Organizational Behavior and Leadership
What the exam tests
Organizational Behavior and Leadership tests how individuals and teams behave and how leaders shape performance. Expect motivation, group dynamics, power, culture, conflict, decision biases, and change management.
Core rules
- Expectancy theory: motivation = expectancy x instrumentality x valence. If any factor is zero, motivation is zero.
- Herzberg separates hygiene factors, which prevent dissatisfaction, from motivators, which create satisfaction.
- Teams progress through forming, storming, norming, performing, and adjourning; conflict can be healthy if task-focused.
- Power comes from legitimate, reward, coercive, expert, and referent bases. Referent and expert power often support commitment.
- Culture is reinforced by what leaders measure, reward, and tolerate.
Worked example
An employee believes extra effort will raise output (expectancy 0.8), that high output will be rewarded (instrumentality 0.5), and that the reward is attractive (valence 0.7). Motivation score = 0.8 x 0.5 x 0.7 = 0.28. Raising expectancy through training alone has limited effect if the reward link is weak. A manager should also clarify performance-reward links and confirm the reward matters to the employee.
Traps
Do not assume pay is the only motivator. Do not confuse leadership with formal authority. Do not treat all conflict as dysfunction. Do not ignore situation and follower readiness when judging a leadership style.