ORGANISATIONAL BEHAVIOUR

MBA 1.2

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ORGANISATIONAL BEHAVIOUR SYLLABUS UNIT 1 UNIT 2 UNIT UNIT 4 UNIT 5 UNIT 6 3 Introduction to Organisational Behaviour, Meaning; Global scenario. Elements; Need; Approaches; Models;

Individual Behaviour; Personality; Learning; Attitudes; Perception; Motivation; Ability; Their relevant organizational behaviour. Group dynamics; Group norms; Group cohesiveness; Group Behance to organizational behaviour. Leadership Styles; Qualities; Organisational communication; Meaning importance, process, barriers; Methods to reduce barriers; Principle of effective communication. Stress; Meaning; Types; Sources; Consequences; Management of stress. Power and Politics; Definition; Types of Powers; Sources; Characteristics; Effective use of Power. Organisational Dynamics; Organisational design; Organisational effectiveness; Meaning, approaches; Organisational culture; Meaning, significance; Organisational Climate; Implications on organizational behaviour. Organisational Change; Meaning; Nature; Causes of change; Resistance of change; Management of change; Organisational development; Meaning; OD Interventions.

REFERENCE BOOKS 1. Fred Luthans, Organisational Behaviour, McGraw Hill Book Co., 1995. 2. Stephen P. Bobbins, Organisational Behaviour, Prentice Hall, 1997. 3. Keith Davis, Human Behaviour at Wor/c,.-M.cGraw Hill Book Co., 1991. 4. Gregory Moorehead and R.S. Griffin, Organisational Behaviours: Managing People and Organisations, Jaico, 1994. 5. Judith R. Gordon, A Diagnostic Approach to Organisational Behaviour, Allyn & Bacon, 1993.

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CONTENTS

No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

LESSON
INTRODUCTION TO ORGANISATIONAL BEHAVIOUR FOUNDATION OF ORGANISATIONAL BEHAVIOUR MODELS OF ORGANISATIONAL BEHAVIOUR GLOBAL SCENARIO OF ORGANISATIONAL BEHAVIOUR FOUNDATION OF INDIVIDUAL BEHAVIOUR PERSONALITY LEARNING AND BEHAVIOUR MODIFICATION ATTITUDE AND PERCEPTION MOTIVATION AND BEHAVIOUR JOB SATISFACTION GROUP DYNAMICS GROUP CONFLICT ORGANISATIONAL COMMUNICATIONS LEADERSHIP IN ORGANISATIONS STRESS MANAGEMENT POWER AND POLITICS ORGANISATIONAL DESIGN ORGANISATIONAL CULTURE AND CLIMATE. ORGANISATIONAL EFFECTIVENESS MANAGEMENT OF CHANGE CASE ANALYSIS

Pg.no. 4 7 12 16 18 21 25 28 32 44 47 52 56 66 73 77 81 85 87 90

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LESSON – 1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR

Learning Objectives After reading this lesson, you should be able to understand: • • • • The major environmental challenges and the paradigm shift that the management faces today The management perspective of organizational behaviour The historical background of modern organizational behaviour The modern approach to organizational behaviour

The knowledge and information explosion, global competition, total quality and diversity are some of the bitter realities that the managers are facing today. There are many solutions being offered to deal with these complex challenges. Yet the simple but most profound solution may be found in the words of Sam Walton, the richest person in the world and the founder of Wal-Mart. Sam was once asked the key to successful organizations and management. Sam quickly replied, "People are the key". The term paradigm comes from the Greek word 'paradigma', which means ''model, pattern or example". First introduced over thirty years ago, by the philosophy and science historian Thomas Khun, the term "paradigm" is now used as, a broad model, a framework, a way of thinking, and a scheme for understanding reality. The impact of information technology, total quality and diversity mentioned earlier has led to a paradigm shift. NEW PARADIGM The organizational behaviour has a goal lo help the managers make a transition to the new paradigm. Some of the new paradigm characteristics include coverage of second-generation information technology and total quality management such as empowerment, reengineering and benchmarking, and learning organization for managing diversity of work. The new paradigm sets the stage for the study, understanding, and application of the time-tested micro-variables, dynamics and macro-variables. One must know why management needs a new perspective to meet the environmental challenges and to shift to a new paradigm. A NEW PERSPECTIVE FOR MANAGEMENT Management is generally considered to have three major dimensions—technical, conceptual and human. The technical dimension consists of the manager's expertise in particular functional areas. They know the requirements of the jobs and have the functional knowledge to get the job done. But the practicing managers ignore the conceptual and human dimensions of their jobs. Most managers think that their employees are lazy, and are interested only in money, and that if you could make them happy in terms of money, they would be productive. If such assumptions are accepted, the human problems that the management is facing are relatively easy to solve. But human behaviour at work is much more complicated and diverse. The new perspective assumes that employees are extremely complex and that there is a need for theoretical understanding given by empirical research before applications can be made for managing people effectively. MODERN APPROACH TO ORGANIZATIONAL BEHAVIOUR The modern approach to organizational behaviour is the search for the truth of why people behave the way they do. The organizational behaviour is a delicate and complex process. If one aims to manage an organization, it is necessary to understand its operation. Organization is the combination of science and people. While science and technology is predictable, the human behaviour in organization is rather unpredictable. This is because it arises from deep needs and value systems of people. HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOUR Scientific Management Approach Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century. This theory supported the use of certain steps in scientifically studying each element of a job, selecting and training the best workers for the job arid making sure that the workers follow the prescribed method of doing the job. It provided a scientific rationale for job specialization and mass production. His assumption was that employees are motivated largely by money. To increase the output, Taylor advised managers to pay monetary incentives to efficient workers. Yet, his theory was criticized by many employers and workers. Workers objected to the pressure of work as being harder and faster. Critics worried that the methods took the humanity out of labor, reducing workers to machines

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responding to management incentives. Therefore, Taylor's view is now considered inadequate and narrow due to the points given by the critics. Bureaucratic Approach While scientific management was focusing on the interaction between workers and the task, me researchers were studying how to structure the organization more effectively. Instead of trying to make each worker more efficient, classical organization theory sought the most effective overall organizational structure for workers and managers. The theory's most prominent advocate, Max Weber, proposed a 'bureaucratic form' of structure, which he thought would work for all organizations. Weber's idea! bureaucracy was , logical, rational and efficient. He made the naive assumption that one structure would work best for all organizations. Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized the behavioral side of management. However, they did not emphasize the human dimensions. Although there were varied and complex reasons for the emerging importance of behavioral approach to management, it is generally recognized that the Hawthorne studies mark the historical roots for the field of organizational behaviour. Hawthorne Studies Even, as Taylor and Weber brought attention with their rational, logical approaches to more efficient productivity, their views were criticized on the ground that both approaches ignored worker's humanity. The real beginning of applied research in the area of organizational behaviour started with Hawthorne Experiments. In 1924, a group of professors began an enquiry into the human aspects of work and working conditions at the Hawthorne plant of Western Electric Company, Chicago. The findings of these studies were given a new name 'human relations' the studies brought out a number of findings relevant to understanding human behaviour at work. The Human element in the workplace was considerably more important. The workers are influenced by social factors and the behaviour of the individual worker is determined by the group. Hawthorne studies have been criticized for their research methods and conclusions drawn. But their impact on the emerging field of organizational behaviour was dramatic. They helped usher in a more humanity centered approach to work. APPROACHES TO ORGANIZATIONAL BEHAVIOUR There are mainly four approaches to organizational behaviour. They are: • Human resources approach ' • Contingency approach • Productivity approach • Systems approach Human Resources Approach The human resources approach is concerned with the growth and development of people towards higher levels of competency, creativity and fulfillment, because people are the central resource in any organization. This approach help employees become better in terms of work and responsibility and then it tries to create a climate in which they can contribute to the best of their improved abilities. This approach is also known as 'supportive approach' because the manager's primary role changes from control of employees to providing an active support for their growth and performance. A Contingency Approach A contingency approach to organizational behaviour implies that different situations require different behavioral practices for effectiveness instead of following a traditional approach for all situations. Each situation must be analyzed carefully to determine the significant variables that exist in order to establish the more effective practices. The strength of this approach is that it encourages analysis of each situation prior to action. Thus, it helps to use all the current knowledge about people in the organization in the most appropriate manner. Productivity Approach Productivity is a ratio that compares units of output with units of input. It is often measured in terms of economic inputs and outputs. Productivity is considered to be improved, if more outputs can be produced from the same amount of inputs. But besides economic inputs and outputs, human and social inputs and outputs also arc important. Systems Approach A system is an interrelated part of an organization or a society that interacts with everyone related to that organization or society and functions as a whole. Within the organization 'people' employ 'technology' in performing the 'task' that they are responsible for, while the 'structure' of the organization serves as a basis for co-ordinating all their different activities. The systems view emphasizes the interdependence of each of these elements within the organization, if the

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organization as a whole is to function effectively. The other key aspect of the systems view of organization is its emphasis on the interaction between the organization and its broader environment,, which consists of social, economic, cultural and political environment within which they operate. Organizations arc dependent upon their surrounding environment in two main ways: First, the organization requires 'inputs' from the environment in the form of raw material, people, money, ideas and so on. The organization itself can be thought of as performing certain 'transformation' processes, on its inputs in order to create outputs in the form of products or services. Secondly, the organization depends on environment such as, public to accept its output. The systems view of organization thus emphasizes on the key interdependencies that organizations must manage. Within themselves the organizations must trade off the interdependencies among people, tasks, technology and structure in order to perform their transformation processes effectively and efficiently. Organizations must also recognize their interdependence with the broader environments within which they exist.

CONTEMPORARY ORGANIZATIONAL BEHAVIOUR A Separate Field of Study
Organizational behaviour can be treated as a distinct field of study. It is yet to become a science. Now efforts are being made to synthesize principles, concepts and processes in this field of study. Interdisciplinary Approach Organizational behaviour is basically an interdisciplinary approach. It draws heavily from other disciplines like psychology, sociology and anthropology. Besides, it also takes relevant things from economics, political science, law and history. Organizational behaviour integrates the relevant contents of these disciplines to make them applicable for organizational analysis. e.g. it addresses issues, which may be relevant to the case, such as the following: • What facilitates accurate perception and attribution? • What influences individual, group and organizational learning and the development of individual attitudes toward .work? • How do individual differences in personality, personal development, and career development affect individual's behaviours and attitudes? • What motivates people to work, and how. does the organizational reward system influence worker's behaviour and attitudes? • How do managers build effective teams? • What contributes to effective decision-making? • What are the constituents of effective communication? • What are the characteristics of effective communication? • How can power be secured and used productively? • What factors contribute to effective negotiations? • How can conflict (between groups or between a manager and subordinates) be resolved or managed? • How can jobs and organizations be effectively designed? • How can managers help workers deal effectively with change? An Applied Science The basic objective of organizational behaviour is to make application of various researches to solve the organizational problems, particularly related to the human behavioral aspect. Normative and Value Centered Organizational behaviour is a normative science. A normative science prescribes how the various findings of researches can be applied to get organizational results, which are acceptable to the society. Thus, what is acceptable by the society or individuals engaged in an organization is a matter of values of the society and people concerned. Humanistic and Optimistic Organizational behaviour focuses the attention on people from humanistic point of view. It is based on the belief that needs and motivation of people are of high' concern. Further, there is optimism about the innate potential of man to be independent, creative, predictive and capable of contributing positively to the objectives of the organization. Oriented towards Organizational Objectives Organizational behaviour is oriented towards organizational objectives. In fact, organizational behaviour tries to integrate both individual and organizational objectives so that both are achieved simultaneously. A Total System Approach

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Each individual brings to an organisation a unique set of beliefs. The work will not be done unless "people" want to do the work and if the work is not done then there will be no organisation. the cooperation of the workers is crucial to the success or failure of the organisation. MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR Organisational behaviour is concerned with people's thoughts. Therefore.of any commercial organisation is to make money for its owners. As Nadler and Tushman put it. Accordingly. hospitals. and the organisation itself. attitudes and other personal characteristics and these characteristics of all individuals must interact with each other in order to create organisational #7 . values." The above definition has three parts—the individual behaviour. "Organisations are social inventions for accomplishing goals through group efforts". group influence and social and cultural factors. This definition covers wide variety-of groups such as businesses. groups and organisations. fraternal groups. While the primary goal . Organisational behaviour can then be defined as: "The study of human behaviour in organisational settings. individually or collectively. There are three significant aspects in the above definition. It is the people that primarily make up an organisation. both as members of the society at large and as a part of an organisation interact with each other and are inter-dependent. the management of organisational behaviour is central to the management task—a task that involves the capacity to "understand" the behaviour patterns of individuals. These reasons are the goals towards which all organisational efforts are directed.An individual's behaviour can be analyzed keeping in view his psychological framework. Hence. the interface between human behaviour and the organisational context. government agencies and so on. They are as follows: • Social Inventions: The word "social" as a derivative of society basically means gathering of people. schools. interpersonal-orientation. the organisation's work gets done through people. LESSON –2 FOUNDATION OF ORGANISATIONAL BEHAVIOUR Learning Objectives After reading this lesson. to ''predict'" what behavioural responses will be elicited by various managerial actions and finally to use this understanding and these predictions to achieve "control". Individuals in themselves have physical and intellectual limitations and these limitations can only be overcome by group efforts. "Understanding one individual's behaviour is challenging in and of itself. on their. own or in collaboration with technology. emotions and actions in setting up a work. but understanding group behaviour in an organisational environment is a monumental managerial task. you should be able to: • • • Define and explain the meaning of organizational behaviour Understand the nature and importance of organizational behaviour Relate the organizational behaviour to manager’s job DEFINITION OF MANAGEMENT Management is commonly defined as "Getting work done through other people". Understanding an individual behaviour is in itself a challenge. religious bodies. which require further analysis. understanding a group that is made up of different individuals and comprehending the many relationships among those individuals is even more complex. DEFINITION OF ORGANISATION According to Gary Johns. this goal is inter-related with many other goals. any organisational goal must integrate in itself the personal goals of all individuals associated with the organisation. • Accomplishing Goals: All organisations have reasons for their existence. • Group Effort: People. This simple definition explains the significance of the role of people. feelings. Ultimately. Thus. the organisation and the (interface between the two. individual's nature is quite complex and organizational behaviour by applying systems approach tries to find solutions for this complexity.

formal policies and procedures of the organisation. Over time. studying the people who-make it up. people as organisations. People make the decisions. Thus. They have a right to expect something in return beyond wages and benefits. Points of contact include managers. • Technology: Technology such as machines and work processes provide the resources with which people work and affects the tasks that they perform. As managers increasingly recognise the value of potential contributions by their employees. as a function of both the personal experiences and the organisation. in 'their own jobs. official or unofficial. he cannot understand how the organisation operates without. mostly as employees. the on-going behavioural processes involved. managers must understand the basic human element of their work. As resources. ELEMENTS OF ORGANISATIONAL BEHAVIOUR The key elements in the organisational behaviour are people. Above all. They have a right to expect satisfaction and to learn new skills. and without people there would be no organisations. organisational behaviour must look at the unique perspective that each individual brings to the work setting. solve the problems. Groups are dynamic and they work in the organisation to achieve their objectives. the characteristics and processes that are part of the organisation itself. An organisation. organisations are people. the organisation influences and is influenced by individuals. the study of organisational behaviour must consider the ways in which the individual and the organisation interact. people as resources and people as people. which takes place in organisations. structure. One cannot understand an individual’s behaviour completely without learning something about that individual's organisation. if managers are to understand the organisations in which they work. characteristically. In considering the people working in an organisation. Thus. • Structure: Structure defines the formal relationships of the people in organisations. and answer the questions. All of these mutually influence each other in a complex system that creates a context for a group of people. they must first understand the people who make up the organisations. An understanding of organisational behaviour can help the manager better appreciate the variety of individual needs and' expectations. #8 . people are one of the organisation's most valuable assets. • People: People make up the internal and social system of the organisation. 'and the characteristics and behaviours directly resulting from people with their individual needs and motivations working within the structure of the organisation. In addition to understanding. technology and the environment in which the organisation operates. Different people in the organisation are performing different type of jobs and they need to be (elated in some structural way so that their work can be effectively co-ordinated. Organisational behaviour offers three major ways of understanding this context. and vitalise and revitalise it. the organisation itself represents a crucial third perspective from which to view organisational behaviour.an argument derived from the simple notion of humanistic management. Clearly. The technology used has a significant influence on working relationships. Similarly. People spend a large part of their lives in . It is the part of a larger system that contains many other elements such as government. People create the organisation.settings. and various changes implemented by the organisation. They come in contact with other individuals and the organisation in a variety of ways. experiences from other organisation. the environment surrounding the organisation and 1 they also posses a personal background. But individuals do not work in isolation. exists before a particular person joins it and continues to exist after he leaves it. It allows people to do more and work better but it also restricts' people in various ways. family and other organisations. Organisational behaviour is concerned with the characteristics and behaviours of employees in isolation. changes.. • Environment: All organisations operate within an external environment. The groups may be big or small. The organisational behaviour is specifically concerned with work-related behaviour. too. it will become more and more important for managers and employees to grasp the complexities of organisational behaviour. NATURE OF ORGANISATIONAL BEHAVIOUR Each individual brings to an organisation a unique set of personal characteristics. the individual. guide and direct its course. co-workers. The organisation is also affected by the presence and eventual absence of the individual. Finally. formal or informal. They consist of individuals and groups. Thus. there is people as people . organisational settings.

These research results are advancing managerial knowledge of understanding group behaviour. cohesion. Thus. which provide such understanding. Group Level: Though people interpret anything at their individual level. judgement that explicitly takes into account the managers own goals. hang-ups. judgement that takes into account the important variables underlying the situation.. The uniqueness of rules and the environment of organisations forces managers to study organisational behaviour in order to learn about normal and abnormal ranges of behaviour. organisational behaviour helps managers in controlling and directing in #9 . avoidance of win-lose situation and focussing on total group objectives. This suggests that since an organisation is Ihe interaction of persons. organisational behaviour serves three purposes: • What causes behaviour? • Why particular antecedents cause behaviour? • Which antecedents of behaviour can be controlled directly and which are beyond control? A more specific and formal course in organisational behaviour helps an individual to develop more refined and workable sets of assumption that is directly relevant to his work interactions. procedures. rotation of members among groups. Barnard has observed that an organisation is a conscious interaction of two or more people. social and cultural implications. communication pattern and leadership. Understanding the effect of group relationships is important for managers in today's organisation. IMPORTANCE OF ORGANISATIONAL BEHAVIOUR Organisational behaviour offers several ideas to management as to how human factor should be properly emphasised to achieve organisational objectives.NEED FOR STUDYING ORGANISATIONAL BEHAVIOUR The rules of work are different from the rules of play. • • The co-operative relationships help the organisation in achieving its objectives. • Interpersonal Level: Human behaviour can be understood at the level of interpersonal interaction. Organisational behaviour integrates these factors to provide* simplicity in understanding the human behaviour. judgement that are assigned due recognition to the complexity of individual or group behaviour. they are often modified by group pressures. Organisational behaviour does not provide solutions to all complex and different behaviour puzzles of organisations. Inter-group Level: The organisation is made up of many groups that develop complex relationships to build their process and substance. Analysis of reciprocal relationships. Therefore. It is only the intelligent judgement of the manager in dealing with a specific issue that can try to solve the problem. they should be given adequate importance in managing the organisation. managers are required to control and direct the behaviour so that it conforms to the standards required for achieving the organisational objectives. • Controlling and Directing Behaviour: After understanding the mechanism of human behaviour. Organisational behaviour provides • means for understanding the interpersonal relationships in an organisation. blind spots and weaknesses. motives. group level and inter-group level. Thus. organisational behaviour can be understood at the individual level. managers are required to control and direct the behaviour at all levels of individual interaction. Organisational behaviour provides opportunity to management to analyse human behaviour and prescribe means for shaping it to a particular direction. which is very important for organisational morale and productivity. Organisational behaviour helps to analyse 'why' and 'how' an individual behaves in a particular way. Human behaviour is a complex phenomenon and is affected by a large number of factors including the psychological. individuals should be studied in groups also. Organisational behaviour only assists in making judgements that are derived from tenable assumptions. Organisational behaviour helps in predicting human behaviour in the organisational setting by drawing a clear distinction between individual behaviour and group behaviour. Organisational behaviour provides means to understand and achieve co-operative group relationships through interaction. which then become a force in shaping human behaviour. role analysis and transactional analysis are some of the common methods. Inter-group relationship may be in the form of co-operation or competition. Understanding Human Behaviour Organisational behaviour provides understanding the human behaviour in all directions in which the human beings interact. More specifically. Research in group dynamics has contributed vitally to organisational behaviour and shows how a group behaves in its norms. Thus. goals. interpersonal level.

How do people work together in groups? What factors determine whether group will be cohesive and productive? What types of tasks could be assigned to groups? These are some of the questions that can be asked about the effective functioning of groups in organisations. • Organisation at the Group Level: People rarely work independently in organisations. Organisational behaviour explains how various means of power and sanction can . Leadership: Organisational behaviour brings new insights and understanding to the practice and theory of leadership. Other factors such as the technology employed by the organisation. psychologically based theories of learning. Power is referred to as the capacity of an individual to take certain action and may be utilised in many ways. organisational climate includes creation of an atmosphere of effective supervision.• • • • • different areas such as use of power and sanction. It identifies various leadership styles available to a manager and analyses which style is more appropriate in a given situation. Instead they are complementary. • Organisation at the Organisational Level: Some organisational behaviour researchers take the organisation as a whole as their object of study. Emphasis is placed upon understanding how organisational structure and design influences the effectiveness of an organisation. they have to necessarily work in coordination to meet the organisational goals. practices and procedures. communication and building organisational climate favourable for better interaction. Use of Power and Sanction: The behaviours can be controlled and directed by the use of power and sanction. This frequently results in people working together in teams. managers can adopt styles keeping in view the various dimensions of organisations. At one level. Organisational climate takes a system perspective that affect human behaviour. Communication: Communication helps people to come in contact with each other. leadership. individuals and situations. A full and complete understanding of the nature of organisations and the determinants of their effectiveness requires a blending of knowledge derived from each perspective. Organisational Climate: Organisational climate refers to the total organisational situations affecting human behaviour. which are formally defined by the organisation. An important component of organisational behaviour involves the application of knowledge and theories from social psychology to the study of groups in organisations. congenial relations with others at the work place and a sense of accomplishment. Organisations have to adapt themselves to the environmental changes by making suitable. This j macro perspective on organisational behaviour draws heavily on theories and concepts from the discipline of 'sociology'. This approach to organisational behaviour draws heavily on the discipline of psychology and explains why individuals behave and react the way they do to different organisational policies. The communication process and its work in inter-personal dynamics have been evaluated by organisational behaviour. Finally. LEVELS OF ANALYSIS Organisational behaviour can be viewed from different perspectives or levels of analysis. as dynamic entities are characterised by pervasive changes. To achieve organisational objectives. organisational behaviour can be analysed from the perspective of the organisation as a whole. committees and groups. motivation. • Organisation at the Individual Level: Organisational behaviour can be studied in the perspective of individual members of the organisation. Organisational Adaptation: Organisations. Within this perspective. groups and departments. the communication must be effective. Researchers seek to understand the implications of the relationship between the organisation and its environment for the effectiveness of the organisation. These different perspectives on the study of organisational behaviour are not in conflict with one another. Thus. Besides improving the satisfactory working conditions and adequate compensation. satisfaction and leadership are brought to bear upon the behaviour and performance of individual members of an organisation. beliefs. A second level of analysis focuses upon the interaction among organisational members as they work in' teams. the opportunity for the realisation of personal goals. perceptions and personalities are taken into account and their impact upon individuals’ behaviour and performance on the job is studied. Factors such as attitudes. the size of the organisation and the organisation's age are also examined and their implications for effective organisational functioning are explored. internal arrangements such as convincing employees who normally have the tendency of resisting any changes. the organisation can be viewed as consisting of individuals working on tasks in the pursuit of the organisational goals. FUNDAMENTAL CONCEPTS OF ORGANISATIONAL BEHAVIOUR Organisational behaviour starts with the following six fundamental concepts revolving around the nature of people and organisations: The nature of people: • Individual differences • A whole person #10 .be utilised so that both organisational and individual objectives are achieved simultaneously.

in which power vests in the hands of the person with superior intellects. it is not only trying to develop a better employee but it also wants to develop a 'better person' in terms of all round growth and development. which is developed in Europe in the 8th Century. Individuals who have shared mutual interests are likely to make their organisation the strongest. • Value of the Person: It is more an ethical philosophy. In other words. needs and desires as well. It is also called social organisation or social structure. they provide a holistic concept of the subject. It stresses that people are to be treated with respect and dignity. A political and economic system based on the holding of. height. Since organisational behaviour involves people. Holistic organisational behaviour interprets people-organisation relationships in terms of the whole person. and forfeiture. ethical philosophy is involved in one way or the other. • A Whole Person: Though the organisation may feel that they are employing only the individual's skill or intelligence. Matriarchate: This is social system. because even though the views are different they have a shared concern for similar objectives. power lies in her hands. Individual differences mean that the management has to treat them differently to get the best out of them. his personal life cannot be separated from his work life since people function as total human beings. however simple. In other words. When management practices organisational behaviour. and to incorporate the perspectives of their colleagues. The benefit will extend beyond the firm into the larger society in which each employee lives. They are different not only in the physical appearance such as sex. The organisation can show to its employees how certain actions will increase their need fulfilment. Mutual Interest: Organisational relationships are most likely to be strong if different groups can negotiate strategies. power lies in his hands. complexion and so on but also different in their psychological trait such as intelligence. Patriarchate: This is social system. • Motivated behaviour: It is the urge of the individual to satisfy a particular need that motivates him to do an act. It is important for the individuals to think about their issues openly. The motivation could be positive or negative. in which a male is considered to be the family head and title or surname is traced through his chain. o o o o o o • Holistic Organisational Behaviour: When the above six concepts of organisational behaviour are considered together. This helps to build sustainable and harmonious activities that can operate in the mutual direct interests of the organisation. Segregation: This is a social system. attitude. weight. In other words. Meritocracy: This is a social system. in which a female is considered to be the family head and title or surname is traced through her chain. This can be defined as the interests that are common to both the parties and are related to the accomplishment of their respective goals. which provides separate facilities for minority groups of a society. in fact. entitles the people who do it to proper respect and recognition of their unique aspirations and abilities. Every job. This belief that each person is different from all others is typically called the 'Law of Individual Differences'. the blending of nature of people and organisation results in an holistic organisational behaviour. legal and military service of tenants. the individuals of a society are considered as a system organised by a characteristic pattern of relationships having a distinctive culture and values. This space for sharing ideas builds trust. land and relation of lord to vassal and characterized by homage.• Motivated behaviour • Value of the person The nature of organisation: • Social system • Mutual interest • Individual Differences: Individuals are different in their physical and mental traits. Class Structure: This is a social system of different classes with in a society. age. whole group. Thus. Motivation is essential for the proper functioning of organisations. whole organisation and whole social system. they employ the 'whole person'. In context with an organisation. motivation and perception. This means that individual does not have only the skill and intelligence but he has a personal life. The nature of an organisation can be understood with the help of tjie description of following two points: • Social System: A system is a group of independent and interrelated elements comprising a unified whole. It can be further divided into following categories: Feudal system: This is a social system. #11 .

but sometimes in varying forms. communicating and operating an organizational behaviour system. managers can exert some control over them. regularly examined and updated to meet new and emerging conditions. today increasing many organizations are experimenting with new ways to attract and motivate their employees. regularly examined and updated to meet new and emerging conditions. They have a greater chance of being successful. These systems exist in every organization. For some variables managers can only be aware of them and acknowledge their impact whereas for other variables. but sometimes in varying forms. level of customer service. Organizational behaviour system defines organizational structure and culture and explains their impact on employees.1 shows the major elements of a good organizational behaviour system: These systems exist in every organization. Earlier employers had no systematic program for managing their employees instead their simple rules served as a powerful influence on employees. if they have been consciously created. if they have been consciously created. The primary advantage of organizational behaviour system is to identify the major human and organizational variables that affect organizational outcomes. level of customer service. you should be able to understand: • • • • The concept of organizational behaviour system The different models of organizational behaviour The importance of organizational behaviour to managers The future of organizational behaviour Organizations have undergone tremendous change in the behaviour of their employee's. The primary advantage of organizational behaviour system is to identify the major human and organizational variables that affect organizational outcomes. The outcomes are measured in terms of quantity and quality of products and services. However. though. #12 . For some variables managers can only be aware of them and acknowledge their impact whereas for other variables. though. The outcomes arc measured in terms of quantity and quality of products and services. managers can exert some control over them. employee satisfaction and personal growth and development.LESSON –3 Models of organizational behaviour Learning Objectives After reading this lesson. They have a greater chance of being successful. employee satisfaction and personal growth and development. The figure 3. CONCEPT OF ORGANIZATIONAL BEHAVIOUR SYSTEM Organizations achieve their goals by creating.

In this kind of environment employees normally feel some degree of fulfillment and worthwhile contribution towards their work. It is a team concept. The primary challenge for management is to identify the model it is actually using and then assess its current effectiveness. Custodial Model This model focuses better employee satisfaction and security. Its main weakness is its high human cost. Since management supports employees in their work. Therefore. The psychological result of this model on employees is their increasing dependence on their boss. employees are happy and contented but they are not strongly motivated. Through leadership. as in the custodial approach. This results in enthusiasm in employees' performance. employees are required to follow their orders. Supportive Model The supportive model depends on 'leadership' instead of power or money. which is unpredictable. The model that a manager holds usually begins with certain assumptions about people and thereby leads to certain interpretations of organizational events. The following four models of organizational behaviour are as follows: A. FOUR MODELS OF ORGANIZATIONAL BEHAVIOUR Autocratic Power Authority Dependence on boss Subsistence Minimum Custodial Economic resources Money Dependence on organization Security Passive cooperation Supportive Leadership Support Participation Status and recognition Awakened drives Collegial Partnership Teamwork Self-discipline Self-actualization Moderate enthusiasm Basis of Model Managerialorientation Employee psychological result Employee needs met Performance result It is wrong to assume that a particular model is the best model. management provides a climate to help employees grow and accomplish in the interest of an organization.ELEMENTS OF THE SYSTEM The system's base rests in the fundamental beliefs and intentions of those who join together to create it such as owners and managers who currently administer it. Autocratic model B. The employee response to this situation is responsibility. Management is the coach that builds a better team. The philosophy of organizational behaviour held by management consists of an integrated set of assumptions and beliefs about the way things are. Hence. This model leads to employee dependence on an organization rather than on boss. Under this model organizations satisfy the security and welfare needs of employees. develop a drive to contribute and improve them if management will give them a chance. Collegial Model The term 'collegial' relates to a body of persons having a common purpose. Supportive model D. As a result of economic rewards and benefits. Custodial model C. in the minds managers. These philosophies are sometimes explicit and occasionally implicit. Collegial model Autocratic Model In an autocratic model'. and the way they should be. the manager has the power to command his subordinates to do a specific job. Management believes that it knows what is best for an organization and therefore. These differences are substantially caused by different models of organizational behaviour that dominant management's thought in each organization. The psychological result of the collegial approach for the employee is 'selfdiscipline'. Organizations differ in the quality of organizational behaviour that they develop. #13 . the purpose for these activities. The management is seen as joint contributor rather than as a boss. This model assumes that employees will take responsibility. the psychological result is a feeling of participation and task involvement in an. management's direction is to 'Support' the employee's job performance rather than to 'support' employee benefit payments. it is known as custodian model. organization. This is because a model depends on the knowledge about human behaviour in a particular environment.

He must be an ideal leader so that his subordinates follow his directions and guidelines with respect and dedication. All these roles. In this role. These duties include greeting visitors. taking important customers to lunch. social changes or changes in governmental rules and regulations. IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR TO MANAGERS Managers perform four major functions such as planning. These people include peers. they need to have a constant contact with their own subordinates. All these. #14 . All these interactions require an understanding of interpersonal behaviour. the existing philosophy. In addition to these functions there are ten managerial roles. These roles are developed by Henry Mintzberg in 1960s after a careful study of executives at work. These ten managerial roles are divided into three categories. Figure 3. • Liaison Role: The managers must maintain a network of outside contacts. government officials and community leaders. signing legal documents. superiors. vision and goals of manager. suppliers. Studies show that interacting with people takes up nearly 80% of a manager's time. attending a subordinate's wedding and speaking at functions in schools and churches. the managers build up their own external information system. are as follows: Interpersonal Roles In every organization managers spend a considerable amount of time in interacting with other people both within their own organizations as well as outside. customers. primarily. organizing. which can be defined as organized set of behaviors identified with the position. trade journals and informal personal contacts with outside agencies. The roles. in the context of organizational behaviour. These interactions involve the following three major interpersonal roles: • Figure/lead Role: Managers act as symbolic figureheads performing social or legal obligations. personal phone calls. directing and controlling. In addition. This can be achieved by attending meetings and professional conferences.The selection of model by a manager is determined by a number of factors such as. the informational role arises as a direct result of the interpersonal roles and these two categories give rise to the third category called decisional roles.2 shows the categories of managerial roles. subordinates. The first category called the interpersonal roles arises directly from the manager's position and the formal authority given to him. peers and superiors in order to assess the external environment of competition. are duties of a ceremonial nature but are important for the smooth functioning of an organization. • Leadership Role: The influence of the manager is most clearly seen in the leadership role as a leader of a unit or an organization. Since he is responsible for the activities of his subordinates therefore he must lead and coordinate their activities in meeting task-related goals and motivate them to perform better. in one form or other deal with people and their behaviour. The second category. environmental conditions help in determining which model will be the most effective model. In addition.

This can be done by reading reports and periodicals. which gives them a narrow view point. In that respect. organizational behaviour is now a part of the curriculum of almost all courses including engineering and medical. Although organizational behaviour has certain limitations. They are constantly on the lookout for new ideas for product improvement or product addition. • Spokesman Role: A manager has to be a spokesman for his unit and represent his unit in either sending relevant information to people outside his unit or making some demands on behalf of his unit. by virtue of his interpersonal contacts. phone calls. For example. FUTURE OF ORGANIZATIONAL BEHAVIOUR The growing interest in organizational behaviour stems from both a philosophical desire by many people to create more humanistic work places and a practical need to design more productive work environments. holding strategy meetings with project managers and R&D personnel. • Information Disseminator Role: The managers must transmit the information regarding changes in policies or other matters to their subordinates. interrogating their liaison contacts and through gossip. People who lack ethical values could use people in unethical ways. cash flow shortages and interpersonal conflicts. • Conflict Handling Role: The managers are constantly involved as judge in solving conflicts among the employees and between employees and management. This can be achieved through suggestion boxes. Decision Roles A manager must make decisions and solve organizational problems on the basis of the environmental information received. a tunnel vision that emphasizes on satisfying employee experiences while overlooking the broader system of an organization in relation to all its public. as entrepreneurs are constantly involved in improving their units and facing the dynamic technological challenges. too much security may lead to less employee initiative and growth. This relationship shows that organizational effectiveness is achieved not by maximizing one human variable but by working all system variables together in a balanced way. They initiate feasibility studies. machine breakdowns. organizational behaviour will release their creative potential to solve major social problems. there is a decline in returns. • Monitor Role: The managers are constantly monitoring and scanning their internal and external environment. The keys to its past and future success revolve around the related processes of theory development. while the production manager may give more importance to decisional roles. • The law of diminishing returns also operates in the case of organizational behaviour. The field of organizational behaviour has grown in depth and breadth. • It is only one of the many systems operating within a large social system. It is a way to improve but not an absolute answer to problems. As a result of these forces. Purchasing managers may negotiate prices with vendors. their peers and to other members of an organization. Mangers must anticipate such problems and take preventive action and take corrective action once the problem arises. In this way organizational behaviour will contribute to social improvements. that at some point increase of a desirable practice produce declining returns and sometimes. These problems may involve labor disputes. The concept implies that for any situation there is an optimum amount of a desirable practice. • A significant concern about organizational behaviour is that its knowledge and techniques could be used to manipulate people without regard for human welfare. It has provided and will provide much improvement in the human environment. • Negotiator Role: The managers in their negotiator role represent their organization in negotiating deals and agreements within and outside of an organization.. a manager plays four important roles. research and managerial practice. a manager executes the following three roles. • People who lack system understanding may develop a 'behavioral basis'. All these ten roles are important in a manager's job and are interrelated. hearsay and speculation. sales manager gives more importance to interpersonal roles. They negotiate contracts with the unions.Information Roles A manager. By building a better climate for people. i. This can be done through memos. customer complaints. individual meetings and group meetings. • Resource Allocation Role: The managers establish priorities among various projects or programs and make budgetary allocations to different activities of an organization based on these priorities.e. even though some roles may be more influential than others depending upon the managerial position. • Entrepreneur Role: Managers. In this capacity of information processing. When that point is exceeded. it has a tremendous potential to contribute to the advancement of civilisation. negative returns. It states. Sales managers may negotiate prices with prime customers. For example. LIMITATIONS OF ORGANIZATIONAL BEHAVIOUR • Organizational behaviour cannot abolish conflict and frustration but can only reduce them. emerges as a source of information about a variety of issues concerning an organization. arrange capital for new products and ask for suggestions from the employees to improve organization. collecting and studying information regarding their organization. Improved organizational behaviour is not #15 . employee grievances.

A few countries arc agriculture dominated and a few other manufacturing industries dominated. organized labor is mostly an arm of the authoritarian state and in some other nations labor is somewhat independent. among people and among the organizations of future. Barriers to Cultural Adaptation • Managers and other employees who come into a host country tend to exhibit different behaviors and somewhat. SOCIAL CONDITIONS In many countries due to poorly developed resources. you should be able to understand: • • The global scenario of organizational behaviour The barriers to cultural adaptation and measures to overcome those barriers Due to globalization of economy. there is shortage of managerial personnel. Another significant social condition in many countries is that the local culture is not familiar with advanced technology. thereby spreading the training through masses. The managerial personnel entering another nation need to adjust their leadership styles. communication and control becomes difficult. political and economic differences among countries" influence international organizational behaviour. In some nations. Naturally. and training programs need to be developed to train the local workers. organizations become cautious about further investments. A developed country can easily adopt advanced technology when compared to a less developed country. 'parochial'. workers' participation in management are restricted by law while in other countries they are permitted. scientists and technicians. This organizational instability leaves workers insecure and causes them to be passive and low in taking any initiatives. These multinational operations add new dimensions to organizational behaviour. MANAGING AN INTERNATIONAL WORKFORCE Whenever an organization expands its operations to other countries. These limiting conditions cannot be changed rapidly because they arc too well established and woven into the whole social fabric of a nation. Inflation makes the economic life of workers insecure when compared to developed countries. It should produce a higher quality of life in which there is improved harmony within each individual. In spite of instability. it tends to become multicultural and will then face the challenge of blending various cultures together. They are more concerned about themselves than the host country. The different socio-economic and political conditions existing in countries influence the introduction of advanced technology and sophisticated organizational systems.easy to apply but opportunities are there. a nationalistic drive is strong for locals to run their country and their organizations by themselves without any interference by foreign nationals. The social. POLITICAL CONDITIONS Political conditions that have a significant effect on organizational behaviour include instability of the government. It is a step into different social. These people are called. political and economic environments. communication patterns and other practices to fit their host country. Therefore. ECONOMIC CONDITIONS The most significant economic conditions in less developed nations are low per capita income and rapid inflation. the nature of their culture and work life will be different. #16 . For example. When the government is unstable. LESSON – 4 GLOBAL SCENARIO OF ORGANIZATIONAL BEHAVIOUR Learning Objectives After reading this lesson. • Another category of managers called 'individualistic' place greatest emphasis on their personal needs and welfare. State tends to be involved in collective bargaining and other practices that affect workers. Trained locals become the nucleus for developing others. many organizations now operate in more than one country. Their role is to provide fusion of cultures in which employees from both countries adjust to the new situation seeking a greater productivity for the benefit of both the organization and the people of the country in which it operates. see situation around them from their own perspectives. In some nations. Hence the required skills must be temporarily imported from other countries. restricting industries to a particular area and nationalistic drives such as self-sufficiency in latest technologies. They may fail to recognize the key differences between their own and other cultures.

customs. #17 . They usually can communicate fluently in more than one language. it is difficult for expatriates to re-adjust to the surroundings of their home country. culture and political environment in which the employee will be living will help for cultural adaptation. After adjusting to the culture of another nation and enjoying its uniqueness. Organization structures and communication patterns need to be suitable for local operations. Cultural Contingencies Productive business practices from one country cannot be transferred directly to another country. economic development and employee's values in the host country. Cultural Distance To decide the amount of adaptation that may be required when personnel moves to another country. who can withstand/adjust cultural shocks for international assignments* is important. Whatever may be the amount of cultural distance. friends and colleagues • Unique currency system Many expatriates report difficulty in adjusting to different human resource management philosophies. managers need to make adjustments in their communication suited to< local cultures. dress. Overcoming Barriers to Cultural Adaptation • Careful selection. the language. They may not know how to act. • Pre-departure training in geography. personnel practices and production methods need to be adapted to a different labor force. Motivating and Leading Local Employees Same motivational tools may not suit the employees of all the nations. Cultural shock is virtually universal.• Another potential barrier to easy adaptation of another culture occurs. Hence. communication problems may also arise between the expatriate manager and the employees of the host country. their attention needs to be directed toward integrating the technological approaches with the local cultures involved. Hence. If local culture is ignored. appropriate motivational techniques need to be implemented depending on the requirement of employees of that particular nation. Hence. the different currency and work attitudes in another culture. Cultural Shock When employees enter another nation they tend to suffer cultural shock. it is helpful to understand the cultural distance between the two countries. The manager's job is to make the employees adapt to the other culture and integrate the interests of the various cultures involved. Cultural distance is the amount of distance between any two social systems. This reflects the idea of cultural contingency that the most productive practices for a particular nation will depend heavily on the culture. Hence. the expatriate managers must learn to operate effectively in a new environment with certain amount of flexibility. This feeling interferes with understanding human: behaviour in other cultures and obtaining productivity from local employees. These employees are 'trans-cultural’ employees because they operate effectively in several cultures. Labor policy. Some of the more frequent reasons for cultural shock are as follows: • Different management philosophies • New language • Alternative food. social system. Eventually. Similarly. a cadre of employees with cross-cultural adaptability can be developed in organizations with large international operations. when-people are predisposed to believe that their homeland conditions are the-best. of employees. MANAGEMENT'S INTEGRATING ROLE Once managers are in a host country. availability of goods • Attitude towards work and productivity • Separation from family. the resulting imbalance in the social system interferes with the productivity. • Incentives and guarantees for better position will motivate employees for cultural adaptation in the new country. They are low in ethnocentrism and adapt readily to different cultures without major cultural shock. organizations need repatriation policies and programs to help returning employees obtain suitable assignments and adjust to the 'new' environments. • Employees who return to their home country after working in another nation for sometime tend to suffer cultural shock in their own homeland. This predisposition is known as the 'self-reference criterion' or 'ethnocentrism'. may fear losing face and self-confidence or may become emotionally upset. which is the insecurity and disorientation caused by encountering a different culture. it does affect the responses of all individuals to business.

thus. a car. respond to them in an appropriate manner and learn from the result of these responses. constant change in the needs and requirements of people and organization. These responses would reflect psychological structure of the person and may be results' of the combination of biological and psychological processes. markets and managers truly diversified. for example. respect its integrity. Whenever people buy something. each employee has a specific set of needs to fulfill and a set of job related behaviors and abilities to contribute. the behavior of individuals in organization is the primary concern of management and it is essential that the managers should have an understanding of the factors influencing the behavior of the employees they manage. If either party perceives an imbalance or iniquity in the contract. An individual makes a variety of contributions to an organization in the form of—efforts. One specific aspect of managing psychological contracts is managing the person-job fit. differences in individual skills. is to manage the psychological contracts. loyalty and so forth. A psychological contract is not written down like a legal contract. Of course. promotion. acknowledge its benefits and use its differences effectively in their organization. most people. In return for contributions. time. ability. If both the individual and the organization consider the psychological contract fair and equitable. skills. but they recognize each local culture. The 'person-job fit' is the extent to which the contributions made by the individual match the incentives offered by the organization. they will be satisfied with the relationship and are likely to continue it. and job security to the employee. For a firm to be truly multi-national in character. the incentives must serve the employees' needs in return. These contributions presumably satisfy various needs and requirements of the organization. LESSON – 5 FOUNDATION OF INDIVIDUAL BEHAVIOR Learning Objectives After reading this lesson. He believes that people are influenced by a number of diversified factors. which interpret them. Thus.Trans-cultural employees are especially needed in large. which is. is very difficult to define in absolute terms. Similarly. The influence of these factors determines the pattern of human behavior. it may initiate a change. A major challenge faced by an organization.1 identifies five sets of factors that have an impact upon individual behavior in organizations. it should have ownership. operations. A psychological contract is the overall set of expectations that an individual holds with respect to his or her contributions to the. considerable research into the human behavior and its causes. which can be both genetic and environmental. when they begin a working relationship with an organization formulate a psychological contract with their employer. considered a complex phenomenon. such a precise. In theory. organization and the organization's response to those contributions. Its leaders look to the world as an economic and social unit. It is primarily a combination of responses to external and internal stimuli. you should be able to: • • Understand the nature of individual differences in organizations Identify the individual factors affecting organizational behavior INDIVIDUAL BEHAVIOR Human behavior. Psychologist Kurt Levin has conducted. both the buyer and the seller sign a contract that specifies the terms of the sales agreement. If the organization can take complete advantage of those behaviors and abilities and exactly fulfill the employee's needs. multinational firms that operate in a-variety of national cultures. Just as the contributions available from the individual must satisfy the organization's needs. the organization provides incentives such as pay. #18 . it will achieve a perfect person-job fit. level of person-job fit is seldom achieved due to various reasons such as imperfect selection procedures. The figure 5.

evaluating and setting personal standards are particularly relevant to organizational. those involving expectation. Self-esteem Self-esteem is a belief over one's own worth based on an overall self-evaluation. The figure 5. This brings us to the role of cognitions. planning. • • • • • Physical Differences Height Weight Body Shape Appearance Complexion Psychological Differences • Personality • Attitudes • Perception • Motivation • Learning figure 5.2 Whenever an organization attempts to assess the individual differences among its employees. according to a recent research. "any knowledge.2 shows the attributes of physical and psychological differences. cognitive. tend to have trouble in dealing effectively with others. high self-esteem subjects tended to become self-centered and boastful when faced with situations under pressure Hence moderate self-esteem is desirable. According to one organizational behavior writer. "Self-efficacy arises from the gradual acquisition of complex. and/or physical skills through experience". High self-esteem individuals. 3. Offer work involving variety. Those with low self-esteem tend to view themselves in negative terms. "variability among workers is substantial at all levels but increases dramatically with job complexity. recent research uncovered flaws among those having high self-esteem. as in the past. interests. IMPORTANT DIMENSIONS OF INDIVIDUAL DIFFERENCES • Self-concept • Personality dimensions • Abilities. linguistic. Among many different types of cognitions. social and spiritual or moral being". Due to these reasons. Sociologists Viktor Gecas defines self-concept as "the concept the individual has of himself as a physical. social. opinion. skills and abilities. high self-esteem is generally considered a positive trait because it is associated with better performance and greater satisfaction. Managers can build employee self-esteem in four ways: Be supportive by showing concern for personal problems. Individual differences may be physical and psychological. goal setting. autonomy and challenges that suit the individual's values. 1. in contrast. and • Personal values and ethics. growing work force diversity compel managers to view individual differences in a fresh way. Individual differences make the manager's job extremely challenging. today's managers need to better understand and accommodate employee diversity and individual differences. A self-concept would be impossible without the capacity to think. Awareness of self is referred to as one's self-concept.NATURE OF INDIVIDUAL DIFFERENCES Individual differences are personal attributes that vary from one person to another. Self-concept Self is the core of one's conscious existence. 2. and are hampered by self-doubts. In fact. see themselves as worthwhile. or belief about the environment about oneself. They do not feel good about themselves. Cognitions represent. reward successes. Although. or about one's behavior". Have faith in each employee's self-management ability. it must consider the situation in which that particular behavior occurs. then. 4. In other words. Strive for management-employee cohesiveness and trust building. every individual recognizes himself as a distinct individual. status and contribution. behavior. Leaders now talk frequently about "valuing differences" and learn to "manage diversity". capable and acceptable. Individuals who are satisfied in one context may prove to be dissatisfied in another context. is a major challenge for organizations as they attempt to establish effective psychological contracts with their employees and achieve optimal fits between people and jobs. So rather than limiting diversity. #19 . Assessing both individual differences and contributions in relation to incentives and contexts. Self-efficacy Self-efficacy is a person's belief about his' or her chances of successfully accomplishing a specific task. Specifically.

he develops more competency as a tax expert. Learning opportunities translate aptitude into abilities through practice. PERSONAL VALUES AND ETHICS According to Milton Rokeach. comprehension and inter-personal abilities can also be developed through practice and education. • Ability refers to an individual's skill to perform effectively in one or more areas of activity. memory visualization. traits associated with a strong sense of responsibility and determination generally perform better than those who do not. For example. • Rules and rewards should be administered impartially.There is strong linkage between high self-efficacy expectations and success in terms of physical and mental tasks. achieve the greatest good for the greatest number of people. For example. addiction control. experience and formal training. an accountant with numerical "ability and accounting skill takes a position in the Taxation Department and as time passes. anxiety reduction. #20 . Even in the absence of such formal programs. it becomes a skill. the terms business ethics and management ethics are often heard. Thus. • For goal-setting and quality improvement. flexibility. five personality dimensions are: extroversion. PHYSICAL AND INTELLECTUAL QUALITIES Physical differences among individuals are the most visible of all differences. when a particular ability is applied to a specialized area. for example. • Competencies are skills associated with specialization. the-individual to specialize in some field. • For systematic self-management training. Ideally. endurance and stamina can be developed with exercise and training. The abilities/skills and competencies of employees are both physical and intellectual qualities. They are also relatively easy to assess. a value is "an enduring belief that a specific mode of conduct or end-stated of existence is personally or socially preferable to an opposite or converse mode of conduct are end-state of existence". It is concerned with right versus wrong and good versus bad. • Basic human rights should be respected. pain tolerance and illness recovery. accounting and computer science. these personality dimensions that correlate positively and strongly with job performance would be helpful in the selection. • To evolve suitable leadership. Organizations have to ensure that people possess the necessary abilities to engage in the behaviors required for effective performance. • For designing job. Individuals with numerical ability. Self-efficacy Implications for Managers Managers need to nurture self-efficacy in them and in their employees. The individuals who exhibit. Moral Principles for Managers • Judge actions by their consequences. Competencies are skills that have been refined by practice and experience and that enable. Self-efficacy requires constructive action in each of the following managerial areas: • To design recruitment selection procedure. such as physical. Personality Dimensions The big. Mental abilities such as reasoning. but they too can be assessed by fairly objective means. agreeableness. (for example accounting). skills and competencies in order to remain valuable to their organizations. Aptitudes are relatively stable capacities for performing some activity effectively. Ethics involve the study of moral issues and choices. • To design interview questions to probe applicant's general self-efficacy for determining orientation and training needs. Physical abilities such as strength. Oppositely. an individual with numerical ability who goes to school to learn accounting develops a numerical skill specific to that field'. • Skills are generally thought of as being more task-specific capabilities than abilities. those with low self-efficacy expectations tend to have low success rates. This can 6e accomplished either by careful selection of people or by a combination of selection and training. fairly and equitably. • To design suitable regards. many individuals manage their own careers in such a way as to continually upgrade their abilities. Intellectual differences are somewhat more difficult to discern. mental or interpersonal work. Relative to the workplace. thoroughness. Abilities develop from an individual's natural aptitudes and subsequent learning opportunities. training and appraisal of employees. can be trained to apply their ability in the field of engineering. emotional stability and openness to experience.

• Screen potential employees by checking references. Ethical behavior is a 1 top to bottom proposition. #21 . and other information for ascertaining their ethical behavior. credentials.Improving Organization's Ethical Climate • Managers are powerful role models whose habits and actual behavior send clear signals about the importance of ethical conduct.

talkative and assertive. it asserts that individuals do not change all at once. This is equivalent to recognizing thd social learning aspects related to personality. cooperative and trusting. • Stages: According to Sigmund Freud human personality progresses through four stages: dependent. you should be able to: • • • • Understand perceptual clarity about personality Discuss main determinants of personality Explain nature and dimensions of personality Describe personality attributes that are relevant to organizational behavior Personality is a complex. feelings. The managers should. Experienced managers become aware of the stages that their employees often go through. religious and aesthetic preferences but each individual's nature differen tiates that person from all others. values and actions remain relatively stable over time. From this perspective. occur gradually over a period of time. facial features. compulsive. This helps them 19 deal with these stages effectively and promote maximum growth for the individual and for the organization. like social. Such a social learning analysis is one of the most comprehensive and meaningful ways included in the overall study of organizational behavior. 3. multi-dimensional construct and there is no simple definition of what personality is. attempt to understand certain dimensions of personality. According to some trait theories. Yet they differ in some other specific attributes. People affect others depending primarily upon their external appearance such as height. These three parts interact with • each other to shape personality.6 PERSONALITY Learning Objectives After reading this lesson. Besides physical appearance and personality traits. their personalities become very clearly defined and generally stable. Characteristics of these traits can be summarized as follows: 1. all people share common traits. Conscientiousness: Responsible. #22 . Maddi defines personality as. Openness to Experience: Imaginative. 5. In particular. “A stable set of characteristics and tendencies that determine those commonalities and differences in the psychological behavior and that may not be easily understood as the sole result of the social and biological pressures of the moment". oedipal and mature. The definition. In simple terms. the aspects of personality concerned with the self-concept such as self-esteem and self-efficacy and the person-situation interaction also play important roles. Some personality theorists stress the need 6f identifying person-situation as interaction. Extroversion: Sociable. 4.LESSON . five personality traits especially related to job performance have recently emerged from research. Emotional Stability: Viewed from a negative standpoint such as tense. (political. does not mean that people never change. therefore. persistent and achievement-oriented. insecure and nervous. weight. the social context (family and friends) and the cultural context (religion and values). as well as their pattern of inner and outer measurable traits. Changes in individual's personality can. which are as follows: • Determinants: The most widely studied determinants of personality are biological. This concept of stages of growth provides a valuable perspective to organizational behavior. This can enable them to predict the behavior of their employees on a daily basis. however. From the above definition we can infer that all individuals have some universally common characteristics. artistically sensitive and intellectual. Three major types of factors play important roles in personality formation. 2. and the person and situation interaction. dependable. however. Their thoughts. Agreeableness: Good-natured. social and cultural. color and other physical aspects and traits. • Traits: Traits to personality are also based on psychology. People grow up in the presence of certain hereditary characteristics (body shape and height). As people grow into adulthood. This makes it difficult for the managers to assume that they can apply same reward types or motivation techniques to modify different individual behaviors. personality means the way people affect others. It also involves people's understanding themselves. Personality traits are very important in organizational behavior. PERSONALITY FORMATION The personality formation of an individual starts at birth and continues throughout his life. Identifying the above "big five" traits related to performance reveals that personality plays an important role in organizational behavior.

They. The need for autonomy: Those in need for autonomy function in the best way when not closely supervised. While there is some element of introversion as well as extroversion in all of us.e. As a personality attribute. Self-esteem is important to self-concept. personal relations unit. preferring to interact with a small intimate circle of friends.these individuals think that forces beyond their control dictate the happenings around them. Some people. lively and gregarious and seek outward stimuli or external exchanges. people with an external locus of control. They may like a reward system that recognizes individual performance and contributions. Managers have to work well under conditions of extreme uncertainty and insufficient information. important and worthy individuals. on the contrary. searching for external stimuli with which they can interact. they may prefer a decentralized organization where they have a right of decision-making and work with a leader who provides them freedom and autonomy. reflective. i. on the other Hand. The need for dominance: Those high in need for dominance are very effective while operating in environments where they can actively enforce their legitimate authority. introspective. They are as follows: • • • • The need for achievement: Those with a high achievement need engage themselves proactively in work behaviors in order to feel proud of their achievements and successes. The need for affiliation: Those in greater need for affiliation like to work cooperatively with others. locus of control has clear implications for organizations. which means they have a relatively strong desire to participate in the management of their organizations and have a' freedom to do their jobs. people tend to be dominant as either extroverts or introverts. Introverts are more likely to be successful when they can work on highly abstract ideas such as R&D work. strongly believe that each individual is in control of his or her life. are quiet. believe that if they work hard they will certainly succeed. certain individuals have an internal locus of control. where they can interact face to face with others. Extroversion. Thus. Conversely. Such individuals are likely to be most successful while working in the sales department. in a relatively quiet atmosphere. the way individuals. who have a low tolerance for ambiguity may be effective in structured work settings but find it almost impossible to operate effectively when things are rapidly changing and much information about the future events is not available. define #23 . Since managers have to constantly interact with individuals both in and out of the organization and influence people to achieve the organization's goals. publicity office. For example. some people think that what happens to them is a result of fate. Self-Esteem and Self-Concept Self-esteem denotes the extent to which individuals consistently regard themselves as capable. Locus of Control Locus of control is the degree to which an individual believes that his or her behavior has direct impact on the consequences of that behavior. Self-esteem is an important personality factor that determines how managers perceive themselves and their role in the organization. They may prefer a leader who makes most of the decisions and a reward system that considers seniority rather than merit. rather than the lack of skills or poor performance on their part. Introversion and Extroversion Introversion is the tendency of individuals. Extroverts are sociable. They may incline to structured jobs where standard procedures are defined for them.. and so on. it is believed that extroverts are likely to be more successful as managers. are likely to prefer a more centralized organization where they need not take any decisions. luck or the behavior of other people. successful. Because. Managers. Managers who have a high tolerance for ambiguity can cope up well under these conditions. tolerance for ambiguity is a personality dimension necessary for managerial success. chance. they are said to have an external locus of control. They are said to have an internal locus of control. refers to the tendency in individuals to look outside themselves. Tolerance for Ambiguity This personality characteristic indicates the level of uncertainty that people can tolerate to work efficiently without experiencing undue stress.PERSONALITY FACTORS IN ORGANISATIQN5 Some of the important personality factors that determine what kind of behaviors are exhibited at work include the following: Need Pattern Steers and Braunstein in 1976 ^developed a scale for the four needs of personality that became apparent in the 'work environment. especially when things are rapidly changing in the organization's external environment. and intellectual people. for example. By contrast. Introverts. Thus. thoughts and ideas within themselves. which directs them to be inward and process feelings.

But he may also raise questions. Work-Ethic Orientation Some individuals are highly work-oriented while others try to do the minimum Work that is necessary to get by without being fired on-the-job. High self-esteem provides a high sense of selfconcept. Thus. In contrast. He is said to be a person who is close-minded or highly dogmatic. which are beyond the managers’ control. There are many changes taking place in the internal and the external environment of an organization. Authoritarianism and Dogmatism Authoritarianism is the extent to which an individual believes that power and status differences are important within' hierarchical social systems like organizations. there arc some personality ^predispositions. Naturally. and try to gain control of people. A person who is not highly authoritarian might agree to carry out appropriate and reasonable directives from his boss.. Type B persons are easy-going individuals who do not feel the time urgency. the two are mutually reinforcing. Too much "workahollism". a high tolerance for ambiguity is a desired managerial trait. which are favourable "to managerial effectiveness and to the success of managers. Risk Propensity Risk-propensity is the decree to which an individual is willing to take chances and make risky decisions.e. might lead to premature physical and mental exhaustion and health problems. Machiavellianism Machiavellianism is manipulating or influencing other people as a primary way of achieving one's goal. Type A and B Personalities Type A persons feel a chronic sense of time urgency. Thus. express disagreement and even refuse to carry out requests if they arc for some reason objectionable. Therefore. exhibit a competitive drive. willing to twist and turn facts to influence others. they would tend to define themselves as highly valued individuals in the organizational system. Similarly. which.themselves as to who they are and derive their sense of identity. are highly achievement-oriented. Apart from possessing the necessary skills and abilities. several unpredictable factors are involved in any complex situation. not dogmatic are most likely to be useful and productive organizational members. if he tends to be logical in assessing the system around. In sales and other people-oriented roles. they should be able to. The above ten different personality predispositions are important for individual. Dogmatism is the rigidity of a person's beliefs and his or her openness to other viewpoints. and who do not experience the competitive drive. individuals who are. The higher the self-concept and self-esteem. extrovert managers will fit better in their jobs. For example. A manager with a high-risk propensity might be expected to experiment with new ideas and to lead the organization in new directions. however. they will be enhancing their selfconcept i. a manager with low risk propensity might lead to a stagnant and overly conservative organization. which is dysfunctional for both organization and the workaholic members. an employee who is highly authoritarian may accept directives or orders from his superior without much questioning. Managers with a good mix of achievements. affiliations and power will be successful in most situations. A high level of work ethic orientation of members is good for the organization to achieve its goals.. While Type A persons help the organization to move ahead in a relatively short period of time they may also suffer health problems. Extreme work ethic values could lead to traits of "workahollism" where work is considered as the only primary motive for living with very little outside interests. in turn. reinforces high self-esteem. the greater will be their contributions to the goals of the organization. For a workaholic turning to work can sometimes become a viable alternative to facing non-work related problems. Thus. Type A individuals are significantly more prone to heart attacks than Type B individuals. DESIRED PERSONALITY CHARACTERISTICS FOR EFFECTIVE MANAGERS Obviously. especially when the system rewards them for their contributions. a manager may be unwilling to listen to a new idea related to doing something more efficiently. The extremely work oriented person gets greatly involved in the job. but given the degree of change in the nature of organizations and their environments. An individual tends to be Machiavellian. without experiencing undue stress.dogmatic in their beliefs respectively. handle situations as they come. Dogmatism can be either beneficial or detrimental to organizations. and are impatient when their work is slowed down for any reason. The popular terms 'close-minded' and 'open-minded' describe people who are more and less . which might be detrimental to both themselves and the organization in the long run. events and situations by manipulating the system to his advantage. A manager who is very receptive to hearing about and trying out new ideas in the same circumstances might be seen as more open-minded or less dogmatic. managerial and organizational effectiveness. managers with internal locus of control will be more efficient as #24 . managers need to develop a high tolerance for ambiguity. Individuals with a high selfesteem will try to take on more challenging assignments and be successful. This is because they will have the drive to achieve the goals and the interpersonal orientation to get the job done through others. For example.

"to some extent. which have inbuilt performance pressures and deadlines. For instance. like some other people's. Probably the best statement on personality was made many years ago by Kluckhohn and Murray. our tolerance for ambiguity and ability to handle stress can be considerably enhanced. Also. As defined above. Most recently done studies indicate that self-esteem plays an important moderating role in the areas of emotional and behavioral responses and stress of organizational members. self and situational interactions. Recognizing the essential ingredients for managerial success is the first step towards making the changes. They are likely to be more successful in their jobs. the attributions we make for success such as internal versus external-locus of control can be changed. to the people around them" Self-efficacy is concerned with self-perceptions of how well a person can cope with situations as they arise. Managers with good work ethic values. self-efficacy is conceptually close to self-esteem. while self-efficacy tends to be situation specific. has been shown to have an empirical relationship with organizational performance and other dynamics of organizational behavior. Those with high self-efficacy feel capable and confident of performing well in a situation. This self is particularly relevant to the concepts of self-esteem and self-efficacy in the field of organizational behavior." #25 . Managers with Type A personalities may suit very well for some jobs. but they need to know how to relax through exercises and self-monitor their stress levels.intellectual and skilled performers. Selfefficacy. our latent needs can be activated and our skills in decision-making can be increased through training programs and by deliberately making the necessary changes. secure. personality is a very diverse and complex cognitive process. Considerable research has been done on the role played by self-esteem outcomes in the organizational behavior. a person's personality is like all other people's. The human self is made of many interacting parts and may be thought of as the personality viewed from within. empowered and connected. In the field of organizational behavior. People's self-esteem has to do with their self-perceived competence and self-image. personality means the whole person. In summary. It is concerned with external appearance and traits. competent. THE SELF-CONCEPT: SELF-ESTEEM AND SELF-EFFICACY People's attempt to understand themselves is called the self-concept in personality theory. Miner points out the differences by noting that self-esteem tends to be a generalized trait (it will be present in any situation). and like no other people's. It incorporates almost everything. Personality is a relatively stable factor. but our predispositions can be changed through conscious choice. will get more involved in their jobs and make things happen. It was recently noted that. "both research and everyday experience confirm that employees with high self-esteem feel unique.

cue stimuli. Drives are basically of two types -primary (or physiological). COMPONENTS OF THE LEARNING PROCESS The components of learning process are: drive. The. Responses may be in the physical form or may be in terms of attitudes. behavioral change must be relatively permanent. Without reinforcement. Learning generally has the connotation of improved behavior. the supervisor discriminates between the worker producing low quality products and the worker producing high quality products. one with low quality and other with high quality. Some of the learning is retained over a period of time while others may be forgotten. The behavioral change must be based oh some form of practice or experience. and work restrictions are also learned. The idea is to discover the conditions under which stimulus will increase the probability of eliciting a specific response. Discrimination has wide applications in 'organizational behavior. Responses The stimulus results in responses. reinforcement and retention. they will have the same probability of evoking a specified response. Learning can be defined as “relatively permanent change in behavior that occurs as a result of experience or reinforced practice". Any temporary change in behavior is not a part of learning. stereotypes.any strong stimulus that impels action. 3. but bad habits. The practice or experience must be reinforced in order so as to facilitate learning to occur. The individual can borrow from past learning experiences to adjust more smoothly to new learning situations. Individuals operate under many drives at the same time. and secondary (or psychological). Cue Stimuli Cue stimuli are those factors that exist in the environment as perceived by the individual. There may be two types i of stimuli with respect to their results in terms of response concerned: generalization and discrimination. Reinforcement may be defined as the environmental event's affecting the probability of occurrence of responses with which they are associated.LESSON – 7 LEARNING AND BEHAVIOR MODIFICATION Learning Objectives After reading this lesson. Generalization occurs when a response is elicited by a similar but new stimulus. Learning involves a change in behavior. perception or other complex phenomena. familiarity. There are four important points in the definition of learning: 1. 4. no measurable modification of behavior takes place. To predict a behavior. These two categories of drives often interact with each other. For example. it is necessary to establish which drives are stimulating the most. #26 . Drive Learning frequently occurs in the presence of drive . and positively responds only to the quality conscious worker. you should be able to: • • • Understand various factors affecting human behavior Explain implications of behavior modification Describe reinforcement for inducing positive behavior Learning is an important psychological process that-determines human behavior. prejudices. a supervisor can discriminate between two equally high producing workers. a person does not have to 'completely relearn each of the new tasks. It allows the members to adapt to overall changing conditions and specific new assignments. 2. Discrimination is a procedure in which an organization learns to emit a response to a stimulus but avoids making the same response to a similar but somewhat different stimulus. Because of generalization. though this change is not necessarily an improvement over previous behavior. In the above example. If two stimuli are exactly alike. Retention The stability of learned behavior over time is defined as retention and its contrary is known as forgetting. response. The principle of generalization has important implications for human learning. Reinforcement Reinforcement is a fundamental condition of learning.

Most behaviors in organizations are learned. Pavlov had conditioned the dog to respond to a learned stimulus. When the dog saw the meat. Thorndike called this the "law of exercise" which states that behavior can be learned by repetitive association between a stimulus and a response. Negative Reinforcement The threat of punishment is known as negative reinforcement. suggests that individuals emit responses that are either not rewarded or are punished. Primary reinforcers must be learned. and it is voluntary rather than reflexive. Operant Conditioning An operant is defined as a behavior that produces effects. management must select reinforcers that are sufficiently powerful and durable. Primary reinforcers such as food. Extinction Extinction is an effective method of controlling undesirable behavior. X learns the positive relationship between performance and rewards without actually obtaining the reward himself.LEARNING THEORIES Classical Conditioning The work of the famous Russian physiologist Ivan Pavlov demonstrated the classical conditioning process. Cognitive Learning Here the primary emphasis is on knowing how events and objects are related to each other. It is based on the principle that if a response is not reinforced. Pavlov subsequently introduced the sound of a bell each time the meat was given to the dog. Secondary reinforcers like job advancement. maintained and controlled by its consequences. Reinforcement is anything that both increases the strength of response and tends to induce repetitions of the behavior. extinction and punishment. As such it explains simple and reflexive behaviors. Operant conditioning is a powerful tool for managing people in organizations. In other words. recognition. Management can use the operant conditioning process successfully to control and influence the behavior of employees by manipulating its reward system. Operant conditioning. On the other hand. The learning of these complex behaviors can be explained or better understood by looking at operant conditioning. praise and esteem result from previous association with a primary reinforcer. Cognitive learning is important because it increases the change that the learner will do the right thing first. which arc independent of past experiences. Most of the learning that takes place in the classroom is cognitive learning. without going through a lengthy operant conditioning process. Classical conditioning has a limited value in the study of organizational behavior. positive reinforcement. operant behaviors. Operant conditioning is a voluntary behavior and it is determined. For instance. Extinction is a behavioral strategy that does not promote desirable behaviors but can help to reduce undesirable behaviors. It refers to non-reinforcement. The dog eventually learned to salivate in response to the ringing of the-bell-even when there was no meat. i. controlled and altered by the consequences. In order to apply reinforcement procedures successfully. He termed the food an unconditioned stimulus and the salivation an unconditioned response. Observational learning plays a crucial role in altering behaviors in organizations. identifiable event. a primary reinforcer like food satisfies hunger need and reinforced food-producing behavior. But behavior of people in organizations is emitted rather than elicited. Positive Reinforcement Positive reinforcement strengthens and increases behavior by the presentation of a desirable consequence (reward). viz. the dog did not salivate. X observes that Y is rewarded for superior performance. There are two typos of positive: reinforces: primary and secondary. Four types of reinforcement strategies can be employed by managers to influence the behavior of the employees.e. Something happens and we react in a specific or particular fashion. it salivated. when Pavlov merely rang a bell. classical conditioning represents an insignificant part of total human learning. a positive reinforce is a reward that follows behavior and is capable of increasing the frequency of that behavior. Punishment Punishment is a control device employed in organizations to discourage and reduce annoying behaviors of employees. As pointed out by Skinner. It is elicited in response to a specific.. Negative reinforcers also serve to strengthen desired behavior responses leading to their removal or termination. basically a product of Skinnerian psychology. negative reinforcement. It does not require an overt response. #27 . OBSERVATIONAL LEARNING Observational learning results from watching the behavior of another person and appraising the consequences of that behavior. When Mr. Classical conditioning is passive. water and sex are of biological importance and have effects. it will eventually disappear. When Pavlov presented a piece of meat to the dog in the experiment. Pavlov noticed a great deal of salivation.

LEARNING THEORY AND ORGANIZATIONAL BEHAVIOR The relevance of the learning theories for explaining and predicting of organizational behavior is marginal. by manipulating its reward system. This does not mean that learning theories are totally irrelevant. Learning theory can also provide certain guidelines for conditioning organizational behavior. When individuals engage in various types of dysfunctional behavior such as late for work. Learning concepts provide a basis for changing behaviors that are unacceptable and maintaining those behavior that are acceptable. disobeying orders. poor performance. Managers can successfully use the operant conditioning process to control and influence the behavior of employees. the manager will attempt to educate more functional behaviors. Managers know that individuals capable of giving superior performance must be given more reinforces than those with average or low performance. #28 .

#29 . you should be able to: • • • • • Explain the concept of attitude in organizations Understand the method of formation of attitude Discuss individual attitude in organizations and indicate their effect on behaviour Explain the concept of perception and perceptual process Describe perception attribution in organizations In simple words. COMPONENTS OF ATTITUDE Attitude has three components. situations or other people. The affective component of an attitude reflects 'feelings and emotions' that an individual has towards a situation. which prepares him to react or make him behave in a particular pre-determined way. an "attitude" may be explained as the mental state of an individual. An attitude is defined as. Attitude is important because it is the mechanism through which most people express their feelings. an "attitude" is an individual's point of view or an individual's way of looking at something. which supplies inferior products and that too irregularly could be described as follows: • • • "I don't like that company"—Affective component.LESSON – 8 LEARNING AND BEHAVIOUR MODIFICATION Learning Objectives After reading this lesson. "They are the worst supply firm I have ever dealt with"—Cognitive component. "a learned pre-disposition to respond in a consistently favourable or unfavorable manner with respect to a given object". Attitude is the combination of beliefs and feelings that people have about specific ideas. Finally. To be more explicit. "I will never do business with them again"'—Intentional component. The cognitive component of an attitude is derived from 'knowledge' that an individual has about a situation.1 shows the components of attitude. the intentional component of an attitude reflects how an individual 'expects to behave' towards or in the situation. the different components of an attitude held towards a firm. which are as follows: • Affective component • Cognitive component • Intentional component The figure 8. For example.

motion and novelty and familiarity. Similarly. and may keep continually looking for another job. There are a number of factors that lead to commitment and involvement. it is very essential for the efficient working of an organization. If the organization treats its employees fairly and provides reasonable rewards and job security. Organizational commitment is the individual's feeling of identification with and attachment to an organization. selectivity is affected by intensity. a manager may come to realise that he is actually very talented and subsequently may develop a more positive attitude toward him. they do and help supervisors in winning cooperation from them. An employee with little involvement is motivated by extrinsic motivational factor and an employee with strong involvement is motivated by intrinsic motivational factors. superiors. Involving employees in decision-making can also help to increase commitment. The conflict that individuals may experience among their own attitudes is called 'cognitive dissonance. perceptual selectivity is influenced by the individual's motivation. One of the very important ways to understand individual behaviour in an organization is that of studying attitude. fringe benefits.by his or her work. conflicting circumstances often arise. Involvement refers to a person's willingness to be a team member and work beyond the usual standards of the job. learning and personality. people make interpretations of the stimulus or situation they are faced with. attitudes provide knowledge base or prepare. makes positive contributions. However. Through this complex process. In contrast.factors such as an individual's needs and aspirations determine this attitude. it is generally recognized that the perceptual process is a very important one.People try to maintain consistency among the three components of their attitudes. promotion possibilities. designing jobs. ATTITUDE: IT’S IMPORTANCE IN ORGANIZATIONAL BEHAVIOUR Attitudes of both workers and management react to each other and determine mutual relationships. Externally. From a personal perspective. Extensive research conducted on job satisfaction has indicated that personal . can enhance job involvement. which is situationally specific and learned. Both selectivity and organization go 'into perceptual. uniform etc. contrast. #30 . Attitude is an understanding or learning of why employees feel and act the way. If employees are satisfied with their job. Internally. An attitude may change as a result of new information. and with the world around us. In particular. organizational commitment and job involvement. which are interesting and stimulating. This directly affects organizational behaviour. A satisfied employee also tends to be absent less often. Although there arc a number of cognitive processes. repetition. work policies and compensation. with his sense of job security and participation in decision-making. Perception Perception is an important mediating cognitive process. for our interaction with others. working conditions. interpretations. it may lead to low employee turnover and less absenteeism and vice-versa. So. along with group and organizational factors such as relationships with co-workers and supervisors. Especially some important attitudes are job satisfaction or dissatisfaction. size. Both may increase with an employee's age and years with the organization. and stays with the organization. It is a process that takes place between the situation and the behaviour and is most relevant to the study of organizational behaviour. ATTITUDE FORMATION AND CHANGE Individual attitude are formed over time as a result of repeated personal experiences with ideas. Job Satisfaction Job satisfaction is an attitude reflects the extent to which an individual is gratified or fulfilled . situations or people. After the selective process filters the stimulus situation. satisfaction depends on individual factors like individual's needs and aspirations. the incoming information is organized into a meaningful whole. Work-Related Attitudes People in an organization form attitude about many things such as about their salary. Group factors such as relationship with co-workers and supervisors also influence job.satisfaction. food in the canteen. After working with a new person. Organizational factors that influence employee satisfaction include pay. policies and procedures of the organizations and working conditions. the observation that a department head and a subordinate may react quite differently to the same top management directive can be better understood and explained by the perceptual process. a dissatisfied employee may be absent more often may experience stress that disrupts coworkers. and in turn organizational working. promotion. employees are more likely to be satisfied and committed. For example. our mental state. Individual differences and uniqueness are largely the result of the cognitive processes. A manager may have a negative attitude about a new employee because of his lack of job-related experience. Organizational Commitment and Involvement Two other important work-related attitudes arc organizational commitment and involvement.

Thus. PERCEPTION AND ATTRIBUTION Perception is also closely linked with another process called attribution. Hence. For example. repetition and novelty. Perception plays a key role in determining individual behaviour in organizations. it can become quite detrimental. He might realize that this employee is the only one whois laic (low consensus). intensity. The processes through which a person's perceptions are altered by the situation include selection. The details of a particular situation affect the way a person perceives an object. perceived as a clerk and not an executive at first. recall that he is often late for other meetings (high consistency). selective perception and stereotyping are particularly relevant to organizations. Basic Perceptual Process Perception is influenced by characteristics of the object being perceived. impression management has considerable' implications for activities like determining the validity of #31 . Organizations send messages in a variety of forms to their members regarding what they are expected to do and not to do. Selective perception may make the manager to quickly disregard what he observed. the manager might meet the subordinate to establish some disciplinary consequences to avoid future delays. This pattern of attributions might cause the manager to decide that the individual's behaviour requires a change. by the characteristics of the person and by the situational processes. organization. Distinctiveness is the extent to which the same person behaves in the same way in other situations. For example. Attribution is a mechanism through which we observe behaviour and then attribute certain causes to it. a manager who has formed a very negative attitude about a particular worker and he happens to observe a high performance from the same worker. impression management is the process by which the general people attempt to manage or control the perceptions that others form about them. The forces within the person (internal) or outside the person (external) lead to the behaviour. a manager has a very positive attitude about a particular worker and one day he notices that the worker seems to be goofing up. • Characteristics of the object include contrast. In this case influenced by the selective perception process he too will disregard it. stereotyping process. assimilate them and then interpret them. Selective Perception Selective perception is the process of screening out information that we are uncomfortable with or that contradicts our beliefs. if you observe that an employee is much more motivated than the people around (low consensus). and subsequently recall that the same employee is sometimes late for work (low distinctiveness). Typically. Consistency is the degree to which the same person behaves in the same way at different times. Another example is of a manager who observes that an employee is late for a meeting. once we observe behaviour we evaluate it in terms of its consensus. Among these. Stereotyping consists of three steps: identifying categories of people (like women.In the process of perception. and seems to work hard no matter what the task (low distinctiveness) you might conclude that internal factors are causing that particular behaviour. she will be very often. managers need to have a general understanding of the basic perceptual process. if a woman is sitting behind the table in the office. self-concept and personality. Conversely. Stereotyping Stereotyping is the process of categorizing or labeling people on the basis of a single attribute. In one sense. • Characteristics of the person include attitude. dishonesty respectively) and then assuming that any one who fits a certain category must have those characteristics. Different people perceive the same information differently. selective perception is beneficial because it allows us to disregard minor bits of information. is consistently motivated (high consistency). Perceptions based on stereotypes about people's sex exist more or less in all work places. these perceptions lead to the belief that an individual's sex determines which tasks he or she will be able to perform. Consensus is the extent to which other people in the same situation behave in the same way. For example. In spite of organizations sending clear messages. consistency and distinctiveness. attribution. For instance. But it would induce holding an exactly opposite assumption about a man. According to Attribution theory. IMPRESSION MANAGEMENT Social perception is concerned with how one individual perceives other individuals. For example. associating certain characteristics with those categories (like passivity. if dishonesty is associated with politicians. movement. the same person may perceive the same object very differently in different situations. politician). People often tend to present themselves in such a way so as to impress others in a socially desirable manner. and the halo effect process. projection. At this point. people receive many different kinds of information through all five senses. those messages are subject to distortion in the process of being perceived by organizational members. But if selective perception causes managers to ignore important information. we are likely to assume that all politicians are dishonest.

target values and current social image. Employees using this approach try to disassociate themselves from the group and from the problem. • Employees secretly tell their boss that they fought for the right thing. physical status. The degree of this motivation to manage impression will depend on factors like the relevance that these impressions have on the individual's goals. but were overruled. subordinates may be.impression motivation and impression construction. two separate components of impression management have been identified . attributions and social facilitation. the differences between individuals. the other major process. Employee Impression Management Strategies There are two basic strategies of impression management that employees can use. motivated to control how their boss perceives them. attitude change. The promotion enhancing strategies involve the following activities: • Employees harbor a feeling that they have not been given credit for a positive outcome. the discrepancy between the image one would like others to hold and the image one believes others already hold. Most recently. is concerned with the specific type of impression people want to make and how they create it. perceptions and attributions. On the other hand. if they are seeking to maximize responsibility for a positive outcome or to look better than what they really are. the value of these goals. • Employees ascertain that they are seen with the right people at the right times. Although there has been a considerable research done on how these five factors influence the type of impression that people try to make. then they lean use a promotion-enhancing strategy. impression management has many possible conceptual dimensions arid has been researched in relation to aggression. Successful managers constantly monitor their own assumptions. trying to treat each individual as a unique person #32 . political tool for someone to climb the ladder of success in organizations. desired and undesired identity images. role constraints. Managers must never underestimate. but received a lesser credit. It serves as a pragmatic. • Employees point out that they did more. If employees are trying to minimize responsibility for some negative event or to stay out of trouble. Impression construction. • Employees identify cither personal or organizational obstacles they had to overcome to accomplish an outcome and expect a higher credit. five factors have been identified as being especially relevant to the] kinds of impression people try to construct: the self-concept. Using this broader approach. however. there is still little known of how they select the way to manage others' perceptions of them.performance appraisals. or values. • Employees apologies to the boss for some negative event. interests. Coping with Individual Differences Individual differences and people's perception of them affect every aspect of behaviour in organizations. The Process of Impression Management As with other cognitive processes. among other things. they may employ a demotion-preventative strategy. Although some theorists limit the type of impression only to personal characteristics others include such things as attitudes. The demotion-preventative strategy is characterized by the following activities: • Employees attempt to excuse or justify their actions. Especially in an employment situation.

use of force etc. Terry. IMPORTANCE OF MOTIVATION Motivation is an important part of managing process. which forces him to work more efficiently. • Motivated employees make full use of their energy and other abilities to raise the existing level of efficiency. These 'others' are human resources who need to be motivated to attain organizational objectives. which activates and compels the person to behave in a particular manner. • The motivation procedure contributes to and boosts up the morale of the employees. • Motivation is also a process of stimulating and channelising the energy of an individual for achieving set goals. nature and importance of motivation Explain need-based theories of motivation Discuss expectancy theory of motivation Explain ways of enhancing employee motivation The word motivation is derived from ‘motive'. • It is a continuous activity. causing the individual to move in a goal directed pattern towards restoring a state of equilibrium. you should be able to: • • • • Understand the meaning. • It may be positive or negative. Highly motivated employees get higher satisfaction. "Motivation is the desire within an individual that stimulates him or her to action. Viteles defines motivation as "an unsatisfied need which creates a state of tension or disequilibrium. • The process of Motivation helps the manager in analysing and understanding human behavior and finding but how an individual can be inspired to produce desirable working behavior." In the words of Robert Dubin. may differ from individual to individual depending on his personality. rewards and other benefits while negative motivation implies some punishment. • Motivating force an^ its degree. • A highly motivated employee works more efficiently and his level of production tends to be higher than others. Positive motivation includes incentives. • Motivation also plays a crucial role in determining the level of performance. Motivation is the key to organizational effectiveness. • Motivation is directly related to the level of efficiency of employees. • The motivation process is influenced by personality traits. perception and competence of an individual. craving or need that must be satisfied. • It varies from person to person and from time to time. needs. learning abilities." On the basis of above definitions. "Motivation refers to the degree of readiness of an organism to pursue some designated goals and implies the determination of the nature and locus of force inducing a degree of readiness. DEFINITION According to George R. FEATURES OF MOTIVATION The following are the features of motivation: • It is an internal feeling and forces a person to action. The manager in general has to get the work done through others. fear. which may lead to higher efficiency. it is "the complex of forces starting and keeping a person at work in an organization". #33 . the following observations can be made regarding motivation: • Motivation is an inner psychological force." According to Encyclopaedia of Management. A high degree of motivation may lead to high morale. • Motivation originates from the-needs and wants of an individual. A team of highly qualified and motivated employees is necessary for achieving objectives of an organization because of the following reasons: • Motivated employees make optimum use of available resources for achieving objectives.LESSON – 9 MOTIVATION AND BEHAVIOR Learning Objectives After reading this lesson. by satisfying the need. • Motivation may be positive as well as negative. competence and other factors. It is a tension of lacking something in his mind. which means an active form of a desire.

Physiological needs represent the basic issues of survival such as food. the cycle of motivation is constantly repeated. NEED-BASED THEORIES TO MOTIVATION Need-based theories try to answer the question. working harder while simultaneously looking for a job. Motivation is considered as a backbone of good industrial relations. This 'moving up process continues until the individual reaches the self-actualization level. An individual is motivated first and foremost to satisfy physiological needs. the need to be free from worry about money and job security and the desire for safe working conditions. Belonging or social needs are related to the. "what factor(s) motivate people to choose certain behaviors?" Some of the widely known need-based theories are as follows: (a) Maslow's Hierarchy of Needs Maslow Abraham proposed his theory in the 1940s. social scientists. a grievance resolving system and an adequate insurance and retirement benefit package. which provides employees with rest rooms. This theory. This includes managers. security. Extensive research has been performed to find out what makes people work and how to motivate them. In organizational settings. The motivation process begins with identification of individual needs. Motivation also helps in improving the image of an organization. Since people have many different needs. sex. even though there is no universally acceptable motivation theory.• • • • • Motivated employees make goal-directed efforts. If his hard work resulted in a pay rise. Security needs are satisfied for people in the work place by job continuity. But if no raise has been provided he is likely to try another option. Effectively motivated employees get more job satisfaction and possess high morale. starting from the bottom of the hierarchy. popularly known as the Hierarchy of Needs assumes that people are motivated to satisfy five levels of needs: physiological. water and air. Examples include the desire for adequate housing and clothing. belongingness. he is motivated and 'moves up' the hierarchy to satisfy security needs. For example. For most people these needs are satisfied by a combination of #34 . He then chooses to pursue one or more of these options for instance. social aspect of human life. When these needs are satisfied. adequate lighting. behaviorists and psychologists. when an employee feels underpaid then what. esteem and selfactualization needs. They are more committed and cooperative for achieving organizational objectives. most physiological needs are satisfied by adequate wages and by the work environment itself. Thus. They include the need for love and affection and the need to be accepted by one's peers. A number of theories have been developed. the satisfaction of one need or set of needs is likely to give rise to the identification of other needs. Security or safety needs refer to the requirements for a secure physical and emotional environment. The figure 9. he probably feels satisfied and will continue to work hard. These factors help reduce absenteeism and labor turnover. then he tries to fulfill his needs by asking for a raise or by working harder to earn a raise or by seeking a new job. Motivated employees are more loyal and sincere to an organization.1 shows Maslow's hierarchy of needs Maslow suggested that the five levels of needs are arranged in accordance with their importance. comfortable temperatures and ventilation. Understanding human motivation is crucial for managing people. Understanding these theories facilitates the managers to get a better insight into the human behavior.

an organization can help in fulfillment of these needs by encouraging employee’s participation in decision-making process and by providing them with an opportunity to learn new things about their jobs and organization. Organizations can help address esteem needs by providing a variety of external symbols of accomplishment such as job titles and spacious offices. Since these needs are highly individualized and personal. Relatedness and Growth. At the top of the hierarchy are those needs. This process of contributing to actual organizational performance helps employees experience personal growth and development associated with self-actualizing. self-actualization needs are perhaps the most difficult for managers to address. Therefore. #35 .2 shows ERG theory: ERG Theory the need hierarchy developed by Maslow into three 9. For instance. But research has revealed several shortcomings of the theory such as some research has found that five levels of needs are not always present and that the order of the levels is not always the same as assumed by Maslow. Moreover. Although ERG Theory assumes that motivated behavior follows a hierarchy in somewhat the same fashion as suggested by Maslow. ERG theory suggests that more than one kind of need might motivate a person at the same time. Managers can help ensure the 'satisfaction of these important needs by allowing social interaction and by making employees feel like part of a team or work group.2. • Firstly. R and G stand for Existence. Maslow's concept of the need hierarchy possesses a certain intuitive logic and has been accepted universally by managers. • The need for recognition and respect from others. Relatedness needs refers to belongingness and esteem needs. However. organizations can also help satisfy esteem needs by providing employees with challenging job assignments that can induce a sense of accomplishment. At a more fundamental level. The existence needs in this theory refers to the physiological and security needs of Maslow. which Maslow defines the self-actualization needs. The letters E.family and community relationships and friendships on the job. For example. Growth needs refers to both self-esteem and self-actualization needs. The figure 9. (b) ERG Theory of Motivation Clayton Alderfer has proposed an alternative hierarchy of needs . and an opportunity to learn new skills (growth) all at the same time. it allows for the possibility that people can be motivated by a desire for money (existence). an employee should try to meet these needs on his own end. Esteem needs actually comprise of two different sets of needs: • The need for a positive self-image and self-respect.called the ERG Theory of Motivation. it is difficult for organizations to use the need hierarchy to enhance employee motivation. an organization can help his employee by creating a climate for fulfillment of self-actualization needs. friendship (relatedness). there are two important differences. These needs involve realizing one's potential for continued: growth and individual development.

The ERG theory emphasis on the following key points regarding needs: o Some needs may be more important than others. o People may change their behavior after any particular set of needs has been satisfied. regress to a lower level and will begin to pursue low level needs again. an individual who identified 'low pay' as causing dissatisfaction did not necessarily mention 'high pay' as a cause of satisfaction. Herzberg recommended that managers seeking to motivate employees should first make sure that hygiene factors are taken care of and that employees are not dissatisfied with pay. Herzberg argued that attitudes and motivation consists of a dual structure. a worker previously motivated by money (existence needs) is awarded a pay rise to satisfy this needs. from security needs to belongingness. Then he attempts to establish more friendship to satisfy relatedness needs. dissatisfied or somewhere in between. by improving opportunities for advancement. One structure involves a set of factors that result in feelings ranging from satisfaction to no satisfaction. he may eventually become frustrated and regress to being motivated to earn even more money. #36 . security and working conditions. for example. If for some reason an employee finds that it is impossible to become better friends with others in the work place. He asked them to recall such occasions when they had been dissatisfied and less motivated. Instead. The factors influencing satisfaction are called motivation factors or motivators. several other factors. the individual will become frustrated. Employees would.• Secondly. This is termed as ‘frustration-regression' process. such as recognition or accomplishment. Herzberg developed this approach after interviewing 200 accountants and engineers in Pittsburg. Specifically. Herzberg identified two sets of factors responsible for causing either satisfaction or dissatisfaction. Once a manager has eliminated employee dissatisfaction. which are related specifically to the job itself and the factors causing dissatisfaction are called hygiene factors. Motivators • Achievement • Recognition • Advancement • The work itself • The possibility of personal growth • Responsibility Hygiene or Maintenance Factors • Company policies • Technical supervision • Interpersonal relations with supervisor • Interpersonal relations with peers • Interpersonal relations with subordinates • Salary • Job security • Personal life • Work conditions • Status Based on these findings. ERG theory has an element of frustrations-regression that is missing from Maslow's need hierarchy. be satisfied. For instance. which are related to the work environment in which the job is performed. were cited as causing satisfaction. Although the ERG theory includes this process. This is also known as Two-factor Theory. Maslow maintained that one heed must be satisfied before an individual can progress to needs at a higher level. He found that entirely different sets of factors were associated with satisfaction and dissatisfaction. (c) The Dual-Structure Approach to Motivation Another popular need-based approach to motivation is the dual-structure approach developed by Frederick Herzberg. For" example. therefore. Hertzberg recommends focusing on a different set of factors to increase motivation. recognition. it also suggests that if needs remain unsatisfied at some higher level. advancement and growth. This is termed as satisfaction—progression process. he recommends job enrichment as a means of enhancing the availability of motivation factors. The other structure involves a set of factors that result in feelings ranging from dissatisfaction to no satisfaction. This finding suggests that satisfaction and dissatisfaction are at opposite ends of a single scale.

I Theory of X Following are the assumptions of managers who believe in the "Theory of X" regarding their employees. secures the commitment of employees to organizational objectives. • Employees avoid responsibilities and seek formal direction. • Employees must be coerced. This motivational theory places emphasis on satisfaction of employees. These needs have been classified as: 1. this theory of behavior is related to organizations that lay hard and rigid standards of work-behavior. Hence. • Employees accept and seek responsibilities. as an instrument of command and control is minimal. design equipment to control worker's pace of work. one is negative called "Theory of X" and another is positive called "Theory of Y". Organization should keep in mind that once theory 'X' is employed for organizational working. places exclusive reliance upon external control of human behavior. MC-CLELLAND's NEED THEORY OF MOTIVATION David C. McGregor supports the applicability of motivational theory 'Y'. had a major impact on managers and has played a key role in increasing their awareness of motivation and its importance in type work place. The concepts of 'Job' Enlargement'. Some examples of such organizations are organizations that break down jobs into specialized elements. relies heavily on self-control -and self-direction. • Innovative spirit is not confined to managers alone. They have also criticized Herzberg's theory for its inability to define the relationship between satisfaction and motivation and to pay enough attention to differences between individuals. most important of all other factors in the job and have very little ambition. have rigid rules and regulations. at present Herzberg's theory is not held in high esteem by researchers in the field of motivation. Theory of Y Following are the assumptions of managers who believe in the "Theory of Y" regarding their employees. 'Participation' and 'Management by Objectives' are quite consistent with theory ' Y'. Other researchers who measured satisfaction and dissatisfaction based on different aspects reached very different conclusions. Theory 'Y’.Although widely accepted by managers. that are sometimes very vigorously enforced. some employees also possess it. all of a sudden. instead of theory ‘X'. while theory 'Y'. • Employees dislike work. judicious and slow steps. McClelland and his associate Atkinson have contributed to an understanding of motivation by identifying three types of basic motivating needs. which might be defined as the desire to be influential in a group and to control one's environment is an important motivation factor. The theory. Need for Power 2. • Most employees consider security of job. • Employees are self-directed and self-controlled and committed to the organizational objectives. Research suggests that people with a strong need for #37 . Need for Affiliation 3. however. Hertzberg’s dual structure approach however suffers from certain drawbacks. Theory 'X' points to the traditional approach of management. it is difficult for the management to shift to theory ' Y'. establish 'norms of production. Literally. the use of authority. • Employees love work as play or rest. However. Need for Achievement : : Need for Power According to this theory the need for power. with systematic. While applying this theory. controlled or threatened to do the work. Applicability of Theories 'X' and 'Y' Theory 'X' in its applicability. Employees exercise self-direction and self-control. shifting in the practical applicability of theory 'X' to theory ' Y' usually can be achieved. on the other hand. 'X' AND ‘Y' THEORIES OF MOTIVATION Douglas McGregor observed two diametrically opposing viewpoints of managers 'about their employees.

they explain what are the causes leading to motivated behaviors. The theory suggests that motivation depends on two things: how much an individual desires a particular goal and how likely he thinks he can get it. Basically. These questions relate to behaviors or actions.for themselves. in an effort to maintain friendship. They focus on why people choose to enact certain behavioral options to fulfill their needs and how they evaluate their satisfaction after they have attained these goals. Even though he might want the job.3 shows the expectancy theory of motivation. a person is looking for a job and reads an advertisement for a position of Marketing Executive with a starting salary of Rs. Need for Affiliation The need for affiliation means the desire for human companionship and acceptance. are outspoken. Two of the most useful process-based approaches to motivation arc expectancy theory and equity theory. They do not explain why or how motivated behavior occurs.Victor Vroom. Next he sees an advertisement is for Field Supervisor for a salary of Re. he probably does not apply because he is aware that there is little chance of getting it. They prefer a job that entails a good deal of social interaction and offers opportunities to make friends. Then he comes across another advertisement for a Management Trainee in a big organization with a starting salary of Rs. PROCESS-BASED THEORIES TO MOTIVATION The field of organizational behavior has generally moved a way from the needs theories of motivation. they act effectively. 2 lakh per year. (a) Expectancy Theory of Motivation Expectancy theory of motivation was developed by. #38 . Need for Achievement People with a high need for achievement. He chooses to apply for this job because he wants it and also thinks that he has a reasonable chance of getting it. friendly. • Leadership qualities. The principal characteristics of such peoples' traits are as follows: • Desire to like and be liked.can probably get the job. Process-based theories to motivation are concerned with how motivation occurs. This need is closely associated with the "social-type” of personality. are ever prepared to face challenging situations and set arduous goals .that is. These concepts are addressed by various process-based theories to motivation.power. Persons with high motivation for power and affiliation have better chances of becoming good managers. have a stubborn character and exert authority. who are sociable.process of governing choices. 3 lakh per year. In this case he realizes that he . These people are concerned with their progress. They are prone to take calculated risks. The expectancy theory tries to explain how and why people choose a particular behavior over an alternative. cooperative and understanding. and feel inclined to put in longer hours of work" Failures never dishearten them and they are always ready to put in their best efforts for excellent performance. • Prefer cooperative situation. and possess a high sense of personal responsibility in getting jobs done. Needs theories are content-oriented . • Enjoy company and friendship.. For instance. • Excel in group task. 1 lakh per year. but still doesn't apply simply because he doesn't want it. goals and feelings of satisfaction. always feel ambitious to be successful. Figure 9. Vroom's expectancy theory views motivation as a. are likely to be superior performers and occupy supervisory positions. Those with a high need for affiliation often behave the way they think other people want them to. • Star attraction in gathering. Such types of individuals generally look for positions of leadership.

Performance. A high performer. The above model suggests that motivation leads to efforts and that effort.00. in turn. when combined with individual ability and environmental factors. an individual who believes that high performance will lead to a pay raise has a high performance-to-outcome expectancy. However. #39 . When an individual believes that effort and performance are unrelated.00. result in performance. for example. then his effort-to-performance expectancy is high.The expectancy theory rests on four assumptions: • The theory assumes that behavior is determined by a combination of forces in the individual and in the environment.0. he may also be subject to a lot of stress and incur resentment from co-workers.0. an index of how much an individual desires a particular outcome. An individual who believes that high performance may possibly lead to a pay raise has a moderate expectancy between 1. If an individual is indifferent to an outcome. According to this model. It is this advantage of expectancy theory that goes beyond the need-based approaches to motivation. individuals develop some sense of these expectations before they exhibit motivated or non-motivated behavior. may get big pay raises.00 and 0. Each of these outcomes has an associated value or valence that is. leads to various outcomes—each of which has an associated value called its 'valence'. • It assumes that people make choices from among alternative plans of behavior based on their perceptions of the extent to which a given behavior will lead to desired outcomes. When an individual believes that effort will lead directly to high performance. that is close to 1. its valence is positive. For example. Effort-to-Performance Expectancy The effort-to-performance expectancy refers to an individual's perception of the probability that effort will result in high performance. if one feels sure that studying hard for an examination (effort) will result in scoring high marks (performance). fast promotions and praise from the boss. • It assumes that people make decisions about their own behavior in organizations. .0 with a moderate expectancy. expectancy is quite strong. Outcomes and Valences Expectancy theory recognizes that an individual may experience a variety of outcomes as a consequence. Performance-to-Outcome Expectancy The performance-to-outcome expectancy means an individual's perception of the probability that performance will result in a specific outcome. desires and goals. And an individual who believes that performance has no relationship to rewards has a low performance-to-outcome expectancy that is close to 0. of behavior in an organizational environment. its valence is zero. If an individual does not want an outcome. the effort-to-performance expectancy is very weak. that is close to 0. its valence is negative.0 and 1.. that is close to 1. • It assumes that different people have different types of needs. For instance. so they fall somewhere between 0. If an individual wants an outcome. approaching to 1. Usually we are not sure about our expectations.

Another important point. It is quite difficult to apply. that is. the sum of the valences for all relevant outcomes must be greater than zero. 7. In conclusion. few people actually make decisions in such a precise and rational manner. The manager will particularly see that the specific system.therefore. then he has to make sure whether the reward system is highly supportive to hard work or high quality. Nadler and Lawler suggest a series of steps for managers in applying the basic ideas of the theory. the effort-to-performance expectancy must be greater than zero. the performance-to-outcome expectancy must also be greater than zero. The managers can perform the following activities in relation to this • Determine what outcomes employees prefer. The human relationists assumed that employee satisfaction causes good performance but research has not supported such relationship. • Establish attainable performance goals. so as to make them feel confident that their energized efforts will be rewarded. They should ensure that desired outcomes and performance are linked. 6. However. The model also distinguishes between intrinsic and extrinsic rewards. The Porter-Lawer Extension Porter and Lawler have proposed an interesting extension to the expectancy theory. an individual's initial effort is influenced by his perception regarding the value of reward and the likelihood that the effort will yield a reward. application of this theory in the work place would require to identify all the potential outcomes for each employee. Porter-Lawler Model First. which managers should keep in mind. Implications for Managers Expectancy theory can be useful for organizations attempting to improve the motivation of their employees. 4. the individual is motivated to expand effort. • Third. Expectancy theory also assumes that people are rational . The probability that increased effort will lead to improved performance is affected by an individual's traits. #40 . They should determine the primary outcomes that each employee likely desires. to determine all relevant expectancies and then to balance everything somehow to maximize employee motivation. They should decide what kind and levels of performance are needed to meet organizational goals. The expectancy theory also has several other important practical implications. three conditions must be met. Porter and Lawler suggest that there may indeed be a relationship between satisfaction and performance but that it goes in the opposite direction. • Define. abilities and perception of his role in an organization. they will systematically consider all the potential outcomes and their associated expectancies before selecting a particular behavior.Thus. 5. no doubt 'expectancy' theory has gained much popularity with theorists. They should also analyze the complete work situation for conflicting expectancies. They should ascertain that the desired levels of performance are attainable. 2. is communicated to them. • Link desired outcomes to performance goal achievement. communicate and clarify the level of performance that is desired. is that rewards must correspond to the varying preferences of an individual employee. • Second. superior performance can lead to satisfaction. which should not be ignored by the manger. Finally. The expectancy theory has also its limitations. 1. which are as follows: • First. for example. Expectancy theory maintains that when all of these conditions are met. They should make sure that the rewards are large enough. for motivated behavior to occur on the part of any individual. as applicable in their case. 3. before it can be accepted for use as an effective instrument of explanation of 'motivation' with all its implications. They should make sure that the overall system is equitable for everyone. but much more work still needs to be put in. Practical Applicability of Expectancy Theory If a manager wishes to motivate his employees for increased and better performance. the Porter-Lawler model borrows from equity theory the idea that the employee's satisfaction depends on the perceived equity of the rewards relative to the 'effort expended and the level of performance attained.

• Over-rewarded. Other positive reinforces include pay. Equity can be defined as an individual's belief that he is being treated fairly relative to the treatment of others. • Under-rewarded. When a manager' observes an employee is doing a good job and offers praise then this praise helps in positive reinforcement of behavior. the laughter reinforces the behavior and the employee may continue #41 . the best way to avoid such problems is to make all employees aware of the basis for rewards. 4. The other reinforcement. There arc similarities between expectancy theory and reinforcement theory. Reinforcement-based approaches explain the role of those rewards as they cause behavior to change or remain the same over time.4 shows the equity process. The equity theory argues that motivations arise out of simple desire to be treated fairly. However. avoidance. effort. Outcomes are what an individual receives from an organization such as. Reinforcement Based Approaches to Motivation A final approach to the motivation process focuses on why some behavior are maintained and changed overtime. managers must remember that different employees have different sense towards basis for a reward and this may result in problems. The single most important idea for managers to remember about equity theory is that if rewards are to motivate employees. promotions and awards. Stacy Adams developed equity theory of motivation. However. consequence will reduce an undesirable behavior again. recognition and social relationships. This other 'person' may be someone in the work group. 3. In the crucial step of equity theory an individual 'compares' the two treatments. reinforcement theory is based on the fairly simple assumption that behaviors that result in rewarding consequences are likely to be repeated. education. Adam suggests that employees make these comparisons by focusing on input and outcome ratios. experience and loyalty. When an employee tells a vulgar joke and the boss laughs. the expectancy theory focuses more on behavior choices and the latter is more concerned with the consequences of those choices. This occurs when an individual chooses certain behavior in order to avoid unpleasant consequences. for example. If an individual has the feeling of equity then he should maintain the status quo. punishment and extinction. The comparison may result in three types of attitudes: • The individual may feel equitably rewarded. Punishment is used by some managers to weaken undesired behaviors. An individual will experience a feeling of equity when the two ratios are equal. whereas behavior that results in punishing consequences are less likely to be repeated.(b) Equity Theory J. The figure 9. The theory suggests that people view their outcomes and inputs as ratio and then. Reinforcement Contingencies Reinforcement contingencies are the possible outcomes that an individual may experience as a result of his or her behaviors. punishing with fine for coming late. If he has a feeling of inequity then he is likely to change the input. It is a reward or a positive outcome after a desired behavior is performed. Both consider the processes by which an individual chooses behaviors in a particular situation. For instance. A person's perception of equity develops through a four-step process as shown below: 1. Hence. The logic is that the unpleasant. An employee's contributions or input to an organization include time. contingency that can strengthen desired behavior is avoidance.compare their ratio to the ratio of someone else. Specifically. they must be perceived as being equitable and^ fair. pay. In the fourth step he evaluate a sense of equity to see if the two treatments seem similar or if the are different. Positive Reinforcement is a method of strengthening behavior. The next step is for an individual to choose a co-worker who seems to be in a roughly similar situation and to observe how an organization treats him. specially that has previously been rewarded. First an individual evaluates the way he is being treated by an organization. The four types of reinforcement contingencies that can affect individuals in an organizational setting are positive reinforcement. an employee may come to work on time to avoid criticism. 2. Extinction can also be used to weaken behavior.

Goal Specificity Goals must be stated in specific terms if they are to motivate effective performance. By simply ignoring this behavior and not reinforcing it. • Participation of employees in goal has mixed result. In fact. Two of the most promising are Goal-Setting Theory and the Japanese Approach. however. These goals should be moderately difficult and very specific and of type that an employee will accept and make a commitment to accomplishing them. #42 . In other words.to tell similar jokes. • Participation of setting goal. The more difficult. o By assigning various rewards to the achievement of goals. However. Besides this. Most managers prefer a judicious use of positive reinforcement and punishment. number of units produced. employees see how their effort will lead to performance. a goal must be internalized by an individual. as suggested by MBO. o By demonstrating a supportive attitude and approach toward his subordinates . Positive reinforcement and punishment are the most common reinforcement contingencies practiced by organizations. Goals must be set in terms of measurable criteria of work performance. Goal-setting theory suggests that managers and subordinates should set goals for an individual on a regular basis.e. The mere act of goal setting does not ensure higher levels of motivation among employees. Goal Acceptance In order to influence motivation and performance. the person has to feel some personal ownership of the goal and must have commitment to achieve it. goal difficulty and goal acceptance. Goal Difficulty/Challenge There exists a relationship between goal difficulty and work motivation. • Difficult goals result higher performance than easy job. • It increases performance. the boss can cause the behavior to subside which eventually becomes 'extinct'. the higher the level of motivation and performance. (a) Goal-Setting Theory This approach to motivation has been pioneered in the USA by Edwin Locke and his associates in 1960s and refined in 1980s. there are a number of issues that arise in implementing goal setting in practice. i. Goal Setting in Practice The most obvious implication of goal-setting theory is that managers should be helping subordinates to set goals that are specific and reasonably difficult so that subordinates accept and internalize them as their own goals. Salient features of this theory are as follows: • Specific goal fixes the needs of resources and efforts.and challenging the goal is. it should not affect in identifying meaningful and valid objective of goal attainment. • Goal setting theory has defined two factors. These are given below: o Goal commitment o Self-efficiency. When involved in goal-settings. rewards and personal satisfaction. • Better feedback of results leads to better performances than lack of feedback. and must specify a lime period within which the goal is to be attained. They are goal specificity. NEW APPROACHES TO MOTIVATION IN ORGANIZATIONS New approaches are emerging to supplement the established models and theories of motivation. It also gives a sense of personal satisfaction and accomplishment to workers if he is able to meet the specific goal. • The manager can stimulate goal acceptance in at least three ways: o By involving subordinates in goal-setting process.' which influences the performance. increases acceptance of goal and involvements. new sales etc. it is essential that goals are set at realistic levels.. • Though specificity of goal is essential and measurability is desirable. there seem to be three important criteria that goals must meet if they are to influence the behavior of organization members. Goals that are very difficult to achieve are unable to motivate since it is beyond the capacity of the concerned individual. Rewards should be tied directly to accomplished goals. Avoidance and extinction are generally used only in specialized circumstances.

This proposal is called cognitive Evaluation Theory" which has been supported by a large number of research studies conducted subsequently. Certain attempts are made in USA and elsewhere. however. The organization can enhance motivation in following ways: • Humanize the work environment: Respect the need to treat each employee as an individual.Management by Objectives (MBO) is a managerial technique for improving motivation and performance using goal-setting principles. • Use incentive programs: Inducing the feeling that 'if you're creative enough. • Don't whitewash unpleasant assignments: Prepare subordinates for unpleasant assignments well in advance and offer what support you can. The basic tenet of the Japanese approach is that managers and workers should perform together as partners. Integration of Motivation Theories Thus several theories complicate our understanding. • Be liberal with praise: It's almost impossible to over praise and easy to under praise. They may in practice adopt specific interventions derived from one or more theories or they may influence motivation through the organization's reward system. Managerial Approaches for Improving Motivation A number of approaches can help managers motivate workers. of course. #43 .' • Establish appropriate deadlines: Every project should have a deadline. Pay and Job Performance Pay often can be used to motivate employee performance. But a pay plan also must be able to do the following tasks: • Create the belief that good performance leads to high levels of pay. (b) Japanese Approach to Motivation The Japanese approach to motivation has gained increasing popularity around the world during the past few years. Enhancing Motivation in Organizations Managers trying to enhance the motivation of their employees can. have been especially effective: linking pay to jot performance and quality of work-life programs. instead everyone is a team member. which has an intrinsicmotivation content. Since both of them see themselves as one group. • Admit mistakes: People will respect you for it and will be less likely to hide their own mistakes. draw on any of the theories described above. you won't have to rely on expensive financial bonuses. Like goal-setting meow. • Promote from within: It's great for morale and simplifies hiring procedures. Cognitive Evaluation Theory A researcher 'Charms' reported in 1960 that extrinsic motivation like pay or rewards for a job. • Show a personal interest in the people who work for you: Relations are always smoother between people who know each other on a personal basis than relations between people who merely want something from each other. It tends to decrease overall level of motivation. No one is called an employee. • Be consistent in your own work and in your relations with others. • Publicize both short and long-term organizational goals: Encourage personal and departmental goal setting. the Japanese approach is likely to become more common in businesses throughout the world. Two approaches. which is prior to such rewards. team leader or coach and everyone owns the 'share' of an organization. to perform more effectively. The following steps promote intrinsic motivation: • Workers Participation in Management (WPM) • Management by Objectives (MBO) • Organization Behavior Modification • Job-Redesign • Alternative Work Schedules. This approach is rather a philosophy of management than a theory or model. ail members are committed and motivated to work in the best interests of an organization. The real challenge that a researcher has to face is integration of all or at least some of these together so that their inter and intra-relationships are established. Some of these theories are compatible and some are not. This will also improve the understanding of motivation.

which are as follows: Quality Circles Quality Circles (QC) are small groups of workers who meet regularly with their supervisor as their 'circle leader' to solve work-related problems. QCs give an employee an opportunity for involvement. social-need satisfaction. It also provides an opportunity to fulfil several needs simultaneously. participation in work improvement and challenge and opportunity for growth. in essence. Alternative Work Schedule Organizations also frequently use the modified 'work-week' as a way to increase employee motivation. Expectancy theory helps explain the role of work design in motivation. job enlargement. greater worker involvement and higher levels of job satisfaction. vehicles for providing employees with opportunities to satisfy lower and upper-level needs as stated by Maslow. Programs for QWL improvements range from those requiring minor changes in an organization to those requiring extensive modifications in structure. personnel and the utilization of resources. through the motivators described in 'Herzberg's theory. There are three types of QWL programs. job enrichment as part of motivational programme. The modified 'work-week' helps individual satisfy higher-level needs by providing more personal control over one's work schedule.• • Minimize the negative consequences of good performance. and Create conditions in which rewards other than pay are evaluated as related to good performance. They are. A modified 'work-week' can be any work schedule that does not conform to a traditional 8 hours a day or 5 days a week format. Job-Redesign Job-Redesign or changing the nature of people's job is also being used more as a motivational technique. Quality of Work Life Programs Quality of Work Life (QWL) is defined as an attempt through a formal program to integrate employee needs and well being with the intention of improved productivity. #44 . The idea pursued here is that mangers can use any of the alternatives job rotation.

towards related factors and towards life in general. The second approach is the 'social information processing model'. sex. Where skill exists to a considerable degree it tends to become the main source of satisfaction to the employee. Besides. Basically.LESSON – 10 JOB SATISFACTION Learning Objectives After reading this lesson. you should be able to understand: • • • The concept of job satisfaction The various factors relating to job satisfaction The methods of enhancing job satisfaction The term 'job satisfaction' refers to an employee's general happiness with his or her job. If they are not satisfied. as a number of research studies have shown that varied work generally brings about more satisfaction than routine work. There is no clear research evidence between educational level and job satisfaction. In a sense. this is the most obvious approach. it usually depends upon the level and range of intelligence and the challenge of the job. For our purposes job satisfaction will be defined as the amount of overall positive affect or feelings that individuals have towards their job. which is based on the accumulation of cognitive information about the -work place and one's job. FACTORS RELATING TO JOB SATISFACTION Some of the most important factors relating to job satisfaction are briefly stated below: Personal Factors These factors include the individual employee's personality. There is as yet no consistent evidence as to whether women are more satisfied with their jobs than men. job satisfaction is determined by the discrepancy between what individuals expect to get out of their jobs and what the job actually offers. Caldur and Schurr in 1981 suggested that there are three different approaches to evaluating job satisfaction. positive or negative disposition learned through experiences. A person will be satisfied if there is no discrepancy between desired and actual conditions Importance of Job Satisfaction #45 . The type of work is very important. it has been found that this factor is most important to skilled personnel and least important to unskilled personnel. The first approach is that work attitudes such as job satisfaction are dispositional in nature.. as it argues that a person's job satisfaction is influenced directly by the characteristics of their job. As regards the relationship between the intelligence level and job satisfaction. As regards the relation of opportunity for advancement to job satisfaction. intelligence etc. skill required for work performance. Social and economic security to employees increases job satisfaction. i. Desirable working conditions are also important to job satisfaction. which suggests that job satisfaction and other work place attitudes are developed or constructed out of experiences and information provided by others at the work place. working conditions etc. then there is an improvement in both the quality and quantity of production. they are stable. the wages and salaries and fringe benefits are definitely the main factors that affect job satisfaction of employees. Job satisfaction is the result of various attitudes the employee holds towards his job. Job Factors These factors include the type of work to be performed. which have less social status or prestige. an effective downward flow of communications in an organization is also important to job satisfaction as employees are keen to know more about the company and its plans. occupational status involved in the job etc. Most of the evidence on the relation between age and satisfaction seems to indicate that there is generally a positive relationship between the two variables up to the pre-retirement years and then there is a sharp decrease in satisfaction. The importance of job Satisfaction is that if the people are satisfied with their work. fringe benefits. Locke defines job satisfaction as a "pleasurable or positive emotional state resulting from the appraisal of one's job experiences".e. Organizational Factors These factors include security. The third approach is the if information processing model'. age. wages and salaries. policies etc. educational level. As regards the relation of occupational status to job satisfaction. opportunities for advancement. there will be high absenteeism and employee turnover and increased unionism. then both the quantity and quality of his output will be low. research evidences indicate that employees are relatively more dissatisfied in those jobs.

and relationship with superiors and relationship with colleagues. #46 . 6. 21. 12. An example of a measure of job satisfaction from the OSI. 5. 20. work activities. 18. which contains all of the elements that usually make up a job satisfaction measure. The feeling you have about the way you and your efforts are valued. it should appreciate the role-of such factors and must take care to place the employees where the personal factors of the individual help him in achieving job satisfaction. is given in the Table 10. 19. The relationships you have with other people at work. 2. 3. 4. 10.1. 13. 16. 7. 9.Obviously. career prospects. The psychological “feel” or climate that dominates your organization. An organization can be substantially benefited if it develops general attitudes of its employees that can effectively contribute to job satisfaction. 22. Your level of salary relative to your experience The design or shape of your organization’s structure The amount of work you are given to do whether too much or too little The degree to which you feel extended in your job 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 MEASURES TO INCREASE JOB SATISFACTION Although management cannot change the personal factors in job satisfaction. 8. 17. Communication and the way information flows around your organization. 11. 14.1: An Example of a Measure of Job Satisfaction from the OSI How You Feel About Your Job? Very much satisfaction 6 Much satisfaction 5 Some satisfaction 4 Some dissatisfaction 3 Much dissatisfaction 2 Very much dissatisfaction 1 1. TABLE 10. working conditions. If employees are satisfied. turnover and absenteeism will be less and productivity will be more. They all tend to involve scales. Further. Measuring Job Satisfaction There have been many measures of job satisfaction in the work place from the Job Description index to Job Satisfaction Scales to the more recent job satisfaction scale of the Occupational Stress Indicator (OSI). The scope your job provides to help you achieve your aspirations and ambitions The amount of participation which you are given in important decision making The degree to which your job taps the range of skills which you feel you possess The amount of flexibility and freedom you feel you have in your job. which explore pay. job satisfaction significantly contributes to employee productivity and morale. The actual job itself The degree to which you feel “motivated” by your job Current career opportunities The level of job security in your present job The extent to which you may identify with the public image or goals of your organization The style of supervision that your superiors use The way changes an innovations are implemented The kind of work or tasks that you are required to perform The degree to which you feel that you can personally develop or grow in your job. 15. satisfaction of individual expectations results in group integration and cohesiveness. The way in which conflicts are resolved in your company.

satisfactory hours of work and adequate rest pausing. freedom to do work will also help increase job satisfaction. For example. the policy of job rotation. grievance handling. the management can use the factors inherent in the job to plan and administer jobs more advantageously for its personnel.Similarly. It is evident from the above description that there are many factors that influence job satisfaction and the managements must be able to work out a broad strategies that may help increase job satisfaction and must also able to identify the specific factors that causes the individual differences and must evolve appropriate strategies that could raise the job satisfaction of those particular segment. working conditions. The management should carefully develop appropriate policies and practices for promotions and transfers. and job enlargement may help increase job satisfaction. Proper delegation of authority. wages. fringe benefits. job enrichment. #47 . while keeping in view the factors related to job satisfaction. Above all. Management should also take necessary steps to raise the occupational status of the workers. Management should also able to recognize and appreciate the good work done by the employees and give respect for their creative suggestion. the management must recognize the importance of the stability of employee attitudes that may lead to high morale and production.

• Groups of all kinds and types help by cooperating in all the matters related to production and human relations to work effectively in the organization. For example. They are useful for the organization as they form foundation of human resources. They willingly participate in decision-making. Work committees. In 1920. • In a group. of two or more persons who interact with one another in such a manner that each person influences and is influenced by each other person'. They also make the environment at workplace more lively. • Group efforts affect an individual. who move in groups. • A group can judge in a better way as compared to an individual. all members of a group together use their creative and innovative ideas than a single individual. Group efforts are required for its completion. A manager can easily coordinate with the work of an individual by giving the group a task and allow them to co-ordinate with each other. Human behavior consists of individuals. • While accomplishing tasks. his attitude and behavior. construction of a fly-over. Need for a Group The reasons for the need. Groups can make a manager's job easier because by forming a group. job satisfaction and effective performance.11 GROUP DYNAMICS Learning Objectives After reading this lesson. Elton Mayo and his associates conducted the Hawthorne experiments and came to know that the group behavior has great impact on productivity. Types of Groups #48 . "a group comprises. Groups have significant influence on an organization and are inseparable from an organization. tedious arid of repetitive nature. The knowledge of group behavior as well as individual behavior is necessary for a manager. he need not explain the task to each and every individual. The group in which he moves influences individual work. The study of group behavior is essential for an organization to achieve its goals. managers must pay attention to the needs of individuals. Groups or work teams are the primary tools used by managers. • Groups help in making participative management more effective. The importance of group behavior has been realized from time to time. the interactions between its members should be productive.LESSON . Individual and group behavior vary from each other. etc. building a ship. of groups are as follows: • Management of modern organizations make mutual efforts to introduce industrial democracy at workplace. • The tasks in modern industries are becoming more complex. According to Marvin Shaw. Managers need groups to co-ordinate individual behavior in order to reach the organizational goals. DEFINITION OF A GROUP A group is a two or more individual who interact regularly with each other to accomplish a common purpose or goal. individuals communicate with each oilier. which also limit the size of the group. discuss their work performances and take suggestions from each other to make it better. work groups and teams are formed to monitor the work. • Group has the ability to satisfy the needs of its members. you should be able to: • • • Define the term group and describe types of groups Understand group formation and development Discuss group norms and group cohesiveness A group consists of a number of individuals working together for a common objective. It is difficult for members to interact sufficiently in a large group. The key parts of this definition are the concepts of interaction and influence. Therefore. All these require coordinated and unified efforts of many individuals. He must understand group psychology and should also understand individual behavior in the context of group behavior. making of a movie. But for a group to work effectively. They use project teams and work committees where workers get due recognition. working in a group. • An individual cannot perform each and every task.

teachers of the same faculty in a university. According to A L Stencombe. regulations and policy of the organization. etc. They also develop a solution to a problem or complete its purpose. by mutual interests or both. These are the groups formed by the employees themselves at the workplace while working together. o Friendship group: Friendship groups are the groups of individuals belonging to same age group. Informal groups form when individuals are drawn together by friendship. understanding how groups form and develop is important for managers. These groups are permanent in nature.In an organization. Informal committees. evaluating a proposed grievance procedure. A formal organizational group includes departments such as the personnel department. They are also like a powerful force. These groups are spontaneous. the individuals join a group. These groups can also be formed outside the plant or office and can be in the form of clubs and associations. values etc. Informal groups are very effective and powerful. The organization does not take any active interest in their formation. • Task group Tasks groups are the groups formed by an organization to accomplish a narrow range of purposes within a specified time. The individuals of a group can join and leave the group any time and they can also change their tasks. There are certain motives because of which. assigns a narrow set of purposes such as developing a new product. "a formal group is said to be any social arrangement in which the activities of some persons are planned by others to achieve a common purpose". These groups are temporary in nature. having similar views. For example. beliefs. They suspect their integrity and consider as a virtual threat. The organization after specifying a group membership. tastes and opinions. Some managers do not consider them as threat and seek the help of group members in getting the organizational task accomplished. increase in salary. which are as follows: #49 . Informal groups are of following types: o Interest group: Interest groups are the groups formed to attain a common purpose. "the network of persons and social relations which is not established or required form an informal organization". They have to follow rules. the quality control department and the public relations department. • Informal group Informal groups are the groups formed for the purposes other than the organizational goals. According to Keith David. task forces and work teams are included in task groups. Groups are formed voluntarily. Some managers consider them to be harmful to the interest of an organization. They want support from the group. which an organization cannot avoid. which are as follows: • Functional or formal groups Functional groups are the groups formed by the organization to accomplish different organizational purposes. o Reference group: Reference groups are the group where individuals shape their ideas. medical benefit and other facilities are the examples of interest groups o Membership group: Membership groups are the groups of individuals' belonging to the same profession and knowing each other. These groups work as an informal communication network forming a part of the grapevine to the organizations. Employees coming together for payment of bonus. together. Hence. the advertising department. GROUP FORMATION AND DEVELOPMENT Groups can form when individuals with similar goals and motives come. there are three types of groups.

During this stage. The factors that contribute to interpersonal attraction are sex. The closeness of group members may also be an important factor. • Personal motives to join groups: Individuals also choose to join informal or interest groups for unimportant reasons. • Need for affiliation: Another reason for individuals to join groups is to satisfy their need for attachment. various personal motives affect membership. discussing current events or contemporary literature. • Support for group goals: The individuals may also be motivated goals by the other group members to join. • Instrumental benefits: Group membership sometimes also helpful in providing other benefits to an individual.2. For example. which is dedicated to environmental conservation. which inter-personal behavior is acceptable and which is #50 . which are depicted in the figure 11.1: • Interpersonal attraction: Individuals conic together to form informal or interest group. a manager might join a Rotary/ Lions club if he feels that being a member of this club will lead to important and useful business contacts. such as these in order to donate their money and time to attain the goals they believe in and to meet other individuals with similar values.• Organizational motives to join groups: Organizations form functional and task groups because such groups help the organization in structuring and grouping the organizational activities logically and efficiently. • Interest in-group activities: Individuals may also be motivated to join an informal or interest group because the activities of the group appeal to them. STAGES OF DEVELOPMENT Members of new group are unfamiliar with one another's personalities and : hesitant in their interactions. as they arc also attracted to each other. a club. Playing tennis. The new group must pass s of development. Retired/old aged individuals join groups to enjoy the companionship of other individuals in similar situation. may motivate individuals to join. Some of these are shown in the figure 11. Since joining these groups is voluntary. For example. Mutual Acceptance • Making Acceptance • Sharing Acquaintances • Discussing Subjects • Testing Each Other • Being Defensive Slow Evolution to Next Stage Communication and Decision-Making • Expressing Attitudes • Establishing Norms • Establishing Goals • Openly Discussing Tasks • Being Defensive Burst of Activities to Next Stage Motivation and Productivity • Cooperating • Working Actively on Tasks • Being Creative Slow Evolution to Next Stage Control and Organization • Working Independently • Assigning Tasks Based on Ability • Being Flexible Figure 11. similar attitudes. personality and economic standing. all these are group activities that individuals enjoy.2 These different stages of group development are explained as follows: • Mutual Acceptance The very first stage of a group development is called "Mutual Acceptance". Individuals join groups. the members of the group get familiar with one another and check.

• • CHARACTERISTICS OF MATURE GROUPS As groups pass through the stages of development to maturity. Norms play a significant role in disciplining the members of a group to make them to work regularly and properly. traditions and expectations shared by group members. some focus on the group's task. Norms define boundaries between acceptable and unacceptable behavior. This reduces absenteeism and employee turnover. Role structure is the set of defined roles and interrelationships among those roles that the group members define and accept. Motivation and Productivity The third stage is "Motivation and Productivity". group members share their opinions and formulate the group's goals. therefore. They can be social and fair in nature. which is characterized by a shared acceptance among members of what the group is trying to do. which are as follows: o Ability of a group to retain its members. Control and Organization The fourth stage is "Control and Organization". in which the members perform the roles they have accepted and direct their group efforts toward goal attainment. Each person recognizes and accepts his role as well as to accept and to understand the roles to others. they begin show signs of the following four characteristics: a role structure. Through communication and decision-making. The goals can be achieved effectively depending on the following factors: o The extent of cooperation with management. In reality. role conflict and role overload. The primary leader has more influence on the group members than the secondary leaders. They make the members to identify themselves with the group. • Cohesiveness Cohesiveness is defined as the attractiveness of group members towards the group. These leaders come forward on the basis of acceptance of all the group members. During this stage. beliefs. It. It also emphasizes on the group's ability to satisfy its members needs. This helps all the members of a group to know each other better and helps the group to move to the next stage easily. the structure becomes clear and the group moves to the third stage. attitudes. personal characteristics of group members and frequency of interaction. o Satisfaction of the needs of group members. this developmental sequence varies from group to group. They are framed to achieve objectives of the group. but they must have some goals over a period of time. helps the group members to work more consistently and make greater contribution to the achievement of the organizational goals. o Maintenance of an efficient communication system. Every informal group has one primary leader apart from the secondary : leaders. This will make the group more organized Types of Group Norms There are two types of group norms. "Group norms are rules or guidelines of accepted behavior which are established by a group and used to monitor the behavior of its members". • Behavioral norms Although informal groups do not have any specific goals to accomplish. Members also become more comfortable with each other and develop a sense of group identity and unity.unacceptable by the other members of the group. The failure in role development result in role ambiguity. cohesiveness and informal leadership. o Power of the group to influence its members. Managers have to take steps to avoid role ambiguity. According to Cartwright there are four principal consequences of cohesiveness. It is also psychologically more satisfying to all of its members. These goals are temporary and can be changed in accordance with the needs of the group members. o Feeling of security on the part of the members. • Informal leadership Each informal group has one or more leaders. depending on the time. GROUP NORMS Norms refer to group behavior standard. • Communication and Decision-making The second stage of group development is "Communication and Decision-making''. role conflict and role overload. behavioral norms. According to Michael Argyle. Some individuals are leaders. which arc as follows: #51 . o Degree of participation and loyalty of members. The members of the group are expected follow the norms strictly. • Role Structures A role is the part that an individual plays in a group to reach its goals. some interact with other groups and so on.

Advantages of Group Cohesiveness The advantages of group cohesiveness are as follows: • The members of cohesive groups have high morale. The following factors can increase group cohesiveness: • Competitiveness with other groups. • Agreement on goals. However. the members work well together. • The history of the group and its members also plays a part in conformity. support and trust one another and are generally effective at achieving their chosen goals. Aswalhappa. commitment to the organization and therefore result in high level of performance. • Favourable evaluation from outsiders. There are several factors consist of norm conformity. like individuals. which decreases the chances of in clash among the views of group members at the workplace or elsewhere. For example. According lo K. Performance norms: Performance number of hours worked. "greet every customer with a smile''. Moreover. • Inter-personal attraction. Group Cohesiveness According to Rcnsis Likert. try to operate in such a way that they maximize their chances of task success and minimize (heir chances of task failure. new group members are also asked to follow the same. • If the norms simplify or predict regarding the behavior which is expected from group members. Groups. Examples are. to regulate each and every action of the group members. "do not come to committee meetings unless you have read the reports to be '"discussed"'. #52 . "cohesiveness is understood as the extent of liking each member has towards others and how far everyone wants to remain as the member of the group". If the group was not successful in the past. Cohesiveness is the extent to which group members are loyal and committed lo the group and to each other. A group that lacks cohesiveness will not be very much coordinated. Attractiveness is the key to cohesiveness. It refers to the attachment of members with the group. groups want to increase morale and prevent any interpersonal discomfort to their members. even very similar work groups may develop different norms-. Only those behaviors that sound to-be important by group members should be brought under control. These norms tend to reflect motivation. • Individuals of cohesive groups have no anxiety at the workplace. • Members of cohesive groups are regular at their work. Reasons for Strong Enforcement of Norms • norms are rules that standardize employee output and Groups don't have the time or energy.• Behavior norms: Behavior norms are rules that standardise how individuals act while working on a day-to-day basis. • If the norms emphasize the roles of specific members within a group and • If the norms help the group to solve the inter-personal problems themselves. Its members will not support one another and they may face difficulty in reaching their goals. • The members don't have conflicting views. Uniqueness of Group Norms The norms of one group cannot be easily mixed with another group. "cohesiveness is the attractiveness of the members towards the group or resistance of the members leaving it". Norms that will help groups meet these aims of performing successfully and keeping morale high are likely to be strongly enforced. Groups want to facilitate their performance and overcome barriers to reach their goals. In a highly cohesive group. • Organizations gain from the members of cohesive group because they communicate better they share ideologies and respect opinions of fellow employees. The members of one group may be friendly with their supervisor whereas those of another group may not Norm Conformity Norms have the power to force a certain degree of conformity. which are as follows: • Some groups may exert more pressure for conformity than others because of the personalities of the group members. if the group has always been successful by following certain behaviors. • Cohesiveness increases productivity. Some differences are primarily due to the difference in structure of the groups. Managers should develop an understanding of the factors that increase and reduce group cohesiveness. etc. a new group member may have greater freedom to exhibit other behaviors. Conditions where group norms will be strongly enforced are as follows: • If the norms facilitate group success or ensure group survival.

but it can result in communication problems. Misinformed receivers often become irritated and then hostile. conflict among groups of different interests is unavoidable. Horizontal conflict arises among the employees at same level. union and management are few examples of inter-group conflicts that arise because of in compatibility of goals. two groups competing for scarce resources. knowledge and understanding of conflict and the methods of resolving it are important. or a decision. Unpleasant experiences. This may be due to horizontal differentiation and task specialization. Perceived conflict: Is a situation when both the groups realize that there exists conflict between them. managers spend an estimated 20 percent of their time dealing with group conflicts. In other words. Some of them are related to limited resources. • Incompatible goals: Inter-group conflict arises because of goal incompatibility. Following is the sequence in which a conflict can arise: Latent conflict: Is a situation when the conditions for conflict arise. different perceptions. • Group conflict: Are the conflicts arising within two or more groups due to difference in their attitudes and behavior. attitudes and lack of clarity about responsibilities. • Infra-organizational conflict: Are the conflict arising between levels of an organization. The reasons for group conflicts are as follows: • Communication problems: Groups often become very involved with their own areas of responsibility. communication problems. Disagreement on goals. The conflict between production and marketing departments. Paying attention to an area of responsibility is a worthy Endeavour. The following factors decrease cohesiveness: Large group size. line and staff departments. goal attainment by one group may reduce the level of goal attainment by other groups. departments. In organizations everywhere. Felt conflict: Is a situation when members involved in the conflict feel tense or anxious. a proposal. LESSON . sections or work teams. differences in interests and goals. Domination by one or more members. Competitiveness within group. Vertical conflict arises between higher and lower level of management.• • • • • • Frequent interaction. which are of two types. Inter-group conflicts result from the ways in which organizations co-ordinate the work of different groups and distribute rewards among those groups. TYPES OF CONFLICT The levels of group conflict are as follows: • Personal conflict: Are the conflicts that arise among employees. In either case. The receiver of information should be considered when a group communicates an idea. #53 . An organization is an interlocking network of groups. The success of an organization depends upon the harmonious relations among all independent groups.12 LEARNING AND BEHAVIOR MODIFICATION Learning Objectives After reading this lesson. Managers may either directly resolve the conflicts or they may act as mediators between two or more employees. For example. Conflict outcome: Is a situation or consequence arising after the conflict is eliminated. individuals because of their competitive roles. Manifest conflict: Is a situation when both the group try to frustrate each other. According to one survey. They tend to develop their own unique vocabulary. you should be able to understand: • • Conceptual clarity about nature and levels of conflicts The sources and effects of conflicts to manage conflicts Conflict arises from difference of opinion between the group members while attaining the organizational goals. REASONS FOR CONFLICT There are many reasons for conflicts among groups and its members.

Task ambiguity often arises where the organization is growing quickly or the organization's environment is changing rapidly. amenities. The only linkage between the two is that they share financial resources from a common pool and the success of each branch contributes to the success of the organization. Thus. The greater the differences in goal and time between two groups. arises because of the differences between aggregate demand of a group and available resources to meet them. For example. This can affect the success of a group to accomplish their work in an effective manner. the more likely it is that conflict will arise between them while co-ordinating their work efforts. the output of one group becomes the input of another group. In simple words. It may be the responsibility of either the personnel department or any of the functional departments such as marketing. there is a possibility of conflicts. Second. the line group may have to depend even more heavily on staff groups such as advertising. conflict of this nature. o Conflicting reward systems: Sometimes the ways in which reward systems in organizations arc designed create a situation in which one group can only. The production department provides the goods to the marketing department to sell and the marketing department prepares the orders and estimates on the basis of the volume produced by the production department. According to J. o Resource sharing: The relation between two groups can be affected by the degree to which they make use of a common pool of resources and the degree to which this common pool of resources is adequate to meet the demands of both the groups. In sequential task interdependence. values and perceptions of members of various groups towards each other can be a cause and a consequence of the nature of their relationship. Life and staff groups often have conflicts resulting from this type of interdependence. it refers to the dependence of one group on another for resources or information. functional groups differ in their time perspectives. a branch in Delhi does not need to interact with a branch in Chennai. The range of work of manufacturing group is evaluated on how quickly it can manufacture high-quality products while the range of R&D scientists can be evaluated on the basis of product development and testing after a long period of time. In such situations. o Different perceptions and attitudes: The attitudes. o Difference in work orientation: The ways in which employees do their work and deal with others vary widely with the functional areas of an organization. group relies on other organizational groups to complete its tasks. disagreements in their views and among themselves. For example.• Task interdependence: Task interdependence means to what extent a work. working conditions and other related matters. R&D scientists have a longer-range of goals than manufacturing groups. accomplish its goal at the expense of other groups. It can be said in genera] that as interdependence increases. o Sequential task interdependence: It arises when one group is unable to commence its work until the work of other group gets completed. The conflict between management and the labor union-is the best example. Each party of the conflict competes with each other to get a larger share. the potential for conflict is greater. For example. DYNAMICS OF INTER-GROUP CONFLICT The following points are covered in the dynamics of an inter-group conflict: #54 . Each group is dissatisfied will the quality or quantity of work received. To increase the amount of products sold. Inter-group conflict arises from reciprocal task interdependence over difference in performance expectations. o Reciprocal interdependence: It arises between the groups. o Task ambiguity: The lack of clarity over job responsibilities is called task ambiguity and it frequently leads to aggression between groups. staff departments may be rewarded for cutting costs and personnel while line departments are rewarded for increasing the amount of products sold or services provided. The confusion may also arise regarding who has the final authority to execute the final decisions. which are as follows: o Pooled interdependence: It arises when groups have little interaction with each other but are affected by each other's activities. However the staff groups are being rewarded for cutting costs and personnel provided the types of services asked for by line groups can prevent them from meeting their own goals. misinterpretation of the behaviors and activities of other groups. which depend on each other for their respective task such as production department and quality department. First. A good example of task ambiguity is inter-group conflict arising in the recruitment of new employees. secrecy and closed communications. If the group relations begin with the attitudes of distrust. from the other group. finance. there are three types of interdependence among groups. Conflicting reward systems inevitably result in poor inter-group relations. competitiveness. Such conflicts take place in the quantum of wages. These differences between groups result in frustration. Inter-group conflict also arises when it is not clear which group is responsible for certain activities. the potential for conflict increases. The goals of manufacturing groups are more specific and clear-cut than the goals of R&D groups. the goals of different functional groups vary to a large extent. Thompson.

a union might threaten to strike to pressurize management. in which the groups agree as to what each of them will get and give others regarding their work. representatives from financial institutions are included in the Board of Directors of a Company to participate in decision-making activities. It includes encouragement on the part of managers to the groups so that they will be able to meet and discuss their differences. It includes avoidance of direct approaches on the part of managers to solve among groups. o Changes in relation between groups: The nature of the relationships between groups also changes markedly during inter-group conflicts. By doing so. attitudes and behaviors of the participants. POT example. In an inter-group conflict. o There is a shift among the groups from a problem-solving motive to a win-lose motive. allocution of responsibilities to different group members. systematic changes take place in the perceptions. Methods to Solve Inter-group Conflict Indirectly The various methods to solve inter-group conflicts indirectly are as follows: • Avoidance: It is an indirect method often used by the managers. For example. o There is increased ill feeling towards the rival group. In the face of an external threat. o In an inter-group conflict. Each group makes some compromises so that there can be some predictability and stability in their relationships. Each party undervalues the interests of the other group. it is important for a group to respond quickly and in a unified manner to the activities of other groups. Some of these strategies allow co-operation and sharing between groups while other strategies are more competitive and increase the power of one group at the expense of others. two or more groups cooperate or combine their resources in order to increase their power over other groups. Bargaining between two groups is successful if both groups are comfortable with the agreement between them. • Controlling Information: Gaining access to sensitive information and then limiting other group's access lo it increases the power of" the information-' rich group and other subunits. • Bargaining: This is the indirect method. they can find out a solution without the involvement of management. Members of groups co-operate with each other in order to compete more effectively with members of other groups. • Encouragement: This is another indirect method to solve the group conflicts. But management usually tries to minimize the conflict indirectly and if this fails. It becomes difficult for each group to see the positive behavior and attitude of the other group. But avoidance does not always minimize the problem. Afterwards'. past differences and difficulties between group members are forgotten and group cohesiveness increases. • Contracting: It refers to the negotiation or an agreement between two groups. For example. become directly involved. But persuasion is possible only if there are no clashes between the groups and its members Methods to Solve Inter-Group Conflict #55 . GROUP STRATEGIES TO GAIN POWER There are several strategies that various groups use to gain power in an inter-group conflict situation. contracting occurs between labor and management at the time collective bargaining. • Pressure tactics: These are applied to force other to use the most competitive strategy a group can use to gain power. • Influencing decision criteria: Groups can also sometimes exert power lo change criteria for decision-making that are selected as the basic for resource distribution.• Changes within each group: When there is inter-group conflict in an organization. Management reaction to disruptive inter-group conflict can take many different forms. This makes the accomplishment of the assigned task much easier. • Co-opting: It occurs when a group gives some of its leadership positions to members of other groups or includes them in its policy-making committees. They are as follows: o The group demands more loyalty from individual members while facing an external threat. The changes that occur arc as follows: o There are distortions of perception about one's own group and about the other group. • Forming association: In forming an association. a quick turn around time on the repairs of needed equipment only if the Second group agrees to bring complaints about the quality of repairs to it before going to management. the organization and structure of the work group becomes more rigid. o The interaction and communication between groups' decreases. Matters can get worse if nothing is done and the groups can become more aggressive and unfriendly. in which the groups find the areas of common interests among themselves. It leads to more coordination of activities. one group may agree to give the other. the groups try to show how important it is to each of them in attaining organizational goals. For instance. The groups try to find out those interests levels where they have the same say. Union-Management relationships during contract negotiations are one of the examples of the group dynamics. • Persuasion: This is the indirect method.

o The use of co-operative approaches among groups in organizations often leads to more positive results than does the use of competitive approaches. greater integration or collaboration among groups is needed. When conflicting groups have to cooperate to accomplish a goal. Ignoring the conflict is characterized by the absence of behavior wherein the members of the groups avoids dealing with the dysfunctional aspects of the conflict. o Managers should monitor reward systems to eliminate any win-lose conflicts among groups. conflict can be minimized. These are goals desired by two or more groups that can only be accomplished through the cooperation of the groups. The task force develops the ideas 'and procedures for improving group interaction and thereby attempt to solve the conflicts arising between the groups. removing them is a possible solution. • Domination by the management: This method of solving inter-group conflicts emphasizes on improving the inter-group relations. a. Management can use domination to minimize the conflicts by exercising its authority and power over the groups and their members. But the disadvantage of this method is that it ignores the causes of conflicts and as a result. It is also difficult to pinpoint accurately the individuals who are the root-cause of conflicts. The super ordinate goals are as follows: The assignment and coordination of work among groups should be clarified so that the daily disputes over minor issues can be avoided.The various methods to solve inter-group conflicts directly are as follows: • Ignoring the conflict: This is a direct method used by (he managers to solve inter-group conflicts. The final method to minimize the conflicts is to find super-ordinate goals. To improve the inter-group relations. the conflicts among groups can reduce. a wide profit-sharing plan of a company may encourage groups to work together. group simply refuses to attack the other group. • Problem solving: Management can also establish a task force with representatives from groups in conflict to work on problems. If the profits of a company are distributed among employees at the end of the year. If a conflict arises because of personality differences between two individuals. The key figures that are to be removed may be leaders of the groups and removing them could lead to greater conflict. o Appealing to super-ordinate goals. the conflict situation frequently continues or gets worse over time. o Managers can establish rules and standard procedures to regulate conflict in more constructive and effective ways. In this. #56 . It includes the removal of the key figures in the conflict. For example. • Removing the key figures in the conflict: This is another direct method to solve the inter-group conflicts.

the behaviors that occur in an organization are vital to the communication process. to whom. It is a way of reacting to the other person with ideas. Since managers work with and through other people. Communication experts emphasize the behavioral implications of communication by pointing out that "the only means by which one person can influence another is by the behaviors he shows that is. This is necessary for group effort. In other words. Communication transforms a group of unrelated individuals into a team that knows what its goals are and how it will try to reach them. orders and procedures must pass through some kind of communication channel. peers and others outside the organization. Accordingly. that is necessary for motivation. facts. To foster any attitude. To prepare workers for a change in methods of environment by giving them necessary information in advance. organizational behavior scholars. Importance of Communication Interpersonal roles require managers to interact with supervisors. Thus. thoughts.1: Chain of Communication in Organizational Behavior Objectives of Communication Managements depend upon communication to achieve organizational objectives. sub-ordinates. which can cause conflict and tension. All other management functions involve communication in some form of directions and feedback. for co-ordinated action. Interpersonal communication is fundamental to all managerial activities. the communicative exchanges between people provide the sole method by which influence or effects can be achieved". some of the purposes of communication are: • • • • • • • To discourage the spread of misinformation. cooperation and job satisfaction. through which channel and with what effect. To develop information and understanding among all workers.1 can be used to identify the major categories of communication that arc especially relevant to the study of organizational behavior. you should be able to understand: • • • • The meaning and importance of communication Communication process Various types of organizational communication The barriers and the methods of overcoming barriers to effective communication Communication is one of the most frequently discussed dynamics in the entire field of organizational behavior. DEFINITION OF COMMUNICATION In modern society. The figure 13. To encourage subordinates to supply ideas and suggestions for improving the product or work environment and taking these suggestions seriously. To improve labor management relations by keeping the communications channels open and accessible. the term communication is frequently and freely used by everyone. Broadly. feelings and values. policies. ambiguity and rumors.LESSON-13 ORGANIZATIONAL COMMUNICATIONS Learning Objectives After reading this lesson. communication is considered to be the most important and most effective ingredient of the management process. effective management is a function of effective communication. all their acts. #57 . In practice. Thus. it means who says what. Communication Technology Interpersonal Technology Verbal Technology Figure 13. rules. and management practitioners. Therefore. communication is necessary. including members of the general public. This personal and behavioral exchange view of communication takes many forms. Communication is the process of transmitting information from one person to another. effective communication is a basic prerequisite for the attainment of organizational goals. This would satisfy the basic human need for a sense of belonging and friendship. Also there must be channel of communication for feedback. To improve social relations among workers by encouraging intercommunication.

facial expressions. physical actions and symbols such as numbers. Indeed. On any given day. the more important the communication of information becomes. the familiarity of the sender and receiver and other situational factors. Decoding The person to whom the message is sent. communication is necessary to implement the decision and to evaluate its results. This process may be simple and automatic. graphs etc. a manager may communicate for all the purposes described above. Market researchers. pictures. it is transmitted through the appropriate channel or medium. for example. for instance. People need to knowwhere they are heading and why. Source or Sender The communication cycle begins when one person called the sender wants to transmit a fact. Changes in market or in customer preferences can lead to uncertainty about whether a product Or a marketing strategy needs to be updated or overhauled. The encoding process is influenced by the content of the message. letters and reports. Encoding The second step is to encode the message into a form appropriate to the situation. your experience with the letter-writer and so on. Common channels or media in organizations include face-to-face communication using the media of sound waves. called the receiver interprets the meaning of the message through the process of decoding. both the sender and the receiver perform the encoding and decoding functions automatically. Even when you are just reading a letter. #58 . there is a communication gap and misunderstanding is likely to follow. but it can also be quite complex. you may need to use all your knowledge of the language. The greater the uncertainty about a task. can be reduced by communicating that information. In the simplest kind of communication. Communication goes up. They also need directions for their specific tasks. Communication of feelings can be very important to employee morale and productivity. Decision-makers must share their views on what the problem is and what the alternatives are. can communicate with other groups about changes in the market place. Once a decision has been made. The first type of information that needs to be shared is what the goals of the organizations are. Transmission After the message has been encoded. gestures. as a loop between the source and the receiver. If the intended message and the received message differ a great deal. A manager. might call the research department to send the latest information on a particular market.2 presents a general view of the communication process. opinion or other information to someone else. Communication also allows people to express their emotions. most communication involves a combination of these. COMMUNICATION PROCESS The figure 13. The encoding might take the form of words. The uncertainty resulted from the lack of information. down and across the levels of the hierarchy of an organization. Communication is especially important for the task of decision-making.Communication allows people to co-ordinate with each other by providing them with a way to share information. idea. Employees who feel that they cannot vent their anger or express their joy on the job may feel frustrated and repressed. light.

It can also be internal to the receiver such as tiredness or hunger or minor ailments. Noise In the communication process. operations manual describe how to perform tasks and respond to work-related problems. or an individual acting on behalf of a group. Where one-way communication #59 . it might be something that keeps the receiver from paying close attention such as someone coughing. The communication cycle continues when the receiver responds by the same steps back to the original sender. A letter is a formal means of communication with an individual. a car driving by etc.Receiver The receiver can be an individual. As such. The figure 13. ORAL COMMUNICATION Oral communication. Instruction manuals tell employees how to operate machines. They tend to deal with a single topic and are more impersonal. but less formal than letters. which may affect the message. which are written. oral. Typically organizations produce a great deal of written communication of many kinds. Noise refers to any type of disturbance that reduces the clearness of the message being transmitted. A performance appraisal form is an example. Manuals have various functions in organizations. or a memo. METHODS OF COMMUNICATION There are mainly three primary methods of communication in an organization. the nature of the message. also known as face-to-face communication is the most prevalent form of organizational communication. understand it or respond immediately. noise takes on a meaning slightly different from its usual one. policy and procedure manuals inform them of organizational rules. These methods of communication are often combined. they represent attempts to make communication more efficient and information more accessible. The sender has generally little control over how the receiver will deal with the message. and non-verbal. Probably the most common form of written communication in organizations is the office memorandum. manuals and forms. generally someone outside the organization. It may be in the form of direct talk and conversation between the speakers and listeners when they are physically present at one place or through telephone or intercom system conversation. weak signal due to bad weather etc. Other common forms of written communication include reports. Reports generally summarize the progress or results of a project and often provide information to be used in decision-making. decide not to try to decode. Memos usually are addressed to a person or group inside the organization. and the lost of transmission. The receiver may ignore it. Thus. other people talking dosely.3 given below shows various forms each method can take. which is called the feedback. It can be a disruption such as disturbance in a telephone line. a group. Considerations that affect the choice of method include the audience whether it is physically present.

• There is no immediate feedback opportunity to be sure that the receiver has understood the message.is required. The more people the message is to pass through. • Because the message is conveyed instantaneously. • It is more reliable for transmitting lengthy statistical data. These areas have to be covered in writing for efficient functioning of the organization. • Confidential written material may leak out before time. beliefs and feelings. The message can be checked for accuracy before it is transmitted. In addition. but also observes the physical gestures associated with it as well as the changes in tone. • It can save time when many persons must be contacted at the same time. NON-VERBAL COMMUNICATION Some of the meaningful communication is conveyed through non-verbal ways. information bulletins and so on. rules and regulations. memos. The written communications are more likely to be well considered. specially for lengthy reports. The message can be stored for an indefinite period of time. policy manuals. The human voice can impart the message much more forcefully and effectively than the written words and is an effective way of changing attitudes. • It appears formal and authoritative for action. if necessary. WRITTEN COMMUNICATION A written communication is put in writing and is generally in the form of instructions. logical and clear. Disadvantages • It can be very time-consuming. • It provides a permanency of record for future references. some of the environmental elements such as building and office space can convey a #60 . Oral communication is particularly powerful because the receiver not only hears the content of the message. it helps in avoiding delays. Even some of the verbal messages are strengthened or diluted by non-verbal expressions. simple. • It allows for feedback and spontaneous thinking. then oral communication may include public address system. It also ensures that everyone has the same information. • The receiver may receive the message in his own perception and thus misunderstand the intent of the message. the greater is the potential distortion. causing disruption in its effectiveness. It is most effective for leaders to address the followers via public address system or audio-visual media. • Spontaneous responses may not be carefully thought about.the long hierarchical chain of command. red tape and other formalities. then some distortions can occur during the process. • If the verbal message is passed on. Informal rumour mill or grapevine is also a popular form of oral communication. • It leads to excessive formality in personal relations. • Organizational Communications • More or less or a different meaning might be conveyed by manner of speaking. so that if the receiver js unsure of the message. pitch. rapid feedback allows for early detection by the sender so that corrections can be immediately made. • It conveys personal warmth and friendliness and it develops a sense of belonging because of these personalized contacts. Disadvantages • There is no formal record of communication so that any misunderstood message cannot be referred back to what was actually said. trust and sincerity can be much better judged in a face-to-face conversation rather than in written words. It is most effective when it is required to communicate information that requires action in the future arid also in situations where communication is that of general informational nature. formal reports. Advantages Some of the advantages of oral communication are: • It is direct. • The spirit of authority cannot be transmitted effectively in verbal transactions. • It reduces the likelihood of misunderstanding and misinterpretation. tone of voice and facial expressions. letters. • Lengthy and distant communication cannot be conveyed verbally in an efficient way. These non-verbal expressions include facial expressions and physical movement. since faith. Advantages • It serves as an evidence of events and proceedings. time saving and least expensive form of communication. speed and volume of the spoken word.

frustration. facial expressions can be categorized as: • Interest-excitement • Enjoyment-joy • Surprise-startle • Distress-anguish • Fear-terror • Shame-humiliation • Contempt-disgust • Anger-rage Physical movements or body language is known as "kinesics".force. folding of arms or sitting position in a chair. shyness. As far as environmental elements are concerned.4 shows Wheel Communication Network. Members of a task force or committee often develop a circle network of communication with each person communicating directly to the other members of the task. tap our fingers on the table for impatience and we slap our forehead for forgetfulness. #61 . On the other hand. a wheel network develops. Other examples of body language are tilting of head. When the members of a group communicate mostly with the group leader. wink an eye for mischief or intimacy. Accordingly non-verbal actions have considerable impact on the quality of communication.5 shows Chain Communication Network. When the members of a group are on different levels/of the organization's hierarchy. power and prestige such as that of a chief operating officer. arrogance. Informal groups that lack a formal leader often form an all-channel network that everyone uses to communicate with everyone else. a large office with luxurious carpeting and expensive furniture conveys a message of status. A handshake is probably the most common form of body language and tells a lot about a person's disposition.message about the authority of the person. According to Tipkins and Mc-Carter. Our facial expressions can show anger. a chain network is developed. Communication Networks A communication network is the pattern of information exchange used by the members of a group. Figure 13. Some of the other body language symptoms are shrugging our shoulders for indifference. fear and other characteristics that can never be adequately communicated through written word or through oral communication itself. a small metal desk on a corner communicates the status of a low ranking officer in the organizational setting. Figure 13.

6 shows Circle Communication Network. Figure 13.7 shows All Channel Communication Network. #62 .Figure 13.

norms and cohesiveness also affect the' formation of communication networks. For hard tasks. who sees that a wheel network is forming around an experienced. Managers must make use of all these characteristics and tendencies to help groups communicate and work most efficiently. trusted employee might not interfere with the process. For instance. Group Performance Factors: The group performance factors like group's size. Non-verbal communication is also important and can be a part of interpersonal. 3. Members' commitment to the group's work is defined by the centrality of the position of the members. it is much easier to have an all-channel network in a group of eight than in a group of eighty. they do not sufficiently describe the paths of all messages transmitted in organizations. Individuals can send and receive messages across whole organizational levels and departments by means of vertical communication or the informal communication network. For instance. All these provide insight into possible communication problems. all channel networks arises. The following factors influence the formation of communication patterns within small groups: Organizational Communications • 123 1. A manager. the manager may need to take action.The density of communication refers to the total quantity of communication among members. group and organizational communication. The ease with which members can communicate with others is measured by members' relative freedom to use different paths to communicate. 2. The distance between members describes how far a message must travel to reach the receiver. composition. the manager may encourage silent group members to speak in order to get the desired decisions. a chain or wheel network is used. If the manager relies on a group to help make decisions. For instance. as messages travel a long distance to get to the receivers. if members always sit around a table. Environment: Environment including the group's seating arrangement and meeting place also affects communication patterns. a group with high density and distance can expect a lot of noise distortion in its communication. If an assertive but irresponsible employee becomes the hub of such a wheel. Type of Task: If the task of the group is simple. then circle network arises. FORMS OF ORGANIZATIONAL COMMUNICATION Although interpersonal and group forms of communication pertain even at the broadest organizational levels. #63 .

For example. Upward Communication Upward Communication consists of messages moving up the hierarchy from subordinates to superiors. This will give managers. #64 . BARRIERS TO COMMUNICATION The communication must be interpreted and understood in the same manner as it was-meant to be sent by the sender. Downward Communication Downward Communication consists of messages moving down the hierarchy from superiors to sub-ordinates. Managers should have some control over the informal network. In the transactional process. This communication typically takes place between managers and their superiors or subordinates. but it develops a personal linkage between the superior and the subordinate. there are personal factors. The basic idea is that some managers keep in touch with what is going on by wandering around and talking with people such as subordinates. the communication is not simply the flow of information. new ideas and a better feel for the entire company. For instance. Other Form's of Communication One that has become especially popular is informally labelled as "management by wandering around". which is mutual and reciprocal because. Inappropriate Channel Poor choice of channel of communication can also be contributory to the misunderstanding of the message. dealers and any one else involved with the company in any way. The content of gossip is likely to be personal information or the information about the organization itself. Hence the manager must know when to communicate. It may cause interference in the process of communication by distraction or by blocking a part of the message or by diluting the strength of the communication. which interferes with the effectiveness of communication. suggestions or complaints and information the sub-ordinate thinks is of importance to the superior. They may also issue a clearly worded memo or report stating the facts and thereby help minimize the damage that the informal network can do. a last minute communication with a deadline may put too much pressure on the receiver and may result in resentment. Each person is constantly sharing in the sending and receiving process and each person is affecting the other". When these kinds of rumors are being spread. performance feedback and information that the superior thinks are of value to the sub-ordinate. "all persons are engaged in sending and receiving messages simultaneously. which affect communication. Some of the organizational barriers and some of the interpersonal barriers to effective communication are discussed below: Noise Barriers Noise is any external factor. Informal Communication Another term for informal communication network is the grapevine. it should be "transactional" communication. customers. assignments.Vertical Communication Vertical communication is the communication that flows both up and down the organizational hierarchy. Some of the sources contributing towards noise factor are: Poor Timing A message sent on poor timing acts as a barrier. The content of downward communication often includes directives. A message must be sent at an appropriate time to avoid these problems. false information or politically motivated information. otherwise it will not achieve the desired result and a communication breakdown will occur. There are certain external roadblocks to effective communication. the grapevine in an organization may be carrying harmful information. The term is derived from noise or static effects in telephone conversation or radio wave transmission. The content of upward communication usually includes requests. Informal networks are found in all organizations. It is in the form of gossip in which a person spreads a message to as many other people as possible who may either keep the information to themselves or pass it on to others. The manager must decide whether the communication would be most effective if it is in writing or by a telephone call or a face-to-face conversation or a combination of these modes. Managers can also obtain valuable information from the grapevine and use it for decision-making. In addition. managers may need to intervene. Transactional Communication Wenburg and Wilmont suggest that instead of communication being "upward" or "downward" which is intercommunication. They can hold open meetings and objectively discuss the issues that are being informally discussed already.

#65 . • There may be professional jealousy resulting in closed channels. Some of the perceptual situations that may distort a manager's assessment of people resulting in reduced effectiveness of the communication are: • A manager may perceive people to belong to one category or another as stereotypes. Perception Perception relates to the process through which we receive and interpret information from our environment and create a meaningful word out of it. Ambiguity in use of words will lead to different interpretations. could lead to two interpretations. A pleasant smile may make a positive first impression. Interpersonal Barriers There are many interpersonal barriers that disrupt the effectiveness of the communication process and generally involve such characteristics that either the sender or the receiver can cause communication problems. Organizational Structure Communication may be blocked. • A manager may make total assessment of a person based on a single trait. but it not clean and decent. a nightclub advertisement sign. For example. Hearing what we want to hear and ignoring information that conflicts with what we know can totally distort the intent or the content of the message. chaotic or distorted if the channels are not clear or if there are bottlenecks. specially for multi-national companies and enterprises. Hence the organization structure should be such that the chain of command and channels of communication are clearly established and ithe responsibility and authority are clearly assigned and are traceable. either because the sender believes that the receiver does not need all the information or that the receiver is better off not knowing all aspects of a given situation. The result could be confusion or some important information may be laid aside for the purpose of convenience. The choice of a wrong word or a comma at a wrong place in a sentence can sometimes alter the meaning of the intended message. It could also be that the receiver is simply told what he wants to hear. Different people may perceive the same situation differently. • The secretary may forget to forward a memo. "clean and decent dancing every night except Sunday". For example.Improper or Inadequate Information Information must be meaningful to the employee and should be precise or to the point. Cultural Barriers The cultural differences can adversely affect the communication effectiveness. that there is no dancing on Sundays and second. Information Overhead Overload occurs when individuals receive more information than they are capable of processing. that there is dancing on Sundays. he may perceive women to be less efficient managers. • A manager may assume that his subordinate's perception about things and situations are similar to his own. First. Network Breakdown Network breakdown may be intentional or due to information overload and time pressures under which a communication has to be acted upon. rather than unique and distinct individuals. The words and paragraphs must be interpreted with the same meaning as was intended. Some factors contributing to such disruptions are: • The managers may withhold important negative information. Too little or too much information endangers effective communication. Physical Distractions Any physical distractions such as telephone interruptions or walk-in visitors can interfere with the effective face-to-face communication process. Some of these are: Filtering Filtering refers to intentionally withholding or deliberate manipulation of information by the sender. Semantic Barriers These barriers occur due to differences in individual interpretations of words and symbols. This perception limits the manager's ability to effectively respond to and deal with individual differences and differing views of work situations.

Feedback Barriers The final source of communication barrier is the feedback or lack of it. which helps in building a healthy relationship contributing to communication effectiveness. assisting receivers of messages in correct decoding and interpretation and providing an efficient and effective feedback system. then the receiver will scrutinize the message heavily and deliberately look for hidden meanings or tricks and may end up distorting the entire message. positive or negative. 2 Improve Listening Skills: Good listening habits lead to better understanding and good relationships with each other. and believe it specially if the message is related to the field of expertise. a manager must not assume that a particular word means the same thing to all people who use it. frustrated or depressed may be interpreted differently than when he is happy. • Summarize and restate the message after it is over to make sure about the content and the intent of the message. Some helpful hints in written communication are suggested by Robert Degise as follows: 3 #66 . Two-way communication. Feedback is the only way to ascertain as to how the message was interpreted. Extreme emotions are most likely to hinder effective communication because rational judgments are replaced by emotional judgments. A wellwritten communication eliminates the possibility of misunderstanding and misinterpretation. Conversely. Hence. trust and respect for the sender. avoids distrust and leads to trust and openness. • Ask questions to clarify any points that you do not understand clearly and reflect back to the speaker. The information is transferred more accurately when the receiver is given the opportunity to ask for clarifications and answer to any questions about the message. When writing message it is necessary to be precise thus making the meaning as clear as possible so that it accomplishes the desired purpose.Sender Credibility When the sender of the communication has high credibility in the eyes of the receiver. Similarly. otherwise you will not be able to grasp the meaning of the message in its entirety. • Do not prejudice or value the importance of the message due to your previous dealings and experiences with the sender or your perceptions about him. then the decoding and the interpretation of the message will lead to a meaning of the sender. designing proper messages. Listen for feelings in (he message content and respond positively to these feelings. • Make sure that there are no outside interruptions and interference during the course of conversation. the managers must make sure that they use the word in the same manner as the receiver is expected to understand it. otherwise it will create a barrier to proper understanding of the message. If the receiver has confidence. • Do not jump to conclusions before the message is over and is clearly understood. Some guidelines for effective listening are: • Listening requires full attention to the speaker. selecting appropriate channels for communicating these messages. Do not let your mind wander or be preoccupied with something else. your understanding of what has been said. Overcoming Communication Barriers It is very important for the management to recognize and overcome barriers to effective communication for operational optimization and this would involve diagnosing and analyzing situations. Multi-meaning Words Many words in English language have different meanings when used in different situations. if the source is believed to be an expert in a particular field then the listener may pay close attention to the message. The same message received when the receiver is angry. the message is taken much more seriously and accepted at face value. if the sender is not trusted. Emotions The interpretation of a communication also depends upon the state of the receiver at the time when message is received. Some of the steps that can be taken in this respect are as follows: 1 Feedback: Feedback helps to reduce misunderstandings. Develop Writing Skills: Clearly written messages can help avoid semantic and perception barriers. even though more time-consuming. • The language used tone of the voice and emotions should receive proper attention. Accordingly.

opinions and ideas in the fewest number of words possible. be specific and to the point. precise and to the point and free from distortions and noise. Brief and Precise The ideas to be communicated must be well planned and clearly identified. According to the studies conducted by J. thus contributing to communication effectiveness. Communication should be Comprehensive Communication should be complete so as not only to meet the present demands. the established channels must be used as required. Sense of Timing The message should not only be timely so that the decisions and actions can be taken in tie and when necessary. E-Mail and Internet have made the communication quick and convenient. Consider the Receiver's Interest Take the receivers interests into account. expressions and emotions exhibited. questions. mainly because of break through of the electronic technology and advent of computers. The management must always be helpful in carrying out the intended message of the communication. but also the timing of the message and the environmental setting in which the message is delivered and received is equally important. attentiveness to the receiver and so on. the organization. • Do not be boggart down by rules of composition: While the rules of grammar and composition must be respected. Consult with others who are involved in Planning the Communication If people have participated in the planning process. which leads to misunderstanding of the meaning or intent of the message. The people who are concerned must know exactly what they need and when they need the communication. it creates bickering. The communication flow and its spread must avoid bypassing levels or people. distrust. It should also be brief so that only necessary and sufficients meanings are provided. Accordingly. appropriate and accurate. When these concerned levels are omitted or bypassed. but be confident and definitive. • Write concisely: Use as few words as possible. but express your thoughts. Management should not only be sensitive to the needs and feelings of workers but also its promises should be supported by actions. • Be specific: Vagueness destroys accuracy. Avoid Credibility Gaps: Communication is a continuing process and the goal of the communication is complete understanding of the message as well as the creation of trust among all members of. This will eliminate ambiguity so that the message will not be subject to more than one interpretation. Mode of Delivery While delivering the communication. and then the receiver will be more responsive to the communication. Now cellular phones. openness and an atmosphere of trust builds healthy relationship and closes credibility gaps. Accordingly. The message will be lost if the words are complex and do not lend to a clear single meaning. and feedback. confusion and conflict. • GUIDELINES FOR EFFECTIVE COMMUNICATION These guidelines are designed to help management improve their skills in communicating so as not only avoid any barriers to effective communication. Recently. Luft. Integrity The communication must pass through the proper channels to reach the intended receiver. The Ideas and Messages should be Clear. Do not be brief at the cost of completeness. It should also fee based on future needs of the organization as well as individuals.4 Keep words simple: This will reduce your thoughts to essentials and the message will be easier to understand for the receiver. Use proper Follow-up All communications need a follow-up to ensure that these were properly understood and carried out. they should not take priority over the ultimate purpose of the communication. It is now even possible for managers from different cities #67 . they would be highly motivated to give active support to such communication. The written communication should be polite and unambiguous. Accordingly. but also to strengthen the basis for optimum results which depend upon the clear understanding of the desired communication. the management must be sincere and should earn the trust of the subordinates. The success of the communication also depends upon the tone of the voice if the communication is verbal. The message must be clear. The management must clarify any part of the communication that may be necessary and must encourage comments. avoid negative statements like. "I am not sure it will work". The response and feedback to the communication should determine whether the action to the communication has been prompt. the nature of managerial and organizational communication has changed dramatically.

to meet by teleconferencing method without leaving their offices. psychologists are beginning to discover some problems associates with these new advances in communication. At the same time. #68 .

Leadership influences behavior of the individuals.LESSON -14 LEADERSHIP IN ORGANIZATIONS Learning Objectives After reading this lesson. #69 . Leaders are the people who are accepted by the other individuals. • Leadership directs the individuals to attain the tasks assigned to them by following the instructions of their leaders. "Leadership is the process of influencing the behavior of others in the direction of a goal or set of goals or. toward a vision of the future”. According to Keith Davis. • A leader must have the capacity to recognize the potentials of the individuals and transform them into realities. "Leadership is the art or process of influencing people so that they will strive willingly towards the achievement of group goals". Leadership provides direction and vision for future to an organization. Leader influences his followers and followers also exercise influence over his leader. Leadership acquires dominance and the followers accept the directives and control of a leader. to motivate behavior toward the achievement of those goals and to help define group or organizational culture. • Leadership is continuous process of influencing behavior. leadership is the set multi characteristics attributed to those who are perceived to be leaders". DEFINITION Leadership is the art of influencing and inspiring subordinates to perform their duties willingly. Importance of Leadership The following points can judge the importance of leadership: • A leader should act as a friend of the people whom he is leading. It encourages liveliness in the group. According to Grey and Starke. managers play the role of leader and acquire leadership of subordinates. their efforts towards the achievement of organizational goals and activate the individuals of an organization to make them work. more broadly. • A leader possesses qualities to influence others. Individuals can be induced to contribute their optimum towards the attainment of organizational goals through effective leadership. leaders are people who are able to influence the behavior of others without recourse to threats or other forms of force towards the individuals. guidance. you should be able to understand: • • • The meaning of leadership The various types and theories of leadership The importance of leadership in organizations Leadership is an integral part of management and plays a vital role in managerial operations. • Leadership gives the individuals. • Leadership uses non-coercive methods to direct and coordinate the activities of the individuals of an organization. According to Peter Drucker. the building of man's personality beyond its normal limitations". competently and enthusiastically for achievement of groups objectives. the raising of man's performance to higher standard. given group for a pre-determined period of lime. a vision for future. • Leadership is a group activity. FEATURES OF LEADERSHIP The features of leadership are as follows: • Leadership is the process of influencing behavior of individuals of an organization. In business and industrial organizations. as a superior person to them. "Leadership means the lifting of man's visions to higher sights. As a property. "Leadership is both a process and a property. “Leadership is the process of encouraging and helping others to work enthusiastically towards objectives”. As a process. Thus. It has an ability to attract others and potential to make them follow the instructions. and confidence to the employees and helps in the attainment of goals in much easier way. According to Wendell French. it is used for noncoercive influence lo shape up the goals of a group or organization. • A leader should have the confidence of the individuals of the organization. • Leadership is meant for a given situation. It provides direction. According to Koontz and O'Donnell.

as a lot of time is wasted while taking the views from the employee. who feel that. Benevolent Autocrat: Benevolent autocrat leader uses positive influences and develops effective human relations. A leader must be able to build up a high morale among the individuals of the organization. • All leaders are not managers and all managers are leaders. A leader thinks that he is the only competent person in the organization. He creates a feeling in the minds of his subordinates and workers that they are participating in decision-making processes. He has all the powers to make decisions. Leadership has an emotional appeal while management acts on rationality. He makes all decisions and does not disclose anything to anyone. negative method of motivation.e. There is no participation from the subordinates in decision-making. their opinions arc honored and they are given importance. He praises his employees if they follow his orders and invites them to get the solutions of the problems from him. TYPES OF LEADERSHIP Following are the main types of leadership: Autocratic or Authoritarian In this type of leadership. The following are the differences between the leadership and the management: • Management takes rational and logical decisions while leadership takes decision on expectations of the followers. is a process of influencing the behavior of the people to attain their assigned tasks. Hard Boiled or Strict Autocrat: Leader.• • • • • • • A leader must be able to unite the people as a team and build up team spirit. Any negligence on the part of subordinates results in punishment. Exchange of ideas among subordinates and with the leader is given encouragement. Free rein leadership may be effective if members #70 . • The management establishes relationship through a lawful authority while leadership establishes relationship through power. Manipulative Autocrat: Leader. therefore. It improves quality of decision as it is taken after due consideration of valued opinions of the talented group members. there is virtual absence of direct leadership. There is complete delegation of authority to subordinates so that they can make decisions by themselves. A leader should motivate his people to achieve goals. Laissez-faire or Free Rein In this type of leadership. It is. According to Edwin B.. Participation or involvement of the employees in the decision-making process is also rewarded. authority is centered in the leader himself. Filippo. The demerit of this type of leadership is that it takes more time to arrive at a decision. under such type uses negative influence and expects that the employees should obey his orders immediately. Leaders encourage discussion among the group members on the problem under consideration and arrive at a decision depending on their consent. organizing. He wants immediate obedience of his orders and instructions. It develops a sense of confidence among subordinates and they derive job satisfaction. 3. very time consuming. Difference between Leadership and Management Leading and managing go together but some differences exist between the two. A leader should try to raise the morale of the individuals and should maintain ethical standards among the individuals. He feels happy in controlling all the actions of his subordinates. It is. therefore. Leaders give more freedom to their group members. • Managers have formal authority but the leaders have no such authority. Leadership on the other hand. But he makes all decisions by himself. He is known as paternalistic leader. there are following three types of leaders in autocratic: 1. known as "no leadership at all". Absence of leadership may have both positive and negative effects. A leader should be able to maintain discipline among his group and develop a sense of responsibility. He uses coercive measures and adopts. leaders consult their groups and consider their opinion in the decision-making process. there is a complete centralization of authority in the leader. Democratic or Participative Democratic or Participative leadership is also known as group centered or consultative leadership. In this type of leadership. under such type is manipulative in nature. 2. i. He is quite rigid on performance. directing and controlling the activities of others to attain the organizational objectives. • Management is a process of planning. Non-compliance of his orders results in punishment. A leader should act as a link between the work groups and the forces outside the organization. Non-compliance of his orders also results jn punishment. A successful manager must possess both the managerial and leadership qualities.

he has to face the hatred of the employees at times. psychological and physical traits of strong leaders. (b) Behavior Theory #71 . • It does not explain the leadership failures. • It is difficult to define traits in absolute terms. assertiveness. above average height. in spite of the required traits. but can only be acquired by training. Due to such attitude. initiative and understanding of interpersonal human relations. Some of the weakness of this theory is: • All the traits are not identical with regard to essential characteristics of a leader. The employees. the leadership traits might include intelligence. Members may feel insecure and develop frustration for lack of decision-making authority. determination and their attitude towards the organization. It is the rules that determine their performance. knowledge and competence of the leaders. The employees feel relieved as they are working under a person who is expert and can handle the situation without any problem. They exhibit different behaviors as they differ in attitude and outlook also. • Some traits may not be inherited. Paternalistic The paternalistic leadership believes in the concept that the happy employees work better and harder. The leader must understand their behavior and accordingly can make use of the various types LEADERSHIPS. They differ in quality.of the group are highly committed to their work. The assumption made in this theory was that some basic traits or set of traits differentiates leaders from non-leaders. A manipulative leader is quite selfish and exploits the aspirations of the employees for his gains. He handles the situation skillfully with his talent. • Thus. there is no difference between the management and the administration in this type of leadership. He knows very well the needs and desires of the employees but he does very little to fulfill them. Possession of these traits helps the individuals to gain possession of leadership. The negative aspect shows that the leader is not competent enough to lead his group effectively. He should remember that leadership is situational. Since all individuals do not have these qualities. If situation changes. • It does not identify the traits that are most important and that are least important for a successful leader. It maintains that the fatherly altitude is the right one for better relationship between the manager and the employees. The behavior of a leader is determined by the rules. In modern organizations. regulations and procedure to be followed under his leadership. The existence of these traits determines the importance of leadership. Bureaucratic This type of leadership emphasizes the rules and regulations of an organization. For example. THEORIES OF LEADERSHIP A number of theories and approaches to study leadership have been developed. themselves cannot do anything in this regard. • Trait Theory • Behavior Theory • Contingency Theory (a) Trait Theory This theory of studying leadership is taken into consideration to analyze the personal. There are broadly three theories of leadership. • It has been found that many traits exhibited by leaders are also found among followers without explaining as to why followers could not become leaders. The leader and the subordinates both follow these rules and regulations. the use of leadership among its various types also changes. This type of leadership is based on the ability. A successful leader is the one who assesses the situation. The manager should assess the situation and adopt that type of leadership. studies the psychology of the subordinates and adopts the most useful type of leadership to lead the people at work to accomplish the organizational goals. which suits that situation. human resources vary in terms of skill. the trait theory has been criticized for lack of conclusiveness and predictability. Therefore. Everyone within the organization should work together like a family. self-confidence. Manipulative This type of leadership manipulates the employees to attain their assigned tasks. Expert Leadership The expert leadership emerged as a result of complex structure of modern organizations. knowledge and competences. only those who have them would be considered potential leaders.

a particular leader could have higher ratings on both measures. In. Michigan. This factor is determined by leader-member relations. The LPC measure is controversial because researchers disagree about its validity. three of the scales Fielder uses in the LPC are: Helpful -------------------. friendly and supportive. a leader is either task-oriented or relationship-oriented while leading his group members. the contingency factor favours the situation from the leader's point of view. which focuses on performances and efficient completion of the assigned tasks.  Consideration behavior: In consideration behavior. (c) Contingency Theory The main assumption of contingency theory is that the behavior of an appropriate leader varies from one situation to another. A job-centered leader interacts with group members to explain task procedures and oversee their work. which are as follows:  Initiating-structure behavior: In initiating-structure behavior. began studying leadership in the late 1940s. their studies at International Harvester found that leaders rated highly on initiating structure behavior have higher performing but dissatisfied sub-ordinates. Thus. Fielder identified two types of leadership: task-oriented and relationship-oriented. the Michigan studies identified two forms of leadership behavior. The Michagan researchers thought a leader could show signs of one kind of behavior. they assumed the behaviors to be independent variables.Frustrating 8 7 6 5 4 3 2 1 Tense ------------------.Interesting 1 2 3 4 5 6 7 8 The leader's LPC score is (hen calculated by adding up the numbers below the line checked on each scale. They are discussed as below:  Job-centered leadership behavior : The first was called job-centered leadership behavior. by a positive or negative adjective. contingency theory is to be studied. low ratings on both or high ratings on one and low on the other. if the situation also remains same. Most experts now agree that no single set of traits or behaviors appears to be common to all good leaders. which means that a leader could exhibit varying degrees of initiating structure and consideration at the same time i. The motive of a contingency theory is to identify key situational factors and to specify how they interact to determine appropriate behavior of a leader The three most important and widely accepted contingency theories of leadership are as follows: • The LPC theory: The first contingency theory of leadership is Fred Fielder's Least Preferred Co-worker (LPC) Model. but not both. high performance standards to be accomplished. According to Fielder.Relaxed 12345678 Boring ------------------. Depending on broad discussions with both the managers and sub-ordinates. the leader shows concern for subordinates feelings' and ideas. However. The researchers used to believe that the leaders in possession of both types of behavior are most effective. which focuses on. He attempts to establish a warm. A high total score is assumed to reflect a relationship orientation and a low score. • The Ohio State Studies: At about the same time. Rather.other words. The Ohio State leadership studies also identified two major kinds of leadership behaviors or styles. the leader clearly defines the leadersubordinate roles so that everyone knows what is expected. the leader's primary concern is the welfare of the ordinates. This theory can be more clearly understood with the help of following case studies. The universal approaches to leadership can help managers examine their own leadership characteristics and match them against the traits most commonly identified with good leaders. This is because some of the LPC measures show whether the score is an index of behavior. a group of researchers at Ohio State also began studying leadership. It also identified the need of consistency of behavior of good leaders. For example. The Ohio State researchers found that a leader’s behavior remains consistent over a period of time. a task orientation by the leader. personality or some other unknown factor.The behavioral theory assumed that effective leaders behaved differently from ineffective leaders. • The Michigan Studies: Researchers at the University of. The leader also establishes formal lines of communication and determines how tasks will be performed. Fielder used the Least Preferred Co-worker (LPC) scale to measure the type of leadership. whereas leaders rated highly on consideration structure had lower-performing sub-ordinates who showed signs of higher satisfaction. In order to understand the full complexity of leadership. The most obvious difference between Michigan and Ohio State studies is that the Ohio State researchers did not position their two forms of leader behavior at opposite ends of a single continuum. task-structure and position-power.e. A leader is asked to describe characteristics of the person with whom he or she is least comfortable while working.  Employee centered leadership behavior: The second behavior was identified as employee centered leader behavior. This can be done by developing a cohesive work group and ensuring that employees are satisfied with their jobs. which are discussed as below: #72 . Fielder believes that a leader's tendency to be task-oriented or relationship oriented remains constant. But the researchers could not come up with one best combination of behavior suitable to all the situations. They can do this by marking in a set of sixteen scales at each end. led by Rensis Likert.

the leader will have to play a major role in guiding and directing the group's activities. if they do not like one another. high structure and strong power. The figure 14. High structure is more favourable for the leader and low structure is unfavorable. the leader may use participative behavior by which he can participate with employees in making decisions and take their suggestions as well. • A final point about LPC theory is that. recommend employees for promotion or demotion. complex. which are beyond the control of subordinates. when structure is high. For instance. to look after their needs and ensuring that they get the rewards and benefits. For instance. a risk-oriented leader to lie most effective. Fielder argues that any particular-type of leadership. respect or confidence and. easily understood. When the task is non-routine. the leader will not have to pay much attention. the leader may use achievement-oriented behavior to encourage continued high performance of sub-ordinates. these environmental factors can create uncertainty for employees. supportive. • Task-structure: Task-structure is the degree to which the group's task is clearly defined. When the situation includes good relations. He may also adopt supportive behavior to encourage group cohesiveness. Path-goal theory says that a leader can motivate subordinates by influencing their expectations. Finally. It includes task structure. relations will remain good. Leaders can motivate sub-ordinates by making clear what they have to do to get the reward they desire. strong position power is favourable and weak position power is unfavorable. In other words a leader cannot change his behavior to fit a particular situation. while leading a new group of sub-ordinates. • Position-power: Position-power is the power vested in the position of a leader in an organization. which is measured by the LPC is inflexible and cannot be changed. • #73 . However. directive leadership is less effective than when structure is low. structure is assumed to be low. the positionpower is weak. If there is little trust. administer rewards and punishment. If the task structure is high. If the leader has the power to assign work. relations will remain bad. LI relationshiporiented leader is considered to be most effective. the primary work group and the formal authority system. respect. (d) The Path-Goal theory The path-goal model of leadership was introduced by Martin Evans and Robert House. Environmental characteristics are factors. with no standard procedures and precedents. the structure is assumed to be high. When the task is routine. and unambiguous and when the group has standard procedures. position-power is assumed lo be strong. According to the path-goal theory. A leader who helps employees reduce such uncertainty can motivate them. From the leader's point of view. participative and achievement-oriented.Leader-member relations: A Leader-member relation refers to the nature of relationship between the leader and his work group. If the leader and the group enjoy mutual trust. Good relations are assumed to be favourable and bad relations unfavorable.1 shows the path goal model of leadership. when relations are good but task structure is low and position-power is weak. This model identifies four kinds of leader behavior: directive. If the task structure is low. According to this model managers can adjust their behavior to include any four kinds of leadership behavior mentioned above. the leader may be directive in giving guidance and instructions to them. If the leader does not have required powers. ambiguous. As the group becomes more familiar with the task and as new problems are taken into consideration. Fielder's contingency theory has been criticized on the ground that LPC measure lacks validity and that the assumption about the inflexibility of the leader's behavior is unrealistic. confidence and they like one another. The path-goal model assumes that leaders can change their style or behavior to meet the demands of a particular situation. Sub-ordinates do not usually need their boss to repeatedly tell them how to do a routine job. Fielder and his associates conducted various studies highlighting if a situation favors the leadership and group effectiveness or not.

which are CI and CII and the other one is group GII. This model has a much less focus than the path-goal theory. It helps a leader to determine the extent. e. As summarized in the following table. there are two autocratic types of leadership. C II Manager and subordinates meet as a group to discuss the situation but the manager makes the decision. Decision acceptance is the extent to which employees accept and are loyal to their decisions. Two of them are used when the problem affects the entire group. Sub. #74 . The appropriate leadership depends on the situation. to which employees should participate in the decision-making processes. CI Manager shares the situation with individual subordinates and asks for information and evaluation.Leaders do not always have control over environmental factors. The VYJ theory argues that decision-effectiveness is best judged by the quality of decision and by the acceptance of that decision on the part of employees. G = Group The situation is defined by a series of questions about the characteristics or attributes of the problem under consideration. a new office for that individual only. which are AI and All. To address the questions. to adjust the environment and to motivate sub-ordinates. AII Manager asks for information from subordinates but makes (he decision alone. For example. (e) The Vroom-Yetton-Jago Theory (VYJ) The Vroom-Yetton-Jago model was first introduced by Vroom and Yetton in 1973 and was revised by Vroom and Jago in 1988. the VYJ theory suggests that leaders adopt one of five decision-making leaderships. G II Manager and subordinates meet as a group to discuss the situation and the group makes the decision. To maximize decision effectiveness. two consultative types of leadership. Decision-Making Styles in the VYJ model Decision Style Description AI Manager makes the decision alone. C= Consultative. Subordinates do not meet as a group and the manager alone makes the decision.ordinates may or may mil be informed about what the situation is.g. A = Autocratic. but the theory emphasizes that leaders can use the control they want. a decision about the facilities to be given to employees in a new office affects the entire group and the other two are appropriate when the decision affects a single individual only. the leader uses one of the four decisions.

evidence so far indicates that this model can help leaders to choose the most effective way to include the sub-ordinates in decision-making. when policies are formal and rigid. the leader needs to move gradually from high to low task orientation. trust and liking. the subordinate may not need or want support. HRD. the research-based skills identified by Whetten and Cameron seem to be most valuable. doctors and attendants act immediately without waiting for directive or supportive behaviors of leaders in an emergency ward. Transformational Leadership Another new concept of leadership goes by a number of labels: charismatic leadership. For example. increases teaming experiences and inspires new ways of thinking. These people constitute the ‘in-group’. leadership may not be needed. when a patient is admitted to an emergency room in a hospital. employees with much ability and experience may not need to be told what to do. maturity includes motivation. symbolic leadership and transformational leadership. a strong need for independence by the sub-ordinate may result in ineffectiveness of leaders’ behavior. • Life Cycle Model: The life cycle model suggests-that appropriate leader behavior depends on the maturity of the followers. Many leaders are familiar with the life cycle theory because it is both simple and logical. the leader's employee-oriented behavior should start low. The substitute concept identifies the situations where the characteristics of the subordinates. Those in the 'ingroup' receive more of the manager's time and attention and are better performers. Several characteristics of the sub-ordinate may serve to replace or change . The followers of a charismatic leader identify with the leader's beliefs. training. accept. The other models are as follows: • Vertical Dyad Linkage Model: This model stresses the . The model suggests that as followers become more mature. Charismatic people attract followers and this type of leader has great power over his or her followers.fact that leaders actually have different kinds of working relationship with different subordinates. the widely recognized organizational behavior . involving communicating supportively. communication. Leadership Skills There is now recognition in both leadership theory and practice of the importance of skills. They do not take into consideration. Simultaneously. For example. nurses. the task and the organization replace leaders' behaviors. the situations where the leadership is not needed. Although the VYJ model is too new to have been thoroughly tested. Substitutes for Leadership The existing leadership theories and models try to specify what kind of leader’s behavior is appropriate for different situations. answering the questions about the problem attributes and developing a strategy for decisionmaking participation. it has received little scientific support from researchers. creativity. In this context. Charismatic leaders are self-confident and can influence others. the subordinate may not need direction.techniques such as. the availability of feedback and intrinsic satisfaction. The Vertical Dyad Linkage model suggests that leaders establish special working relationships with some subordinates based on some combination of respect. one of each is to be used when the decision has to be made quickly because of some urgency and the others arc to be used when the decision can be made more slowly and the leaders wants to use the opportunity to develop subordinates' decision-making abilities. increase at a moderate rate and then decline again. For example. inspirational leadership. Finally. Research shows that people in the ‘in-group’ are more productive and more satisfied with their work than ‘out group’ members. Characteristics of the task that may substitute the leadership include. Charisma is a form of interpersonal attraction. Although there are many skills. motivating others and managing conflict. Computer software has been developed to aid leaders in defining the situation. competence and experience. such as cultural flexibility. The VYJ model was criticized because of its complexity. when the job is routine and simple. managing stress and solving problems creatively. Each manager-subordinate relationship represents one vertical dyad. This is a leadership that transmits a sense of mission. inflexibility and a rigid reward structure. job design and leaders can also effectively use behavioral management. trust and obey the leader without questioning him and thereby contribute toward the success of the organizational goals. #75 . who receive less of leader's time and attention. the interpersonal skills model. involving developing self-awareness. OTHER CONTINGENCY APPROACHES In addition to these three major theories. there are other contingency models or theories developed in recent years.Moreover. For example. and self-management of learning. how leaders should behave and perform effectively. Their personal skills model. When the task is challenging. However. Organizational characteristics that may substitute for leadership include formalization group cohesion. Similarly. Other subordinates remain in the ‘out-group’s. are especially comprehensive and useful. gaining power and influence.the behavior of the leaders. EMERGING PERSPECTIVES ON LEADERSHIP IN ORGANIZATIONS The new perspectives that have attracted attention are the concepts of substitutes for leadership and transformational leadership.

each individual can sense and determine how much stress is functional for an individual to operate in a productive manner. depression in the economy can create negative stress for sales personnel. Interpersonal relationships are a second source of job stress. For every individual there is an optimum level of stress under which he or she may perform to full capacity. and Hunt (1980) and Sckaran (1986). Rice. If the stress experienced is below this optimum level. because they will be much more anxious about making sales commissions and sales quotas. There are both positive and negative stresses that come from our work and nonwork lives. and excitement. The more successfully one handles a stressful situation without panicking or getting overwhelmed by it. Employees may feel anxious about their new work assignments. Some new work situations can bring us positive challenges and excitement. point. If one operates in a very low stress environment and constantly experiences boredom. psychiatrists. how much time he or she deals with clients or consumers. then the individual gets bored. they also anticipate them eagerly and look forward to the additional challenges. Psychological withdrawal will result in careless mistakes being frequently made. that stress will be carried over to the home. which can spill over into the work environment. the work and non-work domains of one's life are closely interrelated. which may ultimately lead to turnover. rather than feeling controlled by the situation they are facing. Thus. How much contact an individual has with coworkers and managers. The stresses and strains experienced in one domain are carried over to the other. internal locus of control and selfesteem seem to effectively handle a high level of stress. This makes it possible for them to manage their environmental stress without experiencing its harmful effects. and apathy sets in. The way the job is designed. the more confidently will the individual face further stressful situations. if one experiences stress at work. rewards. Third source is problems in personal lives. In these cases. For example. and researchers in management have all studied its causes and its symptoms. you should be able to understand: • The meaning of stress • Various sources of stress • Various effects or consequences of stress • Various methods of managing stress The nature of stress has been studied by scholars in a wide range of academic disciplines. An individual possessing high degree of tolerance for ambiguity allows him to experience very little anguish while operating under conditions of insufficient information or in an uncertain environment. and how pleasant those interactions are all influences of how much stress an individual experiences at work. Stress is defined as "the reactions of individuals to new or threatening factors in their work environments”. and thinking of things other than work during work hours. Thus. the amount of time pressure an individual faces and the amount of expectations others have of a person at work can all lead to job stress. Physical withdrawal will manifest itself in increased rates of tardiness and absenteeism. promotions to new jobs present employees with positive stress. among others.LESSON -15 STRESS MANAGEMENT Learning Objectives After reading this lesson. The positive stress is also called the eustress. Physicians. the person is likely to psychologically or physically withdraw from work. the new and uncertain job situations create positive stress. Those with high self-esteem also handle stress with ease since a high self-esteem increases the confidence and enables them to deal with stressful situations with calmness and clear thinking. and have defined the term in a variety of different ways. the motivational level to work reaches a low. Stress can be either positive or negative. forgetting to do things. For example. it is possible to raise one’s capacity to handle in different situations. People with an internal locus of control also handle stress well since they feel they are in control of the situation. SOURCES OF JOB STRESS • Job Characteristics o Role ambiguity o Role conflict o Role overload o Ethical dilemmas • Interpersonal Relationships #76 . As pointed out by Near. there are certain other types of work that are very threatening and anxietyarousing. Research indicates that those who possess high tolerance of ambiguity. Though the optimum stress level is different Form different individuals. However. adding further tension to an already stressful work situation. One major source of job stress is the job itself. SOURCES OF STRESS Stress is a reality of our everyday life.

This will be especially true for those who have strong moral values of right and wrong and a deep sense of personal and corporate social responsibility. this naturally imposes stresses and strains on the individuals who are responsible for getting the job done. employees develop a generalized anxiety. technology. • Role Underload: Role Underload is the condition in which employees have too little work to do or too little variety -in their work. With the recent increase in mergers and acquisitions among major organizations. When interpersonal relationships at work are unpleasant. • Organizational climate: The overall psychological climate of the organization can create stress. salespeople in a store with no customer. supervisors. which results in stress. Three aspects of interpersonal relationships at work. are as follows: • Amount of contact with others: Jobs vary in terms of how much interpersonal contact is built into them. Tensions arise because one might have to contend against one's own colleagues who might be close friends. This inconsistency of expectations associated with a role is called role conflict. the financial market and so on. heal. standing around all day with nothing to do. Working under time pressure is especially stressful.• • o Amount of contact with others o Dealing with people in other departments o Organizational climate Organizational Factors Personal Factors o Career concerns o Geographical mobility o Rate of life change Job Characteristics A major source of job stress is a person's role in the organization. budget. or clients. • Ethical Dilemmas: Ethical dilemmas such as whether or not one should report the observed unethical behaviors of another person can cause extreme levels of stress in individuals. could be said to experience role underload. When one has to produce and perform with inadequate resources on a long-term basis. in conflict. • Insufficient resources such as time. which have a negative impact on job stress. Role ambiguity is anxiety arousing among employees that leads to job stress. raw materials. A role is simply the set of expectations that other people in the organization have for an individual. and he or she experiences stress. • Environmental factors of stress include sudden and unanticipated changes in the marketplace. role underload leads to low self-esteem. • Lack of career promotion in organizations may be sometime cause stress. may cause stress. Ironically. People in other departments do not always have an adequate understanding of jobs outside their own areas. • Role Ambiguity: When there is a lot of uncertainty surrounding job definitions or job expectations. a diffuse feeling of dread about upcoming meetings and interactions. The expectations others have of an employee arc sometimes unclear. coworkers. or hostile exchanges. which can cause stress. • Role Conflict: Often employees discover that different groups of people in an organization have widely varying expectations of them. Interpersonal Relationships Another major source of stress in organization is poor interpersonal relationships with supervisors. • Amount of contact with people in other departments: Having contacts with people outside one's own department creates a special sort of stress. • Role Overload: Role overload is a situation in which employees feel they are being asked to do more than time or ability permits. and that they cannot meet all those expectations. more and more employees arc experiencing job stress as a result of role ambiguity. coworkers. space or manpower also induce stress in the work environment. people experience role ambiguity. Organizational Factors Following are the organizational factors that cause stress in individuals: • Work environment factors such as noise. Too much prolonged contact with other people can cause stress. For example. employees are continually tense and this causes stress. For example. customers and suppliers expect an employee to behave in certain predictable ways. poor lighting. subordinates. Personal Factors #77 . increased frequency of nervous symptoms and increased health problems. distant. When day-today life in an organization is marked by unfriendly. or too high for the employee to meet within the time allotted. radiation and smoke are stress-inducing agents. • Structural factors in the organizational setting such as staff rules and' regulations and reward systems. and may fear of reprisal and other undesirable consequences.

Since the body has only a limited capacity to respond to stress. They have more energy and patience for dealing with problems at work. high blood pressure. The stresses experienced by employees who take on critical roles and are responsible for safety can sometimes be detrimental to the public. navigator. mental blocks and inability to make decisions. • The behavioral effects arc manifest in such things as accident proneness. and other psychosomatic disorders. alienation from family members.. the mental health. It also leads to lost of customers because of poor worker attitudes.e. will have an adverse effect on their home life.e. Spouse abuse. METHODS OF MANAGING STRESS Stress is a factor that everybody has to contend with on a daily basis both in the work and non-work spheres of life. • The manifest health effects could be stomach disorders. drinking. depression. i. and withdrawal behaviors. There are several ways in which stress can be handled so that the dysfunctional consequences of stress can be reduced. if employees are having some personal problems. Breaking-down the job into various components clarifies the role of the job for the entire system. short attention span. poor image and loss of future business are enormous. the ability lo function effectively in one's daily life. excessive eating. Consequences for the Family Negative stress. Needless to say that the costs of employee stress to the organization in terms of lost profits. Consequences to Organizations The adverse consequences on an organization include low performance and productivity. eczema. A second career concern that can cause employees stress is status incongruity. high rates of absenteeism and poor decision-making. or that of an airline pilot. their families and for the organizations they serve. and anger. asthma. nervousness. This also helps to eliminate reduction of work and thus lowering down the stress level. Some of them are: Role Analysis Technique (RAT) The Role Analysis Technique helps both the manager and the employee to analyze the requirements and expectations from the job. i. and even divorce could result from dysfunctional coping mechanisms. and even destructive and aggressive behaviors resulting in strikes and sabotage. dryness of throat. they are more likely to be upbeat and optimistic. Sometimes experiencing the stress may cause aggressive behaviors on the part of the individual. depression. The transferred employees are likely to feel out of control at work. they might be more tense or distracted when they go to work. and experience their new work environments as unpredictable.Employees’ personal lives have a marked effect on their lives at work. Job Relocation Job relocation assistance is offered to employees who are transferred. having jobs with less status. increased alienation of the worker from the job. impulsive behaviors. • Geographical Mobility: Geographical moves create stress because they disrupt the routines of daily life. Effects on the Individual The impacts of distress on individuals are of following types: • The subjective or intrapersonal effects of stress are feelings of anxiety. power and prestige than they think they deserve. which is handled by individuals in dysfunctional ways. boredom. EFFECTS OR CONSEQUENCES OF JOB STRESS Negative stress has unpleasant consequences for them. On the other hand. such as drinking or withdrawal behaviors. apathy. smoking. #78 . or air traffic controller may result in serious accidents. If things are going well personally. These arrangements help to reduce the anxiety and stress for the moving family. will also decline as excessive stress is experienced. When geographical moves arc undertaken as part of a job transfer. • The cognitive effects include poor concentration. For instance. In addition. the moves can be even more stressful. fatigue. the stresses experienced by a train driver or railway guard. child abuse. and excessive sweating. it is important for individuals to optimally manage their stress level to operate as fully functioning human beings. • The physiological effects can be seen in increased heart and pulse rate. too. Factors that influence how much stress people bring from their persona! lives to the work setting are as follows: • Career Concerns: One major career concern that can cause stress is lack of job security. by finding alternative employment for the spouses of the transferred employees and getting admissions in schools for their children in the new place.

arranging group meditation programs. to listen to employees’ problems more effectively. Many companies invest large sum of money in gym and sport facilities for maintaining the health of the employees. Time Management Another way of coping with stress is to manage time more effectively. Career Counseling Career Counseling helps the employee to obtain professional advice regarding career that would help the individual to achieve personal goals. (hat they should acquire. #79 . participants are given materials to help them identify the major sources of stress in their own lives. Employee Assistance Program Another widely used strategy is the employee assistance Programs. These include counseling employees who seek assistance on how to deal with alcohol and drug abuse. Delegation Another way of coping with job stress is to delegate some responsibilities to others. the employees who consider their careers to be important can reduce their stress levels by becoming more realistic about their options and can start preparing themselves for it. The emphasis on supervisory training Program is how to prevent job stress. Then. In lectures and seminars. dealing with marital and other family problems. Managers are trained to give better performance appraisals. Delegation can directly decrease workload upon the manager and helps to reduce the stress. handling conflicts at the work place.Recreational Program Providing recreational facilities. So it is necessary that some help should be provided before doing the work that would lead to much efficient. and some strategies for dealing with that stress more effectively. time management and interpersonal skills workshops. help to reduce the stress levels of the employees. It would also reduce anxiety and stress among the employees. participants are given a basic understanding of the causes of stress and its consequences. These programs include biofeedback. It also makes the employees aware of what additional educational qualifications or specialized technical training. Health Maintenance Probably the most frequently used organizational stress management program is health maintenance. ! More Information and Help Some new employees have to spend more time on a job than necessary because they are not sure what they are doing. Supervisor Training Another type of stress management Program that organizations are experimenting with is supervisor training. which offer a variety of assistance to employees. and to communicate job assignments and instructions more clearly. By becoming knowledgeable about the possible avenues for advancement. People can learn to get better organized so that they can do their work more efficiently. if any. Individual Stress Reduction Workshops Some organizations have also sponsored individual stress reduction workshops for their employees. effective work. meditation to career counseling.

It can be a factor in almost any organizational decision. it tends to create resentment and hostility and therefore is usually detrimental to the organization in the long run. However. POWER AND AUTHORITY Sometimes power and authority is used synonymously because of their objective of influencing the behavior of others. Although the use of coercive power is often successful in the short run. Legitimate power is similar to formal authority and hence it can be created. A person with referent power may have charisma and people who respect that person are likely to get emotionally involved with the respected person and identify with. suspension. The structure of the organization also identifies the strength of the legitimate authority by position location. But stilt. Power is a factor at all levels of most organizations. demotion or other method of embarrassment for the people. higher-level positions exercise more power than lower-level positions in a classical hierarchical organizational structure. he is likely to have more power. coercive. Legitimate Power A person's position within organization provides him with legitimate power. It is the potential ability of a person or group to influence another person or group. • Understand how people use power • Discuss how people use political behavior in organizations • Understand the techniques of political behavior Power is easy to feel but difficult to define. Organizational rewards include pay. People with referent power are often #80 . Referent Power A person who is respected by certain others for whatever reason has referent power over those people. there is difference between the two. French and Bertram Raven identified five bases or sources of power: legitimate. Reward Power This type of power is the extent to which one person has control over rewards that are valued by another. on the other hand. It is the ability to get things done the way one wants them to be done. Since any person who is not easily replaceable has more power as compared to those who are easily replaceable. Power does not have any legal sanctity while authority has such sanctity.LESSON-16 POWER AND POLITICS Learning Objectives After reading this lesson. and knowledgeable. In such organizations. everyone knows who has the most power and few people challenge the power structure. Both formal and informal groups and individuals may have power. The greater the perceived values of such rewards. For instance. naturally they will obey and respect the superior. Perhaps. If the sub-ordinates view their superior as competent. This power occurs when the expert threatens to withhold his knowledge or skill. changed or withdrawn by the formal organization. To the extent. coercive power if they have control over some form of punishment such as threat of dismissal. One person has influenced another if the second person's opinions. granted. the greater the power. Authority is institutional and is legitimate. Power. is personal and does not have any legitimacy. Expert power is that influence which one wields as a result of one's experience. A manager who has complete control over such rewards has a good deal of power. Sources of Power John R. Influence can take many forms. a manager can cause psychological harm also lo an employee. Manager who uses praise and recognition has also a good deal of power. behavior or perspectives have changed as a result of their interaction. Organizations vary in how much legitimate power they grant to individuals. power is a crucial factor in influencing the behavior in organizational situation. it does not need an official position or the backing of an institution to have power. P. Coercive Power People have. accept and be willing to follow him or her. reward. Expert Power It is more of personal power than organizational power. you should be able to: • Know the meaning and sources of power. special skill or knowledge. A manager’s coercive power increases with the number and severity of the sanctions over which the manager has control. expert and referent power. promotions and valued office assignments. The organization gives managers the power to direct the activities of their subordinates. that a low-ranking worker has important knowledge not available to a superior.

the way the superior makes the request and follows it up are very important for ensuring the sub-ordinate’s future compliance and the growth of the superior's referent power. Therefore. warning an individual who uses copying machine to make -personal copies but firing someone who steals equipment from the organization. still the boss could be cordial and polite when making requests and should whenever possible explain why a particular task needs to be done. Managers who wish to maintain their credibility should make threats only when they intend to carry through on them and should never threaten a punishment that they cannot bring about. good managers must try to analyse the sources of their power and be careful how they use that power. Most of these suggestions imply that managers must be sensitive to employees concerns. However. Using Legitimate Power The use of legitimate power is seldom challenged in an organization. One of the most positive and subtle uses of referent power is the process of rote modeling. compliance and resistancewhen the leader uses the power. This imitation reflects the rising star's power over the imitations. Hence. directions and the other major parameters of the organization.imitated by others with the star's actions. This pursuit of power is political behavior. a number of people are seeking to gain and use power to achieve their own ends. resent it and losing respect for people using that type. For instance. The boss must follow normal procedures and make sure the request is appropriate. ‘as the structure and process of the use of authority and power to affect definition of goals. The following table list^ the five sources of . of power. Employees must know that they get rewarded for good work. Using Reward Power The manager. the manager must be able to identify the defect and must be able to help and educate him. The work of Gary Yukl provides both a way to predict the consequences of certain uses of power and guidelines for using power. managers must make people aware of how much they know. Decisions are not made in rational or formal way but rather through compromise accommodation and bargaining. coercion is now generally recognized to be the most difficult form of punishment to use successfully in an organization. Using Referent Power Leaders have traditionally strengthened their referent power by hiring employees with backgrounds similar to their own. a vicepresident whose secretary is busy should not assume that he or she can just ask a supervisor's secretary to drop all other work and type a letter. using coercive power is a natural response when something goes wrong. However a leader who relics on coercive power is very unlikely to have committed employees. Public punishment makes everyone uneasy and humiliating and hence should be done private. at any given moment. For instance. must be sure that the employee has actually done the job and done it well. enhance and use power and other resources to obtain their preferred outcomes in a situation where there is uncertainly or disagreement. Such by passing of the normal chain of command can cause hard feelings among all the people involved. before giving a reward. But often employees resist coercive power. Manager can use his expert power most effectively to address employee concerns. HOW PEOPLE USE POWER An individual manager may have power derived from any or all of the five bases of power and the manager may use that power in different1 ways. For instance. Though the secretary does what the boss asks. The secretary who understands the importance of a task will be more likely to work enthusiastically on it. Tushman defined politics. #81 . POLITICAL BEHAVIOR AND ORGANIZATIONAL POLITICS Power and politics are inextricably interwoven with the fabric of an organization's life. One great organizational scholar. the sub-ordinate usually complies without resistance. Managers who are insensitive to their employees may find that their legitimate power dwindles and that they must resort to coercive power. In any organization. considerate and creative can simply demonstrate those behaviors herself and her employees will likely imitate her actions. A respected manager who wants her employees to be punctual. the table shows that a leader's use of referent power will lead employees to be committed lo the leader’s project if they see that the project is important to the leader. when a superior asks a sub-ordinate to do something.i leader's power and some of the variables that are likely to lead to three general types of employee responses or outcomes-commitment. If a particular sales person faces any difficulty in selling a particular product and turns to manager for his help. A good manager will be such that the punishment fit the crime. attitudes and dress. Using Expert Power To gain power from their expertise. Using Coercive Power For some people. Organizational politics refers to the activities carried out by people to acquire.

Managing Political Behavior The very nature of political behavior makes it difficult to manage or even approach in a rational and systematic manner. However a manager who understands why people use political behavior and the techniques people usually employ has the best chance to manage political behavior successfully. People use political behavior in organizations in response to the five main factors: • Ambiguous goals • Scarce resources • Technology and the environment • Non-Programmed decisions • Organizational change FACTORS INFLUENCING POLITICAL BEHAVIOR Ambiguous Goals When the goals of a department or the entire organization are ambiguous then there is more room available for playing politics. Some people may use the ambiguity to manipulate the situation for their benefit. Scarce Resources When resources are scarce, people have the tendency to use political behavior to make sure that they get the biggest possible share of the resource. CHANGES IN TECHNOLOGY AND ENVIRONMENT Organizational effectiveness is largely a function of the organization’s ability to appropriately respond to external environment which is highly dynamic and generally unpredictable as well as adequately adopt to complex technological developments. Thus, political behavior is increased when the internal technology is complex and when external environment is highly volatile. Non-Programmed Decisions Sometimes, the companies have to make a lot of non-Programmed decisions on certain issues. These decisions are not based on clear standards and precedents, because such issues involve many factors and variables that are complex in nature. Hence decisions are taken on intuition, bunch and guesses and all these subjective feelings can be affected by political behavior. Organizational Change Whenever there are changes in the organizational structure and policies, peoples in powerful positions have the opportunity to play politics. These changes may include restructuring of a division or creating a division, personnel changes, introducing a new product line and all these changes influence political behavior when various individuals and groups try to control the given situation. It is widely accepted that managers have to be politicians in order to maintain their positions in the organizational hierarchy as well as serve the interests of their units. Pfeiffer, who has done extensive research on -the subject of power in organizations, states as follows: “If there is one concluding message, it is that it is probably effective and it is certainly normal that these managers do behave as politicians. If is even better that some of them are quiet effective at it. In situations in which technologies are uncertain, preferences are conflicting, perceptions are selective and biased and information processing capacities are constrained, the model of an effective politician may be an appropriate one for both the individual and for the organization in the long-run”. TECHNIQUES OF POLITICAL BEHAVIOR The most commonly used techniques of political behavior are: • Controlling information • Controlling lines of communication • Controlling agenda • Using outside experts : • Game playing • Image building • Building coalitions One technique of political behavior is to control the dissemination of critical information to others. The more critical (he information and fewer the people who have it, the stronger is political power base of those who possess these information.

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Controlling lines of communication is another political technique related to the flow of information. People who have some control over lines of communication can yield considerable political power. For example, the secretary may have considerable power in deciding who sees the boss and who does not at a given time. She may use this power in favoring those whom she likes and frustrating those against whom she may have it grudge. Controlling the agenda also gives a person power over information. The person who controls a meeting's agenda, for instance, may consistently put a particular item last on the list and then take up time so that meeting adjourns before considering the item. The opinions of outside experts and consultants often curry much weight in organizations and many consultants can be swayed by political interests. Consultants know who is paying them and even honest consultants are likely to give opinions consistent with those of their employer. Hence, hiring an outside consultant can be a clever political move. Game playing can range from fairly innocent to very manipulative. It involves people doing something insincere, but not outright illegal or unethical to gain political ends. For instance, a manager who does not want to answer a committee's tough questions may, for instance, avoid meeting by going out of the town on the day of meeting. Image building is creating positive impression reflected by the personality, appearance and style. Some of the factors that enhance a preferred image consist of being well dressed, having a pleasant smile, being attractive, honest, sociable and loyal to the organizational interests. In addition, always project an image of competence and selfassurance. Building coalitions or alliance is another technique of gaining political power. It is necessary to have the alliance with the right people. Coalition building can become simply a matter of quid pro quo: I will support you if you will support me. Managing Political Behavior Though it is virtually impossible to eliminate political behavior in organizations, it is possible to reduce it, if a manager understands the reasons for it and the techniques of political behavior. Politics when carried to the extreme can damage morale, create enemies, destroy loyalty, damper co-operative spirit and much time and energy is spent planning attacks and counter attacks which are detrimental to organizational health. Accordingly, combating politics must be undertaken by the top management and some of the steps that can be undertaken are: open communication, reduction of uncertainty and creating awareness. Open communication can reduce the political activity if all employees know how and why an organization allocates resources, the employees will be likely to put their energy into meeting the stated criteria for gelling resources rather than into political activity. If the organization is open about why it made particular decision, then employees will he less likely to think that the decisions were political and less likely to use political techniques to try to influence the next decision. Uncertainty in the form of ambiguous goals and changes that affect the organization tends to increase the use of political activity. Reducing such uncertainty can, therefore, reduce the political behavior. Open communication is one of the ways an organization can reduce uncertainty. For instance, laying down clear criteria and making it transparent to the employees who will be laid off, in case of lay off the organization can reduce political behavior. Finally, managers who develop an ability to recognize and predict political activity are in the best position to limit its effects. Managers with this awareness will expect an increase in political activity during times of organizational change and will learn how to handle it.

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LESSON -17 ORGANIZATIONAL DESIGN Learning Objectives After reading this lesson, you should be able to: • Understand the concept of organizational design • Identify the determinants of organizational design • Know the various forms of organizational design CONCEPT OF ORGANIZATIONAL DESIGN Organizational design is the overall configuration of structural components that defines jobs, groupings of jobs, the hierarchy, patterns of authority, approaches to co-ordination and line-staff differentiation into a single and unified organizational system. Consider, for example, the differences in organizational design that might exist between a computer manufacturer and university. Since the computer manufacturer has to respond to frequent technological breakthroughs and changes in its competitive environment, it is likely to have a relatively flat and decentralized design whereas the university has a more stable environment and is less affected by technology. Therefore, it has a more centralized structure with numerous rules and regulations. DETERMINANTS OF ORGANIZATIONAL DESIGN The key situational determinants of organizational design are technology, organizational environment, and organization size and life cycle. • Technology: Technology is the set of processes that an organization uses to transform various resources such as materials and labor into products or services. Joan Woodward was the first person to see the link between technology and organizational design. In particular. Woodward defined three basic types of technology.  In unit or small-batch technology, products are manufactured according to customer specifications in small quantities. Examples are printing press and studios.  In large batch or mass-production technology, products. are manufactured in assembly-line fashion by combining component pans to create finished goods. Examples are home-appliance," automobile and computer manufacturers.  In continuous-process technology, products are transformed from raw materials into finished goods through a series of machine transformations that change the composition of the materials themselves. Examples are petroleum refiners, food processors and chemical manufacturers. Woodward viewed unit or small-batch technology as -the least complex while the continuous process technology as the most complex. She found that organizations within each set had similar designs but the designs varied somewhat from set to set. Bums and Stalker argued that managers should examine the rate of change in technology to determine the best organizational structure. They recommended a bureaucratic or mechanistic structure for organizations with slowly changing technology and an organic or flexible structure for organizations with rapidly changing technology. Charles Perrow concluded that me key question concerning an organization’s technology is whether it is routine or non-routine. In his view, a highly formalized centralized structure is appropriate for an organization that uses the same routine technology while a more flexible structure is necessary for an organization that often uses new technology. ' An organization that uses continuous process, non-routine or intensive technology needs to ensure that its structure can adapt to changes in the technologies. Technology can affect all aspects of an organization, not just production and the same technological change can have very different effects on different organizations. • Environment: The environment also influences the type of design an organization is likely to adopt. The environment of an organization consists of all the factors and conditions outside the organization that might affect it. which include customers, shareholders competitors, legislatures and regulatory agencies, economic factors, which include interest rates, unemployment rate, finance, objects, which include buildings, machines and events, which include as elections, war, floods etc. If the managers are good at analyzing and predicting changes in the environment, then, they can help the organization to take advantage of any change. Since the environment affects organization both directly and indirectly, therefore, the managers must keep an eye on it and be ready to modify organization's design to respond to environmental changes.

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limits and potentials of" its environment and the life cycle stage it follows. After they are created. The H-Form Organization: In the H-form organization. such an organization can protect itself from cyclical fluctuations in a single industry. The main disadvantage of this form of organization is that it is complex and diverse thereby creating difficulty for top managers in having knowledge about all products. Thus. Organizations tend to follow a predictable pattern of growth. It allows an organization to staff each department with experts. H stands for Hybrid and is also known as conglomerate. more standard operating procedures. U stands for Unity. However. When the organizations grow. This design has two advantages. the U-form design shows decision-making and employees within each department may concentrate on their own function forgetting overall organizational goals. The figure 17. Life cycle refers to organization's maturity relative to that of other organizations. The following figure 17. as organizations grow in size. The design relics on product departmentalization with the various products constituting different businesses. since each department is highly dependent on another.• Organizational Size and Life Cycle: Organization size refers to how large : the organization is. more rules and regulations. Following are the various forms of an organization based on their design: • The U-Form Organization: In the U-form organization. an organization design needed by a small but rapidly growing business is different from an organization design needed by an established and entrenched industry giant growing at a stable and predictable rate. usually. CONTEMPORARY FORMS OF ORGANIZATIONAL DESIGN Every organization has its own unique design depending on its technology. Members of the organization who perform the same functions arc grouped together into departments. First. It is also called as "functional design as it relies exclusively on the functional approach to departmentalization. and more decentralization than small organizations.1 shows the organization cycle. #85 . An organization's life cycle is related to its size. an organization can buy and sell its individual businesses with little or no disruption to the others. they often find that the disadvantages of the U-form tend 10 become more significant and adopt different designs as they evolve through their life cycles. it also facilitates wide spans of management and helps the Managing Director to maintain centralized authority. Secondly. Size can affect organization design in many different ways. This design usually results from the corporate strategy of unrelated diversification of the products. Such organization requires perfect coordination to operate smoothly aiming the various departments. they grow for some period of time and then eventually stabilize as a mature organization. in terms of the number of its full-time employees. The loss in one product is compensated by profit in another. A group of researchers in England found that large organizations tend to have more job specialization. It tends to make it hard for organization to monitor the performance of individual managers within each functional area. they should be prepared to adapt their design accordingly. The U-Form design has several advantages.2 shows the H-form organization. To summarize. An organization's life cycle and growth rates are directly linked to the strategy that the organization is pursuing.

Figure 17. It is similar to the H-form design but has one notable distinction. in terms of manufacturing products that is used by automobile owners. a consumer familiar with an organization’s batteries will be inclined to buy its tyres and car polish. Although each is distinct from the other but still related. • The Matrix Organization: A matrix organization is created by overlaying product-based departmentalization on lo a functional structure. if the businesses are too closely related. A matrix design is seldom used for an entire organization and is often used for a portion of it. A primary advantage of the M-form organization is that it can achieve a great deal of synergy in its operations. These organizations have centralized head office in their home country that controls their various office in other parts of the world. • A matrix design allows an organization to capitalize on the advantages of both functional and product departmentalization. 'the organization cannot escape from the effect of cyclical fluctuations. For example. Most of its businesses are in the same or related industries. other that manufactures lyre and still another that manufactures car polish. co-ordinate and control them. it is easy for top managers to understand.• The M-Form Organization: In the M-form organization M stands for Multi-divisional and it is called the divisional design. #86 . However.3 shows the matrix organization. because the various units are in the same or related businesses. the M-form design is used to implement a corporate strategy of related diversification. Thus. The organization also has to devote more resources to coordination because of high levels of interdependence that result from a matrix. Global Organization: An organization. which has assets in more than one country other than its home country is called as global organization. Moreover. It has also some drawbacks such as an organization lacks a clear chain of command thereby 'resulting into confusion about which manager lies authority over a given employee. an organization with an M-form design might own one business that manufactures automobile batteries. For example. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate the global management.

It is to be remembered that there is no one best form of design that all organizations should adopt. its history. Nestle is a big global organization and highly decentralized. who arc empowered with a great deal of autonomy and authority to make decisions. its technology.g.A global organization must modify and adapt its design to allow it to function effectively. It must then choose a design that fit these elements most effectively. environment. e. Nestlé’s various organizations scattered around the world are operated by its own general managers. Its design is similar to the M-form but because the operating units are so far apart that there is little synergy. Us organizational design is like an umbrella. #87 . its strengths and weaknesses. life cycle and size. Each organization has to carefully assess its own strategy. Nestle is almost a confederation of independent operating organizations. As a result.

"Organizational culture is concerned with the nature of #88 . Most managers agree that a strong and clear culture is preferable to weak and vague culture because it helps to provide a common frame of reference for managerial decision-making and a wide variety of other organizational activities. Factors affecting organizational climate CONCEPT OF ORGANIZATIONAL CULTURE Organizational culture is the set of values that states what an organization stands for. They must create new role model and new stories to help employees understand the meaning of what is happening around them.LESSON -18 ORGANIZATIONAL CULTURE AND CLIMATE Learning Objectives After reading this lesson. Schein defines organizational culture as the pattern of basic assumptions that a given group has invented. An organizational culture generally lakes shape over time and is often deeply influenced by the values of the organizational founders. a strong culture is. Culture communicates whether the organization expects its managers to be aggressive or conservative in decisions-making. All the above definitions stress acceptable and unacceptable behavior of its members. The manager trying to change an organizational culture faces lots of difficulties. Changing Organizational Culture Change is most often needed when the organization has lost its effectiveness and is struggling to either" carry out or change its strategic goals. serve to maintain and perpetuate the culture through subsequent generations of employees. generous or moderate in supporting social causes and ruthless or kind in competitive dealings. Once successfully made. an organization's values automatically enter every employee's personal values and actions over a period of time. any organization willing to change its culture must realize that such a change is never easy and cannot be brought about simply by ordering employees. which are embedded in organization's soul that stays stable irrespective of the changes in leadership and environment. Importance of Culture Culture plays a very significant role in any organization by communicating information about the overall acceptable and unacceptable behavior. According to Deal and Kennedy. These. if the suggestion box remains just a symbol and organization never translates the suggestions into actions. stories. According to Bowditch and Buono. One way to brine about such changes is to manage the symbols that are important to the organization. strong and well-defined culture whereas: others have ambiguous. however. They do not usually appear in the organizational training Program and in fact. possible to change organizational culture. However. As organizational culture evolves. Some organizations try to emphasize the importance of employees’ ideas by rewarding them for their suggestions. discovered and developed while learning to cope with its problems of external adaptation and internal integration. various symbols. Organizational culture has a profound influence on individual employees because it is generally an accepted set of values rather than a written set of rules with which employees might not argue. there are certain differences between the two. Because organizational culture embody the organizational values. many organizations have difficulty in expressing their cultural values. Such values are part of organizational culture in spite of not being formally written like rules and regulations of the organization. one organization might value solidarity and loyalty to organization more than any other value whereas another organization might stress on good relations with customers. An organization's suggestion box is a symbol of an organization's openness to the ideas of the employees. heroes. For instance. the box will have little effect on organization morale. For this managers must change employee's ideas about what is and what is not appropriate behavior. then. However. Organizational Climate Even though organizational culture and organizational climate are sometimes used interchangeably. "a system of informal rules that spells out how people have to behave most of the time". changes in the organizational culture will be as stable as the old culture was. you should be able to understand: • • Organizational culture and explain its importance. weak and poorly defined cultures. how it operates and what it considers important. to improve the organization performance. slogans and ceremonies also come into being. However. Some organizations have clear. It is.

Organizational climate has a major influence on human performance through its impact on the motivation." Organizational climate is a relatively enduring quality of the internal environment that is experienced by its members. motivation and leadership. it is very difficult to generalize exactly the factors affecting the climate. strict supervision and promotional achievement orientation. #89 . Kahn has identified factors such as rules orientation. the nurture of subordinates. agent dependence and general satisfaction. physical environment and values. These factors may include job descriptions. Lawrence James and Allan Jones have identified five factors influencing climate. organizational structure and process. which include communication. Thus. job satisfaction and attitudes of people. which serve as a major force in influencing their behavior. FACTORS AFFECTING ORGANIZATIONAL CLIMATE In every organization. influences their behavior. performance arid evaluation standards. while climate is an indicator of whether those beliefs and expectations are being fulfilled." It is a set of characteristics and factors of the organization that are perceived by the employees and. challenges and innovations. inter-agency conflict. Schneider and Barlett describe six factors that have an influence over organizational climate such as managerial support. Similarly. and can be described in terms of the values of a particular set of characteristics. there exist certain factors that exert deep influence on the climate. leadership style.beliefs and expectations about organizational life. which include management philosophy.

Thus.. quality. i. it is difficult to accept that ultimate goal of organization will be to serve society. Functional Approach This approach solves the problem of identification of organizational goals. The limitation of this model is that an acquisition of resources from environment is again related to the goal of an organization.19 ORGANIZATIONAL EFFECTIVENESS Learning Objectives After reading this lesson. you should be able to understand: • • The concept of organizational effectiveness Factors contributing organizational effectiveness CONCEPT OF ORGANIZATIONAL EFFECTIVENESS Organizational effectiveness is defined as an extent to which an organization achieves its predetermined objectives with the given amount of resources and means without placing undue strain on its members.e. System Resource Approach System-resource approach of organizational effectiveness emphasizes on interdependency of processes that relate the organization to its environment. the vital question in determining effectiveness is how well an organization is doing for the super-ordinate system. As such. Such approaches can be grouped into following three approaches: • Goal Approach. none of the single variable has proved to be entirely satisfactory. However. Instead. It has been defined in terms of organizational goal-achieving behavior. The main limitation of this approaches the problem of identifying the real goals rather than the ideal goals. focus towards attainment of these goals should also aim at serving the society. effectiveness concentrates more on human side of organizational values and activities whereas efficiency concentrates on the technological side of an organization. discussion of organizational effectiveness leads to the conclusion that there is no single indicator of effectiveness. • Functional Approach • System Resource Approach Goal Approach Goal attainment is the most widely used criterion of organizational effectiveness. it cannot be applied for measuring organizational effectiveness in terms of its contributions to social system. It is commonly referred to as the degree to which predetermined goals are achieved. motivation and satisfaction. However the concept of effectiveness is not simple because there are many approaches in conceptualizing this term. Thus. Therefore. which help in measuring organizational effectiveness. turnover. in goal approach. The interdependence takes the form of input-output transactions and includes scarce and valued resources such as physical. It is generally measured as the ratio of inputs to outputs.LESSON . efficiency is a limited concept that pertains to the internal working of an organization. Campbell has suggested several variables such as. Both the goal and functional approach do not give adequate consideration to the conceptual problem of the relations between the organization and its environment. Therefore. It refers to an amount of resources used to produce a particular unit of output. profit. Effectiveness is a broad concept and takes into account a collection of factors both inside and outside an organization. productivity. Sometimes efficiency and effectiveness are used as synonyms. accidents. Managerial effectiveness is a causal variable in organizational effectiveness. FACTORS AFFECTING ORGANIZATIONAL EFFECTIVENESS Likert has classified the factors affecting organizational effectiveness into following three variables: • Causal • Intervening #90 . Parson states that since it has been assumed that an organization is identified in terms of its goal. economic and human for which every organization competes. The limitation of this approach is that when organizations have autonomy to follow its independent courses of action. the manager's own behavior contributes to achievement of organizational goals. there exists a difference between the two concepts. the approach should focus on operative goals that would serve as a basis for assessment of effectiveness. morale. or efficient but not effective. On the other hand. However. this model is not different from the goal model. Further. efficiency. effectiveness refers to maximization of profits by providing an efficient service that leads to high productivity and good employee morale. it is important to explain the difference between the concepts of effectiveness and efficiency to understand why organizations may he effective bin not efficient.

End-Result Variables End-Result variables are the dependent variables that reflect achievements of an organization such as its productivity. Hence. to make organization effective. motivations. which can be altered by organization and its management. decisions. performance goals and perceptions of all the members and their collective capacity for effective interaction. Casual Variables • Leadership Style • Management Decision • Organizational Philosophy Objectives and policies • Technology Intervening Variables • Commitment to Objective • Motivation and Morale • Communication Leadership Skills • Conflict Resolution • Decision –Making Figure 19.• End result Causal Variables Causal variables are those independent variables that determine the course of developments within an organization and the objectives achieved by an organization. while other variables will be corrected or improved automatically because of causal variables. costs. intervening and end-result ore interrelated. attitudes. attempt should be made to improve the causal variables. End Results Variables • Production • Cost • Sales • Earning • Turnover • Management Union Relationship #91 . The causal.2 shows Levels of Variables.e. skills and behavior. loyalties. Figure 19. intervening and end-result variables comprise a complex network with many interdependent relationships. For example. Inter-Relationship of Variables The three variables such as causal. Intervening Variables Intervening variables according to Likert are those variables that reflect the internal state and health of an organization.1: Inter-relationship of Variables The above model is quiet simple. The effectiveness model can be presented in a more complex way i. The causal variables are the key to organizational effective ness. communication and decision-making. loss and earnings.1 shows the relationship among various variables. The inter-relationship may be visualized as psychological process where stimuli or causal variables acting upon the organism or intervening variables and creating certain responses or end-result variables. group and organizational levels in order to make the organization more effective. Figure 19. at three different levels such as the individual. Causal variables include organization and management's policies. business and leadership strategies. These causal variables include only those independent variables.

. Effectiveness through Adaptive-Coping Cycle The organization must develop a system through which it can adapt or cope with the environmental requirements. 6. A successful coping suggests that all the stages have to be successfully-negotiated and failure at any of these stages may result into ineffectiveness. If there is no perfect integration of individual and organizational goals then organizational effectiveness is affected adversely. affects the degree of organizational effectiveness. especially when the major organizational changes take place. Exploring New Outputs: When the internal change is stabilised. • There should be enough internal flexibility so that changes can be brought and absorbed by an organization.e. Most of the organizations have adaptive sub-system such as marketing research. There are six stages in the adaptive-coping cycle as follows: 1. #92 . which is dependent on external. which provide willingness for change. 5. research and development and other similar devices for effective coping with the environment. He may sec his goal satisfaction in satisfying organizational goals. Stabilizing Internal Changes: The fourth stage of the cycle is to stabilize an internal sub-system of an organization. Following are the major organizational conditions for effective coping: • There should be an effective communication system through which reliable and valid information can be passed. • Successful coping requires integration and commitment to organizational goals. which can support good communication. which consists of various activities that enable an organization to cope with the dynamics of environment. • There should be supportive internal climate. Obtaining Feedback: The last stage in the cycle is to obtain feedback on the outcome of the changes for further sensing the state of the external environment and the degree of integration of internal environment. the organization can export new outputs. normally known as conversion process. organizational effectiveness is not a result of integration between individual and organizational goals only but there are other causal variables affecting it. reduction in inflexibility and stimulation of self-protection. Importing the Relevant Information: Organizations must be able to take the relevant information from the environment. This is because change in one may affect other and this change can be either positive or negative. which are in accordance with environment requirements. each individual tries to satisfy his goal by working in an organization and simultaneously satisfying organizational minis. 2. The extent to which individual and organizational goals are integrated. This is similar to first stage. 4. Adaptive-Coping cycle is a continuous process. which constitutes the input. Changing Conversion Process: The organization takes the inputs from environment for further processing. i. Maintaining organizational effectiveness requires additional efforts. However. Sensing of Change: The first stage is the sensing of change in internal or external environment.The effective organization is built of effective individuals who work collectively in groups. sub-system. 3. Schein has suggested that an organization can do this through the adaptive coping cycle.

The economic and social environment is so dynamic that without adapting to such change even the most successful organizations cannot survive in the changed environment. Technological Advancements: Both manufacturing and service organizations are increasingly using technology as a means to improve productivity and market competitiveness. Inappropriate leader behavior such as inadequate direction and support are the cause of conflict between managers and their subordinates. Social and Political Pressures: These forces are created by social and political events. individuals have to learn to adapt their attitudes and behavioral patterns to constantly changing environments. This may come from both human resource problems and managerial behavior. expectations and skills. These forces come from external and internal sources of the organization. Although it is difficult for organizations to predict changes in political forces. Organizations are entering into new partnerships with their suppliers in order to deliver higher quality products at lower prices. Organizations need to effectively manage these characteristics in order to receive maximum contribution and commitment from their employees. Organizations encounter different forces for change. Organizations might respond to these problems by using the various approaches to job design by implementing realistic job previews and by reducing employees' role conflict. priorities and motivation. Therefore. Nature of Change Organizations introduce changes through people. EXTERNAL FORCES External forces for change originate outside an organization. Human Resource Problems These problems stem from employee perceptions about their work environment and conflict between an employee and organization needs. management must continuously monitor the outside environment and be sufficiently innovative and creative to implement these changes effectively. Management of change involves both individual and organizational change. Personal values affect employees’ needs.20 MANAGEMENT OF CHANGE Learning Objectives After reading this lesson. needs. managers need to adjust their managerial style according to the changing employee values. attitudes. Political events also create substantial change in an organization. the degree of difficulty involved in the change and the time taken to bring about the change will depend on the target of change. stress. Therefore. skill level and gender of employees. educative strategies. education. work overload and ambiguity. Individual change is behavioral change. There are four key external forces for change: Demographic Characteristics: These include age. Even in most stable organizations change is necessary to maintain stability. INTERNAL FORCES Internal forces for change come from inside the organization. In addition. you should-be able to understand: • The concept of change in the organization • Forces affecting the change • Model and dynamics of planned change • The reasons for resistance to change • The method of overcoming resistance to change Change simply refers to alteration in the existing conditions of an organization. It is possible to bring about a total change m_ an organization by changing behaviors of individual members through participative and. which is determined by individual characteristics of members such as their knowledge. beliefs. Market Changes: The emergence of a global economy is forcing Indian organizations to change the way they do business. Managerial Behavior Excessive interpersonal conflict between managers and their subordinates is a sign of implementing an immediate change. Although. many organizations hire lobbyists and consultants to help them detect and respond to social and political changes. intended changes can never be translated into reality. Unless the people arc willing to accept the need and responsibility for organizational change.LESSON . #93 .

we may still act in a less honest way. As these two kinds of changes are interdependent. we know that honesty is the best policy and we have favourable altitudes towards people. Since reactive change may have to be carried out hastily. More often than not. individual member's ‘changed behavior’ may revert to earlier normative behavior in order to maintain the change in the existing conditions. managers must understand the steps needed for effective change. External forces that the organization has failed to anticipate or interpret always bring about reactive change. therefore managers must approach it systematically and logically. it increases the likelihood of a poorly conceived and poorly executed Program. One's attitude does not necessarily get reflected in one's behavior. APPROACHES TO ORGANIZATIONAL CHANGE As organizational change is a complex process. #94 .who are honest but in certain situations. Reactive change results from a reaction of an organization to unexpected events. However. Planned change is designed and implemented by an organization in an orderly and timely fashion in the anticipation of future change. policies. it is a slow painful process to usher a total cultural change in an organization. Every group has its own dynamics of push and pull that attempt to neutralise the change that may have taken place in an individual. The linkage between attitude and behavior is not direct and therefore changing behavior is more difficult than changing attitudes. Due to this group dynamics. due to the same reasons of a group's over-riding influence on individual members. This model is useful for both planned and reactive change.The attitudes towards change are largely dependent on the nature of the situation and the manner in . Managers who sit back and respond to change only when they can no longer avoid it are likely to waste a lot of time and money trying to patch together a last-minute solution. sometimes it may be easier to tackle the group as a whole rather than trying to change the behavior of members one by one. it is a piece-meal response to circumstances as they develop. Changing group behavior is usually a more prolonged and harder task. Planned change is always preferable to reactive change.1 shows seven steps that can lead to effective change. The more effective approach is to anticipate the significant forces for change working in an organization and plan ways to address them. Bringing total behavioral change in all the groups and members of an organization involves difficult long-range effort. These types of changes alter prescribed relationships and roles assigned to members and eventually modify the individual members’ behavior and attitudes. In contrast to planned change. Modification in the organization's structures.which changes are initiated and executed. Changing individual behavior is more time consuming and a difficult task. procedures and techniques leads to total organizational change. the complexity of managing change increases manifold. A COMPREHENSIVE MODEL OF CHANGE The comprehensive model of change shown in the figure 20. It is possible to change total organization without focusing at the level of individual's change of knowledge. Some organizational changes are planned whereas other changes are reactive. To accomplish this. For example. attitude and behavior.

change. if turnover is the recognized stimulus for change. Turnover. For example. then a new reward system is required and if the cause is poor supervision then interpersonal skills and training for supervisors is required. Establish goals for change The manager must then set goals for the proposed change. The goals can be set to maintain or increase the market standing. Select change intervention After the manager has developed an understanding of the problem and its causes then he must select a change intervention that will accomplish the intended goal. recognition is likely to come much earlier. to enter new markets. To carry out this diagnosis. poor supervision. Thus.The seven steps of comprehensive model of change are as follows: Recognize need for change The first step in this model is recognizing need for change. An intervention is a specific change induced in an organization with the intention of solving a particular problem or accomplishing a specific objective. It is important for the manager to specify goals that the change is supposed to accomplish. expert indications about impending socio-economic change or a perceived opportunity to capitalize on a key technological breakthrough. to settle a strike and to identify good investment opportunities. Planning the implementation of change involves consideration of the cost of the change. how the change will affect other areas of the organization and the degree to #95 . if turnover is caused by low pay. for example. to reduce turnover. Diagnose relevant variables An important next step is diagnosing organizational variables that have brought about the need for change. to restore employee morale. poor working conditions. the manager may discuss the situation with employees and other managers. may be caused by a variety of factors such as low pay. These managers tend to ‘initiate change because they expect it to be necessary in the near future in any case’. For marketing managers who anticipate needed . better alternatives in the job market or employee job dissatisfaction etc. as a result of marketing forecasts indicating new market potential. the manager must understand what has caused it in a particular situation in order to make the right changes. Plan implementation of change The manager must then carefully plan the implementation of change.

as well discontinuing current attitudes. if change is thrust upon them too quickly. This is accomplished by first giving employees the chance to exhibit the new behaviors or attitudes. #96 . In doing so individuals are encouraged to replace old behaviors and attitudes with those desired by management. Lewin developed a three-stage model of planned change. Re freezing The focus of this stage is stabilizing the change during refreezing by helping employees integrate the changed behavior or attitude into their normal way of doing things. Expanded process model is illustrated in the figure 20. or new ways of looking at things. this model is based: 1. The purpose is to help employees learn new concepts to implement change. after the change has been implemented. However. The following are the three stages of change: Unfreezing The focus of this stage is to make organization open to change. it is important to highlight the assumptions on which. positive reinforcement is used to reinforce the desired change. The three stages are unfreezing. new behavioral models. Any change. Role models. Effective change requires reinforcing new behaviors. Resistance to change is found even when the goals of change are highly desirable. MODELS AND DYNAMICS OF PLANNED CHANGE Managers are criticized for emphasizing short-term. Managers also need to devise ways to reduce the barriers to change during this stage. Implement change A systematically implemented change is more likely to proceed smoothly and to encounter fewer obstacles than is a change that is implemented too quickly and without adequate preparation.2. 2. the manager should verify that it has accomplished its intended goals. People are the hub of all organizational changes. 3. This may be due to inappropriate goals or inaccurate diagnosis of the situation or wrong selection of intervention. Evaluate implementation Finally.which employees should participate in bringing about the change. Once exhibited. Quick-fix solutions do not really solve underlying problems and they have little staying power. which explained how to initiate. Change will not occur unless there is motivation to change. The change process involves learning something new. their resistance may stiffen. 4. The model incorporates Lewin's concept as part of the implementation phase. This model looks at planned change from the perspective of top management. group process. mentors. if the change involves the use of new equipment. experts. Additional coaching and modelling are also used at this point to reinforce the stability of the change. reward systems or job design requires individuals to change. behaviors and organizational practices. This is often the most difficult part of the change process. Researchers and managers have thus tried to identify effective ways to manage the change process. attitudes and organizational practices. A change may fail to bring about the intended results. whether in terms of structure. Before reviewing each stage. changing and refreezing. quick fix solutions to organizational problems. Moreover. benchmarking organization against world-class organizations and training are useful mechanisms to facilitate change. For example. Expanded Process Model Lewin's model is very simple and straightforward and virtually all models of organizational change use his approach. 5. manage and stabilize the change process. Hastily implemented change can result in more harm than benefit. it does not deal with several important issues. Changing The focus of this stage is in providing employees with new information. the manager should not make any changes that rely on the use of new equipment until it has arrived and been installed and workers know how to use it. The following models have been developed to effectively manage change: Lewin's Change Model Most theories of organizational change originated from the landmark work of social psychologist Kurt Lewin.

Usually. For example. managers need to recognize the manifestations of resistance both in themselves and in others.Figure 20. the top management defines its goals in terms of what the organization or certain processes. managers can use the list given in following table. RESISTANCE TO CHANGE Although organizations initiate changes in order to adjust to the changes in their environments but people sometimes resist them. if they want to be more effective in supporting change.2 Top management according to this model perceives certain forces or trends that call for change and issues that are subjected to the organization's usual problem solving and decision-making processes. or outputs will be like after the change. Alternatives for change are generated and evaluated and then an acceptable one is selected. Therefore. Acceptance • • • • • • Enthusiasm Cooperation Cooperation under pressure from management Acceptance Passive resignation Indifference • • • • • • • • • • • • Indifference Apathy: loss of interest in the job Doing only what is ordered Regressive behavior Non-learning Protests Working to rule Doing as little as possible Slowing down Persona! withdrawal (increased time off the job) Committing "errors" Spoilage Deliberate sabotage Passive Resistance Active Resistance #97 .

Any change that may alter the power relationships within an organization may meet the form of resistance known as ‘threatened power’. They present changes as a relational decision. They can translate desires into practical action. so they resist any change that might adversely affect those relationships. thus disrupting existing social networks. many organizations change interventions and alter work arrangements. Change may also threaten people's feelings of familiarity and self-confidence. 8. They do not pile one change on another but wait for assimilation. They harness circumstances to implement change. Resistance may occur when a change threatens quantum of resource allocation from one part of the organization to another. They share maximum information about possible outcomes. They show reverence for tradition and respect for experience. In the face of impending change. They worry about their ability to meet new job demands therefore. 2. Before recommending specific approaches to overcome resistance. • Some people resist change to avoid feeling of loss. 6. Resistance may also take the form of threatened expertise if the change lends to weaken special expertise built after years of experience. They show that change is ‘related to business or job’. 5. a British Psychologist and business consultant. They know clearly what they want to achieve. • • • • • • Over determination or structural inertia refers to the tendency of an organization's rules. there are three key conclusions that should be kept in mind. They have a history of successful change. individuals have the following reasons for resisting change: • Simple habits create a lot of resistance. They are not discouraged by setbacks. 4. has listed the following characteristics of people who are good at managing changes. They make change by personally rewarding people. When an organization tries to change one of its division or part of the division without recognizing the interdependence of the division with other divisions of the organization. 10. • Perhaps the biggest cause of employee resistance to change is uncertainty. Most people prefer to do their work the way they did it last week rather than learn a new approach. They clearly explain change to people affected by change. 3. organizational sources of resistance can be divided into following six general groups. leading to feeling of job insecurity.The sources of resistance to change within organizations are classified into organizational sources of resistance and individual sources of resistance. wherever possible. 14. OVERCOMING RESISTANCE TO CHANGE Managers need not abandon planned change in the face of resistance. They involve their staff in the management of change and protect their security. an organization must be ready #98 . Valerie Stewart (1983). 9. First. 1. policies and structure to maintain the existing conditions and therefore resist change even when change would benefit the organization more than stability. Organizational restructuring that involves reducing the number of job categories often meets this kind of resistance. Often a part of division cannot be changed without changing the whole division. For example. employees are likely to become anxious and nervous. 12. then it is said to have a narrow focus of change. • People may resist change because their perceptions of underlying circumstances differ from the perceptions of those who are promoting the change. 11. They can propose changes not only from their own view point but also from that of others. 7. Social relationships are important to most people. Group inertia may weaken an individual’s attempt to bring about change. Individual Sources of Resistance According to researchers. ORGANIZATIONAL SOURCES OF RESISTANCE According to Daniel Kantz and Robert L Khan. 13.

However. • Explicit and Implicit Coercion: This is adopted where speed is essential and where the change initiators possess considerable power. an organization that plans to introduce certain changes must be prepared to face resistance from its employees. The relationships involve mutual trust. OD can be defined as a technique for bringing change in the entire organization. Interventions constitute the action thrust of organization development. OD has the following characteristics.for change. • Change agent applying OD technique for change is external to the forms of consultants. OD Interventions OD interventions refer to various activities which consultant and client organization perform for improving organizational functioning by enabling organization members to better manage their team and organization cultures. • There is a close working relationship between change agents and the people who are being changed. the top management should inform the employees about the process of change. it can lead to further problems if people feel manipulated. • Facilitation of Change: Knowing ahead of lime that employees are likely to resist change then the manager should do as much as possible to help them cope with uncertainly and feeling of loss. Sometimes it is a relatively easy way to avoid major resistance. making only necessary changes. They become committed to the change and make it work. Second. French and Well have defined OD interventions as "sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. • Education and Communication: Educating employees about the need for and the expected results of an impending change help reduce their resistance. According to Bennis. There is no universal strategy for overcoming resistance to change. It is a time consuming process. Introducing change gradually. rather man focusing attention on individuals to bring change easily in the entire organization. • It relates to real problems of an organization. • The change agents share social philosophy about human value. Employees who take part in planning and implementing change are better able to understand the reasons for the change than those who are not involved. Hence. It can be quick and inexpensive. It is speedy and can overcome resistance.” Intervention Techniques • Sensitivity Training #99 . Each of the above methods has its advantages and disadvantages. • Force-Field Analysis: In almost any situation where a change is being planned. the employees perceptions or interpretations of a change should be considered. However. it is also a time consuming process. and mutual influence. they make things happen and are what is happening. • Negotiation: Where someone or some group will clearly lose out in a change and where that group has considerable power to resist. • It is an educational strategy for bringing planned change. ORGANIZATIONAL DEVELOPMENT The term Organizational Development (OD) refers to a broad range of behavioral science based strategies used to diagnose the need for change in organizations and to implement changes when necessary. means. An organization should also have a planned approach to overcome such resistances. The following methods of overcoming-resistance to change are as follows: • Participation: Participation is generally considered the most effective technique for overcoming resistance to change. Nature of OD OD is a general strategy or approach to organizational change mat is employed to analyze and diagnose the sources of organizational problems and to develop and implement action plans for their solution. • Manipulation and Cooperation: This is followed when other tactics will not work or are too expensive. joint goals. Third. Managers should maintain an open channel of communication while planning and implementing change. They are humanists seeking to get a humanistic philosophy in organization. there are forces acting for and against the change. announcing changes in advance and allowing time for people to adjust to new ways of doing things can help reduce resistance. there negotiation is required. the manager list each set of forces and then try to remove or minimize some of the forces acting against the change. In force-field analysis. Employees who have the opportunity to express their own ideas and to understand the perspectives of others are likely to accept change gracefully. • Laboratory training methods based on experienced behavior are primarily used to bring change.

communication. less ethnic prejudice. T-group has several characteristic features: • The T-group is generally small. management by objectives. In general. developed by Blake and Mounton. OD shows a promising future. authority and leadership and inter-group cooperation and conflicts. which requires people to become sensitive to one another's feelings in order to develop reasonable group activity. enabling individuals and groups to assess their own strength and weaknesses. The basic content of P-C is that the consultant works with individuals and groups to help them learn about human and social processes and learn to solve problems that stem from process events. As such. rules. Team Development: The underlying aim of team development is to increase trust among team members because people work better together when there is open and honest sharing about the problems and difficulties that they have with one another.• • • Process Consultation Team Development Grid Organization Development Sensitivity Training: Sensitivity training is a small-group interaction under stress in an unstructured encounter group. group problem-solving and decision-making. Process Consultation: Process Consultation (P-C) represents a method of intervening in an ongoing system. In addition to these people focused interventions. roles and functions of group members. knowledge and processes necessary for effectiveness at the individual. group norms. is a comprehensive and systematic OD Program. group and inter-group and total organization levels. OD offers some very attractive methodologies and philosophies to practicing managers and academicians. e. job enrichment. the attempt should be to develop such an environment where such trust can be developed among the team members Grid Organization Development: Grid organization development.g. more concern for others. since there are no rigid sets of procedures in OD work and different strategies have to be evolved for different types of organizations. William Halal is right when he says "OD in future includes any method for modifying the behavior in the organization. encompassing the entire spectrum of applied behavioral science". understanding of a group process. at the initial level. The objectives of such training are increased openness with others. the actual technique employed is T-group. In sensitivity training. It utilizes a considerable number of instruments. structural and job interventions such as job enlargement. from ten to twenty members • The group begins its activity with no formal agenda • The primary role of trainer is to call attention of members from time to time lo the ongoing process within the group • The procedure lends to develop introspection and self-examination. with emotional levels of involvement and behavior. there may be other types of interventions too. #100 . There also have been experiences of failure in OD but these are being recorded and collected to be reviewed. groups and the organization as a whole. hereby. increased tolerance for individual differences. enhanced listening skills and increased trust and support. It also focuses on skills. procedures and authority structure. The Program aims at individuals. P-C consists of many interventions and activities which affect the various organizational processes such as.

What are the causes of stress? 16. B (4x15 = 60) Answer any four questions Compare the Maslow's Theory with ERG Theory of Motivation. 8. 11. What do you understand by organizational behavior? Bring out its nature and importance. 10. Discuss the personality attributes in organization. 3. What are the sources of power? 7. 10. 5. 11. B (4x15 = 60) Answer any four questions Compare the Maslow's Theory with ERG Theory of Motivation. What do you understand by organizational behavior? Bring out its nature and importance. What are the barriers to effective communication? How to overcome those barriers? What are the techniques of managing political behavior? State the consequences of stress and method of managing the stress. Suggest strategies to resolve inter-group conflicts. Discuss the personality attributes in organization. 12. What are the forms of organizational communications? 6. What is group cohesiveness? What are its determinants? 13. What are the sources of power? 15. Why do people resist change? As a manager how would you overcome such resistance? #101 . Why do people resist change? As a manager how would you overcome such resistance? MODEL QUESTION PAPER ORGANIZATIONAL BEHAVIOR Time: 3 Hours Max. What is the organizational design? What are its forms? 12. Marks: 100 SECTION-A (5x8 = 40) Answer any Five questions Note: All questions carry equal murks 9. 3. Marks: 100 SECTION-A (5x8 = 40) Answer any Five questions Note: All questions carry equal murks 1. What is group cohesiveness? What are its determinants? 5. What is the organizational design? What are its forms? 4.MODEL QUESTION PAPER ORGANIZATIONAL BEHAVIOR Time: 3 Hours Max. What is organizational culture? How it affects the behavior of the people? SECTION1. 4. What are the forms of organizational communications? 14. 2. 9. 2. What are the causes of stress? 8. 6. What are the barriers to effective communication? How to overcome those barriers? What are the techniques of managing political behavior? State the consequences of stress and method of managing the stress. What is organizational culture? How it affects the behavior of the people? SECTION7. Suggest strategies to resolve inter-group conflicts.

#102 .

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