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Tag: Organisational Behaviour (OB) & Human Resource Management (HRM)

  • UGC NET MBA Unit-2

    Organisational Behaviour (OB) & Human Resource Management (HRM)

    1. Organisational Behaviour – Concept and Significance

    Definition:
    Organisational Behaviour (OB) is the study of how individuals and groups behave within an organization, and how this behavior affects organizational performance.

    According to Stephen Robbins:
    “OB is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving organizational effectiveness.”

    Significance:

    1. Improves managerial effectiveness.

    2. Enhances motivation and productivity.

    3. Promotes teamwork and cooperation.

    4. Reduces absenteeism and turnover.

    5. Encourages innovation and leadership.

    OB is interdisciplinary: draws from psychology, sociology, anthropology, and political science.

    2. Theories of Organisational Behaviour

    (A) Classical Theories

    • Focused on structure, efficiency, and rationality.

    • Example: Scientific Management (Taylor), Administrative Theory (Fayol), Bureaucracy (Weber).

    (B) Neo-Classical Theories

    • Emphasized human relations and motivation.

    • Example: Elton Mayo’s Hawthorne Studies, Maslow’s Human Needs, McGregor’s Theory X and Y.

    (C) Modern Theories

    • Focused on systems, contingency, and behavioral science.

    • Example: Systems Theory, Contingency Theory, Socio-Technical Systems Theory.

    3. Individual Behaviour

    Individual behaviour is determined by biological, psychological, and environmental factors.

    Key Determinants:

    1. Personality

    2. Perception

    3. Values

    4. Attitude

    5. Learning

    6. Motivation

    Let’s understand each briefly 👇

    (a) Personality

    • Meaning: Personality refers to the sum total of ways in which an individual reacts to and interacts with others.

    • Determinants: Heredity, Environment, and Situation.

    • Theories of Personality:

      • Type Theory (Carl Jung, Sheldon): Classifies people as introverts/extroverts.

      • Trait Theory (Allport, Cattell): Focuses on enduring characteristics.

      • Big Five Model:

        1. Openness to Experience

        2. Conscientiousness

        3. Extraversion

        4. Agreeableness

        5. Neuroticism (Emotional stability)

    (b) Perception

    • Definition: Process by which individuals interpret and organize sensory impressions to give meaning to their environment.

    • Perceptual Process:
      Stimulus → Selection → Organization → Interpretation → Response

    • Errors in Perception:

      • Halo effect

      • Stereotyping

      • Selective perception

      • Attribution error

    (c) Values

    • Enduring beliefs about what is right or wrong.

    • Types:

      • Terminal Values: Desired end-states (e.g., happiness, success).

      • Instrumental Values: Modes of behavior (e.g., honesty, responsibility).

    (d) Attitude

    • A learned predisposition to respond positively or negatively toward an object or person.

    • Components:

      1. Cognitive (belief)

      2. Affective (feeling)

      3. Behavioural (action)

    • Theory: Festinger’s Cognitive Dissonance Theory — inconsistency between beliefs and behavior causes tension.

    (e) Learning

    • A relatively permanent change in behavior due to experience.

    • Theories of Learning:

      1. Classical Conditioning (Pavlov): Learning by association.

      2. Operant Conditioning (Skinner): Learning through rewards/punishments.

      3. Social Learning (Bandura): Learning through observation and imitation.

    (f) Motivation

    • The process of stimulating people to take action to accomplish goals.

    Major Theories:

    Type Theory Proponent Key Idea
    Need-based Hierarchy of Needs Maslow 5 levels – Physiological → Safety → Social → Esteem → Self-Actualization
    ERG Theory Alderfer

    Existence, Relatedness, Growth

    Two-Factor Theory

    		 Herzberg Hygiene vs Motivators
    Process-based

    Expectancy Theory

    		 Vroom Motivation = Expectancy × Instrumentality × Valence

    Equity Theory

    		 Adams Fairness in input-output ratio

    Goal-Setting Theory

    		 Locke Specific, challenging goals improve performance

    4. Group Behaviour

    A group is two or more people interacting interdependently to achieve common goals.

    Types of Groups:

    1. Formal Groups: Created by organization (committees, teams).

    2. Informal Groups: Socially formed (friendship, interest groups).

    Group Dynamics:

    • How group members interact and influence each other.

    • Stages (Tuckman’s Model):

      1. Forming

      2. Storming

      3. Norming

      4. Performing

      5. Adjourning

    Team Building:

    • The process of improving group effectiveness through trust, communication, and collaboration.

    Effective Team Characteristics:

    • Clear goals

    • Open communication

    • Mutual trust

    • Defined roles

    • Participative leadership

    Leadership:

    Leadership is the ability to influence others to achieve goals.

    Theories of Leadership:

    Approach Description
    Trait Theory Leaders are born, not made (traits like confidence, intelligence).
    Behavioral Theory

    Leadership depends on leader’s behavior (Ohio & Michigan studies).
    Situational Theory (Fiedler, Hersey-Blanchard)

    Leadership style depends on situation or maturity of followers.
    Transformational Leadership (Burns, Bass)

    Inspires followers to transcend self-interest for organizational goals.
    Transactional Leadership Based on exchange – rewards for performance.

    5. Interpersonal Behaviour & Transactional Analysis

    Interpersonal Behaviour:
    Mutual actions and communication between individuals in an organization.

    Transactional Analysis (Eric Berne):
    A method for understanding interpersonal communication.

    Ego States:

    1. Parent: Authoritative or nurturing.

    2. Adult: Rational and logical.

    3. Child: Emotional, spontaneous.

    Types of Transactions:

    • Complementary: Matching ego states → smooth communication.

    • Crossed: Ego mismatch → conflict.

    • Ulterior: Hidden motives → manipulation.

    6. Organizational Culture and Climate

    Organizational Culture:
    Shared values, beliefs, and practices that shape behavior in an organization.

    Types (Charles Handy):

    1. Power Culture – centralized authority.

    2. Role Culture – defined hierarchy and roles.

    3. Task Culture – team and project-based.

    4. Person Culture – individual-oriented.

    Organizational Climate:
    The perception of the work environment by employees (e.g., friendly, innovative, rigid).

    Difference:
    Culture = Deep-rooted values; Climate = Surface-level perceptions.

    7. Workforce Diversity & Cross-Cultural Behaviour

    Workforce Diversity:
    Differences in employees based on gender, age, ethnicity, nationality, and background.

    Benefits:

    • Innovation and creativity

    • Global competitiveness

    • Broader talent base

    Challenges:

    • Communication barriers

    • Stereotyping and prejudice

    Cross-Cultural OB:
    Understanding how culture influences behavior (important in MNCs).

    Model:
    Hofstede’s Cultural Dimensions:

    1. Power Distance

    2. Individualism vs Collectivism

    3. Masculinity vs Femininity

    4. Uncertainty Avoidance

    5. Long-term Orientation

    6. Indulgence vs Restraint

    8. Emotions and Stress Management

    Emotions:
    Intense feelings directed toward someone or something.

    Emotional Intelligence (EI):
    Ability to understand and manage one’s own and others’ emotions.
    Proponent: Daniel Goleman.
    Components:

    1. Self-awareness

    2. Self-regulation

    3. Motivation

    4. Empathy

    5. Social skills

    Stress:
    A state of physical or mental tension caused by perceived challenges.

    Types:

    • Eustress: Positive stress (motivating).

    • Distress: Negative stress (harmful).

    Management Techniques:

    • Time management

    • Relaxation and meditation

    • Support groups

    • Counselling

    • Organizational support programs

    9. Organisational Justice and Whistle Blowing

    Organisational Justice:
    Employee perception of fairness in workplace decisions.

    Types:

    1. Distributive Justice: Fairness in outcomes (pay, rewards).

    2. Procedural Justice: Fairness in processes and policies.

    3. Interactional Justice: Respectful treatment and communication.

    Whistle Blowing:
    Revealing unethical or illegal practices within the organization.

    • Internal Whistle-blowing: Reporting within the organization.

    • External Whistle-blowing: Reporting to outside agencies.

    • Protected under the Whistle Blowers Protection Act (2014) in India.

    10. Human Resource Management (HRM)

    Concept:
    HRM involves planning, organizing, directing, and controlling the procurement, development, compensation, and maintenance of human resources.

    Objectives:

    1. Effective utilization of human talent.

    2. Employee motivation and satisfaction.

    3. Organizational growth and harmony.

    Functions:

    1. Managerial Functions: Planning, Organizing, Directing, Controlling.

    2. Operative Functions: Procurement, Development, Compensation, Integration, Maintenance.

    Perspectives of HRM

    • Hard HRM: Focus on quantitative, business needs, control, and cost reduction.

    • Soft HRM: Focus on people, development, and motivation.

    Influences on HRM:

    • Legal framework, globalization, technology, workforce demographics, culture.

    Recent Trends in HRM

    • Talent management

    • E-HRM and HR analytics

    • Flexible working & gig workforce

    • Diversity & inclusion

    • Employer branding

    • Strategic HRM

    11. Human Resource Planning (HRP)

    Definition:
    HRP ensures the right number of people with the right skills are available at the right time.

    Process:

    1. Assess current HR inventory

    2. Forecast future HR needs

    3. Analyze gaps

    4. Develop HR strategies

    5. Monitor and evaluate

    12. Recruitment and Selection

    Recruitment: Process of attracting potential candidates.
    Sources:

    • Internal (promotion, transfers)

    • External (advertisements, job portals, campus recruitment)

    Selection: Choosing the most suitable candidate.
    Steps: Application → Tests → Interviews → Reference check → Medical exam → Job offer.

    Induction (Orientation): Introducing the new employee to the organization’s culture and values.

    13. Training and Development

    Training: Short-term process to improve skills for current job.
    Development: Long-term process for managerial growth.

    Methods:

    • On-the-job: Coaching, job rotation, apprenticeship.

    • Off-the-job: Lectures, case study, simulation, workshops.

    Evaluation: Kirkpatrick’s 4 levels – Reaction, Learning, Behavior, Results.

    14. Job Analysis, Evaluation, and Compensation

    Job Analysis: Systematic study of job contents and requirements.
    → Outputs: Job Description + Job Specification.

    Job Evaluation: Determining relative worth of jobs to establish fair pay.
    Methods:

    1. Ranking

    2. Classification

    3. Point system

    4. Factor comparison

    Compensation Management:
    Designing and managing pay structures and benefits to reward employees fairly.

    Components:

    • Basic Pay

    • Incentives

    • Fringe Benefits

    • Perks

    • Non-monetary Rewards