Organizational Behavior: Theories, Models, and Workplace Dynamics

Posted on Sep 13, 2025 in Psychology and Sociology

Raman J. Aldag states: “Organizational Behavior is a branch of the Social Sciences that seeks to build theories that can be applied to predicting, understanding, and controlling behavior in work organizations.”

The Study of OB: Enhancing Workplace Performance

The study of Organizational Behavior (OB) is vital for several reasons:

  • Enhancing Productivity: Understanding OB helps managers improve employee productivity through motivation, job satisfaction, and teamwork strategies.
  • Improving Employee Satisfaction: It enables managers to create a positive work environment, addressing factors such as morale and job satisfaction.
  • Reducing Absenteeism and Turnover: OB provides insights into employee behaviors, reducing issues like absenteeism and staff turnover.
  • Improving Decision-Making: OB equips managers with tools to make informed and effective decisions based on employee behavior patterns.

Key Objectives of Organizational Behavior Study

The primary objectives of studying OB include:

  • Understanding Human Behavior: To comprehend how individuals and groups behave in an organizational setting.
  • Predicting Behavior: To anticipate future behaviors based on analysis of past trends and behaviors.
  • Influencing and Managing Behavior: To apply knowledge for controlling and directing behaviors to achieve organizational goals.

Learning Outcomes in Organizational Behavior

  • Students will understand OB concepts and their relationship with other fields.
  • They will develop skills to predict, influence, and analyze human behavior in organizations.
  • Learners will gain insights into improving organizational efficiency through OB principles.
  • They will understand the ethical aspects of organizational behavior and apply them in managerial roles.

The Hawthorne Studies: A Landmark in OB

The Hawthorne Studies, conducted at the Western Electric Company in Chicago between 1924 and 1932, were a series of experiments aimed at exploring how various factors influenced worker productivity. While the original goal was to assess the impact of physical conditions on output, the studies ended up revealing the critical role of psychological and social factors in workplace performance.

Key Phases and Findings of the Hawthorne Studies

  1. The Illumination Experiment (1924-1927)

    • Purpose: To investigate the effect of lighting intensity on worker productivity.
    • Method:
      • Workers were divided into two groups:
      • One group worked under constant lighting.
      • The other group experienced varying lighting levels.
    • Findings:
      • Surprisingly, productivity increased in both groups, regardless of lighting changes.
      • Even when lighting was dimmed to extremely low levels, output remained high.
    • Conclusion:
      • Productivity was not solely determined by physical conditions.
      • The act of being observed (later termed the Hawthorne Effect) motivated employees to perform better.
      • This experiment challenged the classical view that only financial incentives and working conditions impacted productivity.

  2. First Relay Assembly Test Room Experiment

    • Objective:
      • To examine the relationship between working conditions (such as rest periods, working hours, and incentives) and worker productivity.
    • Method:
      • Five female workers were selected for the study.
      • Researchers altered variables like:
      • Rest periods: Gradually increased the frequency and duration.
      • Work hours: Reduced the length of the workday.
      • Incentives: Introduced piece-rate pay to encourage output.
      • Productivity was measured under various conditions.
    • Key Findings:
      • Increased productivity was observed regardless of whether conditions improved or worsened.
      • The researchers concluded that:
      • Human factors such as attention, recognition, and social interaction significantly influenced performance.
      • The sense of being observed motivated workers to perform better (Hawthorne Effect).
      • The experiment ended in 1929.

  3. Second Relay Assembly Test Room Experiment

    • Objective:
      • To replicate and confirm the initial findings and explore whether the same productivity patterns would emerge.
    • Method:
      • This time, six female workers were selected.
      • The experimental conditions were almost identical to the first experiment:
      • Variations in rest periods, work hours, and incentives.
      • Observation and interviews were more structured in this phase.
    • Key Findings:
      • Again, productivity increased, regardless of changes in working conditions.
      • The researchers confirmed that psychological and social factors (rather than physical conditions) were the primary drivers of productivity.
      • The second experiment validated the conclusions of the first experiment, reinforcing the impact of social cohesion, morale, and attention on performance.
    Why the Hawthorne Experiment Was Repeated

    The experiment was conducted twice to:

    • Verify the initial results and establish their reliability.
    • Determine whether the same productivity patterns were observed under slightly different conditions.
    • Strengthen the validity of the conclusion that social and psychological factors—rather than physical conditions—had a greater impact on productivity.
    Impact of the Two Relay Assembly Experiments
    • The consistency of the results across both experiments solidified the Hawthorne Effect as a fundamental concept in OB.
    • It highlighted the importance of social interaction, recognition, and human relations in motivating employees, revolutionizing workplace management practices.

  4. The Interviewing Program (1928-1930)

    • Purpose: To understand employee attitudes and opinions through interviews.
    • Method:
      • Over 20,000 interviews were conducted.
      • Employees were asked about their work environment, morale, and job satisfaction.
    • Findings:
      • Workers’ emotions and feelings significantly influenced their performance.
      • Non-monetary factors, such as recognition and respect, were crucial motivators.
    • Conclusion:
      • The study revealed the importance of open communication and employee feedback.
      • Emotional factors and perceived fairness were critical to morale and productivity.

  5. The Bank Wiring Observation Room Experiment

    • Purpose: To study informal group dynamics and their effect on individual performance.
    • Method:
      • A group of 14 male workers was observed in a bank wiring room.
      • The goal was to monitor productivity without interference.
    • Findings:
      • Informal groups established their own work norms.
      • Workers restricted output intentionally to avoid exceeding group-established production norms.
      • Peer pressure and group standards dictated individual performance.
    • Conclusion:
      • Informal group dynamics and social cohesion significantly influenced productivity.
      • Group norms could override management-imposed performance standards.

Overall Impact of Hawthorne Studies on OB

  • The Hawthorne Effect: The studies highlighted that employees tend to improve performance when they know they are being observed. This became known as the Hawthorne Effect.
  • Human Relations Movement: The studies marked a shift from scientific management to the human relations approach, emphasizing employee well-being and motivation.
  • Group Dynamics and Informal Networks: Demonstrated the influence of informal group norms on individual behavior, showing that workplace behavior is driven by social factors as much as managerial directives.
  • Employee Morale and Productivity: Emotional well-being and job satisfaction were recognized as key factors in productivity, influencing modern-day HR practices.

Contributing Disciplines to Organizational Behavior

Organizational Behavior is multidisciplinary, drawing from several fields to form its theoretical and practical foundation. Each discipline contributes unique perspectives, theories, and methodologies, enhancing the understanding of human behavior in organizations.

1. Psychology: The Science of Human Behavior

  • Definition: The study of individual behavior and mental processes.
  • Contributions to OB:
    • Motivation Theories:
      • Maslow’s Hierarchy of Needs (1943) – explains employee motivation based on five levels of needs.
      • Herzberg’s Two-Factor Theory (1959) – distinguishes between motivators and hygiene factors.
    • Personality and Individual Differences:
      • The Big Five Personality Traits (openness, conscientiousness, extraversion, agreeableness, and neuroticism) help predict workplace behavior.
    • Perception and Learning:
      • Theories such as classical conditioning (Pavlov) and operant conditioning (Skinner) explain how individuals learn and modify behavior.

2. Sociology: Social Behavior and Structures

  • Definition: The study of groups, social relationships, and organizational structures.
  • Contributions to OB:
    • Group Dynamics: Studies of group cohesion, leadership styles, and team performance shape OB practices.
    • Organizational Culture: Research on norms, values, and social influences in the workplace explains how culture impacts performance.
    • Power and Politics: Examines how hierarchies and authority shape employee interactions and organizational outcomes.

3. Anthropology: Cultures and Human Behavior

  • Definition: The study of human societies, customs, and values.
  • Contributions to OB:
    • Cultural Variations: Helps managers understand the influence of national and corporate cultures on employee behavior.
    • Workplace Diversity: Insights into cross-cultural differences enhance diversity management and inclusivity.
    • Organizational Rituals and Symbols: Examines how traditions and symbols shape workplace identity and cohesion.

4. Political Science: Power and Governance

  • Definition: The study of power, politics, and authority.
  • Contributions to OB:
    • Organizational Power: Examines how power dynamics, coalitions, and political behavior influence decision-making.
    • Conflict and Negotiation: Explores strategies for managing workplace conflicts and negotiation tactics.

5. Economics: Resource Allocation

  • Definition: The study of how individuals and organizations allocate resources.
  • Contributions to OB:
    • Incentives and Rewards: Helps design compensation systems that align with employee motivation.
    • Cost-Benefit Analysis: Evaluates the economic impact of HR practices.

6. Engineering: Systems and Processes

  • Definition: The application of scientific principles to optimize processes.
  • Contributions to OB:
    • Workplace Design: Optimizes workflow and efficiency.
    • Technology Integration: Enhances productivity through automation and innovation.

7. Medicine: Health and Well-being

  • Definition: Focuses on employee health, stress, and well-being.
  • Contributions to OB:
    • Occupational Health and Stress Management: Addresses mental health and stress-related issues in the workplace.

The Hawthorne Studies revolutionized the understanding of human behavior in organizations by emphasizing the importance of social factors, group norms, and employee satisfaction. The interdisciplinary nature of OB, drawing from psychology, sociology, anthropology, political science, economics, engineering, and medicine, provides a comprehensive framework for analyzing and enhancing organizational performance.

Organizational Behavior Models

Organizational Behavior (OB) models define the frameworks that organizations use to manage people and shape behavior. The four major OB models include:

  1. Autocratic Model of OB

    • Description: This model is based on the assumption that employees are inherently lazy and must be directed and controlled. The managerial approach is authoritative, where power is centralized, and obedience is enforced.
    • Key Features:
      • Employees are dependent on their boss.
      • Minimal communication from management to employees.
      • Employees perform only to meet the minimum requirements.
    • Example: Military organizations, where orders must be followed without question, operate under this model.

  2. Custodial Model of OB

    • Description: This model shifts the focus from power to economic security. Organizations provide benefits like healthcare and job security to increase employee loyalty.
    • Key Features:
      • Employees depend on the organization for security rather than the manager.
      • Motivation comes from financial and social security rather than direct supervision.
      • Results in passive cooperation but lacks strong motivation.
    • Example: Large corporations offering pension plans and insurance to retain employees, such as Google’s employee wellness programs.

  3. Supportive Model of OB

    • Description: Leadership, rather than authority or monetary benefits, is the key motivator in this model. Employees are encouraged to participate in decision-making.
    • Key Features:
      • Employees feel recognized and valued.
      • Managers act as coaches rather than bosses.
      • Leads to high employee morale and motivation.
    • Example: Startups with open work cultures where employees have freedom to innovate, like Tesla or Apple.

  4. Collegial Model of OB

    • Description: This model is based on teamwork, where employees and management work collaboratively.
    • Key Features:
      • Employees share responsibility and discipline.
      • Emphasis on mutual respect and partnership.
      • Creates self-motivated employees who work for the organization’s success.
    • Example: Research labs and consultancy firms like McKinsey & Co., where teamwork and knowledge-sharing are key.

S-O-B-C Model of Behavior

The S-O-B-C Model (Stimulus-Organism-Behavior-Consequence) expands on the S-O-R model by incorporating the impact of consequences on behavior.

Components of the S-O-B-C Model

  1. S (Situation/Stimulus): External events or circumstances that trigger behavior.
  2. O (Organism): The individual’s internal state, including emotions, values, and cognitive processing.
  3. B (Behavior): The response to the stimulus, shaped by the organism’s internal processing.
  4. C (Consequences): The result of the behavior, which can reinforce or modify future actions.
  • Example:
    • Situation: An employee receives an email about an urgent deadline.
    • Organism: The employee perceives it as a challenge and feels stressed.
    • Behavior: The employee prioritizes the task and works overtime.
    • Consequence: The employee either gets rewarded with recognition or suffers burnout.

Contingency Models in Organizational Behavior

Contingency models suggest that there is no single best way to manage employees. Instead, the approach depends on various situational factors.

Key Contingency Models

  1. Fiedler’s Contingency Model:
    • Leadership effectiveness depends on the leader’s style (task-oriented or relationship-oriented) and the situation.
    • Example: A crisis requires a task-oriented leader, while team-building requires a relationship-oriented leader.
  2. Path-Goal Theory:
    • Leaders guide employees towards goals by providing clear instructions and removing obstacles.
    • Example: A manager providing extra resources to help employees meet a tight deadline.
  3. Hersey-Blanchard Situational Leadership Model:
    • Leadership style should adapt to employees’ maturity level (low = directive, high = delegative).
    • Example: A new intern needs step-by-step guidance, while an experienced employee requires autonomy.

Challenges and Opportunities in OB

Challenges in Organizational Behavior

  1. Globalization:
    • Organizations must manage culturally diverse teams.
    • Example: Multinational companies like Amazon adjusting policies to suit different regions.
  2. Technological Advancements:
    • AI and automation impact job roles.
    • Example: The rise of remote work due to digital collaboration tools.
  3. Workforce Diversity:
    • Managing employees from different backgrounds requires inclusive policies.
    • Example: Companies implementing diversity training programs.
  4. Ethics and Corporate Social Responsibility:
    • Businesses must balance profitability with ethical responsibility.

Defining Personality

According to Gordon Allport, “Personality is the dynamic organization within the individuals of those psychophysical systems that determine his unique adjustments to his environments.”

Feist and Feist said, “Personality is a pattern of relatively permanent traits and unique characteristics that give both consistency and individuality to a person’s behavior.”

By personality, Ogburn means “the integration of the socio-psychological behavior of the human being, represented by habits of action and feeling, attitudes and opinions.”

According to Lundberg and others, “The term personality refers to the habits, attitudes and other social traits that are characteristic of a given individual’s behavior.”

Lawrence A. Pewin said, “Personality represents those structural and dynamic properties of an individual or individuals as they reflect themselves in characteristic responses to situations.”

Hence, personality is a sum total of ways in which an individual reacts and interacts with others. It is individual differences in characteristic patterns of thinking, feeling, and behaving. It is the supreme realization of the innate habit of a living being. It is an act of courage flung in the face of life, the absolute affirmation of all that constitutes the individual, the most successful adaptation to the universal conditions of existence, coupled with the greatest possible freedom of self-determination. For example, “he has a very pleasant personality” or “he was an influential personality in genetic engineering.”

Characteristics of Personality

Beyond this basic point of agreement, personality has other characteristics or features in common:

  • Personality is something which is unique in each individual.
  • Personality refers particularly to the persistent qualities of an individual.
  • Personality represents a dynamic orientation of an organism to the environment.
  • Personality is greatly influenced by social interactions.
  • Personality represents a unique organization of persistent dynamic and social predisposition.
  • Consistency.
  • Psychological and physiological.
  • It impacts behaviors and actions.
  • Multiple expressions.

Perception in the Workplace

Perception is defined as “a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment (Robbins).”

  1. What one perceives may be different from objective reality. A person coming late on duty may be perceived as casual and tardy, while there may be social problems faced by him.
  2. There is often disagreement among individuals in the organization in relation to pay and allowances, administrative backup, policies and procedures, and the place of work itself. An individual who displays a positive attitude may perceive the above factors as good and conducive to the work environment, while others may consider them inadequate. Employees also compare themselves on job assignment. If a job is assigned to one individual, who may consider the assignment in excess of his job entitlement, on the contrary, if he is not given the job, he may consider it as neglecting him in allocation of responsibilities.
  3. It would often be observed that the manager is rated differently by his subordinates because of the different perception of the individual about the manager. The study of perception is very important in the organization because it is necessary for the manager to perceive individuals correctly irrespective of their status and perceive each situation as close to the real fact or as it exists by interpreting the sensory reflects in the correct way. Sensation and perception are complex phenomena. Perception is an outcome of sensation and is much broader in its nature. Perception involves observing data, selecting, and organizing the data based on sensory reflects and interpreting the same as per the personality attributes of the perceiver. That is why no two individuals can perceive an employee in the same manner; for one, he may be efficient, while for the other, he may be perceived as useless.

Factors Influencing Perception

The Perceiver’s Influence

When an individual looks at an object and attempts to interpret it, what he or she sees is largely influenced by personal characteristics. Perception is a matter of attitude that can be positive or negative. Some workers would feel and perceive that the prevailing working conditions in the organizations are congenial for work and contribute positively, while for others, they would be inadequate and demand improvement. This is indicative of positive and negative attitude patterns. Motive is another factor that plays an important role in perception. Motive is nothing but unsatisfied needs. This exerts considerable influence on perception. A boss who is insecure perceives a subordinate who does well as a threat to his position. Personal insecurity is a threat to personal survival in a job, especially if one is frequently transferred.

The Target’s Influence

Objects and events that are similar to each other tend to group together and have a tendency of perceiving them as a common group, for example, Blacks, Whites, or Indians, etc., irrespective of their different characteristics. Physical and time proximity also leads us to perceiving a situation in a different form than actual reality. An increase in sales volume may be attributed to a newly posted sales manager. In actuality, the increase in sales may have been the outcome of hard work done in the past by sales representatives and public contact.

Situational Influence on Perception

A change in situation leads to incorrect perception about a person. Time is one factor which influences perception. Time is related to work setting and social setting. A person decked up for a party may not be noticeable, but the same dress in the office would be noticed distinctly, though the person has not changed.

Attribution Theory of Perception

In day-to-day life, we come across people with whom we interact. Motives, intentions, beliefs, and attitudes of people have an impact on how they behave. It has been seen that our perception about people is greatly influenced by the assumptions we make about a person and not by reality. There are two factors which have an impact on human behavior. First is internally caused behavior – refers to internal factors on which an individual has full control. Secondly, the externally caused behavior – refers to behavior which has been caused due to external factors and that the individual has no control over it.

The Halo Effect in Perception

The Halo Effect refers to judging an individual based on single characteristics, such as intellectual ability, sociability, and appearance. A sales manager’s visit to a sales territory and consequent increase in sales volume may be attributed to the visit of the sales manager to a particular sales territory. The perceiver in this situation did not notice the cause of increased sales to probably higher demand, change in market forces, subordinate sales employees’ past efforts to woo customers to buy the product, and a host of other factors that go with an increase in sales volume. This type of perception is quite common in any organization, which is called the halo effect in perceiving an individual or situation. A rater may rate a subordinate based on the dominance of a single trait of the subordinate. The halo effect has been very frequently noticed in performance appraisal.

The Contrast Effect in Perception

We do not evaluate a person in isolation. Our reaction to one person is relative to another. During the selection process, an interviewer selects a particular person for a particular job not because he fulfills all requirements, but he is generally selected in relation to the other candidates. The individual selected may be academically, skill-wise, and experience-wise better than those not selected. So it is a comparative or contrast phenomenon of perception. We generally hear people say that Mr. X’s presentation was good, thereby meaning it was better in relation to other people who would have made presentations in a particular session.

Understanding Motivation

Motivation can be described as the internal force that impacts the direction, intensity, and endurance of a person’s voluntary choice of behavior. It consists of:

  • Direction: Focused by goals.
  • Intensity: Bulk of effort allocated.
  • Persistence: Amount of time taken for the effort to be exerted.

Example: A team leader encourages team members to work efficiently.

Features of Motivation

Motivation is an internal feeling; that is, it defines the psychological state of a person. It is a continuous process, and we should make sure that it is not disturbed. A person should be encouraged completely.

Motivation consists of three interacting and dependent elements:

  • Needs: The requirements or deficiency which is created whenever there is physiological imbalance.
  • Drives: The various camps or events organized to motivate the employees and give them new opportunities.
  • Incentives: Employees need to be rewarded for their nice work in order to keep them encouraged.

Importance of Employee Motivation

We need to motivate employees because of the following reasons:

  • Motivated employees are more quality-oriented.
  • Highly motivated employees are more productive as compared to other employees.
  • It helps in achieving three behavior dimensions of human resources, namely:
    • Candidates must be attracted not only to join but also remain in the firm.
    • Employees must perform tasks in a dependable manner.
    • Employees should be creative, spontaneous, and innovative at work.

Maslow’s Hierarchy: Physiological Needs

Every individual needs to take care of the basic requirements required to sustain. These requirements include food to eat, clothing to wear, and shelter to live in. These necessities are relatively independent of each other but are finite.

Maslow’s Hierarchy: Safety Needs

Everybody wants to stay in a protected environment with minimal danger so that they can have a peaceful life. Safety needs basically include protection from physiological danger like accidents and having economic security like bank accounts, health insurance. In an enterprise, it includes job security, salary increment, etc. The managerial practice to satisfy this involves offering pension schemes, provident funds, gratuity, etc.

Maslow’s Hierarchy: Social Needs

We have all heard that man is a social animal; we want to be there with those people where we are loved and we are accepted as we are; nobody wants to be judged. This is a common requirement every human desires. This theory helps managers to think about encouraging their employees by identifying employee needs. In short, it presents motivation as a constantly changing force, expressing itself through the constant need for fulfillment of new and higher levels of needs.

Maslow’s Hierarchy: Esteem Needs

Esteem means the typical human desire to be accepted and valued by others. People often involve themselves in a profession or hobby to gain recognition, earn fame, and respect. According to Maslow, the needs of humans have strict guidelines – the hierarchies rather than being sharply separated, are interrelated. This means that esteem and the consequent levels are not strictly separated but are closely related.

Maslow’s Hierarchy: Self-Actualization

Self-actualization means realizing one’s full potential. Maslow describes this as a desire to complete everything that one can, to become the most that one can be.

McGregor’s Theory X

This theory believes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. According to this theory, management must firmly intervene to get things done. This style of management concludes that workers:

  • Dislike working.
  • Abstain from responsibility and need to be directed.
  • Need to be controlled, forced, and warned to deliver what’s needed.
  • Demand to be supervised at each and every step, with controls put in place.
  • Require to be attracted to produce results, else they have no ambition or incentive to work.

McGregor observed that X-type workers are in fact mostly in the minority, and yet in mass organizations, such as large-scale production environments, Theory X management may be needed and can be unavoidable.

McGregor’s Theory Y

This theory explains a participative style of management, that is, distributive in nature. It concludes that employees are happy to work, are self-motivated and creative, and enjoy working with greater responsibility. It estimates that workers:

  • Take responsibility willingly and are encouraged to fulfill the goals they are given.
  • Explore and accept responsibility and do not need much guidance.
  • Assume work as a natural part of life and solve work issues imaginatively.

In Y-type organizations, people at lower levels are engaged in decision-making and have more responsibility.

Comparing Theory X and Theory Y

Let us now compare both the theories:

Motivation in Theory X vs. Y

Theory X considers that people dislike work, they want to avoid it and do not take responsibilities willingly. While, Theory Y considers that people are self-motivated, and sportingly take responsibilities.

Management Style & Control in Theories X & Y

In Theory X-type organizations, management is authoritarian, and centralized control is maintained. While in Theory Y-type organizations, the management style is participative, employees are involved in decision-making, but the power retains to implement decisions.

Work Organization in Theories X & Y

Theory X employees are specialized and the same work cycle continues. In Theory Y, the work tends to be coordinated around wider areas of skill or knowledge. Employees are also motivated to develop expertise, and make suggestions and improvements.

Herzberg’s Two-Factor Theory of Motivation

In 1959, Frederick Herzberg, a behavioral scientist, proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction, while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction,” and the opposite of “Dissatisfaction” is “No Dissatisfaction.”

Herzberg classified these job factors into two categories:

Hygiene Factors

Hygiene factors are those job factors which are essential for the existence of motivation at the workplace. These do not lead to positive satisfaction for the long-term. But if these factors are absent or non-existent at the workplace, then they lead to dissatisfaction. In other words, hygiene factors are those factors which, when adequate or reasonable in a job, pacify the employees and do not make them dissatisfied. Hygiene factors include:

  • Pay: The pay or salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain.
  • Company Policies and Administrative Policies: The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc.
  • Fringe Benefits: The employees should be offered health care plans (mediclaim), benefits for family members, employee help programs, etc.
  • Physical Working Conditions: The working conditions should be safe, clean, and hygienic. The work equipment should be updated and well-maintained.

Motivational Factors

According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for superior performance. These factors are called satisfiers. These are factors involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit. Motivational factors include:

  • Recognition: The employees should be praised and recognized for their accomplishments by the managers.
  • Sense of Achievement: The employees must have a sense of achievement. This depends on the job. There must be a fruit of some sort in the job.

Limitations of Herzberg’s Two-Factor Theory

The two-factor theory is not free from limitations:

  1. The two-factor theory overlooks situational variables.
  2. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity.
  3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing the same response in a different manner.

Vroom’s Expectancy Theory

The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964. Vroom stresses and focuses on outcomes, and not on needs, unlike Maslow and Herzberg. The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance will be followed by a definite outcome and on the appeal of the outcome to the individual.

The Expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy), and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information, and getting the required support for completing the job. Instrumentality is the faith that if you perform well, then a valid outcome will be there. Instrumentality is affected by factors such as belief in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of the relationship between performance and outcomes.

Thus, the expectancy theory concentrates on the following three relationships:

  • Effort-performance relationship: What is the likelihood that the individual’s effort will be recognized in his performance appraisal?
  • Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards.
  • Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.

Advantages of Expectancy Theory

  • It is based on self-interest individuals who want to achieve maximum satisfaction and who want to minimize dissatisfaction.
  • This theory stresses upon expectations and perception; what is real and actual is immaterial.
  • It emphasizes on rewards or pay-offs.

Limitations of Expectancy Theory

  • The expectancy theory seems to be idealistic because quite a few individuals perceive a high degree of correlation between performance and rewards.
  • The application of this theory is limited as reward is not directly correlated with performance in many organizations. It is related to other parameters also such as position, effort, responsibility, education, etc.

Implications of Expectancy Theory

  • The managers can correlate the preferred outcomes to the aimed performance levels.
  • The managers must ensure that the employees can achieve the aimed performance levels.
  • The deserving employees must be rewarded for their exceptional performance.

McClelland’s Needs Theory

Definition: McClelland’s Needs Theory was proposed by psychologist David McClelland, who believed that the specific needs of the individual are acquired over a period of time and get molded with one’s experience of life. McClelland’s Needs Theory is sometimes referred to as the Three Need theory or Learned Needs Theory. McClelland has identified three basic motivating needs, namely: Need for Power, Need for Affiliation, and Need for Achievement, and along with his associates, performed considerable research work on these basic needs.

Need for Power

What is Power? Power is the ability to induce or influence the behavior of others. People with high power needs seek high-level positions in the organization, so as to exercise influence and control over others. Generally, they are outspoken, forceful, demanding, practical/realistic—not sentimental—and like to get involved in conversations.

Need for Affiliation

People with a high need for affiliation derive pleasure from being loved by all and tend to avoid the pain of being rejected. Since human beings are social animals, they like to interact and be with others where they feel people accept them. Thus, people with these needs like to maintain pleasant social relationships, enjoy the sense of intimacy, and like to help and console others at the time of trouble.

Need for Achievement

McClelland found that some people have an intense desire to achieve. He has identified the following characteristics of high achievers:

  • High achievers take moderate risks, i.e., a calculated risk while performing activities in the management context. This is opposite to the belief that high achievers take high risk.
  • High achievers seek to obtain immediate feedback for the work done by them, so as to know their progress towards the goal.
  • Once the goal is set, the high achiever puts himself completely into the job until it gets completed successfully. He will not be satisfied until he has given his 100% in the task assigned to him.
  • A person with a high need for achievement accomplishes the task that is intrinsically satisfying and is not necessarily accompanied by material rewards.

The Johari Window: Interpersonal Awareness

The Johari Window is a model of interpersonal awareness. It’s a useful tool for improving self-awareness and, through it, our abilities to work well with others. It works by helping us understand the differences between how we see ourselves and how others see us. The premise behind the Johari Window is that our interactions with others are shaped by how we see ourselves and how the person we’re interacting with sees us. If our views are aligned, we’ll have more effective, engaging, and helpful interactions than if our views are differing.

How the Johari Window Works

The Johari Window works by helping individuals visualize the difference between how they see themselves and how others see them. The tool requires individuals to capture their own thoughts on who they are and to get feedback from others on how they are perceived. This information is then used to populate a two-by-two matrix, the Johari Window. The window helps people visualize any disparity between how they see themselves and how others see them. The four quadrants of the window are:

  • “Open” (things known by self and others)
  • “Blind” (things known by others but unknown by self)
  • “Hidden / Facade” (things known by self but unknown by others)
  • “Unknown” (things not known by either self or others)

Four Panes of the Johari Window

Pane 1: Open Area / Arena

Region 1 is also known as the ‘area of free activity’, ‘Open Self/Area’, ‘Free Area’, ‘Public Area’, or ‘Arena’. This is the information about the person—behavior, attitude, feelings, emotion, knowledge, experience, skills, views, etc.—known by the person (‘the self’) and known by the group (‘others’). The aim in any group should always be to develop the ‘open area’ for every person because we are most productive and effective when we work in this area with others, and the group is at its most productive too. The open free area, or ‘the arena’, can be seen as the space where good communications and cooperation occur, free from distractions, mistrust, confusion, conflict, and misunderstanding.

Pane 2: Blind Spot

Region 2 is what is known about a person by others in the group, but is unknown by the person themselves. By seeking or soliciting feedback from others, the aim should be to reduce this area and thereby to increase the open area, i.e., to increase self-awareness. This blind area is not an effective or productive space for individuals or groups. This blind area could also be referred to as ignorance about oneself, or issues about which one is deluded.

Pane 3: Hidden Area / Facade

Region 3 is what is known to ourselves but kept hidden from, and therefore unknown, to others. This hidden or avoided self represents anything that a person knows about themselves—information, feelings, etc.—which is not revealed, or is kept hidden from others. Relevant hidden information and feelings, etc., should be moved into the open area through the process of ‘disclosure’. The aim should be to disclose and expose relevant information and feelings—hence the Johari Window terminology ‘self-disclosure’ and ‘exposure process’, thereby increasing the open area.

Pane 4: Unknown Area

Region 4 contains information, feelings, aptitudes, experiences, etc., that are unknown to themselves and unknown to others in the group. These unknown issues take a variety of forms: They can be feelings, behaviors, attitudes, capabilities, aptitudes, which can be quite close to the surface, or deeper aspects of a person’s personality, influencing their behavior to various degrees. Large unknown areas would typically be expected in younger people, and people who lack experience or self-belief. There are several examples of unknown factors, the first of which is particularly common and relevant in organizations and teams. These include:

  • An ability that is underestimated or untried through lack of opportunity, encouragement, confidence, or training.
  • A natural ability or aptitude that a person does not realize they possess.
  • A fear or aversion that a person does not know they have.
  • An unknown illness.
  • Repressed or subconscious feelings.

Meaning of Communication

Communication is simply the act of transferring information from one place, person, or group to another. Every communication involves (at least) one sender, a message, and a recipient. The transmission of the message from sender to recipient can be affected by a huge range of things. These include our emotions, the cultural situation, the medium used to communicate, and even our location.

The Communication Process

  1. Sender: The sender is a fundamental element in the communication process. The communication is initiated by the sender who creates a message or information for sharing with others.
  2. Encoding: Encoding is a process where the sender converts their messages into a format that can be transmitted to the receiver. It involves transforming concepts and mental images into language, symbols, or signals that the recipient can understand. The process of encoding is where the sender puts their thoughts into a structured and communicable form, allowing for effective transmission.
  3. Message: The message is the informational content that the sender aims to communicate to the receiver. It serves as the core of the communication process, carrying the purpose and meaning that the sender wants to communicate.
  4. Channel: Within the framework of communication, channels serve as the pathways that help messages move from the sender to the receiver. These channels can be verbal or non-verbal and can include one-to-one conversations, voice calls, emails, business reports, social media, video conferences, and more. Each channel has its unique impact on the communication process, influencing factors such as clarity and the emotional connection between the sender and the receiver.
  5. Receiver: The receiver is a critical component of the communication process. The receiver is responsible for receiving and processing the message sent by the sender.
  6. Decoding: Decoding is the process in the communication cycle where the receiver interprets and understands the message sent by the sender.
  7. Response: The response element refers to the immediate reaction or action taken by the receiver based on the message received.
  8. Feedback: Feedback in communication refers to the receiver’s response to the sender’s message.
  9. Noise: Communication noise means any disturbance or interruption that might happen while communicating, hampering the accurate transmission and reception of a message.

Some common types of communication noise include:

  • Semantic Noise: This type of noise occurs when words and symbols used in communication are not understood in the same way by the sender and receiver.
  • Environmental Noise: Environmental noise includes any external factors that interfere with communication, such as loud background noises or physical barriers that disturb the communication process.
  • Psychological Noise: Psychological noise relates to the mental and emotional state of both the sender and receiver. It can include stress or emotional reactions that impact the ability to process and understand the message.
  • Physical Noise: Physical noise refers to tangible obstructions, such as a poor-quality phone line or written text that is difficult to read.

Communication Objectives

  1. Transmitting Information: Effective communication allows for the smooth flow of information, ensuring that all relevant parties receive the necessary details. Whether it’s sharing project updates, disseminating company announcements, or providing instructions, transmitting information is crucial for keeping everyone informed and aligned.
  2. Building Relationships: The objective of building relationships is to foster positive connections, trust, and mutual understanding with individuals or groups. Effective communication is essential for establishing and nurturing strong relationships. Building relationships involves active listening, empathy, and open dialogue to create a sense of connection and trust.
  3. Influencing Others: Effective communication can be a powerful tool for influencing others and driving change. Whether it’s encouraging employees to embrace a new company vision, convincing customers to try a new product, or rallying a team behind a shared goal, persuasive communication is key.
  4. Resolving Conflicts: The objective of resolving conflicts is to facilitate open dialogue and effective communication to address and resolve conflicts. Conflict is a natural part of any relationship or organization. Effective communication helps in managing conflicts by promoting understanding, empathy, and finding common ground for resolution.

Communication Flow by Direction

  • Upward
  • Downward
  • Horizontal
  • Diagonal

Upward Communication

Upward communication is the process in which employees provide feedback to their managers and company leadership. Hearing from employees can help managers avoid losing key talent and achieve better results by restructuring processes. It can also help companies cultivate a more inclusive workplace.

Downward Communication

Communication that flows from a higher level in an organization to a lower level is downward communication. In other words, communication from superiors to subordinates in a chain of command is downward communication.

Horizontal Communication

Horizontal communication, also known as lateral communication, is a business communication strategy where information-sharing moves between departments and employees.

Diagonal Communication

Diagonal or crosswise communication is a type of communication that crosses all organizational units and hierarchical levels. Such communication involves staff members of different departments interacting with each other, regardless of their reporting relationship. This type of communication is not affected by any lines of authority.

Defining Leadership

Leadership is the ability to inspire and motivate others. A great leader is someone who can communicate a clear vision and purpose and inspire their team to work towards that goal.

Types of Leadership Styles

Visionary Leadership

A visionary leader sees the future clearly and compellingly. In addition, they effectively communicate this vision to their team, motivating them to work together to achieve common goals. Furthermore, they generate enthusiasm and a sense of purpose through their persuasive communication skills, encouraging innovation and creativity. To sum up, a visionary leader lays out a plan for success, setting high expectations and encouraging their team to push boundaries and explore new opportunities. Also called: Affiliative Leadership.

Servant Leadership

Service-based leaders prioritize their team’s needs and well-being. They create a supportive environment in which people feel valued and appreciated. Essentially, they understand their team’s concerns and provide guidance and resources to help them succeed by actively listening and empathizing. As a matter of fact, servant leaders focus on developing their team’s skills and talents, fostering a culture of collaboration and service to achieve collective goals.

  • Pros:
    • Fosters a collaborative and supportive work environment.
    • Increased job satisfaction and employee morale.
    • Increased opportunity for employee development.
  • Cons:
    • Slows down decision-making.
    • Potential for exploitation.
    • Organizational goals and financial outcomes can be neglected.

Autocratic Leadership

An autocratic leader wields power and control over decision-making. Besides this, they make unilateral decisions and expect their team members to follow them. Admittedly, this leadership style can be effective when quick and decisive action is required. On the other hand, it limits employee engagement and creativity. Also called: Authoritarian, Coercive, or Commanding Leadership.

  • Pros:
    • Decisions are made faster.
    • Expectations are made clear.
    • Directions are easy to follow.
  • Cons:
    • Employees can feel unmotivated and disengaged.
    • Innovation can be stifled.
    • Dissatisfaction can result in increased turnover.

Transactional Analysis: Ego States

In Transactional Analysis (TA), a psychological framework developed by Eric Berne, an ego state refers to a consistent pattern of feeling, thinking, and behaving. TA identifies three ego states: Parent, Adult, and Child. These states are not merely roles, but rather fully experienced ways of being, influencing how individuals interact with themselves and others.

Breakdown of Ego States

Here’s a breakdown of each ego state:

Parent Ego State

This state is characterized by learned behaviors, thoughts, and feelings from parental figures or authority figures. It can manifest as either a Nurturing Parent (supportive, caring) or a Critical Parent (judgmental, controlling).

Adult Ego State

The Adult ego state operates in the present, processing information logically and rationally, without being influenced by past experiences or emotions. It’s characterized by objective thinking, problem-solving, and clear communication.

Child Ego State

This state reflects the emotions and behaviors of childhood. It can be further divided into:

  • Natural Child: Spontaneous, emotional, and free.
  • Adapted Child: Behaviors shaped by experiences, including compliant and rebellious aspects.
  • Little Professor: Creative, intuitive, and resourceful.