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Title: Organizational
Behaviour Practical
Name: Harshita Agarwal
Roll No.: 22501039
Course: B.A. Program
(ASPSM + Psychology)
th rd
Semester: 5 Sem.; 3 Year
Submitted To: Prof. Akanksha
Dochania
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Index
S. No Title Date Remarks
1. Introduction to
Organizational
Psychology
2. Analysis of The
Harvard Case
Study
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INTRODUCTION TO ORGANIZATIONAL
PSYCHOLOGY

Industrial/Organizational Psychology: Definition

Industrial/Organizational (I/O) psychology, also known as occupational psychology, involves

the application of psychological principles and research methods to the workplace, aiming to

improve both employee well-being and organizational performance. The field is typically

divided into two main branches:

Industrial Psychology (Personnel Psychology): Focuses on individual employee-related

aspects such as recruitment, training, job performance, and work analysis. Industrial

psychologists work to optimize employee productivity and selection, often through tools like

psychometric tests.

Organizational Psychology: Concentrates on the social and emotional well-being of

employees, covering topics like motivation, leadership, and organizational culture.

Organizational psychologists help build supportive environments, promoting collaboration

and innovation.

The unique nature of I/O psychology lies in its balance between the employer’s needs (such

as efficiency and talent management) and the employee’s well-being (including job

satisfaction and mental health).

Difference Between I/O Psychology and Human Resource

Management
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While Industrial/Organizational (I/O) Psychology and Human Resource Management (HRM)

both focus on optimizing human capital, they differ in their approach, goals, and theoretical

underpinnings. Below is a table illustrating the key differences between the two disciplines:

Aspect I/O Psychology Human Resource Management (HRM)

Focus Emphasizes applying Focuses on managing the

psychological theories and administrative aspects of employee

research to improve relations, recruitment, and

organizational effectiveness and compensation.

employee well-being.

Objective Enhances both organizational Aims to improve productivity by

performance and employee effectively managing human resources

satisfaction by improving the through recruitment, training, and

psychological environment. benefits management.

Research vs. Research-driven, focuses on Practice-oriented, focusing on strategy

Application psychological testing, implementation and operational tasks

assessments, and empirical such as payroll and employee

evidence. engagement programs.

Scope of Broader, includes motivation, Narrower, dealing with policy

Influence leadership development, and job implementation, compliance, and

satisfaction. employment law.

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Use of Uses psychological principles Utilizes management practices such as

Psychology like motivation theories (e.g., performance reviews and compensation

Maslow's Hierarchy of Needs) structures.

and behavior models.

Training and Requires extensive training in Focuses on business and management

Education psychological theories, research education, often including labor laws

methods, and assessments. and HR-specific training.

Example in An I/O psychologist in an IT An HR manager at Reliance Industries

India company like Infosys would would focus on implementing

study job satisfaction, employee benefits programs,

motivation, and leadership recruitment strategies, and compliance

development. with labor laws.

While there is overlap, I/O psychology emphasizes research-based approaches to

understanding human behavior at work, while HRM is more operational, focusing on

policies, management practices, and administrative functions.

Scope of I/O Psychology

The scope of I/O psychology is vast, encompassing several critical areas:

 Employee Recruitment and Selection: I/O psychologists help organizations develop

methods for selecting the best candidates for job roles. This involves creating valid

and reliable psychological tests, conducting interviews, and analyzing job

performance. In India, psychometric testing is frequently used by large corporations

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such as Infosys and Tata Consultancy Services (TCS) to assess job applicants’

cognitive abilities and personality traits. The adoption of such tools is aimed at

improving both hiring efficiency and reducing turnover rates.

 Job Analysis and Job Design: This involves the systematic study of job roles to

understand the skills and qualifications required. Job analysis is essential for

developing job descriptions, training programs, and performance appraisal systems.

For instance, a company like Reliance Industries may conduct job analyses to better

understand the evolving skill requirements in its diverse sectors, such as

telecommunications or retail.

 Training and Development: I/O psychologists design and evaluate training programs

to enhance employee performance. The training is tailored to the specific needs of

both the organization and the individual. Companies like Wipro offer extensive

employee training programs that focus not just on technical skills but also on

interpersonal communication, emotional intelligence, and leadership development.

 Performance Appraisal and Feedback Systems: An essential aspect of I/O

psychology is developing systems for evaluating employee performance. This

includes 360-degree feedback mechanisms, where employees receive feedback from

supervisors, peers, and subordinates. Properly structured appraisal systems can help

identify areas for improvement and development, fostering both individual and

organizational growth.

 Employee Motivation and Job Satisfaction: Understanding what drives employee

motivation is key to fostering job satisfaction and retention. I/O psychologists often

work with organizations to implement strategies based on psychological theories such

as Maslow's Hierarchy of Needs or Herzberg’s Two-Factor Theory. For example, in

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India’s competitive IT sector, companies like HCL Technologies use employee

engagement surveys to understand employee motivation, aligning organizational

goals with individual aspirations.

 Leadership and Organizational Development: I/O psychologists study leadership

styles and their effects on organizational culture and employee behavior. They help

organizations identify and nurture potential leaders, promote ethical decision-making,

and facilitate organizational change. Companies like Tata Steel have implemented

leadership programs that emphasize emotional intelligence, participative decision-

making, and ethical leadership, contributing to their long-term sustainability.

 Work-Life Balance and Employee Well-being: Work-life balance is an area of

increasing concern in fast-growing economies like India. I/O psychologists work on

developing policies and interventions aimed at reducing stress, preventing burnout,

and promoting employee well-being. For example, Cognizant offers flexible work

schedules and mental health resources, designed to help employees balance the

demands of work and life effectively.

 Diversity and Inclusion: I/O psychologists also play a critical role in fostering

diversity and inclusion within organizations. In India, initiatives such as Infosys’

"Women in Tech" program promote gender diversity in traditionally male-dominated

fields, improving organizational culture and enhancing team performance.

Historical Background of Organizational Psychology

The development of organizational psychology has been shaped by historical events,

industrial revolutions, and the evolving nature of work. While the field gained prominence in
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the West during the early 20th century, India saw a more gradual adoption of these ideas,

adapting Western concepts to fit its cultural and industrial landscape.

Early Beginnings: Scientific Management and Efficiency (Late 19th and Early

20th Century)

The origins of organizational psychology can be traced back to the early industrial revolution

when scholars and practitioners began exploring ways to optimize worker productivity. One

of the pioneers in this area was Frederick Winslow Taylor, whose Scientific Management

theory emphasized increasing efficiency by standardizing tasks, improving workflows, and

eliminating unnecessary movements. Taylor’s studies in the 1910s led to time-and-motion

studies, which were used to break down jobs into their constituent parts, making tasks simpler

and more efficient.

Taylor’s approach laid the groundwork for early applications of psychology in the workplace.

The primary focus during this time was on improving productivity and efficiency with little

attention paid to the worker's emotional or social well-being.

Hawthorne Studies and the Human Relations Movement (1920s-1930s)

The turning point in the history of organizational psychology came with the Hawthorne

Studies, conducted between 1924 and 1932 at Western Electric's Hawthorne Works in

Chicago. Led by Elton Mayo, these studies began by examining how physical working

conditions (e.g., lighting) affected worker productivity. However, the researchers soon
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realized that it was not the changes in physical conditions but rather the social environment

and attention given to workers that influenced their productivity.

The Hawthorne Effect—the phenomenon where people improve their behavior simply

because they know they are being observed—highlighted the importance of social and

psychological factors in the workplace. This led to the development of the Human Relations

Movement, which emphasized the importance of interpersonal relationships, employee well-

being, and leadership styles in organizational success.

Post-War Developments: Growth of I/O Psychology (1940s-1970s)

The field of I/O psychology grew substantially after World War II, as psychologists were

called upon to assist with personnel selection and placement in military and industrial

settings. During this period, several psychological theories were applied to the workplace,

such as Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory, which explored

factors influencing motivation and job satisfaction.

In India, the post-independence era saw the rapid development of public-sector enterprises,

which prompted a growing need for understanding workplace dynamics. Pioneers like

Durganand Sinha, who played a significant role in adapting Western psychological theories

to the Indian context, emphasized the importance of considering India’s socio-cultural

diversity when applying organizational psychology principles. Sinha argued that traditional

hierarchical work structures in India required a unique approach, blending Western

methodologies with indigenous values.

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Contemporary I/O Psychology: Globalization and Technological Advancements

(1980s-Present)

With globalization and the rise of technology, the nature of work has undergone a profound

transformation, requiring new approaches in I/O psychology. Factors such as remote working,

gig economy jobs, and the integration of AI in workplaces have led to new challenges and

opportunities for I/O psychologists. The use of data analytics and AI-driven tools for talent

acquisition and employee engagement has become increasingly common in organizations

worldwide, including India.

In the Indian context, the rise of IT and service-based industries in the 1990s and 2000s

brought new challenges such as managing large and diverse workforces, maintaining work-

life balance, and promoting innovation. I/O psychology has played an essential role in

addressing these challenges. For example, organizations like Infosys and TCS have adopted

psychological principles to create leadership development programs, promote mental health,

and foster a culture of innovation.

Organizational psychology has evolved from a focus on productivity and efficiency in the

early 20th century to a broader, more holistic understanding of the workplace, emphasizing

employee well-being, motivation, and organizational culture. As industries continue to grow

and diversify, particularly in developing countries like India, the role of I/O psychologists

will become even more critical in shaping the future of work.

Organizational Ethics: A Comprehensive Overview

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Organizational ethics refers to the principles and standards that guide the behavior of

individuals within an organization. It encompasses a broad range of moral and ethical issues,

such as fair treatment of employees, ethical decision-making, social responsibility,

transparency, and respect for stakeholders. Ethical practices in organizations contribute to

building a culture of trust, integrity, and accountability, which are essential for long-term

success and sustainability.

In today’s business environment, organizational ethics plays a crucial role in shaping a

company’s reputation and fostering a positive relationship with employees, customers,

investors, and the broader community. Ethical behavior can lead to better business

performance, employee satisfaction, and customer loyalty, while unethical practices can

damage a company's reputation, leading to legal issues, employee turnover, and financial

losses.

Importance of Organizational Ethics

Organizational ethics impacts multiple areas of an organization, including:

 Corporate Governance: Ethical practices ensure that decisions are made

transparently and align with legal and moral standards. Corporate governance

involves maintaining a balance between the interests of stakeholders, management,

and the board of directors. Ethical governance practices help prevent corruption and

misuse of power within the organization.

 Employee Behavior: A strong ethical framework guides employees in making

decisions that align with the organization’s values and ethical guidelines. It fosters an
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atmosphere of trust and cooperation, reducing conflicts and unethical behavior, such

as dishonesty, fraud, or corruption.

 Legal and Regulatory Compliance: Organizations are required to comply with

various laws and regulations, including labor laws, environmental laws, and anti-

corruption laws. Ethical practices ensure that organizations operate within the

boundaries of the law and take responsibility for their actions, avoiding potential legal

and financial penalties.

 Reputation and Trust: A reputation for ethical behavior can attract investors,

customers, and employees who value integrity and social responsibility. Companies

that are perceived as unethical may face boycotts, loss of customer trust, and reduced

profitability.

 Long-Term Sustainability: Ethical behavior promotes long-term sustainability by

fostering a culture of social responsibility and environmental stewardship. Companies

that prioritize ethical decision-making and corporate social responsibility (CSR) are

better equipped to respond to changing societal expectations and market conditions.

Ethical Theories in Organizational Settings

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Ethical Key Idea Application in Organizations

Theory

Utilitarianism Focuses on maximizing the Decisions such as layoffs may be

greatest good for the greatest justified if they save a company and

number. benefit the remaining employees.

Deontological Emphasizes adherence to A company should not engage in

Ethics moral duties and rules, deceptive advertising, even if it

regardless of consequences. increases sales, because deception

is inherently wrong.

Virtue Ethics Focuses on developing Encourages employees to act in

moral character and virtues accordance with ethical virtues,

like honesty, integrity, and promoting integrity in business

fairness. decisions.

Justice and Stresses fairness, equality, Ensures equal treatment and fair

Fairness and impartiality in decision- opportunities for all employees,

making processes. promoting equity in promotions and

salary increments.

Ethical Issues in Organizational Behavior

Organizational ethics touches on a wide range of issues, some of the most prominent being:

 Employee Treatment and Fairness: Ethical organizations strive to treat employees

fairly, ensuring that they are paid equitably, have access to career development

opportunities, and are protected from harassment or discrimination. Fair treatment

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includes providing a safe working environment, fair wages, and policies that promote

work-life balance. In India, the Sexual Harassment of Women at Workplace

(Prevention, Prohibition, and Redressal) Act, 2013 was a landmark regulation

aimed at creating safer working conditions for women. Despite its introduction, many

Indian workplaces still struggle with the effective implementation of these policies,

and unethical behavior often leads to workplace conflicts, employee dissatisfaction,

and legal disputes.

 Corporate Social Responsibility (CSR): CSR refers to a company’s responsibility to

contribute positively to society and the environment. Ethical organizations engage in

socially responsible activities, such as reducing their carbon footprint, supporting

local communities, or donating to charitable causes. Companies in India are mandated

to spend 2% of their average net profits on CSR activities under the Companies Act of

2013. For example, Tata Steel has a long history of CSR, focusing on areas such as

education, healthcare, and environmental sustainability.

 Transparency and Accountability: Ethical organizations are transparent in their

dealings, providing accurate information to their stakeholders. Transparency is critical

in areas such as financial reporting, corporate governance, and decision-making

processes. Ethical breaches such as financial misrepresentation, insider trading, or

concealing information can result in legal penalties and loss of trust from

stakeholders. The Satyam Scandal in India in 2009 is an example of how a lack of

transparency and accountability can lead to disastrous consequences. The company's

founder admitted to inflating the company’s profits, leading to a major corporate

scandal and the collapse of the organization. This incident highlighted the need for

strict ethical standards in corporate governance.

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 Environmental Ethics: Organizations have an ethical obligation to minimize their

environmental impact by using sustainable practices. Environmental ethics involves

making decisions that balance profit-making with the responsibility to protect natural

resources for future generations. Indian companies such as ITC Limited have

adopted sustainable business practices, including energy conservation, waste

management, and afforestation projects, as part of their commitment to environmental

ethics.

 Whistleblowing and Ethical Reporting: Whistleblowing occurs when an employee

exposes unethical practices within an organization. Companies with strong ethical

cultures often have clear policies that encourage whistleblowing, providing protection

for employees who report unethical behavior. For instance, organizations may create

anonymous reporting mechanisms that allow employees to report fraud, harassment,

or corruption without fear of retaliation. In India, the Whistleblowers Protection Act,

2014 provides a framework for protecting individuals who expose wrongdoing in the

workplace. However, the effectiveness of this legislation in safeguarding

whistleblowers and ensuring ethical corporate practices remains a subject of debate.

Organizational Ethics in the Indian Context

In India, the need for organizational ethics is more pressing than ever due to the rapid

industrialization, economic growth, and increasing scrutiny from both domestic and

international stakeholders. Indian businesses are facing growing pressure to uphold ethical

standards, particularly in light of high-profile corporate scandals and growing concerns about

environmental sustainability.
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 Cultural Influences on Organizational Ethics: Indian society is deeply influenced

by cultural and traditional values such as collectivism, respect for authority, and

familial loyalty. These cultural values can sometimes create ethical dilemmas in the

workplace, especially when individuals feel torn between organizational policies and

personal relationships. For example, nepotism, where family members are given

preferential treatment, is a common issue in Indian companies.

 Corporate Social Responsibility (CSR) in India: CSR is legally mandated for

certain companies in India under the Companies Act of 2013, which requires them to

spend a minimum of 2% of their average net profits on social welfare initiatives.

Many Indian companies, such as Reliance Industries, have embraced this mandate

by investing in projects related to education, rural development, and healthcare. This

legal requirement has encouraged Indian corporations to adopt a more ethical

approach to business, balancing profit-making with social responsibility.

 Challenges in Ethical Implementation: Despite the growing awareness of the

importance of organizational ethics, several challenges persist in India. These include

widespread corruption, lack of enforcement of ethical laws, and a focus on short-term

profits over long-term sustainability. Ethical breaches, such as bribery and fraudulent

financial reporting, are still common in certain industries, posing a threat to the

country’s business environment.

References

Companies Act, 2013, No. 18, Acts of Parliament, 2013 (India).

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Crane, A., & Matten, D. (2016). *Business Ethics: Managing Corporate Citizenship and

Sustainability in the Age of Globalization* (4th ed.). Oxford University Press.

Deci, E. L., & Ryan, R. M. (1985). *Intrinsic Motivation and Self-Determination in Human

Behavior*. Springer Science & Business Media.

Fernando, A. C. (2019). *Business Ethics: An Indian Perspective* (3rd ed.). Pearson

Education India.

Herzberg, F. (1966). *Work and the Nature of Man*. World Publishing.

Mayo, E. (1933). *The Human Problems of an Industrial Civilization*. Macmillan.

Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act,

2013, No. 14, Acts of Parliament, 2013 (India).

Sinha, D. (1958). *The role of psychology in Indian industry*. Indian Journal of Social Work,

19(4), 329-335.

Tata Consultancy Services. (2020). *Annual Report*. Tata Group.

Taylor, F. W. (1911). *The Principles of Scientific Management*. Harper & Brothers.

Velasquez, M. G. (2017). *Business Ethics: Concepts and Cases* (8th ed.). Pearson.

Whistleblowers Protection Act, 2014, No. 17, Acts of Parliament, 2014 (India).
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Analysis Of Harvard Case Study

Aim: Analysis of Harvard Case Study using any three theories of organisational behaviour.

Basic Concepts

A case study is a detailed and in-depth examination of a single individual, group, event,

organization, or situation within its real-life context. The goal of a case study is to

provide an intensive analysis of a particular subject to understand its unique features,

dynamics, and underlying factors. Researchers gather data through various methods,

such as interviews, observations, document review, and sometimes even quantitative

tests, to collect rich information about the case. This method allows researchers to

explore complex issues, understand how different factors interact, and potentially

uncover insights that might be overlooked in broader studies.

In psychology, case studies can offer valuable perspectives on human behavior, mental

health conditions, or treatment outcomes. In business, they help analyze successes or

challenges faced by a company, providing lessons that may apply to similar scenarios.

By focusing on one case at a time, researchers can generate hypotheses, identify

patterns, and develop theories that can later be tested or generalized in larger studies.

The Ordinary Heroes of the Taj – Harvard Case Study

On November 26, 2008, Harish Manwani, chairman, and Nitin Paranjpe, CEO, of Hindustan

Unilever hosted a dinner at the Taj Mahal Palace hotel in Mumbai (Taj Mumbai, for short).
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Unilever’s directors, senior executives, and their spouses were bidding farewell to Patrick

Cescau, the CEO, and welcoming Paul Polman, the CEO-elect. About 35 Taj Mumbai

employees, led by a 24-year-old banquet manager, Mallika Jagad, were assigned to manage

the event in a second-floor banquet room. Around 9:30, as they served the main course, they

heard what they thought were fireworks at a nearby wedding. In reality, these were the first

gunshots from terrorists who were storming the Taj.

The staff quickly realized something was wrong. Jagad had the doors locked and the lights

turned off. She asked everyone to lie down quietly under tables and refrain from using cell

phones. She insisted that husbands and wives separate to reduce the risk to families. The

group stayed there all night, listening to the terrorists rampaging through the hotel, hurling

grenades, firing automatic weapons, and tearing the place apart. The Taj staff kept calm,

according to the guests, and constantly went around offering water and asking people if they

needed anything else. Early the next morning, a fire started in the hallway outside, forcing the

group to try to climb out the windows. A fire crew spotted them and, with its ladders, helped

the trapped people escape quickly. The staff evacuated the guests first, and no casualties

resulted. “It was my responsibility….I may have been the youngest person in the room, but I

was still doing my job,” Jagad later told one of us.Elsewhere in the hotel, the upscale

Japanese restaurant Wasabi by Morimoto was busy at 9:30 PM. A warning call from a hotel

operator alerted the staff that terrorists had entered the building and were heading toward the

restaurant. Forty-eight-year-old Thomas Varghese, the senior waiter at Wasabi, immediately

instructed his 50-odd guests to crouch under tables, and he directed employees to form a

human cordon around them. Four hours later, security men asked Varghese if he could get the

guests out of the hotel. He decided to use a spiral staircase near the restaurant to evacuate the

customers first and then the hotel staff. The 30-year Taj veteran insisted that he would be the
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last man to leave, but he never did get out. The terrorists gunned him down as he reached the

bottom of the staircase.

When Karambir Singh Kang, the Taj Mumbai’s general manager, heard about the attacks, he

immediately left the conference he was attending at another Taj property. He took charge at

the Taj Mumbai the moment he arrived, supervising the evacuation of guests and

coordinating the efforts of firefighters amid the chaos. His wife and two young children were

in a sixth-floor suite, where the general manager traditionally lives. Kang thought they would

be safe, but when he realized that the terrorists were on the upper floors, he tried to get to his

family. It was impossible. By midnight the sixth floor was in flames, and there was no hope

of anyone’s surviving. Kang led the rescue efforts until noon the next day. Only then did he

call his parents to tell them that the terrorists had killed his wife and children. His father, a

retired general, told him, “Son, do your duty. Do not desert your post.” Kang replied, “If it

[the hotel] goes down, I will be the last man out.”

Three years ago, when armed terrorists attacked a dozen locations in Mumbai—including two

luxury hotels, a hospital, the railway station, a restaurant, and a Jewish center—they killed as

many as 159 people, both Indians and foreigners, and gravely wounded more than 200. The

assault, known as 26/11, scarred the nation’s psyche by exposing the country’s vulnerability

to terrorism, although India is no stranger to it. The Taj Mumbai’s burning domes and

spires, which stayed ablaze for two days and three nights, will forever symbolize the tragic

events of 26/11.

During the onslaught on the Taj Mumbai, 31 people died and 28 were hurt, but the hotel

received only praise the day after. Its guests were overwhelmed by employees’ dedication to

duty, their desire to protect guests without regard to personal safety, and their quick thinking.

Restaurant and banquet staff rushed people to safe locations such as kitchens and basements.
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Telephone operators stayed at their posts, alerting guests to lock doors and not step out.

Kitchen staff formed human shields to protect guests during evacuation attempts. As many as

11 Taj Mumbai employees—a third of the hotel’s casualties—laid down their lives while

helping between 1,200 and 1,500 guests escape.

Organizational Behaviour

Organizational Behaviour (OB) is the study of how people interact within groups in a

professional setting. It explores individual and collective behaviour, examining how people’s

actions, attitudes, and performance affect an organization’s overall productivity and culture.

By analysing factors such as motivation, leadership, team dynamics, and organizational

structures, OB aims to understand and improve workplace effectiveness and employee

satisfaction.

The field of organizational behaviour combines principles from psychology, sociology,

anthropology, and management. Key topics include communication, decision-making,

conflict resolution, and the influence of organizational culture on employee behaviour. By

studying OB, managers and leaders can develop strategies to foster a positive work

environment, enhance employee engagement, and align individual goals with organizational

objectives. In practice, understanding OB can help organizations adapt to change, resolve

issues more effectively, and ultimately achieve better performance outcomes.

Nature of Organizational Behaviour

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Organizational behaviour (OB) is the study of how people interact within groups in a

professional setting. It explores individual and collective behaviour, examining how people’s

actions, attitudes, and performance affect an organization’s overall productivity and culture.

By analysing factors such as motivation, leadership, team dynamics, and organizational

structures, OB aims to understand and improve workplace effectiveness and employee

satisfaction.

The field of organizational behaviour combines principles from psychology, sociology,

anthropology, and management. Key topics include communication, decision-making,

conflict resolution, and the influence of organizational culture on employee behaviour. By

studying OB, managers and leaders can develop strategies to foster a positive work

environment, enhance employee engagement, and align individual goals with organizational

objectives. In practice, understanding OB can help organizations adapt to change, resolve

issues more effectively, and ultimately achieve better performance outcomes.

Theories of Organizational Behaviour

Maslow's Theory of Motivation (Hierarchy of Needs):

Abraham Maslow’s theory is one of the foundational frameworks in psychology and

organizational behaviour. It suggests that human needs are arranged in a hierarchy, beginning

with basic physiological needs (like food and shelter) and moving up to safety, social

belonging, esteem, cognitive needs, aesthetic needs, self-actualization and transcendence.

According to this theory, individuals are motivated to fulfill lower-level needs before they

can focus on higher-level needs. In an organizational context, employers can use this theory
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to identify what motivates employees and create work environments that address these needs

at different levels, thus enhancing productivity and job satisfaction.

Herzberg's Two-Factor Theory (Motivation-Hygiene Theory):

Frederick Herzberg proposed that job satisfaction and dissatisfaction arise from two different

sets of factors: motivators and hygiene factors. Motivators, such as recognition and

opportunities for personal growth, are factors that lead to job satisfaction and encourage

better performance. Hygiene factors, such as salary, company policies, and work conditions,

do not necessarily improve job satisfaction but can prevent dissatisfaction. For managers, this

theory highlights the importance of both intrinsic (motivational) and extrinsic (hygiene)

factors to create a motivating work environment that reduces dissatisfaction and promotes

engagement.

Expectancy Theory:

Developed by Victor Vroom, the expectancy theory suggests that employees are motivated

when they believe that their efforts will lead to good performance (expectancy), that good

performance will lead to desired rewards (instrumentality), and that the rewards are valuable

to them (valence). This theory implies that motivation is highest when employees feel

confident in their abilities, believe that their work will be rewarded, and see the rewards as

meaningful. Managers can leverage this theory by setting clear performance standards,

ensuring rewards are achievable, and aligning rewards with employee desires.

Equity Theory:
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Proposed by J. Stacy Adams, the equity theory posits that employees are motivated by

fairness and will compare their input-output ratios (effort, skill, rewards) to those of others in

similar roles. If they perceive an imbalance, they may feel under-rewarded or over-rewarded,

leading to dissatisfaction and a change in motivation. Employees may react by adjusting their

work effort, seeking a change in rewards, or leaving the organization. Managers can use this

theory to maintain fairness in compensation and recognition, thus reducing turnover and

promoting fairness in the workplace.

Goal Setting Theory:

Created by Edwin Locke and Gary Latham, the goal-setting theory emphasizes that specific,

challenging, and achievable goals can drive higher performance. According to this theory,

clear goals and appropriate feedback help employees stay focused and motivated. For

example, setting specific sales targets for a salesperson can drive better outcomes than vague

expectations. Goal setting promotes a sense of direction, encourages persistence, and

enhances task engagement. Managers can apply this theory by setting SMART (Specific,

Measurable, Achievable, Relevant, Time-bound) goals and providing regular feedback.

Indian Approach to Work Motivation:

This approach incorporates motivation theories from an Indian cultural perspective, focusing

on local values, traditions, and work ethics. It explores how cultural values such as

collectivism, respect for hierarchy, and a focus on community can influence motivation in

Indian organizations. By considering culturally specific aspects like loyalty to family-owned

businesses, the role of spirituality, and social obligations, organizations can better motivate
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their employees. This approach helps organizations adapt Western motivational theories to

suit the Indian context, resulting in a more engaged and committed workforce.

Review of Literature

Matilal and Adhikari (Matilal & Adhikari, 2019) in their article "Accounting in Bhopal:

making catastrophe." argue that while the Bhopal Gas Disaster has been extensively

analyzed, particularly in the realms of crisis communication and stakeholder management,

there remains a notable gap concerning the role of accounting practices in the unfolding of

this catastrophe. Furthermore, they discuss the rhetorical strategies employed by the Union

Carbide Corporation (UCC) in their attempts to navigate the complex landscape of post-

disaster corporate policy, highlighting the inherent tensions between addressing the needs of

victims and maintaining shareholder interests. This study underscores the necessity of

integrating accounting perspectives into organizational studies of disasters, thereby enriching

the understanding of how organizations can better prepare for and respond to crises.

The study by Sharma and Sinha (2016) focuses on understanding crisis leadership through

the actions of Neerja Bhanot during the hijacking of Pan Am Flight 73 in 1986. The authors

emphasize her quick, calm, and decisive actions, which were crucial in managing the chaos

during the hijacking. They provide an in-depth analysis of how her behavior aligns with

several established leadership theories, particularly transformational leadership and

situational leadership. Sharma and Sinha (2016) conclude by reinforcing the importance of

transformational leadership, emotional intelligence, and ethical leadership in crisis

scenarios. Through their analysis of Neerja Bhanot’s actions during the hijacking, the authors
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provide valuable insights into how leaders can manage crises effectively by remaining

composed, empathetic, and morally driven. They argue that the lessons from the Neerja

Bhanot case offer a timeless model for leadership under extreme conditions, with broad

relevance for crisis management across various organizational contexts.

Banerjee’s (2004) study, Leadership and Conflict in Communal Riots: The Case of Godhra,

explores the role of leadership in the context of the 2002 Godhra riots, which sparked

widespread communal violence in Gujarat, India. The study focuses on the dynamics of

leadership, conflict, and group behavior during episodes of communal violence, providing a

detailed analysis of how leaders influence the escalation or de-escalation of such conflicts.

Political leaders who sought to gain electoral advantage by inflaming communal tensions

were instrumental in exacerbating the violence. On the other hand, local leaders who

promoted dialogue and reconciliation helped mitigate the conflict in some areas. The research

suggests that leadership training and intervention strategies should focus on conflict de-

escalation and promoting ethical leadership practices, particularly in regions with a history of

communal tensions. Banerjee recommends that political and community leaders be educated

on the long-term consequences of communal violence and the importance of building

inclusive narratives that emphasize shared identity and collective well-being.

Analysis of the Case Study

Social Identity Theory

 Social Identity Theory, introduced by Henri Tajfel and John Turner, posits that

individuals derive a sense of self from the groups they belong to. Employees at the Taj

Hotel likely identified strongly with the hotel’s prestigious brand and its commitment
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to service. This collective identity created a sense of pride and loyalty, motivating

employees to act in ways that aligned with the group’s values.

 During the crisis, the shared sense of being part of the “Taj family” reinforced their

commitment to protect guests. Employees were willing to risk their own safety to

uphold the hotel’s reputation for hospitality and care, displaying actions rooted in a

deeply internalized group loyalty and pride.

Servant Leadership Theory

 Servant Leadership Theory, developed by Robert Greenleaf, emphasizes that leaders

should prioritize serving others and supporting their growth. The Taj Hotel’s

leadership fostered a strong culture of service, where employees were encouraged to

put guests’ needs first and act selflessly.

 This leadership approach likely permeated the organization, instilling in employees a

sense of responsibility and empathy for guests. The servant leadership model

contributed to an environment where employees felt a moral and ethical duty to go

above and beyond in protecting guests during the attacks, prioritizing service and care

even at great personal risk.

Transformational Leadership Theory

 Transformational Leadership Theory, proposed by James MacGregor Burns,

highlights leaders who inspire and motivate employees to exceed their own self-

interests for the sake of the organization. Through vision, role modeling, and

empowerment, transformational leaders encourage employees to reach higher levels

of commitment and performance.

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 The Taj Hotel’s leadership likely exemplified transformational qualities by creating a

compelling vision of guest-centered service and fostering a culture of dedication. This

inspirational leadership empowered employees to act courageously and decisively

during the attacks, feeling motivated not only by duty but by an aspiration to uphold

the values instilled by their leaders.

Discussion
The analysis of The Harvard Case Study through Social Identity Theory, Servant

Leadership Theory, and Transformational Leadership Theory highlights how a

combination of strong organizational culture, supportive leadership, and a shared sense of

identity can drive extraordinary behaviors in employees.

Firstly, Social Identity Theory explains how the Taj Hotel’s employees, viewing themselves

as part of the “Taj family,” felt a deep loyalty to the organization. This sense of belonging

encouraged them to act in ways that aligned with the hotel’s values, even in life-threatening

situations. The employees’ actions went beyond the basic expectations of their roles, showing

how group identity can enhance commitment, particularly in times of crisis.

Servant Leadership Theory further illustrates the impact of a service-oriented culture. The

Taj Hotel’s leadership nurtured an environment where the needs of others—specifically, the

guests—were prioritized. This leadership approach likely instilled a sense of responsibility

and empathy in employees, motivating them to protect guests selflessly. The employees’

actions during the crisis reflect an internalized commitment to serve, demonstrating that when

leaders act as role models of service, employees are likely to adopt similar values.
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Lastly, Transformational Leadership Theory provides insights into the ways inspirational

leadership can empower employees. The Taj Hotel’s leadership promoted a vision of guest-

centered service, fostering dedication and a willingness to go above and beyond. By inspiring

employees and aligning them with the organization’s goals, transformational leaders at the

Taj enabled their team members to act courageously and decisively during the attacks. This

kind of leadership, which appeals to higher ideals and purpose, motivated employees to act

with a sense of duty that transcended personal safety.

Conclusion
The case study of the Taj employees’ actions during the Mumbai attacks reveals how deeply

rooted organizational culture and leadership can shape employee behavior in extraordinary

ways. Through the lens of Social Identity Theory, Servant Leadership Theory, and

Transformational Leadership Theory, we see that a combination of strong group identity, an

ethos of selfless service, and inspirational leadership can empower employees to act

heroically even in extreme circumstances.

The Taj Hotel’s culture of loyalty, service, and commitment did not just enhance everyday

operations but also prepared employees to respond courageously in a crisis. This case

exemplifies that, when employees identify closely with their organization, are inspired by

servant-minded leaders, and are empowered by transformational leadership, they are more

likely to perform extraordinary acts. Organizations seeking to foster such commitment can

learn from the Taj’s approach, focusing on building a culture of trust, purpose, and service to

inspire employees to rise to the occasion, even in the most challenging situations.
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