Key Points at a Glance

Organizational Behavior (OB) is the study of individual and group behavior within organisations, and the interface between human behavior and the organisation. It draws from psychology (individual), social psychology (groups), sociology (organisations), and anthropology (culture). Key founders: Elton Mayo (Hawthorne Studies, 1924–32) and Kurt Lewin (group dynamics, 1947).

Maslow's Hierarchy of Needs (1943): Five-tier pyramid — from bottom: (1) Physiological (food, water, sleep); (2) Safety (security, employment, health); (3) Social/Love-Belonging (friendship, family, intimacy); (4) Esteem (self-esteem, recognition, achievement); (5) Self-Actualisation (realising full potential, creativity, meaning); lower needs must be substantially satisfied before higher needs motivate.

Herzberg's Two-Factor Theory (1959): (1) Hygiene factors (maintenance factors) — working conditions, salary, security, company policy; their presence prevents dissatisfaction but does NOT motivate; (2) Motivators — achievement, recognition, responsibility, advancement, growth; their presence actively creates job satisfaction and motivation.

McClelland's Three-Needs Theory (1961): Three acquired needs drive behavior: (1) Need for Achievement (nAch) — desire to excel, take moderate risks, prefer personal responsibility for results; (2) Need for Power (nPow) — desire to influence others; personal power (self-interest) vs. institutional power (organisation's benefit); (3) Need for Affiliation (nAff) — desire for close interpersonal relationships and being liked.

Perception in OB is the process by which individuals select, organise, and interpret sensory information to make sense of the world; perceptual biases distort accurate understanding — key ones: Halo Effect (one trait colours overall perception), Stereotyping (assigning group traits to individual), Projection (attributing own feelings to others), Selective Perception (filtering information to confirm prior beliefs).

Leadership styles: (1) Autocratic — all decisions by leader alone; no subordinate input; fast decisions but low morale; (2) Democratic/Participative — subordinates involved in decisions; higher morale and creativity; (3) Laissez-faire — leader delegates fully; works for highly skilled/motivated teams. Path-Goal Theory (House, 1971): Leader adjusts style to clear obstacles in subordinates' path to goal — four styles: Directive, Supportive, Participative, Achievement-Oriented.

Groups in organisations: Formal groups (task-based, officially created) vs. Informal groups (naturally formed, socially based). Group formation stages (Tuckman, 1965): Forming → Storming → Norming → Performing → Adjourning. Team vs. Group: A team has shared goals, mutual accountability, and complementary skills; a group may just share a common designation.

Organisational Culture (Edgar Schein, 1985) — the pattern of shared basic assumptions that a group has learned as it solved its problems of external adaptation and internal integration; three levels: (1) Artefacts (visible structures, processes, symbols — dress code, office layout); (2) Espoused values (stated strategies, goals, philosophies — mission statements); (3) Basic assumptions (unconscious, taken-for-granted beliefs — deepest level).

Hawthorne Studies (Elton Mayo, 1924–32): Conducted at Western Electric Company, Hawthorne, Chicago. Key findings: (1) Worker productivity increased regardless of lighting conditions — the Hawthorne Effect (being observed increases performance); (2) Social norms of work groups influence productivity more than physical conditions; (3) Recognition and attention from management significantly improve morale; led to Human Relations School of Management.

McGregor's Theory X and Theory Y (1960): Theory X assumes workers are inherently lazy, dislike work, need close supervision, are primarily motivated by money and security (negative view); Theory Y assumes workers are self-motivated, capable, creative, seek responsibility, and are motivated by higher-order needs (positive view); McGregor advocated Theory Y as more effective for modern organisations.

Charismatic Leadership (Weber/Conger & Kanungo): Leader with extraordinary qualities, vision, and rhetorical ability who inspires devotion and self-sacrifice; NCRB PYQ 2021 — four characteristics: (1) Vision and articulation; (2) Sensitivity to followers' needs; (3) Unconventional behavior; (4) Willingness to take personal risks; distinct from transformational leadership which is more systematic.

Conflict in organisations: Functional (productive) vs. Dysfunctional (destructive) conflict; Thomas-Kilmann Conflict Mode Instrument: 5 conflict handling styles — Competing, Collaborating, Compromising, Avoiding, Accommodating; the Collaborating style achieves both parties' goals but requires time and high trust.