Douglas McGregor

He says that we can classify people into 2 groups, X and Y.

Theory X are ppl who don’t like work, they tend to avoid it. So, these people are pushed by managers or supervisors
by punishment or threat. An avg X is always lazy and isn’t ambitious

Theory Y are ppl who like work and considered something enjoyable as a game. They have ambitions and goal. They
like to work and they don’t need to be pushed. They like taking up and give solutions to the company and get
involved.

Modern Management theory

• Quantitative approach
• Systems Approach
• The Contingency Approach

Quantitative Approach

• Operations research, coined during the ww2. This was coined because the army had to make the men and
materials were available, so they mathematical and statistical methods to solve this.

Involves using statistics optimization models and information models to improve management making decisions

Operation Research is when you have a situation and optimise it using various different statistical and mathematical
methods.

Gained popularity post ww2; development of high-speed computer and Robert McNmara used Operations approach
for the Ford Motor Company

Systems Approach

• Sub systems: Even if organization is a whole system, they contain many sub systems. These sub systems are
all interlinked and it works towards a common goal. So, when a manager takes a decision on his sub system
then he should also consider the effects his decision has on the other sub systems
• Open and closed systems: An open system interacts with its environment. A Close system doesn’t interact
and get influenced with the environment
• Synergy: Performance gains the result from combined actions of individuals and departments
• Flow of materials
• Feedback

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

The Contingency Approach

• There is no one best way to organize

• ‘It depends’, ‘if then’ or ‘which method will best work here’
• The situational approach that replaces more simplistic systems and integrates much of management
methods
• Four popular Contingency Theories
o Organisational size
o Routineness of task technology
o Environmental uncertainty
o Individual Differences

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Planning
Planning is an active process and is thinking process to see what we can do in the future. Planning is
deciding what to do in advance, What, why, when and how and who. Scheme for the future and is
necessary to operate.
Why Plan-
o Failure to plan is to planning to fail. Planning provide direction, reduces uncertainty, minimises
waste and redundancy, facilitates decision making and establishes goals.
Nature-
o Goal-oriented (provides objective),
o Primary Function (without planning no other functions cannot be performed),
o All Pervasive (Everyone at every level has a plan-the degree, importance and magnitude of planning
depends on the level of the individual),
o Intellectual process (thinks foresight, imagination is needed, sound judgement),
o Continuous process,
o Involves choice (needs different plans),
o Futuristic,
o Flexible (organisations work in environment where changes happen so plans should be adaptable to
change)
Characteristics
o Clear objective,
o Proper understanding,
o Comprehensive,
o Flexible
o Economical
Approaches-
o Top-down (Top level people plan and spilt up to different levels),
o Bottom-Up (bottom level in the organisations plan and collated and taken up to form a broad
objective),
o Composite (mixed of above two),
o Teams (everyone from different levels can join)
Advantages-
o Attention to objectives,
o Minimises uncertainties,
o Better utilisation of resources,
o Better coordination,
o Encourages innovation and creativity,
o Management by exception possible,
o Facilitates control,
o Facilitates Delegation.
Limitations-
o Lack of reliable data,

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 o Time consuming process,
o Expensive,
o Reduced utility owning to external factors,
o Emergencies,
o Resistance to change

Planning Process-
o Recognising Need for Action
o Analysis of opportunity
o Gathering Info
o Establishing Objectives
o Developing Premises (assumptions of environment)
o Evaluating Alternatives
o Formulating Derivative Plans (secondary plan to support basic plan)
o Securing Cooperation and participation
o Implementation of Plans
o Providing follow up

Types of Planning
▪ Strategic Planning
▪ Operational Planning
▪ Tactical Planning
▪ Contingency Planning

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Strategic Plans-
o Apply to the entire organization
o Establish the organization in terms of its environment.
o Cover extended periods of time
Operational Plans-
o Specify the details of how the overall goals are to be achieves
o Cover short time period
Types of Op Plans
➢ Single Use plan for non-recurring activities – Won’t be used again, implemented on
activities which occur once.
➢ Standing Plans for Recurring activities- For everyone and will always remain when
activities come up again and again, Used for smooth functioning for recurring
activities. They Conserve time.
Contingency Plans
o Alternative actions for unusual or crisis situation
Tactical Planning
o To implement a strategic planning, shorter term and more specific

The difference b/w these two is

o Time horizon (op plans are short time and strategic planning involves years)
o Scope (op Plans are restricted to a particular one area or dept. strategic focus on the whole
organization.)
o Degree of Detail (Op plans are more detailed and specific and strategic is more boarder)

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)
Types of Plans/ Hierarchy –
o Vision/mission – V-An inspiration to take us forward, where we want to be, M-Purpose of the
company’s existence, every organization should have a purpose so working becomes meaningful.
o Objectives/Goals – broad vision statement has to be Specific, Measurable, Attainable, Relevant,
Timely (SMART)
o Strategies and Tactics – helps us to reach the goals
o Standards
o Budgets
o Policies
o Procedures
o Programmes
o Rules
o Methods

Developing Plans
o Contingency Factors in A Mangers Planning
➢ Managers Level in an Org
➢ Strategic Plans at higher levels
➢ Op Plans in Lower level
o Degree Of environmental uncertainty
o Length of future commitment
➢ Commitment Concept

Organising
Arranging and structuring work to be accomplished in organisational goals
Defining what work needs to get done and creating a structure that enable those work to completed
effectively and efficiently
Purpose of Organising
o Divides work to be done into specific jobs
o Assign tasks+ Responsibilities
o Coordination Diverse organisational tasks
o Cluster jobs into unit
o Establishes Relationships among individuals, groups and departments
o Formal lines of authority forms
o Allocates resources

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 Organizational Structure
o Set of formal tasks assigned to individuals, Formal reporting relationships, can be represented
by an Organisational Chart
Organisational Design
o When managers create or change structure, Involves decision of key elements: Work
Specialisation, Chain of Command, Span of Control, Centralisation and Decentralisation and
Formalisation

Ethical Dilemma and Ethical Decision Making

Ethical Dilemma is a moral Situation in which a choice has to be made b/w two equally undesirable
alternatives. A business dilemma exists when an organizational decision maker faces a choice b/w two or
more options that will have various impact on the organization’s profitability and competitiveness and its
stakeholders.

Dilemma Can occur in these situations

• Organisations vs Persons (Employees)

• Persons vs Society
• Local culture vs Foreign Culture
• Organisation Vs Law
• Person Vs Law

Causes and sources of dilemma

• Individual- Conflict with culture

• Family- Family values conflict with social culture
• Organisation/ workplace-Racial/ gender discrimination, pressure from organisation (Selling
hazardous products) conflict with personal value
• Society- Society norms in conflict with individual norms

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 • Cross cultural Levels- Culture of one country may conflict with Cultural practices of another
country. i.e., in International Business

Factors affecting Business Ethics

1. Individual Factors
2. Social Factors

Steps to sound Ethical Decision

1. Gather Facts/Truth
➢ When gathering facts
➢ Am I jumping to conclusions?
➢ How did the situation Occur?
➢ Am I collecting facts concerning current situation?
➢ Am I collecting Facts concerning the future?
➢ Are there historical facts to this problem
➢ There are limitations
➢ Consider legal, social, personal, psychological, financial and organisational facts
2. Define Ethical Issue/ Dilemma
➢ Dilemma arises because a choice has to be made
➢ Think thoroughly about the issue and look for justifiable reasons to respond

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 ➢ Options may differ in their aspects or consequences
➢ Consult others for opinion

3. Identify The affected parties

➢ Know how stakeholders who are affected by your decisions. Don’t discriminate them
➢ Kohlberg’s 5th stage is considered
4. Identify the Consequences
➢ Actual vs Potential Consequences
➢ Short term vs Long Term Consequences
➢ Direct vs indirect Consequences
➢ Open vs Secret Consequences
➢ Minor vs Major Consequences
5. Identify The obligations
➢ Legal
➢ Social
➢ Moral
➢ Technical/Professional
➢ Financial
➢ Personal
6. Consider your Character and integrity
7. Think Creatively About Potential Actions
➢ Think creatively about alternate solutions available for the problem
8. Check Your Guts
➢ Consider your gut feeling

Conclusion

There are two approaches- Linear Approach and Heuristic Approach

Linear – A Logical step by step procedure

Heuristic- Use you experience as a tool or rule of thumb or use speculative formulation as a guide in the
investigation or sol. of the problem.

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Josephsons Six Pillars of Character and business Decision making

Trustworthiness – Upfront a honesty in all actions including interaction with employees and customers
Respect- All people Have an inherent right to receive respectful treatment,
Responsibility- being accountable to decisions and action without blaming anyone else as well as a
diligence and desire to succeed.
Fairness- balanced Code of Conduct that serves everyone including in business and customers,
Caring- Caring Attitude towards employees and society at large. A company may not always be able to
solve issue but showing concern is a positive attribute for a company.
Citizenship- A busines is part of a community and society on a large scale. A business should conduct itself
within the laws of community, A business can show a civic minded mentality by assisting the community in
Various ways, CSR
Relation b/w ethical awareness, judgement and action

Individual Actions influences Ethical Judgement and action

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Departmentalisation
• How jobs are grouped together
• Grouping together of basic tasks
• 5 common types of departmentalisation
• Large organisations often combine different departments

Work Specialization
o Dividing work tasks into separate jobs
o Also known as division of labour
o Employees perform only the tasks relevant to their specialised function
o Jobs tend to be small but they can be formed efficiently
o Departmentalisation offers basis on which jobs are grouped together
o There is concern that employees may becomes isolated, and so only a single boring job
o MacDonald’s are embracing work specialisation
o Tata Steel and American Express -moving away from this principle

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Chain of Command
Unbroken line of authority that links al persons in an organization and shows report to whom
Associated with three underlying principle
➢ Unity of command -report to one manager
➢ Authority – rights to inherent a managerial position
➢ Responsibility – obligation to duty

Authority:
Line authority- Means people in management positions have formal authority to control immediate
subordinates
Staff Authority- He has the right to advise, recommend and counsel in specialist area of expertise

Span of Control
o The number of employees reporting to a supervisor
o Traditional View, seven or so per manager
o Many organizations today, 30 or more per manager

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 o Generally, if supervisors must be closely involved with employees’ span should be small
o Current trend towards larger spans of control

Variables that affect Span Of Control

o Similarity and Complexity of task involves

o Physical proximity of subordinates

o Degree to which standardised procedure are in place

o Sophistication of the organisations information system

o Preferred style of manager

Large span of control factors

o Work is stable
o Similar task done by everyone
o A single location
o Employees are highly trained
o Rules and procedures are available
o Support systems and personnel are available for supervisor
o Little time is required in non-supervisory activities
o Personal preferences and styles of management favour a large span

Tall Structure and Flat Structure

When you have span of control is more then we have tall structure
When there is less span of control we have Flat structure

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Five Approaches to Structural Design
Vertical – separated in to different levels

Divisional - an organisational structure made up of separate semi autonomous units

Matrix- Organisational structure that assigns specialists from one or more

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 Team-Based- Different teams report to one

Network

Learning Organisation
Organisation that has developed the capacity to continuously adapt and change because all members take
an active role in identifying and resolving work related issue

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Centralisation vs Decentralisation
Centralisation-n Decision authority is located near the top of hierarchy
Decentralisation- Authority is pushed downward, more towards the lower positions in the hierarchy level
Comparisons of Centralisation vs Decentralisation

What affects the Organizational Structure?

1. Strategy- Different strategy use different structures
A differentiation strategy needs a flexible structure, low cost may need a more formal structure
2. Environment – The quicker the environment changes the more problems face manager
Need flexible structure; need decentralised authority
3. Technology – combination of skills, knowledge, tools, equipment, computers and machines used in
the organisation.
Task variety: New problems a manager encounter
Task analysability: Programmed solutions available to manager to solve problems
Low Task Variety+ High Analysability allow managers to rely on established procedures
High task Variety+ Low analysability present many unique solutions to managers. Flexible structures
are used here.
I. Small batch Technology- Produces Small quantities of one-of a kind product
II. Mass Production Technology: Automated machines make high volumes of standard products

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 III. Continuous Process technology
4. Human resources- Higher skilled workers who need to work in teams usually need a more flexible
structure

Staffing
Aspects of staffing

• Matching jobs and individual

• Filing and keeping filled positions in the organisation
• Involves functions like
❖ Manpower Planning (MPP)
❖ Recruitment
❖ Selection
❖ Training and Development
❖ Performance appraisal
❖ Transfers promotion etc

Directing
Concerned with initiating action
Influencing, guiding or supervising the subordinates in their job
Elements of directing

• Leadership
• Communication
• Motivation
• Supervision

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Controlling

1. Measuring
The actual Performance, the measurement of performance can be done in several ways, depending on the
performance standards, including financial statements, sales reports, production results, customer
satisfaction, and so on.

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

2. Comparing
Determining the degree of variation between actal erformance and the standard
Significance of Variation determined by:

• Acceptable range of variation from the standard (Forecast or Budget)

• The size and direction of variation form the standard (forecast and budget)
3. Taking Managerial Action

Course of action :

• Doing Noting- Only if deviation is judged to be insignificant

• Correcting Actual current performance:
o Immediate corrective action
o Basic corrective action to locate and correct source of deviation
• Corrective action:
o Change strategy, structure, compensation etc
• Revising the standard:
• Resetting goals:
o See if standards is realistic, fair or achievable, correct standard if it isn’t

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 Module 2
Organisational Behaviour
A field of study that investigates the impact that individuals, groups and structure have on behaviour
withing organizations for the purpose of applying such knowledge toward improving and organizations
effectiveness
OB is the study of what people do in an organization and how their behaviour affects organization
performance
Goals of OB is to explain, predict and influence behaviour

Intuition and systematic Study

Intuition
▪ Gut feeling
▪ Individual observation
▪ Common-sense
Systematic study
▪ Looks and cause and effect relationship
▪ Scientific evidence
▪ Predicts behaviour
▪ Evidence based management (EBM)
▪ Basing managerial decisions on the best available scientific evidence

Elements which contribute to OB

Many behavioural sciences such as, Psychology, Social Psychology, Anthropology and Sociology.

Psychology- Measures, explain and change behaviour of humans and other animals;
Unit of analysis – Individual
Contribution to OB: Learning, Motivation, Personality, Emotions Perception; Training, Leadership, Job
Satisfaction; Individual Decision Making, Performance Appraisal, Attitude Measurement; Employee
Selection, Work Design and Word Stress.
Sociology- Study of people in relation to their fellow humans – How people interact with each other
Unit of Analysis - Organisational system; Group
Contribution to OB: Group Dynamics, Wok Teams, Communication, Power, Conflict, Intergroup Behaviour;
Formal Organization Theory, Organizational Technology, Organizational Change, Organizational Culture
Anthropology- Studies of societies to learn about human beings and their activities
Unit of Analysis - Organisational system and Group

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Contribution to OB: Organizational Culture, Organizational Environment. Group, Comparative Values,
Competitive Attitudes and Cross Culture
Social Psychology- Blends psychology and sociology and sees how it influences people
Unit of analysis - Group
Contribution to OB: Behavioural Change, Attitude Change, Communication, group processes, Group
Decision Making.

Types of Study Variables:

Independent (X)
Dependent Variables (Y)

Some examples of of OB Dependent Variables

▪ Productivity
▪ Absenteeism
▪ Turnover
▪ Deviant Workplace behaviour
▪ Organisational Citizenship Behaviour
▪ Job satisfaction

Types of OB Independent Variables

Independent variable can be three types.
1. Individual Level
▪ Personality, emotions, perception, motivation, individual decision making, individual learning,
values, attitudes
2. Group Level

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 ▪ Communication, group decision making, leadership and trust, group structure, conflict, power and
politics, work teams
3. Organizational Level
▪ Organisational culture, human resources policies and practices, organisational structure and design.

These types of independent variables can affect the dependent variables.

Perception
1. Biological Characteristics
Personal characteristics. – Such as Age. Gender, marital status
2. Ability
An individual’s capacity to perform tasks
3. Intellectual ability
Capacity to do mental activities
4. Multiple Intelligence
Intelligence contains four subparts Cognitive, Emotional, Social and Culture

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Attribution theory: Judging Others
➢ Our perception and judgement of others is significantly influenced by our assumptions of other
person’s internal state
➢ When individuals observe behaviour, they attempt to determine whether is it internally or
externally caused
▪ Internal Causes are under the person’s control
▪ External causes are not under the person’s control
➢ Causation Judged through:
▪ Distinctiveness: Shows different behaviour in different situations
▪ Consensus: Response is the same as others to the same situation
▪ Consistency: responds in the same way over time

Error and Biases in Attributions

1. Fundamental attribution error - Underestimating external factor and overestimating internal

factors; Blames person first not the situation
2. Self-serving Biases - Putting success to internal factor and putting blame on external factors;
“Our” success and “their” failure.

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Shortcuts used to judge others

• Selective perception – People interpret what they see on the basis of their interests, background,
experience and attitudes
• Halo effect- Drawing a general impression of an individual basis of a single characteristic
• Contrast effect- Person characteristics that are affected by comparisons with other people recently
encounters who rank higher or lower on the same characteristics
• Stereotyping – Judging a person based on the individual and personal perception of a group which
the person belongs to
• Profiling- Singling out a group based on single, often racial trait

Specific Shortcut Applications in Organisations

• Employment Interview
o Perception of the interviewees affect the accuracy of judgment of the interviewer
o Formed at a single glance at 1/10th of a second
• Performance expectations
o Self-fulfilling Prophecy: Employees perform higher or lower depending on what their employers
expect them to perform.
• Performance Evaluations:
o Appraisals are often the subjective perceptions of appraisers of another employee’s job
performance
o This has as a Huge impact on employees

Personality

The sum total of ways in which an individual reacts to a situation and how he interacts with others.
These measurable traits are called personality.

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Measuring Personality can be done by Self Reporting Surveys is the more common method, another
person can be surveying the individual.
Personality Determinants
• Personality is developed by both Nurture and Nature
• Hereditary
o Factors determined at conception: Physical Stature, Facial Attractiveness, Gender,
Temperament, Muscle Composition and reflexes, Energy Level and Bio-Rhythms
o Twin Studies: Raised apart but similar personalities
o Genes are the source of personality
• Situation
• Environment

Different theories related to Personality

Psychoanalytical Theory
Founded by Sigmund Freud. Id, Ego and Superego work together to create complex human behaviour
Id - Something in your unconscious and subconscious, Primitive animal instincts and immediate
gratification (which is controlled by Ego and Superego)
Ego - Logical part of your personality, something in touch with your reality, Controls the id with logic and
intellect
Superego - The reality, Moral Constraints, Tells the Id and Ego what is right and what is wrong.
The superego has two parts:
• The conscience – includes information which are considered bad by the society, these kinds of
behaviour usually lead to bad consequences, punishment or feelings of guilt or remorse
• The ego Ideal - includes the rules and standards for behaviours that the ego aspires to

Two Dominant frameworks used to describe personality

The Myers Briggs Type Indicator
Big Five model

The Myers Briggs Type Indicator

Widely used instrument, the participants are classified into four axes to determine one of 16 possible
personality types such as ENTJ. Based on the answers to the questions on the inventory, people are
identified as having one of 16 personality types. The goal of the MBTI is to allow respondents to further

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

explore and understand their own personalities including their likes, dislikes, strengths, weaknesses,
possible career preferences, and compatibility with other people.

Big Five Models of Personality Dimensions

Extroversion
High - Sociable, Energized, Excitement seeking, enjoys being center of attention, Outgoing
Low - Prefers Solitude, Fatigues by too much social interaction, reflective, dislikes being center of
attention, reserved
Agreeableness

Measures a person’s propensity to defer to others

High - Trust (forgiving), Straightforwardness, Altruism (Enjoy helping), compliance, modesty, sympathetic,
empathy

Low - Sceptical, Demanding, Insults and belittles others, stubborn, show off, unsympathetic, doesn’t care
about how other people feel.

Conscientiousness

High - Competence, Organized, Dutifulness, Achievement striving, self-disciplined, deliberation

Low - incompetent, disorganized, careless, procrastinates, indiscipline, impulsive

Emotional Stability

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Ability to withstand stress

High - Anxious, Angry hostility, experienced a lot of stress self-conscious, vulnerability, experiences
dramatic shifts in mood

Low - doesn’t worry much, calm, emotionally stable, confident, resilient, rarely feels sad or depressed

Openness to Experience

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Learning

Any relatively permanent change in behaviour that occurs as a result of experience, it usually involves
change and is permanent. Learning is usually acquired though experience.
Theories of Learning
o Conditioning Theory
o Social Learning Theory
o Cognitive Learning Theory

Conditioning theory
Consists of two parts; Classical conditioning and operant Conditioning
Classical Conditioning (Pavlovian Conditioning)-
This was coined by Ivan Pavlov during 1900s
This type of conditioning in which an individual responds to some stimulus that would not ordinarily
produce such a response.
The Key concepts of Classical Conditioning theory is; Unconditioned Stimulus, Unconditioned Response,
Conditioned Stimulus and Unconditioned Response

Unconditioned stimulus. This is the thing that triggers an automatic, natural and unconditioned response.
Smell or the vision of the food is the unconditioned stimulus in Pavlov’s dog experiment.

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Unconditioned response. This is what response naturally occurs when you experience the unconditioned
stimulus, such as salivating seeing/smelling the food.

Conditioned stimulus. This is considered a neutral stimulus. When you’re presented with it over and over
before the unconditioned stimulus (e.g., food), it will start to evoke the same response even though it is
unrelated. The bell was chimed before serving the food, even though the bell and the food had no
connection, the repetitive bell chiming before the food caused a conditioned response. The chiming of the
bell before the food is the conditioned stimulus.

Conditioned response. This is the acquired response to the conditioned stimulus (the bell), which is often
the same response as the unconditioned response. So, the dog salivated when the bell chimed even before
the food was bought out. The salivating is the conditioned response becaue the dog associated bell chiing
to food being served.

Operant Conditioning

This theory of learning was coined by B F Skinner

His theory states that behaviour is a function of its consequences, this is a learning behaviour occurring
through rewards and punishments. Through operant conditioning an association is made between a
behaviour and a consequence for that behaviour.

E.g., The person scoring the most will be rewarded a Biriyani by Manu Sir, or employees finishing projects
receive praises or promotions. A child may be told they will lose breaktime if they talk during classes.
Operant conditioning can be used to increase or decrease a behaviour

Four types of learning process in operant conditioning

Reinforcer
Any event that Strengthens or increases the behaviour it follows
There are two types of reinforcers
1. Positive reinforcers: the process of encouraging or establishing a pattern of behaviour by offering
reward when the behaviour is exhibited. A mother gives her son praise for doing homework
2. Negative Reinforcement: Negative reinforcement is the encouragement of certain behaviours by
removing or avoiding a negative outcome or stimuli. removing restrictions from a child when she
follows the rules is an example of negative reinforcement. Negative reinforcement is not a form of
punishment.

In both of this reinforcement the behaviour increases

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Punishment
Presentation of an adverse event or outcome that causes a decrease in behaviour it follows.
There are two kinds of punishments:
3. Positive punishment- involves adding an unfavourable consequence after an undesired behaviour
is emitted to decrease such future responses Adding chores and responsibilities when he fails to
follow the rules.
4. Negative Punishment- includes taking away a certain reinforcing item after the undesired
behaviour happens in order to decrease future responses. Losing access to a toy, being grounded,
and losing reward tokens, in all the cases something good is being taken away.

Here there is a reduction in behaviour, the offending behaviour does not decrease then it is not
considered punishment.
ALWAYS REMEMBER REINFORCEMENTS CAUSE INCREASE IN BEHAVIOUR WHERAS PUNISHMENTS CAUSE
DECREASE IN BEHAVIOUR.

Social Learning Theory

This theory states that people can learn through observation and direct experience. This is also known as
observational learning (or modelling) because people learn from watching models such as parents, peers,
stars, bosses and so on.
Fours processes determine the influence that a model has on an individual:
▪ Attentional Processes
▪ Retention Processes
▪ Motor Reproduction Processes
▪ Reinforcement Processes

Cognitive Learning Theory

The learner is an active participant in the process. They come to the table with their own skills, knowledge,
memories and relevant information they’ve learned in the past. When learning something new, individuals
process and construct their own understanding of a topic based on their past experiences and knowledge .

Motivation

The process that account for individuals intensity, direction and persistence of effort towards attaing a
goal.

1. Intensity – How hard a person tries

2. Direction – Towards a benificail Goal
3. Persistence – How long a erson tries

Motivation Process

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

1. Identify Unsatisfied Needs and Motives
The first process of motivation involves unsatisfied needs and motives. Unsatisfied needs activated by
internal stimuli such as hunger and thirst. They can also be activated by external stimuli such as
advertisement and window display.
2. Tension
Unsatisfied needs to create tension in the individual. Such tension can be physical, psychological, and
sociological. In this situation, people try to develop objects that will satisfy their needs.
3. Action to satisfy needs and motives
Such tension creates a strong internal stimulus that calls for action. The individual engages in activities
to satisfy needs and motives for tension reduction. For this purpose, alternatives are searches and
choice are made, the action can be hard work for earning more money.
4. Goal accomplishment
Action to satisfy needs and motives accomplishes goals. Achieved through reward and punishment.
Ultimately goals are accomplished.
5. Feedback
Feedback provides information for revision or improvement or modification of needs as needed.
Depending on how well the goal is accomplished their needs and motives are modified.

Motivation Theories are classified into two types:

Content Theories: What motivates the people. concerned with individual goals and need
Process theories: How it motivates the people, concerned with the process of achieving the goals

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Maslows Heirachy of Needs

Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human
needs, often depicted as hierarchical levels within a pyramid.
.

Needs lower down in the hierarchy must be satisfied before individuals can attend to needs higher up.

Alderfer’s ERG Theory

Three groups of core needs are there
1. Existence (Maslow’s: Physiological and Safety)
2. Relatedness (Maslow’s: Social and status)
3. Growth (Maslow’s: Esteem and self-actualization)
No hierarchical assumption, we can be motivated by all three at once how ever this is not an accurate
theory

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Goal Setting Theories

1) Edwin Lockes Goal Setting theory

Basic Premise
• Specific and difficult goals with self-generated feedback lead to higher performance
• Cognitive approach- individuals purposes direct his action
Difficult goals
• Focus and direct attention
• Energize the person to work harder
• Difficulty increases persistence
• Force people to be more effective and efficient
Relationship between goals and performance
• Goal commitment
• Task characteristics
• culture

Implementation of goal Setting: Management by Objectives

o MBO - Management by Objective utilizes goal setting. Here the manager sits with the employees to
discuss goals which motivates a closer relationship and the employee can see how much he can
achieve and the manager can see what he can expect.
o Goals will be tangible, verifiable and measurable.
o Corporate goals are broken down to smaller more specific at each level of the organization.

Four common ingredients to MBO programs is:

• Goal Specificity
• Participative decision making
• Explicit time period
• Performance feedback

2) Self Efficacy Theory by Albert Bandura

Observation+ Emulation
Self-efficacy is basically self-belief, it’s about judging yourself on how much you can do, self-analysis.

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Higher Efficacy is related to:
▪ Greater confidence
▪ Greater persistence
▪ Better response to negative feed back

If you lack self-efficacy who won’t even try and the effort will be zero.
This theory of Bandura says that people engage in activities to the extent that they perceive themselves to
be competent at those activities
Self-Efficacy Compliments Goal Setting theory

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

 1. Enactive Mastery
• Most important source of self-efficacy
• Gaining Relevant Experience with task or job
• Practice makes perfect
2. Vicarious Modelling
• Increasing Confidence by enacting others perform the task
• Most effective when observer sees the model to be similar to him/her

3. Motivation through verbal conviction

• Pygmalion effect and galatea effect- self-fulfilling prophecies
▪ Pygmalion effect is when managers behave in such a manner where they give high
expectation through verbal cues which will motivate the employees to meet those
expectations
▪ Galatea Effect –

4. Arousal
• Getting emotionally aroused to complete task
• Individuals Emotional or physiological states influence self-efficacy judgment. E.g. Anxiety
can influence negatively on the work

3) Reinforcement theory
Reinforcement theory of Motivation was proposed by BF Skinner, this is a psychological principle
maintaining that behaviours are shaped by their consequences and that, accordingly, individual behaviours
can be changed through rewards and punishments.

The Carrot and Stick Approach:

Principles of reinforcement
This theory is from an old story of a donkey where the best way to move the donkey was putting a carrot
in front of him and jab him from behind. The carrot is a reward for moving while the stick is the
punishment for not moving and hence making him forcefully.
This same theory is used on an individual to make a better work efficiency

4) Stacy Adams Equity Theory

Employees compare their ratios of outcomes to inputs of relevant others
• When ratios are equal state of equity exists- Situation is considered fair and just
• When equity doesn’t exist- Tension exists due to unfairness
▪ Under rewarded can cause anger
▪ Overrewarded causes guilt
Tension motivates people to act to bring their situation into equity

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Inputs: Education, Experience, effort, loyalty, commitment

Out puts: Direct pay and bonuses, fringe benefit, job security, social rewards and psychological.

Equity theory is focussed on Organisational Justice, which means the overall perception of what is fair in
the workplace, It has Three dimensions

• Distributive Justice - Distributive justice concerns the socially just allocation of resources, Fairness
of outcome (I got the pay I deserve)
• Procedural Justice – The perceived fairness of rules and decision process to determine outcomes (I
was given a raise with explanation of why I was given so)
• Interactional Justice - Whether the person is being treated with dignity and respect (while talking
about my raise my supervisor was very nice and complimentary)

Vrooms Expectancy Theory

Proposed By victor Vroom believed people are motivated to perform activities to achieve some goal to
the extent they expect that certain action on their part would help them achieve goals
Valance, Instrumentality and Expectancy, VIE Theory
Algebraic Representation is - Motivation (force)= ∑Valance x Expectancy

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)

Valance: Value the individual places on a particular outcome or a strength of an individual’s preference for
the expected rewards.
Expectancy: Expectancy, refers to the probability that a particular action will lead to the desired outcome.
Instrumentality: person's attitude toward an occurrence (outcome) depends on his perceptions of how
that outcome is related (instrumental) to the occurrence of other more or less preferred consequences.

How to redesign Jobs

Jobs Rotations

• Shifting of an Employee from one task to another with similar skill requirement
• This helps managers in scheduling, Reduces Boredom, Increased skills, increases understanding of
work contribution

Job Enlargement

• Increasing the number and variety of tasks that an individual performed

• Horizontal expansion of jobs

Job Enrichment

• The vertical expansion of job

• Increases the degree to which the worker controls the planning, execution and evaluation of the
work.
• E.g., moving from assembly line operations to handling a customer from start to end, making the
employee a trade expert well versed in finance, law and become full-service advisor

MCOB NOTES | Hamidha Puthan Peedikakkel (CUSAT MBA FT, 2020-22)