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Rack BB1 (Micro-Level Behavioral Theories): Theories of Motivation | Emotions in Organizations (BB1.E) | Self-Determination Theory | Expectancy Theory | Personality Theories | Attribution Theory | Social Cognitive Theory
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What is Organizational Behavior (OB) and Where Does the Behavior of the Individual Fit?
Organizational Behavior (OB) is a broad interdisciplinary field that explores how people interact within organizational settings. It examines the behavior of individuals and groups within organizational contexts and draws from multiple disciplines, including psychology, sociology, anthropology, economics, and management science, to understand how people think, feel, and act in workplace environments.
Because many of the classic texts we cover fall under OB’s broad umbrella, we saw fit to divide our episodes by levels of analysis. This rack contains resources devoted to understanding OB at the individual member (micro) level, while other racks covers the group and team (meso) level and organization-system (macro) level.
Understanding individual behavior is arguably most fundamental aspect of OB. This involves exploring factors such as personal motivations and attitudes, individual perception and decision-making processes, personality traits and their impact on workplace performance, and cognitive factors like emotional intelligence and its role in professional interactions.
The values and contributions of micro-level OB research are many. Studies have provided great insights into understanding human behavior and why people act they way they do in organizational settings. By understanding individual motivations and how they interact with group and organizational dynamics, it might be possible to motivate employees better, improve their productivity, and increase satisfaction. It can also help with better job design and understanding the impacts of organizational changes or leader actions.
Useful applications of OB at the micro level abound. Consider a hypothetical tech start-up that is experiencing rapid growth. OB principles might help leaders with designing the organization with clear, tailored divisions of work that balance creativity with efficiency as the start-up grows. OB can also help manage the psychological challenges of dealing with the rapid scaling, and eventually (hopefully) stabilization after the growth spurt.
Some of the practical questions that OB studies might help answer include the following: How do different personalities and traits influence interactions within the organization? To what extent do factors outside the workplace influence worker behavior? What motivates people outside of their salary?
What are Some OB Theories at Micro Level?
This is a short list. Several of these have already been covered in this program (Episodes are linked and also available in the resources below):
Social Exchange Theory. One of the earliest and most influential works on Social Exchange Theory (SET) can be traced back to George C. Homans, who laid the groundwork for the theory in his seminal work, Social Behavior as Exchange (Homans, 1958). Homans argued that social behavior is based on the exchange of rewards and costs, emphasizing that individuals seek to maximize rewards while minimizing costs in their interactions. His work introduced key concepts such as the “profit” of social exchanges, which refers to the balance of rewards and costs that individuals perceive in their relationships. This foundational perspective has influenced subsequent research on organizational behavior, particularly in understanding employee motivation and interpersonal dynamics within workplaces.
Peter M. Blau further expanded on Homans’ ideas in his book Exchange and Power in Social Life (Blau, 1986/2017). Blau introduced the distinction between economic and social exchanges, arguing that social exchanges are characterized by subjective, relationship-oriented interactions that involve socio-emotional benefits, mutual trust, and commitment. His work emphasized the importance of reciprocity in social exchanges, suggesting that individuals are motivated to maintain balanced relationships where the benefits received are commensurate with those given.
Leader-Member Exchange (LMX) theory was developed by Graen and Uhl-Bien as a significant application of Social Exchange Theory in organizational behavior (Graen & Uhl‐Bien, 1995). LMX theory posits that leaders develop unique relationships with each of their subordinates, characterized by varying levels of trust, respect, and obligation. This theory emphasizes the importance of high-quality exchanges between leaders and followers, which can lead to enhanced employee performance, job satisfaction, and organizational commitment. The LMX framework has been widely studied and has provided valuable insights into the dynamics of leadership and followership within organizations.
Theories of Motivation. Maslow’s (1943) theory of motivation proposed that human needs are organized in a somewhat hierarchical structure. The theory separate needs into various intensities from the physiological needs such as food and shelter, safety needs such as a stable environment, social needs like belonging and social interactions, esteem needs such as recognition, and full self-actualization such as finding meaning and growth. However, as we discussed in Episode 3, this theory does not include the pyramid! That was introduced by other authors and Maslow himself did not agree with it!
Frederick Herzberg (Herzberg, et al., 1959) discovered that workplace satisfaction is influenced by two distinct types of factors: motivational factors like achievement, recognition, the work itself, responsibility, advancement, and growth; and hygiene factors like policies and procedures, salaries, job security, and others. Motivational factors produced satisfaction and enabled work while hygiene factors reduced dissatisfaction and lifted barriers to the work. As we discussed in Episode 101, removing dissatisfiers doesn’t automatically create satisfaction. Organizations must actively implement motivational factors to truly engage employees.
Developed by psychologists Edward Deci and Richard Ryan, self-determination theory explores intrinsic motivation by highlighting three core psychological needs — autonomy or feeling in control of one’s actions, competence or experiencing effectiveness and mastery, and relatedness or feeling connected to others (Deci & Ryan, 2013/1985).
Meanwhile, Victor Vroom’s (1960) expectancy theory suggests that motivation is a function of three key perceptions: expectancy or belief that effort will lead to good performance, instrumentality or belief that performance will result in rewards, and valence or the value placed on the expected reward. So for example, an employee considering extra effort on a project might ask themselves questions like “can I actually do an excellent job?” (Expectancy), “will doing an excellent job lead to a promotion?” (Instrumentality), and “do I want that promotion?” (Valence).
Personality Theories and Assessments. These types of theories try to capture and explain individual differences that can contribute to innate behaviors that are either helpful or challenging in particular organization settings. There are many personality models and instruments available — we will only mention a couple. One is the Big Five Personality Traits of Openness to Experience, Conscientiousness, Extraversion, Agreeableness, and Neuroticism (McCrea & Costa, 2003). Each can be measured on a scale of “high” to “low” but these do not necessarily convey goodness or badness. For example, being low on Openness can be beneficial for individuals working in predictable and stable environments while high Neuroticism can indicate high drive, tolerance for risk, and self-awareness.
Another is Emotional Intelligence (EI) theory that refers to the ability to recognize, understand, and manage one’s own emotions and the emotions of others (Goleman, 1995). This concept has gained attention in organizational studies as leaders with high emotional intelligence are believed to be more effective in fostering positive workplace relationships and creating supportive work environments, while employees with high EI are presumed to be better equipped to navigate workplace challenges, resolve conflicts, and build strong relationships with colleagues.
Social Cognitive Theory. Albert Bandura’s (1986) social cognitive theory emphasizes learning through observation, self-efficacy and belief in one’s capabilities, and reciprocal determinism such as interaction between personal factors, behavior, and environment. For example, mentorship programs leverage social cognitive principles by allowing employees to learn through role models.
Contemporary Research Areas
Micro-level OB research is highly active and there are many practical applications and concerns, including some of the “hot topics” in Aisle C.
Digital Transformation, Technological Integration, and the Gig Economy. Also see Rack CD. This research area explores the profound impact of digital technologies on organizational life. How can organizations leverage technological advancements while maintaining human-centric workplace experiences? Scholars are particularly interested in understanding the complex interactions between human workers and increasingly sophisticated technological systems.
Some areas of interest include the psychological and social implications of remote and hybrid work models, how artificial intelligence transforms organizational processes and decision-making, the development of digital leadership competencies, and others. There are also the impacts of the gig economy such as considerations regarding technological platforms and workforce coordination, career development in fluid work environments, and emerging non-traditional workforce models (also see Rack CW on the meaning of work).
Employee Well-being and Mental Health Frameworks. Also see Rack CE. The well-being and mental health of employees has long been deemed to be important, but is a moving target. Our Episode 109 covered the evolution of the mental health professions and showed how personal problems and the expertise to treat them have co-evolved over time. Research in organizations has recently focused on how to sustain and improve mental health given the unique conditions of contemporary work environments, preventing burnout or other signs of dissatisfaction, enhancing work-life balance, and improve individual resilience against adversity.
Character and Ethical Behavior. Also see Racks CE and CW. Researchers are exploring the ethical dimensions of organizational behavior with increasing sophistication to include ethical decision-making processes, leadership integrity and trust mechanisms, and addressing antecedents to unethical behaviors such as committing fraud or petty criminal activities in the workplace. On the affirming side, studies have shown that leaders who exercise integrity, humility, and accountability are more likely to foster a positive organizational culture and inspire trust among their followers (Nurhaeni et al., 2022). For instance, the concept of “agile leadership” emphasizes the importance of personal values in shaping leadership styles that are responsive to the challenges of a volatile, uncertain, complex, and ambiguous (VUCA) environment (Nurhaeni et al., 2022).
Another area of inquiry involves the ethical climate within organizations and its impact on employee behavior, particularly whistle-blowing intentions. Research by Zhou et al. (2018) highlights the psychological mechanisms that link ethical climate to employees’ willingness to report unethical behavior. This study suggests that a positive ethical climate can empower employees to act in accordance with their moral values, thereby promoting transparency and accountability within the organization.
Neuroscience and Organizational Behavior. An interdisciplinary approach integrating neurological insights into workplace behaviors that provide enhanced understandings of all the above. What are the cognitive processes in organizational contexts and how do they drive worker behavior, conceptions of leadership and motivation, learning (and forgetting), and matters of character and ethics? Cognitive neuroscience is contributing to our understanding oghow individuals make decisions in organizational contexts. For example, Rilling and Sanfey (2011) discuss the neural systems involved in social decision-making, emphasizing the role of the prefrontal cortex in regulating emotions and making prudent choices.
There is also research pursuing physiological indicators of one’s perceptions and reactions to events in organizational settings. Balconi et al. (2018) explore the use of physiological measures during performance assessments to glean insights about how managers can design and conduct such assessments while taking their employee’s reactions into account. Meanwhile, oxytocin (a.k.a., the “trust hormone”) has been the subject of research exploring its impact on social interactions within organizations. Scholars are examining potential research protocols to learn the role oxytocin may play in collective bargaining, perhaps influencing negotiation behaviors and outcomes based on levels of trust among the parties (Tremblay et al., 2017).
Related TAOP Episodes, Events, and Notes
111: Visible & Invisible Work – Susan Leigh Star
101: The Motivation to Work — Frederick Herzberg
91: Constructive Conflict – Mary Parker Follett
89: Administrative Behavior in Public Sector — Herbert Kaufman
88: Social Defenses Against Anxiety — Isabel Menzies
66: Workplace Isolation – Forester
61: Power & Influence in Organizations — Dan Brass
57: Reward Systems – Steven Kerr
Reflections on the “Human Capital Hoax”
39: Carnegie Mellon Series #4 – Organizational Choice
38: Socialization and Occupational Communities – Van Maanen
35: The Managed Heart – Arlie Hochschild
Related Resource Pages
Rack BA — Classic Organization and Management Theory
Rack BB1 – Organizational Behavior (Micro-Individual)
Rack BB2 — Organizational Behavior (Meso-Groups and Teams)
Rack BB3 — Organizational Behavior (Macro-Org/System)
Rack BC — Contingency Theory
Rack BD — Organizational Design
Rack BG — Organizational Development and Change
Rack BH – Human Dimension – Culture, Climate, Identity
Rack BI — Institution Theory
Rack BL — Leadership Theories
Rack BM – Modern Management Theories
Rack BQ — Postmodern and Critical Theories
Rack BS — Sociology & Anthropology
References
Balconi, M., Venturella, I., Fronda, G., & Vanutelli, M. (2018). Who’s boss? Physiological measures during performance assessment. Managerial and Decision Economics, 40(2), 213-219. https://onlinelibrary.wiley.com/doi/10.1002/mde.2997
Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Prentice-Hall, Inc.
Blau, P. (2017). Exchange and power in social life. Routledge.
Deci, E. L., & Ryan, R. M. (2013). Intrinsic motivation and self-determination in human behavior. Springer Science & Business Media.
Goleman, D. (1995). Emotional intelligence. Bantam Books.
Graen, G. and Uhl‐Bien, M. (1995). Relationship-based approach to leadership: development of leader-member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain perspective. The Leadership Quarterly, 6(2), 219-247. https://linkinghub.elsevier.com/retrieve/pii/1048984395900365
Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work. New York: John Wiley.
Homans, G. C. (1958). Social behavior as exchange. American journal of sociology, 63(6), 597-606.
Maslow, A. (1943). A Theory of Human Motivation. Eastford, CT: Martino Fine.
McCrae, R. R., & Costa, P. T., Jr. (2003). Personality in adulthood: A five-factor theory perspective (2nd ed.). Guilford Press. https://doi.org/10.4324/9780203428412
Nurhaeni, I., Nurdin, A., Wiratama, P., & Kurniawan, Y. (2022). Gendered-perspective agile leadership in the VUCA era during the COVID-19 pandemic. Jurnal Ilmu Sosial Dan Ilmu Politik, 26(2), 119-136. https://jurnal.ugm.ac.id/jsp/article/view/70490
OpenAI. (2024). What are the major theoretical streams in organizational behavior; What are the top five foundational texts in organizational behavior theories in organization studies from before 1970; What are the major theoretical streams in organizational behavior at the micro level. ChatGPT (November 2022 version) [Large Language Model].
Rilling, J. & Sanfey, A. (2011). The neuroscience of social decision-making. Annual Review of Psychology, 62(1), 23-48. https://www.annualreviews.org/doi/10.1146/annurev.psych.121208.131647
Scite. (2024). What are the major theoretical streams in organizational behavior; What are the top five foundational texts in organizational behavior theories in organization studies from before 1970; What are the major theoretical streams in organizational behavior at the micro level; What are the foundational works related to social exchange theory; What are the major personality theories associated with organization studies; What are researchers presently studying regarding individual character and ethics within organization studies; What are neuroscience researchers studying regarding individual micro-level behaviors within organization settings. Scite (April 2024 version) [Large Language Model].
Tremblay, J., Rivard, S., & Gosselin, E. (2017). Oxytocin and collective bargaining: propositions for a new research protocol. American Journal of Industrial and Business Management, 7(7), 893-909. https://www.scirp.org/journal/paperinformation?paperid=77481
Zhou, L., Liu, Y., Chen, Z., & Zhao, S. (2018). Psychological mechanisms linking ethical climate to employee whistle-blowing intention. Journal of Managerial Psychology, 33(2), 196-213. https://www.emerald.com/insight/content/doi/10.1108/jmp-09-2017-0292/full/html
The inclusion of external links is for informational purposes only and does not necessarily constitute endorsement by TAOP or any of its members.
Jump to: Importance | Theories | Research Areas | TAOP Episodes | References
Rack BB1 (Micro-Level Behavioral Theories): Theories of Motivation | Emotions in Organizations (BB1.E) | Self-Determination Theory | Expectancy Theory | Personality Theories | Attribution Theory | Social Cognitive Theory
Aisle B (Major Theories): Classical Theories (BA) | Org. Behavior – Individual (BB1) | Org. Behavior – Groups & Teams (BB2) | Org. Behavior – Systems & Culture (BB3) | Contingency Theories (BC) | Org. Design (BD) | Org. Development & Change (BG) | Human Relations Theories (BH) | Institution Theories (BI) | Leadership Theories (BL) | Modern Management Perspectives (BM) | Postmodern & Critical Theories (BQ) | Sociology & Anthropology (BS)
Resources: Main Page | Research Methods (A) | Major Theories (B) | Issues and Contemporary Topics (C) | Professional Community (D)