  • Mediator: Uses persuasion to facilitate agreement.
  • Arbitrator: Has the authority to impose a solution.
  • Consultant: Helps resolve conflict through problem-solving techniques.
  • Conciliator: Acts as an informal link between disputing parties.

1. Forces for Change
  • External Forces:
  • Changes in workforce demographics (e.g., cultural diversity).
  • Technological advancements.
  • Economic shocks (e.g., high inflation, cryptocurrencies).
  • Increased competition and globalization.
  • Social trends (e.g., use of social media, generational shifts).
  • Political changes (e.g., regional conflicts, terrorism).
2. Managing Planned Change
  • Goals of Planned Change:
  1. Improving organizational adaptability.
  2. Changing individual and group behaviors.
  • Change Agents: Individuals who act as catalysts for change and manage the process.
3. Resistance to Change
  • Forms of Resistance:
  • Overt and Immediate: Complaints, strikes.
  • Implicit and Deferred: Loss of motivation, absenteeism, increased errors.
  • Sources of Individual Resistance: Habit, fear of the unknown, security needs, and economic concerns.
  • Sources of Organizational Resistance: Structural inertia, group norms, threat to expertise or power.
4. Change Models
  • Lewin’s Three-Step Model:
  1. Unfreezing: Overcoming resistance to change.
  2. Movement: Implementing the change.
  3. Refreezing: Stabilizing the new state.
  • Kotter’s Eight-Step Plan:
  1. Create urgency for change.
  2. Form a powerful coalition.
  3. Develop a vision and strategy.
  4. Communicate the vision.
  5. Empower employees to act.
  6. Generate short-term wins.
  7. Consolidate gains and make further changes.
  8. Anchor changes in the organizational culture.
5. Organizational Development (OD)
  • OD Values:
  • Respect for people.
  • Trust and support.
  • Equal power distribution.
  • Open confrontation of problems.
  • Participation in decisions.
  • OD Techniques:
  1. Sensitivity Training: Increasing self-awareness and empathy.
  2. Survey Feedback: Identifying and addressing discrepancies.
  3. Process Consultation: Helping clients improve interactions.
  4. Team Building: Enhancing trust and openness among members.
  5. Appreciative Inquiry: Focusing on organizational strengths.
6. Stress in the Workplace
  • Definition of Stress: A dynamic condition where individuals face challenges with uncertain outcomes.
  • Types of Stressors:
  • Challenge Stressors: Associated with workload and time pressure.
  • Hindrance Stressors: Related to office politics and unclear responsibilities.
  • Sources of Stress:
  • Environmental: Economic uncertainty, political instability, and technological changes.
  • Organizational: Job demands, role expectations, interpersonal challenges.
  • Individual: Family issues, economic difficulties, personality traits.
7. Consequences of Stress
  • Physiological Symptoms: Headaches, high blood pressure.
  • Psychological Symptoms: Anxiety, depression.
  • Behavioral Symptoms: Increased absenteeism, poor performance.
8. Managing Stress
  • Individual Approaches:
  • Time management.
  • Physical exercise.
  • Relaxation techniques.
  • Building social support networks.
  • Organizational Approaches:
  • Employee training and realistic goal setting.
  • Job redesign and employee involvement.
  • Effective communication.
  • Offering sabbaticals and wellness programs.

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