UNIT – III

GROUP BEHAVIOR
BA5105 – Organizational Behavior

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 ORGANIZATIONAL
STRUCTURE
 The way in which job tasks are formally divided, grouped, and coordinated.
• Work Specialization or Division of Labor – The degree to which
activities in the organization are subdivided into separate jobs. The essence
of work specialization is to divide a job into a number of steps, each
completed by a separate individual.
• Departmentalization – The basis by which jobs in an organization
are grouped together.
• Chain of Command – The unbroken line of authority that extends
from the top of the organization to the lowest echelon and clarifies who
reports to whom.

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• Authority – The rights inherent in a managerial position to give orders
and to expect the orders to be obeyed.
• Unity of Command – The idea that a subordinate should have only
one superior to whom he or she is directly responsible.
• Centralization – The degree to which decision making is concentrated at
a single point in an organization.
• Span of Control – The number of subordinates a manager can
efficiently and effectively direct.
• Formalization – The degree to which jobs within an organization are
standardized.

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 COMMON ORGANIZATIONAL
DESIGNS
 The Simple Structure - An organization structure characterized by a low
degree of departmentalization, wide spans of control, authority centralized in a
single person, and little formalization.
 The Bureaucracy - An organization structure with highly routine operating
tasks achieved through specialization, very formalized rules and regulations,
tasks that are grouped into functional departments, centralized authority, narrow
spans of control, and decision making that follows the chain of command.
 The Matrix Structure - An organization structure that creates dual lines
of authority and combines functional and product departmentalization.

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 NEW DESIGN OPTIONS

 The Virtual Organization – A small, core organization that

outsources major business functions.
 The Boundaryless Organization – An organization that
seeks to eliminate the chain of command, have limitless spans of
control, and replace departments with empowered teams.
 The Leaner Organization: Downsizing – A systematic
effort to make an organization leaner by closing locations, reducing
staff, or selling off business units that don’t add value.

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7
ORGANIZATION STRUCTURE:
ITS DETERMINANTS AND OUTCOMES

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 WHY DO STRUCTURES
DIFFER?

 Organizational Strategy  Technology Adopted

• Innovation Strategy  Environment Dimensions

• Cost-minimization Strategy • Capacity,

• Imitation Strategy • Volatility,

 Organization Size • Complexity.

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ORGANIZATIONAL STRATEGY
a.Innovation Strategy – A strategy that emphasizes the
introduction of major new products and services.
b.Cost-minimization Strategy – A strategy that
emphasizes tight cost controls, avoidance of unnecessary
innovation or marketing expenses, and price cutting.
c.Imitation Strategy – A strategy that seeks to move into
new products or new markets only after their viability has
already been proven.

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 TECHNOLOGY ADOPTED

• Routine activities are characterized by automated and

standardized operations.
• Nonroutine activities are customized and require
frequent revision and updating.
• In general, organizations engaged in nonroutine activities
tend to prefer organic structures, while those performing
routine activities prefer mechanistic structures.

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ENVIRONMENT DIMENSIONS

a.Capacity refers to the degree to which the

environment can support growth.
b.Volatility describes the degree of instability in the
environment.
c.Complexity is the degree of heterogeneity and
concentration among environmental elements.

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 The more scarce, dynamic, and complex the
environment, the more organic a structure should
be.
 The more abundant, stable, and simple the
environment, the more the mechanistic structure
will be preferred.

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ORGANIZATIONAL DESIGN

• Mechanistic Model – A structure characterized by

extensive departmentalization, high formalization, a
limited information network, and centralization.
• Organic Model – A structure that is flat, uses cross-
hierarchical and cross-functional teams, has low
formalization, possesses a comprehensive information
network, and relies on participative decision making.

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MECHANISTIC MODEL

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ORGANIC MODEL

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LINE ORGANIZATION

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LINE & STAFF ORGANIZATION

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MATRIX ORGANIZATION

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FUNCTIONAL ORGANIZATION

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PROCESS ORGANIZATION

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 G RO U P S I N O RG A N I Z AT I O N

 Groups
Two or more interacting and interdependent individuals who
come together to achieve specific goals.
• Formal groups are work groups that are defined by
the organization’s structure and have designated work
assignments and specific tasks directed at
accomplishing organizational goals.
• Informal groups are social groups. These groups
occur naturally in the workplace and tend to form
around friendships and common interests.

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 FORMAL GROUPS
 Command Groups—Groups that are determined by the
organization chart and composed of individuals who report
directly to a given manager.
 Task Groups—Groups composed of individuals brought
together to complete a specific job task; their existence is often
temporary because when the task is completed, the group
disbands.
 Cross-functional Teams—Groups that bring together the
knowledge and skills of individuals from various work areas or
groups whose members have been trained to do each others’
jobs.

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 Self-managed Teams—Groups that are essentially
independent and that, in addition to their own tasks, take on
traditional managerial responsibilities, such as hiring, planning
and scheduling, and evaluating performance.

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 INFORMAL GROUPS

Interest Groups—People working together to

attain a specific objective with which each is
concerned.

Friendship Groups—People brought together

because they share one or more common
characteristics.

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 GROUP DEVELOPMENT
STAGES

• Bruce W. Tuckman and Mary Ann C. Jensen

1. Forming,
2. Storming,
3. Norming,
4. Performing, and
5. Adjourning

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1. Forming Stage – The first stage of group development in
which people join the group and then define the group’s purpose,
structure, and leadership.
2. Storming Stage – The second stage of group development,
characterized by intragroup conflict.
3. Norming Stage – The third stage of group development,
characterized by close relationships and cohesiveness.

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4. Performing Stage – The fourth stage of group development
when the group is fully functional and works on group task.
5. Adjourning – The final stage of group development for
temporary groups during which group members are concerned
with wrapping up activities rather than task performance.

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 PUNCTUATED –EQUILIBRIUM
MODEL
• An Alternative Model for Temporary Groups with
Deadlines
• A set of phases that temporary groups go through that involves
transitions between inertia and activity.
• Temporary groups with deadlines don’t seem to follow
the usual five-stage model.
• Studies indicate they have their own unique sequencing
of actions (or inaction):
1. Their first meeting sets the group’s direction,

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2. This first phase of group activity is one of inertia,
3. A transition takes place exactly when the group has
used up half its allotted time,
4. This transition initiates major changes,
5. A second phase of inertia follows the transition,
and
6. The group’s last meeting is characterized by
markedly accelerated activity.

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WHY DO PEOPLE FORM
GROUPS?
Social identity theory proposes that people have
emotional reactions to the failure or success of their
group because their self-esteem gets tied into the
group’s performance.
• Social Identity Theory – Perspective that considers
when and why individuals consider themselves members
of groups.

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The employees of the Swedish transportation company Scania shown
here exercising at a sports complex comprise an informal group. At
different company locations, Scania offers employees free access to
sports facilities during working hours. The company puts a high
priority on employee health and offers employees many opportunities
to reinforce an active lifestyle. The informal groups that participate in
sports and exercise activities are neither formally structured nor
organizationally determined. However, informal groups like these can
fulfill employee desires for social interaction at work.

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Social identities help us understand who we are and
where we fit in with other people, but they can have
a negative side as well.
• Ingroup Favoritism – Perspective in which we see
members of our ingroup as better than other people, and
people not in our group as all the same.

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Social identities help Bal Seal Engineering employees interact with co-
workers. The company’s Spanish-speaking employees gather at the home
of a co-worker to participate in an English-as- asecond- language
program. Bal Seal, which buys the training materials for the program,
reports that it has improved the company’s communications, cooperation
among fellow workers, and customer service. As social identity theory
proposes, program graduates identify with the high performance of a
winning team. As a result, graduates who ruled out the option of going
back to school are motivated to continue their education by enrolling in
GED [General Education Diploma], community college, and citizenship
classes.

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Several characteristics make a social identity
important to a person:
a. Similarity.
b. Distinctiveness.
c. Status.
d. Uncertainty reduction.

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 GROUP PROPERTIES
1. Roles
A set of expected behavior patterns attributed to someone
occupying a given position in a social unit.
• Role Identity – Certain attitudes and behaviors consistent with a
role.
• Role Perception – An individual’s view of how he or she is
supposed to act in a given situation.
• Role Conflict – A situation in which an individual is confronted
by divergent role expectations.

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• Role Expectations – How others believe a person
should act in a given situation.
o Psychological Contract – An unwritten
agreement that sets out what management
expects from an employee and vice versa.

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2. Norms
Acceptable standards of behavior within a group
that are shared by the group’s members.
• Performance Norms – Providing explicit cues about
how hard members should work, what the level of output
should be, how to get the job done, what level of tardiness is
appropriate, and the like.

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• Appearance Norms – Dress codes, unspoken rules
about when to look busy,
• Social Arrangement Norms – With whom to eat
lunch, whether to form friendships on and off the job, and
• Resource Allocation Norms – Assignment of
difficult jobs, distribution of resources like pay or
equipment

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3. Status
A socially defined position or rank given to groups
or group members by others.
• What Determines Status?
1. The power a person wields over others.
2. A person’s ability to contribute to a group’s
goals.
3. An individual’s personal characteristics.

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4. Size
Smaller groups are faster at completing tasks than
larger ones, and individuals perform better in
smaller groups.
• Social Loafing – The tendency for individuals to
expend less effort when working collectively than when
working individually.

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5. Cohesiveness
The degree to which group members are attracted to each
other and are motivated to stay in the group.
• What can you do to encourage group cohesiveness?
a. Make the group smaller,
b. Encourage agreement with group goals,
c. Increase the time members spend together,

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d. Increase the group’s status and the perceived
difficulty of attaining membership,
e. Stimulate competition with other groups,
f. Give rewards to the group rather than to individual
members, and
g. Physically isolate the group.

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6. Diversity
The extent to which members of a group are similar
to, or different from, one another.

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 Re l a t i o n s h i p B e t we e n G r o u p
C o h e s ive n e s s , Pe r f o r m a n c e N o r m s , a n d
P r o d u c t iv i t y

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 INFLUENCE OF GROUP
ON EMPLOYEE BEHAVIOR
• Organizing work around intact groups
• Groups charged with selection, training and rewarding
• Enforce strong norms for behavior, with group
involvement in off-the-job behavior
• Distributing resources on a group rather than on
individual basis.
• Allowing and promoting intergroup rivalry so as to build
within group solidarity.

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 FACTORS INFLUENCING
GROUP EFFECTIVENESS
a. Task Interdependence
– how closely group members work together.
b. Outcome Interdependence
– whether and how group performance is rewarded.
c. Potency
– members belief on group effectiveness.

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 GROUP DYNAMICS

• Kurt Lewin, a German-American psychologist,

1947.
• The way that groups and individuals act and react to
changing circumstances.
• Group formation, structure, processes,
functioning
• Group influence on individual members, other
groups and the organization.

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 DETERMINANTS OF
GROUP DYNAMICS
a. External conditions of the group
b. Group member resources
c. Group structure – composition, size, roles,
leadership norms, cohesiveness and status
d. Group processes

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 INFORMAL GROUPS

• Created because of the restrictions of formal

group
• Refers to people in group at work, but these group are not
specified in the blueprint of the formal organization
• Natural groupings of people in the work
situation

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 TYPES OF INFORMAL
GROUPS
1. Mayo & Lombard Classification
a.Natural Group – have very little structure
b.Family Group – have regular members who
exert marked influence on the members behavior
c.Organized Group – has some acknowledged
leaders and a more consistent structure

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2. Sayles Classification
a. Apathetic Group – show indifferent attitudes
towards formal organizations consistently
b. Erratic Group – marked by rapid inflammability,
poor control, inconsistent behavior, centralized
autocratic leadership and union formation activities

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c. Strategic Group – have relatively antagonism, continuous
pressures, well planned and consistent grievance activity, high
degree of internal unity, sustained union participation and
usually good production records
d. Conservative Group – have usual cooperation, moderate
internal unity, limited pressures for highly specific objectives and
self assurance and activity-inactivity cycles in terms of union
activities and plant grievance procedure.

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 THEORIES OF GROUP
FORMATION
1. Propinquity Theory
o People affiliate with one another because of
spatial or geographical proximity
o Explains group formation based on nearness

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2. Homan’s Interaction Theory – George C. Homans
• Based on activities, interactions, and sentiments
• These three elements are directly related to one another.
o More activities more interactions and stronger sentiments;
o More interactions more shared activities and sentiments;
o More sentiments more shared activities and interactions.
• The major element is interaction.

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3. Balance Theory – Theodore M. Newcomb
• States that persons are attracted to one another
on the basis of similar attitudes toward
commonly relevant objects and goals.
• Individual X will interact and form a relationship
/ group with individual Y because of common
attitudes and values (Z).

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4. Exchange Theory – John W. Thibaut and Harold H. Kelley
• Based on reward-cost outcomes of interaction
• A minimum positive level (rewards greater than costs) of
an outcome must exist in order for attraction or affiliation
to take place.
• Rewards from interactions gratify needs.
• Costs incur anxiety, frustration, embarrassment or fatigue.
• Propinquity, interaction, and common attitudes all have
roles in exchange theory.

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CAUSES OF INFORMAL GROUP

1. Desire to socialize with others

2. Job specialization

3. Escapism

4. Hierarchical control and communication

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 INFORMAL GROUP NORMS

• Norms are the ―ought‖ of behavior.

• Prescriptions for acceptable behavior determined by the group.
• Norms will be strongly enforced by work groups if they;
 Aid in group survival and provision of benefits
 Simplify or make predictable the behavior expected
of group members

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 Help the group avoid embarrassing interpersonal
problems
 Express the central values or goals of the group and
clarify what is distinctive about the group’s identity

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 INFORMAL GROUP ROLES

• Role can best be defined as a position that has

expectations evolving from established norms.
1. The boundary spanner who acts as a facilitator and
bridge between units or groups which would not otherwise
interact.
2. The buffer who protects and filters negative or disappointing
news or information that might cause group members to be
upset and cause morale to suffer.

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3. The lobbyist who promotes and tells others how successful and
important the group is to outsiders.
4. The negotiator who is empowered by the group to act on its
behalf to get resources and make deals.
5. The spokesperson who is the voice of the group.

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 BENEFITS OF INFORMAL
GROUP

1. Makes for a more effective total system

2. Lightens the workload on management

3. Fills in gaps in a manager’s abilities

4. Provides a safety valve for employee emotions

5. Improves communication

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GROUP [COLLABORATIVE]
DECISION MAKING

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• 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.

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 STRENGTHS OF GROUP
DECISION MAKING
1. Groups generate more complete information and
knowledge.
2. They offer increased diversity of views.
3. Finally, groups lead to increased acceptance of a
solution.

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 WEAKNESSES OF GROUP
DECISION MAKING
1. There are conformity pressures.
2. Group discussion can be dominated by one or a few
members.
3. Finally, group decisions suffer from ambiguous
responsibility.

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 EFFECTIVENESS AND
EFFICIENCY
• Group decisions are generally more accurate than the
decisions of the average individual in a group, but less
accurate than the judgments of the most accurate.
• In terms of speed, individuals are superior.
• If creativity is important, groups tend to be more
effective.
• And if effectiveness means the degree of acceptance the
final solution achieves, the nod again goes to the group.

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• With few exceptions, group decision making consumes
more work hours than an individual tackling the same
problem alone.
• The exceptions tend to be the instances in which, to
achieve comparable quantities of diverse input, the single
decision maker must spend a great deal of time
reviewing files and talking to other people.

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 GROUPTHINK

• Phenomenon in which the norm for consensus overrides the realistic

appraisal of alternative courses of action.
• Groupthink relates to norms.
• It describes situations in which group pressures for
conformity deter the group from critically appraising
unusual, minority, or unpopular views.
• Groupthink is a disease that attacks many groups and can
dramatically hinder their performance.

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 GROUP SHIFT [OR]
GROUP POLARIZATION
• A change between a group’s decision and an individual decision
that a member within the group would make; the shift can be
toward either conservatism or greater risk but it generally is toward
a more extreme version of the group’s original position.
• Conservatives become more cautious, and more
aggressive types take on more risk.
• The group discussion tends to exaggerate the initial
position of the group.

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 GROUP DECISION
MAKING TECHNIQUES
1. Interacting Groups – Typical groups in which
members interact with each other face to face.
2. Brainstorming – An idea-generation process that
specifically encourages any and all alternatives while
withholding any criticism of those alternatives.

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3. Nominal Group Technique – Individual members
meet face to face to pool their judgments in a systematic but
independent fashion.
4. Electronic Meeting – A meeting in which members
interact on computers, allowing for anonymity of
comments and aggregation of votes.

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 1. INTERACTING GROUPS
• The most common form of group decision making takes
place in interacting groups.
• Members meet face to face and rely on both verbal and
nonverbal interaction to communicate.
• But as our discussion of groupthink demonstrated, interacting
groups often censor themselves and pressure individual
members toward conformity of opinion.
• Brainstorming, the nominal group technique, and electronic
meetings can reduce problems inherent in the traditional
interacting group.

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 2. BRAINSTORMING
• Brainstorming can overcome the pressures for
conformity that dampen creativity by encouraging any
and all alternatives while withholding criticism.
• In a typical brainstorming session, a half-dozen to a
dozen people sit around a table.
• The group leader states the problem in a clear manner so
all participants understand.
• Members then freewheel as many alternatives as they can
in a given length of time.
• To encourage members to ―think the unusual,‖ no
criticism is allowed, even of the most bizarre suggestions,
and all ideas are recorded for later discussion and analysis.

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 3. NOMINAL GROUP TECHNIQUE
• The nominal group technique restricts discussion or
interpersonal communication during the decision-making
process, hence the term nominal.
• Group members are all physically present, as in a traditional
committee meeting, but they operate independently.
• Specifically, a problem is presented and then the group takes
the following steps:
1. Before any discussion takes place, each member
independently writes down ideas on the problem.
2. After this silent period, each member presents one idea to
the group. No discussion takes place until all ideas have
been presented and recorded.

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 3. The group discusses the ideas for clarity and evaluates
them.
4. Each group member silently and independently rank-
orders the ideas. The idea with the highest aggregate
ranking determines the final decision.
• The chief advantage of the nominal group technique is
that it permits a group to meet formally but does not
restrict independent thinking, as does an interacting
group.
• Research generally shows nominal groups outperform
brainstorming groups.

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 4. ELECTRONIC MEETING
• The most recent approach to group decision making blends
the nominal group technique with sophisticated computer
technology.
• It’s called a computerassisted group, or an electronic
meeting.
• Once the required technology is in place, the concept is
simple.
• Up to 50 people sit around a horseshoe-shaped table, empty
except for a series of networked laptops.
• Issues are presented to them, and they type their responses
into their computers.

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• These individual but anonymous comments, as well as
aggregate votes, are displayed on a projection screen.
• This technique also allows people to be brutally honest
without penalty.
• And it’s fast because chitchat is eliminated, discussions don’t
digress, and many participants can ―talk‖ at once without
stepping on one another’s toes.
• They actually lead to decreased group effectiveness, require
more time to complete tasks, and result in reduced member
satisfaction compared with face-to-face groups.

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• Each of the four group-decision techniques has its own set
of strengths and weaknesses.
• The choice depends on what criteria you want to emphasize
and the cost–benefit trade-off.
• An interacting group is good for achieving commitment to a
solution, brainstorming develops group cohesiveness, the
nominal group technique is an inexpensive means for
generating a large number of ideas, and electronic meetings
minimize social pressures and conflicts.

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EVALUATING GROUP
EFFECTIVENESS

92
5. Dialectic Decision Method – A decision making method
in which the problem will be given to the members and explained.
• The group then divides themselves into sub-groups and
analyze each possible alternative solution to the problem
in detail.
• After analyzing pros and cons of each alternative, the
group then decide on the best suitable alternative for
the given problem.

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6. Delphi Method – A structured communication technique or
method, originally developed as a systematic, interactive forecasting
method which relies on a panel of experts.
• The experts answer questionnaires in two or more rounds.
• After each round, a facilitator or change agent provides an
anonymised summary of the experts' forecasts from the
previous round as well as the reasons they provided for
their judgments.
• Thus, experts are encouraged to revise their earlier
answers in light of the replies of other members of their
panel.
• It is believed that during this process the range of the
answers will decrease and the group will converge towards
the "correct" answer.

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 TEAMS

• A work team generates positive synergy through

coordinated effort. The individual efforts result in a
level of performance greater than the sum of those
individual inputs.
• A work group is a group that interacts primarily to
share information and make decisions to help each
member perform within his or her area of
responsibility.

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GROUPS VERSUS TEAMS

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TYPES OF TEAMS

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1. Problem-solving Teams – Groups of 5 to 12
employees from the same department who meet for a few
hours each week to discuss ways of improving quality,
efficiency, and the work environment.
2. Self-managed Work Teams – Groups of 10 to
15 people who take on responsibilities of their former
supervisors.

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3. Cross-functional Teams – Employees from about
the same hierarchical level, but from different work areas,
who come together to accomplish a task.
4. Virtual Teams – Teams that use computer technology
to tie together physically dispersed members in order to
achieve a common goal.

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 TEAM BUILDING

• Team building uses high-interaction group

activities to increase trust and openness among
team members, improve coordinative efforts, and
increase team performance.
• Here, we emphasize the intragroup level,
meaning organizational families (command
groups) as well as committees, project teams, self-
managed teams, and task groups.

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Problem Examining Giving &
Sensing Perceptual Receiving
Differences Feedback

Follow-up Building
Action Interactive
Skill

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INTERPERSONAL RELATIONS

• Interpersonal relationship refers to a strong

association among individuals working together in the
same organization.
• Employees working together ought to share a special
bond for them to deliver their level best.

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 INTERPERSONAL SKILLS

1. Verbal communication – What we say and how we say it.

2. Nonverbal communication – What we communicate without
words, body language is an example.
3. Listening skills – How we interpret both the verbal and non-
verbal messages sent by others.
4. Negotiation – Working with others to find a mutually agreeable
outcome.
5. Problem solving – Working with others to identify, define and
solve problems.

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6. Decision making – Exploring and analyzing options to make
sound decisions.
7. Assertiveness – Communicating our values, ideas, beliefs,
opinions, needs and wants freely.
8. Empathy – The ability to understand and share the feelings of
another.
9. Courtesy – The showing of politeness in one's attitude and
behavior towards others.

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 TRANSACTIONAL ANALY SIS
–ERIC BERNE

• A method of analyzing and understanding interpersonal

behavior.
• Ego states are a person’s way of thinking, feeling and behaving
at any time.
a. Parent Ego – rules, laws, do’s, don’ts, truths, tradition, how to,
teaching, et cetera
b. Adult Ego – rationality, estimation, evaluation, exploring, testing,
et cetera
c. Child Ego – seeing, hearing, touching, creating, wishing,
spontaneous, et cetera

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Complementary Transactions Crossed Transaction

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 JOHARI WINDOW
– JOSEPH LUFT AND HARRINGTON INGHAM

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 LIFE / PSYCHOLOGICAL
POSITION - T H O M A S A N T H O N Y H A R R I S

108
 STROKES
• In Transactional Analysis we call compliments and general
ways of giving recognition strokes.
• This name came from research which indicated that babies
require touching in order to survive and grow.
• It apparently makes no difference whether the touching
induces pain or pleasure - it is still important.
• On the whole we prefer to receive negative strokes than no
strokes at all, at least that way we know we exist and others
know we exist.

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 LIFE SCRIPT
 The script is a life plan, made when we are growing up.
 It is like having the script of a play in front of us - we read the lines
and decide what will happen in each act and how the play will end.
 The script is developed from our early decisions based upon our
life experience.
 Another way of getting to what script is may be to think about
what we believe will happen when we are in old age.

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 COMMUNICATION

• Communication – The transfer and understanding

of meaning.

• Communication Process – The steps between a

source and a receiver that result in the transfer and
understanding of meaning.

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COMMUNICATION PROCESS

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113
114
COMMUNICATION CHANNEL

• Formal Channels – Communication channels

established by an organization to transmit messages
related to the professional activities of members.
• Informal Channels – Communication channels that
are created spontaneously and that emerge as responses to
individual choices.

115
 DIRECTION OF
COMMUNICATION
a. Communication that flows from one level of a group or
organization to a lower level is downward communication .
b. Upward communication flows to a higher level in the group
or organization.
c. When communication takes place among members of the
same work group, members of work groups at the same level,
managers at the same level, or any other horizontally
equivalent workers, we describe it as lateral communication.

116
 INTERPERSONAL
COMMUNICATION
• Oral Communication — which include speeches, formal one-on-one
and group discussions, and the informal rumor mill or grapevine.
• Written Communication — which include memos, letters, fax
transmissions, e-mail, instant messaging, organizational periodicals, notices
placed on bulletin boards (including electronic ones), and any other device
that transmits via written words or symbols.
• Nonverbal Communication — which includes body movements, the
intonations or emphasis we give to words, facial expressions, and the
physical distance between the sender and receiver.

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 ORGANIZATIONAL
COMMUNICATION
• Formal Small-Group Networks

118
SMALL –GROUP NETWORKS
AND EFFECTIVE CRITERIA

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• Grapevine — An organization’s informal communication network.
• Electronic Communications
i. E-mail
ii. Instant Messaging
iii. Text Messaging
iv. Social Networking
v. Blogs
vi. Video Conferencing

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• Managing Information
i. Dealing with information overload
ii. Threats to information security

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CHOICE OF COMMUNICATION
CHANNEL
• Channel Richness – The amount of information that can be
transmitted during a communication episode.

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 BARRIERS TO EFFECTIVE
COMMUNICATION
a. Filtering – A sender’s purposely manipulating information so the
receiver will see it more favorably
b. Selective Perception – The receivers in the communication process
selectively see and hear based on their needs, motivations, experience,
background, and other personal characteristics
c. Information Overload – When the information we have to work
with exceeds our processing capacity
d. Emotions – You may interpret the same message differently when
you’re angry or distraught than when you’re happy.

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e. Language – Even when we’re communicating in the same
language, words mean different things to different people. Age and
context are two of the biggest factors that influence such differences.
f. Silence – It’s easy to ignore silence or lack of communication,
precisely because it is defined by the absence of information.
However, research suggests silence and withholding communication
are both common and problematic.
g. Communication Apprehension – Undue tension and
anxiety about oral communication, written communication, or both.
h. Lying – The final barrier to effective communication is outright
misrepresentation of information, or lying. People differ in their
definition of what constitutes a lie.

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 OVERCOMING
COMMUNICATION BARRIERS
1. Eliminating differences in perception: It’s the
responsibility of the interviewer to ensure that the interviewee
has command over the written and spoken language. There
should be proper Induction program so that the policies of
the company are clear to all the employees. There should be
proper trainings conducted for required employees. (for eg:
Voice and Accent training).
2. Use of Simple Language: Use of simple and clear words
should be emphasized. Use of ambiguous words and jargons
should be avoided.

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3. Reduction and elimination of noise levels: Noise is the
main communication barrier which must be overcome on
priority basis. It is essential to identify the source of noise
and then eliminate that source.
4. Active Listening: Listen attentively and carefully. There is a
difference between ―listening‖ and ―hearing‖. Active listening
means hearing with proper understanding of the message
that is heard.

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5. Emotional State: During communication one should make
effective use of body language. He/she should not show
their emotions while communication as the receiver might
misinterpret the message being delivered.
6. Simple Organizational Structure: The organizational
structure should not be complex. The number of hierarchical
levels should be optimum with ideal span of control within
the organization. Simpler the organizational structure, more
effective will be the communication.

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7. Avoid Information Overload: The managers
should know how to prioritize their work. They
should not overload themselves with the work.
8. Give Constructive Feedback: Avoid giving
negative feedback. Constructive feedback will lead to
effective communication between the superior and
subordinate.

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9. Proper Media Selection: The managers should properly
select the medium of communication. Simple messages
should be conveyed orally, like: face to face interaction or
meetings. Use of written means of communication should be
encouraged for delivering complex messages.
10. Flexibility in meeting the targets: For effective
communication in an organization the managers should
ensure that the individuals are meeting their targets timely
without skipping the formal channels of communication.

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 CONTROL

• Control – The process of monitoring, comparing, and correcting

work performance
• Control Process – A three-step process of measuring actual
performance, comparing actual performance against a standard,
and taking managerial action to correct deviations or inadequate
standards

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THE CONTROL PROCESS

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 ORGANIZATIONAL
PERFORMANCE MEASURES
a. Organizational Productivity – The amount of goods or
services produced divided by the inputs needed to generate that
output.
b. Organizational Effectiveness – A measure of how
appropriate organizational goals are and how well those goals are
being met.
c. Industry and Company Rankings – Rankings are
determined by specific performance measures, which are different for
each list. For instance, Fortune’s “Best Companies to Work For”.

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M A NA G E R I A L D E C I S I O N S I N C O N T RO L L I N G

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TYPES OF CONTROL

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1. Feed forward Control. The most desirable type of
control — feed forward control — prevents
problems because it takes place before the actual
activity. For instance, when McDonald’s opened its
first restaurant in Moscow, it sent company quality
control experts to help Russian farmers learn
techniques for growing high-quality potatoes and to
help bakers learn processes for baking high-quality
breads.

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2. Concurrent Control takes place while a work activity is in
progress. For instance, Nicholas Fox is director of business
product management at Google. He and his team keep a
watchful eye on one of Google’s most profitable businesses
— online ads. They watch ―the number of searches and
clicks, the rate at which users click on ads, the revenue this
generates — everything is tracked hour by hour, compared
with the data from a week earlier and charted.‖ If they see
something that’s not working particularly well, they fine-tune
it.

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3. Feedback Control. The control takes place after the activity is
done. For instance, the Denver Mint discovered the flawed
Wisconsin quarters using feedback control. The damage had
already occurred even though the organization corrected the
problem once it was discovered. And that’s the major problem
with this type of control. By the time a manager has the
information, the problems have already occurred, leading to
waste or damage. However, in many work areas, financial
being one example, feedback is the only viable type of
control.

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