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62, , I., , ss, , |, Organisational Behaviour (M.Com. Part-II ; SEM, , FACTORS AFFECTING —, INDIVIDUAL BEHAVIOUR, , , , Individuals form an integral part of an organisation. The, behaviour of individuals are affected by many factors as showy, , in the following chart: , , , , , , , , , , , , , , , , , , , , , INDIVIDUAL BEHAVIOUR, Environmental Personal Organisation, Factors Factors Factors, , , , , , , , , , , , , , ENVIRONMENTAL FACTORS, , Environmental factors are those external variables, such as economic,, socio-cultural and political factors, that influence individual, behaviour. These environmental factors are explained as follows:, , 1., , Economic Factors : Individual behaviour is influenced by economic environment. Economic environment is generally, related to those external forces, which have direct economic, effect upon organisations, especially employees., , These external economic forces are :, , i), , ii), , Employment opportunities : When the employment, opportunities in the country is less, then, the individuals, in the organisation get motivated by job security, The, , work with more commitment and dedication ii ae, organisation., , Wage rates : Salaries or wages is one of thea, , that affects individual beh toler, Salaries ete factor, fair, and must be paid on time. While fixing salaries ane, organisation must take into consideration a nt es, the, factors such as : ™ber of, , e Cost of living, , Scanned with CamScanner

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Foundation of Individual Behaviour 63, e Company's ability to pay, e Conditions prevailing in the market, e Capability of the employee, etc., , iii) Economic conditions : Economic conditions in.the country, also influences individual behaviour in the organisation., For instance, if a country is faced with the problem of, recession, some employees may experience lay of f., Employees who experience layoffs frequently are, motivated by job security than any other motivational, factors. On the other hand, if a country experiences boom,, employees may be recalled, and they may be provided with, better salaries and incentives., , iv) Technological change : Automation and modernisation, have resulted in computerisation and other technological, changes in the organisation. The manpower in the, organisation have been replaced by computers and other, such machines. Hence, employees need proper training to, cope with these technological changes., , 2. Socio-cultural Factors : The socio-cultural environment is made, and other forces that affect society. The socio, up of institutions, ndividual behaviour are :, , cultural factors that affect i, , an individual's ideas as to what is, , i) Values : Values carry, play an important role in, , right, good, or desirable. Values, - influencing individual behaviour by:, , e@ Developing employee attitudes, e Creating employee perceptions, , e Motivating employees, , ii) Manners and Customs : It is challenging for managers to, monitor changes occuring in manners and customs., , Understanding manners and customs is especially, important in negotiations, because interpretations base, a totally, , on one's own frame of reference may lead to., incorrect conclusion., , Scanned with CamScanner

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64, , er, , Organisational Behaviour (M.Com. Part-II : SEM-1, el) fo, , iii) Religion : Religion is closely associated with the, , agencies, and pressure g, , development of cultural values and affects individua|, , behaviour. Individuals belonging to same religion afd, locality may form groups in the organisation. Such, groupism may result in biasness and favouritism in the, organisation. Hence, formation of such groups may prove, to be unhealthy for organisations., , iv) Education : Education plays a major role in determining, individual behaviour. The qualification of an individual 4., , helps to determine factors, such as :, , e Jobtitle, e Salary expectations, e Training required, , e Promotion opportunities, etc., , Political Factors : Political environment is acomprehensive term, government, , and includes political system, political parties,, roups that influence and control, , individuals and organisations in a society., , i) Political systems: Acountry can have either Parliamentaty, , ii), , (open) form of government or Absolutist (closed) form of, government., , Parliamentary governments consult with citizens, from time to time for knowing their opinions and, preferences., , e Absolutist system dictates government policy, without considering citizen needs and opinions., , Economic systems : Govern ment may have eithet, controlled economic system or free economic system. In, case of controlled economic system, there are fewel, educational and career opportunities as compared to free, economic system. This affects the individual employ", needs. Hence, in case of controlled systems, individual ma), not be motivated to fulfil his career aspirations., , Scanned with CamScanner ‘

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foundation of Individual Ehavieur os, , iii) Political stability : A stable, progressive and healthy, political environment is necessary as tt affects individual, behaviour, The stability of government attracts foreign, investors and hence increases the employment, opportunities for individuals in our country The instability, of government affects level of employment in a country, and the individuals may have to take up labour-intensive, , jobs, , 4. Regulatory or Legal Environment: The regulatory environment, means those laws, rules, regulations and procedural formalities, planning ane, , trol, iro, , , , prescribed by the government te con, functioning of organisations There are s«, relating la employer-empley ce relahons, behaviour in organisations, Sore of the, , tal laws of acts, , , , cts individual, , , , important Laws are as, follaws |, ij) The Factories Act, 1948, , ii) The Payment of Wages Act, 1963, , ii) The Minimum Wages Act, 1945, , iv) The Industrial Disputes Act 1947, v) The Payment of Bonus Act, 1965., , vi) The Trade Unions Act, 1926., , vii) The Workmen's Compensation Act, 1923., , viii) The Employees’ State Insurance Act, 1948., Il, PERSONAL FACTORS, , such as age, sex, education,, , Personal characteristics of an individual, : 5, dividual behaviour in, , etc. are important in understanding in, organisations., , ni variable that affects individual, es, performance and productivity, Old age is associated with poor, es of absenteeism. Younger, , 1. Age: Age is an importa, performance. As age advance, of individual may decline., health and so there are high chance, , Scanned with CamScanner

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SF, , i, , Organisational Behaviour (M.Com. Part-II : SEM. th, , employees can adapt and cope better with changes jy), organisation as compared to older employees. 3, , Sex: Research has shown that there is no significant differences, , in organisational skills and abilities between males and females, However, women employees are less encouraged and less, appreciated for their performance. There may be high rate of ‘, absenteeism among women as they have to shoulder family,, responsibilities along with their job. Women may take career, breaks to bring up their children. |, , 3, Education : Education affects individual behaviour. Higher), al expectations in terms, , level of education increases individu, rnative sources of, , of increase in income levels and greater alte, occupational choice. Individuals may seek specialised education,, in disciplines such as engineering, medicine, law, accountancy,, etc. |, an individual's capacity to perform), , 4, Abilities: Abilities refer to, ividual's ability can be identified, , various tasks on job. An ind, by conducting employment tests, such as:, e Intelligence Test, e Projection Test, e General Knowledge Test, etc., Other personal factors that affect individual behaviour are :, e Marital status, e Number of dependants, e Creativity, etc., Ill. ORGANISATIONAL FACTORS, , Individual behaviour can be influenced by organisational factor,, , such as:, , 1, Physical Facilities : Individual behaviour and performance *, affected by physical facilities in the organisation, such as , Scanned with CamScanner