RBI Grade B Management and Organization Behavior Theory Study Notes, Concepts

By BYJU'S Exam Prep

Updated on: September 11th, 2023

The RBI Grade B phase 2 exam includes a section on management. Behavioral theory is one of the important aspects of Management. To stay ahead in the competition for the greatest job in RBI, you must begin preparing for that part as soon as possible.

You can clear the RBI Grade B exam with a proper preparation approach and practice. Today we will be discussing Situational Theory which is a topic under the leadership chapter of the Management section of RBI Grade B.

What is Behavioural Theory?

Leadership is shown by a person’s acts more than by his traits. Behavioral theories of leadership focus on the study of the specific behaviors of a leader. For behavioral theorists, a leader’s behavior is the best predictor of his leadership influences and as a result, is the best determinant of his or her leadership success.

This theory believes that Good leaders are not born they are made and emphasizes that strong leadership is the result of effective role behavior. The researchers have carried out studies to identify common leadership behaviors. After compiling and analyzing the results, the study led to the conclusion that there were two groups of behaviors that were strongly correlated. These were defined as:-

  • People-Oriented behavioral Leaders
  • Task-Oriented Leaders

Task-oriented leaders

  • The task-concerned leaders are focusing their behaviors on the organizational structure, and the operating procedures.
  • Task-oriented leaders are concerned with their staff’s motivation; however, it’s not their main concern.
  • Task-related functions or problem-solving functions relate to providing solutions to the problem faced by the groups in performing jobs and activities.

People-Oriented Behavioural Leaders

  • The people-oriented leaders focus their behaviors on ensuring that the inner needs of the people are satisfied.
  • They seek to motivate their staff by emphasizing human relations.
  • People-oriented leaders focus on the task and the results; they just achieve them through different means.
  • An individual who is able to perform both roles successfully would be an effective leader.

Further Leadership behaviors may also be viewed in two ways: functional and dysfunctional

  • Functional behavior influences followers positively and includes such functions as setting clear goals, motivating employees for achieving goals, raising the level of morale, building team spirit, effective two-way communication, etc.
  • Dysfunctional behavior is unfavorable to the followers and denotes ineffective leadership such behavior may be the inability to accept employee ideas, display of emotional immaturity, poor human relations, etc.

Implications of Theory

The theory believes that leaders can shape their behavior which appears to be functional and discard the one which appears to be dysfunctional. This theory suffers from two basic limitations: –

  1. A particular behavior may be functional at a point in time but it may be dysfunctional at another point in time.
  2. The effectiveness of leadership behavior depends on the various factor which is external to him like the nature of followers i.e. subordinates.

Hence the theory does not explain the leadership phenomenon fully.

How to Prepare Behavioral theory for the RBI Grade B exam?

  • First, go through the important concepts and points from any standard book that are mentioned in the official notification of RBI Grade B.
  • If possible, maintain your own hand-written notes which will help you in the last-minute revision.
  • Go through the previous year’s RBI Grade B question paper to know the types of questions asked from this chapter.
  • Practice MCQs and questions from our app or from any standard books.
  • Attempt mock tests and sectional tests regularly.

You can go through the following links for RBI Grade B 2023 preparation:

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This is all about Behavioral theory, how to prepare for Behavioral Theory, expert tips, and strategies to prepare for the upcoming RBI Grade B 2023 exam.

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