Detailed Study Notes for Exam Preparation

Chapter 2: Diversity in Organizations

Learning Objectives
1. Differentiate between two major forms of workplace diversity.
2. Understand how workplace discrimination undermines organizational effectiveness.
3. Explore the relevance of biographical characteristics to Organizational Behavior (OB).
4. Examine other differentiating characteristics influencing OB.
5. Discuss intellectual and physical abilities in OB.
6. Identify strategies for effective diversity management.
Key Topics
 Workplace Diversity
o Surface-level diversity: Observable traits like age, gender, ethnicity.
o Deep-level diversity: Personality, values, and beliefs.
 Workplace Discrimination
o Types of discrimination:
 Exclusion: Marginalizing individuals from opportunities.
 Discriminatory policies: Unequal rewards or opportunities.
 Incivility: Disrespectful treatment.
 Mockery and insults: Harmful stereotypes or jokes.
 Intimidation: Overt threats or bullying.
 Sexual harassment: Unwanted sexual advances.
o Stereotype threat: Internal agreement with negative stereotypes.
 Biographical Characteristics
o Age: Older workers have lower absenteeism and turnover; age is not correlated
with lower productivity.
o Sex: No significant differences in job-related abilities, but disparities exist in pay
and opportunities.
o Race and Ethnicity: Favoritism often observed; legal protections exist but are
not always effective.
o Disabilities: Higher performance evaluations but lower expectations.
o Hidden Disabilities: Chronic illnesses, learning impairments, and
psychological challenges.
  Other Characteristics
o Tenure: Positively related to productivity.
o Religion: Discrimination persists despite legal protections.
o Sexual Orientation and Gender Identity: Growing inclusion, especially in
progressive companies.
o Cultural Identity: Need for accommodation and respect.
 Abilities in OB
o Intellectual Abilities: Mental activities such as reasoning and problem-solving.
 Examples: Number aptitude, verbal comprehension, memory.
o Physical Abilities: Stamina, strength, and coordination.
 Nine dimensions include dynamic strength, balance, and stamina.
 Effective Diversity Management
o Programs must foster awareness and sensitivity.
o Recruitment, retention, and development of diverse employees.
o Emphasis on commonalities while respecting differences.
Managerial Implications
 Understand and communicate anti-discrimination policies.
 Evaluate employees based on individual capabilities.
 Promote fair treatment and foster diversity through structured programs.

Chapter 3: Attitudes and Job Satisfaction

Learning Objectives
1. Understand the components of attitudes.
2. Examine the relationship between attitudes and behavior.
3. Explore major job attitudes and their impact.
4. Define and identify causes of job satisfaction.
Key Topics
 Attitudes and Behavior
o Components of attitudes:
 Cognitive: Belief about something.
 Affective: Emotional response.
 Behavioral: Intention to act.
 o People seek consistency between attitudes and behaviors.
 Job Attitudes
o Job Satisfaction: Positive feelings about one’s job.
o Job Involvement: Psychological identification with the job.
o Organizational Commitment: Alignment with organizational goals.
o Perceived Organizational Support (POS): Belief that the organization values
contributions.
o Employee Engagement: Involvement, satisfaction, and enthusiasm for work.
 Causes of Job Satisfaction
o Job Conditions: Intrinsic nature of work, supervision, and social interactions.
o Personality: Positive core self-evaluations lead to higher satisfaction.
o Pay and CSR: Contribute to satisfaction but are not sole determinants.
Managerial Implications
 Monitor job satisfaction to predict performance and turnover.
 Align employee interests with challenging, meaningful work.
 Recognize that pay alone does not ensure satisfaction.

Chapter 4: Personality and Values

Learning Objectives
1. Understand person-job and person-organization fit.
2. Explore personality frameworks (MBTI, Big Five).
3. Examine traits like core self-evaluation and proactive personality.
4. Contrast terminal and instrumental values.
Key Topics
 Personality
o Measured through self-report surveys.
o Myers-Briggs Type Indicator (MBTI): Classifies individuals into 16 personality
types.
o Big Five Model:
 Openness, Conscientiousness, Extraversion, Agreeableness, Emotional
Stability.
 Values
o Terminal values: Desired end-states.
 o Instrumental values: Preferred behaviors to achieve goals.
o Value systems influence attitudes and behaviors.
 Situational Influences
o Situation Strength Theory: Behavior depends on the strength of the situation.
o Trait Activation Theory: Certain traits are activated in specific situations.
Managerial Implications
 Assess personality and values for better fit and performance.
 Use MBTI and Big Five for development and team-building.
 Consider cultural value differences in interactions.

Chapter 6: Emotions and Moods

Learning Objectives
1. Differentiate emotions and moods.
2. Identify sources of emotions and moods.
3. Understand emotional labor and its effects.
4. Explore Affective Events Theory and Emotional Intelligence.
5. Learn strategies for emotion regulation.
6. Apply concepts to Organizational Behavior (OB).
Key Topics
 Emotions vs. Moods
o Emotions: Intense, short-lived, specific causes.
o Moods: Less intense, longer-lasting, no specific cause.
 Sources of Emotions and Moods
o Personality, time of day, day of the week, weather, stress, social activities, sleep,
exercise, age, gender.
 Emotional Labor
o Managing emotions to meet job requirements.
o Surface acting vs. deep acting.
o Emotional dissonance leads to burnout.
 Affective Events Theory (AET)
o Workplace events trigger emotional reactions influencing performance and
satisfaction.
  Emotional Intelligence (EI)
o Ability to perceive, understand, and regulate emotions.
 Emotion Regulation Techniques
o Surface acting, deep acting, emotional suppression, cognitive reappraisal,
social sharing, mindfulness.
Applications in OB
 Selection: EI as a hiring criterion.
 Decision Making: Positive emotions improve decisions.
 Creativity: Positive moods enhance creativity.
 Leadership: Emotions influence message acceptance.
 Customer Service: Emotional contagion affects satisfaction.
 Workplace Safety: Avoid risky tasks in negative moods.
Managerial Implications
 Recognize emotions as integral to the workplace.
 Foster positive emotions for better decision-making and creativity.
 Train leaders to manage emotions effectively.

Chapter 7: Motivation Concepts and Chapter 8: Motivation Applications.

Chapter 7: Motivation Concepts

Learning Objectives
1. Understand the key elements of motivation: intensity, direction, and persistence.
2. Compare early theories like Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory,
and McClelland’s Theory of Needs.
3. Discuss self-determination and goal-setting theories.
4. Analyze self-efficacy, reinforcement, and expectancy theories.
5. Examine forms of organizational justice.
6. Discuss the role of job engagement.
7. Integrate contemporary theories.

Key Concepts
1. Three Key Elements of Motivation:
• Intensity: Effort level.
• Direction: Goal orientation.
• Persistence: Sustained effort.
2. Early Theories of Motivation:
• Maslow’s Hierarchy of Needs: Critiqued for limited empirical support.
• Herzberg’s Two-Factor Theory: Distinguishes between intrinsic motivators
(satisfiers) and extrinsic factors (dissatisfiers).
• McClelland’s Theory of Needs:
• Need for Achievement (nAch): Striving for excellence.
• Need for Power (nPow): Influence over others.
• Need for Affiliation (nAff): Seeking relationships.
3. Self-Determination Theory:
• Focus on intrinsic vs. extrinsic motivation.
• Recognizes that extrinsic rewards can sometimes boost intrinsic motivation.
4. Goal-Setting Theory:
• Effective goals are specific, challenging, and supported by feedback.
5. Self-Efficacy Theory:
• Based on belief in one’s capability.
• Influenced by mastery, modeling, persuasion, and arousal.
6. Reinforcement Theory:
• Behavior is shaped by its consequences (e.g., rewards or punishments).
7. Expectancy Theory:
• Motivation is a function of expectations about effort, performance, and outcomes.
8. Organizational Justice:
• Distributive (fairness of outcomes).
• Procedural (fairness in processes).
• Informational (transparency).
• Interactional (quality of interpersonal treatment).
9. Job Engagement:
• Driven by meaningful work, value alignment, and inspiring leadership.
Chapter 8: Motivation Applications

Learning Objectives
1. Apply the Job Characteristics Model (JCM).
2. Explore job redesign methods like rotation and enrichment.
3. Assess alternative work arrangements (e.g., telecommuting, job sharing).
4. Use employee involvement programs (e.g., participative management).
5. Leverage variable-pay systems and flexible benefits.
6. Recognize intrinsic rewards.
Key Concepts
1. Job Characteristics Model (JCM):
• Core dimensions: Skill variety, task identity, task significance, autonomy, and feedback.
• Combined into the Motivating Potential Score (MPS).
2. Job Redesign:
• Rotation: Reduces monotony, increases skills.
• Enrichment: Adds responsibility to enhance motivation.
• Relational Design: Connects employees to beneficiaries.
3. Alternative Work Arrangements:
• Flextime: Flexibility in work hours.
• Job Sharing: Two people split one role.
• Telecommuting:
• Pros: Improved satisfaction, reduced conflicts.
• Cons: Isolation, less teamwork.
4. Employee Involvement:
• Participative decision-making and representative participation (e.g., works councils).
5. Variable Pay Programs:
• Piece-rate pay, merit-based pay, bonuses, profit sharing, and ESOPs.
• Align compensation with performance and organizational goals.
6. Flexible Benefits:
• Tailored packages to individual needs.
7. Intrinsic Rewards:
• Recognition programs that value contributions and foster satisfaction.
Detailed Notes on Chapter 9: Foundations of Group Behavior
Learning Objectives:
1. Types of Groups:
o Formal Groups: Defined by organizational structure, with designated tasks.
o Informal Groups: Form naturally, not defined by structure (e.g., social groups).
o Social Identity Theory: Explains group membership and emotional ties to group
performance.
 Ingroup Favoritism: Viewing one’s group as superior.
 Social Identity Threat: Fear of negative evaluation due to group
association.
2. Punctuated-Equilibrium Model:
o Groups alternate between periods of inertia and bursts of activity.
o Key phases:
 Initial meeting sets direction.
 Transition occurs at midpoint.
 Final push to complete the task.
3. Roles and Role Dynamics:
o Role: Expected behavior patterns tied to a position.
 Role Perception: How one thinks they should act.
 Role Expectations: How others believe one should act.
 Psychological Contract: Unwritten mutual expectations between
employee and employer.
o Role Conflict: When expectations clash (e.g., interrole conflict).
o Role Assimilation: Demonstrated by Zimbardo’s prison experiment, showing
rapid adaptation to roles.
4. Norms and Their Influence:
o Norms: Shared acceptable behavior standards.
 Influence emotions and behaviors within a group.
o Positive Norms: Can lead to positive outcomes, especially when aligned with
corporate values.
o Deviant Workplace Behavior: Includes sabotage, gossip, and harassment.
Categorized into production, property, political, and personal aggression.
o Cultural Influence: Norms vary across collectivist vs. individualist cultures.
 5. Status and Size in Groups:
o Status: Rank or position within a group, derived from power, ability, or personal
traits.
 High-status individuals can deviate from norms and are often more
assertive.
 Status inequity can lead to resentment and corrective actions.
o Group Size:
 Large groups: Diverse input but prone to social loafing.
 Small groups: Better for task execution and coordination.
6. Cohesiveness and Diversity:
o Cohesiveness: Stronger cohesion leads to better performance when aligned
with group norms.
o Diversity:
 Short-term: Increases conflict.
 Long-term: Encourages creativity and open-mindedness.
o Faultlines: Divisions within groups based on demographic or personal
differences.
7. Group Decision Making:
o Strengths:
 Comprehensive knowledge.
 Diverse viewpoints.
 Greater acceptance of decisions.
o Weaknesses:
 Time-consuming.
 Conformity pressures (groupthink).
 Dominance by certain members.
 Ambiguous responsibility.
o Techniques:
 Brainstorming: Encourages free-flowing ideas.
 Nominal Group Technique: Restricts interpersonal communication to
improve idea generation.
Implications for Managers:
 Recognize group influence on individual behavior.
  Promote positive norms and minimize deviant behaviors.
 Use status differences wisely to encourage participation from all members.
 Leverage group size appropriately (e.g., large for fact-finding, small for action tasks).
 Align group cohesiveness with organizational goals to enhance productivity.

Detailed Notes on Chapter 11: Power and Politics

Learning Objectives:
1. Leadership vs. Power:
o Power: Capacity to influence others to act in line with one’s wishes.
 Exists without being exercised.
 Rooted in dependence.
o Leadership: Focuses on goal compatibility and downward influence on
followers.
 Power emphasizes dependence and includes all influence directions.
2. Bases of Power:
o Formal Power:
 Coercive Power: Based on fear of negative consequences.
 Reward Power: Based on the ability to distribute rewards.
 Legitimate Power: Derived from formal authority.
o Personal Power:
 Expert Power: Based on specialized knowledge or skills.
 Referent Power: Based on identification or admiration.
o Effectiveness:
 Personal power (expert and referent) is more effective than formal power.
3. Dependence in Power Relationships:
o General Dependency Postulate:
 Power increases with dependence.
 Dependence is inversely related to availability of alternatives.
o What Creates Dependence:
 Importance: Value of the resource.
  Scarcity: Limited availability.
 Nonsubstitutability: Lack of alternatives.
4. Influence Tactics and Contingencies:
o Tactics:
 Rational persuasion, inspirational appeals, consultation (most
effective).
 Legitimacy, ingratiation, exchange, personal appeals, coalitions,
pressure (context-dependent).
o Cultural Differences:
 Individualistic cultures favor personal tactics.
 Collectivist cultures emphasize social tactics.
o Application:
 Politically skilled individuals are better at using influence tactics
effectively.
5. Abuse of Power:
o Consequences:
 Self-interest prioritization.
 Overconfidence in decision-making.
 Negative reactions to competence threats.
o Sexual Harassment:
 Unwanted behavior affecting employment or creating a hostile
environment.
 Prevention includes clear policies, training, and proactive management.
6. Organizational Politics:
o Definition: Activities influencing decision-making and resource distribution
beyond formal roles.
 Includes withholding information, spreading rumors, and whistle-
blowing.
o Causes:
 Scarce resources, ambiguous roles, and individual personality traits.
o Employee Responses:
 Perception of politics can lead to decreased satisfaction, increased
turnover, and stress.
7. Ethics in Political Behavior:
 o Questions to consider:
 Does the behavior’s utility outweigh its harm?
 Does it conform to fairness and justice?
o Impression Management (IM):
 Controlling others’ perceptions.
 Effective when authentic but risky when perceived as manipulative.
Implications for Managers:
 Increase power by creating dependence (e.g., unique skills).
 Avoid situations where employees feel powerless.
 Assess political behavior to predict actions and formulate strategies.
 Help employees develop political skills to navigate organizational dynamics.

Detailed Notes on Chapter 12: Communication

Learning Objectives:
1. Functions and Process of Communication:
o Functions:
 Management: Guides behavior via authority and guidelines.
 Feedback: Clarifies tasks, progress, and improvements.
 Emotional Sharing: Conveys satisfaction and frustration.
 Persuasion: Influences attitudes positively or negatively.
 Information Exchange: Facilitates decision-making.
o Process:
 Sender → Encoding → Message → Channel → Receiver → Decoding →
Feedback.
2. Types of Communication:
o Downward:
 From higher to lower levels.
 Conveys goals, instructions, and feedback.
 Often one-way, limiting interaction.
o Upward:
 From lower to higher levels.
  Provides feedback, progress updates, and concerns.
 Should be concise and actionable.
o Lateral:
 Among peers or colleagues at the same level.
 Facilitates coordination but may lead to conflicts.
o Informal (Grapevine):
 Unofficial communication channel.
 Reflects employee morale and concerns.
3. Modes of Communication:
o Oral Communication:
 Includes speeches, meetings, and phone calls.
 Benefits: Speed, feedback.
 Drawbacks: Potential for distortion.
o Written Communication:
 Includes emails, reports, and memos.
 Benefits: Record-keeping and clarity.
 Drawbacks: Time-consuming and risk of misinterpretation.
o Nonverbal Communication:
 Includes body language, tone, and physical distance.
 Conveys emotions and engagement but can be ambiguous.
4. Channel Richness:
o Measures a channel’s ability to handle multiple cues and provide feedback.
o Rich Channels: Face-to-face communication (best for complex issues).
o Lean Channels: Written communication (best for routine information).
5. Persuasive Communication:
o Automatic Processing:
 Superficial consideration (e.g., catchy slogans).
 Quick and effortless but prone to manipulation.
o Controlled Processing:
 Detailed analysis of evidence and logic.
 Requires effort but leads to better decisions.
o Match the message to the audience’s interest and knowledge level.
 6. Barriers to Effective Communication:
o Filtering: Manipulating information to please the receiver.
o Selective Perception: Interpreting information based on personal bias.
o Information Overload: Excessive information leading to misinterpretation.
o Emotions: Mood affects message reception.
o Language: Jargon and cultural differences.
o Silence: Absence of communication can indicate issues.
o Lying: Destroys trust and credibility.
7. Cross-Cultural Communication:
o Barriers:
 Semantic differences.
 Tone variations.
 Conflict resolution styles.
o Overcoming Issues:
 Foster respect and fairness.
 Focus on facts, not interpretations.
 Consider other perspectives.
Implications for Managers:
 Choose communication channels based on message complexity and audience.
 Encourage feedback to ensure clarity and understanding.
 Address barriers like language and cultural differences proactively.
 Use oral communication for critical, complex matters and written communication for
records.
 Monitor nonverbal cues to gauge employee engagement and emotions.

Chapter 13: Leadership

Learning Objectives
1. Trait Theories: Explore how traits predict leadership and distinguish leader emergence
from effectiveness.
o Extraversion predicts leadership emergence.
o Conscientiousness and openness correlate with leadership.
 2. Behavioral Theories: Focus on training individuals as leaders.
o Key behaviors: Initiating structure and consideration.
3. Contemporary Theories: Include Charismatic, Transformational, and Transactional
Leadership.
o Transformational leaders inspire with a compelling vision.
o Charismatic leaders focus on dynamic communication.
4. Ethical Leadership: Includes authentic and servant leadership.
o Authentic leaders act consistently with core values.
o Servant leaders prioritize followers' growth and development.
5. Challenges: Context and external factors often influence success.
Summary Notes
 Trait Theories: Focus on intrinsic qualities like the Big Five personality traits.
 Behavioral Theories: Center on learned behaviors for leadership effectiveness.
 Contemporary Theories: Evaluate leader-follower relationships, emphasizing
situational adaptation.
 Ethics and Trust: Leaders’ ethical behavior and trust-building are critical for sustainable
leadership.
Implications for Managers
 Match leadership style with organizational culture.
 Develop trust and emphasize ethical leadership to enhance team performance.

Chapter 14: Foundations of Organization Structure

Learning Objectives
1. Key Elements of Structure:
o Work Specialization: Division of labor.
o Departmentalization: Grouping by function, product, etc.
o Chain of Command: Authority and reporting relationships.
o Span of Control: Number of direct reports.
o Centralization vs. Decentralization: Where decision-making lies.
o Formalization: Degree of standardization.
o Boundary Spanning: External interactions.
2. Common Structures:
o Functional, bureaucratic, matrix, virtual, team, circular.
 3. Effects of Downsizing:
o Approaches include communication, participation, and assistance.
4. Mechanistic vs. Organic Models:
o Mechanistic: Rigid, hierarchical, formal.
o Organic: Flexible, decentralized, adaptive.
5. Behavioral Implications:
o Design impacts productivity, satisfaction, and motivation.
Key Frameworks
 Simple Structure: Fast and inexpensive but limited to small organizations.
 Bureaucracy: Efficient but risks subunit conflicts.
 Matrix Structure: Combines functional and product departmentalization, improving
coordination but increasing complexity.
 Team Structure: Eliminates hierarchies, fostering empowerment but requiring strong
collaboration.
 Virtual Structure: Centralized core, outsourcing non-core functions.
Managerial Takeaways
 Balance structure with flexibility to adapt to dynamic environments.
 Encourage empowerment through organic models where possible.

Final Session: Organizational System

Topics Covered
1. Organizational Culture:
o Definition: Shared values and norms.
o Types: Clan, Adhocracy, Market, Hierarchy.
o Strong Cultures: Influence behavior through shared core values.
2. HR Policies and Practices:
o Selection Methods: Written tests, performance simulations, structured
interviews.
o Effective Onboarding: Strategies promote alignment with culture.
3. Organizational Change:
o Forces Driving Change: Workforce, technology, economy, competition.
o Change Agents: Lead planned changes to improve adaptability.
4. Conflict and Negotiation:
 o Types of Conflict: Task, relationship, process.
o Loci of Conflict: Dyadic, intragroup, intergroup.
Behavioral Implications
 Organizational culture impacts employee satisfaction and collaboration.
 Managing change requires clear communication and support systems.
 Functional conflict can enhance performance when managed constructively.
Strategies for Managers
 Foster strong organizational cultures.
 Use structured selection processes for hiring.
 Address conflict proactively, focusing on resolution rather than escalation.

Exam Preparation Tips

1. Focus Areas:
o Understand the distinctions between leadership theories.
o Familiarize yourself with structural elements and their implications.
o Apply cultural and HR principles to organizational scenarios.
2. Quiz Practice:
o Review questions provided in the slides for applied understanding.
3. Concept Integration:
o Connect theories to real-world examples.
o Reflect on how organizational structures and cultures shape behavior and
performance.