Organisational Behaviour

Chapter 1
Fundamentals and Evolution of Organisational Behaviour

Master of Business Administration
Organisational Behaviour   •   Maters

Fundamentals and Evolution of Organisational Behaviour

Introduction

Organisations are social systems. Their performance depends not only on strategy, technology and finance, but also on how people think, feel, communicate, cooperate and exercise influence. Organisational Behaviour (OB) provides a systematic framework for understanding these processes. For managers, OB is especially important because managerial decisions are implemented through human beings whose motivation, perceptions, values, personalities and relationships shape outcomes.

OB is not the same as common sense or simple people management. It uses concepts and evidence from psychology, sociology, social psychology, anthropology, economics and political science to explain behaviour at three interconnected levels: the individual, the group and the organisation. Its purpose is not to manipulate employees, but to improve organisational effectiveness while protecting dignity, fairness, inclusion and ethical responsibility.

Learning Objectives

After studying this chapter, the reader should be able to:

  • define OB and explain its scope and importance;
  • relate individual characteristics to workplace behaviour and performance;
  • trace the evolution of OB and compare its major theoretical frameworks;
  • explain attitudes, personality, values, perception and motivation;
  • analyse group development, teams and leadership;
  • apply OB concepts to managerial problems using evidence and critical judgement;
  • evaluate the limitations and ethical boundaries of OB models.

1. Meaning, Scope and Importance of OB

Organisational Behaviour is the systematic study of how individuals and groups act within organisations and how organisational systems influence that behaviour. The word “systematic” is important: OB seeks patterns supported by observation, research and reasoned analysis rather than relying only on intuition.

The scope of OB is commonly organised into three levels:

LevelCentral questionsIllustrative concepts
IndividualWhy do employees behave differently?Personality, values, perception, learning, attitudes, motivation
GroupHow do people influence one another?Communication, norms, conflict, power, teams, leadership
OrganisationHow do structures and systems shape conduct?Culture, design, change, technology, human-resource practices

OB has four practical purposes. It helps managers to describe behaviour accurately, understand its causes, predict likely consequences and influence outcomes responsibly. For example, high absenteeism may be described as a pattern, explained through workload or low commitment, predicted to reduce service quality, and addressed through job redesign, supportive supervision or fair attendance policies.

OB matters because organisations face uncertainty, cultural diversity, hybrid work, technological change, ethical scrutiny and pressure for innovation. Understanding behaviour can improve employee well-being, decision quality, retention, collaboration, customer service and productivity. However, OB cannot guarantee a particular result. Human behaviour is probabilistic, context-dependent and influenced by factors beyond managerial control.

OB and the Individual

The individual enters an organisation with a distinctive combination of abilities, personality, values, emotions, experiences and expectations. The organisation, in turn, provides roles, rules, resources, rewards and social relationships. Behaviour emerges from the interaction between the person and the situation. A useful conceptual expression is:

B = f(P, E)

Here, B represents behaviour, P the person and E the environment. This is not a precise predictive equation; it expresses the interactionist assumption that neither personal characteristics nor context alone fully explains conduct. A highly conscientious employee may perform exceptionally in a well-designed role but become frustrated in an environment that provides contradictory instructions and inadequate resources.

Individual differences have managerial value. They support better selection, job design, coaching and inclusion. Yet managers must avoid stereotyping. A personality score or demographic characteristic should never be treated as a complete explanation of capability. Evidence should include behaviour, performance requirements and context.

2. Evolution of Organisational Behaviour

The development of OB reflects changing views of work and human nature.

Classical and Scientific Management

Frederick Taylor’s scientific management emphasised task analysis, standardisation, time study, training and performance-linked rewards. Henri Fayol examined administrative principles such as unity of command and division of work, while Max Weber described bureaucracy based on formal rules, hierarchy, expertise and impersonal authority. These approaches improved efficiency and predictability, but often treated employees primarily as economic resources and underemphasised autonomy, emotions and informal relationships.

Human Relations Movement

The Hawthorne studies, associated with Elton Mayo and colleagues, drew attention to social relations, group norms, attention from supervisors and employee attitudes. Their historical importance lies in shifting attention from purely technical design to the social character of work. Modern scholarship, however, cautions against simplistic interpretations of the studies and against claiming that attention alone explains productivity.

Behavioural Science and Systems Thinking

Psychology contributed research on learning, personality, motivation, perception and decision-making. Sociology contributed group processes, networks, status and institutions; anthropology contributed culture; political science contributed power and conflict; economics contributed incentives and choice. Systems thinking views the organisation as an open system that receives inputs, transforms them through social and technical processes, and produces outputs while interacting with its environment.

Contingency and Evidence-Based Management

Contingency thinking rejects the idea of one best way to manage. The suitability of a leadership style, structure or reward system depends on task, environment, technology, culture and employee characteristics. Evidence-based management combines the best available research, organisational data, professional expertise and stakeholder values. In contemporary organisations, analytics and artificial intelligence may identify patterns in engagement or turnover, but managers must examine data quality, privacy, bias and the meaning behind statistical associations.

3. Theoretical Frameworks of OB

Cognitive Framework

The cognitive framework explains behaviour through mental processes such as beliefs, expectations, interpretation, memory, judgement and decision-making. Employees do not respond mechanically to events; they interpret them. Two employees may receive the same feedback but perceive it differently because they hold different beliefs about fairness, competence or managerial intent.

The cognitive approach is useful for understanding goal setting, attribution, attitudes, perception and expectancy-based motivation. Its limitation is that thoughts may be difficult to observe directly and may not always predict behaviour, particularly under stress, habit or strong situational pressure.

Behavioristic Framework

The behavioristic framework focuses on observable behaviour and its environmental consequences. Behaviour followed by desirable consequences is more likely to be repeated, while behaviour followed by removal of a desirable consequence or an unpleasant consequence may decline. In organisations, recognition, feedback, incentives and corrective action can shape behaviour.

Managers should distinguish positive reinforcement from punishment. Positive reinforcement adds a desirable consequence, such as recognition after excellent service. Punishment applies an undesirable consequence to reduce misconduct. Reinforcement is most effective when consequences are timely, clearly connected to behaviour and administered consistently. Excessive reliance on external rewards can weaken intrinsic motivation, encourage gaming and create ethical problems.

Social Cognitive Framework

Albert Bandura’s social cognitive perspective integrates personal cognition, behaviour and environment. People learn by observing others, anticipating consequences and judging their own capability. Self-efficacy—the belief that one can successfully perform a task—affects effort, persistence and response to setbacks. Observational learning is particularly important when employees see respected colleagues demonstrate safe, ethical or innovative conduct.

The three elements are reciprocal: organisational systems influence behaviour; behaviour changes the environment; and personal beliefs interpret both. A manager seeking to improve safety, for example, should provide equipment and procedures, model safe conduct, recognise reporting of hazards and build employees’ confidence to intervene.

Limitations of OB

OB models have several limitations. First, many findings are probabilistic rather than universal. A theory developed in one country, industry or period may not transfer unchanged to another context. Second, constructs such as commitment, culture and leadership can be measured imperfectly. Third, correlation does not establish causation: engagement and performance may influence each other, or both may be affected by a third variable such as good supervision. Fourth, individual differences and changing environments make prediction uncertain. Fifth, managerial use of behavioural knowledge can become manipulative, invade privacy or reproduce discrimination. Finally, models may oversimplify complex ethical and political realities. Critical managers therefore triangulate research, organisational data and stakeholder perspectives.

4. Models of Organisational Behaviour

Four traditional OB models illustrate different assumptions about managerial authority and employee response.

ModelManagerial assumptionEmployee orientationLikely outcome
AutocraticAuthority and command are centralDependence on the managerCompliance, sometimes minimal effort
CustodialEconomic security and benefits motivateDependence on the organisationSecurity and passive cooperation
SupportiveLeadership should enable performanceParticipation and involvementMotivation and engagement
CollegialWork is a partnershipSelf-discipline and responsibilityCommitment and teamwork

These models are not mutually exclusive descriptions of every organisation. A crisis may require directive coordination, whereas innovation benefits from supportive or collegial practices. Contemporary practice tends toward empowerment, psychological safety, participation and accountability, while recognising that structure and authority remain necessary.

5. Attitudes and Emotional Intelligence

An attitude is a relatively enduring evaluation of a person, object, event or situation. Attitudes influence attention, interpretation, intention and behaviour. Positive attitudes are not equivalent to constant optimism; a constructive employee may critically challenge an unsafe or unethical decision.

Components of Attitude

The ABC model identifies three components:

  • Affective: feelings or emotions, such as satisfaction or anxiety;
  • Behavioural: an intention or tendency to act, such as willingness to cooperate;
  • Cognitive: beliefs or thoughts, such as the belief that promotion procedures are fair.

The components may conflict. An employee may believe that a new system is useful, feel anxious about learning it and still intend to attend training. Attitude change therefore requires more than slogans; it may require credible information, participation, supportive practice and consistent managerial behaviour.

Attitude and Behaviour

Attitudes can influence behaviour, but the relationship is not automatic. The strength of the relationship increases when the attitude is specific to the behaviour, personally important, easily recalled and supported by favourable circumstances. Organisational constraints, social norms and perceived control can prevent an employee from acting according to an attitude. Job satisfaction, organisational commitment and employee engagement are important job attitudes. Satisfaction concerns evaluation of one’s job; commitment concerns attachment to the organisation; engagement concerns energetic, absorbed involvement in work.

Right Attitude and Emotional Intelligence

“Right attitude” should not mean unquestioning agreement. In professional settings it involves integrity, learning orientation, accountability, respect, resilience and willingness to collaborate. Emotional intelligence (EI) is the capability to perceive, understand, regulate and use emotions in oneself and in relationships. Its commonly discussed dimensions include self-awareness, self-management, social awareness and relationship management.

EI can be developed through reflective journals, feedback, perspective-taking, active listening, pause-and-plan techniques, conflict practice and coaching. A manager who notices irritation before responding to a complaint can regulate emotion, understand the employee’s concern and choose an appropriate response. EI is not a substitute for technical competence, nor should it be used to demand emotional conformity or suppress legitimate dissent.

Barriers to Changing Attitudes

Barriers include habit, selective exposure to confirming information, fear of loss, distrust of management, identity threat, peer pressure, cognitive dissonance and inconsistent organisational signals. Change is more likely when leaders explain the rationale, involve affected employees, provide resources, demonstrate consistency, permit questions and reinforce new behaviour fairly.

6. Personality and Values

Personality is the relatively stable pattern of thoughts, emotions and behaviours that distinguishes one person from another. It matters for performance because traits influence effort, social interaction, adaptability, learning and response to stress. Personality does not determine performance independently of job demands, skills, incentives and context.

The Myers–Briggs Type Indicator (MBTI) classifies preferences across four pairs: extraversion–introversion, sensing–intuition, thinking–feeling and judging–perceiving. It can support reflection and discussion of work preferences, but its categorical types and test–retest limitations make it unsuitable as a sole basis for selection, promotion or diagnosis.

The Big Five model treats personality as dimensions:

DimensionTypical workplace relevance
Openness to experienceCuriosity, creativity and receptiveness to change
ConscientiousnessDependability, organisation and goal persistence
ExtraversionAssertiveness, energy and social initiative
AgreeablenessCooperation, empathy and conflict reduction
Emotional stability (opposite of neuroticism)Calmness and resilience under pressure

Conscientiousness often predicts reliable performance across many occupations, but excessive conscientiousness may reduce flexibility. Openness supports innovation; agreeableness supports cooperation but may make difficult confrontation less likely; extraversion can help in influence-heavy roles but is not required for leadership. Values are enduring beliefs about what is desirable, such as integrity, achievement, equality or security. Person–organisation and person–job value fit can support commitment, but excessive similarity can reduce diversity of thought. Managers should distinguish ethical values from mere cultural conformity.

7. Perception and Social Judgement

Perception is the process by which individuals select, organise and interpret sensory and social information. The perceptual process involves exposure to stimuli, selective attention, organisation, interpretation and behavioural response. Perception is shaped by the perceiver, the target and the situation.

Perceiver factors include motives, expectations, experience, mood, personality and culture. Target factors include novelty, ambiguity, intensity, status and similarity. Situational factors include time pressure, physical setting, role expectations and organisational climate.

Selective perception occurs when people notice information that fits their needs, expectations or beliefs and overlook other information. It can lead a manager to remember a subordinate’s mistakes while ignoring improvement. Stereotyping involves assigning characteristics to a person because of perceived membership in a social category. The halo effect occurs when one salient positive characteristic shapes the overall evaluation; the horn effect is the corresponding negative distortion. These biases can affect recruitment, appraisal and promotion.

Attribution theory explains how people infer causes of behaviour. Internal attribution assigns behaviour to ability, effort or personality; external attribution assigns it to task difficulty, resources or circumstances. Three cues are commonly considered: distinctiveness (does the person behave this way in other situations?), consensus (do others behave similarly?) and consistency (does the person behave this way repeatedly?). Managers should seek evidence before judging. The fundamental attribution error is the tendency to overemphasise personal causes for others’ behaviour, while self-serving bias leads people to attribute success internally and failure externally.

8. Motivation

A motive is an internal need, desire or reason that energises behaviour. Motivation is the process that gives behaviour direction, intensity and persistence. Performance, however, also depends on ability, resources, role clarity and opportunity. A motivated employee cannot perform effectively without training or necessary tools.

Maslow’s Need Hierarchy

Maslow proposed physiological, safety, belongingness, esteem and self-actualisation needs, often represented hierarchically. The theory suggests that unmet lower-level needs demand attention before higher-level growth needs become dominant. In practice, needs overlap and individuals do not always progress in a fixed sequence. Managers can therefore use the model as a diagnostic lens rather than a universal law: fair pay and safety remain important, while autonomy, meaningful work and development may support higher-order motivation.

Herzberg’s Two-Factor Theory

Herzberg distinguished hygiene factors—salary, policies, supervision, working conditions and security—from motivators such as achievement, recognition, responsibility, advancement and meaningful work. Poor hygiene creates dissatisfaction, but improving hygiene alone may not create strong satisfaction. Enrichment should increase responsibility, feedback, skill variety and significance. The theory has influenced job design, although the separation between factors may vary across people and cultures.

Vroom’s Expectancy Theory

Vroom argues that motivation depends on three beliefs:

Motivational Force = Expectancy × Instrumentality × Valence

Expectancy is the belief that effort will produce performance; instrumentality is the belief that performance will produce an outcome; valence is the value of that outcome. If any factor is effectively zero, motivation for that outcome is weak. Managers can improve expectancy through training and resources, instrumentality through credible performance–reward links, and valence through understanding individual preferences. The model assumes that people make at least partly deliberate evaluations and that outcomes are valued.

Porter–Lawler Model

The Porter–Lawler model extends expectancy theory. Effort is influenced by the value of rewards and perceived effort–reward probability. Performance is shaped by effort, ability and role perception. Performance can produce intrinsic rewards, such as accomplishment, and extrinsic rewards, such as pay or recognition. Satisfaction results when rewards are perceived as equitable. Thus, satisfaction is not simply the cause of performance; effective performance and fair rewards can also produce satisfaction.

Equity Theory

Equity theory proposes that employees compare their perceived input–outcome ratio with that of a referent person or group. Inputs may include effort, experience and qualifications; outcomes may include pay, recognition and flexibility. Perceived inequity can lead to reduced effort, requests for change, withdrawal, changing the comparison, or leaving. Managers should communicate criteria, audit pay and opportunities, explain differences transparently and avoid assuming that equal treatment always means fair treatment. Equity is a perception, so procedural and interpersonal justice matter as well as distributive outcomes.

9. Foundations of Group Behaviour

A group is two or more interdependent people who interact to achieve a purpose or satisfy a need. Group behaviour includes communication, norms, roles, status, cohesion, conflict and decision-making. Group dynamics refers to the forces and processes that influence how a group forms, operates and changes.

Groups may be formal or informal, permanent or temporary, functional or cross-functional, command or task groups, interest groups or friendship groups. Groups provide support, knowledge and coordination, but may also create conformity, social loafing, groupthink and conflict. Managers should clarify purpose, roles, decision rights and accountability.

Five-Stage Model of Group Development

Tuckman’s model identifies forming, storming, norming, performing and adjourning. In forming, members are cautious and seek structure. Storming involves disagreement over goals, roles and influence. During norming, shared expectations and trust develop. Performing is characterised by effective coordination and task focus. Adjourning occurs when a temporary group completes its work and members transition. Groups may move backwards when membership, leadership or task conditions change; development is not strictly linear.

10. Managing Teams

A work team is a group whose members have complementary skills, a shared purpose, interdependent tasks and mutual accountability. Teams are valuable when problems require varied expertise, rapid learning, innovation or coordinated execution. They are not automatically superior to individual work: coordination costs, conflict and social loafing can make a team inefficient for simple independent tasks.

Organisations use problem-solving, self-managed, cross-functional, project, virtual and global teams. Developing an effective team requires a compelling purpose, appropriate membership, clear roles, agreed norms, psychological safety, reliable communication, resources and accountable performance measures. Team-building should not be reduced to social events; it should address real work processes, decision rules, conflict and learning.

Team effectiveness can be assessed through task results, member satisfaction, learning and capacity to work together in the future. Managers can strengthen teams by selecting complementary competence, setting measurable goals, using inclusive meetings, documenting decisions, reviewing performance and addressing conflict early. Virtual teams additionally need communication protocols, time-zone sensitivity, digital inclusion and explicit trust-building.

11. Leadership

Leadership is the process of influencing people to understand and commit to shared purposes and to coordinate action toward them. It is distinct from formal authority: a person without a title may exercise leadership, while a titled manager may fail to influence. Management typically emphasises planning, organising and control; leadership emphasises direction, meaning, influence and change, although the roles overlap.

Leadership Styles

Autocratic leadership centralises decisions and may be useful in emergencies or where rapid compliance is essential. Democratic or participative leadership involves followers and can improve commitment and information quality. Laissez-faire leadership provides substantial autonomy but can become neglect when direction and support are absent. Effective leaders adjust participation to competence, urgency, risk and employee expectations rather than treating one style as universally best.

Trait and Contingency Approaches

The trait approach studies characteristics associated with leadership, including intelligence, integrity, self-confidence, determination, sociability and emotional stability. Traits can increase leadership potential but do not guarantee effectiveness; behaviour and situation matter.

Contingency approaches argue that effectiveness depends on context. Fiedler’s model links leader orientation to situational favourability, including leader–member relations, task structure and position power. Hersey and Blanchard’s situational perspective proposes adjusting directing, coaching, supporting and delegating to follower readiness or development. Path–goal theory suggests that leaders clarify paths, remove obstacles and align support with task and follower needs. These models encourage diagnosis, although some measures and classifications have received mixed empirical support.

Contemporary Leadership

Contemporary leadership emphasises ethics, inclusion, shared influence, learning, digital collaboration and responsiveness to complex environments. Transactional leadership clarifies exchanges, goals and contingent rewards. Transformational leadership motivates followers to transcend immediate self-interest through an inspiring vision, intellectual stimulation, individual consideration and idealised influence. It can support innovation and change, but charisma without ethical restraint can produce dependency, manipulation or misconduct.

Servant leadership prioritises follower development and stewardship; authentic leadership emphasises self-awareness, relational transparency, balanced processing and internalised moral standards; inclusive leadership invites contribution from diverse members. Distributed leadership recognises that influence can be shared across expertise and networks. Contemporary leadership therefore combines direction with listening, accountability with empowerment, and performance with ethical responsibility.

Global and Indian Illustrations

Indra Nooyi’s leadership at PepsiCo is frequently discussed for linking business performance with longer-term health and sustainability concerns, illustrating strategic vision and stakeholder orientation. Satya Nadella’s transformation of Microsoft is associated with a growth mindset, learning culture and collaboration, illustrating how cultural change can accompany strategy. Ratan Tata is widely recognised for values-based stewardship, philanthropy and trust in a diversified Indian business group. Kiran Mazumdar-Shaw’s development of Biocon illustrates entrepreneurial persistence, scientific orientation and innovation under resource and legitimacy constraints. These are not simple success formulas; outcomes also reflect teams, institutions, timing, resources and market conditions. Their value as cases lies in analysing choices, values, context and consequences rather than copying personalities.

12. Illustrative Case: Rebuilding a Hybrid Service Team

Background

A fictional Indian financial-services company introduced hybrid work after rapid expansion. Customer complaints increased, experienced employees reported overload, and new employees felt excluded from decisions. The manager initially proposed attendance monitoring and individual incentives.

Analysis

An OB diagnosis revealed several interacting issues. Selective perception caused the manager to interpret delays as low effort. Expectancy was low because employees lacked training in a new customer platform. Instrumentality was weak because performance ratings were delayed and rewards were unclear. The team was in a renewed storming stage after membership changes. Psychological safety was low, and equity concerns arose because remote employees believed visible office attendance was rewarded more than outcomes.

Approach

The manager conducted confidential listening sessions, analysed service data, clarified role expectations and trained staff. A team charter established response standards, meeting norms and escalation rules. Performance measures focused on service quality and resolution rather than physical visibility. Weekly hybrid meetings included structured participation, and peer recognition highlighted learning and customer recovery. The manager modelled openness by acknowledging earlier misdiagnosis and invited challenge.

Outcome

After three months, response times improved and employees reported clearer roles and greater fairness. The company did not attribute the improvement to one intervention; it used repeated measures and employee feedback. Some workload problems remained and required staffing changes.

Learning Points

The case demonstrates that behaviour is multicausal. Effective OB practice combines perception correction, motivation design, group development, leadership, evidence and ethical attention to fairness. Monitoring alone would likely have treated symptoms rather than causes.

13. Managerial and Ethical Implications

Managers should use OB as a diagnostic discipline, not as a collection of labels. Begin with a clearly defined problem; gather multiple forms of evidence; distinguish facts, interpretations and assumptions; consider individual, group and structural causes; involve affected stakeholders; test interventions; and review unintended consequences. Behavioural data should be collected proportionately, securely and transparently. AI-based hiring, sentiment analysis or productivity monitoring requires attention to consent, privacy, explainability, data bias and the right to challenge automated conclusions. Respect for autonomy, non-discrimination and psychological safety is central to responsible OB.

Chapter Summary

Organisational Behaviour systematically examines individual, group and organisational behaviour. It helps managers describe, explain, predict and influence workplace outcomes, while recognising that behaviour is shaped by interactions between people and environments. OB evolved from efficiency-oriented classical management through human relations, behavioural science, systems, contingency and evidence-based perspectives.

Cognitive theories emphasise interpretation and expectation; behavioristic theories emphasise consequences; and social cognitive theory integrates person, behaviour and environment through observation and self-efficacy. Attitudes, personality, values and perception shape workplace conduct, but none should be used as simplistic labels. Motivation theories explain needs, work conditions, expectancy, rewards and perceived equity. Groups develop through forming, storming, norming, performing and adjourning, while effective teams require interdependence, clarity, trust and accountability. Leadership may be trait-based, contingent, transformational, servant, authentic, inclusive or distributed. Across all topics, evidence, context, ethics and critical evaluation are essential.

Key Terms

Organisational Behaviour: Systematic study of behaviour in organisational contexts.

Interactionist perspective: View that behaviour results from person–environment interaction.

Cognitive framework: Explanation based on beliefs, expectations and mental processes.

Behavioristic framework: Explanation based on observable behaviour and consequences.

Social cognitive theory: Framework integrating personal cognition, behaviour and environment.

Attitude: A relatively enduring evaluation of an object, person or event.

Emotional intelligence: Ability to perceive, understand and regulate emotions.

Personality: Stable pattern of thoughts, feelings and behaviours.

Values: Enduring beliefs about what is desirable or important.

Big Five: Five-dimensional model of personality.

Perception: Selection, organisation and interpretation of information.

Attribution: Inference about the causes of behaviour.

Motivation: Process giving behaviour direction, intensity and persistence.

Expectancy: Belief that effort will lead to performance.

Equity: Perceived fairness of input–outcome comparisons.

Group dynamics: Forces and processes affecting group functioning.

Psychological safety: Shared belief that interpersonal risk-taking is safe.

Transformational leadership: Leadership that inspires vision, development and change.

Evidence-based management: Use of research, data, expertise and stakeholder values.

Review Questions

Short Answer Questions

  1. Define Organisational Behaviour and identify its three principal levels of analysis.
  2. Distinguish cognitive, behavioristic and social cognitive frameworks.
  3. Explain the three components of an attitude.
  4. What is the halo effect, and how can it distort appraisal?
  5. State the five stages of group development.

Long Answer Questions

  1. Critically evaluate the evolution from scientific management to contemporary evidence-based OB.
  2. Explain Maslow’s, Herzberg’s, Vroom’s and Equity theories and compare their managerial implications.
  3. Discuss personality, values and perception as determinants of workplace performance.
  4. Explain the conditions required for effective work teams in hybrid organisations.
  5. Compare trait, contingency and transformational approaches to leadership.

Analytical / Application Questions

  1. A technically capable employee is underperforming after a restructuring. Use the person–environment perspective, attribution theory and expectancy theory to diagnose the problem and propose an ethical intervention.
  2. A diverse project team is experiencing conformity, silence and missed deadlines. Analyse the problem using group development, psychological safety, perception and team-effectiveness concepts.
  3. Design an evidence-based leadership and motivation plan for a hybrid Indian organisation facing high turnover. Specify the data you would collect, possible interventions and ethical safeguards.

Multiple Choice Questions with Answers

Question 1

Which statement best expresses the interactionist view of organisational behaviour?

A. Behaviour is determined only by personality.

B. Behaviour results from the interaction of the person and the environment.

C. Behaviour is determined only by formal organisational rules.

D. Behaviour cannot be studied systematically.

Correct Answer: B. Behaviour results from the interaction of the person and the environment.

Question 2

Which framework emphasises learning through observing respected role models and developing self-efficacy?

A. Classical bureaucracy

B. Behavioristic framework only

C. Social cognitive framework

D. Equity framework

Correct Answer: C. Social cognitive framework

Question 3

Which is the cognitive component of an attitude?

A. Feeling anxious about a policy

B. Intending to oppose a policy

C. Believing that a policy is unfair

D. Avoiding a meeting

Correct Answer: C. Believing that a policy is unfair

Question 4

Which personality dimension is most directly associated with dependability and goal persistence?

A. Conscientiousness

B. Openness

C. Extraversion

D. Agreeableness

Correct Answer: A. Conscientiousness

Question 5

A manager evaluates an employee’s entire performance as excellent because the employee is highly articulate. This is an example of:

A. Selective exposure

B. Halo effect

C. External attribution

D. Social loafing

Correct Answer: B. Halo effect

Question 6

In Vroom’s expectancy theory, instrumentality is the belief that:

A. Effort will produce performance

B. Performance will produce a valued outcome

C. An outcome has no personal value

D. Ability is fixed

Correct Answer: B. Performance will produce a valued outcome

Question 7

Which factor is classified by Herzberg as a motivator?

A. Company policy

B. Working conditions

C. Achievement

D. Job security

Correct Answer: C. Achievement

Question 8

During which stage of Tuckman’s model do disagreements over roles and influence commonly occur?

A. Forming

B. Storming

C. Norming

D. Adjourning

Correct Answer: B. Storming

Question 9

Which leadership approach argues that effective behaviour depends on situational conditions?

A. Trait approach

B. Contingency approach

C. Bureaucratic approach

D. Economic approach

Correct Answer: B. Contingency approach

Question 10

Which practice best supports ethical use of employee behavioural data?

A. Collecting all available data without informing employees

B. Using automated scores as the sole basis for promotion

C. Ensuring transparency, proportionality, privacy and opportunities to challenge decisions

D. Publishing individual sentiment scores to increase pressure

Correct Answer: C. Ensuring transparency, proportionality, privacy and opportunities to challenge decisions

Organisational Behaviour
Chapter 1 of 13