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Organisational
Behaviour
By: Bhavna KumarAssistant Professor
Indira institute of management, Pune
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Organisational Behaviour is a field of studythat investigates the impact that individuals,groups, and structure have on behaviour
within organisation for the purpose ofapplying such knowledge towards improvingan organisations effectiveness.
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OB is concerned with the study of whatpeople do in an organisation and how thebehaviour affects the performance of the
organisation.
It is concerned with employment relatedsituations, and emphasizes behaviour asrelated to concerns such as jobs, work,absenteeism, employee turnover,productivity, performance and management.
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OB refers to the behaviour of individuals andgroups within organisations and interactionbetween organisational members and their
external environment.
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Discuss Diagram
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Individual
Differences
WholePerson
CausedBehaviour
HumanDignity
OB
SocialSystems
Mutuality ofInterests
HolisticConcept
Foundations of OB
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Concepts concerned with people
Individual differences
Despite having much in common among mankindevery person in the world is also individuallydifferent.
From birth itself every individual is different and theexperiences in life makes them even more different.
It is the individual that which causes OB to begin itsdealing with individual.
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Concepts concerned with people
Whole Person
When organisations hires an individual it is nothis skills alone that is hired, it also includes hissocial background, likes and dislikes, pride andprejudices, his ego etc.
Family life of an individual cannot be separatedfrom his work life.
Organisation while treating an individual as awhole individual must strive to developemployees as a better person in terms of growthand fulfillment.
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Concepts concerned with people
Caused Behaviour
An individual behaviour is caused and notrandom. At certain times the individual believes
that his behaviour is in his interest.
Organisation need to realise this basic principleand tackle the issues from its root.
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Concepts concerned with people
Human Dignity
This is more a philosophical concept rather thanscientific conclusion.
It confirms that people are to be from other
factors as they are of higher order of universe.
It recognises that people want to be treated withdignity and respect and not as an economic tool.
Ethical values should prevail while dealing withpeople.
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Concepts concerned with organisations
Organisations are social system
Social sciences expresses that organisations aresocial system and consequently organisations aregoverned by social and psychological laws.
Formal and informal both types of socialsystem exists in an organisation.
It implies that organisation is dynamic and allparts of the organisations are interdependent aswell as are subject to influence by each other.
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Concepts concerned with organisations
Mutuality of interests among individuals
The concept is represented by organisation needspeople and people also need organisations.
People see organisation as a means to help themreach their goals, organisations on the other handneed people to attain their objectives.
Mutual interest provides a superordinate goal thatunites the variety of needs that people bring toorganisation.
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Concepts concerned with organisations
Holistic Concept
When all the six concepts are placed together,there emerges a holistic concept.
This concepts interprets people-organisationrelationship in terms of a whole person, wholegroup, whole organisation and the whole system.
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Study of OB is beneficial to all those who work inan organisation.
OB provides a roadmap to the life of people in the
organisations.
It enable the people to know the world where theylive in that is - the organisation.
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Since OB provides a roadmap to lives of people inorganisations, people join in an organisation withaspirations and dreams and also along with their fearand frustrations.
Different people in organisation behave in a differentway, even one may get caught in anxiety in case oneneeds to respond to the changes in the organisation.
Therefore there arises the need to map outorganisational events so that one can function in moresecure and comfortable environment.
Importance of OB Firstly
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Importance of OB Secondly
The field of OB uses scientific research and therefore ithelps in predicting and understanding organisationallife.
This knowledge is not absolute, and the field of OB isnot a pure science.
Therefore all decisions that are made in the
organisations are determined by complex combinationof factors.
However, OB helps to make sense of workplace andpredict to some extent what people would do undervarious circumstances
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Importance of OB Thirdly
OB helps us influence organisational events.
People work in various specialised area and theyneed to understand communication, conflict
handling, managing stresses, make better decisions,ensuring commitment, help employee workeffectively and efficiently.
Theories and concepts of OB will help them toinfluence such organisational events.
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Importance of OB Fourthly
OB helps people to understand self and others better.
This helps improve interpersonal relations
considerably.
The study of areas like perception, communication,leadership, attitude, etc. will change the style of
functioning of an individual.
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FifthlyImportance of OB
OB helps in motivating subordinates get things donethrough delegation.
Study of motivational theories make managersunderstand the basis of motivation and what oneshould to do motivate others
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Importance of OB Sixthly
OB helps in maintaining cordial industrial relations.
Declining productivity, slow working by an employeemay be because of indifferent attitude of the manger
towards the employee.
Study of OB helps in understanding the requiredattitude that a manager must have to maintain cordialindustrial relations.
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Importance of OB Seventhly
OB is also useful in the field of marketing.
Success or failure of an enterprise will depend uponawareness of the nature of individual and social
processes.
This will also allow to meet the challenges ofdynamics of flow of goods and services fromproducer to consumers.
OB helps in research of consumer choice behaviour,consumer influence and channels involved.
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EighthlyImportance of OB
Another important reason is that when one isinterested in pursuing a career in management onewants to learn how to predict behaviour of peopleand group and apply it in some meaningful way to
make organisation more effective.
A successful manager should have good peopleskills which include the ability to understand
employees and thereby applying this knowledgemake the employees more effective and efficient.
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Importance of OB Ninthly
In order to maintain the growth in economy andsustain the trend of this growth, there is need foreffective management in all sector of economy.
Effective management does not mean competentutilisation of technical or financial resources . Ratherit implies efficient people management where OB isof utmost importance.
OB is a discipline which enables a manger tomotivate his subordinate towards higherproductivity and better results
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ORGANISATIONAL BEHAVIOUR
The Emerging Challenges
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OB Challenges
EthicalBehaviour
TechnologyTransformation
ManagingDiversity
ChangingDemographic of
Workforce
ChangedEmployee
expectations
Globalisation
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Individual Behaviour has its base on variousfactors and they are:
Foundations of Individual behaviour
Personal Factors
Environmental factors
Psychological
Organisational Systems and Resources
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IndividualBehaviour
Physical facilities
Organisation structure& design
Leadership
Reward system
Work related
behaviour
Personality
Perception
Attitudes
Values
Learning
Economic
Social norms &
cultural values
Political
Age
SexEducation
Abilities
Marital status
No. of
dependents
Creativity
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Models oforganisational
behaviour
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1. Autocratic Model2. The custodial model3. The supportive model4. The collegial model5. The SOBC (Stimulus, organism,
behaviour, consequences) model
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The model is based on the assumption that authorityis central to results. People must accept the authorityof their superiors and obey their instructions.Obedience is the main employee orientation.Obedience on the part of subordinates can be forrespect for the knowledge and the authority of thesuperiors or fear of punishment. Job security, basicneeds of a person, survival and growth makes the
subordinates to obey.
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This assumes that the organisational behaviordepends upon the economic resources. Employeework for money and desires job security. While moneyis the main managerial orientation, job security is themain employee orientation. For the basic need of jobsecurity employee offer a passive co-operation to thesuperiors. The management knows better welfare of
the people & takes the role of custodian and guardianof the people and their wealth.
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The model assumes that management is leadership.The management plays the role of a supportiveleadership. The employees are performance oriented
& need support for their initiative and drive forperformance. This encourages participation by thesubordinates. The basic need of the employee is theself esteem and recognition. The employees need
support, status and recognition for their performance.
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This model is based on the assumption that generallythe employees are self disciplined and they exhibit aresponsible behaviour. The main need of the employee
is self-actualisaton. If this need is satisfied, they showenthusiastic performance. Therefore they must beencouraged for the participation in decision making.Team building on the part of management is must asthe team work is main managerial orientation.
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This model is based on the assumption that every behaviouris caused. What we see are the consequences of the
behaviour shown by organism due to stimulus. This model
can be diagrammatically shown as follows:
Stimulus > Organism > Behaviour > Consequences(cause) (individual) (Actions) (Results)
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The Stimulus is the cause that may be overt or covert,physical, social, psychological, technological,environmental etc.The Organism can be individual or a group. They have
cognitive mediators with physiological existence.The Consequences are expressed as the results thatmay be overt or covert. Positive or negative and canhave effects on environmental dynamics andapplications.
SOBC model is based on the very practical philosophyof human behaviour that: every behaviour is caused &follows the Cause-Effect relationship.
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PERSONALITY
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Definitions
Personality is the dynamic organisation within anindividual of those psychological systems thatdetermine his unique adjustments to hisenvironment.
- Gordon Allport
Personality is the sum total ways in which anindividual reacts to and interacts with others.
- Stephen Robins
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PERSONALITY DETERMINANTS
Individual Personality is the result of
heredity and environment and the thirdfactor is recognised to be situation.
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HEREDITY
Heredity refers to those factors that were determined atconception. Physical stature, facial attractiveness,temperament, muscle composition and reflexes, energylevel, and biological rhythms are characteristics that are
generally considered to be either completely orsubstantially who the parents are; that is, by their
biological, physiological, and inherent makeup.
The heredity approach argues that the ultimateexplanation of an individuals personality is themolecular structure of the genes.
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ENVIRONMENT
Environment factor like culture in whichone is raised, early conditioning; norms
among family, friends, social group andother influences that one experiences, exertpressure on personality of an individual.
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SITUTATION
Situation influences the effect of heredityand environment on personality. Aindividuals personality, although
generally stable and consistent, doeschange in different situations. Thedifferent demands of different situations
call for different aspects ones personality.
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Locus of control
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LOCUS OF CONTROL
Locus of control is the degree to whichpeople believe they are masters of their
own fateSome people believe that they aremasters of their own fate. Other people
see themselves as pawns of fate, believingthat what happens to them in their lives isdue to luck or chance.
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INTERNALS
Individual who believes that theycontrol what happens to them.
EXTERNALSIndividuals who believe that whathappens to them is controlled by outside
forces such as luck or chance.
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TYPE A AND TYPE B
PERSONALITY
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A person with a Type A personality isaggressively involved in chronic,incessant struggle to achieve more and
more in less and less time, and ifrequired to do so, against the opposingefforts of other things or other persons.
Continous
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Type As
1.Are always moving, walking, and eatingrapidly2.Feels impatient with the rate at which most
event take place3.Strive to think or to do two or more things atonce
4.Cannot cope with leisure time5.Are obsessed with numbers, measuring theirsuccess
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TYPE B PERSONALITY
Type B is exactly opposite to type A arerarely harried by the desire to obtain a
wildly increasing number of things orparticipate in an endless growing seriesof events in an ever decreasing amountof time.
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Type Bs
1.Never suffer from a sense of timeurgency with the accompanying
impatience2.Feel no need to display or discuss theirachievements
3.Play for fun and relaxation and not
exhibit superiority4.Can relax without guilt
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Personality are the enduring characteristicsthat describe an individual behavior.A study identified 17,953 individual traits.Another researcher isolated 172 traits andreduced set of traits that would identifyunderlying patterns and thereby 16 personalityfactors (called the source or primary traits) wereidentifiedThese 16 traits are to be found generally steady
and constant source of behavior.
Personality traits
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y
Sixteen Primary Traits
1 Reserved Vs Outgoing
2 Less intelligent Vs More intelligent3 Affected by feelings Vs Emotionally stable
4 Submissive Vs Dominant
5 Serious Vs Happy-go-lucky
6 Expedient Vs Conscientious
7 Timid Vs Venturesome8 Tough minded Vs Sensitive
9 Trusting Vs Suspicious
10 Practical Vs Imaginative
11 Forthright Vs Shrewd
12 Self-assured Vs Apprehensive13 Conservative Vs Experimenting
14 Group dependent Vs Self-sufficient
15 Uncontrolled Vs Controlled
16 Relaxed Vs Tensed
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BIG Five personality model
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Big Five Personality Dimensions
Extroversion: Outgoing, talkative, sociable,assertiveAgreeableness: Trusting, good natured,
cooperative, softhearted.Conscientiousness: Dependable, responsible,achievement oriented, persistent.Emotional stability: Relaxed, secure, unworried.Openness to experience: Sensitive, intellectual,imaginative, curious, broadminded.
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MBTI
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Its a 100 question personality test that asks
people how they usually feel or act inparticular situations.
Extraverted Vs IntrovertedSensing Vs. IntuitiveThinking Vs. feeling
Judging Vs. Perceiving
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PERCEPTION
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Perception is a process by whichindividuals organise and interpret theirsensory impressions in order to givemeaning to their environment.
- Stephen Robins
Factors in the Perceiver
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Factors in the situation
TimeWork SettingSocial Setting
Factors in the PerceiverAttitudesMotives
InterestsExperienceExpectations
Factors in the targetNoveltyMotionSoundsSizeBackgroundProximitySimilarity
Wh t d ?
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What do you see?
What do you see?
What do you see?
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There's a face... and the word liar
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Is the left center circle bigger?
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No, they're both the same size
It' i l i ht?
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It's a spiral, right?
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No, these are a bunch of
independent circles
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You can see a white vase as figure against a
black background, or two black faces in
profile on a white background
What do you
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What do you
see?
Now what do you
see?
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Count the black dots!
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0 (ZERO)
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The individual registers the stimulus and itsgravity
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The individual tries to understand thereal meaning of the situation.
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The individual evaluates the strengthand weakness and gives a quickfeedback to the sensory motor.
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The individual gives the response interms of reaction that can be positive,negative or neutral, depending uponthe mutual interaction between the
stimulus and the individual.
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APPLICATION OF PERCEPTION
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The theory is proposed to develop explanations ofthe ways in which we judge people differently,depending on what meaning we attribute to agiven behaviour. The theory suggests that when an
individual observes another individualsbehaviour and they observer attempts todetermine whether the behaviour is causedinternally or externally.The determination, however depends upon three
factors1. Distinctiveness2. Consensus3. Consistency
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1.Selective perception
2.Halo/ horns effect3.Contrast effect4.Stereotyping (profiling)
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ATTITUDES
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Attitudes Evaluative statements orjudgments concerning objects, people orevents.
Attitude may be favourable or unfavourable concerning objects or events. Attitudesare not the same as values, but the two areinterrelated.
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Attitude has three components and they are
1.Cognitive Component
2.Affective Component
3.Behavioural Component
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It is the opinion or belief segment of an attitude
It is the emotional or feeling segment of anAttitude.
An intention to behave in a certain way towardsomeone or something.
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There may be thousands of attitudes in aperson, OB focuses attention on a verylimited number of work related attitudes.These work related attitudes are positive or
negative and shows how employee feel abouttheir job. Most of the research in OB has beenconcerned with three attitudes namely:
1. Job Satisfaction
2. Job Involvement3. Organisational Commitment
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The term job satisfaction refers to anindividuals general attitude toward his orher job. An individual with high level of
job satisfaction holds positive attitudes
about the job, while a dissatisfiedindividual may hold negative attitudesabout the job.
Low job satisfaction can result in highattrition rate, absenteeism, and poormental health.
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Job involvement measures the degreeto which a person identifiespsychologically with his or her job andconsiders his or her perceivedperformance level important to selfworth.
High level of job involvement reducesattrition and absenteeism.
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Organisation commitment is defined as
degree to which an employee identifies witha particular organisation and its objectivesand wishes to maintain membership in theorganisation.
An employee may be dissatisfied with his orher present job and consider it a temporary
condition, yet not be dissatisfied with theorganisation as a whole. But whendissatisfaction spreads to the organisationitself, individuals are more likely to resign.
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The job satisfaction has an effect onthe performance of an individualhowever in the organisation it tendsto center on its effect onproductivity, absenteeism and
turnover.
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Happy workers are productive workers is a
myth, the concept productive workers are likelyto be happy workers may hold good.
There is a negative relationship betweensatisfaction and absenteeism. Absenteeismincreases with decrease in job satisfaction
Satisfaction is also negatively related to turnover, factors like alternative job opportunities,length of tenure, labour market condition willalso effect the turnover.
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Employee dissatisfaction can be expressed invarious ways, however the following fourresponses shall indicate different responses toemployee dissatisfaction.
: Dissatisfaction expressed throughbehaviour directed toward leaving theorganisation.
: Dissatisfaction expressed throughactive and constructive attempts to improveconditions, may include union activity.
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: Passively but optimistically waiting forthe condition to improve. It is trustingorganisation and management to do the rightthing.
: Dissatisfaction expressed throughallowing condition to worsen, it includes chronicabsenteeism, reduced effort and increased errorrate.
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Satisfied employees increase customersatisfaction and loyalty. Satisfied employee aremore likely friendly and responsive whichcustomers appreciate. Satisfied employees areless prone to turnover, customers are more likelyto encounter familiar faces and receiveexperienced service.
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Basic convictions that a specific mode ofconduct or end state of existence is personally orsocially preferable to an opposite or conversemode of conduct or end state of existence.
A hierarchy based on ranking ofan individuals values in terms of their intensity.
TYPES OF VALUES
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TYPES OF VALUES
Value typologies can be developed in twoapproaches as per survey conducted byMilton Rokeach, the survey is popularlyknown as Rokeach Value Survey (RVS). RVSconsists of two sets of values
Terminal values and
Instrumental values
TYPES OF VALUES
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Terminal values Desirable end-states of
existence; the goals that a person would liketo achieve during his or her lifetime.
Instrumental values Preferable modes ofbehaviour or means of achieving onesterminal values.
Terminal Values Instrumental Values
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A comfortable life (a prosperous life)
An exciting life ( a stimulating, active
life)A sense of accomplishment ( lastingcontribution)
A world of peace ( free of war andconflict)
A world of beauty (beauty of natureand the arts)
Equality (brotherhood, equalopportunity for all)
Family security (taking care of loved
ones)
Freedom (independence, free choice)
Happiness (contentedness)
Ambitious (hardworking, aspiring)
Broad minded (open minded)
Capable (competent)Cheerful (lighthearted, joyful)
Clean (neat, tidy)
Courageous (standing up for yourbeliefs)
Forgiving (willing to pardon others)
Helpful (working for the welfare ofothers)
Honest (sincere, truthful)
Imaginative (daring, creative)Independent (self-reliant, self-sufficient)
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Inner harmony (freedom frominner conflict)
Mature love (sexual andspiritual intimacy)
National security (protectionfrom attack)
Pleasure (an enjoyable,
leisurely life)Salvation (saved, eternal life)
Self respect (self-esteem)
Social recognition (respect,admiration)
True friendship (closecompanionship)
Wisdom (a matureunderstanding of life)
Intellectual (intelligent,reflective)
Logical (consistent,rational)
Loving (affectionate,tender)
Obedient (dutiful,
respectful)Polite (courteous, well-mannered)
Responsible (dependable,reliable)
Self-controlled (restrained,self-discipline)
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THANK YOU