Important Chapters

1. Motivation Concepts
Motivation is a force that energizes behavior, gives direction to behavior, and
underlies the tendency to persist.

2. Motivation: From Concepts to Applications

Early Theories of Motivation: Two factor theory & McClelland’s theory of needs
The Job Characteristic Model

3. Understanding work groups and work Teams

Work teams and team building
Problem-solving teams and self-managed teams

4. Leadership
Charismatic Leadership and visionary leadership
Legitimate power and Referent power
Contingency approach in leadership
Leadership Styles

5. Organizational Structure
Boundary less and virtual organization
New Design Options in Organizational Structure
Boundary Spanning
Centralization & Decentralization
Important Topics for Final Exams (from Book)
1. Boundary less and virtual organization
Boundary less organizations eliminate internal and external boundaries to foster
collaboration and flexibility. They focus on breaking down silos, promoting cross-
functional teams, and forming external partnerships.
Virtual organizations operate primarily through technology-mediated
communication and have geographically dispersed members. They rely on digital
tools and flexible work arrangements. While both promote flexibility and
collaboration, boundary less organizations address internal and external
boundaries, whereas virtual organizations primarily address geographical
boundaries through remote work and digital communication.

2. Early Theories of Motivation: Two factor theory & McClelland’s theory of

needs
David McClelland’s Theory of Needs
Also called “Acquired-Needs Theory”, states that our needs are acquired or
learned on the basis of our life experiences. It is centered on three needs, nAch,
nAff, nPow.
TWO FACTOR THEORY- Frederick Herzberg
The Herzberg Two-Factor Theory, also known as the Motivation-Hygiene Theory,
suggests that job satisfaction and dissatisfaction are influenced by two distinct sets of
factors: motivators and hygiene factors. Motivators are intrinsic factors that contribute
to job satisfaction, such as challenging work, recognition, growth opportunities, and a
sense of achievement. These factors enhance motivation and engagement.
Hygiene factors, on the other hand, are extrinsic factors that, when absent, can lead to
dissatisfaction, such as salary, job security, working conditions, and organizational
policies. However, their presence does not necessarily result in higher motivation and
satisfaction. According to the theory, to create a satisfying work environment,
organizations must focus on both motivators and hygiene factors, as they address
different aspects of employee needs.
3. The Job Characteristic Model
4. Charismatic Leadership and visionary leadership

Charismatic leadership focuses on the personal qualities and magnetism of the

leader, inspiring followers through their charm and charisma. It involves
building strong emotional connections and followers' trust in the leader's
abilities.

Visionary leadership emphasizes the leader's ability to articulate a compelling

vision for the future and inspire others to work towards that vision. Visionary
leaders provide a clear direction, set high goals, and motivate followers through
their inspiring vision and ability to communicate it effectively.

5. Legitimate power and Referent power

Legitimate power is based on a person's position or role within an organization

and the authority that comes with it. It is the power granted by formal
hierarchies and organizational structures.

Referent power stems from an individual's personal qualities, charisma, and

the respect and admiration they garner from others. It is based on trust,
identification, and the desire to emulate the leader.

6. Motivation Strategies

Goal Setting: Setting clear and challenging goals helps individuals focus their
efforts and provides a sense of direction. Goals should be specific, measurable,
attainable, relevant, and time-bound (SMART), and individuals should be
involved in the goal-setting process.

Rewards and Incentives: Providing rewards and incentives, such as bonuses,

promotions, recognition, or non-monetary rewards like employee of the month
programs or certificates, can motivate individuals by acknowledging their
efforts and achievements.

Employee Empowerment: Empowering employees by delegating decision-

making authority, giving them autonomy in their work, and involving them in
problem-solving and decision-making processes can increase motivation and
job satisfaction.
Performance Feedback: Regular and constructive feedback on performance
helps individuals understand how they are progressing and areas where they can
improve. It provides guidance and recognition, enhancing motivation and
promoting continuous growth.

Training and Development: Offering opportunities for skill development and

professional growth through training programs, workshops, mentoring, or
coaching can boost motivation by showing individuals that their organization
invests in their personal and career development.

7. Work teams and team building

Work Team. A Work Team refers to a group whose individual efforts result in a
performance that is greater than the sum of the individual input.
• A work team generates positive synergy through coordinated efforts. Individual
efforts result in a level of performance that is greater than the sum of those
individual inputs.
Creating Effective Teams.
• Key components making up effective teams are, Work Design, Composition,
Context (resources), and Process.
• Effective teams need to work together and take collective responsibility to
complete significant tasks. Let’s take each component separately:
1. Work Design. It includes variables like:
Freedom and autonomy
Skill variety
Task identity
Task significance
The evidence indicates that these characteristics enhance member motivation and
increase team effectiveness.
2. Composition:
Ability – KSAs, interpersonal & leadership skills.
Personality - Big Five personality model.
Role and diversity – members should be able to fill different roles in the team.
Team size - Managers should keep the size in the range of 5–12 people.
Flexibility – adaptable to suit the changing role.
Preference for team work - Not every employee is a team player. Willing team
members will prove better performers.

3. Context:
Adequate resources – Resources and support.
Leadership – Effective leadership.
Climate of trust – When members trust each other they are more willing to take
risks. By trusting their leadership, they are more willing to commit to their leader’s
goals and decisions.
Performance evaluation and rewards – Team oriented evaluation and reward
system must be implemented to reflect team performance; group-based appraisals,
profit sharing, gain sharing, small-group incentives are effective tools.
4. Process:
• Common purpose – Common and meaningful purpose (vision) provides
direction, momentum, and commitment for the team members.
• Specific goals – Purpose/ vision to be converted into specific, measurable, and
realistic performance goals.
• Team efficacy – Confidence/ belief in themselves that they can succeed .
• Conflict - Teams that are completely void of conflict are likely to become
stagnant.
• Social loafing - Watch out for such individuals.

8. Problem-solving teams and self-managed teams

Problem-Solving Teams: They are typically composed of 5–12 employees from
the same department who meet for a few hours each week to discuss ways of
improving quality, efficiency, and the work environment.
Self-Managed Teams:
• These groups of 10–15 employees perform highly related or interdependent
jobs and take on many of the responsibilities of their former supervisors.
• This includes planning and scheduling of work, assigning tasks to members,
collective control over the pace of work, making operating decisions, and taking
action on problems.
• Fully self-managed work teams even select their own members and have the
members evaluate each other’s performance.
9. Contingency approach in leadership

Contingency theories have proposed two moderating variables, i.e. “degree of

structure” and leader-member relationship, which affect leadership effectiveness.
Following are the five Contingency theories:

Situational Leadership Theory (SLT). A contingency theory that focuses on

followers’ readiness. The term readiness refers to “the extent to which people have
the ability and willingness to accomplish a specific task.”
According to SLT theory, role & relationship dimensions have been combined
with following specific behaviors:
• Telling (high task – low relationship). The leader defines roles and tells people
what, how, when, and where to do various tasks. It emphasizes directive
behavior.
• Selling (high task– high relationship). The leader provides both directive
behavior and supportive behavior.
• Participating (low task– high relationship). The leader and follower share in
decision making, with the main role of the leader being facilitating and
communicating.
• Delegating (low task– low relationship). The leader provides little direction or
support.
The final component of this theory refers to four stages of follower’s readiness:
• Stage-R1. People are neither competent nor confident (both unable and
either unwilling or too insecure to take responsibility).
• Stage-R2. People are unable but willing to do the necessary job task. They
are motivated but lack appropriate skills.
• Stage-R3. People are able but unwilling or too apprehensive to do what
leader wants.
• Stage-R4. People are both able and willing to do what is asked of them.
Path-Goal theory (by Robert House)
The term path-goal is derived from the belief that effective leaders clarify the path
to help their followers achieve their work goals.
House identified four leadership behaviors:
 The directive leader lets followers know what is expected of them, etc.
 The supportive leader is friendly and shows concern for the needs of followers.
 The participative leader consults with followers and uses their suggestions
before making a decision.
 The achievement-oriented leader sets challenging goals and expects followers
to perform at their highest level.

10. Leadership Styles

Autocratic style – described a leader who dictated work methods, made unilateral
decisions, & limited employee participation.
Democratic style – described a leader who involved employees in decision-
making, delegated authority and used feedback as an opportunity for coaching
employees.
Laisses-faire style – described a leader who lets the group to make decisions and
complete work in whatever way it considers fit.
10.Reward Strategies
Reward strategies in organizational behavior refer to the plans and approaches that
organizations use to motivate and reward their employees for their performance
and contributions. These strategies aim to create an environment that encourages
employee engagement, productivity, and overall satisfaction. Here are some
commonly used reward strategies in organizational behavior:
Monetary Rewards: This includes financial incentives such as base pay, bonuses,
profit sharing, and stock options. Monetary rewards are typically tied to individual
or team performance and can serve as powerful motivators.
Non-Monetary Rewards: These rewards focus on non-financial incentives that
recognize and appreciate employees' efforts and achievements. Examples include
recognition programs, certificates, plaques, public praise, flexible work
arrangements, extra time off, or special privileges.
Performance-Based Rewards: Performance-based rewards are directly linked to
individual or team performance goals and achievements. They can be in the form
of bonuses, commissions, or merit-based salary increases. These rewards motivate
employees to improve their performance and achieve specific targets.

11.Boundary Spanning

Boundary spanning in organizational behavior refers to the activities and processes

through which individuals or units within an organization interact and connect with
external entities or stakeholders. It involves bridging the gaps between different
groups, departments, or organizations to facilitate communication, collaboration,
and the exchange of resources, information, or ideas.

Boundary spanning involves exchanging information, building relationships,

acquiring resources, and coordinating diverse interests across organizational
boundaries. It facilitates market intelligence, collaboration, resource access, and
synergy for innovation and long-term success.

12.Centralization & Decentralization

In centralization, key decisions are made by a few top-level managers or a central
authority, with limited input from lower-level employees. This approach provides
consistency, control, and quick decision-making but can result in reduced
employee empowerment and slower response to local needs.
In contrast, decentralization disperses decision-making authority to lower-level
managers or teams. This promotes autonomy, flexibility, and quicker responses to
local conditions. However, it can lead to inconsistent practices and coordination
challenges across different units.
Ultimately, the choice between centralization and decentralization depends on
factors such as organizational size, complexity, industry dynamics, and strategic
objectives. Some organizations adopt a hybrid approach, balancing centralization
and decentralization to achieve optimal decision-making and coordination.

13. New Design Options in Organizational Structure