MGT 104

1. Organizational Behavior (OB) is the study of human behavior in organizational settings, the
interface between human behavior and the organization, and the organization itself.

Organizational Behavior researchers study the behavior of individuals primarily in their

organizational roles.

One of the main goals of organizational behavior is to revitalize organizational theory and
develop a better conceptualization of organizational life.

As a multidisciplinary field, organizational behavior has been influenced by developments in a

number of allied disciplines including sociology, psychology, economics, and engineering as
well as by the experience of practitioners.

What Are Organizational Systems?

An organizational system is the structure of how an organization is set up. That structure defines
how each division of a business is set up, the hierarchy of who reports to whom and how
communication flows throughout the organization. Broken down even further, an organizational
structure defines how each role in an organization functions. With a well-defined organizational
structure in place, all employees know what is expected of them and to whom they report.
Business owners should think long and hard about which system to choose, as each organization
has unique needs. An organizational structure that is right for one company will not be right for
another.

An organizational system is, quite simply, how a company is set up. A good organizational structure lays
out both a hierarchy and the flow of communication in a company. It is important for every business, no
matter its size, to implement an organizational system. There are many benefits to having a well-defined
organizational structure, including improved efficiency, productivity and decision-making. Each structure
has its strengths and weaknesses. Ultimately, these pros and cons depend on the type of business you
run, your industry, the size of your organization and other factors. It is important to consider every kind
of organizational system before deciding which is right for your company.

Organizational dynamics is defined as the process of continuously strengthening

resources and enhancing employee performances. It can also be described as how an
organization manages and promotes organizational learning, better business practices
and strategic management.
 2. A.) Individual behavior can be defined as how an individual behaves at work. A person’s
behavior is influenced by the following factors −

 Attitude
 Perception
 Personality
 Stress
 Belief
 Norms or other psychological matters

The factors influencing individual behavior are −

 Perception − It is the result of various senses like feeling, seeing, hearing etc.
 Attitude − We can either have a positive attitude or negative attitude, like i like my job is
expressing a positive attitude towards my work.
 Personality − For example, some people seem to be very friendly, while there are some
who take time to open up.
 Values − It influences perception of problem and marks individual’s decision making
process.
 Emotions − There are happy moments we cherish and the sad moments like anger,
frustration, etc. that we try to forget.

b.) Stages of Group Development - Orientation (Forming Stage)

The first stage of group development is the forming stage. This stage presents a time where the
group is just starting to come together and is described with anxiety and uncertainty.

Members are discreet with their behavior, which is driven by their desire to be accepted by all
members of the group. Conflict, controversy, misunderstanding and personal opinions are
avoided even though members are starting to form impressions of each other and gain an
understanding of what the group will do together.

Typical consequences of the forming stage include achieving an understanding of the group's
purpose, determining how the team is going to be organized and who will be responsible for
what, discussion of major milestones or phases of the group's goal that includes a rough project
schedule, outlining general group rules that includes when they will meet and discovery of what
resources will be available for the group to use.

At this stage, group members are learning what to do, how the group is going to operate, what is
expected, and what is acceptable.

Power Struggle (Storming Stage)

The second stage of group development is the storming stage. The storming stage is where
dispute and competition are at its greatest because now group members have an understanding of
the work and a general feel of belongingness towards the group as well as the group members.

This is the stage where the dominating group members emerge, while the less confrontational
members stay in their comfort zone.

Questions around leadership, authority, rules, policies, norms, responsibilities, structure,

evaluation criteria and reward systems tend to arise during the storming stage. Such questions
need to be answered so that the group can move further on to the next stage.

Cooperation and Integration (Norming Stage)

In this stage, the group becomes fun and enjoyable. Group interaction are lot more easier, more
cooperative, and productive, with weighed give and take, open communication, bonding, and
mutual respect.

If there is a dispute or disruption, it’s comparatively easy to be resolved and the group gets back
on track.

Group leadership is very important, but the facilitator can step back a little and let group
members take the initiative and move forward together.

Synergy (Performing Stage)

Once a group is clear about its needs, it can move forward to the third stage of group
development, the norming stage. This is the time where the group becomes really united.

At this stage, the morale is high as group members actively acknowledge the talents, skills and
experience that each member brings to the group. A sense of belongingness is established and the
group remains focused on the group's purpose and goal.

Members are flexible, interdependent, and trust each other. Leadership is distributive and
members are willing to adapt according to the needs of the group.

Closure (Adjourning Stage)

This stage of a group can be confusing and is usually reached when the task is successfully
completed. At this stage, the project is coming to an end and the team members are moving off in
different directions.

This stage looks at the team from the perspective of the well-being of the team instead of the
perspective of handling a team through the original four stages of team growth.
GROUP DECISION MAKING
Group decision making is a type of participatory process in which multiple individuals acting
collectively, analyze problems or situations, consider and evaluate alternative courses of action,
and select from among the alternatives a solution or solutions. The number of people involved in
group decision-making varies greatly, but often ranges from two to seven. The individuals in a
group may be demographically similar or quite diverse. Decision-making groups may be
relatively informal in nature, or formally designated and charged with a specific goal. The
process used to arrive at decisions may be unstructured or structured. The nature and
composition of groups, their size, demographic makeup, structure, and purpose, all affect their
functioning to some degree. The external contingencies faced by groups (time pressure and
conflicting goals) impact the development and effectiveness of decision-making groups as well.

In organizations many decisions of consequence are made after some form of group decision-
making process is undertaken. However, groups are not the only form of collective work
arrangement. Group decision-making should be distinguished from the concepts of teams,
teamwork, and self managed teams. Although the words teams and groups are often used
interchangeably, scholars increasingly differentiate between the two. The basis for the distinction
seems to be that teams act more collectively and achieve greater synergy of effort. Katzenback
and Smith spell out specific differences between decision making groups and teams:

 The group has a definite leader, but the team has shared leadership roles
 Members of a group have individual accountability; the team has both individual and collective
accountability.
 The group measures effectiveness indirectly, but the team measures performance directly
through their collective work product.
 The group discusses, decides, and delegates, but the team discusses, decides, and does real
work.

GROUP DECISION MAKING METHODS

There are many methods or procedures that can be used by groups. Each is designed to improve
the decision-making process in some way. Some of the more common group decision-making
methods are brainstorming, dialetical inquiry, nominal group technique, and the delphi
technique.

BRAINSTORMING.

Brainstorming involves group members verbally suggesting ideas or alternative courses of

action. The "brainstorming session" is usually relatively unstructured. The situation at hand is
described in as much detail as necessary so that group members have a complete understanding
of the issue or problem. The group leader or facilitator then solicits ideas from all members of
the group. Usually, the group leader or facilitator will record the ideas presented on a flip chart
or marker board. The "generation of alternatives" stage is clearly differentiated from the
"alternative evaluation" stage, as group members are not allowed to evaluate suggestions until all
ideas have been presented. Once the ideas of the group members have been exhausted, the group
members then begin the process of evaluating the utility of the different suggestions presented.
Brainstorming is a useful means by which to generate alternatives, but does not offer much in the
way of process for the evaluation of alternatives or the selection of a proposed course of action.

One of the difficulties with brainstorming is that despite the prohibition against judging ideas
until all group members have had their say, some individuals are hesitant to propose ideas
because they fear the judgment or ridicule of other group members. In recent years, some
decision-making groups have utilized electronic brainstorming, which allows group members to
propose alternatives by means of e-mail or another electronic means, such as an online posting
board or discussion room. Members could conceivably offer their ideas anonymously, which
should increase the likelihood that individuals will offer unique and creative ideas without fear of
the harsh judgment of others.

DIALETICAL INQUIRY.

Dialetical inquiry is a group decision-making technique that focuses on ensuring full

consideration of alternatives. Essentially, it involves dividing the group into opposing sides,
which debate the advantages and disadvantages of proposed solutions or decisions. A similar
group decision-making method, devil's advocacy, requires that one member of the group
highlight the potential problems with a proposed decision. Both of these techniques are designed
to try and make sure that the group considers all possible ramifications of its decision.

NOMINAL GROUP TECHNIQUE.

The nominal group technique is a structured decision making process in which group members
are required to compose a comprehensive list of their ideas or proposed alternatives in writing.
The group members usually record their ideas privately. Once finished, each group member is
asked, in turn, to provide one item from their list until all ideas or alternatives have been publicly
recorded on a flip chart or marker board. Usually, at this stage of the process verbal exchanges
are limited to requests for clarification—no evaluation or criticism of listed ideas is permitted.
Once all proposals are listed publicly, the group engages in a discussion of the listed alternatives,
which ends in some form of ranking or rating in order of preference. As with brainstorming, the
prohibition against criticizing proposals as they are presented is designed to overcome
individuals' reluctance to share their ideas. Empirical research conducted on group decision
making offers some evidence that the nominal group technique succeeds in generating a greater
number of decision alternatives that are of relatively high quality.

DELPHI TECHNIQUE.

The Delphi technique is a group decision-making process that can be used by decision-making
groups when the individual members are in different physical locations. The technique was
developed at the Rand Corporation. The individuals in the Delphi "group" are usually selected
because of the specific knowledge or expertise of the problem they possess. In the Delphi
technique, each group member is asked to independently provide ideas, input, and/or alternative
solutions to the decision problem in successive stages. These inputs may be provided in a variety
of ways, such as e-mail, fax, or online in a discussion room or electronic bulletin board. After
each stage in the process, other group members ask questions and alternatives are ranked or rated
in some fashion. After an indefinite number of rounds, the group eventually arrives at a
consensus decision on the best course of action.

ADVANTAGES AND DISADVANTAGES

OF GROUP DECISION MAKING
The effectiveness of decision-making groups can be affected by a variety of factors. Thus, it is
not possible to suggest that "group decision making is always better" or "group decision making
is always worse" than individual decision-making. For example, due to the increased
demographic diversity in the workforce, a considerable amount of research has focused on
diversity's effect on the effectiveness of group functioning. In general, this research suggests that
demographic diversity can sometimes have positive or negative effects, depending on the
specific situation. Demographically diverse group may have to over-come social barriers and
difficulties in the early stages of group formation and this may slow down the group. However,
some research indicates that diverse groups, if effectively managed, tend to generate a wider
variety and higher quality of decision alternatives than demographically homogeneous groups.

Despite the fact that there are many situational factors that affect the functioning of groups,
research through the years does offer some general guidance about the relative strengths and
weaknesses inherent in group decision making. The following section summarizes the major pros
and cons of decision making in groups.

ADVANTAGES.

Group decision-making, ideally, takes advantage of the diverse strengths and expertise of its
members. By tapping the unique qualities of group members, it is possible that the group can
generate a greater number of alternatives that are of higher quality than the individual. If a
greater number of higher quality alternatives are generated, then it is likely that the group will
eventually reach a superior problem solution than the individual.

Group decision-making may also lead to a greater collective understanding of the eventual
course of action chosen, since it is possible that many affected by the decision implementation
actually had input into the decision. This may promote a sense of "ownership" of the decision,
which is likely to contribute to a greater acceptance of the course of action selected and greater
commitment on the part of the affected individuals to make the course of action successful.

DISADVANTAGES.

There are many potential disadvantages to group decision-making. Groups are generally slower
to arrive at decisions than individuals, so sometimes it is difficult to utilize them in situations
where decisions must be made very quickly. One of the most often cited problems is groupthink.
Irving Janis, in his 1972 book Victims of Groupthink, defined the phenomenon as the
"deterioration of mental efficiency, reality testing, and moral judgment resulting from in-group
pressure." Groupthink occurs when individuals in a group feel pressure to conform to what
seems to be the dominant view in the group. Dissenting views of the majority opinion are
suppressed and alternative courses of action are not fully explored.

Research suggests that certain characteristics of groups contribute to groupthink. In the first
place, if the group does not have an agreed upon process for developing and evaluating
alternatives, it is possible that an incomplete set of alternatives will be considered and that
different courses of action will not be fully explored. Many of the formal decision-making
processes (e.g., nominal group technique and brain-storming) are designed, in part, to reduce the
potential for groupthink by ensuring that group members offer and consider a large number of
decision alternatives. Secondly, if a powerful leader dominates the group, other group members
may quickly conform to the dominant view. Additionally, if the group is under stress and/or time
pressure, groupthink may occur. Finally, studies suggest that highly cohesive groups are more
susceptible to groupthink.

Group polarization is another potential disadvantage of group decision-making. This is the

tendency of the group to converge on more extreme solutions to a problem. The "risky shift"
phenomenon is an example of polarization; it occurs when the group decision is a riskier one
than any of the group members would have made individually. This may result because
individuals in a group sometimes do not feel as much responsibility and accountability for the
actions of the group as they would if they were making the decision alone.

Decision-making in groups is a fact of organizational life for many individuals. Because so many
individuals spend at least some of their work time in decision-making groups, groups are the
subjects of hundreds of research studies each year. Despite this, there is still much to learn about
the development and functioning of groups. Research is likely to continue to focus on identifying
processes that will make group decision-making more efficient and effective. It is also likely to
examine how the internal characteristics of groups (demographic and cognitive diversity) and the
external contingencies faced by groups affect their functioning.

Understanding work teams in Organizational behavior

Work teams imply a high degree of coordination among their members, along with a shared
belief that winning (achieving team goals) is not only desirable but the very reason for the team's
existence. Any team is therefore a group, but only some groups have the high degree of
interdependence and commitment to success we associate with a team.

Although the desire to achieve high levels of commitment and coordination is common among
organizations using teamwork, the nature of specific teams varies considerably.

Two major dimensions along which teams differ are differentiation of team roles and integration
into the organization.

i. Differentiation: is the extent to which team members are specialized relative to others in
the organization.
ii. Integration: is the degree to which the team must coordinate with managers, employees,
suppliers and customers outside the team.
Types of Teams

Based on their objectives teams may be classified as problem-solving teams, self-managed teams
and cross-functional teams.

1. Problem-Solving Teams: Problem-solving teams consists of groups of 5 – 10 employees

from the same department who meet for a few hours each week to discuss ways of
improving quality, efficiency and the work environment. These members share ideas or
offer suggestions on how work processes and methods can be improved. Problem-solving
teams meet regularly to discuss their quality problems, investigate causes of the problems
recommend solutions and take corrective actions.
2. Self-Managed Work Teams: A self-managed team includes collective control over the
pace of work, determination of work assignments, organization of breaks, and collective
choice of inspection procedures. Fully self-managed work teams even select their own
members and have the members evaluate each others performance. As a result,
supervisory positions take on decreased importance and may even be eliminated. These
teams do their own scheduling, rotate jobs on their own, establish production targets, set
pay scales that are linked to skills, fire coworkers and do the hiring.
3. Cross-Functional Teams: Cross-functional teams are made up of employees from about
the same hierarchical level, but from different work areas, who come together to
accomplish a task. Cross-functional teams are an effective way to allow people from
diverse areas within an organization (or even between organization) to exchange
information, develop new ideas and solve problems and coordinate complex projects.
These teams are not easy to manage. Their early stages of development are often very
time consuming as members learn to work with diversity and complexity. It takes time to
build trust and teamwork, especially among people from different backgrounds, with
different experiences and perspectives.

There are two types of cross-functional teams. They are: -

Task force: It is nothing other than a temporary cross-functional team.

Committees: Composed of groups made up of members from across departmental lines.

Basic Motivation concept

In the 1950’s three specific theories were formulated and are the best known.

They are; Hierarch of Needs Theory by Maslow. Theory X and Theory Y by Mcgregor and Two-
factor theory of Herzberg.

Maslow’s Hierarchy of Needs theory shows that an individual has a hierarchy of five needs that
shape his reaction to any particular situation.

Human has a hierarchy of 5 needs;

 1. Physiological.
2. safety needs.
3. Social.
4. Esteem
5. Self-actualization.

Theory X and Theory Y of Motivation by McGregor

Douglas McGregor expressed his views of human nature in two sets of assumptions. They are
popularly known as ‘Theory X’ and ‘Theory Y’.

Theory X stands for the set of traditional beliefs held, while Theory-Y stands for the set of
beliefs based on researchers in behavioral science which are concerned with modern social views
on the man at work.

These two theories represent the extreme ranges of assumptions. The managerial attitudes and
supervisory practices resulting from such assumptions have an important bearing on employees’
behavior.

Theory X assumptions are negative;

 Employees inherently dislike work and, whenever possible, will attempt to avoid it.
 Since’ employees dislike work, they must be coerced, controlled, or threatened with
punishment.
 Employees will avoid responsibilities and seek formal direction whenever possible.
 Most workers place security above all other factors and will display little ambition.
Theory Y assumptions are positive;
 Employees can view work as being as natural as rest or play.
 People will exercise self-direction and self-control if they are committed to the
objectives.
 The average person can learn to accept, even seek, responsibility.
 The ability to make innovative decisions is widely dispersed throughout the population.

Herzberg’s motivation theory is based on two types of factors. These factors are satisfiers
(motivational) and dissatisfy (maintenance or hygiene).

Dissatisfied include the factors of company policy and administration, salary, supervision,
working conditions, interpersonal relations, status, job security, and personal life.

However; dissatisfies are not motivators.

The satisfiers are motivators and therefore related to job content. They include the factors like
achievement, recognition, challenging work, advancement, responsibility and growth in the job.
Their existence yields feelings of satisfaction.
The first groups of factors are called maintenance factors.

Their presence will not motivate people, yet they must be present. In fact, they provide an almost
neutral feeling among the people of an organization, but their withdrawal or absence creates
dissatisfaction.

The second groups, or the job content factors, are found to be the real motivators; because they
have the potential of yielding a sense of satisfaction.

To summarize the Two-factor theory;

 Intrinsic or satisfiers (motivational) factors, such as advancement, recognition,

responsibility, and achievement seem to be related to job satisfaction.
 Dissatisfied respondents tended to cite extrinsic or hygiene (maintenance) factors, such as
supervision, pay, company policies, and working conditions.
  The opposite of satisfaction is not dissatisfaction.
 Removing dissatisfying characteristics from a job does not necessarily make the job
satisfying.

Job satisfaction factors are separate and distinct from job dissatisfaction factors. Managers who
eliminate job dissatisfaction factors may not necessarily bring about motivation.

When hygiene factors are adequate, people will not be dissatisfied; neither will they be satisfied.
To motivate people, emphasize factors intrinsically rewarding that are associated with the work
itself or to outcomes directly derived from it.

Comparison Chart
Basis for
Maslow’s Need Hierarchy Theory Herzberg’s Two-factor Theory
Comparison

Maslow's Theory is a general theory on Herzberg's Theory on motivation says that

motivation which states that the urge to there are various factors existing at the
Meaning
satisfy needs is the most important factor workplace that causes job satisfaction or
in motivation. dissatisfaction.

Nature Descriptive Prescriptive

Relies on Needs and their satisfaction Reward and Recognition

Order of needs Hierarchical No sequence

Gratified needs regulate behavior and

Core concept Unsatisfied needs stimulate individuals.
performance.

Division Growth and deficiency needs. Hygiene and motivator factors.

Motivator Unsatisfied needs Only higher order needs

Contemporary Theories of Motivation

The following theories are considered contemporary, since they represent the
current state of the art in explaining employee motivation

ERG Theory
 Alderfer (1972) classifies needs into three categories into hierarchical
order. They are:

The existence category

  Provides our basic material existence requirements.
  They include Maslow’s physiological and safety needs.

Relatedness category
  The desire we have for maintaining important interpersonal
relationships.
  These social and status desires require interaction with others.
  They align with Maslow’s social need and the external component.

Growth category
  An intrinsic desire for personal development.
  These include the intrinsic component from Maslow’s esteem category,
and the characteristics included under self-actualization.

This theory is very similar to Maslow’s theory. Existence need

corresponds with Maslow’s physiological and safety needs, Relatedness
need corresponds with Maslow’s social needs and Growth need
corresponds with Maslow’s esteem and self-actualization needs.

The relationship between Maslow’s theory and Herzberg’s theory is shown below.

A comparison of Maslow, Alderfer and Hertzberg

GROWTH Self - Actualisation External Esteem Need

RELATEDNESS - Internal Esteem needs Social needs

EXISTENCE - Safety needs Physiological needs

ERG theory is similar to Maslow's Hierarchy of needs; Alderfer did

differ from Maslow in two important ways. According to Alderfer
hierarchy is not included and a need may be satisfied, that may
continue to dominate. More than one level of need can cause
motivation at the same time and if need remain unsatisfied at some
high level, the individual will regress to lower level, and begin to move
to lower needs again.

Hertzberg's hygiene factors represent Maslow's physiological, security

and belongingness needs and Alderfer's existence and relatedness
needs. Maslow's esteem and self-actualization needs are similar to
Hertzberg's motivators and Alderfer's growth factor.

Alderfer’s ERG theory differs from Maslow’s in the following

arguments:
1 More than one need may be operative at the same time.
2 If, the gratification of a higher-level need is stifled, the desire to
satisfy a lower-level need increases.
3 ERG theory does not assume that there exists a rigid hierarchy. A
person can be working on growth even though existence or
relatedness needs are unsatisfied, or all three need categories could be
operating at the same time.

ERG theory also contains a frustration-regression dimension. Maslow

argued that an individual would stay at a certain need level until that
need was satisfied. ERG argues that multiple needs can be operating
as motivators at the same time. ERG theory notes that when a higher-
order need level is frustrated, the individual’s desire to increase a
lower-level need takes place (Robbins, 2003).
McClelland’s Theory of Needs

McClelland’s (1961) theory focuses on three needs: achievement,

power, and affiliation. They are defined as follow:

i) Need for achievement (nAch) – Individuals high in. nAch derive

satisfaction from reaching goals. The feeling of successful task
accomplishment is important to the high achiever. High achievers
prefer immediate feedback on their performance and they generally
undertake tasks of moderate difficulty rather than those that are either
very easy or very difficult. They also prefer to work independently so
that successful task performance (or failure) can be related to their
own efforts rather than the efforts of someone else.

ii) Need for power (nPow): The individual exhibiting this need as the
dominant one derives satisfaction from his or her ability to control
others. Actual achievement of desired goals is of secondary importance
to the high nPow individual; instead the means by which goals are
achieved (the exercise of power) are of primary importance.
Individuals with a high nPow derive satisfaction from being in positions
of influence and control. Organizations that foster the power motive
tend to attract individuals with a high need for 'power’ (for example
military organization).

iii) Need for affiliation (nAff): Individuals exhibiting this need as a

dominant motive derive satisfaction from social and interpersonal
activities. There is a need to form strong interpersonal ties and to "get
close" to people psychologically. If asked to choose between working
at a task with those who are technically competent and those who are
their friends, high nAfft individuals will chose their friends.

Based on this theory, the following assumptions can be made

(Robbins, 2003):
  Individuals with a high need to achieve prefer job situations with
personal responsibility, feedback, and an intermediate degree of risk.
When these characteristics are prevalent, high achievers will be
strongly motivated.
  A high need to achieve does not necessarily lead to being a good
manager, especially in large organizations. People with a high
achievement need are interested in how well they do personally and
not in influencing others to do well.
  The needs for affiliation and power tend to be closely related to
managerial success. The best managers are high in their need for
power and low in their need for affiliation.

Cognitive Evaluation Theory

This theory proposes (Deci & Ryan, 1985) that when extrinsic rewards
are used by organizations as payoffs for superior performance, the
intrinsic rewards, which are derived from individuals doing what they
like, are reduced. The popular explanation is that the individual
experiences a loss of control over his or her own behavior so that the
previous intrinsic motivation diminishes. Furthermore, the elimination
of extrinsic rewards can produce a shift – from an external to an
internal explanation – in an individual’s perception of causation of why
he or she works on a task (Robbins, 2003).

Therefore, pay or other extrinsic rewards should be made contingent

on an individual’s performance.

This theory may have limited applicability to work organizations,

because most low-level jobs are not inherently satisfying enough to
foster high intrinsic interest, and many managerial and professional
positions offer intrinsic rewards

Goal-Setting Theory
 Locke and Latham (1990) proposed that challenging goals produce a
higher level of output than do the generalized goals. More difficult the
goal, the higher the level of performance will be. People will do better
when they get feedback on how well they are progressing toward their
goals. A goal serves as a motivator, because, it causes people to
compare their present capacity to perform with that required to
succeed at the goal.
There are four contingencies in goal-setting theory:

  Goal commitment: Goal-setting theory presupposes that an individual

is committed to the goal.
  Adequate self-efficacy: Self-efficacy refers to an individual’s belief that
he or she is capable of performing a task. The higher your self-
efficacy, the more 1confidence you have in your ability to succeed in a
task.
  Task characteristics: Individual goal setting does not work equally well
on all tasks. Goals seem to have a more substantial effect on
performance when tasks are simple, well-learned, and independent.
  National culture: Goal-setting theory is culture bound and it is well
adapted to North American cultures.

Reinforcement Theory

Reinforcement theory (Komaki et. al., 1991) argues that reinforcement

conditions human behavior. According to this theory, behavior is a
function of its consequences. Behavior is environmentally caused. It
can be modified (reinforced) by providing (controlling) consequences.
Reinforced behavior tends to be repeated.

Equity Theory
 According to this theory (Adams, 1965), employees make comparisons
of their job inputs and outcomes relative to those of others. If, an
individual perceives the input-outcome ratio to be equal to that of the
relevant others with whom he/she compares him/herself, a state of
equity is said to exist. He/she perceives the situation as fair. If the
ratio appears to be unequal, the individual experience inequity.

There are four referent comparisons that an employee can use:

  Self-inside: An employee’s experiences in a different position inside his

or her current organization
  Self-outside: An employee’s experiences in a situation or position
outside his or her current organization
  Other-inside: Another individual or group of individuals inside the
employee’s organization
  Other-outside: Another individual or group of individuals outside the
employee’s organization

There are certain issues which are crucial regarding Equity theory.
They are as follows:

1 Employees with short tenure in their current organizations tend to

have little information about others.
2 Employees with long tenure rely more heavily on co-workers for
comparison.
3 Upper-level employees will make more other-outside comparisons.

When employees perceive an inequity, they can be predicted to make

one of six choices:

  Change their inputs.

  Change their outcomes.
  Distort perceptions of self.
  Distort perceptions of others.
  Choose a different referent.
  Leave the field.

Organizational justice

People’s perceptions of fairness in organizations, consisting of

perceptions of how decisions are made regarding the distribution of
outcomes and the perceived fairness of those outcomes themselves.

1. Distributive Justice : The perceived fairness of the way rewards are

distributed among people.

2. Procedural Justice : Perceptions of the fairness of the procedures

used to determine outcomes.

3. Interactional Justice : The perceived fairness of the interpersonal

treatment used to determine organizational outcomes.

Motivational tips

Certain tips, which may be important in this regard, are as follows:

Avoid underpayment.

1. Avoid overpayment.
2. Give people a voice in decisions affecting them.
 3. Explain outcomes thoroughly using a socially sensitive manner.

Expectancy Theory

Expectancy theory is one of the most widely accepted explanations of

motivation. Victor Vroom’s (1964) expectancy theory has its critics but
most of the research is supportive. Motivation is based on people’s
beliefs, goals and linkage between effort and performance,
performance and reward, and reward and individual goal satisfaction.
Expectancy theory argues that the strength of a tendency to act in a
certain way depends on the strength of an expectation that the act will
be followed by a given outcome and on the attractiveness of that
outcome to the individual.
Determinants of motivation according to this theory are as follows:
Expectancy: The belief that one’s efforts will positively influence one’s
performance.

Instrumentality: An individual’s beliefs regarding the likelihood of

being rewarded in accord with his or her own level of performance.
Valence: The value a person places on the rewards he or she expects
to receive from an organization.

Other Determinants: Skills and abilities, role perceptions, opportunities

to perform, etc.

Three key relationships in Expectancy theory are:

  Effort-performance relationship: the probability perceived by the

individual that exerting a given amount of effort will lead to
performance
  Performance-reward relationship: the degree to which the individual
believes that performing at a particular level will lead to the
attainment of a desired outcome

  Rewards-personal goals relationship: the degree to which organizational rewards

satisfy an individual’s personal goals or needs and the attractiveness of those
potential rewards for the individual.

Performance formula

A popular way of thinking about employee performance is as a function of the

interaction of ability and motivation; that is,

Performance = f (Ability x Motivation x Opportunity).

If either of motivation or ability is inadequate, performance will be

negatively affected. Furthermore, when an employee performs, he/she
needs opportunity to be allowed to perform and prove his/her worth.

Applying Motivation from concepts to application

Hertzberg's Two-Factor Theory

This theory considers two factors: motivation and hygiene. Motivation factors include receiving
recognition for good efforts, enjoying work and having a career path. Hygiene factors include
salary, benefits and relationships with co-workers and managers.

The two factors are applied in the workplace through comprehensive salary and benefits
programs, developing team-building workshops and creating ways to recognize good
performance. Be competitive when recruiting so you motivate people to stay and remain loyal.

Maslow's Hierarchy of Needs

Maslow's theory talks about meeting the basic needs of employees, which include psychological
well being, safety, belonging and esteem. To apply this at work, managers can implement
diversity training and programs that celebrate differences in people. Safety issues are governed
by law, but when managers take an extra effort to look at things like desk ergonomics it adds to
employee morale. Managers should limit use of authoritarian methods that invoke fear in
employees.

Employees need to be respected by managers and co-workers during daily tasks. Additionally,
workers should be able to develop an action plan for personal success.

Hawthorne Effect on Productivity

The Hawthorne theory is a productivity theory based on the physical conditions employees work
in. This includes lighting, shift hours and breaks. It also includes observation as a key motivator
for performance. Hawthorne found that people were more productive based on the idea of being
observed rather than changes in their physical working conditions.

As a manager, you can observe employees either physically or through consistent reporting. If
people know someone is watching, whether constantly or randomly, they increase productivity.

Expectancy Theory of Performance

Expectancy theory simply states that people will perform based on what they expect the result
will be. The three elements are expectancy, instrumentality and valence. The theory states that
the employee will work toward a believed achievement if that achievement garners a reward and
the reward is valued.

Managers can set the tone for achievement and rewards with employee recognition contests
based on what employees value. An example is earning a company parking spot for being the
employee of the month.

Attribution Theory and Response to Success or Failure

Attribution theory refers to how people respond to success or failure. By looking at the reasons
for the end result, employees are able to identify why something succeeded or failed. This is
implemented through employee reviews that cover various metrics and identify root causes.

For example, an employee meeting all sales numbers might be making 50 outbound calls per day
while an employee not meeting standards is only making 10. The success and failure are
attributed to the outbound calls and can be adjusted for the second employee. Help employees to
be intentional in daily activities for success
What Is Emotional Intelligence?
Emotional intelligence or EI is the ability to understand and manage your own emotions, and
those of the people around you. People with a high degree of emotional intelligence know what
they're feeling, what their emotions mean, and how these emotions can affect other people.

For leaders, having emotional intelligence is essential for success. After all, who is more likely to
succeed – a leader who shouts at his team when he's under stress, or a leader who stays in
control, and calmly assesses the situation?

According to Daniel Goleman, an American psychologist who helped to popularize emotional

intelligence, there are five key elements to it:

1. Self-awareness.
2. Self-regulation.
3. Motivation.
4. Empathy.
5. Social skills.

The more that you, as a leader, manage each of these areas, the higher your emotional
intelligence. So, let's look at each element in more detail and examine how you can grow as a
leader.

Emotional Intelligence in Leadership

1. Self-awareness

If you're self-aware, you always know how you feel, and you know how your emotions and your
actions can affect the people around you. Being self-aware when you're in a leadership position
also means having a clear picture of your strengths and weaknesses

, and it means behaving with humility

So, what can you do to improve your self-awareness?

 Keep a journal – Journals help you improve your self-awareness. If you spend just a few minutes
each day writing down your thoughts, this can move you to a higher degree of self-awareness.
 Slow down – When you experience anger or other strong emotions, slow down to examine why.
Remember, no matter what the situation, you can always choose how you react to it. (Our
article on Managing Your Emotions at Work

 will help you understand what your emotions are telling you.)
2. Self-regulation

Leaders who regulate themselves effectively rarely verbally attack others, make rushed or
emotional decisions, stereotype people, or compromise their values. Self-regulation is all about
staying in control.

This element of emotional intelligence, according to Goleman, also covers a leader's flexibility and
commitment to personal accountability

So, how can you improve your ability to self-regulate?

 Know your values – Do you have a clear idea of where you absolutely will not compromise? Do
you know what values

 are most important to you? Spend some time examining your "code of ethics." If you know
what's most important to you, then you probably won't have to think twice when you face a
moral or ethical decision – you'll make the right choice.
 Hold yourself accountable – If you tend to blame others when something goes wrong, stop.
Make a commitment to admit to your mistakes and to face the consequences, whatever they
are. You'll probably sleep better at night, and you'll quickly earn the respect of those around
you.
 Practice being calm – The next time you're in a challenging situation, be very aware of how you
act. Do you relieve your stress by shouting at someone else? Practice deep-breathing exercises
to calm yourself. Also, try to write down all of the negative things you want to say, and then rip
it up and throw it away. Expressing these emotions on paper (and not showing them to anyone!)
is better than speaking them aloud to your team. What's more, this helps you challenge your
reactions to ensure that they're fair!

3. Motivation

Self-motivated leaders work consistently toward their goals, and they have extremely high
standards for the quality of their work.

How can you improve your motivation?

 Re-examine why you're doing your job – It's easy to forget what you really love about
your career. So, take some time to remember why you wanted this job. If you're unhappy
in your role and you're struggling to remember why you wanted it, try the Five Whys

technique to find the root of the problem. Starting at the root often helps you look at your
situation in a new way.

And make sure that your goal statements are fresh and energizing. For more on this, see our
article on Goal Setting
 .

 Know where you stand – Determine how motivated you are to lead. Our Leadership Motivation
Assessment

 can help you see clearly how motivated you are in your leadership role. If you need to increase your
motivation to lead, it directs you to resources that can help.

 Be hopeful and find something good – Motivated leaders are usually optimistic

 , no matter what problems they face. Adopting this mindset might take practice, but it's
well worth the effort.

Every time you face a challenge, or even a failure, try to find at least one good thing
about the situation. It might be something small, like a new contact, or something with
long-term effects, like an important lesson learned. But there's almost always something
positive, if you look for it.

4. Empathy

For leaders, having empathy is critical to managing a successful team or organization. Leaders
with empathy have the ability to put themselves in someone else's situation. They help develop
the people on their team, challenge others who are acting unfairly, give constructive feedback,
and listen to those who need it.

If you want to earn the respect and loyalty of your team, then show them you care by being
empathic.

How can you improve your empathy?

 Put yourself in someone else's position – It's easy to support your own point of view. After all,
it's yours! But take the time to look at situations from other people's perspectives. See our
article on Perceptual Positions

 for a useful technique for doing this.

 Pay attention to body language – Perhaps when you listen to someone, you cross your arms, move
your feet back and forth, or bite your lip. This body language

 tells others how you really feel about a situation, and the message you're giving isn't positive!
Learning to read body language can be a real asset in a leadership role, because you'll be better
able to determine how someone truly feels. This gives you the opportunity to respond
appropriately.
 Respond to feelings – You ask your assistant to work late – again. And although he agrees, you
can hear the disappointment in his voice. So, respond by addressing his feelings. Tell him you
appreciate how willing he is to work extra hours, and that you're just as frustrated about
working late. If possible, figure out a way for future late nights to be less of an issue (for
example, give him Monday mornings off).
5. Social Skills

Leaders who do well in the social skills element of emotional intelligence are great
communicators. They're just as open to hearing bad news as good news, and they're expert at
getting their team to support them and be excited about a new mission or project.

Leaders who have good social skills are also good at managing change and resolving conflicts
diplomatically. They're rarely satisfied with leaving things as they are, but they don't sit back and
make everyone else do the work: they set an example with their own behavior.

So, how can you build social skills?

 Learn conflict resolution – Leaders must know how to resolve conflicts between their team
members, customers, or vendors. Learning conflict resolution

 skills is vital if you want to succeed.

 Improve your communication skills – How well do you communicate? Our communication quiz

 will help you answer this question, and it will give useful feedback on what you can do to improve.

 Learn how to praise others – As a leader, you can inspire the loyalty of your team simply by giving
praise when it's earned. Learning how to praise others is a fine art, but well worth the effort.

What does Moral Leadership mean to you?

Moral Leadership as I understand is -

1. A leader, by definition, is one who guides, who shows the way by example. A leader, if he is
to be effective, must have the ability to persuade others. If there is no persuasion, there simply is
no leadership.

2.In order to be able to persuade others to follow a course of action, a leader must have personal
integrity. If a man cannot be trusted, he cannot lead, for the populous will not be guided by
someone in whom they have no confidence.

Moral Leadership is a very different kind of leadership. Rather than aspiring to being followed,
Moral Leaders aim to serve. Instead of showcasing their own skills, Moral Leaders tend to
develop the capacities of others. Moral Leadership is not about rank – any person holding any
position can be a Moral Leader, but such individuals are always characterized by a deep sense of
ethics, are driven by core ideals (such as justice) and are motivated by the pursuit of a higher
purpose.

Moral Leadership is also about particular capacities and skills. First of all, Moral Leaders know
how to manage themselves, how to temper their egos and how to act with nobility and rectitude.
They are visionary and affect personal change. Moral Leaders also have a highly developed
sense of emotional intelligence and master key social skills. They work to overcome obstacles
and are skilled at the art of consultation. They build consensus navigate diversity and establish
unity. Moral Leaders are the conscience (i.e. moral compass) of an enterprise or organization and
the glue that holds it together.

The term Moral Leadership resonates for this reason, I think, because people see the need for a
broader understanding of what good leadership is. Inherent in the word “moral” is the idea of
right and wrong, so we are looking for right leadership, but whose idea of right and wrong is the
standard?
Defining what the right thing has proven somewhat elusive in the face of competing needs. It
requires introspection, critical thinking and some robust dialogue with diverse groups, which
takes a lot of work and an uncommon ability to lean into the discomforts of uncertainty, ready to
explore and learn.

Let me put an example here, “We do not trust our leader personally, but we like his programs,” is
an oxymoron, an illogical contradiction. If one cannot trust a leader, he cannot know, in the final
analysis, the direction of his “programs.” A component of personal integrity is the matter of
example.

 Moral Leaders Inspire and Elevate Others.

Those with moral authority understand what they can demand of others and what they must
inspire in them. Moral leaders ask people to be loyal not to them, but rather to the overall
purpose and mission of the organization. They don’t see direct reports but fellow journeyers,
animated by hopes and longings, struggles and dreams. Therefore, every decision is made with
consideration of others’ full humanity. And because they see that humanity in others, they’re
more inclusive and better able to listen to and learn from those whom they lead.

 Moral Leaders Are Animated by Both Courage and Patience.

Many leaders use their rank or position in the corporate hierarchy to keep doing the next thing
right. Moral leaders, instead, focus on doing the next right thing. For a CEO or political leader to
do the next right thing, it takes courage and patience. It takes courage to, for instance, speak out
for a principle or larger truth, especially when such an action has the potential to put that leader
in an uncomfortable or vulnerable territory. Think of patience as a way of extending trust to
others by allowing them the time to be more thorough, rigorous and creative—and to consider
the broader, longer-term outcomes of any action. While those with formal or top-down authority
often feel captive to the moment and pressured to act, those with moral authority feel empowered
—and, indeed are entrusted by others—to do the next right thing.

 Moral Leaders Keep Building Muscle.

Authentic leaders don’t stop learning and growing just because they’ve accumulated formal
authority. They continue to build moral muscle by wrestling with questions of right and wrong,
fairness and justice, what serves others and what doesn’t. Their wisdom comes from viewing the
world through a lens that magnifies their own actions by how they impact the greater good. We
all make mistakes, but it’s about what we do and say after those failures and shortcomings. It’s
about how authentically we apologize and make amends.

Moral leaders pause and continually ask if what they’re doing—or what their company or
organization is doing—is compatible with their purpose and mission. Reflecting on their own
actions and leadership in this way builds knowledge and wisdom that can be shared with their
teams, helping others to see their own impact on the world around them.

What is Power?
Power is broadly defined as the ability of an individual to exercise some form of control over
another individual. There is a distinct relationship between power and influence. Different
definitions of power regard it to be a causal efficacy which either be a change noticed in the
world or a psychological pressure that gives people reasons to choose one alternative over the
other. As a kid, your parents had significant influence over your actions, and you would often try
to imitate their preferred behavior so as to please them. In school, the same case applies with
teachers, they could easily influence you to do one thing instead of the other. In these two cases,
both the parents and teachers, have derived authority which gave them the influence over you.

What is Leadership?

The term, ‘leadership’ brings about a bunch of ideas, a political leader, an explorer leading a
team of people through some jungle or an executive within a company. Other people also
broadly define a leader as someone who basically leads a group of people either in politics or
within religion. What really is the right definition of a leader? A leader is an effective individual
who creates a vision, motivates people to work towards achieving the vision, coaches and builds
the team that will pioneer the completion of the vision and manages the end delivery of the
vision.

Just like power there are different types of leadership. In total there are twelve types, but here we
discuss five of the main ones that you have probably come across. Autocratic leadership is that
which the leader maintains full authority and responsibility over his/her subjects. Democratic
leadership is where the subordinates are involved in decision making. Transformational
leadership is that leadership type that is centered around initiating some form of change.
Monarchy leadership is that which authority is passed on from one person to another as a birth
right. Laissez-faire is the leadership type where subordinates are given all the necessary tools to
manage and complete projects on their own.
vs. Leadership : Comparison Chart

Organizational structure is a system used to define a hierarchy within an organization. It

identifies each job, its function and where it reports to within the organization. This structure is
developed to establish how an organization operates and assists an organization in obtaining its
goals to allow for future growth. The structure is illustrated using an organizational chart.

Types of Organizational Structures

Several types of organizational structures are each defined to meet the needs of organizations
that operate differently. The types of organizational structure include divisional, functional,
geographical and matrix. A divisional structure is suitable for organizations with distinct
business units, while a geographical structure provides a hierarchy for organizations that operate
at several locations nationally or internationally.

A functional organizational structure is based on each job's duties. A matrix structure, which has
two or several supervisors for each job to report to, is the most complicated but may be necessary
for large organizations with many locations and functional areas.

Reporting to a Centralized Location

Although there are many types of organizational structures developed to meet each organization's
needs, all of them provide a hierarchy that reports to a centralized location and group of
executives. The highest ranking member of an organizational chart is one or several top
executives referred to as the president, chief executive officer or chief operating officer.

Job Descriptions to Allow for Growth

When an organizational structure is designed, job descriptions can be developed to not only meet
an organizations goals, but allow for organizational and employee growth. Internal equity and
employee retention are a key to successful operations. Recruitment is also one of the highest
investments for organizations, so ensuring employees have promotional opportunities and job
security can assist in reducing recruitment costs.

Salary Structure in an Organization

Organizational structure is also a fundamental core to create salary structures for an organization.
Once the structure is established, salary ranges can be created for each job in the organization. In
most cases, each job is aligned to a salary grade, and each grade has a specified salary range.
This allows an organization to meet its financial goals and ensures salaries are distributed fairly
within financial budgets.

Allow for Organizational Expansion

If an organization expands, the organizational structure allows room for growth. This can include
adding additional layers of management, new divisions, expanding one or several functional
areas or appointing additional top executives. When the structure is reorganized for expansion, it
provides the foundation to edit salaries and job descriptions quickly and efficiently with minimal
disruption to an organization's operations.

Six Elements of Organizational Design

Organizational design is the process of creating the hierarchy within a company. The six
elements of organizational design help business leaders establish the company departments,
chain of command and overall structure. The aspects of organizational structure most notably
reviewed is the organizational chart. Consider these six key aspects when creating the design
elements of an organization.

Work Specialization
Work specialization is the first of the elements of organization structure. Business leaders must
consider the job tasks and specific duties associated with given positions. Dividing work tasks
among different jobs and assigning them to definite levels, is the role of work specialization
elements. An example would be giving the first person in the assembly line the job of putting the
first three components together. The second person in the assembly line might then put the decals
on the product, and the third would put the item in the box.

Leaders should be careful to not overly specialize in any one job because this can lead to
boredom and fatigue. This results in slower work and even errors. Managers may have jobs
assigned and adjust the roles depending on how specialized the job in one area is.

Departmentalization and Compartments
Departmentalization and compartments are two other components of organizational design.
Departments are often a group of workers with the same overall functions. They are often broken
down by broad categories such as functional, product, geographical, process and customer.
Common departments include accounting, manufacturing, customer service and sales.

Compartments might have teams with different department members that are put together for
efficiency. For example, a company delivering IT services to other businesses might have teams
assigned to each company. Each team might have a project manager, a graphic designer, a
coding specialist, a security specialist, a client rep and service provider.

Chain of Command
The chain of command is what the organizational chart typically illustrates. It shows who reports
to who in the company's human resources structure. Some companies have a more traditional
hierarchy with very clear department leaders and executives in charge. Other companies use a
more fluid chain of command and structure where more people are considered part of the same
level of command on a cross-functional team.

There are pros and cons to any model. What is important is that employees know what is
expected of them and how they get information to flow to the proper channels. If an employee
isn't sure who his direct supervisor is due to an unclear chain of command, he might not properly
relay the right information to the right party.

Span of Control
The span of control is the organizational design element that considers the capacity of any
manager. There are limits to the number of people one person can oversee and supervise. The
span of control addresses this design element. If a manager has too many people to oversee, he
might lose his effectiveness and not recognize problems or successes.

A span of four means that for every four managers, sixteen employees can be effectively
managed. Other industries might use a span of eight or another number that describes how the
human resources directors need to disburse managers.

Centralization and Decentralization

Centralization and decentralization are organizational design elements deciding the degree which
decision-making is made at one central level or at various levels by employees. For example, all
major budget decisions would filter to the chief executive officer and chief financial officer in a
centralized fashion. Customer service decisions might be decentralized giving those interacting
with customer directions on how to handle issues but the authority to make certain decisions.

Formalization of Elements
Smaller organizations tend to have informal elements where large organizations formalize roles
more specifically. The reason smaller organizations use less formal standards is that employees
may serve multiple roles as necessary. Bigger organizations need to formalize elements to ensure
the right stuff gets done on time and correctly.

Formalization might also be seen with specific job duties. For example, there may be a very
specific way that payroll is done to ensure that everyone gets paid on time, with the correct
withholding. The sales department might not be very formalized, and might allow each
representative to find his organic process so that he may succeed.

The Effects of Organizational Structure on Behavior

Organizational structure is the grouping of people to accomplish work. It establishes
relationships among a business's managers and workers, giving them authority to carry out
responsibilities. Different kinds of basic configurations exist, and a small-business owner
chooses one over another by the effect a structure is likely to have on work activities. Grouping
people together in a certain way elicits or prevents specific behaviors, so knowing how each
structure shapes employee behavior helps the small-business owner choose the one that produces
the best work culture for accomplishing her strategic goals.

Functional
"Mechanistic" describes the outcome of the functional structure. It's characterized by a top-down
power hierarchy, with decision-making authority pushed up as high as is practically possible.
Many rules exist to keep things running according to a predictable order. People work together
according to function -- salespeople work together on sales, for example -- and employees
perform standardized, narrow jobs. This, coupled with rules and management control, means
employees color within the lines, becoming proficient and efficient at their jobs but exhibiting
little creativity. The structure inhibits initiative and produces followers. The military uses the
functional structure, as do most small businesses.

Team
The team structure produces a much freer workplace. This organic structure adapts as needed by
using fluid employee teams that take charge of company goals and projects. Authority is
decentralized, pushed down to employees, who respond by exhibiting initiative, creativity and
enthusiasm. Accordingly, it has fewer managers -- perhaps only the owner, who oversees all the
teams. Jobs aren’t standardized, and this affects morale: Satisfaction increases as job
specialization decreases. Of course, decreasing specialization decreases efficiency, as well.
Creative industries may use the team structure to good effect.

Divisional
When a company has disparate client categories, product lines or locations, it makes sense to
divide employees into groups dedicated to a single concern. Doing this naturally decentralizes
power, as each division has power over its particular concern. Indeed, each division operates as a
small business unit, and managers respond by learning to behave like leaders.

Matrix
The divisional structure creates unavoidable redundancy; each division must have its own
equipment, for instance. A company may instead combine the functional and divisional
structures in the matrix structure. The functional structure is permanent. Divisional managers
then pull employees from across different functional areas to work in teams on divisional
projects. This matrix gains some of the team model’s flexibility, retains some of the functional
structure’s efficiency, while responding to different market concerns. There’s a built-in potential
for conflict, though. Divisional and functional managers can become territorial and competitive,
and employees may dislike being caught between and answering to two bosses.

Other Conflicts
Both the divisional and functional structures segregate employee groups, which can lead to
insular behavior. Employees in different departments may become indifferent -- even hostile -- to
the concerns of other areas, putting their own well-being first, even ahead of the company’s.
Uncooperative behavior results, and interdepartmental coordination suffers. The team structure,
meanwhile, lives and dies on the ability of team members to rise to challenges. They must be
trained to flourish, not only in their own respective fields of functional expertise, but in areas
such as communication, problem solving and diversity.

Characteristics in making up Organizational culture

These are the strongest held components of culture as they are not influenced, but are evolved and
affect behavior and values of employees of an organization. Thus these 3 components make up the
personality of the organization - the organizational culture. An organizational culture is the outcome of
both the management's initial beliefs and employees' adoption of those beliefs.

Explaining the Primary Characteristics

As we can see, the unique 'behavior' of an organization can be attributed to the makeup of the values
that it espouses - the organizational culture. Let us understand these primary characteristics that define
an organization's culture as a whole, the ones that help shape up the organization's 'personality'.

These are very general characteristics that every organization would have to look into, otherwise the
culture would seem incomplete. Although all these characteristics are at some level a part of every
company, the importance and individual interpretation of each differs from business to business, thus
making each business unique in its own way. There are 7 primary characteristics that belong to an
organizational culture. They are listed below.

Innovation and Risk Taking

Risk and returns go hand in hand. Places where you take a risk (calculated risk of course!), the chances
of returns are higher. Same goes for innovation. You could either be a follower or a pioneer. Pioneering
has its share of risks, but at times, it can also have a breakthrough outcome for the organization. Thus,
innovation and risk taking is one of the main characteristics of organizational culture defining how much
room the business allows for innovation.

Attention to Detail

Attention to detail defines how much importance a company allots to precision and detail in the
workplace. This is also a universal value as the degree of attention the employees are expected to give is
crucial to the success of any business. The management defines the degree of attention to be given to
details.

Outcome Orientation

Some organizations pay more attention to results rather than processes. It is really the business model
of each business that defines whether the focus should be on the outcome or the processes. This
defines the outcome orientation of the business.

People Orientation

This is still one of the most contentious issues in organizational culture today. How much should be the
management focus on the people? Some organizations are famous for being employee oriented as they
focus more on creating a better work environment for its 'associates' to work in. Others still are feudal in
nature, treating employees no better than work-machines.

Team Orientation

It is a well established fact that synergistic teams help give better results as compared to individual
efforts. Each organization makes its efforts to create teams that will have complimentary skills and will
effectively work together.
Aggressiveness

Every organization also lays down the level of aggressiveness with which their employees work. Some
businesses like Microsoft are known for their aggression and market dominating strategies.

Stability

While some organizations believe that constant change and innovation is the key to their growth, others
are more focused on making themselves and their operations stable. The managements of these
organizations are looking at ensuring stability of the company rather than looking at indiscriminate
growth.

Just like having a strong personality adds character to a person, organizational culture does give a
business its own special identity. It helps create cohesion among the employees as they share the
primary characteristics of an organizational culture and imbibes in them the spirit of team work

Culture is transmitted to employees in a number of ways. The most

significant are stories, rituals, material symbols, and language.

 a. Stories: Organizational "stories" typically contain a narrative of

significant events or people including such things as the organization's
founders, rule breaking, reactions to past mistakes, and so forth. 
 For instance, managers at Nike feel that stories told about the
company's past help shape the future. Whenever possible, corporate
"storytellers" (senior executives) explain the company's heritage and
tell stories that celebrate people getting things done.
  
 b. Rituals: Corporate rituals are repetitive sequences of activities that
express and reinforce the values of the organization, what goals are
most important, and which people are important. 
 The "Passing of the Pillars" is an important ritual at Boston Scientific's
facility near Minneapolis, for example. When someone has a
challenging and tough project or assignment, they're "awarded" a
small two-foot high plaster-of-Paris pillar to show that they've got
support from all their colleagues.
  
 c.  Material Symbols: Material symbols convey to employees who is
important, the degree of equality desired by top management, and the
kinds of behavior that are expected and appropriate. 
 Examples of material symbols include the layout of an organization's
facilities, how employees dress, the types of automobiles provided to
top executives, and the availability of corporate aircraft. At WorldNow,
a provider of Internet technology to local media companies, an
 important material symbol is an old dented drill that the founders
purchased for $2 at a thrift store. The drill symbolizes the company's
culture of "drilling down to solve problems."
  
 d.  Language: Many organizations and units within organizations use
language as a way to identify and unite members of a culture. By
learning this language, members attest to their acceptance of the
culture and their willingness to help preserve it.
  For instance, Microsoft employees have their own unique vocabulary:
the term work judo is used to mean "the art of deflecting a work
assignment to someone else without making it appear that you're
avoiding it.

ndividual and Organizational Sources of Resistance to Change

Individual sources of resistance towards a change exist in the basic human tenets or
characteristics and are influenced by the differences in perception, personal background, needs or
personality-related differences. It is important to understand those triggering factors or issues
which refrain individuals from endorsing change or extending their support and cooperation
towards any change initiatives at an organizational level.

Criticizing the individuals or the teams for not being supportive in the stages of transition or
compelling them cannot be an effective solution for implementing change smoothly or in a
hassle free manner.

The resistance towards change at an individual level can be due to various reasons:

 How satisfied they are with the existing state of affairs

 Whether they appreciate the overall end product of change and it’s outcome on them
 How much practical or realistic the change is
 What will be the possible cost change on the individual in terms of potential risks involved,
pressure to develop new competencies and disruptions

The following factors explain why individuals may pose resistance towards change:

 Habits: We individuals are influenced by our habits in our ways of working and accept or reject a
change depending upon the effect which a change may have on the existing habits of the
individuals. For example, change in the office location might be subjected to resistance from the
individuals as this might compel them to change their existing life routine and create a lot of
difficulties in adjustment or coping with the schedule. The individuals might have to drive a
longer way for reaching their office, or start early from home for reaching their office in time,
etc.
 Lack of Acceptability or Tolerance for the Change: Some individuals endorse change and
welcome a change initiative happily while few individuals fear the impact of change. Over a
period of time change fatigue also builds up.
  Fear of a Negative Impact Economically or on the Income: During the process of organizational
restructuring or introduction of organization-wide change as a strategic move on the part of the
management, several inhibitions, and fear rule the thought process of the individuals. Fear of
possible loss of a job as a result of change or a change in their income structure or may be a
change in their work hours could be one amongst the possible reasons.
 Fear of the Unseen and Unknown Future: Individuals develop inertia towards the change due to
the fear of unknown or uncertainties in the future. This can be tackled through effective
communication with the participants of change and making people aware of the positives of
change and the course of action which individuals are expected to follow to cope with the
changing requirements successfully.
 Fear of Losing Something Really Valuable: Any form of threat to personal security or financial
security or threat to the health of the individuals may lead to fear of losing something precious
as a result of the implementation of change.
 Selective Processing of Information: It can be considered as a filtering process in which the
individuals perceive or make judgments by gathering selective information which is greatly
influenced by their personal background, attitude, personal biases or prejudices, etc. If an
individual maintains a negative attitude towards any kind of change, then they are having a
usual tendency of looking at the negativities associated with the change and involve all the
positive aspects of it.
 A Rigid Belief that change cannot bring about any facilitating change in the organization and it
only involves the pain and threats to the individuals.

Now, we will look into the organizational factors which result in resistance to change.

 Resistance Due to the Structural Rigidities or Limitations: Structural resistance is a

characteristic feature of bureaucracies, which focus more on stability, control, set
methodologies or routine.
 Ignoring all the interconnected factors which require change or lack of clarity in understanding
the ground realities.
 Inertia from the Groups: Groups may resist change because just like individuals, groups equally
follow set behavioural patterns, norms or culture and as a result of change the groups might
have to change their existing ways of conduct or behaviour.
 Possible threats to Power, Resources or Expertise can also result in resistance towards an
organization level change. Any kind of devolution of power or transfer of resources from some
agency or group to some other agency or a group will definitely lead to a feeling of fear or
inertia towards a change initiative.

In the end, it can be concluded that any kind of change will surely involve heavy resistance at the
individual as well as organizational level. But through effective communication during all stages
and consulting, desirable outcomes can be ensured by breaking all the possible barriers or
resistances towards a change. What is more important is identifying the main source of resistance
and accordingly developing action plans for dealing with it.

Successful change in an organization will require strong commitment and involvement on the
part of the top management, focused and an integrated approach, strong and a stable leadership,
effective and open communication from the internal change agent for making people sensitive
and more aware of the realities and the ultimate need for change.
For minimizing the resistance towards the change employee participation and involvement in the
overall process plays a crucial role in building acceptability and seeking the cooperation of the
employees towards the change. Hence proper planning, coordinated approach and complete
involvement of all the stakeholders, play a decisive role in implementing strategic decisions and
determining the success of change.

Work Stress
As we have studied so far in this chapter, we can experience a number of possible stressors. We
can divide these stressors into personal stresses and work stresses. Although we divide them for
purposes of ease, it is intuitive that if someone is experiencing personal stress, he or she will also
experience it at work, which will result in lessened workplace performance. In fact, the
American Institute of Stress estimates that workplace stress costs companies $300 billion
annually. This cost is a result of increased absenteeism, employee turnover, and higher medical
and insurance costs due to stress related illness and worker productivity.The American Institute
of Stress, “Stress in the Workplace,” accessed February 19, 2012,
http://www.stress.org/workplace-stress/

According to the American Institute of Stress,The American Institute of Stress, “Stress in the
Workplace,” accessed February 19, 2012, http://www.stress.org/workplace-stress/ some of the
common causes of workplace stress include the following:

1. Long hours and increased demands. The average American works forty-six hours per week.The
Library Spot, “National Sleep Foundation Study,” accessed February 19, 2012,
http://www.libraryspot.com/know/workweek.htm Much of this is due to increased technology
and expectations that employees will be available to answer e-mail on weekends and evenings.
As a result of this added work time, employees find less time to engage in leisure and household
activities such as grocery shopping and cleaning.
2. Being treated unfairly. Workplace issues such as harassment and bullying (both discussed in
Chapter 10 "Manage Diversity at Work") can cause people to feel stress at work. Additional
issues such as feeling overlooked for promotions can also cause workplace stress. In extreme
cases, perceived workplace unfairness can result in violence. For example, Matthew Beck shot
and killed four supervisors in a Connecticut lottery office because he felt he had been unfairly
overlooked for a promotion.Johnathan Rabinnoviz, “Lottery Personnel Shows Lottery Killer Came
Back Early from Leave,” New York Times, March 12, 1988, accessed February 19, 2012,
http://www.nytimes.com/1998/03/12/nyregion/lottery-personnel-file-shows-killer-came-back-
to-work-early-from-a-leave.html? ref=matthewbeck Many organizations offer Employee
Assistance Programs that can offer services, such as counseling, to help deal with workplace
stress and other personal issues.
3. Little or no acknowledgment or reward. People can feel stress when they do not feel they are
being recognized for the work they do. This kind of workplace stress can cause people to
become withdrawn, unmotivated, or unfocused on being productive for the organization. This
type of behavior can also materialize at home with people experiencing this stress being more
irritable, cranky, and moody. At work, these feelings can negatively affect our ability to relate to
our coworkers and manager.
4. Lack of control. Micromanagement refers to excessive control of work details by a supervisor.
For example, a micromanager might tell an employee specific tasks should be worked on in a
 given day and give specific instructions on how those tasks should be accomplished. This type of
situation can create stress, as the employee feels he or she has little control of their own work.
5. Lack of job security. In the last quarter of 2011 (October, November, December), 266,971
employees were subjected to mass company layoffs,The Bureau of Labor Statistics, “Economic
News Release: Mass Layoffs,” accessed February 19, 2012,
http://www.bls.gov/news.release/mslo.nr0.htm and for obvious reasons, this creates stress
upon the workers who had to leave and for those workers who stay. Those workers who have
been laid off may experience financial hardship, and the workers who haven’t been laid off may
need to perform extra work and can suffer from physiological issues even if their jobs were not
eliminated. This phenomenon is called layoff survivor syndrome.JoNel Aleccia, “Guilty and
Stressed, Layoff Survivors Suffers, Too,” MSNBC, accessed February 19, 2012,
http://www.msnbc.msn.com/id/28196734/ns/health-behavior/t/guilty-stressed-layoff-
survivors-suffer-too/ Many of the stressors caused by layoffs can include increased workloads,
increased anxiety, and lower morale.
6. Office politics. Dealing with difficult coworkers or supervisors and different personalities
(Chapter 9 "Handle Conflict and Negotiation") and communication styles (Chapter 4
"Communicate Effectively") can create stress at work. Conflicts, disagreements, and
misunderstandings are common in today’s workplace, especially with the use of technology. All
of these factors, which we call office politics, can create stress, which results in lost sleep,
productivity, and motivation—obviously affecting our ability to relate to others.