Unit 3: Understanding individual behaviour

Organisational behaviour is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organisations, in order to improve organisational effectiveness (Stephen Robbins). It works at three levels: individual, group and organisation system. Relevance: understanding and predicting behaviour, improving motivation and productivity, managing change and conflict, building effective teams and leaders, and reducing absenteeism and turnover.

• Globalisation and managing people from different cultures.
• Workforce diversity in gender, age, ethnicity and ability.
• Improving quality and productivity and customer service.
• Technology and remote/hybrid work.
• Ethical behaviour and employee well-being.
• Managing change, innovation and the gig economy.

Personality is the sum of ways in which an individual reacts to and interacts with others.

• Determinants: heredity, environment (culture, family, social groups) and situation.
• Big Five traits: openness, conscientiousness, extraversion, agreeableness and neuroticism (emotional stability).
• Other traits relevant at work: locus of control (internal vs external), self-esteem, self-monitoring, risk-taking and Type A / Type B personality.

Perception is the process by which individuals organise and interpret their sensory impressions to give meaning to their environment.

Values are basic convictions that a specific mode of conduct or end-state is personally or socially preferable (Rokeach).

• Terminal values: desirable end-states (a comfortable life, family security, wisdom).
• Instrumental values: preferred means of behaviour (honesty, ambition, responsibility).
• Importance: shape attitudes, perceptions and motivation; values conflicts between generations (Gen Z seeks purpose and flexibility).

An attitude is an evaluative statement about objects, people or events. Components: cognitive (belief), affective (feeling) and behavioural (intention to act). Work-related attitudes: job satisfaction, job involvement and organisational commitment.

Individual behaviour depends on biographical characteristics (age, gender, tenure), ability (intellectual and physical), personality, perception, attitudes, values and learning. Learning is a relatively permanent change in behaviour that occurs as a result of experience.

Applications of motivation theories

• Job design: job enrichment (Herzberg), job rotation, job enlargement; Job Characteristics Model (skill variety, task identity, task significance, autonomy, feedback).
• Goal setting: specific, challenging goals with feedback (Locke).
• Pay for performance: incentives, ESOPs, gain-sharing.
• Employee involvement: participative management, quality circles.
• Recognition programmes and flexible work arrangements.

Leadership is the ability to influence a group towards achieving goals.

• Trait theory: leaders have innate traits — intelligence, self-confidence, integrity, drive.
• Behavioural theories: Ohio State studies (initiating structure and consideration), Michigan studies (employee-oriented vs production-oriented) and the Managerial Grid (Blake and Mouton: concern for people vs concern for production; 9,9 team management is ideal).

Transactional and transformational leadership

• Contingency theories: Fiedler's LPC model, Hersey–Blanchard situational leadership, path–goal theory (House).