Second Semester

BBA LLB Paper Code: BBA LLB 116

Organizational Behaviour

Unit-1: The Concept of Organizational Behaviour

a. Disciplines Contributing to the Field of Organizational Behaviour
b. The OB Model
c. Challenges and Opportunities for OB
d. Diversity in Organizations

Unit-II: Organizational Culture and Climate

a. Managerial Communication
b. Attitudes and Values
c. Emotions and mood

Unit-III: Behavioral Dynamics

a. Perceptions
b. Learning
c. Personality
d. Motivation
e. Stress and its Management

Unit-IV: Group Dynamics and Work Teams

a. Creating Effective Teams
b. Types of Teams
c. Stages of Group Development
d. Group Think
e. Group Shift Social Loafing
f. Group Decision Making Techniques
g. Power and Politics
h. Change Management
 UNIT-1

Introduction of Organizational Behavior

Organizational Behavior is the study and application of knowledge about how people behave
individually and in groups.

The main purpose of OB is to build better relationships by

• Achieving Individual objectives

• Achieving group objectives
• Achieving Organizational Objectives
• Achieving Social Objectives

Organization is the backbone of management. No management can perform its functions smoothly
without an efficient organization.

Nature of OB

1) A separate field of study

2) An applied science
3) A total system Approach
4) Goal Oriented towards organizational objectives
5) An Interdisciplinary Approach
6) Normative Science
7) Humanistic and optimistic Approach
Contributing Disciplines to the field of OB

Following are the contributing disciplines of OB:

• Psychology – it studies the process of human behaviour such as learning, thinking, memory,
sensation, emotions, feelings, perception and personality.

• Sociology - it is an academic discipline which studies patterned shared behaviour of human beings,
the way in which people acts towards one another.

• Social psychology - it is the psychology branch which studies the individual in societal context.

• Anthropology. It combines two words: Greek word “Anthro” means man and a noun ending “logy”
means science. It studies civilization, forms of cultures and their impact on individuals and groups.

• Economics - it is that branch which is concerned with consumption, production and transfer of
wealth.

• Political – it is related to the public affairs of the government of a country.

The OB Model

Autocratic Model

The autocratic model depends on power. Managers see authority as the only means to get the things
done and employees are expected to follow orders. So it results in the higher dependence on the boss.

The Custodial Model

To overcome the shortcomings of autocratic model, it came into existence. This model is reward
based. More emphasis is on economic rewards and benefits to motivate employees.

The Supportive Model

It works in the public sector organization which is dependent on effective leadership. Here, it is
assumed that workers are self directed and creative. Importance in this model is given to
psychological needs, self esteem, job satisfaction and friendly relations between superior –
subordinate.
The Collegial Model

This is a best model based on the partnership between workers and management in which both work
together as a team and respect each other. Workers are satisfied by their job and they are committed
to the organisation.

CHALLENGES AND OPPORTUNITIES FOR ORGANIZATIONAL BEHAVIOR

1. Globalization

Organizations are no longer constrained by national borders, world become global village rather they
are expanding their trade and businesses all over the globe. This leads to the following:

•Increased foreign assignment

•Working with different people
•Coping with Anti-capitalism backlash
•Overseeing Movement of jobs to countries with low cost labor
•Managing people during the war on terror

2. Managing workforce diversity

Workforce diversity is related with globalization as it focuses on differences between people of

different countries in terms of gender, age, race, and sexual orientation. The people are becoming
heterogeneous demographically, Embracing diversity, Changing US demographics, Changing
management philosophy, Recognizing and responding to difference.

3. Improving Quality and productivity

Excess capacity translates helps in the increase of competition and forcing managers to reduce costs
and, to improve the organization quality and productivity at the same time.

4. Improving Customer service

OB contributes in the improvement of an organization performance by showing that how employees’

behaviour and attitude is associated with the customer satisfaction.

5. Coping with Temporariness

The organizations need to move fast for their Survival. Jobs are redesigned, task are done by
flexibility, trained old employees with better understanding of change.

6. Balance work-life conflicts

Job security, Flexible Working hours, creating opportunities for employees design workplace
,reporting time, and jobs helps employees to maintain their balance life

7. Creating positive Work Environment

Positive environment can be created by strengthening human force, vitality, right person appointed at
right place, effort on what good for organization.

8. Improving Ethical Behavior

Manager should define clearly the right and wrong conduct, Fair policy and appropriate system,
Increase confidence and trust over organization. They shouldn’t place an order on which subordinate
don’t agree.

Diversity in Organizations

Workforce diversity is a function of the similarities and differences among employees in such
characteristics as age, gender, ethnic heritage, physical or mental ability or disability, race, and sexual
orientation. Managers of diverse work groups need to understand how their members' social
conditioning affects their beliefs about work and must have the communication skills to develop
confidence and self-esteem in their employees.
Diversity is increasing due to following factors:

• More women are working than ever before

• The workforce will continue to get older
• The number of immigrants has increased
• Ethnic and racial diversity is increasing
• More women in workforce today than ever
• Better educated than ever
• Most “nonstandard” workers (those who do not hold regular, full-time jobs) are women
• 55% of workers paid by temporary agencies are women
• 70% of part-time workers are women

Challenges of Diversity

• Availability Challenge
• In past employers could control diversity
• More people than jobs
• Qualified employees have become scarce
• Employers must become more flexible
• Realize “Different does not mean deficient”

Employment statistics show that the future workforce will be radically different from the workforce
of today. The goal of valuing diversity is to utilize all of the differences among workers for the
benefit of the workers and the organization.

International business has rapidly become an important part of almost every manager's life and is
likely to become even more important in the future. Managers need to recognize that employees from
different backgrounds are similar in some respects and different in others.
 UNIT-2

ORGANIZATIONAL CULTURE AND CLIMATE

Organizational culture is a system of shared beliefs & attitudes that develop within an organization &
guides the behavior of its members. It is also known as "corporate culture", & has a major impact on
the performance of organization & especially on the quality of work life experienced by the
employees. Organizational culture "consists of the norms, values & rules of conduct of an
organization as well as management styles, priorities, beliefs & inter-personal behaviors. Together
they create a climate that influences how well people communicate, plan & make decisions".

CONCEPT OF ORGANIZATIONAL CULTURE: Culture consists of beliefs & behavior. It is

cultivated behavior in the sense that it is learnt from the other members of the society. Organizational
culture is the totality of beliefs, customs, traditions & values shared by the members of the
organization. Organizational culture stress on sharing of norms & values that guide the organizational
members' behavior. These norms & values are clear guidelines as to how employees are to behave
within the organization& their expected code of conduct outside the organization.

NATURE OF ORGANIZATIONAL CULTURE:- The main features of organizational culture are as

follows:-

1. Like an individual, every organization has its own personality.

2. The personality of the organization defines the internal environment of an organization.
3. It differentiates an organization from the others.
4. It is relatively enduring or stable over time.
5. It exercises a significant influence on the attitudes, behavior & performance of organizational
members.

Organizational culture is a set of beliefs, assumptions, values, shared feelings & perceptions
which influence the actions & decisions taken by the organizational members. For e.g., if the
 culture encourages innovativeness, any problem will make people take initiative & risks, & try
out new ways of doing things. On the other hand, if the organizational culture is security oriented,
the same problem situation would cause people to start looking for rules, procedures as a mode of
response.

"Organizational Climate" is different from "Organizational Culture". According to Stephen

P. Robbins "Organizational culture is a relatively uniform perception held by the organization, it
has common characteristics, it is descriptive, it can distinguish one organization from another & it
integrates individual, group & organization system variables". Each & every organization has a
culture that influences the behavior of the employees toward colleagues, supervisors,
subordinates, clients, competitors, etc. Internal environment of an organization is often referred to
organizational climate.

This makes one organization unique; such differences are found in various kinds of employees in
terms of personal characteristics of members such as their values, needs, attitudes, expectations,
stay in organization. When considered collectively, the actions of the individuals become more
meaningful for viewing the total impact upon the climate & determining the stability of the work
environment. It should be noted that the climate is to be viewed from a total system perspective.
While there may differences in climates within departments these will be integrated to a certain
extent to denote overall organizational climate.

ELEMENTS OF ORGANIZATIOAL CULTURE: - Following are the elements of organizational

culture:-

INDIVIDUAL AUTONOMY: - In this the individuals have responsibility, freedom & opportunities
of exercising initiative that an individual has in the organization.

STRUCTURE: - In this the organization creates objectives, performance expectations & authority
relationships.

MANAGEMENT SUPPORT: - In this the managers provide clear communication, assistance,

warmth & support to their subordinates.
IDENTITY:- In this the members identify with the organization as a whole rather than with their
particular work group or field of professional expertise.

PERFORMANCE REWARD SYSTEM: - Reward system of an organization include increase in

salary, promotions etc., is based on employee performance rather than on seniority & favoritism.

RISK TOLERANCE: - In this employees are encouraged to be innovative, aggressive & risk taking.

TYPES OF ORGANIZATIONAL CULTURES: - Following are the types of organizational

cultures:-

AUTHORITARIAN & PARTICIPATIVE CULTURE: - In the authoritarian culture there is

centralization of power with the leader & obedience to orders & discipline are stressed. Any
obedience is punished severely to set an example to others. The basic assumption is that the leader
knows what is good for the organization & he always acts in its interests.

MECHANISTIC & ORGANIC CULTURES: - The mechanistic organizational culture has the values
of bureaucracy & so is also called "Bureaucratic Culture". Organizational jobs are created around
narrow specializations & people think of their careers mainly within these specialization. There is a
great deal of departmental loyalty. This sort of culture resists change & innovation. In organic culture
formal hierarchy of authority, departmental boundaries, formal rules & regulations & prescribed
channels of communications are found. Emphasis is on task accomplishment, team work, free flow of
communication – formal & informal. There is a understanding within the staff like at the of
problems, threats & opportunities the organization is facing & willingness to take part in solving the
problems. The cultures stress flexibility, consultation, change & innovation.

SUB-CULTURE & DOMINANT CULTURE: - Each department of an organization may have its
own culture representing a sub-culture of the system. An organizational culture takes place when
there is an integration of all the departments. Within any given unit the tendency for integration &
consistency will be assumed to be present, but it is perfectly possible for coexisting units of a larger
system to have cultures that are independent & even in conflict with each other.

Organizational climate (sometimes known as Corporate Climate) is the process of quantifying the
“culture” of an organization, it precedes the notion of organizational culture. It is a set of properties
of the work environment, perceived directly or indirectly by the employees, that is assumed to be a
major force in influencing employee behavior.

Climate and culture are both important aspects of the overall context, environment or situation.

Managerial Communication

Managerial communication is a function which helps managers communicates with each other as
well as with employees within the organization.

Communication helps in the transfer of information from one party also called the sender to the other
party called the receiver.

Managerial Communication helps in the smooth flow of information among managers working
towards a common goal. The message has to be clear and well understood in effective
communication.

The team members should know what their manager or team leader intends to communicate.

Effective managerial communication enables the information to flow in its desired form among
managers, team leaders and their respective teams.

Managerial communication is of the following two types:

Interpersonal Communication - Interpersonal communication generally takes place

between two or more individuals at the workplace.

Organizational Communication - Communication taking place at all levels in the
organization refers to organizational communication.

Ways of Managerial Communication

A successful manager is one who communicates effectively with his subordinates. It is really
essential for managers to express their views clearly for the team members to understand what
exactly is expected out of them.
Usually there are two ways managers communicate amongst themselves and with their subordinates:

i. Verbal Communication

Communication done with the help of words is called as verbal communication. No written
records are available in verbal communication.

In verbal communication individuals need to be very careful about their speech. What they
speak and how they speak matter a lot. Managers must choose the right words to address their
team members. Make sure you do not confuse your team members.

One has to be loud and clear while interacting with employees at the workplace. Be very clear
and precise.

ii. Written Communication

Communication is also done through emails, letters, manuals, notices and so on. Such mode
of communication where written records are available is often called written communication.

Managers must inculcate a practice of communicating through emails with their juniors as it
is the one of the most reliable modes of communication. It is essential for the managers to
master the art of writing emails. Avoid using capitals, bright colours, designer font styles in
official mails. Make sure your signatures are correct.

Body Language

Managers must also take special care of their body language, facial expressions, gestures for effective
communication.

A manager who always has a frown on his face is generally not liked and respected by people. Being
a Boss does not mean you need to shout at people. Be warm and friendly with your team members.

Organizational Communication

Organizational Communication is of the following two types:

 i. Formal Communication

Communication which follows hierarchy at the workplace is called as formal communication.

Employees communicate formally with each other to get work done within the desired time
frame.

ii. Informal Communication

Employees also communicate with each other just to know what is happening around. Such
type of communication is called as informal communication and it has nothing to do with
designation of individuals, level in the hierarchy and so on.

Direction of Communication Flow

i. Upward Communication

Flow of information from employees to managers is called upward communication. Upward

communication takes place when employees share their views with their managers on their
nature of work, job responsibilities and how they feel about the organization on the whole.

ii. Downward Communication

Downward communication takes place when information flows from managers to the
subordinates.

Managers often give orders and directions to their subordinates as to what to do and how to
do various tasks. Such type of communication is called downward communication.
ATTITUDE AND VALUES

THE NATURE AND DIMENSIONS OF ATTITUDES

Persistent tendency to feel and behave in a particular way towards some object

Characteristics of” Attitudes”

• They tend to persist unless something is done to change them.

• Attitudes can fall anywhere along a continuum from very favorable to very unfavorable.
• They are directed toward some object about which a person has feelings and beliefs.

There are many different definitions (e.g., Allport; Fishbein & Ajzen) "Attitudes are associations
between attitude objects (virtually any aspect of the social world) and evaluations of those objects"

"An attitude is a mental and neural state of readiness organized through experience exerting a
directive or dynamic influence upon the individual's response to all objects and situations with which
it is related."

Components of Attitude

A: Affective (liking, feeling for)

B: Behavioral (how you behave toward object in question)

C: Cognition (your beliefs/thoughts about object in question)

FORMATION OF ATTITUDE

Essentially attitudes are the outward manifestation of your inner values and beliefs. These develop
over time. As you grow you watch the significant people around you behaving in a particular way;
you are being told to cherish certain things over others and you learn from your teachers and peers
and come to value certain things over other, thus forming your value system. These in turn give rise
to development of your attitudes.
VALUES

These make up our belief system. Values are beliefs that guide our behaviour. They have often been
bolstered by religious sanctions: God said this is the way to live. However, they are socially
constructed and devised to allow society to operate with the least amount of conflict. VALUES
define what we accept as good, right or acceptable. We may have our own personally thought-out
and constructed values but many of the values we accept are socially or culturally constructed.
Society develops a value system or a set of values and conveys these to us through schools,
governments, churches, the media, the family etc. Nationalities often have different values which
mean communication between nations is sometimes difficult. We value the freedom of people to
have as many children as they wish while China has introduced the value of a one child limit because
the value of inhibiting population growth is more important to them.

Emotions and Mood

Emotions, moods and OB The workplace was considered emotions and mood free space in the
universe. The business has nothing to do with emotions and moods the people have either positive or
negative. But recently it is felt that people make the workplace and as people are not free from
emotions, so it is not possible to make emotions free place in the midst of people. There are two
possible explanations:

1. Myth of Rationality – no frustration, fear, anger, love , hate, joy, grief and similar feeling at job.

2. Emotions are Disruptive – Negative -- frustrate the performance of employee, rarely constructive –
enhance performance

Three terms– Affect, emotion &mood

1. Affect—A broad range of feelings that people experience. It can be experienced in the form of
emotions and moods.

2. Emotions – Intense feelings that are directed at someone or something.

3. Moods – Feelings that tend to less intense than emotions and that lack a contextual stimulus.
Characteristics of Emotions
1) Caused by specific event.
2) Very brief in duration.
3) Specific and numerous in natures.
4) Usually accompanied by distinct facial expressions.
5) Action oriented in nature.
6) Emotions are never neutral.

Types of Emotions

There are 18 most commonly seen and experienced emotions. They are,
1-anger
2-contempt
3-enthusiasm
4-envy
5-fear
6-frustration
7-joy
8-pride
9-surprise
10-disappointment
OB Applications on Emotions & Mood

1. Selection: criteria are adjusted. As people with emotions sold more than their counterparts with
less emotional intelligence.

2. Decision Making: Positive moods and emotions seen to help decision making. Positive moods–
help problem solving skills, make quick decision. Negative moods– poorer decisions,
perfectionist searching for perfect decision – hard to find

3. Creativity: people with Positive Moods open in thinking- that leads to creativity. Moreover,
people in positive mood feel everything is going okay and do not feel to make change that hinders
creativity.

4. Motivation: Positive moods – solved better word puzzles– who saw funny clip than the group
with viewing funny puzzles. Positive feedback enhances positive moods that in turn results in
better motivation to do job well.

5. Leadership: Effective leadership rely on emotional appeals to help convey their messages.
Excitements, enthusiastic and active leaders organize their subordinates better and convey better
efficacy, competence, optimism.

6. Negotiation: the negotiators with anger better win over the opponents. Negative emotions
about bad performance loose in future negotiations.

7. Customer Service: Emotional worker do better business and repeat. More satisfaction is
attached with emotional dealing .Emotional Contagion – the process by which peoples’ emotions
are caused by the emotions of others.

8. Job Attitudes: “Never take your work home” but it not easy –people having a good day at
work take good moods to their homes.
 UNIT-3

PERCEPTION –PROCESS AND ERRORS

Perception:
The process by which individuals organize and interpret their impressions in order to give meaning to
their environment.

Perception is a process by which individuals organize and interpret their sensory impressions in order
to give meaning to their environment.

Factors affecting perception

1. Factors that shape (and can distort perception):

• Perceiver
• Target
• Situation

2. When an individual looks at a target and attempts to interpret what he or she sees, that
interpretation is heavily influenced by personal characteristics of the individual perceiver.

3. The more relevant personal characteristics affecting perception of the perceiver are attitudes,
motives, interests, past experiences, and expectations.

4. Characteristics of the target can also affect what is being perceived. This would include
attractiveness, gregariousness, and our tendency to group similar things together. For example,
members of a group with clearly distinguishable features or color are often perceived as alike in
other, unrelated characteristics as well.
5. The context in which we see objects or events also influences our attention. This could include
time, heat, light, or other situational factors.

Perceptual Process:

Sensation: An individual ability to detect stimuli in the immediate environment.

Selection: process in which a person uses to eliminate some of the stimuli that have been
sensed and retain others for further processing.
Organization: process of placing selected perceptual stimuli into a framework for storage.
Translation: finally, stimuli are interpreted and given meaning

Errors in Perception-

The main sources of errors in perception include the following:

• Central tendency: Appraising everyone at the middle of the rating scale.

• Contrast error: Basing an appraisal on comparison with other employees rather than on
established performance criteria.

• Different from me: Giving a poor appraisal because the person has qualities or characteristics not
possessed by the appraiser.

• Halo effect: Appraising an employee undeservedly on one quality (performance, for example)
because s/he is perceived highly by the appraiser on another quality (attractiveness).

• Horn effect: The opposite of the halo effect. Giving someone a poor appraisal on one quality
(attractiveness) influences poor rating on other qualities. (performance).

• Initial impression: Basing an appraisal on first impressions rather than on how the person has
behaved throughout the period to which appraisal relates.

• Latest behavior: Basing an appraisal on the person's recent behavior.

• Lenient or generous rating: Perhaps the most common error, being consistently generous in
appraisal mostly to avoid conflict.
• Performance dimension error: Giving someone a similar appraisal on two distinct but similar
qualities, because they happen to follow each other on the appraisal form.

• Spillover effect: Basing this appraisal, good or bad, on the results of the previous appraisal
rather than on how the person has behaved during the appraisal period.

• Status effect: Giving those in higher level positions consistently better appraisals than those in
lower level jobs.

• Strict rating: Being consistently harsh in appraising performance.

LEARNING – THEORIES AND REINFORCEMENT SCHEDULES

“Learning is the process by which new behaviors are acquired. It is generally agreed that learning
involves changes in behaviors, practicing new behaviors, and establishing permanency in the
change.” Mitchell

Three theories have been offered to explain the process by which we acquire patterns of behaviour.

These are –

(1) Classical conditioning – Classical conditioning grew out of experiments to teach dogs to salivate
in response to the ringing of a bell, conducted in the early 1900s by Russian Psychologist sinologist
Ivan Pavlov. Four elements are always present in classical conditioning. These are -

(i) Unconditioned stimulus (US) – Like food which invariably causes to react in a certain way i.e.,
salivation.

(ii) Unconditioned response (UR) – Takes place whenever the US is presented, i.e., whenever the dog
is given food (US), it salivates.

(iii) Conditioned stimulus (CS) – The object that does not initially bring about the desired response
like the sound of the bell.

(iv) Conditioned response (CR) – A particular behaviour that the dog learn to produce to the CS, i.e.,
Salivation.

1. before conditioning
Meat (US) Salivation (UR)

Bell (Neutral stimulus) No response

2. during Conditioning

Meat (US) + Bell (CS) Salivation (UR)

3. after conditioning

Bell (CS) Salivation (CR)

(2) Cognitive Learning Theory: Cognitive theory of learning is based on the cognitive model of
human behaviour. Cognition refers to an individual’s ideas, thoughts, knowledge, interpretations &
understanding about himself & his environment.

Cognitive theorists argue that the learner forms a cognitive structure in memory, preserves and
organizes information about the various events that occur in a learning situation. For example in his
famous pace-learning experiment, Tolman trained a rat to turn right in a “T’ maze in order to obtain
food. Then he started the rat from the opposite part of the maze; according to operant conditioning
theory, the rat should have turned right because of past conditioning. But the rat, instead, turned
towards where the food have been placed this phenomenon forced Tolman to conclude that the rat
formed a cognitive map to figure out how to get the food and reinforcement was not a precondition
for learning to take place thus, in learning.

(3) Social Learning theory: Social learning theory combine and integrates both behaviouristic and
cognitive concepts and emphasizes the integrative nature of cognitive, behavioral and environmental
determinants. This theory agrees with some parts of behavioral & cognitive theories but finds that
these theories do not explain the processes and elements there in fully. It posits that learning can also
takes place via modeling.

REINFORCEMENT

Reinforcement can be defined as anything that increases the strength of response & tends to induce
repetitions of the behaviour that preceded the reinforcement. Sometimes, reinforcement is equated
with motivation as reinforcement plays important role in motivation reinforcement is an
environmental event that follows a response. In general, motivation is an internal explanation of
behaviour whereas reinforcement is an external explanation of behaviour.

Principles of Reinforcement

a) Skinner identified two types of reinforcing events - those in which a reward is given; and those in
which something bad is removed. In either case, the point of reinforcement is to increase the
frequency or probability of a response occurring again.

1) Positive reinforcement - give an organism a pleasant stimulus when the operant response is
made. For example, a rat presses the lever (operant response) and it receives a treat (positive
reinforcement)

2) Negative reinforcement - take away an unpleasant stimulus when the operant response is made.
For example, stop shocking a rat when it presses the lever (yikes!)

b) Skinner also identified two types of reinforcement forces

1) Primary reinforce - stimulus that naturally strengthens any response that precedes it (e.g., food,
water, sex) without the need for any learning on the part of the organism. These rein forcers are
naturally reinforcing.

2) secondary/conditioned reinforce - a previously neutral stimulus that acquires the ability to

strengthen responses because the stimulus has been paired with a primary reinforce. For example, an
organism may become conditioned to the sound of food dispenser, which occurs after the operant
response is made. Thus, the sound of the food dispenser becomes reinforcing. Notice the similarity to
Classical Conditioning, with the exception that the behavior is voluntary and occurs before the
presentation of a reinforce.

4. Schedules of Reinforcement

There are two types of reinforcement schedules - continuous, and partial/intermittent (four subtypes
of partial schedules)
a) Fixed Ratio (FR) - reinforcement given after every N th responses, where N is the size of the ratio
(i.e., a certain number of responses have to occur before getting reinforcement).

For example - many factory workers are paid according to the number of some product they produce.
A worker may get paid $10.00 for every 100 widgets he makes. This would be an example of an
FR100 schedule.

b) Variable Ratio (VR) - the variable ration schedule is the same as the FR except that the ratio
varies, and is not stable like the FR schedule. Reinforcement is given after every N th response, but N
is an average.

For example - slot machines in casinos function on VR schedules (despite what many people believe
about their "systems"). The slot machine is programmed to provide a "winner" every average N th
response, such as every 75th lever pull on average. So, the slot machine may give a winner after 1
pull, then on the 190th pull, then on the 33rd pull, etc...just so long as it averages out to give a winner
on average, every 75th pull.

c) Fixed Interval (FI) - a designated amount of time must pass, and then a certain response must be
made in order to get reinforcement.

d) Variable Interval (VI) - same as FI but now the time interval varies.

5. Punishment - Whereas reinforcement increases the probability of a response occurring again, the
premise of punishment is to decrease the frequency or probability of a response occurring again.

a) Skinner did not believe that punishment was as powerful a form of control as reinforcement, even
though it is the so commonly used. Thus, it is not truly the opposite of reinforcement like he
originally thought and the effects are normally short-lived.

b) There are two types of punishment:

1) Positive - presentation of an aversive stimulus to decrease the probability of an operant response

occurring again. For example, a child reaches for a cookie before dinner, and you slap his hand.
2) Negative - the removal of a pleasant stimulus to decrease the probability of an operant response
occurring again.

PERSONALITY

“The dynamic organization within the individual of those psychophysical systems that determine his
unique adjustments to his environment.”

This definition is quite comprehensive and one of the most frequently used definition. It also refers to
the point I mentioned (in a more technical way though) that Personality is a sum total of all the
different ways in which a person reacts and interacts with others.

PERSONALITY DETERMINANTS

1. Brain

Brain is one of the most important factors of personality determinant. It is generally believed that the
father and the child adopt almost the same type of brain stimulation and the later differences are the
result of the environment in which the child has been grown up.

Electrical Stimulation of the Brain (ESB) and Split Brain Psychology (SBP) and the outcomes of
genetic transmissions and are the tools that are used by the management of any organization to mould
and amend the employee’s behavior to a more positive and proper one.

2. Physical Factors

One of the most important factors in determining personality is the ‘Physical Characteristics’ of an
individual. It is believed that this factor plays a vital role in determining one’s behavior in any
organization. Physical features may involve the height of a person (short or tall), his color (white or
black), his health status (fat or skinny) and his beauty (handsome or ugly).

These factors are involved when interacting with any other person and thus contribute in the
personality development in many ways.

3. Social Factors
Social factors also play a vital role in determining one’s personality. The things that revolve and
evolve around us on a regular basis determine our personality. The society that we live in, the cultural
environment that we face daily, the community we get interacted to, all are included in this factor.
Relationships, co-ordination, co-operation, interaction, environment in the family, organizations,
workplaces, communities, societies all contribute in way or another as personality determinants.

4. Cultural and Religious Factors:

The culture in which one life in that may involve traditional practices, norms, customs, procedures,
rules and regulations, precedents and values, all are important determinants of personality.

Moreover, the creed, religion and believes are also very important factors of personality
determinants.

5. Heredity Factor:

Perhaps, the most surprising and astonishing factor (at least in my eyes) is the “Heredity Factor”.
When I first read about that, I was quite stunned and really gave a bow to nature. The example which
I read was really interesting, and I am writing the same extract that I read.

Personality Theories

(1) Psychoanalytic theory – This is based on the motion that man is motivated more by unseen
forces than he is controlled by conscious and rational thought. Clinical techniques were used
primarily to develop psychoanalytic theory freud noted that his patients’ behaviour could not always
be consciously explained this clinical finding led him to conclude that major motivating force in man
was unconscious framework. This framework contains three aspects, though interrelated but often
conflicting. These are id, ego and superego. They are so interrelated that they can only be artificially
separated for individual strictly and analysis.

(1) The Id – The id is the source of psycho energy and seeks immediate gratification biological or
instinctual needs. Freud believed that instinct could be classified under life instincts and death
instincts. Life instincts are hunger, thirst and sex; the energy involved in their activity is libido. The
id operates on what is called the pleasure principle, i.e., it arts to avoid tensions and seeks immediate
pleasure. Many of its impulses are not acceptable to the values of organized society. For example,
when an individual is thirsty his id would urge him to grab something to drink. It doesn’t matter how
the drink was acquired.

(2) Ego – The ego comes into being because of the limitations of the id in dealing with the real world
through learning and experiences. The ego is the conscious and logical part of human personality and
is associated with the reality principle, which is capable of postponing the release of tension until that
time when it will be effectively directed at coping with the external environments the ego is said to
be the executive of the personality.

(3) The Super Ego – The super ego represents social and personal norms and serves as an ethical
constraint on behaviour. It can best be described as the conscience. The super ego provides norms to
ego to determine what is wrong or right. However, a person is not aware of the working of the
superego, and conscience is developed by absorption of cultural values and norms of society.

The psychoanalytic theory of Freud is based on theoretical conception, rather than a measurable
item for scientific verification. The theory does not give a total picture of behavior emerging from the
personality. However this theory gives an important insight into personality structure and the idea of
unconscious motivation which can be used by behavioral scientists.

Freud developed the theory of psychoanalytic personality development which implicated certain
structures of the human mind and conflicts among these structures in the development of human
personality.

1. Oral Stage (birth to 1.5 years of age): The oral stage's major pleasure center is the oral cavity. A
baby's first experience with much of the physical world is through the mouth. The goal of this stage
was to develop the proper amount of sucking, eating, biting, and talking, which aid in early
development steps such as breast feeding and speaking. Children who did not master this stage would
develop an oral fixation that might lead to drinking, smoking, and nail-biting or other mouth-based
aggressive behaviors.

2. Anal Stage (1.5-3 years of age): The anal stage's major pleasure center is the anal cavity. One of
the first impulses that a baby must learn to control is his/her excretion system. The goal of this stage
is mastery of this system, which usually culminates in proper toilet training. Children who do not
adequately master this stage or were harshly punished during the toilet training process developed an
anal fixation. This might lead to anal retentive or anal expulsive personalities in which one is overly
tidy, and the other overly messy.

3. Phallic Stage (3-5 years of age): The phallic stage's major pleasure center is the main genital organ
in either boys or girls. The child is thought to develop his/her first sexual desires which are directed
at the closest known adult: the opposite sex parent. Boys develop the Oedipal complex with affection
for their mothers while girls developed the Elektra complex with affection for their fathers. The goal
of this stage is to master this internal conflict and move toward more appropriate sexual desires.
Children who struggle here develop phallic fixations which affect their relationships with their
parents adversely.

4. Latency Stage (5-12 years of age): The latency stage's major pleasure centers are dormant sexual
feelings for the opposite sex. Here, the child consolidates character habits developed in the previous
three stages. Successful mastery in each of these stages is necessary for a mature, adult personality to
develop before puberty. If the child does not learn to derive pleasure from external sources such as
schooling or friendships, he/she may develop neuroses or fixations on socially unacceptable
activities.

5. Genital Stage (12 years - adulthood): The genital stage's main pleasure center is the surge of sexual
hormones in the body during puberty. Adolescents must establish successful relationships with peers
in order to master this stage. Young adults who do not transition from solitary, infantile sexuality to
consensual, mature sexuality develop fixations on sex and tend to have unsuccessful relationships.

Chris Argyris Maturity- Immaturity theory

According to Argyris, seven changes should take place in the personality of individuals if they
are to develop into mature people over the years.

• First, individuals move from a passive state as infants to a state of increasing

activity as adults.
• Second, individuals develop from a state of dependency upon others as infants
to a state of relative independence as adults.
• Third, individuals behave in only a few ways as infants, but as adults they are
capable of behaving in many ways.
 • Fourth, individuals have erratic, casual, and shallow interests as infants but
develop deeper and stronger interests as adults.
• Fifth, the time perspective of children is very short, involving only the present,
but as they mature, their time perspective increases to include past and future.
• Sixth, individuals as infants are subordinate to everyone, but they move to equal
or superior positions with others as adults.
• Seventh, as children, individuals lack an awareness of a “self,” but as adults
they are not only aware of, but they are able to control “self.”

Motivation in Organization

Motivation is defined as an act of stimulating someone to secure commitment towards a desired

course of action. Motivation is a complex process; its understanding is a difficult task. For the
purpose of understanding of motivation,

Motivation is a process of arousing and sustaining goal-directed behavior induced by the expectation
of satisfying individual needs
The Motivation process

Unsatisfied need => Tension => Drives => Search Behavior => Satisfied needs => Reduction of
tension => New unsatisfied needs

A number of theories have been proposed.

Maslow propounded need hierarchy theory of motivation. He has classified needs and self-
actualization needs. According to him, motivation comes from unsatisfied need.

A hierarchy of five basic needs

• Physiological needs: hunger, thirst, shelter, sex, and other bodily needs
• Safety needs: security and protection from physical and emotional harm
• Social needs: affection, belongingness, love, acceptance, and friendship.
• Esteem needs: internal esteem (self-respect, autonomy, achievement), and external esteem
(status, recognition, attention, power, and face)
• Needs for self-actualization: the drive to best realize one's potential, including potential in
personal growth, achievements, and self-fulfillment.

Fredrick Hertzberg found two factors determine motivation and satisfaction of employees. He has
identified hygiene and motivational factors. The company policy and administration, supervision,
relationship with superior, work conditions, salary, relationship with peers, personal life, relationship
with subordinates, status and security are hygiene factors, achievement, recognition, work itself,
responsibility, advancement a growth are motivators. According to the theory hygiene factors prevent
dissatisfaction and motivators alone help in motivating employees.

McGregor formulated certain assumptions about human nature and suggested theory X and Y.
Theory X assumes that average human being dislikes work. Hence, coercion, financial rewards,
punishments motivate him. Inculcating a sense of belongings and self-control can motivate
employees as theory Y assumes that average human being learns to accept responsibility.

William Ouchi tried to integrate the characteristics of American and Japanese organization and
formulated Z theory. The theory identified distinctions between American and Japanese
organizations with respect to decision making, assumption of responsibility, exercise of control,
promotion opportunities, career paths and concern for personnel.

Alderfer's ERG theory

(1). Three groups of core needs

• Existence needs: physiological and safety needs

• Relatedness needs: the desire for maintaining important interpersonal relationships: social
needs, and the external components of the esteem needs
• Growth needs: an intrinsic desire for personal development: the intrinsic component of
esteem, and self-actualization

(2). Basic assumptions:

• Satisfied low-order needs lead to the desire to satisfy higher-order needs.

• Multiple needs can be operating as motivators at the same time.
• Frustration in attempting to satisfy a higher-level need can result in regression to a lower
need.

McClelland's Need Theory

Need for achievement: the drive to excel, to set a higher goal, to seek higher responsibility, and to
strive to succeed.

The characteristics of a higher achiever:

• Seek personal responsibility

• Seek feedback on their performance
• Seek moderate risks and goals

• Need for power: the desire to have impact on, to influence and control the behavior of others.
o Socialized power: used for social benefits
o Personalized power: used for personal gain
 • Need for affiliation: the desire to be liked and accepted by others.

Stress and its Management

Stress is a physical condition and body discomfort. Stress is a common phenomenon. Every
individual experiences stress at some or other time. Employees experience stress in the process of
meeting the targets and working for long hours. When the person experiences a constraint inhibiting
the accomplishment, it leads to job burnout. In fact for most of time individuals are responsible for
stress. However, organizations also create stress in the individuals. Why one should be concerned
about stress? The reason is that the stress has more negative consequences than positive.

Stress is a state of discomfort experienced by an individual. Loss of emotional stability is the general
expression of stress. It is generally apparent when the individual experiences a biological disorder.
Stress has a positive association with the age constraints and the nature of occupation. Certain
occupation is more prone to stress than the others. For instance, drivers of vehicles, doctors, lawyers
and managers are more likely to get stress than teachers, bankers and operating personnel.

The following are the features of stress.

• Stress is both psychological aspect.

• It is common to both the genders.
• It results from deviation of expectations from actual situation.
• It is symptomatic, Potential stress appears with the symptoms. If the potential stress is ignored
it leads to actual stress.
• Stress is treated to be negative. Nevertheless, it has positive consequences. This is called as
eutstress.
• Stress is an interactive concept. It does not spring from the internal organs of the individual. It
comes from the interaction of the human being with the environment. Thus, environment has
a profound influence on the stress.
• Stress is generic term. If it is applied to the context of organization, it is known as work stress
or job stress.
• Stress occurs only when the human being feels mediation of the internal or external factors.
• Stress is related to the attitude of the person. Stress does not occur when the person is having
 an indifferent attitude to the opportunity.
• Stress is associated with certain common biological disorders such as heart attack, stroke,
diabetic, blood pressure, neurological disorders etc.

CAUSES OF STRESS

Stress is a psychological state of imbalance coupled with biological disorder. Individual experiences
deviation in his biological system which is called potential stress. Potential stress moderated by
individual, organizational and environmental variable leads to actual stressors. Thus, stressors can be
intra-organizational factors. The intra organizational factors causing stress are divided into individual
factors and organizational factors. Let us learn them in detail.

Personality and individual differences: Individual basic dispositions are the main reason for
potential stress. Introversion, extroversion, masculinity, rigidity, locus of control, personal life,
demographic differences such as age, health, education and occupation are some of the reasons
causing stress in individuals. It is found that type A personality is prone to more stress than type B
personality. Type B personality is typically relaxed, carefree, patient and less serious in achieving
objectives. Thus, he never feels stress.

Individual differences in perception, job experiences, social support, hostility etc. are some of the
reasons that cause stress.

Family Problems: Family issues influence the personal life of individuals. Sound marital
relationships, marital discipline, early and healthy children may lead to happy personal life.

Economic Problems: Economic difficulties are the main cause of stress. Poor management of
personal finances, heavy family expenditure, and constant demand for money, poor incoming earning
capacity and slow financial growth in the job are some of the economic reasons responsible for
greater stress.

Organizational Factors: An organization is a combination of resources, goals strategies, and

policies. In order to make people to work, organizations create structure, process and working
conditions. In modern organizations, number of globalism, organizational adjustments like mergers
and acquisitions lead to stress among employees stress. In addition, a number of internal
organizational factors cause management employee stress. Some of them are poor working
conditions, strained labour management relations, disputed resources allocations, co-employee
behaviour, organizational design and policies, unpleasant leadership styles of the boss,
misunderstandings in organizational communication, bureaucratic controls, improper motivation, job
dissatisfaction, and less attention to merit and seniority.

TECHNIQUES OF STRESS MANAGEMENT

• Identifying and listing of daily activities in a logical order.

• Arranging the activities of the day based on importance and urgency.
• Preparing logical schedule of activities.
• Analyzing and understanding the daily cycle and nature of the job.
• Allocating time properly to various activities based on time demands.
• Delegating minor tasks to the subordinates in order to make use of the time in a better
manner.
• Discouraging unwanted visitors.
• Setting unfinished tasks on the list for tomorrow.

UNIT-4

Creative Effective Teams

The first rule of team building is an obvious one: to lead a team effectively, you must first establish
your leadership with each team member. Remember that the most effective team leaders build their
relationships of trust and loyalty, rather than fear or the power of their positions.

• Consider each employee's ideas as valuable. Remember that there is no such thing as a
stupid idea.
• Be aware of employees' unspoken feelings. Set an example to team members by being open
with employees and sensitive to their moods and feelings.
• Act as a harmonizing influence. Look for chances to mediate and resolve minor disputes;
point continually toward the team's higher goals.
• Be clear when communicating. Be careful to clarify directives.
• Encourage trust and cooperation among employees on your team. Remember that the
relationships team members establish among themselves are every bit as important as those
you establish with them. As the team begins to take shape, pay close attention to the ways in
which team members work together and take steps to improve communication, cooperation,
trust, and respect in those relationships.
• Encourage team members to share information. Emphasize the importance of each team
member's contribution and demonstrate how all of their jobs operate together to move the
entire team closer to its goal.
• Delegate problem-solving tasks to the team. Let the team work on creative solutions
together.
• Facilitate communication. Remember that communication is the single most important
factor in successful teamwork. Facilitating communication does not mean holding meetings
all the time. Instead it means setting an example by remaining open to suggestions and
concerns, by asking questions and offering help, and by doing everything you can to avoid
confusion in your own communication.
• Establish team values and goals; evaluate team performance. Be sure to talk with
members about the progress they are making toward established goals so that employees get a
sense both of their success and of the challenges that lie ahead. Address teamwork in
performance standards. Discuss with your team:
• What do we really care about in performing our job?
• What does the word success mean to this team?
• What actions can we take to live up to our stated values?
• Make sure that you have a clear idea of what you need to accomplish; that you know what
your standards for success are going to be; that you have established clear time frames; and
that team members understand their responsibilities.
• Use consensus. Set objectives, solve problems, and plan for action. While it takes much
longer to establish consensus, this method ultimately provides better decisions and greater
productivity because it secures every employee's commitment to all phases of the work.
 • Set ground rules for the team. These are the norms that you and the team establish to ensure
efficiency and success. They can be simple directives (Team members are to be punctual for
meetings) or general guidelines.
• Establish a method for arriving at a consensus. You may want to conduct open debate
about the pros and cons of proposals, or establish research committees to investigate issues
and deliver reports.
• Encourage listening and brainstorming. As supervisor, your first priority in creating
consensus is to stimulate debate. Remember that employees are often afraid to disagree with
one another and that this fear can lead your team to make mediocre decisions. When you
encourage debate you inspire creativity and that's how you'll spur your team on to better
results.
• Establish the parameters of consensus-building sessions. Be sensitive to the frustration that
can mount when the team is not achieving consensus. At the outset of your meeting, establish
time limits, and work with the team to achieve consensus within those parameters.

TYPES OF TEAMS

Teams can be vertical (functional), horizontal (cross-functional), or self-directed (self-managed) and

can be used to create new products, complete specific projects, ensure quality, or replace operating
departments.

• Functional teams perform specific organizational functions and include members from
several vertical levels of the hierarchy. In other words, a functional team is composed of a
manager and his or her subordinates for a particular functional area. Accounting, personnel,
and purchasing departments are examples of functional teams.

• Cross-functional teams are made up of experts in various specialties (or functions) working
together on various organizational tasks. Team members come from such departments as
research and development, design, engineering, marketing, and distribution. These teams are
often empowered to make decisions without the approval of management.
 For example, when Nabisco's executives concluded that the company needed to improve its
relationship with customers and better satisfy customers' needs, they created cross-functional
teams whose assignments were to find ways to do just that. Although functional teams are
usually permanent, cross-functional teams are often temporary, lasting for as little as a few
months or as long as several years, depending on the group tasks being performed.

• Self-directed work teams, or self-managed teams, operate without managers and are
responsible for complete work processes or segments that deliver products or services to
external or internal customers. Self-directed work teams (SDWTs) are designed to give
employees a feeling of “ownership” of a whole job. For example, at Tennessee Eastman, a
division of Eastman Kodak Company, teams are responsible for whole product lines—
including processing, lab work, and packaging. With shared team responsibilities for work
outcomes, team members often have broader job assignments and cross-train to master other
jobs. This cross-training permits greater team flexibility.

No matter what type of team is formed, the benefits of teamwork are many, including synergy and
increased skills, knowledge, productivity, flexibility, and commitment. Among the other benefits are
increased job satisfaction, employee empowerment, and improved quality and organizational
effectiveness

GROUP BEHAVIOUR & TEAM DEVELOPMENT

GROUP BEHAVIOUR

Group behavior in sociology refers to the situations where people interact in large or small groups.
The field of group dynamics deals with small groups that may reach consensus and act in a
coordinated way. Groups of a large number of people in a given area may act simultaneously to
achieve a goal that differs from what individuals would do acting alone ( herd behaviour). A large
group (a crowd or mob) is likely to show examples of group behaviour when people gathered in a
given place and time act in a similar way—for example, joining a protest or march, participating in a
fight or acting patriotically.
Group

Group may be defined as the aggregation of small number of people who work for common goals
and develop a shared attitude.

The following are the features of the group:-

a. TWO OR MORE PERSONS - A group should have atleast two people. With a single individual
there cannot be a meaningful interaction.

b. COLLECTIVE IDENTITY - Each member of the group must believe that s/he is a part of the
group and be aware of his membership. If not aware, there will be no meaningful interaction.

c. INTERACTION - Each member should share her/his ideas with others through communication, at
least occasionally.

d. SHARED GOAL INTEREST – Every group has a common objective. The shared goal interest/s
brings the group members together.

FORMAL AND INFORMAL GROUPS

Formal:

A formal group is the deliberate and systematic grouping of people in an organization so that
organizational goals are better achieved.

Informal:

Informal groups are the natural and spontaneous grouping of people whenever they work together
over a period of time.

Stages of Group Development

Forming - getting started as a group and looking to the designated leader for guidance.
Storming - competition and conflict at the interpersonal level and over goals and procedures.
Norming - acceptance of other members, cooperation, and building cohesion
Performing - high morale based on pride of task accomplishment and richness of interpersonal
relations.
Adjourning - movement toward closure: disengagement from relationships and termination of tasks.

GROUP THINK

Groupthink is a phenomenon when a group of people get together and start to think collectively with
one mind. The group is more concerned with maintaining unity than with objectively evaluating their
situation, alternatives and options. The group, as a whole, tends to take irrational actions or
overestimate their positions or moral rightness.

One notable disadvantage of groups, which are highly cohesive but not reflexive, is that their
decision-making ability can be drastically reduced by what Janis (1972) termed groupthink.

Groupthink is not inevitable even in cohesive groups. Members of such groups can avoid it by
actively searching out information, irrespective of whether it is contrary to the group’s opinion. The
group can also assign the role of ‘devil’s advocate’ to one member to ensure alternative solutions are
proposed and discussed. When trust is present in cohesive groups, conflict does not damage relations
between members and will ultimately yield more productive solutions.

GROUP SHIFT

In this the group members are more willing to take chances with organizational resources as a group
than they would if they were acting individually. Although, risky decisions can have high payoffs,
they also have the built – in potential for more disastrous consequences.

In comparing group decisions with the individual decisions of members within the group, evidence
suggests that there are differences. In some cases, the group decisions are more conservative than the
individual decisions. More often, the shift is towards greater risk.
Social loafing is the phenomenon of people exerting less effort to achieve a goal when they work in a
group than when they work alone. This is seen as one of the main reasons groups are sometimes less
productive than the combined performance of their members working as individuals, but should be
distinguished from the accidental coordination problems that groups sometimes experience.

Social loafing can be explained by the "free-rider" theory and the resulting "sucker effect", which is
an individual’s reduction in effort in order to avoid pulling the weight of a fellow group member.
Research on social loafing began with rope pulling experiments by Ringelmann, who found that
members of a group tended to exert less effort in pulling a rope than did individuals alone. In more
recent research, studies involving modern technology, such as online and distributed groups, have
also shown clear evidence of social loafing. Many of the causes of social loafing stem from an
individual feeling that his or her effort will not matter to the group.

GROUP DECISION MAKING TECHNIQUES

Decisions are taken to support organizational growth. The whole fabric of management, i.e. its day to
day operation is rightly built on managerial decisions.

According to the Oxford Advanced Learner’s Dictionary the term decision making means - the
process of deciding about something important, especially in a group of people or in an organization.

Trewatha & Newport defines decision making process as follows:, “Decision-making involves the
selection of a course of action from among two or more possible alternatives in order to arrive at a
solution for a given problem”.

1. Brainstorming:

This technique involves a group of people, usually between five and ten, sitting around a table,
generating ideas in the form of free association. The primary focus is on generation of ideas rather
them on evaluation of ideas.

If a large number of ideas can be generated, then it is likely that there will be a unique and creative
idea among them. All these ideas are written on the black board with a piece of chalk so that
everybody can see every idea and try to improve upon such ideas.
Brainstorming technique is very effective when the problem is comparatively specific and can be
simply defined. A complex problem can be broken up into parts and each part can be taken separately
at a time.

2. Nominal Group Technique (NGT):

Nominal group technique is similar to brainstorming except that the approach is more structured.
Members form the group in name only and operate independently, generating ideas for solving the
problem on their own, in silence and in writing. Members do not interact with each other so that
strong personality domination is avoided. It encourages individual creativity.

The group coordinator either collects these written ideas or writes then on a large black board for
everyone to see or he asks each member to speak out and then he writes it on the black board as he
receives it.

These ideas are then discussed one by one in turn and each participant is encouraged to comment on
these ideas for the purpose of clarification and improvement. After all ideas are discussed, they are
evaluated for their merits and drawbacks and each participating member is required to vote on each
idea and assign it a rank on the basis of priority of each alternative solution. The idea with the highest
aggregate ranking is selected as the final solution to the problem.

3. Delphi Technique:

This technique is the modification of the nominal group technique, except that it involves obtaining
the opinions of experts physically separated from each other and unknown to each other. This
insulates group members from the undue influence of others. Generally, the types of problems
handled by this technique are not specific in nature or related to a particular situation at a given time.
For example, the technique could be used to understand the problems that could be created in the
event of a war. The steps in the Delphi technique are:

1. The problem is identified and a sample of experts is selected. These experts are asked to provide
potential solutions through a series of carefully designed questionnaires.

2. Each expert completes and returns the initial questionnaire.

3. The results of the questionnaire are compiled at a central location and the central coordinator
prepares a second questionnaire based on the previous answers.

4. Each member receives a copy of the results along with the second questionnaire.

5. Members are asked to review the results and respond to the second questionnaire. The results
typically trigger new solutions or cause changes in the original position.

6. The process is repeated until a consensus is reached.

The process is very time consuming and is primarily useful in illuminating broad range, long term
complex issues such as future effects of energy shortages that might occur.

CONCEPT OF TEAM VS. GROUP

Basis Work groups Teams

Objective To contribute to the goals of Teams have their own specific

organization objectives

Leader Strong & clearly focused No clear focused leader rather

it has shared leadership roles.

Accountability Individual members Whole team is accountable

meeting Formal & efficient meeting It encourage open ended

problem solving meeting
Power

• A capacity to influence the behaviour of others

• It is a potential that need not be actually used
• It is also a function of dependency. If a person is dependent on another, then the other has
power over the first
• Leaders use their power as a means to achieve a goal

5 Sources of Power

• Coercive Power – probably the most primitive source of power, but most often used, and most
difficult to control.
– It is a power that is dependent on fear
• Reward Power – the opposite of Coercive Power
– People comply with the wishes of another because it produces positive benefits
– Reward can be offered in the form of financial, but also friendship, praise and
acceptance (Maslow’s third level need)
• Legitimate Power – the power a person possesses as a result of their position in the
organization
• Expert Power – power possessed because of a specific knowledge, skill, expertise or
experience an individual has
– As the world has become more technical, this power source has grown
• Referent power – Power resulting to a person because of desirable characteristics or resources
– It develops out of admiration for the power holder
– Celebrities endoursing a product in commercials are a prime example of leveraging
this source of power

About the 5 Sources of Power

• Of course, power is only given to the extent that the level of dependence is present
– Individuals seek to minimize dependence by expanding their options (businesses
source multiple suppliers and customers, individuals seek education to widen their
attractiveness to prospective employers)
 • The least effective sources of power are Coercive, Legitimate and Reward
• Effective leaders leverage referent power and expert power.
– These are more personal forms of power achieved through interrelations with others

7 Ways to Increase Your Power

• Be reasonable – use facts and data to build a position then reason from it
• Be friendly – Create goodwill and good relations
• Build coalitions – Get the support of others who possess a similar view point
• Bargain – Negotiate for the exchange of benefits (to minimize dependency)
• Be assertive – A little more directly forceful
• Seek higher authority support – provides leverage
• Leverage sanctions – use organizationally derived rewards or punishments and the threat of
them to cause action

Politics

• Politics is present when employees convert their power into action

• Political behaviour is that activity that attempt to influence the distribution of advantages and
disadvantages within an organization
• It becomes most notable when it is outside the actor’s direct job responsibility

Why do politics exist?

• Organizations are made up of people with differing values, goals and interests
• Resources are limited which causes action to resolve the shortage resulting in conflict
• Facts used to allocate resources are open to interpretation.
– Tainting the facts, or concentrating on those facts that support an individual’s needs is
possible in a world where there is always ambiguity
– An example of limited resources are promotions (assuming there is limited
opportunities for promotion)
• The less trust there is in an organization, the more politics
• Unclear performance evaluations promote politics
Rules for Politics

• Fast Company Magazine’s Rules for Politics:

– Nobody wins unless everybody wins (we’ll discuss why next chapter)
– Don’t just ask for opinions, change them
– Everybody expects to be paid back
– Success can create opposition (what goes around comes around)

Organizational Change Management

– It is generally considered to be an organization-wide change, as opposed to smaller

changes such as adding a new person. (See first slide of this section for examples)
– It includes the management of changes to the organizational culture, business
processes, physical environment, job design / responsibilities, staff skills / knowledge
and policies / procedures.

What provokes Organizational Change?

Examples

– New Time and Attendance System

– New email system
– Transition from paper to electronic Requisitions
– Change from primarily print to primarily electronic media
– Introduction of a new technology (e.g. EDMS)
– Distribution of workers in new office space

Managing Organizational Change

• Widely communicate the potential need for change. Communicate what you're doing about it.
Communicate what was done and how it worked out. Communicate that Senior
Management backs this strategy unanimously.
 • Get as much feedback as practical from employees, including what they think the problems
are and what should be done to resolve them. If possible, work with a team of employees to
manage the change.
• Don't get wrapped up in doing change for the sake of change. Know why you're making the
change. What goal(s) do you hope to accomplish? Communicate the goals!

Organizational Change Management is “all of the actions required for an organization to understand,
prepare for, implement and take full advantage of significant change”.

REFERENCES:

Books:

Text Books:
1. Judge Robbins and Vohra, Organizational Behaviour, 15th edition ,Pearson
education India, New Delhi, 2013
2. Luthans, Organizational Behaviour, 12th edition ,Tata Mc Graw Hill, 2013
References:
1. Parikh and Gupta, Organizational Behaviour, Tata Mc Graw Hill, 2010
2. Mohanty Chitale and Dubey, Organizational Behaviour: Text and Cases, PHI Learning, Delhi,
2013

Websites:

1. http://www.studymode.com/essays/Organizational-Behaviour-517323.html
2. http://www.afairerworld.org/_Development/participation.html
3. http://www.zeepedia.com/read.php?transactional_analysis_ego_states_parent_ego_state_child
_ego_state_human_resource_development&b=32&c=10
4. http://www.managementstudyguide.com/organizational-diversity.htm
5. http://www.scribd.com/doc/27054239/Organizational-Behaviour
6. http://notes4exam.wordpress.com/2010/10/30/formal-and-informal-groups-p-j-philip/
7. http://www.citeman.com/571-groupthink-and-groupshift.html
8. http://www.slideshare.net/kottikkal/transactional-analysis-12807388