Organizational Behaviour Theories
Organizational Behaviour Theories in Entrepreneurship
Understanding Motivation, Leadership, and Group Dynamics
Organizational Behaviour (OB) is the study of how individuals and groups act within an organization. For founders, these theories are the "operating system" for managing teams, sustaining personal resilience, and scaling culture.
A — C
Achievement Motivation Theory: McClelland's core motivation theory suggesting that entrepreneurs are driven by a high "Need for Achievement" (n-Ach).
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Ambiguity Tolerance Theory: A behavioral trait theory exploring how individuals function and make decisions when outcomes are uncertain—a vital trait for early-stage founders.
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Attribution Theory: Explores how founders explain the causes of success or failure—whether they credit internal effort or external luck.
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Cognitive Evaluation Theory: Examines the tension between intrinsic motivation (passion) and extrinsic rewards (VC funding/money) in the entrepreneurial process.
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E — H
Expectancy Theory: Vroom's theory stating that effort is based on the belief that it will lead to performance and a desired reward.
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Goal-Setting Theory: (New) Developed by Locke & Latham, this explains how specific, challenging goals and immediate feedback lead to higher performance in startup teams.
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Great Man Theory: An early leadership theory suggesting that great leaders are born with certain traits that make them naturally fit to lead.
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L — P
Leader-Member Exchange (LMX): (New) Focuses on the two-way relationship between founders and each individual employee, categorizing them into "In-groups" and "Out-groups."
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Locus of Control Theory: Differentiates between individuals who believe they control their own destiny (Internal) versus those who credit fate (External).
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Psychological Capital (PsyCap): (New) Focuses on the "HERO" traits: Hope, Efficacy, Resilience, and Optimism, which are critical for surviving the "startup valley of death."
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Planned Behavior Theory: Ajzen’s model for how attitudes and perceived control combine to predict entrepreneurial intention.
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R — U
Self-Determination Theory (SDT): (New) Suggests that founders and employees are most productive when their needs for Autonomy, Competence, and Relatedness are met.
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Self-Efficacy Theory: Bandura's theory on an individual's belief in their own ability to execute the tasks required to succeed.
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Upper Echelons Theory: Posits that a firm's strategic outcomes are a direct reflection of the top managers' values and backgrounds.
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