In Herzberg's two-factor theory, salary, company policy and working conditions are:

Hygiene factors, whose absence causes dissatisfaction but whose presence does not motivate

Motivators that create job satisfaction

Existence needs in the ERG model

Instrumentalities in expectancy theory

Vroom's expectancy theory states that motivational force is the product of:

Valence, instrumentality and expectancy

Inputs, outcomes and the referent's ratio

Achievement, power and affiliation needs

On Blake and Mouton's Managerial Grid, the 9,9 style is called:

Task (authority-compliance) management

Fiedler's contingency model holds that a task-oriented (low LPC) leader is most effective when the situation is:

Either highly favourable or highly unfavourable

Always, regardless of the situation

Never — relationship-oriented leaders are always superior

Organisational Behaviour: Individual Behaviour, Motivation, Groups, Leadership and Transactional Analysis

Unit 2 opens with organisational behaviour, the most theory-dense sub-unit on the paper: personality, perception, values, attitudes, learning and motivation at the individual level; team building, group dynamics and leadership at the group level; and transactional analysis for the interpersonal level. Nearly every question is 'which theory, whose name, which stage'. This chapter is a set of tables in the order the syllabus lists the topics, so that the names, the components of each theory and the distinctions between neighbouring theories can be recalled as one block.

1. OB and individual behaviour: personality, perception, values, attitudes and learning

Organisational behaviour is the study of what people think, feel and do in and around organisations, at three levels — individual, group and organisation — drawing on psychology, social psychology, sociology and anthropology. Its significance is that it explains and predicts behaviour that classical management assumed away, and its theoretical frames are the cognitive (Tolman), behaviouristic (Pavlov, Skinner) and social cognitive (Bandura) approaches, and the models of Keith Davis — autocratic, custodial, supportive, collegial and system. Personality is the stable pattern of thinking, feeling and behaving that distinguishes a person; it is shaped by heredity and environment, and measured by the Big Five (openness, conscientiousness, extraversion, agreeableness, neuroticism — conscientiousness predicts job performance best), by the Myers-Briggs Type Indicator's sixteen types on four Jungian dichotomies, and by traits used in OB — locus of control (Rotter), Machiavellianism, self-esteem, self-monitoring, risk-taking, Type A and Type B (Friedman and Rosenman), and Holland's six-type person-job fit.

Perception, values, attitudes, learning: the theories asked
Topic	Core content	Names to pair
Perception	The process of selecting, organising and interpreting sensory input; factors in the perceiver, the target and the situation; shortcuts and errors — selective perception, halo effect, contrast effect, projection, stereotyping, first impression (primacy), recency, self-fulfilling prophecy (Pygmalion effect)	Kelley's attribution theory — distinctiveness, consensus, consistency decide internal versus external cause; fundamental attribution error (over-blaming the person) and self-serving bias (crediting self for success, situation for failure); Gestalt principles of organisation
Values	Basic convictions about what is right and desirable, with content and intensity attributes; relatively stable; formed early	Rokeach — terminal (end states: a comfortable life, wisdom) versus instrumental (means: honesty, ambition); Allport-Vernon-Lindzey six types — theoretical, economic, aesthetic, social, political, religious; Hofstede's cultural dimensions; generational cohorts
Attitudes	Evaluative statements about objects, people or events, with three components — cognitive (belief), affective (feeling), behavioural (intention), the ABC model; job attitudes: job satisfaction, job involvement, organisational commitment (Meyer and Allen — affective, continuance, normative), perceived organisational support, employee engagement	Festinger's cognitive dissonance — discomfort from inconsistent attitudes or behaviour, reduced by changing one of them; Fishbein and Ajzen's theory of planned behaviour; responses to dissatisfaction — exit, voice, loyalty, neglect
Learning	A relatively permanent change in behaviour from experience; classical conditioning (Pavlov — stimulus paired with response), operant conditioning (Skinner — behaviour shaped by consequences), social or observational learning (Bandura — attention, retention, reproduction, motivation), cognitive learning (Tolman)	Reinforcement — positive, negative (avoidance), punishment, extinction; schedules — continuous, fixed interval, variable interval, fixed ratio, variable ratio (variable ratio is the most resistant to extinction); shaping; organisational behaviour modification (Luthans)

2. Motivation: content, process and reinforcement theories

Motivation theories, grouped as the paper groups them
Theory	Author and year	Content	Distinguishing point
Need hierarchy	Maslow, 1943	Physiological, safety, social (belonging), esteem, self-actualisation; lower needs are prepotent and a satisfied need no longer motivates	Content theory; only self-actualisation is never fully satisfied; little empirical support for the strict order
ERG	Alderfer, 1969	Existence, relatedness, growth; several needs can operate at once	Adds the frustration-regression principle Maslow lacks
Two-factor (motivation-hygiene)	Herzberg, 1959	Hygiene factors (pay, policy, supervision, conditions, security) prevent dissatisfaction but do not motivate; motivators (achievement, recognition, the work itself, responsibility, advancement, growth) create satisfaction	Satisfaction and dissatisfaction are on separate continua; the source of job enrichment; the critical-incident method at Pittsburgh
Theory X and Theory Y	McGregor, 1960	X assumes people dislike work and must be coerced; Y assumes they seek responsibility and self-direction	Assumptions about people, not a theory of needs; Ouchi's Theory Z (1981) is the Japanese-style extension
Three needs (acquired needs)	McClelland, 1961	Need for achievement, power and affiliation, measured by the Thematic Apperception Test	High n-Ach prefers moderate risk and feedback; high n-Pow predicts managerial success (with low n-Aff); the basis of the Kakinada entrepreneurship experiment
Expectancy (VIE)	Vroom, 1964	Motivation = valence × instrumentality × expectancy: value of the reward, belief that performance brings it, belief that effort brings performance	Process theory; multiplicative, so a zero anywhere kills motivation; Porter and Lawler (1968) extended it — satisfaction follows performance
Equity	Adams, 1963	People compare their outcome/input ratio with a referent's; inequity motivates restoring balance — changing inputs or outcomes, distorting perceptions, changing the referent, leaving	The root of organisational justice — distributive, procedural, interactional
Goal-setting	Locke, 1968; Locke and Latham	Specific, difficult goals with feedback raise performance; commitment, self-efficacy and task complexity moderate	The theory behind MBO and SMART goals
Reinforcement	Skinner	Behaviour is a function of its consequences; ignores inner states	Not a theory of motivation in the cognitive sense, but it predicts behaviour well
Self-determination and job characteristics	Deci and Ryan; Hackman and Oldham, 1976	Intrinsic motivation from autonomy, competence, relatedness; the job characteristics model — skill variety, task identity, task significance, autonomy, feedback — gives the motivating potential score	Extrinsic rewards can crowd out intrinsic motivation; MPS = (variety + identity + significance)/3 × autonomy × feedback

⚠️ Content versus process, and where Herzberg puts pay

Content theories say WHAT motivates — Maslow, Alderfer, Herzberg, McClelland. Process theories say HOW — Vroom, Adams, Locke, Porter and Lawler. Reinforcement stands apart. The favourite trap: in Herzberg's scheme salary is a hygiene factor, so higher pay removes dissatisfaction but does not create satisfaction; and Maslow's esteem needs map to Herzberg's motivators while his physiological and safety needs map to hygiene factors. The second trap: Maslow's needs are five, Alderfer's three, McClelland's three, Herzberg's factors two — a question giving 'achievement, power, affiliation' wants McClelland, not Maslow.

3. Group behaviour: team building, group dynamics and leadership

A group is two or more interacting, interdependent people who come together to achieve objectives — formal (command, task) or informal (interest, friendship). Group dynamics covers the forces within it: roles (role identity, perception, expectation, conflict), norms (performance, appearance, social arrangement, allocation of resources — the Hawthorne bank-wiring room is the classic study of output norms), status, size (social loafing — Ringelmann's finding that individual effort falls as groups grow; five to seven for decisions), cohesiveness (raises productivity only when performance norms are high), and the group-decision phenomena of groupthink (Janis, 1972 — pressure for unanimity suppresses dissent) and groupshift or risky shift. Tuckman's stages of group development (1965) run forming, storming, norming, performing, and adjourning (added 1977); Gersick's punctuated equilibrium is the alternative for deadline-driven groups. A team differs from a group in positive synergy, mutual and individual accountability and complementary skills (Katzenbach and Smith); types are problem-solving, self-managed, cross-functional and virtual. Team building is the planned OD intervention that improves how a team works — goal setting, role clarification, interpersonal process, problem solving — and Belbin's nine team roles (plant, resource investigator, coordinator, shaper, monitor-evaluator, teamworker, implementer, completer-finisher, specialist) are the composition tool the paper names.

Leadership theories, in the order they developed
Family	Theory and author	What it says
Trait	Great-man theory; Stogdill's reviews (1948, 1974); the Big Five link — extraversion strongest	Leaders are born with traits — intelligence, dominance, self-confidence, energy, integrity; predicts emergence better than effectiveness
Behavioural	Iowa (Lewin, Lippitt and White — autocratic, democratic, laissez-faire); Ohio State (initiating structure, consideration); Michigan (Likert — job-centred, employee-centred; Systems 1 to 4); Blake and Mouton's Managerial Grid (1964)	Leaders are made by what they do; the Grid plots concern for production against concern for people — 1,1 impoverished, 9,1 task, 1,9 country club, 5,5 middle of the road, 9,9 team (the ideal)
Contingency	Fiedler (1967) — LPC scale; situational favourableness from leader-member relations, task structure, position power	Task-oriented (low LPC) leaders do best in very favourable or very unfavourable situations, relationship-oriented (high LPC) in moderate ones; style is fixed, so match the leader to the situation
Situational	Hersey and Blanchard — follower readiness (ability and willingness)	Telling, selling, participating, delegating as readiness rises from R1 to R4
Path-goal	House (1971)	Directive, supportive, participative, achievement-oriented styles chosen by subordinate and environmental contingencies; leaders clear the path to goals
Normative decision	Vroom and Yetton (1973), Vroom and Jago	A decision tree choosing from autocratic (AI, AII), consultative (CI, CII) and group (GII) styles
Continuum	Tannenbaum and Schmidt (1958)	Boss-centred to subordinate-centred: tells, sells, consults, joins, delegates
Exchange and relationship	Leader-member exchange (Graen — in-group and out-group); transactional versus transformational (Burns 1978, Bass 1985 — the four Is: idealised influence, inspirational motivation, intellectual stimulation, individualised consideration); charismatic (House, Conger and Kanungo); servant leadership (Greenleaf, 1970); authentic; level 5 (Collins)	Transactional leaders exchange rewards for performance (contingent reward, management by exception); transformational leaders raise followers' goals and self-interest to the collective; the full-range model puts laissez-faire at the passive end

🧠 Power bases, because leadership questions borrow them

French and Raven (1959) named five bases of power: legitimate (position), reward, coercive — the formal three — and expert and referent — the personal two, to which information power was added later. Referent power is the base of charismatic leadership; expert power is why staff advice is followed. Leadership differs from management (Kotter, Zaleznik): managers cope with complexity through planning and control, leaders cope with change through vision and alignment; leadership is a function of the leader, the followers and the situation.

4. Interpersonal behaviour and transactional analysis

Transactional analysis, developed by the psychiatrist Eric Berne in the late 1950s and popularised in Games People Play (1964) and Thomas Harris's I'm OK — You're OK (1969), is a theory of personality and communication used in OB to improve interpersonal behaviour. Its unit is the transaction — a stimulus from one person and the response of another — and its structure is the three ego states every person carries: the Parent (recorded rules and attitudes from authority figures — nurturing or critical), the Adult (rational, here-and-now data processing) and the Child (recorded feelings and impulses — natural or free, adapted, and the 'little professor'). Transactions are complementary when the response comes from the ego state addressed and the lines are parallel (Adult to Adult answered Adult to Adult), so communication can continue indefinitely; crossed when the response comes from an unexpected ego state (Adult asks, Child sulks) and communication breaks; and ulterior when a social-level message conceals a psychological-level one, which is the mechanism of games. Strokes are units of recognition, positive or negative, conditional or unconditional, and people will seek negative strokes rather than none; stroke economy is the set of rules restricting them. Life positions (Harris) are the four stances a person settles into — I'm OK, you're OK (healthy, the winner's position); I'm OK, you're not OK (projective, blaming); I'm not OK, you're OK (depressive, common); I'm not OK, you're not OK (futility). Scripts are life plans decided in childhood; games are repetitive ulterior transactions with a predictable payoff; and time structuring runs from withdrawal through rituals, pastimes, activities and games to intimacy. Applied to organisations, TA trains managers to respond from the Adult, to give positive strokes, to recognise crossed transactions in conflict, and to move subordinates from Child-Parent dependence to Adult-Adult exchange; its companion tools are the Johari window for self-disclosure and feedback and assertiveness training.

The three ego states
Ego state	Source	Typical words and behaviour	Sub-types
Parent	Taught concept of life — recordings of authority figures	'You should', 'always', 'never'; judging, protecting, controlling	Nurturing Parent, Critical (controlling) Parent
Adult	Thought concept — reality testing, probability estimating	'What', 'why', 'how', 'I think'; calm, factual, questioning	None — the integrated, problem-solving state
Child	Felt concept — recordings of early feelings	'I want', 'I can't', 'wow'; spontaneous, rebellious, compliant, creative	Natural (free) Child, Adapted Child, Little Professor

Key takeaways

The Big Five's conscientiousness predicts performance best; Kelley's attribution uses distinctiveness, consensus and consistency; the fundamental attribution error over-blames the person; Rokeach's values are terminal and instrumental; attitudes have cognitive, affective and behavioural parts; Festinger's dissonance is discomfort from inconsistency.
Pavlov is classical, Skinner operant, Bandura observational conditioning; the variable-ratio schedule resists extinction most.
Content theories (Maslow five, Alderfer three, Herzberg two factors, McClelland three needs) say what motivates; process theories (Vroom's V×I×E, Adams's equity, Locke's goals) say how; Herzberg's pay is hygiene, not a motivator.
Tuckman: forming, storming, norming, performing, adjourning; groupthink is Janis; social loafing is Ringelmann; Belbin has nine team roles; the Managerial Grid's ideal is 9,9; Fiedler matches a fixed style to the situation, Hersey-Blanchard adapts style to follower readiness; Bass's four Is define transformational leadership.
Berne's TA has three ego states — Parent, Adult, Child — and complementary, crossed and ulterior transactions; Harris's healthy life position is 'I'm OK, you're OK'; French and Raven's five power bases are legitimate, reward, coercive, expert and referent.

Practice questions (9)

Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.

Which of the Big Five personality dimensions is the most consistent predictor of job performance across occupations?
1. Conscientiousness
2. Extraversion
3. Openness to experience
4. Agreeableness
Show answer
Answer: A — Conscientiousness
Meta-analyses (Barrick and Mount) find conscientiousness — dependability, organisation, persistence — predicts performance in every job family. Extraversion predicts performance in sales and managerial roles and leadership emergence; openness predicts training success.
Attributing a colleague's failure to laziness while ignoring the impossible deadline they were given illustrates:
1. Fundamental attribution error
2. Self-serving bias
3. Halo effect
4. Contrast effect
Show answer
Answer: A — Fundamental attribution error
The fundamental attribution error under-estimates situational causes and over-estimates dispositional ones when judging others. Self-serving bias is about judging oneself; the halo effect generalises from one trait; the contrast effect judges against the person seen just before.
In Herzberg's two-factor theory, salary, company policy and working conditions are:
1. Hygiene factors, whose absence causes dissatisfaction but whose presence does not motivate
2. Motivators that create job satisfaction
3. Existence needs in the ERG model
4. Instrumentalities in expectancy theory
Show answer
Answer: A — Hygiene factors, whose absence causes dissatisfaction but whose presence does not motivate
Herzberg placed satisfaction and dissatisfaction on separate continua: hygiene factors relate to the job context and only prevent dissatisfaction; motivators — achievement, recognition, the work itself, responsibility, advancement — relate to job content and produce satisfaction.
Vroom's expectancy theory states that motivational force is the product of:
1. Valence, instrumentality and expectancy
2. Inputs, outcomes and the referent's ratio
3. Hygiene factors and motivators
4. Achievement, power and affiliation needs
Show answer
Answer: A — Valence, instrumentality and expectancy
M = V × I × E: how much the reward is valued, how far performance is believed to bring the reward, and how far effort is believed to bring performance. Because it multiplies, a zero in any term removes motivation. The other options describe Adams, Herzberg and McClelland.
Arrange Tuckman's stages of group development in order:
(A) Norming
(B) Forming
(C) Performing
(D) Storming
1. B, D, A, C
2. B, A, D, C
3. D, B, A, C
4. B, D, C, A
Show answer
Answer: A — B, D, A, C
Forming (orientation), storming (conflict over roles and control), norming (cohesion and standards), performing (task accomplishment), and adjourning for temporary groups. Storming comes before norming — conflict precedes the settlement of norms.
On Blake and Mouton's Managerial Grid, the 9,9 style is called:
1. Team management
2. Country club management
3. Task (authority-compliance) management
4. Impoverished management
Show answer
Answer: A — Team management
The first coordinate is concern for production, the second concern for people. 9,9 is high on both — team management, the ideal; 1,9 is country club, 9,1 task, 1,1 impoverished, 5,5 middle of the road.
Fiedler's contingency model holds that a task-oriented (low LPC) leader is most effective when the situation is:
1. Either highly favourable or highly unfavourable
2. Moderately favourable
3. Always, regardless of the situation
4. Never — relationship-oriented leaders are always superior
Show answer
Answer: A — Either highly favourable or highly unfavourable
Favourableness is built from leader-member relations, task structure and position power. Low-LPC leaders excel at the extremes, high-LPC (relationship-oriented) leaders in the moderate middle; since Fiedler treats style as fixed, the remedy is to change the situation or the leader.
Bass's four components of transformational leadership are idealised influence, inspirational motivation, intellectual stimulation and:
1. Individualised consideration
2. Contingent reward
3. Management by exception
4. Initiating structure
Show answer
Answer: A — Individualised consideration
The four Is of transformational leadership. Contingent reward and management by exception are the transactional components of the full-range model; initiating structure is an Ohio State behavioural dimension.
In transactional analysis, a transaction in which the response comes from an ego state other than the one addressed, so that communication breaks down, is called:
1. Crossed transaction
2. Complementary transaction
3. Ulterior transaction
4. Parallel transaction
Show answer
Answer: A — Crossed transaction
Berne's crossed transaction — an Adult question met by a Child or Parent response — is the source of most interpersonal conflict. Complementary (parallel) transactions can continue indefinitely; ulterior transactions carry a hidden psychological message and underlie games.