Individual and group behaviour in business organisations: formula sheet

Key formulas

Trait approach

Personality = score on each of several dimensions (a continuum)

Example: the Big Five. Use when the question describes degrees of a characteristic.

Type approach

Personality = membership of one category out of a small set

Example: Jung and Myers-Briggs types. Use when people are placed in distinct groups.

Big Five traits

Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism

Memory aid: OCEAN.

Perception errors

Halo effect, horns effect, stereotyping, selective perception

Know a one-line definition of each.

Components of an attitude

Belief (cognitive) + feeling (affective) + behaviour intention (behavioural)

Attitudes influence behaviour but do not always determine it.

Maslow's hierarchy (low to high)

Physiological → Safety → Social → Esteem → Self-actualisation

Lower needs must be broadly satisfied before higher needs drive behaviour. A satisfied need no longer motivates.

Herzberg's two factors

Hygiene factors (prevent dissatisfaction) + Motivators (create satisfaction)

Removing dissatisfaction is not the same as creating motivation. Hygiene: pay, conditions, policy, supervision. Motivators: achievement, recognition, work itself, responsibility.

McClelland's three needs

Achievement, Power, Affiliation

Needs are learned, not inborn. Match the person's dominant need to the job and reward.

Vroom's expectancy theory

Motivation = Expectancy × Instrumentality × Valence

It is multiplicative. If any one element is zero, motivation is zero.

Adams' equity theory

Own outcomes ÷ own inputs compared with Others' outcomes ÷ others' inputs

Perceived inequity, not absolute pay, drives the response. Over-reward can also feel unfair.

Group versus team

Group = people who interact and see themselves as a unit; Team = group + shared goal + complementary skills

Every team is a group, but not every group is a team.

Tuckman's stages

Forming → Storming → Norming → Performing (→ Adjourning)

Adjourning was added by Tuckman later. Learn the order exactly.

Formal versus informal groups

Formal = created by the organisation for a purpose; Informal = created by members through social needs

Informal groups can support or work against organisational goals.

Belbin's nine team roles

Action: Shaper, Implementer, Completer Finisher | People: Co-ordinator, Teamworker, Resource Investigator | Thought: Plant, Monitor Evaluator, Specialist

Learn the three groupings first. They help you recall each role and spot what a team lacks.

Handy's group effectiveness

Givens (group, task, environment) + Intervening factors (leadership, motivation, processes) → Outcomes (productivity, satisfaction)

Use this structure to explain why a team is or is not effective.

Balance rule

Effective team = all key roles covered, no role heavily over-represented

One person may play several roles. Belbin does not require nine members.

Groupthink symptoms

Overconfidence + pressure to conform + self-censorship + illusion of unanimity

Use these as a checklist when a scenario shows a group agreeing too quickly.

Cohesion and performance

High cohesion + supportive norms = higher performance; high cohesion + opposing norms = lower performance

Cohesion alone does not guarantee good results. It depends on the norms.

Formal vs informal group

Formal = created by the organisation for a task; Informal = formed by members for social needs

Formal groups have set goals and structure. Informal groups meet social needs and have their own norms.

Conflict effect

Functional = improves decisions or innovation; Dysfunctional = harms performance or relationships

Always judge conflict by its effect, not just its existence.

Ways to reduce groupthink

Devil's advocate + outside experts + open leadership + subgroups + anonymous input

Leaders should avoid stating their preference first.

Quick revision

• Personality theories describe stable differences between people; behaviour also depends on the situation.
• Motivation theories split into content theories (what motivates) and process theories (how motivation works).
• Match the thinker to the idea: do not rely on the name alone, learn the core claim.
• Hierarchy of needs ranks needs from basic to higher, and a satisfied need stops motivating.
• Hygiene factors prevent dissatisfaction; motivators create satisfaction.
• Tuckman's stages run in order: forming, storming, norming, performing, with adjourning added later.
• Belbin's team roles show that an effective team needs a balance of roles, not one type of person.
• A group is not the same as a team: a team has shared goals and complementary skills.
• Conflict can be harmful or useful, depending on how it is managed.
• Groupthink happens when pressure for agreement overrides realistic appraisal of options.
• Read the question for the exact number of options to select in multiple response items.
• Eliminate options that describe a different theory before choosing.

Common mistakes

• Mixing up trait and type approaches. Fix: Remember traits sit on a scale and types are boxes. Ask whether the person has a degree or a label.
• Confusing the halo effect with stereotyping. Fix: Halo comes from one trait of the individual. Stereotyping comes from the group the person belongs to.
• Treating pay as a Herzberg motivator. Fix: In Herzberg, pay is a hygiene factor. It prevents dissatisfaction but does not create lasting motivation. Motivators come from the work itself.
• Saying Maslow's needs must be fully met before moving up. Fix: Say lower needs must be broadly or reasonably satisfied. Also note that people differ and needs can overlap.
• Treating group and team as the same thing. Fix: Remember a team needs a shared goal and complementary skills. A group may only share a location or manager.
• Putting the stages in the wrong order, such as norming before storming. Fix: Use the order Forming, Storming, Norming, Performing. Conflict comes before agreement.
• Confusing Plant with Resource Investigator Fix: Plant creates ideas from within and works alone. Resource Investigator brings ideas and contacts in from outside.
• Confusing Co-ordinator with Shaper Fix: Co-ordinator guides calmly and delegates. Shaper pushes hard, challenges and can upset others.
• Assuming high cohesion always improves performance. Fix: Check the group's norms. Cohesion helps only if norms support organisational goals.
• Saying all conflict is harmful. Fix: State that conflict can be functional or dysfunctional and judge by its effect.

Exam tips

• Learn one-line definitions of trait, type, halo, horns, stereotyping and selective perception. Many objective questions test only these.
• In multiple response questions, read how many options to select before looking at the answers.
• Beware options that name a real theory from a different topic, such as motivation or leadership. They look plausible but answer a different question.
• In Section B tasks, tie your answer to the scenario. Name the term, then say how it affects the people in the case.
• Watch absolute words such as always or never. Statements about personality and attitudes are usually qualified.
• Learn the trigger words for each theory. Most Section A items can be answered from them.
• Know the contrast pairs: content versus process, Maslow versus Herzberg, and hygiene versus motivators.
• In multi-task questions, always apply the theory to the scenario facts. A definition alone earns little.