Organisation

Behaviour

Definition and Meaning:

Organisational Behaviour is concerned with the
study of the behaviour of people working in an
organization. It involves the understanding,
predicting and controlling of human behaviour and
the factors which influence the performance of these
people.
Fred Luthans
Organisation is the study of the organizational
components and their impact on human behaviour
and oranisational performances. Such study can be
benefited from various behavioural nad social
sciences.
S.P.Robbins

Features of OB OB is the study of human behaviour.

Study of behaviour in an oraganisation.
Knowledge would be useful in improving
an oraganisations effectiveness.
For exp. When we talk about caring
oranisation we actually caring about the
philosophy, attitude and action of top
managers.

Characteristics of OB:

Action and goal oriented discipline.

Science as well as art.
Multidisciplinary Integrated approach.
Its a human tool for human benefits.
Three levels of analysis- Individual, group and
organization behaviour.
Wholistic concept of whole system.
Mutual interest of people and organization. Individuals
view organization as a means to achieve their goals
while at the same time organization wish that
individuals must work towards the achievement of
organizational goal.

Essential elements of OB:

The study of OB involves consideration of
interaction among the formal structure, the
task to be undertaken, the technology
employed and the methods of carrying out
work, the behaviour of people, the process
of management and the external
environment.

Essential elements of OB
People-individual &
group

Organisations
Structure

Ext Environment

Technology

 People- Individual: The individual is the central theme of

OB
Group: Groups exists in organization can be small and
large, official and informal. They are dynamics in
nature.OB studies the groups in organization.
Organisation Structure: Every organisation has an
structure aims to establish the relation between people
and organization. People play different roles in
organization and they have different relation with each
other.OB is the study of these relations.
Environment: External environment affects the
organization through developments, political activities,
social and cultural influences and governmental actions.
Technology: Technological changes influences the work
and working conditions. It affects the behaviour of people
in organization.

Scope of OB:
It includes the effects of organization on human being and of human beings on
organizations. It includes three levels these are-Individual, Group and
Organisation.
Individual process Learning
Perception
Motivation
Personality
Group process Leadership
Communication
Attitude
Group Behaviour
Organisational Process Organizational structure
OD
Organisational theories
Rewards

Contribution of other sciences to

OB:
Psychology Personality
Perception
Attitude
Learning
Motivation
Job Satisfaction

Sociology Group Dynamics

Communication
Leadership
Conflict
Power and Politics
Organisation Structure
Formal and Informal Organization
Anthropology Individual Culture
Organisational Culture
Organisational Environment
Climate

IMPORTANCE OF OB:

OB helps an individual understand himself and

others better.
Helps to maintain cordial relation in the
organization. OB helps to understand the
reasons of poor industrial relations and take
step to improve relations.
The job of a manager is to get things done
through others. OB helps the manager to
understand the basis of motivation and the step
to motivate the subordinates.
OB helps to fulfill both employees and
organisation need.

 OB suggest the approaches to create

organizational climate in totally rather than
merely improving the psychological conditions.
Helps to create the atmosphere of mutual trust
and the sense of accomplishment.
OB helps improving communication in
organization. To achieve organizational
effectiveness the communication must be
effective.
OB offers the career opportunity in the
management as a profession.
Understanding human behaviour could yield the
understanding of market scenario. The
understanding of consumer behaviour helps to
grow the business.

Concepts of OB:

Concepts related with nature of man:

Individual differences- OB is based on the assumption that

individual differ in intelligence, aptitude,attitude,personality,
skill etc. Which helps organization in selection and placement
of right people for various jobs.
Whole person- The person comes to the work place as a
complete person, he has his background, emotions,
sentiments which can not be separated from the skills he is
used on the job. So OB studies the whole person for using his
skills in best way.
Causation of Human behaviour- human behaviour is caused
by needs which can be directed and controlled in order to get
the desired results from human being.
Human Dignity- A Person has mind to think and heart to feel.
He has emotions which should be respected by the
organization for better achievements.

 Concepts relating to Nature of

Organisation:
Social System- Organisation is a social
system which co-ordinates the activities of its
members for the achievement of common
goals. OB is dynamics in nature as groups are
there in organization.

Mutual Interest- Mutual interest is defined

that organizations need people and
people need organizations

Motivation:
It is an inner striving condition which activate or moves individual into
action and continues him in the course of action enthusiastically.
Each person is uniquely different and complex entity. What motivates
one person may not motivate the other.
Rensis Likert has defined motivation as the core of management.
Motivation is an important function performed by manager for
actuating the people to work for the accomplishment of organizational
objectives.
Work motivation is a set of energetic forces that originate both within as
well as beyond an individuals being to initiate work-related behaviour,
and to determine its form, direction, intensity, and duration.
Motivation is something that moves the person to action, and continues
him in the course of action already initiated.
Dubin
Motivation is the process of attempting to influence other to do your will
through the possibility of gain or rewards.
Fllippo

Functions of motivation:
Proper utilization of HR
Willingness to work leading to greater job satisfaction.
An effective instrument.
Good human relations.
Lower turnover and absenteeism.
Better public image.
Lesser grievances
The incentives activate the motives. Incentive is the mean to motivation.
Need is the starting point of motivation. An unsatisfied need creates tension that stimulate
drive within the individual.
Need------- Tension------Search-----Performance------Reward
Need Satisfaction
These motives or needs can be Primary and SecondaryPrimary-These are basic need as food, water, sleep, clothing etc.
Secondary- These are related to mind and spirit, rather than physiological these are
psychological needs as self-esteem, recognition, belongingness etc.

Models of Motivation or Motivation

Theories
1. McGregors Participation Model.
2. Maslows Need Hierarchy Model.
3. Herzbergs Motivation-Hygiene Model.

McGregors Participation ModelDouglas Macgregor put forward 2 sets of assumptions about human being
which he thought were implied by the actions of autocratic and permissive
managers. The first set of assumptions is contained in Theory X and
second set of assumptions in Theory Y. These sets were not based on any
research.
Theory X- It believes that autocratic managers often make the following
assumption about their subordinates. According to this theory managers
think that their subordinates generally have these characteristics People have an inherent dislike for work and generally avoid it.
They are lazy by nature and avoid responsibility.
They prefer to be directed, have relatively little ambition and wants security
above all.
These average human being indifferent to organizational goals.
According to this theory management has to offer reward and punishment to
the workers to make the productive and motivate them to do their job. This
is called carrot and stick approach to motivation. It suggests the autocratic
style for leadership. People who come under this theory, their physiological
and security needs satisfaction are the ways to motivate them.

Theory Y- People whose social, esteem and self actualization needs

are becoming important, for them theory Y will be applicable.
According to the assumptions of this theory people are in generalDoes not inherently dislike the work. Depending upon conditions,
work may be source of satisfaction or a source of punishment.
These human beings will exercise self-direction and self-control in
the service of objectives to which he is committed.
They learn under proper conditions, not only to accept but also to
seek responsibility.
Commitment to the objectives is a function of the rewards
associated with their achievements.
They have capacity to exercise high degree of imagination and
creativity to solve the organizational issues.
The basic problem of any organization is to secure the commitment
from the workers to organizational goals. That is directly related to
the satisfaction of their needs. This theory does not rely on the use
of authority as an instrument of command and control. According to
this theory employees could be motivated by delegating authority,
job enlargement, empowerment.

Theory Z- It is given by William Ouchi which focuses on

Japanese style of management.
Strong bond between organization and employees.
Group participation.
Mutual interest.
Non- hierarchical organization structure.
Human resource development.
Application of theory X and theory Y- Practically no man
would belong completely to either theory X or theory Y.
These theories are the best tool to understand human
behaviour and to design the program to motivate the
employees. Theory X is more applicable on unskilled
employees whose basic needs are more important for
them. And theory Y is applicable on the higher level
skilled employees who understand their responsibility
and are self controlled. Thus management can use the
amalgamation of both the theories to motivate the
employees.

Maslows Need Hierarchy Model

Maslow developed a theoretical framework
for understanding human motivation.
According to him, persons effectiveness is
a function of matching mans opportunity
with the appropriate position of hierarchy
of needs. Process of motivation begins
with the assumption that behaviour s
directed towards the satisfaction of needs.
He has given a hierarchy of needs.
Hierarchy is as-

Basic physiological needs- these are related with the survival and
maintenance of human life. These needs includes such things as
food, clothing, air, water and other necessaries of life which are
biological in nature. These are primary needs.
Safety and Security needs- After satisfying the physiological
needs, people want the assurance of maintaining a given
economics level. They want job security, personal bodily security,
security of source of income, provision for old age, insurance
against risks etc.
Social needs- man is a social animal. He is therefore, interested
in conversation, sociability, exchange of feelings and grievances,
companionship, recognition, belongingness etc.
Esteem and status needs- These needs include self-confidence,
independence, achievements, competence, knowledge and
success. These needs boost the ego of individual. They are also
known as egoistic needs. They are concerned with prestige and
status of the individual.
Self-Actualization or Self- Fulfillment- The final step in this
hierarchy of needs model is self- fulfillment need or the need to
fulfill what a person consider to be his mission in life.

Herzbergs Motivation-Hygiene
ModelA significant development in motivation was distinction between
motivational and maintenance factors in job situation.
A research was conducted by Herzberg based on interview of 200
engineers and accountants who worked for eleven different
companies in Pittsburgh. That helped to conclude to draw a
distinction between what are called as motivators and
Hygiene Factors.
Thus Hygiene factors provide no motivation to the employees, but
the absence of these serves as dissatisfier.
Hygiene factors can be called maintenance factors in job because
these are necessary to maintain a reasonable level of
satisfaction among the employees.
Another set of conditions helps to build strong motivation and
high job satisfaction. These conditions are motivational
factors.
Herzberg has given 6 Motivational Factors and 10 Hygiene Factors

Hygiene Factors

Company policy and administration

Technical supervision
Inter-personal relations with supervisors
Inter-personal relations with peers
Inter-personal relations with subordinates
Salary
Job security
Personal Life
Working conditions
Status.

Motivational Factors

Achievement

Recognition

Advancement

Work itself

Possibility of Growth

Responsibility
Hygiene factors include such things as wages, fringe
benefits, physical conditions of work etc. On the other
hand Motivational Factors are essential for increasing
the productivity.
Herzberg also said that to-days motivational factors can be
tomorrows Hygiene factors. It should also be noted
that ones hygiene may be motivators for others.

Morale Morale is a fundamental psychological concept. Its can

be defined as the attitude towards work for the
accomplishment of organization goals.
Its a Co-operative attitude or mental health of number of
people who are related to each other on some basis.
Morale is the capacity of a group of people to pull
together persistently in pursuit of a common purpose.
Morale is a degree of enthusiasm and willingness with
which the member of group pull together to achieve
group goals.
High morale needs not to be associated with high
productivity. High morale may be associated with low
productivity and low morale with high productivity.

Nature of Morale Generally morale is used to describe an overall climate

prevailing among the members of a group. It is not an
absolute concept which can convey a specific meaning. It
is a relative concept, we can only refer to the degrees of
morale. Morale is dynamic in nature. Managers can not
establish high morale once and can forget about it for
months and years. Building it is a continuous effort.
It represents the collective attitude of workers. High
morale represents attitude of satisfaction with the desire
to continue in the group and willingness to strive for the
achievement of group goals.
Morale is multidimensional in nature in the sense that it is
a complex mixture of several elements.

Significance of moral Its an important part of organizational climate. It is a vital

element of success bcoz it reflects the attitude of
members towards organization.
Morale is a total satisfaction a person derives from his
job, his work group, his boss, his organization and his
environment.
High morale exists when his attitude is favourable
towards his job and other things. Low morale exists
when attitude inhibits the willingness to attain the
objectives of organization.
A state of high morale reduces labour turnover, waste
and disharmony

Morale of employee must be kept

high to attain the following benefits
Willing cooperation towards the
organizational objectives.
Loyalty to the organization and its
leadership.
Good discipline.
High degree of employees interest in their
job.
Pride in the organization.
Reduction in rate of labour turnover.

RELATION BETWEEN MORALE

AND PRODUCTIVITY
HIGH MORALE HIGH MORALE
LOW PRODUCTIVITY
HIGH PRODUCTIVITY

LOW PRODUCTIVITY
HIGH PRODUCTIVITY
LOW MORALE LOW MORALE

Four combinations of morale and

productivity

high morale and high productivity

high morale and low productivity
low morale and low productivity
low morale and high productivity
First one is the ideal state and make the
best possible use of human resources.

Suggestions to building high

morale

two way communication

incentive system
welfare measures
social activities
training
workers participation

GROUP DYNAMICS

The social process by which people interact face to face in

small groups is called group dynamics.
What is groupA group consists two or more persons who interact with each
other, consciously for the achievement of certain common
objectives.
The members of group are interdependent and are aware that
they are part of a group. They influence and influenced by each
other.
Groups are social settings that offer a variety of information,
expectation and opportunities that relate to individual need
satisfaction.
A group is a set of two or more people who are jointly
characterized by a network of relevant communications, a
shared sense of collective identity and one or more shared
dispositions with associated normative strength.

Conditions for being a group

people must interact with each other

psychologically aware of one another
should perceive themselves as a group
Common objective or task
Agreed values and norms

Group process
Given by Tuckman in 1960 Forming ---Storming---Norming-Performing--Adjourning

Characteristics of Groups
Leadership- in a group there will be a leader
formally selected or informally emergent.
Activities- they perform certain activities. Eg.
Watching a movie together. Group must be
active but not necessarily all members will be
active.
Norms- Norms are accepted standards of
behaviour within a group shared by all members.
there are certain norms in every group that
present its culture or ethics. By these norms it
has the recognition in society. These are fixed by
group members

 Cohesiveness- people come together to satisfy their

need. The more needs it satisfies, the more group
attracts the members. This attraction called
cohesiveness. Members are highly attached to each
other and are attracted towards each other.
Interaction- a very common characteristics of a
group is mutual interaction between members of a
group.
Communication- Some communication must be
there in a group may be oral or by gestures or by
nodding the head.
Task- people come together to achieve certain goal
or to perform certain task is given to them.
Size- group has a size which can be large or small.
Conformity- conformity is adjusting ones behaviour
to align with norms of the group. There must be
conformity between individuals and group goals

THEORIES OF GROUP
FORMATION

Propinquity theory
Homans theory
Balance theory
Exchange theory

Propinquity Theory

Individuals affiliate with each other bcos of the

geographical proximity. In an organization
employees who works in a same area or
departments would more probably forms into
groups than those who are not physically
located together. This theory explain a basic
factor that is proximity of people at workplace
which leads to formation of groups.
However it is not necessary that group must
come up bcos of proximity of people at
workplace only. There are several other
reasons of group formation.

Homans Theory

According to George C. Homan the

more activities persons share, the more
numerous will be there interactions and
the stronger will be there shared
activities and sentiments, and the more
sentiments persons have for one another
the more will be there shared activities
and interactions.

 Interaction Theory of Group Formation

Activities

Interactions

Sentiments

Balance Theory

this theory is proposed by Theodare

Newcomb. He says persons are attracted to
one another on the basis of similar attitude
towards commonly relevant objects and goals.
Once a relationship is formed, it strives to
maintain a systematic balance between the
attraction and the common attitude. If an
imbalance occurs, attempts are made to
restore the balance. If the balance can not be
restored, the relationship dissolves.

 Mr. A

Mr. B

C
Common attitudes
{Authority, work, lifestyle, religion, politics etc.}

Exchange Theory this theory is based on reward- cost outcomes of

interactions. To be attracted towards a
group, a person thinks in terms of what he will
get in exchange of interaction with the group
members. A minimum positive level (rewards
greater than cost) of an outcome must exist in
order for affiliation to take place. Rewards from
interaction gratify need and costs are frustration,
embarrassment, or fatigue. All other theories
have role in exchange theory

Types of Groups
Formal groups
Informal groups
Command and task groups(committees)

Interest and friendship groups

Group Think When too much cohesiveness is dangerous.

Some time bcos of high cohesiveness the
members become more concerned about
maintaining positive group spirit than about
making the most realistic decisions- this
phenomenon known as group think. When
members become fiercely loyal to each other
they may ignore the potential use of information
from other sources that challenges the groups
decisions. Then group decisions can be
completely uninformed, irrational or even
immoral

To remove this

Use open communication

Use sub groups
Admit short comings
Hold second chance meetings

Teams:

Team and team work have emerged popular terms in management circles these
days. The team approach to managing organizations is having a diverse and
substantial impact on organisations and individuals. In IT companies teams are client
or project based.
Teams are small number of people with complementary skills who are committed to a
common purpose, common performance goals, and an approach for which they hold
themselves mutually accountable.
Number should be small, if more people will be involved, there will be difficulty in
interaction and influencing each other.
A team comes together to pursue a goal, unlike groups, in which members report to
the same supervisor or work in the same department.
The team hold themselves mutually accountable for results, rather than merely
meeting a managers demand for results.

Features

They are empowered to share various management and leadership

functions
They plan control and improve their own work process
They set their own goals and inspect their own work
They often create their own schedules and review their performance
They are frequently responsible for acquiring any new training they might
need
They take responsibility of quality of their product
Teams are also known as empowered teams, self directed teams and self
managed teams etc.

Benefits from teams

Enhanced performance- can come in many forms as

Increased productivity, improved quality and improved customer services. It enable
worker to avoid wasted effort, reduced errors, and respond better to customer.
Employees get benefited from teams as they can improve their quality of work life
and reduced stress.
It helps organization to get better quality decisions
It results in improved processes bcos of the coordination and transfer of learning
among team members.
Team work contributes to global competitiveness to the firm.
Organizational development is certain to result of teams.
Innovative and creative ideas to solve problems

Types of teams
Work teams
Problem solving teams
Management teams

Virtual teams

Guidelines to enhance team

performance
Have a small team- of max 12 members.
Members should have at least three types of skillstechnical skills, problem solving and decision making
skills, interpersonal skills.
Let the teams have specific goals and develop
commitment.
Have proper leadership and structure for teams.
Establish appropriate performance evaluation.
Create a sense of urgency in first meeting.
Set clear rule of behaviour.
Regularly challenge the teams with new projects r
problem to solve

CONFLICTS
Conflicts occur at different levels within the
individuals, between the individuals, in a group
and between groups. A manager has to
experience the most uncomfortable moments
when he has to deal with conflicts or differences
among people or groups of people at work.
The term conflict is used by different people to
convey different meanings.
Conflict in mind conveys that the individual is in
a state of dilemma over a certain issue and is not
able to arrive at any decision.

 The term conflicting views means

differences of opinions between two or
more persons.
Conflict may broadly be viewed as a
breakdown in the standard mechanism of
decision making.
In simple words conflict is the tension that
is experienced one feels when ones need
or desire is or likely to be thwarted.

In management conflict has the

characteristics
Antecedent condition e.g. scarcity of resources,
policy differences among people.
Effective state of individuals involved, e.g.
stress, tension, anxiety etc.
Cognitive states of individuals, e.g. their
perception of awareness of conflict situations
Changed behaviour ranging from passive
resistance to overt aggression.

Traditional view of conflicts- Harmful and must

be avoided.
Human Relation view- is natural and inevitable
outcomes in any group.
Internationalists view (modern view)- a position
force in a group, absolutely necessary for
performance.

Conflict could be defined as the

appearance of differences, difference of
opinions, of interest, and the fear of
difference is dread of life itself
Follett

Nature of conflicts
Conflict between two individuals implies
that they have conflicting perceptions,
values and goals.
Conflict arises when individuals are not
able to choose among the alternative
course of actions.
Conflict is dynamic process and episodic
in nature.
Awareness of conflicts is there in parties

Conflict as a processFive stages are there

Latent conflict- some conditions arise which

develop conflicts as-communication barriers,
role ambiguities etc. these antecedent
conditions start the conflicts first stage.
Perceived conflict- next stage is when parties
start to perceive the situations. May be there is
no latent condition but parties perceive that
conflict is there.
Felt conflict- they feel that there is a conflicts
between two parties. They are aware about
conditions also.

 Manifest conflict- it means the conflictful

behaviour such as- aggression, sabotage,
withdrawal etc.
Conflict aftermath- conflict is genuinely
resolved to the satisfaction of all
participants. If the conflict is merely
suppressed not resolved the latent
conditions can be aggravated and explode
in more serious form until they are
rectified.

Types of Conflicts

Intra-personal or individual conflicts- within an individual himself.

Here can be 2 types of conflicts within a individual.

Role conflict- arises due to so many roles (role overload) one has to
play at a time. Or when a person is not able to satisfy others by his
performance in a particular role. Or he is not aware about his duties in
a particular role.
Goal conflict- can be of 3 types-

Approach- approach conflict- when a person has to choose from

two equally attractive goals
Avoidance -avoidance conflict- when has two alternative each
with negative aspects. For example a person does not like his
present job and alternatives are if he should resign from this job
or search for new job both are equally unattractive for him.
Approach- avoidance conflict- in this type an individual has a
choice which has both positive and negative sides. Ex- person
may be offered promotion but away from his home town.

Inter-personal conflicts or conflicts between

individuals- several factors can be there as
arising some dislike or personality differences,
opinions differences for task related matters
etc.
Important factors for interpersonal conflictsDifference in perceptions
Information differences
Difference in status
Difference in resources
Divergent roles or goals

Inter- groups conflicts or organizational

conflicts- conflicts between groups or task
groups as union Vs management groups,
union Vs other union, one functional area Vs
other functional area etc. such conflicts arise
whenJoint decision making
Difference in goals
Competition for limited resources
Organization reward system
Introduction to change
Nature of communication etc.

Positive aspects of
conflict( constructive conflicts)
The conflicting parties should think conflict as a problem
solving term rather than a win- lose term.
Modern writers feel that minimum level of conflict is
necessary for keeping members alert and creative.
Conflicts are supposed to serve the following functions Release of tension
Creativity
Stimulation of change
Identification of weaknesses
Group cohesiveness
Challenges

Distractive conflicts or dysfunctional

conflicts
The negative consequences of conflicts
are not uncommon. Just as conflict in
individual can destroy his ability to
function, similarly conflict within
organization may result in some sort of
blocks in decision making.
The undesirable consequences are-

Resignation of key personnel- some time conflict can compel to

resign some dynamic personnel. Then the organization will be the
sufferer in the long run by the loss of key personnel.
Tensions- may create high tension among individuals and groups.
Which can create the feeling of anxiety, uncertainty, frustration
among them.
Discontentment- can be a source of dissatisfaction. As result the
productivity will suffer.
Creation of distrust- if one party loses the settlement process it can
create the distrust in their mind for organization and create a
negative approach.
Goal displacement- Conflict may distract the attention of the
members from the organizational goals. They may waste their time
and energy in finding the ways to be winner of the conflicts.
Weakening of organization- conflicts may weaken the organization
as a whole if the management is not able to resolve them properly.
Further, resignation of important personnel due to conflict also
weaken the organization.

Methods for handling conflicts(Conflict Management)

avoidance or repression of conflict

defusion of conflict
containments of conflicts
confrontation
problem solving
conflict stimulation

PERSONALITY
It is derived from Latin word persona which means to
speak through. Persona denotes to the masks worn by
actors in ancient Greece.
Personality of an individual is unique, personal and
major determinants of his behaviour.
Personality defines as what an individual really is, as an
internal something that guides and direct all human
activities.
Personality means how a person affects other and how
he understands and views himself as well as the pattern
of inner and outer measurable traits, and the person
situation interaction.
Fred Luthans

 Personality represents whole person

concept.
It includes perception, learning, motivation
and more.

Determinants of Personality

Biological Factors

Heredity
Brain
Physical features

Family and Social factors

Situational factors
Personal factorsTemperament
Interest
Character
Schema
Motive

Personality theories

Freuds Psychoanalytical theory- this theory is based

on that man is forced more by unseen forces than by
conscious or rational thoughts. He has given three
aspects of human behaviour those are

The Id- this is the source of psychic energy and seeks the
immediate gratification for biological needs. As the person
matures, he learns to control the Id. But even then its a driving
force throughout life and important source of thinking and
behaving.
The Ego- the ego is a conscious or logical part of human
personality and associated with reality principle. Ego is aware
about the real world and external environment. The ego keeps
the id in control through reasons.
The Super- Ego- The super-ego represents the social and
personal norms and serves as ethical constraints on
behaviour. Super ego provides norms to ego to determine
what is wrong or right.

Psychosocial theory of Erikson- Erikson identified 8

stages of life which areInfancy- during first year of life child resolves the basic
crisis of trust or mistrust. If child is cared with love,
learns trust others and if there is lack of love, results
into mistrust.
Early Childhood- in second and third year of life, child
begins to assert the independence. In this stage if the
child gets continuous disapproval from parents it
develops lack of self confidence in him.
Play Age- during four to six years the initiatives plays
an important role in development of personality. The
creativity and imaginative abilities develop in this
stage.
School Age- from age 6 to 12 child learns many skills
and social abilities. If a child experiences a real
progress in this stage, it will develop his sense of
enterprise. The reverse situation will create sense of
inferiority.

 Adolescence- this is the stage of 13 to 19 when child

gains the sense of identity. This is the stage when there
will be rapid biological changes and teenagers try to
establish themselves separate from patents. This is the
stage to prepare them for adulthood crises.
Young Adulthood- at this stage they face the crises of
intimacy or isolation. This stage allows the young adult to
develop deep and lasting relationships.
Adulthood- this is the stage which develop the general
activity or self- absorption. Self- absorbed person never
develop the ability to look beyond himself. General
people see the world as bigger perspective.
Mature Adulthood- this stage develops the sense of
wisdom and perspective that can really guide the
younger generation.

Chris Argyriss Immaturity and maturity theoryhe has given the seven characteristics to
define the immaturity and maturity in
personalities. These areImmaturity Characteristics Passivity
Dependence
Few ways of behaviour
Shallow interests
Short time perspective
Subordinate position
Lack of self awareness

Maturity CharacteristicsActivity
Independence
Diverse behaviour
Deep interests
Long time perspective
Super ordinate position
Self awareness and control
He explained that these seven dimensions
represent only one aspect of the total
personality. Mush also depends on individual
perception, self concepts and adaptation etc.

Personality Traits influencing OB

Locus of Control- this can be of two types- internal locus
of control and external locus of control. Person who
always says that his activities are determined by other is
a person of external locus of control. And who can guide
his activities himself is a person with internal locus of
control. People who are with internal locus of control can
be good leaders.
Authoritarianism- high authoritarian people believe in
holding authorities and have negative views about
people and intellectually rigid. They are more rules and
regulation oriented. They will use autocratic or directive
leadership styles.

 Machiavellianism- it has given by Machiavelli.

He said people with high Machiavellianism
manipulate more, win more and persuaded less.
Introvert and Extrovert- extroversion suggested
as a managerial trait for leaders. Extroverts are
social people and introverts are shy, quiet and
retiring people.
Type A and Type B- people who are highly
competitive and impatient and aggressive are
type A personality and people who are easy
going and non competitive are type B
personalities. People who are aggressive can
not be good team players.

TRANSACTIONAL ANALYSIS
TA is a technique used to help people
better understand their own and others
behaviour, especially in interpersonal
relationship.
TA is given as training to managers to help
them to develop their interpersonal
relation and effectiveness.
Dr. Eric Berne is credited to develop this
TA technique.

Ego States
TA believes that personality of everyone is
made up of three ego states. An ego state
is a pattern of behaviour that a person
develops as he or she grows up, based on
his accumulated network of feelings and
experience.
There are three ego states-

 Parent- state of a person comprises the

judgmental, value laden, rule making and
moralizing component of personality.
Adult- this state is authentic, direct and
reality based, it is rational, fact seeking
and problem solving.
Child- this state is emotional, creative and
impulsive component of personality.

 Three things about ego states are worth

nothing that the conversations often are
the mixture of reactions from all three
states parent, adult and child. And such
ego states have both positive and
negative features. And we can find out the
ego states by observing the tone and
postures of the people when they talk.

Transactions
Transaction is the basic unit of social
interaction. It consists of an exchange of
words and behaviour between two
persons.
There can be of two types of transactions-

 Complementary transaction- when the

communication has the same ego states of
sender and receiver the transaction will be
complementary. Here the line of transaction will
be parallel.
P
P
P
P
A
A
A
A
C
C
C
C
COMPLEMENTARY TRANSACTION

 Non-Complementary transaction- it can be said

crossed transaction also. The response lines
here are not parallel but crossed. For example
the manager wants to deal with the executive as
Adult to Adult basis but the executive responds
on the basis of child to parent. Cross transaction
should be avoided as far as possible.
P
P
P
P
A
A
A
A
C
C
C
C
CROSSED TRANSACTION

LIFE POSITIONS

in the process of growing up people make basic assumption about

their own self and about others in their environment. These are
called life positions.

Four life positions are thereI am OK- You are OK- when people tend to feel positive about
themself and about others also. This is the best position of life. We
can say this is the ideal life position.
I am OK- You are not OK- people tend to watch other closely as
they think that no is trust worthy as they are.
I am not OK- you are OK- they feel that others are more competent
than they are.
I am not OK- you are not OK- people tend to feel bad about
themselves and feel the whole world miserable. They dont trust
others and have no confidence on themselves.

Utility of Transactional Analysis

Its major benefit is to improve interpersonal
communication.
By understanding ego states and life positions we
can understand the different styles used by
people.
Most supervisors use the parental ego state to
handle the employee as we all see our parents as
first people who control our behaviour.
This helps to lead a self development.
It is also important technique of executive
development. TA can not guarantee to disappear
the human problems in organization but it will help
to improve the relations.