Organizational Behavior - Detailed Exam Notes
UNIT 1: Defining Organizations and Organizational Behavior 1.1 Defining Organizations
Organizations are structured social systems where people collaborate to achieve common
objectives. Features include: - Goal orientation (Apple – innovation focus). - Structured roles
(Infosys project teams with hierarchies). - Social entities (Google’s cross-functional collaboration). -
Open systems (Swiggy adapting to regulatory changes). 1.2 Organizational Behavior (OB)
Definition: Study of human behavior in organizations, focusing on individuals, groups, and systems.
Importance: Enhances productivity, job satisfaction, innovation, and adaptability. Example:
Microsoft promotes a growth mindset to foster innovation. 1.3 Historical Background - Scientific
Management (Taylor): Efficiency & standardization (Ford assembly line). - Bureaucratic Model
(Weber): Formal rules & hierarchy (Indian Railways). - Human Relations (Mayo – Hawthorne
Studies): Social needs and group dynamics (Google’s employee wellbeing programs). - Behavioral
Science: Psychology and sociology applied (Infosys HR analytics). - Modern OB: Systems and
contingency approach. 1.4 Theoretical Frameworks - Micro perspective: Focus on individual
behavior (motivation, learning, personality). - Macro perspective: Focus on organizational systems
(structure, culture). Example: Tesla (macro – agile structure; micro – Elon Musk motivating
engineers). 1.5 Models of OB - Autocratic: Boss-centered (military). - Custodial: Benefits-focused
(Walmart job security). - Supportive: Leadership & motivation (Google’s psychological safety). -
Collegial: Partnership & teamwork (Infosys agile teams). - System: Trust & values (Tata CSR
culture). 1.6 Contributing Disciplines - Psychology: Personality, learning. - Sociology: Culture,
group dynamics. - Anthropology: Cross-cultural behavior. - Political Science: Power, conflict. -
Economics: Incentives, decision-making. 1.7 Challenges & Opportunities in Today’s OB -
Globalization: Cross-cultural teams (Infosys in US & India). - Technology: Remote work & AI
(Zoom, Slack). - Workforce Diversity: Gender, age, cultural diversity (Accenture). - Ethics & CSR:
Sustainability (Unilever). - Change management: Startups adapting quickly (Zomato pivot during
COVID). 1.8 Role of Information Technology - Enhances communication (Microsoft Teams). -
Enables remote collaboration (Google Workspace). - Big Data for HR decisions (LinkedIn recruiting
analytics). 1.9 Total Quality Management (TQM) Continuous improvement in quality, customer
satisfaction focus. Example: Toyota Production System (lean manufacturing). 1.10 Learning
Organizations Organizations that adapt and innovate continuously. Example: Google encourages
knowledge-sharing and experimentation. 1.11 Organizational Technology Integration of IT, AI,
automation, and cloud computing in processes. Example: Amazon’s warehouse robotics.
UNIT 2: Motivation, Attitudes, Values, Job Satisfaction, and Commitment 2.1 Motivation
Theories - Content Theories: Maslow’s hierarchy (Google offering self-actualization opportunities),
Herzberg’s Two-Factor (Infosys recognition programs), McClelland’s Needs Theory (entrepreneurs
like Ola’s Bhavish Aggarwal driven by achievement). - Process Theories: Vroom’s Expectancy
(employee effort rewarded), Equity Theory (fair pay at TCS), Goal-Setting Theory (Intel’s OKRs). -
Contemporary: Self-Determination Theory (autonomy at Netflix), Job Characteristics Model
(Zappos’ enriching roles). 2.2 Managing Work Motivation Clear goals, fair rewards, recognition.
Example: Deloitte’s flexible career programs. 2.3 Goal Setting & MBO SMART goals, participative
setting. Example: Intel and Google using OKRs. 2.4 Attitudes Definition: Learned predisposition
towards objects/people. Work attitudes: Job involvement, organizational commitment. Changing
attitudes: Training, counseling, leadership modeling. 2.5 Values - Organizational values (Tata
ethics). - Work values (Millennials prefer flexibility – startups like Swiggy). 2.6 Job Satisfaction
Influences: Pay, work conditions, leadership. Outcomes: Lower turnover, higher productivity.
Example: Infosys employee development programs. 2.7 Organizational Commitment Types:
Affective, continuance, normative. Outcomes: Better retention. Example: IBM investing in reskilling
employees. 2.8 OCB (Organizational Citizenship Behavior) Voluntary actions improving
workplace. Example: Microsoft employees mentoring peers voluntarily.
UNIT 3: Groups, Teams, Decision-Making, Communication, and Conflict 3.1 Groups & Teams
Nature: Formal (departments) & informal (friendship groups). Dynamics: Shared norms, roles.
Dysfunctions: Groupthink (NASA Challenger case). 3.2 Teams - Types: Cross-functional (Google
project teams), Virtual (Infosys remote teams), Self-managed (Zappos Holacracy). - Team building:
Trust, collaboration. - Effectiveness: Clear goals, cohesion. - Example: Toyota’s production teams.
3.3 Decision Making - Models: Rational model, bounded rationality (Herbert Simon). - Styles:
Directive, analytical, conceptual. - Biases: Overconfidence, confirmation bias. - Group techniques:
Brainstorming (IDEO), Nominal Group, Delphi. - Creative techniques: Design thinking (Apple). 3.4
Communication Goals: Clarity, coordination, motivation. Networks: Chain, wheel, all-channel.
Directions: Upward, downward, horizontal. Dynamics: Formal vs informal (grapevine). 3.5 Conflict
Management Types: Interpersonal, intergroup. Strategies: Collaboration, compromise, avoidance.
Ethical dilemmas: Balancing fairness vs outcomes. Example: Amazon warehouse labor disputes
resolved with mediation.
UNIT 4: Learning, Personality, Perception, and Diversity 4.1 Learning Theories &
Applications - Classical Conditioning (Pavlov): Habit learning. - Operant Conditioning (Skinner):
Reinforcement (Incentive pay at Infosys). - Social Learning (Bandura): Role modeling (Google
leaders mentoring juniors). - Applications: OBM – reward systems (pay, recognition, feedback). 4.2
Personality - Determinants: Heredity, environment. - Theories: Big Five (OCEAN – used in hiring
at Deloitte), MBTI (used at IBM). - Personality-job fit: Holland’s model. - Personal effectiveness:
Self-awareness, adaptability. 4.3 Emotions Affect decision-making, motivation. Example: Apple’s
design teams motivated by passion & pride. 4.4 Perception Process of interpreting stimuli. Errors:
Stereotyping, halo effect. Impact on decisions: Misjudging employee ability. Example: Infosys using
assessment centers to reduce bias. 4.5 Diversity - Fundamentals: Age, gender, cultural. -
Challenges: Bias, discrimination. - Management: Diversity training, inclusive leadership. Example:
Accenture’s gender diversity initiatives.
20 Possible Exam Questions 1. Define Organizational Behavior and explain its importance with
examples. 2. Discuss the historical evolution of OB and its relevance today. 3. Compare micro and
macro perspectives of OB with organizational examples. 4. Explain the different models of OB with
examples from MNCs. 5. How do various disciplines contribute to OB? Illustrate with examples. 6.
Discuss major challenges facing organizations today and role of IT in solving them. 7. Explain Total
Quality Management and its application in global firms. 8. Define Learning Organizations with
examples. 9. Explain Maslow’s, Herzberg’s and McClelland’s motivation theories with workplace
examples. 10. How do process theories of motivation guide managers in practice? 11. Discuss
Goal Setting Theory and Management by Objectives with practical cases. 12. Explain work
attitudes and how organizations can change them. 13. Define job satisfaction. Explain its influences
and outcomes. 14. Discuss types of organizational commitment with examples. 15. What is OCB?
Why is it important? 16. Explain group dynamics and dysfunctions with examples. 17. Discuss
decision-making models and biases in organizational contexts. 18. Explain organizational
communication networks and dynamics. 19. Describe strategies for conflict management and
ethical dilemmas involved. 20. Discuss diversity challenges and how organizations can manage
diversity effectively.
