Unit 1: Introduction [15 Lecture Hours]
Organizational Behaviour (OB) is the systematic study of how people behave as individuals and as groups within an organization, and how organizational systems influence that behaviour. This unit explains the basic meaning and levels of OB, its assumptions and contributing disciplines, individual behaviour and mental processes, emotions and cognitive dissonance, and the major behavioural challenges faced by modern managers.
Tested Topics
- Contributing disciplines to organizational behavior — 3x (2082, 2081, 2080)
- Basic assumptions of organizational behavior — 2x (2080, 2078)
- Mental processes: beliefs, attitudes, values, needs and motives — 2x (2082, 2081)
- Cognition — 1x (2081)
- Concept of organizational behavior — 1x (2082)
- Importance of organizational behavior — 1x (2078)
- Managerial challenges in OB — 1x (2078)
1.1 Concept of Organizational Behaviour
Definition
Organizational Behaviour (OB) is the systematic study of the behaviour of individuals and groups in organizations and the effect of organizational structures and systems on their behaviour.
In easy terms, OB studies how people behave at work, why they behave that way, and how their behaviour affects the organization. It helps us understand employees, teams, managers, workplace relationships, motivation, communication, conflict, and performance.
Detailed Explanation
An organization may have money, technology, buildings, machines, policies, and plans, but these resources become useful only when people work with them. Employees do not behave like machines. They have different personalities, beliefs, emotions, values, expectations, needs, skills, and experiences.
Organizational Behaviour therefore examines the human side of organizations. It tries to understand behaviour so that managers can create conditions in which employees and organizations can perform effectively.
Core Elements of Organizational Behaviour
- People: Individuals and groups who perform organizational activities.
- Structure: The formal arrangement of jobs, authority, responsibility, departments, and relationships.
- Technology: Tools, machines, systems, and methods used to perform work.
- Environment: External forces such as customers, competitors, government, society, technology, and economic conditions.
These elements continuously interact. For example:
New technology introduced → employees learn new methods → job roles change → attitudes and relationships may change → organizational performance changes.
Nature of Organizational Behaviour
- Systematic study: OB does not depend only on personal opinion. It uses concepts, research, observation, and evidence to understand behaviour.
- Human-centered: Its main concern is people and their behaviour at work.
- Interdisciplinary: It receives knowledge from psychology, sociology, social psychology, anthropology, political science, and related areas.
- Goal-oriented: It helps connect employee behaviour with individual and organizational objectives.
- Contingency-oriented: One management approach does not work in every situation. Behaviour depends on the person, group, task, culture, and environment.
- Dynamic: Human behaviour and organizational environments continuously change.
- Applied: OB knowledge is used to solve practical workplace problems involving motivation, leadership, communication, conflict, teamwork, and change.
Importance of Organizational Behaviour
Managers work through people. Understanding behaviour therefore improves the manager's ability to deal with employees and organizational situations.
- Understanding employees: OB explains why people differ in attitudes, motivation, perception, and performance.
- Improving motivation: Managers can understand employee needs and create suitable incentives and work conditions.
- Building effective teams: Knowledge of group behaviour helps improve cooperation, trust, coordination, and teamwork.
- Improving communication: OB helps managers identify barriers to communication and build better interpersonal relationships.
- Managing conflict: It helps identify the causes of disagreements and select suitable conflict-management approaches.
- Developing leadership: Managers learn how leadership behaviour influences employee attitudes and performance.
- Managing change: OB explains resistance to change and helps organizations introduce change more effectively.
- Increasing organizational effectiveness: Better human behaviour can improve productivity, satisfaction, commitment, quality, and organizational performance.
Let's Clarify
A football club may have a good stadium, equipment, budget, and strategy. Yet success also depends on players trusting one another, accepting leadership, remaining motivated, communicating during the game, and handling pressure. Organizations work in a similar way. OB studies these human factors inside the workplace.
Summary
- Organizational Behaviour studies individual and group behaviour within organizational settings.
- Its central focus is understanding, explaining, and improving human behaviour at work.
- People, structure, technology, and environment are major elements affecting behaviour.
- OB is systematic, interdisciplinary, applied, dynamic, and contingency-oriented.
- Managers use OB knowledge to improve motivation, leadership, teamwork, communication, change, and performance.
Test Yourself
- What is Organizational Behaviour and what does it study?
- Why is Organizational Behaviour useful for managers?
- Define Organizational Behaviour. (संगठनात्मक व्यवहारलाई परिभाषित गर्नुहोस् ।) (2082)
Hints:
- Systematic study of individual behaviour, group behaviour, and organizational systems within the workplace.
- It helps managers understand employees and improve motivation, leadership, communication, teamwork, conflict management, change, and effectiveness.
- Define OB as systematic study of individuals and groups in organizations and the influence of organizational systems on their behaviour.
1.2 Levels of Organizational Behaviour Analysis
Definition
Levels of OB analysis are the different levels at which workplace behaviour is studied: the individual level, group level, and organizational-system level.
The behaviour of an organization can be understood by moving from one employee, to teams of employees, and finally to the organization as a complete system.
Detailed Explanation
Organizations are made of people, people work in groups, and groups operate within a larger organizational structure. Therefore, OB cannot be understood from only one level.
1. Individual Level
The individual level examines the behaviour and characteristics of a single employee.
Major variables include:
- personality,
- perception,
- values,
- attitudes,
- learning,
- motivation,
- emotions,
- decision-making,
- job satisfaction.
Example: Two employees receiving the same task may react differently because they have different abilities, personalities, expectations, and motivation.
2. Group Level
The group level studies how people behave when they interact with other people in teams and work groups.
Major variables include:
- group structure,
- group norms,
- communication,
- leadership,
- power,
- conflict,
- teamwork,
- group decision-making.
Example: An employee who performs well individually may perform poorly in a team if there is weak communication or interpersonal conflict.
3. Organizational-System Level
The organizational-system level examines the organization as a complete system and studies how organizational structures and practices influence behaviour.
Major variables include:
- organizational structure,
- organizational culture,
- human resource practices,
- organizational policies,
- technology,
- strategy,
- organizational change.
Relationship Among the Three Levels
The three levels influence one another:
Individual behaviour → affects group behaviour → affects organizational performance.
At the same time:
Organizational culture and policies → influence groups → influence individual attitudes and behaviour.
| Level | Main Focus | Examples of Variables |
|---|---|---|
| Individual | Behaviour of one employee | Personality, perception, values, attitudes, motivation |
| Group | Behaviour among interacting employees | Leadership, communication, conflict, norms, teamwork |
| Organizational System | Behaviour created by the organization as a whole | Structure, culture, policies, technology, strategy |
Summary
- OB is studied at individual, group, and organizational-system levels.
- The individual level focuses on personal characteristics and behaviour.
- The group level focuses on interaction, leadership, communication, conflict, and teamwork.
- The organizational-system level studies structure, culture, policies, strategy, and technology.
- All three levels continuously influence one another.
Test Yourself
- What are the three levels of OB analysis?
- Differentiate individual, group, and organizational-system levels of analysis.
Hints:
- Individual, group, and organizational-system levels.
- Individual = personal behaviour; group = interaction among people; organizational-system = structure, culture, policies, and organization-wide factors.
1.3 Organizational Behaviour System
Definition
An Organizational Behaviour System is an interconnected arrangement in which individual and organizational inputs pass through behavioural processes to produce outcomes, while feedback helps improve future behaviour and decisions.
Employees and organizations bring certain inputs into the workplace. These inputs affect how people think, communicate, lead, cooperate, and make decisions. Those behaviours then create results such as performance, satisfaction, commitment, or conflict.
Detailed Explanation
OB can be viewed as an input-process-output system. This means behaviour is not isolated. It develops from certain conditions, passes through behavioural processes, and creates consequences.
1. Inputs
Inputs are the factors that enter the organizational behaviour system.
Individual inputs include:
- personality,
- abilities,
- values,
- beliefs,
- attitudes,
- experience,
- needs.
Organizational inputs include:
- structure,
- culture,
- leadership arrangements,
- technology,
- policies,
- reward systems,
- working conditions.
2. Behavioural Processes
Inputs influence important workplace processes such as:
- perception,
- motivation,
- communication,
- leadership,
- decision-making,
- teamwork,
- conflict,
- learning.
3. Outcomes
Outcomes are the results produced by employee and organizational behaviour.
Possible individual and organizational outcomes include:
- job performance,
- job satisfaction,
- employee commitment,
- productivity,
- absenteeism,
- employee turnover,
- innovation,
- organizational effectiveness.
4. Feedback
Feedback means information about outcomes is returned to the system and used to modify future inputs, policies, decisions, or behaviour.
For example:
Low employee satisfaction → management receives feedback → leadership or reward system is reviewed → working conditions change → employee attitudes may improve.
Let's Clarify
A university group project works as a small system. Members bring different skills and attitudes as inputs. Communication and coordination are the processes. The final report and group marks are outcomes. Feedback from the teacher then influences how the group handles its next assignment.
Summary
- OB can be understood as an input-process-output-feedback system.
- Individual and organizational factors form the major inputs.
- Behavioural processes include motivation, communication, leadership, teamwork, and decision-making.
- Outcomes include performance, satisfaction, commitment, productivity, and effectiveness.
- Feedback allows the organization to adjust future actions and conditions.
Test Yourself
- Explain the organizational behaviour system using the input-process-output model.
- What is the role of feedback in an OB system?
Hints:
- Inputs such as personality, structure, and culture influence behavioural processes, which produce individual and organizational outcomes.
- Feedback provides information about outcomes and helps modify future behaviour, policies, and organizational inputs.
1.4 Basic Assumptions of Organizational Behaviour
Definition
Basic assumptions of Organizational Behaviour are fundamental ideas about people and organizations that guide how managers understand and treat employees.
OB begins with the idea that employees are human beings with individual differences, personal needs, emotions, dignity, and social relationships. Therefore, management cannot treat all employees as identical resources.
Detailed Explanation
1. Individual Differences
Every person is unique. Employees differ in personality, intelligence, ability, background, experience, attitudes, values, and expectations.
This means one method of motivation or supervision may not work equally well for everyone.
2. Perception
People may experience the same situation but interpret it differently. Behaviour is influenced not only by reality but also by how a person perceives reality.
Example: A manager's strict deadline may be seen by one employee as a useful challenge and by another as excessive pressure.
3. The Whole Person
An organization employs a whole person, not only a person's skills. Employees bring emotions, family experiences, beliefs, health, values, hopes, and worries into the workplace.
Managers therefore need to understand that work behaviour can be influenced by both workplace and personal factors.
4. Motivated Behaviour
Human behaviour usually has causes and purposes. Employees act because they want to satisfy certain needs, achieve goals, avoid undesirable consequences, or obtain valued outcomes.
Managers cannot directly create motivation inside a person, but they can create conditions that support motivated behaviour.
5. Desire for Involvement
Many employees want opportunities to contribute ideas, make meaningful decisions, develop skills, and participate in matters affecting their work.
Participation can increase psychological ownership and commitment when employees believe their contribution is genuinely valued.
6. Human Dignity and Value of the Person
Employees must be treated as human beings with dignity rather than merely as economic resources. Each person deserves respect regardless of job level.
This assumption supports respectful leadership, fair treatment, ethical management, and recognition of human rights.
7. Social Systems
Organizations are social systems. People form formal and informal relationships, groups, friendships, norms, and communication networks.
Therefore, an employee's behaviour is influenced by other employees and by the social environment around the job.
8. Mutuality of Interest
Organizations need people to achieve organizational goals, and people need organizations to achieve many personal and professional goals.
There is therefore a mutual interest between employees and organizations.
Employee effort helps organization → organization provides rewards and opportunities → both sides gain.
9. Holistic Concept
The holistic concept means individual behaviour, group behaviour, organizational systems, and external environmental factors should be considered together.
A workplace problem rarely has only one cause. For example, poor performance may involve ability, motivation, leadership, team conflict, technology, or organizational policy.
| Assumption | Main Idea | Managerial Meaning |
|---|---|---|
| Individual differences | People are unique | Use flexible approaches |
| Perception | People interpret situations differently | Understand employee viewpoints |
| Whole person | Employees bring their complete selves to work | Consider broader human needs |
| Motivated behaviour | Behaviour has causes and goals | Create supportive motivational conditions |
| Desire for involvement | People want meaningful participation | Provide appropriate participation |
| Human dignity | People have inherent value | Treat employees respectfully and ethically |
| Social systems | Workplaces contain social relationships | Consider group and informal influences |
| Mutuality of interest | Employees and organizations depend on each other | Align individual and organizational goals |
| Holistic concept | Behaviour results from interconnected factors | Analyze problems from multiple levels |
Summary
- OB assumes that employees differ from one another and perceive situations differently.
- Employees must be understood as whole people whose behaviour is motivated by needs and goals.
- People usually value dignity, fair treatment, meaningful involvement, and social relationships.
- Organizations and employees have mutual interests because each depends on the other.
- The holistic approach examines individual, group, organizational, and environmental factors together.
Test Yourself
- Explain the major assumptions of Organizational Behaviour.
- List out any four assumptions of organizational behaviour. (2080)
- Point out any two basic assumptions of organizational behaviour. (2078)
Hints:
- Discuss individual differences, perception, whole person, motivated behaviour, involvement, dignity, social systems, mutuality of interest, and holistic concept.
- Any four may include individual differences, whole person, motivated behaviour, human dignity, perception, or social system.
- State any two clearly, such as individual differences and whole person, with their basic meanings.
1.5 Contributing Disciplines to Organizational Behaviour
Definition
Contributing disciplines to Organizational Behaviour are the fields of study whose concepts and research methods help explain human behaviour in organizations.
OB is not an isolated subject. It combines knowledge about individuals, groups, cultures, power, relationships, and societies from several disciplines.
Detailed Explanation
The major contributing disciplines include psychology, social psychology, sociology, anthropology, and political science.
1. Psychology
Psychology is the scientific study of individual behaviour and mental processes.
Psychology mainly contributes to the individual level of OB.
Major contributions include:
- personality,
- perception,
- learning,
- motivation,
- attitudes,
- emotions,
- job satisfaction,
- decision-making,
- employee selection and training.
Example: Motivation theories help managers understand why employees differ in effort and persistence.
2. Social Psychology
Social psychology studies how individuals influence one another and how people's thoughts and behaviour are affected by social interaction.
Its contributions include:
- attitude change,
- communication,
- group processes,
- group decision-making,
- interpersonal relationships,
- social influence,
- conflict.
3. Sociology
Sociology studies people in relation to society, groups, institutions, and social systems.
Its major contributions to OB include:
- group behaviour,
- organizational structure,
- formal and informal organizations,
- organizational change,
- communication networks,
- power relationships,
- organizational systems.
4. Anthropology
Anthropology is the study of human societies, cultures, values, customs, and ways of life.
Its major contributions include:
- organizational culture,
- cultural values,
- cross-cultural behaviour,
- differences among societies,
- organizational environment.
Anthropology is especially useful when organizations operate across different countries and cultural environments.
5. Political Science
Political science studies political behaviour, power, authority, conflict, and the distribution of resources.
Its contributions to OB include:
- power,
- organizational politics,
- conflict,
- coalition formation,
- authority,
- negotiation.
| Discipline | Main Focus | Major Contribution to OB |
|---|---|---|
| Psychology | Individual behaviour | Personality, motivation, perception, learning, attitudes |
| Social Psychology | Interaction among people | Communication, attitude change, group processes, social influence |
| Sociology | Groups and social systems | Group behaviour, structure, change, communication networks |
| Anthropology | Culture and societies | Organizational culture, values, cross-cultural behaviour |
| Political Science | Power and political systems | Power, politics, conflict, negotiation |
Let's Clarify
Suppose a team has low performance. Psychology may examine each employee's motivation. Social psychology may examine interaction among members. Sociology may examine the team's structure. Anthropology may examine cultural differences. Political science may examine power struggles. OB combines these views to understand the complete situation.
Summary
- OB is interdisciplinary and draws knowledge from several behavioural and social sciences.
- Psychology mainly explains individual behaviour and mental processes.
- Social psychology explains interpersonal influence and group interaction.
- Sociology and anthropology contribute knowledge about social systems and culture.
- Political science explains organizational power, politics, conflict, and negotiation.
Test Yourself
- How does psychology differ from sociology in its contribution to OB?
- What are the major contributing disciplines to the field of organizational behaviour? Explain. (संगठनात्मक व्यवहारको क्षेत्रमा प्रमुख योगदान गर्ने विषयहरू के-के हुन् ? व्याख्या गर्नुहोस् ।) (2082)
- OB is not an identical subject but it is constituted with the help of many other subjects. Discuss the statement. (2081)
- Explain in brief the major contributing disciplines to the field of organizational behaviour. (2080)
Hints:
- Psychology mainly studies the individual; sociology mainly studies groups, social relationships, and organizational systems.
- Explain psychology, social psychology, sociology, anthropology, and political science with their respective contributions.
- OB is interdisciplinary. Show how concepts from several behavioural and social sciences combine to explain workplace behaviour.
- Briefly describe each major discipline and mention the OB concepts it contributes.
1.6 Individual Behaviour as an Input-Output System
Definition
Individual behaviour as an input-output system means that a person's behaviour results from personal and environmental inputs that are mentally processed before producing observable actions and outcomes.
An employee does not react automatically to every situation. Personal characteristics and environmental conditions enter the individual, the person interprets them, and then produces a behavioural response.
Detailed Explanation
The process can be expressed as:
Personal inputs + environmental inputs → mental processing → behaviour → outcomes.
1. Personal Inputs
Personal inputs are characteristics that the individual brings into a situation.
- personality,
- ability,
- knowledge,
- experience,
- beliefs,
- values,
- attitudes,
- needs,
- motives,
- emotions.
2. Environmental Inputs
Environmental inputs come from the situation surrounding the person.
- leadership style,
- organizational culture,
- work group,
- job design,
- reward system,
- technology,
- working conditions,
- economic and social environment.
3. Mental Processing
The individual interprets the inputs rather than responding mechanically. Mental processing may involve:
- perception,
- thinking,
- evaluation,
- learning,
- comparison with personal values,
- emotional reaction,
- decision-making.
4. Behavioural Output
After processing the situation, the individual produces observable behaviour.
Examples include:
- working harder,
- helping coworkers,
- avoiding responsibility,
- communicating,
- showing creativity,
- resisting change,
- being absent,
- leaving the organization.
5. Outcomes and Feedback
The behaviour produces consequences such as good performance, rewards, criticism, satisfaction, conflict, or failure. These outcomes become new information and can influence future behaviour.
Example:
Recognition from manager → employee interprets recognition positively → motivation increases → employee puts in greater effort → performance improves → additional positive feedback strengthens behaviour.
Summary
- Individual behaviour can be understood as an input-processing-output system.
- Personal inputs include personality, values, needs, attitudes, abilities, and experience.
- Environmental inputs include leadership, culture, groups, jobs, rewards, and working conditions.
- The employee mentally interprets inputs before choosing a behavioural response.
- Outcomes and feedback influence future behaviour.
Test Yourself
- Explain individual behaviour as an input-output system.
- Differentiate personal inputs and environmental inputs with examples.
- Why can two employees respond differently to the same workplace situation?
Hints:
- Personal and environmental inputs are interpreted through mental processes, producing behaviour and outcomes.
- Personal inputs exist within the individual; environmental inputs come from the surrounding workplace and external setting.
- They may differ in personality, perception, beliefs, values, experience, needs, and motives.
1.7 Mental Processes: Beliefs, Attitudes, Values, Needs, Motives and Behaviour
Definition
Mental processes are internal psychological activities through which individuals interpret information, evaluate situations, develop preferences, experience needs, form motives, and choose behaviour.
People normally act according to what they believe, value, need, feel, and expect. These internal processes therefore help explain why two employees facing the same situation may behave differently.
Detailed Explanation
1. Beliefs
A belief is an idea or conviction that a person accepts as true about something.
Beliefs may concern:
- oneself,
- other people,
- management,
- the organization,
- work,
- success and failure.
Example: An employee who believes that management rewards good performance may willingly put in greater effort.
Beliefs influence how people interpret events and provide a foundation for attitudes and decisions.
2. Attitudes
An attitude is a learned tendency to evaluate a person, object, event, or situation positively or negatively.
An attitude commonly includes three connected components:
- Cognitive component: what a person believes or thinks.
- Affective component: what a person feels.
- Behavioural component: how the person intends or tends to act.
Example:
“My job gives me opportunities to learn” = belief.
“I enjoy this job” = feeling.
“I want to remain in this organization” = behavioural tendency.
3. Values
Values are deep beliefs about what is desirable, right, worthwhile, or important in life.
Examples include:
- honesty,
- achievement,
- freedom,
- security,
- equality,
- respect,
- responsibility.
Values are generally broader and more stable than attitudes. They act as standards that guide judgments and choices.
Example: An employee who strongly values fairness may react negatively if rewards appear to be distributed unfairly.
4. Needs
A need is a state of deficiency or desire that creates internal tension and encourages a person to seek satisfaction.
Needs may include:
- physical needs,
- security,
- social connection,
- recognition,
- achievement,
- personal growth.
When a need is unsatisfied, it can create energy for action.
5. Motives
A motive is an internal drive or reason that directs behaviour toward a particular goal.
A need tells us what is lacking, while a motive gives behaviour direction toward satisfying that need.
Example:
Need for achievement → motive to succeed → extra preparation and effort → higher-quality performance.
6. Behaviour
Behaviour is an individual's observable action or response to internal and external conditions.
Behaviour may include:
- effort,
- communication,
- cooperation,
- decision-making,
- attendance,
- performance,
- conflict,
- helping others.
Relationship Among Mental Processes and Behaviour
The factors are closely connected rather than independent.
Beliefs influence attitudes → values guide judgments → needs create tension → motives direct action → behaviour produces outcomes.
However, behaviour is also affected by ability, opportunities, social pressures, organizational rules, and environmental conditions. Therefore, a positive attitude does not always guarantee a specific behaviour.
| Concept | Meaning | Example |
|---|---|---|
| Belief | What a person accepts as true | “Hard work is recognized here.” |
| Attitude | Positive or negative evaluation | “I like my job.” |
| Value | What a person considers important | Fairness and honesty |
| Need | Unsatisfied condition or desire | Need for recognition |
| Motive | Drive directing behaviour toward a goal | Working hard to gain recognition |
| Behaviour | Observable action | Putting extra effort into a project |
Common Mistake
Needs and motives are related but not identical. A need represents something a person wants or lacks. A motive is the internal force that directs behaviour toward satisfying that need.
Summary
- Beliefs are ideas accepted as true, while attitudes are positive or negative evaluations.
- Values are deeper standards about what is desirable or important.
- Needs represent deficiencies or desires that can create tension.
- Motives direct behaviour toward particular goals or need satisfaction.
- These mental processes interact to influence choices, effort, and workplace behaviour.
Test Yourself
- Differentiate beliefs, attitudes, values, needs, and motives.
- Examine how individual mental processes such as beliefs, attitudes, values, needs, and motives influence behaviour in organizations. (विश्वास, दृष्टिकोण, मूल्य, आवश्यकता र प्रेरणाजस्ता व्यक्तिगत मानसिक प्रक्रियाहरूले संगठनभित्रको व्यवहारलाई कसरी प्रभावित गर्छन्, विश्लेषण गर्नुहोस्।) (2082)
- State the dimensions of mental process. (2081)
Hints:
- Belief = accepted idea; attitude = evaluation; value = standard of importance; need = deficiency/desire; motive = drive toward a goal.
- Explain each mental process and show how it influences perception, choices, motivation, effort, decisions, and workplace behaviour.
- Major dimensions represented in this unit are beliefs, attitudes, values, needs, and motives.
1.8 Emotions and Cognitive Dissonance
Definition
Emotions are relatively intense feelings directed toward a person, event, object, or situation.
Cognitive dissonance is the psychological discomfort experienced when a person's beliefs, attitudes, values, or behaviour are inconsistent with one another.
An employee may feel happy, angry, anxious, proud, frustrated, or disappointed at work. At the same time, discomfort can arise when the employee behaves in a way that conflicts with personal beliefs or values.
Detailed Explanation
Emotions in Organizational Behaviour
Emotions affect how employees think, communicate, make decisions, respond to customers, cooperate with coworkers, and handle pressure.
Common workplace emotions include:
- joy,
- pride,
- anger,
- fear,
- anxiety,
- frustration,
- disappointment,
- enthusiasm.
Sources of Workplace Emotions
- relationships with managers and coworkers,
- workload and deadlines,
- recognition and rewards,
- success or failure,
- job security,
- customer behaviour,
- fair or unfair treatment,
- organizational change.
Effects of Emotions on Behaviour
Positive emotions can support:
- cooperation,
- creativity,
- helping behaviour,
- job satisfaction,
- constructive communication.
Strong negative emotions may contribute to:
- conflict,
- poor concentration,
- stress,
- withdrawal,
- impulsive decisions.
Cognitive Dissonance
Cognitive dissonance occurs when a person notices inconsistency between two cognitions or between cognition and behaviour.
A cognition may be a belief, value, attitude, perception, or piece of knowledge.
Example:
An employee believes, “Honesty is essential”, but is asked to hide an important problem from a customer.
This creates inconsistency:
Value: honesty → behaviour expected: conceal information → psychological discomfort.
Ways People Reduce Cognitive Dissonance
People generally try to reduce the discomfort by restoring consistency. They may:
- Change behaviour: Refuse to perform the action that conflicts with their values.
- Change attitude or belief: Convince themselves that the issue is not very serious.
- Add new justification: Find additional reasons that make the behaviour appear acceptable.
- Reduce importance: Decide that the inconsistency is not important enough to worry about.
Organizational Relevance of Cognitive Dissonance
Dissonance can occur when:
- employees are required to perform tasks conflicting with personal values,
- management decisions contradict stated organizational values,
- employees publicly support decisions they privately oppose,
- expected job conditions differ from actual conditions.
Persistent unresolved dissonance can influence attitudes, satisfaction, commitment, stress, and intentions to leave the organization.
Let's Clarify
A student may strongly believe that copying assignments is wrong. If the student copies because of time pressure, the conflict between the belief and action creates discomfort. The student may stop copying, justify it by saying the deadline was unreasonable, or convince themselves that the assignment was unimportant. Cognitive dissonance works in the same way in organizations.
| Concept | Main Meaning | Example |
|---|---|---|
| Emotion | Intense feeling connected to a situation | Anger after unfair treatment |
| Cognitive Dissonance | Discomfort from inconsistency between beliefs, values, attitudes, or behaviour | Valuing honesty but being told to mislead a customer |
Summary
- Emotions are feelings directed toward people, events, objects, or situations.
- Workplace emotions influence communication, decisions, relationships, satisfaction, and performance.
- Cognitive dissonance occurs when beliefs, values, attitudes, or behaviour are inconsistent.
- Dissonance creates psychological discomfort and motivates people to restore consistency.
- People may reduce dissonance by changing behaviour, changing beliefs, adding justification, or reducing the importance of the inconsistency.
Test Yourself
- What are emotions and how can they influence workplace behaviour?
- What is cognitive dissonance? Explain with an organizational example.
- How can an individual reduce cognitive dissonance?
Hints:
- Emotions are intense feelings toward situations; they affect decisions, relationships, communication, motivation, and performance.
- Dissonance is psychological discomfort from inconsistency. Example: valuing honesty but being required to mislead a customer.
- Change behaviour, change attitude or belief, add justification, or reduce the importance of the conflict.
1.9 New Challenges for Managers in Organizational Behaviour
Definition
Managerial challenges in Organizational Behaviour are changing workplace conditions that require managers to understand and manage employee behaviour in new and increasingly complex situations.
Managers now deal with employees from different backgrounds, rapid technological change, global competition, flexible work arrangements, ethical pressures, changing expectations, and continuous organizational change.
Detailed Explanation
1. Globalization
Organizations increasingly interact with international customers, suppliers, competitors, and employees. Managers may need to work with people whose languages, cultural values, communication styles, and attitudes toward authority differ.
The challenge is to coordinate behaviour without assuming that management practices accepted in one culture will work equally well in another.
2. Workforce Diversity
Workforce diversity refers to differences among employees in characteristics, backgrounds, experiences, abilities, perspectives, and ways of thinking.
Diversity can provide wider knowledge and ideas, but managers must create fair systems and prevent discrimination, exclusion, and unnecessary interpersonal conflict.
3. Technological Change
Automation, digital systems, data analytics, artificial intelligence, and communication technologies continuously change jobs and required skills.
Managers must deal with:
- employee learning needs,
- fear of job displacement,
- changes in job design,
- digital communication,
- new performance expectations.
4. Remote and Flexible Work
Remote and hybrid work reduce the amount of direct face-to-face interaction between managers and employees.
Managers therefore need new ways to maintain:
- communication,
- coordination,
- trust,
- team identity,
- employee engagement.
5. Managing Organizational Change
Organizations frequently introduce new technology, structures, strategies, processes, and work methods. Employees may resist change because of uncertainty, fear, loss of control, or disruption of familiar routines.
Managers must explain change clearly, involve employees where appropriate, provide support, and manage behavioural resistance.
6. Innovation and Creativity
Competitive environments require organizations to develop new ideas, products, services, and processes.
Managers need to create conditions where employees can question old methods, suggest new solutions, learn from reasonable failure, and share ideas without unnecessary fear.
7. Ethical Behaviour
Managers may face pressure to meet targets while also protecting customers, employees, investors, society, and organizational integrity.
Ethical challenges arise in areas such as:
- fair treatment,
- privacy,
- use of organizational resources,
- conflicts of interest,
- truthful communication,
- performance reporting.
8. Employee Well-Being and Work-Life Balance
Long hours, heavy workload, uncertainty, constant digital connectivity, and role conflict may create stress and exhaustion.
Managers need to consider employee well-being while maintaining organizational performance.
9. Changing Employee Expectations
Employees may expect more than financial compensation. Expectations may include:
- meaningful work,
- fair treatment,
- career development,
- recognition,
- flexibility,
- participation,
- respectful leadership.
10. Improving Quality and Productivity
Managers face continuing pressure to improve the quality of products and services while controlling costs and using resources efficiently.
OB contributes by helping managers improve motivation, teamwork, job design, communication, leadership, and employee involvement.
11. Managing Conflict and Cooperation
Greater specialization and diversity can increase differences in goals, values, priorities, and viewpoints.
The challenge is not to eliminate every disagreement. Managers need to prevent destructive conflict while allowing constructive differences that can improve decisions.
12. Creating Customer-Oriented Behaviour
In service organizations, customer experience often depends directly on employee behaviour. Managers must therefore create conditions in which employees understand customer needs and have the motivation and authority to respond appropriately.
| Challenge | Main Behavioural Issue |
|---|---|
| Globalization | Cross-cultural differences |
| Workforce diversity | Inclusion, fairness, different perspectives |
| Technology | Skill change, uncertainty, new work methods |
| Remote work | Trust, coordination, communication |
| Organizational change | Resistance and uncertainty |
| Innovation | Creativity and willingness to experiment |
| Ethics | Responsible decisions and fair behaviour |
| Well-being | Stress and work-life balance |
| Changing expectations | Meaning, growth, flexibility, recognition |
| Productivity and quality | Effort, cooperation, effectiveness |
Summary
- Managers face behavioural challenges created by globalization, diversity, technology, and changing work arrangements.
- Continuous organizational change requires managers to understand employee resistance and uncertainty.
- Ethics, employee well-being, work-life balance, and changing expectations have become major management concerns.
- Managers must encourage cooperation, creativity, learning, quality, and customer-oriented behaviour.
- OB provides concepts that help managers understand and respond to these changing human problems.
Test Yourself
- What major changes in modern workplaces create new challenges for managers?
- How do technology and workforce diversity affect managerial behaviour?
- Why do managers need to study OB? Discuss the major challenges faced by managers in OB. (2078)
Hints:
- Globalization, diversity, technology, remote work, change, innovation, ethics, well-being, employee expectations, and productivity pressures.
- Technology changes jobs and skills, while diversity requires inclusive management of different backgrounds, values, and perspectives.
- OB helps managers understand and influence employee behaviour. Discuss globalization, diversity, technology, change, ethics, quality, well-being, communication, and employee expectations.
Extra: Topics Asked in Exams But Not in Syllabus
These topics have appeared in past papers. They are not listed in the syllabus but you should know them.
Cognition (2081 exam)
Cognition refers to the mental processes through which a person acquires, interprets, stores, evaluates, and uses information.
It includes activities such as:
- perception,
- thinking,
- reasoning,
- remembering,
- judgment,
- problem-solving,
- decision-making.
In organizations, cognition affects how employees understand instructions, interpret the behaviour of coworkers, evaluate managers, solve problems, and make decisions.
For example, two employees may receive exactly the same feedback from a manager. One may interpret it as useful guidance, while another may interpret it as personal criticism. The external event is the same, but their cognitive interpretation differs.
Summary
- Cognition concerns how people acquire, process, interpret, and use information.
- It includes perception, thinking, memory, judgment, reasoning, and decision-making.
- Cognition helps explain why people interpret the same workplace event differently.
- Employee decisions and behavioural responses are strongly influenced by cognitive interpretation.
Test Yourself
- How does cognition influence workplace behaviour?
- What is cognition? (2081)
Hints:
- Cognition determines how employees interpret information, judge situations, solve problems, and select responses.
- Cognition is the mental process of acquiring, interpreting, storing, evaluating, and using information.
Exam Questions
- Define Organizational Behaviour. (संगठनात्मक व्यवहारलाई परिभाषित गर्नुहोस् ।) (2082)
- What are the major contributing disciplines to the field of organizational behaviour? Explain. (संगठनात्मक व्यवहारको क्षेत्रमा प्रमुख योगदान गर्ने विषयहरू के-के हुन् ? व्याख्या गर्नुहोस् ।) (2082)
- Examine how individual mental processes such as beliefs, attitudes, values, needs, and motives influence behaviour in organizations. (विश्वास, दृष्टिकोण, मूल्य, आवश्यकता र प्रेरणाजस्ता व्यक्तिगत मानसिक प्रक्रियाहरूले संगठनभित्रको व्यवहारलाई कसरी प्रभावित गर्छन्, विश्लेषण गर्नुहोस्।) (2082)
- State the dimensions of mental process. (2081)
- What is cognition? (2081)
- OB is not an identical subject but it is constituted with the help of many other subjects. Discuss the statement. (2081)
- List out any four assumptions of organizational behaviour. (2080)
- Explain in brief the major contributing disciplines to the field of organizational behaviour. (2080)
- Point out any two basic assumptions of organizational behaviour. (2078)
- Why do managers need to study OB? Discuss the major challenges faced by managers in OB. (2078)
Whole Chapter Summary
Concept of Organizational Behaviour
OB systematically studies individual and group behaviour within organizational settings. It helps explain how people, structure, technology, and the environment interact and affect organizational effectiveness.
Levels of OB Analysis
OB operates at three connected levels: individual, group, and organizational system. Individual behaviour affects groups, groups affect organizations, and organizational systems influence both groups and individuals.
Organizational Behaviour System
OB can be viewed as an input-process-output-feedback system. Individual and organizational inputs influence behavioural processes, which produce outcomes such as performance, satisfaction, commitment, and effectiveness.
Basic Assumptions
People are different, perceive situations differently, behave for reasons, and must be treated as whole persons with dignity. Organizations are social systems based on interdependence and mutual interests.
Contributing Disciplines
Psychology contributes knowledge about individuals, social psychology about interpersonal influence, sociology about groups and systems, anthropology about culture, and political science about power and conflict.
Individual Behaviour as an Input-Output System
Personal and environmental inputs are interpreted through mental processing. The interpretation leads to behaviour, which produces outcomes and feedback that influence future behaviour.
Mental Processes
Beliefs shape what people accept as true, attitudes express evaluations, values define what matters, needs create internal tension, and motives direct action. Together they influence workplace choices and behaviour.
Emotions and Cognitive Dissonance
Emotions influence decisions, communication, relationships, and performance. Cognitive dissonance is discomfort caused by inconsistency between beliefs, attitudes, values, or behaviour.
Managerial Challenges
Modern managers must deal with globalization, workforce diversity, technological change, remote work, ethics, employee well-being, innovation, organizational change, and changing employee expectations.
Last-Minute Revision Sheet
| Concept | Trigger Phrase | Recall Cue |
|---|---|---|
| Organizational Behaviour | Behaviour at work | Individual + group + organization |
| Individual Level | One employee | Personality, values, perception, motivation |
| Group Level | People interacting | Leadership, communication, norms, conflict |
| Organizational-System Level | Whole organization | Structure, culture, policies, technology |
| OB System | System flow | Inputs → processes → outcomes → feedback |
| Individual Differences | People are unique | No one-size-fits-all approach |
| Whole Person | Employee = complete human | Skills + emotions + needs + values |
| Motivated Behaviour | Behaviour has purpose | Needs and goals drive action |
| Human Dignity | Respect people | Human value beyond economic resource |
| Social System | Workplace relationships | Formal + informal groups |
| Psychology | Individual | Personality, motivation, perception |
| Social Psychology | Interpersonal influence | Attitudes, communication, group processes |
| Sociology | Groups and systems | Structure, relationships, organizational change |
| Anthropology | Culture | Values and cross-cultural behaviour |
| Political Science | Power | Politics, authority, conflict, negotiation |
| Individual Behaviour System | Person reacts after processing | Personal + environmental input → mental processing → behaviour |
| Belief | Accepted as true | What I think is true |
| Attitude | Evaluation | Positive or negative view |
| Value | What matters | Standard of importance |
| Need | Something lacking | Creates tension |
| Motive | Direction for action | Drive toward goal |
| Cognition | Mental information processing | Think, interpret, remember, judge |
| Emotion | Feeling toward situation | Affects behaviour and decisions |
| Cognitive Dissonance | Inconsistency discomfort | Belief/value conflicts with behaviour |
| Managerial Challenges | Changing workplace | Globalization + diversity + technology + change + ethics |
