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INDIVIDUAL BEHAVIOR IN ORGANIZATION

Human behavior is complex and every individual is different from another, the
challenge of an effective organization is in successfully matching the task, the
manager and the subordinate. Under ideal situation, a manager would first
analyze the task, then determine the required skills and assemble a team that
complement each other skills; thereby creating an enriching & conflict free team.
In reality, a manager has to use the existing resources for a given task, and must
have the ability to understand the differences in individual behaviors and use
them appropriately to increase the synergy. In order to understand individual
behavior and personalities, it is important to understand the basics of human
cognition.

Integrated human behavior model

An abstract model of human behavior is formulated which explains the process


that produces the individual differences. Cognition is the thought process in
humans that describes how the information we constantly acquire is transformed,
stored and used as knowledge in future decision making. It includes a wide range
of mental processes like visual imagery, language, problem solving, decision
making etc. The brain receives the stimuli from the external environment through
the sense, which is immediately registered in our sensory memory, which is large
but keeps the information for few seconds only. The observation process tries to
match the information in the sensory memory with the previous knowledge and
creates a perception of the stimuli, thereby abstracting useful information from
the sensory memory. This abstracted information then passes to the short-term
memory or the working memory, which also caches the related knowledge from
the long-term memory. The short-term memory has slightly longer latency than
the sensory memory, it is needed only till the reaction of the stimuli. The long
term memory has enormous capacity and is the primary knowledge base.

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The stimuli demands some action (even the decision to ignore the stimuli is an
action), the perceived stimuli combined with a set of related and abstracted
experiences forms the initial input to the minds analytical process. This input is
also influenced by the emotional and rational factors which in turn depend upon
individuals values and beliefs. The other two important parameters are the
desired outcome and the required response time to the stimuli. At the center of
the analytical mind is a myriad of cognitive processes that operate sequentially
or in parallel, in complex permutations in order to satisfy these primary
constraints. The consequence of this entire cognitive activity is a response to the
environmental stimuli, which is the observed as the behavior of the individual.
Persons thought process is an internal activity while the behavior can be
observed. Finally, the resulting behavior is feed backed into the memory; it
modifies the existing perceptual knowledge, seeds a new one or the stimuli and
its response is simply ignored.

Factors Influencing Individual Behavior


Abilities
Abilities of a person are the natural or learnt traits. Abilities can be classified into
mental and physical abilities and different task requires different level of the two.
Mental abilities represent the intelligence, persons deductive reasoning, and
memory, analytical and verbal comprehension. Physical abilities include muscular
strength, stamina, body coordination and motor skills. An individuals self
awareness of his own abilities determines how he feels about the task, while the
managers perception of his abilities determines the kind of task he assigns to
the individual.
Gender

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Although, research concludes that men and women are equal in their mental
abilities and job performance, society does emphasize differences. However,
absenteeism is one area where differences are found and can be attributed to
being primary caregiver to children. However, this creates a difference in self
perception of ones abilities, personal values and social behavior. Similarly, a
managers personal values might influence how he considers gender as factor in
his task assignment and evaluation.
Race
Race and culture exert significant influence when both workplace and society
have considerable diversity. Stereotyping and attributing behavior based on race
and culture are common mistakes that influence individual behavior. It is
important for both management and the staff of diverse workforce to learn about
different cultures, their values, common artifacts and communication protocols.
This would create a more comfortable corporate culture and would subdue
behaviors that might be perceived as insensitive and offensive.
Perception
Perception is the basic cognitive process that transforms sensory stimuli into
meaningful information. Most real life problems are multidimensional and the
rational approach is often entwined with the gut feeling, resulting in individual
perception. This quells the famous notion that reality is objective and thus
everyone must perceive it the same way. Both managers and subordinates must
recognize that perceptual differences exist and often are the reason for mutual
dissatisfaction.
Stereotyping: It is categorization of individuals on basis of single attribute, it
ends up creating a generalized and simplified belief that do not take into account
other significant characteristics. Age, race and sex are the three most common
basis of stereotyping; not only they are unethical but can cost missing resources.
In general, stereotyping leads to decisions that are based on inaccurate data that
can result in unfair performance evaluations, job design or promotion.
Selective Perception: It is the process of selecting only the information that
supports our pre-existing belief system, thereby eliminating the discomforting
information. Selective perception acts like a catalyst to stereotyping because
people tend to notice things that fit their existing notion and not notice things
that dont.
Both stereotyping and selective perception can be beneficial only by chance
since they are based on partial information. The specific situations in which they
can be positively exploited cannot be used as reliable methods.
Attribution
Attribution is the process of observing behavior and then determining its cause
based on individuals personality or situation. Attribution based on personality is
due to internal causes and is termed as dispositional attribution. It includes

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personality traits like shyness, arrogance, intelligence, etc. Attribution based on


external influences and situations that are outside the control of individual are
termed as situational attribution. The basic attribution framework uses three
criteria mentioned below.
Consensus: It is the extent to which other people in the same situation might
respond similarly. When behavior is attributed to consensus, the individual is not
rewarded or penalized due his personality.
Distinctiveness: It is the extent to which the individuals behavior can be
attributed to situations or to his personality. If the person behaves the same way
in seemingly different situations, then his behavior will be attributed to his
personality.
Consistency: It is the measure of the frequency of the observed behavior, how
often does the behavior occurs? High consistency is linked to dispositional
attribution while low consistency is linked to situational attribution.
Attitude
An attitude is the abstract learnt response of an individuals entire cognitive
process over a period of time. It is experienced as a quick response to a familiar
situation without any deep reasoning; it forms the basis of biases and attribution
errors. As an example, an individual who has worked in various organizations
might develop an attitude of indifference towards organizational citizenship.
Personality
Personality is the relatively stable set of psychological attributes that
distinguishes one individual
from another. The `integrated individual behavior model proposed above, is
a framework to understand the process by which the personality develops over a
period of time.

LEADERSHIP
Leadership has been described as the process of social influence in which one
person can enlist the aid and support of others in the accomplishment of a
common task".

Leadership is "organizing a group of people to achieve a common goal". The leader may
or may not have any formal authority. Leadership is a process of getting things done
through people. Leadership is not a science. So being a leader is an adventure
because you can never be sure whether you will reach your goal. Leadership
means responsibility. It's adventure and often fun, but it always means
responsibility. The leader is the guy the others look forward to get the job done.

The Job of a Leader

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A leader works with two things: a job and a group. You can always tell when a
leader succeeds, because:
1. The job gets done.
2. The group holds together.

Leadership is not magic that comes out of a leader's head. It's skill. The leader
learns how to get the job done and still keep the group together.

Does this mean that the leader does the same things in every situation? No.
Here's why.

Leadership differs with the leader, the group, and the situation.

Leaders -- like other people are all different. No leader can take over another
leader's job and do it the same way.

Groups are different, too. A great football coach might have difficulty leading an
orchestra. A good sergeant might be a poor Scoutmaster. So when a leader
changes groups, he changes the way he leads.

Situations differ, too. The same leader with the same group must change with
conditions. A fellow leading a group discussion needs to change his style of
leadership when a fire breaks out. As a Scout leader, you probably can't lead the
group in the rain the same as you do in the sunshine.

An effective leader, then, must be alert at all times to the reaction of the
members of the group; the conditions in which he may find himself; and be aware
of his own abilities and reactions.

NATURE OF LEADERSHIP

Are leaders born or are they made? There is evidence to prove that there is a
Personality Profile that exists in successful leaders, whether born or made. In fact
there are 5 specific Personality Traits that define the nature of a Leader. A
dynamic Leader is someone who is willing to lead and has the social ability, self
confidence, assertiveness and boldness to take on team responsibilities and Lead
others.

These profiles can be tested and proven. A successful leader will test extremely
high in areas of Social Ability, Self Confidence, Assertiveness, and Boldness.
Leadership itself is another Personality Trait that comes into play.

1) Socialability - Good natured extroverted, outgoing, friendly, gregarious,


neighborly, congenial. Warmhearted individuals who enjoy interacting and
participating with others. They greet strangers openly, are quick to form
friendships, and enjoy careers dealing with people rather than things. They are
rarely content in solitary work. People that rate a 8 or higher in Social ability out

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of a scale of 10 are usually happier people in general. This is a Personality trait


that shows how well someone will interact with everyone in their sphere of
influence (Spouse, Boss, Associate, Friend, Employee).

2) Self Confidence - Determines Success Self-assured, certain, secure, brave,


fulfilled, poised, self-reliant. Believe they have the knowledge and ability to be
successful at whatever they attempt. Cope successfully with challenges and are
not easily discouraged. Handle unexpected situations well, make decisions with
assurance, and are quick to express ideas and opinions.

3) Assertiveness - Aggressive, persuasive, influential, headstrong, opinionated,


distinctively argumentative and hostile. Believe that being assertive and taking
the offensive is essential to attaining success. They make things happen, rather
than waiting for them to happen, and are willing to be forceful in order to get a
job done. May be authoritarian.

4) Boldness - Adventurous, daring, carefree, brave, courageous, audacious,


fearless. Uninhibited individuals who are willing to try new and different
experiences. They can function normally even in unfamiliar environments, and
are quick to accept challenges and willing to take risks to accomplish their
objectives. May be pushy and ignore warning signs.

5) Another Personality Trait that can be measured is actually called Leadership.


It is defined as Dominant, influential, controlling, dynamic, commanding, forceful,
directing, authoritative. Very strong desire to control, influence and direct others.
Assume the role of leader naturally and enjoy the responsibility and challenge of
being in charge. Have an active leadership style, and are quick to take control of
situations.

However the Leadership Trait is measuring a persons willingness to lead. A


person may be a great leader but not willing to lead their sons football team, or
the parent teacher association, as they may not have the time to do so. So they
may be reluctant to take on those responsibilities. So their Leadership attitude
measurement may be a lower score.

LEADERS vs MANAGERS

Managers and Leaders Defined

According to the Cambridge Dictionary Online, to manage means "to be


responsible for controlling or organizing someone or something especially a

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business". At first glance, this definition might be mistaken for that of a leader. A
leader however is defined as "a person in control of a group, country or
situation". Both of these definitions describe each role as being controlling;
however, there are distinct differences.

Managers Are Doers, Leaders are Thinkers

This is not to say that leaders are not doers. They work very hard to reach their
position of power, but leaders tend to be more charismatic big thinkers. Leaders
normally hire managers to carry out the tasks of their vision. It's a manager's
responsibility to make sure that all of the details of a specific vision, idea or
concept are handled whether they do the work themselves or delegate some of it
to their subordinates.

Speaking of subordinates, another key element that separates leaders from


managers is that managers not only have subordinates, they are subordinates.
Every manager has one or more people who have authority over them. Managers
may be in charge of a department, project or division of a company but they do
not control the company as a whole the way leaders do.

Managers Give Direction, Leaders Create Direction

Part of a manager's job is to delegate tasks and responsibilities to the employees


they manage. A leader's responsibility, however, is to create that direction be it
policies, company expansion or new markets.

Both Managers and Leaders Make Decisions

Managers are usually limited to the type or amount of decisions they can make
before approval from a superior is required. Even then, those decisions usually
only affect the immediate people or department the manager is responsible for.
Leaders on the other hand, have the ability to make key decisions large and small
that may affect the entire organization without approval from anyone.

Short Term vs. Long Term

Often times, managers are in their positions for a short amount of time. This is
because they are working their way up the corporate ladder and may be
promoted. Another reason is because they see greener pastures somewhere else
and transfer their skills and knowledge to another company.

Leaders are usually in it for the long haul. Whether they worked their way up
from the bottom or started the company from the ground up, leaders generally
have a vested amount of time and effort in a company. Most leaders do not want
to throw away all of the blood, sweat and tears they put into an organization to
start over somewhere else. Many leaders, however, enter other ventures

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simultaneously simply for the thrill of running a company or to expand on their


success. They may start brand new companies or smaller affiliate companies to
the one they already have. Famous leaders like Donald Trump, Oprah Winfrey and
Steve Jobs all have more than one company.

Can One Function Without the Other?

There are some leaders who try to lead and manage at the same time but usually
not successfully. By trying to do everything, something is going to suffer. Do you
need management skills to be a leader? To a certain degree, I suppose. To be a
good leader you need to be able to manage ideas and be organized enough to
put the people in place that will help you be successful.

Do you need leadership skills to be a manager? Sadly, the answer is no. There
are many managers in the corporate world who have no leadership ability. Many
pass on their work to their employees and cower when problems arise. Many
employees go over their heads to get answers because they make themselves
unavailable or impossible to communicate with. These managers will probably
not go on to be company leaders. There are some managers though, that their
employees aspire to be and their bosses would trust their lives with; leaders in
their own right who rise to the challenge and go above and beyond the call of
duty. These managers are incredibly valuable to any company and have a much
easier time getting promotions and recognition for their efforts.

It takes a certain type of person to be a great leader or a manager. When each is


outstanding in their respective role and working as a unified front, the outcome is
sure to be a company that is thriving, strong and unstoppable.

FUNCTIONS OF LEADERSHIP

The Leaders are the decision makers so they are free to take decision. But first of
all, they must consult with the team and then impose the decision. But there are
some points which are no liable to be consulted with staff. They are the principles
set by the organization and governing the code of conduct. The most important
quality of the Leadership is to assess the performance of the Organization and
Reputation among the public. If the organization is an educational Institute, then
it must sustain its standard and provide quality education along with talented
scholars. The leadership functions also contains alignment of organizational
practices with values and Vision. This mean that the Organization must follow
values and the Vision .The Leader can alter Organizational practices and
standards so as to make them suitable for the people to adapt and avail. He
takes initiative for the improvement of the intuition and its products. He also
facilitate s the quality interactions among the staff as well as the general public
or consumers.

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Adair's model of Leadership Functions

Adair's model of Leadership Functions explained

A business tool that describes the three core roles of leadership as overlapping
and interdependent spheres. The models 3 spheres are: achieving the task,
building and maintaining the team, and developing the individual. These areas
are mutually dependant and equal. In addition to these three roles, Adair
identified eight vital leadership functions or behavior types. These functions are:
defining the task, planning, briefing, controlling, evaluating, motivating,
organizing and providing examples.

Core Roles / Functions

Achieving the task is dependent not only on a clear plan, but on individuals being
motivated and the group pulling together. The group can only effectively operate
if the task is achievable and well defined and the individuals are motivated. The
individuals development and motivation require the task to be clear and
achievable and the group to be supportive and effective. In this sense, each role
needs to be functioning effectively in order that the other two areas be satisfied.
To achieve this equilibrium, the leader must continually perform the eight
leadership functions:

1. Defining the task: This sets a clear objective allowing the group and the
individual to have a collective goal.
2. Planning: Both leader and team need to be aware of timescales and
responsibilities to achieve cohesion, efficiency and clarity of procedure.

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3. Briefing: Giving and receiving information and summarizing ideas. This


benefits individuals by a sense of inclusion and teams by sharing
information as a sign of democracy.

4. Controlling: The leader needs to exercise self control, but also needs to
implement effective control systems on the group and individuals. This
ensures standards are met to achieve the task, and builds confidence in the
leadership capabilities from the individuals and teams.

5. Evaluating: Continual evaluation of individual and group performance is


essential for developing and maintaining standards and skills.

6. Motivating: Leaders can benefit teams and individuals through reconciling


disagreements and providing encouragement through setting realistic
targets and communication feedback.

7. Organizing: Efficient allocation of people, time and resources benefits the


task in terms of making it more achievable and individuals and teams by
providing a clear action plan.

8. Providing examples: Leading by example builds credibility with teams


and individuals and helps build motivation and efficiency in individuals.

The model demonstrates the unity of leadership and shows how acting on any
one of the eight functions or behaviors by the leader has a knock-on effect across
the three core areas. The tool provides an integrated approach to leadership and
is relevant for all team members and leaders.

STYLES OF LEADERSHIP

There are many ways to lead and every leader has his or her own style. Some of
the more common styles include autocratic, bureaucratic, democratic, and
laissez-faire.

In the past several decades, management experts have undergone a revolution


in how they define leadership and what their attitudes are toward it. They have
gone from a very classical autocratic approach to a very creative, participative
approach. Somewhere along the line, it was determined that not everything old
was bad and not everything new was good. Rather, different styles were needed
for different situations and each leader needed to know when to exhibit a
particular approach.

Four of the most basic leadership styles are:

--Autocratic

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--Bureaucratic
--Laissez-faire
--Democratic

Autocratic Leadership Style

This is often considered the classical approach. It is one in which the manager
retains as much power and decision-making authority as possible. The manager
does not consult employees, nor are they allowed to give any input. Employees
are expected to obey orders without receiving any explanations. The motivation
environment is produced by creating a structured set of rewards and
punishments.

This leadership style has been greatly criticized during the past 30 years. Some
studies say that organizations with many autocratic leaders have higher turnover
and absenteeism than other organizations. Certainly Gen X employees have
proven to be highly resistant to this management style. These studies say that
autocratic leaders:

--Rely on threats and punishment to influence employees


--Do not trust employees
--Do not allow for employee input

Yet, autocratic leadership is not all bad. Sometimes it is the most effective style
to use. These situations can include:
--New, untrained employees who do not know which tasks to perform or which
procedures to follow
--Effective supervision can be provided only through detailed orders and
instructions
--Employees do not respond to any other leadership style
--There are high-volume production needs on a daily basis
--There is limited time in which to make a decision
--A manager's power is challenged by an employee
--The area was poorly managed
--Work needs to be coordinated with another department or organization

The autocratic leadership style should not be used when:


--Employees become tense, fearful, or resentful
--Employees expect to have their opinions heard
--Employees begin depending on their manager to make all their decisions
--There is low employee morale, high turnover and absenteeism and work
stoppage

Bureaucratic Leadership Style

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Bureaucratic leadership is where the manager manages "by the book.


Everything must be done according to procedure or policy. If it isn't covered by
the book, the manager refers to the next level above him or her. This manager is
really more of a police officer than a leader. He or she enforces the rules.

This style can be effective when:


--Employees are performing routine tasks over and over.
--Employees need to understand certain standards or procedures.
--Employees are working with dangerous or delicate equipment that requires a
definite set of procedures to operate.
--Safety or security training is being conducted.
--Employees are performing tasks that require handling cash.

This style is ineffective when:


--Work habits forms that are hard to break, especially if they are no longer useful.
--Employees lose their interest in their jobs and in their fellow workers.
--Employees do only what is expected of them and no more.

Democratic Leadership Style

The democratic leadership style is also called the participative style as it


encourages employees to be a part of the decision making. The democratic
manager keeps his or her employees informed about everything that affects their
work and shares decision making and problem solving responsibilities. This style
requires the leader to be a coach who has the final say, but gathers information
from staff members before making a decision.

Democratic leadership can produce high quality and high quantity work for long
periods of time. Many employees like the trust they receive and respond with
cooperation, team spirit, and high morale. Typically the democratic leader:

--Develops plans to help employees evaluate their own performance


--Allows employees to establish goals
--Encourages employees to grow on the job and be promoted
--Recognizes and encourages achievement.

Like the other styles, the democratic style is not always appropriate. It is most
successful when used with highly skilled or experienced employees or when
implementing operational changes or resolving individual or group problems.

The democratic leadership style is most effective when:


--The leader wants to keep employees informed about matters that affect them.
--The leader wants employees to share in decision-making and problem-solving
duties.
--The leader wants to provide opportunities for employees to develop a high
sense of personal growth and job satisfaction.

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--There is a large or complex problem that requires lots of input to solve.


--Changes must be made or problems solved that affect employees or groups of
employees.
--You want to encourage team building and participation.

Democratic leadership should not be used when:


--There is not enough time to get everyone's input.
--It's easier and more cost-effective for the manager to make the decision.
--The business can't afford mistakes.
--The manager feels threatened by this type of leadership.
--Employee safety is a critical concern.
Laissez-Faire Leadership Style

The laissez-faire leadership style is also known as the "hands-off style. It is one
in which the manager provides little or no direction and gives employees as much
freedom as possible. All authority or power is given to the employees and they
must determine goals, make decisions, and resolve problems on their own.

This is an effective style to use when:


--Employees are highly skilled, experienced, and educated.
--Employees have pride in their work and the drive to do it successfully on their
own.
--Outside experts, such as staff specialists or consultants are being used
--Employees are trustworthy and experienced.
This style should not be used when:
--It makes employees feel insecure at the unavailability of a manager.
--The manager cannot provide regular feedback to let employees know how well
they are doing.
--Managers are unable to thank employees for their good work.
--The manager doesn't understand his or her responsibilities and is hoping the
employees can cover for him or her.

Varying Leadership Style

While the proper leadership style depends on the situation, there are three other
factors that also influence which leadership style to use.

1. The manager's personal background. What personality, knowledge, values,


ethics, and experiences does the manager have. What does he or she think will
work?
2. The employees being supervised. Employees are individuals with different
personalities and backgrounds. The leadership style managers use will vary
depending upon the individual employee and what he or she will respond best
to.

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3. The company. The traditions, values, philosophy, and concerns of the company
will influence how a manager acts.

APPROACHES TO LEADERSHIP / LEADERSHIP THEORIES

Interest in leadership increased during the early part of the twentieth century.
Early leadership theories focused on what qualities distinguished between
leaders and followers, while subsequent theories looked at other variables such
as situational factors and skill levels. While many different leadership theories
have emerged, most can be classified as one of eight major types:

1. "Great Man" Theories:


Great man theories assume that the capacity for leadership is inherent that
great leaders are born, not made. These theories often portray great leaders as
heroic, mythic and destined to rise to leadership when needed. The term "Great
Man" was used because, at the time, leadership was thought of primarily as a
male quality, especially in terms of military leadership. Learn more about the
great man theory of leadership.

The great man theory of leadership became popular during the 19th-century. The
mythology behind some of the world's most famous leaders such as Abraham
Lincoln, Julius Caesar, Mahatma Gandhi, and Alexander the Great helped
contribute to the notion that great leaders are born and not made. In many
examples, it seems as if the right man for the job seems to emerge almost
magically to take control of a situation and lead a group of people into safety or
success.

Historian Thomas Carlyle also had a major influence on this theory of leadership,
at one point stating that, "The history of the world is but the biography of great
men." According to Carlyle, effective leaders are those gifted with divine
inspiration and the right characteristics.

Some of the earliest research on leadership looked at people who were already
successful leaders. These individuals often included aristocratic rulers who
achieved their position through birthright. Because people of a lesser social
status had fewer opportunities to practice and achieve leadership roles, it
contributed to the idea that leadership is an inherent ability.

Even today, people often describe prominent leaders as having the right qualities
or personality for the position, implying that inherent characteristics are what
make these people effective leaders.

2. Trait Theories:
Similar in some ways to "Great Man" theories, trait theories assume that people
inherit certain qualities and traits that make them better suited to leadership.

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Trait theories often identify particular personality or behavioral characteristics


shared by leaders. If particular traits are key features of leadership, then how do
we explain people who possess those qualities but are not leaders? This question
is one of the difficulties in using trait theories to explain leadership.

The trait approach to personality is one of the major theoretical areas in the
study of personality. The trait theory suggests that individual personalities are
composed broad dispositions. Consider how you would describe the personality of
a close friend. Chances are that you would list a number of traits, such as
outgoing, kind and even-tempered. A trait can be thought of as a relatively stable
characteristic that causes individuals to behave in certain ways.

Unlike many other theories of personality, such as psychoanalytic or humanistic


theories, the trait approach to personality is focused on differences between
individuals. The combination and interaction of various traits forms a personality
that is unique to each individual. Trait theory is focused on identifying and
measuring these individual personality characteristics.

A new trait theory often referred to as the "Big Five" theory emerged. This five-
factor model of personality represents five core traits that interact to form human
personality. While researchers often disagree about the exact labels for each
dimension, the following are described most commonly:

1. Extraversion
2. Agreeableness

3. Conscientiousness

4. Neuroticism

5. Openness

3. Contingency Theories:
Contingency theories of leadership focus on particular variables related to the
environment that might determine which particular style of leadership is best
suited for the situation. According to this theory, no leadership style is best in all
situations. Success depends upon a number of variables, including the leadership
style, qualities of the followers and aspects of the situation.

4. Situational Theories:
Situational theories propose that leaders choose the best course of action based
upon situational variables. Different styles of leadership may be more appropriate
for certain types of decision-making.

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5. Behavioral Theories:
Behavioral theories of leadership are based upon the belief that great leaders are
made, not born. Rooted in behaviorism, this leadership theory focuses on the
actions of leaders not on mental qualities or internal states. According to this
theory, people can learn to become leaders through teaching and observation.

(Ohio State University and Michigan University studies are discussed later)

6. Participative Theories:
Participative leadership theories suggest that the ideal leadership style is one
that takes the input of others into account. These leaders encourage participation
and contributions from group members and help group members feel more
relevant and committed to the decision-making process. In participative theories,
however, the leader retains the right to allow the input of others.

7. Management Theories:
Management theories, also known as transactional theories, focus on the role of
supervision, organization and group performance. These theories base leadership
on a system of rewards and punishments. Managerial theories are often used in
business; when employees are successful, they are rewarded; when they fail,
they are reprimanded or punished. Learn more about theories of transactional
leadership.

Transactional leadership, also known as managerial leadership, focuses on the


role of supervision, organization and group performance. This theory of
leadership was first described in by sociologist Max Weber, and further explored
by Bernard M. Bass in the early 1980s.

Basic Assumptions of Transactional Leadership


People perform their best when the chain of command is definite and clear.
Workers are motivated by rewards and punishments.
Obeying the instructions and commands of the leader is the primary goal of
the followers.
Subordinates need to be carefully monitored to ensure that expectations
are met.

This theory bases leadership on a system of rewards and punishments.


Transactional leadership is often used in business; when employees are
successful, they are rewarded; when they fail, they are reprimanded or punished.

How Transactional Leadership Works

In transactional leadership, rewards and punishments are contingent upon the


performance of the followers. The leader views the relationship between

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managers and subordinates as an exchange - you give me something for


something in return. When subordinates perform well, they receive some type of
reward. When they perform poorly, they will be punished in some way.

Rules, procedures and standards are essential in transactional leadership.


Followers are not encouraged to be creative or to find new solutions to problems.
Research has found that transactional leadership tends to be most effective in
situations where problems are simple and clearly-defined.

While transactional leadership can be effective in some situations, it is generally


considered an insufficient and may prevent both leaders an followers from
achieving their full potential.

8. Relationship Theories:
Relationship theories, also known as transformational theories, focus upon the
connections formed between leaders and followers. Transformational leaders
motivate and inspire people by helping group members see the importance and
higher good of the task. These leaders are focused on the performance of group
members, but also want each person to fulfill his or her potential. Leaders with
this style often have high ethical and moral standards.

Transformational leadership is a type of leadership style that leads to positive


changes in those who follow. Transformational leaders are generally energetic,
enthusiastic and passionate. Not only are these leaders concerned and involved
in the process; they are also focused on helping every member of the group
succeed as well.

The Components of Transformational Leadership

Bass also suggested that there were four different components of


transformational leadership.

1. Intellectual Stimulation Transformational leaders not only challenge the


status quo; they also encourage creativity among followers. The leader
encourages followers to explore new ways of doing things and new
opportunities to learn.

2. Individualized Consideration Transformational leadership also involves


offering support and encouragement to individual followers. In order to
foster supportive relationships, transformational leaders keep lines of
communication open so that followers feel free to share ideas and so that
leaders can offer direct recognition of each followers unique contributions.

3. Inspirational Motivation Transformational leaders have a clear vision that


they are able to articulate to followers. These leaders are also able to help
followers experience the same passion and motivation to fulfill these goals.

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4. Idealized Influence The transformational leaders serves as a role model


for followers. Because followers trust and respect the leader, they emulate
the leader and internalize his or her ideals.

Behavioral Theories of Leadership


Behavioral theories of leadership are classified as such because they focus on the
study of specific behaviors of a leader. For behavioral theorists, a leader behavior
is the best predictor of his leadership influences and as a result, is the best
determinant of his or her leadership success.

There are two important Behavioral studies:

Ohio State University (1940s)

As leadership studies that were aimed at identifying the appropriate traits didn't
yield any conclusive results, a group of people from Ohio State University
developed a list of 150 statements from their generated responses that included
1,800 hundred statements. The list was designed to measure nine different
behavioral leadership dimensions. The resulting questionnaire is now well-known
as the LBDQ or the Leaders Behavior Description Questionnaire.

As part of the study, the LBDQ was administered to various groups of individuals
ranging from college students and their administrators, private companies
including military personnel. One of the primary purposes of the study was to
identify common leadership behaviors. After compiling and analyzing the results,
the study led to the conclusion that there were two groups of behaviors that were
strongly correlated. These were defined as Consideration (People Oriented
behavioral Leaders) and Initiating Structure (Task Oriented Leaders).

Task oriented leaders

The task concerned leaders are focusing their behaviors on the


organizational structure, the operating procedures (S.O.P.) and they
like to keep control. Task-oriented leaders are still concern with their
staff motivation; however it's not their main concern. They will favor
behaviors that are in line with:

Initiating
Organizing

Clarifying

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Information Gathering

People oriented leaders

The people oriented leaders are focusing their behaviors on ensuring


that the inner needs of the people are satisfied. Thus they will seek
to motivate their staff through emphasizing the human relation.
People oriented leaders still focus on the task and the results; they
just achieve them through different means. Leaders with a people
focus will have behaviors that are in line with:

Encouraging
Observing

Listening

Coaching and Mentoring

University of Michigan (1950s)

Lead by the famous organizational psychologist, Dr. Rensis Likert, the leadership
studies at the University of Michigan identified three characteristics of effective
leadership; two of which were previously observed in studies that had been
conducted at Ohio State University. The study showed that task- and relationship-
oriented behaviors weren't of major significance within the world of
organizational psychology. However it was the third observation that introduced a
new concept, one of participative leadership!

A Participative Leader, rather than taking autocratic decisions, seeks to involve


other people in the process, possibly including subordinates, peers, superiors and
other stakeholders. Often, however, as it is within the managers' whim to give or
deny control to his or her subordinates, most participative activity is within the
immediate team. The question of how much influence others are given thus may
vary on the manager's preferences and beliefs, and a whole spectrum of
participation is possible, as in the table below.

Highly
< Not participative
participative >
Leader Team
proposes proposes Joint Full
Autocratic
decision, decision, decision delegation
decision by
listens to leader has with team as of decision
leader
feedback, final equals to team
then decides decision

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CONTINGENCY THEORY OF LEADERSHIP : FIEDLERS CONTINGENCY


MODEL

Fred E. Fiedlers contingency theory of leadership effectiveness was based on


studies of a wide range of group effectiveness, and concentrated on the
relationship between leadership and organizational performance. This is one of
the earliest situation-contingent leadership theories given by Fiedler. According to
him, if an organization attempts to achieve group effectiveness through
leadership, then there is a need to assess the leader according to an underlying
trait, assess the situation faced by the leader, and construct a proper match
between the two.

Leaders trait
In order to assess the attitudes of the leader, Fiedler developed the least
preferred co-worker (LPC) scale in which the leaders are asked about the person
with whom they least like to work. The scale is a questionnaire consisting of 16
items used to reflect a leaders underlying disposition toward others. The items in
the LPC scale are pleasant / unpleasant, friendly / unfriendly, rejecting /
accepting, unenthusiastic / enthusiastic, tense / relaxed, cold / warm,

helpful / frustrating, cooperative / uncooperative, supportive / hostile,


quarrelsome / harmonious, efficient / inefficient, gloomy / cheerful, distant / close,
boring / interesting, self-assured / hesitant, open / guarded. Each item in the scale
is given a single ranking of between one and eight points, with eight points
indicating the most favorable rating.

Friendly Unfriendly
8 7 6 5 4 3 2 1

Fiedler states that leaders with high LPC scores are relationship-oriented and the
ones with low scores are task-oriented. The high LPC score leaders derived most
satisfaction from interpersonal relationships and therefore evaluate their least
preferred co-workers in fairly favorable terms. These leaders think about the task
accomplishment only after the relationship need is well satisfied. On the other
hand, the low LPC score leaders derived satisfaction from performance of the task
and attainment of objectives and only after tasks have been accomplished, these
leaders work on establishing good social and interpersonal relationships.

Situational factor

According to Fiedler, a leaders behavior is dependent upon the favorability of the


leadership situation. Three factors work together to determine how favorable a
situation is to a leader. These are:

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Leader-member relations - The degree to which the leaders is trusted


and liked by the group members, and the willingness of the group members
to follow the leaders guidance
Task structure - The degree to which the groups task has been described
as structured or unstructured, has been clearly defined and the extent to
which it can be carried out by detailed instructions

Position power - The power of the leader by virtue of the organizational


position and the degree to which the leader can exercise authority on group
members in order to comply with and accept his direction and leadership

With the help of these three variables, eight combinations of group-task


situations were constructed by Fiedler. These combinations were used to identify
the style of the leader.

Figure : Correlation between leaders LPC scores and group


effectiveness

Leadership Effectiveness

The leaders effectiveness is determined by the interaction of the leaders style of


behavior and the favorableness of the situational characteristics. The most

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favorable situation is when leader-member relations are good, the task is highly
structured, and the leader has a strong position power.

Research on the contingency model has shown that task-oriented leaders are
more effective in highly favorable (1, 2, 3) and highly unfavorable situation (7, 8),
whereas relationship-oriented leaders are more effective in situations of
intermediate favorableness (4, 5, 6).

Fiedler also suggested that leaders may act differently in different situations.
Relationship-oriented leaders generally display task-oriented behaviors under
highly favorable situations and display relationship-oriented behaviors under
unfavorable intermediate favorable situations. Similarly, task-oriented leaders
frequently display task-oriented in unfavorable or intermediate favorable
situations but display relationship-oriented behaviors in favorable situations.

PATH-GOAL THEORY OF LEADERSHIP


The theory was developed by Robert House and has its roots in the expectancy
theory of motivation. The theory is based on the premise that an employees
perception of expectancies between his effort and performance is greatly affected
by a leaders behavior. The leaders help group members in attaining rewards by
clarifying the paths to goals and removing obstacles to performance. They do so
by providing the information, support, and other resources which are required by
employees to complete the task.

Houses theory advocates servant leadership. As per servant leadership theory,


leadership is not viewed as a position of power. Rather, leaders act as coaches
and facilitators to their subordinates. According to Houses path-goal theory, a
leaders effectiveness depends on several employee and environmental
contingent factors and certain leadership styles. All these are explained in the
figure below:

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Leadership Styles

The four leadership styles are:

Directive: Here the leader provides guidelines, lets subordinates know what is
expected of them, sets performance standards for them, and controls behavior
when performance standards are not met. He makes judicious use of rewards and
disciplinary action. The style is the same as task-oriented one.
Supportive: The leader is friendly towards subordinates and displays personal
concern for their needs, welfare, and well-being. This style is the same as people-
oriented leadership.

Participative: The leader believes in group decision-making and shares


information with subordinates. He consults his subordinates on important
decisions related to work, task goals, and paths to resolve goals.

Achievement-oriented: The leader sets challenging goals and encourages


employees to reach their peak performance. The leader believes that employees
are responsible enough to accomplish challenging goals. This is the same as goal-
setting theory.

According to the theory, these leadership styles are not mutually excusive and
leaders are capable of selecting more than one kind of a style suited for a
particular situation.

Contingencies

The theory states that each of these styles will be effective in some situations but
not in others. It further states that the relationship between a leaders style and
effectiveness is dependent on the following variables:

Employee characteristics: These include factors such as employees needs, locus


of control, experience, perceived ability, satisfaction, willingness to leave the
organization, and anxiety. For example, if followers are high inability, a directive
style of leadership may be unnecessary; instead a supportive approach may be
preferable.
Characteristics of work environment: These include factors such as task structure
and team dynamics that are outside the control of the employee. For example, for
employees performing simple and routine tasks, a supportive style is much
effective than a directive one. Similarly, the participative style works much better
for non-routine tasks than routine ones. When team cohesiveness is low,
a supportive leadership style must be used whereas in a situation where
performance-oriented team norms exist, a directive style or possibly an
achievement-oriented style works better. Leaders should apply directive style to
counteract team norms that oppose the teams formal objectives.

Conclusion

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The theory has been subjected to empirical testing in several studies and has
received considerable research support. This theory consistently reminds the
leaders that their main role as a leader is to assist the subordinates in defining
their goals and then to assist them in accomplishing those goals in the most
efficient and effective manner. This theory gives a guide map to the leaders
about how to increase subordinates satisfaction and performance level.

MOTIVATION

Motivation is a term that refers to a process that elicits, controls, and sustains
certain behaviors. For instance: An individual has not eaten, he or she feels
hungry, as a response he or she eats and diminishes feelings of hunger.
According to various theories, motivation may be rooted in a basic need to
minimize physical pain and maximize pleasure, or it may include specific
needs such as eating and resting, or a desired object, goal, state of being,
ideal, or it may be attributed to less-apparent reasons such as altruism,
selfishness, morality, or avoiding mortality. Conceptually, motivation
should not be confused with either volition or optimism. Motivation is
related to, but distinct from, emotion.

Nearly all the conscious behavior of human being is motivated. The internal
needs and drives lead to tensions, which in turn result into actions. The need for
food results into hunger and hence a person is motivated to eat.

A manager requires creating and maintaining an environment in which individuals


work together in groups towards the accomplishment of common objectives. A
manager cannot do a job without knowing what motivates people. The building of
motivating factors into organizational roles, the staffing of these roles and the
entire process of leading people must be built on knowledge of motivation. It is
necessary to remember that level of motivation varies both between individuals
and within individuals at different times. Today in the increasingly competitive
environment maintaining a highly motivated workforce is the most challenging
task. The art of motivation starts by learning how to influence the behavior of the
individual. This understanding helps to achieve both, the individual as well as
organizational objectives.

Motivation is a powerful tool in the hands of leaders. It can persuade convince


and propel people to act.

What is motivation?

It is a general tendency to believe that motivation is a personal trait. Some


people have it and the others dont. In practice, some are labeled to be lazy
because they do not display an outward sign of motivation. However, individuals
differ in their basic motivational drives. It also depends upon their areas of

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interest. The concept of motivation is situational and its level varies between
different individuals and at different times. If you understand what motivates
people, you have at your command the most powerful tool for dealing with them.

Defining motivation

Motivation is to inspire people to work, individually or in groups in the ways such


as to produce best results. It is the will to act. It is the willingness to exert high
levels of effort towards organizational goals, conditioned by the efforts and ability
to satisfy some individual need.

Motivation is getting somebody to do something because they want to do it. It


was once assumed that motivation had to be injected from outside, but it is now
understood that everyone is motivated by several differing forces.

Motivation is a general term applied to the entire class of drives, desires, needs,
wishes and similar forces. To say that managers motivate their subordinates is to
say that they do those things which they hope will satisfy these drives and
desires and induce the subordinates to act in a desired manner.

To motivate others is the most important of management tasks. It comprises the


abilities to communicate, to set an example, to challenge, to encourage, to
obtain feedback, to involve, to delegate, to develop and train, to inform, to brief
and to provide a just reward.

In the initiation a person starts feeling lack nesses. There is an arousal of need so
urgent, that the bearer has to venture in search to satisfy it. This leads to
creation of tension, which urges the person to forget everything else and cater to

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the aroused need first. This tension also creates drives and attitudes regarding
the type of satisfaction that is desired. This leads a person to venture into the
search of information. This ultimately leads to evaluation of alternatives where
the best alternative is chosen. After choosing the alternative, an action is taken.
Because of the performance of the activity satisfaction is achieved which than
relieves the tension in the individual.

Motivation Theories: Individual Needs

Motivation is a complex phenomenon. Several theories attempt to explain how


motivation works. In management circles, probably the most popular
explanations of motivation are based on the needs of the individual.

The basic needs model, referred to as content theory of motivation, highlights


the specific factors that motivate an individual. Although these factors are found
within an individual, things outside the individual can affect him or her as well.

In short, all people have needs that they want satisfied. Some are primary needs,
such as those for food, sleep, and waterneeds that deal with the physical
aspects of behavior and are considered unlearned. These needs are biological in
nature and relatively stable. Their influences on behavior are usually obvious and
hence easy to identify.

Secondary needs, on the other hand, are psychological, which means that they
are learned primarily through experience. These needs vary significantly by
culture and by individual. Secondary needs consist of internal states, such as the
desire for power, achievement, and love. Identifying and interpreting these needs
is more difficult because they are demonstrated in a variety of ways. Secondary
needs are responsible for most of the behavior that a supervisor is concerned
with and for the rewards a person seeks in an organization.

Several theorists, including Abraham Maslow, Frederick Herzberg, David


McClelland, and Clayton Alderfer, have provided theories to help explain needs as
a source of motivation.

Abraham Maslow's hierarchy of needs theory

Abraham Maslow defined need as a physiological or psychological deficiency that


a person feels the compulsion to satisfy. This need can create tensions that can
influence a person's work attitudes and behaviors. Maslow formed a theory based
on his definition of need that proposes that humans are motivated by multiple
needs and that these needs exist in a hierarchical order. His premise is that only
an unsatisfied need can influence behavior; a satisfied need is not a motivator.

Maslow's theory is based on the following two principles:

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Deficit principle: A satisfied need no longer motivates behavior because


people act to satisfy deprived needs.
Progression principle: The five needs he identified exist in a hierarchy,
which means that a need at any level only comes into play after a lower-
level need has been satisfied.

In his theory, Maslow identified five levels of human needs. Table 1 illustrates
these five levels and provides suggestions for satisfying each need.

TABL Maslow's Hierarchy of


E: Human Needs

Higher Level Needs To Satisfy, Offer:

Self-actualization needs Creative and challenging


work

Participation in decision
making

Job flexibility and


autonomy

Esteem needs Responsibility of an


important job

Promotion to higher status


job

Praise and recognition from


boss

Lower Level Needs To Satisfy, Offer:

Social needs Friendly coworkers

Interaction with customers

Pleasant supervisor

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Higher Level Needs To Satisfy, Offer:

Safety needs Safe working conditions

Job security

Base compensation and


benefits

Physiological needs Rest and refreshment


breaks

Physical comfort on the job

Reasonable work hours

Although research has not verified the strict deficit and progression principles of
Maslow's theory, his ideas can help managers understand and satisfy the needs
of employees.

Herzberg's two-factor theory

Frederick Herzberg offers another framework for understanding the motivational


implications of work environments.

In his two-factor theory, Herzberg identifies two sets of factors that impact
motivation in the workplace:

Hygiene factors include salary, job security, working conditions,


organizational policies, and technical quality of supervision. Although these
factors do not motivate employees, they can cause dissatisfaction if they
are missing. Something as simple as adding music to the office place or
implementing a no-smoking policy can make people less dissatisfied with
these aspects of their work. However, these improvements in hygiene
factors do not necessarily increase satisfaction.
Satisfiers or motivators include such things as responsibility,
achievement, growth opportunities, and feelings of recognition, and are the
key to job satisfaction and motivation. For example, managers can find out
what people really do in their jobs and make improvements, thus increasing
job satisfaction and performance.

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Following Herzberg's two-factor theory, managers need to ensure that hygiene


factors are adequate and then build satisfiers into jobs.

Alderfer's ERG theory

Clayton Alderfer's ERG (Existence, Relatedness, Growth) theory is built


upon Maslow's hierarchy of needs theory. To begin his theory, Alderfer collapses
Maslow's five levels of needs into three categories.

Existence needs are desires for physiological and material well-being. (In
terms of Maslow's model, existence needs include physiological and safety
needs)
Relatedness needs are desires for satisfying interpersonal relationships.
(In terms of Maslow's model, relatedness correspondence to social needs)

Growth needs are desires for continued psychological growth and


development. (In terms of Maslow's model, growth needs include esteem
and self-realization needs)

This approach proposes that unsatisfied needs motivate behavior, and that as
lower level needs are satisfied, they become less important. Higher level needs,
though, become more important as they are satisfied, and if these needs are not
met, a person may move down the hierarchy, which Alderfer calls the frustration-
regression principle. What he means by this term is that an already satisfied
lower level need can become reactivated and influence behavior when a higher
level need cannot be satisfied. As a result, managers should provide
opportunities for workers to capitalize on the importance of higher level needs.

McClelland's acquired needs theory

David McClelland's acquired needs theory recognizes that everyone prioritizes


needs differently. He also believes that individuals are not born with these needs,
but that they are actually learned through life experiences. McClelland identifies
three specific needs:

Need for achievement is the drive to excel.


Need for power is the desire to cause others to behave in a way that they
would not have behaved otherwise.

Need for affiliation is the desire for friendly, close interpersonal


relationships and conflict avoidance.

McClelland associates each need with a distinct set of work preferences, and
managers can help tailor the environment to meet these needs.

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High achievers differentiate themselves from others by their desires to do things


better. These individuals are strongly motivated by job situations with personal
responsibility, feedback, and an intermediate degree of risk. In addition, high
achievers often exhibit the following behaviors:

Seek personal responsibility for finding solutions to problems


Want rapid feedback on their performances so that they can tell easily
whether they are improving or not

Set moderately challenging goals and perform best when they perceive
their probability of success as 50-50

An individual with a high need of power is likely to follow a path of continued


promotion over time. Individuals with a high need of power often demonstrate
the following behaviors:

Enjoy being in charge


Want to influence others

Prefer to be placed into competitive and status-oriented situations

Tend to be more concerned with prestige and gaining influence over others
than with effective performance

People with the need for affiliation seek companionship, social approval, and
satisfying interpersonal relationships. People needing affiliation display the
following behaviors:

Take a special interest in work that provides companionship and social


approval
Strive for friendship

Prefer cooperative situations rather than competitive ones

Desire relationships involving a high degree of mutual understanding

May not make the best managers because their desire for social approval
and friendship may complicate managerial decision making

Interestingly enough, a high need to achieve does not necessarily lead to being a
good manager, especially in large organizations. People with high achievement
needs are usually interested in how well they do personally and not in influencing
others to do well. On the other hand, the best managers are high in their needs
for power and low in their needs for affiliation.

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MOTIVATION THROUGH EMPLOYEE


PARTICIPATION

Participatory management is a method in


which the employees are involved in every
function of management. They are
empowered. Employees are made involved
in management by making owner, giving
autonomy and providing change to take
participation in decision making process. This increase their dignity, respect
honor and self actualization. As a result, they get motivated to work. To involve
the employees in management is an important source of motivation. This
increases productivity of the organization, commitment of employees, internal
motivation and the employees become ready to accept responsibility and
accountability. There are two techniques to encourage and empower the
employees. They are...

1. Quality of working life: Quality of working life is a technique to motivate


employees to work. QWL indicates the relationship of quality between total
work environment and the employees. If the quality of working life of
employees is good, they become satisfied and hardworking or get
motivated to work. They become successful to perform challenging work.
Sufficient and reasonable remuneration, healthy and safety environment to
give personal identity, opportunity for persona development and security,
opportunity for human competence development etc. are as a whole the
working environment. They are called quality working life. If the QWL is
good the employees become satisfied. So the management should improve
this environment. For this the mechanism such as share ownership, flexible
working hour, quality control team etc should be organized and activated.
Share ownerships...The employee can be involved in management by
providing share ownership. Nowadays most of the companies make the
employees owners by distributing shares to them. Doing so the employees
think the organization to be their own, they become dedicated to the
organization and gets opportunity to take part in decision making process.

Flexible working time....Two types of working table can be used. The first
fixed time working and second flexible working time. The working time from
9 am to 4 pm is called fix time working. Most of the countries of the world
use this type of time. But using this working time, employees cannot get
time to pay electricity tariff, children's fee to school, post office to drop the
letters, draw money from bank etc. So the employees should be given the
facility to reach office earlier in morning and leave it before office time or
reach late in the morning and work there even after the office time or use
the long break for such private work and work in the office up to late

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evening. If such facility is given they need to take leave and can do their
private work.

Quality circle...The team formed to solve production problems and improve


quality of goods is called quality circle(QC). QC is a small group of
employees. QC is formed involving experienced and specialist employees.
Such circle tries to decrease cost price, increase quality of goods.

2. Self managed team: The tea formed without formal supervision is called
self managed team. The duties, authorities and responsibility of the
members of such organization are not formally defined. The leadership of
such team is held on the basis of personal charisma. The member of the
team work with discipline and become goal oriented. They have high
morale. They utilize the freedom to use to show their ability. Self managed
team is a group of 10 to 15 employees. They have responsibility of planning
and scheduling of work, task assignment to members, taking action to
solve problems, decision making about operation and collective control
over performance. The characteristics of such team are....
The team becomes responsible for the whole work.
The member becomes gifted with various qualities and skills.

The authority to determine working procedure, making work routine,


handing over work etc lies with such team.

The performance of the team is based on remuneration and feedback.

Self managed team is spontaneously formed. The team members get opportunity
to show their efficiency and skill in performance.

*************

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