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Title62711438 Organizational Behavior Final Exam Note[1]
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ORGANIZATIONAL BEHAVIOR – All Final

Q.1: Organizational Behavior: Organizational Behavior is the
study and application of knowledge about how people- as
individuals and as groups- act within organizations. It strives to
identify ways in which people can act more effectively.

It is also an applied science which provides a useful set of tools at
many levels of analysis. For example: It helps Managers to look at
the behavior of individuals within an organization.



Q.2: Goals of Organizational Behavior: There are basically four
goals of Organizational Behavior:

1. Describe: Describe systematically, how people behave under a
variety of conditions. Achieving this goal allows Managers to
communicate about human behavior at work using a common
language.

2. Understand: A second goal is to understand why people
behave as they do.

3. Predict: Predicting future employee behavior is another goal of
Organizational Behavior.

4. Control: The final goal of Organizational Behavior is to control,
at least partially and develop some human behavior at work.



Q.3: Forces of Organizational Behavior: A complex set of
forces affects the nature of organizations today, which can be
classified into four areas:

1. People: People make up the internal social system of the
organization. That system consists of individuals and groups;
large groups as well as small groups. There are unofficial,
informal groups, as well as more official and formal groups.

2. Structure: Structure defines the formal relationship and use of
people in organizations. There are Managers and Employees,
Accountants and Assemblers. These people have to be related in
some structural way so that their work can be effectively
coordinated.

3. Technology: Technology provides the resources with which
people work and affects the tasks that they perform. The
technology used has a significant influence on working
relationships.
It has costs as well as benefits.

4. Environment: All organizations operate within an internal and
an external environment. It is part of a larger system that contains
many other elements, such as government, the family and other
organizations. It influences the attitude of people, affects working
conditions, and provides competition for resources and power. It
must be considered in the study of human behavior in organization.



Q.4: “Organization exists to serve people, rather than people
existing to serve organizations” : People make up the internal
social system of the organization. That system consists of
individuals and groups; large groups as well as small groups.
There are unofficial, informal groups, as well as more official
and formal groups.

So, we must remember that, “Organization exists to serve people,
rather than people existing to serve organizations”.



Q.5: Fundamental concepts of Organizational Behavior:
Organizational Behavior starts with a set of fundamental concepts
revolving around the nature of people and organizations. Such
concept consists of two main elements:

1. THE NATURE OF PEOPLE:
 Individual Differences: The idea of individual differences comes
originally from Psychology. The belief that each person is different
from all others is typically called the Law of Individual
Differences.

 Perception: Even when presented with the same object, two
people may view it in two different ways. Their view of their
objective environment is filtered by Perception.

 A whole person: Although some organizations may wish they
could employ only a person’s skill or brain, they actually employ a
whole person rather than certain characteristics.

 Motivated Behavior: This fact leaves management with two
basic ways to motivate people. It can show them how certain action
will increase their need fulfillment, or it can threaten decreased
need fulfillment if they follow an undesirable course of action.

 Desire for Involvement: Many employees are contributing their
talents and ideas to the organization’s success. Organizations
need to provide opportunities for meaningful involvement.

 Value of the Person: People deserve to be treated differently
from other factors of production because they are of a higher order
in the universe and want to be treated with caring, respect, dignity.

2. THE NATURE OF ORGANIZATIONS:
 Social Systems: Two types of Social Systems exist side by side
in organizations. One is the formal (official) social system, and th
other is the informal social system

 Mutual Interest: Organizations need people and people need
organizations. They are formed and maintained on the basis of
some mutuality of interest among their participants. Managers
need employees to help them reach organizational objectives;
people need organizations to help them reach individual
objectives.

 Ethics: In order to attract and retain valuable employees in an
era in which good workers are constantly recruited away, ethical
treatment is necessary.

When the organization’s goals and actions are ethical, mutuality
creates a triple reward system in which individual, organizational,
and social objectives are all met.


Fundamental concepts of Organizational Behavior
The Nature of People The Nature of Organizations
 Individual differences  Social system
 Perception  Mutual interest
 A whole person  Ethics
 Motivated behavior
 Desire for involvement
 Value of the persons




Q.6: Models of Organizational Behavior:

















Q.7:, Q.8:, Q.9: CONCEPTUAL QUESTIONS



Q.10: Motivation: Motivation is the processes that account for an
individual’s intensity, direction, and persistence of effort toward
attaining a goal.

Three Key Elements of Motivation are:

(1) Intensity: how hard a person tries
(2) Direction: toward beneficial goal
(3) Persistence: how long a person tries.




Q.11: Process of Motivation: The Motivation Process is shown
below:


Unsatisfied Need Tension Effort Satisfied Need Tension reduction





 Intensity

 Direction

 Persistence





Q.12: What is Need? Types of Need

Defining “Need”: Defining and determining need is easier said
than done. It is not value-free, as who determines it, how it is
determined and for what purpose it is done, will all affect the
outcome.

Types of “Need”: Bradshaw (1972) has provided a methodology
in making a ‘real’ need possible. His framework involves four
different ways of thinking about ‘need’:


(1) Normative Need
(2) Felt Need
(3) Expressed Need
(4) Comparative Need.




Q.13: Explain Motivational Drives: Motivational drives are a
product of the cultural environment:

•Family
•School
•Church
•Books.

McClelland focused on the three Motivational Drives for:


(1) Achievement
(2) Affiliation
(3) Power.


(1) Achievement Motivation: Achievement motivation drives
humans to strive for excellence by improving on personal and
societal standards of performance. In artificial agents, achievement
motivation has potential roles in focusing agent behavior and
driving the acquisition of competence.


(2) Affiliation Motivation: Affiliation refers to a class of social
interactions that seek contact with formerly unknown or little known
individuals and maintain contact with those individuals in a manner
that both parties experience as satisfying, stimulating and
enriching. The need for affiliation is activated when an individual
comes into contact with another unknown or little known individual.

As with achievement motivation, affiliation motivation is thought to
comprise two contrasting components: hope of affiliation and fear of
rejection. Hope of affiliation prompts us to approach unknown
individuals and get to know them better. Fear of rejection urges
caution and sensitivity in our dealings with strangers.


(3) Power Motivation: Power can be described as a domain-
specific relationship between two individuals, characterized by the
asymmetric distribution of social competence, access to resources
or social status. Power is manifested by unilateral behavioral
control and can occur in a number of different ways. Types of
power include reward power, coercive power, legitimate power,
referent power, expert power and informational power.

As with affiliation, power motivation can be considered with respect
to incentive and probability of success. Power motivated individuals
select high-incentive goals, as achieving these goals gives them
significant control of the resources and reinforces of others.

In addition, risk-taking behavior is necessary both for establishing
boundaries and identifying and exploiting high return situations.



Q.14: Maslow’s Hierarchy of Needs: The best known theory of
motivation was developed by Abraham Maslow. He hypothesized
that within every human being there exists a hierarchy of five
needs. These needs are:

1. Physiological needs: It includes hunger, thirst, shelter, sex

and other bodily needs.

2. Safety needs: It includes security and protection from

physical and emotional harm.

3. Belongingness and Love: It includes affection,

belongingness, acceptance and friendship.

4. Esteem: It includes internal and external factors. Internal

factors such as self-respect, autonomy and achievement.
External factors such as status, recognition and attention.


5. Self-actualization: The drive to become what one is capable

of becoming. It includes growth, achieving one’s potential
self-fulfillment.




































Self-actualization
Personal growth and fulfilment

Esteem needs
Achievement, status, responsibility, reputation

Belongingness and Love needs
Family, affection, relationships, work group, etc.

Safety needs
Protection, security, order, law, limits, stability etc.




Figure: Maslow’s Hierarchy of Need



Biological and Physiological needs
Basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.

Page 2

Q.15: Explain the Herzberg Theory: To better understand
employee attitudes and motivation, Frederick Herzberg
performed studies to determine which factors in an
employee's work environment caused satisfaction or
dissatisfaction. He published his findings in the 1959 book
The Motivation to Work.


The following table presents the top six factors causing
dissatisfaction and the top six factors causing satisfaction, listed in
the order of higher to lower importance.

The two Factors in the Theory:

(1) Hygiene factors are needed to ensure that an employee
does not become dissatisfied. They do not cause higher levels of
motivation, but without them there is dissatisfaction.

(2) Motivation factors are needed in order to motivate an
employee into higher performance. These factors result from
internal generators in employees.







Q.16: Explain the ERG Model: This theory is developed by
Clayton Alderfer. He has reworked on Maslow’s needs hierarchy
theory. Alderfer's contribution to organizational behavior was
dubbed the ERG theory (Existence, Relatedness, and Growth),
and was created to align Maslow's motivation theory more closely
with empirical research.













After the original formulation of Maslow's Hierarchy of Needs,
studies had shown that the middle levels of Maslow's hierarchy
overlap. Alderfer addressed this issue by reducing the number of
levels to three.

The letters ERG represent these three levels of needs:


• Existence: It refers to our concern with basic material
existence motivators.

• Relatedness: It refers to the motivation we have for
maintaining interpersonal relationships.

• Growth: It refers to an intrinsic desire for personal
development.


Like Maslow's model, the ERG motivation is hierarchical, and
creates a pyramid or triangle appearance. Existence needs
motivate at a more fundamental level than relatedness needs,
which, in turn supersedes growth needs.



Q.17: Comparison of the Maslow, Herzberg and Alderfer
models: In the following comparison between Maslow’s Hierarchy
of needs, Herzberg’s Two factor model and Alderfer ERG model is
given below –

1. Maslow and Alderfer focus on the internal
needs of that employee, whereas Herzberg
also identifies and differentiates the condition
(Job content and Job context) that could be
provided for need satisfaction.


2. Maslow and Herzberg models suggest that in

modern societies many workers have already
satisfied their lower-order needs, so they are
now motivated mainly by higher-order needs
and motivators. Alderfer suggests that the
failure to satisfy relatedness or growth needs
will cause renewed interest in existence needs.






Q.18: Leadership: Leadership is the process of influencing and
supporting others to work enthusiastically toward achieving
objectives. It is a Catalyst that transforms potential into reality.

The 3 important elements in the definition are:

(1) Influence / support
(2) Voluntary effort
(3) Goal achievement.



Q.19: Difference between Management and Leadership:
Leadership





Q.20: Traits of Effective Leader / Difference between effective
leader and ineffective leader: Early research tried to identify the
traits- Physical, intellectual or personality characteristics- that
differed between leaders and nonleaders or between successful or
unsuccessful leaders.

Many corporations today still use the controversial Myers-Briggs
typology indicates personality test. The most important traits are:
A high level of personal drive, The desire to leave, Personal
integrity and Self-confidence.

Cognitive (analytical) ability, business knowledge, charisma,
creativity, flexibility and personal warmth are also frequently
desired.



Q.21: Skills of Leaders: The three broad types of skill leaders
use are: (i) Technical, (ii) Human and (iii) Conceptual. Although,
these skills are interrelated in practice, they can be considered
specially.

1. Technical Skill: Technical skill refers to a person’s knowledge
of ability in any type of process or technique. Examples are the
skills learnt by Accountants, Engineers, Word processing operators
etc. Technical skill is the distinguishing feature of job performance
at the operating and professional levels.

2. Human Skill: Human Skill is the ability to work effectively with
people and to build team work. No leader at any organization level
escapes the requirement for effective human skill.

3. Conceptual Skill: Conceptual Skill is the ability to think in terms
of models, frameworks and broad relationships, such as long-range
plans. It becomes increasingly important in higher managerial jobs.
Conceptual skills deals with ideas, whereas human skill
concerns people and technical skill involves things.



Q.22: Style of Leadership: The total pattern of the explicit and
implicit leader’s actions as seen by employees is called Leadership
Style. Leadership Style is a consistent combination of: (i)
Philosophy, (ii) Skills, (iii) Traits, (iv) Attitudes, (v) Beliefs about
subordinates’ abilities.

Employee perceptions of leadership style are all that really matters.

Two basic elements of Leadership Style are:

1. Positive and Negative Leaders:
There are differences in the ways leaders approach people to
motivate them. If the approach emphasizes rewards- economic or
the leader uses positive leadership.

If emphasis is placed on penalties, the leader is applying negative
leadership. Negative leaders act domineering and superior with
people.

2. Autocratic, Consultative and Participative Leaders:

Autocratic Leaders: Autocratic Leaders centralizes power and
decision making in themselves. The Leaders take full authority and
assume full responsibility.

Consultative Leaders: Consultative Leaders approach one or
more employees and ask them for inputs prior to making a
decision. These leaders may then choose to use or ignore the
information and advice received.

Participative Leaders: Participative Leaders clearly decentralize
authority. Participative decisions are not unilateral, as with the
autocrat, because they use inputs from followers and participation
by them.


Q. 23: The Managerial Grid Theory of Leadership: Blake and
Mouton proposed a managerial grid based on the styles of
“concern for people” and “concern for production” which is
known as The Managerial Grid Theory of Leadership.

• The grid has 9 possible positions along each axis, creating
81 different positions.

• The grid shows the dominating factors in a leader’s thinking
in regard to getting results.

• Based on the findings of Blake and Mouton, managers were
found to perform best under a 9, 9 style, as contrasted, for
example, with a 9, 1 (authority type) or 1, 9 (lassiez-faire type)
style.
Unfortunately, the grid offers a better framework for conceptualizing
leadership style than for presenting any tangible new information.

























Figure: The Managerial Grid



Q.24: Employee Attitude and types:

Employee Attitude: Attitudes are the feelings and beliefs that
largely determine how employees will perceive their environment,
commit themselves to intended actions, and ultimately believe.

Types of Employee Attitudes: There are mainly two types of
Employee Attitudes:

1. Attitudes affect perceptions:

•Perceptions affect attitudes

2. Employee predispositions:

•Positive affectivity
•Negative affectivity.




Q.25: Components of Employee Attitude: Employee Attitudes
consist of three elements:
1. Cognitive component
2. Affective component
3. Behavioral component.



Q.26: Effects of Employee Attitudes on performance:
Employee Attitudes are visible in two ways:

1. Dissatisfaction: Dissatisfied employees engage in:

•Psychological withdrawal
•Physical withdrawal
•Aggression.


2. Satisfaction: Satisfied employees:

•Go beyond the call of duty
•Have good work records
•Actively pursue excellence.




Q.27: Relationship of Job Satisfaction to Turnover and
Absences:

High


Turnover



Absence




Low
Low High



Figure: Relationship of Job Satisfaction to Turnover and Absences

Leading to Dissatisfaction Leading to Satisfaction

 Company policy
 Supervision
 Relationship

w/Boss

 Work conditions
 Salary
 Relationship

w/Peers

 Achievement
 Recognition
 Work itself
 Responsibility
 Advancement
 Growth

Manager Leader
Seeking Seeks for Objectives Seeks for Vision

Operation Manager admintrts. Leader innovates
Strategy Manager maintains Leader develops
Focus Systems & Structure People

Dependence Relies on control Inspires trust
View Short-range view Long-range persp.

Direction Plans and budgets Creates strategy
Alignment Creates boundaries Reduces them

Relationship Acts as Boss Acts as Coach
Outcome Maintains ability Creates change

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