ORGANIZATIONAL BEHAVIOUR

Module 4
COMMUNICATION
Sharing of information between two or more individuals or groups to reach a common understanding.
❖ Information is not enough for communication to take place.
❖ Main feature of communication is reaching on a common understanding.
❖ Reaching a common understanding does not mean that people must agree with each other.
❖ It means that people must have a relatively accurate idea of what a person or group is trying
to tell them.
FUNCTIONS OF COMMUNICATION
• PROVIDING KNOWLEDGE: About company goals, how to perform a job, standards for
acceptable behavior, needed changes and so on.
• MOTIVATING ORGANIZATIONAL MEMBERS: Motivating employees to achieve their goals.
Managers need to communicate with employees to assure them they can perform at high
level and will be rewarded for doing so.
• CONTROLLING AND COORDINATING GROUP ACTIVATES: It is essential for groups to control
their members behavior so that they perform their jobs in an acceptable way.
• EXPRESSING FEELING: Such as positive and negative moods, excitement and anger.

PROCESS OF COMMUNICATION

Sender: The individual, group or organization that need to share information with some other
individual, group or organization
Receiver: The individual, group or organization for which information is intended
Message: The information that a sender needs to share with other people
Encoding: Translating a message to symbols or language that the receiver can understand
Decoding: Interpreting or trying to make a sense of a sender’s message
Medium: The pathway through which an encoded message is transmitted to a receiver

CHANNELS OF COMMUNICATION
A communication channel is a type of media that is used to transfer a message from one person to
another. In business specifically, communication channels are the way information flows in the
organization within, and with other companies. Communication channels refer to the way this
information flows within the organization and with other organizations.
In this web known as communication, a manager becomes a link. Decisions and directions flow
upwards or downwards or sideways depending on the position of the manager in the communication
web.
For example, reports from lower level manager will flow upwards. A good manager has to inspire,
steer and organize his employees efficiently, and for all this, the tools in his possession are spoken
and written words.
For the flow of information and for a manager to handle his employees, it is important for an effectual
communication channel to be in place.
IMPORTANCE OF A COMMUNICATION CHANNEL
A breakdown in the communication channel leads to an inefficient flow of information. Employees
are unaware of what the company expects of them. They are uninformed of what is going on in the
company.
This will cause them to become suspicious of motives and any changes in the company. Also, without
effective communication, employees become department minded rather than company minded, and
this affects their decision making and productivity in the workplace.

Formal Communication Channel

A formal communication channel transmits information such as the goals, policies and procedures of
an organization. Messages in this type of communication channel follow a chain of command. This
means information flows from a manager to his subordinates and they in turn pass on the information
to the next level of staff.
An example of a formal communication channel is a company's newsletter, which gives employees as
well as the clients a clear idea of a company's goals and vision. It also includes the transfer of
information about memoranda, reports, directions, and scheduled meetings in the chain of
command.
A business plan, customer satisfaction survey, annual reports, employer's manual, review meetings
are all formal communication channels.
informal Communication Channel
Within a formal working environment, there always exists an informal communication network. The
strict hierarchical web of communication cannot function efficiently on its own and hence there exists
a communication channel outside of this web. While this type of communication channel may disrupt
the chain of command, a good manager needs to find the fine balance between the formal and
informal communication channel.
An example of an informal communication channel is lunchtime at the organization's
cafeteria/canteen. Here, in a relaxed atmosphere, discussions among employees are encouraged.
Also, managers walking around, adopting a hands-on approach to handling employee queries is an
example of an informal communication channel.
Quality circles, team work, different training programs are outside of the chain of command and so,
fall under the category of informal communication channels.
Horizontal Communication.
• When information flows between persons holding the same position in the in the organization, it
is called horizontal communication.
• The purpose of horizontal communication is to coordinate the activities of various departments
and divisions of the organization.
• In this communication, information flows between people holding same rank and status.
• Horizontal communication enjoys greater degree of informality.
• It is mostly done through oral media.
• Message of horizontal communication are usually free form distortion.
• It occurs in short line as it happens directly between sender and receiver.
Vertical Communication (Upward or Downward)
• When communication occurs between superior and subordinates, it is called vertical
communication.
• The purpose of vertical communication is to provide necessary orders, instructions, and directives
to the subordinates in a downward direction; and receiving suggestion, opinions
and feedback from the subordinates in upward direction.
• In this communication, information flows form superior to subordinates and vice-versa.
• It is more formal than horizontal communication.
• It is mostly done through written media.
• Message of vertical communication may suffer from distortion.
• It passes through a long line of communication.

Diagonal Communication
Diagonal communication is the sharing of information among different structural levels within a
business. This kind of communication flow is increasingly the norm in organizations (in the same way
that cross-functional teams are becoming more common), since it can maximize the efficiency of
information exchange. The shortest distance between two points is a straight line. Diagonal
communication routes are the straight lines that speed communications directly to their recipients,
now communication is necessary. Communications that zigzag along horizontal and vertical routes, on
the other hand, are vulnerable to the schedules and availability of the individuals who reside at each
level. It is also known as cross-functional communication.
Oral Communication
Oral communication could be said to be the most used form of communication. Whether it is to
present some important data to your colleagues or lead a boardroom meeting, these skills are vital.
We are constantly using words verbally to inform our subordinates of a decision, provide information,
and so on. This is done either by phone or face-to-face. The person on the receiving end would also
need to exercise much caution to ensure that he/she clearly understands what is being said. This
shows therefore that you would need to cultivate both your listening and speaking skills, as you would
have to carry out both roles in the workplace, with different people.
Written Communication
Writing is used when you must provide detailed information such as figures and facts, even while
giving a presentation. It is also generally used to send documents and other important material to
stakeholders which could then be stored for later use as it can be referred to easily as it is recorded.
Other important documents such as contracts, memos and minutes of meetings are also in written
form for this purpose. It can be seen in recent years, however, that verbal communication has been
replaced to a great extent by a faster form of written communication and that is email. You could also
use video conferencing and multiple way phone calls with several individuals simultaneously. Apart
from a few glitches that could occur, these methods of communication have helped organizations
come a long way.
Body Language
Although the most common methods of communication are carried out orally or in writing, when it
comes to management techniques, the power of non-verbal communication must never be
underestimated. Your smile, your gestures and several other body movements send out a message
to the people around you. You need to be mindful of this while dealing with your employees and
customers. Always remember to maintain eye contact. This would show that you are serious and
confident about what is being said.
COMMUNICATION NETWORK IN ORGANIZATIONS

Circle
Under this network two persons communicate with each other. Say Mr. ‘A’ sends message to Mr. ‘B’.
After receiving message Mr. ‘B’ communicates the feedback message to Mr. ‘A’. So, communication
takes the form of a circuit. Therefore, it is known as circuit network. It is like vertical network but in
circuit network ‘A’ and ‘B’ are not necessarily superior and subordinates.
Wheel
Here all subordinates receive commands from one superior. This is highly centralized type of
communication network where each subordinate receives commands or instructions from a single
authority or superior ‘A’ and wants the immediate feedback.
Y Channel
In the Y network, the flow of communication resembles an upside-down Y; information flows upward
and downward through the hierarchy, widening to encompass the number of employees reporting to
a supervisor.
All Channel / Star
Under star communication network all members of the group communicate with each other and
exchange information. This network is a must for group communication or where teamwork is
involved. This network channel of communication is open to all members of the group. The members
communicate with each other without hesitation.
Chain
In chain network, communication travels up and down through the hierarchy. Each person
communicates with only the person directly above or below in terms of reporting relationships. The
chain network rigidly follows the formal chain of command.
VERBAL COMMUNICATION
It is the sharing of information by means of words, either spoken or written (Oral or written)
For message that are encoded into words, the media can include face to face oral communication,
oral communication over telephone, written communication through letters, report, memo, email, fax
etc.
Oral Communication is a type of oral communication wherein the message is transmitted through the
spoken words. Here the sender gives words to his feelings, thoughts, ideas and opinions and expresses
them in the form of speeches, discussions, presentations, and conversations. The effectiveness of the
verbal communication depends on the tone of the speaker, clarity of speech, volume, speed, and the
quality of words used in the conversation. In the case of the verbal communication, the feedback is
immediate since there are a simultaneous transmission and receipt of the message by the sender and
receiver respectively.
The success of the verbal communication depends not only on the speaking ability of an individual but
also on the listening skills. How effectively an individual listen to the subject matter decides the
effectiveness of the communication. The verbal communication is applicable in both the formal and
informal kind of situations.
Non-Verbal Communication
The Non-Verbal Communication is the process of conveying meaning without the use of words either
written or spoken. In other words, any communication made between two or more persons using
facial expressions, hand movements, body language, postures, and gestures are called as non-verbal
communication.
The Non-Verbal Communication, unlike the verbal communication, helps in establishing and
maintaining the interpersonal relationships while the verbal’s only help in communicating the external
events. People use non-verbal to express emotions and interpersonal attitudes, conduct rituals such
as greetings and bring forward one’s personality. It helps them to exchange their emotional state of
mind. Also, it regulates the flow of communication, for example, an individual can give signals to
convey that he had finished speaking or else he wants to speak.
Sometimes, the non-verbal’s acts as a barrier to communicating effectively as the recipient could not
understand what the sender is trying to say and may interpret it wrongly.
Non-verbal communication includes facial expressions, the tone and pitch of the voice, gestures
displayed through body language (kinesics) and the physical distance between the communicators
(proxemics), Appearance, eye gaze.
BARRIERS TO COMMUNICATION
Physical Barriers: A communication is a two-way process, distance between the sender and the
receiver of the message is an important barrier to communication. Noise and environmental factors
also block communication.
Personal Barriers: Personal factors like difference in judgment, social values, inferiority complex, bias,
attitude, pressure of time, inability to communicate, etc. widen the psychological distance between
the communicator and the communicate. Credibility gap i.e., inconsistency between what one says
and what one does, also, acts as a barrier to communication.
Semantic or Language Barriers: Semantic is the science of meaning. The same words and symbols
carry different meanings to different people. Difficulties in communication arise when the sender and
the receiver of the message use words or symbols in different senses. The meaning intended by the
sender may be quite different from the meaning followed by the receiver. People interpret the
message in terms of their own behaviour and experience. Sometimes, the language used by the sender
may not at all be followed by the receiver.
Status Barriers (Superior-Subordinate Relationship): Status or position in the hierarchy of an
organization is one of the fundamental barriers that obstructs free flow of information. A superior
may give only selected information to his subordinates to maintain status differences. Subordinates,
usually, tend to convey only those things which the superiors would appreciate.
This creates distortion in upward communication. Such selective communication is also known as
filtering. Sometimes, “the superior feels that he cannot fully admit to his subordinates those problems,
conditions or results which may affect adversely on his ability and judgment. To do so would
undermine his position as a superior being in the formal organization.” This causes distortion in
downward communication. A subordinate may also feel reluctant to report his shortcomings or may
not seek clarification on instructions which are subject to different interpretations for fear of loss of
prestige in the eyes of the superior.
 Organizational Structure Barriers: Effective communication largely depends upon sound
organizational structure. If the structure is complex involving several layers of management, the
breakdown or distortion in communication wall arise. It is an established fact that every layer cuts off
a bit of information. In the words of W.C. Bennis, “Communication gets distorted particularly as it goes
up the hierarchy.”
Moreover, information travelling through formal structure introduces rigidity and causes-delay
because of long lines of communication. Similarly, lack of instructions for further conveying
information to the subordinates and heavy pressure of work at certain levels of authority also act as
barriers to effective communication.
Emotional Attitude Barriers: may also arise due to emotional attitude because when emotions are
strong, it is difficult to know the frame of mind of another person or group. Emotional attitudes of
both, the communicator as well as the communicate, obstruct free flow of transmission and
understanding of messages.
Barriers Due to Lack of Mutual Trust: Communication means sharing of ideas in common. “When we
communicate, we are trying to establish a commonness.” Thus, one will freely transfer information
and understanding with another only when there is mutual trust between the two. When there is a
lack of mutual trust between the communicator and the communicate, the message is not followed.
Credibility gaps, i.e., inconsistency in saying and doing, also causes lack of mutual trust which acts as
a basic obstacle to effective communication.
Resistance to Change: It is a general tendency of human beings to stick to old and customary patterns
of life. They may resist change to maintain status quo. Thus, when new ideas are being communicated
to introduce a change, it is likely to be overlooked or even opposed. This resistance to change creates
an important obstacle to effective communication.
How to make communication effective…?

1. Use of simple and common language

2. Regulating the flow of communication
3. Proper feedback
4. Repetition
5. Control over emotions
6. Mutual trust and faith
7. Listening carefully
LEADERSHIP

Definitions
“Leadership is the activity of influencing people to strive willingly for group objective” - George K Terry
“Leadership is the art or process influencing people so that they will strive willingly and enthusiastically
towards the achievement of group goals” - Koontz
“Leadership is not making friends and influencing people, that is salesmanship. Leadership is the lifting
of man’s vision to higher sights, the raising of man’s personality beyond its normal limitation” - Peter
F Drucker
The Nature and Characteristics of leadership in Organizational behaviour is mentioned below
1. Leadership implies the existence of followers: We appraise the qualities of leadership by studying
his followers. In an organization leader are also followers for e.g.: - Supervisor works under a
branch head. Thus, in a formal organization a leader must be able to be both a leader as well as a
follower and be able to relate himself both upward and downward.
2. Leadership involves a community of interest between the leader and his followers: In other
words, the objectives of both the leader and his men are one and the same. If the leader strives
for one purpose and his team of workers work for some other purpose, it is no leadership.
3. Leadership involves an unequal distribution of authority among leaders and group
members: Leaders can direct some of the activities of group members, i.e., the group members
are completed or are willing to obey most of the leader's directions. The group members cannot
similarly direct the leader's activities, though they will obviously affect those activities in a few
ways.
4. Leadership is a process of Influence: Leadership implies that leaders can influence their followers
or subordinates in addition to being able to give their followers or subordinates legitimate
directions.
5. Leadership is the function of stimulation: Leadership is the function of motivating people to strive
willingly to attain organizational objectives. A successful leader allows his subordinates (followers)
to have their individual goals set up by themselves in such a way that they do not conflict with the
organizational objectives.
6. A leader must be exemplary: In the words of George Terry - "A Leader shows the way by his own
example. He is not a pusher, he pulls rather than pushes".
A leader must set an ideal before his followers. He must stimulate his followers for hard and sincere
work by his personal behaviour. In other words, a leader must set exemplary standard before his
followers.
7. A Leader ensures absolute justice: A leader must be objective and impartial. He should not follow
unfair practices like favouritism and nepotism. He must show fair play and absolute justice in all
his decisions and actions.
LEADERSHIP FUNCTIONS / FUNCTIONS OF A LEADER
1. To take the initiative: A leader initiates all the measures that are necessary for the purpose of
ensuring the health and progress of the undertaking in a competitive economy. He should not
expect others to guide or direct him. He should lay down the aims and objectives, commence their
implementation and see that the goals are achieved according the predetermined targets.
2. He identifies group goals: A leader must always help the group identify and attain their goals. Thus,
a leader is a goal setter.
3. He represents the organization: A leader represents the organization and its purpose, ideals,
philosophy and problems to those working for it and to the outside world .In other words, leaders
is true representative of the entire organization.
4. He acts as an arbitrator: When groups experience internal difference, whether based on emotional
or intellectual clashes, a leader can often resolve the differences. He acts as an arbitrator to
prevent serious group difference.
5. To assign reasons for his action: It is a delicate task of leaders to assigns reason to his every
command. He must instruct things in such a way that they are intelligible to all concerned and their
co-operation is readily forthcoming.
6. To interpret: He interprets the objectives of the organization and the means to be followed to
achieve them; he appraises his followers, convinces them, and creates confidence among them.
7. To guide and direct: It is the primary function of the leader to guide and direct the organization.
He should issue the necessary instructions and see that they are properly communicated.
8. To encourage team work: A leader must try to win the confidence of his subordinates. He must
act like the capital of a team.
9. He manages the organization: Last, but not the least, he administers the undertaking by arranging
for the forecast, planning, organization, direction, coordination and control of its activities.
LEADERSHIP Skills
The leader is expected to play many roles and therefore, must be qualified to guide others to
organizational achievement. Although no set of absolute traits or skills may be identified, the
individuals who possess abilities to lead others must have certain attributes to help them in
performing their leadership rolls. In a broad way the skills which are necessary for an industrial leader
may be summarized under four heads: -
a. Human skill
b. Conceptual skill
c. Technical skill and
d. Personal skill.
1. Human Skill
A good leader is considerate towards his followers because his success largely depends on the co-
operation of his followers. He approaches various problems in terms of people involved more than in
terms of technical aspects involved. A leader should understand human behaviour. He should know
people; know their needs, sentiments, emotions, as also their actions and reactions to decisions, their
motivations etc.
Thus, a successful leader possesses the human relations attitude. He always tries to develop social
understanding with other people. The human skill involves the following: -
a. Empathy: A leader should be able to look at things objectively. He should respect the rights, belief
and sentiments of others. He should equip himself to meet the challenges emanating from the
actions and reactions of other people. The leader should be empathetic towards his followers so
that he can carefully judge their strengths, weakness, and ambitions and give them the attention
they deserve.
b. Objectivity: A good leader is fair and objective in dealing with subordinates. He must be free from
bias and prejudice while becoming emotionally involved with the followers. His approach to any
issue or problem should be objective and not based on any pressure, prejudice or preconceived
notions. Objectivity is a vital aspect of analytical decision making. Honesty, fair play, justice and
integrity of character are expected of any good leader.
c. Communication Skill: A leader should have the ability to persuade, to inform, stimulate, direct and
convince his subordinates. To achieve this, a leader should have good communication skill. Good
communications seem to find all responsibilities easier to perform because they relate to others
more easily and can better utilize the available resources.
d. Teaching Skill: A leader should have the ability to demonstrate how to accomplish a task.
e. Social Skill: A leader should understand his followers. He should be helpful, sympathetic and
friendly. He should have the ability to win his followers confidence and loyalty.
2. Conceptual Skill
In the words of Chester Barnard -"the essential aspect of the executive process is the sensing of the
organization as a whole and the total situation relevant to it". Conceptual skills include -
a. The understanding of the organization behaviour,
b. Understanding the competitors of the firm, and
c. Knowing the financial status of the firm.
A leader should have the ability to look at the enterprise, to recognize that the various functions of an
organization depend upon one another and are interrelated, that changes in one affect all others. The
leader should have skill to run the firm in such a way that overall performance of the firm in the long
run will be sound.
3. Technical Skill
A leader should have a thorough knowledge of, and competence in, the principles, procedures and
operations of a job. Technical skill involves specialized knowledge, analytical skill and a facility in the
use of the tools and techniques of a specific discipline. Technical competence is an essential quality of
leadership.
4. Personal Skill
The most important task of the leader is to get the best from others. This is possible only if he
possesses certain qualities. These personal skills include-
a. Intelligence: Intellectual capacity is an essential quality of leadership. Leaders generally have
somewhat higher level of intelligence than the average of their followers.
b. Emotional Maturity: A leader should act with self-coincidence, avoid anger, take decisions on a
rational basis and think clearly and maturely. A leader should also have high frustration tolerance.
According to Koontz and O'Donnell - "Leaders can not afford to become panicky, unsure of
themselves in the face of conflicting forces, doubtful of their principles when challenged, or
amenable to influence".
c. Personal Motivation: This involves the creation of enthusiasm within the leader himself to get a
job done. It is only through enthusiasm that one can achieve what one wants. Leaders have
relatively intense achievement type motivational drive.
He should work hard more for the satisfaction of inner drives than for extrinsic material rewards.
d. Integrity: In the words of F.W Taylor - "integrity is the straight forward honesty of purpose which
makes a man truthful, not only to others but to himself; which makes a man high-minded, and
gives him high aspirations and high ideals".
e. Flexibility of Mind: A leader must be prepared to accommodate others view points and modify his
decisions, if need be. A leader should have a flexible mind, so that he may change in obedience to
the change in circumstances. Thomas Carle has said - "A foolish consistency is the hobgoblin of a
little mind".
In sum, a leader must have a dynamic personality, intellectual attainment, amiable dis position,
unassuming temperament and knowledge of how to deal with his followers.
Difference between Leadership and Management: Leadership is different from management. The
main differences between these two terms are: -
1. A manager is required to plan, organize, direct and control. But a leader is one who gets others to
follow him.
2. A manager depends on his authority. But a leader depends on his confidence and good will. He
inspires enthusiasm.
3. Management is concerned with the formulation of broad policies to guide the operations of an
enterprise. But leadership is concerned with the initiation of action for the accomplishment of the
goals.
4. An individual is a leader in the true sense if he is accepted as a leader by the group. A manager is
appointed, and he derives his authority by virtue of his office.
5. Management is associated with the organized structure. But leadership may be associated with
unorganised groups.
LEADERSHIP STYLES / TYPES
Autocratic or Task Management Leadership
The autocratic Leader gives order which he insists shall be obeyed. He determines polices for the group
without consulting them, and does not give detailed information about future, but simply tells the
group what steps they must take. In other words, an autocratic leader is one who centralizes the
authority in himself and does not delegate authority to his subordinates. He is dictatorial by nature,
and has no regard for the subordinates. He drives himself and his subordinates with one thought
uppermost in his mind- action must produce results. An autocratic close the entire planning and cells
upon his subordinates to execute what he has planned. An Autocratic leader operates on the following
assumptions: -
a. An average human being has inherent dislikes of work and will avoid it if he can.
b. His assumption is that if his subordinate was intelligent enough, he would not be in that
subordinate position.
c. He assumes that unintelligent subordinates are immature, unreliable and irresponsible persons.
Therefore, they should be constantly watched in the course of their work.
d. As he has no regard for his subordinates, he gets the work done by his subordinates through
negative motivation i.e. through threats of penalty and punishment.
 Thus, under this style all decision-making power is centralized in the leader. The autocratic leader
stresses his prerogative to decide and order and subordinate’s obligation to do what they are told to
carry out. He does not give subordinates the freedom to influence his behaviour.
Types of autocratic leadership
Strict autocratic leaders: A strict autocratic relies on negative influence and gives orders which the
subordinates must accept. He may also use his power to disperse rewards to his group.
Benevolent Autocrat: The benevolent is affected in getting high productivity in many situations and
he can develop effective human relationship. His motivational style is usually positive.
Manipulative Autocrat: A manipulative autocratic leader is one who makes the subordinates feel that
they are participating in decision making process even though he has already taken the decision.
Participative or Democratic Leadership
A democratic leader is one who consults and invites his subordinates to participate in the decision-
making process. He gives orders only after consulting the group; sees to it that polices are worked out
in group decisions and with the acceptance of group. The manager largely avoids the use of power to
get a job done. He behaves that a desired organizational behaviour can be obtained if employees'
needs and wants are satisfied. Therefore, he not only issues orders but interprets them and sees to it
that the employees have the necessary skill and tool to carry out their assignments. He assigns a fair
work lead to his personal and recognizes the job that is well done; there is a team approach to the
attainment of organizational goals. He recognizes human value for greater concern for his
subordinates. A participative leader operates on the following assumptions: -
a. Subordinates can do work and assuming the responsibility if they are given opportunities and
incentives.
b. Subordinates are supervised, guided and aided rather then threatened and commanded to work.
c. Mistakes are not viewed seriously. The assumption is that disciplinary action breeds discontent
and frustration among employees and creates an unhealthy work environment.
Laissez Faire or Free-rein Leadership
A free-rein leader does not lead but leaves the group entirely to itself. The leader avoids using power
and interest the decision-making authority to his subordinates. He does not direct his subordinates
and there is complete freedom for the subordinates. Group of members work themselves and provide
their own motivation. The manager exits as a contact man with outsiders to bring for his group the
information and resources it needs to accomplish its job. A free-rain leadership operates on the
following assumption: -
a. He follows the rule of minimum exposure to accountability.
b. He relieves himself of responsibilities and is ready to blame his subordinates if something goes
wrong.
c. He has no clear idea of the goals to be attained.
d. He is more security conscious than status conscious.
This mode of direction can produce good and quick results if the subordinates are highly educated
and brilliant people who have a will to go ahead and perform their responsibility.
Paternalistic Leadership
Under this type of leadership, the leader assumes that his function is fatherly. His attitude is that of
treating the relationship between the leader and his groups that of family with the leader as the head
of the family. The leader works to help to work to help, guide, protect and keep his followers happily
working together as members of a family. He provides them with good working condition, fringe
benefits and employee services. It is said that employees under such leadership well work harder out
of gratitude.
LEADERSHIP THEORIES
1. "Great Man" Theories
According to this point of view, great leaders are simply born with the necessary internal
characteristics such as charisma, confidence, intelligence, and social skills that make them natural-
born leaders.
Great man theories assume that the capacity for leadership is inherent – that great leaders are born,
not made. These theories often portray great leaders as heroic, mythic and destined to rise to
leadership when needed. The term "Great Man" was used because, at the time, leadership was
thought of primarily as a male quality, especially in terms of military leadership. Such theories suggest
that people cannot really learn how to become strong leaders. It's either something you are born with
or born without. It is very much a nature approach to explaining leadership.
This theory sees great leaders as those who are destined by birth to become a leader. Furthermore,
the belief was that great leaders will rise when confronted with the appropriate situation. The theory
was popularized by Thomas Carlyle, a writer and teacher. Just like him, the Great Man theory was
inspired by the study of influential heroes. In his book "On Heroes, Hero-Worship, and the Heroic in
History", he compared a wide array of heroes.
In 1860, Herbert Spencer, an English philosopher disputed the great man theory by affirming that
these heroes are simply the product of their times and their actions the results of social conditions.
2. Trait Theories
Similar in some ways to Great Man theories, trait theories assume that people inherit certain qualities
and traits that make them better suited to leadership. Trait theories often identify a personality or
behavioural characteristics shared by leaders. For example, traits like extroversion, self-confidence,
and courage are all traits that could potentially be linked to great leaders.
If traits are key features of leadership, then how do we explain people who possess those qualities but
are not leaders? This question is one of the difficulties in using trait theories to explain leadership.
There are plenty of people who possess the personality traits associated with leadership, yet many of
these people never seek out positions of leadership. There are also people who lack some of the key
traits often associated with effective leadership yet still excel at leading groups.
Many studies have analysed the traits among existing leaders in the hope of uncovering those
responsible for one’s leadership abilities! In vain, the only characteristics that were identified among
these individuals were those that were slightly taller and slightly more intelligent!
3. Contingency Theories
Contingency theories of leadership focus on variables related to the environment that might
determine which style of leadership is best suited for the situation. According to this theory,
no leadership style is best in all situations.
Leadership researchers White and Hodgson suggest that truly effective leadership is not just about
the qualities of the leader, it is about striking the right balance between behaviours, needs, and
context. Good leaders can assess the needs of their followers, take stock of the situation, and then
adjust their behaviours accordingly. Success depends on several variables including the leadership
style, qualities of the followers and aspects of the situation.
For example, in a situation where the leader is the most knowledgeable and experienced member of
a group, an authoritarian style might be most appropriate. In other instances where group members
are skilled experts, a democratic style would be more effective.
4. Managerial Grid Theory
The treatment of task orientation and people orientation as two independent dimensions was a major
step in leadership studies. Robert Blake and Jane Mouton (1960s) proposed a graphic portrayal of
leadership styles through a managerial grid (sometimes called leadership grid). The grid depicted two
dimensions of leader behavior, concern for people (accommodating people’s needs and giving them
priority) on y-axis and concern for production (keeping tight schedules) on x-axis, with each dimension
ranging from low (1) to high (9), thus creating 81 different positions in which the leader’s style may
fall.
The five resulting leadership styles are as follows:
1. Impoverished Management (1, 1): Managers with
this approach are low on both the dimensions and
exercise minimum effort to get the work done from
subordinates. The leader has low concern for
employee satisfaction and work deadlines and as a
result disharmony and disorganization prevail within
the organization. The leaders are termed ineffective
wherein their action is merely aimed at preserving
job and seniority.
2. Task management (9, 1): Also called dictatorial or
perish style. Here leaders are more concerned about production and have less concern for people.
The style is based on theory X of McGregor. The employees’ needs are not taken care of and they
are simply a means to an end. The leader believes that efficiency can result only through proper
organization of work systems and through elimination of people wherever possible. Such a style
can increase the output of organization in short run but due to the strict policies and procedures,
high labour turnover is inevitable.
3. Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries to
maintain a balance between goals of company and the needs of people. The leader does not push
the boundaries of achievement resulting in average performance for organization. Here neither
employee nor production needs are fully met.
4. Country Club (1, 9): This is a collegial style characterized by low task and high people orientation
where the leader gives thoughtful attention to the needs of people thus providing them with a
friendly and comfortable environment. The leader feels that such a treatment with employees will
lead to self-motivation and will find people working hard on their own. However, a low focus on
tasks can hamper production and lead to questionable results.
5. Team Management (9, 9): Characterized by high people and task focus, the style is based on the
theory Y of McGregor and has been termed as most effective style according to Blake and Mouton.
The leader feels that empowerment, commitment, trust, and respect are the key elements in
creating a team atmosphere which will automatically result in high employee satisfaction and
production.
5. Participative Theories
Participative leadership theories suggest that the ideal leadership style is one that takes the input of
others into account. These leaders encourage participation and contributions from group members
and help group members feel more relevant and committed to the decision-making process. In
participative theories, however, the leader retains the right to allow the input of others.
6. Management Theories
Management theories, also known as transactional theories, focus on the role of supervision,
organization and group performance. These theories base leadership on a system of rewards and
punishments. Managerial theories are often used in business; when employees are successful, they
are rewarded; when they fail, they are reprimanded or punished.
7. Relationship Theories
Relationship theories, also known as transformational theories, focus upon the connections formed
between leaders and followers. Transformational leaders motivate and inspire people by helping
group members see the importance and higher good of the task. These leaders are focused on the
performance of group members, but also want each person to fulfil his or her potential. Leaders with
this style often have high ethical and moral standards.
Creativity and group decision making
• Creativity means creating something new. In the context of business, it means creation of new
ideas, new method or new product/service.
• Creativity is the “cognitive process of developing an idea, concept, commodity, or discovery
that is viewed as novel by its creator or a target audience.” — Max H. Bazerman.
• Creativity in decision making is the generation of a new idea or unique approach that solves a
problem.
• Organizations should create an environment that supports & encourages Creativity.
Process of creativity in decision making
SENSING (Problem Finding)
• Identifies the problem
• Analyse its importance
• Curious to solve the problem
• Curiosity leads to development of ideas.
PREPARATION
• Collects information and formulate hypothesis
• May refer to past experiences, researches & Innovations.
INCUBATION
• Moves from conscious deliberation to sub-conscious deliberation.
• Makes decisions in sub-conscious mind.
• Generates new ideas.
ILLUMINATION
• List out all possible solutions.
• Some are rejected and some are accepted for further analysis.
VERIFICATION
• Testing the ideas.
• If found feasible, applying to solve the problem.
DECISION MAKING
Decision making is an integral part of every aspect of life. This also applies to organizations. It is one
of the key factors that pave the way for its success or failure. Every manager is required to execute
decisions at various levels of the management cycle beginning from planning to control. It is the
effectiveness and quality of those decisions that determine how successful a manager is.
Without decision making, different managerial functions such as planning, organizing, directing,
controlling, and staffing cannot be conducted. Decision making is a cumulative and consultative
process and should support organizational growth.
The main function of every management is making the right decisions and seeing them through to
their logical end through execution. Every management decision also affects employee morale and
performance, ultimately influencing the overall business performance. The importance of decision
making in management is immense, as the business policy and strategies adopted ultimately affects
the company's output and performance.
Types of Decisions
Decision making and problem solving is a continuous process of analysing and considering various
alternatives in various situations, choosing the most appropriate course of action and following them
up with the necessary actions.
There are two basic types of decisions −
• Programmed Decisions
• Non-programmed Decisions
Programmed Decisions
Programmed decisions are those that are made using standard operating procedures or other well-
defined methods. They are situations that are routine and occur frequently.
Organizations come up with specific ways to handle them. Programmed decisions are effective for
day-to-day issues such as requests for leave or permissions by employees. Once the decision is taken,
the program specifies processes or procedures to be followed when similar situation arises. Creating
such programmed routines lead to the formulation of rules, procedures and policies, which becomes
a standard in the organization.
Non-programmed Decisions
Non-programmed decisions are unique and one-shot decisions. They are not as structured as
programmed decisions and are usually tackled through judgment and creativity.
They are innovative, as newly created or unexpected problems are settled through unconventional
and novel solutions.
Factors affecting decision making
Prejudice
Prejudice and bias are introduced in our decisions by our perceptual processes and may cause us to
make ineffective decisions. First, perception is highly selective, which means that we only accept what
we want to accept and hence only such type of information filters down to our senses.
Second, perception is highly subjective, meaning that information gets distorted in order to be
consistent with our pre-established beliefs, attitudes and values.
For example, a preconceived idea that a given person or an organization is honest or deceptive, good
or poor source of information, late or prompt on delivery, and so on, can have a considerable effect
on the objective ability of the decision maker and the quality of the decision.
Information Inputs
It is very important to have adequate and accurate information about the situation for decision
making, otherwise the quality of the decision will suffer. It must be recognized, however, that on
individual has certain mental constraints, which limit the amount of information that he can
adequately handle. Less information is as dangerous as too much information. Some highly
authoritative individuals do make decisions based on comparatively less information when compared
to more conservative decision makers.
Attitudes About Risk and Uncertainty
These attitudes are developed in a person, partly due to certain personal characteristics and partly
due to organizational characteristics. If the organizational policy is such that it penalizes losses more
than its rewards gains, then the decision maker would tend to avoid the alternatives that have some
chances of failure.
Thus, a manager may avoid a potentially good opportunity if there is a slight chance of a loss. The
personal characteristics of a decision maker regarding his attitudes towards risk taking affect the
success of the decision. The risk-taking attitude is influenced by the following variables:
A. Intelligence of the decision-maker: Higher intelligence generally results in highly conservative
attitudes and highly conservative decision makers take low risks. There are others who are more
willing to take calculated risks if the potential rewards are larger and there is some chance of success.
B. Expectation of the decision-maker: People with high expectations are generally highly optimistic
in nature and are willing to make decisions even with less information. The decision makers with low
expectations of success will require more and more information to decide upon a course of action.
C. Time constraints: As the complexity of the personal habits of the decision maker and the complexity
of the decision variables increase, so does the time required to make a rational decision. Even though
there are certain individuals who work best under time pressures and may outperform others under
severe time constraints, most people, require lime to gather all the available information for
evaluation purposes.
Social and Cultural Influences
The social and group norms exert considerable influence on the style of the decision-maker. Ebert and
Mitchell define a social norm to be an evaluating scale designating on acceptable latitude and an
objectionable latitude for behaviour activity, events, beliefs or any object of concern to members of a
social unit. In other words, social norm is the standard and accepted way of making judgements.’
Similarly, cultural upbringing and various cultural dimensions have a profound impact on the decision-
making style of an individual. For example, in the Japanese organizational system, a decision maker
arrives at a decision in consensus with others. This style is culturally oriented and makes
implementation of the decision much easier since everybody participates in the decision-making
process. In America, on the contrary, the decision-making style is generally individualistic with the help
of decision models and quantitative techniques.
Personal Habits
Personal habits of the decision-maker, formed through social environmental influences and personal
perceptual processes must be studied in order to predict his decision-making style. Some people stick
to their decisions even when these decisions are not optimal. For example, Hitler found himself bound
by his own decisions. Once he decided to attack Russia, there was no going back even when he realized
that the decision was not the right one.
Some people cannot admit that they were wrong, and they continue with their decisions even ignoring
evidence which indicates that a change is necessary. Some decision-makers shift the blame for failure
on outside factors rather than their own mistakes. These personal habits have great impact on
organizational operations and effectiveness.
Past experiences
Past experiences can impact future decision making. Past decisions influence the decisions people
make in the future. It stands to reason that when something positive results from a decision, people
are more likely to decide in a similar way, given a similar situation. On the other hand, people tend to
avoid repeating past mistakes. This is significant to the extent that future decisions made based on
past experiences are not necessarily the best decisions. In financial decision making, highly successful
people do not make investment decisions based on past sunk outcomes, rather by examining choices
with no regard for past experiences.
GROUP DECISION MAKING
Group decision making is a kind of participatory process in which multiple individuals acting
collectively, analyse problems or situations, evaluate alternative ways of action, and select alternative
solutions. The number of people involved in group decision-making 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.
• Group decision-making (also known as collaborative decision-making) is a situation faced
when individuals collectively make a choice from the alternatives before them.
• The decisions made by groups are often different from those made by individuals.
• groups tend to make decisions that are more extreme than those of its individual members
Methods for Effective Group Decision Making Techniques
There are different types of group decision-making techniques and these techniques are used to
create, classify as well as prioritize the product requirements. Below are the different methods used
in reaching a group decision?

Unanimity: This decision is achieved when everyone in the team agrees on a single action. An example
of reaching unanimity is the Delphi technique wherein a selective group of experts answer
questionnaires and give feedback on the responses of each round of gathering requirements.
Majority: The decision is obtained from more than 50% of the team members. To avoid a tie, it is
important to have an uneven number of participants during the group decision making.
Plurality: Plurality is achieved when the largest block of the group decides when there is no majority
during the voting. This is used when there are more than two options being nominated upon.
Dictatorship: Dictatorship is when only one individual – usually the project leader – makes the
decision for the entire group.
These types of group decision-making techniques can also be applied to the group creativity
techniques in order to identify and determine the product requirements.
THE VROOM - YETTON MODEL
• A model for deciding whether to use a group for decision making purpose proposed by Vroom
and Yetton.
• They divided the decision-making process into 5 styles ranging from total autocratic to total
participative.
• Any of these can be selected depends upon the other situational factors like quality and
acceptance criteria.
The following codes represent the five decision-making processes that are described by the model
Autocratic (A1) Leader use the information that he already must make the decision, without requiring
any further input from his team.
Autocratic (A2) Leader consult his team to obtain specific information that he needs, and then he
makes the final decision.
Consultative (C1) Leader inform his team of the situation and ask for member’s opinions individually,
but he don't bring the group together for a discussion. He makes the final decision.
Consultative (C2) Leader get his team together for a group discussion about the issue and to seek their
suggestions, but he still make the final decision by himself.
Collaborative (G2) Leader work with his team to reach a group consensus. his role is mostly facilitative,
and he help team members to reach a decision that they all agree on. This is a participative style of
decision making