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Definition: - Leadership is defined as the process of influencing group activities towards the accomplishment of goals in a given situation. Leadership is unanimously agreed as a psychological process of influencing followers and providing guidance to them. Leadership is essential to influence people to achieve mutually compatible objectives. In fact, all organizational success can be attributed to leadership.

1. Leader develops team work 2. Leader is a representative of subordinates 3. Leader is an appropriate counsellor 4. He uses power properly 5. Leader manages the time well 6. He strives for effectiveness MANAGING AND LEADING Leading and managing are not synonymous. The differences between these tow terms „leading‟ and „managing‟ are as under. 1. Relationships: The managerial relationship arises within the organizational context, whereas leadership does not have to originate in the context of the organization. For example, a mob can have a leader but cannot have a manager. Further, in an organization informal groups have leaders – not managers. 2. Sources of influence: Managers obtain authority from the organization and the leader gets power from his followers. 3. Sanctions: A manager has control over the positive sanctions such as promotion and awards for high task performance and the contribution to organizational objectives. He is also in a position to exercise negative sanctions such as withholding promotion or increments, demotion in some cases of extreme default or mistakes, etc. In a sharp contrast, a leader has altogether different type of sanctions to exercise and grant.

He can grant or withhold access to satisfying the very purpose of joining the groups – social satisfaction and related task rewards. These sanctions are essentially informal in nature. These informal sanctions are relevant to the individual with belongingness or ego needs; whereas the organizational sanctions granted or exercised by the manager are geared to the physiological and security needs of individual. 4. Role continuance: A manager may continue in office as long as his performance is satisfactory and acceptable to the organization. On the contrary, leader maintains his position through the wish of the followers i.e. how well he facilitates his group in accomplishing their objectives. 5. Reasons for following: People follow managers because their job description, supported by a system of rewards and sanctions, requires them to follow. On the other hand, people follow leaders on voluntary basis. Further, if there are no followers, leader ceases to exist. But even if there are no followers a manager may be there. 6. Accountability: Managers are accountable for the job behaviour of those managed as well as their own behaviour. Leaders are not accountable for the behaviour of their followers in the similar fashion of the manager‟s accountability.

LEADERSHIP STYLES Basically, three styles are listed out – Autocratic, Democratic and Free-rein. Autocratic/Authoritative/Directive style: An autocratic leader centralizes power and decision – making in himself and exercises complete control over the subordinates. He holds over the head of his subordinates the threat of penalties and punishment. He sets the group goals and structures the work. He runs his own show. The leader gives order and the subordinates are to follow them ungrudgingly and unquestioningly. The problem with this style is that subordinates are made aware of what to do but not why. In autocratic situations, frustration, low morale and conflict develop easily. Subordinates are induced to avoid responsibility, initiative and innovative behaviour. Autocratic leadership can be only as good as the leader i.e. if the leader is weak and incompetent, the followers will be weak and incompetent.

Autocratic style permits quick decision – making and hence can be applied with success in situations where. 1. The subordinates lack knowledge of company goals. 2. The subordinates are inexperienced or lack in training 3. The company endorses fear and punishment as accepted disciplinary techniques 4. The leader prefers to be active, and dominant in decision – making and 5. There is little room for error in final accomplishment

Again under condition of stress or when great speed and efficiency are required autocratic leadership can yield positive outcome. It can increase productivity, and somewhat more surprising it can also enhance morale.





Participative Fig. 1: Leadership styles

Free – rein

Democratic/Participative style: In contrast to the autocrat, the democratic leader practises leadership by consultation. He is like a theory Y leader and invites decision sharing. Here authority is decentralized. Decisions are arrived at after consultation with followers and participation by them. The subordinates are also encouraged to exploit their potentials and assume greater challenging responsibilities. This style improves job satisfaction, group cohesiveness and morale of employees.

Participative leadership style is appropriate where: 1. The organization has communicated its goals and the objectives to the subordinates and the subordinates have accepted them. 2. Rewards and involvement are used as the primary means of motivation and control. 3. The leader truly desires to hear the ideas of his employees before making decisions. 4. The leader wishes to develop analytical and self- control abilities in his subordinates. 5. The workers are reasonably knowledgeable and experienced. 6. The subordinates desire active and true involvement in matters that affect them. 7. The time for task completion allows for the participation. Participative style is appreciated on the grounds that: 1. The leader cultivates the decision – making abilities of his subordinates. 2. The leader seriously listens to and thoroughly reviews the ideas of his subordinates and accepts their contributions wherever possible and practical. 3. Participative style is not always a bed of roses. It is attacked on the following grounds: a. Participative style is a misleading term. There is always a danger of misinterpretation of decision sharing. Subordinates may view the leader as incompetent to handle crisis independently. Participation may also be interpreted as a sign of inefficiency on the part of the leader to deal with the problems and taking decisions. b. Participative leadership is time – consuming. c. It is a mean of abdication of the responsibility for some leaders.

Table : 1 Authoritative Vs Participative Styles Authoritative Participative 1. Manager exhibiting this style is Manager exhibiting this style is labeled labeled as a „Theory X‟ leader as a „Theory Y‟ leader. 2. Leader is autocratic, task – oriented Leader is democratic, follower oriented and restrictive and permissive. 3. Leader structures the task strives to Leader is considerate of his find out better methods, and keeps the subordinates, recognizes their needs and employees busy on tasks. respects their human dignity. 4. One way communication Two – way communication

5. Centralized decision – making and Decentralized decision-making and quick decision slow process of making decision. 6. Because of greater resistance change Because resistance to change is winning over employee confidence minimum, leader gains a consented and and obtaining commitment to task is cohesive group confidence difficult. Free – rein Leadership Style: Free – rein leader is a rather complete delegation of authority into the hands of the subordinates so that they must plan motivate, control and otherwise be responsible for their own actions. The free – rein leader avoids power and relinquishes the leadership position due to lack of self – confidence and fear of failure. (i) The organizational goals have been communicated well and are acceptable to the subordinates. (ii) (iii) The leader is interested in delegating decision – making fully. The subordinates themselves are well – trained and highly knowledgeable concerning their tasks and are ready to assume responsibilities.

The problem with this abdicate style is that is tends to permit various units of an organization to proceed at cross-purposes and can degenerate into chaos. Hence, it should be the rare exception not a general rule.

The 9. a frame-work of parallel bars. Subordinates are expected to carry out order with an unquestioning obedience.MANAGERIAL GRID The two dimensions of leadership. I managerial style. They are taken as merely means for doing the tasks assigned to them.. however. It is an autocratic style of leadership. Human relationships and inter-actions are minimized. When a conflict erupts among the subordinates.Blake and Janes S. The relationship between the manager and his subordinates is based on the exercise of authority and obedience. If the conflict is between a subordinate and the boss. Little attention is given to their development or communicating with them beyond the issue of instructions and orders. concern for people and concern for production have been demonstrated by Robert R. 2 Managerial Grid . Blake and Mouton identified five basic leadership styles of practicing managers representing various combinations of the aforesaid two dimensions as shown in the following figure. This style places a heavy emphasis on task and job requirement. the manager following this style tries to suppress it because of the possible ill-effects that conflict may have on the work. It is. important to point out that these basic styles are a matter of convenience rather than a fact. A brief description of these styles is given below: 1. The use of power in the authority obedience is the basis of control. the goal of the boss is to win. (High) 9 (Low)-Concern for People 6 7 8 1-9 (Country Club) 9-9 (Team) 5-5 (Middle Road) 3 (Impoverished) 1-1 1 2 3 4 5 6 7 4 5 (Task) 9-1 8 9 (High) 1 (Low) – Concern for Production 2 Fig. viz. 1 Managerial Style (Task) People are regarded as an instrument of production under the 9. The word „grid‟ means an iron grating.Mouton in the form of a grid.

9 style is the need to be involved and committed to work. the 9. 1 Managerial Style (Impoverished) A manager with this orientation exerts minimum influence on the contacts with group members.9 Managerial Style (Team) A basic need of people that is met by the 9. communication. 4. If too much is told. He expresses little concern for production or people. Enough concern is shown for the people so that adequate production may be achieved.9 orientation aims at integrating the people and production dimensions of work under conditions of high concern for growth. work is done leisurely. The 9. not the individual.5 approach to management development. it is feared that they might resist.9 style and other managerial styles is in goal setting and its use as a basic management approach to a large variety of problems. just enough is communicated so that people have a general sense of what is going on. He is an expert in passing on blame to others for failures in such a way that he absolves himself from responsibilities. At best people are regarded rather than driven. Meetings are held to listen to their suggestions and to create a sense of participation in decision-making. This brings about the kind of team spirit that leads to high organisational accomplishment. However. Subordinates are expected to turn out some work to avoid trouble. This is seen in the 5.5 style seeks to maintain a balance between the two. The 5. . he is most likely to be found executing messenger-carrier functions.2. A major difference between 9. The boss is more of a big brother than the autocratic leader. is the key in the organization. In a supervisory position.5 Managerial Style (Middle Road) The “people” dimension in the work situation is as important as the “production” dimension. His criticism is strictly in self –defence. In other words. The key is the involvement and participation of those responsible for it in planning and execution of work. and performance reviews. The 5. The group. The 1. 5. 3. communicating orders from the layer above to the layer below. The 1. The capability of people to be involved in organizational objectives through commitment to objectives is fundamental. 9 Managerial Style (Country Club) Under this style of management. Minimum involvement in organisation‟s purpose and with its people is all that he wants. yet he rarely initiates criticism spontaneously. A basic assumption of this style is that people will work willingly and so as they are told if the reasons for doing so are explained to them. The aim is to achieve friendliness and harmony among the members of the organization. Social relationships are more important.

When the style of a leader is appropriate to a given situation it is termed „effective‟ and when the style is inappropriate to a given situation. . relation orientation (similar to consideration or concern for people) and effectiveness orientation as illustrated in the following figure. three-dimensional axes represent task orientation (similar to initiating the structure or concern for production). In fact. In Reddin‟s 3-D Management Style Theory.Reddin added effectiveness dimension to the two dimensions of Managerial Grid and other models. the third dimension is environment. 3: Three Dimensions of Leadership Style The difference between the effective and ineffective styles is often not the actual behaviour of the leader but the appropriateness of the behaviour to the environment in which it is used. This was done to integrate the concepts of leadership style with situational demands of a specific environment.TRI-DIMENSIONAL LEADER EFFECTIVENESS MODEL W. it is termed „ineffective‟. It is the interaction of the basic style with the environment that results in a degree of effectiveness or ineffectiveness. Relationship Dimension Task Dimension Fig.J.

Intelligence: Research generally shows that leaders have higher intelligence than the average intelligence of their followers. Human relations attitudes: Successful leaders recognize the worth and dignity of their followers and are able to empathise with them. . Social maturity and breadth: Leaders tend to be emotionally stable and mature and to have broad interests and activities. abilities and social skills of the leaders. 4. They strive for intrinsic rather than extrinsic rewards. 1. leaders cannot be exceedingly much more intelligent than their followers. however.THEORIES OF LEADERSHIP 1. which seem to have an impact on successful organizational leadership. Trait theories of Leadership: The trait approach is concerned mainly with identifying the personality traits of the leader. 2. Leaders possess consideration. They are employee rather than production centered. 3. This approach to leadership implies that understanding leadership effectiveness in organizations requires the identification and measurement of the personality traits. Inner motivation and achievement drives: Leaders have relatively intense motivational drives of the achievement type. Keith Davis summarized four major personality traits. They have an assumed respectful self – concept. Interestingly.

An alternative approach is to focus instead on what the leader actually does when he or she is dealing with subordinates. and Social skills Most Frequently Associated with Effective Leadership Personality Traits Adaptability Adjustment (normality) Aggressive and assertiveness Dominance Emotional balance & control Independence Originality & creativity Personal integrity (ethical conduct) Self confidence Knowledge Fluency of speech Abilities Intelligence Judgement & decisiveness Social skills Ability to enlist cooperation Administrative ability Cooperativeness Popularity and prestige Sociability (inter personal skills) Social participation Tact and diplomacy II. BEHAVIOURAL THEORIES OF LEADERSHIP Trait theories of leadership focus upon personal characteristics of the leader and try to explain leadership effectiveness on the basis of what type of person the leader is. Behavioural theories of leadership effectiveness focus upon leader behaviour and seek to understand the relationship between what the leader does and how subordinates react emotionally (their levels of satisfaction with work) and behaviourally (their job performance). . relatively broad categories of leader behaviour. The Ohio State studies: Researchers at Ohio State University identified two distinct. Consideration refers to the extent to which a leader is considerate of subordinates and concerned about the quality of his or her relationship with subordinates. The two categories were labeled consideration and initiating structure.Table:2 Personality Traits. Abilities.

a leader who is characterized by a high level of initiating structure may be high or low on consideration.Initiating structure refers to the extent to which a leader is task-oriented and concerned with utilizing resources and personnel effectively in order to accomplish group goals. Leader consideration Friendliness Consultation with subordinates Recognition of subordinates Open communication with subordinates Supportiveness Representation of subordinates‟ interests Clarifying subordinates roles Criticizing poor work Pressuring subordinates Relationship to effectiveness: Consideration and initiating structure are thought of as two relatively independent dimensions of a leader‟s behaviour. Similarly.4: The Ohio state dimensions of consideration and initiating structure . The following figure plots these two dimension of leadership behaviour in the form of a grid wherein the positions of four hypothetical managers are plotted. a leader with a high degree of consideration need not necessarily be low on initiating structure. In other words. The nature of these two dimensions of leader behaviour is summarized below: Table:3 Examples of behaviours associated with Leader consideration and Initiating structure. High Leader initiating structure Planning Coordination Directing Problem solving  Initiating Structure Manager 3  Manager 1 Low  Low Low Manager 2  Manager 4 High Consideration Fig.

to indicate that leaders exhibiting high levels of both consideration and initiating structure generate higher levels of subordinate performance. who rates high on both dimensions. leaders who rate high on consideration tend to have subordinates who are more satisfied. has a leadership style characterized by a high degree of directing and controlling subordinates and a high level of concern and warmth towards employees.Manager 1. Manager 4 is just the opposite of Manager 3. However. who express fewer grievances. the pattern of results is much less clear-cut. Leadership effectiveness depends upon the existence of a “fit” between the leader‟s behaviour and the demands of the situation. This basic notion is diagramed in the following figure. when we turn to the issue of subordinate performance. Leader Behaviour FIT Demands of the situation Leadership effectiveness Fig. directing and so on but does little to show his concern or interest in subordinates. There is some evidence. Manager 2 shows neither of these characteristics in his leadership style and would probably be characterized as a “laissez-faire” or a “do nothing” manager. He is very friendly and supportive toward his subordinates but does little to control. It does not appear that being either high or low on consideration or initiating structure alone has a straight forward impact on the performance of subordinates. Thus. and who stay with the organization longer. .5 Leadership effectiveness depends on a fit between the leader’s behaviour and the demands of the situation. direct or plan their work. The key question that must be addressed is : Which style of leadership is most effective? As we would expect. the main conclusion that can be drawn from the behavioural theories of leadership is that a more considerate leadership style will cause subordinates to be more satisfied. Manager 3 does a lost of planning. however.

IV. Group and Exchange Theories of Leadership: The group theories of leadership have their roots in social psychology. 1. There must be a positive exchange between the leader and followers in order for group goals to be accomplished. and performance. which is the most critical variable in determining the situation‟s favourableness. Fiedler’s contingency model of leadership effectiveness This model contained the relationship between leadership style and the favourableness of the situation. which is the second most important input into the favourableness of situation. Situational favourableness was described by Fiedler in terms of three empirically derived dimensions. satisfaction. style is associated with the leader who gives a very unfavourable description of the least preferred coworker.III. . style is associated with the leader who gives a relatively favourable description of the least preferred coworkers. The human relations. or “lenient”. The leader-member relationship. The task-directed. Classic exchange theory. A few important research studies indicate that followers / subordinates may actually affect leaders as much as leaders affect followers / subordinates. A through review of research indicated that leaders who take into account and support their followers have a positive impact on attitudes. This LPC approach calculates the degree to which leaders favourably perceive their worst coworkers and relates to leadership style in the following manner. Fiedler developed a unique operational technique to measure leadership style. or “hard-nosed”. 3. Measurement is obtained from scores that indicate the Least Preferred Coworkers (LPC). 2. The leader‟s position power obtained through formal authority. This means simply that the leader provides more benefits / rewards than burdens costs for followers. serves as an important basis for this approach. The degree of task structure. which is the third most critical dimension of the situation. 1. in particular. 2. Contingency Theories of Leadership: Fred Fielder proposes a widely recognized situation-based model for leadership effectiveness.

Situations are favourable to the leader if all three of the above dimensions are high and vice-versa. When Fiedler examined the relationships among type of leader situational favourability. SITUATIONAL FAVOURABILITY Very Favourable High Task oriented leader Moderately Favourable Relationship oriented leader Very unfavourable Task oriented leader PERFORMANCE EFFECTIVENESS Low Relationship oriented leader Task oriented leader Relationship oriented leader Fig. the pattern diagramed in the following figure emerged. these are: 1. Supportive leadership: The leader is friendly and approachable and shows a genuine concern for subordinates. This is a healthy development because leadership is closely related to work motivation on the one hand and power on the other. and specific directions are given by the leader. There is no participation by subordinates.Path-Goal Leadership Theory: It is derived from the expectancy framework of motivation theory. and task performance. 4. 6: Relationships among leadership style. 3. Achievement-oriented leadership: The leader sets challenging goals for subordinates and shows confidence that they will attain these goals and perform well. and performance effectiveness V. 2. Participative leadership: The leader asks for and uses suggestions from subordinates but still makes the decisions. . situational favourability. Briefly summarized. The House Version of the theory incorporates four major types or styles of leadership. Directive leadership: Subordinates know what is expected of them.

This is specifically accomplished by the leader as follows: 1. which in turn leads to their role clarity. Reducing frustrating barriers. 3.Two of the situational factors that have been identified so far are the personal characteristics of subordinates and the environmental pressures and demands facing subordinates. Helping subordinates clarify expectancies 5. Subordinate characteristics Locus of control & / or ability Leader Behaviour / Styles Directive Supportive Participative Achievement-oriented Subordinates Perception Motivation Outcomes Satisfaction Role clarity Goal clarity Performance Environmental Forces Task characteristics Formal authority system Primary work group Fig. 6. the leader attempts to influence subordinates‟ perceptions and motivate them. 2. Making the path to those payoffs easier to travel by coaching and direction. 7: A summary of path-goal relationship . Increasing the opportunities for personal satisfaction contingent on effective performance. 4. Increasing personal pay offs to subordinates for work-goal attainment. Using one of the four styles contingent upon the situational factors as outlined above. The following figure summarizes this path-goal approach. Recognizing and / or arousing subordinates‟ needs for outcomes overwhich the leader has some control. goal expectancies. satisfaction and performance.

and the use of personal example.VI. A social Learning Approach: Social learning theory can provide a model for the continuous. impression-management skills. Leader traits that foster charismatic attributions include self-confidence. Charismatic leaders have superior debating and persuasive skills and technical expertise. Included in the extensions of charismatic leadership is also the recognition of a darkside. the environment and the behaviour. Charisma is an attributional phenomenon and it varies with the situation. House suggests that charismatic leaders are characterized by self-confidence and confidence in subordinates. Charismatic leaders tend to be portrayed as wonderful heroes. Charismatic Leadership Theories: The modern development of charismatic concept is attributed to the work of Robert House. ideological vision. exhibit extreme loyalty to and confidence in the leader. but as the following table shows there can also be unethical considerations associated with charismatic leaders. behavioural. On the basis of the analysis of political and religious leaders. and empathy. EMERGING THEORETICAL FRAMEWORKS FOR LEADERSHIP 1. and foster attitudinal. 8: A Social Learning approach to Leadership VII. Situations that promotes charismatic leadership include a crisis requiring dramatic change. or followers who are very dissatisfied with the status quo. and emotional changes in their followers. Followers of charismatic leaders identify with the leader and the mission of the leader. emulate the leader‟s values and behaviour and derive self-esteem from their relationship with the leader. social sensitivity. These interactions are shown in the following figure. . LEADER (includes cognitions) LEADER BEHAVIOUR ENVIRONMENT Fig. high expectations for subordinates. reciprocal interaction between the leader.

external moral standards to satisfy self interests.  Demands own decisions accepted without question  One-way communication  Insensitive to followers‟ needs be  Stimulates followers to think independently and to question the leader‟s view. shares recognition with others  Relies on internal moral standards to satisfy organizational and societal interests 2. beliefs and needs of their followers. The more traditional transactional leadership involves an exchange relationship between leaders and followers. The following table summarizes the characteristics and approaches of transactional versus transformational leaders. Transformational Leadership Theory:  Relies on convenient. .Table: 4 Ethical and unethical characteristics of charismatic leaders. but transformational leadership is based more on leaders‟ shifting the values. Burns identified two types of political leadership: transactional and transformational. Identifying charismatic characteristics of leaders can become very important organizations transform traditional ways of being led to meet the challenge of dramatic change. It is this transformation process that has led to the transformational theory. develops and supports followers.  Open. Ethical charismatic leader  Uses power to serve others  Aligns vision with followers‟ needs and aspirations  Considers criticism and learns from Unethical charismatic leader  Uses power only for personal gain  Promotes own personal vision  Censures critical or opposing views. two-way communication  Coaches.

promotion. On the basis of his research findings. of Transactional Versus Transactional Leaders 1. takes corrective action. Intellectual stimulation: Promotes intelligence. Management by exception (passive):Intervenes only if standards are not met. He suggests that fostering transformation leadership through policies of recruitment. Contingent Reward: Contracts exchange of rewards for effort. well-being. . 4. 3. 4. instills pride. training and development will pay off in the health. gains respect and trust. Laissez-faire: Abdicates responsibilities and avoids making decisions. Inspiration: Communicates high expectations. treats each employee individually. 2.Table:5 Characteristics and Approaches Transformational Leaders. promises rewards for good performance. expresses important purposes in simple ways. recognizes accomplishments. coaches and advises. Transformational Leaders 1. selection. uses symbols to focus efforts. rationality and careful problem solving. 2. Charisma: Provides vision and sense of mission. 3. and effective performance of today‟s organizations. Individual Consideration: Gives personal attention. Management by exception (active): Watches and searches for deviations from rules and regulations and standards. Bass includes that transactional leadership is a prescription for mediocrity and that transformational leadership leads to superior performance in organizations facing demands for renewal and change.

Power is the ability to influence and control others in the organization. 1. . time-specific and issue-specific. Power is broader than authority. ambiguity and uncertainty. POWER & POLITICS According to Stephen P.Robbins “Power is the ability to get things done in the way one wants them to be done”. Power can expand and contract 5. Power includes dependency and reciprocal relationships 4. 3. It includes organizational authority plus the personal elements of the power holder. If an authority or person does not exercise his power he is failing in his duty. It arises from a source. somebody else will exercise that power. (2) They are courageous (3) They believe in people (4) They are value-driven (5) They are lifelong learners (6) They have the ability to deal with complexity. It is person-specific.Tichy and Devanna conducted interviews with top executives of major companies and found that effective transformational leaders share the following characteristics. The greater and stronger the source. (1) They identify themselves as change agents. 7. May be. (7) They are visionaries. Power is the most important dimension of any organizational activity. 6. the greater is the power. Power has both positive and negative aspects. Power is interpersonal in nature 2.

. BERLES’ LAW OF POWER 1. Apparent power – which the power holder shows. 6. Power is a personalized aspect of management. 3. divided by attempts of power exercise. 2. Connection power – power that arises on account of ability to co-ordinate or liaise with many people. Information power – It arises due to possession of valuable information. though he may not possess. Random power – It is the ability to reward or punish. Reflected power – which a person exercises in the name of another authority. 4. Power will fill any vacuum in the organization. MANAGEMENT OF POWER Herbert Goldhammer and Shills have proposed the following measurement: THE AMOUNT OF POWER OF AN INDIVIDUAL = Successful events or exercise of power. Coercive power – It is the ability to pressurize others into obedience.SOURCES OF POWER 1. Without power chaos will exist. 5. 7. Power is exercised through institutional positions. indirect methods of bringing about compliance. Power co-exists with responsibility. 2. 8. 3. 4. Expert power – It arises from knowledge or skill of the boss. Legitimate power – It is based on position in the organization.

7. There has to be a difference in their powers which is called “power distance”. There are variations. Scapegoating others. The more “y” depends on “x”.HERBERT GOLDHAMMER AND SHILLS. 6. . or reciprocal behaviour. Generally. 5. the more “x” can exercise powers on “y”. 4. POLITICS “When power is exercised for personal gains it is politics. It exists in all organizations. DIMENSIONS OF POLITICAL BEHAVIOUR 1. 9. more the politicking. DEPENDENCY – Power is exercised in a situation of dependency. Generally individuals try to reduce power distance with superiors and increase power distance with subordinates. Passing the buck-not taking responsibility Red herring tactics (giving false leads or ideas) Sabotage. POWER DYNAMICS DISTRIBUTION – Power is never distributed equally across managers in an organization. greater the power. COMPLIANCE – People comply with legitimate power and expert power more often than other forms. UNCERTAINITY OF POWER – Power is uncertain like all other aspects of an organization. Very often people feel that politicking is necessary for advancement of career. That means more politics is involved at top management than in lower levels. 3. accommodation and bargaining”. 8.MULDER’S THEORY OF POWER DISTANCE No two individuals can be in same position in the organization when it comes to power. Manipulation of information Discrediting others – denying credit or robbing credit Forming cliques and coteries Building bad image / label on others Creating quid-pro-quos. 2. Many times organizational decisions are made not in rational manner but due to compromise.

and c) influence the behaviour of people in the organization. “Climate may be thought of as the perception of the characteristics of an organization. It may also be viewed as the degree to which organizational rules are enforced by the administrative component. b) are relatively enduring over a period of time. Management Orientation (Style) 7. Degree of Trust 11. Reward System 8. Organizational climate conveys the impressions people have of the organizational internal environment within which they work. Individual Freedom 4.UNIT – V DYNAMICS OF ORGANISATIONAL BEHAVIOUR ORGANIZATIONAL CLIMATE Concept: According to Joe Kelly. Degree of control 5. Conflict Management 10.” DIMENSIONS OF ORGANIZATIONAL CLIMATE 1. Communication 9. Members‟ Orientation 2. Interpersonal relationships 3. Forehand and Gilmer have defined organizational climate as “a set of characteristics that describe an organization and that: a) distinguish one organization from another. Risk – taking . Type of Structure 6.

Two.way Communication 2. functions etc.Factors Influencing Organizational Climate Lawrence James and Allan Jones have classified the factors that influence organizational climate into five major components. 1. Participative decision – making 4. degree of centralization and operating procedures 3. goals and objectives. Leadership Process – leadership styles. Physical Environment – employee safety. communication. Organizational values and norms –conformity. impersonality and reciprocity. procedures and rules 5. Organization Structure – size. loyalty. Improving Organizational Climate The following techniques may be helpful in improving the organizational climate 1. Technological changes . working conditions and physical space characteristics 5. environmental stresses. Organizational Context – mission. Change in policies. 2. Concern for people 3. decision – making and related processes 4.

In general. Moreover. In contrast. seem to have some impact on employee job satisfaction. and pay. supervision is a moderately important source of job satisfaction. Promotion: Promotional opportunities have a moderate impact on job satisfaction. 4. A promotion to a higher level in an organization typically involves positive changes in supervision. Sources (causes) of Job satisfaction 1. The work itself : The two most important aspects of the work itself that influence job satisfaction are variety and control over work methods and work place. 2. job content. Jobs that give workers some autonomy in how they do their work also provide the greatest job satisfaction. Supervisors who establish a supportive personal relationship with subordinates and take a personal interest in them contribute to their employees‟ satisfaction. Pay: Wages do play a significant role in determining job satisfaction. Pay is such an important determinant of job satisfaction because it is instrumental in fulfilling the needs. Supervision: Like promotion. Executives gain comparatively greater rewards from their promotions than blue – collar and white – collar clerical workers. When we say that an individual has high satisfaction. more challenging work assignments. Jobs with too much variety and stimulation cause workers to feel psychologically stressed and “burned out”. and are as significant to while – collar workers as to blue – collar workers. we mean that the individual generally likes and values his job highly and feels positively towards it. jobs with a moderate amount of variety produce the most job satisfaction. management control over work methods and work place consistently leads to high levels of job dissatisfaction. . The first dimension is employee – centeredness or consideration. and higher salary. 3. Two dimensions of supervisory style in particular. pay can serve as a symbol of achievement and a source for recognition.JOB SATISFACTION Meaning: Job satisfaction will be defined as the amount of overall positive affect (or feelings) that individuals have towards their jobs. Jobs that are at the higher levels of an organization usually provide workers with more freedom. Jobs with too little variety cause workers to feel bored and fatigued.

6. EXPECTATIONS ABOUT JOB ACTUAL JOB CONDITIONS DISCREPANCIES Pay Work itself. Promotions. Coworkers. Promotions. Work Group: Having friendly and cooperative coworkers is a modest source of job satisfaction to individual employees. cleanliness of the workplace. too. Employees who participate in decisions that affects their jobs display a much higher level of satisfaction with their supervisors and with their overall work situation. lightning and noise. Supervision. contribute in a modest way to job satisfaction. humidity. and especially dislike jobs in which they are physically separated from each other. and adequate tools and equipment can all affect job satisfaction. 5. 1: A Model of job satisfaction . or participation. A Model of Job Satisfaction The model of job satisfaction presented in the following figure summarizes what we know about what determines whether employees will be generally satisfied.The other dimension of supervisory style that seems to contribute to employees‟ satisfaction is influence. The work group also serves as a social support – system for employees. work schedules. Working conditions Fig. Supervision. People like the opportunity to have conversation with each other as they work. ventilation. Working conditions EMPLOYEE JOB SATISFACTION Pay Work itself. Working conditions: Working conditions. Coworkers. in decision making. Features such as temperature.

Are satisfied workers more productive workers? It seems somehow natural that more positive feelings about work would lead to greater output and higher –quality work. rather than vice. 1. five decades of research into this issue does not lend support to this belief. job satisfaction is determined by the discrepancy between what individuals expect to get out of their jobs and what the job actually offers: A person will be dissatisfied if there is less than the desired amount of a job characteristic in the job. we examine the ways in which job satisfaction affects employee behaviour. the relationship between job satisfaction and job performance is weak. the condition of the work equipment or the worker‟s own abilities – have a much greater impact on how much a person can produce than his or her job satisfaction does. the person will be dissatisfied. Other factors. CONSEQUENCES OF JOB SATISFACTION Now. First. there is none some important to managers as performance. if a person expects to be promoted in six months and then is not. besides job satisfaction – for instance.Basically. there is substantial evidence to suggest that job performance leads to job satisfaction. performance leads to satisfaction and rewards play a major role in the relationship. For instance.Performance: Of all the behaviours that job satisfaction or dissatisfaction could affect. Unfortunately. Second. Perceived equity of rewards Intrinsic rewards Performance (accomplishment) Extrinsic rewards Fig . As the following figure indicates. 2:The relationship between satisfaction and performance Satisfaction . A person will be satisfied if there is no discrepancy between desired and actual conditions.versa. Empirical research studies suggest that these tow variables are not closely related to each other in any simple fashion.

the model would predict that these poor performers will be less satisfied with their jobs. . Collective actionunionization may be their best solution. it is important to note that the availability of other places of employment also influences turnover. Moreover. This is because low –paid workers will incur relatively little loss of income if they are absent. by arbitrary and strict discipline. they don‟t perceive that they need them. days off not due to illness or personal business). Workers who have successfully completed their jobs will receive more intrinsic rewards (e. employees who perform poorly will probably feel worse about their competence and will probably also receive less pay and fewer promotions.e. Consequently. As a result of all these rewards. In an important study of union organizing. 2.g.Employees who perform well should receive both more intrinsic rewards and more extrinsic rewards. employees who perform well should also receive more extrinsic rewards (e. 3. Relatively low-paid workers are especially likely to take days off when they are frustrated with work. Withdrawal behaviour: a) Turnover: Turnover is of considerable concern to managers because it disrupts normal operations and necessitates the costly selection and training of replacements.g. Workers who are dissatisfied are more likely to take “mental health” days (i. When employers fail to respond to employee complaints employees realize that their power is not sufficient to deal with their employers. Satisfied employees are seldom interested in unions. pay and promotions) in recognition of their superior work. feelings of accomplishment) as a result of their efforts. while the relationship between job satisfaction and turnover is strong. b) Absenteeism: Job satisfaction is also highly related to absenteeism. Union Activity: Job dissatisfaction is major cause of unionization. Employees become frustrated by low wages. However. In contrast. researchers found that employees‟ interest in unionization is based on dissatisfaction with working conditions and a perceived lack of influence to change those conditions. and by uncorrected safety hazards. the best performers will also be the most satisfied workers. Workers who have relatively low levels of job satisfaction are indeed the most likely to quit their jobs.

Lack of respect given by media 3. uninteresting work Job Satisfaction surveys: Now. we shall discuss the use of job satisfaction surveys in organizations. Declining earning power Blue – Collar Workers 1. Measuring Job satisfaction: While a wide variety of instruments are available for use in surveying job related attitudes. Over-qualification for jobs 3. Lack of influence in decision making 2. Frequent layoffs during recessions 3. and blue collar workers Table: 1 Changes in Attitudes of workers Three Dissatisfied Work Groups Young Workers 1. we are concerned with three issues: 1) What are the most reliable and valid methods of measuring job satisfaction? 2) When should job satisfaction surveys be utilized? 3) How should job satisfaction surveys be administered? I. . Lack of mobility out of blue – collar jobs 2.It is also not surprising that job dissatisfaction has an impact on other union activities. Recent changes in Job satisfaction Levels Let‟s look at the changes in attitudes among three large groups of workers: the young (under 30). such as calling strikes or filing union grievances. a few stand out as especially useful: the Job Descriptive Index (JDI). Low pay. Work units with low levels of job satisfaction do have more strikes and file more grievances than units with high levels of job satisfaction. Unrealistic job expectations 2. Unresponsiveness to authoritarian management Middle Managers 1. the Minnesota Satisfaction Questionnaire (MSQ) and the Porter Need Satisfaction Questionnaire (NSQ). middle managers. More specifically.

The JDI has separate satisfaction scales for pay.a) Job Descriptive Index: Probably the most well known job satisfaction survey is the Job Descriptive Index (JDI). work and coworkers. supervision. It has been used in a large variety of organizations with employees from all different levels of education and income. It requires only ten to fifteen minutes to administer and is also available in a Spanish – language version. promotion. Work on Present Job – Routine – Satisfying – Good – Uninteresting Present Pay – Adequate – Insecure – Less than I deserve – High paid Opportunities for Promotion – Promotion on merit – Promotion on seniority – Dead – end job – Unfair promotion policy . For example.

Sample items appear in the following figure. Porter Need Satisfaction Questionnaire: The NSQ is typically used for management workers only. Very Sat. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Ability utilization Achievement Activity Advancement Authority Company policies & Practices Compensation Coworkers Creativity Independence Moral Values Recognition Responsibility Security Social Service Social Status Supervision-human relations Supervision – technical Variety Working conditions : : : : : : : : : : : : : : : : : : : :                                                                                                     General satisfaction can be measured by summing the scores for all twenty items. While the JDI gives abroad picture of employees‟ attitudes towards five major components of their jobs.b) Minnesota Satisfaction Questionnaire: The Minnesota Satisfaction Questionnaire (MSQ) has 100 items. c. the MSQ gives a more detailed picture of employees‟ specific satisfaction and dissatisfaction. . 5 items for each of the following 20 factors. Very Dissat Dissat N Sat. Its questions focus mostly on the particular problems and challenges of managerial jobs.

How much should there be? (Minimum) 1 2 3 4 5 6 7 (Maximum) Attributes of Good Surveys There are several characteristics that make these three instruments so well respected: 1. and high numbers represent high or maximum amounts. The opportunity for personal growth and development in my management position. consistent results. How much is there now? (Minimum) 1 2 3 4 5 6 7 (Maximum) b. 4. and provide clear instructions to respondents. The feeling of security in my managerial position a. How much is there now? (Minimum) 1 2 3 4 5 6 7 (Maximum) b.Sample Items from the Porter Need Satisfaction Questionnaire Instructions: Circle the number on the scale that represents the amount of the characteristic being rated. How much should there be? (Minimum) 1 2 3 4 5 6 7 (Maximum) 2. a. Reliability: These instruments have been demonstrated to produce stable. Validity: These instruments measure what they are intended to measure. 3. Languages Level: The item in these scales are clearly and unambiguously worded and can be used in many different firms. Low numbers represent low or minimum amounts. 1. Content: These survey instruments identify the wide range of factors that affect work life and organizational effectiveness. 2. .

5. It is important. problem – solving committees can be set up to work on specific problems identified by the attitude survey. Explaining the purposes of the survey: Management has to be honest with employees about the purposes of the survey and what will be done with the results. Standardizing the conditions of survey administration: Times for employees to complete the survey have to be arranged and rooms for taking the survey have to be provided. To discover the causes of absenteeism and turnover 3. 3. 2. Sampling: Obviously it is much less expensive to survey a representative subgroup of the population than to canvass or survey the entire population. To diagnose potential problems in organizations. III. 4. such as “Why are we doing a survey now?” 5.II. 2. It should not give false promises and create false expectations. 1. To assess the impact of organizational changes on employee attitudes. Moreover. Survey Administration: Some important factors that managers might want to consider in conducting job satisfaction surveys include the following. Timing: Satisfaction surveys are most effective if they are set up as part of a regularly scheduled. To stimulate better communication between management and workers. too. long-term programme. Feedback meeting: It is generally a good idea to hold discussions between managers and workers after the results of the satisfaction survey have been tabulated. To provide accurate information about the degree to which employees may be willing to vote for a union if given the chance. . that survey administrators be trained in how to answer frequent or typical questions. 4. Uses of Job Satisfaction Surveys: 1.

The organization is treated as an interrelated whole and no part of the organization can be changed without affecting other parts. Managers should be more concerned about the impact of job satisfaction on employee turnover. 5. it is important for managers to look not only at overall job satisfaction. collect data. Broad based: OD is used broadly to describe a variety of change programmes 3. job satisfaction surveys can provide managers with a wealth of data about their work units. 5. Long range effort 2. Systems view: It recognizes that organizational structure and managerial performance are mutually interdependent. absenteeism and unionization. . Dynamic process 4.Keys to Effective Management 1. 2. Managers should be especially concerned with employee complaints about low pay and unchallenging work. It designed and administered effectively. but also at who is satisfied. Research – based: Most of the OD interventions are research based. 4. groups and total organizational system. It is an attempt to improve the overall organizational efficiency. In assessing the levels of job satisfaction. OD aims at improving the work effectiveness of individuals. They conduct surveys. 3. Managers need to be aware that increasing job satisfaction is not a likely solution to increasing productivity. CHARACTERISTICS: 1. ORGANIZATIONAL DEVELOPMENT OD is a practical and systematic approach to launching and diffusing change in organizations. evaluate and then take decisions.

To increase the level of enthusiasm and personal satisfaction in the organization. Problem identification and definition 2. laterally. To increase the openness of communications. Evaluation and feedback 2. Planning of change and its implementation 5. Objectives: 1. Diagnosis 4. To find solutions to problems with greater frequency To increase the level of self and group responsibility in planning and implementation. 7. 4. Goal setting and planning 7. Collection of necessary data 3. 5. vertically and diagonally. 3.6. . 6. Normative re-educative strategy: OD is based on the principle that “norms form the basis for behaviour and change is a re-educative process of replacing old by new ones”. To increase the level of trust and mutual emotional support among all organizational members. To increase the incidence of confrontation of organizational problems both within groups and among groups To create an environment in which authority of assigned role is augmented by authority based on knowledge and skill. OD PROCESS It consists of the following steps: 1.

Joint action planning (Objectives) Action behaviour for accomplishing these objectives Action behaviour New plan of act Feedback to client Determination of Objectives & Plan of action Discussion and work of this feedback Data gathering and Diagnosis by the Co-consultant Discussion and work on these problems Feedback to client group Organizational Perceptions of the Problem Feedback to client group problems Reassessment of things through data gathering Data gathering Fig. 3: The action research model .Action Research: A Model of Organization Development: The model involves an extensive collaboration between the OD consultant and the client organization.

4: Team Building Cycle . Trainees are expected to assume heavy responsibility for selecting discussion subjects. The main purpose is to improve effectiveness of work. sex and ethics.Techniques of OD training. He primarily tries to get participants to examine the group behaviour. including their own. The objective is to improve interpersonal relations. 2. 1 Problem 6 Evaluation Data gathering 2 5 Implementation Diagnosis 3 Planning 4 Fig. which might include parental influence. The group begins its activity with no formal agenda. Team-Building: The process of making teams effective is called team building. It consists of a small group of ten to twelve people. The role of the trainer is passive. Participants. Sensitivity training: It is also known as T. often strangers to one another. authority. empathy. gather in a T-group. Discussions are often very personal and emotional. and may become heated.

5: Grid Training Process . It involves two parts and six overlapping phases Part – I Part –II Management Development Organization Development Evaluation Goal Attainment Organization Development Organizational goal setting Inter group development Team development Management Development Laboratory Seminar Training Fig. Feedback the information to the employees c.3. Follow – up 4. Grid Training: The objective is to develop manager‟s leadership skills. Survey Feedback: Steps: a. Develop an action plan d. Collection of data b.

5. MBO (Management by Objectives): Steps 1. System Four Management: System1: Exploitative – Autocratic (strict) – No freedom. Setting of Organisational Objectives 2.Threats & punishments System 2: Benevolent – Autocratic – Some freedom for subordinates – Few rewards System 3: Consultative – Democratic  Substantial but not complete confidence  Major decisions centralized at the top  Some decisions decentralized at lower levels System 4: Participative – Democratic  Full confidence in subordinates  Decision making highly decentralized 6. Formulation of Departmental Objectives 3. Establishing quantitative standards for performance 5. Establishing goals or targets of subordinates 4. Appraisal of performance and counseling .

ORGANIZATIONAL CHANGE Change is an alteration of an organization‟s environment. structure. technology or people. This. The following table summarizes six specific forces that are acting as stimulants for change. Table : 2 Forces for change Forces Nature of the Work force Examples  More cultural diversity  Increase in professionals  Many new entrants with inadequate skills  Faster and cheaper computers  TQM programmes  Reengineering programmes             Asian real estate collapse Russian devaluation of the ruble Change in oil prices Global competitors Mergers and consolidations Growth of e –commerce Attitude towards smokers Delayed marriage by young people Popularity of sport –utility vehicle Collapse of Soviet Union Opening of markets in China Black rule of South Africa Technology Economic Shocks Competition Social trends World Politics . Forces for change: More and more organizations today face a dynamic and changing environment. requires these organizations to adapt. Handling change in an integral part of every manager‟s job. inturn. Change is an organizational reality.

What can change Agents change? What can a change agent change? The options essentially fall into four categories: Structure. physical setting and people. Changes within an organization need a catalyst. perception. Changing technology encompasses modifications in the way work is processed and in the methods and equipment used. Changing the physical setting covers altering the space and layout managements in the workplace. job redesign. technology. and behaviour. or similar structural variables. Change agents can be managers or non –managers. proactive and purposeful. 6: Change Options: Changing structure involves making an alteration in authority relations. Changing people refers to changes in employee attitudes. skills. People who act as catalysts and assume the responsibility for managing the change process are called change agents.Managing Planned change: Planned change is concerned with change activities that are intentional and goal oriented. . employees of the organization or outside consultants. The sources of resistance fall into two categories: Individual and Organizational sources. coordination mechanisms. Resistance to change: One of the most-well-documented findings from studies of individual and organizational behaviour is that organizations and their members resist change. What are the change options? Structure Technology Physical setting People Fig. expectations. It is also concerned with changing the behaviour of individuals and groups within the organization.

b. the introduction of TQM means production workers will have to learn statistical process control techniques. develop a negative attitude towards TQM or behave dysfunctionally if required to use statistical techniques.Another cause of resistance is the fear of losing what one already possesses. which exist to open minds and challenge established doctrine. whether the need for their service changes or remains the same. we are creatures of habit. Concern over personal loss:. we all rely on habits or programmed responses. are themselves extremely resistant to change. Security. a. Life is complex enough. Educational institutions. Size major sources of organizational resistance have been identified. If. The more people they resist change. Fear of the unknown. Employees in organizations have the dislike for uncertainty. therefore. we don‟t need to consider the full range of options for the hundreds of decisions we have to make every day. by their very nature. e. Organizational Resistance:. they fear loss of their position. or other benefits that they value. authority. Concern over personal loss. d. Habit: As human beings. money. They actively resist change. for example. Security : People with a high need for security are likely to resist change because it threatens their feelings of safety. Belief: A final cause of resistance is a person‟s belief that the change is incompatible with the goals and best interests of the organization. friendships. this tendency to respond in our accustomed ways becomes a source of resistance. Change threatens the investment in the status quo. They are as follows: . Government agencies want to continue doing what they have been doing for years. That is v\why senior employees‟ resists change more than do relatively new employees. To cope with this complexity. personal convenience. and the belief that the change is not in the organization‟s best interest.Individual Resistance: Individual sources of resistance to change reside in basic human characteristics such as perceptions. But when confronted with change.Organizations. some may fear they will be unable to do so. Fear of the Unknown: Changes substitute ambiguity and uncertainty for the known. Because. An individual is likely to resist changes for the following reasons: Habit. c. They may. personalities and needs. are conservative.

For example. But if union norms dictate resisting any unilateral change made by management. .Those groups in the organization that control sizable resources often see change as a threat. The introduction of decentralized personal computers.Even if individuals want to change their behaviour. When an organization is confronted with change this structural inertia acts as a counter balance to sustain stability. if management changes the technological processes without simultaneously modifying the organization‟s structure to match. Structural Inertia: Organizations have built – in mechanisms to produce stability. Group Inertia:.Why? Because decentralized end – user computing was a threat to the specialized skills held by those in the centralized information systems departments. 2. Training and other socialization techniques reinforce specific role requirements and skills. Threat to Expertise: Changes in organizational patterns may threaten the expertise of specialized groups. may be willing to accept changes in his job suggested by management.1. 6. is an example of a change that was strongly resisted by many information systems departments in the early 1980s. An individual union member. the change in technology is not likely to be accepted. You cannot change one without affecting the others. Threat to established resource allocations:. for instance. Formalization provides job descriptions. 5. The people who are hired into an organization are chosen for fit. the selection process systematically selects certain people in and certain people out. So limited changes in sub systems tend to get nullified by the larger system. Threat to established power relationships:. Limited forces of change:. group norms may act as a constraint. he is likely to resist. 4. 3. rules and procedures for employees to follow. For example.Any redistribution of decision-making authority can threaten long – established power relationships within the organization. which allow managers to gain access to information directly from a company‟s main frame. they are then shaped and directed to behave in certain ways. The introduction of participative decision-making or self – managed work teams is the kind of change that is often seen as threatening by supervisors and middle managers.Organizations are made up of interdependent subsystems.

opens door for others to apply pressure. mean a reduction in their budgets or a cut in their staff size? Those that most benefit from the current allocation of resources often feel threatened by changes that may affect future allocations. facilitation and support. These include education and communication. for instance.They tend to be content with the way things are. negotiation. and coercion. easy way to gain support Inexpensive. too Can back fire. Will the change. participation. These tactics are described in the following exhibit Table 3: Techniques for reducing resistance to change Techniques Education and Communication When used When resistance is due to misinformation When resisters have the expertise to make a contribution When resisters are fearful and anxiety ridden Necessary when resistance comes from a powerful group When a powerful group‟s endorsement is needed When a powerful group‟s endorsement is needed Advantages Clear up misunderstanding Disadvantages May not work where mutual trust and credibility are lacking Time-consuming. causing change agent to lose credibility May be illegal. easy way to gain support Coercion . no guarantee of success Potentially high cost. Techniques for overcoming resistance to change When management sees resistance to change as dysfunctional. has potential for a poor solution Expensive. manipulation and cooptation. what actions can it take? Several tactics have been suggested for use by managers or other change agents in dealing with resistance to change. may undermine change agent‟s credibility Participation Increases involvement and acceptance Can facilitate needed adjustments Can “buy” commitment Facilitation and support Negotiation Manipulation and cooptation Inexpensive.

To move from this equilibrium – to overcome the pressures of both individual resistance and group conformity. Unfreezing Movement Refreezing Fig.Approaches to Managing Organizational change 1.unfreezing is necessary. Desired State Restraining forces Status Quo Driving Forces Time Fig. 8: Unfreezing the Status quo . It can be achieved in one of three ways. and refreezing the new change to make it permanent. LEWIN’S THREE – STEP MODEL: Kurt Lewin argued that successful change in organizations should follow three steps: Unfreezing the status quo. Refreezing means stabilizing a change intervention by balancing driving and restraining forces. The status quo can be considered to be an equilibrium state. movement to a new state. 7: Lewin’s Three – step Change Model Unfreezing refers to change efforts to overcome the pressures of both individual resistance and group conformity.

being. Their importance lies in providing a scientific methodology for managing planned change. authenticity. 3. organizations deemphasize (iv) Confrontation: Problems should not be swept under the rug.The more that people who will be affected by a change are involved in the decisions surrounding that change. (v) Participation:. The following briefly identifies the underlying values in most OD efforts. analysis. The restraining forces. which direct behaviour away from the status quo. Organizational Development: Organizational Development (OD) is a term used to encompass a collection of planned – change interventions built on humanistic – democratic values that seek to improve organizational effectiveness and employee well. . and a supportive climate. They should be treated with dignity and respect. which hinder movement from the existing equilibrium. A third alternative is to combine the first two approaches. They should be openly confronted. conscientious and caring. (iii) Power Equalization: Effective hierarchical authority and control. (i) Respect for people:Individuals are perceived as being responsible. can be decreased. (ii) Trust and Support:. openness.The effective and healthy organization is characterized by trust. The process of action research consists of five steps: diagnosis. the more they will be committed to implementing those decisions. Action Research: Action research refers to a change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.The driving forces. action and evaluation. feedback. can be increased. 2.

Efficiency Vs Effectiveness Effectiveness is the achievement of objectives. They are – individual. given certain resources and means. The relationship among these three perspectives of effectiveness is shown in the following diagram Organizational Effectiveness Group Effectiveness Individual Effectiveness Fig. Effectiveness means doing the right things. achieves its objectives without placing undue strain on its members. 2. 9: Three different perspectives of effectiveness . group and organizational effectiveness. Perspectives on Effectiveness David Lawless highlights the importance of three perspectives of effectiveness. Organizational effectiveness is the extent to which an organization.ORGANIZATIONAL EFFECTIVENSS Concept: Many people define effectiveness in terms to a single evaluation criterion. For instance: 1. 4. and efficiency means doing the things right. Efficiency is the achievement of the ends with the least amount of resources. Effectiveness is the ability of an organization to mobilize its centres of power for action – production and adaptation. 3. Effectiveness of an organization can be seen in terms of survival of the organization. Effectiveness could be defined as the degree to which organization realizes its goals.

group and organizational effectiveness The causes of organizational effectiveness include technology. 10: Relationship among individual. environmental. motivation. namely. . socialization etc. The goal approach has widespread common sense and practical appeal. Goal attainment is probably the most widely used criterion of organizational effectiveness. Causes of organizational effectiveness Organizational effectiveness Causes of group effectiveness Group effectiveness Causes of individual effectiveness Individual effectiveness Fig. systems approach. Organization‟s effectiveness is appraised in terms of the accomplishment of ends rather than means.The causes of individual effectiveness include physical attributes. personality traits. A. Approaches to Organizational Effectiveness There are four broad approaches to OE. competence and many other variables. morale. The Goal Attainment Approach: An organization primarily exists to accomplish goals. etc. the goal attainment approach. strategic constituencies approach and the behavioural approach. communication. The causes of group effectiveness comprise of leadership.

The important variables in business organization are productivity. and initiation. and efficiency and research and development‟s goals are the professional competence and development. conformity. The difference between these two models is explained in terms of ultimate criterion. 11: Price’s Model of Organizational Effectiveness Mahoney and Weitzel – An Empirical Study Mahoney and Weitzel have developed models for two types of organizations – general business organizations and research and development organizational units.Some research studies James L Price – A Conceptual Study Price has reviewed and analyzed fifty studies and developed a model comprising of a dependent variable called “effectiveness” and five intervening independent variables. The important variables for research development are reliability.control system. namely. . planning. Business organization has ultimate goals of profitability. reliability. adaptiveness and institutionalization. productivity. These scholars have identified twenty four variables that are useful in predicting effectiveness. there are five systems –economic system. co –operation. The economic system The political system The control system The population system The ecology system Productivity Conformity Morale Adaptiveness Institutionalization Effectiveness Fig. political system. productivity. These systems through intervening variables determine effectiveness. In his model.(internal and external system). and ecology system (or environmental system). The following figure depicts his model. population system. and development. support and utilization. morale.

13: Research and Development Model .12: General Business Model Initiation Planning Flexibility Supervision & Control Co-operation Cohension Research and Development Model Overall effectiveness Reliability Co-operation Development Productivity Flexibility Planning Supervisory Control Cohesion Coordination Fig.These models are presented here under General Business Model Overall Effectiveness Reliability Productivity Utilization Support Development Supervisory support Fig.

Providing an inclusive taxonomy of resources ii. Absence of intra. production cost. i. work force growth. The effectiveness of total system is dependent on the performance of all its sub-parts.B. . Systems Approach to Organizational Effectiveness: A systems approach to OE implies that organizations are made up interrelated and interacting elements. business mix. These effectiveness dimensions are business volume. member productivity. and market penetration. According to them. The open – system perspective emphasizes the inter – relationships between various parts of an organizations and its environment as they jointly influence effectiveness. Determining the relative positions for the compared organizations on the basis of information concerning the amounts and kinds of resources available for the organization and its efficiency in using these resources to get further resources. iii. According to them. viz. iii. Identifying different types of resources that are mutually relevant for the organizations under study. ii. youthfulness of members. organizational effectiveness can be assessed by the following steps: i. Organizational productivity Organizational flexibility in the form of successful adjustment to internal organizational changes and successful adaptation to externally induced changes. Georgopolous and Tannenbaum: These organizational scientists have empirically studied an organization that specialized in the delivery of retail merchandise. maintenance cost. new member productivity. the concept of effectiveness subsumes the following three criteria. Some Research Studies Seashore and Yuchtman: These researchers at Michigan University have identified ten effectiveness dimensions in their study of 75 insurance agencies. devotion to management.organizational strain or tension and of conflicts between organizational subgroups.

It rather seeks to appease only that part of environment that can threaten the organization‟s survival.14: Integration of Individual and Organisational Goals . The Strategic Constituencies Approach: It is similar to systems approach in appearance but with slightly different emphasis. 5. Management should.C. 3. Organizational Goals Gap Individual Goals Fig. The relative power of each constituency should be evaluated by considering the degree of dependence of the organization on them. strategic constituencies approach also considers the interdependencies among different sub – systems in the organization but it is not concerned with the entire environment. Like systems view. An effective organization is one that satisfies the demands of these constituencies in its environment from which it requires support for its continued existence. To see the effectiveness through this approach certain steps should follow: 1. then. D. The following diagram throws light on the behavioural theory of OE. Behavioural Approach to OE: Behavioural approach to OE emphasizes the role of individual behaviour as it affects organizational success or failure. 2. Management should identify all integral constituencies in the environment on which the survival of organization depends. 4. then arrange these constituencies in order of their power and expectations. Organizational effectiveness would. then it results in perfect integration of the individual and organizational goals. This leads to high degree of organizational effectiveness. be assessed in-terms of its ability to satisfy these constituencies that are ranked. Identify the expectations those constituencies hold for the organization. When employees agree with the objectives of the organization (employer).

which determine effectiveness. decisions of management and the policies and the structure of the organization. Intervening variables: Some examples of these intervening variables are motivation. communication. costs. causal. Organizational Goals The degree of effectiveness is high Individual Goals Organizational Goals The degree of effectiveness is low Individual Goals Fig. a famous social scientist. and output variables . it results in high degree of OE and vice – versa. decision-making and problem solving techniques.These variables comprise of production. etc. intervening variables and output variables can be seen in the following diagram. 15: The degree of Organisational Effectiveness Rensis Likert on OE: Linkert. intervening. Output or end –result variables:.These variables include the strategies of a leader. has identified three variables.When the integration of both individual and organizational goals is high in degree.16: The relationship among causal. sales turnover. namely. The following figure depicts this view. intervening and end – result variables. profit volume. Causal variables:. skills of a manager. Causal Variables Intervening variables Output variables Effectiveness Fig. The relationship among causal variables.

perceived or actual relations are also desired or rejected. Taking the wrong action d. Excessive effort in relation to the need f. Satisfaction and dissatisfaction: This is the extent to which the prescribed. Failure of administrators to act when they need to b. Affective atmosphere: This is the state of balance between the affectively positive and affectively negative choices in an organization.Achieving Organizational Effectiveness According to Alwin Brown. the organization can take necessary and corrective action over the controllable factors. there are seven reasons for the failure of organizations to achieve effectiveness: a. Tannenbaum and his associates have constructed a set of diagnostic indices of organizational effectiveness. (ii) (iii) (iv) (v) . Affective conformity: This is the extent to which the actual behaviour conforms to the desires and reflections. Delay in decision – making c. Wasted effort Having diagnosed the causes of low effectiveness. Excessive quality or effort in relation to the problem g. Lack of sufficient effort e. Vormative conformity: This is the extent to which the actual behaviour conforms to the perceived behaviour. They are as follows: (i) Understanding: This is the extent to which the relations are accurately perceived.

and feel in relation to those problems. discovered. These elements are some of the manifestations of organizations culture”. memories. Joanne Martin emphasizes the different perspectives of cultures in organizations. experiences and values will vary. For example. beliefs. a person growing up in a middle-class family will be taught the values. and expected behaviours common to that family. these values and beliefs are insufficient for helping the individual succeed in the organization. Definition: When people join an organization. stories people tell about what goes on. jargon. actual. The same is true for organizational participants. tasks. their perceptions. however. defines it as.” More recently. or developed by a given group as it learns to cope with its problems of external adaptation and internal integration. pay systems. “When cultural members interpret the meanings of these manifestations. they come into contact with dress norms. and jokes only understood by insiders and so on.that has worked well enough to be considered valuable and. She notes: “As individuals come into contact with organizations. “a pattern of basic assumptions – interpretations will differ – even of the same phenomenon. the organization‟s formal rules and procedures. Society has a social culture. therefore. who is probably most closely associated with the study of organizational culture. its formal codes of behavior. Edgar Schein.(vi) Centralization: This is the extent of concentration of choices (prescribed. or rejected) in a particular person or group. perceived. However. where people work has an organizational culture. The patterns or . they bring with them the values and beliefs they have been taught. beliefs. rituals. she adds that there is another perspective of culture as well. to be taught to new members as the correct way to perceive. ORGANISATIONAL CULTURE THE NATURE OF ORGANIZATIONAL CULTURE: People are affected by the culture in which they live. The person needs to learn how the particular enterprise does things. Quite often. think.

Philosophy: There are policies that set forth the organization‟s belief about how employees and/or customers are to be treated. including guidelines on how much work to do. Rules: There are strict guidelines related to getting along in the organization. Some of the most readily agreed upon are the following: 1. A dominant culture is a set of core values shared by a majority of the organization‟s members. 6. Everyone in the organization would have to share this perception.Organizational culture has a number of important characteristics. Organizational Climate: This is an overall “feeling” that is conveyed by the physical layout. and the need for customer service. constitute culture.” Characteristics:. 3. most employees at Southwest Airlines seems to subscribe to such values as hard work. and the ways they are enacted. product quality. they use common language. which in many organizations comedown to” Do not do too much. For example. there can be a dominant culture as well as subcultures throughout a typical organization. Typical examples are high product quality. Uniformity of culture: An organizational culture is a common perception held by the organization‟s members. do not do too little”. As a result. low absenteeism. Norms: Standards of behaviour exist. and the way members of the organization conduct themselves with customers or other outsiders. and rituals related to deference and demeanor. Dominant Values: There are major values that the organization advocates and expects the participants to share. Newcomers must learn those “ropes” in order to be accepted as full – fledged members of the group. . 2.configurations of these interpretations. However. At Hewlett – Packard. company loyalty. and high efficiency. all may not do so to the same degree. the way participants interact. 4. Observed behavioural regularities: When organizational participants interact with one another. terminology. and responsiveness to customer needs. 5. most of the employees seem to share a concern for product innovativeness.

Intensity is the degree of commitment of the organizational members to the core values. Thomas Watson Sr. a new top manager must be installed who will show the seeds for the necessary strong culture. Although recognition and other non financial rewards are important. this is not always the case.While organizational cultures can develop in a number of different ways. . The degree of intensity is a result of the reward structure. besides this leadership factor. A subculture is a set of values shared by a minority of the organization‟s members. but often overlooked. CREATING AND MAINTAINING A CULTURE Some organizational cultures may be the direct. Strong and weak cultures:. strong organizational cultures are often shaped by strong leaders. Strong managers. New employees are told about the organization‟s philosophy and method of operating. result of actions taken by the founders. and other forms of reward to those who adhere to the core values. In order for people to share the same cultural values. How organizational cultures start:. there seem to be two major factors that determine the strength of an organizational culture: Sharedness and intensity. When employees realize that they will be rewarded for doing things “the organization‟s way”. However. Many organizations begin this process with an orientation programme. Conversely. strong cultures. When organizations give promotions. recognition. Sharedness refers to the degree to which the organizational members have the same core values. commitment to core values diminishes. and if the organization is to survive. are the subcultures in an organization. or at-least indirect. their desire to do so increases. Subcultures typically are a result of problems or experiences that are shared by members of a department or unit. A single person (founder) has an idea for a new enterprise. of IBM is a good example. Sharedness is also affected by rewards. Some orgnaisations have been labeled “the best to work for” because the rewards that they give to their people are exemplary and help reinforce commitment to core values.Important. Sometimes founders create weak cultures. the process usually involves some version of the following steps: 1.Some Organizational cultures could be labeled “strong” others “weak”. when they are not rewarded or they feel there is more to be gained by not doing things the organization‟s way. However. these actions help others better understand these values. The degree of sharedness is affected by two major factors: Orientation and rewards. money still plays an important role. they must know what these values are.

New personnel are subjected to a carefully orchestrated series of different experiences whose purpose is to cause them to question the organizations norms and values and to decide whether or not they can accept them. Selection of Entry – level Personnel:. 2. Mc Donald‟s and Wal-Mart. 3. Job Mastery: . These practices can be described in-terms of several socialization steps. The experience is designed to convey the message. after the person with a fit is hired. locating space. This is typically done via extensive and carefully . At this point. many organizations with strong cultures make it a point to give newly hired personnel more work than they can handle. money and energy that will be required. and is worth the investment of time. and so on. is workable. 1. 3. The founding core group begins to act in concert to create an organization by raising funds. and a common history begins to be built.The second step occurs on the job itself. Three well-known representative examples are Motorola. The objective is also to teach the new entrant into the culture the importance of humility.Once the initial “cultural shock” is over. the next step is mastery of one‟s job.2. For example. 4. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. for example. “while you are smart in some ways. Using standardized procedures and seeking specific traits that tie to effective performance. Placement on the Job:. is worth running some risks for. others are brought into the organization. incorporating. Most of today. Maintaining Cultures through steps of Socialization: Once an organizational culture is started and begins to develop. That is. you are in Kindergarten as far as what you know this organization”. new personnel may be required to colour in a sales territory map. there are a number of practices that can help solidify the acceptance of core values and ensure that the culture maintains itself. successful corporate giants in all industries basically followed these steps. building. At Proctor of Gamble. all in this core group believe that the idea is a good one.The first step is the careful selection of entry – level candidates. obtaining patents. trained recruiters interview candidates and attempt to screen out those whose personal styles and values do not make a “fit” with the organization‟s culture.

at Proctor and Gamble. These systems are comprehensive and consistent and they focus on those aspects of the business that are most crucial to competitive success and to corporate values. Identification with these values helps employees reconcile personal sacrifices brought about by their membership in the organization.The next step of the socialization process consists of meticulous attention to measuring operational results and to rewarding individual performance. chooses role models on the basis of energy. Morgan Stanley.The next step involves careful adherence to the firm‟s most important values. The moral of the story is that ethical claims are more important than making money. at Proctor and Gamble. the organization encourages others to follow their example. there is a story about the outstanding brand manager who was fired for overstating the features of a product. the financial services firm. there are three factors that are considered most important: building volume. As personnel move along their career path. 6. 7. Promotions and merit pay are determined by success in each of these critical areas. By pointing out these people as winners. Reinforcing the Stories and Folklore: The next step involves reinforcing organizational folklore. For example. 4.The final step is the recognition and promotion of individuals who have done their jobs well and who can serve as role models to new people in the organization.reinforced field experience. Role models in strong – culture firms are regarded as the most powerful ongoing training programme of all. Adherence to important values:. The folklore helps explain why the organization does things a particular way. motivational skills. Changing Organizational Culture:. 5. and making changes that increase effectiveness or add satisfaction to the job. aggressiveness. their performance is evaluated and additional responsibilities are assigned on the basis of progress. Recognition and Promotion:. building profit. the external environment has . Proctor and Gamble looks for people who exhibit extraordinary consistency in such areas as tough mindedness. This entails keeping alive stories that validate the organization‟s culture and way of doing things. One of the most common forms of folklore is stories with morals the enterprise wants to reinforce. For example. Measuring and Rewarding Performance:. For example. They learn to accept these values and to trust the organization not to do anything that would hurt them. energy and the ability to get things done through others. For example. and team play. Japanese firms typically put new employees through a training programme for several years.Sometimes an organization determines that its culture has to be changed.

undergone drastic change and the organization must either adapt to these new conditions or it may not survive. Also. . Processes. creating a sense of oneness. Shared mindset 4. promoting a sense of membership. and increasing exchange among members are helpful. Felt need 2. changing old cultures can be quite difficult. organizations attempting to change their culture must be careful not to abandon their roots and blindly copy the so –called “successful” or “excellent” companies. Management commitment 3. Employee involvement 5. Simple guidelines such as developing a sense of history. Conditions for the cultural change process:1. This process includes strategic planning. The major systems which require change are: Strategy. roles and structures that work together to reinforce traditional cultural patterns. powerful stakeholders such as unions. Pragmatically changing an organization culture affects almost every aspect of the business. management or even customers may support the existing culture. Rewards and People. However. staff. Structure. relationships. In addition. organizational assessments. Focused training 6. Despite the significant barriers and resistance to change. Accountability These conditions set the stage for the actual change process. This attempt to change culture can take many different forms. Predictable obstacles include entrenched skills. cultures can be managed or changed overtime. and work improvement/HR practices.